TITLE V--RESTRICTIONS ON BENEFITS FOR ALIENS

Subtitle E--Housing Assistance

SEC. 571. SHORT TITLE.

This subtitle may be cited as the ``Use of Assisted Housing
by Aliens Act of 1996''.

SEC. 572. PRORATING OF FINANCIAL ASSISTANCE.

Section 214(b) of the Housing and Community Development Act
of 1980 (42 U.S.C. 1436a(b)) is amended--
(1) by inserting ``(1)'' after ``(b)''; and
(2) by adding at the end the following new paragraph:
``(2) If the eligibility for financial assistance of at
least one member of a family has been affirmatively
established under the program of financial assistance and
under this section, and the ineligibility of one or more
family members has not been affirmatively established under
this section, any financial assistance made available to that
family by the Secretary of Housing and Urban Development
shall be prorated, based on the number of individuals in the
family for whom eligibility has been affirmatively
established under the program of financial assistance and
under this section, as compared with the total number of
individuals who are members of the family.''.

SEC. 573. ACTIONS IN CASES OF TERMINATION OF FINANCIAL
ASSISTANCE.

Section 214(c)(1) of the Housing and Community Development
Act of 1980 (42 U.S.C. 1436a(c)(1)) is amended--
(1) in the matter preceding subparagraph (A), by striking
``may, in its discretion,'' and inserting ``shall'';
(2) in subparagraph (A), by adding at the end the
following: ``Financial assistance continued under this
subparagraph for a family may be provided only on a prorated
basis, under which the amount of financial assistance is
based on the percentage of the total number of members of the
family that are eligible for that assistance under the
program of financial assistance and under this section.'';
and
(3) in subparagraph (B)--
(A) by striking ``3 years'' and inserting ``18-months'';
(B) by inserting ``(i)'' after ``(B)'';
(C) by striking ``Any deferral'' and inserting the
following:
``(ii) Except as provided in clause (iii), any deferral'';
and
(D) by adding at the end the following new clauses:
``(iii) The time period described in clause (ii) shall not
apply in the case of a refugee under section 207 of the
Immigration and Nationality Act or an individual seeking
asylum under section 208 of that Act.''.

SEC. 574. VERIFICATION OF IMMIGRATION STATUS AND ELIGIBILITY
FOR FINANCIAL ASSISTANCE.

Section 214(d) of the Housing and Community Development Act
of 1980 (42 U.S.C. 1436a(d)) is amended--
(1) in the matter preceding paragraph (1), by inserting
``or to be'' after ``being'';
(2) in paragraph (1)(A), by adding at the end the
following: ``If the declaration states that the individual is
not a citizen or national of the United States and that the
individual is younger than 62 years of age, the declaration
shall be verified by the Immigration and Naturalization
Service. If the declaration states that the individual is a
citizen or national of the United States, the Secretary of
Housing and Urban Development, or the agency administering
assistance covered by this section, may request verification
of the declaration by requiring presentation of documentation
that the Secretary considers appropriate, including a United
States passport, resident alien card, alien registration
card, social security card, or other documentation.'';
(3) in paragraph (2)--
(A) in the matter preceding subparagraph (A), by striking
``on the date of the enactment of the Housing and Community
Development Act of 1987'' and inserting ``on the date of
enactment of the Use of Assisted Housing by Aliens Act of
1996 or applying for financial assistance on or after that
date''; and
(B) by adding at the end the following:
``In the case of an individual applying for financial
assistance on or after the date of enactment of the Use of
Assisted Housing by Aliens Act of 1996, the Secretary may not
provide any such assistance for the benefit of that
individual before documentation is presented and verified
under paragraph (3) or (4).'';
(4) in paragraph (4)--
(A) in the matter preceding subparagraph (A), by striking
``on the date of the enactment of the Housing and Community
Development Act of 1987'' and inserting ``on the date of
enactment of the Use of Assisted Housing by Aliens Act of
1996 or applying for financial assistance on or after that
date'';
(B) in subparagraph (A)--
(i) in clause (i)--

(I) by inserting ``, not to exceed 30 days,'' after
``reasonable opportunity''; and
(II) by striking ``and'' at the end; and

(ii) by striking clause (ii) and inserting the following:

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``(ii) in the case of any individual receiving assistance
on the date of enactment of the Use of Assisted Housing by
Aliens Act of 1996, may not delay, deny, reduce, or terminate
the eligibility of that individual for financial assistance
on the basis of the immigration status of that individual
until the expiration of that 30-day period; and
``(iii) in the case of any individual applying for
financial assistance on or after the date of enactment of the
Use of Assisted Housing by Aliens Act of 1996, may not deny
the application for such assistance on the basis of the
immigration status of that individual until the expiration of
that 30-day period; and''; and
(C) in subparagraph (B), by striking clause (ii) and
inserting the following:
``(ii) pending such verification or appeal, the Secretary
may not--

``(I) in the case of any individual receiving assistance on
the date of enactment of the Use of Assisted Housing by
Aliens Act of 1996, delay, deny, reduce, or terminate the
eligibility of that individual for financial assistance on
the basis of the immigration status of that individual; and
``(II) in the case of any individual applying for financial
assistance on or after the date of enactment of the Use of
Assisted Housing by Aliens Act of 1996, deny the application
for such assistance on the basis of the immigration status of
that individual; and'';

(5) in paragraph (5), by striking ``status--'' and all that
follows through the end of the paragraph and inserting the
following: ``status, the Secretary shall--
``(A) deny the application of that individual for financial
assistance or terminate the eligibility of that individual
for financial assistance, as applicable;
``(B) provide that the individual may request a fair
hearing during the 30-day period beginning upon receipt of
the notice under subparagraph (C); and
``(C) provide to the individual written notice of the
determination under this paragraph, the right to a fair
hearing process, and the time limitation for requesting a
hearing under subparagraph (C).''; and
(6) by striking paragraph (6) and inserting the following:
``(6) The Secretary shall terminate the eligibility for
financial assistance of an individual and the members of the
household of the individual, for a period of not less than 24
months, upon determining that such individual has knowingly
permitted another individual who is not eligible for such
assistance to reside in the public or assisted housing unit
of the individual. This provision shall not apply to a family
if the ineligibility of the ineligible individual at issue
was considered in calculating any proration of assistance
provided for the family.''.

SEC. 575. PROHIBITION OF SANCTIONS AGAINST ENTITIES MAKING
FINANCIAL ASSISTANCE ELIGIBILITY
DETERMINATIONS.

Section 214(e) of the Housing and Community Development Act
of 1980 (42 U.S.C. 1436a(e)) is amended--
(1) in paragraph (2), by adding ``or'' at the end;
(2) in paragraph (3), by adding at the end the following:
``the response from the Immigration and Naturalization
Service to the appeal of that individual.''; and
(3) by striking paragraph (4).

SEC. 576. ELIGIBILITY FOR PUBLIC AND ASSISTED HOUSING.

Section 214 of the Housing and Community Development Act of
1980 (42 U.S.C. 1436a) is amended by adding at the end the
following new subsection:
``(h) Verification of Eligibility.--
``(1) In general.--Except in the case of an election under
paragraph (2)(A), no individual or family applying for
financial assistance may receive such financial assistance
prior to the affirmative establishment and verification of
eligibility of at least the individual or one family member
under this section by the Secretary or other appropriate
entity.
``(2) Rules applicable to public housing agencies.--A
public housing agency (as that term is defined in section 3
of the United States Housing Act of 1937)--
``(A) may elect not to comply with this section; and
``(B) in complying with this section--
``(i) may initiate procedures to affirmatively establish or
verify the eligibility of an individual or family under this
section at any time at which the public housing agency
determines that such eligibility is in question, regardless
of whether or not that individual or family is at or near the
top of the waiting list of the public housing agency;
``(ii) may affirmatively establish or verify the
eligibility of an individual or family under this section in
accordance with the procedures set forth in section
274A(b)(1) of the Immigration and Nationality Act; and
``(iii) shall have access to any relevant information
contained in the SAVE system (or any successor thereto) that
relates to any individual or family applying for financial
assistance.
``(3) Eligibility of families.--For purposes of this
subsection, with respect to a family, the term `eligibility'
means the eligibility of each family member.''.

SEC. 577. REGULATIONS.

(a) Issuance.--Not later than the 60 days after the date of
enactment of this Act, the Secretary of Housing and Urban
Development shall issue any regulations necessary to
implement the amendments made by this part. Such regulations
shall be issued in the form of an interim final rule, which
shall take effect upon issuance and shall not be subject to
the provisions of section 533 of title 5, United States Code,
regarding notice or opportunity for comment.
(b) Failure To Issue.--If the Secretary fails to issue the
regulations required under subsection (a) before the date
specified in that subsection, the regulations relating to
restrictions on assistance to noncitizens, contained in the
final rule issued by the Secretary of Housing and Urban
Development in RIN-2501-AA63 (Docket No. R-95-1409; FR-2383-
F-050), published in the Federal Register on March 20, 1995
(Vol. 60, No. 53; pp. 14824-14861), shall not apply after
that date.