,i #aadth ,,congress #ast ,session ,h4 ,r4 #cfig ,,in ,,the ,,house ,,of ,,representatives ,october #g1 #bjae ,ms4 ,velzquez introduced the following bill2 which was referred to the ,committee on ,financial ,services ,a ,,bill ,to modernize and improve the program for economic opportunities for low-income persons under section #c of the ,housing and ,urban ,development ,act of #aifh1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,section #c ,modernization and ,improvement ,act of #bjae4 #b4 ,congressional findings ,the ,congress finds that-- 7#a7 funds administered by the ,department of ,housing and ,urban ,development1 particularly those intended for housing construction1 rehabilitation1 repair1 modernization1 management1 self-sufficiency1 community development1 and other public construction1 provide ,state and local governments1 housing providers1 and other recipients of this ,federal financial assistance with substantial funds for projects and activities that produce significant economic opportunities for the communities where the funds are expended2 7#b7 low- and very low-income persons1 especially recipients of government assistance for housing1 often face barriers to access training1 employment1 and contracting opportunities resulting from the expenditure of ,federal funds in their communities2 7#c7 training1 employment1 and contracting opportunities generated by projects and activities that receive assistance from the ,department of ,housing and ,urban ,development offer an effective means of empowering low- and very low-income persons and local businesses that provide training and job opportunities for such persons2 7#d7 past ,federal efforts to direct training1 employment1 and contracting opportunities generated by programs administered by the ,secretary of ,housing and ,urban ,development to low- and very low-income persons1 and businesses that provide training and job opportunities for such persons1 have not been fully effective and should be intensified2 and 7#e7 funding provided to other ,federal agencies may also produce significant employment and contracting opportunities for the communities where the funds are expended4 #c4 ,reporting2 sanctions for noncompliance ,section #c of the ,housing and ,urban ,development ,act of #aifh 7#ab ,u4,s4,c4 #agjau7 is amended-- 7#a7 by redesignating subsection 7g7 as subsection 7k72 and 7#b7 by inserting after subsection 7f7 the following new subsections3 7g7 ,reports 7#a7 ,recipient reports to ,,hud 7,a7 ,requirement ,each recipient of assistance referred to in subsection 7c7 or 7d7 7in this section referred to as a recipient7 shall report annually to the ,secretary on their compliance with the employment and contracting requirements and on their contractors and subcontractors performance4 ,recipients shall ensure that their contractors and subcontractors provide them with any information necessary to make such reports4 7,b7 ,information regarding failure to meet employment and contracting requirement ,for any period during which a recipient1 or their contractor or subcontractor1 did not meet their employment or contracting requirement under subsection 7c7 or 7d71 the report shall describe actions that were taken to meet the requirement1 including actions taken or that will be taken in future funding opportunities to address the deficiencies in the actions that resulted in failure to meet employment and contracting requirements4 7,c7 ,monthly reports by subrecipients ,each recipient shall require any entity that is a subrecipient of such recipient for assistance referred to in subsection 7c7 or 7d7 to submit a report to such recipient monthly containing such information as the ,secretary shall require to ensure that the recipient can comply with this paragraph4 7,d7 ,public availability ,each report pursuant to this paragraph 7including reports under subparagraph 7,c77 shall be made publicly available1 in its entirety1 not later than #ae business days after the end of the period covered by the report4 ,such availability shall include posting reports on a publicly accessible website on the ,world ,wide ,web and making printed and electronic copies publicly available upon request at no charge4 7#b7 ,annual ,,hud reports to ,congress 7,a7 ,requirement ,the ,secretary shall submit a report annually to the ,congress that provides a summary of the information contained in the reports submitted pursuant to paragraph 7#a74 ,such annual report shall provide information on the total amount of ,federal funds that are subject to this section1 by program area and geographical jurisdiction1 and the outcomes produced1 including specific information on the amount of training1 jobs1 and contracting opportunities generated by such funds4 7,b7 ,assessment of noncompliance ,each report under this paragraph shall include-- 7i7 an assessment of any noncompliance by any recipients with the requirements of this section1 by ,state2 7ii7 specific recommendations regarding actions to reduce and eliminate such noncompliance2 and 7iii7 any sanctions imposed pursuant to subsection 7h7 for such noncompliance4 7,c7 ,review of effectiveness ,each report under this paragraph shall include a review of the effectiveness of the program under this section in providing jobs for low- and very low-income persons1 meeting unmet training and job readiness needs in the community1 enabling low- and very low-income persons to hold a steady job1 providing contracting opportunities for businesses that qualify for priority under paragraphs 7#a77;,b7 and 7#b77;,b7 of subsection 7d71 and any recommendations the ,secretary determines appropriate regarding the program under this section4 7#c7 ,,gao report ,not later than the expiration of the two-year period beginning on the date of the enactment of the ,section #c ,modernization and ,improvement ,act of #bjae1 the ,comptroller ,general of the ,united ,states shall submit a report to the ,congress regarding the implementation of this section 7as amended by such ,act71 that-- 7,a7 specifically describes the extent of compliance with this section1 the amount of funds awarded that were covered by this section1 and outcomes2 and 7,b7 makes recommendations to improve the effectiveness of this section and for when a subsequent such report should be required4 7h7 ,noncompliance 7#a7 ,investigation and determination ,in carrying out this section1 the ,secretary shall develop and implement procedures to assess compliance with the requirements of this section1 to review complaints alleging noncompliance by any recipient or contractor with the requirements of this section1 to make determinations as to whether such noncompliance has occurred1 and to take such actions as provided in this subsection as the ,secretary determines appropriate to ensure compliance and prevent future noncompliance4 7#b7 ,timely assessment ,the procedures required under paragraph 7#a7 shall include measures that ensure that recipients and contractors are in compliance with the requirements of this section during the use of assistance referred to in subsection 7c7 or 7d71 including a requirement to report to the ,secretary regarding compliance on a monthly basis and a requirement that the ,secretary assess compliance by each recipient and contractor not less frequently than once every #c months4 7#c7 ,sanctions 7,a7 ,establishment ,the ,secretary shall develop and implement policies and procedures for imposition of a series of administrative sanctions1 graduated in severity1 which shall be applied to recipients and their contractors and subcontractors that are determined do not comply with this section or the requirements established under the program under this section4 7,b7 ,automatic sanctions ,such sanctions shall include certain measures1 or a series of measures1 that are applied in all instances of a determination of a failure to comply with certain requirements of this section or with certain requirements established under this program under this section1 and shall not be subject to any discretion on the part of the ,secretary as to whether to apply such measure or measures4 7,c7 ,actions ,such sanctions shall include-- 7i7 requiring a recipient to enter into a compliance agreement with the ,secretary is specifically designed to bring the recipient into compliance and provide for the creation of additional employment opportunities and1 if such recipient refuses to enter into such agreement1 recapture by the ,secretary1 from amounts provided to the recipient that were subject to this section1 of an amount equal to the amount that was required under this section to be used to give low- and very low-income persons training and employment opportunities or economic opportunities but was not so used2 7ii7 reduction of future funds from the ,department1 including any discretionary funds available under the ,choice ,neighborhoods ,initiative under section #bd of the ,united ,states ,housing ,act of #aicg 7#db ,u4,s4,c4 #adcgv7 and the rental assistance demonstration program 7as such term is defined in subsection 7e7 of this section72 7iii7 debarment and suspension from1 and limited denial of participation in programs of the ,department2 and 7iv7 such other sanctions as the ,secretary determines appropriate to discourage noncompliance4 4 #d4 ,coverage of ,rental ,assistance ,demonstration properties 7a7 ,employment ,subsection 7c7 of section #c of the ,housing and ,urban ,development ,act of #aifh 7#ab ,u4,s4,c4 #agjau7c77 is amended-- 7#a7 in paragraph 7#b71 by inserting before the first comma the following3 7not including the rental assistance demonstration program72 and 7#b7 by adding at the end the following new paragraph3 7#c7 ,rental assistance demonstration program 7,a7 ,in general ,the ,secretary shall require that public housing agencies and owners of multifamily properties assisted under the rental assistance demonstration program1 and their contractors and subcontractors1 make their best efforts1 consistent with existing ,federal1 ,state1 and local laws and regulations1 to give to low- and very low-income persons all the training and employment opportunities generated by or in such properties1 including such opportunities not involving property construction or rehabilitation 7which shall include opportunities involving administration1 management1 service1 and maintenance7 and including such opportunities generated by assistance provided under the rental assistance demonstration program4 7,b7 ,priority ,the efforts required under subparagraph 7,a7 shall be directed in the following order of priority3 7i7 ,to residents of the housing developments for which the assistance is expended4 7ii7 ,to residents of other developments managed by the public housing agency1 if applicable1 that is expending the assistance4 7iii7 ,to participants in ,youth,build programs receiving assistance under section #aga of the ,workforce ,innovation and ,opportunity ,act4 7iv7 ,to other low- and very low-income persons residing within the metropolitan area 7or nonmetropolitan county7 in which the assistance is expended4 4 7b7 ,contracting ,subsection 7d7 of section #c of the ,housing and ,urban ,development ,act of #aifh 7#ab ,u4,s4,c4 #agjau7d77 is amended-- 7#a7 in paragraph 7#b71 by inserting before the first comma the following3 7not including the rental assistance demonstration program72 and 7#b7 by adding at the end the following new paragraph3 7#c7 ,rental assistance demonstration program 7,a7 ,in general ,the ,secretary shall require that public housing agencies and owners of multifamily properties assisted under the rental assistance demonstration program1 and their contractors and subcontractors1 make their best efforts1 consistent with existing ,federal1 ,state1 and local laws and regulations1 to award contracts for work to be performed in connection with such properties1 including work that does not involve property construction or rehabilitation 7which shall include administration1 management1 service1 and maintenance work7 and including work in connection assistance provided under the rental assistance demonstration program1 to business concerns that provide economic opportunities for low- and very low-income persons4 7,b7 ,priority ,the efforts required under subparagraph 7,a7 shall be directed in the following order of priority3 7i7 ,to business concerns that provide economic opportunities for residents of the housing development for which the assistance is provided4 7ii7 ,to business concerns that provide economic opportunities for residents of other housing developments operated by the public housing agency1 if applicable1 that is providing the assistance4 7iii7 ,to ,youth,build programs receiving assistance under section #aga of the ,workforce ,innovation and ,opportunity ,act4 7iv7 ,to business concerns that provide economic opportunities for low- and very low-income persons residing within the metropolitan area 7or nonmetropolitan county7 in which the assistance is provided4 4 7c7 ,definition ,subsection 7e7 of section #c of the ,housing and ,urban ,development ,act of #aifh 7#ab ,u4,s4,c4 #agjau7e77 is amended by adding at the end the following new paragraph3 7#c7 ,rental assistance demonstration program ,the term rental assistance demonstration program means the demonstration program of the ,secretary of ,housing and ,urban ,development conducted pursuant to the heading ,rental ,assistance ,demonstration in title ,,ii of the ,transportation1 ,housing and ,urban ,development1 and ,related ,agencies ,appropriations ,act1 #bjab 7division ,c of ,public ,law #aab-ee2 #abe ,stat4 #fgc71 as amended4 4