HR5827-118

1. Short title This Act may be cited as the Tenants’ Right to Organize Act.

2. Sense of the Congress It is the sense of the Congress that all members of a household receiving tenant-based rental assistance have the right to decent, safe, stable and sanitary housing.

3. Housing choice voucher tenant organizations 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: Tenants receiving tenant-based rental assistance have the right to establish, operate, and participate in a resident organization for the purpose of addressing issues related to their living environment, which includes the terms and conditions of their tenancy as well as activities related to housing and community development and may not be retaliated against for asserting these rights. Each public housing agency shall— recognize legitimate tenant organizations; solicit comments from all legitimate tenant organizations not less than once each year; and not later than 60 days after receiving a comment from a legitimate tenant organization, meaningfully respond in writing to such comment. Each owner— shall recognize legitimate resident organizations; and may not retaliate with respect to any tenant because of their association with a legitimate resident organization. Each public housing agency and each owner may not interfere with the right of tenants to establish and operate a legitimate tenant organization. Each public housing agency and each owner shall allow tenants and tenant organizers to conduct the following activities related to the establishment or operation of a tenant organization: Distributing leaflets in lobby areas. Placing leaflets at or under tenants' doors. Distributing leaflets in common areas. Initiating contact with tenants. Conducting door-to-door surveys of tenants to ascertain interest in establishing a legitimate tenant organization and to offer information about tenant organizations. Posting information on bulletin boards. Assisting tenants to participate in tenant organization activities. Convening regularly scheduled tenant organization meetings in a space on site and accessible to tenants, in a manner that is fully independent of management representatives. In order to preserve the independence of tenant organizations, management representatives may not attend such meetings unless invited by the tenant organization to specific meetings to discuss a specific issue or issues. Other reasonable activities related to the establishment or operation of a tenant organization. A public housing agency or owner may not require tenants or tenant organizers to obtain prior permission before engaging in the activities permitted under this paragraph. If a public housing agency or owner takes an adverse action against a tenant that is a member of a tenant organization there shall be a rebuttable presumption that such adverse action is an act of retaliation relating to the participation of the tenant in the tenant organization. The Secretary shall, not later than 1 year after the date of the enactment of this paragraph, establish a protocol for the enforcement of this paragraph and such protocol shall— include an independent investigation of tenant and advocate allegations of abuse and retaliation; provide a mechanism for administrative complaints to be made and cataloged; keep tenants regularly informed about the progression of any complaint; prohibit the withholding of tenant-based rental assistance from any tenant that makes a complaint, until such complaint is closed; and provide confidentiality where necessary, including in cases where alleged abuse is extreme and targeted. In developing the enforcement protocol under clause (i), the Secretary may use subcontractors to preform enforcement activities. The Secretary shall each quarter submit to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs, a report with respect to the enforcement of this paragraph that— provides all data at both the property-level and jurisdiction-level; and includes information with respect to— the volume of outstanding complaints; the average response time for initial complaint; and the average time it takes to close a complaint. There are authorized to be appropriated, to the Secretary, such sums as are necessary to carry out this paragraph. Each public housing agency shall notify each tenant receiving tenant-based rental assistance of the right to organize described in subparagraph (A) annually during the recertification process. The Secretary shall update the most recent Tenancy Addendum for the Section 8 Tenant-Based Assistance Housing Choice Voucher Program to describe the right to organize provided for in this subsection. In this paragraph: The term tenant organizer means a tenant or non-tenant who assists tenants in establishing and operating a tenant organization, and who is not an employee or representative of current or prospective owners, managers, or their agents. The term legitimate tenant organization means an organization of 3 more tenants receiving tenant-based rental assistance that has been established for the purpose described in subparagraph (A). The term owner means a person who owns a dwelling unit occupied by a tenant that receives rental assistance. (23)Right to organize(A)In generalTenants receiving tenant-based rental assistance have the right to establish, operate, and participate in a resident organization for the purpose of addressing issues related to their living environment, which includes the terms and conditions of their tenancy as well as activities related to housing and community development and may not be retaliated against for asserting these rights.(B)Required engagement(i)Public Housing AgenciesEach public housing agency shall—(I)recognize legitimate tenant organizations;(II)solicit comments from all legitimate tenant organizations not less than once each year; and(III)not later than 60 days after receiving a comment from a legitimate tenant organization, meaningfully respond in writing to such comment.(ii)Owners of unitsEach owner—(I)shall recognize legitimate resident organizations; and(II)may not retaliate with respect to any tenant because of their association with a legitimate resident organization. (C)Protections(i)In generalEach public housing agency and each owner may not interfere with the right of tenants to establish and operate a legitimate tenant organization.(ii)Protected activitiesEach public housing agency and each owner shall allow tenants and tenant organizers to conduct the following activities related to the establishment or operation of a tenant organization: (I)Distributing leaflets in lobby areas. (II)Placing leaflets at or under tenants' doors.(III)Distributing leaflets in common areas.(IV)Initiating contact with tenants.(V)Conducting door-to-door surveys of tenants to ascertain interest in establishing a legitimate tenant organization and to offer information about tenant organizations.(VI)Posting information on bulletin boards.(VII)Assisting tenants to participate in tenant organization activities.(VIII)Convening regularly scheduled tenant organization meetings in a space on site and accessible to tenants, in a manner that is fully independent of management representatives. In order to preserve the independence of tenant organizations, management representatives may not attend such meetings unless invited by the tenant organization to specific meetings to discuss a specific issue or issues.(IX)Other reasonable activities related to the establishment or operation of a tenant organization.(iii)PermissionA public housing agency or owner may not require tenants or tenant organizers to obtain prior permission before engaging in the activities permitted under this paragraph.(iv)PresumptionIf a public housing agency or owner takes an adverse action against a tenant that is a member of a tenant organization there shall be a rebuttable presumption that such adverse action is an act of retaliation relating to the participation of the tenant in the tenant organization.(D)Enforcement protocol(i)In generalThe Secretary shall, not later than 1 year after the date of the enactment of this paragraph, establish a protocol for the enforcement of this paragraph and such protocol shall—(I)include an independent investigation of tenant and advocate allegations of abuse and retaliation;(II)provide a mechanism for administrative complaints to be made and cataloged;(III)keep tenants regularly informed about the progression of any complaint;(IV)prohibit the withholding of tenant-based rental assistance from any tenant that makes a complaint, until such complaint is closed; and(V)provide confidentiality where necessary, including in cases where alleged abuse is extreme and targeted.(ii)DelegationIn developing the enforcement protocol under clause (i), the Secretary may use subcontractors to preform enforcement activities. (iii)ReportThe Secretary shall each quarter submit to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs, a report with respect to the enforcement of this paragraph that—(I)provides all data at both the property-level and jurisdiction-level; and(II)includes information with respect to—(aa)the volume of outstanding complaints;(bb)the average response time for initial complaint; and(cc)the average time it takes to close a complaint.(iv)Authorization of appropriationsThere are authorized to be appropriated, to the Secretary, such sums as are necessary to carry out this paragraph. (E)Notice of right to organize(i)In generalEach public housing agency shall notify each tenant receiving tenant-based rental assistance of the right to organize described in subparagraph (A) annually during the recertification process. (ii)Tenancy addendumThe Secretary shall update the most recent Tenancy Addendum for the Section 8 Tenant-Based Assistance Housing Choice Voucher Program to describe the right to organize provided for in this subsection.(F)DefinitionsIn this paragraph:(i)Tenant organizerThe term tenant organizer means a tenant or non-tenant who assists tenants in establishing and operating a tenant organization, and who is not an employee or representative of current or prospective owners, managers, or their agents.(ii)Legitimate tenant organizationThe term legitimate tenant organization means an organization of 3 more tenants receiving tenant-based rental assistance that has been established for the purpose described in subparagraph (A).(iii)OwnerThe term owner means a person who owns a dwelling unit occupied by a tenant that receives rental assistance..

4. LIHTC tenant organizations Section 42(g) of the Internal Revenue Code of 1986 is amended by adding at the end the following new paragraph: Tenants of rent-restricted units in any qualified low-income housing project shall have the same right as tenants described in section 8(o)(23)(A) of the United States Housing Act of 1937. Each owner of qualified low-income housing project must meet the requirements in subparagraphs (B)(ii) and (C) of section 8(o)(23) of the United States Housing Act of 1937. If an owner fails to meet the requirements referred to in clause (i) with respect to any qualified low-income housing project, the credits allowed under this section with respect to such project shall be disallowed or recaptured in an amount that is proportionate to the violation, as determined by the Secretary, but in no case less than 5 percent of the credits claimed during the taxable year during which the violation occurred. In the case of any failure referred to in clause (ii) that occurs after the expiration of the project’s compliance period (as determined under subsection (i)(1)), the Secretary shall levy fines in accordance with a schedule determined by the Secretary that shall establish fines of not less than $500 per day for each day after the end of the correction period established by the Secretary. The Secretary shall establish such schedule not later than 120 days after the date of the enactment of this Act. The Secretary may delegate its duty to levy fines to the State housing credit agencies. Each State housing credit agency must meet the requirements which are the same as the requirements of subparagraphs (B)(i) and (C) of section 8(o)(23) of the United States Housing Act of 1937. If a State housing credit agency fails to meet the requirements referred to in clause (i), there shall be a reduction in the State housing credit agency’s State housing credit ceiling (as calculated under subsection (h)(3)(C)) during the calendar year following a violation in an amount determined by the Secretary. Individuals who meet the income limitation applicable to the building under this subsection (whether prospective, present, or former occupants of the building) may file an action at law or in equity, in Federal or State court, including for injunctive relief, to enforce the various provisions of this section. The Secretary, after consultation with the Secretary of Housing and Urban Development, shall— establish a protocol for the enforcement of this paragraph which is the same as the protocol established under section 8(o)(23)(D)(i) of the United States Housing Act of 1937, except that, for purposes of this subparagraph, the reference in such section to tenant-based rental assistance shall be treated as a reference to the right of the tenant to occupy a rent-restricted unit and to any other right or privilege required to be provided to such tenant as a condition of the project being treated as a qualified low-income housing project, and submit each quarter to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a report containing the information described in section 8(o)(23)(D)(ii) of the United States Housing Act of 1937 with respect to the enforcement of this paragraph with respect to qualified low-income housing projects. Each State housing credit agency shall annually notify each owner and tenant of a rent-restricted unit of a qualified low-income housing project of the right to organize referred to in subparagraph (A). The amendment made by this section shall apply to taxable years beginning after the date of the enactment of this Act. (10)LIHTC tenant organizations(A)Rights of tenantsTenants of rent-restricted units in any qualified low-income housing project shall have the same right as tenants described in section 8(o)(23)(A) of the United States Housing Act of 1937.(B)Responsibilities of owners(i)Each owner of qualified low-income housing project must meet the requirements in subparagraphs (B)(ii) and (C) of section 8(o)(23) of the United States Housing Act of 1937.(ii)If an owner fails to meet the requirements referred to in clause (i) with respect to any qualified low-income housing project, the credits allowed under this section with respect to such project shall be disallowed or recaptured in an amount that is proportionate to the violation, as determined by the Secretary, but in no case less than 5 percent of the credits claimed during the taxable year during which the violation occurred.(iii)In the case of any failure referred to in clause (ii) that occurs after the expiration of the project’s compliance period (as determined under subsection (i)(1)), the Secretary shall levy fines in accordance with a schedule determined by the Secretary that shall establish fines of not less than $500 per day for each day after the end of the correction period established by the Secretary. The Secretary shall establish such schedule not later than 120 days after the date of the enactment of this Act. The Secretary may delegate its duty to levy fines to the State housing credit agencies.(C)Responsibilities of State Housing Agencies(i)Each State housing credit agency must meet the requirements which are the same as the requirements of subparagraphs (B)(i) and (C) of section 8(o)(23) of the United States Housing Act of 1937.(ii)If a State housing credit agency fails to meet the requirements referred to in clause (i), there shall be a reduction in the State housing credit agency’s State housing credit ceiling (as calculated under subsection (h)(3)(C)) during the calendar year following a violation in an amount determined by the Secretary.(D)Establishment of private right to actionIndividuals who meet the income limitation applicable to the building under this subsection (whether prospective, present, or former occupants of the building) may file an action at law or in equity, in Federal or State court, including for injunctive relief, to enforce the various provisions of this section.(E)Enforcement protocolThe Secretary, after consultation with the Secretary of Housing and Urban Development, shall—(i)establish a protocol for the enforcement of this paragraph which is the same as the protocol established under section 8(o)(23)(D)(i) of the United States Housing Act of 1937, except that, for purposes of this subparagraph, the reference in such section to tenant-based rental assistance shall be treated as a reference to the right of the tenant to occupy a rent-restricted unit and to any other right or privilege required to be provided to such tenant as a condition of the project being treated as a qualified low-income housing project, and(ii)submit each quarter to the Committee on Ways and Means of the House of Representatives and the Committee on Finance of the Senate a report containing the information described in section 8(o)(23)(D)(ii) of the United States Housing Act of 1937 with respect to the enforcement of this paragraph with respect to qualified low-income housing projects.(F)Notice of right to organizeEach State housing credit agency shall annually notify each owner and tenant of a rent-restricted unit of a qualified low-income housing project of the right to organize referred to in subparagraph (A)..

6. Clarification of tenant participation in multi-family projects Section 202(a) of the Housing and Community Development Amendments of 1978 (12 U.S.C. 1715z–1b(a)) is amended by striking under section 1437f of title 42 and inserting under section 1437f of title 42, including a project assisted under section 8(o)(13) of the Housing Act of 1937.

7. Rulemaking The Secretary of Housing and Urban Development shall, not later than 1 year after the date of the enactment of this section, issue a rule revising section 964.150 of title 24, Code of Federal Regulations, to permit housing agencies to fund $25 per unit per year for units represented by duly elected resident councils for resident services.

8. Survey The Secretary of Housing and Urban Development shall, not later than 1 year after the date of the enactment of this section, develop a resident survey protocol based on the National Standards for the Physical Inspection of Real Estate, that is designed to collect insights on resident experiences with the inspection process. Information collected through the survey protocol developed pursuant to subsection (a) shall be used to— identify inspection-related challenges for residents; improve the satisfaction of residents with respect to their housing conditions; ensure resident voices are heard; and provide quality control.