[House Report 110-507]
[From the U.S. Government Publishing Office]
110th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 110-507
======================================================================
HOPE VI IMPROVEMENT AND REAUTHORIZATION ACT OF 2007
_______
January 3, 2008.--Committed to the Committee of the Whole House on the
State of the Union and ordered to be printed
_______
Mr. Frank of Massachusetts, from the Committee on Financial Services,
submitted the following
R E P O R T
together with
ADDITIONAL VIEWS
[To accompany H.R. 3524]
[Including cost estimate of the Congressional Budget Office]
The Committee on Financial Services, to whom was referred the
bill (H.R. 3524) to reauthorize the HOPE VI program for
revitalization of severely distressed public housing, and for
other purposes, having considered the same, report favorably
thereon with an amendment and recommend that the bill as
amended do pass.
CONTENTS
Page
Amendment........................................................ 2
Purpose and Summary.............................................. 12
Background and Need for Legislation.............................. 13
Hearings......................................................... 15
Committee Consideration.......................................... 15
Committee Votes.................................................. 15
Committee Oversight Findings..................................... 16
Performance Goals and Objectives................................. 16
New Budget Authority, Entitlement Authority, and Tax Expenditures 16
Committee Cost Estimate.......................................... 16
Congressional Budget Office Estimate............................. 16
Federal Mandates Statement....................................... 17
Advisory Committee Statement..................................... 18
Constitutional Authority Statement............................... 18
Applicability to Legislative Branch.............................. 18
Earmark Identification........................................... 18
Section-by-Section Analysis of the Legislation................... 18
Changes in Existing Law Made by the Bill, as Reported............ 22
Additional Views................................................. 43
Amendment
The amendment is as follows:
Strike all after the enacting clause and insert the
following:
SECTION 1. SHORT TITLE; REFERENCES; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``HOPE VI Improvement
and Reauthorization Act of 2007''.
(b) References.--Except as otherwise expressly provided in this Act,
wherever in this Act an amendment or repeal is expressed in terms of an
amendment to, or repeal of, a section or other provision, the reference
shall be considered to be made to a section or other provision of the
United States Housing Act of 1937 (42 U.S.C. 1437 et seq.).
(c) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title; references; table of contents.
Sec. 2. Purposes of program.
Sec. 3. Authority to waive contribution requirement in cases of extreme
distress or emergency.
Sec. 4. Prohibition of demolition-only grants.
Sec. 5. Repeal of main street projects grant authority.
Sec. 6. Eligible activities.
Sec. 7. Selection of proposals for grants.
Sec. 8. Requirements for mandatory core components.
Sec. 9. Planning and technical assistance grants.
Sec. 10. Annual report; availability of documents.
Sec. 11. Definitions.
Sec. 12. Conforming amendment.
Sec. 13. Authorization of appropriations.
Sec. 14. Extension of program.
Sec. 15. Review.
Sec. 16. Regulations.
SEC. 2. PURPOSES OF PROGRAM.
Subsection (a) of section 24 of the United States Housing Act of 1937
(42 U.S.C. 1437v(a)) is amended--
(1) in paragraph (1), by inserting before ``through'' the
following: ``located in communities of all sizes, including
small- and medium-sized communities,'';
(2) in paragraph (3)--
(A) by inserting ``low- and'' before ``very low-
income''; and
(B) by striking ``and'' at the end;
(3) in paragraph (4), by striking the period at the end and
inserting ``; and''; and
(4) by adding at the end the following new paragraph:
``(5) promoting housing choice among low- and very low-income
families.''.
SEC. 3. AUTHORITY TO WAIVE CONTRIBUTION REQUIREMENT IN CASES OF EXTREME
DISTRESS OR EMERGENCY.
Subsection (c) of section 24 is amended by adding at the end the
following new paragraph:
``(4) Waiver.--
``(A) Authority.--The Secretary may waive the
applicability of paragraph (1) with respect to an
applicant or grantee if the Secretary determines that
circumstances of extreme distress or emergency, in the
area that the revitalization plan of the applicant is
to be carried out, directly affect the ability of the
applicant or grantee to comply with such requirement.
``(B) Regulations.--The Secretary shall issue
regulations to carry out this paragraph, which shall--
``(i) set forth such circumstances of extreme
distress and emergency; and
``(ii) provide that such circumstances shall
include any instance in which the area in which
a revitalization plan assisted with amounts
from a grant under this section is to be
carried out is subject to a declaration by the
President of a major disaster or emergency
under the Robert T. Stafford Disaster Relief
and Emergency Assistance Act.''.
SEC. 4. PROHIBITION OF DEMOLITION-ONLY GRANTS.
Section 24 is amended--
(1) in subsection (c)(3), by striking ``or demolition of
public housing (without replacement)'';
(2) in the first sentence of subsection (e)(3)--
(A) by striking ``demolition only,''; and
(B) by striking the last comma; and
(3) in subsection (e), by adding at the end the following new
paragraph:
``(4) Prohibition of demolition-only grants.--The Secretary
may not make a grant under this section for a revitalization
plan that proposes to demolish public housing without
revitalization of any existing public housing dwelling
units.''.
SEC. 5. REPEAL OF MAIN STREET PROJECTS GRANT AUTHORITY.
Section 24 is amended--
(1) by striking subsection (n) (relating to grants for
assisting affordable housing developed through main street
projects in smaller communities);
(2) in subsection (a), by striking the last sentence (that
appears after and below paragraph (5), as added by section 2(4)
of this Act);
(3) in subsection (l)--
(A) in paragraph (3), by striking ``, including a
specification of the amount and type of assistance
provided under subsection (n);'' and inserting ``;
and''; and
(B) by striking paragraph (4); and
(4) in subsection (m), by striking paragraph (3).
SEC. 6. ELIGIBLE ACTIVITIES.
Paragraph (1) of section 24(d) is amended--
(1) in the matter preceding subparagraph (A), by striking
``programs'' and inserting ``plans'';
(2) in subparagraph (G), by striking ``program'' and
inserting ``plan'';
(3) by striking subparagraph (J) and inserting the following
new subparagraph:
``(J) the acquisition and development of replacement
housing units in accordance with subsection (j);''.
(4) in subparagraph (K), by striking ``and'' at the end;
(5) in subparagraph (L)--
(A) by striking ``15 percent'' and inserting ``25
percent''; and
(B) by striking the period at the end and inserting a
semicolon; and
(6) by adding at the end the following new subparagraphs:
``(M) necessary costs of ensuring the effective
relocation of residents displaced as a result of the
revitalization of the project, including costs of
monitoring as required under subsection (k); and
``(N) activities undertaken to comply with the
provisions of (B)(vii) and (C)(xiii) of subsection
(e)(2) and subsection (l) (relating to green
developments).''.
SEC. 7. SELECTION OF PROPOSALS FOR GRANTS.
(a) Selection Criteria.--Section 24(e) is amended by striking
paragraph (2) and inserting the following new paragraph:
``(2) Grant award criteria.--
``(A) Establishment.--The Secretary shall establish
criteria for the award of grants under this section.
``(B) Mandatory core components.--The criteria under
this paragraph shall require that a proposed
revitalization plan may not be selected for award of a
grant under this section unless the proposed plan meets
all of the following requirements:
``(i) Evidence of severe distress.--The
proposed plan shall contain evidence sufficient
to demonstrate that the public housing project
that is subject to the plan is severely
distressed, which shall include--
``(I) a certification signed by an
engineer or architect licensed by a
State licensing board that the project
meets the criteria for physical
distress under subsection (t)(2); and
``(II) such other evidence that the
project meets criteria for nonphysical
distress under subsection (t)(2), such
as census data, crime statistics, and
past surveys of neighborhood stability
conducted by the public housing agency.
``(ii) Resident involvement and services.--
The proposed plan shall provide for
opportunities for involvement of residents of
the housing subject to the plan and the
provision of services for such residents, in
accordance with subsection (g).
``(iii) Relocation plan.--The proposed plan
shall provide a plan for relocation of
households occupying the public housing project
that is subject to the plan, in accordance with
subsection (h), including a statement of the
estimated number of vouchers for rental
assistance under section 8 that will be needed
for such relocation.
``(iv) Resident right to expanded housing
opportunities.--The proposed plan provides
right of resident households to occupy housing
provided under such revitalization plan in
accordance with subsection (i).
``(v) One-for-one replacement.--The proposed
plan shall provide a plan that--
``(I) provides for replacement in
accordance with subsection (j) of 100
percent of all dwelling units
demolished or disposed of under such
revitalization plan, as of the date of
the application for the grant, on the
site of the original public housing or
within the jurisdiction of the public
housing agency;
``(II) identifies the type of
replacement housing that will be
offered to tenants displaced by the
revitalization plan;
``(III) contains such agreements with
or assurances by the Secretary, State
and local governmental agencies, and
other entities sufficient to ensure
compliance with subsection (j) and the
requirements of section 18 applicable
pursuant to subsection (p)(1); and
``(IV) contains such assurances or
agreements as the Secretary considers
necessary to ensure compliance with
subsection (i)(2).
``(vi) Fair housing; limitation on
exclusion.--The proposed plan shall be carried
out in a manner that complies with section (m)
(relating to affirmatively furthering fair
housing and limitation on exclusion).
``(vii) Green developments.--The proposed
plan complies with the requirement under
subsection (l) (relating to green
developments).
``(C) Mandatory graded components.--The criteria
under this paragraph shall provide that, in addition to
the requirements under subparagraph (B), the proposed
revitalization plan shall address and meet minimum
requirements with respect to, and shall provide
additional priority based on the extent to which the
plan satisfactorily addresses, each of the following
issues:
``(i) Compliance with purposes.--The extent
to which the proposed plan of an applicant
achieves the purposes of this section set forth
in subsection (a).
``(ii) Capability and record.--The extent of
the capability and record of the applicant
public housing agency, public partners,
proposed private development partners, or any
alternative management entity for the agency,
for managing redevelopment or modernization
projects, meeting performance benchmarks, and
obligating amounts in a timely manner,
including any past performance of such entities
under the HOPE VI program and any record of
such entities of working with socially and
economically disadvantaged businesses, as such
term is defined in section 8(a)(4) of the Small
Business Act (15 U.S.C. 637(a)(4)).
``(iii) Diversity outreach.--The extent to
which the proposed revitalization plan includes
partnerships with socially and economically
disadvantaged businesses, as such term is
defined by section 8(a)(4) of the Small
Business Act.
``(iv) Effectiveness of relocation and one-
for-one replacement plans.--The extent of the
likely effectiveness of the proposed
revitalization plan for temporary and permanent
relocation of existing residents, including the
likely effectiveness of the relocation plan
under subparagraph (B)(iii) and the one-for-one
replacement plan under subparagraph (B)(v).
``(v) Achievability of revitalization plan.--
The achievability of the proposed
revitalization plan pursuant to subsection (o),
with respect to the scope and scale of the
project.
``(vi) Leveraging.--The extent to which the
proposed revitalization plan will leverage
other public or private funds or assets for the
project.
``(vii) Need for additional funding.--The
extent to which the applicant could undertake
the activities proposed in the revitalization
plan without a grant under this section.
``(viii) Public and private involvement.--The
extent of involvement of State and local
governments, private service providers,
financing entities, and developers, in the
development and ongoing implementation of the
revitalization plan.
``(ix) Need for affordable housing.--The
extent of need for affordable housing in the
community in which the proposed revitalization
plan is to be carried out.
``(x) Affordable housing supply.--The extent
of the supply of other housing available and
affordable to families receiving tenant-based
assistance under section 8.
``(xi) Project-based housing.--The extent to
which the proposed revitalization plan sustains
or creates more project-based housing units
available to persons eligible for residency in
public housing in markets where the proposed
plan shows there is demand for the maintenance
or creation of such units.
``(xii) Green developments compliance.--The
extent to which the proposed revitalization
plan--
``(I) in the case of residential
construction, complies with the
nonmandatory items of the national
Green Communities criteria checklist
identified in subsection (l)(1)(A), or
any substantially equivalent standard
as determined by the Secretary, but
only to the extent such compliance
exceeds the compliance necessary to
accumulate the number of points
required under such subsection; and
``(II) in the case of non-residential
construction, includes non-mandatory
components of version 2.2 of the
Leadership in Energy and Environmental
Design (LEED) green building rating
system for New Construction and Major
Renovations, version 2.0 of the LEED
for Core and Shell rating system, or
version 2.0 of the LEED for Commercial
Interiors rating system, as applicable,
or any substantially equivalent
standard as determined by the
Secretary, but only to the extent such
inclusion exceeds the inclusion
necessary to accumulate the number of
points required under such system.
``(xiii) Hard-to-house families.--The extent
to which the one-for-one replacement plan under
subparagraph (B)(v) for the revitalization plan
provides replacement housing that is likely to
be most appropriate and beneficial for families
whose housing needs are difficult to fulfill,
including individuals who are not ineligible
for occupancy in public housing pursuant to
subsection (m)(2), have been released from a
State or Federal correctional facility, have
not been arrested for or charged with any crime
during the period beginning upon probation or
parole and ending one year after completion of
probation or parole, and for whom affordable
housing is a critical need.
``(xiv) Family-friendly housing.--The extent
to which replacement housing units provided
through the revitalization plan contain a
sufficient number of bedrooms to prevent
overcrowding.
``(xv) Additional on-site mixed-income
housing.--The extent to which the one-for-one
replacement plan under subparagraph (B)(v)
provides public housing units in addition to
the number necessary to minimally comply with
the requirement under subsection (j)(2)(A)(i),
including the extent to which such plan
provides sufficient housing for elderly and
disabled residents who indicate a preference to
return to housing provided on the site of the
original public housing involved in the
revitalization plan and complies with the
requirements of subsection (j)(2)(A)(ii).
``(xvi) Other.--Such other factors as the
Secretary considers appropriate.''.
(b) Treatment of Low-Income Housing Tax Credit Allocations; Mandatory
Site Visits.--Section 24(e), as amended by the preceding provisions of
this Act, is further amended by adding at the end the following new
paragraphs:
``(5) Treatment of low-income housing tax credit
allocation.--In the case of any application for a grant under
this section that relies on the allocation of any low-income
housing tax credit provided pursuant to section 42 of the
Internal Revenue Code of 1986 as part of the revitalization
plan proposed in the application, the Secretary shall not
require that the first phase of any project to be developed
under the plan possess an allocation of such low-income housing
tax credits at the time of such application.
``(6) Mandatory site visits.--Notwithstanding any other
provision of law, the Secretary shall provide for appropriate
officers or employees of the Department of Housing and Urban
Development to conduct a visit to the site of the public
housing involved in the revitalization plan proposed under each
application for a grant under this section that is involved in
a final selection of applications to be funded under this
section. Site visits pursuant to this paragraph shall be used
only for the purpose of obtaining information to assist in
determining whether the public housing projects involved in the
application are severely distressed public housing.''.
SEC. 8. REQUIREMENTS FOR MANDATORY CORE COMPONENTS.
Section 24 is amended--
(1) by redesignating subsections (h) through (m) as
subsections (q) through (v), respectively;
(2) by redesignating subsection (o) as subsection (w); and
(3) by striking subsection (g) and inserting the following
new subsections:
``(g) Resident Involvement and Services.--
``(1) In general.--Each revitalization plan assisted under
this section shall provide opportunities for the active
involvement and participation of, and consultation with,
residents of the public housing that is subject to the
revitalization plan during the planning process for the
revitalization plan, including prior to submission of the
application, and during all phases of the planning and
implementation. Such opportunities for participation may
include participation of members of any resident council, but
may not be limited to such members, and shall include all
segments of the population of residents of the public housing
that is subject to the revitalization plan, including single
parent-headed households, the elderly, young employed and
unemployed adults, teenage youth, and disabled persons. Such
opportunities shall include a process that provides opportunity
for comment on specific proposals for redevelopment, any
demolition and disposition involved, and any proposed
significant amendments or changes to the revitalization plan.
``(2) Notices.--In carrying out a revitalization plan
assisted under this section, a public housing agency shall
provide the following written notices, in plain and
nontechnical language, to each household occupying a dwelling
unit in the public housing that is subject to, or to be subject
to, the plan:
``(A) Notice of intent.--Not later than the
expiration of the 30-day period beginning upon
publication by the Secretary of a notice of funding
availability for a grant under this section for such
plan, notice of--
``(i) the public housing agency's intent to
submit such application;
``(ii) the proposed implementation and
management of the revitalized site;
``(iii) residents' rights under this section
to participate in the planning process for the
plan, including opportunities for participation
in accordance with paragraph (1), and to
receive comprehensive relocation assistance and
community and supportive services pursuant to
paragraph (4); and
``(iv) the public hearing pursuant to
paragraph (3).
``(B) Notice of grant award and relocation options.--
Not later than 30 days after notice to the public
housing agency of the award of a grant under this
section, notice that--
``(i) such grant has been awarded;
``(ii) describes the process involved under
the revitalization plan to temporarily relocate
residents of the public housing that is subject
to the plan;
``(iii) provides the information required
pursuant to subsection (h)(2) (relating to
relocation options); and
``(iv) informs residents of opportunities for
participation in accordance with paragraph (1).
``(C) Notice of grant agreement and relocation
options.--Not later than 30 days after execution of a
grant agreement under this section with a public
housing agency, notice that--
``(i) specifically identifies the housing
available for relocation of resident of the
public housing subject to the revitalization
plan;
``(ii) sets forth the schedule for relocation
of residents of the public housing subject to
the revitalization plan, including the dates on
which such housing will be available for such
relocation; and
``(iii) informs residents of opportunities
for participation in accordance with paragraph
(1).
``(D) Notice of replacement housing.--Upon the
availability of replacement housing provided pursuant
to subsection (j), notice to each household described
in subsection (i)(1) of--
``(i) such availability;
``(ii) the process and procedure for
exercising the right to expanded housing
opportunities and preferences under subsection
(i)(2); and
``(iii) opportunities for participation in
accordance with paragraph (1) of this
subsection.
``(E) Other.--Such other notices as the Secretary may
require.
``(3) Public hearing.--The Secretary may not make a grant
under this section to an applicant unless the applicant has
convened and conducted a public hearing regarding the
revitalization plan, including the one-for-one replacement to
occur under the plan, not later than 75 days before submission
of the application for the grant under this section for such
plan, at a time and location that is convenient for residents
of the public housing subject to the plan.
``(4) Services.--Each recipient of a grant under this section
shall--
``(A) provide each household who is residing at the
site of the revitalization as of the date of the notice
of intent under subparagraph (A) with comprehensive
relocation assistance for a period that is the latter
of the two periods referred to in subparagraph (B) with
comprehensive relocation assistance; and
``(B) offer, to each such displaced resident and each
low-income family provided housing under the
revitalization plan, community and supportive services
until the latter of--
``(i) the expiration of the two-year period
that begins upon the end of the development
period under the plan; and
``(ii) the date on which all funding under
the grant for community and supportive services
has been expended.
``(h) Relocation Program.--Each recipient of a grant under this
section shall--
``(1) provide for each household displaced by the
revitalization plan for which the grant is made to be relocated
to a comparable replacement dwelling, as defined in section 101
of the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970 (42 U.S.C. 4601), and for
payment of actual and reasonable relocation expenses of each
such household and any replacement housing payments as are
required by the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970;
``(2) fully inform such households of all relocation options,
which may include relocating to housing in a neighborhood with
a lower concentration of poverty than their current residence
or remaining in the housing to which they relocate;
``(3) to the maximum extent possible, minimize academic
disruptions on affected children enrolled in school by
coordinating relocation with school calendars;
``(4) establish strategies and plans that assist such
displaced residents in utilizing tenant-based vouchers to
select housing opportunities, including in communities with a
lower concentration of poverty, that--
``(A) will not result in a financial burden to the
family; and
``(B) will promote long-term housing stability;
``(5) establish and comply with relocation benchmarks that
ensure successful relocation in terms of timeliness; and
``(6) notwithstanding any other provision of law, in the case
of any tenant-based assistance made available for relocation of
a household under this subsection, provide that the term during
which the household may lease a dwelling unit using such
assistance shall not be shorter than 150 days; if the household
is unable to lease a dwelling unit during such period, the
public housing agency shall either extend the period during
which the household may lease a dwelling unit using such
assistance or provide the tenant with the next available
dwelling unit owned by the public housing agency.
``(i) Right to Expanded Housing Opportunities for Resident
Households.--
``(1) In general.--Subject only to paragraph (3), each
revitalization plan assisted with a grant under this section
shall make available, to each household occupying a dwelling
unit in the public housing subject to a revitalization plan
that is displaced as a result of the revitalization plan
(including any demolition or disposition of the unit),
occupancy for such household in a replacement dwelling unit
provided pursuant to subsection (j). To exercise such right
under this paragraph to occupancy in such a replacement
dwelling unit, the household shall respond in writing to the
notice provided pursuant to subsection (g)(2)(C) by the public
housing agency.
``(2) Preferences.--Such a replacement dwelling unit shall be
made available to each household displaced as a result of the
revitalization plan before any replacement dwelling unit is
made available to any other eligible household.
``(3) Reports to secretary.--The Secretary shall require each
public housing agency carrying out a revitalization plan
assisted under this section to submit to the Secretary such
reports as may be necessary to allow the Secretary to determine
the extent to which the public housing agency has complied with
this subsection and to which displaced residents occupy
replacement housing provided pursuant to subsection (j), which
shall include information describing the location of
replacement housing provided pursuant to subsection (j) and
statistical information on the characteristics of all
households occupying such replacement housing.
``(j) One-for-One Replacement.--Each revitalization plan assisted
with a grant under this section under which any public housing dwelling
unit is demolished or disposed of shall provide as follows:
``(1) Number.--For one hundred percent of all such dwelling
units in existence as of the date of the application for the
grant that are demolished or disposed under the revitalization
plan, the public housing agency carrying out the plan shall
provide an additional dwelling unit.
``(2) Location.--Such dwelling units shall be provided in the
following manner:
``(A) On-site mixed-income housing.--
``(i) One-third requirement.--A mixed-income
housing development shall be provided on the
site of the original public housing involved in
the revitalization plan in which, except as
provided in clause (iii), at least one-third of
all dwelling units shall be public housing
dwelling units and shall be provided through
the development of additional public housing
dwelling units.
``(ii) Requirements for additional on-site
units.--If the mixed-income housing development
provided pursuant to clause (i) includes more
public housing dwelling units at the site of
the original public housing than is minimally
necessary to comply with such clause, the
public housing agency shall consult with
residents, community leaders, and local
government officials regarding such additional
public housing dwelling units and shall ensure
that such units are provided in a manner that
affirmatively furthers fair housing.
``(iii) Exception.--If, upon a showing by a
public housing agency, the Secretary determines
that it is infeasible to locate replacement
dwelling units on the site of the original
public housing involved in the revitalization
plan in accordance with clause (i), all
replacement units shall be located in areas
within the jurisdiction of the public housing
agency having low concentrations of poverty,
except that at least one mixed-income housing
development shall be provided in such an area
within the jurisdiction of the public housing
agency and that one-third of all units in such
development shall be public housing dwelling
units. The Secretary may make a finding of
infeasibility under this clause only if--
``(I) such location on-site would
result in the violation of a consent
decree; or
``(II) the land on which the public
housing is located is environmentally
unsafe, geologically unstable, or
otherwise unsuitable for the
construction of housing, as evidenced
by an independent environmental review
or assessment.
``(iv) Deconcentration of poverty.--All
dwelling units provided pursuant to this
subparagraph shall be provided in a manner that
results in decreased concentrations of poverty,
with respect to such concentrations existing on
the date of the application for the grant under
this section.
``(B) Off-site mixed-income housing.--Any other
replacement housing units provided in addition to the
dwelling units provided pursuant to subparagraph (A)
shall be provided, in areas within the jurisdiction of
the public housing agency having low concentrations of
poverty, through--
``(i) the acquisition or development of
additional public housing dwelling units; or
``(ii) the acquisition, development, or
contracting (including through project-based
assistance) of additional dwelling units that
are subject to requirements regarding
eligibility for occupancy, tenant contribution
toward rent, and long-term affordability
restrictions which are comparable to public
housing units, except that subparagraphs (B)
and (D) of section 8(o)(13) of the United
States Housing Act of 1937 (42 U.S.C.
1437f(o)(13); relating to percentage limitation
and income-mixing requirement for project-based
assistance) shall not apply with respect to
vouchers used to comply with the requirements
of this clause.
``(3) Timing.--All replacement dwelling units provided
pursuant to this subsection shall be provided not later than
the expiration of the 12-month period beginning upon the
demolition or disposition of the public housing dwelling units,
except that replacement dwelling units financed with a low-
income housing tax credit under section 42 of the Internal
Revenue Code of 1986 in connection with the revitalization plan
shall be provided not later than the expiration of the 12-month
period beginning upon the allocation of such low-income housing
tax credit. To the greatest extent practicable, such
replacement or additional dwelling units, or redevelopment,
shall be accomplished in phases over time and, in each such
phase, the public housing dwelling units and the dwelling units
described in subparagraph (B)(ii) of paragraph (2) shall be
made available for occupancy before any nonassisted dwelling
unit is made available for occupancy.
``(4) Fair housing.--The demolition or disposition,
relocation, and provision of replacement housing units under
paragraph (2)(B) shall be carried out in a manner that
affirmatively furthers fair housing, as described in subsection
(e) of section 808 of the Civil Rights Act of 1968 (42 U.S.C.
3608(e)).
``(k) Monitoring of Displaced Households.--
``(1) PHA responsibilities.--To facilitate compliance with
the requirement under subsection (i) (relating to right to
expanded housing opportunities), the Secretary shall, by
regulation, require each public housing agency that receives a
grant under this section, during the period of the
revitalization plan assisted with the grant and until all
funding under the grant has been expended--
``(A) to maintain a current address of residence and
contact information for each household affected by the
revitalization plan who was occupying a dwelling unit
in the housing that is subject to the plan; and
``(B) to provide such updated information to the
Secretary on at least a quarterly basis.
``(2) Certification.--The Secretary may not close out any
grant made under this section to a public housing agency before
the agency has certified to the Secretary that the agency has
complied with subsection (i) (relating to a right to expanded
housing opportunities for resident households) with respect to
each resident displaced as a result of the revitalization plan,
including providing occupancy in a replacement dwelling unit
for each household who requested such a unit in accordance with
such subsection.
``(3) Reports by secretary.--Not less frequently than once
every six months, the Secretary shall submit a report to the
Congress that includes all information submitted to the
Secretary pursuant to paragraph (1) by all public housing
agencies and summarizes the extent of compliance by public
housing agencies with the requirements under this subsection
and subsection (i).
``(l) Green Developments Requirement.--
``(1) Requirement.--The Secretary may not make a grant under
this section to an applicant unless the proposed revitalization
plan of the applicant to be carried out with such grant amounts
meets the following requirements, as applicable:
``(A) Green communities criteria checklist.--All
residential construction under the proposed plan
complies with the national Green Communities criteria
checklist for residential construction that provides
criteria for the design, development, and operation of
affordable housing, as such checklist is in effect for
purposes of this subsection pursuant to paragraph (3)
at the date of the application for the grant, or any
substantially equivalent standard as determined by the
Secretary, as follows:
``(i) The proposed plan shall comply with all
items of the national Green Communities
criteria checklist for residential construction
that are identified as mandatory.
``(ii) The proposed plan shall comply with
such other nonmandatory items of such national
Green Communities criteria checklist so as to
result in a cumulative number of points
attributable to such nonmandatory items under
such checklist of not less than--
``(I) 25 points, in the case of any
proposed plan (or portion thereof)
consisting of new construction; and
``(II) 20 points, in the case of any
proposed plan (or portion thereof)
consisting of rehabilitation.
``(B) LEED ratings system.--All non-residential
construction under the proposed plan complies with
version 2.2 of the LEED for New Construction rating
system, version 2.0 of the LEED for Core and Shell
rating system, version 2.0 of the LEED for Commercial
Interiors rating system, as such systems are in effect
for purposes of this subsection pursuant to paragraph
(3) at the time of the application for the grant, at
least to the minimum extent necessary to be certified
to the Silver Level under such system, or any
substantially equivalent standard as determined by the
Secretary.
``(2) Verification.--
``(A) In general.--The Secretary shall verify, or
provide for verification, sufficient to ensure that
each proposed revitalization plan carried out with
amounts from a grant under this section complies with
the requirements under paragraph (1) and that the
revitalization plan is carried out in accordance with
such requirements and plan.
``(B) Timing.--In providing for such verification,
the Secretary shall establish procedures to ensure such
compliance with respect to each grantee, and shall
report to the Congress with respect to the compliance
of each grantee, at each of the following times:
``(i) Not later than 60 days after execution
of the grant agreement under this section for
the grantee.
``(ii) Upon completion of the revitalization
plan of the grantee.
``(3) Applicability and updating of standards.--
``(A) Applicability.--Except as provided in
subparagraph (B), the national Green Communities
criteria checklist and LEED rating systems referred to
in subparagraphs (A) and (B) that are in effect for
purposes of this subsection are such checklist and
systems as in existence upon the date of the enactment
of the HOPE VI Improvement and Reauthorization Act of
2007.
``(B) Updating.--The Secretary may, by regulation,
adopt and apply, for purposes of this section, future
amendments and supplements to, and editions of, the
national Green Communities criteria checklist, the LEED
rating systems, and any standard that the Secretary has
determined to be substantially equivalent to such
checklist or systems.
``(m) Fair Housing; Limitation on Exclusion.--
``(1) Fair housing.--Each revitalization plan assisted under
this section shall affirmatively further fair housing, as
described in subsection (e) of section 808 of the Civil Rights
Act of 1968.
``(2) Limitation on exclusion.--Except to the extent
necessary to comply with the requirements of this section,
replacement housing provided pursuant to subsection (j) under a
revitalization plan of a public housing agency that is owned or
managed, or assisted, by the agency shall be subject to the
same policies, practices, standards, and criteria regarding
waiting lists, tenant screening (including screening criteria,
such as credit checks), and occupancy that apply to other
housing owned or managed, or assisted, respectively, by such
agency. A household may not be prevented from occupying a
replacement dwelling unit provided pursuant to subsection (j),
or from being provided a tenant-based voucher under the
revitalization plan, except to the extent specifically provided
by any other provision of Federal law (including subtitle F of
title V of the Quality Housing and Work Responsibility Act of
1998 (42 U.S.C. 13661 et seq.; relating to safety and security
in public and assisted housing and ineligibility of drug
criminals, illegal drug users, alcohol abusers, and dangerous
sex offenders), subtitle D of title VI of the Housing and
Community Development Act of 1992), (42 U.S.C. 13611 et seq.;
relating to preferences for elderly and disabled residents),
and section 16(f) of the United States Housing Act of 1937 (42
U.S.C. 1437n(f); relating to ineligibility of persons convicted
of methamphetamine offenses)).
``(n) Enforcement.--
``(1) Administrative enforcement.--If the Secretary
determines on the record after opportunity for an agency
hearing, pursuant to a request made by any member of household
described in subsection (i)(1) who is adversely affected or
aggrieved by a violation of subsection (g), (h), (i), (j), (k),
(m), or (o), that such a violation has occurred, the Secretary
shall issue an order requiring the public housing agency
committing such violation to cease and desist for such
violation and to take any affirmative action necessary to
correct or remedy the conditions resulting from such violation.
``(2) Availability of other remedies.--The remedy under
paragraph (1) shall be in addition to all other rights and
remedies provided by law.
``(o) Performance Benchmarks.--
``(1) In general.--Each public housing agency that receives a
grant under this section shall, in consultation with the
Secretary and residents of the public housing subject to the
revitalization plan for which the grant is made that are
displaced as a result of the revitalization plan, establish
performance benchmarks for each component of their
revitalization plan.
``(2) Failure to meet benchmarks.--If a public housing agency
fails to meet the performance benchmarks established pursuant
to paragraph (1), the Secretary shall impose appropriate
sanctions, including--
``(A) appointment of an alternative administrator for
the revitalization plan;
``(B) financial penalties;
``(C) withdrawal of funding under subsection (j); or
``(D) such other sanctions as the Secretary may deem
necessary.
``(3) Extension of benchmarks.--The Secretary shall extend
the period for compliance with performance benchmarks under
paragraph (1) for a public housing agency, for such period as
the Secretary determines to be necessary, if the failure of the
agency to meet such benchmarks is attributable to--
``(A) litigation;
``(B) obtaining approvals of the Federal Government
or a State or local government;
``(C) complying with environmental assessment and
abatement requirements;
``(D) relocating residents;
``(E) resident involvement that leads to significant
changes to the revitalization plan; or
``(F) any other reason established by the Secretary
by notice published in the Federal Register.
``(4) Authority of secretary.--In determining the amount of
each grant under this section and the closeout date for the
grant, the Secretary shall take into consideration the scope,
scale, and size of the revitalization plan assisted under the
grant.
``(p) Applicability of Other Laws.--
``(1) Section 18.--Any severely distressed public housing
demolished or disposed of pursuant to a revitalization plan and
any public housing developed in lieu of such severely
distressed housing shall be subject to the provisions of
section 18. To the extent the provisions of section 18 conflict
with or are duplicative of the provisions of this section, the
provisions of this section solely shall apply.
``(2) URA.--The Uniform Relocation and Real Property
Acquisition Policies Act of 1974 shall apply to all relocation
activities pursuant to a revitalization plan under this
section.''.
SEC. 9. PLANNING AND TECHNICAL ASSISTANCE GRANTS.
Subsection (v) of section 24 (42 U.S.C. 1437v(v)), as so redesignated
by section 8(1), is amended by striking paragraph (2) and inserting the
following new paragraph:
``(2) Technical assistance grants.--Subject only to
approvable requests for grants pursuant to paragraph (1) for
any fiscal year, the Secretary shall use not less than two
percent for grants in such fiscal year to recipients of grants
under this section to assist such recipients in obtaining
technical assistance in carrying out revitalization
programs.''.
SEC. 10. ANNUAL REPORT; AVAILABILITY OF DOCUMENTS.
Subsection (u) of section 24, as so redesignated by section 8(1) of
this Act, is amended--
(1) by inserting after paragraph (3) the following new
paragraph:
``(4) the extent to which public housing agencies carrying
out revitalization plans with grants under this section have
complied with the requirements under subsection (i) (relating
to right to expanded housing opportunities for resident
households); and''; and
(2) by adding at the end the following:
``To the extent not inconsistent with any other provisions of law, the
Secretary shall make publicly available through a World Wide Web site
of the Department of Housing and Urban Development all documents of, or
filed with, the Department relating to the program under this section,
including applications, grant agreements, plans, budgets, reports, and
amendments to such documents; except that in carrying out this
sentence, the Secretary shall take such actions as may be necessary to
protect the privacy of any residents and households displaced from
public housing as a result of a revitalization plan assisted under this
section.''.
SEC. 11. DEFINITIONS.
Subsection (s) of section 24, as so redesignated by section 8(l) of
this Act, is amended--
(1) in clauses (i) and (iii) of paragraph (1)(C), by striking
``program'' each place such term appears and inserting
``plan'';
(2) in paragraph (3)--
(A) by striking ``Supportive'' and inserting
``Community and supportive'';
(B) by inserting ``community and'' before
``supportive services'';
(C) by inserting before the period at the end the
following: ``, and such other services that, linked
with affordable housing, will improve the health and
residential stability of public housing residents'';
and
(D) by inserting after ``transportation,'' the
following: ``employment and vocational counseling,
financial counseling, life skills training,'';
(3) by redesignating paragraph (3) as paragraph (6);
(4) by inserting after paragraph (2), the following new
paragraph:
``(5) Significant amendment or change.--The term
`significant' means, with respect to an amendment or change to
a revitalization plan, that the amendment or change--
``(A) changes the use of 10 percent or more of the
funds provided under the grant made under this section
for the plan from use for one activity to use for
another;
``(B) eliminates an activity that, notwithstanding
the change, would otherwise be carried out under the
plan; or
``(C) changes the scope, location, or beneficiaries
of the project carried out under the plan.'';
(5) by redesignating paragraph (2) as paragraph (4); and
(6) by inserting after paragraph (1) the following new
paragraphs:
``(2) Comprehensive relocation assistance.--The term
`comprehensive relocation assistance' means comprehensive
assistance necessary to relocate the members of a household,
and includes counseling, including counseling regarding housing
options and locations and use of tenant-based assistance, case
management services, assistance in locating a suitable
residence, site tours, and other assistance.
``(3) Development.--The term `development' has the same
meaning given such term in the first sentence of paragraph (1)
of section 3(c) (42 U.S.C. 1437a).''.
SEC. 12. CONFORMING AMENDMENT.
Paragraph (1) of section 24(f) is amended by striking ``programs''
and inserting ``plans''.
SEC. 13. AUTHORIZATION OF APPROPRIATIONS.
Subsection (v)(1) of section 24, as so redesignated by section 8(1)
of this Act, is amended by striking all that follows ``section'' and
inserting ``$800,000,000 for each of fiscal years 2008 through 2015.''.
SEC. 14. EXTENSION OF PROGRAM.
Subsection (w) of section 24, (as so redesignated by section 8(2) of
this Act) is amended by striking ``September 30, 2007'' and inserting
``September 30, 2015''.
SEC. 15. REVIEW.
The Comptroller General of the United States shall--
(1) conduct a review of activities, actions, and methods used
in revitalization plans assisted under section 24 of the United
States Housing Act of 1937 to determine which may be
transferable to other federally-assisted housing programs; and
(2) make recommendations to the Congress regarding the
activities, actions, and methods reviewed under paragraph (1)
not later than the expiration of the 3-year period beginning on
the date of the enactment of this Act.
SEC. 16. REGULATIONS.
Section 24, as amended by the preceding provisions of this Act, is
further amended by adding at the end the following new subsection:
``(x) Regulations.--Not later than the expiration of the 120-day
period beginning on the date of the enactment of the HOPE VI
Improvement and Reauthorization Act of 2007, the Secretary shall issue
regulations to carry out this section, including the amendments made by
such Act.''.
Purpose and Summary
The purpose of H.R. 3524, the ``HOPE VI Improvement and
Revitalization Act of 2007,'' is to re-authorize the HOPE VI
program, which provides assistance to public housing agencies
to improve the living environment for public housing residents
of severely distressed public housing projects. The bill
includes a number of important reforms to the program
including: expanding the number of replacement housing units;
ensuring that residents have access to revitalized sites;
requiring monitoring and tracking of displaced residents; and
greater resident involvement in the planning and re-development
process. The bill also establishes green development standards
for HOPE VI revitalizations activities.
The bill is designed to accomplish these goals while
protecting displaced tenants and ensuring that they are
provided adequate services to obtain suitable replacement
housing on a temporary and permanent basis.
Background and Need for Legislation
In the 1970s, construction on new units of public housing
effectively ended and existing units began to fall into
disrepair and sink further into economic and social isolation
from their surrounding communities. The HUD Reform Act of 1989
authorized the creation of the National Commission on Severely
Distressed Housing (the Commission) to conduct case studies and
site examination of public housing developments that were
believed to be severely distressed. As part of its work, the
Commission was also charged to recommend strategies to Congress
to improve the condition of severely distressed public housing
units. The Commission found that six percent of the nation's
public housing units, or 86,000 units, were severely
distressed. In addition, the Commission noted that residents in
these units were affected by high rates of crime, had high
levels of unemployment, and lacked programs and services to
help them attain self-sufficiency. Furthermore, due to the
deterioration of the units, residents' health and safety were
at risk.
Based on the Commission's report, Congress created the HOPE
VI program in 1992 to revitalize severely distressed public
housing and transform them into safe, livable communities.
Initially started as a demonstration program, HUD selected
grantees for the first 15 cities based on need. This first
group of grantees was awarded up to $50 million per grant, for
a total of $300 million. The program operated through
appropriations acts from Fiscal Year 1994 through Fiscal Year
1998. Because the program was not initially established in
authorizing legislation but through appropriation acts, HUD was
not directed to issue any regulations for the administration of
the program when it was first created. Instead, HUD
administered the program, and continues to administer the
program, through Notices of Funding Availability (NOFAs) that
are published in the Federal Register each year. The NOFAs
outlined the requirements for public housing agencies to apply
for funding.
The program was finally authorized by Congress in 1999
through the Quality Housing and Work Responsibility Act of 1998
(QHWRA) (Public Law 105-276). Under QHWRA, the purposes of the
program were to improve the living environment of public
housing residents, to revitalize the sites on which severely
distressed public housing units were located, to decrease
concentrations of poverty, and to build sustainable
communities. QHWRA also defined ``severely distressed public
housing'' as public housing that requires major design or
rehabilitation; contributes significantly to the decline of the
surrounding neighborhood; is occupied primarily by very low-
income families and the unemployed; has high rates of crime and
vandalism; and cannot be revitalized through other forms of
assistance.
QHWRA authorized the program through Fiscal Year 2002.
Succeeding appropriations acts have extended the authorization.
The Consolidated Appropriations Act for 2003 reauthorized the
program through Fiscal Year 2004. Through the American Dream
Downpayment Act (Public Law 108-186), the program was
reauthorized through Fiscal Year 2006. The most recent
reauthorization was in the Fiscal Year 2007 Continuing
Resolution (H.J. Res. 20), which extended the program through
September 30, 2007.
Through the combination of demolition and revitalization
grants, HOPE VI grantees have demolished 134,572 units of
severely distressed housing, exceeding HUD's initial goal of
demolishing 100,000 units by 2003. Despite these successes, the
program has directly contributed to a loss of hard public
housing units. Because HUD repealed the one-for-one replacement
requirement in 1996, some argue that there has been no
incentive for public housing agencies to replace each unit
taken down with another hard unit. According to HUD, over
30,000 public housing units have been lost as a result of
revitalization grants alone.
The mixed-income communities that have resulted from the
use of these grants have had positive results for many of the
surrounding communities, with reports of increases in per
capita incomes, decreases in unemployment rates, decreases in
the number of households receiving public assistance, and
declines in violent crime. However, some critics of the program
maintain that the majority of the public housing residents have
not benefited from the program because they either do not, or
are not, allowed to return to the new developments.
From 1993 to 1999, grantees estimated that 61 percent of
residents would return to the development. By 2003, the
estimate had fallen to 44 percent. There appear to be a number
of factors leading to why residents have not returned to the
original developments: lack of available units (due to no
requirement for one-for-one replacement); re-screening criteria
that restrict re-occupancy only to residents who meet
employment, creditworthiness, and other criteria; and a desire
on the part of residents to remain in their temporary
replacement housing.
HUD does not require public housing agencies to track
displaced residents. Some public housing agencies are unable to
provide information about what happens to these families after
they have been displaced during the revitalization process. In
Miami, for example, the public housing agency lost track of 612
out of 1,178 residents it had temporarily relocated with
housing choice vouchers when it demolished the Scott/Carver
Homes development in 2001. Low-income housing advocates believe
that as a result of losing their vouchers, many of these
families may now be homeless.
The transition from public housing to private housing (with
vouchers) is difficult for former public housing residents as
illustrated by an Urban Institute study.\1\ The study found
that for more than half of public housing residents renting
housing with a voucher experienced difficulty in paying their
rent and utilities.
---------------------------------------------------------------------------
\1\Susan J. Popkin, The HOPE VI Program--What about the Residents?
(Washington: Urban Institute Press, Dec. 2002).
---------------------------------------------------------------------------
Many public housing developments are racially and
economically isolated from the surrounding community. A review
of 92 census tracts in which projects that were denied HOPE VI
grants are located reveals that the majority, or 62 percent, of
these tracts have predominately minority populations. Within
these tracts, up to 72 percent of the families live in poverty.
Hearings
The Subcommittee on Housing and Community Opportunity held
a hearing on June 21, 2007, on the reauthorization of the HOPE
VI Program. The following witnesses testified:
PANEL ONE
The Honorable Orlando J. Cabrera, Assistant
Secretary for Public and Indian Housing, U.S.
Department of Housing and Urban Development;
PANEL TWO
Mr. Rudy Montiel, Executive Director,
Housing Authority of the City of Los Angeles;
Mr. Charles Woodyard, Executive Director,
Charlotte Housing Authority;
Mr. Richard Fox, Executive Director,
Stamford Housing Authority;
Mr. Michael Kelly, Executive Director,
District of Columbia Housing Authority.
PANEL THREE
Dr. Susan Popkin, Principal Research
Associate, The Urban Institute;
Ms. Yvonne Stratford, former resident Scott/
Carver Homes, Miami, FL;
Mr. George Moses, President, Board of
Directors, National Low Income Housing Coalition,
Housing Alliance of Pennsylvania;
Ms. Doris Koo, President and Chief Executive
Officer, Enterprise Community Partners, Inc.
Committee Consideration
The Committee on Financial Services met in open session on
September 26, 2007, and ordered H.R. 3524, HOPE VI Improvement
and Reauthorization Act of 2007, as amended, reported by a
voice vote.
Committee Votes
Clause 3(b) of rule XIII of the Rules of the House of
Representatives requires the Committee to list the record votes
on the motion to report legislation and amendments thereto. No
record votes were taken with in conjunction with the
consideration of this legislation. A motion by Mr. Frank to
report the bill, as amended, to the House with a favorable
recommendation was agreed to by a voice vote.
During the consideration of the bill, the following
amendments were considered:
An amendment by Ms. Waters, No. 1, a manager's amendment
making various technical and substantive changes, was agreed to
by a voice vote.
An amendment by Mr. Gary G. Miller (CA), No. 2, regarding
inclusion of nonprofit housing developments, was offered and
withdrawn.
An amendment by Mr. Cleaver, No. 3, providing tenant-based
vouchers under a revitalization plan, was agreed to by a voice
vote.
An amendment by Mr. Shays, No. 4, changing the definition
of significant amendment or change, was offered and withdrawn.
An amendment by Mr. Shays, No. 5, dealing with one-for-one
replacement, was not agreed to by a voice vote.
An amendment by Mrs. Capito, No. 6, regarding green
development compliance, was offered and withdrawn.
An amendment by Mr. Hensarling, No. 7, authorizing
appropriations for section 8 rental assistance, was ruled out
of order for being not germane.
Committee Oversight Findings
Pursuant to clause 3(c)(1) of rule XIII of the Rules of the
House of Representatives, the Committee held a hearing and made
findings that are reflected in this report.
Performance Goals and Objectives
Pursuant to clause 3(c)(4) of rule XIII of the Rules of the
House of Representatives, the Committee establishes the
following performance related goals and objectives for this
legislation:
The purpose of H.R. 3524 is to re-authorize the HOPE VI
program, which provides assistance to public housing agencies
to improve the living environment for public housing residents
of severely distressed public housing projects. The bill
includes a number of important reforms to the program
including: expanding the number of replacement housing units;
ensuring that residents have access to revitalized sites;
requiring monitoring and tracking of displaced residents; and
greater resident involvement in the planning and re-development
process. The bill is designed to accomplish these goals while
protecting displaced tenants and ensuring that they are
provided adequate services to obtain suitable replacement
housing on a temporary and permanent basis.
New Budget Authority, Entitlement Authority, and Tax Expenditures
In compliance with clause 3(c)(2) of rule XIII of the Rules
of the House of Representatives, the Committee adopts as its
own the estimate of new budget authority, entitlement
authority, or tax expenditures or revenues contained in the
cost estimate prepared by the Director of the Congressional
Budget Office pursuant to section 402 of the Congressional
Budget Act of 1974.
Committee Cost Estimate
The Committee adopts as its own the cost estimate prepared
by the Director of the Congressional Budget Office pursuant to
section 402 of the Congressional Budget Act of 1974.
Congressional Budget Office Estimate
Pursuant to clause 3(c)(3) of rule XIII of the Rules of the
House of Representatives, the following is the cost estimate
provided by the Congressional Budget Office pursuant to section
402 of the Congressional Budget Act of 1974:
U.S. Congress,
Congressional Budget Office,
Washington, DC, October 11, 2007.
Hon. Barney Frank,
Chairman, Committee on Financial Services,
House of Representatives, Washington, DC.
Dear Mr. Chairman: The Congressional Budget Office has
prepared the enclosed cost estimate for H.R. 3524, the HOPE VI
Improvement and Reauthorization Act of 2007.
If you wish further details on this estimate, we will be
pleased to provide them. The CBO staff contact is Chad Chirico.
Sincerely,
Robert A. Sunshine
(For Peter R. Orszag, Director).
Enclosure.
H.R. 3524--HOPE VI Improvement and Reauthorization Act of 2007
H.R. 3524 would authorize the appropriation of $800 million
for the HOPE VI program for each of fiscal years 2008 through
2015. The HOPE VI program provides grants to housing
authorities to revitalize severely distressed public housing
developments. In 2007, $99 million was appropriated for this
program. Spending on the HOPE VI program has historically been
slow due to the time it takes to award grants and complete
revitalization projects.
The estimated budgetary impact of H.R. 3524 is shown in the
following table. For the purposes of this estimate, we assume
that H.R. 3524 will be enacted near the beginning of fiscal
year 2008, that the authorized amounts will be appropriated for
each year, and that outlays will follow historical patterns.
Assuming appropriation of the authorized amounts, CBO estimates
that implementing this bill would cost $900 million through
2012, with additional amounts spent in later years. Enacting
H.R. 3524 would not affect direct spending or revenues. The
costs of this legislation fall within budget function 600
(income security).
------------------------------------------------------------------------
By fiscal year, in millions of
dollars--
---------------------------------------
2008 2009 2010 2011 2012
------------------------------------------------------------------------
CHANGES IN SPENDING SUBJECT TO APPROPRIATION
Authorization Level............. 800 800 800 800 800
Estimated Outlays............... 8 48 144 280 456
------------------------------------------------------------------------
H.R. 3524 contains no intergovernmental or private-sector
mandates as defined in the Unfunded Mandates Reform Act; any
costs to State, local, or tribal governments would be incurred
voluntarily.
The CBO staff contact for this estimate is Chad Chirico.
This estimate was approved by Keith Fontenot, Deputy Assistant
Director for Health and Human Resources, Budget Analysis
Division.
Federal Mandates Statement
The Committee adopts as its own the estimate of Federal
mandates prepared by the Director of the Congressional Budget
Office pursuant to section 423 of the Unfunded Mandates Reform
Act.
Advisory Committee Statement
No advisory committees within the meaning of section 5(b)
of the Federal Advisory Committee Act were created by this
legislation.
Constitutional Authority Statement
Pursuant to clause 3(d)(1) of rule XIII of the Rules of the
House of Representatives, the Committee finds that the
Constitutional Authority of Congress to enact this legislation
is provided by Article 1, section 8, clause 1 (relating to the
general welfare of the United States) and clause 3 (relating to
the power to regulate interstate commerce).
Applicability to Legislative Branch
The Committee finds that the legislation does not relate to
the terms and conditions of employment or access to public
services or accommodations within the meaning of section
102(b)(3) of the Congressional Accountability Act.
Earmark Identification
H.R. 3524 does not contain any congressional earmarks,
limited tax benefits, or limited tariff benefits as defined in
clause 9 of rule XXI.
Section-by-Section Analysis of the Legislation
Section 1. Short title
This section establishes the short title of the bill, the
``HOPE VI Improvement and Reauthorization Act of 2007.''
Section 2. Purposes of program
Expands upon the current purposes of the program by
clarifying that communities of all sizes can benefit from HOPE
VI and by adding the promotion of housing choice among low- and
very-low income families as a purpose of the program.
Section 3. Authority to waive contribution requirement in cases of
extreme distress or emergency
Allows the Secretary to waive the 5 percent matching
requirement for public housing agencies that experience extreme
distress or emergencies. Gives the Secretary discretion to
define the circumstances of an emergency, provided that these
circumstances include disasters declared by the President or
emergencies under the Robert T. Stafford Disaster Relief and
Emergency Assistance Act.
Section 4. Prohibition of demolition only grants
Prohibits the demolition of public housing units without
replacement of those units through revitalization.
Section 5. Repeal of Main Street Projects Grant Authority
Eliminates the Main Street Grant program.
Section 6. Eligible activities
Expands upon which activities constitute a permissible use
of grant funds to include costs associated with green
developments, costs associated with the temporary and permanent
relocation of residents, costs associated with the monitoring
and tracking of displaced residents, and costs associated with
the acquisition and development of public housing dwelling
units to meet the one-for-one replacement requirement. Permits
up to 25 percent of grant funds to be used for community and
supportive services (CSS).
Section 7. Selection of proposals for grants
Establishes selection criteria for HOPE VI grants. Provides
minimum standards for grant consideration including physical
and non-physical indicators of severe distress; opportunities
for resident involvement and services to facilitate such
involvement; a plan for the temporary relocation of households
occupying the public housing project to be revitalized;
expanded housing opportunities to relocated residents; one-for-
one replacement of all demolished or disposed units; and green
building standards.
Requires applications to minimally meet the following
standards and provides additional consideration to the extent
that applications comply with the purposes of the HOPE VI
program; have a demonstrated record and capability of managing
modernization projects in a timely manner; work with socially
and economically disadvantaged businesses; contain an effective
plan for relocation and one-for-one replacement; include an
achievable and realistic revitalization plan; leverage public
and private funds; involve state and local governments, private
service providers, financing entities, and developers in the
development and ongoing implementation of the revitalization
plan; cannot be accomplished without a HOPE VI grant; address a
need for affordable housing in the community; relate to the
supply of affordable housing in the community; sustain or
create more project-based housing units eligible for public
housing eligible families; comply with residential and non-
residential green building standards; provide replacement
housing for families whose housing needs are difficult to
fulfill, including eligible ex-offenders who have been crime-
free for one year after completion of probation or parole and
for whom housing is a critical need; provide replacement
housing that contains a sufficient number of bedrooms to
prevent overcrowding; provide on-site public housing units in
excess of the one-third requirement, including housing for
elderly and disabled residents who want to return to the public
housing development; and address other factors as the Secretary
considers appropriate.
Allows the Secretary to consider grant applications that
have not received an allocation of low-income tax credits at
the time of application. Requires the Secretary to conduct site
visits for grant finalists for the purpose of determining if
the proposed public housing project is severely distressed.
Section 8. Requirements for mandatory core components
Establishes the following requirements for HOPE VI grants:
Resident Involvement and Services: Requires the active
involvement and participation of residents in the planning
process and requires public housing agencies to inform
residents about all stages of the grant and application process
through four written notices to residents on the public housing
agency's intent to submit a HOPE VI application, award of a
HOPE VI grant, completion of a grant agreement, and
availability of replacement housing. Requires public housing
agencies to hold a public hearing not later than 75 days before
submission of the grant application. Requires public housing
agencies to offer displaced residents comprehensive relocation
assistance and community and supportive services until grant
funding has been expended or two years after the end of the
development period, whichever is longer.
Relocation Program: Requires public housing agencies to
provide for the successful and timely relocation of each
displaced resident, including payment of actual and reasonable
relocation expenses; provide information about relocation
options, including the right to remain in the housing to which
they relocate; minimize academic disruptions resulting from
moves on children and coordinate resident relocation with
school calendars; and provide assistance to residents with
using a tenant-based voucher--including in communities with a
lower concentration of poverty--in a manner that will not
result in a financial burden and will promote long-term housing
stability. In the event families are unable to lease up their
voucher within 150 days, requires the public housing agency to
either extend their search time or provide them with the next
available unit assisted by the agency.
Right to Expanded Housing Opportunities: Requires public
housing agencies to make available to each displaced household
a newly revitalized public housing unit, either on the original
site, if available, or in the jurisdiction of the public
housing agency. HOPE VI housing must be made available to
displaced households prior to being offered to other eligible
households.
One-for-One Replacement--On-Site Housing: Requires public
housing agencies to replace all units that are demolished or
disposed of through the HOPE VI grant. Requires at least 33
percent of units comprising the revitalized development built
on site to be public housing units. Allows public housing
agencies to build additional units on site, provided the number
of units is determined in consultation with residents,
community leaders, and local government officials, and such
additional units affirmatively further fair housing. Provides
exceptions from the on-site building requirement in cases of
consent decrees or land unsuitability, with the requirement
that at least one mixed-income housing development be provided
in the jurisdiction of the public housing agency and that one-
third of the units in that development be public housing
dwelling units. All on-site housing must be provided in a
manner that results in decreased concentrations of poverty.
One-for-One Replacement--Off-Site Housing: Requires
remaining units be built throughout the jurisdiction of the
public housing agency in areas with low concentrations of
poverty and in a manner that affirmatively furthers fair
housing. Provides that replacement housing can be provided
through acquisition, development, and contracting of additional
units as long as the units are comparable to public housing
units in terms of eligibility for occupancy, tenant
contribution toward rent, and long-term affordability. Exempts
public housing agencies from project-based voucher statutory
requirements on income-mixing and percentage limitation.
Rebuilding: Requires units be replaced within 12 months and
for those developments that use low-income housing tax credits,
within 12 months following allocation of tax credits. Provides
that to the greatest extent practicable, the HOPE VI
development be built in phases and that assisted dwelling units
should be provided for occupancy before unassisted dwelling
units.
Monitoring of Displaced Households: Requires public housing
agencies to maintain a current address and contact information
for each household affected by the revitalization plan and
requires agencies to certify prior to close-out that they have
complied with providing housing for families who requested it.
Requires the Secretary to report to Congress biannually on
grantee compliance with this section.
Green Developments: Requires all residential construction
to be built in compliance with the national Green Communities
criteria checklist or a substantially equivalent standard as
determined by the Secretary. Requires all non-residential
construction to be certified to the Silver Level under the LEED
ratings system, or any substantially equivalent standard as
determined by the Secretary.
Limitation on Exclusion: Prohibits public housing agencies
from holding displaced residents or new residents to the HOPE
VI development to a different eligibility standard than other
households. Prohibits the use of any criteria, including credit
checks, to limit the ability of public housing residents to re-
occupy HOPE VI units, or to receive housing choice vouchers,
except to the extent that residents are otherwise ineligible
under Federal law.
Enforcement: Allows HUD to administratively enforce any
violations of the following provisions of the Act: resident
involvement and services, temporary relocation plan, right to
expanded housing opportunities, one-for-one replacement,
monitoring of displaced households, fair housing and limitation
on exclusion, and performance benchmarks. Provides that such
administrative enforcement shall be in addition to any other
rights and remedies provided under law.
Performance Benchmarks: Allows HUD to create performance
benchmarks and to impose sanctions on public housing agencies
that fail to meet such benchmarks. Sanctions include
appointment of an alternative administrator; financial
penalties; withdrawal of funding; or other sanctions as the
Secretary may deem necessary. Allows for the extension of
benchmarks in cases of litigation; delays from Federal, State,
or local government; compliance with environmental assessment
and abatements; relocation of residents; resident involvement
that leads to significant changes to the revitalization plan;
or other reasons established by the Secretary.
Applicability of Other Laws: Clarifies that the Uniform
Relocation and Real Property Acquisition Policies Act of 1970
applies to the HOPE VI program.
Section 9. Planning and technical assistance grants
Requires the Secretary to use not less than two percent of
funds to assist grant recipients in obtaining planning and
technical assistance to carry out their revitalization
programs.
Section 10. Annual report and availability of documents
Requires the Secretary to report to Congress on the
progress of HOPE VI grants and to make all documents relating
to such grants publicly available.
Section 11. Definitions
Expands the definition of ``community and supportive
services,'' to include employment and vocational counseling,
financial counseling, life skills training, and services linked
with housing that will improve the health and residential
stability of public housing residents. Defines ``significant
amendment or change,'' as an activity that changes the use of
10 percent or more of the funds, eliminates an activity that
otherwise would have been carried out, or changes the scope,
location, or beneficiaries of the revitalization plan. Defines
``comprehensive relocation assistance'' as comprehensive
assistance necessary to relocate members of a household,
includes counseling on housing options, use of a voucher, case
management, housing location, site tours, and other assistance.
Retains the current definition of ``development.''
Section 12. Conforming amendment
Clarifies that the bill addresses revitalization plans.
Section 13. Authorization of appropriations
Authorizes $800 million per year for fiscal years 2008
through 2015.
Section 14. Extension of program
Authorizes the program through September 30, 2015.
Section 15. Review
Requires the Government Accountability Office to study HOPE
VI programs to determine which methods employed by HOPE VI
grantees may be transferable to other federally assisted
housing programs and to make recommendations to Congress not
later than three years after enactment of the Act.
Section 16. Regulations
Requires HUD to issue implementing regulations within 120
days of enactment.
Changes in Existing Law Made by the Bill, as Reported
In compliance with clause 3(e) of rule XIII of the Rules of
the House of Representatives, changes in existing law made by
the bill, as reported, are shown as follows (existing law
proposed to be omitted is enclosed in black brackets, new
matter is printed in italic, existing law in which no change is
proposed is shown in roman):
UNITED STATES HOUSING ACT OF 1937
TITLE I--GENERAL PROGRAM OF ASSISTED HOUSING
* * * * * * *
SEC. 24. DEMOLITION, SITE REVITALIZATION, REPLACEMENT HOUSING, AND
TENANT-BASED ASSISTANCE GRANTS FOR PROJECTS.
(a) Purposes.--The purpose of this section is to provide
assistance to public housing agencies for the purposes of--
(1) improving the living environment for public
housing residents of severely distressed public housing
projects located in communities of all sizes, including
small- and medium-sized communities, through the
demolition, rehabilitation, reconfiguration, or
replacement of obsolete public housing projects (or
portions thereof);
* * * * * * *
(3) providing housing that will avoid or decrease the
concentration of low- and very low-income families;
[and]
(4) building sustainable communities[.]; and
(5) promoting housing choice among low- and very low-
income families.
[It is also the purpose of this section to provide assistance
to smaller communities for the purpose of facilitating the
development of affordable housing for low-income families that
is undertaken in connection with a main street revitalization
or redevelopment project in such communities.]
* * * * * * *
(c) Contribution Requirement.--
(1) * * *
* * * * * * *
(3) Exemption.--If assistance provided under this
title will be used only for providing tenant-based
assistance under section 8 [or demolition of public
housing (without replacement)], the Secretary may
exempt the applicant from the requirements under
paragraph (1)(A).
(4) Waiver.--
(A) Authority.--The Secretary may waive the
applicability of paragraph (1) with respect to
an applicant or grantee if the Secretary
determines that circumstances of extreme
distress or emergency, in the area that the
revitalization plan of the applicant is to be
carried out, directly affect the ability of the
applicant or grantee to comply with such
requirement.
(B) Regulations.--The Secretary shall issue
regulations to carry out this paragraph, which
shall--
(i) set forth such circumstances of
extreme distress and emergency; and
(ii) provide that such circumstances
shall include any instance in which the
area in which a revitalization plan
assisted with amounts from a grant
under this section is to be carried out
is subject to a declaration by the
President of a major disaster or
emergency under the Robert T. Stafford
Disaster Relief and Emergency
Assistance Act.
(d) Eligible Activities.--
(1) In general.--Grants under this section may be
used for activities to carry out revitalization
[programs] plans for severely distressed public
housing, including--
(A) * * *
* * * * * * *
(G) economic development activities that
promote the economic self-sufficiency of
residents under the revitalization [program]
plan, including a Neighborhood Networks
initiative for the establishment and operation
of computer centers in public housing for the
purpose of enhancing the self-sufficiency,
employability, an economic self-reliance of
public housing residents by providing them with
onsite computer access and training resources;
* * * * * * *
[(J) replacement housing (including
appropriate homeownership downpayment
assistance for displaced residents or other
appropriate replacement homeownership
activities) and rental assistance under section
8;]
(J) the acquisition and development of
replacement housing units in accordance with
subsection (j);
(K) transitional security activities; [and]
(L) necessary supportive services, except
that not more than [15 percent] 25 percent of
the amount of any grant may be used for
activities under this paragraph[.];
(M) necessary costs of ensuring the effective
relocation of residents displaced as a result
of the revitalization of the project, including
costs of monitoring as required under
subsection (k); and
(N) activities undertaken to comply with the
provisions of (B)(vii) and (C)(xiii) of
subsection (e)(2) and subsection (l) (relating
to green developments).
* * * * * * *
(e) Application and Selection.--
(1) * * *
[(2) Selection criteria.--The Secretary shall
establish criteria for the award of grants under this
section and shall include among the factors--
[(A) the relationship of the grant to the
public housing agency plan for the applicant
and how the grant will result in a revitalized
site that will enhance the neighborhood in
which the project is located and enhance
economic opportunities for residents;
[(B) the capability and record of the
applicant public housing agency, or any
alternative management entity for the agency,
for managing redevelopment or modernization
projects, meeting construction timetables, and
obligating amounts in a timely manner;
[(C) the extent to which the applicant could
undertake such activities without a grant under
this section;
[(D) the extent of involvement of residents,
State and local governments, private service
providers, financing entities, and developers,
in the development and ongoing implementation
of a revitalization program for the project,
except that the Secretary may not award a grant
under this section unless the applicant has
involved affected public housing residents at
the beginning and during the planning process
for the revitalization program, prior to
submission of an application;
[(E) the need for affordable housing in the
community;
[(F) the supply of other housing available
and affordable to families receiving tenant-
based assistance under section 8;
[(G) the amount of funds and other resources
to be leveraged by the grant;
[(H) the extent of the need for, and the
potential impact of, the revitalization
program;
[(I) the extent to which the plan minimizes
permanent displacement of current residents of
the public housing site who wish to remain in
or return to the revitalized community and
provides for community and supportive services
to residents prior to any relocation;
[(J) the extent to which the plan sustains or
creates more project-based housing units
available to persons eligible for public
housing in markets where the plan shows there
is demand for the maintenance or creation of
such units;
[(K) the extent to which the plan gives to
existing residents priority for occupancy in
dwelling units which are public housing
dwelling units, or for residents who can afford
to live in other units, priority for those
units in the revitalized community; and
[(L) such other factors as the Secretary
considers appropriate.]
(2) Grant award criteria.--
(A) Establishment.--The Secretary shall
establish criteria for the award of grants
under this section.
(B) Mandatory core components.--The criteria
under this paragraph shall require that a
proposed revitalization plan may not be
selected for award of a grant under this
section unless the proposed plan meets all of
the following requirements:
(i) Evidence of severe distress.--The
proposed plan shall contain evidence
sufficient to demonstrate that the
public housing project that is subject
to the plan is severely distressed,
which shall include--
(I) a certification signed by
an engineer or architect
licensed by a State licensing
board that the project meets
the criteria for physical
distress under subsection
(t)(2); and
(II) such other evidence that
the project meets criteria for
nonphysical distress under
subsection (t)(2), such as
census data, crime statistics,
and past surveys of
neighborhood stability
conducted by the public housing
agency.
(ii) Resident involvement and
services.--The proposed plan shall
provide for opportunities for
involvement of residents of the housing
subject to the plan and the provision
of services for such residents, in
accordance with subsection (g).
(iii) Relocation plan.--The proposed
plan shall provide a plan for
relocation of households occupying the
public housing project that is subject
to the plan, in accordance with
subsection (h), including a statement
of the estimated number of vouchers for
rental assistance under section 8 that
will be needed for such relocation.
(iv) Resident right to expanded
housing opportunities.--The proposed
plan provides right of resident
households to occupy housing provided
under such revitalization plan in
accordance with subsection (i).
(v) One-for-one replacement.--The
proposed plan shall provide a plan
that--
(I) provides for replacement
in accordance with subsection
(j) of 100 percent of all
dwelling units demolished or
disposed of under such
revitalization plan, as of the
date of the application for the
grant, on the site of the
original public housing or
within the jurisdiction of the
public housing agency;
(II) identifies the type of
replacement housing that will
be offered to tenants displaced
by the revitalization plan;
(III) contains such
agreements with or assurances
by the Secretary, State and
local governmental agencies,
and other entities sufficient
to ensure compliance with
subsection (j) and the
requirements of section 18
applicable pursuant to
subsection (p)(1); and
(IV) contains such assurances
or agreements as the Secretary
considers necessary to ensure
compliance with subsection
(i)(2).
(vi) Fair housing; limitation on
exclusion.--The proposed plan shall be
carried out in a manner that complies
with section (m) (relating to
affirmatively furthering fair housing
and limitation on exclusion).
(vii) Green developments.--The
proposed plan complies with the
requirement under subsection (l)
(relating to green developments).
(C) Mandatory graded components.--The
criteria under this paragraph shall provide
that, in addition to the requirements under
subparagraph (B), the proposed revitalization
plan shall address and meet minimum
requirements with respect to, and shall provide
additional priority based on the extent to
which the plan satisfactorily addresses, each
of the following issues:
(i) Compliance with purposes.--The
extent to which the proposed plan of an
applicant achieves the purposes of this
section set forth in subsection (a).
(ii) Capability and record.--The
extent of the capability and record of
the applicant public housing agency,
public partners, proposed private
development partners, or any
alternative management entity for the
agency, for managing redevelopment or
modernization projects, meeting
performance benchmarks, and obligating
amounts in a timely manner, including
any past performance of such entities
under the HOPE VI program and any
record of such entities of working with
socially and economically disadvantaged
businesses, as such term is defined in
section 8(a)(4) of the Small Business
Act (15 U.S.C. 637(a)(4)).
(iii) Diversity outreach.--The extent
to which the proposed revitalization
plan includes partnerships with
socially and economically disadvantaged
businesses, as such term is defined by
section 8(a)(4) of the Small Business
Act.
(iv) Effectiveness of relocation and
one-for-one replacement plans.--The
extent of the likely effectiveness of
the proposed revitalization plan for
temporary and permanent relocation of
existing residents, including the
likely effectiveness of the relocation
plan under subparagraph (B)(iii) and
the one-for-one replacement plan under
subparagraph (B)(v).
(v) Achievability of revitalization
plan.--The achievability of the
proposed revitalization plan pursuant
to subsection (o), with respect to the
scope and scale of the project.
(vi) Leveraging.--The extent to which
the proposed revitalization plan will
leverage other public or private funds
or assets for the project.
(vii) Need for additional funding.--
The extent to which the applicant could
undertake the activities proposed in
the revitalization plan without a grant
under this section.
(viii) Public and private
involvement.--The extent of involvement
of State and local governments, private
service providers, financing entities,
and developers, in the development and
ongoing implementation of the
revitalization plan.
(ix) Need for affordable housing.--
The extent of need for affordable
housing in the community in which the
proposed revitalization plan is to be
carried out.
(x) Affordable housing supply.--The
extent of the supply of other housing
available and affordable to families
receiving tenant-based assistance under
section 8.
(xi) Project-based housing.--The
extent to which the proposed
revitalization plan sustains or creates
more project-based housing units
available to persons eligible for
residency in public housing in markets
where the proposed plan shows there is
demand for the maintenance or creation
of such units.
(xii) Green developments
compliance.--The extent to which the
proposed revitalization plan--
(I) in the case of
residential construction,
complies with the nonmandatory
items of the national Green
Communities criteria checklist
identified in subsection
(l)(1)(A), or any substantially
equivalent standard as
determined by the Secretary,
but only to the extent such
compliance exceeds the
compliance necessary to
accumulate the number of points
required under such subsection;
and
(II) in the case of non-
residential construction,
includes non-mandatory
components of version 2.2 of
the Leadership in Energy and
Environmental Design (LEED)
green building rating system
for New Construction and Major
Renovations, version 2.0 of the
LEED for Core and Shell rating
system, or version 2.0 of the
LEED for Commercial Interiors
rating system, as applicable,
or any substantially equivalent
standard as determined by the
Secretary, but only to the
extent such inclusion exceeds
the inclusion necessary to
accumulate the number of points
required under such system.
(xiii) Hard-to-house families.--The
extent to which the one-for-one
replacement plan under subparagraph
(B)(v) for the revitalization plan
provides replacement housing that is
likely to be most appropriate and
beneficial for families whose housing
needs are difficult to fulfill,
including individuals who are not
ineligible for occupancy in public
housing pursuant to subsection (m)(2),
have been released from a State or
Federal correctional facility, have not
been arrested for or charged with any
crime during the period beginning upon
probation or parole and ending one year
after completion of probation or
parole, and for whom affordable housing
is a critical need.
(xiv) Family-friendly housing.--The
extent to which replacement housing
units provided through the
revitalization plan contain a
sufficient number of bedrooms to
prevent overcrowding.
(xv) Additional on-site mixed-income
housing.--The extent to which the one-
for-one replacement plan under
subparagraph (B)(v) provides public
housing units in addition to the number
necessary to minimally comply with the
requirement under subsection
(j)(2)(A)(i), including the extent to
which such plan provides sufficient
housing for elderly and disabled
residents who indicate a preference to
return to housing provided on the site
of the original public housing involved
in the revitalization plan and complies
with the requirements of subsection
(j)(2)(A)(ii).
(xvi) Other.--Such other factors as
the Secretary considers appropriate.
(3) Applicability of selection criteria.--The
Secretary may determine not to apply certain of the
selection criteria established pursuant to paragraph
(2) when awarding grants for [demolition only,] tenant-
based assistance only[,] or other specific categories
of revitalization activities. This section may not be
construed to require any application for a grant under
this section to include demolition of public housing or
to preclude use of grant amounts for rehabilitation or
rebuilding of any housing on an existing site.
(4) Prohibition of demolition-only grants.--The
Secretary may not make a grant under this section for a
revitalization plan that proposes to demolish public
housing without revitalization of any existing public
housing dwelling units.
(5) Treatment of low-income housing tax credit
allocation.--In the case of any application for a grant
under this section that relies on the allocation of any
low-income housing tax credit provided pursuant to
section 42 of the Internal Revenue Code of 1986 as part
of the revitalization plan proposed in the application,
the Secretary shall not require that the first phase of
any project to be developed under the plan possess an
allocation of such low-income housing tax credits at
the time of such application.
(6) Mandatory site visits.--Notwithstanding any other
provision of law, the Secretary shall provide for
appropriate officers or employees of the Department of
Housing and Urban Development to conduct a visit to the
site of the public housing involved in the
revitalization plan proposed under each application for
a grant under this section that is involved in a final
selection of applications to be funded under this
section. Site visits pursuant to this paragraph shall
be used only for the purpose of obtaining information
to assist in determining whether the public housing
projects involved in the application are severely
distressed public housing.
(f) Cost Limits.--Subject to the provisions of this section,
the Secretary--
(1) shall establish cost limits on eligible
activities under this section sufficient to provide for
effective revitalization [programs] plans; and
* * * * * * *
[(g) Disposition and Replacement.--Any severely distressed
public housing disposed of pursuant to a revitalization plan
and any public housing developed in lieu of such severely
distressed housing, shall be subject to the provisions of
section 18. Severely distressed public housing demolished
pursuant to a revitalization plan shall not be subject to the
provisions of section 18.]
(g) Resident Involvement and Services.--
(1) In general.--Each revitalization plan assisted
under this section shall provide opportunities for the
active involvement and participation of, and
consultation with, residents of the public housing that
is subject to the revitalization plan during the
planning process for the revitalization plan, including
prior to submission of the application, and during all
phases of the planning and implementation. Such
opportunities for participation may include
participation of members of any resident council, but
may not be limited to such members, and shall include
all segments of the population of residents of the
public housing that is subject to the revitalization
plan, including single parent-headed households, the
elderly, young employed and unemployed adults, teenage
youth, and disabled persons. Such opportunities shall
include a process that provides opportunity for comment
on specific proposals for redevelopment, any demolition
and disposition involved, and any proposed significant
amendments or changes to the revitalization plan.
(2) Notices.--In carrying out a revitalization plan
assisted under this section, a public housing agency
shall provide the following written notices, in plain
and nontechnical language, to each household occupying
a dwelling unit in the public housing that is subject
to, or to be subject to, the plan:
(A) Notice of intent.--Not later than the
expiration of the 30-day period beginning upon
publication by the Secretary of a notice of
funding availability for a grant under this
section for such plan, notice of--
(i) the public housing agency's
intent to submit such application;
(ii) the proposed implementation and
management of the revitalized site;
(iii) residents' rights under this
section to participate in the planning
process for the plan, including
opportunities for participation in
accordance with paragraph (1), and to
receive comprehensive relocation
assistance and community and supportive
services pursuant to paragraph (4); and
(iv) the public hearing pursuant to
paragraph (3).
(B) Notice of grant award and relocation
options.--Not later than 30 days after notice
to the public housing agency of the award of a
grant under this section, notice that--
(i) such grant has been awarded;
(ii) describes the process involved
under the revitalization plan to
temporarily relocate residents of the
public housing that is subject to the
plan;
(iii) provides the information
required pursuant to subsection (h)(2)
(relating to relocation options); and
(iv) informs residents of
opportunities for participation in
accordance with paragraph (1).
(C) Notice of grant agreement and relocation
options.--Not later than 30 days after
execution of a grant agreement under this
section with a public housing agency, notice
that--
(i) specifically identifies the
housing available for relocation of
resident of the public housing subject
to the revitalization plan;
(ii) sets forth the schedule for
relocation of residents of the public
housing subject to the revitalization
plan, including the dates on which such
housing will be available for such
relocation; and
(iii) informs residents of
opportunities for participation in
accordance with paragraph (1).
(D) Notice of replacement housing.--Upon the
availability of replacement housing provided
pursuant to subsection (j), notice to each
household described in subsection (i)(1) of--
(i) such availability;
(ii) the process and procedure for
exercising the right to expanded
housing opportunities and preferences
under subsection (i)(2); and
(iii) opportunities for participation
in accordance with paragraph (1) of
this subsection.
(E) Other.--Such other notices as the
Secretary may require.
(3) Public hearing.--The Secretary may not make a
grant under this section to an applicant unless the
applicant has convened and conducted a public hearing
regarding the revitalization plan, including the one-
for-one replacement to occur under the plan, not later
than 75 days before submission of the application for
the grant under this section for such plan, at a time
and location that is convenient for residents of the
public housing subject to the plan.
(4) Services.--Each recipient of a grant under this
section shall--
(A) provide each household who is residing at
the site of the revitalization as of the date
of the notice of intent under subparagraph (A)
with comprehensive relocation assistance for a
period that is the latter of the two periods
referred to in subparagraph (B) with
comprehensive relocation assistance; and
(B) offer, to each such displaced resident
and each low-income family provided housing
under the revitalization plan, community and
supportive services until the latter of--
(i) the expiration of the two-year
period that begins upon the end of the
development period under the plan; and
(ii) the date on which all funding
under the grant for community and
supportive services has been expended.
(h) Relocation Program.--Each recipient of a grant under this
section shall--
(1) provide for each household displaced by the
revitalization plan for which the grant is made to be
relocated to a comparable replacement dwelling, as
defined in section 101 of the Uniform Relocation
Assistance and Real Property Acquisition Policies Act
of 1970 (42 U.S.C. 4601), and for payment of actual and
reasonable relocation expenses of each such household
and any replacement housing payments as are required by
the Uniform Relocation Assistance and Real Property
Acquisition Policies Act of 1970;
(2) fully inform such households of all relocation
options, which may include relocating to housing in a
neighborhood with a lower concentration of poverty than
their current residence or remaining in the housing to
which they relocate;
(3) to the maximum extent possible, minimize academic
disruptions on affected children enrolled in school by
coordinating relocation with school calendars;
(4) establish strategies and plans that assist such
displaced residents in utilizing tenant-based vouchers
to select housing opportunities, including in
communities with a lower concentration of poverty,
that--
(A) will not result in a financial burden to
the family; and
(B) will promote long-term housing stability;
(5) establish and comply with relocation benchmarks
that ensure successful relocation in terms of
timeliness; and
(6) notwithstanding any other provision of law, in
the case of any tenant-based assistance made available
for relocation of a household under this subsection,
provide that the term during which the household may
lease a dwelling unit using such assistance shall not
be shorter than 150 days; if the household is unable to
lease a dwelling unit during such period, the public
housing agency shall either extend the period during
which the household may lease a dwelling unit using
such assistance or provide the tenant with the next
available dwelling unit owned by the public housing
agency.
(i) Right to Expanded Housing Opportunities for Resident
Households.--
(1) In general.--Subject only to paragraph (3), each
revitalization plan assisted with a grant under this
section shall make available, to each household
occupying a dwelling unit in the public housing subject
to a revitalization plan that is displaced as a result
of the revitalization plan (including any demolition or
disposition of the unit), occupancy for such household
in a replacement dwelling unit provided pursuant to
subsection (j). To exercise such right under this
paragraph to occupancy in such a replacement dwelling
unit, the household shall respond in writing to the
notice provided pursuant to subsection (g)(2)(C) by the
public housing agency.
(2) Preferences.--Such a replacement dwelling unit
shall be made available to each household displaced as
a result of the revitalization plan before any
replacement dwelling unit is made available to any
other eligible household.
(3) Reports to secretary.--The Secretary shall
require each public housing agency carrying out a
revitalization plan assisted under this section to
submit to the Secretary such reports as may be
necessary to allow the Secretary to determine the
extent to which the public housing agency has complied
with this subsection and to which displaced residents
occupy replacement housing provided pursuant to
subsection (j), which shall include information
describing the location of replacement housing provided
pursuant to subsection (j) and statistical information
on the characteristics of all households occupying such
replacement housing.
(j) One-for-One Replacement.--Each revitalization plan
assisted with a grant under this section under which any public
housing dwelling unit is demolished or disposed of shall
provide as follows:
(1) Number.--For one hundred percent of all such
dwelling units in existence as of the date of the
application for the grant that are demolished or
disposed under the revitalization plan, the public
housing agency carrying out the plan shall provide an
additional dwelling unit.
(2) Location.--Such dwelling units shall be provided
in the following manner:
(A) On-site mixed-income housing.--
(i) One-third requirement.--A mixed-
income housing development shall be
provided on the site of the original
public housing involved in the
revitalization plan in which, except as
provided in clause (iii), at least one-
third of all dwelling units shall be
public housing dwelling units and shall
be provided through the development of
additional public housing dwelling
units.
(ii) Requirements for additional on-
site units.--If the mixed-income
housing development provided pursuant
to clause (i) includes more public
housing dwelling units at the site of
the original public housing than is
minimally necessary to comply with such
clause, the public housing agency shall
consult with residents, community
leaders, and local government officials
regarding such additional public
housing dwelling units and shall ensure
that such units are provided in a
manner that affirmatively furthers fair
housing.
(iii) Exception.--If, upon a showing
by a public housing agency, the
Secretary determines that it is
infeasible to locate replacement
dwelling units on the site of the
original public housing involved in the
revitalization plan in accordance with
clause (i), all replacement units shall
be located in areas within the
jurisdiction of the public housing
agency having low concentrations of
poverty, except that at least one
mixed-income housing development shall
be provided in such an area within the
jurisdiction of the public housing
agency and that one-third of all units
in such development shall be public
housing dwelling units. The Secretary
may make a finding of infeasibility
under this clause only if--
(I) such location on-site
would result in the violation
of a consent decree; or
(II) the land on which the
public housing is located is
environmentally unsafe,
geologically unstable, or
otherwise unsuitable for the
construction of housing, as
evidenced by an independent
environmental review or
assessment.
(iv) Deconcentration of poverty.--All
dwelling units provided pursuant to
this subparagraph shall be provided in
a manner that results in decreased
concentrations of poverty, with respect
to such concentrations existing on the
date of the application for the grant
under this section.
(B) Off-site mixed-income housing.--Any other
replacement housing units provided in addition
to the dwelling units provided pursuant to
subparagraph (A) shall be provided, in areas
within the jurisdiction of the public housing
agency having low concentrations of poverty,
through--
(i) the acquisition or development of
additional public housing dwelling
units; or
(ii) the acquisition, development, or
contracting (including through project-
based assistance) of additional
dwelling units that are subject to
requirements regarding eligibility for
occupancy, tenant contribution toward
rent, and long-term affordability
restrictions which are comparable to
public housing units, except that
subparagraphs (B) and (D) of section
8(o)(13) of the United States Housing
Act of 1937 (42 U.S.C. 1437f(o)(13);
relating to percentage limitation and
income-mixing requirement for project-
based assistance) shall not apply with
respect to vouchers used to comply with
the requirements of this clause.
(3) Timing.--All replacement dwelling units provided
pursuant to this subsection shall be provided not later
than the expiration of the 12-month period beginning
upon the demolition or disposition of the public
housing dwelling units, except that replacement
dwelling units financed with a low-income housing tax
credit under section 42 of the Internal Revenue Code of
1986 in connection with the revitalization plan shall
be provided not later than the expiration of the 12-
month period beginning upon the allocation of such low-
income housing tax credit. To the greatest extent
practicable, such replacement or additional dwelling
units, or redevelopment, shall be accomplished in
phases over time and, in each such phase, the public
housing dwelling units and the dwelling units described
in subparagraph (B)(ii) of paragraph (2) shall be made
available for occupancy before any nonassisted dwelling
unit is made available for occupancy.
(4) Fair housing.--The demolition or disposition,
relocation, and provision of replacement housing units
under paragraph (2)(B) shall be carried out in a manner
that affirmatively furthers fair housing, as described
in subsection (e) of section 808 of the Civil Rights
Act of 1968 (42 U.S.C. 3608(e)).
(k) Monitoring of Displaced Households.--
(1) PHA responsibilities.--To facilitate compliance
with the requirement under subsection (i) (relating to
right to expanded housing opportunities), the Secretary
shall, by regulation, require each public housing
agency that receives a grant under this section, during
the period of the revitalization plan assisted with the
grant and until all funding under the grant has been
expended--
(A) to maintain a current address of
residence and contact information for each
household affected by the revitalization plan
who was occupying a dwelling unit in the
housing that is subject to the plan; and
(B) to provide such updated information to
the Secretary on at least a quarterly basis.
(2) Certification.--The Secretary may not close out
any grant made under this section to a public housing
agency before the agency has certified to the Secretary
that the agency has complied with subsection (i)
(relating to a right to expanded housing opportunities
for resident households) with respect to each resident
displaced as a result of the revitalization plan,
including providing occupancy in a replacement dwelling
unit for each household who requested such a unit in
accordance with such subsection.
(3) Reports by secretary.--Not less frequently than
once every six months, the Secretary shall submit a
report to the Congress that includes all information
submitted to the Secretary pursuant to paragraph (1) by
all public housing agencies and summarizes the extent
of compliance by public housing agencies with the
requirements under this subsection and subsection (i).
(l) Green Developments Requirement.--
(1) Requirement.--The Secretary may not make a grant
under this section to an applicant unless the proposed
revitalization plan of the applicant to be carried out
with such grant amounts meets the following
requirements, as applicable:
(A) Green communities criteria checklist.--
All residential construction under the proposed
plan complies with the national Green
Communities criteria checklist for residential
construction that provides criteria for the
design, development, and operation of
affordable housing, as such checklist is in
effect for purposes of this subsection pursuant
to paragraph (3) at the date of the application
for the grant, or any substantially equivalent
standard as determined by the Secretary, as
follows:
(i) The proposed plan shall comply
with all items of the national Green
Communities criteria checklist for
residential construction that are
identified as mandatory.
(ii) The proposed plan shall comply
with such other nonmandatory items of
such national Green Communities
criteria checklist so as to result in a
cumulative number of points
attributable to such nonmandatory items
under such checklist of not less than--
(I) 25 points, in the case of
any proposed plan (or portion
thereof) consisting of new
construction; and
(II) 20 points, in the case
of any proposed plan (or
portion thereof) consisting of
rehabilitation.
(B) LEED ratings system.--All non-residential
construction under the proposed plan complies
with version 2.2 of the LEED for New
Construction rating system, version 2.0 of the
LEED for Core and Shell rating system, version
2.0 of the LEED for Commercial Interiors rating
system, as such systems are in effect for
purposes of this subsection pursuant to
paragraph (3) at the time of the application
for the grant, at least to the minimum extent
necessary to be certified to the Silver Level
under such system, or any substantially
equivalent standard as determined by the
Secretary.
(2) Verification.--
(A) In general.--The Secretary shall verify,
or provide for verification, sufficient to
ensure that each proposed revitalization plan
carried out with amounts from a grant under
this section complies with the requirements
under paragraph (1) and that the revitalization
plan is carried out in accordance with such
requirements and plan.
(B) Timing.--In providing for such
verification, the Secretary shall establish
procedures to ensure such compliance with
respect to each grantee, and shall report to
the Congress with respect to the compliance of
each grantee, at each of the following times:
(i) Not later than 60 days after
execution of the grant agreement under
this section for the grantee.
(ii) Upon completion of the
revitalization plan of the grantee.
(3) Applicability and updating of standards.--
(A) Applicability.--Except as provided in
subparagraph (B), the national Green
Communities criteria checklist and LEED rating
systems referred to in subparagraphs (A) and
(B) that are in effect for purposes of this
subsection are such checklist and systems as in
existence upon the date of the enactment of the
HOPE VI Improvement and Reauthorization Act of
2007.
(B) Updating.--The Secretary may, by
regulation, adopt and apply, for purposes of
this section, future amendments and supplements
to, and editions of, the national Green
Communities criteria checklist, the LEED rating
systems, and any standard that the Secretary
has determined to be substantially equivalent
to such checklist or systems.
(m) Fair Housing; Limitation on Exclusion.--
(1) Fair housing.--Each revitalization plan assisted
under this section shall affirmatively further fair
housing, as described in subsection (e) of section 808
of the Civil Rights Act of 1968.
(2) Limitation on exclusion.--Except to the extent
necessary to comply with the requirements of this
section, replacement housing provided pursuant to
subsection (j) under a revitalization plan of a public
housing agency that is owned or managed, or assisted,
by the agency shall be subject to the same policies,
practices, standards, and criteria regarding waiting
lists, tenant screening (including screening criteria,
such as credit checks), and occupancy that apply to
other housing owned or managed, or assisted,
respectively, by such agency. A household may not be
prevented from occupying a replacement dwelling unit
provided pursuant to subsection (j), or from being
provided a tenant-based voucher under the
revitalization plan, except to the extent specifically
provided by any other provision of Federal law
(including subtitle F of title V of the Quality Housing
and Work Responsibility Act of 1998 (42 U.S.C. 13661 et
seq.; relating to safety and security in public and
assisted housing and ineligibility of drug criminals,
illegal drug users, alcohol abusers, and dangerous sex
offenders), subtitle D of title VI of the Housing and
Community Development Act of 1992), (42 U.S.C. 13611 et
seq.; relating to preferences for elderly and disabled
residents), and section 16(f) of the United States
Housing Act of 1937 (42 U.S.C. 1437n(f); relating to
ineligibility of persons convicted of methamphetamine
offenses)).
(n) Enforcement.--
(1) Administrative enforcement.--If the Secretary
determines on the record after opportunity for an
agency hearing, pursuant to a request made by any
member of household described in subsection (i)(1) who
is adversely affected or aggrieved by a violation of
subsection (g), (h), (i), (j), (k), (m), or (o), that
such a violation has occurred, the Secretary shall
issue an order requiring the public housing agency
committing such violation to cease and desist for such
violation and to take any affirmative action necessary
to correct or remedy the conditions resulting from such
violation.
(2) Availability of other remedies.--The remedy under
paragraph (1) shall be in addition to all other rights
and remedies provided by law.
(o) Performance Benchmarks.--
(1) In general.--Each public housing agency that
receives a grant under this section shall, in
consultation with the Secretary and residents of the
public housing subject to the revitalization plan for
which the grant is made that are displaced as a result
of the revitalization plan, establish performance
benchmarks for each component of their revitalization
plan.
(2) Failure to meet benchmarks.--If a public housing
agency fails to meet the performance benchmarks
established pursuant to paragraph (1), the Secretary
shall impose appropriate sanctions, including--
(A) appointment of an alternative
administrator for the revitalization plan;
(B) financial penalties;
(C) withdrawal of funding under subsection
(j); or
(D) such other sanctions as the Secretary may
deem necessary.
(3) Extension of benchmarks.--The Secretary shall
extend the period for compliance with performance
benchmarks under paragraph (1) for a public housing
agency, for such period as the Secretary determines to
be necessary, if the failure of the agency to meet such
benchmarks is attributable to--
(A) litigation;
(B) obtaining approvals of the Federal
Government or a State or local government;
(C) complying with environmental assessment
and abatement requirements;
(D) relocating residents;
(E) resident involvement that leads to
significant changes to the revitalization plan;
or
(F) any other reason established by the
Secretary by notice published in the Federal
Register.
(4) Authority of secretary.--In determining the
amount of each grant under this section and the
closeout date for the grant, the Secretary shall take
into consideration the scope, scale, and size of the
revitalization plan assisted under the grant.
(p) Applicability of Other Laws.--
(1) Section 18.--Any severely distressed public
housing demolished or disposed of pursuant to a
revitalization plan and any public housing developed in
lieu of such severely distressed housing shall be
subject to the provisions of section 18. To the extent
the provisions of section 18 conflict with or are
duplicative of the provisions of this section, the
provisions of this section solely shall apply.
(2) URA.--The Uniform Relocation and Real Property
Acquisition Policies Act of 1974 shall apply to all
relocation activities pursuant to a revitalization plan
under this section.
[(h)] (q) Administration by Other Entities.--The Secretary
may require a grantee under this section to make arrangements
satisfactory to the Secretary for use of an entity other than
the public housing agency to carry out activities assisted
under the revitalization plan, if the Secretary determines that
such action will help to effectuate the purposes of this
section.
[(i)] (r) Withdrawal of Funding.--If a grantee under this
section does not proceed within a reasonable timeframe, in the
determination of the Secretary, the Secretary shall withdraw
any grant amounts under this section that have not been
obligated by the public housing agency. The Secretary shall
redistribute any withdrawn amounts to one or more other
applicants eligible for assistance under this section or to one
or more other entities capable of proceeding expeditiously in
the same locality in carrying out the revitalization plan of
the original grantee.
[(j)] (s) Definitions.--For purposes of this section, the
following definitions shall apply:
(1) Applicant.--The term ``applicant'' means--
(A) * * *
* * * * * * *
(C) any public housing agency that is
designated as troubled pursuant to section 6(
j)(2) and that--
(i) is so designated principally for
reasons that will not affect the
capacity of the agency to carry out a
revitalization [program] plan;
* * * * * * *
(iii) is otherwise determined by the
Secretary to be capable of carrying out
a revitalization [program] plan.-
(2) Comprehensive relocation assistance.--The term
``comprehensive relocation assistance'' means
comprehensive assistance necessary to relocate the
members of a household, and includes counseling,
including counseling regarding housing options and
locations and use of tenant-based assistance, case
management services, assistance in locating a suitable
residence, site tours, and other assistance.
(3) Development.--The term ``development'' has the
same meaning given such term in the first sentence of
paragraph (1) of section 3(c) (42 U.S.C. 1437a).
[(2)] (4) Severely distressed public housing.--The
term ``severely distressed public housing'' means a
public housing project (or building in a project)--
(A) * * *
* * * * * * *
(5) Significant amendment or change.--The term
``significant'' means, with respect to an amendment or
change to a revitalization plan, that the amendment or
change--
(A) changes the use of 10 percent or more of
the funds provided under the grant made under
this section for the plan from use for one
activity to use for another;
(B) eliminates an activity that,
notwithstanding the change, would otherwise be
carried out under the plan; or
(C) changes the scope, location, or
beneficiaries of the project carried out under
the plan.
[(3) Supportive] (6) Community and supportive
services.--The term ``community and supportive
services'' includes all activities that will promote
upward mobility, self-sufficiency, and improved quality
of life for the residents of the public housing project
involved, including literacy training, job training,
day care, transportation, employment and vocational
counseling, financial counseling, life skills training,
and economic development activities, and such other
services that, linked with affordable housing, will
improve the health and residential stability of public
housing residents.
[(k)] (t) Grantee Reporting.--The Secretary shall require
grantees of assistance under this section to report the sources
and uses of all amounts expended for revitalization plans.
[(l)] (u) Annual Report.--The Secretary shall submit to the
Congress an annual report setting forth--
(1) * * *
* * * * * * *
(3) the amount and type of financial assistance
provided under and in conjunction with this section[,
including a specification of the amount and type of
assistance provided under subsection (n);]; and
[(4) the types of projects funded, and number of
affordable housing dwelling units developed with,
grants under subsection (n); and]
(4) the extent to which public housing agencies
carrying out revitalization plans with grants under
this section have complied with the requirements under
subsection (i) (relating to right to expanded housing
opportunities for resident households); and
(5) the recommendations of the Secretary for
statutory and regulatory improvements to the program
established by this section.
To the extent not inconsistent with any other provisions of
law, the Secretary shall make publicly available through a
World Wide Web site of the Department of Housing and Urban
Development all documents of, or filed with, the Department
relating to the program under this section, including
applications, grant agreements, plans, budgets, reports, and
amendments to such documents; except that in carrying out this
sentence, the Secretary shall take such actions as may be
necessary to protect the privacy of any residents and
households displaced from public housing as a result of a
revitalization plan assisted under this section.
[(m)] (v) Funding.--
(1) Authorization of appropriations.--There are
authorized to be appropriated for grants under this
section [$574,000,000 for fiscal year 2007.]
$800,000,000 for each of fiscal years 2008 through
2015.
[(2) Technical assistance and program oversight.--Of
the amount appropriated pursuant to paragraph (1) for
any fiscal year, the Secretary may use up to 2 percent
for technical assistance or contract expertise,
including assistance in connection with the
establishment and operation of computer centers in
public housing through the Neighborhoods Networks
initiative described in subsection (d)(1)(G). Such
assistance or contract expertise may be provided
directly or indirectly by grants, contracts, or
cooperative agreements, and shall include training, and
the cost of necessary travel for participants in such
training, by or to officials of the Department of
Housing and Urban Development, of public housing
agencies, and of residents.
[(3) Set-aside for main street housing grants.--Of
the amount appropriated pursuant to paragraph (1) for
any fiscal year, the Secretary shall provide up to 5
percent for use only for grants under subsection (n).]
(2) Technical assistance grants.--Subject only to
approvable requests for grants pursuant to paragraph
(1) for any fiscal year, the Secretary shall use not
less than two percent for grants in such fiscal year to
recipients of grants under this section to assist such
recipients in obtaining technical assistance in
carrying out revitalization programs.
[(n) Grants for Assisting Affordable Housing Developed
Through Main Street Projects in Smaller Communities.--
[(1) Authority and use of grant amounts.--The
Secretary may make grants under this subsection to
smaller communities. Such grant amounts shall be used
by smaller communities only to provide assistance to
carry out eligible affordable housing activities under
paragraph (4) in connection with an eligible project
under paragraph (2).
[(2) Eligible project.--For purposes of this
subsection, the term ``eligible project'' means a
project that--
[(A) the Secretary determines, under the
criteria established pursuant to paragraph (3),
is a main street project;
[(B) is carried out within the jurisdiction
of a smaller community receiving the grant; and
[(C) involves the development of affordable
housing that is located in the commercial area
that is the subject of the project.
[(3) Main street projects.--The Secretary shall
establish requirements for a project to be considered a
main street project for purposes of this section, which
shall require that the project--
[(A) has as its purpose the revitalization or
redevelopment of a historic or traditional
commercial area;
[(B) involves investment, or other
participation, by the government for, and
private entities in, the community in which the
project is carried out; and
[(C) complies with such historic preservation
guidelines or principles as the Secretary shall
identify to preserve significant historic or
traditional architectural and design features
in the structures or area involved in the
project.
[(4) Eligible affordable housing activities.--For
purposes of this subsection, the activities described
in subsection (d)(1) shall be considered eligible
affordable housing activities, except that--
[(A) such activities shall be conducted with
respect to affordable housing rather than with
respect to severely distressed public housing
projects; and
[(B) eligible affordable housing activities
under this subsection shall not include the
activities described in subparagraphs (B)
through (E), (J), or (K) of subsection (d)(1).
[(5) Maximum grant amount.--A grant under this
subsection for a fiscal year for a single smaller
community may not exceed $1,000,000.
[(6) Contribution requirement.--A smaller community
applying for a grant under this subsection shall be
considered an applicant for purposes of subsection (c)
(relating to contributions by applicants), except
that--
[(A) such supplemental amounts shall be used
only for carrying out eligible affordable
housing activities; and
[(B) paragraphs (1)(B) and (3) shall not
apply to grants under this subsection.
[(7) Applications and selection.--
[(A) Application.--Pursuant to subsection
(e)(1), the Secretary shall provide for smaller
communities to apply for grants under this
subsection, except that the Secretary may
establish such separate or additional criteria
for applications for such grants as may be
appropriate to carry out this subsection.
[(B) Selection criteria.--The Secretary shall
establish selection criteria for the award of
grants under this subsection, which shall be
based on the selection criteria established
pursuant to subsection (e)(2), with such
changes as may be appropriate to carry out the
purposes of this subsection.
[(8) Cost limits.--The cost limits established
pursuant to subsection (f) shall apply to eligible
affordable housing activities assisted with grant
amounts under this subsection.
[(9) Inapplicability of other provisions.--The
provisions of subsections (g) (relating to disposition
and replacement of severely distressed public housing),
and (h) (relating to administration of grants by other
entities), shall not apply to grants under this
subsection.
[(10) Reporting.--The Secretary shall require each
smaller community receiving a grant under this
subsection to submit a report regarding the use of all
amounts provided under the grant.
[(11) Definitions.--For purposes of this subsection,
the following definitions shall apply:
[(A) Affordable housing.--The term
``affordable housing'' means rental or
homeownership dwelling units that--
[(i) are made available for initial
occupancy to low-income families, with
a subset of units made available to
very- and extremely-low income
families; and
[(ii) are subject to the same rules
regarding occupant contribution toward
rent or purchase and terms of rental or
purchase as dwelling units in public
housing projects assisted with a grant
under this section.
[(B) Smaller community.--The term ``smaller
community'' means a unit of general local
government (as such term is defined in section
102 of the Housing and Community Development
Act of 1974 (42 U.S.C. 5302)) that--
[(i) has a population of 50,000 or
fewer; and
[(ii)(I) is not served by a public
housing agency; or
[(II) is served by a single public
housing agency, which agency
administers 100 or fewer public housing
dwelling units.]
[(o)] (w) Sunset.--No assistance may be provided under this
section after September 30, [2007] 2015.
(x) Regulations.--Not later than the expiration of the 120-
day period beginning on the date of the enactment of the HOPE
VI Improvement and Reauthorization Act of 2007, the Secretary
shall issue regulations to carry out this section, including
the amendments made by such Act.
* * * * * * *
REPUBLICAN ADDITIONAL VIEWS
H.R. 3524, the HOPE VI Improvement and Reauthorization Act,
reauthorizes the HOPE VI program through 2012 and makes several
significant changes to the underlying program. It is our view
that H.R. 3524 includes several very troubling provisions such
as mandatory one-for-one replacement, mandatory compliance with
the Green Communities rating system and the U.S. Green Building
Council's Leadership in Energy and Environmental Design (LEED),
and the elimination of demolition-only grants and tenant
eligibility standards. We are concerned that these and other
provisions will discourage participation in the HOPE VI program
by developers and non-profits, thereby undermining the further
development of affordable housing.
Background
The HOPE VI program was created in 1992 with the express
mission to eliminate and replace some of the most dangerous and
dilapidated public housing in the country with livable mixed-
income communities. The creation of the program was the direct
result of recommendations made in a report submitted to
Congress by the National Commission on Severely Distressed
Public Housing. In the report, the Commission reported that
approximately 6 percent of the 1.4 million existing public
housing apartments (86,000 units) were severely distressed, and
recommended that they be removed from the housing stock. The
HOPE VI program encourages public housing authorities (PHAs) to
seek new partnerships with private entities to create mixed-
finance and mixed-income affordable housing that is developed
and operated very differently from traditional public housing.
The HOPE VI program was modified and extended by the FYs
1994, 1995, 1996, 1997, 1998 and 1999 appropriations acts. HOPE
VI was originally authorized through the end of FY 2002 by
section 535 of the Quality Housing and Work Responsibility Act
of 1998 (QHWRA). The 108th Congress initially extended the
program through the end of FY 2004, but more recently Congress
extended the HOPE VI program through FY 2006. The House passed
a one-year reauthorization bill in the 109th Congress but the
Senate did not take action.
The purpose of the HOPE VI program is to revitalize
severely distressed public housing developments and transform
them into safe, livable environments. HOPE VI has been credited
with eliminating and replacing some of the most dangerous and
dilapidated public housing in the country with new mixed income
communities. Local public housing authorities apply for grants
and use the funds to leverage other private and/or public
funds. The Department of Housing and Urban Development (HUD)
seeks to meet the goals of the HOPE VI program by providing
grants to PHAs for revitalization, or, if this is not
economically feasible, for demolition of distressed public
housing. The activities permitted under HOPE VI include:
(1) The capital costs of demolition, major
reconstruction, rehabilitation and other physical
improvements;
(2) Replacement housing and management improvements;
(3) Planning and technical assistance; and
(4) Implementation of community service programs and
supportive services, or the planning for such
activities.
According to a report released in June 2007 by The Urban
Institute's Metropolitan Housing and Communities Center,
entitled ``HOPE VI'd and On the Move,''
HUD has awarded 609 grants in 193 cities under the
$6.3 billion HOPE VI program, As of June 2006, HOPE VI
revitalization grants have supported the demolition of
78,100 severely distressed units, with another 10,400
units slated for redevelopment. Housing authorities
that receive HOPE VI grants must also develop
supportive services to help both original and new
residents attain self-sufficiency. HOPE VI funds will
support the construction of 103,600 replacement units,
but just 57,100 will be deeply subsidized public
housing units. The rest will receive shallower
subsidies or serve market-rate tenants or homebuyers.
A study of eight HOPE VI sites undertaken by the Housing
Research Foundation (HRF) found that in communities surrounding
a recent HOPE VI revitalization project:
Per capita incomes were up an average of 71
percent (compared to only 14.5 percent for the cities as a
whole).
Neighborhood unemployment rates had fallen by an
average of 8.4 percent.
Only 11 percent of neighborhood households were
receiving public assistance, down from an average of 39 percent
in 1989.
69 percent of households qualified as low-income,
down from 81 percent in 1989.
Commercial and residential lending rates increased
at a faster rate than overall city increases.
Violent crime and overall crime declined by an
average of 46 percent and 68 percent respectively, compared to
a decline of only 25 percent and 38 percent in the overall
city.
Despite its successes, the HOPE VI program is not without
its shortcomings. The Bush Administration and other critics
maintain that the program has accomplished its intended mission
and should now be eliminated. They argue that grantees spend
money too slowly and that the HOPE VI program is not an
efficient method of meeting the current and future capital
needs of public housing or for meeting the affordable housing
needs of low-income families. In addition, tenant advocates
claim that the program displaces more families than it houses
in new developments.
H.R. 3524, The HOPE VI Improvement and Reauthorization Act of 2007
Participation by private sector developers and lenders is
integral to the success of the HOPE VI program. However, H.R.
3524 significantly complicates participation in the program and
changes the risk profile for HOPE VI projects. Congressman
Shays, an original cosponsor of the bill, and other Republican
Members of the Committee worked with the Majority to address
the bill's deficiencies, and while some changes were made
through a manager's amendment during Committee consideration,
there continue to be several areas of disagreement.
Specifically, we remain concerned about provisions that
eliminate the demolition-only grants; impose one-for-one
replacement requirements; create a right of return for tenants
displaced by HOPE VI projects; mandate Green Community/LEED
building standards for all HOPE VI replacement buildings;
eliminate the HOPE VI eligibility standards; require that units
be replaced within 12 months after demolition; and impose
multiple notice schedules.
Elimination of Demolition-only Grants: Current law allows
HUD to award demolition only grants, but H.R. 3524 eliminates
that authority and prohibits the demolition of public housing
units without replacement of those units through
revitalization. Clearly, there may be instances when
demolition-only grants are appropriate. For example, PHAs may
have already assembled a financing package to fund
redevelopment and replacement housing activities but are
lacking the funds for the demolition itself. There may be
severely distressed public housing sites that are not viable
candidates for redevelopment--sites that may have been only
partially occupied or completely vacant. In these instances,
other forms of housing assistance, such as Section 8 vouchers,
may be more appropriate in a community than public housing. For
this reason, we support maintaining HUD's authority to make
demolition-only grants.
Mandatory One-for-One Replacement. H.R. 3524 stipulates
that PHAs must replace every unit that is demolished or
disposed of through a HOPE VI grant, including those units that
were unoccupied prior to demolition. One-third of the
replacement units must be placed on the site of the original
housing and the remaining units within the jurisdiction of the
PHA sponsoring the project. The one-for-one replacement
requirement is inconsistent with the larger objective of the
HOPE VI program, which is to demolish obsolete public housing
units and develop sound strategies to redevelop not only the
property but in many cases an entire community. The promotion
of a mix of incomes for families that will reoccupy the site
and the ``de-concentration'' of poverty are fundamental to the
core mission of the HOPE VI program, and one-for-one
replacement impedes the achievement of that mission.
A one-for-one replacement requirement will affect both
private and public funding and will pose a number of logistical
challenges for private sector participants. Available land and
site control issues are significant barriers to in-fill
development in surrounding or adjacent neighborhoods, which
would force housing agencies to focus construction of
replacement units on the footprint of the development. However,
the footprint is usually not large enough to accommodate both
the replacement of most previous units on site and a mix of
other housing types including market rate units. The end result
would be reconcentration of poverty on the former site. This
would undermine the mixed income model of the HOPE VI program
and could return the development to a state similar to that
before revitalization. The HOPE VI program has met its goal of
providing an improved living environment for many residents of
public housing and that improved quality of life is frequently
due to a move to private market housing with the help of a
Housing Choice Voucher or other federal assistance. The June
2007 Urban Institute report states:
For most residents of the original HOPE VI sites,
relocation is the major program. Our findings show that
for the majority of residents who have moved to the
private market, moving has meant improvements in
neighborhood poverty rates, neighborhood unemployment
rates and housing quality.
H.R. 3524 assumes that families will move from the HOPE VI
site, be temporarily relocated, and then return to the
replacement housing constructed with HOPE VI funds.
While this will be true for some families, it will not be
for all. Some residents will choose to remain in the housing to
which they relocated, or may choose to keep a Section 8 Housing
Choice voucher which empowers the family to make choices about
where and when they wish to move. Implementing the one-for-one
replacement mandate for HOPE VI projects will increase the
overall cost of the program, reduce the number and size of
grants made available and discourage participation by the
private market, which will lead to fewer families receiving
assistance.
Mandated Green Communities and LEED Compliance: H.R. 3524
mandates that developers comply with the criteria of the Green
Communities rating system, operated by Enterprise Community
Partners, for residential projects, and the U.S. Green Building
Council's Leadership in Energy and Environmental Design (LEED)
rating system for mixed-use commercial projects, to the
exclusion of other viable or accredited green building
standards and programs. Green Communities and LEED requirements
in residential and non-residential construction are important
variables that will impact both time and cost estimates for a
development. H.R. 3524 requires HOPE VI grantees to comply with
both mandatory and non-mandatory elements of the Green
Communities and LEED criteria which will inevitably increase
the cost per unit for constructing public housing.
HUD works closely with PHAs to keep total development costs
(TDC) for public housing units in line with federal standards,
and these new mandatory green building requirements could put
many developments over the TDC thresholds. While we agree with
the goal of building greener and more energy and resource-
efficient affordable housing, we question the wisdom of
codifying a specific privately-developed rating tool such as
Green Communities or LEED for a government program. Many
credible and accredited green building standards and programs
exist in the marketplace today or are in the process of being
developed. Codifying green targets to the proprietary
preference of one organization in lieu of other viable
standards is misguided. Not only will it stifle innovation, but
it will also artificially inflate costs for green building
materials. In addition, it creates a profit monopoly for one
organization through commissioning fees that have no
environmental benefit. In a December 26 article in Slate
Magazine by Daniel Brook entitled, ``It's Way Too Easy Being
Green, The Decidedly Dupable System for Rating a Building's
Greenness,'' it is estimated that LEED certification can cost
more than $100,000. A 2006 Home Depot Foundation study found
that incorporating green building elements into residential
construction increases per unit costs by 3-5 percent, and the
United States Green Building Council has estimated that
complying with its forthcoming residential green building
standard will add $12,000 to $15,000 in costs per unit, which
may not be affordable for the mainstream builder.
The National Association of Homebuilders (NAHB) is
currently in the process of establishing the first residential
green building standard accredited by the American National
Standards Institute (ANSI). The ANSI accreditation credential
certifies that the standard has met key criteria in the areas
of balance, openness, consensus, and proper appeals protocols.
The certification process ensures that no stakeholder receives
any undue influence in the development of the benchmarks that
must be environmentally rigorous, as agreed upon by both
industry experts and by the regulatory community (state, local,
and/or federal government) that enforces them. ANSI
accreditation also authenticates an approved standard's ability
to comply with national policy on the use of voluntary
consensus standards (see OMB Circular A-119 (Revised)). For
this reason, the NAHB has stated it will oppose this
legislation if this provision remains in the bill. In a letter
dated September 26, 2007, NAHB said:
NAHB is extremely concerned about the impacts that
the mandatory language in Section 8 for Green
Communities and the LEED rating system will have on
being able to deliver HOPE VI projects. Because other
affordable alternatives exist in the marketplace, and
others are likely to emerge in response to addressing
the challenges of climate changes, the explicit
reference to one rating system in this legislation is
overly restrictive, costly and could limit the number
of projects that can be undertaken within the HOPE VI
program.
The Committee has not been afforded adequate opportunity to
fully investigate the ramifications of mandating green
standards for the HOPE VI program, much less the implications
of mandating a private label green standard such as Green
Communities or LEED in statute. Congresswoman Capito, the
Ranking Republican on the Subcommittee on Housing and Community
Opportunity, offered an amendment during Committee
consideration of H.R. 3524 to modify the costly mandatory green
building standards for the HOPE VI program included in the
bill. Mrs. Capito withdrew her amendment from consideration
after receiving assurances that the Majority would continue to
work toward a consensus on this issue. We are disappointed that
the Majority has not followed through on that commitment.
Elimination of HOPE VI Eligibility Standards. H.R. 3524
would prohibit housing owners and managers (who are generally
private actors, not PHAs) from using eligibility and occupancy
standards that are used in other federally-subsidized housing
programs. Specifically, the bill prohibits PHAs from holding
displaced residents or new residents to the HOPE VI development
to a different eligibility standard than other households.
Specifically, it prohibits the use of any criteria, including
credit checks, to limit the ability of public housing residents
to re-occupy HOPE VI units, or to receive housing choice
vouchers, except to the extent that the residents are otherwise
ineligible by Federal law. In addition, the bill includes
language providing preferences for the ``hard to house,'' which
includes convicted felons. In its analysis of the bill, HUD
questioned why former prisoners should be given preferential
treatment through the HOPE VI program over other vulnerable
households. Furthermore, HUD noted that across most HOPE VI
developments, resident leaders request very strict return
criteria to address these issues in the hope of establishing
new standards for their community. The HOPE VI program has led
the way in revitalizing not only the physical characteristics
of distressed housing but in terms of management and housing
policy in general. The continued success of the HOPE VI program
and its ability to create mixed income communities depends on
the ability of the private partners of public housing
authorities, which include developers, lenders, investors and
management companies, to be able to use fair and reasonable
screening and occupancy policies as a condition for
participation. Prohibiting PHAs and private partners from using
eligibility standards may deter future participation in the
HOPE VI program, which could ultimately impact the future
construction and availability of affordable housing.
Replacement of Units within 12 Month after Demolition. H.R.
3524 includes a requirement to provide all replacement dwelling
units within 12 months after the demolition of the original
project. While we support the goal of increasing the spend out
rate of HOPE VI funds and reducing the time it takes to
complete a HOPE VI project, we share the concern previously
articulated by HUD that this 12-month replacement requirement
may be unworkable. As pointed out in the joint letter to
Chairwoman Waters on September 24, 2007 by the executive
directors of the Council of Large Public Housing Authorities,
National Association of Housing and Redevelopment Officials,
and Public Housing Authorities Directors Association, this
requirement is inconsistent with the financing and development
of newly constructed rental housing:
The requirement does not take into account the
specific circumstances of a community, local building
conditions, or unforeseen setbacks and delays in
financing, construction and redevelopment process. The
assembly and preparation of building sites, the
allocation of low-income housing tax credits and the
availability of financing can be a multi-year effort.
If housing authorities are expected to provide
replacement dwelling units, the statue must provide
scheduling flexibility to structure the phases of their
projects while taking into account the availability of
building sites, financing, types of units and other
local market factors.
Multiple Notice Schedules. H.R. 3524 imposes additional
tenant involvement and participation requirements in the
planning process for a HOPE VI redevelopment project. The bill
requires public housing agencies to inform residents during all
stages of the grant and application process through four
written notices regarding the application, award of the grant,
completion of the grant, and availability of replacement
housing. It is important to note that current law requires
housing agencies to involve residents in the grant application
process, development efforts, relocation and community and
supportive services. Under additional requirements in the
Uniform Relocation Act (URA), which all HOPE VI grantees are
obligated to follow, PHAs must issue a notice of intention to
redevelop a site and of the right of residents to relocation
benefits. Tenant input and participation is essential to the
success of a revitalization program. However, it is important
that the processes and procedures put in place do not impede
the ability to effectively and efficiently implement the
revitalization program. While H.R. 3524 includes many tenant
protections and participation requirements, it does not include
any level of protection for private and public entities
administering or participating in the HOPE VI program. The
absence of adequate safeguards ensuring an orderly and fair
planning and development process for public housing authorities
and private entities may serve as a deterrent to their
participation in the program.
Conclusion
The HOPE VI program is not a cure-all for the
rehabilitation and capital improvement needs of public housing.
However, it has been a program that has worked. Through public-
private partnerships, many severely distressed public housing
developments have been transformed into safe, livable
environments by establishing positive incentives for tenant
self-sufficiency and comprehensive services that empower
residents. Because the overly prescriptive and potentially
burdensome reforms contained in H.R. 3524 threaten to do more
harm than good to the HOPE VI program, we intend to seek
substantial changes to the legislation when it is considered by
the full House.
Shelly Moore Capito.
Peter Roskam.
Ginny Brown-Waite.
Randy Neugebauer.
Kenny Marchant.
Adam H. Putnam.
John Campbell.
Spencer Bachus, III.
Geoff Davis.
Christopher Shays.
Mike Castle.