SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Housing for Persons With AIDS 
Modernization Act of 2014''.

SEC. 2. FORMULA AND TERMS FOR ALLOCATIONS TO PREVENT HOMELESSNESS FOR 
              INDIVIDUALS LIVING WITH HIV OR AIDS.

    (a) In General.--Subsection (c) of section 854 of the AIDS Housing 
Opportunity Act (42 U.S.C. 12903(c)) is amended by--
            (1) redesignating paragraph (3) as paragraph (5); and
            (2) striking paragraphs (1) and (2) and inserting the 
        following:
            ``(1) Allocation of resources.--
                    ``(A) Allocation formula.--The Secretary shall 
                allocate 90 percent of the amount approved in 
                appropriations Acts under section 863 among States and 
                metropolitan statistical areas as follows:
                            ``(i) 75 percent of such amounts among--
                                    ``(I) cities that are the most 
                                populous unit of general local 
                                government in a metropolitan 
                                statistical area with a population 
                                greater than 500,000, as determined on 
                                the basis of the most recent census, 
                                and with more than 2,000 individuals 
                                living with HIV or AIDS, using the data 
                                specified in subparagraph (B); and
                                    ``(II) States with more than 2,000 
                                individuals living with HIV or AIDS 
                                outside of metropolitan statistical 
                                areas.
                            ``(ii) 25 percent of such amounts among 
                        States and metropolitan statistical areas based 
                        on the method described in subparagraph (C).
                    ``(B) Source of data.--For purposes of allocating 
                amounts under this paragraph for any fiscal year, the 
                number of individuals living with HIV or AIDS shall be 
                the number of such individuals as confirmed by the 
                Director of the Centers for Disease Control and 
                Prevention, as of December 31 of the most recent 
                calendar year for which such data is available.
                    ``(C) Allocation under subparagraph (A)(ii).--For 
                purposes of allocating amounts under subparagraph 
                (A)(ii), the Secretary shall develop a method that 
                accounts for--
                            ``(i) differences in housing costs among 
                        States and metropolitan statistical areas based 
                        on the fair market rental established pursuant 
                        to section 8(c) of the United States Housing 
                        Act of 1937 (42 U.S.C. 1437f(c)) or another 
                        methodology established by the Secretary 
                        through regulation; and
                            ``(ii) differences in poverty rates among 
                        States and metropolitan statistical areas based 
                        on area poverty indexes or another methodology 
                        established by the Secretary through 
                        regulation.
            ``(2) Maintaining grants.--
                    ``(A) Continued eligibility of fiscal year 2014 
                grantees.--A grantee that received an allocation in 
                fiscal year 2014 shall continue to be eligible for 
                allocations under paragraph (1) in subsequent fiscal 
                years, subject to--
                            ``(i) the amounts available from 
                        appropriations Acts under section 863;
                            ``(ii) approval by the Secretary of the 
                        most recent comprehensive housing affordability 
                        strategy for the grantee approved under section 
                        105; and
                            ``(iii) the requirements of subparagraph 
                        (C).
                    ``(B) Adjustments.--Allocations to grantees 
                described in subparagraph (A) shall be adjusted 
                annually based on the administrative provisions 
                included in fiscal year 2014 appropriations Acts.
                    ``(C) Redetermination of continued eligibility.--
                The Secretary shall redetermine the continued 
                eligibility of a grantee that received an allocation in 
                fiscal year 2014 at least once during the 10-year 
                period following fiscal year 2014.
                    ``(D) Adjustment to grants.--For each of fiscal 
                years 2015, 2016, and 2017, the Secretary shall ensure 
                that a grantee that received an allocation in the prior 
                fiscal year does not receive an allocation that is 10 
                percent less than or 20 percent greater than the amount 
                allocated to such grantee in the preceding fiscal year.
            ``(3) Alternative grantees.--
                    ``(A) Requirements.--The Secretary may award funds 
                reserved for a grantee eligible under paragraph (1) to 
                an alternative grantee if--
                            ``(i) the grantee submits to the Secretary 
                        a written agreement between the grantee and the 
                        alternative grantee that describes how the 
                        alternative grantee will take actions 
                        consistent with the applicable comprehensive 
                        housing affordability strategy approved under 
                        section 105 of this Act;
                            ``(ii) the Secretary approves the written 
                        agreement described in clause (i) and agrees to 
                        award funds to the alternative grantee; and
                            ``(iii) the written agreement does not 
                        exceed a term of 10 years.
                    ``(B) Renewal.--An agreement approved pursuant to 
                subparagraph (A) may be renewed by the parties with the 
                approval of the Secretary.
                    ``(C) Definition.--In this paragraph, the term 
                `alternative grantee' means a public housing agency (as 
                defined in section 3(b) of the United States Housing 
                Act of 1937 (42 U.S.C. 1437a(b))), a unified funding 
                agency (as defined in section 401 of the McKinney-Vento 
                Homeless Assistance Act (42 U.S.C. 11360)), a State, a 
                unit of general local government, or an instrumentality 
                of State or local government.
            ``(4) Reallocations.--If a State or metropolitan 
        statistical area declines an allocation under paragraph (1)(A), 
        or the Secretary determines, in accordance with criteria 
        specified in regulation, that a State or metropolitan 
        statistical area that is eligible for an allocation under 
        paragraph (1)(A) is unable to properly administer such 
        allocation, the Secretary shall reallocate any funds reserved 
        for such State or metropolitan statistical area as follows:
                    ``(A) For funds reserved for a State--
                            ``(i) to eligible metropolitan statistical 
                        areas within the State on a pro rata basis; or
                            ``(ii) if there is no eligible metropolitan 
                        statistical areas within a State, to 
                        metropolitan cities and urban counties within 
                        the State that are eligible for grant under 
                        section 106 of the Housing and Community 
                        Development Act of 1974 (42 U.S.C. 5306), on a 
                        pro rata basis.
                    ``(B) For funds reserved for a metropolitan 
                statistical area, to the State in which the 
                metropolitan statistical area is located.
                    ``(C) If the Secretary is unable to make a 
                reallocation under subparagraph (A) or (B), the 
                Secretary shall make such funds available on a pro rata 
                basis under the formula in paragraph (1)(A).''.
    (b) Amendment to Definitions.--Section 853 of such Act is amended--
            (1) in paragraph (1), by inserting ``or `AIDS''' before 
        ``means''; and
            (2) by inserting at the end the following new paragraphs:
            ``(15) The term `HIV' means infection with the human 
        immunodeficiency virus.
            ``(16) The term `individuals living with HIV or AIDS' 
        means, with respect to the counting of cases in a geographic 
        area during a period of time, the sum of--
                    ``(A) the number of living non-AIDS cases of HIV in 
                the area; and
                    ``(B) the number of living cases of AIDS in the 
                area.''.
Housing for Persons With AIDS Modernization Act of 2014 - Amends the AIDS Housing Opportunity Act to revise the formula and terms for allocations of grants to states, local governments, and nonprofit organizations for housing programs for persons with acquired immune deficiency syndrome (AIDS) (as under current law), as well as those with human immunodeficiency virus (HIV).
Housing for Persons With AIDS Modernization Act of 2014