I
105TH CONGRESS
2D SESSION
H. R. 3635
To provide for the conversion of housing projects for elderly persons financed
by direct loans to financing under project rental assistance contracts.
IN THE HOUSE OF REPRESENTATIVES
APRIL 1, 1998
Mr. LAZIO of New York (for himself, Mr. LEACH, Mr. KENNEDY of Massachu-
setts, Mr. HAYWORTH, Mr. BEREUTER, Mr. SESSIONS, Mr. TRAFICANT,
Mr. ENSIGN, Mr. EHRLICH, Mr. NEY, Mr. FOX of Pennsylvania, Mrs.
KELLY, Mr. PORTMAN, Mr. JACKSON, Mr. JONES, Mr. COOK, Mr.
ENGLISH of Pennsylvania, and Mr. METCALF) introduced the following
bill; which was referred to the Committee on Banking and Financial
Services
A BILL
To provide for the conversion of housing projects for elderly
persons financed by direct loans to financing under
project rental assistance contracts.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Senior Citizens’’ Hous-
ing Financial Restructuring Act of 1998’’.
SEC. 2. CONVERSION.
Subject to the provisions of this Act and the agree-
ment of the owner of a project assisted under section 202
of the Housing Act of 1959 (as in effect before the enact-
ment of the Cranston-Gonzalez National Affordable Hous-
ing Act) and section 8 of the United States Housing Act
of 1937, the Secretary may convert the financing of any
such housing project to financing under section 202 of the
Housing Act of 1959, as amended by section 801 of the
Cranston-Gonzalez National Affordable Housing Act (12
U.S.C. 1701q).
SEC. 3. DEBT FORGIVENESS.
(a) IN GENERAL.—Subject to subsection (b), in con-
verting the financing of any housing project pursuant to
this Act, the Secretary may cancel any indebtedness to
the Secretary relating to any remaining principal and in-
terest under any loan for the project made under section
202 of the Housing Act of 1959 (as in effect before the
enactment of the Cranston-Gonzalez National Affordable
Housing Act).
(b) BUDGET ACT COMPLIANCE.—The authority of
the Secretary to cancel indebtedness under subsection (a)
shall be effective only to the extent or in such amounts
as are or have been provided in advance in appropriation
Acts.
SEC. 4. CANCELLATION OF SECTION 8 CONTRACTS AND
USE OF PROJECT FUNDS.
(a) IN GENERAL.—In converting the financing of any
housing project pursuant to this Act, the Secretary may
cancel any contract for rental assistance for the project
under section 8 of the United States Housing Act of 1937.
(b) USE OF UNEXPENDED AMOUNTS.—Amounts pre-
viously obligated for such contract that remain unex-
pended shall be used, to the extent the Secretary considers
appropriate, in accordance with subsection (d) to improve
the market viability, affordability, or service to low-income
elderly residents of the project. Any such unexpended
amounts in excess of the amount used in accordance with
subsection (d) shall be recaptured by the Secretary.
(c) USE OF PROJECT FUNDS.—In converting the fi-
nancing of any housing project pursuant to this Act, the
Secretary may authorize the owner of the project to use
any residual receipts held for the project that exceed $500
per unit (or such other amount as the Secretary may pre-
scribe based on the needs of the project) in accordance
with subsection (d) to improve the market viability, afford-
ability, or service to low-income elderly residents of the
project.
(d) ELIGIBLE ACTIVITIES.—Amounts are used in ac-
cordance with this subsection only if they are used—