,i #aagth ,,congress #ast ,session ,h4 ,r4 #dbcg ,,in ,,the ,,house ,,of ,,representatives ,june #bi1 #bjba ,ms4 ,pressley 7for herself1 ,ms4 ,waters1 and ,ms4 ,tlaib7 introduced the following bill2 which was referred to the ,committee on ,financial ,services ,a ,,bill ,to protect and empower residents of certain federally assisted rental housing1 and for other purposes4 #a4 ,short title ,this ,act may be cited as the ,tenant ,empowerment ,act of #bjba4 #b4 ,maintenance of housing 7a7 ,project-,based assistance ,section #h7;d7 of the ,united ,states ,housing ,act of #aicg 7#db ,u4,s4,c4 #adcg;f7d77 is amended by adding at the end the following new paragraphs3 7#g7 ,enforcement of housing standards related to physical condition of property ,if the ,secretary determines1 upon any inspection or management review for any multifamily housing project covered by a housing assistance payments contract under this section1 that there are serious violations of housing standards applicable to such project that are not corrected after reasonable notice1 or any other substantial or repeated violations of other program requirements1 including residents' right to organize1 the ,secretary may take one or more of the following actions in addition to other remedies allowed under the contract3 7,a7 ,withhold all or part of the housing assistance payments due under the contract4 7,b7 ,withhold any rent increases otherwise due4 7,c7 ,assume possession and management of the project and take any actions necessary to correct the violations1 including using such withheld payments to effectuate repairs or to reimburse others who make repairs4 7,d7 ,use such withheld payments to pay for utilities and other services that are the responsibility of the owner under the lease or applicable law4 7#h7 ,escrow of tenant rents 7,a7 ,withholding of rent ,if the ,secretary determines1 pursuant to paragraph 7#g71 that there are serious violations of housing standards applicable to any multifamily housing project covered by a housing assistance payments contract under this section1 including a failed physical inspection score1 an unsatisfactory management and occupancy review score1 or a notice of violation of right to organize regulations under subpart ,b of part #bde of title #bd1 ,code of ,federal ,regulations1 any tenants in assisted units in the project may withhold the tenant contribution toward rent and pay such amount1 when due1 into an escrow fund in accordance with procedures established by the ,secretary4 ,if a tenant withholds the tenant contribution toward rent in accordance with this paragraph1 the ,secretary shall withhold all or part of the housing assistance payments due under the contract for the unit until the violations are remedied4 ,if an owner has completed a purchase of multifamily housing found in violation under this paragraph and commenced a repair program to remediate these violations1 tenants exercising this right may negotiate a staged release of funds held in escrow upon reaching measurable benchmarks as established by the ,secretary1 including consultation with the tenants of the property and any legitimate tenants' association1 as defined in subpart ,b of part #bde of title #bd1 ,code of ,federal ,regulations4 7,b7 ,repair and ,deduct ,any tenant of a multifamily housing project covered by a housing assistance payments contract under this section may make payments from the tenant's contribution toward rent1 not to exceed the monthly gross rent for the unit1 to effectuate the cost of repairs or mitigation to bring their unit into compliance with housing quality standards1 and to deduct the documented cost from their rent1 in accordance with procedures established by the ,secretary4 7,c7 ,prohibition ,an owner of a project shall not evict tenants for nonpayment of rent for exercising rights under this paragraph4 7,d7 ,rule of construction ,nothing in this paragraph shall be construed to limit or pre-empt any stronger protections which may exist under ,state or local law4 7#i7 ,protection of tenants ,an owner of a multifamily housing project covered by a housing assistance payments contract under this subsection may not terminate the tenancy of any tenant because of the withholding or abatement of assistance pursuant to this subsection4 ,during the period that assistance is abated pursuant to this subsection1 the tenant may terminate the tenancy by notifying the owner4 7#aj7 ,inspections upon request or petition ,in addition to periodic inspections by the ,secretary1 the ,secretary shall conduct an inspection or management review of any multifamily housing project covered by a housing assistance payments contract under this section when requested by the local government in which the project is located or by a petition signed by not less than #be percent of the tenants of the occupied units in the project4 4 7b7 ,,pha project-,based assistance ,paragraph 7#ac7 of section #h7o7 of the ,united ,states ,housing ,act of #aicg 7#db ,u4,s4,c4 #adcg;f7o77#ac77 is amended by adding at the end the following new subparagraph3 7,n7 ,maintenance of housing ,paragraphs 7#g7 through 7#aj7 of subsection 7d7 of this section shall apply with respect to a multifamily housing project covered by a housing assistance payments contract under this paragraph1 except that in applying such paragraphs-- 7i7 the term public housing agency shall be substituted for the term ,secretary2 and 7ii7 the term contract under this paragraph shall be substituted for the term contract under this section4 4 #c4 ,resident enforcement of project owner agreements with ,,hud and ,,usda 7a7 ,in general ,in each covered agreement1 as such term is defined in subsection 7c71 any resident1 or resident association1 of an affected project shall be permitted to petition the appropriate ,secretary requesting enforcement of alleged serious violations of housing standards that are not corrected after reasonable notice1 or any other substantial or repeated violations of other program requirements1 including the right of residents to organize4 7b7 ,judicial relief ,if the appropriate ,secretary1 or the designee of the appropriate ,secretary1 fails to issue a determination regarding an enforcement request made pursuant to subsection 7a71 or if the determination fails to provide the enforcement action requested within #ij days after receipt of the petition1 the resident1 or resident or tenant association1 may seek appropriate judicial relief in connection with the alleged violation and enforcement of the covered agreement in any forum of competent jurisdiction4 ,in the case of any alleged violation that threatens the health or safety of tenants1 the time period for making such a determination shall not exceed #ae days4 7c7 ,definitions ,for purposes of this section1 the following definitions shall apply3 7#a7 ,appropriate ,secretary ,the term appropriate ,secretary means1 with respect to a covered agreement1 the ,secretary identified in paragraph 7#b74 7#b7 ,covered agreement ,the term covered agreement means any-- 7,a7 a contract between the ,secretary of ,housing and ,urban ,development1 a contract administrator1 or any public housing agency and an owner for project-based housing assistance payments under section #h of the ,united ,states ,housing ,act of #aicg 7#db ,u4,s4,c4 #adcg;f72 7,b7 agreement under the ,multifamily ,assisted ,housing ,reform and ,affordability ,act of #aiig 7#db ,u4,s4,c4 #adcg;f note7 for-- 7i7 ,mark-to-,market ,restructuring ,commitments1 section #h rental assistance for a project involving any action under section #eag7;b7 or section #eai of such ,act2 or 7ii7 ,rehabilitation ,escrow ,deposit ,agreements for ,mark-to-,market2 7,c7 contract for mortgage insurance executed by the ,secretary of ,housing and ,urban ,development and any owner or purchaser of a multifamily housing project2 7,d7 agreement with the ,secretary of ,agriculture in connection with a loan for rural rental housing under section #eae of the ,housing ,act of #aidi 7#db ,u4,s4 ,c4 #adhe72 or 7,e7 other ,regulatory ,agreements1 ,compliance ,agreements1 ,use ,agreements1 or similar contracts between the appropriate ,secretary and the owner that establish housing quality requirements or affordability restrictions4 7d7 ,regulations ,within #ahj days after the date of the enactment of this ,act1 the each appropriate ,secretary shall issue regulations providing procedures for-- 7#a7 receiving tenant petitions to enforce the terms of a covered agreement2 7#b7 evaluating alleged violations of a covered agreement2 and 7#c7 providing notice to residents and resident associations4 7e7 ,protection of other tenant rights ,this section shall not be construed to limit or replace the rights of residents to raise grievances1 appeal decisions1 or make other claims provided under any other provision of law4 #d4 ,resident access to building information 7a7 ,access to information ,upon a written request by a legitimate residents association established with respect to a multifamily housing property to which section #bjb of the ,housing and ,community ,development ,amendments of #aigh 7#ab ,u4,s4,c4 #agaez-#a;b7 applies1 by or through its duly appointed designee or representative1 the ,secretary of ,housing and ,urban ,development shall make available to such association1 designee1 or representative1 for the property represented by the association-- 7#a7 information identifying the legal entities that own or manage the subject property1 including identification of general partners and other principals2 7#b7 an annual operating statement of profit and loss of the ownership and management entities identified in paragraph 7#a71 and their other current or former properties assisted by the ,department1 including the history and current status of mortgage assignments1 defaults1 foreclosures1 or departmental sanctions2 7#c7 any subsidy contracts and regulatory agreements1 use agreements1 or other contracts referred to in section #c7;c77#b7 of this ,act between the ownership entities and the ,department of ,housing and ,urban ,development1 including correspondence between such ownership entities and the ,department for the subject property2 7#d7 any management reviews1 physical inspection reports1 and capital needs assessments of the subject property or entities identified in paragraph 7#a7 that are conducted by the ,department or a contractor of the ,department2 and 7#e7 an annual statement1 prepared by the ,department or a contract administrator for the subject property1 of the balances of1 and expenditures from1 any replacement reserves and other escrow funds for the property4 7b7 ,protection of personal information ,subsection 7a7 shall not be construed to require disclosure of ,social ,security numbers1 personal tax returns1 or any other personal financial information of or concerning individuals who have an interest in the ownership or management entities referred to in subsection 7a71 including salaries or wages of employees of such entities4 ,in complying with the requirements of subsection 7a71 the ,secretary shall not disclose1 and shall redact1 any information that identifies1 or may be used to identify1 a resident of the multifamily housing property4 #e4 ,funding for tenant and other participation and capacity building ,paragraph 7#c7 of section #ead7;f7 of the ,multifamily ,assisted ,housing ,reform and ,affordability ,act of #aiig 7#db ,u4,s4,c4 #adcg;f note7 is amended-- 7#a7 in subparagraph 7,a7-- 7,a7 in the first sentence-- 7i7 by striking not more than and inserting not less than2 7ii7 by striking of low-income housing for which project-based rental assistance is provided at below market rent levels and may not be renewed1 7including transfer of developments to tenant groups1 nonprofit organizations1 and public entities71 for tenant services and inserting the following3 and improvement of low-income housing for which project-based rental assistance1 public housing subsidies1 low-income housing tax credits1 ,federal or ,state subsidized loans1 enhanced vouchers under section #h7t71 or project-based vouchers under section #h7o7 are provided or proposed2 and 7iii7 in the second parenthetical clause1 by inserting before the closing parenthesis the following3 1 and predevelopment assistance to enable such transfers2 and 7,b7 by inserting after the period at the end the following3 ,for outreach and training of tenants and technical assistance1 the ,secretary shall implement a grant program utilizing performance-based outcome measures for eligible costs incurred4 ,recipients providing capacity building or technical assistance services to tenant groups shall be qualified nonprofit ,state-wide1 countywide1 area-wide1 or city-wide organizations with demonstrated experience including at least a two-year recent track record of organizing and providing assistance to tenants1 and independence from the owner1 a prospective purchaser1 or their managing agents4 ,the ,secretary may provide assistance and training to grantees in administrative and fiscal management to ensure compliance with applicable ,federal requirements4 ,the ,secretary shall expedite the provision of funding for the fiscal year in which the date of the enactment of this ,act occurs and by entering into an interagency agreement for not less than #a1jjj1jjj with the ,corporation for ,national and ,community ,service to conduct a tenant outreach and training program to eligible housing under this subsection4 ,the ,secretary shall also make available flexible grants to qualified nonprofit organizations that do not own eligible multifamily properties1 for tenant outreach in underserved areas1 and to experienced national or regional nonprofit organizations to provide specialized training or support to grantees assisted under this section4 ,notwithstanding any other provision of law1 funds authorized under this paragraph for any fiscal year shall be available for obligation in subsequent fiscal years4 ,the ,secretary shall require each recipient of amounts made available pursuant to this subparagraph to submit to the ,secretary reports1 on a quarterly basis1 detailing the use of such funds and including such information as the ,secretary shall require4 #f4 ,tenant participation in physical inspection and management review processes ,in implementing any inspection requirements for ensuring decent1 safe1 and sanitary conditions and any ,management and ,occupancy ,reviews in multifamily housing receiving project-based assistance under a program administered by the ,secretary of ,housing and ,urban ,development1 the ,secretary shall-- 7#a7 encourage tenant participation-- 7,a7 by requiring that the owner shall post notice of any ,department of ,housing and ,urban ,development 7in this section referred to as ,,hud7 inspection1 including information about the inspection process1 contact information1 and appeals to ,,hud1 both before and after the inspection1 in common areas of the property2 7,b7 by requiring that1 after any inspection1 the owner shall post the property score in common areas of the property and ensure that the full ,,hud inspection report 7but not including any personally identifiable information for owners or residents7 and related correspondence is made available for inspection by tenants and their representatives at the property where they reside2 7,c7 by allowing any legitimate tenant organization1 prior to an inspection1 to submit a report regarding the property to the inspector and to ,,hud2 7,d7 by notifying and allowing any legitimate tenant organization1 upon request1 to meet with and to designate a representative to accompany the inspector during the on-site inspection of common areas1 including grounds1 hallways1 lobbies1 community1 mail and laundry rooms1 and other common spaces accessible to residents2 7,e7 by including in any ,,hud physical inspection up to five additional units suggested by tenants or any legitimate tenant organization2 7,f7 by providing notice1 comment1 and appeal rights for tenants and any legitimate tenant organization parallel to the notice1 comment1 and appeal rights provided to owners2 and 7,g7 by conducting a full or partial ,management and ,occupancy ,review upon the written request by at least #be percent of residents or by any legitimate tenant association at the property1 for the issues identified by residents2 7#b7 require inspectors to notate in their report potential environmental hazards and unseen health and safety conditions described by residents1 management staff1 or local agencies1 or as observed by the inspector2 7#c7 require ,,hud to provide for independent testing of potential environmental hazards identified by ,,hud inspectors2 7#d7 require the ,secretary to develop a remedial plan if environmental hazards or health and safety conditions are documented and to monitor the implementation of the remedial plan2 7#e7 require ,,hud contract inspectors to review records and consult with local code enforcement agencies regarding physical conditions of a property prior to inspections1 if the locality's databases are accessible2 7#f7 review work order records in the management office of the property to assess for response time and tenant satisfaction2 and 7#g7 require the ,secretary to inspect for compliance with any findings of exigent health and safety violations resulting from ,,hud inspections4 #g4 ,duty to maintain housing assistance payments during foreclosure 7a7 ,in general ,notwithstanding any other provision of law1 in managing and disposing of any multifamily property that is owned or has a mortgage held by the ,secretary of ,housing and ,urban ,development1 and during the process of foreclosure on any property with a contract for rental assistance payments under section #h of the ,united ,states ,housing ,act of #aicg or any other program administered by the ,secretary1 the ,secretary shall maintain any rental assistance payments under section #h of the ,united ,states ,housing ,act of #aicg1 and any other programs1 that are attached to any dwelling units in the property4 7b7 ,other rental assistance ,to the extent the ,secretary determines1 in consultation with the tenants and the local government1 that such a multifamily property owned or having a mortgage held by the ,secretary is not feasible for continued rental assistance payments under such section #h or other programs1 based on consideration of 7#a7 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 note71 and 7#b7 environmental conditions that cannot be remedied in a cost-effective fashion1 the ,secretary may1 in consultation with the tenants of that property1 contract for project-based rental assistance payments with an owner or owners of other existing housing properties1 or provide other rental assistance4 7c7 ,project-,based contracts ,the ,secretary shall take appropriate steps to ensure that project-based contracts remain in effect prior to foreclosure1 subject to the exercise of contractual abatement remedies to assist relocation of tenants for imminent major threats to health and safety after written notice to and informed consent of the affected tenants and use of other available remedies1 such as partial abatements or receivership4 7d7 ,rent levels ,after disposition of any multifamily property described under this section1 the contract and allowable rent levels on such properties shall be subject to the requirements under section #ebd of the ,multifamily ,assisted ,housing ,reform and ,affordability ,act of #aiig4 #h4 ,clarification of tenant participation in multifamily projects ,the last sentence of section #bjb7;a7 of the ,housing and ,community ,development ,amendments of #aigh 7#ab ,u4,s4,c4 #agaez-#a;b7a77 is amended by inserting after 7#db ,u4,s4,c4 #adcg;f71 the following3 including a project assisted under section #h7o77#ac7 7#db ,u4,s4,c4 #adcg;f7o77#ac7714