SEC-801 -- SUPPORTIVE HOUSING FOR THE ELDERLY. (a) In General.-Section 202 of the Housing Act of 1959 (12 U.S.C. 1701q) is amended to read as follows: "SEC. 202. SUPPORTIVE HOUSING FOR THE ELDERLY. "(a) Purpose.-The purpose of this section is to enable elderly persons to live with dignity and independence by expanding the supply of supportive housing that- "(1) is designed to accommodate the special needs of elderly persons; and "(2) provides a range of services that are tailored to the needs of elderly persons occupying such housing. "(b) General Authority.-The Secretary is authorized to provide assistance to private nonprofit organizations and consumer cooperatives to expand the supply of supportive housing for the elderly. Such assistance shall be provided as (1) capital advances in accordance with subsection (c)(1), and (2) contracts for project rental assistance in accordance with subsection (c)(2). Such assistance may be used to finance the construction, reconstruction, or moderate or substantial rehabilitation of a structure or a portion of a structure, or the acquisition of a structure from the Resolution Trust Corporation, to be used as supportive housing for the elderly in accordance with this section. Assistance may also cover the cost of real property acquisition, site improvement, conversion, demolition, relocation, and other expenses that the Secretary determines are necessary to expand the supply of supportive housing for the elderly. "(c) Forms of Assistance.- "(1) Capital advances.-A capital advance provided under this section shall bear no interest and its repayment shall not be required so long as the housing remains available for very low-income elderly persons in accordance with this section. Such advance shall be in an amount calculated in accordance with the development cost limitation established in subsection (h). "(2) Project rental assistance.-Contracts for project rental assistance shall obligate the Secretary to make monthly payments to cover any part of the costs attributed to units occupied (or, as approved by the Secretary, held for occupancy) by very low-income elderly persons that is not met from project income. The annual contract amount for any project shall not exceed the sum of the initial annual project rentals for all units so occupied and any initial utility allowances for such units, as approved by the Secretary. Any contract amounts not used by a project in any year shall remain available to the project until the expiration of the contract. The Secretary may adjust the annual contract amount if the sum of the project income and the amount of assistance payments available under this paragraph are inadequate to provide for reasonable project costs. "(3) Tenant rent contribution.-A very low-income person shall pay as rent for a dwelling unit assisted under this section the highest of the following amounts, rounded to the nearest dollar: (A) 30 percent of the person's adjusted monthly income, (B) 10 percent of the person's monthly income, or (C) if the person is receiving payments for welfare assistance from a public agency and a part of such payments, adjusted in accordance with the person's actual housing costs, is specifically designated by such agency to meet the person's housing costs, the portion of such payments which is so designated. "(d) Term of Commitment.- "(1) Use limitations.-All units in housing assisted under this section shall be made available for occupancy by very low-income elderly persons for not less than 40 years. "(2) Contract terms.-The initial term of a contract entered into under subsection (c)(2) shall be 240 months. The Secretary shall, to the extent approved in appropriation Acts, extend any expiring contract for a term of not less than 60 months. In order to facilitate the orderly extension of expiring contracts, the Secretary is authorized to make commitments to extend expiring contracts during the year prior to the date of expiration. "(e) Applications.-Funds made available under this section shall be allocated by the Secretary among approvable applications submitted by private nonprofit organizations. Applications for assistance under this section shall be submitted by an applicant in such form and in accordance with such procedures as the Secretary shall establish. Such applications shall contain- "(1) a description of the proposed housing; "(2) a description of the assistance the applicant seeks under this section; "(3) a description of the resources that are expected to be made available in compliance with subsection (h); "(4) a description of (A) the category or categories of elderly persons the housing is intended to serve; (B) the supportive services, if any, to be provided to the persons occupying such housing; (C) the manner in which such services will be provided to such persons, including, in the case of frail elderly persons, evidence of such residential supervision as the Secretary determines is necessary to facilitate the adequate provision of such services; and (D) the public or private sources of assistance that can reasonably be expected to fund or provide such services; "(5) a certification from the appropriate State or local agency (as determined by the Secretary) that the provision of services identified in paragraph (4) is well designed to serve the special needs of the category or categories of elderly persons the housing is intended to serve; "(6) a certification from the public official responsible for submitting a housing strategy for the jurisdiction to be served in accordance with section 105 of the Cranston-Gonzalez National Affordable Housing Act that the proposed project is consistent with the approved housing strategy; and "(7) such other information or certifications that the Secretary determines to be necessary or appropriate to achieve the purposes of this section. The Secretary shall not reject an application on technical grounds without giving notice of that rejection and the basis therefor to the applicant and affording the applicant an opportunity to respond. "(f) Selection Criteria.-The Secretary shall establish selection criteria for assistance under this section, which shall include- "(1) the ability of the applicant to develop and operate the proposed housing; "(2) the need for supportive housing for the elderly in the area to be served; "(3) the extent to which the proposed size and unit mix of the housing will enable the applicant to manage and operate the housing efficiently and ensure that the provision of supportive services will be accomplished in an economical fashion; "(4) the extent to which the proposed design of the housing will meet the special physical needs of elderly persons; "(5) the extent to which the applicant has demonstrated that the supportive services identified in subsection (e)(4) will be provided on a consistent, long-term basis; "(6) the extent to which the proposed design of the housing will accommodate the provision of supportive services that are expected to be needed, either initially or over the useful life of the housing, by the category or categories of elderly persons the housing is intended to serve; and "(7) such other factors as the Secretary determines to be appropriate to ensure that funds made available under this section are used effectively. "(g) Provisions of Services.- "(1) In general.-In carrying out the provisions of this section, the Secretary shall ensure that housing assisted under this section provides a range of services tailored to the needs of the category or categories of elderly persons (including frail elderly persons) occupying such housing. Such services may include (A) meal service adequate to meet nutritional need; (B) housekeeping aid; (C) personal assistance; (D) transportation services; (E) health-related services; and (F) such other services as the Secretary deems essential for maintaining independent living. The Secretary may permit the provision of services to elderly persons and persons with disabilities who are not residents if the participation of such persons will not adversely affect the cost-effectiveness or operation of the program or add significantly to the need for assistance under this Act. "(2) Local coordination of services.-The Secretary shall ensure that owners have the managerial capacity to- "(A) assess on an ongoing basis the service needs of residents; "(B) coordinate the provision of supportive services and tailor such services to the individual needs of residents; and "(C) seek on a continuous basis new sources of assistance to ensure the long-term provision of supportive services. Any cost associated with this subsection shall be an eligible cost under subsection (c)(2). Any cost associated with the employment of a service coordinator in housing principally serving frail elderly persons shall also be an eligible cost except where the project is receiving congregate housing services assistance under section 802 of the Cranston-Gonzalez National Affordable Housing Act. "(h) Development Cost Limitations.- "(1) In general.-The Secretary shall periodically establish development cost limitations by market area for various types and sizes of supportive housing for the elderly by publishing a notice of the cost limitations in the Federal Register. The cost limitations shall reflect- "(A) the cost of construction, reconstruction, or rehabilitation of supportive housing for the elderly that meets applicable State and local housing and building codes; "(B) the cost of movables necessary to the basic operation of the housing, as determined by the Secretary; "(C) the cost of special design features necessary to make the housing accessible to elderly persons; "(D) the cost of special design features necessary to make individual dwelling units meet the physical needs of elderly project residents; "(E) the cost of congregate space necessary to accommodate the provision of supportive services to elderly project residents; "(F) if the housing is newly constructed, the cost of meeting the energy efficiency standards promulgated by the Secretary in accordance with section 109 of the Cranston-Gonzalez National Affordable Housing Act; and "(G) the cost of land, including necessary site improvement. In establishing development cost limitations for a given market area under this subsection, the Secretary shall use data that reflect currently prevailing costs of construction, reconstruction, or rehabilitation, and land acquisition in the area. For purposes of this paragraph, the term `congregate space' shall include space for cafeterias or dining halls, community rooms or buildings, workshops, adult day health facilities, or other outpatient health facilities, or other essential service facilities. "(2) RTC properties.-In the case of existing housing and related facilities to be acquired from the Resolution Trust Corporation under section 21A(c) of the Federal Home Loan Bank Act, the cost limitations shall include- "(A) the cost of acquiring such housing, "(B) the cost of rehabilitation, alteration, conversion, or improvement, including the moderate rehabilitation thereof, and "(C) the cost of the land on which the housing and related facilities are located. "(3) Annual adjustments.-The Secretary shall adjust the cost limitation not less than once annually to reflect changes in the general level of construction, reconstruction, or rehabilitation costs. "(4) Incentives for savings.- "(A) Special housing account.-The Secretary shall use the development cost limitations established under paragraph (1) or (2) to calculate the amount of financing to be made available to individual owners. Owners which incur actual development costs that are less than the amount of financing shall be entitled to retain 50 percent of the savings in a special housing account. Such percentage shall be increased to 75 percent for owners which add energy efficiency features which- "(i) exceed the energy efficiency standards promulgated by the Secretary in accordance with section 109 of the Cranston-Gonzalez National Affordable Housing Act; "(ii) substantially reduce the life-cycle cost of the housing; "(iii) reduce gross rent requirements; and "(iv) enhance tenant comfort and convenience. "(B) Uses.-The special housing account established under subparagraph (A) may be used (i) to supplement services provided to residents of the housing or funds set aside for replacement reserves, or (ii) for such other purposes as determined by the Secretary. "(5) Design flexibility.-The Secretary shall, to the extent practicable, give owners the flexibility to design housing appropriate to their location and proposed resident population within broadly defined parameters. "(6) Use of funds from other sources.-A owner shall be permitted voluntarily to provide funds from non-Federal sources for amenities and other features of appropriate design and construction suitable for supportive housing for the elderly if the cost of such amenities is (A) not financed with the advance, and (B) is not taken into account in determining the amount of Federal assistance or of the rent contribution of tenants. "(i) Tenant Selection.- "(1) In general.-An owner shall adopt written tenant selection procedures that are satisfactory to the Secretary as (A) consistent with the purpose of improving housing opportunities for very low-income persons with disabilities; and (B) reasonably related to program eligibility and an applicant's ability to perform the obligations of the lease. Owners shall promptly notify in writing any rejected applicant of the grounds for any rejection. "(2) Information regarding housing under this section.-The Secretary shall provide to an appropriate agency in each area (which may be the applicable Area Agency on the Aging) information regarding the availability of housing assisted under this section. "(j) Miscellaneous Provisions.- "(1) Technical assistance.-The Secretary shall make available appropriate technical assistance to assure that applicants having limited resources, particularly minority applicants, are able to participate more fully in the program carried out under this section. "(2) Civil rights compliance.-Each owner shall certify, to the satisfaction of the Secretary, that assistance made available under this section will be conducted and administered in conformity with title VI of the Civil Rights Act of 1964, the Fair Housing Act, and other Federal, State, and local laws prohibiting discrimination and promoting equal opportunity. "(3) Owner deposit.- "(A) In general.-The Secretary shall require an owner to deposit an amount not to exceed $25,000 in a special escrow account to assure the owner's commitment to the housing. "(B) Reduction of requirement.-The Secretary may reduce or waive the owner deposit specified under paragraph (1) for individual applicants if the Secretary finds that such waiver or reduction is necessary to achieve the purposes of this section and the applicant demonstrates to the satisfaction of the Secretary that it has the capacity to manage and maintain the housing in accordance with this section. "(4) Notice of appeal.-The Secretary shall notify an owner not less than 30 days prior to canceling any reservation of assistance provided under this section. During the 30-day period following the receipt of a notice under the preceding sentence, an owner may appeal the proposed cancellation of loan authority. Such appeal, including review by the Secretary, shall be completed not later than 45 days after the appeal is filed. "(5) Labor.- "(A) In general.-Any contract for the construction of affordable housing with 12 or more units assisted with funds made available under this subtitle shall contain a provision requiring that not less than the wages prevailing in the locality, as predetermined by the Secretary of Labor pursuant to the Davis-Bacon Act (40 U.S.C. 276a-276a-5), shall be paid to all laborers and mechanics employed in the development of affordable housing involved, and participating jurisdictions shall require certification as to compliance with the provisions of this section prior to making any payment under such contract. "(B) Waiver.-Subparagraph (A) shall not apply if the individual receives no compensation or is paid expenses, reasonable benefits, or a nominal fee to perform the services for which the individual volunteered and such persons are not otherwise employed at any time in the construction work. "(k) Definitions.- "(1) The term `elderly person' means a household composed of one or more persons at least one of whom is 62 years of age or more at the time of initial occupancy. "(2) The term `frail elderly' means an elderly person who is unable to perform at least 3 activities of daily living adopted by the Secretary for purposes of this program. Owners may establish additional eligibility requirements (acceptable to the Secretary) based on the standards in local supportive services programs. "(3) The term `owner' means a private nonprofit organization that receives assistance under this section to develop and operate supportive housing for the elderly. "(4) The term `private nonprofit organization' means any incorporated private institution or foundation- "(A) no part of the net earnings of which inures to the benefit of any member, founder, contributor, or individual; "(B) which has a governing board (i) the membership of which is selected in a manner to assure that there is significant representation of the views of the community in which such housing is located, and (ii) which is responsible for the operation of the housing assisted under this section; and "(C) which is approved by the Secretary as to financial responsibility. "(5) The term `State' includes the several States, the District of Columbia, the Commonwealth of Puerto Rico, and the possessions of the United States. "(6) The term `Secretary' means the Secretary of Housing and Urban Development. "(7) The term `supportive housing for the elderly' means housing that is designed (A) to meet the special physical needs of elderly persons and (B) to accommodate the provision of supportive services that are expected to be needed, either initially or over the useful life of the housing, by the category or categories of elderly persons that the housing is intended to serve. "(8) The term `very low-income' has the same meaning as given the term `very low-income families' under section 3(b)(2) of the United States Housing Act of 1937. "(l) Authorizations.- "(1) Capital advances.-There are authorized to be appropriated for the purpose of funding capital advances in accordance with subsection (c)(1) $659,000,000 for fiscal year 1992. Amounts so appropriated, the repayments from such advances, and the proceeds from notes or obligations issued under this section prior to the enactment of the Cranston-Gonzalez National Affordable Housing Act shall constitute a revolving fund to be used by the Secretary in carrying out this section. "(2) Project rental assistance.-For the purpose of funding contracts for project rental assistance in accordance with subsection (c)(2) the Secretary may, to the extent approved in an appropriations Act, reserve authority to enter into obligations aggregating $363,000,000 for fiscal year 1992. "(3) Nonmetropolitan allocation.-Not less than 20 percent of the funds made available under this subtitle shall be allocated by the Secretary on a national basis for nonmetropolitan areas.". (b) Conforming Amendment.-Section 213(a) of the Housing and Community Development Act of 1974 is amended by striking "section 202 of the Housing Act of 1959". (c) Effective Date and Applicability.-The amendments made by this section shall take effect on October 1, 1991, with respect to projects approved on or after such date. The Secretary shall issue regulations for such purpose after notice and an opportunity for public comment in accordance with section 553 of title 5, United States Code. Regulations shall be issued for comment not later than 180 days after the date of enactment of this Act. (d) Expedited Financing and Construction.- (1) In general.-The Secretary may, subject to the availability of appropriations for contract amendments for the purposes of this subsection- (A) provide such adjustments and waivers to the cost limitations specified under 24 CFR 885.410(a)(1); and (B) make such adjustments to the relevant fair market rent limitations established under section 8(c)(1) of the United States Housing Act of 1937 in providing assistance under such Act, as are necessary to ensure the expedited financing and construction of qualified supportive housing for the elderly provided that the Secretary finds that any applicable cost containment rules and regulations have been satisfied. (2) Definition.-For purposes of this subsection, the term "supportive housing for the elderly" means housing- (A) located in a high-cost jurisdiction; and (B) for which a loan reservation was made under section 202 of the Housing Act of 1959, 3 years before the date of enactment of this Act but for which no loan has been executed and recorded. (e) Authorization for Existing Program.-Section 202(a)(4)(C) of the Housing Act of 1959 (12 U.S.C. 1701q(a)(4)(C)) is amended- (1) by striking all that follows "Acts" the first time it appears and inserting a period; and (2) by adding at the end the following: "For fiscal year 1991, not more than $714,200,000 may be approved in appropriation Acts for such loans.".