National Housing Law Project Public Housing

Appendix 9

Sec.508(b) of the Quality Housing and Work Responsibility Act of 1998, Title V of Department of Veterans Affairs, Housing and Urban  Development and Independent Agencies Appropriations Act, Fiscal 1999, P.L. 105-276 (Oct. 21, 1998).

[[Page 112 STAT. 2527]]

(b) Disallowance of Earned Income From Public Housing Rent Determinations.--

(1) In general.--Section 3 of the United States Housing Act of 1937 (42 U.S.C. 1437a) is amended--

(A) by striking the undesignated paragraph that follows subsection (c)(3) (as added by section 515(b) of the Cranston-Gonzalez National Affordable Housing Act (Public Law 101-625; 104 Stat. 4199)); and
(B) by adding at the end the following new subsections:

``(d) Disallowance of Earned Income From Rent Determinations.--

``(1) In general.--Notwithstanding any other provision of law, the rent payable under subsection (a) by a family described in paragraph (3) of this subsection may not be increased as a result of the increased income due to such employment during the 12-month period beginning on the date on which the employment is commenced.

``(2) Phase-in of rent increases.--Upon the expiration of the 12-month period referred to in paragraph (1), the rent payable by a family described in paragraph (3) may be increased due to the continued employment of the family member described in paragraph (3)(B), except that during the 12-month period beginning upon such expiration the amount of the increase may not be greater than 50 percent of the amount of the total rent increase that would be applicable but for this paragraph.
  
``(3) Eligible families.--A family described in this paragraph is a family--

``(A) that–

[[Page 112 STAT. 2528]]

``(i) occupies a dwelling unit in a public housing project; or
``(ii) receives assistance under section 8; and
``(B)(i) whose income increases as a result of  employment of a member of the family who was previously  unemployed for 1 or more years;
``(ii) whose earned income increases during the participation of a family member in any family self-sufficiency or other job training program; or
``(iii) who is or was, within 6 months, assisted under any State program for temporary assistance for needy families funded under part A of title IV of the Social Security Act and whose earned income increases.

``(4) Applicability.--This subsection and subsection (e) shall apply beginning upon October 1, 1999, except that this subsection and subsection (e) shall apply with respect to any family described in paragraph 3(A)(ii) only to the extent provided in advance in appropriations Acts.

``(e) Individual Savings Accounts.--
``(1) In general.--In lieu of a disallowance of earned income under subsection (d), upon the request of a family that qualifies under subsection (d), a public housing agency may establish an individual savings account in accordance with this subsection for that family.

``(2) Deposits to account.--The public housing agency shall deposit in any savings account established under this subsection an amount equal to the total amount that otherwise would be applied to the family's rent payment under subsection (a) as a result of employment.

``(3) Withdrawal from account.--Amounts deposited in a savings account established under this subsection may only be withdrawn by the family for the purpose of--
``(A) purchasing a home;
``(B) paying education costs of family members;
``(C) moving out of public or assisted housing; or
``(D) paying any other expense authorized by the public housing agency for the purpose of promoting the economic self-sufficiency of residents of public and assisted housing.''.