Sec. 6. Housing stock quality requirements
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Section 8 of the United States Housing Act of 1937 ( 42 U.S.C. 1437f ) is amended by inserting after subsection
(v)the following new subsection: Any entity receiving housing assistance payments under this section shall maintain decent, safe, and sanitary conditions, as determined by the Secretary, and comply with any standards under applicable State or local laws, rules, ordinances, or regulations relating to the physical condition of any insured or non-insured property covered under a housing assistance payment contract for project-based assistance. The Secretary shall take action under paragraph
(3)when a multifamily housing project with a housing assistance payment contract under this section or a contract with the Department of Housing and Urban Development for similar project-based assistance— receives a failing score on a physical inspection by the Department; or fails to certify in writing to the Secretary within 3 days that all severe health or safety deficiencies identified at the project by the inspector have been corrected. The requirements under this paragraph shall apply to insured and non-insured projects with assistance attached to the dwelling units under this section. Within 15 days of the issuance of the Real Estate Assessment Center inspection, the Secretary shall provide the owner with a notice of default that shall include a specified timetable, determined by the Secretary, for correcting all deficiencies. The Secretary shall provide a copy of the notice of default to the tenants of the property, the local government for the jurisdiction within which the property is located, any mortgagees, and any contract administrator. If the owner appeals the notice of default and the appeal results in a passing Uniform Physical Condition Standards score for the property, the Secretary may withdraw the notice of default. If the owner fails to fully correct all deficiencies identified in the notice of default by the end of the time period for correcting such deficiencies specified in the notice, the Secretary shall, in consultation with the tenant organization, one or more of the following actions, and provide additional notice of those actions to the owner and the parties specified in paragraph (3)(B) to improve property conditions and preserve housing assistance: Take any regulatory or contractual remedies available as deemed necessary and appropriate by the Secretary to improve property conditions, protect tenants from displacement and harm, and preserve the housing assistance. Require immediate replacement of the project management with a management agent approved by the Secretary. Abate the section 8 contract, including partial abatement, as determined by the Secretary, until all deficiencies have been corrected. Pursue transfer of the project to an owner approved by the Secretary, in consultation with the tenant organization, under established procedures, who shall be obligated to promptly make all required repairs and to accept renewal of the assistance contract if such renewal is offered, in conjunction with the appropriate public housing agency or other local entity. Transfer the existing section 8 contract to another project or projects and owner or owners who have demonstrated financial and organizational capacity to rehabilitate the project, in consultation with tenants and the appropriate public housing agency. Pursue exclusionary sanctions, including suspensions or debarments from Federal programs. Relocate tenants while providing the same level of housing assistance. Seek judicial appointment of a receiver to manage the property and cure all project deficiencies or seek a judicial order of specific performance requiring the owner to cure all project deficiencies. Cooperate with receivership efforts by State or local governments or lenders which aim to improve the property conditions and preserve the project-based housing assistance. Work with the owner, lender, tenants, or other related party to stabilize the property in an attempt to preserve the property through compliance, transfer of ownership, or an infusion of capital or other resources. Effective upon the expiration of the 12-month period beginning on the date of the enactment of this subsection, the Secretary shall prohibit any increases in rents for dwelling units in the property until the owner fully corrects all deficiencies identified in the notice of default or demonstrates an ability to financially address conditions by— providing a rehabilitation plan, developed in consultation with the tenants and approved by the Secretary; and separately demonstrating a written and enforceable commitment by the tenants and the Secretary that any increases will address the conditions of the property. The Secretary shall take appropriate steps to ensure that project-based contracts for rental assistance remain in effect, subject to the exercise of contractual abatement remedies to assist relocation of tenants for major threats to health and safety, taken after written notice to the affected tenants. To the extent the Secretary determines, in consultation with the tenants and the local government, that a property is not feasible for continued rental assistance payments under such section 8 or other programs, based on consideration of— the costs of rehabilitating and operating the property and all available Federal, State, and local resources, including rent adjustments under section 524 of the Multifamily Assisted Housing Reform and Affordability Act of 1997 ( 42 U.S.C. 1437f note), and environmental conditions that cannot be remedied in a cost-effective fashion, the Secretary may contract for project-based rental assistance payments with an owner or owners of other housing properties, and to the maximum extent practicable, ensure that the project-based rental assistance is available to tenants from the originating site. The Secretary shall submit a report to the Committees on Financial Services of the House of Representatives and Banking, Housing, and Urban Affairs of the Senate semi-annually identifying all properties covered by this subsection that received a failing physical inspection score or have received an unsatisfactory management and occupancy review during the 36-month period ending upon submission of such report. Each such report shall include— identification of the enforcement actions being taken to address such conditions leading to such score at each such property, including imposition of civil money penalties and termination of subsidies, and identification of properties that have such conditions multiple times; identification of actions that the Department of Housing and Urban Development is taking to protect tenants of such identified properties; and any recommendations for administrative or legislative actions to further improve the living conditions at such properties. The first report required under subparagraph
(A)shall be submitted not later than 30 days after the date of the enactment of this subsection, and the second report shall be submitted within 180 days of the submission of the first report. .
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Sec. 6
Housing stock quality requirements
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