,i #aafth ,,congress #ast ,session ,h4 ,r4 #djbc ,,in ,,the ,,house ,,of ,,representatives ,july #be1 #bjai,mr4 ,ferguson introduced the following bill2 which was referred to the ,committee on ,financial ,services ,a ,,bill ,to reform the inspection process of housing assisted by the ,department of ,housing and ,urban ,development1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,,hud ,inspection ,process and ,enforcement ,reform ,act of #bjai4 #b4 ,reduction in grade or pay or removal for misconduct or performance of employees of the ,department of ,housing and ,urban ,development 7a7 ,in general ,section #g7;c7 of the ,department of ,housing and ,urban ,development ,act 7#db ,u4,s4,c4 #cece7;c77 is amended-- 7#a7 by striking ,the ,secretary is authorized and inserting the following3 8,employment1 compensation1 authority1 and duties of personnel4-- 7#a7 ,in general ,the ,secretary is authorized 2 and 7#b7 by adding at the end the following3 7#b7 ,reduction in grade or pay or removal for misconduct or performance of employees 7,a7 ,definitions ,for purposes of this paragraph-- 7i7 the term covered employee-- 7,i7 means an individual holding a position in the civil service in the ,department2 and 7,,ii7 does not include any individual-- 7aa7 holding in a position described under sections #ecab through #ecaf of title #e1 ,united ,states ,code 7relating to the ,executive ,schedule72 7bb7 holding a position as a limited term appointee1 limited emergency appointee1 or noncareer appointee in the ,senior ,executive ,service1 as defined under paragraphs 7#e71 7#f71 and 7#g71 respectively1 of section #cacb7;a7 of title #e1 ,united ,states ,code2 or 7cc7 holding a position of a confidential or policy-determining character under schedule ,c of subpart ,c of part #bac of title #e1 ,code of ,federal ,regulations2 7ii7 the term grade means a level of classification under a position classification system2 7iii7 the term misconduct includes neglect of duty1 malfeasance1 or failure to accept a directed reassignment or to accompany a position in a transfer of function2 and 7iv7 the term pay means the rate of basic pay fixed by law or administrative action for the position held by a covered employee4 7,b7 ,actions covered ,this paragraph-- 7i7 applies to a reduction in grade or pay or removal2 and 7ii7 does not apply to-- 7,i7 a reduction in grade or pay or removal under section #geab of title #e1 ,united ,states ,code2 7,,ii7 a reduction in grade or pay or removal under section #geba of title #e1 ,united ,states ,code2 7,,iii7 a removal under section #gecb of title #e1 ,united ,states ,code2 or 7,,iv7 a removal under section #ceib1 #ceie1 or #gedc of title #e1 ,united ,states ,code4 7,c7 ,cause and procedure 7i7 ,in general ,notwithstanding any other provision of law1 under regulations prescribed by the ,office of ,personnel ,management1 the ,secretary may1 if the ,secretary determines that the misconduct or performance of a covered employee warrants such action-- 7,i7 remove the covered employee from the civil service2 7,,ii7 reduce the grade of the covered employee2 or 7,,iii7 reduce the pay of the covered employee4 7ii7 ,reduction in grade ,a covered employee subject to a reduction in grade under clause 7i77,,ii7 shall1 beginning on the date that the reduction takes effect1 receive the annual rate of pay applicable to the reduced grade4 7iii7 ,appeal procedures 7,i7 ,in general ,subject to subclause 7,,ii7 and clause 7iv71 any reduction in grade or pay or removal under this paragraph may be appealed to the ,merit ,systems ,protection ,board under section #ggja of title #e1 ,united ,states ,code4 7,,ii7 ,time for appeal ,an appeal under subclause 7,i7 may only be made if such appeal is made not later than #g days after the date of such reduction in grade or pay or removal4 7iv7 ,review on appeal 7,i7 ,in general ,upon receipt of an appeal under clause 7iii71 the ,merit ,systems ,protection ,board shall refer the appeal to an administrative law judge pursuant to section #ggja7;b77#a7 of title #e1 ,united ,states ,code4 ,the administrative law judge shall expedite any such appeal under such section and1 in any such case1 shall issue a decision not later than #de days after the date that the ,board receives the appeal4 7,,ii7 ,information and assistance ,to the maximum extent practicable1 the ,secretary shall provide to the ,merit ,systems ,protection ,board1 and to any administrative law judge to whom an appeal under this paragraph is referred1 such information and assistance as may be necessary to ensure an appeal under this paragraph is expedited4 7,,iii7 ,finality ,notwithstanding any other provision of law1 including section #ggjc of title #e1 ,united ,states ,code1 the decision of an administrative law judge under subclause 7,i7 shall be final and shall not be subject to any further appeal4 7,,iv7 ,delayed decision ,in any case in which the administrative law judge cannot issue a decision in accordance with the #de-;day requirement under subclause 7,i71 the reduction in grade or pay or removal is final4 ,in such a case1 the ,merit ,systems ,protection ,board shall1 within #ad days after the date that such reduction in grade or pay or removal is final1 submit to ,congress a report that explains the reasons why a decision was not issued in accordance with such requirement4 7,v7 ,no stays ,the ,merit ,systems ,protection ,board or administrative law judge may not stay any reduction in grade or pay or removal action under this paragraph4 7,,vi7 ,effect of appeal of removal ,during the period beginning on the date on which a covered employee appeals a removal from the civil service under this paragraph and ending on the date that the administrative law judge issues a final decision on such appeal1 the covered employee may not receive any pay1 awards1 bonuses1 incentives1 allowances1 differentials1 student loan repayments1 special payments1 or benefits4 7v7 ,whistleblower protection ,in the case of a covered employee seeking corrective action 7or on behalf of whom corrective action is sought7 from the ,office of ,special ,counsel based on an alleged prohibited personnel practice described in section #bcjb7;b7 of title #e1 ,united ,states ,code1 the ,secretary may not reduce the grade or pay or remove the covered employee under this paragraph without the approval of the ,special ,counsel under section #abad7;f7 of title #e1 ,united ,states ,code4 4 7b7 ,application ,the authority under paragraph 7#b7 of section #g7;c7 of the ,department of ,housing and ,urban ,development ,act1 as added by subsection 7a71 shall apply to any covered employee 7as defined in such paragraph7 appointed before1 on1 or after the date of enactment of this ,act4 7c7 ,conforming amendments ,title #e1 ,united ,states ,code1 is amended-- 7#a7 in section #dcjc7;f7-- 7,a7 in paragraph 7#c71 by striking or at the end2 7,b7 in paragraph 7#d71 by striking the period at the end and inserting 1 or2 and 7,c7 by adding at the end the following3 7#e7 the reduction in grade or removal of an employee under section #g7;c77#b7 of the ,department of ,housing and ,urban ,development ,act 7#db ,u4,s4,c4 #cece7;c77#b774 2 7#b7 in section #geab-- 7,a7 in subparagraph 7,e71 by striking 2 or and inserting a comma2 7,b7 in subparagraph 7,f71 by striking the period at the end and inserting 1 or2 and 7,c7 by adding at the end the following3 7,g7 a reduction in grade or pay or removal under section #g7;c77#b7 of the ,department of ,housing and ,urban ,development ,act 7#db ,u4,s4,c4 #cece7;c77#b774 2 7#c7 in section #geba7;b71 in the matter following paragraph 7#e7-- 7,a7 in subparagraph 7,b71 by striking or at the end2 7,b7 in subparagraph 7,c71 by striking the period at the end and inserting 2 or2 and 7,c7 by adding at the end the following3 7,d7 a reduction in grade or pay or removal under section #g7;c77#b7 of the ,department of ,housing and ,urban ,development ,act 7#db ,u4,s4,c4 #cece7;c77#b774 2 and 7#d7 in section #gedb1 by striking or to a removal under section #ceib or #ceie of this title and inserting to a removal under section #ceib or #ceie of this title1 to an action under section #gac of title #ch1 or to a reduction in grade or pay or removal under section #g7;c77#b7 of the ,department of ,housing and ,urban ,development ,act 7#db ,u4,s4,c4 #cece7;c77#b77 4 #c4 ,enforcement of physical condition standards and tenant protection ,section #h7o7 of the ,united ,states ,housing ,act of #aicg 7#db ,u4,s4,c4 #adcg;f7o77 is amended by adding at the end the following3 7#ba7 ,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#bb7 ,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 a ,uniform ,physical ,condition ,standards 7in this paragraph referred to as ,,upcs7 inspection score of not more than #cj2 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 corrected2 or 7iii7 the project receives a ,,upcs inspection score of more than #cj and less than #ei and has received consecutive scores of less than #fj on ,,upcs inspections4 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 paragraph 7#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 7i71 7ii71 or 7iii7 of subparagraph 7,a71 the ,secretary shall notify the entity and provide an opportunity for response not later than #ae days after the date on which the results of the ,,upcs inspection are issued4 7ii7 ,plan and notice of default ,if violations remain at a project after the #ae-;day period described in clause 7i71 the ,secretary shall-- 7,i7 develop a plan to bring the project into compliance not later than #cj days after the date on which the results of the ,,upcs inspection are issued2 and 7,,ii7 provide the owner1 the tenants of the property1 the local government1 any mortgagees1 and any contract administrator of the project with a ,notice of ,default with a 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 a ,,upcs 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 may-- 7,i7 require immediate replacement of project management with a management agent approved by the ,secretary2 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 penalty2 7,,iii7 abate the housing assistance payments contract under this section1 including partial abatement1 as determined by the ,secretary1 until all deficiencies have been corrected2 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 offered2 7,v7 transfer the existing housing assistance payments contract under this section to another project or projects and owner or owners2 7,,vi7 pursue exclusionary sanctions1 including suspensions or debarments from ,federal programs2 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 deficiencies2 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 effectuate2 or 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 tenants 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 property1 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 a ,,upcs 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-- 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#bc7 ,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 #d4 ,reports on ,real ,estate ,assessment ,center inspections 7a7 ,,hud report ,not later than #ij days after the date of enactment of this ,act1 the ,secretary of ,housing and ,urban ,development shall issue a publicly available report on the website of the ,department of ,housing and ,urban ,development 7in this section referred to as the ,department7 regarding ,real ,estate ,assessment ,center 7in this section referred to as ,,reac7 inspections of all properties assisted1 insured1 or both1 under a program of the ,department1 which shall include-- 7#a7 the percentage of all inspected properties that received a ,,reac-inspected score of less than #fe within the #dh-month period preceding the report2 7#b7 the number of properties in which the most recent ,,reac-inspected score represented a decline relative to the previous ,,reac-inspected score2 7#c7 a list of the #aj metropolitan statistical areas with the lowest average ,,reac-inspected scores for all inspected properties2 and 7#d7 a list of the #aj ,states with the lowest average ,,reac-inspected scores for all inspected properties4 7b7 ,,gao report ,the ,comptroller ,general of the ,united ,states shall issue a publicly available report on the website of the ,government ,accountability ,office regarding areas in which ,,reac inspections of all properties assisted1 insured1 or both1 under a program of the ,department should be reformed and improved4