; or (II) the number of public housing agencies with which the owner has entered into housing assistance payment contracts. . (b) Security deposit payments Section 8(o) of the United States Housing Act of 1937 ( 42 U.S.C. 1437f(o) ), as amended by subsection (a), is amended by adding at the end the following: (23) Security deposit payments (A) Security deposit payment authority The Secretary shall provide assistance to public housing agencies to be used to pay the owner of a dwelling unit assisted under this subsection for a security deposit, or a substantial portion thereof, on behalf of the tenant of the dwelling unit in accordance with subparagraph (B). (B) Minimum PHA requirements A public housing agency that receives assistance from the Secretary under subparagraph (A) shall administer the assistance in accordance with the following conditions: (i) The public housing agency shall pay the owners of dwelling units assisted under this subsection for a security deposit, or a substantial portion thereof, in an amount determined by the public housing agency, on behalf of the tenants of the dwelling units. (ii) In making payments to owners of dwelling units under clause (i), the public housing agency shall give priority to owners of dwelling units occupied by extremely low-income families. (iii) The owner of a dwelling unit may deduct amounts from a security deposit payment received under clause (i) to cover damages beyond normal wear and tear caused by the tenant of the dwelling unit, any member of the tenant’s household, or any guest or other person under the tenant’s control. (iv) The public housing agency shall conduct a damage claims process whereby— (I) in order to deduct amounts from a security deposit payment received under clause (i), the owner of a covered dwelling unit must submit a claim to the public housing agency with an itemized list of damages and evidence and request reimbursement