12 USC 1701q - Supportive housing for the elderly

U.S Code last checked for updates: Oct 16, 2024

§ 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

(c)

Forms of assistance

(1)

Capital advances

(2)

Project rental assistance

(3)

Tenant rent contribution

(d)

Term of commitment

(1)

Use limitations

(2)

Contract terms

(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);

(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)

Initial selection criteria and processing

(1)

Selection criteria

The Secretary shall establish selection criteria for assistance under this section, which shall include—

(A)

the ability of the applicant to develop and operate the proposed housing;

(B)

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;

(C)

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;

(D)

the extent to which the proposed design of the housing will meet the special physical needs of elderly persons;

(E)

the extent to which the applicant has demonstrated that the supportive services identified in subsection (e)(4) will be provided on a consistent, long-term basis;

(F)

the extent to which the applicant has ensured that a service coordinator will be employed or otherwise retained 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);

(G)

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

(H)

such other factors as the Secretary determines to be appropriate to ensure that funds made available under this section are used effectively.

(2)

Delegated processing

(A)

The Secretary shall establish procedures to delegate the award, review and processing of projects, selected by the Secretary in a national competition, to a State or local housing agency that—

(i)

is in geographic proximity to the property;

(ii)

has demonstrated experience in and capacity for underwriting multifamily housing loans that provide housing and supportive services;

(iii)

may or may not be providing low-income housing tax credits in combination with the funding under this section; and

(iv)

agrees to issue a firm commitment within 12 months of delegation.

(B)

The Secretary shall retain the authority to process funding under this section in cases in which no State or local housing agency has applied to provide delegated processing pursuant to this paragraph or no such agency has entered into an agreement with the Secretary to serve as a delegated processing agency.

(C)

The Secretary shall develop a schedule for reasonable fees under this subparagraph to be paid to delegated processing agencies, which shall take into consideration any other fees to be paid to the agency for other funding provided to the project by the agency, including bonds, tax credits, and other gap funding.

(D)

Assistance under subsection (c)(2) may be provided for projects which identify in the application for assistance a defined health and other supportive services program including sources of financing the services for eligible residents and memoranda of understanding with service provision agencies and organizations to provide such services for eligible residents at their request. Such supportive services plan and memoranda of understating shall—

(i)

identify the target populations to be served by the project;

(ii)

set forth methods for outreach and referral;

(iii)

identify the health and other supportive services to be provided; and

(iv)

identify the terms under which such services will be made available to residents of the project.

(E)

Under such delegated system, the Secretary shall retain the authority to approve rents and development costs and to execute funding under this section within 60 days of receipt of the commitment from the State or local agency. The Secretary shall provide to such agency and the project sponsor, in writing, the reasons for any reduction in funding under this section and such reductions shall be subject to appeal.

(g)

Provisions of services

(1)

In general

(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).

(3)

Service coordinators

(h)

Development cost limitations

(1)

In general

The Secretary shall periodically establish reasonable 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

(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

(5)

Design flexibility

(6)

Use of funds from other sources

(i)

Tenant selection

(1)

In general

(2)

Information regarding housing under this section

(j)

Miscellaneous provisions

(1)

Technical assistance

(2)

Civil rights compliance

(3)

Owner deposit

(A)

In general

(B)

Reduction of requirement

(4)

Notice of appeal

(5)

Labor

(A)

In general

(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

(7)

Compliance with Housing and Community Development Act of 1992

(8)

Use of project reserves

(9)

Carbon monoxide alarms

Each owner of a dwelling unit assisted under this section shall ensure that carbon monoxide alarms or detectors are installed in the dwelling unit in a manner that meets or exceeds—

(A)

the standards described in chapters 9 and 11 of the 2018 publication of the International Fire Code, as published by the International Code Council; or

(B)

any other standards as may be adopted by the Secretary, including any relevant updates to the International Fire Code, through a notice published in the Federal Register.

(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—

(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).

(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

(2)

Project rental assistance

(3)

Nonmetropolitan allocation

(m)

Authorization of appropriations

(m)

 So in original. Probably should be “(n)”.

Authorization of appropriations

(Pub. L. 86–372, title II, § 202, Sept. 23, 1959, 73 Stat. 667; Pub. L. 87–70, title II, § 201, June 30, 1961, 75 Stat. 162; Pub. L. 87–723, § 3, Sept. 28, 1962, 76 Stat. 670; Pub. L. 88–158, Oct. 24, 1963, 77 Stat. 278; Pub. L. 88–560, title II, §§ 201, 203(a)(2), Sept. 2, 1964, 78 Stat. 783; Pub. L. 89–117, title I, § 105(a), (b)(1), formerly § 105, Aug. 10, 1965, 79 Stat. 457, renumbered Pub. L. 89–754, title X, § 1001(1), (2), Nov. 3, 1966, 80 Stat. 1284;

cite as: 12 USC 1701q