Choice Neighborhoods Initiative Act of 2021
This bill allows the Department of Housing and Urban Development to make competitive grants to local governments, public housing agencies, or nonprofit entities owning a major housing project to implement transformational housing programs in eligible neighborhoods with a concentration of extreme poverty and severely distressed housing. A program must, among other requirements, allow residents of public or assisted housing displaced by such a program to return to the replacement housing provided under the program.
To authorize the Department of Housing and Urban Development to 
  transform neighborhoods of extreme poverty into sustainable, mixed-
    income neighborhoods with access to economic opportunities, by 
revitalizing severely distressed housing, and investing and leveraging 
 investments in well-functioning services, educational opportunities, 
public assets, public transportation, and improved access to jobs, and 
                          for other purposes.

    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 Neighborhoods Initiative Act 
of 2021''.

SEC. 2. GRANT AUTHORITY.

    The Secretary of Housing and Urban Development may make competitive 
grants to eligible entities that submit transformation plans for 
eligible neighborhoods that will further the purposes of this Act in 
such neighborhoods.

SEC. 3. ELIGIBLE ENTITIES.

    (a) Primary Applicants.--A grant under this Act may be made only to 
a unit of local government, a public housing agency, or a nonprofit 
entity that owns a major housing project that is proposed to be 
assisted under a grant under this Act, either as a sole applicant or as 
a co-applicant with another unit of local government or public housing 
agency or with an entity specified in subsection (b). A nonprofit 
entity may be a sole applicant only if the application has the support 
of a unit of local government.
    (b) Co-Applicants.--
            (1) Community development corporations.--A community 
        development corporation (as such term is defined in section 
        204(b) of the Departments of Veterans Affairs and Housing and 
        Urban Development, and Independent Agencies Appropriations Act, 
        1997 (12 U.S.C. 1715z-11a(b))) may, at the request of an entity 
        specified in subsection (a), be a co-applicant for a grant 
        under this Act.
            (2) For-profit entities.--A for-profit entity that owns a 
        major housing project that is proposed to be assisted under a 
        grant under this Act made in fiscal year 2022 or thereafter and 
        that has an established presence in the community may be a co-
        applicant for a grant under this Act.
            (3) Required co-applicants.--A grant under this Act may not 
        be made for an application that will involve transformation of 
        a major public housing project unless the public housing agency 
        having jurisdiction with respect to such project is the sole 
        applicant or a co-applicant for such application.
    (c) Partners.--Nothing in this section may be construed to limit 
the ability of an applicant to partner with any entity in carrying out 
activities with a grant under this Act.

SEC. 4. ELIGIBLE NEIGHBORHOODS.

    A grant under this Act may be made only for activities to be 
conducted in neighborhoods that have--
            (1) a concentration of extreme poverty (as such term is 
        defined in section 15); and
            (2) housing that is severely distressed housing (as such 
        term is defined in section 15).

SEC. 5. AUTHORIZED ACTIVITIES.

    (a) In General.--Amounts from a grant under this Act may be used 
only for transformational programs and activities in accordance with a 
transformation plan approved under section 6 that will further the 
purposes of this Act.
    (b) Required Activities.--Each transformation plan submitted 
pursuant to section 6 and implemented by a grantee under this Act shall 
include the following activities:
            (1) The transformation of housing through rehabilitation, 
        preservation, or demolition and replacement of severely 
        distressed housing projects, expansion of affordable housing 
        opportunities, or any combination thereof, which may 
        incorporate energy-efficient design principles.
            (2) The one-for-one replacement of any public and assisted 
        housing units demolished or disposed of in accordance with the 
        requirements under section 8.
            (3) Activities that promote economic self-sufficiency of 
        residents of the revitalized housing and of the surrounding 
        neighborhood.
            (4) Activities that preserve affordable housing in the 
        neighborhood and other activities necessary to ensure that 
        existing public and assisted housing residents have access to 
        the benefits of the neighborhood transformation.
            (5) Activities that demonstrate that each resident of 
        housing assisted by the grant who is displaced by the 
        transformation plan and who wishes to return to the revitalized 
        on-site housing in the neighborhood or to replacement housing 
        outside of the neighborhood, can return, and shall be provided 
        a preference in accordance with the program requirements under 
        section 7.
            (6) Activities that meet the program requirements for 
        replacement of housing units under section 8.
            (7) Activities that meet the fair housing program 
        requirements under section 9(a) and the accessibility 
        requirements under section 9(b).
            (8) Appropriate service coordination and supportive 
        services.
            (9) Resident involvement, as described in section 7, in 
        planning and implementation of the transformation plan, 
        including reasonable steps to help ensure meaningful 
        participation for residents who, as a result of their national 
        origin, are limited in their English language proficiency.
            (10) Monitoring, under section 7(g), of residents relocated 
        during redevelopment throughout the term of the grant or until 
        full occupancy of replacement housing, whichever is completed 
        later.
            (11) Relocation assistance, including tenant-based rental 
        assistance renewable under section 8 of the United States 
        Housing Act of 1937 (42 U.S.C. 1437f), mobility or relocation 
        counseling over multiple years, reasonable moving costs, and 
        security deposits.
            (12) Establishment of links to local education efforts, as 
        described in subsection (c)(3) of this section.
            (13) Activities to comply with section 3 of the Housing and 
        Urban Development Act of 1968 (12 U.S.C. 1701u).
    (c) Eligible Activities.--Amounts from a grant under this Act may 
be used for the following activities:
            (1) Construction, acquisition, or rehabilitation of 
        affordable housing (as such term is defined in section 15), 
        which may include energy efficiency improvements and 
        sustainable design features for such housing.
            (2) Acquisition or disposition of residential properties, 
        including properties subject to a mortgage previously insured, 
        and foreclosed upon, by the Federal Housing Administration, and 
        demolition.
            (3) Outreach to local educators, and engaging in local 
        community planning, to help increase access to educational 
        opportunities, a continuum of effective community services, and 
        strong family supports, and to improve the educational and life 
        outcomes which have a significant benefit to residents of 
        housing assisted under this Act, including children and youth 
        and, as appropriate, for adult residents, including the elderly 
        or persons with disabilities.
            (4) Providing supportive services (as such term is defined 
        in section 15) which have a significant benefit to residents of 
        housing assisted under this Act, primarily focused on services 
        described in subparagraphs (B) and (C) of section 15(14).
            (5) Rehabilitation and physical improvement of community 
        facilities that are primarily intended to facilitate the 
        delivery of community and supportive services which have a 
        significant benefit to residents of housing assisted by the 
        grant and residents of off-site replacement housing.
            (6) Work incentives designed to help low-income residents 
        assisted by the housing under this Act access jobs and move 
        toward self-sufficiency.
            (7) Partnering with employers and for-profit and nonprofit 
        organizations to create jobs and job training opportunities 
        which have a significant benefit to residents of housing 
        assisted under this Act.
            (8) Activities that promote sustainable housing by 
        incorporating principles of sustainable design and development, 
        including energy efficiency.
            (9) Critical community improvements (as such term is 
        defined in section 15 of this Act) undertaken at sites that are 
        adjacent to, or in the immediate vicinity of, housing assisted 
        under this Act.
            (10) Loss reserves to protect residents of housing assisted 
        by the grant and continue the project in the case of default, 
        foreclosure, or any other adverse financial event.
The Secretary shall require any grantee under this Act that will 
provide benefits under paragraph (3), (4), (5), or (7) to any residents 
who are not living in housing assisted with a grant under this Act, to 
submit to the Secretary a plan identifying how such services will be 
provided.
    (d) Eligible Methods of Support.--Activities carried out with 
amounts from a grant under this Act may be carried out through--
            (1) endowments or revolving loan funds; or
            (2) land assembly, land banking, and other activities, 
        except that no amounts made available for use under this Act 
        may be used to acquire any property by means of the exercise of 
        the power of eminent domain.
    (e) Funding Limitations.--
            (1) School buildings.--No amounts from a grant under this 
        Act may be used for construction or rehabilitation of an 
        elementary school or secondary school (as such terms are 
        defined in section 9101 of the Elementary and Secondary 
        Education Act of 1965 (20 U.S.C. 7801)) or an institution of 
        higher education (as such term is defined in section 102 of the 
        Higher Education Act of 1965 (20 U.S.C. 1002)), except that 
        such amounts may be used to construct common infrastructure 
        that is shared by such a school or institution and by housing 
        assisted under this Act, or community facilities authorized 
        under subsection (c)(5), but only if costs are shared on a pro 
        rata basis and the grantee certifies, and the Secretary 
        determines, that such use of funds will not promote or further 
        segregation.
            (2) Non-housing activities and supportive services.--For 
        each grant under this Act, the grantee shall comply with each 
        of the following requirements:
                    (A) Of the amount of the grant, not more than 25 
                percent may be used for eligible activities under 
                paragraphs (3) through (9) of subsection (c).
                    (B) Of the amount of the grant, not more than 5 
                percent may be used for eligible activities under 
                paragraphs (8) and (9) of subsection (c).
            (3) Consultation.--With respect to activities assisted 
        pursuant to paragraph (2), the Secretary shall consult with the 
        Secretary of Labor, the Secretary of Health and Human Services, 
        the Secretary of Energy, the Secretary of Transportation, the 
        Secretary of Education, and the Attorney General in identifying 
        funding resources that may be provided to supplement amounts 
        from grants under this Act.

SEC. 6. SUBMISSION AND SELECTION OF TRANSFORMATION PLANS.

    (a) Transformation Plan Requirements.--To be eligible for a grant 
under this Act, an eligible entity shall submit to the Secretary, at 
such time in accordance with procedures as the Secretary shall 
prescribe, an application in the form of a transformation plan that--
            (1) demonstrates how the transformation plan will achieve 
        the desired priority outcomes of transforming a distressed 
        neighborhood of extreme poverty into a mixed-income 
        neighborhood with high- quality, safe, and affordable housing 
        (including the one-for-one replacement of any public or 
        assisted housing units demolished or disposed of under the 
        transformation plan), economic opportunities, well-functioning 
        services, public assets, access to jobs, public transportation, 
        and effective education programs and public schools, including 
        charter schools and other autonomous public schools;
            (2) demonstrates how the required activities under section 
        5(b) will be carried out, including a detailed description of 
        the housing transformation activities under paragraphs (1) and 
        (2) of such section;
            (3) describes the other eligible activities under section 
        5(c) that will be carried out in support of the housing 
        transformation;
            (4) defines desired outcomes of the strategy, how residents 
        of housing assisted under this Act will benefit, describes the 
        challenges they face, and the evidence base that informs the 
        proposed strategies that will result in the desired outcomes 
        for the community and residents;
            (5) includes a long-term affordability plan, developed in 
        collaboration with residents of the public and assisted housing 
        assisted under this Act, that describes how the grantee will 
        maintain affordable housing in the neighborhood over the next 
        50 years or longer, including affordability provisions relating 
        to dwelling units provided using assistance under the grant 
        under this Act, and an agreement by the applicant to update 
        such plan every 5 years during such period; and
            (6) includes such other information as the Secretary shall, 
        by regulation, prescribe.
    (b) Selection Criteria.--The Secretary shall establish criteria for 
the award of grants under this Act, with the greatest consideration 
given to applicant and neighborhood need as identified in section 4, 
and which shall include the extent to which the transformation plan--
            (1) demonstrates the ability of the plan to further the 
        purposes of this Act;
            (2) demonstrates inclusive local planning with input from 
        units of local government, housing owners and providers, 
        educators, residents of housing assisted under this Act, local 
        community organizations, public schools, early learning in 
        programs, health service organizations, and community 
        stakeholders in the development and implementation of a 
        sustainable revitalization program;
            (3) includes efforts to coordinate multiple funding 
        resources, including public, private, and philanthropic 
        funding, and emphasizes collaboration between the units of 
        local government, early learning programs and public schools, 
        or a public housing agency, or all three;
            (4) includes current data showing that the neighborhood 
        targeted for revitalization is in need of and can benefit from 
        the authorized activities described in section 5 and proposed 
        in the transformation plan;
            (5) demonstrates the capability and record of the applicant 
        and its partners for managing housing redevelopment or 
        modernization projects, successfully working with public and 
        assisted housing residents during the planning and redesign 
        process, and meeting performance benchmarks;
            (6) demonstrates that sustainable building and energy 
        efficient design principles are incorporated or will be 
        incorporated in the activities conducted pursuant to the plan;
            (7) demonstrates that the applicant has plans to have, 
        within a reasonable time, improved access to public 
        transportation in the neighborhood that provides access to 
        economic opportunities and commercial and public services;
            (8) demonstrates that the residents of revitalized housing 
        developments will have, to the extent possible, improved access 
        to high-quality educational opportunities, including early 
        learning and effective elementary and secondary public schools, 
        in or outside of the neighborhood;
            (9) demonstrates that the transformation plan includes the 
        provision of appropriate supportive services and activities 
        that promote economic self-sufficiency of residents of housing 
        assisted under the grant, and a plan to sustain such services;
            (10) demonstrates that the transformation plan provides 
        support for residents displaced as a result of the 
        revitalization of the project, including assistance in 
        obtaining housing in areas with low concentrations of poverty 
        in a manner that does not increase racial segregation;
            (11) demonstrates that sufficient housing opportunities are 
        available in the neighborhood to be revitalized and in low-
        poverty areas to accommodate displaced residents, in a manner 
        that does not increase racial segregation;
            (12) includes a well-documented assessment of the number of 
        households with special needs for ongoing supportive services 
        residing in the public or assisted housing properties that are 
        the target of the grant and an effective plan to address such 
        needs;
            (13) demonstrates the compliance with the requirements of 
        section 8, regarding one-for-one replacement of public and 
        assisted housing units;
            (14) demonstrates how the applicant will use indicators of 
        housing redevelopment, neighborhood quality, resident well-
        being, and other outcomes to measure success, manage program 
        implementation, and engage stakeholders, consistent with 
        requirements established by the Secretary;
            (15) demonstrates, if feasible, phased redevelopment that 
        provides for demolition and construction of dwelling units in 
        phases, to limit disruptions to residents;
            (16) demonstrates that the neighborhood will improve its 
        long-term viability through the revitalization of severely 
        distressed housing, improved access to economic opportunities, 
        improved investment and leveraging in well-functioning 
        services, and improved education programs, public assets, 
        public transportation and access to jobs; and
            (17) demonstrates compliance with any other factors and 
        priorities that further the purposes of this Act, as the 
        Secretary may, by regulation, prescribe.

SEC. 7. RIGHT OF RESIDENTS TO RETURN; RELOCATION.

    (a) Determination of Resident Preferences.--An applicant shall, not 
later than 30 days before submitting an application to the Secretary 
for a grant under this Act--
            (1) hold a community meeting and provide information to all 
        residents who occupy a dwelling unit in public housing or 
        assisted housing subject to the transformation plan of--
                    (A) the applicant's intent to submit an application 
                for a grant under this Act;
                    (B) their right to return and relocation housing 
                options; and
                    (C) all planned replacement housing units; and
            (2) solicit from each resident information regarding the 
        resident's desire to return to the replacement housing units 
        constructed upon the original public or assisted housing 
        location, interest in moving to other neighborhoods or 
        communities, or interest in retaining a voucher for rental 
        assistance.
    (b) Resident Involvement.--
            (1) In general.--Each transformation plan assisted under 
        this Act shall provide opportunities for the active involvement 
        and participation of, and consultation with, residents of the 
        public and assisted housing that is subject to the 
        transformation plan during the planning process for the 
        transformation plan, including prior to submission of the 
        application, and during all phases of the planning and 
        implementation. Such opportunities for participation may 
        include participation of members of any resident council or 
        tenant organization, but may not be limited to such members, 
        and shall include all segments of the population of residents 
        of the public and assisted housing that is subject to the 
        revitalization plan, including single parent-headed households, 
        the elderly, young employed and unemployed adults, teenage 
        youth, and disabled persons. Such opportunities shall include a 
        process that provides opportunity for comment on specific 
        proposals for redevelopment, any demolition and disposition 
        involved, and any proposed significant amendments or changes to 
        the transformation plan.
            (2) Public meeting.--The Secretary may not make a grant 
        under this Act to an applicant unless the applicant has 
        convened and conducted a public meeting regarding the 
        transformation plan, including the one-for-one replacement to 
        occur under the plan, not later than 30 days before submission 
        of the application for the grant under this section for such 
        plan, at a time and location that is convenient for residents 
        of the public and assisted housing subject to the plan.
            (3) Significant amendments or changes to plan.--An 
        applicant may not carry out any significant amendment or change 
        to a transformation plan unless--
                    (A) the applicant has convened and conducted a 
                public meeting regarding the significant amendment or 
                change at a time and location that is convenient for 
                residents of the public and assisted housing subject to 
                the plan and has provided each household occupying a 
                dwelling unit in such public and assisted housing with 
                written notice of such meeting not less than 10 days 
                before such meeting;
                    (B) after such meeting, the applicant consults with 
                the households occupying dwelling units in the public 
                and assisted housing that are subject to, or to be 
                subject to the plan, and the agency submits a report to 
                the Secretary describing the results of such 
                consultation; and
                    (C) the Secretary approves the significant 
                amendment or change.
    (c) Right To Return.--The Secretary may not approve a 
transformation plan under this Act unless the plan provides that each 
resident of public or assisted housing displaced by activities under 
the transformation plan who wishes to return to the on-site or off-site 
replacement housing provided under the plan may return if the 
resident--
            (1) was in compliance with the lease at the time of 
        departure from the housing subject to rehabilitation or 
        demolition; and
            (2) would be eligible, as of the time of such return, for 
        occupancy under the eligibility, screening, and occupancy 
        standards, policies, or practices applicable to the housing 
        from which the resident was displaced, as in effect at such 
        time of displacement.
    (d) Relocation, Notice, Application for Vouchers, and Data.--All 
relocation activities resulting from, or that will result from, 
demolition, disposition, or both demolition and disposition, to be 
carried out under a transformation plan relating to a grant under this 
Act shall be subject to the following requirements:
            (1) Uniform relocation and real property acquisition act.--
        The Uniform Relocation and Real Property Acquisition Policies 
        Act of 1970 (42 U.S.C. 4601 et seq.) shall apply. To the extent 
        the provisions of this subsection and such Act conflict, the 
        provisions that provide greater protection to residents 
        displaced by the demolition, disposition, or demolition and 
        disposition, shall apply.
            (2) Relocation plan.--The applicant shall submit to the 
        Secretary, together with the application for a grant under this 
        Act, a relocation plan providing for the relocation of 
        residents occupying the public or assisted housing for which 
        the demolition or disposition is proposed, which shall 
        include--
                    (A) a statement of the estimated number of vouchers 
                for rental assistance under section 7 that will be 
                needed for such relocation;
                    (B) identification of the location of the 
                replacement dwelling units that will be made available 
                for permanent occupancy; and
                    (C) a statement of whether any temporary, off-site 
                relocation of any residents is necessary and a 
                description of the plans for such relocation.
            (3) Notice upon approval of application.--Within a 
        reasonable time after notice to the applicant of the approval 
        of an application for a grant under this section, the applicant 
        shall provide notice in writing, in plain and non-technical 
        language, to the residents of the public and assisted housing 
        subject to the approved transformation plan that--
                    (A) states that the application and transformation 
                plan has been approved;
                    (B) describes the process involved to relocate the 
                residents, including a statement that the residents may 
                not be relocated until the conditions set forth in 
                section 9 have been met;
                    (C) provides information regarding relocation 
                options; and
                    (D) advises residents of the availability of 
                relocation counseling as required in paragraph (7).
            (4) Notice before relocation.--Except in cases of a 
        substantial and imminent threat to health or safety, not later 
        than 90 days before the date on which residents will be 
        relocated, the grantee shall provide notice in writing, in 
        plain and non-technical language, to each family residing in a 
        public or assisted housing project that is subject to an 
        approved transformation plan, and in accordance with such 
        guidelines as the Secretary may issue governing such 
        notifications, that--
                    (A) the public or assisted housing project will be 
                demolished or disposed of;
                    (B) the demolition of the building in which the 
                family resides will not commence until each resident of 
                the building is relocated; and
                    (C) if temporary, off-site relocation is necessary, 
                each family displaced by such action shall be offered 
                comparable housing--
                            (i) that meets housing quality standards;
                            (ii) that is located in an area that is 
                        generally not less desirable than the location 
                        of the displaced family's housing, which shall 
                        include at least one unit located in an area of 
                        low poverty or one unit located within the 
                        neighborhood of the original public or assisted 
                        housing site;
                            (iii) that is identified and available to 
                        the family; and
                            (iv) which shall include--
                                    (I) tenant-based assistance, except 
                                that the requirement under this 
                                subparagraph regarding offering of 
                                comparable housing shall be fulfilled 
                                by use of tenant-based assistance only 
                                upon the relocation of the family into 
                                such housing;
                                    (II) project-based assistance;
                                    (III) occupancy in a unit operated 
                                or assisted by the public housing 
                                agency or the owner of the assisted 
                                project demolished or disposed of under 
                                this section, at a rental rate paid by 
                                the family that is comparable to the 
                                rental rate applicable to the unit from 
                                which the family is relocated; or
                                    (IV) other comparable housing.
            (5) Search period.--Notwithstanding any other provision of 
        law, in the case of a household that is provided tenant-based 
        assistance for relocation of the household under this section, 
        the period during which the household may lease a dwelling unit 
        using such assistance shall not be shorter in duration than the 
        150-day period that begins at the time a comparable replacement 
        unit is made available to the family. If the household is 
        unable to lease a dwelling unit using such assistance during 
        such period, the grantee shall extend the period during which 
        the household may lease a dwelling unit using such assistance, 
        or at the resident's request, shall provide the resident with 
        the next available comparable public housing unit or comparable 
        housing unit for which project-based assistance is provided.
            (6) Payment of relocation expenses.--The grantee shall 
        provide for the payment of the actual and reasonable relocation 
        expenses, including security deposits, of each resident to be 
        displaced and any other relocation expenses as are required by 
        the Uniform Relocation Assistance and Real Property Acquisition 
        Policies Act of 1970.
            (7) Comprehensive relocation counseling.--The grantee shall 
        provide all advisory programs and services as required by the 
        Uniform Relocation Assistance and Real Property Acquisition 
        Policies Act of 1970 and counseling for residents who are 
        displaced that shall fully inform residents to be displaced of 
        all relocation options, which may include relocating to housing 
        in a neighborhood with a lower concentration of poverty than 
        their current residence, a neighborhood where relocation will 
        not increase racial segregation, or remaining in the current 
        neighborhood. Such counseling shall also include providing 
        school options for children and comprehensive housing search 
        assistance for households that receive a voucher for tenant-
        based assistance.
            (8) Timing of demolition or disposition.--The grantee shall 
        not commence demolition or complete disposition of a building 
        subject to the approved transformation plan until all residents 
        residing in the building are relocated.
            (9) Timing of relocation.--The applicant shall not commence 
        relocation before approval by the Secretary of the 
        transformation plan providing for the demolition or 
        disposition, unless the applicant generally relocates residents 
        in accordance with this section, as determined by the 
        Secretary, except in the case of a substantial and imminent 
        threat to health or safety.
    (e) Monitoring of Displaced Households.--
            (1) Grantee responsibilities.--To facilitate compliance 
        with the requirement under subsection (a) (relating to right of 
        residents to return), the Secretary shall, by regulation, 
        require each grantee of a grant under this section, during the 
        period of the transformation plan assisted with the grant and 
        until all funding under the grant has been expended--
                    (A) to maintain a current address of residence and 
                contact information for each household affected by the 
                transformation plan who was occupying a dwelling unit 
                in the housing that is subject to the plan; and
                    (B) to provide such updated information to the 
                Secretary on at least a quarterly basis.
            (2) Certification.--The Secretary may not close out any 
        grant made under this section before the grantee has certified 
        to the Secretary that the agency has complied with subsection 
        (a) (relating to right of residents to return) with respect to 
        each resident displaced as a result of the transformation plan, 
        including providing occupancy in a replacement dwelling unit 
        for each resident who requested such a unit in accordance with 
        such subsection.
    (f) Preference.--A returning resident shall be provided a 
preference for occupancy of on-site or off-site replacement units 
before such units are made available for occupancy by any other 
eligible households, or the resident may choose to retain tenant-based 
voucher assistance provided under section 8(o) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(o)) for relocation from the 
properties revitalized under a transformation plan assisted with a 
grant under this Act.
    (g) Prohibition on Re-Screening.--A public housing agency or any 
other manager of on-site or off-site replacement housing shall not, 
through the application of any additional eligibility, screening, 
occupancy, or other policy or practice, prevent any person otherwise 
eligible under subsection (a) from occupying a replacement housing 
unit.

SEC. 8. ONE-FOR-ONE REPLACEMENT OF PUBLIC AND ASSISTED HOUSING DWELLING 
              UNITS.

    (a) One-for-One Replacement of Public or Assisted Housing Units.--
The Secretary may not approve a transformation plan that provides for 
dwelling units to be demolished or disposed of unless the plan provides 
as follows:
            (1) Requirement to replace each unit.--One-hundred percent 
        of the public and assisted housing dwelling units and units 
        described in section 15(1)(E) that are demolished or disposed 
        of pursuant to the transformation plan shall be replaced with a 
        newly constructed, rehabilitated, or purchased public or 
        assisted housing unit or with a newly constructed, 
        rehabilitated, or purchased unit (including through project-
        based assistance) that is subject to requirements regarding 
        eligibility for occupancy, tenant contribution toward rent, and 
        long-term affordability restrictions that are consistent with 
        such requirements for public and assisted housing dwelling 
        units or for State units, as applicable, except that 
        subparagraphs (B) and (D) of section 8(o)(13) of the United 
        States Housing Act of 1936 (relating to percentage limitation 
        and income mixing requirement of project-based assistance) 
        shall not apply with respect to vouchers used to comply with 
        the requirements of this paragraph.
            (2) Other requirements.--Admission to, administration of, 
        and eviction from replacement housing units that replaced 
        public housing units, but that are not public housing dwelling 
        units, shall be subject to the following provisions to the same 
        extent as public housing dwelling units:
                    (A) Section 578 of the Quality Housing and Work 
                Responsibility Act of 1998 (42 U.S.C. 13663; relating 
                to ineligibility of dangerous sex offenders).
                    (B) Section 16(f) of the United States Housing Act 
                of 1937 (42 U.S.C. 1437n(f); relating to ineligibility 
                of certain drug offenders).
                    (C) Sections 20 and 21 of the United States Housing 
                Act of 1937 (42 U.S.C. 1437r, 1437s; relating to 
                resident management).
                    (D) Section 25 of the United States Housing Act of 
                1937 (42 U.S.C. 1437w; relating to transfer of 
                management at request of residents).
                    (E) Section 6(k) of the United States Housing Act 
                of 1937 (42 U.S.C. 1437d(k); relating to administrative 
                grievance procedure).
                    (F) Section 6(f) of the United States Housing Act 
                of 1937 (42 U.S.C. 1437d(f); relating to housing 
                quality requirements).
                    (G) Part 964 of title 24, Code of Federal 
                regulations (relating to tenant participation and 
                opportunities).
            (3) Retention of rights.--Tenants occupying a replacement 
        housing unit shall have all rights provided to tenants of the 
        housing from which the tenants were relocated.
            (4) Size.--
                    (A) In general.--Replacement units shall be of 
                comparable size, unless a market analysis shows a need 
                for other-sized units, in which case such need shall be 
                addressed.
                    (B) Bedrooms.--The number of bedrooms within each 
                replacement unit shall be sufficient to serve families 
                displaced as a result of the demolition or disposition.
            (5) Location on site.--At least one-third of all 
        replacement units for public and assisted housing units 
        demolished shall be public or assisted housing units 
        constructed within the immediate area of the original public or 
        assisted housing location, unless the Secretary determines 
        that--
                    (A) construction on such location would result in 
                the violation of a consent decree; or
                    (B) the land on which the public and assisted 
                housing is located is environmentally unsafe or 
                geologically unstable.
            (6) Location in the neighborhood.--Any replacement housing 
        units provided in addition to dwelling units provided pursuant 
        to paragraph (5) shall--
                    (A) be provided in areas within the neighborhood, 
                except that if rebuilding the units within the 
                neighborhood is not feasible, units shall be provided 
                within the jurisdiction of the public housing agency--
                            (i) in a manner that furthers the economic 
                        and educational opportunities for residents; 
                        and
                            (ii) in areas offering access to public 
                        transportation; and
                    (B) have access to social, recreational, 
                educational, commercial, and health facilities and 
                services, including municipal services and facilities, 
                that are comparable to services provided to the 
                revitalized neighborhood from which residents were 
                displaced.
            (7) Location outside of jurisdiction.--If rebuilding 
        replacement housing units within the jurisdiction, in a manner 
        that complies with the requirements of clauses (i) through (iv) 
        of subparagraph (A) and subparagraph (B) of paragraph (6) is 
        not feasible, units may be provided outside of the jurisdiction 
        of the public housing agency, but within the metropolitan area 
        of such jurisdiction, provided the grantee requests, and the 
        public housing agency or unit of local government in which such 
        units shall be located, agrees to such transfer of units. All 
        such units shall comply with the requirements of clauses (i) 
        through (iv) of subparagraph (A) and subparagraph (B) of 
        paragraph (6).
    (b) Waiver.--
            (1) Authority.--Upon the written request of an applicant 
        for a grant under this Act submitted as part of the 
        transformation plan pursuant to section 6, the Secretary may 
        reduce the percentage applicable under subsection (a)(1) to the 
        transformation plan of the applicant to not less than 90 
        percent, but only if--
                    (A) a judgment, consent decree, or other order of a 
                court limits the ability of the applicant to comply 
                with such requirements; or
                    (B) the applicant demonstrates that there is an 
                excess supply of affordable rental housing in areas of 
                low poverty and provides data showing that, in the area 
                surrounding the revitalized neighborhood--
                            (i) at least 90 percent of vouchers issued 
                        under section 8(o) of the United States Housing 
                        Act of 1937 over the last 24 months to 
                        comparable families were successfully used to 
                        lease a dwelling unit within 120 days of 
                        issuance or, if a sufficient number of 
                        comparable families have not received vouchers, 
                        an alternative measure, as the Secretary shall 
                        design, is met;
                            (ii) existing voucher holders are widely 
                        dispersed geographically in areas of low 
                        poverty with access to public transportation, 
                        education, and other amenities, as determined 
                        by the Secretary, among the available private 
                        rental housing stock; and
                            (iii) the applicant provides a market 
                        analysis demonstrating that--
                                    (I) there is a relatively high 
                                vacancy rate among units that would 
                                meet or exceed housing quality 
                                standards, as determined by the 
                                Secretary, within the market area with 
                                rent and utility costs not exceeding 
                                the applicable payment standard under 
                                section 8(o) of the United States 
                                Housing Act of 1937 (42 U.S.C. 
                                1437f(o)); and
                                    (II) such high vacancy rate within 
                                the market area is expected to continue 
                                for the next 5 years or longer.

SEC. 9. OTHER PROGRAM REQUIREMENTS.

    (a) Fair Housing.--The demolition or disposition, relocation, 
replacement, and re-occupancy of housing units in connection with a 
grant under this Act shall be carried out in a manner that 
affirmatively furthers fair housing, as required by section 808 of the 
Civil Rights Act of 1968 (42 U.S.C. 3608(e)). Grantees shall adopt 
affirmative marketing procedures, and require affirmative marketing 
activities of project owners and managers. Such special outreach 
efforts shall be targeted to those who are least likely to apply for 
the housing, to ensure that all persons regardless of their race, 
color, national origin, religion, sex, disability, or familial status 
are aware of the housing opportunities in each project funded with a 
grant under this Act.
    (b) Accessibility Requirements.--All new construction and 
alterations of existing buildings carried out in connection with a 
grant under this Act shall comply with the requirements of the section 
504 of Rehabilitation Act of 1973 (29 U.S.C. 794), the Accessibility 
Standards for Design, Construction, and Alteration of Publicly Owned 
Residential Structures of the Department of Housing and Urban 
Development (24 C.F.R. part 40), the Fair Housing Act (42 U.S.C. 3601 
et seq.), and any other requirements as determined by the Secretary.
    (c) Affordability Requirement.--Amounts from a grant under this Act 
may not be used for assistance for any housing property unless the 
owner of the property assisted agrees to a period of affordability for 
the property which shall be not shorter than the period of 
affordability to which the property is already subject and remains 
subject, or 20 years, whichever is longer.
    (d) Cost Limits.--Subject to the provisions of this Act, the 
Secretary shall establish cost limits on eligible activities under this 
Act sufficient to provide for effective transformation programs.
    (e) Environmental Review.--For purposes of environmental review, 
assistance and projects under this Act shall be treated as assistance 
for special projects that are subject to section 305(c) of the 
Multifamily Housing Property Disposition Reform Act of 1994 (42 U.S.C. 
3547), and shall be subject to the regulations issued by the Secretary 
to implement such section.
    (f) Grantee Reporting.--The Secretary shall require grantees under 
this Act to report the sources and uses of all amounts expended and 
other information for transformation plans for the Secretary's annual 
report to Congress or other purposes as determined by the Secretary.

SEC. 10. DEMOLITION AND DISPOSITION.

    (a) Inapplicability of Public Housing Demolition and Disposition 
Requirements to Transformation Plan.--The demolition or disposition of 
severely distressed public housing pursuant to a transformation plan 
approved under this Act shall be exempt from the provisions of section 
18 of the United States Housing Act of 1937 (42 U.S.C. 1437p).
    (b) Applicability of Public Housing Demolition and Disposition 
Requirements to Replacement Public Housing.--Nothing in this Act may be 
construed to exempt any replacement public housing dwelling units 
provided under a transformation plan in accordance with the 
requirements under section 8 (relating to one-for-one replacement of 
public housing dwelling units) from the provisions of section 18 of the 
United States Housing Act of 1937.

SEC. 11. PHASE-SPECIFIC UNDERWRITING.

    To the extent that a transformation plan provides for different 
phases of activities, the Secretary may allow for the various phases of 
such plan to be underwritten on a separate basis.

SEC. 12. ADMINISTRATION BY OTHER ENTITIES.

    The Secretary may require a grantee under this Act to make 
arrangements satisfactory to the Secretary for use of an entity other 
than the original grantee to carry out activities assisted under the 
transformation plan of the grantee, if--
            (1) the original grantee has failed to meet performance 
        benchmarks relating to implementation of the transformation 
        plan; and
            (2) the Secretary determines that such action will help to 
        effectuate the purposes of this Act.

SEC. 13. WITHDRAWAL OF FUNDING.

    If a grantee under this Act does not proceed within a reasonable 
timeframe in implementing its transformation plan or does not otherwise 
comply with the requirements of this Act and the grant agreement, as 
determined by the Secretary, the Secretary may withdraw any grant 
amounts under this Act that have not been obligated by the grantee. The 
Secretary may redistribute any withdrawn amounts to one or more other 
eligible entities capable of proceeding expeditiously in the same 
locality in carrying out the transformation plan of the original 
grantee, or as such plan may be modified and approved by the Secretary, 
or, if that is not feasible, to one or more other applicants that has 
already received assistance under this Act.

SEC. 14. ANNUAL REPORT; PUBLIC AVAILABILITY OF GRANT INFORMATION.

    (a) Annual Report.--Not less than 90 days before the conclusion of 
each fiscal year, the Secretary shall submit to Committee on Financial 
Services of the House of Representatives and the Committee on Banking, 
Housing, and Urban Affairs of the Senate a report on the implementation 
and status of grants awarded under this Act, which shall include--
            (1) the number, type, and cost of affordable housing units 
        revitalized pursuant to this Act;
            (2) the amount and type of financial assistance provided 
        under and in conjunction with this Act, including a 
        specification of the amount and type of assistance provided for 
        educational opportunities, services, public assets, public 
        transportation, and access to jobs;
            (3) the impact of grants made under this Act on the 
        original residents, the target neighborhoods, and the larger 
        communities within which they are located;
            (4) all information submitted to the Secretary pursuant to 
        section 7(e)(1) by all grantees and summaries of the extent of 
        compliance by grantees with the requirements under subsections 
        (a) and (g) of section 7; and
            (5) any information related to grantees implementation of 
        the requirements under section 8 (relating to one-for-one 
        replacement of public housing dwelling units) and the efforts 
        of the Secretary to coordinate funding pursuant to section 
        5(e)(3).
    (b) Public Availability of Grant Information.--To the extent not 
inconsistent with any other provisions of law, the Secretary shall make 
publicly available through a World Wide Website of the Department of 
Housing and Urban Development all documents of, or filed with, the 
Department relating to the program under this Act, including 
applications, grant agreements, plans, budgets, reports, and amendments 
to such documents; except that in carrying out this subsection, the 
Secretary shall take such actions as may be necessary to protect the 
privacy of any residents and households displaced from public or 
assisted housing as a result of a transformation plan assisted under a 
grant under this Act.

SEC. 15. DEFINITIONS.

    For purposes of this Act, the following definitions shall apply:
            (1) Affordable housing.--The term ``affordable housing'' 
        includes--
                    (A) public housing assisted under section 9 of the 
                United States Housing Act of 1937 (42 U.S.C. 1437g);
                    (B) assisted housing (as such term is defined in 
                this section);
                    (C) housing assisted under an affordable housing 
                program administered by the Secretary of Agriculture 
                through Rural Housing Service;
                    (D) rental housing that utilizes tax credits under 
                section 42 or the Internal Revenue Code of 1986;
                    (E) affordable rental housing owned, developed, or 
                assisted through a State or unit of local government or 
                State housing finance agency, including State-assisted 
                public housing, which is subject to a long-term 
                affordability restriction requiring occupancy by low-
                income households; and
                    (F) private housing for low- and moderate-income 
                households and for which the Secretary requires the 
                owner or purchaser of the project to maintain 
                affordability for no fewer than 20 years in accordance 
                with use restrictions under regulations issued by the 
                Secretary, which restrictions shall be--
                            (i) contained in a legally enforceable 
                        document recorded in the appropriate records; 
                        and
                            (ii) consistent with the long-term 
                        viability of the project as rental or 
                        homeownership housing.
            (2) Applicant.--The term ``applicant'' means an eligible 
        entity under section 3(a) that submits an application for a 
        grant under this Act pursuant to section 6.
            (3) Assisted housing.--The term ``assisted housing'' means 
        rental housing assisted under--
                    (A) section 8 of the United States Housing Act of 
                1937 (42 U.S.C. 1437f, 1437g);
                    (B) section 221(d)(3) or 236 of the National 
                Housing Act (12 U.S.C. 1715l, 1715z-1);
                    (C) section 202 of the Housing Act of 1959 (12 
                U.S.C. 1701q); or
                    (D) section 811 of Cranston-Gonzalez National 
                Affordable Housing Act (42 U.S.C. 8013).
            (4) Critical community improvements.--The term ``critical 
        community improvements'' means--
                    (A) development or improvement of community 
                facilities to promote upward mobility, self-
                sufficiency, or improved quality of life for residents 
                of the neighborhood, such as construction or 
                rehabilitation of parks and community gardens, 
                environmental improvements, or site remediation at 
                affected sites; or
                    (B) activities to promote economic development, 
                such as development or improvement of transit, retail, 
                community financial institutions, public services, 
                facilities, assets, or other community resources.
            (5) Extreme poverty.--The term ``extreme poverty'' means, 
        with respect to a neighborhood, that the neighborhood--
                    (A) has a high percentage of residents who are--
                            (i) estimated to be in poverty; or
                            (ii) have extremely low incomes based on 
                        the most recent data collected by the United 
                        States Census Bureau; and
                    (B) is experiencing distress related to one or more 
                of the following:
                            (i) Per capita crime rates over 3 or more 
                        years that are significantly higher than the 
                        per capita crime rates of the city or county in 
                        which the neighborhood is located.
                            (ii) High rates of vacant, abandoned, or 
                        substandard homes relative to the city or 
                        county as a whole.
                            (iii) A low-performing public school.
                            (iv) Other such factors as determined by 
                        the Secretary that further the purposes of this 
                        Act.
            (6) Families.--The term ``families'' has the meaning given 
        such term in section 3(b) of the United States Housing Act of 
        1937 (42 U.S.C. 1437a(b)).
            (7) Grantee.--The term ``grantee'' means an eligible entity 
        under section 3 that is awarded a grant under this Act, 
        pursuant to selection under section 6.
            (8) Local government.--The term ``local government'' has 
        the meaning given the term ``unit of general local government'' 
        in section 102(a)(1) of the Housing and Community Development 
        Act of 1974 (42 U.S.C. 5302).
            (9) Long-term viability.--The term ``long-term viability'' 
        means, with respect to a neighborhood, that the neighborhood is 
        sustainable on an economic, education, and environmental basis.
            (10) Neighborhood.--The term ``neighborhood'' means an area 
        that--
                    (A) has distinguishing characteristics;
                    (B) represents the geographical distribution of 
                targeted populations; and
                    (C) is not exclusive of areas that are integrally 
                related to the composition of the community.
            (11) Public housing; public housing agency.--The terms 
        ``public housing'' and ``public housing agency'' have the 
        meanings given such terms in section 3(b) of the United States 
        Housing Act of 1937 (42 U.S.C. 1437a(b)).
            (12) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
            (13) Severely distressed housing.--The term ``severely 
        distressed housing'' means a public or assisted housing project 
        (or building in a project) that--
                    (A)(i) has been certified, by an engineer or 
                architect licensed by a State licensing board, as 
                meeting criteria for physical distress that indicate 
                that the project requires major redesign, 
                reconstruction, or redevelopment, or partial or total 
                demolition, to correct serious deficiencies in the 
                original design (including inappropriately high-
                population density), deferred maintenance, physical 
                deterioration or obsolescence of major systems, and 
                other deficiencies in the physical plant of the 
                project; and
                    (ii) is a significant contributing factor to the 
                physical decline of and disinvestment by public and 
                private entities in the surrounding neighborhood, as 
                documented by evidence of non-physical distress, such 
                as extreme poverty, including census data and past 
                surveys of neighborhood stability conducted by an 
                applicant or co-applicant or their qualified designee; 
                or
                    (B) was a project described in subparagraph (A) 
                that has been legally vacated or demolished, but for 
                which the Secretary has not yet provided replacement 
                housing assistance other than tenant-based assistance.
            (14) Significant amendment or change.--The term 
        ``significant'' means, with respect to an amendment or change 
        to a transformation plan, that the amendment or change--
                    (A) changes the use of 20 percent or more of the 
                total amount of the grant provided under this Act from 
                use for one activity to use for another;
                    (B) eliminates an activity that is a required 
                activity that, notwithstanding the change, would 
                otherwise be carried out under the plan; or
                    (C) significantly changes the scope, location, or 
                beneficiaries of the project carried out under the 
                plan.
            (15) Supportive services.--The term ``supportive services'' 
        includes all activities that will promote upward mobility, 
        self-sufficiency, or improved quality of life, including--
                    (A) such activities as literacy training, remedial 
                and continuing education, job training, financial 
                literacy instruction, daycare, youth services, aging-
                in-place, physical and mental health services, and 
                other programs for which such residents demonstrate 
                need;
                    (B) case management and service coordination 
                services, including providing coordinators for the 
                Family Self-Sufficiency program under section 23 of the 
                United States Housing Act of 1937 (42 U.S.C. 1437u) and 
                the Resident Opportunity and Supportive Services 
                program under section 34 of such Act (42 U.S.C. 1437z-
                6); and
                    (C) technical assistance to enable residents to 
                access programs from other key agencies and local 
                service providers in order to help residents be stably 
                housed, improve outcomes for children, and enhance 
                adults' capacity for self-sufficiency and economic 
                security, and services for the elderly and persons with 
                disabilities to maintain independence.

SEC. 16. FUNDING.

    There are authorized to be appropriated the following amounts:
            (1) Grants.--$1,000,000,000 for fiscal year 2022 and such 
        sums as may be necessary in each subsequent fiscal year, for 
        grants under this Act, of which, in any fiscal year--
                    (A) up to 10 percent of such amount authorized may 
                be used for planning grants, except that in awarding 
                planning grants, the Secretary may elect to base 
                selection on a subset of the required provisions of 
                this Act;
                    (B) up to 5 percent of the amount authorized may be 
                used for technical assistance and program evaluation 
                efforts related to grants awarded under this Act, or 
                under predecessor programs; and
                    (C) not less than 80 percent shall be used for, or 
                80 percent of the number of housing units assisted 
                under this Act shall be, public housing units, subject 
                to de minimis variations as may result from the grantee 
                selection process.
            (2) Rental assistance.--Such sums as may be necessary for 
        fiscal year 2022 and each subsequent fiscal year for providing 
        tenant-based assistance for relocation and for rental 
        assistance under section 8 of the United States Housing Act of 
        1937 for the purposes of complying with section 7(c) of this 
        Act, but not to exceed the amount of assistance for the number 
        of units demolished or disposed of under section 7(c)(1).

SEC. 17. REGULATIONS.

    Not later than the expiration of the 180-day period beginning on 
the date of the enactment of this Act, the Secretary shall issue 
regulations to carry out the following provisions of this Act:
            (1) Subsections (c) and (e) of section 5.
            (2) Section 8(b).
            (3) Paragraphs (4), (5), (9), (10), and (13) of section 15.
                                 <all>
Choice Neighborhoods Initiative Act of 2021
To authorize the Department of Housing and Urban Development to transform neighborhoods of extreme poverty into sustainable, mixed-income neighborhoods with access to economic opportunities, by revitalizing severely distressed housing, and investing and leveraging investments in well-functioning services, educational opportunities, public assets, public transportation, and improved access to jobs, and for other purposes.
Choice Neighborhoods Initiative Act of 2021
Rep. Cleaver, Emanuel