[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2930 Referred in Senate (RFS)]
1st Session
H. R. 2930
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
December 6, 2007
Received; read twice and referred to the Committee on Banking, Housing,
and Urban Affairs
_______________________________________________________________________
AN ACT
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.
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 2007''.
(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. Project rental assistance.
Sec. 102. Selection criteria.
Sec. 103. Development cost limitations.
Sec. 104. Owner deposits.
Sec. 105. Definition of private nonprofit organization.
Sec. 106. Preferences for homeless elderly.
Sec. 107. Nonmetropolitan allocation.
TITLE II--REFINANCING
Sec. 201. Approval of prepayment of debt.
Sec. 202. Sources of refinancing.
Sec. 203. Use of unexpended amounts.
Sec. 204. Use of project residual receipts.
Sec. 205. Additional provisions.
Sec. 206. Study of mortgage sale demonstration.
TITLE III--ASSISTED LIVING FACILITIES
Sec. 301. Definition of assisted living facility.
Sec. 302. Monthly assistance payment under rental assistance.
TITLE IV--FACILITATING AFFORDABLE HOUSING PRESERVATION TRANSACTIONS
Sec. 401. Use of sale or refinancing proceeds.
TITLE I--NEW CONSTRUCTION REFORMS
SEC. 101. PROJECT RENTAL ASSISTANCE.
Paragraph (2) of section 202(c) of the Housing Act of 1959 (12
U.S.C. 1701q(c)(2)) is amended--
(1) by inserting after ``assistance.--'' the following:
``(A) Initial project rental assistance contract.--'';
(2) in the last sentence, by striking ``may'' and inserting
``shall''; and
(3) by adding at the end the following new subparagraph:
``(B) Renewal of and increases in contract amounts.--
``(i) Expiration of contract term.--Upon the
expiration of each contract term, the Secretary shall
adjust the annual contract amount to provide for
reasonable project costs, and any increases, including
adequate reserves, supportive services, and service
coordinators, except that any contract amounts not used
by a project during a contract term shall not be
available for such adjustments upon renewal.
``(ii) Emergency situations.--In the event of
emergency situations that are outside the control of
the owner, the Secretary shall increase the annual
contract amount, subject to reasonable review and
limitations as the Secretary shall provide.''.
SEC. 102. SELECTION CRITERIA.
Subsection (f) of section 202 of the Housing Act of 1959 (12 U.S.C.
1701q(f)) is amended--
(1) by striking ``Selection Criteria.--'' and inserting
``Initial Selection Criteria and Processing.--(1) Selection
criteria.--'';
(2) by redesignating paragraphs (1), (2), (3), (4), (5),
(6), and (7) as subparagraphs (A), (B), (C), (D), (E), (G), and
(H), respectively;
(3) by inserting after subparagraph (E) (as so redesignated
by paragraph (2) of this subsection) 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);''; and
(4) by adding at the end the following new paragraph:
``(2) Delegated Processing.--
``(A) In issuing a capital advance under this subsection
for any project for which financing for the purposes described
in the last two sentences of subsection (b) is provided by a
combination of a capital advance under subsection (c)(1) and
sources other than this section, within 30 days of award of the
capital advance, the Secretary shall delegate review and
processing of such projects to a State or local housing agency
that--
``(i) is in geographic proximity to the property;
``(ii) has demonstrated experience in and capacity
for underwriting multifamily housing loans that provide
housing and supportive services;
``(iii) may or may not be providing low-income
housing tax credits in combination with the capital
advance under this section, and
``(iv) agrees to issue a firm commitment within 12
months of delegation.
``(B) The Secretary shall retain the authority to process
capital advances in cases in which no State or local housing
agency has applied to provide delegated processing pursuant to
this paragraph or no such agency has entered into an agreement
with the Secretary to serve as a delegated processing agency.
``(C) An agency to which review and processing is delegated
pursuant to subparagraph (A) may assess a reasonable fee which
shall be included in the capital advance amounts and may
recommend project rental assistance amounts in excess of those
initially awarded by the Secretary. The Secretary shall develop
a schedule for reasonable fees under this subparagraph to be
paid to delegated processing agencies, which shall take into
consideration any other fees to be paid to the agency for other
funding provided to the project by the agency, including bonds,
tax credits, and other gap funding.
``(D) Under such delegated system, the Secretary shall
retain the authority to approve rents and development costs and
to execute a capital advance within 60 days of receipt of the
commitment from the State or local agency. The Secretary shall
provide to such agency and the project sponsor, in writing, the
reasons for any reduction in capital advance amounts or project
rental assistance and such reductions shall be subject to
appeal.''.
SEC. 103. 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. 104. 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 three years of operations and shall not be used to
cover construction shortfalls or inadequate initial project rental
assistance amounts.''.
SEC. 105. DEFINITION OF PRIVATE NONPROFIT ORGANIZATION.
Subparagraph (B) of section 202(k)(4) of the Housing Act of 1959
(12 U.S.C. 1701q(k)(4)(B)) is amended by inserting before the semicolon
the following: ``; except that, in the case of any national
organization that is the owner of multiple housing projects assisted
under this section, the organization may comply with clause (i) of this
subparagraph by having a local advisory board to the governing board of
the organization the membership which is selected in the manner
required under clause (i)''.
SEC. 106. PREFERENCES FOR HOMELESS ELDERLY.
Subsection (j) of section 202 (12 U.S.C. 1701q(j)) is amended by
adding at the end the following new paragraph:
``(9) Preferences for homeless elderly.--The Secretary
shall permit an owner of housing assisted under this section to
establish for, and apply to, the housing a preference in tenant
selection for the homeless elderly, either within the
application or after selection pursuant to subsection (f), but
only if--
``(A) such preference is consistent with paragraph
(2) of this subsection; and
``(B) the owner demonstrates that the supportive
services identified pursuant to subsection (e)(4), or
additional supportive services to be made available
upon implementation of the preference, will meet the
needs of the homeless elderly, maintain safety and
security for all tenants, and be provided on a
consistent, long-term, and economical basis.''.
SEC. 107. 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 ``Act)'';
(2) in paragraph (1)--
(A) by inserting ``project-based'' before ``rental
assistance payments contract'';
(B) by inserting ``project-based'' before ``rental
housing assistance programs''; and
(C) by inserting ``, or any successor project-based
rental assistance program,'' after ``1701s))''; and
(3) in paragraph (2)--
(A) by inserting ``(A)'' before ``a lower''; and
(B) by inserting before the period at the end the
following: ``, 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) does not increase''.
SEC. 202. SOURCES OF REFINANCING.
The last sentence of section 811(b) of the American Homeownership
and Economic Opportunity Act of 2000 (12 U.S.C. 1701q note) is
amended--
(1) by inserting after ``National Housing Act,'' the
following: ``or approving the standards used by authorized
lenders to underwrite a loan refinanced with risk sharing as
provided by section 542 of the Housing and Community
Development Act of 1992 (12 U.S.C. 1701 note),''; and
(2) by striking ``may'' and inserting ``shall''.
SEC. 203. 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) in the matter preceding paragraph (1), by inserting
after ``tenants,'' the following: ``or is used in the provision
of affordable rental housing and related social services for
elderly persons by the private nonprofit organization project
owner, private nonprofit organization project sponsor, or
private nonprofit organization project developer,'';
(2) in paragraph (1), by striking ``not more than 15
percent of'';
(3) in paragraph (2), by inserting before the semicolon the
following; ``, including reducing the number of units and
reconfiguring units that are functionally obsolete,
unmarketable, or not economically viable'';
(4) in paragraph (3), by striking ``or'' at the end;
(5) in paragraph (4) by striking the period at the end and
inserting a semicolon; and
(6) by adding at the end the following new paragraphs:
``(5) the payment to the project owner, sponsor, or third
party developer of a developer's fee in an amount not to
exceed--
``(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; or
``(6) the payment of equity, if any, to--
``(A) in the case of a sale, to the seller or the
sponsor of the seller, in an amount equal to the lesser
of the purchase price or the appraised value of the
property, as each is reduced by the cost of prepaying
any outstanding indebtedness on the property and
transaction costs of the sale; or
``(B) in the case of a refinancing without the
transfer of the property, to the project owner or the
project sponsor, in an amount equal to the difference
between the appraised value of the property less the
outstanding indebtedness and total acceptable
development cost.
For purposes of paragraphs (5)(B) and (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. 204. 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. 205. 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, at the election of the private nonprofit
organization owner of the 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.
``(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) 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
such waiver is necessary for the financial feasibility of the
transaction and is consistent with the long-term preservation of the
project as affordable housing.
``(g) Prepayment When Secretary's Consent Not Required.--In
connection with the prepayment under this section of a loan for which
the Secretary's consent to prepayment is not required, at the project
owner's election--
``(1) all tenants of the project shall be eligible for
enhanced vouchers in accordance with section 8(t) of the United
States Housing Act of 1937 (42 U.S.C. 1437f(t)); or
``(2) if the project will continue to be owned by a private
nonprofit organization owner, such private nonprofit
organization owner may enter into a senior preservation rental
assistance contract with the Secretary in accordance with
subsection (e).
``(h) 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)).''.
SEC. 206. STUDY OF MORTGAGE SALE DEMONSTRATION.
(a) Study.--The Secretary of Housing and Urban Development shall
conduct a study to evaluate the estimated costs and potential benefits
of carrying out a program under which the Secretary may sell mortgages
associated with loans made under section 202 of the Housing Act of 1959
(as in effect before the enactment of the Cranston-Gonzalez National
Affordable Housing Act) in accordance with the terms for sales of
subsidized loans on multifamily housing projects under section 203 of
the Housing and Community Development Amendments of 1978 (12 U.S.C.
1701z-11), and of carrying out a demonstration program for sales of
portfolios of such mortgages to housing finance agencies in three
States. In conducting such study, the Secretary shall place particular
emphasis on determining whether the asset management functions and
activities related to such loans and properties could be accomplished
pursuant to such sales in a timely, effective, and efficient manner,
including an analysis of the potential impacts on approvals of
refinancings and preservation transactions, rent increase requests, and
withdrawals from reserves or residual receipts (in cases in which there
is no contract administrator).
(b) Report.--Not later than the expiration of the 12-month period
beginning upon the date of the enactment of this Act, the Secretary
shall submit a report to the Committee on Financial Services of the
House of Representatives and the Committee on Banking, Housing, and
Urban Affairs of the Senate on the findings of the study and any
recommendations for implementing such a program and such a
demonstration.
TITLE III--ASSISTED LIVING FACILITIES
SEC. 301. DEFINITION OF ASSISTED LIVING FACILITY.
Section 202b(g) of the Housing Act of 1959 (12 U.S.C. 1701q-2(g))
is amended by striking paragraph (1) and inserting the following new
paragraph:
``(1) the term `assisted living facility' means a facility
that--
``(A) is owned by a private nonprofit organization;
and
``(B)(i) is licensed and regulated by the State (or
if there is no State law providing for such licensing
and regulation by the State, by the municipality or
other political subdivision in which the facility is
located); or
``(ii)(I) makes available, directly or through
recognized and experienced third party service
providers, to residents at the resident's request or
choice supportive services to assist the residents in
carrying out the activities of daily living, such as
bathing, dressing, eating, getting in and our of bed or
chairs, walking, going outdoors, toileting, laundry,
home management, preparing meals, shopping for personal
items, obtaining and taking medication, managing money,
using the telephone, or performing light of heavy
housework, and which may make available to residents
home health care service, such as nursing and therapy,
and certain health related services; and
``(II) provides separate dwelling units for
residents, each of which may contain 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 facility; and''.
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 as the
Secretary deems appropriate''.
TITLE IV--FACILITATING AFFORDABLE HOUSING PRESERVATION TRANSACTIONS
SEC. 401. USE OF SALE OR REFINANCING PROCEEDS.
Notwithstanding any other provision of law, in connection with the
sale or refinancing of a multifamily housing project, or the transfer
of an assistance contract on such a property, that requires the
approval of the Secretary of Housing and Urban Development, the
Secretary shall not impose any condition that restricts the amount or
use of sale or refinancing proceeds, or requires the filing of a
financial report, unless such condition is expressly authorized by an
existing contract entered into between the Secretary (or the
Secretary's designee) and the project owner before the imposition of a
condition prohibited by this section or is a general condition for new
financing with a mortgage insured by the Secretary. Any such condition
previously imposed by the Secretary after January 1, 2005, shall, at
the option of the project owner, be considered void and not
enforceable, and any agreement con-
taining such a condition shall be rescinded and may be reissued without
the void condition.
Passed the House of Representatives December 5, 2007.
Attest:
LORRAINE C. MILLER,
Clerk.