[Congressional Record Volume 146, Number 75 (Thursday, June 15, 2000)]
[Senate]
[Pages S5241-S5251]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. SANTORUM (for himself and Mr. Sarbanes):
  S. 2733. A bill to provide for the preservation of assisted housing 
for low income elderly persons, disabled persons, and other families; 
to the Committee on Banking, Housing, and Urban Affairs.


            affordable housing for seniors and families act

 Mr. SANTORUM. Mr. President, I rise with great pride to 
introduce the Affordable Housing for Seniors and Families Act. I am 
very pleased to say that Senator Kerry of Massachusetts and Senator 
Sarbanes are original cosponsors of this bill.
  Even as our national economy flourishes, many Americans are 
struggling to find safe, decent, sanitary, affordable housing. HUD 
estimates that 5.4 million families are either paying over half of 
their incomes for rent or living in substandard housing. Of these 
households, 1.4 million, or 26%, are elderly or disabled. The scarcity 
of affordable housing is particularly troubling for seniors and the 
disabled who may require special structural accommodations in their 
homes.
  As Vice Chairman of the Subcommittee on Housing and Transportation, 
and as a member of the Aging Committee, I feel a heightened sense of 
urgency in helping these special populations find housing. Thus, I am 
pleased to offer a bill which: reauthorizes federal funding for elderly 
and disabled housing programs; expands supportive housing opportunities 
for these special populations; codifies options to enhance the 
financial viability of the projects; assists sponsors in offering a 
``continuum of care'' that allows people to live independently and with 
dignity; offers incentives to preserve the stock of affordable housing 
that is at risk of loss due to prepayment, Section 8 opt-out, or 
deterioration; and modernizes current laws allowing the FHA to insure 
mortgages on hospitals, assisted living facilities, and nursing homes. 
Together, I believe these measures will help to fill the critical 
housing needs of elderly and disabled families.
  On September 27, 1999, the House of Representatives overwhelmingly 
approved the Preserving Affordable Housing for Senior Citizens in the 
21st Century Act (H.R. 202) by a vote of 405-5.

[[Page S5242]]

 Several aspects of H.R. 202, which protected residents in the event 
that their landlords did not renew their project based Section 8 
contracts, were included in the FY 2000 VA-HUD appropriations bill. The 
legislation I offer today is modeled on the House-passed bill, without 
the preservation provisions that have already been enacted. I would 
like to take a few moments to highlight the major provisions of this 
bill.
  The Section 202 elderly housing program and the Section 811 disabled 
housing program each provide crucial affordable housing for very low-
income individuals, whose incomes are 50 percent or below of the area 
median income. By law, sponsors, or owners, of Section 202 or Section 
811 housing must be non-profit organizations. Many sponsors are faith-
based. The Affordable Housing for Seniors and Families Act will 
increase the stock of Section 202 and 811 housing in several ways. 
First, it reauthorizes funding for Section 202 and 811 housing programs 
in the amount of $700 million and $225 million, respectively, in FY 01. 
Such sums as are necessary are authorized for FY 02 through FY 04. 
Second, it creates an optional matching grant program that will enable 
sponsors to leverage additional money for construction. Third, it 
allows Section 202 housing sponsors to buy new properties.
  This legislation also codifies options giving owners financial 
flexibility to use sources of income besides the Section 202 and 
Section 811 funds. For instance, by requiring HUD to approve prepayment 
of the 202 mortgages, this bill allows sponsors to build equity in 
their projects, which can be used to leverage funding for capital 
improvements or services for tenants. It gives sponsors maximum 
flexibility to use all sources of financing, including federal money, 
for construction, amenities, and relevant design features. In order to 
raise additional outside revenue and offer a convenience to tenants, 
owners are permitted to rent space to commercial facilities. In the 
cases of both Section 202 and 811 housing, owners may use their project 
reserves to retrofit or modernize obsolete or unmarketable units. 
Finally, this bill allows project sponsors to form limited partnerships 
with for-profit entities. Through such a partnership, sponsors can also 
compete for the Low Income Housing Tax Credit, and build larger 
developments.

  The importance of providing a ``continuum of care'' for seniors and 
disabled persons to continue living independently is addressed in the 
Affordable Housing for Seniors and Families Act. For example, this bill 
helps seniors stay in their apartments as they become older and more 
frail by authorizing competitive grants for conversion of elderly 
housing and public housing projects designated for occupancy by elderly 
persons to assisted living facilities. Responding to obstacles the 
handicapped face in finding special-needs housing, it allows private 
non-profits to administer tenant-based rental assistance for the 
disabled. It also ensures that funding will continue to be invested in 
building housing for the disabled by limiting funding for tenant-based 
assistance under the Section 811 program to 25% of the program's 
appropriation. Funding for service coordinators, who link residents 
with supportive or medical services in the community, is authorized 
through FY 04. Moreover, service coordinators are permitted to assist 
low-income elderly or disabled families in the vicinity of their 
projects. Seniors who live in their own houses will be assisted by a 
provision in Title V which allows them to maximize the equity in their 
homes by streamlining the process of refinancing an existing federal-
insured reverse mortgage.
  Title IV of this legislation focuses on preserving the existing stock 
of federally assisted properties as affordable housing for low and very 
low-income families. Each year, 100,000 low-cost apartments across the 
country are demolished, abandoned, or converted to market rate use. For 
every 100 extremely low-income households, having 30% or less of area 
median income, only 36 units were both affordable and available. Even 
in rural areas, the potential loss of assisted, affordable housing is 
very real due to prepayment of mortgages, opt-out of assisted housing 
programs upon contract expirations, frustration with government 
bureaucracy, or simply a recognition that the building would be more 
profitable as market-rate housing. Title IV responds with a matching 
grant program to assist state and local governments who are devoting 
their own money to affordable housing preservation. Likewise, it 
authorizes a competitive grant program to assist nonprofits in buying 
federally assisted property.
  Current law allowing the Federal Housing Administration (FHA) to 
insure mortgages on hospitals, nursing homes, and assisted living 
facilities has become outdated. Title V modernizes the law and removes 
barriers to using FHA insurance for such facilities. Likewise, it 
recognizes the integrated nature of healthcare by allowing the FHA to 
provide mortgage insurance for ``integrated service facilities,'' such 
as ambulatory care centers, which treat sick, injured, disabled, 
elderly, or infirm persons.
  Mr. President, I urge my colleagues to cosponsor this important 
bipartisan legislation. In closing, I would like to express my 
gratitude to Senator Kerry for working closely with me on this 
important legislation. I also would like to thank Senator Sarbanes for 
his cosponsorship.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2733

       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 ``Affordable 
     Housing for Seniors and Families Act''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title and table of contents.
Sec. 2. Regulations.
Sec. 3. Effective date.

TITLE I--REFINANCING FOR SECTION 202 SUPPORTIVE HOUSING FOR THE ELDERLY

Sec. 101. Prepayment and refinancing.

 TITLE II--AUTHORIZATION OF APPROPRIATIONS FOR SUPPORTIVE HOUSING FOR 
               THE ELDERLY AND PERSONS WITH DISABILITIES

Sec. 201. Supportive housing for elderly persons.
Sec. 202. Supportive housing for persons with disabilities.
Sec. 203. Service coordinators and congregate services for elderly and 
              disabled housing.

TITLE III--EXPANDING HOUSING OPPORTUNITIES FOR THE ELDERLY AND PERSONS 
                           WITH DISABILITIES

                  Subtitle A--Housing for the Elderly

Sec. 301. Matching grant program.
Sec. 302. Eligibility of for-profit limited partnerships.
Sec. 303. Mixed funding sources.
Sec. 304. Authority to acquire structures.
Sec. 305. Mixed-income occupancy.
Sec. 306. Use of project reserves.
Sec. 307. Commercial activities.
Sec. 308. Mixed finance pilot program.
Sec. 309. Grants for conversion of elderly housing to assisted living 
              facilities.
Sec. 310. Grants for conversion of public housing projects to assisted 
              living facilities.
Sec. 311. Annual HUD inventory of assisted housing designated for 
              elderly persons.
Sec. 312. Treatment of applications.

           Subtitle B--Housing for Persons With Disabilities

Sec. 321. Matching grant program.
Sec. 322. Eligibility of for-profit limited partnerships.
Sec. 323. Mixed funding sources.
Sec. 324. Tenant-based assistance.
Sec. 325. Use of project reserves.
Sec. 326. Commercial activities.

                      Subtitle C--Other Provisions

Sec. 341. Service coordinators.

           TITLE IV--PRESERVATION OF AFFORDABLE HOUSING STOCK

Sec. 401. Matching grant program for affordable housing preservation.
Sec. 402. Assistance for nonprofit purchasers preserving affordable 
              housing.
Sec. 403. Section 236 assistance.
Sec. 404. Preservation projects.

TITLE V--MORTGAGE INSURANCE FOR HEALTH CARE FACILITIES AND HOME EQUITY 
                          CONVERSION MORTGAGES

Sec. 501. Rehabilitation of existing hospitals, nursing homes, and 
              other facilities.
Sec. 502. New integrated service facilities.
Sec. 503. Hospitals and hospital-based integrated service facilities.
Sec. 504. Home equity conversion mortgages.

     SEC. 2. REGULATIONS.

       The Secretary of Housing and Urban Development (referred to 
     in this Act as the ``Secretary'') shall issue any regulations 
     to carry

[[Page S5243]]

     out this Act and the amendments made by this Act that the 
     Secretary determines may or will affect tenants of federally 
     assisted housing only after notice and opportunity for public 
     comment in accordance with the procedure under section 553 of 
     title 5, United States Code, applicable to substantive rules 
     (notwithstanding subsections (a)(2), (b)(B), and (d)(3) of 
     such section). Notice of such proposed rulemaking shall be 
     provided by publication in the Federal Register. In issuing 
     such regulations, the Secretary shall take such actions as 
     may be necessary to ensure that such tenants are notified of, 
     and provided an opportunity to participate in, the 
     rulemaking, as required by such section 553.

     SEC. 3. EFFECTIVE DATE.

       (a) In General.--The provisions of this Act and the 
     amendments made by this Act are effective as of the date of 
     enactment of this Act, unless such provisions or amendments 
     specifically provide for effectiveness or applicability upon 
     another date certain.
       (b) Effect of Regulatory Authority.--Any authority in this 
     Act or the amendments made by this Act to issue regulations, 
     and any specific requirement to issue regulations by a date 
     certain, may not be construed to affect the effectiveness or 
     applicability of the provisions of this Act or the amendments 
     made by this Act under such provisions and amendments and 
     subsection (a) of this section.

TITLE I--REFINANCING FOR SECTION 202 SUPPORTIVE HOUSING FOR THE ELDERLY

     SEC. 101. PREPAYMENT AND REFINANCING.

       (a) Approval of Prepayment of Debt.--Upon request of the 
     project sponsor of a project assisted with a loan under 
     section 202 of the Housing Act of 1959 (as in effect before 
     the enactment of the Cranston-Gonzalez National Affordable 
     Housing Act), the Secretary shall approve the prepayment of 
     any indebtedness to the Secretary relating to any remaining 
     principal and interest under the loan as part of a prepayment 
     plan under which--
       (1) the project sponsor agrees to operate the project until 
     the maturity date of the original loan under terms at least 
     as advantageous to existing and future tenants as the terms 
     required by the original loan agreement or any rental 
     assistance payments contract under section 8 of the United 
     States Housing Act of 1937 (or any other rental housing 
     assistance programs of the Department of Housing and Urban 
     Development, including the rent supplement program under 
     section 101 of the Housing and Urban Development Act of 1965 
     (12 U.S.C. 1701s)) relating to the project; and
       (2) the prepayment may involve refinancing of the loan if 
     such refinancing results in a lower interest rate on the 
     principal of the loan for the project and in reductions in 
     debt service related to such loan.
       (b) Sources of Refinancing.--In the case of prepayment 
     under this section involving refinancing, the project sponsor 
     may refinance the project through any third party source, 
     including financing by State and local housing finance 
     agencies, use of tax-exempt bonds, multi-family mortgage 
     insurance under the National Housing Act, reinsurance, or 
     other credit enhancements, including risk sharing as provided 
     under section 542 of the Housing and Community Development 
     Act of 1992 (12 U.S.C. 1707 note). For purposes of 
     underwriting a loan insured under the National Housing Act, 
     the Secretary may assume that any section 8 rental assistance 
     contract relating to a project will be renewed for the term 
     of such loan.
       (c) Use of Unexpended Amounts.--Upon execution of the 
     refinancing for a project pursuant to this section, the 
     Secretary shall make available at least 50 percent of the 
     annual savings resulting from reduced section 8 or other 
     rental housing assistance contracts in a manner that is 
     advantageous to the tenants, including--
       (1) 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;
       (2) rehabilitation, modernization, or retrofitting of 
     structures, common areas, or individual dwelling units;
       (3) construction of an addition or other facility in the 
     project, including assisted living facilities (or, upon the 
     approval of the Secretary, facilities located in the 
     community where the project sponsor refinances a project 
     under this section, or pools shared resources from more than 
     1 such project); or
       (4) rent reduction of unassisted tenants residing in the 
     project according to a pro rata allocation of shared savings 
     resulting from the refinancing.
       (d) Use of Certain Project Funds.--The Secretary shall 
     allow a project sponsor that is prepaying and refinancing a 
     project under this section--
       (1) to use any residual receipts held for that project in 
     excess of $500 per individual dwelling unit for not more than 
     15 percent of the cost of activities designed to increase the 
     availability or provision of supportive services; and
       (2) to use any reserves for replacement in excess of $1,000 
     per individual dwelling unit for activities described in 
     paragraphs (2) and (3) of subsection (c).
       (e) Budget Act Compliance.--This section shall be effective 
     only to extent or in such amounts that are provided in 
     advance in appropriation Acts.

 TITLE II--AUTHORIZATION OF APPROPRIATIONS FOR SUPPORTIVE HOUSING FOR 
               THE ELDERLY AND PERSONS WITH DISABILITIES

     SEC. 201. SUPPORTIVE HOUSING FOR ELDERLY PERSONS.

       Section 202 of the Housing Act of 1959 (12 U.S.C. 1701q) is 
     amended by adding at the end the following:
       ``(m) Authorization of Appropriations.--There is authorized 
     to be appropriated for providing assistance under this 
     section $700,000,000 for fiscal year 2001 and such sums as 
     may be necessary for each of fiscal years 2002, 2003, and 
     2004. Of the amount provided in appropriation Acts for 
     assistance under this section in each such fiscal year, 5 
     percent shall be available only for providing assistance in 
     accordance with the requirements under subsection (c)(4) 
     (relating to matching funds), except that if there are 
     insufficient eligible applicants for such assistance, any 
     amount remaining shall be used for assistance under this 
     section.''.

     SEC. 202. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES.

       Section 811 of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 8013) is amended by striking 
     subsection (m) and inserting the following:
       ``(m) Authorization of Appropriations.--There is authorized 
     to be appropriated for providing assistance under this 
     section $225,000,000 for fiscal year 2001 and such sums as 
     may be necessary for each of fiscal years 2002, 2003, and 
     2004. Of the amount provided in appropriation Acts for 
     assistance under this section in each such fiscal year, 5 
     percent shall be available only for providing assistance in 
     accordance with the requirements under subsection (d)(5) 
     (relating to matching funds), except that if there are 
     insufficient eligible applicants for such assistance, any 
     amount remaining shall be used for assistance under this 
     section.''.

     SEC. 203. SERVICE COORDINATORS AND CONGREGATE SERVICES FOR 
                   ELDERLY AND DISABLED HOUSING.

       There is authorized to be appropriated to the Secretary 
     $50,000,000 for fiscal year 2001, and such sums as may be 
     necessary for each of fiscal years 2002, 2003, and 2004, for 
     the following purposes:
       (1) Grants for service coordinators for certain federally 
     assisted multifamily housing.--For grants under section 676 
     of the Housing and Community Development Act of 1992 (42 
     U.S.C. 13632) for providing service coordinators.
       (2) Congregate services for federally assisted housing.--
     For contracts under section 802 of the Cranston-Gonzalez 
     National Affordable Housing Act (42 U.S.C. 8011) to provide 
     congregate services programs for eligible residents of 
     eligible housing projects under subparagraphs (B) through (D) 
     of subsection (k)(6) of such section.

TITLE III--EXPANDING HOUSING OPPORTUNITIES FOR THE ELDERLY AND PERSONS 
                           WITH DISABILITIES

                  Subtitle A--Housing for the Elderly

     SEC. 301. MATCHING GRANT PROGRAM.

       Section 202 of the Housing Act of 1959 (12 U.S.C. 1701q) is 
     amended--
       (1) in subsection (b), in the second sentence, by inserting 
     ``or through matching grants under subsection (c)(4)'' after 
     ``subsection (c)(1)''; and
       (2) in subsection (c), by adding at the end the following:
       ``(4) Matching grants.--
       ``(A) In general.--
       ``(i) 15 percent minimum.--Amounts made available for 
     assistance under this paragraph shall be used only for 
     capital advances in accordance with paragraph (1), except 
     that the Secretary shall require that, as a condition of 
     providing assistance under this paragraph for a project, the 
     applicant for assistance shall supplement the assistance with 
     amounts from sources other than this section in an amount 
     that is not less than 15 percent of the amount of assistance 
     provided pursuant to this paragraph for the project.
       ``(ii) Preference.--In providing assistance under this 
     paragraph, the Secretary shall take into consideration the 
     degree to which the applicant will supplement that assistance 
     with amounts from sources other than this section and, all 
     other factors being equal, shall give preference to 
     applicants whose supplemental assistance is equal to the 
     highest percentage of the amount of assistance provided 
     pursuant to this paragraph for the project.
       ``(B) Requirement for non-federal funds.--Not less than 50 
     percent of supplemental amounts provided for a project 
     pursuant to subparagraph (A) shall be from non-Federal 
     sources. Such supplemental amounts may include the value of 
     any in-kind contributions, including donated land, 
     structures, equipment, and other contributions as the 
     Secretary considers appropriate, but only if the existence of 
     such in-kind contributions results in the construction of 
     more dwelling units than would have been constructed absent 
     such contributions.
       ``(C) Income eligibility.--Notwithstanding any other 
     provision of this section, the Secretary shall provide that, 
     in a project assisted under this paragraph, a number of 
     dwelling units may be made available for occupancy by elderly 
     persons who are not very low-income persons in a number such 
     that the ratio that the number of dwelling units in the 
     project so occupied bears to the total number of units in the 
     project does not exceed the ratio that the amount from non-
     Federal sources provided for the project pursuant to this 
     paragraph bears to the sum of the capital advances provided 
     for the project

[[Page S5244]]

     under this paragraph and all supplemental amounts for the 
     project provided pursuant to this paragraph.''.

     SEC. 302. ELIGIBILITY OF FOR-PROFIT LIMITED PARTNERSHIPS.

       Section 202(k)(4) of the Housing Act of 1959 (12 U.S.C. 
     1701q(k)(4)) is amended by inserting after subparagraph (C) 
     the following:
     ``Such term includes a for-profit limited partnership the 
     sole general partner of which is an organization meeting the 
     requirements under subparagraphs (A), (B), and (C), or a 
     corporation wholly owned and controlled by an organization 
     meeting the requirements under subparagraphs (A), (B), and 
     (C).''.

     SEC. 303. MIXED FUNDING SOURCES.

       Section 202(h)(6) of the Housing Act of 1959 (12 U.S.C. 
     1701q(h)(6)) is amended by striking ``non-Federal sources'' 
     and inserting ``sources other than this section''.

     SEC. 304. AUTHORITY TO ACQUIRE STRUCTURES.

       Section 202 of the Housing Act of 1959 (12 U.S.C. 1701q) is 
     amended--
       (1) in subsection (b), by striking ``from the Resolution 
     Trust Corporation''; and
       (2) in subsection (h)(2)--
       (A) in the paragraph heading, by striking ``RTC 
     properties'' and inserting ``Acquisition''; and
       (B) by striking ``from the Resolution'' and all that 
     follows through ``Insurance Act''.

     SEC. 305. MIXED-INCOME OCCUPANCY.

       (a) In General.--The first sentence of section 202(i)(1) of 
     the Housing Act of 1959 (12 U.S.C. 1701q(i)(1)) is amended by 
     striking ``and (B)'' and inserting the following: ``(B) 
     notwithstanding subparagraph (A) and in the case only of a 
     supportive housing project for the elderly that has a high 
     vacancy level (as defined by the Secretary, except that such 
     term shall not include vacancy upon the initial availability 
     of units in a building), consistent with the purpose of 
     improving housing opportunities for very low- and low-income 
     elderly persons; and (C).''.
       (b) Availability of Units.--Section 202(i) of the Housing 
     Act of 1959 (12 U.S.C. 1701q(i)) is amended by adding at the 
     end the following:
       ``(3) Availability of units.--In the case of a supportive 
     housing project described in paragraph (1)(B) that has a 
     vacant dwelling unit, an owner may not make a dwelling unit 
     available for occupancy by, nor make any commitment to 
     provide occupancy in the unit to--
       ``(A) a low-income family that is not a very low-income 
     family unless each eligible very low-income family that has 
     applied for occupancy in the project has been offered an 
     opportunity to accept occupancy in a unit in the project; and
       ``(B) a low-income elderly person who is not a very low-
     income elderly person, unless the owner certifies to the 
     Secretary that the owner has engaged in affirmative marketing 
     and outreach to very low-income elderly persons.''.
       (b) Conforming Amendments.--Section 202 of the Housing Act 
     of 1959 (12 U.S.C. 1701q) is amended--
       (1) in subsection (c)--
       (A) in paragraph (1), by inserting before ``in accordance 
     with this section'' the following: ``, and for low-income 
     elderly persons to the extent such occupancy is made 
     available pursuant to subsection (i)(1)(B),'';
       (B) in the first sentence of paragraph (2), by inserting 
     after ``elderly persons'' the following: ``or by low-income 
     elderly persons (to the extent such occupancy is made 
     available pursuant to subsection (i)(1)(B))''; and
       (C) in paragraph (3), by inserting after ``very low-income 
     person'' the following: ``or a low-income person (to the 
     extent such occupancy is made available pursuant to 
     subsection (i)(1)(B))'';
       (2) in subsection (d)(1), by inserting after ``elderly 
     persons'' the following: ``, and low-income elderly persons 
     to the extent such occupancy is made available pursuant to 
     subsection (i)(1)(B),''; and
       (3) in subsection (k)--
       (A) by redesignating paragraphs (3) through (8) as 
     paragraphs (4) through (9), respectively; and
       (B) by inserting after paragraph (2) the following:
       ``(3) Low-income.--The term `low-income' has the meaning 
     given the term `low-income families' under section 3(b)(2) of 
     the United States Housing Act of 1937 (42 U.S.C. 
     1437a(b)(2)).''.

     SEC. 306. USE OF PROJECT RESERVES.

       Section 202(j) of the Housing Act of 1959 (12 U.S.C. 
     1701q(j)) is amended by adding at the end the following:
       ``(8) Use of project reserves.--Amounts for project 
     reserves for a project assisted under this section may be 
     used for costs, subject to reasonable limitations as the 
     Secretary determines appropriate, for reducing the number of 
     dwelling units in the project. Such use shall be subject to 
     the approval of the Secretary to ensure that the use is 
     designed to retrofit units that are currently obsolete or 
     unmarketable.''.

     SEC. 307. COMMERCIAL ACTIVITIES.

       Section 202(h)(1) of the Housing Act of 1959 (12 U.S.C. 
     1701q(h)(1)) is amended by adding at the end the following: 
     ``Neither this section nor any other provision of law may be 
     construed as prohibiting or preventing the location and 
     operation, in a project assisted under this section, of 
     commercial facilities for the benefit of residents of the 
     project and the community in which the project is located, 
     except that assistance made available under this section may 
     not be used to subsidize any such commercial facility.''.

     SEC. 308. MIXED FINANCE PILOT PROGRAM.

       (a) Authority.--The Secretary shall carry out a pilot 
     program under this section to determine the effectiveness and 
     feasibility of providing assistance under section 202 of the 
     Housing Act of 1959 (12 U.S.C. 1701q) for housing projects 
     that are used both for supportive housing for the elderly and 
     for other types of housing, which may include market rate 
     housing.
       (b) Scope.--Under the pilot program the Secretary shall 
     provide, to the extent that sufficient approvable 
     applications for such assistance are received, assistance in 
     the manner provided under subsection (d) for not more than 5 
     housing projects.
       (c) Mixed Use.--The Secretary shall, for a project to be 
     assisted under the pilot program--
       (1) require that a minimum number of the dwelling units in 
     the project be reserved for use in accordance with, and 
     subject to, the requirements applicable to units assisted 
     under section 202 of the Housing Act of 1959, such that the 
     ratio that the number of dwelling units in the project so 
     reserved bears to the total number of units in the project is 
     not less than the ratio that the amount of assistance from 
     such section 202 used for the project pursuant to subsection 
     (d) bears to the total amount of assistance provided for the 
     project under this section; and
       (2) provide that the remainder of the dwelling units in the 
     project may be used for assistance to persons who are not 
     very low-income.
       (d) Financing.--The Secretary may use amounts provided for 
     assistance under section 202 of the Housing Act of 1959 for 
     assistance under the pilot program for capital advances in 
     accordance with subsection (c)(1) of such section and project 
     rental assistance in accordance with subsection (c)(2) of 
     such section, only for dwelling units described in subsection 
     (c)(1) of this section. Any assistance provided pursuant to 
     subsection (c)(1) of such section 202 shall be provided in 
     the form of a capital advance, subject to repayment as 
     provided in such subsection, and shall not be structured as a 
     loan. The Secretary shall take such action as may be 
     necessary to ensure that the repayment contingency under such 
     subsection is enforceable for projects assisted under the 
     pilot program and to provide for appropriate protections of 
     the interests of the Secretary in relation to other interests 
     in the projects so assisted.
       (e) Report.--Not later than 2 years after assistance is 
     initially made available under the pilot program under this 
     section, the Secretary shall submit to Congress a report on 
     the results of the pilot program.

     SEC. 309. GRANTS FOR CONVERSION OF ELDERLY HOUSING TO 
                   ASSISTED LIVING FACILITIES.

       Title II of the Housing Act of 1959 is amended by inserting 
     after section 202a (12 U.S.C. 1701q-1) the following:

     ``SEC. 202B. GRANTS FOR CONVERSION OF ELDERLY HOUSING TO 
                   ASSISTED LIVING FACILITIES.

       ``(a) Grant Authority.--The Secretary of Housing and Urban 
     Development may make grants in accordance with this section 
     to owners of eligible projects described in subsection (b) 
     for 1 or both of the following activities:
       ``(1) Repairs.--Substantial capital repairs to a project 
     that are needed to rehabilitate, modernize, or retrofit aging 
     structures, common areas, or individual dwelling units.
       ``(2) Conversion.--Activities designed to convert dwelling 
     units in the eligible project to assisted living facilities 
     for elderly persons.
       ``(b) Eligible Projects.--
       ``(1) In general.--An eligible project described in this 
     subsection is a multifamily housing project that is--
       ``(A) described in subparagraph (B), (C), (D), (E), (F), or 
     (G) of section 683(2) of the Housing and Community 
     Development Act of 1992 (42 U.S.C. 13641(2)), or (B) only to 
     the extent amounts of the Department of Agriculture are made 
     available to the Secretary of Housing and Urban Development 
     for such grants under this section for such projects, subject 
     to a loan made or insured under section 515 of the Housing 
     Act of 1949 (42 U.S.C. 1485);
       ``(B) owned by a private nonprofit organization (as such 
     term is defined in section 202); and
       ``(C) designated primarily for occupancy by elderly 
     persons.
       ``(2) Unused or underutilized commercial property.--
     Notwithstanding any other provision of this subsection or 
     this section, an unused or underutilized commercial property 
     may be considered an eligible project under this subsection, 
     except that the Secretary may not provide grants under this 
     section for more than 3 such properties. For any such 
     projects, any reference under this section to dwelling units 
     shall be considered to refer to the premises of such 
     properties.
       ``(c) Applications.--Applications for grants under this 
     section shall be submitted to the Secretary in accordance 
     with such procedures as the Secretary shall establish. Such 
     applications shall contain--
       ``(1) a description of the substantial capital repairs or 
     the proposed conversion activities for which a grant under 
     this section is requested;
       ``(2) the amount of the grant requested to complete the 
     substantial capital repairs or conversion activities;
       ``(3) a description of the resources that are expected to 
     be made available, if any, in conjunction with the grant 
     under this section; and

[[Page S5245]]

       ``(4) such other information or certifications that the 
     Secretary determines to be necessary or appropriate.
       ``(d) Funding for Services.--The Secretary may not make a 
     grant under this section for conversion activities unless the 
     application 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, which may be provided by third parties.
       ``(e) Selection Criteria.--The Secretary shall select 
     applications for grants under this section based upon 
     selection criteria, which shall be established by the 
     Secretary and shall include--
       ``(1) in the case of a grant for substantial capital 
     repairs, the extent to which the project to be repaired is in 
     need of such repair, including such factors as the age of 
     improvements to be repaired, and the impact on the health and 
     safety of residents of failure to make such repairs;
       ``(2) in the case of a grant for conversion activities, the 
     extent to which the conversion is likely to provide assisted 
     living facilities that are needed or are expected to be 
     needed by the categories of elderly persons that the assisted 
     living facility is intended to serve, with a special emphasis 
     on very low-income elderly persons who need assistance with 
     activities of daily living;
       ``(3) the inability of the applicant to fund the repairs or 
     conversion activities from existing financial resources, as 
     evidenced by the applicant's financial records, including 
     assets in the applicant's residual receipts account and 
     reserves for replacement account;
       ``(4) the extent to which the applicant has evidenced 
     community support for the repairs or conversion, by such 
     indicators as letters of support from the local community for 
     the repairs or conversion and financial contributions from 
     public and private sources;
       ``(5) in the case of a grant for conversion activities, the 
     extent to which the applicant demonstrates a strong 
     commitment to promoting the autonomy and independence of the 
     elderly persons that the assisted living facility is intended 
     to serve;
       ``(6) in the case of a grant for conversion activities, the 
     quality, completeness, and managerial capability of providing 
     the services which the assisted living facility intends to 
     provide to elderly residents, especially in such areas as 
     meals, 24-hour staffing, and on-site health care; and
       ``(7) such other criteria as the Secretary determines to be 
     appropriate to ensure that funds made available under this 
     section are used effectively.
       ``(f) Definitions.--In this section--
       ``(1) the term `assisted living facility' has the meaning 
     given such term in section 232(b) of the National Housing Act 
     (12 U.S.C. 1715w(b)); and
       ``(2) the definitions in section 202(k) shall apply.
       ``(g) Authorization of Appropriations.--There is authorized 
     to be appropriated for providing grants under this section 
     such sums as may be necessary for each of fiscal years 2001, 
     2002, 2003, and 2004.''.

     SEC. 310. GRANTS FOR CONVERSION OF PUBLIC HOUSING PROJECTS TO 
                   ASSISTED LIVING FACILITIES.

       Title I of the United States Housing Act of 1937 (42 U.S.C. 
     1437 et seq.) is amended by adding at the end the following:

     ``SEC. 36. GRANTS FOR CONVERSION OF PUBLIC HOUSING TO 
                   ASSISTED LIVING FACILITIES.

       ``(a) Grant Authority.--The Secretary may make grants in 
     accordance with this section to public housing agencies for 
     use for activities designed to convert dwelling units in an 
     eligible projects described in subsection (b) to assisted 
     living facilities for elderly persons.
       ``(b) Eligible Projects.--An eligible project described in 
     this subsection is a public housing project (or a portion 
     thereof) that has been designated under section 7 for 
     occupancy only by elderly persons.
       ``(c) Applications.--Applications for grants under this 
     section shall be submitted to the Secretary in accordance 
     with such procedures as the Secretary shall establish. Such 
     applications shall contain--
       ``(1) a description of the proposed conversion activities 
     for which a grant under this section is requested;
       ``(2) the amount of the grant requested;
       ``(3) a description of the resources that are expected to 
     be made available, if any, in conjunction with the grant 
     under this section; and
       ``(4) such other information or certifications that the 
     Secretary determines to be necessary or appropriate.
       ``(d) Funding for Services.--The Secretary may not make a 
     grant under this section unless the application 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.
       ``(e) Selection Criteria.--The Secretary shall select 
     applications for grants under this section based upon 
     selection criteria, which shall be established by the 
     Secretary and shall include--
       ``(1) the extent to which the conversion is likely to 
     provide assisted living facilities that are needed or are 
     expected to be needed by the categories of elderly persons 
     that the assisted living facility is intended to serve;
       ``(2) the inability of the public housing agency to fund 
     the conversion activities from existing financial resources, 
     as evidenced by the agency's financial records;
       ``(3) the extent to which the agency has evidenced 
     community support for the conversion, by such indicators as 
     letters of support from the local community for the 
     conversion and financial contributions from public and 
     private sources;
       ``(4) extent to which the applicant demonstrates a strong 
     commitment to promoting the autonomy and independence of the 
     elderly persons that the assisted living facility is intended 
     to serve;
       ``(5) the quality, completeness, and managerial capability 
     of providing the services which the assisted living facility 
     intends to provide to elderly residents, especially in such 
     areas as meals, 24-hour staffing, and on-site health care; 
     and
       ``(6) such other criteria as the Secretary determines to be 
     appropriate to ensure that funds made available under this 
     section are used effectively.
       ``(f) Definition.--In this section, the term `assisted 
     living facility' has the meaning given such term in section 
     232(b) of the National Housing Act (12 U.S.C. 1715w(b)).
       ``(g) Authorization of Appropriations.--There is authorized 
     to be appropriated for providing grants under this section 
     such sums as may be necessary for each of fiscal years 2001, 
     2002, 2003, and 2004.''.

     SEC. 311. ANNUAL HUD INVENTORY OF ASSISTED HOUSING DESIGNATED 
                   FOR ELDERLY PERSONS.

       Subtitle D of title VI of the Housing and Community 
     Development Act of 1992 (42 U.S.C. 13611 et seq.) is amended 
     by adding at the end the following:

     ``SEC. 662. ANNUAL INVENTORY OF ASSISTED HOUSING DESIGNATED 
                   FOR ELDERLY PERSONS.

       ``(a) In General.--The Secretary shall establish and 
     maintain, and on an annual basis shall update and publish, an 
     inventory of housing that--
       ``(1) is assisted under a program of the Department of 
     Housing and Urban Development, including all federally 
     assisted housing; and
       ``(2) is designated, in whole or in part, for occupancy by 
     elderly families or disabled families, or both.
       ``(b) Contents.--The inventory required under this section 
     shall identify housing described in subsection (a) and the 
     number of dwelling units in such housing that--
       ``(1) are in projects designated for occupancy only by 
     elderly families;
       ``(2) are in projects designated for occupancy only by 
     disabled families;
       ``(3) contain special features or modifications designed to 
     accommodate persons with disabilities and are in projects 
     designated for occupancy only by disabled families;
       ``(4) are in projects for which a specific percentage or 
     number of the dwelling units are designated for occupancy 
     only by elderly families;
       ``(5) are in projects for which a specific percentage or 
     number of the dwelling units are designated for occupancy 
     only by disabled families; and
       ``(6) are in projects designed for occupancy only by both 
     elderly or disabled families.
       ``(c) Publication.--The Secretary shall annually publish 
     the inventory required under this section in the Federal 
     Register and shall make the inventory available to the public 
     by posting on a World Wide Web site of the Department.''.

     SEC. 312. TREATMENT OF APPLICATIONS.

       Notwithstanding any other provision of law or any 
     regulation of the Secretary, in the case of any denial of an 
     application for assistance under section 202 of the Housing 
     Act of 1959 (12 U.S.C. 1701q) for failure to timely provide 
     information required by the Secretary, the Secretary shall 
     notify the applicant of the failure and provide the applicant 
     an opportunity to show that the failure was due to the 
     failure of a third party to provide information under the 
     control of the third party. If the applicant demonstrates, 
     within a reasonable period of time after notification of such 
     failure, that the applicant did not have such information but 
     requested the timely provision of such information by the 
     third party, the Secretary may not deny the application 
     solely on the grounds of failure to timely provide such 
     information.

           Subtitle B--Housing for Persons With Disabilities

     SEC. 321. MATCHING GRANT PROGRAM.

       Section 811 of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 8013) is amended--
       (1) in subsection (b)(2)(A), by inserting ``or through 
     matching grants under subsection (d)(5)'' after ``subsection 
     (d)(1)''; and
       (2) in subsection (d), by adding at the end the following:
       ``(5) Matching grants.--
       ``(A) In general.--
       ``(i) 15 percent minimum.--Amounts made available for 
     assistance under this paragraph shall be used only for 
     capital advances in accordance with paragraph (1), except 
     that the Secretary shall require that, as a condition of 
     providing assistance under this paragraph for a project, the 
     applicant for assistance shall supplement the assistance with 
     amounts from sources other than this section in an amount 
     that is not less than 15 percent of the amount of assistance 
     provided pursuant to this paragraph for the project.
       ``(ii) Preference.--In providing assistance under this 
     paragraph, the Secretary shall take into consideration the 
     degree to which the applicant will supplement that assistance 
     with amounts from sources other than this section and, all 
     other factors being equal, shall give preference to 
     applicants whose supplemental assistance is equal to

[[Page S5246]]

     the highest percentage of the amount of assistance provided 
     pursuant to this paragraph for the project.
       ``(B) Requirement for non-federal funds.--Not less than 50 
     percent of supplemental amounts provided for a project 
     pursuant to subparagraph (A) shall be from non-Federal 
     sources. Such supplemental amounts may include the value of 
     any in-kind contributions, including donated land, 
     structures, equipment, and other contributions as the 
     Secretary considers appropriate, but only if the existence of 
     such in-kind contributions results in the construction of 
     more dwelling units than would have been constructed absent 
     such contributions.
       ``(C) Income eligibility.--Notwithstanding any other 
     provision of this section, the Secretary shall provide that, 
     in a project assisted under this paragraph, a number of 
     dwelling units may be made available for occupancy by persons 
     with disabilities who are not very low-income persons in a 
     number such that the ration that the number of dwelling units 
     in the project so occupied bears to the total number of units 
     in the project does not exceed the ratio that the amount from 
     non-Federal sources provided for the project pursuant to this 
     paragraph bears to the sum of the capital advances provided 
     for the project under this paragraph and all supplemental 
     amounts for the project provided pursuant to this 
     paragraph.''.

     SEC. 322. ELIGIBILITY OF FOR-PROFIT LIMITED PARTNERSHIPS.

       Section 811(k)(6) of the Housing Act of 1959 (42 U.S.C. 
     8013(k)(6)) is amended by inserting after subparagraph (D) 
     the following:
     ``Such term includes a for-profit limited partnership the 
     sole general partner of which is an organization meeting the 
     requirements under subparagraphs (A), (B), (C), and (D) or a 
     corporation wholly owned and controlled by an organization 
     meeting the requirements under subparagraphs (A), (B), (C), 
     and (D).''.

     SEC. 323. MIXED FUNDING SOURCES.

       Section 811(h)(5) of the Cranston-Gonzalez National 
     Affordable Housing Act (42 U.S.C. 8013(h)(5)) is amended by 
     striking ``non-Federal sources'' and inserting ``sources 
     other than this section''.

     SEC. 324. TENANT-BASED ASSISTANCE.

       Section 811 of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 8013) is amended--
       (1) in subsection (d), by striking paragraph (4) and 
     inserting the following:
       ``(4) Tenant-based rental assistance.--
       ``(A) Administering entities.--Tenant-based rental 
     assistance provided under subsection (b)(1) may be provided 
     only through a public housing agency that has submitted and 
     had approved an plan under section 7(d) of the United States 
     Housing Act of 1937 (42 U.S.C. 1437e(d)) that provides for 
     such assistance, or through a private nonprofit organization. 
     A public housing agency shall be eligible to apply under this 
     section only for the purposes of providing such tenant-based 
     rental assistance.
       ``(B) Program rules.--Tenant-based rental assistance under 
     subsection (b)(1) shall be made available to eligible persons 
     with disabilities and administered under the same rules that 
     govern tenant-based rental assistance made available under 
     section 8 of the United States Housing Act of 1937, except 
     that the Secretary may waive or modify such rules, but only 
     to the extent necessary to provide for administering such 
     assistance under subsection (b)(1) through private nonprofit 
     organizations rather than through public housing agencies.
       ``(C) Allocation of assistance.--In determining the amount 
     of assistance provided under subsection (b)(1) for a private 
     nonprofit organization or public housing agency, the 
     Secretary shall consider the needs and capabilities of the 
     organization or agency, in the case of a public housing 
     agency, as described in the plan for the agency under section 
     7 of the United States Housing Act of 1937.''; and
       (2) in subsection (l)(1)--
       (A) by striking ``subsection (b)'' and inserting 
     ``subsection (b)(2)'';
       (B) by striking the last comma and all that follows through 
     ``subsection (n)''; and
       (C) by adding at the end the following: ``Notwithstanding 
     any other provision of this section, the Secretary may use 
     not more than 25 percent of the total amounts made available 
     for assistance under this section for any fiscal year for 
     tenant-based rental assistance under subsection (b)(1) for 
     persons with disabilities, and no authority of the Secretary 
     to waive provisions of this section may be used to alter the 
     percentage limitation under this sentence.''.

     SEC. 325. USE OF PROJECT RESERVES.

       Section 811(j) of the Cranston-Gonzalez National Affordable 
     Housing Act (42 U.S.C. 8013(j)) is amended by adding at the 
     end the following:
       ``(7) Use of project reserves.--Amounts for project 
     reserves for a project assisted under this section may be 
     used for costs, subject to reasonable limitations as the 
     Secretary determines appropriate, for reducing the number of 
     dwelling units in the project. Such use shall be subject to 
     the approval of the Secretary to ensure that the use is 
     designed to retrofit units that are currently obsolete or 
     unmarketable.''.

     SEC. 326. COMMERCIAL ACTIVITIES.

       Section 811(h)(1) of the Cranston-Gonzalez National 
     Affordable Housing Act (42 U.S.C. 8013(h)(1)) is amended by 
     adding at the end the following: ``Neither this section nor 
     any other provision of law may be construed as prohibiting or 
     preventing the location and operation, in a project assisted 
     under this section, of commercial facilities for the benefit 
     of residents of the project and the community in which the 
     project is located, except that assistance made available 
     under this section may not be used to subsidize any such 
     commercial facility.''.

                      Subtitle C--Other Provisions

     SEC. 341. SERVICE COORDINATORS.

       (a) Increased Flexibility for Use of Service Coordinators 
     in Certain Federally Assisted Housing.--Section 676 of the 
     Housing and Community Development Act of 1992 (42 U.S.C. 
     13632) is amended--
       (1) in the section heading, by striking ``MULTIFAMILY 
     HOUSING ASSISTED UNDER NATIONAL HOUSING ACT'' and inserting 
     ``CERTAIN FEDERALLY ASSISTED HOUSING'';
       (2) in subsection (a)--
       (A) in the first sentence, by striking ``(E) and (F)'' and 
     inserting ``(B), (C), (D), (E), (F), and (G)''; and
       (B) in the last sentence--
       (i) by striking ``section 661'' and inserting ``section 
     671''; and
       (ii) by adding at the end the following: ``A service 
     coordinator funded with a grant under this section for a 
     project may provide services to low-income elderly or 
     disabled families living in the vicinity of such project.'';
       (3) in subsection (d)--
       (A) by striking ``(E) or (F)'' and inserting ``(B), (C), 
     (D), (E), (F), or (G)''; and
       (B) by striking ``section 661'' and inserting ``section 
     671''; and
       (4) by striking subsection (c) and redesignating subsection 
     (d) (as amended by paragraph (3) of this subsection) as 
     subsection (c).
       (b) Requirement To Provide Service Coordinators.--Section 
     671 of the Housing and Community Development Act of 1992 (42 
     U.S.C. 13631) is amended--
       (1) in the first sentence of subsection (a), by striking 
     ``to carry out this subtitle pursuant to the amendments made 
     by this subtitle'' and inserting the following: ``for 
     providing service coordinators under this section'';
       (2) in subsection (d), by inserting ``)'' after ``section 
     683(2)''; and
       (3) by adding at the end following:
       ``(e) Services for Low-Income Elderly or Disabled Families 
     Residing in Vicinity of Certain Projects.--To the extent only 
     that this section applies to service coordinators for covered 
     federally assisted housing described in subparagraphs (B), 
     (C), (D), (E), (F), and (G) of section 683(2), any reference 
     in this section to elderly or disabled residents of a project 
     shall be construed to include low-income elderly or disabled 
     families living in the vicinity of such project.''.
       (c) Protection Against Telemarketing Fraud.--
       (1) Supportive housing for the elderly.--The first sentence 
     of section 202(g)(1) of the Housing Act of 1959 (12 U.S.C. 
     1701q(g)(1)) is amended by striking ``and (F)'' and inserting 
     the following: ``(F) providing education and outreach 
     regarding telemarketing fraud, in accordance with the 
     standards issued under section 671(f) of the Housing and 
     Community Development Act of 1992 (42 U.S.C. 13631(f)); and 
     (G)''.
       (2) Other federally assisted housing.--Section 671 of the 
     Housing and Community Development Act of 1992 (42 U.S.C. 
     13631), as amended by subsection (b) of this section, is 
     further amended--
       (A) in the first sentence of subsection (c), by inserting 
     after ``response,'' the following: ``education and outreach 
     regarding telemarketing fraud in accordance with the 
     standards issued under subsection (f),''; and
       (B) by adding at the end the following:
       ``(f) Protection Against Telemarketing Fraud.--
       ``(1) In general.--The Secretary, in coordination with the 
     Secretary of Health and Human Services, shall establish 
     standards for service coordinators in federally assisted 
     housing who are providing education and outreach to elderly 
     persons residing in such housing regarding telemarketing 
     fraud. The standards shall be designed to ensure that such 
     education and outreach informs such elderly persons of the 
     dangers of telemarketing fraud and facilitates the 
     investigation and prosecution of telemarketers engaging in 
     fraud against such residents.
       ``(2) Contents.--The standards established under this 
     subsection shall require that any such education and outreach 
     be provided in a manner that--
       ``(A) informs such residents of--
       ``(i) the prevalence of telemarketing fraud targeted 
     against elderly persons;
       ``(ii) how telemarketing fraud works;
       ``(iii) how to identify telemarketing fraud;
       ``(iv) how to protect themselves against telemarketing 
     fraud, including an explanation of the dangers of providing 
     bank account, credit card, or other financial or personal 
     information over the telephone to unsolicited callers;
       ``(v) how to report suspected attempts at telemarketing 
     fraud; and
       ``(vi) their consumer protection rights under Federal law;
       ``(B) provides such other information as the Secretary 
     considers necessary to protect such residents against 
     fraudulent telemarketing; and
       ``(C) disseminates the information provided by appropriate 
     means, and in determining such appropriate means, the 
     Secretary shall consider on-site presentations at federally

[[Page S5247]]

     assisted housing, public service announcements, a printed 
     manual or pamphlet, an Internet website, and telephone 
     outreach to residents whose names appear on `mooch lists' 
     confiscated from fraudulent telemarketers.''.

           TITLE IV--PRESERVATION OF AFFORDABLE HOUSING STOCK

     SEC. 401. MATCHING GRANT PROGRAM FOR AFFORDABLE HOUSING 
                   PRESERVATION.

       (a) Findings and Purposes.--
       (1) Findings.--Congress finds that--
       (A) availability of low-income housing rental units has 
     declined nationwide in the last several years;
       (B) as rents for low-income housing increase and the 
     development of new units of affordable housing decreases, 
     there are fewer privately owned, federally assisted 
     affordable housing units available to low-income individuals 
     in need;
       (C) the demand for affordable housing far exceeds the 
     supply of such housing, as evidenced by recent studies; and
       (D) the efforts of nonprofit organizations have 
     significantly preserved and expanded access to low-income 
     housing.
       (2) Purposes.--The purposes of this section are--
       (A) to continue the partnerships among the Federal 
     Government, State and local governments, nonprofit 
     organizations, and the private sector in operating and 
     assisting housing that is affordable to low-income persons 
     and families;
       (B) to promote the preservation of affordable housing units 
     by providing matching grants to States and localities that 
     have developed and funded programs for the preservation of 
     privately owned housing that is affordable to low-income 
     families and persons; and
       (C) to minimize the involuntary displacement of tenants who 
     are currently residing in such housing, many of whom are 
     elderly or disabled persons and families with children.
       (b) Definitions.--In this section:
       (1) Capital expenditures.--The term ``capital 
     expenditures'' includes expenditures for acquisition and 
     rehabilitation.
       (2) Low-income affordability restrictions.--The term ``low-
     income affordability restrictions'' means, with respect to a 
     housing project, any limitations imposed by law, regulation, 
     or regulatory agreement on rents for tenants of the project, 
     rent contributions for tenants of the project, or income-
     eligibility for occupancy in the project.
       (3) Project-based assistance.--The term ``project-based 
     assistance'' has the meaning given such term in section 16(c) 
     of the United States Housing Act of 1937 (42 U.S.C. 
     1437n(c)), except that such term includes assistance under 
     any successor programs to the programs referred to in such 
     section.
       (4) Secretary.--The term ``Secretary'' means the Secretary 
     of Housing and Urban Development.
       (5) State.--The term ``State'' means each of the several 
     States and the District of Columbia.
       (c) Authority.--The Secretary shall, to the extent amounts 
     are made available in advance under subsection (k), award 
     grants under this section to States and localities for low-
     income housing preservation and promotion.
       (d) Applications.--The Secretary shall provide for States 
     and localities (through appropriate State and local agencies) 
     to submit applications for grants under this section. The 
     Secretary shall require the applications to contain any 
     information and certifications necessary for the Secretary to 
     determine who is eligible to receive such a grant.
       (e) Use of Grants.--
       (1) Eligible uses.--
       (A) In general.--Amounts from grants awarded under this 
     section may be used by States and localities only for the 
     purpose of providing assistance for acquisition, 
     rehabilitation, operating costs, and capital expenditures for 
     a housing project that meets the requirements under paragraph 
     (2), (3), (4), or (5).
       (B) Factors for consideration.--In selecting projects 
     described in subparagraph (A) for assistance with amounts 
     from a grant awarded under this section, the State or 
     locality shall--
       (i) take into consideration--

       (I) whether the assistance will be used to transfer the 
     project to a resident-endorsed nonprofit organization;
       (II) whether the owner of the project has extended the low-
     income affordability restrictions on the project for a period 
     of more than 15 years;
       (III) the extent to which the project is consistent with 
     the comprehensive housing affordability strategy approved in 
     accordance with section 105 of the Cranston-Gonzalez National 
     Affordable Housing Act (42 U.S.C. 12705) for the jurisdiction 
     in which the project is located;
       (IV) the extent to which the project location provides 
     access to transportation, jobs, shopping, and other similar 
     conveniences;
       (V) the extent to which the project meets fair housing 
     goals;
       (VI) the extent to which the project serves specific needs 
     that are not otherwise met by the local market, such as 
     housing for the elderly or disabled, or families with 
     children;
       (VII) the extent of local government resources provided to 
     the project; and
       (VIII) such other factors as the Secretary or the State or 
     locality may establish; and

       (ii) States receiving funds shall ensure that, to the 
     maximum extent practicable, projects in both urban and rural 
     areas in the State receive assistance.
       (2) Projects with hud-insured mortgages.--A project meets 
     the requirements under this paragraph only if--
       (A) the project is financed by a loan or mortgage that is--
       (i) insured or held by the Secretary under section 
     221(d)(3) of the National Housing Act (12 U.S.C. 1715l(d)(3)) 
     and receiving loan management assistance under section 8 of 
     the United States Housing Act of 1937 (42 U.S.C. 1437f) due 
     to a conversion from section 101 of the Housing and Urban 
     Development Act of 1965 (12 U.S.C. 1701s);
       (ii) insured or held by the Secretary and bears interest at 
     a rate determined under the proviso of section 221(d)(5) of 
     the National Housing Act (12 U.S.C. 1715l(d)(5)); or
       (iii) insured, assisted, or held by the Secretary or a 
     State or State agency under section 236 of the National 
     Housing Act (12 U.S.C. 1715z-1);
       (B) the project is subject to an unconditional waiver of, 
     with respect to the mortgage referred to in subparagraph 
     (A)--
       (i) all rights to any prepayment of the mortgage; and
       (ii) all rights to any voluntary termination of the 
     mortgage insurance contract for the mortgage; and
       (C) if the low-income affordability restrictions on the 
     project are for less than 15 years, the owner of the project 
     has entered into binding commitments (applicable to any 
     subsequent owner) to extend those restrictions, including any 
     such restrictions imposed because of any contract for 
     project-based assistance for the project, for a period of not 
     less than 15 years (beginning on the date on which assistance 
     is made available for the project by the State or locality 
     under this section).
       (3) Projects with section 8 project-based assistance.--A 
     project meets the requirements under this paragraph only if--
       (A) the project is subject to a contract for project-based 
     assistance; and
       (B) the owner of the project has entered into binding 
     commitments (applicable to any subsequent owner)--
       (i) to continue to renew such contract (if offered on the 
     same terms and conditions) until the later of--

       (I) the last day of the remaining term of the mortgage; or
       (II) the date that is 15 years after the date on which 
     assistance is made available for the project by the State or 
     locality under this subsection; and

       (ii) to extend any low-income affordability restrictions 
     applicable to the project in connection with such assistance.
       (4) Projects purchased by residents.--A project meets the 
     requirements under this paragraph only if the project--
       (A) is or was eligible low-income housing (as defined in 
     section 229 of the Low-Income Housing Preservation and 
     Resident Homeownership Act of 1990 (42 U.S.C. 4119)) or is or 
     was a project assisted under section 613(b) of the Cranston-
     Gonzalez National Affordable Housing Act (12 U.S.C. 4125(b));
       (B) has been purchased by a resident council or resident-
     approved nonprofit organization for the housing or is 
     approved by the Secretary for such purchase, for conversion 
     to homeownership housing under a resident homeownership 
     program meeting the requirements under section 226 of such 
     Act (12 U.S.C. 4116); and
       (C) the owner of the project has entered into binding 
     commitments (applicable to any subsequent owner) to extend 
     such assistance for not less than 15 years (beginning on the 
     date on which assistance is made available for the project by 
     the State or locality under this section) and to extend any 
     low-income affordability restrictions applicable to the 
     project in connection with such assistance.
       (5) Rural rental assistance projects.--A project meets the 
     requirements of this paragraph only if--
       (A) the project is a rural rental housing project financed 
     under section 515 of the Housing Act of 1949 (42 U.S.C. 
     1485); and
       (B) the restriction on the use of the project (as required 
     under section 502 of the Housing Act of 1949 (42 U.S.C. 
     1472)) will expire not later than 12 months after the date on 
     which assistance is made available for the project by the 
     State or locality under this subsection.
       (f) Amount of State and Local Grants.--
       (1) In general.--Subject to subsection (g), in each fiscal 
     year, the Secretary shall award to each State and locality 
     approved for a grant under this section a grant in an amount 
     based upon the proportion of such State's or locality's need 
     for assistance under this section (as determined by the 
     Secretary in accordance with paragraph (2)) to the aggregate 
     need among all States and localities approved for such 
     assistance for such fiscal year.
       (2) Determination of need.--In determining the proportion 
     of a State's or locality's need under paragraph (1), the 
     Secretary shall consider--
       (A) the number of units in projects in the State or 
     locality that are eligible for assistance under section 6 
     that, due to market conditions or other factors, are at risk 
     for prepayment, opt-out, or otherwise at risk of being lost 
     to the inventory of affordable housing; and
       (B) the difficulty that residents of projects in the State 
     or locality that are eligible for assistance under subsection 
     (e) would face in

[[Page S5248]]

     finding adequate, available, decent, comparable, and 
     affordable housing in neighborhoods of comparable quality in 
     the local market, if those projects were not assisted by the 
     State or locality under subsection (e).
       (g) Matching Requirement.--
       (1) In general.--The Secretary may not award a grant under 
     this section to a State or locality for any fiscal year in an 
     amount that exceeds twice the amount that the State or 
     locality certifies, as the Secretary shall require, that the 
     State or locality will contribute for such fiscal year, or 
     has contributed since January 1, 2000, from non-Federal 
     sources for the purposes described in subsection (e)(1).
       (2) Treatment of previous contributions.--Any portion of 
     amounts contributed after January 1, 2000, that are counted 
     for purposes of meeting the requirement under paragraph (1) 
     for a fiscal year may not be counted for such purposes for 
     any subsequent fiscal year.
       (3) Treatment of tax incentives.--Fifty percent of the 
     funds used for the project that are allocable to tax credits 
     allocated under section 42 of the Internal Revenue Code of 
     1986, revenue from mortgage revenue bonds issued under 
     section 143 of such Code, or proceeds from the sale of tax-
     exempt bonds by any State or local government entity shall be 
     considered non-Federal sources for purposes of this 
     subsection.
       (h) Treatment of Subsidy Layering Requirements.--Neither 
     subsection (g) nor any other provision of this section may be 
     construed to prevent the use of tax credits allocated under 
     section 42 of the Internal Revenue Code of 1986 in connection 
     with housing assisted with amounts from a grant awarded under 
     this section, to the extent that such use is in accordance 
     with section 102(d) of the Department of Housing and Urban 
     Development Reform Act of 1989 (42 U.S.C. 3545(d)) and 
     section 911 of the Housing and Community Development Act of 
     1992 (42 U.S.C. 3545 note).
       (i) Reports.--
       (1) Reports to secretary.--Not later than 90 days after the 
     last day of each fiscal year, each State and locality that 
     receives a grant under this section during that fiscal year 
     shall submit to the Secretary a report on the housing 
     projects assisted with amounts made available under the 
     grant.
       (2) Reports to congress.--Based on the reports submitted 
     under paragraph (1), the Secretary shall annually submit to 
     Congress a report on the grants awarded under this section 
     during the preceding fiscal year and the housing projects 
     assisted with amounts made available under those grants.
       (j) Regulations.--Not later than 12 months after the date 
     of enactment of this Act, the Secretary shall issue 
     regulations to carry out this section.
       (k) Authorization of Appropriations.--There is authorized 
     to be appropriated for grants under this section such sums as 
     may be necessary for each of fiscal years 2001 through 2004.

     SEC. 402. ASSISTANCE FOR NONPROFIT PURCHASERS PRESERVING 
                   AFFORDABLE HOUSING.

       (a) Congressional Findings.--Congress finds that--
       (1) a substantial number of existing federally assisted or 
     federally insured multifamily properties are at risk of being 
     lost from the affordable housing inventory of the Nation 
     through market rate conversion, deterioration, or demolition;
       (2) it is in the interests of the Nation to encourage 
     transfer of control of such properties to competent national, 
     regional, and local nonprofit entities and intermediaries 
     whose missions involve maintaining the affordability of such 
     properties;
       (3) such transfers may be inhibited by a shortage of such 
     entities that are appropriately capitalized; and
       (4) the Nation would be well served by providing assistance 
     to such entities to aid in accomplishing this purpose.
       (b) Grants.--The Secretary may make grants, to the extent 
     amounts are made available for such grants, to eligible 
     entities under subsection (c) for use only for operational, 
     working capital, and organizational expenses of such entities 
     and activities by such entities to acquire eligible 
     affordable housing for the purpose of ensuring that the 
     housing will remain affordable, as the Secretary considers 
     appropriate, for low-income or very low-income families 
     (including elderly persons).
       (c) Eligible Entities.--The Secretary shall establish 
     standards for eligible entities under this subsection, which 
     shall include requirements that to be considered an eligible 
     entity for purposes of this section an entity shall--
       (1) be a nonprofit organization (as such term is defined in 
     104 of the Cranston-Gonzalez National Affordable Housing 
     Act);
       (2) have among its purposes maintaining the affordability 
     to low-income or very low-income families of multifamily 
     properties that are at risk of loss from the inventory of 
     housing that is affordable to low-income or very low-income 
     families; and
       (3) demonstrate need for assistance under this section for 
     the purposes under subsection (b), experience in carrying out 
     activities referred to in such subsection, and capability to 
     carry out such activities.
       (d) Definitions.--In this section:
       (1) Eligible affordable housing.--The term ``eligible 
     affordable housing'' means housing that--
       (A) consists of more than four dwelling units;
       (B) is insured or assisted under a program of the 
     Department of Housing and Urban Development or the Department 
     of Agriculture under which the property is subject to 
     limitations on tenant rents, rent contributions, or incomes; 
     and
       (C) is at risk, as determined by the Secretary, of 
     termination of any of the limitations referred to in 
     subparagraph (B).
       (2) Low-income families; very low-income families.--The 
     terms ``low-income families'' and very low-income families'' 
     have the meanings given such terms in section 3(b) of the 
     United States Housing Act of 1937.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated for grants under this section such sums as 
     may be necessary for each of fiscal years 2001, 2002, 2003, 
     and 2004.

     SEC. 403. SECTION 236 ASSISTANCE.

       Section 236(g) of the National Housing Act (12 U.S.C. 
     1715z-1(g)) is amended--
       (1) in paragraph (2), by striking ``Subject to paragraph 
     (3) and notwithstanding'' and inserting ``Notwithstanding''; 
     and
       (2) by striking paragraph (3) and redesignating paragraph 
     (4) as paragraph (3).

     SEC. 404. PRESERVATION PROJECTS.

       Section 524(e)(1) of the Multifamily Assisted Housing 
     Reform and Affordability Act of 1997 (42 U.S.C. 1437f note) 
     is amended by striking ``amounts are specifically'' and 
     inserting ``sufficient amounts are''.

TITLE V--MORTGAGE INSURANCE FOR HEALTH CARE FACILITIES AND HOME EQUITY 
                          CONVERSION MORTGAGES

     SEC. 501. REHABILITATION OF EXISTING HOSPITALS, NURSING 
                   HOMES, AND OTHER FACILITIES.

       Section 223(f) of the National Housing Act (12 U.S.C. 
     1715n(f)) is amended--
       (1) in paragraph (1)--
       (A) by striking ``the refinancing of existing debt of an''; 
     and
       (B) by inserting ``existing integrated service facility,'' 
     after ``existing board and care home,'';
       (2) in paragraph (4)--
       (A) by inserting ``existing integrated service facility,'' 
     after ``board and care home,'' each place it appears;
       (B) in subparagraph (A), by inserting before the semicolon 
     at the end the following: ``, which refinancing, in the case 
     of a loan on a hospital, home, or facility that is within 2 
     years of maturity, shall include a mortgage made to prepay 
     such loan'';
       (C) in subparagraph (B), by inserting after 
     ``indebtedness'' the following: ``, pay any other costs 
     including repairs, maintenance, minor improvements, or 
     additional equipment which may be approved by the 
     Secretary,''; and
       (D) in subparagraph (D)--
       (i) by inserting ``existing'' before ``intermediate care 
     facility''; and
       (ii) by inserting ``existing'' before ``board and care 
     home''; and
       (3) by adding at the end the following:
       ``(6) In the case of purchase of an existing hospital (or 
     existing nursing home, existing assisted living facility, 
     existing intermediate care facility, existing board and care 
     home, existing integrated service facility or any combination 
     thereof) the Secretary shall prescribe such terms and 
     conditions as the Secretary deems necessary to assure that--
       ``(A) the proceeds of the insured mortgage loan will be 
     employed only for the purchase of the existing hospital (or 
     existing nursing home, existing assisted living facility, 
     existing intermediate care facility, existing board and care 
     home, existing integrated service facility or any combination 
     thereof) including the retirement of existing debt (if any), 
     necessary costs associated with the purchase and the insured 
     mortgage financing, and such other costs, including costs of 
     repairs, maintenance, improvements, and additional equipment, 
     as may be approved by the Secretary;
       ``(B) such existing hospital (or existing nursing home, 
     existing assisted living facility, existing intermediate care 
     facility, existing board and care home, existing integrated 
     service facility, or any combination thereof) is economically 
     viable; and
       ``(C) the applicable requirements for certificates, 
     studies, and statements of section 232 (for the existing 
     nursing home, existing assisted living facility, intermediate 
     care facility, board and care home, existing integrated 
     service facility or any combination thereof, proposed to be 
     purchased) or of section 242 (for the existing hospital 
     proposed to be purchased) have been met.''.

     SEC. 502. NEW INTEGRATED SERVICE FACILITIES.

       Section 232 of the National Housing Act (12 U.S.C. 1715w) 
     is amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``are not acutely ill 
     and'';
       (B) in paragraph (2), by striking ``nevertheless''; and
       (C) by adding at the end the following:
       ``(4) The development of integrated service facilities for 
     the care and treatment of the elderly and other persons in 
     need of health care and related services, but who do not 
     require hospital care, and the support of health care 
     facilities which provide such health care and related 
     services (including those that support hospitals (as defined 
     in section 242(b))).'';
       (2) in subsection (b)--
       (A) in paragraph (1), by striking ``acutely ill and not'';
       (B) in paragraph (4), by inserting after the second period 
     the following: ``Such term includes a parity first mortgage 
     or parity first deed of trust, subject to such terms and 
     conditions as the Secretary may provide.'';

[[Page S5249]]

       (C) in paragraph (6)--
       (i) by striking subparagraph (A) and inserting the 
     following:
       ``(A) meets all applicable licensing and regulatory 
     requirements of the State, or if there is no State law 
     providing for such licensing and regulation by the State, 
     meets all applicable licensing and regulatory requirements of 
     the municipality or other political subdivision in which the 
     facility is located, or, in the absence of any such 
     requirements, meets any underwriting requirements of the 
     Secretary for such purposes;''; and
       (ii) in subparagraph (C), by striking ``and'' at the end;
       (D) in paragraph (7), by striking the period at the end and 
     inserting ``; and''; and
       (E) by adding at the end the following:
       ``(8) the term `integrated service facility' means a 
     facility--
       ``(A) providing integrated health care delivery services 
     designed and operated to provide medical, convalescent, 
     skilled and intermediate nursing, board and care services, 
     assisted living, rehabilitation, custodial, personal care 
     services, or any combination thereof, to sick, injured, 
     disabled, elderly, or infirm persons, or providing services 
     for the prevention of illness, or any combination thereof;
       ``(B) designed, in whole or in part, to provide a continuum 
     of care, as determined by the Secretary, for the sick, 
     injured, disabled, elderly, or infirm;
       ``(C) providing clinical services, outpatient services, 
     including community health services and medical practice 
     facilities and group practice facilities, to sick, injured, 
     disabled, elderly, or infirm persons not in need of the 
     services rendered in other facilities insurable under this 
     title, or for the prevention of illness, or any combination 
     thereof; or
       ``(D)(i) designed, in whole or in part to provide 
     supportive or ancillary services to hospitals (as defined in 
     section 242(b)), which services may include services provided 
     by special use health care facilities, professional office 
     buildings, laboratories, administrative offices, and other 
     facilities supportive or ancillary to health care delivery by 
     such hospitals; and
       ``(ii) that meet standards acceptable to the Secretary, 
     which may include standards governing licensure or State or 
     local approval and regulation of a mortgagor; or
       ``(E) that provides any combination of the services under 
     subparagraphs (A) through (D).'';
       (3) in subsection (d)--
       (A) in the matter preceding paragraph (1)--
       (i) by inserting ``board and care home,'' after 
     ``rehabilitated nursing home,'';
       (ii) by inserting ``integrated service facility,'' after 
     ``assisted living facility,'' the first 2 places it appears;
       (iii) by inserting ``board and care home,'' after 
     ``existing nursing home,''; and
       (iv) by striking ``or a board and care home'' and inserting 
     ``, board and care home or integrated service facility'';
       (B) in paragraph (2)--
       (i) in the matter preceding subparagraph (A), by inserting 
     before ``, including'' the following: ``or a public body, 
     public agency, or public corporation eligible under this 
     section''; and
       (ii) in subparagraph (B), by striking ``energy conservation 
     measures'' and all that follows through ``95-619)'' and 
     inserting ``energy conserving improvements (as defined in 
     section 2(a))''.
       (C) in paragraph (4)(A)--
       (i) in the first sentence--

       (I) by inserting ``, and integrated service facilities that 
     include such nursing home and intermediate care facilities,'' 
     before ``, the Secretary'';
       (II) by striking ``or section 1521 of the Public Health 
     Service Act'' and inserting ``of the Public Health Service 
     Act, or other applicable Federal law (or, in the absence of 
     applicable Federal law, by the Secretary),'';
       (III) by inserting ``, or the portion of an integrated 
     service facility providing such services,'' before ``covered 
     by the mortgage,''; and
       (IV) by inserting ``or for such nursing or intermediate 
     care services within an integrated service facility'' before 
     ``, and (ii)'';

       (ii) in the second sentence, by inserting ``(which may be 
     within an integrated service facility)'' after ``home and 
     facility'';
       (iii) in the third sentence--

       (I) by striking ``mortgage under this section'' and all 
     that follows through ``feasibility'' and inserting the 
     following: ``such mortgage under this section unless (i) the 
     proposed mortgagor or applicant for the mortgage insurance 
     for the home or facility or combined home or facility, or the 
     integrated service facility containing such services, has 
     commissioned and paid for the preparation of an independent 
     study of market need for the project'';
       (II) in clause (i)(II), by striking ``and its relationship 
     to, other health care facilities and'' and inserting ``or 
     such facilities within an integrated service facility, and 
     its relationship to, other facilities providing health 
     care'';
       (III) in clause (i)(IV), by striking ``in the event the 
     State does not prepare the study,''; and
       (IV) in clause (i)(IV), by striking ``the State or''; and
       (V) in clause (ii), by striking ``or section 1521 of the 
     Public Health Service Act'' and inserting ``of the Public 
     Health Service Act, or other applicable Federal law (or, in 
     the absence of applicable Federal law, by the Secretary),'';

       (iv) by striking the penultimate sentence and inserting the 
     following: ``A study commissioned or undertaken by the State 
     in which the facility will be located shall be considered to 
     satisfy such market study requirement. The proposed mortgagor 
     or applicant may reimburse the State for the cost of an 
     independent study referred to in the preceding sentence.''; 
     and
       (v) in the last sentence--

       (I) by inserting ``the proposed mortgagor or applicant for 
     mortgage insurance may obtain from'' after ``10 
     individuals,'';
       (II) by striking ``may'' and inserting ``and''; and
       (III) by inserting a comma before ``written support''; and

       (D) in paragraph (4)(C)(iii), by striking ``the appropriate 
     State'' and inserting ``any appropriate''; and
       (4) in subsection (i)(1), by inserting ``integrated service 
     facilities,'' after ``assisted living facilities,''.

     SEC. 503. HOSPITALS AND HOSPITAL-BASED INTEGRATED SERVICE 
                   FACILITIES.

       Section 242 of the National Housing Act (12 U.S.C. 1715z-7) 
     is amended--
       (1) in subsection (b)--
       (A) in paragraph (1)--
       (i) in subparagraph (A), by adding ``and'' at the end;
       (ii) by striking subparagraph (B); and
       (iii) by redesignating subparagraph (C) as subparagraph (B) 
     and striking ``and'' at the end;
       (B) in paragraph (2), by striking ``respectfully'' and all 
     that follows through the period at the end and inserting 
     ``given such terms in section 207(a), except that the term 
     `mortgage' shall include a parity first mortgage or parity 
     first deed of trust, subject to such terms and conditions as 
     the Secretary may provide; and''; and
       (C) by adding at the end the following:
       ``(3) the term `integrated service facility' has the 
     meaning given the term in section 232(b).'';
       (2) in subsection (c), by striking ``title VII of'' and 
     inserting ``title VI of'';
       (3) in subsection (d)--
       (A) in the matter preceding paragraph (1), by inserting 
     after ``operation,'' the following: ``or that covers an 
     integrated service facility owned or to be owned by an 
     applicant or proposed mortgagor that also owns a hospital in 
     the same market area, including equipment to be used in its 
     operation,'';
       (B) in paragraph (1)--
       (i) in the first sentence, by inserting before the period 
     at the end the following: ``and who, in the case of a 
     mortgage covering an integrated service facility, is also the 
     owner of a hospital facility''; and
       (ii) by adding at the end the following: ``A mortgage 
     insured hereunder covering an integrated service facility may 
     only cover the real and personal property where the eligible 
     facility will be located.'';
       (C) in paragraph (2)(A), by inserting ``or integrated 
     service facility'' before the comma; and
       (D) in paragraph (2)(B), by striking ``energy conservation 
     measures'' and all that follows through ``95-619)'' and 
     inserting ``energy conserving improvements (as defined in 
     section 2(a))'';
       (E) in paragraph (4)--
       (i) in the first sentence--

       (I) by inserting ``for a hospital'' after ``any mortgage''; 
     and
       (II) by striking ``or section 1521 of the Public Health 
     Service Act'' and inserting ``of the Public Health Service 
     Act, or other applicable Federal law (or, in the absence of 
     applicable Federal law, by the Secretary),'';

       (ii) by striking the third sentence and inserting the 
     following: ``If no such State agency exists, or if the State 
     agency exists but is not empowered to provide a certification 
     that there is a need for the hospital as set forth in 
     subparagraph (A) of the first sentence, the Secretary shall 
     not insure any such mortgage under this section unless: (A) 
     the proposed mortgagor or applicant for the hospital has 
     commissioned and paid for the preparation of an independent 
     study of market need for the proposed project that: (i) is 
     prepared in accordance with the principles established by the 
     Secretary, in consultation with the Secretary of Health and 
     Human Services (to the extent the Secretary of Housing and 
     Urban Development considers appropriate); (ii) assesses, on a 
     marketwide basis, the impact of the proposed hospital on, and 
     its relationship to, other facilities providing health care 
     services, the percentage of excess beds, demographic 
     projections, alternative health care delivery systems, and 
     the reimbursement structure of the hospital; (iii) is 
     addressed to and is acceptable to the Secretary in form and 
     substance; and (iv) is prepared by a financial consultant 
     selected by the proposed mortgagor or applicant and approved 
     by the Secretary; and (B) the State complies with the other 
     provisions of this paragraph that would otherwise be required 
     to be met by a State agency designated in accordance with 
     section 604(a)(1) of the Public Health Service Act, or other 
     applicable Federal law (or, in the absence of applicable 
     Federal law, by the Secretary). A study commissioned or 
     undertaken by the State in which the hospital will be located 
     shall be considered to satisfy such market study 
     requirement.''; and
       (iii) in the last sentence, by striking ``feasibility''; 
     and
       (4) in subsection (f), by inserting ``and public integrated 
     service facilities'' after ``public hospitals''.

[[Page S5250]]

     SEC. 504. HOME EQUITY CONVERSION MORTGAGES.

       (a) In General.--Section 255 of the National Housing Act 
     (12 U.S.C. 1715z-20) is amended--
       (1) by redesignating subsection (k) as subsection (l); and
       (2) by inserting after subsection (j) the following:
       ``(k) Insurance Authority for Refinancings.--
       ``(1) In general.--The Secretary may, upon application by a 
     mortgagee, insure under this subsection any mortgage given to 
     refinance an existing home equity conversion mortgage insured 
     under this section.
       ``(2) Anti-churning disclosure.--The Secretary shall, by 
     regulation, require that the mortgagee of a mortgage insured 
     under this subsection, provide to the mortgagor, within an 
     appropriate time period and in a manner established in such 
     regulations, a good faith estimate of--
       ``(A) the total cost of the refinancing; and
       ``(B) the increase in the mortgagor's principal limit as 
     measured by the estimated initial principal limit on the 
     mortgage to be insured under this subsection less the current 
     principal limit on the home equity conversion mortgage that 
     is being refinanced and insured under this subsection.
       ``(3) Waiver of counseling requirement.--The mortgagor 
     under a mortgage insured under this subsection may waive the 
     applicability, with respect to such mortgage, of the 
     requirements under subsection (d)(2)(B) (relating to third 
     party counseling), but only if--
       ``(A) the mortgagor has received the disclosure required 
     under paragraph (2);
       ``(B) the increase in the principal limit described in 
     paragraph (2) exceeds the amount of the total cost of 
     refinancing (as described in such paragraph) by an amount to 
     be determined by the Secretary; and
       ``(C) the time between the closing of the original home 
     equity conversion mortgage that is refinanced through the 
     mortgage insured under this subsection and the application 
     for a refinancing mortgage insured under this subsection does 
     not exceed 5 years.
       ``(4) Credit for premiums paid.--Notwithstanding section 
     203(c)(2)(A), the Secretary may reduce the amount of the 
     single premium payment otherwise collected under such section 
     at the time of the insurance of a mortgage refinanced and 
     insured under this subsection. The amount of the single 
     premium for mortgages refinanced under this subsection shall 
     be determined by the Secretary based on an actuarial study 
     conducted by the Secretary.
       ``(5) Fees.--The Secretary may establish a limit on the 
     origination fee that may be charged to a mortgagor under a 
     mortgage insured under this subsection, except that such 
     limitation shall provide that the origination fee may be 
     fully financed with the mortgage and shall include any fees 
     paid to correspondent mortgagees approved by the Secretary. 
     The Secretary shall prohibit the charging of any broker fees 
     in connection with mortgages insured under this 
     subsection.''.
       (b) Regulations.--
       (1) In general.--Notwithstanding sections 2 and 3 of this 
     Act, the Secretary shall issue any final regulations 
     necessary to implement the amendments made by subsection (a) 
     of this section, which shall take effect not later than the 
     expiration of the 180-day period beginning on the date of 
     enactment of this Act.
       (2) Procedure.--The regulations under this subsection shall 
     be issued after notice and opportunity for public comment in 
     accordance with the procedure under section 553 of title 5, 
     United States Code, applicable to substantive rules 
     (notwithstanding subsections (a)(2), (b)(B), and (d)(3) of 
     such section).
  Mr. KERRY. Mr. President, today, along with my colleagues, Senators 
Santorum and Sarbanes, I am introducing legislation which will help 
address the lack of affordable housing for the most vulnerable 
Americans--the elderly, disabled persons, and low-income families. This 
bill closes a number of gaps in the federal housing assistance programs 
for these families, and ensures that programs designed to promote 
affordable housing can do so in this rapidly expanding economy.
  As our economy flourishes at an unprecedented rate, many Americans 
have prospered. However, as the economy grows, so too does the gap 
between rich and poor. Instead of finding opportunities in this new 
economy, some Americans have found closed doors. This is especially 
true for low-income people who are being squeezed out of tight housing 
markets in my home state of Massachusetts and around the Nation.
  Although a majority of elderly Americans live in decent, adequate and 
affordable housing, millions of elderly households require some 
assistance in order to afford housing that meets their needs. In fact, 
there are eight elderly people waiting for each unit of assisted 
elderly housing in this country. Fourteen percent of people in 
Massachusetts are over 65 years of age, and one out of every ten of 
these elderly persons has an income below the poverty level.
  This bill expands upon the current program of providing affordable 
housing, increasing housing opportunities for low-income elderly and 
disabled persons, and bringing the program up-to-date. As Americans 
grow older, housing programs must be altered to address the changing 
needs of a generation that is living longer, and aging in place. This 
bill enables existing housing to be converted to assisted living 
facilities to meet the needs of the elderly and disabled.
  Assisted living is the fastest growing type of elderly housing in the 
U.S., and this legislation ensures that this supportive, and 
increasingly necessary living arrangement, is available to all elderly 
and disabled Americans, regardless of income. By 2030, 20 percent of 
this Nation's population will be over the age of 65, compared with only 
13 percent of the population today. As we make strides in medicine to 
allow older people to live longer, more active lives, we must also make 
sure that the services and structures are in place to support elderly 
Americans. This bill is a step in this direction.
  This bill also encourages the leveraging of federal funds, helping to 
increase the stock of affordable housing. Public dollars alone are 
unable to meet the needs of low-income families. This legislation makes 
it easier for federal funds for disabled and elderly housing to be 
combined with other sources of funding, including the Low-Income 
Housing Tax Credit, and private funds.
  Not only will this bill increase the supply of affordable housing for 
the elderly and disabled, it will help to preserve affordable housing 
for all low-income households. A record high number of households, 5.4 
million, have worst case housing needs, paying over 50 percent of their 
income to housing costs or living in substandard housing. This is a 12 
percent increase since 1991. At the same time that more Americans are 
finding it increasingly difficult to find suitable and affordable 
housing, the federal government has not been doing enough to preserve 
the affordable housing that exists.
  A number of provisions aim to ensure that affordable housing is 
preserved. This bill allows uninsured 236 project owners to retain 
their excess income for use in the project, helping to keep these 
owners in the program and ensuring that the units will remain 
affordable. In addition, this bill includes the preservation bill 
introduced earlier this Congress by Senator Jeffords and myself, S. 
1318, to provide matching grants to States and localities devoting 
resources to the preservation of affordable housing. Cities, like 
Boston, which have dedicated a substantial amount of funds to the 
production and preservation of affordable housing units, would receive 
federal funds to assist in their efforts under this provision, ensuring 
that an even greater number of units are preserved.
  I hope that this critical legislation will attract broad support. At 
this time of prosperity, we cannot forget that while many Americans 
have benefited, there are still too many people who cannot afford to 
meet their basic housing needs. These people cannot be overlooked in 
this era of economic growth. This legislation ensures that they won't 
be.
  Mr. SARBANES. Mr President, I come to the floor today in support of 
the Affordable Housing for Seniors and Families Act introduced by 
Senators Kerry and Santorum.
  This bill expands upon critical housing programs for both elderly and 
disabled Americans. The Nation's population of elderly is growing 
rapidly. Between 1980 and 1997, the number of people over the age of 65 
grew by 33 percent. AARP estimates that by 2030, 20 percent of the 
population will be over 65 years of age, compared to only 13 percent of 
the population today. We need to have programs in place to assist 
growing numbers of seniors.
  AARP also estimates that there will be 2.8 million elderly people 
who, by 2020, will have difficulty performing a number of basic 
functions such as eating, bathing, and dressing. As American's age, 
traditional housing will have to change to accommodate the unique needs 
of those in their golden years. This bill will ensure that additional 
housing opportunities exist where these Americans can receive the 
services they need. This legislation allows

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traditional elderly and disabled housing to be converted to assisted 
living facilities, to meet these growing needs.
  We must not only work to ensure that adequate services are available, 
we must work to increase the affordable housing stock. A recent study 
conducted by HUD indicates that 1.7 million low-income elderly are in 
urgent need of affordable housing. Nearly 7.4 million elderly 
households pay more than they can afford on housing, and there are more 
than eight elderly people waiting for every unit of assisted elderly 
housing.
  In addition, HUD estimates that 1.4 million disabled Americans have 
worst case housing needs, meaning they pay over half of their income 
for housing or live in substandard housing. The Consortium for Persons 
with Disabilities conducted a study in 1998 which showed that there was 
not one housing market in the U.S. where a disabled person receiving 
SSI benefits could afford rent based on federal guidelines.
  The federal government is not doing enough to meet the needs of these 
low-income people. This legislation assists us in meeting these needs. 
It expands access to capital from both federal and non-federal sources 
for elderly and disabled housing programs, helping to create new 
housing opportunities for these communities. Providers of elderly and 
disabled housing will be able to link with the Low-Income Housing Tax 
Credit, a crucial source of affordable housing funding, and other 
private funds.
  This bill also ensures that the affordable housing which exists in 
this country is maintained. This crucial stock of housing will be 
preserved through a matching grant preservation program authored by our 
colleagues, Senators Kerry and Jeffords, which will reward States and 
localities spending resources to preserve affordable housing by giving 
them federal dollars to assist in their efforts. This provision will 
help to ensure that as we increase the stock of affordable housing on 
the front end, we are not losing units on the back end--our goal is to 
increase available housing, not maintain the status quo.
  This bill is a step in the right direction towards providing 
necessary housing opportunities for those Americans that are too often 
forgotten. And many people in this nation enjoy the benefits of a 
prospering economy, so too are many Americans being left behind. This 
legislation will ensure that more Americans have the opportunity to 
live in safe and decent housing.
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