Tenants’ Right to Organize Act

#5087 | S Congress #118

Subjects:

Last Action: Read twice and referred to the Committee on Finance. (9/18/2024)

Bill Text Source: Congress.gov

Summary and Impacts
Original Text
[Congressional Bills 118th Congress]
[From the U.S. Government Publishing Office]
[S. 5087 Introduced in Senate (IS)]

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118th CONGRESS
  2d Session
                                S. 5087

     To amend the United States Housing Act of 1937 to promote the 
 establishment of tenant organizations and provide additional amounts 
           for tenant organizations, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           September 18, 2024

  Mr. Fetterman (for himself, Ms. Warren, Mr. Murphy, Mr. Wyden, Mr. 
Blumenthal, Mr. Sanders, and Ms. Smith) introduced the following bill; 
     which was read twice and referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
     To amend the United States Housing Act of 1937 to promote the 
 establishment of tenant organizations and provide additional amounts 
           for tenant organizations, 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 ``Tenants' Right to Organize Act''.

SEC. 2. HOUSING CHOICE VOUCHER TENANT ORGANIZATIONS.

    Section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 
1437f(o)) is amended by adding at the end the following:
            ``(23) Right to organize.--
                    ``(A) Definitions.--In this paragraph:
                            ``(i) Adverse action.--The term `adverse 
                        action' means an action, including the 
                        termination or non-renewal of a lease, 
                        termination of a subsidy, decreases or delays 
                        in services, unplanned increases of the rent or 
                        fees, bringing or threats to bring a lawsuit 
                        against a lessee for possession, a violation of 
                        tenant privacy, or harassment of a tenant and 
                        tenant organizers, that is motivated by the 
                        good-faith exercise of protected activities 
                        described in subparagraph (D).
                            ``(ii) Legitimate tenant organization.--The 
                        term `legitimate tenant organization'--
                                    ``(I) means an organization of 3 or 
                                more families receiving tenant-based 
                                rental assistance that--
                                            ``(aa) meets regularly and 
                                        operates democratically;
                                            ``(bb) is representative of 
                                        all residents in the 
                                        organization;
                                            ``(cc) is completely 
                                        independent of owners, 
                                        landlords, management, and 
                                        their representatives; and
                                            ``(dd) has been established 
                                        for the purpose described in 
                                        subparagraph (B); and
                                    ``(II) includes newly formed 
                                resident organizing committees, which 
                                do not require specific structures, 
                                written by-laws, elections, or resident 
                                petitions.
                            ``(iii) Owner.--The term `owner' means any 
                        private person or entity, including a landlord, 
                        a cooperative, an investor with an ownership 
                        share, an agency of the Federal Government, a 
                        State housing credit agency, or a public 
                        housing agency, who owns and has the legal 
                        right to lease or sublease the dwelling unit 
                        occupied by a tenant that receives rental 
                        assistance.
                            ``(iv) Tenant organizer.--The term `tenant 
                        organizer' means a tenant or nontenant who--
                                    ``(I) assists tenants in 
                                establishing and operating a legitimate 
                                tenant organization; and
                                    ``(II) is not an employee or 
                                representative of current or 
                                prospective owners, managers, or their 
                                agents.
                    ``(B) Right to organize.--Families receiving 
                voucher rental assistance--
                            ``(i) have the right to establish, operate, 
                        and participate in a legitimate tenant 
                        organization for the purpose of addressing 
                        issues related to their living environment, 
                        including the terms and conditions of their 
                        tenancy and activities related to housing and 
                        community development; and
                            ``(ii) may not be retaliated against for 
                        asserting the rights described in clause (i).
                    ``(C) Requirements for public housing agencies and 
                owners.--
                            ``(i) Prohibition on interference and 
                        retaliation.--Each public housing agency and 
                        each owner may not interfere with the right of 
                        tenants to establish and operate a legitimate 
                        tenant organization or retaliate against any 
                        tenant or tenant organizer because of their 
                        association with or participation in activities 
                        related to a legitimate tenant organization.
                            ``(ii) Public housing agencies.--Each 
                        public housing agency shall--
                                    ``(I) recognize legitimate tenant 
                                organizations;
                                    ``(II) solicit comments from all 
                                legitimate tenant organizations--
                                            ``(aa) if a public housing 
                                        agency is required to complete 
                                        an annual public housing agency 
                                        plan, in alignment with the 
                                        submission of that plan; or
                                            ``(bb) if a public housing 
                                        agency is a qualified public 
                                        housing agency, as described in 
                                        section 5A(b)(3)(A)(i), not 
                                        less than once a year;
                                    ``(III) after receiving a comment 
                                from a legitimate tenant organization--
                                            ``(aa) except as provided 
                                        in item (bb), not later than 60 
                                        days after receiving the 
                                        comment, meaningfully respond 
                                        in writing to the comment; and
                                            ``(bb) regarding exigent 
                                        poor housing conditions, not 
                                        later than 30 days after 
                                        receiving the comment, respond 
                                        in writing to the comment; and
                                    ``(IV) seek resident advisory board 
                                appointments from legitimate tenant 
                                organizations.
                            ``(iii) Owners of units.--Each owner 
                        shall--
                                    ``(I) recognize legitimate tenant 
                                organizations; and
                                    ``(II) allow tenant organizers to 
                                assist tenants in establishing and 
                                operating legitimate tenant 
                                organizations.
                    ``(D) Protections.--
                            ``(i) Protected activities.--Each public 
                        housing agency and each owner shall allow 
                        tenants and tenant organizers to conduct the 
                        following activities related to the 
                        establishment or operation of a legitimate 
                        tenant organization:
                                    ``(I) Distributing leaflets in 
                                lobby areas.
                                    ``(II) Placing leaflets at or under 
                                tenants' doors.
                                    ``(III) Distributing leaflets in 
                                common areas.
                                    ``(IV) Initiating contact with 
                                tenants.
                                    ``(V) Conducting door-to-door 
                                surveys of tenants to ascertain 
                                interest in establishing a legitimate 
                                tenant organization and to offer 
                                information about legitimate tenant 
                                organizations.
                                    ``(VI) Posting information on 
                                bulletin boards.
                                    ``(VII) Assisting tenants to 
                                participate in legitimate tenant 
                                organization activities.
                                    ``(VIII) Convening regularly 
                                scheduled meetings in a space on site 
                                and accessible to tenants, in a manner 
                                that is fully independent of management 
                                representatives. In order to preserve 
                                the independence of legitimate tenant 
                                organizations, public housing agency 
                                staff, owners, landlords, management 
                                and their representatives may not 
                                attend such meetings unless invited by 
                                the legitimate tenant organization to 
                                specific meetings to discuss a specific 
                                issue or issues.
                                    ``(IX) Assisting tenants in 
                                creating or appointing tenants to serve 
                                on a resident advisory board or 
                                resident council.
                                    ``(X) Speaking to the public, 
                                including the media, elected officials, 
                                and government agencies.
                                    ``(XI) Other reasonable activities 
                                related to the establishment or 
                                operation of a legitimate tenant 
                                organization.
                            ``(ii) Permission.--A public housing agency 
                        or owner may not require tenants or tenant 
                        organizers to obtain prior permission before 
                        engaging in the activities permitted under this 
                        paragraph.
                            ``(iii) Presumption.--If a public housing 
                        agency or owner takes an adverse action against 
                        a tenant or tenant organizer that is a member 
                        of a legitimate tenant organization during the 
                        180-day period beginning on the date on which 
                        the tenant engages in a protected activity 
                        under this subparagraph, there shall be a 
                        rebuttable presumption that the adverse action 
                        is an act of retaliation relating to the 
                        participation of the tenant in the legitimate 
                        tenant organization.
                    ``(E) Notice of right to organize.--
                            ``(i) Owners.--Each owner shall notify 
                        shall notify each tenant living at a qualified 
                        low-income housing project of the right to 
                        organize as described in this paragraph 
                        annually.
                            ``(ii) Tenancy addendum.--The Secretary 
                        shall require each public housing agency to 
                        amend the lease addendum to include the right 
                        to organize provider for in this paragraph.
                    ``(F) Authorization of appropriations.--There are 
                authorized to be appropriated to the Secretary such 
                sums as are necessary to carry out this paragraph.''.

SEC. 3. LIHTC TENANT ORGANIZATIONS.

    (a) In General.--Section 42(g) of the Internal Revenue Code of 1986 
is amended by adding at the end the following new paragraph:
            ``(10) LIHTC tenant organizations.--
                    ``(A) Rights of tenants.--In the case of any 
                qualified low-income housing project which is an 
                applicable project, families occupying rent-restricted 
                units in such project shall have the same right as 
                families described in section 8(o)(23)(B)(i) of the 
                United States Housing Act of 1937.
                    ``(B) Responsibilities of owners and state housing 
                credit agencies.--In the case of any applicable 
                project, such project shall not be treated as a 
                qualified low-income housing project for purposes of 
                this section unless--
                            ``(i) each owner of such project meets 
                        requirements which are the same as the 
                        requirements of clauses (i) and (iii) of 
                        subparagraph (C) and subparagraph (D) of 
                        section 8(o)(23) of the United States Housing 
                        Act of 1937, and
                            ``(ii) each State housing credit agency 
                        meets requirements which are the same as the 
                        requirements of clauses (i) and (ii) of 
                        subparagraph (C) and subparagraph (D) of such 
                        section.
                    ``(C) Applicable project.--For purposes of this 
                paragraph, the term `applicable project' means--
                            ``(i) any project which is placed in 
                        service after the date of enactment of the 
                        Tenants' Right to Organize Act, and
                            ``(ii) any project--
                                    ``(I) which was placed in service 
                                on or before the date of enactment of 
                                such Act, and
                                    ``(II) for which the date of 
                                enactment of such Act occurred before 
                                the end of the compliance period for 
                                such project.
                    ``(D) Notice of right to organize.--
                            ``(i) In general.--Each State housing 
                        credit agency shall notify each tenant living 
                        at a qualified low-income housing project of 
                        the right to organize as described in paragraph 
                        10 annually.
                            ``(ii) Tenancy addendum.--The Secretary 
                        shall require each State housing credit 
                        agency--
                                    ``(I) that has implemented a 
                                standard lease, lease addendum, or 
                                other guidance to owners of a qualified 
                                low-income housing project, to amend 
                                that document to include language 
                                affirming lessees' right to organize 
                                provided for in this paragraph; or
                                    ``(II) that performs lease-based 
                                evaluations of low income-housing tax 
                                credit compliance to include in that 
                                evaluation a requirement to include a 
                                written affirmation of the tenant's 
                                right to organize as provided for in 
                                this paragraph.
                    ``(E) Authorization of appropriations.--There are 
                authorized to be appropriated to the Secretary such 
                sums as are necessary to carry out this paragraph.''.
    (b) Effective Date.--The amendment made by this section shall apply 
to taxable years beginning after the date of the enactment of this Act.

SEC. 4. ENFORCEMENT.

    (a) In General.--Not later than 1 year after the date of enactment 
of this Act, the Office of Public and Indian Housing of the Department 
of Housing and Urban Development shall, in coordination with the 
Department of the Treasury, establish a protocol for the enforcement of 
paragraph (23) of section 8(o) of the United States Housing Act of 1937 
(42 U.S.C. 1437f(o)), as added by section 2 of this Act, and paragraph 
(10) of section 42(g) of the Internal Revenue Code of 1986, as added by 
section 3 of this Act, that--
            (1) reflects or integrates into existing enforcement 
        protocol for tenants protected under section 202 of the Housing 
        and Community Development Amendments Act of 1978 (12 U.S.C. 
        1715z-1b), where possible;
            (2) prohibits withholding the tenant-based assistance under 
        such section 8(o) or the denial of the right to occupy an 
        assisted unit or a rent-restricted unit, or any other right or 
        privilege required to be provided as a condition of the tenant-
        based assistance or the project being treated as a qualified 
        low-income housing project until such complaint is closed;
            (3) creates a mechanism for administrative complaints to be 
        filed, cataloged, and investigated regarding public housing 
        agencies, State housing credit agencies, owners, landlords, 
        management, and their representatives' alleged violation of 
        their obligation not to interfere with the right of tenants to 
        establish and operate a legitimate tenant organization, which 
        shall--
                    (A) provide families remedy when the agency 
                determines a violation of the obligation not to 
                interfere with the right of tenants to establish and 
                operate a legitimate tenant organization;
                    (B) include an independent investigation of tenant 
                and advocate allegations of abuse and retaliation;
                    (C) keep tenants informed about the progression of 
                any complaint; and
                    (D) provide confidentiality if necessary, including 
                in cases where alleged abuse is extreme and targeted; 
                and
            (4) if relevant, appropriately refers complaints related to 
        potential violation of fair housing laws to the Office of Fair 
        Housing and Equal Opportunity at the Department of Housing and 
        Urban Development.
    (b) Report.--The Secretary shall submit to the Committee on 
Banking, Housing, and Urban Affairs of the Senate and the Committee on 
Financial Services of the House of Representatives a quarterly report 
on the enforcement of this section that--
            (1) provides all data at both the property-level and 
        jurisdiction-level; and
            (2) includes--
                    (A) the volume of outstanding complaints;
                    (B) the average response time to an initial 
                complaint;
                    (C) the average time it takes to close a complaint; 
                and
                    (D) information about the type of issues reported 
                by tenants that necessitate enforcement action.

SEC. 5. FUNDING FOR TENANT AND OTHER PARTICIPATION AND CAPACITY 
              BUILDING.

    (a) Purpose.--The purpose of the amendment in subsection (b) is to 
expand and demonstrate a firm commitment to tenant organizing in 
Federal housing programs.
    (b) Amendment.--Section 514(f)(3)(A) of the Multifamily Assisted 
Housing Reform and Affordability Act of 1997 (42 U.S.C. 1437f note) is 
amended--
            (1) by striking ``not more than'' and inserting ``not less 
        than'';
            (2) by striking ``of low-income'' and all that follows 
        through ``services'' and inserting ``and improvement of low-
        income housing for which project-based rental assistance, 
        public housing subsidies, low-income housing tax credits, 
        Federal or State subsidized loans, enhanced voucher assistance 
        under section 8(t) of the United States Housing Act of 1937 (42 
        U.S.C. 1437f(t)), tenant-based voucher assistance, or project-
        based assistance is provided under section 8 of that Act are 
        provided or proposed''; and
            (3) by inserting after the period at the end the following: 
        ``For outreach and training of tenants and technical 
        assistance, the Secretary shall implement a grant program 
        utilizing performance-based outcome measures for eligible costs 
        incurred. Recipients providing capacity building or technical 
        assistance services to tenant groups shall be qualified 
        nonprofit State-wide, countywide, area-wide, or city-wide 
        organizations with demonstrated experience including at least a 
        2-year recent track record of organizing and providing 
        assistance to tenants, and independence from the owner, a 
        prospective purchaser, or their managing agents. The Secretary 
        may provide assistance and training to grantees in 
        administrative and fiscal management to ensure compliance with 
        applicable Federal requirements. The Secretary shall expedite 
        the provision of funding for the fiscal year in which the 
        Tenants' Right to Organize Act is enacted and by entering into 
        an interagency agreement for not less than $1,000,000 with the 
        Corporation for National and Community Service to conduct a 
        tenant outreach and training program to eligible housing under 
        this subsection. The Secretary shall also make available 
        flexible grants to qualified nonprofit organizations that do 
        not own eligible multifamily properties, for tenant outreach in 
        underserved areas, and to experienced national or regional 
        nonprofit organizations to provide specialized training or 
        support to grantees assisted under this section. 
        Notwithstanding any other provision of law, funds authorized 
        under this paragraph for any fiscal year shall be available for 
        obligation in subsequent fiscal years. The Secretary shall 
        require each recipient of amounts made available pursuant to 
        this subparagraph to submit to the Secretary quarterly reports 
        detailing the use of such funds and including such information 
        as the Secretary shall require.''.

SEC. 6. INCREASED TENANT PARTICIPATION FUNDS FOR RESIDENT COUNCILS.

    In order to expand and demonstrate a firm commitment to tenant 
organizing in Federal housing programs, not later than 1 year after the 
date of enactment of this Act, the Secretary of Housing and Urban 
Development shall provide each resident council, as defined in section 
964.100 of title 24, Code of Federal Regulations, $40 per unit per 
year, to be increased annually to keep pace with inflation.
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