124 STAT. 4091 PUBLIC LAW 111–374—JAN. 4, 2011 (B) by striking ‘‘extend any expiring contract’’ and insert ‘‘upon expiration of a contract (or any renewed con- tract), renew such contract’’. (b) PROGRAM REQUIREMENTS.—Section 811 is amended— (1) in subsection (e)— (A) by striking the subsection heading and inserting the following: ‘‘PROGRAM REQUIREMENTS’’; (B) by striking paragraph (1) and inserting the fol- lowing new paragraph: ‘‘(1) USE RESTRICTIONS.— ‘‘(A) TERM.—Any project for which a capital advance is provided under subsection (d)(1) shall be operated for not less than 40 years as supportive housing for persons with disabilities, in accordance with the application for the project approved by the Secretary and shall, during such period, be made available for occupancy only by very low-income persons with disabilities. ‘‘(B) CONVERSION.—If the owner of a project requests the use of the project for the direct benefit of very low- income persons with disabilities and, pursuant to such request the Secretary determines that a project is no longer needed for use as supportive housing for persons with disabilities, the Secretary may approve the request and authorize the owner to convert the project to such use.’’; and (C) by adding at the end the following new paragraphs: ‘‘(3) LIMITATION ON USE OF FUNDS.—No assistance received under this section (or any State or local government funds used to supplement such assistance) may be used to replace other State or local funds previously used, or designated for use, to assist persons with disabilities. ‘‘(4) MULTIFAMILY PROJECTS.— ‘‘(A) LIMITATION.—Except as provided in subparagraph (B), of the total number of dwelling units in any multifamily housing project (including any condominium or cooperative housing project) containing any unit for which assistance is provided from a capital grant under subsection (d)(1) made after the date of the enactment of the Frank Melville Supportive Housing Investment Act of 2010, the aggregate number that are used for persons with disabilities, including supportive housing for persons with disabilities, or to which any occupancy preference for persons with disabilities applies, may not exceed 25 percent of such total. ‘‘(B) EXCEPTION.—Subparagraph (A) shall not apply in the case of any project that is a group home or inde- pendent living facility.’’; and (2) in subsection (l), by striking paragraph (4). (c) DELEGATED PROCESSING.—Subsection (g) of section 811 (42 U.S.C. 8013(g)) is amended— (1) by striking ‘‘SELECTION CRITERIA.—’’ and inserting ‘‘SELECTION CRITERIA AND PROCESSING.—(1) SELECTION CRI- TERIA.—’’; (2) by redesignating paragraphs (1), (2), (3), (4), (5), (6), and (7) as subparagraphs (A), (B), (C), (D), (E), (G), and (H), respectively; and (3) by adding at the end the following new paragraph:
