ceed $480 for each child for whom such payment is made; except that this clause shall apply only to the extent approved in appropriations Acts.

(vi) SPOUSAL SUPPORT EXPENSES.-Any payment made by a member of the family for the support and maintenance of any spouse or former spouse who does not reside in the household, except that the amount excluded under this clause shall not exceed the lesser of (I) the amount that such family member has a legal obligation to pay, or (II) $550 for each individual for whom such payment is made; except that this clause shall apply only to the extent approved in appropriations Acts.

(vii) EARNED INCOME OF MINORS.-The amount of any earned income of a member of the family who is not— (I) 18 years of age or older; and

(II) the head of the household (or the spouse of the

head of the household).

(B) PERMISSIVE EXCLUSIONS FOR PUBLIC HOUSING.-In determining adjusted income, a public housing agency may, in the discretion of the agency, establish exclusions from the annual income of a family residing in a public housing dwelling unit. Such exclusions may include the following amounts:

(i) EXCESSIVE TRAVEL EXPENSES.-Excessive travel expenses in an amount not to exceed $25 per family per week, for employment- or education-related travel.

(ii) EARNED INCOME.-An amount of any earned income of the family, established at the discretion of the public housing agency, which may be based on

(I) all earned income of the family,

(II) the amount earned by particular members of the family;

(III) the amount earned by families having certain characteristics; or

(IV) the amount earned by families or members during certain periods or from certain sources.

(iii) OTHERS.-Such other amounts for other purposes,

as the public housing agency may establish. (6)1 PUBLIC HOUSING AGENCY.—

(A) IN GENERAL.-Except as provided in subparagraph (B), the term "public housing agency" means any State, county, municipality, or other governmental entity or public body (or agency or instrumentality thereof) which is authorized to engage in or assist in the development or operation of public housing.

(B) SECTION 8 PROGRAM. For purposes of the program for tenant-based assistance under section 8, such term includes(i) a consortia of public housing agencies that the Secretary determines has the capacity and capability to ad

1This paragraph was added by section 546 of the Quality Housing and Work Responsibility Act of 1998, title V of Public Law 105-276, approved October 21, 1998. Pursuant to section 503 of such Act (set forth in the footnote on page 114 of this compilation), the amendment was made on the date of enactment (and, therefore, the paragraph section is shown), but applies beginning upon October 1, 1999.

minister a program for assistance under such section in an efficient manner;

(ii) any other public or private nonprofit entity that, upon the effective date under section 503(a) of the Quality Housing and Work Responsibility Act of 1998, was administering any program for tenant-based assistance under section 8 of this Act (as in effect before the effective date of such Act), pursuant to a contract with the Secretary or a public housing agency; and

(iii) with respect to any area in which no public housing agency has been organized or where the Secretary determines that a public housing agency is unwilling or unable to implement a program for tenant-based assistance section 8, or is not performing effectively

(I) the Secretary or another public or private nonprofit entity that by contract agrees to receive assistance amounts under section 8 and enter into housing assistance payments contracts with owners and perform the other functions of public housing agency under section 8; or

(II) notwithstanding any provision of State or local law, a public housing agency for another area that contracts with the Secretary to administer a program for housing assistance under section 8, without regard to any otherwise applicable limitations on its area of operation.

(7) The term "State" includes the several States, the District of Columbia, the Commonwealth of Puerto Rico, the territories and possessions of the United States, and the Trust Territory of the Pacific Islands.

(8) The term "Secretary" means the Secretary of Housing and Urban Development.

(9)1 DRUG-RELATED CRIMINAL ACTIVITY.-The term "drug-related criminal activity" means the illegal manufacture, sale, distribution, use, or possession with intent to manufacture, sell, distribute, or use, of a controlled substance (as such term is defined in section 102 of the Controlled Substances Act).

(10)1 MIXED-FINANCE PROJECT.-The term "mixed-finance project" means a public housing project that meets the requirements of section 35.

(11)1 PUBLIC HOUSING AGENCY PLAN.-The term "public housing agency plan" means the plan of a public housing agency prepared in accordance with section 5A.

(12) CAPITAL FUND.-The term "Capital Fund" means the fund established under section 9(d).

(13)1 OPERATING FUND.-The term "Operating Fund" mean the fund established under section 9(e).

(c) When used in reference to public housing:

1Section 506(4) of the Quality Housing and Work Responsibility Act of 1998, title V of Public Law 105-276, approved October 21, 1998, amended this subsection by adding paragraphs (9) through (13). Pursuant to section 503 of such Act (set forth in the footnote on page 114 of this compilation), the amendment was made on the date of enactment (and, therefore, the new paragraphs are shown), but applies beginning upon October 1, 1999.

the

and maintenance of ant rganizations which parcipate ranagement of cncome cousing rects the ring of z arta a manage and perte sich prets and the mixenon of shear vernca in je anagement and person wunseling on poweroid management budgeting, Torey manage

ant reada and providing a wholesome Tng environment, and resce section of much services. The maxmum extent available and voorsorate extating public and private agences in the com3. The term 'amated et means the amount prodently re

* Can uang means aw-rent housing with which there is connected

a takrat koning "se by where winesome and economicsi ness can be served to occupants

Tumeshamsa seared by a subur song agency in the operation of a central dining facil • MASARLAR, WI gang her than the cost of providing food and service) erst asset vi speration of the project.

5. The serma gring some and independent iving facility' have the meanings given meh seems in series Bikx, of the Cranston-Gonsavez National Affordable Housing Act." Verna a mandary matructions did not specify which occurrence of "project" the new youngtrika watu wa guest wher, the amendment could not be executed. The new paragraphs ush yuhang akended to be inserted after this paragraph.

(d)1 DISALLOWANCE OF EARNED INCOME FROM RENT DETERMINATIONS.—

(1) IN GENERAL.-Notwithstanding any other provision of law, the rent payable under subsection (a) by a family described in paragraph (3) of this subsection may not be increased as a result of the increased income due to such employment during the 12-month period beginning on the date on which the employment is commenced.

(2) PHASE-IN OF RENT INCREASES.-Upon the expiration of the 12-month period referred to in paragraph (1), the rent payable by a family described in paragraph (3) may be increased due to the continued employment of the family member described in paragraph (3)(B), except that during the 12-month period beginning upon such expiration the amount of the increase may not be greater than 50 percent of the amount of the total rent increase that would be applicable but for this paragraph.

(3) ELIGIBLE FAMILIES.-A family described in this paragraph is a family

(A) that—

(i) occupies a dwelling unit in a public housing project; or

(ii) receives assistance under section 8; and (B)(i) whose income increases as a result of employment of a member of the family who was previously unemployed for 1 or more years;

(ii) whose earned income increases during the participation of a family member in any family self-sufficiency or other job training program; or

(iii) who is or was, within 6 months, assisted under any State program for temporary assistance for needy fam

This subsection was added by section 508(b)(1) of the Quality Housing and Work Responsibility Act of 1998, title V of Public Law 105-276, approved October 21, 1998. Pursuant to section 503 of such Act (set forth in the footnote on page 114 of this compilation), the amendment was made on the date of enactment, but applies beginning upon October 1, 1999.

Section 508(b)(1) of the 1998 Act also struck the undesignated paragraph that followed section 3(c)3) of the United States Housing Act of 1937. Section 508(b)(2) of such Act provides, in part, as follows: "Notwithstanding the amendment made by paragraph (1), the provisions of the undesignated paragraph at the end of section 3(c)(3) of the United States Housing Act of 1937, as such section was in effect immediately before the enactment of this Act, shall continue to apply until the effective date under section 503 of this Act.".

The undesignated paragraph at the end of section 3(c)(3) of the United States Housing Act of 1937, as in effect immediately before the enactment of the Quality Housing and Work Responsibility Act of 1998 provided as follows:

"The earnings of and benefits to any public housing resident resulting from participation in a program providing employment training and supportive services in accordance with the Family Support Act of 1988, section 22 of this Act, or any comparable Federal, State, or local law shall not be considered as income for the purposes of determining a limitation on the amount of rent paid by the resident during

(1) the period that the resident participates in such program; and

(2) the period that

(A) begins with the commencement of employment of the resident in the first job acquired by the person after completion of such program that is not funded by assistance under this Act; and

"(B) ends on the earlier of

"(i) the date the resident ceases to continue employment without good cause as the Secretary shall determine; or

"(ii) the expiration of the 18-month period beginning on the date referred to in subparagraph (A).”.

Section 503 of the Quality Housing and Work Responsibility Act of 1998 is set forth in the footnote on page 114 of this compilation.

Sec. 3

UNITED STATES HOUSING ACT OF 1937

ilies funded under part A of title IV of the Social Security Act and whose earned income increases.

(4) APPLICABILITY.-This subsection and subsection (e) shall apply beginning upon October 1, 1999, except that this subsection and subsection (e) shall apply with respect to any family described in paragraph 3(A)(ii) only to the extent provided in advance in appropriations Acts.

(e) 1 INDIVIDUAL SAVINGS ACCOUNTS.

(1) IN GENERAL.-In lieu of a disallowance of earned income under subsection (d), upon the request of a family that qualifies under subsection (d), a public housing agency may es tablish an individual savings account in accordance with this subsection for that family.

(2) DEPOSITS TO ACCOUNT.-The public housing agency shall deposit in any savings account established under this subsection an amount equal to the total amount that otherwise would be applied to the family's rent payment under subsection (a) as a result of employment.

(3) WITHDRAWAL FROM ACCOUNT.-Amounts deposited in a savings account established under this subsection may only be withdrawn by the family for the purpose of—

(A) purchasing a home;

(B) paying education costs of family members;

(C) moving out of public or assisted housing; or

(D) paying any other expense authorized by the public housing agency for the purpose of promoting the economic self-sufficiency of residents of public and assisted housing. (f)2 AVAILABILITY OF INCOME MATCHING INFORMATION.

(1) DISCLOSURE TO PHA.-A public housing agency shall require any family described in paragraph (2) who receives information regarding income, earnings, wages, or unemployment compensation from the Department of Housing and Urban Development pursuant to income verification procedures of the Department to disclose such information, upon receipt of the information, to the public housing agency that owns or oper ates the public housing dwelling unit in which such family resides or that provides the housing assistance under this Act on behalf of such family, as applicable.

(2) FAMILIES COVERED.-A family described in this paragraph is a family that resides in a dwelling unit—

(A) that is a public housing dwelling unit; or

(B) for which tenant-based assistance is provided

under section 8.

1 This subsection was added by section 508(b)(1)(B) of the Quality Housing and Work Responsibility Act of 1998, title V of Public Law 105-276, approved October 21, 1998. Pursuant to section 503 of such Act (set forth in the footnote on page 114 of this compilation), the amendment was made on the date of enactment, but applies beginning upon October 1, 1999.

2 This subsection was added by section 508(d)(1) of the Quality Housing and Work Responsi bility Act of 1998, title V of Public Law 105-276, approved October 21, 1998. Pursuant to section 503 of such Act (set forth in the footnote on page 114 of this compilation), the amendment was made on the date of enactment (and, therefore, the new subsection is shown), but applies begin

ning upon October 1, 1999.