PUBLIC HOUSING COMPREHENSIVE TRANSITION DEMONSTRATION.

SEC. 126. PUBLIC HOUSING COMPREHENSIVE TRANSITION DEMONSTRATION. (a) Establishment of Demonstration Program — The Secretary of Housing and Urban Development (in this section referred to as 101 STAT. 1848the “Secretary”) shall carry out a program to demonstrate the effectiveness of providing a comprehensive program of services to participating public housing residents in order to ensure the successful transition of such residents to private housing. In carrying out the demonstration program, the Secretary shall consult with the heads of other appropriate Federal agencies to design and implement procedures to carry out the transition from public housing. (b) Scope of Demonstration Program.— The Secretary shall carry out the demonstration program with respect to public housing administered by the Housing Authority of the City of Charlotte, in the State of North Carolina. The Secretary may also carry out the demonstration program with respect to public housing administered by not more than 10 additional public housing agencies. (c) Requirements of Demonstration Program.— The demonstration program shall consist of the following requirements: (1) Contract of participation.— Each participating public housing agency may enter into a voluntary contract with any family that is to commence residence in a public housing project administered by the public housing agency. The contract shall be made part of the lease, shall set forth the provisions of the demonstration program, and shall specify the resources to be made available to the participating family and the responsibilities of the participating family. (2) Remediation phase.— (A) During not to exceed the first 2 years of residence of a participating family in public housing, the public housing agency shall ensure the provision of remediation services to the family in accordance with the terms and conditions of the contract of participation, which may include— (i) remedial education; (ii) completion of high school; (iii) job training and preparation; (iv) substance abuse treatment and counseling; (v) training in homemaking skills and parenting; and (vi) training in money management. (B) During the remediation phase, the amount of rent charged the family may not be increased on the basis of any increase in earned income of the family. (3) Transition phase.— (A) During not to exceed a 5-year period following completion of the remediation stage— (i) the head of the family shall be required to have full-time employment; and (ii) the public housing agency shall ensure the provision of counseling for the family with respect to homeownership, money management, and problem solving. (B) During the transition phase, the amount of rent charged the family— (i) may be increased on the basis of any increase in family income; and (ii) may not be decreased on the basis of any decrease in earned income due to voluntary termination of employment. (4) Encouragement of savings.— The public housing agency shall take appropriate actions (including the establishment of an escrow savings account) to encourage each participating 101 STAT. 1849family to save funds during the remediation and transition phases. (5) Effect of increases in family income.— (A) Any increase in the earned income of a family during participation in the demonstration program under this section may not be considered as income or a resource for the purpose of denying the eligibility of, or reducing the amount of benefits payable to, the family under any other Federal law, unless the income of the family increases at any time to not less than 50 percent of the median income of the area (as determined by the Secretary with adjustments for smaller and larger families). (B) If at any time during the participation of a family in the demonstration program the income of the family increases to not less than 80 percent of the median income of the area (as determined by the Secretary with adjustments for smaller and larger families), the participation of the family in the demonstration program shall terminate. (6) Completion of transition.— Each family participating in the demonstration program shall be required to complete the transition out of public housing during a period of not more than 7 years. The public housing agency shall extend the period for any family that requests an extension for good cause. (d) Reports to Congress.— (1) Interim report.— Not later than 2 years after the date of the enactment of this Act, the Secretary shall submit to the Congress an interim report evaluating the effectiveness of the demonstration program under this section. (2) Final report.— Not later than 60 days after the termination of the demonstration program under subsection (f), the Secretary shall submit to the Congress a final report evaluating the effectiveness of the demonstration program under this section. (e) Regulations.— The Secretary shall issue such regulations as may be necessary to carry out this section. (f) Termination of Demonstration Program.— The demonstration program under this section shall terminate upon the expiration of the 7-year period beginning on the date of the enactment of this Act.