SEC-525 -- STUDY OF PROSPECTIVE PAYMENT SYSTEM FOR PUBLIC HOUSING. 

 
 The Secretary of Housing and Urban Development shall carry out a study
assessing one or more revised methods of providing Federal housing
assistance through local public housing agencies (in this section
referred to as "PHA's"). In analyzing such alternatives, the Secretary
shall examine methods of prospective payment, including the conversion
of PHA operating assistance, modernization, and other Federal housing
assistance to a schedule of steady and predictable capitated Federal
payments to PHA's on behalf of low income public housing tenants. The
Secretary shall assess, within the capitated funding alternative, means
of (1) providing for tenant participation in the release of such
capitated payments to PHA's; (2) providing financial incentives for PHA
overall performance and efficiency; (3) designating certain PHA's as
distressed and eligible for special Federal assistance; (4) differential
treatment of PHA's based on differences in local population
demographics, rental housing markets, and other pertinent factors, and
(5) calculating annual inflation-based increases in capitated Federal
payments. The report shall be submitted to the Congress not later than
12 months after the date of the enactment of this Act.