II

106TH CONGRESS

2D SESSION S. 2733

To provide for the preservation of assisted housing for low-income elderly

persons, disabled persons, and other families.

IN THE SENATE OF THE UNITED STATES

JUNE 15, 2000

Mr. SANTORUM (for himself, Mr. KERRY, and Mr. SARBANES) introduced the

following bill; which was read twice and referred to the Committee on

Banking, Housing, and Urban Affairs

A BILL

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

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Affordable Housing for Seniors and Families Act’’.

6 (b) TABLE OF CONTENTS.—The table of contents for

7 this Act is as follows:

Sec. 1. Short title and table of contents.

Sec. 2. Regulations.

Sec. 3. Effective date.

TITLE I—REFINANCING FOR SECTION 202 SUPPORTIVE HOUSING

FOR THE ELDERLY
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Sec. 101. Prepayment and refinancing.

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

DISABILITIES

Sec. 201. Supportive housing for elderly persons.

Sec. 202. Supportive housing for persons with disabilities.

Sec. 203. Service coordinators and congregate services for elderly and disabled

housing.

TITLE III—EXPANDING HOUSING OPPORTUNITIES FOR THE

ELDERLY AND PERSONS WITH DISABILITIES

Subtitle A—Housing for the Elderly

Sec. 301. Matching grant program.

Sec. 302. Eligibility of for-profit limited partnerships.

Sec. 303. Mixed funding sources.

Sec. 304. Authority to acquire structures.

Sec. 305. Mixed-income occupancy.

Sec. 306. Use of project reserves.

Sec. 307. Commercial activities.

Sec. 308. Mixed finance pilot program.

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

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

Sec. 311. Annual HUD inventory of assisted housing designated for elderly persons.

Sec. 312. Treatment of applications.

Subtitle B—Housing for Persons With Disabilities

Sec. 321. Matching grant program.

Sec. 322. Eligibility of for-profit limited partnerships.

Sec. 323. Mixed funding sources.

Sec. 324. Tenant-based assistance.

Sec. 325. Use of project reserves.

Sec. 326. Commercial activities.

Subtitle C—Other Provisions

Sec. 341. Service coordinators.

TITLE IV—PRESERVATION OF AFFORDABLE HOUSING STOCK

Sec. 401. Matching grant program for affordable housing preservation.

Sec. 402. Assistance for nonprofit purchasers preserving affordable housing.

Sec. 403. Section 236 assistance.

Sec. 404. Preservation projects.

TITLE V—MORTGAGE INSURANCE FOR HEALTH CARE FACILITIES

AND HOME EQUITY CONVERSION MORTGAGES

Sec. 501. Rehabilitation of existing hospitals, nursing homes, and other facilities.

Sec. 502. New integrated service facilities.
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Sec. 503. Hospitals and hospital-based integrated service facilities.

Sec. 504. Home equity conversion mortgages.

1 SEC. 2. REGULATIONS.

2 The Secretary of Housing and Urban Development

3 (referred to in this Act as the ‘‘Secretary’’) shall issue any

4 regulations to carry out this Act and the amendments

5 made by this Act that the Secretary determines may or

6 will affect tenants of federally assisted housing only after

7 notice and opportunity for public comment in accordance

8 with the procedure under section 553 of title 5, United

9 States Code, applicable to substantive rules (notwith10 standing subsections (a)(2), (b)(B), and (d)(3) of such

11 section). Notice of such proposed rulemaking shall be pro12 vided by publication in the Federal Register. In issuing

13 such regulations, the Secretary shall take such actions as

14 may be necessary to ensure that such tenants are notified

15 of, and provided an opportunity to participate in, the rule16 making, as required by such section 553.

17 SEC. 3. EFFECTIVE DATE.

18 (a) IN GENERAL.—The provisions of this Act and the

19 amendments made by this Act are effective as of the date

20 of enactment of this Act, unless such provisions or amend21 ments specifically provide for effectiveness or applicability

22 upon another date certain.

23 (b) EFFECT OF REGULATORY AUTHORITY.—Any au24 thority in this Act or the amendments made by this Act
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1 to issue regulations, and any specific requirement to issue

2 regulations by a date certain, may not be construed to af3 fect the effectiveness or applicability of the provisions of

4 this Act or the amendments made by this Act under such

5 provisions and amendments and subsection (a) of this sec6 tion.

7 TITLE I—REFINANCING FOR

8 SECTION 202 SUPPORTIVE

9 HOUSING FOR THE ELDERLY

10 SEC. 101. PREPAYMENT AND REFINANCING.

11 (a) APPROVAL OF PREPAYMENT OF DEBT.—Upon

12 request of the project sponsor of a project assisted with

13 a loan under section 202 of the Housing Act of 1959 (as

14 in effect before the enactment of the Cranston-Gonzalez

15 National Affordable Housing Act), the Secretary shall ap16 prove the prepayment of any indebtedness to the Secretary

17 relating to any remaining principal and interest under the

18 loan as part of a prepayment plan under which—

19 (1) the project sponsor agrees to operate the

20 project until the maturity date of the original loan

21 under terms at least as advantageous to existing and

22 future tenants as the terms required by the original

23 loan agreement or any rental assistance payments

24 contract under section 8 of the United States Hous25 ing Act of 1937 (or any other rental housing assist-
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1 ance programs of the Department of Housing and

2 Urban Development, including the rent supplement

3 program under section 101 of the Housing and

4 Urban Development Act of 1965 (12 U.S.C. 1701s))

5 relating to the project; and

6 (2) the prepayment may involve refinancing of

7 the loan if such refinancing results in a lower inter8 est rate on the principal of the loan for the project

9 and in reductions in debt service related to such

10 loan.

11 (b) SOURCES OF REFINANCING.—In the case of pre12 payment under this section involving refinancing, the

13 project sponsor may refinance the project through any

14 third party source, including financing by State and local

15 housing finance agencies, use of tax-exempt bonds, multi16 family mortgage insurance under the National Housing

17 Act, reinsurance, or other credit enhancements, including

18 risk sharing as provided under section 542 of the Housing

19 and Community Development Act of 1992 (12 U.S.C.

20 1707 note). For purposes of underwriting a loan insured

21 under the National Housing Act, the Secretary may as22 sume that any section 8 rental assistance contract relating

23 to a project will be renewed for the term of such loan.

24 (c) USE OF UNEXPENDED AMOUNTS.—Upon execu25 tion of the refinancing for a project pursuant to this sec-
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1 tion, the Secretary shall make available at least 50 percent

2 of the annual savings resulting from reduced section 8 or

3 other rental housing assistance contracts in a manner that

4 is advantageous to the tenants, including—

5 (1) not more than 15 percent of the cost of in6 creasing the availability or provision of supportive

7 services, which may include the financing of service

8 coordinators and congregate services;

9 (2) rehabilitation, modernization, or retrofitting

10 of structures, common areas, or individual dwelling

11 units;

12 (3) construction of an addition or other facility

13 in the project, including assisted living facilities (or,

14 upon the approval of the Secretary, facilities located

15 in the community where the project sponsor refi16 nances a project under this section, or pools shared

17 resources from more than 1 such project); or

18 (4) rent reduction of unassisted tenants resid19 ing in the project according to a pro rata allocation

20 of shared savings resulting from the refinancing.

21 (d) USE OF CERTAIN PROJECT FUNDS.—The Sec22 retary shall allow a project sponsor that is prepaying and

23 refinancing a project under this section—

24 (1) to use any residual receipts held for that

25 project in excess of $500 per individual dwelling unit
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1 for not more than 15 percent of the cost of activities

2 designed to increase the availability or provision of

3 supportive services; and

4 (2) to use any reserves for replacement in ex5 cess of $1,000 per individual dwelling unit for activi6 ties described in paragraphs (2) and (3) of sub7 section (c).

8 (e) BUDGET ACT COMPLIANCE.—This section shall

9 be effective only to extent or in such amounts that are

10 provided in advance in appropriation Acts.

11 TITLE II—AUTHORIZATION OF

12 APPROPRIATIONS FOR SUP13 PORTIVE HOUSING FOR THE

14 ELDERLY AND PERSONS WITH

15 DISABILITIES

16 SEC. 201. SUPPORTIVE HOUSING FOR ELDERLY PERSONS.

17 Section 202 of the Housing Act of 1959 (12 U.S.C.

18 1701q) is amended by adding at the end the following:

19 ‘‘(m) AUTHORIZATION OF APPROPRIATIONS.—There

20 is authorized to be appropriated for providing assistance

21 under this section $700,000,000 for fiscal year 2001 and

22 such sums as may be necessary for each of fiscal years

23 2002, 2003, and 2004. Of the amount provided in appro24 priation Acts for assistance under this section in each such

25 fiscal year, 5 percent shall be available only for providing
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1 assistance in accordance with the requirements under sub2 section (c)(4) (relating to matching funds), except that if

3 there are insufficient eligible applicants for such assist4 ance, any amount remaining shall be used for assistance

5 under this section.’’.

6 SEC. 202. SUPPORTIVE HOUSING FOR PERSONS WITH DIS7 ABILITIES.

8 Section 811 of the Cranston-Gonzalez National Af9 fordable Housing Act (42 U.S.C. 8013) is amended by

10 striking subsection (m) and inserting the following:

11 ‘‘(m) AUTHORIZATION OF APPROPRIATIONS.—There

12 is authorized to be appropriated for providing assistance

13 under this section $225,000,000 for fiscal year 2001 and

14 such sums as may be necessary for each of fiscal years

15 2002, 2003, and 2004. Of the amount provided in appro16 priation Acts for assistance under this section in each such

17 fiscal year, 5 percent shall be available only for providing

18 assistance in accordance with the requirements under sub19 section (d)(5) (relating to matching funds), except that if

20 there are insufficient eligible applicants for such assist21 ance, any amount remaining shall be used for assistance

22 under this section.’’.
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1 SEC. 203. SERVICE COORDINATORS AND CONGREGATE

2 SERVICES FOR ELDERLY AND DISABLED

3 HOUSING.

4 There is authorized to be appropriated to the Sec5 retary $50,000,000 for fiscal year 2001, and such sums

6 as may be necessary for each of fiscal years 2002, 2003,

7 and 2004, for the following purposes:

8 (1) GRANTS FOR SERVICE COORDINATORS FOR

9 CERTAIN FEDERALLY ASSISTED MULTIFAMILY HOUS10 ING.—For grants under section 676 of the Housing

11 and Community Development Act of 1992 (42

12 U.S.C. 13632) for providing service coordinators.

13 (2) CONGREGATE SERVICES FOR FEDERALLY

14 ASSISTED HOUSING.—For contracts under section

15 802 of the Cranston-Gonzalez National Affordable

16 Housing Act (42 U.S.C. 8011) to provide congregate

17 services programs for eligible residents of eligible

18 housing projects under subparagraphs (B) through

19 (D) of subsection (k)(6) of such section.
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1 TITLE III—EXPANDING HOUSING

2 OPPORTUNITIES FOR THE EL3 DERLY AND PERSONS WITH

4 DISABILITIES

5 Subtitle A—Housing for the Elderly

6 SEC. 301. MATCHING GRANT PROGRAM.

7 Section 202 of the Housing Act of 1959 (12 U.S.C.

8 1701q) is amended—

9 (1) in subsection (b), in the second sentence, by

10 inserting ‘‘or through matching grants under sub11 section (c)(4)’’ after ‘‘subsection (c)(1)’’; and

12 (2) in subsection (c), by adding at the end the

13 following:

14 ‘‘(4) MATCHING GRANTS.—

15 ‘‘(A) IN GENERAL.—

16 ‘‘(i) 15 PERCENT MINIMUM.—

17 Amounts made available for assistance

18 under this paragraph shall be used only for

19 capital advances in accordance with para20 graph (1), except that the Secretary shall

21 require that, as a condition of providing

22 assistance under this paragraph for a

23 project, the applicant for assistance shall

24 supplement the assistance with amounts

25 from sources other than this section in an
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1 amount that is not less than 15 percent of

2 the amount of assistance provided pursu3 ant to this paragraph for the project.

4 ‘‘(ii) PREFERENCE.—In providing as5 sistance under this paragraph, the Sec6 retary shall take into consideration the de7 gree to which the applicant will supplement

8 that assistance with amounts from sources

9 other than this section and, all other fac10 tors being equal, shall give preference to

11 applicants whose supplemental assistance

12 is equal to the highest percentage of the

13 amount of assistance provided pursuant to

14 this paragraph for the project.

15 ‘‘(B) REQUIREMENT FOR NON-FEDERAL

16 FUNDS.—Not less than 50 percent of supple17 mental amounts provided for a project pursuant

18 to subparagraph (A) shall be from non-Federal

19 sources. Such supplemental amounts may in20 clude the value of any in-kind contributions, in21 cluding donated land, structures, equipment,

22 and other contributions as the Secretary con23 siders appropriate, but only if the existence of

24 such in-kind contributions results in the con25 struction of more dwelling units than would
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1 have been constructed absent such contribu2 tions.

3 ‘‘(C) INCOME ELIGIBILITY.—Notwith4 standing any other provision of this section, the

5 Secretary shall provide that, in a project as6 sisted under this paragraph, a number of dwell7 ing units may be made available for occupancy

8 by elderly persons who are not very low-income

9 persons in a number such that the ratio that

10 the number of dwelling units in the project so

11 occupied bears to the total number of units in

12 the project does not exceed the ratio that the

13 amount from non-Federal sources provided for

14 the project pursuant to this paragraph bears to

15 the sum of the capital advances provided for the

16 project under this paragraph and all supple17 mental amounts for the project provided pursu18 ant to this paragraph.’’.

19 SEC. 302. ELIGIBILITY OF FOR-PROFIT LIMITED PARTNER20 SHIPS.

21 Section 202(k)(4) of the Housing Act of 1959 (12

22 U.S.C. 1701q(k)(4)) is amended by inserting after sub23 paragraph (C) the following:

24 ‘‘Such term includes a for-profit limited partnership

25 the sole general partner of which is an organization
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1 meeting the requirements under subparagraphs (A),

2 (B), and (C), or a corporation wholly owned and

3 controlled by an organization meeting the require4 ments under subparagraphs (A), (B), and (C).’’.

5 SEC. 303. MIXED FUNDING SOURCES.

6 Section 202(h)(6) of the Housing Act of 1959 (12

7 U.S.C. 1701q(h)(6)) is amended by striking ‘‘non-Federal

8 sources’’ and inserting ‘‘sources other than this section’’.

9 SEC. 304. AUTHORITY TO ACQUIRE STRUCTURES.

10 Section 202 of the Housing Act of 1959 (12 U.S.C.

11 1701q) is amended—

12 (1) in subsection (b), by striking ‘‘from the

13 Resolution Trust Corporation’’; and

14 (2) in subsection (h)(2)—

15 (A) in the paragraph heading, by striking

16 ‘‘RTC PROPERTIES’’ and inserting ‘‘ACQUISI17 TION’’; and

18 (B) by striking ‘‘from the Resolution’’ and

19 all that follows through ‘‘Insurance Act’’.

20 SEC. 305. MIXED-INCOME OCCUPANCY.

21 (a) IN GENERAL.—The first sentence of section

22 202(i)(1) of the Housing Act of 1959 (12 U.S.C.

23 1701q(i)(1)) is amended by striking ‘‘and (B)’’ and insert24 ing the following: ‘‘(B) notwithstanding subparagraph (A)

25 and in the case only of a supportive housing project for
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1 the elderly that has a high vacancy level (as defined by

2 the Secretary, except that such term shall not include va3 cancy upon the initial availability of units in a building),

4 consistent with the purpose of improving housing opportu5 nities for very low- and low-income elderly persons; and

6 (C).’’.

7 (b) AVAILABILITY OF UNITS.—Section 202(i) of the

8 Housing Act of 1959 (12 U.S.C. 1701q(i)) is amended by

9 adding at the end the following:

10 ‘‘(3) AVAILABILITY OF UNITS.—In the case of

11 a supportive housing project described in paragraph

12 (1)(B) that has a vacant dwelling unit, an owner

13 may not make a dwelling unit available for occu14 pancy by, nor make any commitment to provide oc15 cupancy in the unit to—

16 ‘‘(A) a low-income family that is not a very

17 low-income family unless each eligible very low18 income family that has applied for occupancy in

19 the project has been offered an opportunity to

20 accept occupancy in a unit in the project; and

21 ‘‘(B) a low-income elderly person who is

22 not a very low-income elderly person, unless the

23 owner certifies to the Secretary that the owner

24 has engaged in affirmative marketing and out25 reach to very low-income elderly persons.’’.
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1 (c) CONFORMING AMENDMENTS.—Section 202 of the

2 Housing Act of 1959 (12 U.S.C. 1701q) is amended—

3 (1) in subsection (c)—

4 (A) in paragraph (1), by inserting before

5 ‘‘in accordance with this section’’ the following:

6 ‘‘, and for low-income elderly persons to the ex7 tent such occupancy is made available pursuant

8 to subsection (i)(1)(B),’’;

9 (B) in the first sentence of paragraph (2),

10 by inserting after ‘‘elderly persons’’ the fol11 lowing: ‘‘or by low-income elderly persons (to

12 the extent such occupancy is made available

13 pursuant to subsection (i)(1)(B))’’; and

14 (C) in paragraph (3), by inserting after

15 ‘‘very low-income person’’ the following: ‘‘or a

16 low-income person (to the extent such occu17 pancy is made available pursuant to subsection

18 (i)(1)(B))’’;

19 (2) in subsection (d)(1), by inserting after ‘‘el20 derly persons’’ the following: ‘‘, and low-income el21 derly persons to the extent such occupancy is made

22 available pursuant to subsection (i)(1)(B),’’; and

23 (3) in subsection (k)—
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1 (A) by redesignating paragraphs (3)

2 through (8) as paragraphs (4) through (9), re3 spectively; and

4 (B) by inserting after paragraph (2) the

5 following:

6 ‘‘(3) LOW-INCOME.—The term ‘low-income’ has

7 the meaning given the term ‘low-income families’

8 under section 3(b)(2) of the United States Housing

9 Act of 1937 (42 U.S.C. 1437a(b)(2)).’’.

10 SEC. 306. USE OF PROJECT RESERVES.

11 Section 202(j) of the Housing Act of 1959 (12 U.S.C.

12 1701q(j)) is amended by adding at the end the following:

13 ‘‘(8) USE OF PROJECT RESERVES.—Amounts

14 for project reserves for a project assisted under this

15 section may be used for costs, subject to reasonable

16 limitations as the Secretary determines appropriate,

17 for reducing the number of dwelling units in the

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

19 the Secretary to ensure that the use is designed to

20 retrofit units that are currently obsolete or unmar21 ketable.’’.

22 SEC. 307. COMMERCIAL ACTIVITIES.

23 Section 202(h)(1) of the Housing Act of 1959 (12

24 U.S.C. 1701q(h)(1)) is amended by adding at the end the

25 following: ‘‘Neither this section nor any other provision of
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1 law may be construed as prohibiting or preventing the lo2 cation and operation, in a project assisted under this sec3 tion, of commercial facilities for the benefit of residents

4 of the project and the community in which the project is

5 located, except that assistance made available under this

6 section may not be used to subsidize any such commercial

7 facility.’’.

8 SEC. 308. MIXED FINANCE PILOT PROGRAM.

9 (a) AUTHORITY.—The Secretary shall carry out a

10 pilot program under this section to determine the effec11 tiveness and feasibility of providing assistance under sec12 tion 202 of the Housing Act of 1959 (12 U.S.C. 1701q)

13 for housing projects that are used both for supportive

14 housing for the elderly and for other types of housing,

15 which may include market rate housing.

16 (b) SCOPE.—Under the pilot program the Secretary

17 shall provide, to the extent that sufficient approvable ap18 plications for such assistance are received, assistance in

19 the manner provided under subsection (d) for not more

20 than 5 housing projects.

21 (c) MIXED USE.—The Secretary shall, for a project

22 to be assisted under the pilot program—

23 (1) require that a minimum number of the

24 dwelling units in the project be reserved for use in

25 accordance with, and subject to, the requirements
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1 applicable to units assisted under section 202 of the

2 Housing Act of 1959, such that the ratio that the

3 number of dwelling units in the project so reserved

4 bears to the total number of units in the project is

5 not less than the ratio that the amount of assistance

6 from such section 202 used for the project pursuant

7 to subsection (d) bears to the total amount of assist8 ance provided for the project under this section; and

9 (2) provide that the remainder of the dwelling

10 units in the project may be used for assistance to

11 persons who are not very low-income.

12 (d) FINANCING.—The Secretary may use amounts

13 provided for assistance under section 202 of the Housing

14 Act of 1959 for assistance under the pilot program for

15 capital advances in accordance with subsection (c)(1) of

16 such section and project rental assistance in accordance

17 with subsection (c)(2) of such section, only for dwelling

18 units described in subsection (c)(1) of this section. Any

19 assistance provided pursuant to subsection (c)(1) of such

20 section 202 shall be provided in the form of a capital ad21 vance, subject to repayment as provided in such sub22 section, and shall not be structured as a loan. The Sec23 retary shall take such action as may be necessary to en24 sure that the repayment contingency under such sub25 section is enforceable for projects assisted under the pilot
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1 program and to provide for appropriate protections of the

2 interests of the Secretary in relation to other interests in

3 the projects so assisted.

4 (e) REPORT.—Not later than 2 years after assistance

5 is initially made available under the pilot program under

6 this section, the Secretary shall submit to Congress a re7 port on the results of the pilot program.

8 SEC. 309. GRANTS FOR CONVERSION OF ELDERLY HOUSING

9 TO ASSISTED LIVING FACILITIES.

10 Title II of the Housing Act of 1959 is amended by

11 inserting after section 202a (12 U.S.C. 1701q–1) the fol12 lowing:

13 ‘‘SEC. 202b. GRANTS FOR CONVERSION OF ELDERLY HOUS14 ING TO ASSISTED LIVING FACILITIES.

15 ‘‘(a) GRANT AUTHORITY.—The Secretary of Housing

16 and Urban Development may make grants in accordance

17 with this section to owners of eligible projects described

18 in subsection (b) for 1 or both of the following activities:

19 ‘‘(1) REPAIRS.—Substantial capital repairs to a

20 project that are needed to rehabilitate, modernize, or

21 retrofit aging structures, common areas, or indi22 vidual dwelling units.

23 ‘‘(2) CONVERSION.—Activities designed to con24 vert dwelling units in the eligible project to assisted

25 living facilities for elderly persons.
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1 ‘‘(b) ELIGIBLE PROJECTS.—

2 ‘‘(1) IN GENERAL.—An eligible project de3 scribed in this subsection is a multifamily housing

4 project that is—

5 ‘‘(A) described in subparagraph (B), (C),

6 (D), (E), (F), or (G) of section 683(2) of the

7 Housing and Community Development Act of

8 1992 (42 U.S.C. 13641(2)), or (B) only to the

9 extent amounts of the Department of Agri10 culture are made available to the Secretary of

11 Housing and Urban Development for such

12 grants under this section for such projects, sub13 ject to a loan made or insured under section

14 515 of the Housing Act of 1949 (42 U.S.C.

15 1485);

16 ‘‘(B) owned by a private nonprofit organi17 zation (as such term is defined in section 202);

18 and

19 ‘‘(C) designated primarily for occupancy by

20 elderly persons.

21 ‘‘(2) UNUSED OR UNDERUTILIZED COMMERCIAL

22 PROPERTY.—Notwithstanding any other provision of

23 this subsection or this section, an unused or under24 utilized commercial property may be considered an

25 eligible project under this subsection, except that the
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1 Secretary may not provide grants under this section

2 for more than 3 such properties. For any such

3 projects, any reference under this section to dwelling

4 units shall be considered to refer to the premises of

5 such properties.

6 ‘‘(c) APPLICATIONS.—Applications for grants under

7 this section shall be submitted to the Secretary in accord8 ance with such procedures as the Secretary shall establish.

9 Such applications shall contain—

10 ‘‘(1) a description of the substantial capital re11 pairs or the proposed conversion activities for which

12 a grant under this section is requested;

13 ‘‘(2) the amount of the grant requested to com14 plete the substantial capital repairs or conversion ac15 tivities;

16 ‘‘(3) a description of the resources that are ex17 pected to be made available, if any, in conjunction

18 with the grant under this section; and

19 ‘‘(4) such other information or certifications

20 that the Secretary determines to be necessary or ap21 propriate.

22 ‘‘(d) FUNDING FOR SERVICES.—The Secretary may

23 not make a grant under this section for conversion activi24 ties unless the application contains sufficient evidence, in

25 the determination of the Secretary, of firm commitments
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1 for the funding of services to be provided in the assisted

2 living facility, which may be provided by third parties.

3 ‘‘(e) SELECTION CRITERIA.—The Secretary shall se4 lect applications for grants under this section based upon

5 selection criteria, which shall be established by the Sec6 retary and shall include—

7 ‘‘(1) in the case of a grant for substantial cap8 ital repairs, the extent to which the project to be re9 paired is in need of such repair, including such fac10 tors as the age of improvements to be repaired, and

11 the impact on the health and safety of residents of

12 failure to make such repairs;

13 ‘‘(2) in the case of a grant for conversion activi14 ties, the extent to which the conversion is likely to

15 provide assisted living facilities that are needed or

16 are expected to be needed by the categories of elder17 ly persons that the assisted living facility is intended

18 to serve, with a special emphasis on very low-income

19 elderly persons who need assistance with activities of

20 daily living;

21 ‘‘(3) the inability of the applicant to fund the

22 repairs or conversion activities from existing finan23 cial resources, as evidenced by the applicant’s finan24 cial records, including assets in the applicant’s resid-
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1 ual receipts account and reserves for replacement ac2 count;

3 ‘‘(4) the extent to which the applicant has evi4 denced community support for the repairs or conver5 sion, by such indicators as letters of support from

6 the local community for the repairs or conversion

7 and financial contributions from public and private

8 sources;

9 ‘‘(5) in the case of a grant for conversion activi10 ties, the extent to which the applicant demonstrates

11 a strong commitment to promoting the autonomy

12 and independence of the elderly persons that the as13 sisted living facility is intended to serve;

14 ‘‘(6) in the case of a grant for conversion activi15 ties, the quality, completeness, and managerial capa16 bility of providing the services which the assisted liv17 ing facility intends to provide to elderly residents,

18 especially in such areas as meals, 24-hour staffing,

19 and on-site health care; and

20 ‘‘(7) such other criteria as the Secretary deter21 mines to be appropriate to ensure that funds made

22 available under this section are used effectively.

23 ‘‘(f) DEFINITIONS.—In this section—
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1 ‘‘(1) the term ‘assisted living facility’ has the

2 meaning given such term in section 232(b) of the

3 National Housing Act (12 U.S.C. 1715w(b)); and

4 ‘‘(2) the definitions in section 202(k) shall

5 apply.

6 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There

7 is authorized to be appropriated for providing grants

8 under this section such sums as may be necessary for each

9 of fiscal years 2001, 2002, 2003, and 2004.’’.

10 SEC. 310. GRANTS FOR CONVERSION OF PUBLIC HOUSING

11 PROJECTS TO ASSISTED LIVING FACILITIES.

12 Title I of the United States Housing Act of 1937 (42

13 U.S.C. 1437 et seq.) is amended by adding at the end

14 the following:

15 ‘‘SEC. 36. GRANTS FOR CONVERSION OF PUBLIC HOUSING

16 TO ASSISTED LIVING FACILITIES.

17 ‘‘(a) GRANT AUTHORITY.—The Secretary may make

18 grants in accordance with this section to public housing

19 agencies for use for activities designed to convert dwelling

20 units in an eligible projects described in subsection (b) to

21 assisted living facilities for elderly persons.

22 ‘‘(b) ELIGIBLE PROJECTS.—An eligible project de23 scribed in this subsection is a public housing project (or

24 a portion thereof) that has been designated under section

25 7 for occupancy only by elderly persons.
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1 ‘‘(c) APPLICATIONS.—Applications for grants under

2 this section shall be submitted to the Secretary in accord3 ance with such procedures as the Secretary shall establish.

4 Such applications shall contain—

5 ‘‘(1) a description of the proposed conversion

6 activities for which a grant under this section is re7 quested;

8 ‘‘(2) the amount of the grant requested;

9 ‘‘(3) a description of the resources that are ex10 pected to be made available, if any, in conjunction

11 with the grant under this section; and

12 ‘‘(4) such other information or certifications

13 that the Secretary determines to be necessary or ap14 propriate.

15 ‘‘(d) FUNDING FOR SERVICES.—The Secretary may

16 not make a grant under this section unless the application

17 contains sufficient evidence, in the determination of the

18 Secretary, of firm commitments for the funding of services

19 to be provided in the assisted living facility.

20 ‘‘(e) SELECTION CRITERIA.—The Secretary shall se21 lect applications for grants under this section based upon

22 selection criteria, which shall be established by the Sec23 retary and shall include—

24 ‘‘(1) the extent to which the conversion is likely

25 to provide assisted living facilities that are needed or
26

•S 2733 IS

1 are expected to be needed by the categories of elder2 ly persons that the assisted living facility is intended

3 to serve;

4 ‘‘(2) the inability of the public housing agency

5 to fund the conversion activities from existing finan6 cial resources, as evidenced by the agency’s financial

7 records;

8 ‘‘(3) the extent to which the agency has evi9 denced community support for the conversion, by

10 such indicators as letters of support from the local

11 community for the conversion and financial contribu12 tions from public and private sources;

13 ‘‘(4) extent to which the applicant demonstrates

14 a strong commitment to promoting the autonomy

15 and independence of the elderly persons that the as16 sisted living facility is intended to serve;

17 ‘‘(5) the quality, completeness, and managerial

18 capability of providing the services which the as19 sisted living facility intends to provide to elderly

20 residents, especially in such areas as meals, 24-hour

21 staffing, and on-site health care; and

22 ‘‘(6) such other criteria as the Secretary deter23 mines to be appropriate to ensure that funds made

24 available under this section are used effectively.
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•S 2733 IS

1 ‘‘(f) DEFINITION.—In this section, the term ‘assisted

2 living facility’ has the meaning given such term in section

3 232(b) of the National Housing Act (12 U.S.C.

4 1715w(b)).

5 ‘‘(g) AUTHORIZATION OF APPROPRIATIONS.—There

6 is authorized to be appropriated for providing grants

7 under this section such sums as may be necessary for each

8 of fiscal years 2001, 2002, 2003, and 2004.’’.

9 SEC. 311. ANNUAL HUD INVENTORY OF ASSISTED HOUSING

10 DESIGNATED FOR ELDERLY PERSONS.

11 Subtitle D of title VI of the Housing and Community

12 Development Act of 1992 (42 U.S.C. 13611 et seq.) is

13 amended by adding at the end the following:

14 ‘‘SEC. 662. ANNUAL INVENTORY OF ASSISTED HOUSING

15 DESIGNATED FOR ELDERLY PERSONS.

16 ‘‘(a) IN GENERAL.—The Secretary shall establish

17 and maintain, and on an annual basis shall update and

18 publish, an inventory of housing that—

19 ‘‘(1) is assisted under a program of the Depart20 ment of Housing and Urban Development, including

21 all federally assisted housing; and

22 ‘‘(2) is designated, in whole or in part, for occu23 pancy by elderly families or disabled families, or

24 both.
28

•S 2733 IS

1 ‘‘(b) CONTENTS.—The inventory required under this

2 section shall identify housing described in subsection (a)

3 and the number of dwelling units in such housing that—

4 ‘‘(1) are in projects designated for occupancy

5 only by elderly families;

6 ‘‘(2) are in projects designated for occupancy

7 only by disabled families;

8 ‘‘(3) contain special features or modifications

9 designed to accommodate persons with disabilities

10 and are in projects designated for occupancy only by

11 disabled families;

12 ‘‘(4) are in projects for which a specific per13 centage or number of the dwelling units are des14 ignated for occupancy only by elderly families;

15 ‘‘(5) are in projects for which a specific per16 centage or number of the dwelling units are des17 ignated for occupancy only by disabled families; and

18 ‘‘(6) are in projects designed for occupancy only

19 by both elderly or disabled families.

20 ‘‘(c) PUBLICATION.—The Secretary shall annually

21 publish the inventory required under this section in the

22 Federal Register and shall make the inventory available

23 to the public by posting on a World Wide Web site of the

24 Department.’’.
29

•S 2733 IS

1 SEC. 312. TREATMENT OF APPLICATIONS.

2 Notwithstanding any other provision of law or any

3 regulation of the Secretary, in the case of any denial of

4 an application for assistance under section 202 of the

5 Housing Act of 1959 (12 U.S.C. 1701q) for failure to

6 timely provide information required by the Secretary, the

7 Secretary shall notify the applicant of the failure and pro8 vide the applicant an opportunity to show that the failure

9 was due to the failure of a third party to provide informa10 tion under the control of the third party. If the applicant

11 demonstrates, within a reasonable period of time after no12 tification of such failure, that the applicant did not have

13 such information but requested the timely provision of

14 such information by the third party, the Secretary may

15 not deny the application solely on the grounds of failure

16 to timely provide such information.

17 Subtitle B—Housing for Persons

18 With Disabilities

19 SEC. 321. MATCHING GRANT PROGRAM.

20 Section 811 of the Cranston-Gonzalez National Af21 fordable Housing Act (42 U.S.C. 8013) is amended—

22 (1) in subsection (b)(2)(A), by inserting ‘‘or

23 through matching grants under subsection (d)(5)’’

24 after ‘‘subsection (d)(1)’’; and

25 (2) in subsection (d), by adding at the end the

26 following:
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•S 2733 IS

1 ‘‘(5) MATCHING GRANTS.—

2 ‘‘(A) IN GENERAL.—

3 ‘‘(i) 15 PERCENT MINIMUM.—

4 Amounts made available for assistance

5 under this paragraph shall be used only for

6 capital advances in accordance with para7 graph (1), except that the Secretary shall

8 require that, as a condition of providing

9 assistance under this paragraph for a

10 project, the applicant for assistance shall

11 supplement the assistance with amounts

12 from sources other than this section in an

13 amount that is not less than 15 percent of

14 the amount of assistance provided pursu15 ant to this paragraph for the project.

16 ‘‘(ii) PREFERENCE.—In providing as17 sistance under this paragraph, the Sec18 retary shall take into consideration the de19 gree to which the applicant will supplement

20 that assistance with amounts from sources

21 other than this section and, all other fac22 tors being equal, shall give preference to

23 applicants whose supplemental assistance

24 is equal to the highest percentage of the
31

•S 2733 IS

1 amount of assistance provided pursuant to

2 this paragraph for the project.

3 ‘‘(B) REQUIREMENT FOR NON-FEDERAL

4 FUNDS.—Not less than 50 percent of supple5 mental amounts provided for a project pursuant

6 to subparagraph (A) shall be from non-Federal

7 sources. Such supplemental amounts may in8 clude the value of any in-kind contributions, in9 cluding donated land, structures, equipment,

10 and other contributions as the Secretary con11 siders appropriate, but only if the existence of

12 such in-kind contributions results in the con13 struction of more dwelling units than would

14 have been constructed absent such contribu15 tions.

16 ‘‘(C) INCOME ELIGIBILITY.—Notwith17 standing any other provision of this section, the

18 Secretary shall provide that, in a project as19 sisted under this paragraph, a number of dwell20 ing units may be made available for occupancy

21 by persons with disabilities who are not very

22 low-income persons in a number such that the

23 ration that the number of dwelling units in the

24 project so occupied bears to the total number of

25 units in the project does not exceed the ratio
32

•S 2733 IS

1 that the amount from non-Federal sources pro2 vided for the project pursuant to this paragraph

3 bears to the sum of the capital advances pro4 vided for the project under this paragraph and

5 all supplemental amounts for the project pro6 vided pursuant to this paragraph.’’.

7 SEC. 322. ELIGIBILITY OF FOR-PROFIT LIMITED PARTNER8 SHIPS.

9 Section 811(k)(6) of the Housing Act of 1959 (42

10 U.S.C. 8013(k)(6)) is amended by inserting after subpara11 graph (D) the following:

12 ‘‘Such term includes a for-profit limited partnership

13 the sole general partner of which is an organization

14 meeting the requirements under subparagraphs (A),

15 (B), (C), and (D) or a corporation wholly owned and

16 controlled by an organization meeting the require17 ments under subparagraphs (A), (B), (C), and

18 (D).’’.

19 SEC. 323. MIXED FUNDING SOURCES.

20 Section 811(h)(5) of the Cranston-Gonzalez National

21 Affordable Housing Act (42 U.S.C. 8013(h)(5)) is amend22 ed by striking ‘‘non-Federal sources’’ and inserting

23 ‘‘sources other than this section’’.
33

•S 2733 IS

1 SEC. 324. TENANT-BASED ASSISTANCE.

2 Section 811 of the Cranston-Gonzalez National Af3 fordable Housing Act (42 U.S.C. 8013) is amended—

4 (1) in subsection (d), by striking paragraph (4)

5 and inserting the following:

6 ‘‘(4) TENANT-BASED RENTAL ASSISTANCE.—

7 ‘‘(A) ADMINISTERING ENTITIES.—Tenant8 based rental assistance provided under sub9 section (b)(1) may be provided only through a

10 public housing agency that has submitted and

11 had approved an plan under section 7(d) of the

12 United States Housing Act of 1937 (42 U.S.C.

13 1437e(d)) that provides for such assistance, or

14 through a private nonprofit organization. A

15 public housing agency shall be eligible to apply

16 under this section only for the purposes of pro17 viding such tenant-based rental assistance.

18 ‘‘(B) PROGRAM RULES.—Tenant-based

19 rental assistance under subsection (b)(1) shall

20 be made available to eligible persons with dis21 abilities and administered under the same rules

22 that govern tenant-based rental assistance made

23 available under section 8 of the United States

24 Housing Act of 1937, except that the Secretary

25 may waive or modify such rules, but only to the

26 extent necessary to provide for administering
34

•S 2733 IS

1 such assistance under subsection (b)(1) through

2 private nonprofit organizations rather than

3 through public housing agencies.

4 ‘‘(C) ALLOCATION OF ASSISTANCE.—In de5 termining the amount of assistance provided

6 under subsection (b)(1) for a private nonprofit

7 organization or public housing agency, the Sec8 retary shall consider the needs and capabilities

9 of the organization or agency, in the case of a

10 public housing agency, as described in the plan

11 for the agency under section 7 of the United

12 States Housing Act of 1937.’’; and

13 (2) in subsection (l)(1)—

14 (A) by striking ‘‘subsection (b)’’ and in15 serting ‘‘subsection (b)(2)’’;

16 (B) by striking the last comma and all

17 that follows through ‘‘subsection (n)’’; and

18 (C) by adding at the end the following:

19 ‘‘Notwithstanding any other provision of this

20 section, the Secretary may use not more than

21 25 percent of the total amounts made available

22 for assistance under this section for any fiscal

23 year for tenant-based rental assistance under

24 subsection (b)(1) for persons with disabilities,

25 and no authority of the Secretary to waive pro-
35

•S 2733 IS

1 visions of this section may be used to alter the

2 percentage limitation under this sentence.’’.

3 SEC. 325. USE OF PROJECT RESERVES.

4 Section 811(j) of the Cranston-Gonzalez National Af5 fordable Housing Act (42 U.S.C. 8013(j)) is amended by

6 adding at the end the following:

7 ‘‘(7) USE OF PROJECT RESERVES.—Amounts

8 for project reserves for a project assisted under this

9 section may be used for costs, subject to reasonable

10 limitations as the Secretary determines appropriate,

11 for reducing the number of dwelling units in the

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

13 the Secretary to ensure that the use is designed to

14 retrofit units that are currently obsolete or unmar15 ketable.’’.

16 SEC. 326. COMMERCIAL ACTIVITIES.

17 Section 811(h)(1) of the Cranston-Gonzalez National

18 Affordable Housing Act (42 U.S.C. 8013(h)(1)) is amend19 ed by adding at the end the following: ‘‘Neither this sec20 tion nor any other provision of law may be construed as

21 prohibiting or preventing the location and operation, in a

22 project assisted under this section, of commercial facilities

23 for the benefit of residents of the project and the commu24 nity in which the project is located, except that assistance
36

•S 2733 IS

1 made available under this section may not be used to sub2 sidize any such commercial facility.’’.

3 Subtitle C—Other Provisions

4 SEC. 341. SERVICE COORDINATORS.

5 (a) INCREASED FLEXIBILITY FOR USE OF SERVICE

6 COORDINATORS IN CERTAIN FEDERALLY ASSISTED

7 HOUSING.—Section 676 of the Housing and Community

8 Development Act of 1992 (42 U.S.C. 13632) is

9 amended—

10 (1) in the section heading, by striking ‘‘MULTI11 FAMILY HOUSING ASSISTED UNDER NATIONAL

12 HOUSING ACT’’ and inserting ‘‘CERTAIN FEDER13 ALLY ASSISTED HOUSING’’;

14 (2) in subsection (a)—

15 (A) in the first sentence, by striking ‘‘(E)

16 and (F)’’ and inserting ‘‘(B), (C), (D), (E),

17 (F), and (G)’’; and

18 (B) in the last sentence—

19 (i) by striking ‘‘section 661’’ and in20 serting ‘‘section 671’’; and

21 (ii) by adding at the end the fol22 lowing: ‘‘A service coordinator funded with

23 a grant under this section for a project

24 may provide services to low-income elderly
37

•S 2733 IS

1 or disabled families living in the vicinity of

2 such project.’’;

3 (3) in subsection (d)—

4 (A) by striking ‘‘(E) or (F)’’ and inserting

5 ‘‘(B), (C), (D), (E), (F), or (G)’’; and

6 (B) by striking ‘‘section 661’’ and insert7 ing ‘‘section 671’’; and

8 (4) by striking subsection (c) and redesignating

9 subsection (d) (as amended by paragraph (3) of this

10 subsection) as subsection (c).

11 (b) REQUIREMENT TO PROVIDE SERVICE COORDINA12 TORS.—Section 671 of the Housing and Community De13 velopment Act of 1992 (42 U.S.C. 13631) is amended—

14 (1) in the first sentence of subsection (a), by

15 striking ‘‘to carry out this subtitle pursuant to the

16 amendments made by this subtitle’’ and inserting

17 the following: ‘‘for providing service coordinators

18 under this section’’;

19 (2) in subsection (d), by inserting ‘‘)’’ after

20 ‘‘section 683(2)’’; and

21 (3) by adding at the end following:

22 ‘‘(e) SERVICES FOR LOW-INCOME ELDERLY OR DIS23 ABLED FAMILIES RESIDING IN VICINITY OF CERTAIN

24 PROJECTS.—To the extent only that this section applies

25 to service coordinators for covered federally assisted hous-
38

•S 2733 IS

1 ing described in subparagraphs (B), (C), (D), (E), (F),

2 and (G) of section 683(2), any reference in this section

3 to elderly or disabled residents of a project shall be con4 strued to include low-income elderly or disabled families

5 living in the vicinity of such project.’’.

6 (c) PROTECTION AGAINST TELEMARKETING

7 FRAUD.—

8 (1) SUPPORTIVE HOUSING FOR THE ELDER9 LY.—The first sentence of section 202(g)(1) of the

10 Housing Act of 1959 (12 U.S.C. 1701q(g)(1)) is

11 amended by striking ‘‘and (F)’’ and inserting the

12 following: ‘‘(F) providing education and outreach re13 garding telemarketing fraud, in accordance with the

14 standards issued under section 671(f) of the Hous15 ing and Community Development Act of 1992 (42

16 U.S.C. 13631(f)); and (G)’’.

17 (2) OTHER FEDERALLY ASSISTED HOUSING.—

18 Section 671 of the Housing and Community Devel19 opment Act of 1992 (42 U.S.C. 13631), as amended

20 by subsection (b) of this section, is further

21 amended—

22 (A) in the first sentence of subsection (c),

23 by inserting after ‘‘response,’’ the following:

24 ‘‘education and outreach regarding tele-
39

•S 2733 IS

1 marketing fraud in accordance with the stand2 ards issued under subsection (f),’’; and

3 (B) by adding at the end the following:

4 ‘‘(f) PROTECTION AGAINST TELEMARKETING

5 FRAUD.—

6 ‘‘(1) IN GENERAL.—The Secretary, in coordina7 tion with the Secretary of Health and Human Serv8 ices, shall establish standards for service coordina9 tors in federally assisted housing who are providing

10 education and outreach to elderly persons residing in

11 such housing regarding telemarketing fraud. The

12 standards shall be designed to ensure that such edu13 cation and outreach informs such elderly persons of

14 the dangers of telemarketing fraud and facilitates

15 the investigation and prosecution of telemarketers

16 engaging in fraud against such residents.

17 ‘‘(2) CONTENTS.—The standards established

18 under this subsection shall require that any such

19 education and outreach be provided in a manner

20 that—

21 ‘‘(A) informs such residents of—

22 ‘‘(i) the prevalence of telemarketing

23 fraud targeted against elderly persons;

24 ‘‘(ii) how telemarketing fraud works;
40

•S 2733 IS

1 ‘‘(iii) how to identify telemarketing

2 fraud;

3 ‘‘(iv) how to protect themselves

4 against telemarketing fraud, including an

5 explanation of the dangers of providing

6 bank account, credit card, or other finan7 cial or personal information over the tele8 phone to unsolicited callers;

9 ‘‘(v) how to report suspected attempts

10 at telemarketing fraud; and

11 ‘‘(vi) their consumer protection rights

12 under Federal law;

13 ‘‘(B) provides such other information as

14 the Secretary considers necessary to protect

15 such residents against fraudulent telemarketing;

16 and

17 ‘‘(C) disseminates the information provided

18 by appropriate means, and in determining such

19 appropriate means, the Secretary shall consider

20 on-site presentations at federally assisted hous21 ing, public service announcements, a printed

22 manual or pamphlet, an Internet website, and

23 telephone outreach to residents whose names

24 appear on ‘mooch lists’ confiscated from fraud25 ulent telemarketers.’’.
41

•S 2733 IS

1 TITLE IV—PRESERVATION OF

2 AFFORDABLE HOUSING STOCK

3 SEC. 401. MATCHING GRANT PROGRAM FOR AFFORDABLE

4 HOUSING PRESERVATION.

5 (a) FINDINGS AND PURPOSES.—

6 (1) FINDINGS.—Congress finds that—

7 (A) availability of low-income housing rent8 al units has declined nationwide in the last sev9 eral years;

10 (B) as rents for low-income housing in11 crease and the development of new units of af12 fordable housing decreases, there are fewer pri13 vately owned, federally assisted affordable hous14 ing units available to low-income individuals in

15 need;

16 (C) the demand for affordable housing far

17 exceeds the supply of such housing, as evi18 denced by recent studies; and

19 (D) the efforts of nonprofit organizations

20 have significantly preserved and expanded ac21 cess to low-income housing.

22 (2) PURPOSES.—The purposes of this section

23 are—

24 (A) to continue the partnerships among

25 the Federal Government, State and local gov-
42

•S 2733 IS

1 ernments, nonprofit organizations, and the pri2 vate sector in operating and assisting housing

3 that is affordable to low-income persons and

4 families;

5 (B) to promote the preservation of afford6 able housing units by providing matching

7 grants to States and localities that have devel8 oped and funded programs for the preservation

9 of privately owned housing that is affordable to

10 low-income families and persons; and

11 (C) to minimize the involuntary displace12 ment of tenants who are currently residing in

13 such housing, many of whom are elderly or dis14 abled persons and families with children.

15 (b) DEFINITIONS.—In this section:

16 (1) CAPITAL EXPENDITURES.—The term ‘‘cap17 ital expenditures’’ includes expenditures for acquisi18 tion and rehabilitation.

19 (2) LOW-INCOME AFFORDABILITY RESTRIC20 TIONS.—The term ‘‘low-income affordability restric21 tions’’ means, with respect to a housing project, any

22 limitations imposed by law, regulation, or regulatory

23 agreement on rents for tenants of the project, rent

24 contributions for tenants of the project, or income25 eligibility for occupancy in the project.
43

•S 2733 IS

1 (3) PROJECT-BASED ASSISTANCE.—The term

2 ‘‘project-based assistance’’ has the meaning given

3 such term in section 16(c) of the United States

4 Housing Act of 1937 (42 U.S.C. 1437n(c)), except

5 that such term includes assistance under any suc6 cessor programs to the programs referred to in such

7 section.

8 (4) SECRETARY.—The term ‘‘Secretary’’ means

9 the Secretary of Housing and Urban Development.

10 (5) STATE.—The term ‘‘State’’ means each of

11 the several States and the District of Columbia.

12 (c) AUTHORITY.—The Secretary shall, to the extent

13 amounts are made available in advance under subsection

14 (k), award grants under this section to States and local15 ities for low-income housing preservation and promotion.

16 (d) APPLICATIONS.—The Secretary shall provide for

17 States and localities (through appropriate State and local

18 agencies) to submit applications for grants under this sec19 tion. The Secretary shall require the applications to con20 tain any information and certifications necessary for the

21 Secretary to determine who is eligible to receive such a

22 grant.

23 (e) USE OF GRANTS.—

24 (1) ELIGIBLE USES.—
44

•S 2733 IS

1 (A) IN GENERAL.—Amounts from grants

2 awarded under this section may be used by

3 States and localities only for the purpose of

4 providing assistance for acquisition, rehabilita5 tion, operating costs, and capital expenditures

6 for a housing project that meets the require7 ments under paragraph (2), (3), (4), or (5).

8 (B) FACTORS FOR CONSIDERATION.—In

9 selecting projects described in subparagraph (A)

10 for assistance with amounts from a grant

11 awarded under this section, the State or locality

12 shall—

13 (i) take into consideration—

14 (I) whether the assistance will be

15 used to transfer the project to a resi16 dent-endorsed nonprofit organization;

17 (II) whether the owner of the

18 project has extended the low-income

19 affordability restrictions on the

20 project for a period of more than 15

21 years;

22 (III) the extent to which the

23 project is consistent with the com24 prehensive housing affordability strat25 egy approved in accordance with sec-
45

•S 2733 IS

1 tion 105 of the Cranston-Gonzalez

2 National Affordable Housing Act (42

3 U.S.C. 12705) for the jurisdiction in

4 which the project is located;

5 (IV) the extent to which the

6 project location provides access to

7 transportation, jobs, shopping, and

8 other similar conveniences;

9 (V) the extent to which the

10 project meets fair housing goals;

11 (VI) the extent to which the

12 project serves specific needs that are

13 not otherwise met by the local market,

14 such as housing for the elderly or dis15 abled, or families with children;

16 (VII) the extent of local govern17 ment resources provided to the

18 project; and

19 (VIII) such other factors as the

20 Secretary or the State or locality may

21 establish; and

22 (ii) States receiving funds shall ensure

23 that, to the maximum extent practicable,

24 projects in both urban and rural areas in

25 the State receive assistance.
46

•S 2733 IS

1 (2) PROJECTS WITH HUD-INSURED MORT2 GAGES.—A project meets the requirements under

3 this paragraph only if—

4 (A) the project is financed by a loan or

5 mortgage that is—

6 (i) insured or held by the Secretary

7 under section 221(d)(3) of the National

8 Housing Act (12 U.S.C. 1715l(d)(3)) and

9 receiving loan management assistance

10 under section 8 of the United States Hous11 ing Act of 1937 (42 U.S.C. 1437f) due to

12 a conversion from section 101 of the Hous13 ing and Urban Development Act of 1965

14 (12 U.S.C. 1701s);

15 (ii) insured or held by the Secretary

16 and bears interest at a rate determined

17 under the proviso of section 221(d)(5) of

18 the National Housing Act (12 U.S.C.

19 1715l(d)(5)); or

20 (iii) insured, assisted, or held by the

21 Secretary or a State or State agency under

22 section 236 of the National Housing Act

23 (12 U.S.C. 1715z–1);
47

•S 2733 IS

1 (B) the project is subject to an uncondi2 tional waiver of, with respect to the mortgage

3 referred to in subparagraph (A)—

4 (i) all rights to any prepayment of the

5 mortgage; and

6 (ii) all rights to any voluntary termi7 nation of the mortgage insurance contract

8 for the mortgage; and

9 (C) if the low-income affordability restric10 tions on the project are for less than 15 years,

11 the owner of the project has entered into bind12 ing commitments (applicable to any subsequent

13 owner) to extend those restrictions, including

14 any such restrictions imposed because of any

15 contract for project-based assistance for the

16 project, for a period of not less than 15 years

17 (beginning on the date on which assistance is

18 made available for the project by the State or

19 locality under this section).

20 (3) PROJECTS WITH SECTION 8 PROJECT-BASED

21 ASSISTANCE.—A project meets the requirements

22 under this paragraph only if—

23 (A) the project is subject to a contract for

24 project-based assistance; and
48

•S 2733 IS

1 (B) the owner of the project has entered

2 into binding commitments (applicable to any

3 subsequent owner)—

4 (i) to continue to renew such contract

5 (if offered on the same terms and condi6 tions) until the later of—

7 (I) the last day of the remaining

8 term of the mortgage; or

9 (II) the date that is 15 years

10 after the date on which assistance is

11 made available for the project by the

12 State or locality under this subsection;

13 and

14 (ii) to extend any low-income afford15 ability restrictions applicable to the project

16 in connection with such assistance.

17 (4) PROJECTS PURCHASED BY RESIDENTS.—A

18 project meets the requirements under this paragraph

19 only if the project—

20 (A) is or was eligible low-income housing

21 (as defined in section 229 of the Low-Income

22 Housing Preservation and Resident Home23 ownership Act of 1990 (42 U.S.C. 4119)) or is

24 or was a project assisted under section 613(b)
49

•S 2733 IS

1 of the Cranston-Gonzalez National Affordable

2 Housing Act (12 U.S.C. 4125(b));

3 (B) has been purchased by a resident

4 council or resident-approved nonprofit organiza5 tion for the housing or is approved by the Sec6 retary for such purchase, for conversion to

7 homeownership housing under a resident home8 ownership program meeting the requirements

9 under section 226 of such Act (12 U.S.C.

10 4116); and

11 (C) the owner of the project has entered

12 into binding commitments (applicable to any

13 subsequent owner) to extend such assistance for

14 not less than 15 years (beginning on the date

15 on which assistance is made available for the

16 project by the State or locality under this sec17 tion) and to extend any low-income affordability

18 restrictions applicable to the project in connec19 tion with such assistance.

20 (5) RURAL RENTAL ASSISTANCE PROJECTS.—A

21 project meets the requirements of this paragraph

22 only if—

23 (A) the project is a rural rental housing

24 project financed under section 515 of the Hous25 ing Act of 1949 (42 U.S.C. 1485); and
50

•S 2733 IS

1 (B) the restriction on the use of the

2 project (as required under section 502 of the

3 Housing Act of 1949 (42 U.S.C. 1472)) will ex4 pire not later than 12 months after the date on

5 which assistance is made available for the

6 project by the State or locality under this sub7 section.

8 (f) AMOUNT OF STATE AND LOCAL GRANTS.—

9 (1) IN GENERAL.—Subject to subsection (g), in

10 each fiscal year, the Secretary shall award to each

11 State and locality approved for a grant under this

12 section a grant in an amount based upon the propor13 tion of such State’s or locality’s need for assistance

14 under this section (as determined by the Secretary

15 in accordance with paragraph (2)) to the aggregate

16 need among all States and localities approved for

17 such assistance for such fiscal year.

18 (2) DETERMINATION OF NEED.—In deter19 mining the proportion of a State’s or locality’s need

20 under paragraph (1), the Secretary shall consider—

21 (A) the number of units in projects in the

22 State or locality that are eligible for assistance

23 under section 6 that, due to market conditions

24 or other factors, are at risk for prepayment,
51

•S 2733 IS

1 opt-out, or otherwise at risk of being lost to the

2 inventory of affordable housing; and

3 (B) the difficulty that residents of projects

4 in the State or locality that are eligible for as5 sistance under subsection (e) would face in

6 finding adequate, available, decent, comparable,

7 and affordable housing in neighborhoods of

8 comparable quality in the local market, if those

9 projects were not assisted by the State or local10 ity under subsection (e).

11 (g) MATCHING REQUIREMENT.—

12 (1) IN GENERAL.—The Secretary may not

13 award a grant under this section to a State or local14 ity for any fiscal year in an amount that exceeds

15 twice the amount that the State or locality certifies,

16 as the Secretary shall require, that the State or lo17 cality will contribute for such fiscal year, or has con18 tributed since January 1, 2000, from non-Federal

19 sources for the purposes described in subsection

20 (e)(1).

21 (2) TREATMENT OF PREVIOUS CONTRIBU22 TIONS.—Any portion of amounts contributed after

23 January 1, 2000, that are counted for purposes of

24 meeting the requirement under paragraph (1) for a
52

•S 2733 IS

1 fiscal year may not be counted for such purposes for

2 any subsequent fiscal year.

3 (3) TREATMENT OF TAX INCENTIVES.—Fifty

4 percent of the funds used for the project that are al5 locable to tax credits allocated under section 42 of

6 the Internal Revenue Code of 1986, revenue from

7 mortgage revenue bonds issued under section 143 of

8 such Code, or proceeds from the sale of tax-exempt

9 bonds by any State or local government entity shall

10 be considered non-Federal sources for purposes of

11 this subsection.

12 (h) TREATMENT OF SUBSIDY LAYERING REQUIRE13 MENTS.—Neither subsection (g) nor any other provision

14 of this section may be construed to prevent the use of tax

15 credits allocated under section 42 of the Internal Revenue

16 Code of 1986 in connection with housing assisted with

17 amounts from a grant awarded under this section, to the

18 extent that such use is in accordance with section 102(d)

19 of the Department of Housing and Urban Development

20 Reform Act of 1989 (42 U.S.C. 3545(d)) and section 911

21 of the Housing and Community Development Act of 1992

22 (42 U.S.C. 3545 note).

23 (i) REPORTS.—

24 (1) REPORTS TO SECRETARY.—Not later than

25 90 days after the last day of each fiscal year, each
53

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1 State and locality that receives a grant under this

2 section during that fiscal year shall submit to the

3 Secretary a report on the housing projects assisted

4 with amounts made available under the grant.

5 (2) REPORTS TO CONGRESS.—Based on the re6 ports submitted under paragraph (1), the Secretary

7 shall annually submit to Congress a report on the

8 grants awarded under this section during the pre9 ceding fiscal year and the housing projects assisted

10 with amounts made available under those grants.

11 (j) REGULATIONS.—Not later than 12 months after

12 the date of enactment of this Act, the Secretary shall issue

13 regulations to carry out this section.

14 (k) AUTHORIZATION OF APPROPRIATIONS.—There is

15 authorized to be appropriated for grants under this section

16 such sums as may be necessary for each of fiscal years

17 2001 through 2004.

18 SEC. 402. ASSISTANCE FOR NONPROFIT PURCHASERS PRE19 SERVING AFFORDABLE HOUSING.

20 (a) CONGRESSIONAL FINDINGS.—Congress finds

21 that—

22 (1) a substantial number of existing federally

23 assisted or federally insured multifamily properties

24 are at risk of being lost from the affordable housing
54

•S 2733 IS

1 inventory of the Nation through market rate conver2 sion, deterioration, or demolition;

3 (2) it is in the interests of the Nation to en4 courage transfer of control of such properties to

5 competent national, regional, and local nonprofit en6 tities and intermediaries whose missions involve

7 maintaining the affordability of such properties;

8 (3) such transfers may be inhibited by a short9 age of such entities that are appropriately capital10 ized; and

11 (4) the Nation would be well served by pro12 viding assistance to such entities to aid in accom13 plishing this purpose.

14 (b) GRANTS.—The Secretary may make grants, to

15 the extent amounts are made available for such grants,

16 to eligible entities under subsection (c) for use only for

17 operational, working capital, and organizational expenses

18 of such entities and activities by such entities to acquire

19 eligible affordable housing for the purpose of ensuring that

20 the housing will remain affordable, as the Secretary con21 siders appropriate, for low-income or very low-income fam22 ilies (including elderly persons).

23 (c) ELIGIBLE ENTITIES.—The Secretary shall estab24 lish standards for eligible entities under this subsection,
55

•S 2733 IS

1 which shall include requirements that to be considered an

2 eligible entity for purposes of this section an entity shall—

3 (1) be a nonprofit organization (as such term is

4 defined in 104 of the Cranston-Gonzalez National

5 Affordable Housing Act);

6 (2) have among its purposes maintaining the

7 affordability to low-income or very low-income fami8 lies of multifamily properties that are at risk of loss

9 from the inventory of housing that is affordable to

10 low-income or very low-income families; and

11 (3) demonstrate need for assistance under this

12 section for the purposes under subsection (b), expe13 rience in carrying out activities referred to in such

14 subsection, and capability to carry out such activi15 ties.

16 (d) DEFINITIONS.—In this section:

17 (1) ELIGIBLE AFFORDABLE HOUSING.—The

18 term ‘‘eligible affordable housing’’ means housing

19 that—

20 (A) consists of more than four dwelling

21 units;

22 (B) is insured or assisted under a program

23 of the Department of Housing and Urban De24 velopment or the Department of Agriculture

25 under which the property is subject to limita-
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•S 2733 IS

1 tions on tenant rents, rent contributions, or in2 comes; and

3 (C) is at risk, as determined by the Sec4 retary, of termination of any of the limitations

5 referred to in subparagraph (B).

6 (2) LOW-INCOME FAMILIES; VERY LOW-INCOME

7 FAMILIES.—The terms ‘‘low-income families’’ and

8 ‘‘very low-income families’’ have the meanings given

9 such terms in section 3(b) of the United States

10 Housing Act of 1937.

11 (e) AUTHORIZATION OF APPROPRIATIONS.—There

12 are authorized to be appropriated for grants under this

13 section such sums as may be necessary for each of fiscal

14 years 2001, 2002, 2003, and 2004.

15 SEC. 403. SECTION 236 ASSISTANCE.

16 Section 236(g) of the National Housing Act (12

17 U.S.C. 1715z–1(g)) is amended—

18 (1) in paragraph (2), by striking ‘‘Subject to

19 paragraph (3) and notwithstanding’’ and inserting

20 ‘‘Notwithstanding’’; and

21 (2) by striking paragraph (3) and redesignating

22 paragraph (4) as paragraph (3).

23 SEC. 404. PRESERVATION PROJECTS.

24 Section 524(e)(1) of the Multifamily Assisted Hous25 ing Reform and Affordability Act of 1997 (42 U.S.C.
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•S 2733 IS

1 1437f note) is amended by striking ‘‘amounts are specifi2 cally’’ and inserting ‘‘sufficient amounts are’’.

3 TITLE V—MORTGAGE INSUR4 ANCE FOR HEALTH CARE FA5 CILITIES AND HOME EQUITY

6 CONVERSION MORTGAGES

7 SEC. 501. REHABILITATION OF EXISTING HOSPITALS, NURS8 ING HOMES, AND OTHER FACILITIES.

9 Section 223(f) of the National Housing Act (12

10 U.S.C. 1715n(f)) is amended—

11 (1) in paragraph (1)—

12 (A) by striking ‘‘the refinancing of existing

13 debt of an’’; and

14 (B) by inserting ‘‘existing integrated serv15 ice facility,’’ after ‘‘existing board and care

16 home,’’;

17 (2) in paragraph (4)—

18 (A) by inserting ‘‘existing integrated serv19 ice facility,’’ after ‘‘board and care home,’’ each

20 place it appears;

21 (B) in subparagraph (A), by inserting be22 fore the semicolon at the end the following: ‘‘,

23 which refinancing, in the case of a loan on a

24 hospital, home, or facility that is within 2 years
58

•S 2733 IS

1 of maturity, shall include a mortgage made to

2 prepay such loan’’;

3 (C) in subparagraph (B), by inserting after

4 ‘‘indebtedness’’ the following: ‘‘, pay any other

5 costs including repairs, maintenance, minor im6 provements, or additional equipment which may

7 be approved by the Secretary,’’; and

8 (D) in subparagraph (D)—

9 (i) by inserting ‘‘existing’’ before ‘‘in10 termediate care facility’’; and

11 (ii) by inserting ‘‘existing’’ before

12 ‘‘board and care home’’; and

13 (3) by adding at the end the following:

14 ‘‘(6) In the case of purchase of an existing hos15 pital (or existing nursing home, existing assisted liv16 ing facility, existing intermediate care facility, exist17 ing board and care home, existing integrated service

18 facility or any combination thereof) the Secretary

19 shall prescribe such terms and conditions as the Sec20 retary deems necessary to assure that—

21 ‘‘(A) the proceeds of the insured mortgage

22 loan will be employed only for the purchase of

23 the existing hospital (or existing nursing home,

24 existing assisted living facility, existing inter25 mediate care facility, existing board and care
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1 home, existing integrated service facility or any

2 combination thereof) including the retirement of

3 existing debt (if any), necessary costs associated

4 with the purchase and the insured mortgage fi5 nancing, and such other costs, including costs

6 of repairs, maintenance, improvements, and ad7 ditional equipment, as may be approved by the

8 Secretary;

9 ‘‘(B) such existing hospital (or existing

10 nursing home, existing assisted living facility,

11 existing intermediate care facility, existing

12 board and care home, existing integrated serv13 ice facility, or any combination thereof) is eco14 nomically viable; and

15 ‘‘(C) the applicable requirements for cer16 tificates, studies, and statements of section 232

17 (for the existing nursing home, existing assisted

18 living facility, intermediate care facility, board

19 and care home, existing integrated service facil20 ity or any combination thereof, proposed to be

21 purchased) or of section 242 (for the existing

22 hospital proposed to be purchased) have been

23 met.’’.
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1 SEC. 502. NEW INTEGRATED SERVICE FACILITIES.

2 Section 232 of the National Housing Act (12 U.S.C.

3 1715w) is amended—

4 (1) in subsection (a)—

5 (A) in paragraph (1), by striking ‘‘are not

6 acutely ill and’’;

7 (B) in paragraph (2), by striking ‘‘never8 theless’’; and

9 (C) by adding at the end the following:

10 ‘‘(4) The development of integrated service fa11 cilities for the care and treatment of the elderly and

12 other persons in need of health care and related

13 services, but who do not require hospital care, and

14 the support of health care facilities which provide

15 such health care and related services (including

16 those that support hospitals (as defined in section

17 242(b))).’’;

18 (2) in subsection (b)—

19 (A) in paragraph (1), by striking ‘‘acutely

20 ill and not’’;

21 (B) in paragraph (4), by inserting after

22 the second period the following: ‘‘Such term in23 cludes a parity first mortgage or parity first

24 deed of trust, subject to such terms and condi25 tions as the Secretary may provide.’’;

26 (C) in paragraph (6)—
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•S 2733 IS

1 (i) by striking subparagraph (A) and

2 inserting the following:

3 ‘‘(A) meets all applicable licensing and reg4 ulatory requirements of the State, or if there is

5 no State law providing for such licensing and

6 regulation by the State, meets all applicable li7 censing and regulatory requirements of the mu8 nicipality or other political subdivision in which

9 the facility is located, or, in the absence of any

10 such requirements, meets any underwriting re11 quirements of the Secretary for such pur12 poses;’’; and

13 (ii) in subparagraph (C), by striking

14 ‘‘and’’ at the end;

15 (D) in paragraph (7), by striking the pe16 riod at the end and inserting ‘‘; and’’; and

17 (E) by adding at the end the following:

18 ‘‘(8) the term ‘integrated service facility’ means

19 a facility—

20 ‘‘(A) providing integrated health care deliv21 ery services designed and operated to provide

22 medical, convalescent, skilled and intermediate

23 nursing, board and care services, assisted living,

24 rehabilitation, custodial, personal care services,

25 or any combination thereof, to sick, injured,
62

•S 2733 IS

1 disabled, elderly, or infirm persons, or providing

2 services for the prevention of illness, or any

3 combination thereof;

4 ‘‘(B) designed, in whole or in part, to pro5 vide a continuum of care, as determined by the

6 Secretary, for the sick, injured, disabled, elder7 ly, or infirm;

8 ‘‘(C) providing clinical services, outpatient

9 services, including community health services

10 and medical practice facilities and group prac11 tice facilities, to sick, injured, disabled, elderly,

12 or infirm persons not in need of the services

13 rendered in other facilities insurable under this

14 title, or for the prevention of illness, or any

15 combination thereof; or

16 ‘‘(D)(i) designed, in whole or in part to

17 provide supportive or ancillary services to hos18 pitals (as defined in section 242(b)), which

19 services may include services provided by spe20 cial use health care facilities, professional office

21 buildings, laboratories, administrative offices,

22 and other facilities supportive or ancillary to

23 health care delivery by such hospitals; and

24 ‘‘(ii) that meet standards acceptable to the

25 Secretary, which may include standards gov-
63

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1 erning licensure or State or local approval and

2 regulation of a mortgagor; or

3 ‘‘(E) that provides any combination of the

4 services under subparagraphs (A) through

5 (D).’’;

6 (3) in subsection (d)—

7 (A) in the matter preceding paragraph

8 (1)—

9 (i) by inserting ‘‘board and care

10 home,’’ after ‘‘rehabilitated nursing

11 home,’’;

12 (ii) by inserting ‘‘integrated service

13 facility,’’ after ‘‘assisted living facility,’’ the

14 first 2 places it appears;

15 (iii) by inserting ‘‘board and care

16 home,’’ after ‘‘existing nursing home,’’;

17 and

18 (iv) by striking ‘‘or a board and care

19 home’’ and inserting ‘‘, board and care

20 home or integrated service facility’’;

21 (B) in paragraph (2)—

22 (i) in the matter preceding subpara23 graph (A), by inserting before ‘‘, includ24 ing’’ the following: ‘‘or a public body, pub-
64

•S 2733 IS

1 lic agency, or public corporation eligible

2 under this section’’; and

3 (ii) in subparagraph (B), by striking

4 ‘‘energy conservation measures’’ and all

5 that follows through ‘‘95–619)’’ and insert6 ing ‘‘energy conserving improvements (as

7 defined in section 2(a))’’.

8 (C) in paragraph (4)(A)—

9 (i) in the first sentence—

10 (I) by inserting ‘‘, and integrated

11 service facilities that include such

12 nursing home and intermediate care

13 facilities,’’ before ‘‘, the Secretary’’;

14 (II) by striking ‘‘or section 1521

15 of the Public Health Service Act’’ and

16 inserting ‘‘of the Public Health Serv17 ice Act, or other applicable Federal

18 law (or, in the absence of applicable

19 Federal law, by the Secretary),’’;

20 (III) by inserting ‘‘, or the por21 tion of an integrated service facility

22 providing such services,’’ before ‘‘cov23 ered by the mortgage,’’; and

24 (IV) by inserting ‘‘or for such

25 nursing or intermediate care services
65

•S 2733 IS

1 within an integrated service facility’’

2 before ‘‘, and (ii)’’;

3 (ii) in the second sentence, by insert4 ing ‘‘(which may be within an integrated

5 service facility)’’ after ‘‘home and facility’’;

6 (iii) in the third sentence—

7 (I) by striking ‘‘mortgage under

8 this section’’ and all that follows

9 through ‘‘feasibility’’ and inserting the

10 following: ‘‘such mortgage under this

11 section unless (i) the proposed mort12 gagor or applicant for the mortgage

13 insurance for the home or facility or

14 combined home or facility, or the inte15 grated service facility containing such

16 services, has commissioned and paid

17 for the preparation of an independent

18 study of market need for the project’’;

19 (II) in clause (i)(II), by striking

20 ‘‘and its relationship to, other health

21 care facilities and’’ and inserting ‘‘or

22 such facilities within an integrated

23 service facility, and its relationship to,

24 other facilities providing health care’’;
66

•S 2733 IS

1 (III) in clause (i)(IV), by striking

2 ‘‘in the event the State does not pre3 pare the study,’’; and

4 (IV) in clause (i)(IV), by striking

5 ‘‘the State or’’; and

6 (V) in clause (ii), by striking ‘‘or

7 section 1521 of the Public Health

8 Service Act’’ and inserting ‘‘of the

9 Public Health Service Act, or other

10 applicable Federal law (or, in the ab11 sence of applicable Federal law, by the

12 Secretary),’’;

13 (iv) by striking the penultimate sen14 tence and inserting the following: ‘‘A study

15 commissioned or undertaken by the State

16 in which the facility will be located shall be

17 considered to satisfy such market study re18 quirement. The proposed mortgagor or ap19 plicant may reimburse the State for the

20 cost of an independent study referred to in

21 the preceding sentence.’’; and

22 (v) in the last sentence—

23 (I) by inserting ‘‘the proposed

24 mortgagor or applicant for mortgage
67

•S 2733 IS

1 insurance may obtain from’’ after ‘‘10

2 individuals,’’;

3 (II) by striking ‘‘may’’ and in4 serting ‘‘and’’; and

5 (III) by inserting a comma before

6 ‘‘written support’’; and

7 (D) in paragraph (4)(C)(iii), by striking

8 ‘‘the appropriate State’’ and inserting ‘‘any ap9 propriate’’; and

10 (4) in subsection (i)(1), by inserting ‘‘integrated

11 service facilities,’’ after ‘‘assisted living facilities,’’.

12 SEC. 503. HOSPITALS AND HOSPITAL-BASED INTEGRATED

13 SERVICE FACILITIES.

14 Section 242 of the National Housing Act (12 U.S.C.

15 1715z–7) is amended—

16 (1) in subsection (b)—

17 (A) in paragraph (1)—

18 (i) in subparagraph (A), by adding

19 ‘‘and’’ at the end;

20 (ii) by striking subparagraph (B); and

21 (iii) by redesignating subparagraph

22 (C) as subparagraph (B) and striking

23 ‘‘and’’ at the end;

24 (B) in paragraph (2), by striking ‘‘respect25 fully’’ and all that follows through the period at
68

•S 2733 IS

1 the end and inserting ‘‘given such terms in sec2 tion 207(a), except that the term ‘mortgage’

3 shall include a parity first mortgage or parity

4 first deed of trust, subject to such terms and

5 conditions as the Secretary may provide; and’’;

6 and

7 (C) by adding at the end the following:

8 ‘‘(3) the term ‘integrated service facility’ has

9 the meaning given the term in section 232(b).’’;

10 (2) in subsection (c), by striking ‘‘title VII of’’

11 and inserting ‘‘title VI of’’;

12 (3) in subsection (d)—

13 (A) in the matter preceding paragraph (1),

14 by inserting after ‘‘operation,’’ the following:

15 ‘‘or that covers an integrated service facility

16 owned or to be owned by an applicant or pro17 posed mortgagor that also owns a hospital in

18 the same market area, including equipment to

19 be used in its operation,’’;

20 (B) in paragraph (1)—

21 (i) in the first sentence, by inserting

22 before the period at the end the following:

23 ‘‘and who, in the case of a mortgage cov24 ering an integrated service facility, is also

25 the owner of a hospital facility’’; and
69

•S 2733 IS

1 (ii) by adding at the end the fol2 lowing: ‘‘A mortgage insured hereunder

3 covering an integrated service facility may

4 only cover the real and personal property

5 where the eligible facility will be located.’’;

6 (C) in paragraph (2)(A), by inserting ‘‘or

7 integrated service facility’’ before the comma;

8 and

9 (D) in paragraph (2)(B), by striking ‘‘en10 ergy conservation measures’’ and all that fol11 lows through ‘‘95–619)’’ and inserting ‘‘energy

12 conserving improvements (as defined in section

13 2(a))’’;

14 (E) in paragraph (4)—

15 (i) in the first sentence—

16 (I) by inserting ‘‘for a hospital’’

17 after ‘‘any mortgage’’; and

18 (II) by striking ‘‘or section 1521

19 of the Public Health Service Act’’ and

20 inserting ‘‘of the Public Health Serv21 ice Act, or other applicable Federal

22 law (or, in the absence of applicable

23 Federal law, by the Secretary),’’;

24 (ii) by striking the third sentence and

25 inserting the following: ‘‘If no such State
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•S 2733 IS

1 agency exists, or if the State agency exists

2 but is not empowered to provide a certifi3 cation that there is a need for the hospital

4 as set forth in subparagraph (A) of the

5 first sentence, the Secretary shall not in6 sure any such mortgage under this section

7 unless: (A) the proposed mortgagor or ap8 plicant for the hospital has commissioned

9 and paid for the preparation of an inde10 pendent study of market need for the pro11 posed project that: (i) is prepared in ac12 cordance with the principles established by

13 the Secretary, in consultation with the Sec14 retary of Health and Human Services (to

15 the extent the Secretary of Housing and

16 Urban Development considers appro17 priate); (ii) assesses, on a marketwide

18 basis, the impact of the proposed hospital

19 on, and its relationship to, other facilities

20 providing health care services, the percent21 age of excess beds, demographic projec22 tions, alternative health care delivery sys23 tems, and the reimbursement structure of

24 the hospital; (iii) is addressed to and is ac25 ceptable to the Secretary in form and sub-
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•S 2733 IS

1 stance; and (iv) is prepared by a financial

2 consultant selected by the proposed mort3 gagor or applicant and approved by the

4 Secretary; and (B) the State complies with

5 the other provisions of this paragraph that

6 would otherwise be required to be met by

7 a State agency designated in accordance

8 with section 604(a)(1) of the Public Health

9 Service Act, or other applicable Federal

10 law (or, in the absence of applicable Fed11 eral law, by the Secretary). A study com12 missioned or undertaken by the State in

13 which the hospital will be located shall be

14 considered to satisfy such market study re15 quirement.’’; and

16 (iii) in the last sentence, by striking

17 ‘‘feasibility’’; and

18 (4) in subsection (f), by inserting ‘‘and public

19 integrated service facilities’’ after ‘‘public hospitals’’.

20 SEC. 504. HOME EQUITY CONVERSION MORTGAGES.

21 (a) IN GENERAL.—Section 255 of the National

22 Housing Act (12 U.S.C. 1715z–20) is amended—

23 (1) by redesignating subsection (k) as sub24 section (l); and
72

•S 2733 IS

1 (2) by inserting after subsection (j) the fol2 lowing:

3 ‘‘(k) INSURANCE AUTHORITY FOR REFINANCINGS.—

4 ‘‘(1) IN GENERAL.—The Secretary may, upon

5 application by a mortgagee, insure under this sub6 section any mortgage given to refinance an existing

7 home equity conversion mortgage insured under this

8 section.

9 ‘‘(2) ANTI-CHURNING DISCLOSURE.—The Sec10 retary shall, by regulation, require that the mort11 gagee of a mortgage insured under this subsection,

12 provide to the mortgagor, within an appropriate time

13 period and in a manner established in such regula14 tions, a good faith estimate of—

15 ‘‘(A) the total cost of the refinancing; and

16 ‘‘(B) the increase in the mortgagor’s prin17 cipal limit as measured by the estimated initial

18 principal limit on the mortgage to be insured

19 under this subsection less the current principal

20 limit on the home equity conversion mortgage

21 that is being refinanced and insured under this

22 subsection.

23 ‘‘(3) WAIVER OF COUNSELING REQUIRE24 MENT.—The mortgagor under a mortgage insured

25 under this subsection may waive the applicability,
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•S 2733 IS

1 with respect to such mortgage, of the requirements

2 under subsection (d)(2)(B) (relating to third party

3 counseling), but only if—

4 ‘‘(A) the mortgagor has received the disclo5 sure required under paragraph (2);

6 ‘‘(B) the increase in the principal limit de7 scribed in paragraph (2) exceeds the amount of

8 the total cost of refinancing (as described in

9 such paragraph) by an amount to be deter10 mined by the Secretary; and

11 ‘‘(C) the time between the closing of the

12 original home equity conversion mortgage that

13 is refinanced through the mortgage insured

14 under this subsection and the application for a

15 refinancing mortgage insured under this sub16 section does not exceed 5 years.

17 ‘‘(4) CREDIT FOR PREMIUMS PAID.—Notwith18 standing section 203(c)(2)(A), the Secretary may re19 duce the amount of the single premium payment

20 otherwise collected under such section at the time of

21 the insurance of a mortgage refinanced and insured

22 under this subsection. The amount of the single pre23 mium for mortgages refinanced under this sub24 section shall be determined by the Secretary based

25 on an actuarial study conducted by the Secretary.
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1 ‘‘(5) FEES.—The Secretary may establish a

2 limit on the origination fee that may be charged to

3 a mortgagor under a mortgage insured under this

4 subsection, except that such limitation shall provide

5 that the origination fee may be fully financed with

6 the mortgage and shall include any fees paid to cor7 respondent mortgagees approved by the Secretary.

8 The Secretary shall prohibit the charging of any

9 broker fees in connection with mortgages insured

10 under this subsection.’’.

11 (b) REGULATIONS.—

12 (1) IN GENERAL.—Notwithstanding sections 2

13 and 3 of this Act, the Secretary shall issue any final

14 regulations necessary to implement the amendments

15 made by subsection (a) of this section, which shall

16 take effect not later than the expiration of the 180-

17 day period beginning on the date of enactment of

18 this Act.

19 (2) PROCEDURE.—The regulations under this

20 subsection shall be issued after notice and oppor21 tunity for public comment in accordance with the

22 procedure under section 553 of title 5, United States

23 Code, applicable to substantive rules (notwith-
75

•S 2733 IS

1 standing subsections (a)(2), (b)(B), and (d)(3) of

2 such section).

Æ