National Housing Law Project Housing Law Bulletin

Limited Housing Authorization Bill Adopted

The principal components of the bill relate to Section 8 Moderate Rehabilitation contract renewals for a one-year term, reauthorization of the Section 515 rural rental multifamily housing program, and expedited eviction grievance procedures for public and assisted housing tenants who have a pattern of drug or alcohol abuse. Specific provision is made to accelerate evictions of such persons from housing designated for use by elderly or disabled persons. The measure includes a number of provisions adopted by the House last fall in H.R. 117, the Senior Citizens Health and Safety Act.³

A description of several provisions with the greatest implications for low-income residents follows.

1. HUD is authorized to renew Section 8 project-based Moderate Rehabilitation rental assistance contracts for one-year terms.⁴ In addition, HUD is given discretion⁵ to implement reforms to the preservation program adopted in the vetoed Fiscal Year 1996 HUD appropriations bill.⁶

2. The bill would make easier eviction of public and assisted housing tenants with a pattern of drug or alcohol abuse by requiring that public housing authorities (PHAs) adopt occupancy standards and an expedited grievance procedure to address such populations.⁷

The bill revises the current expedited grievance procedure by eliminating the requirement that evictions be restricted to criminal activity, and by extending its reach even to conduct "off" the premises. In addition, a new section is added to permit PHAs to secure from law enforcement authorities the criminal conviction records of adult applicants and tenants.⁸ Juvenile records may be disclosed only as authorized by state or local law. Tenants and applicants must receive a copy of their criminal record and have an opportunity to challenge the accuracy or relevance prior to any adverse action. Eviction for drug-related criminal activity shall serve as a three-year bar from receiving federal housing assistance, commencing on the date of eviction and absent successful completion of an "approved" rehabilitation program.⁹

PHAs are required to adopt occupancy standards that bar from public or assisted housing any applicants or current tenants determined by the PHA to be illegally using a controlled substance or where the PHA has "reasonable cause to believe" illegal use of a controlled substance or alcohol may interfere with the other residents' peaceful enjoyment of their units. The bill would permit PHAs to factor successful completion of a supervised rehabilitation program into their decision to deny occupancy or assistance.¹⁰

3. In addition to these changes with general applicability to the public and assisted housing programs, the bill would also make extensive changes in the area of housing designated for the elderly and disabled.¹¹ These amendments would permit restricted occupancy to "the types of families for whom a project is designated" in the case of projects designated for use (1) only by elderly families, (2) only by disabled families, or (3) by elderly and disabled families. Designation of a project to one of these uses may not result in the forced displacement of a lawfully residing tenant.

If a PHA designates a project or part of a project as elderly-only or disabled-only, it must provide current residents who agree to relocation with notice of the designation and relocation benefits; "access to comparable housing," which may include Section 8 at comparable rents; as well as moving expenses.¹² PHAs are required to submit plans to HUD that justify the designation based on the locality's housing goals, as set out in its Comprehensive Housing Affordability Strategy, and the low-income housing needs of the jurisdiction. The bill sets out a framework for treatment by HUD of noncomplying designation plans. The Uniform Relocation Assistance and Real Property Acquisitions Policy Act¹³ is made inapplicable to tenants relocated as result of a change in their project's designation. Funding is authorized to permit the implementation of plans for designated housing that are approved by the Secretary during FY 1996.

4. The bill contains generous authorizations from FY 1996 appropriations for self-help housing programs, including $25 million for Habitat for Humanity.¹⁴

1. 142 CONG. REC. S350-53 (Jan. 24, 1996).
2. 142 CONG. REC. S1900-03 (Mar. 12, 1996).
3. 141 CONG. REC. H10649 (passed the House Oct. 24, 1995); see Proposed New Restrictions on Occupancy in Designated Housing and Changes in Public and Section 8 Housing Lease Termination and Expedited Grievance Procedure, 25 HOUS. L. BULL. 184 (Nov. 1995).
4. S. 1494, § 2(a), 142 CONG. REC. S1900 (Mar. 12, 1996).
5. Id. § 2(b).
6. H.R. 2099, 1996 HUD appropriations bill, vetoed December 18, 1995.
7. S. 1494, § 9, amending Section 6 of the United States Housing Act of 1937, 24 C.F.R. Part 966.
8. S. 1494, § 9(b), 142 CONG. REC. S1901 (Mar. 12, 1996).
9. Id. § 9(c), 142 CONG. REC. S1901 (Mar. 12, 1996).
10. Id. § 9(e), 142 CONG. REC. S1901 (Mar. 12, 1996).
11. Id. § 10, amending Section 7 of the United States Housing Act of 1937. See, e.g., 24 C.F.R. §§ 880.612a and 945 (1995).
12. S. 1494, § 10(a), 142 CONG. REC. S1902 (Mar. 12, 1996), amending Section 7(c) of the United States Housing Act of 1937.
13. 42 U.S.C.A. §§ 4601 et seq. (West 1994).
14. S. 1494, § 12, 142 CONG. REC. S1903 (Mar. 12, 1996). Habitat for Humanity enjoys the support of Speaker Gingrich, as evidenced by his participation in the House Banking Committee's mark-up of H.R. 117, supra note 3, on October 12, 1995.