Limitations on tenancy for over-income families

(A) Limitations Except as provided in subparagraph (D), in the case of any family residing in a dwelling unit of public housing whose income for the most recent two consecutive years, as determined pursuant to income reviews conducted pursuant to section 1437a(a)(6) of this title , has exceeded the applicable income limitation under subparagraph (C), the public housing agency shall— (i) notwithstanding any other provision of this chapter, charge such family as monthly rent for the unit occupied by such family an amount equal to the greater of— (I) the applicable fair market rental established under section 1437f(c) of this title for a dwelling unit in the same market area of the same size; or (II) the amount of the monthly subsidy provided under this chapter for the dwelling unit, which shall include any amounts from the Operating Fund and Capital Fund under section 1437g of this title used for the unit, as determined by the agency in accordance with regulations that the Secretary shall issue to carry out this subclause; or (ii) terminate the tenancy of such family in public housing not later than 6 months after the income determination described in subparagraph (A).

(B) Notice In the case of any family residing in a dwelling unit of public housing whose income for a year has exceeded the applicable income limitation under subparagraph (C), upon the conclusion of such year the public housing agency shall provide written notice to such family of the requirements under subparagraph (A).

(C) Income limitation The income limitation under this subparagraph shall be 120 percent of the median income for the area, as determined by the Secretary with adjustments for smaller and larger families, except that the Secretary may establish income limitations higher or lower than 120 percent of such median income on the basis of the Secretary’s findings that such variations are necessary because of prevailing levels of construction costs, or unusually high or low family incomes, vacancy rates, or rental costs.

(D) Exception Subparagraph (A) shall not apply to a family occupying a dwelling unit in public housing pursuant to paragraph (5) of section 1437a(a) of this title .

(E) Reports on over-income families and waiting lists The Secretary shall require that each public housing agency shall— (i) submit a report annually, in a format required by the Secretary, that specifies— (I) the number of families residing, as of the end of the year for which the report is submitted, in public housing administered by the agency who had incomes exceeding the applicable income limitation under subparagraph (C); and (II) the number of families, as of the end of such year, on the waiting lists for admission to public housing projects of the agency; and (ii) make the information reported pursuant to clause (i) publicly available.