Sec. 3. Small public housing agencies
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Title I of the United States Housing Act of 1937 ( 42 U.S.C. 1437 et seq. ) is amended by adding at the end the following: In this section, the following definitions shall apply: The term housing voucher program means a program for tenant-based assistance under section 8. The term small public housing agency means a public housing agency for which the sum of the number of public housing dwelling units administered by the agency and the number of vouchers under section 8(o) administered by the agency is 550 or fewer. A public housing agency that qualifies as an eligible small public housing agency but subsequently fails to meet the qualification criterion in subsection
(a)shall remain an eligible small public housing agency for 3 additional years to provide for a transition to noneligible status in order to avoid disruption in the plans and projects undertaken by the agency. The term troubled small public housing agency means a small public housing agency designated by the Secretary as a troubled small public housing agency under subsection (c)(4). Except as otherwise provided in this section, a small public housing agency shall be subject to the same requirements as a public housing agency. The Secretary shall carry out an inspection of the physical condition of a small public housing agency’s public housing projects not more frequently than once every 3 years, unless the agency has been designated by the Secretary as troubled small public housing agency based on deficiencies in the physical condition of its public housing projects. A small public housing agency shall not be subject to section 6(f)(3), and the Secretary may not otherwise require the small public housing agency to inspect its public housing units. The Secretary shall apply to small public housing agencies the same standards for the acceptable condition of public housing projects that apply to projects assisted under section 8. The Secretary shall determine the financial condition of a small public housing agency’s public housing program solely on the basis of the ratio of current assets to current liabilities. A ratio of at least 1 shall result in a determination that the financial condition of a small public housing agency is acceptable. Except as provided in clause (ii), the Secretary shall determine the management condition of a small public housing agency’s public housing program solely on the basis of the ratio of vacant unit months to eligible unit months. Except as provided in subclause (III), a ratio of not more than 10 percent shall result in a determination that the management condition of a small public housing agency is acceptable. In determining the management condition of a program or project of a small public housing agency with an extremely low number of public housing units, the Secretary may apply a ratio or standard that is different than the standard under this subparagraph. In determining the management condition of a small public housing agency’s public housing program, the Secretary shall take into consideration a demonstration by the small public housing agency that its inability to lease an adequate number of units is a result of changes in market conditions. A small public housing agency administering assistance under section 8(o) shall make periodic physical inspections of each assisted dwelling unit not less frequently than once every 3 years, to determine whether the unit is maintained in accordance with the requirements under section 8(o)(8)(A). The Secretary shall evaluate the management of a voucher program of a small public housing agency solely on the basis of the lease-up rate or the budget utilization rate of the small public housing agency. A lease-up rate or budget utilization rate of at least 90 percent shall result in a determination that the management of the voucher program is acceptable. The Secretary shall designate a small public housing agency as a high-performing agency if the Secretary determines that the small public housing agency exceeds the criteria for acceptability established under paragraphs
(1)and
(2)by an extent established by the Secretary, by rule. Notwithstanding any other provision of law, the Secretary may designate a small public housing agency as a troubled small public housing agency with respect to the public housing program of the small public housing agency only if the Secretary determines that the agency— has failed— to maintain its public housing units in a satisfactory physical condition, based upon an inspection conducted by the Secretary; and to correct deficiencies before the date that is 90 days after the date on which the Secretary verifies the inspection results; does not have at the end of its fiscal year an acceptable ratio of current assets to current liabilities, as determined under paragraph (1)(B); has failed to maintain an acceptable average ratio of vacant unit months to eligible unit months during any calendar year, as determined under paragraph (1)(C), and that the failure is not the result of changes in market conditions; or has failed to account for its revenues and expenses, misappropriated Federal funds, or otherwise failed to comply with applicable Federal law. Notwithstanding any other provision of law, the Secretary may designate a small public housing agency as a troubled small public housing agency with respect to the housing voucher program of the small public housing agency only if the Secretary determines that the agency— has failed to comply with the inspection requirements under paragraph (2)(A); during the calendar year has failed to maintain an acceptable lease-up rate or budget utilization rate, as determined under paragraph (2)(B); or has failed to account for its revenues and expenses, misappropriated Federal funds, or otherwise failed to comply with applicable Federal law. The Secretary shall establish an appeals process under which a small public housing agency may dispute a determination of deficiency. The appeals process established under clause
(i)shall provide for a decision by an official who has not been involved, and is not subordinate to a person who has been involved, in the original determination of deficiency. Not later than 60 days after the date on which a small public housing agency is designated as a troubled public housing agency, the Secretary and the small public housing agency shall enter in to a corrective action agreement under which the small public housing agency shall undertake actions to correct the deficiencies upon which the designation is based. A corrective action agreement entered into under clause
(i)shall— have a term of 1 year, and shall be renewable at the option of the Secretary; provide, where feasible, for technical assistance to assist the public housing agency in curing its deficiencies; provide for— reconsideration of the designation of the small public housing agency as a troubled small public housing agency not less frequently than annually; and termination of the agreement when the Secretary determines that the small public housing agency is no longer a troubled small public housing agency; and provide that in the event of substantial noncompliance by the small public housing agency under the agreement, the Secretary may— contract with another public housing agency or a private entity to manage the public housing of the troubled small public housing agency; withhold funds otherwise distributable to the troubled small public housing agency; assume possession of, and direct responsibility for, managing the public housing of the trouble small public housing agency; petition for the appointment of a receiver, in accordance with section 6(j)(3)(A)(ii); and 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 5. Nothing in this paragraph may be construed to prohibit the Secretary from taking any emergency action necessary to protect Federal financial resources or the health or safety of residents of public housing projects. Notwithstanding any other provision of law, and except as otherwise provided in this section, the Secretary may not require a small public housing agency to submit any report, plan, or other information with respect to the public housing units, projects, or programs of the small public housing agency if the report, plan, or other information is not required to be submitted by the owner of a project assisted under section 8 that is covered by a mortgage insured by the Secretary. A small public housing agency shall submit to the Secretary the plan required by section 7 in order to designate occupancy in public housing units in accordance with section 7. For purposes of determining the benefits or funding available to a small public housing agency, the small public housing agency shall be deemed to be in compliance with a requirement under Federal law to submit a report, plan, or other information with respect to the public housing units, projects, or programs of the small public housing agency if the small public housing agency submits the reports, plans, or other information required under subparagraphs
(A)and (B). Notwithstanding any other provision of law, a small public housing agency may elect to comply with the requirements under section 12(c)(3) through the use of tenant certifications. The Secretary may not impose any administrative burden or requirement with respect to the monitoring of compliance with section 12(c) on a small public housing agency that has made an election under subparagraph (A), except a requirement to obtain tenant certifications and make the tenant certifications available to the Secretary. For purposes of this subparagraph, the term administrative burden or requirement includes a requirement to review or verify information contained in a tenant certification. A small public housing agency may not make an election under subparagraph
(A)if the Secretary determines that there is substantial noncompliance by the tenants at the small public housing agency with the requirements of section 12(c). Section 3 of the Housing and Urban Development Act of 1968 ( 12 U.S.C. 1701u ) shall apply to a small public housing agency only to the extent that such section 3 applies to the owner of a project assisted under section 8 of this Act. At the request of a small public housing agency or a public housing agency that administers not more than 400 public housing dwelling units, the Secretary shall exempt the small public housing agency or public housing agency from any asset management requirement otherwise imposed by the Secretary on public housing agencies. Notwithstanding any other provision of law, a small public housing agency shall be exempt from any environmental review requirements with respect to a development or modernization project having a total cost of not more than $100,000. The Secretary shall, by rule, establish streamlined procedures for environmental reviews of small public housing agency development and modernization projects having a total cost of more than $100,000. Notwithstanding any other provision of law and subject to paragraph (2), a small public housing agency may— combine funds provided to the small public housing agency for voucher assistance under section 8(o), from the Capital Fund, and from the Operating Fund; and use the funds combined under subparagraph
(A)for any activity authorized under section 8(o) or subsection
(d)or
(e)of section 9. In using funds combined under paragraph (A), a small public housing agency shall assist substantially the same number of low-income families, with a comparable mix of families by family size, as it did in the year preceding its qualification as a small public housing agency, with appropriate adjustments made by the Secretary on the basis of any increase or decrease in the number of vouchers or units assisted. With respect to a program carried out by a small public housing agency under section 8(o)— section 8(o)(13)(B) shall be applied by substituting 50 percent for 20 percent ; and section 8(o)(13)(C) shall not apply. A small public housing agency may, subject to the availability of appropriations and approval by the Secretary, convert all or a portion of the public housing units of the small public housing agency to project-based voucher assistance under section 8(o)(13) or to project-based assistance under section 8. Subparagraphs (B), (C), and
(D)of section 8(o)(13) shall not apply to public housing units converted to project-based voucher assistance under paragraph (1). Rents for public housing units converted to project-based voucher assistance under paragraph
(1)shall be established in accordance with section 8(o)(13)(H), without regard to whether or not a project is located in a qualified census tract. Initial rents for public housing units converted to section 8 project-based assistance under paragraph
(1)shall be established, at the option of the small agency— at the comparable rent for unassisted units in the area; or on a budget basis. In approving a budget-based rent under clause (i)(II), the Secretary shall take into account the need to provide for sufficient replacement reserves to offset a reduction or elimination of capital subsidy funds for a project and for debt service on loans to fund capital improvements. The Secretary shall annually adjust the rents established under subparagraph
(A)using an operating cost adjustment factor established by the Secretary (which shall not result in a negative adjustment) or, at the request of the owner, on a budget basis. The term of any contract for assistance payments pursuant to this paragraph shall be the longer of 20 years or the remaining period during which the project would have been required to be operated as public housing (as calculated immediately prior to the conversion). Except as otherwise provided in this subsection, a project converted under paragraph
(1)shall be subject to the provisions of section 524 of the Multifamily Assisted Housing Reform and Affordability Act of 1997 ( 42 U.S.C. 1437f note). At the time of conversion of a project under paragraph (1), the Secretary shall release the project from any applicable annual contributions contract and release and cancel of record all deeds of trust and other instruments encumbering the project in favor of the Federal Government. Upon conversion, a project shall no longer be subject to Federal laws and requirements applicable solely to public housing projects. Administrative oversight of public housing units converted to section 8 project-based assistance under paragraph
(1)shall be transferred to the Office of Housing within the Department of Housing and Urban Development. Upon conversion of a project under paragraph (1), the Secretary shall reprogram to the appropriate section 8 account— an amount of public housing Operating Fund budget authority equal to that which would otherwise be allocated to the converted project; and an amount of public housing Capital Fund budget authority otherwise allocable to the small public housing agency with respect to the converted project. During the first year of each 5-year period for which a small public housing agency qualifies for the addition of a replacement housing factor under section 905.10(i) of title 24, Code of Federal Regulations, the Secretary shall pay to the small public housing agency the portion of the total amount that the Secretary plans to make available to the small public housing agency from the Capital Fund established under section 9(d) during that 5-year period that is attributable to the addition of the replacement housing factor. . Section 5A of the United States Housing Act of 1937 ( 42 U.S.C. 1437c–1 ) is amended— in subsection (b), by striking paragraph (3); in subsection (e), by striking paragraph (4); and in subsection (f), by striking paragraph (5).
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- 42 USC 1437c–1
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