COMPREHENSIVE IMPROVEMENT ASSISTANCE PROGRAM.

SEC. 119. COMPREHENSIVE IMPROVEMENT ASSISTANCE PROGRAM. (a) Purpose of Amendments.— It is the purpose of the amendments made by 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 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; (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. (b) Authority To Provide Financial Assistance.— Section 14(b) of the United States Housing Act of 1937 is amended— (A) by inserting “(1)” after the subsection designation; and (B) by adding at the end the following new paragraph: “(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) Applications by PHA’s Managing Less Than 500 Units.— Section 14(d) of the United States Housing Act of 1937 is amended in the matter preceding paragraph (1) by inserting after “subsection (b)” the following: “to a public housing agency that owns or operates less than 500 public housing dwelling units”. (d) Comprehensive Plans.— Section 14 of the United States Housing Act of 1937 is amended— (1) by redesignating subsection (e) as subsection (D; and (2) by inserting after subsection (d) the following new subsection: “(e) (1) No financial assistance may be made available under this section to a public housing agency that owns or operates 500 or more public housing dwelling units unless the Secretary approves (or has approved before the effective date of this subsection) a 5-year comprehensive plan submitted by the public housing agency, except that 101 STAT. 1831the 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 the date of the enactment of the Housing and Community Development Act of 1987, 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 101 STAT. 1832schedule, 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 lower 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 3(c)(2)); “(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, title VIII of the Act of April 11, 1968 (commonly known as the Civil Rights Act of 1968), and section 504 of the Rehabilitation Act of 1973; “(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 101 STAT. 1833housing 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 500 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. 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. 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. 101 STAT. 1834 “(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 500 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 snail 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 500 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, United States Code. 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 snail, to the greatest extent possible, respect the professional judgment of the administrators of the public housing agency.”. (e) Eligible Costs.— Section 14(f) of the United States Housing Act of 1937 (as so redesignated by this section) is amended— (1) by inserting “(1)” after the subsection designation; 101 STAT. 1835 (2) in the matter preceding paragraph (1), by inserting after “public housing agency” the following: “that owns or operates less than 500 public housing dwelling units”; (3) by redesignating paragraphs (1) through (4) as subparagraphs (A) through (D); and (4) by adding at the end the following new paragraph: “(2) A public housing agency that owns or operates 500 or more public housing dwelling units may use financial assistance received under subsection (b) only— “(A) to undertake activities described in its approved comprehensive plan under subsection (e)(1) or its annual statement under subsection (e)(3); “(B) to correct conditions that constitute an immediate threat to the health or safety of tenants and to meet special purpose needs described in section 14(i)(1)(D), 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), 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), an annual performance and evaluation report under subsection (e)(4)(A), and an audit under subsection (e)(4)(C).”. (f) Allocation of Assistance.— Section 14 of the United States Housing Act is amended by adding at the end the following new subsection: “(k) (1) Until the Congress establishes by law a revised method for allocating assistance under this section, assistance shall be allocated under this section in substantial accordance with the allocation method in effect on the date of the enactment of the Housing and Community Development Act of 1987. “(2) Not later than 1 year after the date of the enactment of the Housing and Community Development Act of 1987, the Secretary shall— “(A) complete the study of the need for public housing modernization initiated pursuant to the Department of Housing and Urban Development-Independent Agencies Appropriation Act, 1984 (Public Law 98–45) and any other studies that are necessary to evaluate the current condition and capital requirements of public housing as well as the future need for rehabilitation and replacement of public housing facilities; “(B) submit to the Congress proposed methods for determining the relative allocation of funds between activities to correct existing deficiencies and the annual accrual of resources to meet future needs; “(C) submit to the Congress proposed alternatives for allocating funds among public housing agencies to correct existing deficiencies, including formulas for distributing funds to public housing agencies, to regional and field offices of the Department of Housing and Urban Development, or to States, as well as such other allocation methods as the Secretary may wish to recommend; “(D) provide the Congress with— “(i) an analysis of data and other information used to develop recommendations for measuring existing deficiencies, future needs, and anticipated emergencies; 101 STAT. 1836 “(ii) an analysis of the bases underlying each of the proposed allocation methods; and “(iii) a comparison of proposed allocations to previous allocations under this section; “(E) propose to the Congress criteria for distinguishing capital replacement activities that are routine from those that are not routine; “(F) propose to the Congress alternative methods— “(i) to allocate funds to public housing agencies to meet predictable routine modernization and regular capital replacement expenses; and “(ii) provide for unpredictable, infrequent, or extraordinary future capital replacement needs through a fund administered on a national, regional, State, or local level or through such other methods as the Secretary may recommend; “(G) consult at least on a quarterly basis with organizations and individuals representing public housing agencies, local government, and tenants regarding progress on the studies referred to in subparagraph (A) and the development of alternatives for improving this section; and “(H) estimate, for not less than the 200 largest public housing agencies, the amount that will be received annually under each such alternative allocation system and compare such amounts to funds received in prior years under this section.”. (g) Annual Report.— Section 14 of the United States Housing Act (as amended by subsection (0 of this section) is further amended by adding at the end the following new subsection: “(l) The Secretary shall include in the annual report under section 8 of the Department of Housing and Urban Development Act— “(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 500 or more public housing dwelling units.”. (h) Regulations.— Section 14 of the United States Housing Act (as amended by subsection (g) of this section) is further amended by adding at the end the following new subsection: “(m) Subject to subsection (k)(1), the Secretary may issue any regulations that are necessary to carry out this section.”. (i) Conforming Amendments.— (1) Section 14(d) of the United States Housing Act of 1937 is amended in the matter preceding paragraph (1) by striking “subsection (e)(4)” and inserting “subsection (f)(4)”. (2) Section 14(i)(1) of the United States Housing Act of 1937 is amended in the matter preceding subparagraph (A) by inserting “(f),” after “(e),”. (3) Section 14(f) of the United States Housing Act of 1937 (as so redesignated by this section) is amended by striking “annual”. (4) Section 14(g) of the United States Housing Act of 1937 is amended by inserting “or (e)” after “subsection (d)(4)”. (5) Section 14(h)(2) of the United States Housing Act of 1937 is amended by inserting “or (e)” after “subsection (d)(4)”. 101 STAT. 1837 (6) Section 14(i) of the United States Housing Act of 1937 is amended by striking “subsections (c), (d), (e), (g), and (h)” and inserting “subsections (c) through (h)”.