[Congressional Record Volume 156, Number 169 (Saturday, December 18, 2010)]
[Senate]
[Pages S10698-S10703]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




       SECTION 202 SUPPORTIVE HOUSING FOR THE ELDERLY ACT OF 2009

  Mr. BROWN of Ohio. Mr. President, I ask unanimous consent that the 
Senate proceed to the immediate consideration of Calendar No. 657, S. 
118.
  The PRESIDING OFFICER. The clerk will report the bill by title.
  The bill clerk read as follows:

       A bill (S. 118) to amend section 202 of the Housing Act of 
     1959, to improve the program under such section for 
     supportive housing for the elderly, and for other purposes.

  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 an amendment to strike all after the enacting 
clause and insert in lieu thereof the following:

     SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Section 
     202 Supportive Housing for the Elderly Act of 2010''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title and table of contents.

                   TITLE I--NEW CONSTRUCTION REFORMS

Sec. 101. Selection criteria.
Sec. 102. Development cost limitations.
Sec. 103. Owner deposits.
Sec. 104. Definition of private nonprofit organization.
Sec. 105. Nonmetropolitan allocation.

                         TITLE II--REFINANCING

Sec. 201. Approval of prepayment of debt.
Sec. 202. Use of unexpended amounts.
Sec. 203. Use of project residual receipts.
Sec. 204. Additional provisions.

   TITLE III--ASSISTED LIVING FACILITIES AND SERVICE-ENRICHED HOUSING

Sec. 301. Amendments to the grants for conversion of elderly housing to 
              assisted living facilities.
Sec. 302. Monthly assistance payment under rental assistance.

            TITLE IV--NATIONAL SENIOR HOUSING CLEARINGHOUSE

Sec. 401. National senior housing clearinghouse.

                   TITLE I--NEW CONSTRUCTION REFORMS

     SEC. 101. SELECTION CRITERIA.

       Section 202(f)(1) of the Housing Act of 1959 (12 U.S.C. 
     1701q(f)(1)) is amended--
       (1) by redesignating subparagraphs (F) and (G) as 
     subparagraphs (G) and (H), respectively; and
       (2) by inserting after subparagraph (E) the following new 
     subparagraph:
       ``(F) the extent to which the applicant has ensured that a 
     service coordinator will be employed or otherwise retained 
     for the housing, who has the managerial capacity and 
     responsibility for carrying out the actions described in 
     subparagraphs (A) and (B) of subsection (g)(2);''.

     SEC. 102. DEVELOPMENT COST LIMITATIONS.

       Section 202(h)(1) of the Housing Act of 1959 (12 U.S.C. 
     1701q(h)(1)) is amended, in the matter preceding subparagraph 
     (A), by inserting ``reasonable'' before ``development cost 
     limitations''.

     SEC. 103. OWNER DEPOSITS.

       Section 202(j)(3)(A) of the Housing Act of 1959 (12 U.S.C. 
     1701q(j)(3)(A)) is amended by inserting after the period at 
     the end the following: ``Such amount shall be used only to 
     cover operating deficits during the first 3 years of 
     operations and shall not be used to cover construction 
     shortfalls or inadequate initial project rental assistance 
     amounts.''.

     SEC. 104. DEFINITION OF PRIVATE NONPROFIT ORGANIZATION.

       Section 202(k)(4) of the Housing Act of 1959 (12 U.S.C. 
     1701q(k)(4)) is amended to read as follows:
       ``(4) The term `private nonprofit organization' means--
       ``(A) any incorporated private institution or foundation--
       ``(i) no part of the net earnings of which inures to the 
     benefit of any member, founder, contributor, or individual;
       ``(ii) which has a governing board--

       ``(I) the membership of which is selected in a manner to 
     assure that there is significant representation of the views 
     of the community in which such housing is located; and
       ``(II) which is responsible for the operation of the 
     housing assisted under this section, except that, in the case 
     of a nonprofit organization that is the sponsoring 
     organization of multiple housing projects assisted under this 
     section, the Secretary may determine the criteria or 
     conditions under which financial, compliance and other 
     administrative responsibilities exercised by a single-entity 
     private nonprofit organization that is the owner corporation 
     responsible for the operation of an individual housing 
     project may be shared or transferred to the governing board 
     of such sponsoring organization; and

       ``(iii) which is approved by the Secretary as to financial 
     responsibility; and
       ``(B) a for-profit limited partnership the sole general 
     partner of which is--
       ``(i) an organization meeting the requirements under 
     subparagraph (A);
       ``(ii) a for-profit corporation wholly owned and controlled 
     by one or more organizations meeting the requirements under 
     subparagraph (A); or
       ``(iii) a limited liability company wholly owned and 
     controlled by one or more organizations meeting the 
     requirements under subparagraph (A).''.

     SEC. 105. NONMETROPOLITAN ALLOCATION.

       Paragraph (3) of section 202(l) of the Housing Act of 1959 
     (12 U.S.C. 1701q(l)(3)) is amended by inserting after the 
     period at the end the following: ``In complying with this 
     paragraph, the Secretary shall either operate a national 
     competition for the nonmetropolitan funds or make allocations 
     to regional offices of the Department of Housing and Urban 
     Development.''.

                         TITLE II--REFINANCING

     SEC. 201. APPROVAL OF PREPAYMENT OF DEBT.

       Subsection (a) of section 811 of the American Homeownership 
     and Economic Opportunity Act of 2000 (12 U.S.C. 1701q note) 
     is amended--
       (1) in the matter preceding paragraph (1), by inserting ``, 
     for which the Secretary's consent to prepayment is 
     required,'' after ``Affordable Housing Act)'';
       (2) in paragraph (1)--
       (A) by inserting ``at least 20 years following'' before 
     ``the maturity date'';
       (B) by inserting ``project-based'' before ``rental 
     assistance payments contract'';
       (C) by inserting ``project-based'' before ``rental housing 
     assistance programs''; and
       (D) by inserting ``, or any successor project-based rental 
     assistance program,'' after ``1701s))'';
       (3) by amending paragraph (2) to read as follows:
       ``(2) the prepayment may involve refinancing of the loan if 
     such refinancing results in--
       ``(A) a lower interest rate on the principal of the loan 
     for the project and in reductions in debt service related to 
     such loan; or
       ``(B) a transaction in which the project owner will address 
     the physical needs of the project, but only if, as a result 
     of the refinancing--
       ``(i) the rent charges for unassisted families residing in 
     the project do not increase or such families are provided 
     rental assistance under a senior preservation rental 
     assistance contract for the project pursuant to subsection 
     (e); and
       ``(ii) the overall cost for providing rental assistance 
     under section 8 for the project (if any) is not increased, 
     except, upon approval by the Secretary to--

       ``(I) mark-up-to-market contracts pursuant to section 
     524(a)(3) of the Multifamily Assisted Housing Reform and 
     Affordability Act (42 U.S.C. 1437f note), as such section is 
     carried out by the Secretary for properties owned by 
     nonprofit organizations; or
       ``(II) mark-up-to-budget contracts pursuant to section 
     524(a)(4) of the Multifamily Assisted Housing Reform and 
     Affordability Act (42 U.S.C. 1437f note), as such section is 
     carried out by the Secretary for properties owned by eligible 
     owners (as such term is defined in section 202(k) of the 
     Housing Act of 1959 (12 U.S.C. 1701q(k)); and''; and

       (4) by adding at the end the following:
       ``(3) notwithstanding paragraph (2)(A), the prepayment and 
     refinancing authorized pursuant to paragraph (2)(B) involves 
     an increase in debt service only in the case of a refinancing 
     of a project assisted with a loan under such section 202 
     carrying an interest rate of 6 percent or lower.''.

     SEC. 202. USE OF UNEXPENDED AMOUNTS.

       Subsection (c) of section 811 of the American Homeownership 
     and Economic Opportunity Act of 2000 (12 U.S.C. 1701q note) 
     is amended--
       (1) by striking ``Use of Unexpended Amounts.--'' and 
     inserting ``Use of Proceeds.--'';
       (2) by amending the matter preceding paragraph (1) to read 
     as follows: ``Upon execution of the refinancing for a project 
     pursuant to this section, the Secretary shall ensure that 
     proceeds are used in a manner advantageous to tenants of the 
     project, or are used in the provision of affordable rental 
     housing and related social services for elderly persons that 
     are tenants of the project or are tenants of other HUD-
     assisted senior housing by the private nonprofit organization 
     project owner, private nonprofit organization project 
     sponsor, or private nonprofit organization project developer, 
     including--'';
       (3) by amending paragraph (1) to read as follows:

[[Page S10699]]

       ``(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, except that upon the request of the non-
     profit owner, sponsor, or organization and determination of 
     the Secretary, such 15 percent limitation may be waived to 
     ensure that the use of unexpended amounts better enables 
     seniors to age in place;'';
       (4) in paragraph (2), by inserting before the semicolon the 
     following; ``, including reducing the number of units by 
     reconfiguring units that are functionally obsolete, 
     unmarketable, or not economically viable'';
       (5) in paragraph (3), by striking ``or'' at the end;
       (6) in paragraph (4), by striking ``according to a pro rata 
     allocation of shared savings resulting from the 
     refinancing.'' and inserting a semicolon; and
       (7) by adding at the end the following new paragraphs:
       ``(5) rehabilitation of the project to ensure long-term 
     viability; and
       ``(6) the payment to the project owner, sponsor, or third 
     party developer of a developer's fee in an amount not to 
     exceed or duplicate--
       ``(A) in the case of a project refinanced through a State 
     low income housing tax credit program, the fee permitted by 
     the low income housing tax credit program as calculated by 
     the State program as a percentage of acceptable development 
     cost as defined by that State program; or
       ``(B) in the case of a project refinanced through any other 
     source of refinancing, 15 percent of the acceptable 
     development cost.

     For purposes of paragraph (6)(B), the term `acceptable 
     development cost' shall include, as applicable, the cost of 
     acquisition, rehabilitation, loan prepayment, initial reserve 
     deposits, and transaction costs.''.

     SEC. 203. USE OF PROJECT RESIDUAL RECEIPTS.

       Paragraph (1) of section 811(d) of the American 
     Homeownership and Economic Opportunity Act of 2000 (12 U.S.C. 
     1701q note) is amended--
       (1) by striking ``not more than 15 percent of''; and
       (2) by inserting before the period at the end the 
     following: ``or other purposes approved by the Secretary''.

     SEC. 204. ADDITIONAL PROVISIONS.

       Section 811 of the American Homeownership and Economic 
     Opportunity Act of 2000 (12 U.S.C. 1701q note) is amended by 
     adding at the end the following new subsections:
       ``(e) Senior Preservation Rental Assistance Contracts.--
     Notwithstanding any other provision of law, in connection 
     with a prepayment plan for a project approved under 
     subsection (a) by the Secretary or as otherwise approved by 
     the Secretary to prevent displacement of elderly residents of 
     the project in the case of refinancing or recapitalization 
     and to further preservation and affordability of such 
     project, the Secretary shall provide project-based rental 
     assistance for the project under a senior preservation rental 
     assistance contract, as follows:
       ``(1) Assistance under the contract shall be made available 
     to the private nonprofit organization owner--
       ``(A) for a term of at least 20 years, subject to annual 
     appropriations; and
       ``(B) under the same rules governing project-based rental 
     assistance made available under section 8 of the Housing Act 
     of 1937 or under the rules of such assistance as may be made 
     available for the project.
       ``(2) Any projects for which a senior preservation rental 
     assistance contract is provided shall be subject to a use 
     agreement to ensure continued project affordability having a 
     term of the longer of (A) the term of the senior preservation 
     rental assistance contract, or (B) such term as is required 
     by the new financing.
       ``(f) Subordination or Assumption of Existing Debt.--In 
     lieu of prepayment under this section of the indebtedness 
     with respect to a project, the Secretary may approve--
       ``(1) in connection with new financing for the project, the 
     subordination of the loan for the project under section 202 
     of the Housing Act of 1959 (as in effect before the enactment 
     of the Cranston-Gonzalez National Affordable Housing Act) and 
     the continued subordination of any other existing subordinate 
     debt previously approved by the Secretary to facilitate 
     preservation of the project as affordable housing; or
       ``(2) the assumption (which may include the subordination 
     described in paragraph (1)) of the loan for the project under 
     such section 202 in connection with the transfer of the 
     project with such a loan to a private nonprofit organization.
       ``(g) Flexible Subsidy Debt.--The Secretary shall waive the 
     requirement that debt for a project pursuant to the flexible 
     subsidy program under section 201 of the Housing and 
     Community Development Amendments of 1978 (12 U.S.C. 1715z-1a) 
     be prepaid in connection with a prepayment, refinancing, or 
     transfer under this section of a project if the financial 
     transaction or refinancing cannot be completed without the 
     waiver.
       ``(h) Tenant Involvement in Prepayment and Refinancing.--
     The Secretary shall not accept an offer to prepay the loan 
     for any project under section 202 of the Housing Act of 1959 
     unless the Secretary--
       ``(1) has determined that the owner of the project has 
     notified the tenants of the owner's request for approval of a 
     prepayment; and
       ``(2) has determined that the owner of the project has 
     provided the tenants with an opportunity to comment on the 
     owner's request for approval of a prepayment, including on 
     the description of any anticipated rehabilitation or other 
     use of the proceeds from the transaction, and its impacts on 
     project rents, tenant contributions, or the affordability 
     restrictions for the project, and that the owner has 
     responded to such comments in writing.
       ``(i) Definition of Private Nonprofit Organization.--For 
     purposes of this section, the term `private nonprofit 
     organization' has the meaning given such term in section 
     202(k) of the Housing Act of 1959 (12 U.S.C. 1701q(k)).''.

   TITLE III--ASSISTED LIVING FACILITIES AND SERVICE-ENRICHED HOUSING

     SEC. 301. AMENDMENTS TO THE GRANTS FOR CONVERSION OF ELDERLY 
                   HOUSING TO ASSISTED LIVING FACILITIES.

       (a) Technical Amendment.--The section heading for section 
     202b of the Housing Act of 1959 (12 U.S.C. 1701q-2) is 
     amended by inserting ``AND OTHER PURPOSES'' after ``ASSISTED 
     LIVING FACILITIES''.
       (b) Extension of Grant Authority.--Section 202b(a)(2) of 
     the Housing Act of 1959 (12 U.S.C. 1701q-2(a)(2)) is 
     amended--
       (1) by striking ``(2) Conversion.--Activities'' and 
     inserting the following:
       ``(2) Conversion.--
       ``(A) Assisted living facilities.--Activities''; and
       (2) by adding at the end the following:
       ``(B) Service-enriched housing.--Activities designed to 
     convert dwelling units in the eligible project to service-
     enriched housing for elderly persons.''.
       (c) Amendment to Application Process.--Section 202b(c)(1) 
     of the Housing Act of 1959 (12 U.S.C. 1701q-2(c)(1)) is 
     amended by inserting ``for either an assisted living facility 
     or service-enriched housing'' after ``activities''.
       (d) Requirements for Services.--Section 202b(d) of the 
     Housing Act of 1959 (12 U.S.C. 1701q-2(d)) is amended to read 
     as follows:
       ``(d) Requirements for Services.--
       ``(1) Sufficient evidence of firm funding commitments.--The 
     Secretary may not make a grant under this section for 
     conversion activities unless an application for a grant 
     submitted pursuant to subsection (c) contains sufficient 
     evidence, in the determination of the Secretary, of firm 
     commitments for the funding of services to be provided in the 
     assisted living facility or service-enriched housing, which 
     may be provided by third parties.
       ``(2) Required evidence.--The Secretary shall require 
     evidence that each recipient of a grant for service-enriched 
     housing under this section provides relevant and timely 
     disclosure of information to residents or potential residents 
     of such housing relating to--
       ``(A) the services that will be available at the property 
     to each resident, including--
       ``(i) the right to accept, decline, or choose such services 
     and to have the choice of provider;
       ``(ii) the services made available by or contracted through 
     the grantee;
       ``(iii) the identity of, and relevant information for, all 
     agencies or organizations providing any services to 
     residents, which agencies or organizations shall provide 
     information regarding all procedures and requirements to 
     obtain services, any charges or rates for the services, and 
     the rights and responsibilities of the residents related to 
     those services;
       ``(B) the availability, identity, contact information, and 
     role of the service coordinator; and
       ``(C) such other information as the Secretary determines to 
     be appropriate to ensure that residents are adequately 
     informed of the services options available to promote 
     resident independence and quality of life.''.
       (e) Amendments to Selection Criteria.--Section 202b(e) of 
     the Housing Act of 1959 (12 U.S.C. 1701q-2(e)) is amended--
       (1) in paragraph (2)--
       (A) by inserting ``or service-enriched housing'' after 
     ``facilities''; and
       (B) by inserting ``service-enriched housing'' after 
     ``facility'';
       (2) in paragraph (5), by inserting ``or service-enriched 
     housing'' after ``facility''; and
       (3) in paragraph (6), by inserting ``or service-enriched 
     housing'' after ``facility''.
       (f) Amendments to Section 8 Project-based Assistance.--
     Section 202b(f) of the Housing Act of 1959 (12 U.S.C. 1701q-
     2(f)) is amended--
       (1) in paragraph (1), by inserting ``or service-enriched 
     housing'' after ``facilities'' each time that term appears; 
     and
       (2) in paragraph (2), by inserting ``or service-enriched 
     housing'' after ``facility''.
       (g) Amendments to Definitions.--Section 202b(g) of the 
     Housing Act of 1959 (12 U.S.C. 1701q-2(g)) is amended to read 
     as follows:
       ``(g) Definitions.--For purposes of this section--
       ``(1) the term `assisted living facility' has the meaning 
     given such term in section 232(b) of the National Housing Act 
     (1715w(b));
       ``(2) the term `service-enriched housing' means housing 
     that--
       ``(A) makes available through licensed or certified third 
     party service providers supportive services to assist the 
     residents in carrying out activities of daily living, such as 
     bathing, dressing, eating, getting in and out of bed or 
     chairs, walking, going outdoors, using the toilet, laundry, 
     home management, preparing meals, shopping for personal 
     items, obtaining and taking medication, managing money, using 
     the telephone, or performing light or heavy housework, and 
     which may make available to residents home health care 
     services, such as nursing and therapy;
       ``(B) includes the position of service coordinator, which 
     may be funded as an operating expense of the property; ;
       ``(C) provides separate dwelling units for residents, each 
     of which contains a full kitchen and bathroom and which 
     includes common rooms and other facilities appropriate for 
     the provision of supportive services to the residents of the 
     housing; and
       ``(D) provides residents with control over health care and 
     supportive services decisions, including the right to accept, 
     decline, or choose such services, and to have the choice of 
     provider; and

[[Page S10700]]

       ``(3) the definitions in section 1701(q)(k) of this title 
     shall apply.''.

     SEC. 302. MONTHLY ASSISTANCE PAYMENT UNDER RENTAL ASSISTANCE.

       Clause (iii) of section 8(o)(18)(B) of the United States 
     Housing Act of 1937 (42 U.S.C. 1437f(o)(18)(B)(iii)) is 
     amended by inserting before the period at the end the 
     following: ``, except that a family may be required at the 
     time the family initially receives such assistance to pay 
     rent in an amount exceeding 40 percent of the monthly 
     adjusted income of the family by such an amount or percentage 
     that is reasonable given the services and amenities provided 
     and as the Secretary deems appropriate.''.

            TITLE IV--NATIONAL SENIOR HOUSING CLEARINGHOUSE

     SEC. 401. NATIONAL SENIOR HOUSING CLEARINGHOUSE.

       (a) Establishment.--Not later than 360 days after the date 
     of enactment of this Act, the Secretary of Housing and Urban 
     Development shall establish and operate a clearinghouse to 
     serve as a national repository to receive, collect, process, 
     assemble, and disseminate information regarding the 
     availability and quality of multifamily developments for 
     elderly tenants, including--
       (1) the availability of--
       (A) supportive housing for the elderly pursuant to section 
     202 of the Housing Act of 1959 (12 U.S.C. 1701q), including 
     any housing unit assisted with a project rental assistance 
     contract under such section;
       (B) properties and units eligible for assistance under 
     section 8 of the United States Housing Act of 1937 (42 U.S.C. 
     1437f);
       (C) properties eligible for the low-income housing tax 
     credit under section 42 of the Internal Revenue Code of 1986;
       (D) units in assisted living facilities insured pursuant to 
     section 221(d)(4) of the National Housing Act (12 U.S.C. 
     1715l(d)(4));
       (E) units in any multifamily project that has been 
     converted into an assisted living facility for elderly 
     persons pursuant to section 202b of the Housing Act of 1959 
     (12 U.S.C. 1701q-2); and
       (F) any other federally assisted or subsidized housing for 
     the elderly;
       (2) the number of available units in each property, 
     project, or facility described in paragraph (1);
       (3) the number of bedrooms in each available unit in each 
     property, project, or facility described in paragraph (1);
       (4) the estimated cost to a potential tenant to rent or 
     reside in each available unit in each property, project, or 
     facility described in paragraph (1);
       (5) the presence of a waiting list for entry into any 
     available unit in each property, project, or facility 
     described in paragraph (1);
       (6) the number of persons on the waiting list for entry 
     into any available unit in each property, project, or 
     facility described in paragraph (1);
       (7) the amenities available in each available unit in each 
     property, project, or facility described in paragraph (1), 
     including--
       (A) the services provided by such property, project, or 
     facility;
       (B) the size and availability of common space within each 
     property, project, or facility;
       (C) the availability of organized activities for 
     individuals residing in such property, project, or facility; 
     and
       (D) any other additional amenities available to individuals 
     residing in such property, project, or facility;
       (8) the level of care (personal, physical, or nursing) 
     available to individuals residing in any property, project, 
     or facility described in paragraph (1);
       (9) whether there is a service coordinator in any property, 
     project, or facility described in paragraph (1); and
       (10) any other criteria determined appropriate by the 
     Secretary.
       (b) Collection and Updating of Information.--
       (1) Initial collection.--Not later than 180 days after the 
     date of enactment of this Act, the Secretary of Housing and 
     Urban Development shall conduct a survey requesting 
     information from each owner of a property, project, or 
     facility described in subsection (a)(1) regarding the 
     provisions described in paragraphs (2) through (10) of such 
     subsection.
       (2) Response time.--Not later than 60 days after receiving 
     the request described under paragraph (1), the owner of each 
     such property, project, or facility shall submit such 
     information to the Secretary of Housing and Urban 
     Development.
       (3) Public availability.--Not later than 120 days after the 
     Secretary of Housing and Urban Development receives the 
     submission of any information required under paragraph (2), 
     the Secretary shall make such information publicly available 
     through the clearinghouse.
       (4) Updates.--The Secretary of Housing and Urban 
     Development shall conduct a biennial survey of each owner of 
     a property, project, or facility described in subsection 
     (a)(1) for the purpose of updating or modifying information 
     provided in the initial collection of information under 
     paragraph (1). Not later than 30 days after receiving such a 
     request, the owner of each such property, project, or 
     facility shall submit such updates or modifications to the 
     Secretary. Not later than 60 days after receiving such 
     updates or modifications, the Secretary shall inform the 
     clearinghouse of such updated or modified information.
       (c) Functions.--The clearinghouse established under 
     subsection (a) shall--
       (1) respond to inquiries from State and local governments, 
     other organizations, and individuals requesting information 
     regarding the availability of housing in multifamily 
     developments for elderly tenants;
       (2) make such information publicly available via the 
     Internet website of the Department of Housing and Urban 
     Development, which shall include--
       (A) access via electronic mail; and
       (B) an easily searchable, sortable, downloadable, and 
     accessible index that itemizes the availability of housing in 
     multifamily developments for elderly tenants by State, 
     county, and zip code;
       (3) establish a toll-free number to provide the public with 
     specific information regarding the availability of housing in 
     multifamily developments for elderly tenants; and
       (4) perform any other duty that the Secretary determines 
     necessary to achieve the purposes of this section.
       (d) Relationship With Other Databases.--The Secretary of 
     Housing and Urban Development may make the clearinghouse 
     established under subsection (a) a part of any other 
     multifamily housing database the Secretary is required to 
     establish.
       (e) Authorization of Appropriations.--There are authorized 
     to be appropriated such sums as necessary to carry out this 
     section.

  Mr. BROWN of Ohio. Mr. President, I ask unanimous consent that the 
committee-reported substitute amendment be considered, that a Dodd 
amendment which is at the desk be agreed to, the committee-substitute 
amendment, as amended, be agreed to, the bill, as amended, be read a 
third time, and that a budgetary pay-go statement be read.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The amendment (No. 4850) was agreed to, as follows:

   (Purpose: To comply with the Statutory Pay-As-You-Go-Act of 2010)

       On page 45, strike line 1 and all that follows through page 
     50, line 8
       On page 50, after line 8, insert the following:

     TITLE IV--COMPLIANCE WITH STATUTORY PAY-AS-YOU-GO ACT OF 2010

     SEC. 401. BUDGETARY EFFECTS.

       The budgetary effects of this Act, for the purpose of 
     complying with the Statutory Pay-As-You-Go-Act of 2010, shall 
     be determined by reference to the latest statement titled 
     ``Budgetary Effects of PAYGO Legislation'' for this Act, 
     submitted for printing in the Congressional Record by the 
     Chairman of the Senate Budget Committee, provided that such 
     statement has been submitted prior to the vote on passage.

  The committee-reported substitute amendment, as amended, was agreed 
to.
  The bill was ordered to be engrossed for a third reading and was read 
the third time.
  The PRESIDING OFFICER. The clerk will read the pay-go statement.
  The bill clerk read as follows:
       Mr. Conrad: This is the Statement of Budgetary Effects of 
     PAYGO Legislation for S. 118.

       Total Budgetary Effects of S. 118 for the 5-year Statutory 
     PAYGO Scorecard: net increase in the deficit of $5 million.
       Total Budgetary Effects of S. 118 for the 10-year Statutory 
     PAYGO Scorecard: net increase in the deficit of $5 million.

       Also submitted for the Record as part of this statement is 
     a table prepared by the Congressional Budget Office, which 
     provides additional information on the budgetary effects of 
     this act, as follows:

  CBO ESTIMATE OF THE STATUTORY PAY-AS-YOU-GO EFFECTS FOR S. 118, THE SECTION 202 SUPPORTIVE HOUSING FOR THE ELDERLY ACT OF 2010, AS PROVIDED TO CBO BY
                                                 THE SENATE COMMITTEE ON THE BUDGET ON DECEMBER 17, 2010
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                                                                             By fiscal year, in millions of dollars--
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                                            2011     2012     2013     2014     2015     2016     2017     2018     2019     2020   2011-2015  2011-2020
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                                                               Net Increase in the Deficit
 
Statutory Pay-As-You-Go Impact a........        5        0        0        0        0        0        0        0        0        0         5          5
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Note: The language transmitted to CBO on December 17, 2010 included an amendment that would strike Title IV of S. 118 as ordered reported by the Senate
  Committee on Banking, Housing, and Urban Affairs on September 20, 2010.
a S. 118 would amend the American Homeownership and Economic Opportunity Act of 2000 to increase the number of properties that are eligible to prepay
  loans issued under Section 202 of the Housing Act of 1959. The bill also would expand the eligible uses for savings generated by refinancing Section
  202 loans.


[[Page S10701]]

  Mr. BROWN of Ohio. Mr. President, I ask unanimous consent that the 
bill be passed, and the motions to reconsider be laid upon the table, 
with no intervening action or debate, and any statements related to the 
bill be printed in the Record.
  The PRESIDING OFFICER. Without objection, it is so ordered.
  The bill (S. 118), as amended, was passed, as follows:

                                 S. 118

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

     SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Section 
     202 Supportive Housing for the Elderly Act of 2010''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title and table of contents.

                   TITLE I--NEW CONSTRUCTION REFORMS

Sec. 101. Selection criteria.
Sec. 102. Development cost limitations.
Sec. 103. Owner deposits.
Sec. 104. Definition of private nonprofit organization.
Sec. 105. Nonmetropolitan allocation.

                         TITLE II--REFINANCING

Sec. 201. Approval of prepayment of debt.
Sec. 202. Use of unexpended amounts.
Sec. 203. Use of project residual receipts.
Sec. 204. Additional provisions.

   TITLE III--ASSISTED LIVING FACILITIES AND SERVICE-ENRICHED HOUSING

Sec. 301. Amendments to the grants for conversion of elderly housing to 
              assisted living facilities.
Sec. 302. Monthly assistance payment under rental assistance.

     TITLE IV--COMPLIANCE WITH STATUTORY PAY-AS-YOU-GO ACT OF 2010

Sec. 401. Budgetary effects.

                   TITLE I--NEW CONSTRUCTION REFORMS

     SEC. 101. SELECTION CRITERIA.

       Section 202(f)(1) of the Housing Act of 1959 (12 U.S.C. 
     1701q(f)(1)) is amended--
       (1) by redesignating subparagraphs (F) and (G) as 
     subparagraphs (G) and (H), respectively; and
       (2) by inserting after subparagraph (E) the following new 
     subparagraph:
       ``(F) the extent to which the applicant has ensured that a 
     service coordinator will be employed or otherwise retained 
     for the housing, who has the managerial capacity and 
     responsibility for carrying out the actions described in 
     subparagraphs (A) and (B) of subsection (g)(2);''.

     SEC. 102. DEVELOPMENT COST LIMITATIONS.

       Section 202(h)(1) of the Housing Act of 1959 (12 U.S.C. 
     1701q(h)(1)) is amended, in the matter preceding subparagraph 
     (A), by inserting ``reasonable'' before ``development cost 
     limitations''.

     SEC. 103. OWNER DEPOSITS.

       Section 202(j)(3)(A) of the Housing Act of 1959 (12 U.S.C. 
     1701q(j)(3)(A)) is amended by inserting after the period at 
     the end the following: ``Such amount shall be used only to 
     cover operating deficits during the first 3 years of 
     operations and shall not be used to cover construction 
     shortfalls or inadequate initial project rental assistance 
     amounts.''.

     SEC. 104. DEFINITION OF PRIVATE NONPROFIT ORGANIZATION.

       Section 202(k)(4) of the Housing Act of 1959 (12 U.S.C. 
     1701q(k)(4)) is amended to read as follows:
       ``(4) The term `private nonprofit organization' means--
       ``(A) any incorporated private institution or foundation--
       ``(i) no part of the net earnings of which inures to the 
     benefit of any member, founder, contributor, or individual;
       ``(ii) which has a governing board--

       ``(I) the membership of which is selected in a manner to 
     assure that there is significant representation of the views 
     of the community in which such housing is located; and
       ``(II) which is responsible for the operation of the 
     housing assisted under this section, except that, in the case 
     of a nonprofit organization that is the sponsoring 
     organization of multiple housing projects assisted under this 
     section, the Secretary may determine the criteria or 
     conditions under which financial, compliance and other 
     administrative responsibilities exercised by a single-entity 
     private nonprofit organization that is the owner corporation 
     responsible for the operation of an individual housing 
     project may be shared or transferred to the governing board 
     of such sponsoring organization; and

       ``(iii) which is approved by the Secretary as to financial 
     responsibility; and
       ``(B) a for-profit limited partnership the sole general 
     partner of which is--
       ``(i) an organization meeting the requirements under 
     subparagraph (A);
       ``(ii) a for-profit corporation wholly owned and controlled 
     by one or more organizations meeting the requirements under 
     subparagraph (A); or
       ``(iii) a limited liability company wholly owned and 
     controlled by one or more organizations meeting the 
     requirements under subparagraph (A).''.

     SEC. 105. NONMETROPOLITAN ALLOCATION.

       Paragraph (3) of section 202(l) of the Housing Act of 1959 
     (12 U.S.C. 1701q(l)(3)) is amended by inserting after the 
     period at the end the following: ``In complying with this 
     paragraph, the Secretary shall either operate a national 
     competition for the nonmetropolitan funds or make allocations 
     to regional offices of the Department of Housing and Urban 
     Development.''.

                         TITLE II--REFINANCING

     SEC. 201. APPROVAL OF PREPAYMENT OF DEBT.

       Subsection (a) of section 811 of the American Homeownership 
     and Economic Opportunity Act of 2000 (12 U.S.C. 1701q note) 
     is amended--
       (1) in the matter preceding paragraph (1), by inserting ``, 
     for which the Secretary's consent to prepayment is 
     required,'' after ``Affordable Housing Act)'';
       (2) in paragraph (1)--
       (A) by inserting ``at least 20 years following'' before 
     ``the maturity date'';
       (B) by inserting ``project-based'' before ``rental 
     assistance payments contract'';
       (C) by inserting ``project-based'' before ``rental housing 
     assistance programs''; and
       (D) by inserting ``, or any successor project-based rental 
     assistance program,'' after ``1701s))'';
       (3) by amending paragraph (2) to read as follows:
       ``(2) the prepayment may involve refinancing of the loan if 
     such refinancing results in--
       ``(A) a lower interest rate on the principal of the loan 
     for the project and in reductions in debt service related to 
     such loan; or
       ``(B) a transaction in which the project owner will address 
     the physical needs of the project, but only if, as a result 
     of the refinancing--
       ``(i) the rent charges for unassisted families residing in 
     the project do not increase or such families are provided 
     rental assistance under a senior preservation rental 
     assistance contract for the project pursuant to subsection 
     (e); and
       ``(ii) the overall cost for providing rental assistance 
     under section 8 for the project (if any) is not increased, 
     except, upon approval by the Secretary to--

       ``(I) mark-up-to-market contracts pursuant to section 
     524(a)(3) of the Multifamily Assisted Housing Reform and 
     Affordability Act (42 U.S.C. 1437f note), as such section is 
     carried out by the Secretary for properties owned by 
     nonprofit organizations; or
       ``(II) mark-up-to-budget contracts pursuant to section 
     524(a)(4) of the Multifamily Assisted Housing Reform and 
     Affordability Act (42 U.S.C. 1437f note), as such section is 
     carried out by the Secretary for properties owned by eligible 
     owners (as such term is defined in section 202(k) of the 
     Housing Act of 1959 (12 U.S.C. 1701q(k)); and''; and

       (4) by adding at the end the following:
       ``(3) notwithstanding paragraph (2)(A), the prepayment and 
     refinancing authorized pursuant to paragraph (2)(B) involves 
     an increase in debt service only in the case of a refinancing 
     of a project assisted with a loan under such section 202 
     carrying an interest rate of 6 percent or lower.''.

     SEC. 202. USE OF UNEXPENDED AMOUNTS.

       Subsection (c) of section 811 of the American Homeownership 
     and Economic Opportunity Act of 2000 (12 U.S.C. 1701q note) 
     is amended--
       (1) by striking ``Use of Unexpended Amounts.--'' and 
     inserting ``Use of Proceeds.--'';
       (2) by amending the matter preceding paragraph (1) to read 
     as follows: ``Upon execution of the refinancing for a project 
     pursuant to this section, the Secretary shall ensure that 
     proceeds are used in a manner advantageous to tenants of the 
     project, or are used in the provision of affordable rental 
     housing and related social services for elderly persons that 
     are tenants of the project or are tenants of other HUD-
     assisted senior housing by the private nonprofit organization 
     project owner, private nonprofit organization project 
     sponsor, or private nonprofit organization project developer, 
     including--'';
       (3) by amending paragraph (1) to read as follows:
       ``(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, except that upon the request of the non-
     profit owner, sponsor, or organization and determination of 
     the Secretary, such 15 percent limitation may be waived to 
     ensure that the use of unexpended amounts better enables 
     seniors to age in place;'';
       (4) in paragraph (2), by inserting before the semicolon the 
     following; ``, including reducing the number of units by 
     reconfiguring units that are functionally obsolete, 
     unmarketable, or not economically viable'';
       (5) in paragraph (3), by striking ``or'' at the end;
       (6) in paragraph (4), by striking ``according to a pro rata 
     allocation of shared savings resulting from the 
     refinancing.'' and inserting a semicolon; and
       (7) by adding at the end the following new paragraphs:
       ``(5) rehabilitation of the project to ensure long-term 
     viability; and
       ``(6) the payment to the project owner, sponsor, or third 
     party developer of a developer's fee in an amount not to 
     exceed or duplicate--
       ``(A) in the case of a project refinanced through a State 
     low income housing tax credit program, the fee permitted by 
     the low income housing tax credit program as calculated by 
     the State program as a percentage of acceptable development 
     cost as defined by that State program; or
       ``(B) in the case of a project refinanced through any other 
     source of refinancing, 15 percent of the acceptable 
     development cost.


[[Page S10702]]


     For purposes of paragraph (6)(B), the term `acceptable 
     development cost' shall include, as applicable, the cost of 
     acquisition, rehabilitation, loan prepayment, initial reserve 
     deposits, and transaction costs.''.

     SEC. 203. USE OF PROJECT RESIDUAL RECEIPTS.

       Paragraph (1) of section 811(d) of the American 
     Homeownership and Economic Opportunity Act of 2000 (12 U.S.C. 
     1701q note) is amended--
       (1) by striking ``not more than 15 percent of''; and
       (2) by inserting before the period at the end the 
     following: ``or other purposes approved by the Secretary''.

     SEC. 204. ADDITIONAL PROVISIONS.

       Section 811 of the American Homeownership and Economic 
     Opportunity Act of 2000 (12 U.S.C. 1701q note) is amended by 
     adding at the end the following new subsections:
       ``(e) Senior Preservation Rental Assistance Contracts.--
     Notwithstanding any other provision of law, in connection 
     with a prepayment plan for a project approved under 
     subsection (a) by the Secretary or as otherwise approved by 
     the Secretary to prevent displacement of elderly residents of 
     the project in the case of refinancing or recapitalization 
     and to further preservation and affordability of such 
     project, the Secretary shall provide project-based rental 
     assistance for the project under a senior preservation rental 
     assistance contract, as follows:
       ``(1) Assistance under the contract shall be made available 
     to the private nonprofit organization owner--
       ``(A) for a term of at least 20 years, subject to annual 
     appropriations; and
       ``(B) under the same rules governing project-based rental 
     assistance made available under section 8 of the Housing Act 
     of 1937 or under the rules of such assistance as may be made 
     available for the project.
       ``(2) Any projects for which a senior preservation rental 
     assistance contract is provided shall be subject to a use 
     agreement to ensure continued project affordability having a 
     term of the longer of (A) the term of the senior preservation 
     rental assistance contract, or (B) such term as is required 
     by the new financing.
       ``(f) Subordination or Assumption of Existing Debt.--In 
     lieu of prepayment under this section of the indebtedness 
     with respect to a project, the Secretary may approve--
       ``(1) in connection with new financing for the project, the 
     subordination of the loan for the project under section 202 
     of the Housing Act of 1959 (as in effect before the enactment 
     of the Cranston-Gonzalez National Affordable Housing Act) and 
     the continued subordination of any other existing subordinate 
     debt previously approved by the Secretary to facilitate 
     preservation of the project as affordable housing; or
       ``(2) the assumption (which may include the subordination 
     described in paragraph (1)) of the loan for the project under 
     such section 202 in connection with the transfer of the 
     project with such a loan to a private nonprofit organization.
       ``(g) Flexible Subsidy Debt.--The Secretary shall waive the 
     requirement that debt for a project pursuant to the flexible 
     subsidy program under section 201 of the Housing and 
     Community Development Amendments of 1978 (12 U.S.C. 1715z-1a) 
     be prepaid in connection with a prepayment, refinancing, or 
     transfer under this section of a project if the financial 
     transaction or refinancing cannot be completed without the 
     waiver.
       ``(h) Tenant Involvement in Prepayment and Refinancing.--
     The Secretary shall not accept an offer to prepay the loan 
     for any project under section 202 of the Housing Act of 1959 
     unless the Secretary--
       ``(1) has determined that the owner of the project has 
     notified the tenants of the owner's request for approval of a 
     prepayment; and
       ``(2) has determined that the owner of the project has 
     provided the tenants with an opportunity to comment on the 
     owner's request for approval of a prepayment, including on 
     the description of any anticipated rehabilitation or other 
     use of the proceeds from the transaction, and its impacts on 
     project rents, tenant contributions, or the affordability 
     restrictions for the project, and that the owner has 
     responded to such comments in writing.
       ``(i) Definition of Private Nonprofit Organization.--For 
     purposes of this section, the term `private nonprofit 
     organization' has the meaning given such term in section 
     202(k) of the Housing Act of 1959 (12 U.S.C. 1701q(k)).''.

   TITLE III--ASSISTED LIVING FACILITIES AND SERVICE-ENRICHED HOUSING

     SEC. 301. AMENDMENTS TO THE GRANTS FOR CONVERSION OF ELDERLY 
                   HOUSING TO ASSISTED LIVING FACILITIES.

       (a) Technical Amendment.--The section heading for section 
     202b of the Housing Act of 1959 (12 U.S.C. 1701q-2) is 
     amended by inserting ``AND OTHER PURPOSES'' after ``ASSISTED 
     LIVING FACILITIES''.
       (b) Extension of Grant Authority.--Section 202b(a)(2) of 
     the Housing Act of 1959 (12 U.S.C. 1701q-2(a)(2)) is 
     amended--
       (1) by striking ``(2) Conversion.--Activities'' and 
     inserting the following:
       ``(2) Conversion.--
       ``(A) Assisted living facilities.--Activities''; and
       (2) by adding at the end the following:
       ``(B) Service-enriched housing.--Activities designed to 
     convert dwelling units in the eligible project to service-
     enriched housing for elderly persons.''.
       (c) Amendment to Application Process.--Section 202b(c)(1) 
     of the Housing Act of 1959 (12 U.S.C. 1701q-2(c)(1)) is 
     amended by inserting ``for either an assisted living facility 
     or service-enriched housing'' after ``activities''.
       (d) Requirements for Services.--Section 202b(d) of the 
     Housing Act of 1959 (12 U.S.C. 1701q-2(d)) is amended to read 
     as follows:
       ``(d) Requirements for Services.--
       ``(1) Sufficient evidence of firm funding commitments.--The 
     Secretary may not make a grant under this section for 
     conversion activities unless an application for a grant 
     submitted pursuant to subsection (c) contains sufficient 
     evidence, in the determination of the Secretary, of firm 
     commitments for the funding of services to be provided in the 
     assisted living facility or service-enriched housing, which 
     may be provided by third parties.
       ``(2) Required evidence.--The Secretary shall require 
     evidence that each recipient of a grant for service-enriched 
     housing under this section provides relevant and timely 
     disclosure of information to residents or potential residents 
     of such housing relating to--
       ``(A) the services that will be available at the property 
     to each resident, including--
       ``(i) the right to accept, decline, or choose such services 
     and to have the choice of provider;
       ``(ii) the services made available by or contracted through 
     the grantee;
       ``(iii) the identity of, and relevant information for, all 
     agencies or organizations providing any services to 
     residents, which agencies or organizations shall provide 
     information regarding all procedures and requirements to 
     obtain services, any charges or rates for the services, and 
     the rights and responsibilities of the residents related to 
     those services;
       ``(B) the availability, identity, contact information, and 
     role of the service coordinator; and
       ``(C) such other information as the Secretary determines to 
     be appropriate to ensure that residents are adequately 
     informed of the services options available to promote 
     resident independence and quality of life.''.
       (e) Amendments to Selection Criteria.--Section 202b(e) of 
     the Housing Act of 1959 (12 U.S.C. 1701q-2(e)) is amended--
       (1) in paragraph (2)--
       (A) by inserting ``or service-enriched housing'' after 
     ``facilities''; and
       (B) by inserting ``service-enriched housing'' after 
     ``facility'';
       (2) in paragraph (5), by inserting ``or service-enriched 
     housing'' after ``facility''; and
       (3) in paragraph (6), by inserting ``or service-enriched 
     housing'' after ``facility''.
       (f) Amendments to Section 8 Project-based Assistance.--
     Section 202b(f) of the Housing Act of 1959 (12 U.S.C. 1701q-
     2(f)) is amended--
       (1) in paragraph (1), by inserting ``or service-enriched 
     housing'' after ``facilities'' each time that term appears; 
     and
       (2) in paragraph (2), by inserting ``or service-enriched 
     housing'' after ``facility''.
       (g) Amendments to Definitions.--Section 202b(g) of the 
     Housing Act of 1959 (12 U.S.C. 1701q-2(g)) is amended to read 
     as follows:
       ``(g) Definitions.--For purposes of this section--
       ``(1) the term `assisted living facility' has the meaning 
     given such term in section 232(b) of the National Housing Act 
     (1715w(b));
       ``(2) the term `service-enriched housing' means housing 
     that--
       ``(A) makes available through licensed or certified third 
     party service providers supportive services to assist the 
     residents in carrying out activities of daily living, such as 
     bathing, dressing, eating, getting in and out of bed or 
     chairs, walking, going outdoors, using the toilet, laundry, 
     home management, preparing meals, shopping for personal 
     items, obtaining and taking medication, managing money, using 
     the telephone, or performing light or heavy housework, and 
     which may make available to residents home health care 
     services, such as nursing and therapy;
       ``(B) includes the position of service coordinator, which 
     may be funded as an operating expense of the property; ;
       ``(C) provides separate dwelling units for residents, each 
     of which contains a full kitchen and bathroom and which 
     includes common rooms and other facilities appropriate for 
     the provision of supportive services to the residents of the 
     housing; and
       ``(D) provides residents with control over health care and 
     supportive services decisions, including the right to accept, 
     decline, or choose such services, and to have the choice of 
     provider; and
       ``(3) the definitions in section 1701(q)(k) of this title 
     shall apply.''.

     SEC. 302. MONTHLY ASSISTANCE PAYMENT UNDER RENTAL ASSISTANCE.

       Clause (iii) of section 8(o)(18)(B) of the United States 
     Housing Act of 1937 (42 U.S.C. 1437f(o)(18)(B)(iii)) is 
     amended by inserting before the period at the end the 
     following: ``, except that a family may be required at the 
     time the family initially receives such assistance to pay 
     rent in an amount exceeding 40 percent of the monthly 
     adjusted income of the family by such an amount or percentage 
     that is reasonable given the services and amenities provided 
     and as the Secretary deems appropriate.''.

     TITLE IV--COMPLIANCE WITH STATUTORY PAY-AS-YOU-GO ACT OF 2010

     SEC. 401. BUDGETARY EFFECTS.

       The budgetary effects of this Act, for the purpose of 
     complying with the Statutory Pay-As-You-Go-Act of 2010, shall 
     be determined by reference to the latest statement

[[Page S10703]]

     titled ``Budgetary Effects of PAYGO Legislation'' for this 
     Act, submitted for printing in the Congressional Record by 
     the Chairman of the Senate Budget Committee, provided that 
     such statement has been submitted prior to the vote on 
     passage.

                          ____________________