Protect Our Schools from Tax Delinquents Act of 2016

Protect Our Schools from Tax Delinquents Act of 2016

This bill amends the United States Housing Act of 1937 to require that each housing assistance payments contract entered into under the Section 8 rental assistance voucher program by a public housing agency (PHA) and the owner of a dwelling unit provide that such owner pay, on a timely basis, all covered taxes validly assessed against the property in which the unit is located.

A "covered tax" is any tax under state or local law assessed upon real property or the revenue of which is dedicated for use only for schools or for costs of education.

The bill allows a contract to provide that, upon notification and identification of a tax delinquency by a taxing authority, the PHA shall abate all of the rental assistance amounts for the property, transferring them monthly to the taxing authority, until the delinquency is eliminated.

The bill does not authorize or establish any cause or grounds for the termination of the tenancy of any tenant from any dwelling unit assisted under the rental assistance voucher program.

The Department of Housing and Urban Development must maintain a database of information regarding owners of dwelling units: (1) assisted under the program whose housing assistance payments contracts have been terminated for noncompliance with the requirements of this bill, and (2) with respect to whom assistance amounts have been abated and transferred to a taxing authority.