Home > 106th Congressional Bills > H.R. 202 (ih) To restructure the financing for assisted housing for senior citizens and otherwise provide for the preservation of such housing in the 21st Century, and for other purposes. [Introduced in House] ...

H.R. 202 (ih) To restructure the financing for assisted housing for senior citizens and otherwise provide for the preservation of such housing in the 21st Century, and for other purposes. [Introduced in House] ...


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106th CONGRESS

  1st Session

                               H. R. 202

_______________________________________________________________________

                                 AN ACT

  To provide for the preservation of assisted housing for low-income 
         elderly persons, disabled persons, and other families.
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
  
106th CONGRESS
  1st Session
                                H. R. 202

_______________________________________________________________________

                                 AN ACT


 
  To provide for the preservation of assisted housing for low-income 
         elderly persons, disabled persons, and other families.

    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 ``Preserving 
Affordable Housing for Senior Citizens and Families into the 21st 
Century Act''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
Sec. 2. Regulations.
Sec. 3. Effective date.
   TITLE I--CONVERSION OF FINANCING AND REFINANCING FOR SECTION 202 
                   SUPPORTIVE HOUSING FOR THE ELDERLY

Sec. 101. Conversion of financing
Sec. 102. Prepayment and refinancing.
 TITLE II--AUTHORIZATION OF APPROPRIATIONS FOR SUPPORTIVE HOUSING FOR 
               THE ELDERLY AND PERSONS WITH DISABILITIES

Sec. 201. Supportive housing for elderly persons.
Sec. 202. Supportive housing for persons with disabilities.
Sec. 203. Service coordinators and congregate services for elderly and 
                            disabled housing.
TITLE III--EXPANDING HOUSING OPPORTUNITIES FOR THE ELDERLY AND PERSONS 
                           WITH DISABILITIES

                  Subtitle A--Housing for the Elderly

Sec. 301. Matching grant program.
Sec. 302. Eligibility of for-profit limited partnerships.
Sec. 303. Mixed funding sources.
Sec. 304. Authority to acquire structures.
Sec. 305. Mixed-income occupancy.
Sec. 306. Use of project reserves.
Sec. 307. Commercial activities.
Sec. 308. Mixed finance pilot program.
Sec. 309. Grants for conversion of elderly housing to assisted living 
                            facilities.
Sec. 310. Grants for conversion of public housing projects to assisted 
                            living facilities.
Sec. 311. Use of section 8 assistance for assisted living facilities.
Sec. 312. Annual HUD inventory of assisted housing designated for 
                            elderly persons.
Sec. 313. Treatment of applications.
           Subtitle B--Housing for Persons With Disabilities

Sec. 321. Matching grant program.
Sec. 322. Eligibility of for-profit limited partnerships.
Sec. 323. Mixed funding sources.
Sec. 324. Tenant-based assistance.
Sec. 325. Project size.
Sec. 326. Use of project reserves.
Sec. 327. Commercial activities.
                      Subtitle C--Other Provisions

Sec. 341. Service coordinators.
Sec. 342. Commission on Affordable Housing and Health Care Facility 
                            Needs in the 21st Century.
     TITLE IV--RENEWAL OF EXPIRING RENTAL ASSISTANCE CONTRACTS AND 
                        PROTECTION OF RESIDENTS

Sec. 401. Findings and purpose.
Sec. 402. Renewal of expiring contracts and enhanced vouchers for 
                            project residents.
Sec. 403. Section 236 assistance.
Sec. 404. Matching grant program for affordable housing preservation.
Sec. 405. Rehabilitation of assisted housing.
Sec. 406. Technical assistance.
Sec. 407. Termination of section 8 contract and duration of renewal 
                            contract.
Sec. 408. Enhanced voucher eligibility for residents of flexible 
                            subsidy properties.
Sec. 409. Enhanced disposition authority.
Sec. 410. Assistance for nonprofit purchasers preserving affordable 
                            housing.
TITLE V--MORTGAGE INSURANCE FOR HEALTH CARE FACILITIES AND HOME EQUITY 
                          CONVERSION MORTGAGES

Sec. 501. Rehabilitation of existing hospitals, nursing homes, and 
                            other facilities.
Sec. 502. New health care facilities.
Sec. 503. Hospitals and hospital-based health care facilities.
Sec. 504. Insurance for mortgages to refinance existing home equity 
                            conversion mortgages.

SEC. 2. REGULATIONS.

    The Secretary of Housing and Urban Development shall issue any 
regulations to carry out this Act and the amendments made by this Act 
that the Secretary determines may or will affect tenants of federally 
assisted housing only after notice and opportunity for public comment 
in accordance with the procedure under section 553 of title 5, United 
States Code, applicable to substantive rules (notwithstanding 
subsections (a)(2), (b)(B), and (d)(3) of such section). Notice of such 
proposed rulemaking shall be provided by publication in the Federal 
Register. In issuing such regulations, the Secretary shall take such 
actions as may be necessary to ensure that such tenants are notified 
of, and provided an opportunity to participate in, the rulemaking, as 
required by such section 553.

SEC. 3. EFFECTIVE DATE.

    (a) In General.--The provisions of this Act and the amendments made 
by this Act are effective as of the date of the enactment of this Act, 
unless such provisions or amendments specifically provide for 
effectiveness or applicability upon another date certain.
    (b) Effect of Regulatory Authority.--Any authority in this Act or 
the amendments made by this Act to issue regulations, and any specific 
requirement to issue regulations by a date certain, may not be 
construed to affect the effectiveness or applicability of the 
provisions of this Act or the amendments made by this Act under such 
provisions and amendments and subsection (a) of this section.

   TITLE I--CONVERSION OF FINANCING AND REFINANCING FOR SECTION 202 
                   SUPPORTIVE HOUSING FOR THE ELDERLY

SEC. 101. CONVERSION OF FINANCING

    (a) In General.--Subject to the provisions of this section, at the 
request of the owner of a project assisted under section 202 of the 
Housing Act of 1959 (as in effect before the enactment of the Cranston-
Gonzalez National Affordable Housing Act) and section 8 of the United 
States Housing Act of 1937 (or any other rental housing assistance 
programs of the Department of Housing and Urban Development, including 
the rent supplement program under section 101 of the Housing and Urban 
Development Act of 1965 (12 U.S.C. 1701s)), the Secretary shall convert 
the financing of any such housing project to financing under section 
202 of the Housing Act of 1959, as amended by section 801 of the 
Cranston-Gonzalez National Affordable Housing Act (12 U.S.C. 1701q). In 
such a conversion, the Secretary shall, if requested by the owner, 
convert loans made under such section 202 (as in effect before 
enactment of the Cranston-Gonzalez National Affordable Housing Act), 
and shall convert section 8 contracts (or such other contracts for 
rental housing assistance) provided in connection with such loans, into 
capital advances and project rental assistance under section 202 (as 
amended by section 801 of the Cranston-Gonzalez National Affordable 
Housing Act), respectively, in accordance with this section.
    (b) Debt Forgiveness.--
            (1) In general.--Subject to paragraph (2), in converting 
        the financing of any housing project pursuant to this section, 
        the Secretary shall cancel any indebtedness to the Secretary 
        relating to any remaining principal and interest under any loan 
        for the project made under section 202 of the Housing Act of 
        1959 (as in effect before the enactment of the Cranston-
        Gonzalez National Affordable Housing Act).
            (2) Budget act compliance.--The authority of the Secretary 
        to cancel indebtedness under paragraph (1) shall be effective 
        only to the extent or in such amounts as are or have been 
        provided in advance in appropriation Acts.
    (c) Cancellation of Rental Assistance Contracts and Use of Project 
Funds.--
            (1) In general.--For each housing project for which debt is 
        canceled under subsection (b) of this section pursuant to a 
        request for conversion under subsection (a), the Secretary 
        shall cancel any contract for rental assistance for the project 
        under section 8 of the United States Housing Act of 1937 (or 
        any other contract for rental housing assistance under a 
        program of the Department of Housing and Urban Development, 
        including the rent supplement program under section 101 of the 
        Housing and Urban Development Act of 1965 (12 U.S.C. 1701s)).
            (2) Use of unexpended amounts.--Amounts previously 
        obligated for such contract that remain unexpended shall be 
        used as follows:
                    (A) Project rental assistance contract.--Remaining 
                amounts shall be used first, to the extent necessary, 
                to provide rental assistance for the project, under a 
                contract for project rental assistance under section 
                202(c)(2) of the Housing Act of 1959 (12 U.S.C. 
                1701q(c)(2)), that--
                            (i) has a duration that is not less than 
                        the remainder of the section 8 or other rental 
                        housing assistance contract canceled; and
                            (ii) provides assistance in an annual 
                        amount that is equal to the aggregate amount 
                        provided during the last 12-month period under 
                        the section 8 or other rental housing 
                        assistance contract for the project canceled 
                        (pursuant to paragraph (1) of this subsection), 
                        less the portion of such assistance that is 
                        attributable to debt service for the loan on 
                        the project canceled under subsection (b) of 
                        this section, subject to an annual adjustment 
                        of existing rents under the contract by an 
                        operating cost adjustment factor established by 
                        the Secretary (which shall not result in a 
                        negative adjustment).
                    (B) Credit against loan cancellation.--Amounts 
                remaining after compliance with subparagraph (A) shall, 
                on a fiscal year basis, be transferred to the account 
                covering the loan for the project canceled pursuant to 
                subsection (b) and shall be credited as offsetting 
                collection to such account, in an amount for each 
                fiscal year that is equal to the amount of indebtedness 
                canceled for such year pursuant such subsection.
                    (C) Retrofitting, renovation, and service 
                coordinators.--Any amounts remaining after compliance 
                with subparagraphs (A) and (B) may be used, to the 
                extent the Secretary considers appropriate, to retrofit 
                or renovate the project or provide a service 
                coordinator for residents of the project, to the same 
                extent that such activities are authorized to be 
                provided under section 802 of the Cranston-Gonzalez 
                National Affordable Housing Act to housing assisted 
                under such section.
        Any such unexpended amounts in excess of the amount used in 
        accordance with subparagraphs (A) through (C) shall be 
        recaptured by the Secretary.
            (3) Use of project funds.--In converting the financing of 
        any housing project pursuant to this section, the Secretary may 
        authorize the owner of the project to use any residual receipts 
        held for the project that exceed $500 per unit (or such other 
        amount as the Secretary may prescribe based on the needs of the 
        project) in accordance with paragraph (2) to improve the market 
        viability, affordability, or service to low-income elderly 
        residents of the project.
    (d) Third Party Processing.--The Secretary may enter into contracts 
with public or private entities as the Secretary considers appropriate 
to facilitate efficient processing of elderly housing project 
conversions under this section.
    (e) Tenant Protections.--Notwithstanding any provision of section 
202 of the Housing Act of 1959, as amended by section 801 of the 
Cranston-Gonzalez National Affordable Housing Act (12 U.S.C. 1701q)--
            (1) any tenant who, at the time of the conversion under 
        this section of the financing for a housing project, is 
        lawfully residing in a dwelling unit in the project, may not be 
        considered to be ineligible for continued residency in the 
        project after such date because such tenant is not a very low-
        income elderly person; and
            (2) very low-income persons with disabilities (as such term 
        is defined in section 811 of the Cranston-Gonzalez National 
        Affordable Housing Act) shall be eligible for occupancy in such 
        project, and units in the project shall be reserved for 
        occupancy by such persons in not less than the same ratio that 
        units in such project are occupied, upon the date of conversion 
        under this section, by handicapped families (as such term is 
        defined in section 202 of the Housing Act of 1959, as in effect 
        before the enactment of the Cranston-Gonzalez National 
        Affordable Housing Act).
    (f) Waiver Authority.--The Secretary may waive the applicability of 
any provision of law or regulation necessary to carry out this section.
    (g) Study of Debt Forgiveness.--
            (1) In general.--The Secretary shall conduct an analysis of 
        the net impact on the Federal budget deficit or surplus of 

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