Law Publications

PUBLIC LAW 114–201—JULY 29, 2016

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HOUSING OPPORTUNITY THROUGH
MODERNIZATION ACT OF 2016

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130 STAT. 782

PUBLIC LAW 114–201—JULY 29, 2016

Public Law 114–201
114th Congress
An Act
July 29, 2016
[H.R. 3700]
Housing
Opportunity
Through
Modernization
Act of 2016.
42 USC 1437
note.

To provide housing opportunities in the United States through modernization of
various housing programs, and for other purposes.

Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

(a) SHORT TITLE.—This Act may be cited as the ‘‘Housing Opportunity Through Modernization Act of 2016’’.
(b) TABLE OF CONTENTS.—The table of contents for this Act
is as follows:
Sec. 1. Short title and table of contents.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.
Sec.

TITLE I—SECTION 8 RENTAL ASSISTANCE AND PUBLIC HOUSING
101. Inspection of dwelling units.
102. Income reviews.
103. Limitation on public housing tenancy for over-income families.
104. Limitation on eligibility for assistance based on assets.
105. Units owned by public housing agencies.
106. PHA project-based assistance.
107. Establishment of fair market rent.
108. Collection of utility data.
109. Public housing Capital and Operating Funds.
110. Family unification program for children aging out of foster care.
111. Public housing heating guidelines.
112. Use of vouchers for manufactured housing.
113. Preference for United States citizens or nationals.
114. Exception to public housing agency resident board member requirement.

TITLE II—RURAL HOUSING
Sec. 201. Delegation of guaranteed rural housing loan approval.
Sec. 202. Guaranteed underwriting user fee.
TITLE III—FHA MORTGAGE INSURANCE FOR CONDOMINIUMS
Sec. 301. Modification of FHA requirements for mortgage insurance for condominiums.

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TITLE IV—HOUSING REFORMS FOR THE HOMELESS AND FOR VETERANS
Sec. 401. Definition of geographic area for Continuum of Care Program.
Sec. 402. Inclusion of public housing agencies and local redevelopment authorities
in emergency solutions grants.
Sec. 403. Special assistant for Veterans Affairs in the Department of Housing and
Urban Development.
Sec. 404. Annual supplemental report on veterans homelessness.
Sec. 405. Reopening of public comment period for continuum of care program regulations.
TITLE V—MISCELLANEOUS
Sec. 501. Inclusion of Disaster Housing Assistance Program in certain fraud and
abuse prevention measures.
Sec. 502. Energy efficiency requirements under Self-Help Homeownership Opportunity program.

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PUBLIC LAW 114–201—JULY 29, 2016

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Sec. 503. Data exchange standardization for improved interoperability.
TITLE VI—REPORTS
Sec. 601. Report on interagency family economic empowerment strategies.
TITLE VII—HOUSING OPPORTUNITIES FOR PERSONS WITH AIDS
Sec. 701. Formula and terms for allocations to prevent homelessness for individuals
living with HIV or AIDS.

TITLE I—SECTION 8 RENTAL
ASSISTANCE AND PUBLIC HOUSING

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SEC. 101. INSPECTION OF DWELLING UNITS.

(a) IN GENERAL.—Section 8(o)(8) of the United States Housing
Act of 1937 (42 U.S.C. 1437f(o)(8)) is amended—
(1) by striking subparagraph (A) and inserting the following
new subparagraph:
‘‘(A) INITIAL INSPECTION.—
‘‘(i) IN GENERAL.—For each dwelling unit for which
a housing assistance payment contract is established
under this subsection, the public housing agency (or
other entity pursuant to paragraph (11)) shall inspect
the unit before any assistance payment is made to
determine whether the dwelling unit meets the housing
quality standards under subparagraph (B), except as
provided in clause (ii) or (iii) of this subparagraph.
‘‘(ii) CORRECTION OF NON-LIFE-THREATENING CONDITIONS.—In the case of any dwelling unit that is determined, pursuant to an inspection under clause (i), not
to meet the housing quality standards under subparagraph (B), assistance payments may be made for the
unit notwithstanding subparagraph (C) if failure to
meet such standards is a result only of non-life-threatening conditions, as such conditions are established
by the Secretary. A public housing agency making
assistance payments pursuant to this clause for a
dwelling unit shall, 30 days after the beginning of
the period for which such payments are made, withhold
any assistance payments for the unit if any deficiency
resulting in noncompliance with the housing quality
standards has not been corrected by such time. The
public housing agency shall recommence assistance
payments when such deficiency has been corrected,
and may use any payments withheld to make assistance payments relating to the period during which
payments were withheld.
‘‘(iii) USE OF ALTERNATIVE INSPECTION METHOD FOR
INTERIM PERIOD.—In the case of any property that
within the previous 24 months has met the requirements of an inspection that qualifies as an alternative
inspection method pursuant to subparagraph (E), a
public housing agency may authorize occupancy before
the inspection under clause (i) has been completed,
and may make assistance payments retroactive to the
beginning of the lease term after the unit has been
determined pursuant to an inspection under clause
(i) to meet the housing quality standards under

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Time period.

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130 STAT. 784

subparagraph (B). This clause may not be construed
to exempt any dwelling unit from compliance with
the requirements of subparagraph (D).’’;
(2) by redesignating subparagraph (G) as subparagraph
(H); and
(3) by inserting after subparagraph (F) the following new
subparagraph:
‘‘(G) ENFORCEMENT OF HOUSING QUALITY STANDARDS.—
‘‘(i) DETERMINATION OF NONCOMPLIANCE.—A
dwelling unit that is covered by a housing assistance
payments contract under this subsection shall be
considered, for purposes of subparagraphs (D) and (F),
to be in noncompliance with the housing quality standards under subparagraph (B) if—
‘‘(I) the public housing agency or an inspector
authorized by the State or unit of local government
determines upon inspection of the unit that the
unit fails to comply with such standards;
‘‘(II) the agency or inspector notifies the owner
of the unit in writing of such failure to comply;
and
‘‘(III) the failure to comply is not corrected—
‘‘(aa) in the case of any such failure that
is a result of life-threatening conditions,
within 24 hours after such notice has been
provided; and
‘‘(bb) in the case of any such failure that
is a result of non-life-threatening conditions,
within 30 days after such notice has been provided or such other reasonable longer period
as the public housing agency may establish.
‘‘(ii) WITHHOLDING OF ASSISTANCE AMOUNTS
DURING CORRECTION.—The public housing agency may
withhold assistance amounts under this subsection
with respect to a dwelling unit for which a notice
pursuant to clause (i)(II), of failure to comply with
housing quality standards under subparagraph (B) as
determined pursuant to an inspection conducted under
subparagraph (D) or (F), has been provided. If the
unit is brought into compliance with such housing
quality standards during the periods referred to in
clause (i)(III), the public housing agency shall recommence assistance payments and may use any amounts
withheld during the correction period to make assistance payments relating to the period during which
payments were withheld.
‘‘(iii) ABATEMENT OF ASSISTANCE AMOUNTS.—The
public housing agency shall abate all of the assistance
amounts under this subsection with respect to a
dwelling unit that is determined, pursuant to clause
(i) of this subparagraph, to be in noncompliance with
housing quality standards under subparagraph (B).
Upon completion of repairs by the public housing
agency or the owner sufficient so that the dwelling
unit complies with such housing quality standards,
the agency shall recommence payments under the

Contracts.

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Time periods.

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housing assistance payments contract to the owner
of the dwelling unit.
‘‘(iv) NOTIFICATION.—If a public housing agency
providing assistance under this subsection abates
rental assistance payments pursuant to clause (iii) with
respect to a dwelling unit, the agency shall, upon
commencement of such abatement—
‘‘(I) notify the tenant and the owner of the
dwelling unit that—
‘‘(aa) such abatement has commenced; and
‘‘(bb) if the dwelling unit is not brought
into compliance with housing quality standards within 60 days after the effective date
of the determination of noncompliance under
clause (i) or such reasonable longer period as
the agency may establish, the tenant will have
to move; and
‘‘(II) issue the tenant the necessary forms to
allow the tenant to move to another dwelling unit
and transfer the rental assistance to that unit.
‘‘(v) PROTECTION OF TENANTS.—An owner of a
dwelling unit may not terminate the tenancy of any
tenant because of the withholding or abatement of
assistance pursuant to this subparagraph. During the
period that assistance is abated pursuant to this
subparagraph, the tenant may terminate the tenancy
by notifying the owner.
‘‘(vi) TERMINATION OF LEASE OR ASSISTANCE PAYMENTS CONTRACT.—If assistance amounts under this
section for a dwelling unit are abated pursuant to
clause (iii) and the owner does not correct the noncompliance within 60 days after the effective date of
the determination of noncompliance under clause (i),
or such other reasonable longer period as the public
housing agency may establish, the agency shall terminate the housing assistance payments contract for the
dwelling unit.
‘‘(vii) RELOCATION.—
‘‘(I) LEASE OF NEW UNIT.—The agency shall
provide the family residing in such a dwelling
unit a period of 90 days or such longer period
as the public housing agency determines is reasonably necessary to lease a new unit, beginning upon
termination of the contract, to lease a new residence with tenant-based rental assistance under
this section.
‘‘(II) AVAILABILITY OF PUBLIC HOUSING UNITS.—
If the family is unable to lease such a new residence during such period, the public housing
agency shall, at the option of the family, provide
such family a preference for occupancy in a
dwelling unit of public housing that is owned or
operated by the agency that first becomes available
for occupancy after the expiration of such period.
‘‘(III) ASSISTANCE IN FINDING UNIT.—The
public housing agency may provide assistance to
the family in finding a new residence, including

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Time period.

Time period.

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130 STAT. 786

Determination.

Contracts.

Notice.
Regulations.
42 USC 1437f
note.

PUBLIC LAW 114–201—JULY 29, 2016

use of up to two months of any assistance amounts
withheld or abated pursuant to clause (ii) or (iii),
respectively, for costs directly associated with
relocation of the family to a new residence, which
shall include security deposits as necessary and
may include reimbursements for reasonable
moving expenses incurred by the household, as
established by the Secretary. The agency may
require that a family receiving assistance for a
security deposit shall remit, to the extent of such
assistance, the amount of any security deposit
refunds made by the owner of the dwelling unit
for which the lease was terminated.
‘‘(viii) TENANT-CAUSED DAMAGES.—If a public
housing agency determines that any damage to a
dwelling unit that results in a failure of the dwelling
unit to comply with housing quality standards under
subparagraph (B), other than any damage resulting
from ordinary use, was caused by the tenant, any
member of the tenant’s household, or any guest or
other person under the tenant’s control, the agency
may waive the applicability of this subparagraph,
except that this clause shall not exonerate a tenant
from any liability otherwise existing under applicable
law for damages to the premises caused by such tenant.
‘‘(ix) APPLICABILITY.—This subparagraph shall
apply to any dwelling unit for which a housing assistance payments contract is entered into or renewed
after the date of the effectiveness of the regulations
implementing this subparagraph.’’.
(b) EFFECTIVE DATE.—The Secretary of Housing and Urban
Development shall issue notice or regulations to implement subsection (a) of this section and such subsection shall take effect
upon such issuance.
SEC. 102. INCOME REVIEWS.

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(a) INCOME REVIEWS FOR PUBLIC HOUSING AND SECTION 8 PROGRAMS.—Section 3 of the United States Housing Act of 1937 (42
U.S.C. 1437a) is amended—
(1) in subsection (a)—
(A) in the second sentence of paragraph (1), by striking
‘‘at least annually’’ and inserting ‘‘pursuant to paragraph
(6)’’; and
(B) by adding at the end the following new paragraphs:
‘‘(6) REVIEWS OF FAMILY INCOME.—
‘‘(A) FREQUENCY.—Reviews of family income for purposes of this section shall be made—
‘‘(i) in the case of all families, upon the initial
provision of housing assistance for the family;
‘‘(ii) annually thereafter, except as provided in
paragraph (1) with respect to fixed-income families;
‘‘(iii) upon the request of the family, at any time
the income or deductions (under subsection (b)(5)) of
the family change by an amount that is estimated
to result in a decrease of 10 percent (or such lower
amount as the Secretary may, by notice, establish,

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or permit the public housing agency or owner to establish) or more in annual adjusted income; and
‘‘(iv) at any time the income or deductions (under
subsection (b)(5)) of the family change by an amount
that is estimated to result in an increase of 10 percent
or more in annual adjusted income, or such other
amount as the Secretary may by notice establish,
except that any increase in the earned income of a
family shall not be considered for purposes of this
clause (except that earned income may be considered
if the increase corresponds to previous decreases under
clause (iii)), except that a public housing agency or
owner may elect not to conduct such review in the
last three months of a certification period.
‘‘(B) IN GENERAL.—Reviews of family income for purposes of this section shall be subject to the provisions
of section 904 of the Stewart B. McKinney Homeless Assistance Amendments Act of 1988 (42 U.S.C. 3544).
‘‘(7) CALCULATION OF INCOME.—
‘‘(A) USE OF CURRENT YEAR INCOME.—In determining
family income for initial occupancy or provision of housing
assistance pursuant to clause (i) of paragraph (6)(A) or
pursuant to reviews pursuant to clause (iii) or (iv) of such
paragraph, a public housing agency or owner shall use
the income of the family as estimated by the agency or
owner for the upcoming year.
‘‘(B) USE OF PRIOR YEAR INCOME.—In determining
family income for annual reviews pursuant to paragraph
(6)(A)(ii), a public housing agency or owner shall, except
as otherwise provided in this paragraph and paragraph
(1), use the income of the family as determined by the
agency or owner for the preceding year, taking into consideration any redetermination of income during such prior
year pursuant to clause (iii) or (iv) of paragraph (6)(A).
‘‘(C) OTHER INCOME.—In determining the income for
any family based on the prior year’s income, with respect
to prior year calculations of income not subject to subparagraph (B), a public housing agency or owner may make
other adjustments as it considers appropriate to reflect
current income.
‘‘(D) SAFE HARBOR.—A public housing agency or owner
may, to the extent such information is available to the
public housing agency or owner, determine the family’s
income prior to the application of any deductions based
on timely income determinations made for purposes of other
means-tested Federal public assistance programs (including
the program for block grants to States for temporary assistance for needy families under part A of title IV of the
Social Security Act, a program for Medicaid assistance
under a State plan approved under title XIX of the Social
Security Act, and the supplemental nutrition assistance
program (as such term is defined in section 3 of the Food
and Nutrition Act of 2008 (7 U.S.C. 2012))). The Secretary
shall, in consultation with other appropriate Federal agencies, develop electronic procedures to enable public housing
agencies and owners to have access to such benefit determinations made by other means-tested Federal programs

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Consultation.
Procedures.

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Deadline.
Time period.
Effective date.

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Definition.
Criteria.
Consultation.

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that the Secretary determines to have comparable reliability. Exchanges of such information shall be subject
to the same limitations and tenant protections provided
under section 904 of the Stewart B. McKinney Homeless
Assistance Act Amendments of 1988 (42 U.S.C. 3544) with
respect to information obtained under the requirements
of section 303(i) of the Social Security Act (42 U.S.C. 503(i)).
‘‘(E) ELECTRONIC INCOME VERIFICATION.—The Secretary shall develop a mechanism for disclosing information
to a public housing agency for the purpose of verifying
the employment and income of individuals and families
in accordance with section 453(j)(7)(E) of the Social Security
Act (42 U.S.C. 653(j)(7)(E)), and shall ensure public housing
agencies have access to information contained in the ‘Do
Not Pay’ system established by section 5 of the Improper
Payments Elimination and Recovery Improvement Act of
2012 (Public Law 112–248; 126 Stat. 2392).
‘‘(F) PHA AND OWNER COMPLIANCE.—A public housing
agency or owner may not be considered to fail to comply
with this paragraph or paragraph (6) due solely to any
de minimis errors made by the agency or owner in calculating family incomes.’’;
(2) by striking subsections (d) and (e); and
(3) by redesignating subsection (f) as subsection (d).
(b) CERTIFICATION REGARDING HARDSHIP EXCEPTION TO MINIMUM MONTHLY RENT.—Not later than the expiration of the 6month period beginning on the date of the enactment of this Act,
the Secretary of Housing and Urban Development shall submit
to the Congress a certification that the hardship and tenant protection provisions in clause (i) of section 3(a)(3)(B) of the United
States Housing Act of 1937 (42 U.S.C. 1437a(a)(3)(B)(i)) are being
enforced at such time and that the Secretary will continue to
provide due consideration to the hardship circumstances of persons
assisted under relevant programs of this Act.
(c) INCOME; ADJUSTED INCOME.—Section 3(b) of the United
States Housing Act of 1937 (42 U.S.C. 1437a(b)) is amended by
striking paragraphs (4) and (5) and inserting the following new
paragraphs:
‘‘(4) INCOME.—The term ‘income’ means, with respect to
a family, income received from all sources by each member
of the household who is 18 years of age or older or is the
head of household or spouse of the head of the household,
plus unearned income by or on behalf of each dependent who
is less than 18 years of age, as determined in accordance
with criteria prescribed by the Secretary, in consultation with
the Secretary of Agriculture, subject to the following requirements:
‘‘(A) INCLUDED AMOUNTS.—Such term includes recurring gifts and receipts, actual income from assets, and
profit or loss from a business.
‘‘(B) EXCLUDED AMOUNTS.—Such term does not
include—
‘‘(i) any imputed return on assets, except to the
extent that net family assets exceed $50,000, except
that such amount (as it may have been previously
adjusted) shall be adjusted for inflation annually by

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the Secretary in accordance with an inflationary index
selected by the Secretary;
‘‘(ii) any amounts that would be eligible for exclusion under section 1613(a)(7) of the Social Security
Act (42 U.S.C. 1382b(a)(7));
‘‘(iii) deferred disability benefits from the Department of Veterans Affairs that are received in a lump
sum amount or in prospective monthly amounts;
‘‘(iv) any expenses related to aid and attendance
under section 1521 of title 38, United States Code,
to veterans who are in need of regular aid and attendance; and
‘‘(v) exclusions from income as established by the
Secretary by regulation or notice, or any amount
required by Federal law to be excluded from consideration as income.
‘‘(C) EARNED INCOME OF STUDENTS.—Such term does
not include—
‘‘(i) earned income, up to an amount as the Secretary may by regulation establish, of any dependent
earned during any period that such dependent is
attending school or vocational training on a full-time
basis; or
‘‘(ii) any grant-in-aid or scholarship amounts
related to such attendance used—
‘‘(I) for the cost of tuition or books; or
‘‘(II) in such amounts as the Secretary may
allow, for the cost of room and board.
‘‘(D) EDUCATIONAL SAVINGS ACCOUNTS.—Income shall
be determined without regard to any amounts in or from,
or any benefits from, any Coverdell education savings
account under section 530 of the Internal Revenue Code
of 1986 or any qualified tuition program under section
529 of such Code.
‘‘(E) RECORDKEEPING.—The Secretary may not require
a public housing agency or owner to maintain records of
any amounts excluded from income pursuant to this
subparagraph.
‘‘(5) ADJUSTED INCOME.—The term ‘adjusted income’ means,
with respect to a family, the amount (as determined by the
public housing agency or owner) of the income of the members
of the family residing in a dwelling unit or the persons on
a lease, after any deductions from income as follows:
‘‘(A) ELDERLY AND DISABLED FAMILIES.—$525 in the
case of any family that is an elderly family or a disabled
family.
‘‘(B) MINORS, STUDENTS, AND PERSONS WITH DISABILITIES.—$480 for each member of the family residing in
the household (other than the head of the household or
his or her spouse) who is less than 18 years of age or
is attending school or vocational training on a full-time
basis, or who is 18 years of age or older and is a person
with disabilities.
‘‘(C) CHILD CARE.—Any reasonable child care expenses
necessary to enable a member of the family to be employed
or to further his or her education.

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Determination.

Definition.

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Regulation.

Notification.

Consultation.
Comment period.

Procedures.

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Determination.
Applicability.
Regulation.

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‘‘(D) HEALTH AND MEDICAL EXPENSES.—The amount,
if any, by which 10 percent of annual family income is
exceeded by the sum of—
‘‘(i) in the case of any elderly or disabled family,
any unreimbursed health and medical care expenses;
and
‘‘(ii) any unreimbursed reasonable attendant care
and auxiliary apparatus expenses for each handicapped
member of the family, if determined necessary by the
public housing agency or owner to enable any member
of such family to be employed.
The Secretary shall, by regulation, provide hardship exemptions to the requirements of this subparagraph and
subparagraph (C) for impacted families who demonstrate
an inability to pay calculated rents because of financial
hardship. Such regulations shall include a requirement
to notify tenants regarding any changes to the determination of adjusted income pursuant to such subparagraphs
based on the determination of the family’s claim of financial
hardship exemptions required by the preceding sentence.
Such regulations shall be promulgated in consultation with
tenant organizations, industry participants, and the Secretary of Health and Human Services, with an adequate
comment period provided for interested parties.
‘‘(E) PERMISSIVE DEDUCTIONS.—Such additional deductions as a public housing agency may, at its discretion,
establish, except that the Secretary shall establish procedures to ensure that such deductions do not materially
increase Federal expenditures.
The Secretary shall annually calculate the amounts of the
deductions under subparagraphs (A) and (B), as such amounts
may have been previously calculated, by applying an inflationary factor as the Secretary shall, by regulation, establish,
except that the actual deduction determined for each year shall
be established by rounding such amount to the next lowest
multiple of $25.’’.
(d) HOUSING CHOICE VOUCHER PROGRAM.—Section 8(o) of the
United States Housing Act of 1937 (42 U.S.C. 1437f(o)) is
amended—
(1) in paragraph (1)(D), by inserting before the period at
the end the following: ‘‘, except that a public housing agency
may establish a payment standard of not more than 120 percent
of the fair market rent where necessary as a reasonable
accommodation for a person with a disability, without approval
of the Secretary. A public housing agency may use a payment
standard that is greater than 120 percent of the fair market
rent as a reasonable accommodation for a person with a disability, but only with the approval of the Secretary. In connection with the use of any increased payment standard established or approved pursuant to either of the preceding two
sentences as a reasonable accommodation for a person with
a disability, the Secretary may not establish additional requirements regarding the amount of adjusted income paid by such
person for rent’’; and
(2) in paragraph (5)—
(A) in the paragraph heading, by striking ‘‘ANNUAL
REVIEW’’ and inserting ‘‘REVIEWS’’;

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(B) in subparagraph (A)—
(i) by striking ‘‘the provisions of’’ and inserting
‘‘paragraphs (1), (6), and (7) of section 3(a) and to’’;
and
(ii) by striking ‘‘and shall be conducted’’ and all
that follows through the end of the subparagraph and
inserting a period; and
(C) in subparagraph (B), by striking the second sentence.
(e) ENHANCED VOUCHER PROGRAM.—Section 8(t)(1)(D) of the
United States Housing Act of 1937 (42 U.S.C. 1437f(t)(1)(D)) is
amended by striking ‘‘income’’ each place such term appears and
inserting ‘‘annual adjusted income’’.
(f) PROJECT-BASED HOUSING.—Paragraph (3) of section 8(c) of
the United States Housing Act of 1937 (42 U.S.C. 1437f(c)(3)) is
amended by striking the last sentence.
(g) IMPACT ON PUBLIC HOUSING REVENUES.—
(1) ADJUSTMENTS TO OPERATING FORMULA.—If the Secretary
of Housing and Urban Development determines that the
application of subsections (a) through (e) of this section results
in a material and disproportionate reduction in the rental
income of certain public housing agencies during the first year
in which such subsections are implemented, the Secretary may
make appropriate adjustments in the formula income for such
year of those agencies experiencing such a reduction.
(2) HUD REPORTS ON REVENUE AND COST IMPACT.—In each
of the first two years after the first year in which subsections
(a) through (e) are implemented, the Secretary of Housing
and Urban Development shall submit a report to Congress
identifying and calculating the impact of changes made by
such subsections and section 104 of this Act on the revenues
and costs of operating public housing units, the voucher program for rental assistance under section 8 of the United States
Housing Act of 1937, and the program under such section
8 for project-based rental assistance. If such report identifies
a material reduction in the net income of public housing agencies nationwide or a material increase in the costs of funding
the voucher program or the project-based assistance program,
the Secretary shall include in such report recommendations
for legislative changes to reduce or eliminate such a reduction.
(h) EFFECTIVE DATE.—The Secretary of Housing and Urban
Development shall issue notice or regulations to implement this
section and this section shall take effect after such issuance, except
that this section may only take effect upon the commencement
of a calendar year.
(i) STUDY ON IMPACT ON ELDERLY AND DISABLED FAMILIES
OF DECREASED DEDUCTIONS IN INCOME.—
(1) STUDY.—The Secretary of Housing and Urban Development shall conduct a study to determine the impacts, on rents
paid by elderly and disabled individuals and families assisted
under the section 8 rental assistance and public housing programs under the United States Housing Act of 1937 (42 U.S.C.
1437 et seq.), of any decreases in the amounts of any deductions
from income (for purposes of section 3(b) of such Act (42 U.S.C.
1437a(b))), as compared to such deductions under such section
3(b) as in effect before the effectiveness of this section, resulting
from the amendments made by this section.

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42 USC 1437a
note.
Determination.

Time periods.

Recommendations.

Notice.
Regulations.
42 USC 1437a
note.

Determination.

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(2) REPORT.—The Secretary shall submit to the Congress
a report setting forth the results of the study conducted pursuant to paragraph (1) not later than the expiration of the 12month period beginning on the date of the enactment of this
Act.
(3) EFFECTIVE DATE.—Notwithstanding subsection (h) of
this section, this subsection shall take effect on the date of
the enactment of this Act.

Time period.

SEC. 103. LIMITATION ON PUBLIC HOUSING TENANCY FOR OVERINCOME FAMILIES.

Regulations.

Deadline.

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Determination.

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Subsection (a) of section 16 of the United States Housing Act
of 1937 (42 U.S.C. 1437n(a)) is amended by adding at the end
the following new paragraph:
‘‘(5) LIMITATIONS ON TENANCY FOR OVER-INCOME FAMILIES.—
‘‘(A) LIMITATIONS.—Except as provided in subparagraph (D), in the case of any family residing in a dwelling
unit of public housing whose income for the most recent
two consecutive years, as determined pursuant to income
reviews conducted pursuant to section 3(a)(6), has exceeded
the applicable income limitation under subparagraph (C),
the public housing agency shall—
‘‘(i) notwithstanding any other provision of this
Act, charge such family as monthly rent for the unit
occupied by such family an amount equal to the greater
of—
‘‘(I) the applicable fair market rental established under section 8(c) for a dwelling unit in
the same market area of the same size; or
‘‘(II) the amount of the monthly subsidy provided under this Act for the dwelling unit, which
shall include any amounts from the Operating
Fund and Capital Fund under section 9 used for
the unit, as determined by the agency in accordance with regulations that the Secretary shall
issue to carry out this subclause; or
‘‘(ii) terminate the tenancy of such family in public
housing not later than 6 months after the income determination described in subparagraph (A).
‘‘(B) NOTICE.—In the case of any family residing in
a dwelling unit of public housing whose income for a year
has exceeded the applicable income limitation under
subparagraph (C), upon the conclusion of such year the
public housing agency shall provide written notice to such
family of the requirements under subparagraph (A).
‘‘(C) INCOME LIMITATION.—The income limitation under
this subparagraph shall be 120 percent of the median
income for the area, as determined by the Secretary with
adjustments for smaller and larger families, except that
the Secretary may establish income limitations higher or
lower than 120 percent of such median income on the
basis of the Secretary’s findings that such variations are
necessary because of prevailing levels of construction costs,
or unusually high or low family incomes, vacancy rates,
or rental costs.

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PUBLIC LAW 114–201—JULY 29, 2016

130 STAT. 793

‘‘(D) EXCEPTION.—Subparagraph (A) shall not apply
to a family occupying a dwelling unit in public housing
pursuant to paragraph (5) of section 3(a) (42 U.S.C.
1437a(a)(5)).
‘‘(E) REPORTS ON OVER-INCOME FAMILIES AND WAITING
LISTS.—The Secretary shall require that each public
housing agency shall—
‘‘(i) submit a report annually, in a format required
by the Secretary, that specifies—
‘‘(I) the number of families residing, as of the
end of the year for which the report is submitted,
in public housing administered by the agency who
had incomes exceeding the applicable income
limitation under subparagraph (C); and
‘‘(II) the number of families, as of the end
of such year, on the waiting lists for admission
to public housing projects of the agency; and
‘‘(ii) make the information reported pursuant to
clause (i) publicly available.’’.

Public
information.

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SEC. 104. LIMITATION ON ELIGIBILITY FOR ASSISTANCE BASED ON
ASSETS.

Section 16 of the United States Housing Act of 1937 (42 U.S.C.
1437n) is amended by inserting after subsection (d) the following
new subsection:
‘‘(e) ELIGIBILITY FOR ASSISTANCE BASED ON ASSETS.—
‘‘(1) LIMITATION ON ASSETS.—Subject to paragraph (3) and
notwithstanding any other provision of this Act, a dwelling
unit assisted under this Act may not be rented and assistance
under this Act may not be provided, either initially or at
each recertification of family income, to any family—
‘‘(A) whose net family assets exceed $100,000, as such
amount is adjusted annually by applying an inflationary
factor as the Secretary considers appropriate; or
‘‘(B) who has a present ownership interest in, a legal
right to reside in, and the effective legal authority to sell,
real property that is suitable for occupancy by the family
as a residence, except that the prohibition under this
subparagraph shall not apply to—
‘‘(i) any property for which the family is receiving
assistance under subsection (y) or (o)(12) of section
8 of this Act;
‘‘(ii) any person that is a victim of domestic
violence; or
‘‘(iii) any family that is offering such property for
sale.
‘‘(2) NET FAMILY ASSETS.—
‘‘(A) IN GENERAL.—For purposes of this subsection, the
term ‘net family assets’ means, for all members of the
household, the net cash value of all assets after deducting
reasonable costs that would be incurred in disposing of
real property, savings, stocks, bonds, and other forms of
capital investment. Such term does not include interests
in Indian trust land, equity in property for which the
family is receiving assistance under subsection (y) or (o)(12)
of section 8, equity accounts in homeownership programs

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Determination.

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of the Department of Housing and Urban Development,
or Family Self Sufficiency accounts.
‘‘(B) EXCLUSIONS.—Such term does not include—
‘‘(i) the value of personal property, except for items
of personal property of significant value, as the Secretary may establish or the public housing agency may
determine;
‘‘(ii) the value of any retirement account;
‘‘(iii) real property for which the family does not
have the effective legal authority necessary to sell such
property;
‘‘(iv) any amounts recovered in any civil action
or settlement based on a claim of malpractice, negligence, or other breach of duty owed to a member
of the family and arising out of law, that resulted
in a member of the family being disabled;
‘‘(v) the value of any Coverdell education savings
account under section 530 of the Internal Revenue
Code of 1986 or any qualified tuition program under
section 529 of such Code; and
‘‘(vi) such other exclusions as the Secretary may
establish.
‘‘(C) TRUST FUNDS.—In cases in which a trust fund
has been established and the trust is not revocable by,
or under the control of, any member of the family or household, the value of the trust fund shall not be considered
an asset of a family if the fund continues to be held in
trust. Any income distributed from the trust fund shall
be considered income for purposes of section 3(b) and any
calculations of annual family income, except in the case
of medical expenses for a minor.
‘‘(3) SELF-CERTIFICATION.—
‘‘(A) NET FAMILY ASSETS.—A public housing agency
or owner may determine the net assets of a family, for
purposes of this section, based on a certification by the
family that the net assets of such family do not exceed
$50,000, as such amount is adjusted annually by applying
an inflationary factor as the Secretary considers appropriate.
‘‘(B) NO CURRENT REAL PROPERTY OWNERSHIP.—A
public housing agency or owner may determine compliance
with paragraph (1)(B) based on a certification by the family
that such family does not have any current ownership
interest in any real property at the time the agency or
owner reviews the family’s income.
‘‘(C) STANDARDIZED FORMS.—The Secretary may
develop standardized forms for the certifications referred
to in subparagraphs (A) and (B).
‘‘(4) COMPLIANCE FOR PUBLIC HOUSING DWELLING UNITS.—
When recertifying family income with respect to families
residing in public housing dwelling units, a public housing
agency may, in the discretion of the agency and only pursuant
to a policy that is set forth in the public housing agency
plan under section 5A for the agency, choose not to enforce
the limitation under paragraph (1).
‘‘(5) ENFORCEMENT.—When recertifying the income of a
family residing in a dwelling unit assisted under this Act,

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130 STAT. 795

a public housing agency or owner may choose not to enforce
the limitation under paragraph (1) or may establish exceptions
to such limitation based on eligibility criteria, but only pursuant
to a policy that is set forth in the public housing agency
plan under section 5A for the agency or under a policy adopted
by the owner. Eligibility criteria for establishing exceptions
may provide for separate treatment based on family type and
may be based on different factors, such as age, disability,
income, the ability of the family to find suitable alternative
housing, and whether supportive services are being provided.
‘‘(6) AUTHORITY TO DELAY EVICTIONS.—In the case of a
family residing in a dwelling unit assisted under this Act who
does not comply with the limitation under paragraph (1), the
public housing agency or project owner may delay eviction
or termination of the family based on such noncompliance for
a period of not more than 6 months.
‘‘(7) VERIFYING INCOME.—
‘‘(A) Beginning in fiscal year 2018, the Secretary shall
require public housing agencies to require each applicant
for, or recipient of, benefits under this Act to provide
authorization by the applicant or recipient (or by any other
person whose income or resources are material to the determination of the eligibility of the applicant or recipient
for such benefits) for the public housing agency to obtain
(subject to the cost reimbursement requirements of section
1115(a) of the Right to Financial Privacy Act) from any
financial institution (within the meaning of section 1101(1)
of such Act) any financial record (within the meaning of
section 1101(2) of such Act) held by the institution with
respect to the applicant or recipient (or any such other
person) whenever the public housing agency determines
the record is needed in connection with a determination
with respect to such eligibility or the amount of such benefits.
‘‘(B) Notwithstanding section 1104(a)(1) of the Right
to Financial Privacy Act, an authorization provided by an
applicant or recipient (or any other person whose income
or resources are material to the determination of the eligibility of the applicant or recipient) pursuant to subparagraph (A) of this paragraph shall remain effective until
the earliest of—
‘‘(i) the rendering of a final adverse decision on
the applicant’s application for eligibility for benefits
under this Act;
‘‘(ii) the cessation of the recipient’s eligibility for
benefits under this Act; or
‘‘(iii) the express revocation by the applicant or
recipient (or such other person referred to in subparagraph (A)) of the authorization, in a written notification
to the Secretary.
‘‘(C)(i) An authorization obtained by the public housing
agency pursuant to this paragraph shall be considered
to meet the requirements of the Right to Financial Privacy
Act for purposes of section 1103(a) of such Act, and need
not be furnished to the financial institution, notwithstanding section 1104(a) of such Act.

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Effective date.
Records.
Determination.

Notification.

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PUBLIC LAW 114–201—JULY 29, 2016
‘‘(ii) The certification requirements of section 1103(b)
of the Right to Financial Privacy Act shall not apply to
requests by the public housing agency pursuant to an
authorization provided under this clause.
‘‘(iii) A request by the public housing agency pursuant
to an authorization provided under this clause is deemed
to meet the requirements of section 1104(a)(3) of the Right
to Financial Privacy Act and the flush language of section
1102 of such Act.
‘‘(iv) The public housing agency shall inform any person
who provides authorization pursuant to this paragraph
of the duration and scope of the authorization.
‘‘(D) If an applicant for, or recipient of, benefits under
this Act (or any such other person referred to in subparagraph (A)) refuses to provide, or revokes, any authorization
made by the applicant or recipient for the public housing
agency to obtain from any financial institution any financial
record, the public housing agency may, on that basis, determine that the applicant or recipient is ineligible for benefits
under this title.’’.

Notification.

SEC. 105. UNITS OWNED BY PUBLIC HOUSING AGENCIES.

Definition.

Paragraph (11) of section 8(o) of the United States Housing
Act of 1937 (42 U.S.C. 1437f(o)(11)) is amended—
(1) by striking ‘‘(11) LEASING OF UNITS OWNED BY PHA.—
If’’ and inserting the following:
‘‘(11) LEASING OF UNITS OWNED BY PHA.—
‘‘(A) INSPECTIONS AND RENT DETERMINATIONS.—If’’; and
(2) by adding at the end the following new subparagraph:
‘‘(B) UNITS OWNED BY PHA.—For purposes of this subsection, the term ‘owned by a public housing agency’ means,
with respect to a dwelling unit, that the dwelling unit
is in a project that is owned by such agency, by an entity
wholly controlled by such agency, or by a limited liability
company or limited partnership in which such agency (or
an entity wholly controlled by such agency) holds a controlling interest in the managing member or general partner.
A dwelling unit shall not be deemed to be owned by a
public housing agency for purposes of this subsection
because the agency holds a fee interest as ground lessor
in the property on which the unit is situated, holds a
security interest under a mortgage or deed of trust on
the unit, or holds a non-controlling interest in an entity
which owns the unit or in the managing member or general
partner of an entity which owns the unit.’’.

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SEC. 106. PHA PROJECT-BASED ASSISTANCE.

(a) IN GENERAL.—Paragraph (13) of section 8(o) of the United
States Housing Act of 1937 (42 U.S.C. 1437f(o)(13)) is amended—
(1) by striking ‘‘structure’’ each place such term appears
and inserting ‘‘project’’;
(2) by striking subparagraph (B) and inserting the following
new subparagraph:
‘‘(B) PERCENTAGE LIMITATION.—
‘‘(i) IN GENERAL.—Subject to clause (ii), a public
housing agency may use for project-based assistance
under this paragraph not more than 20 percent of
the authorized units for the agency.

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130 STAT. 797

‘‘(ii) EXCEPTION.—A public housing agency may use
up to an additional 10 percent of the authorized units
for the agency for project-based assistance under this
paragraph, to provide units that house individuals and
families that meet the definition of homeless under
section 103 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11302), that house families with
veterans, that provide supportive housing to persons
with disabilities or elderly persons, or that are located
in areas where vouchers under this subsection are
difficult to use, as specified in subparagraph (D)(ii)(II).
Any units of project-based assistance that are attached
to units previously subject to federally required rent
restrictions or receiving another type of long-term
housing subsidy provided by the Secretary shall not
count toward the percentage limitation under clause
(i) of this subparagraph. The Secretary may, by regulation, establish additional categories for the exception
under this clause.’’;
(3) by striking subparagraph (D) and inserting the following
new subparagraph:
‘‘(D) INCOME-MIXING REQUIREMENT.—
‘‘(i) IN GENERAL.—Except as provided in clause
(ii), not more than the greater of 25 dwelling units
or 25 percent of the dwelling units in any project
may be assisted under a housing assistance payment
contract for project-based assistance pursuant to this
paragraph. For purposes of this subparagraph, the
term ‘project’ means a single building, multiple contiguous buildings, or multiple buildings on contiguous
parcels of land.
‘‘(ii) EXCEPTIONS.—
‘‘(I) CERTAIN FAMILIES.—The limitation under
clause (i) shall not apply to dwelling units assisted
under a contract that are exclusively made available to elderly families or to households eligible
for supportive services that are made available
to the assisted residents of the project, according
to standards for such services the Secretary may
establish.
‘‘(II) CERTAIN AREAS.—With respect to areas
in which tenant-based vouchers for assistance
under this subsection are difficult to use, as determined by the Secretary, and with respect to census
tracts with a poverty rate of 20 percent or less,
clause (i) shall be applied by substituting ‘40 percent’ for ‘25 percent’, and the Secretary may, by
regulation, establish additional conditions.
‘‘(III) CERTAIN CONTRACTS.—The limitation
under clause (i) shall not apply with respect to
contracts or renewal of contracts under which a
greater percentage of the dwelling units in a
project were assisted under a housing assistance
payment contract for project-based assistance
pursuant to this paragraph on the date of the
enactment of the Housing Opportunity Through
Modernization Act of 2016.

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Definition.

Determination.
Applicability.
Regulations.

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130 STAT. 798

PUBLIC LAW 114–201—JULY 29, 2016
‘‘(IV) CERTAIN PROPERTIES.—Any units of
project-based assistance under this paragraph that
are attached to units previously subject to federally
required rent restrictions or receiving other
project-based assistance provided by the Secretary
shall not count toward the percentage limitation
imposed by this subparagraph (D).
‘‘(iii) ADDITIONAL MONITORING AND OVERSIGHT
REQUIREMENTS.—The Secretary may establish additional requirements for monitoring and oversight of
projects in which more than 40 percent of the dwelling
units are assisted under a housing assistance payment
contract for project-based assistance pursuant to this
paragraph.’’;
(4) by striking subparagraph (F) and inserting the following
new subparagraph:
‘‘(F) CONTRACT TERM.—
‘‘(i) TERM.—A housing assistance payment contract
pursuant to this paragraph between a public housing
agency and the owner of a project may have a term
of up to 20 years, subject to—
‘‘(I) the availability of sufficient appropriated
funds for the purpose of renewing expiring contracts for assistance payments, as provided in
appropriation Acts and in the agency’s annual contributions contract with the Secretary, provided
that in the event of insufficient appropriated funds,
payments due under contracts under this paragraph shall take priority if other cost-saving measures that do not require the termination of an
existing contract are available to the agency; and
‘‘(II) compliance with the inspection requirements under paragraph (8), except that the agency
shall not be required to make biennial inspections
of each assisted unit in the development.
‘‘(ii) ADDITION OF ELIGIBLE UNITS.—Subject to the
limitations of subparagraphs (B) and (D), the agency
and the owner may add eligible units within the same
project to a housing assistance payments contract at
any time during the term thereof without being subject
to any additional competitive selection procedures.
‘‘(iii) HOUSING UNDER CONSTRUCTION OR RECENTLY
CONSTRUCTED.—An agency may enter into a housing
assistance payments contract with an owner for any
unit that does not qualify as existing housing and
is under construction or recently has been constructed
whether or not the agency has executed an agreement
to enter into a contract with the owner, provided that
the owner demonstrates compliance with applicable
requirements prior to execution of the housing assistance payments contract. This clause shall not subject
a housing assistance payments contract for existing
housing under this paragraph to such requirements
or otherwise limit the extent to which a unit may
be assisted as existing housing.
‘‘(iv) ADDITIONAL CONDITIONS.—The contract may
specify additional conditions, including with respect

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130 STAT. 799

to continuation, termination, or expiration, and shall
specify that upon termination or expiration of the contract without extension, each assisted family may elect
to use its assistance under this subsection to remain
in the same project if its unit complies with the inspection requirements under paragraph (8), the rent for
the unit is reasonable as required by paragraph (10)(A),
and the family pays its required share of the rent
and the amount, if any, by which the unit rent
(including the amount allowed for tenant-based utilities) exceeds the applicable payment standard.’’;
(5) in subparagraph (G), by striking ‘‘15 years’’ and
inserting ‘‘20 years’’;
(6) by striking subparagraph (I) and inserting the following
new subparagraph:
‘‘(I) RENT ADJUSTMENTS.—A housing assistance payments contract pursuant to this paragraph entered into
after the date of the enactment of the Housing Opportunity
Through Modernization Act of 2016 shall provide for annual
rent adjustments upon the request of the owner, except
that—
‘‘(i) by agreement of the parties, a contract may
allow a public housing agency to adjust the rent for
covered units using an operating cost adjustment factor
established by the Secretary pursuant to section 524(c)
of the Multifamily Assisted Housing Reform and
Affordability Act of 1997 (which shall not result in
a negative adjustment), in which case the contract
may require an additional adjustment, if requested,
up to the reasonable rent periodically during the term
of the contract, and shall require such an adjustment,
if requested, upon extension pursuant to subparagraph
(G);
‘‘(ii) the adjusted rent shall not exceed the maximum rent permitted under subparagraph (H);
‘‘(iii) the contract may provide that the maximum
rent permitted for a dwelling unit shall not be less
than the initial rent for the dwelling unit under the
initial housing assistance payments contract covering
the units; and
‘‘(iv) the provisions of subsection (c)(2)(C) shall not
apply.’’;
(7) in subparagraph (J)—
(A) in the first sentence—
(i) by striking ‘‘shall’’ and inserting ‘‘may’’; and
(ii) by inserting before the period the following:
‘‘or may permit owners to select applicants from sitebased waiting lists as specified in this subparagraph’’;
(B) by striking the third sentence and inserting the
following: ‘‘The agency or owner may establish preferences
or criteria for selection for a unit assisted under this paragraph that are consistent with the public housing agency
plan for the agency approved under section 5A and that
give preference to families who qualify for voluntary services, including disability-specific services, offered in
conjunction with assisted units.’’; and

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Procedures.

Disclosure.

Notification.
Public
information.

Notice.
Regulations.
42 USC 1437f
note.

PUBLIC LAW 114–201—JULY 29, 2016

(C) by striking the fifth and sixth sentences and
inserting the following: ‘‘A public housing agency may
establish and utilize procedures for owner-maintained sitebased waiting lists, under which applicants may apply
at, or otherwise designate to the public housing agency,
the project or projects in which they seek to reside, except
that all eligible applicants on the waiting list of an agency
for assistance under this subsection shall be permitted
to place their names on such separate list, subject to policies and procedures established by the Secretary. All such
procedures shall comply with title VI of the Civil Rights
Act of 1964, the Fair Housing Act, section 504 of the
Rehabilitation Act of 1973, and other applicable civil rights
laws. The owner or manager of a project assisted under
this paragraph shall not admit any family to a dwelling
unit assisted under a contract pursuant to this paragraph
other than a family referred by the public housing agency
from its waiting list, or a family on a site-based waiting
list that complies with the requirements of this subparagraph. A public housing agency shall disclose to each
applicant all other options in the selection of a project
in which to reside that are provided by the public housing
agency and are available to the applicant.’’;
(8) in subparagraph (M)(ii), by inserting before the period
at the end the following: ‘‘relating to funding other than housing
assistance payments’’; and
(9) by adding at the end the following new subparagraphs:
‘‘(N) STRUCTURE OWNED BY AGENCY.—A public housing
agency engaged in an initiative to improve, develop, or
replace a public housing property or site may attach assistance to an existing, newly constructed, or rehabilitated
structure in which the agency has an ownership interest
or which the agency has control of without following a
competitive process, provided that the agency has notified
the public of its intent through its public housing agency
plan and subject to the limitations and requirements of
this paragraph.
‘‘(O) SPECIAL PURPOSE VOUCHERS.—A public housing
agency that administers vouchers authorized under subsection (o)(19) or (x) of this section may provide such assistance in accordance with the limitations and requirements
of this paragraph, without additional requirements for
approval by the Secretary.’’.
(b) EFFECTIVE DATE.—The Secretary of Housing and Urban
Development shall issue notice or regulations to implement subsection (a) of this section and such subsection shall take effect
upon such issuance.

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SEC. 107. ESTABLISHMENT OF FAIR MARKET RENT.

Web posting.

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(a) IN GENERAL.—Paragraph (1) of section 8(c) of the United
States Housing Act of 1937 (42 U.S.C. 1437f(c)(1)) is amended—
(1) by inserting ‘‘(A)’’ after the paragraph designation;
(2) by striking the fourth, seventh, eighth, and ninth sentences; and
(3) by adding at the end the following:
‘‘(B) Fair market rentals for an area shall be published not
less than annually by the Secretary on the site of the Department

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130 STAT. 801

on the World Wide Web and in any other manner specified by
the Secretary. Notice that such fair market rentals are being published shall be published in the Federal Register, and such fair
market rentals shall become effective no earlier than 30 days after
the date of such publication. The Secretary shall establish a procedure for public housing agencies and other interested parties to
comment on such fair market rentals and to request, within a
time specified by the Secretary, reevaluation of the fair market
rentals in a jurisdiction before such rentals become effective. The
Secretary shall cause to be published for comment in the Federal
Register notices of proposed material changes in the methodology
for estimating fair market rentals and notices specifying the final
decisions regarding such proposed substantial methodological
changes and responses to public comments.’’.
(b) PAYMENT STANDARD.—Subparagraph (B) of section 8(o)(1)
of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(1)(B))
is amended by inserting before the period at the end the following:
‘‘, except that no public housing agency shall be required as a
result of a reduction in the fair market rental to reduce the payment
standard applied to a family continuing to reside in a unit for
which the family was receiving assistance under this section at
the time the fair market rental was reduced. The Secretary shall
allow public housing agencies to request exception payment standards within fair market rental areas subject to criteria and procedures established by the Secretary’’.
(c) EFFECTIVE DATE.—The amendments made by this section
shall take effect upon the date of the enactment of this Act.

Notice.
Federal Register,
publication.
Effective date.
Time period.

Criteria.
Procedures.

42 USC 1437f
note.

SEC. 108. COLLECTION OF UTILITY DATA.

Section 8(o) of the United States Housing Act of 1937 (42
U.S.C. 1437f(o)) is amended by adding at the end the following
new paragraph:
‘‘(20) COLLECTION OF UTILITY DATA.—
‘‘(A) PUBLICATION.—The Secretary shall, to the extent
that data can be collected cost effectively, regularly publish
such data regarding utility consumption and costs in local
areas as the Secretary determines will be useful for the
establishment of allowances for tenant-paid utilities for
families assisted under this subsection.
‘‘(B) USE OF DATA.—The Secretary shall provide such
data in a manner that—
‘‘(i) avoids unnecessary administrative burdens for
public housing agencies and owners; and
‘‘(ii) protects families in various unit sizes and
building types, and using various utilities, from high
rent and utility cost burdens relative to income.’’.

Determination.

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SEC. 109. PUBLIC HOUSING CAPITAL AND OPERATING FUNDS.

(a) CAPITAL FUND REPLACEMENT RESERVES.—Section 9 of the
United States Housing Act of 1937 (42 U.S.C. 1437g) is amended—
(1) in subsection (j), by adding at the end the following
new paragraph:
‘‘(7) TREATMENT OF REPLACEMENT RESERVE.—The requirements of this subsection shall not apply to funds held in replacement reserves established pursuant to subsection (n).’’; and
(2) by adding at the end the following new subsection:
‘‘(n) ESTABLISHMENT OF REPLACEMENT RESERVES.—

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Determination.

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Regulations.

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‘‘(1) IN GENERAL.—Public housing agencies shall be permitted to establish a replacement reserve to fund any of the
capital activities listed in subsection (d)(1).
‘‘(2) SOURCE AND AMOUNT OF FUNDS FOR REPLACEMENT
RESERVE.—At any time, a public housing agency may deposit
funds from such agency’s Capital Fund into a replacement
reserve, subject to the following:
‘‘(A) At the discretion of the Secretary, public housing
agencies may transfer and hold in a replacement reserve
funds originating from additional sources.
‘‘(B) No minimum transfer of funds to a replacement
reserve shall be required.
‘‘(C) At any time, a public housing agency may not
hold in a replacement reserve more than the amount the
public housing authority has determined necessary to satisfy the anticipated capital needs of properties in its portfolio assisted under this section, as outlined in its Capital
Fund 5-Year Action Plan, or a comparable plan, as determined by the Secretary.
‘‘(D) The Secretary may establish, by regulation, a
maximum replacement reserve level or levels that are
below amounts determined under subparagraph (C), which
may be based upon the size of the portfolio assisted under
this section or other factors.
‘‘(3) TRANSFER OF OPERATING FUNDS.—In first establishing
a replacement reserve, the Secretary may allow public housing
agencies to transfer more than 20 percent of its operating
funds into its replacement reserve.
‘‘(4) EXPENDITURE.—Funds in a replacement reserve may
be used for purposes authorized by subsection (d)(1) and contained in its Capital Fund 5-Year Action Plan.
‘‘(5) MANAGEMENT AND REPORT.—The Secretary shall establish appropriate accounting and reporting requirements to
ensure that public housing agencies are spending funds on
eligible projects and that funds in the replacement reserve
are connected to capital needs.’’.
(b) FLEXIBILITY OF OPERATING FUND AMOUNTS.—Paragraph (1)
of section 9(g) of the United States Housing Act of 1937 (42 U.S.C.
1437g(g)(1)) is amended—
(1) by striking ‘‘(1)’’ and all that follows through ‘‘—Of’’
and inserting the following:
‘‘(1) FLEXIBILITY IN USE OF FUNDS.—
‘‘(A) FLEXIBILITY FOR CAPITAL FUND AMOUNTS.—Of’’;
and
(2) by adding at the end the following new subparagraph:
‘‘(B) FLEXIBILITY FOR OPERATING FUND AMOUNTS.—Of
any amounts appropriated for fiscal year 2016 or any fiscal
year thereafter that are allocated for fiscal year 2016 or
any fiscal year thereafter from the Operating Fund for
any public housing agency, the agency may use not more
than 20 percent for activities that are eligible under subsection (d) for assistance with amounts from the Capital
Fund, but only if the public housing plan under section
5A for the agency provides for such use.’’.

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130 STAT. 803

SEC. 110. FAMILY UNIFICATION PROGRAM FOR CHILDREN AGING OUT
OF FOSTER CARE.

Section 8(x) of the United States Housing Act of 1937 (42
U.S.C. 1437f(x)) is amended—
(1) in paragraph (2)(B)—
(A) by striking ‘‘18 months’’ and inserting ‘‘36 months’’;
(B) by striking ‘‘21 years of age’’ and inserting ‘‘24
years of age’’; and
(C) by inserting after ‘‘have left foster care’’ the following: ‘‘, or will leave foster care within 90 days, in accordance with a transition plan described in section 475(5)(H)
of the Social Security Act, and is homeless or is at risk
of becoming homeless’’;
(2) by redesignating paragraph (4) as paragraph (5); and
(3) by inserting after paragraph (3) the following new paragraph:
‘‘(4) COORDINATION BETWEEN PUBLIC HOUSING AGENCIES
AND PUBLIC CHILD WELFARE AGENCIES.—The Secretary shall,
not later than the expiration of the 180-day period beginning
on the date of the enactment of the Housing Opportunity
Through Modernization Act of 2016 and after consultation with
other appropriate Federal agencies, issue guidance to improve
coordination between public housing agencies and public child
welfare agencies in carrying out the program under this subsection, which shall provide guidance on—
‘‘(A) identifying eligible recipients for assistance under
this subsection;
‘‘(B) coordinating with other local youth and family
providers in the community and participating in the Continuum of Care program established under subtitle C of
title IV of the McKinney-Vento Homeless Assistance Act
(42 U.S.C. 11381 et seq.);
‘‘(C) implementing housing strategies to assist eligible
families and youth;
‘‘(D) aligning system goals to improve outcomes for
families and youth and reducing lapses in housing for
families and youth; and
‘‘(E) identifying resources that are available to eligible
families and youth to provide supportive services available
through parts B and E of title IV of the Social Security
Act (42 U.S.C. 621 et seq.; 670 et seq.) or that the head
of household of a family or youth may be entitled to receive
under section 477 of the Social Security Act (42 U.S.C.
677).’’.

Deadline.
Time period.
Effective date.
Consultation.
Guidance.

SEC. 111. PUBLIC HOUSING HEATING GUIDELINES.

Section 9 of the United States Housing Act of 1937 (42 U.S.C.
1437g), as amended by the preceding provisions of this Act, is
further amended by adding at the end the following new subsection:
‘‘(o) PUBLIC HOUSING HEATING GUIDELINES.—The Secretary
shall publish model guidelines for minimum heating requirements
for public housing dwelling units operated by public housing agencies receiving assistance under this section.’’.

Publication.

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SEC. 112. USE OF VOUCHERS FOR MANUFACTURED HOUSING.

(a) IN GENERAL.—Section 8(o)(12) of the United States Housing
Act of 1937 (42 U.S.C. 1437f(o)(12)) is amended—

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PUBLIC LAW 114–201—JULY 29, 2016

(1) in subparagraph (A), by striking the period at the
end of the first sentence and all that follows through ‘‘of’’
in the second sentence and inserting ‘‘and rents’’; and
(2) in subparagraph (B)—
(A) in clause (i), by striking ‘‘the rent’’ and all that
follows and inserting the following: ‘‘rent shall mean the
sum of the monthly payments made by a family assisted
under this paragraph to amortize the cost of purchasing
the manufactured home, including any required insurance
and property taxes, the monthly amount allowed for tenantpaid utilities, and the monthly rent charged for the real
property on which the manufactured home is located,
including monthly management and maintenance
charges.’’;
(B) by striking clause (ii); and
(C) in clause (iii)—
(i) by inserting after the period at the end the
following: ‘‘If the amount of the monthly assistance
payment for a family exceeds the monthly rent charged
for the real property on which the manufactured home
is located, including monthly management and maintenance charges, a public housing agency may pay the
remainder to the family, lender or utility company,
or may choose to make a single payment to the family
for the entire monthly assistance amount.’’; and
(ii) by redesignating such clause as clause (ii).
(b) EFFECTIVE DATE.—The Secretary of Housing and Urban
Development shall issue notice to implement the amendments made
by subsection (a) and such amendments shall take effect upon
such issuance.

Notice.
42 USC 1437f
note.

SEC. 113. PREFERENCE FOR UNITED STATES CITIZENS OR NATIONALS.

Section 214(a)(7) of the Housing and Community Development
Act of 1980 (42 U.S.C. 1436a(a)(7)) is amended by striking ‘‘such
alien’’ and all that follows through the period at the end and
inserting ‘‘any citizen or national of the United States shall be
entitled to a preference or priority in receiving financial assistance
before any such alien who is otherwise eligible for assistance.’’.

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SEC. 114. EXCEPTION TO PUBLIC HOUSING AGENCY RESIDENT BOARD
MEMBER REQUIREMENT.

Establishment.

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Subsection (b) of section 2 of the United States Housing Act
of 1937 (42 U.S.C. 1437(b)) is amended—
(1) in paragraph (1), by striking ‘‘paragraph (2)’’ and
inserting ‘‘paragraphs (2) and (3)’’;
(2) by redesignating paragraph (3) as paragraph (4); and
(3) by inserting after paragraph (2) the following new paragraph:
‘‘(3) EXCEPTION FOR CERTAIN JURISDICTIONS.—
‘‘(A) EXCEPTION.—A covered agency (as such term is
defined in subparagraph (C) of this paragraph) shall not
be required to include on the board of directors or a similar
governing board of such agency a member described in
paragraph (1).
‘‘(B) ADVISORY BOARD REQUIREMENT.—Each covered
agency that administers Federal housing assistance under
section 8 (42 U.S.C. 1437f) that chooses not to include

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a member described in paragraph (1) on the board of directors or a similar governing board of the agency shall establish an advisory board of not less than 6 residents of
public housing or recipients of assistance under section
8 (42 U.S.C. 1437f) to provide advice and comment to
the agency or other administering entity on issues related
to public housing and section 8. Such advisory board shall
meet not less than quarterly.
‘‘(C) COVERED AGENCY OR ENTITY.—For purposes of
this paragraph, the term ‘covered agency’ means a public
housing agency or such other entity that administers Federal housing assistance for—
‘‘(I) the Housing Authority of the county of Los
Angeles, California; or
‘‘(ii) any of the States of Alaska, Iowa, and Mississippi.’’.

Definition.

TITLE II—RURAL HOUSING
SEC. 201. DELEGATION OF GUARANTEED RURAL HOUSING LOAN
APPROVAL.

Subsection (h) of section 502 of the Housing Act of 1949 (42
U.S.C. 1472(h)) is amended by adding at the end the following
new paragraph:
‘‘(18) DELEGATION OF APPROVAL.—The Secretary may delegate, in part or in full, the Secretary’s authority to approve
and execute binding Rural Housing Service loan guarantees
pursuant to this subsection to certain preferred lenders, in
accordance with standards established by the Secretary.’’.

Standards.

SEC. 202. GUARANTEED UNDERWRITING USER FEE.

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Section 502 of the Housing Act of 1949 (42 U.S.C. 1472) is
amended by adding at the end the following new subsection:
‘‘(i) GUARANTEED UNDERWRITING USER FEE.—
‘‘(1) AUTHORITY; MAXIMUM AMOUNT.—The Secretary may
assess and collect a fee for a lender to access the automated
underwriting systems of the Department in connection with
such lender’s participation in the single family loan program
under this section and only in an amount necessary to cover
the costs of information technology enhancements, improvements, maintenance, and development for automated underwriting systems used in connection with the single family loan
program under this section, except that such fee shall not
exceed $50 per loan.
‘‘(2) CREDITING; AVAILABILITY.—Any amounts collected from
such fees shall be credited to the Rural Development Expense
Account as offsetting collections and shall remain available
until expended, in the amounts provided in appropriation Acts,
solely for expenses described in paragraph (1).’’.

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PUBLIC LAW 114–201—JULY 29, 2016

TITLE III—FHA MORTGAGE INSURANCE
FOR CONDOMINIUMS
SEC. 301. MODIFICATION OF FHA REQUIREMENTS FOR MORTGAGE
INSURANCE FOR CONDOMINIUMS.

Determination.

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Deadline.
Time period.
Effective date.
Regulations.
Standards.
Penalties.
Applicability.

Federal Register,
publication.
Notice.
Deadline.

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Section 203 of the National Housing Act (12 U.S.C. 1709)
is amended by adding at the end the following new subsection:
‘‘(y) REQUIREMENTS FOR MORTGAGES FOR CONDOMINIUMS.—
‘‘(1) PROJECT RECERTIFICATION REQUIREMENTS.—Notwithstanding any other law, regulation, or guideline of the Secretary, including chapter 2.4 of the Condominium Project
Approval and Processing Guide of the FHA, the Secretary shall
streamline the project certification requirements that are
applicable to the insurance under this section for mortgages
for condominium projects so that recertifications are substantially less burdensome than certifications. The Secretary shall
consider lengthening the time between certifications for
approved properties, and allowing updating of information
rather than resubmission.
‘‘(2) COMMERCIAL SPACE REQUIREMENTS.—Notwithstanding
any other law, regulation, or guideline of the Secretary,
including chapter 2.1.3 of the Condominium Project Approval
and Processing Guide of the FHA, in providing for exceptions
to the requirement for the insurance of a mortgage on a condominium property under this section regarding the percentage
of the floor space of a condominium property that may be
used for nonresidential or commercial purposes, the Secretary
shall provide that—
‘‘(A) any request for such an exception and the determination of the disposition of such request may be made,
at the option of the requester, under the direct endorsement
lender review and approval process or under the HUD
review and approval process through the applicable field
office of the Department; and
‘‘(B) in determining whether to allow such an exception
for a condominium property, factors relating to the economy
for the locality in which such project is located or specific
to project, including the total number of family units in
the project, shall be considered.
Not later than the expiration of the 90-day period beginning
on the date of the enactment of this paragraph, the Secretary
shall issue regulations to implement this paragraph, which
shall include any standards, training requirements, and remedies and penalties that the Secretary considers appropriate.
‘‘(3) TRANSFER FEES.—Notwithstanding any other law, regulation, or guideline of the Secretary, including chapter 1.8.8
of the Condominium Project Approval and Processing Guide
of the FHA and section 203.41 of the Secretary’s regulations
(24 CFR 203.41), existing standards of the Federal Housing
Finance Agency relating to encumbrances under private
transfer fee covenants shall apply to the insurance of mortgages
by the Secretary under this section to the same extent and
in the same manner that such standards apply to the purchasing, investing in, and otherwise dealing in mortgages by
the Federal National Mortgage Association and the Federal
Home Loan Mortgage Corporation. If the provisions of part

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1228 of the Director of the Federal Housing Finance Agency’s
regulations (12 CFR part 1228) are amended or otherwise
changed after the date of the enactment of this paragraph,
the Secretary of Housing and Urban Development shall adopt
any such amendments or changes for purposes of this paragraph, unless the Secretary causes to be published in the Federal Register a notice explaining why the Secretary will disregard such amendments or changes within 90 days after the
effective date of such amendments or changes.
‘‘(4) OWNER-OCCUPANCY REQUIREMENT.—
‘‘(A) ESTABLISHMENT OF PERCENTAGE REQUIREMENT.—
Not later than the expiration of the 90-day period beginning
on the date of the enactment of this paragraph, the Secretary shall, by rule, notice, or mortgagee letter, issue
guidance regarding the percentage of units that must be
occupied by the owners as a principal residence or a secondary residence (as such terms are defined by the Secretary), or must have been sold to owners who intend
to meet such occupancy requirements, including justifications for the percentage requirements, in order for a condominium project to be acceptable to the Secretary for insurance under this section of a mortgage within such condominium property.
‘‘(B) FAILURE TO ACT.—If the Secretary fails to issue
the guidance required under subparagraph (A) before the
expiration of the 90-day period specified in such clause,
the following provisions shall apply:
‘‘(i) 35 PERCENT REQUIREMENT.—In order for a condominium project to be acceptable to the Secretary
for insurance under this section, at least 35 percent
of all family units (including units not covered by FHAinsured mortgages) must be occupied by the owners
as a principal residence or a secondary residence (as
such terms are defined by the Secretary), or must
have been sold to owners who intend to meet such
occupancy requirement.
‘‘(ii) OTHER CONSIDERATIONS.—The Secretary may
increase the percentage applicable pursuant to clause
(i) to a condominium project on a project-by-project
or regional basis, and in determining such percentage
for a project shall consider factors relating to the
economy for the locality in which such project is located
or specific to project, including the total number of
family units in the project.’’.

Deadline.
Time period.
Effective date.
Regulations.
Notice.
Guidance.

Applicability.

TITLE IV—HOUSING REFORMS FOR THE
HOMELESS AND FOR VETERANS

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SEC. 401. DEFINITION OF GEOGRAPHIC AREA FOR CONTINUUM OF
CARE PROGRAM.

(a) DEFINITION.—Subtitle C of the McKinney-Vento Homeless
Assistance Act is amended—
(1) by redesignating sections 432 and 433 (42 U.S.C. 11387,
11388) as sections 433 and 434, respectively; and
(2) by inserting after section 431 (42 U.S.C. 11386e) the
following new section:

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PUBLIC LAW 114–201—JULY 29, 2016

42 USC 11386f.

‘‘SEC. 432. GEOGRAPHIC AREAS.

Notice.

‘‘(a) REQUIREMENT TO DEFINE.—For purposes of this subtitle,
the term ‘geographic area’ shall have such meaning as the Secretary
shall by notice provide.
‘‘(b) ISSUANCE OF NOTICE.—Not later than the expiration of
the 90-day period beginning on the date of the enactment of the
Housing Opportunity Through Modernization Act of 2016, the Secretary shall issue a notice setting forth the definition required
by subsection (a).’’.
(b) CLERICAL AMENDMENT.—The table of contents in section
101(b) of the McKinney-Vento Homeless Assistance Act (42 U.S.C.
11301 note) is amended by striking the items relating to sections
432 and 433 and inserting the following new items:

Deadline.
Time period.
Effective date.

‘‘Sec. 432. Geographic areas.
‘‘Sec. 433. Regulations.
‘‘Sec. 434. Reports to Congress.’’.
SEC. 402. INCLUSION OF PUBLIC HOUSING AGENCIES AND LOCAL
REDEVELOPMENT AUTHORITIES IN EMERGENCY SOLUTIONS GRANTS.

Section 414(c) of the McKinney-Vento Homeless Assistance Act
(42 U.S.C. 11373(c)) is amended—
(1) in the subsection heading, by inserting ‘‘, PUBLIC
HOUSING AGENCIES, AND LOCAL REDEVELOPMENT AUTHORITIES’’
after ‘‘ORGANIZATIONS’’; and
(2) in the first sentence, by inserting before the period
at the end the following: ‘‘, to public housing agencies (as
defined under section 3(b)(6) of the United States Housing
Act of 1937), or to local redevelopment authorities (as defined
under State law)’’.

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SEC. 403. SPECIAL ASSISTANT FOR VETERANS AFFAIRS IN THE
DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT.

(a) TRANSFER OF POSITION TO OFFICE OF THE SECRETARY.—
Section 4 of the Department of Housing and Urban Development
Act (42 U.S.C. 3533) is amended by adding at the end the following
new subsection:
‘‘(h) SPECIAL ASSISTANT FOR VETERANS AFFAIRS.—
‘‘(1) POSITION.—There shall be in the Office of the Secretary
a Special Assistant for Veterans Affairs, who shall report
directly to the Secretary.
‘‘(2) APPOINTMENT.—The Special Assistant for Veterans
Affairs shall be appointed based solely on merit and shall
be covered under the provisions of title 5, United States Code,
governing appointments in the competitive service.
‘‘(3) RESPONSIBILITIES.—The Special Assistant for Veterans
Affairs shall be responsible for—
‘‘(A) ensuring veterans have fair access to housing and
homeless assistance under each program of the Department
providing either such assistance;
‘‘(B) coordinating all programs and activities of the
Department relating to veterans;
‘‘(C) serving as a liaison for the Department with the
Department of Veterans Affairs, including establishing and
maintaining relationships with the Secretary of Veterans
Affairs;

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‘‘(D) serving as a liaison for the Department, and establishing and maintaining relationships with the United
States Interagency Council on Homelessness and officials
of State, local, regional, and nongovernmental organizations concerned with veterans;
‘‘(E) providing information and advice regarding—
‘‘(i) sponsoring housing projects for veterans
assisted under programs administered by the Department; or
‘‘(ii) assisting veterans in obtaining housing or
homeless assistance under programs administered by
the Department;
‘‘(F) coordinating with the Secretary of Housing and
Urban Development and the Secretary of Veterans Affairs
in carrying out section 404 of the Housing Opportunity
Through Modernization Act of 2016;
‘‘(G) collaborating with the Department of Veterans
Affairs on making joint recommendations to the Congress,
the Secretary of Housing and Urban Development, and
the Secretary of Veterans Affairs on how to better coordinate and improve services to veterans under both Department of Housing and Urban Development and Department
of Veteran Affairs veterans housing programs, including
ways to improve the Independent Living Program of the
Department of Veteran Affairs; and
‘‘(H) carrying out such other duties as may be assigned
to the Special Assistant by the Secretary or by law.’’.
(b) TRANSFER OF POSITION IN OFFICE OF DEPUTY ASSISTANT
SECRETARY FOR SPECIAL NEEDS.—On the date that the initial Special Assistant for Veterans Affairs is appointed pursuant to section
4(h)(2) of the Department of Housing and Urban Development
Act, as added by subsection (a) of this section, the position of
Special Assistant for Veterans Programs in the Office of the Deputy
Assistant Secretary for Special Needs of the Department of Housing
and Urban Development shall be terminated.

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42 USC 3533
note.
Termination.

SEC. 404. ANNUAL SUPPLEMENTAL REPORT ON VETERANS HOMELESSNESS.

42 USC 11313
note.

(a) IN GENERAL.—The Secretary of Housing and Urban Development and the Secretary of Veterans Affairs, in coordination with
the United States Interagency Council on Homelessness, shall
submit annually to the Committees of the Congress specified in
subsection (b), together with the annual reports required by such
Secretaries under section 203(c)(1) of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11313(c)(1)), a supplemental report that
includes the following information with respect to the preceding
year:
(1) The same information, for such preceding year, that
was included with respect to 2010 in the report by the Secretary
of Housing and Urban Development and the Secretary of Veterans Affairs entitled ‘‘Veterans Homelessness: A Supplemental
Report to the 2010 Annual Homeless Assessment Report to
Congress’’.
(2) Information regarding the activities of the Department
of Housing and Urban Development relating to veterans during
such preceding year, as follows:

Coordination.

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PUBLIC LAW 114–201—JULY 29, 2016

(A) The number of veterans provided assistance under
the housing choice voucher program for Veterans Affairs
supported housing under section 8(o)(19) of the United
States Housing Act of 1937 (42 U.S.C. 1437f(o)(19)), the
socioeconomic characteristics of such homeless veterans,
and the number, types, and locations of entities contracted
under such section to administer the vouchers.
(B) A summary description of the special considerations
made for veterans under public housing agency plans submitted pursuant to section 5A of the United States Housing
Act of 1937 (42 U.S.C. 1437c–1) and under comprehensive
housing affordability strategies submitted pursuant to section 105 of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12705).
(C) A description of the activities of the Special Assistant for Veterans Affairs of the Department of Housing
and Urban Development.
(D) A description of the efforts of the Department
of Housing and Urban Development and the other members
of the United States Interagency Council on Homelessness
to coordinate the delivery of housing and services to veterans.
(E) The cost to the Department of Housing and Urban
Development of administering the programs and activities
relating to veterans.
(F) Any other information that the Secretary of
Housing and Urban Development and the Secretary of
Veterans Affairs consider relevant in assessing the programs and activities of the Department of Housing and
Urban Development relating to veterans.
(b) COMMITTEES.—The Committees of the Congress specified
in this subsection are as follows:
(1) The Committee on Banking, Housing, and Urban Affairs
of the Senate.
(2) The Committee on Veterans’ Affairs of the Senate.
(3) The Committee on Appropriations of the Senate.
(4) The Committee on Financial Services of the House
of Representatives.
(5) The Committee on Veterans’ Affairs of the House of
Representatives.
(6) The Committee on Appropriations of the House of Representatives.

Summary.

SEC. 405. REOPENING OF PUBLIC COMMENT PERIOD FOR CONTINUUM
OF CARE PROGRAM REGULATIONS.

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Deadline.
Time period.
Effective date.

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Not later than the expiration of the 30-day period beginning
on the date of the enactment of this Act, the Secretary of Housing
and Urban Development shall re-open the period for public comment
regarding the Secretary’s interim rule entitled ‘‘Homeless Emergency Assistance and Rapid Transition to Housing: Continuum
of Care Program’’, published in the Federal Register on July 31,
2012 (77 Fed. Reg. 45422; Docket No. FR–5476–I–01). Upon reopening, such comment period shall remain open for a period of
not fewer than 60 days.

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PUBLIC LAW 114–201—JULY 29, 2016

130 STAT. 811

TITLE V—MISCELLANEOUS
SEC. 501. INCLUSION OF DISASTER HOUSING ASSISTANCE PROGRAM
IN CERTAIN FRAUD AND ABUSE PREVENTION MEASURES.

42 USC 3544
note.

The Disaster Housing Assistance Program administered by the
Department of Housing and Urban Development shall be considered
a ‘‘program of the Department of Housing and Urban Development’’
under section 904 of the Stewart B. McKinney Homeless Assistance
Amendments Act of 1988 (42 U.S.C. 3544) for the purpose of income
verifications.
SEC. 502. ENERGY EFFICIENCY REQUIREMENTS UNDER SELF-HELP
HOMEOWNERSHIP OPPORTUNITY PROGRAM.

Section 11 of the Housing Opportunity Program Extension Act
of 1996 (42 U.S.C. 12805 note) is amended by inserting after subsection (f) the following new subsection:
‘‘(g) ENERGY EFFICIENCY REQUIREMENTS.—The Secretary may
not require any dwelling developed using amounts from a grant
made under this section to meet any energy efficiency standards
other than the standards applicable at such time pursuant to section
109 of the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12709) to housing specified in subsection (a) of such section.’’.
SEC. 503. DATA EXCHANGE STANDARDIZATION FOR IMPROVED INTEROPERABILITY.

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(a) DATA EXCHANGE STANDARDIZATION.—Title I of the United
States Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended
by adding at the end the following new section:

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‘‘SEC. 37. DATA EXCHANGE STANDARDS FOR IMPROVED INTEROPERABILITY.

42 USC 1437z–9.

‘‘(a) DESIGNATION.—The Secretary shall, in consultation with
an interagency work group established by the Office of Management
and Budget, and considering State government perspectives, designate data exchange standards to govern, under this Act—
‘‘(1) necessary categories of information that State agencies
operating related programs are required under applicable law
to electronically exchange with another State agency; and
‘‘(2) Federal reporting and data exchange required under
applicable law.
‘‘(b) REQUIREMENTS.—The data exchange standards required
by subsection (a) shall, to the maximum extent practicable—
‘‘(1) incorporate a widely accepted, nonproprietary, searchable, computer-readable format, such as the eXtensible Markup
Language;
‘‘(2) contain interoperable standards developed and maintained by intergovernmental partnerships, such as the National
Information Exchange Model;
‘‘(3) incorporate interoperable standards developed and
maintained by Federal entities with authority over contracting
and financial assistance;
‘‘(4) be consistent with and implement applicable
accounting principles;
‘‘(5) be implemented in a manner that is cost- effective
and improves program efficiency and effectiveness; and
‘‘(6) be capable of being continually upgraded as necessary.

Consultation.

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130 STAT. 812

42 USC 1437z–9
note.
Deadline.
Regulations.

PUBLIC LAW 114–201—JULY 29, 2016

‘‘(c) RULES OF CONSTRUCTION.—Nothing in this section requires
a change to existing data exchange standards for Federal reporting
found to be effective and efficient.’’.
(b) APPLICABILITY.—
(1) IN GENERAL.—Not later than 2 years after the date
of the enactment of this Act, the Secretary of Housing and
Urban Development shall issue a proposed rule to carry out
the amendments made by subsection (a).
(2) REQUIREMENTS.—The rule shall—
(A) identify federally required data exchanges;
(B) include specification and timing of exchanges to
be standardized;
(C) address the factors used in determining whether
and when to standardize data exchanges;
(D) specify State implementation options; and
(E) describe future milestones.

TITLE VI—REPORTS
42 USC 3536a
note.

SEC. 601. REPORT ON INTERAGENCY FAMILY ECONOMIC EMPOWERMENT STRATEGIES.

Consultation.

The Secretary of Housing and Urban Development, in consultation with the Secretary of Labor, shall submit a report to the
Congress annually that describes—
(1) any interagency strategies of such Departments that
are designed to improve family economic empowerment by
linking housing assistance with essential supportive services,
such as employment counseling and training, financial education and growth, childcare, transportation, meals, youth recreational activities, and other supportive services; and
(2) any actions taken in the preceding year to carry out
such strategies and the extent of progress achieved by such
actions.

TITLE VII—HOUSING OPPORTUNITIES
FOR PERSONS WITH AIDS

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SEC. 701. FORMULA AND TERMS FOR ALLOCATIONS TO PREVENT
HOMELESSNESS FOR INDIVIDUALS LIVING WITH HIV OR
AIDS.

(a) IN GENERAL.—Subsection (c) of section 854 of the AIDS
Housing Opportunity Act (42 U.S.C. 12903(c)) is amended by—
(1) redesignating paragraph (3) as paragraph (5); and
(2) striking paragraphs (1) and (2) and inserting the following:
‘‘(1) ALLOCATION OF RESOURCES.—
‘‘(A) ALLOCATION FORMULA.—The Secretary shall allocate 90 percent of the amount approved in appropriations
Acts under section 863 among States and metropolitan
statistical areas as follows:
‘‘(I) 75 percent of such amounts among—
‘‘(I) cities that are the most populous unit of
general local government in a metropolitan statistical area with a population greater than 500,000,
as determined on the basis of the most recent

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PUBLIC LAW 114–201—JULY 29, 2016

130 STAT. 813

census, and with more than 2,000 individuals
living with HIV or AIDS, using the data specified
in subparagraph (B); and
‘‘(II) States with more than 2,000 individuals
living with HIV or AIDS outside of metropolitan
statistical areas.
‘‘(ii) 25 percent of such amounts among States
and metropolitan statistical areas based on the method
described in subparagraph (C).
‘‘(B) SOURCE OF DATA.—For purposes of allocating
amounts under this paragraph for any fiscal year, the
number of individuals living with HIV or AIDS shall be
the number of such individuals as confirmed by the Director
of the Centers for Disease Control and Prevention, as of
December 31 of the most recent calendar year for which
such data is available.
‘‘(C) ALLOCATION UNDER SUBPARAGRAPH (A)(ii).—For
purposes of allocating amounts under subparagraph (A)(ii),
the Secretary shall develop a method that accounts for—
‘‘(I) differences in housing costs among States and
metropolitan statistical areas based on the fair market
rental established pursuant to section 8(c) of the
United States Housing Act of 1937 (42 U.S.C. 1437f(c))
or another methodology established by the Secretary
through regulation; and
‘‘(ii) differences in poverty rates among States and
metropolitan statistical areas based on area poverty
indexes or another methodology established by the Secretary through regulation.
‘‘(2) MAINTAINING GRANTS.—
‘‘(A) CONTINUED ELIGIBILITY OF FISCAL YEAR 2016
GRANTEES.—A grantee that received an allocation in fiscal
year 2016 shall continue to be eligible for allocations under
paragraph (1) in subsequent fiscal years, subject to—
‘‘(I) the amounts available from appropriations
Acts under section 863;
‘‘(ii) approval by the Secretary of the most recent
comprehensive housing affordability strategy for the
grantee approved under section 105; and
‘‘(iii) the requirements of subparagraph (C).
‘‘(B) ADJUSTMENTS.—Allocations to grantees described
in subparagraph (A) shall be adjusted annually based on
the administrative provisions included in fiscal year 2016
appropriations Acts.
‘‘(C) REDETERMINATION OF CONTINUED ELIGIBILITY.—
The Secretary shall redetermine the continued eligibility
of a grantee that received an allocation in fiscal year 2016
at least once during the 10-year period following fiscal
year 2016.
‘‘(D) ADJUSTMENT TO GRANTS.—For each of fiscal years
2017, 2018, 2019, 2020, and 2021, the Secretary shall
ensure that a grantee that received an allocation in the
prior fiscal year does not receive an allocation that is
5 percent less than or 10 percent greater than the amount
allocated to such grantee in the preceding fiscal year.
‘‘(3) ALTERNATIVE GRANTEES.—

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Time period.

Contracts.

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130 STAT. 814

Contracts.

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Determination.

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PUBLIC LAW 114–201—JULY 29, 2016

‘‘(A) REQUIREMENTS.—The Secretary may award funds
reserved for a grantee eligible under paragraph (1) to an
alternative grantee if—
‘‘(I) the grantee submits to the Secretary a written
agreement between the grantee and the alternative
grantee that describes how the alternative grantee will
take actions consistent with the applicable comprehensive housing affordability strategy approved under section 105 of this Act;
‘‘(ii) the Secretary approves the written agreement
described in clause (I) and agrees to award funds to
the alternative grantee; and
‘‘(iii) the written agreement does not exceed a term
of 10 years.
‘‘(B) RENEWAL.—An agreement approved pursuant to
subparagraph (A) may be renewed by the parties with
the approval of the Secretary.
‘‘(C) DEFINITION.—In this paragraph, the term ‘alternative grantee’ means a public housing agency (as defined
in section 3(b) of the United States Housing Act of 1937
(42 U.S.C. 1437a(b))), a unified funding agency (as defined
in section 401 of the McKinney-Vento Homeless Assistance
Act (42 U.S.C. 11360)), a State, a unit of general local
government, or an instrumentality of State or local government.
‘‘(4) REALLOCATIONS.—If a State or metropolitan statistical
area declines an allocation under paragraph (1)(A), or the Secretary determines, in accordance with criteria specified in regulation, that a State or metropolitan statistical area that is
eligible for an allocation under paragraph (1)(A) is unable to
properly administer such allocation, the Secretary shall reallocate any funds reserved for such State or metropolitan statistical area as follows:
‘‘(A) For funds reserved for a State—
‘‘(I) to eligible metropolitan statistical areas within
the State on a pro rata basis; or
‘‘(ii) if there is no eligible metropolitan statistical
areas within a State, to metropolitan cities and urban
counties within the State that are eligible for grant
under section 106 of the Housing and Community
Development Act of 1974 (42 U.S.C. 5306), on a pro
rata basis.
‘‘(B) For funds reserved for a metropolitan statistical
area, to the State in which the metropolitan statistical
area is located.
‘‘(C) If the Secretary is unable to make a reallocation
under subparagraph (A) or (B), the Secretary shall make
such funds available on a pro rata basis under the formula
in paragraph (1)(A).’’.
(b) AMENDMENT TO DEFINITIONS.—Section 853 of the AIDS
Housing Opportunity Act (42 U.S.C. 12902) is amended—
(1) in paragraph (1), by inserting ‘‘or ‘AIDS’ ’’ before
‘‘means’’; and
(2) by inserting at the end the following new paragraphs:
‘‘(15) The term ‘HIV’ means infection with the human
immunodeficiency virus.

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PUBLIC LAW 114–201—JULY 29, 2016

130 STAT. 815

‘‘(16) The term ‘individuals living with HIV or AIDS’ means,
with respect to the counting of cases in a geographic area
during a period of time, the sum of—
‘‘(A) the number of living non-AIDS cases of HIV in
the area; and
‘‘(B) the number of living cases of AIDS in the area.’’.

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Approved July 29, 2016.

LEGISLATIVE HISTORY—H.R. 3700:
HOUSE REPORTS: No. 114–397 (Comm. on Financial Services).
CONGRESSIONAL RECORD, Vol. 162 (2016):
Feb. 2, considered and passed House.
July 14, considered and passed Senate.

Æ

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