42 U.S.C. § 1437d — Contract provisions and requirements;

Page 4559 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437d 2531; amended Pub. L. 109–162, title VI, § 603, Jan. 5, 2006, 119 Stat. 3040; Pub. L. 110–289, div. B, title VII, § 2702, July 30, 2008, 122 Stat. 2863.) Editorial Notes REFERENCES IN TEXT The Cranston-Gonzalez National Affordable Housing Act, referred to in subsecs. (c)(2)(B) and (i)(1)(B), is Pub. L. 101–625, Nov. 28, 1990, 104 Stat. 4079. Title I of the Act is classified generally to subchapter I (§ 12701 et seq.) of chapter 130 of this title. For complete classi- fication of this Act to the Code, see Short Title note set out under section 12701 of this title and Tables. The Civil Rights Act of 1964, referred to in subsec. (d)(16), is Pub. L. 88–352, July 2, 1964, 78 Stat. 241. Title VI of the Act is classified generally to subchapter V (§ 2000d et seq.) of chapter 21 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 2000a of this title and Tables. The Fair Housing Act, referred to in subsec. (d)(16), is title VIII of Pub. L. 90–284, Apr. 11, 1968, 82 Stat. 81, which is classified principally to subchapter I (§ 3601 et seq.) of chapter 45 of this title. For complete classifica- tion of this Act to the Code, see Short Title note set out under section 3601 of this title and Tables. The Americans with Disabilities Act of 1990, referred to in subsec. (d)(16), is Pub. L. 101–336, July 26, 1990, 104 Stat. 327. Title II of the Act is classified generally to subchapter II (§ 12131 et seq.) of chapter 126 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 12101 of this title and Tables. AMENDMENTS 2008—Subsec. (b)(3). Pub. L. 110–289, § 2702(a), added par. (3). Subsec. (e)(4). Pub. L. 110–289, § 2702(b)(1), added par. (4). Subsec. (f). Pub. L. 110–289, § 2702(b)(1), inserted sub- sec. designation and heading. Subsec. (f)(5). Pub. L. 110–289, § 2702(b)(2), added par. (5). 2006—Subsec. (a)(1). Pub. L. 109–162, § 603(1)(A), sub- stituted ‘‘paragraph (3)’’ for ‘‘paragraph (2)’’. Subsec. (a)(2), (3). Pub. L. 109–162, § 603(1)(B), (C), added par. (2) and redesignated former par. (2) as (3). Subsec. (d)(13) to (19). Pub. L. 109–162, § 603(2), (3), added par. (13) and redesignated former pars. (13) to (18) as (14) to (19), respectively. Statutory Notes and Related Subsidiaries EFFECTIVE DATE Pub. L. 105–276, title V, § 511(e), Oct. 21, 1998, 112 Stat. 2539, provided that: ‘‘This section [enacting this sec- tion, amending section 1437d of this title, and enacting provisions set out as notes under this section] shall take effect, and the amendments made by this section are made on, and shall apply beginning upon, the date of the enactment of this Act [Oct. 21, 1998].’’ REGULATIONS Pub. L. 105–276, title V, § 511(b), Oct. 21, 1998, 112 Stat. 2538, provided that: ‘‘(1) INTERIM RULE.—Not later than 120 days after the date of the enactment of this Act [Oct. 21, 1998], the Secretary shall issue an interim rule to require the submission of an interim public housing agency plan by each public housing agency, as required by section 5A of the United States Housing Act of 1937 [42 U.S.C. 1437c–1] (as added by subsection (a) of this section). The interim rule shall provide for a public comment period of not less than 60 days. ‘‘(2) FINAL REGULATIONS.—Not later than 1 year after the date of the enactment of this Act [Oct. 21, 1998], the Secretary shall issue final regulations implementing section 5A of the United States Housing Act of 1937 [42 U.S.C. 1437c–1] (as added by subsection (a) of this sec- tion). ‘‘(3) FACTORS FOR CONSIDERATION.—Before the publica- tion of the final regulations under paragraph (2), in ad- dition to public comments invited in connection with the publication of the interim rule, the Secretary shall— ‘‘(A) seek recommendations on the implementation of section 5A of the United States Housing Act of 1937 [42 U.S.C. 1437c–1] (as added by this [sic] subsection (a) of this section) from organizations representing— ‘‘(i) State or local public housing agencies; ‘‘(ii) residents, including resident management corporations; and ‘‘(iii) other appropriate parties; and ‘‘(B) convene not less than 2 public forums at which the persons or organizations making recommenda- tions under subparagraph (A) may express views con- cerning the proposed disposition of the recommenda- tions. The Secretary shall publish in the final rule a summary of the recommendations made and public comments re- ceived and the Department of Housing and Urban De- velopment’s response to such recommendations and comments.’’ AUDIT AND REVIEW; REPORT Pub. L. 105–276, title V, § 511(c), Oct. 21, 1998, 112 Stat. 2538, provided that: ‘‘(1) AUDIT AND REVIEW.—Not later than 1 year after the effective date of final regulations issued under sub- section (b)(2) [set out as a note above], in order to de- termine the degree of compliance, by public housing agencies, with public housing agency plans approved under section 5A of the United States Housing Act of 1937 [42 U.S.C. 1437c–1] (as added by subsection (a) of this section), the Comptroller General of the United States shall conduct— ‘‘(A) a review of a representative sample of the pub- lic housing agency plans approved under such section 5A before such date; and ‘‘(B) an audit and review of the public housing agencies submitting such plans. ‘‘(2) REPORT.—Not later than 2 years after the date on which public housing agency plans are initially re- quired to be submitted under section 5A of the United States Housing Act of 1937 [42 U.S.C. 1437c–1] (as added by subsection (a) of this section) the Comptroller Gen- eral of the United States shall submit to the Congress a report, which shall include— ‘‘(A) a description of the results of each audit and review under paragraph (1); and ‘‘(B) any recommendations for increasing compli- ance by public housing agencies with their public housing agency plans approved under section 5A of the United States Housing Act of 1937 (as added by subsection (a) of this section).’’ § 1437d. Contract provisions and requirements; loans and annual contributions (a) Conditions; elevators The Secretary may include in any contract for loans, contributions, sale, lease, mortgage, or any other agreement or instrument made pursu- ant to this chapter, such covenants, conditions, or provisions as he may deem necessary in order to insure the lower income character of the project involved, in a manner consistent with the public housing agency plan. Any such con- tract shall require that, except in the case of housing predominantly for elderly or disabled families, high-rise elevator projects shall not be provided for families with children unless the Secretary makes a determination that there is no practical alternative. (b) Limitation on development costs (1) Each contract for loans (other than pre- liminary loans) or contributions for the develop- Page 4560 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437d 1 So in original. Probably should be ‘‘is’’. ment, acquisition, or operation of public hous- ing shall provide that the total development cost of the project on which the computation of any annual contributions under this chapter may be based may not exceed the amount deter- mined under paragraph (2) (for the appropriate structure type) unless the Secretary provides otherwise, and in any case may not exceed 110 per centum of such amount unless the Secretary for good cause determines otherwise. (2) For purposes of paragraph (1), the Sec- retary shall determine the total development cost by multiplying the construction cost guide- line for the project (which shall be determined by averaging the current construction costs, as listed by not less than 2 nationally recognized residential construction cost indices, for pub- licly bid construction of a good and sound qual- ity) by— (A) in the case of elevator type structures, 1.6; and (B) in the case of nonelevator type struc- tures, 1.75. (3) In calculating the total development cost of a project under paragraph (2), the Secretary shall consider only capital assistance provided by the Secretary to a public housing agency that are 1 authorized for use in connection with the development of public housing, and shall ex- clude all other amounts, including amounts pro- vided under— (A) the HOME investment partnerships pro- gram authorized under title II of the Cranston- Gonzalez National Affordable Housing Act [42 U.S.C. 12721 et seq.]; or (B) the community development block grants program under title I of the Housing and Community Development Act of 1974 [42 U.S.C. 5301 et seq.]. (4) The Secretary may restrict the amount of capital funds that a public housing agency may use to pay for housing construction costs. For purposes of this paragraph, housing construction costs include the actual hard costs for the con- struction of units, builders’ overhead and profit, utilities from the street, and finish landscaping. (c) Revision of maximum income limits; certifi- cation of compliance with requirements; no- tification of eligibility; informal hearing; compliance with procedures for sound man- agement Every contract for contributions shall provide that— (1) the Secretary may require the public housing agency to review and revise its max- imum income limits if the Secretary deter- mines that changed conditions in the locality make such revision necessary in achieving the purposes of this chapter; (2) the public housing agency shall deter- mine, and so certify to the Secretary, that each family in the project was admitted in ac- cordance with duly adopted regulations and approved income limits; and the public hous- ing agency shall review the incomes of fami- lies living in the project no less frequently than annually; (3) the public housing agency shall promptly notify (i) any applicant determined to be ineli- gible for admission to the project of the basis for such determination and provide the appli- cant upon request, within a reasonable time after the determination is made, with an op- portunity for an informal hearing on such de- termination, and (ii) any applicant determined to be eligible for admission to the project of the approximate date of occupancy insofar as such date can be reasonably determined; and (4) the public housing agency shall comply with such procedures and requirements as the Secretary may prescribe to assure that sound management practices will be followed in the operation of the project, including require- ments pertaining to— (A) making dwelling units in public hous- ing available for occupancy, which shall pro- vide that the public housing agency may es- tablish a system for making dwelling units available that provides preference for such occupancy to families having certain charac- teristics; each system of preferences estab- lished pursuant to this subparagraph shall be based upon local housing needs and prior- ities, as determined by the public housing agency using generally accepted data sources, including any information obtained pursuant to an opportunity for public com- ment as provided under section 1437c–1(f) of this title and under the requirements appli- cable to the comprehensive housing afford- ability strategy for the relevant jurisdic- tion; (B) the establishment of satisfactory pro- cedures designed to assure the prompt pay- ment and collection of rents and the prompt processing of evictions in the case of non- payment of rent; (C) the establishment of effective tenant- management relationships designed to as- sure that satisfactory standards of tenant security and project maintenance are formu- lated and that the public housing agency (to- gether with tenant councils where they exist) enforces those standards fully and ef- fectively; (D) the development by local housing au- thority managements of viable homeowner- ship opportunity programs for low-income families capable of assuming the responsibil- ities of homeownership; (E) for each agency that receives assist- ance under this subchapter, the establish- ment and maintenance of a system of ac- counting for rental collections and costs (in- cluding administrative, utility, mainte- nance, repair and other operating costs) for each project or operating cost center (as de- termined by the Secretary), which collec- tions and costs shall be made available to the general public and submitted to the ap- propriate local public official (as determined by the Secretary); except that the Secretary may permit agencies owning or operating less than 500 units to comply with the re- quirements of this subparagraph by account- ing on an agency-wide basis; and (F) requiring the public housing agency to ensure and maintain compliance with sub- Page 4561 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437d title C of title VI of the Housing and Com- munity Development Act of 1992 [42 U.S.C. 13601 et seq.] and any regulations issued under such subtitle. (d) Exemption from personal and real property taxes; payments in lieu of taxes; cash con- tribution or tax remission Every contract for contributions with respect to a low-income housing project shall provide that no contributions by the Secretary shall be made available for such project unless such project (exclusive of any portion thereof which is not assisted by contributions under this chap- ter) is exempt from all real and personal prop- erty taxes levied or imposed by the State, city, county, or other political subdivision; and such contract shall require the public housing agency to make payments in lieu of taxes equal to 10 per centum of the sum of the shelter rents charged in such project, or such lesser amount as (i) is prescribed by State law, or (ii) is agreed to by the local governing body in its agreement for local cooperation with the public housing agency required under section 1437c(e)(2) of this title, or (iii) is due to failure of a local public body or bodies other than the public housing agency to perform any obligation under such agreement. If any such project is not exempt from all real and personal property taxes levied or imposed by the State, city, county, or other political subdivision, such contract shall pro- vide, in lieu of the requirement for tax exemp- tion and payments in lieu of taxes, that no con- tributions by the Secretary shall be made avail- able for such project unless and until the State, city, county, or other political subdivision in which such project is situated shall contribute, in the form of cash or tax remission, the amount by which the taxes paid with respect to the project exceed 10 per centum of the shelter rents charged in such project. (e) Repealed. Pub. L. 105–276, title V, § 529(2), Oct. 21, 1998, 112 Stat. 2569 (f) Housing quality requirements (1) In general Each contract for contributions for a public housing agency shall require that the agency maintain its public housing in a condition that complies with standards which meet or exceed the housing quality standards estab- lished under paragraph (2). (2) Federal standards The Secretary shall establish housing qual- ity standards under this paragraph that ensure that public housing dwelling units are safe and habitable. Such standards shall include re- quirements relating to habitability, including maintenance, health and sanitation factors, condition, and construction of dwellings, and shall, to the greatest extent practicable, be consistent with the standards established under section 1437f(o)(8)(B)(i) of this title. The Secretary may determine whether the laws, regulations, standards, or codes of any State or local jurisdiction meet or exceed these standards, for purposes of this subsection. (3) Annual inspections Each public housing agency that owns or op- erates public housing shall make an annual in- spection of each public housing project to de- termine whether units in the project are main- tained in accordance with the requirements under paragraph (1). The agency shall retain the results of such inspections and, upon the request of the Secretary, the Inspector Gen- eral for the Department of Housing and Urban Development, or any auditor conducting an audit under section 1437c(h) of this title, shall make such results available. (g) Substantial default; conveyance of title and delivery of possession; reconveyance and re- delivery; payments for outstanding obliga- tions Every contract for contributions (including contracts which amend or supersede contracts previously made) may provide that— (1) upon the occurrence of a substantial de- fault in respect to the covenants or conditions to which the public housing agency is subject (as such substantial default shall be defined in such contract), the public housing agency shall be obligated at the option of the Sec- retary either to convey title in any case where, in the determination of the Secretary (which determination shall be final and con- clusive), such conveyance of title is necessary to achieve the purposes of this chapter, or to deliver to the Secretary possession of the project, as then constituted, to which such contract relates; and (2) the Secretary shall be obligated to re- convey or redeliver possession of the project as constituted at the time of reconveyance or redelivery, to such public housing agency or to its successor (if such public housing agency or a successor exists) upon such terms as shall be prescribed in such contract, and as soon as practicable (i) after the Secretary is satisfied that all defaults with respect to the project have been cured, and that the project will, in order to fulfill the purposes of this chapter, thereafter be operated in accordance with the terms of such contract; or (ii) after the termi- nation of the obligation to make annual con- tributions available unless there are any obli- gations or covenants of the public housing agency to the Secretary which are then in de- fault. Any prior conveyances and reconvey- ances or deliveries and redeliveries of posses- sion shall not exhaust the right to require a conveyance or delivery of possession of the project to the Secretary pursuant to subpara- graph (1) upon the subsequent occurrence of a substantial default. Whenever such a contract for annual contribu- tions includes provisions which the Secretary in such contract determines are in accordance with this subsection, and the portion of the annual contribution payable for debt service require- ments pursuant to such contract has been pledged by the public housing agency as security for the payment of the principal and interest on any of its obligations, the Secretary (notwith- standing any other provisions of this chapter) shall continue to make such annual contribu- tions available for the project so long as any of such obligations remain outstanding, and may covenant in such contract that in any event such annual contributions shall in each year be Page 4562 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437d 2 Another subpar. (I) is set out after subpar. (K). 3 Another subpar. (I) is set out before subpar. (J). 4 See References in Text note below. at least equal to an amount which, together with such income or other funds as are actually available from the project for the purpose at the time such annual contribution is made, will suf- fice for the payment of all installments, falling due within the next succeeding twelve months, of principal and interest on the obligations for which the annual contributions provided for in the contract shall have been pledged as security. In no case shall such annual contributions be in excess of the maximum sum specified in the con- tract involved, nor for longer than the remain- der of the maximum period fixed by the con- tract. (h) New construction contracts On or after October 1, 1983, the Secretary may enter into a contract involving new construc- tion only if the public housing agency dem- onstrates to the satisfaction of the Secretary that the cost of new construction in the neigh- borhood where the public housing agency deter- mines the housing is needed is less than the cost of acquisition or acquisition and rehabilitation in such neighborhood, including any reserve fund under subsection (i), would be. (i) Reserve fund; major repairs The Secretary may, upon application by a public housing agency in connection with the acquisition of housing for use as public housing, establish and set aside a reserve fund in an amount not to exceed 30 per centum of the ac- quisition cost which shall be available for use for major repairs to such housing. (j) Performance indicators for public housing agencies (1) The Secretary shall develop and publish in the Federal Register indicators to assess the management performance of public housing agencies and resident management corporations. The indicators shall be established by rule under section 553 of title 5. Such indicators shall en- able the Secretary to evaluate the performance of public housing agencies and resident manage- ment corporations in all major areas of manage- ment operations. The Secretary shall, in par- ticular, use the following indicators for public housing agencies, to the extent practicable: (A) The number and percentage of vacancies within an agency’s inventory, including the progress that an agency has made within the previous 3 years to reduce such vacancies. (B) The amount and percentage of funds pro- vided to the public housing agency from the Capital Fund under section 1437g(d) of this title which remain unobligated by the public housing agency after 3 years. (C) The percentage of rents uncollected. (D) The utility consumption (with appro- priate adjustments to reflect different regions and unit sizes). (E) The average period of time that an agen- cy requires to repair and turn-around vacant units. (F) The proportion of maintenance work or- ders outstanding, including any progress that an agency has made during the preceding 3 years to reduce the period of time required to complete maintenance work orders. (G) The percentage of units that an agency fails to inspect to ascertain maintenance or modernization needs within such period of time as the Secretary deems appropriate (with appropriate adjustments, if any, for large and small agencies). (H) The extent to which the public housing agency— (i) coordinates, promotes, or provides ef- fective programs and activities to promote the economic self-sufficiency of public hous- ing residents; and (ii) provides public housing residents with opportunities for involvement in the admin- istration of the public housing. (I) 2 The extent to which the public housing agency— (i) implements effective screening and eviction policies and other anticrime strate- gies; and (ii) coordinates with local government offi- cials and residents in the project and imple- mentation of such strategies. (J) The extent to which the public housing agency is providing acceptable basic housing conditions. (K) Any other factors as the Secretary deems appropriate which shall not exceed the seven factors in the statute, plus an additional five. (I) 3 The Secretary shall: (1) administer the system of evaluating public housing agencies flexibly to ensure that such agencies are not penalized as re- sult of circumstances beyond their control; (2) reflect in the weights assigned to the various indicators the differences in the dif- ficulty of managing individual projects that result from their physical condition and their neighborhood environment; and (3) determine a public housing agency’s status as ‘‘troubled with respect to the pro- gram under section 1437l 4 of this title’’ based upon factors solely related to its ability to carry out that program. (2)(A)(i) The Secretary shall, under the rule- making procedures under section 553 of title 5, establish procedures for designating troubled public housing agencies, which procedures shall include identification of serious and substantial failure to perform as measured by the perform- ance indicators specified under paragraph (1) and such other factors as the Secretary may deem to be appropriate. Such procedures shall provide that an agency that fails on a wide- spread basis to provide acceptable basic housing conditions for its residents shall be designated as a troubled public housing agency. The Sec- retary may use a simplified set of indicators for public housing agencies with less than 250 public housing units. The Secretary shall also des- ignate, by rule under section 553 of title 5, agen- cies that are troubled with respect to the pro- gram for assistance from the Capital Fund under section 1437g(d) of this title. (ii) The Secretary may also, in consultation with national organizations representing public housing agencies and public officials (as the Sec- Page 4563 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437d 5 So in original. The word ‘‘and’’ probably should not appear. retary determines appropriate), identify and commend public housing agencies that meet the performance standards established under para- graph (1) in an exemplary manner. (iii) The Secretary shall establish procedures for public housing agencies to appeal designa- tion as a troubled agency (including designation as a troubled agency for purposes of the program for assistance from the Capital Fund under sec- tion 1437g(d) of this title), to petition for re- moval of such designation, and to appeal any re- fusal to remove such designation. (B)(i) Upon designating a public housing agen- cy with more than 250 units as troubled pursu- ant to subparagraph (A) and determining that an assessment under this subparagraph will not duplicate any comparable and recent review, the Secretary shall provide for an on-site, inde- pendent assessment of the management of the agency. (ii) To the extent the Secretary deems appro- priate (taking into account an agency’s perform- ance under the indicators specified under para- graph (1)), the assessment team shall also con- sider issues relating to the agency’s resident population and physical inventory, including the extent to which (I) the agency’s comprehen- sive plan prepared pursuant to section 1437l 4 of this title adequately and appropriately address- es the rehabilitation needs of the agency’s in- ventory, (II) residents of the agency are involved in and informed of significant management deci- sions, and (III) any projects in the agency’s in- ventory are severely distressed and eligible for assistance pursuant to section 1437v of this title. (iii) An independent assessment under this subparagraph shall be carried out by a team of knowledgeable individuals selected by the Sec- retary (referred to in this section as the ‘‘assess- ment team’’) with expertise in public housing and real estate management. In conducting an assessment, the assessment team shall consult with the residents and with public and private entities in the jurisdiction in which the public housing is located. The assessment team shall provide to the Secretary and the public housing agency a written report, which shall contain, at a minimum, recommendations for such manage- ment improvements as are necessary to elimi- nate or substantially remedy existing defi- ciencies. (C) The Secretary shall seek to enter into an agreement with each troubled public housing agency, after reviewing the report submitted pursuant to subparagraph (B) (if applicable) and consulting with the agency’s assessment team. Such agreement shall set forth— (i) targets for improving performance as measured by the performance indicators speci- fied under paragraph (1) and other require- ments within a specified period of time; (ii) strategies for meeting such targets, in- cluding a description of the technical assist- ance that the Secretary will make available to the agency; and (iii) incentives or sanctions for effective im- plementation of such strategies, which may include any constraints on the use of funds that the Secretary determines are appro- priate. To the extent the Secretary deems appropriate (taking into account an agency’s performance under the indicators specified under paragraph (1)), such agreement shall also set forth a plan for enhancing resident involvement in the man- agement of the public housing agency. The Sec- retary and the public housing agency shall, to the maximum extent practicable, seek the as- sistance of local public and private entities in carrying out the agreement. (D) The Secretary shall apply the provisions of this paragraph to resident management corpora- tions as well as public housing agencies. (3)(A) Notwithstanding any other provision of law or of any contract for contributions, upon the occurrence of events or conditions that con- stitute a substantial default by a public housing agency with respect to the covenants or condi- tions to which the public housing agency is sub- ject or an agreement entered into under para- graph (2), the Secretary may— (i) solicit competitive proposals from other public housing agencies and private housing management agents which (I) in the discretion of the Secretary, may be selected by existing public housing residents through administra- tive procedures established by the Secretary, and (II) if appropriate, shall provide for such agents to manage all, or part, of the housing administered by the public housing agency or all or part of the other programs of the agen- cy; (ii) petition for the appointment of a re- ceiver (which may be another public housing agency or a private management corporation) of the public housing agency to any district court of the United States or to any court of the State in which the real property of the public housing agency is situated, that is au- thorized to appoint a receiver for the purposes and having the powers prescribed in this sub- section; (iii) solicit competitive proposals from other public housing agencies and private entities with experience in construction management in the eventuality that such agencies or firms may be needed to oversee implementation of assistance made available from the Capital Fund under section 1437g(d) of this title for the housing; and 5 (iv) take possession of all or part of the pub- lic housing agency, including all or part of any project or program of the agency, including any project or program under any other provi- sion of this subchapter; and (v) require the agency to make other ar- rangements acceptable to the Secretary and in the best interests of the public housing resi- dents and families assisted under section 1437f of this title for managing all, or part, of the public housing administered by the agency or of the programs of the agency. Residents of a public housing agency designated as troubled pursuant to paragraph (2)(A) may pe- tition the Secretary in writing to take 1 or more of the actions referred to in this subparagraph. The Secretary shall respond to such petitions in a timely manner with a written description of the actions, if any, the Secretary plans to take and, where applicable, the reasons why such ac- Page 4564 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437d tions differ from the course proposed by the resi- dents. (B)(i) If a public housing agency is identified as troubled under this subsection, the Secretary shall notify the agency of the troubled status of the agency. (ii)(I) Upon the expiration of the 1-year period beginning on the later of the date on which the agency receives initial notice from the Sec- retary of the troubled status of the agency under clause (i) and October 21, 1998, the agency shall improve its performance, as measured by the performance indicators established pursuant to paragraph (1), by at least 50 percent of the dif- ference between the most recent performance measurement and the measurement necessary to remove that agency’s designation as troubled. (II) Upon the expiration of the 2-year period beginning on the later of the date on which the agency receives initial notice from the Sec- retary of the troubled status of the agency under clause (i) and October 21, 1998, the agency shall improve its performance, as measured by the performance indicators established pursuant to paragraph (1), such that the agency is no longer designated as troubled. (III) In the event that a public housing agency designated as troubled under this subsection fails to comply with the requirements set forth in subclause (I) or (II), the Secretary shall— (aa) in the case of a troubled public housing agency with 1,250 or more units, petition for the appointment of a receiver pursuant to sub- paragraph (A)(ii); or (bb) in the case of a troubled public housing agency with fewer than 1,250 units, either peti- tion for the appointment of a receiver pursu- ant to subparagraph (A)(ii), or take possession of the public housing agency (including all or part of any project or program of the agency) pursuant to subparagraph (A)(iv) and appoint, on a competitive or noncompetitive basis, an individual or entity as an administrative re- ceiver to assume the responsibilities of the Secretary for the administration of all or part of the public housing agency (including all or part of any project or program of the agency). This subparagraph shall not be construed to limit the courses of action available to the Sec- retary under subparagraph (A). (IV) During the period between the date on which a petition is filed under subclause (III)(aa) and the date on which a receiver assumes re- sponsibility for the management of the public housing agency under such subclause, the Sec- retary may take possession of the public hous- ing agency (including all or part of any project or program of the agency) pursuant to subpara- graph (A)(iv) and may appoint, on a competitive or noncompetitive basis, an individual or entity as an administrative receiver to assume the re- sponsibilities of the Secretary for the adminis- tration of all or part of the public housing agen- cy (including all or part of any project or pro- gram of the agency). (C) If a receiver is appointed pursuant to sub- paragraph (A)(ii), in addition to the powers ac- corded by the court appointing the receiver, the receiver— (i) may abrogate any contract to which the United States or an agency of the United States is not a party that, in the receiver’s written determination (which shall include the basis for such determination), substan- tially impedes correction of the substantial default, but only after the receiver determines that reasonable efforts to renegotiate such contract have failed; (ii) may demolish and dispose of all or part of the assets of the public housing agency (in- cluding all or part of any project of the agen- cy) in accordance with section 1437p of this title, including disposition by transfer of prop- erties to resident-supported nonprofit entities; (iii) if determined to be appropriate by the Secretary, may seek the establishment, as permitted by applicable State and local law, of 1 or more new public housing agencies; (iv) if determined to be appropriate by the Secretary, may seek consolidation of all or part of the agency (including all or part of any project or program of the agency), as per- mitted by applicable State and local laws, into other well-managed public housing agencies with the consent of such well-managed agen- cies; and (v) shall not be required to comply with any State or local law relating to civil service re- quirements, employee rights (except civil rights), procurement, or financial or adminis- trative controls that, in the receiver’s written determination (which shall include the basis for such determination), substantially impedes correction of the substantial default. (D)(i) If, pursuant to subparagraph (A)(iv), the Secretary takes possession of all or part of the public housing agency, including all or part of any project or program of the agency, the Sec- retary— (I) may abrogate any contract to which the United States or an agency of the United States is not a party that, in the written de- termination of the Secretary (which shall in- clude the basis for such determination), sub- stantially impedes correction of the substan- tial default, but only after the Secretary de- termines that reasonable efforts to renego- tiate such contract have failed; (II) may demolish and dispose of all or part of the assets of the public housing agency (in- cluding all or part of any project of the agen- cy) in accordance with section 1437p of this title, including disposition by transfer of prop- erties to resident-supported nonprofit entities; (III) may seek the establishment, as per- mitted by applicable State and local law, of 1 or more new public housing agencies; (IV) may seek consolidation of all or part of the agency (including all or part of any project or program of the agency), as per- mitted by applicable State and local laws, into other well-managed public housing agencies with the consent of such well-managed agen- cies; (V) shall not be required to comply with any State or local law relating to civil service re- quirements, employee rights (except civil rights), procurement, or financial or adminis- trative controls that, in the Secretary’s writ- ten determination (which shall include the basis for such determination), substantially impedes correction of the substantial default; and Page 4565 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437d 6 So in original. The word ‘‘this’’ probably should not appear. (VI) shall, without any action by a district court of the United States, have such addi- tional authority as a district court of the United States would have the authority to confer upon a receiver to achieve the purposes of the receivership. (ii) If, pursuant to subparagraph (B)(ii)(III)(bb), the Secretary appoints an admin- istrative receiver to assume the responsibilities of the Secretary for the administration of all or part of the public housing agency (including all or part of any project or program of the agency), the Secretary may delegate to the administra- tive receiver any or all of the powers given the Secretary by this subparagraph, as the Sec- retary determines to be appropriate and subject to clause (iii). (iii) An administrative receiver may not take an action described in subclause (III) or (IV) of clause (i) unless the Secretary first approves an application by the administrative receiver to authorize such action. (E) The Secretary may make available to re- ceivers and other entities selected or appointed pursuant to this paragraph such assistance as the Secretary determines in the discretion of the Secretary is necessary and available to rem- edy the substantial deterioration of living con- ditions in individual public housing projects or other related emergencies that endanger the health, safety, and welfare of public housing residents or families assisted under section 1437f of this title. A decision made by the Secretary under this paragraph shall not be subject to re- view in any court of the United States, or in any court of any State, territory, or possession of the United States. (F) In any proceeding under subparagraph (A)(ii), upon a determination that a substantial default has occurred and without regard to the availability of alternative remedies, the court shall appoint a receiver to conduct the affairs of all or part of the public housing agency in a manner consistent with this chapter and in ac- cordance with such further terms and conditions as the court may provide. The receiver ap- pointed may be another public housing agency, a private management corporation, or any other person or appropriate entity. The court shall have power to grant appropriate temporary or preliminary relief pending final disposition of the petition by the Secretary. (G) The appointment of a receiver pursuant to this paragraph may be terminated, upon the pe- tition of any party, when the court determines that all defaults have been cured or the public housing agency is capable again of discharging its duties. (H) If the Secretary (or an administrative re- ceiver appointed by the Secretary) takes posses- sion of a public housing agency (including all or part of any project or program of the agency), or if a receiver is appointed by a court, the Sec- retary or receiver shall be deemed to be acting not in the official capacity of that person or en- tity, but rather in the capacity of the public housing agency, and any liability incurred, re- gardless of whether the incident giving rise to that liability occurred while the Secretary or receiver was in possession of all or part of the public housing agency (including all or part of any project or program of the agency), shall be the liability of the public housing agency. (4) SANCTIONS FOR IMPROPER USE OF AMOUNTS.— (A) IN GENERAL.—In addition to any other actions authorized under this chapter, if the Secretary finds that a public housing agency receiving assistance amounts under section 1437g of this title for public housing has failed to comply substantially with any provision of this chapter relating to the public housing program, the Secretary may— (i) terminate assistance payments under this 6 section 1437g of this title to the agen- cy; (ii) withhold from the agency amounts from the total allocations for the agency pursuant to section 1437g of this title; (iii) reduce the amount of future assist- ance payments under section 1437g of this title to the agency by an amount equal to the amount of such payments that were not expended in accordance with this chapter; (iv) limit the availability of assistance amounts provided to the agency under sec- tion 1437g of this title to programs, projects, or activities not affected by such failure to comply; (v) withhold from the agency amounts al- located for the agency under section 1437f of this title; or (vi) order other corrective action with re- spect to the agency. (B) TERMINATION OF COMPLIANCE ACTION.—If the Secretary takes action under subpara- graph (A) with respect to a public housing agency, the Secretary shall— (i) in the case of action under subpara- graph (A)(i), resume payments of assistance amounts under section 1437g of this title to the agency in the full amount of the total allocations under section 1437g of this title for the agency at the time that the Sec- retary first determines that the agency will comply with the provisions of this chapter relating to the public housing program; (ii) in the case of action under clause (ii) or (v) of subparagraph (A), make withheld amounts available as the Secretary con- siders appropriate to ensure that the agency complies with the provisions of this chapter relating to such program; (iii) in the case of action under subpara- graph (A)(iv), release such restrictions at the time that the Secretary first determines that the agency will comply with the provi- sions of this chapter relating to such pro- gram; or (iv) in the case of action under subpara- graph (vi), cease such action at the time that the Secretary first determines that the agency will comply with the provisions of this chapter relating to such program. (5) The Secretary shall submit to the Congress annually, as a part of the report of the Sec- retary under section 3536 of this title, a report that— (A) identifies the public housing agencies that have been designated as troubled under paragraph (2); Page 4566 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437d (B) describes the grounds on which such pub- lic housing agencies were designated as trou- bled and continue to be so designated; (C) describes the agreements that have been entered into with such agencies under such paragraph; (D) describes the status of progress under such agreements; (E) describes any action that has been taken in accordance with paragraph (3), including an accounting of the authorized funds that have been expended to support such actions; and (F) describes the status of any public hous- ing agency designated as troubled with respect to the program for assistance from the Capital Fund under section 1437g(d) of this title and specifies the amount of assistance the agency received under such program. (6)(A) To the extent that the Secretary deter- mines such action to be necessary in order to ensure the accuracy of any certification made under this section, the Secretary shall require an independent auditor to review documentation or other information maintained by a public housing agency pursuant to this section to sub- stantiate each certification submitted by the agency or corporation relating to the perform- ance of that agency or corporation. (B) The Secretary may withhold, from assist- ance otherwise payable to the agency or cor- poration under section 1437g of this title, amounts sufficient to pay for the reasonable costs of any review under this paragraph. (7) The Secretary shall apply the provisions of this subsection to resident management cor- porations in the same manner as applied to pub- lic housing agencies. (k) Administrative grievance procedure regula- tions: grounds of adverse action, hearing, ex- amination of documents, representation, evi- dence, decision; judicial hearing; eviction and termination procedures The Secretary shall by regulation require each public housing agency receiving assistance under this chapter to establish and implement an administrative grievance procedure under which tenants will— (1) be advised of the specific grounds of any proposed adverse public housing agency ac- tion; (2) have an opportunity for a hearing before an impartial party upon timely request within any period applicable under subsection (l); (3) have an opportunity to examine any doc- uments or records or regulations related to the proposed action; (4) be entitled to be represented by another person of their choice at any hearing; (5) be entitled to ask questions of witnesses and have others make statements on their be- half; and (6) be entitled to receive a written decision by the public housing agency on the proposed action. For any grievance concerning an eviction or ter- mination of tenancy that involves any activity that threatens the health, safety, or right to peaceful enjoyment of the premises of other ten- ants or employees of the public housing agency or any violent or drug-related criminal activity on or off such premises, or any activity result- ing in a felony conviction, the agency may (A) establish an expedited grievance procedure as the Secretary shall provide by rule under sec- tion 553 of title 5, or (B) exclude from its griev- ance procedure any such grievance, in any juris- diction which requires that prior to eviction, a tenant be given a hearing in court which the Secretary determines provides the basic ele- ments of due process (which the Secretary shall establish by rule under section 553 of title 5). Such elements of due process shall not include a requirement that the tenant be provided an op- portunity to examine relevant documents with- in the possession of the public housing agency. The agency shall provide to the tenant a reason- able opportunity, prior to hearing or trial, to ex- amine any relevant documents, records, or regu- lations directly related to the eviction or termi- nation. (l) Leases; terms and conditions; maintenance; termination Each public housing agency shall utilize leases which— (1) have a term of 12 months and shall be automatically renewed for all purposes except for noncompliance with the requirements under section 1437j(c) of this title (relating to community service requirements); except that nothing in this subchapter shall prevent a resident from seeking timely redress in court for failure to renew based on such noncompli- ance; (2) do not contain unreasonable terms and conditions; (3) obligate the public housing agency to maintain the project in a decent, safe, and sanitary condition; (4) require the public housing agency to give adequate written notice of termination of the lease which shall not be less than— (A) a reasonable period of time, but not to exceed 30 days— (i) if the health or safety of other ten- ants, public housing agency employees, or persons residing in the immediate vicinity of the premises is threatened; or (ii) in the event of any drug-related or violent criminal activity or any felony conviction; (B) 14 days in the case of nonpayment of rent; and (C) 30 days in any other case, except that if a State or local law provides for a shorter period of time, such shorter period shall apply; (5) require that the public housing agency may not terminate the tenancy except for se- rious or repeated violation of the terms or conditions of the lease or for other good cause; (6) provide that any criminal activity that threatens the health, safety, or right to peace- ful enjoyment of the premises by other ten- ants or any drug-related criminal activity on or off such premises, engaged in by a public housing tenant, any member of the tenant’s household, or any guest or other person under the tenant’s control, shall be cause for termi- nation of tenancy; Page 4567 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437d 7 So in original. Probably should be ‘‘(8)’’. 8 So in original. Probably should be followed by ‘‘and’’. 9 So in original. Probably should be ‘‘(B)’’. (7) specify that with respect to any notice of eviction or termination, notwithstanding any State law, a public housing tenant shall be in- formed of the opportunity, prior to any hear- ing or trial, to examine any relevant docu- ments, records, or regulations directly related to the eviction or termination; (7) 7 provide that any occupancy in violation of section 13661(b) of this title (relating to in- eligibility of illegal drug users and alcohol abusers) or the furnishing of any false or mis- leading information pursuant to section 13662 of this title (relating to termination of ten- ancy and assistance for illegal drug users and alcohol abusers) shall be cause for termination of tenancy; 8 (9) provide that it shall be cause for imme- diate termination of the tenancy of a public housing tenant if such tenant— (A) is fleeing to avoid prosecution, or cus- tody or confinement after conviction, under the laws of the place from which the indi- vidual flees, for a crime, or attempt to com- mit a crime, which is a felony under the laws of the place from which the individual flees, or which, in the case of the State of New Jersey, is a high misdemeanor under the laws of such State; or (2) 9 is violating a condition of probation or parole imposed under Federal or State law. For purposes of paragraph (5),4 the term ‘‘drug- related criminal activity’’ means the illegal manufacture, sale, distribution, use, or posses- sion with intent to manufacture, sell, distribute, or use, of a controlled substance (as defined in section 802 of title 21). (m) Reporting requirements; limitation The Secretary shall not impose any unneces- sarily duplicative or burdensome reporting re- quirements on tenants or public housing agen- cies assisted under this chapter. (n) Notice to post office regarding eviction for criminal activity When a public housing agency evicts an indi- vidual or family from a dwelling unit for engag- ing in criminal activity, including drug-related criminal activity, the public housing agency shall notify the local post office serving that dwelling unit that such individual or family is no longer residing in the dwelling unit. (o) Public housing assistance for foster care chil- dren In providing housing in low-income housing projects, each public housing agency may co- ordinate with any local public agencies involved in providing for the welfare of children to make available dwelling units to— (1) families identified by the agencies as hav- ing a lack of adequate housing that is a pri- mary factor— (A) in the imminent placement of a child in foster care; or (B) in preventing the discharge of a child from foster care and reunification with his or her family; and (2) youth, upon discharge from foster care, in cases in which return to the family or ex- tended family or adoption is not available. (p) Repealed. Pub. L. 105–276, title V, § 519(b), Oct. 21, 1998, 112 Stat. 2561 (q) Availability of records (1) In general (A) Provision of information Notwithstanding any other provision of law, except as provided in subparagraph (C), the National Crime Information Center, po- lice departments, and other law enforcement agencies shall, upon request, provide infor- mation to public housing agencies regarding the criminal conviction records of adult ap- plicants for, or tenants of, covered housing assistance for purposes of applicant screen- ing, lease enforcement, and eviction. (B) Requests by owners of project-based sec- tion 8 [42 U.S.C. 1437f] housing A public housing agency may make a re- quest under subparagraph (A) for informa- tion regarding applicants for, or tenants of, housing that is provided project-based as- sistance under section 1437f of this title only if the housing is located within the jurisdic- tion of the agency and the owner of such housing has requested that the agency ob- tain such information on behalf of the owner. Upon such a request by the owner, the agency shall make a request under sub- paragraph (A) for the information. The agen- cy may not make such information available to the owner but shall perform determina- tions for the owner regarding screening, lease enforcement, and eviction based on cri- teria supplied by the owner. (C) Exception A law enforcement agency described in subparagraph (A) shall provide information under this paragraph relating to any crimi- nal conviction of a juvenile only to the ex- tent that the release of such information is authorized under the law of the applicable State, tribe, or locality. (2) Opportunity to dispute Before an adverse action is taken with re- gard to assistance under this subchapter on the basis of a criminal record, the public hous- ing agency shall provide the tenant or appli- cant with a copy of the criminal record and an opportunity to dispute the accuracy and rel- evance of that record. (3) Fees A public housing agency may be charged a reasonable fee for information provided under paragraph (1). In the case of a public housing agency obtaining information pursuant to paragraph (1)(B) for another owner of housing, the agency may pass such fee on to the owner initiating the request and may charge addi- tional reasonable fees for making the request on behalf of the owner and taking other ac- tions for owners under this subsection. (4) Records management Each public housing agency shall establish and implement a system of records manage- Page 4568 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437d 10 So in original. Probably should be ‘‘includes’’. ment that ensures that any criminal record re- ceived by the public housing agency is— (A) maintained confidentially; (B) not misused or improperly dissemi- nated; and (C) destroyed, once the purpose for which the record was requested has been accom- plished. (5) Confidentiality A public housing agency receiving informa- tion under this subsection may use such infor- mation only for the purposes provided in this subsection and such information may not be disclosed to any person who is not an officer, employee, or authorized representative of the agency and who has a job-related need to have access to the information in connection with admission of applicants, eviction of tenants, or termination of assistance. For judicial evic- tion proceedings, disclosures may be made to the extent necessary. The Secretary shall, by regulation, establish procedures necessary to ensure that information provided under this subsection to a public housing agency is used, and confidentiality of such information is maintained, as required under this subsection. The Secretary shall establish standards for confidentiality of information obtained under this subsection by public housing agencies on behalf of owners. (6) Penalty Any person who knowingly and willfully re- quests or obtains any information concerning an applicant for, or tenant of, covered housing assistance pursuant to the authority under this subsection under false pretenses, or any person who knowingly and willfully discloses any such information in any manner to any individual not entitled under any law to re- ceive it, shall be guilty of a misdemeanor and fined not more than $5,000. The term ‘‘person’’ as used in this paragraph include 10 an officer, employee, or authorized representative of any public housing agency. (7) Civil action Any applicant for, or tenant of, covered housing assistance affected by (A) a negligent or knowing disclosure of information referred to in this subsection about such person by an officer, employee, or authorized representative of any public housing agency, which disclosure is not authorized by this subsection, or (B) any other negligent or knowing action that is in- consistent with this subsection, may bring a civil action for damages and such other relief as may be appropriate against any public housing agency responsible for such unauthor- ized action. The district court of the United States in the district in which the affected ap- plicant or tenant resides, in which such unau- thorized action occurred, or in which the offi- cer, employee, or representative alleged to be responsible for any such unauthorized action resides, shall have jurisdiction in such mat- ters. Appropriate relief that may be ordered by such district courts shall include reason- able attorney’s fees and other litigation costs. (8) Definitions For purposes of this subsection, the fol- lowing definitions shall apply: (A) Adult The term ‘‘adult’’ means a person who is 18 years of age or older, or who has been con- victed of a crime as an adult under any Fed- eral, State, or tribal law. (B) Covered housing assistance The term ‘‘covered housing assistance’’ means— (i) a dwelling unit in public housing; (ii) a dwelling unit in housing that is provided project-based assistance under section 1437f of this title, including new construction and substantial rehabilita- tion projects; and (iii) tenant-based assistance under sec- tion 1437f of this title. (C) Owner The term ‘‘owner’’ means, with respect to covered housing assistance described in sub- paragraph (B)(ii), the entity or private per- son (including a cooperative or public hous- ing agency) that has the legal right to lease or sublease dwelling units in the housing as- sisted. (r) Site-based waiting lists (1) Authority A public housing agency may establish pro- cedures for maintaining waiting lists for ad- missions to public housing projects of the agency, which may include (notwithstanding any other law, regulation, handbook, or notice to the contrary) a system of site-based waiting lists under which applicants may apply di- rectly at or otherwise designate the project or projects in which they seek to reside. All such procedures shall comply with all provisions of title VI of the Civil Rights Act of 1964 [42 U.S.C. 2000d et seq.], the Fair Housing Act [42 U.S.C. 3601 et seq.], and other applicable civil rights laws. (2) Notice Any system described in paragraph (1) shall provide for the full disclosure by the public housing agency to each applicant of any op- tion available to the applicant in the selection of the project in which to reside. (s) Authority to require access to criminal records A public housing agency may require, as a condition of providing admission to the public housing program or assisted housing program under the jurisdiction of the public housing agency, that each adult member of the house- hold provide a signed, written authorization for the public housing agency to obtain records de- scribed in subsection (q)(1) regarding such mem- ber of the household from the National Crime Information Center, police departments, and other law enforcement agencies. (t) Obtaining information from drug abuse treat- ment facilities (1) Authority Notwithstanding any other provision of law other than the Public Health Service Act (42 Page 4569 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437d U.S.C. 201 et seq.), a public housing agency may require each person who applies for ad- mission to public housing to sign one or more forms of written consent authorizing the agen- cy to receive information from a drug abuse treatment facility that is solely related to whether the applicant is currently engaging in the illegal use of a controlled substance. (2) Confidentiality of applicant’s records (A) Limitation on information requested In a form of written consent, a public housing agency may request only whether the drug abuse treatment facility has rea- sonable cause to believe that the applicant is currently engaging in the illegal use of a controlled substance. (B) Records management Each public housing agency that receives information under this subsection from a drug abuse treatment facility shall establish and implement a system of records manage- ment that ensures that any information re- ceived by the public housing agency under this subsection— (i) is maintained confidentially in ac- cordance with section 543 of the Public Health Service Act [42 U.S.C. 290dd–2]; (ii) is not misused or improperly dissemi- nated; and (iii) is destroyed, as applicable— (I) not later than 5 business days after the date on which the public housing agency gives final approval for an appli- cation for admission; or (II) if the public housing agency denies the application for admission, in a time- ly manner after the date on which the statute of limitations for the commence- ment of a civil action from the applicant based upon that denial of admission has expired. (C) Expiration of written consent In addition to the requirements of sub- paragraph (B), an applicant’s signed written consent shall expire automatically after the public housing agency has made a final deci- sion to either approve or deny the appli- cant’s application for admittance to public housing. (3) Prohibition of discriminatory treatment of applicants (A) Forms signed A public housing agency may only require an applicant for admission to public housing to sign one or more forms of written consent under this subsection if the public housing agency requires all such applicants to sign the same form or forms of written consent. (B) Circumstances of inquiry A public housing agency may only make an inquiry to a drug abuse treatment facil- ity under this subsection if— (i) the public housing agency makes the same inquiry with respect to all appli- cants; or (ii) the public housing agency only makes the same inquiry with respect to each and every applicant with respect to whom— (I) the public housing agency receives information from the criminal record of the applicant that indicates evidence of a prior arrest or conviction; or (II) the public housing agency receives information from the records of prior tenancy of the applicant that dem- onstrates that the applicant— (aa) engaged in the destruction of property; (bb) engaged in violent activity against another person; or (cc) interfered with the right of peaceful enjoyment of the premises of another tenant. (4) Fee permitted A drug abuse treatment facility may charge a public housing agency a reasonable fee for information provided under this subsection. (5) Disclosure permitted by treatment facilities A drug abuse treatment facility shall not be liable for damages based on any information required to be disclosed pursuant to this sub- section if such disclosure is consistent with section 543 of the Public Health Service Act (42 U.S.C. 290dd–2). (6) Option to not request information A public housing agency shall not be liable for damages based on its decision not to re- quire each person who applies for admission to public housing to sign one or more forms of written consent authorizing the public hous- ing agency to receive information from a drug abuse treatment facility under this sub- section. (7) Definitions For purposes of this subsection, the fol- lowing definitions shall apply: (A) Drug abuse treatment facility The term ‘‘drug abuse treatment facility’’ means an entity that— (i) is— (I) an identified unit within a general medical care facility; or (II) an entity other than a general medical care facility; and (ii) holds itself out as providing, and pro- vides, diagnosis, treatment, or referral for treatment with respect to the illegal use of a controlled substance. (B) Controlled substance The term ‘‘controlled substance’’ has the meaning given the term in section 802 of title 21. (C) Currently engaging in the illegal use of a controlled substance The term ‘‘currently engaging in the ille- gal use of a controlled substance’’ means the illegal use of a controlled substance that oc- curred recently enough to justify a reason- able belief that an applicant’s illegal use of a controlled substance is current or that continuing illegal use of a controlled sub- stance by the applicant is a real and ongoing problem. Page 4570 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437d (8) Effective date This subsection shall take effect on October 21, 1998, and without the necessity of guidance from, or any regulation issued by, the Sec- retary. (Sept. 1, 1937, ch. 896, title I, § 6, as added Pub. L. 93–383, title II, § 201(a), Aug. 22, 1974, 88 Stat. 659; amended Pub. L. 96–153, title II, § 206(a), Dec. 21, 1979, 93 Stat. 1108; Pub. L. 96–399, title II, §§ 201(c), (e), 202(c), Oct. 8, 1980, 94 Stat. 1625, 1629; Pub. L. 97–35, title III, § 322(c), (d), Aug. 13, 1981, 95 Stat. 402; Pub. L. 98–181, title I [title II, §§ 201(c), 203(a), 204, 205, 214(b)], Nov. 30, 1983, 97 Stat. 1177–1179, 1185; Pub. L. 98–479, title I, § 102(b)(4), (5), title II, § 204(b)(1), Oct. 17, 1984, 98 Stat. 2221, 2233; Pub. L. 99–160, title I, § 101, Nov. 25, 1985, 99 Stat. 910; Pub. L. 100–242, title I, §§ 112(b)(2), 116, 170(d), Feb. 5, 1988, 101 Stat. 1824, 1826, 1867; renumbered title I, Pub. L. 100–358, § 5, June 29, 1988, 102 Stat. 681; Pub. L. 100–628, title X, §§ 1001(b), 1014(a)(1), Nov. 7, 1988, 102 Stat. 3263, 3269; Pub. L. 100–690, title V, § 5101, Nov. 18, 1988, 102 Stat. 4300; Pub. L. 101–144, title II, Nov. 9, 1989, 103 Stat. 846; Pub. L. 101–625, title V, §§ 501, 502(a), (c)(1), 503(a), (b), 504–506, 572, Nov. 28, 1990, 104 Stat. 4180, 4181, 4183–4185, 4236; Pub. L. 102–139, title II, Oct. 28, 1991, 105 Stat. 756, 757; Pub. L. 102–550, title I, §§ 112, 113, title VI, §§ 622(b), 625(a)(2), 682(a), Oct. 28, 1992, 106 Stat. 3689, 3817, 3820, 3830; Pub. L. 103–233, title I, § 101(c)(1), title III, § 303, Apr. 11, 1994, 108 Stat. 357, 370; Pub. L. 103–327, title II, Sept. 28, 1994, 108 Stat. 2315; Pub. L. 104–99, title IV, § 402(d)(1), (6)(A)(i), Jan. 26, 1996, 110 Stat. 41, 42; Pub. L. 104–120, § 9(a)–(c), Mar. 28, 1996, 110 Stat. 836, 837; Pub. L. 104–193, title IX, § 903(a)(1), Aug. 22, 1996, 110 Stat. 2348; Pub. L. 104–330, title V, § 501(b)(3), Oct. 26, 1996, 110 Stat. 4042; Pub. L. 105–276, title V, §§ 511(d), 512(b), 514(a)(1), (2)(A), 519(b), 520(b), 521, 525, 529, 530, 564, 565(a), 575, 576(d)(1), Oct. 21, 1998, 112 Stat. 2539, 2543, 2547, 2561, 2563, 2568, 2569, 2627, 2628, 2634, 2640; Pub. L. 109–162, title VI, § 607, Jan. 5, 2006, 119 Stat. 3048; Pub. L. 109–271, § 5(f), Aug. 12, 2006, 120 Stat. 761; Pub. L. 113–4, title VI, § 601(b)(1), Mar. 7, 2013, 127 Stat. 107.) Editorial Notes REFERENCES IN TEXT The Cranston-Gonzalez National Affordable Housing Act, referred to in subsec. (b)(3)(A), is Pub. L. 101–625, Nov. 28, 1990, 104 Stat. 4079. Title II of the Act, known as the ‘‘HOME Investments Partnership Act’’, is classi- fied principally to subchapter II (§ 12721 et seq.) of chap- ter 130 of this title. For complete classification of this Act to the Code, see Short Title note set out under sec- tion 12701 of this title and Tables. The Housing and Community Development Act of 1974, referred to in subsec. (b)(3)(B), is Pub. L. 93–383, Aug. 22, 1974, 88 Stat. 633. Title I of the Act is classified principally to chapter 69 (§ 5301 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 5301 of this title and Tables. The Housing and Community Development Act of 1992, referred to in subsec. (c)(4)(F), is Pub. L. 102–550, Oct. 28, 1992, 106 Stat. 3672. Subtitle C of title VI of the Act is classified generally to subchapter I (§ 13601 et seq.) of chapter 135 of this title. For complete classi- fication of this Act to the Code, see Short Title of 1992 Amendment note set out under section 5301 of this title and Tables. Section 1437l of this title, referred to in subsec. (j)(1)(I)(3), (2)(B)(ii), was repealed by Pub. L. 105–276, title V, § 522(a), Oct. 21, 1998, 112 Stat. 2564. Paragraph (5), referred to in the concluding provi- sions of subsec. (l), was redesignated as par. (6) by Pub. L. 105–276, title V, § 512(b)(1), Oct. 21, 1998, 112 Stat. 2543. The Civil Rights Act of 1964, referred to in subsec. (r)(1), is Pub. L. 88–352, July 2, 1964, 78 Stat. 241. Title VI of the Act is classified generally to subchapter V (§ 2000d et seq.) of chapter 21 of this title. For complete classification of this Act to the Code, see Short Title note set out under section 2000a of this title and Tables. The Fair Housing Act, referred to in subsec. (r)(1), is title VIII of Pub. L. 90–284, Apr. 11, 1968, 82 Stat. 81, which is classified principally to subchapter I (§ 3601 et seq.) of chapter 45 of this title. For complete classifica- tion of this Act to the Code, see Short Title note set out under section 3601 of this title and Tables. The Public Health Service Act, referred to in subsec. (t)(1), is act July 1, 1944, ch. 373, 58 Stat. 682, which is classified generally to chapter 6A (§ 201 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 201 of this title and Tables. PRIOR PROVISIONS A prior section 6 of act Sept. 1, 1937, ch. 896, 50 Stat. 890, as amended, enumerated financial provisions appli- cable to the Authority and was classified to section 1406 of this title, prior to the general revision of this chapter by Pub. L. 93–383. AMENDMENTS 2013—Subsec. (c)(3) to (5). Pub. L. 113–4, § 601(b)(1)(A), redesignated pars. (4) and (5) as (3) and (4), respectively, and struck out former par. (3) which read as follows: ‘‘the public housing agency shall not deny admission to the project to any applicant on the basis that the appli- cant is or has been a victim of domestic violence, dat- ing violence, or stalking if the applicant otherwise qualifies for assistance or admission, and that nothing in this section shall be construed to supersede any pro- vision of any Federal, State, or local law that provides greater protection than this section for victims of do- mestic violence, dating violence, or stalking’’. Subsec. (l)(5). Pub. L. 113–4, § 601(b)(1)(B)(i), struck out ‘‘, and that an incident or incidents of actual or threat- ened domestic violence, dating violence, or stalking will not be construed as a serious or repeated violation of the lease by the victim or threatened victim of that violence and will not be good cause for terminating the tenancy or occupancy rights of the victim of such vio- lence’’ before semicolon at end. Subsec. (l)(6). Pub. L. 113–4, § 601(b)(1)(B)(ii), struck out before semicolon at end ‘‘; except that: (A) crimi- nal activity directly relating to domestic violence, dat- ing violence, or stalking, engaged in by a member of a tenant’s household or any guest or other person under the tenant’s control, shall not be cause for termination of the tenancy or occupancy rights, if the tenant or im- mediate member of the tenant’s family is a victim of that domestic violence, dating violence, or stalking; (B) notwithstanding subparagraph (A) or any Federal, State, or local law to the contrary, a public housing agency may bifurcate a lease under this section, or re- move a household member from a lease under this sec- tion, without regard to whether a household member is a signatory to a lease, in order to evict, remove, termi- nate occupancy rights, or terminate assistance to any individual who is a tenant or lawful occupant and who engages in criminal acts of physical violence against family members or others, without evicting, removing, terminating assistance to, or otherwise penalizing the victim of such violence who is also a tenant or lawful occupant and such eviction, removal, termination of occupancy rights, or termination of assistance shall be effected in accordance with the procedures prescribed by Federal, State, and local law for the termination of leases or assistance under the relevant program of Page 4571 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437d HUD-assisted housing; (C) nothing in subparagraph (A) may be construed to limit the authority of a public housing agency, when notified, to honor court orders addressing rights of access to or control of the prop- erty, including civil protection orders issued to protect the victim and issued to address the distribution or possession of property among the household members in cases where a family breaks up; (D) nothing in sub- paragraph (A) limits any otherwise available authority of a public housing agency to evict a tenant for any violation of a lease not premised on the act or acts of violence in question against the tenant or a member of the tenant’s household, provided that the public hous- ing agency does not subject an individual who is or has been a victim of domestic violence, dating violence, or stalking to a more demanding standard than other ten- ants in determining whether to evict or terminate; (E) nothing in subparagraph (A) may be construed to limit the authority of a public housing agency to terminate the tenancy of any tenant if the public housing agency can demonstrate an actual and imminent threat to other tenants or those employed at or providing service to the property if that tenant’s tenancy is not termi- nated; and (F) nothing in this section shall be con- strued to supersede any provision of any Federal, State, or local law that provides greater protection than this section for victims of domestic violence, dat- ing violence, or stalking.’’ Subsec. (u). Pub. L. 113–4, § 601(b)(1)(C), struck out subsec. (u) which related to certification that an indi- vidual is a victim of domestic violence, dating violence, or stalking and confidentiality of information provided to any public housing agency. 2006—Subsec. (c)(3) to (5). Pub. L. 109–162, § 607(1), (2), added par. (3) and redesignated former pars. (3) and (4) as (4) and (5), respectively. Subsec. (l)(5). Pub. L. 109–162, § 607(3), inserted ‘‘, and that an incident or incidents of actual or threatened domestic violence, dating violence, or stalking will not be construed as a serious or repeated violation of the lease by the victim or threatened victim of that vio- lence and will not be good cause for terminating the tenancy or occupancy rights of the victim of such vio- lence’’ before semicolon at end. Subsec. (l)(6). Pub. L. 109–162, § 607(4), inserted before semicolon at end ‘‘; except that: (A) criminal activity directly relating to domestic violence, dating violence, or stalking, engaged in by a member of a tenant’s household or any guest or other person under the ten- ant’s control, shall not be cause for termination of the tenancy or occupancy rights, if the tenant or imme- diate member of the tenant’s family is a victim of that domestic violence, dating violence, or stalking; (B) not- withstanding subparagraph (A), a public housing agen- cy under this section may bifurcate a lease under this section, in order to evict, remove, or terminate assist- ance to any individual who is a tenant or lawful occu- pant and who engages in criminal acts of physical vio- lence against family members or others, without evict- ing, removing, terminating assistance to, or otherwise penalizing the victim of such violence who is also a tenant or lawful occupant; (C) nothing in subparagraph (A) may be construed to limit the authority of a public housing agency, when notified, to honor court orders addressing rights of access to or control of the prop- erty, including civil protection orders issued to protect the victim and issued to address the distribution or possession of property among the household members in cases where a family breaks up; (D) nothing in sub- paragraph (A) limits any otherwise available authority of a public housing agency to evict a tenant for any violation of a lease not premised on the act or acts of violence in question against the tenant or a member of the tenant’s household, provided that the public hous- ing agency does not subject an individual who is or has been a victim of domestic violence, dating violence, or stalking to a more demanding standard than other ten- ants in determining whether to evict or terminate; (E) nothing in subparagraph (A) may be construed to limit the authority of a public housing agency to terminate the tenancy of any tenant if the public housing agency can demonstrate an actual and imminent threat to other tenants or those employed at or providing service to the property if that tenant’s tenancy is not termi- nated; and (F) nothing in this section shall be con- strued to supersede any provision of any Federal, State, or local law that provides greater protection than this section for victims of domestic violence, dat- ing violence, or stalking.’’ Subsec. (l)(6)(B). Pub. L. 109–271, § 5(f)(1), added sub- par. (B) and struck out former subpar. (B) which read as follows: ‘‘notwithstanding subparagraph (A), a public housing agency under this section may bifurcate a lease under this section, in order to evict, remove, or terminate assistance to any individual who is a tenant or lawful occupant and who engages in criminal acts of physical violence against family members or others, without evicting, removing, terminating assistance to, or otherwise penalizing the victim of such violence who is also a tenant or lawful occupant;’’. Subsec. (u). Pub. L. 109–162, § 607(5), added subsec. (u). Subsec. (u)(1)(A). Pub. L. 109–271, § 5(f)(2)(A), sub- stituted ‘‘the individual receives a request for such cer- tification from the public housing agency’’ for ‘‘the public housing agency requests such certification’’. Subsec. (u)(1)(B). Pub. L. 109–271, § 5(f)(2)(B), sub- stituted ‘‘the individual has received a request in writ- ing for such certification from the public housing agen- cy’’ for ‘‘the public housing agency has requested such certification in writing’’. Subsec. (u)(3)(D)(ii). Pub. L. 109–271, § 5(f)(2)(C), sub- stituted ‘‘blood or marriage’’ for ‘‘blood and marriage’’. 1998—Subsec. (a). Pub. L. 105–276, § 511(d), in first sen- tence, inserted ‘‘, in a manner consistent with the pub- lic housing agency plan’’ before the period at end and struck out after first sentence ‘‘Any such contract may contain a condition requiring the maintenance of an open space or playground in connection with the hous- ing project involved if deemed necessary by the Sec- retary for the safety or health of children.’’ Subsec. (b)(3), (4). Pub. L. 105–276, § 520(b), added pars. (3) and (4). Subsec. (c)(4)(A). Pub. L. 105–276, § 514(a)(1), amended subpar. (A) generally. For former text of subpar. (A), see 1996 Amendment note below. Subsec. (c)(4)(E). Pub. L. 105–276, § 529(1), substituted ‘‘for each agency that receives assistance under this subchapter’’ for ‘‘except in the case of agencies not re- ceiving operating assistance under section 1437g of this title’’. Subsec. (e). Pub. L. 105–276, § 529(2), struck out subsec. (e) which read as follows: ‘‘Every contract for annual contributions shall provide that whenever in any year the receipts of a public housing agency in connection with a low-income housing project exceed its expendi- tures (including debt service, operation, maintenance, establishment of reserves, and other costs and charges), an amount equal to such excess shall be applied, or set aside for application, to purposes, which, in the deter- mination of the Secretary, will effect a reduction in the amount of subsequent annual contributions.’’ Subsec. (f). Pub. L. 105–276, § 530, added subsec. (f). Subsec. (j)(1)(B). Pub. L. 105–276, § 564(1)(A), added sub- par. (B) and struck out former subpar. (B) which read as follows: ‘‘The amount and percentage of funds obli- gated to the public housing agency under section 1437l of this title which remain unexpended after 3 years.’’ Subsec. (j)(1)(D). Pub. L. 105–276, § 564(1)(B), sub- stituted ‘‘utility’’ for ‘‘energy’’. Subsec. (j)(1)(E). Pub. L. 105–276, § 564(1)(C), which di- rected the transfer and insertion of subpar. (E) after subpar. (D), required no change in text. Subsec. (j)(1)(H) to (K). Pub. L. 105–276, § 564(1)(D), (E), added subpars. (H), (I), relating to extent to which agency implements and coordinates strategies, and (J), and redesignated former subpar. (H) as (K). Subsec. (j)(2)(A)(i). Pub. L. 105–276, § 564(2)(A), inserted after first sentence ‘‘Such procedures shall provide that an agency that fails on a widespread basis to provide acceptable basic housing conditions for its residents Page 4572 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437d shall be designated as a troubled public housing agen- cy. The Secretary may use a simplified set of indica- tors for public housing agencies with less than 250 pub- lic housing units.’’ and, in last sentence, substituted ‘‘for assistance from the Capital Fund under section 1437g(d) of this title’’ for ‘‘under section 1437l of this title’’. Subsec. (j)(2)(A)(iii). Pub. L. 105–276, § 564(2)(B), sub- stituted ‘‘for assistance from the Capital Fund under section 1437g(d) of this title’’ for ‘‘under section 1437l of this title’’. Subsec. (j)(2)(B)(i). Pub. L. 105–276, § 564(2)(C), inserted ‘‘with more than 250 units’’ after ‘‘public housing agen- cy’’ and substituted ‘‘comparable and recent review’’ for ‘‘review conducted under section 1437l(p) of this title’’. Subsec. (j)(2)(C). Pub. L. 105–276, § 564(2)(D), inserted ‘‘(if applicable)’’ after ‘‘subparagraph (B)’’ in first sen- tence. Subsec. (j)(3)(A)(i). Pub. L. 105–276, § 565(a)(1)(A), added cl. (i) and struck out former cl. (i) which read as follows: ‘‘solicit competitive proposals from other pub- lic housing agencies and private housing management agents (which may be selected by existing tenants through administrative procedures established by the Secretary) in the eventuality that these agents may be needed for managing all, or part, of the housing admin- istered by a public housing agency;’’. Subsec. (j)(3)(A)(iii). Pub. L. 105–276, § 565(a)(1)(B), substituted ‘‘from the Capital Fund under section 1437g(d) of this title’’ for ‘‘under section 1437l of this title’’. Subsec. (j)(3)(A)(iv), (v). Pub. L. 105–276, § 565(a)(1)(C), added cls. (iv) and (v) and struck out former cl. (iv) which read as follows: ‘‘require the agency to make other arrangements acceptable to the Secretary and in the best interests of the public housing residents for managing all, or part of, such housing.’’ Subsec. (j)(3)(B) to (H). Pub. L. 105–276, § 565(a)(2), added subpars. (B) to (H) and struck out former sub- pars. (B) to (D) which read as follows: ‘‘(B) The Secretary may make available to receivers and other entities selected or appointed pursuant to this paragraph such assistance as is necessary to rem- edy the substantial deterioration of living conditions in individual public housing developments or other re- lated emergencies that endanger the health, safety and welfare of the residents. ‘‘(C) In any proceeding under subparagraph (A)(ii), upon a determination that a substantial default has oc- curred, and without regard to the availability of alter- native remedies, the court shall appoint a receiver to conduct the affairs of the public housing agency in a manner consistent with this chapter and in accordance with such further terms and conditions as the court may provide. The court shall have power to grant ap- propriate temporary or preliminary relief pending final disposition of the petition by the Secretary. ‘‘(D) The appointment of a receiver pursuant to this subsection may be terminated, upon the petition of any party, when the court determines that all defaults have been cured and the housing operated by the public housing agency will thereafter be operated in accord- ance with the covenants and conditions to which the public housing agency is subject.’’ Subsec. (j)(4), (5). Pub. L. 105–276, § 521, added par. (4) and redesignated former par. (4) as (5). Subsec. (j)(5)(F). Pub. L. 105–276, § 564(3), substituted ‘‘program for assistance from the Capital Fund under section 1437g(d) of this title and specifies the amount of assistance the agency received under such program.’’ for ‘‘program under section 1437l of this title and speci- fies the amount of assistance the agency received under section 1437l of this title and any credits accumulated by the agency under section 1437l(k)(5)(D) of this title.’’ Subsec. (j)(6), (7). Pub. L. 105–276, § 564(4), added pars. (6) and (7). Subsec. (k). Pub. L. 105–276, § 575(a), in first sentence of concluding provisions, inserted ‘‘violent or’’ before ‘‘drug-related’’ and ‘‘or any activity resulting in a fel- ony conviction,’’ after ‘‘on or off such premises,’’. Subsec. (l)(1) to (3). Pub. L. 105–276, § 512(b)(1), (3), added par. (1) and redesignated former pars. (1) to (3) as (2) to (4), respectively. Subsec. (l)(4). Pub. L. 105–276, § 512(b)(1), redesignated par. (3) as (4). Former par. (4) redesignated (5). Subsec. (l)(4)(A). Pub. L. 105–276, § 575(b)(1)(A), added subpar. (A) and struck out former subpar. (A) which read as follows: ‘‘a reasonable time, but not to exceed 30 days, when the health or safety of other tenants or public housing agency employees is threatened;’’. Subsec. (l)(4)(C). Pub. L. 105–276, § 575(b)(1)(B), inserted ‘‘, except that if a State or local law provides for a shorter period of time, such shorter period shall apply’’ before semicolon at end. Subsec. (l)(5), (6). Pub. L. 105–276, § 512(b)(1), redesig- nated pars. (4) and (5) as (5) and (6), respectively. Former par. (6) redesignated (7), relating to specifica- tion that tenant be informed of opportunity to examine documents. Subsec. (l)(7). Pub. L. 105–276, § 575(b)(4), added par. (7) relating to termination for illegal drug use and alcohol abuse. Pub. L. 105–276, § 575(b)(2), struck out ‘‘and’’ at end. Pub. L. 105–276, § 512(b)(2), which directed the redesig- nation of par. (7) as (9), was executed by redesignating the par. (7), relating to termination of tenancy if ten- ant is fleeing prosecution or in violation of parole, as (9), to reflect the probable intent of Congress. Pub. L. 105–276, § 512(b)(1), redesignated par. (6) as (7), relating to specification that tenant be informed of op- portunity to examine documents. Subsec. (l)(9). Pub. L. 105–276, § 512(b)(2), which di- rected the redesignation of par. (7) as (9), was executed by redesignating the par. (7), relating to termination of tenancy if tenant is fleeing prosecution or in violation of parole, as (9), to reflect the probable intent of Con- gress. Subsec. (o). Pub. L. 105–276, § 514(a)(2)(A), substituted ‘‘In’’ for ‘‘Subject’’ and all that follows through ‘‘, in’’ in introductory provisions. Subsec. (p). Pub. L. 105–276, § 519(b), struck out subsec. (p) which read as follows: ‘‘With respect to amounts available for obligation on or after October 1, 1991, the criteria established under section 1439(d)(5)(B) of this title for any competition for assistance for new con- struction, acquisition, or acquisition and rehabilitation of public housing shall give preference to applications for housing to be located in a local market area that has an inadequate supply of housing available for use by very low-income families. The Secretary shall estab- lish criteria for determining that the housing supply of a local market area is inadequate, which shall re- quire— ‘‘(1)(A) information regarding housing market con- ditions showing that the supply of rental housing af- fordable by very low-income families is inadequate, taking into account vacancy rates in such housing and other market indicators; and ‘‘(B) evidence that significant numbers of families in the local market area holding certificates and vouchers under section 1437f of this title are experi- encing significant difficulty in leasing housing meet- ing program and family-size requirements; or ‘‘(2) evidence that the proposed development would provide increased housing opportunities for minori- ties or address special housing needs.’’ Subsec. (q)(1)(A). Pub. L. 105–276, § 575(c)(1)(A)(ii), which directed the substitution of ‘‘covered housing as- sistance’’ for ‘‘public housing’’, was executed by mak- ing the substitution in the second place that ‘‘public housing’’ appeared, to reflect the probable intent of Congress. Pub. L. 105–276, § 575(c)(1)(A)(i), substituted ‘‘subpara- graph (C)’’ for ‘‘subparagraph (B)’’. Subsec. (q)(1)(B), (C). Pub. L. 105–276, § 575(c)(1)(B), (C), added subpar. (B) and redesignated former subpar. (B) as (C). Subsec. (q)(3). Pub. L. 105–276, § 575(c)(2), substituted ‘‘Fees’’ for ‘‘Fee’’ in heading and inserted at end ‘‘In the case of a public housing agency obtaining informa- Page 4573 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437d tion pursuant to paragraph (1)(B) for another owner of housing, the agency may pass such fee on to the owner initiating the request and may charge additional rea- sonable fees for making the request on behalf of the owner and taking other actions for owners under this subsection.’’ Subsec. (q)(5) to (8). Pub. L. 105–276, § 575(c)(3), (4), added pars. (5) to (8) and struck out heading and text of former par. (5). Text read as follows: ‘‘For purposes of this subsection, the term ‘adult’ means a person who is 18 years of age or older, or who has been convicted of a crime as an adult under any Federal, State, or tribal law.’’ Subsec. (r). Pub. L. 105–276, § 576(d)(1), redesignated subsec. (s) as (r) and struck out heading and text of former subsec. (r). Text read as follows: ‘‘Any tenant evicted from housing assisted under this subchapter by reason of drug-related criminal activity (as that term is defined in section 1437f(f) of this title) shall not be el- igible for housing assistance under this subchapter dur- ing the 3-year period beginning on the date of such eviction, unless the evicted tenant successfully com- pletes a rehabilitation program approved by the public housing agency (which shall include a waiver of this subsection if the circumstances leading to eviction no longer exist).’’ Subsec. (s). Pub. L. 105–276, § 576(d)(1)(B), redesignated subsec. (t) as (s). Former subsec. (s) redesignated (r). Pub. L. 105–276, § 525, added subsec. (s). Subsec. (t). Pub. L. 105–276, § 576(d)(1)(B), redesignated subsec. (u) as (t). Former subsec. (t) redesignated (s). Pub. L. 105–276, § 575(d), added subsec. (t). Subsec. (u). Pub. L. 105–276, § 576(d)(1)(B), redesignated subsec. (u) as (t). Pub. L. 105–276, § 575(e), added subsec. (u). 1996—Subsec. (b)(1). Pub. L. 104–330 struck out ‘‘and public housing for Indians and Alaska Natives in ac- cordance with the Indian Housing Act of 1988’’ after ‘‘operation of public housing’’. Subsec. (c)(4)(A). Pub. L. 104–99, § 402(d)(1), (f), tempo- rarily amended subpar. (A) generally, substituting ‘‘(A) the establishment, after public notice and an op- portunity for public comment, of a written system of preferences for admission to public housing, if any, that is not inconsistent with the comprehensive hous- ing affordability strategy under title I of the Cranston- Gonzalez National Affordable Housing Act;’’ for ‘‘(A) except for projects or portions of projects des- ignated for occupancy pursuant to section 1437e(a) of this title with respect to which the Secretary has de- termined that application of this subparagraph would result in excessive delays in meeting the housing need of such families, the establishment of tenant selection criteria which— ‘‘(i) for not less than 50 percent of the units that are made available for occupancy in a given fiscal year, give preference to families that occupy substandard housing (including families that are homeless or liv- ing in a shelter for homeless families), are paying more than 50 percent of family income for rent, or are involuntarily displaced (including displacement be- cause of disposition of a multifamily housing project under section 1701z–11 of title 12) at the time they are seeking assistance under this chapter; ‘‘(ii) for any remaining units to be made available for occupancy, give preference in accordance with a system of preferences established by the public hous- ing agency in writing and after public hearing to re- spond to local housing needs and priorities, which may include (I) assisting very low-income families who either reside in transitional housing assisted under title IV of the Stewart B. McKinney Homeless Assistance Act, or participate in a program designed to provide public assistance recipients with greater access to employment and educational opportunities; (II) assisting families in accordance with subsection (u)(2); (III) assisting families identified by local pub- lic agencies involved in providing for the welfare of children as having a lack of adequate housing that is a primary factor in the imminent placement of a child in foster care, or in preventing the discharge of a child from foster care and reunification with his or her family; (IV) assisting youth, upon discharge from foster care, in cases in which return to the family or extended family or adoption is not available; (V) as- sisting families that include one or more adult mem- bers who are employed; and (VI) achieving other ob- jectives of national housing policy as affirmed by Congress; subclause (V) shall be effective only during fiscal year 1995; ‘‘(iii) prohibit any individual or family evicted from housing assisted under the chapter by reason of drug- related criminal activity from having a preference under any provision of this subparagraph for 3 years unless the evicted tenant successfully completes a re- habilitation program approved by the agency, except that the agency may waive the application of this clause under standards established by the Secretary (which shall include waiver for any member of a fam- ily of an individual prohibited from tenancy under this clause who the agency determines clearly did not participate in and had no knowledge of such criminal activity or when circumstances leading to eviction no longer exist); and ‘‘(iv) are designed to ensure that, to the maximum extent feasible, the projects of an agency will include families with a broad range of incomes and will avoid concentrations of low-income and deprived families with serious social problems.’’ See Effective and Termination Dates of 1996 Amend- ments note below. Subsec. (k). Pub. L. 104–120, § 9(a)(1), in concluding provisions, substituted ‘‘involves any activity’’ for ‘‘in- volves any criminal activity’’ and ‘‘on or off such prem- ises’’ for ‘‘on or near such premises’’. Subsec. (l)(5). Pub. L. 104–120, § 9(a)(2), substituted ‘‘on or off such premises’’ for ‘‘on or near such premises’’. Subsec. (l)(7). Pub. L. 104–193 added par. (7). Subsec. (o). Pub. L. 104–99, § 402(d)(6)(A)(i), (f), in in- troductory provisions, temporarily substituted ‘‘writ- ten system of preferences for selection established pur- suant to’’ for ‘‘preference rules specified in’’. See Effec- tive and Termination Dates of 1996 Amendments note below. Subsec. (q). Pub. L. 104–120, § 9(b), added subsec. (q). Subsec. (r). Pub. L. 104–120, § 9(c), added subsec. (r). 1994—Subsec. (c)(4)(A)(i). Pub. L. 103–233, § 101(c)(1), inserted ‘‘(including displacement because of disposi- tion of a multifamily housing project under section 1701z–11 of title 12)’’ after ‘‘displaced’’. Subsec. (c)(4)(A)(ii). Pub. L. 103–327 added subcl. (V), redesignated former subcl. (V) as (VI), and inserted ‘‘subclause (V) shall be effective only during fiscal year 1995;’’ after semicolon at end. Subsec. (c)(4)(E). Pub. L. 103–233, § 303, substituted ‘‘500 units’’ for ‘‘250 units’’. 1992—Subsec. (a). Pub. L. 102–550, § 625(a)(2), sub- stituted ‘‘elderly or disabled families’’ for ‘‘the elderly’’ in last sentence. Subsec. (c)(4)(A). Pub. L. 102–550, § 622(b), substituted ‘‘designated for occupancy pursuant to section 1437e(a) of this title’’ for ‘‘specifically designated for elderly families’’ in introductory provisions. Subsec. (c)(4)(A)(i). Pub. L. 102–550, § 112, substituted ‘‘50 percent’’ for ‘‘70 percent’’ after ‘‘not less than’’. Subsec. (c)(4)(F). Pub. L. 102–550, § 682(a), added sub- par. (F). Subsec. (j)(1). Pub. L. 102–550, § 113(e)(1)(C), which di- rected the substitution of ‘‘indicators for public hous- ing agencies, to the extent practicable:’’ for ‘‘indica- tors.’’ in fourth sentence, was executed by making the substitution for ‘‘indicators:’’ to reflect the probable intent of Congress. Pub. L. 102–550, § 113(e)(1)(A), (B), in introductory pro- visions, inserted ‘‘and resident management corpora- tions’’ before period in first sentence and after ‘‘agen- cies’’ in third sentence. Subsec. (j)(2)(B). Pub. L. 102–550, § 113(a)(2), added sub- par. (B). Former subpar. (B) redesignated (C). Subsec. (j)(2)(C). Pub. L. 102–550, § 113(a)(1), (3), redes- ignated subpar. (B) as (C), substituted ‘‘agency, after Page 4574 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437d reviewing the report submitted pursuant to subpara- graph (B) and consulting with the agency’s assessment team. Such agreement shall set forth’’ for ‘‘agency set- ting forth’’ in introductory provisions, and inserted ‘‘To the extent the Secretary deems appropriate (tak- ing into account an agency’s performance under the in- dicators specified under paragraph (1)), such agreement shall also set forth a plan for enhancing resident in- volvement in the management of the public housing agency.’’ before ‘‘The Secretary and the public’’ in con- cluding provisions. Subsec. (j)(2)(D). Pub. L. 102–550, § 113(e)(2), added sub- par. (D). Subsec. (j)(3)(A). Pub. L. 102–550, § 113(b)(5), inserted concluding provisions. Subsec. (j)(3)(A)(i). Pub. L. 102–550, § 113(b)(1), inserted ‘‘(which may be selected by existing tenants through administrative procedures established by the Sec- retary)’’ after ‘‘management agents’’. Subsec. (j)(3)(A)(iii), (iv). Pub. L. 102–550, § 113(b)(2)–(4), added cl. (iii) and redesignated former cl. (iii) as (iv). Subsec. (j)(3)(B) to (D). Pub. L. 102–550, § 113(c), added subpar. (B) and redesignated former subpars. (B) and (C) as (C) and (D), respectively. Subsec. (j)(4)(E). Pub. L. 102–550, § 113(d), which di- rected the insertion of ‘‘, including an accounting of the authorized funds that have been expended to sup- port such actions’’ before semicolon in par. (5)(E) of subsec. (j), was executed by making the insertion in par. (4)(E) to reflect the probable intent of Congress, because subsec. (j) does not contain a par. (5). 1991—Subsec. (j)(1)(H), (I). Pub. L. 102–139, which di- rected amendment of ‘‘Section 6(j)(1) of the Housing Act of 1937, 42 U.S.C. 1437d(j)(1) section 502(a) of the Na- tional Affordable Housing Act,’’ by adding ‘‘which shall not exceed the seven factors in the statute, plus an ad- ditional five’’ at the end of subpar. (H) and by adding subpar. (I), requiring Secretary to administer evalua- tion system, reflect in weights assigned indicators, and determine status, was executed to subsec. (j)(1) of this section, which is section 6 of the United States Housing Act of 1937, to reflect the probable intent of Congress. Subsec. (p). Pub. L. 102–139 added subsec. (p). 1990—Subsec. (c)(4)(A). Pub. L. 101–625, § 501, amended subpar. (A) generally. Prior to amendment, subpar. (A) read as follows: ‘‘except for projects or portions of projects specifically designated for elderly families with respect to which the Secretary has determined that application of this clause would result in excessive delays in meeting the housing needs of such families, the establishment of tenant selection criteria which gives preference to families which occupy substandard housing, are paying more than 50 percent of family in- come for rent, or are involuntarily displaced at the time they are seeking assistance under this chapter and which is designed to assure that, within a reason- able period of time, the project will include families with a broad range of incomes and will avoid con- centrations of lower income and deprived families with serious social problems, but (i) this shall not permit maintenance of vacancies to await higher income ten- ants where lower income tenants are available and shall not permit public housing agencies to select fami- lies for residence in an order different from the order on the waiting list for the purpose of selecting rel- atively higher income families for residence; and (ii) the public housing agency may provide for cir- cumstances in which families who do not qualify for any preference established in this subparagraph are provided assistance before families who do qualify for such preference, except that not more than 10 percent of the families who initially receive assistance in any 1-year period (or such shorter period selected by the public housing agency before the beginning of its first full year subject to this clause) may be families who do not qualify for such preference;’’. Subsec. (c)(4)(D). Pub. L. 101–625, § 572(1), substituted ‘‘low-income families’’ for ‘‘lower income families’’. Subsec. (c)(4)(E). Pub. L. 101–625, § 502(c)(1), added sub- par. (E). Subsecs. (d), (e). Pub. L. 101–625, § 572(2), substituted ‘‘low-income housing’’ for ‘‘lower income housing’’ wherever appearing. Subsec. (j). Pub. L. 101–625, § 502(a), amended subsec. (j) generally. Prior to amendment, subsec. (j) read as follows: ‘‘On or after October 1, 1983, in entering into commitments for the development of public housing, the Secretary shall give a priority to projects for the construction, acquisition, or acquisition and rehabili- tation of housing suitable for occupancy by families re- quiring three or more bedrooms.’’ Subsec. (k). Pub. L. 101–625, § 503(a), added concluding provisions and struck out former concluding provisions which read as follows: ‘‘An agency may exclude from its procedure any grievance concerning an eviction or termination of tenancy in any jurisdiction which re- quires that, prior to eviction, a tenant be given a hear- ing in court which the Secretary determines provides the basic elements of due process.’’ Subsec. (l)(5). Pub. L. 101–625, § 504, amended par. (5) generally. Prior to amendment, par. (5) read as follows: ‘‘provide that a public housing tenant, any member of the tenant’s household, or a guest or other person under the tenant’s control shall not engage in criminal activity, including drug-related criminal activity, on or near public housing premises, while the tenant is a tenant in public housing, and such criminal activity shall be cause for termination of tenancy.’’ Subsec. (l)(6). Pub. L. 101–625, § 503(b), added par. (6). Subsecs. (n), (o). Pub. L. 101–625, §§ 505, 506, added sub- secs. (n) and (o). 1989—Subsec. (b). Pub. L. 101–144 added subsec. (b). 1988—Subsec. (a). Pub. L. 100–242, § 170(d)(1), sub- stituted ‘‘The Secretary’’ for ‘‘Secretary’’ at beginning. Pub. L. 100–242, § 112(b)(2), struck out ‘‘annual’’ before ‘‘contributions’’. Subsec. (c). Pub. L. 100–242, § 112(b)(2), struck out ‘‘an- nual’’ before ‘‘contributions’’ in introductory provi- sions. Subsec. (c)(4)(A). Pub. L. 100–628, § 1014(a)(1), inserted cl. (i) designation after ‘‘, but’’ and added cl. (ii) before semicolon at end. Pub. L. 100–628, § 1001(b), inserted before semicolon at end ‘‘and shall not permit public housing agencies to select families for residence in an order different from the order on the waiting list for the purpose of select- ing relatively higher income families for residence’’. Pub. L. 100–242, § 170(d)(2), inserted ‘‘, are paying more than 50 percent of family income for rent,’’ after ‘‘sub- standard housing’’, and struck out ‘‘or are paying more than 50 per centum of family income for rent’’ after ‘‘under this chapter’’. Subsec. (d). Pub. L. 100–242, § 112(b)(2), struck out ‘‘an- nual’’ before ‘‘contributions’’ in four places and before ‘‘shelter’’ in two places. Subsec. (g). Pub. L. 100–242, § 112(b)(2), struck out ‘‘an- nual’’ before ‘‘contributions’’ in introductory provi- sions. Subsec. (h). Pub. L. 100–242, § 116, inserted ‘‘in the neighborhood where the public housing agency deter- mines the housing is needed’’ after ‘‘is’’ and ‘‘in such neighborhood’’ after ‘‘rehabilitation’’. Subsec. (k)(4), (5). Pub. L. 100–242, § 170(d)(3), sub- stituted ‘‘their’’ for ‘‘his’’. Subsec. (l). Pub. L. 100–690 added par. (5) and con- cluding provisions defining term ‘‘drug-related crimi- nal activity’’ for purposes of par. (5). 1985—Subsec. (b). Pub. L. 99–160 struck out subsec. (b) which related to cost of construction and equipment of a project, and prototype costs. 1984—Subsec. (a). Pub. L. 98–479, § 204(b)(1), sub- stituted ‘‘covenants’’ for ‘‘convenants’’. Subsec. (j). Pub. L. 98–479, § 102(b)(4), inserted ‘‘, acquisition, or acquisition and rehabilitation’’ and substituted ‘‘families requiring three or more bed- rooms’’ for ‘‘large families’’. Subsec. (m). Pub. L. 98–479, § 102(b)(5), substituted ‘‘housing’’ for ‘‘hearing’’. 1983—Subsec. (c)(4)(A). Pub. L. 98–181, § 203(a), inserted ‘‘or are paying more than 50 per centum of family in- come for rent’’. Page 4575 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437d Subsec. (f). Pub. L. 98–181, § 214(b), repealed subsec. (f) which provided for modification or closeout of housing project. Subsecs. (h) to (j). Pub. L. 98–181, § 201(c), added sub- secs. (h) to (j). Subsecs. (k), (l). Pub. L. 98–181, § 204, added subsecs. (k) and (l). Subsec. (m). Pub. L. 98–181, § 205, added subsec. (m). 1981—Subsec. (a). Pub. L. 97–35, § 322(c), substituted reference to lower income for reference to low-income. Subsec. (c). Pub. L. 97–35, § 322(c), (d), substituted pro- vision in par. (2) requiring review at least annually for provision requiring review at least within two year in- tervals, or shorter where deemed desirable, in par. (4)(A) ‘‘lower income and’’ for ‘‘low-income and’’, and in par. (4)(D) reference to lower income for reference to low-income. Subsecs. (d), (e). Pub. L. 97–35, § 322(c), substituted ref- erences to lower income for references to low-income wherever appearing. 1980—Subsec. (b). Pub. L. 96–399, § 201(c), inserted ex- ception relating to availability of prototype costs for projects to be located on Indian reservations or in Alas- kan Native villages, and added cl. (8). Subsec. (c)(4)(A). Pub. L. 96–399, § 201(e), inserted ex- ception relating to application of this clause to projects specifically designated for elderly families. Subsec. (f). Pub. L. 96–399, § 202(c), inserted ‘‘pursuant to section 1437l of this title’’ wherever appearing. 1979—Subsec. (c)(4)(A). Pub. L. 96–153 substituted ‘‘tenant selection criteria which gives preference to families which occupy substandard housing or are in- voluntarily displaced at the time they are seeking as- sistance under this chapter and which is designed’’ for ‘‘tenant selection criteria designed’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1998 AMENDMENT Amendment by title V of Pub. L. 105–276 effective and applicable beginning upon Oct. 1, 1999, except as other- wise provided, with provision that Secretary may im- plement amendment before such date, except to extent that such amendment provides otherwise, and with sav- ings provision, see section 503 of Pub. L. 105–276, set out as a note under section 1437 of this title. Amendment by section 511 of Pub. L. 105–276 effective and applicable beginning upon Oct. 21, 1998, see section 511(e) of Pub. L. 105–276, set out as a note under section 1437c–1 of this title. Amendment by section 514(a)(1), (2)(A) of Pub. L. 105–276 effective and applicable beginning upon Oct. 21, 1998, see section 514(g) of Pub. L. 105–276, set out as a note under section 1701s of Title 12, Banks and Bank- ing. Pub. L. 105–276, title V, § 565(b), Oct. 21, 1998, 112 Stat. 2631, provided that: ‘‘The provisions of, and duties and authorities conferred or confirmed by, the amendments made by subsection (a) [amending this section] shall apply with respect to any action taken before, on, or after the effective date of this Act [probably means the general effective date for title V of Pub. L. 105–276 in- cluded in section 503 of Pub. L. 105–276, set out as an Ef- fective Date of 1998 Amendment note under section 1437 of this title] and shall apply to any receiver appointed for a public housing agency before the date of the en- actment of this Act [Oct. 21, 1998].’’ Pub. L. 105–276, title V, § 565(e), Oct. 21, 1998, 112 Stat. 2632, provided that: ‘‘This section [amending this sec- tion and section 1437f of this title and enacting provi- sions set out as notes under this section] shall take ef- fect on, and the amendments made by this section are made on, and shall apply beginning upon, the date of the enactment of this Act [Oct. 21, 1998].’’ EFFECTIVE AND TERMINATION DATES OF 1996 AMENDMENTS Amendment by Pub. L. 104–330 effective Oct. 1, 1997, except as otherwise expressly provided, see section 107 of Pub. L. 104–330, set out as an Effective Date note under section 4101 of Title 25, Indians. Pub. L. 104–120, § 13, Mar. 28, 1996, 110 Stat. 845, pro- vided that: ‘‘(a) APPLICABILITY.—This Act [enacting section 1490p–2 of this title, amending this section, sections 1437e, 1437n, 1479, 1485, 1490p–2, and 5308 of this title, and sections 1715z–20, 1715z–22, and 1721 of Title 12, Banks and Banking, and enacting provisions set out as notes under sections 1437f, 5305, and 12805 of this title and sec- tions 1701 and 4101 of Title 12] and the amendments made by this Act shall be construed to have become ef- fective on October 1, 1995. ‘‘(b) IMPLEMENTATION.—The amendments made by sections 9 and 10 [amending this section and sections 1437e and 1437n of this title] shall apply as provided in subsection (a) of this section, notwithstanding the ef- fective date of any regulations issued by the Secretary of Housing and Urban Development to implement such amendments or any failure by the Secretary to issue any such regulations.’’ Amendment by Pub. L. 104–99 effective Jan. 26, 1996, only for fiscal years 1996, 1997, and 1998, and to cease to be effective Oct. 21, 1998, see section 402(f) of Pub. L. 104–99, as amended, and section 514(f) of Pub. L. 105–276, set out as notes under section 1437a of this title. EFFECTIVE DATE OF 1992 AMENDMENT Amendment by subtitles B through F of title VI [§§ 621–685] of Pub. L. 102–550 applicable upon expiration of 6-month period beginning Oct. 28, 1992, except as oth- erwise provided, see section 13642 of this title. EFFECTIVE DATE OF 1981 AMENDMENT Amendment by Pub. L. 97–35 effective Oct. 1, 1981, see section 371 of Pub. L. 97–35, set out as an Effective Date note under section 3701 of Title 12, Banks and Banking. IMPLEMENTATION Pub. L. 105–276, title V, § 565(d), Oct. 21, 1998, 112 Stat. 2632, provided that: ‘‘The Secretary may administer the amendments made by subsection (a) [amending this section] as necessary to ensure the efficient and effec- tive initial implementation of this section [amending this section and section 1437f of this title and enacting provisions set out as notes under this section].’’ Pub. L. 101–625, title V, § 502(c)(2), Nov. 28, 1990, 104 Stat. 4184, as amended by Pub. L. 102–550, title I, § 130, Oct. 28, 1992, 106 Stat. 3712, provided that: ‘‘The Sec- retary of Housing and Urban Development shall, under the rulemaking procedures under section 553 of title 5, United States Code, establish guidelines and timetables appropriate to implement the amendment made by paragraph (1)(C) [amending this section], taking into account the requirements of public housing agencies of different sizes and characteristics, to achieve compli- ance with requirements established by such amend- ment not later than January 1, 1993 for public housing agencies with 500 or more units and not later than Jan- uary 1, 1994 for public housing agencies with less than 500 units.’’ REGULATIONS For provisions requiring Secretary of Housing and Urban Development to issue regulations necessary to implement amendment to this section by section 101(c) of Pub. L. 103–233, see section 101(f) of Pub. L. 103–233, set out as a note under section 1701z–11 of Title 12, Banks and Banking. Pub. L. 102–550, title I, § 104, Oct. 28, 1992, 106 Stat. 3684, provided that: ‘‘Not later than the expiration of the 180-day period beginning on the date of the enact- ment of this Act [Oct. 28, 1992], the Secretary of Hous- ing and Urban Development shall issue regulations im- plementing the amendments made by sections 501 and 545 of the Cranston-Gonzalez National Affordable Hous- ing Act [Pub. L. 101–625, amending this section and sec- tion 1437f of this title]. The regulations shall be issued after notice and opportunity for public comment pursu- Page 4576 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437d ant to the provisions of section 553 of title 5, United States Code (notwithstanding subsections (a)(2), (b)(B), and (d)(3) of such section) and shall take effect upon issuance.’’ Pub. L. 101–625, title V, § 503(c), Nov. 28, 1990, 104 Stat. 4185, provided that: ‘‘The Secretary of Housing and Urban Development shall issue, and publish in the Fed- eral Register for comment, proposed rules imple- menting the amendments made by this section [amend- ing this section] not later than the expiration of the 60- day period beginning on the date of the enactment of this Act [Nov. 28, 1990] and shall issue final rules imple- menting the amendments not later than the expiration of the 180-day period beginning on the date of the en- actment of this Act.’’ CONSTRUCTION Pub. L. 113–4, title VI, § 601(b)(3), Mar. 7, 2013, 127 Stat. 108, provided that: ‘‘Nothing in this Act [see Tables for classification], or the amendments made by this Act, shall be construed— ‘‘(A) to limit the rights or remedies available to any person under section 6 or 8 of the United States Housing Act of 1937 (42 U.S.C. 1437d and 1437f), as in effect on the day before the date of enactment of this Act [Mar. 7, 2013]; ‘‘(B) to limit any right, remedy, or procedure other- wise available under any provision of part 5, 91, 880, 882, 883, 884, 886, 891, 903, 960, 966, 982, or 983 of title 24, Code of Federal Regulations, that— ‘‘(i) was issued under the Violence Against Women and Department of Justice Reauthorization Act of 2005 (Public Law 109–162; 119 Stat. 2960) [see Tables for classification] or an amendment made by that Act; and ‘‘(ii) provides greater protection for victims of do- mestic violence, dating violence, sexual assault, and stalking than this Act; or ‘‘(C) to disqualify an owner, manager, or other indi- vidual from participating in or receiving the benefits of the low income housing tax credit program under section 42 of the Internal Revenue Code of 1986 [26 U.S.C. 42] because of noncompliance with the provi- sions of this Act.’’ SHARED WAITING LISTS Pub. L. 115–174, title II, § 209(e), May 24, 2018, 132 Stat. 1316, provided that: ‘‘Not later than 1 year after the date of enactment of this Act [May 24, 2018], the Sec- retary of Housing and Urban Development shall make available to interested public housing agencies and owners of multifamily properties receiving assistance from the Department of Housing and Urban Develop- ment 1 or more software programs that will facilitate the voluntary use of a shared waiting list by multiple public housing agencies or owners receiving assistance, and shall publish on the website of the Department of Housing and Urban Development procedural guidance for implementing shared waiting lists that includes in- formation on how to obtain the software.’’ STUDY OF ALTERNATIVE METHODS FOR EVALUATING PUBLIC HOUSING AGENCIES Pub. L. 105–276, title V, § 563, Oct. 21, 1998, 112 Stat. 2624, provided that: ‘‘(a) IN GENERAL.—The Secretary of Housing and Urban Development shall provide under subsection (e) for a study to be conducted to determine the effective- ness of various alternative methods of evaluating the performance of public housing agencies and other pro- viders of federally assisted housing. ‘‘(b) PURPOSES.—The purposes of the study under this section shall be— ‘‘(1) to identify and examine various methods of evaluating and improving the performance of public housing agencies in administering public housing and tenant-based rental assistance programs and of other providers of federally assisted housing, which are al- ternatives to oversight by the Department of Housing and Urban Development; and ‘‘(2) to identify specific monitoring and oversight activities currently conducted by the Department of Housing and Urban Development and to evaluate whether such activities should be eliminated, ex- panded, modified, or transferred to other entities (in- cluding governmental and private entities) to in- crease accuracy and effectiveness and improve moni- toring. ‘‘(c) EVALUATION OF VARIOUS PERFORMANCE EVALUA- TION SYSTEMS.—To carry out the purposes under sub- section (b), the study under this section shall identify, and analyze the advantages and disadvantages of var- ious methods of regulating and evaluating the perform- ance of public housing agencies and other providers of federally assisted housing, including the following methods: ‘‘(1) CURRENT SYSTEM.—The system pursuant to the United States Housing Act of 1937 [42 U.S.C. 1437 et seq.], including the methods and requirements under such system for reporting, auditing, reviewing, sanc- tioning, and monitoring of such agencies and housing providers and the public housing management assess- ment program pursuant to section 6(j) of the United States Housing Act of 1937 [42 U.S.C. 1437d(j)]. ‘‘(2) ACCREDITATION MODELS.—Various models that are based upon accreditation of such agencies and housing providers, subject to the following require- ments: ‘‘(A) The study shall identify and analyze various models used in other industries and professions for accreditation and determine the extent of their ap- plicability to the programs for public housing and federally assisted housing. ‘‘(B) If any accreditation models are determined to be applicable to the public and federally assisted housing programs, the study shall identify appro- priate goals, objectives, and procedures for an ac- creditation program for such agencies and housing providers. ‘‘(C) The study shall evaluate the feasibility and merit of establishing an independent accreditation and evaluation entity to assist, supplement, or re- place the role of the Department of Housing and Urban Development in assessing and monitoring the performance of such agencies and housing pro- viders. ‘‘(D) The study shall identify the necessary and appropriate roles and responsibilities of various en- tities that would be involved in an accreditation program, including the Department of Housing and Urban Development, the Inspector General of the Department, an accreditation entity, independent auditors and examiners, local entities, and public housing agencies. ‘‘(E) The study shall estimate the costs involved in developing and maintaining such an independent accreditation program. ‘‘(3) PERFORMANCE BASED MODELS.—Various per- formance-based models, including systems that es- tablish performance goals or targets, assess the com- pliance with such goals or targets, and provide for in- centives or sanctions based on performance relative to such goals or targets. ‘‘(4) LOCAL REVIEW AND MONITORING MODELS.—Var- ious models providing for local, resident, and commu- nity review and monitoring of such agencies and housing providers, including systems for review and monitoring by local and State governmental bodies and agencies. ‘‘(5) PRIVATE MODELS.—Various models using pri- vate contractors for review and monitoring of such agencies and housing providers. ‘‘(6) OTHER MODELS.—Various models of any other systems that may be more effective and efficient in regulating and evaluating such agencies and housing providers. ‘‘(d) CONSULTATION.—The entity that, pursuant to subsection (e), carries out the study under this section shall, in carrying out the study, consult with individ- uals and organizations experienced in managing public Page 4577 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437e housing, private real estate managers, representatives from State and local governments, residents of public housing, families and individuals receiving tenant- based assistance, the Secretary of Housing and Urban Development, the Inspector General of the Department of Housing and Urban Development, and the Comp- troller General of the United States. ‘‘(e) CONTRACT TO CONDUCT STUDY.— ‘‘(1) IN GENERAL.—Subject to paragraph (2), the Sec- retary shall enter into a contract, within 90 days of the enactment of this Act [Oct. 21, 1998], with a public or nonprofit private entity to conduct the study under this section, using amounts made available pursuant to subsection (g). ‘‘(2) NATIONAL ACADEMY OF PUBLIC ADMINISTRA- TION.—The Secretary shall request the National Academy of Public Administration to enter into the contract under paragraph (1) to conduct the study under this section. If such Academy declines to con- duct the study, the Secretary shall carry out such paragraph through other public or nonprofit private entities, selected through a competitive process. ‘‘(f) REPORT.— ‘‘(1) INTERIM REPORT.—The Secretary shall ensure that, not later than the expiration of the 6-month pe- riod beginning on the date of the execution of the contract under subsection (e)(1), the entity con- ducting the study under this section submits to the Congress an interim report describing the actions taken to carry out the study, the actions to be taken to complete the study, and any findings and rec- ommendations available at the time. ‘‘(2) FINAL REPORT.—The Secretary shall ensure that— ‘‘(A) not later than the expiration of the 12-month period beginning on the date of the execution of the contract under subsection (e)(1), the study required under this section is completed and a report de- scribing the findings and recommendations as a re- sult of the study is submitted to the Congress; and ‘‘(B) before submitting the report under this para- graph to the Congress, the report is submitted to the Secretary, national organizations for public housing agencies, and other appropriate national organizations at such time to provide the Secretary and such agencies an opportunity to review the re- port and provide written comments on the report, which shall be included together with the report upon submission to the Congress under subpara- graph (A). ‘‘(g) EFFECTIVE DATE.—This section shall take effect on the date of the enactment of this Act [Oct. 21, 1998].’’ REFERENCES IN OTHER LAWS TO PREFERENCES FOR ASSISTANCE Pub. L. 104–99, title IV, § 402(d)(6)(D), Jan. 26, 1996, 110 Stat. 43, which provided that certain references to pref- erences for assistance under sections 1437d(c)(4)(A)(i) and 1437f(d)(1)(A)(i), (o)(3)(B) of this title, as such sec- tions existed on the day before Jan. 26, 1996, were to be considered to refer to the written system of preferences for selection established pursuant to sections 1437d(c)(4)(A) and 1437f(d)(1)(A), (o)(3)(B) of this title, re- spectively, as amended by section 402 of Pub. L. 104–99, was repealed by Pub. L. 105–276, title V, § 514(b)(2)(D), Oct. 21, 1998, 112 Stat. 2548. INAPPLICABILITY OF CERTAIN 1992 AMENDMENTS TO INDIAN PUBLIC HOUSING Amendment by sections 622(b) and 625(a)(2) of Pub. L. 102–550 not applicable with respect to lower income housing developed or operated pursuant to contract be- tween Secretary of Housing and Urban Development and Indian housing authority, see section 626 of Pub. L. 102–550, set out as a note under section 1437a of this title. REPORT ON TRAINING AND CERTIFICATION STANDARDS Pub. L. 101–625, title V, § 502(b), Nov. 28, 1990, 104 Stat. 4183, directed Secretary to submit to Congress, not later than 12 months after Nov. 28, 1990, a report re- garding the feasibility and effectiveness of establishing uniform standards for training and certification of ex- ecutive directors and other officers and members of local, regional, and State public housing agencies. APPLICABILITY Pub. L. 101–625, title V, § 503(d), Nov. 28, 1990, 104 Stat. 4185, provided that: ‘‘Any exclusion of grievances by a public housing agency pursuant to a determination or waiver by the Secretary (under section 6(k) of the United States Housing Act of 1937 [42 U.S.C. 1437d(k)], as such section existed before the date of the enact- ment of this Act [Nov. 28, 1990]) that a jurisdiction re- quires a hearing in court providing the basic elements of due process shall be effective after the date of the enactment of this Act only to the extent that the ex- clusion complies with the amendments made by this section, except that any such waiver provided before the date of the enactment of this Act shall remain in effect until the earlier of the effective date of the final rules implementing the amendments made by this sec- tion or 180 days after the date of the enactment.’’ REPORT ON IMPACT OF PUBLIC HOUSING LEASE AND GRIEVANCE REGULATION ON ABILITY OF PUBLIC HOUS- ING AGENCIES TO TAKE ACTION AGAINST TENANTS ENGAGING IN DRUG CRIMES Pub. L. 100–690, title V, § 5103, Nov. 18, 1988, 102 Stat. 4300, directed the Secretary of Housing and Urban De- velopment to submit to Congress a report, not later than 12 months after Nov. 18, 1988, on the impact of the implementation of the public housing tenancy and ad- ministrative grievance procedure regulations issued under subsec. (k) of this section on the ability of public housing agencies to evict or take other appropriate ac- tion against tenants engaging in criminal activity, es- pecially with respect to the manufacture, sale, dis- tribution, use, or possession of controlled substances. INDIAN HOUSING Pub. L. 100–628, title X, § 1014(a)(2), Nov. 7, 1988, 102 Stat. 3269, provided that: ‘‘In accordance with section 201(b)(2) of the United States Housing Act of 1937 [former section 1437aa(b)(2) of this title], the amend- ments made by paragraph (1) [amending this section] shall also apply to public housing developed or oper- ated pursuant to a contract between the Secretary of Housing and Urban Development and an Indian housing authority.’’ STUDY OF PAYMENTS IN LIEU OF TAXES; REPORT TO CONGRESS Pub. L. 95–128, title II, § 201(g), Oct. 12, 1977, 91 Stat. 1129, provided that the Secretary of Housing and Urban Development conduct a study of payment in lieu of taxes made under subsec. (d) of this section and report to the Congress on the status and adequacy of such payments not later than 12 months after Oct. 12, 1977. § 1437e. Designated housing for elderly and dis- abled families (a) Authority to provide designated housing (1) In general Subject only to provisions of this section and notwithstanding any other provision of law, a public housing agency for which a plan under subsection (d) is in effect may provide public housing projects (or portions of projects) designated for occupancy by (A) only elderly families, (B) only disabled families, or (C) elderly and disabled families. (2) Priority for occupancy In determining priority for admission to public housing projects (or portions of