42 U.S.C. § 1437e — Designated housing for elderly and dis-

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 Page 4578 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437e 1 See References in Text note below. projects) that are designated for occupancy as provided in paragraph (1), the public housing agency may make units in such projects (or portions) available only to the types of fami- lies for whom the project is designated. (3) Eligibility of near-elderly families If a public housing agency determines that there are insufficient numbers of elderly fami- lies to fill all the units in a project (or portion of a project) designated under paragraph (1) for occupancy by only elderly families, the agency may provide that near-elderly families may occupy dwelling units in the project (or portion). (b) Standards regarding evictions Except as provided in section 1437n(e)(1)(B) 1 of this title, any tenant who is lawfully residing in a dwelling unit in a public housing project may not be evicted or otherwise required to vacate such unit because of the designation of the project (or portion of a project) pursuant to this section or because of any action taken by the Secretary or any public housing agency pursu- ant to this section. (c) Relocation assistance A public housing agency that designates any existing project or building, or portion thereof, for occupancy as provided under subsection (a)(1) shall provide, to each person and family who agrees to be relocated in connection with such designation— (1) notice of the designation and an expla- nation of available relocation benefits, as soon as is practicable for the agency and the person or family; (2) access to comparable housing (including appropriate services and design features), which may include tenant-based rental assist- ance under section 1437f of this title, at a rent- al rate paid by the tenant that is comparable to that applicable to the unit from which the person or family has vacated; and (3) payment of actual, reasonable moving ex- penses. (d) Required plan A plan under this subsection for designating a project (or portion of a project) for occupancy under subsection (a)(1) is a plan, prepared by the public housing agency for the project and sub- mitted to the Secretary, that— (1) establishes that the designation of the project is necessary— (A) to achieve the housing goals for the ju- risdiction under the comprehensive housing affordability strategy under section 12705 of this title; and (B) to meet the housing needs of the low- income population of the jurisdiction; and (2) includes a description of— (A) the project (or portion of a project) to be designated; (B) the types of tenants for which the project is to be designated; (C) any supportive services to be provided to tenants of the designated project (or por- tion); (D) how the design and related facilities (as such term is defined in section 1701q(d)(8) 1 of title 12) of the project accom- modate the special environmental needs of the intended occupants; and (E) any plans to secure additional re- sources or housing assistance to provide as- sistance to families that may have been housed if occupancy in the project were not restricted pursuant to this section. For purposes of this subsection, the term ‘‘sup- portive services’’ means services designed to meet the special needs of residents. (e) Review of plans (1) Review and notification The Secretary shall conduct a limited re- view of each plan under subsection (d) that is submitted to the Secretary to ensure that the plan is complete and complies with the re- quirements of subsection (d). The Secretary shall notify each public housing agency sub- mitting a plan whether the plan complies with such requirements not later than 60 days after receiving the plan. If the Secretary does not notify the public housing agency, as required under this paragraph or paragraph (2), the plan shall be considered, for purposes of this sec- tion, to comply with the requirements under subsection (d) and the Secretary shall be con- sidered to have notified the agency of such compliance upon the expiration of such 60-day period. (2) Notice of reasons for determination of non- compliance If the Secretary determines that a plan, as submitted, does not comply with the require- ments under subsection (d), the Secretary shall specify in the notice under paragraph (1) the reasons for the noncompliance and any modifications necessary for the plan to meet such requirements. (3) Standards for determination of noncompli- ance The Secretary may determine that a plan does not comply with the requirements under subsection (d) only if— (A) the plan is incomplete in significant matters required under such subsection; or (B) there is evidence available to the Sec- retary that challenges, in a substantial man- ner, any information provided in the plan. (4) Treatment of existing plans Notwithstanding any other provision of this section, a public housing agency shall be con- sidered to have submitted a plan under this subsection if the agency has submitted to the Secretary an application and allocation plan under this section (as in effect before March 28, 1996) that have not been approved or dis- approved before March 28, 1996. (f) Effectiveness (1) 5-year effectiveness of original plan A plan under subsection (d) shall be in effect for purposes of this section during the 5-year period that begins upon notification under subsection (e)(1) of the public housing agency that the plan complies with the requirements under subsection (d). Page 4579 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437e (2) Renewal of plan Upon the expiration of the 5-year period under paragraph (1) or any 2-year period under this paragraph, an agency may extend the ef- fectiveness of the designation and plan for an additional 2-year period (that begins upon such expiration) by submitting to the Sec- retary any information needed to update the plan. The Secretary may not limit the number of times a public housing agency extends the effectiveness of a designation and plan under this paragraph. (3) Transition provision Any application and allocation plan ap- proved under this section (as in effect before March 28, 1996) before March 28, 1996, shall be considered to be a plan under subsection (d) that is in effect for purposes of this section for the 5-year period beginning upon such ap- proval. (g) Inapplicability of Uniform Relocation Assist- ance and Real Property Acquisitions Policy Act of 1970 No tenant of a public housing project shall be considered to be displaced for purposes of the Uniform Relocation Assistance and Real Prop- erty Acquisitions Policy Act of 1970 [42 U.S.C. 4601 et seq.] because of the designation of any existing project or building, or portion thereof, for occupancy as provided under subsection (a) of this section. (Sept. 1, 1937, ch. 896, title I, § 7, as added Pub. L. 93–383, title II, § 201(a), Aug. 22, 1974, 88 Stat. 662; amended Pub. L. 95–557, title IV, § 412, Oct. 31, 1978, 92 Stat. 2110; Pub. L. 100–242, title I, § 112(b)(3), Feb. 5, 1988, 101 Stat. 1824; renumbered title I, Pub. L. 100–358, § 5, June 29, 1988, 102 Stat. 681; amended Pub. L. 102–550, title VI, § 622(a), Oct. 28, 1992, 106 Stat. 3813; Pub. L. 104–99, title IV, § 402(d)(6)(A)(ii), Jan. 26, 1996, 110 Stat. 42; Pub. L. 104–120, § 10(a), Mar. 28, 1996, 110 Stat. 838; Pub. L. 104–330, title V, § 501(b)(4), Oct. 26, 1996, 110 Stat. 4042; Pub. L. 105–276, title V, § 595(d), Oct. 21, 1998, 112 Stat. 2656.) Editorial Notes REFERENCES IN TEXT Section 1437n(e)(1)(B) of this title, referred to in sub- sec. (b), was repealed by Pub. L. 105–276, title V, § 576(d)(2), Oct. 21, 1998, 112 Stat. 2640. Section 1701q of title 12, referred to in subsec. (d)(2)(D), was amended generally by Pub. L. 101–625, title VIII, § 801(a), Nov. 28, 1990, 104 Stat. 4297, and, as so amended, does not contain a subsec. (d)(8) or a defini- tion of the term ‘‘related facilities’’. The Uniform Relocation Assistance and Real Prop- erty Acquisitions Policy Act of 1970, referred to in sub- sec. (g), probably means the Uniform Relocation Assist- ance and Real Property Acquisition Policy Act of 1970, Pub. L. 91–646, Jan. 2, 1971, 84 Stat. 1894, which is classi- fied principally to chapter 61 (§ 4601 et seq.) of this title. For complete classification of this Act to the Code, see Short Title note set out under section 4601 of this title and Tables. PRIOR PROVISIONS A prior section 7 of act Sept. 1, 1937, ch. 896, 50 Stat. 891, as amended, required publication of information and submission of annual report by the Authority and was classified to section 1407 of this title, prior to the general revision of this chapter by Pub. L. 93–383. AMENDMENTS 1998—Subsec. (h). Pub. L. 105–276 struck out heading and text of subsec. (h). Text read as follows: ‘‘The pro- visions of this section shall not apply with respect to low-income housing developed or operated pursuant to a contract between the Secretary and an Indian hous- ing authority.’’ 1996—Pub. L. 104–330, § 501(b)(4), which directed amendment of ‘‘subsection 7’’ of the United States Housing Act of 1937, probably meaning this section, by striking subsec. (l), could not be executed because this section does not contain a subsec. (l). Pub. L. 104–120 amended section generally, restating former subsecs. (a) to (g) relating to designated housing as subsecs. (a) to (h) relating to designated housing for elderly and disabled families. Subsec. (a)(2). Pub. L. 104–99, which directed the tem- porary amendment of par. (2) by substituting ‘‘in ac- cordance with the written system of preferences for se- lection established pursuant to’’ for ‘‘according to the preferences for occupancy under’’, could not be exe- cuted because of the amendment by Pub. L. 104–120 which amended section generally retroactive to Oct. 1, 1995. See Effective and Termination Dates of 1996 Amendments note below. 1992—Pub. L. 102–550 amended section generally, sub- stituting present provisions for provisions relating to and defining ‘‘congregate housing’’ and providing for design, development, and acquisition of congregate housing for displaced or elderly families, limitation on amounts for contracts for congregate housing, and costs for central dining facilities. 1988—Pub. L. 100–242 struck out ‘‘annual’’ before ‘‘contributions’’ in proviso. 1978—Pub. L. 95–557 substituted ‘‘(1) low-rent housing which, as of January 1, 1979, was built or under con- struction, with which there is connected a central din- ing facility where wholesome and economical meals can be served to such occupants; or (2) low-rent housing constructed after, but not under construction prior to, January 1, 1979, connected with which there is a central dining facility to provide wholesome and economical meals for such occupants. Such occupants of con- gregate housing may also be provided with other sup- portive services appropriate to their needs under title IV of the Housing and Community Development Amendments of 1978’’ for ‘‘low-income housing (A) in which some or all of the dwelling units do not have kitchen facilities, and (B) connected with which there is a central dining facility to provide wholesome and economical meals for elderly and displaced families under terms and conditions prescribed by the public housing agency to permit a generally self-supporting operation’’. Statutory Notes and Related Subsidiaries EFFECTIVE AND TERMINATION DATES OF 1996 AMENDMENTS Amendment by Pub. L. 104–330 effective Oct. 1, 1997, except as otherwise expressly provided, see section 107 of Pub. L. 104–330, set out as an Effective Date note under section 4101 of Title 25, Indians. Amendment by Pub. L. 104–120 to be construed to have become effective Oct. 1, 1995, notwithstanding the effective date of any regulations issued by Secretary of Housing and Urban Development to implement amend- ments by sections 9 and 10 of Pub. L. 104–120 or any fail- ure by Secretary to issue any such regulations, see sec- tion 13 of Pub. L. 104–120, set out as a note under sec- tion 1437d of this title. Amendment by Pub. L. 104–99 effective Jan. 26, 1996, only for fiscal years 1996, 1997, and 1998, and to cease to be effective Oct. 21, 1998, see section 402(f) of Pub. L. 104–99, as amended, and section 514(f) of Pub. L. 105–276, set out as notes under section 1437a of this title. EFFECTIVE DATE OF 1992 AMENDMENT Amendment by subtitles B through F of title VI [§§ 621–685] of Pub. L. 102–550 applicable upon expiration Page 4580 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437f of 6-month period beginning Oct. 28, 1992, except as oth- erwise provided, see section 13642 of this title. INAPPLICABILITY OF CERTAIN 1992 AMENDMENTS TO INDIAN PUBLIC HOUSING Amendment by Pub. L. 102–550 not applicable with re- spect to lower income housing developed or operated pursuant to contract between Secretary of Housing and Urban Development and Indian housing authority, see section 626 of Pub. L. 102–550, set out as a note under section 1437a of this title. § 1437f. Low-income housing assistance (a) Authorization for assistance payments For the purpose of aiding low-income families in obtaining a decent place to live and of pro- moting economically mixed housing, assistance payments may be made with respect to existing housing in accordance with the provisions of this section. (b) Other existing housing programs (1) IN GENERAL.—The Secretary is authorized to enter into annual contributions contracts with public housing agencies pursuant to which such agencies may enter into contracts to make assistance payments to owners of existing dwell- ing units in accordance with this section. In areas where no public housing agency has been organized or where the Secretary determines that a public housing agency is unable to imple- ment the provisions of this section, the Sec- retary is authorized to enter into such contracts and to perform the other functions assigned to a public housing agency by this section. (2) The Secretary is authorized to enter into annual contributions contracts with public housing agencies for the purpose of replacing public housing transferred in accordance with subchapter II–A of this chapter. Each contract entered into under this subsection shall be for a term of not more than 60 months. (c) Contents and purposes of contracts for assist- ance payments; amount and scope of month- ly assistance payments (1)(A) An assistance contract entered into pur- suant to this section shall establish the max- imum monthly rent (including utilities and all maintenance and management charges) which the owner is entitled to receive for each dwell- ing unit with respect to which such assistance payments are to be made. The maximum month- ly rent shall not exceed by more than 10 per cen- tum the fair market rental established by the Secretary periodically but not less than annu- ally for existing or newly constructed rental dwelling units of various sizes and types in the market area suitable for occupancy by persons assisted under this section, except that the max- imum monthly rent may exceed the fair market rental (A) by more than 10 but not more than 20 per centum where the Secretary determines that special circumstances warrant such higher max- imum rent or that such higher rent is necessary to the implementation of a housing strategy as defined in section 12705 of this title, or (B) by such higher amount as may be requested by a tenant and approved by the public housing agen- cy in accordance with paragraph (3)(B). In the case of newly constructed and substantially re- habilitated units, the exception in the preceding sentence shall not apply to more than 20 per centum of the total amount of authority to enter into annual contributions contracts for such units which is allocated to an area and ob- ligated with respect to any fiscal year beginning on or after October 1, 1980. Each fair market rental in effect under this subsection shall be adjusted to be effective on October 1 of each year to reflect changes, based on the most re- cent available data trended so the rentals will be current for the year to which they apply, of rents for existing or newly constructed rental dwelling units, as the case may be, of various sizes and types in the market area suitable for occupancy by persons assisted under this sec- tion. Notwithstanding any other provision of this section, after October 12, 1977, the Secretary shall prohibit high-rise elevator projects for families with children unless there is no prac- tical alternative. If units assisted under this section are exempt from local rent control while they are so assisted or otherwise, the maximum monthly rent for such units shall be reasonable in comparison with other units in the market area that are exempt from local rent control. (B) Fair market rentals for an area shall be published not less than annually by the Sec- retary on the site of the Department on the World Wide Web and in any other manner speci- fied by the Secretary. Notice that such fair mar- ket rentals are being published shall be pub- lished in the Federal Register, and such fair market rentals shall become effective no earlier than 30 days after the date of such publication. The Secretary shall establish a procedure for public housing agencies and other interested parties to comment on such fair market rentals and to request, within a time specified by the Secretary, reevaluation of the fair market rent- als in a jurisdiction before such rentals become effective. The Secretary shall cause to be pub- lished for comment in the Federal Register no- tices of proposed material changes in the meth- odology for estimating fair market rentals and notices specifying the final decisions regarding such proposed substantial methodological changes and responses to public comments. (2)(A) The assistance contract shall provide for adjustment annually or more frequently in the maximum monthly rents for units covered by the contract to reflect changes in the fair mar- ket rentals established in the housing area for similar types and sizes of dwelling units or, if the Secretary determines, on the basis of a rea- sonable formula. However, where the maximum monthly rent, for a unit in a new construction, substantial rehabilitation, or moderate rehabili- tation project, to be adjusted using an annual adjustment factor exceeds the fair market rent- al for an existing dwelling unit in the market area, the Secretary shall adjust the rent only to the extent that the owner demonstrates that the adjusted rent would not exceed the rent for an unassisted unit of similar quality, type, and age in the same market area, as determined by the Secretary. The immediately foregoing sentence shall be effective only during fiscal year 1995, fiscal year 1996 prior to April 26, 1996, and fiscal years 1997 and 1998, and during fiscal year 1999 and thereafter. Except for assistance under the certificate program, for any unit occupied by