# National and Community Service Act of 1990/Title II
## TITLE II — MODIFICATIONS OF EXISTING PROGRAMS
### Subtitle A — Publication
#### Sec. 201. Information for Students.

    Section 485(a)(1) of the Higher Education Act of 1965 (20 U.S.C. 1092(a)(1)) is amended—
          (1) by striking out ``and´´ at the end of subparagraph (J);
          (2) by striking out the period at the end of subparagraph (K) and inserting in lieu thereof a semicolon and the word ``and´´; and
          (3) by adding at the end thereof the following new subparagraph:
                ``(L) the terms and conditions under which students receiving guaranteed student loans under part B of this title or direct student loans under part E of this title, or both, may—
                      ``(i) obtain deferral of the repayment of the principal and interest for service under the Peace Corps Act (as established by the Peace Corps Act (22 U.S.C. 2501 et seq.)) or under the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4951 et seq.), or for comparable full-time service as a volunteer for a tax-exempt organization of demonstrated effectiveness in the field of community service, and
                      ``(ii) obtain partial cancellation of the student loan for service under the Peace Corps Act (as established by the Peace Corps Act (22 U.S.C. 2501 et seq.)) under the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4951 et seq.) or, for comparable full-time service as a volunteer for a tax-exempt organization of demonstrated effectiveness in the field of community service.´´.

#### Sec. 202. Exit Conseling for Borrowers.

    Section 485(b) of the Higher Education Act of 1965 (20 U.S.C. 1092(b)) is amended—
          (1) by striking ``and´´ at the end of paragraph (1);
          (2) by striking the period at the end of paragraph (2) and inserting in lieu thereof a semicolon and ``and´´; and
          (3) by inserting after paragraph (2) the following new paragraph:
             ``(3) the terms and conditions under which the student may obtain partial cancellation or defer repayment of the principal and interest for service under the Peace Corps Act (as established by the Peace Corps Act (22 U.S.C. 2501 et seq.)) or under the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4951 et seq.) or for comparable full-time service as a volunteer for a tax-exempt organization of demonstrated effectiveness.´´.

#### Sec. 203. Department Information on Deferments and Cancellations.

    Section 485(d) of the Higher Education Act of 1965 (20 U.S.C. 1092(d)) is amended by inserting before the last sentence the following new sentence: ``The Secretary shall provide information concerning the specific terms and conditions under which students may obtain partial or total cancellation or defer repayment of loans for service, shall indicate (in terms of the Federal minimum wage) the maximum level of compensation and allowances that a student borrower may receive from a tax-exempt organization to qualify for a deferment, and shall explicitly state that students may qualify for such partial cancellations or deferments when they serve as a paid employee of a tax-exempt organization´´.

#### Sec. 204. Data on Deferments and Cancellations.

    Section 485B(a) of the Higher Education Act of 1965 (20 U.S.C. 1092b(a)) is amended—
          (1) by striking ``and´´ at the end of paragraph (3);
          (2) by striking the period at the end of paragraph (4) and inserting in lieu thereof a semicolon and ``and´´; and
          (3) by adding the following new paragraph after paragraph (4):
             ``(5) the exact amount of loans partially or totally canceled or in deferment for service under the Peace Corps Act (22 U.S.C. 2501 et seq.)), for service under the Domestic Volunteer Service Act of 1973 (42 U.S.C. 4951 et seq.), and for comparable full-time service as a volunteer for a tax-exempt organization of demonstrated effectiveness.´´.

### Subtitle B — YouthBuild Projects
#### Sec. 211. YouthBuild Projects.

    The Domestic Volunteer Service Act of 1973 (42 U.S.C. 4951 et seq.) is amended by adding at the end thereof the following new title:
``TITLE VII—YOUTHBUILD PROJECTS
``SEC. 701. STATEMENT OF PURPOSE.
    ``It is the purpose of this title—
          ``(1) to provide economically disadvantaged young adults with opportunities for meaningful service to their communities in helping to meet the housing needs of homeless individuals and low-income families; and
          ``(2) to enable economically disadvantaged young adults to obtain the education and employment skills necessary to achieve economic self-sufficiency.
``SEC. 702. AUTHORIZATION OF PROGRAM.
    ``(a) FINANCIAL ASSISTANCE.— The Director of the ACTION Agency, in consultation with the Secretary of Labor, may provide grants to pay the Federal share of the cost of carrying out Youthbuild projects in accordance with this title.
    ``(b) FEDERAL SHARE.— The Federal share under subsection (a) for each fiscal year shall not exceed 90 percent.
``SEC. 703. SERVICE IN CONSTRUCTION AND REHABILITATION PROJECTS.
    ``(a) CONSTRUCTION AND REHABILITATION PROJECTS.— Eligible participants serving in Youthbuild projects receiving assistance under this title shall be employed in the construction, rehabilitation, or improvement of real property to be used for purposes of providing—
          ``(1) residential rental housing that is occupied primarily by, or available for occupancy primarily by, homeless individuals and low-income families;
          ``(2) transitional housing for homeless individuals;
          ``(3) facilities for the provision of health, education, and other social services to low-income families, including—
                ``(A) senior citizen centers;
                ``(B) youth recreation centers;
                ``(C) Head Start or child or adult day care centers; and
                ``(D) community health centers.
    ``(b) REQUIREMENTS FOR COMMUNITY FACILITIES.— No assistance may be provided under this title to support the construction, rehabilitation, or improvement of real property to be used to provide facilities described in subsection (a) unless the property—
          ``(1) is used principally by or for the benefit of low-income families;
          ``(2) is owned and occupied solely by public or private nonprofit entities; and
          ``(3) is located in census tracts, or identifiable neighborhoods within census tracts, in which the median family income is not more than 80 percent of the median family income of the area in which the facility is located, as such median family income and area are determined for the purposes of assistance under section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f).
    ``(c) RESTRICTION OF USE.— Participants under this title may not be employed in the construction, operation, or maintenance of any facility used for sectarian instruction or religious worship.
``SEC. 704. EDUCATION AND JOB TRAINING SERVICES.
    ``(a) IN GENERAL.— Assistance provided under this title shall be used by each Youthbuild project to provide to participants the following:
          ``(1) SERVICE OPPORTUNITIES.— Service opportunities in the construction or rehabilitation projects described in section 703, which shall be integrated with appropriate skills training and coordinated with, to the extent feasible, preapprenticeship and apprenticeship programs.
          ``(2) EDUCATIONAL SERVICES.— Services and activities designed to meet the educational needs of participants, including—
                ``(A) basic skills instruction and remedial education;
                ``(B) bilingual education for individuals with limited English proficiency; and
                ``(C) secondary education services and activities designed to lead to the attainment of a high school diploma or its equivalent.
          ``(3) PERSONAL AND PEER SUPPORTS.— Counseling services and other activities designed to—
                ``(A) ensure that participants overcome personal problems that would interfere with their successful participation; and
                ``(B) develop a strong, mutually supportive peer context in which values, goals, cultural heritage, and life skills can be explored and strengthened.
          ``(4) LEADERSHIP DEVELOPMENT.— Opportunities to develop the decisionmaking, speaking, negotiating, and other leadership skills of participants, such as the establishment and operation of a youth council with meaningful decisionmaking authority over aspects of the project.
          ``(5) PREPARATION FOR AND PLACEMENT IN UNSUBSIDIZED EMPLOYMENT.— Activities designed to maximize the value of participants as future employees and to prepare participants for seeking, obtaining, and retaining unsubsidized employment.
          ``(6) NECESSARY SUPPORT SERVICES.— To provide support services and need-based stipends necessary to enable individuals to participate in the program and, for a period not to exceed 6 months after completion of training, to assist participants through support services in retaining employment.
    ``(b) CONDITIONS.— The provision of service opportunities to participants in Youthbuild projects shall be made conditional upon attendance and participation by such individuals in the educational services and activities described in subsection (a). The duration of participation for each individual in educational services and activities shall be at least equal to the total number of hours for which a participant serves and is paid wages by a Youthbuild project.
``SEC. 705. USES OF FUNDS.
    ``(a) FUNDS.— Funds provided under this title may be used only for activities that are in addition to activities that would otherwise be available in the absence of such funds.
    ``(b) ASSISTANCE CRITERIA.— Assistance provided to each Youthbuild project under this title shall be used only for—
          ``(1) education and job training services and activities described in paragraphs (2), (3), (4), (5), and (6) of section 704(a);
          ``(2) wages and benefits paid to participants in accordance with sections 704(a) and 706; and
          ``(3) administrative expenses incurred by the project in an amount not to exceed 10 percent of the amount of assistance provided to the project under this title unless such project receives a waiver, on the basis of substantial need, granted by the Director to use an amount not to exceed 15 percent of the amount of such assistance provided under this title for such purposes.
``SEC. 706. ELIGIBLE PARTICIPANTS.
    ``(a) IN GENERAL.— Except as provided in subsection (b), an individual shall be eligible to participate in a Youthbuild project receiving assistance under this title if such individual is—
          ``(1) 16 to 24 years of age, inclusive;
          ``(2) economically disadvantaged; and
          ``(3) an individual who has dropped out of high school whose reading and mathematics skills are at or below the 8th grade level.
    ``(b) EXCEPTIONS.— Not more than 25 percent of the participants in a Youthbuild project receiving assistance under this title may be individuals who do not meet the requirements of subsection (a).
    ``(c) PARTICIPATION LIMITATION.— Any eligible individual selected for full-time participation in a Youthbuild project may participate full-time for a period of not less than 6 months and not more than 18 months.
``SEC. 707. LIVING ALLOWANCES.
    ``(a) AMOUNT OF ALLOWANCE.—
          ``(1) IN GENERAL.— Each participant in a full-time Youthbuild program that receives assistance under this title shall receive a living allowance of not more than an amount equal to 100 percent of the poverty line for a family of two (as defined in section 673(2) of the Community Service Block Grant Act (42 U.S.C. 9902(2)).
          ``(2) NON-FEDERAL SOURCES.— Notwithstanding paragraph (1), a program agency may provide participants with additional amounts that are made available from non-Federal sources.
          ``(3) REDUCTION IN EXISTING PROGRAM BENEFITS.— Nothing in this section shall be construed to require a program in existence on the date of enactment of this title to decrease any stipends, salaries, or living allowances provided to participants under such program so long as the amount of any such stipend, salaries, or living allowances that is in excess of the levels provided for in this section are paid from non-Federal sources.
    ``(b) NONDISCRIMINATION.—
          ``(1) IN GENERAL.— Except as provided in paragraph (2), an individual with responsibility for the operation of a Youthbuild project shall not discriminate on the basis of religion against a participant or a member of the project staff who is paid with funds under this title.
          ``(2) EXCEPTION.— Paragraph (1) shall not apply to the employment, with funds provided under this title, of any member of the staff of a Youthbuild project who was employed with the organization operating the project on the date the grant funded under this title was awarded.
``SEC. 708. CONTRACTS.
    ``Each Youthbuild project shall carry out the services and activities under this title directly or through arrangements or under contracts with administrative entities designated under section 103(b)(1)(B) of the Job Training Partnership Act (29 U.S.C. 1501(b)(1)(B)), with State and local educational agencies, institutions of higher education, State and local housing development agencies, and with other public agencies and private organizations.
``SEC. 709. PERFORMANCE STANDARDS.
    ``(a) IN GENERAL.— The Director, in consultation with the Secretary of Labor, shall prescribe standards for evaluating the performance of Youthbuild projects receiving assistance under this title, including the following factors:
          ``(1) Placement in unsubsidized employment.
          ``(2) Retention in unsubsidized employment.
          ``(3) An increase in earnings.
          ``(4) Improvement of reading and other basic skills.
          ``(5) Attainment of a high school diploma or its equivalent.
          ``(6) Completion of projects providing a benefit to the community.
    ``(b) VARIATIONS.— The Director shall prescribe variations to the standards determined under subsection (a) by taking into account the economic conditions of the areas in which Youthbuild projects are located and appropriate special characteristics, such as the extent of English language proficiency and offender status of Youthbuild participants.
``SEC. 710. APPLICATIONS.
    ``(a) SUBMISSION.— To apply for a grant under this title, an eligible entity shall submit an application to the Director in accordance with procedures established by the Director.
    ``(b) CRITERIA.— Each such application shall—
          ``(1) describe the educational services, job training, supportive services, service opportunities, and other services and activities that will be provided to participants;
          ``(2) describe the proposed construction of rehabilitation activities to be undertaken and the anticipated schedule for carrying out such activities;
          ``(3) describe the manner in which eligible youths will be recruited and selected, including a description of arrangements which will be made with community-based organizations, State and local educational agencies, public assistance agencies, the courts of jurisdiction for status and youth offenders, homeless shelters and other agencies that serve homeless youth, foster care agencies, and other appropriate public and private agencies;
          ``(4) describe the special outreach efforts that will be undertaken to recruit eligible young women (including young women with dependent children);
          ``(5) describe how the proposed project will be coordinated with other Federal, State, and local activities, including vocational, adult and bilingual education programs, job training supported by funds available under the Job Training Partnership Act (29 U.S.C. 1501 et seq.) and the Family Support Act of 1988, housing and economic development, and programs that receive assistance under section 106 of the Housing and Community Development Act of 1974 (42 U.S.C. 5306);
          ``(6) provide assurances that there will be a sufficient number of supervisory personnel on the project and that the supervisory personnel are trained in the skills needed to carry out the project;
          ``(7) describe activities that will be undertaken to develop the leadership skills of participants;
          ``(8) set forth a detailed budget and describe the system of fiscal controls and auditing and accountability procedures that will be used to ensure fiscal soundness; and
          ``(9) set forth assurances, arrangements, and conditions the Director determines are necessary to carry out this title.
``SEC. 711. SELECTION OF PROJECTS.
    ``In approving applications for assistance under this title, the Director shall give priority to applicants that demonstrate the following:
          ``(1) POTENTIAL FOR SUCCESS.— The greatest likelihood of success, as indicated by such factors as the past experience of an applicant with housing rehabilitation or construction, youth and youth education and employment training programs, management capacity, fiscal reliability, and community support.
          ``(2) NEED.— Have the greatest need for assistance, as determined by factors such as—
                ``(A) the degree of economic distress of the community from which participants would be recruited, including—
                      ``(i) the extent of poverty;
                      ``(ii) the extent of youth unemployment; and
                      ``(iii) the number of individuals who have dropped out of high school; and
                ``(B) the degree of economic distress of the locality in which the housing would be rehabilitated or constructed, including—
                      ``(i) objective measures of the incidence of homelessness;
                      ``(ii) the relation between the supply of affordable housing for low-income families and the number of such families in the locality;
                      ``(iii) the extent of housing overcrowding; and
                      ``(iv) the extent of poverty.
``SEC. 712. MANAGEMENT AND TECHNICAL ASSISTANCE.
    ``(a) GENERAL ADMINISTRATION.— The program established under this title shall be administered by an individual with significant experience in the administration of youth service programs that explicitly attempt to enhance the basic academic and vocational skills of participants in such programs. The Director is authorized to delegate any of the functions of the Director under this title as may be appropriate to the Secretary of Labor and provide for the performance of any of the provisions of this title on a cost-reimbursable basis by the Secretary of Labor.
    ``(b) DIRECTOR ASSISTANCE.— The Director may enter into contracts with a qualified public or private nonprofit agency to provide assistance to the Director in the management, supervision, and coordination of Youthbuild projects receiving assistance under this title.
    ``(c) SPONSOR ASSISTANCE.— The Director shall enter into contracts with a qualified public or private nonprofit agency to provide appropriate training, information, and technical assistance to sponsors of projects assisted under this title.
    ``(d) APPLICATION PREPARATION.— Technical assistance may also be provided in the development of project proposals and the preparation of applications for assistance under this title to eligible entities which intend or desire to submit such applications. Community-based organizations shall be given first priority in the provision of such assistance.
    ``(e) RESERVATION OF FUNDS.— The Director shall reserve 5 percent of the amounts available in each fiscal year under section 715 to carry out subsections (c) and (d).
``SEC. 713. DEFINITIONS.
    ``For purposes of this title:
          ``(1) COMMUNITY-BASED ORGANIZATIONS.— The term ``community-based organizations´´ has the meaning given such term in section 4(8) of the Job Training Partnership Act (29 U.S.C. 1503(8)).
          ``(2) DIRECTOR.— The term ``Director´´ means the Director of the ACTION agency.
          ``(3) DROPPED OUT OF HIGH SCHOOL.— The term ``individual who has dropped out of high school´´ means an individual who is neither attending any school nor subject to a compulsory attendance law and who has not received a secondary school diploma or a certificate of equivalency for such diploma, but does not include any individual who has attended secondary school at any time during the preceding 6 months.
          ``(4) ECONOMICALLY DISADVANTAGED.— The term ``economically disadvantaged´´ has the meaning given such term in section 4(8) of the Job Training Partnership Act (29 U.S.C. 1503(8)).
          ``(5) ELIGIBLE ENTITY.— The term ``eligible entity´´ means a public or private nonprofit agency, such as—
                ``(A) community-based organizations;
                ``(B) administrative entities designated under section 103(b)(1)(B) of the Job Training Partnership Act (29 U.S.C. 1501(b)(1)(B));
                ``(C) community action agencies;
                ``(D) State and local housing development agencies;
                ``(E) State and local youth service and conservation corps; and
                ``(F) any other entity that is eligible to provide education and employment training under other Federal employment training programs.
          ``(6) HOMELESS INDIVIDUAL.— The term ``homeless individual´´ has the meaning given such term in section 103 of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11302).
          ``(7) HOUSING DEVELOPMENT AGENCY.— The term ``housing development agency´´ means any agency of a State or local government, or any private nonprofit organization that is engaged in providing housing for the homeless or low-income families.
          ``(8) INSTITUTION OF HIGHER EDUCATION.— The term ``institution of higher education´´ has the meaning given such term in section 1201(a) of the Higher Education Act of 1965 (20 U.S.C. 1141(a)).
          ``(9) LIMITED ENGLISH PROFICIENCY.— The term ``limited English proficiency´´ has the meaning given such term in section 7003 of the Bilingual Education Act (20 U.S.C. 3223).
          ``(10) LOW-INCOME FAMILY.— The term ``low-income family´´ has the meaning given the term ``lower income families´´ in section 3(b)(2) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)(2)).
          ``(11) OFFENDER.— The term ``offender´´ means any adult or juvenile with a record of arrest or conviction for a criminal offense.
          ``(12) QUALIFIED NONPROFIT AGENCY.— The term ``qualified public or private nonprofit agency´´ means any nonprofit agency that has significant prior experience in the operation of projects similar to the Youthbuild program authorized under this title and that has the capacity to provide effective technical assistance under this title.
          ``(13) RESIDENTIAL RENTAL PURPOSES.— The term ``residential rental purposes´´ includes a cooperative or mutual housing facility that has a resale structure that enables the cooperative to maintain affordability for low-income individuals and families.
          ``(14) SERVICE OPPORTUNITY.— The term ``service opportunity´´ means the opportunity to perform work in return for wages and benefits in the construction or rehabilitation of real property in accordance with this title.
          ``(15) STATE.— The term ``State´´ means any of the several States, the District of Columbia, the Commonwealth of Puerto Rico, the Commonwealth of the Northern Mariana Islands, the Virgin Islands, Guam, American Samoa, or any other territory or possession of the United States.
          ``(16) TRANSITIONAL HOUSING.— The term ``transitional housing´´ means a project that has as its purpose facilitating the movement of homeless individuals and families to independent living within a reasonable amount of time. Transitional housing includes housing primarily designed to serve deinstitutionalized homeless individuals and other homeless individuals with mental or physical disabilities and homeless families with children.
          ``(17) YOUTHBUILD PROJECT.— The term ``Youthbuild project´´ means any project that receives assistance under this title and provides disadvantaged youth with opportunities for service, education, and training in the construction or rehabilitation of housing for homeless and other low-income individuals.
``SEC. 715. REGULATIONS.
    ``The Secretary shall issue any regulations necessary to carry out this title.
``SEC. 716. AUTHORIZATION OF APPROPRIATIONS.
    ``There are authorized to be appropriated to carry out this title $1,000,000 for fiscal year 1991, $2,000,000 for fiscal year 1992, and $5,000,000 for fiscal year 1993.´´..

### Subtitle C — Amendments to Student Literacy Corps
#### Sec. 221. Amendments to Student Literacy Corps.

    (a) INCREASE IN HOURS OF SERVICE.—
       Section 144(b)(2)(B) of the Higher Education Act of 1965 (20 U.S.C. 1018 note) is amended by striking ``6´´ and inserting in lieu thereof ``60´´ and by striking ``each week of´´ and inserting in lieu thereof ``during´´.
    (b) PRIORITY.—
       Section 144(b)(2)(D) of such Act is amended by inserting before the semicolon the following: ``and, as provided in section 146, will give priority in providing tutoring services to—
             ``(i) educationally disadvantaged students receiving services under chapter 1 of title I of the Elementary and Secondary Education Act of 1965; and
             ``(ii) illiterate parents of educationally or economically disadvantaged elementary school students, with special emphasis on single-parent households.´´.
    (c) AUTHORIZATION OF APPROPRIATIONS.—
       Section 146 of such Act is amended—
          (1) by inserting ``(a)´´ before ``IN GENERAL´´; and
          (2) by adding at the end thereof the following new subsection:
             ``(b) The priorities described in section 144(b)(2)(D) shall be applied by the Secretary to funds appropriated which exceed $10,000,000.´´.