A bill to amend the U.S. Housing Act of 1937 for the purpose of providing more incentive for the construction and rehabilitation of units to be leased in connection with the program established by such act.

Amends the United States Housing Act of 1937 to increase construction and rehabilitation of units in connection with the Housing Assistance Payments Program by setting a fair market rent taking into account: (1) construction and interest costs prevalent in the area; (2) trends for increases or decreases during the effective period of such rental; and (3) any statutory or regulatory requirements that affect the cost of the units.

Extends the period of assistance payments for low-income housing where the dwelling unit is unoccupied, so long as a good faith effort is made to fill the unit and the unit is in compliance with applicable building and housing codes. States that after a 60 day period of inoccupancy the Secretary of Housing and Urban Development will make payments in amounts equal to the debt service attributable to such unit for the duration of that annual contribution contract with the public housing agency. Defines debt service as the required payments for the principal and interest made with respect to a mortgage secured by housing assisted by this Act.