[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2733 Introduced in Senate (IS)]







106th CONGRESS
  2d Session
                                S. 2733

  To provide for the preservation of assisted housing for low-income 
         elderly persons, disabled persons, and other families.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                             June 15, 2000

Mr. Santorum (for himself, Mr. Kerry, and Mr. Sarbanes) introduced the 
 following bill; which was read twice and referred to the Committee on 
                  Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
  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 ``Affordable Housing 
for Seniors and Families 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--REFINANCING FOR SECTION 202 SUPPORTIVE HOUSING FOR THE ELDERLY

Sec. 101. 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. Annual HUD inventory of assisted housing designated for 
                            elderly persons.
Sec. 312. 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. Use of project reserves.
Sec. 326. Commercial activities.
                      Subtitle C--Other Provisions

Sec. 341. Service coordinators.
           TITLE IV--PRESERVATION OF AFFORDABLE HOUSING STOCK

Sec. 401. Matching grant program for affordable housing preservation.
Sec. 402. Assistance for nonprofit purchasers preserving affordable 
                            housing.
Sec. 403. Section 236 assistance.
Sec. 404. Preservation projects.
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 integrated service facilities.
Sec. 503. Hospitals and hospital-based integrated service facilities.
Sec. 504. Home equity conversion mortgages.

SEC. 2. REGULATIONS.

    The Secretary of Housing and Urban Development (referred to in this 
Act as the ``Secretary'') 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 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--REFINANCING FOR SECTION 202 SUPPORTIVE HOUSING FOR THE ELDERLY

SEC. 101. 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 1 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:
    ``(m) Authorization of Appropriations.--There is authorized to be 
appropriated for providing assistance under this section $700,000,000 
for fiscal year 2001 and such sums as may be necessary for each of 
fiscal years 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 are 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 by striking subsection (m) and 
inserting the following:
    ``(m) Authorization of Appropriations.--There is authorized to be 
appropriated for providing assistance under this section $225,000,000 
for fiscal year 2001 and such sums as may be necessary for each of 
fiscal years 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 are 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.

    There is authorized to be appropriated to the Secretary $50,000,000 
for fiscal year 2001, and such sums as may be necessary for each of 
fiscal years 2002, 2003, and 2004, 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.

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:
            ``(4) Matching grants.--
                    ``(A) In general.--
                            ``(i) 15 percent minimum.--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 15 percent of the amount 
                        of assistance provided pursuant to this 
                        paragraph for the project.
                            ``(ii) Preference.--In providing assistance 
                        under this paragraph, the Secretary shall take 
                        into consideration the degree to which the 
                        applicant will supplement that assistance with 
                        amounts from sources other than this section 
                        and, all other factors being equal, shall give 
                        preference to applicants whose supplemental 
                        assistance is equal to the highest percentage 
                        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 inserting after subparagraph (C) the 
following:
        ``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), or a 
        corporation wholly owned and controlled 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 paragraph heading, 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 
subparagraph (A) and in the case only of a supportive housing project 
for the elderly that has a high vacancy level (as defined by the 
Secretary, except that such term 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:
            ``(3) Availability of units.--In the case of a supportive 
        housing project described in paragraph (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) 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; and
                    ``(B) a low-income elderly person who is not a very 
                low-income elderly person, unless the owner certifies 
                to the Secretary that the owner has engaged in 
                affirmative marketing and outreach to very low-income 
                elderly persons.''.
    (c) 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 before ``in 
                accordance with this section'' 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:
            ``(3) Low-income.--The term `low-income' has the 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:
            ``(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: ``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, except that assistance made available under this section may 
not be used to subsidize any such commercial facility.''.

SEC. 308. MIXED FINANCE PILOT PROGRAM.

    (a) Authority.--The Secretary 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 5 housing projects.
    (c) Mixed Use.--The Secretary shall, for a project to be assisted 
under the pilot program--
            (1) require that a minimum number 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, such that the ratio that the 
        number of dwelling units in the project so reserved bears to 
        the total number of units in the project is not less than the 
        ratio that the amount of assistance from such section 202 used 
        for the project pursuant to subsection (d) bears to the total 
        amount of assistance provided for the project under this 
        section; and
            (2) provide that the remainder of the dwelling units in the 
        project may be used for assistance to persons who are not very 
        low-income.
    (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 (c)(1) of such section and project rental assistance in 
accordance with subsection (c)(2) of such section, only for dwelling 
units described in subsection (c)(1) of this section. Any assistance 
provided pursuant to subsection (c)(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) Report.--Not later than 2 years after assistance is initially 
made available under the pilot program under this section, the 
Secretary shall submit to Congress a report on the results of the pilot 
program.

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:

``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 1 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.--
            ``(1) In general.--An eligible project described in this 
        subsection is a multifamily housing project that is--
                    ``(A) 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);
                    ``(B) owned by a private nonprofit organization (as 
                such term is defined in section 202); and
                    ``(C) designated primarily for occupancy by elderly 
                persons.
            ``(2) Unused or underutilized commercial property.--
        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 than 3 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.--In 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 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:

``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.--In 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 2001, 2002, 2003, and 2004.''.

SEC. 311. 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:

``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. 312. TREATMENT OF APPLICATIONS.

    Notwithstanding any other provision of law or any regulation of the 
Secretary, 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 solely on the grounds of failure to timely provide such 
information.

           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:
            ``(5) Matching grants.--
                    ``(A) In general.--
                            ``(i) 15 percent minimum.--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 15 percent of the amount 
                        of assistance provided pursuant to this 
                        paragraph for the project.
                            ``(ii) Preference.--In providing assistance 
                        under this paragraph, the Secretary shall take 
                        into consideration the degree to which the 
                        applicant will supplement that assistance with 
                        amounts from sources other than this section 
                        and, all other factors being equal, shall give 
                        preference to applicants whose supplemental 
                        assistance is equal to the highest percentage 
                        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 inserting after subparagraph (D) the following:
        ``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) or a 
        corporation wholly owned and controlled 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:
            ``(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 adding at the end the following: 
                ``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. 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:
            ``(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. 326. 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: ``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, except that assistance made available under this 
section may not be used to subsidize any such commercial facility.''.

                      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 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 at the end the following: 
                        ``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:
    ``(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: 
                ``education and outreach regarding telemarketing fraud 
                in accordance with the standards issued under 
                subsection (f),''; and
                    (B) by adding at the end the following:
    ``(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.''.

           TITLE IV--PRESERVATION OF AFFORDABLE HOUSING STOCK

SEC. 401. MATCHING GRANT PROGRAM FOR AFFORDABLE HOUSING PRESERVATION.

    (a) Findings and Purposes.--
            (1) Findings.--Congress finds that--
                    (A) availability of low-income housing rental units 
                has declined nationwide in the last several years;
                    (B) as rents for low-income housing increase and 
                the development of new units of affordable housing 
                decreases, there are fewer privately owned, federally 
                assisted affordable housing units available to low-
                income individuals in need;
                    (C) the demand for affordable housing far exceeds 
                the supply of such housing, as evidenced by recent 
                studies; and
                    (D) the efforts of nonprofit organizations have 
                significantly preserved and expanded access to low-
                income housing.
            (2) Purposes.--The purposes of this section are--
                    (A) to continue the partnerships among the Federal 
                Government, State and local governments, nonprofit 
                organizations, and the private sector in operating and 
                assisting housing that is affordable to low-income 
                persons and families;
                    (B) to promote the preservation of affordable 
                housing units by providing matching grants to States 
                and localities that have developed and funded programs 
                for the preservation of privately owned housing that is 
                affordable to low-income families and persons; and
                    (C) to minimize the involuntary displacement of 
                tenants who are currently residing in such housing, 
                many of whom are elderly or disabled persons and 
                families with children.
    (b) Definitions.--In this section:
            (1) Capital expenditures.--The term ``capital 
        expenditures'' includes expenditures for acquisition and 
        rehabilitation.
            (2) Low-income affordability restrictions.--The term ``low-
        income affordability restrictions'' means, with respect to a 
        housing project, any limitations imposed by law, regulation, or 
        regulatory agreement on rents for tenants of the project, rent 
        contributions for tenants of the project, or income-eligibility 
        for occupancy in the project.
            (3) 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.
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
            (5) State.--The term ``State'' means each of the several 
        States and the District of Columbia.
    (c) Authority.--The Secretary shall, to the extent amounts are made 
available in advance under subsection (k), award grants under this 
section to States and localities for low-income housing preservation 
and promotion.
    (d) Applications.--The Secretary shall provide for States and 
localities (through appropriate State and local agencies) to submit 
applications for grants under this section. The Secretary shall require 
the applications to contain any information and certifications 
necessary for the Secretary to determine who is eligible to receive 
such a grant.
    (e) Use of Grants.--
            (1) Eligible uses.--
                    (A) In general.--Amounts from grants awarded under 
                this section may be used by States and localities only 
                for the purpose of providing assistance for 
                acquisition, rehabilitation, operating costs, and 
                capital expenditures for a housing project that meets 
                the requirements under paragraph (2), (3), (4), or (5).
                    (B) Factors for consideration.--In selecting 
                projects described in subparagraph (A) for assistance 
                with amounts from a grant awarded under this section, 
                the State or locality shall--
                            (i) take into consideration--
                                    (I) whether the assistance will be 
                                used to transfer the project to a 
                                resident-endorsed nonprofit 
                                organization;
                                    (II) whether the owner of the 
                                project has extended the low-income 
                                affordability restrictions on the 
                                project for a period of more than 15 
                                years;
                                    (III) the extent to which the 
                                project is consistent with the 
                                comprehensive housing affordability 
                                strategy approved in accordance with 
                                section 105 of the Cranston-Gonzalez 
                                National Affordable Housing Act (42 
                                U.S.C. 12705) for the jurisdiction in 
                                which the project is located;
                                    (IV) the extent to which the 
                                project location provides access to 
                                transportation, jobs, shopping, and 
                                other similar conveniences;
                                    (V) the extent to which the project 
                                meets fair housing goals;
                                    (VI) the extent to which the 
                                project serves specific needs that are 
                                not otherwise met by the local market, 
                                such as housing for the elderly or 
                                disabled, or families with children;
                                    (VII) the extent of local 
                                government resources provided to the 
                                project; and
                                    (VIII) such other factors as the 
                                Secretary or the State or locality may 
                                establish; and
                            (ii) States receiving funds shall ensure 
                        that, to the maximum extent practicable, 
                        projects in both urban and rural areas in the 
                        State receive assistance.
            (2) Projects with hud-insured mortgages.--A project meets 
        the requirements under this paragraph only if--
                    (A) the project is financed by a loan or mortgage 
                that is--
                            (i) insured or held by the Secretary under 
                        section 221(d)(3) of the National Housing Act 
                        (12 U.S.C. 1715l(d)(3)) and receiving loan 
                        management assistance under section 8 of the 
                        United States Housing Act of 1937 (42 U.S.C. 
                        1437f) due to a conversion from section 101 of 
                        the Housing and Urban Development Act of 1965 
                        (12 U.S.C. 1701s);
                            (ii) 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 (12 U.S.C. 1715l(d)(5)); or
                            (iii) insured, assisted, or held by the 
                        Secretary or a State or State agency under 
                        section 236 of the National Housing Act (12 
                        U.S.C. 1715z-1);
                    (B) the project is subject to an unconditional 
                waiver of, with respect to the mortgage referred to in 
                subparagraph (A)--
                            (i) all rights to any prepayment of the 
                        mortgage; and
                            (ii) all rights to any voluntary 
                        termination of the mortgage insurance contract 
                        for the mortgage; and
                    (C) if the low-income affordability restrictions on 
                the project are for less than 15 years, the owner of 
                the project has entered into binding commitments 
                (applicable to any subsequent owner) to extend those 
                restrictions, including any such restrictions imposed 
                because of any contract for project-based assistance 
                for the project, for a period of not less than 15 years 
                (beginning on the date on which assistance is made 
                available for the project by the State or locality 
                under this section).
            (3) Projects with section 8 project-based assistance.--A 
        project meets the requirements under this paragraph only if--
                    (A) the project is subject to a contract for 
                project-based assistance; and
                    (B) the owner of the project has entered into 
                binding commitments (applicable to any subsequent 
                owner)--
                            (i) to continue to renew such contract (if 
                        offered on the same terms and conditions) until 
                        the later of--
                                    (I) the last day of the remaining 
                                term of the mortgage; or
                                    (II) the date that is 15 years 
                                after the date on which assistance is 
                                made available for the project by the 
                                State or locality under this 
                                subsection; and
                            (ii) to extend any low-income affordability 
                        restrictions applicable to the project in 
                        connection with such assistance.
            (4) Projects purchased by residents.--A project meets the 
        requirements under this paragraph only if the project--
                    (A) is or was eligible low-income housing (as 
                defined in section 229 of the Low-Income Housing 
                Preservation and Resident Homeownership Act of 1990 (42 
                U.S.C. 4119)) or is or was a project assisted under 
                section 613(b) of the Cranston-Gonzalez National 
                Affordable Housing Act (12 U.S.C. 4125(b));
                    (B) has been purchased by a resident council or 
                resident-approved nonprofit organization 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 of such Act (12 U.S.C. 
                4116); and
                    (C) the owner of the project has entered into 
                binding commitments (applicable to any subsequent 
                owner) to extend such assistance for not less than 15 
                years (beginning on the date on which assistance is 
                made available for the project by the State or locality 
                under this section) and to extend any low-income 
                affordability restrictions applicable to the project in 
                connection with such assistance.
            (5) Rural rental assistance projects.--A project meets the 
        requirements of this paragraph only if--
                    (A) the project is a rural rental housing project 
                financed under section 515 of the Housing Act of 1949 
                (42 U.S.C. 1485); and
                    (B) the restriction on the use of the project (as 
                required under section 502 of the Housing Act of 1949 
                (42 U.S.C. 1472)) will expire not later than 12 months 
                after the date on which assistance is made available 
                for the project by the State or locality under this 
                subsection.
    (f) Amount of State and Local Grants.--
            (1) In general.--Subject to subsection (g), in each fiscal 
        year, the Secretary shall award to each State and locality 
        approved for a grant under this section a grant in an amount 
        based upon the proportion of such State's or locality's need 
        for assistance under this section (as determined by the 
        Secretary in accordance with paragraph (2)) to the aggregate 
        need among all States and localities approved for such 
        assistance for such fiscal year.
            (2) Determination of need.--In determining the proportion 
        of a State's or locality's need under paragraph (1), the 
        Secretary shall consider--
                    (A) the number of units in projects in the State or 
                locality that are eligible for assistance under section 
                6 that, due to market conditions or other factors, are 
                at risk for prepayment, opt-out, or otherwise at risk 
                of being lost to the inventory of affordable housing; 
                and
                    (B) the difficulty that residents of projects in 
                the State or locality that are eligible for assistance 
                under subsection (e) would face in finding adequate, 
                available, decent, comparable, and affordable housing 
                in neighborhoods of comparable quality in the local 
                market, if those projects were not assisted by the 
                State or locality under subsection (e).
    (g) Matching Requirement.--
            (1) In general.--The Secretary may not award a grant under 
        this section to a State or locality for any fiscal year in an 
        amount that exceeds twice the amount that the State or locality 
        certifies, as the Secretary shall require, that the State or 
        locality will contribute for such fiscal year, or has 
        contributed since January 1, 2000, from non-Federal sources for 
        the purposes described in subsection (e)(1).
            (2) Treatment of previous contributions.--Any portion of 
        amounts contributed after January 1, 2000, that are counted for 
        purposes of meeting the requirement under paragraph (1) for a 
        fiscal year may not be counted for such purposes for any 
        subsequent fiscal year.
            (3) Treatment of tax incentives.--Fifty percent of the 
        funds used for the project that are allocable to tax credits 
        allocated under section 42 of the Internal Revenue Code of 
        1986, revenue from mortgage revenue bonds issued under section 
        143 of such Code, or proceeds from the sale of tax-exempt bonds 
        by any State or local government entity shall be considered 
        non-Federal sources for purposes of this subsection.
    (h) Treatment of Subsidy Layering Requirements.--Neither subsection 
(g) nor any other provision of this section may be construed to prevent 
the use of tax credits allocated under section 42 of the Internal 
Revenue Code of 1986 in connection with housing assisted with amounts 
from a grant awarded under this section, 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).
    (i) Reports.--
            (1) Reports to secretary.--Not later than 90 days after the 
        last day of each fiscal year, each State and locality that 
receives a grant under this section during that fiscal year shall 
submit to the Secretary a report on the housing projects assisted with 
amounts made available under the grant.
            (2) Reports to congress.--Based on the reports submitted 
        under paragraph (1), the Secretary shall annually submit to 
        Congress a report on the grants awarded under this section 
        during the preceding fiscal year and the housing projects 
        assisted with amounts made available under those grants.
    (j) Regulations.--Not later than 12 months after the date of 
enactment of this Act, the Secretary shall issue regulations to carry 
out this section.
    (k) Authorization of Appropriations.--There is authorized to be 
appropriated for grants under this section such sums as may be 
necessary for each of fiscal years 2001 through 2004.

SEC. 402. ASSISTANCE FOR NONPROFIT PURCHASERS PRESERVING AFFORDABLE 
              HOUSING.

    (a) Congressional Findings.--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 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.--In this section:
            (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 2001, 2002, 2003, and 2004.

SEC. 403. SECTION 236 ASSISTANCE.

    Section 236(g) of the National Housing Act (12 U.S.C. 1715z-1(g)) 
is amended--
            (1) in paragraph (2), by striking ``Subject to paragraph 
        (3) and notwithstanding'' and inserting ``Notwithstanding''; 
        and
            (2) by striking paragraph (3) and redesignating paragraph 
        (4) as paragraph (3).

SEC. 404. PRESERVATION PROJECTS.

    Section 524(e)(1) of the Multifamily Assisted Housing Reform and 
Affordability Act of 1997 (42 U.S.C. 1437f note) is amended by striking 
``amounts are specifically'' and inserting ``sufficient amounts are''.

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)--
                    (A) by striking ``the refinancing of existing debt 
                of an''; and
                    (B) by inserting ``existing integrated service 
                facility,'' after ``existing board and care home,'';
            (2) in paragraph (4)--
                    (A) by inserting ``existing integrated service 
                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 2 years of maturity, shall 
include a mortgage made to prepay such loan'';
                    (C) in subparagraph (B), by inserting after 
                ``indebtedness'' the following: ``, pay any other costs 
                including repairs, maintenance, minor 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''; and
            (3) by adding at the end the following:
            ``(6) In the case of purchase of an existing hospital (or 
        existing nursing home, existing assisted living facility, 
        existing intermediate care facility, existing board and care 
        home, existing integrated service facility or any combination 
        thereof) the Secretary shall prescribe such terms and 
        conditions as the Secretary deems necessary to assure that--
                    ``(A) the proceeds of the insured mortgage loan 
                will be employed only for the purchase of the existing 
                hospital (or existing nursing home, existing assisted 
                living facility, existing intermediate care facility, 
                existing board and care home, existing integrated 
                service facility or any combination thereof) including 
                the retirement of existing debt (if any), necessary 
                costs associated with the purchase and the insured 
                mortgage financing, and such other costs, including 
                costs of repairs, maintenance, improvements, and 
                additional equipment, as may be approved by the 
                Secretary;
                    ``(B) such existing hospital (or existing nursing 
                home, existing assisted living facility, existing 
                intermediate care facility, existing board and care 
                home, existing integrated service facility, or any 
                combination thereof) is economically viable; and
                    ``(C) the applicable requirements for certificates, 
                studies, and statements of section 232 (for the 
                existing nursing home, existing assisted living 
                facility, intermediate care facility, board and care 
                home, existing integrated service facility or any 
                combination thereof, proposed to be purchased) or of 
                section 242 (for the existing hospital proposed to be 
                purchased) have been met.''.

SEC. 502. NEW INTEGRATED SERVICE FACILITIES.

    Section 232 of the National Housing Act (12 U.S.C. 1715w) is 
amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``are not acutely 
                ill and'';
                    (B) in paragraph (2), by striking ``nevertheless''; 
                and
                    (C) by adding at the end the following:
            ``(4) The development of integrated service facilities for 
        the care and treatment of the elderly and other persons in need 
        of health care and related services, but who do not require 
        hospital care, and the support of health care facilities which 
        provide such health care and related services (including those 
        that support hospitals (as defined in section 242(b))).'';
            (2) in subsection (b)--
                    (A) in paragraph (1), by striking ``acutely ill and 
                not'';
                    (B) in paragraph (4), by inserting after the second 
                period the following: ``Such term includes a parity 
                first mortgage or parity first deed of trust, subject 
                to such terms and conditions as the Secretary may 
                provide.'';
                    (C) in paragraph (6)--
                            (i) by striking subparagraph (A) and 
                        inserting the following:
                    ``(A) meets all applicable 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 applicable 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 
                underwriting requirements of the Secretary for such 
                purposes;''; and
                            (ii) in subparagraph (C), by striking 
                        ``and'' at the end;
                    (D) in paragraph (7), by striking the period at the 
                end and inserting ``; and''; and
                    (E) by adding at the end the following:
            ``(8) the term `integrated service 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, to sick, injured, disabled, elderly, or infirm 
persons, or providing services for the prevention of illness, or any 
combination thereof;
                    ``(B) designed, in whole or in part, to provide a 
                continuum of care, as determined by the Secretary, for 
                the sick, injured, disabled, elderly, or infirm;
                    ``(C) providing clinical services, outpatient 
                services, including community health services and 
                medical practice facilities and group practice 
                facilities, to sick, injured, disabled, elderly, or 
                infirm persons not in need of the services rendered in 
                other facilities insurable under this title, or for the 
                prevention of illness, or any combination thereof; or
                    ``(D)(i) designed, in whole or in part 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 by such hospitals; 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 ``integrated service 
                        facility,'' after ``assisted living facility,'' 
                        the first 2 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 
                        integrated service facility'';
                    (B) in paragraph (2)--
                            (i) in the matter preceding subparagraph 
                        (A), by inserting before ``, including'' the 
                        following: ``or a public body, public agency, 
                        or public corporation eligible under this 
                        section''; and
                            (ii) in subparagraph (B), by striking 
                        ``energy conservation measures'' and all that 
                        follows through ``95-619)'' and inserting 
                        ``energy conserving improvements (as defined in 
                        section 2(a))''.
                    (C) in paragraph (4)(A)--
                            (i) in the first sentence--
                                    (I) by inserting ``, and integrated 
                                service facilities that include such 
                                nursing home and intermediate care 
                                facilities,'' before ``, the 
                                Secretary'';
                                    (II) by striking ``or section 1521 
                                of the Public Health Service Act'' and 
                                inserting ``of the Public Health 
                                Service Act, or other applicable 
                                Federal law (or, in the absence of 
                                applicable Federal law, by the 
                                Secretary),'';
                                    (III) by inserting ``, or the 
                                portion of an integrated service 
                                facility providing such services,'' 
                                before ``covered by the mortgage,''; 
                                and
                                    (IV) by inserting ``or for such 
                                nursing or intermediate care services 
                                within an integrated service facility'' 
                                before ``, and (ii)'';
                            (ii) in the second sentence, by inserting 
                        ``(which may be within an integrated service 
                        facility)'' after ``home and facility'';
                            (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 
                                integrated service 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 an 
                                integrated service 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''; and
                                    (V) in clause (ii), by striking 
                                ``or section 1521 of the Public Health 
                                Service Act'' and inserting ``of the 
                                Public Health Service Act, or other 
                                applicable Federal law (or, in the 
                                absence of applicable Federal law, by 
                                the Secretary),'';
                            (iv) by striking the penultimate sentence 
                        and inserting the following: ``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 ``integrated service 
        facilities,'' after ``assisted living facilities,''.

SEC. 503. HOSPITALS AND HOSPITAL-BASED INTEGRATED SERVICE 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 adding ``and'' 
                        at the end;
                            (ii) by striking subparagraph (B); and
                            (iii) by redesignating subparagraph (C) as 
                        subparagraph (B) and striking ``and'' at the 
                        end;
                    (B) in paragraph (2), by striking ``respectfully'' 
                and all that follows through the period at the end 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''; and
                    (C) by adding at the end the following:
            ``(3) the term `integrated service facility' has the 
        meaning given the term in section 232(b).'';
            (2) in subsection (c), by striking ``title VII of'' and 
        inserting ``title VI of'';
            (3) in subsection (d)--
                    (A) in the matter preceding paragraph (1), by 
                inserting after ``operation,'' the following: ``or that 
                covers an integrated service facility owned or to be 
                owned by an applicant or proposed mortgagor that also 
                owns a hospital in the same market area, 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 
                        an integrated service facility, is also the 
                        owner of a hospital facility''; and
                            (ii) by adding at the end the following: 
                        ``A mortgage insured hereunder covering an 
                        integrated service facility may only cover the 
                        real and personal property where the eligible 
                        facility will be located.'';
                    (C) in paragraph (2)(A), by inserting ``or 
                integrated service facility'' before the comma; and
                    (D) in paragraph (2)(B), by striking ``energy 
                conservation measures'' and all that follows through 
                ``95-619)'' and inserting ``energy conserving 
                improvements (as defined in section 2(a))'';
                    (E) in paragraph (4)--
                            (i) in the first sentence--
                                    (I) by inserting ``for a hospital'' 
                                after ``any mortgage''; and
                                    (II) by striking ``or section 1521 
                                of the Public Health Service Act'' and 
                                inserting ``of the Public Health 
                                Service Act, or other applicable 
                                Federal law (or, in the absence of 
                                applicable Federal law, by the 
                                Secretary),'';
                            (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 subparagraph (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) of the Public Health Service Act, or 
                        other applicable Federal law (or, in the 
                        absence of applicable Federal law, by the 
                        Secretary). 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
            (4) in subsection (f), by inserting ``and public integrated 
        service facilities'' after ``public hospitals''.

SEC. 504. HOME EQUITY CONVERSION MORTGAGES.

    (a) In General.--Section 255 of the National Housing Act (12 U.S.C. 
1715z-20) is amended--
            (1) by redesignating subsection (k) as subsection (l); and
            (2) by inserting after subsection (j) the following:
    ``(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 an actuarial study conducted by the 
        Secretary.
            ``(5) 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.''.
    (b) Regulations.--
            (1) In general.--Notwithstanding sections 2 and 3 of this 
        Act, the Secretary shall issue any final regulations necessary 
        to implement the amendments made by subsection (a) of this 
        section, which shall take effect not later than the expiration 
        of the 180-day period beginning on the date of enactment of 
        this Act.
            (2) Procedure.--The regulations under this subsection 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).
                                 <all>