UNITED STATES HOUSING ACT OF 1937

[Public Law 93–383; 88 Stat. 653; 42 U.S.C. 1437 et seq.]

TITLE I-GENERAL PROGRAM OF ASSISTED HOUSING

SHORT TITLE

SECTION 1. This Act may be cited as the "United States Housing Act of 1937". [42 U.S.C. 1437 note]

DECLARATION OF POLICY

SEC. 2. It is the policy of the United States to promote the general welfare of the Nation by employing its funds and credit, as provided in this Act, to assist the several States and their political subdivisions to remedy the unsafe and unsanitary housing conditions and the acute shortage of decent, safe, and sanitary dwellings for families of lower income and, consistent with the objectives of this Act, to vest in local public housing agencies the maximum amount of responsibility in the administration of their housing programs. No person should be barred from serving on the board of directors or similar governing body of a local public housing agency because of his tenancy in a low-income housing project. [42 U.S.C. 1437]

RENTAL PAYMENTS; DEFINITIONS

SEC. 3. (a)(1) Dwelling units assisted under this Act shall be rented only to families who are low-income families at the time of their initial occupancy of such units. Reviews of family income shall be made at least annually. Except as provided in paragraph (2), a family shall pay as rent for a dwelling unit assisted under this Act (other than a family assisted under section 8(0) or (y) or paying rent under section 8(c)(3)(B)) 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 specifically designated by such agency to meet the family's housing costs, the portion of such payments which is so designated.

(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 8 that contains more than 2,000 dwelling units) shall pay as monthly rent an

amount determined by such agency to be appropriate 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 the date of enactment of the Department of Housing and Urban Development Reform Act of 19891 shall be extended without time limitation.

(b) When used in this Act:

(1) The term "low-income housing" means decent, safe, and sanitary dwellings assisted under this Act. The term "public housing" means low-income housing, and all necessary appurtenances thereto, assisted under this Act other than under section 8. When used in reference to public housing, the term "low-income housing project" or "project" means (A) housing developed, acquired, or assisted by a public housing agency under this Act, and (B) the improvement of any such housing.

(2) 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 adjustments for smaller and larger families, except that the Secretary may establish income ceilings higher or lower than 80 per centum of the median for the area on the basis of the Secretary's findings that such variations are necessary because of prevailing levels of construction costs or unusually high or low family incomes. 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 Secretary with adjustments for smaller and larger families, except that the Secretary may establish 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. Such ceilings shall be established in consultation with the Secretary of Agriculture for any rural area, as defined in section 520 of the Housing Act of 1949, taking into account the subsidy characteristics and types of programs to which such ceilings apply. In determining median incomes (of persons, families, or households) for an area or establishing any ceilings or limits based on income under this Act, the Secretary shall determine or establish area median incomes and income ceilings and limits for Westchester County, in the State of New York, as if 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 metropolitan statistical area that does not include Westchester County, the Secretary shall deter

1 December 15, 1989.

mine or establish area median incomes and income ceilings and limits as if such portion included Westchester County.

(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 disabled person, (iii) a displaced person, (iv) the remaining member of a tenant family, and (v) any other single persons. In no event may any single person under clause (v) of the first sentence be provided a housing unit assisted under this Act of 2 or more bedrooms. In determining priority for admission to housing under this Act, the Secretary shall give preference to single persons who are elderly, disabled, or displaced persons before single persons who are eligible under clause (v) of the first sentence.

(B) FAMILIES.-The term "families" includes families with children and, in the cases of elderly families, near-elderly families, and disabled families, means families whose heads (or their spouses), or whose sole members, are elderly, near-elderly, or persons with disabilities, respectively. The term includes, in the cases of elderly families, near-elderly families, and disabled families, 2 or more elderly persons, near-elderly persons, or persons with disabilities living together, and 1 or more such persons living with 1 or more persons determined under the regulations of the Secretary to be essential to their care or well-being.

(C) ABSENCE OF CHILDREN.-The temporary absence of a child from the home due to placement 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

(i) has a disability as defined in section 223 of the Social Security Act,

(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 indefinite 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 defined in section 102 of the Developmental Disabilities Assistance and Bill of Rights Act.

Such term shall not exclude persons who have the disease of acquired immunodeficiency syndrome or any conditions arising from the etiologic agent for acquired immunodeficiency syndrome.

(F) DISPLACED PERSON.-The term "displaced person" means a person displaced by governmental action, or a person whose dwelling has been extensively damaged or destroyed as a result of a disaster declared or otherwise formally 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) The term "income" means income from all sources of each member of the household, as determined in accordance with criteria prescribed by the Secretary, in consultation with the Secretary of Agriculture, except that any amounts not actually received by the family1 and any amounts which would be eligible for exclusion under section 1613(a)(7) of the Social Security Act (42 U.S.C. 1382b(a)(7))2 may not be considered as income under this paragraph. 3

(5) The term "adjusted income" means the income which remains after excluding

(A) $550 for each member of the family residing in the household (other than the head of the household or his spouse) who is under 18 years or age or who is 18 years of age or older and is disabled or handicapped or a fulltime student;

(B) $400 for any elderly or disabled family;

(C) the amount by which the aggregate of the following expenses of the family exceeds 3 percent of annual family income: (i) medical expenses for any family; 5 and (ii) reasonable attendant care and auxiliary apparatus expenses for each handicapped member of any family, to the extent necessary to enable any member of such family (including such handicapped member) to be employed;

1 Section 573(b) of the Cranston-Gonzalez National Affordable Housing Act, Pub. L. 101-625, amended this paragraph to exclude from consideration as income amounts not received by a family. Section 573(e) of such Act provides as follows:

"(e) BUDGET COMPLIANCE.-The amendments made by subsections (b) and (c) shall apply only to the extent approved in appropriations Acts.".

Section 103(b) of the Housing and Community Development Act of 1992, Pub. L. 102-550, approved October 28, 1992, provides as follows:

“(b) APPLICABILITY OF DEFINITIONS TO INDIAN HOUSING.

“(1) IN GENERAL.-In accordance with section 201(b)(2) of the United States Housing Act of 1937 (42 U.S.C. 1437aa(b)(2)), the provisions of sections 572, 573, and 574 of the Cranston-Gonzalez National Affordable Housing Act shall apply to public housing developed or operated pursuant to a contract between the Secretary of Housing and Urban Development and an Indian Housing Authority.

“(2) EFFECTIVE DATE.-Paragraph (1) shall take effect as if such provision were enacted upon the date of the enactment of the Cranston-Gonzalez National Affordable Housing Act.". 2 Section 103(a)(1) of the Housing and Community Development Act of 1992, Pub. L. 102-550, amended this paragraph to exclude from consideration as income the amounts eligible for exclusion under the Social Security Act.

Paragraph (3) of such section 103(a) provides as follows:

"(3) BUDGET COMPLIANCE.-To the extent that the amendments made by paragraphs (1) and (2) result in additional costs under this title, such amendments shall be effective only to the extent that amounts to cover such additional costs are provided in advance in appropriation Acts.".

3 Other Federal laws exclude various amounts from consideration as income for purposes of housing assistance. See, for example, the exclusion provided by section 509 of the Older Americans Act of 1965 (42 U.S.C. 3056g).

Section 573(c)(1) of the Cranston-Gonzalez National Affordable Housing Act, Pub. L. 101625, increased the exclusion from income under this subparagraph from $480 to $550. Subsection (e) of such section 573 provides as shown in footnote 1, on this page. Section 103(b) of the Housing and Community Development Act of 1992, Public Law 102-550, provides as shown in footnote 1, on this page.

5 Section 573(c)(2) of the Cranston-Gonzalez National Affordable Housing Act, Pub. L. 101625, amended this subparagraph by expanding the exclusion from income for medical expenses to nonelderly families, as well as elderly families. Subsection (e) of such section 573 provides as shown in footnote 1, on this page.

(D) child care expenses to the extent necessary to enable another member of the family to be employed or to further his or her education;

(E) 10 percent of the earned income of the family; 2

(F) any payment made by a member of the family for the support and maintenance of any child, spouse, or former spouse who does not reside in the household, except that the amount excluded under this subparagraph shall not exceed the lesser of (i) the amount that such family member has a legal obligation to pay; or (ii) $550 for each individual for whom such payment is made; 2 and

(G) 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 assisted by Indian housing authorities.

(6) 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 development or operation of low-income housing. The term includes any Indian housing authority.

(7) The term "State" includes the several States, the District of Columbia, the Commonwealth of Puerto Rico, the territories and possessions of the United States, the Trust Territory of the Pacific Islands, and Indian tribes.

(8) The term "Secretary" means the Secretary of Housing and Urban Development.

(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 provide low-income housing.

(11) The term "Indian housing authority" means any entity that

(A) is authorized to engage in or assist in the development or operation of low-income housing for Indians; 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 specifically 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 Alaska Natives.

(c) When used in reference to public housing:

1 Section 103(a)(2) of the Housing and Community Development Act of 1992, Pub. L. 102-550, amended this subparagraph to read as shown. Paragraph (3) of such section 103(a) provides as shown in footnote 2, on the preceding page.

2 Section 573(c)(3) of the Cranston-Gonzalez National Affordable Housing Act, Pub. L. 101625, added this subparagraph. Subsection (e) of such section 573 provides as shown in footnote 1, on the preceding page. Section 103(b) of the Housing and Community Development Act of 1992, Pub. L. 102-550, provides as shown in footnote 1, on the preceding page.

3 Section 103(a)(2) of the Housing and Community Development Act of 1992, Pub. L. 102-550, added this subparagraph. Paragraph (3) of such section 103(a) provides as shown in footnote 2, on the preceding page.