I

103D CONGRESS

2D SESSION H. R. 4578

To amend the Stewart B. McKinney Homeless Assistance Act to revise

and extend programs providing urgently needed assistance for the homeless, and for other purposes.

IN THE HOUSE OF REPRESENTATIVES

JUNE 14, 1994

Mr. VENTO (for himself, Mrs. ROUKEMA, Mr. FRANK of Massachusetts, and

Mr. KENNEDY) introduced the following bill; which was referred jointly

to the Committees on Banking, Finance and Urban Affairs, Energy and

Commerce, and Ways and Means

A BILL

To amend the Stewart B. McKinney Homeless Assistance

Act to revise and extend programs providing urgently

needed assistance for the homeless, and for other

purposes.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Stewart B. McKinney Homeless Assistance Amendments

6 Act of 1994’’.
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1 (b) TABLE OF CONTENTS.—The table of contents for

2 this Act is as follows:

Sec. 1. Short title and table of contents.

TITLE I—GENERAL PROVISIONS

Sec. 101. Budget compliance.

TITLE II—INTERAGENCY COUNCIL ON THE HOMELESS

Sec. 201. Authorization of appropriations.

Sec. 202. Chairperson.

Sec. 203. Extension.

TITLE III—FEDERAL EMERGENCY MANAGEMENT AGENCY FOOD

AND SHELTER PROGRAM

Sec. 301. Authorization of appropriations.

TITLE IV—HOUSING ASSISTANCE

Subtitle A—Reorganization of Certain McKinney Act Housing Provisions

Sec. 401. Flexible grant program.

Sec. 402. Regulations.

Sec. 403. Transition provisions.

Subtitle B—Other Housing Assistance Programs for the Homeless Under

McKinney Act

Sec. 411. Section 8 assistance for single room occupancy dwellings.

Sec. 412. Section 8 assistance for shelter plus care single room occupancy

dwellings.

Sec. 413. Rural homelessness grant program.

Sec. 414. Strategy to eliminate unfit transient facilities.

Sec. 415. Clerical amendment.

Subtitle C—Miscellaneous Homeless Housing Provisions

Sec. 421. Innovative homeless program.

Sec. 422. FHA single family property disposition.

TITLE V—HEALTH CARE FOR THE HOMELESS

Subtitle A—Categorical Grants for Primary Health Services and Substance

Abuse Services

Sec. 501. Authorization of appropriations.

Sec. 502. Establishment of program for prevention and treatment of substance

abuse among homeless individuals.

Subtitle B—Formula Grants to States for Assistance in Transition from

Homelessness

Sec. 511. Requirement of allotment for States.

Sec. 512. Authorization of appropriations.
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Subtitle C—Categorical Grants Regarding Mental Illness and Substance

Abuse

Sec. 521. Treatment services from community-based providers.

TITLE VI—EDUCATION, TRAINING, AND COMMUNITY SERVICES

PROGRAMS

Sec. 601. Family support centers.

TITLE VII—HOMELESS PROGRAMS RELATING TO FEDERAL

WELFARE ASSISTANCE

Sec. 701. National homeless advocate demonstration grant program.

Sec. 702. Qualification of construction, rehabilitation, purchase, and rental of

permanent housing for homeless AFDC families as emergency

assistance under AFDC program.

1 TITLE I—GENERAL PROVISIONS

2 SEC. 101. BUDGET COMPLIANCE.

3 (a) IN GENERAL.—This Act and the amendments

4 made by this Act may not be construed to provide for new

5 budget authority, budget outlays, or new entitlement au6 thority, for fiscal year 1995, 1996, or 1997 in excess of

7 the appropriate aggregate levels established by the concur8 rent resolution on the budget for such years for the pro9 grams authorized by this Act and the amendments made

10 by this Act.

11 (b) DEFINITIONS.—For purposes of this section, the

12 terms ‘‘budget authority’’, ‘‘budget outlays’’, ‘‘concurrent

13 resolution on the budget’’, and ‘‘entitlement authority’’

14 have the meanings given such terms in section 3 of the

15 Congressional Budget Act of 1974.
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1 TITLE II—INTERAGENCY

2 COUNCIL ON THE HOMELESS

3 SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

4 Section 208 of the Stewart B. McKinney Homeless

5 Assistance Act (42 U.S.C. 11318) is amended to read as

6 follows:

7 ‘‘SEC. 208. AUTHORIZATION OF APPROPRIATIONS.

8 ‘‘There are authorized to be appropriated to carry out

9 this title $1,609,890 for fiscal year 1995, $1,658,187 for

10 fiscal year 1996, and such sums as may be necessary for

11 fiscal year 1997.’’.

12 SEC. 202. CHAIRPERSON.

13 Section 202(b) of the Stewart B. McKinney Homeless

14 Assistance Act (42 U.S.C. 11312(b) is amended to read

15 as follows:

16 ‘‘(b) CHAIRPERSON AND VICE CHAIRPERSON.—

17 ‘‘(1) CHAIRPERSON.—The Council shall elect an

18 Chairperson from among its members, who shall

19 have a term of 2 years. A member of the Council by

20 reason of any of paragraphs (1) through (16) of

21 subsection (a) who serves as Chairperson for a term

22 may not be elected to serve as Chairperson for the

23 succeeding term. The preceding sentence shall not

24 apply to any member serving as Chairperson on the
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1 date of the enactment of the Stewart B. McKinney

2 Homeless Assistance Amendments Act of 1994.

3 ‘‘(2) VICE CHAIRPERSON.—The Vice Chair4 person of the Council shall have a term of 2 years

5 and shall be—

6 ‘‘(A) the Secretary of Housing and Urban

7 Development, if such Secretary is not elected as

8 the Chairperson of the Council; or

9 ‘‘(B) elected by the Council from among its

10 members, if the Secretary of Housing and

11 Urban Development is elected as the Chair12 person of the Council.’’.

13 SEC. 203. EXTENSION.

14 Section 209 of the Stewart B. McKinney Homeless

15 Assistance Act (42 U.S.C. 11319) is amended by striking

16 ‘‘October 1, 1994’’ and inserting ‘‘October 1, 1997’’.

17 TITLE III—FEDERAL EMER18 GENCY MANAGEMENT AGEN19 CY FOOD AND SHELTER PRO20 GRAM

21 SEC. 301. AUTHORIZATION OF APPROPRIATIONS.

22 Section 322 of the Stewart B. McKinney Homeless

23 Assistance Act (42 U.S.C. 11352) is amended to read as

24 follows:
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1 ‘‘SEC. 322. AUTHORIZATION OF APPROPRIATIONS.

2 ‘‘There are authorized to be appropriated to carry out

3 this title $193,186,800 for fiscal year 1995, $198,982,404

4 for fiscal year 1996, and such sums as may be necessary

5 for fiscal year 1997.’’.

6 TITLE IV—HOUSING ASSISTANCE

7 Subtitle A—Reorganization of Cer8 tain McKinney Act Housing Pro9 visions

10 SEC. 401. FLEXIBLE GRANT PROGRAM.

11 Title IV of the Stewart B. McKinney Homeless As12 sistance Act (42 U.S.C. 11361 et seq.) is amended—

13 (1) by striking subtitles A, B, C, D, and F;

14 (2) by striking the headings for subtitles E and

15 G;

16 (3) by redesignating section 441, 491, and 592

17 (as added by section 1414 of the Housing and Com18 munity Development Act of 1992) as sections 451,

19 453, and 454, respectively;

20 (4) by striking sections 442 and 443; and

21 (5) by inserting after the heading for the title

22 the following:
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1 ‘‘Subtitle A—Flexible Grant

2 Program

3 ‘‘CHAPTER 1—GENERAL PROVISIONS

4 ‘‘SEC. 401. PURPOSES.

5 ‘‘The purposes of this subtitle are—

6 ‘‘(1) to expand and reorganize the Federal com7 mitment to alleviate homelessness by providing

8 States, Indian tribes, and localities with the re9 sources to more efficiently and effectively design a

10 comprehensive system to address the shelter, service,

11 and permanent housing needs of homeless individ12 uals and families in the United States;

13 ‘‘(2) to help very low-income families avoid be14 coming homeless;

15 ‘‘(3) to meet the emergency shelter needs of

16 homeless persons and families;

17 ‘‘(4) to provide transitional or specialized per18 manent housing to facilitate the movement of home19 less persons and families to independent living;

20 ‘‘(5) to provide supportive services to help

21 homeless persons and families lead independent and

22 dignified lives;

23 ‘‘(6) to encourage the cooperation and partici24 pation of the States and units of general local gov25 ernment, together with private nonprofit organiza-
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1 tions, in planning and implementing comprehensive

2 homeless assistance programs;

3 ‘‘(7) to reduce the costs to States, units of gen4 eral local government, and private nonprofit organi5 zations in applying for and using Federal housing

6 assistance for families and persons who are home7 less; and

8 ‘‘(8) to begin meeting the needs of most of the

9 Nation’s homeless population through the existing

10 Federal programs providing basic assistance for low11 income families and persons.

12 ‘‘SEC. 402. AUTHORIZATION OF APPROPRIATIONS.

13 ‘‘There are authorized to be appropriated—

14 ‘‘(1) $635,000,000 for fiscal year 1995 for

15 grants in accordance with section 403 of the Stewart

16 B. McKinney Homeless Assistance Amendments Act

17 of 1994; and

18 ‘‘(2) $786,620,000 for fiscal year 1996, and

19 such sums as may be necessary for fiscal year 1997,

20 for grants under this subtitle.

21 Any amounts appropriated pursuant to this section shall

22 remain available until expended.

23 ‘‘SEC. 403. DEFINITIONS.

24 ‘‘For purposes of this subtitle, the following defini25 tions shall apply:
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1 ‘‘(1) The term ‘allocation unit of general local

2 government’ means a metropolitan city and an

3 urban county.

4 ‘‘(2) The term ‘applicant’ means an eligible

5 grantee that submits an application under section

6 408 for a grant under this subtitle.

7 ‘‘(3) The term ‘disability’ means—

8 ‘‘(A) a disability as defined in section 223

9 of the Social Security Act;

10 ‘‘(B) to be determined to have, pursuant to

11 regulations issued by the Secretary, a physical,

12 mental, or emotional impairment which (i) is

13 expected to be a long-continued and indefinite

14 duration, (ii) substantially impedes an individ15 ual’s ability to live independently, and (iii) of

16 such a nature that such ability could be im17 proved by more suitable housing conditions;

18 ‘‘(C) a developmental disability as defined

19 in section 102 of the Developmental Disabilities

20 Assistance and Bill of Rights Act; or

21 ‘‘(D) the disease of acquired

22 immunodeficiency syndrome or any conditions

23 arising from the etiologic agency for acquired

24 immunodeficiency syndrome.
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1 Subparagraph (D) shall not be construed to limit eli2 gibility under subparagraphs (A) through (C) or the

3 provisions referred to in subparagraphs (A) through

4 (C).

5 ‘‘(4) The term ‘eligible grantee’ means—

6 ‘‘(A) an allocation unit of general local

7 government, Indian Tribe, or insular area that

8 elects to administer a grant under section

9 410(a)(1);

10 ‘‘(B) a public agency or a private nonprofit

11 organization (or a consortium of such organiza12 tions) designated by the Secretary under section

13 410(a)(3) to administer grant amounts for an

14 allocation unit of general local government, In15 dian tribe, or insular area;

16 ‘‘(C) an entity eligible to receive grant

17 amounts from the Secretary under section

18 410(a)(4);

19 ‘‘(D) a State that elects under section

20 410(b)(1)(A) to administer a grant;

21 ‘‘(E) a unit of general local government se22 lected under section 410(b)(5) to receive grant

23 amounts from the Secretary; and
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1 ‘‘(F) a private nonprofit organization se2 lected under section 410(b)(4) to receive grant

3 amounts from the Secretary.

4 ‘‘(5) The term ‘families’ has the same meaning

5 given the term under section 3(b) of the United

6 States Housing Act of 1937.

7 ‘‘(6) The term ‘grantee’ means—

8 ‘‘(A) an allocation unit of general local

9 government, Indian Tribe, or insular area that

10 receives a grant under this subtitle and admin11 isters the grant under section 410(a)(1);

12 ‘‘(B) an allocation unit of general local

13 government, Indian tribe, or insular area that

14 receives a grant under this subtitle and des15 ignates a public agency or private nonprofit or16 ganization (or a consortium of such organiza17 tions) to administer grant amounts for the ju18 risdiction under section 410(a)(2);

19 ‘‘(C) a public agency or a private nonprofit

20 organization (or a consortium or such organiza21 tions) designated by the Secretary under section

22 410(a)(3) to administer grant amounts for an

23 allocation unit of general local government, In24 dian tribe, or insular area, and that receives

25 grant amounts under this subtitle;
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1 ‘‘(D) an entity that receives grant amounts

2 from the Secretary under section 410(a)(4);

3 ‘‘(E) a State that receives grant amounts

4 under this subtitle and administers such

5 amounts under section 410(b)(1)(A);

6 ‘‘(F) a unit of general local government

7 that receives grant amounts from the Secretary

8 under section 410(b)(5); and

9 ‘‘(G) a private nonprofit organization that

10 receives grant amounts from the Secretary

11 under section 410(b)(4);

12 ‘‘(7) The term ‘homeless family’ means a group

13 of one or more related individuals who are homeless

14 individuals.

15 ‘‘(8) The term ‘Indian tribe’ means any Indian

16 tribe, band, group, and nation, including Alaska In17 dians, Aleuts, and Eskimos, and any Alaskan Native

18 Village, of the United States, which is considered an

19 eligible recipient under the Indian Self-Determina20 tion and Education Assistance Act or was considered

21 an eligible recipient under chapter 67 of title 31,

22 United States Code, before the repeal of such

23 chapter.
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1 ‘‘(9) The term ‘insular area’ means the Virgin

2 Islands, Guam, American Samoa, and the Common3 wealth of the Northern Mariana Islands.

4 ‘‘(10) The term ‘low-demand services and refer5 rals’ means the provision of health care, mental

6 health, substance abuse, and other supportive serv7 ices and referrals for services in a noncoercive man8 ner, which may include medication management,

9 education, counseling, job training, and assistance in

10 obtaining entitlement benefits and in obtaining other

11 supportive service including mental health treatment

12 and substance abuse treatment.

13 ‘‘(11) The term ‘metropolitan city’ has the

14 meaning given the term in section 102(a) of the

15 Housing and Community Development Act of 1974.

16 ‘‘(12) The term ‘operating costs’ means ex17 penses of operating any housing assisted under this

18 subtitle with respect to—

19 ‘‘(A) the administration, maintenance, re20 pair, and security of such housing;

21 ‘‘(B) utilities, fuels, furnishings, and equip22 ment for such housing; and

23 ‘‘(C) the conducting of the assessments of

24 and the provision of supportive services to the

25 residents of such housing.
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1 ‘‘(13) The term ‘outpatient health services’

2 means outpatient health care, outpatient mental

3 health services, outpatient substance abuse services,

4 case management services and child immunization.

5 ‘‘(14) The term ‘private nonprofit organization’

6 means an organization—

7 ‘‘(A) no part of the net earnings of which

8 inures to the benefit of any member, founder,

9 contributor, or individual;

10 ‘‘(B) that has a voluntary board;

11 ‘‘(C) that has an accounting system or has

12 designated a fiscal agent in accordance with re13 quirements established by the Secretary; and

14 ‘‘(D) that practices nondiscrimination in

15 the provision of assistance.

16 ‘‘(15) The term ‘project’ means a structure or

17 a portion of a structure that is acquired or rehabili18 tated with assistance provided under this subtitle or

19 with respect to which the Secretary provides tech20 nical assistance or annual payments for operation

21 costs.

22 ‘‘(16) The term ‘project sponsor’ means an en23 tity that—

24 ‘‘(A) provides housing or assistance for

25 homeless individuals or families by carrying out
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1 eligible activities under chapter 2 that are as2 sisted under this subtitle; and

3 ‘‘(B) meets such minimum standards as

4 the Secretary considers appropriate.

5 ‘‘(17) The term ‘recipient’ means a grantee

6 (other than a State distributing grant amounts to

7 State recipients) and a State recipient.

8 ‘‘(18) The term ‘Secretary’ means the Secretary

9 of Housing and Urban Development.

10 ‘‘(19) The term ‘State’ means a State of the

11 United States and the Commonwealth of Puerto

12 Rico, or any agency or instrumentality thereof that

13 is established pursuant to legislation and designated

14 by the chief executive to act on behalf of the juris15 diction with regard to provisions of this subtitle.

16 ‘‘(20) The term ‘State recipient’ means—

17 ‘‘(A) a unit of general local government

18 within a State (other than an allocation unit of

19 general local government) that receives grant

20 amounts from the State under section

21 410(b)(3); and

22 ‘‘(B) a private nonprofit organization that

23 receives grant amounts from a State under sec24 tion 410(b)(4).
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1 ‘‘(21)(A) The term ‘supportive services’ means

2 assistance that—

3 ‘‘(i) addresses the special needs of home4 less person, such as deinstitutionalized persons,

5 families with children, persons with mental dis6 abilities, other persons with disabilities, the el7 derly, and veterans intended to be served by a

8 project; and

9 ‘‘(ii) assists in accomplishing the purposes

10 of the different types of housing for the home11 less eligible for assistance under this subtitle.

12 ‘‘(B) Such term includes—

13 ‘‘(i) food services, child care, substance

14 abuse treatment, assistance in obtaining perma15 nent housing, outpatient health services, em16 ployment counseling, nutritional counseling, se17 curity arrangements for the protection of resi18 dents of facilities to assist the homeless, and

19 such other services essential for maintaining or

20 moving toward independent living as the Sec21 retary determines to be appropriate; and

22 ‘‘(ii) assistance to homeless persons in ob23 taining other Federal, State, and local assist24 ance available for such individuals, including

25 public assistance benefits, mental health bene-
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1 fits, employment counseling, and medical assist2 ance.

3 ‘‘(C) Such term does not include the provision

4 of major medical equipment.

5 ‘‘(D) All or part of the supportive services may

6 be provided directly by the project sponsor or by ar7 rangements with other public or private service pro8 viders.

9 ‘‘(22) The term ‘unit of general local govern10 ment’ means—

11 ‘‘(A) a city, town, township, county, parish,

12 village, or other general purpose political sub13 division of a State;

14 ‘‘(B) the District of Columbia; and

15 ‘‘(C) any agency or instrumentality thereof

16 that is established pursuant to legislation and

17 designated by the chief executive to act on be18 half of the jurisdiction with regard to provisions

19 of this subtitle.

20 The term includes a consortium of geographically

21 contiguous units of general local government if the

22 Secretary determines that the consortium—

23 ‘‘(i) has sufficient authority and adminis24 trative capability to carry out the purposes of
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1 this subtitle on behalf of its member jurisdic2 tions; and

3 ‘‘(ii) will, according to a written certifi4 cation by the State (or State, if the consortium

5 includes jurisdictions in more than one State),

6 direct its activities to alleviation of problems of

7 homeless individuals or families within the

8 State or States.

9 ‘‘(23) The term ‘urban county’ has the meaning

10 given the term in section 102(a) of the Housing and

11 Community Development Act of 1974.

12 ‘‘(24) The term ‘very low-income families’ has

13 the same meaning given the term under section 104

14 of the Cranston-Gonzalez National Affordable Hous15 ing Act.

16 ‘‘SEC. 404. PROVISION OF GRANTS.

17 ‘‘(a) AUTHORITY AND USE.—The Secretary may

18 make grants to eligible grantees in accordance with the

19 provisions of this subtitle. Grants under this subtitle may

20 be used only—

21 ‘‘(1) to carry out activities under chapter 2 for

22 assisting homeless individuals and families that are

23 conducted to provide comprehensive homeless assist24 ance required under section 405; and
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1 ‘‘(2) for administrative expenses, to the extent

2 provided in section 436.

3 ‘‘(b) GENERAL RULE FOR AWARD OF GRANTS.—Ex4 cept as provided in subsection (c), the Secretary shall

5 make grants using amounts appropriated under section

6 402 in the manner provided in this subtitle.

7 ‘‘(c) INSUFFICIENT APPROPRIATIONS.—

8 ‘‘(1) TRIGGER.—If the amounts appropriated

9 pursuant to section 402 for any fiscal year are less

10 than 50 percent of the amount authorized to be ap11 propriated under such section for the year, the Sec12 retary shall use such amounts to make grants under

13 the provisions of this title as in effect immediately

14 before the enactment of the Stewart B. McKinney

15 Homeless Assistance Amendments Act of 1994.

16 ‘‘(2) GRANT REQUIREMENTS.—The Secretary

17 shall establish requirements for grants made under

18 this subsection, as the Secretary considers appro19 priate, that are additional or alternative to the re20 quirements under the provisions of this title as in ef21 fect immediately before the enactment of the Stew22 art B. McKinney Homeless Assistance Amendments

23 Act of 1994.

24 ‘‘(3) GRANT CRITERIA.—The criteria for award25 ing grants under this subsection shall include—
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1 ‘‘(A) the extent to which there is a need

2 for assistance for homeless individuals and fam3 ilies in the jurisdiction in which the grant will

4 be used;

5 ‘‘(B) the extent to which the activities pro6 posed to be carried out with grant amounts will

7 further the provision of comprehensive homeless

8 assistance required under section 405(b)(1);

9 ‘‘(C) the extent to which private nonprofit

10 organizations providing assistance to homeless

11 individuals and families in the jurisdiction have

12 been, and will be, included in planning for the

13 receipt of assistance under this subtitle, the de14 velopment of the application under section 408,

15 and the execution of the proposed activities;

16 and

17 ‘‘(D) such other criteria as the Secretary

18 considers appropriate to further the purposes of

19 this subsection and this subtitle.

20 ‘‘(4) SET ASIDE FOR INDIAN TRIBES AND INSU21 LAR AREAS.—In making grants under this sub22 section, the Secretary may set aside such amounts

23 as the Secretary considers appropriate for grants for

24 Indian tribes and insular areas.
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1 ‘‘SEC. 405. COMPREHENSIVE HOMELESS ASSISTANCE.

2 ‘‘(a) ESTABLISHMENT AND MAINTENANCE.—Each

3 applicant shall, based on information provided in the cur4 rent comprehensive affordable housing strategy for the ap5 propriate jurisdiction under section 105 of the Cranston6 Gonzalez National Affordable Housing Act or such other

7 plan as the Secretary may prescribe, use assistance pro8 vided under this subtitle in a manner that ensures that

9 comprehensive homeless assistance is established and

10 maintained within the jurisdiction of the applicant.

11 ‘‘(b) REQUIREMENTS.—For purposes of this subtitle,

12 comprehensive homeless assistance required under this

13 section shall include—

14 ‘‘(1) providing a system of outreach and assess15 ment for—

16 ‘‘(A) determining whether an individual or

17 family is homeless, needs assistance to avoid

18 being homeless, or needs other assistance; and

19 ‘‘(B) ensuring that individuals and families

20 so identified receive appropriate housing and

21 supportive services;

22 ‘‘(2) providing assistance to the extent nec23 essary to avoid eviction (or foreclosure) and termi24 nation of utility services of low- and very low-income

25 families to prevent such families from becoming

26 homeless;
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1 ‘‘(3) making emergency shelters with appro2 priate supportive services available to the extent nec3 essary to ensure that homeless individuals and fami4 lies for which such housing is appropriate receive

5 adequate shelter, including during any period in

6 which an assessment referred to in paragraph (1) is

7 performed for such an individual or family;

8 ‘‘(4) making transitional housing with appro9 priate supportive services available to the extent nec10 essary to ensure that homeless individuals and fami11 lies for which such housing is appropriate are pre12 pared for increased responsibility and permanent

13 housing, or permanent supportive housing, after the

14 transition period;

15 ‘‘(5) making permanent supportive housing,

16 available to the extent necessary to meet the long17 term housing needs of all homeless individuals and

18 families; and

19 ‘‘(6) providing for coordination of assistance

20 provided under this subtitle and assistance provided

21 under other Federal, State, and local programs that

22 may be used to assist homeless individuals and fami23 lies, including—

24 ‘‘(A) assistance under the programs for

25 public and Indian housing and section 8 rental
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1 assistance under the United States Housing Act

2 of 1937 (including the program for section 8

3 assistance for moderate rehabilitation under

4 section 451 of this Act and the shelter plus care

5 program for such assistance under section 452

6 of this Act), the HOME Investment Partner7 ships Act, the community development block

8 grant program under title I of the Housing and

9 Community Development Act of 1974, the pro10 gram for supportive housing for the elderly

11 under section 202 of the Housing Act of 1959,

12 the program for supportive housing for persons

13 with disabilities under section 811 of the Cran14 ston-Gonzalez National Affordable Housing Act,

15 and the program for housing opportunities for

16 persons with AIDS under subtitle D of title

17 VIII of the Cranston-Gonzalez National Afford18 able Housing Act;

19 ‘‘(B) programs administered by the Direc20 tor of the Federal Emergency Management

21 Agency;

22 ‘‘(C) programs administered by the Sec23 retary of Labor, including programs for employ24 ment and training;
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1 ‘‘(D) programs administered by the Sec2 retary of Health and Human Services, including

3 programs for health care, mental health care,

4 social services, income support services, run5 away youth, and unfit transient facilities;

6 ‘‘(E) programs administered by the Sec7 retary of Veterans Affairs that are designed to

8 assist homeless veterans;

9 ‘‘(F) programs administered by the Sec10 retary of Education, including programs for

11 adult education and education for homeless

12 children and youth;

13 ‘‘(G) programs administered by the Cor14 poration for National and Community Service,

15 including programs for national service; and

16 ‘‘(H) such other assistance as the Sec17 retary shall prescribe upon consultation with

18 the Interagency Council on the Homeless.

19 ‘‘SEC. 406. MATCHING REQUIREMENTS.

20 ‘‘(a) IN GENERAL.—Except as provided in subsection

21 (c), each recipient shall supplement the amount of grants

22 provided under this subtitle to the recipient with an equal

23 amount of funds from non-Federal sources, which shall

24 include funds from project sponsors receiving assistance

25 from the recipient.
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1 ‘‘(b) SUPPLEMENTAL FUNDS.—Supplemental funds

2 may include (1) the value of any donated material or

3 building, the value of any lease on a building, (2) any sal4 ary paid to staff to carry out the program of a project

5 sponsor, (3) the value of the time and services contributed

6 by volunteers to carry out the program of project sponsor

7 at a rate determined by the Secretary, and (4) the pro8 ceeds from bond financing validly issued by a State or unit

9 of general local government, agency, or instrumentality

10 thereof, and repayable with revenues derived from a

11 project assisted under this subtitle, except that not more

12 than 25 percent of the contribution required may be de13 rived from the proceeds of such bond financings. Any

14 State or local government funds used independently from

15 the program under this title, or designated for such use,

16 to assist the homeless by carrying out activities that would

17 be eligible for assistance under this subtitle shall be con18 sidered supplemental funds under this section.

19 ‘‘(c) STATES.—

20 ‘‘(1) REQUIRED SUPPLEMENTATION.—Except

21 as provided in paragraph (3), in the case of a State

22 administering grant amounts under section

23 410(b)(1)(A), in each fiscal year, the State shall

24 supplement the amount of grants provided under

25 this subtitle with an amount of funds from sources
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1 other than this subtitle equal to the difference be2 tween the amount received under this subtitle and

3 $100,000.

4 ‘‘(2) BENEFIT OF MATCH.—Each grantee that

5 is a State shall obtain any supplemental amounts re6 quired under paragraph (1) from State recipients re7 ceiving amounts under the grant in a manner so

8 that the benefit of the $100,000 subtrahend under

9 paragraph (1) is appropriately divided among State

10 recipients for which providing such supplemental

11 amounts would—

12 ‘‘(A) create a significant hardship for the

13 recipient; or

14 ‘‘(B) interfere with the overall purpose of

15 the homeless assistance program of the recipi16 ent.

17 ‘‘(3) EXCEPTION.—If, in any fiscal year, a

18 State receives $100,000 or less in grant amounts

19 under this subtitle, paragraph (1) shall not apply to

20 the State for the fiscal year.

21 ‘‘(d) CERTIFICATION.—Each recipient shall certify,

22 to the satisfaction of the Secretary, its compliance with

23 the provisions of this section, which shall describe the

24 sources and amounts of supplemental funds provided pur25 suant to this section.
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1 ‘‘SEC. 407. RESPONSIBILITIES OF RECIPIENTS AND

2 PROJECT SPONSORS.

3 ‘‘(a) USE OF ASSISTANCE THROUGH PRIVATE NON4 PROFIT ORGANIZATIONS.—Each recipient shall make

5 available more than 50 percent of the grant amounts it

6 receives for any fiscal year to project sponsors that are

7 private nonprofit organizations to carry out eligible activi8 ties under chapter 2, except that the Secretary may waive

9 the applicability of this requirement if the recipient dem10 onstrates to the Secretary that the requirement interferes

11 with the ability of the recipient to provide assistance under

12 this subtitle because of a paucity of qualified private non13 profit organizations in the jurisdiction of the recipient.

14 ‘‘(b) HOUSING QUALITY.—Each recipient shall en15 sure that housing assisted with grant amounts provided

16 under this subtitle is decent, safe, and sanitary and, when

17 appropriate, complies with all applicable State and local

18 housing codes, building codes, and licensing requirements

19 in the jurisdiction in which the housing is located.

20 ‘‘(c) PREVENTION OF UNDUE BENEFIT.—The Sec21 retary may prescribe such terms and conditions as the

22 Secretary considers necessary to prevent project sponsors

23 from unduly benefiting from the sale or other disposition

24 of projects other than a sale or other disposition resulting

25 in the use of the project for the direct benefit of very low26 income families.
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1 ‘‘(d) CONFIDENTIALITY.—Each recipient shall de2 velop and implement procedures to ensure the confiden3 tiality of records pertaining to any individual provided

4 family violence prevention or treatment services under any

5 project and to ensure that the address or location of any

6 family violence shelter project assisted with grant amounts

7 under this subtitle will, except with written authorization

8 of the person or person responsible for the operation of

9 such shelter, not be made public.

10 ‘‘(e) EMPLOYMENT OF HOMELESS INDIVIDUALS.—

11 To the maximum extent practicable, the Secretary shall

12 ensure that recipients involve, through employment, volun13 teer services, or otherwise, homeless individuals and fami14 lies in constructing, renovating, maintaining, and operat15 ing facilities assisted with grant amounts under this sub16 title, in providing services so assisted, and in providing

17 services for occupants of facilities so assisted.

18 ‘‘(f) PARTICIPATION OF HOMELESS INDIVIDUALS.—

19 The Secretary shall, by regulation, provide that each recip20 ient shall require each project sponsor receiving assistance

21 under this subtitle from the recipient to provide for the

22 participation of not less than one homeless individual or

23 formerly homeless individual on the board of directors or

24 other equivalent policy making entity of the project spon25 sor, to the extent that such entity considers and makes
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1 policies and decisions regarding any project, facility, serv2 ices, or other activities assisted with grant amounts under

3 this subtitle. A recipient may grant waivers to project

4 sponsors unable to meet the requirement under the pre5 ceding sentence if the project sponsor agrees to otherwise

6 consult with homeless or formerly homeless individuals in

7 considering and making such policies and decisions.

8 ‘‘SEC. 408. APPLICATION.

9 ‘‘(a) REQUIREMENT.—Except as otherwise provided

10 in section 404(c), the Secretary may make a grant under

11 this subtitle only to an eligible grantee that submits an

12 application under this section that is approved by the

13 Secretary.

14 ‘‘(b) FORM AND PROCEDURE.—Applications shall be

15 submitted in such form and in accordance with such proce16 dures as the Secretary shall, by regulation, establish.

17 ‘‘(c) CONTENT.—An application under this section

18 shall—

19 ‘‘(1) include a detailed description, based on in20 formation provided in the current comprehensive

21 housing affordability strategy under section 105 of

22 the Cranston-Gonzalez National Affordable Housing

23 Act for the appropriate jurisdiction or such other

24 plan as the Secretary may prescribe, of—
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1 ‘‘(A) the existing population of homeless

2 individuals and families for the jurisdiction of

3 the applicant; and

4 ‘‘(B) the existing facilities and services de5 signed to assist such population;

6 ‘‘(2) include a detailed description of the com7 prehensive homeless assistance under section 405 to

8 be established and maintained within the jurisdiction

9 of the applicant;

10 ‘‘(3) provide an assessment of what is required

11 to establish and maintain the provision of com12 prehensive homeless assistance required under sec13 tion 405 for the jurisdiction of the applicant;

14 ‘‘(4) set forth a multiyear strategy for estab15 lishing and maintaining the provision of comprehen16 sive homeless assistance for the jurisdiction, as de17 scribed pursuant to paragraph (2), and include time18 tables, goals, and budget estimates for accomplishing

19 each element of the strategy;

20 ‘‘(5) set forth a 1-year action plan that identi21 fies all activities to be carried out with assistance

22 under this subtitle and demonstrates how such ac23 tivities will further the strategy set forth pursuant to

24 paragraph (4);
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1 ‘‘(6) except in the case of an application by a

2 State that elects under section 410(b)(1)(A) to ad3 minister grants under this subtitle, describe the

4 means the applicant will use to distribute grant

5 amounts to project sponsors and whether such

6 amounts will be awarded on a competitive or non7 competitive basis;

8 ‘‘(7) contain certifications or other such forms

9 of proof of commitments of financial and other re10 sources from each public agency or private nonprofit

11 organization that has a role in establishing and

12 maintaining the provision of comprehensive homeless

13 assistance for the jurisdiction of the applicant, re14 quired under section 405;

15 ‘‘(8) contain assurances satisfactory to the Sec16 retary that activities carried out under chapter 2

17 with grant amounts under this subtitle will comply

18 with the requirements of this subtitle;

19 ‘‘(9) in the case of an application by a State

20 that elects to under section 410(b)(1)(A) administer

21 grants under this subtitle, describe the method of

22 distribution of such amounts to State recipients;

23 ‘‘(10) except with respect to an application by

24 a State that elects to under section 410(b)(1)(A) to

25 administer grants under this subtitle, contain a cer-
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1 tification from the public official responsible for sub2 mitting the comprehensive housing affordability

3 strategy under section 105 of the Cranston-Gonzalez

4 National Affordable Housing Act for the State or

5 unit of general local government within which a

6 project is to be located (or such other plan as the

7 Secretary may require) that the proposed project is

8 consistent with the approved housing strategy of

9 such State or unit of general local government;

10 ‘‘(11) contain a certification that the applicant

11 will comply with the requirements of the Fair Hous12 ing Act, title VI of the Civil Rights Act of 1964, sec13 tion 504 of the Rehabilitation Act of 1973, and the

14 Age Discrimination Act of 1975, and will affirma15 tively further fair housing; and

16 ‘‘(12) contain a certification that the applicant

17 will comply with the requirements of this subtitle

18 and other applicable laws.

19 ‘‘(d) RELATIONSHIP TO CHAS AND CONSOLIDATED

20 PLAN.—In establishing requirements for applications

21 under this section, the Secretary shall provide that if an

22 applicant includes in the application information also re23 quired under the comprehensive housing affordability

24 strategy for the appropriate jurisdiction under section 105

25 of the Cranston-Gonzalez National Affordable Housing
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1 Act or such other plan as the Secretary may require, the

2 requirements under such subsection regarding such infor3 mation shall be considered to be fulfilled by the submission

4 of the application.

5 ‘‘SEC. 409. ALLOCATION AND DISTRIBUTION OF FUNDS.

6 ‘‘(a) INSULAR AREAS.—In each fiscal year, from any

7 amounts appropriated for such year to carry out this sub8 title, the Secretary shall allocate amounts to insular areas

9 in accordance with an allocation formula established by

10 the Secretary.

11 ‘‘(b) STATES AND ALLOCATION UNITS OF GENERAL

12 LOCAL GOVERNMENT.—

13 ‘‘(1) FORMULA ALLOCATION.—

14 ‘‘(A) IN GENERAL.—For each fiscal year,

15 of the amounts that remain after amounts are

16 reserved for insular areas under subsection (a),

17 the Secretary shall allocate assistance according

18 to this paragraph.

19 ‘‘(B) FORMULA.—The Secretary shall allo20 cate amounts under this paragraph using a for21 mula established by the Secretary that allocates

22 amounts for allocation units of general local

23 government and States, and for Indian tribes,

24 in a manner that provides that the percentage

25 of the total amount referred to in subparagraph
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1 (A) for any fiscal year that is allocated for any

2 State or allocation unit of general local govern3 ment, or for Indian tribes, is equal to the per4 centage of the total amount available for section

5 106 of the Housing and Community Develop6 ment Act of 1974 for the prior fiscal year that

7 was allocated for such State or allocation unit

8 of general local government, or for Indian

9 tribes.

10 ‘‘(C) MINIMUM AMOUNT.—If, in any fiscal

11 year, allocation under the provisions of subpara12 graphs (A) and (B) would result in any alloca13 tion unit of general local government receiving

14 a grant of less than 0.05 percent of the

15 amounts appropriated to carry out this subtitle

16 for the fiscal year, such amount shall instead be

17 reallocated to the State for use under section

18 410(b).

19 ‘‘(D) 70 PERCENT FOR UNITS OF GENERAL

20 LOCAL GOVERNMENT.—In each fiscal year, the

21 amount allocated under this paragraph for each

22 allocation unit of general local government shall

23 be the amount that results from increasing all

24 of the amounts determined pursuant to the pre25 ceding subparagraphs for allocation units of
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1 general local government on a pro rata basis so

2 that the sum of such amounts is equal to 70

3 percent of the remainder of the amount appro4 priated for the year to carry out this subtitle

5 after amounts are allocated for insular areas

6 under subsection (a).

7 ‘‘(E) 30 PERCENT FOR STATES.—In each

8 fiscal year, the amount allocated under this

9 paragraph for each State shall be the amount

10 that results from decreasing all of the amounts

11 determined pursuant to the preceding subpara12 graphs for States on a pro rata basis so that

13 the sum of such amounts is equal to 30 percent

14 of the remainder of the amount appropriated

15 for the year to carry out this subtitle after

16 amounts are allocated for insular areas under

17 subsection (a).

18 ‘‘(2) GRANT AMOUNT FOR STATES AND ALLO19 CATION UNITS OF GENERAL LOCAL GOVERNMENT.—

20 ‘‘(A) IN GENERAL.—The amount allocated

21 for a fiscal year under paragraph (1) for an al22 location unit of general local government or a

23 State shall be the maximum amount that the

24 allocation unit or State may receive under this

25 subtitle for the fiscal year.
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1 ‘‘(B) REDUCTION.—In any fiscal year, the

2 Secretary may provide a grant under this sub3 title for a State or for an allocation unit of gen4 eral local government in an amount less than

5 the amount allocated under paragraph (1), if

6 the Secretary determines based upon review of

7 the application of the jurisdiction under section

8 408 or as a result of the annual performance

9 review and audit under section 413, that the ju10 risdiction has failed to comply fully with the re11 quirements under section 408 or 411 or that

12 such action is otherwise appropriate.

13 ‘‘(c) REALLOCATIONS.—Any amounts that a State or

14 an allocation unit of general local government is eligible

15 to receive for a fiscal year under subsection (b) that are

16 not received for use in the jurisdiction, as provided by sub17 sections (a) and (b) of section 410, or that become avail18 able as a result of actions under section 413(b), shall be

19 added to amounts available for allocation under this sec20 tion for the succeeding fiscal year.

21 ‘‘SEC. 410. ADMINISTRATION OF PROGRAM.

22 ‘‘(a) GRANTS TO ALLOCATION UNITS OF GENERAL

23 LOCAL GOVERNMENT, INDIAN TRIBES, AND INSULAR

24 AREAS.—
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1 ‘‘(1) IN GENERAL.—Except as provided in para2 graphs (2), (3), and (4), an allocation unit of gen3 eral local government, Indian tribe, or insular area

4 shall administer grant amounts for any fiscal year

5 received under section 409 by such grantees.

6 ‘‘(2) ADMINISTRATION BY DESIGNEES OF JU7 RISDICTION.—

8 ‘‘(A) AUTHORITY TO ELECT.—An alloca9 tion unit of general local government, Indian

10 tribe, or insular area may elect for any fiscal

11 year to designate a public agency or a private

12 nonprofit organization (or a consortium of such

13 organizations) to administer grant amounts

14 under section 409 for the jurisdiction.

15 ‘‘(B) ELECTION REQUIREMENTS.—The

16 Secretary shall prescribe the manner and time

17 for making an election under subparagraph (A),

18 and shall establish criteria for the approval of

19 agencies and organizations designated, which

20 shall require such agencies and organizations to

21 demonstrate experience of the entity in provid22 ing assistance to homeless individuals and fami23 lies in the jurisdiction.

24 ‘‘(C) DIRECT PROVISION OF ASSIST25 ANCE.—The Secretary may, at the request of
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1 the jurisdiction, provide grant amounts directly

2 to the agency or organization designated under

3 this paragraph.

4 ‘‘(3) ADMINISTRATION BY DESIGNEES OF SEC5 RETARY.—If an allocation unit of general local gov6 ernment, Indian tribe, or insular area, or (if appro7 priate) a public agency or private nonprofit organi8 zation designated by the jurisdiction under para9 graph (2), does not receive a grant under section

10 409 for any fiscal year because of failure to meet the

11 application requirements of section 408, the Sec12 retary may designate an agency or organization

13 meeting the criteria established under paragraph

14 (2)(B) to receive the grant.

15 ‘‘(4) ADMINISTRATION BY SECRETARY.—If for

16 any fiscal year the Secretary determines that the

17 grant amounts allocated under section 409 for an al18 location unit of general local government, Indian

19 tribe, or insular area will not be used in the jurisdic20 tion as provided by the preceding provisions of this

21 subsection, the Secretary may administer such

22 amounts for the jurisdiction. The Secretary shall

23 prescribe such procedures and requirements as the

24 Secretary considers appropriate for administering

25 grant amounts under this paragraph.
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1 ‘‘(b) GRANTS TO STATES.—

2 ‘‘(1) IN GENERAL.—To receive an allocation

3 under section 409, each State shall elect—

4 ‘‘(A) to administer grant amounts received

5 under section 409, as provided in paragraphs

6 (2) and (3); or

7 ‘‘(B) to have the Secretary administer such

8 grant amounts for the State, as provided in

9 paragraph (5).

10 If a State elects to administer grant amounts under

11 subparagraph (A), the election shall be irrevocable.

12 ‘‘(2) STATE PROGRAM.—A State administering

13 grant amounts as provided in paragraph (1)(A)—

14 ‘‘(A) shall distribute the amounts remain15 ing after use in accordance with subparagraph

16 (B) to State recipients for use under this sub17 title;

18 ‘‘(B) may use up to 15 percent of the

19 grant amounts received under section 409 to

20 carry out its own homeless assistance program

21 under this subtitle, except that—

22 ‘‘(i) such amounts may only be used

23 for eligible activities under chapter 2 for

24 which States are eligible recipients under

25 this subtitle; and
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1 ‘‘(ii) the Secretary may increase the

2 percentage limitation under this subpara3 graph in the case of any State homeless

4 assistance program that is limited to pro5 viding assistance in areas of the State that

6 are not allocation units of general local

7 government; and

8 ‘‘(C) may retain not to exceed 5.0 percent

9 of the amount to be distributed under subpara10 graph (A) to State recipients to defray the cost

11 of carrying out its responsibilities under this

12 subtitle.

13 Unless a State demonstrates to the satisfaction of

14 the Secretary that the needs for assistance for ac15 tivities under this subtitle in areas of the State that

16 are not allocation units of general local government

17 have been fulfilled, grant amounts received by State

18 may only be used to carry out activities in areas of

19 the State that do not include allocation units of gen20 eral local government.

21 ‘‘(3) DISTRIBUTION OF AMOUNTS TO STATE RE22 CIPIENTS.—

23 ‘‘(A) CHOICE OF ADMINISTRATION.—A

24 State administering grant amounts as provided
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1 in paragraph (1)(A) shall, for each fiscal year,

2 afford each such recipient the options of—

3 ‘‘(i) administering the grant amounts

4 on its own behalf;

5 ‘‘(ii) designating a public agency or a

6 private nonprofit organization (as provided

7 by subsection (a)(2)) to administer the

8 grant amounts for the jurisdiction; or

9 ‘‘(iii) entering into an agreement with

10 the State, in consultation with private non11 profit organizations providing assistance to

12 homeless individuals and families in the ju13 risdiction, under which the State will ad14 minister the grant amounts for the juris15 diction.

16 A recipient may choose to exercise such options

17 at such time and in accordance with such cri18 teria as the Secretary may prescribe.

19 ‘‘(B) DIRECT PROVISION OF ASSIST20 ANCE.—A State may, at the request of the

21 State recipient, provide grant amounts directly

22 to the agency or organization designated under

23 subparagraph (A)(ii).

24 ‘‘(C) DISTRIBUTION OF AMOUNTS.—The

25 State shall distribute amounts to State recipi-
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1 ents (or to agencies or organizations designated

2 under subparagraph (A)(ii), as appropriate) on

3 the basis of an application containing such in4 formation as the State may prescribe. Each ap5 plication shall evidence an intent to establish

6 and maintain the provision of comprehensive

7 homeless assistance in the jurisdiction of the re8 cipient, except that the State may waive this re9 quirement with respect to one or more proposed

10 activities, where the State determines that—

11 ‘‘(i) the activities are necessary to

12 meet the needs of homeless individuals and

13 families within the jurisdiction; and

14 ‘‘(ii) comprehensive homeless assist15 ance is not necessary, due to the nature

16 and extent of homelessness in the jurisdic17 tion.

18 ‘‘(D) PREFERENCE FOR CERTAIN STATE

19 RECIPIENTS.—In selecting State recipients and

20 making awards under subparagraph (C), the

21 State shall give preference to applications that

22 demonstrate higher relative levels of homeless

23 need and fiscal distress.

24 ‘‘(4) STATE OR HUD ADMINISTRATION OF

25 GRANTS FOR INDIVIDUAL STATE RECIPIENTS.—If in
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1 any fiscal year a State distributes grant amounts to

2 a State recipient, but the recipient fails to receive

3 the amounts pursuant to paragraph (3)(A), the Sec4 retary or the State, as the Secretary may provide,

5 may distribute the amounts to private nonprofit or6 ganizations in the jurisdiction. If the Secretary dis7 tributes the amounts, the Secretary shall deduct the

8 amounts distributed from the grant provided to the

9 State for the fiscal year.

10 ‘‘(5) HUD ADMINISTRATION OF STATE PRO11 GRAM.—If a State elects pursuant to paragraph

12 (1)(B) to have the Secretary administer grant

13 amounts for the State received under section 409,

14 the Secretary may distribute grant amounts to State

15 recipients for the State, in accordance with require16 ments and procedures prescribed by the Secretary.

17 The Secretary shall establish criteria for selecting

18 recipients and making awards under this paragraph,

19 which shall include giving preference to applications

20 that demonstrate higher relative levels of homeless

21 need and fiscal distress.

22 ‘‘SEC. 411. CITIZEN PARTICIPATION.

23 ‘‘(a) IN GENERAL.—Each grantee who is not a State

24 recipient shall ensure that citizens, and appropriate pri25 vate nonprofit organizations and other interested groups
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1 and entities, participate fully in developing and carrying

2 out the program for providing assistance under this sub3 title in the jurisdiction of the recipient. The Secretary

4 shall prescribe such requirements to carry out this section

5 as the Secretary deems appropriate, which shall include

6 requirements applicable to the homeless assistance plan7 ning boards referred to in subsection (b) and the citizen

8 participation provisions of subsection (c), and the timing

9 of, and sequence for, carrying out the requirements of

10 such subsections.

11 ‘‘(b) HOMELESS ASSISTANCE PLANNING BOARDS.—

12 ‘‘(1) ESTABLISHMENT.—As a condition of a

13 grantee who is not a State recipient receiving assist14 ance under this subtitle, the chief executive officer of

15 the appropriate unit government in the jurisdiction

16 of the grantee shall establish a homeless assistance

17 planning board under this subsection.

18 ‘‘(2) FUNCTIONS.—Each board under this sub19 section shall assist the recipient in—

20 ‘‘(A) determining whether grant amounts

21 of the grantee should be administered by the

22 grantee, a public agency or private nonprofit or23 ganization, or the State or the Secretary, under

24 subsections (a) and (b) of section 410;
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1 (B) developing the application under sec2 tion 408;

3 (C) overseeing the activities carried out

4 with assistance under this subtitle; and

5 (D) evaluating the performance of the

6 grantee (and recipients of the grantee) in carry7 ing out such activities.

8 ‘‘(3) MEMBERSHIP.—Each board under this

9 subsection shall consist of members appointed by the

10 chief executive officer referred to in paragraph (1)

11 (subject to recommendations in accordance with

12 paragraph (4)), and shall include—

13 ‘‘(A) not less than one member represent14 ing homeless individuals and families;

15 ‘‘(B) not less than one member represent16 ing homeless advocates;

17 ‘‘(C) not less than one member represent18 ing individuals and entities providing assistance

19 to homeless individuals and families, including

20 agencies of units of general local government

21 providing Federal assistance;

22 ‘‘(D) not less than one member represent23 ing the business community;

24 ‘‘(E) not less than 1 member representing

25 labor;
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1 ‘‘(F) not less than one member who is a

2 community representative;

3 ‘‘(G) not less than one member of the local

4 board established for the jurisdiction for pur5 poses of allocating amounts under the emer6 gency food and shelter program of the Federal

7 Emergency Management Agency;

8 ‘‘(H) not less than one member represent9 ing the grantee; and

10 ‘‘(I) in the case of a grantee that is a

11 State—

12 ‘‘(i) one member representing the

13 State agency or instrumentality dealing

14 with mental health; and

15 ‘‘(ii) one member representing the

16 State agency or instrumentality dealing

17 with education.

18 ‘‘(4) DISTRIBUTION OF MEMBERSHIP.—Not less

19 than 50 percent of the members of each board under

20 this subsection (including the members required

21 under subparagraphs (A), (B), (C), and (G) of para22 graph (3)) shall be individuals who were rec23 ommended for membership by individuals and enti24 ties other than a unit of general local government or

25 any agency thereof.
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1 ‘‘(5) BOARD REVIEW.—

2 ‘‘(A) APPLICANTS.—No eligible grantee

3 may submit an application to the Secretary

4 under section 408, and no grantee may submit

5 to the Secretary a performance report under

6 subsection 413(a), unless the board under this

7 subsection for the jurisdiction of the grantee

8 has reviewed, and been provided an opportunity

9 to include any comments of the board in, the

10 application or report.

11 ‘‘(B) STATE RECIPIENTS.—No State recip12 ient may submit an application under section

13 410(b)(3) or a performance report to a State,

14 unless the board under this subsection for the

15 jurisdiction has reviewed, and been provided an

16 opportunity to include any comments of the

17 board in, the application or report.

18 ‘‘(6) REVIEW BY SECRETARY.—A member or

19 members of the board under this subsection for a ju20 risdiction or other members of the community may

21 request the Secretary to review process for constitut22 ing or operating the board to determine whether the

23 process is fair. If the Secretary finds that the proc24 ess is unfair and submits a written justification to

25 the board within 15 days of the request for review,
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1 the Secretary may disapprove the application under

2 section 408 for the jurisdiction or refuse to accept

3 a performance report under section 413(a).

4 ‘‘(7) CONFLICTS OF INTEREST.—The Secretary

5 shall prescribe standards governing potential con6 flicts of interest under which members of boards

7 under this subsection may participate in activities

8 carried out under this subtitle.

9 ‘‘(c) INVOLVEMENT OF CITIZENS AND OTHERS.—

10 ‘‘(1) IN GENERAL.—Each recipient shall—

11 ‘‘(A) make available to its citizens, public

12 agencies, and other interested parties informa13 tion concerning the amount of assistance the ju14 risdiction expects to receive and the range of

15 activities that may be undertaken with the

16 assistance;

17 ‘‘(B) publish the proposed application in a

18 manner that, in the determination of the Sec19 retary, affords affected citizens, public agencies,

20 and other interested parties a reasonable oppor21 tunity to examine its content and to submit

22 comments on it;

23 ‘‘(C) hold one or more public hearings to

24 obtain the views of citizens, public agencies, and
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1 other interested parties on the housing needs of

2 the jurisdiction; and

3 ‘‘(D) provide citizens, public agencies, and

4 other interested parties with reasonable access

5 to records regarding any uses of any assistance

6 the recipient may have received under this sub7 title during the preceding 5 years.

8 ‘‘(2) NOTICE AND COMMENT.—Before submit9 ting any performance report under section 413(a) or

10 any substantial amendment to an application under

11 section 408, a recipient shall provide citizens with

12 reasonable notice of, and opportunity to comment

13 on, the performance report or application.

14 ‘‘(3) CONSIDERATION OF COMMENTS.—A recipi15 ent shall consider any comments or views of citizens

16 in preparing a final application, amendment to an

17 application, or performance report for submission. A

18 summary of such comments or views shall be at19 tached when an application, amendment to an appli20 cation, or performance report is submitted. The sub21 mitted application, amendment, or report shall be

22 made available to the public.

23 ‘‘(4) AUTHORITY OF SECRETARY.—The Sec24 retary shall establish procedures appropriate and

25 practicable for providing a fair hearing and timely
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1 resolution of citizen complaints related to applica2 tions or performance reports under this subtitle.

3 ‘‘(d) REQUIREMENTS FOR CITIZEN PARTICIPATION

4 FOR STATE RECIPIENTS AND RECIPIENTS OF AMOUNTS

5 FROM THE SECRETARY.—

6 ‘‘(1) STATE RECIPIENTS.—The State may pre7 scribe citizen participation requirements comparable

8 (to the extent appropriate) to the requirements

9 under the preceding provisions of this section for

10 cases in which a State distributes grant amounts to

11 State recipients, as provided in section 410(b)(2).

12 ‘‘(2) RECIPIENTS FROM SECRETARY.—The Sec13 retary may prescribe citizen participation require14 ments comparable (to the extent appropriate) to the

15 requirements under the preceding provisions of this

16 section for cases in which the Secretary—

17 ‘‘(A) administers the grant amounts of an

18 allocation unit of general local government, as

19 provided in section 410(a)(4); or

20 ‘‘(B) distributes grant amounts to recipi21 ents, as provided in paragraph (3), (4), or (5)

22 of section 410(b).

23 ‘‘(3) INAPPLICABLE LAWS.—The Federal Advi24 sory Committee Act and section 12 of the Depart25 ment of Housing and Urban Development Act shall
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1 not apply with respect to the actions of the Sec2 retary referred to in paragraph (2). The Secretary

3 shall establish appropriate standards under this

4 paragraph to ensure the integrity of the process for

5 awarding assistance.

6 ‘‘SEC. 412. APPLICABILITY OF OTHER PROVISIONS.

7 ‘‘(a) FLOOD ELEVATION REQUIREMENTS.—Flood

8 protection standards applicable to housing acquired, reha9 bilitated, or assisted under this subtitle shall be no more

10 restrictive than the standards applicable to any other pro11 gram administrated by the Secretary.

12 ‘‘(b) ENVIRONMENTAL PROTECTION.—The provi13 sions of, and regulations and procedures applicable under,

14 section 104(g) of the Housing and Community Develop15 ment Act of 1974 shall apply to assistance and projects

16 under this subtitle.

17 ‘‘(c) GAO AUDITS.—Insofar as they relate to funds

18 provided under this subtitle, the financial transactions of

19 grantees and project sponsors may be audited by the Gen20 eral Accounting Office under such rules and regulations

21 as may be prescribed by the Comptroller General of the

22 United States. The representatives of the General Ac23 counting Office shall have access to all books, accounts,

24 records, reports, files and other papers, things, or property

25 belonging to, or in use by such grantees, and project spon-
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1 sors pertaining to the financial transactions and necessary

2 to facilitate the audit.

3 ‘‘SEC. 413. REPORTS, REVIEWS, AND AUDITS.

4 ‘‘(a) GRANTEE PERFORMANCE REPORT.—Each

5 grantee shall submit to the Secretary a performance and

6 evaluation report concerning the use of funds made avail7 able under this subtitle. The report shall be submitted at

8 such time and contain such information as the Secretary

9 shall prescribe, and shall be made available to the relevant

10 boards referred to in section 411(b) and to citizens, public

11 agencies, and other interested parties in the jurisdiction

12 of the grantee in sufficient time to permit the board and

13 the citizens, public agencies, and other interested parties

14 to comment on the report before submission.

15 ‘‘(b) REVIEWS AND AUDITS.—The Secretary shall, at

16 least on an annual basis, make such reviews and audits

17 as may be necessary or appropriate to determine—

18 ‘‘(1) in the case of a grantee (other than a

19 grantee referred to in paragraph (2)), whether the

20 grantee—

21 ‘‘(A) has carried out its activities in a

22 timely manner;

23 ‘‘(B) has made progress toward establish24 ing and maintaining the comprehensive home-
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1 less assistance system in conformity with its ap2 plication under this subtitle;

3 ‘‘(C) has carried out its activities and cer4 tifications in accordance with the requirements

5 of this subtitle and other applicable laws; and

6 ‘‘(D) has a continuing capacity to carry

7 out its activities in a timely manner; and

8 ‘‘(2) in the case of States distributing grant

9 amounts to State recipients, whether the State—

10 ‘‘(A) has distributed amounts to State re11 cipients in a timely manner and in conformance

12 with the method of distribution described in its

13 application;

14 ‘‘(B) has carried out its activities and cer15 tifications in compliance with the requirements

16 of this subtitle and other applicable laws; and

17 ‘‘(C) has made such reviews and audits of

18 the State recipients as may be necessary or ap19 propriate to determine whether they have satis20 fied the applicable performance criteria con21 tained in paragraph (1).

22 The Secretary may make appropriate adjustments in the

23 amount of grants in accordance with the Secretary’s find24 ings under this subsection. With respect to assistance

25 made available for State recipients, the Secretary may ad-
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1 just, reduce, or withdraw such assistance, or take other

2 action as appropriate in accordance with the Secretary’s

3 reviews and audits under this subsection, except that

4 amounts already properly expended on eligible activities

5 under this subtitle shall not be recaptured or deducted

6 from future assistance to such recipients.

7 ‘‘SEC. 414. NONDISCRIMINATION IN PROGRAMS AND AC8 TIVITIES.

9 ‘‘(a) IN GENERAL.—No person in the United States

10 shall on the ground of race, color, national origin, religion,

11 or sex be excluded from participation in, be denied the

12 benefits of, or be subjected to discrimination under any

13 program or activity funded in whole or in part with funds

14 made available under this subtitle. Any prohibition against

15 discrimination on the basis of age under the Age Discrimi16 nation Act of 1975 or with respect to an otherwise quali17 fied handicapped individual, as provided in section 504 of

18 the Rehabilitation Act of 1973, shall also apply to any

19 such program or activity.

20 ‘‘(b) LIMITATIONS.—

21 ‘‘(1) INDIAN TRIBES.—No grant may be made

22 under this subtitle to an Indian tribe unless the ap23 plicant provides satisfactory assurances that its pro24 gram will be conducted and administered in con25 formity with title II of Public Law 90–284. The Sec-
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1 retary may waive, in connection with grants to In2 dian tribes, the provisions of subsection (a).

3 ‘‘(2) HAWAIIAN HOME LANDS.—The provisions

4 of this subtitle relating to discrimination on the

5 basis of race shall not apply to the provision of as6 sistance under this subtitle to the Hawaiian Home

7 Lands.

8 ‘‘SEC. 415. CONSULTATION.

9 In carrying out the provisions of this subtitle, includ10 ing the issuance of regulations, the Secretary shall consult

11 with other Federal agencies administering programs af12 fecting homeless individuals and families through the

13 Interagency Council on the Homeless established under

14 title II.

15 ‘‘SEC. 416. RECORDS, REPORTS, AND AUDITS.

16 ‘‘(a) KEEPING OF RECORDS.—Any recipient (includ17 ing a State distributing grant amounts to State recipients

18 as provided in section 410(b)(2)) shall keep such records

19 as may be reasonably necessary—

20 ‘‘(1) to disclose the amounts and the disposition

21 of the grant amounts; and

22 ‘‘(2) to ensure compliance with the require23 ments of this subtitle.

24 ‘‘(b) ACCESS TO DOCUMENTS BY SECRETARY.—The

25 Secretary shall have access for the purpose of audit and
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1 examination to any books, documents, papers, and records

2 of any recipient specified in subsection (a) that are perti3 nent to grant amounts received in connection with, and

4 the requirements of, this subtitle.

5 ‘‘(c) ACCESS TO DOCUMENTS BY COMPTROLLER

6 GENERAL.—The Comptroller General of the United

7 States, or any of the duly authorized representatives of

8 the Comptroller General, shall have access for the purpose

9 of audit and examination to any books, documents, papers,

10 and records of any recipient specified in subsection (a)

11 that are pertinent to grant amounts received in connection

12 with, and the requirements of, this subtitle.

13 ‘‘SEC. 417. REPORTS TO CONGRESS.

14 ‘‘The Secretary shall submit a report to the Congress

15 annually, summarizing the activities carried out under this

16 subtitle and setting forth the findings, conclusions, and

17 recommendations of the Secretary as a result of the activi18 ties. The report shall be submitted not later than 4

19 months after the end of each fiscal year (except that, in

20 the case of fiscal year 1995, the report shall be submitted

21 not later than 6 months after the end of the fiscal year).

22 ‘‘CHAPTER 2—ELIGIBLE ACTIVITIES

23 ‘‘SEC. 431. HOMELESSNESS PREVENTION.

24 ‘‘(a) ELIGIBLE ACTIVITIES.—A recipient may use

25 grant amounts under this subtitle for activities designed
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1 to help persons and families described in subsection (b)

2 avoid becoming homeless, which shall include assistance

3 for making mortgage payments, rental payments, and util4 ity payments and any activities other than those found by

5 the Secretary to be inconsistent with the purposes of this

6 Act.

7 ‘‘(b) REQUIREMENTS FOR ASSISTANCE.—Assistance

8 may be provided under this section only to very low-income

9 persons and families who have received eviction (or mort10 gage delinquency or foreclosure) notices or notices of ter11 mination of utility services and who—

12 ‘‘(1) are unable to make the required payments

13 due to a sudden reduction in income;

14 ‘‘(2) need such assistance to avoid the eviction

15 or termination of services; and

16 ‘‘(3) have a reasonable prospect of being able to

17 resume payments within a reasonable period of time.

18 ‘‘SEC. 432. EMERGENCY SHELTER.

19 ‘‘(a) ELIGIBLE ACTIVITIES.—A recipient may use

20 grant amounts under this subtitle for—

21 ‘‘(1) the renovation, major rehabilitation, or

22 conversion of a building or buildings to be used as

23 emergency shelters;

24 ‘‘(2) the provision of supportive services, if such

25 services do not supplant any services provided by the
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1 local government during any part of the 12-month

2 period ending on the date of the commencement of

3 the operation of the emergency shelter; and

4 ‘‘(3) maintenance, operation, insurance, utili5 ties, and furnishings for emergency shelters.

6 ‘‘(b) DEFINITION.—A project shall be considered

7 emergency shelter for purposes of this section if the

8 project is designed to provide overnight sleeping accom9 modations for homeless persons. An emergency shelter

10 may include appropriate eating and cooking accommoda11 tions.

12 ‘‘(c) PROGRAM REQUIREMENTS.—A recipient may

13 use grant amounts under this subtitle for an emergency

14 shelter project only if the project sponsor has agreed that

15 it will—

16 ‘‘(1) in the case of assistance involving major

17 rehabilitation or conversion of a building, maintain

18 the building as a shelter for homeless individuals

19 and families for not less than a 10-year period un20 less, within such 10-year period, the need for main21 taining the building as a full-time shelter ceases to

22 exist and the building is used for the remainder of

23 such period to carry out other eligible activities

24 under this subtitle;
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1 ‘‘(2) in the case of assistance involving rehabili2 tation (other than major rehabilitation or conversion

3 of a building), maintain the building as a shelter for

4 homeless individuals and families for not less than

5 a 3-year period; or

6 ‘‘(3) in the case of assistance involving only ac7 tivities described in paragraphs (2) and (3) of sub8 section (a), provide services or shelter to homeless

9 individuals and families at the original site or struc10 ture or other sites or structures serving the same

11 general population for the period during which such

12 assistance is provided;

13 ‘‘(4) comply with the standards of habitability

14 prescribed under subsection (d) by the Secretary and

15 (if applicable) the State or unit of general local gov16 ernment; and

17 ‘‘(5) assist homeless persons in obtaining—

18 ‘‘(A) appropriate supportive service, includ19 ing permanent housing, medical and mental

20 health treatment, counseling, supervision, and

21 other services essential for achieving independ22 ent living; and

23 ‘‘(B) other Federal, State, local, and pri24 vate assistance available for homeless persons.
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1 ‘‘(d) MINIMUM STANDARDS OF HABITABILITY.—The

2 Secretary shall prescribe such minimum standards of hab3 itability as the Secretary determines to be appropriate to

4 ensure that emergency shelters assisted under this section

5 are environments that provide appropriate privacy, safety,

6 and sanitary and other health-related conditions for home7 less persons and families. Grantees may establish stand8 ards of habitability in addition to those prescribed by the

9 Secretary.

10 ‘‘SEC. 433. SUPPORTIVE HOUSING FOR THE HOMELESS.

11 ‘‘(a) ELIGIBLE ACTIVITIES.—A recipient may use

12 grant amounts under this subtitle to provide assistance to

13 a project sponsor of supportive housing in the following

14 manners:

15 ‘‘(1) ACQUISITION AND REHABILITATION.—As16 sistance may be provided in the form of an advance

17 in an amount not exceeding cost of acquisition, sub18 stantial rehabilitation, or acquisition and rehabilita19 tion of an existing structure for use as supportive

20 housing. The repayment of any outstanding debt

21 owed on a loan made to purchase an existing struc22 ture shall be considered to be a cost of acquisition

23 eligible for an advance under this paragraph if the

24 structure was not used as supportive housing before

25 the receipt of assistance.
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1 ‘‘(2) MODERATE REHABILITATION.—Assistance

2 may be provided in the form of a grant for moderate

3 rehabilitation of an existing structure for use as sup4 portive housing. Assistance under this paragraph

5 shall not preclude assistance under paragraph (1).

6 ‘‘(3) OPERATING COSTS.—Assistance may be

7 provided in the form of annual payments for operat8 ing costs of supportive housing (including supportive

9 housing that is newly constructed with assistance

10 provided from sources other than this subtitle) in an

11 amount not exceeding 75 percent of the annual oper12 ating costs of such housing.

13 ‘‘(4) TECHNICAL ASSISTANCE.—Technical as14 sistance may be provided in—

15 ‘‘(A) establishing supportive housing in an

16 existing structure;

17 ‘‘(B) operating supportive housing in exist18 ing structures and in structures that are newly

19 constructed with assistance provided from

20 sources other than this subtitle; and

21 ‘‘(C) providing supportive services to the

22 residents of supportive housing (including sup23 portive housing that is newly constructed with

24 assistance provided from sources other than

25 this subtitle).
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1 ‘‘(5) EMPLOYMENT ASSISTANCE PROGRAM.—

2 Assistance may be provided in the form of a grant

3 for establishing and operating an employment assist4 ance program for the residents of supportive hous5 ing, which shall include—

6 ‘‘(A) employment of residents in the oper7 ation and maintenance of the housing; and

8 ‘‘(B) the payment of the transportation

9 costs of residents to places of employment.

10 ‘‘(6) SUPPORTIVE SERVICES.—Assistance may

11 be provided in the form of a grant for costs of sup12 portive services provided to homeless individuals.

13 Any project sponsor, including program recipients

14 under title IV of this Act before the date of the en15 actment of the Stewart B. McKinney Homeless As16 sistance Amendments Act of 1994, may reapply for

17 such assistance or for the renewal of such assistance

18 to continue services funded under prior grants or to

19 provide other services.

20 ‘‘(7) CHILD CARE SERVICES.—Assistance may

21 be provided in the form of a grant to establish and

22 operate a child care services program for homeless

23 families, which shall—

24 ‘‘(A) include—
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1 ‘‘(i) establishing, licensing, and oper2 ating an on-site child care facility for the

3 residents of transitional housing;

4 ‘‘(ii) making contributions for the

5 child care costs of residents of transitional

6 housing to existing community child care

7 programs and facilities; and

8 ‘‘(iii) counseling designed to inform

9 the residents of transitional housing of

10 public and private child care services for

11 which they are eligible; and

12 ‘‘(B) provide only child care services that

13 comply with any applicable State and local laws

14 and regulations.

15 A grant under this paragraph for any child care

16 services program may not exceed the amount equal

17 to 75 percent of the cost of operating the program

18 for a period not exceeding 5 years.

19 ‘‘(b) SUPPORTIVE HOUSING.—Housing for homeless

20 individuals shall be considered to be supportive housing

21 for purposes of this section if—

22 ‘‘(1) the housing is safe and sanitary and meets

23 any applicable State and local housing codes and li24 censing requirements in the jurisdiction in which the

25 housing is located;
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1 ‘‘(2) the housing is—

2 ‘‘(A) transitional housing;

3 ‘‘(B) permanent housing for homeless per4 sons with disabilities; or

5 ‘‘(C) a particularly innovative project for,

6 or alternative methods of, meeting the imme7 diate and long-term needs of homeless individ8 uals and families (or is part of such a project);

9 and

10 ‘‘(3) supportive services are provided in connec11 tion with the housing to address the special needs of

12 homeless individuals intended to be served by the

13 housing.

14 ‘‘(c) TRANSITIONAL HOUSING.—For purposes of this

15 section, the term ‘transitional housing’ means housing, the

16 purpose of which is to facilitate the movement of homeless

17 individuals and families to permanent housing within 24

18 months or such longer period as the Secretary determines

19 necessary.

20 ‘‘(d) PERMANENT HOUSING FOR HOMELESS PER21 SONS WITH DISABILITIES.—For purposes of this section,

22 the term ‘permanent housing for homeless persons with

23 disabilities’ means community-based housing for homeless

24 persons with disabilities that—
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1 ‘‘(1) is a home designed solely for housing

2 homeless persons with disabilities or dwelling units

3 in a multifamily housing project, condominium

4 project, or cooperative project;

5 ‘‘(2) in the case of a home, is located on a site

6 that does not contain another home used for the

7 same purposes and that is not contiguous to another

8 site containing a home used for the same purposes;

9 and

10 ‘‘(3) provides long-term housing and supportive

11 services for not more than—

12 ‘‘(A) 8 such persons in a single structure

13 or contiguous structures;

14 ‘‘(B) 16 such persons, but only if not more

15 than 20 percent of the units in a structure are

16 designated for such persons; or

17 ‘‘(C) more than 16 persons if the applicant

18 demonstrates that local market conditions dic19 tate the development of a large project and

20 such development will achieve the neighborhood

21 integration objectives of the program within the

22 context of the affected community.

23 ‘‘(e) PROGRAM REQUIREMENTS.—

24 ‘‘(1) REQUIRED AGREEMENTS.—A recipient

25 may use grant amounts under this subtitle for a
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1 supportive housing project under this section only if

2 the project sponsor for the project has agreed—

3 ‘‘(A) to operate the proposed project as

4 supportive housing for not less than 10 years;

5 ‘‘(B) to conduct an ongoing assessment of

6 the supportive services required by the residents

7 of the project;

8 ‘‘(C) to provide such residential supervision

9 as the Secretary determines is necessary to fa10 cilitate the adequate provision of supportive

11 services to the residents of the project; and

12 ‘‘(D) to comply with such other terms and

13 conditions as the Secretary or recipient may es14 tablish for purposes of carrying out this pro15 gram in an effective and efficient manner.

16 ‘‘(2) OCCUPANT CHARGE.—Each homeless indi17 vidual or family residing in a project assisted under

18 this section that provides supportive housing may be

19 required to pay an occupancy charge in an amount

20 determined by the project sponsor, which may not

21 exceed the amount determined under section 3(a) of

22 the United States Housing Act of 1937. Occupancy

23 charges paid may be reserved, in whole or in part,

24 to assist residents in moving to permanent housing.
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1 ‘‘(f) SINGLE ROOM OCCUPANCY DWELLINGS.—A

2 project assisted under this section may provide supportive

3 housing or supportive services in dwelling units that do

4 not contain bathrooms or kitchen facilities and are appro5 priate for use as supportive housing or in projects contain6 ing some or all such dwelling units.

7 ‘‘SEC. 434. SAFE HAVENS FOR HOMELESS INDIVIDUALS.

8 ‘‘(a) ELIGIBLE ACTIVITIES.—A recipient may use

9 grant amounts under this subtitle for—

10 ‘‘(1) the construction of a structure for use in

11 providing a safe haven or the acquisition, rehabilita12 tion, or acquisition and rehabilitation of an existing

13 structure for use in providing a safe haven;

14 ‘‘(2) the leasing of an existing structure for use

15 in providing a safe haven;

16 ‘‘(3) operating costs of a safe haven;

17 ‘‘(4) costs of administering a safe haven pro18 gram, in an amount not exceeding 10 percent of the

19 amounts made available for activities under para20 graphs (1) through (3);

21 ‘‘(5) conducting outreach activities designed to

22 inform eligible persons about and attract them to a

23 safe haven program;

24 ‘‘(6) the provision of low-demand services and

25 referrals for residents of a safe haven; and
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1 ‘‘(7) conducting other activities that further the

2 purposes of this section, including the modification

3 of an existing facility to use a portion of a facility

4 to provide a safe haven.

5 ‘‘(b) DEFINITION.—For purposes of this section, the

6 term ‘safe haven’ means housing for homeless persons

7 who, at the time, are unwilling or unable to participate

8 in mental health treatment programs or to receive other

9 supportive services. Such a facility may provide—

10 ‘‘(1) 24-hour residence for eligible persons who

11 may reside for an unspecified duration;

12 ‘‘(2) private or semiprivate accommodations;

13 ‘‘(3) common use of kitchen facilities, dining

14 rooms, and bathrooms;

15 ‘‘(4) supportive services to eligible persons who

16 are not residents on a drop-in basis; and

17 ‘‘(5) overnight occupancy limited to no more

18 than 25 persons.

19 ‘‘(c) ELIGIBILITY FOR SSI AND MEDICAID.—

20 ‘‘(1) SUPPLEMENTAL SECURITY INCOME.—All

21 provisions of the supplemental security income pro22 gram under title XVI of the Social Security Act and

23 of State programs in supplementation thereof shall

24 apply to participants in the safe havens demonstra-
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1 tion program under this subtitle, except that no indi2 vidual living in a safe haven shall—

3 ‘‘(A) be considered an inmate of a public

4 institution (as provided in section

5 1611(e)(1)(A) of such Act); or

6 ‘‘(B) have benefits under such title XVI re7 duced or terminated because of the receipt of

8 support and maintenance (as provided in sec9 tion 1612(a)(2)(A) of such Act), to the extent

10 such support and maintenance is received as a

11 result of participation in the safe havens dem12 onstration program.

13 ‘‘(2) MEDICAID.—A safe haven shall not be

14 considered a hospital, nursing facility, institution for

15 mental disease as defined under section 1905(i) of

16 the Social Security Act, or any other inpatient facil17 ity, for purposes of the programs under title XIX of

18 such Act, and individuals shall not be denied eligi19 bility for Medicaid because of residency in such resi20 dence.

21 ‘‘SEC. 435. SHELTER PLUS CARE.

22 ‘‘(a) ELIGIBLE ACTIVITIES.—A recipient may use

23 grant amounts under this subtitle to provide shelter plus

24 care for homeless persons with disabilities (primarily per25 sons who have severe and persistent mental or emotional
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1 impairments that seriously limit a person’s ability to live

2 independently, have chronic programs with alcohol, drugs,

3 or both, or have acquired immunodeficiency syndrome and

4 related diseases) and the families of such persons.

5 ‘‘(b) DEFINITION.—For purposes of this section, the

6 term ‘shelter plus care’ means rental housing assistance,

7 in connection with supportive services funded from sources

8 other than under this section. Such rental housing assist9 ance may be tenant-based, project-based, or sponsor10 based.

11 ‘‘SEC. 436. ADMINISTRATIVE AND CAPACITY-BUILDING EX12 PENSES.

13 ‘‘(a) AVAILABILITY OF GRANT AMOUNTS.—A recipi14 ent may use grant amounts under this subtitle for the fol15 lowing expenses:

16 ‘‘(1) ADMINISTRATIVE EXPENSES.—During—

17 ‘‘(A) the first year in which a recipient re18 ceives grant amounts under this subtitle, for

19 administrative expenses in connection with

20 planning the development of, and establishing,

21 its program under this subtitle;

22 ‘‘(B) subsequent years, to defray the cost

23 of administering the program; and

24 ‘‘(C) any year in which a recipient receives

25 grant amounts under this subtitle, to defray the
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1 cost of establishing and operating the board re2 ferred to in section 411(b).

3 Not more than 5 percent of any amounts provided

4 to a recipient under this subtitle for a fiscal year

5 may be used for activities under this paragraph.

6 ‘‘(2) CAPACITY BUILDING FOR NONPROFIT OR7 GANIZATIONS.—For building the capacity of private

8 nonprofit organizations to participate in the com9 prehensive homeless assistance system of the recipi10 ent, except that not more than 2 percent of any

11 amounts provided to a recipient under this subtitle

12 for a fiscal year may be used for activities under this

13 paragraph.

14 ‘‘(b) PROVISION OF ADMINISTRATIVE EXPENSES FOR

15 CERTAIN ENTITIES.—

16 ‘‘(1) PROVISION OF AMOUNTS.—Any recipient

17 under paragraph (2) shall make available, to defray

18 the administrative expenses of the designee or the

19 State, not more than 5 percent from amounts eligi20 ble for this purpose under subsection (a)(1).

21 ‘‘(2) RECIPIENTS COVERED.—The recipients

22 under this paragraph shall be—

23 ‘‘(A) any allocation unit of general local

24 government, Indian Tribe, or insular area, that
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1 designates a public agency or a private non2 profit organization under section 410(a)(2);

3 ‘‘(B) any State recipient that designates a

4 public agency or a private nonprofit organiza5 tion under section 410(b)(3)(A)(ii); and

6 ‘‘(C) any State recipient that enters into

7 an agreement under section 410(b)(3)(A)(iii)

8 with a State.

9 ‘‘SEC. 437. OTHER APPROVED ACTIVITIES.

10 ‘‘The Secretary, in cooperation with grantees, recipi11 ents, and other appropriate parties, shall develop addi12 tional activities to carry out the purposes of this subtitle.

13 A recipient may use grants amounts under this subtitle

14 to carry out any such activities developed and approved

15 by the Secretary.

16 ‘‘Subtitle B—Other Permanent

17 Housing Assistance Programs

18 for the Homeless’’.

19 SEC. 402. REGULATIONS.

20 Not later than 60 days after the date of enactment

21 of this Act, the Secretary of Housing and Urban Develop22 ment shall by notice establish any requirements necessary

23 to carry out the provisions contained in the amendments

24 made by this subtitle. Based on such notice, the Secretary

25 shall issue regulations to carry out such provisions not
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1 later than 12 months after the date of the enactment of

2 this Act.

3 SEC. 403. TRANSITION PROVISIONS.

4 (a) IN GENERAL.—Notwithstanding the provisions of

5 subtitle A of title IV of the Stewart B. McKinney Home6 less Assistance Act (as amended by this subtitle), during

7 fiscal year 1995, the Secretary of Housing and Urban De8 velopment shall allocate homeless assistance made avail9 able under title IV of the Stewart B. McKinney Act in

10 accordance with the regulations for such title in effect im11 mediately before the enactment of this Act. Of any

12 amounts appropriated to carry out section 2 of the HUD

13 Demonstration Act of 1993 in fiscal year 1995, the Sec14 retary may use not more than 10 percent for providing

15 technical assistance to assist recipients under subtitle A

16 of title IV of the Stewart B. McKinney Homeless Assist17 ance Act (as amended by this subtitle) to establish a pro18 gram for providing homeless assistance in accordance with

19 the provisions of such subtitle.

20 (b) REPORT ON SINGLE ROOM OCCUPANCY ASSIST21 ANCE.—Not later than July 1, 1995, the Secretary shall

22 submit a report to the Congress evaluating the effective23 ness of combining the programs for assistance for single

24 room occupancy dwellings under sections 451 and 452 of

25 the Stewart B. McKinney Homeless Assistance Act (as so
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1 redesignated and amended by this Act) into the program

2 for assistance under subtitle A of such Act and, if effec3 tive, describing how to provide such assistance under the

4 program under such subtitle A.

5 Subtitle B—Other Housing Assist6 ance Programs for the Homeless

7 Under McKinney Act

8 SEC. 411. SECTION 8 ASSISTANCE FOR SINGLE ROOM OCCU9 PANCY DWELLINGS.

10 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

11 451(a) of the Stewart B. McKinney Homeless Assistance

12 Act (42 U.S.C. 11401(a)), as so redesignated by section

13 401(3) of this Act, is amended to read as follows:

14 ‘‘(a) INCREASE IN BUDGET AUTHORITY.—The budg15 et authority available under section 5(c) of the United

16 States Housing Act of 1937 for assistance under section

17 8(e)(2) of such Act (as in effect immediately before Octo18 ber 1, 1991) is authorized to be increased by

19 $200,000,000 on or after October 1, 1994, and by

20 $206,000,000 on or after October 1, 1995, and by such

21 sums as may be necessary on or after October 1, 1996.’’.

22 (b) PROGRAM CHANGES.—Section 451 of the Stewart

23 B. McKinney Homeless Assistance Act (42 U.S.C.

24 11401(a)), as so redesignated by section 401(3) of this

25 Act, is amended—
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1 (1) in the second sentence of subsection (c), in

2 the matter preceding paragraph (1), by striking

3 ‘‘containing’’ and inserting the following: ‘‘for the

4 provision of assistance under this section that is spe5 cifically provided for in the comprehensive homeless

6 assistance described in the application under section

7 408 of the relevant eligible grantee and that con8 tains’’; and

9 (2) in subsection (j)(1), by inserting ‘‘recipient

10 under subtitle A,’’ after ‘‘authority,’’.

11 SEC. 412. SECTION 8 ASSISTANCE FOR SHELTER PLUS CARE

12 SINGLE ROOM OCCUPANCY DWELLINGS.

13 Title IV of the Stewart B. McKinney Homeless As14 sistance Act (42 U.S.C. 11361 et seq.) is amended by in15 serting after section 451, as so redesignated by section

16 401(3) of this Act, the following new section:

17 ‘‘SEC. 452. SECTION 8 ASSISTANCE FOR SHELTER PLUS

18 CARE SINGLE ROOM OCCUPANCY DWELL19 INGS.

20 ‘‘(a) PURPOSE.—The purpose of the program under

21 this section is to provide assistance for the moderate reha22 bilitation of single room occupancy housing to be made

23 available for rental, in connection with supportive services

24 funded from sources other than this section, to homeless

25 persons with disabilities (primarily persons who are seri-
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1 ously mentally ill, have chronic problems with alcohol,

2 drugs, or both, or have acquired immunodeficiency syn3 drome and related diseases) and the families of such

4 persons.

5 ‘‘(b) MODERATE REHABILITATION ASSISTANCE.—

6 The Secretary may use amounts made available to carry

7 out this section for moderate rehabilitation of single room

8 occupancy housing described in section 8(n) of the United

9 States Housing Act of 1937 for occupancy by eligible per10 sons in accordance with this section. Such amounts may

11 be used in connection with the moderate rehabilitation of

12 efficiency units if the building owner agrees to pay the

13 additional cost of rehabilitating and operating the effi14 ciency units.

15 ‘‘(c) FUNDING LIMITATIONS.—

16 ‘‘(1) TARGETED POPULATIONS.—To the maxi17 mum extent practicable, the Secretary shall reserve

18 not less than 50 percent of all amounts made avail19 able to carry out this section for homeless individ20 uals who are seriously mentally ill or have chronic

21 problems with alcohol, drugs, or both.

22 ‘‘(2) GEOGRAPHICAL LIMITATION.—Of the as23 sistance made available under this section for any

24 fiscal year, not more than 10 percent may be used
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1 for programs located within any one unit of general

2 local government.

3 ‘‘(d) SUPPORTIVE SERVICES REQUIREMENTS.—

4 ‘‘(1) REQUIREMENT OF MATCHING AMOUNTS.—

5 Each recipient of assistance under this section shall

6 supplement the assistance provided under this sec7 tion with an equal amount of funds for supportive

8 services from sources other than this section. Each

9 recipient shall certify to the Secretary its compliance

10 with this paragraph, and shall include with the cer11 tification a description of the sources and amounts

12 of such supplemental funds.

13 ‘‘(2) DETERMINATION OF MATCHING

14 AMOUNTS.—In calculating the amount of supple15 mental funds provided under this section, a recipient

16 may include the value of any lease on a building, any

17 salary paid to staff to carry out the program of the

18 recipient, and the value of the time and services con19 tributed by volunteers to carry out the program of

20 the recipient at a rate determined by the Secretary.

21 ‘‘(3) RECAPTURE.—If the supportive services

22 and funding for the supportive services required by

23 this subsection are not provided by a recipient, the

24 Secretary may recapture any unexpended housing
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1 assistance provided under this section to the recipi2 ent.

3 ‘‘(e) CONTRACT REQUIREMENTS.—Each contract for

4 annual contributions entered into by the Secretary with

5 a public housing agency to obligate budget authority made

6 available to carry out this section shall—

7 ‘‘(1) commit the Secretary to make the author8 ity available to the public housing agency for an ag9 gregate period of 10 years, and require that any

10 amendments increasing the authority shall be avail11 able for the remainder of such 10-year period;

12 ‘‘(2) provide the Secretary with the option to

13 renew the contract for an additional period of 10

14 years, subject to the availability of authority;

15 ‘‘(3) provide that, notwithstanding any other

16 provision of law, first priority for occupancy of hous17 ing rehabilitated under this section shall be given to

18 homeless persons; and

19 ‘‘(4) require installation in the housing assisted

20 of a sprinkler system that protects all major spaces,

21 hard-wired smoke detectors, and any other fire safe22 ty improvements as may be required by State or

23 local law.
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1 For purposes of this subsection, the term ‘major spaces’

2 means hallways, large common areas, and other areas

3 specified in local fire, building, or safety codes.

4 ‘‘(f) APPLICATIONS.—

5 ‘‘(1) IN GENERAL.—An application for rental

6 housing assistance under this section shall be sub7 mitted by an applicant in such form and in accord8 ance with such procedures as the Secretary shall

9 establish.

10 ‘‘(2) MINIMUM CONTENTS.—The Secretary

11 shall require that an application identify the need

12 for the assistance in the community to be served and

13 shall contain at a minimum—

14 ‘‘(A) a request for housing assistance

15 under this section specifying the number of

16 units requested and the amount of necessary

17 budget authority;

18 ‘‘(B) a description of the size and charac19 teristics of the population of eligible persons;

20 ‘‘(C) an identification of the need for the

21 program in the community to be served;

22 ‘‘(D) the identity of the proposed service

23 provider or providers (which may be, or include,

24 the applicant) and a statement of the qualifica25 tions of the provider or providers;
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1 ‘‘(E) a description of the supportive serv2 ices that the applicant proposes to assure will

3 be available for eligible persons;

4 ‘‘(F) a description of the resources that

5 are expected to be made available to provide the

6 supportive services required by subsection (d);

7 ‘‘(G) a description of the mechanisms for

8 developing a housing and supportive services

9 plan for each person and for monitoring each

10 person’s progress in meeting that plan;

11 ‘‘(H) reasonable assurances satisfactory to

12 the Secretary that the supportive services will

13 be provided for the full term of the housing as14 sistance under this section and a certification

15 from the applicant that it will fund the support16 ive services itself if the planned resources do

17 not become available for any reason;

18 ‘‘(I) a certification by the public official re19 sponsible for submitting the comprehensive

20 housing affordability strategy under section 105

21 of the Cranston-Gonzalez National Affordable

22 Housing Act that the proposed activities are

23 consistent with the approved housing strategy

24 of the unit of general local government within
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1 which housing assistance under this section will

2 be provided; and

3 ‘‘(J) identification of the specific struc4 tures that the recipient is proposing for assist5 ance.

6 ‘‘(g) SELECTION CRITERIA.—The Secretary shall es7 tablish selection criteria for a national competition for as8 sistance under this section which shall include—

9 ‘‘(1) the ability of the applicant to develop and

10 operate the proposed assisted housing and support11 ive services program, taking into account the quality

12 of any ongoing program of the applicant;

13 ‘‘(2) geographic diversity among the projects to

14 be assisted;

15 ‘‘(3) the need for a program providing housing

16 assistance and supportive services for eligible per17 sons in the area to be served;

18 ‘‘(4) the quality of the proposed program for

19 providing supportive services and housing assistance;

20 ‘‘(5) the extent to which the proposed funding

21 for the supportive services is or will be available;

22 ‘‘(6) the extent to which the project would meet

23 the needs of the homeless persons proposed to be

24 served by the program;
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1 ‘‘(7) the extent to which the program integrates

2 program recipients into the community served by the

3 program;

4 ‘‘(8) the cost-effectiveness of the proposed pro5 gram; and

6 ‘‘(9) such other factors as the Secretary speci7 fies in regulations to be appropriate for purposes of

8 carrying out the program established by this section

9 in an effective and efficient manner.

10 ‘‘(h) PARTICIPATION OF HOMELESS INDIVIDUALS.—

11 The Secretary shall, by regulation, require each recipient

12 of assistance under this section to provide for the consulta13 tion and participation of not less than one homeless indi14 vidual or former homeless individual on the board of direc15 tors or other equivalent policymaking entity of the recipi16 ent, to the extent that such entity considers and makes

17 policies and decisions regarding any housing assisted

18 under this section or services for such housing. The Sec19 retary may grant waivers to recipients unable to meet the

20 requirement under the preceding sentence if the recipient

21 agrees to otherwise consult with homeless or formerly

22 homeless individuals in considering and making such poli23 cies and decisions.
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1 ‘‘(i) REQUIRED AGREEMENTS.—The Secretary may

2 not approve assistance under this section for an applicant

3 unless the applicant agrees—

4 ‘‘(1) to operate the proposed program in ac5 cordance with the provisions of this section;

6 ‘‘(2) to conduct an ongoing assessment of the

7 housing assistance and supportive services required

8 by the participants in the program;

9 ‘‘(3) to ensure the adequate provision of sup10 portive services to the participants in the program;

11 ‘‘(4) to comply with such other terms and con12 ditions as the Secretary may establish for purposes

13 of carrying out the program in an effective and effi14 cient manner; and

15 ‘‘(5) to the maximum extent practicable, to in16 volve homeless individuals and families, through em17 ployment volunteer services, or otherwise, in con18 structing or rehabilitating housing assisted under

19 this section and in providing services required under

20 this section.

21 ‘‘(j) HOUSING STANDARDS AND RENT REASONABLE22 NESS.—

23 ‘‘(1) STANDARDS REQUIRED.—The Secretary

24 shall require that—
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1 ‘‘(A) before any assistance may be pro2 vided to or on behalf of a person, each unit as3 sisted under this section shall be inspected by

4 the applicant directly or by another entity, in5 cluding the local public housing agency, to de6 termine that the unit meets the housing quality

7 standards under section 8 of the United States

8 Housing Act of 1937 and that the occupancy

9 charge for the dwelling unit is reasonable; and

10 ‘‘(B) the recipient shall make at least an11 nual inspections of each unit assisted under this

12 section during the term of the contract for such

13 assistance.

14 ‘‘(2) PROHIBITION.—No assistance may be pro15 vided under this section for a dwelling unit (A) for

16 which the occupancy charge is not reasonable, or (B)

17 which fails to meet the housing standards, unless the

18 owner promptly corrects the deficiency and the re19 cipient verifies the correction.

20 ‘‘(k) TENANT RENT.—Each tenant of a dwelling unit

21 assisted under this section shall pay as rent an amount

22 determined in accordance with the provisions of section

23 3(a)(1) of the United States Housing Act of 1937.

24 ‘‘(l) ADMINISTRATIVE FEES.—From amounts made

25 available to carry out this section, the Secretary shall
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1 make amounts available to pay the entity administering

2 the housing assistance an administrative fee in an amount

3 determined appropriate by the Secretary for the costs of

4 administering the housing assistance.

5 ‘‘(m) OCCUPANCY.—

6 ‘‘(1) OCCUPANCY AGREEMENT.—The occupancy

7 agreement between a tenant and an owner of a

8 dwelling unit assisted under this section shall be for

9 at least one month.

10 ‘‘(2) VACANCY PAYMENTS.—If an eligible per11 son vacates a dwelling unit assisted under this sec12 tion before the expiration of the occupancy agree13 ment, no assistance payment may be made with re14 spect to the unit after the month that follows the

15 month during which the unit was vacated, unless it

16 is occupied by another eligible person.

17 ‘‘(n) TERMINATION OF ASSISTANCE.—

18 ‘‘(1) AUTHORITY.—If an eligible individual who

19 receives assistance under this section violates pro20 gram requirements, the recipient may terminate as21 sistance in accordance with the process established

22 pursuant to paragraph (2).

23 ‘‘(2) PROCEDURE.—In terminating assistance

24 under this paragraph, the recipient shall provide a
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1 formal process that recognizes the rights of individ2 uals receiving such assistance to due process of law.

3 ‘‘(o) DEFINITIONS.—For purposes of this section, the

4 following definitions shall apply:

5 ‘‘(1) The term ‘acquired immunodeficiency syn6 drome and related diseases’ has the meaning given

7 such term in section 853 of the Cranston-Gonzalez

8 National Affordable Housing Act.

9 ‘‘(2) The term ‘applicant’ means a State, unit

10 of general local government, Indian tribe, or public

11 housing agency.

12 ‘‘(3) The term ‘eligible person’ means a home13 less person with disabilities (primarily persons who

14 are seriously mentally ill, have chronic problems with

15 alcohol, drugs, or both, or have acquired

16 immunodeficiency syndrome and related diseases)

17 and the family of such a person.

18 ‘‘(4) The term ‘Indian tribe’ has the meaning

19 given such term in section 102 of the Housing and

20 Community Development Act of 1974.

21 ‘‘(5) The term ‘nonprofit organization’ has the

22 meaning given such term by section 104 of the

23 Cranston-Gonzalez National Affordable Housing

24 Act, and includes community mental health centers

25 established as public nonprofit organizations.
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1 ‘‘(6) The term ‘person with disabilities’ has the

2 meaning given such term in section 811 of the Cran3 ston-Gonzalez National Affordable Housing Act.

4 ‘‘(7) The term ‘public housing agency’ has the

5 meaning given such term in section 3(b) of the

6 United States Housing Act of 1937.

7 ‘‘(8) The term ‘recipient’ means an applicant

8 approved for participation in the program to provide

9 assistance under this section.

10 ‘‘(9) The term ‘Secretary’ means the Secretary

11 of Housing and Urban Development.

12 ‘‘(10) The term ‘seriously mentally ill’ means

13 having a severe and persistent mental or emotional

14 impairment that seriously limits a person’s ability to

15 live independently.

16 ‘‘(11) The term ‘State’ means each of the sev17 eral States, the District of Columbia, the Common18 wealth of Puerto Rico, the Commonwealth of the

19 Northern Mariana Islands, the Virgin Islands,

20 Guam, American Samoa, and any other territory or

21 possession of the United States.

22 ‘‘(12) The term ‘supportive services’ means as23 sistance that the Secretary determines (A) addresses

24 the special needs of eligible persons; and (B) pro25 vides appropriate services or assists such persons in
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1 obtaining appropriate services, including health care,

2 mental health services, substance and alcohol abuse

3 services, child care services, case management serv4 ices, counseling, supervision, education, job training,

5 and other services essential for achieving and main6 taining independent living. Inpatient acute hospital

7 care shall not qualify as a supportive service.

8 ‘‘(13) The term ‘unit of general local govern9 ment’ has the meaning given such term in section

10 102 of the Housing and Community Development

11 Act of 1974.

12 ‘‘(p) AUTHORIZATION OF APPROPRIATIONS.—For

13 purposes of providing assistance under this section, there

14 are authorized to be appropriated $75,000,000 for fiscal

15 year 1995, $75,000,000 for fiscal year 1996, and such

16 sums as may be necessary for fiscal year 1997.’’.

17 SEC. 413. RURAL HOMELESSNESS GRANT PROGRAM.

18 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

19 453(l)(1) of the Stewart B. McKinney Homeless Assist20 ance Act (42 U.S.C. 11408(l)(1)), as so redesignated by

21 section 401(3) of this Act, is amended to read as follows:

22 ‘‘(1) IN GENERAL.—There are authorized to be

23 appropriated to carry out this section $32,197,800

24 for fiscal year 1995, $33,163,734 for fiscal year
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1 1996, and such sums as may be appropriated for fis2 cal year 1997.’’.

3 (b) TRANSFER TO DEPARTMENT OF AGRI4 CULTURE.—Section 453 of the Stewart B. McKinney

5 Homeless Assistance Act, as so redesignated by section

6 401(3) of this Act, is amended—

7 (1) in subsection (a), by striking ‘‘Secretary of

8 Housing and Urban Development’’ and inserting

9 ‘‘Secretary of Agriculture’’; and

10 (2) in subsection (k), by striking paragraph (3)

11 and inserting the following new paragraph:

12 ‘‘(3) The term ‘Secretary’ means the Secretary

13 of Agriculture.’’.

14 SEC. 414. STRATEGY TO ELIMINATE UNFIT TRANSIENT FA15 CILITIES.

16 Section 825(b) of the Cranston-Gonzalez National

17 Affordable Housing Act (42 U.S.C. 11301 note) is amend18 ed—

19 (1) in paragraph (2), by striking ‘‘and’’ at the

20 end;

21 (2) in paragraph (3), by striking the period at

22 the end and inserting ‘‘; and’’; and

23 (3) by adding at the end the following new

24 paragraph:
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1 ‘‘(4) that States and units of general local gov2 ernment shall eliminate the use of unfit transient fa3 cilities as housing for homeless families with children

4 not later than July 1, 1997, in the manner provided

5 under the strategy.’’.

6 SEC. 415. CLERICAL AMENDMENT.

7 The table of contents in section 101(b) of the Stewart

8 B. McKinney Homeless Assistance Act is amended by

9 striking the items relating to title IV and inserting the

10 following new items:

‘‘TITLE IV—HOUSING ASSISTANCE

‘‘Subtitle A—Flexible Grant Program

‘‘CHAPTER 1—GENERAL PROVISIONS

‘‘Sec. 401. Purposes.

‘‘Sec. 402. Authorization of appropriations.

‘‘Sec. 403. Definitions.

‘‘Sec. 404. Provision of grants.

‘‘Sec. 405. Comprehensive homeless assistance system.

‘‘Sec. 406. Matching requirements.

‘‘Sec. 407. Responsibilities of grantees and project sponsors.

‘‘Sec. 408. Application.

‘‘Sec. 409. Allocation and distribution of funds.

‘‘Sec. 410. Administration of program.

‘‘Sec. 411. Citizen participation.

‘‘Sec. 412. Applicability of other provisions.

‘‘Sec. 413. Reports, reviews, and audits.

‘‘Sec. 414. Nondiscrimination in programs and activities.

‘‘Sec. 415. Consultation.

‘‘Sec. 416. Records, reports, and audits.

‘‘Sec. 417. Reports to Congress.

‘‘CHAPTER 2—ELIGIBLE ACTIVITIES

‘‘Sec. 431. Homelessness prevention.

‘‘Sec. 432. Emergency shelter.

‘‘Sec. 433. Supportive housing for the homeless.

‘‘Sec. 434. Safe havens for homeless individuals.

‘‘Sec. 435. Shelter plus care.

‘‘Sec. 436. Administrative and capacity-building expenses.

‘‘Sec. 437. Other approved activities.
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‘‘Subtitle B—Other Permanent Housing Assistance Programs for the

Homeless’’.

‘‘Sec. 451. Section 8 assistance for single room occupancy dwellings.

‘‘Sec. 452. Section 8 assistance for shelter plus care single room occupancy

dwellings.

‘‘Sec. 453. Rural homelessness grant program.

‘‘Sec. 454. Use of FMHA inventory for transitional housing for homeless

persons and for turnkey housing.’’.

1 Subtitle C—Miscellaneous

2 Homeless Housing Provisions

3 SEC. 421. INNOVATIVE HOMELESS PROGRAM.

4 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

5 2(f) of the HUD Demonstration Act of 1993 is amended

6 to read as follows:

7 ‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—

8 ‘‘(1) IN GENERAL.—There are authorized to be

9 appropriated to carry out this section $100,000,000

10 for fiscal year 1995.

11 ‘‘(2) USE OF AMOUNTS.—Any amounts appro12 priated under paragraph (1) may be used only to

13 carry out the comprehensive homeless initiative

14 under subsection (c).’’.

15 (b) EXTENSION OF PROGRAM.—Section 2(g) of the

16 HUD Demonstration Act of 1993 (42 U.S.C. 11301 note)

17 is amended by striking ‘‘1994’’ and inserting ‘‘1995’’.

18 SEC. 422. FHA SINGLE FAMILY PROPERTY DISPOSITION.

19 Section 1407 of the Housing and Community Devel20 opment Act of 1992 (Public Law 102–550; 106 Stat.
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1 4034) is amended by striking subsections (a) and (b) and

2 inserting the following new subsections:

3 ‘‘(a) IMMEDIATE AVAILABILITY.—In carrying out the

4 program for disposition of single family properties ac5 quired by the Department of Housing and Urban Develop6 ment for use by the homeless under subpart E of part

7 291 of title 24, Code of Federal Regulations, the Secretary

8 of Housing and Urban Development shall make any eligi9 ble property available for lease under such program with10 out listing and making such property generally available

11 for sale for any intervening period.

12 ‘‘(b) DISCOUNT.—Any property made available for

13 sale under the program referred to in subsection (a) shall

14 be made available at a price equal to the fair market value

15 of the property less a 20 percent discount.’’.

16 TITLE V—HEALTH CARE FOR

17 THE HOMELESS

18 Subtitle A—Categorical Grants for

19 Primary Health Services and

20 Substance Abuse Services

21 SEC. 501. AUTHORIZATION OF APPROPRIATIONS.

22 Section 340(q)(1) of the Public Health Service Act

23 (42 U.S.C. 256(q)(1)) is amended—

24 (1) by striking ‘‘$70,000,000’’ and all that fol25 lows through ‘‘1992, and’’; and
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1 (2) by striking ‘‘and 1994’’ and inserting ‘‘,

2 1994, 1995, 1996, and 1997’’.

3 SEC. 502. ESTABLISHMENT OF PROGRAM FOR PREVENTION

4 AND TREATMENT OF SUBSTANCE ABUSE

5 AMONG HOMELESS INDIVIDUALS.

6 Section 340 of the Public Health Service Act (42

7 U.S.C. 256) is amended by adding at the end the following

8 new subsection:

9 ‘‘(u) GRANTS FOR PREVENTION AND TREATMENT OF

10 SUBSTANCE ABUSE.—

11 ‘‘(1) The Secretary may make grants to public

12 and nonprofit private entities for the purpose of car13 rying out comprehensive projects for the prevention

14 and treatment of substance abuse among homeless

15 individuals.

16 ‘‘(2) In making grants under paragraph (1),

17 the Secretary shall give preference to any qualified

18 applicant that is a grantee under subsection (a) or

19 that is otherwise experienced in the provision to

20 homeless individuals of primary health services or

21 substance abuse services.

22 ‘‘(3)(A) The Secretary may make a grant under

23 paragraph (1) only if the applicant involved agrees

24 that, in the project operated with the grant, the ap25 plicant will, to the extent practicable—
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1 ‘‘(i) employ homeless or formerly homeless

2 individuals; and

3 ‘‘(ii) include not less than one such individ4 ual on the board of directors for the project (or

5 on the equivalent policymaking body for the

6 project), or will otherwise provide for the sig7 nificant participation of such an individual in

8 establishing policies for the project.

9 ‘‘(B) In making grants under paragraph (1), in

10 addition to giving preference to applicants described

11 in paragraph (2), the Secretary shall give preference

12 to any qualified applicant that is in compliance with

13 the conditions specified in subparagraph (A) during

14 the period in which the Secretary is considering the

15 request of the applicant for the grant.

16 ‘‘(4)(A) With respect to the costs of the project

17 to be carried out under paragraph (1) by an appli18 cant, the Secretary may make a grant under such

19 paragraph only if, subject to subparagraph (B), the

20 applicant agrees to make available (directly or

21 through donations from public or private entities)

22 contributions toward such costs in an amount that

23 is not less than $1 for each $3 of Federal funds pro24 vided in the grant (25 percent of such costs).
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1 ‘‘(B)(i) The contributions required in subpara2 graph (A) may be in cash or in kind, fairly evalu3 ated, including plant, equipment, and services. Ex4 cept as provided in clause (ii), amounts provided by

5 the Federal Government, or services assisted or sub6 sidized to any significant extent by the Federal Gov7 ernment, may not be included in determining the

8 amount of such contributions.

9 ‘‘(ii) In determining the amount of contribu10 tions made available by an applicant for purposes of

11 subparagraph (A), the Secretary shall include the

12 amount of any grants, cooperative agreements, or

13 contracts provided by the Federal Government to the

14 applicant for the provision of housing to homeless

15 individuals.

16 ‘‘(5) The Secretary may make a grant under

17 paragraph (1) only if the applicant involved agrees

18 that, in the project operated with the grant, the ap19 plicant will directly provide to homeless individuals,

20 or ensure the availability to homeless individuals of,

21 the following services with respect to substance

22 abuse:

23 ‘‘(A) Counseling.

24 ‘‘(B) Sobering services and detoxification

25 in nonhospital settings.
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1 ‘‘(C) Assessment of the need for services.

2 ‘‘(D) Outreach services to inform the indi3 viduals of the availability of services from the

4 program.

5 ‘‘(E) Case management services, including

6 aiding the individuals in establishing eligibility

7 for assistance, and in obtaining services, under

8 entitlement programs.

9 ‘‘(F) Referrals to public and nonprofit en10 tities for purposes of receiving services with re11 spect to health, mental health, housing, child

12 care, employment and education.

13 ‘‘(G) Followup services.

14 ‘‘(6) The Secretary may authorize grantees

15 under paragraph (1) to expend the grant to treat

16 homeless individuals for substance abuse through

17 programs in which, during the period of treatment,

18 such individuals reside in facilities operated by the

19 grantee.

20 ‘‘(7) In the case of a homeless individual to

21 whom a grantee under paragraph (1) is providing

22 treatment services for substance abuse, the Sec23 retary may authorize the grantee to expend the

24 grant to provide to the individual child care, training

25 in parenting, job training, employment services, and
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1 any other service determined by the Secretary to be

2 appropriate.

3 ‘‘(8) The Secretary may make a grant under

4 paragraph (1) only if the applicant involved agrees

5 that, of the grant and contributions made under

6 paragraph (4), not more than 20 percent will (in the

7 aggregate) be expended for the following purposes

8 with respect to substance abuse:

9 ‘‘(A) Staff training.

10 ‘‘(B) Treatment through programs de11 scribed in paragraph (6).

12 ‘‘(C) Services provided under paragraph

13 (7).

14 ‘‘(9) The Secretary may make a grant under

15 paragraph (1) only if the applicant agrees to collect

16 such data as the Secretary determines to be nec17 essary for assessing the efficacy of services provided

18 under this subsection.

19 ‘‘(10) The Secretary may make grants under

20 paragraph (1) to applicants that will carry out

21 projects under such paragraph directly and to appli22 cants that will carry out the projects through con23 tracts with other public or nonprofit private entities.

24 ‘‘(11) For the purpose of carrying out this sub25 section, there is authorized to be appropriated
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1 $75,000,000 for each of the fiscal years 1995

2 through 1997.’’.

3 Subtitle B—Formula Grants to

4 States for Assistance In Transi5 tion from Homelessness

6 SEC. 511. REQUIREMENT OF ALLOTMENT FOR STATES.

7 Section 521 of the Public Health Service Act (42

8 U.S.C. 290cc–21) is amended by striking ‘‘1994’’ and in9 serting ‘‘1997’’.

10 SEC. 512. AUTHORIZATION OF APPROPRIATIONS.

11 Section 535(a) of the Public Health Service Act (42

12 U.S.C. 290cc–35(a)) is amended by striking the period at

13 the end and inserting ‘‘, and $79,000,000 for each of fiscal

14 years 1995 through 1997.’’.

15 Subtitle C—Categorical Grants Re16 garding Mental Illness and Sub17 stance Abuse

18 SEC. 521. TREATMENT SERVICES FROM COMMUNITY-BASED

19 PROVIDERS.

20 Section 506 of the Public Health Service Act (42

21 U.S.C. 290aa–5), as added by section 106 of Public Law

22 102–321 (106 Stat. 334), is amended in subsection (e)

23 by striking ‘‘for fiscal year 1994’’ and inserting ‘‘for each

24 of the fiscal years 1994 through 1997’’.
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1 TITLE VI—EDUCATION, TRAIN2 ING, AND COMMUNITY SERV3 ICES PROGRAMS

4 SEC. 601. FAMILY SUPPORT CENTERS.

5 (a) AUTHORIZATION OF APPROPRIATIONS.—Section

6 779 of the Stewart B. McKinney Homeless Assistance

7 Act (42 U.S.C. 11489) is amended by striking

8 ‘‘, $50,000,000’’ and all that follows through ‘‘1993’’ and

9 inserting the following: ‘‘such sums as may be necessary

10 for each of fiscal years 1995, 1996, and 1997.’’.

11 (b) EMPLOYMENT OF HOMELESS INDIVIDUALS.—

12 Section 772(e)(2) of the Stewart B. McKinney Homeless

13 Assistance Act (42 U.S.C. 11482(e)(2)) is amended—

14 (1) in subparagraph (M), by striking ‘‘and’’ at

15 the end;

16 (2) in subparagraph (N), by striking the period

17 at the end and inserting ‘‘; and’’; and

18 (3) by adding at the end the following new sub19 paragraph:

20 ‘‘(O) contain an assurance that the appli21 cant will utilize, to the maximum extent prac22 ticable, homeless individuals and families in

23 providing intensive and comprehensive support24 ive services, in operating family support centers,

25 and in otherwise carrying out the program.’’.
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1 (c) PARTICIPATION OF HOMELESS INDIVIDUALS.—

2 Section 772 of the Stewart B. McKinney Homeless Assist3 ance Act (42 U.S.C. 11482) is amended by adding at the

4 end the following new subsection:

5 ‘‘(h) PARTICIPATION OF HOMELESS INDIVIDUALS.—

6 The Secretary shall, by regulation, require each eligible

7 entity receiving assistance under this section (including

8 grants under subsection (b)) to provide for the participa9 tion of not less than 1 homeless individual or former

10 homeless individual on the board of directors or other

11 equivalent policy making entity of the entity, to the extent

12 that such entity considers and makes policies and deci13 sions regarding the program of the entity, or to otherwise

14 provide for the consultation and participation of such an

15 individual in considering and making such policies and

16 decisions.’’.

17 TITLE VII—HOMELESS PRO18 GRAMS RELATING TO FED19 ERAL WELFARE ASSISTANCE

20 SEC. 701. NATIONAL HOMELESS ADVOCATE DEMONSTRA21 TION GRANT PROGRAM.

22 (a) IN GENERAL.—The Stewart B. McKinney Home23 less Assistance Act (42 U.S.C. 11301 et seq.) is amended

24 by adding at the end the following new title:
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1 ‘‘TITLE X—NATIONAL HOMELESS

2 ADVOCATE DEMONSTRATION

3 GRANT PROGRAM

4 ‘‘SEC. 1001. IN GENERAL.

5 ‘‘The Secretary of Health and Human Services, in

6 consultation with the Secretary of Housing and Urban De7 velopment, shall, from amounts appropriated under sec8 tion 1008, provide grants to States for the purpose of pro9 viding compensation to persons who manage Federal bene10 fits (including benefits under the social security program

11 and the old age survivors disability insurance program)

12 on behalf of homeless individuals.

13 ‘‘SEC. 1002. APPLICATIONS.

14 ‘‘To receive a grant under section 1001, a State shall

15 submit to the Secretary an application which contains

16 such information as the Secretary may require, including

17 assurances satisfactory to the Secretary that the State will

18 meet the following requirements:

19 ‘‘(1) USE OF AMOUNTS.—The State will use

20 amounts received from a grant under section 1001

21 only for providing, through the appropriate State

22 agency or unit of local government, compensation to

23 persons who manage Federal benefits on behalf of

24 homeless individuals who reside in such State.
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1 ‘‘(2) PROHIBITION OF COMPENSATION FROM

2 HOMELESS INDIVIDUALS.—The State will require

3 that, as a condition for receiving any amount from

4 a grant under section 1001, a person who manages

5 Federal benefits on behalf of a homeless individual

6 will not collect any compensation from such home7 less individual for the management of such benefits.

8 ‘‘(3) MATCHING FUNDS.—The State will pro9 vide, in a fiscal year from sources other than this

10 title for the purpose of providing compensation for

11 persons who manage Federal benefits on behalf of

12 homeless individuals in such State, funds in an

13 amount equal to not less than $1 for every $3 of

14 Federal funds provided to the State in such fiscal

15 year in a grant under section 1001. Not more than

16 10 percent of such funds may be used for adminis17 trative purposes.

18 ‘‘(4) STATE REPORT.—The State will submit,

19 for any fiscal year in which such State receives a

20 grant under section 1001, a report to the Secretary

21 describing the use of such grant, including—

22 ‘‘(A) the number of persons who receive

23 amounts from such grant; and

24 ‘‘(B) any other information the Secretary

25 determines to be appropriate.
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1 ‘‘SEC. 1003. SELECTION.

2 ‘‘The Secretary shall select States to receive grants

3 under section 1001 which—

4 ‘‘(1) have submitted an application in accord5 ance with the application requirements of section

6 1002; and

7 ‘‘(2) currently have in effect minimum State

8 standards relating to persons who manage govern9 ment benefits on behalf of homeless individuals, as

10 determined by the Secretary.

11 ‘‘SEC. 1004. ALLOCATION.

12 ‘‘The Secretary may not make grants under section

13 1001 in a fiscal year to any State in an amount totaling

14 more than 5 percent of amounts appropriated under sec15 tion 1008 for that fiscal year.

16 ‘‘SEC. 1005. GEOGRAPHIC DIVERSITY.

17 ‘‘To the extent practicable, the Secretary shall make

18 grants to States under section 1001 in a manner which

19 will equitably distribute such grants among the various re20 gions of the United States.

21 ‘‘SEC. 1006. REPORT.

22 ‘‘Not later than January 1, 1997, the Secretary shall

23 submit to the Congress a report containing—

24 ‘‘(1) a compilation of the information contained

25 in the State reports received by the Secretary pursu26 ant to section 1002(4); and
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1 ‘‘(2) an evaluation of the effectiveness of the

2 demonstration grant program.

3 ‘‘SEC. 1007. DEFINITIONS.

4 ‘‘For purposes of this title, the following definitions

5 apply:

6 ‘‘(1) SECRETARY.—The term ‘Secretary’ means

7 the Secretary of Health and Human Services.

8 ‘‘(2) STATE.—The term ‘State’ means each of

9 the several States, the District of Columbia, the

10 Commonwealth of Puerto Rico, the Commonwealth

11 of the Northern Mariana Islands, Guam, the Virgin

12 Islands, American Samoa, and any other territory or

13 possession of the United States.

14 ‘‘SEC. 1008. AUTHORIZATION OF APPROPRIATIONS.

15 ‘‘There are authorized to be appropriated for each of

16 the fiscal years 1995, 1996, and 1997 not more than

17 $40,000,000 to carry out this title. Such sums shall re18 main available until expended.’’.

19 (b) CLERICAL AMENDMENT.—The table of contents

20 in section 101(b) of the Stewart B. McKinney Homeless

21 Assistance Act is amended by adding at the end the follow22 ing new items:

‘‘TITLE X—NATIONAL HOMELESS ADVOCATE DEMONSTRATION

GRANT PROGRAM

‘‘Sec. 1001. In general.

‘‘Sec. 1002. Applications.

‘‘Sec. 1003. Selection.

‘‘Sec. 1004. Allocation.
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‘‘Sec. 1005. Geographic diversity.

‘‘Sec. 1006. Report.

‘‘Sec. 1007. Definitions.

‘‘Sec. 1008. Authorization of appropriations.’’.

1 SEC. 702. QUALIFICATION OF CONSTRUCTION, REHABILITA2 TION, PURCHASE, AND RENTAL OF PERMA3 NENT HOUSING FOR HOMELESS AFDC FAMI4 LIES AS EMERGENCY ASSISTANCE UNDER

5 AFDC PROGRAM.

6 (a) IN GENERAL.—Section 406 of the Social Security

7 Act (42 U.S.C. 606) is amended by inserting after sub8 section (c) the following:

9 ‘‘(d)(1) The term ‘emergency assistance to needy

10 families with children’ includes the qualified expenditures

11 of an eligible State.

12 ‘‘(2) As used in paragraph (1):

13 ‘‘(A) The term ‘eligible State’ means, with re14 spect to a fiscal year, a State that meets the follow15 ing requirements:

16 ‘‘(i) The State plan approved under this

17 part for the fiscal year includes provision for

18 emergency assistance as described in subsection

19 (e) or this subsection.

20 ‘‘(ii) The State has provided assurances to

21 the Secretary that the average amount that the

22 State intends to expend per family for such

23 emergency assistance for the fiscal year would
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1 not exceed such average amount for the imme2 diately preceding fiscal year. The Secretary

3 shall prescribe in regulations standards for de4 termining the period over which capital expendi5 tures incurred in the provision of such emer6 gency assistance are to be amortized.

7 ‘‘(iii) There has been a 30-day period for

8 which the average amount expended by the

9 State for the provision of housing in shelters for

10 the homeless or in hotels, motels, or other tem11 porary accommodations was at least $1,200 per

12 family.

13 ‘‘(B) The term ‘qualified expenditure’ means an

14 expenditure used exclusively for the construction, re15 habilitation, purchase, or rental of permanent hous16 ing—

17 ‘‘(i) by the State, a political subdivision of

18 the State, an agency or instrumentality of the

19 State or of a political subdivision of the State,

20 or a nonprofit organization;

21 ‘‘(ii) all units of which will be used exclu22 sively for rental to families that—

23 ‘‘(I) are eligible (at the time of the

24 rental) for aid under the State plan under

25 this part;
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1 ‘‘(II) have been unable to obtain de2 cent housing at rents not exceeding 30 per3 cent of their income; and

4 ‘‘(III) if such housing were not avail5 able, would be homeless or compelled to

6 live in a shelter for the homeless or in a

7 hotel, motel, or other temporary accom8 modations; and

9 ‘‘(iii) in a local jurisdiction that is experi10 encing a critical shortage of housing units that

11 are affordable to families eligible for aid under

12 the State plan.’’.

13 (b) SUNSET.—Effective 10 years after the date of the

14 enactment of this Act, the amendment made by subsection

15 (a) is hereby repealed.

16 (c) SENSE OF CONGRESS REGARDING PROVISION OF

17 EMERGENCY SHELTER.—In providing emergency shelter

18 to homeless AFDC families, the Congress encourages the

19 States to combine funds available for such purpose under

20 the program of aid to families with dependent children

21 with funds available under other Federal, State, or local

22 programs, including the Community Development Block

23 Grant program, the Home Investment Partnership pro24 gram, and the programs under the Stewart B. McKinney

25 Homeless Assistance Act.
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