1.Short title and table of contents
(a)This Act may be cited as the
Section 202 Supportive Housing for the
Elderly Act of 2010
.
(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. Selection
criteria.
Sec. 102. Development cost
limitations.
Sec. 103. Owner
deposits.
Sec. 104. Definition of private
nonprofit organization.
Sec. 105. Nonmetropolitan
allocation.
TITLE II—Refinancing
Sec. 201. Approval of
prepayment of debt.
Sec. 202. Use of unexpended
amounts.
Sec. 203. Use of project
residual receipts.
Sec. 204. Additional
provisions.
TITLE III—Assisted living
facilities and service-enriched housing
Sec. 301. Amendments to the
grants for conversion of elderly housing to assisted living
facilities.
Sec. 302. Monthly assistance
payment under rental assistance.
TITLE IV—Compliance with Statutory Pay-As-You-Go Act of
2010
Sec. 401. Budgetary effects.
<enum>I</enum><header display-inline="yes-display-inline">New construction reforms</header>
<section commented="no" display-inline="no-display-inline" id="idc0e41477-4f50-4be3-9686-7ce56f16df91" section-type="subsequent-section"><enum>101.</enum><header display-inline="yes-display-inline">Selection criteria</header><text display-inline="no-display-inline">Section 202(f)(1) of the Housing Act of 1959
(<external-xref legal-doc="usc" parsable-cite="usc/12/1701q">12 U.S.C.
1701q(f)(1)</external-xref>) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id27a1bdf0-2f9e-46b6-9d46-e333e136c47f"><enum>(1)</enum><text display-inline="yes-display-inline">by redesignating subparagraphs (F) and (G)
as subparagraphs (G) and (H), respectively; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ida3fc60f3-3466-4838-9449-0f0f1ac5aded"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting after subparagraph (E) the
following new subparagraph:</text>
<quoted-block display-inline="no-display-inline" id="id0e8295a8-fc3f-42c0-bb97-053a0659cde7" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="idc1555a7f-a22a-4d90-bd9f-17c44f71e4e7" indent="up1"><enum>(F)</enum><text display-inline="yes-display-inline">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>.</after-quoted-block></quoted-block>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="id62fa8b74-7113-4b91-a480-06370dbaf48c" section-type="subsequent-section"><enum>102.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="idae201dca-0612-42f8-abba-027ac35a6092" section-type="subsequent-section"><enum>103.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="id7a34c41f-9c87-4d53-b6b6-c0188deb8195" section-type="subsequent-section"><enum>104.</enum><header display-inline="yes-display-inline">Definition of private nonprofit
organization</header><text display-inline="no-display-inline">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)</external-xref>) is amended
to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idDFEF4871CEF44F8B8818BE98F0139BEE" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="ID5c922f65432940c4b9930104a33ab6f5"><enum>(4)</enum><text display-inline="yes-display-inline">The term <quote>private nonprofit
organization</quote> means—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID114e60570dc348dea6a039c34e1b239e"><enum>(A)</enum><text display-inline="yes-display-inline">any incorporated private institution or
foundation—</text>
<clause commented="no" display-inline="no-display-inline" id="idB546C4C9D08449AD92695EE1DA85325C"><enum>(i)</enum><text display-inline="yes-display-inline">no part of the net earnings of which inures
to the benefit of any member, founder, contributor, or individual;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id8638CE0EB685492FB696D888A2684373"><enum>(ii)</enum><text display-inline="yes-display-inline">which has a governing board—</text>
<subclause commented="no" display-inline="no-display-inline" id="id1D1FF7124D4B48678C286091C057231C"><enum>(I)</enum><text display-inline="yes-display-inline">the membership of which is selected in a
manner to assure that there is significant representation of the views of the
community in which such housing is located; and</text>
</subclause><subclause commented="no" display-inline="no-display-inline" id="id5B9B16C860834FC383E202B1619BB876"><enum>(II)</enum><text display-inline="yes-display-inline">which is responsible for the operation of
the housing assisted under this section, except that, in the case of a
nonprofit organization that is the sponsoring organization of multiple housing
projects assisted under this section, the Secretary may determine the criteria
or conditions under which financial, compliance and other administrative
responsibilities exercised by a single-entity private nonprofit organization
that is the owner corporation responsible for the operation of an individual
housing project may be shared or transferred to the governing board of such
sponsoring organization; and</text>
</subclause></clause><clause commented="no" display-inline="no-display-inline" id="id29C58B1A1C044E019476B053968CFE47"><enum>(iii)</enum><text display-inline="yes-display-inline">which is approved by the Secretary as to
financial responsibility; and</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id1ECBC25AB9DA43E2AB28CE45BD7F6B5F"><enum>(B)</enum><text display-inline="yes-display-inline">a for-profit limited partnership the sole
general partner of which is—</text>
<clause commented="no" display-inline="no-display-inline" id="id36FCD5E931274303AEA34319D1E4994B"><enum>(i)</enum><text display-inline="yes-display-inline">an organization meeting the requirements
under subparagraph (A);</text>
</clause><clause commented="no" display-inline="no-display-inline" id="id1D520C548AF54F4489538624775C755F"><enum>(ii)</enum><text display-inline="yes-display-inline">a for-profit corporation wholly owned and
controlled by one or more organizations meeting the requirements under
subparagraph (A); or</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDae3edfe69317424190aa89bdc6091b3e"><enum>(iii)</enum><text display-inline="yes-display-inline">a limited liability company wholly owned
and controlled by one or more organizations meeting the requirements under
subparagraph
(A).</text>
</clause></subparagraph></paragraph><after-quoted-block>.</after-quoted-block></quoted-block>
</section><section commented="no" display-inline="no-display-inline" id="idf80ea444-5b3f-4e8a-9629-1ffbfd21b44e" section-type="subsequent-section"><enum>105.</enum><header display-inline="yes-display-inline">Nonmetropolitan allocation</header><text display-inline="no-display-inline">Paragraph (3) of section 202(l) of the
Housing Act of 1959 (12 U.S.C. 1701q(l)(3)) 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 display-inline="yes-display-inline">Refinancing</header>
<section commented="no" display-inline="no-display-inline" id="id59e04a4c-d887-44fe-b7c4-49eebb072a00" section-type="subsequent-section"><enum>201.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="idb223c1fd-46eb-4d2d-a970-4bd6653318de"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="idee663754-2d94-42fe-8db4-0a36a50f2dea"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (1)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id73ba5826-320a-46dd-9c46-fb4b1acb4d2b"><enum>(A)</enum><text display-inline="yes-display-inline">by inserting <quote>at least 20 years
following</quote> before <quote>the maturity date</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id5d298b76-a073-4d1c-a94a-2b14eed45c7b"><enum>(B)</enum><text display-inline="yes-display-inline">by inserting <quote>project-based</quote>
before <quote>rental assistance payments contract</quote>;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id772d0ba7-bb56-4e87-b43f-aaa89bdac410"><enum>(C)</enum><text display-inline="yes-display-inline">by inserting <quote>project-based</quote>
before <quote>rental housing assistance programs</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="idf486b823-1a1d-41e2-b1b5-d85fe2875028"><enum>(D)</enum><text display-inline="yes-display-inline">by inserting <quote>, or any successor
project-based rental assistance program,</quote> after
<quote>1701s))</quote>;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id8f80f45f-fcfe-4119-a4a6-7bada0f3229b"><enum>(3)</enum><text display-inline="yes-display-inline">by amending paragraph (2) to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="id87758443-7d53-4261-93a7-105b46969b14" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="id56f5ffad-ceeb-470c-abf7-d5a797ecb557"><enum>(2)</enum><text display-inline="yes-display-inline">the prepayment may involve refinancing of
the loan if such refinancing results in—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id8d4d8769-85db-46d6-b866-ff61a40babcb"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="idb66b7f2c-1c51-4eac-95f2-78093f08ec0b"><enum>(B)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="id8e39659e-a92b-4127-a246-8449def9635d"><enum>(i)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="id92cbdba3-374c-4e81-84a6-ecb26b7e7d23"><enum>(ii)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="idcee2bdcc-ff4d-4863-b113-1877cdfcc90e"><enum>(I)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="idd339b7e4-fba8-40a8-a2c3-df5a59252dc6"><enum>(II)</enum><text display-inline="yes-display-inline">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 (12 U.S.C. 1701q(k));
and</text>
</subclause></clause></subparagraph></paragraph><after-quoted-block>;
and</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id36cbe015-0101-41d3-9602-7e1930e39451"><enum>(4)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="id7f70699a-b765-4dda-a0fa-579767af8b77" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="id75dde8a3-d90d-4a96-a6b1-c0aa74f76155"><enum>(3)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="id809390b2-a8ea-4b7a-9151-7f7d0f859de9" section-type="subsequent-section"><enum>202.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="ideed1ef03-c69c-4c6a-bfc0-d4ea0f0bb692"><enum>(1)</enum><text display-inline="yes-display-inline">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="subsection" style="OLC">Use of
proceeds</header-in-text>.—</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id90186efe-6053-4e4b-a48a-bd0bb20560f0"><enum>(2)</enum><text display-inline="yes-display-inline">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 of the project, or are used in the provision
of affordable rental housing and related social services for elderly persons
that are tenants of the project or are tenants of other HUD-assisted senior
housing by the private nonprofit organization project owner, private nonprofit
organization project sponsor, or private nonprofit organization project
developer, including—</quote>;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idcbcb7825-82d7-4bd7-beb6-2a6e9557ce5e"><enum>(3)</enum><text display-inline="yes-display-inline">by amending paragraph (1) to read as
follows:</text>
<quoted-block display-inline="no-display-inline" id="id6040C8855B8A40CA988983D9AA51B537" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="ID55be5c19183f4121ac6459b9c464995d"><enum>(1)</enum><text display-inline="yes-display-inline">not more than 15 percent of the cost of
increasing the availability or provision of supportive services, which may
include the financing of service coordinators and congregate services, except
that upon the request of the non-profit owner, sponsor, or organization and
determination of the Secretary, such 15 percent limitation may be waived to
ensure that the use of unexpended amounts better enables seniors to age in
place;</text>
</paragraph><after-quoted-block>;</after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id64e82499-c0fa-4a1a-a3f5-cccf8579c4c7"><enum>(4)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="id4f032f21-4930-4bca-ae49-7a5a38fe1e3d"><enum>(5)</enum><text display-inline="yes-display-inline">in paragraph (3), by striking
<quote>or</quote> at the end;</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idcb75cc80-23c8-4e95-9f73-2c8daa62451a"><enum>(6)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="id5388092a-c17b-45d8-8db9-702739ee2e78"><enum>(7)</enum><text display-inline="yes-display-inline">by adding at the end the following new
paragraphs:</text>
<quoted-block display-inline="no-display-inline" id="id3cc8e73b-a2a1-4994-bbf4-3eaf38ff89d4" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="id31b22004-b819-4d50-a399-3e85ffe3e174"><enum>(5)</enum><text display-inline="yes-display-inline">rehabilitation of the project to ensure
long-term viability; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="id461ef740-83e8-4b57-8d15-47009df3b6f8"><enum>(6)</enum><text display-inline="yes-display-inline">the payment to the project owner, sponsor,
or third party developer of a developer’s fee in an amount not to exceed or
duplicate—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id6a73110e-13d3-4dd7-bab7-1fb56296119b"><enum>(A)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="id69592ca9-b5a8-451c-8c0f-5f6a2987143b"><enum>(B)</enum><text display-inline="yes-display-inline">in the case of a project refinanced through
any other source of refinancing, 15 percent of the acceptable development
cost.</text>
</subparagraph></paragraph><quoted-block-continuation-text quoted-block-continuation-text-level="subsection">For
purposes of paragraph (6)(B), the term <quote>acceptable development
cost</quote> 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 commented="no" display-inline="no-display-inline" id="id1d155e2a-4386-43dd-97ed-9a4541d80dfa" section-type="subsequent-section"><enum>203.</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="id18cae2d2-4837-49a8-a90d-4d1c828f35ac"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>not more than 15 percent
of</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idc9a2bb70-6865-46cb-a0a0-2dad7f25b694"><enum>(2)</enum><text display-inline="yes-display-inline">by inserting before the period at the end
the following: <quote>or other purposes approved by the
Secretary</quote>.</text>
</paragraph></section><section commented="no" display-inline="no-display-inline" id="id4b63b912-3cd9-4356-b0b9-3c7d53ac1578" section-type="subsequent-section"><enum>204.</enum><header display-inline="yes-display-inline">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 display-inline="no-display-inline" id="id83551e76-5299-49bf-9888-c70244912fad" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="id0ad3639e-2240-4701-87d6-a600072a53d1"><enum>(e)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="ida8c38c45-a51a-4208-b72c-ae28b12b3e59"><enum>(1)</enum><text display-inline="yes-display-inline">Assistance under the contract shall be made
available to the private nonprofit organization owner—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="idee58f645-997e-47c8-a5d6-bb27dfb7d179"><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 commented="no" display-inline="no-display-inline" id="idd57c03c2-9718-476d-8605-8bf3a9d594d9"><enum>(B)</enum><text display-inline="yes-display-inline">under the same rules governing
project-based rental assistance made available under section 8 of the Housing
Act of 1937 or under the rules of such assistance as may be made available for
the project.</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="id2d13331d-a31a-4d33-be27-69e1dc555908"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="id8f1241b7-c0ef-4730-977b-f910f740791c"><enum>(f)</enum><header display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="id3c2fef7d-3c03-4fda-bdd4-e5998e4e1cfa"><enum>(1)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="id71d534c6-1da1-4d13-bdbb-760add6b933e"><enum>(2)</enum><text display-inline="yes-display-inline">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 commented="no" display-inline="no-display-inline" id="idE06DEE1C19E0477AB4C9E9DE69624A04"><enum>(g)</enum><header display-inline="yes-display-inline">Flexible subsidy debt</header><text display-inline="yes-display-inline">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 the financial
transaction or refinancing cannot be completed without the waiver.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id21e5bb3b-47dd-4c37-bcb1-a595f633c960"><enum>(h)</enum><header display-inline="yes-display-inline">Tenant involvement in prepayment and
refinancing</header><text display-inline="yes-display-inline">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—</text>
<paragraph commented="no" display-inline="no-display-inline" id="id2086C1766DCB449EA5A55F45E8E01A8B"><enum>(1)</enum><text display-inline="yes-display-inline">has determined that the owner of the
project has notified the tenants of the owner’s request for approval of a
prepayment; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idb403ee49-d62c-46fd-8a6a-9ab1a4deede0"><enum>(2)</enum><text display-inline="yes-display-inline">has 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 on the 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 that the owner has responded to such comments
in writing.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id423b96e7-cde4-455c-8568-8cd6465d021b"><enum>(i)</enum><header display-inline="yes-display-inline">Definition of private nonprofit
organization</header><text display-inline="yes-display-inline">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 display-inline="yes-display-inline">Assisted living facilities and
service-enriched housing</header>
<section commented="no" display-inline="no-display-inline" id="id921e56b2-28aa-4833-821c-a1f3e36882dd" section-type="subsequent-section"><enum>301.</enum><header display-inline="yes-display-inline">Amendments to the grants for conversion of
elderly housing to assisted living facilities</header>
<subsection commented="no" display-inline="no-display-inline" id="idAFD46BEC978249E5B64023843799F9E5"><enum>(a)</enum><header display-inline="yes-display-inline">Technical amendment</header><text display-inline="yes-display-inline">The section heading for section 202b of the
Housing Act of 1959 (12 U.S.C. 1701q–2) is amended by inserting
<quote><header-in-text level="section" style="OLC">and other
purposes</header-in-text></quote> after <quote><header-in-text level="section" style="OLC">assisted living facilities</header-in-text></quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id9ADFAC01D1174BF39D0EE39AF5AEDC99"><enum>(b)</enum><header display-inline="yes-display-inline">Extension of grant authority</header><text display-inline="yes-display-inline">Section 202b(a)(2) of the Housing Act of
1959 (12 U.S.C. 1701q–2(a)(2)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="IDe65504170aef4c75b5c20f7168033f3a"><enum>(1)</enum><text display-inline="yes-display-inline">by striking <quote>(2)
<header-in-text level="paragraph" style="OLC">Conversion</header-in-text>.—Activities</quote> and inserting the
following:</text>
<quoted-block display-inline="no-display-inline" id="id98362BFF032348CFA708EB1FD6AA2D92" style="OLC">
<paragraph commented="no" display-inline="no-display-inline" id="id898C736CF1C941A8955C8DDE4AE4CE19"><enum>(2)</enum><header display-inline="yes-display-inline">Conversion</header>
<subparagraph commented="no" display-inline="no-display-inline" id="id87C9FD94D25A4AF5AC4FC17E0132D214"><enum>(A)</enum><header display-inline="yes-display-inline">Assisted living facilities</header><text display-inline="yes-display-inline">Activities</text>
</subparagraph></paragraph><after-quoted-block>;
and </after-quoted-block></quoted-block>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="idBCA0C9FB59E448A3B1240E126DD8788C"><enum>(2)</enum><text display-inline="yes-display-inline">by adding at the end the following:</text>
<quoted-block display-inline="no-display-inline" id="idA4B5ECEF6DF44589A5F92DCC700B405F" style="OLC">
<subparagraph commented="no" display-inline="no-display-inline" id="IDd0be8fc6555e4c77ae59abe1007b273b"><enum>(B)</enum><header display-inline="yes-display-inline">Service-enriched housing</header><text display-inline="yes-display-inline">Activities designed to convert dwelling
units in the eligible project to service-enriched housing for elderly
persons.</text>
</subparagraph><after-quoted-block>.</after-quoted-block></quoted-block>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id6D8A200764914F2D917ECA037F51C356"><enum>(c)</enum><header display-inline="yes-display-inline">Amendment to application
process</header><text display-inline="yes-display-inline">Section 202b(c)(1) of
the Housing Act of 1959 (12 U.S.C. 1701q–2(c)(1)) is amended by inserting
<quote>for either an assisted living facility or service-enriched
housing</quote> after <quote>activities</quote>.</text>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id5EA05749E48E4CDDA6A58B9C63694E20"><enum>(d)</enum><header display-inline="yes-display-inline">Requirements for services</header><text display-inline="yes-display-inline">Section 202b(d) of the Housing Act of 1959
(12 U.S.C. 1701q–2(d)) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="idC22FBC987CB64163B94EBAE7607790B2" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="id2F5459CCB9864946B662E155D33A379B"><enum>(d)</enum><header display-inline="yes-display-inline">Requirements for services</header>
<paragraph commented="no" display-inline="no-display-inline" id="ID70cedd7adfcc4d5190144637e0653d1b"><enum>(1)</enum><header display-inline="yes-display-inline">Sufficient evidence of firm funding
commitments</header><text display-inline="yes-display-inline">The Secretary may
not make a grant under this section for conversion activities unless an
application for a grant submitted pursuant to subsection (c) contains
sufficient evidence, in the determination of the Secretary, of firm commitments
for the funding of services to be provided in the assisted living facility or
service-enriched housing, which may be provided by third parties.</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID09ce05a10180477b8917f9f7b1598b24"><enum>(2)</enum><header display-inline="yes-display-inline">Required evidence</header><text display-inline="yes-display-inline">The Secretary shall require evidence that
each recipient of a grant for service-enriched housing under this section
provides relevant and timely disclosure of information to residents or
potential residents of such housing relating to—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID246f69cf34394d19ad281e245799b3ba"><enum>(A)</enum><text display-inline="yes-display-inline">the services that will be available at the
property to each resident, including—</text>
<clause commented="no" display-inline="no-display-inline" id="IDc629ef634ec1408d9062b51166654fc8"><enum>(i)</enum><text display-inline="yes-display-inline">the right to accept, decline, or choose
such services and to have the choice of provider;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDa09e68c3116649d39b2fa537379e516a"><enum>(ii)</enum><text display-inline="yes-display-inline">the services made available by or
contracted through the grantee;</text>
</clause><clause commented="no" display-inline="no-display-inline" id="IDcaecc33267ba48199d978caae73b255b"><enum>(iii)</enum><text display-inline="yes-display-inline">the identity of, and relevant information
for, all agencies or organizations providing any services to residents, which
agencies or organizations shall provide information regarding all procedures
and requirements to obtain services, any charges or rates for the services, and
the rights and responsibilities of the residents related to those
services;</text>
</clause></subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID9c32697e4c564f89a7230c248adcd92b"><enum>(B)</enum><text display-inline="yes-display-inline">the availability, identity, contact
information, and role of the service coordinator; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID8b2a3ac087a746dc823aa9637bb84bb1"><enum>(C)</enum><text display-inline="yes-display-inline">such other information as the Secretary
determines to be appropriate to ensure that residents are adequately informed
of the services options available to promote resident independence and quality
of
life.</text>
</subparagraph></paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection><subsection commented="no" display-inline="no-display-inline" id="id8ECF701B419049C9974F116194EB1A84"><enum>(e)</enum><header display-inline="yes-display-inline">Amendments to selection
criteria</header><text display-inline="yes-display-inline">Section 202b(e) of
the Housing Act of 1959 (12 U.S.C. 1701q–2(e)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID0d16fb361f2545f5af1198bafa0400ad"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (2)—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="id0D3906ADDC734248B0A996DD9DFF59C7"><enum>(A)</enum><text display-inline="yes-display-inline">by inserting <quote>or service-enriched
housing</quote> after <quote>facilities</quote>; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="id670F307C0B2A492396B14E99EAF4D2BE"><enum>(B)</enum><text display-inline="yes-display-inline">by inserting <quote>service-enriched
housing</quote> after <quote>facility</quote>;</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID2071533acaff459eacc945e9d5233e61"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (5), by inserting <quote>or
service-enriched housing</quote> after <quote>facility</quote>; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID3e4e93e6298946f6a01c4729f843641c"><enum>(3)</enum><text display-inline="yes-display-inline">in paragraph (6), by inserting <quote>or
service-enriched housing</quote> after <quote>facility</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id93933E85B62D458C9034E3B8382E096F"><enum>(f)</enum><header display-inline="yes-display-inline">Amendments to section 8 project-based
assistance</header><text display-inline="yes-display-inline">Section 202b(f) of
the Housing Act of 1959 (12 U.S.C. 1701q–2(f)) is amended—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID34979f5dba98405a8a8b349a84083ccf"><enum>(1)</enum><text display-inline="yes-display-inline">in paragraph (1), by inserting <quote>or
service-enriched housing</quote> after <quote>facilities</quote> each time that
term appears; and</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="IDe987a442b49d4abd8aa1931d12e30f9e"><enum>(2)</enum><text display-inline="yes-display-inline">in paragraph (2), by inserting <quote>or
service-enriched housing</quote> after <quote>facility</quote>.</text>
</paragraph></subsection><subsection commented="no" display-inline="no-display-inline" id="id23B1FC5286814A7FAE013F50D16555E2"><enum>(g)</enum><header display-inline="yes-display-inline">Amendments to definitions</header><text display-inline="yes-display-inline">Section 202b(g) of the Housing Act of 1959
(12 U.S.C. 1701q–2(g)) is amended to read as follows:</text>
<quoted-block display-inline="no-display-inline" id="id9A759A4E0D794631B6B19E6D7D1677CF" style="OLC">
<subsection commented="no" display-inline="no-display-inline" id="id09017E7506744F4EB7A9D8C8A8369325"><enum>(g)</enum><header display-inline="yes-display-inline">Definitions</header><text display-inline="yes-display-inline">For purposes of this section—</text>
<paragraph commented="no" display-inline="no-display-inline" id="ID2f29542836f24dd1b188d9486811ef60"><enum>(1)</enum><text display-inline="yes-display-inline">the term <quote>assisted living
facility</quote> has the meaning given such term in section 232(b) of the
National Housing Act (1715w(b));</text>
</paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID31290aa3091a4433bf1731a2b0ba6056"><enum>(2)</enum><text display-inline="yes-display-inline">the term <quote>service-enriched
housing</quote> means housing that—</text>
<subparagraph commented="no" display-inline="no-display-inline" id="ID455d1665d86345d292cc11cde8a03dce"><enum>(A)</enum><text display-inline="yes-display-inline">makes available through licensed or
certified third party service providers supportive services to assist the
residents in carrying out activities of daily living, such as bathing,
dressing, eating, getting in and out of bed or chairs, walking, going outdoors,
using the toilet, laundry, home management, preparing meals, shopping for
personal items, obtaining and taking medication, managing money, using the
telephone, or performing light or heavy housework, and which may make available
to residents home health care services, such as nursing and therapy;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID8c2c8778413541ddabd4270b73689dd9"><enum>(B)</enum><text display-inline="yes-display-inline">includes the position of service
coordinator, which may be funded as an operating expense of the property;</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="ID0b2e13d2e52944e8b205344b3e0ac52a"><enum>(C)</enum><text display-inline="yes-display-inline">provides separate dwelling units for
residents, each of which contains 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 housing; and</text>
</subparagraph><subparagraph commented="no" display-inline="no-display-inline" id="IDbd073cb96253478aacdaae0aa4ffdd19"><enum>(D)</enum><text display-inline="yes-display-inline">provides residents with control over health
care and supportive services decisions, including the right to accept, decline,
or choose such services, and to have the choice of provider; and</text>
</subparagraph></paragraph><paragraph commented="no" display-inline="no-display-inline" id="ID5da780dc36d844a79386b86fab27e718"><enum>(3)</enum><text display-inline="yes-display-inline">the definitions in section 1701(q)(k) of
this title shall
apply.</text>
</paragraph></subsection><after-quoted-block>.</after-quoted-block></quoted-block>
</subsection></section><section commented="no" display-inline="no-display-inline" id="id7632c938-aacf-4101-9a0b-9cf4d967e369" section-type="subsequent-section"><enum>302.</enum><header display-inline="yes-display-inline">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 display-inline="yes-display-inline">Compliance with Statutory Pay-As-You-Go Act
of 2010</header>
<section commented="no" display-inline="no-display-inline" id="id6EFEB4D76A8B4B72B98AAEC72D71C376" section-type="subsequent-section"><enum>401.</enum><header display-inline="yes-display-inline">Budgetary effects</header><text display-inline="no-display-inline">The budgetary effects of this Act, for the
purpose of complying with the Statutory Pay-As-You-Go-Act of 2010, shall be
determined by reference to the latest statement titled <quote>Budgetary Effects
of PAYGO Legislation</quote> for this Act, submitted for printing in the
Congressional Record by the Chairman of the Senate Budget Committee, provided
that such statement has been submitted prior to the vote on passage.</text>
</section>
Speaker of the House of Representatives
Vice President of the United States and President of the
Senate