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Committee on Financial Services

United States House of Representatives

Archive Press Releases

H.R. 202

"PRESERVING AFFORDABLE HOUSING FOR SENIOR CITIZENS
INTO THE 21ST CENTURY"

Section-By-Section

Section 1. Short title and table of contents.

Title cited as "Preserving Affordable Housing for Senior Citizens into the 21st Century Act".

Section 2. Regulations.

Provides that the HUD Secretary shall issue regulations necessary to carry out the provisions of the Act only after notice and opportunity for public comment.

Section 3. Effective Date.

Provisions of the Act are effective as of the date of enactment unless such provisions specifically provide for effectiveness or applicability upon another date. The authority to issue regulations to implement this Act shall not be construed to affect the effectiveness or applicability of the bill as of the effective date.

 

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

Section 101. Conversion of Financing.

Requires the HUD Secretary to convert the financing of pre-1990 supportive housing program for the elderly from direct loans and project-based Section 8 rental assistance to the post-1990 method provided to new developments, which is through non-repayable capital advances and project rental assistance contracts (PRACs). In converting the financing of projects pursuant to this section, the Secretary shall cancel any indebtedness to the Secretary on the project, but such authority shall be effective only to the extent provided in advance in appropriation Acts. Requires the Secretary to conduct a study of the net impact on the Federal budget deficit or surplus of making available, on a one-time basis, debt forgiveness relating to remaining principal and interest from Section 202 loans with a dollar-for-dollar reduction of rental assistance amounts under the Section 8 rental assistance program.

Section 102. Prepayment and refinancing.

Requires the Secretary to approve prepayment of any indebtedness to the Secretary relating to any remaining principal and interest on a project as part of a loan prepayment plan, provided the project sponsor continues to operate the project under terms as advantageous to existing and future tenants as required by the original loan agreement, until the maturity date of the original loan agreement. Requires that upon refinancing, the Secretary make available at least 50% of annual savings resulting from reduced Section 8 or other rental housing assistance in a manner that is advantageous to tenants, which may include increasing supportive services, rehabilitation, modernization, and retrofitting of structures, and other specified purposes.

 

TITLE II—AUTHORIZATION OF APPROPRIATIONS FOR SUPPORTIVE HOUSING FOR THE ELDERLY AND PERSONS WITH DISABILITIES

Section 201. Supportive housing for elderly persons.

Provides annual authorization of appropriation of $700 million for existing program of supportive housing for the elderly (section 202) for FY2001, FY2002, FY 2003 and FY2004.

Section 202. Supportive housing for persons with disabilities.

Provides annual authorization of appropriation of $225 million for existing program of supportive housing for the disabled (section 811) for FY2001, FY2002, FY 2003 and FY2004.

Section 203. Service coordinators and congregate services for elderly and disabled housing.

Provides annual authorization of appropriation of $50 million for grants for service coordinators for certain federally assisted multifamily housing projects, for FY2000, and authorizes such sums as may be necessary for FY 2001 and FY2002.

 

TITLE III — EXPANDING HOUSING OPPORTUNITIES FOR THE ELDERLY AND PERSONS WITH DISABILITIES

Subtitle A – Housing for the Elderly

Section 301. Matching grant program.

Adds provision to Section 202 of the Housing Act of 1959, Supportive Housing for the Elderly, for the provision of capital grants requiring the project sponsor to supplement funds with a matching amount. Applicants for assistance are required to provide supplemental matching funds, which shall be not less than 25% - 50% (as the Secretary of HUD may determine) of the amount provided. Not less than 50% of the supplemental funds in the matching amount shall be from non-Federal sources of funds.

Section 302. Eligibility of for-profit limited partnerships.

Provides that for-profit limited partnerships are eligible to participate in the program established under this Act.

Section 303. Mixed funding sources.

Allows private non-profit housing providers to use all sources of financing, including Federal funds, for amenities, relevant design features and construction of affordable housing for seniors.

Section 304. Authority to acquire structures.

Removes limitation allowing private non-profit housing providers to acquire RTC-held properties only for the purposes of providing affordable housing for seniors.

Section 305. Mixed-income occupancy.

Expands income eligibility for occupancy from 50% and below area media income (AMI) to 80% and below of AMI for existing affordable housing developments for seniors, provided that such development is designated as high vacancy

Section 306. Use of project reserves.

Provides that amounts for project reserves for a project assisted under this section may be used to reduce the number of dwelling units in the project for specified purposes.

Section 307. Commercial activities.

For Section 202 projects, provides that no provision of law may be construed as prohibiting or preventing the location and operation of commercial facilities in a project for the benefit of residents of that project and the community in which the project is located.

Section 308. Mixed financing pilot program.

Requires the Secretary to carry out a pilot program, for not more than five projects, to determine the effectiveness and feasibility for providing assistance under Section 202 for housing projects that are both for supportive housing for the elderly and for other types of housing, which may include market rate housing.

Section 309. Grants for conversion of elderly housing to assisted living facilities.

Provides discretionary authority to designate public or private entities to carry out finance conversion for elderly housing developments. Provides waiver authority to carry out finance conversion for elderly housing developments. Authorizes such sums as may be necessary for each of fiscal years 2000 through 2004

Section 310. Grants for conversion of public housing projects to assisted living facilities.

Provides the Secretary with discretion to make grants to public housing agencies to convert dwelling units in projects already designated for occupancy by elderly persons, to assisted living facilities for elderly persons. Authorizes such sums as may be necessary for each of fiscal years 2000 through 2004.

Section 311. Use of section 8 assistance for assisted living facilities.

Provides that a recipient of Section 8 housing assistance may use such assistance in an assisted living facility.

Section 312. Annual HUD inventory have assisted housing designated for elderly persons.

Requires that the HUD Secretary establish and maintain, to be updated annually, an inventory of HUD and federally-assisted housing that is designated for occupancy, in whole or in part, for occupancy by elderly or disabled families or both.

 

Subtitle B – Housing for Persons with Disabilities

Section 321. Matching grant program.

Adds provision to Section 811 of the Cranston-Gonzalez National Affordable Housing Act, Supportive Housing for Persons with Disabilities, for the provision of capital grants requiring the project sponsor to supplement funds with a matching amount. Applicants for assistance are required to provide supplemental matching funds, which shall be not less than 25% - 50% (as the Secretary may determine) of the amount provided. Not less than 50% of the supplemental funds in the matching amount shall be from non-Federal sources of funds.

Section 322. Eligibility of for-profit limited partnerships.

Provides that for-profit limited partnerships are eligible to participate in the program established under this Act.

Section 323. Mixed funding sources.

Allows private non-profit housing providers to use all sources of financing, including Federal funds, for amenities, relevant design features and construction of affordable housing for seniors.

Section 324. Tenant-based assistance for persons with disabilities.

Provides that tenant-based rental assistance may be provided by a public housing agency or through a private nonprofit organization.

Section 325. Project size.

Provides that of any amounts made available in any fiscal year for capital advances or project rental assistance under this section, not more than 25% may be used for supportive housing which contains more than 24 separate dwelling units. Requires the Secretary to study and submit a report to Congress regarding the extent to which the authority of the Secretary under Section 811 (k)(4) of the Cranston Gonzalez National Affordable Housing Act to provide assistance to supportive housing projects for persons with disabilities having more than 24 units.

Section 326. Use of project reserves.

Provides that amounts for project reserves for a project assisted under this section may be used to reduce the number of dwelling units in the project for specified purposes.

Section 327. Commercial Activities

For Section 811 projects, provides that no provision of law may be construed as prohibiting or preventing the location and operation of commercial facilities in a project for the benefit of residents of that project and the community in which the project is located.

 

Subtitle C -- Other Provisions

Section 341. Service coordinators.

Provides that service coordinators funded with grants under this section for a specific project may also provide services to low-income elderly or disabled families in the vicinity of such project.

Section 342. Commission on Affordable Housing and Health Care Facility Needs in the 21st Century.

Establishes a commission to be known as the Commission on Affordable Housing and Health Care Facility Needs in the 21st Century. The Commission shall provide an estimate of the future needs of seniors for affordable housing and assisted living and health care facilities identify methods of encouraging private sector participation and investment in affordable housing, and other matters relating to housing the elderly.

 

TITLE IV – RENEWAL OF EXPIRING RENTAL ASSISTANCE
CONTRACTS AND PROTECTION OF RESIDENTS

Section 401. Findings and purposes.

Sets forth Congressional findings, including that affordable housing is critical to the well-being of vulnerable families, especially seniors and persons with disabilities; that Federal rental assistance contracts are expiring in great numbers and a significant number of owners are choosing not to renew contracts with the Federal government; that as a result rent levels for vulnerable families may rise dramatically, possibly forcing these families to move from their homes; and that the Federal government should ensure those least able to provide for themselves receive the assistance of the Federal government.

The purpose of the Act is to protect vulnerable residents, particularly seniors and persons with disabilities, by ensuring they are not forced to move from their homes and by encouraging private owners to continue serving low-income families.

Section 402. Renewal of expiring contracts and enhanced vouchers for project residents.

Unless otherwise provided, for expiring Section 8 properties that have current rents below comparable market rents for the area, the Secretary of HUD is directed upon renewal of such Section 8 contracts to set rents at comparable market rent levels. For those expiring Section 8 contracts that have rent levels above comparable market rents but are not subject to restructuring, the Secretary upon renewal shall set these rents at comparable market rents.

Directs the Secretary of Housing and Urban Development to provide "enhanced vouchers" to residents residing in a property upon the date of the expiration of a federally-assisted housing contract that is not renewed. Enhanced vouchers allow increased assistance for residents in cases where rent levels increase as a result of the expiration of the contract, therefore ensuring that the resident may continue to reside in the unit. Authorizes such sums as may be necessary for enhanced voucher assistance for fiscal years 2000 through fiscal year 2004.

Provides that no state may limit allowable project distributions to owners that renew a project under provisions of this Act.

Section 403. Section 236 assistance.

Adds as an eligible purpose of certain interest reduction payment grants available under Section 236 of the National Housing Act the refinancing of mortgages on these properties, resulting in cost savings to the federal government.

Allows an owner of a project financed under a State program pursuant to Section 236 of the National Housing Act to retain any excess rental income from the project for use for the benefit of the project, upon terms and conditions established by the Secretary.

Section 404. Matching grant program for affordable housing preservation.

Provides the Secretary of HUD with authority to make grants to State and qualified units of general local government for low-income housing preservation purposes, to be matched on a one-to-one basis from sources provided by the grant recipients. Amounts may be used for acquisition, preservation incentives, operating costs, and capital expenditures for a housing project that is: at risk of loss; primarily occupied by elderly or disabled families; contains one or more dwelling units occupied by large families; is located in a rural area without an adequate supply of housing; or where rental assistance vouchers would, under certain market conditions, be difficult for residents to use. In making grants under this subtitle during fiscal years 2001 and thereafter, the Secretary shall give priority to eligible States and qualified units of general local government that have not previously received a grant under this subtitle, and to grant for eligible housing projects that ensure transfer of such projects to nonprofit organizations.

Section 405. Rehabilitation of assisted housing.

Amends Section 236 of the National Housing Act to allow the use of recaptured interest rate reduction payments from a project for rehabilitation of that project.

Section 406. Technical assistance.

Amends the Multifamily Assisted Housing Reform and Affordability Act of 1997 to allow for technical assistance for preservation of low-income housing.

Section 407. Termination of section 8 contract and duration of renewal contract.

Provides that section 8 contracts may be renewed for up to one year or for any number of years, subject to appropriations (as opposed to mandatory renewals of one year).

Amends Section 201 of the Housing and Community Development Amendments of 1978 by allowing the use of enhanced vouchers for projects preserved as affordable housing under section 229 of the Low-Income Housing Preservation and Resident Homeownership Act of 1990.

Section 409. Enhanced disposition authority.

Amends section 204 of the FY 1997 VA/HUD Appropriations Act to extend current grant and loan authority under Section 204 through FY 2000, expressly provide that upfront grants or loans may support reconstruction as well as rehabilitation and demolition, and provide that vacant as well as occupied projects shall be eligible for such grants or loans.

 

TITLE V – MORTGAGE INSURANCE FOR HEALTH CARE FACILITIES

Section 501. Purchase and rehabilitation of existing hospitals, nursing homes, and other facilities.

Allows for purchase as well as refinancing of hospitals and would expand eligibility under the program to health care facilities. Provides that the cost of modest rehabilitation may be included in refinancing.

Section 502. New health care facilities.

Adds a more flexible definition of "healthcare facility" to description of eligible projects. Eliminates licensing requirements for assisted living facilities in states without licensing procedures. Modifies eligibility test used as an alternative to the Certificate of Need requirement under the statute so that a sponsor applicant may commission an independent study in defined circumstances.

Section 503. Hospital and hospital-based health care facilities.

Changes definition of eligible "hospital" to eliminate test that denies eligibility where more than 50% of patient days are non-acute in nature. The 50% rule, especially in a "continuum of care" environment, creates a financing void for hospitals providing significant non-acute care services. Modifies eligibility test used as an alternative to the Certificate of Need requirement under the statute so that a sponsor applicant may commission an independent study in defined circumstances.

Section 504. Insurance for mortgages to refinance existing home equity conversion mortgages.

Allows seniors to maximize the equity in their homes by streamlining the process of refinancing an existing Federal-insured reverse mortgage.



 

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