,,ii  #aaf? ,,congress  #a/ ,session    
,s4 #aahd  ,,9 ,,! ,,s5ate ,,( ,,!      
,,unit$ ,,/ates  ,april #aa1 #bjai,mr4  
,rubio introduc$ ! foll[+ bill2 :i* 0   
read twice & ref]r$ to ! ,committee on  
,bank+1 ,h\s+1 & ,urban ,affairs  ,a    
,,bill  ,to re=m ! inspection process ( 
h\s+ assi/$ by ! ,dep>tm5t ( ,h\s+ &    
,urban ,developm5t1 & = o!r purposes4   
#a4 ,%ort title ,?is ,act may be cit$ z 
! ,,hud ,inspection ,process & ,en=cem5t
 ,re=m ,act ( #bjai4  #b4 ,r$uction 9   
grade or pay or removal = misconduct or 
p]=mance ( employees ( ! ,dep>tm5t (    
,h\s+ & ,urban ,developm5t  7a7 ,9 g5]al
 ,section #g7;c7 ( ! ,dep>tm5t ( ,h\s+ &
 ,urban ,developm5t ,act 7#db ,u4,s4,c4 
#cece7;c77 is am5d$--  7#a7 by /rik+ ,! 
,secret>y is au?oriz$ & ins]t+ ! foll[+3
 8,employm5t1 comp5sation1 au?ority1 &  
duties ( p]sonnel4--  7#a7 ,9 g5]al ,!  
,secret>y is au?oriz$  2 &  7#b7 by add+
 at ! end ! foll[+3  7#b7 ,r$uction 9   
grade or pay or removal = misconduct or 
p]=mance ( employees  7,a7 ,def9itions  

,= purposes ( ?is p>agraph--  7i7 ! t]m 
cov]$ employee-- 7,i7 means an          
individual hold+ a position 9 ! civil   
s]vice 9 ! ,dep>tm5t2 &  7,,ii7 does n  
include any individual--  7aa7 hold+ 9 a
 position describ$ "u sections #ecab    
?r\gh #ecaf ( title #e1 ,unit$ ,/ates   
,code 7relat+ to ! ,executive ,s*$ule72 
7bb7 hold+ a position z a limit$ t]m    
appo9tee1 limit$ em]g5cy appo9tee1 or   
nonc>e] appo9tee 9 ! ,s5ior ,executive  
,s]vice1 z def9$ "u p>agraphs 7#e71     
7#f71 & 7#g71 respectively1 ( section   
#cacb7;a7 ( title #e1 ,unit$ ,/ates     
,code2 or  7cc7 hold+ a position ( a    
confid5tial or policy-det]m9+ "* "u     
s*$ule ,c ( subp>t ,c ( "p #bac ( title 
#e1 ,code ( ,f$]al ,regulations2  7ii7 !
 t]m grade means a level (              
classification "u a position            
classification sy/em2  7iii7 ! t]m      
misconduct includes neglect ( duty1     
malfeasance1 or failure to accept a     
direct$ reassignm5t or to accompany a   
position 9 a transf] ( function2 &  7iv7

 ! t]m pay means ! rate ( basic pay fix$
 by law or adm9i/rative action = !      
position held by a cov]$ employee4  7,b7
 ,actions cov]$ ,?is p>agraph-- 7i7     
applies to a r$uction 9 grade or pay or 
removal2 &  7ii7 does n apply to-- 7,i7 
a r$uction 9 grade or pay or removal "u 
section #geab ( title #e1 ,unit$ ,/ates 
,code2  7,,ii7 a r$uction 9 grade or pay
 or removal "u section #geba ( title #e1
 ,unit$ ,/ates ,code2  7,,iii7 a removal
 "u section #gecb ( title #e1 ,unit$    
,/ates ,code2 or  7,,iv7 a removal "u   
section #ceib1 #ceie1 or #gedc ( title  
#e1 ,unit$ ,/ates ,code4  7,c7 ,cause & 
proc$ure  7i7 ,9 g5]al ,not)/&+ any o!r 
provision ( law1 "u regulations         
prescrib$ by ! ,(fice ( ,p]sonnel       
,managem5t1 ! ,secret>y may1 if !       
,secret>y det]m9es t ! misconduct or    
p]=mance ( a cov]$ employee w>rants su* 
action--  7,i7 remove ! cov]$ employee f
 ! civil s]vice2  7,,ii7 r$uce ! grade (
 ! cov]$ employee2 or  7,,iii7 r$uce !  
pay ( ! cov]$ employee4  7ii7 ,r$uction 

9 grade ,a cov]$ employee subject to a  
r$uction 9 grade "u clause 7i77,,ii7    
%all1 beg9n+ on ! date t ! r$uction     
takes effect1 receive ! annual rate (   
pay applicable to ! r$uc$ grade4  7iii7 
,appeal proc$ures  7,i7 ,9 g5]al        
,subject to subclause 7,,ii7 & clause   
7iv71 any r$uction 9 grade or pay or    
removal "u ?is p>agraph may be appeal$  
to ! ,m]it ,sy/ems ,protection ,bo>d "u 
section #ggja ( title #e1 ,unit$ ,/ates 
,code4  7,,ii7 ,"t = appeal ,an appeal  
"u subclause 7,i7 may only be made if   
su* appeal is made n lat] ?an #g days   
aft] ! date ( su* r$uction 9 grade or   
pay or removal4  7iv7 ,review on appeal 
7,i7 ,9 g5]al ,^u receipt ( an appeal "u
 clause 7iii71 ! ,m]it ,sy/ems          
,protection ,bo>d %all ref] ! appeal to 
an adm9i/rative law judge pursuant to   
section #ggja7;b77#a7 ( title #e1 ,unit$
 ,/ates ,code4 ,! adm9i/rative law judge
 %all exp$ite any su* appeal "u su*     
section &1 9 any su* case1 %all issue a 
decision n lat] ?an #de days aft] ! date

 t ! ,bo>d receives ! appeal4  7,,ii7   
,in=mation & assi/ance ,to ! maximum    
ext5t practicable1 ! ,secret>y %all     
provide to ! ,m]it ,sy/ems ,protection  
,bo>d1 & to any adm9i/rative law judge  
to :om an appeal "u ?is p>agraph is     
ref]r$1 su* in=mation & assi/ance z may 
be necess>y to ensure an appeal "u ?is  
p>agraph is exp$it$4  7,,iii7 ,f9ality  
,n)/&+ any o!r provision ( law1 includ+ 
section #ggjc ( title #e1 ,unit$ ,/ates 
,code1 ! decision ( an adm9i/rative law 
judge "u subclause 7,i7 %all be f9al &  
%all n be subject to any fur!r appeal4  
7,,iv7 ,delay$ decision ,9 any case 9   
:i* ! adm9i/rative law judge _c issue a 
decision 9 accordance ) ! #de-;day      
requirem5t "u subclause 7,i71 ! r$uction
 9 grade or pay or removal is f9al4 ,9  
su* a case1 ! ,m]it ,sy/ems ,protection 
,bo>d %all1 )9 #ad days aft] ! date t   
su* r$uction 9 grade or pay or removal  
is f9al1 submit to ,congress a report t 
expla9s ! reasons :y a decision 0 n     
issu$ 9 accordance ) su* requirem5t4    

7,v7 ,no /ays ,! ,m]it ,sy/ems          
,protection ,bo>d or adm9i/rative law   
judge may n /ay any r$uction 9 grade or 
pay or removal action "u ?is p>agraph4  
7,,vi7 ,effect ( appeal ( removal ,dur+ 
! p]iod beg9n+ on ! date on :i* a cov]$ 
employee appeals a removal f ! civil    
s]vice "u ?is p>agraph & end+ on ! date 
t ! adm9i/rative law judge issues a f9al
 decision on su* appeal1 ! cov]$        
employee may n receive any pay1 aw>ds1  
bonuses1 inc5tives1 all[ances1          
diff]5tials1 /ud5t loan repaym5ts1      
special paym5ts1 or b5efits4  7v7       
,:i/lebl[] protection ,9 ! case ( a     
cov]$ employee seek+ corrective action  
7or on behalf ( :om corrective action is
 s\ght7 f ! ,(fice ( ,special ,c\nsel   
bas$ on an alleg$ prohibit$ p]sonnel    
practice describ$ 9 section #bcjb7;b7 ( 
title #e1 ,unit$ ,/ates ,code1 !        
,secret>y may n r$uce ! grade or pay or 
remove ! cov]$ employee "u ?is p>agraph 
)\t ! approval ( ! ,special ,c\nsel "u  
section #abad7;f7 ( title #e1 ,unit$    

,/ates ,code4  4  7b7 ,application ,!   
au?ority "u p>agraph 7#b7 ( section     
#g7;c7 ( ! ,dep>tm5t ( ,h\s+ & ,urban   
,developm5t ,act1 z add$ by subsection  
7a71 %all apply to any cov]$ employee 7z
 def9$ 9 su* p>agraph7 appo9t$ be=e1 on1
 or aft] ! date ( enactm5t ( ?is ,act4  
7c7 ,con=m+ am5dm5ts ,title #e1 ,unit$  
,/ates ,code1 is am5d$-- 7#a7 9 section 
#dcjc7;f7--  7,a7 9 p>agraph 7#c71 by   
/rik+ or at ! end2  7,b7 9 p>agraph     
7#d71 by /rik+ ! p]iod at ! end & ins]t+
 1 or2 &  7,c7 by add+ at ! end !       
foll[+3  7#e7 ! r$uction 9 grade or     
removal ( an employee "u section        
#g7;c77#b7 ( ! ,dep>tm5t ( ,h\s+ &      
,urban ,developm5t ,act 7#db ,u4,s4,c4  
#cece7;c77#b774  2  7#b7 9 section      
#geab-- 7,a7 9 subp>agraph 7,e71 by     
/rik+ 2 or & ins]t+ a comma2  7,b7 9    
subp>agraph 7,f71 by /rik+ ! p]iod at ! 
end & ins]t+ 1 or2 &  7,c7 by add+ at ! 
end ! foll[+3  7,g7 a r$uction 9 grade  
or pay or removal "u section #g7;c77#b7 
( ! ,dep>tm5t ( ,h\s+ & ,urban          

,developm5t ,act 7#db ,u4,s4,c4         
#cece7;c77#b774  2  7#c7 9 section      
#geba7;b71 9 ! matt] foll[+ p>agraph    
7#e7-- 7,a7 9 subp>agraph 7,b71 by /rik+
 or at ! end2  7,b7 9 subp>agraph 7,c71 
by /rik+ ! p]iod at ! end & ins]t+ 2 or2
 &  7,c7 by add+ at ! end ! foll[+3     
7,d7 a r$uction 9 grade or pay or       
removal "u section #g7;c77#b7 ( !       
,dep>tm5t ( ,h\s+ & ,urban ,developm5t  
,act 7#db ,u4,s4,c4 #cece7;c77#b774  2 &
  7#d7 9 section #gedb1 by /rik+ or to a
 removal "u section #ceib or #ceie ( ?is
 title & ins]t+ to a removal "u section 
#ceib or #ceie ( ?is title1 to an action
 "u section #gac ( title #ch1 or to a   
r$uction 9 grade or pay or removal "u   
section #g7;c77#b7 ( ! ,dep>tm5t ( ,h\s+
 & ,urban ,developm5t ,act 7#db         
,u4,s4,c4 #cece7;c77#b77 4  #c4         
,en=cem5t ( physical condition /&>ds &  
t5ant protection ,section #h7o7 ( !     
,unit$ ,/ates ,h\s+ ,act ( #aicg 7#db   
,u4,s4,c4 #adcg;f7o77 is am5d$ by add+  
at ! end ! foll[+3  7#ba7 ,ma9t5ance (  

prop]ty ,any entity receiv+ h\s+        
assi/ance paym5ts ) respect to dwell+   
units cov]$ by a h\s+ assi/ance paym5ts 
contract %all--  7,a7 ma9ta9 dec5t1     
safe1 & sanit>y conditions at ^? dwell+ 
units1 z det]m9$ by ! ,secret>y2 &  7,b7
 comply ) any /&>ds "u applicable ,/ate 
or local laws1 rules1 ord9ances1 or     
regulations relat+ to ! physical        
condition ( ^? dwell+ units4  7#bb7     
,en=cem5t ( physical condition /&>ds    
7,a7 ,9 g5]al ,! ,secret>y %all take    
action "u subp>agraph 7,c7 aga9/ an     
entity ) a h\s+ assi/ance paym5ts       
contract = project-bas$ assi/ance )     
respect to a multifamily h\s+ project   
if--  7i7 ! project receives a ,uni=m   
,physical ,condition ,/&>ds 79 ?is      
p>agraph ref]r$ to z ,,upcs7 inspection 
score ( n m ?an #cj2  7ii7 ! entity     
fails to c]tify 9 writ+ to ! ,secret>y  
)9 #c days ( receiv+ ! score "u clause  
7i7 t all exig5t heal? & safety         
defici5cies id5tifi$ by ! inspector at !
 project h be5 correct$2 or  7iii7 !    

project receives a ,,upcs inspection    
score ( m ?an #cj & less ?an #ei & has  
receiv$ consecutive scores ( less ?an   
#fj on ,,upcs inspections4  7,b7        
,applicability ,subp>agraph 7,a7 %all-- 
7i7 apply ) respect to insur$ & non9sur$
 projects ) dwell+ units receiv+        
assi/ance "u ?is section o!r ?an "u     
p>agraph 7#ac72 &  7ii7 n apply to      
dwell+ units receiv+ assi/ance ) capital
 or op]at+ funds "u section #i4  7,c7   
,notification & en=cem5t  7i7 ,9 g5]al  
,if an entity violates clause 7i71 7ii71
 or 7iii7 ( subp>agraph 7,a71 !         
,secret>y %all notify ! entity & provide
 an opportunity = response n lat] ?an   
#ae days aft] ! date on :i* ! results ( 
! ,,upcs inspection are issu$4  7ii7    
,plan & notice ( default ,if violations 
rema9 at a project aft] ! #ae-;day p]iod
 describ$ 9 clause 7i71 ! ,secret>y     
%all--  7,i7 develop a plan to br+ !    
project into compliance n lat] ?an #cj  
days aft] ! date on :i* ! results ( !   
,,upcs inspection are issu$2 &  7,,ii7  

provide ! own]1 ! t5ants ( ! prop]ty1 ! 
local gov]nm5t1 any mortgagees1 & any   
contract adm9i/rator ( ! project ) a    
,notice ( ,default ) a specifi$         
timetable1 det]m9$ by ! ,secret>y1 =    
correct+ all defici5cies4  7iii7        
,)drawal ( notice ( default ,if an      
appeal submitt$ by ! entity results 9 a 
,,upcs inspection score ( n less ?an    
#fj1 ! ,secret>y may )draw a ,notice (  
,default issu$ "u clause 7ii77,,ii74    
7iv7 ,p5alties ,if1 at ! end ( !        
timetable describ$ 9 clause 7ii77,,ii71 
! entity fails to fully correct all     
defici5cies 9 ! project1 ! ,secret>y    
may--  7,i7 require imm$iate replacem5t 
( project managem5t ) a managem5t ag5t  
approv$ by ! ,secret>y2  7,,ii7 impose  
civil money p5alties1 :i* %all be us$   
solely = ! purpose ( support+ safe &    
sanit>y conditions at ! prop]ty1 z      
designat$ by ! ,secret>y1 ) priority    
giv5 to ! t5ants ( ! prop]ty affect$ by 
! p5alty2  7,,iii7 abate ! h\s+         
assi/ance paym5ts contract "u ?is       

section1 includ+ p>tial abatem5t1 z     
det]m9$ by ! ,secret>y1 until all       
defici5cies h be5 correct$2  7,,iv7     
pursue transf] ( ! project to an own]1  
approv$ by ! ,secret>y "u e/abli%$      
proc$ures1 :i* w be obligat$ to promptly
 make all requir$ repairs & to accept   
r5ewal ( ! h\s+ assi/ance paym5ts       
contract z long z su* r5ewal is (f]$2   
7,v7 transf] ! exi/+ h\s+ assi/ance     
paym5ts contract "u ?is section to ano!r
 project or projects & own] or own]s2   
7,,vi7 pursue exclusion>y sanctions1    
includ+ susp5sions or deb>m5ts f ,f$]al 
programs2  7,,vii7 seek judicial        
appo9tm5t ( a receiv] to manage !       
prop]ty & cure all project defici5cies  
or seek a judicial ord] ( specific      
p]=mance requir+ ! own] to cure all     
project defici5cies2  7,,viii7 "w ) !   
own]1 l5d]1 or o!r relat$ p>ty to       
/abilize ! prop]ty 9 an attempt to      
pres]ve ! prop]ty ?r\gh compliance1     
transf] ( own]%ip1 or an infusion (     
capital provid$ by a ?ird p>ty t        

requires "t to effectuate2 or  7,,ix7   
take any o!r regulatory or contractual  
rem$ies available z deem$ necess>y &    
appropriate by ! ,secret>y4  7,d7       
,contracts  7i7 ,9 g5]al ,! ,secret>y   
%all take appropriate /eps to ensure t  
project-bas$ contracts rema9 9 effect1  
subject to ! ex]cise ( contractual      
abatem5t rem$ies to assi/ relocation (  
t5ants = major ?reats to heal? & safety 
aft] writt5 notice to & in=m$ cons5t ( !
 affect$ t5ants & use ( o!r rem$ies "u  
?is p>agraph4  7ii7 ,o!r assi/ance ,to !
 ext5t ! ,secret>y det]m9es1 9          
consultation ) ! t5ants & ! local       
gov]nm5t1 t a prop]ty is n feasible =   
cont9u$ r5tal assi/ance paym5ts "u ?is  
section or o!r h\s+ programs1 bas$ on   
consid]ation ( ! co/s ( rehabilitat+ &  
op]at+ ! prop]ty & all available ,f$]al1
 ,/ate1 & local res\rces1 includ+ r5t   
adju/m5ts "u section #ebd ( !           
,multifamily ,assi/$ ,h\s+ ,re=m &      
,af=dability ,act ( #aiig 7#db ,u4,s4,c4
 #adcg;f note7 & environm5tal conditions

 t _c be rem$i$ 9 a co/-effective       
fa%ion1 ! ,secret>y may1 9 consultation 
) ! t5ants ( ! prop]ty1 contract =      
project-bas$ r5tal assi/ance paym5ts )  
an own] or own]s ( o!r exi/+ h\s+       
prop]ties1 or provide o!r r5tal         
assi/ance4  7,e7 ,report  7i7 ,9 g5]al  
,! ,secret>y %all1 on a qu>t]ly basis1  
issue a publicly available report on all
 prop]ties cov]$ by ?is p>agraph t--    
7,i7 are assess$ ?r\gh ! ,real ,e/ate   
,assessm5t ,c5t]2 &  7,,ii7 7aa7 h a    
,,upcs inspection score ( less ?an #fj2 
or  7bb7 receiv$ an unsatisfactory      
managem5t & occupancy review dur+ !     
#cf-mon? p]iod prec$+ ! report4  7ii7   
,cont5ts ,ea* report issu$ "u clause 7i7
 %all include-- 7,i7 ! en=cem5t actions 
be+ tak5 to address ! physical          
conditions ( ! prop]ties cov]$ 9 !      
report1 includ+ imposition ( civil money
 p5alties & t]m9ation ( subsidies1 &    
id5tify prop]ties t h ^? conditions     
multiple times2  7,,ii7 actions t !     
,dep>tm5t ( ,h\s+ & ,urban ,developm5t  

is tak+ to protect t5ants ( ^?          
prop]ties2 &  7,,iii7 any adm9i/rative  
or legislative recomm5dations to fur!r  
improve ! liv+ conditions at ea* prop]ty
 cov]$ "u a h\s+ assi/ance paym5ts      
contract4  7#bc7 ,t5ant protection  7,a7
 ,9 g5]al ,! ,secret>y may provide      
t5ant-bas$ assi/ance = dwell+ units     
cov]$ "u a project-bas$ assi/ance       
subsidy contract if--  7i7 ! own] ( !   
dwell+ units has receiv$ a ,notice (    
,default2 &  7ii7 ! dwell+ units pose an
 imm95t heal? & safety risk to ! t5ants 
( ^? dwell+ units4  7,b7 ,reimbursem5ts 
,to ! ext5t t ! ,secret>y det]m9es t    
dwell+ units describ$ 9 subp>agraph 7,a7
 are n feasible = cont9u$ r5tal         
assi/ance paym5ts or transf] ( !        
project-bas$ assi/ance subsidy contract 
associat$ ) ^? dwell+ units to ano!r    
project or projects & own] or own]s1 any
 rema9+ am\nts associat$ ) ^? dwell+    
units %all be recaptur$ & us$ to        
reimburse am\nts us$ = t5ant-bas$       
assi/ance "u subp>agraph 7,a74  4  #d4  

,reports on ,real ,e/ate ,assessm5t     
,c5t] inspections  7a7 ,,hud report ,n  
lat] ?an #ij days aft] ! date ( enactm5t
 ( ?is ,act1 ! ,secret>y ( ,h\s+ &      
,urban ,developm5t %all issue a publicly
 available report on ! website ( !      
,dep>tm5t ( ,h\s+ & ,urban ,developm5t  
79 ?is section ref]r$ to z ! ,dep>tm5t7 
reg>d+ ,real ,e/ate ,assessm5t ,c5t] 79 
?is section ref]r$ to z ,,reac7         
inspections ( all prop]ties assi/$1     
insur$1 or bo?1 "u a program ( !        
,dep>tm5t1 :i* %all include--  7#a7 !   
p]c5tage ( all inspect$ prop]ties t     
receiv$ a ,,reac-inspect$ score ( less  
?an #fe )9 ! #dh-mon? p]iod prec$+ !    
report2  7#b7 ! numb] ( prop]ties 9 :i* 
! mo/ rec5t ,,reac-inspect$ score       
repres5t$ a decl9e relative to ! previ\s
 ,,reac-inspect$ score2  7#c7 a li/ ( ! 
#aj metropolitan /ati/ical areas ) !    
l[e/ av]age ,,reac-inspect$ scores = all
 inspect$ prop]ties2 &  7#d7 a li/ ( !  
#aj ,/ates ) ! l[e/ av]age              
,,reac-inspect$ scores = all inspect$   

prop]ties4  7b7 ,,gao report ,!         
,comptroll] ,g5]al ( ! ,unit$ ,/ates    
%all issue a publicly available report  
on ! website ( ! ,gov]nm5t              
,acc\ntability ,(fice reg>d+ areas 9 :i*
 ,,reac inspections ( all prop]ties     
assi/$1 insur$1 or bo?1 "u a program ( !
 ,dep>tm5t %\ld be re=m$ & improv$4