110 HR 2930 EH: Section 202 Supportive Housing for the Elderly Act of 2007 U.S. House of Representatives 0 text/xml EN Pursuant to Title 17 Section 105 of the United States Code, this file is not subject to copyright protection and is in the public domain.
I 110th CONGRESS 1st Session H. R. 2930 IN THE HOUSE OF REPRESENTATIVES AN ACT To amend section 202 of the Housing Act of 1959 to improve the program under such section for supportive housing for the elderly, and for other purposes.
1.
Short title and table of contents
(a)
Short title
This Act may be cited as the Section 202 Supportive Housing for the Elderly Act of 2007. (b)
Table of contents
The table of contents for this Act is as follows: Sec. 1. Short title and table of contents. Title I—New construction reforms Sec. 101. Project rental assistance. Sec. 102. Selection criteria. Sec. 103. Development cost limitations. Sec. 104. Owner deposits. Sec. 105. Definition of private nonprofit organization. Sec. 106. Preferences for homeless elderly. Sec. 107. Nonmetropolitan allocation. Title II—Refinancing Sec. 201. Approval of prepayment of debt. Sec. 202. Sources of refinancing. Sec. 203. Use of unexpended amounts. Sec. 204. Use of project residual receipts. Sec. 205. Additional provisions. Sec. 206. Study of mortgage sale demonstration. Title III—Assisted living facilities Sec. 301. Definition of assisted living facility. Sec. 302. Monthly assistance payment under rental assistance. Title IV—Facilitating affordable housing preservation transactions Sec. 401. Use of sale or refinancing proceeds.
<enum>I</enum><header>New construction reforms</header> <section id="HCA13774BC19C43B3B33407B4514FD2F2"><enum>101.</enum><header>Project rental assistance</header><text display-inline="no-display-inline">Paragraph (2) of section 202(c) of the Housing Act of 1959 (<external-xref legal-doc="usc" parsable-cite="usc/12/1701q">12 U.S.C. 1701q(c)(2)</external-xref>) is amended—</text> <paragraph id="H0AE0E42210FB484582A81BD3D545D7E4"><enum>(1)</enum><text>by inserting after <quote><header-in-text level="paragraph" style="OLC">assistance</header-in-text>.—</quote> the following: <quote>(A) <header-in-text level="subparagraph" style="OLC">Initial project rental assistance contract</header-in-text>.—</quote>;</text></paragraph> <paragraph id="HD26F1D07B92B404CB3B776AC371BF28"><enum>(2)</enum><text>in the last sentence, by striking <quote>may</quote> and inserting <quote>shall</quote>; and</text></paragraph> <paragraph id="HA240E1DE294D4726B46C82E4DB99001E"><enum>(3)</enum><text>by adding at the end the following new subparagraph:</text> <quoted-block id="H9B33DB06A31C4817AE26C9CF1C262CDA" style="OLC"> <subparagraph id="H47BB8E3FFDD04F07BDF62B700463EDD" indent="up1"><enum>(B)</enum><header>Renewal of and increases in contract amounts</header> <clause id="H65A97EC6B1BA41CE94B03D967177AE43"><enum>(i)</enum><header>Expiration of contract term</header><text>Upon the expiration of each contract term, the Secretary shall adjust the annual contract amount to provide for reasonable project costs, and any increases, including adequate reserves, supportive services, and service coordinators, except that any contract amounts not used by a project during a contract term shall not be available for such adjustments upon renewal.</text></clause> <clause id="HE938A7E5A8BB4F6988BB77EF2D7E5714"><enum>(ii)</enum><header>Emergency situations</header><text display-inline="yes-display-inline">In the event of emergency situations that are outside the control of the owner, the Secretary shall increase the annual contract amount, subject to reasonable review and limitations as the Secretary shall provide.</text></clause></subparagraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <section id="HF2796142EEAA479FBD06F7AC6087C807"><enum>102.</enum><header>Selection criteria</header><text display-inline="no-display-inline">Subsection (f) of section 202 of the Housing Act of 1959 (<external-xref legal-doc="usc" parsable-cite="usc/12/1701q">12 U.S.C. 1701q(f)</external-xref>) is amended—</text> <paragraph id="H2332DCEBB6A64729A5017FEFE783AB2"><enum>(1)</enum><text>by striking <quote><header-in-text level="subsection" style="OLC">Selection criteria</header-in-text>.—</quote> and inserting <quote><header-in-text level="subsection" style="OLC">Initial selection criteria and processing</header-in-text>.—(1) <header-in-text level="paragraph" style="OLC">Selection criteria</header-in-text>.—</quote>;</text></paragraph> <paragraph id="H2D08DDD62B14414581EA24ACA8B47920" display-inline="no-display-inline"><enum>(2)</enum><text>by redesignating paragraphs (1), (2), (3), (4), (5), (6), and (7) as subparagraphs (A), (B), (C), (D), (E), (G), and (H), respectively;</text></paragraph> <paragraph id="H2E258C91E45D4AA188D4F71B2F83DEC7" display-inline="no-display-inline"><enum>(3)</enum><text>by inserting after subparagraph (E) (as so redesignated by paragraph (2) of this subsection) the following new subparagraph:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H6DA8B4F9D5DC45EFB1DDCB5742A7AE01"> <subparagraph id="H03EF0DDF0E09425996442C71B697ED36" indent="up1"><enum>(F)</enum><text>the extent to which the applicant has ensured that a service coordinator will be employed or otherwise retained for the housing, who has the managerial capacity and responsibility for carrying out the actions described in subparagraphs (A) and (B) of subsection (g)(2);</text></subparagraph><after-quoted-block>; and</after-quoted-block></quoted-block></paragraph> <paragraph id="H9E88BE6D691A487B9C1858FD6F40FEC3"><enum>(4)</enum><text>by adding at the end the following new paragraph:</text> <quoted-block id="H4A0AD47A53BA4A64B71E31AAAFC51797" style="OLC"> <paragraph id="H68D94C62CFC84D4DA212935C6FCF2602" indent="up1"><enum>(2)</enum><header>Delegated processing</header> <subparagraph id="H9CD2AE1C415449AEA03CED6E7721AD2B"><enum>(A)</enum><text display-inline="yes-display-inline">In issuing a capital advance under this subsection for any project for which financing for the purposes described in the last two sentences of subsection (b) is provided by a combination of a capital advance under subsection (c)(1) and sources other than this section, within 30 days of award of the capital advance, the Secretary shall delegate review and processing of such projects to a State or local housing agency that—</text> <clause id="HD0CF6ADD97AA430FBF55005BFDD9086"><enum>(i)</enum><text>is in geographic proximity to the property;</text></clause> <clause id="H246EBD6E09214AE1B0EF629202BD5389"><enum>(ii)</enum><text>has demonstrated experience in and capacity for underwriting multifamily housing loans that provide housing and supportive services;</text></clause> <clause id="H6AEFE57931B64B098425076BEE51548F"><enum>(iii)</enum><text>may or may not be providing low-income housing tax credits in combination with the capital advance under this section, and</text></clause> <clause id="HDE7047D0BA39467EA94700A44EC63C60"><enum>(iv)</enum><text>agrees to issue a firm commitment within 12 months of delegation.</text></clause></subparagraph> <subparagraph id="HD1608676141D4DB4B42B2146B8A7FE29" display-inline="no-display-inline"><enum>(B)</enum><text display-inline="yes-display-inline">The Secretary shall retain the authority to process capital advances in cases in which no State or local housing agency has applied to provide delegated processing pursuant to this paragraph or no such agency has entered into an agreement with the Secretary to serve as a delegated processing agency.</text></subparagraph> <subparagraph id="H32D6B06DC9004BC1AFB1F577BCA95961"><enum>(C)</enum><text display-inline="yes-display-inline">An agency to which review and processing is delegated pursuant to subparagraph (A) may assess a reasonable fee which shall be included in the capital advance amounts and may recommend project rental assistance amounts in excess of those initially awarded by the Secretary. The Secretary shall develop a schedule for reasonable fees under this subparagraph to be paid to delegated processing agencies, which shall take into consideration any other fees to be paid to the agency for other funding provided to the project by the agency, including bonds, tax credits, and other gap funding.</text></subparagraph> <subparagraph id="H3D40561D8205404A8E817DF66B400040"><enum>(D)</enum><text>Under such delegated system, the Secretary shall retain the authority to approve rents and development costs and to execute a capital advance within 60 days of receipt of the commitment from the State or local agency. The Secretary shall provide to such agency and the project sponsor, in writing, the reasons for any reduction in capital advance amounts or project rental assistance and such reductions shall be subject to appeal.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <section id="H247B72575E8942AFBD25CFBBB5076D42"><enum>103.</enum><header>Development cost limitations</header><text display-inline="no-display-inline">Section 202(h)(1) of the Housing Act of 1959 (<external-xref legal-doc="usc" parsable-cite="usc/12/1701q">12 U.S.C. 1701q(h)(1)</external-xref>) is amended, in the matter preceding subparagraph (A), by inserting <quote>reasonable</quote> before <quote>development cost limitations</quote>.</text></section> <section id="HEA401717BE31478EA6D15D846702EA68"><enum>104.</enum><header>Owner deposits</header><text display-inline="no-display-inline">Section 202(j)(3)(A) of the Housing Act of 1959 (<external-xref legal-doc="usc" parsable-cite="usc/12/1701q">12 U.S.C. 1701q(j)(3)(A)</external-xref>) is amended by inserting after the period at the end the following: <quote>Such amount shall be used only to cover operating deficits during the first three years of operations and shall not be used to cover construction shortfalls or inadequate initial project rental assistance amounts.</quote>.</text></section> <section id="HC2EF26FA9E9540D2BC21BDB4F4183B29"><enum>105.</enum><header>Definition of private nonprofit organization</header><text display-inline="no-display-inline">Subparagraph (B) of section 202(k)(4) of the Housing Act of 1959 (<external-xref legal-doc="usc" parsable-cite="usc/12/1701q">12 U.S.C. 1701q(k)(4)(B)</external-xref>) is amended by inserting before the semicolon the following: <quote>; except that, in the case of any national organization that is the owner of multiple housing projects assisted under this section, the organization may comply with clause (i) of this subparagraph by having a local advisory board to the governing board of the organization the membership which is selected in the manner required under clause (i)</quote>.</text></section> <section id="H2890467394C44A0EA2660092569CAED"><enum>106.</enum><header>Preferences for homeless elderly</header><text display-inline="no-display-inline">Subsection (j) of section 202 (<external-xref legal-doc="usc" parsable-cite="usc/12/1701q">12 U.S.C. 1701q(j)</external-xref>) is amended by adding at the end the following new paragraph:</text> <quoted-block style="OLC" display-inline="no-display-inline" id="H90CC0FD45ECA4151B967E200FF6D500"> <paragraph id="H47BC5B25C8C94878A4F63B852ED3BD5"><enum>(9)</enum><header>Preferences for homeless elderly</header><text display-inline="yes-display-inline">The Secretary shall permit an owner of housing assisted under this section to establish for, and apply to, the housing a preference in tenant selection for the homeless elderly, either within the application or after selection pursuant to subsection (f), but only if—</text> <subparagraph id="H59E302BB2DDA401C9390C9429AD275F"><enum>(A)</enum><text>such preference is consistent with paragraph (2) of this subsection; and</text></subparagraph> <subparagraph id="H3BF2C2E3663E4032912CDB6F6C023947"><enum>(B)</enum><text>the owner demonstrates that the supportive services identified pursuant to subsection (e)(4), or additional supportive services to be made available upon implementation of the preference, will meet the needs of the homeless elderly, maintain safety and security for all tenants, and be provided on a consistent, long-term, and economical basis.</text></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="HFA269754274E48F991CE3043826089D1"><enum>107.</enum><header>Nonmetropolitan allocation</header><text display-inline="no-display-inline">Paragraph (3) of section 202(l) of the Housing Act of 1959 (<external-xref legal-doc="usc" parsable-cite="usc/12/1701q">12 U.S.C. 1701q(l)(3)</external-xref>) is amended by inserting after the period at the end the following: <quote>In complying with this paragraph, the Secretary shall either operate a national competition for the nonmetropolitan funds or make allocations to regional offices of the Department of Housing and Urban Development.</quote>. </text></section> <enum>II</enum><header>Refinancing</header> <section id="HF7E0A493888149AAAF8583F862600034"><enum>201.</enum><header>Approval of prepayment of debt</header><text display-inline="no-display-inline">Subsection (a) of section 811 of the American Homeownership and Economic Opportunity Act of 2000 (<external-xref legal-doc="usc" parsable-cite="usc/12/1701q">12 U.S.C. 1701q</external-xref> note) is amended—</text> <paragraph id="HB9A91446612647CB983B24907D1917BF"><enum>(1)</enum><text>in the matter preceding paragraph (1), by inserting <quote>, for which the Secretary’s consent to prepayment is required</quote> after <quote>Act)</quote>;</text></paragraph> <paragraph id="H8B0E62FF97D344A4AD5DD7E585002E07"><enum>(2)</enum><text>in paragraph (1)—</text> <subparagraph id="H7039F871630F432EB0A315C300FFAA6"><enum>(A)</enum><text>by inserting <quote>project-based</quote> before <quote>rental assistance payments contract</quote>;</text></subparagraph> <subparagraph id="H53BA2386A05449638437638E7D635844"><enum>(B)</enum><text>by inserting <quote>project-based</quote> before <quote>rental housing assistance programs</quote>; and</text></subparagraph> <subparagraph id="HF20A8CF265C0466EB299FA40FFF87DEE"><enum>(C)</enum><text>by inserting <quote>, or any successor project-based rental assistance program,</quote> after <quote>1701s))</quote>; and</text></subparagraph></paragraph> <paragraph id="H761861FD32FC4545B7FEE9B507512285"><enum>(3)</enum><text>in paragraph (2)—</text> <subparagraph id="H57DEF7A7A7DF46D3BAE731EB9B51BA7C"><enum>(A)</enum><text>by inserting <quote>(A)</quote> before <quote>a lower</quote>; and</text></subparagraph> <subparagraph id="H89E0BC777BF04FDF98502DC017B9A654"><enum>(B)</enum><text display-inline="yes-display-inline">by inserting before the period at the end the following: <quote>, or (B) a transaction in which the project owner will address the physical needs of the project, but only if, as a result of the refinancing (i) the rent charges for unassisted families residing in the project do not increase or such families are provided rental assistance under a senior preservation rental assistance contract for the project pursuant to subsection (e), and (ii) the overall cost for providing rental assistance under section 8 for the project (if any) does not increase</quote>.</text></subparagraph></paragraph></section> <section id="HBBF5ABF6BE1E4710BDC4BFE848BB27C5"><enum>202.</enum><header>Sources of refinancing</header><text display-inline="no-display-inline">The last sentence of section 811(b) of the American Homeownership and Economic Opportunity Act of 2000 (<external-xref legal-doc="usc" parsable-cite="usc/12/1701q">12 U.S.C. 1701q</external-xref> note) is amended—</text> <paragraph id="HDAA3C0534F084206823FE256E83F5755"><enum>(1)</enum><text>by inserting after <quote>National Housing Act,</quote> the following: <quote>or approving the standards used by authorized lenders to underwrite a loan refinanced with risk sharing as provided by section 542 of the Housing and Community Development Act of 1992 (<external-xref legal-doc="usc" parsable-cite="usc/12/1701">12 U.S.C. 1701</external-xref> note), </quote>; and</text></paragraph> <paragraph id="H363466258ACC4291A790CE3E30944E66"><enum>(2)</enum><text>by striking <quote>may</quote> and inserting <quote>shall</quote>.</text></paragraph></section> <section id="H12136A35E1B04680AFF7D44FA94069B"><enum>203.</enum><header>Use of unexpended amounts</header><text display-inline="no-display-inline">Subsection (c) of section 811 of the American Homeownership and Economic Opportunity Act of 2000 (<external-xref legal-doc="usc" parsable-cite="usc/12/1701q">12 U.S.C. 1701q</external-xref> note) is amended—</text> <paragraph id="H53A3A522DC424E6D84410706F4B8F8F6"><enum>(1)</enum><text>in the matter preceding paragraph (1), by inserting after <quote>tenants,</quote> the following: <quote>or is used in the provision of affordable rental housing and related social services for elderly persons by the private nonprofit organization project owner, private nonprofit organization project sponsor, or private nonprofit organization project developer,</quote>;</text></paragraph> <paragraph id="H904135BB12F14CB5A9C25C993C81EE8"><enum>(2)</enum><text>in paragraph (1), by striking <quote>not more than 15 percent of</quote>;</text></paragraph> <paragraph id="H32B082893F774FB2A39DECBBD6CDC19"><enum>(3)</enum><text>in paragraph (2), by inserting before the semicolon the following; <quote>, including reducing the number of units and reconfiguring units that are functionally obsolete, unmarketable, or not economically viable</quote>;</text></paragraph> <paragraph id="H3C447CE9DDDB4D06AFB44264B2EA515F"><enum>(4)</enum><text>in paragraph (3), by striking <quote>or</quote> at the end;</text></paragraph> <paragraph id="H5F1BF9B5826142FE8696C2ED22021F7E"><enum>(5)</enum><text>in paragraph (4) by striking the period at the end and inserting a semicolon; and</text></paragraph> <paragraph id="H356069EF2BD542F281BDFE4FDE4DD0A"><enum>(6)</enum><text>by adding at the end the following new paragraphs:</text> <quoted-block id="HB7B44D74ECDA4A70A5B2AF065022B36" style="OLC"> <paragraph id="H8569B6B6D6CB4C8680A6BF46127F00D4"><enum>(5)</enum><text>the payment to the project owner, sponsor, or third party developer of a developer’s fee in an amount not to exceed—</text> <subparagraph id="HE86DA92BD2664B13868CBDCF58645915"><enum>(A)</enum><text>in the case of a project refinanced through a State low income housing tax credit program, the fee permitted by the low income housing tax credit program as calculated by the State program as a percentage of acceptable development cost as defined by that State program; or</text></subparagraph> <subparagraph id="H02AEFEC7FB84496481DCB88CF66EC74"><enum>(B)</enum><text>in the case of a project refinanced through any other source of refinancing, 15 percent of the acceptable development cost; or</text></subparagraph></paragraph> <paragraph id="HC9CBED5A19B944CFB3A688ADCEBB4CE1"><enum>(6)</enum><text display-inline="yes-display-inline">the payment of equity, if any, to—</text> <subparagraph id="HB675CE86BE6F41EFAADE5E92B63FC6EA"><enum>(A)</enum><text>in the case of a sale, to the seller or the sponsor of the seller, in an amount equal to the lesser of the purchase price or the appraised value of the property, as each is reduced by the cost of prepaying any outstanding indebtedness on the property and transaction costs of the sale; or</text></subparagraph> <subparagraph id="H206CFE59EEA045E99DBAF163E9D7CCB3"><enum>(B)</enum><text>in the case of a refinancing without the transfer of the property, to the project owner or the project sponsor, in an amount equal to the difference between the appraised value of the property less the outstanding indebtedness and total acceptable development cost.</text></subparagraph></paragraph> <quoted-block-continuation-text quoted-block-continuation-text-level="subsection">For purposes of paragraphs (5)(B) and (6)(B), the term “acceptable development cost” shall include, as applicable, the cost of acquisition, rehabilitation, loan prepayment, initial reserve deposits, and transaction costs.</quoted-block-continuation-text><after-quoted-block>.</after-quoted-block></quoted-block></paragraph></section> <section id="H9FD4ED85457944D0A097A103C007C86C"><enum>204.</enum><header>Use of project residual receipts</header><text display-inline="no-display-inline">Paragraph (1) of section 811(d) of the American Homeownership and Economic Opportunity Act of 2000 (<external-xref legal-doc="usc" parsable-cite="usc/12/1701q">12 U.S.C. 1701q</external-xref> note) is amended—</text> <paragraph id="H152F4F9E454448CAAA1393F99F8906B6"><enum>(1)</enum><text>by striking <quote>not more than 15 percent of</quote>; and</text></paragraph> <paragraph id="H56F1F1B6AB90435DA1B83EFFAAF12181"><enum>(2)</enum><text>by inserting before the period at the end the following: <quote>or other purposes approved by the Secretary</quote>.</text></paragraph></section> <section id="HDD1390EEC88F47FC00EFD44C6EA4CAFD"><enum>205.</enum><header>Additional provisions</header><text display-inline="no-display-inline">Section 811 of the American Homeownership and Economic Opportunity Act of 2000 (<external-xref legal-doc="usc" parsable-cite="usc/12/1701q">12 U.S.C. 1701q</external-xref> note) is amended by adding at the end the following new subsections:</text> <quoted-block id="H39E753219F824BBBB94EC46552BB357D" style="OLC"> <subsection id="H26E56B10C6FA425B8C37C9627324CA00"><enum>(e)</enum><header>Senior preservation rental assistance contracts</header><text display-inline="yes-display-inline">Notwithstanding any other provision of law, in connection with a prepayment plan for a project approved under subsection (a) by the Secretary or as otherwise approved by the Secretary, to prevent displacement of elderly residents of the project in the case of refinancing or recapitalization and to further preservation and affordability of such project, at the election of the private nonprofit organization owner of the project, the Secretary shall provide project-based rental assistance for the project under a senior preservation rental assistance contract, as follows:</text> <paragraph id="H61E3F1CAEF1643CE0060B054EF7813D7"><enum>(1)</enum><text>Assistance under the contract shall be made available to the private nonprofit organization owner—</text> <subparagraph id="HFEA0B1DD9FE94570A91B78B97287487D"><enum>(A)</enum><text display-inline="yes-display-inline">for a term of at least 20 years, subject to annual appropriations, and</text></subparagraph> <subparagraph id="H07C3BC8B955F43DA86B6F8282D26410"><enum>(B)</enum><text>under the same rules governing project-based rental assistance made available under section 8 of the Housing Act of 1937.</text></subparagraph></paragraph> <paragraph id="H2C97D0D897B94F5C9171AAE67F03A3EF"><enum>(2)</enum><text>Any projects for which a senior preservation rental assistance contract is provided shall be subject to a use agreement to ensure continued project affordability having a term of the longer of (A) the term of the senior preservation rental assistance contract, or (B) such term as is required by the new financing.</text></paragraph></subsection> <subsection id="H5BBAED6C039F41B8AFD118C4E89250C3"><enum>(f)</enum><header>Flexible subsidy debt</header><text>The Secretary shall waive the requirement that debt for a project pursuant to the flexible subsidy program under section 201 of the Housing and Community Development Amendments of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/12/1715z-1a">12 U.S.C. 1715z–1a</external-xref>) be prepaid in connection with a prepayment, refinancing, or transfer under this section of a project if such waiver is necessary for the financial feasibility of the transaction and is consistent with the long-term preservation of the project as affordable housing.</text></subsection> <subsection id="H6B70C689113A4ED18E73F8104473E01"><enum>(g)</enum><header>Prepayment when secretary’s consent not required</header><text>In connection with the prepayment under this section of a loan for which the Secretary’s consent to prepayment is not required, at the project owner’s election—</text> <paragraph id="HE851C24919794571BFB29DDA003CB612"><enum>(1)</enum><text>all tenants of the project shall be eligible for enhanced vouchers in accordance with section 8(t) of the United States Housing Act of 1937 (<external-xref legal-doc="usc" parsable-cite="usc/42/1437f">42 U.S.C. 1437f(t)</external-xref>); or</text></paragraph> <paragraph id="HC402B455D51E4198BBDF00D6F8B2DE3"><enum>(2)</enum><text>if the project will continue to be owned by a private nonprofit organization owner, such private nonprofit organization owner may enter into a senior preservation rental assistance contract with the Secretary in accordance with subsection (e).</text></paragraph></subsection> <subsection id="H362EDF9F24D84B62B0AB903713135D3C"><enum>(h)</enum><header>Definition of private nonprofit organization</header><text>For purposes of this section, the term <quote>private nonprofit organization</quote> has the meaning given such term in section 202(k) of the Housing Act of 1959 (<external-xref legal-doc="usc" parsable-cite="usc/12/1701q">12 U.S.C. 1701q(k)</external-xref>).</text></subsection><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="H48470BC5383B476AB655E55443C5515F"><enum>206.</enum><header>Study of mortgage sale demonstration</header> <subsection id="H1E13766A317D496699567FA8E367C298"><enum>(a)</enum><header>Study</header><text display-inline="yes-display-inline">The Secretary of Housing and Urban Development shall conduct a study to evaluate the estimated costs and potential benefits of carrying out a program under which the Secretary may sell mortgages associated with loans made under section 202 of the Housing Act of 1959 (as in effect before the enactment of the Cranston-Gonzalez National Affordable Housing Act) in accordance with the terms for sales of subsidized loans on multifamily housing projects under section 203 of the Housing and Community Development Amendments of 1978 (<external-xref legal-doc="usc" parsable-cite="usc/12/1701z-11">12 U.S.C. 1701z–11</external-xref>), and of carrying out a demonstration program for sales of portfolios of such mortgages to housing finance agencies in three States. In conducting such study, the Secretary shall place particular emphasis on determining whether the asset management functions and activities related to such loans and properties could be accomplished pursuant to such sales in a timely, effective, and efficient manner, including an analysis of the potential impacts on approvals of refinancings and preservation transactions, rent increase requests, and withdrawals from reserves or residual receipts (in cases in which there is no contract administrator).</text></subsection> <subsection id="H5253EC1F03804389AEC7729CAB7E4C46"><enum>(b)</enum><header>Report</header><text display-inline="yes-display-inline">Not later than the expiration of the 12-month period beginning upon the date of the enactment of this Act, the Secretary shall submit a report to the Committee on Financial Services of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate on the findings of the study and any recommendations for implementing such a program and such a demonstration.</text></subsection></section> <enum>III</enum><header>Assisted living facilities</header> <section id="HB8B1794B24494C9883BE18D4CFF5368F"><enum>301.</enum><header>Definition of assisted living facility</header><text display-inline="no-display-inline">Section 202b(g) of the Housing Act of 1959 (<external-xref legal-doc="usc" parsable-cite="usc/12/1701q-2">12 U.S.C. 1701q–2(g)</external-xref>) is amended by striking paragraph (1) and inserting the following new paragraph:</text> <quoted-block display-inline="no-display-inline" id="H13DF4A44ACAE416E8EBEE8B6DCA1015B" style="OLC"> <paragraph id="H90E6031A5FCD4860B9B4989CD0AC299F"><enum>(1)</enum><text display-inline="yes-display-inline">the term <quote>assisted living facility</quote> means a facility that—</text> <subparagraph id="H5D5FB6037A5141C7896C9E876F5053DE"><enum>(A)</enum><text>is owned by a private nonprofit organization; and</text></subparagraph> <subparagraph id="HA0430D0C6FED47988E3C180893574492"><enum>(B)</enum> <clause commented="no" display-inline="yes-display-inline" id="H234171D4516D4D379856526947719865"><enum>(i)</enum><text>is licensed and regulated by the State (or if there is no State law providing for such licensing and regulation by the State, by the municipality or other political subdivision in which the facility is located); or</text></clause> <clause id="H8F34C7F9317B4309BE13D8171EC65B22" indent="up1"><enum>(ii)</enum> <subclause commented="no" display-inline="yes-display-inline" id="H86E6D0E2AFA24621AFFFDAF759AB6230"><enum>(I)</enum><text display-inline="yes-display-inline">makes available, directly or through recognized and experienced third party service providers, to residents at the resident’s request or choice supportive services to assist the residents in carrying out the activities of daily living, such as bathing, dressing, eating, getting in and our of bed or chairs, walking, going outdoors, toileting, laundry, home management, preparing meals, shopping for personal items, obtaining and taking medication, managing money, using the telephone, or performing light of heavy housework, and which may make available to residents home health care service, such as nursing and therapy, and certain health related services; and</text></subclause> <subclause id="H1B74C3171CF44DD5BC6766F82B3ED34E" indent="up1"><enum>(II)</enum><text>provides separate dwelling units for residents, each of which may contain a full kitchen and bathroom and which includes common rooms and other facilities appropriate for the provision of supportive services to the residents of the facility; and</text></subclause></clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block></section> <section id="H6831CBFE35994F97B1403B9B65666308"><enum>302.</enum><header>Monthly assistance payment under rental assistance</header><text display-inline="no-display-inline">Clause (iii) of section 8(o)(18)(B) of the United States Housing Act of 1937 (<external-xref legal-doc="usc" parsable-cite="usc/42/1437f">42 U.S.C. 1437f(o)(18)(B)(iii)</external-xref>) is amended by inserting before the period at the end the following: <quote>, except that a family may be required at the time the family initially receives such assistance to pay rent in an amount exceeding 40 percent of the monthly adjusted income of the family by such an amount or percentage as the Secretary deems appropriate</quote>.</text></section> <enum>IV</enum><header>Facilitating affordable housing preservation transactions</header> <section id="H66C2DD8083404CD3A0B3D26C068779AE"><enum>401.</enum><header>Use of sale or refinancing proceeds</header><text display-inline="no-display-inline">Notwithstanding any other provision of law, in connection with the sale or refinancing of a multifamily housing project, or the transfer of an assistance contract on such a property, that requires the approval of the Secretary of Housing and Urban Development, the Secretary shall not impose any condition that restricts the amount or use of sale or refinancing proceeds, or requires the filing of a financial report, unless such condition is expressly authorized by an existing contract entered into between the Secretary (or the Secretary’s designee) and the project owner before the imposition of a condition prohibited by this section or is a general condition for new financing with a mortgage insured by the Secretary. Any such condition previously imposed by the Secretary after January 1, 2005, shall, at the option of the project owner, be considered void and not enforceable, and any agreement containing such a condition shall be rescinded and may be reissued without the void condition.</text></section> Passed the House of Representatives December 5, 2007.Lorraine C. Miller,Clerk.