Housing Opportunity and Responsibility Act memo, April 24, 1997

From: J.P. Subject: H.R. 2, the Housing Opportunity and Responsibility Act Date: April 24, 1997 Dear Staff: Last night, the House Banking Committee passed H.R. 2, the Housing Opportunity and Responsibility Act, by a vote of 28-1 8. This significant housing reform bill will be on the floor of the House next week. Please take a moment to familiarize yourself with the following provisions contained in H.R. 2: Section 105 0 rats): This section requires persons living in federally-assisted housing to complete 8 hours of community service per month. The bill exempts those that arc (1) elderly; (2) disabled; (3) working; and (4) in school. The purpose of this provision is to require able-bodied people receiving government assistance to give back to the community. Hopefully, their community service will lead to possible job opportunities or a more healthy neighborhood environment. This should be a great issue for our conservative base. Section 222 (Targeting'): This section requires Public Housing Agencies (PHAs) to provide an appropriate income mix in housing projects. The purpose of this provision is to fully integrate public housing and move away from “warehousing” the poorest of the poor. A housing project with a healthy income mix will provide more stability in the community. s section maintains the Brooke Amendment (tenets must pay 30% of their income for rent), while offering the tenant the option of a flat rent (similar to the private market). The purpose of this provision is to eliminate the disincentive to work longer hours and generate more income as well as not punishing those who receive pay raises or bonuses. Tifle.iv (Home Rule Flexible Grant Option): This title offers local governments and municipalities the opportunity to design their own creative solutions to public housing problems. This proposal must be submitted and approved by the Secretary of HUD. s section establishes an Accreditation Board (similar to scholastic institutions) that will operate outside of HUD to evaluate the 3400 PHAs. Section 601 (Repeal 1937 Housing Law-): This section repeals the outdated public housing law of 1 937. This is symbolic of the new approach to reforming housing polices.