42 U.S.C. § 1437g : US Code - Section 1437G: Public housing Capital and Operating Funds

Search 42 U.S.C. § 1437g : US Code - Section 1437G: Public housing Capital and Operating Funds

(a) Merger into Capital Fund
Except as otherwise provided in the Quality Housing and Work
Responsibility Act of 1998, any assistance made available for
public housing under section 1437l of this title before October 1,
1999, shall be merged into the Capital Fund established under
subsection (d) of this section.
(b) Merger into Operating Fund
Except as otherwise provided in the Quality Housing and Work
Responsibility Act of 1998, any assistance made available for
public housing under this section before October 1, 1999, shall be
merged into the Operating Fund established under subsection (e) of
this section.
(c) Allocation amount
(1) In general
For fiscal year 2000 and each fiscal year thereafter, the
Secretary shall allocate amounts in the Capital Fund and
Operating Funds (!1) for assistance for public housing agencies
eligible for such assistance. The Secretary shall determine the
amount of the allocation for each eligible agency, which shall
be, for any fiscal year beginning after the effective date of the
formulas described in subsections (d)(2) and (e)(2) of this
section -
(A) for assistance from the Capital Fund, the amount
determined for the agency under the formula under subsection
(d)(2) of this section; and
(B) for assistance from the Operating Fund, the amount
determined for the agency under the formula under subsection
(e)(2) of this section.
(2) Funding
There are authorized to be appropriated for assistance for
public housing agencies under this section the following amounts:
(A) Capital Fund
For allocations of assistance from the Capital Fund,
$3,000,000,000 for fiscal year 1999, and such sums as may be
necessary for fiscal years 2000, 2001, 2002, and 2003.
(B) Operating Fund
For allocations of assistance from the Operating Fund,
$2,900,000,000 for fiscal year 1999, and such sums as may be
necessary for each of fiscal years 2000, 2001, 2002, and 2003.
(d) Capital Fund
(1) In general
The Secretary shall establish a Capital Fund for the purpose of
making assistance available to public housing agencies to carry
out capital and management activities, including -
(A) the development, financing, and modernization of public
housing projects, including the redesign, reconstruction, and
reconfiguration of public housing sites and buildings
(including accessibility improvements) and the development of
mixed-finance projects;
(B) vacancy reduction;
(C) addressing deferred maintenance needs and the replacement
of obsolete utility systems and dwelling equipment;
(D) planned code compliance;
(E) management improvements, including the establishment and
initial operation of computer centers in and around public
housing through a Neighborhood Networks initiative, for the
purpose of enhancing the self-sufficiency, employability, and
economic self-reliance of public housing residents by providing
them with onsite computer access and training resources;
(F) demolition and replacement;
(G) resident relocation;
(H) capital expenditures to facilitate programs to improve
the empowerment and economic self-sufficiency of public housing
residents and to improve resident participation;
(I) capital expenditures to improve the security and safety
of residents;
(J) homeownership activities, including programs under
section 1437z-4 of this title;
(K) improvement of energy and water-use efficiency by
installing fixtures and fittings that conform to the American
Society of Mechanical Engineers/American National Standards
Institute standards A112.19.2-1998 and A112.18.1-2000, or any
revision thereto, applicable at the time of installation, and
by increasing energy efficiency and water conservation by such
other means as the Secretary determines are appropriate; and
(L) integrated utility management and capital planning to
maximize energy conservation and efficiency measures.
(2) Formula
The Secretary shall develop a formula for determining the
amount of assistance provided to public housing agencies from the
Capital Fund for a fiscal year, which shall include a mechanism
to reward performance. The formula may take into account such
factors as -
(A) the number of public housing dwelling units owned,
assisted, or operated by the public housing agency, the
characteristics and locations of the projects, and the
characteristics of the families served and to be served
(including the incomes of the families);
(B) the need of the public housing agency to carry out
rehabilitation and modernization activities, replacement
housing, and reconstruction, construction, and demolition
activities related to public housing dwelling units owned,
assisted, or operated by the public housing agency, including
backlog and projected future needs of the agency;
(C) the cost of constructing and rehabilitating property in
the area;
(D) the need of the public housing agency to carry out
activities that provide a safe and secure environment in public
housing units owned, assisted, or operated by the public
housing agency;
(E) any record by the public housing agency of exemplary
performance in the operation of public housing, as indicated by
the system of performance indicators established pursuant to
section 1437d(j) of this title; and
(F) any other factors that the Secretary determines to be
appropriate.
(3) Conditions on use for development and modernization
(A) Development
Except as otherwise provided in this chapter, any public
housing developed using amounts provided under this subsection,
or under section 1437l of this title as in effect before the
effective date under section 503(a) of the Quality Housing and
Work Responsibility Act of 1998, shall be operated under the
terms and conditions applicable to public housing during the 40-
year period that begins on the date on which the project (or
stage of the project) becomes available for occupancy.
(B) Modernization
Except as otherwise provided in this chapter, any public
housing or portion thereof that is modernized using amounts
provided under this subsection or under section 1437l of this
title (as in effect before the effective date under section
503(a) of the Quality Housing and Work Responsibility Act of
1998) shall be maintained and operated under the terms and
conditions applicable to public housing during the 20-year
period that begins on the latest date on which modernization is
completed.
(C) Applicability of latest expiration date
Public housing subject to this paragraph or to any other
provision of law mandating the operation of the housing as
public housing or under the terms and conditions applicable to
public housing for a specified length of time, shall be
maintained and operated as required until the latest such
expiration date.
(e) Operating Fund
(1) In general
The Secretary shall establish an Operating Fund for the purpose
of making assistance available to public housing agencies for the
operation and management of public housing, including -
(A) procedures and systems to maintain and ensure the
efficient management and operation of public housing units
(including amounts sufficient to pay for the reasonable costs
of review by an independent auditor of the documentation or
other information maintained pursuant to section 1437d(j)(6) of
this title by a public housing agency or resident management
corporation to substantiate the performance of that agency or
corporation);
(B) activities to ensure a program of routine preventative
maintenance;
(C) anticrime and antidrug activities, including the costs of
providing adequate security for public housing residents,
including above-baseline police service agreements;
(D) activities related to the provision of services,
including service coordinators for elderly persons or persons
with disabilities;
(E) activities to provide for management and participation in
the management and policymaking of public housing by public
housing residents;
(F) the costs of insurance;
(G) the energy costs associated with public housing units,
with an emphasis on energy conservation;
(H) the costs of administering a public housing work program
under section 1437j of this title, including the costs of any
related insurance needs;
(I) the costs of repaying, together with rent contributions,
debt incurred to finance the rehabilitation and development of
public housing units, which shall be subject to such reasonable
requirements as the Secretary may establish;
(J) the costs associated with the operation and management of
mixed finance projects, to the extent appropriate; and
(K) the costs of operating computer centers in public housing
through a Neighborhood Networks initiative described in
subsection (d)(1)(E) of this section, and of activities related
to that initiative.
(2) Formula
(A) In general
The Secretary shall establish a formula for determining the
amount of assistance provided to public housing agencies from
the Operating Fund for a fiscal year. The formula may take into
account -
(i) standards for the costs of operating and reasonable
projections of income, taking into account the
characteristics and locations of the public housing projects
and characteristics of the families served and to be served
(including the incomes of the families), or the costs of
providing comparable services as determined in accordance
with criteria or a formula representing the operations of a
prototype well-managed public housing project;
(ii) the number of public housing dwelling units owned,
assisted, or operated by the public housing agency;
(iii) the number of public housing dwelling units owned,
assisted, or operated by the public housing agency that are
chronically vacant and the amount of assistance appropriate
for those units;
(iv) to the extent quantifiable, the extent to which the
public housing agency provides programs and activities
designed to promote the economic self-sufficiency and
management skills of public housing residents;
(v) the need of the public housing agency to carry out anti-
crime and anti-drug activities, including providing adequate
security for public housing residents;
(vi) the amount of public housing rental income foregone by
the public housing agency as a result of escrow savings
accounts under section 1437u(d)(2) of this title for families
participating in a family self-sufficiency program of the
agency under such section 1437u of this title; and
(vii) any other factors that the Secretary determines to be
appropriate.
(B) Incentive to increase certain rental income
The formula shall provide an incentive to encourage public
housing agencies to facilitate increases in earned income by
families in occupancy. Any such incentive shall provide that
the agency shall benefit from increases in such rental income
and that such amounts accruing to the agency pursuant to such
benefit may be used only for low-income housing or to benefit
the residents of the public housing agency.
(C) Treatment of savings
(i) In general
The treatment of utility and waste management costs under
the formula shall provide that a public housing agency shall
receive the full financial benefit from any reduction in the
cost of utilities or waste management resulting from any
contract with a third party to undertake energy conservation
improvements in one or more of its public housing projects.
(ii) Third party contracts
Contracts described in clause (i) may include contracts for
equipment conversions to less costly utility sources,
projects with resident-paid utilities, and adjustments to
frozen base year consumption, including systems repaired to
meet applicable building and safety codes and adjustments for
occupancy rates increased by rehabilitation.
(iii) Term of contract
The total term of a contract described in clause (i) shall
not exceed 20 years to allow longer payback periods for
retrofits, including windows, heating system replacements,
wall insulation, site-based generation, advanced energy
savings technologies, including renewable energy generation,
and other such retrofits.
(3) Condition on use
No portion of any public housing project operated using amounts
provided under this subsection, or under this section as in
effect before the effective date under section 503(a) of the
Quality Housing and Work Responsibility Act of 1998, may be
disposed of before the expiration of the 10-year period beginning
upon the conclusion of the fiscal year for which such amounts
were provided, except as otherwise provided in this chapter.
(f) Negotiated rulemaking procedure
The formulas under subsections (d)(2) and (e)(2) of this section
shall be developed according to procedures for issuance of
regulations under the negotiated rulemaking procedure under
subchapter III of chapter 5 of title 5.
(g) Limitations on use of funds
(1) Flexibility for Capital Fund amounts
Of any amounts appropriated for fiscal year 2000 or any fiscal
year thereafter that are allocated for fiscal year 2000 or any
fiscal year thereafter from the Capital Fund for any public
housing agency, the agency may use not more than 20 percent for
activities that are eligible under subsection (e) of this section
for assistance with amounts from the Operating Fund, but only if
the public housing agency plan for the agency provides for such
use.
(2) Full flexibility for small PHAs
Of any amounts allocated for any fiscal year for any public
housing agency that owns or operates less than 250 public housing
dwelling units, is not designated pursuant to section 1437d(j)(2)
of this title as a troubled public housing agency, and (in the
determination of the Secretary) is operating and maintaining its
public housing in a safe, clean, and healthy condition, the
agency may use any such amounts for any eligible activities under
subsections (d)(1) and (e)(1) of this section, regardless of the
fund from which the amounts were allocated and provided. This
subsection shall take effect on October 21, 1998.
(3) Limitation on new construction
(A) In general
Except as provided in subparagraphs (B) and (C), a public
housing agency may not use any of the amounts allocated for the
agency from the Capital Fund or Operating Fund for the purpose
of constructing any public housing unit, if such construction
would result in a net increase from the number of public
housing units owned, assisted, or operated by the public
housing agency on October 1, 1999, including any public housing
units demolished as part of any revitalization effort.
(B) Exception regarding use of assistance
A public housing agency may use amounts allocated for the
agency from the Capital Fund or Operating Fund for the
construction and operation of housing units that are available
and affordable to low-income families in excess of the
limitations on new construction set forth in subparagraph (A),
but the formulas established under subsections (d)(2) and
(e)(2) of this section shall not provide additional funding for
the specific purpose of allowing construction and operation of
housing in excess of those limitations (except to the extent
provided in subparagraph (C)).
(C) Exception regarding formulas
Subject to reasonable limitations set by the Secretary, the
formulas established under subsections (d)(2) and (e)(2) of
this section may provide additional funding for the operation
and modernization costs (but not the initial development costs)
of housing in excess of amounts otherwise permitted under this
paragraph, and such amounts may be so used, if -
(i) such units are part of a mixed-finance project or
otherwise leverage significant additional private or public
investment; and
(ii) the estimated cost of the useful life of the project
is less than the estimated cost of providing tenant-based
assistance under section 1437f(o) of this title for the same
period of time.
(h) Technical assistance
To the extent amounts are provided in advance in appropriations
Acts, the Secretary may make grants or enter into contracts or
cooperative agreements in accordance with this subsection for
purposes of providing, either directly or indirectly -
(1) technical assistance to public housing agencies, resident
councils, resident organizations, and resident management
corporations, including assistance relating to monitoring and
inspections;
(2) training for public housing agency employees and residents;
(3) data collection and analysis;
(4) training, technical assistance, and education to public
housing agencies that are -
(A) at risk of being designated as troubled under section
1437d(j) of this title, to assist such agencies from being so
designated; and
(B) designated as troubled under section 1437d(j) of this
title, to assist such agencies in achieving the removal of that
designation;
(5) contract expertise;
(6) training and technical assistance to assist in the
oversight and management of public housing or tenant-based
assistance;
(7) clearinghouse services in furtherance of the goals and
activities of this subsection; and
(8) assistance in connection with the establishment and
operation of computer centers in public housing through a
Neighborhood Networks initiative described in subsection
(d)(1)(E) of this section.
As used in this subsection, the terms "training" and "technical
assistance" shall include training or technical assistance and the
cost of necessary travel for participants in such training or
technical assistance, by or to officials and employees of the
Department and of public housing agencies, and to residents and to
other eligible grantees.
(i) Eligibility of units acquired from proceeds of sales under
demolition or disposition plan
If a public housing agency uses proceeds from the sale of units
under a homeownership program in accordance with section 1437z-4 of
this title to acquire additional units to be sold to low-income
families, the additional units shall be counted as public housing
for purposes of determining the amount of the allocation to the
agency under this section until sale by the agency, but in no case
longer than 5 years.
(j) Penalty for slow expenditure of capital funds
(1) Obligation of amounts
Except as provided in paragraph (4) and subject to paragraph
(2), a public housing agency shall obligate any assistance
received under this section not later than 24 months after, as
applicable -
(A) the date on which the funds become available to the
agency for obligation in the case of modernization; or
(B) the date on which the agency accumulates adequate funds
to undertake modernization, substantial rehabilitation, or new
construction of units.
(2) Extension of time period for obligation
The Secretary -
(A) may, extend the time period under paragraph (1) for a
public housing agency, for such period as the Secretary
determines to be necessary, if the Secretary determines that
the failure of the agency to obligate assistance in a timely
manner is attributable to -
(i) litigation;
(ii) obtaining approvals of the Federal Government or a
State or local government;
(iii) complying with environmental assessment and abatement
requirements;
(iv) relocating residents;
(v) an event beyond the control of the public housing
agency; or
(vi) any other reason established by the Secretary by
notice published in the Federal Register;
(B) shall disregard the requirements of paragraph (1) with
respect to any unobligated amounts made available to a public
housing agency, to the extent that the total of such amounts
does not exceed 10 percent of the original amount made
available to the public housing agency; and
(C) may, with the prior approval of the Secretary, extend the
time period under paragraph (1), for an additional period not
to exceed 12 months, based on -
(i) the size of the public housing agency;
(ii) the complexity of capital program of the public
housing agency;
(iii) any limitation on the ability of the public housing
agency to obligate the amounts allocated for the agency from
the Capital Fund in a timely manner as a result of State or
local law; or
(iv) such other factors as the Secretary determines to be
relevant.
(3) Effect of failure to comply
(A) Prohibition of new assistance
A public housing agency shall not be awarded assistance under
this section for any month during any fiscal year in which the
public housing agency has funds unobligated in violation of
paragraph (1) or (2).
(B) Withholding of assistance
During any fiscal year described in subparagraph (A), the
Secretary shall withhold all assistance that would otherwise be
provided to the public housing agency. If the public housing
agency cures its failure to comply during the year, it shall be
provided with the share attributable to the months remaining in
the year.
(C) Redistribution
The total amount of any funds not provided public housing
agencies by operation of this paragraph shall be allocated for
agencies determined under section 1437d(j) of this title to be
high-performing.
(4) Exception to obligation requirements
(A) In general
Subject to subparagraph (B), if the Secretary has consented,
before the effective date under section 503(a) of the Quality
Housing and Work Responsibility Act of 1998, to an obligation
period for any agency longer than provided under paragraph (1),
a public housing agency that obligates its funds before the
expiration of that period shall not be considered to be in
violation of paragraph (1).
(B) Prior fiscal years
Notwithstanding subparagraph (A), any funds appropriated to a
public housing agency for fiscal year 1997 or prior fiscal
years shall be fully obligated by the public housing agency not
later than September 30, 1999.
(5) Expenditure of amounts
(A) In general
A public housing agency shall spend any assistance received
under this section not later than 4 years (plus the period of
any extension approved by the Secretary under paragraph (2))
after the date on which funds become available to the agency
for obligation.
(B) Enforcement
The Secretary shall enforce the requirement of subparagraph
(A) through default remedies up to and including withdrawal of
the funding.
(6) Right of recapture
Any obligation entered into by a public housing agency shall be
subject to the right of the Secretary to recapture the obligated
amounts for violation by the public housing agency of the
requirements of this subsection.
(k) Emergency reserve and use of amounts
(1) Set-asides
In each fiscal year after fiscal year 1999, the Secretary shall
set aside, for use in accordance with this subsection, not more
than 2 percent of the total amount made available to carry out
this section for such fiscal year. In addition to amounts set
aside under the preceding sentence, in each fiscal year the
Secretary may set from the total amount made available to carry
out this section for such fiscal year not more than $20,000,000
for the Operation Safe Home program administered by the Office of
the Inspector General of the Department of Housing and Urban
Development, for law enforcement efforts to combat violent crime
on or near the premises of public and federally assisted housing.
(2) Use of funds
Amounts set aside under paragraph (1) shall be available to the
Secretary for use for assistance, as provided in paragraph (3),
in connection with -
(A) emergencies and other disasters; and
(C) (!2) housing needs resulting from any settlement of
litigation; and
(3) Eligible uses
In carrying out this subsection, the Secretary may use amounts
set aside under this subsection to provide -
(A) assistance for any eligible use under the Operating Fund
or the Capital Fund established by this section; or
(B) tenant-based assistance in accordance with section 1437f
of this title.
(4) Limitation
With respect to any fiscal year, the Secretary may carry over
not more than a total of $25,000,000 in unobligated amounts set
aside under this subsection for use in connection with the
activities described in paragraph (2) during the succeeding
fiscal year.
(5) Publication
The Secretary shall publish the use of any amounts allocated
under this subsection relating to emergencies (other than
disasters and housing needs resulting from any settlement of
litigation) in the Federal Register.
(l) Treatment of nonrental income
A public housing agency that receives income from nonrental
sources (as determined by the Secretary) may retain and use such
amounts without any decrease in the amounts received under this
section from the Capital or Operating Fund. Any such nonrental
amounts retained shall be used only for low-income housing or to
benefit the residents assisted by the public housing agency.
(m) Provision of only capital or operating assistance
(1) Authority
In appropriate circumstances, as determined by the Secretary, a
public housing agency may commit capital assistance only, or
operating assistance only, for public housing units, which
assistance shall be subject to all of the requirements applicable
to public housing except as otherwise provided in this
subsection.
(2) Exemptions
In the case of any public housing unit assisted pursuant to the
authority under paragraph (1), the Secretary may, by regulation,
reduce the period under subsection (d)(3) or (e)(3) of this
section, as applicable, during which such units must be operated
under requirements applicable to public housing. In cases in
which there is commitment of operating assistance but no
commitment of capital assistance, the Secretary may make section
8 [42 U.S.C. 1437f] requirements applicable, as appropriate, by
regulation.
(n) Treatment of public housing
(1) Repealed. Pub. L. 108-7, div. K, title II, Sec. 212(a), Feb.
20, 2003, 117 Stat. 503
(2) Reduction of asthma incidence
Notwithstanding any other provision of this section, the New
York City Housing Authority may, in its sole discretion, from
amounts provided from the Operating and Capital Funds, or from
amounts provided for public housing before amounts are made
available from such Funds, use not more than exceeding (!3)
$500,000 per year for the purpose of initiating, expanding or
continuing a program for the reduction of the incidence of asthma
among residents. The Secretary shall consult with the
Administrator of the Environmental Protection Agency and the
Secretary of Health and Human Services to identify and consider
sources of funding for the reduction of the incidence of asthma
among recipients of assistance under this subchapter.
(3) Services for elderly residents
Notwithstanding any other provision of this section, the New
York City Housing Authority may, in its sole discretion, from
amounts provided from the Operating and Capital Funds, or from
amounts provided for public housing before the amounts are made
available from such Funds, use not more than $600,000 per year
for the purpose of developing a comprehensive plan to address the
need for services for elderly residents. Such plan may be
developed by a partnership created by such Housing Authority and
may include the creation of a model project for assisted living
at one or more developments. The model project may provide for
contracting with private parties for the delivery of services.
(4) Effective date
This subsection shall apply to fiscal year 1999 and each fiscal
year thereafter.