PUBLIC LAW 102-550—OCT. 28, 1992 106 STAT. 3689

"(3) in the case of an application proposing demolition
or disposition of any portion of a public housing project, assisted
at any time under section 5(jX2>—

"(A) such assistance has not been provided for the
portion of the project to be demolished or disposed within
the 10-year period ending upon submission of the applica-
tion; or

"(B) the property's retention is not in the best interest
of the tenants or the public housing agency because of
extraordinary changes in the area surrounding the project
or other extraordinary circumstances of the project.",
(c) REGULATIONS.—The {Secretary shall issue regulations nec-
essary to carry put the amendments made by this section as pro-
vided under section 191 of this Act.

SEC. 112. PUBLIC HOUSING TENANT PREFERENCES.

Section 6(cX4XAXi) of the United States Housing Act of 1937
(42 U.S.C. 1437d(cX4)(AXi)) is amended by striking "70 percent"
and inserting "50 percent".

SEC. 113. REFORM OF PUBLIC HOUSING MANAGEMENT.

(a) INDEPENDENT MANAGEMENT ASSESSMENT.—Section 6(jX2)
of the United States Housing Act of 1937 (42 U.S.C. 1437d(jX2))
is amended—

(1) by redesignating subparagraph (B) as subparagraph
(C);

(2) by inserting after subparagraph (A) the following new
subparagraph:

"(B)(i) Upon designating a public housing agency as troubled
pursuant to subparagraph (A) and determining that an assessment
under this subparagraph will not duplicate any review conducted
under section 14(p), the Secretary shall provide for an on-site,
independent assessment of the management of the agency.

(ii) To the extent the Secretary deems appropriate (taking
into account an agency's performance under the indicators specified
under paragraph (!)), the assessment team shall also consider issues
relating to the agency's resident population and physical inventory,
including the extent to which (I) the agency's comprehensive plan
prepared pursuant to section 14 adequately ana appropriately
addresses the rehabilitation needs of the agency's inventory, (II)
residents of the agency are involved in and informed of significant
management decisions, and (III) any projects in the agency s inven-
tory are severely distressed and eligible for assistance pursuant
to section 24.

"(iii) An independent assessment under this subparagraph shall
be carried out by a team of knowledgeable individuals selected
by the Secretary (referred to in this section as the 'assessment
team') with expertise in public housing and real estate management.
In conducting an assessment, the assessment team shall consult
with the residents and with public and private entities in the
jurisdiction in which the public housing is located. The assessment Reports-
team shall provide to the Secretary and the public housing agency
a written report, which shall contain, at a minimum, recommenda-
tions for sucn management improvements as are necessary to elimi-
nate or substantially remedy existing deficiencies."; and

(3) in subparagraph (C), as so redesignated by paragraph