§ 1701q-2. — Grants for conversion of elderly housing to assisted living facilities.
[Laws in effect as of January 24, 2002]
[Document not affected by Public Laws enacted between
January 24, 2002 and December 19, 2002]
[CITE: 12USC1701q-2]
TITLE 12--BANKS AND BANKING
CHAPTER 13--NATIONAL HOUSING
Sec. 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.
(Pub. L. 86-372, title II, Sec. 202b, as added and amended Pub. L. 106-
74, title V, Secs. 522, 523(b), Oct. 20, 1999, 113 Stat. 1103, 1105.)
Codification
Section was enacted as part of the Housing Act of 1959, and not as
part of the National Housing Act which comprises this chapter.
Amendments
1999--Subsecs. (f) to (h). Pub. L. 106-74 added subsec. (f) and
redesignated former subsecs. (f) and (g) as (g) and (h), respectively.
