National Housing Law Project Housing Law Bulletin

House Passes H.R. 2406 to Repeal
the United States Housing Act

Highlights

New national housing policy declaration. The bill still declares that the federal government "cannot… provide for the housing of every American citizen, or even a majority of its citizens… ."³ However, because of an amendment sponsored by Representative Watt, that language is at least followed with a recommitment to the 1949 Act's goal of ensuring "that all citizens have decent and affordable housing."

HUD review of local plans. Again, as a result of an amendment sponsored by Representative Watt and other changes in the Manager's Amendment, the bill now grants HUD more authority to review and disapprove of plans developed by public housing authorities (PHAs).⁴ The bill, as originally introduced would have allowed HUD to reject a plan only if it were incomplete or based on information that is challenged in a substantial manner by evidence available to HUD. With the amendments, HUD will be able to reject a plan if it does not comply with federal law or if it proposes activities that are plainly inappropriate, given local needs.

Income targeting. With amendments, added first during mark-up and improved by an amendment sponsored by Representative Kennedy on the floor, the bill would target 35 percent of the public housing units that are made available to applicants with incomes below 30 percent of the area median and 40 percent of the tenant-based assistance to similar applicants.⁵

Preferences. The bill would repeal the federal preferences⁶ for public housing and certificates and vouchers.

Criminal records. The bill would still grant PHAs access to applicants' and tenants' criminal records, but at least the Manager's Amendment did add some protections that had been missing when the bill was introduced.⁷ The records would be confined to convictions of adults or people tried as adults, and the applicant or tenant would have to be provided a copy of the record and given a chance to dispute its accuracy and relevance before it could be used. There would be a provision requiring that the records be maintained in confidence and giving an adversely affected person a cause of action if the records were misused.

The Brooke Amendment and rent. The bill as introduced would have repealed the Brooke Amendment, which limits rents in most cases to 30 percent of a household's adjusted income, and would have granted PHAs almost unbridled authority to decide what the tenants' rents should be.⁸ Because of strong opposition from tenants, the Manager's Amendment cut back on the repeal, saving the Brooke Amendment for tenants with incomes under 30 percent of the area median and for seniors and people with disabilities who reside in public or assisted housing when the bill is enacted. A floor amendment sponsored by Representative Hinchey extended that protection to all elderly or disabled families, including those who move in after enactment. By a very close vote, 196-222, including 17 Republicans voting in favor, the House rejected an amendment sponsored by Representatives Frank and Gutierrez that would have saved the Brooke Amendment cap for all tenants.

The Manager's Amendment made some modifications to the minimum rent provision. A PHA's minimum rent could not be less than $25 nor more than $50, but the PHA may grant waivers in cases of severe financial hardship, including cases where a person is awaiting an SSI determination or where the minimum rent would cause an eviction.⁹

Time limits. The Manager's Amendment added an entirely new section setting time limits for occupancy in public housing and receipt of housing assistance. Instead of "two years and you're out," this provision would require the tenants to sign a contract with the PHA that would set a graduation date, i.e., a move-out date for the tenant, and a plan for the tenant achieving enough economic self-sufficiency to make graduation from housing assistance possible. The provision would apply only to adults who have minors living in their care.

Tenant participation. On tenant participation, the Manager's Amendment did expand the activities eligible for funding under the resident opportunity program beyond resident management. Any "economic uplift" activity program could be funded.

The provision that requires at least one member of the PHA board to be an elected public housing resident or voucher participant was retained.¹⁰ However, a floor amendment sponsored by Representative Fields to increase resident membership to 25 percent of the board was rejected. Another Fields amendment to establish advisory committees including 60 percent tenant membership to review and suggest revisions to the PHAs' local plans was likewise rejected.

Conversion to vouchers. The provision requiring conversion to vouchers of public housing buildings that are substantially vacant or distressed was retained, but the requirement that the operating and modernization costs would have to exceed voucher costs was loosened, and the requirement that the market have a sufficient supply of housing for voucher holders was eliminated.

The Manager's Amendment added a new program under which a PHA could voluntarily convert projects to vouchers, as long as vouchers would not be more expensive for HUD than public housing. Another provision would allow Section 8 owners and Section 236 landlords to take up to 40 percent of their units off their Section 8 and Section 236 contracts as tenants voluntarily move out and convert them into vouchers as well.

Portability of tenant-based assistance. The Manager's Amendment restored tenants' portability rights which the bill, as introduced, would have prohibited.¹¹

Moving-to-work demonstration program. One of the biggest additions made by the Manager's Amendment is a moving-to-work demonstration program.¹² Modeled on a demonstration authorized by the HUD FY 1996 Appropriations Act for 30 PHAs, this provision would require HUD to run a demonstration with 300 PHAs (100 per year for the next three years) to determine how to combine funds for public housing and tenant-based assistance to promote financial self-sufficiency. The New York City Housing Authority would have to participate. A PHA could propose any terms and conditions for the demonstration, notwithstanding any provision of the Act. Participating PHAs would have to have Public Housing Management Assessment Program (PHMAP) scores of at least 90 to qualify.

Occupancy standards. Another provision added by the Manager's Amendment without any hearings is a bar against HUD's establishing a national standard for the number of people who may occupy a unit. The provision arises from some apartment owners' outrage at HUD policies used to determine whether a landlord unreasonably limiting the number of people who can live in a unit and thus is discriminating against families with children. The provision would make state occupancy standards presumptively reasonable and do the same for any landlord's two-person-per-bedroom standard.

Next Step

The next step in this process is a conference with the Senate, which has already passed its 1996 authorizing bill, S. 1260. That should occur later this month. The results of the conference and significant changes to the bill's ultimate version will be reported on when the conference is completed.

1. 142 CONG. REC.. H4559-H4643 (May 8, 1996) and H4662-H4753 (May 9, 1996).
2. See H.R. 2406 Calls for Repeal of the 1937 Housing Act, 25 HOUS. L. BULL. 165 (Oct. 1995); Both House and Senate Banking Committees Emphasize PHA Deregulation and Reduced Tenant Protections in Authorizing Legislation, 25 HOUS. L. BULL. 202 (Dec. 1995).
3. H.R. 2406, § 2(2).
4. Id. § 108.
5. Id. §§ 222(c) and 321(b).
6. 42 U.S.C.A. §§ 1437d(c)(4)(A) and 1437f(d)(1)(A) (West 1994).
7. H.R. 2406, § 224(b), as introduced; H.R. 2406, § 514, as passed.
8. Id. §§ 225 and 322, as introduced.
9. Id. at §§ 225(b) and 322(b). For more information on minimum rents, see Minimum Rents: Issues and New Developments elsewhere in this issue.
10. Id. § 103(b)(2).
11. Compare H.R. 2406, § 321(d), as introduced, with § 321(d), as passed.
12. H.R. 2406, § 513.