‘‘(A) such preference is consistent with 
paragraph (2) of this subsection; and 
‘‘(B) the owner demonstrates that the sup-
portive services identified pursuant to subsection 
(e)(4), or additional supportive services to be 
made available upon implementation of the pref-
erence, will meet the needs of the homeless elder-
ly, maintain safety and security for all tenants, 
and be provided on a consistent, long-term, and 
economical basis.’’. 
TITLE II—REFINANCING 
SEC. 201. APPROVAL OF PREPAYMENT OF DEBT. 
Subsection (a) of section 811 of the American Home-
ownership and Economic Opportunity Act of 2000 (12 
U.S.C. 1701q note) is amended— 
(1) in the matter preceding paragraph (1), by 
inserting ‘‘, for which the Secretary’s consent to pre-
payment is required’’ after ‘‘Act)’’; 
(2) in paragraph (1)— 
(A) by inserting ‘‘project-based’’ before 
‘‘rental assistance payments contract’’; 
(B) by inserting ‘‘project-based’’ before 
‘‘rental housing assistance programs’’; and 
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(C) by inserting ‘‘, or any successor project- 
based 
rental 
assistance 
program,’’ 
after 
‘‘1701s))’’; and 
(3) in paragraph (2)— 
(A) by inserting ‘‘(A)’’ before ‘‘a lower’’; 
and 
(B) by inserting before the period at the end 
the following: ‘‘, or (B) a transaction in which 
the project owner will address the physical needs 
of the project, but only if, as a result of the refi-
nancing (i) the rent charges for unassisted fami-
lies residing in the project do not increase or 
such families are provided rental assistance 
under a senior preservation rental assistance 
contract for the project pursuant to subsection 
(e), and (ii) the overall cost for providing rental 
assistance under section 8 for the project (if any) 
does not increase’’. 
SEC. 202. SOURCES OF REFINANCING. 
The last sentence of section 811(b) of the American 
Homeownership and Economic Opportunity Act of 2000 
(12 U.S.C. 1701q note) is amended— 
(1) by inserting after ‘‘National Housing Act,’’ 
the following: ‘‘or approving the standards used by 
authorized lenders to underwrite a loan refinanced 
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with risk sharing as provided by section 542 of the 
Housing and Community Development Act of 1992 
(12 U.S.C. 1701 note),’’; and 
(2) by striking ‘‘may’’ and inserting ‘‘shall’’. 
SEC. 203. USE OF UNEXPENDED AMOUNTS. 
Subsection (c) of section 811 of the American Home-
ownership and Economic Opportunity Act of 2000 (12 
U.S.C. 1701q note) is amended— 
(1) in the matter preceding paragraph (1), by 
inserting after ‘‘tenants,’’ the following: ‘‘or is used in 
the provision of affordable rental housing and related 
social services for elderly persons by the private non-
profit organization project owner, private nonprofit 
organization project sponsor, or private nonprofit or-
ganization project developer,’’; 
(2) in paragraph (1), by striking ‘‘not more than 
15 percent of’’; 
(3) in paragraph (2), by inserting before the 
semicolon the following; ‘‘, including reducing the 
number of units and reconfiguring units that are 
functionally obsolete, unmarketable, or not economi-
cally viable’’; 
(4) in paragraph (3), by striking ‘‘or’’ at the 
end; 
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(5) in paragraph (4) by striking the period at 
the end and inserting a semicolon; and 
(6) by adding at the end the following new para-
graphs: 
‘‘(5) the payment to the project owner, sponsor, 
or third party developer of a developer’s fee in an 
amount not to exceed— 
‘‘(A) in the case of a project refinanced 
through a State low income housing tax credit 
program, the fee permitted by the low income 
housing tax credit program as calculated by the 
State program as a percentage of acceptable de-
velopment cost as defined by that State program; 
or 
‘‘(B) in the case of a project refinanced 
through any other source of refinancing, 15 per-
cent of the acceptable development cost; or 
‘‘(6) the payment of equity, if any, to— 
‘‘(A) in the case of a sale, to the seller or 
the sponsor of the seller, in an amount equal to 
the lesser of the purchase price or the appraised 
value of the property, as each is reduced by the 
cost of prepaying any outstanding indebtedness 
on the property and transaction costs of the sale; 
or 
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