A bill to amend section 202 of the Housing Act of 1959 to reauthorize the housing for the elderly and handicapped program, and for other purposes.

Amends the Housing Act of 1959 to revise provisions relating to the program of loans to sponsors developing housing and related facilities projects for elderly or handicapped families.

Deletes provisions authorizing such loan program assistance to limited profit sponsors, consumer cooperatives, or public bodies or agencies (thus permitting such loans only to private nonprofit corporations).

Directs the Secretary of Housing and Urban Development to prohibit: (1) the sale or other transfer of a project developed under such loan program to any organization or individual except a qualified nonprofit sponsor who agrees to maintain the low-income elderly or handicapped character of the project for at least the remaining term of the original loan; and (2) the prepayment of any loan under such program in connection with such prohibited sales or transfers of assets.

Directs the Secretary, in selecting projects for such loan program, to assure the inclusion of special design features and congregate space necessary to meet the special needs of elderly and handicapped residents. Directs the Secretary to encourage the provision of small and scattered site group homes and independent living facilities for nonelderly handicapped persons and families.

Permits up to 25 percent of the units in a project financed under such program to be efficiency units, subject to the Secretary's determination that such units are appropriate for the elderly or handicapped. Authorizes the Secretary to require a sponsor of a housing project financed with a loan under such program to deposit an amount not to exceed $10,000 in a special escrow account to assure the sponsor's commitment and long-term management capabilities. Directs the Secretary, in establishing per unit cost limitations, to take into account design features necessary to meet the needs of elderly and handicapped residents. Directs the Secretary to assure that project sponsors may continue to utilize methods permitted on January 1, 1982, for the selection of contractors employed in the construction of such projects.

Limits the interest rate on loans under such program to the lesser of nine percent per year or the average Federal borrowing rate as determined by the Secretary considering specified factors.

Provides that the aggregate amount of obligations the Secretary may issue to the Secretary of the Treasury to finance such loan program shall be increased to specified amounts on October 1, 1982, October 1, 1983, and October 1, 1984.

Amends the United States Housing Act of 1937 to require that the greater of the amount of income derived from a family's net assets or ten percent of the value of such assets be included in that family's income for purposes of determining whether the family is eligible for assistance under the low-income housing rent subsidy program. Requires that, in computing annual income to determine tenant contribution toward rent, there be deducted from total income: (1) $300 for each minor; (2) medical expenses exceeding three percent of annual income; and (3) unusual expenses, including the cost of care for minor, disabled, or handicapped household members when such care is necessary to enable a family member to be employed and only up to the amount of income from such employment.

Amends the Housing and Community Development Act of 1974 to direct the Secretary, at the time of the original approval of a project authorized under the loan program for sponsors of housing for low-income aged and handicapped under the Housing Act of 1959, to reserve funds for rent subsidies for such project under the Housing Act of 1937. Requires that such reservation of funds: (1) be in amounts equal to the maximum permissible fair market rents for the units in such project; and (2) continue until the execution of the low-income housing assistance contract for such units in such project.

Amends the Congregate Housing Services Act of 1978 to authorize appropriations for FY 1983 through FY 1985 to carry out such Act (which provides for Federal aid to nutritional meals and personal assistance programs undertaken by public housing agencies or nonprofit corporations to help elderly, handicapped, or disabled residents of low-income housing avoid unnecessary institutionalization).