RESIDENT COUNCILS AND RESIDENT MANAGEMENT CORPORATIONS.

SEC. 532. RESIDENT COUNCILS AND RESIDENT MANAGEMENT CORPORATIONS. (a) Resident Management.— Section 20 of the United States Housing Act of 1937 (42 U.S.C. 1437r) is amended— (1) in subsection (b)(4), by inserting after “materials” the following: “, rent determination, community service requirements,”; (2) by striking subsection (c) and inserting the following new subsection: “(c) Assistance Amounts.— A contract under this section for management of a public housing project by a resident management corporation shall provide for— “(1) the public housing agency to provide a portion of the assistance to agency from the Capital and Operating Funds to the resident management corporation in accordance with subsection (e) for purposes of operating the public housing project covered by the contract and performing such other eligible activities with respect to the project as may be provided under the contract; “(2) the amount of income expected to be derived from the project itself (from sources such as rents and charges); “(3) the amount of income to be provided to the project from the other sources of income of the public housing agency (such as interest income, administrative fees, and rents); and “(4) any income generated by a resident management corporation of a public housing project that exceeds the income estimated under the contract shall be used for eligible activities under subsections (d)(1) and (e)(1) of section 9.”; (3) in subsection (d), by striking paragraph (3) and redesignating paragraph (4) as paragraph (3); (4) in subsection (e)— (A) by redesignating paragraph (4) as paragraph (6); (B) by striking the subsection designation and heading and all that follows through the end of paragraph (3) and inserting the following: “(e) Direct Provision of Operating and Capital Assistance.— “(1) In general.— The Secretary shall directly provide assistance from the Operating and Capital Funds to a resident management corporation managing a public housing development pursuant to a contract under this section, but only if— “(A) the resident management corporation petitions the Secretary for the release of the funds; 112 STAT. 2575 “(B) the contract provides for the resident management corporation to assume the primary management responsibilities of the public housing agency ; and “(C) the Secretary determines that the corporation has the capability to effectively discharge such responsibilities. “(2) Use of assistance.— Any assistance from the Operating and Capital Funds provided to a resident management corporation pursuant to this subsection shall be used for purposes of operating the public housing developments of the agency and performing such other eligible activities with respect to public housing as may be provided under the contract. “(3) Responsibility of public housing agency.— If the Secretary provides direct funding to a resident management corporation under this subsection, the public housing agency shall not be responsible for the actions of the resident management corporation. “(4) Calculation of operating fund allocation.— Notwithstanding any provision of section 9 or any regulation under such section, and subject to the exception provided in paragraph (3), the portion of the amount received by a public housing agency under section 9 that is due to an allocation from the Operating Fund and that is allocated to a public housing project managed by a resident management corporation shall not be less than the public housing agency per unit monthly amount provided in the previous year as determined on an individual project basis. “(5) Calculation of total income.— “(A) Subject to subparagraph (B), the amount of funds provided by a public housing agency to a public housing project managed by a resident management corporation may not be reduced during the 3-year period beginning on the date of the enactment of the Housing and Community Development Act of 1987 or on any later date on which a resident management corporation is first established for the project. “(B) If the total income of a public housing agency (including any amounts from the Capital or Operating Funds provided to the public housing agency under section 9) is reduced or increased, the income provided by the public housing agency to a public housing project managed by a resident management corporation shall be reduced or increased in proportion to the reduction or increase in the total income of the public housing agency, except that any reduction in amounts from the Operating Fund that occurs as a result of fraud, waste, or mismanagement by the public housing agency shall not affect the funds provided to the resident management corporation.”; and (C) in paragraph (6)(A) (as so redesignated by subparagraph (A) of this paragraph), by striking “the operating subsidies provided to” and inserting “the allocations from the Operating Fund for”; and (5) by striking subsections (f) and (g). (b) Purchase By Resident Management Corporations.— Section 21 of the United States Housing Act of 1937 (42 U.S.C. 1437s) is amended— (1) in subsection (a)— 112 STAT. 2576 (A) in paragraph (2)(A), by striking “comprehensive improvement assistance under section 14” and inserting “assistance from the Capital Fund”; (B) in paragraph (3)(A)(v), by striking “minimum safety and livability standards applicable under section 14” and inserting “housing quality standards applicable under section 6(f)”; (C) in paragraph (7)— (i) by striking “Annual contributions” and inserting “Capital and operating assistance”; (ii) in the first sentence, by striking “pay annual contributions” and inserting “provide assistance under section 9”; and (iii) by striking the last sentence and inserting the following: “Such assistance may not exceed the allocation for the project under section 9.”; and (D) in paragraph (8), by striking “Operating subsidies.—Operating subsidies” and inserting “ Operating fund allocation.—Amounts from the Operating Fund”; (2) in subsection (b)(3)— (A) by striking “a certificate under section 8(b)(1) or a housing voucher” and inserting “tenant-based assistance”; and (B) by striking “fair market rent for such certificate” and inserting “payment standard for such assistance”; and (3) in subsection (d), by inserting “, as in effect before the effective date under section 503(a) of the Quality Housing and Work Responsibility Act of 1998,” after “section 6(c)(4)(D)”.