[Congressional Record Volume 156, Number 168 (Friday, December 17, 2010)]
[Senate]
[Pages S10444-S10451]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




        FRANK MELVILLE SUPPORTIVE HOUSING INVESTMENT ACT OF 2009

  Mr. KERRY. Mr. President, I ask unanimous consent the Senate proceed 
to the immediate consideration of Calendar No. 689, S. 1481.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The assistant legislative clerk read as follows:

       A bill (S. 1481) to amend section 811 of the Cranston-
     Gonzalez National Affordable Housing Act to improve the 
     program under such section for supportive housing for persons 
     with disabilities.

  There being no objection, the Senate proceeded to consider the bill, 
which had been reported from the Committee on Banking, Housing and 
Urban Affairs, with amendments, as follows:
  (The parts of the bill intended to be stricken are shown in boldface 
brackets and the parts of the bill intended to be inserted are shown in 
italics.)

                                S. 1481

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

     SECTION 1. SHORT TITLE; REFERENCES.

       (a) Short Title.--This Act may be cited as the ``Frank 
     Melville Supportive Housing Investment Act of [2009]2010''.
       (b) References.--Except as otherwise expressly provided, 
     wherever in this Act an amendment or repeal is expressed in 
     terms of an amendment to, or repeal of, section 811 or any 
     other provision of section 811, the reference shall be 
     considered to be made to section 811 of the Cranston-Gonzalez 
     National Affordable Housing Act (42 U.S.C. 8013).

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

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

     SEC. 2. TENANT-BASED RENTAL ASSISTANCE.

       (a) Renewal Through Section 8.--Section 811(d)(4) is 
     amended to read as follows:
       ``(4) Tenant-based rental assistance.--
       ``(A) In general.--Tenant-based rental assistance provided 
     under subsection (b)(1) shall be provided under section 8(o) 
     of the United States Housing Act of 1937 (42 U.S.C. 
     1437f(o)).
       ``(B) Conversion of existing assistance.--There is 
     authorized to be appropriated for tenant-based rental 
     assistance under section 8(o) of the United States Housing 
     Act of 1937 (42 U.S.C. 1437f(o)) for persons with 
     disabilities an amount not less than the amount necessary to 
     convert the number of authorized vouchers and funding under 
     an annual contributions contract in effect on the date of 
     enactment of the Frank Melville Supportive Housing Investment 
     Act of 2010. Such converted vouchers may be administered by 
     the entity administering the vouchers prior to conversion. 
     For purposes of administering such converted vouchers, such 
     entities shall be considered a `public housing agency' 
     authorized to engage in the operation of tenant-based 
     assistance under section 8 of the United States Housing Act 
     of 1937 .
       ``(C) Requirements upon turnover.--The Secretary shall 
     develop and issue, to public housing agencies that receive 
     voucher assistance made available under this subsection and 
     to public housing agencies that received voucher assistance 
     under section 8(o) of the United States Housing Act of 1937 
     (42 U.S.C. 1437f(o)) for non-elderly disabled families 
     pursuant to appropriation Acts for fiscal years 1997 through 
     2002 or any other subsequent appropriations for incremental 
     vouchers for non-elderly disabled families, guidance to 
     ensure that, to the maximum extent possible, such vouchers 
     continue to be provided upon turnover to qualified persons 
     with disabilities or to qualified non-elderly disabled 
     families, respectively.''.
       (b) Provision of Technical Assistance.--The Secretary is 
     authorized to the extent amounts are made available in future 
     appropriations Acts, to provide technical assistance to 
     public housing agencies and other administering entities to 
     facilitate using vouchers to provide permanent supportive 
     housing for persons with disabilities, help States reduce 
     reliance on segregated restrictive settings for people with 
     disabilities to meet community care requirements, end chronic 
     homelessness, as ``chronically homeless'' is defined in 
     section 401 of the

[[Page S10445]]

     McKinney-Vento Homeless Assistance Act (42 U.S.C. 11361), and 
     for other related purposes.

     SEC. 3. MODERNIZED CAPITAL ADVANCE PROGRAM.

       (a) Project Rental Assistance Contracts.--Section 811 is 
     amended--
       (1) in subsection (d)(2)--
       (A) by inserting ``(A) Initial project rental assistance 
     contract.--'' after ``Project rental assistance.--'';
       (B) in the first sentence, by inserting after ``shall'' the 
     following: ``comply with subsection (e)(2) and shall'';
       (C) by striking ``annual contract amount'' each place such 
     term appears and inserting ``amount provided under the 
     contract for each year covered by the contract''; and
       (D) by adding at the end the following new subparagraph:
       ``(B) Renewal of and increases in contract amounts.--
       ``(i) Expiration of contract term.--Upon the expiration of 
     each contract term, subject to the availability of amounts 
     made available in appropriation Acts, the Secretary shall 
     adjust the annual contract amount to provide for reasonable 
     project costs, [and any increases,] including adequate 
     reserves and service coordinators as appropriate, except that 
     any contract amounts not used by a project during a contract 
     term shall not be available for such adjustments upon 
     renewal.
       ``(ii) Emergency situations.--In the event of emergency 
     situations that are outside the control of the owner, the 
     Secretary shall increase the annual contract amount, subject 
     to reasonable review and limitations as the Secretary shall 
     provide.''.
       (2) in subsection (e)(2)--
       (A) in the first sentence, by inserting before the period 
     at the end the following: ``, except that, in the case of the 
     sponsor of a project assisted with any low-income housing tax 
     credit pursuant to section 42 of the Internal Revenue Code of 
     1986 or with any tax-exempt housing bonds, the contract shall 
     have an initial term of not less than 360 months and shall 
     provide funding for a term of 60 months''; and
       (B) by striking ``extend any expiring contract'' and insert 
     ``upon expiration of a contract (or any renewed contract), 
     renew such contract''.
       (b) Program Requirements.--Section 811 is amended--
       (1) in subsection (e)--
       (A) by striking the subsection heading and inserting the 
     following: ``Program Requirements'';
       (B) by striking paragraph (1) and inserting the following 
     new paragraph:
       ``(1) Use restrictions.--
       ``(A) Term.--Any project for which a capital advance is 
     provided under subsection (d)(1) shall be operated for not 
     less than 40 years as supportive housing for persons with 
     disabilities, in accordance with the application for the 
     project approved by the Secretary and shall, during such 
     period, be made available for occupancy only by very low-
     income persons with disabilities.
       ``(B) Conversion.--If the owner of a project requests the 
     use of the project for the direct benefit of very low-income 
     persons with disabilities and, pursuant to such request the 
     Secretary determines that a project is no longer needed for 
     use as supportive housing for persons with disabilities, the 
     Secretary may approve the request and authorize the owner to 
     convert the project to such use.''; and
       (C) by adding at the end the following new paragraphs:
       ``(3) Limitation on use of funds.--No assistance received 
     under this section (or any State or local government funds 
     used to supplement such assistance) may be used to replace 
     other State or local funds previously used, or designated for 
     use, to assist persons with disabilities.
       ``(4) Multifamily projects.--
       ``(A) Limitation.--Except as provided in subparagraph (B), 
     of the total number of dwelling units in any multifamily 
     housing project (including any condominium or cooperative 
     housing project) containing any unit for which assistance is 
     provided from a capital grant under subsection (d)(1) made 
     after the date of the enactment of the Frank Melville 
     Supportive Housing Investment Act of [2009]2010, the 
     aggregate number that are used for persons with disabilities, 
     including supportive housing for persons with disabilities, 
     or to which any occupancy preference for persons with 
     disabilities applies, may not exceed 25 percent of such 
     total.
       ``(B) Exception.--Subparagraph (A) shall not apply in the 
     case of any project that is a group home or independent 
     living facility.''; and
       (2) in subsection (l), by striking paragraph (4).
       (c) Delegated Processing.--Subsection (g) of section 811 
     (42 U.S.C. 8013(g)) is amended--
       (1) by striking ``Selection Criteria.--'' and inserting 
     ``Selection Criteria and Processing.--(1) Selection 
     criteria.--'';
       (2) by redesignating paragraphs (1), (2), (3), (4), (5), 
     (6), and (7) as subparagraphs (A), (B), (C), (D), (E), (G), 
     and (H), respectively; and
       (3) by adding at the end the following new paragraph:
       ``(2) Delegated Processing.--
       ``(A) In issuing a capital advance under subsection (d)(1) 
     for any multifamily project (but not including any project 
     that is a group home or independent living facility) for 
     which financing for the purposes described in the last 
     sentence of subsection (b) is provided by a combination of 
     the capital advance and sources other than this section, 
     within 30 days of award of the capital advance, the Secretary 
     shall delegate review and processing of such projects to a 
     State or local housing agency that--
       ``(i) is in geographic proximity to the property;
       ``(ii) has demonstrated experience in and capacity for 
     underwriting multifamily housing loans that provide housing 
     and supportive services;
       ``(iii) may or may not be providing low-income housing tax 
     credits in combination with the capital advance under this 
     section; and
       ``(iv) agrees to issue a firm commitment within 12 months 
     of delegation.
       ``(B) The Secretary shall retain the authority to process 
     capital advances in cases in which no State or local housing 
     agency [has applied to]is sufficiently qualified to provide 
     delegated processing pursuant to this paragraph or no such 
     agency has entered into an agreement with the Secretary to 
     serve as a delegated processing agency.
       ``(C) The Secretary shall--
       ``(i) develop criteria and a timeline to periodically 
     assess the performance of State and local housing agencies in 
     carrying out the duties delegated to such agencies pursuant 
     to subparagraph (A); and
       ``(ii) retain the authority to review and process projects 
     financed by a capital advance in the event that, after a 
     review and assessment, a State or local housing agency is 
     determined to have failed to satisfy the criteria established 
     pursuant to clause (i).
       ``([C]D) An agency to which review and processing is 
     delegated pursuant to subparagraph (A) may assess a 
     reasonable fee which shall be included in the capital advance 
     amounts and may recommend project rental assistance amounts 
     in excess of those initially awarded by the Secretary. The 
     Secretary shall develop a schedule for reasonable fees under 
     this subparagraph to be paid to delegated processing 
     agencies, which shall take into consideration any other fees 
     to be paid to the agency for other funding provided to the 
     project by the agency, including bonds, tax credits, and 
     other gap funding.
       ``([D]E) Under such delegated system, the Secretary shall 
     retain the authority to approve rents and development costs 
     and to execute a capital advance within 60 days of receipt of 
     the commitment from the State or local agency. The Secretary 
     shall provide to such agency and the project sponsor, in 
     writing, the reasons for any reduction in capital advance 
     amounts or project rental assistance and such reductions 
     shall be subject to appeal.''.
       (d) Leveraging Other Resources.--Paragraph (1) of section 
     811(g) (as so designated by subsection (c)(1) of this 
     section) is amended by inserting after subparagraph (E) (as 
     so redesignated by subsection (c)(2) of this section) the 
     following new subparagraph:
       ``(F) the extent to which the per-unit cost of units to be 
     assisted under this section will be supplemented with 
     resources from other public and private sources;''.
       (e) Tenant Protections and Eligibility for Occupancy.--
     Section 811 is amended by striking subsection (i) and 
     inserting the following new subsection:
       ``(i) Admission and Occupancy.--
       ``(1) Tenant selection.--
       ``(A) Procedures.--An owner shall adopt written tenant 
     selection procedures that are satisfactory to the Secretary 
     as (i) consistent with the purpose of improving housing 
     opportunities for very low-income persons with disabilities; 
     and (ii) reasonably related to program eligibility and an 
     applicant's ability to perform the obligations of the lease. 
     Owners shall promptly notify in writing any rejected 
     applicant of the grounds for any rejection.
       ``(B) Requirement for occupancy.--Occupancy in dwelling 
     units provided assistance under this section shall be 
     available only to persons with disabilities and households 
     that include at least one person with a disability.
       ``(C) Availability.--Except only as provided in 
     subparagraph (D), occupancy in dwelling units in housing 
     provided with assistance under this section shall be 
     available to all persons with disabilities eligible for such 
     occupancy without regard to the particular disability 
     involved.
       ``(D) Limitation on occupancy.--Notwithstanding any other 
     provision of law, the owner of housing developed under this 
     section may, with the approval of the Secretary, limit 
     occupancy within the housing to persons with disabilities who 
     can benefit from the supportive services offered in 
     connection with the housing.
       ``(2) Tenant protections.--
       ``(A) Lease.--The lease between a tenant and an owner of 
     housing assisted under this section shall be for not less 
     than one year, and shall contain such terms and conditions as 
     the Secretary shall determine to be appropriate.
       ``(B) Termination of tenancy.--An owner may not terminate 
     the tenancy or refuse to renew the lease of a tenant of a 
     rental dwelling unit assisted under this section except--
       ``(i) for serious or repeated violation of the terms and 
     conditions of the lease, for violation of applicable Federal, 
     State, or local law, or for other good cause; and
       ``(ii) by providing the tenant, not less than 30 days 
     before such termination or refusal to renew, with written 
     notice specifying the grounds for such action.
       ``(C) Voluntary participation in services.--A supportive 
     service plan for housing assisted under this section shall 
     permit each resident to take responsibility for choosing and 
     acquiring their own services, to receive

[[Page S10446]]

     any supportive services made available directly or indirectly 
     by the owner of such housing, or to not receive any 
     supportive services.''.
       (f) Development Cost Limitations.--Subsection (h) of 
     section 811 is amended--
       (1) in paragraph (1)--
       (A) by striking the paragraph heading and inserting ``Group 
     homes'';
       (B) in the first sentence, by striking ``various types and 
     sizes'' and inserting ``group homes'';
       (C) by striking subparagraph (E); and
       (D) by redesignating subparagraphs (F) and (G) as 
     subparagraphs (E) and (F), respectively;
       (2) in paragraph (3), by inserting ``established pursuant 
     to paragraph (1)'' after ``cost limitation''; and
       (3) by adding at the end the following new paragraph:
       ``(6) Applicability of home program cost limitations.--
       ``(A) In general.--The provisions of section 212(e) of the 
     Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
     12742(e)) and the cost limits established by the Secretary 
     pursuant to such section with respect to the amount of funds 
     under subtitle A of title II of such Act that may be invested 
     on a per unit basis, shall apply to supportive housing 
     assisted with a capital advance under subsection (d)(1) and 
     the amount of funds under such subsection that may be 
     invested on a per unit basis.
       ``(B) Waivers.--The Secretary [shall]may provide for waiver 
     of the cost limits applicable pursuant to subparagraph (A)--
       ``(i) in the cases in which the cost limits established 
     pursuant to section 212(e) of the Cranston-Gonzalez National 
     Affordable Housing Act may be waived; and
       ``(ii) to provide for--

       ``(I) the cost of special design features to make the 
     housing accessible to persons with disabilities;
       ``(II) the cost of special design features necessary to 
     make individual dwelling units meet the special needs of 
     persons with disabilities; and
       ``(III) the cost of providing the housing in a location 
     that is accessible to public transportation and community 
     organizations that provide supportive services to persons 
     with disabilities.''.

       [(g) Repeal of Authority To Waive Size Limitations.--
     Paragraph (1) of section 811(k) is amended--
       [(1) in paragraph (1), by striking the second sentence; and
       [(2) in paragraph (4), by striking ``(or such higher number 
     of persons'' and all that follows through ``subsection 
     (h)(6))''.]
       (g) Congressional Notification of Waiver.--Section 
     811(k)(1) is amended by adding the following after the second 
     sentence: ``Not later than the date of the exercise of any 
     waiver permitted under the previous sentence, the Secretary 
     shall notify the Committee on Banking, Housing, and Urban 
     Affairs of the Senate and the Committee on Financial Services 
     of the House of Representatives of the waiver or the 
     intention to exercise the waiver, together with a detailed 
     explanation of the reason for the waiver.''.
       (h) Minimum Allocation for Multifamily Projects.--
     [Subsection (l) of section 811, as amended by the preceding 
     provisions of this Act, is further amended by inserting 
     before paragraph (2) the following new paragraph:]Paragraph 
     (1) of section 811(l) is amended to read as follows:
       ``(1) Minimum allocation for multifamily projects.--The 
     Secretary shall establish a minimum percentage of the amount 
     made available for each fiscal year for capital advances 
     under subsection (d)(1) that shall be used for multifamily 
     projects subject to subsection (e)(4).''.

     SEC. 4. PROJECT RENTAL ASSISTANCE COMPETITIVE DEMONSTRATION 
                   PROGRAM.

       Section 811, as amended by the preceding provisions of this 
     Act, is further amended--
       (1) by redesignating subsections (k) through (n) as 
     subsections (l) through (o), respectively; and
       (2) by inserting after subsection (j) the following new 
     subsection:
       ``(k) Project Rental Assistance-Only Competitive 
     Demonstration Program.--
       ``(1) Authority.--The Secretary shall carry out a 
     demonstration program under this subsection to expand the 
     supply of supportive housing for non-elderly adults with 
     disabilities, under which the Secretary shall make funds 
     available for project rental assistance pursuant to paragraph 
     (2) for eligible projects under paragraph (3). The Secretary 
     shall provide for State housing finance agencies and other 
     appropriate entities to apply to the Secretary for such 
     project rental assistance funds, which shall be made 
     available by such agencies and entities for dwelling units in 
     eligible projects based upon criteria established by the 
     Secretary for the demonstration program under this 
     subsection. The Secretary may not require any State housing 
     finance agency or other entity applying for project rental 
     assistance funds under the demonstration program to identify 
     in such application the eligible projects for which such 
     funds will be used, and shall allow such agencies and 
     applicants to subsequently identify such eligible projects 
     pursuant to the making of commitments described in paragraph 
     (3)(B).
       ``(2) Project rental assistance.--
       ``(A) Contract terms.--Project rental assistance under the 
     demonstration program under this subsection shall be 
     provided--
       ``(i) in accordance with subsection (d)(2);
       ``(ii) under a contract having an initial term of not less 
     than 180 months that provides funding for a term 60 months, 
     which funding shall be renewed upon expiration, subject to 
     the availability of sufficient amounts in appropriation Acts.
       ``(B) Limitation on units assisted.--Of the total number of 
     dwelling units in any multifamily housing project containing 
     any unit for which project rental assistance under the 
     demonstration program under this subsection is provided, the 
     aggregate number that are provided such project rental 
     assistance, that are used for supportive housing for persons 
     with disabilities, or to which any occupancy preference for 
     persons with disabilities applies, may not exceed 25 percent 
     of such total.
       ``(C) Prohibition of capital advances.--The Secretary may 
     not provide a capital advance under subsection (d)(1) for any 
     project for which assistance is provided under the 
     demonstration program.
       ``(D) Eligible population.--Project rental assistance under 
     the demonstration program under this subsection may be 
     provided only for dwelling units for extremely low-income 
     persons with disabilities and extremely low-income households 
     that include at least one person with a disability.
       ``(3) Eligible projects.--An eligible project under this 
     paragraph is a new or existing multifamily housing project 
     for which--
       ``(A) the development costs are paid with resources from 
     other public or private sources; and
       ``(B) a commitment has been made--
       ``(i) by the applicable State agency responsible for 
     allocation of low-income housing tax credits under section 42 
     of the Internal Revenue Code of 1986, for an allocation of 
     such credits;
       ``(ii) by the applicable participating jurisdiction that 
     receives assistance under the HOME Investment Partnership 
     Act, for assistance from such jurisdiction; or
       ``(iii) by any Federal agency or any State or local 
     government, for funding for the project from funds from any 
     other sources.
       ``(4) State agency involvement.--Assistance under the 
     demonstration may be provided only for projects for which the 
     applicable State agency responsible for health and human 
     services programs, and the applicable State agency designated 
     to administer or supervise the administration of the State 
     plan for medical assistance under title XIX of the Social 
     Security Act, have entered into such agreements as the 
     Secretary considers appropriate--
       ``(A) to identify the target populations to be served by 
     the project;
       ``(B) to set forth methods for outreach and referral; and
       ``(C) to make available appropriate services for tenants of 
     the project.
       ``(5) Use requirements.--In the case of any project for 
     which project rental assistance is provided under the 
     demonstration program under this subsection, the dwelling 
     units assisted pursuant to paragraph (2) shall be operated 
     for not less than 30 years as supportive housing for persons 
     with disabilities, in accordance with the application for the 
     project approved by the Secretary, and such dwelling units 
     shall, during such period, be made available for occupancy 
     only by persons and households described in paragraph (2)(D).
       ``(6) Duration of demonstration.--The Secretary may provide 
     new project rental assistance contracts pursuant to the 
     demonstration program established under this subsection for a 
     period of not more than 5 years.
       ``([6]7) Report.--Upon the expiration of the 5-year period 
     [beginning on the date of the enactment of the Frank Melville 
     Supportive Housing Investment Act of 2009]set forth in 
     paragraph (6), the Secretary shall submit to the Congress a 
     report describing the demonstration program under this 
     subsection, analyzing the effectiveness of the program, 
     including the effectiveness of the program compared to the 
     program for capital advances in accordance with subsection 
     (d)(1) (as in effect pursuant to the amendments made by such 
     Act), and making recommendations regarding future models for 
     assistance under this section based upon the experiences 
     under the program.''.

     SEC. 5. TECHNICAL CORRECTIONS.

       Section 811 is amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``and'' at the end;
       (B) in paragraph (2)--
       (i) by striking ``provides'' and inserting ``makes 
     available''; and
       (ii) by striking the period at the end and inserting ``; 
     and''; and
       (C) by adding at the end the following new paragraph:
       ``(3) promotes and facilitates community integration for 
     people with significant and long-term disabilities.'';
       (2) in subsection (c)--
       (A) in paragraph (1), by striking ``special'' and inserting 
     ``housing and community-based services''; and
       (B) in paragraph (2)--
       (i) by striking subparagraph (A) and inserting the 
     following:
       ``(A) make available voluntary supportive services that 
     address the individual needs of persons with disabilities 
     occupying such housing;''; and
       (ii) in subparagraph (B), by striking the comma and 
     inserting a semicolon;
       (3) in subsection (d)(1), by striking ``provided under'' 
     and all that follows through

[[Page S10447]]

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

     SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

       Subsection (n) of section 811 (as so redesignated by 
     section 4(1) of this Act) is amended to read as follows:
       ``(n) Authorization of Appropriations.--There is authorized 
     to be appropriated for each of fiscal years [2009 through 
     2012]2011 through 2015 the following amounts:
       ``(1) Capital advance/prac program.--For providing 
     assistance pursuant to subsection (b), such sums as may be 
     necessary.
       ``(2) Demonstration program.--For carrying out the 
     demonstration program under subsection (k), such sums as may 
     be necessary to provide 2,500 incremental dwelling units 
     under such program in fiscal year [2009]2011 and 5,000 
     incremental dwelling units under such program in each of 
     fiscal years [2010, 2011, and 2012]2012, 2013, 2014, and 
     2015.''.

     SEC. 7. NEW REGULATIONS AND PROGRAM GUIDANCE.

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

     SEC. 8. GAO STUDY.

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

     Upon the completion of the study required under this section, 
     the Comptroller General shall submit a report to the Congress 
     setting forth the findings and conclusions of the study.

  Mr. KERRY. Mr. President, I ask unanimous consent the committee-
reported amendments be considered, a Johanns amendment which is at the 
desk be agreed to, that the committee-reported amendments, as amended, 
be agreed to, the bill as amended be read a third time and passed, the 
motions to reconsider be laid upon the table, with no intervening 
action or debate, and any statements be printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 4836) was agreed to, as follows:

       On page 19, line 9, strike ``811(k)(1) is amended by adding 
     the following'' and insert the following: ``811(k) is 
     amended--
       ``(1) in paragraph (1), by adding the following''
       On page 19, line 16, strike the second period and insert 
     the following: ``; and''.
       On page 19, between lines 16 and 17, insert the following:
       (2) in paragraph (4)--
       (A) by striking ``prescribe, subject to the limitation 
     under subsection (h)(6) of this section)'' and inserting 
     ``prescribe)''; and
       (B) by adding the following after the first sentence: ``Not 
     later than the date that the Secretary prescribes a limit 
     exceeding the 24 person limit in the previous sentence, the 
     Secretary shall notify the Committee on Banking, Housing, and 
     Urban Affairs of the Senate and the Committee on Financial 
     Services of the House of Representatives of the limit or the 
     intention to prescribe a limit in excess of 24 persons, 
     together with a detailed explanation of the reason for the 
     new limit.''.
       On page 20, strike line 4 and all that follows through page 
     25, line 14, and insert the following:

     SEC. 4. PROJECT RENTAL ASSISTANCE.

       Section 811(b) is amended--
       (1) in the matter preceding paragraph (1), by striking ``is 
     authorized--'' and inserting ``is authorized to take the 
     following actions:'';
       (2) in paragraph (1)--
       (A) by striking ``(1) to provide tenant-based'' and 
     inserting ``(1) Tenant-based assistance.--To provide tenant-
     based''; and
       (B) by striking ``; and'' and inserting a period;

[[Page S10448]]

       (3) in paragraph (2), by striking ``(2) to provide 
     assistance'' and inserting ``(2) Capital advances.--To 
     provide assistance''; and
       (4) by adding at the end the following:
       ``(3) Project rental assistance.--
       ``(A) In general.--To offer additional methods of financing 
     supportive housing for non-elderly adults with disabilities, 
     the Secretary shall make funds available for project rental 
     assistance pursuant to subparagraph (B) for eligible projects 
     under subparagraph (C). The Secretary shall provide for State 
     housing finance agencies and other appropriate entities to 
     apply to the Secretary for such project rental assistance 
     funds, which shall be made available by such agencies and 
     entities for dwelling units in eligible projects based upon 
     criteria established by the Secretary. The Secretary may not 
     require any State housing finance agency or other entity 
     applying for such project rental assistance funds to identify 
     in such application the eligible projects for which such 
     funds will be used, and shall allow such agencies and 
     applicants to subsequently identify such eligible projects 
     pursuant to the making of commitments described in 
     subparagraph (C)(ii).
       ``(B) Contract terms.--
       ``(i) Contract terms.--Project rental assistance under this 
     paragraph shall be provided--

       ``(I) in accordance with subsection (d)(2); and
       ``(II) under a contract having an initial term of not less 
     than 180 months that provides funding for a term 60 months, 
     which funding shall be renewed upon expiration, subject to 
     the availability of sufficient amounts in appropriation Acts.

       ``(ii) Limitation on units assisted.--Of the total number 
     of dwelling units in any multifamily housing project 
     containing any unit for which project rental assistance under 
     this paragraph is provided, the aggregate number that are 
     provided such project rental assistance, that are used for 
     supportive housing for persons with disabilities, or to which 
     any occupancy preference for persons with disabilities 
     applies, may not exceed 25 percent of such total.
       ``(iii) Prohibition of capital advances.--The Secretary may 
     not provide a capital advance under subsection (d)(1) for any 
     project for which assistance is provided under this 
     paragraph.
       ``(iv) Eligible population.--Project rental assistance 
     under this paragraph may be provided only for dwelling units 
     for extremely low-income persons with disabilities and 
     extremely low-income households that include at least one 
     person with a disability.
       ``(C) Eligible projects.--An eligible project under this 
     subparagraph is a new or existing multifamily housing project 
     for which--
       ``(i) the development costs are paid with resources from 
     other public or private sources; and
       ``(ii) a commitment has been made--

       ``(I) by the applicable State agency responsible for 
     allocation of low-income housing tax credits under section 42 
     of the Internal Revenue Code of 1986, for an allocation of 
     such credits;
       ``(II) by the applicable participating jurisdiction that 
     receives assistance under the HOME Investment Partnership 
     Act, for assistance from such jurisdiction; or
       ``(III) by any Federal agency or any State or local 
     government, for funding for the project from funds from any 
     other sources.

       ``(D) State agency involvement.--Assistance under this 
     paragraph may be provided only for projects for which the 
     applicable State agency responsible for health and human 
     services programs, and the applicable State agency designated 
     to administer or supervise the administration of the State 
     plan for medical assistance under title XIX of the Social 
     Security Act, have entered into such agreements as the 
     Secretary considers appropriate--
       ``(i) to identify the target populations to be served by 
     the project;
       ``(ii) to set forth methods for outreach and referral; and
       ``(iii) to make available appropriate services for tenants 
     of the project.
       ``(E) Use requirements.--In the case of any project for 
     which project rental assistance is provided under this 
     paragraph, the dwelling units assisted pursuant to 
     subparagraph (B) shall be operated for not less than 30 years 
     as supportive housing for persons with disabilities, in 
     accordance with the application for the project approved by 
     the Secretary, and such dwelling units shall, during such 
     period, be made available for occupancy only by persons and 
     households described in subparagraph (B)(iv).
       ``(F) Report.--Not later than 3 years after the date of the 
     enactment of this paragraph, and again 2 years thereafter, 
     the Secretary shall submit to Congress a report--
       ``(i) describing the assistance provided under this 
     paragraph;
       ``(ii) analyzing the effectiveness of such assistance, 
     including the effectiveness of such assistance compared to 
     the assistance program for capital advances set forth under 
     subsection (d)(1) (as in effect pursuant to the amendments 
     made by such Act); and
       ``(iii) making recommendations regarding future models for 
     assistance under this section.''.
       On page 28, line 20, strike ``(l)'' and all that follows 
     through ``Act)'' on line 21, and insert ``(k)''.
       On page 29, strike line 1, and all that follows through 
     page 30, line 23, and inserting the following:
       (B) in paragraph (2), by striking the first sentence, and 
     inserting the following: ``The term `person with 
     disabilities' means a household composed of one or more 
     persons who is 18 years of age or older and less than 62 
     years of age, and who has a disability.'';
       On page 31, line 23, strike ``(m)'' and all that follows 
     through ``Act)'' on line 24, and insert ``(l)''.
       On page 32, strike lines 7 through 24, and insert the 
     following:

     SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

       Subsection (m) of section 811 is amended to read as 
     follows:
       ``(m) Authorization of Appropriations.--There are 
     authorized to be appropriated for providing assistance 
     pursuant to this section $300,000,000 for each of fiscal 
     years 2011 through 2015.''.
       On page 33, strike lines 1 through 9.
       On page 33, line 10, strike ``SEC. 8.'' and insert ``SEC. 
     7.''.

  The committee amendments, as amended, were agreed to.
  The bill (S. 1481), as amended, was ordered to be engrossed for a 
third reading, was read the third time, and passed, as follows:

                                S. 1481

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

     SECTION 1. SHORT TITLE; REFERENCES.

       (a) Short Title.--This Act may be cited as the ``Frank 
     Melville Supportive Housing Investment Act of 2010''.
       (b) References.--Except as otherwise expressly provided, 
     wherever in this Act an amendment or repeal is expressed in 
     terms of an amendment to, or repeal of, section 811 or any 
     other provision of section 811, the reference shall be 
     considered to be made to section 811 of the Cranston-Gonzalez 
     National Affordable Housing Act (42 U.S.C. 8013).

     SEC. 2. TENANT-BASED RENTAL ASSISTANCE.

       (a) Renewal Through Section 8.--Section 811(d)(4) is 
     amended to read as follows:
       ``(4) Tenant-based rental assistance.--
       ``(A) In general.--Tenant-based rental assistance provided 
     under subsection (b)(1) shall be provided under section 8(o) 
     of the United States Housing Act of 1937 (42 U.S.C. 
     1437f(o)).
       ``(B) Conversion of existing assistance.--There is 
     authorized to be appropriated for tenant-based rental 
     assistance under section 8(o) of the United States Housing 
     Act of 1937 (42 U.S.C. 1437f(o)) for persons with 
     disabilities an amount not less than the amount necessary to 
     convert the number of authorized vouchers and funding under 
     an annual contributions contract in effect on the date of 
     enactment of the Frank Melville Supportive Housing Investment 
     Act of 2010. Such converted vouchers may be administered by 
     the entity administering the vouchers prior to conversion. 
     For purposes of administering such converted vouchers, such 
     entities shall be considered a `public housing agency' 
     authorized to engage in the operation of tenant-based 
     assistance under section 8 of the United States Housing Act 
     of 1937.
       ``(C) Requirements upon turnover.--The Secretary shall 
     develop and issue, to public housing agencies that receive 
     voucher assistance made available under this subsection and 
     to public housing agencies that received voucher assistance 
     under section 8(o) of the United States Housing Act of 1937 
     (42 U.S.C. 1437f(o)) for non-elderly disabled families 
     pursuant to appropriation Acts for fiscal years 1997 through 
     2002 or any other subsequent appropriations for incremental 
     vouchers for non-elderly disabled families, guidance to 
     ensure that, to the maximum extent possible, such vouchers 
     continue to be provided upon turnover to qualified persons 
     with disabilities or to qualified non-elderly disabled 
     families, respectively.''.
       (b) Provision of Technical Assistance.--The Secretary is 
     authorized to the extent amounts are made available in future 
     appropriations Acts, to provide technical assistance to 
     public housing agencies and other administering entities to 
     facilitate using vouchers to provide permanent supportive 
     housing for persons with disabilities, help States reduce 
     reliance on segregated restrictive settings for people with 
     disabilities to meet community care requirements, end chronic 
     homelessness, as ``chronically homeless'' is defined in 
     section 401 of the McKinney-Vento Homeless Assistance Act (42 
     U.S.C. 11361), and for other related purposes.

     SEC. 3. MODERNIZED CAPITAL ADVANCE PROGRAM.

       (a) Project Rental Assistance Contracts.--Section 811 is 
     amended--
       (1) in subsection (d)(2)--
       (A) by inserting ``(A) Initial project rental assistance 
     contract.--'' after ``Project rental assistance.--'';
       (B) in the first sentence, by inserting after ``shall'' the 
     following: ``comply with subsection (e)(2) and shall'';
       (C) by striking ``annual contract amount'' each place such 
     term appears and inserting ``amount provided under the 
     contract for each year covered by the contract''; and
       (D) by adding at the end the following new subparagraph:
       ``(B) Renewal of and increases in contract amounts.--
       ``(i) Expiration of contract term.--Upon the expiration of 
     each contract term, subject to the availability of amounts 
     made available in appropriation Acts, the Secretary shall 
     adjust the annual contract amount to

[[Page S10449]]

     provide for reasonable project costs, including adequate 
     reserves and service coordinators as appropriate, except that 
     any contract amounts not used by a project during a contract 
     term shall not be available for such adjustments upon 
     renewal.
       ``(ii) Emergency situations.--In the event of emergency 
     situations that are outside the control of the owner, the 
     Secretary shall increase the annual contract amount, subject 
     to reasonable review and limitations as the Secretary shall 
     provide.''.
       (2) in subsection (e)(2)--
       (A) in the first sentence, by inserting before the period 
     at the end the following: ``, except that, in the case of the 
     sponsor of a project assisted with any low-income housing tax 
     credit pursuant to section 42 of the Internal Revenue Code of 
     1986 or with any tax-exempt housing bonds, the contract shall 
     have an initial term of not less than 360 months and shall 
     provide funding for a term of 60 months''; and
       (B) by striking ``extend any expiring contract'' and insert 
     ``upon expiration of a contract (or any renewed contract), 
     renew such contract''.
       (b) Program Requirements.--Section 811 is amended--
       (1) in subsection (e)--
       (A) by striking the subsection heading and inserting the 
     following: ``Program Requirements'';
       (B) by striking paragraph (1) and inserting the following 
     new paragraph:
       ``(1) Use restrictions.--
       ``(A) Term.--Any project for which a capital advance is 
     provided under subsection (d)(1) shall be operated for not 
     less than 40 years as supportive housing for persons with 
     disabilities, in accordance with the application for the 
     project approved by the Secretary and shall, during such 
     period, be made available for occupancy only by very low-
     income persons with disabilities.
       ``(B) Conversion.--If the owner of a project requests the 
     use of the project for the direct benefit of very low-income 
     persons with disabilities and, pursuant to such request the 
     Secretary determines that a project is no longer needed for 
     use as supportive housing for persons with disabilities, the 
     Secretary may approve the request and authorize the owner to 
     convert the project to such use.''; and
       (C) by adding at the end the following new paragraphs:
       ``(3) Limitation on use of funds.--No assistance received 
     under this section (or any State or local government funds 
     used to supplement such assistance) may be used to replace 
     other State or local funds previously used, or designated for 
     use, to assist persons with disabilities.
       ``(4) Multifamily projects.--
       ``(A) Limitation.--Except as provided in subparagraph (B), 
     of the total number of dwelling units in any multifamily 
     housing project (including any condominium or cooperative 
     housing project) containing any unit for which assistance is 
     provided from a capital grant under subsection (d)(1) made 
     after the date of the enactment of the Frank Melville 
     Supportive Housing Investment Act of 2010, the aggregate 
     number that are used for persons with disabilities, including 
     supportive housing for persons with disabilities, or to which 
     any occupancy preference for persons with disabilities 
     applies, may not exceed 25 percent of such total.
       ``(B) Exception.--Subparagraph (A) shall not apply in the 
     case of any project that is a group home or independent 
     living facility.''; and
       (2) in subsection (l), by striking paragraph (4).
       (c) Delegated Processing.--Subsection (g) of section 811 
     (42 U.S.C. 8013(g)) is amended--
       (1) by striking ``Selection Criteria.--'' and inserting 
     ``Selection Criteria and Processing.--(1) Selection 
     criteria.--'';
       (2) by redesignating paragraphs (1), (2), (3), (4), (5), 
     (6), and (7) as subparagraphs (A), (B), (C), (D), (E), (G), 
     and (H), respectively; and
       (3) by adding at the end the following new paragraph:
       ``(2) Delegated Processing.--
       ``(A) In issuing a capital advance under subsection (d)(1) 
     for any multifamily project (but not including any project 
     that is a group home or independent living facility) for 
     which financing for the purposes described in the last 
     sentence of subsection (b) is provided by a combination of 
     the capital advance and sources other than this section, 
     within 30 days of award of the capital advance, the Secretary 
     shall delegate review and processing of such projects to a 
     State or local housing agency that--
       ``(i) is in geographic proximity to the property;
       ``(ii) has demonstrated experience in and capacity for 
     underwriting multifamily housing loans that provide housing 
     and supportive services;
       ``(iii) may or may not be providing low-income housing tax 
     credits in combination with the capital advance under this 
     section; and
       ``(iv) agrees to issue a firm commitment within 12 months 
     of delegation.
       ``(B) The Secretary shall retain the authority to process 
     capital advances in cases in which no State or local housing 
     agency is sufficiently qualified to provide delegated 
     processing pursuant to this paragraph or no such agency has 
     entered into an agreement with the Secretary to serve as a 
     delegated processing agency.
       ``(C) The Secretary shall--
       ``(i) develop criteria and a timeline to periodically 
     assess the performance of State and local housing agencies in 
     carrying out the duties delegated to such agencies pursuant 
     to subparagraph (A); and
       ``(ii) retain the authority to review and process projects 
     financed by a capital advance in the event that, after a 
     review and assessment, a State or local housing agency is 
     determined to have failed to satisfy the criteria established 
     pursuant to clause (i).
       ``(D) An agency to which review and processing is delegated 
     pursuant to subparagraph (A) may assess a reasonable fee 
     which shall be included in the capital advance amounts and 
     may recommend project rental assistance amounts in excess of 
     those initially awarded by the Secretary. The Secretary shall 
     develop a schedule for reasonable fees under this 
     subparagraph to be paid to delegated processing agencies, 
     which shall take into consideration any other fees to be paid 
     to the agency for other funding provided to the project by 
     the agency, including bonds, tax credits, and other gap 
     funding.
       ``(E) Under such delegated system, the Secretary shall 
     retain the authority to approve rents and development costs 
     and to execute a capital advance within 60 days of receipt of 
     the commitment from the State or local agency. The Secretary 
     shall provide to such agency and the project sponsor, in 
     writing, the reasons for any reduction in capital advance 
     amounts or project rental assistance and such reductions 
     shall be subject to appeal.''.
       (d) Leveraging Other Resources.--Paragraph (1) of section 
     811(g) (as so designated by subsection (c)(1) of this 
     section) is amended by inserting after subparagraph (E) (as 
     so redesignated by subsection (c)(2) of this section) the 
     following new subparagraph:
       ``(F) the extent to which the per-unit cost of units to be 
     assisted under this section will be supplemented with 
     resources from other public and private sources;''.
       (e) Tenant Protections and Eligibility for Occupancy.--
     Section 811 is amended by striking subsection (i) and 
     inserting the following new subsection:
       ``(i) Admission and Occupancy.--
       ``(1) Tenant selection.--
       ``(A) Procedures.--An owner shall adopt written tenant 
     selection procedures that are satisfactory to the Secretary 
     as (i) consistent with the purpose of improving housing 
     opportunities for very low-income persons with disabilities; 
     and (ii) reasonably related to program eligibility and an 
     applicant's ability to perform the obligations of the lease. 
     Owners shall promptly notify in writing any rejected 
     applicant of the grounds for any rejection.
       ``(B) Requirement for occupancy.--Occupancy in dwelling 
     units provided assistance under this section shall be 
     available only to persons with disabilities and households 
     that include at least one person with a disability.
       ``(C) Availability.--Except only as provided in 
     subparagraph (D), occupancy in dwelling units in housing 
     provided with assistance under this section shall be 
     available to all persons with disabilities eligible for such 
     occupancy without regard to the particular disability 
     involved.
       ``(D) Limitation on occupancy.--Notwithstanding any other 
     provision of law, the owner of housing developed under this 
     section may, with the approval of the Secretary, limit 
     occupancy within the housing to persons with disabilities who 
     can benefit from the supportive services offered in 
     connection with the housing.
       ``(2) Tenant protections.--
       ``(A) Lease.--The lease between a tenant and an owner of 
     housing assisted under this section shall be for not less 
     than one year, and shall contain such terms and conditions as 
     the Secretary shall determine to be appropriate.
       ``(B) Termination of tenancy.--An owner may not terminate 
     the tenancy or refuse to renew the lease of a tenant of a 
     rental dwelling unit assisted under this section except--
       ``(i) for serious or repeated violation of the terms and 
     conditions of the lease, for violation of applicable Federal, 
     State, or local law, or for other good cause; and
       ``(ii) by providing the tenant, not less than 30 days 
     before such termination or refusal to renew, with written 
     notice specifying the grounds for such action.
       ``(C) Voluntary participation in services.--A supportive 
     service plan for housing assisted under this section shall 
     permit each resident to take responsibility for choosing and 
     acquiring their own services, to receive any supportive 
     services made available directly or indirectly by the owner 
     of such housing, or to not receive any supportive 
     services.''.
       (f) Development Cost Limitations.--Subsection (h) of 
     section 811 is amended--
       (1) in paragraph (1)--
       (A) by striking the paragraph heading and inserting ``Group 
     homes'';
       (B) in the first sentence, by striking ``various types and 
     sizes'' and inserting ``group homes'';
       (C) by striking subparagraph (E); and
       (D) by redesignating subparagraphs (F) and (G) as 
     subparagraphs (E) and (F), respectively;
       (2) in paragraph (3), by inserting ``established pursuant 
     to paragraph (1)'' after ``cost limitation''; and
       (3) by adding at the end the following new paragraph:
       ``(6) Applicability of home program cost limitations.--
       ``(A) In general.--The provisions of section 212(e) of the 
     Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
     12742(e))

[[Page S10450]]

     and the cost limits established by the Secretary pursuant to 
     such section with respect to the amount of funds under 
     subtitle A of title II of such Act that may be invested on a 
     per unit basis, shall apply to supportive housing assisted 
     with a capital advance under subsection (d)(1) and the amount 
     of funds under such subsection that may be invested on a per 
     unit basis.
       ``(B) Waivers.--The Secretary may provide for waiver of the 
     cost limits applicable pursuant to subparagraph (A)--
       ``(i) in the cases in which the cost limits established 
     pursuant to section 212(e) of the Cranston-Gonzalez National 
     Affordable Housing Act may be waived; and
       ``(ii) to provide for--

       ``(I) the cost of special design features to make the 
     housing accessible to persons with disabilities;
       ``(II) the cost of special design features necessary to 
     make individual dwelling units meet the special needs of 
     persons with disabilities; and
       ``(III) the cost of providing the housing in a location 
     that is accessible to public transportation and community 
     organizations that provide supportive services to persons 
     with disabilities.''.

       (g) Congressional Notification of Waiver.--Section 811(k) 
     is amended--
       (1) in paragraph (1), by adding the following after the 
     second sentence: ``Not later than the date of the exercise of 
     any waiver permitted under the previous sentence, the 
     Secretary shall notify the Committee on Banking, Housing, and 
     Urban Affairs of the Senate and the Committee on Financial 
     Services of the House of Representatives of the waiver or the 
     intention to exercise the waiver, together with a detailed 
     explanation of the reason for the waiver.''; and
       (2) in paragraph (4)--
       (A) by striking ``prescribe, subject to the limitation 
     under subsection (h)(6) of this section)'' and inserting 
     ``prescribe)''; and
       (B) by adding the following after the first sentence: ``Not 
     later than the date that the Secretary prescribes a limit 
     exceeding the 24 person limit in the previous sentence, the 
     Secretary shall notify the Committee on Banking, Housing, and 
     Urban Affairs of the Senate and the Committee on Financial 
     Services of the House of Representatives of the limit or the 
     intention to prescribe a limit in excess of 24 persons, 
     together with a detailed explanation of the reason for the 
     new limit.''.
       (h) Minimum Allocation for Multifamily Projects.--Paragraph 
     (1) of section 811(l) is amended to read as follows:
       ``(1) Minimum allocation for multifamily projects.--The 
     Secretary shall establish a minimum percentage of the amount 
     made available for each fiscal year for capital advances 
     under subsection (d)(1) that shall be used for multifamily 
     projects subject to subsection (e)(4).''.

     SEC. 4. PROJECT RENTAL ASSISTANCE.

       Section 811(b) is amended--
       (1) in the matter preceding paragraph (1), by striking ``is 
     authorized--'' and inserting ``is authorized to take the 
     following actions:'';
       (2) in paragraph (1)--
       (A) by striking ``(1) to provide tenant-based'' and 
     inserting ``(1) Tenant-based assistance.--To provide tenant-
     based''; and
       (B) by striking ``; and'' and inserting a period;
       (3) in paragraph (2), by striking ``(2) to provide 
     assistance'' and inserting ``(2) Capital advances.--To 
     provide assistance''; and
       (4) by adding at the end the following:
       ``(3) Project rental assistance.--
       ``(A) In general.--To offer additional methods of financing 
     supportive housing for non-elderly adults with disabilities, 
     the Secretary shall make funds available for project rental 
     assistance pursuant to subparagraph (B) for eligible projects 
     under subparagraph (C). The Secretary shall provide for State 
     housing finance agencies and other appropriate entities to 
     apply to the Secretary for such project rental assistance 
     funds, which shall be made available by such agencies and 
     entities for dwelling units in eligible projects based upon 
     criteria established by the Secretary. The Secretary may not 
     require any State housing finance agency or other entity 
     applying for such project rental assistance funds to identify 
     in such application the eligible projects for which such 
     funds will be used, and shall allow such agencies and 
     applicants to subsequently identify such eligible projects 
     pursuant to the making of commitments described in 
     subparagraph (C)(ii).
       ``(B) Contract terms.--
       ``(i) Contract terms.--Project rental assistance under this 
     paragraph shall be provided--

       ``(I) in accordance with subsection (d)(2); and
       ``(II) under a contract having an initial term of not less 
     than 180 months that provides funding for a term 60 months, 
     which funding shall be renewed upon expiration, subject to 
     the availability of sufficient amounts in appropriation Acts.

       ``(ii) Limitation on units assisted.--Of the total number 
     of dwelling units in any multifamily housing project 
     containing any unit for which project rental assistance under 
     this paragraph is provided, the aggregate number that are 
     provided such project rental assistance, that are used for 
     supportive housing for persons with disabilities, or to which 
     any occupancy preference for persons with disabilities 
     applies, may not exceed 25 percent of such total.
       ``(iii) Prohibition of capital advances.--The Secretary may 
     not provide a capital advance under subsection (d)(1) for any 
     project for which assistance is provided under this 
     paragraph.
       ``(iv) Eligible population.--Project rental assistance 
     under this paragraph may be provided only for dwelling units 
     for extremely low-income persons with disabilities and 
     extremely low-income households that include at least one 
     person with a disability.
       ``(C) Eligible projects.--An eligible project under this 
     subparagraph is a new or existing multifamily housing project 
     for which--
       ``(i) the development costs are paid with resources from 
     other public or private sources; and
       ``(ii) a commitment has been made--

       ``(I) by the applicable State agency responsible for 
     allocation of low-income housing tax credits under section 42 
     of the Internal Revenue Code of 1986, for an allocation of 
     such credits;
       ``(II) by the applicable participating jurisdiction that 
     receives assistance under the HOME Investment Partnership 
     Act, for assistance from such jurisdiction; or
       ``(III) by any Federal agency or any State or local 
     government, for funding for the project from funds from any 
     other sources.

       ``(D) State agency involvement.--Assistance under this 
     paragraph may be provided only for projects for which the 
     applicable State agency responsible for health and human 
     services programs, and the applicable State agency designated 
     to administer or supervise the administration of the State 
     plan for medical assistance under title XIX of the Social 
     Security Act, have entered into such agreements as the 
     Secretary considers appropriate--
       ``(i) to identify the target populations to be served by 
     the project;
       ``(ii) to set forth methods for outreach and referral; and
       ``(iii) to make available appropriate services for tenants 
     of the project.
       ``(E) Use requirements.--In the case of any project for 
     which project rental assistance is provided under this 
     paragraph, the dwelling units assisted pursuant to 
     subparagraph (B) shall be operated for not less than 30 years 
     as supportive housing for persons with disabilities, in 
     accordance with the application for the project approved by 
     the Secretary, and such dwelling units shall, during such 
     period, be made available for occupancy only by persons and 
     households described in subparagraph (B)(iv).
       ``(F) Report.--Not later than 3 years after the date of the 
     enactment of this paragraph, and again 2 years thereafter, 
     the Secretary shall submit to Congress a report--
       ``(i) describing the assistance provided under this 
     paragraph;
       ``(ii) analyzing the effectiveness of such assistance, 
     including the effectiveness of such assistance compared to 
     the assistance program for capital advances set forth under 
     subsection (d)(1) (as in effect pursuant to the amendments 
     made by such Act); and
       ``(iii) making recommendations regarding future models for 
     assistance under this section.''.

     SEC. 5. TECHNICAL CORRECTIONS.

       Section 811 is amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``and'' at the end;
       (B) in paragraph (2)--
       (i) by striking ``provides'' and inserting ``makes 
     available''; and
       (ii) by striking the period at the end and inserting ``; 
     and''; and
       (C) by adding at the end the following new paragraph:
       ``(3) promotes and facilitates community integration for 
     people with significant and long-term disabilities.'';
       (2) in subsection (c)--
       (A) in paragraph (1), by striking ``special'' and inserting 
     ``housing and community-based services''; and
       (B) in paragraph (2)--
       (i) by striking subparagraph (A) and inserting the 
     following:
       ``(A) make available voluntary supportive services that 
     address the individual needs of persons with disabilities 
     occupying such housing;''; and
       (ii) in subparagraph (B), by striking the comma and 
     inserting a semicolon;
       (3) in subsection (d)(1), by striking ``provided under'' 
     and all that follows through ``shall bear'' and inserting 
     ``provided pursuant to subsection (b)(1) shall bear'';
       (4) in subsection (f)--
       (A) in paragraph (3)--
       (i) in subparagraph (B), by striking ``receive'' and 
     inserting ``be offered'';
       (ii) by striking subparagraph (C) and inserting the 
     following:
       ``(C) evidence of the applicant's experience in--
       ``(i) providing such supportive services; or
       ``(ii) creating and managing structured partnerships with 
     service providers for the delivery of appropriate community-
     based services;'';
       (iii) in subparagraph (D), by striking ``such persons'' and 
     all that follows through ``provision of such services'' and 
     inserting ``tenants''; and
       (iv) in subparagraph (E), by inserting ``other Federal, 
     and'' before ``State''; and
       (B) in paragraph (4), by striking ``special'' and inserting 
     ``housing and community-based services'';
       (5) in subsection (g), in paragraph (1) (as so redesignated 
     by section 3(c)(1) of this Act)--

[[Page S10451]]

       (A) in subparagraph (D) (as so redesignated by section 
     3(c)(2) of this Act), by striking ``the necessary supportive 
     services will be provided'' and inserting ``appropriate 
     supportive services will be made available''; and
       (B) by striking subparagraph (E) (as so redesignated by 
     section 3(c)(2) of this Act) and inserting the following:
       ``(E) the extent to which the location and design of the 
     proposed project will facilitate the provision of community-
     based supportive services and address other basic needs of 
     persons with disabilities, including access to appropriate 
     and accessible transportation, access to community services 
     agencies, public facilities, and shopping;'';
       (6) in subsection (j)--
       (A) by striking paragraph (4); and
       (B) by redesignating paragraphs (5), (6), and (7) as 
     paragraphs (4), (5), and (6), respectively;
       (7) in subsection (k)--
       (A) in paragraph (1), by inserting before the period at the 
     end of the first sentence the following: ``, which provides a 
     separate bedroom for each tenant of the residence'';
       (B) in paragraph (2), by striking the first sentence, and 
     inserting the following: ``The term `person with 
     disabilities' means a household composed of one or more 
     persons who is 18 years of age or older and less than 62 
     years of age, and who has a disability.'';
       (C) by striking paragraph (3) and inserting the following 
     new paragraph:
       ``(3) The term `supportive housing for persons with 
     disabilities' means dwelling units that--
       ``(A) are designed to meet the permanent housing needs of 
     very low-income persons with disabilities; and
       ``(B) are located in housing that make available supportive 
     services that address the individual health, mental health, 
     or other needs of such persons.'';
       (D) in paragraph (5), by striking ``a project for''; and
       (E) in paragraph (6)--
       (i) by inserting after and below subparagraph (D) the 
     matter to be inserted by the amendment made by section 841 of 
     the American Homeownership and Economic Opportunity Act of 
     2000 (Public Law 106-569; 114 Stat. 3022); and
       (ii) in the matter inserted by the amendment made by 
     subparagraph (A) of this paragraph, by striking ``wholly 
     owned and''; and
       (8) in subsection (l)--
       (A) in paragraph (2), by striking ``subsection (c)(1)'' and 
     inserting ``subsection (d)(1)''; and
       (B) in paragraph (3), by striking ``subsection (c)(2)'' and 
     inserting ``subsection (d)(2)''.

     SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

       Subsection (m) of section 811 is amended to read as 
     follows:
       ``(m) Authorization of Appropriations.--There are 
     authorized to be appropriated for providing assistance 
     pursuant to this section $300,000,000 for each of fiscal 
     years 2011 through 2015.''.

     SEC. 7. GAO STUDY.

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

     Upon the completion of the study required under this section, 
     the Comptroller General shall submit a report to the Congress 
     setting forth the findings and conclusions of the study.

  The PRESIDING OFFICER. The Senator from New Mexico.

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