Entitlement program for housing choice vouchers

(a) Entitlement During fiscal year 2029 and each fiscal year thereafter, any family that is otherwise eligible for tenant-based rental assistance under section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)) shall be entitled to such rental assistance in accordance with this section during such period that such family meets the requirements under subsection (c) or (d) as a qualified family. (b) Funding For fiscal year 2029 and each fiscal year thereafter, there is appropriated out of any money in the Treasury not otherwise appropriated the amount necessary— (1) to provide assistance under section 8(o) of the United States Housing Act of 1937 in accordance with the entitlement under subsection (a) of this section for each qualified family in the amount determined under such section 8(o); and (2) to provide administrative fees under such section 8(q), as modified pursuant to subsection (i) of this section, in connection with each voucher for assistance provided pursuant to paragraph (1) of this subsection. (c) Qualified families For purposes of this section, the term qualified family means the following: (1) Fiscal year 2029 For fiscal year 2029, a family that meets the requirements under section 2(b) of this Act. (2) Fiscal year 2030 For fiscal year 2030, a family having an income that— (A) meets the requirements under section 2(b) of this Act; or (B) does not exceed 75 percent of the maximum income limitation for extremely low-income families established by the Secretary pursuant to section 3(b)(2)(C) of the United States Housing Act of 1937. (3) Fiscal year 2031 For fiscal year 2031, an extremely low-income family. (4) Fiscal year 2032 For fiscal year 2032, a very low-income family. (5) Fiscal year 2033 and after For fiscal year 2033 and each fiscal year thereafter, a low-income family. (d) Continuing eligibility A family shall meet the requirements under this subsection as a qualifying family if the family— (1) does not meet the requirements under subsection (c); and (2) was initially assisted under this section or section 2 of this Act and continues to be assisted. (e) Repeal of income targeting requirement Effective October 1, 2030, section 16 of the United States Housing Act of 1937 (42 U.S.C. 1437n) is amended by striking subsection (b). (f) Administering agencies (1) Regional consortia The Secretary shall encourage and provide for public housing agencies to form regional consortia to administer the program for rental assistance under this section with respect to geographical areas. (2) PHA designation The Secretary shall designate a public housing agency to administer assistance under this section in any area where no existing public housing agency has jurisdiction or where no agency with jurisdiction is adequately administering such assistance, subject to public comment and after consultation with States, public housing agencies, local governments, Indian tribes, and tribally designated housing agencies. (g) Use of small area fair market rents Paragraph (1) of section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(1)) is amended— (1) in subparagraph (B), by striking subparagraph (D) and inserting subparagraphs (D) and (F); and (2) by adding at the end the following new subparagraph: (F) Use of small area fair market rents Except with respect to any metropolitan statistical area with a vacancy rate of 4 percent or less, effective for fiscal year 2025 and each fiscal year thereafter, the area fair market rents used for purposes of subparagraph (B) shall be established by the Secretary for ZIP Code areas.. (h) Project-Basing (1) In general Notwithstanding subparagraph (A) of paragraph (13) of section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(13)(A)), a public housing agency administering assistance under this section may enter into agreements to attach such assistance to a project in accordance with such paragraph, except that— (A) a qualified family residing in a dwelling unit so assisted may at any time opt to use such assistance on a tenant-based basis for a different dwelling unit and, upon such a move, the public housing agency shall provide the qualified family with tenant-based rental assistance under this section; and (B) subparagraph (B) of such section 8(o)(13) (relating to percentage limitation) shall not apply with respect to assistance under this section. (2) Percentage limitation For purposes of section 8(o)(13)(B) of the United States Housing Act of 1937, all families assisted by a public housing agency under this section shall be counted as authorized units for the agency. (i) Security deposits (1) Authority An agency administering assistance under this section may authorize a qualified family assisted under this section to use such assistance for security deposits and broker and application fees relating to obtaining a dwelling unit, except that the Secretary may establish a limitation on the amount of such assistance used pursuant to this subsection and for each authorized purpose under this subsection. (2) Recapture The Secretary shall require the return to the Secretary of any amounts used for a security deposit with respect to a dwelling unit upon the termination of the residence in such unit by an assisted family. (j) Administrative fees Notwithstanding the administrative fee with respect to tenant-based assistance in effect on October 1, 2023, pursuant to section 8(q) of the United States Housing Act of 1937 (42 U.S.C. 1437f(q)), the Secretary shall, by regulation, establish a new administrative fee for such assistance, applicable to fiscal year 2025 and thereafter, that reflects local variation in the cost of administering a well-run housing choice voucher program and which encourages public housing agencies to expand housing choice for assisted families and increase the rate at which families issued vouchers use them successfully to lease housing. (k) Prohibition of use under Moving to Work program None of the amounts made available by subsection (b) of this section or by section 2 of this Act may be used under, to carry out, or otherwise in connection with the Moving to Work demonstration program authorized by section 204 of the Departments of Veterans Affairs and Housing and Urban Development and Independent Agencies Appropriations Act, 1996 (Public Law 104–134; 110 Stat. 1321), as expanded by section 239 of the Transportation, Housing and Urban Development, and Related Agencies Appropriations Act, 2016 (division L of Public Law 114–113; 129 Stat. 2897) or any other provision of law. (l) Definitions For purposes of this section, the following definitions shall apply: (1) Indian tribe; tribally designated housing agency The terms Indian tribe and tribally designated housing agency have the meanings given such terms in section 4 of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4103). (2) Low-income family; very low-income family; extremely low-income family The terms low-income family, very low-income family, and extremely low-income family have the meanings given such terms in section 3(b) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)). (3) Public housing agency The term public housing agency has the meaning given such term in section 3(b) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)). (4) Secretary The term Secretary means the Secretary of Housing and Urban Development. (5) State The term State has the meaning given such term in section 3(b) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)).