69–006 

110TH CONGRESS REPORT " ! HOUSE OF REPRESENTATIVES 2d Session 110–845 

FRANK MELVILLE SUPPORTIVE HOUSING INVESTMENT 

ACT OF 2008 

SEPTEMBER 15, 2008.—Committed to the Committee of the Whole House on the 

State of the Union and ordered to be printed 

Mr. FRANK of Massachusetts, from the Committee on Financial 

Services, submitted the following 

R E P O R T 

[To accompany H.R. 5772] 

[Including cost estimate of the Congressional Budget Office] 

The Committee on Financial Services, to whom was referred the 

bill (H.R. 5772) to amend section 811 of the Cranston-Gonzalez National Affordable Housing Act to improve the program under such 

section for supportive housing for persons with disabilities, having 

considered the same, report favorably thereon with an amendment 

and recommend that the bill as amended do pass. 

CONTENTS 

Page 

Amendment .............................................................................................................. 2 

Purpose and Summary ............................................................................................ 9 

Background and Need for Legislation .................................................................... 9 

Hearings ................................................................................................................... 10 

Committee Consideration ........................................................................................ 11 

Committee Votes ...................................................................................................... 11 

Committee Oversight Findings ............................................................................... 11 

Performance Goals and Objectives ......................................................................... 11 

New Budget Authority, Entitlement Authority, and Tax Expenditures ............. 11 

Committee Cost Estimate ....................................................................................... 12 

Congressional Budget Office Estimate ................................................................... 12 

Federal Mandates Statement ................................................................................. 14 

Advisory Committee Statement .............................................................................. 14 

Constitutional Authority Statement ...................................................................... 14 

Applicability to Legislative Branch ........................................................................ 15 

Earmark Identification ............................................................................................ 15 

Section-by-Section Analysis of the Legislation ...................................................... 15 

Changes in Existing Law Made by the Bill, as Reported ..................................... 19 


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AMENDMENT

The amendment is as follows: 

Strike all after the enacting clause and insert the following: 

SECTION 1. SHORT TITLE; REFERENCES. 

(a) SHORT TITLE.—This Act may be cited as the ‘‘Frank Melville Supportive Housing Investment Act of 2008’’. 

(b) REFERENCES.—Except as otherwise expressly provided, wherever in this Act an 

amendment or repeal is expressed in terms of an amendment to, or repeal of, section 

811 or any other provision of section 811, the reference shall be considered to be 

made to section 811 of the Cranston-Gonzalez National Affordable Housing Act (42 

U.S.C. 8013). 

SEC. 2. TENANT-BASED RENTAL ASSISTANCE THROUGH CERTIFICATE FUND. 

(a) TERMINATION OF MAINSTREAM TENANT-BASED RENTAL ASSISTANCE PROGRAM.— 

Section 811 is amended— 

(1) in subsection (b)— 

(A) by striking the first subsection designation and all that follows 

through the end of subparagraph (B) of paragraph (2) and inserting the following: 

‘‘(b) AUTHORITY TO PROVIDE ASSISTANCE.—The Secretary is authorized to provide 

assistance to private nonprofit organizations to expand the supply of supportive 

housing for persons with disabilities, which shall be provided as— 

‘‘(1) capital advances in accordance with subsection (d)(1), and 

‘‘(2) contracts for project rental assistance in accordance with subsection 

(d)(2).’’; and 

(B) by striking ‘‘assistance under this paragraph’’ and inserting ‘‘Assistance under this subsection’’; 

(2) in subsection (d), by striking paragraph (4); and 

(3) in subsection (l), by striking paragraph (1). 

(b) RENEWAL THROUGH SECTION 8.—Section 811 is amended by adding at the end 

the following new subsection: 

‘‘(p) AUTHORIZATION OF APPROPRIATIONS FOR SECTION 8 ASSISTANCE.— 

‘‘(1) IN GENERAL.—There is authorized to be appropriated for tenant-based 

rental assistance under section 8(o) of the United States Housing Act of 1937 

(42 U.S.C. 1437f(o)) for persons with disabilities in fiscal year 2009 the amount 

necessary to provide a number of incremental vouchers under such section that 

is equal to the number of vouchers provided in fiscal year 2008 under the tenant-based rental assistance program under subsection (d)(4) of this section (as 

in effect before the date of the enactment of the Frank Melville Supportive 

Housing Investment Act of 2008). 

‘‘(2) REQUIREMENTS UPON TURNOVER.—The Secretary shall develop and issue, 

to public housing agencies that receive voucher assistance made available under 

this subsection and to public housing agencies that received voucher assistance 

under section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)) 

for non-elderly disabled families pursuant to appropriation Acts for fiscal years 

1997 through 2002 or any other subsequent appropriations for incremental 

vouchers for non-elderly disabled families, guidance to ensure that, to the maximum extent possible, such vouchers continue to be provided upon turnover to 

qualified persons with disabilities or to qualified non-elderly disabled families, 

respectively.’’. 

SEC. 3. MODERNIZED CAPITAL ADVANCE PROGRAM. 

(a) PROJECT RENTAL ASSISTANCE CONTRACTS.—Section 811 is amended— 

(1) in subsection (d)(2)— 

(A) by inserting ‘‘(A) INITIAL PROJECT RENTAL ASSISTANCE CONTRACT.—’’ 

after ‘‘PROJECT RENTAL ASSISTANCE.—’’ 

(B) in the first sentence, by inserting after ‘‘shall’’ the following: ‘‘comply 

with subsection (e)(2) and shall’’; 

(C) by striking ‘‘annual contract amount’’ each place such term appears 

and inserting ‘‘amount provided under the contract for each year covered 

by the contract’’; and 

(D) 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, subject to the availability of amounts made available in appropriation Acts, the Secretary shall adjust the annual contract amount to provide for reasonable project costs, and any increases, including adequate reVerDate Aug 31 2005 15:15 Sep 16, 2008 Jkt 060006 PO 00000 Frm 00002 Fmt 6659 Sfmt 6621 E:\HR\OC\HR845.XXX HR845

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serves 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.’’. 

(2) in subsection (e)(2)— 

(A) in the first sentence, by inserting before the period at the end the following: ‘‘, except that, in the case of the sponsor of a project assisted with 

any low-income housing tax credit pursuant to section 42 of the Internal 

Revenue Code of 1986 or with any tax-exempt housing bonds, the contract 

shall have an initial term of not be less than 360 months and shall provide 

funding for a term of 60 months’’; and 

(B) by striking ‘‘extend any expiring contract’’ and insert ‘‘upon expiration 

of a contract (or any renewed contract), renew such contract’’. 

(b) PROGRAM REQUIREMENTS.—Section 811 is amended— 

(1) in subsection (e)— 

(A) by striking the subsection heading and inserting the following: ‘‘PROGRAM REQUIREMENTS’’; 

(B) by striking paragraph (1) and inserting the following new paragraph: 

‘‘(1) USE RESTRICTIONS.— 

‘‘(A) TERM.—Any project for which a capital advance is provided under 

subsection (d)(1) shall be operated for not less than 40 years as supportive 

housing for persons with disabilities, in accordance with the application for 

the project approved by the Secretary and shall, during such period, be 

made available for occupancy only by very low-income persons with disabilities. 

‘‘(B) CONVERSION.—If the owner of a project requests the use of the 

project for the direct benefit of very low-income persons with disabilities 

and, pursuant to such request the Secretary determines that a project is no 

longer needed for use as supportive housing for persons with disabilities, 

the Secretary may approve the request and authorize the owner to convert 

the project to such use.’’; and 

(C) by adding at the end the following new paragraphs: 

‘‘(3) LIMITATION ON USE OF FUNDS.—No assistance received under this section 

(or any State or local government funds used to supplement such assistance) 

may be used to replace other State or local funds previously used, or designated 

for use, to assist persons with disabilities. 

‘‘(4) MULTIFAMILY PROJECTS.— 

‘‘(A) LIMITATION.—Except as provided in subparagraph (B), of the total 

number of dwelling units in any multifamily housing project (including any 

condominium or cooperative housing project) containing any unit for which 

assistance is provided from a capital grant under subsection (d)(1) made 

after the date of the enactment of the Frank Melville Supportive Housing 

Investment Act of 2008, the aggregate number that are used for persons 

with disabilities, including supportive housing for persons with disabilities, 

or to which any occupancy preference for persons with disabilities applies, 

may not exceed 25 percent of such total. 

‘‘(B) EXCEPTION.—Subparagraph (A) shall not apply in the case of any 

project that is a group home or independent living facility.’’; and 

(2) in subsection (l), by striking paragraph (4). 

(c) DELEGATED PROCESSING.—Subsection (g) of section 811 (42 U.S.C. 8013(g)) is 

amended— 

(1) by striking ‘‘SELECTION CRITERIA.—’’ and inserting ‘‘SELECTION CRITERIA

AND PROCESSING.—(1) SELECTION CRITERIA.—’’; 

(2) by redesignating paragraphs (1), (2), (3), (4), (5), (6), and (7) as subparagraphs (A), (B), (C), (D), (E), (G), and (H), respectively; 

(3) by adding at the end the following new paragraph: 

‘‘(2) DELEGATED PROCESSING.— 

‘‘(A) In issuing a capital advance under subsection (d)(1) for any multifamily 

project (but not including any project that is a group home or independent living facility) for which financing for the purposes described in the last sentence 

of subsection (b) is provided by a combination of the capital advance and sources 

other than this section, within 30 days of award of the capital advance, the Secretary shall delegate review and processing of such projects to a State or local 

housing agency that— 

‘‘(i) is in geographic proximity to the property; 


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‘‘(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) The Secretary shall retain the authority to process capital advances in 

cases in which no State or local housing agency has applied to provide delegated 

processing pursuant to this paragraph or no such agency has entered into an 

agreement with the Secretary to serve as a delegated processing agency. 

‘‘(C) 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. The Secretary shall develop 

a schedule for reasonable fees under this subparagraph to be paid to delegated 

processing agencies, which shall take into consideration any other fees to be 

paid to the agency for other funding provided to the project by the agency, including bonds, tax credits, and other gap funding. 

‘‘(D) Under such delegated system, the Secretary shall retain the authority to 

approve rents and development costs and to execute a capital advance within 

60 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.’’. 

(d) LEVERAGING OTHER RESOURCES.—Paragraph (1) of section 811(g) (as so designated by subsection (c)(1) of this section) is amended by inserting after subparagraph (E) (as so redesignated by subsection (c)(2) of this section) the following new 

subparagraph: 

‘‘(F) the extent to which the per-unit cost of units to be assisted under 

this section will be supplemented with resources from other public and private sources;’’. 

(e) TENANT PROTECTIONS AND ELIGIBILITY FOR OCCUPANCY.—Section 811 is 

amended by striking subsection (i) and inserting the following new subsection: 

‘‘(i) ADMISSION AND OCCUPANCY.— 

‘‘(1) TENANT SELECTION.— 

‘‘(A) PROCEDURES.—An owner shall adopt written tenant selection procedures that are satisfactory to the Secretary as (i) consistent with the purpose of improving housing opportunities for very low-income persons with 

disabilities; and (ii) reasonably related to program eligibility and an applicant’s ability to perform the obligations of the lease. Owners shall promptly 

notify in writing any rejected applicant of the grounds for any rejection. 

‘‘(B) REQUIREMENT FOR OCCUPANCY.—Occupancy in dwelling units provided assistance under this section shall be available only to persons with 

disabilities and households that include at least one person with a disability. 

‘‘(C) AVAILABILITY.—Except only as provided in subparagraph (D), occupancy in dwelling units in housing provided with assistance under this section shall be available to all persons with disabilities eligible for such occupancy without regard to the particular disability involved. 

‘‘(D) LIMITATION ON OCCUPANCY.—Notwithstanding any other provision of 

law, the owner of housing developed under this section may, with the approval of the Secretary, limit occupancy within the housing to persons with 

disabilities who can benefit from the supportive services offered in connection with the housing. 

‘‘(2) TENANT PROTECTIONS.— 

‘‘(A) LEASE.—The lease between a tenant and an owner of housing assisted under this section shall be for not less than one year, and shall contain such terms and conditions as the Secretary shall determine to be appropriate. 

‘‘(B) TERMINATION OF TENANCY.—An owner may not terminate the tenancy or refuse to renew the lease of a tenant of a rental dwelling unit assisted under this section except— 

‘‘(i) for serious or repeated violation of the terms and conditions of the 

lease, for violation of applicable Federal, State, or local law, or for other 

good cause; and 

‘‘(ii) by providing the tenant, not less than 30 days before such termination or refusal to renew, with written notice specifying the grounds 

for such action. 

‘‘(C) VOLUNTARY PARTICIPATION IN SERVICES.—A supportive service plan 

for housing assisted under this section shall permit each resident to take 


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responsibility for choosing and acquiring their own services, to receive any 

supportive services made available directly or indirectly by the owner of 

such housing, or to not receive any supportive services.’’. 

(f) DEVELOPMENT COST LIMITATIONS.—Subsection (h) of section 811 is amended— 

(1) in paragraph (1)— 

(A) by striking the paragraph heading and inserting ‘‘GROUP HOMES’’; 

(B) in the first sentence, by striking ‘‘various types and sizes’’ and inserting ‘‘group homes’’; 

(C) by striking subparagraph (E); and 

(D) by redesignating subparagraphs (F) and (G) as subparagraphs (E) and 

(F), respectively; 

(2) in paragraph (3), by inserting ‘‘established pursuant to paragraph (1)’’ 

after ‘‘cost limitation’’; and 

(3) by adding at the end the following new paragraph: 

‘‘(6) APPLICABILITY OF HOME PROGRAM COST LIMITATIONS.— 

‘‘(A) IN GENERAL.—The provisions of section 212(e) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12742(e)) and the cost 

limits established by the Secretary pursuant to such section with respect 

to the amount of funds under subtitle A of title II of such Act that may 

be invested on a per unit basis, shall apply to supportive housing assisted 

with a capital advance under subsection (d)(1) and the amount of funds 

under such subsection that may be invested on a per unit basis. 

‘‘(B) WAIVERS.—The Secretary shall provide for waiver of the cost limits 

applicable pursuant to subparagraph (A)— 

‘‘(i) in the cases in which the cost limits established pursuant to section 212(e) of the Cranston-Gonzalez National Affordable Housing Act 

may be waived; and 

‘‘(ii) to provide for— 

‘‘(I) the cost of special design features to make the housing accessible to persons with disabilities; 

‘‘(II) the cost of special design features necessary to make individual dwelling units meet the special needs of persons with disabilities; and 

‘‘(III) the cost of providing the housing in a location that is accessible to public transportation and community organizations that 

provide supportive services to persons with disabilities.’’. 

(g) REPEAL OF AUTHORITY TO WAIVE SIZE LIMITATIONS.—Paragraph (1) of section 

811(k) is amended— 

(1) in paragraph (1), by striking the second sentence; and 

(2) in paragraph (4), by striking ‘‘(or such higher number of persons’’ and all 

that follows through ‘‘subsection (h)(6))’’. 

(h) MINIMUM ALLOCATION FOR MULTIFAMILY PROJECTS.—Subsection (l) of section 

811, as amended by the preceding provisions of this Act, is further amended by inserting before paragraph (2) the following new paragraph: 

‘‘(1) MINIMUM ALLOCATION FOR MULTIFAMILY PROJECTS.—The Secretary shall 

establish a minimum percentage of the amount made available for each fiscal 

year for capital advances under subsection (d)(1) that shall be used for multifamily projects subject to subsection (e)(4).’’. 

SEC. 4. PROJECT RENTAL ASSISTANCE COMPETITIVE DEMONSTRATION PROGRAM. 

Section 811, as amended by the preceding provisions of this Act, is further amended— 

(1) by redesignating subsections (k) through (n) as subsections (l) through (o), 

respectively; and 

(2) by inserting after subsection (j) the following new subsection: 

‘‘(k) PROJECT RENTAL ASSISTANCE-ONLY COMPETITIVE DEMONSTRATION PROGRAM.— 

‘‘(1) AUTHORITY.—The Secretary shall carry out a demonstration program 

under this subsection to expand the supply of supportive housing for non-elderly 

adults with disabilities, under which the Secretary shall make funds available 

for project rental assistance pursuant to paragraph (2) for eligible projects 

under paragraph (3). The Secretary shall provide for State housing finance 

agencies and other appropriate entities to apply to the Secretary for such 

project rental assistance funds, which shall be made available by such agencies 

and entities for dwelling units in eligible projects based upon criteria established by the Secretary for the demonstration program under this subsection. 

The Secretary may not require any State housing finance agency or other entity 

applying for project rental assistance funds under the demonstration program 

to identify in such application the eligible projects for which such funds will be 


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used, and shall allow such agencies and applicants to subsequently identify 

such eligible projects pursuant to the making of commitments described in paragraph (3)(B). 

‘‘(2) PROJECT RENTAL ASSISTANCE.— 

‘‘(A) CONTRACT TERMS.—Project rental assistance under the demonstration program under this subsection shall be provided— 

‘‘(i) in accordance with subsection (d)(2); 

‘‘(ii) under a contract having an initial term of not less than 180 

months that provides funding for a term 60 months, which funding 

shall be renewed upon expiration, subject to the availability of sufficient amounts in appropriation Acts. 

‘‘(B) LIMITATION ON UNITS ASSISTED.—Of the total number of dwelling 

units in any multifamily housing project containing any unit for which 

project rental assistance under the demonstration program under this subsection is provided, the aggregate number that are provided such project 

rental assistance, that are used for supportive housing for persons with disabilities, or to which any occupancy preference for persons with disabilities 

applies, may not exceed 25 percent of such total. 

‘‘(C) PROHIBITION OF CAPITAL ADVANCES.—The Secretary may not provide 

a capital advance under subsection (d)(1) for any project for which assistance is provided under the demonstration program. 

‘‘(D) ELIGIBLE POPULATION.—Project rental assistance under the demonstration program under this subsection may be provided only for dwelling 

units for extremely low-income persons with disabilities and extremely lowincome households that include at least one person with a disability. 

‘‘(3) ELIGIBLE PROJECTS.—An eligible project under this paragraph is a new 

or existing multifamily housing project for which— 

‘‘(A) the development costs are paid with resources from other public or 

private sources; and 

‘‘(B) a commitment has been made— 

‘‘(i) by the applicable State agency responsible for allocation of lowincome housing tax credits under section 42 of the Internal Revenue 

Code of 1986, for an allocation of such credits; 

‘‘(ii) by the applicable participating jurisdiction that receives assistance under the HOME Investment Partnership Act, for assistance from 

such jurisdiction; or 

‘‘(iii) by any Federal agency or any State or local government, for 

funding for the project from funds from any other sources. 

‘‘(4) STATE AGENCY INVOLVEMENT.—Assistance under the demonstration may 

be provided only for projects for which the applicable State agency responsible 

for health and human services programs, and the applicable State agency designated to administer or supervise the administration of the State plan for medical assistance under title XIX of the Social Security Act, have entered into such 

agreements as the Secretary considers appropriate— 

‘‘(A) to identify the target populations to be served by the project; 

‘‘(B) to set forth methods for outreach and referral; and 

‘‘(C) to make available appropriate services for tenants of the project. 

‘‘(5) USE REQUIREMENTS.—In the case of any project for which project rental 

assistance is provided under the demonstration program under this subsection, 

the dwelling units assisted pursuant to paragraph (2) shall be operated for not 

less than 30 years as supportive housing for persons with disabilities, in accordance with the application for the project approved by the Secretary, and such 

dwelling units shall, during such period, be made available for occupancy only 

by persons and households described in paragraph (2)(D). 

‘‘(6) REPORT.—Upon the expiration of the 5-year period beginning on the date 

of the enactment of the Frank Melville Supportive Housing Investment Act of 

2008, the Secretary shall submit to the Congress a report describing the demonstration program under this subsection, analyzing the effectiveness of the 

program, including the effectiveness of the program compared to the program 

for capital advances in accordance with subsection (d)(1) (as in effect pursuant 

to the amendments made by such Act), and making recommendations regarding 

future models for assistance under this section based upon the experiences 

under the program.’’. 

SEC. 5. TECHNICAL CORRECTIONS. 

Section 811 is amended— 

(1) in subsection (a)— 

(A) in paragraph (1), by striking ‘‘and’’ at the end; 

(B) in paragraph (2)— 


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(i) by striking ‘‘provides’’ and inserting ‘‘makes available’’; and 

(ii) by striking the period at the end and inserting ‘‘; and’’ ; and 

(C) by adding at the end the following new paragraph: 

‘‘(3) promotes and facilitates community integration for people with significant 

and long-term disabilities.’’; 

(2) in subsection (c)— 

(A) in paragraph (1), by striking ‘‘special’’ and inserting ‘‘housing and 

community-based services’’; and 

(B) in paragraph (2)— 

(i) by striking subparagraph (A) and inserting the following: 

‘‘(A) make available voluntary supportive services that address the individual needs of persons with disabilities occupying such housing;’’; and 

(ii) in subparagraph (B), by striking the comma and inserting a semicolon; 

(3) in subsection (d)(1), by striking ‘‘provided under’’ and all that follows 

through ‘‘shall bear’’ and inserting ‘‘provided pursuant to subsection (b)(1) shall 

bear’’; 

(4) in subsection (f)— 

(A) in paragraph (3)— 

(i) in subparagraph (B), by striking ‘‘receive’’ and inserting ‘‘be offered’’; 

(ii) by striking subparagraph (C) and inserting the following: 

‘‘(C) evidence of the applicant’s experience in— 

‘‘(i) providing such supportive services; or 

‘‘(ii) creating and managing structured partnerships with service providers for the delivery of appropriate community-based services;’’; 

(iii) in subparagraph (D), by striking ‘‘such persons’’ and all that follows through ‘‘provision of such services’’ and inserting ‘‘tenants’’; and 

(iv) in subparagraph (E), by inserting ‘‘other Federal, and’’ before 

‘‘State’’; and 

(B) in paragraph (4), by striking ‘‘special’’ and inserting ‘‘housing and 

community-based services’’; 

(5) in subsection (g), in paragraph (1) (as so redesignated by section 3(c)(1) 

of this Act)— 

(A) in subparagraph (D) (as so redesignated by section 3(c)(2) of this Act), 

by striking ‘‘the necessary supportive services will be provided’’ and inserting ‘‘appropriate supportive services will be made available’’; and 

(B) by striking subparagraph (E) (as so redesignated by section 3(c)(2) of 

this Act) and inserting the following: 

‘‘(E) the extent to which the location and design of the proposed project will 

facilitate the provision of community-based supportive services and address 

other basic needs of persons with disabilities, including access to appropriate 

and accessible transportation, access to community services agencies, public facilities, and shopping;’’; 

(6) in subsection (j)— 

(A) by striking paragraph (4); and 

(B) by redesignating paragraphs (5), (6), and (7) as paragraphs (4), (5), 

and (6), respectively; 

(7) in subsection (l) (as so redesignated by section 4(1) of this Act)— 

(A) in paragraph (1), by inserting before the period at the end of the first 

sentence the following: ‘‘, which provides a separate bedroom for each tenant of the residence’’; 

(B) by striking paragraph (2) and inserting the following: 

‘‘(2)(A) The term ‘person with disabilities’ means a person who is 18 years of 

age or older and less than 62 years of age, who— 

‘‘(i) has a disability as defined in section 223 of the Social Security Act, 

‘‘(ii) is determined, pursuant to regulations issued by the Secretary, to 

have a physical, mental, or emotional impairment which— 

‘‘(I) is expected to be of long-continued and indefinite duration; 

‘‘(II) substantially impedes his or her ability to live independently; 

and 

‘‘(III) is of such a nature that such ability could be improved by more 

suitable housing conditions; or 

‘‘(iii) has a developmental disability as defined in section 102 of the Developmental Disabilities Assistance and Bill of Rights Act of 2000. 

‘‘(B) Such term shall not exclude persons who have the disease of acquired 

immunodeficiency syndrome or any conditions arising from the etiologic agent 

for acquired immunodeficiency syndrome. Notwithstanding any other provision 

of law, no individual shall be considered a person with disabilities, for purposes 


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of eligibility for low-income housing under this title, solely on the basis of any 

drug or alcohol dependence. The Secretary shall consult with other appropriate 

Federal agencies to implement the preceding sentence. 

‘‘(C) The Secretary shall prescribe such regulations as may be necessary to 

prevent abuses in determining, under the definitions contained in this paragraph, the eligibility of families and persons for admission to and occupancy of 

housing assisted under this section. Notwithstanding the preceding provisions 

of this paragraph, the term ‘person with disabilities’ includes two or more persons with disabilities living together, one or more such persons living with another person who is determined (under regulations prescribed by the Secretary) 

to be important to their care or well-being, and the surviving member or members of any household described in subparagraph (A) who were living, in a unit 

assisted under this section, with the deceased member of the household at the 

time of his or her death.’’; 

(C) by striking paragraph (3) and inserting the following new paragraph: 

‘‘(3) The term ‘supportive housing for persons with disabilities’ means dwelling units that— 

‘‘(A) are designed to meet the permanent housing needs of very low-income persons with disabilities; and 

‘‘(B) are located in housing that make available supportive services that 

address the individual health, mental health, or other needs of such persons.’’; 

(D) in paragraph (5), by striking ‘‘a project for’’; and 

(E) in paragraph (6)— 

(i) by inserting after and below subparagraph (D) the matter to be 

inserted by the amendment made by section 841 of the American 

Homeownership and Economic Opportunity Act of 2000 (Public Law 

106–569; 114 Stat. 3022); and 

(ii) in the matter inserted by the amendment made by subparagraph 

(A) of this paragraph, by striking ‘‘wholly owned and’’; and 

(8) in subsection (m) (as so redesignated by section 4(1) of this Act)— 

(A) in paragraph (2), by striking ‘‘subsection (c)(1)’’ and inserting ‘‘subsection (d)(1)’’; and 

(B) in paragraph (3), by striking ‘‘subsection (c)(2)’’ and inserting ‘‘subsection (d)(2)’’. 

SEC. 6. AUTHORIZATION OF APPROPRIATIONS. 

Subsection (n) of section 811 (as so redesignated by section 4(1) of this Act) is 

amended to read as follows: 

‘‘(n) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to be appropriated 

for each of fiscal years 2008 through 2012 the following amounts: 

‘‘(1) CAPITAL ADVANCE/PRAC PROGRAM.—For providing assistance pursuant to 

subsection (b), such sums as may be necessary. 

‘‘(2) DEMONSTRATION PROGRAM.—For carrying out the demonstration program 

under subsection (k), such sums as may be necessary to provide 2,500 incremental dwelling units under such program in each of fiscal years 2008 and 2009 

and 5,000 incremental dwelling units under such program in each of fiscal years 

2010, 2011, and 2012.’’. 

SEC. 7. NEW REGULATIONS AND PROGRAM GUIDANCE. 

Not later than the expiration of the 180-day period beginning on the date of the 

enactment of this Act, the Secretary of Housing and Urban Development shall issue 

new regulations and guidance for the program under section 811 of the CranstonGonzalez National Affordable Housing Act for supportive housing for persons with 

disabilities to carry out such program in accordance with the amendments made by 

this Act. 

SEC. 8. GAO STUDY. 

The Comptroller General of the United States shall conduct a study of the supportive housing for persons with disabilities program under section 811 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013) to determine the 

adequacy and effectiveness of such program in assisting households of persons with 

disabilities. Such study shall determine— 

(1) the total number of households assisted under such program; 

(2) the extent to which households assisted under other programs of the Department of Housing and Urban Development that provide rental assistance or 

rental housing would be eligible to receive assistance under such section 811 

program; and 

(3) the extent to which households described in paragraph (2) who are eligible 

for, but not receiving, assistance under such section 811 program are receiving 


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supportive services from, or assisted by, the Department of Housing and Urban 

Development other than through the section 811 program (including under the 

Resident Opportunity and Self-Sufficiency program) or from other sources. 

Upon the completion of the study required under this section, the Comptroller General shall submit a report to the Congress setting forth the findings and conclusions 

of the study. 

PURPOSE AND SUMMARY

H.R. 5772, the ‘‘Frank Melville Supportive Housing Investment 

Act of 2008’’ amends section 811 of the Cranston-Gonzalez National 

Affordable Housing Act (P.L. 101–625), which established the 

Housing for Persons with Disabilities program. The Section 811 

program is the only Department of Housing and Urban Development (HUD) permanent supportive housing program exclusively 

serving persons with disabilities. The main goals of the bill are to 

facilitate the use of mixed financing for the more timely production 

of new developments and foster the integration of housing for persons with disabilities, while allowing residents to live independently. H.R. 5772 is designed to accomplish these goals by amending 

the tenant-based rental assistance component of the program, modernizing the capital advance program and authorizing a rental assistance-only demonstration program. 

BACKGROUND AND NEED FOR LEGISLATION

The Section 811 Supportive Housing for Persons with Disabilities 

program structure consists of three components: (1) capital advances, (2) project rental assistance, and (3) tenant-based rental assistance. HUD provides no-interest capital advance grants to nonprofit sponsors, to develop rental housing, such as independent living facilities, condominium units and groups homes which have 

available supportive services for persons with disabilities. The capital advance need not be repaid if the project serves very-low-income persons with disabilities for not less than 40 years. In connection with a capital advance, HUD provides project-based assistance 

through the Project-Based Rental Assistance Contract (PRAC), 

which covers the difference between the operating cost and the 

amount residents pay in rent. 

The program also provides for tenant-based vouchers, which are 

available to families who are income eligible and include a person 

with disabilities, to lease private rental housing. Although the tenant-based voucher program was authorized under the Housing and 

Community Development Act of 1992 (P.L. 102–550), it was not 

funded until Fiscal Year 1997, at which time it was established as 

a 25 percent set aside within the Section 811 appropriation. Vouchers are administered by Public Housing Agencies and non-profit organizations. HUD did not establish a tracking system to follow 

voucher recipients or ensure that upon turnover the vouchers were 

reissued to families including persons with disabilities until 2005. 

Because there is the possibility that vouchers that were reissued by 

the public housing agencies before the tracking system was implemented were given to families who may not have included a person 

with disabilities, H.R. 5772 transfers these vouchers to the Section 

8 Housing Choice Voucher program, and requires HUD to develop 

guidance to ensure that any existing and future appropriated 

vouchers continue to serve eligible persons with disabilities. 


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As funding for the Section 811 and other supportive housing programs has declined, grant applicants have been forced to find additional or ‘‘gap’’ financing to cover the difference between the grant 

and PRAC amounts and the full project cost of developing new 

housing. At the Subcommittee on Housing and Community Opportunity hearing on the bill on June 20, 2008, the Subcommittee 

heard testimony from several witnesses on the programmatic 

delays in processing new developments, including those that raise 

‘‘gap’’ financing. One witness stated that grant processing can take 

over 2 years, in some cases causing increased project costs of up 

to 25 percent. By transferring grant processing through state housing finance agencies, H.R. 5772 encourages program sponsors to 

take full advantage other financing options by removing costly 

delays at HUD and allowing project to more efficiently bring new 

projects online. In addition, the modernized program removes disincentives for mixed financing by providing preference in the grant 

selection criteria to projects that will leverage the per-unit cost of 

units assisted with other resources. H.R. 5772 also permits project 

sponsors seeking to combine Section 811 program funds with other 

sources of financing to apply certain conforming program requirements such as development costs and use restrictions. 

H.R. 5772 authorizes a project-based rental assistance-only demonstration program (as opposed to the current program, which provides project-based rental assistance in connection with a capital 

advance grant). In the demonstration program, HUD awards funds 

to state housing finance agencies, to enter into contracts with 

project owners to provide project-based rental assistance for units 

for persons with disabilities. Eligible projects are new or existing 

projects which have received capital funds from another private or 

public funding source and have entered into agreement with the 

state or local agency responsible for health and human services to 

assist in outreach and make available appropriate services for tenants. Such projects will be subject to a 25 percent limitation on the 

percentage of units which may assist persons with disabilities, 

whether assisted by the demonstration program, or a different 

funding source. 

In addition to amending the Section 811 program structure, H.R. 

5772 revises outdated program definitions and guidelines to reflect 

the permanent housing and services needs of and choices for persons with disabilities. The Committee believes it is essential for 

HUD to issue new regulations and program guidance to implement 

the amendments made by the bill to the Section 811 program. 

HEARINGS

The Subcommittee on Housing and Community Opportunity held 

a hearing entitled ‘‘H.R. 5772, the Frank Melville Supportive Housing Investment Act of 2008’’ on June 20, 2008. The following witnesses testified: 

• Ms. Diane Randall, Executive Director, Partnership for Strong 

Communities 

• Ms. Ann O’Hara, The Technical Assistance Collaborative 

• Mr. Ronald S. Cohen, Ph.D., Chief Executive Officer, United 

Cerebral Palsy of Los Angeles, Ventura & Santa Barbara Counties 

• Mr. Mark Shelburne, North Carolina Housing Finance Agency 

• Mr. Tony Paulauski, Executive Director, The Arc of Illinois 


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COMMITTEE CONSIDERATION

The Committee on Financial Services met in open session on 

July 30, 2008, and ordered H.R. 5772, the ‘‘Frank Melville Supportive Housing Investment Act of 2008’’, as amended, favorably reported by a voice vote. 

COMMITTEE VOTES

Clause 3(b) of rule XIII of the Rules of the House of Representatives requires the Committee to list the record votes on the motion 

to report legislation and amendments thereto. No record votes were 

taken with in conjunction with the consideration of this legislation. 

A motion by Mr. Frank to report the bill, as amended, to the House 

with a favorable recommendation was agreed to by a voice vote. 

During the consideration of the bill, the following amendment 

was considered: 

An amendment by Mr. Murphy (CT), No. 1, regarding identification of projects for demonstration program and requiring a GAO 

study, was agreed to by a voice vote. 

COMMITTEE OVERSIGHT FINDINGS

Pursuant to clause 3(c)(1) of rule XIII of the Rules of the House 

of Representatives, the Committee has held a hearing and made 

findings that are reflected in this report. 

PERFORMANCE GOALS AND OBJECTIVES

Pursuant to clause 3(c)(4) of rule XIII of the Rules of the House 

of Representatives, the Committee establishes the following performance related goals and objectives for this legislation: 

H.R. 5772 amends section 811 of the Cranston-Gonzalez National 

Affordable Housing Act (P.L. 101–625), which established the 

Housing for Persons with Disabilities program. The Section 811 

program is the only HUD permanent supportive housing program 

exclusively serving persons with disabilities. The main goals of the 

bill are to facilitate the use of mixed financing for the more timely 

production of new developments and foster the integration of housing for persons with disabilities, while allowing residents to live 

independently. H.R. 5772 is designed to accomplish these goals by 

amending the tenant-based rental assistance component of the program, modernizing the capital advance program and authorizing a 

rental assistance-only demonstration program. 

NEW BUDGET AUTHORITY, ENTITLEMENT AUTHORITY, AND TAX

EXPENDITURES

In compliance with clause 3(c)(2) of rule XIII of the Rules of the 

House of Representatives, the Committee adopts as its own the estimate of new budget authority, entitlement authority, or tax expenditures or revenues contained in the cost estimate prepared by 

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974. 


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COMMITTEE COST ESTIMATE

The Committee adopts as its own the cost estimate prepared by 

the Director of the Congressional Budget Office pursuant to section 

402 of the Congressional Budget Act of 1974. 

CONGRESSIONAL BUDGET OFFICE ESTIMATE

Pursuant to clause 3(c)(3) of rule XIII of the Rules of the House 

of Representatives, the following is the cost estimate provided by 

the Congressional Budget Office pursuant to section 402 of the 

Congressional Budget Act of 1974: 

U.S. CONGRESS, CONGRESSIONAL BUDGET OFFICE, Washington, DC, September 11, 2008. 

Hon. BARNEY FRANK, 

Chairman, Committee on Financial Services, 

House of Representatives, Washington, DC. 

DEAR MR. CHAIRMAN: The Congressional Budget Office has prepared the enclosed cost estimate for H.R. 5772, the Frank Melville 

Supportive Housing Investment Act of 2008. 

If you wish further details on this estimate, we will be pleased 

to provide them. The CBO staff contact is Jessica Sherry. 

Sincerely, 

ROBERT A. SUNSHINE

(For Peter R. Orszag, Director). 

Enclosure. 

H.R. 5772—Frank Melville Supportive Housing Investment Act of 

2008 

Summary: H.R. 5772 would amend the Cranston-Gonzalez National Affordable Housing Act to make changes to a housing program that provides supportive housing for low-income persons with 

disabilities. 

CBO estimates that implementing H.R. 5772 would cost $652 

million over the 2009–2013 period, assuming appropriation of the 

necessary amounts. Enacting the bill would not affect direct spending or revenues. 

H.R. 5772 contains no intergovernmental or private-sector mandates as defined in the Unfunded Mandates Reform Act (UMRA); 

any costs to state, local, or tribal governments would be incurred 

voluntarily. 

Estimated cost to the Federal Government: The estimated budgetary impact of H.R. 5772 is shown in the following table. The costs 

of this legislation fall within budget function 600 (income security). 

By fiscal year in millions of dollars— 

2009 2010 2011 2012 2013 2009– 

2013 

CHANGES IN SPENDING SUBJECT TO APPROPRIATION 

Modernized Capital Advance Program: 

Estimated Authorization Level ......................................................... 167 170 173 176 0 686 

Estimated Outlays ........................................................................... 7 40 71 114 134 366 

Renewal of Mainstream Tenant-Based Vouchers under Section 8 Program: 

Estimated Authorization Level ......................................................... 106 0 0 0 0 106 

Estimated Outlays ........................................................................... 92 14 0 0 0 106 


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By fiscal year in millions of dollars— 

2009 2010 2011 2012 2013 2009– 

2013 

Project Rental Assistance Competitive Demonstration Program: 

Estimated Authorization Level ......................................................... 11 33 55 79 0 178 

Estimated Outlays ........................................................................... 6 23 45 68 36 178 

Delegated Processing Fees: 

Estimated Authorization Level ......................................................... 0 1 1 1 0 2 

Estimated Outlays ........................................................................... 0 1 1 1 1 2 

Total Changes: 

Estimated Authorization Level ......................................................... 284 203 229 256 0 972 

Estimated Outlays ........................................................................... 105 77 117 183 170 652 

Note.— 1 = between zero and $500,000. 

Basis of estimate: For this estimate, CBO assumes that H.R. 

5772 will be enacted near the start of fiscal year 2009, that the 

necessary amounts will be appropriated each year, and that outlays 

will follow historical spending patterns for existing programs. (H.R. 

5772 also would authorize appropriations in 2008 for supportive 

housing for the disabled; however, those amounts are not included 

in this cost estimate because CBO assumes that no further appropriations will be provided in 2008 for such programs.) 

The Supportive Housing for Persons with Disabilities program 

was established by the Cranston-Gonzalez National Affordable 

Housing Act of 1990. The program currently makes capital grants 

and project rental assistance available to nonprofit entities to develop affordable housing for low-income households headed by people with disabilities. In addition, the program currently funds tenant-based vouchers for such households. Prior to 1990, housing 

units for persons with disabilities were made available under the 

Housing for the Elderly program. 

Modernized Capital Advance Program 

Section 3 would authorize the appropriation of such sums as necessary for each of fiscal years 2008 through 2012 for the Capital 

Advance/Project Rental Assistance Contract program. In 2008, 

$162 million was made available for that program. Based on data 

from the Department of Housing and Urban Development (HUD) 

for current operations, and adjusting for inflation, CBO estimates 

that implementing this section would cost $366 million over the 

2009–2013 period, assuming appropriation of the necessary 

amounts. 

Renewal of mainstream tenant-based vouchers under Section 8 Program 

Section 2 would transfer all current vouchers under the supportive housing program and all future incremental vouchers for 

people with disabilities to the Section 8 housing choice voucher program. The bill would authorize the appropriation of such sums as 

necessary in 2009 to provide funding for the number of vouchers 

provided in fiscal year 2008 under the current mainstream voucher 

program. In 2007, HUD provided about 15,000 vouchers at an average cost of $540 a month; the numbers for 2008 are not yet available. Adjusting for inflation, CBO estimates that providing the 

same number of vouchers in 2009 would cost $106 million over the 

2007–2010 period, assuming appropriation of the necessary 

amounts. 


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Project Rental Assistance Competitive Demonstration Program 

Section 4 would authorize a new demonstration program for 

project-based assistance to subsidize housing units developed with 

funds not provided under the supportive housing program, including units developed through the Low-Income Housing Tax Credit 

and the HOME Investment Partnerships Program. Specifically, the 

bill would authorize the appropriation of such sums as may be necessary to provide 2,500 incremental dwelling units in each of fiscal 

years 2008 and 2009 and 5,000 incremental dwelling units in each 

of fiscal years 2010, 2011, and 2012. Based on information from 

HUD, CBO estimates that beginning in 2009, 2,500 units would receive such rental assistance at an average cost of about $4,200 per 

unit, reaching a cumulative total of 17,500 units in 2012. Assuming 

appropriation of the necessary amounts, CBO estimates that providing such assistance to the tenants of those properties would cost 

$178 million over the 2009–2013 period. 

Delegated processing fees 

Section 3 also would require HUD to delegate the processing of 

certain capital grants to interested state or local housing agencies. 

The provision would direct HUD to develop a schedule of reasonable fees to be paid to the delegated processing agencies and would 

allow the fees to be included as part of the total capital grant 

amount. Based on information provided by HUD, industry groups, 

and state agencies, CBO estimates that paying those fees would 

cost $2 million over the 2009–2013 period, assuming availability of 

the necessary amounts. 

Intergovernmental and private-sector impact: H.R. 5772 contains 

no intergovernmental or private-sector mandates as defmed in 

UMRA. The bill would benefit state, local, and tribal governments 

that participate in affordable housing projects and programs. Any 

costs those governments incur to comply with program requirements would be incurred voluntarily. 

Estimate prepared by: Federal Spending: Jessica Sherry; Impact 

on State, Local, and Tribal Governments: Lisa Ramirez-Branum; 

Impact on the Private Sector: Patrick Bernhardt. 

Estimate approved by: Peter H. Fontaine, Assistant Director for 

Budget Analysis. 

FEDERAL MANDATES STATEMENT

The Committee adopts as its own the estimate of Federal mandates prepared by the Director of the Congressional Budget Office 

pursuant to section 423 of the Unfunded Mandates Reform Act. 

ADVISORY COMMITTEE STATEMENT

No advisory committees within the meaning of section 5(b) of the 

Federal Advisory Committee Act were created by this legislation. 

CONSTITUTIONAL AUTHORITY STATEMENT

Pursuant to clause 3(d)(1) of rule XIII of the Rules of the House 

of Representatives, the Committee finds that the Constitutional 

Authority of Congress to enact this legislation is provided by Article 1, section 8, clause 1 (relating to the general welfare of the 


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United States) and clause 3 (relating to the power to regulate interstate commerce). 

APPLICABILITY TO LEGISLATIVE BRANCH

The Committee finds that the legislation does not relate to the 

terms and conditions of employment or access to public services or 

accommodations within the meaning of section 102(b)(3) of the Congressional Accountability Act. 

EARMARK IDENTIFICATION

H.R. 5772 does not contain any congressional earmarks, limited 

tax benefits, or limited tariff benefits as defined in clause 9 of rule 

XXI. 

SECTION-BY-SECTION ANALYSIS OF THE LEGISLATION

Section 1. Short title 

This section establishes the short title of the bill, the ‘‘Frank 

Melville Supportive Housing Investment Act of 2008.’’ 

Section 2. Tenant-based rental assistance through certificate fund 

This section transfers all existing tenant-based Mainstream 

vouchers and any future incremental vouchers for persons with disabilities to the Section 8 Housing Choice Voucher program. Additionally, the section provides protections to ensure that upon the 

turnover of these vouchers, they continue to serve persons with disabilities. 

Mainstream Tenant-Based Assistance. Authorizes appropriations 

for tenant-based assistance under the Section 8 rental assistance 

program for low-income persons with disabilities in the amount 

necessary to provide incremental vouchers for all persons previously assisted under the Mainstream Tenant-Based Rental Assistance in 2008, as well as the renewal of incremental vouchers for 

non-elderly disabled households, pursuant to appropriations acts 

for FY 1997–2002. Requires the Secretary to develop and issue 

guidance to public housing agencies to ensure that such vouchers 

continue to be provided to qualified persons with disabilities. 

Section 3. Modernized capital advance program 

This section makes a number of changes to the program to encourage integration and mixed-use developments, as well as facilitating the use of other sources of financing, such as Low Income 

Housing Tax Credits and HOME program funds. 

Project Rental Assistance Contracts. Requires the Secretary, 

upon renewal of a project-based rental assistance contract, to adjust the annual contract amount to provide for reasonable cost increases, including adequate reserves and service coordinators, as 

well as for emergency situations beyond the control of the owner. 

Lengthens the initial rental assistance contract term for projects 

assisted with any low-income housing tax credits or bonds from 20 

to 30 years, allowing such projects to more closely conform to the 

Low Income Housing Tax Credit (LIHTC) program. 

Use Restrictions. Retains the current 40-year term during which 

the project must continue to be operated as supportive housing for 


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persons with disabilities. Permits owners of supportive housing 

projects, with the approval of the Secretary, to convert projects for 

the direct benefit of very low-income persons, if the Secretary determines that the project is no longer needed for supportive housing. Prohibits the use of funds to replace State or local funds previously used to assist persons with disabilities. 

Multifamily Projects. Establishes a limitation on the overall percentage of units in a multifamily project funded by a capital advance, which are not group homes or independent living facilities, 

which may be provided for persons with disabilities. 

Delegated Processing. Requires delegated processing for multifamily 811 projects which combine capital advance funds with 

other sources of financing and that have already been approved by 

HUD, for the purpose of issuing a capital advance, to a state or 

local agency which (a) is in geographic proximity to the property, 

(b) has demonstrated experience in underwriting multifamily housing loans that provide housing and supportive services, (c) may or 

may not be providing LIHTC in combination with the 811 capital 

advance and (d) agrees to issue a firm commitment within 12 

months of delegation. Retains the Secretary’s authority to process 

capital advances where no State or local housing finance agency 

has applied. Waives the delegated underwriting requirement where 

no State or local agency has applied to provide delegated underwriting. Permits the State or local agency to charge a reasonable 

fee for processing, which will be included in the capital advance 

amount. Requires the Secretary to develop a schedule for reasonable fees to be paid for delegated underwriting. Confirms HUD Secretary’s authority to approve rents and development costs and requires that the Secretary execute a capital advance within 60 days 

of receipt of commitment. 

Leveraging Other Resources. Amends the selection criteria to 

give preference to projects that will leverage the per-unit cost of 

units assisted with other public or private resources. 

Tenant Protections and Eligibility for Occupancy. Tenant Selection: Requires owners to develop written tenant selection procedures which, in the determination of the Secretary, are consistent 

with the purpose of improving housing opportunities for very lowincome persons with disabilities and reasonably related to program 

eligibility and the applicant’s ability to perform the obligations of 

the lease. Limits occupancy to persons with disabilities and households that include at least one person with a disability. Makes 

units available to eligible persons with disabilities without regard 

to particular disability involved. Permits an owner to limit occupancy within a project to persons with disabilities who can benefit 

from the supportive services offered in connection with the housing. 

Tenant Protections. Establishes a 1-year lease. Prohibits the 

owner from terminating a lease, except in cases in which a tenant 

has seriously or repeatedly violated the terms and conditions of the 

lease, violated applicable Federal, State or local law, or for other 

good cause, and the owner has provided the tenant with written 

notice specifying the grounds of termination, 30 days prior to termination. Permits residents to choose and acquire available services for independent living facilities and multifamily housing. 

Development Cost Limitations. Limits current program development cost limitations to group homes, only. Adopts the HOME proVerDate Aug 31 2005 15:15 Sep 16, 2008 Jkt 060006 PO 00000 Frm 00016 Fmt 6659 Sfmt 6602 E:\HR\OC\HR845.XXX HR845

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gram development cost limitations on funds invested on a per-unit 

basis. Provides waivers of cost limitations in cases in which the 

cost limits may be waived to provide for the cost of special design 

features to make housing accessible, the cost of special design features necessary to make individual dwelling units meet the special 

needs of persons with disabilities and the cost of providing the 

housing in a location that is accessible to public transportation and 

community organizations that provide supportive services. 

Repeal of Authority To Waive Size Limitations. Repeals the authority of the Secretary to waive the size limitations on group 

homes and independent living facilities. 

Minimum Allocation for Multifamily Projects. Requires the Secretary to establish a minimum percentage of capital advance funds 

to be used for multifamily projects. 

Section 4. Project Rental Assistance Competitive Demonstration Program 

This section authorizes a demonstration program in which 

projects will be awarded project-based rental assistance contracts 

only and not new construction capital advance grants. These 

project-based units will be within larger multifamily housing 

projects and are intended to facilitate the creation of mixed-use 

housing. 

Authority. Requires the Secretary to make available project rental assistance funds to State and local financing agencies and other 

appropriate agencies to carry out a demonstration program to provide dwelling units in eligible projects. 

Project-Rental Assistance. Requires the Secretary to make 

monthly rental assistance payments to projects for an initial contract term of 15 years, with 5-year renewals. Limits the number of 

reserved for persons with disabilities in projects to no more than 

25 percent of the total number of units in such project, in projects 

assisted under this demonstration program. Prohibits the provision 

of capital advance grant funds for any project which receives assistance under the demonstration program. Limits the eligible occupants of units assisted under the demonstration to extremely lowincome persons with disabilities. 

Eligible Projects. Establishes the eligibility of projects as a new 

or existing multifamily housing project for which the development 

costs are paid with resources from other public or private sources 

and a commitment had been made (a) by the State HFA for the allocation of tax credits, (b) by the applicable participating jurisdiction for HOME assistance, or (c) any other Federal, State or local 

funding for the project from other sources. 

State Agency Involvement. Limits project eligibility to projects 

for which the State agency responsible for health and human services program, and the State agency designated to administer Medicaid assistance have entered into such agreements (a) to identify 

and target populations to be served by project, (b) to set forth 

methods for outreach and referral, and (c) to make available appropriate services for tenants of the project. 

Use Requirements. Requires all dwelling units assisted under 

this demonstration program will be operated as supportive housing 

for persons with disabilities for 30 years, for extremely low-income 

persons with disabilities. 


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Report. Requires the Secretary to submit to Congress 5 years 

after the enactment of this act, describing the demonstration program, its effectiveness and any recommendations regarding future 

models for assist under this act. 

Section 5. Technical corrections 

This section makes technical corrections to the statute to clarify 

and amend certain program guidelines and definitions. 

Amends the purpose of the program to include the promotion and 

facilitation of community integration for persons with significant 

and long-term disabilities; the application requirements for supportive service plans; and the project selection criteria to encourage 

the use of locations that will facilitate the provision of services and 

other basic needs. Eliminates the owner deposit requirement. 

Revises the definition of Group Home to require a separate bedroom for each tenant. Revises the definition of persons with disabilities to apply to persons between 18 and 62 years of age, who has 

a disability as defined in section 223 of the Social Security Act and 

is determined, pursuant to regulations issued by the Secretary, to 

have a physical, mental or emotional impairment, which (a) is expected to be of a long-continued and indefinite duration, (b) substantially impedes his or her ability to live independently, and (c) 

is of such a nature that such ability could be improved by more 

suitable housing conditions, or has a developmental disability as 

defined in section 102 of the Development Disabilities Assistance 

and Bill of Rights Act of 2000. Confirms that persons with AIDS 

are not excluded by this definition. Clarifies that individuals shall 

not be considered persons with disabilities under this definition, 

based solely on drug or alcohol dependence. Requires the Secretary 

to prescribe regulations to implement this definition and to prevent 

abuses in determining eligibility of households. Revises the definition of ‘‘supportive housing for persons with disabilities’’ to dwelling units that are designed to meet the permanent housing needs 

of very low-income persons with disabilities and make available 

supportive services that address the individual health, mental 

health, or other needs of such persons. 

Section 6. Authorization of appropriations 

Authorizes an appropriation of such sums as may be necessary 

for the capital advance/project rental assistance contract. Authorizes such sums as may be necessary for the demonstration program 

to provide for 2,500 incremental dwelling units under such program 

for 2008 and 2009 and 5,000 incremental dwelling units under the 

demonstration program for fiscal years 2010, 2011 and 2012. 

Section 7. New regulations and program guidance 

Requires the Secretary to issue implementing regulations within 

180 days of enactment. 

Section 8. GAO study 

Directs GAO to assess the number of households assisted by the 

Section 811 Supportive Housing for Persons with Disabilities program, the number of Section 811-eligible households currently living in other HUD-assisted housing, and the extent to which those 

households have access to supportive services. 


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CHANGES IN EXISTING LAW MADE BY THE BILL, AS REPORTED

In compliance with clause 3(e) of rule XIII of the Rules of the 

House of Representatives, changes in existing law made by the bill, 

as reported, are shown as follows (existing law proposed to be omitted is enclosed in black brackets, new matter is printed in italic, 

existing law in which no change is proposed is shown in roman): 

CRANSTON-GONZALEZ NATIONAL AFFORDABLE 

HOUSING ACT 

* * * * * * * 

TITLE VIII—HOUSING FOR PERSONS WITH 

SPECIAL NEEDS 

* * * * * * * 

Subtitle B—Supportive Housing for Persons With 

Disabilities 

SEC. 811. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES. 

(a) PURPOSE.—The purpose of this section is to enable persons 

with disabilities to live with dignity and independence within their 

communities by expanding the supply of supportive housing that— 

(1) is designed to accommodate the special needs of such persons; øand¿ 

(2) øprovides¿ makes available supportive services that address the individual health, mental health, and other needs of 

such personsø.¿; and 

(3) promotes and facilitates community integration for people 

with significant and long-term disabilities. 

ø(b) AUTHORITY TO PROVIDE ASSISTANCE.—The Secretary is authorized— 

ø(1) to provide tenant-based rental assistance to eligible persons 

with disabilities, in accordance with subsection (d)(4); and 

ø(2) to provide assistance to private, nonprofit organizations to 

expand the supply of supportive housing for persons with disabilities, which shall be provided as— 

ø(A) capital advances in accordance with subsection (d)(1), 

and 

ø(B) contracts for project rental assistance in accordance 

with subsection (d)(2);¿ 

(b) AUTHORITY TO PROVIDE ASSISTANCE.—The Secretary is authorized to provide assistance to private nonprofit organizations to 

expand the supply of supportive housing for persons with disabilities, which shall be provided as— 

(1) capital advances in accordance with subsection (d)(1), and 

(2) contracts for project rental assistance in accordance with 

subsection (d)(2). 

øassistance under this paragraph¿ Assistance under this subsection 

may be used to finance the acquisition, acquisition and moderate 

rehabilitation, construction, reconstruction, or moderate or substantial rehabilitation of housing, including the acquisition from the 

Resolution Trust Corporation, to be used as supportive housing for 


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persons with disabilities and may include real property acquisition, 

site improvement, conversion, demolition, relocation, and other expenses that the Secretary determines are necessary to expand the 

supply of supportive housing for persons with disabilities. 

(c) GENERAL REQUIREMENTS.—The Secretary shall take such actions as may be necessary to ensure that— 

(1) assistance made available under this section will be used 

to meet the øspecial¿ housing and community-based services 

needs of persons with disabilities by providing a variety of 

housing options, ranging from group homes and independent 

living facilities to dwelling units in multifamily housing developments, condominium housing, and cooperative housing; and 

(2) supportive housing for persons with disabilities assisted 

under this section shall— 

ø(A) provide persons with disabilities occupying such 

housing with supportive services that address their individual needs;¿ 

(A) make available voluntary supportive services that address the individual needs of persons with disabilities occupying such housing; 

(B) provide such persons with opportunities for optimal 

independent living and participation in normal daily 

activitiesø,¿; and 

* * * * * * * 

(d) FORMS OF ASSISTANCE.— (1) CAPITAL ADVANCES.—A capital advance øprovided under 

this section shall bear¿ provided pursuant to subsection (b)(1) 

shall bear no interest and its repayment shall not be required 

so long as the housing remains available for very-low-income 

persons with disabilities in accordance with this section. Such 

advance shall be in an amount calculated in accordance with 

the development cost limitation established in subsection (h). 

(2) PROJECT RENTAL ASSISTANCE.—(A) INITIAL PROJECT RENT- AL ASSISTANCE CONTRACT.—Contracts for project rental assistance shall comply with subsection (e)(2) and shall obligate the 

Secretary to make monthly payments to cover any part of the 

costs attributed to units occupied (or, as approved by the Secretary, held for occupancy) by very low-income persons with 

disabilities that is not met from project income. The øannual 

contract amount¿ amount provided under the contract for each 

year covered by the contract for any project shall not exceed the 

sum of the initial annual project rentals for all units and any 

initial utility allowances for such units, as approved by the 

Secretary. Any contract amounts not used by a project in any 

year shall remain available to the project until the expiration 

of the contract. The Secretary may adjust the øannual contract 

amount¿ amount provided under the contract for each year covered by the contract if the sum of the project income and the 

amount of assistance payments available under this paragraph 

are inadequate to provide for reasonable project costs. In the 

case of an intermediate care facility which is the residence of 

persons assisted under title XIX of the Social Security Act, 

project income under this paragraph shall include the same 

amount as if such person were being assisted under title XVI 

of the Social Security Act. 


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(B) RENEWAL OF AND INCREASES IN CONTRACT AMOUNTS.— (i) EXPIRATION OF CONTRACT TERM.—Upon the expiration 

of each contract term, subject to the availability of amounts 

made available in appropriation Acts, the Secretary shall 

adjust the annual contract amount to provide for reasonable project costs, and any increases, including adequate 

reserves 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. 

* * * * * * * 

ø(4) TENANT-BASED RENTAL ASSISTANCE.— ø(A) ADMINISTERING ENTITIES.—Tenant-based rental assistance provided under subsection (b)(1) may be provided 

only through a public housing agency that has submitted 

and had approved a plan under section 7(d) of the United 

States Housing Act of 1937 (42 U.S.C. 1437e(d)) that provides for such assistance, or through a private nonprofit 

organization. A public housing agency shall be eligible to 

apply under this section only for the purposes of providing 

such tenant-based rental assistance. 

ø(B) PROGRAM RULES.—Tenant-based rental assistance 

under subsection (b)(1) shall be made available to eligible 

persons with disabilities and administered under the same 

rules that govern tenant-based rental assistance made 

available under section 8 of the United States Housing Act 

of 1937, except that the Secretary may waive or modify 

such rules, but only to the extent necessary to provide for 

administering such assistance under subsection (b)(1) 

through private nonprofit organizations rather than 

through public housing agencies. 

ø(C) ALLOCATION OF ASSISTANCE.—In determining the 

amount of assistance provided under subsection (b)(1) for 

a private nonprofit organization or public housing agency, 

the Secretary shall consider the needs and capabilities of 

the organization or agency, in the case of a public housing 

agency, as described in the plan for the agency under section 7 of the United States Housing Act of 1937.¿ 

(e) øTERM OF COMMITMENT¿ PROGRAM REQUIREMENTS.— ø(1) USE LIMITATIONS.—All units in housing assisted under 

subsection (b)(2) shall be made available for occupancy by very 

low-income persons with disabilities for not less than 40 

years.¿ 

(1) USE RESTRICTIONS.— (A) TERM.—Any project for which a capital advance is 

provided under subsection (d)(1) shall be operated for not 

less than 40 years as supportive housing for persons with 

disabilities, in accordance with the application for the 

project approved by the Secretary and shall, during such 

period, be made available for occupancy only by very lowincome persons with disabilities. 


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(B) CONVERSION.—If the owner of a project requests the 

use of the project for the direct benefit of very low-income 

persons with disabilities and, pursuant to such request the 

Secretary determines that a project is no longer needed for 

use as supportive housing for persons with disabilities, the 

Secretary may approve the request and authorize the owner 

to convert the project to such use. 

(2) CONTRACT TERMS.—The initial term of a contract entered 

into under subsection (d)(2) shall be 240 months, except that, 

in the case of the sponsor of a project assisted with any low-income housing tax credit pursuant to section 42 of the Internal 

Revenue Code of 1986 or with any tax-exempt housing bonds, 

the contract shall have an initial term of not be less than 360 

months and shall provide funding for a term of 60 months. The 

Secretary shall, to the extent approved in appropriation Acts, 

øextend any expiring contract¿ upon expiration of a contract 

(or any renewed contract), renew such contract for a term of not 

less than 60 months. In order to facilitate the orderly extension 

of expiring contracts, the Secretary is authorized to make commitments to extend expiring contracts during the year prior to 

the date of expiration. 

(3) LIMITATION ON USE OF FUNDS.—No assistance received 

under this section (or any State or local government funds used 

to supplement such assistance) may be used to replace other 

State or local funds previously used, or designated for use, to 

assist persons with disabilities. 

(4) MULTIFAMILY PROJECTS.— (A) LIMITATION.—Except as provided in subparagraph 

(B), of the total number of dwelling units in any multifamily housing project (including any condominium or cooperative housing project) containing any unit for which assistance is provided from a capital grant under subsection 

(d)(1) made after the date of the enactment of the Frank 

Melville Supportive Housing Investment Act of 2008, the 

aggregate number that are used for persons with disabilities, including supportive housing for persons with disabilities, or to which any occupancy preference for persons with 

disabilities applies, may not exceed 25 percent of such total. 

(B) EXCEPTION.—Subparagraph (A) shall not apply in 

the case of any project that is a group home or independent 

living facility. 

(f) APPLICATIONS.—Funds made available under subsection (b)(2) 

shall be allocated by the Secretary among approvable applications 

submitted by private nonprofit organizations. Applications for assistance under subsection (b)(2) shall be submitted in such form 

and in accordance with such procedures as the Secretary shall establish. Such applications shall contain— 

(1) * * * 

* * * * * * * 

(3) a supportive service plan that contains— 

(A) * * * 

(B) assurances that persons with disabilities occupying 

such housing will øreceive¿ be offered supportive services 

based on their individual needs; 


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ø(C) evidence of the applicant’s (or a designated service 

provider’s) experience in providing such supportive services;¿ 

(C) evidence of the applicant’s experience in— 

(i) providing such supportive services; or 

(ii) creating and managing structured partnerships 

with service providers for the delivery of appropriate 

community-based services; 

(D) a description of the manner in which such services 

will be provided to øsuch persons, including evidence of 

such residential supervision as the Secretary determines is 

necessary to facilitate the adequate provision of such services¿ tenants; and 

(E) identification of the extent of other Federal, and 

State and local funds available to assist in the provision of 

such services; 

(4) a certification from the appropriate State or local agency 

(as determined by the Secretary) that the provision of the services identified in paragraph (3) are well designed to serve the 

øspecial¿ housing and community-based services needs of persons with disabilities; 

* * * * * * * 

(g) øSELECTION CRITERIA.—¿ SELECTION CRITERIA AND PROC- ESSING.—(1) SELECTION CRITERIA.—The Secretary shall establish 

selection criteria for assistance under this section, which shall include— 

ø(1)¿ (A) the ability of the applicant to develop and operate 

the proposed housing; 

ø(2)¿ (B) the need for housing for persons with disabilities in 

the area to be served; 

ø(3)¿ (C) the extent to which the proposed design of the 

housing will meet the special needs of persons with disabilities; 

ø(4)¿ (D) the extent to which the applicant has demonstrated 

that øthe necessary supportive services will be provided¿ appropriate supportive services will be made available on a consistent, long-term basis; 

ø(5) the extent to which the proposed design of the housing 

will accommodate the provision of such services;¿ 

(E) the extent to which the location and design of the proposed project will facilitate the provision of community-based 

supportive services and address other basic needs of persons 

with disabilities, including access to appropriate and accessible 

transportation, access to community services agencies, public facilities, and shopping; 

(F) the extent to which the per-unit cost of units to be assisted 

under this section will be supplemented with resources from 

other public and private sources; 

ø(6)¿ (G) the extent to which the applicant has control of the 

site of the proposed housing; and 

ø(7)¿ (H) such other factors as the Secretary determines to 

be appropriate to ensure that funds made available under this 

section are used effectively. 

(2) DELEGATED PROCESSING.— (A) In issuing a capital advance under subsection (d)(1) for 

any multifamily project (but not including any project that is 


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a group home or independent living facility) for which financing for the purposes described in the last sentence of subsection 

(b) is provided by a combination of the capital advance and 

sources other than this section, within 30 days of award of the 

capital advance, the Secretary shall delegate review and processing of such 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) The Secretary shall retain the authority to process capital 

advances in cases in which no State or local housing agency 

has applied to provide delegated processing pursuant to this 

paragraph or no such agency has entered into an agreement 

with the Secretary to serve as a delegated processing agency. 

(C) 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. The Secretary shall 

develop a schedule for reasonable fees under this subparagraph 

to be paid to delegated processing agencies, which shall take 

into consideration any other fees to be paid to the agency for 

other funding provided to the project by the agency, including 

bonds, tax credits, and other gap funding. 

(D) Under such delegated system, the Secretary shall retain 

the authority to approve rents and development costs and to 

execute a capital advance within 60 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. 

(h) DEVELOPMENT COST LIMITATIONS.— 

(1) øIN GENERAL¿ GROUP HOMES.—The Secretary shall periodically establish development cost limitations by market area 

for øvarious types and sizes¿ group homes of supportive housing for persons with disabilities by publishing a notice of the 

cost limitations in the Federal Register. The cost limitations 

shall reflect— 

(A) * * * 

* * * * * * * 

ø(E) the cost of congregate space necessary to accommodate the provision of supportive services to persons with 

disabilities;¿ 

ø(F)¿ (E) if the housing is newly constructed, the cost of 

meeting the energy efficiency standards promulgated by 

the Secretary in accordance with section 109 of the Cranston-Gonzalez National Affordable Housing Act; and 


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ø(G)¿ (F) the cost of land, including necessary site improvement. 

* * * * * * * 

(3) ANNUAL ADJUSTMENTS.—The Secretary shall adjust the 

cost limitation established pursuant to paragraph (1) not less 

than once annually to reflect changes in the general level of acquisition, construction, reconstruction, or rehabilitation costs. 

* * * * * * * 

(6) APPLICABILITY OF HOME PROGRAM COST LIMITATIONS.— 

(A) IN GENERAL.—The provisions of section 212(e) of the 

Cranston-Gonzalez National Affordable Housing Act (42 

U.S.C. 12742(e)) and the cost limits established by the Secretary pursuant to such section with respect to the amount 

of funds under subtitle A of title II of such Act that may 

be invested on a per unit basis, shall apply to supportive 

housing assisted with a capital advance under subsection 

(d)(1) and the amount of funds under such subsection that 

may be invested on a per unit basis. 

(B) WAIVERS.—The Secretary shall provide for waiver of 

the cost limits applicable pursuant to subparagraph (A)— 

(i) in the cases in which the cost limits established 

pursuant to section 212(e) of the Cranston-Gonzalez 

National Affordable Housing Act may be waived; and 

(ii) to provide for— 

(I) the cost of special design features to make the 

housing accessible to persons with disabilities; 

(II) the cost of special design features necessary 

to make individual dwelling units meet the special 

needs of persons with disabilities; and 

(III) the cost of providing the housing in a location that is accessible to public transportation and 

community organizations that provide supportive 

services to persons with disabilities. 

ø(i) TENANT SELECTION.—(1) An owner shall adopt written tenant selection procedures that are satisfactory to the Secretary as 

(A) consistent with the purpose of improving housing opportunities 

for very low-income persons with disabilities; and (B) reasonably 

related to program eligibility and an applicant’s ability to perform 

the obligations of the lease. Owners shall promptly notify in writing any rejected applicant of the grounds for any rejection. 

ø(2) Notwithstanding any other provision of law, an owner may, 

with the approval of the Secretary, limit occupancy within housing 

developed under this section to persons with disabilities who have 

similar disabilities and require a similar set of supportive services 

in a supportive housing environment.¿ 

(i) ADMISSION AND OCCUPANCY.— 

(1) TENANT SELECTION.— 

(A) PROCEDURES.—An owner shall adopt written tenant 

selection procedures that are satisfactory to the Secretary as 

(i) consistent with the purpose of improving housing opportunities for very low-income persons with disabilities; and 

(ii) reasonably related to program eligibility and an applicant’s ability to perform the obligations of the lease. Owners 


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shall promptly notify in writing any rejected applicant of 

the grounds for any rejection. 

(B) REQUIREMENT FOR OCCUPANCY.—Occupancy in dwelling units provided assistance under this section shall be 

available only to persons with disabilities and households 

that include at least one person with a disability. 

(C) AVAILABILITY.—Except only as provided in subparagraph (D), occupancy in dwelling units in housing provided 

with assistance under this section shall be available to all 

persons with disabilities eligible for such occupancy without regard to the particular disability involved. 

(D) LIMITATION ON OCCUPANCY.—Notwithstanding any 

other provision of law, the owner of housing developed 

under this section may, with the approval of the Secretary, 

limit occupancy within the housing to persons with disabilities who can benefit from the supportive services offered in 

connection with the housing. 

(2) TENANT PROTECTIONS.— 

(A) LEASE.—The lease between a tenant and an owner of 

housing assisted under this section shall be for not less 

than one year, and shall contain such terms and conditions 

as the Secretary shall determine to be appropriate. 

(B) TERMINATION OF TENANCY.—An owner may not terminate the tenancy or refuse to renew the lease of a tenant 

of a rental dwelling unit assisted under this section except— 

(i) for serious or repeated violation of the terms and 

conditions of the lease, for violation of applicable Federal, State, or local law, or for other good cause; and 

(ii) by providing the tenant, not less than 30 days before such termination or refusal to renew, with written 

notice specifying the grounds for such action. 

(C) VOLUNTARY PARTICIPATION IN SERVICES.—A supportive service plan for housing assisted under this section 

shall permit each resident to take responsibility for choosing and acquiring their own services, to receive any supportive services made available directly or indirectly by the 

owner of such housing, or to not receive any supportive 

services. 

(j) MISCELLANEOUS PROVISIONS.— 

(1) * * * 

* * * * * * * 

ø(4) OWNER DEPOSIT.—The Secretary may require an owner 

to deposit an amount not to exceed $10,000 in a special escrow 

account to assure the owner’s commitment to the housing.¿ 

ø(5)¿ (4) NOTICE OF APPEAL.—The Secretary shall notify an 

owner not less than 30 days prior to canceling any reservation 

of assistance provided under this section. During the 30-day 

period following the receipt of a notice under the preceding 

sentence, an owner may appeal the proposed cancellation. Such 

appeal, including review by the Secretary, shall be completed 

not later than 45 days after the appeal is filed. 

ø(6)¿ (5) LABOR STANDARDS.— 


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(A) * * * 

* * * * * * * 

ø(7)¿ (6) USE OF PROJECT RESERVES.—Amounts for project reserves for a project assisted under this section may be used for 

costs, subject to reasonable limitations as the Secretary determines appropriate, for reducing the number of dwelling units 

in the project. Such use shall be subject to the approval of the 

Secretary to ensure that the use is designed to retrofit units 

that are currently obsolete or unmarketable. 

(k) PROJECT RENTAL ASSISTANCE-ONLY COMPETITIVE DEM- ONSTRATION PROGRAM.— (1) AUTHORITY.—The Secretary shall carry out a demonstration program under this subsection to expand the supply of supportive housing for non-elderly adults with disabilities, under 

which the Secretary shall make funds available for project rental assistance pursuant to paragraph (2) for eligible projects 

under paragraph (3). The Secretary shall provide for State 

housing finance agencies and other appropriate entities to apply 

to the Secretary for such project rental assistance funds, which 

shall be made available by such agencies and entities for dwelling units in eligible projects based upon criteria established by 

the Secretary for the demonstration program under this subsection. The Secretary may not require any State housing finance agency or other entity applying for project rental assistance funds under the demonstration program to identify in 

such application the eligible projects for which such funds will 

be used, and shall allow such agencies and applicants to subsequently identify such eligible projects pursuant to the making of 

commitments described in paragraph (3)(B). 

(2) PROJECT RENTAL ASSISTANCE.— (A) CONTRACT TERMS.—Project rental assistance under 

the demonstration program under this subsection shall be 

provided— 

(i) in accordance with subsection (d)(2); 

(ii) under a contract having an initial term of not 

less than 180 months that provides funding for a term 

60 months, which funding shall be renewed upon expiration, subject to the availability of sufficient amounts 

in appropriation Acts. 

(B) LIMITATION ON UNITS ASSISTED.—Of the total number 

of dwelling units in any multifamily housing project containing any unit for which project rental assistance under 

the demonstration program under this subsection is provided, the aggregate number that are provided such project 

rental assistance, that are used for supportive housing for 

persons with disabilities, or to which any occupancy preference for persons with disabilities applies, may not exceed 

25 percent of such total. 

(C) PROHIBITION OF CAPITAL ADVANCES.—The Secretary 

may not provide a capital advance under subsection (d)(1) 

for any project for which assistance is provided under the 

demonstration program. 

(D) ELIGIBLE POPULATION.—Project rental assistance 

under the demonstration program under this subsection 

may be provided only for dwelling units for extremely lowVerDate Aug 31 2005 15:15 Sep 16, 2008 Jkt 060006 PO 00000 Frm 00027 Fmt 6659 Sfmt 6603 E:\HR\OC\HR845.XXX HR845

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income persons with disabilities and extremely low-income 

households that include at least one person with a disability. 

(3) ELIGIBLE PROJECTS.—An eligible project under this paragraph is a new or existing multifamily housing project for 

which— 

(A) the development costs are paid with resources from 

other public or private sources; and 

(B) a commitment has been made— 

(i) by the applicable State agency responsible for allocation of low-income housing tax credits under section 42 of the Internal Revenue Code of 1986, for an allocation of such credits; 

(ii) by the applicable participating jurisdiction that 

receives assistance under the HOME Investment Partnership Act, for assistance from such jurisdiction; or 

(iii) by any Federal agency or any State or local government, for funding for the project from funds from 

any other sources. 

(4) STATE AGENCY INVOLVEMENT.—Assistance under the demonstration may be provided only for projects for which the applicable State agency responsible for health and human services 

programs, and the applicable State agency designated to administer or supervise the administration of the State plan for 

medical assistance under title XIX of the Social Security Act, 

have entered into such agreements as the Secretary considers 

appropriate— 

(A) to identify the target populations to be served by the 

project; 

(B) to set forth methods for outreach and referral; and 

(C) to make available appropriate services for tenants of 

the project. 

(5) USE REQUIREMENTS.—In the case of any project for which 

project rental assistance is provided under the demonstration 

program under this subsection, the dwelling units assisted pursuant to paragraph (2) shall be operated for not less than 30 

years as supportive housing for persons with disabilities, in accordance with the application for the project approved by the 

Secretary, and such dwelling units shall, during such period, 

be made available for occupancy only by persons and households described in paragraph (2)(D). 

(6) REPORT.—Upon the expiration of the 5-year period beginning on the date of the enactment of the Frank Melville Supportive Housing Investment Act of 2008, the Secretary shall 

submit to the Congress a report describing the demonstration 

program under this subsection, analyzing the effectiveness of 

the program, including the effectiveness of the program compared to the program for capital advances in accordance with 

subsection (d)(1) (as in effect pursuant to the amendments made 

by such Act), and making recommendations regarding future 

models for assistance under this section based upon the experiences under the program. 

ø(k)¿ (l) DEFINITIONS.—As used in this section— 

(1) The term ‘‘group home’’ means a single family residential 

structure designed or adapted for occupancy by not more than 


cprice-sewell on PROD1PC72 with HEARING
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8 persons with disabilities, which provides a separate bedroom 

for each tenant of the residence. øThe Secretary may waive the 

project size limitation contained in the previous sentence if the 

applicant demonstrates that local market conditions dictate the 

development of a larger project.¿ Not more than 1 home may 

be located on any one site and no such home may be located 

on a site contiguous to another site containing such a home. 

ø(2) The term ‘‘person with disabilities’’ means a household 

composed of one or more persons at least one of whom is an 

adult who has a disability. A person shall be considered to 

have a disability if such person is determined, pursuant to regulations issued by the Secretary to have a physical, mental, or 

emotional impairment which (A) is expected to be of long-continued and indefinite duration, (B) substantially impedes his or 

her ability to live independently, and (C) is of such a nature 

that such ability could be improved by more suitable housing 

conditions. A person shall also be considered to have a disability if such person has a developmental disability as defined 

in section 102 of the Developmental Disabilities Assistance and 

Bill of Rights Act of 2000. The Secretary shall prescribe such 

regulations as may be necessary to prevent abuses in determining, under the definitions contained in this paragraph, the 

eligibility of families and persons for admission to and occupancy of housing assisted under this section. Notwithstanding 

the preceding provisions of this paragraph, the term ‘‘person 

with disabilities’’ includes two or more persons with disabilities 

living together, one or more such persons living with another 

person who is determined (under regulations prescribed by the 

Secretary) to be important to their care or well-being, and the 

surviving member or members of any household described in 

the first sentence of this paragraph who were living, in a unit 

assisted under this section, with the deceased member of the 

household at the time of his or her death. 

ø(3) The term ‘‘supportive housing for persons with disabilities’’ means housing that— 

ø(A) is designed to meet the special needs of persons 

with disabilities, and 

ø(B) provides supportive services that address the individual health, mental health or other special needs of such 

persons.¿ 

(2)(A) The term ‘‘person with disabilities’’ means a person 

who is 18 years of age or older and less than 62 years of age, 

who— 

(i) has a disability as defined in section 223 of the Social 

Security Act, 

(ii) is determined, pursuant to regulations issued by the 

Secretary, to have a physical, mental, or emotional impairment which— 

(I) is expected to be of long-continued and indefinite 

duration; 

(II) substantially impedes his or her ability to live 

independently; and 

(III) is of such a nature that such ability could be 

improved by more suitable housing conditions; or 


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(iii) has a developmental disability as defined in section 

102 of the Developmental Disabilities Assistance and Bill of 

Rights Act of 2000. 

(B) Such term shall not exclude persons who have the disease of 

acquired immunodeficiency syndrome or any conditions arising 

from the etiologic agent for acquired immunodeficiency syndrome. 

Notwithstanding any other provision of law, no individual shall be 

considered a person with disabilities, for purposes of eligibility for 

low-income housing under this title, solely on the basis of any drug 

or alcohol dependence. The Secretary shall consult with other appropriate Federal agencies to implement the preceding sentence. 

(C) The Secretary shall prescribe such regulations as may be necessary to prevent abuses in determining, under the definitions contained in this paragraph, the eligibility of families and persons for 

admission to and occupancy of housing assisted under this section. 

Notwithstanding the preceding provisions of this paragraph, the 

term ‘‘person with disabilities’’ includes two or more persons with 

disabilities living together, one or more such persons living with another person who is determined (under regulations prescribed by the 

Secretary) to be important to their care or well-being, and the surviving member or members of any household described in subparagraph (A) who were living, in a unit assisted under this section, 

with the deceased member of the household at the time of his or her 

death. 

(3) The term ‘‘supportive housing for persons with disabilities’’ means dwelling units that— 

(A) are designed to meet the permanent housing needs of 

very low-income persons with disabilities; and 

(B) are located in housing that make available supportive 

services that address the individual health, mental health, 

or other needs of such persons. 

(4) The term ‘‘independent living facility’’ means a project designed for occupancy by not more than 24 persons with disabilities ø(or such higher number of persons as permitted under 

criteria that the Secretary shall prescribe, subject to the limitation under subsection (h)(6))¿ in separate dwelling units where 

each dwelling unit includes a kitchen and a bath. 

(5) The term ‘‘owner’’ means a private nonprofit organization 

that receives assistance under this section to develop and operate øa project for¿ supportive housing for persons with disabilities. 

(6) The term ‘‘private nonprofit organization’’ means any institution or foundation— 

(A) * * * 

* * * * * * * 

Such term includes a for-profit limited partnership the sole general 

partner of which is an organization meeting the requirements under 

subparagraphs (A), (B), (C), and (D) or a corporation controlled by 

an organization meeting the requirements under subparagraphs (A), 

(B), (C), and (D). 

* * * * * * * 

ø(l)¿ (m) ALLOCATION OF FUNDS.—ø(1) ALLOCATION.—Of any 

amount made available for assistance under this section in any fiscal year, an amount shall be used for assistance under subsection 


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(b)(2) that is not less than the amount made available in appropriation Acts for such assistance in the preceding year.¿ 

(1) MINIMUM ALLOCATION FOR MULTIFAMILY PROJECTS.—The 

Secretary shall establish a minimum percentage of the amount 

made available for each fiscal year for capital advances under 

subsection (d)(1) that shall be used for multifamily projects subject to subsection (e)(4). 

(2) CAPITAL ADVANCES.—Of any amounts made available for 

assistance under subsection (b), such sums as may be necessary shall be available for funding capital advances in accordance with øsubsection (c)(1)¿ subsection (d)(1). Such 

amounts, the repayments from such advances, and the proceeds from notes or obligations issued under this section prior 

to the enactment of this Act shall constitute a revolving fund 

to be used by the Secretary in carrying out this section. 

(3) PROJECT RENTAL ASSISTANCE.—Of any amounts made 

available for assistance under subsection (b), such sums as 

may be necessary shall be available for funding project rental 

assistance in accordance with øsubsection (c)(2)¿ subsection 

(d)(2). ø(4) SIZE LIMITATION.—Of any amounts made available for 

any fiscal year and used for capital advances or project rental 

assistance under paragraphs (1) and (2) of subsection (d), not 

more than 25 percent may be used for supportive housing 

which contains more than 24 separate dwelling units.¿ 

ø(m) AUTHORIZATION OF APPROPRIATIONS.—There are authorized 

to be appropriated for providing assistance under this section such 

sums as may be necessary for each of fiscal years 2001, 2002, and 

2003.¿ 

(n) AUTHORIZATION OF APPROPRIATIONS.—There is authorized to 

be appropriated for each of fiscal years 2008 through 2012 the following amounts: 

(1) CAPITAL ADVANCE/PRAC PROGRAM.—For providing assistance pursuant to subsection (b), such sums as may be necessary. 

(2) DEMONSTRATION PROGRAM.—For carrying out the demonstration program under subsection (k), such sums as may be 

necessary to provide 2,500 incremental dwelling units under 

such program in each of fiscal years 2008 and 2009 and 5,000 

incremental dwelling units under such program in each of fiscal years 2010, 2011, and 2012. 

ø(n)¿ (o) EFFECTIVE DATE AND APPLICABILITY.— (1) * * * 

* * * * * * * 

(p) AUTHORIZATION OF APPROPRIATIONS FOR SECTION 8 ASSIST- ANCE.— 

(1) IN GENERAL.—There is authorized to be appropriated for 

tenant-based rental assistance under section 8(o) of the United 

States Housing Act of 1937 (42 U.S.C. 1437f(o)) for persons 

with disabilities in fiscal year 2009 the amount necessary to 

provide a number of incremental vouchers under such section 

that is equal to the number of vouchers provided in fiscal year 

2008 under the tenant-based rental assistance program under 

subsection (d)(4) of this section (as in effect before the date of 

the enactment of the Frank Melville Supportive Housing Investment Act of 2008). 


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(2) REQUIREMENTS UPON TURNOVER.—The Secretary shall develop and issue, to public housing agencies that receive voucher 

assistance made available under this subsection and to public 

housing agencies that received voucher assistance under section 

8(o) of the United States Housing Act of 1937 (42 U.S.C. 

1437f(o)) for non-elderly disabled families pursuant to appropriation Acts for fiscal years 1997 through 2002 or any other 

subsequent appropriations for incremental vouchers for non-elderly disabled families, guidance to ensure that, to the maximum extent possible, such vouchers continue to be provided 

upon turnover to qualified persons with disabilities or to qualified non-elderly disabled families, respectively. 

* * * * * * * 

Æ 


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