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U.S. Code as of:
01/19/04
Section 1701q. 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) of this section, and (2) contracts for project rental
assistance in accordance with subsection (c)(2) of this section.
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, 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) of this section.
(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) of this section 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) of this section;
(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 public official responsible for
submitting a housing strategy for the jurisdiction to be served
in accordance with section 12705 of title 42 that the proposed
project is consistent with the approved housing strategy; and
(6) 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, taking into consideration the availability of
public housing for the elderly and vacancy rates in such
facilities;
(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) of this
section 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; (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) such other
services as the Secretary deems essential for maintaining
independent living. The Secretary may permit the provision of
services to elderly persons 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) of this section.
(3) Service coordinators
Any cost associated with employing or otherwise retaining a
service coordinator in housing assisted under this section shall
be considered an eligible cost under subsection (c)(2) of this
section. If a project is receiving congregate housing services
assistance under section 8011 of title 42, the amount of costs
provided under subsection (c)(2) of this section for the project
service coordinator may not exceed the additional amount
necessary to cover the costs of providing for the coordination of
services for residents of the project who are not eligible
residents under such section 8011 of title 42. To the extent that
amounts are available pursuant to subsection (c)(2) of this
section for the costs of carrying out this paragraph within a
project, an owner of housing assisted under this section shall
provide a service coordinator for the housing to coordinate the
provision of services under this subsection within the housing.
(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 12709 of title 42; 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. 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.
(2) Acquisition
In the case of existing housing and related facilities to be
acquired, 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 12709 of title 42;
(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
An owner shall be permitted voluntarily to provide funds from
sources other than this section 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. Notwithstanding any other provision of
law, assistance amounts provided under this section may be
treated as amounts not derived from a Federal grant.
(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
elderly persons; and (B) reasonably related to program
eligibility and an applicant's ability to perform the obligations
of the lease. Such tenant selection procedures shall comply with
subtitle C of title VI of the Housing and Community Development
Act of 1992 [42 U.S.C. 13601 et seq.] and any regulations issued
under such subtitle. 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 [42 U.S.C. 2000d et seq.], the Fair
Housing Act [42 U.S.C. 3601 et seq.], 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. The Secretary shall reduce or waive the requirement of
the owner deposit under paragraph (1) in the case of a
nonprofit applicant that is not affiliated with a national
sponsor, as determined by the Secretary.
(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
The Secretary shall take such action as may be necessary to
ensure that all laborers and mechanics employed by contractors
and subcontractors in the construction of housing with 12 or
more units assisted under this section shall be paid wages at
rates not less than the rates prevailing in the locality
involved for the corresponding classes of laborers and
mechanics employed on construction of a similar character, as
determined by the Secretary of Labor in accordance with
sections 3141-3144, 3146, and 3147 of title 40.
(B) Exemption
Subparagraph (A) shall not apply to any individual who -
(i) performs services for which the individual volunteered;
(ii)(I) does not receive compensation for such services; or
(II) is paid expenses, reasonable benefits, or a nominal
fee for such services; and
(iii) is not otherwise employed at any time in the
construction work.
(6) Access to residual receipts
The Secretary shall authorize the owner of a project assisted
under this section to use any residual receipts held for the
project in excess of $500 per unit (or in excess of such other
amount prescribed by the Secretary based on the needs of the
project) for activities to retrofit and renovate the project
described under section 8011(d)(3) of title 42, to provide a
service coordinator for the project as described in section
8011(d)(4) of title 42, or to provide supportive services (as
such term is defined in section 8011(k) of title 42) to residents
of the project. Any owner that uses residual receipts under this
paragraph shall submit to the Secretary a report, not less than
annually, describing the uses of the residual receipts. In
determining the amount of project rental assistance to be
provided to a project under subsection (c)(2) of this section,
the Secretary may take into consideration the residual receipts
held for the project only if, and to the extent that, excess
residual receipts are not used under this paragraph.
(7) Compliance with Housing and Community Development Act of 1992
Each owner shall operate housing assisted under this section in
compliance with subtitle C of title VI of the Housing and
Community Development Act of 1992 [42 U.S.C. 13601 et seq.] and
any regulations issued under such subtitle.
(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.
(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.
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).
(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 1437a(b)(2) of title
42.
(l) Allocation of funds
(1) Capital advances
Of any amounts made available for assistance under this
section, such sums as may be necessary shall be available for
funding capital advances in accordance with subsection (c)(1) of
this section. Such amounts, the repayments from such advances,
and the proceeds from notes or obligations issued under this
section prior to November 28, 1990, shall constitute a revolving
fund to be used by the Secretary in carrying out this section.
(2) Project rental assistance
Of any amounts made available for assistance under this
section, such sums as may be necessary shall be available for
funding project rental assistance in accordance with subsection
(c)(2) of this section.
(3) Nonmetropolitan allocation
Not less than 15 percent of the funds made available for
assistance under this section shall be allocated by the Secretary
on a national basis for nonmetropolitan areas.
(m) Authorization of appropriations
There is authorized to be appropriated for providing assistance
under this section $710,000,000 for fiscal year 2000.
(m) (!1) Authorization of appropriations
There are authorized to be appropriated for providing assistance
under this section such sums as may be necessary for each of fiscal
years 2001, 2002, and 2003.
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