experimental housing allowance program

experimental housing allowance program Sec. 504. (a) In carrying out activities under section 501, the Secretary shall undertake on an experimental basis a program to demonstrate the feasibility of providing families of low income with housing allowances to assist them in obtaining rental housing of their choice in existing standard housing units. For this purpose, the Secretary is authorized to pay and to contract to pay, subject to the limitations of this section, monthly housing allowances to such families in localities determined by the Secretary to have an adequate supply of such housing units. (b) The housing allowance provided to any family of low income shall not exceed the difference between 25 per centum of the family’s income and the maximum fair market rental established in the locality by the Secretary for dwelling units of similar size in projects receiving annual payments under contracts authorized by section 101 (a) of the Housing and Urban Development Act of 1965. The Secretary shall make the payment of any such allowance to any such family conditional upon an agreement by the family that the allowance will be used solely for the payment of rent for occupancy in existing standard housing. (c) The Secretary is authorized to contract with public or private organizations to provide the services required in the selection of families of low income for the distribution of monthly housing allowance payments to such families. In contracting with such organizations, the Secretary is authorized (without limiting his authority under any other provision of law) to delegate to such organizations the authority to make the ministerial findings necessary to enable the Secretary to make such payments to families selected by such organizations. (d) The Secretary is authorized to pay and to contract to pay (in an aggregate amount not to exceed $10,000,000 in each of the fiscal years 1972 and 1973) monthly housing allowance payments to families of low income pursuant to this section. There are authorized to be appropriated, out of any money in the Treasury not otherwise appropriated. such sums as may be necessary to make payments under this subsection. (e) The Secretary shall, as early as practicable in the calendar years 1972 and 1973 make a report to the respective Committees on Banking and Currency of the Senate and House of Representatives with respect to the administration of the program authorized by this section, together with any recommendations that he may deem appropriate. (f) As used in this section— (1) The term “families of low income” has the same meaning as in section 2 (2) of the United States Housing Act of 1937. (2) The term “existing standard housing” means a rental unit which meets standards prescribed by the Secretary. (g) No housing allowance payments pursuant to this section shall be made after June 30, 1973.