H.R. 1981

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1981 Introduced in House (IH)]

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119th CONGRESS
1st Session
H. R. 1981

To increase the number of landlords participating in the Housing Choice 
Voucher program.

_______________________________________________________________________

IN THE HOUSE OF REPRESENTATIVES

March 10, 2025

Mr. Cleaver (for himself, Mr. Lawler, Mr. Casten, Mr. Gooden, Mr. 
Lynch, and Mr. Ciscomani) introduced the following bill; which was 
referred to the Committee on Financial Services

_______________________________________________________________________

A BILL

To increase the number of landlords participating in the Housing Choice 
Voucher program.

Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the ``Choice in Affordable Housing Act of 
2025''.

SEC. 2. DEFINITIONS.

In this Act--
(1) the term ``Housing Choice Voucher program'' means the 
tenant-based assistance program under section 8(o) of the 
United States Housing Act of 1937 (42 U.S.C. 1437f(o));
(2) the term ``Secretary'' means the Secretary of Housing 
and Urban Development; and
(3) the term ``Tribal Housing and Urban Development-
Veterans Affairs Supportive Housing program'' means the 
demonstration program established under paragraph (5) under the 
heading ``tenant-based rental assistance'' under the heading 
``Public and Indian Housing'' in title II of division K of the 
Consolidated and Further Continuing Appropriations Act, 2015 
(Public Law 113-235; 128 Stat. 2732) (commonly known as 
``Tribal HUD-VASH'').

SEC. 3. FINDINGS.

Congress finds the following:
(1) The Housing Choice Voucher program is the Federal 
Government's largest program helping low-income families, the 
elderly, and persons with disabilities to afford decent, safe, 
and sanitary housing in the private market.
(2) The Housing Choice Voucher program is proven to have 
positive impacts on voucher holders, including increased 
housing stability, reduced homelessness, and children lifted 
out of poverty.
(3) As a public-private partnership, the Housing Choice 
Voucher program relies on the willingness of private landlords 
to accept vouchers.
(4) Landlord participation is declining in the Housing 
Choice Voucher program, with an average of 10,000 housing 
providers leaving the program each year between 2010 and 2016.
(5) Landlord participation is especially lacking in ``high-
opportunity neighborhoods'' that have low poverty rates and 
good access to quality schools, jobs, and public 
transportation.
(6) The Secretary has conducted and continues to conduct 
research on landlord participation in the Housing Choice 
Voucher program.
(7) The Moving to Work demonstration program of the 
Department of Housing and Urban Development has given 
participating public housing agencies the ability to test 
innovative strategies to incentivize landlords to accept 
vouchers.
(8) Indian Tribes and tribally designated housing entities, 
which do not participate in the Housing Choice Voucher program, 
benefit from the Tribal Housing and Urban Development-Veterans 
Affairs Supportive Housing program, which provides rental 
assistance to Native American veterans who are experiencing or 
at risk of experiencing homelessness.

SEC. 4. SENSE OF CONGRESS.

It is the sense of Congress that the Housing Choice Voucher program 
should be improved to increase the number of landlords, particularly 
landlords with units in high-opportunity neighborhoods, who accept 
vouchers in order to expand housing choice and opportunity, and further 
fair housing.

SEC. 5. INCENTIVIZING LANDLORD PARTICIPATION IN HOUSING CHOICE VOUCHER 
PROGRAM.

(a) One-Time Incentive Payments.--Section 8(o) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(o)) is amended by adding at the 
end the following:
``(23) One-time incentive payments.--
``(A) Definition.--In this paragraph, the term 
`eligible unit' means a dwelling unit that--
``(i) is located in a census tract with a 
poverty rate of less than 20 percent; and
``(ii) has not previously been subject to a 
housing assistance payment contract under this 
subsection.
``(B) Incentive payment authority.--
``(i) In general.--To incentivize landlords 
who own dwelling units in low-poverty areas to 
enter into housing assistance payment contracts 
under this subsection, the Secretary shall 
provide assistance under this paragraph to 
public housing agencies to be used to offer a 
one-time payment directly to the owner of an 
eligible unit entering into a housing 
assistance payment contract with the public 
housing agency for the eligible unit.
``(ii) Amount.--The amount of an incentive 
payment made to an eligible owner under clause 
(i) may not exceed 200 percent of the monthly 
housing assistance payment made to the eligible 
owner for the eligible unit.
``(iii) Conditions permitted.--Subject to 
paragraph (7), a public housing agency may 
require the owner of an eligible unit, as a 
condition of receiving an incentive payment 
under clause (i), to commit to lease the 
eligible unit to tenants assisted under this 
subsection for more than 1 year.
``(iv) Limit.--The owner of an eligible 
unit may not receive more than 1 incentive 
payment under clause (i), regardless of--
``(I) the number of eligible units 
owned by the owner; or
``(II) the number of public housing 
agencies with which the owner has 
entered into housing assistance payment 
contracts.''.
(b) Security Deposit Payments.--Section 8(o) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(o)), as amended by subsection (a), 
is amended by adding at the end the following:
``(24) Security deposit payments.--
``(A) Security deposit payment authority.--The 
Secretary shall provide assistance to public housing 
agencies to be used to pay the owner of a dwelling unit 
assisted under this subsection for a security deposit, 
or a substantial portion thereof, on behalf of the 
tenant of the dwelling unit in accordance with 
subparagraph (B).
``(B) Minimum pha requirements.--A public housing 
agency that receives assistance from the Secretary 
under subparagraph (A) shall administer the assistance 
in accordance with the following conditions:
``(i) The public housing agency shall pay 
the owners of dwelling units assisted under 
this subsection for a security deposit, or a 
substantial portion thereof, in an amount 
determined by the public housing agency, on 
behalf of the tenants of the dwelling units.
``(ii) In making payments to owners of 
dwelling units under clause (i), the public 
housing agency shall give priority to owners of 
dwelling units occupied by extremely low-income 
families.
``(iii) The owner of a dwelling unit may 
deduct amounts from a security deposit payment 
received under clause (i) to cover damages 
beyond normal wear and tear caused by the 
tenant of the dwelling unit, any member of the 
tenant's household, or any guest or other 
person under the tenant's control.
``(iv) The public housing agency shall 
conduct a damage claims process whereby--
``(I) in order to deduct amounts 
from a security deposit payment 
received under clause (i), the owner of 
a covered dwelling unit must submit a 
claim to the public housing agency with 
an itemized list of damages and 
evidence and request reimbursement; and
``(II) the tenant of a covered 
dwelling unit may refute a claim 
submitted under subclause (I).
``(v) The public housing agency shall--
``(I) establish an amount of repair 
costs for which a tenant will be 
responsible; and
``(II) notify a tenant, upon the 
tenant entering into a lease for a 
dwelling unit assisted under this 
subsection, of the amount described in 
subclause (I).
``(vi) The public housing agency may 
determine what action to take if a tenant 
demonstrates an inability to pay the amount of 
repair costs for which the tenant is 
responsible under clause (v).
``(vii) At the end of a tenant's occupancy 
of a dwelling unit assisted under this 
subsection, the landlord shall return to the 
public housing agency any unused amount of a 
security deposit payment received under clause 
(i).
``(C) Rule of construction.--Nothing in 
subparagraph (B) shall be construed to prohibit a 
public housing agency from establishing additional 
conditions for the administration of assistance 
received under subparagraph (A) in accordance with 
applicable State and local laws.''.
(c) Landlord Liaison Bonus Payments.--Section 8(o) of the United 
States Housing Act of 1937 (42 U.S.C. 1437f(o)), as amended by 
subsection (b), is amended by adding at the end the following:
``(25) Landlord liaison bonus payments.--
``(A) In general.--Each year, the Secretary shall 
award 1 bonus payment to each public housing agency 
that employs, contracts with a service partner that 
employs, or demonstrates an intent to employ or 
contract with a service partner that employs, not less 
than 1 dedicated landlord liaison whose duties include, 
with respect to the tenant-based assistance program 
under subsection (o)--
``(i) conducting landlord outreach, 
recruitment, and retention;
``(ii) educating and training landlords 
regarding the program; and
``(iii) operating a phone hotline, online 
portal, monitored email address, or other 
mechanism designated by the Secretary for 
landlord questions and concerns regarding the 
program.
``(B) Demonstrating compliance.--The Secretary 
shall determine how a public housing agency may 
demonstrate that it offers or intends to offer a 
landlord liaison service for purposes of subparagraph 
(A).
``(C) Amount.--The Secretary shall establish an 
amount for the landlord liaison bonus payment 
authorized under subparagraph (A) that--
``(i) may vary by region;
``(ii) does not exceed the 150 percent of 
the average cost of employing, or contracting 
with a service partner that employs, such a 
landlord liaison, based on local market 
conditions; and
``(iii) is sufficient to incentivize public 
housing agencies to employ, or contact with a 
service partner that employs, such a landlord 
liaison.''.
(d) Housing Partnership Fund.--Section 8 of the United States 
Housing Act of 1937 (42 U.S.C. 1437f) is amended by adding at the end 
the following:
``(ee) Herschel Lashkowitz Housing Partnership Fund.--
``(1) Establishment.--The Secretary shall establish a fund, 
to be known as the `Herschel Lashkowitz Housing Partnership 
Fund', for the purpose of incentivizing landlords to 
participate in the tenant-based assistance program under 
subsection (o) in accordance with paragraph (2) of this 
subsection.
``(2) Authorized uses.--The Secretary shall use amounts 
from the Housing Partnership Fund for--
``(A) incentive payments under subsection (o)(23);
``(B) security deposit payments under subsection 
(o)(24);
``(C) landlord liaison bonus payments under 
subsection (o)(25); and
``(D) other uses, as determined by a public housing 
agency and approved by the Secretary, designed 
primarily--
``(i) to recruit owners of dwelling units, 
particularly dwelling units in census tracts 
with a poverty rate of less than 20 percent, to 
enter into housing assistance payment contracts 
under subsection (o); and
``(ii) to ensure that owners that enter 
into housing assistance payment contracts as 
described in clause (i) of this subparagraph 
continue to lease their dwelling units to 
tenants assisted under subsection (o).
``(3) Reports.--The Secretary shall require a public 
housing agency that receives assistance from the Herschel 
Lashkowitz Housing Partnership Fund to submit an annual report 
to the Secretary on the use of the assistance.
``(4) Authorization of additional appropriations.--There is 
authorized to be appropriated for deposit in the Herschel 
Lashkowitz Housing Partnership Fund $100,000,000 for each of 
fiscal years 2025 through 2029, to remain available until 
expended.''.

SEC. 6. HOUSING QUALITY STANDARDS.

(a) Satisfaction of Inspection Requirements Through Participation 
in Other Housing Programs.--Section 8(o)(8) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(o)(8)), as amended by section 
101(a) of the Housing Opportunity Through Modernization Act of 2016 
(Public Law 114-201; 130 Stat. 783), is amended by adding at the end 
the following:
``(I) Satisfaction of inspection requirements 
through participation in other housing programs.--
``(i) Low-income housing tax credit-
financed buildings.--A dwelling unit shall be 
deemed to meet the inspection requirements 
under this paragraph if--
``(I) the dwelling unit is in a 
building, the acquisition, 
rehabilitation, or construction of 
which was financed by a person who 
received a low-income housing tax 
credit under section 42 of the Internal 
Revenue Code of 1986 in exchange for 
that financing;
``(II) the dwelling unit was 
physically inspected and passed 
inspection as part of the low-income 
housing tax credit program described in 
subclause (I) during the preceding 12-
month period; and
``(III) the applicable public 
housing agency is able to obtain the 
results of the inspection described in 
subclause (II).
``(ii) HOME investment partnerships 
program.--A dwelling shall be deemed to meet 
the inspection requirements under this 
paragraph if--
``(I) the dwelling unit is assisted 
under the HOME Investment Partnerships 
Program under title II of the Cranston-
Gonzalez National Affordable Housing 
Act (42 U.S.C. 12721 et seq.);
``(II) the dwelling unit was 
physically inspected and passed 
inspection as part of the program 
described in subclause (I) during the 
preceding 12-month period; and
``(III) the applicable public 
housing agency is able to obtain the 
results of the inspection described in 
subclause (II).
``(iii) Rural housing service.--A dwelling 
unit shall be deemed to meet the inspection 
requirements under this paragraph if--
``(I) the dwelling unit is assisted 
by the Rural Housing Service of the 
Department of Agriculture;
``(II) the dwelling unit was 
physically inspected and passed 
inspection in connection with the 
assistance described in subclause (I) 
during the preceding 12-month period; 
and
``(III) the applicable public 
housing agency is able to obtain the 
results of the inspection described in 
subclause (II).
``(iv) Rule of construction.--Nothing in 
clause (i), (ii), or (iii) shall be construed 
to affect the operation of a housing program 
described in, or authorized under a provision 
of law described in, that clause.''.
(b) Pre-Approval of Units.--Section 8(o)(8)(A) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(o)(8)(A)) is amended by adding at 
the end the following:
``(iv) Initial inspection prior to lease 
agreement.--
``(I) Definition.--In this clause, 
the term `new landlord' means an owner 
of a dwelling unit who has not 
previously entered into a housing 
assistance payment contract with a 
public housing agency under this 
subsection for any dwelling unit.
``(II) Early inspection.--Upon the 
request of a new landlord, a public 
housing agency may inspect the dwelling 
unit owned by the new landlord to 
determine whether the unit meets the 
housing quality standards under 
subparagraph (B) before the unit is 
selected by a tenant assisted under 
this subsection.
``(III) Effect.--An inspection 
conducted under subclause (II) that 
determines that the dwelling unit meets 
the housing quality standards under 
subparagraph (B) shall satisfy this 
subparagraph and subparagraph (C) if 
the new landlord enters into a lease 
agreement with a tenant assisted under 
this subsection not later than 60 days 
after the date of the inspection.
``(IV) Information when family is 
selected.--When a public housing agency 
selects a family to participate in the 
tenant-based assistance program under 
this subsection, the public housing 
agency shall include in the information 
provided to the family a list of 
dwelling units that have been inspected 
under subclause (II) and determined to 
meet the housing quality standards 
under subparagraph (B).''.

SEC. 7. SMALL AREA FAIR MARKET RENT.

(a) Use of Small Area Fair Market Rent.--Section 8(o)(1) of the 
United States Housing Act of 1937 (42 U.S.C. 1437f(o)(1)) is amended by 
adding at the end the following:
``(F) Small area fair market rent.--
``(i) Definitions.--In this subparagraph--
``(I) the term `metropolitan area' 
means a metropolitan statistical area, 
as defined by the Office of Management 
and Budget; and
``(II) the term `small area fair 
market rent' means the fair market rent 
established for a ZIP Code area within 
a metropolitan area.
``(ii) Use of small area fair market 
rent.--Notwithstanding subsection (c) or any 
other provision of this subsection, not later 
than 3 years after the date of enactment of 
this subparagraph, the Secretary shall 
designate a number of metropolitan areas in 
which public housing agencies are required to 
use the small area fair market rent to 
determine the fair market rental for dwelling 
units for purposes of tenant-based assistance 
under this subsection that is not less than 3 
times the number of metropolitan areas so 
designated in the final rule of the Secretary 
entitled `Establishing a More Effective Fair 
Market Rent System; Using Small Area Fair 
Market Rents in the Housing Choice Voucher 
Program Instead of the Current 50th Percentile 
FMRs', published in the Federal Register on 
November 16, 2016 (81 Fed. Reg. 80567).
``(iii) Hold harmless.--If the application 
of clause (ii) would cause a decrease in the 
payment standard used to calculate the amount 
of tenant-based assistance provided to a family 
under this subsection, a public housing agency 
shall continue to use the existing higher 
payment standard to calculate the amount of 
such assistance for the family for as long as 
the family continues to receive such assistance 
in the same dwelling unit.''.
(b) Conforming Amendment.--Section 8(o)(1)(B) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(o)(1)(B)) is amended by inserting 
after ``subsection (c)'' the following: ``(subject to subparagraph (F) 
of this paragraph)''.

SEC. 8. SECTION 8 MANAGEMENT ASSESSMENT PROGRAM.

(a) Definition.--In this section, the term ``Section 8 Management 
Assessment Program'' means the program set forth in part 985 of title 
24, Code of Federal Regulations (or any successor regulation).
(b) Deconcentration of Participating Dwelling Units.--The Secretary 
shall explore ways to reform and modernize the Section 8 Management 
Assessment Program to assess public housing agencies in a manner that 
promotes--
(1) positive interactions with landlords, including timely 
payment of rent and identification of the dwelling unit for 
which a subsidy payment is being made; and
(2) an increase in the diversity of areas where dwelling 
units are leased to support voucher holders who want to access 
to low-poverty, integrated neighborhoods.
(c) Rule of Construction.--Nothing in subsection (b) shall be 
construed to prevent the Secretary from--
(1) reforming the Section 8 Management Assessment Program 
to assess public housing agencies in other areas of 
performance; or
(2) reforming the Section 8 Management Assessment Program 
in any other manner, at the discretion of the Secretary.

SEC. 9. ANNUAL REPORT ON EFFECTIVENESS OF ACT.

(a) Definitions.--In this section--
(1) the term ``appropriate congressional committees'' 
means--
(A) the Committee on Banking, Housing, and Urban 
Affairs of the Senate;
(B) the Subcommittee on Transportation, Housing and 
Urban Development, and Related Agencies of the 
Committee on Appropriations of the Senate;
(C) the Committee on Financial Services of the 
House of Representatives; and
(D) the Subcommittee on Transportation, Housing and 
Urban Development, and Related Agencies of the 
Committee on Appropriations of the House of 
Representatives; and
(2) the term ``high-opportunity area''--
(A) shall be defined by the Secretary for purposes 
of this section; and
(B) does not include any census tract in which the 
poverty rate is equal to or greater than 20 percent.
(b) Report.--Not later than 1 year after the date of enactment of 
this Act, and annually thereafter for 5 total years, the Secretary 
shall submit to the appropriate congressional committees and make 
publicly available a report that--
(1) evaluates the effectiveness of this Act and the 
amendments made by this Act in recruiting and retaining 
landlords who accept vouchers under the Housing Choice Voucher 
program, particularly landlords with dwelling units in high-
opportunity neighborhoods; and
(2) includes--
(A) the number of landlords in the United States 
who accept housing choice vouchers under the Housing 
Choice Voucher program and the number of dwelling units 
assisted under the Housing Choice Voucher program;
(B) any net changes to the number of landlords or 
dwelling units described in subparagraph (A) during the 
preceding year;
(C) the number of landlords described in 
subparagraph (A) who own disability-accessible dwelling 
units assisted under the Housing Choice Voucher program 
and the number of those dwelling units; and
(D) the number of landlords described in 
subparagraph (A) who own dwelling units assisted under 
the Housing Choice Voucher program in high-opportunity 
areas and the number of those dwelling units.
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