Section 202 Supportive Housing for the Elderly Act of 2010
PL 111-372 (S.118), enacted 01/04/2011

124 STAT. 4077 
PUBLIC LAW 111–372—JAN. 4, 2011 
Public Law 111–372 
111th Congress 
An Act 
To amend section 202 of the Housing Act of 1959, to improve the program under 
such section for supportive housing for the elderly, and for other purposes. 
Be it enacted by the Senate and House of Representatives of 
the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS. 
(a) SHORT TITLE.—This Act may be cited as the ‘‘Section 202 
Supportive Housing for the Elderly Act of 2010’’. 
(b) TABLE OF CONTENTS.—The table of contents for this Act 
is as follows: 
Sec. 1. Short title and table of contents. 
TITLE I—NEW CONSTRUCTION REFORMS 
Sec. 101. Selection criteria. 
Sec. 102. Development cost limitations. 
Sec. 103. Owner deposits. 
Sec. 104. Definition of private nonprofit organization. 
Sec. 105. Nonmetropolitan allocation. 
TITLE II—REFINANCING 
Sec. 201. Approval of prepayment of debt. 
Sec. 202. Use of unexpended amounts. 
Sec. 203. Use of project residual receipts. 
Sec. 204. Additional provisions. 
TITLE III—ASSISTED LIVING FACILITIES AND SERVICE-ENRICHED 
HOUSING 
Sec. 301. Amendments to the grants for conversion of elderly housing to assisted 
living facilities. 
Sec. 302. Monthly assistance payment under rental assistance. 
TITLE IV—COMPLIANCE WITH STATUTORY PAY-AS-YOU-GO ACT OF 2010 
Sec. 401. Budgetary effects. 
TITLE I—NEW CONSTRUCTION 
REFORMS 
SEC. 101. SELECTION CRITERIA. 
Section 202(f)(1) of the Housing Act of 1959 (12 U.S.C. 
1701q(f)(1)) is amended— 
(1) by redesignating subparagraphs (F) and (G) as subpara-
graphs (G) and (H), respectively; and 
(2) by inserting after subparagraph (E) the following new 
subparagraph: 
‘‘(F) the extent to which the applicant has ensured that 
a service coordinator will be employed or otherwise retained 
12 USC 1701 
note. 
Section 202 
Supportive 
Housing for the 
Elderly Act of 
2010. 
Jan. 4, 2011 
[S. 118] 
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124 STAT. 4078 
PUBLIC LAW 111–372—JAN. 4, 2011 
for the housing, who has the managerial capacity and responsi-
bility for carrying out the actions described in subparagraphs 
(A) and (B) of subsection (g)(2);’’. 
SEC. 102. DEVELOPMENT COST LIMITATIONS. 
Section 202(h)(1) of the Housing Act of 1959 (12 U.S.C. 
1701q(h)(1)) is amended, in the matter preceding subparagraph 
(A), by inserting ‘‘reasonable’’ before ‘‘development cost limitations’’. 
SEC. 103. OWNER DEPOSITS. 
Section 202(j)(3)(A) of the Housing Act of 1959 (12 U.S.C. 
1701q(j)(3)(A)) is amended by inserting after the period at the 
end the following: ‘‘Such amount shall be used only to cover oper-
ating deficits during the first 3 years of operations and shall not 
be used to cover construction shortfalls or inadequate initial project 
rental assistance amounts.’’. 
SEC. 104. DEFINITION OF PRIVATE NONPROFIT ORGANIZATION. 
Section 202(k)(4) of the Housing Act of 1959 (12 U.S.C. 
1701q(k)(4)) is amended to read as follows: 
‘‘(4) The term ‘private nonprofit organization’ means— 
‘‘(A) any incorporated private institution or founda-
tion— 
‘‘(i) no part of the net earnings of which inures 
to the benefit of any member, founder, contributor, 
or individual; 
‘‘(ii) which has a governing board— 
‘‘(I) the membership of which is selected in 
a manner to assure that there is significant rep-
resentation of the views of the community in which 
such housing is located; and 
‘‘(II) which is responsible for the operation of 
the housing assisted under this section, except 
that, in the case of a nonprofit organization that 
is the sponsoring organization of multiple housing 
projects assisted under this section, the Secretary 
may determine the criteria or conditions under 
which financial, compliance and other administra-
tive responsibilities exercised by a single-entity 
private nonprofit organization that is the owner 
corporation responsible for the operation of an indi-
vidual housing project may be shared or trans-
ferred to the governing board of such sponsoring 
organization; and 
‘‘(iii) which is approved by the Secretary as to 
financial responsibility; and 
‘‘(B) a for-profit limited partnership the sole general 
partner of which is— 
‘‘(i) an organization meeting the requirements 
under subparagraph (A); 
‘‘(ii) a for-profit corporation wholly owned and con-
trolled by one or more organizations meeting the 
requirements under subparagraph (A); or 
‘‘(iii) a limited liability company wholly owned and 
controlled by one or more organizations meeting the 
requirements under subparagraph (A).’’. 
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124 STAT. 4079 
PUBLIC LAW 111–372—JAN. 4, 2011 
SEC. 105. NONMETROPOLITAN ALLOCATION. 
Paragraph (3) of section 202(l) of the Housing Act of 1959 
(12 U.S.C. 1701q(l)(3)) is amended by inserting after the period 
at the end the following: ‘‘In complying with this paragraph, the 
Secretary shall either operate a national competition for the non-
metropolitan funds or make allocations to regional offices of the 
Department of Housing and Urban Development.’’. 
TITLE II—REFINANCING 
SEC. 201. APPROVAL OF PREPAYMENT OF DEBT. 
Subsection (a) of section 811 of the American Homeownership 
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 prepayment is required,’’ 
after ‘‘Affordable Housing Act)’’; 
(2) in paragraph (1)— 
(A) by inserting ‘‘at least 20 years following’’ before 
‘‘the maturity date’’; 
(B) by inserting ‘‘project-based’’ before ‘‘rental assist-
ance payments contract’’; 
(C) by inserting ‘‘project-based’’ before ‘‘rental housing 
assistance programs’’; and 
(D) by inserting ‘‘, or any successor project-based rental 
assistance program,’’ after ‘‘1701s))’’; 
(3) by amending paragraph (2) to read as follows: 
‘‘(2) the prepayment may involve refinancing of the loan 
if such refinancing results in— 
‘‘(A) a lower interest rate on the principal of the loan 
for the project and in reductions in debt service related 
to such loan; 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 refinancing— 
‘‘(i) the rent charges for unassisted families 
residing in the project do not increase or such families 
are provided rental assistance under a senior preserva-
tion 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) is not increased, 
except, upon approval by the Secretary to— 
‘‘(I) mark-up-to-market contracts pursuant to 
section 524(a)(3) of the Multifamily Assisted 
Housing Reform and Affordability Act (42 U.S.C. 
1437f note), as such section is carried out by the 
Secretary for properties owned by nonprofit 
organizations; or 
‘‘(II) mark-up-to-budget contracts pursuant to 
section 524(a)(4) of the Multifamily Assisted 
Housing Reform and Affordability Act (42 U.S.C. 
1437f note), as such section is carried out by the 
Secretary for properties owned by eligible owners 
(as such term is defined in section 202(k) of the 
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124 STAT. 4080 
PUBLIC LAW 111–372—JAN. 4, 2011 
Housing Act of 1959 (12 U.S.C. 1701q(k)); and’’; 
and 
(4) by adding at the end the following: 
‘‘(3) notwithstanding paragraph (2)(A), the prepayment and 
refinancing authorized pursuant to paragraph (2)(B) involves 
an increase in debt service only in the case of a refinancing 
of a project assisted with a loan under such section 202 carrying 
an interest rate of 6 percent or lower.’’. 
SEC. 202. USE OF UNEXPENDED AMOUNTS. 
Subsection (c) of section 811 of the American Homeownership 
and Economic Opportunity Act of 2000 (12 U.S.C. 1701q note) 
is amended— 
(1) by striking ‘‘USE OF UNEXPENDED AMOUNTS.—’’ and 
inserting ‘‘USE OF PROCEEDS.—’’; 
(2) by amending the matter preceding paragraph (1) to 
read as follows: ‘‘Upon execution of the refinancing for a project 
pursuant to this section, the Secretary shall ensure that pro-
ceeds are used in a manner advantageous to tenants of the 
project, or are used in the provision of affordable rental housing 
and related social services for elderly persons that are tenants 
of the project or are tenants of other HUD-assisted senior 
housing by the private nonprofit organization project owner, 
private nonprofit organization project sponsor, or private non-
profit organization project developer, including—’’; 
(3) by amending paragraph (1) to read as follows: 
‘‘(1) not more than 15 percent of the cost of increasing 
the availability or provision of supportive services, which may 
include the financing of service coordinators and congregate 
services, except that upon the request of the non-profit owner, 
sponsor, or organization and determination of the Secretary, 
such 15 percent limitation may be waived to ensure that the 
use of unexpended amounts better enables seniors to age in 
place;’’; 
(4) in paragraph (2), by inserting before the semicolon 
the following; ‘‘, including reducing the number of units by 
reconfiguring units that are functionally obsolete, unmarket-
able, or not economically viable’’; 
(5) in paragraph (3), by striking ‘‘or’’ at the end; 
(6) in paragraph (4), by striking ‘‘according to a pro rata 
allocation of shared savings resulting from the refinancing.’’ 
and inserting a semicolon; and 
(7) by adding at the end the following new paragraphs: 
‘‘(5) rehabilitation of the project to ensure long-term 
viability; and 
‘‘(6) the payment to the project owner, sponsor, or third 
party developer of a developer’s fee in an amount not to exceed 
or duplicate— 
‘‘(A) in the case of a project refinanced through a 
State low income housing tax credit program, the fee per-
mitted by the low income housing tax credit program as 
calculated by the State program as a percentage of accept-
able development cost as defined by that State program; 
or 
‘‘(B) in the case of a project refinanced through any 
other source of refinancing, 15 percent of the acceptable 
development cost. 
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124 STAT. 4081 
PUBLIC LAW 111–372—JAN. 4, 2011 
For purposes of paragraph (6)(B), the term ‘acceptable development 
cost’ shall include, as applicable, the cost of acquisition, rehabilita-
tion, loan prepayment, initial reserve deposits, and transaction 
costs.’’. 
SEC. 203. USE OF PROJECT RESIDUAL RECEIPTS. 
Paragraph (1) of section 811(d) of the American Homeownership 
and Economic Opportunity Act of 2000 (12 U.S.C. 1701q note) 
is amended— 
(1) by striking ‘‘not more than 15 percent of’’; and 
(2) by inserting before the period at the end the following: 
‘‘or other purposes approved by the Secretary’’. 
SEC. 204. ADDITIONAL PROVISIONS. 
Section 811 of the American Homeownership and Economic 
Opportunity Act of 2000 (12 U.S.C. 1701q note) is amended by 
adding at the end the following new subsections: 
‘‘(e) SENIOR PRESERVATION RENTAL ASSISTANCE CONTRACTS.— 
Notwithstanding any other provision of law, in connection with 
a prepayment plan for a project approved under subsection (a) 
by the Secretary or as otherwise approved by the Secretary to 
prevent displacement of elderly residents of the project in the 
case of refinancing or recapitalization and to further preservation 
and affordability of such project, the Secretary shall provide project- 
based rental assistance for the project under a senior preservation 
rental assistance contract, as follows: 
‘‘(1) Assistance under the contract shall be made available 
to the private nonprofit organization owner— 
‘‘(A) for a term of at least 20 years, subject to annual 
appropriations; and 
‘‘(B) under the same rules governing project-based 
rental assistance made available under section 8 of the 
Housing Act of 1937 or under the rules of such assistance 
as may be made available for the project. 
‘‘(2) Any projects for which a senior preservation rental 
assistance contract is provided shall be subject to a use agree-
ment to ensure continued project affordability having a term 
of the longer of (A) the term of the senior preservation rental 
assistance contract, or (B) such term as is required by the 
new financing. 
‘‘(f) SUBORDINATION
OR ASSUMPTION
OF EXISTING DEBT.—In 
lieu of prepayment under this section of the indebtedness with 
respect to a project, the Secretary may approve— 
‘‘(1) in connection with new financing for the project, the 
subordination of the loan for the project under section 202 
of the Housing Act of 1959 (as in effect before the enactment 
of the Cranston-Gonzalez National Affordable Housing Act) and 
the continued subordination of any other existing subordinate 
debt previously approved by the Secretary to facilitate preserva-
tion of the project as affordable housing; or 
‘‘(2) the assumption (which may include the subordination 
described in paragraph (1)) of the loan for the project under 
such section 202 in connection with the transfer of the project 
with such a loan to a private nonprofit organization. 
‘‘(g) FLEXIBLE SUBSIDY DEBT.—The Secretary shall waive the 
requirement that debt for a project pursuant to the flexible subsidy 
program under section 201 of the Housing and Community Develop-
ment Amendments of 1978 (12 U.S.C. 1715z–1a) be prepaid in 
Waiver authority. 
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124 STAT. 4082 
PUBLIC LAW 111–372—JAN. 4, 2011 
connection with a prepayment, refinancing, or transfer under this 
section of a project if the financial transaction or refinancing cannot 
be completed without the waiver. 
‘‘(h) TENANT INVOLVEMENT IN PREPAYMENT AND REFINANCING.— 
The Secretary shall not accept an offer to prepay the loan for 
any project under section 202 of the Housing Act of 1959 unless 
the Secretary— 
‘‘(1) has determined that the owner of the project has 
notified the tenants of the owner’s request for approval of 
a prepayment; and 
‘‘(2) has determined that the owner of the project has 
provided the tenants with an opportunity to comment on the 
owner’s request for approval of a prepayment, including on 
the description of any anticipated rehabilitation or other use 
of the proceeds from the transaction, and its impacts on project 
rents, tenant contributions, or the affordability restrictions for 
the project, and that the owner has responded to such comments 
in writing. 
‘‘(i) DEFINITION
OF PRIVATE NONPROFIT ORGANIZATION.—For 
purposes of this section, the term ‘private nonprofit organization’ 
has the meaning given such term in section 202(k) of the Housing 
Act of 1959 (12 U.S.C. 1701q(k)).’’. 
TITLE III—ASSISTED LIVING FACILITIES 
AND SERVICE-ENRICHED HOUSING 
SEC. 301. AMENDMENTS TO THE GRANTS FOR CONVERSION OF 
ELDERLY HOUSING TO ASSISTED LIVING FACILITIES. 
(a) TECHNICAL AMENDMENT.—The section heading for section 
202b of the Housing Act of 1959 (12 U.S.C. 1701q–2) is amended 
by inserting ‘‘AND
OTHER
PURPOSES’’ after ‘‘ASSISTED
LIVING 
FACILITIES’’. 
(b) EXTENSION
OF GRANT AUTHORITY.—Section 202b(a)(2) of 
the Housing Act of 1959 (12 U.S.C. 1701q–2(a)(2)) is amended— 
(1) by striking ‘‘(2) CONVERSION.—Activities’’ and inserting 
the following: 
‘‘(2) CONVERSION.— 
‘‘(A) ASSISTED LIVING FACILITIES.—Activities’’; and 
(2) by adding at the end the following: 
‘‘(B) SERVICE-ENRICHED HOUSING.—Activities designed 
to convert dwelling units in the eligible project to service- 
enriched housing for elderly persons.’’. 
(c) AMENDMENT TO APPLICATION PROCESS.—Section 202b(c)(1) 
of the Housing Act of 1959 (12 U.S.C. 1701q–2(c)(1)) is amended 
by inserting ‘‘for either an assisted living facility or service-enriched 
housing’’ after ‘‘activities’’. 
(d) REQUIREMENTS
FOR
SERVICES.—Section 202b(d) of the 
Housing Act of 1959 (12 U.S.C. 1701q–2(d)) is amended to read 
as follows: 
‘‘(d) REQUIREMENTS FOR SERVICES.— 
‘‘(1) SUFFICIENT
EVIDENCE
OF
FIRM
FUNDING
COMMIT-
MENTS.—The Secretary may not make a grant under this sec-
tion for conversion activities unless an application for a grant 
submitted pursuant to subsection (c) contains sufficient evi-
dence, in the determination of the Secretary, of firm commit-
ments for the funding of services to be provided in the assisted 
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124 STAT. 4083 
PUBLIC LAW 111–372—JAN. 4, 2011 
living facility or service-enriched housing, which may be pro-
vided by third parties. 
‘‘(2) REQUIRED EVIDENCE.—The Secretary shall require evi-
dence that each recipient of a grant for service-enriched housing 
under this section provides relevant and timely disclosure of 
information to residents or potential residents of such housing 
relating to— 
‘‘(A) the services that will be available at the property 
to each resident, including— 
‘‘(i) the right to accept, decline, or choose such 
services and to have the choice of provider; 
‘‘(ii) the services made available by or contracted 
through the grantee; 
‘‘(iii) the identity of, and relevant information for, 
all agencies or organizations providing any services 
to residents, which agencies or organizations shall pro-
vide information regarding all procedures and require-
ments to obtain services, any charges or rates for the 
services, and the rights and responsibilities of the resi-
dents related to those services; 
‘‘(B) the availability, identity, contact information, and 
role of the service coordinator; and 
‘‘(C) such other information as the Secretary deter-
mines to be appropriate to ensure that residents are ade-
quately informed of the services options available to pro-
mote resident independence and quality of life.’’. 
(e) AMENDMENTS TO SELECTION CRITERIA.—Section 202b(e) of 
the Housing Act of 1959 (12 U.S.C. 1701q–2(e)) is amended— 
(1) in paragraph (2)— 
(A) by inserting ‘‘or service-enriched housing’’ after 
‘‘facilities’’; and 
(B) by inserting ‘‘service-enriched housing’’ after 
‘‘facility’’; 
(2) in paragraph (5), by inserting ‘‘or service-enriched 
housing’’ after ‘‘facility’’; and 
(3) in paragraph (6), by inserting ‘‘or service-enriched 
housing’’ after ‘‘facility’’. 
(f) AMENDMENTS TO SECTION 8 PROJECT-BASED ASSISTANCE.— 
Section 202b(f) of the Housing Act of 1959 (12 U.S.C. 1701q– 
2(f)) is amended— 
(1) in paragraph (1), by inserting ‘‘or service-enriched 
housing’’ after ‘‘facilities’’ each time that term appears; and 
(2) in paragraph (2), by inserting ‘‘or service-enriched 
housing’’ after ‘‘facility’’. 
(g) AMENDMENTS
TO
DEFINITIONS.—Section 202b(g) of the 
Housing Act of 1959 (12 U.S.C. 1701q–2(g)) is amended to read 
as follows: 
‘‘(g) DEFINITIONS.—For purposes of this section— 
‘‘(1) the term ‘assisted living facility’ has the meaning given 
such term in section 232(b) of the National Housing Act 
(1715w(b)); 
‘‘(2) the term ‘service-enriched housing’ means housing 
that— 
‘‘(A) makes available through licensed or certified third 
party service providers supportive services to assist the 
residents in carrying out activities of daily living, such 
as bathing, dressing, eating, getting in and out of bed 
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124 STAT. 4084 
PUBLIC LAW 111–372—JAN. 4, 2011 
or chairs, walking, going outdoors, using the toilet, laundry, 
home management, preparing meals, shopping for personal 
items, obtaining and taking medication, managing money, 
using the telephone, or performing light or heavy house-
work, and which may make available to residents home 
health care services, such as nursing and therapy; 
‘‘(B) includes the position of service coordinator, which 
may be funded as an operating expense of the property; 
‘‘(C) provides separate dwelling units for residents, 
each of which contains a full kitchen and bathroom and 
which includes common rooms and other facilities appro-
priate for the provision of supportive services to the resi-
dents of the housing; and 
‘‘(D) provides residents with control over health care 
and supportive services decisions, including the right to 
accept, decline, or choose such services, and to have the 
choice of provider; and 
‘‘(3) the definitions in section 1701(q)(k) of this title shall 
apply.’’. 
SEC. 302. MONTHLY ASSISTANCE PAYMENT UNDER RENTAL ASSIST-
ANCE. 
Clause (iii) of section 8(o)(18)(B) of the United States Housing 
Act of 1937 (42 U.S.C. 1437f(o)(18)(B)(iii)) is amended by inserting 
before the period at the end the following: ‘‘, except that a family 
may be required at the time the family initially receives such 
assistance to pay rent in an amount exceeding 40 percent of the 
monthly adjusted income of the family by such an amount or 
percentage that is reasonable given the services and amenities 
provided and as the Secretary deems appropriate.’’. 
TITLE IV—COMPLIANCE WITH STATU-
TORY PAY-AS-YOU-GO ACT OF 2010 
SEC. 401. BUDGETARY EFFECTS. 
The budgetary effects of this Act, for the purpose of complying 
with the Statutory Pay-As-You-Go-Act of 2010, shall be determined 
by reference to the latest statement titled ‘‘Budgetary Effects of 
PAYGO Legislation’’ for this Act, submitted for printing in the 
Applicability. 
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124 STAT. 4085 
PUBLIC LAW 111–372—JAN. 4, 2011 
LEGISLATIVE HISTORY—S. 118: 
CONGRESSIONAL RECORD, Vol. 156 (2010): 
Dec. 18, considered and passed Senate. 
Dec. 21, considered and passed House. 
Congressional Record by the Chairman of the Senate Budget Com-
mittee, provided that such statement has been submitted prior 
to the vote on passage. 
Approved January 4, 2011. 
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