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STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
(Senate - June 15, 2000)

Text of this article available as: TXT PDF [Pages S5241-S5272] STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS By Mr. GRAMM: S. 2732. A bill to ensure that all States participating in the National Boll Weevil Eradication Program are treated equitably; to the Committee on Agriculture, Nutrition, and Forestry. the boll weevil eradication equity act Mr. GRAMM. Mr. President, today I am introducing the Boll Weevil Eradication Equity Act. Boll weevil infestation has caused more than $15 billion worth of damage to the United States cotton crop, and the nation's cotton producers lose $300 million annually. Texas is the largest cotton producing state in the nation, yet the scope of this problem extends beyond Texas. The ability of all states to eradicate this pest would stop future migration to boll weevil-free areas and prevent reintroduction of the boll weevil into those areas which have already completed a successful eradication effort. We must continue to build upon the past success of the existing program that authorizes the Animal and Plant Health Inspection Service of the United States Department of Agriculture to join with individual states and provide technical assistance and federal cost-share funds. This highly successful partnership has resulted in complete boll weevil eradication in California, Florida, Arizona, Alabama, Georgia, Virginia and North Carolina. These states received an average federal cost-share of 26.9 percent, with producers and individual states paying the remaining cost. Since 1994, however, the program has expanded into Texas, Mississippi, Arkansas, Louisiana, Tennessee, Oklahoma and New Mexico, but the federal appropriation has remained relatively constant. The addition of this vast acreage has resulted in dramatically reducing the federal cost share to only 4 percent, leaving producers and individual states to fund the remaining 96 percent. This is not fair to the states now participating in the program because federal matching funds to the states enrolled in the early years of the program constituted almost 30 percent of eradication costs. The National Cotton Council estimates that for every $1 spent on eradication, cotton farmers will accrue about $12 in benefits. The bill I am introducing today will authorize a federal cost share contribution of not less than 26.9 percent to the states and producers which still must contend with boll weevil infestation. I urge my colleagues to join this effort to ensure that these producers receive no less support than that which was provided during the earlier stages of the program. I ask unanimous consent that the text of the bill be printed in the Record. There being no objection, the bill was ordered to be printed in the Record, as follows: S. 2732 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Boll Weevil Eradication Equity Act''. SEC. 2. FINDINGS. Congress finds that-- (1) as of the date of enactment of this Act, infestation by Anthonomus grandis (commonly known as the ``boll weevil'') has caused more than $15,000,000,000 in damage to cotton crops of the United States and costs cotton producers in the United States approximately $300,000,000 annually; (2) through the National Boll Weevil Eradication Program (referred to in this Act as the ``program''), the Animal and Plant Health Inspection Service of the Department of Agriculture partners with producers to provide technical assistance and Federal cost share funds to States in an effort to eradicate the boll weevil; (3) States that enrolled in the program before 1994 have since been able to complete boll weevil eradication and were provided a Federal cost share that accounted for an average of 26.9 percent of the total cost of eradication; (4) States that enrolled in the program in or after 1994 account for 65 percent of the national cotton acreage and are now provided an average Federal cost share of only 4 percent, placing a tremendous financial burden on the individual producers; (5) the addition of vast acreage into the program has resulted in an increased need for Federal cost share funds; (6) a producer that participates in the program today deserves not less than the same level of commitment that was provided to producers that enrolled in the program before 1994; and (7) the ability of all States to eradicate the boll weevil would prevent further migration of the boll weevil to boll weevil-free areas and reintroduction of the boll weevil in those areas having completed boll weevil eradication. SEC. 3. BOLL WEEVIL ERADICATION ASSISTANCE. (a) In General.--Notwithstanding any other provision of law, the Secretary of Agriculture shall provide funds to pay at least 26.9 percent of the total program costs incurred by producers participating in the program. (b) Authorization of Appropriations.--There are authorized to be appropriated to carry out this Act such sums as are necessary for fiscal years 2001 through 2004. ______ By Mr. SANTORUM (for himself and Mr. Sarbanes): S. 2733. A bill to provide for the preservation of assisted housing for low income elderly persons, disabled persons, and other families; to the Committee on Banking, Housing, and Urban Affairs. affordable housing for seniors and families act Mr. SANTORUM. Mr. President, I rise with great pride to introduce the Affordable Housing for Seniors and Families Act. I am very pleased to say that Senator Kerry of Massachusetts and Senator Sarbanes are original cosponsors of this bill. Even as our national economy flourishes, many Americans are struggling to find safe, decent, sanitary, affordable housing. HUD estimates that 5.4 million families are either paying over half of their incomes for rent or living in substandard housing. Of these households, 1.4 million, or 26%, are elderly or disabled. The scarcity of affordable housing is particularly troubling for seniors and the disabled who may require special structural accommodations in their homes. As Vice Chairman of the Subcommittee on Housing and Transportation, and as a member of the Aging Committee, I feel a heightened sense of urgency in helping these special populations find housing. Thus, I am pleased to offer a bill which: reauthorizes federal funding for elderly and disabled housing programs; expands supportive housing opportunities for these special populations; codifies options to enhance the financial viability of the projects; assists sponsors in offering a ``continuum of care'' that allows people to live independently and with dignity; offers incentives to preserve the stock of affordable housing that is at risk of loss due to prepayment, Section 8 opt-out, or deterioration; and modernizes current laws allowing the FHA to insure mortgages on hospitals, assisted living facilities, and nursing homes. Together, I believe these measures will help to fill the critical housing needs of elderly and disabled families. On September 27, 1999, the House of Representatives overwhelmingly approved the Preserving Affordable Housing for Senior Citizens in the 21st Century Act (H.R. 202) by a vote of 405-5. [[Page S5242]] Several aspects of H.R. 202, which protected residents in the event that their landlords did not renew their project based Section 8 contracts, were included in the FY 2000 VA-HUD appropriations bill. The legislation I offer today is modeled on the House-passed bill, without the preservation provisions that have already been enacted. I would like to take a few moments to highlight the major provisions of this bill. The Section 202 elderly housing program and the Section 811 disabled housing program each provide crucial affordable housing for very low- income individuals, whose incomes are 50 percent or below of the area median income. By law, sponsors, or owners, of Section 202 or Section 811 housing must be non-profit organizations. Many sponsors are faith- based. The Affordable Housing for Seniors and Families Act will increase the stock of Section 202 and 811 housing in several ways. First, it reauthorizes funding for Section 202 and 811 housing programs in the amount of $700 million and $225 million, respectively, in FY 01. Such sums as are necessary are authorized for FY 02 through FY 04. Second, it creates an optional matching grant program that will enable sponsors to leverage additional money for construction. Third, it allows Section 202 housing sponsors to buy new properties. This legislation also codifies options giving owners financial flexibility to use sources of income besides the Section 202 and Section 811 funds. For instance, by requiring HUD to approve prepayment of the 202 mortgages, this bill allows sponsors to build equity in their projects, which can be used to leverage funding for capital improvements or services for tenants. It gives sponsors maximum flexibility to use all sources of financing, including federal money, for construction, amenities, and relevant design features. In order to raise additional outside revenue and offer a convenience to tenants, owners are permitted to rent space to commercial facilities. In the cases of both Section 202 and 811 housing, owners may use their project reserves to retrofit or modernize obsolete or unmarketable units. Finally, this bill allows project sponsors to form limited partnerships with for-profit entities. Through such a partnership, sponsors can also compete for the Low Income Housing Tax Credit, and build larger developments. The importance of providing a ``continuum of care'' for seniors and disabled persons to continue living independently is addressed in the Affordable Housing for Seniors and Families Act. For example, this bill helps seniors stay in their apartments as they become older and more frail by authorizing competitive grants for conversion of elderly housing and public housing projects designated for occupancy by elderly persons to assisted living facilities. Responding to obstacles the handicapped face in finding special-needs housing, it allows private non-profits to administer tenant-based rental assistance for the disabled. It also ensures that funding will continue to be invested in building housing for the disabled by limiting funding for tenant-based assistance under the Section 811 program to 25% of the program's appropriation. Funding for service coordinators, who link residents with supportive or medical services in the community, is authorized through FY 04. Moreover, service coordinators are permitted to assist low-income elderly or disabled families in the vicinity of their projects. Seniors who live in their own houses will be assisted by a provision in Title V which allows them to maximize the equity in their homes by streamlining the process of refinancing an existing federal- insured reverse mortgage. Title IV of this legislation focuses on preserving the existing stock of federally assisted properties as affordable housing for low and very low-income families. Each year, 100,000 low-cost apartments across the country are demolished, abandoned, or converted to market rate use. For every 100 extremely low-income households, having 30% or less of area median income, only 36 units were both affordable and available. Even in rural areas, the potential loss of assisted, affordable housing is very real due to prepayment of mortgages, opt-out of assisted housing programs upon contract expirations, frustration with government bureaucracy, or simply a recognition that the building would be more profitable as market-rate housing. Title IV responds with a matching grant program to assist state and local governments who are devoting their own money to affordable housing preservation. Likewise, it authorizes a competitive grant program to assist nonprofits in buying federally assisted property. Current law allowing the Federal Housing Administration (FHA) to insure mortgages on hospitals, nursing homes, and assisted living facilities has become outdated. Title V modernizes the law and removes barriers to using FHA insurance for such facilities. Likewise, it recognizes the integrated nature of healthcare by allowing the FHA to provide mortgage insurance for ``integrated service facilities,'' such as ambulatory care centers, which treat sick, injured, disabled, elderly, or infirm persons. Mr. President, I urge my colleagues to cosponsor this important bipartisan legislation. In closing, I would like to express my gratitude to Senator Kerry for working closely with me on this important legislation. I also would like to thank Senator Sarbanes for his cosponsorship. Mr. President, I ask unanimous consent that the text of the bill be printed in the Record. There being no objection, the bill was ordered to be printed in the Record, as follows: S. 2733 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 ``Affordable Housing for Seniors and Families Act''. (b) Table of Contents.--The table of contents for this Act is as follows: Sec. 1. Short title and table of contents. Sec. 2. Regulations. Sec. 3. Effective date. TITLE I--REFINANCING FOR SECTION 202 SUPPORTIVE HOUSING FOR THE ELDERLY Sec. 101. Prepayment and refinancing. TITLE II--AUTHORIZATION OF APPROPRIATIONS FOR SUPPORTIVE HOUSING FOR THE ELDERLY AND PERSONS WITH DISABILITIES Sec. 201. Supportive housing for elderly persons. Sec. 202. Supportive housing for persons with disabilities. Sec. 203. Service coordinators and congregate services for elderly and disabled housing. TITLE III--EXPANDING HOUSING OPPORTUNITIES FOR THE ELDERLY AND PERSONS WITH DISABILITIES Subtitle A--Housing for the Elderly Sec. 301. Matching grant program. Sec. 302. Eligibility of for-profit limited partnerships. Sec. 303. Mixed funding sources. Sec. 304. Authority to acquire structures. Sec. 305. Mixed-income occupancy. Sec. 306. Use of project reserves. Sec. 307. Commercial activities. Sec. 308. Mixed finance pilot program. Sec. 309. Grants for conversion of elderly housing to assisted living facilities. Sec. 310. Grants for conversion of public housing projects to assisted living facilities. Sec. 311. Annual HUD inventory of assisted housing designated for elderly persons. Sec. 312. Treatment of applications. Subtitle B--Housing for Persons With Disabilities Sec. 321. Matching grant program. Sec. 322. Eligibility of for-profit limited partnerships. Sec. 323. Mixed funding sources. Sec. 324. Tenant-based assistance. Sec. 325. Use of project reserves. Sec. 326. Commercial activities. Subtitle C--Other Provisions Sec. 341. Service coordinators. TITLE IV--PRESERVATION OF AFFORDABLE HOUSING STOCK Sec. 401. Matching grant program for affordable housing preservation. Sec. 402. Assistance for nonprofit purchasers preserving affordable housing. Sec. 403. Section 236 assistance. Sec. 404. Preservation projects. TITLE V--MORTGAGE INSURANCE FOR HEALTH CARE FACILITIES AND HOME EQUITY CONVERSION MORTGAGES Sec. 501. Rehabilitation of existing hospitals, nursing homes, and other facilities. Sec. 502. New integrated service facilities. Sec. 503. Hospitals and hospital-based integrated service facilities. Sec. 504. Home equity conversion mortgages. SEC. 2. REGULATIONS. The Secretary of Housing and Urban Development (referred to in this Act as the ``Secretary'') shall issue any regulations to carry [[Page S5243]] out this Act and the amendments made by this Act that the Secretary determines may or will affect tenants of federally assisted housing only after notice and opportunity for public comment in accordance with the procedure under section 553 of title 5, United States Code, applicable to substantive rules (notwithstanding subsections (a)(2), (b)(B), and (d)(3) of such section). Notice of such proposed rulemaking shall be provided by publication in the Federal Register. In issuing such regulations, the Secretary shall take such actions as may be necessary to ensure that such tenants are notified of, and provided an opportunity to participate in, the rulemaking, as required by such section 553. SEC. 3. EFFECTIVE DATE. (a) In General.--The provisions of this Act and the amendments made by this Act are effective as of the date of enactment of this Act, unless such provisions or amendments specifically provide for effectiveness or applicability upon another date certain. (b) Effect of Regulatory Authority.--Any authority in this Act or the amendments made by this Act to issue regulations, and any specific requirement to issue regulations by a date certain, may not be construed to affect the effectiveness or applicability of the provisions of this Act or the amendments made by this Act under such provisions and amendments and subsection (a) of this section. TITLE I--REFINANCING FOR SECTION 202 SUPPORTIVE HOUSING FOR THE ELDERLY SEC. 101. PREPAYMENT AND REFINANCING. (a) Approval of Prepayment of Debt.--Upon request of the project sponsor of a project assisted with a loan under section 202 of the Housing Act of 1959 (as in effect before the enactment of the Cranston-Gonzalez National Affordable Housing Act), the Secretary shall approve the prepayment of any indebtedness to the Secretary relating to any remaining principal and interest under the loan as part of a prepayment plan under which-- (1) the project sponsor agrees to operate the project until the maturity date of the original loan under terms at least as advantageous to existing and future tenants as the terms required by the original loan agreement or any rental assistance payments contract under section 8 of the United States Housing Act of 1937 (or any other rental housing assistance programs of the Department of Housing and Urban Development, including the rent supplement program under section 101 of the Housing and Urban Development Act of 1965 (12 U.S.C. 1701s)) relating to the project; and (2) the prepayment may involve refinancing of the loan if such refinancing results in a lower interest rate on the principal of the loan for the project and in reductions in debt service related to such loan. (b) Sources of Refinancing.--In the case of prepayment under this section involving refinancing, the project sponsor may refinance the project through any third party source, including financing by State and local housing finance agencies, use of tax-exempt bonds, multi-family mortgage insurance under the National Housing Act, reinsurance, or other credit enhancements, including risk sharing as provided under section 542 of the Housing and Community Development Act of 1992 (12 U.S.C. 1707 note). For purposes of underwriting a loan insured under the National Housing Act, the Secretary may assume that any section 8 rental assistance contract relating to a project will be renewed for the term of such loan. (c) Use of Unexpended Amounts.--Upon execution of the refinancing for a project pursuant to this section, the Secretary shall make available at least 50 percent of the annual savings resulting from reduced section 8 or other rental housing assistance contracts in a manner that is advantageous to the tenants, including-- (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; (2) rehabilitation, modernization, or retrofitting of structures, common areas, or individual dwelling units; (3) construction of an addition or other facility in the project, including assisted living facilities (or, upon the approval of the Secretary, facilities located in the community where the project sponsor refinances a project under this section, or pools shared resources from more than 1 such project); or (4) rent reduction of unassisted tenants residing in the project according to a pro rata allocation of shared savings resulting from the refinancing. (d) Use of Certain Project Funds.--The Secretary shall allow a project sponsor that is prepaying and refinancing a project under this section-- (1) to use any residual receipts held for that project in excess of $500 per individual dwelling unit for not more than 15 percent of the cost of activities designed to increase the availability or provision of supportive services; and (2) to use any reserves for replacement in excess of $1,000 per individual dwelling unit for activities described in paragraphs (2) and (3) of subsection (c). (e) Budget Act Compliance.--This section shall be effective only to extent or in such amounts that are provided in advance in appropriation Acts. TITLE II--AUTHORIZATION OF APPROPRIATIONS FOR SUPPORTIVE HOUSING FOR THE ELDERLY AND PERSONS WITH DISABILITIES SEC. 201. SUPPORTIVE HOUSING FOR ELDERLY PERSONS. Section 202 of the Housing Act of 1959 (12 U.S.C. 1701q) is amended by adding at the end the following: ``(m) Authorization of Appropriations.--There is authorized to be appropriated for providing assistance under this section $700,000,000 for fiscal year 2001 and such sums as may be necessary for each of fiscal years 2002, 2003, and 2004. Of the amount provided in appropriation Acts for assistance under this section in each such fiscal year, 5 percent shall be available only for providing assistance in accordance with the requirements under subsection (c)(4) (relating to matching funds), except that if there are insufficient eligible applicants for such assistance, any amount remaining shall be used for assistance under this section.''. SEC. 202. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES. Section 811 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013) is amended by striking subsection (m) and inserting the following: ``(m) Authorization of Appropriations.--There is authorized to be appropriated for providing assistance under this section $225,000,000 for fiscal year 2001 and such sums as may be necessary for each of fiscal years 2002, 2003, and 2004. Of the amount provided in appropriation Acts for assistance under this section in each such fiscal year, 5 percent shall be available only for providing assistance in accordance with the requirements under subsection (d)(5) (relating to matching funds), except that if there are insufficient eligible applicants for such assistance, any amount remaining shall be used for assistance under this section.''. SEC. 203. SERVICE COORDINATORS AND CONGREGATE SERVICES FOR ELDERLY AND DISABLED HOUSING. There is authorized to be appropriated to the Secretary $50,000,000 for fiscal year 2001, and such sums as may be necessary for each of fiscal years 2002, 2003, and 2004, for the following purposes: (1) Grants for service coordinators for certain federally assisted multifamily housing.--For grants under section 676 of the Housing and Community Development Act of 1992 (42 U.S.C. 13632) for providing service coordinators. (2) Congregate services for federally assisted housing.-- For contracts under section 802 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8011) to provide congregate services programs for eligible residents of eligible housing projects under subparagraphs (B) through (D) of subsection (k)(6) of such section. TITLE III--EXPANDING HOUSING OPPORTUNITIES FOR THE ELDERLY AND PERSONS WITH DISABILITIES Subtitle A--Housing for the Elderly SEC. 301. MATCHING GRANT PROGRAM. Section 202 of the Housing Act of 1959 (12 U.S.C. 1701q) is amended-- (1) in subsection (b), in the second sentence, by inserting ``or through matching grants under subsection (c)(4)'' after ``subsection (c)(1)''; and (2) in subsection (c), by adding at the end the following: ``(4) Matching grants.-- ``(A) In general.-- ``(i) 15 percent minimum.--Amounts made available for assistance under this paragraph shall be used only for capital advances in accordance with paragraph (1), except that the Secretary shall require that, as a condition of providing assistance under this paragraph for a project, the applicant for assistance shall supplement the assistance with amounts from sources other than this section in an amount that is not less than 15 percent of the amount of assistance provided pursuant to this paragraph for the project. ``(ii) Preference.--In providing assistance under this paragraph, the Secretary shall take into consideration the degree to which the applicant will supplement that assistance with amounts from sources other than this section and, all other factors being equal, shall give preference to applicants whose supplemental assistance is equal to the highest percentage of the amount of assistance provided pursuant to this paragraph for the project. ``(B) Requirement for non-federal funds.--Not less than 50 percent of supplemental amounts provided for a project pursuant to subparagraph (A) shall be from non-Federal sources. Such supplemental amounts may include the value of any in-kind contributions, including donated land, structures, equipment, and other contributions as the Secretary considers appropriate, but only if the existence of such in-kind contributions results in the construction of more dwelling units than would have been constructed absent such contributions. ``(C) Income eligibility.--Notwithstanding any other provision of this section, the Secretary shall provide that, in a project assisted under this paragraph, a number of dwelling units may be made available for occupancy by elderly persons who are not very low-income persons in a number such that the ratio that the number of dwelling units in the project so occupied bears to the total number of units in the project does not exceed the ratio that the amount from non- Federal sources provided for the project pursuant to this paragraph bears to the sum of the capital advances provided for the project [[Page S5244]] under this paragraph and all supplemental amounts for the project provided pursuant to this paragraph.''. SEC. 302. ELIGIBILITY OF FOR-PROFIT LIMITED PARTNERSHIPS. Section 202(k)(4) of the Housing Act of 1959 (12 U.S.C. 1701q(k)(4)) is amended by inserting after subparagraph (C) the following: ``Such term includes a for-profit limited partnership the sole general partner of which is an organization meeting the requirements under subparagraphs (A), (B), and (C), or a corporation wholly owned and controlled by an organization meeting the requirements under subparagraphs (A), (B), and (C).''. SEC. 303. MIXED FUNDING SOURCES. Section 202(h)(6) of the Housing Act of 1959 (12 U.S.C. 1701q(h)(6)) is amended by striking ``non-Federal sources'' and inserting ``sources other than this section''. SEC. 304. AUTHORITY TO ACQUIRE STRUCTURES. Section 202 of the Housing Act of 1959 (12 U.S.C. 1701q) is amended-- (1) in subsection (b), by striking ``from the Resolution Trust Corporation''; and (2) in subsection (h)(2)-- (A) in the paragraph heading, by striking ``RTC properties'' and inserting ``Acquisition''; and (B) by striking ``from the Resolution'' and all that follows through ``Insurance Act''. SEC. 305. MIXED-INCOME OCCUPANCY. (a) In General.--The first sentence of section 202(i)(1) of the Housing Act of 1959 (12 U.S.C. 1701q(i)(1)) is amended by striking ``and (B)'' and inserting the following: ``(B) notwithstanding subparagraph (A) and in the case only of a supportive housing project for the elderly that has a high vacancy level (as defined by the Secretary, except that such term shall not include vacancy upon the initial availability of units in a building), consistent with the purpose of improving housing opportunities for very low- and low-income elderly persons; and (C).''. (b) Availability of Units.--Section 202(i) of the Housing Act of 1959 (12 U.S.C. 1701q(i)) is amended by adding at the end the following: ``(3) Availability of units.--In the case of a supportive housing project described in paragraph (1)(B) that has a vacant dwelling unit, an owner may not make a dwelling unit available for occupancy by, nor make any commitment to provide occupancy in the unit to-- ``(A) a low-income family that is not a very low-income family unless each eligible very low-income family that has applied for occupancy in the project has been offered an opportunity to accept occupancy in a unit in the project; and ``(B) a low-income elderly person who is not a very low- income elderly person, unless the owner certifies to the Secretary that the owner has engaged in affirmative marketing and outreach to very low-income elderly persons.''. (b) Conforming Amendments.--Section 202 of the Housing Act of 1959 (12 U.S.C. 1701q) is amended-- (1) in subsection (c)-- (A) in paragraph (1), by inserting before ``in accordance with this section'' the following: ``, and for low-income elderly persons to the extent such occupancy is made available pursuant to subsection (i)(1)(B),''; (B) in the first sentence of paragraph (2), by inserting after ``elderly persons'' the following: ``or by low-income elderly persons (to the extent such occupancy is made available pursuant to subsection (i)(1)(B))''; and (C) in paragraph (3), by inserting after ``very low-income person'' the following: ``or a low-income person (to the extent such occupancy is made available pursuant to subsection (i)(1)(B))''; (2) in subsection (d)(1), by inserting after ``elderly persons'' the following: ``, and low-income elderly persons to the extent such occupancy is made available pursuant to subsection (i)(1)(B),''; and (3) in subsection (k)-- (A) by redesignating paragraphs (3) through (8) as paragraphs (4) through (9), respectively; and (B) by inserting after paragraph (2) the following: ``(3) Low-income.--The term `low-income' has the meaning given the term `low-income families' under section 3(b)(2) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)(2)).''. SEC. 306. USE OF PROJECT RESERVES. Section 202(j) of the Housing Act of 1959 (12 U.S.C. 1701q(j)) is amended by adding at the end the following: ``(8) Use of project reserves.--Amounts for project reserves for a project assisted under this section may be used for costs, subject to reasonable limitations as the Secretary determines appropriate, for reducing the number of dwelling units in the project. Such use shall be subject to the approval of the Secretary to ensure that the use is designed to retrofit units that are currently obsolete or unmarketable.''. SEC. 307. COMMERCIAL ACTIVITIES. Section 202(h)(1) of the Housing Act of 1959 (12 U.S.C. 1701q(h)(1)) is amended by adding at the end the following: ``Neither this section nor any other provision of law may be construed as prohibiting or preventing the location and operation, in a project assisted under this section, of commercial facilities for the benefit of residents of the project and the community in which the project is located, except that assistance made available under this section may not be used to subsidize any such commercial facility.''. SEC. 308. MIXED FINANCE PILOT PROGRAM. (a) Authority.--The Secretary shall carry out a pilot program under this section to determine the effectiveness and feasibility of providing assistance under section 202 of the Housing Act of 1959 (12 U.S.C. 1701q) for housing projects that are used both for supportive housing for the elderly and for other types of housing, which may include market rate housing. (b) Scope.--Under the pilot program the Secretary shall provide, to the extent that sufficient approvable applications for such assistance are received, assistance in the manner provided under subsection (d) for not more than 5 housing projects. (c) Mixed Use.--The Secretary shall, for a project to be assisted under the pilot program-- (1) require that a minimum number of the dwelling units in the project be reserved for use in accordance with, and subject to, the requirements applicable to units assisted under section 202 of the Housing Act of 1959, such that the ratio that the number of dwelling units in the project so reserved bears to the total number of units in the project is not less than the ratio that the amount of assistance from such section 202 used for the project pursuant to subsection (d) bears to the total amount of assistance provided for the project under this section; and (2) provide that the remainder of the dwelling units in the project may be used for assistance to persons who are not very low-income. (d) Financing.--The Secretary may use amounts provided for assistance under section 202 of the Housing Act of 1959 for assistance under the pilot program for capital advances in accordance with subsection (c)(1) of such section and project rental assistance in accordance with subsection (c)(2) of such section, only for dwelling units described in subsection (c)(1) of this section. Any assistance provided pursuant to subsection (c)(1) of such section 202 shall be provided in the form of a capital advance, subject to repayment as provided in such subsection, and shall not be structured as a loan. The Secretary shall take such action as may be necessary to ensure that the repayment contingency under such subsection is enforceable for projects assisted under the pilot program and to provide for appropriate protections of the interests of the Secretary in relation to other interests in the projects so assisted. (e) Report.--Not later than 2 years after assistance is initially made available under the pilot program under this section, the Secretary shall submit to Congress a report on the results of the pilot program. SEC. 309. GRANTS FOR CONVERSION OF ELDERLY HOUSING TO ASSISTED LIVING FACILITIES. Title II of the Housing Act of 1959 is amended by inserting after section 202a (12 U.S.C. 1701q-1) the following: ``SEC. 202B. GRANTS FOR CONVERSION OF ELDERLY HOUSING TO ASSISTED LIVING FACILITIES. ``(a) Grant Authority.--The Secretary of Housing and Urban Development may make grants in accordance with this section to owners of eligible projects described in subsection (b) for 1 or both of the following activities: ``(1) Repairs.--Substantial capital repairs to a project that are needed to rehabilitate, modernize, or retrofit aging structures, common areas, or individual dwelling units. ``(2) Conversion.--Activities designed to convert dwelling units in the eligible project to assisted living facilities for elderly persons. ``(b) Eligible Projects.-- ``(1) In general.--An eligible project described in this subsection is a multifamily housing project that is-- ``(A) described in subparagraph (B), (C), (D), (E), (F), or (G) of section 683(2) of the Housing and Community Development Act of 1992 (42 U.S.C. 13641(2)), or (B) only to the extent amounts of the Department of Agriculture are made available to the Secretary of Housing and Urban Development for such grants under this section for such projects, subject to a loan made or insured under section 515 of the Housing Act of 1949 (42 U.S.C. 1485); ``(B) owned by a private nonprofit organization (as such term is defined in section 202); and ``(C) designated primarily for occupancy by elderly persons. ``(2) Unused or underutilized commercial property.-- Notwithstanding any other provision of this subsection or this section, an unused or underutilized commercial property may be considered an eligible project under this subsection, except that the Secretary may not provide grants under this section for more than 3 such properties. For any such projects, any reference under this section to dwelling units shall be considered to refer to the premises of such properties. ``(c) Applications.--Applications for grants under this section shall be submitted to the Secretary in accordance with such procedures as the Secretary shall establish. Such applications shall contain-- ``(1) a description of the substantial capital repairs or the proposed conversion activities for which a grant under this section is requested; ``(2) the amount of the grant requested to complete the substantial capital repairs or conversion activities; ``(3) a description of the resources that are expected to be made available, if any, in conjunction with the grant under this section; and [[Page S5245]] ``(4) such other information or certifications that the Secretary determines to be necessary or appropriate. ``(d) Funding for Services.--The Secretary may not make a grant under this section for conversion activities unless the application contains sufficient evidence, in the determination of the Secretary, of firm commitments for the funding of services to be provided in the assisted living facility, which may be provided by third parties. ``(e) Selection Criteria.--The Secretary shall select applications for grants under this section based upon selection criteria, which shall be established by the Secretary and shall include-- ``(1) in the case of a grant for substantial capital repairs, the extent to which the project to be repaired is in need of such repair, including such factors as the age of improvements to be repaired, and the impact on the health and safety of residents of failure to make such repairs; ``(2) in the case of a grant for conversion activities, the extent to which the conversion is likely to provide assisted living facilities that are needed or are expected to be needed by the categories of elderly persons that the assisted living facility is intended to serve, with a special emphasis on very low-income elderly persons who need assistance with activities of daily living; ``(3) the inability of the applicant to fund the repairs or conversion activities from existing financial resources, as evidenced by the applicant's financial records, including assets in the applicant's residual receipts account and reserves for replacement account; ``(4) the extent to which the applicant has evidenced community support for the repairs or conversion, by such indicators as letters of support from the local community for the repairs or conversion and financial contributions from public and private sources; ``(5) in the case of a grant for conversion activities, the extent to which the applicant demonstrates a strong commitment to promoting the autonomy and independence of the elderly persons that the assisted living facility is intended to serve; ``(6) in the case of a grant for conversion activities, the quality, completeness, and managerial capability of providing the services which the assisted living facility intends to provide to elderly residents, especially in such areas as meals, 24-hour staffing, and on-site health care; and ``(7) such other criteria as the Secretary determines to be appropriate to ensure that funds made available under this section are used effectively. ``(f) Definitions.--In this section-- ``(1) the term `assisted living facility' has the meaning given such term in section 232(b) of the National Housing Act (12 U.S.C. 1715w(b)); and ``(2) the definitions in section 202(k) shall apply. ``(g) Authorization of Appropriations.--There is authorized to be appropriated for providing grants under this section such sums as may be necessary for each of fiscal years 2001, 2002, 2003, and 2004.''. SEC. 310. GRANTS FOR CONVERSION OF PUBLIC HOUSING PROJECTS TO ASSISTED LIVING FACILITIES. Title I of the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended by adding at the end the following: ``SEC. 36. GRANTS FOR CONVERSION OF PUBLIC HOUSING TO ASSISTED LIVING FACILITIES. ``(a) Grant Authority.--The Secretary may make grants in accordance with this section to public housing agencies for use for activities designed to convert dwelling units in an eligible projects described in subsection (b) to assisted living facilities for elderly persons. ``(b) Eligible Projects.--An eligible project described in this subsection is a public housing project (or a portion thereof) that has been designated under section 7 for occupancy only by elderly persons. ``(c) Applications.--Applications for grants under this section shall be submitted to the Secretary in accordance with such procedures as the Secretary shall establish. Such applications shall contain-- ``(1) a description of the proposed conversion activities for which a grant under this section is requested; ``(2) the amount of the grant requested; ``(3) a description of the resources that are expected to be made available, if any, in conjunction with the grant under this section; and ``(4) such other information or certifications that the Secretary determines to be necessary or appropriate. ``(d) Funding for Services.--The Secretary may not make a grant under this section unless the application contains sufficient evidence, in the determination of the Secretary, of firm commitments for the funding of services to be provided in the assisted living facility. ``(e) Selection Criteria.--The Secretary shall select applications for grants under this section based upon selection criteria, which shall be established by the Secretary and shall include-- ``(1) the extent to which the conversion is likely to provide assisted living facilities that are needed or are expected to be needed by the categories of elderly persons that the assisted living facility is intended to serve; ``(2) the inability of the public housing agency to fund the conversion activities from existing financial resources, as evidenced by the agency's financial records; ``(3) the extent to which the agency has evidenced community support for the conversion, by such indicators as letters of support from the local community for the conversion and financial contributions from public and private sources; ``(4) extent to which the applicant demonstrates a strong commitment to promoting the autonomy and independence of the elderly persons that the assisted living facility is intended to serve; ``(5) the quality, completeness, and managerial capability of providing the services which the assisted living facility intends to provide to elderly residents, especially in such areas as meals, 24-hour staffing, and on-site health care; and ``(6) such other criteria as the Secretary determines to be appropriate to ensure that funds made available under this section are used effectively. ``(f) Definition.--In this section, the term `assisted living facility' has the meaning given such term in section 232(b) of the National Housing Act (12 U.S.C. 1715w(b)). ``(g) Authorization of Appropriations.--There is authorized to be appropriated for providing grants under this section such sums as may be necessary for each of fiscal years 2001, 2002, 2003, and 2004.''. SEC. 311. ANNUAL HUD INVENTORY OF ASSISTED HOUSING DESIGNATED FOR ELDERLY PERSONS. Subtitle D of title VI of the Housing and Community Development Act of 1992 (42 U.S.C. 13611 et seq.) is amended by adding at the end the following: ``SEC. 662. ANNUAL INVENTORY OF ASSISTED HOUSING DESIGNATED FOR ELDERLY PERSONS. ``(a) In General.--The Secretary shall establish and maintain, and on an annual basis shall update and publish, an inventory of housing that-- ``(1) is assisted under a program of the Department of Housing and Urban Development, including all federally assisted housing; and ``(2) is designated, in whole or in part, for occupancy by elderly families or disabled families, or both. ``(b) Contents.--The inventory required under this section shall identify housing described in subsection (a) and the number of dwelling units in such housing that-- ``(1) are in projects designated for occupancy only by elderly families; ``(2) are in projects designated for occupancy only by disabled families; ``(3) contain special features or modifications designed to accommodate persons with disabilities and are in projects designated for occupancy only by disabled families; ``(4) are in projects for which a specific percentage or number of the dwelling units are designated for occupancy only by elderly families; ``(5) are in projects for which a specific percentage or number of the dwelling units are designated for occupancy only by disabled families; and ``(6) are in projects designed for occupancy only by both elderly or disabled families. ``(c) Publication.--The Secretary shall annually publish the inventory required under this section in the Federal Register and shall make the inventory available to the public by posting on a World Wide Web site of the Department.''. SEC. 312. TREATMENT OF APPLICATIONS. Notwithstanding any other provision of law or any regulation of the Secretary, in the case of any denial of an application for assistance under section 202 of the Housing Act of 1959 (12 U.S.C. 1701q) for failure to timely provide information required by the Secretary, the Secretary shall notify the applicant of the failure and provide the applicant an opportunity to show that the failure was due to the failure of a third party to provide information under the control of the third party. If the applicant demonstrates, within a reasonable period of time after notification of such failure, that the applicant did not have such information but requested the timely provision of such information by the third party, the Secretary may not deny the application solely on the grounds of failure to timely provide such information. Subtitle B--Housing for Persons With Disabilities SEC. 321. MATCHING GRANT PROGRAM. Section 811 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013) is amended-- (1) in subsection (b)(2)(A), by inserting ``or through matching grants under subsection (d)(5)'' after ``subsection (d)(1)''; and (2) in subsection (d), by adding at the end the following: ``(5) Matching grants.-- ``(A) In general.-- ``(i) 15 percent minimum.--Amounts made available for assistance under this paragraph shall be used only for capital advances in accordance with paragraph (1), except that the Secretary shall require that, as a condition of providing assistance under this paragraph for a project, the applicant for assistance shall supplement the assistance with amounts from sources other than this section in an amount that is not less than 15 percent of the amount of assistance provided pursuant to this paragraph for the project. ``(ii) Preference.--In providing assistance under this paragraph, the Secretary shall take into consideration the degree to which the applicant will supplement that assistance with amounts from sources other than this section and, all other factors being equal, shall give preference to applicants whose supplemental assistance is equal to [[Page S5246]] the highest percentage of the amount of assistance provided pursuant to this paragraph for the project. ``(B) Requirement for non-federal funds.--Not less than 50 percent of supplemental amounts provided for a project pursuant to subparagraph (A) shall be from non-Federal sources. Such supplemental amounts may include the value of any in-kind contributions, including donated land, structures, equipment, and other contributions as the Secretary considers appropriate, but only if the existence of such in-kind contributions results in the construction of more dwelling units than would have been constructed absent such contributions. ``(C) Income eligibility.--Notwithstanding any other provision of this section, the Secretary shall provide that, in a project assisted under this paragraph, a number of dwelling units may be made available for occupancy by persons with disabilities who are not very low-income persons in a number such that the ration that the number of dwelling units in the project so occupied bears to the total number of units in the project does not exceed the ratio that the amount from non-Federal sources provided for the project pursuant to this paragraph bears to the sum of the capital advances provided for the project under this paragraph and all supplemental amounts for the project provided pursuant to this paragraph.''. SEC. 322. ELIGIBILITY OF FOR-PROFIT LIMITED PARTNERSHIPS. Section 811(k)(6) of the Housing Act of 1959 (42 U.S.C. 8013(k)(6)) is amended by inserting after subparagraph (D) the following: ``Such term includes a for-profit limited partnership the sole general partner of which is an organization meeting the requirements under subparagraphs (A), (B), (C), and (D) or a corporation wholly owned and controlled by an organization meeting the requirements under subparagraphs (A), (B), (C), and (D).''. SEC. 323. MIXED FUNDING SOURCES. Section 811(h)(5) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013(h)(5)) is amended by striking ``non-Federal sources'' and inserting ``sources other than this section''. SEC. 324. TENANT-BASED ASSISTANCE. Section 811 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013) is amended-- (1) in subsection (d), by striking paragraph (4) and inserting the following: ``(4) Tenant-based rental assistance.-- ``(A) Administering entities.--Tenant-based rental assistance provided under subsection (b)(1) may be provided only through a public housing agency that has submitted and had approved an plan under section 7(d) of the United States Housing Act of 1937 (42 U.S.C. 1437e(d)) that provides for such assistance, or through a private nonprofit organization. A public housing agency shall be eligible to apply under this section only for the purposes of providing such tenant-based rental assistance. ``(B) Program rules.--Tenant-based rental assistance under subsection (b)(1) shall be made available to eligible persons with disabilities and administered under the same rules that govern tenant-based rental assistance made available under section 8 of the United States Housing Act of 1937, except that the Secretary may waive or modify such rules, but only to the extent necessary to provide for administering such assistance under subsection (b)(1) through private nonprofit organizations rather than through public housing agencies. ``(C) Allocation of assistance.--In determining the amount of assistance provided under subsection (b)(1) for a private nonprofit organization or public housing agency, the Secretary shall consider the needs and capabilities of the organization or agency, in the case of a public housing agency, as described in the plan for the agency under section 7 of the United States Housing Act of 1937.''; and (2) in subsection (l)(1)-- (A) by striking ``subsection (b)'' and inserting ``subsection (b)(2)''; (B) by striking the last comma and all that follows through ``subsection (n)''; and (C) by adding at the end the following: ``Notwithstanding any other provision of this section, the Secretary may use not more than 25 percent of the total amounts made available for assistance under this section for any fiscal year for tenant-based rental assistance under subsection (b)(1) for persons with disabilities, and no authority of the Secretary to waive provisions of this section may be used to alter the percentage limitation under this sentence.''. SEC. 325. USE OF PROJECT RESERVES. Section 811(j) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013(j)) is amended by adding at the end the following: ``(7) Use of project reserves.--Amounts for project reserves for a project assisted under this section may be used for costs, subject to reasonable limitations as the Secretary determines appropriate, for reducing the number of dwelling units in the project. Such use shall be subject to the approval of the Secretary to ensure that the use is designed to retrofit units that are currently obsolete or unmarketable.''. SEC. 326. COMMERCIAL ACTIVITIES. Section 811(h)(1) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013(h)(1)) is amended by adding at the end the following: ``Neither this section nor any other provision of law may be construed as prohibiting or preventing the location and operation, in a project assisted under this section, of commercial facilities for the benefit of residents of the project and the community in which the project is located, except that assistance made available under this section may not be used to subsidize any such commercial facility.''. Subtitle C--Other Provisions SEC. 341. SERVICE COORDINATORS. (a) Increased Flexibility for Use of Service Coordinators in Certain Federally Assisted Housing.--Section 676 of the Housing and Community Development Act of 1992 (42 U.S.C. 13632) is amended-- (1) in the section heading, by striking ``MULTIFAMILY HOUSING ASSISTED UNDER NATIONAL HOUSING ACT'' and inserting ``CERTAIN FEDERALLY ASSISTED HOUSING''; (2) in subsection (a)-- (A) in the first sentence, by striking ``(E) and (F)'' and inserting ``(B), (C), (D), (E), (F), and (G)''; and (B) in the last sentence-- (i) by striking ``section 661'' and inserting ``section 671''; and (ii) by adding at the end the following: ``A service coordinator funded with a grant under this section for a project may provide services to low-income elderly or disabled families living in the vicinity of such project.''; (3) in subsection (d)-- (A) by striking ``(E) or (F)'' and inserting ``(B), (C), (D), (E), (F), or (G)''; and (B) by striking ``section 661'' and inserting ``section 671''; and (4) by striking subsection (c) and redesignating subsection (d) (as amended by paragraph (3) of this subsection) as subsection (c). (b) Requirement To Provide Service Coordinators.--Section 671 of the Housing and Community Development Act of 1992 (42 U.S.C. 13631) is amended-- (1) in the first sentence of subsection (a), by striking ``to carry out this subtitle pursuant to the amendments made by this subtitle'' and inserting the following: ``for providing service coordinators under this section''; (2) in subsection (d), by inserting ``)'' after ``section 683(2)''; and (3) by adding at the end following: ``(e) Services for Low-Income Elderly or Disabled Families Residing in Vicinity of Certain Projects.--To the extent only that this section applies to service coordinators for covered federally assisted housing described in subparagraphs (B), (C), (D), (E), (F), and (G) of section 683(2), any reference in this section to elderly or disabled residents of a project shall be construed to include low-income elderly or disabled families living in the vicinity of such project.''. (c) Protection Against Telemarketing Fraud.-- (1) Supportive housing for the elderly.--The first sentence of section 202(g)(1) of the Housing Act of 1959 (12 U.S.C. 1701q(g)(1)) is amended by striking ``and (F)'' and inserting the following: ``(F) providing education and outreach regarding telemarketing fraud, in accordance with the standards issued under section 671(f) of the Housing and Community Development Act of 1992 (42 U.S.C. 13631(f)); and (G)''. (2) Other federally assisted housing.--Section 671 of the Housing and Community Development Act of 1992 (42 U.S.C. 13631), as amended by subsection (b) of this section, is further amended-- (A) in the first sentence of subsection (c), by inserting after ``response,'' the following: ``education and outreach regarding telemarketing fraud in accordance with the standards issued under subsection (f),''; and (B) by adding at the end the following: ``(f) Protection Against Telemarketing Fraud.-- ``(1) In general.--The Secretary, in coordination with the Secretary of Health and Human Services, shall establish standards for service coordinators in federally assisted housing who are providing education and outreach to elderly persons residing in such housing regarding telemarketing fraud. The standards shall be designed to ensure that such education and outreach informs such elderly persons of the dangers of telemarketing fraud and facilitates the investigation and prosecution of telemarketers engaging in fraud against such residents. ``(2) Contents.--The standards established under this subsection shall require that any such education and outreach be provided in a manner that-- ``(A) informs such residents of-- ``(i) the prevalence of telemarketing fraud targeted against elderly persons; ``(ii) how telemarketing fraud works; ``(iii) how to identify telemarketing fraud; ``(iv) how to protect themselves against telemarketing fraud, including an explanation of the dangers of providing bank account, credit card, or other financial or personal information over the telephone to unsolicited callers; ``(v) how to report suspected attempts at telemarketing fraud; and ``(vi) their consumer protection rights under Federal law; ``(B) provides such other information as the Secretary considers necessary to protect such residents against fraudulent telemarketing; and ``(C) disseminates the information provided by appropriate means, and in determining such appropriate means, the Secretary shall consider on-site presentations at federally [[Page S5247]] assisted housing, public service announcements, a printed manual or pamphlet, an Internet website, and telephone outreach to residents whose names appear on `mooch lists' confiscated from fraudulent telemarketers.''. TITLE IV--PRESERVATION OF AFFORDABLE HOUSING STOCK SEC. 401. MATCHING GRANT PROGRAM FOR AFFORDABLE HOUSING PRESERVATION. (a) Findings and Purposes.-- (1) Findings.--Congress finds that-- (A) availability of low-income housing rental units has declined nationwide in the last several years;

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STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
(Senate - June 15, 2000)

Text of this article available as: TXT PDF [Pages S5241-S5272] STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS By Mr. GRAMM: S. 2732. A bill to ensure that all States participating in the National Boll Weevil Eradication Program are treated equitably; to the Committee on Agriculture, Nutrition, and Forestry. the boll weevil eradication equity act Mr. GRAMM. Mr. President, today I am introducing the Boll Weevil Eradication Equity Act. Boll weevil infestation has caused more than $15 billion worth of damage to the United States cotton crop, and the nation's cotton producers lose $300 million annually. Texas is the largest cotton producing state in the nation, yet the scope of this problem extends beyond Texas. The ability of all states to eradicate this pest would stop future migration to boll weevil-free areas and prevent reintroduction of the boll weevil into those areas which have already completed a successful eradication effort. We must continue to build upon the past success of the existing program that authorizes the Animal and Plant Health Inspection Service of the United States Department of Agriculture to join with individual states and provide technical assistance and federal cost-share funds. This highly successful partnership has resulted in complete boll weevil eradication in California, Florida, Arizona, Alabama, Georgia, Virginia and North Carolina. These states received an average federal cost-share of 26.9 percent, with producers and individual states paying the remaining cost. Since 1994, however, the program has expanded into Texas, Mississippi, Arkansas, Louisiana, Tennessee, Oklahoma and New Mexico, but the federal appropriation has remained relatively constant. The addition of this vast acreage has resulted in dramatically reducing the federal cost share to only 4 percent, leaving producers and individual states to fund the remaining 96 percent. This is not fair to the states now participating in the program because federal matching funds to the states enrolled in the early years of the program constituted almost 30 percent of eradication costs. The National Cotton Council estimates that for every $1 spent on eradication, cotton farmers will accrue about $12 in benefits. The bill I am introducing today will authorize a federal cost share contribution of not less than 26.9 percent to the states and producers which still must contend with boll weevil infestation. I urge my colleagues to join this effort to ensure that these producers receive no less support than that which was provided during the earlier stages of the program. I ask unanimous consent that the text of the bill be printed in the Record. There being no objection, the bill was ordered to be printed in the Record, as follows: S. 2732 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Boll Weevil Eradication Equity Act''. SEC. 2. FINDINGS. Congress finds that-- (1) as of the date of enactment of this Act, infestation by Anthonomus grandis (commonly known as the ``boll weevil'') has caused more than $15,000,000,000 in damage to cotton crops of the United States and costs cotton producers in the United States approximately $300,000,000 annually; (2) through the National Boll Weevil Eradication Program (referred to in this Act as the ``program''), the Animal and Plant Health Inspection Service of the Department of Agriculture partners with producers to provide technical assistance and Federal cost share funds to States in an effort to eradicate the boll weevil; (3) States that enrolled in the program before 1994 have since been able to complete boll weevil eradication and were provided a Federal cost share that accounted for an average of 26.9 percent of the total cost of eradication; (4) States that enrolled in the program in or after 1994 account for 65 percent of the national cotton acreage and are now provided an average Federal cost share of only 4 percent, placing a tremendous financial burden on the individual producers; (5) the addition of vast acreage into the program has resulted in an increased need for Federal cost share funds; (6) a producer that participates in the program today deserves not less than the same level of commitment that was provided to producers that enrolled in the program before 1994; and (7) the ability of all States to eradicate the boll weevil would prevent further migration of the boll weevil to boll weevil-free areas and reintroduction of the boll weevil in those areas having completed boll weevil eradication. SEC. 3. BOLL WEEVIL ERADICATION ASSISTANCE. (a) In General.--Notwithstanding any other provision of law, the Secretary of Agriculture shall provide funds to pay at least 26.9 percent of the total program costs incurred by producers participating in the program. (b) Authorization of Appropriations.--There are authorized to be appropriated to carry out this Act such sums as are necessary for fiscal years 2001 through 2004. ______ By Mr. SANTORUM (for himself and Mr. Sarbanes): S. 2733. A bill to provide for the preservation of assisted housing for low income elderly persons, disabled persons, and other families; to the Committee on Banking, Housing, and Urban Affairs. affordable housing for seniors and families act Mr. SANTORUM. Mr. President, I rise with great pride to introduce the Affordable Housing for Seniors and Families Act. I am very pleased to say that Senator Kerry of Massachusetts and Senator Sarbanes are original cosponsors of this bill. Even as our national economy flourishes, many Americans are struggling to find safe, decent, sanitary, affordable housing. HUD estimates that 5.4 million families are either paying over half of their incomes for rent or living in substandard housing. Of these households, 1.4 million, or 26%, are elderly or disabled. The scarcity of affordable housing is particularly troubling for seniors and the disabled who may require special structural accommodations in their homes. As Vice Chairman of the Subcommittee on Housing and Transportation, and as a member of the Aging Committee, I feel a heightened sense of urgency in helping these special populations find housing. Thus, I am pleased to offer a bill which: reauthorizes federal funding for elderly and disabled housing programs; expands supportive housing opportunities for these special populations; codifies options to enhance the financial viability of the projects; assists sponsors in offering a ``continuum of care'' that allows people to live independently and with dignity; offers incentives to preserve the stock of affordable housing that is at risk of loss due to prepayment, Section 8 opt-out, or deterioration; and modernizes current laws allowing the FHA to insure mortgages on hospitals, assisted living facilities, and nursing homes. Together, I believe these measures will help to fill the critical housing needs of elderly and disabled families. On September 27, 1999, the House of Representatives overwhelmingly approved the Preserving Affordable Housing for Senior Citizens in the 21st Century Act (H.R. 202) by a vote of 405-5. [[Page S5242]] Several aspects of H.R. 202, which protected residents in the event that their landlords did not renew their project based Section 8 contracts, were included in the FY 2000 VA-HUD appropriations bill. The legislation I offer today is modeled on the House-passed bill, without the preservation provisions that have already been enacted. I would like to take a few moments to highlight the major provisions of this bill. The Section 202 elderly housing program and the Section 811 disabled housing program each provide crucial affordable housing for very low- income individuals, whose incomes are 50 percent or below of the area median income. By law, sponsors, or owners, of Section 202 or Section 811 housing must be non-profit organizations. Many sponsors are faith- based. The Affordable Housing for Seniors and Families Act will increase the stock of Section 202 and 811 housing in several ways. First, it reauthorizes funding for Section 202 and 811 housing programs in the amount of $700 million and $225 million, respectively, in FY 01. Such sums as are necessary are authorized for FY 02 through FY 04. Second, it creates an optional matching grant program that will enable sponsors to leverage additional money for construction. Third, it allows Section 202 housing sponsors to buy new properties. This legislation also codifies options giving owners financial flexibility to use sources of income besides the Section 202 and Section 811 funds. For instance, by requiring HUD to approve prepayment of the 202 mortgages, this bill allows sponsors to build equity in their projects, which can be used to leverage funding for capital improvements or services for tenants. It gives sponsors maximum flexibility to use all sources of financing, including federal money, for construction, amenities, and relevant design features. In order to raise additional outside revenue and offer a convenience to tenants, owners are permitted to rent space to commercial facilities. In the cases of both Section 202 and 811 housing, owners may use their project reserves to retrofit or modernize obsolete or unmarketable units. Finally, this bill allows project sponsors to form limited partnerships with for-profit entities. Through such a partnership, sponsors can also compete for the Low Income Housing Tax Credit, and build larger developments. The importance of providing a ``continuum of care'' for seniors and disabled persons to continue living independently is addressed in the Affordable Housing for Seniors and Families Act. For example, this bill helps seniors stay in their apartments as they become older and more frail by authorizing competitive grants for conversion of elderly housing and public housing projects designated for occupancy by elderly persons to assisted living facilities. Responding to obstacles the handicapped face in finding special-needs housing, it allows private non-profits to administer tenant-based rental assistance for the disabled. It also ensures that funding will continue to be invested in building housing for the disabled by limiting funding for tenant-based assistance under the Section 811 program to 25% of the program's appropriation. Funding for service coordinators, who link residents with supportive or medical services in the community, is authorized through FY 04. Moreover, service coordinators are permitted to assist low-income elderly or disabled families in the vicinity of their projects. Seniors who live in their own houses will be assisted by a provision in Title V which allows them to maximize the equity in their homes by streamlining the process of refinancing an existing federal- insured reverse mortgage. Title IV of this legislation focuses on preserving the existing stock of federally assisted properties as affordable housing for low and very low-income families. Each year, 100,000 low-cost apartments across the country are demolished, abandoned, or converted to market rate use. For every 100 extremely low-income households, having 30% or less of area median income, only 36 units were both affordable and available. Even in rural areas, the potential loss of assisted, affordable housing is very real due to prepayment of mortgages, opt-out of assisted housing programs upon contract expirations, frustration with government bureaucracy, or simply a recognition that the building would be more profitable as market-rate housing. Title IV responds with a matching grant program to assist state and local governments who are devoting their own money to affordable housing preservation. Likewise, it authorizes a competitive grant program to assist nonprofits in buying federally assisted property. Current law allowing the Federal Housing Administration (FHA) to insure mortgages on hospitals, nursing homes, and assisted living facilities has become outdated. Title V modernizes the law and removes barriers to using FHA insurance for such facilities. Likewise, it recognizes the integrated nature of healthcare by allowing the FHA to provide mortgage insurance for ``integrated service facilities,'' such as ambulatory care centers, which treat sick, injured, disabled, elderly, or infirm persons. Mr. President, I urge my colleagues to cosponsor this important bipartisan legislation. In closing, I would like to express my gratitude to Senator Kerry for working closely with me on this important legislation. I also would like to thank Senator Sarbanes for his cosponsorship. Mr. President, I ask unanimous consent that the text of the bill be printed in the Record. There being no objection, the bill was ordered to be printed in the Record, as follows: S. 2733 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 ``Affordable Housing for Seniors and Families Act''. (b) Table of Contents.--The table of contents for this Act is as follows: Sec. 1. Short title and table of contents. Sec. 2. Regulations. Sec. 3. Effective date. TITLE I--REFINANCING FOR SECTION 202 SUPPORTIVE HOUSING FOR THE ELDERLY Sec. 101. Prepayment and refinancing. TITLE II--AUTHORIZATION OF APPROPRIATIONS FOR SUPPORTIVE HOUSING FOR THE ELDERLY AND PERSONS WITH DISABILITIES Sec. 201. Supportive housing for elderly persons. Sec. 202. Supportive housing for persons with disabilities. Sec. 203. Service coordinators and congregate services for elderly and disabled housing. TITLE III--EXPANDING HOUSING OPPORTUNITIES FOR THE ELDERLY AND PERSONS WITH DISABILITIES Subtitle A--Housing for the Elderly Sec. 301. Matching grant program. Sec. 302. Eligibility of for-profit limited partnerships. Sec. 303. Mixed funding sources. Sec. 304. Authority to acquire structures. Sec. 305. Mixed-income occupancy. Sec. 306. Use of project reserves. Sec. 307. Commercial activities. Sec. 308. Mixed finance pilot program. Sec. 309. Grants for conversion of elderly housing to assisted living facilities. Sec. 310. Grants for conversion of public housing projects to assisted living facilities. Sec. 311. Annual HUD inventory of assisted housing designated for elderly persons. Sec. 312. Treatment of applications. Subtitle B--Housing for Persons With Disabilities Sec. 321. Matching grant program. Sec. 322. Eligibility of for-profit limited partnerships. Sec. 323. Mixed funding sources. Sec. 324. Tenant-based assistance. Sec. 325. Use of project reserves. Sec. 326. Commercial activities. Subtitle C--Other Provisions Sec. 341. Service coordinators. TITLE IV--PRESERVATION OF AFFORDABLE HOUSING STOCK Sec. 401. Matching grant program for affordable housing preservation. Sec. 402. Assistance for nonprofit purchasers preserving affordable housing. Sec. 403. Section 236 assistance. Sec. 404. Preservation projects. TITLE V--MORTGAGE INSURANCE FOR HEALTH CARE FACILITIES AND HOME EQUITY CONVERSION MORTGAGES Sec. 501. Rehabilitation of existing hospitals, nursing homes, and other facilities. Sec. 502. New integrated service facilities. Sec. 503. Hospitals and hospital-based integrated service facilities. Sec. 504. Home equity conversion mortgages. SEC. 2. REGULATIONS. The Secretary of Housing and Urban Development (referred to in this Act as the ``Secretary'') shall issue any regulations to carry [[Page S5243]] out this Act and the amendments made by this Act that the Secretary determines may or will affect tenants of federally assisted housing only after notice and opportunity for public comment in accordance with the procedure under section 553 of title 5, United States Code, applicable to substantive rules (notwithstanding subsections (a)(2), (b)(B), and (d)(3) of such section). Notice of such proposed rulemaking shall be provided by publication in the Federal Register. In issuing such regulations, the Secretary shall take such actions as may be necessary to ensure that such tenants are notified of, and provided an opportunity to participate in, the rulemaking, as required by such section 553. SEC. 3. EFFECTIVE DATE. (a) In General.--The provisions of this Act and the amendments made by this Act are effective as of the date of enactment of this Act, unless such provisions or amendments specifically provide for effectiveness or applicability upon another date certain. (b) Effect of Regulatory Authority.--Any authority in this Act or the amendments made by this Act to issue regulations, and any specific requirement to issue regulations by a date certain, may not be construed to affect the effectiveness or applicability of the provisions of this Act or the amendments made by this Act under such provisions and amendments and subsection (a) of this section. TITLE I--REFINANCING FOR SECTION 202 SUPPORTIVE HOUSING FOR THE ELDERLY SEC. 101. PREPAYMENT AND REFINANCING. (a) Approval of Prepayment of Debt.--Upon request of the project sponsor of a project assisted with a loan under section 202 of the Housing Act of 1959 (as in effect before the enactment of the Cranston-Gonzalez National Affordable Housing Act), the Secretary shall approve the prepayment of any indebtedness to the Secretary relating to any remaining principal and interest under the loan as part of a prepayment plan under which-- (1) the project sponsor agrees to operate the project until the maturity date of the original loan under terms at least as advantageous to existing and future tenants as the terms required by the original loan agreement or any rental assistance payments contract under section 8 of the United States Housing Act of 1937 (or any other rental housing assistance programs of the Department of Housing and Urban Development, including the rent supplement program under section 101 of the Housing and Urban Development Act of 1965 (12 U.S.C. 1701s)) relating to the project; and (2) the prepayment may involve refinancing of the loan if such refinancing results in a lower interest rate on the principal of the loan for the project and in reductions in debt service related to such loan. (b) Sources of Refinancing.--In the case of prepayment under this section involving refinancing, the project sponsor may refinance the project through any third party source, including financing by State and local housing finance agencies, use of tax-exempt bonds, multi-family mortgage insurance under the National Housing Act, reinsurance, or other credit enhancements, including risk sharing as provided under section 542 of the Housing and Community Development Act of 1992 (12 U.S.C. 1707 note). For purposes of underwriting a loan insured under the National Housing Act, the Secretary may assume that any section 8 rental assistance contract relating to a project will be renewed for the term of such loan. (c) Use of Unexpended Amounts.--Upon execution of the refinancing for a project pursuant to this section, the Secretary shall make available at least 50 percent of the annual savings resulting from reduced section 8 or other rental housing assistance contracts in a manner that is advantageous to the tenants, including-- (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; (2) rehabilitation, modernization, or retrofitting of structures, common areas, or individual dwelling units; (3) construction of an addition or other facility in the project, including assisted living facilities (or, upon the approval of the Secretary, facilities located in the community where the project sponsor refinances a project under this section, or pools shared resources from more than 1 such project); or (4) rent reduction of unassisted tenants residing in the project according to a pro rata allocation of shared savings resulting from the refinancing. (d) Use of Certain Project Funds.--The Secretary shall allow a project sponsor that is prepaying and refinancing a project under this section-- (1) to use any residual receipts held for that project in excess of $500 per individual dwelling unit for not more than 15 percent of the cost of activities designed to increase the availability or provision of supportive services; and (2) to use any reserves for replacement in excess of $1,000 per individual dwelling unit for activities described in paragraphs (2) and (3) of subsection (c). (e) Budget Act Compliance.--This section shall be effective only to extent or in such amounts that are provided in advance in appropriation Acts. TITLE II--AUTHORIZATION OF APPROPRIATIONS FOR SUPPORTIVE HOUSING FOR THE ELDERLY AND PERSONS WITH DISABILITIES SEC. 201. SUPPORTIVE HOUSING FOR ELDERLY PERSONS. Section 202 of the Housing Act of 1959 (12 U.S.C. 1701q) is amended by adding at the end the following: ``(m) Authorization of Appropriations.--There is authorized to be appropriated for providing assistance under this section $700,000,000 for fiscal year 2001 and such sums as may be necessary for each of fiscal years 2002, 2003, and 2004. Of the amount provided in appropriation Acts for assistance under this section in each such fiscal year, 5 percent shall be available only for providing assistance in accordance with the requirements under subsection (c)(4) (relating to matching funds), except that if there are insufficient eligible applicants for such assistance, any amount remaining shall be used for assistance under this section.''. SEC. 202. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES. Section 811 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013) is amended by striking subsection (m) and inserting the following: ``(m) Authorization of Appropriations.--There is authorized to be appropriated for providing assistance under this section $225,000,000 for fiscal year 2001 and such sums as may be necessary for each of fiscal years 2002, 2003, and 2004. Of the amount provided in appropriation Acts for assistance under this section in each such fiscal year, 5 percent shall be available only for providing assistance in accordance with the requirements under subsection (d)(5) (relating to matching funds), except that if there are insufficient eligible applicants for such assistance, any amount remaining shall be used for assistance under this section.''. SEC. 203. SERVICE COORDINATORS AND CONGREGATE SERVICES FOR ELDERLY AND DISABLED HOUSING. There is authorized to be appropriated to the Secretary $50,000,000 for fiscal year 2001, and such sums as may be necessary for each of fiscal years 2002, 2003, and 2004, for the following purposes: (1) Grants for service coordinators for certain federally assisted multifamily housing.--For grants under section 676 of the Housing and Community Development Act of 1992 (42 U.S.C. 13632) for providing service coordinators. (2) Congregate services for federally assisted housing.-- For contracts under section 802 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8011) to provide congregate services programs for eligible residents of eligible housing projects under subparagraphs (B) through (D) of subsection (k)(6) of such section. TITLE III--EXPANDING HOUSING OPPORTUNITIES FOR THE ELDERLY AND PERSONS WITH DISABILITIES Subtitle A--Housing for the Elderly SEC. 301. MATCHING GRANT PROGRAM. Section 202 of the Housing Act of 1959 (12 U.S.C. 1701q) is amended-- (1) in subsection (b), in the second sentence, by inserting ``or through matching grants under subsection (c)(4)'' after ``subsection (c)(1)''; and (2) in subsection (c), by adding at the end the following: ``(4) Matching grants.-- ``(A) In general.-- ``(i) 15 percent minimum.--Amounts made available for assistance under this paragraph shall be used only for capital advances in accordance with paragraph (1), except that the Secretary shall require that, as a condition of providing assistance under this paragraph for a project, the applicant for assistance shall supplement the assistance with amounts from sources other than this section in an amount that is not less than 15 percent of the amount of assistance provided pursuant to this paragraph for the project. ``(ii) Preference.--In providing assistance under this paragraph, the Secretary shall take into consideration the degree to which the applicant will supplement that assistance with amounts from sources other than this section and, all other factors being equal, shall give preference to applicants whose supplemental assistance is equal to the highest percentage of the amount of assistance provided pursuant to this paragraph for the project. ``(B) Requirement for non-federal funds.--Not less than 50 percent of supplemental amounts provided for a project pursuant to subparagraph (A) shall be from non-Federal sources. Such supplemental amounts may include the value of any in-kind contributions, including donated land, structures, equipment, and other contributions as the Secretary considers appropriate, but only if the existence of such in-kind contributions results in the construction of more dwelling units than would have been constructed absent such contributions. ``(C) Income eligibility.--Notwithstanding any other provision of this section, the Secretary shall provide that, in a project assisted under this paragraph, a number of dwelling units may be made available for occupancy by elderly persons who are not very low-income persons in a number such that the ratio that the number of dwelling units in the project so occupied bears to the total number of units in the project does not exceed the ratio that the amount from non- Federal sources provided for the project pursuant to this paragraph bears to the sum of the capital advances provided for the project [[Page S5244]] under this paragraph and all supplemental amounts for the project provided pursuant to this paragraph.''. SEC. 302. ELIGIBILITY OF FOR-PROFIT LIMITED PARTNERSHIPS. Section 202(k)(4) of the Housing Act of 1959 (12 U.S.C. 1701q(k)(4)) is amended by inserting after subparagraph (C) the following: ``Such term includes a for-profit limited partnership the sole general partner of which is an organization meeting the requirements under subparagraphs (A), (B), and (C), or a corporation wholly owned and controlled by an organization meeting the requirements under subparagraphs (A), (B), and (C).''. SEC. 303. MIXED FUNDING SOURCES. Section 202(h)(6) of the Housing Act of 1959 (12 U.S.C. 1701q(h)(6)) is amended by striking ``non-Federal sources'' and inserting ``sources other than this section''. SEC. 304. AUTHORITY TO ACQUIRE STRUCTURES. Section 202 of the Housing Act of 1959 (12 U.S.C. 1701q) is amended-- (1) in subsection (b), by striking ``from the Resolution Trust Corporation''; and (2) in subsection (h)(2)-- (A) in the paragraph heading, by striking ``RTC properties'' and inserting ``Acquisition''; and (B) by striking ``from the Resolution'' and all that follows through ``Insurance Act''. SEC. 305. MIXED-INCOME OCCUPANCY. (a) In General.--The first sentence of section 202(i)(1) of the Housing Act of 1959 (12 U.S.C. 1701q(i)(1)) is amended by striking ``and (B)'' and inserting the following: ``(B) notwithstanding subparagraph (A) and in the case only of a supportive housing project for the elderly that has a high vacancy level (as defined by the Secretary, except that such term shall not include vacancy upon the initial availability of units in a building), consistent with the purpose of improving housing opportunities for very low- and low-income elderly persons; and (C).''. (b) Availability of Units.--Section 202(i) of the Housing Act of 1959 (12 U.S.C. 1701q(i)) is amended by adding at the end the following: ``(3) Availability of units.--In the case of a supportive housing project described in paragraph (1)(B) that has a vacant dwelling unit, an owner may not make a dwelling unit available for occupancy by, nor make any commitment to provide occupancy in the unit to-- ``(A) a low-income family that is not a very low-income family unless each eligible very low-income family that has applied for occupancy in the project has been offered an opportunity to accept occupancy in a unit in the project; and ``(B) a low-income elderly person who is not a very low- income elderly person, unless the owner certifies to the Secretary that the owner has engaged in affirmative marketing and outreach to very low-income elderly persons.''. (b) Conforming Amendments.--Section 202 of the Housing Act of 1959 (12 U.S.C. 1701q) is amended-- (1) in subsection (c)-- (A) in paragraph (1), by inserting before ``in accordance with this section'' the following: ``, and for low-income elderly persons to the extent such occupancy is made available pursuant to subsection (i)(1)(B),''; (B) in the first sentence of paragraph (2), by inserting after ``elderly persons'' the following: ``or by low-income elderly persons (to the extent such occupancy is made available pursuant to subsection (i)(1)(B))''; and (C) in paragraph (3), by inserting after ``very low-income person'' the following: ``or a low-income person (to the extent such occupancy is made available pursuant to subsection (i)(1)(B))''; (2) in subsection (d)(1), by inserting after ``elderly persons'' the following: ``, and low-income elderly persons to the extent such occupancy is made available pursuant to subsection (i)(1)(B),''; and (3) in subsection (k)-- (A) by redesignating paragraphs (3) through (8) as paragraphs (4) through (9), respectively; and (B) by inserting after paragraph (2) the following: ``(3) Low-income.--The term `low-income' has the meaning given the term `low-income families' under section 3(b)(2) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)(2)).''. SEC. 306. USE OF PROJECT RESERVES. Section 202(j) of the Housing Act of 1959 (12 U.S.C. 1701q(j)) is amended by adding at the end the following: ``(8) Use of project reserves.--Amounts for project reserves for a project assisted under this section may be used for costs, subject to reasonable limitations as the Secretary determines appropriate, for reducing the number of dwelling units in the project. Such use shall be subject to the approval of the Secretary to ensure that the use is designed to retrofit units that are currently obsolete or unmarketable.''. SEC. 307. COMMERCIAL ACTIVITIES. Section 202(h)(1) of the Housing Act of 1959 (12 U.S.C. 1701q(h)(1)) is amended by adding at the end the following: ``Neither this section nor any other provision of law may be construed as prohibiting or preventing the location and operation, in a project assisted under this section, of commercial facilities for the benefit of residents of the project and the community in which the project is located, except that assistance made available under this section may not be used to subsidize any such commercial facility.''. SEC. 308. MIXED FINANCE PILOT PROGRAM. (a) Authority.--The Secretary shall carry out a pilot program under this section to determine the effectiveness and feasibility of providing assistance under section 202 of the Housing Act of 1959 (12 U.S.C. 1701q) for housing projects that are used both for supportive housing for the elderly and for other types of housing, which may include market rate housing. (b) Scope.--Under the pilot program the Secretary shall provide, to the extent that sufficient approvable applications for such assistance are received, assistance in the manner provided under subsection (d) for not more than 5 housing projects. (c) Mixed Use.--The Secretary shall, for a project to be assisted under the pilot program-- (1) require that a minimum number of the dwelling units in the project be reserved for use in accordance with, and subject to, the requirements applicable to units assisted under section 202 of the Housing Act of 1959, such that the ratio that the number of dwelling units in the project so reserved bears to the total number of units in the project is not less than the ratio that the amount of assistance from such section 202 used for the project pursuant to subsection (d) bears to the total amount of assistance provided for the project under this section; and (2) provide that the remainder of the dwelling units in the project may be used for assistance to persons who are not very low-income. (d) Financing.--The Secretary may use amounts provided for assistance under section 202 of the Housing Act of 1959 for assistance under the pilot program for capital advances in accordance with subsection (c)(1) of such section and project rental assistance in accordance with subsection (c)(2) of such section, only for dwelling units described in subsection (c)(1) of this section. Any assistance provided pursuant to subsection (c)(1) of such section 202 shall be provided in the form of a capital advance, subject to repayment as provided in such subsection, and shall not be structured as a loan. The Secretary shall take such action as may be necessary to ensure that the repayment contingency under such subsection is enforceable for projects assisted under the pilot program and to provide for appropriate protections of the interests of the Secretary in relation to other interests in the projects so assisted. (e) Report.--Not later than 2 years after assistance is initially made available under the pilot program under this section, the Secretary shall submit to Congress a report on the results of the pilot program. SEC. 309. GRANTS FOR CONVERSION OF ELDERLY HOUSING TO ASSISTED LIVING FACILITIES. Title II of the Housing Act of 1959 is amended by inserting after section 202a (12 U.S.C. 1701q-1) the following: ``SEC. 202B. GRANTS FOR CONVERSION OF ELDERLY HOUSING TO ASSISTED LIVING FACILITIES. ``(a) Grant Authority.--The Secretary of Housing and Urban Development may make grants in accordance with this section to owners of eligible projects described in subsection (b) for 1 or both of the following activities: ``(1) Repairs.--Substantial capital repairs to a project that are needed to rehabilitate, modernize, or retrofit aging structures, common areas, or individual dwelling units. ``(2) Conversion.--Activities designed to convert dwelling units in the eligible project to assisted living facilities for elderly persons. ``(b) Eligible Projects.-- ``(1) In general.--An eligible project described in this subsection is a multifamily housing project that is-- ``(A) described in subparagraph (B), (C), (D), (E), (F), or (G) of section 683(2) of the Housing and Community Development Act of 1992 (42 U.S.C. 13641(2)), or (B) only to the extent amounts of the Department of Agriculture are made available to the Secretary of Housing and Urban Development for such grants under this section for such projects, subject to a loan made or insured under section 515 of the Housing Act of 1949 (42 U.S.C. 1485); ``(B) owned by a private nonprofit organization (as such term is defined in section 202); and ``(C) designated primarily for occupancy by elderly persons. ``(2) Unused or underutilized commercial property.-- Notwithstanding any other provision of this subsection or this section, an unused or underutilized commercial property may be considered an eligible project under this subsection, except that the Secretary may not provide grants under this section for more than 3 such properties. For any such projects, any reference under this section to dwelling units shall be considered to refer to the premises of such properties. ``(c) Applications.--Applications for grants under this section shall be submitted to the Secretary in accordance with such procedures as the Secretary shall establish. Such applications shall contain-- ``(1) a description of the substantial capital repairs or the proposed conversion activities for which a grant under this section is requested; ``(2) the amount of the grant requested to complete the substantial capital repairs or conversion activities; ``(3) a description of the resources that are expected to be made available, if any, in conjunction with the grant under this section; and [[Page S5245]] ``(4) such other information or certifications that the Secretary determines to be necessary or appropriate. ``(d) Funding for Services.--The Secretary may not make a grant under this section for conversion activities unless the application contains sufficient evidence, in the determination of the Secretary, of firm commitments for the funding of services to be provided in the assisted living facility, which may be provided by third parties. ``(e) Selection Criteria.--The Secretary shall select applications for grants under this section based upon selection criteria, which shall be established by the Secretary and shall include-- ``(1) in the case of a grant for substantial capital repairs, the extent to which the project to be repaired is in need of such repair, including such factors as the age of improvements to be repaired, and the impact on the health and safety of residents of failure to make such repairs; ``(2) in the case of a grant for conversion activities, the extent to which the conversion is likely to provide assisted living facilities that are needed or are expected to be needed by the categories of elderly persons that the assisted living facility is intended to serve, with a special emphasis on very low-income elderly persons who need assistance with activities of daily living; ``(3) the inability of the applicant to fund the repairs or conversion activities from existing financial resources, as evidenced by the applicant's financial records, including assets in the applicant's residual receipts account and reserves for replacement account; ``(4) the extent to which the applicant has evidenced community support for the repairs or conversion, by such indicators as letters of support from the local community for the repairs or conversion and financial contributions from public and private sources; ``(5) in the case of a grant for conversion activities, the extent to which the applicant demonstrates a strong commitment to promoting the autonomy and independence of the elderly persons that the assisted living facility is intended to serve; ``(6) in the case of a grant for conversion activities, the quality, completeness, and managerial capability of providing the services which the assisted living facility intends to provide to elderly residents, especially in such areas as meals, 24-hour staffing, and on-site health care; and ``(7) such other criteria as the Secretary determines to be appropriate to ensure that funds made available under this section are used effectively. ``(f) Definitions.--In this section-- ``(1) the term `assisted living facility' has the meaning given such term in section 232(b) of the National Housing Act (12 U.S.C. 1715w(b)); and ``(2) the definitions in section 202(k) shall apply. ``(g) Authorization of Appropriations.--There is authorized to be appropriated for providing grants under this section such sums as may be necessary for each of fiscal years 2001, 2002, 2003, and 2004.''. SEC. 310. GRANTS FOR CONVERSION OF PUBLIC HOUSING PROJECTS TO ASSISTED LIVING FACILITIES. Title I of the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended by adding at the end the following: ``SEC. 36. GRANTS FOR CONVERSION OF PUBLIC HOUSING TO ASSISTED LIVING FACILITIES. ``(a) Grant Authority.--The Secretary may make grants in accordance with this section to public housing agencies for use for activities designed to convert dwelling units in an eligible projects described in subsection (b) to assisted living facilities for elderly persons. ``(b) Eligible Projects.--An eligible project described in this subsection is a public housing project (or a portion thereof) that has been designated under section 7 for occupancy only by elderly persons. ``(c) Applications.--Applications for grants under this section shall be submitted to the Secretary in accordance with such procedures as the Secretary shall establish. Such applications shall contain-- ``(1) a description of the proposed conversion activities for which a grant under this section is requested; ``(2) the amount of the grant requested; ``(3) a description of the resources that are expected to be made available, if any, in conjunction with the grant under this section; and ``(4) such other information or certifications that the Secretary determines to be necessary or appropriate. ``(d) Funding for Services.--The Secretary may not make a grant under this section unless the application contains sufficient evidence, in the determination of the Secretary, of firm commitments for the funding of services to be provided in the assisted living facility. ``(e) Selection Criteria.--The Secretary shall select applications for grants under this section based upon selection criteria, which shall be established by the Secretary and shall include-- ``(1) the extent to which the conversion is likely to provide assisted living facilities that are needed or are expected to be needed by the categories of elderly persons that the assisted living facility is intended to serve; ``(2) the inability of the public housing agency to fund the conversion activities from existing financial resources, as evidenced by the agency's financial records; ``(3) the extent to which the agency has evidenced community support for the conversion, by such indicators as letters of support from the local community for the conversion and financial contributions from public and private sources; ``(4) extent to which the applicant demonstrates a strong commitment to promoting the autonomy and independence of the elderly persons that the assisted living facility is intended to serve; ``(5) the quality, completeness, and managerial capability of providing the services which the assisted living facility intends to provide to elderly residents, especially in such areas as meals, 24-hour staffing, and on-site health care; and ``(6) such other criteria as the Secretary determines to be appropriate to ensure that funds made available under this section are used effectively. ``(f) Definition.--In this section, the term `assisted living facility' has the meaning given such term in section 232(b) of the National Housing Act (12 U.S.C. 1715w(b)). ``(g) Authorization of Appropriations.--There is authorized to be appropriated for providing grants under this section such sums as may be necessary for each of fiscal years 2001, 2002, 2003, and 2004.''. SEC. 311. ANNUAL HUD INVENTORY OF ASSISTED HOUSING DESIGNATED FOR ELDERLY PERSONS. Subtitle D of title VI of the Housing and Community Development Act of 1992 (42 U.S.C. 13611 et seq.) is amended by adding at the end the following: ``SEC. 662. ANNUAL INVENTORY OF ASSISTED HOUSING DESIGNATED FOR ELDERLY PERSONS. ``(a) In General.--The Secretary shall establish and maintain, and on an annual basis shall update and publish, an inventory of housing that-- ``(1) is assisted under a program of the Department of Housing and Urban Development, including all federally assisted housing; and ``(2) is designated, in whole or in part, for occupancy by elderly families or disabled families, or both. ``(b) Contents.--The inventory required under this section shall identify housing described in subsection (a) and the number of dwelling units in such housing that-- ``(1) are in projects designated for occupancy only by elderly families; ``(2) are in projects designated for occupancy only by disabled families; ``(3) contain special features or modifications designed to accommodate persons with disabilities and are in projects designated for occupancy only by disabled families; ``(4) are in projects for which a specific percentage or number of the dwelling units are designated for occupancy only by elderly families; ``(5) are in projects for which a specific percentage or number of the dwelling units are designated for occupancy only by disabled families; and ``(6) are in projects designed for occupancy only by both elderly or disabled families. ``(c) Publication.--The Secretary shall annually publish the inventory required under this section in the Federal Register and shall make the inventory available to the public by posting on a World Wide Web site of the Department.''. SEC. 312. TREATMENT OF APPLICATIONS. Notwithstanding any other provision of law or any regulation of the Secretary, in the case of any denial of an application for assistance under section 202 of the Housing Act of 1959 (12 U.S.C. 1701q) for failure to timely provide information required by the Secretary, the Secretary shall notify the applicant of the failure and provide the applicant an opportunity to show that the failure was due to the failure of a third party to provide information under the control of the third party. If the applicant demonstrates, within a reasonable period of time after notification of such failure, that the applicant did not have such information but requested the timely provision of such information by the third party, the Secretary may not deny the application solely on the grounds of failure to timely provide such information. Subtitle B--Housing for Persons With Disabilities SEC. 321. MATCHING GRANT PROGRAM. Section 811 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013) is amended-- (1) in subsection (b)(2)(A), by inserting ``or through matching grants under subsection (d)(5)'' after ``subsection (d)(1)''; and (2) in subsection (d), by adding at the end the following: ``(5) Matching grants.-- ``(A) In general.-- ``(i) 15 percent minimum.--Amounts made available for assistance under this paragraph shall be used only for capital advances in accordance with paragraph (1), except that the Secretary shall require that, as a condition of providing assistance under this paragraph for a project, the applicant for assistance shall supplement the assistance with amounts from sources other than this section in an amount that is not less than 15 percent of the amount of assistance provided pursuant to this paragraph for the project. ``(ii) Preference.--In providing assistance under this paragraph, the Secretary shall take into consideration the degree to which the applicant will supplement that assistance with amounts from sources other than this section and, all other factors being equal, shall give preference to applicants whose supplemental assistance is equal to [[Page S5246]] the highest percentage of the amount of assistance provided pursuant to this paragraph for the project. ``(B) Requirement for non-federal funds.--Not less than 50 percent of supplemental amounts provided for a project pursuant to subparagraph (A) shall be from non-Federal sources. Such supplemental amounts may include the value of any in-kind contributions, including donated land, structures, equipment, and other contributions as the Secretary considers appropriate, but only if the existence of such in-kind contributions results in the construction of more dwelling units than would have been constructed absent such contributions. ``(C) Income eligibility.--Notwithstanding any other provision of this section, the Secretary shall provide that, in a project assisted under this paragraph, a number of dwelling units may be made available for occupancy by persons with disabilities who are not very low-income persons in a number such that the ration that the number of dwelling units in the project so occupied bears to the total number of units in the project does not exceed the ratio that the amount from non-Federal sources provided for the project pursuant to this paragraph bears to the sum of the capital advances provided for the project under this paragraph and all supplemental amounts for the project provided pursuant to this paragraph.''. SEC. 322. ELIGIBILITY OF FOR-PROFIT LIMITED PARTNERSHIPS. Section 811(k)(6) of the Housing Act of 1959 (42 U.S.C. 8013(k)(6)) is amended by inserting after subparagraph (D) the following: ``Such term includes a for-profit limited partnership the sole general partner of which is an organization meeting the requirements under subparagraphs (A), (B), (C), and (D) or a corporation wholly owned and controlled by an organization meeting the requirements under subparagraphs (A), (B), (C), and (D).''. SEC. 323. MIXED FUNDING SOURCES. Section 811(h)(5) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013(h)(5)) is amended by striking ``non-Federal sources'' and inserting ``sources other than this section''. SEC. 324. TENANT-BASED ASSISTANCE. Section 811 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013) is amended-- (1) in subsection (d), by striking paragraph (4) and inserting the following: ``(4) Tenant-based rental assistance.-- ``(A) Administering entities.--Tenant-based rental assistance provided under subsection (b)(1) may be provided only through a public housing agency that has submitted and had approved an plan under section 7(d) of the United States Housing Act of 1937 (42 U.S.C. 1437e(d)) that provides for such assistance, or through a private nonprofit organization. A public housing agency shall be eligible to apply under this section only for the purposes of providing such tenant-based rental assistance. ``(B) Program rules.--Tenant-based rental assistance under subsection (b)(1) shall be made available to eligible persons with disabilities and administered under the same rules that govern tenant-based rental assistance made available under section 8 of the United States Housing Act of 1937, except that the Secretary may waive or modify such rules, but only to the extent necessary to provide for administering such assistance under subsection (b)(1) through private nonprofit organizations rather than through public housing agencies. ``(C) Allocation of assistance.--In determining the amount of assistance provided under subsection (b)(1) for a private nonprofit organization or public housing agency, the Secretary shall consider the needs and capabilities of the organization or agency, in the case of a public housing agency, as described in the plan for the agency under section 7 of the United States Housing Act of 1937.''; and (2) in subsection (l)(1)-- (A) by striking ``subsection (b)'' and inserting ``subsection (b)(2)''; (B) by striking the last comma and all that follows through ``subsection (n)''; and (C) by adding at the end the following: ``Notwithstanding any other provision of this section, the Secretary may use not more than 25 percent of the total amounts made available for assistance under this section for any fiscal year for tenant-based rental assistance under subsection (b)(1) for persons with disabilities, and no authority of the Secretary to waive provisions of this section may be used to alter the percentage limitation under this sentence.''. SEC. 325. USE OF PROJECT RESERVES. Section 811(j) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013(j)) is amended by adding at the end the following: ``(7) Use of project reserves.--Amounts for project reserves for a project assisted under this section may be used for costs, subject to reasonable limitations as the Secretary determines appropriate, for reducing the number of dwelling units in the project. Such use shall be subject to the approval of the Secretary to ensure that the use is designed to retrofit units that are currently obsolete or unmarketable.''. SEC. 326. COMMERCIAL ACTIVITIES. Section 811(h)(1) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013(h)(1)) is amended by adding at the end the following: ``Neither this section nor any other provision of law may be construed as prohibiting or preventing the location and operation, in a project assisted under this section, of commercial facilities for the benefit of residents of the project and the community in which the project is located, except that assistance made available under this section may not be used to subsidize any such commercial facility.''. Subtitle C--Other Provisions SEC. 341. SERVICE COORDINATORS. (a) Increased Flexibility for Use of Service Coordinators in Certain Federally Assisted Housing.--Section 676 of the Housing and Community Development Act of 1992 (42 U.S.C. 13632) is amended-- (1) in the section heading, by striking ``MULTIFAMILY HOUSING ASSISTED UNDER NATIONAL HOUSING ACT'' and inserting ``CERTAIN FEDERALLY ASSISTED HOUSING''; (2) in subsection (a)-- (A) in the first sentence, by striking ``(E) and (F)'' and inserting ``(B), (C), (D), (E), (F), and (G)''; and (B) in the last sentence-- (i) by striking ``section 661'' and inserting ``section 671''; and (ii) by adding at the end the following: ``A service coordinator funded with a grant under this section for a project may provide services to low-income elderly or disabled families living in the vicinity of such project.''; (3) in subsection (d)-- (A) by striking ``(E) or (F)'' and inserting ``(B), (C), (D), (E), (F), or (G)''; and (B) by striking ``section 661'' and inserting ``section 671''; and (4) by striking subsection (c) and redesignating subsection (d) (as amended by paragraph (3) of this subsection) as subsection (c). (b) Requirement To Provide Service Coordinators.--Section 671 of the Housing and Community Development Act of 1992 (42 U.S.C. 13631) is amended-- (1) in the first sentence of subsection (a), by striking ``to carry out this subtitle pursuant to the amendments made by this subtitle'' and inserting the following: ``for providing service coordinators under this section''; (2) in subsection (d), by inserting ``)'' after ``section 683(2)''; and (3) by adding at the end following: ``(e) Services for Low-Income Elderly or Disabled Families Residing in Vicinity of Certain Projects.--To the extent only that this section applies to service coordinators for covered federally assisted housing described in subparagraphs (B), (C), (D), (E), (F), and (G) of section 683(2), any reference in this section to elderly or disabled residents of a project shall be construed to include low-income elderly or disabled families living in the vicinity of such project.''. (c) Protection Against Telemarketing Fraud.-- (1) Supportive housing for the elderly.--The first sentence of section 202(g)(1) of the Housing Act of 1959 (12 U.S.C. 1701q(g)(1)) is amended by striking ``and (F)'' and inserting the following: ``(F) providing education and outreach regarding telemarketing fraud, in accordance with the standards issued under section 671(f) of the Housing and Community Development Act of 1992 (42 U.S.C. 13631(f)); and (G)''. (2) Other federally assisted housing.--Section 671 of the Housing and Community Development Act of 1992 (42 U.S.C. 13631), as amended by subsection (b) of this section, is further amended-- (A) in the first sentence of subsection (c), by inserting after ``response,'' the following: ``education and outreach regarding telemarketing fraud in accordance with the standards issued under subsection (f),''; and (B) by adding at the end the following: ``(f) Protection Against Telemarketing Fraud.-- ``(1) In general.--The Secretary, in coordination with the Secretary of Health and Human Services, shall establish standards for service coordinators in federally assisted housing who are providing education and outreach to elderly persons residing in such housing regarding telemarketing fraud. The standards shall be designed to ensure that such education and outreach informs such elderly persons of the dangers of telemarketing fraud and facilitates the investigation and prosecution of telemarketers engaging in fraud against such residents. ``(2) Contents.--The standards established under this subsection shall require that any such education and outreach be provided in a manner that-- ``(A) informs such residents of-- ``(i) the prevalence of telemarketing fraud targeted against elderly persons; ``(ii) how telemarketing fraud works; ``(iii) how to identify telemarketing fraud; ``(iv) how to protect themselves against telemarketing fraud, including an explanation of the dangers of providing bank account, credit card, or other financial or personal information over the telephone to unsolicited callers; ``(v) how to report suspected attempts at telemarketing fraud; and ``(vi) their consumer protection rights under Federal law; ``(B) provides such other information as the Secretary considers necessary to protect such residents against fraudulent telemarketing; and ``(C) disseminates the information provided by appropriate means, and in determining such appropriate means, the Secretary shall consider on-site presentations at federally [[Page S5247]] assisted housing, public service announcements, a printed manual or pamphlet, an Internet website, and telephone outreach to residents whose names appear on `mooch lists' confiscated from fraudulent telemarketers.''. TITLE IV--PRESERVATION OF AFFORDABLE HOUSING STOCK SEC. 401. MATCHING GRANT PROGRAM FOR AFFORDABLE HOUSING PRESERVATION. (a) Findings and Purposes.-- (1) Findings.--Congress finds that-- (A) availability of low-income housing rental units has declined nationwide in the last several ye

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STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
(Senate - June 15, 2000)

Text of this article available as: TXT PDF [Pages S5241-S5272] STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS By Mr. GRAMM: S. 2732. A bill to ensure that all States participating in the National Boll Weevil Eradication Program are treated equitably; to the Committee on Agriculture, Nutrition, and Forestry. the boll weevil eradication equity act Mr. GRAMM. Mr. President, today I am introducing the Boll Weevil Eradication Equity Act. Boll weevil infestation has caused more than $15 billion worth of damage to the United States cotton crop, and the nation's cotton producers lose $300 million annually. Texas is the largest cotton producing state in the nation, yet the scope of this problem extends beyond Texas. The ability of all states to eradicate this pest would stop future migration to boll weevil-free areas and prevent reintroduction of the boll weevil into those areas which have already completed a successful eradication effort. We must continue to build upon the past success of the existing program that authorizes the Animal and Plant Health Inspection Service of the United States Department of Agriculture to join with individual states and provide technical assistance and federal cost-share funds. This highly successful partnership has resulted in complete boll weevil eradication in California, Florida, Arizona, Alabama, Georgia, Virginia and North Carolina. These states received an average federal cost-share of 26.9 percent, with producers and individual states paying the remaining cost. Since 1994, however, the program has expanded into Texas, Mississippi, Arkansas, Louisiana, Tennessee, Oklahoma and New Mexico, but the federal appropriation has remained relatively constant. The addition of this vast acreage has resulted in dramatically reducing the federal cost share to only 4 percent, leaving producers and individual states to fund the remaining 96 percent. This is not fair to the states now participating in the program because federal matching funds to the states enrolled in the early years of the program constituted almost 30 percent of eradication costs. The National Cotton Council estimates that for every $1 spent on eradication, cotton farmers will accrue about $12 in benefits. The bill I am introducing today will authorize a federal cost share contribution of not less than 26.9 percent to the states and producers which still must contend with boll weevil infestation. I urge my colleagues to join this effort to ensure that these producers receive no less support than that which was provided during the earlier stages of the program. I ask unanimous consent that the text of the bill be printed in the Record. There being no objection, the bill was ordered to be printed in the Record, as follows: S. 2732 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Boll Weevil Eradication Equity Act''. SEC. 2. FINDINGS. Congress finds that-- (1) as of the date of enactment of this Act, infestation by Anthonomus grandis (commonly known as the ``boll weevil'') has caused more than $15,000,000,000 in damage to cotton crops of the United States and costs cotton producers in the United States approximately $300,000,000 annually; (2) through the National Boll Weevil Eradication Program (referred to in this Act as the ``program''), the Animal and Plant Health Inspection Service of the Department of Agriculture partners with producers to provide technical assistance and Federal cost share funds to States in an effort to eradicate the boll weevil; (3) States that enrolled in the program before 1994 have since been able to complete boll weevil eradication and were provided a Federal cost share that accounted for an average of 26.9 percent of the total cost of eradication; (4) States that enrolled in the program in or after 1994 account for 65 percent of the national cotton acreage and are now provided an average Federal cost share of only 4 percent, placing a tremendous financial burden on the individual producers; (5) the addition of vast acreage into the program has resulted in an increased need for Federal cost share funds; (6) a producer that participates in the program today deserves not less than the same level of commitment that was provided to producers that enrolled in the program before 1994; and (7) the ability of all States to eradicate the boll weevil would prevent further migration of the boll weevil to boll weevil-free areas and reintroduction of the boll weevil in those areas having completed boll weevil eradication. SEC. 3. BOLL WEEVIL ERADICATION ASSISTANCE. (a) In General.--Notwithstanding any other provision of law, the Secretary of Agriculture shall provide funds to pay at least 26.9 percent of the total program costs incurred by producers participating in the program. (b) Authorization of Appropriations.--There are authorized to be appropriated to carry out this Act such sums as are necessary for fiscal years 2001 through 2004. ______ By Mr. SANTORUM (for himself and Mr. Sarbanes): S. 2733. A bill to provide for the preservation of assisted housing for low income elderly persons, disabled persons, and other families; to the Committee on Banking, Housing, and Urban Affairs. affordable housing for seniors and families act Mr. SANTORUM. Mr. President, I rise with great pride to introduce the Affordable Housing for Seniors and Families Act. I am very pleased to say that Senator Kerry of Massachusetts and Senator Sarbanes are original cosponsors of this bill. Even as our national economy flourishes, many Americans are struggling to find safe, decent, sanitary, affordable housing. HUD estimates that 5.4 million families are either paying over half of their incomes for rent or living in substandard housing. Of these households, 1.4 million, or 26%, are elderly or disabled. The scarcity of affordable housing is particularly troubling for seniors and the disabled who may require special structural accommodations in their homes. As Vice Chairman of the Subcommittee on Housing and Transportation, and as a member of the Aging Committee, I feel a heightened sense of urgency in helping these special populations find housing. Thus, I am pleased to offer a bill which: reauthorizes federal funding for elderly and disabled housing programs; expands supportive housing opportunities for these special populations; codifies options to enhance the financial viability of the projects; assists sponsors in offering a ``continuum of care'' that allows people to live independently and with dignity; offers incentives to preserve the stock of affordable housing that is at risk of loss due to prepayment, Section 8 opt-out, or deterioration; and modernizes current laws allowing the FHA to insure mortgages on hospitals, assisted living facilities, and nursing homes. Together, I believe these measures will help to fill the critical housing needs of elderly and disabled families. On September 27, 1999, the House of Representatives overwhelmingly approved the Preserving Affordable Housing for Senior Citizens in the 21st Century Act (H.R. 202) by a vote of 405-5. [[Page S5242]] Several aspects of H.R. 202, which protected residents in the event that their landlords did not renew their project based Section 8 contracts, were included in the FY 2000 VA-HUD appropriations bill. The legislation I offer today is modeled on the House-passed bill, without the preservation provisions that have already been enacted. I would like to take a few moments to highlight the major provisions of this bill. The Section 202 elderly housing program and the Section 811 disabled housing program each provide crucial affordable housing for very low- income individuals, whose incomes are 50 percent or below of the area median income. By law, sponsors, or owners, of Section 202 or Section 811 housing must be non-profit organizations. Many sponsors are faith- based. The Affordable Housing for Seniors and Families Act will increase the stock of Section 202 and 811 housing in several ways. First, it reauthorizes funding for Section 202 and 811 housing programs in the amount of $700 million and $225 million, respectively, in FY 01. Such sums as are necessary are authorized for FY 02 through FY 04. Second, it creates an optional matching grant program that will enable sponsors to leverage additional money for construction. Third, it allows Section 202 housing sponsors to buy new properties. This legislation also codifies options giving owners financial flexibility to use sources of income besides the Section 202 and Section 811 funds. For instance, by requiring HUD to approve prepayment of the 202 mortgages, this bill allows sponsors to build equity in their projects, which can be used to leverage funding for capital improvements or services for tenants. It gives sponsors maximum flexibility to use all sources of financing, including federal money, for construction, amenities, and relevant design features. In order to raise additional outside revenue and offer a convenience to tenants, owners are permitted to rent space to commercial facilities. In the cases of both Section 202 and 811 housing, owners may use their project reserves to retrofit or modernize obsolete or unmarketable units. Finally, this bill allows project sponsors to form limited partnerships with for-profit entities. Through such a partnership, sponsors can also compete for the Low Income Housing Tax Credit, and build larger developments. The importance of providing a ``continuum of care'' for seniors and disabled persons to continue living independently is addressed in the Affordable Housing for Seniors and Families Act. For example, this bill helps seniors stay in their apartments as they become older and more frail by authorizing competitive grants for conversion of elderly housing and public housing projects designated for occupancy by elderly persons to assisted living facilities. Responding to obstacles the handicapped face in finding special-needs housing, it allows private non-profits to administer tenant-based rental assistance for the disabled. It also ensures that funding will continue to be invested in building housing for the disabled by limiting funding for tenant-based assistance under the Section 811 program to 25% of the program's appropriation. Funding for service coordinators, who link residents with supportive or medical services in the community, is authorized through FY 04. Moreover, service coordinators are permitted to assist low-income elderly or disabled families in the vicinity of their projects. Seniors who live in their own houses will be assisted by a provision in Title V which allows them to maximize the equity in their homes by streamlining the process of refinancing an existing federal- insured reverse mortgage. Title IV of this legislation focuses on preserving the existing stock of federally assisted properties as affordable housing for low and very low-income families. Each year, 100,000 low-cost apartments across the country are demolished, abandoned, or converted to market rate use. For every 100 extremely low-income households, having 30% or less of area median income, only 36 units were both affordable and available. Even in rural areas, the potential loss of assisted, affordable housing is very real due to prepayment of mortgages, opt-out of assisted housing programs upon contract expirations, frustration with government bureaucracy, or simply a recognition that the building would be more profitable as market-rate housing. Title IV responds with a matching grant program to assist state and local governments who are devoting their own money to affordable housing preservation. Likewise, it authorizes a competitive grant program to assist nonprofits in buying federally assisted property. Current law allowing the Federal Housing Administration (FHA) to insure mortgages on hospitals, nursing homes, and assisted living facilities has become outdated. Title V modernizes the law and removes barriers to using FHA insurance for such facilities. Likewise, it recognizes the integrated nature of healthcare by allowing the FHA to provide mortgage insurance for ``integrated service facilities,'' such as ambulatory care centers, which treat sick, injured, disabled, elderly, or infirm persons. Mr. President, I urge my colleagues to cosponsor this important bipartisan legislation. In closing, I would like to express my gratitude to Senator Kerry for working closely with me on this important legislation. I also would like to thank Senator Sarbanes for his cosponsorship. Mr. President, I ask unanimous consent that the text of the bill be printed in the Record. There being no objection, the bill was ordered to be printed in the Record, as follows: S. 2733 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 ``Affordable Housing for Seniors and Families Act''. (b) Table of Contents.--The table of contents for this Act is as follows: Sec. 1. Short title and table of contents. Sec. 2. Regulations. Sec. 3. Effective date. TITLE I--REFINANCING FOR SECTION 202 SUPPORTIVE HOUSING FOR THE ELDERLY Sec. 101. Prepayment and refinancing. TITLE II--AUTHORIZATION OF APPROPRIATIONS FOR SUPPORTIVE HOUSING FOR THE ELDERLY AND PERSONS WITH DISABILITIES Sec. 201. Supportive housing for elderly persons. Sec. 202. Supportive housing for persons with disabilities. Sec. 203. Service coordinators and congregate services for elderly and disabled housing. TITLE III--EXPANDING HOUSING OPPORTUNITIES FOR THE ELDERLY AND PERSONS WITH DISABILITIES Subtitle A--Housing for the Elderly Sec. 301. Matching grant program. Sec. 302. Eligibility of for-profit limited partnerships. Sec. 303. Mixed funding sources. Sec. 304. Authority to acquire structures. Sec. 305. Mixed-income occupancy. Sec. 306. Use of project reserves. Sec. 307. Commercial activities. Sec. 308. Mixed finance pilot program. Sec. 309. Grants for conversion of elderly housing to assisted living facilities. Sec. 310. Grants for conversion of public housing projects to assisted living facilities. Sec. 311. Annual HUD inventory of assisted housing designated for elderly persons. Sec. 312. Treatment of applications. Subtitle B--Housing for Persons With Disabilities Sec. 321. Matching grant program. Sec. 322. Eligibility of for-profit limited partnerships. Sec. 323. Mixed funding sources. Sec. 324. Tenant-based assistance. Sec. 325. Use of project reserves. Sec. 326. Commercial activities. Subtitle C--Other Provisions Sec. 341. Service coordinators. TITLE IV--PRESERVATION OF AFFORDABLE HOUSING STOCK Sec. 401. Matching grant program for affordable housing preservation. Sec. 402. Assistance for nonprofit purchasers preserving affordable housing. Sec. 403. Section 236 assistance. Sec. 404. Preservation projects. TITLE V--MORTGAGE INSURANCE FOR HEALTH CARE FACILITIES AND HOME EQUITY CONVERSION MORTGAGES Sec. 501. Rehabilitation of existing hospitals, nursing homes, and other facilities. Sec. 502. New integrated service facilities. Sec. 503. Hospitals and hospital-based integrated service facilities. Sec. 504. Home equity conversion mortgages. SEC. 2. REGULATIONS. The Secretary of Housing and Urban Development (referred to in this Act as the ``Secretary'') shall issue any regulations to carry [[Page S5243]] out this Act and the amendments made by this Act that the Secretary determines may or will affect tenants of federally assisted housing only after notice and opportunity for public comment in accordance with the procedure under section 553 of title 5, United States Code, applicable to substantive rules (notwithstanding subsections (a)(2), (b)(B), and (d)(3) of such section). Notice of such proposed rulemaking shall be provided by publication in the Federal Register. In issuing such regulations, the Secretary shall take such actions as may be necessary to ensure that such tenants are notified of, and provided an opportunity to participate in, the rulemaking, as required by such section 553. SEC. 3. EFFECTIVE DATE. (a) In General.--The provisions of this Act and the amendments made by this Act are effective as of the date of enactment of this Act, unless such provisions or amendments specifically provide for effectiveness or applicability upon another date certain. (b) Effect of Regulatory Authority.--Any authority in this Act or the amendments made by this Act to issue regulations, and any specific requirement to issue regulations by a date certain, may not be construed to affect the effectiveness or applicability of the provisions of this Act or the amendments made by this Act under such provisions and amendments and subsection (a) of this section. TITLE I--REFINANCING FOR SECTION 202 SUPPORTIVE HOUSING FOR THE ELDERLY SEC. 101. PREPAYMENT AND REFINANCING. (a) Approval of Prepayment of Debt.--Upon request of the project sponsor of a project assisted with a loan under section 202 of the Housing Act of 1959 (as in effect before the enactment of the Cranston-Gonzalez National Affordable Housing Act), the Secretary shall approve the prepayment of any indebtedness to the Secretary relating to any remaining principal and interest under the loan as part of a prepayment plan under which-- (1) the project sponsor agrees to operate the project until the maturity date of the original loan under terms at least as advantageous to existing and future tenants as the terms required by the original loan agreement or any rental assistance payments contract under section 8 of the United States Housing Act of 1937 (or any other rental housing assistance programs of the Department of Housing and Urban Development, including the rent supplement program under section 101 of the Housing and Urban Development Act of 1965 (12 U.S.C. 1701s)) relating to the project; and (2) the prepayment may involve refinancing of the loan if such refinancing results in a lower interest rate on the principal of the loan for the project and in reductions in debt service related to such loan. (b) Sources of Refinancing.--In the case of prepayment under this section involving refinancing, the project sponsor may refinance the project through any third party source, including financing by State and local housing finance agencies, use of tax-exempt bonds, multi-family mortgage insurance under the National Housing Act, reinsurance, or other credit enhancements, including risk sharing as provided under section 542 of the Housing and Community Development Act of 1992 (12 U.S.C. 1707 note). For purposes of underwriting a loan insured under the National Housing Act, the Secretary may assume that any section 8 rental assistance contract relating to a project will be renewed for the term of such loan. (c) Use of Unexpended Amounts.--Upon execution of the refinancing for a project pursuant to this section, the Secretary shall make available at least 50 percent of the annual savings resulting from reduced section 8 or other rental housing assistance contracts in a manner that is advantageous to the tenants, including-- (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; (2) rehabilitation, modernization, or retrofitting of structures, common areas, or individual dwelling units; (3) construction of an addition or other facility in the project, including assisted living facilities (or, upon the approval of the Secretary, facilities located in the community where the project sponsor refinances a project under this section, or pools shared resources from more than 1 such project); or (4) rent reduction of unassisted tenants residing in the project according to a pro rata allocation of shared savings resulting from the refinancing. (d) Use of Certain Project Funds.--The Secretary shall allow a project sponsor that is prepaying and refinancing a project under this section-- (1) to use any residual receipts held for that project in excess of $500 per individual dwelling unit for not more than 15 percent of the cost of activities designed to increase the availability or provision of supportive services; and (2) to use any reserves for replacement in excess of $1,000 per individual dwelling unit for activities described in paragraphs (2) and (3) of subsection (c). (e) Budget Act Compliance.--This section shall be effective only to extent or in such amounts that are provided in advance in appropriation Acts. TITLE II--AUTHORIZATION OF APPROPRIATIONS FOR SUPPORTIVE HOUSING FOR THE ELDERLY AND PERSONS WITH DISABILITIES SEC. 201. SUPPORTIVE HOUSING FOR ELDERLY PERSONS. Section 202 of the Housing Act of 1959 (12 U.S.C. 1701q) is amended by adding at the end the following: ``(m) Authorization of Appropriations.--There is authorized to be appropriated for providing assistance under this section $700,000,000 for fiscal year 2001 and such sums as may be necessary for each of fiscal years 2002, 2003, and 2004. Of the amount provided in appropriation Acts for assistance under this section in each such fiscal year, 5 percent shall be available only for providing assistance in accordance with the requirements under subsection (c)(4) (relating to matching funds), except that if there are insufficient eligible applicants for such assistance, any amount remaining shall be used for assistance under this section.''. SEC. 202. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES. Section 811 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013) is amended by striking subsection (m) and inserting the following: ``(m) Authorization of Appropriations.--There is authorized to be appropriated for providing assistance under this section $225,000,000 for fiscal year 2001 and such sums as may be necessary for each of fiscal years 2002, 2003, and 2004. Of the amount provided in appropriation Acts for assistance under this section in each such fiscal year, 5 percent shall be available only for providing assistance in accordance with the requirements under subsection (d)(5) (relating to matching funds), except that if there are insufficient eligible applicants for such assistance, any amount remaining shall be used for assistance under this section.''. SEC. 203. SERVICE COORDINATORS AND CONGREGATE SERVICES FOR ELDERLY AND DISABLED HOUSING. There is authorized to be appropriated to the Secretary $50,000,000 for fiscal year 2001, and such sums as may be necessary for each of fiscal years 2002, 2003, and 2004, for the following purposes: (1) Grants for service coordinators for certain federally assisted multifamily housing.--For grants under section 676 of the Housing and Community Development Act of 1992 (42 U.S.C. 13632) for providing service coordinators. (2) Congregate services for federally assisted housing.-- For contracts under section 802 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8011) to provide congregate services programs for eligible residents of eligible housing projects under subparagraphs (B) through (D) of subsection (k)(6) of such section. TITLE III--EXPANDING HOUSING OPPORTUNITIES FOR THE ELDERLY AND PERSONS WITH DISABILITIES Subtitle A--Housing for the Elderly SEC. 301. MATCHING GRANT PROGRAM. Section 202 of the Housing Act of 1959 (12 U.S.C. 1701q) is amended-- (1) in subsection (b), in the second sentence, by inserting ``or through matching grants under subsection (c)(4)'' after ``subsection (c)(1)''; and (2) in subsection (c), by adding at the end the following: ``(4) Matching grants.-- ``(A) In general.-- ``(i) 15 percent minimum.--Amounts made available for assistance under this paragraph shall be used only for capital advances in accordance with paragraph (1), except that the Secretary shall require that, as a condition of providing assistance under this paragraph for a project, the applicant for assistance shall supplement the assistance with amounts from sources other than this section in an amount that is not less than 15 percent of the amount of assistance provided pursuant to this paragraph for the project. ``(ii) Preference.--In providing assistance under this paragraph, the Secretary shall take into consideration the degree to which the applicant will supplement that assistance with amounts from sources other than this section and, all other factors being equal, shall give preference to applicants whose supplemental assistance is equal to the highest percentage of the amount of assistance provided pursuant to this paragraph for the project. ``(B) Requirement for non-federal funds.--Not less than 50 percent of supplemental amounts provided for a project pursuant to subparagraph (A) shall be from non-Federal sources. Such supplemental amounts may include the value of any in-kind contributions, including donated land, structures, equipment, and other contributions as the Secretary considers appropriate, but only if the existence of such in-kind contributions results in the construction of more dwelling units than would have been constructed absent such contributions. ``(C) Income eligibility.--Notwithstanding any other provision of this section, the Secretary shall provide that, in a project assisted under this paragraph, a number of dwelling units may be made available for occupancy by elderly persons who are not very low-income persons in a number such that the ratio that the number of dwelling units in the project so occupied bears to the total number of units in the project does not exceed the ratio that the amount from non- Federal sources provided for the project pursuant to this paragraph bears to the sum of the capital advances provided for the project [[Page S5244]] under this paragraph and all supplemental amounts for the project provided pursuant to this paragraph.''. SEC. 302. ELIGIBILITY OF FOR-PROFIT LIMITED PARTNERSHIPS. Section 202(k)(4) of the Housing Act of 1959 (12 U.S.C. 1701q(k)(4)) is amended by inserting after subparagraph (C) the following: ``Such term includes a for-profit limited partnership the sole general partner of which is an organization meeting the requirements under subparagraphs (A), (B), and (C), or a corporation wholly owned and controlled by an organization meeting the requirements under subparagraphs (A), (B), and (C).''. SEC. 303. MIXED FUNDING SOURCES. Section 202(h)(6) of the Housing Act of 1959 (12 U.S.C. 1701q(h)(6)) is amended by striking ``non-Federal sources'' and inserting ``sources other than this section''. SEC. 304. AUTHORITY TO ACQUIRE STRUCTURES. Section 202 of the Housing Act of 1959 (12 U.S.C. 1701q) is amended-- (1) in subsection (b), by striking ``from the Resolution Trust Corporation''; and (2) in subsection (h)(2)-- (A) in the paragraph heading, by striking ``RTC properties'' and inserting ``Acquisition''; and (B) by striking ``from the Resolution'' and all that follows through ``Insurance Act''. SEC. 305. MIXED-INCOME OCCUPANCY. (a) In General.--The first sentence of section 202(i)(1) of the Housing Act of 1959 (12 U.S.C. 1701q(i)(1)) is amended by striking ``and (B)'' and inserting the following: ``(B) notwithstanding subparagraph (A) and in the case only of a supportive housing project for the elderly that has a high vacancy level (as defined by the Secretary, except that such term shall not include vacancy upon the initial availability of units in a building), consistent with the purpose of improving housing opportunities for very low- and low-income elderly persons; and (C).''. (b) Availability of Units.--Section 202(i) of the Housing Act of 1959 (12 U.S.C. 1701q(i)) is amended by adding at the end the following: ``(3) Availability of units.--In the case of a supportive housing project described in paragraph (1)(B) that has a vacant dwelling unit, an owner may not make a dwelling unit available for occupancy by, nor make any commitment to provide occupancy in the unit to-- ``(A) a low-income family that is not a very low-income family unless each eligible very low-income family that has applied for occupancy in the project has been offered an opportunity to accept occupancy in a unit in the project; and ``(B) a low-income elderly person who is not a very low- income elderly person, unless the owner certifies to the Secretary that the owner has engaged in affirmative marketing and outreach to very low-income elderly persons.''. (b) Conforming Amendments.--Section 202 of the Housing Act of 1959 (12 U.S.C. 1701q) is amended-- (1) in subsection (c)-- (A) in paragraph (1), by inserting before ``in accordance with this section'' the following: ``, and for low-income elderly persons to the extent such occupancy is made available pursuant to subsection (i)(1)(B),''; (B) in the first sentence of paragraph (2), by inserting after ``elderly persons'' the following: ``or by low-income elderly persons (to the extent such occupancy is made available pursuant to subsection (i)(1)(B))''; and (C) in paragraph (3), by inserting after ``very low-income person'' the following: ``or a low-income person (to the extent such occupancy is made available pursuant to subsection (i)(1)(B))''; (2) in subsection (d)(1), by inserting after ``elderly persons'' the following: ``, and low-income elderly persons to the extent such occupancy is made available pursuant to subsection (i)(1)(B),''; and (3) in subsection (k)-- (A) by redesignating paragraphs (3) through (8) as paragraphs (4) through (9), respectively; and (B) by inserting after paragraph (2) the following: ``(3) Low-income.--The term `low-income' has the meaning given the term `low-income families' under section 3(b)(2) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)(2)).''. SEC. 306. USE OF PROJECT RESERVES. Section 202(j) of the Housing Act of 1959 (12 U.S.C. 1701q(j)) is amended by adding at the end the following: ``(8) Use of project reserves.--Amounts for project reserves for a project assisted under this section may be used for costs, subject to reasonable limitations as the Secretary determines appropriate, for reducing the number of dwelling units in the project. Such use shall be subject to the approval of the Secretary to ensure that the use is designed to retrofit units that are currently obsolete or unmarketable.''. SEC. 307. COMMERCIAL ACTIVITIES. Section 202(h)(1) of the Housing Act of 1959 (12 U.S.C. 1701q(h)(1)) is amended by adding at the end the following: ``Neither this section nor any other provision of law may be construed as prohibiting or preventing the location and operation, in a project assisted under this section, of commercial facilities for the benefit of residents of the project and the community in which the project is located, except that assistance made available under this section may not be used to subsidize any such commercial facility.''. SEC. 308. MIXED FINANCE PILOT PROGRAM. (a) Authority.--The Secretary shall carry out a pilot program under this section to determine the effectiveness and feasibility of providing assistance under section 202 of the Housing Act of 1959 (12 U.S.C. 1701q) for housing projects that are used both for supportive housing for the elderly and for other types of housing, which may include market rate housing. (b) Scope.--Under the pilot program the Secretary shall provide, to the extent that sufficient approvable applications for such assistance are received, assistance in the manner provided under subsection (d) for not more than 5 housing projects. (c) Mixed Use.--The Secretary shall, for a project to be assisted under the pilot program-- (1) require that a minimum number of the dwelling units in the project be reserved for use in accordance with, and subject to, the requirements applicable to units assisted under section 202 of the Housing Act of 1959, such that the ratio that the number of dwelling units in the project so reserved bears to the total number of units in the project is not less than the ratio that the amount of assistance from such section 202 used for the project pursuant to subsection (d) bears to the total amount of assistance provided for the project under this section; and (2) provide that the remainder of the dwelling units in the project may be used for assistance to persons who are not very low-income. (d) Financing.--The Secretary may use amounts provided for assistance under section 202 of the Housing Act of 1959 for assistance under the pilot program for capital advances in accordance with subsection (c)(1) of such section and project rental assistance in accordance with subsection (c)(2) of such section, only for dwelling units described in subsection (c)(1) of this section. Any assistance provided pursuant to subsection (c)(1) of such section 202 shall be provided in the form of a capital advance, subject to repayment as provided in such subsection, and shall not be structured as a loan. The Secretary shall take such action as may be necessary to ensure that the repayment contingency under such subsection is enforceable for projects assisted under the pilot program and to provide for appropriate protections of the interests of the Secretary in relation to other interests in the projects so assisted. (e) Report.--Not later than 2 years after assistance is initially made available under the pilot program under this section, the Secretary shall submit to Congress a report on the results of the pilot program. SEC. 309. GRANTS FOR CONVERSION OF ELDERLY HOUSING TO ASSISTED LIVING FACILITIES. Title II of the Housing Act of 1959 is amended by inserting after section 202a (12 U.S.C. 1701q-1) the following: ``SEC. 202B. GRANTS FOR CONVERSION OF ELDERLY HOUSING TO ASSISTED LIVING FACILITIES. ``(a) Grant Authority.--The Secretary of Housing and Urban Development may make grants in accordance with this section to owners of eligible projects described in subsection (b) for 1 or both of the following activities: ``(1) Repairs.--Substantial capital repairs to a project that are needed to rehabilitate, modernize, or retrofit aging structures, common areas, or individual dwelling units. ``(2) Conversion.--Activities designed to convert dwelling units in the eligible project to assisted living facilities for elderly persons. ``(b) Eligible Projects.-- ``(1) In general.--An eligible project described in this subsection is a multifamily housing project that is-- ``(A) described in subparagraph (B), (C), (D), (E), (F), or (G) of section 683(2) of the Housing and Community Development Act of 1992 (42 U.S.C. 13641(2)), or (B) only to the extent amounts of the Department of Agriculture are made available to the Secretary of Housing and Urban Development for such grants under this section for such projects, subject to a loan made or insured under section 515 of the Housing Act of 1949 (42 U.S.C. 1485); ``(B) owned by a private nonprofit organization (as such term is defined in section 202); and ``(C) designated primarily for occupancy by elderly persons. ``(2) Unused or underutilized commercial property.-- Notwithstanding any other provision of this subsection or this section, an unused or underutilized commercial property may be considered an eligible project under this subsection, except that the Secretary may not provide grants under this section for more than 3 such properties. For any such projects, any reference under this section to dwelling units shall be considered to refer to the premises of such properties. ``(c) Applications.--Applications for grants under this section shall be submitted to the Secretary in accordance with such procedures as the Secretary shall establish. Such applications shall contain-- ``(1) a description of the substantial capital repairs or the proposed conversion activities for which a grant under this section is requested; ``(2) the amount of the grant requested to complete the substantial capital repairs or conversion activities; ``(3) a description of the resources that are expected to be made available, if any, in conjunction with the grant under this section; and [[Page S5245]] ``(4) such other information or certifications that the Secretary determines to be necessary or appropriate. ``(d) Funding for Services.--The Secretary may not make a grant under this section for conversion activities unless the application contains sufficient evidence, in the determination of the Secretary, of firm commitments for the funding of services to be provided in the assisted living facility, which may be provided by third parties. ``(e) Selection Criteria.--The Secretary shall select applications for grants under this section based upon selection criteria, which shall be established by the Secretary and shall include-- ``(1) in the case of a grant for substantial capital repairs, the extent to which the project to be repaired is in need of such repair, including such factors as the age of improvements to be repaired, and the impact on the health and safety of residents of failure to make such repairs; ``(2) in the case of a grant for conversion activities, the extent to which the conversion is likely to provide assisted living facilities that are needed or are expected to be needed by the categories of elderly persons that the assisted living facility is intended to serve, with a special emphasis on very low-income elderly persons who need assistance with activities of daily living; ``(3) the inability of the applicant to fund the repairs or conversion activities from existing financial resources, as evidenced by the applicant's financial records, including assets in the applicant's residual receipts account and reserves for replacement account; ``(4) the extent to which the applicant has evidenced community support for the repairs or conversion, by such indicators as letters of support from the local community for the repairs or conversion and financial contributions from public and private sources; ``(5) in the case of a grant for conversion activities, the extent to which the applicant demonstrates a strong commitment to promoting the autonomy and independence of the elderly persons that the assisted living facility is intended to serve; ``(6) in the case of a grant for conversion activities, the quality, completeness, and managerial capability of providing the services which the assisted living facility intends to provide to elderly residents, especially in such areas as meals, 24-hour staffing, and on-site health care; and ``(7) such other criteria as the Secretary determines to be appropriate to ensure that funds made available under this section are used effectively. ``(f) Definitions.--In this section-- ``(1) the term `assisted living facility' has the meaning given such term in section 232(b) of the National Housing Act (12 U.S.C. 1715w(b)); and ``(2) the definitions in section 202(k) shall apply. ``(g) Authorization of Appropriations.--There is authorized to be appropriated for providing grants under this section such sums as may be necessary for each of fiscal years 2001, 2002, 2003, and 2004.''. SEC. 310. GRANTS FOR CONVERSION OF PUBLIC HOUSING PROJECTS TO ASSISTED LIVING FACILITIES. Title I of the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended by adding at the end the following: ``SEC. 36. GRANTS FOR CONVERSION OF PUBLIC HOUSING TO ASSISTED LIVING FACILITIES. ``(a) Grant Authority.--The Secretary may make grants in accordance with this section to public housing agencies for use for activities designed to convert dwelling units in an eligible projects described in subsection (b) to assisted living facilities for elderly persons. ``(b) Eligible Projects.--An eligible project described in this subsection is a public housing project (or a portion thereof) that has been designated under section 7 for occupancy only by elderly persons. ``(c) Applications.--Applications for grants under this section shall be submitted to the Secretary in accordance with such procedures as the Secretary shall establish. Such applications shall contain-- ``(1) a description of the proposed conversion activities for which a grant under this section is requested; ``(2) the amount of the grant requested; ``(3) a description of the resources that are expected to be made available, if any, in conjunction with the grant under this section; and ``(4) such other information or certifications that the Secretary determines to be necessary or appropriate. ``(d) Funding for Services.--The Secretary may not make a grant under this section unless the application contains sufficient evidence, in the determination of the Secretary, of firm commitments for the funding of services to be provided in the assisted living facility. ``(e) Selection Criteria.--The Secretary shall select applications for grants under this section based upon selection criteria, which shall be established by the Secretary and shall include-- ``(1) the extent to which the conversion is likely to provide assisted living facilities that are needed or are expected to be needed by the categories of elderly persons that the assisted living facility is intended to serve; ``(2) the inability of the public housing agency to fund the conversion activities from existing financial resources, as evidenced by the agency's financial records; ``(3) the extent to which the agency has evidenced community support for the conversion, by such indicators as letters of support from the local community for the conversion and financial contributions from public and private sources; ``(4) extent to which the applicant demonstrates a strong commitment to promoting the autonomy and independence of the elderly persons that the assisted living facility is intended to serve; ``(5) the quality, completeness, and managerial capability of providing the services which the assisted living facility intends to provide to elderly residents, especially in such areas as meals, 24-hour staffing, and on-site health care; and ``(6) such other criteria as the Secretary determines to be appropriate to ensure that funds made available under this section are used effectively. ``(f) Definition.--In this section, the term `assisted living facility' has the meaning given such term in section 232(b) of the National Housing Act (12 U.S.C. 1715w(b)). ``(g) Authorization of Appropriations.--There is authorized to be appropriated for providing grants under this section such sums as may be necessary for each of fiscal years 2001, 2002, 2003, and 2004.''. SEC. 311. ANNUAL HUD INVENTORY OF ASSISTED HOUSING DESIGNATED FOR ELDERLY PERSONS. Subtitle D of title VI of the Housing and Community Development Act of 1992 (42 U.S.C. 13611 et seq.) is amended by adding at the end the following: ``SEC. 662. ANNUAL INVENTORY OF ASSISTED HOUSING DESIGNATED FOR ELDERLY PERSONS. ``(a) In General.--The Secretary shall establish and maintain, and on an annual basis shall update and publish, an inventory of housing that-- ``(1) is assisted under a program of the Department of Housing and Urban Development, including all federally assisted housing; and ``(2) is designated, in whole or in part, for occupancy by elderly families or disabled families, or both. ``(b) Contents.--The inventory required under this section shall identify housing described in subsection (a) and the number of dwelling units in such housing that-- ``(1) are in projects designated for occupancy only by elderly families; ``(2) are in projects designated for occupancy only by disabled families; ``(3) contain special features or modifications designed to accommodate persons with disabilities and are in projects designated for occupancy only by disabled families; ``(4) are in projects for which a specific percentage or number of the dwelling units are designated for occupancy only by elderly families; ``(5) are in projects for which a specific percentage or number of the dwelling units are designated for occupancy only by disabled families; and ``(6) are in projects designed for occupancy only by both elderly or disabled families. ``(c) Publication.--The Secretary shall annually publish the inventory required under this section in the Federal Register and shall make the inventory available to the public by posting on a World Wide Web site of the Department.''. SEC. 312. TREATMENT OF APPLICATIONS. Notwithstanding any other provision of law or any regulation of the Secretary, in the case of any denial of an application for assistance under section 202 of the Housing Act of 1959 (12 U.S.C. 1701q) for failure to timely provide information required by the Secretary, the Secretary shall notify the applicant of the failure and provide the applicant an opportunity to show that the failure was due to the failure of a third party to provide information under the control of the third party. If the applicant demonstrates, within a reasonable period of time after notification of such failure, that the applicant did not have such information but requested the timely provision of such information by the third party, the Secretary may not deny the application solely on the grounds of failure to timely provide such information. Subtitle B--Housing for Persons With Disabilities SEC. 321. MATCHING GRANT PROGRAM. Section 811 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013) is amended-- (1) in subsection (b)(2)(A), by inserting ``or through matching grants under subsection (d)(5)'' after ``subsection (d)(1)''; and (2) in subsection (d), by adding at the end the following: ``(5) Matching grants.-- ``(A) In general.-- ``(i) 15 percent minimum.--Amounts made available for assistance under this paragraph shall be used only for capital advances in accordance with paragraph (1), except that the Secretary shall require that, as a condition of providing assistance under this paragraph for a project, the applicant for assistance shall supplement the assistance with amounts from sources other than this section in an amount that is not less than 15 percent of the amount of assistance provided pursuant to this paragraph for the project. ``(ii) Preference.--In providing assistance under this paragraph, the Secretary shall take into consideration the degree to which the applicant will supplement that assistance with amounts from sources other than this section and, all other factors being equal, shall give preference to applicants whose supplemental assistance is equal to [[Page S5246]] the highest percentage of the amount of assistance provided pursuant to this paragraph for the project. ``(B) Requirement for non-federal funds.--Not less than 50 percent of supplemental amounts provided for a project pursuant to subparagraph (A) shall be from non-Federal sources. Such supplemental amounts may include the value of any in-kind contributions, including donated land, structures, equipment, and other contributions as the Secretary considers appropriate, but only if the existence of such in-kind contributions results in the construction of more dwelling units than would have been constructed absent such contributions. ``(C) Income eligibility.--Notwithstanding any other provision of this section, the Secretary shall provide that, in a project assisted under this paragraph, a number of dwelling units may be made available for occupancy by persons with disabilities who are not very low-income persons in a number such that the ration that the number of dwelling units in the project so occupied bears to the total number of units in the project does not exceed the ratio that the amount from non-Federal sources provided for the project pursuant to this paragraph bears to the sum of the capital advances provided for the project under this paragraph and all supplemental amounts for the project provided pursuant to this paragraph.''. SEC. 322. ELIGIBILITY OF FOR-PROFIT LIMITED PARTNERSHIPS. Section 811(k)(6) of the Housing Act of 1959 (42 U.S.C. 8013(k)(6)) is amended by inserting after subparagraph (D) the following: ``Such term includes a for-profit limited partnership the sole general partner of which is an organization meeting the requirements under subparagraphs (A), (B), (C), and (D) or a corporation wholly owned and controlled by an organization meeting the requirements under subparagraphs (A), (B), (C), and (D).''. SEC. 323. MIXED FUNDING SOURCES. Section 811(h)(5) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013(h)(5)) is amended by striking ``non-Federal sources'' and inserting ``sources other than this section''. SEC. 324. TENANT-BASED ASSISTANCE. Section 811 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013) is amended-- (1) in subsection (d), by striking paragraph (4) and inserting the following: ``(4) Tenant-based rental assistance.-- ``(A) Administering entities.--Tenant-based rental assistance provided under subsection (b)(1) may be provided only through a public housing agency that has submitted and had approved an plan under section 7(d) of the United States Housing Act of 1937 (42 U.S.C. 1437e(d)) that provides for such assistance, or through a private nonprofit organization. A public housing agency shall be eligible to apply under this section only for the purposes of providing such tenant-based rental assistance. ``(B) Program rules.--Tenant-based rental assistance under subsection (b)(1) shall be made available to eligible persons with disabilities and administered under the same rules that govern tenant-based rental assistance made available under section 8 of the United States Housing Act of 1937, except that the Secretary may waive or modify such rules, but only to the extent necessary to provide for administering such assistance under subsection (b)(1) through private nonprofit organizations rather than through public housing agencies. ``(C) Allocation of assistance.--In determining the amount of assistance provided under subsection (b)(1) for a private nonprofit organization or public housing agency, the Secretary shall consider the needs and capabilities of the organization or agency, in the case of a public housing agency, as described in the plan for the agency under section 7 of the United States Housing Act of 1937.''; and (2) in subsection (l)(1)-- (A) by striking ``subsection (b)'' and inserting ``subsection (b)(2)''; (B) by striking the last comma and all that follows through ``subsection (n)''; and (C) by adding at the end the following: ``Notwithstanding any other provision of this section, the Secretary may use not more than 25 percent of the total amounts made available for assistance under this section for any fiscal year for tenant-based rental assistance under subsection (b)(1) for persons with disabilities, and no authority of the Secretary to waive provisions of this section may be used to alter the percentage limitation under this sentence.''. SEC. 325. USE OF PROJECT RESERVES. Section 811(j) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013(j)) is amended by adding at the end the following: ``(7) Use of project reserves.--Amounts for project reserves for a project assisted under this section may be used for costs, subject to reasonable limitations as the Secretary determines appropriate, for reducing the number of dwelling units in the project. Such use shall be subject to the approval of the Secretary to ensure that the use is designed to retrofit units that are currently obsolete or unmarketable.''. SEC. 326. COMMERCIAL ACTIVITIES. Section 811(h)(1) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013(h)(1)) is amended by adding at the end the following: ``Neither this section nor any other provision of law may be construed as prohibiting or preventing the location and operation, in a project assisted under this section, of commercial facilities for the benefit of residents of the project and the community in which the project is located, except that assistance made available under this section may not be used to subsidize any such commercial facility.''. Subtitle C--Other Provisions SEC. 341. SERVICE COORDINATORS. (a) Increased Flexibility for Use of Service Coordinators in Certain Federally Assisted Housing.--Section 676 of the Housing and Community Development Act of 1992 (42 U.S.C. 13632) is amended-- (1) in the section heading, by striking ``MULTIFAMILY HOUSING ASSISTED UNDER NATIONAL HOUSING ACT'' and inserting ``CERTAIN FEDERALLY ASSISTED HOUSING''; (2) in subsection (a)-- (A) in the first sentence, by striking ``(E) and (F)'' and inserting ``(B), (C), (D), (E), (F), and (G)''; and (B) in the last sentence-- (i) by striking ``section 661'' and inserting ``section 671''; and (ii) by adding at the end the following: ``A service coordinator funded with a grant under this section for a project may provide services to low-income elderly or disabled families living in the vicinity of such project.''; (3) in subsection (d)-- (A) by striking ``(E) or (F)'' and inserting ``(B), (C), (D), (E), (F), or (G)''; and (B) by striking ``section 661'' and inserting ``section 671''; and (4) by striking subsection (c) and redesignating subsection (d) (as amended by paragraph (3) of this subsection) as subsection (c). (b) Requirement To Provide Service Coordinators.--Section 671 of the Housing and Community Development Act of 1992 (42 U.S.C. 13631) is amended-- (1) in the first sentence of subsection (a), by striking ``to carry out this subtitle pursuant to the amendments made by this subtitle'' and inserting the following: ``for providing service coordinators under this section''; (2) in subsection (d), by inserting ``)'' after ``section 683(2)''; and (3) by adding at the end following: ``(e) Services for Low-Income Elderly or Disabled Families Residing in Vicinity of Certain Projects.--To the extent only that this section applies to service coordinators for covered federally assisted housing described in subparagraphs (B), (C), (D), (E), (F), and (G) of section 683(2), any reference in this section to elderly or disabled residents of a project shall be construed to include low-income elderly or disabled families living in the vicinity of such project.''. (c) Protection Against Telemarketing Fraud.-- (1) Supportive housing for the elderly.--The first sentence of section 202(g)(1) of the Housing Act of 1959 (12 U.S.C. 1701q(g)(1)) is amended by striking ``and (F)'' and inserting the following: ``(F) providing education and outreach regarding telemarketing fraud, in accordance with the standards issued under section 671(f) of the Housing and Community Development Act of 1992 (42 U.S.C. 13631(f)); and (G)''. (2) Other federally assisted housing.--Section 671 of the Housing and Community Development Act of 1992 (42 U.S.C. 13631), as amended by subsection (b) of this section, is further amended-- (A) in the first sentence of subsection (c), by inserting after ``response,'' the following: ``education and outreach regarding telemarketing fraud in accordance with the standards issued under subsection (f),''; and (B) by adding at the end the following: ``(f) Protection Against Telemarketing Fraud.-- ``(1) In general.--The Secretary, in coordination with the Secretary of Health and Human Services, shall establish standards for service coordinators in federally assisted housing who are providing education and outreach to elderly persons residing in such housing regarding telemarketing fraud. The standards shall be designed to ensure that such education and outreach informs such elderly persons of the dangers of telemarketing fraud and facilitates the investigation and prosecution of telemarketers engaging in fraud against such residents. ``(2) Contents.--The standards established under this subsection shall require that any such education and outreach be provided in a manner that-- ``(A) informs such residents of-- ``(i) the prevalence of telemarketing fraud targeted against elderly persons; ``(ii) how telemarketing fraud works; ``(iii) how to identify telemarketing fraud; ``(iv) how to protect themselves against telemarketing fraud, including an explanation of the dangers of providing bank account, credit card, or other financial or personal information over the telephone to unsolicited callers; ``(v) how to report suspected attempts at telemarketing fraud; and ``(vi) their consumer protection rights under Federal law; ``(B) provides such other information as the Secretary considers necessary to protect such residents against fraudulent telemarketing; and ``(C) disseminates the information provided by appropriate means, and in determining such appropriate means, the Secretary shall consider on-site presentations at federally [[Page S5247]] assisted housing, public service announcements, a printed manual or pamphlet, an Internet website, and telephone outreach to residents whose names appear on `mooch lists' confiscated from fraudulent telemarketers.''. TITLE IV--PRESERVATION OF AFFORDABLE HOUSING STOCK SEC. 401. MATCHING GRANT PROGRAM FOR AFFORDABLE HOUSING PRESERVATION. (a) Findings and Purposes.-- (1) Findings.--Congress finds that-- (A) availability of low-income housing rental units has declined nationwide in the last several years;

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STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS
(Senate - June 15, 2000)

Text of this article available as: TXT PDF [Pages S5241-S5272] STATEMENTS ON INTRODUCED BILLS AND JOINT RESOLUTIONS By Mr. GRAMM: S. 2732. A bill to ensure that all States participating in the National Boll Weevil Eradication Program are treated equitably; to the Committee on Agriculture, Nutrition, and Forestry. the boll weevil eradication equity act Mr. GRAMM. Mr. President, today I am introducing the Boll Weevil Eradication Equity Act. Boll weevil infestation has caused more than $15 billion worth of damage to the United States cotton crop, and the nation's cotton producers lose $300 million annually. Texas is the largest cotton producing state in the nation, yet the scope of this problem extends beyond Texas. The ability of all states to eradicate this pest would stop future migration to boll weevil-free areas and prevent reintroduction of the boll weevil into those areas which have already completed a successful eradication effort. We must continue to build upon the past success of the existing program that authorizes the Animal and Plant Health Inspection Service of the United States Department of Agriculture to join with individual states and provide technical assistance and federal cost-share funds. This highly successful partnership has resulted in complete boll weevil eradication in California, Florida, Arizona, Alabama, Georgia, Virginia and North Carolina. These states received an average federal cost-share of 26.9 percent, with producers and individual states paying the remaining cost. Since 1994, however, the program has expanded into Texas, Mississippi, Arkansas, Louisiana, Tennessee, Oklahoma and New Mexico, but the federal appropriation has remained relatively constant. The addition of this vast acreage has resulted in dramatically reducing the federal cost share to only 4 percent, leaving producers and individual states to fund the remaining 96 percent. This is not fair to the states now participating in the program because federal matching funds to the states enrolled in the early years of the program constituted almost 30 percent of eradication costs. The National Cotton Council estimates that for every $1 spent on eradication, cotton farmers will accrue about $12 in benefits. The bill I am introducing today will authorize a federal cost share contribution of not less than 26.9 percent to the states and producers which still must contend with boll weevil infestation. I urge my colleagues to join this effort to ensure that these producers receive no less support than that which was provided during the earlier stages of the program. I ask unanimous consent that the text of the bill be printed in the Record. There being no objection, the bill was ordered to be printed in the Record, as follows: S. 2732 Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled, SECTION 1. SHORT TITLE. This Act may be cited as the ``Boll Weevil Eradication Equity Act''. SEC. 2. FINDINGS. Congress finds that-- (1) as of the date of enactment of this Act, infestation by Anthonomus grandis (commonly known as the ``boll weevil'') has caused more than $15,000,000,000 in damage to cotton crops of the United States and costs cotton producers in the United States approximately $300,000,000 annually; (2) through the National Boll Weevil Eradication Program (referred to in this Act as the ``program''), the Animal and Plant Health Inspection Service of the Department of Agriculture partners with producers to provide technical assistance and Federal cost share funds to States in an effort to eradicate the boll weevil; (3) States that enrolled in the program before 1994 have since been able to complete boll weevil eradication and were provided a Federal cost share that accounted for an average of 26.9 percent of the total cost of eradication; (4) States that enrolled in the program in or after 1994 account for 65 percent of the national cotton acreage and are now provided an average Federal cost share of only 4 percent, placing a tremendous financial burden on the individual producers; (5) the addition of vast acreage into the program has resulted in an increased need for Federal cost share funds; (6) a producer that participates in the program today deserves not less than the same level of commitment that was provided to producers that enrolled in the program before 1994; and (7) the ability of all States to eradicate the boll weevil would prevent further migration of the boll weevil to boll weevil-free areas and reintroduction of the boll weevil in those areas having completed boll weevil eradication. SEC. 3. BOLL WEEVIL ERADICATION ASSISTANCE. (a) In General.--Notwithstanding any other provision of law, the Secretary of Agriculture shall provide funds to pay at least 26.9 percent of the total program costs incurred by producers participating in the program. (b) Authorization of Appropriations.--There are authorized to be appropriated to carry out this Act such sums as are necessary for fiscal years 2001 through 2004. ______ By Mr. SANTORUM (for himself and Mr. Sarbanes): S. 2733. A bill to provide for the preservation of assisted housing for low income elderly persons, disabled persons, and other families; to the Committee on Banking, Housing, and Urban Affairs. affordable housing for seniors and families act Mr. SANTORUM. Mr. President, I rise with great pride to introduce the Affordable Housing for Seniors and Families Act. I am very pleased to say that Senator Kerry of Massachusetts and Senator Sarbanes are original cosponsors of this bill. Even as our national economy flourishes, many Americans are struggling to find safe, decent, sanitary, affordable housing. HUD estimates that 5.4 million families are either paying over half of their incomes for rent or living in substandard housing. Of these households, 1.4 million, or 26%, are elderly or disabled. The scarcity of affordable housing is particularly troubling for seniors and the disabled who may require special structural accommodations in their homes. As Vice Chairman of the Subcommittee on Housing and Transportation, and as a member of the Aging Committee, I feel a heightened sense of urgency in helping these special populations find housing. Thus, I am pleased to offer a bill which: reauthorizes federal funding for elderly and disabled housing programs; expands supportive housing opportunities for these special populations; codifies options to enhance the financial viability of the projects; assists sponsors in offering a ``continuum of care'' that allows people to live independently and with dignity; offers incentives to preserve the stock of affordable housing that is at risk of loss due to prepayment, Section 8 opt-out, or deterioration; and modernizes current laws allowing the FHA to insure mortgages on hospitals, assisted living facilities, and nursing homes. Together, I believe these measures will help to fill the critical housing needs of elderly and disabled families. On September 27, 1999, the House of Representatives overwhelmingly approved the Preserving Affordable Housing for Senior Citizens in the 21st Century Act (H.R. 202) by a vote of 405-5. [[Page S5242]] Several aspects of H.R. 202, which protected residents in the event that their landlords did not renew their project based Section 8 contracts, were included in the FY 2000 VA-HUD appropriations bill. The legislation I offer today is modeled on the House-passed bill, without the preservation provisions that have already been enacted. I would like to take a few moments to highlight the major provisions of this bill. The Section 202 elderly housing program and the Section 811 disabled housing program each provide crucial affordable housing for very low- income individuals, whose incomes are 50 percent or below of the area median income. By law, sponsors, or owners, of Section 202 or Section 811 housing must be non-profit organizations. Many sponsors are faith- based. The Affordable Housing for Seniors and Families Act will increase the stock of Section 202 and 811 housing in several ways. First, it reauthorizes funding for Section 202 and 811 housing programs in the amount of $700 million and $225 million, respectively, in FY 01. Such sums as are necessary are authorized for FY 02 through FY 04. Second, it creates an optional matching grant program that will enable sponsors to leverage additional money for construction. Third, it allows Section 202 housing sponsors to buy new properties. This legislation also codifies options giving owners financial flexibility to use sources of income besides the Section 202 and Section 811 funds. For instance, by requiring HUD to approve prepayment of the 202 mortgages, this bill allows sponsors to build equity in their projects, which can be used to leverage funding for capital improvements or services for tenants. It gives sponsors maximum flexibility to use all sources of financing, including federal money, for construction, amenities, and relevant design features. In order to raise additional outside revenue and offer a convenience to tenants, owners are permitted to rent space to commercial facilities. In the cases of both Section 202 and 811 housing, owners may use their project reserves to retrofit or modernize obsolete or unmarketable units. Finally, this bill allows project sponsors to form limited partnerships with for-profit entities. Through such a partnership, sponsors can also compete for the Low Income Housing Tax Credit, and build larger developments. The importance of providing a ``continuum of care'' for seniors and disabled persons to continue living independently is addressed in the Affordable Housing for Seniors and Families Act. For example, this bill helps seniors stay in their apartments as they become older and more frail by authorizing competitive grants for conversion of elderly housing and public housing projects designated for occupancy by elderly persons to assisted living facilities. Responding to obstacles the handicapped face in finding special-needs housing, it allows private non-profits to administer tenant-based rental assistance for the disabled. It also ensures that funding will continue to be invested in building housing for the disabled by limiting funding for tenant-based assistance under the Section 811 program to 25% of the program's appropriation. Funding for service coordinators, who link residents with supportive or medical services in the community, is authorized through FY 04. Moreover, service coordinators are permitted to assist low-income elderly or disabled families in the vicinity of their projects. Seniors who live in their own houses will be assisted by a provision in Title V which allows them to maximize the equity in their homes by streamlining the process of refinancing an existing federal- insured reverse mortgage. Title IV of this legislation focuses on preserving the existing stock of federally assisted properties as affordable housing for low and very low-income families. Each year, 100,000 low-cost apartments across the country are demolished, abandoned, or converted to market rate use. For every 100 extremely low-income households, having 30% or less of area median income, only 36 units were both affordable and available. Even in rural areas, the potential loss of assisted, affordable housing is very real due to prepayment of mortgages, opt-out of assisted housing programs upon contract expirations, frustration with government bureaucracy, or simply a recognition that the building would be more profitable as market-rate housing. Title IV responds with a matching grant program to assist state and local governments who are devoting their own money to affordable housing preservation. Likewise, it authorizes a competitive grant program to assist nonprofits in buying federally assisted property. Current law allowing the Federal Housing Administration (FHA) to insure mortgages on hospitals, nursing homes, and assisted living facilities has become outdated. Title V modernizes the law and removes barriers to using FHA insurance for such facilities. Likewise, it recognizes the integrated nature of healthcare by allowing the FHA to provide mortgage insurance for ``integrated service facilities,'' such as ambulatory care centers, which treat sick, injured, disabled, elderly, or infirm persons. Mr. President, I urge my colleagues to cosponsor this important bipartisan legislation. In closing, I would like to express my gratitude to Senator Kerry for working closely with me on this important legislation. I also would like to thank Senator Sarbanes for his cosponsorship. Mr. President, I ask unanimous consent that the text of the bill be printed in the Record. There being no objection, the bill was ordered to be printed in the Record, as follows: S. 2733 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 ``Affordable Housing for Seniors and Families Act''. (b) Table of Contents.--The table of contents for this Act is as follows: Sec. 1. Short title and table of contents. Sec. 2. Regulations. Sec. 3. Effective date. TITLE I--REFINANCING FOR SECTION 202 SUPPORTIVE HOUSING FOR THE ELDERLY Sec. 101. Prepayment and refinancing. TITLE II--AUTHORIZATION OF APPROPRIATIONS FOR SUPPORTIVE HOUSING FOR THE ELDERLY AND PERSONS WITH DISABILITIES Sec. 201. Supportive housing for elderly persons. Sec. 202. Supportive housing for persons with disabilities. Sec. 203. Service coordinators and congregate services for elderly and disabled housing. TITLE III--EXPANDING HOUSING OPPORTUNITIES FOR THE ELDERLY AND PERSONS WITH DISABILITIES Subtitle A--Housing for the Elderly Sec. 301. Matching grant program. Sec. 302. Eligibility of for-profit limited partnerships. Sec. 303. Mixed funding sources. Sec. 304. Authority to acquire structures. Sec. 305. Mixed-income occupancy. Sec. 306. Use of project reserves. Sec. 307. Commercial activities. Sec. 308. Mixed finance pilot program. Sec. 309. Grants for conversion of elderly housing to assisted living facilities. Sec. 310. Grants for conversion of public housing projects to assisted living facilities. Sec. 311. Annual HUD inventory of assisted housing designated for elderly persons. Sec. 312. Treatment of applications. Subtitle B--Housing for Persons With Disabilities Sec. 321. Matching grant program. Sec. 322. Eligibility of for-profit limited partnerships. Sec. 323. Mixed funding sources. Sec. 324. Tenant-based assistance. Sec. 325. Use of project reserves. Sec. 326. Commercial activities. Subtitle C--Other Provisions Sec. 341. Service coordinators. TITLE IV--PRESERVATION OF AFFORDABLE HOUSING STOCK Sec. 401. Matching grant program for affordable housing preservation. Sec. 402. Assistance for nonprofit purchasers preserving affordable housing. Sec. 403. Section 236 assistance. Sec. 404. Preservation projects. TITLE V--MORTGAGE INSURANCE FOR HEALTH CARE FACILITIES AND HOME EQUITY CONVERSION MORTGAGES Sec. 501. Rehabilitation of existing hospitals, nursing homes, and other facilities. Sec. 502. New integrated service facilities. Sec. 503. Hospitals and hospital-based integrated service facilities. Sec. 504. Home equity conversion mortgages. SEC. 2. REGULATIONS. The Secretary of Housing and Urban Development (referred to in this Act as the ``Secretary'') shall issue any regulations to carry [[Page S5243]] out this Act and the amendments made by this Act that the Secretary determines may or will affect tenants of federally assisted housing only after notice and opportunity for public comment in accordance with the procedure under section 553 of title 5, United States Code, applicable to substantive rules (notwithstanding subsections (a)(2), (b)(B), and (d)(3) of such section). Notice of such proposed rulemaking shall be provided by publication in the Federal Register. In issuing such regulations, the Secretary shall take such actions as may be necessary to ensure that such tenants are notified of, and provided an opportunity to participate in, the rulemaking, as required by such section 553. SEC. 3. EFFECTIVE DATE. (a) In General.--The provisions of this Act and the amendments made by this Act are effective as of the date of enactment of this Act, unless such provisions or amendments specifically provide for effectiveness or applicability upon another date certain. (b) Effect of Regulatory Authority.--Any authority in this Act or the amendments made by this Act to issue regulations, and any specific requirement to issue regulations by a date certain, may not be construed to affect the effectiveness or applicability of the provisions of this Act or the amendments made by this Act under such provisions and amendments and subsection (a) of this section. TITLE I--REFINANCING FOR SECTION 202 SUPPORTIVE HOUSING FOR THE ELDERLY SEC. 101. PREPAYMENT AND REFINANCING. (a) Approval of Prepayment of Debt.--Upon request of the project sponsor of a project assisted with a loan under section 202 of the Housing Act of 1959 (as in effect before the enactment of the Cranston-Gonzalez National Affordable Housing Act), the Secretary shall approve the prepayment of any indebtedness to the Secretary relating to any remaining principal and interest under the loan as part of a prepayment plan under which-- (1) the project sponsor agrees to operate the project until the maturity date of the original loan under terms at least as advantageous to existing and future tenants as the terms required by the original loan agreement or any rental assistance payments contract under section 8 of the United States Housing Act of 1937 (or any other rental housing assistance programs of the Department of Housing and Urban Development, including the rent supplement program under section 101 of the Housing and Urban Development Act of 1965 (12 U.S.C. 1701s)) relating to the project; and (2) the prepayment may involve refinancing of the loan if such refinancing results in a lower interest rate on the principal of the loan for the project and in reductions in debt service related to such loan. (b) Sources of Refinancing.--In the case of prepayment under this section involving refinancing, the project sponsor may refinance the project through any third party source, including financing by State and local housing finance agencies, use of tax-exempt bonds, multi-family mortgage insurance under the National Housing Act, reinsurance, or other credit enhancements, including risk sharing as provided under section 542 of the Housing and Community Development Act of 1992 (12 U.S.C. 1707 note). For purposes of underwriting a loan insured under the National Housing Act, the Secretary may assume that any section 8 rental assistance contract relating to a project will be renewed for the term of such loan. (c) Use of Unexpended Amounts.--Upon execution of the refinancing for a project pursuant to this section, the Secretary shall make available at least 50 percent of the annual savings resulting from reduced section 8 or other rental housing assistance contracts in a manner that is advantageous to the tenants, including-- (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; (2) rehabilitation, modernization, or retrofitting of structures, common areas, or individual dwelling units; (3) construction of an addition or other facility in the project, including assisted living facilities (or, upon the approval of the Secretary, facilities located in the community where the project sponsor refinances a project under this section, or pools shared resources from more than 1 such project); or (4) rent reduction of unassisted tenants residing in the project according to a pro rata allocation of shared savings resulting from the refinancing. (d) Use of Certain Project Funds.--The Secretary shall allow a project sponsor that is prepaying and refinancing a project under this section-- (1) to use any residual receipts held for that project in excess of $500 per individual dwelling unit for not more than 15 percent of the cost of activities designed to increase the availability or provision of supportive services; and (2) to use any reserves for replacement in excess of $1,000 per individual dwelling unit for activities described in paragraphs (2) and (3) of subsection (c). (e) Budget Act Compliance.--This section shall be effective only to extent or in such amounts that are provided in advance in appropriation Acts. TITLE II--AUTHORIZATION OF APPROPRIATIONS FOR SUPPORTIVE HOUSING FOR THE ELDERLY AND PERSONS WITH DISABILITIES SEC. 201. SUPPORTIVE HOUSING FOR ELDERLY PERSONS. Section 202 of the Housing Act of 1959 (12 U.S.C. 1701q) is amended by adding at the end the following: ``(m) Authorization of Appropriations.--There is authorized to be appropriated for providing assistance under this section $700,000,000 for fiscal year 2001 and such sums as may be necessary for each of fiscal years 2002, 2003, and 2004. Of the amount provided in appropriation Acts for assistance under this section in each such fiscal year, 5 percent shall be available only for providing assistance in accordance with the requirements under subsection (c)(4) (relating to matching funds), except that if there are insufficient eligible applicants for such assistance, any amount remaining shall be used for assistance under this section.''. SEC. 202. SUPPORTIVE HOUSING FOR PERSONS WITH DISABILITIES. Section 811 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013) is amended by striking subsection (m) and inserting the following: ``(m) Authorization of Appropriations.--There is authorized to be appropriated for providing assistance under this section $225,000,000 for fiscal year 2001 and such sums as may be necessary for each of fiscal years 2002, 2003, and 2004. Of the amount provided in appropriation Acts for assistance under this section in each such fiscal year, 5 percent shall be available only for providing assistance in accordance with the requirements under subsection (d)(5) (relating to matching funds), except that if there are insufficient eligible applicants for such assistance, any amount remaining shall be used for assistance under this section.''. SEC. 203. SERVICE COORDINATORS AND CONGREGATE SERVICES FOR ELDERLY AND DISABLED HOUSING. There is authorized to be appropriated to the Secretary $50,000,000 for fiscal year 2001, and such sums as may be necessary for each of fiscal years 2002, 2003, and 2004, for the following purposes: (1) Grants for service coordinators for certain federally assisted multifamily housing.--For grants under section 676 of the Housing and Community Development Act of 1992 (42 U.S.C. 13632) for providing service coordinators. (2) Congregate services for federally assisted housing.-- For contracts under section 802 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8011) to provide congregate services programs for eligible residents of eligible housing projects under subparagraphs (B) through (D) of subsection (k)(6) of such section. TITLE III--EXPANDING HOUSING OPPORTUNITIES FOR THE ELDERLY AND PERSONS WITH DISABILITIES Subtitle A--Housing for the Elderly SEC. 301. MATCHING GRANT PROGRAM. Section 202 of the Housing Act of 1959 (12 U.S.C. 1701q) is amended-- (1) in subsection (b), in the second sentence, by inserting ``or through matching grants under subsection (c)(4)'' after ``subsection (c)(1)''; and (2) in subsection (c), by adding at the end the following: ``(4) Matching grants.-- ``(A) In general.-- ``(i) 15 percent minimum.--Amounts made available for assistance under this paragraph shall be used only for capital advances in accordance with paragraph (1), except that the Secretary shall require that, as a condition of providing assistance under this paragraph for a project, the applicant for assistance shall supplement the assistance with amounts from sources other than this section in an amount that is not less than 15 percent of the amount of assistance provided pursuant to this paragraph for the project. ``(ii) Preference.--In providing assistance under this paragraph, the Secretary shall take into consideration the degree to which the applicant will supplement that assistance with amounts from sources other than this section and, all other factors being equal, shall give preference to applicants whose supplemental assistance is equal to the highest percentage of the amount of assistance provided pursuant to this paragraph for the project. ``(B) Requirement for non-federal funds.--Not less than 50 percent of supplemental amounts provided for a project pursuant to subparagraph (A) shall be from non-Federal sources. Such supplemental amounts may include the value of any in-kind contributions, including donated land, structures, equipment, and other contributions as the Secretary considers appropriate, but only if the existence of such in-kind contributions results in the construction of more dwelling units than would have been constructed absent such contributions. ``(C) Income eligibility.--Notwithstanding any other provision of this section, the Secretary shall provide that, in a project assisted under this paragraph, a number of dwelling units may be made available for occupancy by elderly persons who are not very low-income persons in a number such that the ratio that the number of dwelling units in the project so occupied bears to the total number of units in the project does not exceed the ratio that the amount from non- Federal sources provided for the project pursuant to this paragraph bears to the sum of the capital advances provided for the project [[Page S5244]] under this paragraph and all supplemental amounts for the project provided pursuant to this paragraph.''. SEC. 302. ELIGIBILITY OF FOR-PROFIT LIMITED PARTNERSHIPS. Section 202(k)(4) of the Housing Act of 1959 (12 U.S.C. 1701q(k)(4)) is amended by inserting after subparagraph (C) the following: ``Such term includes a for-profit limited partnership the sole general partner of which is an organization meeting the requirements under subparagraphs (A), (B), and (C), or a corporation wholly owned and controlled by an organization meeting the requirements under subparagraphs (A), (B), and (C).''. SEC. 303. MIXED FUNDING SOURCES. Section 202(h)(6) of the Housing Act of 1959 (12 U.S.C. 1701q(h)(6)) is amended by striking ``non-Federal sources'' and inserting ``sources other than this section''. SEC. 304. AUTHORITY TO ACQUIRE STRUCTURES. Section 202 of the Housing Act of 1959 (12 U.S.C. 1701q) is amended-- (1) in subsection (b), by striking ``from the Resolution Trust Corporation''; and (2) in subsection (h)(2)-- (A) in the paragraph heading, by striking ``RTC properties'' and inserting ``Acquisition''; and (B) by striking ``from the Resolution'' and all that follows through ``Insurance Act''. SEC. 305. MIXED-INCOME OCCUPANCY. (a) In General.--The first sentence of section 202(i)(1) of the Housing Act of 1959 (12 U.S.C. 1701q(i)(1)) is amended by striking ``and (B)'' and inserting the following: ``(B) notwithstanding subparagraph (A) and in the case only of a supportive housing project for the elderly that has a high vacancy level (as defined by the Secretary, except that such term shall not include vacancy upon the initial availability of units in a building), consistent with the purpose of improving housing opportunities for very low- and low-income elderly persons; and (C).''. (b) Availability of Units.--Section 202(i) of the Housing Act of 1959 (12 U.S.C. 1701q(i)) is amended by adding at the end the following: ``(3) Availability of units.--In the case of a supportive housing project described in paragraph (1)(B) that has a vacant dwelling unit, an owner may not make a dwelling unit available for occupancy by, nor make any commitment to provide occupancy in the unit to-- ``(A) a low-income family that is not a very low-income family unless each eligible very low-income family that has applied for occupancy in the project has been offered an opportunity to accept occupancy in a unit in the project; and ``(B) a low-income elderly person who is not a very low- income elderly person, unless the owner certifies to the Secretary that the owner has engaged in affirmative marketing and outreach to very low-income elderly persons.''. (b) Conforming Amendments.--Section 202 of the Housing Act of 1959 (12 U.S.C. 1701q) is amended-- (1) in subsection (c)-- (A) in paragraph (1), by inserting before ``in accordance with this section'' the following: ``, and for low-income elderly persons to the extent such occupancy is made available pursuant to subsection (i)(1)(B),''; (B) in the first sentence of paragraph (2), by inserting after ``elderly persons'' the following: ``or by low-income elderly persons (to the extent such occupancy is made available pursuant to subsection (i)(1)(B))''; and (C) in paragraph (3), by inserting after ``very low-income person'' the following: ``or a low-income person (to the extent such occupancy is made available pursuant to subsection (i)(1)(B))''; (2) in subsection (d)(1), by inserting after ``elderly persons'' the following: ``, and low-income elderly persons to the extent such occupancy is made available pursuant to subsection (i)(1)(B),''; and (3) in subsection (k)-- (A) by redesignating paragraphs (3) through (8) as paragraphs (4) through (9), respectively; and (B) by inserting after paragraph (2) the following: ``(3) Low-income.--The term `low-income' has the meaning given the term `low-income families' under section 3(b)(2) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)(2)).''. SEC. 306. USE OF PROJECT RESERVES. Section 202(j) of the Housing Act of 1959 (12 U.S.C. 1701q(j)) is amended by adding at the end the following: ``(8) Use of project reserves.--Amounts for project reserves for a project assisted under this section may be used for costs, subject to reasonable limitations as the Secretary determines appropriate, for reducing the number of dwelling units in the project. Such use shall be subject to the approval of the Secretary to ensure that the use is designed to retrofit units that are currently obsolete or unmarketable.''. SEC. 307. COMMERCIAL ACTIVITIES. Section 202(h)(1) of the Housing Act of 1959 (12 U.S.C. 1701q(h)(1)) is amended by adding at the end the following: ``Neither this section nor any other provision of law may be construed as prohibiting or preventing the location and operation, in a project assisted under this section, of commercial facilities for the benefit of residents of the project and the community in which the project is located, except that assistance made available under this section may not be used to subsidize any such commercial facility.''. SEC. 308. MIXED FINANCE PILOT PROGRAM. (a) Authority.--The Secretary shall carry out a pilot program under this section to determine the effectiveness and feasibility of providing assistance under section 202 of the Housing Act of 1959 (12 U.S.C. 1701q) for housing projects that are used both for supportive housing for the elderly and for other types of housing, which may include market rate housing. (b) Scope.--Under the pilot program the Secretary shall provide, to the extent that sufficient approvable applications for such assistance are received, assistance in the manner provided under subsection (d) for not more than 5 housing projects. (c) Mixed Use.--The Secretary shall, for a project to be assisted under the pilot program-- (1) require that a minimum number of the dwelling units in the project be reserved for use in accordance with, and subject to, the requirements applicable to units assisted under section 202 of the Housing Act of 1959, such that the ratio that the number of dwelling units in the project so reserved bears to the total number of units in the project is not less than the ratio that the amount of assistance from such section 202 used for the project pursuant to subsection (d) bears to the total amount of assistance provided for the project under this section; and (2) provide that the remainder of the dwelling units in the project may be used for assistance to persons who are not very low-income. (d) Financing.--The Secretary may use amounts provided for assistance under section 202 of the Housing Act of 1959 for assistance under the pilot program for capital advances in accordance with subsection (c)(1) of such section and project rental assistance in accordance with subsection (c)(2) of such section, only for dwelling units described in subsection (c)(1) of this section. Any assistance provided pursuant to subsection (c)(1) of such section 202 shall be provided in the form of a capital advance, subject to repayment as provided in such subsection, and shall not be structured as a loan. The Secretary shall take such action as may be necessary to ensure that the repayment contingency under such subsection is enforceable for projects assisted under the pilot program and to provide for appropriate protections of the interests of the Secretary in relation to other interests in the projects so assisted. (e) Report.--Not later than 2 years after assistance is initially made available under the pilot program under this section, the Secretary shall submit to Congress a report on the results of the pilot program. SEC. 309. GRANTS FOR CONVERSION OF ELDERLY HOUSING TO ASSISTED LIVING FACILITIES. Title II of the Housing Act of 1959 is amended by inserting after section 202a (12 U.S.C. 1701q-1) the following: ``SEC. 202B. GRANTS FOR CONVERSION OF ELDERLY HOUSING TO ASSISTED LIVING FACILITIES. ``(a) Grant Authority.--The Secretary of Housing and Urban Development may make grants in accordance with this section to owners of eligible projects described in subsection (b) for 1 or both of the following activities: ``(1) Repairs.--Substantial capital repairs to a project that are needed to rehabilitate, modernize, or retrofit aging structures, common areas, or individual dwelling units. ``(2) Conversion.--Activities designed to convert dwelling units in the eligible project to assisted living facilities for elderly persons. ``(b) Eligible Projects.-- ``(1) In general.--An eligible project described in this subsection is a multifamily housing project that is-- ``(A) described in subparagraph (B), (C), (D), (E), (F), or (G) of section 683(2) of the Housing and Community Development Act of 1992 (42 U.S.C. 13641(2)), or (B) only to the extent amounts of the Department of Agriculture are made available to the Secretary of Housing and Urban Development for such grants under this section for such projects, subject to a loan made or insured under section 515 of the Housing Act of 1949 (42 U.S.C. 1485); ``(B) owned by a private nonprofit organization (as such term is defined in section 202); and ``(C) designated primarily for occupancy by elderly persons. ``(2) Unused or underutilized commercial property.-- Notwithstanding any other provision of this subsection or this section, an unused or underutilized commercial property may be considered an eligible project under this subsection, except that the Secretary may not provide grants under this section for more than 3 such properties. For any such projects, any reference under this section to dwelling units shall be considered to refer to the premises of such properties. ``(c) Applications.--Applications for grants under this section shall be submitted to the Secretary in accordance with such procedures as the Secretary shall establish. Such applications shall contain-- ``(1) a description of the substantial capital repairs or the proposed conversion activities for which a grant under this section is requested; ``(2) the amount of the grant requested to complete the substantial capital repairs or conversion activities; ``(3) a description of the resources that are expected to be made available, if any, in conjunction with the grant under this section; and [[Page S5245]] ``(4) such other information or certifications that the Secretary determines to be necessary or appropriate. ``(d) Funding for Services.--The Secretary may not make a grant under this section for conversion activities unless the application contains sufficient evidence, in the determination of the Secretary, of firm commitments for the funding of services to be provided in the assisted living facility, which may be provided by third parties. ``(e) Selection Criteria.--The Secretary shall select applications for grants under this section based upon selection criteria, which shall be established by the Secretary and shall include-- ``(1) in the case of a grant for substantial capital repairs, the extent to which the project to be repaired is in need of such repair, including such factors as the age of improvements to be repaired, and the impact on the health and safety of residents of failure to make such repairs; ``(2) in the case of a grant for conversion activities, the extent to which the conversion is likely to provide assisted living facilities that are needed or are expected to be needed by the categories of elderly persons that the assisted living facility is intended to serve, with a special emphasis on very low-income elderly persons who need assistance with activities of daily living; ``(3) the inability of the applicant to fund the repairs or conversion activities from existing financial resources, as evidenced by the applicant's financial records, including assets in the applicant's residual receipts account and reserves for replacement account; ``(4) the extent to which the applicant has evidenced community support for the repairs or conversion, by such indicators as letters of support from the local community for the repairs or conversion and financial contributions from public and private sources; ``(5) in the case of a grant for conversion activities, the extent to which the applicant demonstrates a strong commitment to promoting the autonomy and independence of the elderly persons that the assisted living facility is intended to serve; ``(6) in the case of a grant for conversion activities, the quality, completeness, and managerial capability of providing the services which the assisted living facility intends to provide to elderly residents, especially in such areas as meals, 24-hour staffing, and on-site health care; and ``(7) such other criteria as the Secretary determines to be appropriate to ensure that funds made available under this section are used effectively. ``(f) Definitions.--In this section-- ``(1) the term `assisted living facility' has the meaning given such term in section 232(b) of the National Housing Act (12 U.S.C. 1715w(b)); and ``(2) the definitions in section 202(k) shall apply. ``(g) Authorization of Appropriations.--There is authorized to be appropriated for providing grants under this section such sums as may be necessary for each of fiscal years 2001, 2002, 2003, and 2004.''. SEC. 310. GRANTS FOR CONVERSION OF PUBLIC HOUSING PROJECTS TO ASSISTED LIVING FACILITIES. Title I of the United States Housing Act of 1937 (42 U.S.C. 1437 et seq.) is amended by adding at the end the following: ``SEC. 36. GRANTS FOR CONVERSION OF PUBLIC HOUSING TO ASSISTED LIVING FACILITIES. ``(a) Grant Authority.--The Secretary may make grants in accordance with this section to public housing agencies for use for activities designed to convert dwelling units in an eligible projects described in subsection (b) to assisted living facilities for elderly persons. ``(b) Eligible Projects.--An eligible project described in this subsection is a public housing project (or a portion thereof) that has been designated under section 7 for occupancy only by elderly persons. ``(c) Applications.--Applications for grants under this section shall be submitted to the Secretary in accordance with such procedures as the Secretary shall establish. Such applications shall contain-- ``(1) a description of the proposed conversion activities for which a grant under this section is requested; ``(2) the amount of the grant requested; ``(3) a description of the resources that are expected to be made available, if any, in conjunction with the grant under this section; and ``(4) such other information or certifications that the Secretary determines to be necessary or appropriate. ``(d) Funding for Services.--The Secretary may not make a grant under this section unless the application contains sufficient evidence, in the determination of the Secretary, of firm commitments for the funding of services to be provided in the assisted living facility. ``(e) Selection Criteria.--The Secretary shall select applications for grants under this section based upon selection criteria, which shall be established by the Secretary and shall include-- ``(1) the extent to which the conversion is likely to provide assisted living facilities that are needed or are expected to be needed by the categories of elderly persons that the assisted living facility is intended to serve; ``(2) the inability of the public housing agency to fund the conversion activities from existing financial resources, as evidenced by the agency's financial records; ``(3) the extent to which the agency has evidenced community support for the conversion, by such indicators as letters of support from the local community for the conversion and financial contributions from public and private sources; ``(4) extent to which the applicant demonstrates a strong commitment to promoting the autonomy and independence of the elderly persons that the assisted living facility is intended to serve; ``(5) the quality, completeness, and managerial capability of providing the services which the assisted living facility intends to provide to elderly residents, especially in such areas as meals, 24-hour staffing, and on-site health care; and ``(6) such other criteria as the Secretary determines to be appropriate to ensure that funds made available under this section are used effectively. ``(f) Definition.--In this section, the term `assisted living facility' has the meaning given such term in section 232(b) of the National Housing Act (12 U.S.C. 1715w(b)). ``(g) Authorization of Appropriations.--There is authorized to be appropriated for providing grants under this section such sums as may be necessary for each of fiscal years 2001, 2002, 2003, and 2004.''. SEC. 311. ANNUAL HUD INVENTORY OF ASSISTED HOUSING DESIGNATED FOR ELDERLY PERSONS. Subtitle D of title VI of the Housing and Community Development Act of 1992 (42 U.S.C. 13611 et seq.) is amended by adding at the end the following: ``SEC. 662. ANNUAL INVENTORY OF ASSISTED HOUSING DESIGNATED FOR ELDERLY PERSONS. ``(a) In General.--The Secretary shall establish and maintain, and on an annual basis shall update and publish, an inventory of housing that-- ``(1) is assisted under a program of the Department of Housing and Urban Development, including all federally assisted housing; and ``(2) is designated, in whole or in part, for occupancy by elderly families or disabled families, or both. ``(b) Contents.--The inventory required under this section shall identify housing described in subsection (a) and the number of dwelling units in such housing that-- ``(1) are in projects designated for occupancy only by elderly families; ``(2) are in projects designated for occupancy only by disabled families; ``(3) contain special features or modifications designed to accommodate persons with disabilities and are in projects designated for occupancy only by disabled families; ``(4) are in projects for which a specific percentage or number of the dwelling units are designated for occupancy only by elderly families; ``(5) are in projects for which a specific percentage or number of the dwelling units are designated for occupancy only by disabled families; and ``(6) are in projects designed for occupancy only by both elderly or disabled families. ``(c) Publication.--The Secretary shall annually publish the inventory required under this section in the Federal Register and shall make the inventory available to the public by posting on a World Wide Web site of the Department.''. SEC. 312. TREATMENT OF APPLICATIONS. Notwithstanding any other provision of law or any regulation of the Secretary, in the case of any denial of an application for assistance under section 202 of the Housing Act of 1959 (12 U.S.C. 1701q) for failure to timely provide information required by the Secretary, the Secretary shall notify the applicant of the failure and provide the applicant an opportunity to show that the failure was due to the failure of a third party to provide information under the control of the third party. If the applicant demonstrates, within a reasonable period of time after notification of such failure, that the applicant did not have such information but requested the timely provision of such information by the third party, the Secretary may not deny the application solely on the grounds of failure to timely provide such information. Subtitle B--Housing for Persons With Disabilities SEC. 321. MATCHING GRANT PROGRAM. Section 811 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013) is amended-- (1) in subsection (b)(2)(A), by inserting ``or through matching grants under subsection (d)(5)'' after ``subsection (d)(1)''; and (2) in subsection (d), by adding at the end the following: ``(5) Matching grants.-- ``(A) In general.-- ``(i) 15 percent minimum.--Amounts made available for assistance under this paragraph shall be used only for capital advances in accordance with paragraph (1), except that the Secretary shall require that, as a condition of providing assistance under this paragraph for a project, the applicant for assistance shall supplement the assistance with amounts from sources other than this section in an amount that is not less than 15 percent of the amount of assistance provided pursuant to this paragraph for the project. ``(ii) Preference.--In providing assistance under this paragraph, the Secretary shall take into consideration the degree to which the applicant will supplement that assistance with amounts from sources other than this section and, all other factors being equal, shall give preference to applicants whose supplemental assistance is equal to [[Page S5246]] the highest percentage of the amount of assistance provided pursuant to this paragraph for the project. ``(B) Requirement for non-federal funds.--Not less than 50 percent of supplemental amounts provided for a project pursuant to subparagraph (A) shall be from non-Federal sources. Such supplemental amounts may include the value of any in-kind contributions, including donated land, structures, equipment, and other contributions as the Secretary considers appropriate, but only if the existence of such in-kind contributions results in the construction of more dwelling units than would have been constructed absent such contributions. ``(C) Income eligibility.--Notwithstanding any other provision of this section, the Secretary shall provide that, in a project assisted under this paragraph, a number of dwelling units may be made available for occupancy by persons with disabilities who are not very low-income persons in a number such that the ration that the number of dwelling units in the project so occupied bears to the total number of units in the project does not exceed the ratio that the amount from non-Federal sources provided for the project pursuant to this paragraph bears to the sum of the capital advances provided for the project under this paragraph and all supplemental amounts for the project provided pursuant to this paragraph.''. SEC. 322. ELIGIBILITY OF FOR-PROFIT LIMITED PARTNERSHIPS. Section 811(k)(6) of the Housing Act of 1959 (42 U.S.C. 8013(k)(6)) is amended by inserting after subparagraph (D) the following: ``Such term includes a for-profit limited partnership the sole general partner of which is an organization meeting the requirements under subparagraphs (A), (B), (C), and (D) or a corporation wholly owned and controlled by an organization meeting the requirements under subparagraphs (A), (B), (C), and (D).''. SEC. 323. MIXED FUNDING SOURCES. Section 811(h)(5) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013(h)(5)) is amended by striking ``non-Federal sources'' and inserting ``sources other than this section''. SEC. 324. TENANT-BASED ASSISTANCE. Section 811 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013) is amended-- (1) in subsection (d), by striking paragraph (4) and inserting the following: ``(4) Tenant-based rental assistance.-- ``(A) Administering entities.--Tenant-based rental assistance provided under subsection (b)(1) may be provided only through a public housing agency that has submitted and had approved an plan under section 7(d) of the United States Housing Act of 1937 (42 U.S.C. 1437e(d)) that provides for such assistance, or through a private nonprofit organization. A public housing agency shall be eligible to apply under this section only for the purposes of providing such tenant-based rental assistance. ``(B) Program rules.--Tenant-based rental assistance under subsection (b)(1) shall be made available to eligible persons with disabilities and administered under the same rules that govern tenant-based rental assistance made available under section 8 of the United States Housing Act of 1937, except that the Secretary may waive or modify such rules, but only to the extent necessary to provide for administering such assistance under subsection (b)(1) through private nonprofit organizations rather than through public housing agencies. ``(C) Allocation of assistance.--In determining the amount of assistance provided under subsection (b)(1) for a private nonprofit organization or public housing agency, the Secretary shall consider the needs and capabilities of the organization or agency, in the case of a public housing agency, as described in the plan for the agency under section 7 of the United States Housing Act of 1937.''; and (2) in subsection (l)(1)-- (A) by striking ``subsection (b)'' and inserting ``subsection (b)(2)''; (B) by striking the last comma and all that follows through ``subsection (n)''; and (C) by adding at the end the following: ``Notwithstanding any other provision of this section, the Secretary may use not more than 25 percent of the total amounts made available for assistance under this section for any fiscal year for tenant-based rental assistance under subsection (b)(1) for persons with disabilities, and no authority of the Secretary to waive provisions of this section may be used to alter the percentage limitation under this sentence.''. SEC. 325. USE OF PROJECT RESERVES. Section 811(j) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013(j)) is amended by adding at the end the following: ``(7) Use of project reserves.--Amounts for project reserves for a project assisted under this section may be used for costs, subject to reasonable limitations as the Secretary determines appropriate, for reducing the number of dwelling units in the project. Such use shall be subject to the approval of the Secretary to ensure that the use is designed to retrofit units that are currently obsolete or unmarketable.''. SEC. 326. COMMERCIAL ACTIVITIES. Section 811(h)(1) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 8013(h)(1)) is amended by adding at the end the following: ``Neither this section nor any other provision of law may be construed as prohibiting or preventing the location and operation, in a project assisted under this section, of commercial facilities for the benefit of residents of the project and the community in which the project is located, except that assistance made available under this section may not be used to subsidize any such commercial facility.''. Subtitle C--Other Provisions SEC. 341. SERVICE COORDINATORS. (a) Increased Flexibility for Use of Service Coordinators in Certain Federally Assisted Housing.--Section 676 of the Housing and Community Development Act of 1992 (42 U.S.C. 13632) is amended-- (1) in the section heading, by striking ``MULTIFAMILY HOUSING ASSISTED UNDER NATIONAL HOUSING ACT'' and inserting ``CERTAIN FEDERALLY ASSISTED HOUSING''; (2) in subsection (a)-- (A) in the first sentence, by striking ``(E) and (F)'' and inserting ``(B), (C), (D), (E), (F), and (G)''; and (B) in the last sentence-- (i) by striking ``section 661'' and inserting ``section 671''; and (ii) by adding at the end the following: ``A service coordinator funded with a grant under this section for a project may provide services to low-income elderly or disabled families living in the vicinity of such project.''; (3) in subsection (d)-- (A) by striking ``(E) or (F)'' and inserting ``(B), (C), (D), (E), (F), or (G)''; and (B) by striking ``section 661'' and inserting ``section 671''; and (4) by striking subsection (c) and redesignating subsection (d) (as amended by paragraph (3) of this subsection) as subsection (c). (b) Requirement To Provide Service Coordinators.--Section 671 of the Housing and Community Development Act of 1992 (42 U.S.C. 13631) is amended-- (1) in the first sentence of subsection (a), by striking ``to carry out this subtitle pursuant to the amendments made by this subtitle'' and inserting the following: ``for providing service coordinators under this section''; (2) in subsection (d), by inserting ``)'' after ``section 683(2)''; and (3) by adding at the end following: ``(e) Services for Low-Income Elderly or Disabled Families Residing in Vicinity of Certain Projects.--To the extent only that this section applies to service coordinators for covered federally assisted housing described in subparagraphs (B), (C), (D), (E), (F), and (G) of section 683(2), any reference in this section to elderly or disabled residents of a project shall be construed to include low-income elderly or disabled families living in the vicinity of such project.''. (c) Protection Against Telemarketing Fraud.-- (1) Supportive housing for the elderly.--The first sentence of section 202(g)(1) of the Housing Act of 1959 (12 U.S.C. 1701q(g)(1)) is amended by striking ``and (F)'' and inserting the following: ``(F) providing education and outreach regarding telemarketing fraud, in accordance with the standards issued under section 671(f) of the Housing and Community Development Act of 1992 (42 U.S.C. 13631(f)); and (G)''. (2) Other federally assisted housing.--Section 671 of the Housing and Community Development Act of 1992 (42 U.S.C. 13631), as amended by subsection (b) of this section, is further amended-- (A) in the first sentence of subsection (c), by inserting after ``response,'' the following: ``education and outreach regarding telemarketing fraud in accordance with the standards issued under subsection (f),''; and (B) by adding at the end the following: ``(f) Protection Against Telemarketing Fraud.-- ``(1) In general.--The Secretary, in coordination with the Secretary of Health and Human Services, shall establish standards for service coordinators in federally assisted housing who are providing education and outreach to elderly persons residing in such housing regarding telemarketing fraud. The standards shall be designed to ensure that such education and outreach informs such elderly persons of the dangers of telemarketing fraud and facilitates the investigation and prosecution of telemarketers engaging in fraud against such residents. ``(2) Contents.--The standards established under this subsection shall require that any such education and outreach be provided in a manner that-- ``(A) informs such residents of-- ``(i) the prevalence of telemarketing fraud targeted against elderly persons; ``(ii) how telemarketing fraud works; ``(iii) how to identify telemarketing fraud; ``(iv) how to protect themselves against telemarketing fraud, including an explanation of the dangers of providing bank account, credit card, or other financial or personal information over the telephone to unsolicited callers; ``(v) how to report suspected attempts at telemarketing fraud; and ``(vi) their consumer protection rights under Federal law; ``(B) provides such other information as the Secretary considers necessary to protect such residents against fraudulent telemarketing; and ``(C) disseminates the information provided by appropriate means, and in determining such appropriate means, the Secretary shall consider on-site presentations at federally [[Page S5247]] assisted housing, public service announcements, a printed manual or pamphlet, an Internet website, and telephone outreach to residents whose names appear on `mooch lists' confiscated from fraudulent telemarketers.''. TITLE IV--PRESERVATION OF AFFORDABLE HOUSING STOCK SEC. 401. MATCHING GRANT PROGRAM FOR AFFORDABLE HOUSING PRESERVATION. (a) Findings and Purposes.-- (1) Findings.--Congress finds that-- (A) availability of low-income housing rental units has declined nationwide in the last several ye