P.l. 111 - 372

PUBLIC LAW 111–372—JAN. 4, 2011

124 STAT. 4077

Public Law 111–372
111th Congress
An Act
To amend section 202 of the Housing Act of 1959, to improve the program under
such section for supportive housing for the elderly, and for other purposes.

Jan. 4, 2011
[S. 118]

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 ‘‘Section 202
Supportive Housing for the Elderly Act of 2010’’.
(b) TABLE OF CONTENTS.—The table of contents for this Act
is as follows:

Section 202
Supportive
Housing for the
Elderly Act of
2010.
12 USC 1701
note.

Sec. 1. Short title and table of contents.
Sec.
Sec.
Sec.
Sec.
Sec.

101.
102.
103.
104.
105.

TITLE I—NEW CONSTRUCTION REFORMS
Selection criteria.
Development cost limitations.
Owner deposits.
Definition of private nonprofit organization.
Nonmetropolitan allocation.

Sec.
Sec.
Sec.
Sec.

201.
202.
203.
204.

TITLE II—REFINANCING
Approval of prepayment of debt.
Use of unexpended amounts.
Use of project residual receipts.
Additional provisions.

TITLE III—ASSISTED LIVING FACILITIES AND SERVICE-ENRICHED
HOUSING
Sec. 301. Amendments to the grants for conversion of elderly housing to assisted
living facilities.
Sec. 302. Monthly assistance payment under rental assistance.
TITLE IV—COMPLIANCE WITH STATUTORY PAY-AS-YOU-GO ACT OF 2010
Sec. 401. Budgetary effects.

TITLE I—NEW CONSTRUCTION
REFORMS

anorris on DSK5R6SHH1PROD with PUBLIC LAWS

SEC. 101. SELECTION CRITERIA.

Section 202(f)(1) of the Housing Act of 1959 (12 U.S.C.
1701q(f)(1)) is amended—
(1) by redesignating subparagraphs (F) and (G) as subparagraphs (G) and (H), respectively; and
(2) by inserting after subparagraph (E) the following new
subparagraph:
‘‘(F) the extent to which the applicant has ensured that
a service coordinator will be employed or otherwise retained

VerDate Nov 24 2008

01:33 Jan 27, 2011

Jkt 099139

PO 00372

Frm 00001

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL372.111

GPO1

PsN: PUBL372

124 STAT. 4078

PUBLIC LAW 111–372—JAN. 4, 2011
for the housing, who has the managerial capacity and responsibility for carrying out the actions described in subparagraphs
(A) and (B) of subsection (g)(2);’’.

SEC. 102. DEVELOPMENT COST LIMITATIONS.

Section 202(h)(1) of the Housing Act of 1959 (12 U.S.C.
1701q(h)(1)) is amended, in the matter preceding subparagraph
(A), by inserting ‘‘reasonable’’ before ‘‘development cost limitations’’.
SEC. 103. OWNER DEPOSITS.

Section 202(j)(3)(A) of the Housing Act of 1959 (12 U.S.C.
1701q(j)(3)(A)) is amended by inserting after the period at the
end the following: ‘‘Such amount shall be used only to cover operating deficits during the first 3 years of operations and shall not
be used to cover construction shortfalls or inadequate initial project
rental assistance amounts.’’.

anorris on DSK5R6SHH1PROD with PUBLIC LAWS

SEC. 104. DEFINITION OF PRIVATE NONPROFIT ORGANIZATION.

Section 202(k)(4) of the Housing Act of 1959 (12 U.S.C.
1701q(k)(4)) is amended to read as follows:
‘‘(4) The term ‘private nonprofit organization’ means—
‘‘(A) any incorporated private institution or foundation—
‘‘(i) no part of the net earnings of which inures
to the benefit of any member, founder, contributor,
or individual;
‘‘(ii) 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, except
that, in the case of a nonprofit organization that
is the sponsoring organization of multiple housing
projects assisted under this section, the Secretary
may determine the criteria or conditions under
which financial, compliance and other administrative responsibilities exercised by a single-entity
private nonprofit organization that is the owner
corporation responsible for the operation of an individual housing project may be shared or transferred to the governing board of such sponsoring
organization; and
‘‘(iii) which is approved by the Secretary as to
financial responsibility; and
‘‘(B) a for-profit limited partnership the sole general
partner of which is—
‘‘(i) an organization meeting the requirements
under subparagraph (A);
‘‘(ii) a for-profit corporation wholly owned and controlled by one or more organizations meeting the
requirements under subparagraph (A); or
‘‘(iii) a limited liability company wholly owned and
controlled by one or more organizations meeting the
requirements under subparagraph (A).’’.

VerDate Nov 24 2008

01:33 Jan 27, 2011

Jkt 099139

PO 00372

Frm 00002

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL372.111

GPO1

PsN: PUBL372

PUBLIC LAW 111–372—JAN. 4, 2011

124 STAT. 4079

SEC. 105. NONMETROPOLITAN ALLOCATION.

Paragraph (3) of section 202(l) of the Housing Act of 1959
(12 U.S.C. 1701q(l)(3)) is amended by inserting after the period
at the end the following: ‘‘In complying with this paragraph, the
Secretary shall either operate a national competition for the nonmetropolitan funds or make allocations to regional offices of the
Department of Housing and Urban Development.’’.

TITLE II—REFINANCING

anorris on DSK5R6SHH1PROD with PUBLIC LAWS

SEC. 201. APPROVAL OF PREPAYMENT OF DEBT.

Subsection (a) of section 811 of the American Homeownership
and Economic Opportunity Act of 2000 (12 U.S.C. 1701q note)
is amended—
(1) in the matter preceding paragraph (1), by inserting
‘‘, for which the Secretary’s consent to prepayment is required,’’
after ‘‘Affordable Housing Act)’’;
(2) in paragraph (1)—
(A) by inserting ‘‘at least 20 years following’’ before
‘‘the maturity date’’;
(B) by inserting ‘‘project-based’’ before ‘‘rental assistance payments contract’’;
(C) by inserting ‘‘project-based’’ before ‘‘rental housing
assistance programs’’; and
(D) by inserting ‘‘, or any successor project-based rental
assistance program,’’ after ‘‘1701s))’’;
(3) by amending paragraph (2) to read as follows:
‘‘(2) the prepayment may involve refinancing of the loan
if such refinancing results in—
‘‘(A) a lower interest rate on the principal of the loan
for the project and in reductions in debt service related
to such loan; or
‘‘(B) a transaction in which the project owner will
address the physical needs of the project, but only if, as
a result of the refinancing—
‘‘(i) the rent charges for unassisted families
residing in the project do not increase or such families
are provided rental assistance under a senior preservation rental assistance contract for the project pursuant
to subsection (e); and
‘‘(ii) the overall cost for providing rental assistance
under section 8 for the project (if any) is not increased,
except, upon approval by the Secretary to—
‘‘(I) mark-up-to-market contracts pursuant to
section 524(a)(3) of the Multifamily Assisted
Housing Reform and Affordability Act (42 U.S.C.
1437f note), as such section is carried out by the
Secretary for properties owned by nonprofit
organizations; or
‘‘(II) mark-up-to-budget contracts pursuant to
section 524(a)(4) of the Multifamily Assisted
Housing Reform and Affordability Act (42 U.S.C.
1437f note), as such section is carried out by the
Secretary for properties owned by eligible owners
(as such term is defined in section 202(k) of the

VerDate Nov 24 2008

01:33 Jan 27, 2011

Jkt 099139

PO 00372

Frm 00003

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL372.111

GPO1

PsN: PUBL372

124 STAT. 4080

PUBLIC LAW 111–372—JAN. 4, 2011
Housing Act of 1959 (12 U.S.C. 1701q(k)); and’’;
and
(4) by adding at the end the following:
‘‘(3) notwithstanding paragraph (2)(A), the prepayment and
refinancing authorized pursuant to paragraph (2)(B) involves
an increase in debt service only in the case of a refinancing
of a project assisted with a loan under such section 202 carrying
an interest rate of 6 percent or lower.’’.

anorris on DSK5R6SHH1PROD with PUBLIC LAWS

SEC. 202. USE OF UNEXPENDED AMOUNTS.

Subsection (c) of section 811 of the American Homeownership
and Economic Opportunity Act of 2000 (12 U.S.C. 1701q note)
is amended—
(1) by striking ‘‘USE OF UNEXPENDED AMOUNTS.—’’ and
inserting ‘‘USE OF PROCEEDS.—’’;
(2) by amending the matter preceding paragraph (1) to
read as follows: ‘‘Upon execution of the refinancing for a project
pursuant to this section, the Secretary shall ensure that proceeds are used in a manner advantageous to tenants of the
project, or are used in the provision of affordable rental housing
and related social services for elderly persons that are tenants
of the project or are tenants of other HUD-assisted senior
housing by the private nonprofit organization project owner,
private nonprofit organization project sponsor, or private nonprofit organization project developer, including—’’;
(3) by amending paragraph (1) to read as follows:
‘‘(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, except that upon the request of the non-profit owner,
sponsor, or organization and determination of the Secretary,
such 15 percent limitation may be waived to ensure that the
use of unexpended amounts better enables seniors to age in
place;’’;
(4) in paragraph (2), by inserting before the semicolon
the following; ‘‘, including reducing the number of units by
reconfiguring units that are functionally obsolete, unmarketable, or not economically viable’’;
(5) in paragraph (3), by striking ‘‘or’’ at the end;
(6) in paragraph (4), by striking ‘‘according to a pro rata
allocation of shared savings resulting from the refinancing.’’
and inserting a semicolon; and
(7) by adding at the end the following new paragraphs:
‘‘(5) rehabilitation of the project to ensure long-term
viability; and
‘‘(6) the payment to the project owner, sponsor, or third
party developer of a developer’s fee in an amount not to exceed
or duplicate—
‘‘(A) in the case of a project refinanced through a
State low income housing tax credit program, the fee permitted by the low income housing tax credit program as
calculated by the State program as a percentage of acceptable development cost as defined by that State program;
or
‘‘(B) in the case of a project refinanced through any
other source of refinancing, 15 percent of the acceptable
development cost.

VerDate Nov 24 2008

01:33 Jan 27, 2011

Jkt 099139

PO 00372

Frm 00004

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL372.111

GPO1

PsN: PUBL372

PUBLIC LAW 111–372—JAN. 4, 2011

124 STAT. 4081

For purposes of paragraph (6)(B), the term ‘acceptable development
cost’ shall include, as applicable, the cost of acquisition, rehabilitation, loan prepayment, initial reserve deposits, and transaction
costs.’’.
SEC. 203. USE OF PROJECT RESIDUAL RECEIPTS.

Paragraph (1) of section 811(d) of the American Homeownership
and Economic Opportunity Act of 2000 (12 U.S.C. 1701q note)
is amended—
(1) by striking ‘‘not more than 15 percent of’’; and
(2) by inserting before the period at the end the following:
‘‘or other purposes approved by the Secretary’’.

anorris on DSK5R6SHH1PROD with PUBLIC LAWS

SEC. 204. ADDITIONAL PROVISIONS.

Section 811 of the American Homeownership and Economic
Opportunity Act of 2000 (12 U.S.C. 1701q note) is amended by
adding at the end the following new subsections:
‘‘(e) SENIOR PRESERVATION RENTAL ASSISTANCE CONTRACTS.—
Notwithstanding any other provision of law, in connection with
a prepayment plan for a project approved under subsection (a)
by the Secretary or as otherwise approved by the Secretary to
prevent displacement of elderly residents of the project in the
case of refinancing or recapitalization and to further preservation
and affordability of such project, the Secretary shall provide projectbased rental assistance for the project under a senior preservation
rental assistance contract, as follows:
‘‘(1) Assistance under the contract shall be made available
to the private nonprofit organization owner—
‘‘(A) for a term of at least 20 years, subject to annual
appropriations; and
‘‘(B) under the same rules governing project-based
rental assistance made available under section 8 of the
Housing Act of 1937 or under the rules of such assistance
as may be made available for the project.
‘‘(2) Any projects for which a senior preservation rental
assistance contract is provided shall be subject to a use agreement to ensure continued project affordability having a term
of the longer of (A) the term of the senior preservation rental
assistance contract, or (B) such term as is required by the
new financing.
‘‘(f) SUBORDINATION OR ASSUMPTION OF EXISTING DEBT.—In
lieu of prepayment under this section of the indebtedness with
respect to a project, the Secretary may approve—
‘‘(1) in connection with new financing for the project, the
subordination of the loan for the project under section 202
of the Housing Act of 1959 (as in effect before the enactment
of the Cranston-Gonzalez National Affordable Housing Act) and
the continued subordination of any other existing subordinate
debt previously approved by the Secretary to facilitate preservation of the project as affordable housing; or
‘‘(2) the assumption (which may include the subordination
described in paragraph (1)) of the loan for the project under
such section 202 in connection with the transfer of the project
with such a loan to a private nonprofit organization.
‘‘(g) FLEXIBLE SUBSIDY DEBT.—The Secretary shall waive the
requirement that debt for a project pursuant to the flexible subsidy
program under section 201 of the Housing and Community Development Amendments of 1978 (12 U.S.C. 1715z–1a) be prepaid in

VerDate Nov 24 2008

01:33 Jan 27, 2011

Jkt 099139

PO 00372

Frm 00005

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL372.111

Waiver authority.

GPO1

PsN: PUBL372

124 STAT. 4082

PUBLIC LAW 111–372—JAN. 4, 2011

connection with a prepayment, refinancing, or transfer under this
section of a project if the financial transaction or refinancing cannot
be completed without the waiver.
‘‘(h) TENANT INVOLVEMENT IN PREPAYMENT AND REFINANCING.—
The Secretary shall not accept an offer to prepay the loan for
any project under section 202 of the Housing Act of 1959 unless
the Secretary—
‘‘(1) has determined that the owner of the project has
notified the tenants of the owner’s request for approval of
a prepayment; and
‘‘(2) has determined that the owner of the project has
provided the tenants with an opportunity to comment on the
owner’s request for approval of a prepayment, including on
the description of any anticipated rehabilitation or other use
of the proceeds from the transaction, and its impacts on project
rents, tenant contributions, or the affordability restrictions for
the project, and that the owner has responded to such comments
in writing.
‘‘(i) DEFINITION OF PRIVATE NONPROFIT ORGANIZATION.—For
purposes of this section, the term ‘private nonprofit organization’
has the meaning given such term in section 202(k) of the Housing
Act of 1959 (12 U.S.C. 1701q(k)).’’.

TITLE III—ASSISTED LIVING FACILITIES
AND SERVICE-ENRICHED HOUSING

anorris on DSK5R6SHH1PROD with PUBLIC LAWS

SEC. 301. AMENDMENTS TO THE GRANTS FOR CONVERSION OF
ELDERLY HOUSING TO ASSISTED LIVING FACILITIES.

(a) TECHNICAL AMENDMENT.—The section heading for section
202b of the Housing Act of 1959 (12 U.S.C. 1701q–2) is amended
by inserting ‘‘AND OTHER PURPOSES’’ after ‘‘ASSISTED LIVING
FACILITIES’’.
(b) EXTENSION OF GRANT AUTHORITY.—Section 202b(a)(2) of
the Housing Act of 1959 (12 U.S.C. 1701q–2(a)(2)) is amended—
(1) by striking ‘‘(2) CONVERSION.—Activities’’ and inserting
the following:
‘‘(2) CONVERSION.—
‘‘(A) ASSISTED LIVING FACILITIES.—Activities’’; and
(2) by adding at the end the following:
‘‘(B) SERVICE-ENRICHED HOUSING.—Activities designed
to convert dwelling units in the eligible project to serviceenriched housing for elderly persons.’’.
(c) AMENDMENT TO APPLICATION PROCESS.—Section 202b(c)(1)
of the Housing Act of 1959 (12 U.S.C. 1701q–2(c)(1)) is amended
by inserting ‘‘for either an assisted living facility or service-enriched
housing’’ after ‘‘activities’’.
(d) REQUIREMENTS FOR SERVICES.—Section 202b(d) of the
Housing Act of 1959 (12 U.S.C. 1701q–2(d)) is amended to read
as follows:
‘‘(d) REQUIREMENTS FOR SERVICES.—
‘‘(1) SUFFICIENT EVIDENCE OF FIRM FUNDING COMMITMENTS.—The Secretary may not make a grant under this section for conversion activities unless an application for a grant
submitted pursuant to subsection (c) contains sufficient evidence, in the determination of the Secretary, of firm commitments for the funding of services to be provided in the assisted

VerDate Nov 24 2008

01:33 Jan 27, 2011

Jkt 099139

PO 00372

Frm 00006

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL372.111

GPO1

PsN: PUBL372

anorris on DSK5R6SHH1PROD with PUBLIC LAWS

PUBLIC LAW 111–372—JAN. 4, 2011

124 STAT. 4083

living facility or service-enriched housing, which may be provided by third parties.
‘‘(2) REQUIRED EVIDENCE.—The Secretary shall require evidence that each recipient of a grant for service-enriched housing
under this section provides relevant and timely disclosure of
information to residents or potential residents of such housing
relating to—
‘‘(A) the services that will be available at the property
to each resident, including—
‘‘(i) the right to accept, decline, or choose such
services and to have the choice of provider;
‘‘(ii) the services made available by or contracted
through the grantee;
‘‘(iii) the identity of, and relevant information for,
all agencies or organizations providing any services
to residents, which agencies or organizations shall provide information regarding all procedures and requirements to obtain services, any charges or rates for the
services, and the rights and responsibilities of the residents related to those services;
‘‘(B) the availability, identity, contact information, and
role of the service coordinator; and
‘‘(C) such other information as the Secretary determines to be appropriate to ensure that residents are adequately informed of the services options available to promote resident independence and quality of life.’’.
(e) AMENDMENTS TO SELECTION CRITERIA.—Section 202b(e) of
the Housing Act of 1959 (12 U.S.C. 1701q–2(e)) is amended—
(1) in paragraph (2)—
(A) by inserting ‘‘or service-enriched housing’’ after
‘‘facilities’’; and
(B) by inserting ‘‘service-enriched housing’’ after
‘‘facility’’;
(2) in paragraph (5), by inserting ‘‘or service-enriched
housing’’ after ‘‘facility’’; and
(3) in paragraph (6), by inserting ‘‘or service-enriched
housing’’ after ‘‘facility’’.
(f) AMENDMENTS TO SECTION 8 PROJECT-BASED ASSISTANCE.—
Section 202b(f) of the Housing Act of 1959 (12 U.S.C. 1701q–
2(f)) is amended—
(1) in paragraph (1), by inserting ‘‘or service-enriched
housing’’ after ‘‘facilities’’ each time that term appears; and
(2) in paragraph (2), by inserting ‘‘or service-enriched
housing’’ after ‘‘facility’’.
(g) AMENDMENTS TO DEFINITIONS.—Section 202b(g) of the
Housing Act of 1959 (12 U.S.C. 1701q–2(g)) is amended to read
as follows:
‘‘(g) DEFINITIONS.—For purposes of this section—
‘‘(1) the term ‘assisted living facility’ has the meaning given
such term in section 232(b) of the National Housing Act
(1715w(b));
‘‘(2) the term ‘service-enriched housing’ means housing
that—
‘‘(A) makes available through licensed or certified third
party service providers supportive services to assist the
residents in carrying out activities of daily living, such
as bathing, dressing, eating, getting in and out of bed

VerDate Nov 24 2008

01:33 Jan 27, 2011

Jkt 099139

PO 00372

Frm 00007

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL372.111

GPO1

PsN: PUBL372

124 STAT. 4084

PUBLIC LAW 111–372—JAN. 4, 2011
or chairs, walking, going outdoors, using the toilet, laundry,
home management, preparing meals, shopping for personal
items, obtaining and taking medication, managing money,
using the telephone, or performing light or heavy housework, and which may make available to residents home
health care services, such as nursing and therapy;
‘‘(B) includes the position of service coordinator, which
may be funded as an operating expense of the property;
‘‘(C) provides separate dwelling units for residents,
each of which contains a full kitchen and bathroom and
which includes common rooms and other facilities appropriate for the provision of supportive services to the residents of the housing; and
‘‘(D) provides residents with control over health care
and supportive services decisions, including the right to
accept, decline, or choose such services, and to have the
choice of provider; and
‘‘(3) the definitions in section 1701(q)(k) of this title shall
apply.’’.

Applicability.

SEC. 302. MONTHLY ASSISTANCE PAYMENT UNDER RENTAL ASSISTANCE.

Clause (iii) of section 8(o)(18)(B) of the United States Housing
Act of 1937 (42 U.S.C. 1437f(o)(18)(B)(iii)) is amended by inserting
before the period at the end the following: ‘‘, except that a family
may be required at the time the family initially receives such
assistance to pay rent in an amount exceeding 40 percent of the
monthly adjusted income of the family by such an amount or
percentage that is reasonable given the services and amenities
provided and as the Secretary deems appropriate.’’.

TITLE IV—COMPLIANCE WITH STATUTORY PAY-AS-YOU-GO ACT OF 2010
SEC. 401. BUDGETARY EFFECTS.

anorris on DSK5R6SHH1PROD with PUBLIC LAWS

The budgetary effects of this Act, for the purpose of complying
with the Statutory Pay-As-You-Go-Act of 2010, shall be determined
by reference to the latest statement titled ‘‘Budgetary Effects of
PAYGO Legislation’’ for this Act, submitted for printing in the

VerDate Nov 24 2008

01:33 Jan 27, 2011

Jkt 099139

PO 00372

Frm 00008

Fmt 6580

Sfmt 6581

E:\PUBLAW\PUBL372.111

GPO1

PsN: PUBL372

PUBLIC LAW 111–372—JAN. 4, 2011

124 STAT. 4085

Congressional Record by the Chairman of the Senate Budget Committee, provided that such statement has been submitted prior
to the vote on passage.

anorris on DSK5R6SHH1PROD with PUBLIC LAWS

Approved January 4, 2011.

LEGISLATIVE HISTORY—S. 118:
CONGRESSIONAL RECORD, Vol. 156 (2010):
Dec. 18, considered and passed Senate.
Dec. 21, considered and passed House.

Æ

VerDate Nov 24 2008

01:33 Jan 27, 2011

Jkt 099139

PO 00372

Frm 00009

Fmt 6580

Sfmt 6580

E:\PUBLAW\PUBL372.111

GPO1

PsN: PUBL372