PORTABILITY.

SEC. 553. PORTABILITY. Section 8(r) of the United States Housing Act of 1937 (42 U.S.C. 1437f(r)) is amended— (1) in paragraph (2), by striking the last sentence; 112 STAT. 2611 (2) in paragraph (3))— (A) by striking “(b) or”; and (B) by adding at the end the following: “The Secretary shall establish procedures for the compensation of public housing agencies that issue vouchers to families that move into or out of the jurisdiction of the public housing agency under portability procedures. The Secretary may reserve amounts available for assistance under subsection (o) to compensate those public housing agencies.”; (3) by striking “(r)” and all that follows through the end of paragraph (1) and inserting the following: “(r) Portability.— (1) In general.— (A) Any family receiving tenant-based assistance under subsection (o) may receive such assistance to rent an eligible dwelling unit if the dwelling unit to which the family moves is within any area in which a program is being administered under this section. “(B) (i) Notwithstanding subparagraph (A) and subject to any exceptions established under clause (ii) of this subparagraph, a public housing agency may require that any family not living within the jurisdiction of the public housing agency at the time the family applies for assistance from the agency shall, during the 12-month period beginning on the date of initial receipt of housing assistance made available on behalf of the family from such agency, lease and occupy an eligible dwelling unit located within the jurisdiction served by the agency. “(ii) The Secretary may establish such exceptions to the authority of public housing agencies established under clause (i).”; and (5) by adding at the end the following new paragraph: “(5) Lease violations.— A family may not receive a voucher from a public housing agency and move to another jurisdiction under the tenant-based assistance program if the family has moved out of the assisted dwelling unit of the family in violation of a lease.”.