1.Short title and table of
contents
(a)This Act may be cited
as the Section 202 Supportive Housing
for the Elderly Act of 2008
.
(b)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.
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.
TITLE III—Assisted living facilities
Sec. 301. Definition of assisted living facility.
Sec. 302. Monthly assistance payment under rental
assistance.
TITLE IV—Facilitating affordable housing preservation
transactions
Sec. 401. Use of sale or refinancing proceeds.
TITLE V—National senior housing clearinghouse
Sec. 501. National senior housing clearinghouse.
<enum>I</enum><header>New
construction reforms</header>
<section id="HFDE58AC4CC6D4740948EFB90CA72BBD9"><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="HD24620C40B1A47989F861281F69DBB2B"><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="H7D93DCE29A2347A3A8FD71078889831F"><enum>(2)</enum><text>in the last
sentence, by striking <quote>may</quote> and inserting <quote>shall</quote>;
and</text>
</paragraph><paragraph id="H393893F545FF41A68797358FA8693BE1"><enum>(3)</enum><text>by adding at the
end the following new subparagraph:</text>
<quoted-block id="H5196FD6BD2784D50B1C59E2F6F60822E" style="OLC">
<subparagraph id="H341BF82D28AF46BD907DA4D2811B54C" indent="up1"><enum>(B)</enum><header>Renewal of and increases in contract
amounts</header>
<clause id="HBEFCD2810E0E485A81845EA5BCF84E78"><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="H78F199CE37C14E8F8EB02F84ACE18D64"><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="HA45F799B262C433582189407298F1286"><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="H485B15D6403B4263BFB1E818EDF20048"><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="H0AFFCE3A60854500B3F2FF55714CB5F"><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="H459C0FCD0D60473082E30176A8A3999C"><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 display-inline="no-display-inline" id="HA6EFC8BCFD7340CB9E87E308FB759601" style="OLC">
<subparagraph id="HB0CEE478AF544764B9B1D3FC0B5BEE7" 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="HC958C94BC65A4E329C582DD710FDA69F"><enum>(4)</enum><text>by adding at the
end the following new paragraph:</text>
<quoted-block id="H4F5914EE5ED24F1CA0527E188BFA3F05" style="OLC">
<paragraph id="H419B8934B73B41D2BA00DE47ADBCFA95" indent="up1"><enum>(2)</enum><header>Delegated processing</header>
<subparagraph commented="no" id="HE16E6483BD3544AEB1BDA09372A35477"><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="H67DD002391F84AEF00009C00C996352"><enum>(i)</enum><text>is in geographic proximity to the
property;</text>
</clause><clause id="H14994C6B7DC24E04ABA263D22DEE0007"><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="H541F163A05EC4550AD9723B5D6AAF546"><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="H29C82C3459FA4F4A8544F65F3CF55E42"><enum>(iv)</enum><text>agrees to issue a firm commitment
within 12 months of delegation.</text>
</clause></subparagraph><subparagraph id="HD58EEC2842D94064A3E66B61EF27B8C"><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. 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="id8C54EAA47532449BB165476D75918C7E"><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.</text>
</subparagraph><subparagraph id="H773F59FFF8E44CABBE31FC6141E17076"><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="H207CF75C7889408C83DD99DE1B11E262"><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="HB470D125B45646F6A6A0733458488E56"><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 3 years
of operations and shall not be used to cover construction shortfalls or
inadequate initial project rental assistance amounts.</quote>.</text>
</section><section id="H534B94FE96054561B834009211901762"><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="H6E9198AE3F7A46CD93A2F900269B77AC"><enum>106.</enum><header>Preferences for
homeless elderly</header><text display-inline="no-display-inline">Subsection
(j) of section 202 of the Housing Act of 1959 (12 U.S.C. 1701q(j)) is amended
by adding at the end the following new paragraph:</text>
<quoted-block display-inline="no-display-inline" id="H107F3F3F547D4609AF07E54B00596000" style="OLC">
<paragraph id="H2E72E498A6F74AEE001F45B261FA1629"><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, such 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="H55446B60DF9F477EA547706342E47EB3"><enum>(A)</enum><text>such preference is
consistent with paragraph (2); and</text>
</subparagraph><subparagraph id="H18829F867ECA4E12987DB1FF4E604EF0"><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><enum>II</enum><header>Refinancing</header>
<section id="H948039B6208A4FE0BE83811E00B736D"><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="H0664C513A0E144D4823D5CB500391274"><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>Affordable Housing
Act)</quote>;</text>
</paragraph><paragraph id="HC2D482EAC01844E588D52768C6D5286E"><enum>(2)</enum><text>in paragraph
(1)—</text>
<subparagraph id="HF0203AA3300B45A498B800A577635D93"><enum>(A)</enum><text>by inserting
<quote>at least 20 years following</quote> before <quote>the maturity
date</quote>;</text>
</subparagraph><subparagraph id="id359690B2372849EA954400988F8DCB3F"><enum>(B)</enum><text>by inserting
<quote>project-based</quote> before <quote>rental assistance payments
contract</quote>;</text>
</subparagraph><subparagraph id="H4271B3D479894725905131B1719000F3"><enum>(C)</enum><text>by inserting
<quote>project-based</quote> before <quote>rental housing assistance
programs</quote>; and</text>
</subparagraph><subparagraph id="H52846CACB8CA481AB72EA4BCBDA6887F"><enum>(D)</enum><text>by inserting
<quote>, or any successor project-based rental assistance program,</quote>
after <quote>1701s))</quote>;</text>
</subparagraph></paragraph><paragraph id="H30F14C475F3B49C38B73666FC7005255"><enum>(3)</enum><text>by amending
paragraph (2) to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idDAC370E532664D1AB26BB99B9BF81421" style="OLC">
<paragraph id="id3DAE27555E25409EAA9E6DDD5A4452B0"><enum>(2)</enum><text>the prepayment
may involve refinancing of the loan if such refinancing results in—</text>
<subparagraph id="idBA803F081A4E4435947D6E5EBF3843E1"><enum>(A)</enum><text>a lower interest
rate on the principal of the loan for the project and in reductions in debt
service related to such loan; or</text>
</subparagraph><subparagraph id="HC4973F5B5A664FB8BC91302E861834A"><enum>(B)</enum><text>a transaction in
which the project owner will address the physical needs of the project, but
only if, as a result of the refinancing—</text>
<clause id="id5235BB00F3B341A9BFE71A4C83E88D21"><enum>(i)</enum><text>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</text>
</clause><clause id="id878E157AFBA94153A54AE852475E0532"><enum>(ii)</enum><text>the overall cost
for providing rental assistance under section 8 for the project (if any) is not
increased, except, upon approval by the Secretary to—</text>
<subclause id="id3E4ADD733A3045BF9D7133A7318E1A1B"><enum>(I)</enum><text>mark-up-to-market
contracts pursuant to section 524(a)(3) of the Multifamily Assisted Housing
Reform and Affordability Act (42 U.S.C. 1437f note), as such section is carried
out by the Secretary for properties owned by nonprofit organizations; or</text>
</subclause><subclause id="id32C5F7A7EB49421C903FC84EEB75794E"><enum>(II)</enum><text>mark-up-to-budget
contracts pursuant to section 524(a)(4) of the Multifamily Assisted Housing
Reform and Affordability Act (42 U.S.C. 1437f note), as such section is carried
out by the Secretary for properties owned by eligible owners (as such term is
defined in section 202(k) of the Housing Act of 1959 (12U.S.C. 1701q(k));
and</text>
</subclause></clause></subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph id="id0755DBA2ED7F4B35BBE520924CC54968"><enum>(4)</enum><text>by adding at the
end the following:</text>
<quoted-block display-inline="no-display-inline" id="idD7B3FE20296945D5B2DC8948F4C7A71D" style="OLC">
<paragraph id="idCF78BB0FE44E42D9AD1833B9C9E734E5"><enum>(3)</enum><text>notwithstanding
paragraph (2)(A), the prepayment and refinancing authorized pursuant to
paragraph (2)(B) involves an increase in debt service only in the case of a
refinancing of a project assisted with a loan under such section 202 carrying
an interest rate of 6 percent or
lower.</text>
</paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></section><section id="H97797711FF7A4D45A4FD9F634D2746FF"><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="H462471556A9B42D8B0FCE80059E2DEE8"><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 (12 U.S.C.1701 note), </quote>; and</text>
</paragraph><paragraph id="HC248D197C4A7490193CC8D042665A900"><enum>(2)</enum><text>by striking
<quote>may</quote> and inserting <quote>shall</quote>.</text>
</paragraph></section><section id="H05AF77B0B88B401EA9FA27D6F54A9DB"><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="id22B5E26C23B0454C8F8D1F7A8428BB6C"><enum>(1)</enum><text>by striking
<quote><header-in-text level="subsection" style="OLC">Use of unexpended
amounts</header-in-text>.—</quote> and inserting <quote><header-in-text level="paragraph" style="OLC">Use of
proceeds</header-in-text>.—</quote>;</text>
</paragraph><paragraph id="H3BD810A57FEC442898035639D50778E4"><enum>(2)</enum><text>by amending the
matter preceding paragraph (1) to read as follows: <quote>Upon execution of the
refinancing for a project pursuant to this section, the Secretary shall ensure
that proceeds are used in a manner advantageous to tenants, or are 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, including—</quote>;</text>
</paragraph><paragraph id="HDF7D9CAEB7124D04A800F7B4F3286373"><enum>(3)</enum><text>in paragraph (1),
by striking <quote>not more than 15 percent of</quote>;</text>
</paragraph><paragraph id="H74291288A01444F195B359BE526B00F9"><enum>(4)</enum><text>in paragraph (2),
by inserting before the semicolon the following; <quote>, including reducing
the number of units by reconfiguring units that are functionally obsolete,
unmarketable, or not economically viable</quote>;</text>
</paragraph><paragraph id="HB123EFC9E9D546FEA599D3B5929B000"><enum>(5)</enum><text>in
paragraph (3), by striking <quote>or</quote> at the end;</text>
</paragraph><paragraph id="HC0F3B7A6FB884F0799D41835CB9C09B8"><enum>(6)</enum><text>in paragraph (4),
by striking <quote>according to a pro rata allocation of shared savings
resulting from the refinancing.</quote> and inserting a semicolon; and</text>
</paragraph><paragraph id="H2816BE53A8F14121903CE7B7D19B13AF"><enum>(7)</enum><text>by adding at the
end the following new paragraphs:</text>
<quoted-block id="HBDEF3C01044C49769761DC3CCAA41C7E" style="OLC">
<paragraph id="HD7D7E11934B8414F83DC279A116FEE1"><enum>(5)</enum><text>rehabilitation of
the project to ensure long-term viability;</text>
</paragraph><paragraph id="idE5648864857C4EBFAB45F8A51F9BBB1C"><enum>(6)</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="HE182873162484FFE8500F3AEFDC03F27"><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="H56F988F291CE41A9BF64F655006E6DB0"><enum>(B)</enum><text>in the case of a
project refinanced through any other source of refinancing, 15 percent of the
acceptable development cost; and</text>
</subparagraph></paragraph><paragraph id="HD1BAE36901B64E06A80075F0B7468E10"><enum>(7)</enum><text display-inline="yes-display-inline">the payment of equity, if any, to—</text>
<subparagraph id="H02AB2EC09D714985B31F964D4C62BE54"><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 project, as each is
reduced by the cost of prepaying any outstanding indebtedness on the project
and transaction costs of the sale; or</text>
</subparagraph><subparagraph id="H1FF6BAA1C66C4036AA69CFBEF51CE03"><enum>(B)</enum><text>in the case of a
refinancing without the transfer of the project, to the project owner or the
project sponsor, in an amount equal to the difference between the appraised
value of the project 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 (6)(B) and (7)(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="H0C45215FCDA346ED9EB3DDFBEC02E4EE"><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="H05C6B61F7F764C8096F9D811EC4730BE"><enum>(1)</enum><text>by striking
<quote>not more than 15 percent of</quote>; and</text>
</paragraph><paragraph id="H58D1137A24E640F8BE7326A21D475EC9"><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="HF389B35FDC8243F6A154AA61848EE2E"><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 (12 U.S.C. 1701q
note) is amended by adding at the end the following new subsections:</text>
<quoted-block id="HB28553EF637F45DE99F353802EA72AC" style="OLC">
<subsection id="HFC3E18F6FDC844C7918BA9AEFBCF1E4"><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,
the Secretary shall provide project-based rental assistance for the project
under a senior preservation rental assistance contract, as follows:</text>
<paragraph id="HF1FF690B2C644107BE5D30F2FDA240CA"><enum>(1)</enum><text>Assistance under
the contract shall be made available to the private nonprofit organization
owner—</text>
<subparagraph id="H47580DF6BB674B58B2AB4486F9451F72"><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="H3AFADAC98844492F8377E88219189B4"><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="H3548811BC1C047628D867F6B22B02757"><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 display-inline="no-display-inline" id="H69E485F822664608B5C1833061D29CDE"><enum>(f)</enum><header>Mortgage sale
demonstration</header>
<paragraph display-inline="no-display-inline" id="idFD03DB80C6E7440E884362A76B4248C5"><enum>(1)</enum><header>In
general</header><text>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 relevant 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>). For the
purpose of demonstrating the efficiency, effectiveness, quality, and timeliness
of asset management and regulatory oversight of certain portfolios of such
mortgages by State housing finance agencies, the Secretary shall carry out a
demonstration program, in not more than 5 States, to sell portfolios of such
mortgages to State housing finance agencies for a price not to exceed the
unpaid principal balances of such mortgages and otherwise in accordance with
the requirements of such section 203.</text>
</paragraph><paragraph id="HA2A1D5A9A95F4BA900EE719FF8975D50"><enum>(2)</enum><header>Limitations</header><text display-inline="yes-display-inline">In carrying out the demonstration program
required under paragraph (1), the Secretary shall—</text>
<subparagraph id="HA81470153F994DE5B4F6FF65D03DCD30"><enum>(A)</enum><text>prohibit State
housing finance agencies from giving preference to, or conditioning the
approval of, awards of subordinate debt funds, allocations of tax credits, or
tax exempt bonds based on the use of financing for the first mortgage that is
provided by such State housing finance agency;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="HF85BD7128008498780946B775CD719A1"><enum>(B)</enum><text display-inline="yes-display-inline">require such agencies to allow, in
accordance with this section, for the refinancing or prepayment of loans made
under section 202 of the Housing Act of 1959 with a loan selected by the
owners, except that any use restrictions on the property for which the loan was
made shall remain in effect for the duration provided under the original terms
of such loan; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idC04877914D6A46348ABCB311E6077BF8"><enum>(C)</enum><text>only carry out
the demonstration program in a State that has experience with operating and
maintaining a housing preservation revolving loan fund.</text>
</subparagraph></paragraph><paragraph display-inline="no-display-inline" id="id27CDAD1629874DAA9B6E77C8F405C213"><enum>(3)</enum><header>Study</header><text>The
Secretary shall conduct a study to evaluate the performance and results of the
demonstration program carried out under paragraph (1). In conducting such
study, the Secretary shall place particular emphasis on whether the asset
management functions and activities related to loans and properties held in the
portfolios sold to State housing finance agencies under such demonstration
program have been accomplished in a timely, effective, and efficient manner,
including an analysis of approvals of refinancings and preservation
transactions, rent increase requests, withdrawals from reserves or residual
receipts (where there is no contract administrator), and provider and resident
satisfaction.</text>
</paragraph><paragraph display-inline="no-display-inline" id="idFFECA4664D37472596379F54C36EFA03"><enum>(4)</enum><header>Report</header><text>Not
later than 3 years after the date of enactment of this subsection, the
Secretary shall submit a report to the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial Services of the House of
Representatives on—</text>
<subparagraph display-inline="no-display-inline" id="id1D3F4F683F4E4C4C8EF5A46A8394AD7D"><enum>(A)</enum><text>the findings of
the study required under paragraph (3); and</text>
</subparagraph><subparagraph display-inline="no-display-inline" id="id3C61B8DE6B4F432FBD558C4F22F3BEEE"><enum>(B)</enum><text>any
recommendations the Secretary may have for expanding the demonstration project
required under paragraph (1).</text>
</subparagraph></paragraph></subsection><subsection id="H1708CAE13CAD4D558E167F10BA13A08F"><enum>(g)</enum><header>Subordination or
assumption of existing debt</header><text display-inline="yes-display-inline">In lieu of prepayment under this section of
the indebtedness with respect to a project, the Secretary may approve—</text>
<paragraph id="HBA26879A8EE14800A6735E2EBEA943C2"><enum>(1)</enum><text>in connection with
new financing for the project, the subordination of the loan for the project
under section 202 of the Housing Act of 1959 (as in effect before the enactment
of the Cranston-Gonzalez National Affordable Housing Act) and the continued
subordination of any other existing subordinate debt previously approved by the
Secretary to facilitate preservation of the project as affordable housing;
or</text>
</paragraph><paragraph id="H69D64DA5707541CDA42CA79EA561D0A8"><enum>(2)</enum><text>the assumption
(which may include the subordination described in paragraph (1)) of the loan
for the project under such section 202 in connection with the transfer of the
project with such a loan to a private nonprofit organization.</text>
</paragraph></subsection><subsection id="H191268288B1C43B4A55429948ED2B6E7"><enum>(h)</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="ID4c79dea5f6564c86b69581085938bbe1"><enum>(i)</enum><header>Tenant
involvement in prepayment and refinancing</header><text>The Secretary shall not
accept an offer to prepay the loan for any project under section 202 of the
Housing Act of 1959 unless the Secretary has—</text>
<paragraph id="idF48DD20A8DBD4176B434D8BBF1734F97"><enum>(1)</enum><text>determined that
the owner of the project has notified the tenants of the owner’s request for
approval of a prepayment;</text>
</paragraph><paragraph id="id6A65D95134BE40698992B040ECD6160C"><enum>(2)</enum><text>determined that
the owner of the project has provided the tenants with an opportunity to
comment on the owner’s request for approval of a prepayment, including a
description of any anticipated rehabilitation or other use of the proceeds from
the transaction, and its impacts on project rents, tenant contributions, or the
affordability restrictions for the project; and</text>
</paragraph><paragraph id="id17DDBBE964AE4E04939966CA4B1CC21B"><enum>(3)</enum><text>taken such
comments into consideration.</text>
</paragraph></subsection><subsection id="HA8F4D724129C4EC28F00262E8ED76022"><enum>(j)</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><enum>III</enum><header>Assisted living
facilities</header>
<section id="H635FBBF0FB8F46E185E88F3D28026939"><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="H000C0218E1544E1E00C5AE37DFC55A3" style="OLC">
<paragraph id="H1F5D4A1E62D54763AD5025AD2B7BC557"><enum>(1)</enum><text display-inline="yes-display-inline">the term <term>assisted living
facility</term> means a facility that—</text>
<subparagraph id="H54A2BA10B7DB4A06AABFA8F51EA9A99E"><enum>(A)</enum><text>is owned by a
private nonprofit organization; and</text>
</subparagraph><subparagraph id="HB847381A079E4BF38812F6E1BF5C9FC"><enum>(B)</enum><clause commented="no" display-inline="yes-display-inline" id="HC2C035DD1AE74F94BA636CE212385400"><enum>(i)</enum><text>is licensed and
regulated by a 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="HC18AE1AD13D74D048269D0A5FC394CD0" indent="up1"><enum>(ii)</enum><subclause commented="no" display-inline="yes-display-inline" id="H687B5BCFC7894C308CA0D1AC5F9E82F3"><enum>(I)</enum><text>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, as described in
section 232(b)(6)(B) of the National Housing Act (12 U.S.C. 1715w(b)(6)(B));
and</text>
</subclause><subclause id="HFF7D09D9F5D9411E90394327405DD5B5" 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="HA90B021AA94F4AA786E351D124E1E8FE"><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 that is reasonable given the services and amenities
provided and as the Secretary deems appropriate.</quote>.</text>
</section><enum>IV</enum><header>Facilitating
affordable housing preservation transactions</header>
<section id="HCF35715F05C6496B9DD1E6594558407B"><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><enum>V</enum><header>National senior
housing clearinghouse</header>
<section id="id262581E1A2B74646B13F39344DD35611"><enum>501.</enum><header>National
senior housing clearinghouse</header>
<subsection id="id826EF8653A7B4E9281941401E5613899"><enum>(a)</enum><header>Establishment</header><text>Not
later than 180 days after the date of enactment of this Act, the Secretary of
Housing and Urban Development shall establish and operate a clearinghouse to
serve as a national repository to receive, collect, process, assemble, and
disseminate information regarding the availability and quality of multifamily
developments for elderly tenants, including—</text>
<paragraph id="id540A6E9E1A9642B7BD59C0C2F9452D15"><enum>(1)</enum><text>the availability
of—</text>
<subparagraph id="id97EF7115C7A34B47B101606968009AEC"><enum>(A)</enum><text>supportive
housing for the elderly pursuant to section 202 of the Housing Act of 1959 (12
U.S.C. 1701q), including any housing unit assisted with a project rental
assistance contract under such section;</text>
</subparagraph><subparagraph id="idF156BA8BE74B46B087BBA08633634B28"><enum>(B)</enum><text>properties and
units eligible for assistance under section 8 of the United States Housing Act
of 1937 (42 U.S.C. 1437f);</text>
</subparagraph><subparagraph id="idFB7F0DC1A1B943EB9602E47790165F37"><enum>(C)</enum><text>properties
eligible for the low-income housing tax credit under section 42 of the Internal
Revenue Code of 1986;</text>
</subparagraph><subparagraph id="idC2B732312957425DA2918CB079BB12A3"><enum>(D)</enum><text>units in assisted
living facilities insured pursuant to section 221(d)(4) of the National Housing
Act (12 U.S.C. 1715l(d)(4));</text>
</subparagraph><subparagraph id="idDF014B4736EA47BC835CE20E176CDA6D"><enum>(E)</enum><text>units in any
multifamily project that has been converted into an assisted living facility
for elderly persons pursuant to section 202b of the Housing Act of 1959 (12
U.S.C. 1701q–2); and</text>
</subparagraph><subparagraph id="id915D392A566342E5895688A6FF28FEFA"><enum>(F)</enum><text>any other
federally assisted or subsidized housing for the elderly;</text>
</subparagraph></paragraph><paragraph id="ID2d61a9b596af44ebbc1a13cc126e0c94"><enum>(2)</enum><text>the number of
available units in each property, project, or facility described in paragraph
(1);</text>
</paragraph><paragraph id="id7C8DD8D11B094CF8B9391572C92BC169"><enum>(3)</enum><text>the number of
bedrooms in each available unit in each property, project, or facility
described in paragraph (1);</text>
</paragraph><paragraph id="id5CCD3D32337048379005A79E9CB61E8D"><enum>(4)</enum><text>the estimated
cost to a potential tenant to rent or reside in each available unit in each
property, project, or facility described in paragraph (1);</text>
</paragraph><paragraph id="ID570e10b6cc144a5182f8e4f4fd01d644"><enum>(5)</enum><text>the presence of a
waiting list for entry into any available unit in each property, project, or
facility described in paragraph (1);</text>
</paragraph><paragraph id="ID435d99b2cdaa42119b3248fdf3b28115"><enum>(6)</enum><text>the number of
persons on the waiting list for entry into any available unit in each property,
project, or facility described in paragraph (1);</text>
</paragraph><paragraph id="ID8b6c9789bef64a28bfc9cb97b6403792"><enum>(7)</enum><text>the estimated
time an individual can expect to be on the waiting list for entry into any
available unit in each property, project, or facility described in paragraph
(1);</text>
</paragraph><paragraph id="ID41bfdefe12e04eb5aacaa0a249fe09f3"><enum>(8)</enum><text>the amenities
available in each available unit in each property, project, or facility
described in paragraph (1), including—</text>
<subparagraph id="IDfc48fbd4492f45a4a1c76a80e5991904"><enum>(A)</enum><text>the services
provided by such property, project, or facility;</text>
</subparagraph><subparagraph id="ID8950cc7c4d714a83ba4300c77b9a7c1f"><enum>(B)</enum><text>the size and
availability of common space within each property, project, or facility;</text>
</subparagraph><subparagraph id="IDe5a4107b66dd424dbf197371bc4de1fd"><enum>(C)</enum><text>the availability
of organized activities for individuals residing in such property, project, or
facility; and</text>
</subparagraph><subparagraph id="IDcc0e75575668453b97c6700791484ae0"><enum>(D)</enum><text>any other
additional amenities available to individuals residing in such property,
project, or facility;</text>
</subparagraph></paragraph><paragraph id="ID4dc570adde52428b97a3245a19d6c0f3"><enum>(9)</enum><text>the level of care
(personal, physical, or nursing) available to individuals residing in any
property, project, or facility described in paragraph (1);</text>
</paragraph><paragraph id="IDb06ed0da6fd64d43bc2b17873e3f8c81"><enum>(10)</enum><text>whether there is
a service coordinator in any property, project, or facility described in
paragraph (1); and</text>
</paragraph><paragraph id="ID733f897fadd04d249014308d2b96ab5b"><enum>(11)</enum><text>any other
criteria determined appropriate by the Secretary.</text>
</paragraph></subsection><subsection id="id79F7ED18D7C54BBCA41393475D409D6E"><enum>(b)</enum><header>Collection and
updating of information</header>
<paragraph id="id91EE33FD7DB2441A810B9112E7717122"><enum>(1)</enum><header>Initial
Colleection</header><text>Not later than 90 days after the date of enactment of
this Act, the Secretary of Housing and Urban Development shall conduct an
annual survey requesting information from each owner of a property, project, or
facility described in subsection (a)(1) regarding the provisions described in
paragraphs (2) through (11) of such subsection.</text>
</paragraph><paragraph id="id3C07BFF9366C489A9D34BE96E3A7F28A"><enum>(2)</enum><header>Response
time</header><text>Not later than 30 days after receiving the request described
under paragraph (1), the owner of each such property, project, or facility
shall submit such information to the Secretary of Housing and Urban
Development.</text>
</paragraph><paragraph id="idB5E65EFDF2FA43C691D8C8142CF2E328"><enum>(3)</enum><header>Public
availability</header><text>Not later than 60 days after the Secretary of
Housing and Urban Development receives the submission of any information
required under paragraph (2), the Secretary shall make such information
publicly available through the clearinghouse.</text>
</paragraph><paragraph id="idAD6F7CF71CB64A54893BA6E36CC3C720"><enum>(4)</enum><header>Updates</header><text>The
Secretary of Housing and Urban Development shall conduct an annual survey of
each owner of a property, project, or facility described in subsection (a)(1)
for the purpose of updating or modifying information provided in the initial
collection of information under paragraph (1). Not later than 30 days after
receiving such a request, the owner of each such property, project, or facility
shall submit such updates or modifications to the Secretary. Not later than 60
days after receiving such updates or modifications, the Secretary shall inform
the clearinghouse of such updated or modified information.</text>
</paragraph></subsection><subsection id="id2370C57B33204FD490F353D7C6A0AB78"><enum>(c)</enum><header>Functions</header><text>The
clearinghouse established under subsection (a) shall—</text>
<paragraph id="ID7aeba475c1e34d28b2352977608a94ff"><enum>(1)</enum><text>respond to
inquiries from State and local governments, other organizations, and
individuals requesting information regarding the availability of housing in
multifamily developments for elderly tenants;</text>
</paragraph><paragraph id="IDe4feffd5b56f40558b219459fdbc6c5d"><enum>(2)</enum><text>make such
information publicly available via the Internet website of the Department of
Housing and Urban Development, which shall include—</text>
<subparagraph id="id6B5460EEFC31413F9491FDF006618A67"><enum>(A)</enum><text>access via
electronic mail; and</text>
</subparagraph><subparagraph id="id66DF0D5300694F7BBC6DEEF9AD810CB7"><enum>(B)</enum><text>an easily
searchable, sortable, downloadable, and accessible index that itemizes the
availability of housing in multifamily developments for elderly tenants by
State, county, and zip code;</text>
</subparagraph></paragraph><paragraph id="ID13a1d7ca3fdd45009cdb58ae86fc76d6"><enum>(3)</enum><text>establish a
toll-free number to provide the public with specific information regarding the
availability of housing in multifamily developments for elderly tenants;
and</text>
</paragraph><paragraph id="IDaa8dde352a594f63af517c067b875010"><enum>(4)</enum><text>perform any other
duty that the Secretary determines necessary to achieve the purposes of this
section.</text>
</paragraph></subsection><subsection id="id4E884630BDDB4E43896BF8521531542B"><enum>(d)</enum><header>Authorization
of appropriations</header><text>There are authorized to be appropriated such
sums as necessary to carry out this section.</text>
</subsection></section>