Section 202 Supportive Housing for the Elderly Act of 2007 - Title I: New Construction Reforms - (Sec. 101) Amends the Housing Act of 1959 regarding project rental assistance for supportive housing for the elderly.
Changes from discretionary to mandatory the authority of the Secretary of Housing and Urban Development to adjust the annual amount of a contract for project rental assistance to provide for reasonable project costs (including adequate reserves, supportive services, and service coordinators).
States that contract amounts not used by a project during a contract term shall not be available for such adjustments upon renewal.
Requires increased contract amounts, subject to reasonable review and limitations, in emergency situations outside the owner's control.
(Sec. 102) Modifies selection criteria.
Requires the Secretary's selection criteria to include the extent to which the applicant has ensured that a service coordinator will be employed or retained who has the managerial capacity and responsibility for: (1) assessing the service needs of residents on an ongoing basis; and (2) coordinating the provision of supportive services, as well as tailoring them to the individual needs of residents.
Directs the Secretary, in issuing a capital advance for specified kinds of construction, rehabilitation, or real property acquisition and related projects, to delegate review and processing of selected capital advance projects to a state or local housing agency meeting certain criteria within 30 days of the award of the capital advance.
Requires the Secretary to retain the authority to process capital advances if no state or local housing agency has either applied to provide delegated processing, or agreed with the Secretary to serve as a delegated processing agency.
Instructs the Secretary to develop a schedule of reasonable fees to be paid to delegated processing agencies.
(Sec. 104) States that owner deposits 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) Allows a national private, nonprofit owner of multiple housing projects to satisfy local governing board requirements by adding a local advisory board to its national governing board.
(Sec. 106) Directs the Secretary, subject to certain requirements, to permit an owner of assisted supportive housing for the elderly to apply for a preference in tenant selection for homeless elderly.
(Sec. 107) Modifies requirements for allocation of funds to nonmetropolitan areas to direct the Secretary either to operate a national competition for the nonmetropolitan funds, or to make allocations to regional offices of the Department of Housing and Urban Development (HUD).
Title II: Refinancing - (Sec. 201) Amends the American Homeownership and Economic Opportunity Act of 2000 to revise requirements governing prepayment of debt for project-based rental housing assistance programs.
Declares that a project sponsor's prepayment of indebtedness to the Secretary may involve refinancing of the loan if such refinancing results in a transaction in which the project owner will address the physical needs of the project, but only if as a result of the refinancing: (1) 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; and (2) the overall cost for providing section 8 rental assistance for the project (if any) does not increase.
(Sec. 202) Directs (current law merely authorizes) the Secretary, for purposes of underwriting a loan insured under the National Housing Act, to assume that any section 8 rental assistance contract relating to a project will be renewed for the term of such loan.
Requires the Secretary to make the same assumption when approving the standards used by authorized lenders to underwrite a loan refinanced with risk sharing. (In effect, authorizes new lenders to underwrite loans refinanced with risk sharing loans.)
(Sec. 203) Revises requirements for use of unexpended amounts.
Requires the Secretary to make available at least 50% of the annual savings resulting from reduced section 8 or other rental housing assistance contracts in a manner that is either: (1) advantageous to the tenants (as under existing law); or (2) used in the provision of affordable rental housing and related social services for elderly persons by the private nonprofit organization's project owner, sponsor, or developer.
Eliminates the 15% limitation on the use of unexpended funds for supportive services.
Allows the use of unexpended funds for: (1) the cost of reducing and reconfiguring obsolete units; (2) the payment of a developer's fee, determined in specified ways; and (3) the payment of equity, calculated on the basis of the project's appraised value, in the case of sale or refinance.
(Sec. 204) Authorizes the use of residual receipts held for a project, in connection with a prepayment or refinancing, in excess of $500 per unit for activities to increase the availability or provision of supportive services or other purposes approved by the Secretary.
(Sec. 205) Directs the Secretary to provide 20-year project-based rental assistance for a project under a senior preservation rental assistance contract in order to: (1) prevent displacement of elderly project residents in the case of refinancing or recapitalization; and (2) further project preservation and affordability.
(Sec. 206) Instructs the Secretary to study and report to Congress on: (1) a cost-benefit analysis of implementing a program under which the Secretary may sell mortgages associated with specified loans for supportive housing for the elderly; and (2) implementation of a demonstration program for sales of portfolios of such mortgages to housing finance agencies in three states.
Title III: Assisted Living Facilities - (Sec. 301) Amends the United States Housing Act of 1937 to revise the definition of "assisted living facility" to mean one owned by a private nonprofit organization, and either: (1) is licensed and regulated by the state or municipality or other political subdivision in which the facility is located; or (2) makes supportive services available to assist residents in carrying out the activities of daily living (ADLs), and provides separate dwelling units for residents, each of which may contain a full kitchen and bathroom.
(Sec. 302) Revises requirements for the monthly rental assistance on behalf of a family that uses an assisted living facility as a principal place of residence. Provides that a family may be required at the time it initially receives such assistance to pay rent in an amount exceeding 40% of its monthly adjusted income.
Title IV: Facilitating Affordable Housing Preservation Transactions - (Sec. 401) Prohibits the Secretary from imposing conditions upon the proceeds from the sale or refinancing of a multifamily housing project, or the transfer of an assistance contract on such property, where the Secretary's approval of prepayment is required, unless such condition is expressly authorized by an existing contract entered into between the Secretary and the project owner before enactment of this Act.
Declares any such condition previously imposed by the Secretary after January 1, 2005, at the project owner's option, to be considered void and unenforceable. Requires any agreement containing such a condition to be rescinded, and permits its subsequent re-issuance without the void condition.
[Congressional Bills 110th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2930 Introduced in House (IH)]
110th CONGRESS
1st Session
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.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
June 28, 2007
Mr. Mahoney of Florida introduced the following bill; which was
referred to the Committee on Financial Services
_______________________________________________________________________
A BILL
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.
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.
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.
TITLE III--ASSISTED LIVING FACILITIES
Sec. 301. Definition of assisted living facility.
Sec. 302. Monthly assistance payment under rental assistance.
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.--
``(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 Criteria and Processing.--(1) Selection
criteria.--'';
(2) by redesignating paragraphs (1) through (7) as
subparagraphs (A) through (G), respectively; and
(3) by adding at the end the following new paragraph:
``(2) Delegated Processing.--
``(A) In issuing a capital advance under this section, the
Secretary shall delegate review and processing of such selected
capital advance 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) 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.
``(C) Under such delegated system, the Secretary shall
retain the authority to approve rents and development costs and
to execute a capital advance within 90 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)''.
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'';
(C) by inserting ``, or any successor project-based
rental assistance program,'' after ``1701s))''; and
(D) by inserting before the semicolon the
following; ``, except that if, such project-based
rental assistance is no longer available to the project
as a result of insufficient amounts of appropriated
funds for such purpose, or is no longer available on
terms that would provide the project with income
equivalent to the project-based rental assistance, the
project-based rental assistance contract shall be
deemed terminated, including all obligations and
restrictions thereunder, and the project owner may
charge tenants rent sufficient for the project owner to
meet debt service payments and operating cost
requirements approved by the Secretary. Such contract
termination shall be an eligibility event for purposes
of section 8(t) of the United States Housing Act of
1937 (42 U.S.C. 1437f(t)) and the tenants of such
project shall be eligible for enhanced vouchers in
accordance with such section.''; and
(3) in paragraph (2)--
(A) by inserting ``(A)'' before ``a lower''; and
(B) by inserting ``, or (B) a transaction in which
the project owner will address the physical needs of
the project'' before the period at the end.
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 that furthers the
mission of the private nonprofit organization project owner,
private nonprofit organization project sponsor, or private
nonprofit organization project developer, relating to housing
and related social services,'';
(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 ``and'' 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; and
``(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 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) Mortgage Sale Demonstration.--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). The Secretary shall carry out a demonstration program, in
not more than three States, to sell portfolios of such mortgages to
State housing finance agencies for a price not to exceed the unpaid
principal balances of such mortgages and otherwise in accordance with
the requirements of such section 203.
``(g) Subordination or Assumption of Existing Debt.--In lieu of
prepayment under this section of the indebtedness with respect to a
project, the Secretary may approve--
``(1) in connection with new financing for the project, the
subordination of the loan for the project under section 202 of
the Housing Act of 1959 (as in effect before the enactment of
the Cranston-Gonzalez National Affordable Housing Act) and the
continued subordination of any other existing subordinate debt
previously approved by the Secretary to facilitate preservation
of the project as affordable housing, or
``(2) the assumption (which may include the subordination
described in paragraph (1)) of the loan for the project under
such section 202 in connection with the transfer of the project
with such a loan to a private nonprofit organization.
``(h) 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.
``(i) 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).
``(j) Definition of Private Nonprofit Organization.--For purposes
of this section, the term `private nonprofit organization' has the
meaning given such term in section 202(k) of the Housing Act of 1959
(12 U.S.C. 1701q(k)).''.
TITLE III--ASSISTED LIVING FACILITIES
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 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.''.
<all>
Introduced in House
Introduced in House
Referred to the House Committee on Financial Services.
Referred to the Subcommittee on Housing and Community Opportunity.
Committee Hearings Held.
Committee Consideration and Mark-up Session Held.
Ordered to be Reported (Amended) by Voice Vote.
Reported (Amended) by the Committee on Financial Services. H. Rept. 110-463.
Reported (Amended) by the Committee on Financial Services. H. Rept. 110-463.
Placed on the Union Calendar, Calendar No. 287.
Mr. Mahoney (FL) moved to suspend the rules and pass the bill, as amended.
Considered under suspension of the rules. (consideration: CR H14176-14180)
DEBATE - The House proceeded with forty minutes of debate on H.R. 2930.
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Passed/agreed to in House: On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote.(text: CR H14176-14178)
On motion to suspend the rules and pass the bill, as amended Agreed to by voice vote. (text: CR H14176-14178)
Motion to reconsider laid on the table Agreed to without objection.
Received in the Senate and Read twice and referred to the Committee on Banking, Housing, and Urban Affairs.