Incentivizing landlord participation in Housing Choice Voucher program

(a) One-Time incentive payments Section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)) is amended by adding at the end the following: (23) One-time incentive payments (A) Definition In this paragraph, the term eligible unit means a dwelling unit that— (i) is located in a census tract with a poverty rate of less than 20 percent; and (ii) has not previously been subject to a housing assistance payment contract under this subsection. (B) Incentive payment authority (i) In general To incentivize landlords who own dwelling units in low-poverty areas to enter into housing assistance payment contracts under this subsection, the Secretary shall provide assistance under this paragraph to public housing agencies to be used to offer a one-time payment directly to the owner of an eligible unit entering into a housing assistance payment contract with the public housing agency for the eligible unit. (ii) Amount The amount of an incentive payment made to an eligible owner under clause (i) may not exceed 200 percent of the monthly housing assistance payment made to the eligible owner for the eligible unit. (iii) Conditions permitted Subject to paragraph (7), a public housing agency may require the owner of an eligible unit, as a condition of receiving an incentive payment under clause (i), to commit to lease the eligible unit to tenants assisted under this subsection for more than 1 year. (iv) Limit The owner of an eligible unit may not receive more than 1 incentive payment under clause (i), regardless of— (I) the number of eligible units owned by the owner; or (II) the number of public housing agencies with which the owner has entered into housing assistance payment contracts.. (b) Security deposit payments Section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)), as amended by subsection (a), is amended by adding at the end the following: (24) Security deposit payments (A) Security deposit payment authority The Secretary shall provide assistance to public housing agencies to be used to pay the owner of a dwelling unit assisted under this subsection for a security deposit, or a substantial portion thereof, on behalf of the tenant of the dwelling unit in accordance with subparagraph (B). (B) Minimum PHA requirements A public housing agency that receives assistance from the Secretary under subparagraph (A) shall administer the assistance in accordance with the following conditions: (i) The public housing agency shall pay the owners of dwelling units assisted under this subsection for a security deposit, or a substantial portion thereof, in an amount determined by the public housing agency, on behalf of the tenants of the dwelling units. (ii) In making payments to owners of dwelling units under clause (i), the public housing agency shall give priority to owners of dwelling units occupied by extremely low-income families. (iii) The owner of a dwelling unit may deduct amounts from a security deposit payment received under clause (i) to cover damages beyond normal wear and tear caused by the tenant of the dwelling unit, any member of the tenant’s household, or any guest or other person under the tenant’s control. (iv) The public housing agency shall conduct a damage claims process whereby— (I) in order to deduct amounts from a security deposit payment received under clause (i), the owner of a covered dwelling unit must submit a claim to the public housing agency with an itemized list of damages and evidence and request reimbursement; and (II) the tenant of a covered dwelling unit may refute a claim submitted under subclause (I). (v) The public housing agency shall— (I) establish an amount of repair costs for which a tenant will be responsible; and (II) notify a tenant, upon the tenant entering into a lease for a dwelling unit assisted under this subsection, of the amount described in subclause (I). (vi) The public housing agency may determine what action to take if a tenant demonstrates an inability to pay the amount of repair costs for which the tenant is responsible under clause (v). (vii) At the end of a tenant's occupancy of a dwelling unit assisted under this subsection, the landlord shall return to the public housing agency any unused amount of a security deposit payment received under clause (i). (C) Rule of construction Nothing in subparagraph (B) shall be construed to prohibit a public housing agency from establishing additional conditions for the administration of assistance received under subparagraph (A) in accordance with applicable State and local laws.. (c) Landlord liaison bonus payments Section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)), as amended by subsection (b), is amended by adding at the end the following: (25) Landlord liaison bonus payments (A) In general Each year, the Secretary shall award 1 bonus payment to each public housing agency that employs, contracts with a service partner that employs, or demonstrates an intent to employ or contract with a service partner that employs, not less than 1 dedicated landlord liaison whose duties include, with respect to the tenant-based assistance program under subsection (o)— (i) conducting landlord outreach, recruitment, and retention; (ii) educating and training landlords regarding the program; and (iii) operating a phone hotline, online portal, monitored email address, or other mechanism designated by the Secretary for landlord questions and concerns regarding the program. (B) Demonstrating compliance The Secretary shall determine how a public housing agency may demonstrate that it offers or intends to offer a landlord liaison service for purposes of subparagraph (A). (C) Amount The Secretary shall establish an amount for the landlord liaison bonus payment authorized under subparagraph (A) that— (i) may vary by region; (ii) does not exceed the 150 percent of the average cost of employing, or contracting with a service partner that employs, such a landlord liaison, based on local market conditions; and (iii) is sufficient to incentivize public housing agencies to employ, or contact with a service partner that employs, such a landlord liaison.. (d) Housing Partnership Fund Section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f) is amended by adding at the end the following: (ee) Herschel Lashkowitz Housing Partnership Fund (1) Establishment The Secretary shall establish a fund, to be known as the Herschel Lashkowitz Housing Partnership Fund, for the purpose of incentivizing landlords to participate in the tenant-based assistance program under subsection (o) in accordance with paragraph (2) of this subsection. (2) Authorized uses The Secretary shall use amounts from the Housing Partnership Fund for— (A) incentive payments under subsection (o)(23); (B) security deposit payments under subsection (o)(24); (C) landlord liaison bonus payments under subsection (o)(25); and (D) other uses, as determined by a public housing agency and approved by the Secretary, designed primarily— (i) to recruit owners of dwelling units, particularly dwelling units in census tracts with a poverty rate of less than 20 percent, to enter into housing assistance payment contracts under subsection (o); and (ii) to ensure that owners that enter into housing assistance payment contracts as described in clause (i) of this subparagraph continue to lease their dwelling units to tenants assisted under subsection (o). (3) Reports The Secretary shall require a public housing agency that receives assistance from the Herschel Lashkowitz Housing Partnership Fund to submit an annual report to the Secretary on the use of the assistance. (4) Authorization of additional appropriations There is authorized to be appropriated for deposit in the Herschel Lashkowitz Housing Partnership Fund $100,000,000 for each of fiscal years 2025 through 2029, to remain available until expended..