REACH Act of 2013

Raising Employment in Affordable Communities and Homes Act of 2013 or REACH Act of 2013 - Amends the Housing and Urban Development Act of 1968 with respect to providing economic opportunities for low- and very low-income persons, particularly recipients of federal assistance for housing.

Prohibits any assistance to a public housing agency (PHA) under the United States Housing Act of 1937 for any fiscal year for low-income housing projects (development assistance), or assistance from the Operating Fund or Capital Fund under the same Act, unless the PHA prepares an action plan describing activities that will: (1) provide such individuals the training and employment opportunities generated by such assistance, and (2) award contracts for work in connection with such assistance to business concerns that also provide economic opportunities for such individuals.

Waives this prohibition for any qualified PHA: (1) the sum of the public housing dwelling units it administers, and the number of tenant-based rental assistance vouchers it administers, is 550 or fewer; and (2) that is not a troubled PHA, and does not have a failing score under the Section 8 Management Assessment Program during the prior 12 months.

Prohibits an Indian tribe or tribally designated housing entity (as defined in the Native American Housing Assistance and Self-Determination Act of 1996) from providing any grant amounts under the Act for any program year unless the tribe or entity prepares an action plan meeting the same criteria.

Waives this prohibition for any recipient of such grant amounts for which the sum of the affordable housing dwelling units it administers and the number of households provided tenant-based rental assistance with such grant amounts, is 550 or fewer.

Requires incorporation of the yearly action plan in: (1) a PHA's annual plan for the fiscal year, or (2) an Indian tribe's (or designated entity's) Indian housing plan for the program year.

Allows retroactive funding to any PHA, Indian tribe, or tribally designated entity upon the development and inclusion of an action plan in the PHA's annual plan or the tribe's or tribal entity's Indian housing plan.

Directs the Secretary to require that each application for housing and community development assistance exceeding $200,000 include an action plan.

Authorizes the Secretary to establish and impose penalties for PHAs, Indian tribes and tribally designated entities, and recipients of housing and community development assistance that do not comply with their action plans to the Secretary's satisfaction.