USE OF UNEXPENDED AMOUNTS.

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.124 STAT. 4081For 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.”.