
From the U.S. Code Online via GPO Access
[wais.access.gpo.gov]
[Laws in effect as of January 23, 2000]
[Document not affected by Public Laws enacted between
  January 23, 2000 and December 4, 2001]
[CITE: 42USC1437n]

 
                 TITLE 42--THE PUBLIC HEALTH AND WELFARE
 
                      CHAPTER 8--LOW-INCOME HOUSING
 
            SUBCHAPTER I--GENERAL PROGRAM OF ASSISTED HOUSING
 
Sec. 1437n. Eligibility for assisted housing


(a) Income eligibility for public housing

                   (1) Income mix within projects

        A public housing agency may establish and utilize income-mix 
    criteria for the selection of residents for dwelling units in public 
    housing projects, subject to the requirements of this section.

                         (2) PHA income mix

        (A) \1\ Targeting.--Except as provided in paragraph (4), of the 
    public housing dwelling units of a public housing agency made 
    available for occupancy in any fiscal year by eligible families, not 
    less than 40 percent shall be occupied by families whose incomes at 
    the time of commencement of occupancy do not exceed 30 percent of 
    the area median income, as determined by the Secretary with 
    adjustments for smaller and larger families; except that the 
    Secretary may establish income ceilings higher or lower than 30 
    percent of the area median income on the basis of the Secretary's 
    findings that such variations are necessary because of unusually 
    high or low family incomes.
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    \1\ So in original. No subpar. (B) has been enacted.
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       (3) Prohibition of concentration of low-income families

        (A) Prohibition

            A public housing agency may not, in complying with the 
        requirements under paragraph (2), concentrate very low-income 
        families (or other families with relatively low incomes) in 
        public housing dwelling units in certain public housing projects 
        or certain buildings within projects. The Secretary shall review 
        the income and occupancy characteristics of the public housing 
        projects and the buildings of such projects of such agencies to 
        ensure compliance with the provisions of this paragraph and 
        paragraph (2).

        (B) Deconcentration

            (i) In general

                A public housing agency shall submit with its annual 
            public housing agency plan under section 1437c-1 of this 
            title an admissions policy designed to provide for 
            deconcentration of poverty and income-mixing by bringing 
            higher income tenants into lower income projects and lower 
            income tenants into higher income projects. This clause may 
            not be construed to impose or require any specific income or 
            racial quotas for any project or projects.
            (ii) Incentives

                In implementing the policy under clause (i), a public 
            housing agency may offer incentives for eligible families 
            having higher incomes to occupy dwelling unit in projects 
            predominantly occupied by eligible families having lower 
            incomes, and provide for occupancy of eligible families 
            having lower incomes in projects predominantly occupied by 
            eligible families having higher incomes.
            (iii) Family choice

                Incentives referred to in clause (ii) may be made 
            available by a public housing agency only in a manner that 
            allows for the eligible family to have the sole discretion 
            in determining whether to accept the incentive and an agency 
            may not take any adverse action toward any eligible family 
            for choosing not to accept an incentive and occupancy of a 
            project described in clause (i)(II),\2\ Provided, That the 
            skipping of a family on a waiting list to reach another 
            family to implement the policy under clause (i) shall not be 
            considered an adverse action. An agency implementing an 
            admissions policy under this subparagraph shall implement 
            the policy in a manner that does not prevent or interfere 
            with the use of site-based waiting lists authorized under 
            section 1437d(s) \3\ of this title.
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    \2\ So in original. Cl. (i) does not contain subclauses.
    \3\ See References in Text note below.
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            (4) Fungibility with tenant-based assistance

        (A) Authority

            Except as provided under subparagraph (D), the number of 
        public housing dwelling units that a public housing agency shall 
        otherwise make available in accordance with paragraph (2)(A) to 
        comply with the percentage requirement under such paragraph for 
        a fiscal year shall be reduced by the credit number for the 
        agency under subparagraph (B).

        (B) Credit for exceeding tenant-based assistance targeting 
                requirement

            Subject to subparagraph (C), the credit number under this 
        subparagraph for a public housing agency for a fiscal year shall 
        be the number by which--
                (i) the aggregate number of qualified families who, in 
            such fiscal year, are initially provided tenant-based 
            assistance under section 1437f of this title by the agency; 
            exceeds
                (ii) the number of qualified families that is required 
            for the agency to comply with the percentage requirement 
            under subsection (b)(1) of this section for such fiscal 
            year.

        (C) Limitations on credit number

            The credit number under subparagraph (B) for a public 
        housing agency for a fiscal year may not in any case exceed the 
        lesser of--
                (i) the number of dwelling units that is equivalent to 
            10 percent of the aggregate number of families initially 
            provided tenant-based assistance under section 1437f of this 
            title by the agency in such fiscal year; or
                (ii) the number of public housing dwelling units of the 
            agency that--
                    (I) are in projects that are located in census 
                tracts having a poverty rate of 30 percent or more; and
                    (II) are made available for occupancy during such 
                fiscal year and are actually filled only by families 
                whose incomes at the time of commencement of such 
                occupancy exceed 30 percent of the area median income, 
                as determined by the Secretary with adjustments for 
                smaller and larger families.

        (D) Fungibility floor

            Notwithstanding any authority under subparagraph (A), of the 
        public housing dwelling units of a public housing agency made 
        available for occupancy in any fiscal year by eligible families, 
        not less than 30 percent shall be occupied by families whose 
        incomes at the time of commencement of occupancy do not exceed 
        30 percent of the area median income, as determined by the 
        Secretary with adjustments for smaller and larger families.

        (E) Qualified family

            For purposes of this paragraph, the term ``qualified 
        family'' means a family having an income described in subsection 
        (b)(1) of this section.

(b) Income eligibility for tenant-based section 1437f assistance

                           (1) In general

        Of the families initially provided tenant-based assistance under 
    section 1437f of this title by a public housing agency in any fiscal 
    year, not less than 75 percent shall be families whose incomes do 
    not exceed 30 percent of the area median income, as determined by 
    the Secretary with adjustments for smaller and larger families; 
    except that the Secretary may establish income ceilings higher or 
    lower than 30 percent of the area median income on the basis of the 
    Secretary's findings that such variations are necessary because of 
    unusually high or low family incomes.

              (2) Jurisdictions served by multiple PHAs

        In the case of any 2 or more public housing agencies that 
    administer tenant-based assistance under section 1437f of this title 
    with respect solely to identical geographical areas, such agencies 
    shall be treated as a single public housing agency for purposes of 
    paragraph (1).

(c) Income eligibility for project-based section 1437f assistance

                      (1) Pre-1981 act projects

        Not more than 25 percent of the dwelling units that were 
    available for occupancy under section 8 [42 U.S.C. 1437f] housing 
    assistance payments contracts under this chapter before October 1, 
    1981, and which will be leased on or after October 1, 1981, shall be 
    available for leasing by low-income families other than very low-
    income families.

                     (2) Post-1981 act projects

        Not more than 15 percent of the dwelling units which become 
    available for occupancy under section 8 [42 U.S.C. 1437f] housing 
    assistance payments contracts under this chapter on or after October 
    1, 1981, shall be available for leasing by low-income families other 
    than very low-income families.

                            (3) Targeting

        For each project assisted under a contract for project-based 
    assistance, of the dwelling units that become available for 
    occupancy in any fiscal year that are assisted under the contract, 
    not less than 40 percent shall be available for leasing only by 
    families whose incomes at the time of commencement of occupancy do 
    not exceed 30 percent of the area median income, as determined by 
    the Secretary with adjustments for smaller and larger families; 
    except that the Secretary may establish income ceilings higher or 
    lower than 30 percent of the area median income on the basis of the 
    Secretary's findings that such variations are necessary because of 
    unusually high or low family incomes.

                     (4) Prohibition of skipping

        In developing admission procedures implementing paragraphs (1), 
    (2), and (3), the Secretary shall prohibit project owners from 
    selecting 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. Nothing in this paragraph or 
    this subsection may be construed to prevent an owner of housing 
    assisted under a contract for project-based assistance from 
    establishing a preference for occupancy in such housing for families 
    containing a member who is employed.

                            (5) Exception

        The limitations established in paragraphs (1), (2), and (3) 
    shall not apply to dwelling units made available under project-based 
    contracts under section 1437f of this title for the purpose of 
    preventing displacement, or ameliorating the effects of 
    displacement.

                           (6) Definition

        For purposes of this subsection, the term ``project-based 
    assistance'' means assistance under any of the following programs:
            (A) The new construction or substantial rehabilitation 
        program under section 1437f(b)(2) of this title (as in effect 
        before October 1, 1983).
            (B) The property disposition program under section 1437f(b) 
        of this title (as in effect before the effective date under 
        section 503(a) of the Quality Housing and Work Responsibility 
        Act of 1998).
            (C) The loan management set-aside program under subsections 
        (b) and (v) of section 1437f of this title.
            (D) The project-based certificate program under section 
        1437f(d)(2) of this title.
            (E) The moderate rehabilitation program under section 
        1437f(e)(2) of this title (as in effect before October 1, 1991).
            (F) The low-income housing preservation program under Low-
        Income Housing Preservation and Resident Homeownership Act of 
        1990 [12 U.S.C. 4101 et seq.] or the provisions of the Emergency 
        Low Income Housing Preservation Act of 1987 (as in effect before 
        November 28, 1990).
            (G) Section 1437f of this title (as in effect before the 
        effective date under section 503(a) of the Quality Housing and 
        Work Responsibility Act of 1998), following conversion from 
        assistance under section 1701s of title 12 or section 1715z-
        1(f)(2) of title 12.

(d) Establishment of different standards

    Notwithstanding subsection (a)(2) or (b)(1) of this section, if 
approved by the Secretary, a public housing agency may for good cause 
establish and implement, in accordance with the public housing agency 
plan, an admission standard other than the standard under such 
subsection.

(e) Repealed. Pub. L. 105-276, title V, Sec. 576(d)(2), Oct. 21, 1998, 
        112 Stat. 2640

(f) Ineligibility of individuals convicted of manufacturing or producing 
        methamphetamine on the premises

    Notwithstanding any other provision of law, a public housing agency 
shall establish standards for occupancy in public housing dwelling units 
and assistance under section 1437f of this title that--
        (1) permanently prohibit occupancy in any public housing 
    dwelling unit by, and assistance under section 1437f of this title 
    for, any person who has been convicted of manufacturing or otherwise 
    producing methamphetamine on the premises in violation of any 
    Federal or State law; and
        (2) immediately and permanently terminate the tenancy in any 
    public housing unit of, and the assistance under section 1437f of 
    this title for, any person who is convicted of manufacturing or 
    otherwise producing methamphetamine on the premises in violation of 
    any Federal or State law.

(Sept. 1, 1937, ch. 896, title I, Sec. 16, as added Pub. L. 97-35, title 
III, Sec. 323, Aug. 13, 1981, 95 Stat. 404; amended Pub. L. 98-181, 
title II, Sec. 213, Nov. 30, 1983, 97 Stat. 1184; Pub. L. 100-242, title 
I, Secs. 103, 112(b)(8), Feb. 5, 1988, 101 Stat. 1822, 1824; renumbered 
title I, Pub. L. 100-358, Sec. 5, June 29, 1988, 102 Stat. 681; Pub. L. 
100-628, title X, Sec. 1001(a), Nov. 7, 1988, 102 Stat. 3263; Pub. L. 
101-625, title V, Secs. 511, 572(1), Nov. 28, 1990, 104 Stat. 4194, 
4236; Pub. L. 102-550, title I, Sec. 105, Oct. 28, 1992, 106 Stat. 3684; 
Pub. L. 104-99, title IV, Sec. 402(d)(6)(A)(v), Jan. 26, 1996, 110 Stat. 
42; Pub. L. 104-120, Sec. 9(d), Mar. 28, 1996, 110 Stat. 837; Pub. L. 
104-330, title V, Sec. 501(b)(7), Oct. 26, 1996, 110 Stat. 4042; Pub. L. 
105-276, title IV, Sec. 428, title V, Secs. 513(a), 576(d)(2), Oct. 21, 
1998, 112 Stat. 2511, 2543, 2640; Pub. L. 105-277, div. A, Sec. 123, 
Oct. 21, 1998, 112 Stat. 2681-546; Pub. L. 106-74, title II, Sec. 205, 
Oct. 20, 1999, 113 Stat. 1069.)

                       References in Text

    Section 1437d(s) of this title, referred to in subsec. 
(a)(3)(B)(iii), probably should be a reference to section 1437d(r) of 
this title. Pub. L. 105-276, title V, Secs. 525, 575(d), 576(d)(1)(B), 
Oct. 21, 1998, 112 Stat. 2568, 2637, 2640, amended section 1437d by 
adding a subsec. (s) relating to site-based waiting lists and a subsec. 
(t) relating to authority to require access to criminal records and then 
redesignated those subsecs. (s) and (t) as (r) and (s), respectively.
    Section 503(a) of the Quality Housing and Work Responsibility Act of 
1998, referred to in subsec. (c)(6)(B), (G), is section 503(a) of Pub. 
L. 105-276, which is set out as an Effective Date of 1998 Amendment note 
under section 1437 of this title.
    The Low-Income Housing Preservation and Resident Homeownership Act 
of 1990, referred to in subsec. (c)(6)(F), is title II of Pub. L. 100-
242, Feb. 5, 1988, 101 Stat. 1877, as amended, which is classified 
principally to chapter 42 (Sec. 4101 et seq.) of Title 12, Banks and 
Banking. For complete classification of this Act to the Code, see Short 
Title note set out under section 4101 of Title 12 and Tables.
    The Emergency Low Income Housing Preservation Act of 1987, referred 
to in subsec. (c)(6)(F), is title II of Pub. L. 100-242, Feb. 5, 1988, 
101 Stat. 1877, which, as amended by Pub. L. 101-625, is known as the 
Low-Income Housing Preservation and Resident Homeownership Act of 1990. 
Subtitles A and B of title II, which were formerly set out as a note 
under section 1715l of Title 12, Banks and Banking, and which amended 
section 1715z-6 of Title 12, were amended generally by Pub. L. 101-625 
and are classified to subchapter I (Sec. 4101 et seq.) of chapter 42 of 
Title 12. Subtitles C and D of title II amended section 1715z-15 of 
Title 12 and sections 1437f, 1472, 1485, and 1487 of this title. Another 
subtitle C of title II of Pub. L. 100-242, as added by Pub. L. 102-550, 
is classified generally to subchapter II (Sec. 4141 et seq.) of chapter 
42 of Title 12. For complete classification of this Act to the Code, see 
Short Title note set out under section 4101 of Title 12 and Tables.

                          Codification

    October 1, 1981, referred to in subsec. (c)(1), (2), was in the 
original ``the effective date of the Housing and Community Development 
Amendments of 1981'' and ``such effective date'', meaning the effective 
date of subtitle A of title III of Pub. L. 97-35, Aug. 13, 1981, 95 
Stat. 384, which was generally effective Oct. 1, 1981. See Effective 
Date note below.


                               Amendments

    1999--Subsecs. (a)(2)(A), (c)(3). Pub. L. 106-74, Sec. 205(1), 
inserted before the period at end ``; except that the Secretary may 
establish income ceilings higher or lower than 30 percent of the area 
median income on the basis of the Secretary's findings that such 
variations are necessary because of unusually high or low family 
incomes''.
    1998--Subsecs. (a) to (d). Pub. L. 105-276, Sec. 513(a), as amended 
by Pub. L. 105-277, Sec. 123, added subsecs. (a) to (d) and struck out 
former subsecs. (a) to (d). Prior to amendment, subsec. (a) related to 
percentage availability under contracts prior to Oct. 1, 1981, subsec. 
(b) related to percentage availability under contracts on or after Oct. 
1, 1981, subsec. (c) related to admission procedures implementing 
subsec. (b), and subsec. (d) related to applicability of admission 
procedures limitations.
    Subsec. (e). Pub. L. 105-276, Sec. 576(d)(2), struck out heading and 
text of subsec. (e), which directed public housing agency to establish 
standards to prohibit occupancy by and terminate tenancy of any person 
illegally using controlled substance or whose use of controlled 
substance or abuse of alcohol might interfere with peaceful enjoyment of 
premises by other residents, and authorized agency to consider 
rehabilitation of person in making determination to deny occupancy.
    Subsec. (f). Pub. L. 105-276, Sec. 428, added subsec. (f).
    1996--Pub. L. 104-120, Sec. 9(d)(1), substituted ``Eligibility'' for 
``Income eligibility'' in section catchline.
    Subsec. (c). Pub. L. 104-99 temporarily substituted ``the written 
system of preferences for selection established by the public housing 
agency pursuant to section 1437d(c)(4)(A)'' for ``the system of 
preferences established by the agency pursuant to section 
1437d(c)(4)(A)(ii)''. See Effective and Termination Dates of 1996 
Amendments note below.
    Subsec. (d). Pub. L. 104-330, Sec. 501(b)(7)(A), redesignated par. 
(1) as entire subsec. and struck out par. (2) which read as follows: 
``The limitations established in subsections (a) and (b) of this section 
shall not apply to dwelling units assisted by Indian public housing 
agencies, to scattered site public housing dwelling units sold or 
intended to be sold to public housing tenants under section 1437c(h) of 
this title..''
    Subsec. (e). Pub. L. 104-120, Sec. 9(d)(2), added subsec. (e).
    Subsec. (e)(3). Pub. L. 104-330, Sec. 501(b)(7)(B), struck out 
heading and text of par. (3). Text read as follows: ``This subsection 
does not apply to any dwelling unit assisted by an Indian housing 
authority.''
    1992--Subsec. (c). Pub. L. 102-550, Sec. 105(a), substituted ``very 
low-income families and shall'' for ``very low-income families, shall'' 
and ``. In developing such admission procedures, the Secretary shall'' 
for ``, and shall'' and inserted ``; except that such prohibition shall 
not apply with respect to families selected for occupancy in public 
housing under the system of preferences established by the agency 
pursuant to section 1437d(c)(4)(A)(ii) of this title'' after ``higher 
income families for residence''.
    Subsec. (d)(2). Pub. L. 102-550, Sec. 105(b), inserted before period 
at end ``, to scattered site public housing dwelling units sold or 
intended to be sold to public housing tenants under section 1437c(h) of 
this title.''
    1990--Subsec. (a). Pub. L. 101-625, Sec. 572(1), substituted ``low-
income families'' for ``lower income families''.
    Subsec. (b). Pub. L. 101-625, Sec. 572(1), substituted ``low-income 
families'' for ``lower income families'' in par. (1).
    Pub. L. 101-625, Sec. 511, designated existing provisions as par. 
(1), substituted ``15 percent'' for ``5 per centum'', and added par. 
(2).
    Subsecs. (c), (d)(1). Pub. L. 101-625, Sec. 572(1), substituted 
``low-income families'' for ``lower income families'' wherever 
appearing.
    1988--Subsec. (b). Pub. L. 100-242, Sec. 112(b)(8), struck out 
``annual'' before ``contributions''.
    Subsec. (c). Pub. L. 100-628 substituted ``shall establish an 
appropriate specific percentage of lower income families other than 
very-low income families that may be assisted in each assisted housing 
program'' for ``and shall establish, as appropriate, differing 
percentage limitations on admission of lower income families in separate 
assisted housing programs'' and inserted before period at end of first 
sentence ``, and shall prohibit project owners from selecting 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. 103, added subsec. (c).
    Subsec. (d). Pub. L. 100-242, Sec. 103, added subsec. (d).
    1983--Subsec. (a). Pub. L. 98-181 increased to 25 from 10 the 
percentage of dwelling units available for leasing.


                    Effective Date of 1998 Amendments

    Pub. L. 105-277, div. A, Sec. 123, Oct. 21, 1998, 112 Stat. 2681-
546, provided that the amendment made by section 123 of Pub. L. 105-277 
is effective upon enactment of Pub. L. 105-276.
    Amendment by title V of Pub. L. 105-276 effective and applicable 
beginning upon Oct. 1, 1999, except as otherwise provided, with 
provision that Secretary may implement amendment before such date, 
except to extent that such amendment provides otherwise, and with 
savings provision, see section 503 of Pub. L. 105-276, set out as a note 
under section 1437 of this title.
    Pub. L. 105-276, title V, Sec. 513(b), Oct. 21, 1998, 112 Stat. 
2547, provided that: ``This section [amending this section] shall take 
effect on, and the amendments under 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.
    Amendment by Pub. L. 104-120 to be construed to have become 
effective Oct. 1, 1995, notwithstanding the effective date of any 
regulations issued by Secretary of Housing and Urban Development to 
implement amendments by sections 9 and 10 of Pub. L. 104-120 or any 
failure by Secretary to issue any such regulations, see section 13 of 
Pub. L. 104-120, set out as a note under section 1437d of this title.
    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

    Section effective Oct. 1, 1981, see section 371 of Pub. L. 97-35, 
set out as a note under section 3701 of Title 12, Banks and Banking.

                  Section Referred to in Other Sections

    This section is referred to in sections 1437c-1, 1437e, 1437r, 
1437bbb-4 of this title; title 12 section 1715z-1a.
