[Congressional Record (Bound Edition), Volume 154 (2008), Part 14]
[House]
[Pages 19507-19512]
[From the U.S. Government Publishing Office, www.gpo.gov]




        FRANK MELVILLE SUPPORTIVE HOUSING INVESTMENT ACT OF 2008

  Mr. MURPHY of Connecticut. Mr. Speaker, I move to suspend the rules 
and pass the bill (H.R. 5772) to amend section 811 of the Cranston-
Gonzalez National Affordable Housing Act to improve the program under 
such section for supportive housing for persons with disabilities, as 
amended.
  The Clerk read the title of the bill.
  The text of the bill is as follows:

                               H.R. 5772

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

     SECTION 1. SHORT TITLE; REFERENCES.

       (a) Short Title.--This Act may be cited as the ``Frank 
     Melville Supportive Housing Investment Act of 2008''.
       (b) References.--Except as otherwise expressly provided, 
     wherever in this Act an amendment or repeal is expressed in 
     terms of an amendment to, or repeal of, section 811 or any 
     other provision of section 811, the reference shall be 
     considered to be made to section 811 of the Cranston-Gonzalez 
     National Affordable Housing Act (42 U.S.C. 8013).

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

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

     SEC. 3. MODERNIZED CAPITAL ADVANCE PROGRAM.

       (a) Project Rental Assistance Contracts.--Section 811 is 
     amended--
       (1) in subsection (d)(2)--
       (A) by inserting ``(A) Initial project rental assistance 
     contract.--'' after ``Project rental assistance.--''
       (B) in the first sentence, by inserting after ``shall'' the 
     following: ``comply with subsection (e)(2) and shall'';
       (C) by striking ``annual contract amount'' each place such 
     term appears and inserting ``amount provided under the 
     contract for each year covered by the contract''; and
       (D) by adding at the end the following new subparagraph:
       ``(B) Renewal of and increases in contract amounts.--
       ``(i) Expiration of contract term.--Upon the expiration of 
     each contract term, subject to the availability of amounts 
     made available in appropriation Acts, the Secretary shall 
     adjust the annual contract amount to provide for reasonable 
     project costs, and any increases, including adequate reserves 
     and service coordinators, except that any contract amounts 
     not used by a project during a contract term shall not be 
     available for such adjustments upon renewal.
       ``(ii) Emergency situations.--In the event of emergency 
     situations that are outside the control of the owner, the 
     Secretary shall increase the annual contract amount, subject 
     to reasonable review and limitations as the Secretary shall 
     provide.''.
       (2) in subsection (e)(2)--
       (A) in the first sentence, by inserting before the period 
     at the end the following: ``, except that, in the case of the 
     sponsor of a project assisted with any low-income housing tax 
     credit pursuant to section 42 of the Internal Revenue Code of 
     1986 or with any tax-exempt housing bonds, the contract shall 
     have an initial term of not be less than 360 months and shall 
     provide funding for a term of 60 months''; and
       (B) by striking ``extend any expiring contract'' and insert 
     ``upon expiration of a contract (or any renewed contract), 
     renew such contract''.
       (b) Program Requirements.--Section 811 is amended--
       (1) in subsection (e)--
       (A) by striking the subsection heading and inserting the 
     following: ``Program Requirements'';
       (B) by striking paragraph (1) and inserting the following 
     new paragraph:
       ``(1) Use restrictions.--
       ``(A) Term.--Any project for which a capital advance is 
     provided under subsection (d)(1) shall be operated for not 
     less than 40 years as supportive housing for persons with 
     disabilities, in accordance with the application for the 
     project approved by the Secretary and shall, during such 
     period, be made available for occupancy only by very low-
     income persons with disabilities.
       ``(B) Conversion.--If the owner of a project requests the 
     use of the project for the direct benefit of very low-income 
     persons with disabilities and, pursuant to such request the 
     Secretary determines that a project is no longer needed for 
     use as supportive housing for persons with disabilities, the 
     Secretary may approve the request and authorize the owner to 
     convert the project to such use.''; and
       (C) by adding at the end the following new paragraphs:
       ``(3) Limitation on use of funds.--No assistance received 
     under this section (or any State or local government funds 
     used to supplement such assistance) may be used to replace 
     other State or local funds previously used, or designated for 
     use, to assist persons with disabilities.
       ``(4) Multifamily projects.--
       ``(A) Limitation.--Except as provided in subparagraph (B), 
     of the total number of dwelling units in any multifamily 
     housing project (including any condominium or cooperative 
     housing project) containing any unit for which assistance is 
     provided from a capital grant under subsection (d)(1) made 
     after the date of the enactment of the Frank Melville 
     Supportive Housing Investment Act of 2008, the aggregate 
     number that are used for persons with disabilities, including 
     supportive housing for persons with disabilities, or to which 
     any occupancy preference for persons with disabilities 
     applies, may not exceed 25 percent of such total.
       ``(B) Exception.--Subparagraph (A) shall not apply in the 
     case of any project that is a group home or independent 
     living facility.''; and
       (2) in subsection (l), by striking paragraph (4).
       (c) Delegated Processing.--Subsection (g) of section 811 
     (42 U.S.C. 8013(g)) is amended--
       (1) by striking ``Selection Criteria.--'' and inserting 
     ``Selection Criteria and Processing.--(1) Selection 
     criteria.--'';
       (2) by redesignating paragraphs (1), (2), (3), (4), (5), 
     (6), and (7) as subparagraphs (A), (B), (C), (D), (E), (G), 
     and (H), respectively;
       (3) by adding at the end the following new paragraph:
       ``(2) Delegated Processing.--
       ``(A) In issuing a capital advance under subsection (d)(1) 
     for any multifamily project (but

[[Page 19508]]

     not including any project that is a group home or independent 
     living facility) for which financing for the purposes 
     described in the last sentence of subsection (b) is provided 
     by a combination of the capital advance and sources other 
     than this section, within 30 days of award of the capital 
     advance, the Secretary shall delegate review and processing 
     of such projects to a State or local housing agency that--
       ``(i) is in geographic proximity to the property;
       ``(ii) has demonstrated experience in and capacity for 
     underwriting multifamily housing loans that provide housing 
     and supportive services;
       ``(iii) may or may not be providing low-income housing tax 
     credits in combination with the capital advance under this 
     section; and
       ``(iv) agrees to issue a firm commitment within 12 months 
     of delegation.
       ``(B) The Secretary shall retain the authority to process 
     capital advances in cases in which no State or local housing 
     agency has applied to 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.''.
       (d) Leveraging Other Resources.--Paragraph (1) of section 
     811(g) (as so designated by subsection (c)(1) of this 
     section) is amended by inserting after subparagraph (E) (as 
     so redesignated by subsection (c)(2) of this section) the 
     following new subparagraph:
       ``(F) the extent to which the per-unit cost of units to be 
     assisted under this section will be supplemented with 
     resources from other public and private sources;''.
       (e) Tenant Protections and Eligibility for Occupancy.--
     Section 811 is amended by striking subsection (i) and 
     inserting the following new subsection:
       ``(i) Admission and Occupancy.--
       ``(1) Tenant selection.--
       ``(A) Procedures.--An owner shall adopt written tenant 
     selection procedures that are satisfactory to the Secretary 
     as (i) consistent with the purpose of improving housing 
     opportunities for very low-income persons with disabilities; 
     and (ii) reasonably related to program eligibility and an 
     applicant's ability to perform the obligations of the lease. 
     Owners shall promptly notify in writing any rejected 
     applicant of the grounds for any rejection.
       ``(B) Requirement for occupancy.--Occupancy in dwelling 
     units provided assistance under this section shall be 
     available only to persons with disabilities and households 
     that include at least one person with a disability.
       ``(C) Availability.--Except only as provided in 
     subparagraph (D), occupancy in dwelling units in housing 
     provided with assistance under this section shall be 
     available to all persons with disabilities eligible for such 
     occupancy without regard to the particular disability 
     involved.
       ``(D) Limitation on occupancy.--Notwithstanding any other 
     provision of law, the owner of housing developed under this 
     section may, with the approval of the Secretary, limit 
     occupancy within the housing to persons with disabilities who 
     can benefit from the supportive services offered in 
     connection with the housing.
       ``(2) Tenant protections.--
       ``(A) Lease.--The lease between a tenant and an owner of 
     housing assisted under this section shall be for not less 
     than one year, and shall contain such terms and conditions as 
     the Secretary shall determine to be appropriate.
       ``(B) Termination of tenancy.--An owner may not terminate 
     the tenancy or refuse to renew the lease of a tenant of a 
     rental dwelling unit assisted under this section except--
       ``(i) for serious or repeated violation of the terms and 
     conditions of the lease, for violation of applicable Federal, 
     State, or local law, or for other good cause; and
       ``(ii) by providing the tenant, not less than 30 days 
     before such termination or refusal to renew, with written 
     notice specifying the grounds for such action.
       ``(C) Voluntary participation in services.--A supportive 
     service plan for housing assisted under this section shall 
     permit each resident to take responsibility for choosing and 
     acquiring their own services, to receive any supportive 
     services made available directly or indirectly by the owner 
     of such housing, or to not receive any supportive 
     services.''.
       (f) Development Cost Limitations.--Subsection (h) of 
     section 811 is amended--
       (1) in paragraph (1)--
       (A) by striking the paragraph heading and inserting ``Group 
     homes'';
       (B) in the first sentence, by striking ``various types and 
     sizes'' and inserting ``group homes'';
       (C) by striking subparagraph (E); and
       (D) by redesignating subparagraphs (F) and (G) as 
     subparagraphs (E) and (F), respectively;
       (2) in paragraph (3), by inserting ``established pursuant 
     to paragraph (1)'' after ``cost limitation''; and
       (3) by adding at the end the following new paragraph:
       ``(6) Applicability of home program cost limitations.--
       ``(A) In general.--The provisions of section 212(e) of the 
     Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
     12742(e)) and the cost limits established by the Secretary 
     pursuant to such section with respect to the amount of funds 
     under subtitle A of title II of such Act that may be invested 
     on a per unit basis, shall apply to supportive housing 
     assisted with a capital advance under subsection (d)(1) and 
     the amount of funds under such subsection that may be 
     invested on a per unit basis.
       ``(B) Waivers.--The Secretary shall provide for waiver of 
     the cost limits applicable pursuant to subparagraph (A)--
       ``(i) in the cases in which the cost limits established 
     pursuant to section 212(e) of the Cranston-Gonzalez National 
     Affordable Housing Act may be waived; and
       ``(ii) to provide for--

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

       (g) Repeal of Authority To Waive Size Limitations.--
     Paragraph (1) of section 811(k) is amended--
       (1) in paragraph (1), by striking the second sentence; and
       (2) in paragraph (4), by striking ``(or such higher number 
     of persons'' and all that follows through ``subsection 
     (h)(6))''.
       (h) Minimum Allocation for Multifamily Projects.--
     Subsection (l) of section 811, as amended by the preceding 
     provisions of this Act, is further amended by inserting 
     before paragraph (2) the following new paragraph:
       ``(1) Minimum allocation for multifamily projects.--The 
     Secretary shall establish a minimum percentage of the amount 
     made available for each fiscal year for capital advances 
     under subsection (d)(1) that shall be used for multifamily 
     projects subject to subsection (e)(4).''.

     SEC. 4. PROJECT RENTAL ASSISTANCE COMPETITIVE DEMONSTRATION 
                   PROGRAM.

       Section 811, as amended by the preceding provisions of this 
     Act, is further amended--
       (1) by redesignating subsections (k) through (n) as 
     subsections (l) through (o), respectively; and
       (2) by inserting after subsection (j) the following new 
     subsection:
       ``(k) Project Rental Assistance-Only Competitive 
     Demonstration Program.--
       ``(1) Authority.--The Secretary shall carry out a 
     demonstration program under this subsection to expand the 
     supply of supportive housing for non-elderly adults with 
     disabilities, under which the Secretary shall make funds 
     available for project rental assistance pursuant to paragraph 
     (2) for eligible projects under paragraph (3). The Secretary 
     shall provide for State housing finance agencies and other 
     appropriate entities to apply to the Secretary for such 
     project rental assistance funds, which shall be made 
     available by such agencies and entities for dwelling units in 
     eligible projects based upon criteria established by the 
     Secretary for the demonstration program under this 
     subsection. The Secretary may not require any State housing 
     finance agency or other entity applying for project rental 
     assistance funds under the demonstration program to identify 
     in such application the eligible projects for which such 
     funds will be used, and shall allow such agencies and 
     applicants to subsequently identify such eligible projects 
     pursuant to the making of commitments described in paragraph 
     (3)(B).
       ``(2) Project rental assistance.--
       ``(A) Contract terms.--Project rental assistance under the 
     demonstration program under this subsection shall be 
     provided--
       ``(i) in accordance with subsection (d)(2); and
       ``(ii) under a contract having an initial term of not less 
     than 180 months that provides funding for a term 60 months, 
     which funding shall be renewed upon expiration, subject to 
     the availability of sufficient amounts in appropriation Acts.
       ``(B) Limitation on units assisted.--Of the total number of 
     dwelling units in any multifamily housing project containing 
     any unit for which project rental assistance under the 
     demonstration program under this subsection is provided, the 
     aggregate number that are provided such project rental 
     assistance, that are used for supportive housing for persons 
     with disabilities, or to which any occupancy preference for 
     persons with disabilities applies, may not exceed 25 percent 
     of such total.
       ``(C) Prohibition of capital advances.--The Secretary may 
     not provide a capital advance under subsection (d)(1) for any 
     project for which assistance is provided under the 
     demonstration program.
       ``(D) Eligible population.--Project rental assistance under 
     the demonstration program under this subsection may be 
     provided only for

[[Page 19509]]

     dwelling units for extremely low-income persons with 
     disabilities and extremely low-income households that include 
     at least one person with a disability.
       ``(3) Eligible projects.--An eligible project under this 
     paragraph is a new or existing multifamily housing project 
     for which--
       ``(A) the development costs are paid with resources from 
     other public or private sources; and
       ``(B) a commitment has been made--
       ``(i) by the applicable State agency responsible for 
     allocation of low-income housing tax credits under section 42 
     of the Internal Revenue Code of 1986, for an allocation of 
     such credits;
       ``(ii) by the applicable participating jurisdiction that 
     receives assistance under the HOME Investment Partnership 
     Act, for assistance from such jurisdiction; or
       ``(iii) by any Federal agency or any State or local 
     government, for funding for the project from funds from any 
     other sources.
       ``(4) State agency involvement.--Assistance under the 
     demonstration may be provided only for projects for which the 
     applicable State agency responsible for health and human 
     services programs, and the applicable State agency designated 
     to administer or supervise the administration of the State 
     plan for medical assistance under title XIX of the Social 
     Security Act, have entered into such agreements as the 
     Secretary considers appropriate--
       ``(A) to identify the target populations to be served by 
     the project;
       ``(B) to set forth methods for outreach and referral; and
       ``(C) to make available appropriate services for tenants of 
     the project.
       ``(5) Use requirements.--In the case of any project for 
     which project rental assistance is provided under the 
     demonstration program under this subsection, the dwelling 
     units assisted pursuant to paragraph (2) shall be operated 
     for not less than 30 years as supportive housing for persons 
     with disabilities, in accordance with the application for the 
     project approved by the Secretary, and such dwelling units 
     shall, during such period, be made available for occupancy 
     only by persons and households described in paragraph (2)(D).
       ``(6) Report.--Upon the expiration of the 5-year period 
     beginning on the date of the enactment of the Frank Melville 
     Supportive Housing Investment Act of 2008, the Secretary 
     shall submit to the Congress a report describing the 
     demonstration program under this subsection, analyzing the 
     effectiveness of the program, including the effectiveness of 
     the program compared to the program for capital advances in 
     accordance with subsection (d)(1) (as in effect pursuant to 
     the amendments made by such Act), and making recommendations 
     regarding future models for assistance under this section 
     based upon the experiences under the program.''.

     SEC. 5. TECHNICAL CORRECTIONS.

       Section 811 is amended--
       (1) in subsection (a)--
       (A) in paragraph (1), by striking ``and'' at the end;
       (B) in paragraph (2)--
       (i) by striking ``provides'' and inserting ``makes 
     available''; and
       (ii) by striking the period at the end and inserting ``; 
     and'' ; and
       (C) by adding at the end the following new paragraph:
       ``(3) promotes and facilitates community integration for 
     people with significant and long-term disabilities.'';
       (2) in subsection (c)--
       (A) in paragraph (1), by striking ``special'' and inserting 
     ``housing and community-based services''; and
       (B) in paragraph (2)--
       (i) by striking subparagraph (A) and inserting the 
     following:
       ``(A) make available voluntary supportive services that 
     address the individual needs of persons with disabilities 
     occupying such housing;''; and
       (ii) in subparagraph (B), by striking the comma and 
     inserting a semicolon;
       (3) in subsection (d)(1), by striking ``provided under'' 
     and all that follows through ``shall bear'' and inserting 
     ``provided pursuant to subsection (b)(1) shall bear'';
       (4) in subsection (f)--
       (A) in paragraph (3)--
       (i) in subparagraph (B), by striking ``receive'' and 
     inserting ``be offered'';
       (ii) by striking subparagraph (C) and inserting the 
     following:
       ``(C) evidence of the applicant's experience in--
       ``(i) providing such supportive services; or
       ``(ii) creating and managing structured partnerships with 
     service providers for the delivery of appropriate community-
     based services;'';
       (iii) in subparagraph (D), by striking ``such persons'' and 
     all that follows through ``provision of such services'' and 
     inserting ``tenants''; and
       (iv) in subparagraph (E), by inserting ``other Federal, 
     and'' before ``State''; and
       (B) in paragraph (4), by striking ``special'' and inserting 
     ``housing and community-based services'';
       (5) in subsection (g), in paragraph (1) (as so redesignated 
     by section 3(c)(1) of this Act)--
       (A) in subparagraph (D) (as so redesignated by section 
     3(c)(2) of this Act), by striking ``the necessary supportive 
     services will be provided'' and inserting ``appropriate 
     supportive services will be made available''; and
       (B) by striking subparagraph (E) (as so redesignated by 
     section 3(c)(2) of this Act) and inserting the following:
       ``(E) the extent to which the location and design of the 
     proposed project will facilitate the provision of community-
     based supportive services and address other basic needs of 
     persons with disabilities, including access to appropriate 
     and accessible transportation, access to community services 
     agencies, public facilities, and shopping;'';
       (6) in subsection (j)--
       (A) by striking paragraph (4); and
       (B) by redesignating paragraphs (5), (6), and (7) as 
     paragraphs (4), (5), and (6), respectively;
       (7) in subsection (l) (as so redesignated by section 4(1) 
     of this Act)--
       (A) in paragraph (1), by inserting before the period at the 
     end of the first sentence the following: ``, which provides a 
     separate bedroom for each tenant of the residence'';
       (B) by striking paragraph (2) and inserting the following:
       ``(2)(A) The term `person with disabilities' means a person 
     who is 18 years of age or older and less than 62 years of 
     age, who--
       ``(i) has a disability as defined in section 223 of the 
     Social Security Act;
       ``(ii) is determined, pursuant to regulations issued by the 
     Secretary, to have a physical, mental, or emotional 
     impairment which--
       ``(I) is expected to be of long-continued and indefinite 
     duration;
       ``(II) substantially impedes his or her ability to live 
     independently; and
       ``(III) is of such a nature that such ability could be 
     improved by more suitable housing conditions; or
       ``(iii) has a developmental disability as defined in 
     section 102 of the Developmental Disabilities Assistance and 
     Bill of Rights Act of 2000.
       ``(B) Such term shall not exclude persons who have the 
     disease of acquired immunodeficiency syndrome or any 
     conditions arising from the etiologic agent for acquired 
     immunodeficiency syndrome. Notwithstanding any other 
     provision of law, no individual shall be considered a person 
     with disabilities, for purposes of eligibility for low-income 
     housing under this title, solely on the basis of any drug or 
     alcohol dependence. The Secretary shall consult with other 
     appropriate Federal agencies to implement the preceding 
     sentence.
       ``(C) The Secretary shall prescribe such regulations as may 
     be necessary to prevent abuses in determining, under the 
     definitions contained in this paragraph, the eligibility of 
     families and persons for admission to and occupancy of 
     housing assisted under this section. Notwithstanding the 
     preceding provisions of this paragraph, the term `person with 
     disabilities' includes two or more persons with disabilities 
     living together, one or more such persons living with another 
     person who is determined (under regulations prescribed by the 
     Secretary) to be important to their care or well-being, and 
     the surviving member or members of any household described in 
     subparagraph (A) who were living, in a unit assisted under 
     this section, with the deceased member of the household at 
     the time of his or her death.'';
       (C) by striking paragraph (3) and inserting the following 
     new paragraph:
       ``(3) The term `supportive housing for persons with 
     disabilities' means dwelling units that--
       ``(A) are designed to meet the permanent housing needs of 
     very low-income persons with disabilities; and
       ``(B) are located in housing that make available supportive 
     services that address the individual health, mental health, 
     or other needs of such persons.'';
       (D) in paragraph (5), by striking ``a project for''; and
       (E) in paragraph (6)--
       (i) by inserting after and below subparagraph (D) the 
     matter to be inserted by the amendment made by section 841 of 
     the American Homeownership and Economic Opportunity Act of 
     2000 (Public Law 106-569; 114 Stat. 3022); and
       (ii) in the matter inserted by the amendment made by 
     subparagraph (A) of this paragraph, by striking ``wholly 
     owned and''; and
       (8) in subsection (m) (as so redesignated by section 4(1) 
     of this Act)--
       (A) in paragraph (2), by striking ``subsection (c)(1)'' and 
     inserting ``subsection (d)(1)''; and
       (B) in paragraph (3), by striking ``subsection (c)(2)'' and 
     inserting ``subsection (d)(2)''.

     SEC. 6. AUTHORIZATION OF APPROPRIATIONS.

       Subsection (n) of section 811 (as so redesignated by 
     section 4(1) of this Act) is amended to read as follows:
       ``(n) Authorization of Appropriations.--There is authorized 
     to be appropriated for each of fiscal years 2008 through 2012 
     the following amounts:
       ``(1) Capital advance/prac program.--For providing 
     assistance pursuant to subsection (b), such sums as may be 
     necessary.
       ``(2) Demonstration program.--For carrying out the 
     demonstration program under subsection (k), such sums as may 
     be necessary to provide 2,500 incremental dwelling units 
     under such program in each of fiscal years 2008 and 2009 and 
     5,000 incremental dwelling units under such program in each 
     of fiscal years 2010, 2011, and 2012.''.

     SEC. 7. NEW REGULATIONS AND PROGRAM GUIDANCE.

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

[[Page 19510]]



     SEC. 8. GAO STUDY.

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

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

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


                             General Leave

  Mr. MURPHY of Connecticut. Mr. Speaker, I ask unanimous consent that 
all Members have 5 legislative days within which to revise and extend 
their remarks and include extraneous material on this legislation.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentleman from Connecticut?
  There was no objection.
  Mr. MURPHY of Connecticut. Mr. Speaker, I yield myself such time as I 
may consume.
  Mr. Speaker, I would like to thank the Chamber for its indulgence in 
allowing us to bring before it today the Frank Melville Supportive 
Housing Investment Act of 2008, which is a reauthorization and 
improvement upon the existing section 811 supportive housing statute.
  Before I go into very briefly the details and importance of this act, 
I would just like to thank those that have worked on this bill and this 
issue, including the chairman of the committee, Chairman Frank, the 
chairwoman of the Subcommittee on Housing, Representative Waters, and 
especially the Republican cosponsor of this legislation, along with 
myself, Representative Biggert, who has been just a boundless champion 
for the issue of supportive housing, the issue of compassionate care 
for those individuals with physical and mental disabilities, and also 
to Mrs. Capito, who has led this committee and this issue so ably.
  Mr. Speaker, the 811 program today is the Nation's primary program 
for funding supportive housing. What is supportive housing? Supportive 
housing is housing for people with largely mental disability or 
physical disability, that provides some basic supports around those 
living arrangements so that those individuals can live independently. 
Job skills, medication adherence, social work, a small amount of 
support given to these individuals living with these disabilities can 
make sure that those individuals can live on their own independently 
and live full and productive lives. It is a cost-effective and 
compassionate program that, unfortunately, has not worked as well as it 
should have in the past several years.
  The Department of Housing and Urban Development estimates, Mr. 
Speaker, that 1.3 million individuals, non-elderly disabled across this 
country, are low income, living in substandard housing; 1.3 million 
people, and our 811 program simply hasn't reached enough of them.
  Last year, less than 1,000 new units were built around this country 
with 811 dollars, and, as we heard before the subcommittee, it has 
taken sometimes 6 years for projects funded with 811 capital dollars to 
go from the development stage to the completion stage.

                              {time}  1830

  That's an unacceptably long amount of time for projects that 
sometimes only encompass four or six or eight units of housing. This 
bill sets a, I think, very aggressive but reasonable goal, a tripling 
over time the number of units constructed in this country with 811 
dollars.
  How does it do this? Primarily it does this by taking the $87 million 
right now that are used as vouchers in the 811 program, and 
transferring those vouchers over to the larger section 8 program. What 
we have learned is that these vouchers that are supposed to be 
dedicated to people with disabilities have not been traced 
sufficiently, and in fact, probably are going to people without 
disabilities, in many cases.
  The section 8 program will do, I think, a much better job, is much 
better equipped to track those vouchers going forward. We then take 
that money that has now been freed up through the transition of those 
vouchers to the section 8 program and use much of it to fund a new 
demonstration program that will seek to leverage the capital dollars 
from coming from the 811 program with low-income tax credits, private 
dollars and State partnerships.
  By doing that, we will be able to take existing, affordable housing 
projects that are in the planning stages and, with small amounts of 
rental subsidies, be able to reach out to those developers and 
essentially make them a deal that we will give them a small rental 
subsidy if, in exchange, they carve out a small number of units to be 
supportive housing. This has worked remarkably well in States that have 
endeavored this program already. North Carolina comes to mind most 
immediately where, over the last 7 years, 1,200 units of supportive 
housing have been built, in part, with this strategy put in place.
  There are a number of other important improvements to the 811 program 
in this act, allowing States and State housing agencies to do much of 
the bureaucratic paperwork involved in these applications, which we 
believe will greatly expedite the application process, a study which 
will look into how we can better use dollars in existing housing 
projects, 202 housing projects, and other affordable housing projects, 
to get tenants that are living in other affordable housing sites, some 
basic support services that will help them live independently. It is a 
vast improvement over the current law, and we hope, as I said, it will 
potentially triple the number of units built across this country.
  This is important. These are some of the country's most vulnerable 
citizens, who are playing by the rules, doing everything we ask, but 
simply need a small apartment of help to be able to live independent, 
productive lives in their community. This is one of the most 
compassionate things that this Congress can do is to try to extend out 
that basic building block of society, good, affordable housing to 
individuals with mental disability, with mental illness and with 
physical disabilities.
  One last note, this bill is entitled the Frank Melville Supportive 
Housing Investment Act, and it is titled after the late Frank Melville, 
the founder, along with his wife, Ellen, of the Melville Charitable 
Trust. This charitable trust that they have built up through their 
generosity, the Melville family's generosity, has funded housing 
advocacy and specifically supportive housing advocacy across this 
country for a number of years. We would not have the housing advocacy 
community that exists today if it weren't for the generosity of the 
Melvilles.
  Unfortunately, this world lost Frank Melville, who also happened to 
be a constituent of mine, recently, and this act, I think, is a very 
appropriate testament to the work that he has done.
  I thank, again, Mrs. Biggert for her great work over the years on 
this issue.
  Mr. Speaker, I reserve the balance of my time.
  Mrs. CAPITO. I would like to thank the sponsor of the bill, my 
colleague from Connecticut.
  Mr. Speaker, I would like to yield time now to the cosponsor of the 
bill, a champion for housing in all forms and fashion, but particularly 
supportive housing, Mrs. Biggert from Illinois.
  Mrs. BIGGERT. I thank the gentlelady for yielding.
  At this time I would like to submit for the Record a letter addressed 
to

[[Page 19511]]

Speaker Pelosi from the National Alliance on Mental Illness in support 
of this legislation.

                                       National Alliance on Mental


                                                      Illness,

                                Arlington, VA, September 16, 2008.
     Hon. Nancy Pelosi,
     Speaker, House of Representatives,
     Washington, DC.
       Dear Speaker Pelosi: On behalf of the 210,000 members and 
     1,200 affiliates of the National Alliance on Mental Illness 
     (NAMI), I am writing to offer our strong support for the 
     Frank Melville Supportive Housing Investment Act of 2008 
     (H.R. 5772). As the Nation's largest organization 
     representing people with serious mental illness and their 
     families, NAMI is especially grateful to Chairman Barney 
     Frank and the bill's sponsors, Representatives Chris Murphy 
     and Judy Biggert, for their leadership in moving this 
     legislation forward.
       As you know, Section 811 is a critical affordable housing 
     resource for non-elderly people with severe disabilities. 
     While the program has been effective in developing permanent 
     supportive housing, improvements are needed. H.R. 5772 will 
     streamline and simplify the existing process by which 811 
     sponsors compete for new projects. It will also reform 
     Section 811 and create an important demonstration program to 
     allow for investment of new capital resources from programs 
     such as the Low-Income Housing Tax Credit and HOME in 
     supportive housing developments. Finally H.R. 5772 would 
     resolve the current threat to the program from the Section 
     811 ``mainstream'' voucher program.
       NAMI applauds their commitment to improving supportive 
     housing options for people with severe disabilities. Thank 
     you for bringing this legislation to the full House. NAMI 
     urges all members to support passage of H.R. 5772.
           Sincerely,
                                           Michael J. Fitzpatrick,
                                               Executive Director.

  Mr. Speaker, I am very proud to rise today as the cosponsor of this 
legislation, and I certainly urge my colleagues to support it.
  I would also like to thank my good friend, Congressman Murphy, who 
introduced the bill, the Frank Melville Supportive Housing Investment 
Act of 2008, and thank him for his hard work to modernize the 
Department of Housing and Urban Development, HUD's section 811 program.
  For the past 4 years, this administration has proposed deep cuts to 
the section 811 program. In response, for the past 4 years we have sent 
letters to the Appropriations Committee leaders urging them to reject 
those cuts and fully fund the program.
  Why? Because section 811 is the only Federal program that funds 
housing and vouchers for people with disabilities who seek to live as 
independent members of the community.
  I am pleased to report that for the last 4 years, Congress has agreed 
to fully fund this important program. This year, we are going beyond 
the appropriations. We are seeking to modernize the program, which 
hasn't been updated for over 15 years.
  H.R. 5772 is critical to the goal of increasing the number of 
affordable units for people with disabilities. By better aligning this 
section 811 program with other Federal, State and local funding 
resources, it allows nonprofit sponsors to more easily leverage 
additional financing, thereby maximizing Federal dollars.
  By requiring HUD to simplify its more than 400 pages of guidelines, 
it streamlines the program. In addition, it delegates grant authority 
to State and local housing authorities, which housing experts agree 
will make the program more efficient.
  Finally, the bill calls for a new demonstration project that is 
estimated to generate as many as 3,000 new units of housing for 
nonelderly people with disabilities. The bill we are considering today 
will make the program more user friendly and attractive to nonprofits.
  Before I close, I would like to once again thank my colleague from 
Connecticut, Congressman Murphy, for working on this bill. In addition, 
I would like to thank Chairman Frank and Ranking Member Bachus, 
Chairwoman Waters and Ranking Member Capito, as well as their staffs, 
for helping us with this legislation.
  Of course, I cannot forget to thank one of my constituents from 
Tinley Park, Illinois, Tony Paulauski, the executive director of the 
Arc of Illinois, who testified before our committee about the need for 
these reforms.
  On a similar note, I would also like to thank the wonderful people in 
Illinois that work for Trinity Services and Cornerstone Services, as 
well as all of those volunteers, parents and other members of the 
community who have reached out to express their support for this 
legislation.
  Mr. Speaker, this is a commonsense bill that modernizes an important 
Federal housing program that hasn't been updated. I urge my colleagues 
to support it.
  Mr. MURPHY of Connecticut. Mr. Speaker, I would like to recognize the 
gentleman from Massachusetts (Mr. Lynch) for as much time as he may 
consume.
  Mr. LYNCH. I thank the gentleman from Connecticut for yielding me 
this time.
  Mr. Speaker, I rise in support of H.R. 5772, the Frank Melville 
Supportive Housing Investment Act of 2008. This is the only HUD 
permanent supportive housing program that is exclusively for people 
with disabilities.
  I am pleased to support this legislation, which will reform and 
strengthen section 811 of the Cranston-Gonzalez National Affordable 
Housing Act. This bill will actually increase efficiency and better 
serve eligible disabled persons and, importantly, I think, this bill 
will streamline the bureaucracy.
  Those of us who have tried to assist disabled persons with their 
housing understand the hoops that one must go through. This bill, I 
think, through the great work of Congressman Murphy and others, has 
solved much of that. But there is much to be said about the 
improvements to the current rental assistance program and the system 
for disbursing capital advances, which actually create and maintain 
affordable units.
  Additionally, this bill will require HUD to carry out an important 
competitive demonstration program to expand the supply of truly 
supportive housing. I am especially pleased that this bill also 
authorizes appropriations for that assistance under section 8 in fiscal 
year 2009.
  Having grown up in public housing, I am probably more aware than most 
of the important role that public housing fills in terms of the needs 
of our disabled community. This is especially true for our disabled 
citizens, who have a greater need for housing and facilities that meet 
their particular disabilities.
  I encourage my colleagues to support those most in need in our 
country by voting for this important bipartisan measure. I must say Mr. 
Murphy has been very gracious in recognizing everyone who has been 
involved here, but I must, in turn, I think, recognize his great 
involvement and great leadership here.
  On behalf of all the families out there, like mine, who have disabled 
persons, and we recognize the challenges that they deal with every day 
on a regular basis, I just want to extend our thanks to Chris Murphy, 
the Congressman from Connecticut, for his great work on this bill.
  Mrs. CAPITO. I would like to join in the chorus of support.
  Mr. Speaker, as we have heard, the section 811 program provides 
housing assistance and supportive services for persons with 
disabilities. I have seen firsthand in my own district the good works 
that this program provides, and I am sure it is the same for members 
across the Nation.
  The timing of the passage of this legislation is especially 
significant, as the House just passed the Americans with Disabilities 
Act amendments earlier today. It is appropriate that we would now 
consider legislation to improve our housing programs for those with 
disabilities who choose to live independently.
  We have heard a good review, I believe, of the program. We know that 
it allows persons with disabilities to live independently. I think 
that's important to emphasize the independent nature of the 811 
program. It is also the only Federal program that is solely dedicated 
to very low-income folks with serious or long-term disabilities. 
Unfortunately, sometimes those are coupled together because you have a 
serious or long-term disability, which sometimes prevents you from 
working,

[[Page 19512]]

and it puts you into that low or very low-income bracket.
  We have talked about some of the revisions, programatic issues and 
changes that have been made, terminating 811's Mainstream Tenant-Based 
Rental Assistance Program and transferring those vouchers to section 8, 
modernizing the Capital Advance Program, establishing a project rental 
assistance demonstration program and revising the definitions of 
``group home,'' ``people with disabilities,'' ``supportive housing for 
persons with disabilities.''
  Also in this bill, we repeal the authority of the Secretary to waive 
size limitations on group homes and individual living facilities. These 
improvements to the program will help provide a better life for 
individuals with disabilities and their families.
  The ability to live independently with the assistance of supportive 
services is critical to improving the lives of the disabled and 
allowing them to be active participants in their communities.
  I join in thanking Chairman Frank and Ranking Member Bachus. I would 
like to particularly thank Mr. Murphy for his leadership on this issue 
and Mrs. Biggert for her leadership as well.
  Mr. Speaker, I yield back the balance of my time.
  Mr. MURPHY of Connecticut. I thank Mrs. Capito and Mrs. Biggert for 
their leadership on this issue.
  Just in closing, Mr. Speaker, although this bill will help scores of 
individuals with physical handicaps, I think, to myself, of how much 
help this is going to provide the millions of individuals across this 
country with mental illness that are struggling to live independently.
  Years ago, when this country and States across this Nation made the 
decision, the right decision to close down the institutions that housed 
many of those individuals, we made a promise that we would find new 
housing, new opportunities for those individuals to live on their own 
in the community.
  We have not lived up to that promise. In Connecticut, those of us 
that care about this issue often wear a button around the halls of the 
State legislature entitled ``Keep the Promise.'' This legislation, I 
believe, is a step towards doing just that.
  With that, I urge my colleagues to support the bill.
  I yield back the balance of my time.
  The SPEAKER pro tempore. The question is on the motion offered by the 
gentleman from Connecticut (Mr. Murphy) that the House suspend the 
rules and pass the bill, H.R. 5772, 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.

                          ____________________