42 U.S.C. § 1437v — Demolition, site revitalization, replace-

Page 4693 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437v 1 So in original. Probably should be ‘‘and’’. § 1437v. Demolition, site revitalization, replace- ment housing, and tenant-based assistance grants for projects (a) Purposes The purpose of this section is to provide as- sistance to public housing agencies for the pur- poses of— (1) improving the living environment for public housing residents of severely distressed public housing projects through the demoli- tion, rehabilitation, reconfiguration, or re- placement of obsolete public housing projects (or portions thereof); (2) revitalizing sites (including remaining public housing dwelling units) on which such public housing projects are located and con- tributing to the improvement of the sur- rounding neighborhood; (3) providing housing that will avoid or de- crease the concentration of very low-income families; and (4) building sustainable communities. It is also the purpose of this section to provide assistance to smaller communities for the pur- pose of facilitating the development of afford- able housing for low-income families that is un- dertaken in connection with a main street revi- talization or redevelopment project in such com- munities. (b) Grant authority The Secretary may make grants as provided in this section to applicants whose applications for such grants are approved by the Secretary under this section. (c) Contribution requirement (1) In general The Secretary may not make any grant under this section to any applicant unless the applicant certifies to the Secretary that the applicant will— (A) supplement the aggregate amount of assistance provided under this section with an amount of funds from sources other than this section equal to not less than 5 percent of the amount provided under this section; and (B) in addition to supplemental amounts provided in accordance with subparagraph (A), if the applicant uses more than 5 per- cent of the amount of assistance provided under this section for services under sub- section (d)(1)(L), provide supplemental funds from sources other than this section in an amount equal to the amount so used in ex- cess of 5 percent. (2) Supplemental funds In calculating the amount of supplemental funds provided by a grantee for purposes of paragraph (1), the grantee may include amounts from other Federal sources, any State or local government sources, any pri- vate contributions, the value of any donated material or building, the value of any lease on a building, the value of the time and services contributed by volunteers, and the value of any other in-kind services or administrative costs provided. (3) Exemption If assistance provided under this subchapter will be used only for providing tenant-based assistance under section 1437f of this title or demolition of public housing (without replace- ment), the Secretary may exempt the appli- cant from the requirements under paragraph (1)(A). (d) Eligible activities (1) In general Grants under this section may be used for activities to carry out revitalization programs for severely distressed public housing, includ- ing— (A) architectural and engineering work; (B) redesign, rehabilitation, or reconfig- uration of a severely distressed public hous- ing project, including the site on which the project is located; (C) the demolition, sale, or lease of the site, in whole or in part; (D) covering the administrative costs of the applicant, which may not exceed such portion of the assistance provided under this section as the Secretary may prescribe; (E) payment of reasonable legal fees; (F) providing reasonable moving expenses for residents displaced as a result of the re- vitalization of the project; (G) economic development activities that promote the economic self-sufficiency of residents under the revitalization program, including a Neighborhood Networks initia- tive for the establishment and operation of computer centers in public housing for the purpose of enhancing the self-sufficiency, employability, an 1 economic self-reliance of public housing residents by providing them with onsite computer access and training re- sources; (H) necessary management improvements; (I) leveraging other resources, including additional housing resources, retail sup- portive services, jobs, and other economic development uses on or near the project that will benefit future residents of the site; (J) replacement housing (including appro- priate homeownership downpayment assist- ance for displaced residents or other appro- priate replacement homeownership activi- ties) and rental assistance under section 1437f of this title; (K) transitional security activities; and (L) necessary supportive services, except that not more than 15 percent of the amount of any grant may be used for activities under this paragraph. (2) Endowment trust for supportive services In using grant amounts under this section made available in fiscal year 2000 or thereafter for supportive services under paragraph (1)(L), a public housing agency may deposit such amounts in an endowment trust to provide supportive services over such period of time as the agency determines. Such amounts shall be provided to the agency by the Secretary in a lump sum when requested by the agency, shall Page 4694 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437v be invested in a wise and prudent manner, and shall be used (together with any interest thereon earned) only for eligible uses pursuant to paragraph (1)(L). A public housing agency may use amounts in an endowment trust under this paragraph in conjunction with other amounts donated or otherwise made available to the trust for similar purposes. (e) Application and selection (1) Application An application for a grant under this section shall demonstrate the appropriateness of the proposal in the context of the local housing market relative to other alternatives, and shall include such other information and be submitted at such time and in accordance with such procedures, as the Secretary shall prescribe. (2) Selection criteria The Secretary shall establish criteria for the award of grants under this section and shall include among the factors— (A) the relationship of the grant to the public housing agency plan for the applicant and how the grant will result in a revitalized site that will enhance the neighborhood in which the project is located and enhance economic opportunities for residents; (B) the capability and record of the appli- cant public housing agency, or any alter- native management entity for the agency, for managing redevelopment or moderniza- tion projects, meeting construction time- tables, and obligating amounts in a timely manner; (C) the extent to which the applicant could undertake such activities without a grant under this section; (D) the extent of involvement of residents, State and local governments, private service providers, financing entities, and developers, in the development and ongoing implemen- tation of a revitalization program for the project, except that the Secretary may not award a grant under this section unless the applicant has involved affected public hous- ing residents at the beginning and during the planning process for the revitalization program, prior to submission of an applica- tion; (E) the need for affordable housing in the community; (F) the supply of other housing available and affordable to families receiving tenant- based assistance under section 1437f of this title; (G) the amount of funds and other re- sources to be leveraged by the grant; (H) the extent of the need for, and the po- tential impact of, the revitalization pro- gram; (I) the extent to which the plan minimizes permanent displacement of current residents of the public housing site who wish to re- main in or return to the revitalized commu- nity and provides for community and sup- portive services to residents prior to any re- location; (J) the extent to which the plan sustains or creates more project-based housing units available to persons eligible for public hous- ing in markets where the plan shows there is demand for the maintenance or creation of such units; (K) the extent to which the plan gives to existing residents priority for occupancy in dwelling units which are public housing dwelling units, or for residents who can af- ford to live in other units, priority for those units in the revitalized community; and (L) such other factors as the Secretary considers appropriate. (3) Applicability of selection criteria The Secretary may determine not to apply certain of the selection criteria established pursuant to paragraph (2) when awarding grants for demolition only, tenant-based as- sistance only, or other specific categories of revitalization activities. This section may not be construed to require any application for a grant under this section to include demolition of public housing or to preclude use of grant amounts for rehabilitation or rebuilding of any housing on an existing site. (f) Cost limits Subject to the provisions of this section, the Secretary— (1) shall establish cost limits on eligible ac- tivities under this section sufficient to provide for effective revitalization programs; and (2) may establish other cost limits on eligi- ble activities under this section. (g) Disposition and replacement Any severely distressed public housing dis- posed of pursuant to a revitalization plan and any public housing developed in lieu of such se- verely distressed housing, shall be subject to the provisions of section 1437p of this title. Severely distressed public housing demolished pursuant to a revitalization plan shall not be subject to the provisions of section 1437p of this title. (h) Administration by other entities The Secretary may require a grantee under this section to make arrangements satisfactory to the Secretary for use of an entity other than the public housing agency to carry out activi- ties assisted under the revitalization plan, if the Secretary determines that such action will help to effectuate the purposes of this section. (i) Withdrawal of funding If a grantee under this section does not pro- ceed within a reasonable timeframe, in the de- termination of the Secretary, the Secretary shall withdraw any grant amounts under this section that have not been obligated by the pub- lic housing agency. The Secretary shall redis- tribute any withdrawn amounts to one or more other applicants eligible for assistance under this section or to one or more other entities ca- pable of proceeding expeditiously in the same lo- cality in carrying out the revitalization plan of the original grantee. (j) Definitions For purposes of this section, the following definitions shall apply: (1) Applicant The term ‘‘applicant’’ means— Page 4695 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437v 2 So in original. 3 So in original. Probably should be ‘‘Neighborhood’’. (A) any public housing agency that is not designated as troubled pursuant to section 1437d(j)(2) of this title; (B) any public housing agency for which a private housing management agent has been selected, or a receiver has been appointed, pursuant to section 1437d(j)(3) of this title; and (C) any public housing agency that is des- ignated as troubled pursuant to section 1437d(j)(2) of this title and that— (i) is so designated principally for rea- sons that will not affect the capacity of the agency to carry out a revitalization program; (ii) is making substantial progress to- ward eliminating the deficiencies of the agency; or (iii) is otherwise determined by the Sec- retary to be capable of carrying out a revi- talization program. (2) Severely distressed public housing The term ‘‘severely distressed public hous- ing’’ means a public housing project (or build- ing in a project)— (A) that— (i) requires major redesign, reconstruc- tion or redevelopment, or partial or total demolition, to correct serious deficiencies in the original design (including inappro- priately high population density), deferred maintenance, physical deterioration or ob- solescence of major systems and other de- ficiencies in the physical plant of the project; (ii) is a significant contributing factor to the physical decline of and disinvestment by public and private entities in the sur- rounding neighborhood; (iii)(I) is occupied predominantly by families who are very low-income families with children, are unemployed, and de- pendent on various forms of public assist- ance; (II) has high rates of vandalism and criminal activity (including drug-related criminal activity) in comparison to other housing in the area; or (III) is lacking in sufficient appropriate transportation, supportive services, eco- nomic opportunity, schools, civic and reli- gious institutions, and public services, re- sulting in severe social distress in the project; (iv) cannot be revitalized through assist- ance under other programs, such as the program for capital and operating assist- ance for public housing under this chapter, or the programs under sections 1437g and 1437l of this title (as in effect before the ef- fective date under under 2 section 503(a) 2 the Quality Housing and Work Responsi- bility Act of 1998), because of cost con- straints and inadequacy of available amounts; and (v) in the case of individual buildings, is, in the Secretary’s determination, suffi- ciently separable from the remainder of the project of which the building is part to make use of the building feasible for pur- poses of this section; or (B) that was a project described in sub- paragraph (A) that has been legally vacated or demolished, but for which the Secretary has not yet provided replacement housing assistance (other than tenant-based assist- ance). (3) Supportive services The term ‘‘supportive services’’ includes all activities that will promote upward mobility, self-sufficiency, and improved quality of life for the residents of the public housing project involved, including literacy training, job training, day care, transportation, and eco- nomic development activities. (k) Grantee reporting The Secretary shall require grantees of assist- ance under this section to report the sources and uses of all amounts expended for revitalization plans. (l) Annual report The Secretary shall submit to the Congress an annual report setting forth— (1) the number, type, and cost of public hous- ing units revitalized pursuant to this section; (2) the status of projects identified as se- verely distressed public housing; (3) the amount and type of financial assist- ance provided under and in conjunction with this section, including a specification of the amount and type of assistance provided under subsection (n); (4) the types of projects funded, and number of affordable housing dwelling units developed with, grants under subsection (n); and (5) the recommendations of the Secretary for statutory and regulatory improvements to the program established by this section. (m) Funding (1) Authorization of appropriations There are authorized to be appropriated for grants under this section $574,000,000 for fiscal year 2017. (2) Technical assistance and program oversight Of the amount appropriated pursuant to paragraph (1) for any fiscal year, the Sec- retary may use up to 2 percent for technical assistance or contract expertise, including as- sistance in connection with the establishment and operation of computer centers in public housing through the Neighborhoods 3 Networks initiative described in subsection (d)(1)(G). Such assistance or contract expertise may be provided directly or indirectly by grants, con- tracts, or cooperative agreements, and shall include training, and the cost of necessary travel for participants in such training, by or to officials of the Department of Housing and Urban Development, of public housing agen- cies, and of residents. (3) Set-aside for main street housing grants Of the amount appropriated pursuant to paragraph (1) for any fiscal year, the Sec- Page 4696 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437v retary shall provide up to 5 percent for use only for grants under subsection (n). (n) Grants for assisting affordable housing devel- oped through main street projects in smaller communities (1) Authority and use of grant amounts The Secretary may make grants under this subsection to smaller communities. Such grant amounts shall be used by smaller com- munities only to provide assistance to carry out eligible affordable housing activities under paragraph (4) in connection with an eligible project under paragraph (2). (2) Eligible project For purposes of this subsection, the term ‘‘eligible project’’ means a project that— (A) the Secretary determines, under the criteria established pursuant to paragraph (3), is a main street project; (B) is carried out within the jurisdiction of a smaller community receiving the grant; and (C) involves the development of affordable housing that is located in the commercial area that is the subject of the project. (3) Main street projects The Secretary shall establish requirements for a project to be considered a main street project for purposes of this section, which shall require that the project— (A) has as its purpose the revitalization or redevelopment of a historic or traditional commercial area; (B) involves investment, or other partici- pation, by the government for, and private entities in, the community in which the project is carried out; and (C) complies with such historic preserva- tion guidelines or principles as the Sec- retary shall identify to preserve significant historic or traditional architectural and de- sign features in the structures or area in- volved in the project. (4) Eligible affordable housing activities For purposes of this subsection, the activi- ties described in subsection (d)(1) shall be con- sidered eligible affordable housing activities, except that— (A) such activities shall be conducted with respect to affordable housing rather than with respect to severely distressed public housing projects; and (B) eligible affordable housing activities under this subsection shall not include the activities described in subparagraphs (B) through (E), (J), or (K) of subsection (d)(1). (5) Maximum grant amount A grant under this subsection for a fiscal year for a single smaller community may not exceed $1,000,000. (6) Contribution requirement A smaller community applying for a grant under this subsection shall be considered an applicant for purposes of subsection (c) (relat- ing to contributions by applicants), except that— (A) such supplemental amounts shall be used only for carrying out eligible affordable housing activities; and (B) paragraphs (1)(B) and (3) shall not apply to grants under this subsection. (7) Applications and selection (A) Application Pursuant to subsection (e)(1), the Sec- retary shall provide for smaller communities to apply for grants under this subsection, ex- cept that the Secretary may establish such separate or additional criteria for applica- tions for such grants as may be appropriate to carry out this subsection. (B) Selection criteria The Secretary shall establish selection cri- teria for the award of grants under this sub- section, which shall be based on the selec- tion criteria established pursuant to sub- section (e)(2), with such changes as may be appropriate to carry out the purposes of this subsection. (8) Cost limits The cost limits established pursuant to sub- section (f) shall apply to eligible affordable housing activities assisted with grant amounts under this subsection. (9) Inapplicability of other provisions The provisions of subsections (g) (relating to disposition and replacement of severely dis- tressed public housing), and (h) (relating to administration of grants by other entities), shall not apply to grants under this sub- section. (10) Reporting The Secretary shall require each smaller community receiving a grant under this sub- section to submit a report regarding the use of all amounts provided under the grant. (11) Definitions For purposes of this subsection, the fol- lowing definitions shall apply: (A) Affordable housing The term ‘‘affordable housing’’ means rental or homeownership dwelling units that— (i) are made available for initial occu- pancy to low-income families, with a sub- set of units made available to very- and extremely-low income families; and (ii) are subject to the same rules regard- ing occupant contribution toward rent or purchase and terms of rental or purchase as dwelling units in public housing projects assisted with a grant under this section. (B) Smaller community The term ‘‘smaller community’’ means a unit of general local government (as such term is defined in section 5302 of this title) that— (i) has a population of 50,000 or fewer; and (ii)(I) is not served by a public housing agency; or (II) is served by a single public housing agency, which agency administers 100 or fewer public housing dwelling units. Page 4697 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437v (o) Sunset No assistance may be provided under this sec- tion after September 30, 2017. (Sept. 1, 1937, ch. 896, title I, § 24, as added Pub. L. 102–550, title I, § 120, Oct. 28, 1992, 106 Stat. 3695; amended Pub. L. 104–99, title IV, § 402(d)(6)(A)(vi), Jan. 26, 1996, 110 Stat. 43; Pub. L. 104–330, title V, § 501(b)(9), Oct. 26, 1996, 110 Stat. 4042; Pub. L. 105–276, title V, § 535(a), Oct. 21, 1998, 112 Stat. 2581; Pub. L. 106–377, § 1(a)(1) [title II, § 214(b)], Oct. 27, 2000, 114 Stat. 1441, 1441A–27; Pub. L. 108–7, div. K, title II, § 215, Feb. 20, 2003, 117 Stat. 504; Pub. L. 108–186, title IV, §§ 402(a), (b), (d), (e), 403, Dec. 16, 2003, 117 Stat. 2693, 2694; Pub. L. 109–289, div. B, title II, § 21045, as added Pub. L. 110–5, § 2, Feb. 15, 2007, 121 Stat. 54; Pub. L. 110–161, div. K, title II, § 224, Dec. 26, 2007, 121 Stat. 2437; Pub. L. 111–8, div. I, title II, § 223, Mar. 11, 2009, 123 Stat. 976; Pub. L. 111–117, div. A, title II, § 222, Dec. 16, 2009, 123 Stat. 3101; Pub. L. 112–55, div. C, title II, § 222, Nov. 18, 2011, 125 Stat. 699; Pub. L. 113–76, div. L, title II, § 234, Jan. 17, 2014, 128 Stat. 634; Pub. L. 113–235, div. K, title II, § 229, Dec. 16, 2014, 128 Stat. 2756; Pub. L. 114–113, div. L, title II, § 228, Dec. 18, 2015, 129 Stat. 2895; Pub. L. 115–31, div. K, title II, § 226, May 5, 2017, 131 Stat. 787.) Editorial Notes REFERENCES IN TEXT Section 1437l of this title, referred to in subsec. (j)(2)(A)(iv), was repealed by Pub. L. 105–276, title V, § 522(a), Oct. 21, 1998, 112 Stat. 2564. Section 503(a) of the Quality Housing and Work Re- sponsibility Act of 1998, referred to in subsec. (j)(2)(A)(iv), is section 503(a) of Pub. L. 105–276, which is set out as an Effective Date of 1998 Amendment note under section 1437 of this title. AMENDMENTS 2017—Subsec. (m)(1). Pub. L. 115–31, § 226(1), sub- stituted ‘‘fiscal year 2017.’’ for ‘‘fiscal year 2016.’’ Subsec. (o). Pub. L. 115–31, § 226(2), substituted ‘‘Sep- tember 30, 2017.’’ for ‘‘September 30, 2016.’’ 2015—Subsec. (m)(1). Pub. L. 114–113, § 228(1), sub- stituted ‘‘fiscal year 2016.’’ for ‘‘fiscal year 2015.’’ Subsec. (o). Pub. L. 114–113, § 228(2), substituted ‘‘Sep- tember 30, 2016.’’ for ‘‘September 30, 2015.’’ 2014—Subsec. (m)(1). Pub. L. 113–235, § 229(1), sub- stituted ‘‘fiscal year 2015.’’ for ‘‘fiscal year 2014.’’ Pub. L. 113–76, § 234(1), substituted ‘‘fiscal year 2014.’’ for ‘‘fiscal year 2012.’’ Subsec. (o). Pub. L. 113–235, § 229(2), substituted ‘‘Sep- tember 30, 2015.’’ for ‘‘September 30, 2014.’’ Pub. L. 113–76, § 234(2), substituted ‘‘September 30, 2014.’’ for ‘‘September 30, 2012.’’ 2011—Subsec. (m)(1). Pub. L. 112–55, § 222(1), sub- stituted ‘‘fiscal year 2012.’’ for ‘‘fiscal year 2010.’’ Subsec. (o). Pub. L. 112–55, § 222(2), substituted ‘‘Sep- tember 30, 2012.’’ for ‘‘September 30, 2010.’’ 2009—Subsec. (m)(1). Pub. L. 111–117, § 222(1), sub- stituted ‘‘fiscal year 2010.’’ for ‘‘fiscal year 2009.’’ Pub. L. 111–8, § 223(1), which directed the substitution of ‘‘2009’’ for ‘‘2003’’, was executed by making the sub- stitution for ‘‘2008’’, to reflect the probable intent of Congress and the intervening amendment by Pub. L. 110–161, § 224(1). See 2007 Amendment note below. Subsec. (o). Pub. L. 111–117, § 222(2), substituted ‘‘Sep- tember 30, 2010.’’ for ‘‘September 30, 2009.’’ Pub. L. 111–8, § 223(2), which directed substitution of ‘‘September 30, 2009’’ for ‘‘September 30, 2007’’, was exe- cuted by making the substitution for ‘‘September 30, 2008’’, to reflect the probable intent of Congress and the intervening amendment by Pub. L. 110–161, § 224(2). See 2007 Amendment note below. 2007—Subsec. (m)(1). Pub. L. 110–161, § 224(1), which di- rected substitution of ‘‘2008’’ for ‘‘2003’’, was executed by making the substitution for ‘‘2007’’, to reflect the probable intent of Congress and the amendment by Pub. L. 109–289, § 21045(1), as added by Pub. L. 110–5. See below. Pub. L. 109–289, § 21045(1), as added by Pub. L. 110–5, substituted ‘‘2007’’ for ‘‘2003’’. Subsec. (o). Pub. L. 110–161, § 224(2), substituted ‘‘Sep- tember 30, 2008’’ for ‘‘September 30, 2007’’. Pub. L. 109–289, § 21045(2), as added by Pub. L. 110–5, substituted ‘‘September 30, 2007’’ for ‘‘September 30, 2006’’. 2003—Subsec. (a). Pub. L. 108–186, § 403(a), inserted concluding provisions. Subsec. (e)(2). Pub. L. 108–186, § 402(a)(1), substituted ‘‘The Secretary shall establish criteria for the award of grants under this section and shall include among the factors—’’ for ‘‘The Secretary shall establish selection criteria for the award of grants under this section and shall include such factors as—’’ in introductory provi- sions. Subsec. (e)(2)(B). Pub. L. 108–186, § 402(a)(2), struck out ‘‘large-scale’’ after ‘‘for managing’’. Subsec. (e)(2)(D). Pub. L. 108–186, § 402(a)(3), inserted ‘‘and ongoing implementation’’ after ‘‘development’’ and ‘‘, except that the Secretary may not award a grant under this section unless the applicant has in- volved affected public housing residents at the begin- ning and during the planning process for the revitaliza- tion program, prior to submission of an application’’ before semicolon at end. Subsec. (e)(2)(I) to (L). Pub. L. 108–186, § 402(a)(4)–(6), added subpars. (I) to (K) and redesignated former sub- par. (I) as (L). Subsec. (j)(2)(A)(iii)(III). Pub. L. 108–186, § 402(b), added subcl. (III). Subsec. (l)(3). Pub. L. 108–186, § 403(c)(1), substituted ‘‘, including a specification of the amount and type of assistance provided under subsection (n);’’ for ‘‘; and’’. Subsec. (l)(4), (5). Pub. L. 108–186, § 403(c)(2), (3), added par. (4) and redesignated former par. (4) as (5). Subsec. (m)(1). Pub. L. 108–186, § 402(d), which directed substitution of ‘‘through 2006’’ for ‘‘, 2001, and 2002’’ could not be executed because the words ‘‘, 2001, and 2002’’ did not appear subsequent to amendment by Pub. L. 108–7, § 215(a). See below. Pub. L. 108–7, § 215(a), substituted ‘‘$574,000,000 for fis- cal year 2003’’ for ‘‘$600,000,000 for fiscal year 1999 and such sums as may be necessary for each of fiscal years 2000, 2001, and 2002’’. Subsec. (m)(3). Pub. L. 108–186, § 403(d), added par. (3). Subsec. (n). Pub. L. 108–186, § 403(b)(2), added subsec. (n). Former subsec. (n) redesignated (o). Pub. L. 108–186, § 402(e), substituted ‘‘September 30, 2006’’ for ‘‘September 30, 2004’’. Pub. L. 108–7, § 215(b), substituted ‘‘September 30, 2004’’ for ‘‘September 30, 2002’’. Subsec. (o) Pub. L. 108–186, § 403(b)(1), redesignated subsec. (n) as (o). 2000—Subsec. (d)(1)(G). Pub. L. 106–377, § 1(a)(1) [title II, § 214(b)(1)], inserted before semicolon ‘‘, including a Neighborhood Networks initiative for the establish- ment and operation of computer centers in public hous- ing for the purpose of enhancing the self-sufficiency, employability, an economic self-reliance of public housing residents by providing them with onsite com- puter access and training resources’’. Subsec. (m)(2). Pub. L. 106–377, § 1(a)(1) [title II, § 214(b)(2)], inserted before period at end of first sen- tence ‘‘, including assistance in connection with the es- tablishment and operation of computer centers in pub- lic housing through the Neighborhoods Networks ini- tiative described in subsection (d)(1)(G)’’. 1998—Pub. L. 105–276 amended section generally. Prior to amendment, section authorized planning grants for development of revitalization programs for severely distressed public housing and implementation grants to carry out revitalization programs for such housing, au- thorized exceptions to general program rules, estab- Page 4698 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437w lished Office of Severely Distressed Public Housing Re- vitalization, and required annual report to Congress. 1996—Subsec. (e). Pub. L. 104–99 temporarily sub- stituted ‘‘Exception’’ for ‘‘Exceptions’’ in subsec. head- ing and struck out ‘‘(1) LONG-TERM VIABILITY.—’’ before ‘‘The Secretary may waive’’ and par. (2) which read as follows: ‘‘(2) SELECTION OF TENANTS.—For projects revitalized under this section, a public housing agency may select tenants pursuant to a local system of preferences, in lieu of selecting tenants pursuant to the preferences specified under section 1437d(c)(4)(A)(i) of this title. Such local system shall be established in writing and shall respond to local housing needs and priorities as determined by the public housing agency. The public housing agency shall hold 1 or more public hearings to obtain the views of low-income tenants and other inter- ested parties on the housing needs and priorities of the agency’s jurisdiction.’’ See Effective and Termination Dates of 1996 Amendments note below. Subsec. (h)(3). Pub. L. 104–330 struck out ‘‘, except that it does not include any Indian housing authority’’ after ‘‘section 1437a(b) of this title’’. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 1998 AMENDMENT Pub. L. 105–276, title V, § 535(b), Oct. 21, 1998, 112 Stat. 2586, provided that: ‘‘The amendment made by this sec- tion [amending this section] is made on, and shall apply beginning upon, the date of the enactment of this Act [Oct. 21, 1998].’’ EFFECTIVE AND TERMINATION DATES OF 1996 AMENDMENTS Amendment by Pub. L. 104–330 effective Oct. 1, 1997, except as otherwise expressly provided, see section 107 of Pub. L. 104–330, set out as an Effective Date note under section 4101 of Title 25, Indians. Amendment by Pub. L. 104–99 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. TERMINATION OF REPORTING REQUIREMENTS For termination, effective May 15, 2000, of provisions of law requiring submittal to Congress of any annual, semiannual, or other regular periodic report listed in House Document No. 103–7 (in which item 11 on page 104 identifies a reporting provision which, as subsequently amended, is contained in subsec. (l) of this section), see section 3003 of Pub. L. 104–66, as amended, set out as a note under section 1113 of Title 31, Money and Finance. STUDY OF ELDERLY AND DISABLED PUBLIC HOUSING NEEDS Pub. L. 108–186, title IV, § 402(c), Dec. 16, 2003, 117 Stat. 2694, required the Comptroller General to submit a re- port to Congress regarding the extent of severely dis- tressed elderly and disabled public housing and rec- ommendations for improving that housing not later than 18 months after Dec. 18, 2003. § 1437w. Transfer of management of certain housing to independent manager at request of residents (a) Authority The Secretary may transfer the responsibility and authority for management of specified hous- ing (as such term is defined in subsection (h)) from a public housing agency to an eligible man- agement entity, in accordance with the require- ments of this section, if— (1) a request for transfer of management of such housing is made and approved in accord- ance with subsection (b); and (2) the Secretary or the public housing agen- cy, as appropriate pursuant to subsection (b), determines that— (A) due to the mismanagement of the agency, such housing has deferred mainte- nance, physical deterioration, or obsoles- cence of major systems and other defi- ciencies in the physical plant of the project; (B) such housing is located in an area such that the housing is subject to recurrent van- dalism and criminal activity (including drug-related criminal activity); and (C) the residents can demonstrate that the elements of distress for such housing speci- fied in subparagraphs (A) and (B) can be remedied by an entity or entities, identified by the residents, that has or have a dem- onstrated capacity to manage, with reason- able expenses for modernization. (b) Request for transfer The responsibility and authority for managing specified housing may be transferred only pursu- ant to a request made by a majority vote of the residents for the specified housing that— (1) in the case of specified housing that is owned by a public housing agency that is des- ignated as a troubled agency under section 1437d(j)(2) of this title— (A) is made to the public housing agency or the Secretary; and (B) is approved by the agency or the Sec- retary; or (2) in the case of specified housing that is owned by a public housing agency that is not designated as a troubled agency under section 1437d(j)(2) of this title— (A) is made to and approved by the public housing agency; or (B) if a request is made to the agency pur- suant to subparagraph (A) and is not ap- proved, is subsequently made to and ap- proved by the Secretary. (c) Capital and operating assistance Pursuant to a contract under subsection (d), the Secretary shall require the public housing agency for specified housing to provide to the manager for the housing, from any assistance from the Capital and Operating Funds under sec- tion 1437g of this title for the agency, fair and reasonable amounts for the housing for eligible capital and operating activities under sub- section (d)(1) and (e)(1) of section 1437g of this title. The amount made available under this subsection to a manager shall be determined by the Secretary based on the share for the speci- fied housing of the aggregate amount of assist- ance from such Funds for the public housing agency transferring the housing, taking into consideration the operating and capital im- provement needs of the specified housing, the operating and capital improvement needs of the remaining public housing units managed by the public housing agency, and the public housing agency plan of such agency. (d) Contract between Secretary and manager (1) Requirements Pursuant to the approval of a request under this section for transfer of the management of