[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[S. 3593 Introduced in Senate (IS)]







110th CONGRESS
  2d Session
                                S. 3593

   To amend section 811 of the Cranston-Gonzalez National Affordable 
 Housing Act to improve the program under such section for supportive 
                 housing for persons with disabilities.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

           September 25 (legislative day, September 17), 2008

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

_______________________________________________________________________

                                 A BILL


 
   To amend section 811 of the Cranston-Gonzalez National Affordable 
 Housing Act to improve the program under such section for supportive 
                 housing for persons with disabilities.

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

SECTION 1. SHORT TITLE; REFERENCES.

    (a) Short Title.--This Act may be cited as the ``Frank Melville 
Supportive Housing Investment Act of 2008''.
    (b) References.--Except as otherwise expressly provided, wherever 
in this Act an amendment or repeal is expressed in terms of an 
amendment to, or repeal of, section 811 or any other provision of 
section 811, the reference shall be considered to be made to section 
811 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
8013).

SEC. 2. TENANT-BASED RENTAL ASSISTANCE THROUGH CERTIFICATE FUND.

    (a) Termination of Mainstream Tenant-Based Rental Assistance 
Program.--Section 811 is amended--
            (1) in subsection (b)--
                    (A) by striking the subsection designation and all 
                that follows through the end of subparagraph (B) of 
                paragraph (2) and inserting the following:
    ``(b) Authority To Provide Assistance.--The Secretary is authorized 
to provide assistance to private nonprofit organizations to expand the 
supply of supportive housing for persons with disabilities, which shall 
be provided as--
            ``(1) capital advances in accordance with subsection 
        (d)(1), and
            ``(2) contracts for project rental assistance in accordance 
        with subsection (d)(2).''; and
                    (B) by striking ``assistance under this paragraph'' 
                and inserting ``Assistance under this subsection'';
            (2) in subsection (d), by striking paragraph (4); and
            (3) in subsection (l), by striking paragraph (1).
    (b) Renewal Through Section 8.--Section 811 is amended by adding at 
the end the following new subsection:
    ``(p) Authorization of Appropriations for Section 8 Assistance.--
            ``(1) In general.--There is authorized to be appropriated 
        for tenant-based rental assistance under section 8(o) of the 
        United States Housing Act of 1937 (42 U.S.C. 1437f(o)) for 
        persons with disabilities in fiscal year 2009 the amount 
        necessary to provide a number of incremental vouchers under 
        such section that is equal to the number of vouchers provided 
        in fiscal year 2008 under the tenant-based rental assistance 
        program under subsection (d)(4) of this section (as in effect 
        before the date of the enactment of the Frank Melville 
        Supportive Housing Investment Act of 2008).
            ``(2) Requirements upon turnover.--The Secretary shall 
        develop and issue, to public housing agencies that receive 
        voucher assistance made available under this subsection and to 
        public housing agencies that received voucher assistance under 
        section 8(o) of the United States Housing Act of 1937 (42 
        U.S.C. 1437f(o)) for non-elderly disabled families pursuant to 
        appropriation Acts for fiscal years 1997 through 2002 or any 
        other subsequent appropriations for incremental vouchers for 
        non-elderly disabled families, guidance to ensure that, to the 
        maximum extent possible, such vouchers continue to be provided 
        upon turnover to qualified persons with disabilities or to 
        qualified non-elderly disabled families, respectively.''.

SEC. 3. MODERNIZED CAPITAL ADVANCE PROGRAM.

    (a) Project Rental Assistance Contracts.--Section 811 is amended--
            (1) in subsection (d)(2)--
                    (A) by inserting ``(A) Initial project rental 
                assistance contract.--'' after ``Project rental 
                assistance.--''
                    (B) in the first sentence, by inserting after 
                ``shall'' the following: ``comply with subsection 
                (e)(2) and shall'';
                    (C) by striking ``annual contract amount'' each 
                place such term appears and inserting ``amount provided 
                under the contract for each year covered by the 
                contract''; and
                    (D) by adding at the end the following new 
                subparagraph:
            ``(B) Renewal of and increases in contract amounts.--
                    ``(i) Expiration of contract term.--Upon the 
                expiration of each contract term, subject to the 
                availability of amounts made available in appropriation 
                Acts, the Secretary shall adjust the annual contract 
                amount to provide for reasonable project costs, and any 
                increases, including adequate reserves 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.
                    ``(ii) Emergency situations.--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.''.
            (2) in subsection (e)(2)--
                    (A) in the first sentence, by inserting before the 
                period at the end the following: ``, except that, in 
                the case of the sponsor of a project assisted with any 
                low-income housing tax credit pursuant to section 42 of 
                the Internal Revenue Code of 1986 or with any tax-
                exempt housing bonds, the contract shall have an 
                initial term of not be less than 360 months and shall 
                provide funding for a term of 60 months''; and
                    (B) by striking ``extend any expiring contract'' 
                and insert ``upon expiration of a contract (or any 
                renewed contract), renew such contract''.
    (b) Program Requirements.--Section 811 is amended--
            (1) in subsection (e)--
                    (A) by striking the subsection heading and 
                inserting the following: ``Program Requirements'';
                    (B) by striking paragraph (1) and inserting the 
                following new paragraph:
            ``(1) Use restrictions.--
                    ``(A) Term.--Any project for which a capital 
                advance is provided under subsection (d)(1) shall be 
                operated for not less than 40 years as supportive 
                housing for persons with disabilities, in accordance 
                with the application for the project approved by the 
                Secretary and shall, during such period, be made 
                available for occupancy only by very low-income persons 
                with disabilities.
                    ``(B) Conversion.--If the owner of a project 
                requests the use of the project for the direct benefit 
                of very low-income persons with disabilities and, 
                pursuant to such request the Secretary determines that 
                a project is no longer needed for use as supportive 
                housing for persons with disabilities, the Secretary 
                may approve the request and authorize the owner to 
                convert the project to such use.''; and
                    (C) by adding at the end the following new 
                paragraphs:
            ``(3) Limitation on use of funds.--No assistance received 
        under this section (or any State or local government funds used 
        to supplement such assistance) may be used to replace other 
        State or local funds previously used, or designated for use, to 
        assist persons with disabilities.
            ``(4) Multifamily projects.--
                    ``(A) Limitation.--Except as provided in 
                subparagraph (B), of the total number of dwelling units 
                in any multifamily housing project (including any 
                condominium or cooperative housing project) containing 
                any unit for which assistance is provided from a 
                capital grant under subsection (d)(1) made after the 
                date of the enactment of the Frank Melville Supportive 
                Housing Investment Act of 2008, the aggregate number 
                that are used for persons with disabilities, including 
                supportive housing for persons with disabilities, or to 
                which any occupancy preference for persons with 
                disabilities applies, may not exceed 25 percent of such 
                total.
                    ``(B) Exception.--Subparagraph (A) shall not apply 
                in the case of any project that is a group home or 
                independent living facility.''; and
            (2) in subsection (l), by striking paragraph (4).
    (c) Delegated Processing.--Subsection (g) of section 811 (42 U.S.C. 
8013(g)) is amended--
            (1) by striking ``Selection Criteria.--'' and inserting 
        ``Selection Criteria and Processing.--(1) Selection criteria.--
        '';
            (2) by redesignating paragraphs (1), (2), (3), (4), (5), 
        (6), and (7) as subparagraphs (A), (B), (C), (D), (E), (G), and 
        (H), respectively; and
            (3) by adding at the end the following new paragraph:
    ``(2) Delegated Processing.--
            ``(A) In issuing a capital advance under subsection (d)(1) 
        for any multifamily project (but not including any project that 
        is a group home or independent living facility) for which 
        financing for the purposes described in the last sentence of 
        subsection (b) is provided by a combination of the capital 
        advance 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--
                    ``(i) is in geographic proximity to the property;
                    ``(ii) has demonstrated experience in and capacity 
                for underwriting multifamily housing loans that provide 
                housing and supportive services;
                    ``(iii) may or may not be providing low-income 
                housing tax credits in combination with the capital 
                advance under this section; and
                    ``(iv) agrees to issue a firm commitment within 12 
                months of delegation.
            ``(B) 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.
            ``(C) 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.
            ``(D) 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.''.
    (d) Leveraging Other Resources.--Paragraph (1) of section 811(g) 
(as so designated by subsection (c)(1) of this section) is amended by 
inserting after subparagraph (E) (as so redesignated by subsection 
(c)(2) of this section) the following new subparagraph:
                    ``(F) the extent to which the per-unit cost of 
                units to be assisted under this section will be 
                supplemented with resources from other public and 
                private sources;''.
    (e) Tenant Protections and Eligibility for Occupancy.--Section 811 
is amended by striking subsection (i) and inserting the following new 
subsection:
    ``(i) Admission and Occupancy.--
            ``(1) Tenant selection.--
                    ``(A) Procedures.--An owner shall adopt written 
                tenant selection procedures that are satisfactory to 
                the Secretary as (i) consistent with the purpose of 
                improving housing opportunities for very low-income 
                persons with disabilities; and (ii) reasonably related 
                to program eligibility and an applicant's ability to 
                perform the obligations of the lease. Owners shall 
                promptly notify in writing any rejected applicant of 
                the grounds for any rejection.
                    ``(B) Requirement for occupancy.--Occupancy in 
                dwelling units provided assistance under this section 
                shall be available only to persons with disabilities 
                and households that include at least one person with a 
                disability.
                    ``(C) Availability.--Except only as provided in 
                subparagraph (D), occupancy in dwelling units in 
                housing provided with assistance under this section 
                shall be available to all persons with disabilities 
                eligible for such occupancy without regard to the 
                particular disability involved.
                    ``(D) Limitation on occupancy.--Notwithstanding any 
                other provision of law, the owner of housing developed 
                under this section may, with the approval of the 
                Secretary, limit occupancy within the housing to 
                persons with disabilities who can benefit from the 
                supportive services offered in connection with the 
                housing.
            ``(2) Tenant protections.--
                    ``(A) Lease.--The lease between a tenant and an 
                owner of housing assisted under this section shall be 
                for not less than one year, and shall contain such 
                terms and conditions as the Secretary shall determine 
                to be appropriate.
                    ``(B) Termination of tenancy.--An owner may not 
                terminate the tenancy or refuse to renew the lease of a 
                tenant of a rental dwelling unit assisted under this 
                section except--
                            ``(i) for serious or repeated violation of 
                        the terms and conditions of the lease, for 
                        violation of applicable Federal, State, or 
                        local law, or for other good cause; and
                            ``(ii) by providing the tenant, not less 
                        than 30 days before such termination or refusal 
                        to renew, with written notice specifying the 
                        grounds for such action.
                    ``(C) Voluntary participation in services.--A 
                supportive service plan for housing assisted under this 
                section shall permit each resident to take 
                responsibility for choosing and acquiring their own 
                services, to receive any supportive services made 
                available directly or indirectly by the owner of such 
                housing, or to not receive any supportive services.''.
    (f) Development Cost Limitations.--Subsection (h) of section 811 is 
amended--
            (1) in paragraph (1)--
                    (A) by striking the paragraph heading and inserting 
                ``Group homes'';
                    (B) in the first sentence, by striking ``various 
                types and sizes'' and inserting ``group homes'';
                    (C) by striking subparagraph (E); and
                    (D) by redesignating subparagraphs (F) and (G) as 
                subparagraphs (E) and (F), respectively;
            (2) in paragraph (3), by inserting ``established pursuant 
        to paragraph (1)'' after ``cost limitation''; and
            (3) by adding at the end the following new paragraph:
            ``(6) Applicability of home program cost limitations.--
                    ``(A) In general.--The provisions of section 212(e) 
                of the Cranston-Gonzalez National Affordable Housing 
                Act (42 U.S.C. 12742(e)) and the cost limits 
                established by the Secretary pursuant to such section 
                with respect to the amount of funds under subtitle A of 
                title II of such Act that may be invested on a per unit 
                basis, shall apply to supportive housing assisted with 
                a capital advance under subsection (d)(1) and the 
                amount of funds under such subsection that may be 
                invested on a per unit basis.
                    ``(B) Waivers.--The Secretary shall provide for 
                waiver of the cost limits applicable pursuant to 
                subparagraph (A)--
                            ``(i) in the cases in which the cost limits 
                        established pursuant to section 212(e) of the 
                        Cranston-Gonzalez National Affordable Housing 
                        Act may be waived; and
                            ``(ii) to provide for--
                                    ``(I) the cost of special design 
                                features to make the housing accessible 
                                to persons with disabilities;
                                    ``(II) the cost of special design 
                                features necessary to make individual 
                                dwelling units meet the special needs 
                                of persons with disabilities; and
                                    ``(III) the cost of providing the 
                                housing in a location that is 
                                accessible to public transportation and 
                                community organizations that provide 
                                supportive services to persons with 
                                disabilities.''.
    (g) Repeal of Authority To Waive Size Limitations.--Paragraph (1) 
of section 811(k) is amended--
            (1) in paragraph (1), by striking the second sentence; and
            (2) in paragraph (4), by striking ``(or such higher number 
        of persons'' and all that follows through ``subsection 
        (h)(6))''.
    (h) Minimum Allocation for Multifamily Projects.--Subsection (l) of 
section 811, as amended by the preceding provisions of this Act, is 
further amended by inserting before paragraph (2) the following new 
paragraph:
            ``(1) Minimum allocation for multifamily projects.--The 
        Secretary shall establish a minimum percentage of the amount 
        made available for each fiscal year for capital advances under 
        subsection (d)(1) that shall be used for multifamily projects 
        subject to subsection (e)(4).''.

SEC. 4. PROJECT RENTAL ASSISTANCE COMPETITIVE DEMONSTRATION PROGRAM.

    Section 811, as amended by the preceding provisions of this Act, is 
further amended--
            (1) by redesignating subsections (k) through (n) as 
        subsections (l) through (o), respectively; and
            (2) by inserting after subsection (j) the following new 
        subsection:
    ``(k) Project Rental Assistance-Only Competitive Demonstration 
Program.--
            ``(1) Authority.--The Secretary shall carry out a 
        demonstration program under this subsection to expand the 
        supply of supportive housing for non-elderly adults with 
        disabilities, under which the Secretary shall make funds 
        available for project rental assistance pursuant to paragraph 
        (2) for eligible projects under paragraph (3). The Secretary 
        shall provide for State housing finance agencies and other 
        appropriate entities to apply to the Secretary for such project 
        rental assistance funds, which shall be made available by such 
        agencies and entities for dwelling units in eligible projects 
        based upon criteria established by the Secretary for the 
        demonstration program under this subsection. The Secretary may 
        not require any State housing finance agency or other entity 
        applying for project rental assistance funds under the 
        demonstration program to identify in such application the 
        eligible projects for which such funds will be used, and shall 
        allow such agencies and applicants to subsequently identify 
        such eligible projects pursuant to the making of commitments 
        described in paragraph (3)(B).
            ``(2) Project rental assistance.--
                    ``(A) Contract terms.--Project rental assistance 
                under the demonstration program under this subsection 
                shall be provided--
                            ``(i) in accordance with subsection (d)(2);
                            ``(ii) under a contract having an initial 
                        term of not less than 180 months that provides 
                        funding for a term 60 months, which funding 
                        shall be renewed upon expiration, subject to 
                        the availability of sufficient amounts in 
                        appropriation Acts.
                    ``(B) Limitation on units assisted.--Of the total 
                number of dwelling units in any multifamily housing 
                project containing any unit for which project rental 
                assistance under the demonstration program under this 
                subsection is provided, the aggregate number that are 
                provided such project rental assistance, that are used 
                for supportive housing for persons with disabilities, 
                or to which any occupancy preference for persons with 
                disabilities applies, may not exceed 25 percent of such 
                total.
                    ``(C) Prohibition of capital advances.--The 
                Secretary may not provide a capital advance under 
                subsection (d)(1) for any project for which assistance 
                is provided under the demonstration program.
                    ``(D) Eligible population.--Project rental 
                assistance under the demonstration program under this 
                subsection may be provided only for dwelling units for 
                extremely low-income persons with disabilities and 
                extremely low-income households that include at least 
                one person with a disability.
            ``(3) Eligible projects.--An eligible project under this 
        paragraph is a new or existing multifamily housing project for 
        which--
                    ``(A) the development costs are paid with resources 
                from other public or private sources; and
                    ``(B) a commitment has been made--
                            ``(i) by the applicable State agency 
                        responsible for allocation of low-income 
                        housing tax credits under section 42 of the 
                        Internal Revenue Code of 1986, for an 
                        allocation of such credits;
                            ``(ii) by the applicable participating 
                        jurisdiction that receives assistance under the 
                        HOME Investment Partnership Act, for assistance 
                        from such jurisdiction; or
                            ``(iii) by any Federal agency or any State 
                        or local government, for funding for the 
                        project from funds from any other sources.
            ``(4) State agency involvement.--Assistance under the 
        demonstration may be provided only for projects for which the 
        applicable State agency responsible for health and human 
        services programs, and the applicable State agency designated 
        to administer or supervise the administration of the State plan 
        for medical assistance under title XIX of the Social Security 
        Act, have entered into such agreements as the Secretary 
        considers appropriate--
                    ``(A) to identify the target populations to be 
                served by the project;
                    ``(B) to set forth methods for outreach and 
                referral; and
                    ``(C) to make available appropriate services for 
                tenants of the project.
            ``(5) Use requirements.--In the case of any project for 
        which project rental assistance is provided under the 
        demonstration program under this subsection, the dwelling units 
        assisted pursuant to paragraph (2) shall be operated for not 
        less than 30 years as supportive housing for persons with 
        disabilities, in accordance with the application for the 
        project approved by the Secretary, and such dwelling units 
        shall, during such period, be made available for occupancy only 
        by persons and households described in paragraph (2)(D).
            ``(6) Report.--Upon the expiration of the 5-year period 
        beginning on the date of the enactment of the Frank Melville 
        Supportive Housing Investment Act of 2008, the Secretary shall 
        submit to the Congress a report describing the demonstration 
        program under this subsection, analyzing the effectiveness of 
        the program, including the effectiveness of the program 
        compared to the program for capital advances in accordance with 
        subsection (d)(1) (as in effect pursuant to the amendments made 
        by such Act), and making recommendations regarding future 
        models for assistance under this section based upon the 
        experiences under the program.''.

SEC. 5. TECHNICAL CORRECTIONS.

    Section 811 is amended--
            (1) in subsection (a)--
                    (A) in paragraph (1), by striking ``and'' at the 
                end;
                    (B) in paragraph (2)--
                            (i) by striking ``provides'' and inserting 
                        ``makes available''; and
                            (ii) by striking the period at the end and 
                        inserting ``; and''; and
                    (C) by adding at the end the following new 
                paragraph:
            ``(3) promotes and facilitates community integration for 
        people with significant and long-term disabilities.'';
            (2) in subsection (c)--
                    (A) in paragraph (1), by striking ``special'' and 
                inserting ``housing and community-based services''; and
                    (B) in paragraph (2)--
                            (i) by striking subparagraph (A) and 
                        inserting the following:
                    ``(A) make available voluntary supportive services 
                that address the individual needs of persons with 
                disabilities occupying such housing;''; and
                            (ii) in subparagraph (B), by striking the 
                        comma and inserting a semicolon;
            (3) in subsection (d)(1), by striking ``provided under'' 
        and all that follows through ``shall bear'' and inserting 
        ``provided pursuant to subsection (b)(1) shall bear'';
            (4) in subsection (f)--
                    (A) in paragraph (3)--
                            (i) in subparagraph (B), by striking 
                        ``receive'' and inserting ``be offered'';
                            (ii) by striking subparagraph (C) and 
                        inserting the following:
                    ``(C) evidence of the applicant's experience in--
                            ``(i) providing such supportive services; 
                        or
                            ``(ii) creating and managing structured 
                        partnerships with service providers for the 
                        delivery of appropriate community-based 
                        services;'';
                            (iii) in subparagraph (D), by striking 
                        ``such persons'' and all that follows through 
                        ``provision of such services'' and inserting 
                        ``tenants''; and
                            (iv) in subparagraph (E), by inserting 
                        ``other Federal, and'' before ``State''; and
                    (B) in paragraph (4), by striking ``special'' and 
                inserting ``housing and community-based services'';
            (5) in subsection (g), in paragraph (1) (as so redesignated 
        by section 3(c)(1) of this Act)--
                    (A) in subparagraph (D) (as so redesignated by 
                section 3(c)(2) of this Act), by striking ``the 
                necessary supportive services will be provided'' and 
                inserting ``appropriate supportive services will be 
                made available''; and
                    (B) by striking subparagraph (E) (as so 
                redesignated by section 3(c)(2) of this Act) and 
                inserting the following:
            ``(E) the extent to which the location and design of the 
        proposed project will facilitate the provision of community-
        based supportive services and address other basic needs of 
        persons with disabilities, including access to appropriate and 
        accessible transportation, access to community services 
        agencies, public facilities, and shopping;'';
            (6) in subsection (j)--
                    (A) by striking paragraph (4); and
                    (B) by redesignating paragraphs (5), (6), and (7) 
                as paragraphs (4), (5), and (6), respectively;
            (7) in subsection (l) (as so redesignated by section 4(1) 
        of this Act)--
                    (A) in paragraph (1), by inserting before the 
                period at the end of the first sentence the following: 
                ``, which provides a separate bedroom for each tenant 
                of the residence'';
                    (B) by striking paragraph (2) and inserting the 
                following:
            ``(2)(A) The term `person with disabilities' means a person 
        who is 18 years of age or older and less than 62 years of age, 
        who--
                    ``(i) has a disability as defined in section 223 of 
                the Social Security Act,
                    ``(ii) is determined, pursuant to regulations 
                issued by the Secretary, to have a physical, mental, or 
                emotional impairment which--
                            ``(I) is expected to be of long-continued 
                        and indefinite duration;
                            ``(II) substantially impedes his or her 
                        ability to live independently; and
                            ``(III) is of such a nature that such 
                        ability could be improved by more suitable 
                        housing conditions; or
                    ``(iii) has a developmental disability as defined 
                in section 102 of the Developmental Disabilities 
                Assistance and Bill of Rights Act of 2000.
            ``(B) Such term shall not exclude persons who have the 
        disease of acquired immunodeficiency syndrome or any conditions 
        arising from the etiologic agent for acquired immunodeficiency 
        syndrome. Notwithstanding any other provision of law, no 
        individual shall be considered a person with disabilities, for 
        purposes of eligibility for low-income housing under this 
        title, solely on the basis of any drug or alcohol dependence. 
        The Secretary shall consult with other appropriate Federal 
        agencies to implement the preceding sentence.
            ``(C) The Secretary shall prescribe such regulations as may 
        be necessary to prevent abuses in determining, under the 
        definitions contained in this paragraph, the eligibility of 
        families and persons for admission to and occupancy of housing 
        assisted under this section. Notwithstanding the preceding 
        provisions of this paragraph, the term `person with 
        disabilities' includes two or more persons with disabilities 
        living together, one or more such persons living with another 
        person who is determined (under regulations prescribed by the 
        Secretary) to be important to their care or well-being, and the 
        surviving member or members of any household described in 
        subparagraph (A) who were living, in a unit assisted under this 
        section, with the deceased member of the household at the time 
        of his or her death.'';
                    (C) by striking paragraph (3) and inserting the 
                following new paragraph:
            ``(3) The term `supportive housing for persons with 
        disabilities' means dwelling units that--
                    ``(A) are designed to meet the permanent housing 
                needs of very low-income persons with disabilities; and
                    ``(B) are located in housing that make available 
                supportive services that address the individual health, 
                mental health, or other needs of such persons.'';
                    (D) in paragraph (5), by striking ``a project 
                for''; and
                    (E) in paragraph (6)--
                            (i) by inserting after and below 
                        subparagraph (D) the matter to be inserted by 
                        the amendment made by section 841 of the 
                        American Homeownership and Economic Opportunity 
                        Act of 2000 (Public Law 106-569; 114 Stat. 
                        3022); and
                            (ii) in the matter inserted by the 
                        amendment made by subparagraph (A) of this 
                        paragraph, by striking ``wholly owned and''; 
                        and
            (8) in subsection (m) (as so redesignated by section 4(1) 
        of this Act)--
                    (A) in paragraph (2), by striking ``subsection 
                (c)(1)'' and inserting ``subsection (d)(1)''; and
                    (B) in paragraph (3), by striking ``subsection 
                (c)(2)'' and inserting ``subsection (d)(2)''.

SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

    Subsection (n) of section 811 (as so redesignated by section 4(1) 
of this Act) is amended to read as follows:
    ``(n) Authorization of Appropriations.--There is authorized to be 
appropriated for each of fiscal years 2008 through 2012 the following 
amounts:
            ``(1) Capital advance/prac program.--For providing 
        assistance pursuant to subsection (b), such sums as may be 
        necessary.
            ``(2) Demonstration program.--For carrying out the 
        demonstration program under subsection (k), such sums as may be 
        necessary to provide 2,500 incremental dwelling units under 
        such program in each of fiscal years 2008 and 2009 and 5,000 
        incremental dwelling units under such program in each of fiscal 
        years 2010, 2011, and 2012.''.

SEC. 7. NEW REGULATIONS AND PROGRAM GUIDANCE.

    Not later than the expiration of the 180-day period beginning on 
the date of the enactment of this Act, the Secretary of Housing and 
Urban Development shall issue new regulations and guidance for the 
program under section 811 of the Cranston-Gonzalez National Affordable 
Housing Act for supportive housing for persons with disabilities to 
carry out such program in accordance with the amendments made by this 
Act.

SEC. 8. GAO STUDY.

    The Comptroller General of the United States shall conduct a study 
of the supportive housing for persons with disabilities program under 
section 811 of the Cranston-Gonzalez National Affordable Housing Act 
(42 U.S.C. 8013) to determine the adequacy and effectiveness of such 
program in assisting households of persons with disabilities. Such 
study shall determine--
            (1) the total number of households assisted under such 
        program;
            (2) the extent to which households assisted under other 
        programs of the Department of Housing and Urban Development 
        that provide rental assistance or rental housing would be 
        eligible to receive assistance under such section 811 program; 
        and
            (3) the extent to which households described in paragraph 
        (2) who are eligible for, but not receiving, assistance under 
        such section 811 program are receiving supportive services 
        from, or assisted by, the Department of Housing and Urban 
        Development other than through the section 811 program 
        (including under the Resident Opportunity and Self-Sufficiency 
        program) or from other sources.
Upon the completion of the study required under this section, the 
Comptroller General shall submit a report to the Congress setting forth 
the findings and conclusions of the study.
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