Pub. L. 104-99, tit. IV, sec. 402

Sec. 402. (a) Minimum Rents.— Notwithstanding sections 3(a) and 8(o)(2) of the United States Housing Act of 1937, as amended, effective for fiscal year 1996 and no later than October 30, 1995— (1) public housing agencies shall require each family who is assisted under the certificate or moderate rehabilitation program under section 8 of such Act to pay a minimum monthly rent of not less than $25, and may require a minimum monthly rent of up to $50; (2) public housing agencies shall reduce the monthly assistance payment on behalf of each family who is assisted under the voucher program under section 8 of such Act so that the family pays a minimum monthly rent of not less than $25, and may require a minimum monthly rent of up to $50; (3) with respect to housing assisted under other programs for rental assistance under section 8 of such Act, the Secretary shall require each family who is assisted under such program to pay a minimum monthly rent of not less than $25 for the unit, and may require a minimum monthly rent of up to $50; and (4) public housing agencies shall require each family who is assisted under the public housing program (including public housing for Indian families) of such Act to pay a minimum monthly rent of not less than $25, and may require a minimum monthly rent of up to $50. (b) Establishment of Ceiling Rents.— (1) Section 3(a)(2) of the United States Housing Act of 1937 is amended to read as follows: “(2) Notwithstanding paragraph (1), a public housing agency may— “(A) adopt ceiling rents that reflect the reasonable market value of the housing, but that are not less than the monthly costs— “(i) to operate the housing of the agency; and “(ii) to make a deposit to a replacement reserve (in the sole discretion of the public housing agency); and “(B) allow families to pay ceiling rents referred to in subparagraph (A), unless, with respect to any family, the ceiling rent established under this paragraph would exceed the amount payable as rent by that family under paragraph (1).”. (2) Regulations.— 110 STAT. 41 (A) In general.— The Secretary shall, by regulation, after notice and an opportunity for public comment, establish such requirements as may be necessary to carry out section 3(a)(2)(A) of the United States Housing Act of 1937, as amended by paragraph (1). (B) Transition rule.— Prior to the issuance of final regulations under paragraph (1), a public housing agency may implement ceiling rents, which shall be not less than the monthly costs to operate the housing of the agency and— (i) determined in accordance with section 3(a)(2)(A) of the United States Housing Act of 1937, as that section existed on the day before enactment of this Act; (ii) equal to the 95th percentile of the rent paid for a unit of comparable size by tenants in the same public housing project or a group of comparable projects totaling 50 units or more; or (iii) equal to the fair market rent for the area in which the unit is located. (c) Definition of Adjusted Income.— Section 3(b)(5) of the United States Housing Act of 1937 is amended— (1) at the end of subparagraph (F), by striking “and”; (2) at the end of subparagraph (G), by striking the period and inserting “; and”; and (3) by inserting after subparagraph (G) the following: “(H) for public housing, any other adjustments to earned income established by the public housing agency. If a public housing agency adopts other adjustments to income pursuant to subparagraph (H), the Secretary shall not take into account any reduction of or increase in the public housing agency’s per unit dwelling rental income resulting from those adjustments when calculating the contributions under section 9 for the public housing agency for the operation of the public housing.”. (d) Repeal of Federal Preferences — (1) Public housing.— Section 6(c)(4)(A) of the United States Housing Act of 1937 (42 U.S.C. 1437d(c)(4)(A)) is amended to read as follows: “(A) the establishment, after public notice and an opportunity for public comment, of a written system of preferences for admission to public housing, if any, that is not inconsistent with the comprehensive housing affordability strategy under title I of the Cranston-Gonzalez National Affordable Housing Act;”. (2) Section s existing and moderate rehabilitation.— Section 8(d)(1)(A) of the United States Housing Act of 1937 (42 U.S.C. 1437f(d)(1)(A)) is amended to read as follows: “(A) the selection of tenants shall be the function of the owner, subject to the provisions of the annual contributions contract between the Secretary and the agency, except that for the certificate and moderate rehabilitation programs only, for the purpose of selecting families to be assisted, the public housing agency may establish, after public notice and an opportunity for public comment, a written system of preferences for selection that is not inconsistent with the comprehensive housing affordability 110 STAT. 42strategy under title I of the Cranston-Gonzalez National Affordable Housing Act;”. (3) Section 8 voucher program.— Section 8(e)(3)(B) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(3)(B)) is amended to read as follows: “(B) For the purpose of selecting families to be assisted under this subsection, the public housing agency may establish, after public notice and an opportunity for public comment, a written system of preferences for selection that is not inconsistent with the comprehensive housing affordability strategy under title I of the Cranston-Gonzalez National Affordable Housing Act.”. (4) Section 8 new construction and substantial rehabilitation.— (A) Repeal.— Section 545(c) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 1437f note) is amended to read as follows: “(c) [Reserved.]”. (B) Prohibition.— Notwithstanding any other provision of law, no Federal tenant selection preferences under the United States Housing Act of 1937 shall apply with respect to— (i) housing constructed or substantially rehabilitated pursuant to assistance provided under section 8(b)(2) of the United States Housing Act of 1937 (as such section existed on the day before October 1, 1983); or (ii) projects financed under section 202 of the Housing Act of 1959 (as such section existed on the day before the date of enactment of the Cranston-Gonzalez National Affordable Housing Act). (5) Rent supplements.— Section 101(k) of the Housing and Urban Development Act of 1965 (12 U.S.C. 1701s(k)) is amended to read as follows: “(k) [Reserved.]”. (6) Conforming amendments.— (A) United states housing act of 1937.— The United States Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended— (i) in section 6(0), by striking “preference rules specified in” and inserting “written system of preferences for selection established pursuant to”; (ii) in the second sentence of section 7(a)(2), by striking “according to the preferences for occupancy under” and inserting “in accordance with the written system of preferences for selection established pursuant to”; (iii) in section 8(d)(2)(A), by striking the last sentence; (iv) in section 8(d)(2)(H), by striking “Notwithstanding subsection (d)(1)(A)(i), an” and inserting “An”; (v) in section 16(c), in the second sentence, by striking “the system of preferences established by the agency pursuant to section 6(c)(4)(A)(ii)” and inserting “the written system of preferences for selection established by the public housing agency pursuant to section 6(c)(4)(A)”; and 110 STAT. 43 (vi) in section 24(e)— (I) by striking “(e) Exceptions” and all that follows through “The Secretary may” and inserting the following: “(e) Exception to General Program Requirements— The Secretary may”; and (II) by striking paragraph (2). (B) Cranston-gonzalez national affordable housing act.— Section 522(f)(6)(B) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12704 et seq.) is amended by striking “any preferences for such assistance under section 8(d)(1)(A)(i)” and inserting “the written system of preferences for selection established pursuant to section 8(d)(1)(A)”. (C) Housing and community development act of 1992.— Section 655 of the Housing and Community Development Act of 1992 (42 U.S.C. 13615) is amended by striking “the preferences” and all that follows up to the period at the end and inserting “any preferences”. (D) References in other law.— Any reference in any Federal law other than any provision of any law amended by paragraphs (1) through (5) of this subsection to the preferences for assistance under section 6(c)(4)(A)(i), 8(d)(1)(A)(i), or 8(o)(3)(B) of the United States Housing Act of 1937 (as such sections existed on the day before the date of enactment of this Act) shall be considered to refer to the written system of preferences for selection established pursuant to section 6(c)(4)(A), 8(d)(1)(A), or 8(o)(3)(B), respectively, of the United States Housing Act of 1937, as amended by this section. (e) Applicability.— In accordance with section 201(b)(2) of the United States Housing Act of 1937, the amendments made by subsections (a), (b), (c), (d), and (f) of this section shall also apply to public housing developed or operated pursuant to a contract between the Secretary of Housing and Urban Development and an Indian housing authority. (f) This section shall be effective upon the enactment of this Act and only for fiscal year 1996.