
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document affected by Public Law 106-402 Section 401(b)(7)]
[CITE: 42USC1437a]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                      CHAPTER 8--LOW-INCOME HOUSING
 
            SUBCHAPTER I--GENERAL PROGRAM OF ASSISTED HOUSING
 
Sec. 1437a. Rental payments


(a) Families included; rent options; minimum amount; occupancy by police 
        officers and over-income families

    (1) Dwelling units assisted under this chapter shall be rented only 
to families who are low-income families at the time of their initial 
occupancy of such units. Reviews of family income shall be made at least 
annually. Except as provided in paragraph (2) and subject to the 
requirement under paragraph (3), a family shall pay as rent for a 
dwelling unit assisted under this chapter (other than a family assisted 
under section 1437f(o) or (y) of this title or paying rent under section 
1437f(c)(3)(B) \1\ of this title) the highest of the following amounts, 
rounded to the nearest dollar:
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    \1\ See References in Text note below.
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        (A) 30 per centum of the family's monthly adjusted income;
        (B) 10 per centum of the family's monthly income; or
        (C) if the family is receiving payments for welfare assistance 
    from a public agency and a part of such payments, adjusted in 
    accordance with the family's actual housing costs, is specifically 
    designated by such agency to meet the family's housing costs, the 
    portion of such payments which is so designated.

    (2) Rental payments for public housing families.--
        (A) Authority for family to select.--
            (i) In general.--A family residing in a public housing 
        dwelling shall pay as monthly rent for the unit the amount 
        determined under clause (i) or (ii) of subparagraph (B), subject 
        to the requirement under paragraph (3) (relating to minimum 
        rents). Each public housing agency shall provide for each family 
        residing in a public housing dwelling unit owned, assisted, or 
        operated by the agency to elect annually whether the rent paid 
        by such family shall be determined under clause (i) or (ii) of 
        subparagraph (B). A public housing agency may not at any time 
        fail to provide both such rent options for any public housing 
        dwelling unit owned, assisted, or operated by the agency.
            (ii) Authority to retain flat and ceiling rents.--
        Notwithstanding clause (i) or any other provision of law, any 
        public housing agency that is administering flat rents or 
        ceiling rents pursuant to any authority referred to in section 
        519(d) of the Quality Housing and Work Responsibility Act of 
        1998 before the effective day of such Act may continue to charge 
        rent in accordance with such rent provisions after such 
        effective date, except that the agency shall provide for 
        families residing in public housing dwelling units owned or 
        operated by the agency to elect annually whether to pay rent 
        under such provisions or in accordance with one of the rent 
        options referred to in subparagraph (A).

        (B) Allowable rent structures.--
            (i) Flat rents.--Except as otherwise provided under this 
        clause, each public housing agency shall establish, for each 
        dwelling unit in public housing owned or operated by the agency, 
        a flat rental amount for the dwelling unit, which shall--
                (I) be based on the rental value of the unit, as 
            determined by the public housing agency; and
                (II) be designed in accordance with subparagraph (D) so 
            that the rent structures do not create a disincentive for 
            continued residency in public housing by families who are 
            attempting to become economically self-sufficient through 
            employment or who have attained a level of self-sufficiency 
            through their own efforts.

        The rental amount for a dwelling unit shall be considered to 
        comply with the requirements of this clause if such amount does 
        not exceed the actual monthly costs to the public housing agency 
        attributable to providing and operating the dwelling unit. The 
        preceding sentence may not be construed to require establishment 
        of rental amounts equal to or based on operating costs or to 
        prevent public housing agencies from developing flat rents 
        required under this clause in any other manner that may comply 
        with this clause.
            (ii) Income-based rents.--
                (I) In general.--The monthly rental amount determined 
            under this clause for a family shall be an amount, 
            determined by the public housing agency, that does not 
            exceed the greatest of the amounts (rounded to the nearest 
            dollar) determined under subparagraphs (A), (B), and (C) of 
            paragraph (1). This clause may not be construed to require a 
            public housing agency to charge a monthly rent in the 
            maximum amount permitted under this clause.
                (II) Discretion.--Subject to the limitation on monthly 
            rental amount under subclause (I), a public housing agency 
            may, in its discretion, implement a rent structure under 
            this clause requiring that a portion of the rent be 
            deposited to an escrow or savings account, imposing ceiling 
            rents, or adopting income exclusions (such as those set 
            forth in subsection (b)(5)(B) of this section), or may 
            establish another reasonable rent structure or amount.

        (C) Switching rent determination methods because of hardship 
    circumstances.--Notwithstanding subparagraph (A), in the case of a 
    family that has elected to pay rent in the amount determined under 
    subparagraph (B)(i), a public housing agency shall immediately 
    provide for the family to pay rent in the amount determined under 
    subparagraph (B)(ii) during the period for which such election was 
    made upon a determination that the family is unable to pay the 
    amount determined under subparagraph (B)(i) because of financial 
    hardship, including--
            (i) situations in which the income of the family has 
        decreased because of changed circumstances, loss of \2\ 
        reduction of employment, death in the family, and reduction in 
        or loss of income or other assistance;
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    \2\ So in original. Probably should be ``or''.
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            (ii) an increase, because of changed circumstances, in the 
        family's expenses for medical costs, child care, transportation, 
        education, or similar items; and
            (iii) such other situations as may be determined by the 
        agency.

        (D) Encouragement of self-sufficiency.--The rental policy 
    developed by each public housing agency shall encourage and reward 
    employment and economic self-sufficiency.
        (E) Income reviews.--Notwithstanding the second sentence of 
    paragraph (1), in the case of families that are paying rent in the 
    amount determined under subparagraph (B)(i), the agency shall review 
    the income of such family not less than once every 3 years.

    (3) Minimum rental amount.--
        (A) Requirement.--Notwithstanding paragraph (1) of this 
    subsection, the method for rent determination elected pursuant to 
    paragraph (2)(A) of this subsection by a family residing in public 
    housing, section 1437f(o)(2) of this title, or section 206(d) of the 
    Housing and Urban-Rural Recovery Act of 1983 (including paragraph 
    (5) of such section), the following entities shall require the 
    following families to pay a minimum monthly rental amount (which 
    amount shall include any amount allowed for utilities) of not more 
    than $50 per month, as follows:
            (i) Each public housing agency shall require the payment of 
        such minimum monthly rental amount, which amount shall be 
        determined by the agency, by--
                (I) each family residing in a dwelling unit in public 
            housing by the agency;
                (II) each family who is assisted under the certificate 
            or moderate rehabilitation program under section 1437f of 
            this title; and
                (III) each family who is assisted under the voucher 
            program under section 1437f of this title, and the agency 
            shall reduce the monthly assistance payment on behalf of 
            such family as may be necessary to ensure payment of such 
            minimum monthly rental amount.

            (ii) The Secretary shall require each family who is assisted 
        under any other program for rental assistance under section 
        1437f of this title to pay such minimum monthly rental amount, 
        which amount shall be determined by the Secretary.

        (B) Exception for hardship circumstances.--
            (i) In general.--Notwithstanding subparagraph (A), a public 
        housing agency (or the Secretary, in the case of a family 
        described in subparagraph (A)(ii)) shall immediately grant an 
        exemption from application of the minimum monthly rental under 
        such subparagraph to any family unable to pay such amount 
        because of financial hardship, which shall include situations in 
        which (I) the family has lost eligibility for or is awaiting an 
        eligibility determination for a Federal, State, or local 
        assistance program, including a family that includes a member 
        who is an alien lawfully admitted for permanent residence under 
        the Immigration and Nationality Act [8 U.S.C. 1101 et seq.] who 
        would be entitled to public benefits but for title IV of the 
        Personal Responsibility and Work Opportunity Reconciliation Act 
        of 1996; (II) the family would be evicted as a result of the 
        imposition of the minimum rent requirement under subparagraph 
        (A); (III) the income of the family has decreased because of 
        changed circumstance, including loss of employment; (IV) a death 
        in the family has occurred; and (V) other situations as may be 
        determined by the agency (or the Secretary, in the case of a 
        family described in subparagraph (A)(ii)).
            (ii) Waiting period.--If a resident requests a hardship 
        exemption under this subparagraph and the public housing agency 
        (or the Secretary, in the case of a family described in 
        subparagraph (A)(ii)) reasonably determines the hardship to be 
        of a temporary nature, an exemption shall not be granted during 
        the 90-day period beginning upon the making of a request for the 
        exemption. A resident may not be evicted during such 90-day 
        period for nonpayment of rent. In such a case, if the resident 
        thereafter demonstrates that the financial hardship is of a 
        long-term basis, the agency (or the Secretary) shall 
        retroactively exempt the resident from the applicability of the 
        minimum rent requirement for such 90-day period.

    (4) Occupancy by police officers.--
        (A) In general.--Subject to subparagraph (B) and notwithstanding 
    any other provision of law, a public housing agency may, in 
    accordance with the public housing agency plan for the agency, allow 
    a police officer who is not otherwise eligible for residence in 
    public housing to reside in a public housing dwelling unit. The 
    number and location of units occupied by police officers under this 
    paragraph and the terms and conditions of their tenancies shall be 
    determined by the public housing agency.
        (B) Increased security.--A public housing agency may take the 
    actions authorized in subparagraph (A) only for the purpose of 
    increasing security for the residents of a public housing project.
        (C) Definition.--In this paragraph, the term ``police officer'' 
    means any person determined by a public housing agency to be, during 
    the period of residence of that person in public housing, employed 
    on a full-time basis as a duly licensed professional police officer 
    by a Federal, State, or local government or by any agency thereof 
    (including a public housing agency having an accredited police 
    force).

    (5) Occupancy by over-income families in certain public housing.--
        (A) Authority.--Notwithstanding any other provision of law, a 
    public housing agency that owns or operates less than 250 units may, 
    on a month-to-month basis, lease a dwelling unit in a public housing 
    project to an over-income family in accordance with this paragraph, 
    but only if there are no eligible families applying for housing 
    assistance from the public housing agency for that month and the 
    agency provides not less than 30-day public notice of the 
    availability of such assistance.
        (B) Terms and conditions.--The number and location of dwelling 
    units of a public housing agency occupied under this paragraph by 
    over-income families, and the terms and conditions of those 
    tenancies, shall be determined by the public housing agency, except 
    that--
            (i) notwithstanding paragraph (2), rent for a unit shall be 
        in an amount that is not less than the costs to operate the 
        unit;
            (ii) if an eligible family applies for residence after an 
        over-income family moves in to the last available unit, the 
        over-income family shall vacate the unit in accordance with 
        notice of termination of tenancy provided by the agency, which 
        shall be provided not less than 30 days before such termination; 
        and
            (iii) if a unit is vacant and there is no one on the waiting 
        list, the public housing agency may allow an over-income family 
        to gain immediate occupancy in the unit, while simultaneously 
        providing reasonable public notice and outreach with regard to 
        availability of the unit.

        (C) Definition.--For purposes of this paragraph, the term 
    ``over-income family'' means an individual or family that is not a 
    low-income family at the time of initial occupancy.

(b) Definition of terms under this chapter

    When used in this chapter:
    (1) The term ``low-income housing'' means decent, safe, and sanitary 
dwellings assisted under this chapter. The term ``public housing'' means 
low-income housing, and all necessary appurtenances thereto, assisted 
under this chapter other than under section 1437f of this title. The 
term ``public housing'' includes dwelling units in a mixed finance 
project that are assisted by a public housing agency with capital or 
operating assistance. When used in reference to public housing, the term 
``low-income housing project'' or ``project'' means (A) housing 
developed, acquired, or assisted by a public housing agency under this 
chapter, and (B) the improvement of any such housing.
    (2) The term ``low-income families'' means those families whose 
incomes do not exceed 80 per centum of the median income for the area, 
as determined by the Secretary with adjustments for smaller and larger 
families, except that the Secretary may establish income ceilings higher 
or lower than 80 per centum of the median for the area on the basis of 
the Secretary's findings that such variations are necessary because of 
prevailing levels of construction costs or unusually high or low family 
incomes. The term ``very low-income families'' means low-income families 
whose incomes do not exceed 50 per centum of the median family income 
for the area, as determined by the Secretary with adjustments for 
smaller and larger families, except that the Secretary may establish 
income ceilings higher or lower than 50 per centum of the median for the 
area on the basis of the Secretary's findings that such variations are 
necessary because of unusually high or low family incomes. Such ceilings 
shall be established in consultation with the Secretary of Agriculture 
for any rural area, as defined in section 1490 of this title, taking 
into account the subsidy characteristics and types of programs to which 
such ceilings apply. In determining median incomes (of persons, 
families, or households) for an area or establishing any ceilings or 
limits based on income under this chapter, the Secretary shall determine 
or establish area median incomes and income ceilings and limits for 
Westchester and Rockland Counties, in the State of New York, as if each 
such county were an area not contained within the metropolitan 
statistical area in which it is located. In determining such area median 
incomes or establishing such income ceilings or limits for the portion 
of such metropolitan statistical area that does not include Westchester 
or Rockland Counties, the Secretary shall determine or establish area 
median incomes and income ceilings and limits as if such portion 
included Westchester and Rockland Counties. In determining areas that 
are designated as difficult development areas for purposes of the low-
income housing tax credit, the Secretary shall include Westchester and 
Rockland Counties, New York, in the New York City metropolitan area.
    (3) Persons and families.--
        (A) Single persons.--The term ``families'' includes families 
    consisting of a single person in the case of (i) an elderly person, 
    (ii) a disabled person, (iii) a displaced person, (iv) the remaining 
    member of a tenant family, and (v) any other single persons. In no 
    event may any single person under clause (v) of the first sentence 
    be provided a housing unit assisted under this chapter of 2 or more 
    bedrooms.
        (B) Families.--The term ``families'' includes families with 
    children and, in the cases of elderly families, near-elderly 
    families, and disabled families, means families whose heads (or 
    their spouses), or whose sole members, are elderly, near-elderly, or 
    persons with disabilities, respectively. The term includes, in the 
    cases of elderly families, near-elderly families, and disabled 
    families, 2 or more elderly persons, near-elderly persons, or 
    persons with disabilities living together, and 1 or more such 
    persons living with 1 or more persons determined under the public 
    housing agency plan to be essential to their care or well-being.
        (C) Absence of children.--The temporary absence of a child from 
    the home due to placement in foster care shall not be considered in 
    determining family composition and family size.
        (D) Elderly person.--The term ``elderly person'' means a person 
    who is at least 62 years of age.
        (E) Person with disabilities.--The term ``person with 
    disabilities'' means a person who--
            (i) has a disability as defined in section 423 of this 
        title,
            (ii) is determined, pursuant to regulations issued by the 
        Secretary, to have a physical, mental, or emotional impairment 
        which (I) is expected to be of long-continued and indefinite 
        duration, (II) substantially impedes his or her ability to live 
        independently, and (III) is of such a nature that such ability 
        could be improved by more suitable housing conditions, or
            (iii) has a developmental disability as defined in section 
        6001 of this title.

    Such term shall not exclude persons who have the disease of acquired 
    immunodeficiency syndrome or any conditions arising from the 
    etiologic agent for acquired immunodeficiency syndrome. 
    Notwithstanding any other provision of law, no individual shall be 
    considered a person with disabilities, for purposes of eligibility 
    for low-income housing under this subchapter, solely on the basis of 
    any drug or alcohol dependence. The Secretary shall consult with 
    other appropriate Federal agencies to implement the preceding 
    sentence.
        (F) Displaced person.--The term ``displaced person'' means a 
    person displaced by governmental action, or a person whose dwelling 
    has been extensively damaged or destroyed as a result of a disaster 
    declared or otherwise formally recognized pursuant to Federal 
    disaster relief laws.
        (G) Near-elderly person.--The term ``near-elderly person'' means 
    a person who is at least 50 years of age but below the age of 62.

    (4) The term ``income'' means income from all sources of each member 
of the household, as determined in accordance with criteria prescribed 
by the Secretary, in consultation with the Secretary of Agriculture, 
except that any amounts not actually received by the family and any 
amounts which would be eligible for exclusion under section 1382b(a)(7) 
of this title may not be considered as income under this paragraph.
    (5) Adjusted income.--The term ``adjusted income'' means, with 
respect to a family, the amount (as determined by the public housing 
agency) of the income of the members of the family residing in a 
dwelling unit or the persons on a lease, after any income exclusions as 
follows:
        (A) Mandatory exclusions.--In determining adjusted income, a 
    public housing agency shall exclude from the annual income of a 
    family the following amounts:
            (i) Elderly and disabled families.--$400 for any elderly or 
        disabled family.
            (ii) Medical expenses.--The amount by which 3 percent of the 
        annual family income is exceeded by the sum of--
                (I) unreimbursed medical expenses of any elderly family 
            or disabled family;
                (II) unreimbursed medical expenses of any family that is 
            not covered under subclause (I), except that this subclause 
            shall apply only to the extent approved in appropriation 
            Acts; and
                (III) unreimbursed reasonable attendant care and 
            auxiliary apparatus expenses for each handicapped member of 
            the family, to the extent necessary to enable any member of 
            such family (including such handicapped member) to be 
            employed.

            (iii) Child care expenses.--Any reasonable child care 
        expenses necessary to enable a member of the family to be 
        employed or to further his or her education.
            (iv) Minors, students, and persons with disabilities.--$480 
        for each member of the family residing in the household (other 
        than the head of the household or his or her spouse) who is less 
        than 18 years of age or is attending school or vocational 
        training on a full-time basis, or who is 18 years of age or 
        older and is a person with disabilities.
            (v) Child support payments.--Any payment made by a member of 
        the family for the support and maintenance of any child who does 
        not reside in the household, except that the amount excluded 
        under this clause may not exceed $480 for each child for whom 
        such payment is made; except that this clause shall apply only 
        to the extent approved in appropriations Acts.
            (vi) Spousal support expenses.--Any payment made by a member 
        of the family for the support and maintenance of any spouse or 
        former spouse who does not reside in the household, except that 
        the amount excluded under this clause shall not exceed the 
        lesser of (I) the amount that such family member has a legal 
        obligation to pay, or (II) $550 for each individual for whom 
        such payment is made; except that this clause shall apply only 
        to the extent approved in appropriations Acts.
            (vii) Earned income of minors.--The amount of any earned 
        income of a member of the family who is not--
                (I) 18 years of age or older; and
                (II) the head of the household (or the spouse of the 
            head of the household).

        (B) Permissive exclusions for public housing.--In determining 
    adjusted income, a public housing agency may, in the discretion of 
    the agency, establish exclusions from the annual income of a family 
    residing in a public housing dwelling unit. Such exclusions may 
    include the following amounts:
            (i) Excessive travel expenses.--Excessive travel expenses in 
        an amount not to exceed $25 per family per week, for employment- 
        or education-related travel.
            (ii) Earned income.--An amount of any earned income of the 
        family, established at the discretion of the public housing 
        agency, which may be based on--
                (I) all earned income of the family,\3\
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    \3\ So in original. The comma probably should be a semicolon.
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                (II) the amount earned by particular members of the 
            family;
                (III) the amount earned by families having certain 
            characteristics; or
                (IV) the amount earned by families or members during 
            certain periods or from certain sources.

            (iii) Others.--Such other amounts for other purposes, as the 
        public housing agency may establish.

    (6) Public housing agency.--
        (A) In general.--Except as provided in subparagraph (B), the 
    term ``public housing agency'' means any State, county, 
    municipality, or other governmental entity or public body (or agency 
    or instrumentality thereof) which is authorized to engage in or 
    assist in the development or operation of public housing.
        (B) Section 1437f program.--For purposes of the program for 
    tenant-based assistance under section 1437f of this title, such term 
    includes--
            (i) a consortia of public housing agencies that the 
        Secretary determines has the capacity and capability to 
        administer a program for assistance under such section in an 
        efficient manner;
            (ii) any other public or private nonprofit entity that, upon 
        the effective date under section 503(a) of the Quality Housing 
        and Work Responsibility Act of 1998, was administering any 
        program for tenant-based assistance under section 1437f of this 
        title (as in effect before the effective date of such Act), 
        pursuant to a contract with the Secretary or a public housing 
        agency; and
            (iii) with respect to any area in which no public housing 
        agency has been organized or where the Secretary determines that 
        a public housing agency is unwilling or unable to implement a 
        program for tenant-based assistance \4\ section 1437f of this 
        title, or is not performing effectively--
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    \4\ So in original. Probably should be ``assistance under''.
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                (I) the Secretary or another public or private nonprofit 
            entity that by contract agrees to receive assistance amounts 
            under section 1437f of this title and enter into housing 
            assistance payments contracts with owners and perform the 
            other functions of public housing agency under section 1437f 
            of this title; or
                (II) notwithstanding any provision of State or local 
            law, a public housing agency for another area that contracts 
            with the Secretary to administer a program for housing 
            assistance under section 1437f of this title, without regard 
            to any otherwise applicable limitations on its area of 
            operation.

    (7) The term ``State'' includes the several States, the District of 
Columbia, the Commonwealth of Puerto Rico, the territories and 
possessions of the United States, and the Trust Territory of the Pacific 
Islands.
    (8) The term ``Secretary'' means the Secretary of Housing and Urban 
Development.
    (9) Drug-related criminal activity.--The term ``drug-related 
criminal activity'' means the illegal manufacture, sale, distribution, 
use, or possession with intent to manufacture, sell, distribute, or use, 
of a controlled substance (as such term is defined in section 802 of 
title 21).
    (10) Mixed-finance project.--The term ``mixed-finance project'' 
means a public housing project that meets the requirements of section 
1437z-7 of this title.
    (11) Public housing agency plan.--The term ``public housing agency 
plan'' means the plan of a public housing agency prepared in accordance 
with section 1437c-1 of this title.
    (12) Capital fund.--The term ``Capital Fund'' means the fund 
established under section 1437g(d) of this title.
    (13) Operating fund.--The term ``Operating Fund'' means the fund 
established under section 1437g(e) of this title.

(c) Definition of terms used in reference to public housing

    When used in reference to public housing:
    (1) The term ``development'' means any or all undertakings necessary 
for planning, land acquisition, demolition, construction, or equipment, 
in connection with a low-income housing project. The term ``development 
cost'' comprises the costs incurred by a public housing agency in such 
undertakings and their necessary financing (including the payment of 
carrying charges), and in otherwise carrying out the development of such 
project, but does not include the costs associated with the demolition 
of or remediation of environmental hazards associated with public 
housing units that will not be replaced on the project site, or other 
extraordinary site costs as determined by the Secretary. Construction 
activity in connection with a low-income housing project may be confined 
to the reconstruction, remodeling, or repair of existing buildings.
    (2) The term ``operation'' means any or all undertakings appropriate 
for management, operation, services, maintenance, security (including 
the cost of security personnel), or financing in connection with a low-
income housing project. The term also means the financing of tenant 
programs and services for families residing in low-income housing 
projects, particularly where there is maximum feasible participation of 
the tenants in the development and operation of such tenant programs and 
services. As used in this paragraph, the term ``tenant programs and 
services'' includes the development and maintenance of tenant 
organizations which participate in the management of low-income housing 
projects; the training of tenants to manage and operate such projects 
and the utilization of their services in project management and 
operation; counseling on household management, housekeeping, budgeting, 
money management, child care, and similar matters; advice as to 
resources for job training and placement, education, welfare, health, 
and other community services; services which are directly related to 
meeting tenant needs and providing a wholesome living environment; and 
referral to appropriate agencies in the community when necessary for the 
provision of such services. To the maximum extent available and 
appropriate, existing public and private agencies in the community shall 
be used for the provision of such services.
    (3) The term ``acquisition cost'' means the amount prudently 
required to be expended by a public housing agency in acquiring property 
for a low-income housing project.
    (4) The term ``congregate housing'' means low-rent housing with 
which there is connected a central dining facility where wholesome and 
economical meals can be served to occupants. Expenditures incurred by a 
public housing agency in the operation of a central dining facility in 
connection with congregate housing (other than the cost of providing 
food and service) shall be considered a cost of operation of the 
project.
    (5) The terms ``group home'' and ``independent living facility'' 
have the meanings given such terms in section 8013(k) of this title.

(d) Disallowance of earned income from rent determinations

                           (1) In general

        Notwithstanding any other provision of law, the rent payable 
    under subsection (a) of this section by a family described in 
    paragraph (3) of this subsection may not be increased as a result of 
    the increased income due to such employment during the 12-month 
    period beginning on the date on which the employment is commenced.

                   (2) Phase-in of rent increases

        Upon the expiration of the 12-month period referred to in 
    paragraph (1), the rent payable by a family described in paragraph 
    (3) may be increased due to the continued employment of the family 
    member described in paragraph (3)(B), except that during the 12-
    month period beginning upon such expiration the amount of the 
    increase may not be greater than 50 percent of the amount of the 
    total rent increase that would be applicable but for this paragraph.

                        (3) Eligible families

        A family described in this paragraph is a family--
            (A) that--
                (i) occupies a dwelling unit in a public housing 
            project; or
                (ii) receives assistance under section 1437f of this 
            title; and

            (B)(i) whose income increases as a result of employment of a 
        member of the family who was previously unemployed for 1 or more 
        years;
            (ii) whose earned income increases during the participation 
        of a family member in any family self-sufficiency or other job 
        training program; or
            (iii) who is or was, within 6 months, assisted under any 
        State program for temporary assistance for needy families funded 
        under part A of title IV of the Social Security Act [42 U.S.C. 
        601 et seq.] and whose earned income increases.

                          (4) Applicability

        This subsection and subsection (e) of this section shall apply 
    beginning upon October 1, 1999, except that this subsection and 
    subsection (e) of this section shall apply with respect to any 
    family described in paragraph 3(A)(ii) \5\ only to the extent 
    provided in advance in appropriations Acts.
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    \5\ So in original. Probably should be paragraph ``(3)(A)(ii)''.
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(e) Individual savings accounts

                           (1) In general

        In lieu of a disallowance of earned income under subsection (d) 
    of this section, upon the request of a family that qualifies under 
    subsection (d) of this section, a public housing agency may 
    establish an individual savings account in accordance with this 
    subsection for that family.

                       (2) Deposits to account

        The public housing agency shall deposit in any savings account 
    established under this subsection an amount equal to the total 
    amount that otherwise would be applied to the family's rent payment 
    under subsection (a) of this section as a result of employment.

                     (3) Withdrawal from account

        Amounts deposited in a savings account established under this 
    subsection may only be withdrawn by the family for the purpose of--
            (A) purchasing a home;
            (B) paying education costs of family members;
            (C) moving out of public or assisted housing; or
            (D) paying any other expense authorized by the public 
        housing agency for the purpose of promoting the economic self-
        sufficiency of residents of public and assisted housing.

(f) Availability of income matching information

                        (1) Disclosure to PHA

        A public housing agency, or the owner responsible for 
    determining the participant's eligibility or level of benefits, 
    shall require any family described in paragraph (2) who receives 
    information regarding income, earnings, wages, or unemployment 
    compensation from the Department of Housing and Urban Development 
    pursuant to income verification procedures of the Department to 
    disclose such information, upon receipt of the information, to the 
    public housing agency that owns or operates the public housing 
    dwelling unit in which such family resides or that provides the 
    housing assistance under this chapter on behalf of such family, as 
    applicable, or to the owner responsible for determining the 
    participant's eligibility or level of benefits.

                        (2) Families covered

        A family described in this paragraph is a family that resides in 
    a dwelling unit--
            (A) that is a public housing dwelling unit;
            (B) for which tenant-based assistance is provided under 
        section 1437f of this title,\6\ or
---------------------------------------------------------------------------
    \6\ So in original. The comma probably should be a semicolon.
---------------------------------------------------------------------------
            (C) for which project-based assistance is provided under 
        section 1437f of this title, section 1437bb \7\ of this title, 
        or section 811.\7\
---------------------------------------------------------------------------
    \7\ See References in Text notes below.
---------------------------------------------------------------------------

(Sept. 1, 1937, ch. 896, title I, Sec. 3, as added Pub. L. 93-383, title 
II, Sec. 201(a), Aug. 22, 1974, 88 Stat. 654; amended Pub. L. 94-375, 
Sec. 2(f), Aug. 3, 1976, 90 Stat. 1068; Pub. L. 95-557, title II, 
Sec. 206(c), Oct. 31, 1978, 92 Stat. 2091; Pub. L. 96-153, title II, 
Sec. 202(a), Dec. 21, 1979, 93 Stat. 1106; Pub. L. 97-35, title III, 
Sec. 322(a), Aug. 13, 1981, 95 Stat. 400; Pub. L. 98-181, title II, 
Secs. 202, 206(a)-(c), Nov. 30, 1983, 97 Stat. 1178, 1179; Pub. L. 98-
479, title I, Sec. 102(b)(1)-(3), Oct. 17, 1984, 98 Stat. 2221; Pub. L. 
100-242, title I, Secs. 102(a), 111, 170(c), Feb. 5, 1988, 101 Stat. 
1821, 1823, 1867; renumbered title I and amended Pub. L. 100-358, 
Secs. 4, 5, June 29, 1988, 102 Stat. 680, 681; Pub. L. 101-235, title 
III, Sec. 302, Dec. 15, 1989, 103 Stat. 2043; Pub. L. 101-625, title V, 
Secs. 515(b), 572, 573(a)-(d), 574, Nov. 28, 1990, 104 Stat. 4199, 4236-
4238; Pub. L. 102-550, title I, Secs. 102-103(a)(2), 185(c)(4), title 
VI, Secs. 621, 622(c), 625(a)(1), Oct. 28, 1992, 106 Stat. 3683, 3748, 
3812, 3817, 3820; Pub. L. 103-233, title III, Sec. 301, Apr. 11, 1994, 
108 Stat. 369; Pub. L. 104-99, title IV, Sec. 402(b)(1), (c), Jan. 26, 
1996, 110 Stat. 40, 41; Pub. L. 104-330, title V, Sec. 501(b)(1), Oct. 
26, 1996, 110 Stat. 4041; Pub. L. 105-276, title V, Secs. 506, 507(a), 
(c), 508(a), (b)(1), (c)(1), (d)(1), 520(a), 523, 524(a), 546, Oct. 21, 
1998, 112 Stat. 2523-2529, 2562, 2565-2567, 2604; Pub. L. 106-74, title 
II, Sec. 214(a), Oct. 20, 1999, 113 Stat. 1074.)

                       References in Text

    Section 1437f(c)(3)(B) of this title, referred to in subsec. (a)(1), 
was repealed by Pub. L. 105-276, title V, Sec. 550(a)(3)(A)(ii), Oct. 
21, 1998, 112 Stat. 2609.
    Section 519(d) of the Quality Housing and Work Responsibility Act of 
1998, referred to in subsec. (a)(2)(A)(ii), is section 519(d) of Pub. L. 
105-276 which is set out as a note below.
    The effective day of such Act and the effective date of such Act, 
referred to in subsecs. (a)(2)(A)(ii) and (b)(6)(B)(ii), probably means 
the general effective date for the Quality Housing and Work 
Responsibility Act of 1998, Pub. L. 105-276, title V, included in 
section 503 of the Act which is set out as an Effective Date of 1998 
Amendment note under section 1437 of this title.
    Section 206(d) of the Housing and Urban-Rural Recovery Act of 1983, 
referred to in subsec. (a)(3)(A), is section 206(d) of Pub. L. 98-181, 
which is set out as a note below.
    The Immigration and Nationality Act, referred to in subsec. 
(a)(3)(B)(i)(I), is act June 27, 1952, ch. 477, 66 Stat. 163, as 
amended, which is classified principally to chapter 12 (Sec. 1101 et 
seq.) of Title 8, Aliens and Nationality. For complete classification of 
this Act to the Code, see Short Title note set out under section 1101 of 
Title 8 and Tables.
    Title IV of the Personal Responsibility and Work Opportunity 
Reconciliation Act of 1996, referred to in subsec. (a)(3)(B)(i)(I), is 
title IV (Sec. 400 et seq.) of Pub. L. 104-193, Aug. 22, 1996, 110 Stat. 
2260, as amended. For complete classification of title IV to the Code, 
see Tables.
    Section 503(a) of the Quality Housing and Work Responsibility Act of 
1998, referred to in subsec. (b)(6)(B)(ii), is section 503(a) of Pub. L. 
105-276 which is set out as an Effective Date of 1998 Amendment note 
under section 1437 of this title.
    The Social Security Act, referred to in subsec. (d)(3)(B)(iii), is 
act Aug. 14, 1935, ch. 531, 49 Stat. 620, as amended. Part A of title IV 
of the Act is classified generally to part A (Sec. 601 et seq.) of 
subchapter IV of chapter 7 of this title. For complete classification of 
this Act to the Code, see section 1305 of this title and Tables.
    Section 1437bb of this title, referred to in subsec. (f)(2)(C), was 
repealed by Pub. L. 104-330, title V, Sec. 501(a), Oct. 26, 1996, 110 
Stat. 4041.
    Section 811, referred to in subsec. (f)(2)(C), means section 811 of 
the United States Housing Act of 1937, but that Act does not contain a 
section 811.


                            Prior Provisions

    A prior section 3 of act Sept. 1, 1937, ch. 896, 50 Stat. 889, as 
amended, established the United States Housing Authority and was 
classified to section 1403 of this title, prior to the general revision 
of this chapter by Pub. L. 93-383.
    Prior similar provisions were contained in section 2 of act Sept. 1, 
1937, ch. 896, 50 Stat. 888, which was classified to section 1402 of 
this title prior to the general revision of this chapter by Pub. L. 93-
383.


                               Amendments

    1999--Subsec. (f)(1). Pub. L. 106-74, Sec. 214(a)(1), inserted ``, 
or the owner responsible for determining the participant's eligibility 
or level of benefits,'' after ``A public housing agency'' and ``, or to 
the owner responsible for determining the participant's eligibility or 
level of benefits'' before period at end.
    Subsec. (f)(2)(C). Pub. L. 106-74, Sec. 214(a)(2), added subpar. 
(C).
    1998--Subsec. (a)(1). Pub. L. 105-276, Sec. 507(c), inserted ``and 
subject to the requirement under paragraph (3)'' after ``paragraph (2)'' 
in third sentence.
    Subsec. (a)(2). Pub. L. 105-276, Sec. 523, amended par. (2) 
generally. For prior text, see 1996 Amendment note below.
    Subsec. (a)(3). Pub. L. 105-276, Sec. 507(a), added par. (3).
    Subsec. (a)(4), (5). Pub. L. 105-276, Sec. 524(a), added pars. (4) 
and (5).
    Subsec. (b)(1). Pub. L. 105-276, Sec. 506(1), inserted after second 
sentence ``The term `public housing' includes dwelling units in a mixed 
finance project that are assisted by a public housing agency with 
capital or operating assistance.''
    Subsec. (b)(2). Pub. L. 105-276, Sec. 508(c)(1), substituted 
``limits for Westchester and Rockland Counties'' for ``limits for 
Westchester County'', inserted ``each'' before ``such county'', 
substituted ``include Westchester or Rockland Counties'' for ``include 
Westchester County'' and ``included Westchester and Rockland Counties'' 
for ``included Westchester County'', and inserted at end ``In 
determining areas that are designated as difficult development areas for 
purposes of the low-income housing tax credit, the Secretary shall 
include Westchester and Rockland Counties, New York, in the New York 
City metropolitan area.''
    Subsec. (b)(3)(A). Pub. L. 105-276, Sec. 506(2)(A), struck out at 
end ``In determining priority for admission to housing under this 
chapter, the Secretary shall give preference to single persons who are 
elderly, disabled, or displaced persons before single persons who are 
eligible under clause (v) of the first sentence.''
    Subsec. (b)(3)(B). Pub. L. 105-276, Sec. 506(2)(B), substituted 
``public housing agency plan'' for ``regulations of the Secretary'' in 
second sentence.
    Subsec. (b)(3)(E). Pub. L. 105-276, Sec. 506(3), inserted at end 
``Notwithstanding any other provision of law, no individual shall be 
considered a person with disabilities, for purposes of eligibility for 
low-income housing under this subchapter, solely on the basis of any 
drug or alcohol dependence. The Secretary shall consult with other 
appropriate Federal agencies to implement the preceding sentence.''
    Subsec. (b)(5). Pub. L. 105-276, Sec. 508(a), amended par. (5) 
generally, substituting present provisions for provisions which had 
defined ``adjusted income'' as income which remained after excluding 
$550 for each member of family in household under 18 years of age, 
disabled, or a student, $400 for any elderly or disabled family, the 
amount by which medical and related expenses exceeded 3 percent of 
income, child care expenses, 10 percent of earned income, and any 
payment made for support and maintenance of nonresident child, spouse, 
or former spouse.
    Subsec. (b)(6). Pub. L. 105-276, Sec. 546, amended par. (6) 
generally. Prior to amendment, par. (6) read as follows: ``The term 
`public housing agency' means any State, county, municipality, or other 
governmental entity or public body (or agency or instrumentality 
thereof) which is authorized to engage in or assist in the development 
or operation of low-income housing.''
    Subsec. (b)(9) to (13). Pub. L. 105-276, Sec. 506(4), added pars. 
(9) to (13).
    Subsec. (c). Pub. L. 105-276, Sec. 508(b)(1)(A), which directed the 
amendment of subsec. (c) by striking out the undesignated par. after 
par. (3), was executed by striking out concluding provisions after par. 
(5), to reflect the probable intent of Congress. Concluding provisions 
read as follows: ``The earnings of and benefits to any public housing 
resident resulting from participation in a program providing employment 
training and supportive services in accordance with the Family Support 
Act of 1988, section 1437t of this title, or any comparable Federal, 
State, or local law shall not be considered as income for the purposes 
of determining a limitation on the amount of rent paid by the resident 
during--
        ``(1) the period that the resident participates in such program; 
    and
        ``(2) the period that--
            ``(A) begins with the commencement of employment of the 
        resident in the first job acquired by the person after 
        completion of such program that is not funded by assistance 
        under this chapter; and
            ``(B) ends on the earlier of--
                ``(i) the date the resident ceases to continue 
            employment without good cause as the Secretary shall 
            determine; or
                ``(ii) the expiration of the 18-month period beginning 
            on the date referred to in subparagraph (A).''
    Subsec. (c)(1). Pub. L. 105-276, Sec. 520(a), inserted before period 
at end of second sentence ``, but does not include the costs associated 
with the demolition of or remediation of environmental hazards 
associated with public housing units that will not be replaced on the 
project site, or other extraordinary site costs as determined by the 
Secretary''.
    Subsecs. (d), (e). Pub. L. 105-276, Sec. 508(b)(1)(B), added 
subsecs. (d) and (e).
    Subsec. (f). Pub. L. 105-276, Sec. 508(d)(1), added subsec. (f).
    1996--Subsec. (a)(2). Pub. L. 104-99, Sec. 402(b)(1), (f), 
temporarily amended par. (2) generally, substituting
    ``(2) Notwithstanding paragraph (1), a public housing agency may--
        ``(A) adopt ceiling rents that reflect the reasonable market 
    value of the housing, but that are not less than the monthly costs--
            ``(i) to operate the housing of the agency; and
            ``(ii) to make a deposit to a replacement reserve (in the 
        sole discretion of the public housing agency); and
        ``(B) allow families to pay ceiling rents referred to in 
    subparagraph (A), unless, with respect to any family, the ceiling 
    rent established under this paragraph would exceed the amount 
    payable as rent by that family under paragraph (1).'' for
    ``(2)(A) Any public housing agency may provide that each family 
residing in a public housing project owned and operated by such agency 
(or in low-income housing assisted under section 1437f of this title 
that contains more than 2,000 dwelling units) shall pay as monthly rent 
an amount determined by such agency to be appropriate that does not 
exceed a maximum amount that--
        ``(i) is established by such agency and approved by the 
    Secretary;
        ``(ii) is not more than the amount payable as rent by such 
    family under paragraph (1); and
        ``(iii) is not less than the average monthly amount of debt 
    service and operating expenses attributable to dwelling units of 
    similar size in public housing projects owned and operated by such 
    agency.
    ``(B) The terms of all ceiling rents established prior to December 
15, 1989, shall be extended without time limitation.'' See Effective and 
Termination Dates of 1996 Amendments note below.
    Subsec. (b)(5)(F). Pub. L. 104-330, Sec. 501(b)(1)(A)(i), inserted 
``and'' after semicolon.
    Subsec. (b)(5)(G). Pub. L. 104-330, Sec. 501(b)(1)(A)(ii), (iii), 
redesignated subpar. (H) as (G) and struck out former subpar. (G) which 
read as follows: ``excessive travel expenses, not to exceed $25 per 
family per week, for employment- or education-related travel, except 
that this subparagraph shall apply only to families assisted by Indian 
housing authorities; and''.
    Subsec. (b)(5)(H). Pub. L. 104-330, Sec. 501(b)(1)(A)(iii), 
redesignated subpar. (H) as (G).
    Pub. L. 104-99, Sec. 402(c), (f), temporarily added subpar. (H) 
which read ``for public housing, any other adjustments to earned income 
established by the public housing agency. If a public housing agency 
adopts other adjustments to income pursuant to subparagraph (H), the 
Secretary shall not take into account any reduction of or increase in 
the public housing agency's per unit dwelling rental income resulting 
from those adjustments when calculating the contributions under section 
1437g of this title for the public housing agency for the operation of 
the public housing.'' See Effective and Termination Dates of 1996 
Amendments note below.
    Subsec. (b)(6). Pub. L. 104-330, Sec. 501(b)(1)(B), struck out at 
end ``The term includes any Indian housing authority.''
    Subsec. (b)(7). Pub. L. 104-330, Sec. 501(b)(1)(C), inserted ``and'' 
before ``the Trust'' and struck out ``, and Indian tribes'' after 
``Pacific Islands''.
    Subsec. (b)(9) to (12). Pub. L. 104-330, Sec. 501(b)(1)(D), struck 
out pars. (9) to (12) which read as follows:
    ``(9) The term `Indian' means any person recognized as being an 
Indian or Alaska Native by an Indian tribe, the Federal Government, or 
any State.
    ``(10) The term `Indian area' means the area within which an Indian 
housing authority is authorized to provide low-income housing.
    ``(11) The term `Indian housing authority' means any entity that--
        ``(A) is authorized to engage in or assist in the development or 
    operation of low-income housing for Indians; and
        ``(B) is established--
            ``(i) by exercise of the power of self-government of an 
        Indian tribe independent of State law; or
            ``(ii) by operation of State law providing specifically for 
        housing authorities for Indians, including regional housing 
        authorities in the State of Alaska.
    ``(12) The term `Indian tribe' means any tribe, band, pueblo, group, 
community, or nation of Indians or Alaska Natives.''
    1994--Subsec. (b)(3)(B). Pub. L. 103-233 substituted ``includes 
families with children and'' for ``means families with children''.
    1992--Subsec. (a)(1). Pub. L. 102-550, Sec. 185(c)(4), substituted 
``section 1437f(o) or (y) of this title or paying rent under section 
1437f(c)(3)(B) of this title'' for ``section 1437f(o) of this title''.
    Subsec. (a)(2)(A). Pub. L. 102-550, Sec. 102(a), struck out ``for 
not more than a 5-year period'' after ``monthly rent''.
    Subsec. (a)(2)(B). Pub. L. 102-550, Sec. 102(b), struck out first 
sentence which read as follows: ``The 5-year limitation established in 
subparagraph (A) shall not apply to any family residing in a public 
housing project administered by an Indian public housing agency.'' and 
substituted ``without time limitation'' for ``for the 5-year period 
beginning on December 15, 1989''.
    Subsec. (b)(3). Pub. L. 102-550, Sec. 621, amended par. (3) 
generally, substituting present provisions for provisions relating to 
families consisting of single persons, elderly families, handicapped 
persons, displaced persons, and families with household heads 50 years 
old or older and the priorities for admission of such families and 
persons to housing under this chapter.
    Subsec. (b)(4). Pub. L. 102-550, Sec. 103(a)(1), inserted ``and any 
amounts which would be eligible for exclusion under section 1382b(a)(7) 
of this title'' after ``family''.
    Subsec. (b)(5)(B). Pub. L. 102-550, Sec. 625(a)(1), inserted ``or 
disabled'' after ``elderly''.
    Subsec. (b)(5)(D). Pub. L. 102-550, Sec. 103(a)(2)(A), added subpar. 
(D) and struck out former subpar. (D) which read as follows: ``(i) child 
care expenses to the extent necessary to enable another member of the 
family to be employed or to further his or her education; or (ii) 
excessive travel expenses, not to exceed $25 per family per week, for 
employment or education related travel, except that this clause shall 
apply only to families assisted by Indian housing authorities;''.
    Subsec. (b)(5)(G). Pub. L. 102-550, Sec. 103(a)(2)(B)-(D), added 
subpar. (G).
    Subsec. (c)(4), (5). Pub. L. 102-550, Sec. 622(c), which directed 
the amendment of subsec. (c) by inserting pars. (4) and (5) after 
``project.'', was executed by making the insertion after ``project.'' at 
the end of par. (3), to reflect the probable intent of Congress.
    1990--Pub. L. 101-625, Sec. 515(b), added concluding undesignated 
par. directing that earnings and benefits to public housing residents 
resulting from participation in programs providing employment training 
and supportive services not be considered as income.
    Subsec. (a)(1). Pub. L. 101-625, Sec. 572(1), substituted ``low-
income families'' for ``lower income families'' in introductory 
provisions.
    Subsecs. (a)(2)(A), (b)(1). Pub. L. 101-625, Sec. 572(2), 
substituted ``low-income housing'' for ``lower income housing'' wherever 
appearing.
    Subsec. (b)(2). Pub. L. 101-625, Sec. 573(d), inserted sentences at 
end relating to determination or establishment of median incomes and 
income ceilings and limits for Westchester County and for metropolitan 
statistical areas outside Westchester County.
    Pub. L. 101-625, Sec. 572(1), substituted ``low-income families'' 
for ``lower income families'' wherever appearing.
    Subsec. (b)(3). Pub. L. 101-625, Sec. 574, inserted sentence at end 
relating to effect of temporary absence of child from the home due to 
placement in foster care on considerations of family composition and 
size.
    Pub. L. 101-625, Sec. 573(a), substituted ``(D) and any other single 
persons. In no event may any single person under clause (D) be provided 
a housing unit assisted under this chapter of 2 bedrooms or more.'' for 
``(D) other single persons in circumstances described in regulations of 
the Secretary.'' in first sentence, struck out after first sentence ``In 
no event shall more than 15 per centum of the units under the 
jurisdiction of any public housing agency be occupied by single persons 
under clause (D).'', and struck out third from last sentence which was 
executed (to reflect the probable intent of Congress) by striking out 
third sentence from end which read as follows: ``The Secretary may 
increase the limitation described in the second sentence of this 
paragraph to not more than 30 per centum if, following consultation with 
the public housing agency involved, the Secretary determines that the 
dwelling units involved are neither being occupied, nor are likely to be 
occupied within the next 12 months, by families or persons described in 
clauses (A), (B), and (C), due to the condition or location of such 
dwelling units, and that such dwelling units may be occupied if made 
available to single persons described in clause (D).''
    Subsec. (b)(4). Pub. L. 101-625, Sec. 573(b), inserted before period 
at end ``, except that any amounts not actually received by the family 
may not be considered as income under this paragraph''.
    Subsec. (b)(5)(A). Pub. L. 101-625, Sec. 573(c)(1), substituted 
``$550'' for ``$480''.
    Subsec. (b)(5)(C). Pub. L. 101-625, Sec. 573(c)(2), struck out 
``elderly'' before ``family'' in cl. (i) and struck out ``and'' at end.
    Subsec. (b)(5)(E), (F). Pub. L. 101-625, Sec. 573(c)(3), added 
subpars. (E) and (F).
    Subsecs. (b)(6), (10), (11)(A), (c). Pub. L. 101-625, Sec. 572(2), 
substituted ``low-income housing'' for ``lower income housing'' wherever 
appearing.
    1989--Subsec. (a)(2)(A). Pub. L. 101-235, Sec. 302(1), substituted 
``5-year period'' for ``3-year period''.
    Subsec. (a)(2)(B). Pub. L. 101-235, Sec. 302(2), substituted ``5-
year limitation'' for ``3-year limitation'' and inserted at end ``The 
terms of all ceiling rents established prior to December 15, 1989, shall 
be extended for the 5-year period beginning on December 15, 1989.''
    1988--Subsec. (a). Pub. L. 100-242, Sec. 102(a), designated existing 
provisions as par. (1), substituted ``Except as provided in paragraph 
(2), a'' for ``A'', redesignated former pars. (1) to (3) as subpars. (A) 
to (C), respectively, and added par. (2).
    Subsec. (b)(3). Pub. L. 100-242, Sec. 170(c), in cl. (A), 
substituted ``sixty-two years of age,'' for ``sixty-two years of age 
or'', and ``, has a developmental disability as defined in section 
6001(7) of this title'' for ``or in section 102 of the Developmental 
Disabilities Services and Facilities Construction Amendments of 1970''.
    Pub. L. 100-242, Sec. 111, inserted provisions relating to 
determination of priority admission to public housing projects designed 
for elderly families.
    Subsec. (b)(5)(D). Pub. L. 100-358, Sec. 4(a), designated existing 
provisions as cl. (i) and added cl. (ii).
    Subsec. (b)(6). Pub. L. 100-358, Sec. 4(b), inserted at end ``The 
term includes any Indian housing authority.''
    Subsec. (b)(7). Pub. L. 100-358, Sec. 4(c), struck out ``, bands, 
groups, and Nations, including Alaska Indians, Aleuts, and Eskimos, of 
the United States'' after ``and Indian tribes''.
    Subsec. (b)(9) to (12). Pub. L. 100-358, Sec. 4(d)-(g), added pars. 
(9) to (12).
    1984--Subsec. (b)(2). Pub. L. 98-479, Sec. 102(b)(1), inserted 
provision at end that such ceilings shall be established in consultation 
with the Secretary of Agriculture for any rural area, as defined in 
section 1490 of this title, taking into account the subsidy 
characteristics and types of programs to which such ceilings apply.
    Subsec. (b)(4). Pub. L. 98-479, Sec. 102(b)(2), inserted ``, in 
consultation with the Secretary of Agriculture'' at end.
    Subsec. (b)(5)(C). Pub. L. 98-479, Sec. 102(b)(3), designated 
existing provision as cl. (i), added cl. (ii), and inserted ``the amount 
by which the aggregate of the following expenses of the family'' in 
provisions preceding cl. (i).
    1983--Subsec. (a). Pub. L. 98-181, Sec. 206(a), in provisions 
preceding par. (1), inserted provision requiring annual review of family 
income, and inserted ``(other than a family assisted under section 
1437f(o) of this title)''.
    Subsec. (b)(2). Pub. L. 98-181, Sec. 206(b), qualified the term 
``very low-income families'' in authorizing the Secretary to establish, 
where necessary, variations in income ceilings higher or lower than 50 
per centum of the median for the area.
    Subsec. (b)(3). Pub. L. 98-181, Sec. 202, inserted provision at end 
of par. (3) authorizing increase from 15 to 30 per centum in the single 
person occupancy limitation for nonoccupancy of the involved dwelling 
units.
    Subsec. (b)(5). Pub. L. 98-181, Sec. 206(c), amended par. (5) 
generally, substituting provisions designating cls. (A) to (D) for prior 
exclusion from ``adjusted income'' of such amounts or types of income as 
the Secretary might prescribe, taking into account the number of minor 
children and other appropriate factors.
    1981--Pub. L. 97-35 added subsecs. (a) and (c) and designated 
provisions constituting former section as subsec. (b), and in subsec. 
(b) as so designated, substituted provisions defining ``lower income 
housing'', ``lower income families'', ``families'', ``income'', 
``adjusted income'', ``public housing agency'', ``State'', and 
``Secretary'' for provisions defining ``low-income housing'', ``low-
income families'', ``development'', ``operation'', ``acquisition cost'', 
``public housing agency'', ``State'', ``Secretary'', and ``low-income 
housing project''.
    1979--Par. (1). Pub. L. 96-153 substituted provisions that the 
rental for a dwelling shall not exceed certain portion of the resident 
family's income to be established by the Secretary, and that in the case 
of a very low income family 25 per centum and in other cases 30 per 
centum of family income for provisions that such rental shall not exceed 
one-fourth of the family's income as defined by the Secretary.
    1978--Par. (2)(D). Pub. L. 95-557 substituted ``15 per cent'' for 
``10 per cent''.
    1976--Par. (2). Pub. L. 94-375 struck out ``and'' before cl. (C), 
added cl. (D), and two provisos relating to the percentage of units to 
be occupied by single persons and the priority to be given to single 
persons who are elderly, handicapped, or displaced, following cl. (D).


                    Effective Date of 1998 Amendment

    Amendment by title V of Pub. L. 105-276 effective and applicable 
beginning upon Oct. 1, 1999, except as otherwise provided, with 
provision that Secretary may implement amendment before such date, 
except to extent that such amendment provides otherwise, and with 
savings provision, see section 503 of Pub. L. 105-276, set out as a note 
under section 1437 of this title.
    Pub. L. 105-276, title V, Sec. 507(d), Oct. 21, 1998, 112 Stat. 
2526, provided that: ``The amendments under this section [amending this 
section] are made on, and shall apply beginning upon, the date of the 
enactment of this Act [Oct. 21, 1998].''
    Pub. L. 105-276, title V, Sec. 508(c)(2), Oct. 21, 1998, 112 Stat. 
2529, provided that: ``The amendments made by this paragraph [probably 
means this subsection, amending this section] are made on, and shall 
apply beginning upon, the date of the enactment of this Act [Oct. 21, 
1998].''
    Pub. L. 105-276, title V, Sec. 524(b), Oct. 21, 1998, 112 Stat. 
2568, provided that: ``The amendment made by this paragraph [probably 
means this section, amending this section] is made on, and shall apply 
beginning upon, the date of the enactment of this Act [Oct. 21, 1998].''


           Effective and Termination Dates of 1996 Amendments

    Pub. L. 105-276, title V, Sec. 514(f), Oct. 21, 1998, 112 Stat. 
2548, provided that: ``Section 402 of The Balanced Budget Downpayment 
Act, I [Pub. L. 104-99, see note below], and the amendments made by such 
section shall cease to be effective on the date of the enactment of this 
Act [Oct. 21, 1998]. Notwithstanding the inclusion in this Act [see 
Tables for classification] of any provision extending the effectiveness 
of such section or such amendments, such provision included in this Act 
shall not take effect.''
    Amendment by Pub. L. 104-330 effective Oct. 1, 1997, except as 
otherwise expressly provided, see section 107 of Pub. L. 104-330, set 
out as an Effective Date note under section 4101 of Title 25, Indians.
    Section 402(f) of Pub. L. 104-99, as amended by Pub. L. 104-204, 
title II, Sec. 201(c)(2), Sept. 26, 1996, 110 Stat. 2893; Pub. L. 105-
65, title II, Sec. 201(d)(2), Oct. 27, 1997, 111 Stat. 1364, provided 
that: ``This section [amending this section, sections 1437d to 1437f, 
1437n, 1437v, and 13615 of this title, and section 1701s of Title 12, 
Banks and Banking, enacting provisions set out as notes under this 
section and sections 1437 and 1437d of this title, and amending 
provisions set out as a note under section 1437f of this title] shall be 
effective upon the enactment of this Act [Jan. 26, 1996] and only for 
fiscal years 1996, 1997, and 1998.''


                    Effective Date of 1992 Amendment

    Section 103(a)(3) of title I of Pub. L. 102-550 provided that: ``To 
the extent that the amendments made by paragraphs (1) and (2) [amending 
this section] result in additional costs under this title [see Tables 
for classification], such amendments shall be effective only to the 
extent that amounts to cover such additional costs are provided in 
advance in appropriation Acts.''
    Amendment by subtitles B through F of title VI [Secs. 621-685] of 
Pub. L. 102-550 applicable upon expiration of 6-month period beginning 
Oct. 28, 1992, except as otherwise provided, see section 13642 of this 
title.


                    Effective Date of 1990 Amendment

    Section 573(f) of Pub. L. 101-625 provided that: ``The Secretary 
shall issue regulations implementing subsections (a) and (d) [sic] the 
amendments made by this section [amending this section] not later than 
the expiration of the 90-day period beginning on the date of the 
enactment of this Act [Nov. 28, 1990]. The regulations may not take 
effect until after September 30, 1991.''


                    Effective Date of 1988 Amendment

    Section 6 of Pub. L. 100-358 provided that: ``The Secretary of 
Housing and Urban Development may carry out programs to provide lower 
income housing on Indian reservations and other Indian areas only in 
accordance with the amendments made by this Act [enacting sections 
1437aa to 1437ee of this title, amending this section and section 1437c 
of this title, and enacting provisions set out as a note under section 
1437 of this title], commencing on whichever of the following occurs 
earlier:
        ``(1) Effective date of regulations.--The effective date of 
    regulations issued under section 205 of the United States Housing 
    Act of 1937 [former section 1437ee of this title].
        ``(2) 90 days.--The expiration of the 90-day period beginning on 
    the date of the enactment of this Act [June 29, 1988].''


                    Effective Date of 1981 Amendment

    Amendment by Pub. L. 97-35 effective Oct. 1, 1981, see section 371 
of Pub. L. 97-35, set out as an Effective Date note under section 3701 
of Title 12, Banks and Banking.


                    Effective Date of 1979 Amendment

    Section 202(c) of Pub. L. 96-153, which provided that amendment by 
section 202(a) of Pub. L. 96-153 (amending this section and section 
1437f of this title) shall become effective on Jan. 1, 1980, except that 
the amount of the tenant contribution required of families whose 
occupancy of housing units assisted under this chapter commenced prior 
to that date shall be determined in accordance with the provisions of 
this chapter in effect on Dec. 31, 1979, so long as such occupancy was 
continuous thereafter, was repealed by Pub. L. 97-35, title III, 
Sec. 322(h)(1), Aug. 13, 1981, 95 Stat. 404.


                    Effective Date of 1978 Amendment

    Amendment by Pub. L. 95-557 effective Oct. 1, 1978, see section 
206(h) of Pub. L. 95-557, set out as a note under section 1437c of this 
title.


                             Effective Date

    Section effective on such date or dates as the Secretary of Housing 
and Urban Development shall prescribe, but not later than eighteen 
months after Aug. 22, 1974, except that all of the provisions of par. 
(1) shall become effective on the same date, see section 201(b) of Pub. 
L. 93-383, set out as a note under section 1437 of this title.
    The Department of Housing and Urban Development adopted an interim 
rule, 24 CFR 860.409, Sept. 26, 1975, 40 F.R. 44326, which provided: 
``The effective date of section 3(1) of the United States Housing Act of 
1937, as amended [par. (1) of this section], shall be the date that 
these regulations [sections 860.401 to 860.409 of Title 24, CFR] are 
published in the Federal Register (September 26, 1975).''


                               Regulations

    Section 402(b)(2) of Pub. L. 104-99 provided that:
    ``(A) In general.--The Secretary shall, by regulation, after notice 
and an opportunity for public comment, establish such requirements as 
may be necessary to carry out section 3(a)(2)(A) of the United States 
Housing Act of 1937 [42 U.S.C. 1437a(a)(2)(A)], as amended by paragraph 
(1).
    ``(B) Transition rule.--Prior to the issuance of final regulations 
under paragraph (1), a public housing agency may implement ceiling 
rents, which shall be not less than the monthly costs to operate the 
housing of the agency and--
        ``(i) determined in accordance with section 3(a)(2)(A) of the 
    United States Housing Act of 1937, as that section existed on the 
    day before enactment of this Act [Jan. 26, 1996];
        ``(ii) equal to the 95th percentile of the rent paid for a unit 
    of comparable size by tenants in the same public housing project or 
    a group of comparable projects totaling 50 units or more; or
        ``(iii) equal to the fair market rent for the area in which the 
    unit is located.''
    [Section 402(b)(2) of Pub. L. 104-99, set out above, effective Jan. 
26, 1996, and only for fiscal years 1996, 1997, and 1998, and to cease 
to be effective Oct. 21, 1998, see Effective and Termination Dates of 
1996 Amendments notes above.]
    Section 191 of title I of Pub. L. 102-550 provided that: ``The 
Secretary of Housing and Urban Development shall issue any final 
regulations necessary to implement the provisions of this title [see 
Tables for classification] and the amendments made by this title not 
later than the expiration of the 180-day period beginning on the date of 
the enactment of this Act [Oct. 28, 1992], except as expressly provided 
otherwise in this title and the amendments made by this title. Such 
regulations shall be issued after notice and opportunity for public 
comment pursuant to the provisions of section 553 of title 5, United 
States Code (notwithstanding subsections (a)(2), (b)(B), and (d)(3) of 
such section).''


                            Savings Provision

    Pub. L. 105-276, title V, Sec. 508(b)(2), Oct. 21, 1998, 112 Stat. 
2528, provided that: ``Notwithstanding the amendment made by paragraph 
(1) [amending this section], the provisions of the undesignated 
paragraph at the end of section 3(c)(3) of the United States Housing Act 
of 1937 [see 1998 and 1992 Amendment notes above], as such section was 
in effect immediately before the enactment of this Act [Oct. 21, 1998], 
shall continue to apply until the effective date under section 503 of 
this Act [set out as a note under section 1437 of this title]. 
Notwithstanding the amendment made by subsection (a) of this section 
[amending this section], nor the applicability under section 402(f) of 
The Balanced Budget Downpayment Act, I [Pub. L. 104-99] (42 U.S.C. 1437a 
note) of the amendments made by such section 402 [see Effective and 
Termination Dates of 1996 Amendments note set out above], nor any repeal 
of such section 402(f), the provisions of section 3(b)(5)(G) of the 
United States Housing Act of 1937 (42 U.S.C. 1437a(b)(5)(G)), as such 
section was in effect immediately before the date of the enactment of 
this Act, shall continue to apply until the effective date under section 
503 of this Act.''

          Termination of Trust Territory of the Pacific Islands

    For termination of Trust Territory of the Pacific Islands, see note 
set out preceding section 1681 of Title 48, Territories and Insular 
Possessions.


                       Transitional Ceiling Rents

    Pub. L. 105-276, title V, Sec. 519(d), Oct. 21, 1998, 112 Stat. 
2561, provided that: ``Notwithstanding section 3(a)(1) of the United 
States Housing Act of 1937 (42 U.S.C. 1437a[(a)](1)), during the period 
ending upon the later of the implementation of the formulas established 
pursuant to subsections (d)(2) and (e)(2) of [section 9 of] such Act [42 
U.S.C. 1437g(d)(2), (e)(2)] (as amended by this section) and October 1, 
1999, a public housing agency may take any of the following actions with 
respect to public housing:
        ``(1) New provisions.--An agency may--
            ``(A) adopt and apply ceiling rents that reflect the 
        reasonable market value of the housing, but that are not less 
        than--
                ``(i) for housing other than housing predominantly for 
            elderly or disabled families (or both), 75 percent of the 
            monthly cost to operate the housing of the agency;
                ``(ii) for housing predominantly for elderly or disabled 
            families (or both), 100 percent of the monthly cost to 
            operate the housing of the agency; and
                ``(iii) the monthly cost to make a deposit to a 
            replacement reserve (in the sole discretion of the public 
            housing agency); and
            ``(B) allow families to pay ceiling rents referred to in 
        subparagraph (A), unless, with respect to any family, the 
        ceiling rent established under this paragraph would exceed the 
        amount payable as rent by that family under paragraph (1).
        ``(2) Ceiling rents from balanced budget act, I.--An agency may 
    utilize the authority under section 3(a)(2) of the United States 
    Housing Act of 1937 (42 U.S.C. 1437a(a)(2)), as in effect 
    immediately before the enactment of this Act [Oct. 21, 1998], 
    notwithstanding any amendment to such section made by this Act.
        ``(3) Transitional ceiling rents for balanced budget act, I.--An 
    agency may utilize the authority with respect to ceiling rents under 
    section 402(b)(2) of The Balanced Budget Downpayment Act, I [Pub. L. 
    104-99] (42 U.S.C. 1437a note), notwithstanding any other provision 
    of law (including the expiration of the applicability of such 
    section or the repeal of such section).''


  Certain Payments Made to Victims of Nazi Persecution Disregarded in 
   Determining Eligibility for and Amount of Need-Based Benefits and 
                                Services

    Pub. L. 103-286, Sec. 1, Aug. 1, 1994, 108 Stat. 1450, provided 
that:
    ``(a) In General.--Payments made to individuals because of their 
status as victims of Nazi persecution shall be disregarded in 
determining eligibility for and the amount of benefits or services to be 
provided under any Federal or federally assisted program which provides 
benefits or services based, in whole or in part, on need.
    ``(b) Applicability.--Subsection (a) shall apply to determinations 
made on or after the date of the enactment of this Act [Aug. 1, 1994] 
with respect to payments referred to in subsection (a) made before, on, 
or after such date.
    ``(c) Prohibition Against Recovery of Value of Excessive Benefits or 
Services Provided Due to Failure to Take Account of Certain Payments 
Made to Victims of Nazi Persecution.--No officer, agency, or 
instrumentality of any government may attempt to recover the value of 
excessive benefits or services provided before the date of the enactment 
of this Act [Aug. 1, 1994] under any program referred to in subsection 
(a) by reason of any failure to take account of payments referred to in 
subsection (a).
    ``(d) Notice to Individuals Who May Have Been Denied Eligibility for 
Benefits or Services Due to the Failure to Disregard Certain Payments 
Made to Victims of Nazi Persecution.--Any agency of government that has 
not disregarded payments referred to in subsection (a) in determining 
eligibility for a program referred to in subsection (a) shall make a 
good faith effort to notify any individual who may have been denied 
eligibility for benefits or services under the program of the potential 
eligibility of the individual for such benefits or services.
    ``(e) Repayment of Additional Rent Paid Under HUD Housing Programs 
Because of Failure to Disregard Reparation Payments.--
        ``(1) Authority.--To the extent that amounts are provided in 
    appropriation Acts for payments under this subsection, the Secretary 
    of Housing and Urban Development shall make payments to qualified 
    individuals in the amount determined under paragraph (3).
        ``(2) Qualified individuals.--For purposes of this subsection, 
    the term `qualified individual' means an individual who--
            ``(A) has received any payment because of the individual's 
        status as a victim of Nazi persecution;
            ``(B) at any time during the period beginning on February 1, 
        1993 and ending on April 30, 1993, resided in a dwelling unit in 
        housing assisted under any program for housing assistance of the 
        Department of Housing and Urban Development under which rent 
        payments for the unit were determined based on or taking into 
        consideration the income of the occupant of the unit;
            ``(C) paid rent for such dwelling unit for any portion of 
        the period referred to in subparagraph (B) in an amount 
        determined in a manner that did not disregard the payment 
        referred to in subparagraph (A); and
            ``(D) has submitted a claim for payment under this 
        subsection as required under paragraph (4).
    The term does not include the successors, heirs, or estate of an 
    individual meeting the requirements of the preceding sentence.
        ``(3) Amount of payment.--The amount of a payment under this 
    subsection for a qualified individual shall be equal to the 
    difference between--
            ``(A) the sum of the amount of rent paid by the individual 
        for rental of the dwelling unit of the individual assisted under 
        a program for housing assistance of the Department of Housing 
        and Urban Development, for the period referred to in paragraph 
        (2)(B), and
            ``(B) the sum of the amount of rent that would have been 
        payable by the individual for rental of such dwelling unit for 
        such period if the payments referred to in paragraph (2)(A) were 
        disregarded in determining the amount of rent payable by the 
        individual for such period.
        ``(4) Submission of claims.--A payment under this subsection for 
    an individual may be made only pursuant to a written claim for such 
    payment by such individual submitted to the Secretary of Housing and 
    Urban Development in the form and manner required by the Secretary 
    before--
            ``(A) in the case of any individual notified by the 
        Department of Housing and Urban Development orally or in writing 
        that such specific individual is eligible for a payment under 
        this subsection, the expiration of the 6-month period beginning 
        on the date of receipt of such notice; and
            ``(B) in the case of any other individual, the expiration of 
        the 12-month period beginning on the date of the enactment of 
        this Act [Aug. 1, 1994].''


   Inapplicability of Certain 1992 Amendments to Indian Public Housing

    Section 626 of Pub. L. 102-550 provided that: ``The amendments made 
by this subtitle [subtitle B (Secs. 621-626) of title VI of Pub. L. 102-
550, amending this section and sections 1437c to 1437f, 1437l, 1437o, 
1438, and 8013 of this title] shall not apply with respect to lower 
income housing developed or operated pursuant to a contract between the 
Secretary of Housing and Urban Development and an Indian housing 
authority.''


                            Budget Compliance

    Section 573(e) of Pub. L. 101-625 provided that: ``The amendments 
made by subsections (b) and (c) [amending this section] shall apply only 
to the extent approved in appropriations Acts.''


                           Median Area Income

    Section 567 of Pub. L. 100-242 provided that: ``For purposes of 
calculating the median income for any area that is not within a 
metropolitan statistical area (as established by the Office of 
Management and Budget) for programs under title I of the Housing and 
Community Development Act of 1974 [42 U.S.C. 5301 et seq.], the United 
States Housing Act of 1937 [42 U.S.C. 1437 et seq.], the National 
Housing Act [12 U.S.C. 1701 et seq.], or title V of the Housing Act of 
1949 [42 U.S.C. 1471 et seq.], the Secretary of Housing and Urban 
Development or the Secretary of Agriculture (as appropriate) shall use 
whichever of the following is higher:
        ``(1) the median income of the county in which the area is 
    located; or
        ``(2) the median income of the entire nonmetropolitan area of 
    the State.''


  Determination of Rent Payable by Tenants Occupying Assisted Housing; 
   Delayed Application or Staged Implementation of Amended Provisions

    Section 206(d) of Pub. L. 98-181 provided that:
    ``(1) The following provisions of this paragraph apply to 
determinations of the rent to be paid by or the contribution required of 
a tenant occupying housing assisted under the authorities amended by 
this section [amending this section] or subsections (a) through (h) of 
section 322 of the Housing and Community Development Amendments of 1981 
[amending sections 1437 to 1437d, 1437f, 1437g, 1437i, 1437j, and 1437l 
of this title and sections 1701s and 1715z-1 of Title 12, Banks and 
Banking, and repealing provisions set out as notes under this section 
and section 1701s of Title 12] (hereinafter referred to as `assisted 
housing') on or before the effective date of regulations implementing 
this section:
        ``(A) Notwithstanding any other provision of this section or 
    subsections (a) through (h) of section 322 of the Housing and 
    Community Development Amendments of 1981, the Secretary of Housing 
    and Urban Development (hereinafter referred to as the 'Secretary') 
    may provide for delayed applicability, or for staged implementation, 
    of the procedures for determining rents or contributions, as 
    appropriate, required by such provisions if the Secretary determines 
    that immediate application of such procedures would be 
    impracticable, would violate the terms of existing leases, or would 
    result in extraordinary hardship for any class of tenants.
        ``(B) The Secretary shall provide that the rent or contribution, 
    as appropriate, required to be paid by a tenant shall not increase 
    as a result of the amendments made by this section and subsections 
    (a) through (h) of section 322 of the Housing and Community 
    Development Amendments of 1981, and as a result of any other 
    provision of Federal law or regulation, by more than 10 per centum 
    during any twelve-month period, unless the increase above 10 per 
    centum is attributable to increases in income which are unrelated to 
    such amendments, law, or regulation.
    ``(2) Tenants of assisted housing other than those referred to in 
paragraph (1) shall be subject to immediate rent payment or contribution 
determinations in accordance with applicable law and without regard to 
the provisions of paragraph (1), but the Secretary shall provide that 
the rent or contribution payable by any such tenant who is occupying 
assisted housing on the effective date of any provision of Federal law 
or regulation shall not increase, as a result of any such provision of 
Federal law or regulation, by more than 10 per centum during any twelve-
month period, unless the increase above 10 per centum is attributable to 
increases in income which are unrelated to such law or regulation.
    ``(3) In the case of tenants receiving rental assistance under 
section 521(a)(1) of the Housing Act of 1949 [section 1490a(a)(1) of 
this title] on the effective date of this section [Nov. 30, 1983] whose 
assistance is converted to assistance under section 8 of the United 
States Housing Act of 1937 [section 1437f of this title] on or after 
such date, the Secretary shall provide that the rent or contribution 
payable by any such tenant shall not increase, as a result of such 
conversion, by more than 10 per centum during any twelve-month period, 
unless the increase above 10 per centum is attributable to increases in 
income which are unrelated to such conversion or to any provision of 
Federal law or regulation.
    ``(4)(A) Notwithstanding any other provision of law, in the case of 
the conversion of any assistance under section 101 of the Housing and 
Urban Development Act of 1965 [12 U.S.C. 1701s], section 236(f)(2) of 
the National Housing Act [12 U.S.C. 1715z-1(f)(2)], or section 23 of the 
United States Housing Act of 1937 [section 1421b of this title] (as in 
effect before the date of the enactment of the Housing and Community 
Development Act of 1974 [Aug. 22, 1974]) to assistance under section 8 
of the United States Housing Act of 1937, any increase in rent payments 
or contributions resulting from such conversion, and from the amendments 
made by this section of any tenant benefiting from such assistance who 
is sixty-two years of age or older may not exceed 10 per centum per 
annum.
    ``(B) In the case of any such conversion of assistance occurring on 
or after October 1, 1981, and before the date of the enactment of this 
section [Nov. 30, 1983], the rental payments due after such date of 
enactment by any tenant benefiting from such assistance who was sixty-
two years of age or older on the date of such conversion shall be 
computed as if the tenant's rental payment or contribution had, on the 
date of conversion, been the lesser of the actual rental payment or 
contribution required, or 25 per centum of the tenant's income.
    ``(5) The limitations on increases in rent contained in paragraphs 
(1)(B), (2), (3), and (4) shall remain in effect and may not be changed 
or superseded except by another provision of law which amends this 
subsection.
    ``(6) As used in this subsection, the term `contribution' means an 
amount representing 30 per centum of a tenant's monthly adjusted income, 
10 per centum of the tenant's monthly income, or the designated amount 
of welfare assistance, whichever amount is used to determine the monthly 
assistance payment for the tenant under section 3(a) of the United 
States Housing Act of 1937 [subsec. (a) of this section].
    ``(7) The provisions of subsections (a) through (h) of section 322 
of the Housing and Community Development Amendments of 1981 shall be 
implemented and fully applicable to all affected tenants no later than 
five years following the date of enactment of such amendments [Aug. 13, 
1981], except that the Secretary may extend the time for implementation 
if the Secretary determines that full implementation would result in 
extraordinary hardship for any class of tenants.''
    Prior provisions for determining rent payable by tenants occupying 
assisted housing under and authorizing delayed application or staged 
implementation of provisions amended by section 322 of Pub. L. 97-35 
were contained in Pub. L. 97-35, title III, Sec. 322(i), Aug. 13, 1981, 
95 Stat. 404, which was repealed by Pub. L. 98-181, title II, 
Sec. 206(e), Nov. 30, 1983, 97 Stat. 1181.


 Establishment of Increased Monthly Rental Charge for Family Occupying 
               Low-Income Housing Unit; Adjustment Factors

    Section 202 of Pub. L. 93-383 provided that: ``To the extent that 
section 3(1) of the United States Housing Act of 1937, as amended by 
section 201(a) of this Act [par. (1) of this section], would require the 
establishment of an increased monthly rental charge for any family which 
occupies a low-income housing unit as of the effective date of such 
section 3(1) (other than by reason of the provisions relating to welfare 
assistance payments) [see Effective Date note set out above], the 
required adjustment shall be made, in accordance with regulations of the 
Secretary, as follows: (A) the first adjustment shall not exceed $5 and 
shall become effective as of the month following the month of the first 
review of the family's income pursuant to section 6(c)(2) of such Act 
[section 1437d(c)(2) of this title] which occurs at least six months 
after the effective date of such section 3(1), and (B) subsequent 
adjustments, each of which shall not exceed $5, shall be made at six-
month intervals over whatever period is necessary to effect the full 
required increase in the family's rental charge.''

                  Section Referred to in Other Sections

    This section is referred to in sections 254b, 503, 1436a, 1437f, 
1437j, 1437r, 1437s, 1437z-3, 1437z-7, 1437aaa-3, 1437bbb-4, 1471, 1486, 
3544, 4851b, 5305, 8011, 8012, 8013, 9907, 11386, 11395, 11403e-2, 
11403g, 12704, 12876, 12896, 12899d, 12899f, 12910, 13617, 13641, 13661, 
13664 of this title; title 12 sections 1441a, 1701q, 1701u, 1701z-11, 
1715z-1a, 1715z-1c, 1715z-9, 1715z-15, 1831q, 4119, 4125; title 20 
section 1070a-22.
