I

106TH CONGRESS

1ST SESSION H. R. 1073

To amend title IV of the Stewart B. McKinney Homeless Assistance Act

to consolidate the Federal programs for housing assistance for the homeless into a block grant program that ensures that States and communities

are provided sufficient flexibility to use assistance amounts effectively.

IN THE HOUSE OF REPRESENTATIVES

MARCH 11, 1999

Mr. LAZIO (for himself and Mr. FRANK of Massachusetts) introduced the following bill; which was referred to the Committee on Banking and Financial Services

A BILL

To amend title IV of the Stewart B. McKinney Homeless

Assistance Act to consolidate the Federal programs for

housing assistance for the homeless into a block grant

program that ensures that States and communities are

provided sufficient flexibility to use assistance amounts

effectively.

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.

4 This Act may be cited as the ‘‘Homeless Housing

5 Programs Consolidation and Flexibility Act’’.
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1 SEC. 2. FINDINGS; PURPOSE.

2 (a) FINDINGS.—The Congress finds that—

3 (1) the United States faces a crisis of individ4 uals and families who lack basic affordable housing

5 and appropriate shelter;

6 (2) assistance from the Federal Government is

7 an important factor in the success of efforts by

8 State and local governments and the private sector

9 to address the problem of homelessness in a com10 prehensive manner;

11 (3) there are a multitude of Federal Govern12 ment programs to assist the homeless, including pro13 grams for elderly persons, persons with disabilities,

14 Native Americans, and veterans;

15 (4) many of the Federal programs for the

16 homeless have overlapping objectives, resulting in

17 multiple sources of Federal funding for the same or

18 similar purposes;

19 (5) while the results of Federal programs to as20 sist the homeless generally have been positive, it is

21 clear that there is a need for consolidation and sim22 plification of such programs to better support local

23 efforts;

24 (6) increasing resources available to reduce

25 homelessness are utilized in the development of serv26 ices rather than the creation of housing;
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1 (7) housing programs must be evaluated on the

2 basis of their effectiveness in reducing homelessness,

3 transitioning individuals to permanent housing and

4 self-sufficiency, and creating an adequate plan to

5 discharge homeless persons to and from mainstream

6 service systems;

7 (8) effective homelessness treatment should pro8 vide a comprehensive housing system (including

9 transitional and permanent housing) and, while not

10 all homeless individuals and families attain self-suffi11 ciency and independence by utilizing transitional

12 housing and then permanent housing, in many cases

13 such individuals and families are best able to reenter

14 society directly through permanent, supportive hous15 ing;

16 (9) supportive housing activities support home17 less persons in an environment that can meet their

18 short-term or long-term needs and prepare them to

19 reenter society as appropriate;

20 (10) homelessness should be treated as part of

21 a symptom of many neighborhood and community

22 problems, whose remedies require a holistic approach

23 integrating all available resources;
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1 (11) there are many private sector entities, par2 ticularly nonprofit organizations, that have success3 fully operated homeless programs;

4 (12) employment programs for homeless per5 sons, particularly those who are able-bodied, can be

6 effective in helping homeless persons reenter the

7 workplace and, therefore, such programs should be

8 emphasized as a supportive service;

9 (13) government restrictions and regulations

10 may discourage and impede innovative approaches to

11 homelessness, such as coordination of the various

12 types of assistance that are required by homeless

13 persons; and

14 (14) the Federal Government has a responsibil15 ity to establish partnerships with State and local

16 governments and the private sector to address com17 prehensively the problems of homelessness.

18 (b) PURPOSE.—It is the purpose of this Act—

19 (1) to consolidate the existing housing pro20 grams for homeless persons under title IV of the

21 Stewart B. McKinney Homeless Assistance Act into

22 a single block grant program for housing assistance

23 for the homeless;
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1 (2) to allow flexibility and creativity in rethink2 ing solutions to homelessness, including alternative

3 housing strategies and an improved service sector;

4 (3) to provide Federal assistance to reduce

5 homelessness on a basis that requires recipients of

6 such assistance to supplement the federally provided

7 amounts and thereby guarantee the provision of a

8 certain level of housing and complementary services

9 necessary to meet the needs of the homeless popu10 lation; and

11 (4) to ensure that multiple Federal agencies are

12 involved in the provision of housing, human services,

13 employment, and education assistance both through

14 the funding provided for implementation of the

15 Stewart B. McKinney Homeless Assistance Act and

16 mainstream funding and to encourage entrepreneur17 ial approaches in the provision of housing for home18 less people.

19 SEC. 3. GENERAL PROVISIONS.

20 Title I of the Stewart B. McKinney Homeless Assist21 ance Act (42 U.S.C. 11301 et seq.) is amended—

22 (1) by striking section 102;

23 (2) in section 103—

24 (A) in subsection (a), by striking ‘‘the

25 term ‘homeless’ or ‘homeless individual or
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1 homeless person’ includes’’ and inserting ‘‘the

2 terms ‘homeless individual’ and ‘homeless per3 son’ include’’; and

4 (B) in subsection (c), by striking ‘‘the term

5 ‘homeless’ or ‘homeless individual’ does not in6 clude’’ and inserting ‘‘the terms ‘homeless indi7 vidual’ and ‘homeless person’ do not include’’;

8 and

9 (3) by redesignating sections 103, 104, and 105

10 as sections 102, 103, and 104, respectively.

11 SEC. 4. FEDERAL EMERGENCY MANAGEMENT AGENCY

12 FOOD AND SHELTER PROGRAM.

13 Section 322 of the Stewart B. McKinney Homeless

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

15 follows:

16 ‘‘SEC. 322. AUTHORIZATION OF APPROPRIATIONS.

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

18 this title such sums as may be necessary for each of fiscal

19 years 2000, 2001, 2002, 2003, and 2004.’’.

20 SEC. 5. PERMANENT HOUSING DEVELOPMENT AND FLEXI21 BLE BLOCK GRANT HOMELESS ASSISTANCE

22 PROGRAM.

23 (a) IN GENERAL.—Title IV of the Stewart B. McKin24 ney Homeless Assistance Act (42 U.S.C. 11361 et seq.)

25 is amended to read as follows:
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1 ‘‘TITLE IV—PERMANENT HOUS2 ING DEVELOPMENT AND

3 FLEXIBLE BLOCK GRANT

4 HOMELESS ASSISTANCE PRO5 GRAM

6 ‘‘Subtitle A—General Provisions

7 ‘‘SEC. 401. PURPOSE; PERFORMANCE MEASURES.

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

9 this title is to provide assistance for permanent housing

10 development for homeless persons and promote the devel11 opment of a comprehensive housing system that transi12 tions homeless persons to live as independently as possible,

13 including assistance in the form of permanent housing de14 velopment, supportive housing, emergency shelters, sup15 portive services, and activities to prevent homelessness.

16 ‘‘(b) PERFORMANCE MEASURES.—Consistent with

17 the purposes and requirements of the Government Per18 formance and Results Act of 1993, the programs under

19 this title and the implementation of such programs by the

20 Department of Housing and Urban Development shall

21 comply with the following performance goals:

22 ‘‘(1) The Federal Government shall ensure an

23 effective grant allocation process and sound financial

24 management of the process. Such grant allocation

25 process shall be implemented to ensure that—
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1 ‘‘(A) local governments shall work with the

2 appropriate local board to create innovative

3 plans sufficient to address the needs of home4 less people in their community; and

5 ‘‘(B) all eligible communities receive funds

6 to address the needs of homeless people in such

7 communities through local governments or pri8 vate nonprofit organizations.

9 ‘‘(2) The financial resources provided under

10 this title shall be used effectively to create more low11 cost permanent housing and to transition homeless

12 people to self-sufficiency and permanent housing.

13 ‘‘(3) The Federal Government shall use the

14 Interagency Council on the Homeless as a vehicle to

15 coordinate services, programs, and funds to promote

16 the transition of homeless people to self-sufficiency

17 in permanent housing.

18 ‘‘SEC. 402. GRANT AUTHORITY.

19 ‘‘(a) IN GENERAL.—The Secretary may make grants

20 as provided under this title to eligible grantees for States,

21 metropolitan cities, urban counties, and insular areas for

22 carrying out eligible activities under subtitles B and C.

23 ‘‘(b) GRANT AMOUNTS.—Except as otherwise pro24 vided under this title, amounts for a fiscal year allocated

25 under section 406 shall be used as follows:
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1 ‘‘(1) INSULAR AREAS.—Any amounts for the

2 fiscal year allocated under section 406(a) for an in3 sular area shall be used for a grant to the eligible

4 grantee for the insular area for such fiscal year.

5 ‘‘(2) PERMANENT HOUSING DEVELOPMENT.—

6 Any amounts allocated under section 406(b) for use

7 under subtitle B shall be used for grants under sec8 tion 406(b)(2) to States, metropolitan cities, and

9 urban counties for such fiscal year.

10 ‘‘(3) FLEXIBLE BLOCK GRANT HOMELESS AS11 SISTANCE.—Any amounts allocated under section

12 406(c) for a State, metropolitan city, or urban coun13 ty, shall be used for a grant under section 406(c) to

14 the eligible grantee for the State, metropolitan city,

15 or urban county, for the fiscal year.

16 ‘‘(c) USE FOR ELIGIBLE ACTIVITIES.—Grant

17 amounts provided under this title and any supplemental

18 funds provided under section 407 may be used only as fol19 lows:

20 ‘‘(1) INSULAR AREA GRANTS.—In the case of a

21 grant under subsection (b)(1) for an insular area,

22 for eligible activities under subtitle C benefiting the

23 insular area.

24 ‘‘(2) PERMANENT HOUSING DEVELOPMENT

25 GRANTS.—In the case of a grant under subsection
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1 (b)(2) to a State, metropolitan city, or urban county,

2 for eligible activities under subtitle B within the

3 State, metropolitan city, or urban county, respec4 tively.

5 ‘‘(3) FLEXIBLE BLOCK GRANT HOMELESS AS6 SISTANCE.—In the case of a grant under subsection

7 (b)(3) for a State, metropolitan city, or urban coun8 ty, for eligible activities under subtitle C benefiting

9 the State, metropolitan city, or urban county, and

10 carried out only within nonentitlement areas of the

11 State, within the metropolitan city, or county, re12 spectively, or within a metropolitan city or county

13 that borders on the metropolitan city or county re14 ceiving the grant, as applicable.

15 ‘‘SEC. 403. ELIGIBLE GRANTEES.

16 ‘‘For purposes of this title, the term ‘eligible grantee’

17 has the following meaning:

18 ‘‘(1) GRANTS FOR INSULAR AREAS.—In the

19 case of a grant from amounts allocated under sec20 tion 406(a) for an insular area, such term means—

21 ‘‘(A) the insular area, or an agency, office,

22 or other entity of the area; or

23 ‘‘(B) to the extent that an entity that is a

24 private nonprofit organization is authorized by

25 the government of the insular area to act as the
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1 grantee for the area for purposes of this title,

2 such private nonprofit entity.

3 ‘‘(2) GRANTS FOR PERMANENT HOUSING DE4 VELOPMENT AND FLEXIBLE ASSISTANCE.—In the

5 case of a grant from amounts allocated under sec6 tion 406(b) or section 406(c) for a State, metropoli7 tan city, or urban county, such term means—

8 ‘‘(A) the State, metropolitan city, or urban

9 county, respectively, or an agency, office, or

10 other entity of the State, city, or county, re11 spectively; and

12 ‘‘(B) to the extent that a private nonprofit

13 organization is authorized by the government of

14 the State, metropolitan city, county to act as

15 the grantee for the State, metropolitan city, or

16 county, respectively, for purposes of this title,

17 such private nonprofit organization.

18 ‘‘SEC. 404. USE OF PROJECT SPONSORS.

19 ‘‘(a) TRANSFER OF GRANT AMOUNTS BY GRANT20 EES.—Eligible activities assisted with grant amounts pro21 vided under this title may be carried out directly by the

22 grantee or by other entities serving as project sponsors

23 which are provided such grant amounts by the grantee or

24 a subgrantee of the grantee.
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1 ‘‘(b) COMPETITIVE SELECTION CRITERIA.—To the

2 extent that a grantee does not use grant amounts for eligi3 ble activities carried out directly by the grantee, the grant4 ee shall select eligible activities for assistance and project

5 sponsors to carry out such eligible activities pursuant to

6 a competition based on criteria established by the Sec7 retary, which shall include—

8 ‘‘(1) whether the project sponsor that will carry

9 out the activity is financially responsible;

10 ‘‘(2) the ability of the project sponsor to carry

11 out the eligible activity and the project sponsor’s ex12 perience in successfully transitioning homeless per13 sons into stable, long-term housing;

14 ‘‘(3) the need for the type of eligible activity in

15 the area to be served;

16 ‘‘(4) the extent to which the amount of assist17 ance to be provided with grant amounts will be sup18 plemented with resources from other public and pri19 vate sources;

20 ‘‘(5) the cost-effectiveness of the proposed eligi21 ble activity, considered in relation to the ultimate

22 goal of moving people out of homelessness perma23 nently, including consideration of high-cost area

24 services, and other necessary amenities;
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1 ‘‘(6) the extent to which the project sponsor

2 carrying out the eligible activity—

3 ‘‘(A) will coordinate with Federal, State,

4 local, and private entities serving homeless per5 sons in the development of a comprehensive

6 housing system and in the planning and oper7 ation of the activity; and

8 ‘‘(B) will, pursuant to section 408(m)(3),

9 carry out the activity in coordination and con10 junction with federally funded activities for the

11 homeless;

12 ‘‘(7) the extent to which the project sponsor

13 employs homeless persons or involves homeless per14 sons or formerly homeless persons in the operation

15 and design of its programs; and

16 ‘‘(8) such other factors as the Secretary deter17 mines to be appropriate to carry out this title in an

18 effective and efficient manner.

19 ‘‘SEC. 405. COMPREHENSIVE HOUSING AFFORDABILITY

20 STRATEGY COMPLIANCE.

21 ‘‘A grant under this title may be provided to an eligi22 ble grantee only if—

23 ‘‘(1) the applicable jurisdiction for which the

24 grant amounts are allocated under section 406 has

25 submitted to the Secretary a comprehensive housing
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1 affordability strategy in accordance with section 105

2 of the Cranston-Gonzalez National Affordable Hous3 ing Act and any other requirement established by

4 the Secretary and which is in effect for the fiscal

5 year for which such grant amounts are to be pro6 vided; and

7 ‘‘(2) the public official of such applicable juris8 diction who is responsible for submitting the com9 prehensive housing affordability strategy required by

10 paragraph (1) certifies to the Secretary that the eli11 gible activities to be assisted with such grant

12 amounts are or will be consistent with such com13 prehensive housing affordability strategy, including

14 the plans in such strategy for addressing housing

15 needs for homeless families.

16 ‘‘SEC. 406. ALLOCATION AND AVAILABILITY OF AMOUNTS.

17 ‘‘(a) ALLOCATION FOR INSULAR AREAS.—Of the

18 amount made available for grants under this title for a

19 fiscal year, the Secretary shall reserve for grants for each

20 of the insular areas amounts in accordance with an alloca21 tion formula established by the Secretary.

22 ‘‘(b) ALLOCATION FOR PERMANENT HOUSING DE23 VELOPMENT GRANTS UNDER SUBTITLE B.—

24 ‘‘(1) ANNUAL PORTION OF APPROPRIATED

25 AMOUNT AVAILABLE.—Of the amount made avail-
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1 able for grants under this title for a fiscal year that

2 remains after amounts are reserved under subsection

3 (a), the Secretary shall allocate for use under sub4 title B, 30 percent of such funds.

5 ‘‘(2) GRANTS.—Using the amounts allocated for

6 use under subtitle B for a fiscal year, the Secretary

7 shall make grants to States, metropolitan cities, and

8 urban counties pursuant to a national competition

9 based on the criteria specified in section 404(b) and

10 in accordance with such other factors and proce11 dures as the Secretary determines to be appropriate

12 to carry out this title in an effective and efficient

13 manner.

14 ‘‘(3) LIMITATION.—In making grants using

15 amounts allocated for use under subtitle B for any

16 fiscal year, the Secretary shall ensure that not more

17 than 35 percent of the total amount allocated for

18 such use for such fiscal year is used for activities

19 under section 441 of this Act, as in effect on Octo20 ber 31, 1998.

21 ‘‘(c) ALLOCATION FOR FLEXIBLE BLOCK GRANT

22 HOMELESS ASSISTANCE UNDER SUBTITLE C.—

23 ‘‘(1) ANNUAL PORTION OF APPROPRIATED

24 AMOUNT AVAILABLE FOR SUBTITLE C ACTIVITIES.—

25 Of the amount made available for grants under this
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1 title for a fiscal year that remains after amounts are

2 reserved under subsection (a), the Secretary shall al3 locate for use under subtitle C 70 percent of such

4 funds.

5 ‘‘(2) ALLOCATION OF AMOUNT AVAILABLE BE6 TWEEN METROPOLITAN CITIES AND URBAN COUN7 TIES AND STATES.—Of the amount allocated pursu8 ant to paragraph (1) for use under subtitle C for a

9 fiscal year, 70 percent shall be allocated for metro10 politan cities and urban counties and 30 percent

11 shall be allocated for States.

12 ‘‘(3) INTERIM DETERMINATION OF ALLOCATED

13 AMOUNT.—Except as provided in paragraph (4), the

14 Secretary shall allocate amounts available for use

15 under subtitle C for a fiscal year so that—

16 ‘‘(A) for each metropolitan city and urban

17 county, the percentage of the total amount allo18 cated under this subsection for cities and coun19 ties that is allocated for such city or county is

20 equal to the percentage of the total amount

21 available for the preceding fiscal year under

22 section 106(b) of the Housing and Community

23 Development Act of 1974 for grants to metro24 politan cities and urban counties that was allo25 cated for such city or county; and
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1 ‘‘(B) for each State, the percentage of the

2 total amount allocated under this subsection for

3 States that is allocated for such State is equal

4 to the percentage of the total amount available

5 for the preceding fiscal year under section

6 106(d) of the Housing and Community Devel7 opment Act of 1974 for grants to States that

8 was allocated for such State.

9 ‘‘(4) MINIMUM APPROPRIATION REQUIRE10 MENT.—If, by December 1 of any fiscal year, the

11 amount appropriated for grants under this title for

12 such fiscal year is less than $750,000,000—

13 ‘‘(A) the Secretary shall not allocate

14 amounts for such fiscal year under subsection

15 (b) and this subsection;

16 ‘‘(B) subsection (d) shall not apply to

17 amounts for such fiscal year; and

18 ‘‘(C) notwithstanding any other provision

19 of this title, the Secretary shall make grants

20 under this title from such amounts to States,

21 units of general local government, and private

22 nonprofit organizations, pursuant to a national

23 competition based on the criteria specified in

24 section 404(b).
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1 ‘‘(5) STUDY; SUBMISSION OF INFORMATION TO

2 CONGRESS RELATED TO ALTERNATIVE METHODS OF

3 ALLOCATION.—Not later than 1 year after the date

4 of the enactment of the Homeless Housing Pro5 grams Consolidation and Flexibility Act, the Sec6 retary shall—

7 ‘‘(A) submit to Congress—

8 ‘‘(i) the best available methodology for

9 determining a formula relative to the geo10 graphic allocation of funds under this sub11 title among entitlement communities and

12 nonentitlement areas based on the inci13 dence of homelessness and factors that

14 lead to homelessness;

15 ‘‘(ii) proposed alternatives to the for16 mula submitted pursuant to clause (i) for

17 allocating funds under this section, includ18 ing an evaluation and recommendation on

19 a 75/25 percent formula and other alloca20 tions of flexible block grant homeless as21 sistance between metropolitan cities and

22 urban counties and States under para23 graph (2);

24 ‘‘(iii) an analysis of the deficiencies in

25 the current allocation formula described in
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1 section 106(b) of the Housing and Com2 munity Development Act of 1974;

3 ‘‘(iv) an analysis of the adequacy of

4 current indices used as proxies for measur5 ing homelessness; and

6 ‘‘(v) an analysis of the bases underly7 ing each of the proposed allocation meth8 ods;

9 ‘‘(B) perform the duties required by this

10 paragraph in ongoing consultation with—

11 ‘‘(i) the Subcommittee on Housing

12 Opportunity and Community Development

13 of the Committee on Banking, Housing,

14 and Urban Affairs of the Senate;

15 ‘‘(ii) the Subcommittee on Housing

16 and Community Opportunity of the Com17 mittee on Banking and Financial Services

18 of the House of Representatives;

19 ‘‘(iii) organizations representing

20 States, metropolitan cities and urban coun21 ties;

22 ‘‘(iv) organizations representing rural

23 communities;

24 ‘‘(v) organizations representing veter25 ans;
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1 ‘‘(vi) organizations representing per2 sons with disabilities;

3 ‘‘(vii) members of the academic com4 munity; and

5 ‘‘(viii) national homelessness advocacy

6 groups; and

7 ‘‘(C) estimate the amount of funds that

8 will be received annually by each entitlement

9 community and nonentitlement area under each

10 such alternative allocation system and compare

11 such amounts to the amount of funds received

12 by each entitlement community and nonentitle13 ment area in prior years under this section.

14 ‘‘(6) MINIMUM ALLOCATION AMOUNTS.—

15 ‘‘(A) IN GENERAL.—

16 ‘‘(i) METROPOLITAN CITIES AND

17 URBAN COUNTIES.—Notwithstanding para18 graph (3), if for any fiscal year, the alloca19 tion under subtitle C for a metropolitan

20 city or urban county is less than 0.05 per21 cent of the amounts available for such use,

22 such metropolitan city or urban county

23 shall not receive a grant and its allocation

24 shall be added to the allocation for the

25 State in which such metropolitan city or
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1 urban county is located, except that any

2 such metropolitan city or urban county

3 that received a grant under this title in a

4 previous fiscal year shall be allocated an

5 amount equal to 0.05 percent of the

6 amounts appropriated for such use.

7 ‘‘(ii) STATES.—Notwithstanding para8 graph (3), if in any fiscal year the alloca9 tion under subtitle C for a State is less

10 than $2,000,000, the allocation for that

11 State shall be increased to $2,000,000 and

12 the increase shall be provided by deducting

13 pro rata amounts from the allocations

14 under such subtitle of States with alloca15 tions of more than $2,000,000.

16 ‘‘(B) GRADUATED MINIMUM GRANT ALLOCA17 TIONS.—Notwithstanding subparagraph (A) of this

18 paragraph and notwithstanding paragraph (3), a

19 State, metropolitan city, or urban county shall re20 ceive no less funding under this subsection in the

21 first full fiscal year after the date of the enactment

22 of the Homeless Housing Programs Consolidation

23 and Flexibility Act than 90 percent of the average

24 of the amounts awarded annually to that jurisdiction

25 for homeless assistance programs administered by
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1 the Secretary (not including allocations for shelter

2 plus care and single room occupancy programs as

3 defined in, and in effect pursuant to, this Act prior

4 to the date of the enactment of the Homeless Hous5 ing Programs Consolidation and Flexibility Act)

6 under this title during fiscal years 1996 through

7 1999, no less than 85 percent in the second full fis8 cal year after the date of the enactment of the

9 Homeless Housing Programs Consolidation and

10 Flexibility Act, no less than 80 percent in the third

11 and fourth full fiscal years after the date of the en12 actment of the Homeless Housing Programs Con13 solidation and Flexibility Act, and no less than 75

14 percent in the fifth full fiscal year after the date of

15 the enactment of the Homeless Housing Programs

16 Consolidation and Flexibility Act, but only if the

17 amount appropriated pursuant to section 435 in

18 each such fiscal year exceeds $800,000,000. If that

19 amount does not exceed $800,000,000 in any fiscal

20 year referred to in the first sentence of this para21 graph, the jurisdiction may receive its proportionate

22 share of the amount appropriated which may be less

23 than the amount stated in such sentence for such

24 fiscal year.
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1 ‘‘(7) REDUCTION.—Notwithstanding para2 graphs (1) through (6), in any fiscal year, the Sec3 retary may provide a grant under this subsection for

4 a State, metropolitan city, or urban county, in an

5 amount less than the amount allocated under those

6 paragraphs, if the Secretary determines that the ju7 risdiction has failed to comply with requirements of

8 this title, or that such action is otherwise appro9 priate.

10 ‘‘(d) RECAPTURE OF ALLOCATED AMOUNTS.—The

11 Secretary shall recapture the following amounts:

12 ‘‘(1) UNUSED AMOUNTS.—Not less than once

13 during each fiscal year, the Secretary shall recapture

14 any amounts allocated under this section that—

15 ‘‘(A) are allocated for a State, metropoli16 tan city or urban county, or insular area, but

17 not provided to an eligible grantee for the juris18 diction because of failure to apply for a grant

19 under this title or failure to comply with the re20 quirements of this title;

21 ‘‘(B) were provided to a grantee and (i) re22 captured under this title, or (ii) not utilized by

23 the grantee in accordance with the purposes

24 and objectives of the approved application of
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1 the grantee within a reasonable time period,

2 which the Secretary shall establish; or

3 ‘‘(C) are returned to the Secretary by the

4 time of such reallocation.

5 ‘‘(2) AMOUNTS ALLOCATED TO GRANTEES THAT

6 FAIL TO COMPLY WITH COMPREHENSIVE HOUSING

7 AFFORDABILITY STRATEGY REQUIREMENTS.—Not8 withstanding paragraph (1), if, for any fiscal year,

9 a metropolitan city or urban county fails to comply

10 with the requirement under section 405(1) during

11 the 90-day period beginning on the date that

12 amounts for grants under this title for such fiscal

13 year first become available for allocation, the

14 amounts that would have been allocated under sub15 section (c) of this section for such city or county

16 shall be reallocated for the State in which the unit

17 is located, but only if the State has complied with

18 the requirement under section 405(1). Any amounts

19 that cannot be allocated for a State under the pre20 ceding sentence shall be reallocated for other metro21 politan cities and urban counties and States that

22 comply with such requirement and demonstrate ex23 traordinary need or large numbers of homeless per24 sons, as determined by the Secretary.
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1 ‘‘(e) REALLOCATION OF AMOUNTS.—Any amounts

2 allocated under subsection (b) that are recaptured pursu3 ant to subsection (d)(1) shall be reallocated only for use

4 under subtitle B. Any amounts allocated under subsection

5 (c) that are recaptured pursuant to subsection (d)(1) shall

6 be reallocated only for use under subtitle C.

7 ‘‘SEC. 407. MATCHING FUNDS REQUIREMENT.

8 ‘‘(a) IN GENERAL.—Each State, metropolitan city or

9 urban county, and insular area for which a grant under

10 this title is made shall supplement the amount of the grant

11 provided under this title with an amount that is not less

12 than—

13 ‘‘(1) 50 percent of the amount of such grant,

14 if the State, metropolitan city or urban county, and

15 insular area has indicated in its application for such

16 grant that it will not include as a portion of its sup17 plementation the cost or value of donated services;

18 or

19 ‘‘(2) 100 percent of the grant amount, if the

20 State, metropolitan city, urban county, or insular

21 area indicated in its application for such grant that

22 it will include as a portion of its supplementation the

23 cost or value of donated services.

24 ‘‘(b) MATCHING REQUIREMENT FOR USE OF MORE

25 THAN 35 PERCENT OF FUNDS FOR SUPPORTIVE SERV-
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1 ICES.—In addition to the supplemental funds required

2 pursuant to subsection (a), for the second full fiscal year

3 after the date of the enactment of the Homeless Housing

4 Programs Consolidation and Flexibility Act and each fis5 cal year thereafter, a State, metropolitan city, or urban

6 county shall supplement the grant funds for the State,

7 metropolitan city, or urban county in an amount equal to

8 the amount used by that State, metropolitan city, or urban

9 county for supportive services in a fiscal year that exceeds

10 35 percent of the total grant amount for the State, metro11 politan city, or urban county for that fiscal year.

12 ‘‘(c) TREATMENT OF INDEPENDENT STATE OR

13 LOCAL GOVERNMENT FUNDS.—Any State or local govern14 ment funds used independently from the program under

15 this title, or designated for such use, to assist the homeless

16 by carrying out activities that would be eligible for assist17 ance under this subtitle may be counted toward the

18 amount required pursuant to subsection (a).

19 ‘‘(d) AUTHORITY FOR GRANTEES TO REQUIRE SUP20 PLEMENTATION.—

21 ‘‘(1) IN GENERAL.—Each grantee under this

22 title may require any subgrantee or project sponsor

23 to whom it provides such grant amounts to provide

24 supplemental amounts required under subsections
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1 (a) and (b) with an amount of funds from sources

2 other than this title.

3 ‘‘(2) AMOUNT ALLOWED TO BE REQUIRED BY

4 GRANTEE.—

5 ‘‘(A) GRANT AMOUNT.—Except as pro6 vided in paragraph (3), a grantee may not re7 quire any subgrantee or project sponsor to

8 whom it provides such grant amounts under

9 this title to provide—

10 ‘‘(i) supplemental amounts required

11 under subsection (a)(1) in an amount ex12 ceeding 25 percent of the grant amount

13 provided to the subgrantee or project spon14 sor; or

15 ‘‘(ii) supplemental amounts required

16 under subsection (a)(2) in an amount ex17 ceeding 50 percent of the grant amount

18 provided to the subgrantee or project spon19 sor.

20 ‘‘(B) SUPPORTIVE SERVICES.—A grantee

21 may require any subgrantee or project sponsor

22 to whom it provides grant amounts under this

23 title to provide supplemental amounts required

24 under subsection (b) in an amount equal to the

25 amount used by subgrantee or project sponsor
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1 for supportive services in a fiscal year that ex2 ceeds 35 percent of the total amount allocated

3 pursuant to this subsection for that fiscal year.

4 ‘‘(3) SUPPLEMENTAL FUNDS MAY BE CONSID5 ERED AS MATCHING FUNDS.—Supplemental

6 amounts provided by a subgrantee or project sponsor

7 pursuant to this subsection may be considered sup8 plemental amounts for purposes of compliance by

9 any grantee with the requirement under subsections

10 (a) and (b).

11 ‘‘(e) USE OF FUNDS.—Any supplemental funds made

12 available in compliance with this section shall be available

13 only to carry out eligible activities (1) under subtitle B,

14 if the grant amounts are available only for such activities,

15 or (2) under subtitle C, if the grant amounts are available

16 only for such activities.

17 ‘‘(f) SUPPLEMENTAL FUNDS.—In determining the

18 amount of supplemental funds provided in accordance with

19 this section, the following amounts may be included:

20 ‘‘(1) Cash.

21 ‘‘(2) The value of any donated or purchased

22 material or building.

23 ‘‘(3) The value of any lease on a building.

24 ‘‘(4) The proceeds from bond financing validly

25 issued by a State or unit of general local govern-
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•HR 1073 IH

1 ment, agency, or instrumentality thereof, and repay2 able with revenues derived from the activity assisted

3 under this title.

4 ‘‘(5) The amount of any salary paid to staff to

5 carry out a program for eligible activities under sub6 title B or C.

7 ‘‘(6) The cost or value of any donated goods.

8 ‘‘(7) The value of taxes, fees, or other charges

9 that are normally and customarily imposed, but

10 which are waived or foregone to assist in providing

11 housing or services for the homeless.

12 ‘‘(8) The cost of on-site and off-site infrastruc13 ture that is directly related to and necessary for pro14 viding housing or services for the homeless.

15 ‘‘(9) The cost or value of any donated services,

16 but only if the State, metropolitan city, urban coun17 ty, or insular area has stated in its application for

18 a grant under this title that it shall supplement the

19 amount of such grant, in accordance with section

20 407(a)(2).

21 ‘‘(g) REDUCTION IN MATCHING REQUIREMENTS.—If

22 a jurisdiction certifies to the Secretary that it is in fiscal

23 distress (as defined in section 220(d)(2) of the Cranston24 Gonzalez National Affordable Housing Act) for a fiscal

25 year, the Secretary shall apply the matching requirement
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•HR 1073 IH

1 under subsection (a) to such jurisdiction for such fiscal

2 year by reducing such percentage under subsection (a) to

3 the same extent, in the same manner, and according to

4 the same criteria as matching requirements are reduced

5 under section 220(d) of the Cranston-Gonzalez National

6 Affordable Housing Act.

7 ‘‘SEC. 408. PROGRAM REQUIREMENTS.

8 ‘‘(a) APPLICATIONS.—

9 ‘‘(1) FORM AND PROCEDURE.—The Secretary

10 shall make a grant under this title only pursuant to

11 an application for a grant submitted by an eligible

12 grantee in the form required by this section and in

13 accordance with such other factors and procedures

14 as the Secretary determines to be appropriate. The

15 Secretary may not give preference or priority to any

16 application on the basis that the application was

17 submitted by any particular type of eligible grantee.

18 ‘‘(2) CONTENTS.—The Secretary shall require

19 that applications contain at a minimum the following

20 information:

21 ‘‘(A) GRANTS FOR PERMANENT HOUSING

22 DEVELOPMENT ACTIVITIES.—In the case of an

23 application for a grant available for use for ac24 tivities under subtitle B or an application for a
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•HR 1073 IH

1 grant available for use under subtitle C for per2 manent housing development assistance—

3 ‘‘(i) a description of the permanent

4 housing development activities to be as5 sisted;

6 ‘‘(ii) a description of the entities that

7 will carry out such activities and the pro8 grams for carrying out such activities; and

9 ‘‘(iii) assurances satisfactory to the

10 Secretary that the facility will comply with

11 the requirement under subsection (j).

12 ‘‘(B) FLEXIBLE BLOCK GRANT HOMELESS

13 ASSISTANCE.—In the case of an application for

14 a grant available for use for activities under

15 subtitle C—

16 ‘‘(i) a description of the eligible activi17 ties to be assisted, to the extent available

18 at the time;

19 ‘‘(ii) in the case of a grant for a facil20 ity assisted under paragraph (1) or (2) of

21 section 421(a), assurances satisfactory to

22 the Secretary that the facility will comply

23 with the requirement under subsection (j);

24 ‘‘(iii) in the case of a grant for a sup25 portive housing facility assisted under this
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•HR 1073 IH

1 title that does not receive assistance under

2 paragraph (1) or (2) of section 421(a), an3 nual assurances during the period specified

4 in the application that the facility will be

5 operated for the purpose specified in the

6 application for such period; and

7 ‘‘(iv) in the case of a grant for a sup8 portive housing facility, reasonable assur9 ances that the project sponsor will own or

10 have control of a site not later than the ex11 piration of the 12-month period beginning

12 upon notification of an award of grant as13 sistance, unless the application proposes

14 providing supportive housing assisted

15 under section 421(a)(3) or housing that

16 will eventually be owned or controlled by

17 the families and individuals served; except

18 that a project sponsor may obtain owner19 ship or control of a suitable site different

20 from the site specified in the application.

21 ‘‘(C) ALL GRANTS.—In the case of an ap22 plication for any grant under this title—

23 ‘‘(i) a description of the size and char24 acteristics of the population, including spe25 cific references to populations with special
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•HR 1073 IH

1 needs, that will be served by the eligible

2 activities assisted with grant amounts;

3 ‘‘(ii) a description of the public and

4 private resources that are expected to be

5 made available in connection with grant

6 amounts provided;

7 ‘‘(iii) a description of the process to

8 be used in compliance with section 404(b)

9 to select eligible activities to be assisted

10 and project sponsors;

11 ‘‘(iv) a certification that the applicant

12 will comply with the requirements of the

13 Fair Housing Act, title VI of the Civil

14 Rights Act of 1964, section 504 of the Re15 habilitation Act of 1973, and the Age Dis16 crimination Act of 1975, and will affirma17 tively further fair housing; and

18 ‘‘(v) a statement of whether the appli19 cant will or will not include, as a portion

20 of its supplementation amount required

21 under section 407(a), the cost or value of

22 donated services.

23 ‘‘(b) REQUIRED AGREEMENTS.—The Secretary may

24 not provide a grant under this title for any applicant un25 less the applicant agrees—
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•HR 1073 IH

1 ‘‘(1) to ensure that the eligible activities carried

2 out with grant amounts will be carried out in ac3 cordance with the provisions of this title;

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

5 supportive services required by homeless persons as6 sisted by the eligible activities and the availability of

7 such services to such persons;

8 ‘‘(3) in the case of grant amounts to be used

9 under subtitle C for a supportive housing facility or

10 an emergency shelter, to ensure the provision of

11 such residential supervision as the Secretary deter12 mines is necessary to facilitate the adequate provi13 sion of supportive services to the residents and users

14 of the facility or shelter;

15 ‘‘(4) to monitor and report under section 431 to

16 the Secretary on the progress of the eligible activi17 ties carried out with grant amounts;

18 ‘‘(5) to develop and implement procedures to

19 ensure—

20 ‘‘(A) the confidentiality of records pertain21 ing to any individual provided family violence

22 prevention or treatment services through any

23 activities assisted with grant amounts; and

24 ‘‘(B) that the address or location of any

25 family violence shelter facility assisted with
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•HR 1073 IH

1 grant amounts will not be made public, except

2 with written authorization of the person or per3 sons responsible for the operation of such facil4 ity;

5 ‘‘(6) to the maximum extent practicable, to in6 volve homeless persons and families, through em7 ployment, volunteer services, or otherwise, in carry8 ing out eligible activities assisted with grant

9 amounts; and

10 ‘‘(7) to comply with such other terms and con11 ditions as the Secretary may establish to carry out

12 this title in an effective and efficient manner.

13 ‘‘(c) OCCUPANCY CHARGE.—Any homeless person or

14 family residing in a dwelling unit assisted under this title

15 may be required to pay an occupancy charge in an amount

16 determined by the grantee providing the assistance, which

17 may not exceed an amount equal to 30 percent of the ad18 justed income (as such term is defined in section 3(b) of

19 the United States Housing Act of 1937 or any other sub20 sequent provision of Federal law defining such term for

21 purposes of eligibility for, or rental charges in, public

22 housing) of the person or family. Occupancy charges paid

23 may be reserved, in whole or in part, to assist residents

24 in moving to permanent housing.
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•HR 1073 IH

1 ‘‘(d) FLOOD PROTECTION STANDARDS.—Flood pro2 tection standards applicable to housing acquired, rehabili3 tated, constructed, or assisted with grant amounts pro4 vided under this title shall be no more restrictive than the

5 standards applicable under Executive Order No. 11988

6 (42 U.S.C. 4321 note; relating to floodplain management)

7 to the other programs in effect under this title imme8 diately before the enactment of the Homeless Housing

9 Programs Consolidation and Flexibility Act.

10 ‘‘(e) PARTICIPATION OF CITIZENS AND OTHERS.

11 ‘‘(1) IN GENERAL.—Each grantee shall—

12 ‘‘(A) each fiscal year, make available to its

13 citizens, public agencies, and other interested

14 parties information concerning the amount of

15 assistance the jurisdiction expects to receive

16 and the range of activities that may be under17 taken with the assistance;

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

19 manner that, in the determination of the Sec20 retary, affords affected citizens, public agencies,

21 and other interested parties a reasonable oppor22 tunity to examine its content and to submit

23 comments on it;

24 ‘‘(C) each fiscal year, hold one or more

25 public hearings to obtain the views of citizens,
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•HR 1073 IH

1 public agencies, and other interested parties on

2 the housing needs of 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 grantee may have received under this sub7 title during the preceding 5 years.

8 ‘‘(2) ELECTRONIC ACCESS.—A grantee may

9 comply with the requirement under subparagraphs

10 (A), (B), and (D) of paragraph (1) by making the

11 information available through interactive computer

12 or telephone services or other electronic information

13 networks and systems appropriate for making such

14 information widely available to the public.

15 ‘‘(3) NOTICE AND COMMENT.—Before submit16 ting any substantial amendment to an application

17 under this Act, a grantee shall provide citizens with

18 reasonable notice of, and opportunity to comment

19 on, the amendment.

20 ‘‘(4) CONSIDERATION OF COMMENTS.—A grant21 ee shall consider any comments or views of citizens

22 in preparing a final application or amendment to an

23 application for submission. A summary of such com24 ments or views shall be attached when an application

25 or amendment to an application is submitted. The
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•HR 1073 IH

1 submitted application or amendment shall be made

2 available to the public.

3 ‘‘(5) AUTHORITY OF SECRETARY.—The Sec4 retary shall establish procedures appropriate and

5 practicable for providing a fair hearing and timely

6 resolution of citizen complaints related to applica7 tions under this subtitle.

8 ‘‘(6) HOMELESS INDIVIDUALS.—The Secretary

9 shall, by regulation, require each grantee to ensure

10 that each project sponsor assisted by the grantee

11 provides for the participation of not less than 1

12 homeless person or former homeless person on the

13 board of directors or other equivalent policymaking

14 entity of the project sponsor, to the extent that such

15 sponsor considers and makes policies and decisions

16 regarding any activity, facility, supportive services,

17 or assistance provided with grant amounts under

18 this title. The Secretary shall provide that a grantee

19 may grant waivers to project sponsors unable to

20 meet the requirement under the preceding sentence

21 if the sponsor agrees to otherwise consult with

22 homeless or formerly homeless persons in consider23 ing and making such policies and decisions.

24 ‘‘(f) LIMITATION ON USE OF FUNDS.—No grant

25 amounts received under this title (or any funds provided
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•HR 1073 IH

1 under section 407 or otherwise to supplement such grants)

2 may be used to replace other State or local funds pre3 viously used, or designated for use, to assist homeless per4 sons.

5 ‘‘(g) LIMITATION ON ADMINISTRATIVE EXPENSES.—

6 Notwithstanding any other provision of this title, of any

7 grant amounts under this title used to carry out eligible

8 activities, the grantee or the project sponsor may use for

9 administrative purposes—

10 ‘‘(1) an amount not exceeding 5 percent of such

11 grant amount; or

12 ‘‘(2) if the grantee implements use of a stand13 ardized homeless database management system to

14 record and assess data on the usage of homeless

15 housing, services, and client needs, and on the num16 ber of and other information related to populations

17 with special needs, an amount not exceeding 7.5 per18 cent of such grant amount.

19 ‘‘(h) HOUSING QUALITY.—

20 ‘‘(1) REQUIREMENT.—Assistance may not be

21 provided with grant amounts made available for use

22 under this title for any permanent housing develop23 ment, dwelling unit, supportive housing facility, or

24 emergency shelter that fails to comply with the hous25 ing quality standards applicable under paragraph (2)
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•HR 1073 IH

1 in the jurisdiction in which the housing is located,

2 unless the deficiency is promptly corrected and the

3 project sponsor verifies the correction.

4 ‘‘(2) APPLICABLE STANDARDS.—The housing

5 quality standards applicable under this subsection to

6 any permanent housing, dwelling unit, supportive

7 housing facility, or emergency shelter shall be—

8 ‘‘(A) in the case of permanent housing, a

9 unit, facility, or shelter located in a jurisdiction

10 which has in effect laws, regulations, standards,

11 or codes regarding habitability of such housing,

12 units, facilities, or shelters that provide protec13 tion to residents of the dwellings that is equal

14 to or greater than the protection provided under

15 the housing quality standards established under

16 paragraph (3), such applicable laws, regula17 tions, standards, or codes; or

18 ‘‘(B) in the case of permanent housing, a

19 unit, facility, or shelter located in a jurisdiction

20 which does not have in effect laws, regulations,

21 standards, or codes described in subparagraph

22 (A), the housing quality standards established

23 under paragraph (3).

24 ‘‘(3) FEDERAL HOUSING QUALITY STAND25 ARDS.—The Secretary shall establish housing quality
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•HR 1073 IH

1 standards under this paragraph that ensure that

2 permanent housing, dwelling units, supportive hous3 ing facilities, and emergency shelters assisted under

4 this title are safe, clean, and healthy. Such stand5 ards shall include requirements relating to habit6 ability, including maintenance, health and sanitation

7 factors, condition, and construction of dwellings. The

8 Secretary shall differentiate between major and

9 minor violations of such standards and may estab10 lish separate standards for permanent housing,

11 dwelling units, supportive housing facilities, and

12 emergency shelters.

13 ‘‘(i) TERMINATION OF ASSISTANCE.—If a person or

14 family (not including residents of an emergency shelter)

15 who receives assistance under this title violates program

16 requirements, the project sponsor may terminate assist17 ance in accordance with a formal process established by

18 such sponsor that recognizes the rights of individuals re19 ceiving such assistance to due process of law, which may

20 include a hearing.

21 ‘‘(j) USE RESTRICTIONS.—

22 ‘‘(1) ACQUISITION, REHABILITATION, AND NEW

23 CONSTRUCTION.—

24 ‘‘(A) IN GENERAL.—Except as provided in

25 subparagraph (B), each housing facility assisted
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•HR 1073 IH

1 under subtitle B or subtitle C shall be operated

2 as housing for the purpose specified in the ap3 plication for assistance with amounts under this

4 title for not less than 20 years after such facil5 ity is initially placed in service pursuant to such

6 assistance.

7 ‘‘(B) EXCEPTIONS.—

8 (i) INABILITY TO OPERATE FACIL9 ITY.—If, within such 20-year period, the

10 need for maintaining the facility as hous11 ing for the purpose specified in the appli12 cation for assistance ceases to exist (as de13 termined by the Secretary pursuant to a

14 recommendation by the chief executive offi15 cer of the appropriate unit of general local

16 government or project sponsor, taking into

17 consideration the comprehensive housing

18 affordability strategy of the jurisdiction),

19 or the project sponsor is unable to operate

20 the facility as supportive housing, the facil21 ity may be used as affordable housing (in

22 accordance with section 215 of the Cran23 ston-Gonzalez National Affordable Housing

24 Act).
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•HR 1073 IH

1 ‘‘(ii) APPLICABILITY OF OTHER PRO2 GRAM RESTRICTION.—If the housing facil3 ity receives assistance under any other

4 Federal program (including assistance

5 under section 42 of the Internal Revenue

6 Code of 1986) for low-income families,

7 homeless persons, or any other use consist8 ent with assistance under this title, and

9 the use restriction under such program is

10 less than 20 years, the restriction under

11 such program shall apply.

12 ‘‘(2) OTHER ASSISTANCE.—Each housing facil13 ity assisted under subtitle C shall be operated for

14 the purposes specified in the application for assist15 ance with amounts under this title for the duration

16 of the period covered by the grant.

17 ‘‘(3) CONVERSION.—Notwithstanding para18 graphs (1) and (2), if the Secretary determines that

19 a housing facility is no longer needed for use as

20 housing for the purposes specified in the application

21 for assistance and approves the use of the facility

22 for the direct benefit of low-income persons pursuant

23 to a request for such use by the project sponsor, the

24 Secretary may authorize the sponsor to convert the

25 facility to such use.
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•HR 1073 IH

1 ‘‘(k) REPAYMENT OF ASSISTANCE AND PREVENTION

2 OF UNDUE BENEFITS.—

3 ‘‘(1) REPAYMENT.—If a facility assisted under

4 subtitle B or subtitle C violates the requirement

5 under subsection (j)(1)(A) or (j)(1)(B)(ii) of this

6 section during the 10-year period beginning upon

7 placement of the facility in service pursuant to such

8 assistance, the Secretary shall require the grantee to

9 repay to the Secretary 100 percent of any grant

10 amounts received for such facility under such para11 graph. If such a facility violates such requirement

12 after such 10-year period, the Secretary shall require

13 the grantee to repay the percentage of any grant

14 amounts received for such facility that is equal to

15 100 percent minus 10 percent for each year in ex16 cess of 10 that the facility is operated as supportive

17 housing.

18 ‘‘(2) PREVENTION OF UNDUE BENEFITS.—Ex19 cept as provided in paragraph (3), upon any sale or

20 other disposition of a facility assisted under subtitle

21 B or C occurring before the expiration of the 20-

22 year period beginning on the date that the facility

23 is placed in service, the project sponsor shall comply

24 with such terms and conditions as the Secretary may
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1 prescribe to prevent the sponsor from unduly bene2 fiting from such sale or disposition.

3 ‘‘(3) EXCEPTION.—Paragraphs (1) and (2)

4 shall not apply to any sale or disposition of a facility

5 that results in the use of the facility for the direct

6 benefit of very low-income families if all of the pro7 ceeds are used to provide housing meeting the re8 quirements of subtitle B or C.

9 ‘‘(4) FAILURE TO OBTAIN SITE.—If a grantee

10 of assistance made available for use under this title

11 obligates assistance for a housing facility other than

12 a facility under section 421(a)(3) or housing that

13 will eventually be owned or controlled by the families

14 and individuals served, and the project sponsor fails

15 to obtain ownership or control of a suitable site for

16 a proposed supportive housing facility during the 12-

17 month period beginning upon the notification of an

18 award of grant assistance, the grantee shall recap19 ture the assistance and make such assistance avail20 able under this subtitle.

21 ‘‘(l) LOCAL BOARDS.—

22 ‘‘(1) ESTABLISHMENT AND FUNCTION.—The

23 head of the executive branch of government of each

24 grantee shall establish and appoint members to a

25 local board, which shall assist the jurisdiction in—
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•HR 1073 IH

1 ‘‘(A) determining whether the grant should

2 be administered by the jurisdiction, a public

3 agency, a private nonprofit organization, the

4 State, or the Secretary;

5 ‘‘(B) developing the application under sec6 tion 408;

7 ‘‘(C) overseeing the activities carried out

8 with assistance under this title; and

9 ‘‘(D) preparing the performance report

10 under section 431.

11 ‘‘(2) COMPOSITION OF LOCAL BOARDS.—

12 ‘‘(A) NOMINATION.—Members of a local

13 board appointed to meet the requirements of

14 subparagraph (D) shall be nominated by per15 sons, other than governmental officials or enti16 ties, that represent the groups listed in sub17 paragraph (D).

18 ‘‘(B) PRIORITY.—Persons who will improve

19 access to a broad range of services for homeless

20 persons and who are sensitive to the varying

21 needs of homeless persons, including veterans,

22 the mentally ill, families with children, young

23 persons, battered spouses, victims of substance

24 abuse, and persons with AIDS, shall be given

25 preference when selecting local board members.
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1 ‘‘(C) COMMUNITY SUPPORT CONSID2 ERED.—In appointing members to the local

3 board, the chief executive of each grantee shall

4 consider the extent of support for the nominee

5 in the community which the board shall serve.

6 ‘‘(D) MAJORITY.—Not less than 51 per7 cent of the members of a local board shall be

8 composed of—

9 ‘‘(i) homeless or formerly homeless

10 persons;

11 ‘‘(ii) persons who act as advocates for

12 homeless persons; and

13 ‘‘(iii) persons who provide assistance

14 to homeless persons, including representa15 tives of local veterans organizations and

16 veteran service providers who assist home17 less veterans.

18 ‘‘(E) OTHER LOCAL BOARD MEMBERS.—

19 After the requirements of subparagraph (D) are

20 met, other members of a local board shall be

21 chosen from—

22 ‘‘(i) members of the business commu23 nity of the jurisdiction receiving the grant;
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•HR 1073 IH

1 ‘‘(ii) members of neighborhood advo2 cates in the jurisdiction receiving the

3 grant; and

4 ‘‘(iii) government officials of the juris5 diction receiving the grant.

6 ‘‘(3) WAIVER OF REQUIREMENTS FOR LOCAL

7 BOARD.—The Secretary may waive the requirements

8 of this subsection if the jurisdiction has an existing

9 board that substantially meets the requirements of

10 this subsection.

11 ‘‘(m) COORDINATION OF HOMELESS PROGRAMS.—

12 ‘‘(1) PURPOSE.—The purpose of the consulta13 tion and coordination required under this subsection

14 is to provide various services, activities, and assist15 ance for homeless persons and families in an effi16 cient, effective, and targeted manner designed to

17 meet the comprehensive needs of the homeless.

18 ‘‘(2) IN GENERAL.—The Chairperson of the

19 Interagency Council on the Homeless shall consult

20 and coordinate with the Secretary of Housing and

21 Urban Development, the Secretary of Health and

22 Human Services, the Secretary of Labor, the Sec23 retary of Education, the Secretary of Veterans Af24 fairs, and the Secretary of Agriculture and shall en25 sure that assistance for federally funded activities
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1 for the homeless is made available, to the greatest

2 extent practicable, in conjunction and coordination

3 with assistance for other federally funded activities

4 for the homeless and with assistance under this title.

5 ‘‘(3) REQUIREMENTS FOR HOUSING ASSIST6 ANCE.—The Secretary shall establish such require7 ments as the Secretary considers necessary to ensure

8 that grant amounts provided under this title are

9 used by grantees and project sponsors, to the great10 est extent practicable, in coordination and in con11 junction with federally funded activities for the

12 homeless.

13 ‘‘(4) DEFINITION.—For purposes of this sub14 section, the term ‘federally funded activities for the

15 homeless’ means activities to assist homeless per16 sons, including homeless veterans, or homeless fami17 lies that are funded (in whole or in part) with

18 amounts provided by the Federal Government (other

19 than amounts provided under this title) and

20 includes—

21 ‘‘(A) the programs for health care under

22 sections 340 and part C of title V of the Public

23 Health Service Act;
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•HR 1073 IH

1 ‘‘(B) the programs for education, training

2 and community services under title VII of the

3 Stewart B. McKinney Homeless Assistance Act;

4 ‘‘(C) food assistance for homeless persons

5 and families through the food programs under

6 the Food Stamp Act of 1977 and the Emer7 gency Food Assistance Act of 1983;

8 ‘‘(D) the job training, housing, and medi9 cal programs for homeless veterans of the De10 partment of Veterans Affairs;

11 ‘‘(E) the job corps centers for homeless

12 families program under section 433A of the Job

13 Training Partnership Act;

14 ‘‘(F) the program for preventive services

15 for children of homeless families or families at

16 risk of homelessness under title III of the Child

17 Abuse Prevention and Treatment Act;

18 ‘‘(G) the programs under the Runaway

19 and Homeless Youth Act; and

20 ‘‘(H) assistance for homeless persons, in21 cluding homeless veterans, and families under

22 State programs funded under supplemental se23 curity income programs under part A of title IV

24 or under title XVI of the Social Security Act.
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•HR 1073 IH

1 ‘‘(5) COMPANION SERVICES BLOCK GRANTS IN

2 CASES OF FAILURE TO COMPLY.—

3 ‘‘(A) IN GENERAL.—If, for any fiscal year,

4 the Chairperson of the Interagency Council on

5 the Homeless determines that adequate coordi6 nation has not taken place to ensure that as7 sistance for federally funded activities for the

8 homeless is made available in conjunction and

9 coordination with assistance under this title (as

10 required under paragraph (2)), the Chairperson

11 of the Interagency Council on the Homeless and

12 the Secretary, in consultation with the Inter13 agency Council on the Homeless, shall carry out

14 a program under subparagraph (B) to make

15 companion services block grants available for

16 such fiscal year.

17 ‘‘(B) COMPANION SERVICE BLOCK

18 GRANTS.—The block grant program under this

19 subparagraph shall provide block grants, using

20 amounts available pursuant to subparagraph

21 (C), to eligible grantees under this title to pro22 vide services of the type available under the

23 programs referred to in paragraph (4) in con24 nection with housing assistance under this title.

25 ‘‘(C) FUNDING.—
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1 ‘‘(i) IN GENERAL.—Notwithstanding

2 any other provision of law, in any fiscal

3 year in which block grants are to be pro4 vided in accordance with subparagraph

5 (A), there shall be available for such block

6 grants, of the amount made available for

7 such fiscal year for each activity referred

8 to in paragraph (4), 10 percent of such

9 amount, as determined by the Secretary

10 and the Interagency Council on the Home11 less.

12 ‘‘(ii) LIMITATION.—Notwithstanding

13 clause (i), the aggregate amount available

14 for companion services block grants under

15 this paragraph for a fiscal year shall not

16 exceed the total amount made available

17 pursuant to section 435 for housing assist18 ance under this title. If, for any fiscal year,

19 the amount determined under clause (i) ex20 ceeds such amount, the Secretary shall re21 duce the percentage under clause (i) for

22 such year so that the aggregate amount

23 made available for companion services

24 block grants under this paragraph from

25 the amounts for each activity referred to in
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1 paragraph (4) is equal to the total amount

2 made available pursuant to section 435 for

3 housing assistance under this title.

4 ‘‘(D) TRANSFER AUTHORITY.—Except to

5 the extent that the authority of the Secretary

6 and the Chairperson of the Interagency Council

7 on the Homeless is limited by appropriations,

8 and with the concurrence of the head of the af9 fected agency and upon advance approval of the

10 Committees on Appropriations and the author11 izing committees of the House of Representa12 tives and the Senate, the Secretary and the

13 Chairperson of the Interagency Council on the

14 Homeless shall transfer funds made available

15 under subparagraph (C) to the companion serv16 ices block grant for federally funded activities,

17 functions, or programs for the homeless.

18 ‘‘(E) REPORT.—Not later than the first

19 quarter of the first full fiscal year after the

20 date of the enactment of the Homeless Housing

21 Programs Consolidation and Flexibility Act and

22 each quarter thereafter, the Secretary and the

23 Chairperson of the Interagency Council on the

24 Homeless shall report to Congress on—
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1 ‘‘(i) the need for any reprogramming

2 or transfer of funds appropriated for feder3 ally funded activities, functions, or pro4 grams for the homeless; and

5 ‘‘(ii) any funds appropriated for feder6 ally funded activities, functions, or pro7 grams for the homeless that were repro8 grammed or transferred during the quarter

9 covered by the report.

10 ‘‘(n) CONSULTATION REGARDING USE OF NATIONAL

11 GUARD FACILITIES AS HOMELESS SHELTERS.—The Sec12 retary may not provide a grant for a fiscal year from

13 amounts for such year allocated under section 406(c) for

14 use under subtitle C for a State unless the State has con15 sulted with the Secretary regarding the possibility of mak16 ing any space at National Guard facilities under the juris17 diction of the State available, during such fiscal year, for

18 use by homeless organizations to provide shelter to home19 less persons, but only at the times that such space is not

20 actively being used for National Guard purposes or other

21 public purposes already undertaken.

22 ‘‘SEC. 409. SUPPORTIVE SERVICES.

23 ‘‘(a) REQUIREMENT.—To the extent allowed by this

24 title, each project sponsor administering permanent hous25 ing development assistance provided with amounts under
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1 this title or a supportive housing facility or emergency

2 shelter assisted with such amounts shall provide support3 ive services for residents of the dwelling units or facility

4 or shelter assisted. The array of supportive services pro5 vided may be designed by the grantee or the project spon6 sor administering the assistance, facility, or shelter. A

7 project sponsor administering a supportive housing facility

8 shall provide supportive services for other homeless per9 sons using the facility.

10 ‘‘(b) TARGETING POPULATIONS WITH SPECIAL

11 NEEDS.—Supportive services provided with grant

12 amounts under this title shall address the special needs

13 of homeless persons (such as homeless persons with

14 disabilities, homeless persons with acquired immuno15 deficiency syndrome and related diseases, homeless per16 sons who have chronic problems with alcohol or drugs (or

17 both), veterans who are homeless, and homeless families

18 with children) intended to be served.

19 ‘‘(c) SERVICES.—Supportive services may include ac20 tivities such as—

21 ‘‘(1) establishing and operating a child care

22 services program for homeless families;

23 ‘‘(2) establishing and operating an employment

24 assistance program;
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1 ‘‘(3) providing outpatient health services, food,

2 and case management;

3 ‘‘(4) providing assistance in obtaining perma4 nent housing, employment counseling, and nutri5 tional counseling;

6 ‘‘(5) providing security arrangements necessary

7 for the protection of residents of supportive housing

8 or emergency shelters and for homeless persons

9 using supportive housing facilities;

10 ‘‘(6) providing assistance in obtaining other

11 Federal, State, and local assistance available for

12 such residents and persons (including mental health

13 benefits, employment counseling, and medical assist14 ance, but not including major medical equipment);

15 ‘‘(7) employment assistance programs with an

16 emphasis on on-the-job training programs which re17 sult in improved, long-term employability and in18 creased earnings for homeless persons; and

19 ‘‘(8) providing other appropriate services.

20 ‘‘(d) PROVISION OF SERVICES.—Supportive services

21 provided with grant amounts under this title may be pro22 vided directly by the grantee, by the project sponsor ad23 ministering the permanent housing development assist24 ance or the facility or shelter, or by contract with other

25 public or private service providers. Such services provided
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1 in connection with a supportive housing facility may be

2 provided to homeless persons who do not reside in the sup3 portive housing, but only to the extent consistent with the

4 comprehensive housing affordability strategy under sec5 tion 105 of the Cranston-Gonzalez National Affordable

6 Housing Act for the applicable jurisdiction.

7 ‘‘SEC. 410. NONDISCRIMINATION IN PROGRAMS AND AC8 TIVITIES.

9 ‘‘No person in the United States shall, on the basis

10 of race, color, national origin, religion, or sex, be excluded

11 from participation in, be denied the benefits of, or be sub12 jected to discrimination under any program or activity

13 funded in whole or in part with funds made available

14 under this subtitle. Any prohibition against discrimination

15 on the basis of age under the Age Discrimination Act of

16 1975 or with respect to an otherwise qualified handi17 capped individual, as provided in section 504 of the Reha18 bilitation Act of 1973, shall also apply to any such pro19 gram or activity.

20 ‘‘Subtitle B—Permanent Housing

21 Development Activities

22 ‘‘SEC. 411. USE OF AMOUNTS AND GENERAL REQUIRE23 MENTS.

24 ‘‘(a) USE OF AMOUNTS FOR PERMANENT HOUSING

25 DEVELOPMENT.—
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1 ‘‘(1) AUTHORIZED USE.—A State, metropolitan

2 city, or urban county that receives a grant under

3 section 402(b)(2) from amounts allocated for use

4 under this subtitle may use grant amounts (and any

5 supplemental amounts provided under section 407)

6 only to carry out permanent housing development

7 activities within such State, metropolitan city, or

8 urban county. For purposes of this subtitle, the term

9 ‘permanent housing development activities’ means

10 activities to construct, substantially rehabilitate, or

11 acquire structures to provide permanent housing, in12 cluding the capitalization of a dedicated project ac13 count from which long-term assistance payments

14 (which may include operating costs or rental assist15 ance) can be made in order to facilitate such activi16 ties, and activities under section 441 of the this Act,

17 as in effect on October 31, 1998 (subject to the limi18 tation in section 406(b)(3) of this Act).

19 ‘‘(2) USE FOR SUPPORTIVE SERVICES PROHIB20 ITED.—Amounts allocated for use under this subtitle

21 may not be used for supportive services activities.

22 ‘‘(b) USE THROUGH NONPROFIT ORGANIZATIONS.—

23 ‘‘(1) IN GENERAL.—A grantee that receives

24 grant amounts for a fiscal year for use under this

25 subtitle may, pursuant to section 404, provide such
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1 amounts to units of general local government and

2 private nonprofit organizations for use in accordance

3 with this subtitle, except that the grantee shall en4 sure that more than 50 percent of the amounts re5 ceived by the grantee for the fiscal year are used

6 through private nonprofit organizations.

7 ‘‘(2) WAIVER OF USE OF NONPROFIT REQUIRE8 MENT.—The Secretary may waive the requirement

9 under paragraph (1) that a grantee ensure that

10 more than 50 percent of the amounts received by the

11 grantee for the fiscal year are used through private

12 nonprofit organizations if the Secretary determines

13 that there are not sufficient private nonprofit orga14 nizations available to the grantee to meet that re15 quirement.

16 ‘‘(c) ADMINISTRATIVE FEE.—To the extent provided

17 in section 408(g), grant amounts provided under this sub18 title may be used by the project sponsor providing such

19 assistance for costs of administering such assistance.

20 ‘‘(d) TARGETING POPULATIONS WITH SPECIAL

21 NEEDS.—To the maximum extent practicable, a grantee

22 shall provide for use of grant amounts made available

23 under this subtitle in a manner that provides permanent

24 housing for homeless persons with disabilities, homeless

25 persons with acquired immunodeficiency syndrome or re-
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1 lated diseases, homeless persons who have chronic prob2 lems with alcohol or drugs (or both), homeless families

3 with children, and veterans who are homeless.

4 ‘‘SEC. 412. PERMANENT HOUSING DEVELOPMENT.

5 ‘‘(a) IN GENERAL.—Housing shall be considered per6 manent housing for purposes of this title if the housing—

7 ‘‘(1) provides long-term housing for homeless

8 persons;

9 ‘‘(2) complies with any applicable State and

10 local housing codes, licensing requirements, or other

11 requirement in the jurisdiction in which the housing

12 is located, including any applicable State or local re13 quirements regarding the number of occupants in

14 such a facility; and

15 ‘‘(3) complies with the requirement under sec16 tion 409(a) regarding providing supportive services

17 for homeless persons.

18 ‘‘(b) CLARIFICATION.—Permanent housing may—

19 ‘‘(1) be restricted for occupancy by homeless

20 persons with disabilities;

21 ‘‘(2) consist of or contain full dwelling units or

22 dwelling units that do not contain bathrooms or

23 kitchen facilities; and

24 ‘‘(3) be provided in the form of rental housing,

25 cooperative housing, shared living arrangements, sin-
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1 gle family housing, or other types of housing ar2 rangements.

3 ‘‘Subtitle C—Flexible Block Grant

4 Homeless Assistance

5 ‘‘SEC. 421. ELIGIBLE ACTIVITIES.

6 ‘‘(a) IN GENERAL.—Grant amounts allocated for use

7 under this subtitle may be used only for carrying out the

8 following activities:

9 ‘‘(1) ACQUISITION AND REHABILITATION OF

10 SUPPORTIVE HOUSING.—For acquisition or rehabili11 tation of an existing structure (including a small

12 commercial property or office space) to provide sup13 portive housing other than emergency shelter or to

14 provide supportive services; the repayment of any

15 outstanding debt owed on a loan made to purchase

16 an existing structure for use as supportive housing

17 shall be considered to be a cost of acquisition under

18 this paragraph if the structure was not used as sup19 portive housing or to provide supportive services, be20 fore assistance is provided using grant amounts.

21 ‘‘(2) NEW CONSTRUCTION OF SUPPORTIVE

22 HOUSING.—For new construction of a structure to

23 be used as supportive housing.

24 ‘‘(3) LEASING OF SUPPORTIVE HOUSING.—For

25 leasing of an existing structure or structures, or por-
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1 tions thereof, to provide supportive housing or sup2 portive services during the period covered by the ap3 plication.

4 ‘‘(4) OPERATING COSTS FOR SUPPORTIVE

5 HOUSING.—For covering operating costs of support6 ive housing (which shall include capital costs for uti7 lizing any interactive computer or telephone services

8 and other electronic information networks and sys9 tems appropriate for assisting homeless families); ex10 cept that grant amounts provided under this subtitle

11 may not be used to cover more than 75 percent of

12 the annual operating costs of such housing.

13 ‘‘(5) HOMELESSNESS PREVENTION.—

14 ‘‘(A) IN GENERAL.—For activities designed

15 to help persons (including veterans who are at

16 risk of becoming homeless) and families avoid

17 becoming homeless, which shall include assist18 ance for making mortgage payments, rental

19 payments, and utility payments and any activi20 ties other than those found by the Secretary to

21 be inconsistent with the purposes of this Act.

22 ‘‘(B) PERSONS ELIGIBLE FOR ASSIST23 ANCE.—Assistance under this paragraph may

24 be provided only to very low-income families

25 who have received eviction (or mortgage delin-
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1 quency or foreclosure) notices or notices of ter2 mination of utility services and who—

3 ‘‘(i) are unable to make the required

4 payments due to a sudden reduction in in5 come;

6 ‘‘(ii) need such assistance to avoid

7 homelessness due to the eviction or termi8 nation of services; and

9 ‘‘(iii) have a reasonable prospect of

10 being able to resume payments within a

11 reasonable period of time.

12 ‘‘(C) LIMITATION.—Assistance under this

13 paragraph may be provided only if such assist14 ance will not supplant funding for preexisting

15 homelessness prevention activities from other

16 services.

17 ‘‘(6) PERMANENT HOUSING DEVELOPMENT AC18 TIVITIES.—For providing permanent housing devel19 opment activities as described in subtitle B.

20 ‘‘(7) EMERGENCY SHELTER.—For—

21 ‘‘(A) renovation, major rehabilitation, or

22 conversion of a building or buildings to be used

23 as emergency shelters;

24 ‘‘(B) covering costs of supportive services

25 in connection with an emergency shelter, if such
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1 services do not supplant any services provided

2 by the local government during any part of the

3 12-month period ending on the date of the com4 mencement of the operation of the emergency

5 shelter; and

6 ‘‘(C) covering costs relating to mainte7 nance, operation, insurance, utilities, and fur8 nishings for emergency shelters.

9 ‘‘(8) SUPPORTIVE SERVICES.—To the extent

10 provided in section 406, for covering costs of sup11 portive services provided to homeless persons in con12 nection with a permanent or supportive housing fa13 cility or otherwise.

14 ‘‘(9) TECHNICAL ASSISTANCE.—For technical

15 assistance in carrying out the purposes of this title,

16 except that the Secretary may provide such technical

17 assistance directly to any grantee, including non18 profit sponsors who are proposing project applica19 tions for populations with special needs.

20 ‘‘(b) USE FOR HOUSING ACTIVITIES.—Of the aggre21 gate of any grant amounts provided to a grantee for a

22 fiscal year for use under this subtitle and the supplemental

23 amounts provided for such fiscal year by the grantee in

24 accordance with section 407, the grantee shall ensure that

25 an amount that is not less than such grant amounts (less
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1 any amount used pursuant to section 408(g)) is used for

2 eligible activities described in paragraphs (1) through (6)

3 of subsection (a).

4 ‘‘SEC. 422. USE OF AMOUNTS THROUGH PRIVATE NON5 PROFIT PROVIDERS.

6 ‘‘(a) IN GENERAL.—In each fiscal year, each grantee

7 of amounts for use under this subtitle shall ensure that

8 more than 50 percent of the amounts received by the

9 grantee for such fiscal year are used for carrying out eligi10 ble activities under section 421 through project sponsors

11 that are private nonprofit organizations.

12 ‘‘(b) WAIVER.—The Secretary may waive the require13 ment under subsection (a) that a grantee ensure that more

14 than 50 percent of the amounts received by the grantee

15 for the fiscal year are used through private nonprofit orga16 nizations if the Secretary determines that there are not

17 sufficient private nonprofit organizations available to the

18 grantee to meet that requirement.

19 ‘‘SEC. 423. SUPPORTIVE HOUSING.

20 ‘‘(a) IN GENERAL.—Housing shall be considered sup21 portive housing for purposes of this subtitle if—

22 ‘‘(1) the housing complies with the requirement

23 under section 409(a) regarding providing supportive

24 services for homeless persons;
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1 ‘‘(2) the housing complies with any applicable

2 State and local housing codes and licensing require3 ments in the jurisdiction in which the housing is lo4 cated; and

5 ‘‘(3) the housing—

6 ‘‘(A) is transitional housing; or

7 ‘‘(B) is permanent supportive housing as

8 described in section 412.

9 ‘‘(b) TRANSITIONAL HOUSING.—For purposes of this

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

11 purpose of which is to facilitate the movement of homeless

12 persons and families to permanent housing within 24

13 months or such longer period as the Secretary determines

14 necessary. Assistance may be denied for housing based on

15 a violation of this subsection only if a substantial number

16 of homeless persons or families have remained in the hous17 ing longer than such period.

18 ‘‘(c) SINGLE ROOM OCCUPANCY DWELLINGS.—For

19 purposes of this section, a facility may provide supportive

20 housing or supportive services in dwelling units that do

21 not contain bathrooms or kitchen facilities and are appro22 priate for use as supportive housing or in facilities con23 taining some or all such dwelling units.
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1 ‘‘(d) SAFE HAVEN HOUSING.—For purposes of this

2 section, supportive housing may be a structure or a clearly

3 identifiable portion of a structure that—

4 ‘‘(1) provides housing and low-demand services

5 and referrals for homeless persons with serious men6 tal illness—

7 ‘‘(A) who are currently residing primarily

8 in places not designed for, or ordinarily used as,

9 regular sleeping accommodations for human

10 beings; and

11 ‘‘(B) who have been unwilling or unable to

12 participate in mental health or substance abuse

13 treatment programs or to receive other support14 ive services; except that a person whose sole im15 pairment is substance abuse shall not be consid16 ered an eligible person;

17 ‘‘(2) provides 24-hour residence for eligible indi18 viduals who may reside for an unspecified duration;

19 ‘‘(3) provides private or semiprivate accom20 modations;

21 ‘‘(4) may provide for the common use of kitch22 en facilities, dining rooms, and bathrooms;

23 ‘‘(5) may provide supportive services to eligible

24 persons who are not residents on a drop-in basis;

25 and
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1 ‘‘(6) provides occupancy limited to no more

2 than 25 persons.

3 ‘‘SEC. 424. EMERGENCY SHELTER.

4 ‘‘(a) IN GENERAL.—A facility shall be considered

5 emergency shelter for purposes of this subtitle if the facil6 ity is designed to provide overnight sleeping accommoda7 tions for homeless persons and complies with the require8 ments under this section. An emergency shelter may in9 clude appropriate eating and cooking accommodations.

10 ‘‘(b) REQUIREMENTS.—Grant amounts under this

11 subtitle may be used for eligible activities under section

12 421(a)(7) relating to emergency shelter only if—

13 ‘‘(1) the Secretary determines that—

14 ‘‘(A) use of such amounts is necessary to

15 meet the emergency shelter needs of the juris16 diction in which the facility is located; and

17 ‘‘(B) the use of such amounts for such ac18 tivities will not violate the prohibition under

19 section 408(f); and

20 ‘‘(2) the project sponsor agrees that it will—

21 ‘‘(A) in the case of assistance involving

22 major rehabilitation or conversion of a building,

23 maintain the building as a shelter for homeless

24 persons and families for not less than a 10-year

25 period unless, within such 10-year period, the
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1 need for maintaining the building as a full-time

2 shelter ceases to exist and the building is used

3 for the remainder of such period to carry out

4 other eligible activities under this subtitle;

5 ‘‘(B) in the case of assistance involving re6 habilitation (other than major rehabilitation or

7 conversion of a building), maintain the building

8 as a shelter for homeless persons and families

9 for not less than a 3-year period;

10 ‘‘(C) in the case of assistance involving

11 only activities described in subparagraphs (B)

12 and (C) of section 421(a)(7), provide services or

13 shelter to homeless persons and families at the

14 original site or structure or other sites or struc15 tures serving the same general population for

16 the period during which such assistance is pro17 vided;

18 ‘‘(D) comply with the standards of housing

19 quality applicable under section 408(h); and

20 ‘‘(E) assist homeless persons obtaining—

21 ‘‘(i) appropriate supportive services,

22 permanent housing, medical and mental

23 health treatment (including information

24 and counseling regarding the benefits and

25 availability of child immunization), coun-
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1 seling, supervision, veterans benefits, and

2 other services essential for achieving inde3 pendent living (including on-the-job train4 ing programs which provide an hourly sti5 pend of an amount that is not less than

6 minimum wage and which are likely to im7 prove the long-term employability and

8 earnings of homeless persons and reduce

9 their need for subsidized housing); and

10 ‘‘(ii) other Federal, State, local, and

11 private assistance available for homeless

12 persons.

13 ‘‘Subtitle D—Reporting,

14 Definitions, and Funding

15 ‘‘SEC. 431. PERFORMANCE REPORTS BY GRANTEES.

16 ‘‘(a) REQUIREMENT.—For each fiscal year, each

17 grantee under this title shall review and report, in a form

18 acceptable to the Secretary, on the progress it has made

19 during such fiscal year in carrying out the activities de20 scribed in the application resulting in such grant and the

21 relationship of such activities to the comprehensive hous22 ing affordability strategy under section 105 of the Cran23 ston-Gonzalez National Affordable Housing Act for the

24 applicable jurisdiction.
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1 ‘‘(b) CONTENT.—Each report under this section for

2 a fiscal year shall—

3 ‘‘(1) describe the use of grant amounts provided

4 to the grantee for such fiscal year;

5 ‘‘(2) to the extent practicable until the develop6 ment of a reasonable methodology by the Secretary

7 and the Interagency Council on the Homeless, de8 scribe the number of homeless persons and families,

9 including populations with special needs provided

10 shelter, housing, or assistance using such grant

11 amounts;

12 ‘‘(3) assess the relationship of such use to the

13 goals identified pursuant to section 105(b)(2) of the

14 Cranston-Gonzalez National Affordable Housing Act

15 in the comprehensive housing affordability strategy

16 for the applicable jurisdiction;

17 ‘‘(4) indicate the grantee’s programmatic ac18 complishments;

19 ‘‘(5) describe how the grantee would change its

20 programs as a result of its experiences; and

21 ‘‘(6) describe any delays that occurred in the

22 startup of programs and the reason for each delay.

23 ‘‘(c) SUBMISSION.—The Secretary shall establish

24 dates for submission of reports under this section and re25 view such reports and make such recommendations as the
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1 Secretary considers appropriate to carry out the purposes

2 of this title. The Secretary may withhold or reallocate

3 funds granted to a grantee if the Secretary finds that the

4 grantee has complied with applicable program require5 ments, but not substantially complied with the application

6 that the grantee submitted to obtain such funds.

7 ‘‘(d) PUBLIC AVAILABILITY.—

8 ‘‘(1) IN GENERAL.—A grantee preparing a re9 port under this section shall make the report pub10 licly available to the citizens in the jurisdiction of

11 the grantee in sufficient time to permit such citizens

12 to comment on such report prior to its submission

13 to the Secretary, and in such manner and at such

14 times as the grantee may determine. The report

15 shall include a summary of any such comments re16 ceived by the grantee regarding its program.

17 ‘‘(2) ELECTRONIC ACCESS.—A grantee may

18 comply with the requirement under paragraph (1) by

19 making the report available through interactive com20 puter or telephone services or other electronic infor21 mation networks and systems appropriate for mak22 ing such information widely publicly available. The

23 Secretary shall make each final report submitted

24 under this section publicly available through such a
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1 computer, telephone, or information service, net2 work, or system.

3 ‘‘(e) AUTHORITY OF SECRETARY.—The Secretary

4 shall establish procedures appropriate and practicable for

5 providing a fair hearing and timely resolution of citizen

6 complaints related to performance reports under this sec7 tion.

8 ‘‘SEC. 432. ANNUAL REPORT BY SECRETARY.

9 ‘‘The Secretary shall include in the annual report,

10 under section 8 of the Department of Housing and Urban

11 Development Act, information summarizing the activities

12 carried out under this title and setting forth the findings,

13 conclusions, and recommendations of the Secretary as a

14 result of the activities. Such information shall be made

15 publicly available through interactive computer or tele16 phone services or other electronic information networks

17 and systems appropriate for making such information

18 widely available to the public.

19 ‘‘SEC. 433. DEFINITIONS.

20 ‘‘For purposes of this title, the following definitions

21 shall apply:

22 ‘‘(1) APPLICANT.—The term ‘applicant’ means

23 an eligible grantee that submits an application under

24 section 408(a) for a grant under this title.
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1 ‘‘(2) ELIGIBLE GRANTEE.—The term ‘eligible

2 grantee’ is defined in section 403.

3 ‘‘(3) FACILITY.—The term ‘facility’ means a

4 structure or structures (or a portion of such struc5 ture or structures) that are assisted through eligible

6 activities under subtitle C with grant amounts under

7 this title (or for which the Secretary provides tech8 nical assistance under section 421(a)(9)).

9 ‘‘(4) GRANTEE.—The term ‘grantee’ means an

10 applicant that receives a grant under this title.

11 ‘‘(5) INSULAR AREA.—The term ‘insular area’

12 means each of the Virgin Islands, Guam, American

13 Samoa, the Northern Mariana Islands, and any

14 other territory or possession of the United States.

15 ‘‘(6) METROPOLITAN CITY, CONSORTIUM.—The

16 term ‘metropolitan city’ has the meaning given that

17 term in section 102 of the Housing and Community

18 Development Act of 1974. A consortium of units of

19 general local governments shall be considered to be

20 a metropolitan city—

21 ‘‘(A) for amounts allocated in accordance

22 with section 406(c)(3), only if the consortium

23 received funds for fiscal year 1998 or 1999

24 under subtitle B of this title, as then in effect;

25 and
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1 ‘‘(B) for amounts allocated in accordance

2 with any formula developed pursuant to section

3 406(c)(5), only if the Secretary determines that

4 the consortium—

5 ‘‘(i)(I) is comprised of units of general

6 local government which are geographically

7 contiguous (which may include all units of

8 general local government within a State);

9 ‘‘(II) has sufficient authority and ad10 ministrative capability to carry out the

11 purposes of this title on behalf of its mem12 ber jurisdictions; and

13 ‘‘(III) will, according to a written cer14 tification by the State (or States, if the

15 consortium includes jurisdictions in more

16 than one State) in which its member juris17 dictions are located, direct its activities to

18 alleviation of homelessness problems within

19 the State (or States); or

20 ‘‘(ii) received funds for fiscal year

21 1998 or 1999 under subtitle B of this title,

22 as then in effect.

23 ‘‘(7) NONENTITLEMENT AREA.—The term ‘non24 entitlement area’ means an area that is not a metro-
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1 politan city or part of an urban county and does not

2 include Indian tribes or insular areas.

3 ‘‘(8) OPERATING COSTS.—The term ‘operating

4 costs’ means expenses incurred by a grantee operat5 ing supportive housing assisted with grant amounts

6 under this title, with respect to—

7 ‘‘(A) the administration, maintenance, re8 pair, and security of such housing;

9 ‘‘(B) utilities, fuel, furnishings, and equip10 ment for such housing; and

11 ‘‘(C) the conducting of the assessment

12 under section 408(b)(2).

13 ‘‘(9) OUTPATIENT HEALTH SERVICES.—The

14 term ‘outpatient health services’ means outpatient

15 health care, outpatient mental health services, out16 patient substance abuse services, and case manage17 ment.

18 ‘‘(10) PERSON WITH DISABILITIES.—The term

19 ‘person with disabilities’ means a person who—

20 ‘‘(A) has a disability as defined in section

21 223 of the Social Security Act;

22 ‘‘(B) is determined to have, pursuant to

23 regulations issued by the Secretary, a physical,

24 mental, or emotional impairment which (i) is

25 expected to be of long, continued, and indefinite
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1 duration, (ii) substantially impedes an individ2 ual’s ability to live independently, and (iii) is

3 of such a nature that such ability could be im4 proved by more suitable housing conditions; or

5 ‘‘(C) has a developmental disability as de6 fined in section 102 of the Developmental Dis7 abilities Assistance and Bill of Rights Act.

8 Such term shall not exclude persons who have the

9 disease of acquired immunodeficiency syndrome or

10 any conditions arising from the etiologic agent for

11 acquired immunodeficiency syndrome.

12 ‘‘(11) PRIVATE NONPROFIT ORGANIZATION.—

13 The term ‘private nonprofit organization’ means any

14 private organization that—

15 ‘‘(A) is organized under State or local

16 laws;

17 ‘‘(B) has no part of its net earnings inur18 ing to the benefit of any member, founder, con19 tributor, or individual;

20 ‘‘(C) complies with standards of financial

21 accountability acceptable to the Secretary; and

22 ‘‘(D) has among its purposes significant

23 activities related to the provision of—
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1 ‘‘(i) decent housing that is affordable

2 to low-income and moderate-income fami3 lies; or

4 ‘‘(ii) shelter, housing, or services for

5 homeless persons or families or for persons

6 or families at risk of becoming homeless.

7 ‘‘(12) PROJECT SPONSOR.—The term ‘project

8 sponsor’ means an entity that uses grant amounts

9 under this title to carry out a permanent housing

10 development program under subtitle B or eligible ac11 tivities under subtitle C. The term includes a grant12 ee carrying out such a program or activities.

13 ‘‘(13) SECRETARY.—The term ‘Secretary’

14 means the Secretary of Housing and Urban Develop15 ment.

16 ‘‘(14) STATE.—The term ‘State’ means each of

17 the several States and the Commonwealth of Puerto

18 Rico.

19 ‘‘(15) SUPPORTIVE HOUSING.—The term ‘sup20 portive housing’ means a facility that meets the re21 quirements of section 423.

22 ‘‘(16) SUPPORTIVE SERVICES.—The term ‘sup23 portive services’ means services under section 409.

24 ‘‘(17) URBAN COUNTY, UNIT OF GENERAL

25 LOCAL GOVERNMENT.—The terms ‘urban county’
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1 and ‘unit of general local government’ have the

2 meanings given the terms in section 102 of the

3 Housing and Community Development Act of 1974.

4 ‘‘(18) VERY LOW-INCOME FAMILIES.—The term

5 ‘very low-income families’ has the same meaning

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

7 States Housing Act of 1937 (or any other subse8 quent provision of Federal law defining such term

9 for purposes of eligibility for, or rental charges in,

10 public housing).

11 ‘‘SEC. 434. REGULATIONS.

12 ‘‘(a) ISSUANCE.—Not later than the expiration of the

13 30-day period beginning upon the date of the enactment

14 of the Homeless Housing Programs Consolidation and

15 Flexibility Act, the Secretary shall issue interim regula16 tions to carry out this title. The Secretary shall issue final

17 regulations to carry out this title after notice and oppor18 tunity for public comment regarding the interim regula19 tions in accordance with the procedure under section 553

20 of title 5, United States Code, applicable to substantive

21 rules (notwithstanding subsections (a)(2), (b)(B), and

22 (d)(3) of such section), but not later than the expiration

23 of the 90-day period beginning upon the date of the enact24 ment of the Homeless Housing Programs Consolidation

25 and Flexibility Act.
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1 ‘‘(b) RULE OF CONSTRUCTION.—Any failure by the

2 Secretary to issue any regulations under this section shall

3 not affect the effectiveness of any provision of this title

4 pursuant to section 4(b) of the Homeless Housing Pro5 grams Consolidation and Flexibility Act.

6 ‘‘SEC. 435. AUTHORIZATION OF APPROPRIATIONS.

7 ‘‘(a) IN GENERAL.—There are authorized to be ap8 propriated for grants under this title $1,020,000,000 for

9 fiscal year 2000 and such sums as may be necessary for

10 each of fiscal years 2001, 2002, 2003, and 2004.

11 ‘‘(b) PROHIBITION ON SET ASIDES.—Notwithstand12 ing any other provision of law, any attempt to put any

13 restriction on the use of funds appropriated for this title

14 (such as for use in special projects) shall be considered

15 an appropriation without authorization and shall be with16 out force or effect.’’.

17 (b) APPLICABILITY.—The provisions of the amend18 ment made by subsection (a) shall apply with respect to

19 fiscal year 2000 and each fiscal year thereafter.

20 SEC. 6. INTERAGENCY COUNCIL ON THE HOMELESS.

21 (a) CHAIRPERSON AND VICE CHAIRPERSON.—Sec22 tion 202(b) of the Stewart B. McKinney Homeless Assist23 ance Act (42 U.S.C. 11312(b)) is amended to read as fol24 lows:

25 ‘‘(b) CHAIRPERSON AND VICE CHAIRPERSON.—
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1 ‘‘(1) CHAIRPERSON.—The Council shall elect a

2 Chairperson from among its members, who shall

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

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

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

6 may not be elected to serve as Chairperson for the

7 succeeding term. The preceding sentence shall not

8 apply to any member serving as Chairperson on the

9 date of the enactment of the Homeless Housing Pro10 grams Consolidation and Flexibility Act.

11 ‘‘(2) VICE CHAIRPERSON.—The Vice Chair12 person of the Council shall have a term of 2 years

13 and shall be—

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

15 Development, if such Secretary is not elected as

16 the Chairperson of the Council; or

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

18 members, if the Secretary of Housing and

19 Urban Development is elected as the Chair20 person of the Council.

21 ‘‘(3) Notwithstanding paragraphs (1) and (2),

22 the first Chairperson elected after the date of the

23 enactment of the Homeless Housing Programs Con24 solidation and Flexibility Act may not be the Sec25 retary of Housing and Urban Development.’’.
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1 (b) AUTHORIZATION OF APPROPRIATIONS.—Section

2 208 of the Stewart B. McKinney Homeless Assistance Act

3 (42 U.S.C. 11318) is amended to read as follows:

4 ‘‘SEC. 208. AUTHORIZATION OF APPROPRIATIONS.

5 ‘‘Of any amounts made available in any fiscal year

6 to carry out this Act, 0.0012 of such amounts shall be

7 available to carry out this title.’’.

8 (c) TERMINATION.—Section 209 of the Stewart B.

9 McKinney Homeless Assistance Act (42 U.S.C. 11319) is

10 amended by striking ‘‘October 1, 1994’’ and inserting

11 ‘‘October 1, 2004’’.

12 (d) REPEAL.—Section 210 of the Stewart B. McKin13 ney Homeless Assistance Act (42 U.S.C. 11320) is hereby

14 repealed.

15 SEC. 7. INVENTORY OF FEDERAL FACILITIES SUITABLE

16 FOR OVERNIGHT SHELTER FOR HOMELESS

17 PERSONS.

18 (a) IDENTIFICATION.—Not later than 30 days after

19 the date of the enactment of this Act, the Secretary of

20 Housing and Urban Development shall request, from the

21 head of each executive agency, information that identifies

22 each covered facility (or any parts thereof) under the con23 trol of the executive agency that is suitable for use as tem24 porary overnight shelter for homeless persons.
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1 (b) CONSULTATION.—At the request of the head of

2 any executive agency, the Secretary shall consult with such

3 agency head regarding whether facilities of the agency, or

4 a particular facility or facilities, are covered facilities or

5 are suitable for use as temporary overnight shelter for

6 homeless persons.

7 (c) COMPILATION AND PUBLICATION.—Not later

8 than 60 days after the date of the enactment of this Act,

9 the Secretary shall compile the information submitted pur10 suant to subsection (a) and cause the compiled informa11 tion to be published in the Federal Register a list of all

12 covered facilities identified as suitable for use as tem13 porary overnight shelter for homeless persons.

14 (d) DEFINITIONS.—For purposes of this section, the

15 following definitions shall apply:

16 (1) COVERED FACILITY.—The term ‘‘covered

17 facility’’ means any building, structure, land, or

18 other real property that, in the determination of the

19 head of the Federal agency having control of the

20 property, using standards that shall be established

21 by the Secretary, reasonably could be made available

22 for the use described in subsection (a) without sub23 stantial conflict with any other existing, expected, or

24 potential use of the property to carry out the mis25 sion of the agency.
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1 (2) EXECUTIVE AGENCY.—The term ‘‘executive

2 agency’’ has the meaning given such term in section

3 105 of title 5, United States Code.

4 (3) HOMELESS PERSON.—The term ‘‘homeless

5 person’’ has the meaning given such term in section

6 102 of the Stewart B. McKinney Homeless Assist7 ance Act (42 U.S.C. 11302).

8 (4) SECRETARY.—The term ‘‘Secretary’’ means

9 the Secretary of Housing and Urban Development.

10 SEC. 8. REPEALS AND CONFORMING AMENDMENTS.

11 (a) REPEALS.—The following provisions of law are

12 hereby repealed:

13 (1) INNOVATIVE HOMELESS INITIATIVES DEM14 ONSTRATION.—Section 2 of the HUD Demonstra15 tion Act of 1993 (42 U.S.C. 11301 note).

16 (2) FHA SINGLE FAMILY PROPERTY DISPOSI17 TION FOR HOMELESS USE.—Section 1407 of the

18 Housing and Community Development Act of 1992

19 (Public Law 102–550; 106 Stat. 4034).

20 (3) HOUSING FOR RURAL HOMELESS AND MI21 GRANT FARMWORKERS.—Subsection (k) of section

22 516 of the Housing Act of 1949 (42 U.S.C.

23 1486(k)).

24 (b) TERMINATION OF SRO ASSISTANCE PROGRAM.—

25 Section 8(e)(2) of the United States Housing Act of 1937
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1 shall not be in effect on or after the date of the enactment

2 of this Act as provided in subsections (a)(4) and (b)(2)

3 of section 289 of the Cranston-Gonzalez National Afford4 able Housing Act (42 U.S.C. 12839).

5 (c) CONFORMING AMENDMENTS TO YOUTHBUILD

6 PROGRAM.—Title IV of the Cranston-Gonzalez National

7 Affordable Housing Act is amended—

8 (1) in section 455(b) (42 U.S.C. 12899d(b)) by

9 inserting ‘‘subtitle C of’’ before ‘‘title IV’’; and

10 (2) in section 457(4) (42 U.S.C. 12899f(4)), by

11 striking ‘‘section 103’’ and inserting ‘‘section 102’’.

12 (d) CLERICAL AMENDMENT.—The table of contents

13 in section 101(b) of the Stewart B. McKinney Homeless

14 Assistance Act is amended by striking the items relating

15 to titles I, II, III, and IV (including the items relating

16 to the subtitles, parts, and sections of such titles) and in17 serting the following new items:

‘‘TITLE I—GENERAL PROVISIONS

‘‘Sec. 101. Short title and table of contents.

‘‘Sec. 102. General definition of homeless individual.

‘‘Sec. 103. Funding availability and limitations.

‘‘Sec. 104. Annual program summary by Comptroller General.

‘‘TITLE II—INTERAGENCY COUNCIL ON THE HOMELESS

‘‘Sec. 201. Establishment.

‘‘Sec. 202. Membership.

‘‘Sec. 203. Functions.

‘‘Sec. 204. Director and staff.

‘‘Sec. 205. Powers.

‘‘Sec. 206. Transfer of functions.

‘‘Sec. 207. Definitions.

‘‘Sec. 208. Authorization of appropriations.

‘‘Sec. 209. Termination.
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‘‘TITLE III—FEDERAL EMERGENCY MANAGEMENT FOOD AND

SHELTER PROGRAM

‘‘Subtitle A—Administrative Provisions

‘‘Sec. 301. Emergency Food and Shelter Program National Board.

‘‘Sec. 302. Local boards.

‘‘Sec. 303. Role of Federal Emergency Management Agency.

‘‘Sec. 304. Records and audit of National Board and grantees of assistance.

‘‘Sec. 305. Annual report.

‘‘Subtitle B—Emergency Food and Shelter Grants

‘‘Sec. 311. Grants by the Director.

‘‘Sec. 312. Retention of interest earned.

‘‘Sec. 313. Purposes of grants.

‘‘Sec. 314. Limitation on certain costs.

‘‘Sec. 315. Disbursement of funds.

‘‘Sec. 316. Program guidelines.

‘‘Subtitle C—General Provisions

‘‘Sec. 321. Definitions.

‘‘Sec. 322. Authorization of appropriations.

‘‘TITLE IV—PERMANENT HOUSING DEVELOPMENT AND

FLEXIBLE BLOCK GRANT HOMELESS ASSISTANCE PROGRAM

‘‘Subtitle A—General Provisions

‘‘Sec. 401. Purpose; performance measures.

‘‘Sec. 402. Grant authority.

‘‘Sec. 403. Eligible grantees.

‘‘Sec. 404. Use of project sponsors.

‘‘Sec. 405. Comprehensive housing affordability strategy compliance.

‘‘Sec. 406. Allocation and availability of amounts.

‘‘Sec. 407. Matching funds requirement.

‘‘Sec. 408. Program requirements.

‘‘Sec. 409. Supportive services.

‘‘Sec. 410. Nondiscrimination in programs and activities.

‘‘Subtitle B—Permanent Housing Development Activities

‘‘Sec. 411. Use of amounts and general requirements.

‘‘Sec. 412. Permanent housing development.

‘‘Subtitle C—Flexible Block Grant Homeless Assistance

‘‘Sec. 421. Eligible activities.

‘‘Sec. 422. Use of amounts through private nonprofit providers.

‘‘Sec. 423. Supportive housing.

‘‘Sec. 424. Emergency shelter.

‘‘Subtitle D—Reporting, Definitions, and Funding

‘‘Sec. 431. Performance reports by grantees.

‘‘Sec. 432. Annual report by Secretary.

‘‘Sec. 433. Definitions.
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‘‘Sec. 434. Regulations.

‘‘Sec. 435. Authorization of appropriations.’’.

1 SEC. 9. SAVINGS PROVISION.

2 Nothing in this Act may be construed to affect the

3 validity of any right, duty, or obligation of the United

4 States or other person arising under or pursuant to any

5 commitment or agreement entered into before the date of

6 the enactment of this Act under any provision of law re7 pealed or amended by this Act.

8 SEC. 10. TREATMENT OF PREVIOUSLY OBLIGATED

9 AMOUNTS.

10 Notwithstanding the amendment or repeal of any

11 provision of law by this Act, any amounts appropriated

12 to carry out the provisions so amended or repealed that

13 are obligated before the date of the enactment of this Act

14 shall be used in the manner provided, and subject to any

15 requirements and agreements entered into, under such

16 provisions as such provisions were in effect immediately

17 before such date of enactment.

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