HR 5772
110th CONGRESS
2d Session
H. R. 5772
To amend section 811 of the Cranston-Gonzalez National Affordable
Housing Act to improve the program under such section for supportive housing
for persons with disabilities.
IN THE HOUSE OF REPRESENTATIVES
April 10, 2008
Mr. MURPHY of Connecticut (for himself and Mrs. BIGGERT) introduced the following
bill; which was referred to the Committee on Financial Services
A BILL
To amend section 811 of the Cranston-Gonzalez National Affordable
Housing Act to improve the program under such section for supportive housing
for persons with disabilities.
Be it enacted by the Senate and House of Representatives of the United
States of America in Congress assembled,
SECTION 1. SHORT TITLE; REFERENCES.
(a) Short Title- This Act may be cited as the `Frank Melville Supportive Housing
Investment Act of 2008'.
(b) References- Except as otherwise expressly provided, wherever in this Act
an amendment or repeal is expressed in terms of an amendment to, or repeal
of, section 811 or any other provision of section 811, the reference shall
be considered to be made to section 811 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 8013).
SEC. 2. TENANT-BASED RENTAL ASSISTANCE THROUGH CERTIFICATE FUND.
(a) Termination of Mainstream Tenant-Based Rental Assistance Program- Section
811 is amended--
(A) by striking the subsection designation and all that follows through
the end of subparagraph (B) of paragraph (2) and inserting the following:
`(b) Authority To Provide Assistance- The Secretary is authorized to provide
assistance to private nonprofit organizations to expand the supply of supportive
housing for persons with disabilities, which shall be provided as--
`(1) capital advances in accordance with subsection (d)(1), and
`(2) contracts for project rental assistance in accordance with subsection
(d)(2).'; and
(B) by striking `assistance under this paragraph' and inserting `Assistance
under this subsection';
(2) in subsection (d), by striking paragraph (4); and
(3) in subsection (l), by striking paragraph (1).
(b) Renewal Through Section 8- Section 811 is amended by adding at the end
the following new subsection:
`(p) Authorization of Appropriations for Section 8 Assistance-
`(1) IN GENERAL- There is authorized to be appropriated for tenant-based
rental assistance under section 8(o) of the United States Housing Act of
1937 (42 U.S.C. 1437f(o)) for persons with disabilities in fiscal year 2009
the amount necessary to provide a number of incremental vouchers under such
section that is equal to the number of vouchers provided in fiscal year
2008 under the tenant-based rental assistance program under subsection (d)(4)
of this section (as in effect before the date of the enactment of the Frank
Melville Supportive Housing Investment Act of 2008).
`(2) REQUIREMENTS UPON TURNOVER- The Secretary shall develop and issue,
to public housing agencies that receive voucher assistance made available
under this subsection and to public housing agencies that received voucher
assistance under section 8(o) of the United States Housing Act of 1937 (42
U.S.C. 1437f(o)) for non-elderly disabled families pursuant to appropriation
Acts for fiscal years 1997 through 2002 or any other subsequent appropriations
for incremental vouchers for non-elderly disabled families, guidance to
ensure that, to the maximum extent possible, such vouchers continue to be
provided upon turnover to qualified persons with disabilities or to qualified
non-elderly disabled families, respectively.'.
SEC. 3. MODERNIZED CAPITAL ADVANCE PROGRAM.
(a) Project Rental Assistance Contracts- Section 811 is amended--
(1) in subsection (d)(2)--
(A) by inserting `(A) INITIAL PROJECT RENTAL ASSISTANCE CONTRACT- ' after
`PROJECT RENTAL ASSISTANCE- '
(B) in the first sentence, by inserting after `shall' the following: `comply
with subsection (e)(2) and shall';
(C) by striking `annual contract amount' each place such term appears
and inserting `amount provided under the contract for each year covered
by the contract'; and
(D) by adding at the end the following new subparagraph:
`(B) RENEWAL OF AND INCREASES IN CONTRACT AMOUNTS-
`(i) EXPIRATION OF CONTRACT TERM- Upon the expiration of each contract
term, subject to the availability of amounts made available in appropriation
Acts, the Secretary shall adjust the annual contract amount to provide
for reasonable project costs, and any increases, including adequate reserves,
supportive services, and service coordinators, except that any contract
amounts not used by a project during a contract term shall not be available
for such adjustments upon renewal.
`(ii) EMERGENCY SITUATIONS- In the event of emergency situations that
are outside the control of the owner, the Secretary shall increase the
annual contract amount, subject to reasonable review and limitations as
the Secretary shall provide and to the availability of amounts made available
in appropriation Acts.'.
(2) in subsection (e)(2)--
(A) in the first sentence, by inserting before the period at the end the
following: `, except that, in the case of the sponsor of a project assisted
with any low-income housing tax credit pursuant to section 42 of the Internal
Revenue Code of 1986 or with any tax-exempt housing bonds, the contract
shall have an initial term of not be less than 360 months and shall provide
funding for a term of 60 months'; and
(B) by striking `extend any expiring contract' and insert `upon expiration
of a contract (or any renewed contract), renew such contract'.
(b) Program Requirements- Section 811 is amended--
(A) by striking the subsection heading and inserting the following: `Program
Requirements';
(B) by striking paragraph (1) and inserting the following new paragraph:
`(A) TERM- Any project for which a capital advance is provided under subsection
(d)(1) shall be operated for not less than 40 years as supportive housing
for persons with disabilities, in accordance with the application for
the project approved by the Secretary and shall, during such period, be
made available for occupancy only by very low-income persons with disabilities.
`(B) CONVERSION- If the owner of a project requests the use of the project
for the direct benefit of very low-income persons with disabilities and,
pursuant to such request the Secretary determines that a project is no
longer needed for use as supportive housing for persons with disabilities,
the Secretary may approve the request and authorize the owner to convert
the project to such use.'; and
(C) by adding at the end the following new paragraphs:
`(3) LIMITATION ON USE OF FUNDS- No assistance received under this section
(or any State or local government funds used to supplement such assistance)
may be used to replace other State or local funds previously used, or designated
for use, to assist persons with disabilities.
`(4) MULTIFAMILY PROJECTS-
`(A) LIMITATION- Except as provided in subparagraph (B), of the total
number of dwelling units in any multifamily housing project (including
any condominium or cooperative housing project) containing any unit for
which assistance is provided from a capital grant under subsection (d)(1)
made after the date of the enactment of the Frank Melville Supportive
Housing Investment Act of 2008, the aggregate number that are used for
persons with disabilities, including supportive housing for persons with
disabilities, or to which any occupancy preference for persons with disabilities
applies, may not exceed 25 percent of such total.
`(B) EXCEPTION- Subparagraph (A) shall not apply in the case of any project
that is a group home or independent living facility.'; and
(2) in subsection (l), by striking paragraph (4).
(c) Delegated Processing- Subsection (g) of section 811 (42 U.S.C. 8013(g))
is amended--
(1) by striking `Selection Criteria- ' and inserting `Selection Criteria
and Processing- (1) SELECTION CRITERIA- ';
(2) by redesignating paragraphs (1), (2), (3), (4), (5), (6), and (7) as
subparagraphs (A), (B), (C), (D), (E), (G), and (H), respectively;
(3) by adding at the end the following new paragraph:
`(2) Delegated Processing-
`(A) In issuing a capital advance under subsection (d)(1) for any multifamily
project (but not including any project that is a group home or independent
living facility) for which financing for the purposes described in the last
sentence of subsection (b) is provided by a combination of the capital advance
and sources other than this section, within 30 days of award of the capital
advance, the Secretary shall delegate review and processing of such projects
to a State or local housing agency that--
`(i) is in geographic proximity to the property;
`(ii) has demonstrated experience in and capacity for underwriting multifamily
housing loans that provide housing and supportive services;
`(iii) may or may not be providing low-income housing tax credits in combination
with the capital advance under this section; and
`(iv) agrees to issue a firm commitment within 12 months of delegation.
`(B) The Secretary shall retain the authority to process capital advances
in cases in which no State or local housing agency has applied to provide
delegated processing pursuant to this paragraph or no such agency has entered
into an agreement with the Secretary to serve as a delegated processing
agency.
`(C) An agency to which review and processing is delegated pursuant to subparagraph
(A) may assess a reasonable fee which shall be included in the capital advance
amounts and may recommend project rental assistance amounts in excess of
those initially awarded by the Secretary. The Secretary shall develop a
schedule for reasonable fees under this subparagraph to be paid to delegated
processing agencies, which shall take into consideration any other fees
to be paid to the agency for other funding provided to the project by the
agency, including bonds, tax credits, and other gap funding.
`(D) Under such delegated system, the Secretary shall retain the authority
to approve rents and development costs and to execute a capital advance
within 60 days of receipt of the commitment from the State or local agency.
The Secretary shall provide to such agency and the project sponsor, in writing,
the reasons for any reduction in capital advance amounts or project rental
assistance and such reductions shall be subject to appeal.'.
(d) Leveraging Other Resources- Paragraph (1) of section 811(g) (as so designated
by subsection (c)(1) of this section) is amended by inserting after subparagraph
(E) (as so redesignated by subsection (c)(2) of this section) the following
new subparagraph:
`(F) the extent to which the per-unit cost of units to be assisted under
this section will be supplemented with resources from other public and
private sources;'.
(e) Tenant Protections and Eligibility for Occupancy- Section 811 is amended
by striking subsection (i) and inserting the following new subsection:
`(i) Admission and Occupancy-
`(A) PROCEDURES- An owner shall adopt written tenant selection procedures
that are satisfactory to the Secretary as (i) consistent with the purpose
of improving housing opportunities for very low-income persons with disabilities;
and (ii) reasonably related to program eligibility and an applicant's
ability to perform the obligations of the lease. Owners shall promptly
notify in writing any rejected applicant of the grounds for any rejection.
`(B) REQUIREMENT FOR OCCUPANCY- Occupancy in dwelling units provided assistance
under this section shall be available only to persons with disabilities
and households that include at least one person with a disability.
`(C) AVAILABILITY- Except only as provided in subparagraph (D), occupancy
in dwelling units in housing provided with assistance under this section
shall be available to all persons with disabilities eligible for such
occupancy without regard to the particular disability involved.
`(D) LIMITATION ON OCCUPANCY- Notwithstanding any other provision of law,
the owner of housing developed under this section may, with the approval
of the Secretary, limit occupancy within the housing to persons with disabilities
who can benefit from the supportive services offered in connection with
the housing.
`(A) LEASE- The lease between a tenant and an owner of housing assisted
under this section shall be for not less than one year, and shall contain
such terms and conditions as the Secretary shall determine to be appropriate.
`(B) TERMINATION OF TENANCY- An owner may not terminate the tenancy or
refuse to renew the lease of a tenant of a rental dwelling unit assisted
under this section except--
`(i) for serious or repeated violation of the terms and conditions of
the lease, for violation of applicable Federal, State, or local law,
or for other good cause; and
`(ii) by providing the tenant, not less than 30 days before such termination
or refusal to renew, with written notice specifying the grounds for
such action.
`(C) VOLUNTARY PARTICIPATION IN SERVICES- A supportive service plan for
housing assisted under this section shall permit each resident to take
responsibility for choosing and acquiring their own services, to receive
any supportive services made available directly or indirectly by the owner
of such housing, or to not receive any supportive services.'.
(f) Development Cost Limitations- Subsection (h) of section 811 is amended--
(A) by striking the paragraph heading and inserting `GROUP HOMES';
(B) in the first sentence, by striking `various types and sizes' and inserting
`group homes';
(C) by striking subparagraph (E); and
(D) by redesignating subparagraphs (F) and (G) as subparagraphs (E) and
(F), respectively;
(2) in paragraph (3), by inserting `established pursuant to paragraph (1)'
after `cost limitation'; and
(3) by adding at the end the following new paragraph:
`(6) APPLICABILITY OF HOME PROGRAM COST LIMITATIONS-
`(A) IN GENERAL- The provisions of section 212(e) of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12742(e)) and the cost limits
established by the Secretary pursuant to such section with respect to
the amount of funds under subtitle A of title II of such Act that may
be invested on a per unit basis, shall apply to supportive housing assisted
with a capital advance under subsection (d)(1) and the amount of funds
under such subsection that may be invested on a per unit basis.
`(B) WAIVERS- The Secretary shall provide for waiver of the cost limits
applicable pursuant to subparagraph (A)--
`(i) in the cases in which the cost limits established pursuant to section
212(e) of the Cranston-Gonzalez National Affordable Housing Act may
be waived; and
`(I) the cost of special design features to make the housing accessible
to persons with disabilities;
`(II) the cost of special design features necessary to make individual
dwelling units meet the special needs of persons with disabilities;
and
`(III) the cost of providing the housing in a location that is accessible
to public transportation and community organizations that provide
supportive services to persons with disabilities.'.
(g) Repeal of Authority To Waive Size Limitations- Paragraph (1) of section
811(k) is amended--
(1) in paragraph (1), by striking the second sentence; and
(2) in paragraph (4), by striking `(or such higher number of persons' and
all that follows through `subsection (h)(6))'.
(h) Minimum Allocation for Multifamily Projects- Subsection (l) of section
811, as amended by the preceding provisions of this Act, is further amended
by inserting before paragraph (2) the following new paragraph:
`(1) MINIMUM ALLOCATION FOR MULTIFAMILY PROJECTS- The Secretary shall establish
a minimum percentage of the amount made available for each fiscal year for
capital advances under subsection (d)(1) that shall be used for multifamily
projects subject to subsection (e)(4).'.
SEC. 4. PROJECT RENTAL ASSISTANCE COMPETITIVE DEMONSTRATION PROGRAM.
Section 811, as amended by the preceding provisions of this Act, is further
amended--
(1) by redesignating subsections (k) through (n) as subsections (l) through
(o), respectively; and
(2) by inserting after subsection (j) the following new subsection:
`(k) Project Rental Assistance-Only Competitive Demonstration Program-
`(1) AUTHORITY- The Secretary shall carry out a demonstration program under
this subsection to expand the supply of supportive housing for non-elderly
adults with disabilities, under which the Secretary shall make funds available
for project rental assistance pursuant to paragraph (2) for eligible projects
under paragraph (3). The Secretary shall provide for State housing finance
agencies and other appropriate entities to apply to the Secretary for such
project rental assistance funds, which shall be made available by such agencies
and entities for dwelling units in eligible projects based upon criteria
established by the Secretary for the demonstration program under this subsection.
`(2) PROJECT RENTAL ASSISTANCE-
`(A) CONTRACT TERMS- Project rental assistance under the demonstration
program under this subsection shall be provided--
`(i) in accordance with subsection (d)(2);
`(ii) under a contract having an initial term of not less than 180 months
that provides funding for a term 60 months, which funding shall be renewed
upon expiration, subject to the availability of sufficient amounts in
appropriation Acts.
`(B) LIMITATION ON UNITS ASSISTED- Of the total number of dwelling units
in any multifamily housing project containing any unit for which project
rental assistance under the demonstration program under this subsection
is provided, the aggregate number that are provided such project rental
assistance, that are used for supportive housing for persons with disabilities,
or to which any occupancy preference for persons with disabilities applies,
may not exceed 25 percent of such total.
`(C) PROHIBITION OF CAPITAL ADVANCES- The Secretary may not provide a
capital advance under subsection (d)(1) for any project for which assistance
is provided under the demonstration program.
`(D) ELIGIBLE POPULATION- Project rental assistance under the demonstration
program under this subsection may be provided only for dwelling units
for extremely low-income persons with disabilities and extremely low-income
households that include at least one person with a disability.
`(3) ELIGIBLE PROJECTS- An eligible project under this paragraph is a new
or existing multifamily housing project for which--
`(A) the development costs are paid with resources from other public or
private sources; and
`(B) a commitment has been made--
`(i) by the applicable State agency responsible for allocation of low-income
housing tax credits under section 42 of the Internal Revenue Code of
1986, for an allocation of such credits;
`(ii) by the applicable participating jurisdiction that receives assistance
under the HOME Investment Partnership Act, for assistance from such
jurisdiction; or
`(iii) by any Federal agency or any State or local government, for funding
for the project from funds from any other sources.
`(4) STATE AGENCY INVOLVEMENT- Assistance under the demonstration may be
provided only for projects for which the applicable State agency responsible
for health and human services programs, and the applicable State agency
designated to administer or supervise the administration of the State plan
for medical assistance under title XIX of the Social Security Act, have
entered into such agreements as the Secretary considers appropriate--
`(A) to identify the target populations to be served by the project;
`(B) to set forth methods for outreach and referral; and
`(C) to make available appropriate services for tenants of the project.
`(5) USE REQUIREMENTS- In the case of any project for which project rental
assistance is provided under the demonstration program under this subsection,
the dwelling units assisted pursuant to paragraph (2) shall be operated
for not less than 30 years as supportive housing for persons with disabilities,
in accordance with the application for the project approved by the Secretary,
and such dwelling units shall, during such period, be made available for
occupancy only by persons and households described in paragraph (2)(D).
`(6) REPORT- Upon the expiration of the 5-year period beginning on the date
of the enactment of the Frank Melville Supportive Housing Investment Act
of 2008, the Secretary shall submit to the Congress a report describing
the demonstration program under this subsection, analyzing the effectiveness
of the program, including the effectiveness of the program compared to the
program for capital advances in accordance with subsection (d)(1) (as in
effect pursuant to the amendments made by such Act), and making recommendations
regarding future models for assistance under this section based upon the
experiences under the program.'.
SEC. 5. TECHNICAL CORRECTIONS.
(A) in paragraph (1), by striking `and' at the end;
(i) by striking `provides' and inserting `makes available'; and
(ii) by striking the period at the end and inserting `; and' ; and
(C) by adding at the end the following new paragraph:
`(3) promotes and facilitates community integration for people with significant
and long-term disabilities.';
(A) in paragraph (1), by striking `special' and inserting `housing and
community-based services'; and
(i) by striking subparagraph (A) and inserting the following:
`(A) make available voluntary supportive services that address the individual
needs of persons with disabilities occupying such housing;'; and
(ii) in subparagraph (B), by striking the comma and inserting a semicolon;
(3) in subsection (d)(1), by striking `provided under' and all that follows
through `shall bear' and inserting `provided pursuant to subsection (b)(1)
shall bear';
(i) in subparagraph (B), by striking `receive' and inserting `be offered';
(ii) by striking subparagraph (C) and inserting the following:
`(C) evidence of the applicant's experience in--
`(i) providing such supportive services; or
`(ii) creating and managing structured partnerships with service providers
for the delivery of appropriate community-based services;';
(iii) in subparagraph (D), by striking `such persons' and all that follows
through `provision of such services' and inserting `tenants'; and
(iv) in subparagraph (E), by inserting `other Federal, and' before `State';
and
(B) in paragraph (4), by striking `special' and inserting `housing and
community-based services';
(5) in subsection (g), in paragraph (1) (as so redesignated by section 3(c)(1)
of this Act)--
(A) in subparagraph (D) (as so redesignated by section 3(c)(2) of this
Act), by striking `the necessary supportive services will be provided'
and inserting `appropriate supportive services will be made available';
and
(B) by striking subparagraph (E) (as so redesignated by section 3(c)(2)
of this Act) and inserting the following:
`(E) the extent to which the location and design of the proposed project
will facilitate the provision of community-based supportive services and
address other basic needs of persons with disabilities, including access
to appropriate and accessible transportation, access to community services
agencies, public facilities, and shopping;';
(A) by striking paragraph (4); and
(B) by redesignating paragraphs (5), (6), and (7) as paragraphs (4), (5),
and (6), respectively;
(7) in subsection (l) (as so redesignated by section 4(1) of this Act)--
(A) in paragraph (1), by inserting before the period at the end of the
first sentence the following: `, which provides a separate bedroom for
each tenant of the residence';
(B) by striking paragraph (2) and inserting the following:
`(2)(A) The term `person with disabilities' means a person who is 18 years
of age or older and less than 62 years of age, who--
`(i) has a disability as defined in section 223 of the Social Security
Act,
`(ii) is determined, pursuant to regulations issued by the Secretary,
to have a physical, mental, or emotional impairment which--
`(I) is expected to be of long-continued and indefinite duration;
`(II) substantially impedes his or her ability to live independently;
and
`(III) is of such a nature that such ability could be improved by more
suitable housing conditions; or
`(iii) has a developmental disability as defined in section 102 of the
Developmental Disabilities Assistance and Bill of Rights Act of 2000.
`(B) Such term shall not exclude persons who have the disease of acquired
immunodeficiency syndrome or any conditions arising from the etiologic agent
for acquired immunodeficiency syndrome. Notwithstanding any other provision
of law, no individual shall be considered a person with disabilities, for
purposes of eligibility for low-income housing under this title, solely
on the basis of any drug or alcohol dependence. The Secretary shall consult
with other appropriate Federal agencies to implement the preceding sentence.
`(C) The Secretary shall prescribe such regulations as may be necessary
to prevent abuses in determining, under the definitions contained in this
paragraph, the eligibility of families and persons for admission to and
occupancy of housing assisted under this section. Notwithstanding the preceding
provisions of this paragraph, the term `person with disabilities' includes
two or more persons with disabilities living together, one or more such
persons living with another person who is determined (under regulations
prescribed by the Secretary) to be important to their care or well-being,
and the surviving member or members of any household described in subparagraph
(A) who were living, in a unit assisted under this section, with the deceased
member of the household at the time of his or her death.';
(C) by striking paragraph (3) and inserting the following new paragraph:
`(3) The term `supportive housing for persons with disabilities' means dwelling
units that--
`(A) are designed to meet the permanent housing needs of very low-income
persons with disabilities; and
`(B) are located in housing that make available supportive services that
address the individual health, mental health, or other needs of such persons.';
(D) in paragraph (5), by striking `a project for'; and
(i) by inserting after and below subparagraph (D) the matter to be inserted
by the amendment made by section 841 of the American Homeownership and
Economic Opportunity Act of 2000 (Public Law 106-569; 114 Stat. 3022);
and
(ii) in the matter inserted by the amendment made by subparagraph (A)
of this paragraph, by striking `wholly owned and'; and
(8) in subsection (m) (as so redesignated by section 4(1) of this Act)--
(A) in paragraph (2), by striking `subsection (c)(1)' and inserting `subsection
(d)(1)'; and
(B) in paragraph (3), by striking `subsection (c)(2)' and inserting `subsection
(d)(2)'.
SEC. 6. AUTHORIZATION OF APPROPRIATIONS.
Subsection (n) of section 811 (as so redesignated by section 4(1) of this
Act) is amended to read as follows:
`(n) Authorization of Appropriations- There is authorized to be appropriated
for each of fiscal years 2008 through 2012 the following amounts:
`(1) CAPITAL ADVANCE/PRAC PROGRAM- For providing assistance pursuant to
subsection (b), such sums as may be necessary.
`(2) DEMONSTRATION PROGRAM- For carrying out the demonstration program under
subsection (k), such sums as may be necessary to provide 2,500 incremental
dwelling units under such program in each of fiscal years 2008 and 2009
and 5,000 incremental dwelling units under such program in each of fiscal
years 2010, 2011, and 2012.'.
SEC. 7. NEW REGULATIONS AND PROGRAM GUIDANCE.
Not later than the expiration of the 180-day period beginning on the date
of the enactment of this Act, the Secretary of Housing and Urban Development
shall issue new regulations and guidance for the program under section 811
of the Cranston-Gonzalez National Affordable Housing Act for supportive housing
for persons with disabilities to carry out such program in accordance with
the amendments made by this Act.
END
