S.Amdt. 4850Senate111th Congress (2009-2011)
To comply with the Statutory Pay-As-You-Go-Act of 2010.
Sponsored by 
Sen. Christopher J. Dodd (D-CT)
Sen. Christopher J. Dodd (D-CT)Submitted December 18, 2010
Text
Proposed
This amendment's own text couldn't be picked out of its Congressional Record passage, so the passage is shown in full.
SECTION 202 SUPPORTIVE HOUSING FOR THE ELDERLY ACT OF 2009
Mr. BROWN of Ohio. Mr. President, I ask unanimous consent that the
Senate proceed to the immediate consideration of Calendar No. 657, S.
118.
The PRESIDING OFFICER. The clerk will report the bill by title.
The bill clerk read as follows:
A bill (S. 118) to amend section 202 of the Housing Act of
1959, to improve the program under such section for
supportive housing for the elderly, and for other purposes.
There being no objection, the Senate proceeded to consider the
bill, which had been reported from the Committee on Banking, Housing,
and Urban Affairs, with an amendment to strike all after the enacting
clause and insert in lieu thereof the following:
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Section
202 Supportive Housing for the Elderly Act of 2010''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title and table of contents.
TITLE I--NEW CONSTRUCTION REFORMS
Sec. 101. Selection criteria.
Sec. 102. Development cost limitations.
Sec. 103. Owner deposits.
Sec. 104. Definition of private nonprofit organization.
Sec. 105. Nonmetropolitan allocation.
TITLE II--REFINANCING
Sec. 201. Approval of prepayment of debt.
Sec. 202. Use of unexpended amounts.
Sec. 203. Use of project residual receipts.
Sec. 204. Additional provisions.
TITLE III--ASSISTED LIVING FACILITIES AND SERVICE-ENRICHED HOUSING
Sec. 301. Amendments to the grants for conversion of elderly housing to
assisted living facilities.
Sec. 302. Monthly assistance payment under rental assistance.
TITLE IV--NATIONAL SENIOR HOUSING CLEARINGHOUSE
Sec. 401. National senior housing clearinghouse.
TITLE I--NEW CONSTRUCTION REFORMS
SEC. 101. SELECTION CRITERIA.
Section 202(f)(1) of the Housing Act of 1959 (12 U.S.C.
1701q(f)(1)) is amended--
(1) by redesignating subparagraphs (F) and (G) as
subparagraphs (G) and (H), respectively; and
(2) by inserting after subparagraph (E) the following new
subparagraph:
``(F) the extent to which the applicant has ensured that a
service coordinator will be employed or otherwise retained
for the housing, who has the managerial capacity and
responsibility for carrying out the actions described in
subparagraphs (A) and (B) of subsection (g)(2);''.
SEC. 102. DEVELOPMENT COST LIMITATIONS.
Section 202(h)(1) of the Housing Act of 1959 (12 U.S.C.
1701q(h)(1)) is amended, in the matter preceding subparagraph
(A), by inserting ``reasonable'' before ``development cost
limitations''.
SEC. 103. OWNER DEPOSITS.
Section 202(j)(3)(A) of the Housing Act of 1959 (12 U.S.C.
1701q(j)(3)(A)) is amended by inserting after the period at
the end the following: ``Such amount shall be used only to
cover operating deficits during the first 3 years of
operations and shall not be used to cover construction
shortfalls or inadequate initial project rental assistance
amounts.''.
SEC. 104. DEFINITION OF PRIVATE NONPROFIT ORGANIZATION.
Section 202(k)(4) of the Housing Act of 1959 (12 U.S.C.
1701q(k)(4)) is amended to read as follows:
``(4) The term `private nonprofit organization' means--
``(A) any incorporated private institution or foundation--
``(i) no part of the net earnings of which inures to the
benefit of any member, founder, contributor, or individual;
``(ii) which has a governing board--
``(I) the membership of which is selected in a manner to
assure that there is significant representation of the views
of the community in which such housing is located; and
``(II) which is responsible for the operation of the
housing assisted under this section, except that, in the case
of a nonprofit organization that is the sponsoring
organization of multiple housing projects assisted under this
section, the Secretary may determine the criteria or
conditions under which financial, compliance and other
administrative responsibilities exercised by a single-entity
private nonprofit organization that is the owner corporation
responsible for the operation of an individual housing
project may be shared or transferred to the governing board
of such sponsoring organization; and
``(iii) which is approved by the Secretary as to financial
responsibility; and
``(B) a for-profit limited partnership the sole general
partner of which is--
``(i) an organization meeting the requirements under
subparagraph (A);
``(ii) a for-profit corporation wholly owned and controlled
by one or more organizations meeting the requirements under
subparagraph (A); or
``(iii) a limited liability company wholly owned and
controlled by one or more organizations meeting the
requirements under subparagraph (A).''.
SEC. 105. NONMETROPOLITAN ALLOCATION.
Paragraph (3) of section 202(l) of the Housing Act of 1959
(12 U.S.C. 1701q(l)(3)) is amended by inserting after the
period at the end the following: ``In complying with this
paragraph, the Secretary shall either operate a national
competition for the nonmetropolitan funds or make allocations
to regional offices of the Department of Housing and Urban
Development.''.
TITLE II--REFINANCING
SEC. 201. APPROVAL OF PREPAYMENT OF DEBT.
Subsection (a) of section 811 of the American Homeownership
and Economic Opportunity Act of 2000 (12 U.S.C. 1701q note)
is amended--
(1) in the matter preceding paragraph (1), by inserting ``,
for which the Secretary's consent to prepayment is
required,'' after ``Affordable Housing Act)'';
(2) in paragraph (1)--
(A) by inserting ``at least 20 years following'' before
``the maturity date'';
(B) by inserting ``project-based'' before ``rental
assistance payments contract'';
(C) by inserting ``project-based'' before ``rental housing
assistance programs''; and
(D) by inserting ``, or any successor project-based rental
assistance program,'' after ``1701s))'';
(3) by amending paragraph (2) to read as follows:
``(2) the prepayment may involve refinancing of the loan if
such refinancing results in--
``(A) a lower interest rate on the principal of the loan
for the project and in reductions in debt service related to
such loan; or
``(B) a transaction in which the project owner will address
the physical needs of the project, but only if, as a result
of the refinancing--
``(i) the rent charges for unassisted families residing in
the project do not increase or such families are provided
rental assistance under a senior preservation rental
assistance contract for the project pursuant to subsection
(e); and
``(ii) the overall cost for providing rental assistance
under section 8 for the project (if any) is not increased,
except, upon approval by the Secretary to--
``(I) mark-up-to-market contracts pursuant to section
524(a)(3) of the Multifamily Assisted Housing Reform and
Affordability Act (42 U.S.C. 1437f note), as such section is
carried out by the Secretary for properties owned by
nonprofit organizations; or
``(II) mark-up-to-budget contracts pursuant to section
524(a)(4) of the Multifamily Assisted Housing Reform and
Affordability Act (42 U.S.C. 1437f note), as such section is
carried out by the Secretary for properties owned by eligible
owners (as such term is defined in section 202(k) of the
Housing Act of 1959 (12 U.S.C. 1701q(k)); and''; and
(4) by adding at the end the following:
``(3) notwithstanding paragraph (2)(A), the prepayment and
refinancing authorized pursuant to paragraph (2)(B) involves
an increase in debt service only in the case of a refinancing
of a project assisted with a loan under such section 202
carrying an interest rate of 6 percent or lower.''.
SEC. 202. USE OF UNEXPENDED AMOUNTS.
Subsection (c) of section 811 of the American Homeownership
and Economic Opportunity Act of 2000 (12 U.S.C. 1701q note)
is amended--
(1) by striking ``Use of Unexpended Amounts.--'' and
inserting ``Use of Proceeds.--'';
(2) by amending the matter preceding paragraph (1) to read
as follows: ``Upon execution of the refinancing for a project
pursuant to this section, the Secretary shall ensure that
proceeds are used in a manner advantageous to tenants of the
project, or are used in the provision of affordable rental
housing and related social services for elderly persons that
are tenants of the project or are tenants of other HUD-
assisted senior housing by the private nonprofit organization
project owner, private nonprofit organization project
sponsor, or private nonprofit organization project developer,
including--'';
(3) by amending paragraph (1) to read as follows:
[[Page S10699]]
``(1) not more than 15 percent of the cost of increasing
the availability or provision of supportive services, which
may include the financing of service coordinators and
congregate services, except that upon the request of the non-
profit owner, sponsor, or organization and determination of
the Secretary, such 15 percent limitation may be waived to
ensure that the use of unexpended amounts better enables
seniors to age in place;'';
(4) in paragraph (2), by inserting before the semicolon the
following; ``, including reducing the number of units by
reconfiguring units that are functionally obsolete,
unmarketable, or not economically viable'';
(5) in paragraph (3), by striking ``or'' at the end;
(6) in paragraph (4), by striking ``according to a pro rata
allocation of shared savings resulting from the
refinancing.'' and inserting a semicolon; and
(7) by adding at the end the following new paragraphs:
``(5) rehabilitation of the project to ensure long-term
viability; and
``(6) the payment to the project owner, sponsor, or third
party developer of a developer's fee in an amount not to
exceed or duplicate--
``(A) in the case of a project refinanced through a State
low income housing tax credit program, the fee permitted by
the low income housing tax credit program as calculated by
the State program as a percentage of acceptable development
cost as defined by that State program; or
``(B) in the case of a project refinanced through any other
source of refinancing, 15 percent of the acceptable
development cost.
For purposes of paragraph (6)(B), the term `acceptable
development cost' shall include, as applicable, the cost of
acquisition, rehabilitation, loan prepayment, initial reserve
deposits, and transaction costs.''.
SEC. 203. USE OF PROJECT RESIDUAL RECEIPTS.
Paragraph (1) of section 811(d) of the American
Homeownership and Economic Opportunity Act of 2000 (12 U.S.C.
1701q note) is amended--
(1) by striking ``not more than 15 percent of''; and
(2) by inserting before the period at the end the
following: ``or other purposes approved by the Secretary''.
SEC. 204. ADDITIONAL PROVISIONS.
Section 811 of the American Homeownership and Economic
Opportunity Act of 2000 (12 U.S.C. 1701q note) is amended by
adding at the end the following new subsections:
``(e) Senior Preservation Rental Assistance Contracts.--
Notwithstanding any other provision of law, in connection
with a prepayment plan for a project approved under
subsection (a) by the Secretary or as otherwise approved by
the Secretary to prevent displacement of elderly residents of
the project in the case of refinancing or recapitalization
and to further preservation and affordability of such
project, the Secretary shall provide project-based rental
assistance for the project under a senior preservation rental
assistance contract, as follows:
``(1) Assistance under the contract shall be made available
to the private nonprofit organization owner--
``(A) for a term of at least 20 years, subject to annual
appropriations; and
``(B) under the same rules governing project-based rental
assistance made available under section 8 of the Housing Act
of 1937 or under the rules of such assistance as may be made
available for the project.
``(2) Any projects for which a senior preservation rental
assistance contract is provided shall be subject to a use
agreement to ensure continued project affordability having a
term of the longer of (A) the term of the senior preservation
rental assistance contract, or (B) such term as is required
by the new financing.
``(f) Subordination or Assumption of Existing Debt.--In
lieu of prepayment under this section of the indebtedness
with respect to a project, the Secretary may approve--
``(1) in connection with new financing for the project, the
subordination of the loan for the project under section 202
of the Housing Act of 1959 (as in effect before the enactment
of the Cranston-Gonzalez National Affordable Housing Act) and
the continued subordination of any other existing subordinate
debt previously approved by the Secretary to facilitate
preservation of the project as affordable housing; or
``(2) the assumption (which may include the subordination
described in paragraph (1)) of the loan for the project under
such section 202 in connection with the transfer of the
project with such a loan to a private nonprofit organization.
``(g) Flexible Subsidy Debt.--The Secretary shall waive the
requirement that debt for a project pursuant to the flexible
subsidy program under section 201 of the Housing and
Community Development Amendments of 1978 (12 U.S.C. 1715z-1a)
be prepaid in connection with a prepayment, refinancing, or
transfer under this section of a project if the financial
transaction or refinancing cannot be completed without the
waiver.
``(h) Tenant Involvement in Prepayment and Refinancing.--
The Secretary shall not accept an offer to prepay the loan
for any project under section 202 of the Housing Act of 1959
unless the Secretary--
``(1) has determined that the owner of the project has
notified the tenants of the owner's request for approval of a
prepayment; and
``(2) has determined that the owner of the project has
provided the tenants with an opportunity to comment on the
owner's request for approval of a prepayment, including on
the description of any anticipated rehabilitation or other
use of the proceeds from the transaction, and its impacts on
project rents, tenant contributions, or the affordability
restrictions for the project, and that the owner has
responded to such comments in writing.
``(i) Definition of Private Nonprofit Organization.--For
purposes of this section, the term `private nonprofit
organization' has the meaning given such term in section
202(k) of the Housing Act of 1959 (12 U.S.C. 1701q(k)).''.
TITLE III--ASSISTED LIVING FACILITIES AND SERVICE-ENRICHED HOUSING
SEC. 301. AMENDMENTS TO THE GRANTS FOR CONVERSION OF ELDERLY
HOUSING TO ASSISTED LIVING FACILITIES.
(a) Technical Amendment.--The section heading for section
202b of the Housing Act of 1959 (12 U.S.C. 1701q-2) is
amended by inserting ``AND OTHER PURPOSES'' after ``ASSISTED
LIVING FACILITIES''.
(b) Extension of Grant Authority.--Section 202b(a)(2) of
the Housing Act of 1959 (12 U.S.C. 1701q-2(a)(2)) is
amended--
(1) by striking ``(2) Conversion.--Activities'' and
inserting the following:
``(2) Conversion.--
``(A) Assisted living facilities.--Activities''; and
(2) by adding at the end the following:
``(B) Service-enriched housing.--Activities designed to
convert dwelling units in the eligible project to service-
enriched housing for elderly persons.''.
(c) Amendment to Application Process.--Section 202b(c)(1)
of the Housing Act of 1959 (12 U.S.C. 1701q-2(c)(1)) is
amended by inserting ``for either an assisted living facility
or service-enriched housing'' after ``activities''.
(d) Requirements for Services.--Section 202b(d) of the
Housing Act of 1959 (12 U.S.C. 1701q-2(d)) is amended to read
as follows:
``(d) Requirements for Services.--
``(1) Sufficient evidence of firm funding commitments.--The
Secretary may not make a grant under this section for
conversion activities unless an application for a grant
submitted pursuant to subsection (c) contains sufficient
evidence, in the determination of the Secretary, of firm
commitments for the funding of services to be provided in the
assisted living facility or service-enriched housing, which
may be provided by third parties.
``(2) Required evidence.--The Secretary shall require
evidence that each recipient of a grant for service-enriched
housing under this section provides relevant and timely
disclosure of information to residents or potential residents
of such housing relating to--
``(A) the services that will be available at the property
to each resident, including--
``(i) the right to accept, decline, or choose such services
and to have the choice of provider;
``(ii) the services made available by or contracted through
the grantee;
``(iii) the identity of, and relevant information for, all
agencies or organizations providing any services to
residents, which agencies or organizations shall provide
information regarding all procedures and requirements to
obtain services, any charges or rates for the services, and
the rights and responsibilities of the residents related to
those services;
``(B) the availability, identity, contact information, and
role of the service coordinator; and
``(C) such other information as the Secretary determines to
be appropriate to ensure that residents are adequately
informed of the services options available to promote
resident independence and quality of life.''.
(e) Amendments to Selection Criteria.--Section 202b(e) of
the Housing Act of 1959 (12 U.S.C. 1701q-2(e)) is amended--
(1) in paragraph (2)--
(A) by inserting ``or service-enriched housing'' after
``facilities''; and
(B) by inserting ``service-enriched housing'' after
``facility'';
(2) in paragraph (5), by inserting ``or service-enriched
housing'' after ``facility''; and
(3) in paragraph (6), by inserting ``or service-enriched
housing'' after ``facility''.
(f) Amendments to Section 8 Project-based Assistance.--
Section 202b(f) of the Housing Act of 1959 (12 U.S.C. 1701q-
2(f)) is amended--
(1) in paragraph (1), by inserting ``or service-enriched
housing'' after ``facilities'' each time that term appears;
and
(2) in paragraph (2), by inserting ``or service-enriched
housing'' after ``facility''.
(g) Amendments to Definitions.--Section 202b(g) of the
Housing Act of 1959 (12 U.S.C. 1701q-2(g)) is amended to read
as follows:
``(g) Definitions.--For purposes of this section--
``(1) the term `assisted living facility' has the meaning
given such term in section 232(b) of the National Housing Act
(1715w(b));
``(2) the term `service-enriched housing' means housing
that--
``(A) makes available through licensed or certified third
party service providers supportive services to assist the
residents in carrying out activities of daily living, such as
bathing, dressing, eating, getting in and out of bed or
chairs, walking, going outdoors, using the toilet, laundry,
home management, preparing meals, shopping for personal
items, obtaining and taking medication, managing money, using
the telephone, or performing light or heavy housework, and
which may make available to residents home health care
services, such as nursing and therapy;
``(B) includes the position of service coordinator, which
may be funded as an operating expense of the property; ;
``(C) provides separate dwelling units for residents, each
of which contains a full kitchen and bathroom and which
includes common rooms and other facilities appropriate for
the provision of supportive services to the residents of the
housing; and
``(D) provides residents with control over health care and
supportive services decisions, including the right to accept,
decline, or choose such services, and to have the choice of
provider; and
[[Page S10700]]
``(3) the definitions in section 1701(q)(k) of this title
shall apply.''.
SEC. 302. MONTHLY ASSISTANCE PAYMENT UNDER RENTAL ASSISTANCE.
Clause (iii) of section 8(o)(18)(B) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(o)(18)(B)(iii)) is
amended by inserting before the period at the end the
following: ``, except that a family may be required at the
time the family initially receives such assistance to pay
rent in an amount exceeding 40 percent of the monthly
adjusted income of the family by such an amount or percentage
that is reasonable given the services and amenities provided
and as the Secretary deems appropriate.''.
TITLE IV--NATIONAL SENIOR HOUSING CLEARINGHOUSE
SEC. 401. NATIONAL SENIOR HOUSING CLEARINGHOUSE.
(a) Establishment.--Not later than 360 days after the date
of enactment of this Act, the Secretary of Housing and Urban
Development shall establish and operate a clearinghouse to
serve as a national repository to receive, collect, process,
assemble, and disseminate information regarding the
availability and quality of multifamily developments for
elderly tenants, including--
(1) the availability of--
(A) supportive housing for the elderly pursuant to section
202 of the Housing Act of 1959 (12 U.S.C. 1701q), including
any housing unit assisted with a project rental assistance
contract under such section;
(B) properties and units eligible for assistance under
section 8 of the United States Housing Act of 1937 (42 U.S.C.
1437f);
(C) properties eligible for the low-income housing tax
credit under section 42 of the Internal Revenue Code of 1986;
(D) units in assisted living facilities insured pursuant to
section 221(d)(4) of the National Housing Act (12 U.S.C.
1715l(d)(4));
(E) units in any multifamily project that has been
converted into an assisted living facility for elderly
persons pursuant to section 202b of the Housing Act of 1959
(12 U.S.C. 1701q-2); and
(F) any other federally assisted or subsidized housing for
the elderly;
(2) the number of available units in each property,
project, or facility described in paragraph (1);
(3) the number of bedrooms in each available unit in each
property, project, or facility described in paragraph (1);
(4) the estimated cost to a potential tenant to rent or
reside in each available unit in each property, project, or
facility described in paragraph (1);
(5) the presence of a waiting list for entry into any
available unit in each property, project, or facility
described in paragraph (1);
(6) the number of persons on the waiting list for entry
into any available unit in each property, project, or
facility described in paragraph (1);
(7) the amenities available in each available unit in each
property, project, or facility described in paragraph (1),
including--
(A) the services provided by such property, project, or
facility;
(B) the size and availability of common space within each
property, project, or facility;
(C) the availability of organized activities for
individuals residing in such property, project, or facility;
and
(D) any other additional amenities available to individuals
residing in such property, project, or facility;
(8) the level of care (personal, physical, or nursing)
available to individuals residing in any property, project,
or facility described in paragraph (1);
(9) whether there is a service coordinator in any property,
project, or facility described in paragraph (1); and
(10) any other criteria determined appropriate by the
Secretary.
(b) Collection and Updating of Information.--
(1) Initial collection.--Not later than 180 days after the
date of enactment of this Act, the Secretary of Housing and
Urban Development shall conduct a survey requesting
information from each owner of a property, project, or
facility described in subsection (a)(1) regarding the
provisions described in paragraphs (2) through (10) of such
subsection.
(2) Response time.--Not later than 60 days after receiving
the request described under paragraph (1), the owner of each
such property, project, or facility shall submit such
information to the Secretary of Housing and Urban
Development.
(3) Public availability.--Not later than 120 days after the
Secretary of Housing and Urban Development receives the
submission of any information required under paragraph (2),
the Secretary shall make such information publicly available
through the clearinghouse.
(4) Updates.--The Secretary of Housing and Urban
Development shall conduct a biennial survey of each owner of
a property, project, or facility described in subsection
(a)(1) for the purpose of updating or modifying information
provided in the initial collection of information under
paragraph (1). Not later than 30 days after receiving such a
request, the owner of each such property, project, or
facility shall submit such updates or modifications to the
Secretary. Not later than 60 days after receiving such
updates or modifications, the Secretary shall inform the
clearinghouse of such updated or modified information.
(c) Functions.--The clearinghouse established under
subsection (a) shall--
(1) respond to inquiries from State and local governments,
other organizations, and individuals requesting information
regarding the availability of housing in multifamily
developments for elderly tenants;
(2) make such information publicly available via the
Internet website of the Department of Housing and Urban
Development, which shall include--
(A) access via electronic mail; and
(B) an easily searchable, sortable, downloadable, and
accessible index that itemizes the availability of housing in
multifamily developments for elderly tenants by State,
county, and zip code;
(3) establish a toll-free number to provide the public with
specific information regarding the availability of housing in
multifamily developments for elderly tenants; and
(4) perform any other duty that the Secretary determines
necessary to achieve the purposes of this section.
(d) Relationship With Other Databases.--The Secretary of
Housing and Urban Development may make the clearinghouse
established under subsection (a) a part of any other
multifamily housing database the Secretary is required to
establish.
(e) Authorization of Appropriations.--There are authorized
to be appropriated such sums as necessary to carry out this
section.
Mr. BROWN of Ohio. Mr. President, I ask unanimous consent that the
committee-reported substitute amendment be considered, that a Dodd
amendment which is at the desk be agreed to, the committee-substitute
amendment, as amended, be agreed to, the bill, as amended, be read a
third time, and that a budgetary pay-go statement be read.
The PRESIDING OFFICER. Without objection, it is so ordered.
The amendment (No. 4850) was agreed to, as follows:
(Purpose: To comply with the Statutory Pay-As-You-Go-Act of 2010)
On page 45, strike line 1 and all that follows through page
50, line 8
On page 50, after line 8, insert the following:
TITLE IV--COMPLIANCE WITH STATUTORY PAY-AS-YOU-GO ACT OF 2010
SEC. 401. BUDGETARY EFFECTS.
The budgetary effects of this Act, for the purpose of
complying with the Statutory Pay-As-You-Go-Act of 2010, shall
be determined by reference to the latest statement titled
``Budgetary Effects of PAYGO Legislation'' for this Act,
submitted for printing in the Congressional Record by the
Chairman of the Senate Budget Committee, provided that such
statement has been submitted prior to the vote on passage.
The committee-reported substitute amendment, as amended, was agreed
to.
The bill was ordered to be engrossed for a third reading and was read
the third time.
The PRESIDING OFFICER. The clerk will read the pay-go statement.
The bill clerk read as follows:
Mr. Conrad: This is the Statement of Budgetary Effects of
PAYGO Legislation for S. 118.
Total Budgetary Effects of S. 118 for the 5-year Statutory
PAYGO Scorecard: net increase in the deficit of $5 million.
Total Budgetary Effects of S. 118 for the 10-year Statutory
PAYGO Scorecard: net increase in the deficit of $5 million.
Also submitted for the Record as part of this statement is
a table prepared by the Congressional Budget Office, which
provides additional information on the budgetary effects of
this act, as follows:
CBO ESTIMATE OF THE STATUTORY PAY-AS-YOU-GO EFFECTS FOR S. 118, THE SECTION 202 SUPPORTIVE HOUSING FOR THE ELDERLY ACT OF 2010, AS PROVIDED TO CBO BY
THE SENATE COMMITTEE ON THE BUDGET ON DECEMBER 17, 2010
--------------------------------------------------------------------------------------------------------------------------------------------------------
By fiscal year, in millions of dollars--
---------------------------------------------------------------------------------------------------------------
2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2011-2015 2011-2020
--------------------------------------------------------------------------------------------------------------------------------------------------------
Net Increase in the Deficit
Statutory Pay-As-You-Go Impact a........ 5 0 0 0 0 0 0 0 0 0 5 5
--------------------------------------------------------------------------------------------------------------------------------------------------------
Note: The language transmitted to CBO on December 17, 2010 included an amendment that would strike Title IV of S. 118 as ordered reported by the Senate
Committee on Banking, Housing, and Urban Affairs on September 20, 2010.
a S. 118 would amend the American Homeownership and Economic Opportunity Act of 2000 to increase the number of properties that are eligible to prepay
loans issued under Section 202 of the Housing Act of 1959. The bill also would expand the eligible uses for savings generated by refinancing Section
202 loans.
[[Page S10701]]
Mr. BROWN of Ohio. Mr. President, I ask unanimous consent that the
bill be passed, and the motions to reconsider be laid upon the table,
with no intervening action or debate, and any statements related to the
bill be printed in the Record.
The PRESIDING OFFICER. Without objection, it is so ordered.
The bill (S. 118), as amended, was passed, as follows:
S. 118
Be it enacted by the Senate and House of Representatives of
the United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Section
202 Supportive Housing for the Elderly Act of 2010''.
(b) Table of Contents.--The table of contents for this Act
is as follows:
Sec. 1. Short title and table of contents.
TITLE I--NEW CONSTRUCTION REFORMS
Sec. 101. Selection criteria.
Sec. 102. Development cost limitations.
Sec. 103. Owner deposits.
Sec. 104. Definition of private nonprofit organization.
Sec. 105. Nonmetropolitan allocation.
TITLE II--REFINANCING
Sec. 201. Approval of prepayment of debt.
Sec. 202. Use of unexpended amounts.
Sec. 203. Use of project residual receipts.
Sec. 204. Additional provisions.
TITLE III--ASSISTED LIVING FACILITIES AND SERVICE-ENRICHED HOUSING
Sec. 301. Amendments to the grants for conversion of elderly housing to
assisted living facilities.
Sec. 302. Monthly assistance payment under rental assistance.
TITLE IV--COMPLIANCE WITH STATUTORY PAY-AS-YOU-GO ACT OF 2010
Sec. 401. Budgetary effects.
TITLE I--NEW CONSTRUCTION REFORMS
SEC. 101. SELECTION CRITERIA.
Section 202(f)(1) of the Housing Act of 1959 (12 U.S.C.
1701q(f)(1)) is amended--
(1) by redesignating subparagraphs (F) and (G) as
subparagraphs (G) and (H), respectively; and
(2) by inserting after subparagraph (E) the following new
subparagraph:
``(F) the extent to which the applicant has ensured that a
service coordinator will be employed or otherwise retained
for the housing, who has the managerial capacity and
responsibility for carrying out the actions described in
subparagraphs (A) and (B) of subsection (g)(2);''.
SEC. 102. DEVELOPMENT COST LIMITATIONS.
Section 202(h)(1) of the Housing Act of 1959 (12 U.S.C.
1701q(h)(1)) is amended, in the matter preceding subparagraph
(A), by inserting ``reasonable'' before ``development cost
limitations''.
SEC. 103. OWNER DEPOSITS.
Section 202(j)(3)(A) of the Housing Act of 1959 (12 U.S.C.
1701q(j)(3)(A)) is amended by inserting after the period at
the end the following: ``Such amount shall be used only to
cover operating deficits during the first 3 years of
operations and shall not be used to cover construction
shortfalls or inadequate initial project rental assistance
amounts.''.
SEC. 104. DEFINITION OF PRIVATE NONPROFIT ORGANIZATION.
Section 202(k)(4) of the Housing Act of 1959 (12 U.S.C.
1701q(k)(4)) is amended to read as follows:
``(4) The term `private nonprofit organization' means--
``(A) any incorporated private institution or foundation--
``(i) no part of the net earnings of which inures to the
benefit of any member, founder, contributor, or individual;
``(ii) which has a governing board--
``(I) the membership of which is selected in a manner to
assure that there is significant representation of the views
of the community in which such housing is located; and
``(II) which is responsible for the operation of the
housing assisted under this section, except that, in the case
of a nonprofit organization that is the sponsoring
organization of multiple housing projects assisted under this
section, the Secretary may determine the criteria or
conditions under which financial, compliance and other
administrative responsibilities exercised by a single-entity
private nonprofit organization that is the owner corporation
responsible for the operation of an individual housing
project may be shared or transferred to the governing board
of such sponsoring organization; and
``(iii) which is approved by the Secretary as to financial
responsibility; and
``(B) a for-profit limited partnership the sole general
partner of which is--
``(i) an organization meeting the requirements under
subparagraph (A);
``(ii) a for-profit corporation wholly owned and controlled
by one or more organizations meeting the requirements under
subparagraph (A); or
``(iii) a limited liability company wholly owned and
controlled by one or more organizations meeting the
requirements under subparagraph (A).''.
SEC. 105. NONMETROPOLITAN ALLOCATION.
Paragraph (3) of section 202(l) of the Housing Act of 1959
(12 U.S.C. 1701q(l)(3)) is amended by inserting after the
period at the end the following: ``In complying with this
paragraph, the Secretary shall either operate a national
competition for the nonmetropolitan funds or make allocations
to regional offices of the Department of Housing and Urban
Development.''.
TITLE II--REFINANCING
SEC. 201. APPROVAL OF PREPAYMENT OF DEBT.
Subsection (a) of section 811 of the American Homeownership
and Economic Opportunity Act of 2000 (12 U.S.C. 1701q note)
is amended--
(1) in the matter preceding paragraph (1), by inserting ``,
for which the Secretary's consent to prepayment is
required,'' after ``Affordable Housing Act)'';
(2) in paragraph (1)--
(A) by inserting ``at least 20 years following'' before
``the maturity date'';
(B) by inserting ``project-based'' before ``rental
assistance payments contract'';
(C) by inserting ``project-based'' before ``rental housing
assistance programs''; and
(D) by inserting ``, or any successor project-based rental
assistance program,'' after ``1701s))'';
(3) by amending paragraph (2) to read as follows:
``(2) the prepayment may involve refinancing of the loan if
such refinancing results in--
``(A) a lower interest rate on the principal of the loan
for the project and in reductions in debt service related to
such loan; or
``(B) a transaction in which the project owner will address
the physical needs of the project, but only if, as a result
of the refinancing--
``(i) the rent charges for unassisted families residing in
the project do not increase or such families are provided
rental assistance under a senior preservation rental
assistance contract for the project pursuant to subsection
(e); and
``(ii) the overall cost for providing rental assistance
under section 8 for the project (if any) is not increased,
except, upon approval by the Secretary to--
``(I) mark-up-to-market contracts pursuant to section
524(a)(3) of the Multifamily Assisted Housing Reform and
Affordability Act (42 U.S.C. 1437f note), as such section is
carried out by the Secretary for properties owned by
nonprofit organizations; or
``(II) mark-up-to-budget contracts pursuant to section
524(a)(4) of the Multifamily Assisted Housing Reform and
Affordability Act (42 U.S.C. 1437f note), as such section is
carried out by the Secretary for properties owned by eligible
owners (as such term is defined in section 202(k) of the
Housing Act of 1959 (12 U.S.C. 1701q(k)); and''; and
(4) by adding at the end the following:
``(3) notwithstanding paragraph (2)(A), the prepayment and
refinancing authorized pursuant to paragraph (2)(B) involves
an increase in debt service only in the case of a refinancing
of a project assisted with a loan under such section 202
carrying an interest rate of 6 percent or lower.''.
SEC. 202. USE OF UNEXPENDED AMOUNTS.
Subsection (c) of section 811 of the American Homeownership
and Economic Opportunity Act of 2000 (12 U.S.C. 1701q note)
is amended--
(1) by striking ``Use of Unexpended Amounts.--'' and
inserting ``Use of Proceeds.--'';
(2) by amending the matter preceding paragraph (1) to read
as follows: ``Upon execution of the refinancing for a project
pursuant to this section, the Secretary shall ensure that
proceeds are used in a manner advantageous to tenants of the
project, or are used in the provision of affordable rental
housing and related social services for elderly persons that
are tenants of the project or are tenants of other HUD-
assisted senior housing by the private nonprofit organization
project owner, private nonprofit organization project
sponsor, or private nonprofit organization project developer,
including--'';
(3) by amending paragraph (1) to read as follows:
``(1) not more than 15 percent of the cost of increasing
the availability or provision of supportive services, which
may include the financing of service coordinators and
congregate services, except that upon the request of the non-
profit owner, sponsor, or organization and determination of
the Secretary, such 15 percent limitation may be waived to
ensure that the use of unexpended amounts better enables
seniors to age in place;'';
(4) in paragraph (2), by inserting before the semicolon the
following; ``, including reducing the number of units by
reconfiguring units that are functionally obsolete,
unmarketable, or not economically viable'';
(5) in paragraph (3), by striking ``or'' at the end;
(6) in paragraph (4), by striking ``according to a pro rata
allocation of shared savings resulting from the
refinancing.'' and inserting a semicolon; and
(7) by adding at the end the following new paragraphs:
``(5) rehabilitation of the project to ensure long-term
viability; and
``(6) the payment to the project owner, sponsor, or third
party developer of a developer's fee in an amount not to
exceed or duplicate--
``(A) in the case of a project refinanced through a State
low income housing tax credit program, the fee permitted by
the low income housing tax credit program as calculated by
the State program as a percentage of acceptable development
cost as defined by that State program; or
``(B) in the case of a project refinanced through any other
source of refinancing, 15 percent of the acceptable
development cost.
[[Page S10702]]
For purposes of paragraph (6)(B), the term `acceptable
development cost' shall include, as applicable, the cost of
acquisition, rehabilitation, loan prepayment, initial reserve
deposits, and transaction costs.''.
SEC. 203. USE OF PROJECT RESIDUAL RECEIPTS.
Paragraph (1) of section 811(d) of the American
Homeownership and Economic Opportunity Act of 2000 (12 U.S.C.
1701q note) is amended--
(1) by striking ``not more than 15 percent of''; and
(2) by inserting before the period at the end the
following: ``or other purposes approved by the Secretary''.
SEC. 204. ADDITIONAL PROVISIONS.
Section 811 of the American Homeownership and Economic
Opportunity Act of 2000 (12 U.S.C. 1701q note) is amended by
adding at the end the following new subsections:
``(e) Senior Preservation Rental Assistance Contracts.--
Notwithstanding any other provision of law, in connection
with a prepayment plan for a project approved under
subsection (a) by the Secretary or as otherwise approved by
the Secretary to prevent displacement of elderly residents of
the project in the case of refinancing or recapitalization
and to further preservation and affordability of such
project, the Secretary shall provide project-based rental
assistance for the project under a senior preservation rental
assistance contract, as follows:
``(1) Assistance under the contract shall be made available
to the private nonprofit organization owner--
``(A) for a term of at least 20 years, subject to annual
appropriations; and
``(B) under the same rules governing project-based rental
assistance made available under section 8 of the Housing Act
of 1937 or under the rules of such assistance as may be made
available for the project.
``(2) Any projects for which a senior preservation rental
assistance contract is provided shall be subject to a use
agreement to ensure continued project affordability having a
term of the longer of (A) the term of the senior preservation
rental assistance contract, or (B) such term as is required
by the new financing.
``(f) Subordination or Assumption of Existing Debt.--In
lieu of prepayment under this section of the indebtedness
with respect to a project, the Secretary may approve--
``(1) in connection with new financing for the project, the
subordination of the loan for the project under section 202
of the Housing Act of 1959 (as in effect before the enactment
of the Cranston-Gonzalez National Affordable Housing Act) and
the continued subordination of any other existing subordinate
debt previously approved by the Secretary to facilitate
preservation of the project as affordable housing; or
``(2) the assumption (which may include the subordination
described in paragraph (1)) of the loan for the project under
such section 202 in connection with the transfer of the
project with such a loan to a private nonprofit organization.
``(g) Flexible Subsidy Debt.--The Secretary shall waive the
requirement that debt for a project pursuant to the flexible
subsidy program under section 201 of the Housing and
Community Development Amendments of 1978 (12 U.S.C. 1715z-1a)
be prepaid in connection with a prepayment, refinancing, or
transfer under this section of a project if the financial
transaction or refinancing cannot be completed without the
waiver.
``(h) Tenant Involvement in Prepayment and Refinancing.--
The Secretary shall not accept an offer to prepay the loan
for any project under section 202 of the Housing Act of 1959
unless the Secretary--
``(1) has determined that the owner of the project has
notified the tenants of the owner's request for approval of a
prepayment; and
``(2) has determined that the owner of the project has
provided the tenants with an opportunity to comment on the
owner's request for approval of a prepayment, including on
the description of any anticipated rehabilitation or other
use of the proceeds from the transaction, and its impacts on
project rents, tenant contributions, or the affordability
restrictions for the project, and that the owner has
responded to such comments in writing.
``(i) Definition of Private Nonprofit Organization.--For
purposes of this section, the term `private nonprofit
organization' has the meaning given such term in section
202(k) of the Housing Act of 1959 (12 U.S.C. 1701q(k)).''.
TITLE III--ASSISTED LIVING FACILITIES AND SERVICE-ENRICHED HOUSING
SEC. 301. AMENDMENTS TO THE GRANTS FOR CONVERSION OF ELDERLY
HOUSING TO ASSISTED LIVING FACILITIES.
(a) Technical Amendment.--The section heading for section
202b of the Housing Act of 1959 (12 U.S.C. 1701q-2) is
amended by inserting ``AND OTHER PURPOSES'' after ``ASSISTED
LIVING FACILITIES''.
(b) Extension of Grant Authority.--Section 202b(a)(2) of
the Housing Act of 1959 (12 U.S.C. 1701q-2(a)(2)) is
amended--
(1) by striking ``(2) Conversion.--Activities'' and
inserting the following:
``(2) Conversion.--
``(A) Assisted living facilities.--Activities''; and
(2) by adding at the end the following:
``(B) Service-enriched housing.--Activities designed to
convert dwelling units in the eligible project to service-
enriched housing for elderly persons.''.
(c) Amendment to Application Process.--Section 202b(c)(1)
of the Housing Act of 1959 (12 U.S.C. 1701q-2(c)(1)) is
amended by inserting ``for either an assisted living facility
or service-enriched housing'' after ``activities''.
(d) Requirements for Services.--Section 202b(d) of the
Housing Act of 1959 (12 U.S.C. 1701q-2(d)) is amended to read
as follows:
``(d) Requirements for Services.--
``(1) Sufficient evidence of firm funding commitments.--The
Secretary may not make a grant under this section for
conversion activities unless an application for a grant
submitted pursuant to subsection (c) contains sufficient
evidence, in the determination of the Secretary, of firm
commitments for the funding of services to be provided in the
assisted living facility or service-enriched housing, which
may be provided by third parties.
``(2) Required evidence.--The Secretary shall require
evidence that each recipient of a grant for service-enriched
housing under this section provides relevant and timely
disclosure of information to residents or potential residents
of such housing relating to--
``(A) the services that will be available at the property
to each resident, including--
``(i) the right to accept, decline, or choose such services
and to have the choice of provider;
``(ii) the services made available by or contracted through
the grantee;
``(iii) the identity of, and relevant information for, all
agencies or organizations providing any services to
residents, which agencies or organizations shall provide
information regarding all procedures and requirements to
obtain services, any charges or rates for the services, and
the rights and responsibilities of the residents related to
those services;
``(B) the availability, identity, contact information, and
role of the service coordinator; and
``(C) such other information as the Secretary determines to
be appropriate to ensure that residents are adequately
informed of the services options available to promote
resident independence and quality of life.''.
(e) Amendments to Selection Criteria.--Section 202b(e) of
the Housing Act of 1959 (12 U.S.C. 1701q-2(e)) is amended--
(1) in paragraph (2)--
(A) by inserting ``or service-enriched housing'' after
``facilities''; and
(B) by inserting ``service-enriched housing'' after
``facility'';
(2) in paragraph (5), by inserting ``or service-enriched
housing'' after ``facility''; and
(3) in paragraph (6), by inserting ``or service-enriched
housing'' after ``facility''.
(f) Amendments to Section 8 Project-based Assistance.--
Section 202b(f) of the Housing Act of 1959 (12 U.S.C. 1701q-
2(f)) is amended--
(1) in paragraph (1), by inserting ``or service-enriched
housing'' after ``facilities'' each time that term appears;
and
(2) in paragraph (2), by inserting ``or service-enriched
housing'' after ``facility''.
(g) Amendments to Definitions.--Section 202b(g) of the
Housing Act of 1959 (12 U.S.C. 1701q-2(g)) is amended to read
as follows:
``(g) Definitions.--For purposes of this section--
``(1) the term `assisted living facility' has the meaning
given such term in section 232(b) of the National Housing Act
(1715w(b));
``(2) the term `service-enriched housing' means housing
that--
``(A) makes available through licensed or certified third
party service providers supportive services to assist the
residents in carrying out activities of daily living, such as
bathing, dressing, eating, getting in and out of bed or
chairs, walking, going outdoors, using the toilet, laundry,
home management, preparing meals, shopping for personal
items, obtaining and taking medication, managing money, using
the telephone, or performing light or heavy housework, and
which may make available to residents home health care
services, such as nursing and therapy;
``(B) includes the position of service coordinator, which
may be funded as an operating expense of the property; ;
``(C) provides separate dwelling units for residents, each
of which contains a full kitchen and bathroom and which
includes common rooms and other facilities appropriate for
the provision of supportive services to the residents of the
housing; and
``(D) provides residents with control over health care and
supportive services decisions, including the right to accept,
decline, or choose such services, and to have the choice of
provider; and
``(3) the definitions in section 1701(q)(k) of this title
shall apply.''.
SEC. 302. MONTHLY ASSISTANCE PAYMENT UNDER RENTAL ASSISTANCE.
Clause (iii) of section 8(o)(18)(B) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(o)(18)(B)(iii)) is
amended by inserting before the period at the end the
following: ``, except that a family may be required at the
time the family initially receives such assistance to pay
rent in an amount exceeding 40 percent of the monthly
adjusted income of the family by such an amount or percentage
that is reasonable given the services and amenities provided
and as the Secretary deems appropriate.''.
TITLE IV--COMPLIANCE WITH STATUTORY PAY-AS-YOU-GO ACT OF 2010
SEC. 401. BUDGETARY EFFECTS.
The budgetary effects of this Act, for the purpose of
complying with the Statutory Pay-As-You-Go-Act of 2010, shall
be determined by reference to the latest statement
[[Page S10703]]
titled ``Budgetary Effects of PAYGO Legislation'' for this
Act, submitted for printing in the Congressional Record by
the Chairman of the Senate Budget Committee, provided that
such statement has been submitted prior to the vote on
passage.
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Senate amendment submitted
December 18, 2010
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Senate amendment submitted
December 18, 2010
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Senate amendment agreed to: Amendment SA 4850 agreed to in Senate by Unanimous Consent.
December 18, 2010
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Senate amendment proposed (on the floor): Amendment SA 4850 proposed by Senator Brown OH for Senator Dodd.(consideration: CR S10700; text: CR S10700)
December 18, 2010
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Amendment SA 4850 proposed by Senator Brown OH for Senator Dodd. (consideration: CR S10700; text: CR S10700) To comply with the Statutory Pay-As-You-Go-Act of 2010.
December 18, 2010
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Amendment SA 4850 agreed to in Senate by Unanimous Consent.
December 18, 2010