Frank Melville Supportive Housing Investment Act of 2008

Frank Melville Supportive Housing Investment Act of 2008 - Amends the Cranston-Gonzalez National Affordable Housing Act (the Act) to revise requirements for supportive housing for persons with disabilities. (Retains authority to provide such assistance to private nonprofit organizations to expand the supply of such housing.)

Repeals the authority of the Secretary of Housing and Urban Development to provide tenant-based rental assistance directly to eligible persons with disabilities.

Authorizes appropriations for such assistance under section 8 (rental voucher program) of the United States Housing Act of 1937 for persons with disabilities in FY2009.

Modifies project rental assistance contract requirements, including renewal of, and increases in, annual contract amounts.

Requires initial contracts with the sponsor of a project assisted with any low-income housing tax credit or with any tax-exempt housing bonds to have an initial term of up to 360 months and to provide funding for 60 months.

Revises the requirement that all units in housing assisted by capital advances and project rental assistance contracts be made available for occupancy by very low-income persons with disabilities for at least 40 years.

Requires the Secretary, within 30 days of issuing certain capital advances for multifamily projects (except group homes or independent living facilities), to delegate review and processing of such projects to a state or local housing agency meeting specified criteria.

Revises tenant selection procedures.

Requires a lease between a tenant and a housing owner to be for at least one year.

Revises the application of cost limitations developed by the Secretary to supportive housing. Authorizes the Secretary to waive such limitations.

Requires the Secretary to: (1) establish a minimum percentage of capital advances per fiscal year for multifamily projects; and (2) carry out a project rental assistance competitive demonstration program to expand the supply of supportive housing for non-elderly adults with disabilities and with extremely low-incomes or for extremely low-income households that include at least one disabled person.

Requires the Comptroller General to study and report to Congress on the program's adequacy and effectiveness in assisting households of persons with disabilities.