A bill to establish a demonstration program to provide direct financing of housing for the elderly under section 236 of the National Housing Act.

Establises the National Elderly Housing Loan Fund in the U.S. Treasury. Authorizes the Secretary of Housing and Urban Development to use the amounts in such fund for the provision of housing for elderly or handicapped families by making direct mortgage loans to approved sponsors or public agencies.

Authorizes the Secretary to issue notes or other obligations in an aggregate amount of not to exceed $50,000,000 to the Secretary of the Treasury to carry out the purposes of this Act.