[Congressional Bills 111th Congress]
[From the U.S. Government Publishing Office]
[S. 118 Introduced in Senate (IS)]
111th CONGRESS
1st Session
S. 118
To amend section 202 of the Housing Act of 1959, to improve the program
under such section for supportive housing for the elderly, and for
other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
January 6, 2009
Mr. Kohl (for himself, Mr. Schumer, Mr. Durbin, Mr. Brown, Mr. Nelson
of Florida, Ms. Stabenow, Mr. Leahy, and Mr. Casey) introduced the
following bill; which was read twice and referred to the Committee on
Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To amend section 202 of the Housing Act of 1959, to improve the program
under such section for supportive housing for the elderly, and for
other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``Section 202
Supportive Housing for the Elderly Act of 2009''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
Sec. 1. Short title and table of contents.
TITLE I--NEW CONSTRUCTION REFORMS
Sec. 101. Project rental assistance.
Sec. 102. Selection criteria.
Sec. 103. Development cost limitations.
Sec. 104. Owner deposits.
Sec. 105. Definition of private nonprofit organization.
Sec. 106. Preferences for homeless elderly.
Sec. 107. Nonmetropolitan allocation.
TITLE II--REFINANCING
Sec. 201. Approval of prepayment of debt.
Sec. 202. Sources of refinancing.
Sec. 203. Use of unexpended amounts.
Sec. 204. Use of project residual receipts.
Sec. 205. Additional provisions.
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.
TITLE I--NEW CONSTRUCTION REFORMS
SEC. 101. PROJECT RENTAL ASSISTANCE.
Paragraph (2) of section 202(c) of the Housing Act of 1959 (12
U.S.C. 1701q(c)(2)) is amended--
(1) by inserting after ``assistance.--'' the following:
``(A) Initial project rental assistance contract.--'';
(2) in the last sentence, by striking ``may'' and inserting
``shall''; and
(3) 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, 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.
``(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.''.
SEC. 102. SELECTION CRITERIA.
Section 202(f)(1) of the Housing Act of 1959 (12 U.S.C. 1701q(f))
is amended--
(1) by redesignating subparagraphs (F) and (G) as
subparagraphs (G) and (H), respectively; and
(2) by inserting after subparagraph (E) (as so redesignated
by paragraph (2) of this subsection) the following new
subparagraph:
``(F) 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);''.
SEC. 103. DEVELOPMENT COST LIMITATIONS.
Section 202(h)(1) of the Housing Act of 1959 (12 U.S.C.
1701q(h)(1)) is amended, in the matter preceding subparagraph (A), by
inserting ``reasonable'' before ``development cost limitations''.
SEC. 104. OWNER DEPOSITS.
Section 202(j)(3)(A) of the Housing Act of 1959 (12 U.S.C.
1701q(j)(3)(A)) is amended by inserting after the period at the end the
following: ``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.''.
SEC. 105. DEFINITION OF PRIVATE NONPROFIT ORGANIZATION.
Subparagraph (B) of section 202(k)(4) of the Housing Act of 1959
(12 U.S.C. 1701q(k)(4)(B)) is amended by inserting before the semicolon
the following: ``, 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)''.
SEC. 106. PREFERENCES FOR HOMELESS ELDERLY.
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:
``(9) Preferences for homeless elderly.--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--
``(A) such preference is consistent with paragraph
(2); and
``(B) 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.''.
SEC. 107. NONMETROPOLITAN ALLOCATION.
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: ``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.''.
TITLE II--REFINANCING
SEC. 201. APPROVAL OF PREPAYMENT OF DEBT.
Subsection (a) of section 811 of the American Homeownership and
Economic Opportunity Act of 2000 (12 U.S.C. 1701q note) is amended--
(1) in the matter preceding paragraph (1), by inserting ``,
for which the Secretary's consent to prepayment is required,''
after ``Affordable Housing Act)'';
(2) in paragraph (1)--
(A) by inserting ``at least 20 years following''
before ``the maturity date'';
(B) by inserting ``project-based'' before ``rental
assistance payments contract'';
(C) by inserting ``project-based'' before ``rental
housing assistance programs''; and
(D) by inserting ``, or any successor project-based
rental assistance program,'' after ``1701s))'';
(3) by amending paragraph (2) to read as follows:
``(2) the prepayment may involve refinancing of the loan if
such refinancing results in--
``(A) a lower interest rate on the principal of the
loan for the project and in reductions in debt service
related to such loan; or
``(B) a transaction in which the project owner will
address the physical needs of the project, but only if,
as a result of the refinancing--
``(i) the rent charges for unassisted
families residing in the project do not
increase or such families are provided rental
assistance under a senior preservation rental
assistance contract for the project pursuant to
subsection (e); and
``(ii) the overall cost for providing
rental assistance under section 8 for the
project (if any) is not increased, except, upon
approval by the Secretary to--
``(I) 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
``(II) 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''; and
(4) by adding at the end the following:
``(3) 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.''.
SEC. 202. SOURCES OF REFINANCING.
The last sentence of section 811(b) of the American Homeownership
and Economic Opportunity Act of 2000 (12 U.S.C. 1701q note) is
amended--
(1) by inserting after ``National Housing Act,'' the
following: ``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),''; and
(2) by striking ``may'' and inserting ``shall''.
SEC. 203. USE OF UNEXPENDED AMOUNTS.
Subsection (c) of section 811 of the American Homeownership and
Economic Opportunity Act of 2000 (12 U.S.C. 1701q note) is amended--
(1) by striking ``Use of Unexpended Amounts.--'' and
inserting ``Use of Proceeds.--'';
(2) by amending the matter preceding paragraph (1) to read
as follows: ``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--'';
(3) in paragraph (1), by striking ``not more than 15
percent of'';
(4) in paragraph (2), by inserting before the semicolon the
following; ``, including reducing the number of units by
reconfiguring units that are functionally obsolete,
unmarketable, or not economically viable'';
(5) in paragraph (3), by striking ``or'' at the end;
(6) in paragraph (4), by striking ``according to a pro rata
allocation of shared savings resulting from the refinancing.''
and inserting a semicolon; and
(7) by adding at the end the following new paragraphs:
``(5) rehabilitation of the project to ensure long-term
viability;
``(6) the payment to the project owner, sponsor, or third
party developer of a developer's fee in an amount not to
exceed--
``(A) 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
``(B) in the case of a project refinanced through
any other source of refinancing, 15 percent of the
acceptable development cost; and
``(7) the payment of equity, if any, to--
``(A) 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
``(B) 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.
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.''.
SEC. 204. USE OF PROJECT RESIDUAL RECEIPTS.
Paragraph (1) of section 811(d) of the American Homeownership and
Economic Opportunity Act of 2000 (12 U.S.C. 1701q note) is amended--
(1) by striking ``not more than 15 percent of''; and
(2) by inserting before the period at the end the
following: ``or other purposes approved by the Secretary''.
SEC. 205. ADDITIONAL PROVISIONS.
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:
``(e) Senior Preservation Rental Assistance Contracts.--
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:
``(1) Assistance under the contract shall be made available
to the private nonprofit organization owner--
``(A) for a term of at least 20 years, subject to
annual appropriations; and
``(B) under the same rules governing project-based
rental assistance made available under section 8 of the
Housing Act of 1937.
``(2) 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.
``(f) Mortgage Sale Demonstration.--
``(1) In general.--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 (12 U.S.C. 1701z-11). 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.
``(2) Limitations.--In carrying out the demonstration
program required under paragraph (1), the Secretary shall--
``(A) 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;
``(B) 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
``(C) only carry out the demonstration program in a
State that has experience with operating and
maintaining a housing preservation revolving loan fund.
``(3) Study.--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.
``(4) Report.--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--
``(A) the findings of the study required under
paragraph (3); and
``(B) any recommendations the Secretary may have
for expanding the demonstration project required under
paragraph (1).
``(g) Subordination or Assumption of Existing Debt.--In lieu of
prepayment under this section of the indebtedness with respect to a
project, the Secretary may approve--
``(1) 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
``(2) 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.
``(h) Flexible Subsidy Debt.--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 (12 U.S.C. 1715z-1a) 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.
``(i) Tenant Involvement in Prepayment and Refinancing.--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--
``(1) determined that the owner of the project has notified
the tenants of the owner's request for approval of a
prepayment;
``(2) 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
``(3) taken such comments into consideration.
``(j) Definition of Private Nonprofit Organization.--For purposes
of this section, the term `private nonprofit organization' has the
meaning given such term in section 202(k) of the Housing Act of 1959
(12 U.S.C. 1701q(k)).''.
TITLE III--ASSISTED LIVING FACILITIES
SEC. 301. DEFINITION OF ASSISTED LIVING FACILITY.
Section 202b(g) of the Housing Act of 1959 (12 U.S.C. 1701q-2(g))
is amended by striking paragraph (1) and inserting the following new
paragraph:
``(1) the term `assisted living facility' means a facility
that--
``(A) is owned by a private nonprofit organization;
and
``(B)(i) 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
``(ii)(I) 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
``(II) 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''.
SEC. 302. MONTHLY ASSISTANCE PAYMENT UNDER RENTAL ASSISTANCE.
Clause (iii) of section 8(o)(18)(B) of the United States Housing
Act of 1937 (42 U.S.C. 1437f(o)(18)(B)(iii)) is amended by inserting
before the period at the end the following: ``, 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.''.
TITLE IV--FACILITATING AFFORDABLE HOUSING PRESERVATION TRANSACTIONS
SEC. 401. USE OF SALE OR REFINANCING PROCEEDS.
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.
TITLE V--NATIONAL SENIOR HOUSING CLEARINGHOUSE
SEC. 501. NATIONAL SENIOR HOUSING CLEARINGHOUSE.
(a) Establishment.--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--
(1) the availability of--
(A) 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;
(B) properties and units eligible for assistance
under section 8 of the United States Housing Act of
1937 (42 U.S.C. 1437f);
(C) properties eligible for the low-income housing
tax credit under section 42 of the Internal Revenue
Code of 1986;
(D) units in assisted living facilities insured
pursuant to section 221(d)(4) of the National Housing
Act (12 U.S.C. 1715l(d)(4));
(E) 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
(F) any other federally assisted or subsidized
housing for the elderly;
(2) the number of available units in each property,
project, or facility described in paragraph (1);
(3) the number of bedrooms in each available unit in each
property, project, or facility described in paragraph (1);
(4) 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);
(5) the presence of a waiting list for entry into any
available unit in each property, project, or facility described
in paragraph (1);
(6) the number of persons on the waiting list for entry
into any available unit in each property, project, or facility
described in paragraph (1);
(7) 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);
(8) the amenities available in each available unit in each
property, project, or facility described in paragraph (1),
including--
(A) the services provided by such property,
project, or facility;
(B) the size and availability of common space
within each property, project, or facility;
(C) the availability of organized activities for
individuals residing in such property, project, or
facility; and
(D) any other additional amenities available to
individuals residing in such property, project, or
facility;
(9) the level of care (personal, physical, or nursing)
available to individuals residing in any property, project, or
facility described in paragraph (1);
(10) whether there is a service coordinator in any
property, project, or facility described in paragraph (1); and
(11) any other criteria determined appropriate by the
Secretary.
(b) Collection and Updating of Information.--
(1) Initial collection.--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.
(2) Response time.--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.
(3) Public availability.--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.
(4) Updates.--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.
(c) Functions.--The clearinghouse established under subsection (a)
shall--
(1) 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;
(2) make such information publicly available via the
Internet website of the Department of Housing and Urban
Development, which shall include--
(A) access via electronic mail; and
(B) 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;
(3) establish a toll-free number to provide the public with
specific information regarding the availability of housing in
multifamily developments for elderly tenants; and
(4) perform any other duty that the Secretary determines
necessary to achieve the purposes of this section.
(d) Authorization of Appropriations.--There are authorized to be
appropriated such sums as necessary to carry out this section.
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