I

106TH CONGRESS

1ST SESSION H. R. 202

To restructure the financing for assisted housing for senior citizens and

otherwise provide for the preservation of such housing in the 21st Century, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JANUARY 6, 1999

Mr. LAZIO (for himself, Mr. LEACH, and Mr. FRELINGHUYSEN) introduced

the following bill; which was referred to the Committee on Banking and

Financial Services

A BILL

To restructure the financing for assisted housing for senior

citizens and otherwise provide for the preservation of

such housing in the 21st Century, and for other purposes.

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.

4 This Act may be cited as the ‘‘Preserving Affordable

5 Housing for Senior Citizens into the 21st Century Act’’.
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1 TITLE I—CONVERSION OF

2 FINANCING

3 SEC. 101. CONVERSION.

4 Subject to the provisions of this title and the agree5 ment of the owner of a project assisted under section 202

6 of the Housing Act of 1959 (as in effect before the enact7 ment of the Cranston-Gonzalez National Affordable Hous8 ing Act) and section 8 of the United States Housing Act

9 of 1937, the Secretary may convert the financing of any

10 such housing project to financing under section 202 of the

11 Housing Act of 1959, as amended by section 801 of the

12 Cranston-Gonzalez National Affordable Housing Act (12

13 U.S.C. 1701q).

14 SEC. 102. DEBT FORGIVENESS.

15 (a) IN GENERAL.—Subject to subsection (b), in con16 verting the financing of any housing project pursuant to

17 this title, the Secretary may cancel any indebtedness to

18 the Secretary relating to any remaining principal and in19 terest under any loan for the project made under section

20 202 of the Housing Act of 1959 (as in effect before the

21 enactment of the Cranston-Gonzalez National Affordable

22 Housing Act).

23 (b) BUDGET ACT COMPLIANCE.—The authority of

24 the Secretary to cancel indebtedness under subsection (a)

25 shall be effective only to the extent or in such amounts
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1 as are or have been provided in advance in appropriation

2 Acts.

3 SEC. 103. CANCELLATION OF SECTION 8 CONTRACTS AND

4 USE OF PROJECT FUNDS.

5 (a) IN GENERAL.—In converting the financing of any

6 housing project pursuant to this title, the Secretary may

7 cancel any contract for rental assistance for the project

8 under section 8 of the United States Housing Act of 1937.

9 (b) USE OF UNEXPENDED AMOUNTS.—Amounts pre10 viously obligated for such contract that remain unex11 pended shall be used, to the extent the Secretary considers

12 appropriate, in accordance with subsection (d) to improve

13 the market viability, affordability, or service to low-income

14 elderly residents of the project. Any such unexpended

15 amounts in excess of the amount used in accordance with

16 subsection (d) shall be recaptured by the Secretary.

17 (c) USE OF PROJECT FUNDS.—In converting the fi18 nancing of any housing project pursuant to this title, the

19 Secretary may authorize the owner of the project to use

20 any residual receipts held for the project that exceed $500

21 per unit (or such other amount as the Secretary may pre22 scribe based on the needs of the project) in accordance

23 with subsection (d) to improve the market viability, afford24 ability, or service to low-income elderly residents of the

25 project.
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1 (d) ELIGIBLE ACTIVITIES.—Amounts are used in ac2 cordance with this subsection only if they are used—

3 (1) to provide rental assistance for the project,

4 under a contract for project rental assistance under

5 section 202(c)(2) of the Housing Act of 1959, which

6 has a duration that is not less than the remainder

7 of the section 8 contract canceled; or

8 (2) to retrofit or renovate the project or provide

9 a service coordinator for residents of the project, to

10 the same extent that such activities are authorized

11 to be provided under section 802 of the Cranston12 Gonzalez National Affordable Housing Act to hous13 ing assisted under such section.

14 SEC. 104. THIRD PARTY PROCESSING.

15 The Secretary may enter into contracts with public

16 or private entities as the Secretary considers appropriate

17 to facilitate efficient processing of elderly housing project

18 conversions under this title.

19 SEC. 105. WAIVER AUTHORITY.

20 The Secretary may waive the applicability of any pro21 vision of law or regulation necessary to carry out this title.
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1 TITLE II—AUTHORIZATION OF

2 APPROPRIATIONS

3 SEC. 201. SUPPORTIVE HOUSING FOR ELDERLY PERSONS.

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

5 1701q) is amended by adding at the end the following new

6 subsection:

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

8 is authorized to be appropriated for providing assistance

9 under this section $700,000,000 for fiscal year 2000 and

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

11 2001 and 2002.’’.

12 SEC. 202. SUPPORTIVE HOUSING FOR PERSONS WITH DIS13 ABILITIES.

14 Section 811 of the Cranston-Gonzalez National Af15 fordable Housing Act (42 U.S.C. 8013) is amended—

16 (1) by redesignating subsection (m) as sub17 section (n); and

18 (2) by inserting after subsection (l) the follow19 ing new subsection:

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

21 is authorized to be appropriated for providing assistance

22 under this section $225,000,000 for fiscal year 2000 and

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

24 2001 and 2002.’’.
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1 TITLE III—PROGRAM

2 AMENDMENTS

3 SEC. 301. AUTHORITY TO ACQUIRE STRUCTURES.

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

5 1701q) is amended—

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

7 Resolution Trust Corporation’’; and

8 (2) in subsection (h)(2)—

9 (A) in the heading for subparagraph (A),

10 by striking ‘‘RTC PROPERTIES’’ and inserting

11 ‘‘ACQUISITION’’; and

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

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

14 SEC. 302. MIXED FUNDING SOURCES.

15 (a) HOUSING FOR ELDERLY PERSONS.—Section

16 202(h)(6) of the Housing Act of 1959 (12 U.S.C.

17 1701q(h)(6)) is amended by striking ‘‘non-Federal

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

19 (b) HOUSING FOR PERSONS WITH DISABILITIES.—

20 Section 811(h)(5) of the Cranston-Gonzalez National Af21 fordable Housing Act (42 U.S.C. 8013(h)(5)) is amended

22 by striking ‘‘non-Federal sources’’ and inserting ‘‘sources

23 other than this section’’.
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1 SEC. 303. MIXED-INCOME OCCUPANCY.

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

3 202(i)(1) of the Housing Act of 1959 (12 U.S.C.

4 1701q(i)(1)) is amended by striking ‘‘and (B)’’ and insert5 ing the following: ‘‘(B) notwithstanding clause (A) and in

6 the case only of supportive housing for the elderly for

7 which construction is commenced before the date of the

8 enactment of the Preserving Affordable Housing for Sen9 ior Citizens into the 21st Century Act and which has a

10 high vacancy level (as such term is defined by the Sec11 retary), consistent with the purpose of improving housing

12 opportunities for very low- and low-income elderly persons;

13 and (C).’’.

14 (b) CONFORMING AMENDMENTS.—Section 202 of the

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

16 (1) in subsection (c)—

17 (A) in paragraph (1), by inserting after

18 ‘‘elderly persons’’ the following: ‘‘, and for low19 income elderly persons to the extent such occu20 pancy is made available pursuant to subsection

21 (i)(1)(B),’’;

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

23 by inserting after ‘‘elderly persons’’ the follow24 ing: ‘‘or by low-income elderly persons (to the

25 extent such occupancy is made available pursu26 ant to subsection (i)(1)(B))’’; and
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1 (C) in paragraph (3), by inserting after

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

3 low-income person (to the extent such occu4 pancy is made available pursuant to subsection

5 (i)(1)(B))’’;

6 (2) in subsection (d)(1), by inserting after ‘‘el7 derly persons’’ the following: ‘‘, and low-income el8 derly persons to the extent such occupancy is made

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

10 (3) in subsection (k)—

11 (A) by redesignating paragraphs (3)

12 through (8) as paragraphs (4) through (9), re13 spectively; and

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

15 following new paragraphs:

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

17 the same meaning given the term ‘low-income fami18 lies’ under section 3(b)(2) of the United States

19 Housing Act of 1937 (42 U.S.C. 1437a(b)(2)).

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