[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3635 Introduced in House (IH)]







105th CONGRESS
  2d Session
                                H. R. 3635

 To provide for the conversion of housing projects for elderly persons 
 financed by direct loans to financing under project rental assistance 
                               contracts.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 1, 1998

    Mr. Lazio  of New York (for himself, Mr. Leach, Mr. Kennedy of 
Massachusetts, Mr. Hayworth, Mr. Bereuter, Mr. Sessions, Mr. Traficant, 
Mr. Ensign, Mr. Ehrlich, Mr. Ney, Mr. Fox of Pennsylvania, Mrs. Kelly, 
     Mr. Portman, Mr. Jackson, Mr. Jones, Mr. Cook, Mr. English of 
Pennsylvania, and Mr. Metcalf) introduced the following bill; which was 
      referred to the Committee on Banking and Financial Services

_______________________________________________________________________

                                 A BILL


 
 To provide for the conversion of housing projects for elderly persons 
 financed by direct loans to financing under project rental assistance 
                               contracts.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Senior Citizens'' Housing Financial 
Restructuring Act of 1998''.

SEC. 2. CONVERSION.

    Subject to the provisions of this Act and the agreement of the 
owner of a project assisted under section 202 of the Housing Act of 
1959 (as in effect before the enactment of the Cranston-Gonzalez 
National Affordable Housing Act) and section 8 of the United States 
Housing Act of 1937, the Secretary may convert the financing of any 
such housing project to financing under section 202 of the Housing Act 
of 1959, as amended by section 801 of the Cranston-Gonzalez National 
Affordable Housing Act (12 U.S.C. 1701q).

SEC. 3. DEBT FORGIVENESS.

    (a) In General.--Subject to subsection (b), in converting the 
financing of any housing project pursuant to this Act, the Secretary 
may cancel any indebtedness to the Secretary relating to any remaining 
principal and interest under any loan for the project made under 
section 202 of the Housing Act of 1959 (as in effect before the 
enactment of the Cranston-Gonzalez National Affordable Housing Act).
    (b) Budget Act Compliance.--The authority of the Secretary to 
cancel indebtedness under subsection (a) shall be effective only to the 
extent or in such amounts as are or have been provided in advance in 
appropriation Acts.

SEC. 4. CANCELLATION OF SECTION 8 CONTRACTS AND USE OF PROJECT FUNDS.

    (a) In General.--In converting the financing of any housing project 
pursuant to this Act, the Secretary may cancel any contract for rental 
assistance for the project under section 8 of the United States Housing 
Act of 1937.
    (b) Use of Unexpended Amounts.--Amounts previously obligated for 
such contract that remain unexpended shall be used, to the extent the 
Secretary considers appropriate, in accordance with subsection (d) to 
improve the market viability, affordability, or service to low-income 
elderly residents of the project. Any such unexpended amounts in excess 
of the amount used in accordance with subsection (d) shall be 
recaptured by the Secretary.
    (c) Use of Project Funds.--In converting the financing of any 
housing project pursuant to this Act, the Secretary may authorize the 
owner of the project to use any residual receipts held for the project 
that exceed $500 per unit (or such other amount as the Secretary may 
prescribe based on the needs of the project) in accordance with 
subsection (d) to improve the market viability, affordability, or 
service to low-income elderly residents of the project.
    (d) Eligible Activities.--Amounts are used in accordance with this 
subsection only if they are used--
            (1) to provide rental assistance for the project, under a 
        contract for project rental assistance under section 202(c)(2) 
        of the Housing Act of 1959, which has a duration that is not 
        less than the remainder of the section 8 contract canceled; or
            (2) to retrofit or renovate the project or provide a 
        service coordinator for residents of the project, to the same 
        extent that such activities are authorized to be provided under 
        section 802 of the Cranston-Gonzalez National Affordable 
        Housing Act to housing assisted under such section.

SEC. 5. THIRD PARTY PROCESSING.

    The Secretary may enter into contracts with public or private 
entities as the Secretary considers appropriate to facilitate efficient 
processing of elderly housing project conversions under this Act.

SEC. 6. WAIVER AUTHORITY.

    The Secretary may waive the applicability of any provision of law 
or regulation necessary to carry out this Act.
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