,i #aafth ,,congress #ast ,session ,h4 ,r4 #cgde ,,in ,,the ,,house ,,of ,,representatives ,july #ab1 #bjai ,mr4 ,lawson of ,florida 7for himself1 ,ms4 ,adams1 ,ms4 ,velzquez1 ,mr4 ,crist1 ,mr4 ,bishop of ,georgia1 ,mr4 ,raskin1 ,ms4 ,norton1 ,mr4 ,mc,govern1 ,ms4 ,pressley1 ,ms4 ,lee of ,california1 ,mrs4 ,carolyn ,b4 ,maloney of ,new ,york1 ,ms4 ,garcia of ,texas1 ,ms4 ,roybal-,allard1 ,mrs4 ,demings1 ,mr4 ,vargas1 and ,mr4 ,lynch7 introduced the following bill2 which was referred to the ,committee on ,financial ,services ,a ,,bill ,to provide physical standards and reform the inspection process for housing assisted under section #h of the ,united ,states ,housing ,act of #aicg1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,,hud ,inspection ,oversight ,act of #bjai4 #b4 ,enforcement of physical condition standards and tenant protection ,section #h7;c7 of the ,united ,states ,housing ,act of #aicg 7#db ,u4,s4,c4 #adcg;f7c77 is amended by adding at the end the following3 7#i7 ,maintenance of property ,any entity receiving housing assistance payments with respect to dwelling units covered by a housing assistance payments contract shall-- 7,a7 maintain decent1 safe1 and sanitary conditions at those dwelling units1 as determined by the ,secretary2 and 7,b7 comply with any standards under applicable ,state or local laws1 rules1 ordinances1 or regulations relating to the physical condition of those dwelling units4 7#aj7 ,enforcement of physical condition standards 7,a7 ,in general ,the ,secretary shall take action under subparagraph 7,c7 against an entity with a housing assistance payments contract for project-based assistance with respect to a multifamily housing project if-- 7i7 the project receives an inspection score of not more than #fj2 or 7ii7 the entity fails to certify in writing to the ,secretary within #c days of receiving the score under clause 7i7 that all exigent health and safety deficiencies identified by the inspector at the project have been corrected4 7,b7 ,applicability ,subparagraph 7,a7 shall-- 7i7 apply with respect to insured and noninsured projects with dwelling units receiving assistance under this section other than under subsection 7o77#ac72 and 7ii7 not apply to dwelling units receiving assistance with capital or operating funds under section #i4 7,c7 ,notification and enforcement 7i7 ,in general ,if an entity violates clause 7i7 or 7ii7 of subparagraph 7,a71 within #ae days after the results of the inspection the ,secretary shall issue the entity a ,notice of ,default1 which shall provide for a reasonable period to cure all project deficiencies and for the entity to provide any response determined appropriate by the ,secretary4 7ii7 ,plan and notice of default ,if violations remain at a project after the expiration of the cure period prescribed by the ,secretary in the ,notice of ,default pursuant to clause 7i71 the ,secretary shall-- 7,i7 develop a remediation plan1 separate from the ,notice of ,default1 and in consultation with tenants or legitimate tenant organizations1 or both1 not later than #de days after the expiration of the cure period prescribed by the ,secretary in the ,notice of ,default1 to bring the project into compliance2 7,,ii7 provide the owner with the remediation plan with a specified timetable1 determined by the ,secretary1 for correcting all project deficiencies1 and 7,,iii7 provide the tenants of the property1 legitimate tenant organizations1 the local government1 any mortgagees1 and any contract administrator of the project with the ,notice of ,default and the remediation plan with the specified timetable1 determined by the ,secretary1 for correcting all deficiencies4 7iii7 ,withdrawal of notice of default ,if an appeal submitted by the entity results in an inspection score of not less than #fj1 the ,secretary may withdraw a ,notice of ,default issued under clause 7ii77,,ii74 7iv7 ,penalties ,if1 at the end of the timetable described in clause 7ii77,,ii71 the entity fails to fully correct all deficiencies in the project1 the ,secretary shall take one or more of the following actions1 and provide additional notice of those actions to the owner1 the tenants of the property1 legitimate tenant organizations1 the local government1 any mortgagees1 and any contract administrator3 7,i7 ,require immediate replacement of project management with a management agent approved by the ,secretary4 7,,ii7 ,impose civil money penalties1 which shall be used solely for the purpose of supporting safe and sanitary conditions at the property1 as designated by the ,secretary1 with priority given to the tenants of the property affected by the penalty4 7,,iii7 ,abate the housing assistance payments contract under this section1 including partial abatement1 as determined by the ,secretary1 until all deficiencies have been corrected4 7,,iv7 ,pursue transfer of the project to an owner1 approved by the ,secretary under established procedures1 which will be obligated to promptly make all required repairs and to accept renewal of the housing assistance payments contract as long as such renewal is offered4 7,v7 ,transfer the existing housing assistance payments contract under this section to another project or projects and owner or owners4 7,,vi7 ,pursue exclusionary sanctions1 including suspensions or debarments from ,federal programs4 7,,vii7 ,seek judicial appointment of a receiver to manage the property and cure all project deficiencies or seek a judicial order of specific performance requiring the owner to cure all project deficiencies4 7,,viii7 ,work with the owner1 lender1 or other related party to stabilize the property in an attempt to preserve the property through compliance1 transfer of ownership1 or an infusion of capital provided by a third-party that requires time to effectuate4 7,,ix7 ,take any other regulatory or contractual remedies available as deemed necessary and appropriate by the ,secretary4 7,d7 ,contracts 7i7 ,in general ,the ,secretary shall take appropriate steps to ensure that project-based contracts remain in effect1 subject to the exercise of contractual abatement remedies to assist relocation of tenants for major threats to health and safety after written notice to and informed consent of the affected tenants and use of other remedies under this paragraph4 7ii7 ,other assistance ,to the extent the ,secretary determines1 in consultation with the tenants1 legitimate tenant organizations1 and the local government1 that a property is not feasible for continued rental assistance payments under this section or other housing programs1 based on consideration of the costs of rehabilitating and operating the property and all available ,federal1 ,state1 and local resources1 including rent adjustments under section #ebd of the ,multifamily ,assisted ,housing ,reform and ,affordability ,act of #aiig 7#db ,u4,s4,c4 #adcg;f note7 and environmental conditions that cannot be remedied in a cost-effective fashion1 the ,secretary may1 in consultation with the tenants of the property and any legitimate tenant organizations1 contract for project-based rental assistance payments with an owner or owners of other existing housing properties1 or provide other rental assistance4 7,e7 ,report 7i7 ,in general ,the ,secretary shall1 on a quarterly basis1 issue a publicly available report on all properties covered by this paragraph that-- 7,i7 are assessed through the ,real ,estate ,assessment ,center2 and 7,,ii7 7aa7 have an inspection score of less than #fj2 or 7bb7 received an unsatisfactory management and occupancy review during the #cf-month period preceding the report4 7ii7 ,contents ,each report issued under clause 7i7 shall include specific information1 disaggregated by the property to which it relates1 regarding-- 7,i7 the enforcement actions being taken to address the physical conditions of the properties covered in the report1 including imposition of civil money penalties and termination of subsidies1 and identify properties that have those conditions multiple times2 7,,ii7 actions that the ,department of ,housing and ,urban ,development is taking to protect tenants of those properties2 and 7,,iii7 any administrative or legislative recommendations to further improve the living conditions at each property covered under a housing assistance payments contract4 7#aa7 ,tenant protection 7,a7 ,in general ,the ,secretary may provide tenant-based assistance for dwelling units covered under a project-based assistance subsidy contract if-- 7i7 the owner of the dwelling units has received a ,notice of ,default2 and 7ii7 the dwelling units pose an imminent health and safety risk to the tenants of those dwelling units4 7,b7 ,reimbursements ,to the extent that the ,secretary determines that dwelling units described in subparagraph 7,a7 are not feasible for continued rental assistance payments or transfer of the project-based assistance subsidy contract associated with those dwelling units to another project or projects and owner or owners1 any remaining amounts associated with those dwelling units shall be recaptured and used to reimburse amounts used for tenant-based assistance under subparagraph 7,a74 4 #c4 ,standards for physical condition and management of housing receiving assistance payments ,section #h of the ,united ,states ,housing ,act of #aicg 7#db ,u4,s4,c4 #adcg;f7 is amended by inserting after subsection 7v7 the following3 7w7 ,standards for physical condition and management of housing receiving assistance payments 7#a7 ,standards for physical condition and management of housing ,any entity receiving assistance payments under this section shall maintain decent1 safe1 and sanitary conditions1 as determined by the ,secretary1 for any structure covered under a housing assistance payment contract4 7#b7 ,survey of tenants 7,a7 ,in general ,the ,secretary shall1 on a semiannual basis1 conduct a survey of the tenants of each structure covered under a housing assistance payment contract for the purpose of identifying consistent or persistent problems with the physical condition of the structure or performance of the manager of the structure4 7,b7 ,confidentiality ,the ,secretary shall ensure that the surveys pursuant to subparagraph 7,a7 are conducted in an anonymous manner such that the identities of tenants identifying such problems through such survey are not disclosed4 7#c7 ,remediation ,if a consistent or persistent problem with the structure or the management of the structure covered under a housing assistance payment contract is identified-- 7,a7 by the ,secretary pursuant a survey conducted under paragraph 7#b71 the ,secretary shall undertake remediation for the structure or manager2 or 7,b7 by the ,performance-,based ,contract ,administrator based on any other observation made by the ,administrator during the normal course of business1 the ,administrator shall refer the structure or manager to the ,secretary for remediation4 7#d7 ,penalty for failure to uphold standards 7,a7 ,in general ,the ,secretary may impose a penalty on any owner of a structure covered under a housing assistance payment contract if the ,secretary finds that the structure or manager of the structure-- 7i7 did not satisfactorily meet the requirements under paragraph 7#a72 or 7ii7 is repeatedly referred to the ,secretary for remediation by a ,performance-,based ,contract ,administrator through the process established under paragraph 7#c74 7,b7 ,amount ,a penalty imposed under subparagraph 7,a7 shall be in an amount equal to not less than #a percent of the annual budget authority the owner is allocated under a housing assistance payment contract4 7,c7 ,use of amounts ,any amounts collected under this paragraph shall be used solely for the purpose of supporting safe and sanitary conditions at applicable structures or for tenant relocation1 as designated by the ,secretary1 with priority given to the tenants of the structure that led to the penalty4 7#e7 ,applicability ,this subsection shall not apply to any property assisted under subsection 7o74 4