[Congressional Record (Bound Edition), Volume 153 (2007), Part 23]
[House]
[Pages 32197-32202]
[From the U.S. Government Publishing Office, www.gpo.gov]




       SECTION 202 SUPPORTIVE HOUSING FOR THE ELDERLY ACT OF 2007

  Mr. MAHONEY of Florida. Mr. Speaker, I move to suspend the rules and 
pass the bill (H.R. 2930) 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, as amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 2930

       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 2007''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title and table of contents.

                   TITLE I--NEW CONSTRUCTION REFORMS

Sec. 101. Project rental assistance.
Sec. 102. Selection criteria.
Sec. 103. Development cost limitations.
Sec. 104. Owner deposits.
Sec. 105. Definition of private nonprofit organization.
Sec. 106. Preferences for homeless elderly.
Sec. 107. Nonmetropolitan allocation.

                         TITLE II--REFINANCING

Sec. 201. Approval of prepayment of debt.
Sec. 202. Sources of refinancing.
Sec. 203. Use of unexpended amounts.
Sec. 204. Use of project residual receipts.
Sec. 205. Additional provisions.
Sec. 206. Study of mortgage sale demonstration.

                 TITLE III--ASSISTED LIVING FACILITIES

Sec. 301. Definition of assisted living facility.
Sec. 302. Monthly assistance payment under rental assistance.

  TITLE IV--FACILITATING AFFORDABLE HOUSING PRESERVATION TRANSACTIONS

Sec. 401. Use of sale or refinancing proceeds.

                   TITLE I--NEW CONSTRUCTION REFORMS

     SEC. 101. PROJECT RENTAL ASSISTANCE.

       Paragraph (2) of section 202(c) of the Housing Act of 1959 
     (12 U.S.C. 1701q(c)(2)) is amended--
       (1) by inserting after ``assistance.--'' the following: 
     ``(A) Initial project rental assistance contract.--'';
       (2) in the last sentence, by striking ``may'' and inserting 
     ``shall''; and
       (3) by adding at the end the following new subparagraph:
       ``(B) Renewal of and increases in contract amounts.--

[[Page 32198]]

       ``(i) Expiration of contract term.--Upon the expiration of 
     each contract term, the Secretary shall adjust the annual 
     contract amount to provide for reasonable project costs, and 
     any increases, including adequate reserves, supportive 
     services, and service coordinators, except that any contract 
     amounts not used by a project during a contract term shall 
     not be available for such adjustments upon renewal.
       ``(ii) Emergency situations.--In the event of emergency 
     situations that are outside the control of the owner, the 
     Secretary shall increase the annual contract amount, subject 
     to reasonable review and limitations as the Secretary shall 
     provide.''.

     SEC. 102. SELECTION CRITERIA.

       Subsection (f) of section 202 of the Housing Act of 1959 
     (12 U.S.C. 1701q(f)) is amended--
       (1) by striking ``Selection Criteria.--'' and inserting 
     ``Initial Selection Cri-
     teria and Processing.--(1) Selection cri-
     teria.--'';
       (2) by redesignating paragraphs (1), (2), (3), (4), (5), 
     (6), and (7) as subparagraphs (A), (B), (C), (D), (E), (G), 
     and (H), respectively;
       (3) by inserting after subparagraph (E) (as so redesignated 
     by paragraph (2) of this subsection) the following new 
     subparagraph:
       ``(F) the extent to which the applicant has ensured that a 
     service coordinator will be employed or otherwise retained 
     for the housing, who has the managerial capacity and 
     responsibility for carrying out the actions described in 
     subparagraphs (A) and (B) of subsection (g)(2);''; and
       (4) by adding at the end the following new paragraph:
       ``(2) Delegated Processing.--
       ``(A) In issuing a capital advance under this subsection 
     for any project for which financing for the purposes 
     described in the last two sentences of subsection (b) is 
     provided by a combination of a capital advance under 
     subsection (c)(1) 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 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) 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) 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.''.

     SEC. 103. DEVELOPMENT COST LIMITATIONS.

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

     SEC. 104. OWNER DEPOSITS.

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

     SEC. 105. DEFINITION OF PRIVATE NONPROFIT ORGANIZATION.

       Subparagraph (B) of section 202(k)(4) of the Housing Act of 
     1959 (12 U.S.C. 1701q(k)(4)(B)) is amended by inserting 
     before the semicolon the following: ``; except that, in the 
     case of any national organization that is the owner of 
     multiple housing projects assisted under this section, the 
     organization may comply with clause (i) of this subparagraph 
     by having a local advisory board to the governing board of 
     the organization the membership which is selected in the 
     manner required under clause (i)''.

     SEC. 106. PREFERENCES FOR HOMELESS ELDERLY.

       Subsection (j) of section 202 (12 U.S.C. 1701q(j)) is 
     amended by adding at the end the following new paragraph:
       ``(9) Preferences for homeless elderly.--The Secretary 
     shall permit an owner of housing assisted under this section 
     to establish for, and apply to, the housing a preference in 
     tenant selection for the homeless elderly, either within the 
     application or after selection pursuant to subsection (f), 
     but only if--
       ``(A) such preference is consistent with paragraph (2) of 
     this subsection; and
       ``(B) the owner demonstrates that the supportive services 
     identified pursuant to subsection (e)(4), or additional 
     supportive services to be made available upon implementation 
     of the preference, will meet the needs of the homeless 
     elderly, maintain safety and security for all tenants, and be 
     provided on a consistent, long-term, and economical basis.''.

     SEC. 107. NONMETROPOLITAN ALLOCATION.

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

                         TITLE II--REFINANCING

     SEC. 201. APPROVAL OF PREPAYMENT OF DEBT.

       Subsection (a) of section 811 of the American Homeownership 
     and Economic Opportunity Act of 2000 (12 U.S.C. 1701q note) 
     is amended--
       (1) in the matter preceding paragraph (1), by inserting ``, 
     for which the Secretary's consent to prepayment is required'' 
     after ``Act)'';
       (2) in paragraph (1)--
       (A) by inserting ``project-based'' before ``rental 
     assistance payments contract'';
       (B) by inserting ``project-based'' before ``rental housing 
     assistance programs''; and
       (C) by inserting ``, or any successor project-based rental 
     assistance program,'' after ``1701s))''; and
       (3) in paragraph (2)--
       (A) by inserting ``(A)'' before ``a lower''; and
       (B) by inserting before the period at the end the 
     following: ``, 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) does not increase''.

     SEC. 202. SOURCES OF REFINANCING.

       The last sentence of section 811(b) of the American 
     Homeownership and Economic Opportunity Act of 2000 (12 U.S.C. 
     1701q note) is amended--
       (1) by inserting after ``National Housing Act,'' the 
     following: ``or approving the standards used by authorized 
     lenders to underwrite a loan refinanced with risk sharing as 
     provided by section 542 of the Housing and Community 
     Development Act of 1992 (12 U.S.C. 1701 note),''; and
       (2) by striking ``may'' and inserting ``shall''.

     SEC. 203. USE OF UNEXPENDED AMOUNTS.

       Subsection (c) of section 811 of the American Homeownership 
     and Economic Opportunity Act of 2000 (12 U.S.C. 1701q note) 
     is amended--
       (1) in the matter preceding paragraph (1), by inserting 
     after ``tenants,'' the following: ``or is used in the 
     provision of affordable rental housing and related social 
     services for elderly persons by the private nonprofit 
     organization project owner, private nonprofit organization 
     project sponsor, or private nonprofit organization project 
     developer,'';
       (2) in paragraph (1), by striking ``not more than 15 
     percent of'';
       (3) in paragraph (2), by inserting before the semicolon the 
     following; ``, including reducing the number of units and 
     reconfiguring units that are functionally obsolete, 
     unmarketable, or not economically viable'';
       (4) in paragraph (3), by striking ``or'' at the end;
       (5) in paragraph (4) by striking the period at the end and 
     inserting a semicolon; and
       (6) by adding at the end the following new paragraphs:
       ``(5) the payment to the project owner, sponsor, or third 
     party developer of a developer's fee in an amount not to 
     exceed--
       ``(A) in the case of a project refinanced through a State 
     low income housing tax credit program, the fee permitted by 
     the low income housing tax credit program as calculated by 
     the State program as a percentage of acceptable development 
     cost as defined by that State program; or
       ``(B) in the case of a project refinanced through any other 
     source of refinancing, 15 percent of the acceptable 
     development cost; or
       ``(6) the payment of equity, if any, to--
       ``(A) in the case of a sale, to the seller or the sponsor 
     of the seller, in an amount equal

[[Page 32199]]

     to the lesser of the purchase price or the appraised value of 
     the property, as each is reduced by the cost of prepaying any 
     outstanding indebtedness on the property and transaction 
     costs of the sale; or
       ``(B) in the case of a refinancing without the transfer of 
     the property, to the project owner or the project sponsor, in 
     an amount equal to the difference between the appraised value 
     of the property less the outstanding indebtedness and total 
     acceptable development cost.

     For purposes of paragraphs (5)(B) and (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. 204. USE OF PROJECT RESIDUAL RECEIPTS.

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

     SEC. 205. ADDITIONAL PROVISIONS.

       Section 811 of the American Homeownership and Economic 
     Opportunity Act of 2000 (12 U.S.C. 1701q note) is amended by 
     adding at the end the following new subsections:
       ``(e) Senior Preservation Rental Assistance Contracts.--
     Notwithstanding any other provision of law, in connection 
     with a prepayment plan for a project approved under 
     subsection (a) by the Secretary or as otherwise approved by 
     the Secretary, to prevent displacement of elderly residents 
     of the project in the case of refinancing or recapitalization 
     and to further preservation and affordability of such 
     project, at the election of the private nonprofit 
     organization owner of the project, the Secretary shall 
     provide project-based rental assistance for the project under 
     a senior preservation rental assistance contract, as follows:
       ``(1) Assistance under the contract shall be made available 
     to the private nonprofit organization owner--
       ``(A) for a term of at least 20 years, subject to annual 
     appropriations, and
       ``(B) under the same rules governing project-based rental 
     assistance made available under section 8 of the Housing Act 
     of 1937.
       ``(2) Any projects for which a senior preservation rental 
     assistance contract is provided shall be subject to a use 
     agreement to ensure continued project affordability having a 
     term of the longer of (A) the term of the senior preservation 
     rental assistance contract, or (B) such term as is required 
     by the new financing.
       ``(f) Flexible Subsidy Debt.--The Secretary shall waive the 
     requirement that debt for a project pursuant to the flexible 
     subsidy program under section 201 of the Housing and 
     Community Development Amendments of 1978 (12 U.S.C. 1715z-1a) 
     be prepaid in connection with a prepayment, refinancing, or 
     transfer under this section of a project if such waiver is 
     necessary for the financial feasibility of the transaction 
     and is consistent with the long-term preservation of the 
     project as affordable housing.
       ``(g) Prepayment When Secretary's Consent Not Required.--In 
     connection with the prepayment under this section of a loan 
     for which the Secretary's consent to prepayment is not 
     required, at the project owner's election--
       ``(1) all tenants of the project shall be eligible for 
     enhanced vouchers in accordance with section 8(t) of the 
     United States Housing Act of 1937 (42 U.S.C. 1437f(t)); or
       ``(2) if the project will continue to be owned by a private 
     nonprofit organization owner, such private nonprofit 
     organization owner may enter into a senior preservation 
     rental assistance contract with the Secretary in accordance 
     with subsection (e).
       ``(h) 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)).''.

     SEC. 206. STUDY OF MORTGAGE SALE DEMONSTRATION.

       (a) Study.--The Secretary of Housing and Urban Development 
     shall conduct a study to evaluate the estimated costs and 
     potential benefits of carrying out a program under which the 
     Secretary may sell mortgages associated with loans made under 
     section 202 of the Housing Act of 1959 (as in effect before 
     the enactment of the Cranston-Gonzalez National Affordable 
     Housing Act) in accordance with the terms for sales of 
     subsidized loans on multifamily housing projects under 
     section 203 of the Housing and Community Development 
     Amendments of 1978 (12 U.S.C. 1701z-11), and of carrying out 
     a demonstration program for sales of portfolios of such 
     mortgages to housing finance agencies in three States. In 
     conducting such study, the Secretary shall place particular 
     emphasis on determining whether the asset management 
     functions and activities related to such loans and properties 
     could be accomplished pursuant to such sales in a timely, 
     effective, and efficient manner, including an analysis of the 
     potential impacts on approvals of refinancings and 
     preservation transactions, rent increase requests, and 
     withdrawals from reserves or residual receipts (in cases in 
     which there is no contract administrator).
       (b) Report.--Not later than the expiration of the 12-month 
     period beginning upon the date of the enactment of this Act, 
     the Secretary shall submit a report to the Committee on 
     Financial Services of the House of Representatives and the 
     Committee on Banking, Housing, and Urban Affairs of the 
     Senate on the findings of the study and any recommendations 
     for implementing such a program and such a demonstration.

                 TITLE III--ASSISTED LIVING FACILITIES

     SEC. 301. DEFINITION OF ASSISTED LIVING FACILITY.

       Section 202b(g) of the Housing Act of 1959 (12 U.S.C. 
     1701q-2(g)) is amended by striking paragraph (1) and 
     inserting the following new paragraph:
       ``(1) the term `assisted living facility' means a facility 
     that--
       ``(A) is owned by a private nonprofit organization; and
       ``(B)(i) is licensed and regulated by the State (or if 
     there is no State law providing for such licensing and 
     regulation by the State, by the municipality or other 
     political subdivision in which the facility is located); or
       ``(ii)(I) makes available, directly or through recognized 
     and experienced third party service providers, to residents 
     at the resident's request or choice supportive services to 
     assist the residents in carrying out the activities of daily 
     living, such as bathing, dressing, eating, getting in and our 
     of bed or chairs, walking, going outdoors, toileting, 
     laundry, home management, preparing meals, shopping for 
     personal items, obtaining and taking medication, managing 
     money, using the telephone, or performing light of heavy 
     housework, and which may make available to residents home 
     health care service, such as nursing and therapy, and certain 
     health related services; and
       ``(II) provides separate dwelling units for residents, each 
     of which may contain a full kitchen and bathroom and which 
     includes common rooms and other facilities appropriate for 
     the provision of supportive services to the residents of the 
     facility; and''.

     SEC. 302. MONTHLY ASSISTANCE PAYMENT UNDER RENTAL ASSISTANCE.

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

  TITLE IV--FACILITATING AFFORDABLE HOUSING PRESERVATION TRANSACTIONS

     SEC. 401. USE OF SALE OR REFINANCING PROCEEDS.

       Notwithstanding any other provision of law, in connection 
     with the sale or refinancing of a multifamily housing 
     project, or the transfer of an assistance contract on such a 
     property, that requires the approval of the Secretary of 
     Housing and Urban Development, the Secretary shall not impose 
     any condition that restricts the amount or use of sale or 
     refinancing proceeds, or requires the filing of a financial 
     report, unless such condition is expressly authorized by an 
     existing contract entered into between the Secretary (or the 
     Secretary's designee) and the project owner before the 
     imposition of a condition prohibited by this section or is a 
     general condition for new financing with a mortgage insured 
     by the Secretary. Any such condition previously imposed by 
     the Secretary after January 1, 2005, shall, at the option of 
     the project owner, be considered void and not enforceable, 
     and any agreement containing such a condition shall be 
     rescinded and may be reissued without the void condition.

  The SPEAKER pro tempore. Pursuant to the rule, the gentleman from 
Florida (Mr. Mahoney) and the gentlewoman from West Virginia (Mrs. 
Capito) each will control 20 minutes.
  The Chair recognizes the gentleman from Florida.


                             General Leave

  Mr. MAHONEY of Florida. Mr. Speaker, I ask unanimous consent that all 
Members may have 5 legislative days within which to revise and extend 
their remarks on this legislation and to insert extraneous material 
thereon.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Florida?
  There was no objection.
  Mr. MAHONEY of Florida. Mr. Speaker, I yield myself such time as I 
may consume.
  Mr. Speaker, today the House of Representatives has the ability to 
improve the lives of thousands of seniors across the country with the 
passage of H.R. 2930, the Section 202 Supportive Housing for the 
Elderly Act of 2007. As our elderly population grows, the need for 
affordable housing will also increase. In 2005, there were 
approximately 37 million Americans over the age of 65.

[[Page 32200]]

According to the U.S. Census Bureau, the number of seniors is expected 
to grow rapidly during the next few decades. In addition, today's 
seniors are facing economic uncertainty. In my home State of Florida, 
the toxic cocktail of rising gas prices, skyrocketing property taxes 
and exorbitant homeowners insurance has forced seniors to make 
difficult choices between paying their mortgage, putting food on the 
table or purchasing lifesaving medication.
  Despite this increase in demand, the number of affordable housing 
units is shrinking. According to the Joint Center for Housing, for 
every unit of affordable housing constructed, two are lost either by 
the conversion of affordable housing to market rate housing or by 
sponsors of section 202 housing opting out of the program when their 
contracts expire.
  In 2002, Congress created a bipartisan commission to study the need 
for affordable housing and supportive services for the elderly. In the 
commission's report to Congress entitled ``A Quiet Crisis in America,'' 
they stated that ``this Nation, despite competing demands for national 
resources, must respond to the critical need for affordable housing and 
home and community-based supportive services, with a substantial 
financial commitment and effective policies.'' The report also 
concluded that ``all seniors, no matter what their individual 
circumstances and resources, should be able to continue to live where 
they prefer regardless of their income, with the services they need to 
maintain personal dignity and quality of life.''
  One of the most important responsibilities we have as a society is to 
ensure that our seniors, who have done everything our Nation has asked 
them to do, have a safe and affordable place to live. The Section 202 
Supportive Housing for the Elderly Act is a step in achieving this 
goal. This important piece of legislation will give the owners of 202 
facilities the ability to leverage the property's equity, access much-
needed capital and benefit from low interest rates from private 
lenders. By doing so, this legislation will ensure that these 
facilities are preserved and improved to meet the changing needs of 
seniors.
  In addition, the bill allows for funding to be used to increase the 
services that section 202 communities provide for their residents, 
allowing them to live a more independent life. Finally, this bill will 
assist seniors living in older section 202 facilities by extending them 
rental assistance. This provision will allow owners to preserve these 
properties without the risk of displacing poor residents.
  I have seen firsthand how important these facilities are to our 
communities. I visited Villa Assumpta in Jensen Beach, Florida, a 
section 202 facility run by Catholic Charities, and Presbyterian Homes 
of Port Charlotte, Florida, operated by the Presbyterian Association of 
Homes and Services for the Aging. I have met with the residents and I 
have heard their life stories, residents like Ruth Justice. Mrs. 
Justice lived in a mobile home in Stuart, Florida, for almost 40 years 
until Hurricane Wilma ripped the roof off of her home. Fortunately, 
Ruth was able to escape from the hurricane with her piano, trumpets and 
other instruments she and her husband had collected over the years. 
However, no matter how much she loved her music and her musical 
instruments, it couldn't ease the financial burden that she faced with 
a new place which ate up her entire monthly Social Security check. Ruth 
felt like she had no place to turn. Thank God for Catholic Charities 
and Villa Assumpta.
  Fortunately, Ruth was one of the lucky ones. For seniors in need of 
low-income housing who qualify for one of Villa Assumpta's 99 units, 
waits can be more than 2 years. I was moved by stories like Ruth's and 
how much this housing means to our seniors. After years of working to 
live the American Dream, many of these seniors find themselves with 
monthly incomes of $800 or less. Without the section 202 housing, where 
would Ruth and her friends be? Where are the seniors living tonight 
that are on Villa Assumpta's 2-year waiting list? On our streets? We 
have a responsibility to make sure that we provide affordable housing 
to our seniors and we can start by passing this important legislation.
  Mr. Speaker, the Section 202 Supportive Housing for the Elderly Act 
is an example of what this Congress can achieve when it works together 
in a bipartisan fashion. First, the bill was reported out of the 
Financial Services Committee by a unanimous vote. Secondly, following 
the committee's consideration of H.R. 2930, we worked closely with my 
colleague from West Virginia (Mrs. Capito) to ensure that the bill 
meets the needs of rural communities.
  Under current law, HUD is required to reserve 15 percent of program 
funds for the development of units in non-metropolitan areas. 
Unfortunately, the small number of units that are reserved do not 
provide an adequate incentive for developers to undertake such 
projects. As a result, rural communities often face severe shortages of 
section 202 units. The new provision added by Mrs. Capito will provide 
HUD with greater flexibility by allowing the Department to allocate 
funding for non-metropolitan units on a regional or national scale. I 
would like to thank her for her work to further strengthen the bill and 
to ensure that all of our communities, whether they be urban or rural, 
have access to the program.
  Mr. Speaker, the section 202 program is a great example of how the 
Federal Government can work with religious institutions to provide 
needed services to our communities. Many of the section 202 facilities 
are run by religious organizations. I am proud that this legislation is 
being supported by more than 30 organizations that provide housing to 
the elderly, including Catholic Charities, Lutheran Services of America 
and United Jewish Communities.
  Mr. Speaker, at this time I would like to insert into the Record a 
letter from these groups expressing their strong support for H.R. 2930.

 H.R. 2930--Section 202 Supportive Housing for the Elderly Act of 2007 
                           Endorsement Letter

       We, the undersigned organizations, write in strong support 
     of H.R. 2930, the Section 202 Supportive Housing for the 
     Elderly Act of 2007. Under the current Section 202 law, the 
     development and preservation of senior housing can be time-
     consuming and bureaucratic at a time when demand for 
     supportive senior housing is exploding and the loss of 
     affordable housing exceeds new construction. We believe that 
     this legislation is sorely needed to streamline and simplify 
     the development and preservation of affordable, supportive, 
     senior housing for increased participation by not-for-profit 
     developers, private lenders, investors, and state and local 
     funding agencies.
       The current Section 202 program is a capital advance grant 
     for the construction of new supportive senior communities 
     with a project rental assistance contract to subsidize very 
     low-income elderly renters. Even though the award now comes 
     in the form of a grant, HUD engages in a protracted 
     ``underwriting'' process that often increases red tape, 
     delays the development process, and results in escalated 
     costs, particularly when Section 202 funds are combined with 
     the Low Income Housing Tax Credit. To promote efficiency and 
     streamline the processing of new developments, the proposed 
     legislation will delegate the processing of the Section 202 
     capital advance grants to state or local entities with 
     expertise in housing development. We know that this will 
     ensure that supportive senior housing will be open more 
     quickly to serve our Nation's most vulnerable seniors, 
     particularly in combination with tax credits.
       Many older Section 202 facilities are in need of repair, 
     rehabilitation or modernization, but most of them do not have 
     the funds to retrofit their buildings to accommodate the 
     present and future needs of their residents. The current 
     Section 202 statute permits Section 202 providers to 
     refinance ad use the substantial equity in these projects to 
     fund the much needed rehabilitation, extend the lives of 
     these properties, and provide an enhanced supportive 
     environment for seniors as they age in place. Unfortunately, 
     these preservation deals have been stymied by illogical 
     decisions from HUD. Title II of H.R. 2930 would make a number 
     of technical changes in the statute to enhance the ability of 
     organizations to recapitalize and preserve existing Section 
     202 housing and enhance supportive services.
       This legislation would require rather than permit HUD to 
     approve reconfiguration of obsolete efficiencies into 1-
     bedroom units where providers are experiencing high vacancy 
     rates, allow the use of excess proceeds to further the non-
     profits' housing and services mission, permit the 
     subordination of debt and other important tools that would

[[Page 32201]]

     make preservation easier to achieve. Most importantly, H.R. 
     2930 will establish a new project based rental assistance 
     program to allow those Section 202 properties built between 
     1959 and 1974, the oldest segment of the 202 inventory, that 
     do not currently have rental assistance to be refinanced and 
     rehabilitated and receive project based rental assistance. 
     This will enable sponsors to prevent displacement and 
     continue serving low-income seniors.
       We want to thank Congressman Mahoney for introducing this 
     important legislation. We believe these reforms are 
     absolutely necessary to ensure more units are built and 
     preserved more quickly.
       The changes this legislation offers represent a 
     comprehensive federal policy change to meet the affordable 
     housing needs of low-income seniors. Without these reforms, 
     our most vulnerable seniors will face displacement, 
     homelessness, or premature institutionalization. We encourage 
     you to support H.R. 2930 and a national commitment to the 
     development and preservation of supportive, affordable senior 
     housing.
           Sincerely,
       Aging Services of California.
       Alliance for Retired Americans.
       American Association of Homes and Services for the Aging.
       Association of Jewish Aging Services of North America.
       Association of Jewish Family & Children's Agencies.
       B'nai B'rith International.
       Catholic Charities.
       Elderly Housing Development and Operations Corporation.
       Florida Association of Homes and Services for the Aging.
       Indiana Association of Homes and Services for the Aging.
       Iowa Association of Homes and Services for the Aging.
       Jewish Federation of Metropolitan Chicago.
       Life Services Network of Illinois.
       LifeSpan Network.
       Local Initiatives Support Corporation.
       Lutheran Services in America.
       National Association of Area Agencies on Aging.
       National Affordable Housing Management Association.
       National Church Residences.
       National Council on Aging.
       National Housing Trust.
       New Jersey Association of Home and Services for the Aging.
       National Housing Trust.
       National Leased Housing Association.
       National Low Income Housing Coalition.
       New York Association of Homes and Services for the Aging.
       Oregon Alliance of Senior and Health Services.
       Stewards of Affordable Housing for the Future.
       United Jewish Communities.
       Volunteers of America. 
       Washington Association of Housing and Services for the 
     Aging. 

  In closing, I would like to thank Chairman Frank and Representative 
Maxine Waters for their leadership in this area of affordable housing. 
I would also like to thank their staffs, Meredith Connelly, Scott Olson 
and Jonathan Harwitz, for their hard work and commitment to this 
legislation. Their efforts will help thousands of seniors live their 
lives with the dignity that they deserve.
  Mr. Speaker, I would ask my colleagues to stand up for our seniors by 
voting ``yes'' for H.R. 2930, the Section 202 Supportive Housing for 
the Elderly Act of 2007.
  I reserve the balance of my time.
  Mrs. CAPITO. Mr. Speaker, today I rise in strong support of H.R. 
2930, the Section 202 Supportive Housing for the Elderly Act of 2007. I 
would like to thank my colleague from Florida for all of his good, hard 
work and the leadership of the committee, the Financial Services 
Committee, for the work they have done on this.
  Affordable housing with supportive services is a key component for 
seniors seeking to stay in their homes and to ``age in place.'' The 
section 202 housing for the elderly program is the primary HUD program 
that provides housing exclusively for low-income elderly households. 
H.R. 2930 reforms the section 202 elderly housing program making it 
more effective and efficient and better able to meet the housing needs 
of our elderly.
  Today, we are facing a growing elderly housing crisis in this 
country. According to the 2005 census data, there are approximately 3.6 
million seniors living below the poverty line. Among senior renters, 
1.29 million have worst case housing needs, meaning they spend over 50 
percent of their income on housing.
  The section 202 program has been an important tool in addressing 
these serious housing needs by providing capital advance grants to 
nonprofit housing sponsors to build new elderly housing facilities and 
project rental assistance contracts to subsidize very low-income 
elderly residents of these facilities. Many nonprofit sponsors are 
faith-based organizations with a mission to serve the elderly. As a 
condition of receiving a capital advance, which does not have to be 
repaid, a nonprofit sponsor must make housing available for a period of 
no less than 40 years. As a result of these efforts, the section 202 
program currently supplies over 320,000 units of housing to very low-
income elderly citizens.
  While the section 202 program has been successful at providing much-
needed housing resources to our very low-income seniors, it is 
estimated that 10 seniors are waiting for each unit that becomes 
available. Participants and developers of the section 202 housing 
program maintain that the current regulation and HUD administration of 
the program can be time consuming and bureaucratic. H.R. 2930 will 
improve the section 202 elderly housing program by streamlining and 
simplifying the development and preservation of HUD's section 202 
properties and by increasing participation by not-for-profit 
developers, private lenders, investors and State and local funding 
agencies.
  I do want to point out to my colleagues that the bill we are 
considering on the floor today includes several changes to the bill 
reported out of the Committee on Financial Services on September 25. 
While the bill as reported did have a $94 million cost for fiscal year 
2008 and a $212 million cost over 5 years, those costs have been 
removed by the elimination of the mortgage sale demonstration program 
and the subordination or assumption of existing debt provisions. The 
Congressional Budget Office now reports the costs associated with this 
bill to be insignificant.
  I would also like to thank my colleagues and Chairman Frank in 
particular for his willingness to work with me on a provision to 
resolve a problem that non-metropolitan States like my home State of 
West Virginia have experienced when attempting to qualify for funds 
under the section 202 program. It is important to recognize that the 
need for housing for the very low-income elderly extends beyond 
metropolitan areas and it needs the flexibility for rural and suburban 
areas to be able to qualify for these funds. The very low-income 
elderly of rural West Virginia deserve the very same resources 
available to the elderly in the larger areas.
  H.R. 2930 now includes provisions to establish a national competition 
for non-metro elderly housing funds and will allow regional offices to 
administer elderly housing allocations. This greater flexibility will 
help create more elderly housing units in rural States like mine.
  I would like to pause and thank the housing advocates in my State of 
West Virginia for bringing this issue before me in a very timely manner 
so we could fix this while we are dealing with the section 202 program. 
So I want to thank my fellow West Virginians for helping us out here.
  Mr. Speaker, the affordable rental housing crisis in America is 
having a profound effect on renters of all ages, especially our 
seniors, and this bill will help ease some of the affordability 
problems plaguing our senior population.
  I urge my colleagues to support H.R. 2930, the Section 202 Supportive 
Housing for the Elderly Act of 2007.
  I reserve the balance of my time.
  Mr. MAHONEY of Florida. Mr. Speaker, I would like to yield 2 minutes 
to my distinguished friend from Vermont (Mr. Welch).
  Mr. WELCH of Vermont. I thank very much my colleague, Mr. Mahoney, 
for his excellent work on this legislation and Mrs. Capito for her 
excellent work on this bipartisan legislation.
  It is incredibly important to America's seniors, Vermont's seniors, 
that they have security in housing as they age. And that is a challenge 
because we are getting more folks older and incomes are not keeping up. 
H.R. 2930 addresses the issue in a timely and overdue way.

[[Page 32202]]



                              {time}  1300

  It improves HUD's section 202 program, providing low-income elderly 
households access to affordable places to live. It is the only program 
that provides housing exclusively for the elderly. Established in 1959, 
it makes capital grants and project rental assistance available to 
developers so they can build housing that is affordable to low-income 
elderly households. Over 320,000 housing units are currently available.
  But it is not enough. There are 10 seniors waiting and in need for 
every housing unit that is available, and approximately 3.6 million of 
our seniors across the country in every State live in poverty. This 
bill is going to help make a down payment on what needs to be done. The 
U.S. population is aging; 12.4 percent are over 65, but in 18 years 
that is going to be 20 percent. We are going to need 730,000 units of 
housing. So I thank the sponsors, the leaders, to begin the process of 
moving forward.
  I want to mention just in a very practical way something that Mrs. 
Capito said. Housing is a partnership. What it does is unleash the 
activities of volunteers in our communities and housing advocates, and 
they brought this to our attention.
  Grand Way Commons in Vermont, opened by the Cathedral Square 
Corporation, is going to have a housing project that is going to help 
63 families, seniors, have access to housing, and they are combining it 
with services from United Way, from AARP and from the Vermont Nurses 
Association.
  Mr. Speaker, I urge a strong vote in support of moving ahead for 
senior housing.
  Mrs. CAPITO. Mr. Speaker, I have no further speakers, and I yield 
back the balance of my time.
  Mr. MAHONEY of Florida. Mr. Speaker, I yield 3 minutes to the 
gentleman from Massachusetts (Mr. Lynch).
  Mr. LYNCH. Mr. Speaker, I too want to thank Mrs. Capito, Chairman 
Frank, Chairman Waters, and also Mr. Mahoney from Florida for his great 
work on this.
  Mr. Speaker, as a cosponsor of H.R. 2930, I am pleased to support 
this bipartisan legislation to reform and strengthen HUD's section 202 
senior housing program.
  Mr. Speaker, affordable rental housing is essential to low-income 
seniors living on fixed income. In fact, according to the AARP, there 
are at least 10 seniors now on waiting lists for every unit of section 
202 housing that becomes available. However, in the meantime, for every 
unit of affordable housing that we create, two are being lost either 
through the conversion process to market-rate housing or by sponsors 
who are opting out of the program when their contracts expire. As a 
result, preserving our existing section 202 senior housing is and 
should be a national priority.
  H.R. 2930 eases the development and preservation of section 202 
housing for the elderly by reducing administrative burdens while 
simultaneously expanding the available options for recapitalization. 
This bill will give the owners of these communities the ability to 
leverage the equity in those properties. It will also allow them to 
access much-needed capital and benefit from the current low interest 
rates being offered by private lenders.
  Mr. Speaker, by delegating the processing of these capital advances 
to State housing agencies with staff and experience in housing 
development, the section 202 process will be aided and made more 
efficient.
  Mr. Speaker, as President John F. Kennedy once said to Congress 
nearly 45 years ago, ``The gradual increase in lifespan in our country 
and the number of our senior citizens who find themselves in later 
years dependent on affordable housing presents this Nation with 
increased opportunities. The increased life expectancy presents 
opportunities to draw upon the skills of our senior citizens and their 
wisdom and sagacity, and the opportunity to provide the respect and 
recognition that they have earned in their later years. It is not 
enough for a great Nation merely to have added years to their lives. 
Our objective must also be to add new life to those years.''
  I encourage my colleagues to support the growing population of 
seniors in our country, of these most vulnerable citizens in our 
country, by voting for this important bipartisan measure to aid the 
elderly in the section 202 program.
  Again, I would like to thank my colleague from Florida, Mr. Mahoney, 
for spearheading this important legislation.
  Mr. MAHONEY of Florida. Mr. Speaker, I have no further requests for 
time, and I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Florida (Mr. Mahoney) that the House suspend the rules 
and pass the bill, H.R. 2930, as amended.
  The question was taken; and (two-thirds being in the affirmative) the 
rules were suspended and the bill, as amended, was passed.
  A motion to reconsider was laid on the table.

                          ____________________