US Code

Public Law 119-73 (01/23/2026)

42 U.S.C. § 1437g

Public housing Capital and Operating Funds

(a)

Merger into Capital Fund

lExcept as otherwise provided in the Quality Housing and Work Responsibility Act of 1998, any assistance made available for public housing under section 1437 of this title before , shall be merged into the Capital Fund established under subsection (d).

(b)

Merger into Operating Fund

Except as otherwise provided in the Quality Housing and Work Responsibility Act of 1998, any assistance made available for public housing under this section before , shall be merged into the Operating Fund established under subsection (e).

(c)

Allocation amount

(1)

In general

1
1 So in original. Probably should be “Fund”.
For fiscal year 2000 and each fiscal year thereafter, the Secretary shall allocate amounts in the Capital Fund and Operating Funds  for assistance for public housing agencies eligible for such assistance. The Secretary shall determine the amount of the allocation for each eligible agency, which shall be, for any fiscal year beginning after the effective date of the formulas described in subsections (d)(2) and (e)(2)—
(A)
for assistance from the Capital Fund, the amount determined for the agency under the formula under subsection (d)(2); and
(B)
for assistance from the Operating Fund, the amount determined for the agency under the formula under subsection (e)(2).
(2)

Funding

There are authorized to be appropriated for assistance for public housing agencies under this section the following amounts:
(A)

Capital Fund

For allocations of assistance from the Capital Fund, $3,000,000,000 for fiscal year 1999, and such sums as may be necessary for fiscal years 2000, 2001, 2002, and 2003.

(B)

Operating Fund

For allocations of assistance from the Operating Fund, $2,900,000,000 for fiscal year 1999, and such sums as may be necessary for each of fiscal years 2000, 2001, 2002, and 2003.

(d)

Capital Fund

(1)

In general

The Secretary shall establish a Capital Fund for the purpose of making assistance available to public housing agencies to carry out capital and management activities, including—
(A)
the development, financing, and modernization of public housing projects, including the redesign, reconstruction, and reconfiguration of public housing sites and buildings (including accessibility improvements) and the development of mixed-finance projects;
(B)
vacancy reduction;
(C)
addressing deferred maintenance needs and the replacement of obsolete utility systems and dwelling equipment;
(D)
planned code compliance;
(E)
management improvements, including the establishment and initial operation of computer centers in and around public housing through a Neighborhood Networks initiative, for the purpose of enhancing the self-sufficiency, employability, and economic self-reliance of public housing residents by providing them with onsite computer access and training resources;
(F)
demolition and replacement;
(G)
resident relocation;
(H)
capital expenditures to facilitate programs to improve the empowerment and economic self-sufficiency of public housing residents and to improve resident participation;
(I)
capital expenditures to improve the security and safety of residents;
(J)
section 1437z–4 of this title homeownership activities, including programs under ;
(K)
improvement of energy and water-use efficiency by installing fixtures and fittings that conform to the American Society of Mechanical Engineers/American National Standards Institute standards A112.19.2–1998 and A112.18.1–2000, or any revision thereto, applicable at the time of installation, and by increasing energy efficiency and water conservation by such other means as the Secretary determines are appropriate; and
(L)
integrated utility management and capital planning to maximize energy conservation and efficiency measures.
(2)

Formula

The Secretary shall develop a formula for determining the amount of assistance provided to public housing agencies from the Capital Fund for a fiscal year, which shall include a mechanism to reward performance. The formula may take into account such factors as—
(A)
the number of public housing dwelling units owned, assisted, or operated by the public housing agency, the characteristics and locations of the projects, and the characteristics of the families served and to be served (including the incomes of the families);
(B)
the need of the public housing agency to carry out rehabilitation and modernization activities, replacement housing, and reconstruction, construction, and demolition activities related to public housing dwelling units owned, assisted, or operated by the public housing agency, including backlog and projected future needs of the agency;
(C)
the cost of constructing and rehabilitating property in the area;
(D)
the need of the public housing agency to carry out activities that provide a safe and secure environment in public housing units owned, assisted, or operated by the public housing agency;
(E)
section 1437d(j) of this title any record by the public housing agency of exemplary performance in the operation of public housing, as indicated by the system of performance indicators established pursuant to ; and
(F)
any other factors that the Secretary determines to be appropriate.
(3)

Conditions on use for development and modernization

(A)

Development

lExcept as otherwise provided in this chapter, any public housing developed using amounts provided under this subsection, or under section 1437 of this title as in effect before the effective date under section 503(a) of the Quality Housing and Work Responsibility Act of 1998, shall be operated under the terms and conditions applicable to public housing during the 40-year period that begins on the date on which the project (or stage of the project) becomes available for occupancy.

(B)

Modernization

lExcept as otherwise provided in this chapter, any public housing or portion thereof that is modernized using amounts provided under this subsection or under section 1437 of this title (as in effect before the effective date under section 503(a) of the Quality Housing and Work Responsibility Act of 1998) shall be maintained and operated under the terms and conditions applicable to public housing during the 20-year period that begins on the latest date on which modernization is completed.

(C)

Applicability of latest expiration date

Public housing subject to this paragraph or to any other provision of law mandating the operation of the housing as public housing or under the terms and conditions applicable to public housing for a specified length of time, shall be maintained and operated as required until the latest such expiration date.

(e)

Operating Fund

(1)

In general

The Secretary shall establish an Operating Fund for the purpose of making assistance available to public housing agencies for the operation and management of public housing, including—
(A)
section 1437d(j)(6) of this title procedures and systems to maintain and ensure the efficient management and operation of public housing units (including amounts sufficient to pay for the reasonable costs of review by an independent auditor of the documentation or other information maintained pursuant to by a public housing agency or resident management corporation to substantiate the performance of that agency or corporation);
(B)
activities to ensure a program of routine preventative maintenance;
(C)
anticrime and antidrug activities, including the costs of providing adequate security for public housing residents, including above-baseline police service agreements;
(D)
activities related to the provision of services, including service coordinators for elderly persons or persons with disabilities;
(E)
activities to provide for management and participation in the management and policymaking of public housing by public housing residents;
(F)
the costs of insurance;
(G)
the energy costs associated with public housing units, with an emphasis on energy conservation;
(H)
section 1437j of this title the costs of administering a public housing work program under , including the costs of any related insurance needs;
(I)
the costs of repaying, together with rent contributions, debt incurred to finance the rehabilitation and development of public housing units, which shall be subject to such reasonable requirements as the Secretary may establish;
(J)
the costs associated with the operation and management of mixed finance projects, to the extent appropriate; and
(K)
the costs of operating computer centers in public housing through a Neighborhood Networks initiative described in subsection (d)(1)(E), and of activities related to that initiative.
(2)

Formula

(A)

In general

The Secretary shall establish a formula for determining the amount of assistance provided to public housing agencies from the Operating Fund for a fiscal year. The formula may take into account—
(i)
standards for the costs of operating and reasonable projections of income, taking into account the characteristics and locations of the public housing projects and characteristics of the families served and to be served (including the incomes of the families), or the costs of providing comparable services as determined in accordance with criteria or a formula representing the operations of a prototype well-managed public housing project;
(ii)
the number of public housing dwelling units owned, assisted, or operated by the public housing agency;
(iii)
the number of public housing dwelling units owned, assisted, or operated by the public housing agency that are chronically vacant and the amount of assistance appropriate for those units;
(iv)
to the extent quantifiable, the extent to which the public housing agency provides programs and activities designed to promote the economic self-sufficiency and management skills of public housing residents;
(v)
the need of the public housing agency to carry out anti-crime and anti-drug activities, including providing adequate security for public housing residents;
(vi)
2
2 See References in Text note below.
section 1437u of this title the amount of public housing rental income foregone by the public housing agency as a result of escrow savings accounts under section 1437u(d)(2)  of this title for families participating in a family self-sufficiency program of the agency under such ; and
(vii)
any other factors that the Secretary determines to be appropriate.
(B)

Incentive to increase certain rental income

The formula shall provide an incentive to encourage public housing agencies to facilitate increases in earned income by families in occupancy. Any such incentive shall provide that the agency shall benefit from increases in such rental income and that such amounts accruing to the agency pursuant to such benefit may be used only for low-income housing or to benefit the residents of the public housing agency.

(C)

Treatment of savings

(i)

In general

The treatment of utility and waste management costs under the formula shall provide that a public housing agency shall receive the full financial benefit from any reduction in the cost of utilities or waste management resulting from any contract with a third party to undertake energy conservation improvements in one or more of its public housing projects.

(ii)

Third party contracts

Contracts described in clause (i) may include contracts for equipment conversions to less costly utility sources, projects with resident-paid utilities, and adjustments to frozen base year consumption, including systems repaired to meet applicable building and safety codes and adjustments for occupancy rates increased by rehabilitation.

(iii)

Term of contract

The total term of a contract described in clause (i) shall not exceed 20 years to allow longer payback periods for retrofits, including windows, heating system replacements, wall insulation, site-based generation, advanced energy savings technologies, including renewable energy generation, and other such retrofits.

(iv)

Existing contracts

The term of a contract described in clause (i) that, as of , is in repayment and has a term of not more than 12 years, may be extended to a term of not more than 20 years to permit additional energy conservation improvements without requiring the reprocurement of energy performance contractors.

(D)

Freeze of consumption levels

(i)

In general

section 1437z–10(a) of this titleA small public housing agency, as defined in , may elect to be paid for its utility and waste management costs under the formula for a period, at the discretion of the small public housing agency, of not more than 20 years based on the small public housing agency’s average annual consumption during the 3-year period preceding the year in which the election is made (in this subparagraph referred to as the “consumption base level”).

(ii)

Initial adjustment in consumption base level

The Secretary shall make an initial one-time adjustment in the consumption base level to account for differences in the heating degree day average over the most recent 20-year period compared to the average in the consumption base level.

(iii)

Adjustments in consumption base level

The Secretary shall make adjustments in the consumption base level to account for an increase or reduction in units, a change in fuel source, a change in resident controlled electricity consumption, or for other reasons.

(iv)

Savings

All cost savings resulting from an election made by a small public housing agency under this subparagraph—
(I)
shall accrue to the small public housing agency; and
(II)
may be used for any public housing purpose at the discretion of the small public housing agency.
(v)

Third parties

A small public housing agency making an election under this subparagraph—
(I)
may use, but shall not be required to use, the services of a third party in its energy conservation program; and
(II)
shall have the sole discretion to determine the source, and terms and conditions, of any financing used for its energy conservation program.
(3)

Condition on use

No portion of any public housing project operated using amounts provided under this subsection, or under this section as in effect before the effective date under section 503(a) of the Quality Housing and Work Responsibility Act of 1998, may be disposed of before the expiration of the 10-year period beginning upon the conclusion of the fiscal year for which such amounts were provided, except as otherwise provided in this chapter.

(f)

Negotiated rulemaking procedure

The formulas under subsections (d)(2) and (e)(2) shall be developed according to procedures for issuance of regulations under the negotiated rulemaking procedure under subchapter III of chapter 5 of title 5.

(g)

Limitations on use of funds

(1)

Flexibility in use of funds

(A)

Flexibility for Capital Fund amounts

Of any amounts appropriated for fiscal year 2000 or any fiscal year thereafter that are allocated for fiscal year 2000 or any fiscal year thereafter from the Capital Fund for any public housing agency, the agency may use not more than 20 percent for activities that are eligible under subsection (e) for assistance with amounts from the Operating Fund, but only if the public housing agency plan for the agency provides for such use.

(B)

Flexibility for Operating Fund amounts

section 1437c–1 of this titleOf any amounts appropriated for fiscal year 2016 or any fiscal year thereafter that are allocated for fiscal year 2016 or any fiscal year thereafter from the Operating Fund for any public housing agency, the agency may use not more than 20 percent for activities that are eligible under subsection (d) for assistance with amounts from the Capital Fund, but only if the public housing plan under for the agency provides for such use.

(2)

Full flexibility for small PHAs

section 1437d(j)(2) of this titleOf any amounts allocated for any fiscal year for any public housing agency that owns or operates less than 250 public housing dwelling units, is not designated pursuant to as a troubled public housing agency, and (in the determination of the Secretary) is operating and maintaining its public housing in a safe, clean, and healthy condition, the agency may use any such amounts for any eligible activities under subsections (d)(1) and (e)(1), regardless of the fund from which the amounts were allocated and provided. This subsection shall take effect on .

(3)

Limitation on new construction

(A)

In general

Except as provided in subparagraphs (B) and (C), a public housing agency may not use any of the amounts allocated for the agency from the Capital Fund or Operating Fund for the purpose of constructing any public housing unit, if such construction would result in a net increase from the number of public housing units owned, assisted, or operated by the public housing agency on , including any public housing units demolished as part of any revitalization effort.

(B)

Exception regarding use of assistance

A public housing agency may use amounts allocated for the agency from the Capital Fund or Operating Fund for the construction and operation of housing units that are available and affordable to low-income families in excess of the limitations on new construction set forth in subparagraph (A), but the formulas established under subsections (d)(2) and (e)(2) shall not provide additional funding for the specific purpose of allowing construction and operation of housing in excess of those limitations (except to the extent provided in subparagraph (C)).

(C)

Exception regarding formulas

Subject to reasonable limitations set by the Secretary, the formulas established under subsections (d)(2) and (e)(2) may provide additional funding for the operation and modernization costs (but not the initial development costs) of housing in excess of amounts otherwise permitted under this paragraph, and such amounts may be so used, if—
(i)
such units are part of a mixed-finance project or otherwise leverage significant additional private or public investment; and
(ii)
o the estimated cost of the useful life of the project is less than the estimated cost of providing tenant-based assistance under section 1437f() of this title for the same period of time.
(h)

Technical assistance

To the extent amounts are provided in advance in appropriations Acts, the Secretary may make grants or enter into contracts or cooperative agreements in accordance with this subsection for purposes of providing, either directly or indirectly—
(1)
technical assistance to public housing agencies, resident councils, resident organizations, and resident management corporations, including assistance relating to monitoring and inspections;
(2)
training for public housing agency employees and residents;
(3)
data collection and analysis;
(4)
training, technical assistance, and education to public housing agencies that are—
(A)
section 1437d(j) of this title at risk of being designated as troubled under , to assist such agencies from being so designated; and
(B)
section 1437d(j) of this title designated as troubled under , to assist such agencies in achieving the removal of that designation;
(5)
contract expertise;
(6)
training and technical assistance to assist in the oversight and management of public housing or tenant-based assistance;
(7)
clearinghouse services in furtherance of the goals and activities of this subsection; and
(8)
assistance in connection with the establishment and operation of computer centers in public housing through a Neighborhood Networks initiative described in subsection (d)(1)(E).
As used in this subsection, the terms “training” and “technical assistance” shall include training or technical assistance and the cost of necessary travel for participants in such training or technical assistance, by or to officials and employees of the Department and of public housing agencies, and to residents and to other eligible grantees.
(i)

Eligibility of units acquired from proceeds of sales under demolition or disposition plan

section 1437z–4 of this titleIf a public housing agency uses proceeds from the sale of units under a homeownership program in accordance with to acquire additional units to be sold to low-income families, the additional units shall be counted as public housing for purposes of determining the amount of the allocation to the agency under this section until sale by the agency, but in no case longer than 5 years.

(j)

Penalty for slow expenditure of capital funds

(1)

Obligation of amounts

Except as provided in paragraph (4) and subject to paragraph (2), a public housing agency shall obligate any assistance received under this section not later than 24 months after, as applicable—
(A)
the date on which the funds become available to the agency for obligation in the case of modernization; or
(B)
the date on which the agency accumulates adequate funds to undertake modernization, substantial rehabilitation, or new construction of units.
(2)

Extension of time period for obligation

The Secretary—
(A)
may, extend the time period under paragraph (1) for a public housing agency, for such period as the Secretary determines to be necessary, if the Secretary determines that the failure of the agency to obligate assistance in a timely manner is attributable to—
(i)
litigation;
(ii)
obtaining approvals of the Federal Government or a State or local government;
(iii)
complying with environmental assessment and abatement requirements;
(iv)
relocating residents;
(v)
an event beyond the control of the public housing agency; or
(vi)
any other reason established by the Secretary by notice published in the Federal Register;
(B)
shall disregard the requirements of paragraph (1) with respect to any unobligated amounts made available to a public housing agency, to the extent that the total of such amounts does not exceed 10 percent of the original amount made available to the public housing agency; and
(C)
may, with the prior approval of the Secretary, extend the time period under paragraph (1), for an additional period not to exceed 12 months, based on—
(i)
the size of the public housing agency;
(ii)
the complexity of capital program of the public housing agency;
(iii)
any limitation on the ability of the public housing agency to obligate the amounts allocated for the agency from the Capital Fund in a timely manner as a result of State or local law; or
(iv)
such other factors as the Secretary determines to be relevant.
(3)

Effect of failure to comply

(A)

Prohibition of new assistance

A public housing agency shall not be awarded assistance under this section for any month during any fiscal year in which the public housing agency has funds unobligated in violation of paragraph (1) or (2).

(B)

Withholding of assistance

During any fiscal year described in subparagraph (A), the Secretary shall withhold all assistance that would otherwise be provided to the public housing agency. If the public housing agency cures its failure to comply during the year, it shall be provided with the share attributable to the months remaining in the year.

(C)

Redistribution

section 1437d(j) of this titleThe total amount of any funds not provided public housing agencies by operation of this paragraph shall be allocated for agencies determined under to be high-performing.

(4)

Exception to obligation requirements

(A)

In general

Subject to subparagraph (B), if the Secretary has consented, before the effective date under section 503(a) of the Quality Housing and Work Responsibility Act of 1998, to an obligation period for any agency longer than provided under paragraph (1), a public housing agency that obligates its funds before the expiration of that period shall not be considered to be in violation of paragraph (1).

(B)

Prior fiscal years

Notwithstanding subparagraph (A), any funds appropriated to a public housing agency for fiscal year 1997 or prior fiscal years shall be fully obligated by the public housing agency not later than .

(5)

Expenditure of amounts

(A)

In general

A public housing agency shall spend any assistance received under this section not later than 4 years (plus the period of any extension approved by the Secretary under paragraph (2)) after the date on which funds become available to the agency for obligation.

(B)

Enforcement

The Secretary shall enforce the requirement of subparagraph (A) through default remedies up to and including withdrawal of the funding.

(6)

Right of recapture

Any obligation entered into by a public housing agency shall be subject to the right of the Secretary to recapture the obligated amounts for violation by the public housing agency of the requirements of this subsection.

(7)

Treatment of replacement reserve

The requirements of this subsection shall not apply to funds held in replacement reserves established pursuant to subsection (n).

(k)

Treatment of nonrental income

A public housing agency that receives income from nonrental sources (as determined by the Secretary) may retain and use such amounts without any decrease in the amounts received under this section from the Capital or Operating Fund. Any such nonrental amounts retained shall be used only for low-income housing or to benefit the residents assisted by the public housing agency.

(l)

Provision of only capital or operating assistance

(1)

Authority

In appropriate circumstances, as determined by the Secretary, a public housing agency may commit capital assistance only, or operating assistance only, for public housing units, which assistance shall be subject to all of the requirements applicable to public housing except as otherwise provided in this subsection.

(2)

Exemptions

42 U.S.C. 1437fIn the case of any public housing unit assisted pursuant to the authority under paragraph (1), the Secretary may, by regulation, reduce the period under subsection (d)(3) or (e)(3), as applicable, during which such units must be operated under requirements applicable to public housing. In cases in which there is commitment of operating assistance but no commitment of capital assistance, the Secretary may make section 8 [] requirements applicable, as appropriate, by regulation.

(m)

Treatment of public housing

(1)

Pub. L. 108–7, div. K, title II, § 212(a)117 Stat. 503 Repealed. , ,

(2)

Reduction of asthma incidence

3

3 So in original.
Notwithstanding any other provision of this section, the New York City Housing Authority may, in its sole discretion, from amounts provided from the Operating and Capital Funds, or from amounts provided for public housing before amounts are made available from such Funds, use not more than exceeding  $500,000 per year for the purpose of initiating, expanding or continuing a program for the reduction of the incidence of asthma among residents. The Secretary shall consult with the Administrator of the Environmental Protection Agency and the Secretary of Health and Human Services to identify and consider sources of funding for the reduction of the incidence of asthma among recipients of assistance under this subchapter.

(3)

Services for elderly residents

Notwithstanding any other provision of this section, the New York City Housing Authority may, in its sole discretion, from amounts provided from the Operating and Capital Funds, or from amounts provided for public housing before the amounts are made available from such Funds, use not more than $600,000 per year for the purpose of developing a comprehensive plan to address the need for services for elderly residents. Such plan may be developed by a partnership created by such Housing Authority and may include the creation of a model project for assisted living at one or more developments. The model project may provide for contracting with private parties for the delivery of services.

(4)

Effective date

This subsection shall apply to fiscal year 1999 and each fiscal year thereafter.

(n)

Establishment of replacement reserves

(1)

In general

Public housing agencies shall be permitted to establish a replacement reserve to fund any of the capital activities listed in subsection (d)(1).

(2)

Source and amount of funds for replacement reserve

At any time, a public housing agency may deposit funds from such agency’s Capital Fund into a replacement reserve, subject to the following:
(A)
At the discretion of the Secretary, public housing agencies may transfer and hold in a replacement reserve funds originating from additional sources.
(B)
No minimum transfer of funds to a replacement reserve shall be required.
(C)
At any time, a public housing agency may not hold in a replacement reserve more than the amount the public housing authority has determined necessary to satisfy the anticipated capital needs of properties in its portfolio assisted under this section, as outlined in its Capital Fund 5-Year Action Plan, or a comparable plan, as determined by the Secretary.
(D)
The Secretary may establish, by regulation, a maximum replacement reserve level or levels that are below amounts determined under subparagraph (C), which may be based upon the size of the portfolio assisted under this section or other factors.
(3)

Transfer of operating funds

In first establishing a replacement reserve, the Secretary may allow public housing agencies to transfer more than 20 percent of its operating funds into its replacement reserve.

(4)

Expenditure

Funds in a replacement reserve may be used for purposes authorized by subsection (d)(1) and contained in its Capital Fund 5-Year Action Plan.

(5)

Management and report

The Secretary shall establish appropriate accounting and reporting requirements to ensure that public housing agencies are spending funds on eligible projects and that funds in the replacement reserve are connected to capital needs.

(o)

Public housing heating guidelines

The Secretary shall publish model guidelines for minimum heating requirements for public housing dwelling units operated by public housing agencies receiving assistance under this section.

Sept. 1, 1937, ch. 896Pub. L. 93–383, title II, § 201(a)88 Stat. 666Pub. L. 94–375, § 2(c)90 Stat. 1068Pub. L. 95–24, title I, § 101(b)91 Stat. 55Pub. L. 95–128, title II, § 201(f)91 Stat. 1129Pub. L. 95–557, title II, § 206(g)92 Stat. 2093Pub. L. 96–153, title II93 Stat. 1106Pub. L. 96–399, title II, § 201(b)94 Stat. 1625Pub. L. 97–35, title III95 Stat. 399Pub. L. 98–181, title I97 Stat. 1184Pub. L. 99–272, title III, § 3003100 Stat. 102Pub. L. 100–242, title I101 Stat. 1824Pub. L. 100–358, § 5102 Stat. 681Pub. L. 101–625, title V104 Stat. 4186Pub. L. 102–550, title I, § 114106 Stat. 3691Pub. L. 103–233, title III, § 304108 Stat. 370Pub. L. 104–134, title I, § 101(e) [title II, § 218]110 Stat. 1321–257Pub. L. 104–140, § 1(a)110 Stat. 1327Pub. L. 104–330, title V, § 501(b)(5)110 Stat. 4042Pub. L. 105–276, title II, § 210112 Stat. 2485Pub. L. 106–377, § 1(a)(1) [title II, § 214(a)]114 Stat. 1441Pub. L. 108–7, div. K, title II, § 212(a)117 Stat. 503Pub. L. 109–58, title I, § 151119 Stat. 648Pub. L. 110–161, div. K, title II, § 229121 Stat. 2438Pub. L. 110–289, div. B, title VIII, § 2804122 Stat. 2866Pub. L. 114–201, title I130 Stat. 801Pub. L. 115–174, title II, § 209(b)132 Stat. 1315(, title I, § 9, as added , , ; amended , , ; , , ; , , ; , , ; , §§ 201(c), 207, 211(a), , , 1109, 1110; , (d), , ; , §§ 321(d), 322(c), , , 402; [title II, § 212], , ; , , ; , §§ 112(b)(4), 118, , , 1828; renumbered title I, , , ; , §§ 507, 572(2), title VIII, § 802(p), , , 4236, 4317; , title VI, § 673, , , 3827; , , ; , , , 1321–290; renumbered title I, , , ; , , ; , title V, § 519(a), , , 2551; , , , 1441A–27; , , ; , , ; , , ; , , ; , §§ 109, 111, , , 803; , , .)

Editorial Notes

References in Text

Pub. L. 105–276112 Stat. 2518section 1437 of this titlesection 1437 of this titleThe Quality Housing and Work Responsibility Act of 1998, referred to in subsecs. (a) and (b), is title V of , , . Section 503(a) of the Act is set out as an Effective Date of 1998 Amendment note under . Section 519(e) of the Act is set out as a note below. For complete classification of this Act to the Code, see Short Title of 1998 Amendment note set out under and Tables.

lPub. L. 105–276, title V, § 522(a)112 Stat. 2564Section 1437 of this title, referred to in subsecs. (a) and (d)(3)(A), (B), was repealed by , , .

Section 1437u(d)(2) of this titlesection 1437u(e)(2) of this titlePub. L. 115–174, title III, § 306(a)(4)132 Stat. 1340, referred to in subsec. (e)(2)(A)(vi), was redesignated and substantially rewritten by , (7)(B), , , 1341.

Prior Provisions

act Sept. 1, 1937, ch. 89650 Stat. 891section 1409 of this titlePub. L. 93–383section 1437b of this titleA prior section 9 of , , as amended, authorized loans for low-rent housing and slum clearance projects and was classified to , prior to the general revision of this chapter by . Similar provisions are contained in .

Amendments

Pub. L. 115–1742018—Subsec. (e)(2)(D). added subpar. (D).

Pub. L. 114–201, § 109(b)2016—Subsec. (g)(1). , substituted “Flexibility in use of funds” for “Flexibility for Capital Fund amounts” in heading, designated existing provisions as subpar. (A), inserted subpar. heading, and added subpar. (B).

Pub. L. 114–201, § 109(a)(1)Subsec. (j)(7). , added par. (7).

Pub. L. 114–201, § 109(a)(2)Subsec. (n). , added subsec. (n).

oPub. L. 114–201, § 111oSubsec. (). , added subsec. ().

Pub. L. 110–289l2008—Subsecs. (k) to (n). redesignated subsecs. () to (n) as (k) to (m), respectively, and struck out former subsec. (k), which related to emergency reserve and use of amounts.

Pub. L. 110–1612007—Subsec. (e)(2)(C)(iv). added cl. (iv).

Pub. L. 109–58, § 151(1)2005—Subsec. (d)(1)(K), (L). , added subpars. (K) and (L).

Pub. L. 109–58, § 151(2)Subsec. (e)(2)(C). , designated existing provisions as cl. (i), inserted heading, and added cls. (ii) and (iii).

Pub. L. 108–72003—Subsec. (n)(1). struck out par. (1) which related to treatment of certain covered locally developed public housing units as eligible public housing units.

Pub. L. 106–377, § 1(a)(1) [title II, § 214(a)(1)]2000—Subsec. (d)(1)(E). , inserted before semicolon “, including the establishment and initial operation of computer centers in and around public housing through a Neighborhood Networks initiative, for the purpose of enhancing the self-sufficiency, employability, and economic self-reliance of public housing residents by providing them with onsite computer access and training resources”.

Pub. L. 106–377, § 1(a)(1) [title II, § 214(a)(2)]Subsec. (e)(1)(K). , added subpar. (K).

Pub. L. 106–377, § 1(a)(1) [title II, § 214(a)(3)]Subsec. (h)(8). , added par. (8).

Pub. L. 105–276, § 519(a)1998—, amended section generally, substituting present provisions for provisions which had: in subsec. (a), authorized annual contributions for operation of low-income housing, and provided for determination of the amounts and use of those contributions, contract authorization, standards for payments, necessity of contribution contracts, performance funding system, and audits; in subsec. (b), set forth limitation on amount of aggregate rentals paid by families residing in dwelling units receiving annual contributions; in subsec. (c), authorized appropriations for fiscal years 1993 and 1994; in subsec. (d), required distribution of remaining appropriated funds to projects incurring excessive costs; and in subsec. (e), set forth time of payment of assistance to public housing agency.

Pub. L. 105–276, § 210Subsec. (a)(3)(A). , inserted after third sentence “Notwithstanding the preceding sentences, the Secretary may revise the performance funding system in a manner that takes into account equity among public housing agencies and that includes appropriate incentives for sound management.” and, in last sentence, inserted “, or any substantial change under the preceding sentence,” after “vacant public housing units”.

Pub. L. 104–330section 1437c of this title1996—Subsec. (a)(1)(A). , in second sentence, inserted “and” after comma at end of cl. (i), struck out “, and” after “reserve funds” in cl. (ii), and struck out cl. (iii) which read as follows: “with respect to housing projects developed under the Indian and Alaskan Native housing program assisted under this chapter, to provide funds (in addition to any other operating costs contributions approved by the Secretary under this section) as determined by the Secretary to be required to cover the administrative costs to an Indian housing authority during the development period of a project approved pursuant to and until such time as the project is occupied”.

Pub. L. 104–134Subsec. (a)(3)(B)(i). struck out “for a period not to exceed 6 years” after “with the public housing agency”.

Pub. L. 103–2331994—Subsec. (a)(4). added par. (4).

Pub. L. 102–550, § 673section 8011 of this titlesection 8013 of this title1992—Subsec. (a)(1)(B). , designated existing provisions as cl. (i), redesignated former cls. (i) and (ii) as subcls. (I) and (II), respectively, substituted “this clause” for “this subparagraph”, inserted reference to and a period after “”, and added cl. (ii).

Pub. L. 102–550, § 114(b)Subsec. (a)(3)(A). , inserted at end “Notwithstanding sections 583(a) and 585(a) of title 5 (as added by section 3(a) of the Negotiated Rulemaking Act of 1990), any proposed regulation providing for amendment, alteration, adjustment, or other change to the performance funding system relating to vacant public housing units shall be issued pursuant to a negotiated rulemaking procedure under subchapter IV of chapter 5 of such title (as added by section 3(a) of the Negotiated Rulemaking Act of 1990), and the Secretary shall establish a negotiated rulemaking committee for development of any such proposed regulations.”

Pub. L. 102–550, § 114(c)Subsec. (a)(3)(B)(i). , inserted before semicolon at end “, and in subsequent years, if the energy savings are cost-effective, the Secretary may continue the sharing arrangement with the public housing agency for a period not to exceed 6 years”.

Pub. L. 102–550, § 114(a)Subsec. (c). , amended subsec. (c) generally. Prior to amendment, subsec. (c) read as follows: “There are authorized to be appropriated for purposes of providing annual contributions under this section $2,000,000,000 for fiscal year 1991 and $2,086,000,000 in fiscal year 1992.”

Pub. L. 101–625, § 572(2)1990—Subsec. (a)(1). , substituted “low-income housing” for “lower income housing” wherever appearing.

Pub. L. 101–625, § 507(b)(1), designated existing provisions as subpar. (A), redesignated former cls. (A) to (C) as cls. (i) to (iii), respectively, and added subpar. (B).

Pub. L. 101–625, § 572(2)Subsec. (a)(2). , substituted “low-income housing” for “lower income housing” wherever appearing.

Pub. L. 101–625, § 507(b)(2)Subsec. (a)(3)(A). , inserted after first comma “(except for payments under paragraph (1)(B))”.

Pub. L. 101–625, § 802(p)Subsec. (a)(3)(B)(v). , added cl. (v).

Pub. L. 101–625, § 507(a)Subsec. (c). , amended subsec. (c) generally. Prior to amendment, subsec. (c) read as follows: “There are authorized to be appropriated for purposes of providing annual contributions under this section $1,500,000,000 for fiscal year 1988 and $1,530,000,000 for fiscal year 1989.”

Pub. L. 101–625, § 572(2)Subsec. (d). , substituted “low-income housing” for “lower income housing”.

Pub. L. 100–242, § 118(a)(1)1988—Subsec. (a)(1). , struck out last sentence directing Secretary to establish standards for costs of operation and reasonable projections of income, for purposes of making payments under this section.

Pub. L. 100–242, § 118(d), inserted at end “If the Secretary determines that a public housing agency has failed to take the actions required to submit an acceptable audit on a timely basis in accordance with chapter 75 of title 31, the Secretary may arrange for, and pay the costs of, the audit. In such circumstances, the Secretary may withhold, from assistance otherwise payable to the agency under this section, amounts sufficient to pay for the reasonable costs of conducting an acceptable audit, including, when appropriate, the reasonable costs of accounting services necessary to place the agency’s books and records in auditable condition.”

Pub. L. 100–242, § 112(b)(4)Subsec. (a)(2). , substituted “one developed pursuant to a contributions contract authorized by section 1437c” for “being assisted by an annual contributions contract authorized by section 1437c(c)” and “any such” for “any such annual”.

Pub. L. 100–242, § 118(a)(2)Subsec. (a)(3). , added par. (3).

Pub. L. 100–242, § 118(b)Subsec. (c). , amended subsec. (c) generally, substituting provisions authorizing appropriations under this section for fiscal years 1988 and 1989 for provisions authorizing appropriations for the period beginning on or after , through the period beginning on or after .

Pub. L. 100–242, § 118(c)Subsec. (e). , added subsec. (e).

Pub. L. 99–2721986—Subsec. (c). struck out “and by” after “1983,” and inserted “, and not to exceed $1,279,000,000 on or after ” after “1984”.

Pub. L. 98–1811983—Subsec. (c). substituted “, and” for “,” and authorized appropriations of not to exceed $1,500,000,000 on or after , and of such sums as may be necessary on or after .

Pub. L. 97–35, § 322(c)1981—Subsec. (a). , substituted reference to lower income for reference to low-income wherever appearing.

Pub. L. 97–35, § 321(d)Subsec. (c). , inserted provisions respecting authorization on or after .

Pub. L. 97–35, § 322(c)Subsec. (d). , substituted reference to lower income for reference to low-income.

Pub. L. 96–399, § 201(d)1980—Subsec. (a)(1)(C). , added cl. (C).

Pub. L. 96–399, § 201(b)Subsec. (c). , authorized appropriation of not to exceed $826,000,000 on or after .

Pub. L. 96–153, § 211(a)1979—Subsec. (a). , designated existing provisions as par. (1) and cls. (1) and (2) thereof as (A) and (B), inserted provisions that such contract shall provide that no disposition of low-income housing project, with respect to which the contract is entered into, shall occur during and for ten years after the period when contributions were made pursuant to such contract unless approved by the Secretary, and added par. (2).

Pub. L. 96–153, § 201(c)Subsec. (c). , authorized appropriation for annual contributions of $741,500,000 on or after .

Pub. L. 96–153, § 207Subsec. (d). , added subsec. (d).

Pub. L. 95–5571978—Subsec. (c). inserted “and not to exceed $729,000,000 on or after ”.

Pub. L. 95–1281977—Subsec. (c). authorized appropriation for annual contributions of $685,000,000 on or after .

Pub. L. 95–24 substituted “and not to exceed $595,600,000 on or after ” for “and not to exceed $576,000,000 on or after ”.

Pub. L. 94–3751976—Subsec. (c). substituted provision authorizing appropriations for annual contributions not to exceed $535,000,000 on or after , not to exceed $80,000,000 on or after , and not to exceed $576,000,000 on or after for provision which authorized annual contributions for contracts entered into on or after of not more than $500,000,000 per annum, which amount was to be increased by $60,000,000 on .

Statutory Notes and Related Subsidiaries

Effective Date of 2018 Amendment

Pub. L. 115–174, title II, § 209(d)132 Stat. 1316

section 1437z–10 of this title“The amendments made by subsections (a) and (b) [enacting and amending this section] shall take effect on the date that is 60 days after the date of enactment of this Act [].”
, , , provided that:

Effective Date of 2003 Amendment

Pub. L. 108–7, div. K, title II, § 212(c)117 Stat. 504

“The amendment made by subsection (a) [amending this section] shall be deemed to have taken effect on .”
, , , provided that:

Effective Date of 1998 Amendment

Pub. L. 105–276section 503 of Pub. L. 105–276section 1437 of this titleAmendment by title V of effective and applicable beginning upon , except as otherwise provided, with provision that Secretary may implement amendment before such date, except to extent that such amendment provides otherwise, and with savings provision, see , set out as a note under .

Pub. L. 105–276, title V, § 519(e)112 Stat. 2561

“(e)

Transitional Provision of Assistance.—

“(1)

In general .—

42 U.S.C. 1437g(d)(2)42 U.S.C. 1437glSubject to paragraph (2), before the implementation of formulas pursuant to sections 9(d)(2) and 9(e)(2) of the United States Housing Act of 1937 [, (e)(2)] (as amended by subsection (a) of this section), the Secretary shall provide that each public housing agency shall receive funding under sections 9 and 14 of the United States Housing Act of 1937 [, 1437], as those sections existed immediately before the enactment of this Act [] (except that such sections shall be subject to any amendments to such sections that may be contained in title II of this Act [see Tables for classification]).
“(2)

Qualifications .—

42 U.S.C. 1437g(d)(2)Before the implementation of formulas pursuant to sections 9(d)(2) and 9(e)(2) of the United States Housing Act of 1937 [, (e)(2)] (as amended by subsection (a) of this section)—
“(A)
42 U.S.C. 1437a42 U.S.C. 1437g if a public housing agency establishes a rental amount that is based on a ceiling rent established pursuant to subsection (d)(1) of this section [ note], the Secretary shall take into account any reduction of the per unit dwelling rental income of the public housing agency resulting from the use of that rental amount in calculating the contributions for the public housing agency for the operation of the public housing under section 9 of the United States Housing Act of 1937 [];
“(B)
42 U.S.C. 1437a(b)(5)(G)42 U.S.C. 1437g if a public housing agency establishes a rental amount that is based on an adjustment to income under section 3(b)(5)(G) of the United States Housing Act of 1937 [] (as in effect immediately before the enactment of this Act []), the Secretary shall not take into account any reduction of or any increase in the per unit dwelling rental income of the public housing agency resulting from the use of that rental amount in calculating the contributions for the public housing agency for the operation of the public housing under section 9 of the United States Housing Act of 1937 []; and
“(C)
42 U.S.C. 1437a(a)(1)(A)42 U.S.C. 1437g if a public housing agency establishes a rental amount other than as provided under subparagraph (A) or (B) that is less than the greatest of the amounts determined under subparagraphs (A), (B), and (C) of section 3(a)(1) of the United States Housing Act of 1937 [, (B), (C)], the Secretary shall not take into account any reduction of the per unit dwelling rental income of the public housing agency resulting from the use of that rental amount in calculating the contributions for the public housing agency for the operation of the public housing under section 9 of the United States Housing Act of 1937 [].
“(f)

Effective Date of Operating Formula .—

42 U.S.C. 143742 U.S.C. 1437g(e)(2)Notwithstanding the effective date under section 503(a) [ note], the Secretary may extend the effective date of the formula under section 9(e)(2) of the United States Housing Act of 1937 [] (as amended by subsection (a) of this section) for up to 6 months if such additional time is necessary to implement such formula.
“(g)

Effective Date .—

42 U.S.C. 1437aSubsections (d) [ note], (e), and (f) shall take effect upon the date of the enactment of this Act [].”
–(g), , , 2562, provided that:

Effective Date of 1996 Amendment

Pub. L. 104–330section 107 of Pub. L. 104–330section 4101 of Title 25Amendment by effective , except as otherwise expressly provided, see , set out as an Effective Date note under , Indians.

Effective Date of 1992 Amendment

Pub. L. 102–550section 13642 of this titleAmendment by subtitles B through F of title VI [§§ 621–685] of applicable upon expiration of 6-month period beginning , except as otherwise provided, see .

Effective Date of 1990 Amendment

section 802(p) of Pub. L. 101–625Pub. L. 101–507section 1701q of Title 12Amendment by deemed enacted , see title II of , set out as a note under , Banks and Banking.

Effective Date of 1981 Amendment

Pub. L. 97–35section 371 of Pub. L. 97–35section 3701 of Title 12Amendment by effective , see , set out as an Effective Date note under , Banks and Banking.

Effective Date of 1978 Amendment

Pub. L. 95–557section 206(h) of Pub. L. 95–557section 1437c of this titleAmendment by effective , see , set out as a note under .

Effective Date

section 201(b) of Pub. L. 93–383section 1437 of this titleSection effective on such date or dates as the Secretary of Housing and Urban Development shall prescribe, but not later than eighteen months after , except that all of the provisions of subsec. (c) shall become effective on the same date, see , set out as a note under .

Regulations

Pub. L. 108–199, div. G, title II, § 222118 Stat. 398

“The Secretary of Housing and Urban Development shall conduct negotiated rulemaking with representatives from interested parties for purposes of any changes to the formula governing the Public Housing Operating Fund. A final rule shall be issued no later than .”
, , , provided that:

Pub. L. 108–7, div. K, title II117 Stat. 487

42 U.S.C. 1437g(j)“That the Secretary shall issue final regulations to carry out section 9(j) of the United States Housing Act of 1937 (), not later than ”.
, , , provided in part:

Capital Funds for Central Office Costs

Pub. L. 118–42, div. F, title II, § 214138 Stat. 377

Pub. L. 118–42138 Stat. 34442 U.S.C. 1437g(d)42 U.S.C. 1437g(g)(1)Provided“With respect to the use of amounts provided in this Act [meaning title II of div. F of , , see Tables for classification] and in future Acts for the operation, capital improvement, and management of public housing as authorized by sections 9(d) and 9(e) of the United States Housing Act of 1937 (, (e)), the Secretary [of Housing and Urban Development] shall not impose any requirement or guideline relating to asset management that restricts or limits in any way the use of capital funds for central office costs pursuant to paragraph (1) or (2) of section 9(g) of the United States Housing Act of 1937 (, (2)): , That a public housing agency may not use capital funds authorized under section 9(d) for activities that are eligible under section 9(e) for assistance with amounts from the operating fund in excess of the amounts permitted under paragraph (1) or (2) of section 9(g).”
, , , provided that:

Similar provisions were contained in the following appropriation acts:

Pub. L. 117–328, div. L, title II, § 214136 Stat. 5174, , .

Pub. L. 117–103, div. L, title II, § 214136 Stat. 758, , .

Pub. L. 116–260, div. L, title II, § 214134 Stat. 1896, , .

Pub. L. 116–94, div. H, title II, § 214133 Stat. 3004, , .

Pub. L. 116–6, div. G, title II, § 216133 Stat. 460, , .

Pub. L. 115–141, div. L, title II, § 217132 Stat. 1033, , .

Pub. L. 115–31, div. K, title II, § 218131 Stat. 784, , .

Pub. L. 114–113, div. L, title II, § 219129 Stat. 2893, , .

Pub. L. 113–235, div. K, title II, § 219128 Stat. 2753, , .

Pub. L. 113–76, div. L, title II, § 223128 Stat. 631, , .

Pub. L. 112–55, div. C, title II, § 224125 Stat. 700, , .

Pub. L. 111–117, div. A, title II, § 224123 Stat. 3102, , .

Pub. L. 111–8, div. I, title II, § 226123 Stat. 977, , .

Pub. L. 110–161, div. K, title II, § 226121 Stat. 2437, , .

Payments for Costs of Operation and Management of Public Housing Prohibited

Pub. L. 108–447, div. I, title II118 Stat. 3298

Public Housing Operating FundProvided further“That for fiscal year 2006 and all fiscal years thereafter, the Secretary shall provide assistance under this heading [] to public housing agencies on a calendar year basis: , That, in fiscal year 2005 and all fiscal years hereafter, no amounts under this heading in any appropriations Act may be used for payments to public housing agencies for the costs of operation and management of public housing for any year prior to the current year of such Act”.
, , , provided in part:

Similar provisions were contained in the following appropriation acts:

Pub. L. 111–117, div. A, title II123 Stat. 3080, , .

Pub. L. 111–8, div. I, title II123 Stat. 956, , .

Pub. L. 110–161, div. K, title II121 Stat. 2417, , .

Pub. L. 109–115, div. A, title III119 Stat. 2444, , .

Pub. L. 108–199, div. G, title II118 Stat. 375, , .

Pub. L. 108–7, div. K, title II117 Stat. 488, , .

Funding of Covered Locally Developed Public Housing Units Prohibited

Pub. L. 108–7, div. K, title II, § 207117 Stat. 502

42 U.S.C. 1437g(m)Provided42 U.S.C. 5306“Notwithstanding any other provision of law, no funds in this Act or in any other Act in any fiscal year, including all future and prior fiscal years, may be used hereafter by the Secretary of Housing and Urban Development to provide any assistance or other funds for housing units defined in section 9(n) [now 9(m)] of the United States Housing Act of 1937 [] (as in effect immediately before the enactment of this Act []) as ‘covered locally developed public housing units’. The States of New York and Massachusetts shall reimburse any funds already made available under any appropriations Act for these units to the Secretary of Housing and Urban Development for reallocation to public housing agencies: , That, if either State fails to make such reimbursement within 12 months, the Secretary shall recapture such funds through reductions from the amounts allocated to each State under section 106 of the Housing and Community Development Act of 1974 [].”
, , , provided that:

Applicability of Penalties for Slow Expenditure of Capital Funds

Pub. L. 107–73, title II115 Stat. 660

42 U.S.C. 1437g(j)public housing capital fund (including transfer of funds)“That, hereafter, notwithstanding any other provision of law or any failure of the Secretary of Housing and Urban Development to issue regulations to carry out section 9(j) of the United States Housing Act of 1937 (), such section is deemed to have taken effect on , and, except as otherwise provided in this heading [“”], shall apply to all assistance made available under this same heading on or after such date”.
, , , provided in part:

Cooling Degree Day Adjustment Under Performance Funding System

Pub. L. 101–625, title V, § 508104 Stat. 4187

42 U.S.C. 1437g“In determining the Performance Funding System utility subsidy for public housing agencies pursuant to section 9 of the United States Housing Act of 1937 [], the Secretary of Housing and Urban Development shall include a cooling degree day adjustment factor. The method by which a cooling degree day adjustment factor is included shall be identical to the method by which the heating degree day adjustment factor is included.”
, , , provided that:

Energy Efficiency Demonstration

Pub. L. 101–625, title V, § 523104 Stat. 4215Pub. L. 105–276, title V, § 582(a)(11)112 Stat. 2644, , , which directed Secretary of Housing and Urban Development to carry out demonstration program to encourage use of private energy service companies and demonstrate opportunities for energy cost reduction through energy services contracts, and to report findings and recommendations to Congress as soon as practicable after expiration of 1-year period beginning on , was repealed by , , .