Laws: Cases and Codes : U.S. Code : Title 12 : Section 1701q-2


   
U.S. Code as of: 01/19/04
Section 1701q-2. 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) of this section for one or both of the
    following activities:
      (1) Repairs
        Substantial capital repairs to projects 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
      An eligible project described in this subsection is a multifamily
    housing project that is - 
        (1)(A) described in subparagraph (B), (C), (D), (E), (F), or
      (G) of section 13641(2) of title 42, 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 1485 of title 42;
        (2) owned by a private nonprofit organization (as such term is
      defined in section 1701q of this title); and
        (3) designated primarily for occupancy by elderly persons.

    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 three 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
        (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) Section 8 project-based assistance
      (1) Eligibility
        Notwithstanding any other provision of law, a multifamily
      project which includes one or more dwelling units that have been
      converted to assisted living facilities using grants made under
      this section shall be eligible for project-based assistance under
      section 8 of the United States Housing Act of 1937 [42 U.S.C.
      1437f], in the same manner in which the project would be eligible
      for such assistance but for the assisted living facilities in the
      project.
      (2) Calculation of rent
        For assistance pursuant to this subsection, the maximum monthly
      rent of a dwelling unit that is an assisted living facility with
      respect to which assistance payments are made shall not include
      charges attributable to services relating to assisted living.
    (g) Definitions
      For the purposes of this section - 
        (1) the term "assisted living facility" has the meaning given
      such term in section 1715w(b) of this title; and
        (2) the definitions in section 1701q(k) of this title shall
      apply.
    (h) Authorization of appropriations
      There is authorized to be appropriated for providing grants under
    this section such sums as may be necessary for fiscal year 2000.



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