42 USC 1437l: Public and Indian housing modernization
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42 USC 1437l: Public and Indian housing modernization Text contains those laws in effect on January 4, 1995
From Title 42-THE PUBLIC HEALTH AND WELFARECHAPTER 8-LOW-INCOME HOUSINGSUBCHAPTER I-GENERAL PROGRAM OF ASSISTED HOUSING
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§1437l. Public and Indian housing modernization

(a) Purposes

It is the purpose of this section to provide assistance-

(1) to improve the physical condition of existing public housing projects;

(2) to upgrade the management and operation of such projects;

(3) to assess the risks of lead-based paint poisoning through the use of professional risk assessments that include dust and soil sampling and laboratory analysis in all projects constructed before 1980 that are, or will be, occupied by families;

(4) to take effective interim measures to reduce and contain the risks of lead-based paint poisoning recommended in such professional risk assessments; and

(5) the costs of testing, interim containment, professional risk assessments and abatement of lead are eligible modernization expenses. The costs of professional risk assessment are eligible modernization expenses whether or not they are incurred in connection with insurance and costs for such assessments that were incurred or disbursed in fiscal year 1991 from other accounts shall be paid or reimbursed from modernization funds in fiscal year 1992.1


in order to assure that such projects continue to be available to serve low-income families.

(b) Authorization for assistance payments; duration of grants contract

(1) The Secretary may make available and contract to make available financial assistance (in such amounts as are authorized pursuant to section 1437c(c) of this title and as may be approved in appropriations Acts) to public housing agencies for the purpose of improving the physical condition of existing low-rent public housing projects and for upgrading the management and operation of such projects to the extent necessary to maintain such physical improvements.

(2) The Secretary may make contributions (in the form of grants) to public housing agencies under this section. The contract under which the contributions shall be made shall specify that the terms and conditions of the contract shall remain in effect for a 20-year period for any project receiving the benefit of a grant under the contract.

(c) Low-rent housing projects qualifying for assistance

Assistance under subsection (b) of this section may be made available only for buildings of low-rent housing projects-

(1) which projects are owned by public housing agencies;

(2) which projects are operated as rental housing projects and assisted under section 1437c of this title or section 1437g of this title;

(3) which projects are not assisted under section 1437f of this title;

(4) which buildings are not assisted under section 1437c(j)(2) of this title; and

(5) which projects meet such other requirements consistent with the purposes of this section as the Secretary may prescribe.

(d) Application for assistance

Except as provided in subsection (f)(4) 2 of this section, no assistance may be made available under subsection (b) of this section to a public housing agency that owns or operates less than 250 public housing dwelling units unless the Secretary has approved an application from the public housing agency which has been developed in consultation with appropriate local officials and with tenants of the housing projects for which assistance is requested. Such application shall contain at least-

(1) a comprehensive assessment of (A) the current physical condition of each project for which assistance is requested, and (B) the physical improvements necessary for each such project to meet the standards established by the Secretary pursuant to subsection (j) of this section;

(2) a comprehensive assessment of the improvements needed to upgrade the management and operation of each such project so that decent, safe, and sanitary living conditions will be provided in such projects; such assessment shall include at least an identification of needs related to-

(A) the management, financial, and accounting control systems of the public housing agency which are related to each project eligible for assistance under this section;

(B) the adequacy and qualifications of personnel employed by such public housing agency (in the management and operation of such projects) for each category of employment; and

(C) the adequacy and efficacy of-

(i) tenant programs and services in such projects;

(ii) the security of each such project and its tenants;

(iii) policies and procedures of the public housing agency for the selection and eviction of tenants in such projects; and

(iv) other policies and procedures of such agency relating to such projects, as specified by the Secretary; and


(3) a plan for making the improvements and for meeting the needs, described in paragraphs (1) and (2); such plan shall include at least-

(A) a schedule of those actions which are to be completed, over a period of not greater than 5 years from the date of approval of such application by the Secretary, within each 12-month period covered by such plan and which are necessary-

(i) to make the improvements, described in paragraph (1)(B), for each project for which assistance is requested, and

(ii) to upgrade the management and operation of such projects as described in paragraph (3); 3 and


(B) the estimated cost of each of the actions described in subparagraph (A).

(e) Comprehensive plans; contents; approval

(1) No financial assistance may be made available under this section to a public housing agency that owns or operates 250 or more public housing dwelling units unless the Secretary approves (or has approved before February 5, 1988) a 5-year comprehensive plan submitted by the public housing agency, except that the Secretary may provide such assistance if it is necessary to correct conditions that constitute an immediate threat to the health or safety of tenants. The comprehensive plan shall contain-

(A) a comprehensive assessment of-

(i) the current physical condition of each public housing project owned or operated by the public housing agency;

(ii) the physical improvements necessary for each such project to permit the project-

(I) to be rehabilitated to a level at least equal to the modernization standards specified in the Modernization Handbook of the Department of Housing and Urban Development in effect on February 5, 1988, as well as the modernization standards established by the Secretary and in effect at the time of the preparation of the comprehensive plan; and

(II) to comply with life-cycle cost-effective energy conservation performance standards established by the Secretary to reduce operating costs over the estimated life of the building; and


(iii) the replacement needs of equipment systems and structural elements that will be required to be met (assuming routine and timely maintenance is performed) during the 5-year period covered by the comprehensive plan;


(B) a comprehensive assessment of the improvements needed to upgrade the management and operation of the public housing agency and of each such project so that decent, safe, and sanitary living conditions will be provided such projects, which assessment shall include at least an identification of needs related to-

(i) the management, financial, and accounting control systems of the public housing agency that are related to such projects;

(ii) the adequacy and qualifications of personnel appropriate to be employed by the public housing agency (in the management and operation of such projects) for each significant category of employment; and

(iii) the improvement of the efficacy of-

(I) tenant programs and services in such projects;

(II) the security of each such project and its tenants;

(III) policies and procedures of the public housing agency for the selection and eviction of tenants in such projects; and

(IV) other policies and procedures of the public housing agency relating to such projects, as specified by the Secretary;


(C) an analysis, made on a project-by-project basis in accordance with standards and criteria prescribed by the Secretary, demonstrating that completion of the improvements and replacements identified under subparagraphs (A) and (B) will reasonably ensure the long-term physical and social viability of each such project at a reasonable cost;

(D) an action plan for making the improvements and replacements identified under subparagraphs (A) and (B) that are determined under the analysis described in subparagraph (C) to reasonably ensure long-term viability of each such project at a reasonable cost, which action plan shall include at least a schedule, in order of priority established by the public housing agency, of the actions that are to be completed over a period of 5 years from the date of approval of the comprehensive plan by the Secretary (or any longer period reasonably needed to make the improvements and replacements, considering the scope of the improvements and replacements and the amount of funding provided) and that are necessary-

(i) to make the improvements and replacements identified under subparagraph (A) for each project expected to receive capital improvements or replacements (with priority to improvements and replacements required to correct any life threatening condition); and

(ii) to upgrade the management and operation of the public housing agency and its public housing projects as described in subparagraph (B);


(E) a statement, to be signed by the chief local government official (or Indian tribal official, if appropriate), certifying that-

(i) the comprehensive plan was developed by the public housing agency in consultation with appropriate local government officials (or Indian tribal officials) and with tenants of the housing projects (or tenants of the Indian housing projects) eligible for assistance under this section, which shall include at least one public hearing that shall be held prior to the initial adoption of any plan by the public housing agency for use of such assistance, and afford tenants and interested parties an opportunity to summarize their priorities and concerns, to ensure their due consideration in the planning process of the public housing agency; and

(ii) the comprehensive plan is consistent with the assessment of the community of its low-income housing needs and that the unit of general local government (or Indian tribe) will cooperate in the provision of tenant programs and services (as defined in section 1437a(c)(2) of this title);


(F) a statement, to be signed by the chief public housing official, certifying that the public housing agency will carry out the comprehensive plan in conformity with title VI of the Civil Rights Act of 1964 [42 U.S.C. 2000d et seq.], title VIII of the Act of April 11, 1968 (commonly known as the Civil Rights Act of 1968) [42 U.S.C. 3601 et seq.], and section 794 of title 29;

(G) a preliminary estimate of the total cost of the items identified in subparagraphs (A) and (B), including a preliminary estimate of the funds that will be required during each year covered by the comprehensive plan to accomplish the work pursuant to the action plan; and

(H) such other information as the Secretary may require.


(2)(A) The Secretary shall approve a comprehensive plan unless-

(i) the comprehensive plan is incomplete in significant matters;

(ii) on the basis of available significant facts and data pertaining to the physical and operational condition of the public housing projects of the public housing agency or the management and operations of the public housing agency, the Secretary determines that the identification by the public housing agency of needs is plainly inconsistent with such facts and data;

(iii) on the basis of the comprehensive plan, the Secretary determines that the action plan described in paragraph (1)(D) is plainly inappropriate to meeting the needs identified in the comprehensive plan, or that the public housing agency has failed to demonstrate that completion of improvements and replacements identified under subparagraphs (A) and (B) of paragraph (1) will reasonably ensure long-term viability of one or more public housing projects to which they relate at a reasonable cost; or

(iv) there is evidence available to the Secretary that tends to challenge in a substantial manner any certification contained in the comprehensive plan.


(B) The comprehensive plan shall be considered to be approved, unless the Secretary notifies the public housing agency in writing within 75 calendar days of submission that the Secretary has disapproved the comprehensive plan as submitted, indicating the reasons for disapproval and modifications required to make the comprehensive plan approvable.

(3)(A) Each public housing agency that owns or operates 250 or more public housing dwelling units shall, after being advised by the Secretary of the estimated assistance it will receive under this section in any fiscal year, submit to the Secretary, at a date determined by the Secretary, an annual statement of the activities and expenditures projected to be undertaken, in whole or in part, by such assistance during the 12-month period immediately following the execution of the contract for such assistance. As long as the activities and expenditures are consistent with the approved plan, the public housing agency shall have total discretion in expending assistance for any activity or work set forth in the plan. The annual statement shall include a certification by the public housing agency that the proposed activities and expenditures are consistent with the approved comprehensive plan of the public housing agency. The annual statement also shall include a certification that the public housing agency has provided the tenants of the public housing affected by the planned activities the opportunity to review the annual statement and comment on it, and that such comments have been taken into account in formulating the annual statement as submitted to the Secretary.

(B) A public housing agency may propose an amendment to its comprehensive plan under paragraph (1) in any annual statement. Any such proposed amendment shall be reviewed in accordance with paragraph (2), and shall include a certification that (i) the proposed amendment has been made publicly available for comment prior to its submission; (ii) affected tenants have been given sufficient time to review and comment on it; and (iii) such comments have been taken into consideration in the preparation and submission of the amendment. A public housing agency shall have a right to amend its comprehensive plan and related statements to extend the time for performance whenever the Secretary has not provided the amount of assistance set forth in the plan or has not provided the assistance in a timely manner.

(C) The Secretary shall approve the annual statement and any amendment to it or the comprehensive plan unless the Secretary determines that the statement or amendment is plainly inconsistent with the activities specified in the comprehensive plan. The statement or amendment shall be considered to be approved, unless the Secretary notifies the public housing agency in writing before the expiration of the 75-day period following its submission that the Secretary has disapproved it as submitted, indicating the reasons for disapproval and the modifications required to make it approvable.

(4)(A) Each public housing agency that owns or operates 250 or more public housing dwelling units shall submit to the Secretary, on a date determined by the Secretary, a performance and evaluation report concerning the use of funds made available under this section. The report of the public housing agency shall include an assessment by the public housing agency of the relationship of such use of funds made available under this section, as well as the use of other funds, to the needs identified in the comprehensive plan of the public housing agency and to the purposes of this section. The public housing agency shall certify that the report has been made available for review and comment by affected tenants prior to its submission to the Secretary.

(B) The Secretary shall, at least on an annual basis, make such reviews as may be necessary or appropriate to determine whether each public housing agency receiving assistance under this section-

(i) has carried out its activities under this section in a timely manner and in accordance with its comprehensive plan;

(ii) has a continuing capacity to carry out its comprehensive plan in a timely manner;

(iii) has satisfied, or has made reasonable progress towards satisfying, such performance standards as shall be prescribed by the Secretary, and has made reasonable progress in carrying out modernization projects approved under this section.


(C) Each public housing agency that owns or operates 250 or more public housing dwelling units and receives assistance under this section shall have an audit made in accordance with chapter 75 of title 31. The Secretary, the Inspector General of the Department of Housing and Urban Development, and the Comptroller General of the United States shall have access to all books, documents, papers, or other records that are pertinent to the activities carried out under this section in order to make audit examinations, excerpts, and transcripts.

(D) The comprehensive plan, any amendments to the comprehensive plan, and the annual statement shall, once approved by the Secretary, be binding upon the Secretary and the public housing agency. The Secretary may order corrective action only if the public housing agency does not comply with subparagraph (A) or (B) or if an audit under subparagraph (C) reveals findings that the Secretary reasonably believes require such corrective action. The Secretary may withhold funds under this section only if the public housing agency fails to take such corrective action after notice and a reasonable opportunity to do so. In administering this section, the Secretary shall, to the greatest extent possible, respect the professional judgment of the administrators of the public housing agency.

(f) Amount of assistance; approved uses

(1) The amount of financial assistance made available under subsection (b) of this section to any public housing agency that owns or operates less than 250 public housing dwelling units with respect to any year may not exceed the sum of-

(A) an amount determined by the Secretary to be necessary to undertake the actions specified for such year in the schedule submitted pursuant to subsection (d)(3)(A) of this section;

(B) the amount determined necessary by the Secretary to reimburse the public housing agency for the cost of developing the plan described pursuant to subsection (d)(3) of this section, less any amount which has been provided such public housing agency with respect to such year under paragraph (4); 4 and

(C) in the case of a public housing agency which meets such criteria of financial distress as are established by the Secretary and which has submitted the information described in paragraphs (1) and (2) of subsection (d) of this section, the amount determined necessary by the Secretary to enable such agency to develop the plan described pursuant to subsection (d)(3) of this section;


except that not more than 5 per centum of the total amount utilized for contributions contracts under subsection (b) of this section in any year shall be made available for the purposes described in paragraphs (3) and (4).4

(2) A public housing agency that owns or operates 250 or more public housing dwelling units may use financial assistance received under subsection (b) of this section only-

(A) to undertake activities described in its approved comprehensive plan under subsection (e)(1) of this section or its annual statement under subsection (e)(3) of this section;

(B) to correct conditions that constitute an immediate threat to the health or safety of tenants, whether or not the need for such correction is indicated in its comprehensive plan or annual statement; and

(C) to prepare a comprehensive plan under subsection (e)(1) of this section, including reasonable costs that may be necessary to assist tenants in participating in the planning process in a meaningful way, an annual statement under subsection (e)(3) of this section, an annual performance and evaluation report under subsection (e)(4)(A) of this section, and an audit under subsection (e)(4)(C) of this section.

(g) Requirements for additional assistance

No assistance shall be made available to a public housing agency pursuant to subsection (b) of this section for any year subsequent to the first year for which such assistance is made available to such agency unless the Secretary has determined that such agency has made substantial efforts to meet the objectives for the preceding year under the plan described in subsection (d)(3) or (e) of this section and approved by the Secretary.

(h) Public housing agencies entitled to preference

In making assistance available under subsection (b) of this section to a public housing agency that owns or operates fewer than 250 public housing dwelling units, the Secretary shall give preference to public housing agencies-

(1) which request assistance for projects (A) having conditions which threaten the health or safety of the tenants, or (B) having a significant number of vacant, substandard units; and

(2) which have demonstrated a capability of carrying out the activities proposed in the plan submitted by the agency pursuant to subsection (d)(3) of this section and approved by the Secretary.

(i) Assistance to housing agencies meeting emergency or special needs; rules and regulations

(1) In addition to assistance made available under subsection (b) of this section to a public housing agency that owns or operates fewer than 250 public housing dwelling units, the Secretary may, without regard to the requirements of subsection (c), (d), (f), (g), or (h) of this section, make available and contract to make available financial assistance (in such amounts as are authorized pursuant to section 1437c(c) of this title and as approved in appropriation Acts) to any public housing agency in an amount which the Secretary determines is necessary to meet emergency or special purpose needs, especially emergency and special purpose needs which relate to fire safety standards. Such needs shall be limited to-

(A) correcting conditions which threaten the health or safety of the tenants of any project (i) which is described in subsection (c) of this section, and (ii) with respect to which an application for assistance pursuant to subsection (d) of this section has not been approved by the Secretary;

(B) correcting conditions (i) which threaten the health or safety of the tenants of any project with respect to which an application for assistance pursuant to subsection (d) of this section has been approved, and (ii) which were unanticipated at the time of the development of such application;

(C) correcting conditions which threaten the health or safety of the occupants of any low-income housing project not described in subsection (c) of this section and not assisted pursuant to section 1437f of this title;

(D)(i) physical improvements needs which (I) would not otherwise be eligible for assistance under this section, and (II) pertain to any low-income housing project other than a project assisted under section 1437f of this title; and

(ii) physical improvement needs eligible under this subparagraph shall include replacing or repairing major equipment systems or structural elements, upgrading security, increasing accessibility for elderly and disabled families (as such terms are defined in section 1437a(b)(3) of this title), reducing the number of vacant substandard units, and increasing the energy efficiency of the units, except that the Secretary may make financial assistance available under this clause only if the Secretary determines that the physical improvements are necessary and sufficient to extend substantially the useful life of the project; or

(E) management improvement needs which (i) would not otherwise be eligible for assistance under this section, and (ii) pertain to any low-income housing project other than a project assisted under section 1437f of this title.


(2) The Secretary may issue such rules and regulations as may be necessary to carry out this subsection.

(j) Rules and regulations

(1) The Secretary may issue such rules and regulations as may be necessary to carry out the provisions and purposes of this section.

(2) The Secretary shall issue rules and regulations establishing standards which provide for decent, safe, and sanitary living conditions in low-rent public housing projects and for energy conserving improvements in such projects and which, to the extent practicable, are consistent with the Minimum Property Standards for Multi-Family Housing as they reasonably would be applied to existing housing, except that the Secretary may establish higher standards on a project-by-project basis in such cases where the Secretary deems such higher standards appropriate for furthering the purposes of this section.

(k) Formula allocation of modernization funding

(1) From amounts approved in appropriation Acts for grants under this section for fiscal year 1992 and each fiscal year thereafter, and to the extent provided by such Acts, the Secretary shall reserve not more than $75,000,000 (including unused amounts reserved during previous fiscal years), which shall be available for modernization needs resulting from natural and other disasters and from emergencies. Amounts provided for emergencies shall be repaid by public housing agencies from future allocations of assistance under paragraph (2), where available.

(2)(A) After determining the amounts to be reserved under paragraphs (1) and (5)(D)(iv), the Secretary shall allocate the amount remaining pursuant to a formula contained in a regulation prescribed by the Secretary, which shall be designed to measure the relative needs of public housing agencies. The formula shall take into account amounts previously made available by the Secretary for modernization under this section and for major reconstruction of obsolete projects, to the extent determined appropriate by the Secretary.

(B) The Secretary shall allocate half of the amount allocated under this paragraph based on the relative backlog needs of public housing agencies, determined-

(i) for individual public housing agencies with 250 or more units and for the aggregate of agencies with fewer than 250 units, where the data are statistically reliable, on the basis of the most recently available, statistically reliable data regarding the (I) backlog of needed repairs and replacements of existing physical systems in public housing projects, (II) items that must be added to projects to meet the modernization standards of the Secretary (referred to in subsection (e)(1)(A)(ii)(I) of this section) and State and local codes, and (III) items that are necessary or highly desirable for the long-term viability of a project; or

(ii) for individual public housing agencies with 250 or more units, where such data are not statistically reliable, on the basis of estimates of the categories of backlog specified in clause (i) using the most recently available data on the backlog, and objectively measurable data on public housing agency, community, and project characteristics regarding-

(I) the average number of bedrooms in the units in a project;

(II) the proportion of units in a project available for occupancy by very large families;

(III) the extent to which units for families are in high-rise elevator projects;

(IV) the age of the projects;

(V) in the case of a large agency, as determined by the Secretary, the number of units with 2 or more bedrooms;

(VI) the cost of rehabilitating property in the area;

(VII) for family projects, the extent of population decline in the unit of general local government determined on the basis of the 1970 and 1980 censuses; and

(VIII) any other factors the Secretary determines are appropriate.


The Secretary may not establish or amend any criteria regarding the backlog needs of public housing agencies under this subparagraph, except by rule as provided under section 553 of title 5.


(C) The Secretary shall allocate the other half of the amount allocated under this paragraph based on the relative accrued needs of public housing agencies for the categories of need specified in subparagraphs (B)(i)(I) and (II), determined-

(i) for individual public housing agencies with 250 or more units and for the aggregate of agencies with fewer than 250 units, where the data are statistically reliable, on the basis of the needs that are estimated to have accrued since the date of the last objective measurement of backlog needs under subparagraph (B); or

(ii) for individual public housing agencies with 250 or more units, where the estimates under clause (i) are not statistically reliable, on the basis of estimates of accrued need using the most recently available data on the backlog, and objectively measurable data on public housing agency, community, and project characteristics regarding-

(I) the average number of bedrooms of the units in a project;

(II) the proportion of units in a project available for occupancy by very large families;

(III) the age of the projects;

(IV) the extent to which the buildings in projects of an agency average fewer than 5 units;

(V) the cost of rehabilitating property in the area;

(VI) the total number of units of each agency that owns or operates 250 or more units; and

(VII) any other factors the Secretary determines are appropriate.


The Secretary may not establish or amend any criteria regarding the accrual needs of public housing agencies under this subparagraph, except by rule as provided under section 553 of title 5.


(D)(i) In determining how many units an agency owns or operates and the relative modernization needs of agencies, the Secretary shall count each existing unit under the annual contributions contract, except that an existing unit under the turnkey III and the mutual help programs may be counted as less than one unit, to take into account the responsibility of families for the costs of certain maintenance and repair. For purposes of this section, an agency that qualifies to receive a formula grant under paragraph (4) may elect to continue to qualify to receive a formula grant if it owns or operates at least 200 public housing units.

(ii) Where an existing unit under a contract is demolished or disposed of, the Secretary shall not adjust the amount the agency receives under the formula unless more than one percent of the units are affected on a cumulative basis. Where more than one percent of the units are demolished or disposed of, the Secretary shall reduce the formula amount for the agency over a 3-year period to reflect removal of the units from the contract.

(iii) The Secretary shall determine whether the data under subparagraphs (B) and (C) are statistically reliable.

(3) The amount determined under the formula for agencies with fewer than 250 units shall be allocated in accordance with subsection (d) of this section.

(4) The amount determined under the formula for each agency that owns or operates 250 or more units shall be allocated to each qualifying agency in accordance with subsection (e) of this section.

(5)(A) With respect to any agency that is designated as a troubled agency with respect to the program under this section upon the designation of such troubled agencies under section 1437d(j)(2)(A)(i) of this title, the Secretary shall limit the total amount of funding under this section for the agency for fiscal year 1992 and any fiscal year thereafter, if the agency remains designated as a troubled agency, to the sum of-

(i) the average of the amount that the troubled agency received for modernization activities under this section and for major reconstruction of obsolete projects for each of the preceding three fiscal years, which average shall be adjusted to take into account changes in the cost of rehabilitating property; plus

(ii) 25 percent of the difference between the amount determined under clause (i) and the amount that would be allocated to the agency in such fiscal year if the agency were not designated as a troubled agency.

(iii) In determining whether an agency is "troubled with respect to the modernization program", the Department shall consider only the agency's ability to carry out that program effectively based upon the agency's capacity to accomplish the physical work: (a) with decent quality; (b) in a timely manner; (c) under competent contract administration; and (d) with adequate budget controls. No other criteria shall be applied in the determination.


(B) In any fiscal year the Secretary may, pursuant to the request of a troubled agency, increase the amount allocated to the agency under subparagraph (A) to an amount not exceeding the amount that would be allocated to the agency in such fiscal year if the agency were not a troubled agency. An increase under this subparagraph shall be based on the agency's progress toward meeting the performance indicators under section 1437d(j)(1) of this title. The Secretary shall render a decision in writing on each such request not later than 75 days after receipt of the request and any necessary supporting documentation.

(C) For any fiscal year, any amounts that would have been allocated to an agency under the formula under paragraph (2) that are not allocated to the agency because the agency receives the amount provided under subparagraph (A) of this paragraph, shall be allocated in such year pursuant to the formula to other agencies with 250 or more units.

(D) The Secretary shall carry out a credit system under this subparagraph to provide agencies that receive allocations under subparagraph (A) with additional assistance under this section after the agency is determined not to be a troubled agency, to compensate for amounts not received because of the troubled agency designation. The credit system shall be subject to the following requirements:

(i) Any agency that receives assistance pursuant to subparagraph (A) for any fiscal year shall receive credits for the difference between the amount that the agency would have been allocated in such year if it were not designated a troubled agency and the amount allocated for the agency for such year under subparagraph (A).

(ii) An agency may not receive credits under this subparagraph for more than 3 consecutive fiscal years.

(iii) After a 3-year period during which an agency has accrued credits, the credits accrued by the agency shall be-

(I) decreased by 10 percent of the total credits accumulated if the designation as a troubled agency is not removed before the conclusion of the first fiscal year after such 3-year period of accrual of credits;

(II) decreased by an additional 20 percent of the original total accumulated credits if the designation as a troubled agency is not removed before the conclusion of the second fiscal year after such 3-year accrual period;

(III) decreased by an additional 30 percent of the original total accumulated credits if the designation as a troubled agency is not removed before the conclusion of the third fiscal year after such 3-year accrual period; and

(IV) eliminated if the designation as a troubled agency is not removed before the conclusion of the fourth fiscal year after such 3-year accrual period.


(iv) After a determination by the Secretary that an agency is not a troubled agency, the Secretary shall provide the agency with amounts made available under this clause in accordance with the amount of credits accumulated by the agency (subject to the reductions under clause (iii)). Such amounts shall be provided in addition to the amounts allocated to the agency pursuant to the formula under paragraph (2). In each fiscal year, the Secretary shall reserve from amounts available for allocation under paragraph (2)(A) the amount necessary to provide assistance pursuant to such credits, except that the reserved amount may not exceed 5 percent of the total amount available for allocation under such paragraph.

(v) In making payments for accrued credits in accordance with clause (iv), the Secretary may take into account the ability of the agency to expeditiously expend amounts received for credits.


(6) Any amounts (A) allocated under paragraph (4) that become available for reallocation because an agency does not qualify to receive all or a part of its formula allocation due to failure to comply with the requirements of this section (other than because of designation as a troubled agency), and (B) recaptured by the Secretary for good cause, shall (subject to approval in appropriations Acts) be reallocated by the Secretary in the next fiscal year to other housing agencies that own or operate 250 or more units, based on their relative needs. The relative needs of agencies shall be measured by the formula established pursuant to paragraph (2)(A).

(7) A public housing agency may appeal the amount of its allocation determined under the formula on the basis of unique circumstances or on the basis that the objectively measurable data regarding the agency, community, and project characteristics used for determining the formula amount were not correct.

(8) Amounts allocated to a public housing agency under paragraph (3) or (4) may be used for any eligible activity in accordance with this section, notwithstanding that the allocation amount is determined by allocating half based on relative backlog needs and half based on relative accrued needs of agencies.

(l) Annual report

The Secretary shall include in the annual report under section 3536 of this title-

(1) a description of the allocation, distribution, and use of assistance under this section on a regional basis and on the basis of public housing agency size; and

(2) a national compilation of the total funds requested in comprehensive plans for all public housing agencies owning or operating 250 or more public housing dwelling units.

(m) Regulations

Subject to subsection (k)(1) of this section, the Secretary may issue any regulations that are necessary to carry out this section.

(n) Limitation

The Secretary shall not make assistance under this section available with respect to a property transferred under subchapter II–A of this chapter.

(o) Uses of obligated amounts by public housing agencies

Any amount that the Secretary has obligated to a public housing agency under this section other than pursuant to the program established under subsection (e) of this section, shall be used for the purposes for which such amount was provided, or for purposes consistent with an action plan submitted by the agency under subsection (e) of this section and approved by the Secretary, as the agency determines to be appropriate.

(p) Reduction of vacancies in public housing units

(1) The Secretary shall require any public housing agency that has a vacancy rate among dwelling units owned or operated by the agency that exceeds twice the average vacancy rate among all agencies, that is designated as a troubled agency under section 1437d(j) of this title, or for which a receiver has been appointed pursuant to section 1437d(j)(3) of this title, to participate in the vacancy reduction program under this subsection.

(2) Each public housing agency participating in the program under this subsection shall develop and submit to the Secretary a vacancy reduction plan regarding vacancies in units owned or operated by the agency. The plan shall include statements (A) identifying vacant dwelling units administered by the agency and explaining the reasons for the vacancies, (B) describing the actions to be taken by the agency during the following 5 years to eliminate the vacancies, (C) identifying any impediments that will prevent elimination of the vacancies within the 5-year period, (D) identifying any vacant units subject to comprehensive modernization, major reconstruction, demolition, and disposition activities that have been funded or approved, (E) identifying any vacant dwelling units that are eligible for comprehensive modernization, major reconstruction, demolition, or disposition but have not been funded or approved for such activities and are not likely to be funded or approved for at least 3 years and estimating the amount of assistance necessary to complete the comprehensive modernization, major reconstruction, demolition, or disposition of such units, (F) identifying any vacant units not identified under subparagraphs (E) and (F) 5 and describing any appropriate activities relating to elimination of the vacancies in such units and estimating the amount of assistance necessary to carry out the activities, and (G) setting forth an agenda for implementation of management improvements (including, as appropriate, improvements recommended by the assessment team pursuant to paragraph (3)(C)) during the first fiscal year beginning after submission of the plan and including an estimate of the amount of assistance necessary to implement the improvements.

(3)(A) Upon the expiration of the 24-month period beginning upon the receipt of assistance under paragraph (5) by a public housing agency, the Secretary shall, after reviewing the progress made in complying with the plan, reserve from the annual contribution attributable to each unit vacant for the 24-month period an amount determined by the Secretary but not exceeding 80 percent of such contribution. The Secretary may not reserve any amounts under this subparagraph for any vacant dwelling unit that is vacant because of modernization, reconstruction, or lead-based paint reduction activities.

(B) The Secretary shall deposit any amounts reserved under subparagraph (A) in a separate account established on behalf of the public housing agency, and such amounts shall be available to the agency only for the purpose of carrying out activities in compliance with the vacancy reduction plan of the agency.

(C) If, after the expiration of the 24-month period beginning upon the reservation under subparagraph (A) of amounts for a public housing agency, the Secretary determines that the agency has not made significant progress to comply with the provisions of the vacancy reduction plan of the agency, the amount remaining in the account for the agency established under subparagraph (B) shall be recaptured by the Secretary.

(4)(A) In cooperation with each agency participating in the program under this subsection, the Secretary shall provide for onsite assessment of the vacancy situation of the agency by a team of knowledgeable observers. The assessment team shall include representatives of the Department of Housing and Urban Development, an equal number of independent experts knowledgeable with respect to vacancy problems and management issues relating to public housing, and officials of the public housing agency, all of whom shall be selected by the Secretary. The assessment team shall assess the vacancy situation of the agency to determine the causes of the vacancies, including any management deficiencies or modernization activities.

(B) The assessment team shall also examine indicators of the management performance of the agency relating to vacancy, which shall include consideration of the performance of the agency as measured by the indicators under subparagraphs (A) and (E) of section 1437d(j)(1) of this title.

(C) The assessment team shall submit to the agency and the Secretary written recommendations for management improvements to eliminate or alleviate management deficiencies, and may assist the agency in preparing the vacancy reduction plan under paragraph (2), including determining appropriate actions to eliminate vacancies.

(D) The Secretary may use amounts made available under paragraph (6) for any travel and administrative expenses of assessment teams under this paragraph.

(5) The Secretary shall, subject to the availability of amounts under paragraph (6), provide assistance under this subsection to public housing agencies submitting vacancy reduction plans for reasonable costs of-

(A) implementing management improvements;

(B) rehabilitating vacant dwelling units identified in the statement under paragraph (2), except that the Secretary may provide assistance to a public housing agency designated as a troubled agency for the purposes under this subparagraph only if the Secretary determines that the agency is making substantial progress in remedying management deficiencies, if any, or that the agency has provided reasonable assurances that such progress will be made; and

(C) carrying out vacancy reduction activities described in the statement under paragraph (2), except that the Secretary may provide assistance to a public housing agency designated as a troubled agency for the purposes under this subparagraph only if the Secretary determines that the agency is making substantial progress in remedying management deficiencies, if any, or that the agency has provided reasonable assurances that such progress will be made.


(6)(A) Of any amounts available under this section in each of fiscal years 1993 and 1994 (after amounts are reserved pursuant to subsection (k)(1) of this section), an amount equal to 4 percent of such remaining funds shall be available in each such fiscal year for the purposes under subparagraph (B).

(B) Of such amounts available under subparagraph (A) in each such fiscal year-

(i) 20 percent shall be available only for carrying out activities under section 1437d(j) of this title; and

(ii) 80 percent shall be available for carrying out this subsection.

(Sept. 1, 1937, ch. 896, title I, §14, as added Oct. 8, 1980, Pub. L. 96–399, title II, §202(a), 94 Stat. 1625 ; amended Aug. 13, 1981, Pub. L. 97–35, title III, §§322(c), 329G, 95 Stat. 402 , 410; Nov. 30, 1983, Pub. L. 98–181, title II, §214(b), 97 Stat. 1185 ; Oct. 17, 1984, Pub. L. 98–479, title II, §204(b)(2), 98 Stat. 2233 ; Feb. 5, 1988, Pub. L. 100–242, title I, §§112(b)(6), 119(b)–(i), 120, 101 Stat. 1824 , 1830-1837; renumbered title I, June 29, 1988, Pub. L. 100–358, §5, 102 Stat. 681 ; Nov. 28, 1990, Pub. L. 101–625, title IV, §414, title V, §§509(a)–(g), 510, 572, 104 Stat. 4160 , 4187, 4191-4193, 4236; Oct. 28, 1991, Pub. L. 102–139, title II, 105 Stat. 757 , 759; Oct. 28, 1992, Pub. L. 102–550, title I, §§111(b)(1), 115, title VI, §625(a)(3), 106 Stat. 3688 , 3692, 3820; Apr. 11, 1994, Pub. L. 103–233, title III, §302, 108 Stat. 369 .)

References in Text

Subsection (f)(4) of this section, referred to in subsec. (d), was successively redesignated subsec. (f)(1)(D) of this section by Pub. L. 100–242, §119(e), then subsec. (f)(1)(C) by Pub. L. 103–233, §302(2)(E).

The Civil Rights Act of 1964, referred to in subsec. (e)(1)(F), is Pub. L. 88–352, July 2, 1964, 78 Stat. 241 , as amended. Title VI of the Civil Rights Act of 1964 is classified generally to subchapter V (§2000d et seq.) of chapter 21 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 2000a of this title and Tables.

Title VIII of the Act of April 11, 1968 (commonly known as the Civil Rights Act of 1968), referred to in subsec. (e)(1)(F), is title VIII of Pub. L. 90–284, Apr. 11, 1968, 82 Stat. 81 , as amended, known as the Fair Housing Act, which is classified principally to subchapter I (§3601 et seq.) of chapter 45 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 3601 of this title and Tables.

Paragraphs (3) and (4), referred to in subsec. (f)(1)(B) and concluding provisions of subsec. (f)(1), probably mean pars. (3) and (4) of subsec. (f) as it existed prior to amendment by Pub. L. 100–242, §119(e), which redesignated pars. (3) and (4) of subsec. (f) as subpars. (C) and (D), respectively, of par. (1) of subsec. (f). Subpars. (C) and (D) of par. (1) were subsequently redesignated subpars. (B) and (C), respectively, of par. (1) by Pub. L. 103–233, §302(2)(E).

Amendments

1994-Subsec. (d)(2). Pub. L. 103–233, §302(1)(A), (C), redesignated par. (3) as (2) and struck out former par. (2) which read as follows: "an identification, for each such project, of the equipment systems or structural elements which would normally be replaced (assuming routine and timely maintenance is performed) over the remaining period of the contributions contract or during the 30-year period beginning on the date of submission of the application, whichever period is longer;".

Subsec. (d)(3). Pub. L. 103–233, §302(1)(C), redesignated par. (4) as (3). Former par. (3) redesignated (2).

Subsec. (d)(4). Pub. L. 103–233, §302(1)(C), redesignated par. (4) as (3).

Pub. L. 103–233, §302(1)(B), in introductory provisions, substituted "improvements and for meeting the needs, described in paragraphs (1) and (2)" for "improvements and replacements, and for meeting the needs, described in paragraphs (1), (2), and (3)".

Subsec. (f)(1)(A). Pub. L. 103–233, §302(2)(A), substituted "subsection (d)(3)(A)" for "subsection (d)(4)(A)".

Subsec. (f)(1)(B). Pub. L. 103–233, §302(2)(B), (E), redesignated subpar. (C) as (B) and struck out former subpar. (B) which read as follows: "the amount determined necessary by the Secretary to fund the replacement costs which have been identified pursuant to subsection (d)(4)(C) of this section for each project, which have accrued for the period ending at the beginning of such year, and for which payment under subsection (b) of this section has not been made previously;".

Subsec. (f)(1)(C). Pub. L. 103–233, §302(2)(E), redesignated subpar. (D) as (C). Former subpar. (C) redesignated (B).

Pub. L. 103–233, §302(2)(C), substituted "subsection (d)(3)" for "subsection (d)(4)".

Subsec. (f)(1)(D). Pub. L. 103–233, §302(2)(E), redesignated subpar. (D) as (C).

Pub. L. 103–233, §302(2)(D), substituted "paragraphs (1) and (2)" for "paragraphs (1), (2), and (3)" and "subsection (d)(3)" for "subsection (d)(4)".

Subsecs. (g), (h)(2). Pub. L. 103–233, §302(3), (4), substituted "subsection (d)(3)" for "subsection (d)(4)".

1992-Subsec. (c). Pub. L. 102–550, §111(b)(1), in introductory provisions, inserted "buildings of" after "for" and struck out "which" after "projects"; in pars. (1) to (3), inserted "which projects" after par. designation; in par. (4), inserted "which projects" after par. designation; added par. (4); and redesignated former par. (4) as (5).

Subsec. (i)(1)(D)(ii). Pub. L. 102–550, §625(a)(3), substituted "elderly and disabled families" for "elderly families and handicapped families".

Subsec. (p)(1). Pub. L. 102–550, §115(b), substituted "agencies, that" for "agencies or that" and inserted "or for which a receiver has been appointed pursuant to section 1437d(j)(3) of this title," after "section 1437d(j) of this title,".

Subsec. (p)(2)(D), (E). Pub. L. 102–550, §115(h), substituted "comprehensive modernization, major reconstruction" for "modernization, reconstruction" in cl. (D) and "the comprehensive modernization" for "the modernization" in cl. (E).

Subsec. (p)(3). Pub. L. 102–550, §115(g)(2), added par. (3). Former par. (3) redesignated (4).

Subsec. (p)(3)(A). Pub. L. 102–550, §115(f), substituted "Urban Development," for "Urban Development and" and "and officials of the public housing agency, all of whom" for "who".

Subsec. (p)(3)(D). Pub. L. 102–550, §115(e), added subpar. (D).

Subsec. (p)(4). Pub. L. 102–550, §115(g)(1), redesignated par. (3) as (4). Former par. (4) redesignated (5).

Pub. L. 102–550, §115(c)(1), (d), in introductory provisions, substituted ", subject to the availability of amounts under paragraph (6)," for ", to the extent approved in appropriations Acts," and, in subpar. (B), inserted before semicolon ", except that the Secretary may provide assistance to a public housing agency designated as a troubled agency for the purposes under this subparagraph only if the Secretary determines that the agency is making substantial progress in remedying management deficiencies, if any, or that the agency has provided reasonable assurances that such progress will be made".

Subsec. (p)(4)(C). Pub. L. 102–550, §115(c)(2), which directed insertion of ", except that the Secretary may provide assistance to a public housing agency designated as a troubled agency for the purposes under this subparagraph only if the Secretary determines that the agency is making substantial progress in remedying management deficiencies, if any, or that the agency has provided reasonable assurances that such progress will be made" before semicolon, was executed by making the insertion before period at end to reflect the probable intent of Congress.

Subsec. (p)(5). Pub. L. 102–550, §115(g)(1), redesignated par. (4) as (5). Former par. (5) redesignated (6).

Pub. L. 102–550, §115(a), amended par. (5) generally. Prior to amendment, par. (5) read as follows: "Of any amounts available for allocation under this section to large public housing agencies pursuant to subsection (k)(2) of this section, not more than $105,000,000 shall be available in fiscal year 1991 and not more than $220,000,000 shall be available in fiscal year 1992 for carrying out this subsection."

Subsec. (p)(6). Pub. L. 102–550, §115(g)(1), redesignated par. (5) as (6).

1991-Subsec. (a)(3) to (5). Pub. L. 102–139 added pars. (3) to (5).

Subsec. (k)(5)(A). Pub. L. 102–139 struck out "initial" before "designation".

Subsec. (k)(5)(A)(i). Pub. L. 102–139, which directed the substitution of "for each of the preceding three fiscal years" for "for each of fiscal years of 1989, 1990 and 1991", was executed by making the substitution for "for each of fiscal years 1989, 1990, and 1991", to reflect the probable intent of Congress.

Subsec. (k)(5)(A)(iii). Pub. L. 102–139 added cl. (iii).

Subsec. (k)(5)(E). Pub. L. 102–139 struck out subpar. (E) which required Secretary to establish special rules for limiting assistance to agencies that became troubled after date of initial designation under section 1437d(j)(2)(A)(i) of this title.

1990-Pub. L. 101–625, §509(g), amended section catchline generally.

Subsec. (a). Pub. L. 101–625, §572(1), substituted "low-income families" for "lower income families" in concluding provisions.

Subsec. (d). Pub. L. 101–625, §509(e)(1)(A), substituted "250" for "500" in introductory provisions.

Subsec. (d)(4). Pub. L. 101–625, §509(b), inserted "and" at end of subpar. (A), substituted period for semicolon at end of subpar. (B), and struck out subpars. (C) to (E) which read as follows:

"(C) an estimate of the total costs of the replacement of the items identified for each such project pursuant to paragraph (2) over the remaining period of the contributions contract or during the 30-year period beginning on the date of submission of the application, whichever period is longer, including an estimate of the amount of funds necessary to fund the costs which have accrued for the period which ends upon the date on which the application is made, and an estimate of the costs which will accrue during each 12-month period subsequent to such application;

"(D) an operating budget for each such project for each 12-month period covered by such plan, excluding costs described in subparagraphs (B) and (C); and

"(E) an estimate of the financial resources which will be available from all sources to each such project and to the public housing agency (to the extent the resources of the agency relate to such project), and the amounts of assistance which are being requested pursuant to subsection (b) of this section for each 12-month period covered by the plan."

Subsec. (e)(1). Pub. L. 101–625, §509(e)(1)(B), substituted "250" for "500" in introductory provisions.

Subsec. (e)(1)(E)(ii). Pub. L. 101–625, §572(2), substituted "low-income housing" for "lower income housing".

Subsec. (e)(3)(A). Pub. L. 101–625, §509(e)(1)(B), substituted "250" for "500".

Pub. L. 101–625, §509(a)(2)(A), struck out after first sentence "The Secretary, in establishing the funding for a public housing agency for any fiscal year, shall review the relative needs for restoring public housing shown by the approved comprehensive plans in the regional or area office of the Department of Housing and Urban Development for such agency."

Subsec. (e)(4)(A), (C). Pub. L. 101–625, §509(e)(1)(B), substituted "250" for "500".

Subsec. (f)(1). Pub. L. 101–625, §509(e)(1)(C), substituted "250" for "500" in introductory provisions.

Subsec. (f)(2). Pub. L. 101–625, §509(e)(1)(C), substituted "250" for "500" in introductory provisions.

Subsec. (f)(2)(B). Pub. L. 101–625, §509(c)(1), struck out "and to meet special purpose needs described in subsection (i)(1)(D) of this section" after "safety of tenants".

Subsec. (h). Pub. L. 101–625, §509(e)(1)(D), substituted "250" for "500" in introductory provisions.

Pub. L. 101–625, §509(a)(2)(B)(i), inserted "to a public housing agency that owns or operates fewer than 500 public housing dwelling units" after "subsection (b) of this section" in introductory provisions.

Subsec. (h)(2). Pub. L. 101–625, §509(a)(2)(B)(ii), struck out "or (e)" after "(d)(4)".

Subsec. (i)(1). Pub. L. 101–625, §509(e)(1)(E), substituted "250" for "500" in introductory provisions.

Pub. L. 101–625, §509(c)(2), substituted "In addition to assistance made available under subsection (b) of this section to a public housing agency that owns or operates fewer than 500 public housing dwelling units, the Secretary may, without regard to the requirements of subsection (c), (d), (f), (g), or (h) of this section," for "In addition to assistance made available under subsection (b) of this section, the Secretary may, without regard to the requirements of subsections (c) through (h) of this section,".

Subsec. (i)(1)(C), (D)(i)(II). Pub. L. 101–625, §572(2), substituted "low-income housing" for "lower income housing".

Subsec. (i)(1)(E). Pub. L. 101–625, §509(d), added subpar. (E).

Subsec. (k). Pub. L. 101–625, §509(e)(1)(F), (2), in pars. (2)(B), (C), (3), (4), and (6), substituted "250" for "500" wherever appearing; directed substitution of "250" for "500" in par. (5)(B), which was executed to par. (5)(C) to reflect the probable intent of Congress, because "500" did not appear in par. (5)(B); and in par. (2)(D)(i), substituted "200" for "400".

Pub. L. 101–625, §509(a)(1), amended subsec. (k) generally, substituting present provisions for provisions requiring allocation of assistance under method in effect on Feb. 5, 1988, until Congressional revision of method, requiring Secretary, by 1 year after Feb. 5, 1988, to complete study on need for modernization and related studies and to submit to Congress proposed methods of allocation of funds between current repairs and future needs, proposed allocation of funds among agencies, analysis of data used, and bases underlying proposed allocation methods, proposed criteria for distinguishing routine and extraordinary capital activities, and proposed alternative methods of allocating funds among agencies to meet routine modernization and capital expenses and for meeting extraordinary expenses, and to consult with interested parties and estimate amount to be received by at least 200 largest agencies under each alternative allocation system.

Subsec. (l)(2). Pub. L. 101–625, §509(e)(1)(G), substituted "250" for "500".

Subsec. (n). Pub. L. 101–625, §414, added subsec. (n).

Subsecs. (o), (p). Pub. L. 101–625, §§509(f), 510, added subsecs. (o) and (p).

1988-Subsec. (b). Pub. L. 100–242, §119(b), designated existing provisions as par. (1) and added par. (2).

Subsec. (c)(2). Pub. L. 100–242, §112(b)(6)(A), substituted "assisted under section 1437c" for "receive assistance under section 1437c(c)".

Subsec. (d). Pub. L. 100–242, §119(i)(1), substituted "subsection (f)(4)" for "subsection (e)(4)" in first sentence.

Pub. L. 100–242, §119(c), inserted "to a public housing agency that owns or operates less than 500 public housing dwelling units" after "subsection (b) of this section" in first sentence.

Subsec. (d)(2), (4)(C). Pub. L. 100–242, §112(b)(6)(B), struck out "annual" before "contributions".

Subsec. (e). Pub. L. 100–242, §119(d)(2), added subsec. (e). Former subsec. (e) redesignated (f).

Subsec. (f). Pub. L. 100–242, §119(i)(3), struck out "annual" before "contributions" in closing provisions of par. (1).

Pub. L. 100–242, §119(e), designated existing provisions as par. (1), inserted "that owns or operates less than 500 public housing dwelling units" after "public housing agency", redesignated former pars. (1) to (4) as subpars. (A) to (D), respectively, and added par. (2).

Pub. L. 100–242, §119(d)(1), redesignated former subsec. (e) as (f).

Subsecs. (g), (h)(2). Pub. L. 100–242, §119(i)(4), (5), inserted "or (e)" after "subsection (d)(4)".

Subsec. (i)(1). Pub. L. 100–242, §119(i)(6), which directed that subsec. (i) be amended by substituting "subsections (c) through (h)" for "subsections (c), (d), (e), (g), and (h)", was executed by substituting "subsections (c) through (h)" for "subsections (c), (d), (e), (f), (g), and (h)", to reflect the probable intent of Congress, because of the prior amendment by section 119(i)(2) of Pub. L. 100–203. See below.

Pub. L. 100–242, §119(i)(2), inserted "(f)," after "(e),".

Subsec. (i)(1)(D). Pub. L. 100–242, §120, designated existing provisions as cl. (i), redesignated former subcls. (i) and (ii) as (I) and (II), respectively, and added cl. (ii).

Subsecs. (k) to (m). Pub. L. 100–242, §119(f)–(h), added subsecs. (k) to (m).

1984-Subsec. (a). Pub. L. 98–479 substituted a semicolon for the comma at end of pars. (1) and (2).

1983-Subsec. (f). Pub. L. 98–181 repealed subsec. (f) relating to applications proposing demolition of housing project.

1981-Subsecs. (a), (f)(3). Pub. L. 97–35, §322(c), substituted reference to lower income for reference to low-income.

Subsec. (i)(1). Pub. L. 97–35, §§322(c), 329G, inserted applicability to fire safety standards and substituted reference to lower income housing for low-income housing in subpars. (C) and (D).

Effective Date of 1992 Amendment

Amendment by subtitles B through F of title VI [§§621–685] of Pub. L. 102–550 applicable upon expiration of 6-month period beginning Oct. 28, 1992, except as otherwise provided, see section 13642 of this title.

Effective Date of 1990 Amendment

Section 509(e) of Pub. L. 101–625 provided that the amendment made by that section is effective Oct. 1, 1992.

Effective Date of 1981 Amendment

Amendment by Pub. L. 97–35 effective Oct. 1, 1981, see section 371 of Pub. L. 97–35, set out as an Effective Date note under section 3701 of Title 12, Banks and Banking.

Regulations

Section 509(h) of Pub. L. 101–625 provided that:

"(1) In general.-The Secretary of Housing and Urban Development shall implement the amendments made by this section [amending this section] by rule under section 553 of title 5, United States Code. The Secretary shall consult with the Congress, public housing agencies, and professional organizations representing public housing agencies before publishing a proposed rule pursuant to such section. The proposed rule shall be published not later than the expiration of the 120-day period beginning on the date of the enactment of this Act [Nov. 28, 1990].

"(2) Allocation formula.-The Secretary of Housing and Urban Development shall establish the allocation formula under section 14(k)(2)(A) of the United States Housing Act of 1937 [42 U.S.C. 1437l(k)(2)(A)], as amended by subsection (a) of this section, by rule under section 553 of title 5, United States Code. In publishing a proposed rule regarding the formula pursuant to such section 553, the Secretary shall describe-

"(A) the analytic basis for the formula;

"(B) the weight assigned to the various criteria contained in the formula pursuant to such section 14(k)(2);

"(C) deductions from the formula share for amounts received for modernization activities under section 14 and major reconstruction of obsolete projects; and

"(D) any other information the Secretary determines is appropriate.

"(3) Alternative formulas.-When publishing the proposed rule required under paragraph (2), the Secretary of Housing and Urban Development may, at the discretion of the Secretary, publish alternative formulas, identifying the weights assigned to the various criteria under the formulas, and explaining the differences in operation and objectives of the alternative formulas."

Inapplicability of Certain 1992 Amendments to Indian Public Housing

Amendment by section 625(a)(3) of Pub. L. 102–550 not applicable with respect to lower income housing developed or operated pursuant to contract between Secretary of Housing and Urban Development and Indian housing authority, see section 626 of Pub. L. 102–550, set out as a note under section 1437a of this title.

Urban Revitalization Demonstration Program

Pub. L. 102–389, title II, Oct. 6, 1992, 106 Stat. 1579 , provided in part that: "Furthermore, $300,000,000 shall be for grants to carry out an urban revitalization demonstration program involving major reconstruction of severely distressed or obsolete public housing projects, to be administered by local public housing agencies: Provided, That such funding shall be made available to up to 15 cities selected from either the 40 most populous United States cities or, from any city whose housing authority was considered to have been on the Department's troubled housing authorities list as of March 31, 1992: Provided further, That no more than $50,000,000 shall be provided to each participating municipality: Provided further, That no more than 500 units shall be funded for each participating city and such units shall be located in up to 3 separately defined areas containing the community's most severely distressed projects, including family high-rise projects: Provided further, That at least 80 per centum of the funding provided to each participating public housing agency shall be used for the capital costs of major reconstruction, rehabilitation and other physical improvements, for the capital costs of replacement units and for certificates under section 8(b) [42 U.S.C. 1437f(b)] used for replacement and for management improvements for the reconstructed project and for planning and technical assistance purposes and not more than 20 per centum shall be used for community service programs (as defined by the Commission on National and Community Service) and for supportive services, including, but not limited to, literacy training, job training, day care, youth activities, administrative expenses, and the permissive and mandatory services authorized under the Gateway Program established in the Family Support Centers demonstration program, provided for in 42 U.S.C. 11485e–f [11485(e), (f)]: Provided further, That each participating city shall make contributions for supportive services in an amount equal to 15 per centum of the funding provided for supportive services pursuant to the immediately preceding proviso: Provided further, That all such contributions from participating jurisdictions for supportive services shall be derived from non-Federal sources: Provided further, That each participating community shall submit a plan for program implementation which is consistent with the local comprehensive housing affordability strategy prepared pursuant to section 105 of the Cranston-Gonzalez National Affordable Housing Act [42 U.S.C. 12705] and which has the approval of the local governing body: Provided further, That each plan shall include a community services component, but no funds are to be disbursed pursuant to this paragraph until such community services program has been approved by the Commission on National and Community Service: Provided further, That funds made available pursuant to this paragraph may be used in conjunction with, but not in lieu of, funding provided under the head 'Modernization of Low-Income Housing Projects' for the modernization of existing public housing projects pursuant to section 14 of the Act (42 U.S.C. 1437l); for construction or major reconstruction of obsolete public housing, other than for Indian families; for the replacement of public housing units pursuant to section 18 of the Act [42 U.S.C. 1437p]; and for the HOPE for Public and Indian Housing Homeownership program as authorized under title III of the Act [42 U.S.C. 1437aaa et seq.]: Provided further, That notwithstanding the provisions of section 18(b)(3) of the Act, units demolished, disposed of or otherwise eliminated under this demonstration may be replaced as follows: one-third by certificates under section 8(b) and the balance by any combination of conventional public housing and units acquired or otherwise provided for homeownership under section 5(h) of the Act [42 U.S.C. 1437c(h)], housing made available through housing opportunity programs of construction or substantial rehabilitation of homes meeting essentially the same eligibility requirements as those established pursuant to sections 603–607 of the Housing and Community Development Act of 1987 (Public Law 100–242) [formerly 12 U.S.C. 1715l note], or under the HOPE II or III programs, as established under sections 421 and 441 of the Cranston-Gonzalez National Affordable Housing Act [42 U.S.C. 12871, 12891]; persons displaced by the reconstruction activities provided for herein shall be eligible for these replacement units: Provided further, That, in order to be eligible for funding under this paragraph, applications for funding must be received within 180 days from the date the Notice of Funds Availability is published in the Federal Register: Provided further, That the Secretary of the Department of Housing and Urban Development shall issue a notice of funds availability within 90 days of enactment of this paragraph [Oct. 6, 1992]: Provided further, That the Secretary shall determine which cities have been selected to participate in the program within 90 days of the timely receipt of the last eligible application: Provided further, That housing authorities, in submitting their application for funds under this paragraph, shall identify all severely distressed public housing developments, using the criteria set forth by the National Commission on Severely Distressed Public Housing: Provided further, That nothing in this paragraph shall prohibit the Secretary from conforming the program standards and criteria set forth herein, with subsequent authorization legislation that may be enacted into law: Provided further, That the authority in the immediately preceding proviso shall not apply to any legislation that excludes or otherwise limits self-sufficiency or community service activities set forth in this paragraph, or authorize reallocation of amounts available for obligation which are included in this paragraph: Provided further, That any troubled housing authority that applies for funds under this paragraph, shall not be eligible if the Secretary certifies to the Congress that they are not making substantial progress to eliminate their troubled status in accordance with section 6(j) of the [United States] Housing Act of 1937, as amended [42 U.S.C. 1437d(j)]: Provided further, That in the event that communities applying for funding under this paragraph also request funding under any other HOPE program authorized under title III or title IV of the Cranston-Gonzalez National Affordable Housing Act [Pub. L. 101–625, see Tables for classification], the Secretary shall process such applications concurrently and in an expeditious manner: Provided further, That, in the event that any application received from the cities initially selected to participate in this program is determined to be unacceptable, the Secretary shall select another city from the 40 most populous United States cities to receive funding under this paragraph: Provided further, That, in the event that communities selected to receive funding do not proceed in a manner consistent with the plan approved for that community, the Secretary may withdraw any unobligated balances of funding made available pursuant to this paragraph and distribute such funds to other eligible communities."

Additional provisions relating to appropriations for the urban revitalization demonstration program, administration of the program, and specific funding requirements were contained in the following appropriation acts:

Pub. L. 103–327, title II, Sept. 28, 1994, 108 Stat. 2308 .

Pub. L. 103–124, title II, Oct. 28, 1993, 107 Stat. 1285 .

Reports to Congress

Section 509(i) of Pub. L. 101–625 provided that:

"(1) Independent evaluation[.]-The Secretary of Housing and Urban Development shall enter into a contract providing for the independent evaluation of the modernization program authorized under section 14 of the United States Housing Act of 1937 [42 U.S.C. 1437l], as amended by this section, and shall submit to the Congress a report on the results of the evaluation within 3 years after the initial allocation of assistance by formula under such section 14.

"(2) Modifications.-The Secretary shall submit a report to Congress, within 2 years after the date of enactment of this Act [Nov. 28, 1990], recommending any changes to such section 14 that the Secretary determines are appropriate to take into account the relative needs of public housing agencies for assistance to carry out lead-based paint testing and abatement activities. The Secretary shall not adopt any changes to the formula for this purpose except by law."

Purpose of 1988 Amendment

Section 119(a) of Pub. L. 100–242 provided that: "It is the purpose of the amendments made by this section [amending this section]-

"(1) to provide assistance on a reliable and more predictable basis to public housing agencies in furtherance of their plans to enable them to operate, upgrade, modernize, and rehabilitate public housing projects financed under the United States Housing Act of 1937 [this chapter] to ensure their continued availability for the benefit of lower income families as decent, safe, and sanitary rental housing at affordable rents;

"(2) to provide considerable discretion to public housing agencies to decide the specific improvements, the manner of their execution, and the timing of the expenditure of funds in the modernization of projects under section 14 of the United States Housing Act of 1937 [this section];

"(3) to significantly simplify the program of Federal assistance for capital improvements in public housing projects;

"(4) to provide increased opportunities and incentives for more efficient management of public housing projects; and

"(5) to afford public housing agencies greater control in planning and expending funds under the United States Housing Act of 1937 for the modernization, rehabilitation, maintenance, and improvement of public housing projects to benefit lower income families."

Section Referred to in Other Sections

This section is referred to in sections 1437c, 1437d, 1437r, 1437s, 1437v, 1437w, 1437bb, 1437aaa–3, 1439, 4822, 12742 of this title; title 12 section 1701u.

1 So in original. The period probably should be a semicolon.

2 See References in Text note below.

3 So in original. Probably should be paragraph "(2)".

4 See References in Text note below.

5 So in original. Probably should be subparagraphs "(D) and (E)".