SEC-543 -- TENANT RENT CONTRIBUTIONS UNDER TENANT-BASED CERTIFICATE 

 
PROGRAM.
 
 (a) Exception to General Rule.-Section 8(c)(3) of the United States
Housing Act of 1937 is amended-
 
 (1) by inserting "(A)" after the paragraph designation; and
 
 (2) by adding at the end the following new subparagraph:
 
 "(B)(i) A family receiving tenant-based rental assistance under
subsection (b)(1) may pay a higher percentage of income than that
specified under section 3(a) of this Act if-
 
 "(I) the family notifies the local public housing agency of its
interest in a unit renting for an amount which exceeds the permissible
maximum monthly rent established for the market area under paragraph
(1), and
 
 "(II) such agency determines that the rent for the unit and the rental
payments of the family are reasonable, after taking into account other
family expenses (including child care, unreimbursed medical expenses,
and other appropriate family expenses.
 
 "(ii) A public housing agency shall not approve such excess rentals
for more than 10 percent of its annual allocation of incremental rental
assistance under subsection (b)(1). A public housing agency that
approves such excess rentals for more than 5 percent of its annual
allocation shall submit a report to the Secretary not later than 30 days
following the end of the fiscal year. The report shall be submitted in
such form and in accordance with such procedures as the Secretary shall
establish and shall describe the public housing agency's reasons for
making the exceptions, including any available evidence that the
exceptions were made necessary by problems with the fair market rent
established for the area. The Secretary shall ensure that each report
submitted in accordance with this clause is readily available for public
inspection for a period of not less than 3 years, beginning not less
than 30 days following the date on which the report is submitted to the
Secretary.
 
 "(iii) The Secretary shall, not later than 3 months following the end
of each fiscal year, submit a report to Congress that identifies the
public housing agencies that have submitted reports for such fiscal year
under clause (ii), summarizes and assesses such reports, and includes
recommendations for such legislative or administrative actions that the
Secretary deems appropriate to correct problems identified in such
reports.".
 
 (b) Housing Strategy.-The second sentence of section 8(c)(1) of the
United States Housing Act of 1937 (42 U.S.C. 1437f(c)(1)) is amended by-
 
 (1) inserting "(A)" after "fair market rental" the second place it
appears; and
 
 (2) by striking "a local housing assistance plan" and all that
follows through the end of the sentence and inserting the following: "a
housing strategy as defined in section 105 of the Cranston-Gonzalez
National Affordable Housing Act, or (B) by such higher amount as may be
requested by a tenant and approved by the public housing agency in
accordance with paragraph (3)(B).".