42 U.S.C. § 1437j — Labor standards and community service

Page 4662 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437h demonstrate opportunities for energy cost reduction through energy services contracts, and to report find- ings and recommendations to Congress as soon as prac- ticable after expiration of 1-year period beginning on Nov. 28, 1990, was repealed by Pub. L. 105–276, title V, § 582(a)(11), Oct. 21, 1998, 112 Stat. 2644. § 1437h. Implementation of provisions by Sec- retary (a) Preparation and submission of annual budget program; maintenance of accounts; audit by Government Accountability Office In the performance of, and with respect to, the functions, powers, and duties vested in him by this chapter, the Secretary, notwithstanding the provisions of any other law, shall— (1) prepare annually and submit a budget program as provided for wholly owned Govern- ment corporations by chapter 91 of title 31; and (2) maintain an integral set of accounts which may be audited by the Government Ac- countability Office as provided by chapter 91 of title 31. (b) Availability of receipts and assets All receipts and assets of the Secretary under this chapter shall be available for the purposes of this chapter until expended. (c) Federal Reserve banks to act as depositories, custodians and fiscal agents; reimbursement for services The Federal Reserve banks are authorized and directed to act as depositories, custodians, and fiscal agents for the Secretary in the general ex- ercise of his powers under this chapter, and the Secretary may reimburse any such bank for its services in such manner as may be agreed upon. (Sept. 1, 1937, ch. 896, title I, § 10, as added Pub. L. 93–383, title II, § 201(a), Aug. 22, 1974, 88 Stat. 666; amended Pub. L. 98–479, title II, § 203(b)(2), Oct. 17, 1984, 98 Stat. 2229; renumbered title I, Pub. L. 100–358, § 5, June 29, 1988, 102 Stat. 681; Pub. L. 104–316, title I, § 122(k), Oct. 19, 1996, 110 Stat. 3837; Pub. L. 108–271, § 8(b), July 7, 2004, 118 Stat. 814.) Editorial Notes PRIOR PROVISIONS A prior section 10 of act Sept. 1, 1937, ch. 896, 50 Stat. 891, as amended, authorized annual contributions in as- sistance of low rentals for housing projects and was classified to section 1410 of this title, prior to the gen- eral revision of this chapter by Pub. L. 93–383. Similar provisions are contained in section 1437c of this title. AMENDMENTS 2004—Subsec. (a)(2). Pub. L. 108–271 substituted ‘‘Gov- ernment Accountability Office’’ for ‘‘General Account- ing Office’’. 1996—Subsec. (a)(2). Pub. L. 104–316 substituted ‘‘maintain an integral set of accounts which may be au- dited by the General Accounting Office as provided by chapter 91 of title 31.’’ for ‘‘maintain an integral set of accounts which shall be audited annually by the Gen- eral Accounting Office in accordance with the prin- ciples and procedures applicable to commercial trans- actions as provided by chapter 91 of title 31, and no other audit shall be required.’’ 1984—Subsec. (a)(1), (2). Pub. L. 98–479 substituted ‘‘chapter 91 of title 31’’ for ‘‘the Government Corpora- tions Control Act, as amended’’. § 1437i. Obligations of public housing agencies; contestability; full faith and credit of United States pledged as security; tax exemption (a) Obligations issued by a public housing agency in connection with low-income housing projects which (1) are secured (A) by a pledge of a loan under any agreement between such public housing agency and the Secretary, or (B) by a pledge of annual contributions under an annual contributions contract between such public housing agency and the Secretary, or (C) by a pledge of both annual contributions under an an- nual contributions contract and a loan under an agreement between such public housing agency and the Secretary, and (2) bear, or are accom- panied by, a certificate of the Secretary that such obligations are so secured, shall be incon- testable in the hands of a bearer and the full faith and credit of the United States is pledged to the payment of all amounts agreed to be paid by the Secretary as security for such obliga- tions. (b) Except as provided in section 1437c(g) of this title, obligations, including interest there- on, issued by public housing agencies in connec- tion with low-income housing projects shall be exempt from all taxation now or hereafter im- posed by the United States whether paid by such agencies or by the Secretary. The income de- rived by such agencies from such projects shall be exempt from all taxation now or hereafter imposed by the United States. (Sept. 1, 1937, ch. 896, title I, § 11, as added Pub. L. 93–383, title II, § 201(a), Aug. 22, 1974, 88 Stat. 667; amended Pub. L. 97–35, title III, § 322(c), Aug. 13, 1981, 95 Stat. 402; renumbered title I, Pub. L. 100–358, § 5, June 29, 1988, 102 Stat. 681; Pub. L. 101–625, title V, § 572(2), Nov. 28, 1990, 104 Stat. 4236.) Editorial Notes PRIOR PROVISIONS A prior section 11 of act Sept. 1, 1937, ch. 896, 50 Stat. 893, as amended, authorized capital grants to public housing agencies in assistance of low rentals and was classified to section 1411 of this title, prior to the gen- eral revision of this chapter by Pub. L. 93–383. AMENDMENTS 1990—Pub. L. 101–625 substituted ‘‘low-income hous- ing’’ for ‘‘lower income housing’’ wherever appearing. 1981—Pub. L. 97–35 substituted reference to lower in- come for reference to low-income wherever appearing. Statutory Notes and Related Subsidiaries 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. § 1437j. Labor standards and community service requirement (a) Payment of wages prevailing in locality Any contract for loans, contributions, sale, or lease pursuant to this chapter shall contain a provision requiring that not less than the wages prevailing in the locality, as determined or adopted (subsequent to a determination under applicable State or local law) by the Secretary, Page 4663 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437j 1 So in original. Probably should be only one closing paren- thesis. 2 See References in Text note below. shall be paid to all architects, technical engi- neers, draftsmen, and technicians employed in the development, and all maintenance laborers and mechanics employed in the operation, of the low-income housing project involved; and shall also contain a provision that not less than the wages prevailing in the locality, as predeter- mined by the Secretary of Labor pursuant to sections 3141–3144, 3146, and 3147 of title 40, shall be paid to all laborers and mechanics employed in the development of the project involved (in- cluding a project with nine or more units as- sisted under section 1437f of this title, where the public housing agency or the Secretary and the builder or sponsor enter into agreement for such use before construction or rehabilitation is com- menced), and the Secretary shall require certifi- cation as to compliance with the provisions of this section prior to making any payment under such contract. (b) Exception for volunteers Subsection (a) and the provisions relating to wages (pursuant to subsection (a)) in any con- tract for loans, annual contributions, sale, or lease pursuant to this chapter, shall not apply to any individual that— (1) performs services for which the indi- vidual volunteered; (2)(A) does not receive compensation for such services; or (B) is paid expenses, reasonable benefits, or a nominal fee for such services; and (3) is not otherwise employed at any time in the construction work. (c) Community service requirement (1) In general Except as provided in paragraph (2) and not- withstanding any other provision of law, each adult resident of a public housing project shall— (A) contribute 8 hours per month of com- munity service (not including political ac- tivities) within the community in which that adult resides; or (B) participate in an economic self-suffi- ciency program (as that term is defined in subsection (g)) for 8 hours per month. (2) Exemptions The Secretary shall provide an exemption from the applicability of paragraph (1) for any individual who— (A) is 62 years of age or older; (B) is a blind or disabled individual, as de- fined under section 216(i)(1) or 1614 of the So- cial Security Act (42 U.S.C. 416(i)(1); 1382c), and who is unable to comply with this sec- tion, or is a primary caretaker of such indi- vidual; (C) is engaged in a work activity (as such term is defined in section 407(d) of the Social Security Act (42 U.S.C. 607(d)), as in effect on and after July 1, 1997)); 1 (D) meets the requirements for being ex- empted from having to engage in a work ac- tivity under the State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) or under any other wel- fare program of the State in which the pub- lic housing agency is located, including a State-administered welfare-to-work pro- gram; or (E) is in a family receiving assistance under a State program funded under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.) or under any other welfare program of the State in which the public housing agency is located, including a State- administered welfare-to-work program, and has not been found by the State or other ad- ministering entity to be in noncompliance with such program. (3) Annual determinations (A) Requirement For each public housing resident subject to the requirement under paragraph (1), the public housing agency shall, 30 days before the expiration of each lease term of the resi- dent under section 1437d(l)(1) of this title, re- view and determine the compliance of the resident with the requirement under para- graph (1) of this subsection. (B) Due process Such determinations shall be made in ac- cordance with the principles of due process and on a nondiscriminatory basis. (C) Noncompliance If an agency determines that a resident subject to the requirement under paragraph (1) has not complied with the requirement, the agency— (i) shall notify the resident— (I) of such noncompliance; (II) that the determination of non- compliance is subject to the administra- tive grievance procedure under sub- section (k); 2 and (III) that, unless the resident enters into an agreement under clause (ii) of this subparagraph, the resident’s lease will not be renewed; and (ii) may not renew or extend the resi- dent’s lease upon expiration of the lease term and shall take such action as is nec- essary to terminate the tenancy of the household, unless the agency enters into an agreement, before the expiration of the lease term, with the resident providing for the resident to cure any noncompliance with the requirement under paragraph (1), by participating in an economic self-suffi- ciency program for or contributing to community service as many additional hours as the resident needs to comply in the aggregate with such requirement over the 12-month term of the lease. (4) Ineligibility for occupancy for noncompli- ance A public housing agency may not renew or extend any lease, or provide any new lease, for a dwelling unit in public housing for any household that includes an adult member who Page 4664 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437j was subject to the requirement under para- graph (1) and failed to comply with the re- quirement. (5) Inclusion in plan Each public housing agency shall include in its public housing agency plan a detailed de- scription of the manner in which the agency intends to implement and administer this sub- section. (6) Geographic location The requirement under paragraph (1) may include community service or participation in an economic self-sufficiency program per- formed at a location not owned by the public housing agency. (7) Prohibition against replacement of employ- ees In carrying out this subsection, a public housing agency may not— (A) substitute community service or par- ticipation in an economic self-sufficiency program, as described in paragraph (1), for work performed by a public housing em- ployee; or (B) supplant a job at any location at which community work requirements are fulfilled. (8) Third-party coordinating A public housing agency may administer the community service requirement under this subsection directly, through a resident organi- zation, or through a contractor having experi- ence in administering volunteer-based commu- nity service programs within the service area of the public housing agency. The Secretary may establish qualifications for such organiza- tions and contractors. (d) Treatment of income changes resulting from welfare program requirements (1) Covered family For purposes of this subsection, the term ‘‘covered family’’ means a family that (A) re- ceives benefits for welfare or public assistance from a State or other public agency under a program for which the Federal, State, or local law relating to the program requires, as a con- dition of eligibility for assistance under the program, participation of a member of the family in an economic self-sufficiency pro- gram, and (B) resides in a public housing dwelling unit or is provided tenant-based as- sistance under section 1437f of this title. (2) Decreases in income for failure to comply (A) In general Notwithstanding the provisions of section 1437a(a) of this title (relating to family rent- al contributions) or paragraph (4) or (5) of section 1437a(b) of this title (relating to defi- nition of income and adjusted income), if the welfare or public assistance benefits of a covered family are reduced under a Federal, State, or local law regarding such an assist- ance program because of any failure of any member of the family to comply with the conditions under the assistance program re- quiring participation in an economic self- sufficiency program or imposing a work ac- tivities requirement, the amount required to be paid by the family as a monthly contribu- tion toward rent may not be decreased, dur- ing the period of the reduction, as a result of any decrease in the income of the family (to the extent that the decrease in income is a result of the benefits reduction). (B) No reduction based on time limit for as- sistance For purposes of this paragraph, a reduc- tion in benefits as a result of the expiration of a lifetime time limit for a family receiv- ing welfare or public assistance benefits shall not be considered to be a failure to comply with the conditions under the assist- ance program requiring participation in an economic self-sufficiency program or impos- ing a work activities requirement. This paragraph shall apply beginning on October 21, 1998. (3) Effect of fraud Notwithstanding the provisions of section 1437a(a) of this title (relating to family rental contributions) or paragraph (4) or (5) of sec- tion 1437a(b) of this title (relating to defini- tion of income and adjusted income), if the welfare or public assistance benefits of a cov- ered family are reduced because of an act of fraud by a member of the family under the law or program, the amount required to be paid by the covered family as a monthly contribution toward rent may not be decreased, during the period of the reduction, as a result of any de- crease in the income of the family (to the ex- tent that the decrease in income is a result of the benefits reduction). This paragraph shall apply beginning on October 21, 1998. (4) Notice Paragraphs (2) and (3) shall not apply to any covered family before the public housing agen- cy providing assistance under this chapter on behalf of the family obtains written notifica- tion from the relevant welfare or public assist- ance agency specifying that the family’s bene- fits have been reduced because of noncompli- ance with economic self-sufficiency program or work activities requirements or fraud, and the level of such reduction. (5) Occupancy rights This subsection may not be construed to au- thorize any public housing agency to establish any time limit on tenancy in a public housing dwelling unit or on receipt of tenant-based as- sistance under section 1437f of this title. (6) Review Any covered family residing in public hous- ing that is affected by the operation of this subsection shall have the right to review the determination under this subsection through the administrative grievance procedure estab- lished pursuant to section 1437d(k) of this title for the public housing agency. (7) Cooperation agreements for economic self- sufficiency activities (A) Requirement A public housing agency providing public housing dwelling units or tenant-based as- Page 4665 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437j sistance under section 1437f of this title for covered families shall make its best efforts to enter into such cooperation agreements, with State, local, and other agencies pro- viding assistance to covered families under welfare or public assistance programs, as may be necessary, to provide for such agen- cies to transfer information to facilitate ad- ministration of subsection (c) and para- graphs (2), (3), and (4) of this subsection and other information regarding rents, income, and assistance that may assist a public housing agency or welfare or public assist- ance agency in carrying out its functions. (B) Contents A public housing agency shall seek to in- clude in a cooperation agreement under this paragraph requirements and provisions de- signed to target assistance under welfare and public assistance programs to families residing in public housing projects and fami- lies receiving tenant-based assistance under section 1437f of this title, which may include providing for economic self-sufficiency serv- ices within such housing, providing for serv- ices designed to meet the unique employ- ment-related needs of residents of such hous- ing and recipients of such assistance, pro- viding for placement of workfare positions on-site in such housing, and such other ele- ments as may be appropriate. (C) Confidentiality This paragraph may not be construed to authorize any release of information prohib- ited by, or in contravention of, any other provision of Federal, State, or local law. (e) Lease provisions A public housing agency shall incorporate into leases under section 1437d(l) of this title and into agreements for the provision of tenant-based as- sistance under section 1437f of this title, provi- sions incorporating the conditions under sub- section (d). (f) Treatment of income Notwithstanding any other provision of this section, in determining the income of a family who resides in public housing or receives tenant- based assistance under section 1437f of this title, a public housing agency shall consider any de- crease in the income of a family that results from the reduction of any welfare or public as- sistance benefits received by the family under any Federal, State, or local law regarding a pro- gram for such assistance if the family (or a member thereof, as applicable) has complied with the conditions for receiving such assistance and is unable to obtain employment notwith- standing such compliance. (g) Definition For purposes of this section, the term ‘‘eco- nomic self-sufficiency program’’ means any pro- gram designed to encourage, assist, train, or fa- cilitate the economic independence of partici- pants and their families or to provide work for participants, including programs for job train- ing, employment counseling, work placement, basic skills training, education, workfare, finan- cial or household management, apprenticeship, or other activities as the Secretary may pro- vide. (Sept. 1, 1937, ch. 896, title I, § 12, as added Pub. L. 93–383, title II, § 201(a), Aug. 22, 1974, 88 Stat. 667; amended Pub. L. 97–35, title III, § 322(c), Aug. 13, 1981, 95 Stat. 402; Pub. L. 100–242, title I, § 112(b)(5), Feb. 5, 1988, 101 Stat. 1824; renumbered title I, Pub. L. 100–358, § 5, June 29, 1988, 102 Stat. 681; Pub. L. 101–625, title V, § 572(2), title IX, § 955(b), Nov. 28, 1990, 104 Stat. 4236, 4421; Pub. L. 105–276, title V, § 512(a), Oct. 21, 1998, 112 Stat. 2539.) Editorial Notes REFERENCES IN TEXT The Social Security Act, referred to in subsec. (c)(2)(D), (E), is act Aug. 14, 1935, ch. 531, 49 Stat. 620. Part A of title IV of the Act is classified generally to part A (§ 601 et seq.) of subchapter IV of chapter 7 of this title. For complete classification of this Act to the Code, see section 1305 of this title and Tables. Subsection (k), referred to in subsec. (c)(3)(C)(i)(II), probably means section 1437d(k) of this title, which re- lates to administrative grievance procedures. This sec- tion does not contain a subsec. (k). CODIFICATION In subsec. (a), ‘‘sections 3141–3144, 3146, and 3147 of title 40’’ substituted for ‘‘the Davis-Bacon Act (49 Stat. 1011)’’ on authority of Pub. L. 107–217, § 5(c), Aug. 21, 2002, 116 Stat. 1303, the first section of which enacted Title 40, Public Buildings, Property, and Works. PRIOR PROVISIONS A prior section 12 of act Sept. 1, 1937, ch. 896, 50 Stat. 894, as amended, authorized the disposal of low-rent housing projects transferred to or acquired by the Au- thority and was classified to section 1412 of this title, prior to the general revision of this chapter by Pub. L. 93–383. AMENDMENTS 1998—Pub. L. 105–276, § 512(a)(1), inserted ‘‘and com- munity service requirement’’ after ‘‘Labor standards’’ in section catchline. Subsecs. (c) to (g). Pub. L. 105–276, § 512(a)(2), added subsecs. (c) to (g). 1990—Pub. L. 101–625, § 955(b), designated existing pro- visions as subsec. (a) and added subsec. (b). Pub. L. 101–625, § 572(2), substituted ‘‘low-income housing’’ for ‘‘lower income housing’’. 1988—Pub. L. 100–242 struck out ‘‘annual’’ before ‘‘contributions’’. 1981—Pub. L. 97–35 substituted reference to lower in- come for reference to low-income. 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. EFFECTIVE DATE OF 1990 AMENDMENT Section 955(d) of Pub. L. 101–625 provided that: ‘‘The amendments made by this section [amending this sec- tion, section 5310 of this title, and section 1701q of Title 12, Banks and Banking] shall apply to any volunteer services provided before, on, or after the date of the en- actment of this Act [Nov. 28, 1990], except that such amendments may not be construed to require the re- Page 4666 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437j–1 payment of any wages paid before the date of the enact- ment of this Act for services provided before such date.’’ 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. § 1437j–1. Repealed. Pub. L. 105–276, title V, § 582(a)(5), Oct. 21, 1998, 112 Stat. 2643 Section, Pub. L. 97–35, title III, § 329A, Aug. 13, 1981, 95 Stat. 409, related to payment for development man- agers of projects assisted under this chapter. Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF REPEAL Repeal effective and applicable beginning upon Oct. 1, 1999, except as otherwise provided, with provision that Secretary may implement the repeal before such date, and with savings provision, see section 503 of Pub. L. 105–276, set out as an Effective Date of 1998 Amendment note under section 1437 of this title. § 1437k. Consortia, joint ventures, affiliates, and subsidiaries of public housing agencies (a) Consortia (1) In general Any 2 or more public housing agencies may participate in a consortium for the purpose of administering any or all of the housing pro- grams of those public housing agencies in ac- cordance with this section. (2) Effect With respect to any consortium described in paragraph (1)— (A) any assistance made available under this subchapter to each of the public housing agencies participating in the consortium shall be paid to the consortium; and (B) all planning and reporting require- ments imposed upon each public housing agency participating in the consortium with respect to the programs operated by the con- sortium shall be consolidated. (3) Restrictions (A) Agreement Each consortium described in paragraph (1) shall be formed and operated in accord- ance with a consortium agreement, and shall be subject to the requirements of a joint public housing agency plan, which shall be submitted by the consortium in accordance with section 1437c–1 of this title. (B) Minimum requirements The Secretary shall specify minimum re- quirements relating to the formation and operation of consortia and the minimum contents of consortium agreements under this paragraph. (b) Joint ventures (1) In general Notwithstanding any other provision of law, a public housing agency, in accordance with the public housing agency plan, may— (A) form and operate wholly owned or con- trolled subsidiaries (which may be nonprofit corporations) and other affiliates, any of which may be directed, managed, or con- trolled by the same persons who constitute the board of directors or similar governing body of the public housing agency, or who serve as employees or staff of the public housing agency; or (B) enter into joint ventures, partnerships, or other business arrangements with, or con- tract with, any person, organization, entity, or governmental unit— (i) with respect to the administration of the programs of the public housing agency, including any program that is subject to this subchapter; or (ii) for the purpose of providing or ar- ranging for the provision of supportive or social services. (2) Use and treatment of income Any income generated under paragraph (1)— (A) shall be used for low-income housing or to benefit the residents assisted by the pub- lic housing agency; and (B) shall not result in any decrease in any amount provided to the public housing agen- cy under this subchapter, except as other- wise provided under the formulas established under section 1437g(d)(2) and 1437g(e)(2) of this title. (3) Audits The Comptroller General of the United States, the Secretary, or the Inspector Gen- eral of the Department of Housing and Urban Development may conduct an audit of any ac- tivity undertaken under paragraph (1) at any time. (Sept. 1, 1937, ch. 896, title I, § 13, as added Pub. L. 96–153, title II, § 209, Dec. 21, 1979, 93 Stat. 1109; amended Pub. L. 96–399, title II, § 202(b), Oct. 8, 1980, 94 Stat. 1629; renumbered title I, Pub. L. 100–358, § 5, June 29, 1988, 102 Stat. 681; Pub. L. 105–276, title V, § 515, Oct. 21, 1998, 112 Stat. 2549.) Editorial Notes PRIOR PROVISIONS A prior section 13 of act Sept. 1, 1937, ch. 896, 50 Stat. 894, as amended, enumerated powers of the Authority and was classified to section 1413 of this title, prior to the general revision of this chapter by Pub. L. 93–383. AMENDMENTS 1998—Pub. L. 105–276 amended section catchline and text of section generally. Prior to amendment, text read as follows: ‘‘The Secretary shall, to the maximum extent practicable, require that newly constructed and substantially rehabilitated projects assisted under this chapter with authority provided on or after October 1, 1979, shall be equipped with heating and cooling sys- tems selected on the basis of criteria which include a life-cycle cost analysis of such systems.’’ 1980—Pub. L. 96–399 struck out subsec. (a) which re- lated to consideration by the Secretary, in utilizing contract authority, of projects which will be modern- ized to a substantial extent with weatherization mate- rials as defined in section 6862(9) of this title, and redes- ignated former subsec. (b) as entire section. 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-