Sec. 4. Rent reform demonstration project for small public housing agencies
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In this section, the following definitions shall apply: The term extremely low-income family means a family whose income does not exceed 30 percent of the median income for the area, as determined by the Secretary with adjustments for smaller and larger families, except the Secretary may establish income ceilings higher or lower than 30 percent of the median income for the area on the basis of the Secretary’s findings that such variations are necessary because of unusually high or low family incomes in the area.
The term income shall have the meaning given that term by section 3(b)(4) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)(4)). The term low-income family means a family whose income does not exceed 80 percent of the median income for the area, as determined by the Secretary with adjustments for smaller and larger families, except the Secretary may establish income ceilings higher or lower than 80 percent of the median incomes for the area on the basis of the Secretary’s findings that such variations are necessary because of unusually high or low family incomes in the area.
The term median income for the area means the median income of all families in a geographic area, as determined by the Secretary. The term Secretary means the Secretary of Housing and Urban Development. The term small public housing agency has the same meaning as in section 37(a) of the United States Housing Act of 1937, as added by this Act. The term very low-income family means a family whose income does not exceed 50 percent of the median income for the area, as determined by the Secretary with adjustments for smaller and larger families, except the Secretary may establish income ceilings higher or lower than 50 percent of the median income for the area on the basis of the Secretary’s findings that such variations are necessary because of unusually high or low family incomes in the area.
The Secretary shall carry out a demonstration project to examine how various methods of determining rent in public housing affect— the administrative burden on small public housing agencies; and the residents of public housing. The Secretary shall select small public housing agencies to participate in the demonstration project from among small public housing agencies that request to participate in the project. The Secretary shall select not more than 20 percent of the total number of small public housing agencies to participate in the demonstration project.
The Secretary shall select small public housing agencies representing a broad range of geographic areas and urban and rural locations. A small public housing agency participating in the demonstration project shall select 1 or more of the following methods for establishing a family’s rent contribution for a dwelling unit in public housing: A tiered system under which the amount of initial rent is as follows: For an extremely low-income family, an amount equal to 30 percent of 10 percent of the median income for the area.
For a very low-income family, an amount equal to 30 percent of 30 percent of the median income for the area. For a low-income family, an amount equal to 30 percent of 50 percent of the median income for the area. The rent determined in accordance with subparagraph
(A)shall be adjusted annually by the small public housing agency on the basis of changes in area median incomes and shall apply to the continued occupancy of an assisted family. A family assisted under a tiered system established under subparagraph
(A)whose income exceeds 80 percent of the median income for the area shall pay a rent equal to the higher of 30 percent of 80 percent of the median income for the area or the market rent for the unit as determined by the small public housing agency. A method under which rent is established in an amount that varies between 26 to 28 percent of a family’s income, based on family characteristics as determined by the small public housing agency. The rent determined in accordance with subparagraph
(A)shall be adjusted annually between income recertifications on the basis of factors selected by a small public housing agency that are most relevant to the status of a resident. In establishing rents in accordance with subparagraph (A), a small public housing agency may impose a minimum rent. A small public housing agency may use 1 or more of the above methods for determining rents in combination with the method for establishing rents pursuant to section 3 of the United States Housing Act of 1937 ( 42 U.S.C. 1437a ). Reviews of family income under paragraphs (1), (2), and
(3)of subsection
(d)shall be made at least once every 5 years, except a family may request a recertification and adjustment in rent at any time if the family income has changed by an amount established by the small public housing agency. In determining family income, the small public housing agency may use the income of the family as determined by the small public housing agency for the preceding year. A small public housing agency shall adopt a hardship policy, comparable to the policy contained in section 3(a)(3)(B) of the United States Housing Act of 1937 ( 42 U.S.C. 1437a(a)(3)(B) ), for use in connection with a minimum rent imposed under subsection (d)(2)(C) and in connection with rents established under paragraphs (1), (2), and
(3)of subsection (d). Not later than 5 years after the date of enactment of this Act, the Secretary shall submit to Congress a report on the results of the demonstration project carried out under this section. The report submitted under paragraph
(1)shall contain recommendations that Congress take 1 or more of the following actions: Continue the demonstration project for a specified period of time. Expand the number of participants in the demonstration project. Apply the terms of the demonstration project to all small public housing agencies. Change any of the terms of the demonstration project. Terminate the demonstration project. The Secretary shall submit to Congress recommendations for permanent legislation that implements rent reform for small public housing agencies— with the report required under paragraph (1); or before the date on which the Secretary submits the report required under paragraph (1).
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Sec. 4
Rent reform demonstration project for small public housing agencies
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