
From the U.S. Code Online via GPO Access
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[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC1437d]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                      CHAPTER 8--LOW-INCOME HOUSING
 
            SUBCHAPTER I--GENERAL PROGRAM OF ASSISTED HOUSING
 
Sec. 1437d. Contract provisions and requirements; loans and 
        annual contributions
        

(a) Conditions; elevators

    The Secretary may include in any contract for loans, contributions, 
sale, lease, mortgage, or any other agreement or instrument made 
pursuant to this chapter, such covenants, conditions, or provisions as 
he may deem necessary in order to insure the lower income character of 
the project involved, in a manner consistent with the public housing 
agency plan. Any such contract shall require that, except in the case of 
housing predominantly for elderly or disabled families, high-rise 
elevator projects shall not be provided for families with children 
unless the Secretary makes a determination that there is no practical 
alternative.

(b) Limitation on development costs

    (1) Each contract for loans (other than preliminary loans) or 
contributions for the development, acquisition, or operation of public 
housing shall provide that the total development cost of the project on 
which the computation of any annual contributions under this chapter may 
be based may not exceed the amount determined under paragraph (2) (for 
the appropriate structure type) unless the Secretary provides otherwise, 
and in any case may not exceed 110 per centum of such amount unless the 
Secretary for good cause determines otherwise.
    (2) For purposes of paragraph (1), the Secretary shall determine the 
total development cost by multiplying the construction cost guideline 
for the project (which shall be determined by averaging the current 
construction costs, as listed by not less than 2 nationally recognized 
residential construction cost indices, for publicly bid construction of 
a good and sound quality) by--
        (A) in the case of elevator type structures, 1.6; and
        (B) in the case of nonelevator type structures, 1.75.

    (3) In calculating the total development cost of a project under 
paragraph (2), the Secretary shall consider only capital assistance 
provided by the Secretary to a public housing agency that are \1\ 
authorized for use in connection with the development of public housing, 
and shall exclude all other amounts, including amounts provided under--
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    \1\ So in original. Probably should be ``is''.
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        (A) the HOME investment partnerships program authorized under 
    title II of the Cranston-Gonzalez National Affordable Housing Act 
    [42 U.S.C. 12721 et seq.]; or
        (B) the community development block grants program under title I 
    of the Housing and Community Development Act of 1974 [42 U.S.C. 5301 
    et seq.].

    (4) The Secretary may restrict the amount of capital funds that a 
public housing agency may use to pay for housing construction costs. For 
purposes of this paragraph, housing construction costs include the 
actual hard costs for the construction of units, builders' overhead and 
profit, utilities from the street, and finish landscaping.

(c) Revision of maximum income limits; certification of compliance with 
        requirements; notification of eligibility; informal hearing; 
        compliance with procedures for sound management

    Every contract for contributions shall provide that--
        (1) the Secretary may require the public housing agency to 
    review and revise its maximum income limits if the Secretary 
    determines that changed conditions in the locality make such 
    revision necessary in achieving the purposes of this chapter;
        (2) the public housing agency shall determine, and so certify to 
    the Secretary, that each family in the project was admitted in 
    accordance with duly adopted regulations and approved income limits; 
    and the public housing agency shall review the incomes of families 
    living in the project no less frequently than annually;
        (3) the public housing agency shall promptly notify (i) any 
    applicant determined to be ineligible for admission to the project 
    of the basis for such determination and provide the applicant upon 
    request, within a reasonable time after the determination is made, 
    with an opportunity for an informal hearing on such determination, 
    and (ii) any applicant determined to be eligible for admission to 
    the project of the approximate date of occupancy insofar as such 
    date can be reasonably determined; and
        (4) the public housing agency shall comply with such procedures 
    and requirements as the Secretary may prescribe to assure that sound 
    management practices will be followed in the operation of the 
    project, including requirements pertaining to--
            (A) making dwelling units in public housing available for 
        occupancy, which shall provide that the public housing agency 
        may establish a system for making dwelling units available that 
        provides preference for such occupancy to families having 
        certain characteristics; each system of preferences established 
        pursuant to this subparagraph shall be based upon local housing 
        needs and priorities, as determined by the public housing agency 
        using generally accepted data sources, including any information 
        obtained pursuant to an opportunity for public comment as 
        provided under section 1437c-1(f) of this title and under the 
        requirements applicable to the comprehensive housing 
        affordability strategy for the relevant jurisdiction;
            (B) the establishment of satisfactory procedures designed to 
        assure the prompt payment and collection of rents and the prompt 
        processing of evictions in the case of nonpayment of rent;
            (C) the establishment of effective tenant-management 
        relationships designed to assure that satisfactory standards of 
        tenant security and project maintenance are formulated and that 
        the public housing agency (together with tenant councils where 
        they exist) enforces those standards fully and effectively;
            (D) the development by local housing authority managements 
        of viable homeownership opportunity programs for low-income 
        families capable of assuming the responsibilities of 
        homeownership;
            (E) for each agency that receives assistance under this 
        subchapter, the establishment and maintenance of a system of 
        accounting for rental collections and costs (including 
        administrative, utility, maintenance, repair and other operating 
        costs) for each project or operating cost center (as determined 
        by the Secretary), which collections and costs shall be made 
        available to the general public and submitted to the appropriate 
        local public official (as determined by the Secretary); except 
        that the Secretary may permit agencies owning or operating less 
        than 500 units to comply with the requirements of this 
        subparagraph by accounting on an agency-wide basis; and
            (F) requiring the public housing agency to ensure and 
        maintain compliance with subtitle C of title VI of the Housing 
        and Community Development Act of 1992 [42 U.S.C. 13601 et seq.] 
        and any regulations issued under such subtitle.

(d) Exemption from personal and real property taxes; payments in lieu of 
        taxes; cash contribution or tax remission

    Every contract for contributions with respect to a low-income 
housing project shall provide that no contributions by the Secretary 
shall be made available for such project unless such project (exclusive 
of any portion thereof which is not assisted by contributions under this 
chapter) is exempt from all real and personal property taxes levied or 
imposed by the State, city, county, or other political subdivision; and 
such contract shall require the public housing agency to make payments 
in lieu of taxes equal to 10 per centum of the sum of the shelter rents 
charged in such project, or such lesser amount as (i) is prescribed by 
State law, or (ii) is agreed to by the local governing body in its 
agreement for local cooperation with the public housing agency required 
under section 1437c(e)(2) of this title, or (iii) is due to failure of a 
local public body or bodies other than the public housing agency to 
perform any obligation under such agreement. If any such project is not 
exempt from all real and personal property taxes levied or imposed by 
the State, city, county, or other political subdivision, such contract 
shall provide, in lieu of the requirement for tax exemption and payments 
in lieu of taxes, that no contributions by the Secretary shall be made 
available for such project unless and until the State, city, county, or 
other political subdivision in which such project is situated shall 
contribute, in the form of cash or tax remission, the amount by which 
the taxes paid with respect to the project exceed 10 per centum of the 
shelter rents charged in such project.

(e) Repealed. Pub. L. 105-276, title V, Sec. 529(2), Oct. 21, 1998, 112 
        Stat. 2569

(f) Housing quality requirements

                           (1) In general

        Each contract for contributions for a public housing agency 
    shall require that the agency maintain its public housing in a 
    condition that complies with standards which meet or exceed the 
    housing quality standards established under paragraph (2).

                        (2) Federal standards

        The Secretary shall establish housing quality standards under 
    this paragraph that ensure that public housing dwelling units are 
    safe and habitable. Such standards shall include requirements 
    relating to habitability, including maintenance, health and 
    sanitation factors, condition, and construction of dwellings, and 
    shall, to the greatest extent practicable, be consistent with the 
    standards established under section 1437f(o)(8)(B)(i) of this title. 
    The Secretary may determine whether the laws, regulations, 
    standards, or codes of any State or local jurisdiction meet or 
    exceed these standards, for purposes of this subsection.

                       (3) Annual inspections

        Each public housing agency that owns or operates public housing 
    shall make an annual inspection of each public housing project to 
    determine whether units in the project are maintained in accordance 
    with the requirements under paragraph (1). The agency shall retain 
    the results of such inspections and, upon the request of the 
    Secretary, the Inspector General for the Department of Housing and 
    Urban Development, or any auditor conducting an audit under section 
    1437c(h) of this title, shall make such results available.

(g) Substantial default; conveyance of title and delivery of possession; 
        reconveyance and redelivery; payments for outstanding 
        obligations

    Every contract for contributions (including contracts which amend or 
supersede contracts previously made) may provide that--
        (1) upon the occurrence of a substantial default in respect to 
    the covenants or conditions to which the public housing agency is 
    subject (as such substantial default shall be defined in such 
    contract), the public housing agency shall be obligated at the 
    option of the Secretary either to convey title in any case where, in 
    the determination of the Secretary (which determination shall be 
    final and conclusive), such conveyance of title is necessary to 
    achieve the purposes of this chapter, or to deliver to the Secretary 
    possession of the project, as then constituted, to which such 
    contract relates; and
        (2) the Secretary shall be obligated to reconvey or redeliver 
    possession of the project as constituted at the time of reconveyance 
    or redelivery, to such public housing agency or to its successor (if 
    such public housing agency or a successor exists) upon such terms as 
    shall be prescribed in such contract, and as soon as practicable (i) 
    after the Secretary is satisfied that all defaults with respect to 
    the project have been cured, and that the project will, in order to 
    fulfill the purposes of this chapter, thereafter be operated in 
    accordance with the terms of such contract; or (ii) after the 
    termination of the obligation to make annual contributions available 
    unless there are any obligations or covenants of the public housing 
    agency to the Secretary which are then in default. Any prior 
    conveyances and reconveyances or deliveries and redeliveries of 
    possession shall not exhaust the right to require a conveyance or 
    delivery of possession of the project to the Secretary pursuant to 
    subparagraph (1) upon the subsequent occurrence of a substantial 
    default.

Whenever such a contract for annual contributions includes provisions 
which the Secretary in such contract determines are in accordance with 
this subsection, and the portion of the annual contribution payable for 
debt service requirements pursuant to such contract has been pledged by 
the public housing agency as security for the payment of the principal 
and interest on any of its obligations, the Secretary (notwithstanding 
any other provisions of this chapter) shall continue to make such annual 
contributions available for the project so long as any of such 
obligations remain outstanding, and may covenant in such contract that 
in any event such annual contributions shall in each year be at least 
equal to an amount which, together with such income or other funds as 
are actually available from the project for the purpose at the time such 
annual contribution is made, will suffice for the payment of all 
installments, falling due within the next succeeding twelve months, of 
principal and interest on the obligations for which the annual 
contributions provided for in the contract shall have been pledged as 
security. In no case shall such annual contributions be in excess of the 
maximum sum specified in the contract involved, nor for longer than the 
remainder of the maximum period fixed by the contract.

(h) New construction contracts

    On or after October 1, 1983, the Secretary may enter into a contract 
involving new construction only if the public housing agency 
demonstrates to the satisfaction of the Secretary that the cost of new 
construction in the neighborhood where the public housing agency 
determines the housing is needed is less than the cost of acquisition or 
acquisition and rehabilitation in such neighborhood, including any 
reserve fund under subsection (i) of this section, would be.

(i) Reserve fund; major repairs

    The Secretary may, upon application by a public housing agency in 
connection with the acquisition of housing for use as public housing, 
establish and set aside a reserve fund in an amount not to exceed 30 per 
centum of the acquisition cost which shall be available for use for 
major repairs to such housing.

(j) Performance indicators for public housing agencies

    (1) The Secretary shall develop and publish in the Federal Register 
indicators to assess the management performance of public housing 
agencies and resident management corporations. The indicators shall be 
established by rule under section 553 of title 5. Such indicators shall 
enable the Secretary to evaluate the performance of public housing 
agencies and resident management corporations in all major areas of 
management operations. The Secretary shall, in particular, use the 
following indicators for public housing agencies, to the extent 
practicable:
        (A) The number and percentage of vacancies within an agency's 
    inventory, including the progress that an agency has made within the 
    previous 3 years to reduce such vacancies.
        (B) The amount and percentage of funds provided to the public 
    housing agency from the Capital Fund under section 1437g(d) of this 
    title which remain unobligated by the public housing agency after 3 
    years.
        (C) The percentage of rents uncollected.
        (D) The utility consumption (with appropriate adjustments to 
    reflect different regions and unit sizes).
        (E) The average period of time that an agency requires to repair 
    and turn-around vacant units.
        (F) The proportion of maintenance work orders outstanding, 
    including any progress that an agency has made during the preceding 
    3 years to reduce the period of time required to complete 
    maintenance work orders.
        (G) The percentage of units that an agency fails to inspect to 
    ascertain maintenance or modernization needs within such period of 
    time as the Secretary deems appropriate (with appropriate 
    adjustments, if any, for large and small agencies).
        (H) The extent to which the public housing agency--
            (i) coordinates, promotes, or provides effective programs 
        and activities to promote the economic self-sufficiency of 
        public housing residents; and
            (ii) provides public housing residents with opportunities 
        for involvement in the administration of the public housing.

        (I) \2\ The extent to which the public housing agency--
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    \2\ Another subpar. (I) is set out after subpar. (K).
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            (i) implements effective screening and eviction policies and 
        other anticrime strategies; and
            (ii) coordinates with local government officials and 
        residents in the project and implementation of such strategies.

        (J) The extent to which the public housing agency is providing 
    acceptable basic housing conditions.
        (K) Any other factors as the Secretary deems appropriate which 
    shall not exceed the seven factors in the statute, plus an 
    additional five.
        (I) \3\ The Secretary shall:
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    \3\ Another subpar. (I) is set out before subpar. (J).
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            (1) administer the system of evaluating public housing 
        agencies flexibly to ensure that such agencies are not penalized 
        as result of circumstances beyond their control;
            (2) reflect in the weights assigned to the various 
        indicators the differences in the difficulty of managing 
        individual projects that result from their physical condition 
        and their neighborhood environment; and
            (3) determine a public housing agency's status as ``troubled 
        with respect to the program under section 1437l \4\ of this 
        title'' based upon factors solely related to its ability to 
        carry out that program.
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    \4\ See References in Text note below.

    (2)(A)(i) The Secretary shall, under the rulemaking procedures under 
section 553 of title 5, establish procedures for designating troubled 
public housing agencies, which procedures shall include identification 
of serious and substantial failure to perform as measured by the 
performance indicators specified under paragraph (1) and such other 
factors as the Secretary may deem to be appropriate. Such procedures 
shall provide that an agency that fails on a widespread basis to provide 
acceptable basic housing conditions for its residents shall be 
designated as a troubled public housing agency. The Secretary may use a 
simplified set of indicators for public housing agencies with less than 
250 public housing units. The Secretary shall also designate, by rule 
under section 553 of title 5, agencies that are troubled with respect to 
the program for assistance from the Capital Fund under section 1437g(d) 
of this title.
    (ii) The Secretary may also, in consultation with national 
organizations representing public housing agencies and public officials 
(as the Secretary determines appropriate), identify and commend public 
housing agencies that meet the performance standards established under 
paragraph (1) in an exemplary manner.
    (iii) The Secretary shall establish procedures for public housing 
agencies to appeal designation as a troubled agency (including 
designation as a troubled agency for purposes of the program for 
assistance from the Capital Fund under section 1437g(d) of this title), 
to petition for removal of such designation, and to appeal any refusal 
to remove such designation.
    (B)(i) Upon designating a public housing agency with more than 250 
units as troubled pursuant to subparagraph (A) and determining that an 
assessment under this subparagraph will not duplicate any comparable and 
recent review, the Secretary shall provide for an on-site, independent 
assessment of the management of the agency.
    (ii) To the extent the Secretary deems appropriate (taking into 
account an agency's performance under the indicators specified under 
paragraph (1)), the assessment team shall also consider issues relating 
to the agency's resident population and physical inventory, including 
the extent to which (I) the agency's comprehensive plan prepared 
pursuant to section 1437l \4\ of this title adequately and appropriately 
addresses the rehabilitation needs of the agency's inventory, (II) 
residents of the agency are involved in and informed of significant 
management decisions, and (III) any projects in the agency's inventory 
are severely distressed and eligible for assistance pursuant to section 
1437v of this title.
    (iii) An independent assessment under this subparagraph shall be 
carried out by a team of knowledgeable individuals selected by the 
Secretary (referred to in this section as the ``assessment team'') with 
expertise in public housing and real estate management. In conducting an 
assessment, the assessment team shall consult with the residents and 
with public and private entities in the jurisdiction in which the public 
housing is located. The assessment team shall provide to the Secretary 
and the public housing agency a written report, which shall contain, at 
a minimum, recommendations for such management improvements as are 
necessary to eliminate or substantially remedy existing deficiencies.
    (C) The Secretary shall seek to enter into an agreement with each 
troubled public housing agency, after reviewing the report submitted 
pursuant to subparagraph (B) (if applicable) and consulting with the 
agency's assessment team. Such agreement shall set forth--
        (i) targets for improving performance as measured by the 
    performance indicators specified under paragraph (1) and other 
    requirements within a specified period of time;
        (ii) strategies for meeting such targets, including a 
    description of the technical assistance that the Secretary will make 
    available to the agency; and
        (iii) incentives or sanctions for effective implementation of 
    such strategies, which may include any constraints on the use of 
    funds that the Secretary determines are appropriate.

To the extent the Secretary deems appropriate (taking into account an 
agency's performance under the indicators specified under paragraph 
(1)), such agreement shall also set forth a plan for enhancing resident 
involvement in the management of the public housing agency. The 
Secretary and the public housing agency shall, to the maximum extent 
practicable, seek the assistance of local public and private entities in 
carrying out the agreement.
    (D) The Secretary shall apply the provisions of this paragraph to 
resident management corporations as well as public housing agencies.
    (3)(A) Notwithstanding any other provision of law or of any contract 
for contributions, upon the occurrence of events or conditions that 
constitute a substantial default by a public housing agency with respect 
to the covenants or conditions to which the public housing agency is 
subject or an agreement entered into under paragraph (2), the Secretary 
may--
        (i) solicit competitive proposals from other public housing 
    agencies and private housing management agents which (I) in the 
    discretion of the Secretary, may be selected by existing public 
    housing residents through administrative procedures established by 
    the Secretary, and (II) if appropriate, shall provide for such 
    agents to manage all, or part, of the housing administered by the 
    public housing agency or all or part of the other programs of the 
    agency;
        (ii) petition for the appointment of a receiver (which may be 
    another public housing agency or a private management corporation) 
    of the public housing agency to any district court of the United 
    States or to any court of the State in which the real property of 
    the public housing agency is situated, that is authorized to appoint 
    a receiver for the purposes and having the powers prescribed in this 
    subsection;
        (iii) solicit competitive proposals from other public housing 
    agencies and private entities with experience in construction 
    management in the eventuality that such agencies or firms may be 
    needed to oversee implementation of assistance made available from 
    the Capital Fund under section 1437g(d) of this title for the 
    housing; and \5\
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    \5\ So in original. The word ``and'' probably should not appear.
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        (iv) take possession of all or part of the public housing 
    agency, including all or part of any project or program of the 
    agency, including any project or program under any other provision 
    of this subchapter; and
        (v) require the agency to make other arrangements acceptable to 
    the Secretary and in the best interests of the public housing 
    residents and families assisted under section 1437f of this title 
    for managing all, or part, of the public housing administered by the 
    agency or of the programs of the agency.

Residents of a public housing agency designated as troubled pursuant to 
paragraph (2)(A) may petition the Secretary in writing to take 1 or more 
of the actions referred to in this subparagraph. The Secretary shall 
respond to such petitions in a timely manner with a written description 
of the actions, if any, the Secretary plans to take and, where 
applicable, the reasons why such actions differ from the course proposed 
by the residents.
    (B)(i) If a public housing agency is identified as troubled under 
this subsection, the Secretary shall notify the agency of the troubled 
status of the agency.
    (ii)(I) Upon the expiration of the 1-year period beginning on the 
later of the date on which the agency receives initial notice from the 
Secretary of the troubled status of the agency under clause (i) and 
October 21, 1998, the agency shall improve its performance, as measured 
by the performance indicators established pursuant to paragraph (1), by 
at least 50 percent of the difference between the most recent 
performance measurement and the measurement necessary to remove that 
agency's designation as troubled.
    (II) Upon the expiration of the 2-year period beginning on the later 
of the date on which the agency receives initial notice from the 
Secretary of the troubled status of the agency under clause (i) and 
October 21, 1998, the agency shall improve its performance, as measured 
by the performance indicators established pursuant to paragraph (1), 
such that the agency is no longer designated as troubled.
    (III) In the event that a public housing agency designated as 
troubled under this subsection fails to comply with the requirements set 
forth in subclause (I) or (II), the Secretary shall--
        (aa) in the case of a troubled public housing agency with 1,250 
    or more units, petition for the appointment of a receiver pursuant 
    to subparagraph (A)(ii); or
        (bb) in the case of a troubled public housing agency with fewer 
    than 1,250 units, either petition for the appointment of a receiver 
    pursuant to subparagraph (A)(ii), or take possession of the public 
    housing agency (including all or part of any project or program of 
    the agency) pursuant to subparagraph (A)(iv) and appoint, on a 
    competitive or noncompetitive basis, an individual or entity as an 
    administrative receiver to assume the responsibilities of the 
    Secretary for the administration of all or part of the public 
    housing agency (including all or part of any project or program of 
    the agency).

This subparagraph shall not be construed to limit the courses of action 
available to the Secretary under subparagraph (A).
    (IV) During the period between the date on which a petition is filed 
under subclause (III)(aa) and the date on which a receiver assumes 
responsibility for the management of the public housing agency under 
such subclause, the Secretary may take possession of the public housing 
agency (including all or part of any project or program of the agency) 
pursuant to subparagraph (A)(iv) and may appoint, on a competitive or 
noncompetitive basis, an individual or entity as an administrative 
receiver to assume the responsibilities of the Secretary for the 
administration of all or part of the public housing agency (including 
all or part of any project or program of the agency).
    (C) If a receiver is appointed pursuant to subparagraph (A)(ii), in 
addition to the powers accorded by the court appointing the receiver, 
the receiver--
        (i) may abrogate any contract to which the United States or an 
    agency of the United States is not a party that, in the receiver's 
    written determination (which shall include the basis for such 
    determination), substantially impedes correction of the substantial 
    default, but only after the receiver determines that reasonable 
    efforts to renegotiate such contract have failed;
        (ii) may demolish and dispose of all or part of the assets of 
    the public housing agency (including all or part of any project of 
    the agency) in accordance with section 1437p of this title, 
    including disposition by transfer of properties to resident-
    supported nonprofit entities;
        (iii) if determined to be appropriate by the Secretary, may seek 
    the establishment, as permitted by applicable State and local law, 
    of 1 or more new public housing agencies;
        (iv) if determined to be appropriate by the Secretary, may seek 
    consolidation of all or part of the agency (including all or part of 
    any project or program of the agency), as permitted by applicable 
    State and local laws, into other well-managed public housing 
    agencies with the consent of such well-managed agencies; and
        (v) shall not be required to comply with any State or local law 
    relating to civil service requirements, employee rights (except 
    civil rights), procurement, or financial or administrative controls 
    that, in the receiver's written determination (which shall include 
    the basis for such determination), substantially impedes correction 
    of the substantial default.

    (D)(i) If, pursuant to subparagraph (A)(iv), the Secretary takes 
possession of all or part of the public housing agency, including all or 
part of any project or program of the agency, the Secretary--
        (I) may abrogate any contract to which the United States or an 
    agency of the United States is not a party that, in the written 
    determination of the Secretary (which shall include the basis for 
    such determination), substantially impedes correction of the 
    substantial default, but only after the Secretary determines that 
    reasonable efforts to renegotiate such contract have failed;
        (II) may demolish and dispose of all or part of the assets of 
    the public housing agency (including all or part of any project of 
    the agency) in accordance with section 1437p of this title, 
    including disposition by transfer of properties to resident-
    supported nonprofit entities;
        (III) may seek the establishment, as permitted by applicable 
    State and local law, of 1 or more new public housing agencies;
        (IV) may seek consolidation of all or part of the agency 
    (including all or part of any project or program of the agency), as 
    permitted by applicable State and local laws, into other well-
    managed public housing agencies with the consent of such well-
    managed agencies;
        (V) shall not be required to comply with any State or local law 
    relating to civil service requirements, employee rights (except 
    civil rights), procurement, or financial or administrative controls 
    that, in the Secretary's written determination (which shall include 
    the basis for such determination), substantially impedes correction 
    of the substantial default; and
        (VI) shall, without any action by a district court of the United 
    States, have such additional authority as a district court of the 
    United States would have the authority to confer upon a receiver to 
    achieve the purposes of the receivership.

    (ii) If, pursuant to subparagraph (B)(ii)(III)(bb), the Secretary 
appoints an administrative receiver to assume the responsibilities of 
the Secretary for the administration of all or part of the public 
housing agency (including all or part of any project or program of the 
agency), the Secretary may delegate to the administrative receiver any 
or all of the powers given the Secretary by this subparagraph, as the 
Secretary determines to be appropriate and subject to clause (iii).
    (iii) An administrative receiver may not take an action described in 
subclause (III) or (IV) of clause (i) unless the Secretary first 
approves an application by the administrative receiver to authorize such 
action.
    (E) The Secretary may make available to receivers and other entities 
selected or appointed pursuant to this paragraph such assistance as the 
Secretary determines in the discretion of the Secretary is necessary and 
available to remedy the substantial deterioration of living conditions 
in individual public housing projects or other related emergencies that 
endanger the health, safety, and welfare of public housing residents or 
families assisted under section 1437f of this title. A decision made by 
the Secretary under this paragraph shall not be subject to review in any 
court of the United States, or in any court of any State, territory, or 
possession of the United States.
    (F) In any proceeding under subparagraph (A)(ii), upon a 
determination that a substantial default has occurred and without regard 
to the availability of alternative remedies, the court shall appoint a 
receiver to conduct the affairs of all or part of the public housing 
agency in a manner consistent with this chapter and in accordance with 
such further terms and conditions as the court may provide. The receiver 
appointed may be another public housing agency, a private management 
corporation, or any other person or appropriate entity. The court shall 
have power to grant appropriate temporary or preliminary relief pending 
final disposition of the petition by the Secretary.
    (G) The appointment of a receiver pursuant to this paragraph may be 
terminated, upon the petition of any party, when the court determines 
that all defaults have been cured or the public housing agency is 
capable again of discharging its duties.
    (H) If the Secretary (or an administrative receiver appointed by the 
Secretary) takes possession of a public housing agency (including all or 
part of any project or program of the agency), or if a receiver is 
appointed by a court, the Secretary or receiver shall be deemed to be 
acting not in the official capacity of that person or entity, but rather 
in the capacity of the public housing agency, and any liability 
incurred, regardless of whether the incident giving rise to that 
liability occurred while the Secretary or receiver was in possession of 
all or part of the public housing agency (including all or part of any 
project or program of the agency), shall be the liability of the public 
housing agency.
    (4) Sanctions for improper use of amounts.--
        (A) In general.--In addition to any other actions authorized 
    under this chapter, if the Secretary finds that a public housing 
    agency receiving assistance amounts under section 1437g of this 
    title for public housing has failed to comply substantially with any 
    provision of this chapter relating to the public housing program, 
    the Secretary may--
            (i) terminate assistance payments under this \6\ section 
        1437g of this title to the agency;
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    \6\ So in original. The word ``this'' probably should not appear.
---------------------------------------------------------------------------
            (ii) withhold from the agency amounts from the total 
        allocations for the agency pursuant to section 1437g of this 
        title;
            (iii) reduce the amount of future assistance payments under 
        section 1437g of this title to the agency by an amount equal to 
        the amount of such payments that were not expended in accordance 
        with this chapter;
            (iv) limit the availability of assistance amounts provided 
        to the agency under section 1437g of this title to programs, 
        projects, or activities not affected by such failure to comply;
            (v) withhold from the agency amounts allocated for the 
        agency under section 1437f of this title; or
            (vi) order other corrective action with respect to the 
        agency.

        (B) Termination of compliance action.--If the Secretary takes 
    action under subparagraph (A) with respect to a public housing 
    agency, the Secretary shall--
            (i) in the case of action under subparagraph (A)(i), resume 
        payments of assistance amounts under section 1437g of this title 
        to the agency in the full amount of the total allocations under 
        section 1437g of this title for the agency at the time that the 
        Secretary first determines that the agency will comply with the 
        provisions of this chapter relating to the public housing 
        program;
            (ii) in the case of action under clause (ii) or (v) of 
        subparagraph (A), make withheld amounts available as the 
        Secretary considers appropriate to ensure that the agency 
        complies with the provisions of this chapter relating to such 
        program;
            (iii) in the case of action under subparagraph (A)(iv), 
        release such restrictions at the time that the Secretary first 
        determines that the agency will comply with the provisions of 
        this chapter relating to such program; or
            (iv) in the case of action under subparagraph (vi), cease 
        such action at the time that the Secretary first determines that 
        the agency will comply with the provisions of this chapter 
        relating to such program.

    (5) The Secretary shall submit to the Congress annually, as a part 
of the report of the Secretary under section 3536 of this title, a 
report that--
        (A) identifies the public housing agencies that have been 
    designated as troubled under paragraph (2);
        (B) describes the grounds on which such public housing agencies 
    were designated as troubled and continue to be so designated;
        (C) describes the agreements that have been entered into with 
    such agencies under such paragraph;
        (D) describes the status of progress under such agreements;
        (E) describes any action that has been taken in accordance with 
    paragraph (3), including an accounting of the authorized funds that 
    have been expended to support such actions; and
        (F) describes the status of any public housing agency designated 
    as troubled with respect to the program for assistance from the 
    Capital Fund under section 1437g(d) of this title and specifies the 
    amount of assistance the agency received under such program.

    (6)(A) To the extent that the Secretary determines such action to be 
necessary in order to ensure the accuracy of any certification made 
under this section, the Secretary shall require an independent auditor 
to review documentation or other information maintained by a public 
housing agency pursuant to this section to substantiate each 
certification submitted by the agency or corporation relating to the 
performance of that agency or corporation.
    (B) The Secretary may withhold, from assistance otherwise payable to 
the agency or corporation under section 1437g of this title, amounts 
sufficient to pay for the reasonable costs of any review under this 
paragraph.
    (7) The Secretary shall apply the provisions of this subsection to 
resident management corporations in the same manner as applied to public 
housing agencies.

(k) Administrative grievance procedure regulations: grounds of adverse 
        action, hearing, examination of documents, representation, 
        evidence, decision; judicial hearing; eviction and termination 
        procedures

    The Secretary shall by regulation require each public housing agency 
receiving assistance under this chapter to establish and implement an 
administrative grievance procedure under which tenants will--
        (1) be advised of the specific grounds of any proposed adverse 
    public housing agency action;
        (2) have an opportunity for a hearing before an impartial party 
    upon timely request within any period applicable under subsection 
    (l) of this section;
        (3) have an opportunity to examine any documents or records or 
    regulations related to the proposed action;
        (4) be entitled to be represented by another person of their 
    choice at any hearing;
        (5) be entitled to ask questions of witnesses and have others 
    make statements on their behalf; and
        (6) be entitled to receive a written decision by the public 
    housing agency on the proposed action.

For any grievance concerning an eviction or termination of tenancy that 
involves any activity that threatens the health, safety, or right to 
peaceful enjoyment of the premises of other tenants or employees of the 
public housing agency or any violent or drug-related criminal activity 
on or off such premises, or any activity resulting in a felony 
conviction, the agency may (A) establish an expedited grievance 
procedure as the Secretary shall provide by rule under section 553 of 
title 5, or (B) exclude from its grievance procedure any such grievance, 
in any jurisdiction which requires that prior to eviction, a tenant be 
given a hearing in court which the Secretary determines provides the 
basic elements of due process (which the Secretary shall establish by 
rule under section 553 of title 5). Such elements of due process shall 
not include a requirement that the tenant be provided an opportunity to 
examine relevant documents within the possession of the public housing 
agency. The agency shall provide to the tenant a reasonable opportunity, 
prior to hearing or trial, to examine any relevant documents, records, 
or regulations directly related to the eviction or termination.

(l) Leases; terms and conditions; maintenance; termination

    Each public housing agency shall utilize leases which--
        (1) have a term of 12 months and shall be automatically renewed 
    for all purposes except for noncompliance with the requirements 
    under section 1437j(c) of this title (relating to community service 
    requirements); except that nothing in this subchapter shall prevent 
    a resident from seeking timely redress in court for failure to renew 
    based on such noncompliance;
        (2) do not contain unreasonable terms and conditions;
        (3) obligate the public housing agency to maintain the project 
    in a decent, safe, and sanitary condition;
        (4) require the public housing agency to give adequate written 
    notice of termination of the lease which shall not be less than--
            (A) a reasonable period of time, but not to exceed 30 days--
                (i) if the health or safety of other tenants, public 
            housing agency employees, or persons residing in the 
            immediate vicinity of the premises is threatened; or
                (ii) in the event of any drug-related or violent 
            criminal activity or any felony conviction;

            (B) 14 days in the case of nonpayment of rent; and
            (C) 30 days in any other case, except that if a State or 
        local law provides for a shorter period of time, such shorter 
        period shall apply;

        (5) require that the public housing agency may not terminate the 
    tenancy except for serious or repeated violation of the terms or 
    conditions of the lease or for other good cause;
        (6) provide that any criminal activity that threatens the 
    health, safety, or right to peaceful enjoyment of the premises by 
    other tenants or any drug-related criminal activity on or off such 
    premises, engaged in by a public housing tenant, any member of the 
    tenant's household, or any guest or other person under the tenant's 
    control, shall be cause for termination of tenancy;
        (7) specify that with respect to any notice of eviction or 
    termination, notwithstanding any State law, a public housing tenant 
    shall be informed of the opportunity, prior to any hearing or trial, 
    to examine any relevant documents, records, or regulations directly 
    related to the eviction or termination;
        (7) \7\ provide that any occupancy in violation of section 
    13661(b) of this title (relating to ineligibility of illegal drug 
    users and alcohol abusers) or the furnishing of any false or 
    misleading information pursuant to section 13662 of this title 
    (relating to termination of tenancy and assistance for illegal drug 
    users and alcohol abusers) shall be cause for termination of 
    tenancy; \8\
---------------------------------------------------------------------------
    \7\ So in original. Probably should be ``(8)''.
    \8\ So in original. Probably should be followed by ``and''.
---------------------------------------------------------------------------
        (9) provide that it shall be cause for immediate termination of 
    the tenancy of a public housing tenant if such tenant--
            (A) is fleeing to avoid prosecution, or custody or 
        confinement after conviction, under the laws of the place from 
        which the individual flees, for a crime, or attempt to commit a 
        crime, which is a felony under the laws of the place from which 
        the individual flees, or which, in the case of the State of New 
        Jersey, is a high misdemeanor under the laws of such State; or
            (2) \9\ is violating a condition of probation or parole 
        imposed under Federal or State law.
---------------------------------------------------------------------------
    \9\ So in original. Probably should be ``(B)''.

For purposes of paragraph (5),\10\ 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 defined in section 802 of title 21).
---------------------------------------------------------------------------
    \10\ See References in Text note below.
---------------------------------------------------------------------------

(m) Reporting requirements; limitation

    The Secretary shall not impose any unnecessarily duplicative or 
burdensome reporting requirements on tenants or public housing agencies 
assisted under this chapter.

(n) Notice to post office regarding eviction for criminal activity

    When a public housing agency evicts an individual or family from a 
dwelling unit for engaging in criminal activity, including drug-related 
criminal activity, the public housing agency shall notify the local post 
office serving that dwelling unit that such individual or family is no 
longer residing in the dwelling unit.

(o) Public housing assistance for foster care children

    In providing housing in low-income housing projects, each public 
housing agency may coordinate with any local public agencies involved in 
providing for the welfare of children to make available dwelling units 
to--
        (1) families identified by the agencies as having a lack of 
    adequate housing that is a primary factor--
            (A) in the imminent placement of a child in foster care; or
            (B) in preventing the discharge of a child from foster care 
        and reunification with his or her family; and

        (2) youth, upon discharge from foster care, in cases in which 
    return to the family or extended family or adoption is not 
    available.

(p) Repealed. Pub. L. 105-276, title V, Sec. 519(b), Oct. 21, 1998, 112 
        Stat. 2561

(q) Availability of records

                           (1) In general

        (A) Provision of information

            Notwithstanding any other provision of law, except as 
        provided in subparagraph (C), the National Crime Information 
        Center, police departments, and other law enforcement agencies 
        shall, upon request, provide information to public housing 
        agencies regarding the criminal conviction records of adult 
        applicants for, or tenants of, covered housing assistance for 
        purposes of applicant screening, lease enforcement, and 
        eviction.

        (B) Requests by owners of project-based section 8 [42 U.S.C. 
                1437f] housing

            A public housing agency may make a request under 
        subparagraph (A) for information regarding applicants for, or 
        tenants of, housing that is provided project-based assistance 
        under section 1437f of this title only if the housing is located 
        within the jurisdiction of the agency and the owner of such 
        housing has requested that the agency obtain such information on 
        behalf of the owner. Upon such a request by the owner, the 
        agency shall make a request under subparagraph (A) for the 
        information. The agency may not make such information available 
        to the owner but shall perform determinations for the owner 
        regarding screening, lease enforcement, and eviction based on 
        criteria supplied by the owner.

        (C) Exception

            A law enforcement agency described in subparagraph (A) shall 
        provide information under this paragraph relating to any 
        criminal conviction of a juvenile only to the extent that the 
        release of such information is authorized under the law of the 
        applicable State, tribe, or locality.

                     (2) Opportunity to dispute

        Before an adverse action is taken with regard to assistance 
    under this subchapter on the basis of a criminal record, the public 
    housing agency shall provide the tenant or applicant with a copy of 
    the criminal record and an opportunity to dispute the accuracy and 
    relevance of that record.

                              (3) Fees

        A public housing agency may be charged a reasonable fee for 
    information provided under paragraph (1). In the case of a public 
    housing agency obtaining information pursuant to paragraph (1)(B) 
    for another owner of housing, the agency may pass such fee on to the 
    owner initiating the request and may charge additional reasonable 
    fees for making the request on behalf of the owner and taking other 
    actions for owners under this subsection.

                       (4) Records management

        Each public housing agency shall establish and implement a 
    system of records management that ensures that any criminal record 
    received by the public housing agency is--
            (A) maintained confidentially;
            (B) not misused or improperly disseminated; and
            (C) destroyed, once the purpose for which the record was 
        requested has been accomplished.

                         (5) Confidentiality

        A public housing agency receiving information under this 
    subsection may use such information only for the purposes provided 
    in this subsection and such information may not be disclosed to any 
    person who is not an officer, employee, or authorized representative 
    of the agency and who has a job-related need to have access to the 
    information in connection with admission of applicants, eviction of 
    tenants, or termination of assistance. For judicial eviction 
    proceedings, disclosures may be made to the extent necessary. The 
    Secretary shall, by regulation, establish procedures necessary to 
    ensure that information provided under this subsection to a public 
    housing agency is used, and confidentiality of such information is 
    maintained, as required under this subsection. The Secretary shall 
    establish standards for confidentiality of information obtained 
    under this subsection by public housing agencies on behalf of 
    owners.

                             (6) Penalty

        Any person who knowingly and willfully requests or obtains any 
    information concerning an applicant for, or tenant of, covered 
    housing assistance pursuant to the authority under this subsection 
    under false pretenses, or any person who knowingly and willfully 
    discloses any such information in any manner to any individual not 
    entitled under any law to receive it, shall be guilty of a 
    misdemeanor and fined not more than $5,000. The term ``person'' as 
    used in this paragraph include \11\ an officer, employee, or 
    authorized representative of any public housing agency.
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    \11\ So in original. Probably should be ``includes''.
---------------------------------------------------------------------------

                          (7) Civil action

        Any applicant for, or tenant of, covered housing assistance 
    affected by (A) a negligent or knowing disclosure of information 
    referred to in this subsection about such person by an officer, 
    employee, or authorized representative of any public housing agency, 
    which disclosure is not authorized by this subsection, or (B) any 
    other negligent or knowing action that is inconsistent with this 
    subsection, may bring a civil action for damages and such other 
    relief as may be appropriate against any public housing agency 
    responsible for such unauthorized action. The district court of the 
    United States in the district in which the affected applicant or 
    tenant resides, in which such unauthorized action occurred, or in 
    which the officer, employee, or representative alleged to be 
    responsible for any such unauthorized action resides, shall have 
    jurisdiction in such matters. Appropriate relief that may be ordered 
    by such district courts shall include reasonable attorney's fees and 
    other litigation costs.

                           (8) Definitions

        For purposes of this subsection, the following definitions shall 
    apply:

        (A) Adult

            The term ``adult'' means a person who is 18 years of age or 
        older, or who has been convicted of a crime as an adult under 
        any Federal, State, or tribal law.

        (B) Covered housing assistance

            The term ``covered housing assistance'' means--
                (i) a dwelling unit in public housing;
                (ii) a dwelling unit in housing that is provided 
            project-based assistance under section 1437f of this title, 
            including new construction and substantial rehabilitation 
            projects; and
                (iii) tenant-based assistance under section 1437f of 
            this title.

        (C) Owner

            The term ``owner'' means, with respect to covered housing 
        assistance described in subparagraph (B)(ii), the entity or 
        private person (including a cooperative or public housing 
        agency) that has the legal right to lease or sublease dwelling 
        units in the housing assisted.

(r) Site-based waiting lists

                            (1) Authority

        A public housing agency may establish procedures for maintaining 
    waiting lists for admissions to public housing projects of the 
    agency, which may include (notwithstanding any other law, 
    regulation, handbook, or notice to the contrary) a system of site-
    based waiting lists under which applicants may apply directly at or 
    otherwise designate the project or projects in which they seek to 
    reside. All such procedures shall comply with all provisions of 
    title VI of the Civil Rights Act of 1964 [42 U.S.C. 2000d et seq.], 
    the Fair Housing Act [42 U.S.C. 3601 et seq.], and other applicable 
    civil rights laws.

                             (2) Notice

        Any system described in paragraph (1) shall provide for the full 
    disclosure by the public housing agency to each applicant of any 
    option available to the applicant in the selection of the project in 
    which to reside.

(s) Authority to require access to criminal records

    A public housing agency may require, as a condition of providing 
admission to the public housing program or assisted housing program 
under the jurisdiction of the public housing agency, that each adult 
member of the household provide a signed, written authorization for the 
public housing agency to obtain records described in subsection (q)(1) 
of this section regarding such member of the household from the National 
Crime Information Center, police departments, and other law enforcement 
agencies.

(t) Obtaining information from drug abuse treatment facilities

                            (1) Authority

        Notwithstanding any other provision of law other than the Public 
    Health Service Act (42 U.S.C. 201 et seq.), a public housing agency 
    may require each person who applies for admission to public housing 
    to sign one or more forms of written consent authorizing the agency 
    to receive information from a drug abuse treatment facility that is 
    solely related to whether the applicant is currently engaging in the 
    illegal use of a controlled substance.

             (2) Confidentiality of applicant's records

        (A) Limitation on information requested

            In a form of written consent, a public housing agency may 
        request only whether the drug abuse treatment facility has 
        reasonable cause to believe that the applicant is currently 
        engaging in the illegal use of a controlled substance.

        (B) Records management

            Each public housing agency that receives information under 
        this subsection from a drug abuse treatment facility shall 
        establish and implement a system of records management that 
        ensures that any information received by the public housing 
        agency under this subsection--
                (i) is maintained confidentially in accordance with 
            section 543 of the Public Health Service Act [42 U.S.C. 
            290dd-2];
                (ii) is not misused or improperly disseminated; and
                (iii) is destroyed, as applicable--
                    (I) not later than 5 business days after the date on 
                which the public housing agency gives final approval for 
                an application for admission; or
                    (II) if the public housing agency denies the 
                application for admission, in a timely manner after the 
                date on which the statute of limitations for the 
                commencement of a civil action from the applicant based 
                upon that denial of admission has expired.

        (C) Expiration of written consent

            In addition to the requirements of subparagraph (B), an 
        applicant's signed written consent shall expire automatically 
        after the public housing agency has made a final decision to 
        either approve or deny the applicant's application for 
        admittance to public housing.

      (3) Prohibition of discriminatory treatment of applicants

        (A) Forms signed

            A public housing agency may only require an applicant for 
        admission to public housing to sign one or more forms of written 
        consent under this subsection if the public housing agency 
        requires all such applicants to sign the same form or forms of 
        written consent.

        (B) Circumstances of inquiry

            A public housing agency may only make an inquiry to a drug 
        abuse treatment facility under this subsection if--
                (i) the public housing agency makes the same inquiry 
            with respect to all applicants; or
                (ii) the public housing agency only makes the same 
            inquiry with respect to each and every applicant with 
            respect to whom--
                    (I) the public housing agency receives information 
                from the criminal record of the applicant that indicates 
                evidence of a prior arrest or conviction; or
                    (II) the public housing agency receives information 
                from the records of prior tenancy of the applicant that 
                demonstrates that the applicant--
                        (aa) engaged in the destruction of property;
                        (bb) engaged in violent activity against another 
                    person; or
                        (cc) interfered with the right of peaceful 
                    enjoyment of the premises of another tenant.

                          (4) Fee permitted

        A drug abuse treatment facility may charge a public housing 
    agency a reasonable fee for information provided under this 
    subsection.

          (5) Disclosure permitted by treatment facilities

        A drug abuse treatment facility shall not be liable for damages 
    based on any information required to be disclosed pursuant to this 
    subsection if such disclosure is consistent with section 543 of the 
    Public Health Service Act (42 U.S.C. 290dd-2).

                (6) Option to not request information

        A public housing agency shall not be liable for damages based on 
    its decision not to require each person who applies for admission to 
    public housing to sign one or more forms of written consent 
    authorizing the public housing agency to receive information from a 
    drug abuse treatment facility under this subsection.

                           (7) Definitions

        For purposes of this subsection, the following definitions shall 
    apply:

        (A) Drug abuse treatment facility

            The term ``drug abuse treatment facility'' means an entity 
        that--
                (i) is--
                    (I) an identified unit within a general medical care 
                facility; or
                    (II) an entity other than a general medical care 
                facility; and

                (ii) holds itself out as providing, and provides, 
            diagnosis, treatment, or referral for treatment with respect 
            to the illegal use of a controlled substance.

        (B) Controlled substance

            The term ``controlled substance'' has the meaning given the 
        term in section 802 of title 21.

        (C) Currently engaging in the illegal use of a controlled 
                substance

            The term ``currently engaging in the illegal use of a 
        controlled substance'' means the illegal use of a controlled 
        substance that occurred recently enough to justify a reasonable 
        belief that an applicant's illegal use of a controlled substance 
        is current or that continuing illegal use of a controlled 
        substance by the applicant is a real and ongoing problem.

                         (8) Effective date

        This subsection shall take effect on October 21, 1998, and 
    without the necessity of guidance from, or any regulation issued by, 
    the Secretary.

(Sept. 1, 1937, ch. 896, title I, Sec. 6, as added Pub. L. 93-383, title 
II, Sec. 201(a), Aug. 22, 1974, 88 Stat. 659; amended Pub. L. 96-153, 
title II, Sec. 206(a), Dec. 21, 1979, 93 Stat. 1108; Pub. L. 96-399, 
title II, Secs. 201(c), (e), 202(c), Oct. 8, 1980, 94 Stat. 1625, 1629; 
Pub. L. 97-35, title III, Sec. 322(c), (d), Aug. 13, 1981, 95 Stat. 402; 
Pub. L. 98-181, title II, Secs. 201(c), 203(a), 204, 205, 214(b), Nov. 
30, 1983, 97 Stat. 1177-1179, 1185; Pub. L. 98-479, title I, 
Sec. 102(b)(4), (5), title II, Sec. 204(b)(1), Oct. 17, 1984, 98 Stat. 
2221, 2233; Pub. L. 99-160, title I, Sec. 101, Nov. 25, 1985, 99 Stat. 
910; Pub. L. 100-242, title I, Secs. 112(b)(2), 116, 170(d), Feb. 5, 
1988, 101 Stat. 1824, 1826, 1867; renumbered title I, Pub. L. 100-358, 
Sec. 5, June 29, 1988, 102 Stat. 681; Pub. L. 100-628, title X, 
Secs. 1001(b), 1014(a)(1), Nov. 7, 1988, 102 Stat. 3263, 3269; Pub. L. 
100-690, title V, Sec. 5101, Nov. 18, 1988, 102 Stat. 4300; Pub. L. 101-
144, title II, Nov. 9, 1989, 103 Stat. 846; Pub. L. 101-625, title V, 
Secs. 501, 502(a), (c)(1), 503(a), (b), 504-506, 572, Nov. 28, 1990, 104 
Stat. 4180, 4181, 4183-4185, 4236; Pub. L. 102-139, title II, Oct. 28, 
1991, 105 Stat. 756, 757; Pub. L. 102-550, title I, Secs. 112, 113, 
title VI, Secs. 622(b), 625(a)(2), 682(a), Oct. 28, 1992, 106 Stat. 
3689, 3817, 3820, 3830; Pub. L. 103-233, title I, Sec. 101(c)(1), title 
III, Sec. 303, Apr. 11, 1994, 108 Stat. 357, 370; Pub. L. 103-327, title 
II, Sept. 28, 1994, 108 Stat. 2315; Pub. L. 104-99, title IV, 
Sec. 402(d)(1), (6)(A)(i), Jan. 26, 1996, 110 Stat. 41, 42; Pub. L. 104-
120, Sec. 9(a)-(c), Mar. 28, 1996, 110 Stat. 836, 837; Pub. L. 104-193, 
title IX, Sec. 903(a)(1), Aug. 22, 1996, 110 Stat. 2348; Pub. L. 104-
330, title V, Sec. 501(b)(3), Oct. 26, 1996, 110 Stat. 4042; Pub. L. 
105-276, title V, Secs. 511(d), 512(b), 514(a)(1), (2)(A), 519(b), 
520(b), 521, 525, 529, 530, 564, 565(a), 575, 576(d)(1), Oct. 21, 1998, 
112 Stat. 2539, 2543, 2547, 2561, 2563, 2568, 2569, 2627, 2628, 2634, 
2640.)

                       References in Text

    The Cranston-Gonzalez National Affordable Housing Act, referred to 
in subsec. (b)(3)(A), is Pub. L. 101-625, Nov. 28, 1990, 104 Stat. 4079. 
Title II of the Act, known as the ``HOME Investments Partnership Act'', 
is classified principally to subchapter II (Sec. 12721 et seq.) of 
chapter 130 of this title. For complete classification of this Act to 
the Code, see Short Title note set out under section 12701 of this title 
and Tables.
    The Housing and Community Development Act of 1974, referred to in 
subsec. (b)(3)(B), is Pub. L. 93-383, Aug. 22, 1974, 88 Stat. 633, as 
amended. Title I of the Act is classified principally to chapter 69 
(Sec. 5301 et seq.) of this title. For complete classification of this 
Act to the Code, see Short Title note set out under section 5301 of this 
title and Tables.
    The Housing and Community Development Act of 1992, referred to in 
subsec. (c)(4)(F), is Pub. L. 102-550, Oct. 28, 1992, 106 Stat. 3672. 
Subtitle C of title VI of the Act is classified generally to subchapter 
I (Sec. 13601 et seq.) of chapter 135 of this title. For complete 
classification of this Act to the Code, see Short Title of 1992 
Amendment note set out under section 5301 of this title and Tables.
    Section 1437l of this title, referred to in subsec. (j)(1)(I)(3), 
(2)(B)(ii), was repealed by Pub. L. 105-276, title V, Sec. 522(a), Oct. 
21, 1998, 112 Stat. 2564.
    Paragraph (5), referred to in the concluding provisions of subsec. 
(l), was redesignated as par. (6) by Pub. L. 105-276, title V, 
Sec. 512(b)(1), Oct. 21, 1998, 112 Stat. 2543.
    The Civil Rights Act of 1964, referred to in subsec. (r)(1), is Pub. 
L. 88-352, July 2, 1964, 78 Stat. 241, as amended. Title VI of the Act 
is classified generally to subchapter V (Sec. 2000d et seq.) of chapter 
21 of this title. For complete classification of this Act to the Code, 
see Short Title note set out under section 2000a of this title and 
Tables.
    The Fair Housing Act, referred to in subsec. (r)(1), is title VIII 
of Pub. L. 90-284, Apr. 11, 1968, 82 Stat. 81, as amended, which is 
classified principally to subchapter I (Sec. 3601 et seq.) of chapter 45 
of this title. For complete classification of this Act to the Code, see 
Short Title note set out under section 3601 of this title and Tables.
    The civil rights laws, referred to in subsec. (r)(1), are classified 
generally to chapter 21 (Sec. 1981 et seq.) of this title.
    The Public Health Service Act, referred to in subsec. (t)(1), is act 
July 1, 1944, ch. 373, 58 Stat. 682, as amended, which is classified 
generally to chapter 6A (Sec. 201 et seq.) of this title. For complete 
classification of this Act to the Code, see Short Title note set out 
under section 201 of this title and Tables.


                            Prior Provisions

    A prior section 6 of act Sept. 1, 1937, ch. 896, 50 Stat. 890, as 
amended, enumerated financial provisions applicable to the Authority and 
was classified to section 1406 of this title, prior to the general 
revision of this chapter by Pub. L. 93-383.


                               Amendments

    1998--Subsec. (a). Pub. L. 105-276, Sec. 511(d), in first sentence, 
inserted ``, in a manner consistent with the public housing agency 
plan'' before the period at end and struck out after first sentence 
``Any such contract may contain a condition requiring the maintenance of 
an open space or playground in connection with the housing project 
involved if deemed necessary by the Secretary for the safety or health 
of children.''
    Subsec. (b)(3), (4). Pub. L. 105-276, Sec. 520(b), added pars. (3) 
and (4).
    Subsec. (c)(4)(A). Pub. L. 105-276, Sec. 514(a)(1), amended subpar. 
(A) generally. For former text of subpar. (A), see 1996 Amendment note 
below.
    Subsec. (c)(4)(E). Pub. L. 105-276, Sec. 529(1), substituted ``for 
each agency that receives assistance under this subchapter'' for 
``except in the case of agencies not receiving operating assistance 
under section 1437g of this title''.
    Subsec. (e). Pub. L. 105-276, Sec. 529(2), struck out subsec. (e) 
which read as follows: ``Every contract for annual contributions shall 
provide that whenever in any year the receipts of a public housing 
agency in connection with a low-income housing project exceed its 
expenditures (including debt service, operation, maintenance, 
establishment of reserves, and other costs and charges), an amount equal 
to such excess shall be applied, or set aside for application, to 
purposes, which, in the determination of the Secretary, will effect a 
reduction in the amount of subsequent annual contributions.''
    Subsec. (f). Pub. L. 105-276, Sec. 530, added subsec. (f).
    Subsec. (j)(1)(B). Pub. L. 105-276, Sec. 564(1)(A), added subpar. 
(B) and struck out former subpar. (B) which read as follows: ``The 
amount and percentage of funds obligated to the public housing agency 
under section 1437l of this title which remain unexpended after 3 
years.''
    Subsec. (j)(1)(D). Pub. L. 105-276, Sec. 564(1)(B), substituted 
``utility'' for ``energy''.
    Subsec. (j)(1)(E). Pub. L. 105-276, Sec. 564(1)(C), which directed 
the transfer and insertion of subpar. (E) after subpar. (D), required no 
change in text.
    Subsec. (j)(1)(H) to (K). Pub. L. 105-276, Sec. 564(1)(D), (E), 
added subpars. (H), (I), relating to extent to which agency implements 
and coordinates strategies, and (J), and redesignated former subpar. (H) 
as (K).
    Subsec. (j)(2)(A)(i). Pub. L. 105-276, Sec. 564(2)(A), inserted 
after first sentence ``Such procedures shall provide that an agency that 
fails on a widespread basis to provide acceptable basic housing 
conditions for its residents shall be designated as a troubled public 
housing agency. The Secretary may use a simplified set of indicators for 
public housing agencies with less than 250 public housing units.'' and, 
in last sentence, substituted ``for assistance from the Capital Fund 
under section 1437g(d) of this title'' for ``under section 1437l of this 
title''.
    Subsec. (j)(2)(A)(iii). Pub. L. 105-276, Sec. 564(2)(B), substituted 
``for assistance from the Capital Fund under section 1437g(d) of this 
title'' for ``under section 1437l of this title''.
    Subsec. (j)(2)(B)(i). Pub. L. 105-276, Sec. 564(2)(C), inserted 
``with more than 250 units'' after ``public housing agency'' and 
substituted ``comparable and recent review'' for ``review conducted 
under section 1437l(p) of this title''.
    Subsec. (j)(2)(C). Pub. L. 105-276, Sec. 564(2)(D), inserted ``(if 
applicable)'' after ``subparagraph (B)'' in first sentence.
    Subsec. (j)(3)(A)(i). Pub. L. 105-276, Sec. 565(a)(1)(A), added cl. 
(i) and struck out former cl. (i) which read as follows: ``solicit 
competitive proposals from other public housing agencies and private 
housing management agents (which may be selected by existing tenants 
through administrative procedures established by the Secretary) in the 
eventuality that these agents may be needed for managing all, or part, 
of the housing administered by a public housing agency;''.
    Subsec. (j)(3)(A)(iii). Pub. L. 105-276, Sec. 565(a)(1)(B), 
substituted ``from the Capital Fund under section 1437g(d) of this 
title'' for ``under section 1437l of this title''.
    Subsec. (j)(3)(A)(iv), (v). Pub. L. 105-276, Sec. 565(a)(1)(C), 
added cls. (iv) and (v) and struck out former cl. (iv) which read as 
follows: ``require the agency to make other arrangements acceptable to 
the Secretary and in the best interests of the public housing residents 
for managing all, or part of, such housing.''
    Subsec. (j)(3)(B) to (H). Pub. L. 105-276, Sec. 565(a)(2), added 
subpars. (B) to (H) and struck out former subpars. (B) to (D) which read 
as follows:
    ``(B) The Secretary may make available to receivers and other 
entities selected or appointed pursuant to this paragraph such 
assistance as is necessary to remedy the substantial deterioration of 
living conditions in individual public housing developments or other 
related emergencies that endanger the health, safety and welfare of the 
residents.
    ``(C) In any proceeding under subparagraph (A)(ii), upon a 
determination that a substantial default has occurred, and without 
regard to the availability of alternative remedies, the court shall 
appoint a receiver to conduct the affairs of the public housing agency 
in a manner consistent with this chapter and in accordance with such 
further terms and conditions as the court may provide. The court shall 
have power to grant appropriate temporary or preliminary relief pending 
final disposition of the petition by the Secretary.
    ``(D) The appointment of a receiver pursuant to this subsection may 
be terminated, upon the petition of any party, when the court determines 
that all defaults have been cured and the housing operated by the public 
housing agency will thereafter be operated in accordance with the 
covenants and conditions to which the public housing agency is 
subject.''
    Subsec. (j)(4), (5). Pub. L. 105-276, Sec. 521, added par. (4) and 
redesignated former par. (4) as (5).
    Subsec. (j)(5)(F). Pub. L. 105-276, Sec. 564(3), substituted 
``program for assistance from the Capital Fund under section 1437g(d) of 
this title and specifies the amount of assistance the agency received 
under such program.'' for ``program under section 1437l of this title 
and specifies the amount of assistance the agency received under section 
1437l of this title and any credits accumulated by the agency under 
section 1437l(k)(5)(D) of this title.''
    Subsec. (j)(6), (7). Pub. L. 105-276, Sec. 564(4), added pars. (6) 
and (7).
    Subsec. (k). Pub. L. 105-276, Sec. 575(a), in first sentence of 
concluding provisions, inserted ``violent or'' before ``drug-related'' 
and ``or any activity resulting in a felony conviction,'' after ``on or 
off such premises,''.
    Subsec. (l)(1) to (3). Pub. L. 105-276, Sec. 512(b)(1), (3), added 
par. (1) and redesignated former pars. (1) to (3) as (2) to (4), 
respectively.
    Subsec. (l)(4). Pub. L. 105-276, Sec. 512(b)(1), redesignated par. 
(3) as (4). Former par. (4) redesignated (5).
    Subsec. (l)(4)(A). Pub. L. 105-276, Sec. 575(b)(1)(A), added subpar. 
(A) and struck out former subpar. (A) which read as follows: ``a 
reasonable time, but not to exceed 30 days, when the health or safety of 
other tenants or public housing agency employees is threatened;''.
    Subsec. (l)(4)(C). Pub. L. 105-276, Sec. 575(b)(1)(B), inserted ``, 
except that if a State or local law provides for a shorter period of 
time, such shorter period shall apply'' before semicolon at end.
    Subsec. (l)(5), (6). Pub. L. 105-276, Sec. 512(b)(1), redesignated 
pars. (4) and (5) as (5) and (6), respectively. Former par. (6) 
redesignated (7), relating to specification that tenant be informed of 
opportunity to examine documents.
    Subsec. (l)(7). Pub. L. 105-276, Sec. 575(b)(4), added par. (7) 
relating to termination for illegal drug use and alcohol abuse.
    Pub. L. 105-276, Sec. 575(b)(2), struck out ``and'' at end.
    Pub. L. 105-276, Sec. 512(b)(2), which directed the redesignation of 
par. (7) as (9), was executed by redesignating the par. (7), relating to 
termination of tenancy if tenant is fleeing prosecution or in violation 
of parole, as (9), to reflect the probable intent of Congress.
    Pub. L. 105-276, Sec. 512(b)(1), redesignated par. (6) as (7), 
relating to specification that tenant be informed of opportunity to 
examine documents.
    Subsec. (l)(9). Pub. L. 105-276, Sec. 512(b)(2), which directed the 
redesignation of par. (7) as (9), was executed by redesignating the par. 
(7), relating to termination of tenancy if tenant is fleeing prosecution 
or in violation of parole, as (9), to reflect the probable intent of 
Congress.
    Subsec. (o). Pub. L. 105-276, Sec. 514(a)(2)(A), substituted ``In'' 
for ``Subject'' and all that follows through ``, in'' in introductory 
provisions.
    Subsec. (p). Pub. L. 105-276, Sec. 519(b), struck out subsec. (p) 
which read as follows: ``With respect to amounts available for 
obligation on or after October 1, 1991, the criteria established under 
section 1439(d)(5)(B) of this title for any competition for assistance 
for new construction, acquisition, or acquisition and rehabilitation of 
public housing shall give preference to applications for housing to be 
located in a local market area that has an inadequate supply of housing 
available for use by very low-income families. The Secretary shall 
establish criteria for determining that the housing supply of a local 
market area is inadequate, which shall require--
        ``(1)(A) information regarding housing market conditions showing 
    that the supply of rental housing affordable by very low-income 
    families is inadequate, taking into account vacancy rates in such 
    housing and other market indicators; and
        ``(B) evidence that significant numbers of families in the local 
    market area holding certificates and vouchers under section 1437f of 
    this title are experiencing significant difficulty in leasing 
    housing meeting program and family-size requirements; or
        ``(2) evidence that the proposed development would provide 
    increased housing opportunities for minorities or address special 
    housing needs.''
    Subsec. (q)(1)(A). Pub. L. 105-276, Sec. 575(c)(1)(A)(ii), which 
directed the substitution of ``covered housing assistance'' for ``public 
housing'', was executed by making the substitution in the second place 
that ``public housing'' appeared, to reflect the probable intent of 
Congress.
    Pub. L. 105-276, Sec. 575(c)(1)(A)(i), substituted ``subparagraph 
(C)'' for ``subparagraph (B)''.
    Subsec. (q)(1)(B), (C). Pub. L. 105-276, Sec. 575(c)(1)(B), (C), 
added subpar. (B) and redesignated former subpar. (B) as (C).
    Subsec. (q)(3). Pub. L. 105-276, Sec. 575(c)(2), substituted 
``Fees'' for ``Fee'' in heading and inserted at end ``In the case of a 
public housing agency obtaining information pursuant to paragraph (1)(B) 
for another owner of housing, the agency may pass such fee on to the 
owner initiating the request and may charge additional reasonable fees 
for making the request on behalf of the owner and taking other actions 
for owners under this subsection.''
    Subsec. (q)(5) to (8). Pub. L. 105-276, Sec. 575(c)(3), (4), added 
pars. (5) to (8) and struck out heading and text of former par. (5). 
Text read as follows: ``For purposes of this subsection, the term 
`adult' means a person who is 18 years of age or older, or who has been 
convicted of a crime as an adult under any Federal, State, or tribal 
law.''
    Subsec. (r). Pub. L. 105-276, Sec. 576(d)(1), redesignated subsec. 
(s) as (r) and struck out heading and text of former subsec. (r). Text 
read as follows: ``Any tenant evicted from housing assisted under this 
subchapter by reason of drug-related criminal activity (as that term is 
defined in section 1437f(f) of this title) shall not be eligible for 
housing assistance under this subchapter during the 3-year period 
beginning on the date of such eviction, unless the evicted tenant 
successfully completes a rehabilitation program approved by the public 
housing agency (which shall include a waiver of this subsection if the 
circumstances leading to eviction no longer exist).''
    Subsec. (s). Pub. L. 105-276, Sec. 576(d)(1)(B), redesignated 
subsec. (t) as (s). Former subsec. (s) redesignated (r).
    Pub. L. 105-276, Sec. 525, added subsec. (s).
    Subsec. (t). Pub. L. 105-276, Sec. 576(d)(1)(B), redesignated 
subsec. (u) as (t). Former subsec. (t) redesignated (s).
    Pub. L. 105-276, Sec. 575(d), added subsec. (t).
    Subsec. (u). Pub. L. 105-276, Sec. 576(d)(1)(B), redesignated 
subsec. (u) as (t).
    Pub. L. 105-276, Sec. 575(e), added subsec. (u).
    1996--Subsec. (b)(1). Pub. L. 104-330 struck out ``and public 
housing for Indians and Alaska Natives in accordance with the Indian 
Housing Act of 1988'' after ``operation of public housing''.
    Subsec. (c)(4)(A). Pub. L. 104-99, Sec. 402(d)(1), (f), temporarily 
amended subpar. (A) generally, substituting
    ``(A) the establishment, after public notice and an opportunity for 
public comment, of a written system of preferences for admission to 
public housing, if any, that is not inconsistent with the comprehensive 
housing affordability strategy under title I of the Cranston-Gonzalez 
National Affordable Housing Act;'' for
    ``(A) except for projects or portions of projects designated for 
occupancy pursuant to section 1437e(a) of this title with respect to 
which the Secretary has determined that application of this subparagraph 
would result in excessive delays in meeting the housing need of such 
families, the establishment of tenant selection criteria which--
        ``(i) for not less than 50 percent of the units that are made 
    available for occupancy in a given fiscal year, give preference to 
    families that occupy substandard housing (including families that 
    are homeless or living in a shelter for homeless families), are 
    paying more than 50 percent of family income for rent, or are 
    involuntarily displaced (including displacement because of 
    disposition of a multifamily housing project under section 1701z-11 
    of title 12) at the time they are seeking assistance under this 
    chapter;
        ``(ii) for any remaining units to be made available for 
    occupancy, give preference in accordance with a system of 
    preferences established by the public housing agency in writing and 
    after public hearing to respond to local housing needs and 
    priorities, which may include (I) assisting very low-income families 
    who either reside in transitional housing assisted under title IV of 
    the Stewart B. McKinney Homeless Assistance Act, or participate in a 
    program designed to provide public assistance recipients with 
    greater access to employment and educational opportunities; (II) 
    assisting families in accordance with subsection (u)(2); (III) 
    assisting families identified by local public agencies involved in 
    providing for the welfare of children as having a lack of adequate 
    housing that is a primary factor in the imminent placement of a 
    child in foster care, or in preventing the discharge of a child from 
    foster care and reunification with his or her family; (IV) assisting 
    youth, upon discharge from foster care, in cases in which return to 
    the family or extended family or adoption is not available; (V) 
    assisting families that include one or more adult members who are 
    employed; and (VI) achieving other objectives of national housing 
    policy as affirmed by Congress; subclause (V) shall be effective 
    only during fiscal year 1995;
        ``(iii) prohibit any individual or family evicted from housing 
    assisted under the chapter by reason of drug-related criminal 
    activity from having a preference under any provision of this 
    subparagraph for 3 years unless the evicted tenant successfully 
    completes a rehabilitation program approved by the agency, except 
    that the agency may waive the application of this clause under 
    standards established by the Secretary (which shall include waiver 
    for any member of a family of an individual prohibited from tenancy 
    under this clause who the agency determines clearly did not 
    participate in and had no knowledge of such criminal activity or 
    when circumstances leading to eviction no longer exist); and
        ``(iv) are designed to ensure that, to the maximum extent 
    feasible, the projects of an agency will include families with a 
    broad range of incomes and will avoid concentrations of low-income 
    and deprived families with serious social problems.''
See Effective and Termination Dates of 1996 Amendments note below.
    Subsec. (k). Pub. L. 104-120, Sec. 9(a)(1), in concluding 
provisions, substituted ``involves any activity'' for ``involves any 
criminal activity'' and ``on or off such premises'' for ``on or near 
such premises''.
    Subsec. (l)(5). Pub. L. 104-120, Sec. 9(a)(2), substituted ``on or 
off such premises'' for ``on or near such premises''.
    Subsec. (l)(7). Pub. L. 104-193 added par. (7).
    Subsec. (o). Pub. L. 104-99, Sec. 402(d)(6)(A)(i), (f), in 
introductory provisions, temporarily substituted ``written system of 
preferences for selection established pursuant to'' for ``preference 
rules specified in''. See Effective and Termination Dates of 1996 
Amendments note below.
    Subsec. (q). Pub. L. 104-120, Sec. 9(b), added subsec. (q).
    Subsec. (r). Pub. L. 104-120, Sec. 9(c), added subsec. (r).
    1994--Subsec. (c)(4)(A)(i). Pub. L. 103-233, Sec. 101(c)(1), 
inserted ``(including displacement because of disposition of a 
multifamily housing project under section 1701z-11 of title 12)'' after 
``displaced''.
    Subsec. (c)(4)(A)(ii). Pub. L. 103-327 added subcl. (V), 
redesignated former subcl. (V) as (VI), and inserted ``subclause (V) 
shall be effective only during fiscal year 1995;'' after semicolon at 
end.
    Subsec. (c)(4)(E). Pub. L. 103-233, Sec. 303, substituted ``500 
units'' for ``250 units''.
    1992--Subsec. (a). Pub. L. 102-550, Sec. 625(a)(2), substituted 
``elderly or disabled families'' for ``the elderly'' in last sentence.
    Subsec. (c)(4)(A). Pub. L. 102-550, Sec. 622(b), substituted 
``designated for occupancy pursuant to section 1437e(a) of this title'' 
for ``specifically designated for elderly families'' in introductory 
provisions.
    Subsec. (c)(4)(A)(i). Pub. L. 102-550, Sec. 112, substituted ``50 
percent'' for ``70 percent'' after ``not less than''.
    Subsec. (c)(4)(F). Pub. L. 102-550, Sec. 682(a), added subpar. (F).
    Subsec. (j)(1). Pub. L. 102-550, Sec. 113(e)(1)(C), which directed 
the substitution of ``indicators for public housing agencies, to the 
extent practicable:'' for ``indicators.'' in fourth sentence, was 
executed by making the substitution for ``indicators:'' to reflect the 
probable intent of Congress.
    Pub. L. 102-550, Sec. 113(e)(1)(A), (B), in introductory provisions, 
inserted ``and resident management corporations'' before period in first 
sentence and after ``agencies'' in third sentence.
    Subsec. (j)(2)(B). Pub. L. 102-550, Sec. 113(a)(2), added subpar. 
(B). Former subpar. (B) redesignated (C).
    Subsec. (j)(2)(C). Pub. L. 102-550, Sec. 113(a)(1), (3), 
redesignated subpar. (B) as (C), substituted ``agency, after reviewing 
the report submitted pursuant to subparagraph (B) and consulting with 
the agency's assessment team. Such agreement shall set forth'' for 
``agency setting forth'' in introductory provisions, and inserted ``To 
the extent the Secretary deems appropriate (taking into account an 
agency's performance under the indicators specified under paragraph 
(1)), such agreement shall also set forth a plan for enhancing resident 
involvement in the management of the public housing agency.'' before 
``The Secretary and the public'' in concluding provisions.
    Subsec. (j)(2)(D). Pub. L. 102-550, Sec. 113(e)(2), added subpar. 
(D).
    Subsec. (j)(3)(A). Pub. L. 102-550, Sec. 113(b)(5), inserted 
concluding provisions.
    Subsec. (j)(3)(A)(i). Pub. L. 102-550, Sec. 113(b)(1), inserted 
``(which may be selected by existing tenants through administrative 
procedures established by the Secretary)'' after ``management agents''.
    Subsec. (j)(3)(A)(iii), (iv). Pub. L. 102-550, Sec. 113(b)(2)-(4), 
added cl. (iii) and redesignated former cl. (iii) as (iv).
    Subsec. (j)(3)(B) to (D). Pub. L. 102-550, Sec. 113(c), added 
subpar. (B) and redesignated former subpars. (B) and (C) as (C) and (D), 
respectively.
    Subsec. (j)(4)(E). Pub. L. 102-550, Sec. 113(d), which directed the 
insertion of ``, including an accounting of the authorized funds that 
have been expended to support such actions'' before semicolon in par. 
(5)(E) of subsec. (j), was executed by making the insertion in par. 
(4)(E) to reflect the probable intent of Congress, because subsec. (j) 
does not contain a par. (5).
    1991--Subsec. (j)(1)(H), (I). Pub. L. 102-139, which directed 
amendment of ``Section 6(j)(1) of the Housing Act of 1937, 42 U.S.C. 
1437d(j)(1) section 502(a) of the National Affordable Housing Act,'' by 
adding ``which shall not exceed the seven factors in the statute, plus 
an additional five'' at the end of subpar. (H) and by adding subpar. 
(I), requiring Secretary to administer evaluation system, reflect in 
weights assigned indicators, and determine status, was executed to 
subsec. (j)(1) of this section, which is section 6 of the United States 
Housing Act of 1937, to reflect the probable intent of Congress.
    Subsec. (p). Pub. L. 102-139 added subsec. (p).
    1990--Subsec. (c)(4)(A). Pub. L. 101-625, Sec. 501, amended subpar. 
(A) generally. Prior to amendment, subpar. (A) read as follows: ``except 
for projects or portions of projects specifically designated for elderly 
families with respect to which the Secretary has determined that 
application of this clause would result in excessive delays in meeting 
the housing needs of such families, the establishment of tenant 
selection criteria which gives preference to families which occupy 
substandard housing, are paying more than 50 percent of family income 
for rent, or are involuntarily displaced at the time they are seeking 
assistance under this chapter and which is designed to assure that, 
within a reasonable period of time, the project will include families 
with a broad range of incomes and will avoid concentrations of lower 
income and deprived families with serious social problems, but (i) this 
shall not permit maintenance of vacancies to await higher income tenants 
where lower income tenants are available and shall not permit public 
housing agencies to select families for residence in an order different 
from the order on the waiting list for the purpose of selecting 
relatively higher income families for residence; and (ii) the public 
housing agency may provide for circumstances in which families who do 
not qualify for any preference established in this subparagraph are 
provided assistance before families who do qualify for such preference, 
except that not more than 10 percent of the families who initially 
receive assistance in any 1-year period (or such shorter period selected 
by the public housing agency before the beginning of its first full year 
subject to this clause) may be families who do not qualify for such 
preference;''.
    Subsec. (c)(4)(D). Pub. L. 101-625, Sec. 572(1), substituted ``low-
income families'' for ``lower income families''.
    Subsec. (c)(4)(E). Pub. L. 101-625, Sec. 502(c)(1), added subpar. 
(E).
    Subsecs. (d), (e). Pub. L. 101-625, Sec. 572(2), substituted ``low-
income housing'' for ``lower income housing'' wherever appearing.
    Subsec. (j). Pub. L. 101-625, Sec. 502(a), amended subsec. (j) 
generally. Prior to amendment, subsec. (j) read as follows: ``On or 
after October 1, 1983, in entering into commitments for the development 
of public housing, the Secretary shall give a priority to projects for 
the construction, acquisition, or acquisition and rehabilitation of 
housing suitable for occupancy by families requiring three or more 
bedrooms.''
    Subsec. (k). Pub. L. 101-625, Sec. 503(a), added concluding 
provisions and struck out former concluding provisions which read as 
follows: ``An agency may exclude from its procedure any grievance 
concerning an eviction or termination of tenancy in any jurisdiction 
which requires that, prior to eviction, a tenant be given a hearing in 
court which the Secretary determines provides the basic elements of due 
process.''
    Subsec. (l)(5). Pub. L. 101-625, Sec. 504, amended par. (5) 
generally. Prior to amendment, par. (5) read as follows: ``provide that 
a public housing tenant, any member of the tenant's household, or a 
guest or other person under the tenant's control shall not engage in 
criminal activity, including drug-related criminal activity, on or near 
public housing premises, while the tenant is a tenant in public housing, 
and such criminal activity shall be cause for termination of tenancy.''
    Subsec. (l)(6). Pub. L. 101-625, Sec. 503(b), added par. (6).
    Subsecs. (n), (o). Pub. L. 101-625, Secs. 505, 506, added subsecs. 
(n) and (o).
    1989--Subsec. (b). Pub. L. 101-144 added subsec. (b).
    1988--Subsec. (a). Pub. L. 100-242, Sec. 170(d)(1), substituted 
``The Secretary'' for ``Secretary'' at beginning.
    Pub. L. 100-242, Sec. 112(b)(2), struck out ``annual'' before 
``contributions''.
    Subsec. (c). Pub. L. 100-242, Sec. 112(b)(2), struck out ``annual'' 
before ``contributions'' in introductory provisions.
    Subsec. (c)(4)(A). Pub. L. 100-628, Sec. 1014(a)(1), inserted cl. 
(i) designation after ``, but'' and added cl. (ii) before semicolon at 
end.
    Pub. L. 100-628, Sec. 1001(b), inserted before semicolon at end 
``and shall not permit public housing agencies to select families for 
residence in an order different from the order on the waiting list for 
the purpose of selecting relatively higher income families for 
residence''.
    Pub. L. 100-242, Sec. 170(d)(2), inserted ``, are paying more than 
50 percent of family income for rent,'' after ``substandard housing'', 
and struck out ``or are paying more than 50 per centum of family income 
for rent'' after ``under this chapter''.
    Subsec. (d). Pub. L. 100-242, Sec. 112(b)(2), struck out ``annual'' 
before ``contributions'' in four places and before ``shelter'' in two 
places.
    Subsec. (g). Pub. L. 100-242, Sec. 112(b)(2), struck out ``annual'' 
before ``contributions'' in introductory provisions.
    Subsec. (h). Pub. L. 100-242, Sec. 116, inserted ``in the 
neighborhood where the public housing agency determines the housing is 
needed'' after ``is'' and ``in such neighborhood'' after 
``rehabilitation''.
    Subsec. (k)(4), (5). Pub. L. 100-242, Sec. 170(d)(3), substituted 
``their'' for ``his''.
    Subsec. (l). Pub. L. 100-690 added par. (5) and concluding 
provisions defining term ``drug-related criminal activity'' for purposes 
of par. (5).
    1985--Subsec. (b). Pub. L. 99-160 struck out subsec. (b) which 
related to cost of construction and equipment of a project, and 
prototype costs.
    1984--Subsec. (a). Pub. L. 98-479, Sec. 204(b)(1), substituted 
``covenants'' for ``convenants''.
    Subsec. (j). Pub. L. 98-479, Sec. 102(b)(4), inserted ``, 
acquisition, or acquisition and rehabilitation'' and substituted 
``families requiring three or more bedrooms'' for ``large families''.
    Subsec. (m). Pub. L. 98-479, Sec. 102(b)(5), substituted ``housing'' 
for ``hearing''.
    1983--Subsec. (c)(4)(A). Pub. L. 98-181, Sec. 203(a), inserted ``or 
are paying more than 50 per centum of family income for rent''.
    Subsec. (f). Pub. L. 98-181, Sec. 214(b), repealed subsec. (f) which 
provided for modification or closeout of housing project.
    Subsecs. (h) to (j). Pub. L. 98-181, Sec. 201(c), added subsecs. (h) 
to (j).
    Subsecs. (k), (l). Pub. L. 98-181, Sec. 204, added subsecs. (k) and 
(l).
    Subsec. (m). Pub. L. 98-181, Sec. 205, added subsec. (m).
    1981--Subsec. (a). Pub. L. 97-35, Sec. 322(c), substituted reference 
to lower income for reference to low-income.
    Subsec. (c). Pub. L. 97-35, Sec. 322(c), (d), substituted provision 
in par. (2) requiring review at least annually for provision requiring 
review at least within two year intervals, or shorter where deemed 
desirable, in par. (4)(A) ``lower income and'' for ``low-income and'', 
and in par. (4)(D) reference to lower income for reference to low-
income.
    Subsecs. (d), (e). Pub. L. 97-35, Sec. 322(c), substituted 
references to lower income for references to low-income wherever 
appearing.
    1980--Subsec. (b). Pub. L. 96-399, Sec. 201(c), inserted exception 
relating to availability of prototype costs for projects to be located 
on Indian reservations or in Alaskan Native villages, and added cl. (8).
    Subsec. (c)(4)(A). Pub. L. 96-399, Sec. 201(e), inserted exception 
relating to application of this clause to projects specifically 
designated for elderly families.
    Subsec. (f). Pub. L. 96-399, Sec. 202(c), inserted ``pursuant to 
section 1437l of this title'' wherever appearing.
    1979--Subsec. (c)(4)(A). Pub. L. 96-153 substituted ``tenant 
selection criteria which gives preference to families which occupy 
substandard housing or are involuntarily displaced at the time they are 
seeking assistance under this chapter and which is designed'' for 
``tenant selection criteria designed''.


                    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.
    Amendment by section 511 of Pub. L. 105-276 effective and applicable 
beginning upon Oct. 21, 1998, see section 511(e) of Pub. L. 105-276, set 
out as a note under section 1437c-1 of this title.
    Amendment by section 514(a)(1), (2)(A) of Pub. L. 105-276 effective 
and applicable beginning upon Oct. 21, 1998, see section 514(g) of Pub. 
L. 105-276, set out as a note under section 1701s of Title 12, Banks and 
Banking.
    Pub. L. 105-276, title V, Sec. 565(b), Oct. 21, 1998, 112 Stat. 
2631, provided that: ``The provisions of, and duties and authorities 
conferred or confirmed by, the amendments made by subsection (a) 
[amending this section] shall apply with respect to any action taken 
before, on, or after the effective date of this Act [probably means the 
general effective date for title V of Pub. L. 105-276 included in 
section 503 of Pub. L. 105-276, set out as an Effective Date of 1998 
Amendment note under section 1437 of this title] and shall apply to any 
receiver appointed for a public housing agency before the date of the 
enactment of this Act [Oct. 21, 1998].''
    Pub. L. 105-276, title V, Sec. 565(e), Oct. 21, 1998, 112 Stat. 
2632, provided that: ``This section [amending this section and section 
1437f of this title and enacting provisions set out as notes under this 
section] shall take effect on, and the amendments made by this section 
are 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

    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 13 of Pub. L. 104-120 provided that:
    ``(a) Applicability.--This Act [enacting section 1490p-2 of this 
title, amending this section, sections 1437e, 1437n, 1479, 1485, 1490p-
2, and 5308 of this title, and sections 1715z-20 and 1721 of Title 12, 
Banks and Banking, enacting provisions set out as notes under sections 
1437f, 5305, and 12805 of this title and sections 1701 and 4101 of Title 
12, and amending provisions set out as a note under section 1707 of 
Title 12] and the amendments made by this Act shall be construed to have 
become effective on October 1, 1995.
    ``(b) Implementation.--The amendments made by sections 9 and 10 
[amending this section and sections 1437e and 1437n of this title] shall 
apply as provided in subsection (a) of this section, notwithstanding the 
effective date of any regulations issued by the Secretary of Housing and 
Urban Development to implement such amendments or any failure by the 
Secretary to issue any such regulations.''
    Amendment by Pub. L. 104-99 effective Jan. 26, 1996, only for fiscal 
years 1996, 1997, and 1998, and to cease to be effective Oct. 21, 1998, 
see section 402(f) of Pub. L. 104-99, as amended, and section 514(f) of 
Pub. L. 105-276, set out as notes under section 1437a of this title.


                    Effective Date of 1992 Amendment

    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 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.


                             Implementation

    Pub. L. 105-276, title V, Sec. 565(d), Oct. 21, 1998, 112 Stat. 
2632, provided that: ``The Secretary may administer the amendments made 
by subsection (a) [amending this section] as necessary to ensure the 
efficient and effective initial implementation of this section [amending 
this section and section 1437f of this title and enacting provisions set 
out as notes under this section].''
    Section 502(c)(2) of Pub. L. 101-625, as amended by Pub. L. 102-550, 
title I, Sec. 130, Oct. 28, 1992, 106 Stat. 3712, provided that: ``The 
Secretary of Housing and Urban Development shall, under the rulemaking 
procedures under section 553 of title 5, United States Code, establish 
guidelines and timetables appropriate to implement the amendment made by 
paragraph (1)(C) [amending this section], taking into account the 
requirements of public housing agencies of different sizes and 
characteristics, to achieve compliance with requirements established by 
such amendment not later than January 1, 1993 for public housing 
agencies with 500 or more units and not later than January 1, 1994 for 
public housing agencies with less than 500 units.''


                               Regulations

    For provisions requiring Secretary of Housing and Urban Development 
to issue regulations necessary to implement amendment to this section by 
section 101(c) of Pub. L. 103-233, see section 101(f) of Pub. L. 103-
233, set out as a note under section 1701z-11 of Title 12, Banks and 
Banking.
    Section 104 of Pub. L. 102-550 provided that: ``Not later than the 
expiration of the 180-day period beginning on the date of the enactment 
of this Act [Oct. 28, 1992], the Secretary of Housing and Urban 
Development shall issue regulations implementing the amendments made by 
sections 501 and 545 of the Cranston-Gonzalez National Affordable 
Housing Act [Pub. L. 101-625, amending this section and section 1437f of 
this title]. The 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) and shall take effect upon 
issuance.''
    Section 503(c) of Pub. L. 101-625 provided that: ``The Secretary of 
Housing and Urban Development shall issue, and publish in the Federal 
Register for comment, proposed rules implementing the amendments made by 
this section [amending this section] not later than the expiration of 
the 60-day period beginning on the date of the enactment of this Act 
[Nov. 28, 1990] and shall issue final rules implementing the amendments 
not later than the expiration of the 180-day period beginning on the 
date of the enactment of this Act.''


   Study of Alternative Methods for Evaluating Public Housing Agencies

    Pub. L. 105-276, title V, Sec. 563, Oct. 21, 1998, 112 Stat. 2624, 
provided that:
    ``(a) In General.--The Secretary of Housing and Urban Development 
shall provide under subsection (e) for a study to be conducted to 
determine the effectiveness of various alternative methods of evaluating 
the performance of public housing agencies and other providers of 
federally assisted housing.
    ``(b) Purposes.--The purposes of the study under this section shall 
be--
        ``(1) to identify and examine various methods of evaluating and 
    improving the performance of public housing agencies in 
    administering public housing and tenant-based rental assistance 
    programs and of other providers of federally assisted housing, which 
    are alternatives to oversight by the Department of Housing and Urban 
    Development; and
        ``(2) to identify specific monitoring and oversight activities 
    currently conducted by the Department of Housing and Urban 
    Development and to evaluate whether such activities should be 
    eliminated, expanded, modified, or transferred to other entities 
    (including governmental and private entities) to increase accuracy 
    and effectiveness and improve monitoring.
    ``(c) Evaluation of Various Performance Evaluation Systems.--To 
carry out the purposes under subsection (b), the study under this 
section shall identify, and analyze the advantages and disadvantages of 
various methods of regulating and evaluating the performance of public 
housing agencies and other providers of federally assisted housing, 
including the following methods:
        ``(1) Current system.--The system pursuant to the United States 
    Housing Act of 1937 [42 U.S.C. 1437 et seq.], including the methods 
    and requirements under such system for reporting, auditing, 
    reviewing, sanctioning, and monitoring of such agencies and housing 
    providers and the public housing management assessment program 
    pursuant to section 6(j) of the United States Housing Act of 1937 
    [42 U.S.C. 1437d(j)].
        ``(2) Accreditation models.--Various models that are based upon 
    accreditation of such agencies and housing providers, subject to the 
    following requirements:
            ``(A) The study shall identify and analyze various models 
        used in other industries and professions for accreditation and 
        determine the extent of their applicability to the programs for 
        public housing and federally assisted housing.
            ``(B) If any accreditation models are determined to be 
        applicable to the public and federally assisted housing 
        programs, the study shall identify appropriate goals, 
        objectives, and procedures for an accreditation program for such 
        agencies and housing providers.
            ``(C) The study shall evaluate the feasibility and merit of 
        establishing an independent accreditation and evaluation entity 
        to assist, supplement, or replace the role of the Department of 
        Housing and Urban Development in assessing and monitoring the 
        performance of such agencies and housing providers.
            ``(D) The study shall identify the necessary and appropriate 
        roles and responsibilities of various entities that would be 
        involved in an accreditation program, including the Department 
        of Housing and Urban Development, the Inspector General of the 
        Department, an accreditation entity, independent auditors and 
        examiners, local entities, and public housing agencies.
            ``(E) The study shall estimate the costs involved in 
        developing and maintaining such an independent accreditation 
        program.
        ``(3) Performance based models.--Various performance-based 
    models, including systems that establish performance goals or 
    targets, assess the compliance with such goals or targets, and 
    provide for incentives or sanctions based on performance relative to 
    such goals or targets.
        ``(4) Local review and monitoring models.--Various models 
    providing for local, resident, and community review and monitoring 
    of such agencies and housing providers, including systems for review 
    and monitoring by local and State governmental bodies and agencies.
        ``(5) Private models.--Various models using private contractors 
    for review and monitoring of such agencies and housing providers.
        ``(6) Other models.--Various models of any other systems that 
    may be more effective and efficient in regulating and evaluating 
    such agencies and housing providers.
    ``(d) Consultation.--The entity that, pursuant to subsection (e), 
carries out the study under this section shall, in carrying out the 
study, consult with individuals and organizations experienced in 
managing public housing, private real estate managers, representatives 
from State and local governments, residents of public housing, families 
and individuals receiving tenant-based assistance, the Secretary of 
Housing and Urban Development, the Inspector General of the Department 
of Housing and Urban Development, and the Comptroller General of the 
United States.
    ``(e) Contract to Conduct Study.--
        ``(1) In general.--Subject to paragraph (2), the Secretary shall 
    enter into a contract, within 90 days of the enactment of this Act 
    [Oct. 21, 1998], with a public or nonprofit private entity to 
    conduct the study under this section, using amounts made available 
    pursuant to subsection (g).
        ``(2) National academy of public administration.--The Secretary 
    shall request the National Academy of Public Administration to enter 
    into the contract under paragraph (1) to conduct the study under 
    this section. If such Academy declines to conduct the study, the 
    Secretary shall carry out such paragraph through other public or 
    nonprofit private entities, selected through a competitive process.
    ``(f) Report.--
        ``(1) Interim report.--The Secretary shall ensure that, not 
    later than the expiration of the 6-month period beginning on the 
    date of the execution of the contract under subsection (e)(1), the 
    entity conducting the study under this section submits to the 
    Congress an interim report describing the actions taken to carry out 
    the study, the actions to be taken to complete the study, and any 
    findings and recommendations available at the time.
        ``(2) Final report.--The Secretary shall ensure that--
            ``(A) not later than the expiration of the 12-month period 
        beginning on the date of the execution of the contract under 
        subsection (e)(1), the study required under this section is 
        completed and a report describing the findings and 
        recommendations as a result of the study is submitted to the 
        Congress; and
            ``(B) before submitting the report under this paragraph to 
        the Congress, the report is submitted to the Secretary, national 
        organizations for public housing agencies, and other appropriate 
        national organizations at such time to provide the Secretary and 
        such agencies an opportunity to review the report and provide 
        written comments on the report, which shall be included together 
        with the report upon submission to the Congress under 
        subparagraph (A).
    ``(g) Effective Date.--This section shall take effect on the date of 
the enactment of this Act [Oct. 21, 1998].''


         References in Other Laws to Preferences for Assistance

    Section 402(d)(6)(D) of Pub. L. 104-99, which provided that certain 
references to preferences for assistance under sections 
1437d(c)(4)(A)(i) and 1437f(d)(1)(A)(i), (o)(3)(B) of this title, as 
such sections existed on the day before Jan. 26, 1996, were to be 
considered to refer to the written system of preferences for selection 
established pursuant to sections 1437d(c)(4)(A) and 1437f(d)(1)(A), 
(o)(3)(B) of this title, respectively, as amended by section 402 of Pub. 
L. 104-99, was repealed by Pub. L. 105-276, title V, Sec. 514(b)(2)(D), 
Oct. 21, 1998, 112 Stat. 2548.


   Inapplicability of Certain 1992 Amendments to Indian Public Housing

    Amendment by sections 622(b) and 625(a)(2) of Pub. L. 102-550 not 
applicable with respect to lower income housing developed or operated 
pursuant to contract between Secretary of Housing and Urban Development 
and Indian housing authority, see section 626 of Pub. L. 102-550, set 
out as a note under section 1437a of this title.


             Report on Training and Certification Standards

    Section 502(b) of Pub. L. 101-625 directed Secretary to submit to 
Congress, not later than 12 months after Nov. 28, 1990, a report 
regarding the feasibility and effectiveness of establishing uniform 
standards for training and certification of executive directors and 
other officers and members of local, regional, and State public housing 
agencies.


                              Applicability

    Section 503(d) of Pub. L. 101-625 provided that: ``Any exclusion of 
grievances by a public housing agency pursuant to a determination or 
waiver by the Secretary (under section 6(k) of the United States Housing 
Act of 1937 [42 U.S.C. 1437d(k)], as such section existed before the 
date of the enactment of this Act [Nov. 28, 1990]) that a jurisdiction 
requires a hearing in court providing the basic elements of due process 
shall be effective after the date of the enactment of this Act only to 
the extent that the exclusion complies with the amendments made by this 
section, except that any such waiver provided before the date of the 
enactment of this Act shall remain in effect until the earlier of the 
effective date of the final rules implementing the amendments made by 
this section or 180 days after the date of the enactment.''


  Report on Impact of Public Housing Lease and Grievance Regulation on 
   Ability of Public Housing Agencies To Take Action Against Tenants 
                         Engaging in Drug Crimes

    Section 5103 of Pub. L. 100-690 provided that: ``The Secretary of 
Housing and Urban Development shall submit to the Congress a report on 
the impact of the implementation of the public housing tenancy and 
administrative grievance procedure regulations issued under section 6(k) 
of the United States Housing Act of 1937 (42 U.S.C. 1437d(k)) on the 
ability of public housing agencies to evict or take other appropriate 
action against tenants engaging in criminal activity, especially with 
respect to the manufacture, sale, distribution, use, or possession of 
controlled substances (as defined in section 102 of the Controlled 
Substances Act (21 U.S.C. 802)). The report shall be submitted not later 
than 12 months after the date of the enactment of this Act [Nov. 18, 
1988].''


                             Indian Housing

    Section 1014(a)(2) of Pub. L. 100-628 provided that: ``In accordance 
with section 201(b)(2) of the United States Housing Act of 1937 [former 
section 1437aa(b)(2) of this title], the amendments made by paragraph 
(1) [amending this section] shall also apply to public housing developed 
or operated pursuant to a contract between the Secretary of Housing and 
Urban Development and an Indian housing authority.''


         Study of Payments in Lieu of Taxes; Report to Congress

    Pub. L. 95-128, title II, Sec. 201(g), Oct. 12, 1977, 91 Stat. 1129, 
provided that the Secretary of Housing and Urban Development conduct a 
study of payment in lieu of taxes made under subsec. (d) of this section 
and report to the Congress on the status and adequacy of such payments 
not later than 12 months after Oct. 12, 1977.

                  Section Referred to in Other Sections

    This section is referred to in sections 1437c-1, 1437f, 1437g, 
1437j, 1437n, 1437s, 1437u, 1437v, 1437w, 1437y, 1437z, 1437z-7, 
1437bbb-1, 1437bbb-5, 11907, 12705, 12742, 12755, 12899d, 13603 of this 
title; title 12 sections 24, 1701z-11.
