42 U.S.C. § 1437a — Rental payments

Page 4531 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437a 1 See References in Text note below. cept that the study under this section shall differen- tiate between and compare the development and con- struction of new public housing and the assistance of existing public housing structures; ‘‘(2) the certificate program for rental assistance under section 8(b)(1) of the United States Housing Act of 1937 [42 U.S.C. 1437f(b)(1)]; ‘‘(3) the voucher program for rental assistance under section 8(o) of the United States Housing Act of 1937 [42 U.S.C. 1437f(o)]; ‘‘(4) the programs for project-based assistance under section 8 of the United States Housing Act of 1937 [42 U.S.C. 1437f]; ‘‘(5) the rental assistance payments program under section 521(a)(2)(A) of the Housing Act of 1949 [42 U.S.C. 1490a(a)(2)(A)]; ‘‘(6) the program for housing for the elderly under section 202 of the Housing Act of 1959 [12 U.S.C. 1701q]; ‘‘(7) the program for housing for persons with dis- abilities under section 811 of the Cranston-Gonzalez National Affordable Housing Act [42 U.S.C. 8013]; ‘‘(8) the program for financing housing by a loan or mortgage insured under section 221(d)(3) of the Na- tional Housing Act [12 U.S.C. 1715l(d)(3)] that bears interest at a rate determined under the proviso of section 221(d)(5) of such Act [12 U.S.C. 1715l(d)(5)]; ‘‘(9) the program under section 236 of the National Housing Act [12 U.S.C. 1715z–1]; ‘‘(10) the program for construction or substantial rehabilitation under section 8(b)(2) of the United States Housing Act of 1937 [42 U.S.C. 1437f(b)(2)], as in effect before October 1, 1983; and ‘‘(11) any other program for housing assistance ad- ministered by the Secretary of Housing and Urban Development or the Secretary of Agriculture, under which occupancy in the housing assisted or housing assistance provided is based on income, as the Comp- troller General may determine. ‘‘(e) REPORT.—Not later than 12 months after the date of the enactment of this Act [Oct. 21, 1998], the Comp- troller General shall submit to the Congress a final re- port which shall contain the results of the study under this section, including the analysis and estimates re- quired under subsection (b). ‘‘(f) EFFECTIVE DATE.—This section shall take effect on the date of the enactment of this Act [Oct. 21, 1998].’’ LIMITATION ON WITHHOLDING OR CONDITIONING OF ASSISTANCE Assistance provided for in Housing and Community Development Act of 1974 [42 U.S.C. 5301 et seq.], Na- tional Housing Act [12 U.S.C. 1701 et seq.], United States Housing Act of 1937 [42 U.S.C. 1437 et seq.], Hous- ing Act of 1949 [see Short Title note set out under sec- tion 1441 of this title], Demonstration Cities and Metro- politan Development Act of 1966 [see Short Title note set out under section 3331 of this title], and Housing and Urban Development Acts of 1965, 1968, 1969, and 1970 not to be withheld or made subject to conditions by reason of tax-exempt status of obligations issued or to be issued for financing of assistance, except as other- wise provided by law, see section 817 of Pub. L. 93–383, set out as a note under section 5301 of this title. § 1437a. Rental payments (a) Families included; rent options; minimum amount; occupancy by police officers and over-income families (1) Dwelling units assisted under this chapter shall be rented only to families who are low-in- come families at the time of their initial occu- pancy of such units. Reviews of family income shall be made pursuant to paragraph (6); except that, in the case of any family with a fixed in- come, as defined by the Secretary, after the ini- tial review of the family’s income, the public housing agency or owner shall not be required to conduct a review of the family’s income for any year for which such family certifies, in accord- ance with such requirements as the Secretary shall establish, which shall include policies to adjust for inflation-based income changes, that 90 percent or more of the income of the family consists of fixed income, and that the sources of such income have not changed since the pre- vious year, except that the public housing agen- cy or owner shall conduct a review of each such family’s income not less than once every 3 years. Except as provided in paragraph (2) and subject to the requirement under paragraph (3), a family shall pay as rent for a dwelling unit as- sisted under this chapter (other than a family assisted under section 1437f(o) or (y) of this title or paying rent under section 1437f(c)(3)(B) 1 of this title) the highest of the following amounts, rounded to the nearest dollar: (A) 30 per centum of the family’s monthly adjusted income; (B) 10 per centum of the family’s monthly income; or (C) if the family is receiving payments for welfare assistance from a public agency and a part of such payments, adjusted in accordance with the family’s actual housing costs, is spe- cifically designated by such agency to meet the family’s housing costs, the portion of such payments which is so designated. (2) RENTAL PAYMENTS FOR PUBLIC HOUSING FAM- ILIES.— (A) AUTHORITY FOR FAMILY TO SELECT.— (i) IN GENERAL.—A family residing in a public housing dwelling shall pay as month- ly rent for the unit the amount determined under clause (i) or (ii) of subparagraph (B), subject to the requirement under paragraph (3) (relating to minimum rents). Each public housing agency shall provide for each family residing in a public housing dwelling unit owned, assisted, or operated by the agency to elect annually whether the rent paid by such family shall be determined under clause (i) or (ii) of subparagraph (B). A pub- lic housing agency may not at any time fail to provide both such rent options for any public housing dwelling unit owned, as- sisted, or operated by the agency. (ii) AUTHORITY TO RETAIN FLAT AND CEILING RENTS.—Notwithstanding clause (i) or any other provision of law, any public housing agency that is administering flat rents or ceiling rents pursuant to any authority re- ferred to in section 519(d) of the Quality Housing and Work Responsibility Act of 1998 before the effective day of such Act may continue to charge rent in accordance with such rent provisions after such effective date, except that the agency shall provide for families residing in public housing dwell- ing units owned or operated by the agency to elect annually whether to pay rent under such provisions or in accordance with one of the rent options referred to in subparagraph (A). (B) ALLOWABLE RENT STRUCTURES.— (i) FLAT RENTS.—Each public housing agency shall establish, for each dwelling Page 4532 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437a 2 So in original. Probably should be ‘‘or’’. unit in public housing owned or operated by the agency, a flat rental amount for the dwelling unit, which— (I) shall not be lower than 80 percent of— (aa) the applicable fair market rental established under section 1437f(c) of this title; or (bb) at the discretion of the Secretary, such other applicable fair market rental established by the Secretary that the Secretary determines more accurately reflects local market conditions and is based on an applicable market area that is geographically smaller than the appli- cable market area used for purposes of the applicable fair market rental under section 1437f(c) of this title; except that a public housing agency may apply to the Secretary for exception allow- ing for a flat rental amount for a property that is lower than the amount otherwise determined pursuant to item (aa) or (bb) and the Secretary may grant such excep- tion if the Secretary determines that the fair market rental for the applicable mar- ket area pursuant to item (aa) or (bb) does not reflect the market value of the prop- erty and the proposed lower flat rental amount is based on a market analysis of the applicable market and complies with subclause (II) and (II) shall be designed in accordance with subparagraph (D) so that the rent struc- tures do not create a disincentive for con- tinued residency in public housing by fam- ilies who are attempting to become eco- nomically self-sufficient through employ- ment or who have attained a level of self- sufficiency through their own efforts. If a new flat rental amount for a dwelling unit will increase a family’s existing rental payment by more than 35 percent, the new flat rental amount shall be phased in as nec- essary to ensure that the family’s existing rental payment does not increase by more than 35 percent annually. The preceding sen- tence shall not be construed to require es- tablishment of rental amounts equal to 80 percent of the fair market rental in years when the fair market rental falls from the prior year. (ii) INCOME-BASED RENTS.— (I) IN GENERAL.—The monthly rental amount determined under this clause for a family shall be an amount, determined by the public housing agency, that does not exceed the greatest of the amounts (round- ed to the nearest dollar) determined under subparagraphs (A), (B), and (C) of para- graph (1). This clause may not be con- strued to require a public housing agency to charge a monthly rent in the maximum amount permitted under this clause. (II) DISCRETION.—Subject to the limita- tion on monthly rental amount under sub- clause (I), a public housing agency may, in its discretion, implement a rent structure under this clause requiring that a portion of the rent be deposited to an escrow or savings account, imposing ceiling rents, or adopting income exclusions (such as those set forth in subsection (b)(5)(B)), or may establish another reasonable rent struc- ture or amount. (C) SWITCHING RENT DETERMINATION METHODS BECAUSE OF HARDSHIP CIRCUMSTANCES.—Not- withstanding subparagraph (A), in the case of a family that has elected to pay rent in the amount determined under subparagraph (B)(i), a public housing agency shall immediately provide for the family to pay rent in the amount determined under subparagraph (B)(ii) during the period for which such election was made upon a determination that the family is unable to pay the amount determined under subparagraph (B)(i) because of financial hard- ship, including— (i) situations in which the income of the family has decreased because of changed cir- cumstances, loss of 2 reduction of employ- ment, death in the family, and reduction in or loss of income or other assistance; (ii) an increase, because of changed cir- cumstances, in the family’s expenses for medical costs, child care, transportation, education, or similar items; and (iii) such other situations as may be deter- mined by the agency. (D) ENCOURAGEMENT OF SELF-SUFFICIENCY.— The rental policy developed by each public housing agency shall encourage and reward employment and economic self-sufficiency. (E) INCOME REVIEWS.—Notwithstanding the second sentence of paragraph (1), in the case of families that are paying rent in the amount determined under subparagraph (B)(i), the agency shall review the income of such family not less than once every 3 years. (3) MINIMUM RENTAL AMOUNT.— (A) REQUIREMENT.—Notwithstanding para- graph (1) of this subsection, the method for rent determination elected pursuant to para- graph (2)(A) of this subsection by a family re- siding in public housing, section 1437f(o)(2) of this title, or section 206(d) of the Housing and Urban-Rural Recovery Act of 1983 (including paragraph (5) of such section), the following entities shall require the following families to pay a minimum monthly rental amount (which amount shall include any amount al- lowed for utilities) of not more than $50 per month, as follows: (i) Each public housing agency shall re- quire the payment of such minimum month- ly rental amount, which amount shall be de- termined by the agency, by— (I) each family residing in a dwelling unit in public housing by the agency; (II) each family who is assisted under the certificate or moderate rehabilitation pro- gram under section 1437f of this title; and (III) each family who is assisted under the voucher program under section 1437f of this title, and the agency shall reduce the monthly assistance payment on behalf of such family as may be necessary to ensure payment of such minimum monthly rental amount. Page 4533 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437a (ii) The Secretary shall require each fam- ily who is assisted under any other program for rental assistance under section 1437f of this title to pay such minimum monthly rental amount, which amount shall be deter- mined by the Secretary. (B) EXCEPTION FOR HARDSHIP CIR- CUMSTANCES.— (i) IN GENERAL.—Notwithstanding subpara- graph (A), a public housing agency (or the Secretary, in the case of a family described in subparagraph (A)(ii)) shall immediately grant an exemption from application of the minimum monthly rental under such sub- paragraph to any family unable to pay such amount because of financial hardship, which shall include situations in which (I) the fam- ily has lost eligibility for or is awaiting an eligibility determination for a Federal, State, or local assistance program, including a family that includes a member who is an alien lawfully admitted for permanent resi- dence under the Immigration and Nation- ality Act [8 U.S.C. 1101 et seq.] who would be entitled to public benefits but for title IV of the Personal Responsibility and Work Op- portunity Reconciliation Act of 1996 [8 U.S.C. 1601 et seq.]; (II) the family would be evicted as a result of the imposition of the minimum rent requirement under subpara- graph (A); (III) the income of the family has decreased because of changed circumstance, including loss of employment; (IV) a death in the family has occurred; and (V) other sit- uations as may be determined by the agency (or the Secretary, in the case of a family de- scribed in subparagraph (A)(ii)). (ii) WAITING PERIOD.—If a resident requests a hardship exemption under this subpara- graph and the public housing agency (or the Secretary, in the case of a family described in subparagraph (A)(ii)) reasonably deter- mines the hardship to be of a temporary na- ture, an exemption shall not be granted dur- ing the 90-day period beginning upon the making of a request for the exemption. A resident may not be evicted during such 90- day period for nonpayment of rent. In such a case, if the resident thereafter demonstrates that the financial hardship is of a long-term basis, the agency (or the Secretary) shall retroactively exempt the resident from the applicability of the minimum rent require- ment for such 90-day period. (4) OCCUPANCY BY POLICE OFFICERS.— (A) IN GENERAL.—Subject to subparagraph (B) and notwithstanding any other provision of law, a public housing agency may, in ac- cordance with the public housing agency plan for the agency, allow a police officer who is not otherwise eligible for residence in public housing to reside in a public housing dwelling unit. The number and location of units occu- pied by police officers under this paragraph and the terms and conditions of their tenan- cies shall be determined by the public housing agency. (B) INCREASED SECURITY.—A public housing agency may take the actions authorized in subparagraph (A) only for the purpose of in- creasing security for the residents of a public housing project. (C) DEFINITION.—In this paragraph, the term ‘‘police officer’’ means any person determined by a public housing agency to be, during the period of residence of that person in public housing, employed on a full-time basis as a duly licensed professional police officer by a Federal, State, or local government or by any agency thereof (including a public housing agency having an accredited police force). (5) OCCUPANCY BY OVER-INCOME FAMILIES IN CERTAIN PUBLIC HOUSING.— (A) AUTHORITY.—Notwithstanding any other provision of law, a public housing agency that owns or operates less than 250 units may, on a month-to-month basis, lease a dwelling unit in a public housing project to an over-income family in accordance with this paragraph, but only if there are no eligible families applying for housing assistance from the public housing agency for that month and the agency pro- vides not less than 30-day public notice of the availability of such assistance. (B) TERMS AND CONDITIONS.—The number and location of dwelling units of a public housing agency occupied under this paragraph by over- income families, and the terms and conditions of those tenancies, shall be determined by the public housing agency, except that— (i) notwithstanding paragraph (2), rent for a unit shall be in an amount that is not less than the costs to operate the unit; (ii) if an eligible family applies for resi- dence after an over-income family moves in to the last available unit, the over-income family shall vacate the unit in accordance with notice of termination of tenancy pro- vided by the agency, which shall be provided not less than 30 days before such termi- nation; and (iii) if a unit is vacant and there is no one on the waiting list, the public housing agen- cy may allow an over-income family to gain immediate occupancy in the unit, while si- multaneously providing reasonable public notice and outreach with regard to avail- ability of the unit. (C) DEFINITION.—For purposes of this para- graph, the term ‘‘over-income family’’ means an individual or family that is not a low-in- come family at the time of initial occupancy. (6) REVIEWS OF FAMILY INCOME.— (A) FREQUENCY.—Reviews of family income for purposes of this section shall be made— (i) in the case of all families, upon the ini- tial provision of housing assistance for the family; (ii) annually thereafter, except as provided in paragraph (1) with respect to fixed-income families; (iii) upon the request of the family, at any time the income or deductions (under sub- section (b)(5)) of the family change by an amount that is estimated to result in a de- crease of 10 percent (or such lower amount as the Secretary may, by notice, establish, or permit the public housing agency or owner to establish) or more in annual ad- justed income; and Page 4534 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437a (iv) at any time the income or deductions (under subsection (b)(5)) of the family change by an amount that is estimated to result in an increase of 10 percent or more in annual adjusted income, or such other amount as the Secretary may by notice es- tablish, except that any increase in the earned income of a family shall not be con- sidered for purposes of this clause (except that earned income may be considered if the increase corresponds to previous decreases under clause (iii)), except that a public hous- ing agency or owner may elect not to con- duct such review in the last three months of a certification period. (B) IN GENERAL.—Reviews of family income for purposes of this section shall be subject to the provisions of section 3544 of this title. (7) CALCULATION OF INCOME.— (A) USE OF CURRENT YEAR INCOME.—In deter- mining family income for initial occupancy or provision of housing assistance pursuant to clause (i) of paragraph (6)(A) or pursuant to re- views pursuant to clause (iii) or (iv) of such paragraph, a public housing agency or owner shall use the income of the family as esti- mated by the agency or owner for the upcom- ing year. (B) USE OF PRIOR YEAR INCOME.—In deter- mining family income for annual reviews pur- suant to paragraph (6)(A)(ii), a public housing agency or owner shall, except as otherwise provided in this paragraph and paragraph (1), use the income of the family as determined by the agency or owner for the preceding year, taking into consideration any redetermination of income during such prior year pursuant to clause (iii) or (iv) of paragraph (6)(A). (C) OTHER INCOME.—In determining the in- come for any family based on the prior year’s income, with respect to prior year calcula- tions of income not subject to subparagraph (B), a public housing agency or owner may make other adjustments as it considers appro- priate to reflect current income. (D) SAFE HARBOR.—A public housing agency or owner may, to the extent such information is available to the public housing agency or owner, determine the family’s income prior to the application of any deductions based on timely income determinations made for pur- poses of other means-tested Federal public as- sistance programs (including the program for block grants to States for temporary assist- ance for needy families under part A of title IV of the Social Security Act [42 U.S.C. 601 et seq.], a program for Medicaid assistance under a State plan approved under title XIX of the Social Security Act [42 U.S.C. 1396 et seq.], and the supplemental nutrition assistance pro- gram (as such term is defined in section 2012 of title 7)). The Secretary shall, in consultation with other appropriate Federal agencies, de- velop electronic procedures to enable public housing agencies and owners to have access to such benefit determinations made by other means-tested Federal programs that the Sec- retary determines to have comparable reli- ability. Exchanges of such information shall be subject to the same limitations and tenant protections provided under section 3544 of this title with respect to information obtained under the requirements of section 303(i) of the Social Security Act (42 U.S.C. 503(i)). (E) ELECTRONIC INCOME VERIFICATION.—The Secretary shall develop a mechanism for dis- closing information to a public housing agen- cy for the purpose of verifying the employ- ment and income of individuals and families in accordance with section 453(j)(7)(E) of the So- cial Security Act (42 U.S.C. 653(j)(7)(E)), and shall ensure public housing agencies have ac- cess to information contained in the ‘‘Do Not Pay’’ system established by section 5 of the Improper Payments Elimination and Recovery Improvement Act of 2012 (Public Law 112–248; 126 Stat. 2392).1 (F) PHA AND OWNER COMPLIANCE.—A public housing agency or owner may not be consid- ered to fail to comply with this paragraph or paragraph (6) due solely to any de minimis er- rors made by the agency or owner in calcu- lating family incomes. (8) CARBON MONOXIDE ALARMS.—Each public housing agency shall ensure that carbon mon- oxide alarms or detectors are installed in each dwelling unit in public housing owned or oper- ated by the public housing agency in a manner that meets or exceeds— (A) the standards described in chapters 9 and 11 of the 2018 publication of the International Fire Code, as published by the International Code Council; or (B) any other standards as may be adopted by the Secretary, including any relevant up- dates to the International Fire Code, through a notice published in the Federal Register. (9) Qualifying smoke alarms (A) In general Each public housing agency shall ensure that a qualifying smoke alarm is installed in accordance with applicable codes and stand- ards published by the International Code Council or the National Fire Protection As- sociation and the requirements of the Na- tional Fire Protection Association Standard 72, or any successor standard, in each level and in or near each sleeping area in any dwelling unit in public housing owned or op- erated by the public housing agency, includ- ing in basements but excepting crawl spaces and unfinished attics, and in each common area in a project containing such a dwelling unit. (B) Definitions For purposes of this paragraph, the fol- lowing definitions shall apply: (i) Smoke alarm defined The term ‘‘smoke alarm’’ has the mean- ing given the term ‘‘smoke detector’’ in section 2225(d) of title 15. (ii) Qualifying smoke alarm defined The term ‘‘qualifying smoke alarm’’ means a smoke alarm that— (I) in the case of a dwelling unit built before December 29, 2022, and not sub- stantially rehabilitated after December 29, 2022— Page 4535 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437a 3 So in original. Probably should be ‘‘ ‘extremely low-income families’ ’’. (aa)(AA) is hardwired; or (BB) uses 10-year non rechargeable, nonreplaceable primary batteries and is sealed, is tamper resistant, and con- tains silencing means; and (bb) provides notification for persons with hearing loss as required by the National Fire Protection Association Standard 72, or any successor standard; or (II) in the case of a dwelling unit built or substantially rehabilitated after De- cember 29, 2022, is hardwired. (b) Definition of terms under this chapter When used in this chapter: (1) The term ‘‘low-income housing’’ means de- cent, safe, and sanitary dwellings assisted under this chapter. The term ‘‘public housing’’ means low-income housing, and all necessary appur- tenances thereto, assisted under this chapter other than under section 1437f of this title. The term ‘‘public housing’’ includes dwelling units in a mixed finance project that are assisted by a public housing agency with capital or oper- ating assistance. When used in reference to pub- lic housing, the term ‘‘low-income housing project’’ or ‘‘project’’ means (A) housing devel- oped, acquired, or assisted by a public housing agency under this chapter, and (B) the improve- ment of any such housing. (2)(A) The term ‘‘low-income families’’ means those families whose incomes do not exceed 80 per centum of the median income for the area, as determined by the Secretary with adjust- ments for smaller and larger families, except that the Secretary may establish income ceil- ings higher or lower than 80 per centum of the median for the area on the basis of the Sec- retary’s findings that such variations are nec- essary because of prevailing levels of construc- tion costs or unusually high or low family in- comes. (B) The term ‘‘very low-income families’’ means low-income families whose incomes do not exceed 50 per centum of the median family income for the area, as determined by the Sec- retary with adjustments for smaller and larger families, except that the Secretary may estab- lish income ceilings higher or lower than 50 per centum of the median for the area on the basis of the Secretary’s findings that such variations are necessary because of unusually high or low family incomes. (C) The term extremely low-income families 3 means very low-income families whose incomes do not exceed the higher of— (i) the poverty guidelines updated periodi- cally by the Department of Health and Human Services under the authority of section 9902(2) of this title applicable to a family of the size involved (except that this clause shall not apply in the case of public housing agencies or projects located in Puerto Rico or any other territory or possession of the United States); or (ii) 30 percent of the median family income for the area, as determined by the Secretary, with adjustments for smaller and larger fami- lies (except that the Secretary may establish income ceilings higher or lower than 30 per- cent of the median for the area on the basis of the Secretary’s findings that such variations are necessary because of unusually high or low family incomes). (D) Such ceilings shall be established in con- sultation with the Secretary of Agriculture for any rural area, as defined in section 1490 of this title, taking into account the subsidy character- istics and types of programs to which such ceil- ings apply. In determining median incomes (of persons, families, or households) for an area or establishing any ceilings or limits based on in- come under this chapter, the Secretary shall de- termine or establish area median incomes and income ceilings and limits for Westchester and Rockland Counties, in the State of New York, as if each such county were an area not contained within the metropolitan statistical area in which it is located. In determining such area median incomes or establishing such income ceilings or limits for the portion of such metro- politan statistical area that does not include Westchester or Rockland Counties, the Sec- retary shall determine or establish area median incomes and income ceilings and limits as if such portion included Westchester and Rockland Counties. In determining areas that are des- ignated as difficult development areas for pur- poses of the low-income housing tax credit, the Secretary shall include Westchester and Rock- land Counties, New York, in the New York City metropolitan area. (3) PERSONS AND FAMILIES.— (A) SINGLE PERSONS.—The term ‘‘families’’ includes families consisting of a single person in the case of (i) an elderly person, (ii) a dis- abled person, (iii) a displaced person, (iv) the remaining member of a tenant family, (v) a youth described in section 1437f(x)(2)(B) of this title, and (vi) any other single persons. In no event may any single person under clause (v) or (vi) of the first sentence be provided a hous- ing unit assisted under this chapter of 2 or more bedrooms. (B) FAMILIES.—The term ‘‘families’’ includes families with children and, in the cases of el- derly families, near-elderly families, and dis- abled families, means families whose heads (or their spouses), or whose sole members, are el- derly, near-elderly, or persons with disabil- ities, respectively. The term includes, in the cases of elderly families, near-elderly families, and disabled families, 2 or more elderly per- sons, near-elderly persons, or persons with dis- abilities living together, and 1 or more such persons living with 1 or more persons deter- mined under the public housing agency plan to be essential to their care or well-being. (C) ABSENCE OF CHILDREN.—The temporary absence of a child from the home due to place- ment in foster care shall not be considered in determining family composition and family size. (D) ELDERLY PERSON.—The term ‘‘elderly person’’ means a person who is at least 62 years of age. (E) PERSON WITH DISABILITIES.—The term ‘‘person with disabilities’’ means a person who— Page 4536 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437a (i) has a disability as defined in section 423 of this title, (ii) is determined, pursuant to regulations issued by the Secretary, to have a physical, mental, or emotional impairment which (I) is expected to be of long-continued and in- definite duration, (II) substantially impedes his or her ability to live independently, and (III) is of such a nature that such ability could be improved by more suitable housing conditions, or (iii) has a developmental disability as de- fined in section 15002 of this title. Such term shall not exclude persons who have the disease of acquired immunodeficiency syn- drome or any conditions arising from the etio- logic agent for acquired immunodeficiency syndrome. Notwithstanding any other provi- sion of law, no individual shall be considered a person with disabilities, for purposes of eligi- bility for low-income housing under this sub- chapter, solely on the basis of any drug or al- cohol dependence. The Secretary shall consult with other appropriate Federal agencies to im- plement the preceding sentence. (F) DISPLACED PERSON.—The term ‘‘displaced person’’ means a person displaced by govern- mental action, or a person whose dwelling has been extensively damaged or destroyed as a re- sult of a disaster declared or otherwise for- mally recognized pursuant to Federal disaster relief laws. (G) NEAR-ELDERLY PERSON.—The term ‘‘near- elderly person’’ means a person who is at least 50 years of age but below the age of 62. (4) INCOME.—The term ‘‘income’’ means, with respect to a family, income received from all sources by each member of the household who is 18 years of age or older or is the head of house- hold or spouse of the head of the household, plus unearned income by or on behalf of each depend- ent who is less than 18 years of age, as deter- mined in accordance with criteria prescribed by the Secretary, in consultation with the Sec- retary of Agriculture, subject to the following requirements: (A) INCLUDED AMOUNTS.—Such term includes recurring gifts and receipts, actual income from assets, and profit or loss from a business. (B) EXCLUDED AMOUNTS.—Such term does not include— (i) any imputed return on assets, except to the extent that net family assets exceed $50,000, except that such amount (as it may have been previously adjusted) shall be ad- justed for inflation annually by the Sec- retary in accordance with an inflationary index selected by the Secretary; (ii) any amounts that would be eligible for exclusion under section 1613(a)(7) of the So- cial Security Act (42 U.S.C. 1382b(a)(7)); (iii) deferred disability benefits from the Department of Veterans Affairs that are re- ceived in a lump sum amount or in prospec- tive monthly amounts; (iv) any expenses related to aid and at- tendance under section 1521 of title 38 to vet- erans who are in need of regular aid and at- tendance; and (v) exclusions from income as established by the Secretary by regulation or notice, or any amount required by Federal law to be excluded from consideration as income. (C) EARNED INCOME OF STUDENTS.—Such term does not include— (i) earned income, up to an amount as the Secretary may by regulation establish, of any dependent earned during any period that such dependent is attending school or voca- tional training on a full-time basis; or (ii) any grant-in-aid or scholarship amounts related to such attendance used— (I) for the cost of tuition or books; or (II) in such amounts as the Secretary may allow, for the cost of room and board. (D) EDUCATIONAL SAVINGS ACCOUNTS.—In- come shall be determined without regard to any amounts in or from, or any benefits from, any Coverdell education savings account under section 530 of title 26 or any qualified tuition program under section 529 of such title. (E) RECORDKEEPING.—The Secretary may not require a public housing agency or owner to maintain records of any amounts excluded from income pursuant to this subparagraph. (5) ADJUSTED INCOME.—The term ‘‘adjusted in- come’’ means, with respect to a family, the amount (as determined by the public housing agency or owner) of the income of the members of the family residing in a dwelling unit or the persons on a lease, after any deductions from in- come as follows: (A) ELDERLY AND DISABLED FAMILIES.—$525 in the case of any family that is an elderly fam- ily or a disabled family. (B) MINORS, STUDENTS, AND PERSONS WITH DISABILITIES.—$480 for each member of the family residing in the household (other than the head of the household or his or her spouse) who is less than 18 years of age or is attending school or vocational training on a full-time basis, or who is 18 years of age or older and is a person with disabilities. (C) CHILD CARE.—Any reasonable child care expenses necessary to enable a member of the family to be employed or to further his or her education. (D) HEALTH AND MEDICAL EXPENSES.—The amount, if any, by which 10 percent of annual family income is exceeded by the sum of— (i) in the case of any elderly or disabled family, any unreimbursed health and med- ical care expenses; and (ii) any unreimbursed reasonable attend- ant care and auxiliary apparatus expenses for each handicapped member of the family, if determined necessary by the public hous- ing agency or owner to enable any member of such family to be employed. The Secretary shall, by regulation, provide hardship exemptions to the requirements of this subparagraph and subparagraph (C) for impacted families who demonstrate an inabil- ity to pay calculated rents because of finan- cial hardship. Such regulations shall include a requirement to notify tenants regarding any changes to the determination of adjusted in- come pursuant to such subparagraphs based on the determination of the family’s claim of fi- Page 4537 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437a 4 So in original. Probably should be ‘‘assistance under’’. nancial hardship exemptions required by the preceding sentence. Such regulations shall be promulgated in consultation with tenant orga- nizations, industry participants, and the Sec- retary of Health and Human Services, with an adequate comment period provided for inter- ested parties. (E) PERMISSIVE DEDUCTIONS.—Such addi- tional deductions as a public housing agency may, at its discretion, establish, except that the Secretary shall establish procedures to en- sure that such deductions do not materially increase Federal expenditures. The Secretary shall annually calculate the amounts of the deductions under subparagraphs (A) and (B), as such amounts may have been pre- viously calculated, by applying an inflationary factor as the Secretary shall, by regulation, es- tablish, except that the actual deduction deter- mined for each year shall be established by rounding such amount to the next lowest mul- tiple of $25. (6) PUBLIC HOUSING AGENCY.— (A) IN GENERAL.—Except as provided in sub- paragraph (B), the term ‘‘public housing agen- cy’’ means any State, county, municipality, or other governmental entity or public body (or agency or instrumentality thereof) which is authorized to engage in or assist in the devel- opment or operation of public housing, or a consortium of such entities or bodies as ap- proved by the Secretary. (B) SECTION 1437f PROGRAM.—For purposes of the program for tenant-based assistance under section 1437f of this title, such term includes— (i) a consortia of public housing agencies that the Secretary determines has the ca- pacity and capability to administer a pro- gram for assistance under such section in an efficient manner; (ii) any other public or private nonprofit entity that, upon the effective date under section 503(a) of the Quality Housing and Work Responsibility Act of 1998, was admin- istering any program for tenant-based as- sistance under section 1437f of this title (as in effect before the effective date of such Act), pursuant to a contract with the Sec- retary or a public housing agency; and (iii) with respect to any area in which no public housing agency has been organized or where the Secretary determines that a pub- lic housing agency is unwilling or unable to implement a program for tenant-based as- sistance 4 section 1437f of this title, or is not performing effectively— (I) the Secretary or another public or private nonprofit entity that by contract agrees to receive assistance amounts under section 1437f of this title and enter into housing assistance payments con- tracts with owners and perform the other functions of public housing agency under section 1437f of this title; or (II) notwithstanding any provision of State or local law, a public housing agency for another area that contracts with the Secretary to administer a program for housing assistance under section 1437f of this title, without regard to any otherwise applicable limitations on its area of oper- ation. (7) The term ‘‘State’’ includes the several States, the District of Columbia, the Common- wealth of Puerto Rico, the territories and pos- sessions of the United States, and the Trust Ter- ritory of the Pacific Islands. (8) The term ‘‘Secretary’’ means the Secretary of Housing and Urban Development. (9) DRUG-RELATED CRIMINAL ACTIVITY.—The term ‘‘drug-related criminal activity’’ means the illegal manufacture, sale, distribution, use, or possession with intent to manufacture, sell, distribute, or use, of a controlled substance (as such term is defined in section 802 of title 21). (10) MIXED-FINANCE PROJECT.—The term ‘‘mixed-finance project’’ means a public housing project that meets the requirements of section 1437z–7 of this title. (11) PUBLIC HOUSING AGENCY PLAN.—The term ‘‘public housing agency plan’’ means the plan of a public housing agency prepared in accordance with section 1437c–1 of this title. (12) CAPITAL FUND.—The term ‘‘Capital Fund’’ means the fund established under section 1437g(d) of this title. (13) OPERATING FUND.—The term ‘‘Operating Fund’’ means the fund established under section 1437g(e) of this title. (c) Definition of terms used in reference to pub- lic housing When used in reference to public housing: (1) The term ‘‘development’’ means any or all undertakings necessary for planning, land acqui- sition, demolition, construction, or equipment, in connection with a low-income housing project. The term ‘‘development cost’’ comprises the costs incurred by a public housing agency in such undertakings and their necessary financing (including the payment of carrying charges), and in otherwise carrying out the development of such project, but does not include the costs associated with the demolition of or remedi- ation of environmental hazards associated with public housing units that will not be replaced on the project site, or other extraordinary site costs as determined by the Secretary. Construc- tion activity in connection with a low-income housing project may be confined to the recon- struction, remodeling, or repair of existing buildings. (2) The term ‘‘operation’’ means any or all un- dertakings appropriate for management, oper- ation, services, maintenance, security (including the cost of security personnel), or financing in connection with a low-income housing project. The term also means the financing of tenant programs and services for families residing in low-income housing projects, particularly where there is maximum feasible participation of the tenants in the development and operation of such tenant programs and services. As used in this paragraph, the term ‘‘tenant programs and services’’ includes the development and mainte- nance of tenant organizations which participate in the management of low-income housing projects; the training of tenants to manage and operate such projects and the utilization of their Page 4538 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437a 5 So in original. The comma probably should be a semicolon. services in project management and operation; counseling on household management, house- keeping, budgeting, money management, child care, and similar matters; advice as to resources for job training and placement, education, wel- fare, health, and other community services; services which are directly related to meeting tenant needs and providing a wholesome living environment; and referral to appropriate agen- cies in the community when necessary for the provision of such services. To the maximum ex- tent available and appropriate, existing public and private agencies in the community shall be used for the provision of such services. (3) The term ‘‘acquisition cost’’ means the amount prudently required to be expended by a public housing agency in acquiring property for a low-income housing project. (4) The term ‘‘congregate housing’’ means low- rent housing with which there is connected a central dining facility where wholesome and ec- onomical meals can be served to occupants. Ex- penditures incurred by a public housing agency in the operation of a central dining facility in connection with congregate housing (other than the cost of providing food and service) shall be considered a cost of operation of the project. (5) The terms ‘‘group home’’ and ‘‘independent living facility’’ have the meanings given such terms in section 8013(k) of this title. (d) Availability of income matching information (1) Disclosure to PHA A public housing agency, or the owner re- sponsible for determining the participant’s eli- gibility or level of benefits, shall require any family described in paragraph (2) who receives information regarding income, earnings, wages, or unemployment compensation from the Department of Housing and Urban Devel- opment pursuant to income verification proce- dures of the Department to disclose such in- formation, upon receipt of the information, to the public housing agency that owns or oper- ates the public housing dwelling unit in which such family resides or that provides the hous- ing assistance under this chapter on behalf of such family, as applicable, or to the owner re- sponsible for determining the participant’s eli- gibility or level of benefits. (2) Families covered A family described in this paragraph is a family that resides in a dwelling unit— (A) that is a public housing dwelling unit; (B) for which tenant-based assistance is provided under section 1437f of this title,5 or (C) for which project-based assistance is provided under section 1437f of this title, sec- tion 1437bb 1 of this title, or section 811.1 (Sept. 1, 1937, ch. 896, title I, § 3, as added Pub. L. 93–383, title II, § 201(a), Aug. 22, 1974, 88 Stat. 654; amended Pub. L. 94–375, § 2(f), Aug. 3, 1976, 90 Stat. 1068; Pub. L. 95–557, title II, § 206(c), Oct. 31, 1978, 92 Stat. 2091; Pub. L. 96–153, title II, § 202(a), Dec. 21, 1979, 93 Stat. 1106; Pub. L. 97–35, title III, § 322(a), Aug. 13, 1981, 95 Stat. 400; Pub. L. 98–181, title I [title II, §§ 202, 206(a)–(c)], Nov. 30, 1983, 97 Stat. 1178, 1179; Pub. L. 98–479, title I, § 102(b)(1)–(3), Oct. 17, 1984, 98 Stat. 2221; Pub. L. 100–242, title I, §§ 102(a), 111, 170(c), Feb. 5, 1988, 101 Stat. 1821, 1823, 1867; renumbered title I and amended Pub. L. 100–358, §§ 4, 5, June 29, 1988, 102 Stat. 680, 681; Pub. L. 101–235, title III, § 302, Dec. 15, 1989, 103 Stat. 2043; Pub. L. 101–625, title V, §§ 515(b), 572, 573(a)–(d), 574, Nov. 28, 1990, 104 Stat. 4199, 4236–4238; Pub. L. 102–550, title I, §§ 102–103(a)(2), 185(c)(4), title VI, §§ 621, 622(c), 625(a)(1), Oct. 28, 1992, 106 Stat. 3683, 3748, 3812, 3817, 3820; Pub. L. 103–233, title III, § 301, Apr. 11, 1994, 108 Stat. 369; Pub. L. 104–99, title IV, § 402(b)(1), (c), Jan. 26, 1996, 110 Stat. 40, 41; Pub. L. 104–330, title V, § 501(b)(1), Oct. 26, 1996, 110 Stat. 4041; Pub. L. 105–276, title V, §§ 506, 507(a), (c), 508(a), (b)(1), (c)(1), (d)(1), 520(a), 523, 524(a), 546, Oct. 21, 1998, 112 Stat. 2523–2529, 2562, 2565–2567, 2604; Pub. L. 106–74, title II, § 214(a), Oct. 20, 1999, 113 Stat. 1074; Pub. L. 106–402, title IV, § 401(b)(7), Oct. 30, 2000, 114 Stat. 1738; Pub. L. 110–289, div. B, title VI, § 2608, July 30, 2008, 122 Stat. 2862; Pub. L. 113–76, div. L, title II, §§ 210, 212, 238(a), Jan. 17, 2014, 128 Stat. 625, 626, 635; Pub. L. 113–235, div. K, title II, § 238, Dec. 16, 2014, 128 Stat. 2758; Pub. L. 114–94, div. G, title LXXVIII, § 78001(a), Dec. 4, 2015, 129 Stat. 1791; Pub. L. 114–201, title I, § 102(a), (c), July 29, 2016, 130 Stat. 786, 788; Pub. L. 116–260, div. Q, title I, §§ 101(b)(1), 103(a), Dec. 27, 2020, 134 Stat. 2163, 2166; Pub. L. 117–328, div. AA, title VI, § 601(a)(1), Dec. 29, 2022, 136 Stat. 5542.) Editorial Notes REFERENCES IN TEXT Section 1437f(c)(3)(B) of this title, referred to in sub- sec. (a)(1), was repealed by Pub. L. 105–276, title V, § 550(a)(3)(A)(ii), Oct. 21, 1998, 112 Stat. 2609. Section 519(d) of the Quality Housing and Work Re- sponsibility Act of 1998, referred to in subsec. (a)(2)(A)(ii), is section 519(d) of Pub. L. 105–276 which is set out as a note below. The effective day of such Act and the effective date of such Act, referred to in subsecs. (a)(2)(A)(ii) and (b)(6)(B)(ii), probably means the general effective date for the Quality Housing and Work Responsibility Act of 1998, Pub. L. 105–276, title V, included in section 503 of the Act which is set out as an Effective Date of 1998 Amendment note under section 1437 of this title. Section 206(d) of the Housing and Urban-Rural Recov- ery Act of 1983, referred to in subsec. (a)(3)(A), is sec- tion 206(d) of Pub. L. 98–181, which is set out as a note below. The Immigration and Nationality Act, referred to in subsec. (a)(3)(B)(i)(I), is act June 27, 1952, ch. 477, 66 Stat. 163, which is classified principally to chapter 12 (§ 1101 et seq.) of Title 8, Aliens and Nationality. For complete classification of this Act to the Code, see Short Title note set out under section 1101 of Title 8 and Tables. The Personal Responsibility and Work Opportunity Reconciliation Act of 1996, referred to in subsec. (a)(3)(B)(i)(I), is Pub. L. 104–193, Aug. 22, 1996, 110 Stat. 2105. Title IV of the Act is classified principally to chapter 14 (§ 1601 et seq.) of Title 8, Aliens and Nation- ality. For complete classification of title IV to the Code, see Tables. The Social Security Act, referred to in subsec. (a)(7)(D), 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. Title XIX of the Act is classified generally to sub- chapter XIX (§ 1396 et seq.) of chapter 7 of this title. For complete classification of this Act to the Code, see sec- tion 1305 of this title and Tables. Page 4539 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437a Section 5 of the Improper Payments Elimination and Recovery Improvement Act of 2012 (Public Law 112–248; 126 Stat. 2392), referred to in subsec. (a)(7)(E), is section 5 of Pub. L. 112–248, which was formerly set out in a note under section 3321 of Title 31, Money and Finance, prior to repeal by Pub. L. 116–117, § 3(a)(3), Mar. 2, 2020, 134 Stat. 133. See section 3354 of Title 31. Section 503(a) of the Quality Housing and Work Re- sponsibility Act of 1998, referred to in subsec. (b)(6)(B)(ii), is section 503(a) of Pub. L. 105–276 which is set out as an Effective Date of 1998 Amendment note under section 1437 of this title. Section 1437bb of this title, referred to in subsec. (d)(2)(C), was repealed by Pub. L. 104–330, title V, § 501(a), Oct. 26, 1996, 110 Stat. 4041. Section 811, referred to in subsec. (d)(2)(C), means sec- tion 811 of the United States Housing Act of 1937, but that Act does not contain a section 811. PRIOR PROVISIONS A prior section 3 of act Sept. 1, 1937, ch. 896, 50 Stat. 889, as amended, established the United States Housing Authority and was classified to section 1403 of this title, prior to the general revision of this chapter by Pub. L. 93–383. Prior similar provisions were contained in section 2 of act Sept. 1, 1937, ch. 896, 50 Stat. 888, which was clas- sified to section 1402 of this title prior to the general revision of this chapter by Pub. L. 93–383. AMENDMENTS 2022—Subsec. (a)(9). Pub. L. 117–328 added par. (9). 2020—Subsec. (a)(8). Pub. L. 116–260, § 101(b)(1), added par. (8). Subsec. (b)(3)(A). Pub. L. 116–260, § 103(a), in first sen- tence, added cl. (v) after ‘‘tenant family,’’ and redesig- nated former cl. (v) as (vi) and, in second sentence, in- serted ‘‘or (vi)’’ after ‘‘clause (v)’’. 2016—Subsec. (a)(1). Pub. L. 114–201, § 102(a)(1)(A), sub- stituted ‘‘pursuant to paragraph (6)’’ for ‘‘at least annu- ally’’ in introductory provisions. Subsec. (a)(6), (7). Pub. L. 114–201, § 102(a)(1)(B), added pars. (6) and (7). Subsec. (b)(4), (5). Pub. L. 114–201, § 102(c), added pars. (4) and (5) and struck out former pars. (4) and (5) which defined the terms ‘‘income’’ and ‘‘adjusted income’’, re- spectively. Subsecs. (d) to (f). Pub. L. 114–201, § 102(a)(2), (3), re- designated subsec. (f) as (d) and struck out former sub- secs. (d) and (e) which related to disallowance of earned income from rent determinations and individual sav- ings accounts, respectively. 2015—Subsec. (a)(1). Pub. L. 114–94 inserted before pe- riod at end of second sentence ‘‘; except that, in the case of any family with a fixed income, as defined by the Secretary, after the initial review of the family’s income, the public housing agency or owner shall not be required to conduct a review of the family’s income for any year for which such family certifies, in accord- ance with such requirements as the Secretary shall es- tablish, which shall include policies to adjust for infla- tion-based income changes, that 90 percent or more of the income of the family consists of fixed income, and that the sources of such income have not changed since the previous year, except that the public housing agen- cy or owner shall conduct a review of each such fam- ily’s income not less than once every 3 years’’. 2014—Subsec. (a)(2)(B)(i). Pub. L. 113–235, § 238(3), sub- stituted ‘‘If’’ for ‘‘Public housing agencies must comply by June 1, 2014, with the requirement of this clause, ex- cept that if’’ in concluding provisions. Pub. L. 113–235, § 238(1), substituted ‘‘which—’’ for ‘‘which shall not be lower than 80 percent of the appli- cable fair market rental established under section 1437f(c) of this title and which shall—’’ in introductory provisions, added subcl. (I), and struck out former subcl. (I) which read as follows: ‘‘be based on the rental value of the unit, as determined by the public housing agency; and’’. Pub. L. 113–76, § 210(2), inserted concluding provisions and struck out former concluding provisions, which read as follows: ‘‘The rental amount for a dwelling unit shall be considered to comply with the requirements of this clause if such amount does not exceed the actual monthly costs to the public housing agency attrib- utable to providing and operating the dwelling unit. The preceding sentence may not be construed to re- quire establishment of rental amounts equal to or based on operating costs or to prevent public housing agencies from developing flat rents required under this clause in any other manner that may comply with this clause.’’ Pub. L. 113–76, § 210(1), in introductory provisions, substituted ‘‘Each’’ for ‘‘Except as otherwise provided under this clause, each’’ and inserted ‘‘not be lower than 80 percent of the applicable fair market rental es- tablished under section 1437f(c) of this title and which shall’’ after ‘‘which shall’’. Subsec. (a)(2)(B)(i)(II). Pub. L. 113–235, § 238(2), in- serted ‘‘shall’’ before ‘‘be designed’’. Subsec. (b)(2). Pub. L. 113–76, § 238(a), designated first sentence as subpar. (A), second sentence as subpar. (B), and remaining sentences as subpar. (D), and added sub- par. (C). Subsec. (b)(6)(A). Pub. L. 113–76, § 212, inserted ‘‘, or a consortium of such entities or bodies as approved by the Secretary’’ before period at end. 2008—Subsec. (b)(4). Pub. L. 110–289 inserted ‘‘or any deferred Department of Veterans Affairs disability ben- efits that are received in a lump sum amount or in pro- spective monthly amounts’’ before ‘‘may not be consid- ered’’. 2000—Subsec. (b)(3)(E)(iii). Pub. L. 106–402 substituted ‘‘section 15002 of this title’’ for ‘‘section 6001 of this title’’. 1999—Subsec. (f)(1). Pub. L. 106–74, § 214(a)(1), inserted ‘‘, or the owner responsible for determining the partici- pant’s eligibility or level of benefits,’’ after ‘‘A public housing agency’’ and ‘‘, or to the owner responsible for determining the participant’s eligibility or level of ben- efits’’ before period at end. Subsec. (f)(2)(C). Pub. L. 106–74, § 214(a)(2), added sub- par. (C). 1998—Subsec. (a)(1). Pub. L. 105–276, § 507(c), inserted ‘‘and subject to the requirement under paragraph (3)’’ after ‘‘paragraph (2)’’ in third sentence. Subsec. (a)(2). Pub. L. 105–276, § 523, amended par. (2) generally. For prior text, see 1996 Amendment note below. Subsec. (a)(3). Pub. L. 105–276, § 507(a), added par. (3). Subsec. (a)(4), (5). Pub. L. 105–276, § 524(a), added pars. (4) and (5). Subsec. (b)(1). Pub. L. 105–276, § 506(1), inserted after second sentence ‘‘The term ‘public housing’ includes dwelling units in a mixed finance project that are as- sisted by a public housing agency with capital or oper- ating assistance.’’ Subsec. (b)(2). Pub. L. 105–276, § 508(c)(1), substituted ‘‘limits for Westchester and Rockland Counties’’ for ‘‘limits for Westchester County’’, inserted ‘‘each’’ be- fore ‘‘such county’’, substituted ‘‘include Westchester or Rockland Counties’’ for ‘‘include Westchester Coun- ty’’ and ‘‘included Westchester and Rockland Counties’’ for ‘‘included Westchester County’’, and inserted at end ‘‘In determining areas that are designated as difficult development areas for purposes of the low-income hous- ing tax credit, the Secretary shall include Westchester and Rockland Counties, New York, in the New York City metropolitan area.’’ Subsec. (b)(3)(A). Pub. L. 105–276, § 506(2)(A), struck out at end ‘‘In determining priority for admission to housing under this chapter, the Secretary shall give preference to single persons who are elderly, disabled, or displaced persons before single persons who are eligi- ble under clause (v) of the first sentence.’’ Subsec. (b)(3)(B). Pub. L. 105–276, § 506(2)(B), sub- stituted ‘‘public housing agency plan’’ for ‘‘regulations of the Secretary’’ in second sentence. Subsec. (b)(3)(E). Pub. L. 105–276, § 506(3), inserted at end ‘‘Notwithstanding any other provision of law, no Page 4540 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437a individual shall be considered a person with disabil- ities, for purposes of eligibility for low-income housing under this subchapter, solely on the basis of any drug or alcohol dependence. The Secretary shall consult with other appropriate Federal agencies to implement the preceding sentence.’’ Subsec. (b)(5). Pub. L. 105–276, § 508(a), amended par. (5) generally, substituting present provisions for provi- sions which had defined ‘‘adjusted income’’ as income which remained after excluding $550 for each member of family in household under 18 years of age, disabled, or a student, $400 for any elderly or disabled family, the amount by which medical and related expenses exceed- ed 3 percent of income, child care expenses, 10 percent of earned income, and any payment made for support and maintenance of nonresident child, spouse, or former spouse. Subsec. (b)(6). Pub. L. 105–276, § 546, amended par. (6) generally. Prior to amendment, par. (6) read as follows: ‘‘The term ‘public housing agency’ means any State, county, municipality, or other governmental entity or public body (or agency or instrumentality thereof) which is authorized to engage in or assist in the devel- opment or operation of low-income housing.’’ Subsec. (b)(9) to (13). Pub. L. 105–276, § 506(4), added pars. (9) to (13). Subsec. (c). Pub. L. 105–276, § 508(b)(1)(A), which di- rected the amendment of subsec. (c) by striking out the undesignated par. after par. (3), was executed by strik- ing out concluding provisions after par. (5), to reflect the probable intent of Congress. Concluding provisions read as follows: ‘‘The earnings of and benefits to any public housing resident resulting from participation in a program providing employment training and sup- portive services in accordance with the Family Support Act of 1988, section 1437t of this title, or any com- parable Federal, State, or local law shall not be consid- ered as income for the purposes of determining a limi- tation on the amount of rent paid by the resident dur- ing— ‘‘(1) the period that the resident participates in such program; and ‘‘(2) the period that— ‘‘(A) begins with the commencement of employ- ment of the resident in the first job acquired by the person after completion of such program that is not funded by assistance under this chapter; and ‘‘(B) ends on the earlier of— ‘‘(i) the date the resident ceases to continue em- ployment without good cause as the Secretary shall determine; or ‘‘(ii) the expiration of the 18-month period be- ginning on the date referred to in subparagraph (A).’’ Subsec. (c)(1). Pub. L. 105–276, § 520(a), inserted before period at end of second sentence ‘‘, but does not include the costs associated with the demolition of or remedi- ation of environmental hazards associated with public housing units that will not be replaced on the project site, or other extraordinary site costs as determined by the Secretary’’. Subsecs. (d), (e). Pub. L. 105–276, § 508(b)(1)(B), added subsecs. (d) and (e). Subsec. (f). Pub. L. 105–276, § 508(d)(1), added subsec. (f). 1996—Subsec. (a)(2). Pub. L. 104–99, § 402(b)(1), (f), tem- porarily amended par. (2) generally, substituting ‘‘(2) Notwithstanding paragraph (1), a public housing agency may— ‘‘(A) adopt ceiling rents that reflect the reasonable market value of the housing, but that are not less than the monthly costs— ‘‘(i) to operate the housing of the agency; and ‘‘(ii) to make a deposit to a replacement reserve (in the sole discretion of the public housing agen- cy); and ‘‘(B) allow families to pay ceiling rents referred to in subparagraph (A), unless, with respect to any fam- ily, the ceiling rent established under this paragraph would exceed the amount payable as rent by that family under paragraph (1).’’ for ‘‘(2)(A) Any public housing agency may provide that each family residing in a public housing project owned and operated by such agency (or in low-income housing assisted under section 1437f of this title that contains more than 2,000 dwelling units) shall pay as monthly rent an amount determined by such agency to be appro- priate that does not exceed a maximum amount that— ‘‘(i) is established by such agency and approved by the Secretary; ‘‘(ii) is not more than the amount payable as rent by such family under paragraph (1); and ‘‘(iii) is not less than the average monthly amount of debt service and operating expenses attributable to dwelling units of similar size in public housing projects owned and operated by such agency. ‘‘(B) The terms of all ceiling rents established prior to December 15, 1989, shall be extended without time limitation.’’ See Effective and Termination Dates of 1996 Amendments note below. Subsec. (b)(5)(F). Pub. L. 104–330, § 501(b)(1)(A)(i), in- serted ‘‘and’’ after semicolon. Subsec. (b)(5)(G). Pub. L. 104–330, § 501(b)(1)(A)(ii), (iii), redesignated subpar. (H) as (G) and struck out former subpar. (G) which read as follows: ‘‘excessive travel expenses, not to exceed $25 per family per week, for employment- or education-related travel, except that this subparagraph shall apply only to families as- sisted by Indian housing authorities; and’’. Subsec. (b)(5)(H). Pub. L. 104–330, § 501(b)(1)(A)(iii), re- designated subpar. (H) as (G). Pub. L. 104–99, § 402(c), (f), temporarily added subpar. (H) which read ‘‘for public housing, any other adjust- ments to earned income established by the public hous- ing agency. If a public housing agency adopts other ad- justments to income pursuant to subparagraph (H), the Secretary shall not take into account any reduction of or increase in the public housing agency’s per unit dwelling rental income resulting from those adjust- ments when calculating the contributions under sec- tion 1437g of this title for the public housing agency for the operation of the public housing.’’ See Effective and Termination Dates of 1996 Amendments note below. Subsec. (b)(6). Pub. L. 104–330, § 501(b)(1)(B), struck out at end ‘‘The term includes any Indian housing au- thority.’’ Subsec. (b)(7). Pub. L. 104–330, § 501(b)(1)(C), inserted ‘‘and’’ before ‘‘the Trust’’ and struck out ‘‘, and Indian tribes’’ after ‘‘Pacific Islands’’. Subsec. (b)(9) to (12). Pub. L. 104–330, § 501(b)(1)(D), struck out pars. (9) to (12) which read as follows: ‘‘(9) The term ‘Indian’ means any person recognized as being an Indian or Alaska Native by an Indian tribe, the Federal Government, or any State. ‘‘(10) The term ‘Indian area’ means the area within which an Indian housing authority is authorized to pro- vide low-income housing. ‘‘(11) The term ‘Indian housing authority’ means any entity that— ‘‘(A) is authorized to engage in or assist in the de- velopment or operation of low-income housing for In- dians; and ‘‘(B) is established— ‘‘(i) by exercise of the power of self-government of an Indian tribe independent of State law; or ‘‘(ii) by operation of State law providing specifi- cally for housing authorities for Indians, including regional housing authorities in the State of Alaska. ‘‘(12) The term ‘Indian tribe’ means any tribe, band, pueblo, group, community, or nation of Indians or Alas- ka Natives.’’ 1994—Subsec. (b)(3)(B). Pub. L. 103–233 substituted ‘‘includes families with children and’’ for ‘‘means fami- lies with children’’. 1992—Subsec. (a)(1). Pub. L. 102–550, § 185(c)(4), sub- stituted ‘‘section 1437f(o) or (y) of this title or paying rent under section 1437f(c)(3)(B) of this title’’ for ‘‘sec- tion 1437f(o) of this title’’. Subsec. (a)(2)(A). Pub. L. 102–550, § 102(a), struck out ‘‘for not more than a 5-year period’’ after ‘‘monthly rent’’. Page 4541 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437a Subsec. (a)(2)(B). Pub. L. 102–550, § 102(b), struck out first sentence which read as follows: ‘‘The 5-year limi- tation established in subparagraph (A) shall not apply to any family residing in a public housing project ad- ministered by an Indian public housing agency.’’ and substituted ‘‘without time limitation’’ for ‘‘for the 5- year period beginning on December 15, 1989’’. Subsec. (b)(3). Pub. L. 102–550, § 621, amended par. (3) generally, substituting present provisions for provi- sions relating to families consisting of single persons, elderly families, handicapped persons, displaced per- sons, and families with household heads 50 years old or older and the priorities for admission of such families and persons to housing under this chapter. Subsec. (b)(4). Pub. L. 102–550, § 103(a)(1), inserted ‘‘and any amounts which would be eligible for exclusion under section 1382b(a)(7) of this title’’ after ‘‘family’’. Subsec. (b)(5)(B). Pub. L. 102–550, § 625(a)(1), inserted ‘‘or disabled’’ after ‘‘elderly’’. Subsec. (b)(5)(D). Pub. L. 102–550, § 103(a)(2)(A), added subpar. (D) and struck out former subpar. (D) which read as follows: ‘‘(i) child care expenses to the extent necessary to enable another member of the family to be employed or to further his or her education; or (ii) ex- cessive travel expenses, not to exceed $25 per family per week, for employment or education related travel, ex- cept that this clause shall apply only to families as- sisted by Indian housing authorities;’’. Subsec. (b)(5)(G). Pub. L. 102–550, § 103(a)(2)(B)–(D), added subpar. (G). Subsec. (c)(4), (5). Pub. L. 102–550, § 622(c), which di- rected the amendment of subsec. (c) by inserting pars. (4) and (5) after ‘‘project.’’, was executed by making the insertion after ‘‘project.’’ at the end of par. (3), to re- flect the probable intent of Congress. 1990—Pub. L. 101–625, § 515(b), added concluding undes- ignated par. directing that earnings and benefits to public housing residents resulting from participation in programs providing employment training and sup- portive services not be considered as income. Subsec. (a)(1). Pub. L. 101–625, § 572(1), substituted ‘‘low-income families’’ for ‘‘lower income families’’ in introductory provisions. Subsecs. (a)(2)(A), (b)(1). Pub. L. 101–625, § 572(2), sub- stituted ‘‘low-income housing’’ for ‘‘lower income hous- ing’’ wherever appearing. Subsec. (b)(2). Pub. L. 101–625, § 573(d), inserted sen- tences at end relating to determination or establish- ment of median incomes and income ceilings and limits for Westchester County and for metropolitan statis- tical areas outside Westchester County. Pub. L. 101–625, § 572(1), substituted ‘‘low-income fam- ilies’’ for ‘‘lower income families’’ wherever appearing. Subsec. (b)(3). Pub. L. 101–625, § 574, inserted sentence at end relating to effect of temporary absence of child from the home due to placement in foster care on con- siderations of family composition and size. Pub. L. 101–625, § 573(a), substituted ‘‘(D) and any other single persons. In no event may any single person under clause (D) be provided a housing unit assisted under this chapter of 2 bedrooms or more.’’ for ‘‘(D) other single persons in circumstances described in reg- ulations of the Secretary.’’ in first sentence, struck out after first sentence ‘‘In no event shall more than 15 per centum of the units under the jurisdiction of any public housing agency be occupied by single persons under clause (D).’’, and struck out third from last sentence which was executed (to reflect the probable intent of Congress) by striking out third sentence from end which read as follows: ‘‘The Secretary may increase the limitation described in the second sentence of this paragraph to not more than 30 per centum if, following consultation with the public housing agency involved, the Secretary determines that the dwelling units in- volved are neither being occupied, nor are likely to be occupied within the next 12 months, by families or per- sons described in clauses (A), (B), and (C), due to the condition or location of such dwelling units, and that such dwelling units may be occupied if made available to single persons described in clause (D).’’ Subsec. (b)(4). Pub. L. 101–625, § 573(b), inserted before period at end ‘‘, except that any amounts not actually received by the family may not be considered as in- come under this paragraph’’. Subsec. (b)(5)(A). Pub. L. 101–625, § 573(c)(1), sub- stituted ‘‘$550’’ for ‘‘$480’’. Subsec. (b)(5)(C). Pub. L. 101–625, § 573(c)(2), struck out ‘‘elderly’’ before ‘‘family’’ in cl. (i) and struck out ‘‘and’’ at end. Subsec. (b)(5)(E), (F). Pub. L. 101–625, § 573(c)(3), added subpars. (E) and (F). Subsecs. (b)(6), (10), (11)(A), (c). Pub. L. 101–625, § 572(2), substituted ‘‘low-income housing’’ for ‘‘lower income housing’’ wherever appearing. 1989—Subsec. (a)(2)(A). Pub. L. 101–235, § 302(1), sub- stituted ‘‘5-year period’’ for ‘‘3-year period’’. Subsec. (a)(2)(B). Pub. L. 101–235, § 302(2), substituted ‘‘5-year limitation’’ for ‘‘3-year limitation’’ and in- serted at end ‘‘The terms of all ceiling rents established prior to December 15, 1989, shall be extended for the 5- year period beginning on December 15, 1989.’’ 1988—Subsec. (a). Pub. L. 100–242, § 102(a), designated existing provisions as par. (1), substituted ‘‘Except as provided in paragraph (2), a’’ for ‘‘A’’, redesignated former pars. (1) to (3) as subpars. (A) to (C), respec- tively, and added par. (2). Subsec. (b)(3). Pub. L. 100–242, § 170(c), in cl. (A), sub- stituted ‘‘sixty-two years of age,’’ for ‘‘sixty-two years of age or’’, and ‘‘, has a developmental disability as de- fined in section 6001(7) of this title’’ for ‘‘or in section 102 of the Developmental Disabilities Services and Fa- cilities Construction Amendments of 1970’’. Pub. L. 100–242, § 111, inserted provisions relating to determination of priority admission to public housing projects designed for elderly families. Subsec. (b)(5)(D). Pub. L. 100–358, § 4(a), designated ex- isting provisions as cl. (i) and added cl. (ii). Subsec. (b)(6). Pub. L. 100–358, § 4(b), inserted at end ‘‘The term includes any Indian housing authority.’’ Subsec. (b)(7). Pub. L. 100–358, § 4(c), struck out ‘‘, bands, groups, and Nations, including Alaska Indi- ans, Aleuts, and Eskimos, of the United States’’ after ‘‘and Indian tribes’’. Subsec. (b)(9) to (12). Pub. L. 100–358, § 4(d)–(g), added pars. (9) to (12). 1984—Subsec. (b)(2). Pub. L. 98–479, § 102(b)(1), inserted provision at end that such ceilings shall be established in consultation with the Secretary of Agriculture for any rural area, as defined in section 1490 of this title, taking into account the subsidy characteristics and types of programs to which such ceilings apply. Subsec. (b)(4). Pub. L. 98–479, § 102(b)(2), inserted ‘‘, in consultation with the Secretary of Agriculture’’ at end. Subsec. (b)(5)(C). Pub. L. 98–479, § 102(b)(3), designated existing provision as cl. (i), added cl. (ii), and inserted ‘‘the amount by which the aggregate of the following expenses of the family’’ in provisions preceding cl. (i). 1983—Subsec. (a). Pub. L. 98–181, § 206(a), in provisions preceding par. (1), inserted provision requiring annual review of family income, and inserted ‘‘(other than a family assisted under section 1437f(o) of this title)’’. Subsec. (b)(2). Pub. L. 98–181, § 206(b), qualified the term ‘‘very low-income families’’ in authorizing the Secretary to establish, where necessary, variations in income ceilings higher or lower than 50 per centum of the median for the area. Subsec. (b)(3). Pub. L. 98–181, § 202, inserted provision at end of par. (3) authorizing increase from 15 to 30 per centum in the single person occupancy limitation for nonoccupancy of the involved dwelling units. Subsec. (b)(5). Pub. L. 98–181, § 206(c), amended par. (5) generally, substituting provisions designating cls. (A) to (D) for prior exclusion from ‘‘adjusted income’’ of such amounts or types of income as the Secretary might prescribe, taking into account the number of minor children and other appropriate factors. 1981—Pub. L. 97–35 added subsecs. (a) and (c) and des- ignated provisions constituting former section as sub- sec. (b), and in subsec. (b) as so designated, substituted provisions defining ‘‘lower income housing’’, ‘‘lower in- Page 4542 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437a come families’’, ‘‘families’’, ‘‘income’’, ‘‘adjusted in- come’’, ‘‘public housing agency’’, ‘‘State’’, and ‘‘Sec- retary’’ for provisions defining ‘‘low-income housing’’, ‘‘low-income families’’, ‘‘development’’, ‘‘operation’’, ‘‘acquisition cost’’, ‘‘public housing agency’’, ‘‘State’’, ‘‘Secretary’’, and ‘‘low-income housing project’’. 1979—Par. (1). Pub. L. 96–153 substituted provisions that the rental for a dwelling shall not exceed certain portion of the resident family’s income to be estab- lished by the Secretary, and that in the case of a very low income family 25 per centum and in other cases 30 per centum of family income for provisions that such rental shall not exceed one-fourth of the family’s in- come as defined by the Secretary. 1978—Par. (2)(D). Pub. L. 95–557 substituted ‘‘15 per cent’’ for ‘‘10 per cent’’. 1976—Par. (2). Pub. L. 94–375 struck out ‘‘and’’ before cl. (C), added cl. (D), and two provisos relating to the percentage of units to be occupied by single persons and the priority to be given to single persons who are elderly, handicapped, or displaced, following cl. (D). Statutory Notes and Related Subsidiaries EFFECTIVE DATE OF 2022 AMENDMENT Amendment by Pub. L. 117–328 effective 2 years after Dec. 29, 2022, see section 601(h) of div. AA of Pub. L. 117–328, set out as a note under section 1701q of Title 12, Banks and Banking. EFFECTIVE DATE OF 2020 AMENDMENT Amendment by section 101(b)(1) of div. Q of Pub. L. 116–260 effective 2 years after Dec. 27, 2020, see section 101(h) of div. Q of Pub. L. 116–260, set out as a note under section 1701q of Title 12, Banks and Banking. Pub. L. 116–260, div. Q, title I, § 103(d), Dec. 27, 2020, 134 Stat. 2170, provided that: ‘‘The amendments made by this section [amending this section and section 1437f of this title] shall not apply to housing choice voucher as- sistance made available pursuant to section 8(x) of the United States Housing Act of 1937 (42 U.S.C. 1437f(x)) that is in use on behalf of an assisted family as of the date of the enactment of this Act [Dec. 27, 2020].’’ EFFECTIVE DATE OF 2016 AMENDMENT Pub. L. 114–201, title I, § 102(h), July 29, 2016, 130 Stat. 791, provided that: ‘‘The Secretary of Housing and Urban Development shall issue notice or regulations to implement this section [amending this section and sec- tion 1437f of this title and enacting provisions set out as a note below] and this section shall take effect after such issuance, except that this section may only take effect upon the commencement of a calendar year.’’ [Amendment by section 102 effective Jan. 1, 2024, based on notice issued Feb. 14, 2023, see 88 F.R. 9600, as cor- rected Feb. 28, 2023, 88 F.R. 12559.] 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. Pub. L. 105–276, title V, § 507(d), Oct. 21, 1998, 112 Stat. 2526, provided that: ‘‘The amendments under this sec- tion [amending this section] are made on, and shall apply beginning upon, the date of the enactment of this Act [Oct. 21, 1998].’’ Pub. L. 105–276, title V, § 508(c)(2), Oct. 21, 1998, 112 Stat. 2529, provided that: ‘‘The amendments made by this paragraph [probably means this subsection, amending this section] are made on, and shall apply be- ginning upon, the date of the enactment of this Act [Oct. 21, 1998].’’ Pub. L. 105–276, title V, § 524(b), Oct. 21, 1998, 112 Stat. 2568, provided that: ‘‘The amendment made by this paragraph [probably means this section, amending this section] is made on, and shall apply beginning upon, the date of the enactment of this Act [Oct. 21, 1998].’’ EFFECTIVE AND TERMINATION DATES OF 1996 AMENDMENTS Pub. L. 105–276, title V, § 514(f), Oct. 21, 1998, 112 Stat. 2548, provided that: ‘‘Section 402 of The Balanced Budg- et Downpayment Act, I [Pub. L. 104–99, see note below], and the amendments made by such section shall cease to be effective on the date of the enactment of this Act [Oct. 21, 1998]. Notwithstanding the inclusion in this Act [see Tables for classification] of any provision ex- tending the effectiveness of such section or such amendments, such provision included in this Act shall not take effect.’’ Amendment by Pub. L. 104–330 effective Oct. 1, 1997, except as otherwise expressly provided, see section 107 of Pub. L. 104–330, set out as an Effective Date note under section 4101 of Title 25, Indians. Pub. L. 104–99, title IV, § 402(f), Jan. 26, 1996, 110 Stat. 43, as amended by Pub. L. 104–204, title II, § 201(c)(2), Sept. 26, 1996, 110 Stat. 2893; Pub. L. 105–65, title II, § 201(d)(2), Oct. 27, 1997, 111 Stat. 1364, provided that: ‘‘This section [amending this section, sections 1437d to 1437f, 1437n, 1437v, and 13615 of this title, and section 1701s of Title 12, Banks and Banking, enacting provi- sions set out as notes under this section and sections 1437 and 1437d of this title, and amending provisions set out as a note under section 1437f of this title] shall be effective upon the enactment of this Act [Jan. 26, 1996] and only for fiscal years 1996, 1997, and 1998.’’ EFFECTIVE DATE OF 1992 AMENDMENT Pub. L. 102–550, title I, § 103(a)(3), Oct. 28, 1992, 106 Stat. 3684, provided that: ‘‘To the extent that the amendments made by paragraphs (1) and (2) [amending this section] result in additional costs under this title [see Tables for classification], such amendments shall be effective only to the extent that amounts to cover such additional costs are provided in advance in appro- priation Acts.’’ Amendment by subtitles B through F of title VI [§§ 621–685] of Pub. L. 102–550 applicable upon expiration of 6-month period beginning Oct. 28, 1992, except as oth- erwise provided, see section 13642 of this title. EFFECTIVE DATE OF 1990 AMENDMENT Pub. L. 101–625, title V, § 573(f), Nov. 28, 1990, 104 Stat. 4237, provided that: ‘‘The Secretary shall issue regula- tions implementing subsections (a) and (d) [sic] the amendments made by this section [amending this sec- tion] not later than the expiration of the 90-day period beginning on the date of the enactment of this Act [Nov. 28, 1990]. The regulations may not take effect until after September 30, 1991.’’ EFFECTIVE DATE OF 1988 AMENDMENT Pub. L. 100–358, § 6, June 29, 1988, 102 Stat. 681, pro- vided that: ‘‘The Secretary of Housing and Urban De- velopment may carry out programs to provide lower in- come housing on Indian reservations and other Indian areas only in accordance with the amendments made by this Act [enacting sections 1437aa to 1437ee of this title, amending this section and section 1437c of this title, and enacting provisions set out as a note under section 1437 of this title], commencing on whichever of the following occurs earlier: ‘‘(1) EFFECTIVE DATE OF REGULATIONS.—The effec- tive date of regulations issued under section 205 of the United States Housing Act of 1937 [former section 1437ee of this title]. ‘‘(2) 90 DAYS.—The expiration of the 90-day period beginning on the date of the enactment of this Act [June 29, 1988].’’ 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. Page 4543 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437a EFFECTIVE DATE OF 1979 AMENDMENT Pub. L. 96–153, title II, § 202(c), Dec. 21, 1979, 93 Stat. 1106, which provided that amendment by section 202(a) of Pub. L. 96–153 (amending this section and section 1437f of this title) shall become effective on Jan. 1, 1980, except that the amount of the tenant contribution re- quired of families whose occupancy of housing units as- sisted under this chapter commenced prior to that date shall be determined in accordance with the provisions of this chapter in effect on Dec. 31, 1979, so long as such occupancy was continuous thereafter, was repealed by Pub. L. 97–35, title III, § 322(h)(1), Aug. 13, 1981, 95 Stat. 404. EFFECTIVE DATE OF 1978 AMENDMENT Amendment by Pub. L. 95–557 effective Oct. 1, 1978, see section 206(h) of Pub. L. 95–557, set out as a note under section 1437c of this title. EFFECTIVE DATE Section effective on such date or dates as the Sec- retary of Housing and Urban Development shall pre- scribe, but not later than eighteen months after Aug. 22, 1974, except that all of the provisions of par. (1) shall become effective on the same date, see section 201(b) of Pub. L. 93–383, set out as a note under section 1437 of this title. The Department of Housing and Urban Development adopted an interim rule, 24 C.F.R. 860.409, Sept. 26, 1975, 40 F.R. 44326, which provided: ‘‘The effective date of section 3(1) of the United States Housing Act of 1937, as amended [par. (1) of this section], shall be the date that these regulations [sections 860.401 to 860.409 of Title 24, C.F.R.] are published in the Federal Register (Sep- tember 26, 1975).’’ REGULATIONS Pub. L. 115–31, div. K, title II, § 240, May 5, 2017, 131 Stat. 789, provided that: ‘‘The Secretary shall establish by notice such requirements as may be necessary to implement section 78001 of title LXXVIII of the Fixing America’s Surface Transportation Act (Public Law 114–94) [amending this section and section 1437f of this title], and the notice shall take effect upon issuance: Provided, That the Secretary shall commence rule- making based on the initial notice no later than the ex- piration of the 6-month period following issuance of the notice and the rulemaking shall allow for the oppor- tunity for public comment.’’ Pub. L. 113–76, div. L, title II, § 243, Jan. 17, 2014, 128 Stat. 637, provided that: ‘‘The Secretary shall establish by notice such requirements as may be necessary to implement sections 210, 212, 220, 238, and 242 [amending this section and sections 1437f and 1437n of this title and enacting provisions set out as a note under section 1437f of this title] under this title and the notice shall take effect upon issuance: Provided, That the Secretary shall commence rulemaking based on the initial notice no later than the expiration of the 6-month period fol- lowing issuance of the notice and the rulemaking shall allow for the opportunity for public comment.’’ Pub. L. 104–99, title IV, § 402(b)(2), Jan. 26, 1996, 110 Stat. 41, provided that: ‘‘(A) IN GENERAL.—The Secretary shall, by regulation, after notice and an opportunity for public comment, es- tablish such requirements as may be necessary to carry out section 3(a)(2)(A) of the United States Housing Act of 1937 [42 U.S.C. 1437a(a)(2)(A)], as amended by para- graph (1). ‘‘(B) TRANSITION RULE.—Prior to the issuance of final regulations under paragraph (1), a public housing agen- cy may implement ceiling rents, which shall be not less than the monthly costs to operate the housing of the agency and— ‘‘(i) determined in accordance with section 3(a)(2)(A) of the United States Housing Act of 1937, as that section existed on the day before enactment of this Act [Jan. 26, 1996]; ‘‘(ii) equal to the 95th percentile of the rent paid for a unit of comparable size by tenants in the same pub- lic housing project or a group of comparable projects totaling 50 units or more; or ‘‘(iii) equal to the fair market rent for the area in which the unit is located.’’ [Section 402(b)(2) of Pub. L. 104–99, set out above, ef- fective Jan. 26, 1996, and only for fiscal years 1996, 1997, and 1998, and to cease to be effective Oct. 21, 1998, see Effective and Termination Dates of 1996 Amendments notes above.] Pub. L. 102–550, title I, § 191, Oct. 28, 1992, 106 Stat. 3750, provided that: ‘‘The Secretary of Housing and Urban Development shall issue any final regulations necessary to implement the provisions of this title [see Tables for classification] and the amendments made by this title not later than the expiration of the 180-day period beginning on the date of the enactment of this Act [Oct. 28, 1992], except as expressly provided other- wise in this title and the amendments made by this title. Such regulations shall be issued after notice and opportunity for public comment pursuant to the provi- sions of section 553 of title 5, United States Code (not- withstanding subsections (a)(2), (b)(B), and (d)(3) of such section).’’ SAVINGS PROVISION Pub. L. 105–276, title V, § 508(b)(2), Oct. 21, 1998, 112 Stat. 2528, provided that: ‘‘Notwithstanding the amend- ment made by paragraph (1) [amending this section], the provisions of the undesignated paragraph at the end of section 3(c)(3) of the United States Housing Act of 1937 [see 1998 and 1992 Amendment notes above], as such section was in effect immediately before the enactment of this Act [Oct. 21, 1998], shall continue to apply until the effective date under section 503 of this Act [set out as a note under section 1437 of this title]. Notwith- standing the amendment made by subsection (a) of this section [amending this section], nor the applicability under section 402(f) of The Balanced Budget Downpay- ment Act, I [Pub. L. 104–99] (42 U.S.C. 1437a note) of the amendments made by such section 402 [see Effective and Termination Dates of 1996 Amendments note set out above], nor any repeal of such section 402(f), the provisions of section 3(b)(5)(G) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)(5)(G)), as such section was in effect immediately before the date of the enactment of this Act, shall continue to apply until the effective date under section 503 of this Act.’’ CONSTRUCTION OF 2022 AMENDMENT Nothing in amendment made by Pub. L. 117–328 to be construed to preempt or limit applicability of certain State or local laws relating to smoke alarms, see sec- tion 601(i) of div. AA of Pub. L. 117–328, set out as a note under section 1701q of Title 12, Banks and Banking. CONSTRUCTION OF 2020 AMENDMENT Pub. L. 116–260, div. Q, title I, § 101(j), Dec. 27, 2020, 134 Stat. 2165, provided that: ‘‘Nothing in the amendments made by this section [amending this section, sections 1437f, 1484, 1485, 8013, and 12905 of this title, and section 1701q of Title 12, Banks and Banking] shall be construed to preempt or limit the applicability of any State or local law relating to the installation and maintenance of carbon monoxide alarms or detectors in housing that requires standards that are more stringent than the standards described in the amendments made by this section.’’ CARBON MONOXIDE ALARMS OR DETECTORS IN FEDERALLY ASSISTED HOUSING Pub. L. 116–260, div. Q, title I, § 101(a), Dec. 27, 2020, 134 Stat. 2162, provided that: ‘‘(a) FINDINGS.—Congress finds that— ‘‘(1) carbon monoxide alarms are not required by federally assisted housing programs, when not re- quired by State or local codes; ‘‘(2) numerous federally assisted housing residents have lost their lives due to carbon monoxide poi- soning; Page 4544 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437a ‘‘(3) the effects of carbon monoxide poisoning occur immediately and can result in death in a matter of minutes; ‘‘(4) carbon monoxide exposure can cause perma- nent brain damage, life-threatening cardiac com- plications, fetal death or miscarriage, and death, among other harmful health conditions; ‘‘(5) carbon monoxide poisoning is especially dan- gerous for unborn babies, children, elderly individ- uals, and individuals with cardiovascular disease, among others with chronic health conditions; ‘‘(6) the majority of the 4,600,000 families receiving Federal housing assistance are families with young children, elderly individuals, or individuals with dis- abilities, making them especially vulnerable to car- bon monoxide poisoning; ‘‘(7) more than 400 people die and 50,000 additional people visit the emergency room annually as a result of carbon monoxide poisoning; ‘‘(8) carbon monoxide poisoning is entirely prevent- able and early detection is possible with the use of carbon monoxide alarms; ‘‘(9) the Centers for Disease Control and Prevention warns that carbon monoxide poisoning is entirely preventable and recommends the installation of car- bon monoxide alarms; ‘‘(10) the Office of Lead Hazard Control and Healthy Homes of the Department of Housing and Urban De- velopment recommends the installation of carbon monoxide alarms as a best practice to keep families and individuals safe and to protect health; and ‘‘(11) in order to safeguard the health and well- being of tenants in federally assisted housing, the Federal Government should consider best practices for primary prevention of carbon monoxide-related incidents.’’ GUIDANCE ON HOME HEALTH HAZARD EDUCATION Pub. L. 116–260, div. Q, title I, § 101(g), Dec. 27, 2020, 134 Stat. 2165, provided that: ‘‘The Secretary of Housing and Urban Development shall provide guidance to pub- lic housing agencies (as defined in section 3(b)(6) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)(6)) on how to educate tenants on health hazards in the home, including to carbon monoxide poisoning, lead poisoning, asthma induced by housing-related aller- gens, and other housing-related preventable outcomes, to help advance primary prevention and prevent future deaths and other harms.’’ ADJUSTMENTS TO OPERATING FORMULA DUE TO IMPACT ON PUBLIC HOUSING REVENUES Pub. L. 114–201, title I, § 102(g)(1), July 29, 2016, 130 Stat. 791, provided that: ‘‘If the Secretary of Housing and Urban Development determines that the applica- tion of subsections (a) through (e) of this section [amending this section and section 1437f of this title] results in a material and disproportionate reduction in the rental income of certain public housing agencies during the first year in which such subsections are im- plemented, the Secretary may make appropriate ad- justments in the formula income for such year of those agencies experiencing such a reduction.’’ TRANSITIONAL CEILING RENTS Pub. L. 105–276, title V, § 519(d), Oct. 21, 1998, 112 Stat. 2561, provided that: ‘‘Notwithstanding section 3(a)(1) of the United States Housing Act of 1937 (42 U.S.C. 1437a[(a)](1)), during the period ending upon the later of the implementation of the formulas established pursu- ant to subsections (d)(2) and (e)(2) of [section 9 of] such Act [42 U.S.C. 1437g(d)(2), (e)(2)] (as amended by this section) and October 1, 1999, a public housing agency may take any of the following actions with respect to public housing: ‘‘(1) NEW PROVISIONS.—An agency may— ‘‘(A) adopt and apply ceiling rents that reflect the reasonable market value of the housing, but that are not less than— ‘‘(i) for housing other than housing predomi- nantly for elderly or disabled families (or both), 75 percent of the monthly cost to operate the housing of the agency; ‘‘(ii) for housing predominantly for elderly or disabled families (or both), 100 percent of the monthly cost to operate the housing of the agen- cy; and ‘‘(iii) the monthly cost to make a deposit to a replacement reserve (in the sole discretion of the public housing agency); and ‘‘(B) allow families to pay ceiling rents referred to in subparagraph (A), unless, with respect to any family, the ceiling rent established under this para- graph would exceed the amount payable as rent by that family under paragraph (1). ‘‘(2) CEILING RENTS FROM BALANCED BUDGET ACT, I.— An agency may utilize the authority under section 3(a)(2) of the United States Housing Act of 1937 (42 U.S.C. 1437a(a)(2)), as in effect immediately before the enactment of this Act [Oct. 21, 1998], notwithstanding any amendment to such section made by this Act. ‘‘(3) TRANSITIONAL CEILING RENTS FOR BALANCED BUDGET ACT, I.—An agency may utilize the authority with respect to ceiling rents under section 402(b)(2) of The Balanced Budget Downpayment Act, I [Pub. L. 104–99] (42 U.S.C. 1437a note), notwithstanding any other provision of law (including the expiration of the applicability of such section or the repeal of such sec- tion).’’ CERTAIN PAYMENTS MADE TO VICTIMS OF NAZI PERSE- CUTION DISREGARDED IN DETERMINING ELIGIBILITY FOR AND AMOUNT OF NEED-BASED BENEFITS AND SERVICES Pub. L. 103–286, § 1, Aug. 1, 1994, 108 Stat. 1450, pro- vided that: ‘‘(a) IN GENERAL.—Payments made to individuals be- cause of their status as victims of Nazi persecution shall be disregarded in determining eligibility for and the amount of benefits or services to be provided under any Federal or federally assisted program which pro- vides benefits or services based, in whole or in part, on need. ‘‘(b) APPLICABILITY.—Subsection (a) shall apply to de- terminations made on or after the date of the enact- ment of this Act [Aug. 1, 1994] with respect to payments referred to in subsection (a) made before, on, or after such date. ‘‘(c) PROHIBITION AGAINST RECOVERY OF VALUE OF EX- CESSIVE BENEFITS OR SERVICES PROVIDED DUE TO FAIL- URE TO TAKE ACCOUNT OF CERTAIN PAYMENTS MADE TO VICTIMS OF NAZI PERSECUTION.—No officer, agency, or instrumentality of any government may attempt to re- cover the value of excessive benefits or services pro- vided before the date of the enactment of this Act [Aug. 1, 1994] under any program referred to in subsection (a) by reason of any failure to take account of payments referred to in subsection (a). ‘‘(d) NOTICE TO INDIVIDUALS WHO MAY HAVE BEEN DE- NIED ELIGIBILITY FOR BENEFITS OR SERVICES DUE TO THE FAILURE TO DISREGARD CERTAIN PAYMENTS MADE TO VICTIMS OF NAZI PERSECUTION.—Any agency of govern- ment that has not disregarded payments referred to in subsection (a) in determining eligibility for a program referred to in subsection (a) shall make a good faith ef- fort to notify any individual who may have been denied eligibility for benefits or services under the program of the potential eligibility of the individual for such bene- fits or services. ‘‘(e) REPAYMENT OF ADDITIONAL RENT PAID UNDER HUD HOUSING PROGRAMS BECAUSE OF FAILURE TO DIS- REGARD REPARATION PAYMENTS.— ‘‘(1) AUTHORITY.—To the extent that amounts are provided in appropriation Acts for payments under this subsection, the Secretary of Housing and Urban Development shall make payments to qualified indi- viduals in the amount determined under paragraph (3). ‘‘(2) QUALIFIED INDIVIDUALS.—For purposes of this subsection, the term ‘qualified individual’ means an individual who— Page 4545 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437a ‘‘(A) has received any payment because of the in- dividual’s status as a victim of Nazi persecution; ‘‘(B) at any time during the period beginning on February 1, 1993 and ending on April 30, 1993, resided in a dwelling unit in housing assisted under any program for housing assistance of the Department of Housing and Urban Development under which rent payments for the unit were determined based on or taking into consideration the income of the occupant of the unit; ‘‘(C) paid rent for such dwelling unit for any por- tion of the period referred to in subparagraph (B) in an amount determined in a manner that did not disregard the payment referred to in subparagraph (A); and ‘‘(D) has submitted a claim for payment under this subsection as required under paragraph (4). The term does not include the successors, heirs, or es- tate of an individual meeting the requirements of the preceding sentence. ‘‘(3) AMOUNT OF PAYMENT.—The amount of a pay- ment under this subsection for a qualified individual shall be equal to the difference between— ‘‘(A) the sum of the amount of rent paid by the in- dividual for rental of the dwelling unit of the indi- vidual assisted under a program for housing assist- ance of the Department of Housing and Urban De- velopment, for the period referred to in paragraph (2)(B), and ‘‘(B) the sum of the amount of rent that would have been payable by the individual for rental of such dwelling unit for such period if the payments referred to in paragraph (2)(A) were disregarded in determining the amount of rent payable by the in- dividual for such period. ‘‘(4) SUBMISSION OF CLAIMS.—A payment under this subsection for an individual may be made only pursu- ant to a written claim for such payment by such indi- vidual submitted to the Secretary of Housing and Urban Development in the form and manner required by the Secretary before— ‘‘(A) in the case of any individual notified by the Department of Housing and Urban Development orally or in writing that such specific individual is eligible for a payment under this subsection, the expiration of the 6-month period beginning on the date of receipt of such notice; and ‘‘(B) in the case of any other individual, the expi- ration of the 12-month period beginning on the date of the enactment of this Act [Aug. 1, 1994].’’ INAPPLICABILITY OF CERTAIN 1992 AMENDMENTS TO INDIAN PUBLIC HOUSING Pub. L. 102–550, title VI, § 626, Oct. 28, 1992, 106 Stat. 3820, provided that: ‘‘The amendments made by this subtitle [subtitle B (§§ 621–626) of title VI of Pub. L. 102–550, amending this section and sections 1437c to 1437f, 1437l, 1437o, 1438, and 8013 of this title] shall not apply with respect to lower income housing developed or operated pursuant to a contract between the Sec- retary of Housing and Urban Development and an In- dian housing authority.’’ BUDGET COMPLIANCE Pub. L. 101–625, title V, § 573(e), Nov. 28, 1990, 104 Stat. 4237, provided that: ‘‘The amendments made by sub- sections (b) and (c) [amending this section] shall apply only to the extent approved in appropriations Acts.’’ MEDIAN AREA INCOME Pub. L. 100–242, title V, § 567, Feb. 5, 1988, 101 Stat. 1948, provided that: ‘‘For purposes of calculating the median income for any area that is not within a metro- politan statistical area (as established by the Office of Management and Budget) for programs under title I of the Housing and Community Development Act of 1974 [42 U.S.C. 5301 et seq.], the United States Housing Act of 1937 [42 U.S.C. 1437 et seq.], the National Housing Act [12 U.S.C. 1701 et seq.], or title V of the Housing Act of 1949 [42 U.S.C. 1471 et seq.], the Secretary of Housing and Urban Development or the Secretary of Agri- culture (as appropriate) shall use whichever of the fol- lowing is higher: ‘‘(1) the median income of the county in which the area is located; or ‘‘(2) the median income of the entire nonmetropoli- tan area of the State.’’ DETERMINATION OF RENT PAYABLE BY TENANTS OCCU- PYING ASSISTED HOUSING; DELAYED APPLICATION OR STAGED IMPLEMENTATION OF AMENDED PROVISIONS Pub. L. 98–181, title I [title II, § 206(d)], Nov. 30, 1983, 97 Stat. 1180, provided that: ‘‘(1) The following provisions of this paragraph apply to determinations of the rent to be paid by or the con- tribution required of a tenant occupying housing as- sisted under the authorities amended by this section [amending this section] or subsections (a) through (h) of section 322 of the Housing and Community Develop- ment Amendments of 1981 [amending sections 1437 to 1437d, 1437f, 1437g, 1437i, 1437j, and 1437l of this title and sections 1701s and 1715z–1 of Title 12, Banks and Bank- ing, and repealing provisions set out as notes under this section and section 1701s of Title 12] (hereinafter referred to as ‘assisted housing’) on or before the effec- tive date of regulations implementing this section: ‘‘(A) Notwithstanding any other provision of this section or subsections (a) through (h) of section 322 of the Housing and Community Development Amend- ments of 1981, the Secretary of Housing and Urban Development (hereinafter referred to as the ’Sec- retary’) may provide for delayed applicability, or for staged implementation, of the procedures for deter- mining rents or contributions, as appropriate, re- quired by such provisions if the Secretary determines that immediate application of such procedures would be impracticable, would violate the terms of existing leases, or would result in extraordinary hardship for any class of tenants. ‘‘(B) The Secretary shall provide that the rent or contribution, as appropriate, required to be paid by a tenant shall not increase as a result of the amend- ments made by this section and subsections (a) through (h) of section 322 of the Housing and Commu- nity Development Amendments of 1981, and as a re- sult of any other provision of Federal law or regula- tion, by more than 10 per centum during any twelve- month period, unless the increase above 10 per cen- tum is attributable to increases in income which are unrelated to such amendments, law, or regulation. ‘‘(2) Tenants of assisted housing other than those re- ferred to in paragraph (1) shall be subject to immediate rent payment or contribution determinations in ac- cordance with applicable law and without regard to the provisions of paragraph (1), but the Secretary shall pro- vide that the rent or contribution payable by any such tenant who is occupying assisted housing on the effec- tive date of any provision of Federal law or regulation shall not increase, as a result of any such provision of Federal law or regulation, by more than 10 per centum during any twelve-month period, unless the increase above 10 per centum is attributable to increases in in- come which are unrelated to such law or regulation. ‘‘(3) In the case of tenants receiving rental assistance under section 521(a)(1) of the Housing Act of 1949 [sec- tion 1490a(a)(1) of this title] on the effective date of this section [Nov. 30, 1983] whose assistance is converted to assistance under section 8 of the United States Housing Act of 1937 [section 1437f of this title] on or after such date, the Secretary shall provide that the rent or con- tribution payable by any such tenant shall not in- crease, as a result of such conversion, by more than 10 per centum during any twelve-month period, unless the increase above 10 per centum is attributable to in- creases in income which are unrelated to such conver- sion or to any provision of Federal law or regulation. ‘‘(4)(A) Notwithstanding any other provision of law, in the case of the conversion of any assistance under section 101 of the Housing and Urban Development Act Page 4546 TITLE 42—THE PUBLIC HEALTH AND WELFARE § 1437a–1 of 1965 [12 U.S.C. 1701s], section 236(f)(2) of the National Housing Act [12 U.S.C. 1715z–1(f)(2)], or section 23 of the United States Housing Act of 1937 [section 1421b of this title] (as in effect before the date of the enactment of the Housing and Community Development Act of 1974 [Aug. 22, 1974]) to assistance under section 8 of the United States Housing Act of 1937, any increase in rent payments or contributions resulting from such conver- sion, and from the amendments made by this section of any tenant benefiting from such assistance who is sixty-two years of age or older may not exceed 10 per centum per annum. ‘‘(B) In the case of any such conversion of assistance occurring on or after October 1, 1981, and before the date of the enactment of this section [Nov. 30, 1983], the rental payments due after such date of enactment by any tenant benefiting from such assistance who was sixty-two years of age or older on the date of such con- version shall be computed as if the tenant’s rental pay- ment or contribution had, on the date of conversion, been the lesser of the actual rental payment or con- tribution required, or 25 per centum of the tenant’s in- come. ‘‘(5) The limitations on increases in rent contained in paragraphs (1)(B), (2), (3), and (4) shall remain in effect and may not be changed or superseded except by an- other provision of law which amends this subsection. ‘‘(6) As used in this subsection, the term ‘contribu- tion’ means an amount representing 30 per centum of a tenant’s monthly adjusted income, 10 per centum of the tenant’s monthly income, or the designated amount of welfare assistance, whichever amount is used to deter- mine the monthly assistance payment for the tenant under section 3(a) of the United States Housing Act of 1937 [subsec. (a) of this section]. ‘‘(7) The provisions of subsections (a) through (h) of section 322 of the Housing and Community Develop- ment Amendments of 1981 shall be implemented and fully applicable to all affected tenants no later than five years following the date of enactment of such amendments [Aug. 13, 1981], except that the Secretary may extend the time for implementation if the Sec- retary determines that full implementation would re- sult in extraordinary hardship for any class of ten- ants.’’ Prior provisions for determining rent payable by ten- ants occupying assisted housing under and authorizing delayed application or staged implementation of provi- sions amended by section 322 of Pub. L. 97–35 were con- tained in Pub. L. 97–35, title III, § 322(i), Aug. 13, 1981, 95 Stat. 404, which was repealed by Pub. L. 98–181, title I [title II, § 206(e)], Nov. 30, 1983, 97 Stat. 1181. ESTABLISHMENT OF INCREASED MONTHLY RENTAL CHARGE FOR FAMILY OCCUPYING LOW-INCOME HOUS- ING UNIT; ADJUSTMENT FACTORS Pub. L. 93–383, title II, § 202, Aug. 22, 1974, 88 Stat. 667, provided that: ‘‘To the extent that section 3(1) of the United States Housing Act of 1937, as amended by sec- tion 201(a) of this Act [par. (1) of this section], would require the establishment of an increased monthly rental charge for any family which occupies a low-in- come housing unit as of the effective date of such sec- tion 3(1) (other than by reason of the provisions relat- ing to welfare assistance payments) [see Effective Date note set out above], the required adjustment shall be made, in accordance with regulations of the Secretary, as follows: (A) the first adjustment shall not exceed $5 and shall become effective as of the month following the month of the first review of the family’s income pursuant to section 6(c)(2) of such Act [section 1437d(c)(2) of this title] which occurs at least six months after the effective date of such section 3(1), and (B) subsequent adjustments, each of which shall not ex- ceed $5, shall be made at six-month intervals over whatever period is necessary to effect the full required increase in the family’s rental charge.’’ Executive Documents TERMINATION OF TRUST TERRITORY OF THE PACIFIC ISLANDS For termination of Trust Territory of the Pacific Is- lands, see note set out preceding section 1681 of Title 48, Territories and Insular Possessions. § 1437a–1. Repealed. Pub. L. 105–276, title V, § 582(a)(1), Oct. 21, 1998, 112 Stat. 2643 Section, Pub. L. 101–625, title V, § 519, Nov. 28, 1990, 104 Stat. 4202, authorized public housing rent waiver for po- lice officers. See section 1437a(a)(4) of this title. 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. § 1437b. Loans and commitments to make loans for low-income housing projects (a) Authority of Secretary; interest rates; repay- ment date; use as security for obligations of public housing agency The Secretary may make loans or commit- ments to make loans to public housing agencies to help finance or refinance the development, acquisition, or operation of low-income housing projects by such agencies. Any contract for such loans and any amendment to a contract for such loans shall provide that such loans shall bear in- terest at a rate specified by the Secretary which shall not be less than a rate determined by the Secretary of the Treasury taking into consider- ation the current average market yield on out- standing marketable obligations of the United States with remaining periods to maturity com- parable to the average maturities of such loans, plus one-eighth of 1 per centum. Such loans shall be secured in such manner and shall be re- paid within such period not exceeding forty years, or not exceeding forty years from the date of the bonds evidencing the loan, as the Secretary may determine. The Secretary may require loans or commitments to make loans under this section to be pledged as security for obligations issued by a public housing agency in connection with a low-income housing project. (b) Issuance of obligations by Secretary; limita- tion on amounts; forms and denominations; terms and conditions; purchase, establish- ment of maturities and rates of interest, and sale by Secretary of the Treasury The Secretary may issue and have outstanding at any one time notes and other obligations for purchase by the Secretary of the Treasury in an amount which will not, unless authorized by the President, exceed $1,500,000,000. For the purpose of determining obligations incurred to make loans pursuant to this chapter against any limi- tation otherwise applicable with respect to such loans, the Secretary shall estimate the max- imum amount to be loaned at any one time pur- suant to loan agreements then outstanding with public housing agencies. Such notes or other ob- ligations shall be in such forms and denomina-