[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[H.R. 202 Referred in Senate (RFS)]
1st Session
H. R. 202
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
September 28, 1999
Received; read twice and referred to the Committee on Banking, Housing,
and Urban Affairs
_______________________________________________________________________
AN ACT
To provide for the preservation of assisted housing for low-income
elderly persons, disabled persons, and other families.
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 ``Preserving
Affordable Housing for Senior Citizens and Families into the 21st
Century Act''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title and table of contents.
Sec. 2. Regulations.
Sec. 3. Effective date.
TITLE I--CONVERSION OF FINANCING AND REFINANCING FOR SECTION 202
SUPPORTIVE HOUSING FOR THE ELDERLY
Sec. 101. Conversion of financing
Sec. 102. Prepayment and refinancing.
TITLE II--AUTHORIZATION OF APPROPRIATIONS FOR SUPPORTIVE HOUSING FOR
THE ELDERLY AND PERSONS WITH DISABILITIES
Sec. 201. Supportive housing for elderly persons.
Sec. 202. Supportive housing for persons with disabilities.
Sec. 203. Service coordinators and congregate services for elderly and
disabled housing.
TITLE III--EXPANDING HOUSING OPPORTUNITIES FOR THE ELDERLY AND PERSONS
WITH DISABILITIES
Subtitle A--Housing for the Elderly
Sec. 301. Matching grant program.
Sec. 302. Eligibility of for-profit limited partnerships.
Sec. 303. Mixed funding sources.
Sec. 304. Authority to acquire structures.
Sec. 305. Mixed-income occupancy.
Sec. 306. Use of project reserves.
Sec. 307. Commercial activities.
Sec. 308. Mixed finance pilot program.
Sec. 309. Grants for conversion of elderly housing to assisted living
facilities.
Sec. 310. Grants for conversion of public housing projects to assisted
living facilities.
Sec. 311. Use of section 8 assistance for assisted living facilities.
Sec. 312. Annual HUD inventory of assisted housing designated for
elderly persons.
Sec. 313. Treatment of applications.
Subtitle B--Housing for Persons With Disabilities
Sec. 321. Matching grant program.
Sec. 322. Eligibility of for-profit limited partnerships.
Sec. 323. Mixed funding sources.
Sec. 324. Tenant-based assistance.
Sec. 325. Project size.
Sec. 326. Use of project reserves.
Sec. 327. Commercial activities.
Subtitle C--Other Provisions
Sec. 341. Service coordinators.
Sec. 342. Commission on Affordable Housing and Health Care Facility
Needs in the 21st Century.
TITLE IV--RENEWAL OF EXPIRING RENTAL ASSISTANCE CONTRACTS AND
PROTECTION OF RESIDENTS
Sec. 401. Findings and purpose.
Sec. 402. Renewal of expiring contracts and enhanced vouchers for
project residents.
Sec. 403. Section 236 assistance.
Sec. 404. Matching grant program for affordable housing preservation.
Sec. 405. Rehabilitation of assisted housing.
Sec. 406. Technical assistance.
Sec. 407. Termination of section 8 contract and duration of renewal
contract.
Sec. 408. Enhanced voucher eligibility for residents of flexible
subsidy properties.
Sec. 409. Enhanced disposition authority.
Sec. 410. Assistance for nonprofit purchasers preserving affordable
housing.
TITLE V--MORTGAGE INSURANCE FOR HEALTH CARE FACILITIES AND HOME EQUITY
CONVERSION MORTGAGES
Sec. 501. Rehabilitation of existing hospitals, nursing homes, and
other facilities.
Sec. 502. New health care facilities.
Sec. 503. Hospitals and hospital-based health care facilities.
Sec. 504. Insurance for mortgages to refinance existing home equity
conversion mortgages.
SEC. 2. REGULATIONS.
The Secretary of Housing and Urban Development shall issue any
regulations to carry out this Act and the amendments made by this Act
that the Secretary determines may or will affect tenants of federally
assisted housing only after notice and opportunity for public comment
in accordance with the procedure under section 553 of title 5, United
States Code, applicable to substantive rules (notwithstanding
subsections (a)(2), (b)(B), and (d)(3) of such section). Notice of such
proposed rulemaking shall be provided by publication in the Federal
Register. In issuing such regulations, the Secretary shall take such
actions as may be necessary to ensure that such tenants are notified
of, and provided an opportunity to participate in, the rulemaking, as
required by such section 553.
SEC. 3. EFFECTIVE DATE.
(a) In General.--The provisions of this Act and the amendments made
by this Act are effective as of the date of the enactment of this Act,
unless such provisions or amendments specifically provide for
effectiveness or applicability upon another date certain.
(b) Effect of Regulatory Authority.--Any authority in this Act or
the amendments made by this Act to issue regulations, and any specific
requirement to issue regulations by a date certain, may not be
construed to affect the effectiveness or applicability of the
provisions of this Act or the amendments made by this Act under such
provisions and amendments and subsection (a) of this section.
TITLE I--CONVERSION OF FINANCING AND REFINANCING FOR SECTION 202
SUPPORTIVE HOUSING FOR THE ELDERLY
SEC. 101. CONVERSION OF FINANCING
(a) In General.--Subject to the provisions of this section, at the
request 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 (or any other rental housing assistance
programs of the Department of Housing and Urban Development, including
the rent supplement program under section 101 of the Housing and Urban
Development Act of 1965 (12 U.S.C. 1701s)), the Secretary shall 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). In
such a conversion, the Secretary shall, if requested by the owner,
convert loans made under such section 202 (as in effect before
enactment of the Cranston-Gonzalez National Affordable Housing Act),
and shall convert section 8 contracts (or such other contracts for
rental housing assistance) provided in connection with such loans, into
capital advances and project rental assistance under section 202 (as
amended by section 801 of the Cranston-Gonzalez National Affordable
Housing Act), respectively, in accordance with this section.
(b) Debt Forgiveness.--
(1) In general.--Subject to paragraph (2), in converting
the financing of any housing project pursuant to this section,
the Secretary shall 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).
(2) Budget act compliance.--The authority of the Secretary
to cancel indebtedness under paragraph (1) shall be effective
only to the extent or in such amounts as are or have been
provided in advance in appropriation Acts.
(c) Cancellation of Rental Assistance Contracts and Use of Project
Funds.--
(1) In general.--For each housing project for which debt is
canceled under subsection (b) of this section pursuant to a
request for conversion under subsection (a), the Secretary
shall cancel any contract for rental assistance for the project
under section 8 of the United States Housing Act of 1937 (or
any other contract for rental housing assistance under a
program of the Department of Housing and Urban Development,
including the rent supplement program under section 101 of the
Housing and Urban Development Act of 1965 (12 U.S.C. 1701s)).
(2) Use of unexpended amounts.--Amounts previously
obligated for such contract that remain unexpended shall be
used as follows:
(A) Project rental assistance contract.--Remaining
amounts shall be used first, to the extent necessary,
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 (12 U.S.C.
1701q(c)(2)), that--
(i) has a duration that is not less than
the remainder of the section 8 or other rental
housing assistance contract canceled; and
(ii) provides assistance in an annual
amount that is equal to the aggregate amount
provided during the last 12-month period under
the section 8 or other rental housing
assistance contract for the project canceled
(pursuant to paragraph (1) of this subsection),
less the portion of such assistance that is
attributable to debt service for the loan on
the project canceled under subsection (b) of
this section, subject to an annual adjustment
of existing rents under the contract by an
operating cost adjustment factor established by
the Secretary (which shall not result in a
negative adjustment).
(B) Credit against loan cancellation.--Amounts
remaining after compliance with subparagraph (A) shall,
on a fiscal year basis, be transferred to the account
covering the loan for the project canceled pursuant to
subsection (b) and shall be credited as offsetting
collection to such account, in an amount for each
fiscal year that is equal to the amount of indebtedness
canceled for such year pursuant such subsection.
(C) Retrofitting, renovation, and service
coordinators.--Any amounts remaining after compliance
with subparagraphs (A) and (B) may be used, to the
extent the Secretary considers appropriate, 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.
Any such unexpended amounts in excess of the amount used in
accordance with subparagraphs (A) through (C) shall be
recaptured by the Secretary.
(3) Use of project funds.--In converting the financing of
any housing project pursuant to this section, 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 paragraph (2) to improve the market
viability, affordability, or service to low-income elderly
residents of the project.
(d) 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 section.
(e) Tenant Protections.--Notwithstanding any provision of 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)--
(1) any tenant who, at the time of the conversion under
this section of the financing for a housing project, is
lawfully residing in a dwelling unit in the project, may not be
considered to be ineligible for continued residency in the
project after such date because such tenant is not a very low-
income elderly person; and
(2) very low-income persons with disabilities (as such term
is defined in section 811 of the Cranston-Gonzalez National
Affordable Housing Act) shall be eligible for occupancy in such
project, and units in the project shall be reserved for
occupancy by such persons in not less than the same ratio that
units in such project are occupied, upon the date of conversion
under this section, by handicapped families (as such term is
defined in section 202 of the Housing Act of 1959, as in effect
before the enactment of the Cranston-Gonzalez National
Affordable Housing Act).
(f) Waiver Authority.--The Secretary may waive the applicability of
any provision of law or regulation necessary to carry out this section.
(g) Study of Debt Forgiveness.--
(1) In general.--The Secretary shall conduct an analysis of
the net impact on the Federal budget deficit or surplus of
making available, on a one-time basis, to sponsors of projects
assisted under section 202 of the Housing Act of 1959 (as in
effect before the enactment of the Cranston-Gonzalez National
Affordable Housing Act), forgiveness of any indebtedness to the
Secretary relating to any remaining principal and interest
under loans made under such section, together with a dollar for
dollar reduction in the amount of rental assistance under
section 8 of the United States Housing Act of 1937 or other
rental assistance provided for such project. Such analysis
shall take into consideration the full cost of future
appropriations for rental assistance under such section 8
expected to be provided if such debt forgiveness does not take
place, notwithstanding current budgetary treatment of such
actions pursuant to the Congressional Budget Act of 1974.
(2) Report.--Not later than the expiration of the 3-month
period beginning on the date of the enactment of this Act, the
Secretary shall submit a report to the Congress containing the
quantitative results of the analysis and an enumeration of any
project or administrative benefits of such actions.
SEC. 102. PREPAYMENT AND REFINANCING.
(a) Approval of Prepayment of Debt.--Upon request of the project
sponsor of a project assisted with a loan under section 202 of the
Housing Act of 1959 (as in effect before the enactment of the Cranston-
Gonzalez National Affordable Housing Act), the Secretary shall approve
the prepayment of any indebtedness to the Secretary relating to any
remaining principal and interest under the loan as part of a prepayment
plan under which--
(1) the project sponsor agrees to operate the project until
the maturity date of the original loan under terms at least as
advantageous to existing and future tenants as the terms
required by the original loan agreement or any rental
assistance payments contract under section 8 of the United
States Housing Act of 1937 (or any other rental housing
assistance programs of the Department of Housing and Urban
Development, including the rent supplement program under
section 101 of the Housing and Urban Development Act of 1965
(12 U.S.C. 1701s)) relating to the project; and
(2) the prepayment may involve refinancing of the loan if
such refinancing results in a lower interest rate on the
principal of the loan for the project and in reductions in debt
service related to such loan.
(b) Sources of Refinancing.--In the case of prepayment under this
section involving refinancing, the project sponsor may refinance the
project through any third party source, including financing by State
and local housing finance agencies, use of tax-exempt bonds, multi-
family mortgage insurance under the National Housing Act, reinsurance,
or other credit enhancements, including risk sharing as provided under
section 542 of the Housing and Community Development Act of 1992 (12
U.S.C. 1707 note). For purposes of underwriting a loan insured under
the National Housing Act, the Secretary may assume that any section 8
rental assistance contract relating to a project will be renewed for
the term of such loan.
(c) Use of Unexpended Amounts.--Upon execution of the refinancing
for a project pursuant to this section, the Secretary shall make
available at least 50 percent of the annual savings resulting from
reduced section 8 or other rental housing assistance contracts in a
manner that is advantageous to the tenants, including--
(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;
(2) rehabilitation, modernization, or retrofitting of
structures, common areas, or individual dwelling units;
(3) construction of an addition or other facility in the
project, including assisted living facilities (or, upon the
approval of the Secretary, facilities located in the community
where the project sponsor refinances a project under this
section, or pools shared resources from more than one such
project); or
(4) rent reduction of unassisted tenants residing in the
project according to a pro rata allocation of shared savings
resulting from the refinancing.
(d) Use of Certain Project Funds.--The Secretary shall allow a
project sponsor that is prepaying and refinancing a project under this
section--
(1) to use any residual receipts held for that project in
excess of $500 per individual dwelling unit for not more than
15 percent of the cost of activities designed to increase the
availability or provision of supportive services; and
(2) to use any reserves for replacement in excess of $1,000
per individual dwelling unit for activities described in
paragraphs (2) and (3) of subsection (c).
(e) Budget Act Compliance.--This section shall be effective only to
extent or in such amounts that are provided in advance in appropriation
Acts.
TITLE II--AUTHORIZATION OF APPROPRIATIONS FOR SUPPORTIVE HOUSING FOR
THE ELDERLY AND PERSONS WITH DISABILITIES
SEC. 201. SUPPORTIVE HOUSING FOR ELDERLY PERSONS.
Section 202 of the Housing Act of 1959 (12 U.S.C. 1701q) is amended
by adding at the end the following new subsection:
``(m) Authorization of Appropriations.--There is authorized to be
appropriated for providing assistance under this section $700,000,000
for fiscal year 2000 and such sums as may be necessary for each of
fiscal years 2001, 2002, 2003, and 2004. Of the amount provided in
appropriation Acts for assistance under this section in each such
fiscal year, 5 percent shall be available only for providing assistance
in accordance with the requirements under subsection (c)(4) (relating
to matching funds), except that if there insufficient eligible
applicants for such assistance, any amount remaining shall be used for
assistance under this section.''.
SEC. 202. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES.
Section 811 of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 8013) is amended--
(1) by redesignating subsection (m) as subsection (n); and
(2) by inserting after subsection (l) the following new
subsection:
``(m) Authorization of Appropriations.--There is authorized to be
appropriated for providing assistance under this section $225,000,000
for fiscal year 2000 and such sums as may be necessary for each of
fiscal years 2001, 2002, 2003, and 2004. Of the amount provided in
appropriation Acts for assistance under this section in each such
fiscal year, 5 percent shall be available only for providing assistance
in accordance with the requirements under subsection (d)(5) (relating
to matching funds), except that if there insufficient eligible
applicants for such assistance, any amount remaining shall be used for
assistance under this section.''.
SEC. 203. SERVICE COORDINATORS AND CONGREGATE SERVICES FOR ELDERLY AND
DISABLED HOUSING.
(a) Authorization of Appropriations for Federally Assisted
Housing.--There is authorized to be appropriated to the Secretary of
Housing and Urban Development $50,000,000 for fiscal year 2000, and
such sums as may be necessary for each of fiscal years 2001 and 2002,
for the following purposes:
(1) Grants for service coordinators for certain federally
assisted multifamily housing.--For grants under section 676 of
the Housing and Community Development Act of 1992 (42 U.S.C.
13632) for providing service coordinators.
(2) Congregate services for federally assisted housing.--
For contracts under section 802 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 8011) to provide
congregate services programs for eligible residents of eligible
housing projects under subparagraphs (B) through (D) of
subsection (k)(6) of such section.
(b) Public Housing.--There is authorized to be appropriated to the
Secretary of Housing and Urban Development for fiscal year 2000 for
grants for use only for activities described in paragraph (2) of
section 34(b) of the United States Housing Act of 1937 (42 U.S.C.
1437z-6(b)(2))--
(1) such sums as may be necessary for renewal of all grants
made in prior fiscal years for providing service coordinators
and congregate services for the elderly and disabled in public
housing; and
(2) $11,000,000 for grants in addition to such renewal
grants.
TITLE III--EXPANDING HOUSING OPPORTUNITIES FOR THE ELDERLY AND PERSONS
WITH DISABILITIES
Subtitle A--Housing for the Elderly
SEC. 301. MATCHING GRANT PROGRAM.
Section 202 of the Housing Act of 1959 (12 U.S.C. 1701q) is
amended--
(1) in subsection (b), in the second sentence, by inserting
``or through matching grants under subsection (c)(4)'' after
``subsection (c)(1)''; and
(2) in subsection (c), by adding at the end the following
new paragraph:
``(4) Matching grants.--
``(A) In general.--Amounts made available for
assistance under this paragraph shall be used only for
capital advances in accordance with paragraph (1),
except that the Secretary shall require that, as a
condition of providing assistance under this paragraph
for a project, the applicant for assistance shall
supplement the assistance with amounts from sources
other than this section in an amount that is not less
than 25 to 50 percent (as the Secretary may determine)
of the amount of assistance provided pursuant to this
paragraph for the project.
``(B) Requirement for non-federal funds.--Not less
than 50 percent of supplemental amounts provided for a
project pursuant to subparagraph (A) shall be from non-
Federal sources. Such supplemental amounts may include
the value of any in-kind contributions, including
donated land, structures, equipment, and other
contributions as the Secretary considers appropriate,
but only if the existence of such in-kind contributions
results in the construction of more dwelling units than
would have been constructed absent such contributions.
``(C) Income eligibility.--Notwithstanding any
other provision of this section, the Secretary shall
provide that, in a project assisted under this
paragraph, a number of dwelling units may be made
available for occupancy by elderly persons who are not
very low-income persons in a number such that the ratio
that the number of dwelling units in the project so
occupied bears to the total number of units in the
project does not exceed the ratio that the amount from
non-Federal sources provided for the project pursuant
to this paragraph bears to the sum of the capital
advances provided for the project under this paragraph
and all supplemental amounts for the project provided
pursuant to this paragraph.''.
SEC. 302. ELIGIBILITY OF FOR-PROFIT LIMITED PARTNERSHIPS.
Section 202(k)(4) of the Housing Act of 1959 (12 U.S.C.
1701q(k)(4)) is amended by adding after and below subparagraph (C) the
following new sentence:
``Such term includes a for-profit limited partnership the sole
general partner of which is an organization meeting the
requirements under subparagraphs (A), (B), and (C) and a
corporation wholly owned by an organization meeting the
requirements under subparagraphs (A), (B), and (C).''.
SEC. 303. MIXED FUNDING SOURCES.
Section 202(h)(6) of the Housing Act of 1959 (12 U.S.C.
1701q(h)(6)) is amended by striking ``non-Federal sources'' and
inserting ``sources other than this section''.
SEC. 304. AUTHORITY TO ACQUIRE STRUCTURES.
Section 202 of the Housing Act of 1959 (12 U.S.C. 1701q) is
amended--
(1) in subsection (b), by striking ``from the Resolution
Trust Corporation''; and
(2) in subsection (h)(2)--
(A) in the heading for subparagraph (A), by
striking ``RTC properties'' and inserting
``Acquisition''; and
(B) by striking ``from the Resolution'' and all
that follows through ``Insurance Act''.
SEC. 305. MIXED-INCOME OCCUPANCY.
(a) In General.--The first sentence of section 202(i)(1) of the
Housing Act of 1959 (12 U.S.C. 1701q(i)(1)) is amended by striking
``and (B)'' and inserting the following: ``(B) notwithstanding clause
(A) and in the case only of a supportive housing project for the
elderly which has a high vacancy level (as such term is defined by the
Secretary, but which shall not include vacancy upon the initial
availability of units in a building), consistent with the purpose of
improving housing opportunities for very low- and low-income elderly
persons; and (C).''.
(b) Availability of Units.--Section 202(i) of the Housing Act of
1959 (12 U.S.C. 1701q(i)) is amended by adding at the end the following
new paragraph:
``(3) Availability of units.--In the case of a supportive
housing project described in subsection (i)(1)(B) that has a
vacant dwelling unit, an owner may not make a dwelling unit
available for occupancy by, nor make any commitment to provide
occupancy in the unit to, a low-income family that is not a
very low-income family unless each eligible very low-income
family that has applied for occupancy in the project has been
offered an opportunity to accept occupancy in a unit in the
project.''.
(b) Conforming Amendments.--Section 202 of the Housing Act of 1959
(12 U.S.C. 1701q) is amended--
(1) in subsection (c)--
(A) in paragraph (1), by inserting after ``elderly
persons'' the following: ``, and for low-income elderly
persons to the extent such occupancy is made available
pursuant to subsection (i)(1)(B),'';
(B) in the first sentence of paragraph (2), by
inserting after ``elderly persons'' the following: ``or
by low-income elderly persons (to the extent such
occupancy is made available pursuant to subsection
(i)(1)(B))''; and
(C) in paragraph (3), by inserting after ``very
low-income person'' the following: ``or a low-income
person (to the extent such occupancy is made available
pursuant to subsection (i)(1)(B))'';
(2) in subsection (d)(1), by inserting after ``elderly
persons'' the following: ``, and low-income elderly persons to
the extent such occupancy is made available pursuant to
subsection (i)(1)(B),''; and
(3) in subsection (k)--
(A) by redesignating paragraphs (3) through (8) as
paragraphs (4) through (9), respectively; and
(B) by inserting after paragraph (2) the following
new paragraph:
``(3) Low-income.--The term `low-income' has the same
meaning given the term `low-income families' under section
3(b)(2) of the United States Housing Act of 1937 (42 U.S.C.
1437a(b)(2)).''.
SEC. 306. USE OF PROJECT RESERVES.
Section 202(j) of the Housing Act of 1959 (12 U.S.C. 1701q(j)) is
amended by adding at the end the following new paragraph:
``(8) Use of project reserves.--Amounts for project
reserves for a project assisted under this section may be used
for costs, subject to reasonable limitations as the Secretary
determines appropriate, for reducing the number of dwelling
units in the project. Such use shall be subject to the approval
of the Secretary to ensure that the use is designed to retrofit
units that are currently obsolete or unmarketable.''.
SEC. 307. COMMERCIAL ACTIVITIES.
Section 202(h)(1) of the Housing Act of 1959 (12 U.S.C.
1701q(h)(1)) is amended by adding at the end the following new
sentence: ``Neither this section nor any other provision of law may be
construed as prohibiting or preventing the location and operation, in a
project assisted under this section, of commercial facilities for the
benefit of residents of the project and the community in which the
project is located.''.
SEC. 308. MIXED FINANCE PILOT PROGRAM.
(a) Authority.--The Secretary of Housing and Urban Development
shall carry out a pilot program under this section to determine the
effectiveness and feasibility of providing assistance under section 202
of the Housing Act of 1959 (12 U.S.C. 1701q) for housing projects that
are used both for supportive housing for the elderly and for other
types of housing, which may include market rate housing.
(b) Scope.--Under the pilot program the Secretary shall provide, to
the extent that sufficient approvable applications for such assistance
are received, assistance in the manner provided under subsection (d)
for not more than five housing projects.
(c) Mixed Use.--The Secretary shall require, for a project to be
assisted under the pilot program--
(1) that a portion of the dwelling units in the project be
reserved for use in accordance with, and subject to, the
requirements applicable to units assisted under section 202 of
the Housing Act of 1959; and
(2) that the remainder of the dwelling units be used for
other purposes.
(d) Financing.--The Secretary may use amounts provided for
assistance under section 202 of the Housing Act of 1959 for assistance
under the pilot program for capital advances in accordance with
subsection (d)(1) of such section and project rental assistance in
accordance with subsection (d)(2) of such section, only for dwelling
units described in subsection (c)(1) of this section. Any assistance
provided pursuant to subsection (d)(1) of such section 202 shall be
provided in the form of a capital advance, subject to repayment as
provided in such subsection, and shall not be structured as a loan. The
Secretary shall take such action as may be necessary to ensure that the
repayment contingency under such subsection is enforceable for projects
assisted under the pilot program and to provide for appropriate
protections of the interests of the Secretary in relation to other
interests in the projects so assisted.
(e) Waiver Authority.--Notwithstanding subsection (c)(1) of this
section, the Secretary may waive the applicability of any provision of
section 202 of the Housing Act of 1959 for any project assisted under
the pilot program under this section as may be appropriate to carry out
the program, except to the extent inconsistent with this section.
SEC. 309. GRANTS FOR CONVERSION OF ELDERLY HOUSING TO ASSISTED LIVING
FACILITIES.
Title II of the Housing Act of 1959 is amended by inserting after
section 202a (12 U.S.C. 1701q-1) the following new section:
``SEC. 202B. GRANTS FOR CONVERSION OF ELDERLY HOUSING TO ASSISTED
LIVING FACILITIES.
``(a) Grant Authority.--The Secretary of Housing and Urban
Development may make grants in accordance with this section to owners
of eligible projects described in subsection (b) for one or both of the
following activities:
``(1) Repairs.--Substantial capital repairs to a project
that are needed to rehabilitate, modernize, or retrofit aging
structures, common areas, or individual dwelling units.
``(2) Conversion.--Activities designed to convert dwelling
units in the eligible project to assisted living facilities for
elderly persons.
``(b) Eligible Projects.--An eligible project described in this
subsection is a multifamily housing project that is--
``(1) described in subparagraph (B), (C), (D), (E), (F), or
(G) of section 683(2) of the Housing and Community Development
Act of 1992 (42 U.S.C. 13641(2)), or (B) only to the extent
amounts of the Department of Agriculture are made available to
the Secretary of Housing and Urban Development for such grants
under this section for such projects, subject to a loan made or
insured under section 515 of the Housing Act of 1949 (42 U.S.C.
1485);
``(2) owned by a private nonprofit organization (as such
term is defined in section 202); and
``(3) designated primarily for occupancy by elderly
persons.
Notwithstanding any other provision of this subsection or this section,
an unused or underutilized commercial property may be considered an
eligible project under this subsection, except that the Secretary may
not provide grants under this section for more three such properties.
For any such projects, any reference under this section to dwelling
units shall be considered to refer to the premises of such properties.
``(c) Applications.--Applications for grants under this section
shall be submitted to the Secretary in accordance with such procedures
as the Secretary shall establish. Such applications shall contain--
``(1) a description of the substantial capital repairs or
the proposed conversion activities for which a grant under this
section is requested;
``(2) the amount of the grant requested to complete the
substantial capital repairs or conversion activities;
``(3) a description of the resources that are expected to
be made available, if any, in conjunction with the grant under
this section; and
``(4) such other information or certifications that the
Secretary determines to be necessary or appropriate.
``(d) Funding for Services.--The Secretary may not make a grant
under this section for conversion activities unless the application
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, which may be provided by third parties.
``(e) Selection Criteria.--The Secretary shall select applications
for grants under this section based upon selection criteria, which
shall be established by the Secretary and shall include--
``(1) in the case of a grant for substantial capital
repairs, the extent to which the project to be repaired is in
need of such repair, including such factors as the age of
improvements to be repaired, and the impact on the health and
safety of residents of failure to make such repairs;
``(2) in the case of a grant for conversion activities, the
extent to which the conversion is likely to provide assisted
living facilities that are needed or are expected to be needed
by the categories of elderly persons that the assisted living
facility is intended to serve, with a special emphasis on very
low-income elderly persons who need assistance with activities
of daily living;
``(3) the inability of the applicant to fund the repairs or
conversion activities from existing financial resources, as
evidenced by the applicant's financial records, including
assets in the applicant's residual receipts account and
reserves for replacement account;
``(4) the extent to which the applicant has evidenced
community support for the repairs or conversion, by such
indicators as letters of support from the local community for
the repairs or conversion and financial contributions from
public and private sources;
``(5) in the case of a grant for conversion activities, the
extent to which the applicant demonstrates a strong commitment
to promoting the autonomy and independence of the elderly
persons that the assisted living facility is intended to serve;
``(6) in the case of a grant for conversion activities, the
quality, completeness, and managerial capability of providing
the services which the assisted living facility intends to
provide to elderly residents, especially in such areas as
meals, 24-hour staffing, and on-site health care; and
``(7) such other criteria as the Secretary determines to be
appropriate to ensure that funds made available under this
section are used effectively.
``(f) Definitions.--For the 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
(12 U.S.C. 1715w(b)); and
``(2) the definitions in section 202(k) shall apply.
``(g) Authorization of Appropriations.--There is authorized to be
appropriated for providing grants under this section such sums as may
be necessary for each of fiscal years 2000, 2001, 2002, 2003, and
2004.''.
SEC. 310. GRANTS FOR CONVERSION OF PUBLIC HOUSING PROJECTS TO ASSISTED
LIVING FACILITIES.
Title I of the United States Housing Act of 1937 (42 U.S.C. 1437 et
seq.) is amended by adding at the end the following new section:
``SEC. 36. GRANTS FOR CONVERSION OF PUBLIC HOUSING TO ASSISTED LIVING
FACILITIES.
``(a) Grant Authority.--The Secretary may make grants in accordance
with this section to public housing agencies for use for activities
designed to convert dwelling units in an eligible projects described in
subsection (b) to assisted living facilities for elderly persons.
``(b) Eligible Projects.--An eligible project described in this
subsection is a public housing project (or a portion thereof) that has
been designated under section 7 for occupancy only by elderly persons.
``(c) Applications.--Applications for grants under this section
shall be submitted to the Secretary in accordance with such procedures
as the Secretary shall establish. Such applications shall contain--
``(1) a description of the proposed conversion activities
for which a grant under this section is requested;
``(2) the amount of the grant requested;
``(3) a description of the resources that are expected to
be made available, if any, in conjunction with the grant under
this section; and
``(4) such other information or certifications that the
Secretary determines to be necessary or appropriate.
``(d) Funding for Services.--The Secretary may not make a grant
under this section unless the application 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.
``(e) Selection Criteria.--The Secretary shall select applications
for grants under this section based upon selection criteria, which
shall be established by the Secretary and shall include--
``(1) the extent to which the conversion is likely to
provide assisted living facilities that are needed or are
expected to be needed by the categories of elderly persons that
the assisted living facility is intended to serve;
``(2) the inability of the public housing agency to fund
the conversion activities from existing financial resources, as
evidenced by the agency's financial records;
``(3) the extent to which the agency has evidenced
community support for the conversion, by such indicators as
letters of support from the local community for the conversion
and financial contributions from public and private sources;
``(4) extent to which the applicant demonstrates a strong
commitment to promoting the autonomy and independence of the
elderly persons that the assisted living facility is intended
to serve;
``(5) the quality, completeness, and managerial capability
of providing the services which the assisted living facility
intends to provide to elderly residents, especially in such
areas as meals, 24-hour staffing, and on-site health care; and
``(6) such other criteria as the Secretary determines to be
appropriate to ensure that funds made available under this
section are used effectively.
``(f) Definition.--For the purposes of this section, the term
`assisted living facility' has the meaning given such term in section
232(b) of the National Housing Act (12 U.S.C. 1715w(b)).
``(g) Authorization of Appropriations.--There is authorized to be
appropriated for providing grants under this section such sums as may
be necessary for each of fiscal years 2000, 2001, 2002, 2003, and
2004.''.
SEC. 311. USE OF SECTION 8 ASSISTANCE FOR ASSISTED LIVING FACILITIES.
(a) Voucher Assistance.--Section 8(o) of the United States Housing
Act of 1937 (42 U.S.C. 1437f(o)) is amended by adding at the end the
following new paragraph:
``(18) Rental assistance for assisted living facilities.--
``(A) In general.--A public housing agency may make
assistance payments on behalf of a family that uses an
assisted living facility as a principal place of
residence and that uses such supportive services made
available in the facility as the agency may require.
Such payments may be made only for covering costs of
rental of the dwelling unit in the assisted living
facility and not for covering any portion of the cost
of residing in such facility that is attributable to
service relating to assisted living.
``(B) Rent calculation.--
``(i) Charges included.--For assistance
pursuant to this paragraph, the rent of the
dwelling unit that is a assisted living
facility with respect to which assistance
payments are made shall include maintenance and
management charges related to the dwelling unit
and tenant-paid utilities. Such rent shall not
include any charges attributable to services
relating to assisted living.
``(ii) Payment standard.--In determining
the monthly assistance that may be paid under
this paragraph on behalf of any family residing
in an assisted living facility, the public
housing agency shall utilize the payment
standard established under paragraph (1), for
the market area in which the assisted living
facility is located, for the applicable size
dwelling unit.
``(iii) Monthly assistance payment.--The
monthly assistance payment for a family
assisted under this paragraph shall be
determined in accordance with paragraph (2)
(using the rent and payment standard for the
dwelling unit as determined in accordance with
this subsection).
``(C) Definition.--For the purposes of this
paragraph, the term `assisted living facility' has the
meaning given that term in section 232(b) of the
National Housing Act (12 U.S.C. 1715w(b)), except that
such a facility may be contained within a portion of a
larger multifamily housing project.''.
(b) Project-Based Assistance.--Section 202b of the Housing Act of
1959, as added by section 2 of this Act, is amended--
(1) by redesignating subsections (f) and (g) as subsections
(g) and (h), respectively; and
(2) by inserting after subsection (e) the following new
subsection:
``(f) Section 8 Project-Based Assistance.--
``(1) Eligibility.--Notwithstanding any other provision of
law, a multifamily project which includes one or more dwelling
units that have been converted to assisted living facilities
using grants made under this section shall be eligible for
project-based assistance under section 8 of the United States
Housing Act of 1937, in the same manner in which the project
would be eligible for such assistance but for the assisted
living facilities in the project.
``(2) Calculation of rent.--For assistance pursuant to this
subsection, the maximum monthly rent of a dwelling unit that is
an assisted living facility with respect to which assistance
payments are made shall not include charges attributable to
services relating to assisted living.''.
SEC. 312. ANNUAL HUD INVENTORY OF ASSISTED HOUSING DESIGNATED FOR
ELDERLY PERSONS.
Subtitle D of title VI of the Housing and Community Development Act
of 1992 (42 U.S.C. 13611 et seq.) is amended by adding at the end the
following new section:
``SEC. 662. ANNUAL INVENTORY OF ASSISTED HOUSING DESIGNATED FOR ELDERLY
PERSONS.
``(a) In General.--The Secretary shall establish and maintain, and
on an annual basis shall update and publish, an inventory of housing
that--
``(1) is assisted under a program of the Department of
Housing and Urban Development, including all federally assisted
housing; and
``(2) is designated, in whole or in part, for occupancy by
elderly families or disabled families, or both.
``(b) Contents.--The inventory required under this section shall
identify housing described in subsection (a) and the number of dwelling
units in such housing that--
``(1) are in projects designated for occupancy only by
elderly families;
``(2) are in projects designated for occupancy only by
disabled families;
``(3) contain special features or modifications designed to
accommodate persons with disabilities and are in projects
designated for occupancy only by disabled families;
``(4) are in projects for which a specific percentage or
number of the dwelling units are designated for occupancy only
by elderly families;
``(5) are in projects for which a specific percentage or
number of the dwelling units are designated for occupancy only
by disabled families; and
``(6) are in projects designed for occupancy only by both
elderly or disabled families.
``(c) Publication.--The Secretary shall annually publish the
inventory required under this section in the Federal Register and shall
make the inventory available to the public by posting on a World Wide
Web site of the Department.''.
SEC. 313. TREATMENT OF APPLICATIONS.
(a) In General.--Notwithstanding any other provision of law or any
regulation of the Secretary of Housing and Urban Development, in the
case of any denial of an application for assistance under section 202
of the Housing Act of 1959 (12 U.S.C. 1701q) for failure to timely
provide information required by the Secretary, the Secretary shall
notify the applicant of the failure and provide the applicant an
opportunity to show that the failure was due to the failure of a third
party to provide information under the control of the third party. If
the applicant demonstrates, within a reasonable period of time after
notification of such failure, that the applicant did not have such
information but requested the timely provision of such information by
the third party, the Secretary may not deny the application on the
grounds of failure to timely provide such information.
(b) Applicability.--This section shall have no force or effect
after the expiration of the 12-month period beginning on the date of
the enactment of this Act.
Subtitle B--Housing for Persons With Disabilities
SEC. 321. MATCHING GRANT PROGRAM.
Section 811 of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 8013) is amended--
(1) in subsection (b)(2)(A), by inserting ``or through
matching grants under subsection (d)(5)'' after ``subsection
(d)(1)''; and
(2) in subsection (d), by adding at the end the following
new paragraph:
``(5) Matching grants.--
``(A) In general.--Amounts made available for
assistance under this paragraph shall be used only for
capital advances in accordance with paragraph (1),
except that the Secretary shall require that, as a
condition of providing assistance under this paragraph
for a project, the applicant for assistance shall
supplement the assistance with amounts from sources
other than this section in an amount that is not less
than 25 to 50 percent (as the Secretary may determine)
of the amount of assistance provided pursuant to this
paragraph for the project.
``(B) Requirement for non-federal funds.--Not less
than 50 percent of supplemental amounts provided for a
project pursuant to subparagraph (A) shall be from non-
Federal sources. Such supplemental amounts may include
the value of any in-kind contributions, including
donated land, structures, equipment, and other
contributions as the Secretary considers appropriate,
but only if the existence of such in-kind contributions
results in the construction of more dwelling units than
would have been constructed absent such contributions.
``(C) Income eligibility.--Notwithstanding any
other provision of this section, the Secretary shall
provide that, in a project assisted under this
paragraph, a number of dwelling units may be made
available for occupancy by persons with disabilities
who are not very low-income persons in a number such
that the ration that the number of dwelling units in
the project so occupied bears to the total number of
units in the project does not exceed the ratio that the
amount from non-Federal sources provided for the
project pursuant to this paragraph bears to the sum of
the capital advances provided for the project under
this paragraph and all supplemental amounts for the
project provided pursuant to this paragraph.''.
SEC. 322. ELIGIBILITY OF FOR-PROFIT LIMITED PARTNERSHIPS.
Section 811(k)(6) of the Housing Act of 1959 (42 U.S.C. 8013(k)(6))
is amended by adding after and below subparagraph (D) the following new
sentence:
``Such term includes a for-profit limited partnership the sole
general partner of which is an organization meeting the
requirements under subparagraphs (A), (B), (C), and (D) and a
corporation wholly owned by an organization meeting the
requirements under subparagraphs (A), (B), (C), and (D).''.
SEC. 323. MIXED FUNDING SOURCES.
Section 811(h)(5) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 8013(h)(5)) is amended by striking ``non-Federal
sources'' and inserting ``sources other than this section''.
SEC. 324. TENANT-BASED ASSISTANCE.
Section 811 of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 8013) is amended--
(1) in subsection (d), by striking paragraph (4) and
inserting the following new paragraph:
``(4) Tenant-based rental assistance.--
``(A) Administering entities.--Tenant-based rental
assistance provided under subsection (b)(1) may be
provided only through a public housing agency that has
submitted and had approved an plan under section 7(d)
of the United States Housing Act of 1937 (42 U.S.C.
1437e(d)) that provides for such assistance, or through
a private nonprofit organization. A public housing
agency shall be eligible to apply under this section
only for the purposes of providing such tenant-based
rental assistance.
``(B) Program rules.--Tenant-based rental
assistance under subsection (b)(1) shall be made
available to eligible persons with disabilities and
administered under the same rules that govern tenant-
based rental assistance made available under section 8
of the United States Housing Act of 1937, except that
the Secretary may waive or modify such rules, but only
to the extent necessary to provide for administering
such assistance under subsection (b)(1) through private
nonprofit organizations rather than through public
housing agencies.
``(C) Allocation of assistance.--In determining the
amount of assistance provided under subsection (b)(1)
for a private nonprofit organization or public housing
agency, the Secretary shall consider the needs and
capabilities of the organization or agency, in the case
of a public housing agency, as described in the plan
for the agency under section 7 of the United States
Housing Act of 1937.''; and
(2) in subsection (l)(1)--
(A) by striking ``subsection (b)'' and inserting
``subsection (b)(2)'';
(B) by striking the last comma and all that follows
through ``subsection (n)''; and
(C) by inserting after the last period the
following new sentence: ``Notwithstanding any other
provision of this section, the Secretary may use not
more than 25 percent of the total amounts made
available for assistance under this section for any
fiscal year for tenant-based rental assistance under
subsection (b)(1) for persons with disabilities, and no
authority of the Secretary to waive provisions of this
section may be used to alter the percentage limitation
under this sentence.''.
SEC. 325. PROJECT SIZE.
(a) Limitation.--Section 811 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 8013) is amended--
(1) in subsection (k)(4), by inserting ``, subject to the
limitation under subsection (h)(6)'' after ``prescribe''; and
(2) in subsection (l), by adding at the end the following
new paragraph:
``(4) Size limitation.--Of any amounts made available for
any fiscal year and used for capital advances or project rental
assistance under paragraphs (1) and (2) of subsection (d), not
more than 25 percent may be used for supportive housing which
contains more than 24 separate dwelling units.''.
(b) Study.--Not later than the expiration of the 3-month period
beginning on the date of the enactment of this Act, the Secretary of
Housing and Urban Development shall conduct a study and submit a report
to the Congress regarding--
(1) the extent to which the authority of the Secretary
under section 811(k)(4) of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 8013(k)(4)), as in effect
immediately before the enactment of this Act, has been used in
each year since 1990 to provide for assistance under such
section for supportive housing for persons with disabilities
having more than 24 separate dwelling units;
(2) the per-unit costs of, and the benefits and problems
associated with, providing such housing in projects having 8 or
less dwelling units, 8 to 24 units, and more than 24 units; and
(3) the per-unit costs of, and the benefits and problems
associated with providing housing under section 202 of the
Housing Act of 1959 (12 U.S.C. 1701q) in projects having 30 to
50 dwelling units, in projects having more than 50 but not more
than 80 dwelling units, in projects having more than 80 but not
more than 120 dwelling units, and in projects having more than
120 dwelling units, but the study shall also examine the social
considerations afforded by smaller and moderate-size
developments and shall not be limited to economic factors.
SEC. 326. USE OF PROJECT RESERVES.
Section 811(j) of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 8013(j)) is amended by adding at the end the following
new paragraph:
``(7) Use of project reserves.--Amounts for project
reserves for a project assisted under this section may be used
for costs, subject to reasonable limitations as the Secretary
determines appropriate, for reducing the number of dwelling
units in the project. Such use shall be subject to the approval
of the Secretary to ensure that the use is designed to retrofit
units that are currently obsolete or unmarketable.''.
SEC. 327. COMMERCIAL ACTIVITIES.
Section 811(h)(1) of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 8013(h)(1)) is amended by adding at the end the
following new sentence: ``Neither this section nor any other provision
of law may be construed as prohibiting or preventing the location and
operation, in a project assisted under this section, of commercial
facilities for the benefit of residents of the project and the
community in which the project is located.''.
Subtitle C--Other Provisions
SEC. 341. SERVICE COORDINATORS.
(a) Increased Flexibility for Use of Service Coordinators in
Certain Federally Assisted Housing.--Section 676 of the Housing and
Community Development Act of 1992 (42 U.S.C. 13632) is amended--
(1) in the section heading, by striking ``multifamily
housing assisted under the national housing act'' and inserting
``certain federally assisted housing'';
(2) in subsection (a)--
(A) in the first sentence, by striking ``(E) and
(F)'' and inserting ``(B), (C), (D), (E), (F), and
(G)''; and
(B) in the last sentence--
(i) by striking ``section 661'' and
inserting ``section 671''; and
(ii) by adding after the period at the end
the following new sentence: ``A service
coordinator funded with a grant under this
section for a project may provide services to
low-income elderly or disabled families living
in the vicinity of such project.'';
(3) in subsection (d)--
(A) by striking ``(E) or (F)'' and inserting ``(B),
(C), (D), (E), (F), or (G)''; and
(B) by striking ``section 661'' and inserting
``section 671''; and
(4) by striking subsection (c) and redesignating subsection
(d) (as amended by paragraph (3) of this subsection) as
subsection (c).
(b) Requirement To Provide Service Coordinators.--Section 671 of
the Housing and Community Development Act of 1992 (42 U.S.C. 13631) is
amended--
(1) in the first sentence of subsection (a), by striking
``to carry out this subtitle pursuant to the amendments made by
this subtitle'' and inserting the following: ``for providing
service coordinators under this section'';
(2) in subsection (d), by inserting ``)'' after ``section
683(2)''; and
(3) by adding at the end following new subsection:
``(e) Services for Low-Income Elderly or Disabled Families Residing
in Vicinity of Certain Projects.--To the extent only that this section
applies to service coordinators for covered federally assisted housing
described in subparagraphs (B), (C), (D), (E), (F), and (G) of section
683(2), any reference in this section to elderly or disabled residents
of a project shall be construed to include low-income elderly or
disabled families living in the vicinity of such project.''.
(c) Protection Against Telemarketing Fraud.--
(1) Supportive housing for the elderly.--The first sentence
of section 202(g)(1) of the Housing Act of 1959 (12 U.S.C.
1701q(g)(1)) is amended by striking ``and (F)'' and inserting
the following: ``(F) providing education and outreach regarding
telemarketing fraud, in accordance with the standards issued
under section 671(f) of the Housing and Community Development
Act of 1992 (42 U.S.C. 13631(f)); and (G)''.
(2) Other federally assisted housing.--Section 671 of the
Housing and Community Development Act of 1992 (42 U.S.C.
13631), as amended by subsection (b) of this section, is
further amended--
(A) in the first sentence of subsection (c), by
inserting after ``response,'' the following:
``providing education and outreach regarding
telemarketing fraud, in accordance with the standards
issued under subsection (f),''; and
(B) by adding at the end the following new
subsection:
``(f) Protection Against Telemarketing Fraud.--
``(1) In general.--The Secretary, in coordination with the
Secretary of Health and Human Services, shall establish
standards for service coordinators in federally assisted
housing who are providing education and outreach to elderly
persons residing in such housing regarding telemarketing fraud.
The standards shall be designed to ensure that such education
and outreach informs such elderly persons of the dangers of
telemarketing fraud and facilitates the investigation and
prosecution of telemarketers engaging in fraud against such
residents.
``(2) Contents.--The standards established under this
subsection shall require that any such education and outreach
be provided in a manner that--
``(A) informs such residents of (i) the prevalence
of telemarketing fraud targeted against elderly
persons; (ii) how telemarketing fraud works; (iii) how
to identify telemarketing fraud; (iv) how to protect
themselves against telemarketing fraud, including an
explanation of the dangers of providing bank account,
credit card, or other financial or personal information
over the telephone to unsolicited callers; (v) how to
report suspected attempts at telemarketing fraud; and
(vi) their consumer protection rights under Federal
law;
``(B) provides such other information as the
Secretary considers necessary to protect such residents
against fraudulent telemarketing; and
``(C) disseminates the information provided by
appropriate means, and in determining such appropriate
means, the Secretary shall consider on-site
presentations at federally assisted housing, public
service announcements, a printed manual or pamphlet, an
Internet website, and telephone outreach to residents
whose names appear on `mooch lists' confiscated from
fraudulent telemarketers.''.
SEC. 342. COMMISSION ON AFFORDABLE HOUSING AND HEALTH CARE FACILITY
NEEDS IN THE 21ST CENTURY.
(a) Establishment.--There is hereby established a commission to be
known as the Commission on Affordable Housing and Health Care Facility
Needs in the 21st Century (in this section referred to as the
``Commission''.
(b) Study.--The duty of the Commission shall be to conduct a study
that--
(1) compiles and interprets information regarding the
expected increase in the population of persons 62 years of age
or older, particularly information regarding distribution of
income levels, homeownership and home equity rates, and degree
or extent of health and independence of living;
(2) provides an estimate of the future needs of seniors for
affordable housing and assisted living and health care
facilities;
(3) provides a comparison of estimate of such future needs
with an estimate of the housing and facilities expected to be
provided under existing public programs, and identifies
possible actions or initiatives that may assist in providing
affordable housing and assisted living and health care
facilities to meet such expected needs;
(4) identifies and analyzes methods of encouraging
increased private sector participation, investment, and capital
formation in affordable housing and assisted living and health
care facilities for seniors through partnerships between public
and private entities and other creative strategies;
(5) analyzes the costs and benefits of comprehensive aging-
in-place strategies, taking into consideration physical and
mental well-being and the importance of coordination between
shelter and supportive services;
(6) identifies and analyzes methods of promoting a more
comprehensive approach to dealing with housing and supportive
service issues involved in aging and the multiple governmental
agencies involved in such issues, including the Department of
Housing and Urban Development and the Department of Health and
Human Services; and
(7) examines how to establish intergenerational learning
and care centers and living arrangements, in particular to
facilitate appropriate environments for families consisting
only of children and a grandparent or grandparents who are the
head of the household.
(c) Membership.--
(1) Number and Appointment.--The Commission shall be
composed of 14 members, appointed not later than January 1,
2000, as follows:
(A) Two co-chairpersons, of whom--
(i) one co-chairperson shall be appointed
by a committee consisting of the chairman of
the Subcommittee on Housing and Community
Opportunities of the House of Representatives
and the chairman of the Subcommittee on Housing
and Transportation of the Senate, and the
chairmen of the Subcommittees on the
Departments of Veterans Affairs and Housing and
Urban Development, and Independent Agencies of
the Committees on Appropriations of the House
of Representatives and the Senate; and
(ii) one co-chairperson shall be appointed
by a committee consisting of the ranking
minority member of the Subcommittee on Housing
and Community Opportunities of the House of
Representatives and the ranking minority member
of the Subcommittee on Housing and
Transportation of the Senate, and the ranking
minority members of the Subcommittees on the
Departments of Veterans Affairs and Housing and
Urban Development, and Independent Agencies of
the Committees on Appropriations of the House
of Representatives and the Senate.
(B) Six members appointed by the Chairman and
Ranking Minority Member of the Committee on Banking and
Financial Services of the House of Representatives and
the Chairman and Ranking Minority Member of the
Committee on Appropriations of the House of
Representatives.
(C) Six members appointed by the Chairman and
Ranking Minority Member of the Committee on Banking,
Housing, and Urban Affairs of the Senate and the
Chairman and Ranking Minority Member of the Committee
on Appropriations of the Senate.
(2) Qualifications.--Appointees should have proven
expertise in directing, assembling, or applying capital
resources from a variety of sources to the successful
development of affordable housing, assisted living facilities,
or health care facilities.
(3) Vacancies.--Any vacancy on the Commission shall not
affect its powers and shall be filled in the manner in which
the original appointment was made.
(4) Chairpersons.--The members appointed pursuant to
paragraph (1)(A) shall serve as co-chairpersons of the
Commission.
(5) Prohibition of pay.--Members of the Commission shall
serve without pay.
(6) Travel expenses.--Each member of the Commission shall
receive travel expenses, including per diem in lieu of
subsistence, in accordance with sections 5702 and 5703 of title
5, United States Code.
(7) Quorum.--A majority of the members of the Commission
shall constitute a quorum but a lesser number may hold
hearings.
(8) Meetings.--The Commission shall meet at the call of the
Chairpersons.
(d) Director and Staff.--
(1) Director.--The Commission shall have a Director who
shall be appointed by the Chairperson. The Director shall be
paid at a rate not to exceed the rate of basic pay payable for
level V of the Executive Schedule.
(2) Staff.--The Commission may appoint personnel as
appropriate. The staff of the Commission shall be appointed
subject to the provisions of title 5, United States Code,
governing appointments in the competitive service, and shall be
paid in accordance with the provisions of chapter 51 and
subchapter III of chapter 53 of that title relating to
classification and General Schedule pay rates.
(3) Experts and consultants.--The Commission may procure
temporary and intermittent services under section 3109(b) of
title 5, United States Code, but at rates for individuals not
to exceed the daily equivalent of the maximum annual rate of
basic pay payable for the General Schedule.
(4) Staff of federal agencies.--Upon request of the
Commission, the head of any Federal department or agency may
detail, on a reimbursable basis, any of the personnel of that
department or agency to the Commission to assist it in carrying
out its duties under this Act.
(e) Powers.--
(1) Hearings and sessions.--The Commission may, for the
purpose of carrying out this section, hold hearings, sit and
act at times and places, take testimony, and receive evidence
as the Commission considers appropriate.
(2) Powers of members and agents.--Any member or agent of
the Commission may, if authorized by the Commission, take any
action which the Commission is authorized to take by this
section.
(3) Obtaining official data.--The Commission may secure
directly from any department or agency of the United States
information necessary to enable it to carry out this Act. Upon
request of the Chairpersons of the Commission, the head of that
department or agency shall furnish that information to the
Commission.
(4) Gifts, bequests, and devises.--The Commission may
accept, use, and dispose of gifts, bequests, or devises of
services or property, both real and personal, for the purpose
of aiding or facilitating the work of the Commission. Gifts,
bequests, or devises of money and proceeds from sales of other
property received as gifts, bequests, or devises shall be
deposited in the Treasury and shall be available for
disbursement upon order of the Commission.
(5) Mails.--The Commission may use the United States mails
in the same manner and under the same conditions as other
departments and agencies of the United States.
(6) Administrative support services.--Upon the request of
the Commission, the Administrator of General Services shall
provide to the Commission, on a reimbursable basis, the
administrative support services necessary for the Commission to
carry out its responsibilities under this section.
(7) Contract Authority.--The Commission may contract with
and compensate government and private agencies or persons for
services, without regard to section 3709 of the Revised
Statutes (41 U.S.C. 5).
(f) Report.--The Commission shall submit to the Committees on
Banking and Financial Services and Appropriations of the House of
Representatives and the Committees on Banking, Housing, and Urban
Affairs and Appropriations of the Senate, a final report not later than
December 31, 2001. The report shall contain a detailed statement of the
findings and conclusions of the Commission with respect to the study
conducted under subsection (b), together with its recommendations for
legislation, administrative actions, and any other actions the
Commission considers appropriate.
(g) Funding.--Of any amounts appropriated for fiscal year 2000 to
carry out title V of the Housing and Urban Development Act of 1970 (12
U.S.C. 1701z-1 et seq.) $500,000 shall be available to the Commission
for carrying out this section.
(h) Termination.--The Commission shall terminate on June 30, 2002.
Section 14(a)(2)(B) of the Federal Advisory Committee Act (5 U.S.C.
App.; relating to the termination of advisory committees) shall not
apply to the Commission.
TITLE IV--RENEWAL OF EXPIRING RENTAL ASSISTANCE CONTRACTS AND
PROTECTION OF RESIDENTS
SEC. 401. FINDINGS AND PURPOSE.
(a) Findings.--The Congress finds that--
(1) there exists throughout the United States a need for
decent, safe and affordable housing;
(2) affordable housing is critical to the well-being of
seniors, persons with disabilities, and vulnerable families;
(3) an unprecedented number of contracts for Federal rental
assistance are expiring now and will expire in the near future;
(4) a significant number of private owners of affordable
housing developments are choosing to not renew their subsidy
contracts with the Federal Government;
(5) in cases where assistance contracts are not renewed,
rent levels in the affected developments may rise dramatically;
(6) a significant number of residents in these developments
are seniors or persons with disabilities or are otherwise
vulnerable because of scarcity of available affordable housing
in the neighborhood, and have little or no means of paying
additional rent from personal income, putting at risk what have
been their homes for almost a quarter of a century; and
(7) the Federal Government should continue to work to
ensure that those least able to provide for themselves enjoy
the protection and welfare of the people of the United States.
(b) Purpose.--The purpose of this title is to protect seniors,
persons with disabilities, and other vulnerable residents of affordable
housing and to help provide those residents with peace of mind and
security for living--
(1) by providing greater rental assistance flexibility to
ensure that vulnerable populations are not forced to move from
their homes when rent levels rise; and
(2) where appropriate, by encouraging private owners of
affordable housing developments to continue serving low-income
families by providing appropriate levels of Federal resources,
by allowing greater flexibility for refinancing, and by
ensuring more effective administration by the Federal
Government of rental assistance contract renegotiations.
SEC. 402. RENEWAL OF EXPIRING CONTRACTS AND ENHANCED VOUCHERS FOR
PROJECT RESIDENTS.
(a) In General.--Section 524 of the Multifamily Assisted Housing
Reform and Affordability Act of 1997 (42 U.S.C. 1437f note) is amended
to read as follows:
``SEC. 524. RENEWAL OF EXPIRING PROJECT-BASED SECTION 8 CONTRACTS.
``(a) In General.--
``(1) Renewal.--Subject to paragraph (2), upon termination
or expiration of a contract for project-based assistance under
section 8 for a multifamily housing project (and
notwithstanding section 8(v) of the United States Housing Act
of 1937 for loan management assistance), the Secretary shall,
at the request of the owner of the project and to the extent
sufficient amounts are made available in appropriation Acts,
use amounts available for the renewal of assistance under
section 8 of such Act to provide such assistance for the
project. The assistance shall be provided under a contract
having such terms and conditions as the Secretary considers
appropriate, subject to the requirements of this section. This
section shall not require contract renewal for a project that
is eligible under this subtitle for a mortgage restructuring
and rental assistance sufficiency plan, if there is no approved
plan for the project and the Secretary determines that such an
approved plan is necessary.
``(2) Prohibition on renewal.--Notwithstanding part 24 of
title 24 of the Code of Federal Regulations, the Secretary may
elect not to renew assistance for a project otherwise required
to be renewed under paragraph (1) or provide comparable
benefits under paragraph (1) or (2) of subsection (e) for a
project described in either such paragraph, if the Secretary
determines that a violation under paragraph (1) through (4) of
section 516(a) has occurred with respect to the project. For
purposes of such a determination, the provisions of section 516
shall apply to a project under this section in the same manner
and to the same extent that the provisions of such section
apply to eligible multifamily housing projects, except that the
Secretary shall make the determination under section 516(a)(4).
``(3) Contract term for mark-up-to-market contracts.--In
the case of an expiring or terminating contract that has rent
levels less than comparable market rents for the market area,
if the rent levels under the renewal contract under this
section are equal to comparable market rents for the market
area, the contract shall have a term of not less than 5 years,
subject to the availability of sufficient amounts in
appropriation Acts.
``(4) Renewal rents.--Except as provided in subsection (b),
the contract for assistance shall provide assistance at the
following rent levels:
``(A) Market rents.--At the request of the owner of
the project, at rent levels equal to the lesser of
comparable market rents for the market area or 150
percent of the fair market rents, in the case only of a
project that--
``(i) has rent levels under the expiring or
terminating contract that do not exceed such
comparable market rents;
``(ii) does not have a low- and moderate-
income use restriction that can not be
eliminated by unilateral action by the owner;
``(iii) is decent, safe, and sanitary
housing, as determined by the Secretary;
``(iv) is not--
``(I) owned by a nonprofit entity;
``(II) subject to a contract for
moderate rehabilitation assistance
under section 8(e)(2) of the United
States Housing Act of 1937, as in
effect before October 1, 1991; or
``(III) a project for which the
public housing agency provided voucher
assistance to one or more of the
tenants after the owner has provided
notice of termination of the contract
covering the tenant's unit; and
``(v) has units assisted under the contract
for which the comparable market rent exceeds
110 percent of the fair market rent.
The Secretary may adjust the percentages of fair market
rent (as specified in the matter preceding clause (i)
and in clause (v)), but only upon a determination and
written notification to the Congress within 10 days of
making such determination, that such adjustment is
necessary to ensure that this subparagraph covers
projects with a high risk of nonrenewal of expiring
contracts for project-based assistance.
``(B) Reduction to market rents.--In the case of a
project that has rent levels under the expiring or
terminating contract that exceed comparable market
rents for the market area, at rent levels equal to such
comparable market rents.
``(C) Rents not exceeding market rents.--In the
case of a project that is not subject to subparagraph
(A) or (B), at rent levels that--
``(i) are not less than the existing rents
under the terminated or expiring contract, as
adjusted by an operating cost adjustment factor
established by the Secretary (which shall not
result in a negative adjustment), if such
adjusted rents do not exceed comparable market
rents for the market area; and
``(ii) do not exceed comparable market
rents for the market area.
In determining the rent level for a contract under this
subparagraph, the Secretary shall approve rents
sufficient to cover budget-based cost increases and
shall give greater consideration to providing rent at a
level up to comparable market rents for the market area
based on the number of the criteria under clauses (i)
through (iv) of subparagraph (D) that the project
meets.
``(D) Waiver of 150 percent limitation.--
Notwithstanding subparagraph (A), at rent levels up to
comparable market rents for the market area, in the
case of a project that meets the requirements under
clauses (i) through (v) of subparagraph (A) and--
``(i) has residents who are a particularly
vulnerable population, as demonstrated by a
high percentage of units being rented to
elderly families, disabled families, or large
families;
``(ii) is located in an area in which
tenant-based assistance would be difficult to
use, as demonstrated by a low vacancy rate for
affordable housing, a high turnback rate for
vouchers, or a lack of comparable rental
housing;
``(iii) is a high priority for the local
community, as demonstrated by a contribution of
State or local funds to the property; or
``(iv) is primarily occupied by elderly or
disabled families.
In determining the rent level for a contract under this
subparagraph, the Secretary shall approve rents
sufficient to cover budget-based cost increases and
shall give greater consideration to providing rent at a
level up to comparable market rents for the market area
based on the number of the criteria under clauses (i)
through (iv) that the project meets.
``(5) Comparable market rents and comparison with fair
market rents.--The Secretary shall prescribe the method for
determining comparable market rent by comparison with rents
charged for comparable properties (as such term is defined in
section 512), which may include appropriate adjustments for
utility allowances and adjustments to reflect the value of any
subsidy (other than section 8 assistance) provided by the
Department of Housing and Urban Development.
``(b) Exception Rents.--
``(1) Renewal.--In the case of a multifamily housing
project described in paragraph (2), pursuant to the request of
the owner of the project, the contract for assistance for the
project pursuant to subsection (a) shall provide assistance at
the lesser of following rent levels:
``(A) Adjusted existing rents.--The existing rents
under the expiring contract, as adjusted by an
operating cost adjustment factor established by the
Secretary (which shall not result in a negative
adjustment).
``(B) Budget-based rents.--Subject to a
determination by the Secretary that a rent level under
this subparagraph is appropriate for a project, a rent
level that provides income sufficient to support a
budget-based rent (including a budget-based rent
adjustment if justified by reasonable and expected
operating expenses).
``(2) Projects covered.--A multifamily housing project
described in this paragraph is an multifamily housing project
that--
``(A) is not an eligible multifamily housing
project under section 512(2); or
``(B) is exempt from mortgage restructuring under
this subtitle pursuant to section 514(h).
``(c) Rent Adjustments After Renewal of Contract.--
``(1) Required.--After the initial renewal of a contract
for assistance under section 8 of the United States Housing Act
of 1937 pursuant to subsection (a), (b), or (e)(2), the
Secretary shall annually adjust the rents using an operating
cost adjustment factor established by the Secretary (which
shall not result in a negative adjustment) or, upon the request
of the owner and subject to approval of the Secretary, on a
budget basis. In the case of projects with contracts renewed
pursuant to subsection (a) or pursuant to subsection (e)(2) at
rent levels equal to comparable market rents for the market
area, at the expiration of each 5-year period, the Secretary
shall compare existing rents with comparable market rents for
the market area and may make any adjustments in the rent
necessary to maintain the contract rents at a level not greater
than comparable market rents or to increase rents to comparable
market rents.
``(2) Discretionary.--In addition to review and adjustment
required under paragraph (1), in the case of projects with
contracts renewed pursuant to subsection (a) or pursuant to
subsection (e)(2) at rent levels equal to comparable market
rents for the market area, the Secretary may, at the discretion
of the Secretary but only once within each 5-year period
referred to in paragraph (1), conduct a comparison of rents for
a project and adjust the rents accordingly to maintain the
contract rents at a level not greater than comparable market
rents or to increase rents to comparable market rents.
``(d) Enhanced Vouchers Upon Contract Expiration.--
``(1) In general.--In the case of a contract for project-
based assistance under section 8 for a covered project that is
not renewed under subsection (a) or (b) of this section (or any
other authority), to the extent that amounts for assistance
under this subsection are provided in advance in appropriation
Acts, upon the date of the expiration of such contract the
Secretary shall make enhanced voucher assistance under this
subsection available on behalf of each low-income family who,
upon the date of such expiration, is residing in an assisted
dwelling unit in the covered project.
``(2) Enhanced assistance.--Enhanced voucher assistance
under this subsection for a family shall be voucher assistance
under section 8(o) of the United States Housing Act of 1937 (42
U.S.C. 1437f(o)), except that under such enhanced voucher
assistance--
``(A) during any period that the assisted family
continues residing in the covered project in which the
family was residing on the date of the expiration of
such contract and the rent for the dwelling unit of the
family in such project exceeds the applicable payment
standard established pursuant to section 8(o) for the
unit, the amount of rental assistance provided on
behalf of the family shall be determined using a
payment standard that is equal to the rent for the
dwelling unit (as such rent may be increased from time
to time), subject to paragraph (10)(A) of such section
8(o); and
``(B) subparagraph (A) of this paragraph shall not
apply and the payment standard for the dwelling unit
occupied by the family shall be determined in
accordance with section 8(o) if--
``(i) the assisted family moves, at any
time, from such covered project; or
``(ii) the voucher is made available for
use by any family other than the original
family on behalf of whom the voucher was
provided pursuant to paragraph (1).
``(3) Definitions.--For purposes of this subsection, the
following definitions shall apply:
``(A) Assisted dwelling unit.--The term `assisted
dwelling unit' means a dwelling unit that--
``(i) is in a covered project; and
``(ii) is covered by rental assistance
provided under the contract for project-based
assistance for the covered project.
``(B) Covered project.--The term `covered project'
means any housing that--
``(i) consists of more than four dwelling
units;
``(ii) is covered in whole or in part by a
contract for project-based assistance under--
``(I) the new construction or
substantial rehabilitation program
under section 8(b)(2) of the United
States Housing Act of 1937 (as in
effect before October 1, 1983);
``(II) the property disposition
program under section 8(b) of the
United States Housing Act of 1937;
``(III) the moderate rehabilitation
program under section 8(e)(2) of the
United States Housing Act of 1937 (as
in effect before October 1, 1991);
``(IV) the loan management
assistance program under section 8 of
the United States Housing Act of 1937;
``(V) section 23 of the United
States Housing Act of 1937 (as in
effect before January 1, 1975);
``(VI) the rent supplement program
under section 101 of the Housing and
Urban Development Act of 1965; or
``(VII) section 8 of the United
States Housing Act of 1937, following
conversion from assistance under
section 101 of the Housing and Urban
Development Act of 1965,
which contract will (under its own terms)
expire during the period consisting of fiscal
years 2000 through 2004; and
``(iii) is not housing for which residents
are eligible for enhanced voucher assistance as
provided, pursuant to the `Preserving Existing
Housing Investment' account in the Departments
of Veterans Affairs and Housing and Urban
Development, and Independent Agencies
Appropriations Act, 1997 (Public Law 104-204;
110 Stat. 2884) or any other subsequently
enacted provision of law, in lieu of any
benefits under section 223 of the Low-Income
Housing Preservation and Resident Homeownership
Act of 1990 (12 U.S.C. 4113).
``(4) Authorization of appropriations.--There are
authorized to be appropriated for each of fiscal years 2000,
2001, 2002, 2003, and 2004 such sums as may be necessary for
enhanced voucher assistance under this subsection.
``(e) Contractual Commitments Under Preservation Laws.--Except as
provided in subsection (a)(2) and notwithstanding any other provision
of this subtitle, the following shall apply:
``(1) Preservation projects.--Upon expiration of a contract
for assistance under section 8 for a project that is subject to
an approved plan of action under the Emergency Low Income
Housing Preservation Act of 1987 (12 U.S.C. 1715l note) or the
Low-Income Housing Preservation and Resident Homeownership Act
of 1990 (12 U.S.C. 4101 et seq.), to the extent sufficient
amounts are made available in appropriation Acts, the Secretary
shall provide to the owner benefits comparable to those
provided under such plan of action, including distributions,
rent increase procedures, and duration of low-income
affordability restrictions. This paragraph shall apply to
projects with contracts expiring before, on, or after the date
of the enactment of this section.
``(2) Demonstration projects.--
``(A) In general.--Upon expiration of a contract
for assistance under section 8 for a project entered
into pursuant to any authority specified in
subparagraph (B) for which the Secretary determines
that debt restructuring is inappropriate, the Secretary
shall, at the request of the owner of the project and
to the extent sufficient amounts are made available in
appropriation Acts, provide benefits to the owner
comparable to those provided under such contract,
including annual distributions, rent increase
procedures, and duration of low-income affordability
restrictions. This paragraph shall apply to projects
with contracts expiring before, on, or after the date
of the enactment of this section.
``(B) Demonstration programs.--The authority
specified in this subparagraph is the authority under--
``(i) section 210 of the Departments of
Veterans Affairs and Housing and Urban
Development, and Independent Agencies
Appropriations Act, 1996 (Public Law 104-134;
110 Stat. 1321-285; 42 U.S.C. 1437f note);
``(ii) section 212 of the Departments of
Veterans Affairs and Housing and Urban
Development, and Independent Agencies
Appropriations Act, 1997 (Public Law 104-204;
110 Stat. 2897; 42 U.S.C. 1437f note); and
``(iii) either of such sections, pursuant
to any provision of this title.
``(f) Preemption of Conflicting State Laws Limiting
Distributions.--No State or political subdivision of a State may
establish, continue in effect, or enforce any law or regulation that
limits or restricts, to an amount that is less than the amount provided
for under the regulations of the Secretary establishing allowable
project distributions to provide a return on investment, the amount of
surplus funds accruing after the date of the enactment of this section
that may be distributed from any project assisted under a contract for
rental assistance renewed under any provision of this section to the
owner of the project. This subsection may not be construed to provide
for, allow, or result in the release or termination, for any project,
of any low- or moderate-income use restrictions that can not be
eliminated by unilateral action of the owner of the project.
``(g) Rule of Construction.--Expiring contracts for moderate
rehabilitation assistance under section 8(e)(2) of the United States
Housing Act of 1937, as in effect before October 1, 1991, shall be
subject to renewal under the provisions of this section and such
renewal contract may not be considered, construed, or administered as
providing moderate rehabilitation assistance under such section
8(e)(2), except that the Secretary may provide such assistance in a
manner, and subject to such rules and procedures, as the Secretary may
designate. If the owner of a project with such an expiring contract
requests renewal of the contract, the Secretary shall renew the
expiring contract, subject to the provisions of this section, within 6
months of the date of such expiration, notwithstanding whether any
tenant-based rental assistance has been provided to tenants of the
project. This subsection shall apply to projects with contracts
expiring before, on, or after the date of the enactment of this
section.
``(h) Applicability.--Except to the extent otherwise specifically
provided in this section, this section shall apply with respect to any
multifamily housing project having a contract for project-based
assistance under section 8 that terminates or expires during fiscal
year 2000 or thereafter.''.
(b) Definition of Eligible Multifamily Housing Project.--Section
512(2) of the Multifamily Assisted Housing Reform and Affordability Act
of 1997 (42 U.S.C. 1437f note) is amended by inserting after and below
subparagraph (C) the following:
``Such term does not include any project with an expiring
contract described in paragraph (1) or (2) of section
524(e).''.
(c) Projects Exempted From Restructuring Agreements.--Section
514(h) of the Multifamily Assisted Housing Reform and Affordability Act
of 1997 (42 U.S.C. 1437f note) is amended by inserting before the
semicolon at the end the following: ``and the financing involves
mortgage insurance under the National Housing Act, such that the
implementation of a mortgage restructuring and rental assistance
sufficiency plan under this subtitle is in conflict with applicable law
or agreements governing such financing''.
(d) Conforming Amendments.--Section 8 of the United States Housing
Act of 1937 (42 U.S.C. 1437f) is amended--
(1) by designating as subsection (v) the sentence added by
section 405(c) of The Balanced Budget Downpayment Act, I
(Public Law 104-99; 110 Stat. 44); and
(2) by striking subsection (w).
SEC. 403. SECTION 236 ASSISTANCE.
(a) Continued Receipt of Subsidies Upon Refinancing.--Section
236(e) of the National Housing Act (12 U.S.C. 1715z-1(e)) is amended--
(1) by inserting ``(1)'' after ``(e)''; and
(2) by adding at the end the following new paragraph:
``(2) A project for which interest reduction payments are made
under this section and for which the mortgage on the project has been
refinanced shall continue to receive the interest reduction payments
under this section under the terms of the contract for such payments,
but only if the project owner enters into such binding commitments as
the Secretary may require (which shall be applicable to any subsequent
owner) to ensure that the owner will continue to operate the project in
accordance with all low-income affordability restrictions for the
project in connection with the Federal assistance for the project for a
period having a duration that is not less than the term for which such
interest reduction payments are made.''.
(b) Retention of Excess Income.--Section 236(g) of the National
Housing Act (12 U.S.C. 1715z-1(g)) is amended--
(1) by inserting ``(1)'' after ``(g)'';
(2) by striking the last sentence; and
(3) by adding at the end the following new paragraphs:
``(2) Subject to paragraph (3) and notwithstanding any other
requirements of this subsection, a project owner may retain some or all
of such excess charges for project use if authorized by the Secretary.
Such use shall be for project use and upon terms and conditions
established by the Secretary.
``(3) The authority under paragraph (2) to retain and use excess
charges shall apply--
``(A) during fiscal year 2000, to all project
owners collecting such excess charges; and
``(B) during fiscal year 2001 and thereafter--
``(i) to any owner of project with a
mortgage insured under this section, or a
project previously assisted under subsection
(b) but without a mortgage insured under this
section if the project was insured under
section 207 of this Act before July 30, 1998,
pursuant to section 223(f) of this Act and
assisted under subsection (b); and
``(ii) to other project owners not referred
to in clause (i) who collect such excess
charges, but only to the extent that such
retention and use is approved in advance in an
appropriation Act.''.
(c) Previously Owed Excess Income.--Section 236(g) of the National
Housing Act (12 U.S.C. 1715z-1(g)), as amended by subsection (b) of
this section, is further amended by adding at the end the following new
paragraph:
``(4) The Secretary shall not withhold approval of the retention by
the owner of such excess charges because of the existence of unpaid
excess charges if such unpaid amount is being remitted to the Secretary
over a period of time in accordance with a workout agreement with the
Secretary, unless the Secretary determines that the owner is in
violation of the workout agreement.''.
(d) Flexibility Regarding Basic Rents and Market Rents.--Section
236(f) of the National Housing Act (12 U.S.C. 1715z-1(f)(1)) is amended
by striking the subsection designation and all that follows through the
end of paragraph (1) and inserting the following:
``(f)(1)(A)(i) For each dwelling unit there shall be established,
with the approval of the Secretary, a basic rental charge and fair
market rental charge.
``(ii) The basic rental charge shall be--
``(I) the amount needed to operate the project with
payments of principal and interest due under a mortgage bearing
interest at the rate of 1 percent per annum; or
``(II) an amount greater than that determined under clause
(ii)(I), but not greater than the market rent for a comparable
unassisted unit, reduced by the value of the interest reduction
payments subsidy.
``(iii) The fair market rental charge shall be--
``(I) the amount needed to operate the project with
payments of principal, interest, and mortgage insurance premium
which the mortgagor is obligated to pay under the mortgage
covering the project; or
``(II) an amount greater than that determined under clause
(iii)(I), but not greater than the market rent for a comparable
unassisted unit.
``(iv) The Secretary may approve a basic rental charge and fair
market rental charge for a unit that exceeds the minimum amounts
permitted by this subparagraph for such charges only if--
``(I) the approved basic rental charge and fair market
rental charges each exceed the applicable minimum charge by the
same amount; and
``(II) the project owner agrees to restrictions on project
use or mortgage prepayment that are acceptable to the
Secretary.
``(v) The Secretary may approve a basic rental charge and fair
market rental charge under this paragraph for a unit with assistance
under section 8 of the United States Housing Act of 1937 (42 U.S.C.
1437f) that differs from the basic rental charge and fair market rental
charge for a unit in the same project that is similar in size and
amenities but without such assistance, as needed to ensure equitable
treatment of tenants in units without such assistance.
``(B)(i) The rental charge for each dwelling unit shall be at the
basic rental charge or such greater amount, not exceeding the fair
market rental charge determined pursuant to subparagraph (A), as
represents 30 percent of the tenant's adjusted income, except as
otherwise provided in this subparagraph.
``(ii) In the case of a project which contains more than 5000
units, is subject to an interest reduction payments contract, and is
financed under a State or local project, the Secretary may reduce the
rental charge ceiling, but in no case shall the rental charge be below
the basic rental charge set forth in subparagraph (A)(ii)(I).
``(iii) For plans of action approved for capital grants under the
Low-Income Housing Preservation and Resident Homeownership Act of 1990
or the Emergency Low Income Housing Preservation Act of 1987, the
rental charge for each dwelling unit shall be at the minimum basic
rental charge set forth in subparagraph (A)(ii)(I) or such greater
amount, not exceeding the lower of (I) the fair market rental charge
set forth in subparagraph (A)(iii)(I), or (II) the actual rent paid for
a comparable unit in comparable unassisted housing in the market area
in which the housing assisted under this section is located, as
represents 30 percent of the tenant's adjusted income.
``(C) With respect to those projects which the Secretary determines
have separate utility metering paid by the tenants for some or all
dwelling units, the Secretary may--
``(i) permit the basic rental charge and the fair market
rental charge to be determined on the basis of operating the
project without the payment of the cost of utility services
used by such dwelling units; and
``(ii) permit the charging of a rental for such dwelling
units at such an amount less than 30 percent of a tenant's
adjusted income as the Secretary determines represents a
proportionate decrease for the utility charges to be paid by
such tenant, but in no case shall rental be lower than 25
percent of a tenant's adjusted income.''.
(e) Effective Date of 1998 Provisions.--Section 236(g) of the
National Housing Act (12 U.S.C. 1715z-1(g)), as amended by section 227
of the Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 1999 (Public
Law 105-276; 112 Stat. 2490) shall be effective on the date of the
enactment of such Public Law 105-276, and any excess rental charges
referred to in such section that have been collected since such date of
enactment with respect to projects with mortgages insured under section
207 of the National Housing Act (12 U.S.C. 1713) may be retained by the
project owner unless the Secretary of Housing and Urban Development
specifically provides otherwise. The Secretary may return any excess
charges remitted to the Secretary since such date of the enactment.
(f) Effective Date.--This section shall take effect, and the
amendments made by this section are made and shall apply, on the date
of the enactment of this Act.
SEC. 404. MATCHING GRANT PROGRAM FOR AFFORDABLE HOUSING PRESERVATION.
(a) Amendment to Low-Income Housing Preservation and Resident
Homeownership Act of 1990.--Title II of the Housing and Community
Development Act of 1987 (12 U.S.C. 4101 et seq.) is amended--
(1) by striking subtitles C and D (as enacted by Public Law
100-242; 101 Stat. 1886); and
(2) by adding at the end the following new subtitle:
``Subtitle D--Matching Grants for States
``SEC. 261. AUTHORITY.
``The Secretary of Housing and Urban Development shall, to the
extent amounts are made available pursuant to section 269, make grants
under this subtitle to States and qualified units of general local
government for low-income housing preservation.
``SEC. 262. USE OF GRANTS.
``(a) In General.--Amounts from grants under this subtitle may be
used only for assistance for acquisition, preservation incentives,
operating costs, and capital expenditures for a housing project that--
``(1) is at risk of loss for use as affordable housing;
``(2)(A) is primarily occupied by elderly or disabled
families;
``(B) contains one or more dwelling units with three or
more bedrooms that are occupied by large families;
``(C) is located in a rural area with an inadequate supply
of comparable housing, as determined by the Secretary; or
``(D) is located in a neighborhood or area--
``(i) that is geographically smaller than a
market area; and
``(ii) within which, in the determination
of the Secretary, rental assistance vouchers
would be difficult to use, as demonstrated by a
low vacancy rate for affordable housing, a high
turnback rate for such vouchers, or a lack of
comparable rental housing;
``(3) meets the requirements under subsection (b), (c), or
(d); and
``(4) is subject to such binding commitments as the
Secretary shall require (which shall be applicable to any
subsequent owner) to ensure that the low-income affordability
restrictions for the project in connection with Federal
assistance for the project have been extended for the full
period applicable under the terms of assistance for the
project, but in no case for a period shorter than 5 years.
``(b) Projects With Federally Assisted Mortgages.--A project meets
the requirements under this subsection only if--
``(1) the project is financed by a loan or mortgage that
is--
``(A) insured or held by the Secretary under
section 221(d)(3) of the National Housing Act and
receiving loan management assistance under section 8 of
the United States Housing Act of 1937 due to a
conversion from section 101 of the Housing and Urban
Development Act of 1965;
``(B) insured or held by the Secretary and bears
interest at a rate determined under the proviso of
section 221(d)(5) of the National Housing Act;
``(C) insured, assisted, or held by the Secretary
or a State or State agency under section 236 of the
National Housing Act;
``(D) held by the Secretary and formerly insured
under a program referred to in subparagraph (A), (B),
or (C); or
``(E) insured or held by the Secretary of
Agriculture under section 514 or 515 of the Housing Act
of 1949; and
``(2) the project is subject to an unconditional waiver of,
with respect to the remaining term of the mortgage referred to
in paragraph (1)--
``(A) all rights to any prepayment of the mortgage;
and
``(B) all rights to any voluntary termination of
the mortgage insurance contract for the mortgage or the
interest reduction payments contract, as applicable,
except that such requirement shall not apply in the case of a
project that is subject to a binding agreement that ensures
that the project will continue to operate, at least until the
maturity date of the loan or mortgage, in a manner that will
provide rental housing on terms at least as advantageous to
existing and future tenants as the terms required by the
program under which the loan or mortgage was made or insured
prior to the proposed prepayment or termination.
``(c) Projects With Section 8 Project-Based Assistance.--A project
meets the requirements under this subsection only if--
``(1) the project is subject to a contract for project-
based assistance; and
``(2) the owner of the project has entered into binding
commitments (applicable to any subsequent owner) to extend such
assistance (subject to the availability of amounts for such
purpose) for a minimum of 5 years, or longer, as the Secretary
may prescribe under this section.
``(d) Projects Purchased By Residents.--A project meets the
requirements under this subsection only if the project--
``(1) is or was eligible low-income housing (as such term
is defined in section 229 (42 U.S.C. 4119)); and
``(2) has been purchased by a resident council for the
housing or is approved by the Secretary for such purchase, for
conversion to homeownership housing under a resident
homeownership program meeting the requirements under section
226 (12 U.S.C. 4116).
``(e) Combination of Assistance.--Notwithstanding subsection (a),
any project that is otherwise eligible for assistance with grant
amounts provided under this subtitle because the project meets the
requirements under subsection (b) or (c) and that also meets the
requirements under paragraph (1) of the other of such subsections,
shall be eligible for such assistance only if the project complies with
all of the requirements under such other subsection.
``SEC. 263. GRANT AMOUNT LIMITATION.
``The Secretary shall limit the portion of the aggregate amount of
grants under this subtitle made available for any fiscal year that may
be provided to a single State or qualified unit of general local
government based upon the proportion of such State's or unit's need (as
determined by the Secretary) for such assistance to the aggregate need
among all States and qualified units of general local government
approved for such assistance for such fiscal year.
``SEC. 264. MATCHING REQUIREMENT.
``(a) In General.--The Secretary may not make a grant under this
subtitle to any State or qualified unit of general local government for
any fiscal year in a total amount that exceeds the sum of the following
amounts:
``(1) 100 percent of the amount that the State or qualified
unit of general local government certifies, as the Secretary
shall require, that the State or qualified unit will contribute
for such fiscal year, or has contributed since January 1, 1999,
for the purposes under section 262(a).
``(2) 50 percent of the amount that the State or qualified
unit of general local government certifies will be or have been
so contributed from Federal sources.
``(b) Treatment of Previous Contributions.--Any portion of amounts
contributed after January 1, 1999, that are counted for purposes of
meeting the applicable requirement under subsection (a) for a fiscal
year may not be counted for such purposes for any subsequent fiscal
year.
``(c) Treatment of Tax Credits.--Tax credits provided under section
42 of the Internal Revenue Code of 1986 and proceeds from the sale of
tax-exempt revenue bonds, by any State, county, or local government
entity, which are subject to volume limitation under Federal law, shall
not be considered non-Federal sources for purposes of this section.
``SEC. 265. TREATMENT OF SUBSIDY LAYERING REQUIREMENTS.
``Neither section 264 nor any other provision of this subtitle may
be construed to prevent the use of tax credits provided under section
42 of the Internal Revenue Code of 1986 in connection with housing
assisted with grant amounts provided under this subtitle, to the extent
that such use is in accordance with section 102(d) of the Department of
Housing and Urban Development Reform Act of 1989 (42 U.S.C. 3545(d))
and section 911 of the Housing and Community Development Act of 1992
(42 U.S.C. 3545 note).
``SEC. 266. APPLICATIONS AND PREFERENCE.
``(a) Applications.--The Secretary shall provide for States and
units of general local government (through appropriate State and local
government agencies, including State and local housing finance
agencies) to submit applications for grants under this subtitle. The
Secretary shall require the applications to contain any information and
certifications necessary for the Secretary to determine whether the
State or unit of general local government is eligible to receive such a
grant.
``(b) Preference.--In making grants under this subtitle during
fiscal years 2001 and thereafter, the Secretary shall give preference--
``(1) among applications otherwise having equal merit for
funding under this subtitle, to funding applications for
eligible States, and qualified units of general local
government located in States, that have not previously received
a grant under this subtitle; and
``(2) to grants for eligible housing projects that are
subject to such binding commitments as the Secretary may
require to ensure that the project will be sold or transferred
to an owner that is a nonprofit organization.
``SEC. 267. DEFINITIONS.
``For purposes of this subtitle, the following definitions shall
apply:
``(1) Low-income affordability restrictions.--The term
`low-income affordability restrictions' has the meaning given
such term in section 229.
``(2) Project-based assistance.--The term `project-based
assistance' has the meaning given such term in section 16(c) of
the United States Housing Act of 1937 (42 U.S.C. 1437n(c)),
except that such term includes assistance under any successor
programs to the programs referred to in such section.
``(3) Qualified unit of general local government.--The term
`qualified unit of general local government' means, with
respect to a fiscal year, a unit of general local government
that is located within a State that--
``(A) has not applied, and has indicated (in
accordance with such requirements as the Secretary
shall establish) that it will not apply, to the
Secretary for a grant under this subtitle for the
fiscal year; or
``(B) has been determined by the Secretary not to
be eligible for a grant under this subtitle for the
fiscal year.
``(4) Secretary.--The term `Secretary' means the Secretary
of Housing and Urban Development.
``(5) State.--The term `State' means the States of the
United States, the District of Columbia, the Commonwealth of
Puerto Rico, the Commonwealth of the Northern Mariana Islands,
Guam, the Virgin Islands, American Samoa, and any other
territory or possession of the United States.
``(6) Unit of general local government.--The term `unit of
general local government' has the meaning given such term in
section 102 of the Housing and Community Development Act of
1974 (42 U.S.C. 5302).
``SEC. 268. REGULATIONS.
``The Secretary may issue any regulations necessary to carry out
this subtitle.
``SEC. 269. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated for grants under this
subtitle such sums as may be necessary for each of fiscal years, 2000,
2001, and 2002.''.
(b) Rule of Construction.--The amendment made by subsection (a)(1)
of this section (relating to striking subtitles C and D of title II of
the Housing and Community Development Act of 1987) may not be construed
to repeal or otherwise affect any provision of law that was amended by
such subtitles.
SEC. 405. REHABILITATION OF ASSISTED HOUSING.
(a) Rehabilitation Loans From Recaptured IRP Amounts.--Section
236(s) of the National Housing Act (12 U.S.C. 1715z-1) is amended--
(1) by striking the subsection designation and heading and
inserting the following:
``(s) Grants and Loans for Rehabilitation of Multifamily
Projects.--'';
(2) in paragraph (1), by inserting ``and loans'' after
``grants'';
(3) in paragraph (2)--
(A) in the matter preceding subparagraph (A), by
striking ``capital grant assistance under this
subsection'' and inserting ``capital assistance under
this subsection under a grant or loan only''; and
(B) in subparagraph (D)(i), by striking ``capital
grant assistance'' and inserting ``capital assistance
under this subsection from a grant or loan (as
appropriate)'';
(4) in paragraph (3), by striking all of the matter that
precedes subparagraph (A) and inserting the following:
``(3) Eligible uses.--Amounts from a grant or loan under
this subsection may be used only for projects eligible under
paragraph (2) for the purposes of--'';
(5) in paragraph (4)--
(A) by striking the paragraph heading and inserting
``Grant and loan agreements''; and
(B) by inserting ``or loan'' after ``grant'', each
place it appears;
(6) in paragraph (5), by inserting ``or loan'' after
``grant'', each place it appears;
(7) in paragraph (6), as amended by the preceding
provisions of this Act, by adding at the end the following new
subparagraph:
``(D) Loans.--In making loans under this subsection
using the amounts that the Secretary has recaptured
from contracts for interest reduction payments pursuant
to clause (i) or (ii) of paragraph (7)(A)--
``(i) the Secretary may use such recaptured
amounts for costs (as such term is defined in
section 502 of the Congressional Budget Act of
1974) of such loans;
``(ii) the Secretary may make loans in any
fiscal year only to the extent or in such
amounts that amounts are used under clause (i)
to cover costs of such loans; and
``(iii) the authority of the Secretary to
enter into commitments to make such loans shall
be effective for any fiscal year only to the
extent that: (I) there is enacted in advance,
in an appropriations Act, a maximum limitation
on the aggregate principal amount of such
commitments for such fiscal year; and (II) the
aggregate principal amount of such commitments
entered into by the Secretary does not exceed
such maximum amount.'';
(8) by redesignating paragraphs (5) and (6) (as amended by
the preceding provisions of this subsection) as paragraphs (6)
and (7); and
(9) by inserting after paragraph (4) the following new
paragraph:
``(5) Loan terms.--A loan under this subsection--
``(A) shall provide amounts for the eligible uses
under paragraph (3) in a single loan disbursement of
loan principal;
``(B) shall be repaid, as to principal and
interest, on behalf of the borrower using amounts
recaptured from contracts for interest reduction
payments pursuant to clause (i) or (ii) of paragraph
(7)(A);
``(C) shall have a term to maturity of a duration
not shorter than the remaining period for which the
interest reduction payments for the insured mortgage or
mortgages that fund repayment of the loan would have
continued after extinguishment or writedown of the
mortgage (in accordance with the terms of such mortgage
in effect immediately before such extinguishment or
writedown);
``(D) shall bear interest at a rate, as determined
by the Secretary of the Treasury, that is based upon
the current market yields on outstanding marketable
obligations of the United States having comparable
maturities; and
``(E) shall involve a principal obligation of an
amount not exceeding the amount that can be repaid
using amounts described in subparagraph (B) over the
term determined in accordance with subparagraph (C),
with interest at the rate determined under subparagraph
(D).''.
(b) Eligibility of Noninsured Projects for IRP Capital Grants.--
Section 236(s)(2) of the National Housing Act (12 U.S.C. 1715z-
1(s)(2)(A)) is amended by striking subparagraph (A) and inserting the
following new subparagraph:
``(A) if the project is federally assisted housing
described in subparagraph (B), (C), (D), (E), (F) or
(G) of section 683(2) of the Housing and Community
Development Act of 1992 (42 U.S.C. 13641(2));''.
(c) IRP Capital Grants Requirement for Extension of Low-Income
Affordability Requirements.--Section 236(s) of the National Housing Act
(12 U.S.C. 1715z-1(s)) is amended--
(1) in paragraph (2)--
(A) by redesignating subparagraphs (C) and (D), as
amended by the preceding provisions of this section, as
subparagraphs (D) and (E), respectively; and
(B) by inserting after subparagraph (B) the
following new subparagraph:
``(C) the project owner enters into such binding
commitments as the Secretary may require (which shall
be applicable to any subsequent owner) to ensure that
the owner will continue to operate the project in
accordance with all low-income affordability
restrictions for the project in connection with the
Federal assistance for the project for a period having
a duration that is not less than the period referred to
in paragraph (5)(C);''; and
(2) in paragraph (4)(B), by inserting ``and consistent with
paragraph (2)(C)'' before the period at the end.
SEC. 406. TECHNICAL ASSISTANCE.
Section 514(f)(3) of the Multifamily Assisted Housing Reform and
Affordability Act of 1997 (42 U.S.C. 1437f note) is amended by
inserting after ``new owners)'' the following: ``, for technical
assistance for preservation of low-income housing for which project-
based rental assistance is provided at below market rent levels and may
not be renewed (including transfer of developments to tenant groups,
nonprofit organizations, and public entities),''.
SEC. 407. TERMINATION OF SECTION 8 CONTRACT AND DURATION OF RENEWAL
CONTRACT.
Section 8(c)(8) of the United States Housing Act of 1937 (42 U.S.C.
1437f(c)(8)) is amended--
(1) in subparagraph (A)--
(A) by striking ``terminating'' and inserting
``termination of''; and
(B) by striking the third comma of the first
sentence and all that follows through the end of the
subparagraph and inserting the following: ``. The
notice shall also include a statement that, if the
Congress makes funds available, the owner and the
Secretary may agree to a renewal of the contract, thus
avoiding termination, and that in the event of
termination the Department of Housing and Urban
Development will provide tenant-based rental assistance
to all eligible residents, enabling them to choose the
place they wish to rent, which is likely to include the
dwelling unit in which they currently reside. Any
contract covered by this paragraph that is renewed may
be renewed for a period of up to one year or any number
or years, with payments subject to the availability of
appropriations for any year.'';
(2) by striking subparagraph (B);
(3) in subparagraph (C)--
(A) by striking the first sentence;
(B) by striking ``in the immediately preceding
sentence'';
(C) by striking ``180-day'' each place it appears;
(D) by striking ``such period'' and inserting ``one
year''; and
(E) by striking ``180 days'' and inserting ``one
year''; and
(4) by redesignating subparagraphs (C), (D), and (E), as
amended by the preceding provisions of this subsection, as
subparagraphs (B), (C), and (D), respectively.
SEC. 408. ENHANCED VOUCHER ELIGIBILITY AND BENEFITS.
(a) Eligibility of Residents of Flexible Subsidy Projects.--Section
201 of the Housing and Community Development Amendments of 1978 (12
U.S.C. 1715z-1a) is amended by adding at the end the following new
subsection:
``(p) Enhanced Voucher Eligibility.--Notwithstanding any other
provision of law, any project that receives or has received assistance
under this section and which is the subject of a transaction under
which the project is preserved as affordable housing, as determined by
the Secretary, shall be considered eligible low-income housing under
section 229 of the Low-Income Housing Preservation and Resident
Homeownership Act of 1990 (12 U.S.C. 4119) for purposes of eligibility
of residents of such project for enhanced voucher assistance provided
in accordance with the `Preserving Existing Housing Investment' account
in the Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 1997 (Public
Law 104-204; 110 Stat. 2884) and pursuant to such provision or any
other subsequently enacted provision of law.''.
(b) Effect of Rental Increases on Other Enhanced Vouchers.--To the
extent that amounts are provided in advance in appropriations Acts for
enhanced vouchers (including amendments and renewals) pursuant to the
authority under the heading ``Preserving Existing Housing Investment''
in the Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations Act, 1997 (Public
Law 104-204; 110 Stat. 2884), each family receiving such enhanced
voucher assistance after the date of prepayment or voluntary
termination which continues to reside in the housing occupied on the
date of prepayment or voluntary termination and the rent of which,
absent enhanced voucher assistance, would exceed the greater of 30
percent of adjusted income or the rent paid by the family on such date,
may continue to receive such enhanced voucher assistance indefinitely,
subject to other requirements of that authority, as amended: Provided,
That rent resulting from rent increases occurring later than 1 year
after the date of prepayment or voluntary termination may be used to
increase the applicable payment standard: Provided further, That the
rent for the dwelling unit is reasonable in comparison to the rent
charged for comparable dwelling units in the private, unassisted local
market.
SEC. 409. ENHANCED DISPOSITION AUTHORITY.
Section 204 of the Departments of Veterans Affairs and Housing and
Urban Development, and Independent Agencies Appropriations Act, 1997
(12 U.S.C. 1715z-11a) is amended--
(1) by striking ``and 1999'' and inserting ``1999, and
2000''; and
(2) by striking ``or demolition'' and inserting ``,
demolition, or construction on the properties (which shall be
eligible whether vacant or occupied)''.
SEC. 410. ASSISTANCE FOR NONPROFIT PURCHASERS PRESERVING AFFORDABLE
HOUSING.
(a) Congressional Findings.--The Congress finds that--
(1) a substantial number of existing federally assisted or
federally insured multifamily properties are at risk of being
lost from the affordable housing inventory of the Nation
through market rate conversion, deterioration, or demolition;
(2) it is in the interests of the Nation to encourage
transfer of control of such properties to competent national,
regional, and local nonprofit entities and intermediaries whose
missions involve maintaining the affordability of such
properties;
(3) such transfers may be inhibited by a shortage of such
entities that are appropriately capitalized; and
(4) the Nation would be well served by providing assistance
to such entities to aid in accomplishing this purpose.
(b) Grants.--The Secretary of Housing and Urban Development may
make grants, to the extent amounts are made available for such grants,
to eligible entities under subsection (c) for use only for operational,
working capital, and organizational expenses of such entities and
activities by such entities to acquire eligible affordable housing for
the purpose of ensuring that the housing will remain affordable, as the
Secretary considers appropriate, for low-income or very low-income
families (including elderly persons).
(c) Eligible Entities.--The Secretary shall establish standards for
eligible entities under this subsection, which shall include
requirements that to be considered an eligible entity for purposes of
this section an entity shall--
(1) be a nonprofit organization (as such term is defined in
104 of the Cranston-Gonzalez National Affordable Housing Act);
(2) have among its purposes maintaining the affordability
to low-income or very low-income families of multifamily
properties that are at risk of loss from the inventory of
housing that is affordable to low-income or very low-income
families; and
(3) demonstrate need for assistance under this section for
the purposes under subsection (b), experience in carrying out
activities referred to in such subsection, and capability to
carry out such activities.
(d) Definitions.--For purposes of this section, the following
definitions shall apply:
(1) Eligible affordable housing.--The term ``eligible
affordable housing'' means housing that--
(A) consists of more than four dwelling units;
(B) is insured or assisted under a program of the
Department of Housing and Urban Development or the
Department of Agriculture under which the property is
subject to limitations on tenant rents, rent
contributions, or incomes; and
(C) is at risk, as determined by the Secretary, of
termination of any of the limitations referred to in
subparagraph (B).
(2) Low-income families; very low-income families.--The
terms ``low-income families'' and very low-income families''
have the meanings given such terms in section 3(b) of the
United States Housing Act of 1937.
(e) Authorization of Appropriations.--There are authorized to be
appropriated for grants under this section such sums as may be
necessary for each of fiscal years 2000, 2001, and 2002.
TITLE V--MORTGAGE INSURANCE FOR HEALTH CARE FACILITIES AND HOME EQUITY
CONVERSION MORTGAGES
SEC. 501. REHABILITATION OF EXISTING HOSPITALS, NURSING HOMES, AND
OTHER FACILITIES.
Section 223(f) of the National Housing Act (12 U.S.C. 1715n(f)) is
amended--
(1) in paragraph (1), by inserting ``existing health care
facility,'' after ``existing board and care home,''; and
(2) in paragraph (4)--
(A) by inserting ``existing health care facility,''
after ``board and care home,'' each place it appears;
(B) in subparagraph (A), by inserting before the
semicolon at the end the following: ``, which
refinancing, in the case of a loan on a hospital, home,
or facility that is within 5 years of maturity, shall
include a mortgage made to prepay such loan;'';
(C) in subparagraph (B), by inserting after
``indebtedness'' the following: ``, pay the costs of
any repairs, maintenance, improvements, or additional
equipment which may be approved by the Secretary,'';
and
(D) in subparagraph (D)--
(i) by inserting ``existing'' before
``intermediate care facility''; and
(ii) by inserting ``existing'' before
``board and care home''.
SEC. 502. NEW HEALTH CARE FACILITIES.
Section 232 of the National Housing Act (12 U.S.C. 1715w) is
amended--
(1) in subsection (a), by adding at the end the following
new paragraph:
``(4) The development of health care facilities for the
care and treatment of the elderly and other persons in need of
health care and related services, but who are not acutely ill
and do not require hospital care, and the support of health
care facilities which provide such health care and related
services (including those which support hospitals, as defined
in section 242(b)).'';
(2) in subsection (b)--
(A) in paragraph (4), by inserting after the first
period the following new sentence: ``Such term includes
a parity first mortgage or parity first deed of trust,
subject to such terms and conditions as the Secretary
may provide.'';
(B) in paragraph (6)--
(i) by striking subparagraph (A) and
inserting the following new subparagraph:
``(A) meets all licensing and regulatory
requirements of the State, or if there is no State law
providing for such licensing and regulation by the
State, meets all licensing and regulatory requirements
of the municipality or other political subdivision in
which the facility is located, or, in the absence of
any such requirements, meets any requirements of the
Secretary for such purposes;''; and
(ii) in subparagraph (C), by striking
``and'' at the end;
(C) in paragraph (7), by striking the period at the
end and inserting ``; and''; and
(D) by adding at the end the following new
paragraph:
``(8) the term `health care facility' means a facility--
``(A) providing integrated health care delivery
services designed and operated to provide medical,
convalescent, skilled and intermediate nursing, board
and care services, assisted living, rehabilitation,
custodial, personal care services, or any combination
thereof;
``(B) designed, in whole or in part, to provide a
continuum of care, as determined by the Secretary;
``(C) providing clinical services, out patient
services, including community health services and
medical practice facilities and group practice
facilities to persons not in need of the services
rendered in other facilities insurable under this
title; or
``(D)(i) designed, in whole or in part--
``(I) to provide health care services which
are not acute care in nature to persons
(including the elderly and infirm); or
``(II) to provide supportive or ancillary
services to hospitals (as defined in section
242(b)), which services may include services
provided by special use health care facilities,
professional office buildings, laboratories,
administrative offices, and other facilities
supportive or ancillary to health care
delivery; and
``(ii) that meet standards acceptable to the
Secretary, which may include standards governing
licensure or State or local approval and regulation of
a mortgagor; or
``(E) that provides any combination of the services
under subparagraphs (a) through (D).'';
(3) in subsection (d)--
(A) in the matter preceding paragraph (1)--
(i) by inserting ``board and care home,''
after ``rehabilitated nursing home,'';
(ii) by inserting ``health care facility,''
after ``assisted living facility,'' the first
two places it appears;
(iii) by inserting ``board and care home,''
after ``existing nursing home,''; and
(iv) by striking ``or a board and care
home'' and inserting ``, board and care home or
health care facility'';
(B) in paragraph (2), in the matter preceding
subparagraph (A), by inserting after ``including'' the
following: ``or a public body, public agency, or public
corporation eligible under this section'';
(C) in paragraph (4)(A)--
(i) in the first sentence--
(I) by inserting ``, and health
care facilities which include such
nursing home and intermediate care
facilities,'' before ``, the
Secretary'';
(II) by inserting ``or the portion
of a health care facility providing
such services'' before ``covered by the
mortgage,''; and
(III) by inserting ``or for such
nursing or intermediate care services
within a health care facility'' before
``, and (ii)'';
(ii) in the second sentence, by inserting
``(which may be within a health care
facility)'' after ``home and facility''; and
(iii) in the third sentence--
(I) by striking ``mortgage under
this section'' and all that follows
through ``feasibility'' and inserting
the following: ``such mortgage under
this section unless (i) the proposed
mortgagor or applicant for the mortgage
insurance for the home or facility or
combined home or facility, or the
health care facility containing such
services, has commissioned and paid for
the preparation of an independent study
of market need for the project'';
(II) in clause (i)(II), by striking
``and its relationship to, other health
care facilities and'' and inserting
``or such facilities within a health
care facility, and its relationship to,
other facilities providing health
care'';
(III) in clause (i)(IV), by
striking ``in the event the State does
not prepare the study,''; and
(IV) in clause (i)(IV), by striking
``the State or'';
(iv) by striking the penultimate sentence
and inserting the following new sentences: ``A
study commissioned or undertaken by the State
in which the facility will be located shall be
considered to satisfy such market study
requirement. The proposed mortgagor or
applicant may reimburse the State for the cost
of an independent study referred to in the
preceding sentence.''; and
(v) in the last sentence--
(I) by inserting ``the proposed
mortgagor or applicant for mortgage
insurance may obtain from'' after ``10
individuals,'';
(II) by striking ``may'' and
inserting ``and''; and
(III) by inserting a comma before
``written support''; and
(D) in paragraph (4)(C)(iii), by striking ``the
appropriate State'' and inserting ``any appropriate'';
and
(4) in subsection (i)(1) by inserting ``health care
facilities,'' after ``assisted living facilities,''.
SEC. 503. HOSPITALS AND HOSPITAL-BASED HEALTH CARE FACILITIES.
Section 242 of the National Housing Act (12 U.S.C. 1715z-7) is
amended--
(1) in subsection (b)--
(A) in paragraph (1)--
(i) in subparagraph (A), by inserting
``and'' after the semicolon at the end;
(ii) by striking subparagraph (B);
(iii) in subparagraph (C), by striking the
period at the end and inserting ``; and''; and
(iv) by redesignating subparagraph (C) as
subparagraph (B);
(B) in paragraph (2), by striking ``respectfully''
and all that follows and inserting ``given such terms
in section 207(a), except that the term `mortgage'
shall include a parity first mortgage or parity first
deed of trust, subject to such terms and conditions as
the Secretary may provide.'; and
(C) by adding at the end the following new
paragraph:
``(3) the term `health care facility' has the meaning given
such term in section 232(b).'';
(2) in subsection (d)--
(A) in the matter preceding paragraph (1), by
inserting after ``operation,'' the following: ``or
which covers a health care facility owned or to be
owned by an applicant or proposed mortgagor which also
owns a hospital, including equipment to be used in its
operation,'';
(B) in paragraph (1)--
(i) in the first sentence, by inserting
before the period at the end the following:
``and who, in the case of a mortgage covering a
health care facility, is also the owner of a
hospital facility''; and
(ii) by adding at the end the following new
sentence: ``A mortgage covering a health care
facility may only cover the property on which
the eligible facility will be located.'';
(C) in paragraph (2)(A) by inserting ``or health
care facility'' before the comma; and
(D) in paragraph (4)--
(i) in the first sentence, by inserting
``for a hospital'' after ``any mortgage'';
(ii) by striking the third sentence and
inserting the following: ``If no such State
agency exists, or if the State agency exists
but is not empowered to provide a certification
that there is a need for the hospital as set
forth in clause (A) of the first sentence, the
Secretary shall not insure any such mortgage
under this section unless: (A) the proposed
mortgagor or applicant for the hospital has
commissioned and paid for the preparation of an
independent study of market need for the
proposed project that: (i) is prepared in
accordance with the principles established by
the Secretary, in consultation with the
Secretary of Health and Human Services (to the
extent the Secretary of Housing and Urban
Development considers appropriate); (ii)
assesses, on a marketwide basis, the impact of
the proposed hospital on, and its relationship
to, other facilities providing health care
services, the percentage of excess beds,
demographic projections, alternative health
care delivery systems, and the reimbursement
structure of the hospital; (iii) is addressed
to and is acceptable to the Secretary in form
and substance; and (iv) is prepared by a
financial consultant selected by the proposed
mortgagor or applicant and approved by the
Secretary; and (B) the State complies with the
other provisions of this paragraph that would
otherwise be required to be met by a State
agency designated in accordance with section
604(a)(1) or section 1521 of the Public Health
Service Act. A study commissioned or undertaken
by the State in which the hospital will be
located shall be considered to satisfy such
market study requirement.''; and
(iii) in the last sentence, by striking
``feasibility''; and
(3) in subsection (f), by inserting ``and public health
care facilities'' after ``public hospitals''.
SEC. 504. HOME EQUITY CONVERSION MORTGAGES.
(a) Insurance for Mortgages to Refinance Existing HECMs.--
(1) In General.--Section 255 of the National Housing Act
(12 U.S.C. 1715z-20) is amended--
(A) by redesignating subsection (k) as subsection
(l); and
(B) by inserting after subsection (j) the following
new subsection:
``(k) Insurance Authority for Refinancings.--
``(1) In general.--The Secretary may, upon application by a
mortgagee, insure under this subsection any mortgage given to
refinance an existing home equity conversion mortgage insured
under this section.
``(2) Anti-churning disclosure.--The Secretary shall, by
regulation, require that the mortgagee of a mortgage insured
under this subsection, provide to the mortgagor, within an
appropriate time period and in a manner established in such
regulations, a good faith estimate of: (A) the total cost of
the refinancing; and (B) the increase in the mortgagor's
principal limit as measured by the estimated initial principal
limit on the mortgage to be insured under this subsection less
the current principal limit on the home equity conversion
mortgage that is being refinanced and insured under this
subsection.
``(3) Waiver of counseling requirement.--The mortgagor
under a mortgage insured under this subsection may waive the
applicability, with respect to such mortgage, of the
requirements under subsection (d)(2)(B) (relating to third
party counseling), but only if--
``(A) the mortgagor has received the disclosure
required under paragraph (2);
``(B) the increase in the principal limit described
in paragraph (2) exceeds the amount of the total cost
of refinancing (as described in such paragraph) by an
amount to be determined by the Secretary; and
``(C) the time between the closing of the original
home equity conversion mortgage that is refinanced
through the mortgage insured under this subsection and
the application for a refinancing mortgage insured
under this subsection does not exceed 5 years.
``(4) Credit for premiums paid.--Notwithstanding section
203(c)(2)(A), the Secretary may reduce the amount of the single
premium payment otherwise collected under such section at the
time of the insurance of a mortgage refinanced and insured
under this subsection. The amount of the single premium for
mortgages refinanced under this subsection shall be determined
by the Secretary based on the actuarial study required under
paragraph (5).
``(5) Actuarial study.--Not later than 180 days after the
date of the enactment of this subsection, the Secretary shall
conduct an actuarial analysis to determine the adequacy of the
insurance premiums collected under the program under this
subsection with respect to--
``(A) a reduction in the single premium payment
collected at the time of the insurance of a mortgage
refinanced and insured under this subsection;
``(B) the establishment of a single national limit
on the benefits of insurance under subsection (g)
(relating to limitation on insurance authority); and
``(C) the combined effect of reduced insurance
premiums and a single national limitation on insurance
authority.
``(6) Fees.--The Secretary may establish a limit on the
origination fee that may be charged to a mortgagor under a
mortgage insured under this subsection, except that such
limitation shall provide that the origination fee may be fully
financed with the mortgage and shall include any fees paid to
correspondent mortgagees approved by the Secretary. The
Secretary shall prohibit the charging of any broker fees in
connection with mortgages insured under this subsection.''.
(2) Regulations.--Notwithstanding sections 2 and 3 of the
Preserving Affordable Housing for Senior Citizens and Families
into the 21st Century Act, the Secretary shall issue any final
regulations necessary to implement the amendments made by
paragraph (1) of this subsection, which shall take effect not
later than the expiration of the 180-day period beginning on
the date of the enactment of this Act. The regulations shall be
issued after notice and opportunity for public comment in
accordance with the procedure under section 553 of title 5,
United States Code, applicable to substantive rules
(notwithstanding subsections (a)(2), (b)(B), and (d)(3) of such
section).
(b) Study of Single National Mortgage Limit.--The Secretary of
Housing and Urban Development shall conduct an actuarially based study
of the effects of establishing, for mortgages insured under section 255
of the National Housing Act (12 U.S.C. 1715z-20), a single maximum
mortgage amount limitation in lieu of applicability of section
203(b)(2) of such Act (12 U.S.C. 1709(b)(2)). The study shall--
(1) examine the effects of establishing such limitation at
different dollar amounts; and
(2) examine the effects of such various limitations on--
(A) the risks to the General Insurance Fund
established under section 519 of such Act;
(B) the mortgage insurance premiums that would be
required to be charged to mortgagors to ensure
actuarial soundness of such Fund; and
(C) take into consideration the various approaches
to providing credit to borrowers who refinance home
equity conversion mortgages insured under section 255
of such Act.
Not later than 180 days after the date of the enactment of this Act,
the Secretary shall complete the study under this subsection and submit
a report describing the study and the results of the study to the
Committee on Banking and Financial Services of the House of
Representatives and to the Committee on Banking, Housing, and Urban
Affairs of the Senate.
Passed the House of Representatives September 27, 1999.
Attest:
JEFF TRANDAHL,
Clerk.