1. U.S. Code
  2. title 42
  3. chapter 8
  4. subchapter I
  5. § 1437e

Collapse to view only § 1437e. Designated housing for elderly and disabled families

§ 1437. Declaration of policy and public housing agency organization
(a) Declaration of policyIt 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 chapter—
(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 subchapter, 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 membershipExcept as provided in paragraphs (2) and (3), 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) ExceptionParagraph (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 1437c–1(e) of this title 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) Exception for certain jurisdictions
(A) Exception
(B) Advisory board requirement
(C) Covered agency or entityFor purposes of this paragraph, the term “covered agency” means a public housing agency or such other entity that administers Federal housing assistance for—
(I)1
1 So in original. Probably should be “(i)”.
the Housing Authority of the county of Los Angeles, California; or
(ii) any of the States of Alaska, Iowa, and Mississippi.
(4) Nondiscrimination
(Sept. 1, 1937, ch. 896, title I, § 2, as added Pub. L. 93–383, title II, § 201(a), Aug. 22, 1974, 88 Stat. 653; amended Pub. L. 97–35, title III, § 322(c), Aug. 13, 1981, 95 Stat. 402; renumbered title I, Pub. L. 100–358, § 5, June 29, 1988, 102 Stat. 681; Pub. L. 101–625, title V, § 572(2), Nov. 28, 1990, 104 Stat. 4236; Pub. L. 105–276, title V, § 505, Oct. 21, 1998, 112 Stat. 2522; Pub. L. 114–201, title I, § 114, July 29, 2016, 130 Stat. 804.)

CITE AS: 42 USC 1437

§ 1437a. Rental payments
(a) Families included; rent options; minimum amount; occupancy by police officers and over-income families
(1) Dwelling units assisted under this chapter shall be rented only to families who are low-income families at the time of their initial occupancy of such units. Reviews of family income shall be made pursuant to paragraph (6); except that, in the case of any family with a fixed income, as defined by the Secretary, after the initial review of the family’s income, the public housing agency or owner shall not be required to conduct a review of the family’s income for any year for which such family certifies, in accordance with such requirements as the Secretary shall establish, which shall include policies to adjust for inflation-based income changes, that 90 percent or more of the income of the family consists of fixed income, and that the sources of such income have not changed since the previous year, except that the public housing agency or owner shall conduct a review of each such family’s income not less than once every 3 years. Except as provided in paragraph (2) and subject to the requirement under paragraph (3), a family shall pay as rent for a dwelling unit assisted under this chapter (other than a family assisted under section 1437f(o) or (y) of this title or paying rent under section 1437f(c)(3)(B) 1
1 See References in Text note below.
of this title) the highest of the following amounts, rounded to the nearest dollar:
(A) 30 per centum of the family’s monthly adjusted income;
(B) 10 per centum of the family’s monthly income; or
(C) if the family is receiving payments for welfare assistance from a public agency and a part of such payments, adjusted in accordance with the family’s actual housing costs, is specifically designated by such agency to meet the family’s housing costs, the portion of such payments which is so designated.
(2)Rental payments for public housing families.—
(A)Authority for family to select.—
(i)In general.—A family residing in a public housing dwelling shall pay as monthly rent for the unit the amount determined under clause (i) or (ii) of subparagraph (B), subject to the requirement under paragraph (3) (relating to minimum rents). Each public housing agency shall provide for each family residing in a public housing dwelling unit owned, assisted, or operated by the agency to elect annually whether the rent paid by such family shall be determined under clause (i) or (ii) of subparagraph (B). A public housing agency may not at any time fail to provide both such rent options for any public housing dwelling unit owned, assisted, or operated by the agency.
(ii)Authority to retain flat and ceiling rents.—Notwithstanding clause (i) or any other provision of law, any public housing agency that is administering flat rents or ceiling rents pursuant to any authority referred to in section 519(d) of the Quality Housing and Work Responsibility Act of 1998 before the effective day of such Act may continue to charge rent in accordance with such rent provisions after such effective date, except that the agency shall provide for families residing in public housing dwelling units owned or operated by the agency to elect annually whether to pay rent under such provisions or in accordance with one of the rent options referred to in subparagraph (A).
(B)Allowable rent structures.—
(i)Flat rents.—Each public housing agency shall establish, for each dwelling unit in public housing owned or operated by the agency, a flat rental amount for the dwelling unit, which—(I) shall not be lower than 80 percent of—(aa) the applicable fair market rental established under section 1437f(c) of this title; or(bb) at the discretion of the Secretary, such other applicable fair market rental established by the Secretary that the Secretary determines more accurately reflects local market conditions and is based on an applicable market area that is geographically smaller than the applicable market area used for purposes of the applicable fair market rental under section 1437f(c) of this title;(II) shall be designed in accordance with subparagraph (D) so that the rent structures do not create a disincentive for continued residency in public housing by families who are attempting to become economically self-sufficient through employment or who have attained a level of self-sufficiency through their own efforts.
 except that a public housing agency may apply to the Secretary for exception allowing for a flat rental amount for a property that is lower than the amount otherwise determined pursuant to item (aa) or (bb) and the Secretary may grant such exception if the Secretary determines that the fair market rental for the applicable market area pursuant to item (aa) or (bb) does not reflect the market value of the property and the proposed lower flat rental amount is based on a market analysis of the applicable market and complies with subclause (II) and
If a new flat rental amount for a dwelling unit will increase a family’s existing rental payment by more than 35 percent, the new flat rental amount shall be phased in as necessary to ensure that the family’s existing rental payment does not increase by more than 35 percent annually. The preceding sentence shall not be construed to require establishment of rental amounts equal to 80 percent of the fair market rental in years when the fair market rental falls from the prior year.
(ii)Income-based rents.—(I)In general.—The monthly rental amount determined under this clause for a family shall be an amount, determined by the public housing agency, that does not exceed the greatest of the amounts (rounded to the nearest dollar) determined under subparagraphs (A), (B), and (C) of paragraph (1). This clause may not be construed to require a public housing agency to charge a monthly rent in the maximum amount permitted under this clause.(II)Discretion.—Subject to the limitation on monthly rental amount under subclause (I), a public housing agency may, in its discretion, implement a rent structure under this clause requiring that a portion of the rent be deposited to an escrow or savings account, imposing ceiling rents, or adopting income exclusions (such as those set forth in subsection (b)(5)(B)), or may establish another reasonable rent structure or amount.
(C)Switching rent determination methods because of hardship circumstances.—Notwithstanding subparagraph (A), in the case of a family that has elected to pay rent in the amount determined under subparagraph (B)(i), a public housing agency shall immediately provide for the family to pay rent in the amount determined under subparagraph (B)(ii) during the period for which such election was made upon a determination that the family is unable to pay the amount determined under subparagraph (B)(i) because of financial hardship, including—
(i) situations in which the income of the family has decreased because of changed circumstances, loss of 2
2 So in original. Probably should be “or”.
reduction of employment, death in the family, and reduction in or loss of income or other assistance;
(ii) an increase, because of changed circumstances, in the family’s expenses for medical costs, child care, transportation, education, or similar items; and
(iii) such other situations as may be determined by the agency.
(D)Encouragement of self-sufficiency.—The rental policy developed by each public housing agency shall encourage and reward employment and economic self-sufficiency.
(E)Income reviews.—Notwithstanding the second sentence of paragraph (1), in the case of families that are paying rent in the amount determined under subparagraph (B)(i), the agency shall review the income of such family not less than once every 3 years.
(3)Minimum rental amount.—
(A)Requirement.—Notwithstanding paragraph (1) of this subsection, the method for rent determination elected pursuant to paragraph (2)(A) of this subsection by a family residing in public housing, section 1437f(o)(2) of this title, 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 1437f of this title; and(III) each family who is assisted under the voucher program under section 1437f of this title, 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 1437f of this title 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 [8 U.S.C. 1101 et seq.] who would be entitled to public benefits but for title IV of the Personal Responsibility and Work Opportunity Reconciliation Act of 1996 [8 U.S.C. 1601 et seq.]; (II) the family would be evicted as a result of the imposition of the minimum rent requirement under subparagraph (A); (III) the income of the family has decreased because of changed circumstance, including loss of employment; (IV) a death in the family has occurred; and (V) other situations as may be determined by the agency (or the Secretary, in the case of a family described in subparagraph (A)(ii)).
(ii)Waiting period.—If a resident requests a hardship exemption under this subparagraph and the public housing agency (or the Secretary, in the case of a family described in subparagraph (A)(ii)) reasonably determines the hardship to be of a temporary nature, an exemption shall not be granted during the 90-day period beginning upon the making of a request for the exemption. A resident may not be evicted during such 90-day period for nonpayment of rent. In such a case, if the resident thereafter demonstrates that the financial hardship is of a long-term basis, the agency (or the Secretary) shall retroactively exempt the resident from the applicability of the minimum rent requirement for such 90-day period.
(4)Occupancy by police officers.—
(A)In general.—Subject to subparagraph (B) and notwithstanding any other provision of law, a public housing agency may, in accordance with the public housing agency plan for the agency, allow a police officer who is not otherwise eligible for residence in public housing to reside in a public housing dwelling unit. The number and location of units occupied by police officers under this paragraph and the terms and conditions of their tenancies shall be determined by the public housing agency.
(B)Increased security.—A public housing agency may take the actions authorized in subparagraph (A) only for the purpose of increasing security for the residents of a public housing project.
(C)Definition.—In this paragraph, the term “police officer” means any person determined by a public housing agency to be, during the period of residence of that person in public housing, employed on a full-time basis as a duly licensed professional police officer by a Federal, State, or local government or by any agency thereof (including a public housing agency having an accredited police force).
(5)Occupancy by over-income families in certain public housing.—
(A)Authority.—Notwithstanding any other provision of law, a public housing agency that owns or operates less than 250 units may, on a month-to-month basis, lease a dwelling unit in a public housing project to an over-income family in accordance with this paragraph, but only if there are no eligible families applying for housing assistance from the public housing agency for that month and the agency provides not less than 30-day public notice of the availability of such assistance.
(B)Terms and conditions.—The number and location of dwelling units of a public housing agency occupied under this paragraph by over-income families, and the terms and conditions of those tenancies, shall be determined by the public housing agency, except that—
(i) notwithstanding paragraph (2), rent for a unit shall be in an amount that is not less than the costs to operate the unit;
(ii) if an eligible family applies for residence after an over-income family moves in to the last available unit, the over-income family shall vacate the unit in accordance with notice of termination of tenancy provided by the agency, which shall be provided not less than 30 days before such termination; and
(iii) if a unit is vacant and there is no one on the waiting list, the public housing agency may allow an over-income family to gain immediate occupancy in the unit, while simultaneously providing reasonable public notice and outreach with regard to availability of the unit.
(C)Definition.—For purposes of this paragraph, the term “over-income family” means an individual or family that is not a low-income family at the time of initial occupancy.
(6)Reviews of family income.—
(A)Frequency.—Reviews of family income for purposes of this section shall be made—
(i) in the case of all families, upon the initial provision of housing assistance for the family;
(ii) annually thereafter, except as provided in paragraph (1) with respect to fixed-income families;
(iii) upon the request of the family, at any time the income or deductions (under subsection (b)(5)) of the family change by an amount that is estimated to result in a decrease of 10 percent (or such lower amount as the Secretary may, by notice, establish, or permit the public housing agency or owner to establish) or more in annual adjusted income; and
(iv) at any time the income or deductions (under subsection (b)(5)) of the family change by an amount that is estimated to result in an increase of 10 percent or more in annual adjusted income, or such other amount as the Secretary may by notice establish, except that any increase in the earned income of a family shall not be considered for purposes of this clause (except that earned income may be considered if the increase corresponds to previous decreases under clause (iii)), except that a public housing agency or owner may elect not to conduct such review in the last three months of a certification period.
(B)In general.—Reviews of family income for purposes of this section shall be subject to the provisions of section 3544 of this title.
(7)Calculation of income.—
(A)Use of current year income.—In determining family income for initial occupancy or provision of housing assistance pursuant to clause (i) of paragraph (6)(A) or pursuant to reviews pursuant to clause (iii) or (iv) of such paragraph, a public housing agency or owner shall use the income of the family as estimated by the agency or owner for the upcoming year.
(B)Use of prior year income.—In determining family income for annual reviews pursuant to paragraph (6)(A)(ii), a public housing agency or owner shall, except as otherwise provided in this paragraph and paragraph (1), use the income of the family as determined by the agency or owner for the preceding year, taking into consideration any redetermination of income during such prior year pursuant to clause (iii) or (iv) of paragraph (6)(A).
(C)Other income.—In determining the income for any family based on the prior year’s income, with respect to prior year calculations of income not subject to subparagraph (B), a public housing agency or owner may make other adjustments as it considers appropriate to reflect current income.
(D)Safe harbor.—A public housing agency or owner may, to the extent such information is available to the public housing agency or owner, determine the family’s income prior to the application of any deductions based on timely income determinations made for purposes of other means-tested Federal public assistance programs (including the program for block grants to States for temporary assistance for needy families under part A of title IV of the Social Security Act [42 U.S.C. 601 et seq.], a program for Medicaid assistance under a State plan approved under title XIX of the Social Security Act [42 U.S.C. 1396 et seq.], and the supplemental nutrition assistance program (as such term is defined in
(E)Electronic income verification.—The Secretary shall develop a mechanism for disclosing information to a public housing agency for the purpose of verifying the employment and income of individuals and families in accordance with section 453(j)(7)(E) of the Social Security Act (42 U.S.C. 653(j)(7)(E)), and shall ensure public housing agencies have access to information contained in the “Do Not Pay” system established by section 5 of the Improper Payments Elimination and Recovery Improvement Act of 2012 (Public Law 112–248; 126 Stat. 2392).1
(F)PHA and owner compliance.—A public housing agency or owner may not be considered to fail to comply with this paragraph or paragraph (6) due solely to any de minimis errors made by the agency or owner in calculating family incomes.
(8)Carbon monoxide alarms.—Each public housing agency shall ensure that carbon monoxide alarms or detectors are installed in each dwelling unit in public housing owned or operated by the public housing agency in a manner that meets or exceeds—
(A) the standards described in chapters 9 and 11 of the 2018 publication of the International Fire Code, as published by the International Code Council; or
(B) any other standards as may be adopted by the Secretary, including any relevant updates to the International Fire Code, through a notice published in the Federal Register.
(9) Qualifying smoke alarms
(A) In general
(B) DefinitionsFor purposes of this paragraph, the following definitions shall apply:
(i) Smoke alarm defined
(ii) Qualifying smoke alarm definedThe term “qualifying smoke alarm” means a smoke alarm that—(I) in the case of a dwelling unit built before December 29, 2022, and not substantially rehabilitated after December 29, 2022—(aa)(AA) is hardwired; or(BB) uses 10-year non rechargeable, nonreplaceable primary batteries and is sealed, is tamper resistant, and contains silencing means; and(bb) provides notification for persons with hearing loss as required by the National Fire Protection Association Standard 72, or any successor standard; or(II) in the case of a dwelling unit built or substantially rehabilitated after December 29, 2022, is hardwired.
(b) Definition of terms under this chapterWhen used in this chapter:
(1) The term “low-income housing” means decent, safe, and sanitary dwellings assisted under this chapter. The term “public housing” means low-income housing, and all necessary appurtenances thereto, assisted under this chapter other than under section 1437f of this title. The term “public housing” includes dwelling units in a mixed finance project that are assisted by a public housing agency with capital or operating assistance. When used in reference to public housing, the term “low-income housing project” or “project” means (A) housing developed, acquired, or assisted by a public housing agency under this chapter, and (B) the improvement of any such housing.
(2)
(A) The term “low-income families” means those families whose incomes do not exceed 80 per centum of the median income for the area, as determined by the Secretary with adjustments for smaller and larger families, except that the Secretary may establish income ceilings higher or lower than 80 per centum of the median for the area on the basis of the Secretary’s findings that such variations are necessary because of prevailing levels of construction costs or unusually high or low family incomes.
(B) The term “very low-income families” means low-income families whose incomes do not exceed 50 per centum of the median family income for the area, as determined by the Secretary with adjustments for smaller and larger families, except that the Secretary may establish income ceilings higher or lower than 50 per centum of the median for the area on the basis of the Secretary’s findings that such variations are necessary because of unusually high or low family incomes.
(C) The term extremely low-income families 3
3 So in original. Probably should be “ ‘extremely low-income families’ ”.
means very low-income families whose incomes do not exceed the higher of—
(i) the poverty guidelines updated periodically by the Department of Health and Human Services under the authority of section 9902(2) of this title applicable to a family of the size involved (except that this clause shall not apply in the case of public housing agencies or projects located in Puerto Rico or any other territory or possession of the United States); or
(ii) 30 percent of the median family income for the area, as determined by the Secretary, with adjustments for smaller and larger families (except that the Secretary may establish income ceilings higher or lower than 30 percent of the median for the area on the basis of the Secretary’s findings that such variations are necessary because of unusually high or low family incomes).
(D) Such ceilings shall be established in consultation with the Secretary of Agriculture for any rural area, as defined in section 1490 of this title, taking into account the subsidy characteristics and types of programs to which such ceilings apply. In determining median incomes (of persons, families, or households) for an area or establishing any ceilings or limits based on income under this chapter, the Secretary shall determine or establish area median incomes and income ceilings and limits for Westchester and Rockland Counties, in the State of New York, as if each such county were an area not contained within the metropolitan statistical area in which it is located. In determining such area median incomes or establishing such income ceilings or limits for the portion of such metropolitan statistical area that does not include Westchester or Rockland Counties, the Secretary shall determine or establish area median incomes and income ceilings and limits as if such portion included Westchester and Rockland Counties. In determining areas that are designated as difficult development areas for purposes of the low-income housing tax credit, the Secretary shall include Westchester and Rockland Counties, New York, in the New York City metropolitan area.
(3)Persons and families.—
(A)Single persons.—The term “families” includes families consisting of a single person in the case of (i) an elderly person, (ii) a disabled person, (iii) a displaced person, (iv) the remaining member of a tenant family, (v) a youth described in section 1437f(x)(2)(B) of this title, and (vi) any other single persons. In no event may any single person under clause (v) or (vi) of the first sentence be provided a housing unit assisted under this chapter of 2 or more bedrooms.
(B)Families.—The term “families” includes families with children and, in the cases of elderly families, near-elderly families, and disabled families, means families whose heads (or their spouses), or whose sole members, are elderly, near-elderly, or persons with disabilities, respectively. The term includes, in the cases of elderly families, near-elderly families, and disabled families, 2 or more elderly persons, near-elderly persons, or persons with disabilities living together, and 1 or more such persons living with 1 or more persons determined under the public housing agency plan to be essential to their care or well-being.
(C)Absence of children.—The temporary absence of a child from the home due to placement in foster care shall not be considered in determining family composition and family size.
(D)Elderly person.—The term “elderly person” means a person who is at least 62 years of age.
(E)Person with disabilities.—The term “person with disabilities” means a person who—
(i) has a disability as defined in section 423 of this title,
(ii) is determined, pursuant to regulations issued by the Secretary, to have a physical, mental, or emotional impairment which (I) is expected to be of long-continued and indefinite duration, (II) substantially impedes his or her ability to live independently, and (III) is of such a nature that such ability could be improved by more suitable housing conditions, or
(iii) has a developmental disability as defined in section 15002 of this title.
Such term shall not exclude persons who have the disease of acquired immunodeficiency syndrome or any conditions arising from the etiologic agent for acquired immunodeficiency syndrome. Notwithstanding any other provision of law, no individual shall be considered a person with disabilities, for purposes of eligibility for low-income housing under this subchapter, solely on the basis of any drug or alcohol dependence. The Secretary shall consult with other appropriate Federal agencies to implement the preceding sentence.
(F)Displaced person.—The term “displaced person” means a person displaced by governmental action, or a person whose dwelling has been extensively damaged or destroyed as a result of a disaster declared or otherwise formally recognized pursuant to Federal disaster relief laws.
(G)Near-elderly person.—The term “near-elderly person” means a person who is at least 50 years of age but below the age of 62.
(4)Income.—The term “income” means, with respect to a family, income received from all sources by each member of the household who is 18 years of age or older or is the head of household or spouse of the head of the household, plus unearned income by or on behalf of each dependent who is less than 18 years of age, as determined in accordance with criteria prescribed by the Secretary, in consultation with the Secretary of Agriculture, subject to the following requirements:
(A)Included amounts.—Such term includes recurring gifts and receipts, actual income from assets, and profit or loss from a business.
(B)Excluded amounts.—Such term does not include—
(i) any imputed return on assets, except to the extent that net family assets exceed $50,000, except that such amount (as it may have been previously adjusted) shall be adjusted for inflation annually by the Secretary in accordance with an inflationary index selected by the Secretary;
(ii) any amounts that would be eligible for exclusion under section 1613(a)(7) of the Social Security Act (42 U.S.C. 1382b(a)(7));
(iii) deferred disability benefits from the Department of Veterans Affairs that are received in a lump sum amount or in prospective monthly amounts;
(iv) any expenses related to aid and attendance under section 1521 of title 38 to veterans who are in need of regular aid and attendance; and
(v) exclusions from income as established by the Secretary by regulation or notice, or any amount required by Federal law to be excluded from consideration as income.
(C)Earned income of students.—Such term does not include—
(i) earned income, up to an amount as the Secretary may by regulation establish, of any dependent earned during any period that such dependent is attending school or vocational training on a full-time basis; or
(ii) any grant-in-aid or scholarship amounts related to such attendance used—(I) for the cost of tuition or books; or(II) in such amounts as the Secretary may allow, for the cost of room and board.
(D)Educational savings accounts.—Income shall be determined without regard to any amounts in or from, or any benefits from, any Coverdell education savings account under section 530 of title 26 or any qualified tuition program under section 529 of such title.
(E)Recordkeeping.—The Secretary may not require a public housing agency or owner to maintain records of any amounts excluded from income pursuant to this subparagraph.
(5)Adjusted income.—The term “adjusted income” means, with respect to a family, the amount (as determined by the public housing agency or owner) of the income of the members of the family residing in a dwelling unit or the persons on a lease, after any deductions from income as follows:
(A)Elderly and disabled families.—$525 in the case of any family that is an elderly family or a disabled family.
(B)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.
(C)Child care.—Any reasonable child care expenses necessary to enable a member of the family to be employed or to further his or her education.
(D)Health and medical expenses.—The amount, if any, by which 10 percent of annual family income is exceeded by the sum of—
(i) in the case of any elderly or disabled family, any unreimbursed health and medical care expenses; and
(ii) any unreimbursed reasonable attendant care and auxiliary apparatus expenses for each handicapped member of the family, if determined necessary by the public housing agency or owner to enable any member of such family to be employed.
The Secretary shall, by regulation, provide hardship exemptions to the requirements of this subparagraph and subparagraph (C) for impacted families who demonstrate an inability to pay calculated rents because of financial hardship. Such regulations shall include a requirement to notify tenants regarding any changes to the determination of adjusted income pursuant to such subparagraphs based on the determination of the family’s claim of financial hardship exemptions required by the preceding sentence. Such regulations shall be promulgated in consultation with tenant organizations, industry participants, and the Secretary of Health and Human Services, with an adequate comment period provided for interested parties.
(E)Permissive deductions.—Such additional deductions as a public housing agency may, at its discretion, establish, except that the Secretary shall establish procedures to ensure that such deductions do not materially increase Federal expenditures.
The Secretary shall annually calculate the amounts of the deductions under subparagraphs (A) and (B), as such amounts may have been previously calculated, by applying an inflationary factor as the Secretary shall, by regulation, establish, except that the actual deduction determined for each year shall be established by rounding such amount to the next lowest multiple of $25.
(6)Public housing agency.—
(A)In general.—Except as provided in subparagraph (B), the term “public housing agency” means any State, county, municipality, or other governmental entity or public body (or agency or instrumentality thereof) which is authorized to engage in or assist in the development or operation of public housing, or a consortium of such entities or bodies as approved by the Secretary.
(B)Section 1437f program.—For purposes of the program for tenant-based assistance under section 1437f of this title, such term includes—
(i) a consortia of public housing agencies that the Secretary determines has the capacity and capability to administer a program for assistance under such section in an efficient manner;
(ii) any other public or private nonprofit entity that, upon the effective date under section 503(a) of the Quality Housing and Work Responsibility Act of 1998, was administering any program for tenant-based assistance under section 1437f of this title (as in effect before the effective date of such Act), pursuant to a contract with the Secretary or a public housing agency; and
(iii) with respect to any area in which no public housing agency has been organized or where the Secretary determines that a public housing agency is unwilling or unable to implement a program for tenant-based assistance 4
4 So in original. Probably should be “assistance under”.
section 1437f of this title, or is not performing effectively—(I) the Secretary or another public or private nonprofit entity that by contract agrees to receive assistance amounts under and enter into housing assistance payments contracts with owners and perform the other functions of public housing agency under (II) notwithstanding any provision of State or local law, a public housing agency for another area that contracts with the Secretary to administer a program for housing assistance under section 1437f of this title, without regard to any otherwise applicable limitations on its area of operation.
(7) The term “State” includes the several States, the District of Columbia, the Commonwealth of Puerto Rico, the territories and possessions of the United States, and the Trust Territory of the Pacific Islands.
(8) The term “Secretary” means the Secretary of Housing and Urban Development.
(9)Drug-related criminal activity.—The term “drug-related criminal activity” means the illegal manufacture, sale, distribution, use, or possession with intent to manufacture, sell, distribute, or use, of a controlled substance (as such term is defined in section 802 of title 21).
(10)Mixed-finance project.—The term “mixed-finance project” means a public housing project that meets the requirements of section 1437z–7 of this title.
(11)Public housing agency plan.—The term “public housing agency plan” means the plan of a public housing agency prepared in accordance with section 1437c–1 of this title.
(12)Capital fund.—The term “Capital Fund” means the fund established under section 1437g(d) of this title.
(13)Operating fund.—The term “Operating Fund” means the fund established under section 1437g(e) of this title.
(c) Definition of terms used in reference to public housingWhen used in reference to public housing:
(1) The term “development” means any or all undertakings necessary for planning, land acquisition, demolition, construction, or equipment, in connection with a low-income housing project. The term “development cost” comprises the costs incurred by a public housing agency in such undertakings and their necessary financing (including the payment of carrying charges), and in otherwise carrying out the development of such project, but does not include the costs associated with the demolition of or remediation of environmental hazards associated with public housing units that will not be replaced on the project site, or other extraordinary site costs as determined by the Secretary. Construction activity in connection with a low-income housing project may be confined to the reconstruction, remodeling, or repair of existing buildings.
(2) The term “operation” means any or all undertakings appropriate for management, operation, services, maintenance, security (including the cost of security personnel), or financing in connection with a low-income housing proj­ect. The term also means the financing of tenant programs and services for families residing in low-income housing projects, particularly where there is maximum feasible participation of the tenants in the development and operation of such tenant programs and services. As used in this paragraph, the term “tenant programs and services” includes the development and maintenance of tenant organizations which participate in the management of low-income housing projects; the training of tenants to manage and operate such projects and the utilization of their services in project management and operation; counseling on household management, housekeeping, budgeting, money management, child care, and similar matters; advice as to resources for job training and placement, education, welfare, health, and other community services; services which are directly related to meeting tenant needs and providing a wholesome living environment; and referral to appropriate agencies in the community when necessary for the provision of such services. To the maximum extent available and appropriate, existing public and private agencies in the community shall be used for the provision of such services.
(3) The term “acquisition cost” means the amount prudently required to be expended by a public housing agency in acquiring property for a low-income housing project.
(4) The term “congregate housing” means low-rent housing with which there is connected a central dining facility where wholesome and economical meals can be served to occupants. Expenditures incurred by a public housing agency in the operation of a central dining facility in connection with congregate housing (other than the cost of providing food and service) shall be considered a cost of operation of the project.
(5) The terms “group home” and “independent living facility” have the meanings given such terms in section 8013(k) of this title.
(d) Availability of income matching information
(1) Disclosure to PHA
(2) Families coveredA family described in this paragraph is a family that resides in a dwelling unit—
(A) that is a public housing dwelling unit;
(B) for which tenant-based assistance is provided under section 1437f of this title,5
5 So in original. The comma probably should be a semicolon.
or
(C) for which project-based assistance is provided under section 1437f of this title, section 1437bb 1 of this title, or section 811.1
(Sept. 1, 1937, ch. 896, title I, § 3, as added Pub. L. 93–383, title II, § 201(a), Aug. 22, 1974, 88 Stat. 654; amended Pub. L. 94–375, § 2(f), Aug. 3, 1976, 90 Stat. 1068; Pub. L. 95–557, title II, § 206(c), Oct. 31, 1978, 92 Stat. 2091; Pub. L. 96–153, title II, § 202(a), Dec. 21, 1979, 93 Stat. 1106; Pub. L. 97–35, title III, § 322(a), Aug. 13, 1981, 95 Stat. 400; Pub. L. 98–181, title I [title II, §§ 202, 206(a)–(c)], Nov. 30, 1983, 97 Stat. 1178, 1179; Pub. L. 98–479, title I, § 102(b)(1)–(3), Oct. 17, 1984, 98 Stat. 2221; Pub. L. 100–242, title I, §§ 102(a), 111, 170(c), Feb. 5, 1988, 101 Stat. 1821, 1823, 1867; renumbered title I and amended Pub. L. 100–358, §§ 4, 5, June 29, 1988, 102 Stat. 680, 681; Pub. L. 101–235, title III, § 302, Dec. 15, 1989, 103 Stat. 2043; Pub. L. 101–625, title V, §§ 515(b), 572, 573(a)–(d), 574, Nov. 28, 1990, 104 Stat. 4199, 4236–4238; Pub. L. 102–550, title I, §§ 102–103(a)(2), 185(c)(4), title VI, §§ 621, 622(c), 625(a)(1), Oct. 28, 1992, 106 Stat. 3683, 3748, 3812, 3817, 3820; Pub. L. 103–233, title III, § 301, Apr. 11, 1994, 108 Stat. 369; Pub. L. 104–99, title IV, § 402(b)(1), (c), Jan. 26, 1996, 110 Stat. 40, 41; Pub. L. 104–330, title V, § 501(b)(1), Oct. 26, 1996, 110 Stat. 4041; Pub. L. 105–276, title V, §§ 506, 507(a), (c), 508(a), (b)(1), (c)(1), (d)(1), 520(a), 523, 524(a), 546, Oct. 21, 1998, 112 Stat. 2523–2529, 2562, 2565–2567, 2604; Pub. L. 106–74, title II, § 214(a), Oct. 20, 1999, 113 Stat. 1074; Pub. L. 106–402, title IV, § 401(b)(7), Oct. 30, 2000, 114 Stat. 1738; Pub. L. 110–289, div. B, title VI, § 2608, July 30, 2008, 122 Stat. 2862; Pub. L. 113–76, div. L, title II, §§ 210, 212, 238(a), Jan. 17, 2014, 128 Stat. 625, 626, 635; Pub. L. 113–235, div. K, title II, § 238, Dec. 16, 2014, 128 Stat. 2758; Pub. L. 114–94, div. G, title LXXVIII, § 78001(a), Dec. 4, 2015, 129 Stat. 1791; Pub. L. 114–201, title I, § 102(a), (c), July 29, 2016, 130 Stat. 786, 788; Pub. L. 116–260, div. Q, title I, §§ 101(b)(1), 103(a), Dec. 27, 2020, 134 Stat. 2163, 2166; Pub. L. 117–328, div. AA, title VI, § 601(a)(1), Dec. 29, 2022, 136 Stat. 5542.)

CITE AS: 42 USC 1437a

§ 1437a–1. Repealed. Pub. L. 105–276, title V, § 582(a)(1), Oct. 21, 1998, 112 Stat. 2643

CITE AS: 42 USC 1437a-1

§ 1437b. Loans and commitments to make loans for low-income housing projects
(a) Authority of Secretary; interest rates; repayment date; use as security for obligations of public housing agency
(b) Issuance of obligations by Secretary; limitation on amounts; forms and denominations; terms and conditions; purchase, establishment of maturities and rates of interest, and sale by Secretary of the Treasury
(c) Public and Indian housing financing reforms
(1) At such times as the Secretary may determine, and in accordance with such accounting and other procedures as the Secretary may prescribe, each loan made by the Secretary under subsection (a) that has any principal amount outstanding or any interest amount outstanding or accrued shall be forgiven; and the terms and conditions of any contract, or any amendment to a contract, for such loan with respect to any promise to repay such principal and interest shall be canceled. Such cancellation shall not affect any other terms and conditions of such contract, which shall remain in effect as if the cancellation had not occurred. This paragraph shall not apply to any loan the repayment of which was not to be made using annual contributions, or to any loan all or part of the proceeds of which are due a public housing agency from contractors or others.
(2)
(A) On April 7, 1986, each note or other obligation issued by the Secretary to the Secretary of the Treasury pursuant to subsection (b), together with any promise to repay the principal and unpaid interest that has accrued on each note or obligation, shall be forgiven; and any other term or condition specified by each such obligation shall be canceled.
(B) On September 30, 1986, and on any subsequent September 30, each such note or other obligation issued by the Secretary to the Secretary of the Treasury pursuant to subsection (b) during the fiscal year ending on such date, together with any promise to repay the principal and unpaid interest that has accrued on each note or obligation, shall be forgiven; and any other term or condition specified by each such obligation shall be canceled.
(3) Any amount of budget authority (and contract authority) that becomes available during any fiscal year as a result of the forgiveness of any loan, note, or obligation under this subsection shall be rescinded.
(Sept. 1, 1937, ch. 896, title I, § 4, as added Pub. L. 93–383, title II, § 201(a), Aug. 22, 1974, 88 Stat. 656; amended Pub. L. 97–35, title III, § 322(c), Aug. 13, 1981, 95 Stat. 402; Pub. L. 98–479, title II, § 203(b)(1), Oct. 17, 1984, 98 Stat. 2229; Pub. L. 99–272, title III, § 3004, Apr. 7, 1986, 100 Stat. 102; renumbered title I, Pub. L. 100–358, § 5, June 29, 1988, 102 Stat. 681; Pub. L. 101–625, title V, § 572(2), Nov. 28, 1990, 104 Stat. 4236.)

CITE AS: 42 USC 1437b

§ 1437c. Contributions for low-income housing projects
(a) Contract authorization; amounts; use as security for obligations of public housing agency; use of existing structures
(1) The Secretary may make annual contributions to public housing agencies to assist in achieving and maintaining the lower income character of their projects. The Secretary shall embody the provisions for such annual contributions in a contract guaranteeing their payment. The contribution payable annually under this section shall in no case exceed a sum equal to the annual amount of principal and interest payable on obligations issued by the public housing agency to finance the development or acquisition cost of the lower income project involved. Annual contributions payable under this section shall be pledged, if the Secretary so requires, as security for obligations issued by a public housing agency to assist the development or acquisition of the project to which annual contributions relate and shall be paid over a period not to exceed 40 years.
(2) The Secretary may make contributions (in the form of grants) to public housing agencies to cover the development cost of public housing projects. The contract under which such contributions shall be made shall specify the amount of capital contributions required for each project to which the contract pertains, and that the terms and conditions of such contract shall remain in effect for a 40-year period.
(3) The amount of contributions that would be established for a newly constructed project by a public housing agency designed to accommodate a number of families of a given size and kind may be established under this section for a project by such public housing agency that would provide housing for the comparable number, sizes, and kinds of families through the acquisition and rehabilitation, or use under lease, of structures that are suitable for low-income housing use and obtained in the local market.
(b) Maximum amount of contributions; regulations; criteria for rates of contribution
(c) Limitation on aggregate contractual contributions; contracts for preliminary loans; payments of annual contributions; limitations on specific authorities
(1) The Secretary may enter into contracts for annual contributions aggregating not more than $7,875,049,000 per annum, which amount shall be increased by $1,494,400,000 on October 1, 1980, and by $906,985,000 on October 1, 1981. The additional authority to enter into such contracts provided on or after October 1, 1980, shall be effective only in such amounts as may be approved in appropriation Acts. In addition, the aggregate amount which may be obligated over the duration of the contracts may not exceed $31,200,000,000 with respect to the additional authority provided on October 1, 1980, and $18,087,370,000 with respect to the additional authority provided on October 1, 1981.
(2) The Secretary shall enter into only such new contracts for preliminary loans as are consistent with the number of dwelling units for which contracts for annual contributions may be entered into.
(3) The full faith and credit of the United States is solemnly pledged to the payment of all annual contributions contracted for pursuant to this section, and there are hereby authorized to be appropriated in each fiscal year, out of any money in the Treasury not otherwise appropriated, the amounts necessary to provide for such payments.
(4) All payments of annual contributions pursuant to this section shall be made out of any funds available for purposes of this chapter when such payments are due, except that funds obtained through the issuance of obligations pursuant to section 1437b(b) of this title (including repayments or other realizations of the principal of loans made out of such funds) shall not be available for the payment of such annual contributions.
(5) During such period as the Secretary may prescribe for starting construction, the Secretary may approve the conversion of public housing development authority for use under section 1437g of this title or for use for the acquisition and rehabilitation of property to be used in public housing, if the public housing agency, after consultation with the unit of local government, certifies that such assistance would be more effectively used for such purpose, and if the total number of units assisted will not be less than 90 per centum of the units covered by the original reservation.
(6) The aggregate amount of budget authority which may be obligated for contracts for annual contributions and for grants under section 1437o of this title is increased by $9,912,928,000 on October 1, 1983, and by such sums as may be approved in appropriation Acts on October 1, 1984. The aggregate amount of budget authority that may be obligated for contracts for annual contributions for assistance under section 1437f of this title, for contracts referred to in paragraphs (7)(A)(iv) and (7)(B)(iv), for grants for public housing, for comprehensive improvement assistance, and for amendments to existing contracts, is increased (to the extent approved in appropriation Acts) by $7,167,000,000 on October 1, 1987, and by $7,300,945,000 on October 1, 1988. The aggregate amount of budget authority that may be obligated for assistance referred to in paragraph (7) is increased (to the extent approved in appropriation Acts) by $16,194,000,000 on October 1, 1990, and by $14,709,400,000 on October 1, 1991. The aggregate amount of budget authority that may be obligated for assistance referred to in paragraph (7) is increased (to the extent approved in appropriation Acts) by $14,710,990,520 on October 1, 1992, and by $15,328,852,122 on October 1993.
(7)
(A) Using the additional budget authority provided under paragraph (6) and the balances of budget authority that become available during fiscal year 1993, the Secretary shall, to the extent approved in appropriation Acts, reserve authority to enter into obligations aggregating—
(i) for public housing grants under subsection (a)(2), not more than $830,900,800, of which amount not more than $257,320,000 shall be available for Indian housing;
(ii) for assistance under section 1437f of this title, not more than $1,977,662,720, of which $20,000,000 shall be available for 15-year contracts for project-based assistance to be used for a multicultural tenant empowerment and homeownership project located in the District of Columbia, except that assistance provided for such project shall not be considered for purposes of the percentage limitations under section 1437f(i)(2) of this title; except that not more than 49 percent of any amounts appropriated under this clause may be used for vouchers under section 1437f(o) of this title;
(iii) for comprehensive improvement assistance grants under section 1437l(k) of this title, not more than $3,100,000,000;
(iv) for assistance under section 1437f of this title for property disposition, not more than $93,032,000;
(v) for assistance under section 1437f of this title for loan management, not more than $202,000,000;
(vi) for extensions of contracts expiring under section 1437f of this title, not more than $6,746,135,000, which shall be for 5-year contracts for assistance under section 1437f of this title and for loan management assistance under such section;
(vii) for amendments to contracts under section 1437f of this title, not more than $1,350,000,000;
(viii) for public housing lease adjustments and amendments, not more than $83,055,000;
(ix) for conversions from leased housing contracts under section 1421b of this title (as in effect immediately before August 22, 1974) to assistance under section 1437f of this title, not more than $12,767,000; and
(x) for grants under section 1437v of this title for revitalization of severely distressed public housing, not more than $300,000,000.
(B) Using the additional budget authority provided under paragraph (6) and the balances of budget authority that become available during fiscal year 1994, the Secretary shall, to the extent approved in appropriation Acts, reserve authority to enter into obligations aggregating—
(i) for public housing grants under subsection (a)(2), not more than $865,798,634, of which amount not more than $268,127,440 shall be available for Indian housing;
(ii) for assistance under section 1437f of this title, not more than $2,060,724,554, of which $20,000,000 shall be available for 15-year contracts for project-based assistance to be used for a multicultural tenant empowerment and homeownership project located in the District of Columbia, except that assistance provided for such project shall not be considered for purposes of the percentage limitations under section 1437f(i)(2) of this title; except that not more than 49 percent of any amounts appropriated under this clause may be used for vouchers under section 1437f(o) of this title;
(iii) for comprehensive improvement assistance grants under section 1437l(k) of this title, not more than $3,230,200,000;
(iv) for assistance under section 1437f of this title for property disposition, not more than $96,939,344;
(v) for assistance under section 1437f of this title for loan management, not more than $210,484,000;
(vi) for extensions of contracts expiring under section 1437f of this title, not more than $7,029,472,670, which shall be for 5-year contracts for assistance under section 1437f of this title and for loan management assistance under such section;
(vii) for amendments to contracts under section 1437f of this title, not more than $1,406,700,000;
(viii) for public housing lease adjustments and amendments, not more than $86,543,310;
(ix) for conversions from leased housing contracts under section 1421b of this title (as in effect immediately before August 22, 1974) to assistance under section 1437f of this title, not more than $13,303,214; and
(x) for grants under section 1437v of this title for revitalization of severely distressed public housing, not more than $312,600,000.
(C)
(i) Any amount available for the conversion of a project to assistance under section 1437f(b)(1) of this title, if not required for such purpose, shall be used for assistance under section 1437f(b)(1) of this title.
(ii) Any amount available for assistance under section 1437f of this title for property disposition, if not required for such purpose, shall be used for assistance under section 1437f(b)(1) of this title.
(8) Any amount available for Indian housing under subsection (a) that is recaptured shall be used only for such housing.
(d) Scope of contracts for loans or annual contributions
(e) Local determination of need as prerequisite for contracts for preliminary loans, and contracts for loans or annual contributions; noticeIn recognition that there should be local determination of the need for low-income housing to meet needs not being adequately met by private enterprise—
(1) the Secretary shall not make any contract with a public housing agency for preliminary loans (all of which shall be repaid out of any moneys which become available to such agency for the development of the projects involved) for surveys and planning in respect to any low-income housing projects (i) unless the governing body of the locality involved has by resolution approved the application of the public housing agency for such preliminary loan; and (ii) unless the public housing agency has demonstrated to the satisfaction of the Secretary that there is need for such low-income housing which is not being met by private enterprise; and
(2) the Secretary shall not make any contract for loans (other than preliminary loans) or for contributions pursuant to this chapter unless the governing body of the locality involved has entered into an agreement with the public housing agency providing for the local cooperation required by the Secretary pursuant to this chapter; 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 subchapter 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).
(f) Modification by Secretary of terms of contracts, etc.; limitations; amendment or supersedure of contracts for annual contributions or loans
(g) Pledge of annual contributions as guarantee of payment of obligations issued by public housing agency; exception
(h) Audits
(1) By Secretary and Comptroller General
(2) Withholding of amounts for audits under Single Audit Act
(i) Prohibition on use of funds
(Sept. 1, 1937, ch. 896, title I, § 5, as added Pub. L. 93–383, title II, § 201(a), Aug. 22, 1974, 88 Stat. 656; amended Pub. L. 94–375, § 2(a), (b), Aug. 3, 1976, 90 Stat. 1067; Pub. L. 95–24, title I, § 101(a), Apr. 30, 1977, 91 Stat. 55; Pub. L. 95–128, title II, § 201(a), (b), Oct. 12, 1977, 91 Stat. 1128; Pub. L. 95–557, title II, § 206(a), (b), Oct. 31, 1978, 92 Stat. 2091; Pub. L. 95–619, title II, § 251(a), Nov. 9, 1978, 92 Stat. 3235; Pub. L. 96–153, title II, § 201(a), (b), Dec. 21, 1979, 93 Stat. 1105; Pub. L. 96–399, title II, §§ 201(a), 210, Oct. 8, 1980, 94 Stat. 1624, 1636; Pub. L. 97–35, title III, §§ 321(a)–(c), 322(c), Aug. 13, 1981, 95 Stat. 398, 402; Pub. L. 98–181, title I [title II, § 201(b)], Nov. 30, 1983, 97 Stat. 1176; Pub. L. 100–242, title I, §§ 101, 112(a), (b)(1), 113–115, Feb. 5, 1988, 101 Stat. 1820, 1823–1825; renumbered title I and amended Pub. L. 100–358, §§ 3, 5, June 29, 1988, 102 Stat. 680, 681; Pub. L. 101–625, title IV, § 417(a), title V, §§ 571, 572(2), Nov. 28, 1990, 104 Stat. 4161, 4235, 4236; Pub. L. 102–550, title I, §§ 101, 111(a), title VI, § 624, Oct. 28, 1992, 106 Stat. 3681, 3687, 3819; Pub. L. 104–19, title I, § 1002(c), July 27, 1995, 109 Stat. 236; Pub. L. 104–330, title V, § 501(b)(2), Oct. 26, 1996, 110 Stat. 4042; Pub. L. 105–276, title V, §§ 510, 518(a)(1), (b), 522(b)(1), 566, Oct. 21, 1998, 112 Stat. 2531, 2551, 2564, 2632.)

CITE AS: 42 USC 1437c

§ 1437c–1. Public housing agency plans
(a) 5-year plan
(1) In generalSubject to paragraph (3), 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) Statement of goals
(3) Initial plan
(b) Annual plan
(1) In general
(2) Updates
(3) Exemption of certain PHAs from filing requirement
(A) In generalNotwithstanding paragraph (1) or any other provision of this chapter—
(i) the requirement under paragraph (1) shall not apply to any qualified public housing agency; and
(ii) except as provided in subsection (e)(4)(B), any reference in this section or any other provision of law to a “public housing agency” shall not be considered to refer to any qualified public housing agency, to the extent such reference applies to the requirement to submit an annual public housing agency plan under this subsection.
(B) Civil rights certification
(C) DefinitionFor purposes of this section, the term “qualified public housing agency” means a public housing agency that meets the following requirements:
(i) The sum of (I) the number of public housing dwelling units administered by the agency, and (II) the number of vouchers under section 1437f(o) of this title administered by the agency, is 550 or fewer.
(ii) The agency is not designated under section 1437d(j)(2) of this title as a troubled public housing agency, and does not have a failing score under the section 8 [42 U.S.C. 1437f] Management Assessment Program during the prior 12 months.
(c) Procedures
(1) In general
(2) ContentsThe 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 [42 U.S.C. 12701 et seq.], 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) ContentsAn 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 chapter is to be made available:
(1) Needs
(2) Financial resources
(3) Eligibility, selection, and admissions policiesA 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 1437f(o) of this title, 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 1437d(r) of this title; and
(B) the admissions policy under section 1437n(a)(3)(B) of this title for deconcentration of lower-income families.
(4) Rent determination
(5) Operation and management
(6) Grievance procedure
(7) Capital improvements
(8) Demolition and dispositionWith 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 1437p of this title; and
(B) a timetable for the demolition or disposition.
(9) Designation of housing for elderly and disabled families
(10) Conversion of public housingWith 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 1437z–5 of this title or that the public housing agency plans to voluntarily convert under section 1437t of this title;
(B) an analysis of the projects or buildings required to be converted under section 1437z–5 of this title; and
(C) a statement of the amount of assistance received under this chapter to be used for rental assistance or other housing assistance in connection with such conversion.
(11) Homeownership
(12) Community service and self-sufficiencyA 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 1437j of this title (relating to community service and treatment of income changes resulting from welfare program requirements).
(13) Domestic violence, dating violence, sexual assault, or stalking programsA description of—
(A) any activities, services, or programs provided or offered by an agency, either directly or in partnership with other service providers, to child or adult victims of domestic violence, dating violence, sexual assault, or stalking;
(B) any activities, services, or programs provided or offered by a public housing agency that helps child and adult victims of domestic violence, dating violence, sexual assault, or stalking, to obtain or maintain housing; and
(C) any activities, services, or programs provided or offered by a public housing agency to prevent domestic violence, dating violence, sexual assault, and stalking, or to enhance victim safety in assisted families.
(14) Safety and crime preventionA plan established by the public housing agency, which shall be subject to the following requirements:
(A) Safety measures
(B) Establishment
(C) Content
(D) Secretarial action
(15) Pets
(16) Civil rights certification
(17) Annual audit
(18) Asset management
(19) Other
(e) Resident advisory board
(1) In general
(2) Functions
(3) WaiverThe 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).
(4) Qualified public housing agencies
(A) In general
(B) Applicability of waiver authority
(f) Public hearings
(1) In general
(2) Availability of information and noticeNot 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 1
1 So in original. The word “that” probably should not appear.
the information is available as required under subparagraph (A); and
(ii) that 1 a public hearing under paragraph (1) will be conducted.
(3) Adoption of planA 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
(5) Qualified public housing agencies
(A) RequirementNotwithstanding that qualified public housing agencies are exempt under subsection (b)(3)(A) from the requirement under this section to conduct a public hearing regarding the annual public housing plan of the agency, each qualified public housing agency shall annually conduct a public hearing—
(i) to discuss any changes to the goals, objectives, and policies of the agency; and
(ii) to invite public comment regarding such changes.
(B) Availability of information and noticeNot later than 45 days before the date of any hearing described in subparagraph (A), a qualified public housing agency shall—
(i) make all information relevant to the hearing and any determinations of the agency regarding changes to the goals, objectives, and policies of the agency to be considered at the hearing available for inspection by the public at the principal office of the public housing agency during normal business hours; and
(ii) publish a notice informing the public that—(I) the information is available as required under clause (i); and(II) a public hearing under subparagraph (A) will be conducted.
(g) Amendments and modifications to plans
(1) In generalExcept 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 noticeEach 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
(2) Annual submission
(i) Review and determination of compliance
(1) ReviewSubject 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 chapter 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 [42 U.S.C. 12701 et seq.] for the jurisdiction in which the public housing agency is located; and
(C) are not prohibited by or inconsistent with any provision of this subchapter or other applicable law.
(2) Elements exempted from review
(3) Disapproval
(4) Determination of compliance
(A) In general
(B) Failure to provide notice of disapproval
(5) Public availability
(j) Troubled and at-risk PHAs
(1) In general
(2) Troubled agencies
(k) Streamlined planIn 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 1437d(j)(2) of this title; 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
(2) Investigation and enforcementIn carrying out this subchapter, 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.
(Sept. 1, 1937, ch. 896, title I, § 5A, as added Pub. L. 105–276, title V, § 511(a), Oct. 21, 1998, 112 Stat. 2531; amended Pub. L. 109–162, title VI, § 603, Jan. 5, 2006, 119 Stat. 3040; Pub. L. 110–289, div. B, title VII, § 2702, July 30, 2008, 122 Stat. 2863.)

CITE AS: 42 USC 1437c-1

§ 1437d. Contract provisions and requirements; loans and annual contributions
(a) Conditions; elevators
(b) Limitation on development costs
(1) Each contract for loans (other than preliminary loans) or contributions for the development, acquisition, or operation of public housing shall provide that the total development cost of the project on which the computation of any annual contributions under this chapter may be based may not exceed the amount determined under paragraph (2) (for the appropriate structure type) unless the Secretary provides otherwise, and in any case may not exceed 110 per centum of such amount unless the Secretary for good cause determines otherwise.
(2) For purposes of paragraph (1), the Secretary shall determine the total development cost by multiplying the construction cost guideline for the project (which shall be determined by averaging the current construction costs, as listed by not less than 2 nationally recognized residential construction cost indices, for publicly bid construction of a good and sound quality) by—
(A) in the case of elevator type structures, 1.6; and
(B) in the case of nonelevator type structures, 1.75.
(3) In calculating the total development cost of a project under paragraph (2), the Secretary shall consider only capital assistance provided by the Secretary to a public housing agency that are 1
1 So in original. Probably should be “is”.
authorized for use in connection with the development of public housing, and shall exclude all other amounts, including amounts provided under—
(A) the HOME investment partnerships program authorized under title II of the Cranston-Gonzalez National Affordable Housing Act [42 U.S.C. 12721 et seq.]; or
(B) the community development block grants program under title I of the Housing and Community Development Act of 1974 [42 U.S.C. 5301 et seq.].
(4) The Secretary may restrict the amount of capital funds that a public housing agency may use to pay for housing construction costs. For purposes of this paragraph, housing construction costs include the actual hard costs for the construction of units, builders’ overhead and profit, utilities from the street, and finish landscaping.
(c) Revision of maximum income limits; certification of compliance with requirements; notification of eligibility; informal hearing; compliance with procedures for sound managementEvery contract for contributions shall provide that—
(1) the Secretary may require the public housing agency to review and revise its maximum income limits if the Secretary determines that changed conditions in the locality make such revision necessary in achieving the purposes of this chapter;
(2) the public housing agency shall determine, and so certify to the Secretary, that each family in the project was admitted in accordance with duly adopted regulations and approved income limits; and the public housing agency shall review the incomes of families living in the project no less frequently than annually;
(3) the public housing agency shall promptly notify (i) any applicant determined to be ineligible for admission to the project of the basis for such determination and provide the applicant upon request, within a reasonable time after the determination is made, with an opportunity for an informal hearing on such determination, and (ii) any applicant determined to be eligible for admission to the project of the approximate date of occupancy insofar as such date can be reasonably determined; and
(4) the public housing agency shall comply with such procedures and requirements as the Secretary may prescribe to assure that sound management practices will be followed in the operation of the project, including requirements pertaining to—
(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 1437c–1(f) of this title and under the requirements applicable to the comprehensive housing affordability strategy for the relevant jurisdiction;
(B) the establishment of satisfactory procedures designed to assure the prompt payment and collection of rents and the prompt processing of evictions in the case of nonpayment of rent;
(C) the establishment of effective tenant-management relationships designed to assure that satisfactory standards of tenant security and project maintenance are formulated and that the public housing agency (together with tenant councils where they exist) enforces those standards fully and effectively;
(D) the development by local housing authority managements of viable homeownership opportunity programs for low-income families capable of assuming the responsibilities of homeownership;
(E) for each agency that receives assistance under this subchapter, the establishment and maintenance of a system of accounting for rental collections and costs (including administrative, utility, maintenance, repair and other operating costs) for each project or operating cost center (as determined by the Secretary), which collections and costs shall be made available to the general public and submitted to the appropriate local public official (as determined by the Secretary); except that the Secretary may permit agencies owning or operating less than 500 units to comply with the requirements of this subparagraph by accounting on an agency-wide basis; and
(F) requiring the public housing agency to ensure and maintain compliance with subtitle C of title VI of the Housing and Community Development Act of 1992 [42 U.S.C. 13601 et seq.] and any regulations issued under such subtitle.
(d) Exemption from personal and real property taxes; payments in lieu of taxes; cash contribution or tax remission
(e) Repealed. Pub. L. 105–276, title V, § 529(2), Oct. 21, 1998, 112 Stat. 2569
(f) Housing quality requirements
(1) In general
(2) Federal standards
(3) Annual inspections
(g) Substantial default; conveyance of title and delivery of possession; reconveyance and redelivery; payments for outstanding obligationsEvery contract for contributions (including contracts which amend or supersede contracts previously made) may provide that—
(1) upon the occurrence of a substantial default in respect to the covenants or conditions to which the public housing agency is subject (as such substantial default shall be defined in such contract), the public housing agency shall be obligated at the option of the Secretary either to convey title in any case where, in the determination of the Secretary (which determination shall be final and conclusive), such conveyance of title is necessary to achieve the purposes of this chapter, or to deliver to the Secretary possession of the project, as then constituted, to which such contract relates; and
(2) the Secretary shall be obligated to reconvey or redeliver possession of the project as constituted at the time of reconveyance or redelivery, to such public housing agency or to its successor (if such public housing agency or a successor exists) upon such terms as shall be prescribed in such contract, and as soon as practicable (i) after the Secretary is satisfied that all defaults with respect to the project have been cured, and that the project will, in order to fulfill the purposes of this chapter, thereafter be operated in accordance with the terms of such contract; or (ii) after the termination of the obligation to make annual contributions available unless there are any obligations or covenants of the public housing agency to the Secretary which are then in default. Any prior conveyances and reconveyances or deliveries and redeliveries of possession shall not exhaust the right to require a conveyance or delivery of possession of the project to the Secretary pursuant to subparagraph (1) upon the subsequent occurrence of a substantial default.
Whenever such a contract for annual contributions includes provisions which the Secretary in such contract determines are in accordance with this subsection, and the portion of the annual contribution payable for debt service requirements pursuant to such contract has been pledged by the public housing agency as security for the payment of the principal and interest on any of its obligations, the Secretary (notwithstanding any other provisions of this chapter) shall continue to make such annual contributions available for the project so long as any of such obligations remain outstanding, and may covenant in such contract that in any event such annual contributions shall in each year be at least equal to an amount which, together with such income or other funds as are actually available from the project for the purpose at the time such annual contribution is made, will suffice for the payment of all installments, falling due within the next succeeding twelve months, of principal and interest on the obligations for which the annual contributions provided for in the contract shall have been pledged as security. In no case shall such annual contributions be in excess of the maximum sum specified in the contract involved, nor for longer than the remainder of the maximum period fixed by the contract.
(h) New construction contracts
(i) Reserve fund; major repairs
(j) Performance indicators for public housing agencies
(1) The Secretary shall develop and publish in the Federal Register indicators to assess the management performance of public housing agencies and resident management corporations. The indicators shall be established by rule under section 553 of title 5. Such indicators shall enable the Secretary to evaluate the performance of public housing agencies and resident management corporations in all major areas of management operations. The Secretary shall, in particular, use the following indicators for public housing agencies, to the extent practicable:
(A) The number and percentage of vacancies within an agency’s inventory, including the progress that an agency has made within the previous 3 years to reduce such vacancies.
(B) The amount and percentage of funds provided to the public housing agency from the Capital Fund under section 1437g(d) of this title which remain unobligated by the public housing agency after 3 years.
(C) The percentage of rents uncollected.
(D) The utility consumption (with appropriate adjustments to reflect different regions and unit sizes).
(E) The average period of time that an agency requires to repair and turn-around vacant units.
(F) The proportion of maintenance work orders outstanding, including any progress that an agency has made during the preceding 3 years to reduce the period of time required to complete maintenance work orders.
(G) The percentage of units that an agency fails to inspect to ascertain maintenance or modernization needs within such period of time as the Secretary deems appropriate (with appropriate adjustments, if any, for large and small agencies).
(H) The extent to which the public housing agency—
(i) coordinates, promotes, or provides effective programs and activities to promote the economic self-sufficiency of public housing residents; and
(ii) provides public housing residents with opportunities for involvement in the administration of the public housing.
(I)2
2 Another subpar. (I) is set out after subpar. (K).
The extent to which the public housing agency—
(i) implements effective screening and eviction policies and other anticrime strategies; and
(ii) coordinates with local government officials and residents in the project and implementation of such strategies.
(J) The extent to which the public housing agency is providing acceptable basic housing conditions.
(K) Any other factors as the Secretary deems appropriate which shall not exceed the seven factors in the statute, plus an additional five.(I)3
3 Another subpar. (I) is set out before subpar. (J).
The Secretary shall:
(1) administer the system of evaluating public housing agencies flexibly to ensure that such agencies are not penalized as result of circumstances beyond their control;
(2) reflect in the weights assigned to the various indicators the differences in the difficulty of managing individual projects that result from their physical condition and their neighborhood environment; and
(3) determine a public housing agency’s status as “troubled with respect to the program under section 1437l 4
4 See References in Text note below.
of this title” based upon factors solely related to its ability to carry out that program.
(2)
(A)
(i) The Secretary shall, under the rulemaking procedures under section 553 of title 5, establish procedures for designating troubled public housing agencies, which procedures shall include identification of serious and substantial failure to perform as measured by the performance indicators specified under paragraph (1) and such other factors as the Secretary may deem to be appropriate. Such procedures shall provide that an agency that fails on a widespread basis to provide acceptable basic housing conditions for its residents shall be designated as a troubled public housing agency. The Secretary may use a simplified set of indicators for public housing agencies with less than 250 public housing units. The Secretary shall also designate, by rule under section 553 of title 5, agencies that are troubled with respect to the program for assistance from the Capital Fund under section 1437g(d) of this title.
(ii) The Secretary may also, in consultation with national organizations representing public housing agencies and public officials (as the Secretary determines appropriate), identify and commend public housing agencies that meet the performance standards established under paragraph (1) in an exemplary manner.
(iii) The Secretary shall establish procedures for public housing agencies to appeal designation as a troubled agency (including designation as a troubled agency for purposes of the program for assistance from the Capital Fund under section 1437g(d) of this title), to petition for removal of such designation, and to appeal any refusal to remove such designation.
(B)
(i) Upon designating a public housing agency with more than 250 units as troubled pursuant to subparagraph (A) and determining that an assessment under this subparagraph will not duplicate any comparable and recent review, the Secretary shall provide for an on-site, independent assessment of the management of the agency.
(ii) To the extent the Secretary deems appropriate (taking into account an agency’s performance under the indicators specified under paragraph (1)), the assessment team shall also consider issues relating to the agency’s resident population and physical inventory, including the extent to which (I) the agency’s comprehensive plan prepared pursuant to section 1437l 4 of this title adequately and appropriately addresses the rehabilitation needs of the agency’s inventory, (II) residents of the agency are involved in and informed of significant management decisions, and (III) any projects in the agency’s inventory are severely distressed and eligible for assistance pursuant to section 1437v of this title.
(iii) An independent assessment under this subparagraph shall be carried out by a team of knowledgeable individuals selected by the Secretary (referred to in this section as the “assessment team”) with expertise in public housing and real estate management. In conducting an assessment, the assessment team shall consult with the residents and with public and private entities in the jurisdiction in which the public housing is located. The assessment team shall provide to the Secretary and the public housing agency a written report, which shall contain, at a minimum, recommendations for such management improvements as are necessary to eliminate or substantially remedy existing deficiencies.
(C) The Secretary shall seek to enter into an agreement with each troubled public housing agency, after reviewing the report submitted pursuant to subparagraph (B) (if applicable) and consulting with the agency’s assessment team. Such agreement shall set forth—
(i) targets for improving performance as measured by the performance indicators specified under paragraph (1) and other requirements within a specified period of time;
(ii) strategies for meeting such targets, including a description of the technical assistance that the Secretary will make available to the agency; and
(iii) incentives or sanctions for effective implementation of such strategies, which may include any constraints on the use of funds that the Secretary determines are appropriate.
To the extent the Secretary deems appropriate (taking into account an agency’s performance under the indicators specified under paragraph (1)), such agreement shall also set forth a plan for enhancing resident involvement in the management of the public housing agency. The Secretary and the public housing agency shall, to the maximum extent practicable, seek the assistance of local public and private entities in carrying out the agreement.
(D) The Secretary shall apply the provisions of this paragraph to resident management corporations as well as public housing agencies.
(3)
(A) Notwithstanding any other provision of law or of any contract for contributions, upon the occurrence of events or conditions that constitute a substantial default by a public housing agency with respect to the covenants or conditions to which the public housing agency is subject or an agreement entered into under paragraph (2), the Secretary may—
(i) solicit competitive proposals from other public housing agencies and private housing management agents which (I) in the discretion of the Secretary, may be selected by existing public housing residents through administrative procedures established by the Secretary, and (II) if appropriate, shall provide for such agents to manage all, or part, of the housing administered by the public housing agency or all or part of the other programs of the agency;
(ii) petition for the appointment of a receiver (which may be another public housing agency or a private management corporation) of the public housing agency to any district court of the United States or to any court of the State in which the real property of the public housing agency is situated, that is authorized to appoint a receiver for the purposes and having the powers prescribed in this subsection;
(iii) solicit competitive proposals from other public housing agencies and private entities with experience in construction management in the eventuality that such agencies or firms may be needed to oversee implementation of assistance made available from the Capital Fund under section 1437g(d) of this title for the housing; and 5
5 So in original. The word “and” probably should not appear.
(iv) take possession of all or part of the public housing agency, including all or part of any project or program of the agency, including any project or program under any other provision of this subchapter; and
(v) require the agency to make other arrangements acceptable to the Secretary and in the best interests of the public housing residents and families assisted under section 1437f of this title for managing all, or part, of the public housing administered by the agency or of the programs of the agency.
Residents of a public housing agency designated as troubled pursuant to paragraph (2)(A) may petition the Secretary in writing to take 1 or more of the actions referred to in this subparagraph. The Secretary shall respond to such petitions in a timely manner with a written description of the actions, if any, the Secretary plans to take and, where applicable, the reasons why such actions differ from the course proposed by the residents.
(B)
(i) If a public housing agency is identified as troubled under this subsection, the Secretary shall notify the agency of the troubled status of the agency.
(ii)(I) Upon the expiration of the 1-year period beginning on the later of the date on which the agency receives initial notice from the Secretary of the troubled status of the agency under clause (i) and October 21, 1998, the agency shall improve its performance, as measured by the performance indicators established pursuant to paragraph (1), by at least 50 percent of the difference between the most recent performance measurement and the measurement necessary to remove that agency’s designation as troubled.(II) Upon the expiration of the 2-year period beginning on the later of the date on which the agency receives initial notice from the Secretary of the troubled status of the agency under clause (i) and October 21, 1998, the agency shall improve its performance, as measured by the performance indicators established pursuant to paragraph (1), such that the agency is no longer designated as troubled.(III) In the event that a public housing agency designated as troubled under this subsection fails to comply with the requirements set forth in subclause (I) or (II), the Secretary shall—(aa) in the case of a troubled public housing agency with 1,250 or more units, petition for the appointment of a receiver pursuant to subparagraph (A)(ii); or(bb) in the case of a troubled public housing agency with fewer than 1,250 units, either petition for the appointment of a receiver pursuant to subparagraph (A)(ii), or take possession of the public housing agency (including all or part of any project or program of the agency) pursuant to subparagraph (A)(iv) and appoint, on a competitive or noncompetitive basis, an individual or entity as an administrative receiver to assume the responsibilities of the Secretary for the administration of all or part of the public housing agency (including all or part of any project or program of the agency).(IV) During the period between the date on which a petition is filed under subclause (III)(aa) and the date on which a receiver assumes responsibility for the management of the public housing agency under such subclause, the Secretary may take possession of the public housing agency (including all or part of any project or program of the agency) pursuant to subparagraph (A)(iv) and may appoint, on a competitive or noncompetitive basis, an individual or entity as an administrative receiver to assume the responsibilities of the Secretary for the administration of all or part of the public housing agency (including all or part of any project or program of the agency).
This subparagraph shall not be construed to limit the courses of action available to the Secretary under subparagraph (A).
(C) If a receiver is appointed pursuant to subparagraph (A)(ii), in addition to the powers accorded by the court appointing the receiver, the receiver—
(i) may abrogate any contract to which the United States or an agency of the United States is not a party that, in the receiver’s written determination (which shall include the basis for such determination), substantially impedes correction of the substantial default, but only after the receiver determines that reasonable efforts to renegotiate such contract have failed;
(ii) may demolish and dispose of all or part of the assets of the public housing agency (including all or part of any project of the agency) in accordance with section 1437p of this title, including disposition by transfer of properties to resident-supported nonprofit entities;
(iii) if determined to be appropriate by the Secretary, may seek the establishment, as permitted by applicable State and local law, of 1 or more new public housing agencies;
(iv) if determined to be appropriate by the Secretary, may seek consolidation of all or part of the agency (including all or part of any project or program of the agency), as permitted by applicable State and local laws, into other well-managed public housing agencies with the consent of such well-managed agencies; and
(v) shall not be required to comply with any State or local law relating to civil service requirements, employee rights (except civil rights), procurement, or financial or administrative controls that, in the receiver’s written determination (which shall include the basis for such determination), substantially impedes correction of the substantial default.
(D)
(i) If, pursuant to subparagraph (A)(iv), the Secretary takes possession of all or part of the public housing agency, including all or part of any project or program of the agency, the Secretary—(I) may abrogate any contract to which the United States or an agency of the United States is not a party that, in the written determination of the Secretary (which shall include the basis for such determination), substantially impedes correction of the substantial default, but only after the Secretary determines that reasonable efforts to renegotiate such contract have failed;(II) may demolish and dispose of all or part of the assets of the public housing agency (including all or part of any project of the agency) in accordance with section 1437p of this title, including disposition by transfer of properties to resident-supported nonprofit entities;(III) may seek the establishment, as permitted by applicable State and local law, of 1 or more new public housing agencies;(IV) may seek consolidation of all or part of the agency (including all or part of any project or program of the agency), as permitted by applicable State and local laws, into other well-managed public housing agencies with the consent of such well-managed agencies;(V) shall not be required to comply with any State or local law relating to civil service requirements, employee rights (except civil rights), procurement, or financial or administrative controls that, in the Secretary’s written determination (which shall include the basis for such determination), substantially impedes correction of the substantial default; and(VI) shall, without any action by a district court of the United States, have such additional authority as a district court of the United States would have the authority to confer upon a receiver to achieve the purposes of the receivership.
(ii) If, pursuant to subparagraph (B)(ii)(III)(bb), the Secretary appoints an administrative receiver to assume the responsibilities of the Secretary for the administration of all or part of the public housing agency (including all or part of any project or program of the agency), the Secretary may delegate to the administrative receiver any or all of the powers given the Secretary by this subparagraph, as the Secretary determines to be appropriate and subject to clause (iii).
(iii) An administrative receiver may not take an action described in subclause (III) or (IV) of clause (i) unless the Secretary first approves an application by the administrative receiver to authorize such action.
(E) The Secretary may make available to receivers and other entities selected or appointed pursuant to this paragraph such assistance as the Secretary determines in the discretion of the Secretary is necessary and available to remedy the substantial deterioration of living conditions in individual public housing projects or other related emergencies that endanger the health, safety, and welfare of public housing residents or families assisted under section 1437f of this title. A decision made by the Secretary under this paragraph shall not be subject to review in any court of the United States, or in any court of any State, territory, or possession of the United States.
(F) In any proceeding under subparagraph (A)(ii), upon a determination that a substantial default has occurred and without regard to the availability of alternative remedies, the court shall appoint a receiver to conduct the affairs of all or part of the public housing agency in a manner consistent with this chapter and in accordance with such further terms and conditions as the court may provide. The receiver appointed may be another public housing agency, a private management corporation, or any other person or appropriate entity. The court shall have power to grant appropriate temporary or preliminary relief pending final disposition of the petition by the Secretary.
(G) The appointment of a receiver pursuant to this paragraph may be terminated, upon the petition of any party, when the court determines that all defaults have been cured or the public housing agency is capable again of discharging its duties.
(H) If the Secretary (or an administrative receiver appointed by the Secretary) takes possession of a public housing agency (including all or part of any project or program of the agency), or if a receiver is appointed by a court, the Secretary or receiver shall be deemed to be acting not in the official capacity of that person or entity, but rather in the capacity of the public housing agency, and any liability incurred, regardless of whether the incident giving rise to that liability occurred while the Secretary or receiver was in possession of all or part of the public housing agency (including all or part of any project or program of the agency), shall be the liability of the public housing agency.
(4)Sanctions for improper use of amounts.—
(A)In general.—In addition to any other actions authorized under this chapter, if the Secretary finds that a public housing agency receiving assistance amounts under section 1437g of this title for public housing has failed to comply substantially with any provision of this chapter relating to the public housing program, the Secretary may—
(i) terminate assistance payments under this 6
6 So in original. The word “this” probably should not appear.
section 1437g of this title to the agency;
(ii) withhold from the agency amounts from the total allocations for the agency pursuant to section 1437g of this title;
(iii) reduce the amount of future assistance payments under section 1437g of this title to the agency by an amount equal to the amount of such payments that were not expended in accordance with this chapter;
(iv) limit the availability of assistance amounts provided to the agency under section 1437g of this title to programs, projects, or activities not affected by such failure to comply;
(v) withhold from the agency amounts allocated for the agency under section 1437f of this title; or
(vi) order other corrective action with respect to the agency.
(B)Termination of compliance action.—If the Secretary takes action under subparagraph (A) with respect to a public housing agency, the Secretary shall—
(i) in the case of action under subparagraph (A)(i), resume payments of assistance amounts under section 1437g of this title to the agency in the full amount of the total allocations under section 1437g of this title for the agency at the time that the Secretary first determines that the agency will comply with the provisions of this chapter relating to the public housing program;
(ii) in the case of action under clause (ii) or (v) of subparagraph (A), make withheld amounts available as the Secretary considers appropriate to ensure that the agency complies with the provisions of this chapter relating to such program;
(iii) in the case of action under subparagraph (A)(iv), release such restrictions at the time that the Secretary first determines that the agency will comply with the provisions of this chapter relating to such program; or
(iv) in the case of action under subparagraph (vi), cease such action at the time that the Secretary first determines that the agency will comply with the provisions of this chapter relating to such program.
(5) The Secretary shall submit to the Congress annually, as a part of the report of the Secretary under section 3536 of this title, a report that—
(A) identifies the public housing agencies that have been designated as troubled under paragraph (2);
(B) describes the grounds on which such public housing agencies were designated as troubled and continue to be so designated;
(C) describes the agreements that have been entered into with such agencies under such paragraph;
(D) describes the status of progress under such agreements;
(E) describes any action that has been taken in accordance with paragraph (3), including an accounting of the authorized funds that have been expended to support such actions; and
(F) describes the status of any public housing agency designated as troubled with respect to the program for assistance from the Capital Fund under section 1437g(d) of this title and specifies the amount of assistance the agency received under such program.
(6)
(A) To the extent that the Secretary determines such action to be necessary in order to ensure the accuracy of any certification made under this section, the Secretary shall require an independent auditor to review documentation or other information maintained by a public housing agency pursuant to this section to substantiate each certification submitted by the agency or corporation relating to the performance of that agency or corporation.
(B) The Secretary may withhold, from assistance otherwise payable to the agency or corporation under section 1437g of this title, amounts sufficient to pay for the reasonable costs of any review under this paragraph.
(7) The Secretary shall apply the provisions of this subsection to resident management corporations in the same manner as applied to public housing agencies.
(k) Administrative grievance procedure regulations: grounds of adverse action, hearing, examination of documents, representation, evidence, decision; judicial hearing; eviction and termination proceduresThe Secretary shall by regulation require each public housing agency receiving assistance under this chapter to establish and implement an administrative grievance procedure under which tenants will—
(1) be advised of the specific grounds of any proposed adverse public housing agency action;
(2) have an opportunity for a hearing before an impartial party upon timely request within any period applicable under subsection (l);
(3) have an opportunity to examine any documents or records or regulations related to the proposed action;
(4) be entitled to be represented by another person of their choice at any hearing;
(5) be entitled to ask questions of witnesses and have others make statements on their behalf; and
(6) be entitled to receive a written decision by the public housing agency on the proposed action.
For any grievance concerning an eviction or termination of tenancy that involves any activity that threatens the health, safety, or right to peaceful enjoyment of the premises of other tenants or employees of the public housing agency or any violent or drug-related criminal activity on or off such premises, or any activity resulting in a felony conviction, the agency may (A) establish an expedited grievance procedure as the Secretary shall provide by rule under section 553 of title 5, or (B) exclude from its grievance procedure any such grievance, in any jurisdiction which requires that prior to eviction, a tenant be given a hearing in court which the Secretary determines provides the basic elements of due process (which the Secretary shall establish by rule under section 553 of title 5). Such elements of due process shall not include a requirement that the tenant be provided an opportunity to examine relevant documents within the possession of the public housing agency. The agency shall provide to the tenant a reasonable opportunity, prior to hearing or trial, to examine any relevant documents, records, or regulations directly related to the eviction or termination.
(l) Leases; terms and conditions; maintenance; terminationEach public housing agency shall utilize leases which—
(1) have a term of 12 months and shall be automatically renewed for all purposes except for noncompliance with the requirements under section 1437j(c) of this title (relating to community service requirements); except that nothing in this subchapter shall prevent a resident from seeking timely redress in court for failure to renew based on such noncompliance;
(2) do not contain unreasonable terms and conditions;
(3) obligate the public housing agency to maintain the project in a decent, safe, and sanitary condition;
(4) require the public housing agency to give adequate written notice of termination of the lease which shall not be less than—
(A) a reasonable period of time, but not to exceed 30 days—
(i) if the health or safety of other tenants, public housing agency employees, or persons residing in the immediate vicinity of the premises is threatened; or
(ii) in the event of any drug-related or violent criminal activity or any felony conviction;
(B) 14 days in the case of nonpayment of rent; and
(C) 30 days in any other case, except that if a State or local law provides for a shorter period of time, such shorter period shall apply;
(5) require that the public housing agency may not terminate the tenancy except for serious or repeated violation of the terms or conditions of the lease or for other good cause;
(6) provide that any criminal activity that threatens the health, safety, or right to peaceful enjoyment of the premises by other tenants or any drug-related criminal activity on or off such premises, engaged in by a public housing tenant, any member of the tenant’s household, or any guest or other person under the tenant’s control, shall be cause for termination of tenancy;
(7) specify that with respect to any notice of eviction or termination, notwithstanding any State law, a public housing tenant shall be informed of the opportunity, prior to any hearing or trial, to examine any relevant documents, records, or regulations directly related to the eviction or termination;
(7)7
7 So in original. Probably should be “(8)”.
provide that any occupancy in violation of section 13661(b) of this title (relating to ineligibility of illegal drug users and alcohol abusers) or the furnishing of any false or misleading information pursuant to section 13662 of this title (relating to termination of tenancy and assistance for illegal drug users and alcohol abusers) shall be cause for termination of tenancy; 8
8 So in original. Probably should be followed by “and”.
(9) provide that it shall be cause for immediate termination of the tenancy of a public housing tenant if such tenant—
(A) is fleeing to avoid prosecution, or custody or confinement after conviction, under the laws of the place from which the individual flees, for a crime, or attempt to commit a crime, which is a felony under the laws of the place from which the individual flees, or which, in the case of the State of New Jersey, is a high misdemeanor under the laws of such State; or
(2)9
9 So in original. Probably should be “(B)”.
is violating a condition of probation or parole imposed under Federal or State law.
For purposes of paragraph (5),4 the term “drug-related criminal activity” means the illegal manufacture, sale, distribution, use, or possession with intent to manufacture, sell, distribute, or use, of a controlled substance (as defined in section 802 of title 21).
(m) Reporting requirements; limitation
(n) Notice to post office regarding eviction for criminal activity
(o) Public housing assistance for foster care childrenIn providing housing in low-income housing projects, each public housing agency may coordinate with any local public agencies involved in providing for the welfare of children to make available dwelling units to—
(1) families identified by the agencies as having a lack of adequate housing that is a primary factor—
(A) in the imminent placement of a child in foster care; or
(B) in preventing the discharge of a child from foster care and reunification with his or her family; and
(2) youth, upon discharge from foster care, in cases in which return to the family or extended family or adoption is not available.
(p) Repealed. Pub. L. 105–276, title V, § 519(b), Oct. 21, 1998, 112 Stat. 2561
(q) Availability of records
(1) In general
(A) Provision of information
(B) Requests by owners of project-based section 8 [42 U.S.C. 1437f] housing
(C) Exception
(2) Opportunity to dispute
(3) Fees
(4) Records managementEach public housing agency shall establish and implement a system of records management that ensures that any criminal record received by the public housing agency is—
(A) maintained confidentially;
(B) not misused or improperly disseminated; and
(C) destroyed, once the purpose for which the record was requested has been accomplished.
(5) Confidentiality
(6) Penalty
(7) Civil action
(8) DefinitionsFor purposes of this subsection, the following definitions shall apply:
(A) Adult
(B) Covered housing assistanceThe term “covered housing assistance” means—
(i) a dwelling unit in public housing;
(ii) a dwelling unit in housing that is provided project-based assistance under section 1437f of this title, including new construction and substantial rehabilitation projects; and
(iii) tenant-based assistance under section 1437f of this title.
(C) Owner
(r) Site-based waiting lists
(1) Authority
(2) Notice
(s) Authority to require access to criminal records
(t) Obtaining information from drug abuse treatment facilities
(1) Authority
(2) Confidentiality of applicant’s records
(A) Limitation on information requested
(B) Records managementEach public housing agency that receives information under this subsection from a drug abuse treatment facility shall establish and implement a system of records management that ensures that any information received by the public housing agency under this subsection—
(i) is maintained confidentially in accordance with section 543 of the Public Health Service Act [42 U.S.C. 290dd–2];
(ii) is not misused or improperly disseminated; and
(iii) is destroyed, as applicable—(I) not later than 5 business days after the date on which the public housing agency gives final approval for an application for admission; or(II) if the public housing agency denies the application for admission, in a timely manner after the date on which the statute of limitations for the commencement of a civil action from the applicant based upon that denial of admission has expired.
(C) Expiration of written consent
(3) Prohibition of discriminatory treatment of applicants
(A) Forms signed
(B) Circumstances of inquiryA public housing agency may only make an inquiry to a drug abuse treatment facility under this subsection if—
(i) the public housing agency makes the same inquiry with respect to all applicants; or
(ii) the public housing agency only makes the same inquiry with respect to each and every applicant with respect to whom—(I) the public housing agency receives information from the criminal record of the applicant that indicates evidence of a prior arrest or conviction; or(II) the public housing agency receives information from the records of prior tenancy of the applicant that demonstrates that the applicant—(aa) engaged in the destruction of property;(bb) engaged in violent activity against another person; or(cc) interfered with the right of peaceful enjoyment of the premises of another tenant.
(4) Fee permitted
(5) Disclosure permitted by treatment facilities
(6) Option to not request information
(7) DefinitionsFor purposes of this subsection, the following definitions shall apply:
(A) Drug abuse treatment facilityThe term “drug abuse treatment facility” means an entity that—
(i) is—(I) an identified unit within a general medical care facility; or(II) an entity other than a general medical care facility; and
(ii) holds itself out as providing, and provides, diagnosis, treatment, or referral for treatment with respect to the illegal use of a controlled substance.
(B) Controlled substance
(C) Currently engaging in the illegal use of a controlled substance
(8) Effective date
(Sept. 1, 1937, ch. 896, title I, § 6, as added Pub. L. 93–383, title II, § 201(a), Aug. 22, 1974, 88 Stat. 659; amended Pub. L. 96–153, title II, § 206(a), Dec. 21, 1979, 93 Stat. 1108; Pub. L. 96–399, title II, §§ 201(c), (e), 202(c), Oct. 8, 1980, 94 Stat. 1625, 1629; Pub. L. 97–35, title III, § 322(c), (d), Aug. 13, 1981, 95 Stat. 402; Pub. L. 98–181, title I [title II, §§ 201(c), 203(a), 204, 205, 214(b)], Nov. 30, 1983, 97 Stat. 1177–1179, 1185; Pub. L. 98–479, title I, § 102(b)(4), (5), title II, § 204(b)(1), Oct. 17, 1984, 98 Stat. 2221, 2233; Pub. L. 99–160, title I, § 101, Nov. 25, 1985, 99 Stat. 910; Pub. L. 100–242, title I, §§ 112(b)(2), 116, 170(d), Feb. 5, 1988, 101 Stat. 1824, 1826, 1867; renumbered title I, Pub. L. 100–358, § 5, June 29, 1988, 102 Stat. 681; Pub. L. 100–628, title X, §§ 1001(b), 1014(a)(1), Nov. 7, 1988, 102 Stat. 3263, 3269; Pub. L. 100–690, title V, § 5101, Nov. 18, 1988, 102 Stat. 4300; Pub. L. 101–144, title II, Nov. 9, 1989, 103 Stat. 846; Pub. L. 101–625, title V, §§ 501, 502(a), (c)(1), 503(a), (b), 504–506, 572, Nov. 28, 1990, 104 Stat. 4180, 4181, 4183–4185, 4236; Pub. L. 102–139, title II, Oct. 28, 1991, 105 Stat. 756, 757; Pub. L. 102–550, title I, §§ 112, 113, title VI, §§ 622(b), 625(a)(2), 682(a), Oct. 28, 1992, 106 Stat. 3689, 3817, 3820, 3830; Pub. L. 103–233, title I, § 101(c)(1), title III, § 303, Apr. 11, 1994, 108 Stat. 357, 370; Pub. L. 103–327, title II, Sept. 28, 1994, 108 Stat. 2315; Pub. L. 104–99, title IV, § 402(d)(1), (6)(A)(i), Jan. 26, 1996, 110 Stat. 41, 42; Pub. L. 104–120, § 9(a)–(c), Mar. 28, 1996, 110 Stat. 836, 837; Pub. L. 104–193, title IX, § 903(a)(1), Aug. 22, 1996, 110 Stat. 2348; Pub. L. 104–330, title V, § 501(b)(3), Oct. 26, 1996, 110 Stat. 4042; Pub. L. 105–276, title V, §§ 511(d), 512(b), 514(a)(1), (2)(A), 519(b), 520(b), 521, 525, 529, 530, 564, 565(a), 575, 576(d)(1), Oct. 21, 1998, 112 Stat. 2539, 2543, 2547, 2561, 2563, 2568, 2569, 2627, 2628, 2634, 2640; Pub. L. 109–162, title VI, § 607, Jan. 5, 2006, 119 Stat. 3048; Pub. L. 109–271, § 5(f), Aug. 12, 2006, 120 Stat. 761; Pub. L. 113–4, title VI, § 601(b)(1), Mar. 7, 2013, 127 Stat. 107.)

CITE AS: 42 USC 1437d

§ 1437e. Designated housing for elderly and disabled families
(a) Authority to provide designated housing
(1) In general
(2) Priority for occupancy
(3) Eligibility of near-elderly families
(b) Standards regarding evictions
(c) Relocation assistanceA public housing agency that designates any existing project or building, or portion thereof, for occupancy as provided under subsection (a)(1) shall provide, to each person and family who agrees to be relocated in connection with such designation—
(1) notice of the designation and an explanation of available relocation benefits, as soon as is practicable for the agency and the person or family;
(2) access to comparable housing (including appropriate services and design features), which may include tenant-based rental assistance under section 1437f of this title, at a rental rate paid by the tenant that is comparable to that applicable to the unit from which the person or family has vacated; and
(3) payment of actual, reasonable moving expenses.
(d) Required planA plan under this subsection for designating a project (or portion of a project) for occupancy under subsection (a)(1) is a plan, prepared by the public housing agency for the project and submitted to the Secretary, that—
(1) establishes that the designation of the project is necessary—
(A) to achieve the housing goals for the jurisdiction under the comprehensive housing affordability strategy under section 12705 of this title; and
(B) to meet the housing needs of the low-income population of the jurisdiction; and
(2) includes a description of—
(A) the project (or portion of a project) to be designated;
(B) the types of tenants for which the project is to be designated;
(C) any supportive services to be provided to tenants of the designated project (or portion);
(D) how the design and related facilities (as such term is defined in section 1701q(d)(8) 1 of title 12) of the project accommodate the special environmental needs of the intended occupants; and
(E) any plans to secure additional resources or housing assistance to provide assistance to families that may have been housed if occupancy in the project were not restricted pursuant to this section.
For purposes of this subsection, the term “supportive services” means services designed to meet the special needs of residents.
(e) Review of plans
(1) Review and notification
(2) Notice of reasons for determination of noncompliance
(3) Standards for determination of noncomplianceThe Secretary may determine that a plan does not comply with the requirements under subsection (d) only if—
(A) the plan is incomplete in significant matters required under such subsection; or
(B) there is evidence available to the Secretary that challenges, in a substantial manner, any information provided in the plan.
(4) Treatment of existing plans
(f) Effectiveness
(1) 5-year effectiveness of original plan
(2) Renewal of plan
(3) Transition provision
(g) Inapplicability of Uniform Relocation Assistance and Real Property Acquisitions Policy Act of 1970
(Sept. 1, 1937, ch. 896, title I, § 7, as added Pub. L. 93–383, title II, § 201(a), Aug. 22, 1974, 88 Stat. 662; amended Pub. L. 95–557, title IV, § 412, Oct. 31, 1978, 92 Stat. 2110; Pub. L. 100–242, title I, § 112(b)(3), Feb. 5, 1988, 101 Stat. 1824; renumbered title I, Pub. L. 100–358, § 5, June 29, 1988, 102 Stat. 681; amended Pub. L. 102–550, title VI, § 622(a), Oct. 28, 1992, 106 Stat. 3813; Pub. L. 104–99, title IV, § 402(d)(6)(A)(ii), Jan. 26, 1996, 110 Stat. 42; Pub. L. 104–120, § 10(a), Mar. 28, 1996, 110 Stat. 838; Pub. L. 104–330, title V, § 501(b)(4), Oct. 26, 1996, 110 Stat. 4042; Pub. L. 105–276, title V, § 595(d), Oct. 21, 1998, 112 Stat. 2656.)

CITE AS: 42 USC 1437e

§ 1437f. Low-income housing assistance
(a) Authorization for assistance payments
(b) Other existing housing programs
(1)In general.—The Secretary is authorized to enter into annual contributions contracts with public housing agencies pursuant to which such agencies may enter into contracts to make assistance payments to owners of existing dwelling units in accordance with this section. In areas where no public housing agency has been organized or where the Secretary determines that a public housing agency is unable to implement the provisions of this section, the Secretary is authorized to enter into such contracts and to perform the other functions assigned to a public housing agency by this section.
(2) The Secretary is authorized to enter into annual contributions contracts with public housing agencies for the purpose of replacing public housing transferred in accordance with subchapter II–A of this chapter. Each contract entered into under this subsection shall be for a term of not more than 60 months.
(c) Contents and purposes of contracts for assistance payments; amount and scope of monthly assistance payments
(1)
(A) An assistance contract entered into pursuant to this section shall establish the maximum monthly rent (including utilities and all maintenance and management charges) which the owner is entitled to receive for each dwelling unit with respect to which such assistance payments are to be made. The maximum monthly rent shall not exceed by more than 10 per centum the fair market rental established by the Secretary periodically but not less than annually for existing or newly constructed rental dwelling units of various sizes and types in the market area suitable for occupancy by persons assisted under this section, except that the maximum monthly rent may exceed the fair market rental (A) by more than 10 but not more than 20 per centum where the Secretary determines that special circumstances warrant such higher maximum rent or that such higher rent is necessary to the implementation of a housing strategy as defined in section 12705 of this title, or (B) by such higher amount as may be requested by a tenant and approved by the public housing agency in accordance with paragraph (3)(B). In the case of newly constructed and substantially rehabilitated units, the exception in the preceding sentence shall not apply to more than 20 per centum of the total amount of authority to enter into annual contributions contracts for such units which is allocated to an area and obligated with respect to any fiscal year beginning on or after October 1, 1980. Each fair market rental in effect under this subsection shall be adjusted to be effective on October 1 of each year to reflect changes, based on the most recent available data trended so the rentals will be current for the year to which they apply, of rents for existing or newly constructed rental dwelling units, as the case may be, of various sizes and types in the market area suitable for occupancy by persons assisted under this section. Notwithstanding any other provision of this section, after October 12, 1977, the Secretary shall prohibit high-rise elevator projects for families with children unless there is no practical alternative. If units assisted under this section are exempt from local rent control while they are so assisted or otherwise, the maximum monthly rent for such units shall be reasonable in comparison with other units in the market area that are exempt from local rent control.
(B) Fair market rentals for an area shall be published not less than annually by the Secretary on the site of the Department on the World Wide Web and in any other manner specified by the Secretary. Notice that such fair market rentals are being published shall be published in the Federal Register, and such fair market rentals shall become effective no earlier than 30 days after the date of such publication. The Secretary shall establish a procedure for public housing agencies and other interested parties to comment on such fair market rentals and to request, within a time specified by the Secretary, reevaluation of the fair market rentals in a jurisdiction before such rentals become effective. The Secretary shall cause to be published for comment in the Federal Register notices of proposed material changes in the methodology for estimating fair market rentals and notices specifying the final decisions regarding such proposed substantial methodological changes and responses to public comments.
(2)
(A) The assistance contract shall provide for adjustment annually or more frequently in the maximum monthly rents for units covered by the contract to reflect changes in the fair market rentals established in the housing area for similar types and sizes of dwelling units or, if the Secretary determines, on the basis of a reasonable formula. However, where the maximum monthly rent, for a unit in a new construction, substantial rehabilitation, or moderate rehabilitation project, to be adjusted using an annual adjustment factor exceeds the fair market rental for an existing dwelling unit in the market area, the Secretary shall adjust the rent only to the extent that the owner demonstrates that the adjusted rent would not exceed the rent for an unassisted unit of similar quality, type, and age in the same market area, as determined by the Secretary. The immediately foregoing sentence shall be effective only during fiscal year 1995, fiscal year 1996 prior to April 26, 1996, and fiscal years 1997 and 1998, and during fiscal year 1999 and thereafter. Except for assistance under the certificate program, for any unit occupied by the same family at the time of the last annual rental adjustment, where the assistance contract provides for the adjustment of the maximum monthly rent by applying an annual adjustment factor and where the rent for a unit is otherwise eligible for an adjustment based on the full amount of the factor, 0.01 shall be subtracted from the amount of the factor, except that the factor shall not be reduced to less than 1.0. In the case of assistance under the certificate program, 0.01 shall be subtracted from the amount of the annual adjustment factor (except that the factor shall not be reduced to less than 1.0), and the adjusted rent shall not exceed the rent for a comparable unassisted unit of similar quality, type, and age in the market area. The immediately foregoing two sentences shall be effective only during fiscal year 1995, fiscal year 1996 prior to April 26, 1996, and fiscal years 1997 and 1998, and during fiscal year 1999 and thereafter. In establishing annual adjustment factors for units in new construction and substantial rehabilitation projects, the Secretary shall take into account the fact that debt service is a fixed expense. The immediately foregoing sentence shall be effective only during fiscal year 1998.
(B) The contract shall further provide for the Secretary to make additional adjustments in the maximum monthly rent for units under contract to the extent he determines such adjustments are necessary to reflect increases in the actual and necessary expenses of owning and maintaining the units which have resulted from substantial general increases in real property taxes, utility rates, or similar costs which are not adequately compensated for by the adjustment in the maximum monthly rent authorized by subparagraph (A). The Secretary shall make additional adjustments in the maximum monthly rent for units under contract (subject to the availability of appropriations for contract amendments) to the extent the Secretary determines such adjustments are necessary to reflect increases in the actual and necessary expenses of owning and maintaining the units that have resulted from the expiration of a real property tax exemption. Where the Secretary determines that a project assisted under this section is located in a community where drug-related criminal activity is generally prevalent and the project’s operating, maintenance, and capital repair expenses have been substantially increased primarily as a result of the prevalence of such drug-related activity, the Secretary may (at the discretion of the Secretary and subject to the availability of appropriations for contract amendments for this purpose), on a project by project basis, provide adjustments to the maximum monthly rents, to a level no greater than 120 percent of the project rents, to cover the costs of maintenance, security, capital repairs, and reserves required for the owner to carry out a strategy acceptable to the Secretary for addressing the problem of drug-related criminal activity. Any rent comparability standard required under this paragraph may be waived by the Secretary to so implement the preceding sentence. The Secretary may (at the discretion of the Secretary and subject to the availability of appropriations for contract amendments), on a project by project basis for projects receiving project-based assistance, provide adjustments to the maximum monthly rents to cover the costs of evaluating and reducing lead-based paint hazards, as defined in section 4851b of this title.
(C) Adjustments in the maximum rents under subparagraphs (A) and (B) shall not result in material differences between the rents charged for assisted units and unassisted units of similar quality, type, and age in the same market area, as determined by the Secretary. In implementing the limitation established under the preceding sentence, the Secretary shall establish regulations for conducting comparability studies for projects where the Secretary has reason to believe that the application of the formula adjustments under subparagraph (A) would result in such material differences. The Secretary shall conduct such studies upon the request of any owner of any project, or as the Secretary determines to be appropriate by establishing, to the extent practicable, a modified annual adjustment factor for such market area, as the Secretary shall designate, that is geographically smaller than the applicable housing area used for the establishment of the annual adjustment factor under subparagraph (A). The Secretary shall establish such modified annual adjustment factor on the basis of the results of a study conducted by the Secretary of the rents charged, and any change in such rents over the previous year, for assisted units and unassisted units of similar quality, type, and age in the smaller market area. Where the Secretary determines that such modified annual adjustment factor cannot be established or that such factor when applied to a particular project would result in material differences between the rents charged for assisted units and unassisted units of similar quality, type, and age in the same market area, the Secretary may apply an alternative methodology for conducting comparability studies in order to establish rents that are not materially different from rents charged for comparable unassisted units. If the Secretary or appropriate State agency does not complete and submit to the project owner a comparability study not later than 60 days before the anniversary date of the assistance contract under this section, the automatic annual adjustment factor shall be applied. The Secretary may not reduce the contract rents in effect on or after April 15, 1987, for newly constructed, substantially rehabilitated, or moderately rehabilitated projects assisted under this section (including projects assisted under this section as in effect prior to November 30, 1983), unless the project has been refinanced in a manner that reduces the periodic payments of the owner. Any maximum monthly rent that has been reduced by the Secretary after April 14, 1987, and prior to November 7, 1988, shall be restored to the maximum monthly rent in effect on April 15, 1987. For any project which has had its maximum monthly rents reduced after April 14, 1987, the Secretary shall make assistance payments (from amounts reserved for the original contract) to the owner of such project in an amount equal to the difference between the maximum monthly rents in effect on April 15, 1987, and the reduced maximum monthly rents, multiplied by the number of months that the reduced maximum monthly rents were in effect.
(3) The amount of the monthly assistance payment with respect to any dwelling unit shall be the difference between the maximum monthly rent which the contract provides that the owner is to receive for the unit and the rent the family is required to pay under section 1437a(a) of this title.
(4) The assistance contract shall provide that assistance payments may be made only with respect to a dwelling unit under lease for occupancy by a family determined to be a lower income family at the time it initially occupied such dwelling unit, except that such payments may be made with respect to unoccupied units for a period not exceeding sixty days (A) in the event that a family vacates a dwelling unit before the expiration date of the lease for occupancy or (B) where a good faith effort is being made to fill an unoccupied unit, and, subject to the provisions of the following sentence, such payments may be made, in the case of a newly constructed or substantially rehabilitated proj­ect, after such sixty-day period in an amount equal to the debt service attributable to such an unoccupied dwelling unit for a period not to exceed one year, if a good faith effort is being made to fill the unit and the unit provides decent, safe, and sanitary housing. No such payment may be made after such sixty-day period if the Secretary determines that the dwelling unit is in a project which provides the owner with revenues exceeding the costs incurred by such owner with respect to such project.
(5) The Secretary shall take such steps as may be necessary, including the making of contracts for assistance payments in amounts in excess of the amounts required at the time of the initial renting of dwelling units, the reservation of annual contributions authority for the purpose of amending housing assistance contracts, or the allocation of a portion of new authorizations for the purpose of amending housing assistance contracts, to assure that assistance payments are increased on a timely basis to cover increases in maximum monthly rents or decreases in family incomes.
(6) Redesignated (5).
(7) Repealed. Pub. L. 105–276, title V, § 550(a)(3)(C), Oct. 21, 1998, 112 Stat. 2609
(8)
(A) Not less than one year before termination of any contract under which assistance payments are received under this section, other than a contract for tenant-based assistance under this section, an owner shall provide written notice to the Secretary and the tenants involved of the proposed termination. The notice shall also include a statement that, if the Congress makes funds available, the owner and the Secretary may agree to a renewal of the contract, thus avoiding termination, and that in the event of termination the Department of Housing and Urban Development will provide tenant-based rental assistance to all eligible residents, enabling them to choose the place they wish to rent, which is likely to include the dwelling unit in which they currently reside. Any contract covered by this paragraph that is renewed may be renewed for a period of up to 1 year or any number or years, with payments subject to the availability of appropriations for any year.
(B) In the event the owner does not provide the notice required, the owner may not evict the tenants or increase the tenants’ rent payment until such time as the owner has provided the notice and 1 year has elapsed. The Secretary may allow the owner to renew the terminating contract for a period of time sufficient to give tenants 1 year of advance notice under such terms and conditions as the Secretary may require.
(C) Any notice under this paragraph shall also comply with any additional requirements established by the Secretary.
(D) For purposes of this paragraph, the term “termination” means the expiration of the assistance contract or an owner’s refusal to renew the assistance contract, and such term shall include termination of the contract for business reasons.
(d) Required provisions and duration of contracts for assistance payments; waiver of limitation
(1) Contracts to make assistance payments entered into by a public housing agency with an owner of existing housing units shall provide (with respect to any unit) that—
(A) the selection of tenants shall be the function of the owner, subject to the annual contributions contract between the Secretary and the agency, except that with respect to the certificate and moderate rehabilitation programs only, for the purpose of selecting families to be assisted, the public housing agency may establish local preferences, consistent with the public housing agency plan submitted under section 1437c–1 of this title by the public housing agency;
(B)
(i) the lease between the tenant and the owner shall be for at least one year or the term of such contract, whichever is shorter, and shall contain other terms and conditions specified by the Secretary;
(ii) during the term of the lease, the owner shall not terminate the tenancy except for serious or repeated violation of the terms and conditions of the lease, for violation of applicable Federal, State, or local law, or for other good cause;
(iii) during the term of the lease, any criminal activity that threatens the health, safety, or right to peaceful enjoyment of the premises by other tenants, any criminal activity that threatens the health, safety, or right to peaceful enjoyment of their residences by persons residing in the immediate vicinity of the premises, or any drug-related criminal activity on or near such premises, engaged in by a tenant of any unit, any member of the tenant’s household, or any guest or other person under the tenant’s control, shall be cause for termination of tenancy;
(iv) any termination of tenancy shall be preceded by the owner’s provision of written notice to the tenant specifying the grounds for such action; and
(v) it shall be cause for termination of the tenancy of a tenant if such tenant—(I) is fleeing to avoid prosecution, or custody or confinement after conviction, under the laws of the place from which the individual flees, for a crime, or attempt to commit a crime, which is a felony under the laws of the place from which the individual flees, or which, in the case of the State of New Jersey, is a high misdemeanor under the laws of such State; or(II) is violating a condition of probation or parole imposed under Federal or State law;
(C) maintenance and replacement (including redecoration) shall be in accordance with the standard practice for the building concerned as established by the owner and agreed to by the agency; and
(D) the agency and the owner shall carry out such other appropriate terms and conditions as may be mutually agreed to by them.
(2)
(A) Each contract for an existing structure entered into under this section shall be for a term of not less than one month nor more than one hundred and eighty months. The Secretary shall permit public housing agencies to enter into contracts for assistance payments of less than 12 months duration in order to avoid disruption in assistance to eligible families if the annual contributions contract is within 1 year of its expiration date.
(B)
(i) In determining the amount of assistance provided under an assistance contract for project-based assistance under this paragraph or a contract for assistance for housing constructed or substantially rehabilitated pursuant to assistance provided under subsection (b)(2) of this section (as such subsection existed immediately before October 1, 1983), the Secretary may consider and annually adjust, with respect to such project, for the cost of employing or otherwise retaining the services of one or more service coordinators under section 661 1
1 So in original. Probably should be section “671”.
of the Housing and Community Development Act of 1992 [42 U.S.C. 13631] to coordinate the provision of any services within the project for residents of the project who are elderly or disabled families.
(ii) The budget authority available under section 1437c(c) of this title for assistance under this section is authorized to be increased by $15,000,000 on or after October 1, 1992, and by $15,000,000 on or after October 1, 1993. Amounts made available under this subparagraph shall be used to provide additional amounts under annual contributions contracts for assistance under this section which shall be made available through assistance contracts only for the purpose of providing service coordinators under clause (i) for projects receiving project-based assistance under this paragraph and to provide additional amounts under contracts for assistance for projects constructed or substantially rehabilitated pursuant to assistance provided under subsection (b)(2) of this section (as such subsection existed immediately before October 1, 1983) only for such purpose.
(C) An assistance contract for project-based assistance under this paragraph shall provide that the owner shall ensure and maintain compliance with subtitle C of title VI of the Housing and Community Development Act of 1992 [42 U.S.C. 13601 et seq.] and any regulations issued under such subtitle.
(D) An owner of a covered section 8 [42 U.S.C. 1437f] housing project (as such term is defined in section 659 of the Housing and Community Development Act of 1992 [42 U.S.C. 13619]) may give preference for occupancy of dwelling units in the project, and reserve units for occupancy, in accordance with subtitle D of title VI of the Housing and Community Development Act of 1992 [42 U.S.C. 13611 et seq.].
(3) Notwithstanding any other provision of law, with the approval of the Secretary the public housing agency administering a contract under this section with respect to existing housing units may exercise all management and maintenance responsibilities with respect to those units pursuant to a contract between such agency and the owner of such units.
(4) A public housing agency that serves more than one unit of general local government may, at the discretion of the agency, in allocating assistance under this section, give priority to disabled families that are not elderly families.
(5)Calculation of limit.—Any contract entered into under section 514 of the Multifamily Assisted Housing Reform and Affordability Act of 1997 shall be excluded in computing the limit on project-based assistance under this subsection.
(6)Treatment of common areas.—The Secretary may not provide any assistance amounts pursuant to an existing contract for project-based assistance under this section for a housing project and may not enter into a new or renewal contract for such assistance for a project unless the owner of the project provides consent, to such local law enforcement agencies as the Secretary determines appropriate, for law enforcement officers of such agencies to enter common areas of the project at any time and without advance notice upon a determination of probable cause by such officers that criminal activity is taking place in such areas.
(e) Restrictions on contracts for assistance payments
(1) Nothing in this chapter shall be deemed to prohibit an owner from pledging, or offering as security for any loan or obligation, a contract for assistance payments entered into pursuant to this section: Provided, That such security is in connection with a project constructed or rehabilitated pursuant to authority granted in this section, and the terms of the financing or any refinancing have been approved by the Secretary.
(2) Repealed. Pub. L. 101–625, title II, § 289(b), Nov. 28, 1990, 104 Stat. 4128
(f) DefinitionsAs used in this section—
(1) the term “owner” means any private person or entity, including a cooperative, an agency of the Federal Government, or a public housing agency, having the legal right to lease or sublease dwelling units;
(2) the terms “rent” or “rental” mean, with respect to members of a cooperative, the charges under the occupancy agreements between such members and the cooperative;
(3) the term “debt service” means the required payments for principal and interest made with respect to a mortgage secured by housing assisted under this chapter;
(4) the term “participating jurisdiction” means a State or unit of general local government designated by the Secretary to be a participating jurisdiction under title II of the Cranston-Gonzalez National Affordable Housing Act [42 U.S.C. 12721 et seq.];
(5) the term “drug-related criminal activity” means the illegal manufacture, sale, distribution, use, or possession with intent to manufacture, sell, distribute, or use, of a controlled substance (as defined in section 802 of title 21);
(6) the term “project-based assistance” means rental assistance under subsection (b) that is attached to the structure pursuant to subsection (d)(2) or (o)(13); and
(7) the term “tenant-based assistance” means rental assistance under subsection (o) that is not project-based assistance and that provides for the eligible family to select suitable housing and to move to other suitable housing.
(g) Regulations applicable for implementation of assistance payments
(h) Nonapplicability of inconsistent provisions to contracts for assistance payments
(i) Receipt of assistance by public housing agency under other law not to be considered
(j) Carbon monoxide alarmsEach owner of a dwelling unit receiving project-based assistance under this section shall ensure that carbon monoxide alarms or detectors are installed in the dwelling unit in a manner that meets or exceeds—
(1) the standards described in chapters 9 and 11 of the 2018 publication of the International Fire Code, as published by the International Code Council; or
(2) any other standards as may be adopted by the Secretary, including any relevant updates to the International Fire Code, through a notice published in the Federal Register.
(k) Verification of income
(l) Qualifying smoke alarms
(1) In general
(2) DefinitionsFor purposes of this subsection, the following definitions shall apply:
(A) Smoke alarm defined
(B) Qualifying smoke alarm definedThe term “qualifying smoke alarm” means a smoke alarm that—
(i) in the case of a dwelling unit built before December 29, 2022, and not substantially rehabilitated after December 29, 2022—(I)(aa) is hardwired; or(bb) uses 10-year non rechargeable, nonreplaceable primary batteries and—(AA) is sealed;(BB) is tamper resistant; and(CC) contains silencing means; and(II) provides notification for persons with hearing loss as required by the National Fire Protection Association Standard 72, or any successor standard; or
(ii) in the case of a dwelling unit built or substantially rehabilitated after December 29, 2022, is hardwired.
(m) Repealed. Pub. L. 98–181, title I [title II, § 209(a)(5)], Nov. 30, 1983, 97 Stat. 1183
(n) Repealed. Pub. L. 105–276, title V, § 550(a)(7), Oct. 21, 1998, 112 Stat. 2609
(o) Voucher program
(1) Authority
(A) In general
(B) Establishment of payment standard
(C) Set-aside
(D) Approval
(E) ReviewThe Secretary—
(i) shall monitor rent burdens and review any payment standard that results in a significant percentage of the families occupying units of any size paying more than 30 percent of adjusted income for rent; and
(ii) may require a public housing agency to modify the payment standard of the public housing agency based on the results of that review.
(2) Amount of monthly assistance paymentSubject to the requirement under section 1437a(a)(3) of this title (relating to minimum rental amount), the monthly assistance payment for a family receiving assistance under this subsection shall be determined as follows:
(A) Tenant-based assistance; rent not exceeding payment standardFor a family receiving tenant-based assistance, if the rent for the family (including the amount allowed for tenant-paid utilities) does not exceed the applicable payment standard established under paragraph (1), the monthly assistance payment for the family shall be equal to the amount by which the rent (including the amount allowed for tenant-paid utilities) exceeds the greatest of the following amounts, rounded to the nearest dollar:
(i) 30 percent of the monthly adjusted income of the family.
(ii) 10 percent of the monthly income of the family.
(iii) If the family is receiving payments for welfare assistance from a public agency and a part of those payments, adjusted in accordance with the actual housing costs of the family, is specifically designated by that agency to meet the housing costs of the family, the portion of those payments that is so designated.
(B) Tenant-based assistance; rent exceeding payment standard
(C) Families receiving project-based assistance
(D) Utility allowance
(i) General
(ii) Exception for families in including persons with disabilities
(3) 40 percent limit
(4) Eligible familiesTo be eligible to receive assistance under this subsection, a family shall, at the time a family initially receives assistance under this subsection, be a low-income family that is—
(A) a very low-income family;
(B) a family previously assisted under this subchapter;
(C) a low-income family that meets eligibility criteria specified by the public housing agency;
(D) a family that qualifies to receive a voucher in connection with a homeownership program approved under title IV of the Cranston-Gonzalez National Affordable Housing Act; or
(E) a family that qualifies to receive a voucher under section 223 or 226 of the Low-Income Housing Preservation and Resident Homeownership Act of 1990 [12 U.S.C. 4113, 4116].
(5) Reviews of family income
(A) In general
(B) Procedures
(6) Selection of families and disapproval of owners
(A) Preferences
(i) Authority to establish
(ii) Content
(B) Selection of tenants
(C) PHA disapproval of ownersIn addition to other grounds authorized by the Secretary, a public housing agency may elect not to enter into a housing assistance payments contract under this subsection with an owner who refuses, or has a history of refusing, to take action to terminate tenancy for activity engaged in by the tenant, any member of the tenant’s household, any guest, or any other person under the control of any member of the household that—
(i) threatens the health or safety of, or right to peaceful enjoyment of the premises by, other tenants or employees of the public housing agency, owner, or other manager of the housing;
(ii) threatens the health or safety of, or right to peaceful enjoyment of the residences by, persons residing in the immediate vicinity of the premises; or
(iii) is drug-related or violent criminal activity.
(7) Leases and tenancyEach housing assistance payment contract entered into by the public housing agency and the owner of a dwelling unit—
(A) shall provide that the lease between the tenant and the owner shall be for a term of not less than 1 year, except that the public housing agency may approve a shorter term for an initial lease between the tenant and the dwelling unit owner if the public housing agency determines that such shorter term would improve housing opportunities for the tenant and if such shorter term is considered to be a prevailing local market practice;
(B) shall provide that the dwelling unit owner shall offer leases to tenants assisted under this subsection that—
(i) are in a standard form used in the locality by the dwelling unit owner; and
(ii) contain terms and conditions that—(I) are consistent with State and local law; and(II) apply generally to tenants in the property who are not assisted under this section;
(C) shall provide that during the term of the lease, the owner shall not terminate the tenancy except for serious or repeated violation of the terms and conditions of the lease, for violation of applicable Federal, State, or local law, or for other good cause, and in the case of an owner who is an immediate successor in interest pursuant to foreclosure during the term of the lease vacating the property prior to sale shall not constitute other good cause, except that the owner may terminate the tenancy effective on the date of transfer of the unit to the owner if the owner—
(i) will occupy the unit as a primary residence; and
(ii) has provided the tenant a notice to vacate at least 90 days before the effective date of such notice.; 3
3 So in original.
(D) shall provide that during the term of the lease, any criminal activity that threatens the health, safety, or right to peaceful enjoyment of the premises by other tenants, any criminal activity that threatens the health, safety, or right to peaceful enjoyment of their residences by persons residing in the immediate vicinity of the premises, or any violent or drug-related criminal activity on or near such premises, engaged in by a tenant of any unit, any member of the tenant’s household, or any guest or other person under the tenant’s control, shall be cause for termination of tenancy;
(E) shall provide that any termination of tenancy under this subsection shall be preceded by the provision of written notice by the owner to the tenant specifying the grounds for that action, and any relief shall be consistent with applicable State and local law; and
(F) may include any addenda required by the Secretary to set forth the provisions of this subsection. In the case of any foreclosure on any federally-related mortgage loan (as that term is defined in section 2602 of title 12) or on any residential real property in which a recipient of assistance under this subsection resides, the immediate successor in interest in such property pursuant to the foreclosure shall assume such interest subject to the lease between the prior owner and the tenant and to the housing assistance payments contract between the prior owner and the public housing agency for the occupied unit, except that this provision and the provisions related to foreclosure in subparagraph (C) shall not shall not 3 affect any State or local law that provides longer time periods or other additional protections for tenants.
(8) Inspection of units by PHAs
(A) Initial inspection
(i) In general
(ii) Correction of non-life-threatening conditions
(iii) Use of alternative inspection method for interim period
(B) Housing quality standardsThe housing quality standards under this subparagraph are standards for safe and habitable housing established—
(i) by the Secretary for purposes of this subsection; or
(ii) by local housing codes or by codes adopted by public housing agencies that—(I) meet or exceed housing quality standards, except that the Secretary may waive the requirement under this subclause to significantly increase access to affordable housing and to expand housing opportunities for families assisted under this subsection, except where such waiver could adversely affect the health or safety of families assisted under this subsection; and(II) do not severely restrict housing choice 4
4 So in original. Probably should be followed by a period.
(C) Inspection
(D) Biennial inspections
(i) Requirement
(ii) Use of alternative inspection method
(iii) Records
(iv) Mixed-finance properties
(E) Alternative inspection methodAn inspection of a property shall qualify as an alternative inspection method for purposes of this subparagraph if—
(i) the inspection was conducted pursuant to requirements under a Federal, State, or local housing program (including the Home investment partnership program under title II of the Cranston-Gonzalez National Affordable Housing Act [42 U.S.C. 12721 et seq.] and the low-income housing tax credit program under section 42 of title 26); and
(ii) pursuant to such inspection, the property was determined to meet the standards or requirements regarding housing quality or safety applicable to properties assisted under such program, and, if a non-Federal standard or requirement was used, the public housing agency has certified to the Secretary that such standard or requirement provides the same (or greater) protection to occupants of dwelling units meeting such standard or requirement as would the housing quality standards under subparagraph (B).
(F) Interim inspectionsUpon notification to the public housing agency, by a family (on whose behalf tenant-based rental assistance is provided under this subsection) or by a government official, that the dwelling unit for which such assistance is provided does not comply with the housing quality standards under subparagraph (B), the public housing agency shall inspect the dwelling unit—
(i) in the case of any condition that is life-threatening, within 24 hours after the agency’s receipt of such notification, unless waived by the Secretary in extraordinary circumstances; and
(ii) in the case of any condition that is not life-threatening, within a reasonable time frame, as determined by the Secretary.
(G) Enforcement of housing quality standards
(i) Determination of noncomplianceA dwelling unit that is covered by a housing assistance payments contract under this subsection shall be considered, for purposes of subparagraphs (D) and (F), to be in noncompliance with the housing quality standards under subparagraph (B) if—(I) the public housing agency or an inspector authorized by the State or unit of local government determines upon inspection of the unit that the unit fails to comply with such standards;(II) the agency or inspector notifies the owner of the unit in writing of such failure to comply; and(III) the failure to comply is not corrected—(aa) in the case of any such failure that is a result of life-threatening conditions, within 24 hours after such notice has been provided; and(bb) in the case of any such failure that is a result of non-life-threatening conditions, within 30 days after such notice has been provided or such other reasonable longer period as the public housing agency may establish.
(ii) Withholding of assistance amounts during correction
(iii) Abatement of assistance amounts
(iv) NotificationIf a public housing agency providing assistance under this subsection abates rental assistance payments pursuant to clause (iii) with respect to a dwelling unit, the agency shall, upon commencement of such abatement—(I) notify the tenant and the owner of the dwelling unit that—(aa) such abatement has commenced; and(bb) if the dwelling unit is not brought into compliance with housing quality standards within 60 days after the effective date of the determination of noncompliance under clause (i) or such reasonable longer period as the agency may establish, the tenant will have to move; and(II) issue the tenant the necessary forms to allow the tenant to move to another dwelling unit and transfer the rental assistance to that unit.
(v) Protection of tenants
(vi) Termination of lease or assistance payments contract
(vii) Relocation(I) Lease of new unit(II) Availability of public housing units(III) Assistance in finding unit
(viii) Tenant-caused damages
(ix) Applicability
(H) Inspection guidelines
(9) Vacated units
(10) Rent
(A) Reasonableness
(B) Negotiations
(C) Units exempt from local rent control
(D) Timely payments
(E) Penalties
(F) Tax credit projectsIn the case of a dwelling unit receiving tax credits pursuant to section 42 of title 26 or for which assistance is provided under subtitle A of title II of the Cranston Gonzalez 5
5 So in original. Probably should be “Cranston-Gonzalez”.
National Affordable Housing Act of 1990 [42 U.S.C. 12741
(i) comparison with rent for units in the private, unassisted local market shall not be required if the rent is equal to or less than the rent for other comparable units receiving such tax credits or assistance in the project that are not occupied by families assisted with tenant-based assistance under this subsection; and
(ii) the rent shall not be considered reasonable for purposes of this paragraph if it exceeds the greater of—(I) the rents charged for other comparable units receiving such tax credits or assistance in the project that are not occupied by families assisted with tenant-based assistance under this subsection; and(II) the payment standard established by the public housing agency for a unit of the size involved.
(11) Leasing of units owned by PHA
(A) Inspections and rent determinations
(B) Units owned by PHA
(12) Assistance for rental of manufactured housing
(A) In general
(B) Rent calculation
(i) Charges included
(ii) Monthly assistance payment
(13) PHA project-based assistance
(A) In general
(B) Percentage limitation
(i) In general
(ii) Exception
(C) Consistency with PHA plan and other goalsA public housing agency may approve a housing assistance payment contract pursuant to this paragraph only if the contract is consistent with—
(i) the public housing agency plan for the agency approved under section 1437c–1 of this title; and
(ii) the goal of deconcentrating poverty and expanding housing and economic opportunities.
(D) Income-mixing requirement
(i) In general
(ii) Exceptions(I) Certain families(II) Certain areas(III) Certain contracts(IV) Certain properties
(iii) Additional monitoring and oversight requirements
(E) Resident choice requirementA housing assistance payment contract pursuant to this paragraph shall provide as follows:
(i) Mobility
(ii) Continued assistance
(F) Contract term
(i) TermA housing assistance payment contract pursuant to this paragraph between a public housing agency and the owner of a project may have a term of up to 20 years, subject to—(I) the availability of sufficient appropriated funds for the purpose of renewing expiring contracts for assistance payments, as provided in appropriation Acts and in the agency’s annual contributions contract with the Secretary, provided that in the event of insufficient appropriated funds, payments due under contracts under this paragraph shall take priority if other cost-saving measures that do not require the termination of an existing contract are available to the agency; and(II) compliance with the inspection requirements under paragraph (8), except that the agency shall not be required to make biennial inspections of each assisted unit in the development.
(ii) Addition of eligible units
(iii) Housing under construction or recently constructed
(iv) Additional conditions
(G) Extension of contract term
(H) Rent calculation
(I) Rent adjustmentsA housing assistance payments contract pursuant to this paragraph entered into after July 29, 2016, shall provide for annual rent adjustments upon the request of the owner, except that—
(i) by agreement of the parties, a contract may allow a public housing agency to adjust the rent for covered units using an operating cost adjustment factor established by the Secretary pursuant to section 524(c) of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (which shall not result in a negative adjustment), in which case the contract may require an additional adjustment, if requested, up to the reasonable rent periodically during the term of the contract, and shall require such an adjustment, if requested, upon extension pursuant to subparagraph (G);
(ii) the adjusted rent shall not exceed the maximum rent permitted under subparagraph (H);
(iii) the contract may provide that the maximum rent permitted for a dwelling unit shall not be less than the initial rent for the dwelling unit under the initial housing assistance payments contract covering the units; and
(iv) the provisions of subsection (c)(2)(C) shall not apply.
(J) Tenant selection
(K) Vacated unitsNotwithstanding paragraph (9), a housing assistance payment contract pursuant to this paragraph may provide as follows:
(i) Payment for vacant units
(ii) Reduction of contract
Eligible applicants for assistance under this subsection may enforce provisions authorized by this subparagraph.
(L) Use in cooperative housing and elevator buildingsA public housing agency may enter into a housing assistance payments contract under this paragraph with respect to—
(i) dwelling units in cooperative housing; and
(ii) notwithstanding subsection (c), dwelling units in a high-rise elevator project, including such a project that is occupied by families with children, without review and approval of the contract by the Secretary.
(M) Reviews
(i) Subsidy layering
(ii) Environmental review
(N) Structure owned by agency
(O) Special purpose vouchers
(14) Inapplicability to tenant-based assistance
(15) Homeownership option
(A) In general
(B) Alternative administration
(16) Rental vouchers for relocation of witnesses and victims of crime
(A) Witnesses
(B) Victims of crime
(i) In general
(ii) Notice
(17) Deed restrictions
(18) Rental assistance for assisted living facilities
(A) In general
(B) Rent calculation
(i) Charges included
(ii) Payment standard
(iii) Monthly assistance payment
(C) Definition
(19) Rental vouchers for Veterans Affairs supported housing program
(A) Set aside
(B) AmountThe amount specified in this subparagraph is—
(i) for fiscal year 2007, the amount necessary to provide 500 vouchers for rental assistance under this subsection;
(ii) for fiscal year 2008, the amount necessary to provide 1,000 vouchers for rental assistance under this subsection;
(iii) for fiscal year 2009, the amount necessary to provide 1,500 vouchers for rental assistance under this subsection;
(iv) for fiscal year 2010, the amount necessary to provide 2,000 vouchers for rental assistance under this subsection; and
(v) for fiscal year 2011, the amount necessary to provide 2,500 vouchers for rental assistance under this subsection.
(C) Funding through incremental assistance
(D) Veteran defined
(20) Collection of utility data
(A) Publication
(B) Use of dataThe Secretary shall provide such data in a manner that—
(i) avoids unnecessary administrative burdens for public housing agencies and owners; and
(ii) protects families in various unit sizes and building types, and using various utilities, from high rent and utility cost burdens relative to income.
(21) Carbon monoxide alarmsEach dwelling unit receiving tenant-based assistance or project-based assistance under this subsection shall have carbon monoxide alarms or detectors installed in the dwelling unit in a manner that meets or exceeds—
(A) the standards described in chapters 9 and 11 of the 2018 publication of the International Fire Code, as published by the International Code Council; or
(B) any other standards as may be adopted by the Secretary, including any relevant updates to the International Fire Code, through a notice published in the Federal Register.
(22) Qualifying smoke alarms
(A) In general
(B) DefinitionsFor purposes of this paragraph, the following definitions shall apply:
(i) Smoke alarm defined
(ii) Qualifying smoke alarm definedThe term “qualifying smoke alarm” means a smoke alarm that—(I) in the case of a dwelling unit built before December 29, 2022, and not substantially rehabilitated after December 29, 2022—(aa)(AA) is hardwired; or(BB) uses 10-year non rechargeable, nonreplaceable primary batteries and is sealed, is tamper resistant, and contains silencing means; and(bb) provides notification for persons with hearing loss as required by the National Fire Protection Association Standard 72, or any successor standard; or(II) in the case of a dwelling unit built or substantially rehabilitated after December 29, 2022, is hardwired.
(p) Shared housing for elderly and handicapped
(q) Administrative fees
(1) Fee for ongoing costs of administration
(A) In general
(B) Fiscal year 1999
(i) CalculationFor fiscal year 1999, the fee for each month for which a dwelling unit is covered by an assistance contract shall be—(I) in the case of a public housing agency that, on an annual basis, is administering a program for not more than 600 dwelling units, 7.65 percent of the base amount; and(II) in the case of an agency that, on an annual basis, is administering a program for more than 600 dwelling units (aa) for the first 600 units, 7.65 percent of the base amount, and (bb) for any additional dwelling units under the program, 7.0 percent of the base amount.
(ii) Base amountFor purposes of this subparagraph, the base amount shall be the higher of—(I) the fair market rental established under subsection (c) of this section (as in effect immediately before the effective date under section 503(a) of the Quality Housing and Work Responsibility Act of 1998) for fiscal year 1993 for a 2-bedroom existing rental dwelling unit in the market area of the agency, and(II) the amount that is the lesser of (aa) such fair market rental for fiscal year 1994, or (bb) 103.5 percent of the amount determined under clause (i),
 adjusted based on changes in wage data or other objectively measurable data that reflect the costs of administering the program, as determined by the Secretary. The Secretary may require that the base amount be not less than a minimum amount and not more than a maximum amount.
(C) Subsequent fiscal years
(D) Increase
(E) Decrease
(2) Fee for preliminary expensesThe Secretary shall also establish reasonable fees (as determined by the Secretary) for—
(A) the costs of preliminary expenses, in the amount of $500, for a public housing agency, except that such fee shall apply to an agency only in the first year that the agency administers a tenant-based assistance program under this section, and only if, immediately before the effective date under section 503(a) of the Quality Housing and Work Responsibility Act of 1998, the agency was not administering a tenant-based assistance program under this chapter (as in effect immediately before such effective date), in connection with its initial increment of assistance received;
(B) the costs incurred in assisting families who experience difficulty (as determined by the Secretary) in obtaining appropriate housing under the programs; and
(C) extraordinary costs approved by the Secretary.
(3) Transfer of fees in cases of concurrent geographical jurisdiction
(4) Applicability
(5) Supplements for administering assistance for youth aging out of foster care
(r) Portability
(1)In general.—
(A) Any family receiving tenant-based assistance under subsection (o) may receive such assistance to rent an eligible dwelling unit if the dwelling unit to which the family moves is within any area in which a program is being administered under this section.
(B)
(i) Notwithstanding subparagraph (A) and subject to any exceptions established under clause (ii) of this subparagraph, a public housing agency may require that any family not living within the jurisdiction of the public housing agency at the time the family applies for assistance from the agency shall, during the 12-month period beginning on the date of initial receipt of housing assistance made available on behalf of the family from such agency, lease and occupy an eligible dwelling unit located within the jurisdiction served by the agency.
(ii) The Secretary may establish such exceptions to the authority of public housing agencies established under clause (i).
(2) The public housing agency having authority with respect to the dwelling unit to which a family moves under this subsection shall have the responsibility of carrying out the provisions of this subsection with respect to the family.
(3) In providing assistance under subsection (o) for any fiscal year, the Secretary shall give consideration to any reduction in the number of resident families incurred by a public housing agency in the preceding fiscal year as a result of the provisions of this subsection. The Secretary shall establish procedures for the compensation of public housing agencies that issue vouchers to families that move into or out of the jurisdiction of the public housing agency under portability procedures. The Secretary may reserve amounts available for assistance under subsection (o) to compensate those public housing agencies.
(4) The provisions of this subsection may not be construed to restrict any authority of the Secretary under any other provision of law to provide for the portability of assistance under this section.
(5)Lease violations.—A family may not receive a voucher from a public housing agency and move to another jurisdiction under the tenant-based assistance program if the family has moved out of the assisted dwelling unit of the family in violation of a lease, except that a family may receive a voucher from a public housing agency and move to another jurisdiction under the tenant-based assistance program if the family has complied with all other obligations of the section 8 [42 U.S.C. 1437f] program and has moved out of the assisted dwelling unit in order to protect the health or safety of an individual who is or has been the victim of domestic violence, dating violence, or stalking and who reasonably believed he or she was imminently threatened by harm from further violence if he or she remained in the assisted dwelling unit.
(s) Prohibition of denial of certificates and vouchers to residents of public housing
(t) Enhanced vouchers
(1) In generalEnhanced voucher assistance under this subsection for a family shall be voucher assistance under subsection (o), except that under such enhanced voucher assistance—
(A) subject only to subparagraph (D), the assisted family shall pay as rent no less than the amount the family was paying on the date of the eligibility event for the project in which the family was residing on such date;
(B) the assisted family may elect to remain in the same project in which the family was residing on the date of the eligibility event for the project, and if, during any period the family makes such an election and continues to so reside, the rent for the dwelling unit of the family in such project exceeds the applicable payment standard established pursuant to subsection (o) for the unit, the amount of rental assistance provided on behalf of the family shall be determined using a payment standard that is equal to the rent for the dwelling unit (as such rent may be increased from time-to-time), subject to paragraph (10)(A) of subsection (o) and any other reasonable limit prescribed by the Secretary, except that a limit shall not be considered reasonable for purposes of this subparagraph if it adversely affects such assisted families;
(C) subparagraph (B) of this paragraph shall not apply and the payment standard for the dwelling unit occupied by the family shall be determined in accordance with subsection (o) if—
(i) the assisted family moves, at any time, from such project; or
(ii) the voucher is made available for use by any family other than the original family on behalf of whom the voucher was provided; and
(D) if the annual adjusted income of the assisted family declines to a significant extent, the percentage of annual adjusted income paid by the family for rent shall not exceed the greater of 30 percent or the percentage of annual adjusted income paid at the time of the eligibility event for the project.
(2) Eligibility event
(3) Treatment of enhanced vouchers provided under other authority
(A) In general
(B) Identification of other authorityThe authority specified in this subparagraph is the authority under—
(i) the 10th, 11th, and 12th provisos under the “Preserving Existing Housing Investment” account in title II of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1997 (Public Law 104–204; 110 Stat. 2884), pursuant to such provisos, the first proviso under the “Housing Certificate Fund” account in title II of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1998 (Public Law 105–65; 111 Stat. 1351), or the first proviso under the “Housing Certificate Fund” account in title II of the Departments of Veterans Affairs and Housing and Urban Development, and Independent Agencies Appropriations Act, 1999 (Public Law 105–276; 112 Stat. 2469); and
(ii) paragraphs (3) and (4) of section 515(c) of the Multifamily Assisted Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f note), as in effect before October 20, 1999.
(4) Authorization of appropriations
(u) Assistance for residents of rental rehabilitation projectsIn the case of low-income families living in rental projects rehabilitated under section 1437o 6
6 See References in Text note below.
of this title or section 1490m of this title before rehabilitation—
(1) vouchers under this section shall be made for families who are required to move out of their units because of the physical rehabilitation activities or because of overcrowding;
(2) at the discretion of each public housing agency or other agency administering the allocation of assistance or vouchers under this section may be made for families who would have to pay more than 30 percent of their adjusted income for rent after rehabilitation whether they choose to remain in, or to move from, the project; and
(3) the Secretary shall allocate assistance for vouchers under this section to ensure that sufficient resources are available to address the physical or economic displacement, or potential economic displacement, of existing tenants pursuant to paragraphs (1) and (2).
(v) Extension of expiring contracts
(w) Repealed. Pub. L. 106–74, title V, § 531(d)(2), Oct. 20, 1999, 113 Stat. 1116
(x) Family unification
(1) Increase in budget authority
(2) Use of funds
(3) Allocation
(A) In general
(B) Assistance for youth aging out of foster care
(4) Coordination between public housing agencies and public child welfare agenciesThe Secretary shall, not later than the expiration of the 180-day period beginning on July 29, 2016, and after consultation with other appropriate Federal agencies, issue guidance to improve coordination between public housing agencies and public child welfare agencies in carrying out the program under this subsection, which shall provide guidance on—
(A) identifying eligible recipients for assistance under this subsection and establishing a point of contact at public housing agencies to ensure that public housing agencies receive appropriate referrals regarding eligible recipients;
(B) coordinating with other local youth and family providers in the community and participating in the Continuum of Care program established under subtitle C of title IV of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11381 et seq.);
(C) implementing housing strategies to assist eligible families and youth;
(D) aligning system goals to improve outcomes for families and youth and reducing lapses in housing for families and youth; and
(E) identifying resources that are available to eligible families and youth to provide supportive services available through parts B and E of title IV of the Social Security Act (42 U.S.C. 621 et seq.; 670 et seq.) or that the head of household of a family or youth may be entitled to receive under section 477 of the Social Security Act (42 U.S.C. 677).
(5) Requirements for assistance for youth aging out of foster careAssistance provided under this subsection for an eligible youth pursuant to paragraph (2)(B) shall be subject to the following requirements:
(A) Requirements to extend assistance
(i) Participation in family self-sufficiency
(ii) Education, workforce development, or employmentIn the case of a public housing agency that is providing such assistance under this subsection on behalf of an eligible youth and that is not carrying out a family self-sufficiency program under section 1437u of this title, or is carrying out such a program in which the youth has been unable to enroll, the agency shall, subject only to the availability of such assistance, extend the provision of such assistance for two successive 12-month periods, after the period referred to in paragraph (2)(B), but only if for not less than 9 months of the 12-month period preceding each such extension the youth was—(I) engaged in obtaining a recognized postsecondary credential or a secondary school diploma or its recognized equivalent;(II) enrolled in an institution of higher education, as such term is defined in section 1001(a) of title 20 and including the institutions described in subparagraphs (A) and (B) of section 1002(a)(1) of title 20; or(III) participating in a career pathway, as such term is defined in section 3102 of title 29.
 Notwithstanding any other provision of this clause, a public housing agency shall consider employment as satisfying the requirements under this subparagraph.
(iii) ExceptionsNotwithstanding clauses (i) and (ii), a public housing agency that is providing such assistance under this subsection on behalf of an eligible youth shall extend the provision of such assistance for up to 24 months beyond the period referred to in paragraph (2)(B), and clauses (i) and (ii) of this subparagraph shall not apply, if the eligible youth certifies that he or she is—(I) a parent or other household member responsible for the care of a dependent child under the age of 6 or for the care of an incapacitated person;(II) a person who is regularly and actively participating in a drug addiction or alcohol treatment and rehabilitation program; or(III) a person who is incapable of complying with the requirement under clause (i) or (ii), as applicable, due to a documented medical condition.
(iv) Verification of compliance
(B) Supportive services
(i) Eligibility
(ii) Information
(C) Applicability to Moving to Work agencies
(D) Termination of vouchers upon turn-over
(E) Reports
(i) In generalThe Secretary shall require each public housing agency that provides such assistance under this subsection in any fiscal year to submit a report to the Secretary for such fiscal year that—(I) specifies the number of persons on whose behalf such assistance under this subsection was provided during such fiscal year;(II) specifies the number of persons who applied during such fiscal year for such assistance under this subsection, but were not provided such assistance, and provides a brief identification in each instance of the reason why the public housing agency was unable to award such assistance; and(III) describes how the public housing agency communicated or collaborated with public child welfare agencies to collect such data.
(ii) Information collections
(F) Consultation
(6) DefinitionsFor purposes of this subsection:
(A) Applicant
(B) Public child welfare agency
(y) Homeownership option
(1) Use of assistance for homeownershipA public housing agency providing tenant-based assistance on behalf of an eligible family under this section may provide assistance for an eligible family that purchases a dwelling unit (including a unit under a lease-purchase agreement) that will be owned by 1 or more members of the family, and will be occupied by the family, if the family—
(A) is a first-time homeowner, or owns or is acquiring shares in a cooperative;
(B) demonstrates that the family has income from employment or other sources (other than public assistance, except that the Secretary may provide for the consideration of public assistance in the case of an elderly family or a disabled family), as determined in accordance with requirements of the Secretary, that is not less than twice the payment standard established by the public housing agency (or such other amount as may be established by the Secretary);
(C) except as provided by the Secretary, demonstrates at the time the family initially receives tenant-based assistance under this subsection that one or more adult members of the family have achieved employment for the period as the Secretary shall require;
(D) participates in a homeownership and housing counseling program provided by the agency; and
(E) meets any other initial or continuing requirements established by the public housing agency in accordance with requirements established by the Secretary.
(2) Determination of amount of assistance
(A) Monthly expenses not exceeding payment standardIf the monthly homeownership expenses, as determined in accordance with requirements established by the Secretary, do not exceed the payment standard, the monthly assistance payment shall be the amount by which the homeownership expenses exceed the highest of the following amounts, rounded to the nearest dollar:
(i) 30 percent of the monthly adjusted income of the family.
(ii) 10 percent of the monthly income of the family.
(iii) If the family is receiving payments for welfare assistance from a public agency, and a portion of those payments, adjusted in accordance with the actual housing costs of the family, is specifically designated by that agency to meet the housing costs of the family, the portion of those payments that is so designated.
(B) Monthly expenses exceed payment standard
(3) Inspections and contract conditions
(A) In generalEach contract for the purchase of a unit to be assisted under this section shall—
(i) provide for pre-purchase inspection of the unit by an independent professional; and
(ii) require that any cost of necessary repairs be paid by the seller.
(B) Annual inspections not required
(4) Other authority of the SecretaryThe Secretary may—
(A) limit the term of assistance for a family assisted under this subsection; and
(B) modify the requirements of this subsection as the Secretary determines to be necessary to make appropriate adaptations for lease-purchase agreements.
(5) Inapplicability of certain provisionsAssistance under this subsection shall not be subject to the requirements of the following provisions:
(A) Subsection (c)(3)(B) 6 of this section.
(B) Subsection (d)(1)(B)(i) of this section.
(C) Any other provisions of this section governing maximum amounts payable to owners and amounts payable by assisted families.
(D) Any other provisions of this section concerning contracts between public housing agencies and owners.
(E) Any other provisions of this chapter that are inconsistent with the provisions of this subsection.
(6) Reversion to rental status
(A) FHA-insured mortgages
(B) Other mortgages
(C) All mortgages
(7) Downpayment assistance
(A) Authority
(B) Amount
(8) “First-time homeowner” definedFor purposes of this subsection, the term “first-time homeowner” means—
(A) a family, no member of which has had a present ownership interest in a principal residence during the 3 years preceding the date on which the family initially receives assistance for homeownership under this subsection; and
(B) any other family, as the Secretary may prescribe.
(z) Termination of section 1437f contracts and reuse of recaptured budget authority
(1) General authorityThe Secretary may reuse any budget authority, in whole or part, that is recaptured on account of expiration or termination of a housing assistance payments contract only for one or more of the following:
(A) Tenant-based assistance
(B) Project-based assistance
(2) Families occupying units formerly assisted under terminated contract
(aa) Omitted
(bb) Transfer, reuse, and rescission of budget authority
(1) Transfer of budget authority
(2) Reuse and rescission of certain recaptured budget authority
(cc) Law enforcement and security personnel
(1) In general
(2) Rent requirementsWith respect to any assistance provided by an owner under this subsection, the Secretary may—
(A) permit the owner to establish such rent requirements and other terms and conditions of occupancy that the Secretary considers to be appropriate; and
(B) require the owner to submit an application for those rent requirements, which application shall include such information as the Secretary, in the discretion of the Secretary, determines to be necessary.
(3) Applicability
(dd) Tenant-based contract renewals
(Sept. 1, 1937, ch. 896, title I, § 8, as added Pub. L. 93–383, title II, § 201(a), Aug. 22, 1974, 88 Stat. 662; amended Pub. L. 94–375, § 2(d), (e), (g), Aug. 3, 1976, 90 Stat. 1068; Pub. L. 95–24, title I, § 101(c), Apr. 30, 1977, 91 Stat. 55; Pub. L. 95–128, title II, § 201(c)–(e), Oct. 12, 1977, 91 Stat. 1128; Pub. L. 95–557, title II, § 206(d)(1), (e), (f), Oct. 31, 1978, 92 Stat. 2091, 2092; Pub. L. 96–153, title II, §§ 202(b), 206(b), 210, 211(b), Dec. 21, 1979, 93 Stat. 1106, 1108–1110; Pub. L. 96–399, title II, § 203, title III, § 308(c)(3), Oct. 8, 1980, 94 Stat. 1629, 1641; Pub. L. 97–35, title III, §§ 322(e), 324–326(a), (e)(1), 329H(a), Aug. 13, 1981

CITE AS: 42 USC 1437f

§ 1437f–1. Repealed. Pub. L. 116–6, div. G, title II, § 236, Feb. 15, 2019, 133 Stat. 467

CITE AS: 42 USC 1437f-1

§ 1437g. Public housing Capital and Operating Funds
(a) Merger into Capital Fund
(b) Merger into Operating Fund
(c) Allocation amount
(1) In generalFor fiscal year 2000 and each fiscal year thereafter, the Secretary shall allocate amounts in the Capital Fund and Operating Funds 1
1 So in original. Probably should be “Fund”.
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) FundingThere are authorized to be appropriated for assistance for public housing agencies under this section the following amounts:
(A) Capital Fund
(B) Operating Fund
(d) Capital Fund
(1) In generalThe Secretary shall establish a Capital Fund for the purpose of making assistance available to public housing agencies to carry out capital and management activities, including—
(A) the development, financing, and modernization of public housing projects, including the redesign, reconstruction, and reconfiguration of public housing sites and buildings (including accessibility improvements) and the development of mixed-finance projects;
(B) vacancy reduction;
(C) addressing deferred maintenance needs and the replacement of obsolete utility systems and dwelling equipment;
(D) planned code compliance;
(E) management improvements, including the establishment and initial operation of computer centers in and around public housing through a Neighborhood Networks initiative, for the purpose of enhancing the self-sufficiency, employability, and economic self-reliance of public housing residents by providing them with onsite computer access and training resources;
(F) demolition and replacement;
(G) resident relocation;
(H) capital expenditures to facilitate programs to improve the empowerment and economic self-sufficiency of public housing residents and to improve resident participation;
(I) capital expenditures to improve the security and safety of residents;
(J) homeownership activities, including programs under section 1437z–4 of this title;
(K) improvement of energy and water-use efficiency by installing fixtures and fittings that conform to the American Society of Mechanical Engineers/American National Standards Institute standards A112.19.2–1998 and A112.18.1–2000, or any revision thereto, applicable at the time of installation, and by increasing energy efficiency and water conservation by such other means as the Secretary determines are appropriate; and
(L) integrated utility management and capital planning to maximize energy conservation and efficiency measures.
(2) FormulaThe 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 1437d(j) of this title; and
(F) any other factors that the Secretary determines to be appropriate.
(3) Conditions on use for development and modernization
(A) Development
(B) Modernization
(C) Applicability of latest expiration date
(e) Operating Fund
(1) In generalThe 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 1437d(j)(6) of this title 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 policymaking 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 1437j of this title, including the costs of any related insurance needs;
(I) the costs of repaying, together with rent contributions, debt incurred to finance the rehabilitation and development of public housing units, which shall be subject to such reasonable requirements as the Secretary may establish;
(J) the costs associated with the operation and management of mixed finance projects, to the extent appropriate; and
(K) the costs of operating computer centers in public housing through a Neighborhood Networks initiative described in subsection (d)(1)(E), and of activities related to that initiative.
(2) Formula
(A) In generalThe 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 1437u(d)(2) 2
2 See References in Text note below.
of this title for families participating in a family self-sufficiency program of the agency under such section 1437u of this title; and
(vii) any other factors that the Secretary determines to be appropriate.
(B) Incentive to increase certain rental income
(C) Treatment of savings
(i) In general
(ii) Third party contracts
(iii) Term of contract
(iv) Existing contracts
(D) Freeze of consumption levels
(i) In general
(ii) Initial adjustment in consumption base level
(iii) Adjustments in consumption base level
(iv) SavingsAll cost savings resulting from an election made by a small public housing agency under this subparagraph—(I) shall accrue to the small public housing agency; and(II) may be used for any public housing purpose at the discretion of the small public housing agency.
(v) Third partiesA small public housing agency making an election under this subparagraph—(I) may use, but shall not be required to use, the services of a third party in its energy conservation program; and(II) shall have the sole discretion to determine the source, and terms and conditions, of any financing used for its energy conservation program.
(3) Condition on use
(f) Negotiated rulemaking procedure
(g) Limitations on use of funds
(1) Flexibility in use of funds
(A) Flexibility for Capital Fund amounts
(B) Flexibility for Operating Fund amounts
(2) Full flexibility for small PHAs
(3) Limitation on new construction
(A) In general
(B) Exception regarding use of assistance
(C) Exception regarding formulasSubject 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 1437f(o) of this title for the same period of time.
(h) Technical assistanceTo 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 1437d(j) of this title, to assist such agencies from being so designated; and
(B) designated as troubled under section 1437d(j) of this title, to assist such agencies in achieving the removal of that designation;
(5) contract expertise;
(6) training and technical assistance to assist in the oversight and management of public housing or tenant-based assistance;
(7) clearinghouse services in furtherance of the goals and activities of this subsection; and
(8) assistance in connection with the establishment and operation of computer centers in public housing through a Neighborhood Networks initiative described in subsection (d)(1)(E).
As used in this subsection, the terms “training” and “technical assistance” shall include training or technical assistance and the cost of necessary travel for participants in such training or technical assistance, by or to officials and employees of the Department and of public housing agencies, and to residents and to other eligible grantees.
(i) Eligibility of units acquired from proceeds of sales under demolition or disposition plan
(j) Penalty for slow expenditure of capital funds
(1) Obligation of amountsExcept 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 obligationThe 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
(B) Withholding of assistance
(C) Redistribution
(4) Exception to obligation requirements
(A) In general
(B) Prior fiscal years
(5) Expenditure of amounts
(A) In general
(B) Enforcement
(6) Right of recapture
(7) Treatment of replacement reserve
(k) Treatment of nonrental income
(l) Provision of only capital or operating assistance
(1) Authority
(2) Exemptions
(m) Treatment of public housing
(1) Repealed. Pub. L. 108–7, div. K, title II, § 212(a), Feb. 20, 2003, 117 Stat. 503
(2) Reduction of asthma incidence
(3) Services for elderly residents
(4) Effective date
(n) Establishment of replacement reserves
(1) In general
(2) Source and amount of funds for replacement reserveAt any time, a public housing agency may deposit funds from such agency’s Capital Fund into a replacement reserve, subject to the following:
(A) At the discretion of the Secretary, public housing agencies may transfer and hold in a replacement reserve funds originating from additional sources.
(B) No minimum transfer of funds to a replacement reserve shall be required.
(C) At any time, a public housing agency may not hold in a replacement reserve more than the amount the public housing authority has determined necessary to satisfy the anticipated capital needs of properties in its portfolio assisted under this section, as outlined in its Capital Fund 5-Year Action Plan, or a comparable plan, as determined by the Secretary.
(D) The Secretary may establish, by regulation, a maximum replacement reserve level or levels that are below amounts determined under subparagraph (C), which may be based upon the size of the portfolio assisted under this section or other factors.
(3) Transfer of operating funds
(4) Expenditure
(5) Management and report
(o) Public housing heating guidelines
(Sept. 1, 1937, ch. 896, title I, § 9, as added Pub. L. 93–383, title II, § 201(a), Aug. 22, 1974, 88 Stat. 666; amended Pub. L. 94–375, § 2(c), Aug. 3, 1976, 90 Stat. 1068; Pub. L. 95–24, title I, § 101(b), Apr. 30, 1977, 91 Stat. 55; Pub. L. 95–128, title II, § 201(f), Oct. 12, 1977, 91 Stat. 1129; Pub. L. 95–557, title II, § 206(g), Oct. 31, 1978, 92 Stat. 2093; Pub. L. 96–153, title II, §§ 201(c), 207, 211(a), Dec. 21, 1979, 93 Stat. 1106, 1109, 1110; Pub. L. 96–399, title II, § 201(b), (d), Oct. 8, 1980, 94 Stat. 1625; Pub. L. 97–35, title III, §§ 321(d), 322(c), Aug. 13, 1981, 95 Stat. 399, 402; Pub. L. 98–181, title I [title II, § 212], Nov. 30, 1983, 97 Stat. 1184; Pub. L. 99–272, title III, § 3003, Apr. 7, 1986, 100 Stat. 102; Pub. L. 100–242, title I, §§ 112(b)(4), 118, Feb. 5, 1988, 101 Stat. 1824, 1828; renumbered title I, Pub. L. 100–358, § 5, June 29, 1988, 102 Stat. 681; Pub. L. 101–625, title V, §§ 507, 572(2), title VIII, § 802(p), Nov. 28, 1990, 104 Stat. 4186, 4236, 4317; Pub. L. 102–550, title I, § 114, title VI, § 673, Oct. 28, 1992, 106 Stat. 3691, 3827; Pub. L. 103–233, title III, § 304, Apr. 11, 1994, 108 Stat. 370; Pub. L. 104–134, title I, § 101(e) [title II, § 218], Apr. 26, 1996, 110 Stat. 1321–257, 1321–290; renumbered title I, Pub. L. 104–140, § 1(a), May 2, 1996, 110 Stat. 1327; Pub. L. 104–330, title V, § 501(b)(5), Oct. 26, 1996, 110 Stat. 4042; Pub. L. 105–276, title II, § 210, title V, § 519(a), Oct. 21, 1998, 112 Stat. 2485, 2551; Pub. L. 106–377, § 1(a)(1) [title II, § 214(a)], Oct. 27, 2000, 114 Stat. 1441, 1441A–27; Pub. L. 108–7, div. K, title II, § 212(a), Feb. 20, 2003, 117 Stat. 503; Pub. L. 109–58, title I, § 151, Aug. 8, 2005, 119 Stat. 648; Pub. L. 110–161, div. K, title II, § 229, Dec. 26, 2007, 121 Stat. 2438; Pub. L. 110–289, div. B, title VIII, § 2804, July 30, 2008, 122 Stat. 2866; Pub. L. 114–201, title I, §§ 109, 111, July 29, 2016, 130 Stat. 801, 803; Pub. L. 115–174, title II, § 209(b), May 24, 2018, 132 Stat. 1315.)

CITE AS: 42 USC 1437g

§ 1437h. Implementation of provisions by Secretary
(a) Preparation and submission of annual budget program; maintenance of accounts; audit by Government Accountability Office
In the performance of, and with respect to, the functions, powers, and duties vested in him by this chapter, the Secretary, notwithstanding the provisions of any other law, shall—
(1) prepare annually and submit a budget program as provided for wholly owned Government corporations by chapter 91 of title 31; and
(2) maintain an integral set of accounts which may be audited by the Government Accountability Office as provided by chapter 91 of title 31.
(b) Availability of receipts and assets
(c) Federal Reserve banks to act as depositories, custodians and fiscal agents; reimbursement for services
(Sept. 1, 1937, ch. 896, title I, § 10, as added Pub. L. 93–383, title II, § 201(a), Aug. 22, 1974, 88 Stat. 666; amended Pub. L. 98–479, title II, § 203(b)(2), Oct. 17, 1984, 98 Stat. 2229; renumbered title I, Pub. L. 100–358, § 5, June 29, 1988, 102 Stat. 681; Pub. L. 104–316, title I, § 122(k), Oct. 19, 1996, 110 Stat. 3837; Pub. L. 108–271, § 8(b), July 7, 2004, 118 Stat. 814.)

CITE AS: 42 USC 1437h

§ 1437i. Obligations of public housing agencies; contestability; full faith and credit of United States pledged as security; tax exemption
(a) Obligations issued by a public housing agency in connection with low-income housing projects which (1) are secured (A) by a pledge of a loan under any agreement between such public housing agency and the Secretary, or (B) by a pledge of annual contributions under an annual contributions contract between such public housing agency and the Secretary, or (C) by a pledge of both annual contributions under an annual contributions contract and a loan under an agreement between such public housing agency and the Secretary, and (2) bear, or are accompanied by, a certificate of the Secretary that such obligations are so secured, shall be incontestable in the hands of a bearer and the full faith and credit of the United States is pledged to the payment of all amounts agreed to be paid by the Secretary as security for such obligations.
(b) Except as provided in section 1437c(g) of this title, obligations, including interest thereon, issued by public housing agencies in connection with low-income housing projects shall be exempt from all taxation now or hereafter imposed by the United States whether paid by such agencies or by the Secretary. The income derived by such agencies from such projects shall be exempt from all taxation now or hereafter imposed by the United States.
(Sept. 1, 1937, ch. 896, title I, § 11, as added Pub. L. 93–383, title II, § 201(a), Aug. 22, 1974, 88 Stat. 667; amended Pub. L. 97–35, title III, § 322(c), Aug. 13, 1981, 95 Stat. 402; renumbered title I, Pub. L. 100–358, § 5, June 29, 1988, 102 Stat. 681; Pub. L. 101–625, title V, § 572(2), Nov. 28, 1990, 104 Stat. 4236.)

CITE AS: 42 USC 1437i

§ 1437j. Labor standards and community service requirement
(a) Payment of wages prevailing in locality
(b) Exception for volunteersSubsection (a) and the provisions relating to wages (pursuant to subsection (a)) in any contract for loans, annual contributions, sale, or lease pursuant to this chapter, shall not apply to any individual that—
(1) performs services for which the individual volunteered;
(2)
(A) does not receive compensation for such services; or
(B) is paid expenses, reasonable benefits, or a nominal fee for such services; and
(3) is not otherwise employed at any time in the construction work.
(c) Community service requirement
(1) In generalExcept 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) ExemptionsThe 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)); 1
1 So in original. Probably should be only one closing parenthesis.
(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
(B) Due process
(C) NoncomplianceIf 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); 2
2 See References in Text note below.
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
(5) Inclusion in plan
(6) Geographic location
(7) Prohibition against replacement of employeesIn 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
(d) Treatment of income changes resulting from welfare program requirements
(1) Covered family
(2) Decreases in income for failure to comply
(A) In general
(B) No reduction based on time limit for assistance
(3) Effect of fraud
(4) Notice
(5) Occupancy rights
(6) Review
(7) Cooperation agreements for economic self-sufficiency activities
(A) Requirement
(B) Contents
(C) Confidentiality
(e) Lease provisions
(f) Treatment of income
(g) Definition
(Sept. 1, 1937, ch. 896, title I, § 12, as added Pub. L. 93–383, title II, § 201(a), Aug. 22, 1974, 88 Stat. 667; amended Pub. L. 97–35, title III, § 322(c), Aug. 13, 1981, 95 Stat. 402; Pub. L. 100–242, title I, § 112(b)(5), Feb. 5, 1988, 101 Stat. 1824; renumbered title I, Pub. L. 100–358, § 5, June 29, 1988, 102 Stat. 681; Pub. L. 101–625, title V, § 572(2), title IX, § 955(b), Nov. 28, 1990, 104 Stat. 4236, 4421; Pub. L. 105–276, title V, § 512(a), Oct. 21, 1998, 112 Stat. 2539.)

CITE AS: 42 USC 1437j

§ 1437j–1. Repealed. Pub. L. 105–276, title V, § 582(a)(5), Oct. 21, 1998, 112 Stat. 2643

CITE AS: 42 USC 1437j-1

§ 1437k. Consortia, joint ventures, affiliates, and subsidiaries of public housing agencies
(a) Consortia
(1) In general
(2) EffectWith respect to any consortium described in paragraph (1)—
(A) any assistance made available under this subchapter 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
(B) Minimum requirements
(b) Joint ventures
(1) In generalNotwithstanding 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 subchapter; or
(ii) for the purpose of providing or arranging for the provision of supportive or social services.
(2) Use and treatment of incomeAny 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 subchapter, except as otherwise provided under the formulas established under section 1437g(d)(2) and 1437g(e)(2) of this title.
(3) Audits
(Sept. 1, 1937, ch. 896, title I, § 13, as added Pub. L. 96–153, title II, § 209, Dec. 21, 1979, 93 Stat. 1109; amended Pub. L. 96–399, title II, § 202(b), Oct. 8, 1980, 94 Stat. 1629; renumbered title I, Pub. L. 100–358, § 5, June 29, 1988, 102 Stat. 681; Pub. L. 105–276, title V, § 515, Oct. 21, 1998, 112 Stat. 2549.)

CITE AS: 42 USC 1437k

§ 1437l. Repealed. Pub. L. 105–276, title V, § 522(a), Oct. 21, 1998, 112 Stat. 2564

CITE AS: 42 USC 1437l

§ 1437m. Payment of non-Federal share
Any of the following may be used as the non-Federal share required in connection with activities undertaken under Federal grant-in-aid programs which provide social, educational, employment, and other services to the tenants in a project assisted under this chapter, other than under section 1437f of this title;
(1) annual contributions under this chapter for operation of the project; or
(2) rental or use-value of buildings or facilities paid for, in whole or in part, from development, modernization, or operation cost financed under this chapter.
(Sept. 1, 1937, ch. 896, title I, § 15, as added Pub. L. 96–399, title II, § 212, Oct. 8, 1980, 94 Stat. 1636; amended Pub. L. 100–242, title I, § 112(b)(7), Feb. 5, 1988, 101 Stat. 1824; renumbered title I, Pub. L. 100–358, § 5, June 29, 1988, 102 Stat. 681.)

CITE AS: 42 USC 1437m

§ 1437n. Eligibility for assisted housing
(a) Income eligibility for public housing
(1) Income mix within projects
(2) PHA income mix
(A)1
1 So in original. No subpar. (B) has been enacted.
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 extremely low-income families.
(3) Prohibition of concentration of low-income families
(A) Prohibition
(B) Deconcentration
(i) In general
(ii) Incentives
(iii) Family choice
(4) Fungibility with tenant-based assistance
(A) Authority
(B) Credit for exceeding tenant-based assistance targeting requirementSubject 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 1437f of this title 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 numberThe 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 1437f of this title 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
(E) Qualified family
(5) Limitations on tenancy for over-income families
(A) LimitationsExcept as provided in subparagraph (D), in the case of any family residing in a dwelling unit of public housing whose income for the most recent two consecutive years, as determined pursuant to income reviews conducted pursuant to section 1437a(a)(6) of this title, has exceeded the applicable income limitation under subparagraph (C), the public housing agency shall—
(i) notwithstanding any other provision of this chapter, charge such family as monthly rent for the unit occupied by such family an amount equal to the greater of—(I) the applicable fair market rental established under section 1437f(c) of this title for a dwelling unit in the same market area of the same size; or(II) the amount of the monthly subsidy provided under this chapter for the dwelling unit, which shall include any amounts from the Operating Fund and Capital Fund under section 1437g of this title used for the unit, as determined by the agency in accordance with regulations that the Secretary shall issue to carry out this subclause; or
(ii) terminate the tenancy of such family in public housing not later than 6 months after the income determination described in subparagraph (A).
(B) Notice
(C) Income limitation
(D) Exception
(E) Reports on over-income families and waiting listsThe Secretary shall require that each public housing agency shall—
(i) submit a report annually, in a format required by the Secretary, that specifies—(I) the number of families residing, as of the end of the year for which the report is submitted, in public housing administered by the agency who had incomes exceeding the applicable income limitation under subparagraph (C); and(II) the number of families, as of the end of such year, on the waiting lists for admission to public housing projects of the agency; and
(ii) make the information reported pursuant to clause (i) publicly available.
(b) Income eligibility for tenant-based section 1437f assistance
(1) In general
(2) Jurisdictions served by multiple PHAs
(c) Income eligibility for project-based section 1437f assistance
(1) Pre-1981 act projects
(2) Post-1981 act projects
(3) Targeting
(4) Prohibition of skipping
(5) Exception
(6) DefinitionFor 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 1437f(b)(2) of this title (as in effect before October 1, 1983).
(B) The property disposition program under section 1437f(b) of this title (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 1437f of this title.
(D) The project-based certificate program under section 1437f(d)(2) of this title.
(E) The moderate rehabilitation program under section 1437f(e)(2) of this title (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 [12 U.S.C. 4101 et seq.] or the provisions of the Emergency Low Income Housing Preservation Act of 1987 (as in effect before November 28, 1990).
(G)Section 1437f of this title (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 1701s of title 12 or section 1715z–1(f)(2) of title 12.
(d) Establishment of different standards
(e) Eligibility for assistance based on assets
(1) Limitation on assetsSubject to paragraph (3) and notwithstanding any other provision of this chapter, a dwelling unit assisted under this chapter may not be rented and assistance under this chapter may not be provided, either initially or at each recertification of family income, to any family—
(A) whose net family assets exceed $100,000, as such amount is adjusted annually by applying an inflationary factor as the Secretary considers appropriate; or
(B) who has a present ownership interest in, a legal right to reside in, and the effective legal authority to sell, real property that is suitable for occupancy by the family as a residence, except that the prohibition under this subparagraph shall not apply to—
(i) any property for which the family is receiving assistance under subsection (y) or (o)(12) of section 1437f of this title;
(ii) any person that is a victim of domestic violence; or
(iii) any family that is offering such property for sale.
(2) Net family assets
(A) In general
(B) ExclusionsSuch term does not include—
(i) the value of personal property, except for items of personal property of significant value, as the Secretary may establish or the public housing agency may determine;
(ii) the value of any retirement account;
(iii) real property for which the family does not have the effective legal authority necessary to sell such property;
(iv) any amounts recovered in any civil action or settlement based on a claim of malpractice, negligence, or other breach of duty owed to a member of the family and arising out of law, that resulted in a member of the family being disabled;
(v) the value of any Coverdell education savings account under section 530 of title 26 or any qualified tuition program under section 529 of such title; and
(vi) such other exclusions as the Secretary may establish.
(C) Trust funds
(3) Self-certification
(A) Net family assets
(B) No current real property ownership
(C) Standardized forms
(4) Compliance for public housing dwelling units
(5) Enforcement
(6) Authority to delay evictions
(7) Verifying income
(A) Beginning in fiscal year 2018, the Secretary shall require public housing agencies to require each applicant for, or recipient of, benefits under this chapter to provide authorization by the applicant or recipient (or by any other person whose income or resources are material to the determination of the eligibility of the applicant or recipient for such benefits) for the public housing agency to obtain (subject to the cost reimbursement requirements of section 1115(a) of the Right to Financial Privacy Act [12 U.S.C. 3415]) from any financial institution (within the meaning of section 1101(1) of such Act [12 U.S.C. 3401(1)]) any financial record (within the meaning of section 1101(2) of such Act [12 U.S.C. 3401(2)]) held by the institution with respect to the applicant or recipient (or any such other person) whenever the public housing agency determines the record is needed in connection with a determination with respect to such eligibility or the amount of such benefits.
(B) Notwithstanding section 1104(a)(1) of the Right to Financial Privacy Act [12 U.S.C. 3404(a)(1)], an authorization provided by an applicant or recipient (or any other person whose income or resources are material to the determination of the eligibility of the applicant or recipient) pursuant to subparagraph (A) of this paragraph shall remain effective until the earliest of—
(i) the rendering of a final adverse decision on the applicant’s application for eligibility for benefits under this chapter;
(ii) the cessation of the recipient’s eligibility for benefits under this chapter; or
(iii) the express revocation by the applicant or recipient (or such other person referred to in subparagraph (A)) of the authorization, in a written notification to the Secretary.
(C)
(i) An authorization obtained by the public housing agency pursuant to this paragraph shall be considered to meet the requirements of the Right to Financial Privacy Act [12 U.S.C. 3401 et seq.] for purposes of section 1103(a) of such Act [12 U.S.C. 3403(a)], and need not be furnished to the financial institution, notwithstanding section 1104(a) of such Act [12 U.S.C. 3404(a)].
(ii) The certification requirements of section 1103(b) of the Right to Financial Privacy Act [12 U.S.C. 3403(b)] shall not apply to requests by the public housing agency pursuant to an authorization provided under this clause.
(iii) A request by the public housing agency pursuant to an authorization provided under this clause is deemed to meet the requirements of section 1104(a)(3) of the Right to Financial Privacy Act [12 U.S.C. 3404(a)(3)] and the flush language of section 1102 of such Act [12 U.S.C. 3402].
(iv) The public housing agency shall inform any person who provides authorization pursuant to this paragraph of the duration and scope of the authorization.
(D) If an applicant for, or recipient of, benefits under this chapter (or any such other person referred to in subparagraph (A)) refuses to provide, or revokes, any authorization made by the applicant or recipient for the public housing agency to obtain from any financial institution any financial record, the public housing agency may, on that basis, determine that the applicant or recipient is ineligible for benefits under this subchapter.
(f) Ineligibility of individuals convicted of manufacturing or producing methamphetamine on the premisesNotwithstanding any other provision of law, a public housing agency shall establish standards for occupancy in public housing dwelling units and assistance under section 1437f of this title that—
(1) permanently prohibit occupancy in any public housing dwelling unit by, and assistance under section 1437f of this title for, any person who has been convicted of manufacturing or otherwise producing methamphetamine on the premises in violation of any Federal or State law; and
(2) immediately and permanently terminate the tenancy in any public housing unit of, and the assistance under section 1437f of this title for, any person who is convicted of manufacturing or otherwise producing methamphetamine on the premises in violation of any Federal or State law.
(Sept. 1, 1937, ch. 896, title I, § 16, as added Pub. L. 97–35, title III, § 323, Aug. 13, 1981, 95 Stat. 404; amended Pub. L. 98–181, title I [title II, § 213], Nov. 30, 1983, 97 Stat. 1184; Pub. L. 100–242, title I, §§ 103, 112(b)(8), Feb. 5, 1988, 101 Stat. 1822, 1824; renumbered title I, Pub. L. 100–358, § 5, June 29, 1988, 102 Stat. 681; Pub. L. 100–628, title X, § 1001(a), Nov. 7, 1988, 102 Stat. 3263; Pub. L. 101–625, title V, §§ 511, 572(1), Nov. 28, 1990, 104 Stat. 4194, 4236; Pub. L. 102–550, title I, § 105, Oct. 28, 1992, 106 Stat. 3684; Pub. L. 104–99, title IV, § 402(d)(6)(A)(v), Jan. 26, 1996, 110 Stat. 42; Pub. L. 104–120, § 9(d), Mar. 28, 1996, 110 Stat. 837; Pub. L. 104–330, title V, § 501(b)(7), Oct. 26, 1996, 110 Stat. 4042; Pub. L. 105–276, title IV, § 428, title V, §§ 513(a), 576(d)(2), Oct. 21, 1998, 112 Stat. 2511, 2543, 2640; Pub. L. 105–277, div. A, § 123, Oct. 21, 1998, 112 Stat. 2681–546; Pub. L. 106–74, title II, § 205, Oct. 20, 1999, 113 Stat. 1069; Pub. L. 113–76, div. L, title II, § 238(b), Jan. 17, 2014, 128 Stat. 635; Pub. L. 114–201, title I, §§ 103, 104, July 29, 2016, 130 Stat. 792, 793.)

CITE AS: 42 USC 1437n

§ 1437o. Repealed. Pub. L. 101–625, title II, § 289(b), Nov. 28, 1990, 104 Stat. 4128

CITE AS: 42 USC 1437o

§ 1437p. Demolition and disposition of public housing
(a) Applications for demolition and dispositionExcept as provided in subsection (b), upon receiving an application by a public housing agency for authorization, with or without financial assistance under this subchapter, to demolish or dispose of a public housing project or a portion of a public housing project (including any transfer to a resident-supported nonprofit entity), the Secretary shall approve the application, if the public housing agency certifies—
(1) in the case of—
(A) an application proposing demolition of a public housing project or a portion of a public housing project, that—
(i) the project or portion of the public housing project is obsolete as to physical condition, location, or other factors, making it unsuitable for housing purposes; and
(ii) no reasonable program of modifications is cost-effective to return the public housing project or portion of the project to useful life; and
(B) an application proposing the demolition of only a portion of a public housing project, that the demolition will help to ensure the viability of the remaining portion of the project;
(2) in the case of an application proposing disposition by sale or other transfer of a public housing project or other real property subject to this subchapter—
(A) the retention of the property is not in the best interests of the residents or the public housing agency because—
(i) conditions in the area surrounding the public housing project adversely affect the health or safety of the residents or the feasible operation of the project by the public housing agency; or
(ii) disposition allows the acquisition, development, or rehabilitation of other properties that will be more efficiently or effectively operated as low-income housing;
(B) the public housing agency has otherwise determined the disposition to be appropriate for reasons that are—
(i) in the best interests of the residents and the public housing agency;
(ii) consistent with the goals of the public housing agency and the public housing agency plan; and
(iii) otherwise consistent with this subchapter; or
(C) for property other than dwelling units, the property is excess to the needs of a public housing project or the disposition is incidental to, or does not interfere with, continued operation of a public housing project;
(3) that the public housing agency has specifically authorized the demolition or disposition in the public housing agency plan, and has certified that the actions contemplated in the public housing agency plan comply with this section;
(4) that the public housing agency—
(A) will notify each family residing in a project subject to demolition or disposition 90 days prior to the displacement date, except in cases of imminent threat to health or safety, consistent with any guidelines issued by the Secretary governing such notifications, that—
(i) the public housing project will be demolished or disposed of;
(ii) the demolition of the building in which the family resides will not commence until each resident of the building is relocated; and
(iii) each family displaced by such action will be offered comparable housing—(I) that meets housing quality standards;(II) that is located in an area that is generally not less desirable than the location of the displaced person’s housing; and(III) which may include—(aa) tenant-based assistance, except that the requirement under this clause regarding offering of comparable housing shall be fulfilled by use of tenant-based assistance only upon the relocation of such family into such housing;(bb) project-based assistance; or(cc) occupancy in a unit operated or assisted by the public housing agency at a rental rate paid by the family that is comparable to the rental rate applicable to the unit from which the family is vacated;
(B) will provide for the payment of the actual and reasonable relocation expenses of each resident to be displaced;
(C) will ensure that each displaced resident is offered comparable housing in accordance with the notice under subparagraph (A); and 1
1 So in original. The word “and” probably should not appear.
(D) will provide any necessary counseling for residents who are displaced; and
(E) will not commence demolition or complete disposition until all residents residing in the building are relocated;
(5) that the net proceeds of any disposition will be used—
(A) unless waived by the Secretary, for the retirement of outstanding obligations issued to finance the original public housing project or modernization of the project; and
(B) to the extent that any proceeds remain after the application of proceeds in accordance with subparagraph (A), for—
(i) the provision of low-income housing or to benefit the residents of the public housing agency; or
(ii) leveraging amounts for securing commercial enterprises, on-site in public housing projects of the public housing agency, appropriate to serve the needs of the residents; and
(6) that the public housing agency has complied with subsection (c).
(b) Disapproval of applicationsThe Secretary shall disapprove an application submitted under subsection (a) if the Secretary determines that—
(1) any certification made by the public housing agency under that subsection is clearly inconsistent with information and data available to the Secretary or information or data requested by the Secretary; or
(2) the application was not developed in consultation with—
(A) residents who will be affected by the proposed demolition or disposition;
(B) each resident advisory board and resident council, if any, of the project (or portion thereof) that will be affected by the proposed demolition or disposition; and
(C) appropriate government officials.
(c) Resident opportunity to purchase in case of proposed disposition
(1) In general
(2) Timing
(A) Expression of interest
(B) Opportunity to arrange purchase
(d) Replacement units
(e) Consolidation of occupancy within or among buildings
(f) De minimis exception to demolition requirements
(g) Uniform Relocation and Real Property Acquisition Act
(h) Relocation and replacement
(Sept. 1, 1937, ch. 896, title I, § 18, as added Pub. L. 98–181, title I [title II, § 214(a)], Nov. 30, 1983, 97 Stat. 1184; amended Pub. L. 100–242, title I, §§ 112(b)(9), 121, 170(f), Feb. 5, 1988, 101 Stat. 1824, 1837, 1867; renumbered title I, Pub. L. 100–358, § 5, June 29, 1988, 102 Stat. 681; Pub. L. 101–625, title IV, § 412, title V, §§ 512(a), 513(b), (c), 572, Nov. 28, 1990, 104 Stat. 4159, 4194–4196, 4236; Pub. L. 102–550, title I, §§ 111(b)(2), 116(a)–(c), Oct. 28, 1992, 106 Stat. 3688, 3693, 3694; Pub. L. 104–19, title I, § 1002(a), July 27, 1995, 109 Stat. 235; Pub. L. 104–134, title I, § 101(e) [title II, § 201(b)(2)], Apr. 26, 1996, 110 Stat. 1321–257, 1321–278; renumbered title I, Pub. L. 104–140, § 1(a), May 2, 1996, 110 Stat. 1327; Pub. L. 105–276, title V, § 531(a), Oct. 21, 1998, 112 Stat. 2570.)

CITE AS: 42 USC 1437p

§ 1437q. Financing limitations
On and after October 1, 1983, the Secretary—
(1) may only enter into contracts for annual contributions regarding obligations financing public housing projects authorized by section 1437c(c) of this title if such obligations are exempt from taxation under section 1437i(b) of this title, or if such obligations are issued under section 1437b of this title and such obligations are exempt from taxation; and
(2) may not enter into contracts for periodic payments to the Federal Financing Bank to offset the costs to the Bank of purchasing obligations (as described in the first sentence of section 2294(b) of title 12) issued by local public housing agencies for purposes of financing public housing projects authorized by section 1437c(c) of this title.
(Sept. 1, 1937, ch. 896, title I, § 19, as added Pub. L. 98–181, title I [title II, § 215], Nov. 30, 1983, 97 Stat. 1185; renumbered title I, Pub. L. 100–358, § 5, June 29, 1988, 102 Stat. 681.)

CITE AS: 42 USC 1437q

§ 1437r. Public housing resident management
(a) Purpose
The purpose of this section is to encourage increased resident management of public housing projects, as a means of improving existing living conditions in public housing projects, by providing increased flexibility for public housing projects that are managed by residents by—
(1) permitting the retention, and use for certain purposes, of any revenues exceeding operating and project costs; and
(2) providing funding, from amounts otherwise available, for technical assistance to promote formation and development of resident management entities.
For purposes of this section, the term “public housing project” includes one or more contiguous buildings or an area of contiguous row houses the elected resident councils of which approve the establishment of a resident management corporation and otherwise meet the requirements of this section.
(b) Program requirements
(1) Resident council
(2) Public housing management specialist
(3) Bonding and insurance
(4) Management responsibilities
(5) Annual audit
(c) Assistance amounts
A contract under this section for management of a public housing project by a resident management corporation shall provide for—
(1) the public housing agency to provide a portion of the assistance to agency from the Capital and Operating Funds to the resident management corporation in accordance with subsection (e) for purposes of operating the public housing project covered by the contract and performing such other eligible activities with respect to the project as may be provided under the contract;
(2) the amount of income expected to be derived from the project itself (from sources such as rents and charges);
(3) the amount of income to be provided to the project from the other sources of income of the public housing agency (such as interest income, administrative fees, and rents); and
(4) any income generated by a resident management corporation of a public housing project that exceeds the income estimated under the contract shall be used for eligible activities under subsections (d)(1) and (e)(1) of section 1437g of this title.
(d) Waiver of Federal requirements
(1) Waiver of regulatory requirements
(2) Waiver to permit employment
(3) Exceptions
(e) Direct provision of operating and capital assistance
(1) In general
The Secretary shall directly provide assistance from the Operating and Capital Funds to a resident management corporation managing a public housing development pursuant to a contract under this section, but only if—
(A) the resident management corporation petitions the Secretary for the release of the funds;
(B) the contract provides for the resident management corporation to assume the primary management responsibilities of the public housing agency; and
(C) the Secretary determines that the corporation has the capability to effectively discharge such responsibilities.
(2) Use of assistance
(3) Responsibility of public housing agency
(4) Calculation of Operating Fund allocation
(5) Calculation of total income
(A) Subject to subparagraph (B), the amount of funds provided by a public housing agency to a public housing project managed by a resident management corporation may not be reduced during the 3-year period beginning on February 5, 1988, or on any later date on which a resident management corporation is first established for the project.
(B) If the total income of a public housing agency (including any amounts from the Capital or Operating Funds provided to the public housing agency under section 1437g of this title) is reduced or increased, the income provided by the public housing agency to a public housing project managed by a resident management corporation shall be reduced or increased in proportion to the reduction or increase in the total income of the public housing agency, except that any reduction in amounts from the Operating Fund that occurs as a result of fraud, waste, or mismanagement by the public housing agency shall not affect the funds provided to the resident management corporation.
(6) Retention of excess revenues
(A) Any income generated by a resident management corporation of a public housing project that exceeds the income estimated for purposes of this subsection shall be excluded in subsequent years in calculating (i) the allocations from the Operating Fund for the public housing agency under
(B) Any revenues retained by a resident management corporation under subparagraph (A) shall be used for purposes of improving the maintenance and operation of the public housing project, for establishing business enterprises that employ residents of public housing, or for acquiring additional dwelling units for low-income families.
(f), (g) Repealed. Pub. L. 105–276, title V, § 532(a)(5), Oct. 21, 1998, 112 Stat. 2575
(h) Applicability
(Sept. 1, 1937, ch. 896, title I, § 20, as added Pub. L. 100–242, title I, § 122, Feb. 5, 1988, 101 Stat. 1839; renumbered title I, Pub. L. 100–358, § 5, June 29, 1988, 102 Stat. 681; amended Pub. L. 100–628, title X, § 1003, Nov. 7, 1988, 102 Stat. 3263; Pub. L. 101–625, title IV, § 415, title V, §§ 514, 572(1), Nov. 28, 1990, 104 Stat. 4160, 4196, 4236; Pub. L. 102–550, title I, § 117, Oct. 28, 1992, 106 Stat. 3695; Pub. L. 105–276, title V, § 532(a), Oct. 21, 1998, 112 Stat. 2574.)

CITE AS: 42 USC 1437r

§ 1437s. Public housing homeownership and management opportunities
(a) Homeownership opportunities in generalLow-income families residing in a public housing project shall be provided with the opportunity to purchase the dwelling units in the project through a qualifying resident management corporation as follows:
(1) Formation of resident management corporationAs a condition for public housing homeownership—
(A) the adult residents of a public housing project shall have formed a resident management corporation in accordance with regulations and requirements of the Secretary prescribed under this section and section 1437r of this title;
(B) the resident management corporation shall have entered into a contract with the public housing agency establishing the respective management rights and responsibilities of the resident management corporation and the public housing agency; and
(C) the resident management corporation shall have demonstrated its ability to manage public housing effectively and efficiently for a period of not less than 3 years.
(2) Homeownership assistance
(A) The Secretary may provide assistance from the Capital Fund to a public housing project in which homeownership activities under this section are conducted.
(B) The Secretary may provide financial assistance to public housing agencies, resident management corporations, or resident councils that obtain, by contract or otherwise, training, technical assistance, and educational assistance as the Secretary determines to be necessary to promote homeownership opportunities under this section.
(C) This paragraph shall not have effect after February 4, 1991. The Secretary may not provide financial assistance under subparagraph (B), after such date, unless the Secretary determines that such assistance is necessary for the development of a homeownership program that was initiated, as determined by the Secretary, before November 28, 1990.
(3) Conditions of purchase by a resident management corporation
(A) A resident management corporation may purchase from a public housing agency one or more multifamily buildings in a public housing project following a determination by the Secretary that—
(i) the resident management corporation has met the conditions of paragraph (1);
(ii) the resident management corporation has applied for and is prepared to undertake the ownership, management, and maintenance of the building or buildings with continued assistance from the Secretary;
(iii) the public housing agency has held one or more public hearings to obtain the views of citizens regarding the proposed purchase and, in consultation with the Secretary, has certified that the purchase will not interfere with the rights of other families residing in public housing, will not harm the efficient operation of other public housing, and is in the interest of the community;
(iv) the public housing agency has certified that it has and will implement a plan to replace public housing units sold under this section within 30 months of the sale, which plan shall provide for replacement of 100 percent of the units sold under this section by—(I) production, acquisition, or rehabilitation of vacant public housing units by the public housing agency; and(II) acquisition by the resident management corporation of nonpublicly owned, decent, and affordable housing units, which the resident management corporation shall operate as rental housing subject to tenant income and rent limitations comparable to the limitations applicable to public housing; and
(v) the building or buildings meet the housing quality standards applicable under section 1437d(f) of this title, and the physical condition, management, and operation of the building or buildings are sufficient to permit affordable homeownership by the families residing in the project.
(B) The price of a building purchased under the preceding sentence shall be approved by the Secretary, in consultation with the public housing agency and resident management corporation, taking into account the fair market value of the property, the ability of resident families to afford and maintain the property, and such other factors as the Secretary determines to be consistent with increasing the supply of dwelling units affordable to very low income families.
(C) This paragraph shall not have effect after February 4, 1991. The authority for a resident management corporation to purchase 1 or more multifamily buildings in a public housing project from a public housing agency shall terminate after such date, unless the Secretary determines that such purchase is necessary for the development of a homeownership program that was initiated, as determined by the Secretary, before November 28, 1990.
(4) Conditions of resale
(A)
(i) A resident management corporation may sell a dwelling unit or ownership rights in a dwelling unit only to a lower income family residing in, or eligible to reside in, public housing and only if the Secretary determines that the purchase will not interfere with the rights of other families residing in the housing project or harm the efficient operation of the project, and the family will be able to purchase and maintain the property.
(ii) The sale of dwelling units or ownership rights in dwelling units under clause (i) shall be made to families in the following order of priority:(I) a lower income family residing in the public housing project in which the dwelling unit is located;(II) a lower income family residing in any public housing project within the jurisdiction of the public housing agency having jurisdiction with respect to the project in which the dwelling unit is located;(III) a lower income family receiving Federal housing assistance and residing in the jurisdiction of such public housing agency; and(IV) a lower income family on the waiting list of such public housing agency for public housing or assistance under section 1437f of this title, with priority given in the order in which the family appears on the waiting list.
(iii) Each resident management corporation shall provide each family described in clause (ii) with a notice of the eligibility of the family to purchase a dwelling unit under this paragraph.
(B) A purchase under subparagraph (A) may be made under any of the following arrangements:
(i) Limited dividend cooperative ownership.
(ii) Condominium ownership.
(iii) Fee simple ownership.
(iv) Shared appreciation with a public housing agency providing financing under paragraph (6).
(v) Any other arrangement determined by the Secretary to be appropriate.
(C) Property purchased under this section shall be resold only to the resident management corporation, a lower income family residing in or eligible to reside in public housing or housing assisted under section 1437f of this title, or to the public housing agency.
(D) In no case may the owner receive consideration for his or her interest in the property that exceeds the total of—
(i) the contribution to equity paid by the owner;
(ii) the value, as determined by such means as the Secretary shall determine through regulation, of any improvements installed at the expense of the owner during the owner’s tenure as owner; and
(iii) the appreciated value determined by an inflation allowance at a rate which may be based on a cost of living index, an income index, or market index as determined by the Secretary through regulation and agreed to by the purchaser and the resident management corporation or the public housing agency, whichever is appropriate, at the time of initial sale, and applied against the contribution to equity; the resident management corporation or the public housing agency may, at the time of initial sale, enter into an agreement with the owner to set a maximum amount which this appreciation may not exceed.
(E) Upon sale, the resident management corporation or the public housing agency, whichever is appropriate, shall ensure that subsequent owners are bound by the same limitations on resale and further restrictions on equity appreciation.
(5) Use of proceeds
(6) Financing
(7) Capital and operating assistance
(8) Operating Fund allocation
(b) Protection of nonpurchasing families
(1) Eviction prohibition
(2) Tenants rights
(3) Rental assistance
(4) Rental and relocation assistance
(A) to assist the family in relocating to a comparable appropriate sized dwelling unit in another public housing project, and to reimburse the family for their cost of relocation; and
(B) to provide to the family the financial assistance necessary to permit the family to stay in the dwelling unit or to move to another comparable dwelling unit and to pay no more for rent than required under subparagraph (A), (B), or (C) of section 1437a(a)(1) of this title.
(c) Financial assistance for public housing agencies
(d) Additional homeownership and management opportunities
(e) Regulations
(f) Repealed. Pub. L. 104–66, title I, § 1071(a), Dec. 21, 1995, 109 Stat. 720
(g) Limitation
(Sept. 1, 1937, ch. 896, title I, § 21, as added Pub. L. 100–242, title I, § 123, Feb. 5, 1988, 101 Stat. 1842; renumbered title I, Pub. L. 100–358, § 5, June 29, 1988, 102 Stat. 681; amended Pub. L. 101–625, title IV, § 416, title V, § 572(1), Nov. 28, 1990, 104 Stat. 4161, 4236; Pub. L. 102–550, title I, § 118, Oct. 28, 1992, 106 Stat. 3695; Pub. L. 104–66, title I, § 1071(a), Dec. 21, 1995, 109 Stat. 720; Pub. L. 105–276, title V, §§ 518(a)(2)(A), 532(b), Oct. 21, 1998, 112 Stat. 2551, 2575.)

CITE AS: 42 USC 1437s

§ 1437t. Authority to convert public housing to vouchers
(a) Authority
(b) Conversion assessment
(1) In generalTo convert public housing under this section, a public housing agency shall conduct an assessment of the public housing that includes—
(A) a cost analysis that demonstrates whether or not the cost (both on a net present value basis and in terms of new budget authority requirements) of providing tenant-based assistance under section 1437f of this title for the same families in substantially similar dwellings over the same period of time is less expensive than continuing public housing assistance in the public housing project for the remaining useful life of the project;
(B) an analysis of the market value of the public housing project both before and after rehabilitation, and before and after conversion;
(C) an analysis of the rental market conditions with respect to the likely success of the use of tenant-based assistance under section 1437f of this title in that market for the specific residents of the public housing project, including an assessment of the availability of decent and safe dwellings renting at or below the payment standard established for tenant-based assistance under section 1437f of this title by the agency;
(D) the impact of the conversion to tenant-based assistance under this section on the neighborhood in which the public housing project is located; and
(E) a plan that identifies actions, if any, that the public housing agency would take with regard to converting any public housing project or projects (or portions thereof) of the public housing agency to tenant-based assistance.
(2) Timing
(3) Streamlined assessment
(c) Criteria for implementation of conversion planA public housing agency may convert a public housing project (or portion thereof) owned by the agency to tenant-based assistance only pursuant to a conversion assessment under subsection (b) that one year 1
1 So in original.
and that demonstrates that the conversion—
(1) will not be more expensive than continuing to operate the public housing project (or portion thereof) as public housing;
(2) will principally benefit the residents of the public housing project (or portion thereof) to be converted, the public housing agency, and the community; and
(3) will not adversely affect the availability of affordable housing in such community.
(d) Conversion plan requirementA public housing project may be converted under this section to tenant-based assistance only as provided in a conversion plan under this subsection, which has not been disapproved by the Secretary pursuant to subsection (e). Each conversion plan shall—
(1) be developed by the public housing agency, in consultation with the appropriate public officials, with significant participation by the residents of the project (or portion thereof) to be converted;
(2) be consistent with and part of the public housing agency plan;
(3) describe the conversion and future use or disposition of the project (or portion thereof) and include an impact analysis on the affected community;
(4) provide that the public housing agency shall—
(A) notify each family residing in a public housing project (or portion) to be converted under the plan 90 days prior to the displacement date except in cases of imminent threat to health or safety, consistent with any guidelines issued by the Secretary governing such notifications, that—
(i) the public housing project (or portion) will be removed from the inventory of the public housing agency; and
(ii) each family displaced by such action will be offered comparable housing—(I) that meets housing quality standards;(II) that is located in an area that is generally not less desirable than the location of the displaced person’s housing; and(III) which may include—(aa) tenant-based assistance, except that the requirement under this clause regarding offering of comparable housing shall be fulfilled by use of tenant-based assistance only upon the relocation of such family into such housing;(bb) project-based assistance; or(cc) occupancy in a unit operated or assisted by the public housing agency at a rental rate paid by the family that is comparable to the rental rate applicable to the unit from which the family is vacated;
(B) provide any necessary counseling for families displaced by such action;
(C) ensure that, if the project (or portion) converted is used as housing after such conversion, each resident may choose to remain in their dwelling unit in the project and use the tenant-based assistance toward rent for that unit; and
(D) provide any actual and reasonable relocation expenses for families displaced by the conversion; and
(5) provide that any proceeds to the agency from the conversion will be used subject to the limitations that are applicable under section 1437p(a)(5) of this title to proceeds resulting from the disposition or demolition of public housing.
(e) Review and approval of conversion plansThe Secretary shall disapprove a conversion plan only if—
(1) the plan is plainly inconsistent with the conversion assessment for the agency developed under subsection (b);
(2) there is reliable information and data available to the Secretary that contradicts that conversion assessment; or
(3) the plan otherwise fails to meet the requirements of this section.
(f) Tenant-based assistance
(Sept. 1, 1937, ch. 896, title I, § 22, as added Pub. L. 101–625, title V, § 515(a), Nov. 28, 1990, 104 Stat. 4196; amended Pub. L. 102–550, title I, § 119, Oct. 28, 1992, 106 Stat. 3695; Pub. L. 105–276, title V, § 533(a), Oct. 21, 1998, 112 Stat. 2576.)

CITE AS: 42 USC 1437t

§ 1437u. Family Self-Sufficiency program
(a) Purpose
(b) Continuation of prior required programs
(1) In general
(2) Reduction
(3) Exception
The Secretary shall not require a public housing agency to carry out a mandatory program for a period of time upon the request of the public housing agency and upon a determination by the Secretary that implementation is not feasible because of local circumstances, which may include—
(A) lack of supportive services accessible to eligible families, which shall include insufficient availability of resources for programs under title I of the Workforce Investment Act of 1998 (29 U.S.C. 2801 et seq.);
(B) lack of funding for reasonable administrative costs;
(C) lack of cooperation by other units of State or local government; or
(D) any other circumstances that the Secretary may consider appropriate.
(c) Eligibility
(1) Eligible families
A family is eligible to participate in a local Family Self-Sufficiency program under this section if—
(A) at least 1 household member seeks to become and remain employed in suitable employment or to increase earnings; and
(B) the household member receives direct assistance under section 1437f of this title or resides in a unit assisted under section 1437f or 1437g of this title.
(2) Eligible entities
The following entities are eligible to administer a local Family Self-Sufficiency program under this section:
(A) A public housing agency administering housing assistance to or on behalf of an eligible family under section 1437f or 1437g of this title.
(B) The owner or sponsor of a multifamily property receiving project-based rental assistance under section 1437f of this title, in accordance with the requirements under subsection (l).
(d) Contract of participation
(1) In general
(2) Supportive services
An eligible entity shall coordinate appropriate supportive services under this paragraph for each participating family entering into a contract of participation under paragraph (1). The supportive services shall be coordinated for the period the family is receiving assistance pursuant to section 1437f or 1437g of this title and for the duration of the contract of participation, and may include, but are not limited to—
(A) child care;
(B) transportation necessary to receive services;
(C) remedial education;
(D) education for completion of high school or attainment of a high school equivalency certificate;
(E) education in pursuit of a post-secondary degree or certification;
(F) job training and preparation;
(G) substance abuse treatment and counseling;
(H) training in financial literacy, such as training in financial management, financial coaching, and asset building, and money management;
(I) training in household management;
(J) homeownership education and assistance; and
(K) any other services and resources appropriate to assist eligible families to achieve economic independence and self-sufficiency.
(3) Term and extension
(4) Employment
(5) Nonparticipation
(e) Incentives for participation
(1) Maximum rents
(2) Escrow savings accounts
(3) Forfeited escrow
(f) Effect of increases in family income
(g) Program coordinating committee
(1) Functions
(2) Membership
(h) Action plan
(1) Required submission
(2) Development of plan
(3) Contents of plan
The Secretary shall require that the action plan contain at a minimum—
(A) a description of the size, characteristics, and needs of the population of the families expected to participate in the local self-sufficiency program;
(B) a description of the number of eligible participating families who can reasonably be expected to receive supportive services under the program, based on available and anticipated Federal, State, local, and private resources;
(C) a description of the services and activities under subsection (d)(2) to be coordinated on behalf of participating families receiving direct assistance under this section through sections 1437f and 1437g of this title, which shall be provided by both public and private resources;
(D) a description of the incentives pursuant to subsection (e) offered by the eligible entity to families to encourage participation in the program;
(E) a description of how the local program will coordinate services and activities according to the needs of the families participating in the program;
(F) a description of both the public and private resources that are expected to be made available to provide the activities and services under the local program;
(G) a timetable for implementation of the local program;
(H) assurances satisfactory to the Secretary that development of the services and activities under the local program has been coordinated with programs under title I of the Workforce Innovation and Opportunity Act [29 U.S.C. 3111 et seq.] and any other relevant employment, child care, transportation, training, and education programs in the applicable area, and that implementation will continue to be coordinated, in order to avoid duplication of services and activities; and
(I) assurances satisfactory to the Secretary that nonparticipating families will retain their rights to assistance under section 1437f or 1437g of this title notwithstanding the provisions of this section.
(i) Family Self-Sufficiency awards
(1) In general
(2) Eligibility for awards
The award established under paragraph (1) shall provide funding for family self-sufficiency coordinators as follows:
(A) Base award
(B) Additional award
(C) State and regional agencies
(D) Determination of number of coordinators
(E) Award allocation evaluation
(3) Renewals and allocation
(A) In general
Funds allocated by the Secretary under this subsection shall be allocated in the following order of priority:
(i) First priority
(ii) Second priority
(B) Guidance
If the first priority, as described in subparagraph (A)(i), cannot be fully satisfied, the Secretary may prorate the funding for each eligible entity, as long as—
(i) each eligible entity that has received funding for at least 1 part-time coordinator in the prior fiscal year is provided sufficient funding for at least 1 part-time coordinator as part of any such proration; and
(ii) each eligible entity that has received funding for at least 1 full-time coordinator in the prior fiscal year is provided sufficient funding for at least 1 full-time coordinator as part of any such proration.
(4) Recapture or offset
(5) Performance reporting
(6) Incentives for innovation and high performance
(j) On-site facilities
(k) Flexibility
(l) Programs for tenants in privately owned properties with project-based assistance
(1) Voluntary availability of FSS program
(2) Cooperative agreement
(3) Treatment of families assisted under this subsection
(4) Escrow
(A) Cooperative agreement
(B) Calculation and tracking by owner
(5) Exception
(6) Suspension of enrollment
(m) Reports
(1) To Secretary
Each eligible entity that carries out a local self-sufficiency program approved by the Secretary under this section shall submit to the Secretary, not less than annually a report regarding the program. The contents of the report shall include—
(A) a description of the activities carried out under the program;
(B) a description of the effectiveness of the program in assisting families to achieve economic independence and self-sufficiency;
(C) a description of the effectiveness of the program in coordinating resources of communities to assist families to achieve economic independence and self-sufficiency; and
(D) any recommendations of the eligible entity or the appropriate program coordinating committee for legislative or administrative action that would improve the self-sufficiency program carried out by the Secretary and ensure the effectiveness of the program.
(2) HUD annual report
(n) GAO report
(o) Definitions
In this section:
(1) Eligible entity
(2) Eligible family
(3) Participating family
(Sept. 1, 1937, ch. 896, title I, § 23, as added Pub. L. 101–625, title V, § 554(a), Nov. 28, 1990, 104 Stat. 4225; amended Pub. L. 102–550, title I, §§ 106, 185(b), Oct. 28, 1992, 106 Stat. 3684, 3747; Pub. L. 104–316, title I, § 122(l), Oct. 19, 1996, 110 Stat. 3837; Pub. L. 104–330, title V, § 501(b)(8), Oct. 26, 1996, 110 Stat. 4042; Pub. L. 105–276, title V, § 509(a), Oct. 21, 1998, 112 Stat. 2530; Pub. L. 105–277, div. A, § 101(f) [title VIII, § 405(d)(31), (f)(23)], Oct. 21, 1998, 112 Stat. 2681–337, 2681–425, 2681–433; Pub. L. 113–128, title V, § 512(ii), July 22, 2014, 128 Stat. 1721; Pub. L. 115–174, title III, § 306(a), May 24, 2018, 132 Stat. 1339.)

CITE AS: 42 USC 1437u

§ 1437v. Demolition, site revitalization, replacement housing, and tenant-based assistance grants for projects
(a) PurposesThe purpose of this section is to provide assistance to public housing agencies for the purposes of—
(1) improving the living environment for public housing residents of severely distressed public housing projects through the demolition, rehabilitation, reconfiguration, or replacement of obsolete public housing projects (or portions thereof);
(2) revitalizing sites (including remaining public housing dwelling units) on which such public housing projects are located and contributing to the improvement of the surrounding neighborhood;
(3) providing housing that will avoid or decrease the concentration of very low-income families; and
(4) building sustainable communities.
It is also the purpose of this section to provide assistance to smaller communities for the purpose of facilitating the development of affordable housing for low-income families that is undertaken in connection with a main street revitalization or redevelopment project in such communities.
(b) Grant authority
(c) Contribution requirement
(1) In generalThe Secretary may not make any grant under this section to any applicant unless the applicant certifies to the Secretary that the applicant will—
(A) supplement the aggregate amount of assistance provided under this section with an amount of funds from sources other than this section equal to not less than 5 percent of the amount provided under this section; and
(B) in addition to supplemental amounts provided in accordance with subparagraph (A), if the applicant uses more than 5 percent of the amount of assistance provided under this section for services under subsection (d)(1)(L), provide supplemental funds from sources other than this section in an amount equal to the amount so used in excess of 5 percent.
(2) Supplemental funds
(3) Exemption
(d) Eligible activities
(1) In generalGrants under this section may be used for activities to carry out revitalization programs for severely distressed public housing, including—
(A) architectural and engineering work;
(B) redesign, rehabilitation, or reconfiguration of a severely distressed public housing project, including the site on which the project is located;
(C) the demolition, sale, or lease of the site, in whole or in part;
(D) covering the administrative costs of the applicant, which may not exceed such portion of the assistance provided under this section as the Secretary may prescribe;
(E) payment of reasonable legal fees;
(F) providing reasonable moving expenses for residents displaced as a result of the revitalization of the project;
(G) economic development activities that promote the economic self-sufficiency of residents under the revitalization program, including a Neighborhood Networks initiative for the establishment and operation of computer centers in public housing for the purpose of enhancing the self-sufficiency, employability, an 1
1 So in original. Probably should be “and”.
economic self-reliance of public housing residents by providing them with onsite computer access and training resources;
(H) necessary management improvements;
(I) leveraging other resources, including additional housing resources, retail supportive services, jobs, and other economic development uses on or near the project that will benefit future residents of the site;
(J) replacement housing (including appropriate homeownership downpayment assistance for displaced residents or other appropriate replacement homeownership activities) and rental assistance under section 1437f of this title;
(K) transitional security activities; and
(L) necessary supportive services, except that not more than 15 percent of the amount of any grant may be used for activities under this paragraph.
(2) Endowment trust for supportive services
(e) Application and selection
(1) Application
(2) Selection criteriaThe Secretary shall establish criteria for the award of grants under this section and shall include among the factors—
(A) the relationship of the grant to the public housing agency plan for the applicant and how the grant will result in a revitalized site that will enhance the neighborhood in which the project is located and enhance economic opportunities for residents;
(B) the capability and record of the applicant public housing agency, or any alternative management entity for the agency, for managing redevelopment or modernization projects, meeting construction timetables, and obligating amounts in a timely manner;
(C) the extent to which the applicant could undertake such activities without a grant under this section;
(D) the extent of involvement of residents, State and local governments, private service providers, financing entities, and developers, in the development and ongoing implementation of a revitalization program for the project, except that the Secretary may not award a grant under this section unless the applicant has involved affected public housing residents at the beginning and during the planning process for the revitalization program, prior to submission of an application;
(E) the need for affordable housing in the community;
(F) the supply of other housing available and affordable to families receiving tenant-based assistance under section 1437f of this title;
(G) the amount of funds and other resources to be leveraged by the grant;
(H) the extent of the need for, and the potential impact of, the revitalization program;
(I) the extent to which the plan minimizes permanent displacement of current residents of the public housing site who wish to remain in or return to the revitalized community and provides for community and supportive services to residents prior to any relocation;
(J) the extent to which the plan sustains or creates more project-based housing units available to persons eligible for public housing in markets where the plan shows there is demand for the maintenance or creation of such units;
(K) the extent to which the plan gives to existing residents priority for occupancy in dwelling units which are public housing dwelling units, or for residents who can afford to live in other units, priority for those units in the revitalized community; and
(L) such other factors as the Secretary considers appropriate.
(3) Applicability of selection criteria
(f) Cost limitsSubject to the provisions of this section, the Secretary—
(1) shall establish cost limits on eligible activities under this section sufficient to provide for effective revitalization programs; and
(2) may establish other cost limits on eligible activities under this section.
(g) Disposition and replacement
(h) Administration by other entities
(i) Withdrawal of funding
(j) DefinitionsFor purposes of this section, the following definitions shall apply:
(1) ApplicantThe term “applicant” means—
(A) any public housing agency that is not designated as troubled pursuant to section 1437d(j)(2) of this title;
(B) any public housing agency for which a private housing management agent has been selected, or a receiver has been appointed, pursuant to section 1437d(j)(3) of this title; and
(C) any public housing agency that is designated as troubled pursuant to section 1437d(j)(2) of this title and that—
(i) is so designated principally for reasons that will not affect the capacity of the agency to carry out a revitalization program;
(ii) is making substantial progress toward eliminating the deficiencies of the agency; or
(iii) is otherwise determined by the Secretary to be capable of carrying out a revitalization program.
(2) Severely distressed public housingThe term “severely distressed public housing” means a public housing project (or building in a project)—
(A) that—
(i) requires major redesign, reconstruction or redevelopment, or partial or total demolition, to correct serious deficiencies in the original design (including inappropriately high population density), deferred maintenance, physical deterioration or obsolescence of major systems and other deficiencies in the physical plant of the project;
(ii) is a significant contributing factor to the physical decline of and disinvestment by public and private entities in the surrounding neighborhood;
(iii)(I) is occupied predominantly by families who are very low-income families with children, are unemployed, and dependent on various forms of public assistance;(II) has high rates of vandalism and criminal activity (including drug-related criminal activity) in comparison to other housing in the area; or(III) is lacking in sufficient appropriate transportation, supportive services, economic opportunity, schools, civic and religious institutions, and public services, resulting in severe social distress in the project;
(iv) cannot be revitalized through assistance under other programs, such as the program for capital and operating assistance for public housing under this chapter, or the programs under sections 1437g and 1437l of this title (as in effect before the effective date under under 2
2 So in original.
section 503(a) 2 the Quality Housing and Work Responsibility Act of 1998), because of cost constraints and inadequacy of available amounts; and
(v) in the case of individual buildings, is, in the Secretary’s determination, sufficiently separable from the remainder of the project of which the building is part to make use of the building feasible for purposes of this section; or
(B) that was a project described in subparagraph (A) that has been legally vacated or demolished, but for which the Secretary has not yet provided replacement housing assistance (other than tenant-based assistance).
(3) Supportive services
(k) Grantee reporting
(l) Annual reportThe Secretary shall submit to the Congress an annual report setting forth—
(1) the number, type, and cost of public housing units revitalized pursuant to this section;
(2) the status of projects identified as severely distressed public housing;
(3) the amount and type of financial assistance provided under and in conjunction with this section, including a specification of the amount and type of assistance provided under subsection (n);
(4) the types of projects funded, and number of affordable housing dwelling units developed with, grants under subsection (n); and
(5) the recommendations of the Secretary for statutory and regulatory improvements to the program established by this section.
(m) Funding
(1) Authorization of appropriations
(2) Technical assistance and program oversight
(3) Set-aside for main street housing grants
(n) Grants for assisting affordable housing developed through main street projects in smaller communities
(1) Authority and use of grant amounts
(2) Eligible projectFor purposes of this subsection, the term “eligible project” means a project that—
(A) the Secretary determines, under the criteria established pursuant to paragraph (3), is a main street project;
(B) is carried out within the jurisdiction of a smaller community receiving the grant; and
(C) involves the development of affordable housing that is located in the commercial area that is the subject of the project.
(3) Main street projectsThe Secretary shall establish requirements for a project to be considered a main street project for purposes of this section, which shall require that the project—
(A) has as its purpose the revitalization or redevelopment of a historic or traditional commercial area;
(B) involves investment, or other participation, by the government for, and private entities in, the community in which the project is carried out; and
(C) complies with such historic preservation guidelines or principles as the Secretary shall identify to preserve significant historic or traditional architectural and design features in the structures or area involved in the project.
(4) Eligible affordable housing activitiesFor purposes of this subsection, the activities described in subsection (d)(1) shall be considered eligible affordable housing activities, except that—
(A) such activities shall be conducted with respect to affordable housing rather than with respect to severely distressed public housing projects; and
(B) eligible affordable housing activities under this subsection shall not include the activities described in subparagraphs (B) through (E), (J), or (K) of subsection (d)(1).
(5) Maximum grant amount
(6) Contribution requirementA smaller community applying for a grant under this subsection shall be considered an applicant for purposes of subsection (c) (relating to contributions by applicants), except that—
(A) such supplemental amounts shall be used only for carrying out eligible affordable housing activities; and
(B) paragraphs (1)(B) and (3) shall not apply to grants under this subsection.
(7) Applications and selection
(A) Application
(B) Selection criteria
(8) Cost limits
(9) Inapplicability of other provisions
(10) Reporting
(11) DefinitionsFor purposes of this subsection, the following definitions shall apply:
(A) Affordable housingThe term “affordable housing” means rental or homeownership dwelling units that—
(i) are made available for initial occupancy to low-income families, with a subset of units made available to very- and extremely-low income families; and
(ii) are subject to the same rules regarding occupant contribution toward rent or purchase and terms of rental or purchase as dwelling units in public housing projects assisted with a grant under this section.
(B) Smaller communityThe term “smaller community” means a unit of general local government (as such term is defined in section 5302 of this title) that—
(i) has a population of 50,000 or fewer; and
(ii)(I) is not served by a public housing agency; or(II) is served by a single public housing agency, which agency administers 100 or fewer public housing dwelling units.
(o) Sunset
(Sept. 1, 1937, ch. 896, title I, § 24, as added Pub. L. 102–550, title I, § 120, Oct. 28, 1992, 106 Stat. 3695; amended Pub. L. 104–99, title IV, § 402(d)(6)(A)(vi), Jan. 26, 1996, 110 Stat. 43; Pub. L. 104–330, title V, § 501(b)(9), Oct. 26, 1996, 110 Stat. 4042; Pub. L. 105–276, title V, § 535(a), Oct. 21, 1998, 112 Stat. 2581; Pub. L. 106–377, § 1(a)(1) [title II, § 214(b)], Oct. 27, 2000, 114 Stat. 1441, 1441A–27; Pub. L. 108–7, div. K, title II, § 215, Feb. 20, 2003, 117 Stat. 504; Pub. L. 108–186, title IV, §§ 402(a), (b), (d), (e), 403, Dec. 16, 2003, 117 Stat. 2693, 2694; Pub. L. 109–289, div. B, title II, § 21045, as added Pub. L. 110–5, § 2, Feb. 15, 2007, 121 Stat. 54; Pub. L. 110–161, div. K, title II, § 224, Dec. 26, 2007, 121 Stat. 2437; Pub. L. 111–8, div. I, title II, § 223, Mar. 11, 2009, 123 Stat. 976; Pub. L. 111–117, div. A, title II, § 222, Dec. 16, 2009, 123 Stat. 3101; Pub. L. 112–55, div. C, title II, § 222, Nov. 18, 2011, 125 Stat. 699; Pub. L. 113–76, div. L, title II, § 234, Jan. 17, 2014, 128 Stat. 634; Pub. L. 113–235, div. K, title II, § 229, Dec. 16, 2014, 128 Stat. 2756; Pub. L. 114–113, div. L, title II, § 228, Dec. 18, 2015, 129 Stat. 2895; Pub. L. 115–31, div. K, title II, § 226, May 5, 2017, 131 Stat. 787.)

CITE AS: 42 USC 1437v

§ 1437w. Transfer of management of certain housing to independent manager at request of residents
(a) AuthorityThe Secretary may transfer the responsibility and authority for management of specified housing (as such term is defined in subsection (h)) from a public housing agency to an eligible management entity, in accordance with the requirements of this section, if—
(1) a request for transfer of management of such housing is made and approved in accordance with subsection (b); and
(2) the Secretary or the public housing agency, as appropriate pursuant to subsection (b), determines that—
(A) due to the mismanagement of the agency, such housing has deferred maintenance, physical deterioration, or obsolescence of major systems and other deficiencies in the physical plant of the project;
(B) such housing is located in an area such that the housing is subject to recurrent vandalism and criminal activity (including drug-related criminal activity); and
(C) the residents can demonstrate that the elements of distress for such housing specified in subparagraphs (A) and (B) can be remedied by an entity or entities, identified by the residents, that has or have a demonstrated capacity to manage, with reasonable expenses for modernization.
(b) Request for transferThe responsibility and authority for managing specified housing may be transferred only pursuant to a request made by a majority vote of the residents for the specified housing that—
(1) in the case of specified housing that is owned by a public housing agency that is designated as a troubled agency under section 1437d(j)(2) of this title—
(A) is made to the public housing agency or the Secretary; and
(B) is approved by the agency or the Secretary; or
(2) in the case of specified housing that is owned by a public housing agency that is not designated as a troubled agency under section 1437d(j)(2) of this title—
(A) is made to and approved by the public housing agency; or
(B) if a request is made to the agency pursuant to subparagraph (A) and is not approved, is subsequently made to and approved by the Secretary.
(c) Capital and operating assistance
(d) Contract between Secretary and manager
(1) Requirements
(2) Terms
(e) Compliance with public housing agency plan
Demolition and disposition by manager
(g) Limitation on PHA liability
(h) DefinitionsFor purposes of this section, the following definitions shall apply:
(1) Eligible management entityThe term “eligible management entity” means, with respect to any public housing project, any of the following entities:
(A) Nonprofit organizationA public or private nonprofit organization, which may—
(i) include a resident management corporation; and
(ii) not include the public housing agency that owns or operates the project.
(B) For-profit entity
(C) State or local government
(D) Public housing agency
The term does not include a resident council.
(2) Manager
(3) Nonprofit
(4) Private nonprofit organizationThe term “private nonprofit organization” means any private organization (including a State or locally chartered organization) that—
(A) is incorporated under State or local law;
(B) is nonprofit in character;
(C) complies with standards of financial accountability acceptable to the Secretary; and
(D) has among its purposes significant activities related to the provision of decent housing that is affordable to low-income families.
(5) Public nonprofit organization
(6) Specified housing
(Sept. 1, 1937, ch. 896, title I, § 25, as added Pub. L. 105–276, title V, § 534, Oct. 21, 1998, 112 Stat. 2579.)

CITE AS: 42 USC 1437w

§ 1437x. Environmental reviews
(a) In general
(1) Release of funds
(2) Implementation
(b) Procedure
(c) CertificationA certification under the procedures authorized by this section shall—
(1) be in a form acceptable to the Secretary;
(2) be executed by the chief executive officer or other officer of the State or unit of general local government who qualifies under regulations of the Secretary;
(3) specify that the State or unit of general local government under this section has fully carried out its responsibilities as described under subsection (a); and
(4) specify that the certifying officer—
(A) consents to assume the status of a responsible Federal official under the National Environmental Policy Act of 1969 [42 U.S.C. 4321 et seq.] and each provision of law specified in regulations issued by the Secretary insofar as the provisions of such Act or other such provision of law apply pursuant to subsection (a); and
(B) is authorized and consents on behalf of the State or unit of general local government and himself or herself to accept the jurisdiction of the Federal courts for the purpose of enforcement of his or her responsibilities as such an official.
(d) Approval by States
(Sept. 1, 1937, ch. 896, title I, § 26, as added Pub. L. 103–233, title III, § 305(b), Apr. 11, 1994, 108 Stat. 371; amended Pub. L. 104–330, title V, § 501(b)(11), Oct. 26, 1996, 110 Stat. 4042.)

CITE AS: 42 USC 1437x

§ 1437y. Provision of information to law enforcement and other agencies

Notwithstanding any other provision of law, the Secretary shall, at least 4 times annually and upon request of the Immigration and Naturalization Service (hereafter in this section referred to as the “Service”), furnish the Service with the name and address of, and other identifying information on, any individual who the Secretary knows is not lawfully present in the United States, and shall ensure that each contract for assistance entered into under section 1437d or 1437f of this title with a public housing agency provides that the public housing agency shall furnish such information at such times with respect to any individual who the public housing agency knows is not lawfully present in the United States.

(Sept. 1, 1937, ch. 896, title I, § 27, as added Pub. L. 104–193, title IV, § 404(d), Aug. 22, 1996, 110 Stat. 2267; amended Pub. L. 105–33, title V, § 5564, Aug. 5, 1997, 111 Stat. 639.)

CITE AS: 42 USC 1437y

§ 1437z. Exchange of information with law enforcement agenciesNotwithstanding any other provision of law, each public housing agency that enters into a contract for assistance under section 1437d or 1437f of this title with the Secretary shall furnish any Federal, State, or local law enforcement officer, upon the request of the officer, with the current address, Social Security number, and photograph (if applicable) of any recipient of assistance under this chapter, if the officer—
(1) furnishes the public housing agency with the name of the recipient; and
(2) notifies the agency that—
(A) such recipient—
(i) is fleeing to avoid prosecution, or custody or confinement after conviction, under the laws of the place from which the individual flees, for a crime, or attempt to commit a crime, which is a felony under the laws of the place from which the individual flees, or which, in the case of the State of New Jersey, is a high misdemeanor under the laws of such State; or
(ii) is violating a condition of probation or parole imposed under Federal or State law; or
(iii) has information that is necessary for the officer to conduct the officer’s official duties;
(B) the location or apprehension of the recipient is within such officer’s official duties; and
(C) the request is made in the proper exercise of the officer’s official duties.
(Sept. 1, 1937, ch. 896, title I, § 28, formerly § 27, as added Pub. L. 104–193, title IX, § 903(b), Aug. 22, 1996, 110 Stat. 2348; renumbered § 28, Pub. L. 105–65, title V, § 562(a)(1), Oct. 27, 1997, 111 Stat. 1416.)

CITE AS: 42 USC 1437z

§ 1437z–1. Civil money penalties against section 1437f owners
(a) In general
(1) Effect on other remedies
(2) Failure of Secretary
(b) Violations of housing assistance payment contracts for which penalty may be imposed
(1) Liable partiesThe Secretary may impose a civil money penalty under this section on—
(A) any owner of a property receiving project-based assistance under section 8 [42 U.S.C. 1437f];
(B) any general partner of a partnership owner of that property; and
(C) any agent employed to manage the property that has an identity of interest with the owner or the general partner of a partnership owner of the property.
(2) ViolationsA penalty may be imposed under this section for a knowing and material breach of a housing assistance payments contract, including the following—
(A) failure to provide decent, safe, and sanitary housing pursuant to section 8 [42 U.S.C. 1437f]; or
(B) knowing or willful submission of false, fictitious, or fraudulent statements or requests for housing assistance payments to the Secretary or to any department or agency of the United States.
(3) Amount of penalty
(c) Agency procedures
(1) EstablishmentThe Secretary shall issue regulations establishing standards and procedures governing the imposition of civil money penalties under subsection (b). These standards and procedures—
(A) shall provide for the Secretary or other department official to make the determination to impose the penalty;
(B) shall provide for the imposition of a penalty only after the liable party has received notice and the opportunity for a hearing on the record; and
(C) may provide for review by the Secretary of any determination or order, or interlocutory ruling, arising from a hearing and judicial review, as provided under subsection (d).
(2) Final orders
(A) In general
(B) Effect of review
(C) Failure to review
(3) Factors in determining amount of penaltyIn determining the amount of a penalty under subsection (b), the Secretary shall take into consideration—
(A) the gravity of the offense;
(B) any history of prior offenses by the violator (including offenses occurring before the enactment of this section);
(C) the ability of the violator to pay the penalty;
(D) any injury to tenants;
(E) any injury to the public;
(F) any benefits received by the violator as a result of the violation;
(G) deterrence of future violations; and
(H) such other factors as the Secretary may establish by regulation.
(4) Payment of penalty
(d) Judicial review of agency determination
(e) Remedies for noncompliance
(1) Judicial intervention
(A) In general
(B) Fees and expenses
(2) Nonreviewability of determination or order
(f) Settlement by Secretary
(g) Deposit of penalties
(1) In general
(2) Exception
(h) DefinitionsIn this section—
(1) the term “agent employed to manage the property that has an identity of interest” means an entity—
(A) that has management responsibility for a project;
(B) in which the ownership entity, including its general partner or partners (if applicable), has an ownership interest; and
(C) over which such ownership entity exerts effective control; and
(2) the term “knowing” means having actual knowledge of or acting with deliberate ignorance of or reckless disregard for the prohibitions under this section.
(Sept. 1, 1937, ch. 896, title I, § 29, as added Pub. L. 105–65, title V, § 562(a)(2), Oct. 27, 1997, 111 Stat. 1416.)

CITE AS: 42 USC 1437z-1

§ 1437z–2. Public housing mortgages and security interests
(a) General authorization
(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
(Sept. 1, 1937, ch. 896, title I, § 30, as added Pub. L. 105–276, title V, § 516, Oct. 21, 1998, 112 Stat. 2550.)

CITE AS: 42 USC 1437z-2

§ 1437z–3. Pet ownership in public housing
(a) Ownership conditions
(b) Reasonable requirementsThe reasonable requirements referred to in subsection (a) may include—
(1) requiring payment of a nominal fee, a pet deposit, or both, by residents owning or having pets present, to cover the reasonable operating costs to the project relating to the presence of pets and to establish an escrow account for additional costs not otherwise covered, respectively;
(2) limitations on the number of animals in a unit, based on unit size;
(3) prohibitions on—
(A) types of animals that are classified as dangerous; and
(B) individual animals, based on certain factors, including the size and weight of the animal; and
(4) restrictions or prohibitions based on size and type of building or project, or other relevant conditions.
(c) Pet ownership in public housing designated for occupancy by elderly or handicapped families
(d) Regulations
(Sept. 1, 1937, ch. 896, title I, § 31, as added Pub. L. 105–276, title V, § 526, Oct. 21, 1998, 112 Stat. 2568.)

CITE AS: 42 USC 1437z-3

§ 1437z–4. Resident homeownership programs
(a) In general
(b) Participating units
(c) Eligible purchasers
(1) Low-income requirement
(2) Other requirements
(d) Right of first refusal
(e) Protection of nonpurchasing residentsIf a public housing resident does not exercise the right of first refusal under subsection (d) with respect to the public housing unit in which the resident resides, the public housing agency—
(1) shall notify the resident residing in the unit 90 days prior to the displacement date except in cases of imminent threat to health or safety, consistent with any guidelines issued by the Secretary governing such notifications, that—
(A) the public housing unit will be sold;
(B) the transfer of possession of the unit will occur until the resident is relocated; and
(C) each resident displaced by such action will be offered comparable housing—
(i) that meets housing quality standards;
(ii) that is located in an area that is generally not less desirable than the location of the displaced resident’s housing; and
(iii) which may include—(I) tenant-based assistance, except that the requirement under this subclause regarding offering of comparable housing shall be fulfilled by use of tenant-based assistance only upon the relocation of such resident into such housing;(II) project-based assistance; or(III) occupancy in a unit owned, operated, or assisted by the public housing agency at a rental rate paid by the resident that is comparable to the rental rate applicable to the unit from which the resident is vacated;
(2) shall provide for the payment of the actual and reasonable relocation expenses of the resident to be displaced;
(3) shall ensure that the displaced resident is offered comparable housing in accordance with the notice under paragraph (1);
(4) shall provide any necessary counseling for the displaced resident; and
(5) shall not transfer possession of the unit until the resident is relocated.
(f) Financing and assistance
(g) Downpayment requirement
(1) In general
(2) Direct family contribution
(h) Ownership interests
(i) Resale
(1) Authority and limitationA homeownership program under this section shall permit the resale of a dwelling unit purchased under the program by an eligible family, but shall provide such limitations on resale as the agency considers appropriate (whether the family purchases directly from the agency or from another entity) for the agency to recapture—
(A) some or all of the economic gain derived from any such resale occurring during the 5-year period beginning upon purchase of the dwelling unit by the eligible family; and
(B) after the expiration of such 5-year period, only such amounts as are equivalent to the assistance provided under this section by the agency to the purchaser.
(2) Considerations
(j) Net proceeds
(k) Homeownership assistance
(l) Inapplicability of disposition requirements
(Sept. 1, 1937, ch. 896, title I, § 32, as added Pub. L. 105–276, title V, § 536, Oct. 21, 1998, 112 Stat. 2586.)

CITE AS: 42 USC 1437z-4

§ 1437z–5. Required conversion of distressed public housing to tenant-based assistance
(a) Identification of unitsEach public housing agency shall identify all public housing projects of the public housing agency that meet all of the following requirements:
(1) The project is on the same or contiguous sites.
(2) The project is determined by the public housing agency to be distressed, which determination shall be made in accordance with guidelines established by the Secretary, which guidelines shall take into account the criteria established in the Final Report of the National Commission on Severely Distressed Public Housing (August 1992).
(3) The project—
(A) is identified as distressed housing under paragraph (2) for which the public housing agency cannot assure the long-term viability as public housing through reasonable modernization expenses, density reduction, achievement of a broader range of family income, or other measures; or
(B) has an estimated cost, during the remaining useful life of the project, of continued operation and modernization as public housing that exceeds the estimated cost, during the remaining useful life of the project, of providing tenant-based assistance under section 1437f of this title for all families in occupancy, based on appropriate indicators of cost (such as the percentage of total development costs required for modernization).
(b) Consultation
(c) Plan for removal of units from inventories of PHAs
(1) Development
(2) ApprovalEach plan required under paragraph (1) shall—
(A) be included as part of the public housing agency plan;
(B) be certified by the relevant local official to be in accordance with the comprehensive housing affordability strategy under title I of the Housing and Community Development Act of 1992; and
(C) include a description of any disposition and demolition plan for the public housing units.
(3) Extensions
(4) Review by Secretary
(A) Failure to identify projects
(B) Erroneous identification of projectsIf the Secretary determines, based on a plan submitted under this subsection, that a public housing agency has identified 1 or more public housing projects that should not have been identified pursuant to subsection (a), the Secretary shall—
(i) require the public housing agency to revise the plan of the public housing agency under this subsection; and
(ii) prohibit the removal of any such public housing project from the inventory of the public housing agency under this section.
(d) Conversion to tenant-based assistance
(1) In general
(2) Conversion requirementsEach agency carrying out a plan under subsection (c) for removal of public housing dwelling units from the inventory of the agency shall—
(A) notify each family residing in a public housing project to be converted under the plan 90 days prior to the displacement date, except in cases of imminent threat to health or safety, consistent with any guidelines issued by the Secretary governing such notifications, that—
(i) the public housing project will be removed from the inventory of the public housing agency; and
(ii) each family displaced by such action will be offered comparable housing—(I) that meets housing quality standards; and(II) which may include—(aa) tenant-based assistance, except that the requirement under this clause regarding offering of comparable housing shall be fulfilled by use of tenant-based assistance only upon the relocation of such family into such housing;(bb) project-based assistance; or(cc) occupancy in a unit operated or assisted by the public housing agency at a rental rate paid by the family that is comparable to the rental rate applicable to the unit from which the family is vacated.
(B) provide any necessary counseling for families displaced by such action;
(C) ensure that, if the project (or portion) converted is used as housing after such conversion, each resident may choose to remain in their dwelling unit in the project and use the tenant-based assistance toward rent for that unit;
(D) ensure that each displaced resident is offered comparable housing in accordance with the notice under subparagraph (A); and
(E) provide any actual and reasonable relocation expenses for families displaced by such action.
(e) Cessation of unnecessary spending
(f) Use of budget authorityNotwithstanding any other provision of law, if a project or projects are identified pursuant to subsection (a), the Secretary may authorize or direct the transfer, to the tenant-based assistance program of such agency or to appropriate site revitalization or other capital improvements approved by the Secretary, of—
(1) in the case of an agency receiving assistance under the comprehensive improvement assistance program, any amounts obligated by the Secretary for the modernization of such project or projects pursuant to section 1437l of this title (as in effect immediately before the effective date under section 503(a) of the Quality Housing and Work Responsibility Act of 1998);
(2) in the case of an agency receiving public housing modernization assistance by formula pursuant to such section 1437l of this title, any amounts provided to the agency which are attributable pursuant to the formula for allocating such assistance to such project or projects;
(3) in the case of an agency receiving assistance for the major reconstruction of obsolete projects, any amounts obligated by the Secretary for the major reconstruction of such project or projects pursuant to section 1437c(j)(2) of this title, as in effect immediately before the effective date under section 503(a) of the Quality Housing and Work Responsibility Act of 1998; and
(4) in the case of an agency receiving assistance pursuant to the formulas under section 1437g of this title, any amounts provided to the agency which are attributable pursuant to the formulas for allocating such assistance to such project or projects.
(g) Removal by Secretary
(h) Administration
(1) In general
(2) Applicability of section 1437p
(Sept. 1, 1937, ch. 896, title I, § 33, as added Pub. L. 105–276, title V, § 537(a), Oct. 21, 1998, 112 Stat. 2588.)

CITE AS: 42 USC 1437z-5

§ 1437z–6. Services for public and Indian housing residents
(a) In general
(b) Eligible activities
Grantees under this section may use such amounts only for activities on or near the property of the public housing agency or public housing project or the property of a recipient under such Act or housing assisted under such Act that are designed to promote the self-sufficiency of public housing residents or residents of housing assisted under such Act or provide supportive services for such residents, including activities relating to—
(1) physical improvements to a public housing project or residents of housing assisted under such Act in order to provide space for supportive services for residents;
(2) the provision of service coordinators or a congregate housing services program for elderly individuals, elderly disabled individuals, nonelderly disabled individuals, or temporarily disabled individuals;
(3) the provision of services related to work readiness, including education, job training and counseling, job search skills, business development training and planning, tutoring, mentoring, adult literacy, computer access, personal and family counseling, health screening, work readiness health services, transportation, and child care;
(4) economic and job development, including employer linkages and job placement, and the start-up of resident microenterprises, community credit unions, and revolving loan funds, including the licensing, bonding, and insurance needed to operate such enterprises;
(5) resident management activities and resident participation activities; and
(6) other activities designed to improve the economic self-sufficiency of residents.
(c) Funding distribution
(1) In general
(2) Factors for distribution
Factors for distribution under paragraph (1) shall include—
(A) the demonstrated capacity of the applicant to carry out a program of supportive services or resident empowerment activities;
(B) the ability of the applicant to leverage additional resources for the provision of services; and
(C) the extent to which the grant will result in a high quality program of supportive services or resident empowerment activities.
(d) Matching requirement
The Secretary may not make any grant under this section to any applicant unless the applicant supplements amounts made available under this section with funds from sources other than this section in an amount equal to not less than 25 percent of the grant amount. Such supplemental amounts may include—
(1) funds from other Federal sources;
(2) funds from any State, local, or tribal government sources;
(3) funds from private contributions; and
(4) the value of any in-kind services or administrative costs provided to the applicant.
(e) Funding for resident organizations
(Sept. 1, 1937, ch. 896, title I, § 34, as added Pub. L. 105–276, title V, § 538(a), Oct. 21, 1998, 112 Stat. 2592; amended Pub. L. 106–377, § 1(a)(1) [title II, § 221(a)], Oct. 27, 2000, 114 Stat. 1441, 1441A–29.)

CITE AS: 42 USC 1437z-6

§ 1437z–7. Mixed-finance public housing
(a) Authority
(b) Assistance
(1) Forms
(2) Use
(c) Compliance with public housing requirements
(d) Mixed-finance projects
(1) In general
(2) Types of projects
The term includes a project that is developed—
(A) by a public housing agency or by an entity affiliated with a public housing agency;
(B) by a partnership, a limited liability company, or other entity in which the public housing agency (or an entity affiliated with a public housing agency) is a general partner, managing member, or otherwise participates in the activities of that entity;
(C) by any entity that grants to the public housing agency the right of first refusal and first option to purchase, after the close of the compliance period, of the qualified low-income building in which the public housing units exist in accordance with section 42(i)(7) of title 26; or
(D) in accordance with such other terms and conditions as the Secretary may prescribe by regulation.
(e) Structure of projects
Each mixed-finance project shall be developed—
(1) in a manner that ensures that public housing units are made available in the project, by regulatory and operating agreement, master contract, individual lease, condominium or cooperative agreement, or equity interest;
(2) in a manner that ensures that the number of public housing units bears approximately the same proportion to the total number of units in the mixed-finance project as the value of the total financial commitment provided by the public housing agency bears to the value of the total financial commitment in the project, or shall not be less than the number of units that could have been developed under the conventional public housing program with the assistance, or as may otherwise be approved by the Secretary; and
(3) in accordance with such other requirements as the Secretary may prescribe by regulation.
(f) Taxation
(1) In general
A public housing agency may elect to exempt all public housing units in a mixed-finance project—
(A) from the provisions of section 1437d(d) of this title, and instead subject such units to local real estate taxes; and
(B) from the finding of need and cooperative agreement provisions under section 1437c(e)(1)(ii) and 1437c(e)(2) of this title, but only if the development of the units is not inconsistent with the jurisdiction’s comprehensive housing affordability strategy.
(2) Low-income housing tax credit
(g) Use of savings
(h) Effect of certain contract terms
(Sept. 1, 1937, ch. 896, title I, § 35, as added Pub. L. 105–276, title V, § 539[(a)], Oct. 21, 1998, 112 Stat. 2594.)

CITE AS: 42 USC 1437z-7

§ 1437z–8. Collection of information on tenants in tax credit projects
(a) In general
(b) Standards
(c) Public availability
(d) Authorization of appropriations
(Sept. 1, 1937, ch. 896, title I, § 36, as added Pub. L. 110–289, div. B, title VIII, § 2835(d), July 30, 2008, 122 Stat. 2874.)

CITE AS: 42 USC 1437z-8

§ 1437z–9. Data exchange standards for improved interoperability
(a) Designation
The Secretary shall, in consultation with an interagency work group established by the Office of Management and Budget, and considering State government perspectives, designate data exchange standards to govern, under this chapter—
(1) necessary categories of information that State agencies operating related programs are required under applicable law to electronically exchange with another State agency; and
(2) Federal reporting and data exchange required under applicable law.
(b) Requirements
The data exchange standards required by subsection (a) shall, to the maximum extent practicable—
(1) incorporate a widely accepted, nonproprietary, searchable, computer-readable format, such as the eXtensible Markup Language;
(2) contain interoperable standards developed and maintained by intergovernmental partnerships, such as the National Information Exchange Model;
(3) incorporate interoperable standards developed and maintained by Federal entities with authority over contracting and financial assistance;
(4) be consistent with and implement applicable accounting principles;
(5) be implemented in a manner that is cost-effective and improves program efficiency and effectiveness; and
(6) be capable of being continually upgraded as necessary.
(c) Rules of construction
(Sept. 1, 1937, ch. 896, title I, § 37, as added Pub. L. 114–201, title V, § 503(a), July 29, 2016, 130 Stat. 811.)

CITE AS: 42 USC 1437z-9

§ 1437z–10. Small public housing agencies
(a) DefinitionsIn this section:
(1) Housing voucher program
(2) Small public housing agencyThe term “small public housing agency” means a public housing agency—
(A) for which the sum of the number of public housing dwelling units administered by the agency and the number of vouchers under section 1437f(o) of this title administered by the agency is 550 or fewer; and
(B) that predominantly operates in a rural area, as described in section 1026.35(b)(2)(iv)(A) of title 12, Code of Federal Regulations.
(3) Troubled small public housing agency
(b) Applicability
(c) Program inspections and evaluations
(1) Public housing projects
(A) Frequency of inspections by Secretary
(B) Standards
(2) Housing voucher program
(3) Troubled small public housing agencies
(A) Public housing program
(B) Housing voucher program
(C) Appeals
(i) Establishment
(ii) Official
(D) Corrective action agreement
(i) Agreement required
(ii) Terms of agreementA corrective action agreement entered into under clause (i) shall—(I) have a term of 1 year, and shall be renewable at the option of the Secretary;(II) provide, where feasible, for technical assistance to assist the public housing agency in curing its deficiencies;(III) provide for—(aa) reconsideration of the designation of the small public housing agency as a troubled small public housing agency not less frequently than annually; and(bb) termination of the agreement when the Secretary determines that the small public housing agency is no longer a troubled small public housing agency; and(IV) provide that in the event of substantial noncompliance by the small public housing agency under the agreement, the Secretary may—(aa) contract with another public housing agency or a private entity to manage the public housing of the troubled small public housing agency;(bb) withhold funds otherwise distributable to the troubled small public housing agency;(cc) assume possession of, and direct responsibility for, managing the public housing of the troubled small public housing agency;(dd) petition for the appointment of a receiver, in accordance with section 1437d(j)(3)(A)(ii) of this title; and(ee) exercise any other remedy available to the Secretary in the event of default under the public housing annual contributions contract entered into by the small public housing agency under section 1437c of this title.
(E) Emergency actions
(d) Reduction of administrative burdens
(1) Exemption
(2) Streamlined procedures
(Sept. 1, 1937, ch. 896, title I, § 38, as added Pub. L. 115–174, title II, § 209(a), May 24, 2018, 132 Stat. 1313.)

CITE AS: 42 USC 1437z-10