Elderly Housing Quality Improvement Act

Elderly Housing Quality Improvement Act - Amends the Housing Act of 1959 to authorize the Secretary of Housing and Urban Development to make grants to eligible housing owners for elderly housing capital repair and conversion to assisted living facilities. Authorizes appropriations.

(Sec. 3) Authorizes, and sets forth the conditions under which, the Secretary shall approve sponsor prepayment and refinancing of principal and interest for elderly or handicapped project loans under the Housing Act of 1959.

Amends the National Housing Act to permit multifamily project rehabilitation loans to be made from recaptured interest reduction contracts. Revises capital grant project eligibility.

(Sec. 4) Authorizes appropriations, with respect to specified elderly and disabled housing, for: (1) service coordinator grants under the National Housing Act; (2) congregate services contacts under the Cranston-Gonzalez National Affordable Housing Act.; (3) additional renewals and contracts not renewed in FY 1998 (directs the Secretary to use specified FY 1999 appropriations to renew all FY 1998 grants for service coordinators and congregate services); and (4) service coordinator and congregate services grants under the United States Housing Act of 1937.

Amends the Housing and Community Development Act of 1992 to permit service coordinator services to be provided to low-income or elderly persons living in the vicinity of specified federally assisted housing.

(Sec. 5) Amends the United States Housing Act of 1937 to permit section 8 voucher and project-based assistance to be used for the rental costs of principal residence assisted living facilities.

(Sec. 6) Authorizes the Secretary to establish a demonstration program of incremental section 8 vouchers for assisted living facilities for low-income elderly families. Authorizes appropriations.

(Sec. 7) Amends the Housing Act of 1959 to: (1) authorize appropriations for new construction of elderly affordable housing; and (2) authorize additional appropriations to encourage leveraging of funds from other sources or development of additional affordable moderate-income elderly housing.