REVITALIZATION OF SEVERELY DISTRESSED PUBLIC HOUSING.

SEC. 120. REVITALIZATION OF SEVERELY DISTRESSED PUBLIC HOUSING. Title I of the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended by adding at the end the following new section: 106 STAT. 3696 “SEC. 24. REVITALIZATION OF SEVERELY DISTRESSED PUBLIC HOUSING. “(a) Program Authority.— The Secretary may make— “(1) planning grants under subsection (c) to enable applicants to develop revitalization programs for severely distressed public housing in accordance with this section; and “(2) implementation grants under subsection (d) to carry out revitalization programs for severely distressed public housing in accordance with this section. “(b) Designation of Eligible Projects.— “(1) Identification.—Not later than 90 days after the date of enactment of the Housing and Community Development Act of 1992, public housing agencies shall identify, in such form and manner as the Secretary may prescribe, any public housing projects that they consider to be severely distressed public housing for purposes of receiving assistance under this section. “(2) Review by secretary.—The Secretary shall review the projects identified pursuant to paragraph (1) to ascertain whether the projects are severely distressed housing (as such item is defined in subsection (n)). Not later than 180 days after the date of enactment of this section, the Secretary shall publish a list of those projects that the Secretary determines are severely distressed public housing. “(3) Appeal of secretary’s determination.—The Secretary shall establish procedures for public housing agencies to appeal the Secretary’s determination that a project identified by a public housing agency is not severely distressed. “(c) Planning Grants.— “(1) In general.—The Secretary may make planning grants under this subsection to applicants for the purpose of developing revitalization programs for severely distressed public housing under this section. “(2) Amount.—The amount of a planning grant under this subsection may not exceed $200,000 per project, except that the Secretary may for good cause approve a grant in a higher amount. “(3) Eligible activities.— A planning grant may be used for activities to develop revitalization programs for severely distressed public housing, including— “(A) studies of the different options for revitalization, including the feasibility, costs and neighborhood impact of such options; “(B) providing technical or organizational support to ensure resident involvement in all phases of the planning and implementation processes; “(C) improvements to stabilize the development, including security investments; “(D) conducting workshops to ascertain the attitudes and concerns of the neighboring community; “(E) preliminary architectural and engineering work; “(F) planning for economic development, job training and self-sufficiency activities that promote the economic self-sufficiency of residents under the revitalization program; “(G) designing a suitable replacement housing plan, in situations where partial or total demolition is considered; 106 STAT. 3697 “(H) planning for necessary management improvements; and “(I) preparation of an application for an implementation grant under this section. “(4) Applications.— An application for a planning grant shall be submitted in such form and in accordance with such procedures as the Secretary shall establish. The Secretary shall require that an application contain at a minimum— “(A) a request for a planning grant, specifying the activities proposed, the schedule for completing the activities, the personnel necessary to complete the activities and the amount of the grant requested; “(B) a description of the applicant and a statement of its qualifications; “(C) identification and description of the project involved, and a description of the composition of the ten- ants, including family size and income; “(D) a certification by the public official responsible for submitting the comprehensive housing affordability strategy under section 105 of the Cranston-Gonzalez National Affordable Housing Act that the proposed activities are consistent with the approved housing strategy of the State or unit of general local government within which the project is located; and “(E) a certification that the applicant will comply with the requirements of the Fair Housing Act, title VI of the Civil Rights Act of 1964, section 504 of the Rehabilitation Act of 1973, and the Age Discrimination Act of 1975, and will affirmatively further fair housing. “(5) Selection criteria.— The Secretary shall, by regulation, establish selection criteria for a national competition for assistance under this subsection, which shall include— “(A) the qualities or potential capabilities of the applicant; “(B) the extent of resident interest and involvement in the development of a revitalization program for the project; “(C) the extent of involvement of local public and private entities in the development of a revitalization program for the project and in the provision of supportive services to project residents; “(D) the potential of the applicant for developing a successful and affordable revitalization program and the suitability of the project for such a program; “(E) national geographic diversity among housing for which applicants are selected to receive assistance; “(F) the extent of the need for and potential impact of the revitalization program; and “(G) such other factors that the Secretary determines are appropriate for purposes of carrying out the program established by this section in an effective and efficient manner. “(6) Notification.— The Secretary shall notify each applicant, not later than 6 months after the date of the submission of the application, whether the application is approved or disapproved. “(d) Implementation Grants.— 106 STAT. 3698 “(1) In general.—The Secretary may make implementation grants under this subsection to applicants for the purpose of carrying out revitalization programs for severely distressed public housing under this section. “(2) Eligible activities.— Implementation grants may be used for activities to carry out revitalization programs for severely distressed public housing, including— “(A) architectural and engineering work; “(B) the redesign, reconstruction, or redevelopment of the severely distressed public housing development, including the site on which the development is located; “(C) covering the administrative costs of the applicant, which may not exceed such portion of the assistance provided under this subsection as the Secretary may prescribe; “(D) any necessary temporary relocation of tenants during the activity specified under subparagraph (B); “(E) payment of legal fees; “(F) economic development activities that promote the economic self-sufficiency of residents under the revitalization program; “(G) necessary management improvements; “(H) transitional security activities; and “(I) any necessary support services, except that not more than 15 percent of any grant under this subsection may be used for such purpose. “(3) Application.— An application for a implementation grant shall be submitted by an applicant in such form and in accordance with such procedures as the Secretary shall establish. The Secretary shall require that an application contain at a minimum— “(A) a request for an implementation grant, specifying the amount of the grant requested and its proposed uses; “(B) a description of the applicant and a statement of its qualifications; “(C) identification and description of the project involved, and a description of the composition of the ten-ants, including family size and income; “(D) a certification by the public official responsible for submitting the comprehensive housing affordability strategy under section 105 of the Cranston-Gonzalez National Affordable Housing Act that the proposed activities are consistent with the approved housing strategy of the State or unit of general local government within which the project is located; and “(E) a certification that the applicant will comply with the requirements of the Fair Housing Act, title VI of the Civil Rights Act of 1964, section 504 of the Rehabilitation Act of 1973, and the Age Discrimination Act of 1975, and will affirmatively further fair housing. “(4) Selection criteria.— The Secretary shall, by regulation, establish selection criteria for a national competition for assistance under this subsection, which shall include— “(A) the qualities or potential capabilities of the applicant; “(B) the extent of resident involvement in the development of a revitalization program for the project; 106 STAT. 3699 “(C) the extent of involvement of local public and private entities in the development of a revitalization program for the project and in the provision of supportive services to project residents; “(D) the potential of the applicant for developing a successful and affordable revitalization program and the suitability of the project for such a program; “(E) national geographic diversity among housing for which applicants are selected to receive assistance; “(F) the extent of the need for and potential impact of the revitalization program; and “(G) such other factors that the Secretary determines are appropriate for purposes of carrying out the program established by this subtitle in an effective and efficient manner. “(5) Notification.—The Secretary shall notify each applicant, not later than 6 months after the date of the submission of the application, whether the application is approved or disapproved. “(e) Exceptions to General Program Requirements.— “(1) Long-term viability.—The Secretary may waive or revise rules established under this title governing rents, income eligibility, and other areas of public housing management, to permit a public housing agency to undertake measures that enhance the long-term viability of a severely distressed public housing project revitalized under this section. “(2) Selection of tenants.—For projects revitalized under this section, a public housing agency may select tenants pursuant to a local system of preferences, in lieu of selecting tenants pursuant to the preferences specified under section 6(c)(4)(A)(i). Such local system shall be established in writing and shall respond to local housing needs and priorities as determined by the public housing agency. The public housing agency shall hold 1 or more public hearings to obtain the views of low- income tenants and other interested parties on the housing needs and priorities of the agency’s jurisdiction. “(f) Other Program Requirements.— “(1) Cost limitations.— Subject to the provisions of this section, the Secretary— “(A) shall establish cost limitations on eligible activities under this section sufficient to provide for effective revitalization programs; and “(B) may establish other cost limitations on eligible activities under this section. “(2) Economic development.—Not more than an aggregate of $250,000 from amounts made available under sub-sections (c) and (d) may be used for economic development activities under subsections (c) and (d) for any project, except that the Secretary may for good cause waive the applicability of this paragraph for a project. “(g) Administration.—For the purpose of carrying out the revitalization of severely distressed public housing in accordance with this section, the Secretary shall establish within the Department of Housing and Urban Development an Office of Severely Distressed Public Housing Revitalization. “(h) Definitions.—For the purposes of this section: “(1) Applicant.— The term ‘applicant’ means— 106 STAT. 3700 “(A) any public housing agency that is not designated as troubled pursuant to section 6(j)(2); “(B) any public housing agency or private housing management agent selected, or receiver appointed pursuant, to section 6(j)(3); “(C) any public housing agency that is designated as troubled pursuant to section 6(j)(2), if such agency acts in concert with a private nonprofit organization, another public housing agency that is not designated as a troubled agency, resident management corporation or other entity approved by the Secretary; and “(D) any public housing agency that is designated as troubled pursuant to section 6(j)(2) that— “(i) is so designated principally for reasons that will not affect the capacity of the agency to carry out a revitalization program; “(ii) is making substantial progress toward eliminating the deficiencies of the agency; or “(iii) is otherwise determined by the Secretary to be capable of carrying out a revitalization program. “(2) Private nonprofit corporation.—The term ‘private nonprofit organization’ means any private nonprofit organization (including a State or locally chartered nonprofit organization) that— “(A) is incorporated under State or local law; “(B) has no part of its net earnings inuring to the benefit of any member, founder, contributor, or individual; “(C) complies with standards of financial accountability acceptable to the Secretary; and “(D) has among its purposes significant activities related to the provision of decent housing that is affordable to very low-income families. “(3) Public housing agency.—The term ‘public housing agency’ has the meaning given the term in section 3(b), except that it does not include any Indian housing authority. “(4) Resident management corporation.—The term ‘resident management corporation’ means a resident management corporation established in accordance with the requirements of the Secretary under section 20. “(5) Severely distressed public housing.— The term ‘severely distressed public housing’ means a public housing project— “(A) that— “(i) requires major redesign, reconstruction or redevelopment, or partial or total demolition, to correct serious deficiencies in the original design (including appropriately high population density), deferred maintenance, physical deterioration or obsolescence of major systems and other deficiencies in the physical plant of the project; “(ii) is occupied predominantly by families with children who are in a severe state of distress, characterized by such factors as high rates of unemployment, teenage pregnancy, single-parent households, long-term dependency on public assistance and minimal educational achievement; 106 STAT. 3701 “(iii) is in a location for recurrent vandalism and criminal activity (including drug-related criminal activity); and “(iv) cannot remedy the elements of distress specified in clauses (i) through (iii) through assistance under other programs, such as the programs under section 9 or 14, or through other administrative means; or “(B) that— “(i) is owned by a public housing agency designated as troubled pursuant to section 6(j)(2); “(ii) has a vacancy rate, as determined by the Secretary, of 50 percent or more, unless the project or building is vacant because it is awaiting rehabilitation under a modernization program under section 14 that— “(I) has been approved and funded; and “(II) as determined by the Secretary, is on schedule and is expected to result in full occupancy of the project or building upon completion of the program; and “(iii) in the case of individual buildings, the building is, in the Secretary’s determination, sufficiently separable from the remainder of the project to make use of the building feasible for purposes of this subtitle. “(i) Annual Report.—The Secretary snail submit to the Congress an annual report setting forth— “(1) the number, type, and cost of public housing units revitalized pursuant to this section; “(2) the status of projects identified as severely distressed public housing pursuant to subsection (b); “(3) the amount and type of financial assistance provided under and in conjunction with this section; and “(4) the recommendations of the Secretary for statutory and regulatory improvements to the program established by this section.”.