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[Congressional Bills 103th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3768 Introduced in House (IH)]

103d CONGRESS
  2d Session
                                H. R. 3768

To transfer the emergency food and shelter program for the homeless of 
 the Federal Emergency Management Agency to the Department of Housing 
 and Urban Development and to provide funding to States, metropolitan 
cities, urban counties, and Indian tribes on a formula grant basis for 
   housing and related activities for the homeless in order to give 
 grantees maximum flexibility to meet the needs of the homeless and to 
   improve the efficiency and effectiveness of the homeless housing 
 assistance programs under the Stewart B. McKinney Homeless Assistance 
                      Act, and for other purposes.

_______________________________________________________________________

                    IN THE HOUSE OF REPRESENTATIVES

                            February 2, 1994

Mrs. Roukema (for herself and Mr. Ridge) introduced the following bill; 
   which was referred to the Committee on Banking, Finance and Urban 
                                Affairs

_______________________________________________________________________

                                 A BILL

 
To transfer the emergency food and shelter program for the homeless of 
 the Federal Emergency Management Agency to the Department of Housing 
 and Urban Development and to provide funding to States, metropolitan 
cities, urban counties, and Indian tribes on a formula grant basis for 
   housing and related activities for the homeless in order to give 
 grantees maximum flexibility to meet the needs of the homeless and to 
   improve the efficiency and effectiveness of the homeless housing 
 assistance programs under the Stewart B. McKinney Homeless Assistance 
                      Act, and for other purposes.

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Stewart B. 
McKinney Homeless Assistance and Prevention Formula Grant Amendments 
Act of 1994''.
    (b) Table of Contents.--

Sec. 1. Short title and table of contents.
TITLE I--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT EMERGENCY FOOD AND 
                            SHELTER PROGRAM

Sec. 101. Transfer of responsibilities regarding emergency food and 
                            shelter program from FEMA to HUD.
Sec. 102. Eligible grant activities.
Sec. 103. Authorization of appropriations.
Sec. 104. Clerical amendments.
  TITLE II--HOMELESS HOUSING ASSISTANCE AND PREVENTION FORMULA GRANT 
                                PROGRAM

Sec. 201. Homeless housing assistance and prevention formula grants.
Sec. 202. Transition provisions.
Sec. 203. Conforming amendments.

TITLE I--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT EMERGENCY FOOD AND 
                            SHELTER PROGRAM

SEC. 101. TRANSFER OF RESPONSIBILITIES REGARDING EMERGENCY FOOD AND 
              SHELTER PROGRAM FROM FEMA TO HUD.

    (a) In General.--Title III of the Stewart B. McKinney Homeless 
Assistance Act (42 U.S.C. 11331 et seq.) is amended--
            (1) in section 301(a)--
                    (A) by striking ``Director of the Federal Emergency 
                Management Agency'' and inserting ``Secretary of 
                Housing and Urban Development''; and
                    (B) in subsection (b), by striking the second 
                sentence;
            (2) in section 303--
                    (A) in the section heading, by striking ``federal 
                emergency management agency'' and inserting 
                ``department of housing and urban development''; and
                    (B) in subsection (b)(1), by striking ``Federal 
                Emergency Management Agency'' and inserting 
                ``Department of Housing and Urban Development'';
            (3) in the heading for section 311, by striking ``the 
        director'' and inserting ``secretary'';
            (4) in section 321--
                    (A) by striking paragraph (1);
                    (B) by redesignating paragraphs (2) through (6) as 
                paragraphs (1) through (5), respectively; and
                    (C) by inserting before paragraph (7) the following 
                new paragraph:
            ``(6) The term `Secretary' means the Secretary of Housing 
        and Urban Development.''; and
            (5) by striking ``Director'' and inserting ``Secretary'' in 
        each of the following places:
                    (A) The first sentence of section 301(b).
                    (B) Section 301(c).
                    (C) Section 303(a).
                    (D) The matter in section 303(b) that precedes 
                paragraph (1).
                    (E) Section 311.
    (b) Clerical Amendment.--The heading for title III of the Stewart 
B. McKinney Homeless Assistance Act (42 U.S.C. 11331 et seq.) is 
amended to read as follows:

``TITLE III--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT EMERGENCY FOOD 
                         AND SHELTER PROGRAM''.

    (c) Effective Date.--The amendments in subsections (a) and (b) 
shall be made and shall take effect on October 1, 1994.

SEC. 102. ELIGIBLE GRANT ACTIVITIES.

    Section 313(a) of the Stewart B. McKinney Homeless Assistance Act 
(42 U.S.C. 11343(a) is amended--
            (1) in paragraph (1), by striking ``to permanent homes, and 
        attention'' and inserting the following: ``(including safe 
        haven facilities) to more permanent housing, and special 
        attention paid'';
            (2) by striking paragraph (2); and
            (3) by redesignating paragraph (3) as paragraph (2).

SEC. 103. AUTHORIZATION OF APPROPRIATIONS.

    Section 322 of the Stewart B. McKinney Homeless Assistance Act (42 
U.S.C. 11352) is amended to read as follows:

``SEC. 322. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this title 
$50,000,000 for each of fiscal years 1995 and 1996.''.

SEC. 104. CLERICAL AMENDMENTS.

    (a) In General.--The table of contents in section 101(b) of the 
Stewart B. McKinney Homeless Assistance Act is amended--
            (1) by striking the item relating to the heading for title 
        III and inserting the following new item:

``TITLE III--DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT EMERGENCY FOOD 
                         AND SHELTER PROGRAM'';

            (2) by striking the item relating to section 303 and 
        inserting the following new item:

``Sec. 303. Role of Department of Housing and Urban Development.'';
        and
            (3) by striking the item relating to section 311 and 
        inserting the following new item:

``Sec. 311. Grants by Secretary.''.
    (b) Effective Date.--The amendments in subsection (a) shall be made 
and shall take effect on October 1, 1994.

  TITLE II--HOMELESS HOUSING ASSISTANCE AND PREVENTION FORMULA GRANT 
                                PROGRAM

SEC. 201. HOMELESS HOUSING ASSISTANCE AND PREVENTION FORMULA GRANTS.

    (a) Grant Program.--Title IV of the Stewart B. McKinney Homeless 
Assistance Act (42 U.S.C. 11361 et seq.) is amended by--
            (1) by striking subtitles A, B, and C; and
            (2) by inserting before subtitle D the following new 
        subtitle:

``Subtitle A--Homeless Housing Assistance and Prevention Formula Grant 
                                Program

                    ``CHAPTER 1--GENERAL PROVISIONS

``SEC. 401. STATEMENT OF PURPOSE.

    ``In General.--The purpose of this subtitle is to expand the 
Federal commitment to alleviate homelessness in this Nation by 
providing States and localities with the resources--
            ``(1) to help very low-income persons and families avoid 
        becoming homeless;
            ``(2) to meet the emergency shelter needs of homeless 
        persons and families;
            ``(3) to provide supportive housing to facilitate the 
        movement of homeless persons and families to independent 
        living;
            ``(4) to provide specialized housing for homeless persons 
        who require a supportive living environment;
            ``(5) to provide supportive services to help homeless 
        persons and families lead independent and dignified lives; and
            ``(6) to implement innovative projects and activities that 
        provide for a continuum of care for homeless persons.

``SEC. 402. DEFINITIONS.

    ``For purposes of this subtitle, the following definitions shall 
apply:
            ``(1) The term `assistance' means noninterest bearing 
        advances to assist the acquisition, lease, renovation, 
        substantial rehabilitation, operation, or conversion of 
        facilities to assist the homeless, grants for moderate 
        rehabilitation, grants for other purposes, and other assistance 
        made eligible under chapter 2.
            ``(2) The term `disability' means--
                    ``(A) a disability as defined in section 223 of the 
                Social Security Act;
                    ``(B) to be determined to have, pursuant to 
                regulations issued by the Secretary, a physical, 
                mental, or emotional impairment which (i) is expected 
                to be of long-continued and indefinite duration, (ii) 
                substantially impedes an individual's ability to live 
                independently, and (iii) of such a nature that such 
                ability could be improved by more suitable housing 
                conditions;
                    ``(C) a developmental disability as defined in 
                section 102 of the Developmental Disabilities 
                Assistance and Bill of Rights Act; or
                    ``(D) the disease of acquired immunodeficiency 
                syndrome or any conditions arising from the etiologic 
                agency for acquired immunodeficiency syndrome.
        Subparagraph (D) shall not be construed to limit eligibility 
        under subparagraphs (A) through (C) or the provisions referred 
        to in subparagraphs (A) through (C).
            ``(3) The term `emergency activities' means--
                    ``(A) activities that help very low-income families 
                and persons avoid becoming homeless in accordance with 
                section 421; and
                    ``(B) supportive services that are provided in an 
                emergency shelter developed in accordance with section 
                422.
            ``(4) The term `grantee' means a State, metropolitan city, 
        urban county, unit of general local government, Indian tribe, 
        or consortium eligible to receive grants under section 
        404(b)(2), that receives grants from the Secretary under 
        section 403(a).
            ``(5) The term `Indian tribe' has the meaning given such 
        term in section 102 of the Housing and Community Development 
        Act of 1974.
            ``(6) The term `locality' means the geographical area 
        within the jurisdiction of a local government.
            ``(7) The term `metropolitan city' has the meaning given 
        the term under section 102 of the Housing and Community 
        Development Act of 1974.
            ``(8) The term `operating costs' means expenses incurred by 
        a project sponsor operating any housing assisted under this 
        subtitle with respect to the administration, maintenance, 
        repair, and security of such housing and utilities, fuels, 
        furnishings, and equipment for such housing. The term includes 
        expenses incurred by a project sponsor operating supportive 
        housing under this subtitle with respect to the conducting of 
        the assessment required by section 423(e)(1)(B) and the 
        provision of supportive services to the residents of such 
        housing.
            ``(9) The term `outpatient health services' means 
        outpatient health care, outpatient mental health services, 
        outpatient substance abuse services, and case management 
        services. The term includes child immunization.
            ``(10) The term `private nonprofit organization' means a 
        secular or religious organization described in section 501(c) 
        of the Internal Revenue Code of 1986 that is exempt from 
        taxation under subtitle A of such Code, has an accounting 
        system and a voluntary board, and does not discriminate in the 
        provision of assistance.
            ``(11) The term `project' means a structure or a portion of 
        a structure that is acquired or rehabilitated with assistance 
        provided under this subtitle or with respect to which the 
        Secretary provides technical assistance or annual payments for 
        operating costs.
            ``(12) The term `project sponsor' means any governmental or 
        private nonprofit organization that receives assistance from a 
        grantee under section 403(a), is approved by the grantee as to 
        financial responsibility, and is directly responsible for the 
        administration of assistance provided under this subtitle. Each 
        project sponsor shall act as the fiscal agent of the Secretary 
        with respect to assistance provided to such project sponsor 
        under this subtitle.
            ``(13) The term `Secretary' means the Secretary of Housing 
        and Urban Development.
            ``(14) The term `State' means the States of the United 
        States, the District of Columbia, and the Commonwealth of 
        Puerto Rico, or any agency or instrumentality thereof that is 
        established pursuant to legislation and designated by the chief 
        executive to act on behalf of the jurisdiction with regard to 
        provisions of this Act.
            ``(15) The term `supportive services' means assistance 
        provided in connection with a project that addresses the 
        special needs of individuals (such as homeless persons with 
        disabilities and homeless families with children) intended to 
        be served by the project. Supportive services may include such 
        activities as (A) establishing and operating a child care 
        services program for homeless families, (B) establishing and 
        operating an employment assistance program, (C) providing 
        outpatient health services, food, and case management, (D) 
        providing assistance in obtaining permanent housing, employment 
        counseling, and nutritional counseling, (E) providing security 
        arrangements necessary for the protection of residents of 
        projects and for homeless persons using the project, (F) 
        providing assistance in obtaining other Federal, State, and 
        local assistance available for such residents (including mental 
        health benefits, employment counseling, and medical assistance, 
        but not including major medical equipment), and (G) providing 
        other appropriate services.
            ``(16) The term `unit of general local government' means 
        any city, town, township, county, parish, village, or other 
        general purpose political subdivision of a State; Guam, the 
        Commonwealth of the Northern Mariana Islands, the Virgin 
        Islands, American Samoa, or a general purpose political 
        subdivision thereof; and the Trust Territory of the Pacific 
        Islands and any other possession of the United States.
            ``(17) The term `urban county' has the meaning given the 
        term under section 102 of the Housing and Community Development 
        Act of 1974.
            ``(18) The term `very low-income persons and families' 
        means persons and families that have incomes not exceeding 50 
        percent of the median income for the area, as determined and 
        adjusted by the Secretary under section 3(b)(2) of the United 
        States Housing Act of 1937.

``SEC. 403. GENERAL AUTHORITY.

    ``(a) Grants for Homeless Housing Assistance.--
            ``(1) Authority and eligibility.--The Secretary of Housing 
        and Urban Development shall, to the extent that amounts are 
        approved in appropriation Acts pursuant to section 408, make 
        grants to States and metropolitan cities and urban counties to 
        carry out activities under this subtitle designed to meet the 
        emergency and supportive housing needs of the homeless, and 
        help very low-income families and persons avoid becoming 
        homeless. A jurisdiction shall be eligible to receive a grant 
        under this subtitle for a fiscal year only if--
                    ``(A) in the case of any jurisdiction that has been 
                designated as a participating jurisdiction for purposes 
                of titles I and II of the Cranston-Gonzalez National 
                Affordable Housing Act, the jurisdiction has complied 
                with the requirements under section 105 of such Act for 
                receipt of direct assistance from the Secretary for the 
                year; or
                    ``(B) in the case of any jurisdiction that is not 
                so designated, the jurisdiction submits to the 
                Secretary any information and plans described in 
                section 105(b) of such Act for the year that the 
                Secretary considers appropriate for purposes of this 
                subtitle, and the Secretary approves such information 
                and plans, in accordance with procedures as the 
                Secretary shall establish.
            ``(2) Contracts with project sponsors.--A grantee shall 
        carry out activities authorized under this subsection through 
        contracts with project sponsors, except that a grantee that is 
        a State shall coordinate with and obtain the approval of the 
        unit of general local government or any agencies, 
        organizations, or contractors of the unit, or other entities, 
        carrying out local homeless assistance programs for the 
        locality in which a project is to be located before entering 
        into such contracts.
    ``(b) Use of Assistance.--
            ``(1) Approved activities.--A grantee may use grants only 
        for approved activities established by the Secretary. Approved 
        activities shall include--
                    ``(A) the provision of assistance to help very low-
                income persons and families avoid becoming homeless 
                under section 421;
                    ``(B) the development of emergency shelters for the 
                homeless under section 422;
                    ``(C) the development of supportive housing for 
                homeless individuals under section 423; and
                    ``(D) such other activities that the Secretary 
                develops in cooperation with grantees under section 
                424.
            ``(2) Standards and guidelines.--The Secretary shall 
        establish standards and guidelines for approved activities 
        under paragraph (1). The Secretary shall permit grantees to 
        refine and adapt such standards and guidelines for individual 
        projects, where such refinements and adaptations are made 
        necessary by local circumstances.
            ``(3) Limit on use for emergency shelter.--A grantee may 
        use not more than 25 percent of the grants allocated under this 
        subsection for the construction, acquisition, rehabilitation, 
        or lease of emergency shelters, except that the Secretary may 
        approve a higher limitation for a grantee if the grantee 
        demonstrates that other approved activities under this 
        subsection are already being carried out in the jurisdiction 
        with resources not provided under this subtitle.
            ``(4) Provision of supportive services.--All or part of any 
        supportive services provided under this subtitle may be 
        provided directly by the project sponsor or by arrangements 
        with other public or private service providers.

``SEC. 404. ALLOCATION AND DISTRIBUTION OF FUNDS.

    ``(a) In General.--
            ``(1) Allocation percentages.--After reserving amounts 
        under paragraph (2) for Indian tribes, the Secretary shall 
        allocate 80 percent of the amount of assistance available under 
        this subtitle to metropolitan cities and urban counties and 20 
        percent of such amount to States, in accordance with this 
        section.
            ``(2) Indian tribe allocation.--For each fiscal year, of 
        the amount approved in appropriation Acts to carry out this 
        subtitle, the Secretary shall reserve for grants to Indian 
        tribes 1 percent of the amount appropriated. The Secretary 
        shall provide for the distribution of amounts under this 
        paragraph to Indian tribes on the basis of a competition 
        conducted pursuant to specific criteria for the selection of 
        Indian tribes to receive such amounts. The criteria shall be 
        contained in a regulation issued by the Secretary after notice 
        and opportunity for public comment.
            ``(3) Amount for metropolitan cities and urban counties.--
        For each fiscal year, the Secretary shall determine the amount 
        to be allocated to each metropolitan city and urban county 
        under this subtitle--
                    ``(A) by dividing the amount available for 
                allocation to all metropolitan cities and urban 
                counties under this subtitle for the fiscal year by the 
                amount available for allocation to such cities and 
                counties under section 106(a) of the Housing and 
                Community Development Act of 1974 for the prior fiscal 
                year; and
                    ``(B) for each such city or county, by multiplying 
                the result under subparagraph (A) by the amount that 
                was allocated to such city and county under section 
                106(b) of such Act for the prior fiscal year.
            ``(4) Amount for states.--For each fiscal year, the 
        Secretary shall determine the amount to be allocated to each 
        State under this subtitle--
                    ``(A) by dividing the amount available for 
                allocation to States under this subtitle for the fiscal 
                year by the amount available for allocation to States 
                under section 106(d) of the Housing and Community 
                Development Act of 1974 for the prior fiscal year; and
                    ``(B) for each State, by multiplying the result 
                under subparagraph (A) by the amount that was allocated 
                to such State under section 106(d) of such Act for the 
                prior fiscal year.
    ``(b) Allocation Rules.--
            ``(1) General minimum allocation requirement.--If, under 
        allocation pursuant to subsection (a), any metropolitan city or 
        urban county would receive in any fiscal year a grant of less 
        than 0.05 percent of the amounts appropriated to carry out this 
        subtitle for the fiscal year, such amount shall instead be 
        allocated to the State.
            ``(2) Allocation for consortia.--
                    ``(A) Eligibility.--Notwithstanding paragraph (1), 
                a jurisdiction shall be eligible to receive grants 
                under this subtitle if the Secretary finds that 
                geographically contiguous metropolitan cities or urban 
                counties have formed a consortium that, in the 
                determination of the Secretary--
                            ``(i) has sufficient authority and 
                        administrative capability to act on behalf of 
                        its member jurisdictions in carrying out the 
                        provisions of this section;
                            ``(ii) will, according to a written 
                        certification by the State, direct its 
                        activities to the alleviation of the State's 
                        most severe problems of homelessness; and
                            ``(iii) will receive an allocation under 
                        subparagraph (B) that meets the percentage 
                        requirement of paragraph (1).
                    ``(B) Allocation.--A consortium shall be deemed to 
                be a metropolitan city or urban county for purposes of 
                this section. The allocation for a consortium that has 
                met the requirements under subparagraph (A) shall equal 
                the total of the allocations of its member 
                jurisdictions.
            ``(3) Grantee status.--Once a State, metropolitan city, or 
        urban county becomes a grantee, it shall remain eligible to 
        receive grants for subsequent fiscal years, except as provided 
        in paragraph (4).
            ``(4) Revocation.--The Secretary may revoke a 
        jurisdiction's status as a grantee if--
                    ``(A) the Secretary finds, after reasonable notice 
                and opportunity for hearing, that the jurisdiction is 
                unwilling or unable to carry out the provisions of this 
                subtitle; or
                    ``(B) the jurisdiction's allocation is less than 
                the minimum allocation requirement under paragraph (1) 
                for 2 consecutive years.
    ``(c) Initial Allocation of Assistance.--Not later than 60 days 
after any amounts to carry out this section are provided in an 
appropriation Act (or, in the case of the 1-year period beginning on 
the date of the enactment of this Act, not later than 30 days after 
regulations to implement this section are issued or required to be 
issued, whichever occurs first), the Secretary shall allocate amounts 
in accordance with this section and promptly notify each jurisdiction 
receiving an allocation of its allocation amount. If a metropolitan 
city or urban county is not eligible to receive grants because its 
allocation amount is less than the amount required under subsection 
(b)(1), the Secretary shall inform the metropolitan city or urban 
county in writing how the metropolitan city or urban county may become 
eligible to receive grants.
    ``(d) Distribution of Assistance by States.--
            ``(1) Comprehensive housing affordability strategy.--Each 
        State shall distribute its allocation of assistance under this 
        subsection in accordance with the need for homeless assistance 
        as identified in the State's comprehensive housing 
        affordability strategy approved as required under section 
        403(a)(1) and shall coordinate its efforts where assistance is 
        distributed to a unit of general local government that is a 
        grantee. Notwithstanding the preceding sentence, for each 
        allocation of assistance under this section, each State may 
        distribute not more than 25 percent of the amounts allocated to 
        the State to metropolitan cities and urban counties that 
        receive an allocation under subsection (a)(3).
            ``(2) Direct use and distribution.--A State may use amounts 
        allocated to it under this section to carry out eligible 
        activities directly or to distribute amounts to units of 
        general local government. When a State carries out activities 
        directly (including distribution of amounts to private 
        nonprofit organizations under subsection (e)), it shall consult 
        with the applicable chief executive officer of the unit of 
        general local government. When a State distributes amounts to 
        private nonprofit organizations, the State shall request the 
        applicable unit of general local government to review and 
        comment on each application from such an organization for a 
        project to be assisted under this subtitle. The State shall 
        require the unit of general local government to submit comments 
        to the State within 30 days after the date of the request and 
        shall take any comments into consideration in deciding whether 
        to fund the application.
    ``(e) Distribution to Nonprofit Organizations.--A grantee may 
distribute all or a portion of its grant to private nonprofit 
organizations providing assistance to homeless individuals. In the case 
of a grantee that is a State, any such distribution shall be made in 
accordance with subsection (d).
    ``(f) Reallocation.--Any amounts allocated for a fiscal year 
pursuant to subsections (a) and (b) that are not received by the 
jurisdiction to which they were allocated for any reason, are returned, 
or which become available as a result of actions under section 
405(f)(4), shall be reallocated in the fiscal year to grantees that 
received an allocation in accordance with subsections (a) and (b), or 
in the next fiscal year if the Secretary determines that the amounts 
available for reallocation are so small that reallocation in the same 
year would not be feasible.

``SEC. 405. REQUIREMENTS OF GRANTEES AND PROJECT SPONSORS.

    ``(a) Matching Requirements.--Each grantee shall supplement the 
grants provided to the grantee under this subtitle with an amount of 
funds from non-Federal sources equal to 10 percent of the amount 
provided under this subtitle. Each grantee shall certify to the 
Secretary, as the Secretary shall require, its compliance with this 
subsection, describing the sources and amounts of such supplemental 
funds. Supplemental funds may include the value of any donated material 
or building, the value of any lease on a building, any salary paid to 
staff to carry out the program of a project sponsor, and the value of 
the time and services contributed by volunteers to carry out the 
program of a project sponsor at a rate determined by the Secretary.
    ``(b) Housing Quality.--Each grantee shall certify to the 
Secretary, as the Secretary shall require, that any housing assisted 
with amounts provided to the grantee under this subtitle shall be 
decent, safe, and sanitary and conform with all applicable State and 
local housing and building codes and licensing requirements in the 
jurisdiction in which the housing is located.
    ``(c) Assistance to Homeless Persons.--Each grantee shall certify 
to the Secretary, as the Secretary shall require, that homeless persons 
who are assisted with amounts provided to the grantee under this 
subtitle will be assisted in obtaining--
            ``(1) appropriate supportive services; and
            ``(2) other Federal, State, local, and private assistance 
        available for homeless persons.
    ``(d) Prohibition of Substitution of Funds.--Each grantee shall 
certify to the Secretary, as the Secretary shall require, that neither 
assistance received under this subtitle nor any State or local 
government funds used to supplement such assistance will be used to 
replace other public funds previously used, or designated for use, to 
assist the homeless.
    ``(e) Civil Rights Compliance.--Each grantee shall certify to the 
Secretary, as the Secretary shall require, that the grant will be 
conducted and administered in conformity with title VI of the Civil 
Rights Act of 1964 and the Fair Housing Act, and that the grantee will 
affirmatively further fair housing.
    ``(f) Review and Adjustments.--
            ``(1) Performance report.--Each grantee shall submit to the 
        Secretary, at a time determined by the Secretary, a data-based 
        performance and evaluation report, by project, concerning the 
        use of amounts made available to the grantee under this 
        subtitle. The grantee shall make the report publicly available 
        for inspection by citizens of the grantee's jurisdiction in 
        sufficient time to permit comment on the report before its 
        submission. The grantee's report shall indicate its 
        programmatic accomplishments and include a summary of any 
        comments regarding the grantee's program received by the 
        grantee from citizens in its jurisdiction.
            ``(2) Other reports.--The Secretary may require grantees 
        and other recipients of assistance under this subtitle to 
        submit to the Secretary such other reports and other 
        information as the Secretary determines are necessary to 
        monitor the program.
            ``(3) Reviews and audits.--The Secretary shall, on at least 
        an annual basis, make such reviews and audits as may be 
        necessary or appropriate to determine the following:
                    ``(A) Direct amounts.--In the case of grants made 
                to States (with respect to amounts used by a State to 
                carry out eligible activities directly) and 
                metropolitan cities, and urban counties--
                            ``(i) whether the grantee has carried out 
                        its activities in a timely manner;
                            ``(ii) whether the grantee has carried out 
                        such activities and its certifications in 
                        accordance with the requirements of this 
                        subtitle and with other applicable laws; and
                            ``(iii) whether the grantee has a 
                        continuing capacity to carry out such 
                        activities in a timely manner.
                    ``(B) Distributed amounts.--In the case of grants 
                made to States with respect to amounts distributed by 
                the State to units of general local government--
                            ``(i) whether the State has distributed 
                        funds to units of general local government in a 
                        timely manner;
                            ``(ii) whether the State has carried out 
                        its certifications in compliance with the 
                        requirements of this subtitle and other 
                        applicable laws; and
                            ``(iii) whether the State has made such 
                        reviews and audits of the units of general 
                        local government as may be necessary or 
                        appropriate to determine whether such units 
                        have satisfied the applicable criteria 
                        described in subparagraph (A).
            ``(4) Adjustment.--The Secretary may adjust, reduce, or 
        withdraw assistance made available under this subtitle to a 
        grantee or take other action as appropriate in accordance with 
        the Secretary's reviews and audits under this subsection, 
        except that amounts already expended on eligible activities 
        under this subtitle may not be recaptured or deducted from 
        future assistance.
    ``(g) Site Control.--Each grantee or project sponsor shall furnish 
reasonable assurances, as the Secretary shall require, that it will own 
or control a site for a proposed project not later than 12 months after 
notification of an award for grant assistance. A suitable site 
different from the site specified in the application shall satisfy the 
requirement of this subsection. If ownership or control of a site is 
not obtained within 2 years after notification of an award for grant 
assistance, the grant shall be recaptured and reallocated.
    ``(h) Prevention of Undue Benefits.--The Secretary may prescribe 
any terms and conditions necessary to prevent project sponsors from 
unduly benefiting from the sale or other disposition of projects 
constructed, rehabilitated, or acquired with assistance under this 
subtitle other than a sale or other disposition resulting in the use of 
the project for the direct benefit of very low-income persons.
    ``(i) Additional Requirements.--The Secretary may establish any 
other requirements as the Secretary determines are necessary for 
grantees to administer activities authorized under this subtitle in an 
efficient manner.

``SEC. 406. ADMINISTRATIVE PROVISIONS.

    ``(a) Limitation on Administrative Expenses.--A grantee may not use 
more than 10 percent of the assistance received by the grantee under 
this subtitle for administrative purposes.
    ``(b) Income Eligibility.--A homeless person shall be eligible for 
assistance under any program under this subtitle only if the person is 
a very low-income person.
    ``(c) Flood Elevation Requirements.--Flood protection standards 
applicable to housing acquired, rehabilitated, or assisted under this 
subtitle shall be no more restrictive than the standards applicable to 
any other program administered by the Secretary.
    ``(d) Environmental Protection.--The provisions of and regulations 
and procedures applicable under section 104(g) of the Housing and 
Community Development Act of 1974 shall apply to assistance and 
projects under this subtitle.
    ``(e) GAO Audits.--Insofar as they relate to amounts provided under 
this subtitle, the financial transactions of recipients of such amounts 
may be audited by the General Accounting Office under such rules and 
regulations as may be prescribed by the Comptroller General of the 
United States. The representatives of the General Accounting Office 
shall have access to all books, accounts, records, reports, files, and 
other papers, things, or property belonging to, or in use by, such 
recipients pertaining to the financial transactions and necessary to 
facilitate the audit.

``SEC. 407. REPORTS TO CONGRESS.

    ``For each fiscal year for which the Secretary makes grants under 
this subtitle, the Secretary shall submit to the Congress a report 
summarizing the activities carried out under this subtitle and setting 
forth the findings, conclusions, and recommendations of the Secretary 
as a result of the activities. The report shall summarize and assess 
the results of any reports required under section 405(f), provide 
information on the activities funded under this subtitle, and assess 
whether there is a continuing need for assistance under this subtitle. 
The report for a fiscal year shall be submitted not later than 3 months 
after the end of the fiscal year.

``SEC. 408. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this 
subtitle $380,000,000 for fiscal year 1995, and $385,000,000 for fiscal 
year 1996. Any amounts appropriated under this section shall remain 
available until expended.

                    ``CHAPTER 2--APPROVED ACTIVITIES

``SEC. 421. HOMELESSNESS PREVENTION.

    ``(a) Requirements for Assistance.--Assistance may be provided 
under this section only to very low-income persons and families who 
have received eviction notices or notices of termination of utility 
services and who--
            ``(1) are unable to make the required payments due to a 
        sudden reduction in income;
            ``(2) need such assistance to avoid the eviction or 
        termination of services; and
            ``(3) have a reasonable prospect of being able to resume 
        payments within a reasonable period of time.
Assistance under this section may not be used to supplant funding for 
preexisting homelessness prevention activities from other sources.
    ``(b) Eligible Activities.--Assistance under this section may only 
be used for activities designed to help persons and families described 
in subsection (a) avoid becoming homeless, which shall include 
assistance for making mortgage payments, rental payments, and utility 
payments and any activities other than activities that the Secretary 
has found to be inconsistent with the purposes of this Act.

``SEC. 422. EMERGENCY SHELTER.

    ``(a) Definition.--The provision of emergency shelter under this 
section may only include--
            ``(1) the renovation, major rehabilitation, or conversion 
        of a building or buildings to be used as emergency shelters;
            ``(2) the provision of supportive services, if such 
        services do not supplant any services provided by the local 
        government during any part of the 12-month period ending on the 
        date of the commencement of the operation of the emergency 
        shelter; and
            ``(3) maintenance, operation (other than staff), insurance, 
        utilities, and furnishings for such buildings.
    ``(b) Program Requirements.--A grantee may use assistance provided 
under this subtitle for an emergency shelter project under this section 
only if the project sponsor has agreed that it will--
            ``(1) in the case of assistance involving major 
        rehabilitation or conversion of a building, maintain the 
        building as a shelter for homeless individuals and families for 
        not less than a 10-year period unless, within such 10-year 
        period, the need for maintaining the building as a full-time 
        shelter ceases to exist and the building is used for the 
        remainder of such period to carry out other eligible activities 
        under this subtitle;
            ``(2) in the case of assistance involving rehabilitation 
        (other than major rehabilitation or conversion of a building), 
        maintain the building as a shelter for homeless individuals and 
        families for not less than a 3-year period; or
            ``(3) in the case of assistance involving only activities 
        described in paragraphs (2) and (3) of subsection (a), provide 
        services or shelter to homeless individuals and families at the 
        original site or structure or other sites or structures serving 
        the same general population for the period during which such 
        assistance is provided.
    ``(c) Matching Amounts.--A grantee may use assistance provided 
under this subtitle for an emergency shelter project under this section 
only if the project sponsor supplements such assistance with an equal 
amount of funds from sources other than this subtitle. Each project 
sponsor shall certify to the grantee its compliance with this 
subsection, and shall include with such certification a description of 
the sources and amounts of such supplemental funds. For purposes of 
this subsection, supplemental amounts may include any amounts described 
in the last sentence of section 405(a).

``SEC. 423. SUPPORTIVE HOUSING FOR THE HOMELESS.

    ``(a) Supportive Housing.--Housing for homeless individuals shall 
be considered to be supportive housing for purposes of this subtitle 
if--
            ``(1) the housing is safe and sanitary and meets any 
        applicable State and local housing codes and licensing 
        requirements in the jurisdiction in which the housing is 
        located;
            ``(2) the housing is--
                    ``(A) transitional housing;
                    ``(B) permanent housing for homeless persons with 
                disabilities; or
                    ``(C) a particularly innovative project for, or 
                alternative methods of, meeting the immediate and long-
                term needs of homeless individuals and families (or is 
                part of such a project); and
            ``(3) supportive services are provided in connection with 
        the housing to address the special needs of homeless 
        individuals intended to be served by the housing.
    ``(b) Transitional Housing.--
            ``(1) Definition.--For purposes of this section, the term 
        `transitional housing' means housing, the purpose of which is 
        to facilitate the movement of homeless individuals and families 
        to permanent housing within 24 months or such longer period as 
        the Secretary determines necessary.
            ``(2) Rule regarding denial of assistance based on 
        prolonged occupancy of homeless families.--The Secretary may 
        prohibit the provision of assistance under this section for a 
        supportive housing project intended to be used as transitional 
        housing based on a determination that the project does not 
        comply with the provisions of paragraph (1) only if the 
        Secretary determines that a substantial number of homeless 
        individuals or families have remained in the housing longer 
        than the period referred to in such paragraph.
    ``(c) Permanent Housing for Homeless Persons With Disabilities.--
For purposes of this section, the term `permanent housing for homeless 
persons with disabilities' means community-based housing for homeless 
persons with disabilities that--
            ``(1) is a home designed solely for housing homeless 
        persons with disabilities or dwelling units in a multifamily 
        housing project, condominium project, or cooperative project;
            ``(2) in the case of a home, is located on a site that does 
        not contain another home used for the same purposes and that is 
        not contiguous to another site containing a home used for the 
        same purposes; and
            ``(3) provides long-term housing and supportive services 
        for not more than--
                    ``(A) 8 such persons in a single structure or 
                contiguous structures;
                    ``(B) 16 such persons, but only if not more than 20 
                percent of the units in a structure are designated for 
                such persons; or
                    ``(C) more than 16 persons if the applicant 
                demonstrates that local market conditions dictate the 
                development of a large project and such development 
                will achieve the neighborhood integration objectives of 
                the program within the context of the affected 
                community.
    ``(d) Types of Assistance.--A grantee may provide assistance under 
this section to a project sponsor of supportive housing only in the 
following manners:
            ``(1) Acquisition and rehabilitation.--Assistance may be 
        provided in the form of an advance in an amount not exceeding 
        cost of acquisition, substantial rehabilitation, or acquisition 
        and rehabilitation of an existing structure for use as 
        supportive housing. The repayment of any outstanding debt owed 
        on a loan made to purchase an existing structure shall be 
        considered to be a cost of acquisition eligible for an advance 
        under this paragraph if the structure was not used as 
        supportive housing before the receipt of assistance.
            ``(2) Moderate rehabilitation.--Assistance may be provided 
        in the form of a grant for moderate rehabilitation of an 
        existing structure for use as supportive housing. Assistance 
        under this paragraph shall not preclude assistance under 
        paragraph (1).
            ``(3) Operating costs.--Assistance may be provided in the 
        form of annual payments for operating costs of supportive 
        housing (including supportive housing that is newly constructed 
        with assistance provided from sources other than this subtitle) 
        in an amount not exceeding 75 percent of the annual operating 
        costs of such housing.
            ``(4) Technical assistance.--Technical assistance may be 
        provided in--
                    ``(A) establishing supportive housing in an 
                existing structure;
                    ``(B) operating supportive housing in existing 
                structures and in structures that are newly constructed 
                with assistance provided from sources other than this 
                subtitle; and
                    ``(C) providing supportive services to the 
                residents of supportive housing (including supportive 
                housing that is newly constructed with assistance 
                provided from sources other than this subtitle).
            ``(5) Employment assistance program.--Assistance may be 
        provided in the form of a grant for establishing and operating 
        an employment assistance program for the residents of 
        supportive housing, which shall include--
                    ``(A) employment of residents in the operation and 
                maintenance of the housing; and
                    ``(B) the payment of the transportation costs of 
                residents to places of employment.
            ``(6) Supportive services.--Assistance may be provided in 
        the form of a grant for costs of supportive services provided 
        to homeless individuals. Any project sponsor, including program 
        recipients under title IV of this Act before the date of the 
        enactment of the Stewart B. McKinney Homeless Assistance and 
        Prevention Formula Grant Amendments Act of 1994, may reapply 
        for such assistance or for the renewal of such assistance to 
        continue services funded under prior grants or to provide other 
        services.
    ``(e) Program Requirements.--
            ``(1) Required agreements.--A grantee may use assistance 
        provided under this subtitle for a supportive housing project 
        under this section only if the project sponsor has agreed--
                    ``(A) to operate the proposed project as supportive 
                housing for not less than 10 years;
                    ``(B) to conduct an ongoing assessment of the 
                supportive services required by the residents of the 
                project;
                    ``(C) to provide such residential supervision as 
                the Secretary determines is necessary to facilitate the 
                adequate provision of supportive services to the 
                residents of the project; and
                    ``(D) to comply with such other terms and 
                conditions as the Secretary or grantee may establish 
                for purposes of carrying out this program in an 
                effective and efficient manner.
            ``(2) Occupant charge.--Each homeless individual or family 
        residing in a project assisted under this section that provides 
        supportive housing may be required to pay an occupancy charge 
        in an amount determined by the recipient providing the project, 
        which may not exceed the amount determined under section 3(a) 
        of the United States Housing Act of 1937. Occupancy charges 
        paid may be reserved, in whole or in part, to assist residents 
        in moving to permanent housing.
    ``(f) Matching Amounts.--A grantee may use assistance provided 
under this subtitle for a supportive housing project under this section 
only if the project sponsor supplements such assistance with--
            ``(1) in the case of amounts used for activities under 
        paragraph (1), (2) or (3) of subsection (d) for a supportive 
        housing project, an equal amount of funds from sources other 
        than this subtitle; and
            ``(2) in the case of amounts used for activities under 
        paragraph (4), (5), or (6) of subsection (d) for a supportive 
        housing project, an amount equal to 25 percent of the amount 
        provided under this subtitle for the project.
Each project sponsor shall certify to the grantee its compliance with 
this subsection, and shall include with such certification a 
description of the sources and amounts of such supplemental funds. For 
purposes of this subsection, supplemental amounts may include any 
amounts described in the last sentence of section 405(a).
    ``(g) Single Room Occupancy Dwellings.--A project assisted under 
this section may provide supportive housing or supportive services in 
dwelling units that do not contain bathrooms or kitchen facilities and 
are appropriate for use as supportive housing or in projects containing 
some or all such dwelling units.
    ``(h) State Participation.--Each grantee providing assistance to a 
project under this section shall transmit to the Secretary a letter of 
participation from the State assuring that the State will promptly 
transmit assistance to the project sponsor and will facilitate the 
provision of necessary supportive services to the residents of the 
project.

``SEC. 424. DEVELOPMENT OF ADDITIONAL APPROVED ACTIVITIES.

    ``The Secretary, in cooperation with grantees and other appropriate 
parties, shall develop additional approved activities to carry out the 
purposes of this subtitle.''.
    (b) Regulations.--Not later than 60 days after the date of the 
enactment of this Act, the Secretary of Housing and Urban Development 
shall by notice establish any requirements necessary to carry out the 
amendments made by this section. Based on such notice, the Secretary 
shall issue regulations to carry out the amendments made by this 
section not later than 12 months after the date of the enactment of 
this Act.

SEC. 202. TRANSITION PROVISIONS.

    Notwithstanding section 403(a) of the Stewart B. McKinney Homeless 
Assistance Act (as amended by section 201(a) of this Act), during the 
1-year period beginning on the date of the enactment of this Act, the 
Secretary of Housing and Urban Development may allocate homeless 
assistance made available under the Stewart B. McKinney Homeless 
Assistance Act in accordance with the regulations for such Act in 
effect immediately before the enactment of this Act, to the extent 
determined by the Secretary to be necessary to provide for the orderly 
transition to the regulations issued pursuant to section 201(b).

SEC. 203. CONFORMING AMENDMENTS.

    (a) Redesignation.--Title IV of the Stewart B. McKinney Homeless 
Assistance Act (42 U.S.C. 11361 et seq.) is amended by redesignating 
subtitles D, E, F, and G as subtitles B, C, D, and E, respectively.
    (b) Program Requirements for Safe Havens Demonstration.--Section 
434(a)(4)(E) of the Stewart B. McKinney Homeless Assistance Act (42 
U.S.C. 11394(a)(4)(E)) is amended by striking ``subtitle F'' and 
inserting ``subtitle D''.
    (c) Table of Contents.--The table of contents in section 101(b) of 
the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11301 note) 
is amended by striking the item relating to the heading for subtitle A 
of title IV and all that follows through the item relating to the 
heading for subtitle G of such title and inserting the following:

``Subtitle A--Homeless Housing Assistance and Prevention Formula Grant 
                                Program

                    ``Chapter 1--General Provisions

``Sec. 401. Statement of purpose.
``Sec. 402. Definitions.
``Sec. 403. General authority.
``Sec. 404. Allocation and distribution of funds.
``Sec. 405. Requirements of grantees and project sponsors.
``Sec. 406. Administrative provisions.
``Sec. 407. Reports to Congress.
``Sec. 408. Authorization of appropriations.
                    ``Chapter 2--Approved Activities

``Sec. 421. Homelessness prevention.
``Sec. 422. Emergency shelter.
``Sec. 423. Supportive housing for the homeless.
``Sec. 424. Development of additional approved activities.
   ``Subtitle B--Safe Havens for Homeless Individuals Demonstration 
                                Program

``Sec. 431. Establishment of demonstration.
``Sec. 432. Definitions.
``Sec. 433. Program assistance.
``Sec. 434. Program requirements.
``Sec. 435. Occupancy charge.
``Sec. 436. Termination of assistance.
``Sec. 437. Evaluation and report.
``Sec. 438. Regulations.
``Sec. 439. Authorization of appropriations.
                  ``Subtitle C--Miscellaneous Programs

``Sec. 441. Section 8 assistance for single room occupancy dwellings.
``Sec. 442. Community development block grant amendment.
``Sec. 443. Administrative provisions.
                ``Subtitle D--Shelter Plus Care Program

                     ``Part I--General Requirements

``Sec. 451. Purpose.
``Sec. 452. Rental housing assistance.
``Sec. 453. Supportive services requirements.
``Sec. 454. Applications.
``Sec. 455. Selection criteria.
``Sec. 456. Required agreements.
``Sec. 457. Housing standards and rent reasonableness.
``Sec. 458. Tenant rent.
``Sec. 459. Administrative fees.
``Sec. 460. Occupancy.
``Sec. 461. Termination of assistance.
``Sec. 462. Definitions.
``Sec. 463. Authorization of appropriations.
               ``Part II--Tenant-Based Rental Assistance

``Sec. 471. Authority.
``Sec. 472. Housing assistance.
``Sec. 473. Amount of assistance.
              ``Part III--Project-Based Rental Assistance

``Sec. 476. Authority.
``Sec. 477. Housing assistance.
``Sec. 478. Term of contract and amount of assistance.
               ``Part IV--Sponsor-Based Rental Assistance

``Sec. 481. Authority.
``Sec. 482. Housing assistance.
``Sec. 483. Term of contract and amount of assistance.
``Part V--Section 8 Moderate Rehabilitation Assistance for Single-Room 
                          Occupancy Dwellings

``Sec. 486. Authority.
``Sec. 487. Fire and safety improvements.
``Sec. 488. Contract requirements.
            ``Subtitle E--Rural Homeless Housing Assistance

``Sec. 491. Rural homelessness grant program.
``Sec. 492. Use of FMHA inventory for transitional housing for homeless 
                            persons and for turnkey housing.''.

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