SEC-806 -- ELDER COTTAGE HOUSING UNITS. 

 
 (a) Eligibility for Insurance.-Section 2 of the National Housing Act
(12 U.S.C. 1703) is amended by adding at the end the following new
subsection:
 
 "(i) For purposes of this section, the term `manufactured home'
includes any elder cottage housing opportunity unit that is small,
freestanding, barrier-free, energy efficient, removable, and designed
to be installed adjacent to an existing 1- to 4-family dwelling.".
 
 (b) Demonstration Program.-
 
 (1) In general.-The Secretary of Housing and Urban Development shall
carry out a program to determine the feasibility of including as an
eligible development cost under section 202 of the Housing Act of 1959
the cost of purchasing and installing elder cottage housing opportunity
units that are small, freestanding, barrier-free, energy efficient,
removable, and designed to be installed adjacent to existing 1- to
4-family dwellings. In the conduct of the demonstration, the Secretary
shall determine whether the durability of such units is appropriate for
inclusion in the section 202 program.
 
 (2) Report.-The Secretary shall transmit a report to the Congress not
later that January 1, 1992 on the results of the demonstration under
subsection (a).