Rent Reform and Empowerment Act

Rent Reform and Empowerment Act - Amends the United States Housing Act of 1937 to exclude from adjusted income (used to determine rent for assisted housing) the amounts of Federal, State, and local income taxes and social security taxes paid by members of the assisted family. Authorizes public housing agencies to exclude from consideration as income, for purposes of determining limitations on rent, increases in a family's earned income that result from the employment of a previously unemployed family member. Limits such exclusion to the five-year period beginning on the employment of the family member. Grants public housing agencies the option to establish rent ceilings for all families and to freeze rental payments for families that are engaged in activities that promote economic independence and self-sufficiency. Authorizes the Secretary of Housing and Urban Development, at the request of a public housing agency or resident management corporation and under certain conditions, to provide for demonstration programs to determine the feasibility of authorizing such agencies or corporations to establish policies for the operation, maintenance, management, and development of public housing projects without regard to requirements under the United States Housing Act of 1937. Makes certain provisions of the United States Housing Act of 1937 (concerning rental amounts, determination of income and adjustment income, and income eligibility) inapplicable during the period of a demonstration program. Requires rents to be established at the discretion of the agency or corporation and at least 30 percent of the units involved in the program to be available for very low-income families. Authorizes agencies to provide Section 8 assistance to families in units involved in demonstration programs subject to certain conditions. Permits up to 50 agencies and corporations to carry out such programs. Limits programs to five-year periods. Makes this Act applicable to Indian housing.