TENANT RENTAL CONTRIBUTIONS.

SEC. 102. TENANT RENTAL CONTRIBUTIONS. (a) Economic Rent.— Section 3(a) of the United States Housing Act of 1937 is amended— (1) by inserting “(1)” after “(a)”; (2) in the last sentence, by striking “A” and inserting the following: “Except as provided in paragraph (2), a”; (3) by redesignating paragraphs (1) through (3) as subparagraphs (A) through (C), respectively; and (4) by adding at the end the following new paragraph: “(2) (A) Any public housing agency may provide that each family residing in a public housing project owned and operated by such agency (or in lower income housing assisted under section 8 that contains more than 2,000 dwelling units) shall pay as monthly rent for not more than a 3-year period an amount determined by such agency to be appropriate that does not exceed a maximum amount that— “(i) is established by such agency and approved by the Secretary; “(ii) is not more than the amount payable as rent by such family under paragraph (1); and “(iii) is not less than the average monthly amount of debt service and operating expenses attributable to dwelling units of similar size in public housing projects owned and operated by such agency. “(B) The 3-year limitation established in subparagraph (A) shall not apply to any family residing in a public housing project administered by an Indian public housing agency.”. (b) Utility Allowance.— (1) The Comptroller General of the United States shall submit to the Congress not later than October 30, 1988, a report regarding the utility allowances provided to the residents of public housing and housing assisted under section 8 of the United States Housing Act of 1937. (2) The report shall include the following: (A) A description of the manner in which public housing agencies are currently calculating utility allowances, 101 STAT. 1822including a national survey of the calculation methods used. (B) An estimate of the number of residents of public housing and housing assisted under section 8 of the United States Housing Act of 1937 paying more than 30 percent of monthly adjusted income for rent and utilities, including a separate estimate for each meter category. (C) Recommendations for revisions that may be made in current law to ensure that— (i) utility allowances will not differ solely because of the metering system of the dwelling unit; (ii) residents of public housing and housing assisted under section 8 of the United States Housing Act of 1937 will not pay more than 30 percent of monthly adjusted income for rent and utilities; and (iii) such residents will have a strong incentive to conserve energy and reduce utility costs, and residents who waste substantial amounts of energy will be penalized. (D) A description of administratively feasible methods of ensuring that utility allowances will reflect differences in the size, location, and energy-conserving condition of different types of dwelling units and appliances. (E) An estimate of the costs that will be associated with any recommendation made under subparagraph (C). (3) In preparing the report under this subsection, the Comptroller General shall consult with the Secretary of Housing and Urban Development, other appropriate Federal officials, other knowledgeable individuals, and national and other organizations representing public housing agencies, local governments, tenants, and energy conservation interests.