PUBLIC LAW 105-276—OCT. 21, 1998 112 STAT. 2579 such section existed immediately before the effective date under section 503(a) of the QuaUty Housing and Work Responsibility Act of 1998. SEC. 534. TRANSFER OF MANAGEMENT OF CERTAIN HOUSING TO INDEPENDENT MANAGER AT REQUEST OF RESIDENTS. The United States Housing Act of 1937 is amended by striking section 25 (42 U.S.C. 1437w) and inserting the following new section: "SEC. 25. TRANSFER OF MANAGEMENT OF CERTAIN HOUSING TO 42 USC 1437w. INDEPENDENT MANAGER AT REQUEST OF RESIDENTS. "(a) AUTHORITY.— The Secretary may transfer the responsibility and authority for management of specified housing (as such term is defined in subsection (h)) from a public housing agency to an eligible management entity, in accordance with the requirements of this section, if— "(1) a request for transfer of management of such housing is made and approved in accordance with subsection (b); and "(2) the Secretary or the public housing agency, as appropriate pursuant to subsection (b), determines that— "(A) due to the mismanagement of the agency, such housing has deferred maintenance, physical deterioration, or obsolescence of major systems and other deficiencies in the physical plant of the project; "(B) such housing is located in an area such that the housing is subject to recurrent vandalism and criminal activity (including drug-related criminal activity); and "(C) the residents can demonstrate that the elements of distress for such housing specified in subparagraphs (A) and (B) can be remedied by an entity or entities, identified by the residents, that has or have a demonstrated capacity to manage, with reasonable expenses for modernization. "(b) REQUEST FOR TRANSFER. — The responsibility and authority for managing specified housing may be transferred only pursuant to a request made by a majority vote of the residents for the specified housing that— "(1) in the case of specified housing that is owned by a public housing agency that is designated as a troubled agency under section 6(j)(2)— "(A) is made to the public housing agency or the Secretary; and "(B) is approved by the agency or the Secretary; or "(2) in the case of specified housing that is owned by a public housing agency that is not designated as a troubled agency under section 6(j)(2)— "(A) is made to and approved by the public housing agency; or "(B) if a request is made to the agency pursuant to subparagraph (A) and is not approved, is subsequently made to and approved by the Secretary. "(c) CAPITAL AND OPERATING ASSISTANCE. —Pursuant to a contract under subsection (d), the Secretary shall require the public housing agency for specified housing to provide to the manager for the housing, from any assistance from the Capital and Operating Funds under section 9 for the agency, fair and reasonable amounts for the housing for eligible capital and operating activities under
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