[United States Statutes at Large, Volume 124, 111th Congress, 2nd Session]
[From the U.S. Government Publishing Office, www.gpo.gov]


Public Law 111-374
111th Congress

An Act


 
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. <>

Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled, <>
SECTION 1. SHORT TITLE; REFERENCES.

(a) <>  Short Title.--This Act may be cited as
the ``Frank Melville Supportive Housing Investment Act of 2010''.

(b) References.--Except as otherwise expressly provided, wherever in
this Act an amendment or repeal is expressed in terms of an amendment
to, or repeal of, section 811 or any other provision of section 811, the
reference shall be considered to be made to section 811 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 8013).
SEC. 2. <>  TENANT-BASED RENTAL ASSISTANCE.

(a) Renewal Through Section 8.--Section 811(d)(4) is amended to read
as follows:
``(4) Tenant-based rental assistance.--
``(A) In general.--Tenant-based rental assistance
provided under subsection (b)(1) shall be provided under
section 8(o) of the United States Housing Act of 1937
(42 U.S.C. 1437f(o)).
``(B) Conversion of existing assistance.--There is
authorized to be appropriated for tenant-based rental
assistance under section 8(o) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(o)) for persons
with disabilities an amount not less than the amount
necessary to convert the number of authorized vouchers
and funding under an annual contributions contract in
effect on the date of enactment of the Frank Melville
Supportive Housing Investment Act of 2010. Such
converted vouchers may be administered by the entity
administering the vouchers prior to conversion. For
purposes of administering such converted vouchers, such
entities shall be considered a `public housing agency'
authorized to engage in the operation of tenant-based
assistance under section 8 of the United States Housing
Act of 1937.
``(C) Requirements upon turnover.--The Secretary
shall develop and issue, to public housing agencies that
receive voucher assistance made available under this
subsection and to public housing agencies that received
voucher assistance under section 8(o) of the United
States

[[Page 4090]]

Housing Act of 1937 (42 U.S.C. 1437f(o)) for non-elderly
disabled families pursuant to appropriation Acts for
fiscal years 1997 through 2002 or any other subsequent
appropriations for incremental vouchers for non-elderly
disabled families, guidance to ensure that, to the
maximum extent possible, such vouchers continue to be
provided upon turnover to qualified persons with
disabilities or to qualified non-elderly disabled
families, respectively.''.

(b) <>  Provision of Technical
Assistance.--The Secretary is authorized to the extent amounts are made
available in future appropriations Acts, to provide technical assistance
to public housing agencies and other administering entities to
facilitate using vouchers to provide permanent supportive housing for
persons with disabilities, help States reduce reliance on segregated
restrictive settings for people with disabilities to meet community care
requirements, end chronic homelessness, as ``chronically homeless'' is
defined in section 401 of the McKinney-Vento Homeless Assistance Act (42
U.S.C. 11361), and for other related purposes.
SEC 3. MODERNIZED <>  CAPITAL ADVANCE PROGRAM.

(a) Project Rental Assistance Contracts.--Section 811 is amended--
(1) in subsection (d)(2)--
(A) by inserting ``(A) Initial project rental
assistance contract.--'' after ``Project rental
assistance.--'';
(B) in the first sentence, by inserting after
``shall'' the following: ``comply with subsection (e)(2)
and shall'';
(C) by striking ``annual contract amount'' each
place such term appears and inserting ``amount provided
under the contract for each year covered by the
contract''; and
(D) by adding at the end the following new
subparagraph:
``(B) Renewal of and increases in contract amounts.--
``(i) Expiration of contract term.--Upon the
expiration of each contract term, subject to the
availability of amounts made available in appropriation
Acts, the Secretary shall adjust the annual contract
amount to provide for reasonable project costs,
including adequate reserves and service coordinators as
appropriate, except that any contract amounts not used
by a project during a contract term shall not be
available for such adjustments upon renewal.
``(ii) Emergency situations.--In the event of
emergency situations that are outside the control of the
owner, the Secretary shall increase the annual contract
amount, subject to reasonable review and limitations as
the Secretary shall provide.''.
(2) in subsection (e)(2)--
(A) in the first sentence, by inserting before the
period at the end the following: ``, except that, in the
case of the sponsor of a project assisted with any low-
income housing tax credit pursuant to section 42 of the
Internal Revenue Code of 1986 or with any tax-exempt
housing bonds, the contract shall have an initial term
of not less than 360 months and shall provide funding
for a term of 60 months''; and

[[Page 4091]]

(B) by striking ``extend any expiring contract'' and
insert ``upon expiration of a contract (or any renewed
contract), renew such contract''.

(b) Program Requirements.--Section 811 is amended--
(1) in subsection (e)--
(A) by striking the subsection heading and inserting
the following: ``Program Requirements'';
(B) by striking paragraph (1) and inserting the
following new paragraph:
``(1) Use restrictions.--
``(A) Term.--Any project for which a capital advance
is provided under subsection (d)(1) shall be operated
for not less than 40 years as supportive housing for
persons with disabilities, in accordance with the
application for the project approved by the Secretary
and shall, during such period, be made available for
occupancy only by very low-income persons with
disabilities.
``(B) Conversion.--If the owner of a project
requests the use of the project for the direct benefit
of very low-income persons with disabilities and,
pursuant to such request the Secretary determines that a
project is no longer needed for use as supportive
housing for persons with disabilities, the Secretary may
approve the request and authorize the owner to convert
the project to such use.''; and
(C) by adding at the end the following new
paragraphs:
``(3) Limitation on use of funds.--No assistance received
under this section (or any State or local government funds used
to supplement such assistance) may be used to replace other
State or local funds previously used, or designated for use, to
assist persons with disabilities.
``(4) Multifamily projects.--
``(A) Limitation.--Except as provided in
subparagraph (B), of the total number of dwelling units
in any multifamily housing project (including any
condominium or cooperative housing project) containing
any unit for which assistance is provided from a capital
grant under subsection (d)(1) made after the date of the
enactment of the Frank Melville Supportive Housing
Investment Act of 2010, the aggregate number that are
used for persons with disabilities, including supportive
housing for persons with disabilities, or to which any
occupancy preference for persons with disabilities
applies, may not exceed 25 percent of such total.
``(B) Exception.--Subparagraph (A) shall not apply
in the case of any project that is a group home or
independent living facility.''; and
(2) in subsection (l), by striking paragraph (4).

(c) Delegated Processing.--Subsection (g) of section 811 (42 U.S.C.
8013(g)) is amended--
(1) by striking ``Selection Criteria.--'' and inserting
``Selection Criteria and Processing.--(1) Selection criteria.--
'';
(2) by redesignating paragraphs (1), (2), (3), (4), (5),
(6), and (7) as subparagraphs (A), (B), (C), (D), (E), (G), and
(H), respectively; and
(3) by adding at the end the following new paragraph:

[[Page 4092]]

``(2) Delegated Processing.--
``(A) <>  In issuing a capital advance
under subsection (d)(1) for any multifamily project (but not
including any project that is a group home or independent living
facility) for which financing for the purposes described in the
last sentence of subsection (b) is provided by a combination of
the capital advance and sources other than this section, within
30 days of award of the capital advance, the Secretary shall
delegate review and processing of such projects to a State or
local housing agency that--
``(i) is in geographic proximity to the property;
``(ii) has demonstrated experience in and capacity
for underwriting multifamily housing loans that provide
housing and supportive services;
``(iii) may or may not be providing low-income
housing tax credits in combination with the capital
advance under this section; and
``(iv) <>  agrees to issue a firm
commitment within 12 months of delegation.
``(B) The Secretary shall retain the authority to process
capital advances in cases in which no State or local housing
agency is sufficiently qualified to provide delegated processing
pursuant to this paragraph or no such agency has entered into an
agreement with the Secretary to serve as a delegated processing
agency.
``(C) The Secretary shall--
``(i) <> develop criteria
and a timeline to periodically assess the performance of
State and local housing agencies in carrying out the
duties delegated to such agencies pursuant to
subparagraph (A); and
``(ii) retain the authority to review and process
projects financed by a capital advance in the event
that, after a review and assessment, a State or local
housing agency is determined to have failed to satisfy
the criteria established pursuant to clause (i).
``(D) An agency to which review and processing is delegated
pursuant to subparagraph (A) may assess a reasonable fee which
shall be included in the capital advance amounts and may
recommend project rental assistance amounts in excess of those
initially awarded by the Secretary. <> The
Secretary shall develop a schedule for reasonable fees under
this subparagraph to be paid to delegated processing agencies,
which shall take into consideration any other fees to be paid to
the agency for other funding provided to the project by the
agency, including bonds, tax credits, and other gap funding.
``(E) <>  Under such delegated system, the
Secretary shall retain the authority to approve rents and
development costs and to execute a capital advance within 60
days of receipt of the commitment from the State or local
agency. <> The Secretary shall provide to
such agency and the project sponsor, in writing, the reasons for
any reduction in capital advance amounts or project rental
assistance and such reductions shall be subject to appeal.''.

(d) Leveraging Other Resources.--Paragraph (1) of section 811(g) (as
so designated by subsection (c)(1) of this section) is amended by
inserting after subparagraph (E) (as so redesignated by subsection
(c)(2) of this section) the following new subparagraph:

[[Page 4093]]

``(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)--

[[Page 4094]]

(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 may provide for waiver
of the cost limits applicable pursuant to subparagraph
(A)--
``(i) in the cases in which the cost limits
established pursuant to section 212(e) of the
Cranston-Gonzalez National Affordable Housing Act
may be waived; and
``(ii) to provide for--
``(I) the cost of special design
features to make the housing accessible
to persons with disabilities;
``(II) the cost of special design
features necessary to make individual
dwelling units meet the special needs of
persons with disabilities; and
``(III) the cost of providing the
housing in a location that is accessible
to public transportation and community
organizations that provide supportive
services to persons with
disabilities.''.

(g) Congressional Notification of Waiver.--Section 811(k) is
amended--
(1) <> in paragraph (1), by adding the
following after the second sentence: ``Not later than the date
of the exercise of any waiver permitted under the previous
sentence, the Secretary shall notify the Committee on Banking,
Housing, and Urban Affairs of the Senate and the Committee on
Financial Services of the House of Representatives of the waiver
or the intention to exercise the waiver, together with a
detailed explanation of the reason for the waiver.''; and
(2) in paragraph (4)--
(A) by striking ``prescribe, subject to the
limitation under subsection (h)(6) of this section)''
and inserting ``prescribe)''; and
(B) <> by adding the following
after the first sentence: ``Not later than the date that
the Secretary prescribes a limit exceeding the 24 person
limit in the previous sentence, the Secretary shall
notify the Committee on Banking, Housing, and Urban
Affairs of the Senate and the Committee on Financial
Services of the House of Representatives of the limit or
the intention to prescribe a limit

[[Page 4095]]

in excess of 24 persons, together with a detailed
explanation of the reason for the new limit.''.

(h) Minimum Allocation for Multifamily Projects.--Paragraph (1) of
section 811(l) is amended to read as follows:
``(1) Minimum allocation for multifamily projects.--The
Secretary shall establish a minimum percentage of the amount
made available for each fiscal year for capital advances under
subsection (d)(1) that shall be used for multifamily projects
subject to subsection (e)(4).''.
SEC. 4. <>  PROJECT RENTAL ASSISTANCE.

Section 811(b) is amended--
(1) in the matter preceding paragraph (1), by striking ``is
authorized--'' and inserting ``is authorized to take the
following actions:'';
(2) in paragraph (1)--
(A) by striking ``(1) to provide tenant-based'' and
inserting ``(1) Tenant-based assistance.--To provide
tenant-based''; and
(B) by striking ``; and'' and inserting a period;
(3) in paragraph (2), by striking ``(2) to provide
assistance'' and inserting ``(2) Capital advances.--To provide
assistance''; and
(4) by adding at the end the following:
``(3) Project rental assistance.--
``(A) In general.--To offer additional methods of
financing supportive housing for non-elderly adults with
disabilities, the Secretary shall make funds available
for project rental assistance pursuant to subparagraph
(B) for eligible projects under subparagraph (C). The
Secretary shall provide for State housing finance
agencies and other appropriate entities to apply to the
Secretary for such project rental assistance funds,
which shall be made available by such agencies and
entities for dwelling units in eligible projects based
upon criteria established by the Secretary. The
Secretary may not require any State housing finance
agency or other entity applying for such project rental
assistance funds to identify in such application the
eligible projects for which such funds will be used, and
shall allow such agencies and applicants to subsequently
identify such eligible projects pursuant to the making
of commitments described in subparagraph (C)(ii).
``(B) Contract terms.--
``(i) Contract terms.--Project rental
assistance under this paragraph shall be
provided--
``(I) in accordance with subsection
(d)(2); and
``(II) under a contract having an
initial term of not less than 180 months
that provides funding for a term 60
months, which funding shall be renewed
upon expiration, subject to the
availability of sufficient amounts in
appropriation Acts.
``(ii) Limitation on units assisted.--Of the
total number of dwelling units in any multifamily
housing project containing any unit for which
project rental assistance under this paragraph is
provided, the aggregate number that are provided
such project rental assistance, that are used for
supportive housing for

[[Page 4096]]

persons with disabilities, or to which any
occupancy preference for persons with disabilities
applies, may not exceed 25 percent of such total.
``(iii) Prohibition of capital advances.--The
Secretary may not provide a capital advance under
subsection (d)(1) for any project for which
assistance is provided under this paragraph.
``(iv) Eligible population.--Project rental
assistance under this paragraph may be provided
only for dwelling units for extremely low-income
persons with disabilities and extremely low-income
households that include at least one person with a
disability.
``(C) Eligible projects.--An eligible project under
this subparagraph is a new or existing multifamily
housing project for which--
``(i) the development costs are paid with
resources from other public or private sources;
and
``(ii) a commitment has been made--
``(I) by the applicable State agency
responsible for allocation of low-income
housing tax credits under section 42 of
the Internal Revenue Code of 1986, for
an allocation of such credits;
``(II) by the applicable
participating jurisdiction that receives
assistance under the HOME Investment
Partnership Act, for assistance from
such jurisdiction; or
``(III) by any Federal agency or any
State or local government, for funding
for the project from funds from any
other sources.
``(D) State agency involvement.--Assistance under
this paragraph may be provided only for projects for
which the applicable State agency responsible for health
and human services programs, and the applicable State
agency designated to administer or supervise the
administration of the State plan for medical assistance
under title XIX of the Social Security Act, have entered
into such agreements as the Secretary considers
appropriate--
``(i) to identify the target populations to be
served by the project;
``(ii) to set forth methods for outreach and
referral; and
``(iii) to make available appropriate services
for tenants of the project.
``(E) Use requirements.--In the case of any project
for which project rental assistance is provided under
this paragraph, the dwelling units assisted pursuant to
subparagraph (B) shall be operated for not less than 30
years as supportive housing for persons with
disabilities, in accordance with the application for the
project approved by the Secretary, and such dwelling
units shall, during such period, be made available for
occupancy only by persons and households described in
subparagraph (B)(iv).
``(F) Report.--Not later than 3 years after the date
of the enactment of this paragraph, and again 2 years
thereafter, the Secretary shall submit to Congress a
report--

[[Page 4097]]

``(i) describing the assistance provided under
this paragraph;
``(ii) analyzing the effectiveness of such
assistance, including the effectiveness of such
assistance compared to the assistance program for
capital advances set forth under subsection (d)(1)
(as in effect pursuant to the amendments made by
such Act); and
``(iii) making recommendations regarding
future models for assistance under this
section.''.
SEC. 5. <> TECHNICAL CORRECTIONS.

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

[[Page 4098]]

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

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

[[Page 4099]]

SEC. 7. GAO STUDY.

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

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

Approved January 4, 2011.

LEGISLATIVE HISTORY--S. 1481 (H.R. 1675):
---------------------------------------------------------------------------

CONGRESSIONAL RECORD, Vol. 156 (2010):
Dec. 17, considered and passed Senate.
Dec. 21, considered and passed House.