I 

109TH CONGRESS 

2D SESSION H. R. 5041 

To amend the McKinney Vento Homeless Assistance Act to reauthorize the 

Act, and for other purposes. 

IN THE HOUSE OF REPRESENTATIVES 

MARCH 29, 2006 

Mr. RENZI (by request) introduced the following bill; which was referred to 

the Committee on Financial Services 

A BILL 

To amend the McKinney Vento Homeless Assistance Act 

to reauthorize the Act, and for other purposes. 

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

3 SECTION 1. SHORT TITLE. 

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

5 Consolidation Act of 2006’’. 

6 SEC. 2. FINDINGS AND PURPOSE. 

7 Section 102 of the McKinney Vento Homeless Assist8 ance Act (42 U.S.C. 11301) is amended to read as follows: 

9 ‘‘SEC. 102. FINDINGS AND PURPOSE. 

10 ‘‘(a) FINDINGS.—Congress finds that— 


rfake on PROD1PC77 with BILLS
2 

•HR 5041 IH 

1 ‘‘(1) assistance from the Federal Government is 

2 an important factor in the success of efforts by 

3 State and local governments and the private sector 

4 to address the problem of homelessness in a com5 prehensive manner; 

6 ‘‘(2) there are several housing programs the 

7 Federal Government administers to assist persons 

8 experiencing homelessness, including programs spe9 cifically for individuals with disabling conditions, 

10 veterans, and youth; 

11 ‘‘(3) homeless assistance programs must be 

12 evaluated on the basis of their effectiveness in reduc13 ing homelessness in their given communities, 

14 transitioning individuals and families to permanent 

15 housing and stability, and optimizing self-sufficiency; 

16 ‘‘(4) States and units of general local govern17 ment receiving Federal grant funds must be evalu18 ated on the basis of their effectiveness in imple19 menting plans to appropriately discharge individuals 

20 from health care or treatment facilities or institu21 tions, foster care or youth facilities, correctional in22 stitutions, or other non-targeted service systems; 

23 ‘‘(5) an effective plan for reducing homelessness 

24 should provide a comprehensive housing system (in25 cluding permanent housing, transitional housing, 


rfake on PROD1PC77 with BILLS
3 

•HR 5041 IH 

1 homelessness prevention and emergency shelter) that 

2 recognizes that, while some individuals and families 

3 experiencing homelessness attain economic viability 

4 and independence utilizing transitional housing and 

5 then permanent housing, others can become self-suf6 ficient by moving directly to permanent housing; 

7 ‘‘(6) supportive housing activities include the 

8 provision of permanent housing or transitional hous9 ing, and appropriate supportive services, in an envi10 ronment that can meet the short term or long term 

11 needs of persons experiencing homelessness as they 

12 become increasingly self-sufficient; 

13 ‘‘(7) homeless housing and supportive services 

14 programs within a community are most effective 

15 when they are developed and operated as part of an 

16 inclusive, collaborative, locally driven homeless plan17 ning process that involves as decisionmakers persons 

18 experiencing homelessness, advocates for persons ex19 periencing homelessness, service organizations, gov20 ernment officials, business persons, neighborhood 

21 advocates, local or national foundations, and other 

22 community members; 

23 ‘‘(8) faith-based and other community-based or24 ganizations play important roles in providing housVerDate Aug 31 2005 02:12 Apr 01, 2006 Jkt 049196 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H5041.IH H5041

rfake on PROD1PC77 with BILLS
4 

•HR 5041 IH 

1 ing and supportive services to persons experiencing 

2 homelessness; 

3 ‘‘(9) homelessness is a symptom of many neigh4 borhood and community problems and the remedies 

5 to these problems require a comprehensive local ap6 proach integrating all available resources; 

7 ‘‘(10) the Federal Government has a responsi8 bility to establish partnerships with State and local 

9 governments and private sector entities to address 

10 comprehensively the problems of homelessness; and 

11 ‘‘(11) while the results of Department of Hous12 ing and Urban Development programs targeted for 

13 persons experiencing homelessness have been posi14 tive, the number and complexity of such programs 

15 calls for simplification of the community led grant 

16 making process. 

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

18 ‘‘(1) to create a unified and performance based 

19 process for allocating and administering funds under 

20 title IV; 

21 ‘‘(2) to encourage comprehensive, collaborative 

22 local planning of housing and services programs for 

23 persons experiencing homelessness; 


rfake on PROD1PC77 with BILLS
5 

•HR 5041 IH 

1 ‘‘(3) to focus the resources and efforts of the 

2 public and private sectors on helping to prevent 

3 homelessness and to end chronic homelessness; 

4 ‘‘(4) to provide funds for programs and to im5 plement activities to assist individuals and families 

6 in the transition from homelessness, and to prevent 

7 vulnerable individuals and families from becoming 

8 homeless; 

9 ‘‘(5) to consolidate the separate homeless assist10 ance programs carried out under title IV (consisting 

11 of the supportive housing program, the safe havens 

12 for homeless individuals demonstration program, the 

13 section 8 assistance for single-room occupancy dwell14 ings program, the shelter plus care program, and the 

15 rural homeless housing assistance program) into a 

16 single program with specific eligible activities; and 

17 ‘‘(6) to allow flexibility and creativity in re 

18 thinking solutions to homelessness, including hous19 ing strategies, service delivery, and the involvement 

20 of persons experiencing homelessness in decision21 making regarding opportunities for their long term 

22 stability, growth, well being and ultimate self-suffi23 ciency.’’. 


rfake on PROD1PC77 with BILLS
6 

•HR 5041 IH 

1 SEC. 3. HOUSING ASSISTANCE GENERAL PROVISIONS. 

2 Subtitle A of title IV of the McKinney Vento Home3 less Assistance Act (42 U.S.C. 11361 et seq.) is amend4 ed— 

5 (1) by striking the subtitle heading and insert6 ing the following: 

7 ‘‘Subtitle A—General Provisions’’. 

8 (2)(A) by redesignating section 401 (42 

9 U.S.C.11361) as section 403; and 

10 (B) by redesignating section 402 (42 

11 U.S.C.11362) as section 406; 

12 (3) by inserting before section 403 (as redesig13 nated in paragraph (2)) the following: 

14 ‘‘SEC. 401. DEFINITIONS. 

15 ‘‘In this title: 

16 ‘‘(1) CHRONICALLY HOMELESS PERSON.—The 

17 term ‘chronically homeless person’ means an unac18 companied homeless individual with a disabling con19 dition who has either been continuously sleeping in 

20 a place not meant for human habitation or in an 

21 emergency homeless shelter for a year or more or 

22 who has had at least four episodes of continuously 

23 sleeping in a place not meant for human habitation 

24 or in an emergency homeless shelter in the past 

25 three years. 


rfake on PROD1PC77 with BILLS
7 

•HR 5041 IH 

1 ‘‘(2) CONTINUUM OF CARE BOARD.—The term 

2 ‘continuum of care board’ means a legal entity 

3 that— 

4 ‘‘(A) is a representative community home5 less planning body established or designed in 

6 accordance with section 402; and 

7 ‘‘(B) serves as the applicant for project 

8 sponsors who jointly submit a single application 

9 for grants under subtitle C in accordance with 

10 a collaborative process. 

11 ‘‘(3) CONSOLIDATED PLAN.—The term ‘Con12 solidated Plan’ means any such plan established by 

13 the Secretary by regulation incorporating the appli14 cable comprehensive housing affordability strategy, 

15 and such other requirements as the Secretary shall 

16 prescribe, in accordance with title I of the Cranston17 Gonzalez National Affordable Housing Act (42 

18 U.S.C. 12704 et seq.). 

19 ‘‘(4) DISABLING CONDITION.—The term ‘dis20 abling condition’ means a diagnosable substance use 

21 disorder, serious mental illness, developmental dis22 ability, or chronic physical illness or disability, in23 cluding the co-occurrence of two or more of these 

24 conditions, that limits an individual’s ability to work 

25 or perform one or more activities of daily living. 


rfake on PROD1PC77 with BILLS
8 

•HR 5041 IH 

1 ‘‘(5) ELIGIBLE PERSON.—The term ‘eligible 

2 person’ means, with respect to subsections (a) and 

3 (e) of section 423, a homeless individual with a dis4 abling condition and the families of such individuals. 

5 ‘‘(6) LEGAL ENTITY.—The term ‘legal entity’ 

6 means— 

7 ‘‘(A) an entity organized or recognized 

8 under the authority of state law; 

9 ‘‘(B) an organization associated with State 

10 or local government; or 

11 ‘‘(C) a consortium of organizations associ12 ated with state or local governments that has 

13 constituted itself in accordance with subpara14 graph (A). 

15 ‘‘(7) PERMANENT HOUSING.—The term ‘perma16 nent housing’ means housing, including rental as17 sistance, without a designated length of stay for 

18 homeless individuals with disabling conditions and 

19 homeless families that include such an individual 

20 that is an adult. 

21 ‘‘(8) PRIVATE NONPROFIT ORGANIZATION..— 

22 The term ‘private nonprofit organization’ means an 

23 organization, including faith-based and other com24 munity-based organizations— 


rfake on PROD1PC77 with BILLS
9 

•HR 5041 IH 

1 ‘‘(A) organized and recognized under the 

2 authority of state law; 

3 ‘‘(B) no part of the net earnings of which 

4 inures to the benefit of any member, founder, 

5 contributor, or individual; 

6 ‘‘(C) that has a voluntary board; and 

7 ‘‘(D) that has an accounting system, or 

8 has designated a fiscal agent in accordance with 

9 requirements established by the Secretary. 

10 ‘‘(9) PROJECT.—The term ‘project’ means a 

11 structure or structures (or a portion of such struc12 ture or structures) for which— 

13 ‘‘(A) assistance under subtitle C is used 

14 to— 

15 ‘‘(i) acquire, rehabilitate, construct, 

16 lease or rent the structure; 

17 ‘‘(ii) make annual payments for oper18 ating costs; or 

19 ‘‘(iii) provide supportive services in 

20 connection therewith; or 

21 ‘‘(B) the Secretary provides technical as22 sistance. 

23 ‘‘(10) PROJECT BASED.—The term ‘project24 based’, used with respect to rental assistance, means 

25 assistance provided pursuant to a contract that— 


rfake on PROD1PC77 with BILLS
10 

•HR 5041 IH 

1 ‘‘(A) is between— 

2 ‘‘(i) a project sponsor; and 

3 ‘‘(ii) an owner of an existing struc4 ture; and 

5 ‘‘(B) provides that rental assistance pay6 ments shall be made to the owner and that the 

7 units in the structure shall be occupied by eligi8 ble persons for not less than the term of the 

9 contract. 

10 ‘‘(11) PROJECT SPONSOR.—The term ‘project 

11 sponsor’ means the organization directly operating 

12 the proposed projects. 

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

14 means the Secretary of Housing and Urban Develop15 ment. 

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

17 the several States, the District of Columbia, the 

18 Commonwealth of Puerto Rico, the United States 

19 Virgin Islands, Guam, American Samoa, the North20 ern Mariana Islands and Palau. 

21 ‘‘(14) SUPPORTIVE HOUSING.—The term ‘sup22 portive housing’ means a housing program that— 

23 ‘‘(A) helps homeless persons and families 

24 transition from homelessness to living in safe, 


rfake on PROD1PC77 with BILLS
11 

•HR 5041 IH 

1 decent and affordable housing in a manner that 

2 optimizes self-sufficiency; and 

3 ‘‘(B) provides supportive services and 

4 housing assistance on either a transitional or 

5 permanent basis, as determined by the assessed 

6 abilities and needs of the program participants. 

7 ‘‘(15) SUPPORTIVE SERVICES.—The term ‘sup8 portive services’ means the services described in sec9 tion 428(c). 

10 ‘‘(16) TENANT BASED.—The term ‘tenant 

11 based’, used with respect to rental assistance, means 

12 assistance that allows an eligible person to select a 

13 housing unit in which such person will live using 

14 rental assistance provided under subtitle C, except 

15 that if necessary to assure that the provision of sup16 portive services to a person participating in a pro17 gram is feasible, a project sponsor may require that 

18 the person live— 

19 ‘‘(A) in a particular structure or unit for 

20 not more than the first year of the participa21 tion; and 

22 ‘‘(B) within a particular geographic area 

23 for the full period of the participation, or the 

24 period remaining after the period referred to in 

25 subparagraph (A). 


rfake on PROD1PC77 with BILLS
12 

•HR 5041 IH 

1 ‘‘(17) TRANSITIONAL HOUSING.—The term 

2 ‘transitional housing’ means housing, the purpose of 

3 which is to facilitate the movement of individuals 

4 and families experiencing homelessness to permanent 

5 housing within 24 months or such longer period as 

6 the Secretary determines necessary. 

7 ‘‘SEC. 402. CONTINUUM OF CARE BOARDS. 

8 ‘‘(a) ESTABLISHMENT.—A continuum of care board 

9 shall be established for a geographic area for one or more 

10 units of general local government as a private nonprofit 

11 organization, or an organization associated with state or 

12 local government or a consortium thereof, which consor13 tium is itself organized under authority of state law. 

14 ‘‘(b) MISSION.—A continuum of care board will lead 

15 a collaborative planning process to design, implement and 

16 evaluate programs, policies and practices to prevent and 

17 help end homelessness. 

18 ‘‘(c) APPOINTMENT OF AN AGENT.— 

19 ‘‘(1) Subject to paragraph (2), a continuum of 

20 care board may designate an agent to— 

21 ‘‘(A) apply for a grant under section 

22 422(b); and 

23 ‘‘(B) receive and distribute grant funds 

24 awarded under subtitle C. 


rfake on PROD1PC77 with BILLS
13 

•HR 5041 IH 

1 ‘‘(2) Any continuum of care board that ap2 points an agent pursuant to paragraph (1) shall 

3 nonetheless retain all of its duties and responsibil4 ities under this title. 

5 ‘‘(d) MEMBERSHIP OF CONTINUUM OF CARE

6 BOARD.— 

7 ‘‘(1) IN GENERAL.—A continuum of care board 

8 established under subsection (a) shall be composed 

9 of persons— 

10 ‘‘(A) from a particular geographic area; 

11 ‘‘(B) not less than 65 percent of whom 

12 are— 

13 ‘‘(i) persons who are experiencing or 

14 have experienced homelessness (with not 

15 fewer than two persons being individuals 

16 who are experiencing or have experienced 

17 homelessness); 

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

19 the diverse subpopulations of persons expe20 riencing homelessness; 

21 ‘‘(iii) persons or representatives of or22 ganizations who provide assistance to the 

23 variety of individuals and families experi24 encing homelessness and those at risk of 

25 homelessness, including entities such as 


rfake on PROD1PC77 with BILLS
14 

•HR 5041 IH 

1 law enforcement and health and mental 

2 health organizations; 

3 ‘‘(iv) members of the business commu4 nity and local workforce investment boards 

5 established under the Workforce Invest6 ment Act of 1998 (29 U.S.C. 2801 et 

7 seq.); 

8 ‘‘(v) members of neighborhood advo9 cacy organizations; and 

10 ‘‘(vi) members of philanthropic orga11 nizations that contribute to preventing and 

12 ending homelessness in the geographic 

13 area of the continuum of care board; and 

14 ‘‘(C) the remainder of whom, but not less 

15 than one individual, are selected from among 

16 government agency officials, particularly those 

17 officials responsible for administering funding 

18 under programs targeted for persons experi19 encing homelessness, and other programs for 

20 which persons experiencing homelessness are el21 igible. 

22 ‘‘(2) WAIVER.—The Secretary may, for good 

23 cause and on a case-by-case basis, waive the require24 ments of section 402(d)(1) as he determines to be 

25 necessary or appropriate. 


rfake on PROD1PC77 with BILLS
15 

•HR 5041 IH 

1 ‘‘(e) COMPOSITION AND ROTATION OF MEMBERSHIP

2 OF BOARD.— 

3 ‘‘(1) COMPOSITION.—To the extent practicable, 

4 all of the individuals, organizations, agencies and 

5 businesses described in subsection (d)(1) shall be 

6 represented on the continuum of care board. 

7 ‘‘(2) ROTATION OF MEMBERSHIP.—The con8 tinuum of care board shall rotate its membership, 

9 upon such terms as designated by the Secretary, to 

10 ensure that individuals and representatives of all 

11 agencies, businesses, and organizations who are de12 scribed in subsection (d)(1) and invested in devel13 oping and implementing strategies to prevent and 

14 help end homelessness are able to participate as de15 cisionmaking members of the continuum of care 

16 board. 

17 ‘‘(f) REMEDIAL ACTION.—If the Secretary finds that 

18 a continuum of care board for a geographic area does not 

19 meet the requirements of this section, the Secretary may 

20 take remedial action to ensure fair distribution of grant 

21 amounts under subtitle C to project sponsors within that 

22 area. Such measures may include designating another 

23 body as a continuum of care board. 

24 ‘‘(g) DUTIES.—A continuum of care board shall— 


rfake on PROD1PC77 with BILLS
16 

•HR 5041 IH 

1 ‘‘(1)(A) design a collaborative process, estab2 lished jointly and complied with by its members, for 

3 evaluating, reviewing, prioritizing, awarding, and 

4 monitoring projects and applications submitted by 

5 project sponsors for funding under subtitle C in such 

6 a manner as to ensure that the project sponsors in7 volved further the goal of preventing homelessness 

8 and helping to end chronic homelessness and pro9 moting self-sufficiency in the geographic area in10 volved; 

11 ‘‘(B)(i) review relevant policies and practices (in 

12 place and planned) of public and private entities in 

13 the geographic area served by the continuum of care 

14 board to determine if the policies and practices fur15 ther or impede the goal described in subparagraph 

16 (A); 

17 ‘‘(ii) in conducting the review, give priority to 

18 the review of— 

19 ‘‘(I) the discharge planning and service 

20 termination policies and practices of publicly 

21 funded facilities or institutions (such as health 

22 care or treatment facilities or institutions, fos23 ter care or youth facilities, or correctional insti24 tutions), and entities carrying out publicly 

25 funded programs and systems of care (such as 


rfake on PROD1PC77 with BILLS
17 

•HR 5041 IH 

1 health care or treatment programs, the pro2 grams of block grants to States for temporary 

3 assistance for needy families established under 

4 part A of title IV of the Social Security Act (42 

5 U.S.C. 601 et seq.), foster care or youth pro6 grams, or correctional programs); 

7 ‘‘(II) the access to programs for which 

8 homeless persons would be eligible; and 

9 ‘‘(III) local policies and practices relating 

10 to zoning and other land use controls, land de11 velopment standards, fees, codes, and their ad12 ministration and enforcement, to help to reduce 

13 regulatory barriers that prevent the reasonable 

14 inclusion and distribution in the geographic 

15 area of persons experiencing homelessness; and 

16 ‘‘(iii) in conducting the review, determine the 

17 modifications and corrective actions that need to be 

18 taken, and by whom, so that the relevant policies 

19 and practices do not stimulate, or prolong, homeless20 ness in the geographic area; 

21 ‘‘(2)(A) require, consistent with the Govern22 ment Performance and Results Act of 1993 (31 

23 U.S.C. 1101 et seq.) and amendments thereto, that 

24 project sponsors who are funded by grants received 

25 under subtitle C implement and maintain an outVerDate Aug 31 2005 02:12 Apr 01, 2006 Jkt 049196 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\H5041.IH H5041

rfake on PROD1PC77 with BILLS
18 

•HR 5041 IH 

1 come based evaluation of their projects that meas2 ures effective and timely delivery of housing or serv3 ices and whether provision of such housing or serv4 ices results in preventing or helping to end homeless5 ness for the persons that such project sponsors 

6 serve; 

7 ‘‘(B) request that States and local governments 

8 who distribute funds under subtitle B submit infor9 mation and comments on the administration of ac10 tivities under subtitle B, to enable the continuum of 

11 care board to plan and design a full continuum of 

12 care for persons experiencing homelessness; 

13 ‘‘(3) provide, consistent with the Government 

14 Performance and Results Act of 1993 and amend15 ments thereto, an independent outcome based eval16 uation of the homeless assistance planning process 

17 of the continuum of care board to measure the per18 formance of the continuum of care board in ending 

19 chronic homelessness and in preventing or helping to 

20 end the homelessness of persons in the geographic 

21 area of the continuum of care board; 

22 ‘‘(4) participate in the Consolidated Plan, and 

23 coordinate with other jurisdictional plans related to 

24 homelessness, including 10-year plans to end chronic 


rfake on PROD1PC77 with BILLS
19 

•HR 5041 IH 

1 homelessness for the geographic area served by the 

2 continuum of care board; and 

3 ‘‘(5) arrange for an annual audit of the finan4 cial records of each project carried out by a project 

5 sponsor funded by a grant received under subtitle C. 

6 ‘‘(h) CONFLICT OF INTEREST.— 

7 ‘‘(1) No member of a continuum of care board 

8 may participate in decisions of the continuum of 

9 care board concerning a grant under subtitle C, or 

10 provision of other financial benefits, to such member 

11 or the organization that such member represents. 

12 ‘‘(2) Nothing in this section shall be construed 

13 to displace conflict of interest or government fair 

14 practices laws, or their equivalent, that govern appli15 cants for grant amounts under subtitle C. 

16 ‘‘(i) HOMELESS MANAGEMENT INFORMATION SYS17 TEM.—In accordance with standards established by the 

18 Secretary, each continuum of care board shall ensure con19 sistent participation by project sponsors in a community20 wide homeless management information system. The con21 tinuum of care board shall ensure the participation for 

22 purposes of collecting unduplicated counts of individuals 

23 experiencing homelessness, analyzing patterns of use of 

24 assistance provided under subtitle C for the geographic 

25 area involved, implementing an effective information and 


rfake on PROD1PC77 with BILLS
20 

•HR 5041 IH 

1 referral system, and providing information for the needs 

2 analyses and funding priorities of continuum of care 

3 boards.’’; 

4 (4) by inserting after section 403 (as redesig5 nated in paragraph (2)) the following: 

6 ‘‘SEC. 404. TECHNICAL ASSISTANCE AND SPECIAL INITIA7 TIVES. 

8 ‘‘(a) TECHNICAL ASSISTANCE.—To aid in effectively 

9 carrying out the provisions of this title, the Secretary shall 

10 make technical assistance available to continuum of care 

11 boards and project sponsors or potential project sponsors. 

12 ‘‘(b) SPECIAL INITIATIVES.—The Secretary may 

13 make funds available under this title for special initiatives 

14 and demonstration programs that would further the pur15 poses of this title. 

16 ‘‘(c) RESERVATION.—The Secretary may reserve not 

17 more than one percent of the funds made available for 

18 any fiscal year for carrying out subtitles B and C, to pro19 vide technical assistance and funding for special initiatives 

20 under subsections (a) and (b). 

21 ‘‘SEC. 405. PERFORMANCE REPORTS AND MONITORING. 

22 ‘‘(a) IN GENERAL.—A continuum of care board shall 

23 submit to the Secretary an annual performance report re24 garding the activities carried out with grant amounts re25 ceived under subtitles B and C in the geographic area 


rfake on PROD1PC77 with BILLS
21 

•HR 5041 IH 

1 served by the continuum of care board, at such time and 

2 in such manner as the Secretary determines to be reason3 able. 

4 ‘‘(b) CONTENT.—The performance report described 

5 in subsection (a) shall— 

6 ‘‘(1) describe the number of persons provided 

7 homelessness prevention assistance and the number 

8 of individuals experiencing homelessness who were 

9 provided emergency shelter, transitional or perma10 nent housing, or supportive services, with the grant 

11 awarded in the fiscal year prior to the fiscal year in 

12 which the report was submitted; 

13 ‘‘(2) estimate the number of persons experi14 encing homelessness in the geographic area served 

15 by the continuum of care board who are eligible for, 

16 but did not receive, services, housing, or other as17 sistance through the programs funded under sub18 titles B and C in the prior fiscal year; 

19 ‘‘(3) indicate the accomplishments achieved 

20 within the geographic area including efforts to co21 ordinate services and programs; 

22 ‘‘(4) assess the consistency and coordination be23 tween the programs funded under subtitles B and C 

24 in the prior fiscal year and the Consolidated Plan 

25 and other jurisdictional plans related to homelessVerDate Aug 31 2005 02:12 Apr 01, 2006 Jkt 049196 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\H5041.IH H5041

rfake on PROD1PC77 with BILLS
22 

•HR 5041 IH 

1 ness, including 10-year plans to end chronic home2 lessness; 

3 ‘‘(5) for each project sponsor funded through a 

4 grant under subtitle c that is within the jurisdiction 

5 of the continuum of care board— 

6 ‘‘(A) include a performance evaluation; 

7 ‘‘(B) include a report, resulting from an 

8 audit conducted under section 402(g)(5), detail9 ing whether the project sponsor has carried out 

10 the record-keeping and reporting requirements 

11 of section 429(b)(8); and 

12 ‘‘(6) provide such other information as the Sec13 retary finds relevant to assessing performance, in14 cluding performance on success measures that are 

15 risk adjusted to factors related to the circumstances 

16 of the population served. 

17 ‘‘(c) MONITORING BY THE SECRETARY.— 

18 ‘‘(1) CONTINUUM OF CARE BOARDS.—At time 

19 intervals determined by the Secretary, the Secretary 

20 shall— 

21 ‘‘(A) ensure that continuum of care boards 

22 have complied with the requirements of sub23 section (b)(5) and section 402(g)(5); 

24 ‘‘(B) require continuum of care boards re25 ceiving funds under subtitle C to establish such 


rfake on PROD1PC77 with BILLS
23 

•HR 5041 IH 

1 fiscal control and fund accounting procedures 

2 as may be necessary to assure the proper dis3 bursal of, and accounting for, Federal funds 

4 awarded to the continuum of care board under 

5 subtitle C in order to ensure that all financial 

6 transactions carried out under subtitle C are 

7 conducted, and records maintained, in accord8 ance with generally accepted accounting prin9 ciples; and 

10 ‘‘(C) for a selected sample of continuum of 

11 care boards receiving funds under subtitle C— 

12 ‘‘(i) ensure that each selected con13 tinuum of care board has satisfactorily car14 ried out the recordkeeping and reporting 

15 requirements of subsections (a) and (b), 

16 section 429(b)(3), and, if applicable, sec17 tion 429(b)(6); and 

18 ‘‘(ii) audit the financial records of 

19 each selected continuum of care board re20 ceiving funds under subtitle C to carry out 

21 section 423(a)(9)(A), using Federal audi22 tors or their designate. 

23 ‘‘(2) PROJECT SPONSORS.—At time intervals 

24 determined by the Secretary, the Secretary shall se25 lect a sample of project sponsors and shall conduct 


rfake on PROD1PC77 with BILLS
24 

•HR 5041 IH 

1 a performance evaluation of each project of each se2 lected project sponsor funded under subtitle C, using 

3 the outcome-based evaluation measures developed by 

4 the appropriate continuum of care board in accord5 ance with section 402(g)(2) and including the meas6 urements described in section 423(a)(9). 

7 ‘‘(d) ACTION BY SECRETARY.—Based on the infor8 mation available to the Secretary, including information 

9 obtained pursuant to subsections (b) and (c), the Sec10 retary may adjust, reduce, or withdraw amounts made 

11 available (or that would otherwise be made available) to 

12 continuum of care boards, or take other action as appro13 priate, except that amounts already properly expended on 

14 eligible activities under this title may not be recaptured 

15 by the Secretary.’’; and 

16 (5) by inserting after section 406 (as redesig17 nated in paragraph (2)) the following: 

18 ‘‘SEC. 407. AUTHORIZATION OF APPROPRIATIONS. 

19 ‘‘(a) IN GENERAL.—There are authorized to be ap20 propriated to carry out this title $1,536,000,000 for fiscal 

21 year 2007 and such sums as may be necessary for each 

22 of fiscal years 2008, 2009, 2010, and 2011. 

23 ‘‘(b) SAMARITAN CHRONIC HOMELESSNESS INITIA24 TIVE.—Of the amounts specified in subsection (a), no 

25 more than $200,000,000 for fiscal year 2007 and such 


rfake on PROD1PC77 with BILLS
25 

•HR 5041 IH 

1 sums as may be necessary for fiscal years 2008, 2009, 

2 2010, and 2011 shall be used for the Samaritan Chronic 

3 Homelessness Initiative authorized under section 425.’’. 

4 SEC. 4. EMERGENCY SHELTER GRANTS PROGRAM. 

5 Subtitle B of title IV of the McKinney Vento Home6 less Assistance Act (42 U.S.C. 11371 et seq.) is amend7 ed— 

8 (1) by striking section 412 (42 U.S.C. 11372) 

9 and inserting the following: 

10 ‘‘SEC. 412. GRANT ASSISTANCE. 

11 ‘‘The Secretary shall, to the extent amounts are ap12 proved in appropriations Acts under section 407, make 

13 grants to States and local governments (and to private 

14 nonprofit organizations providing assistance to persons ex15 periencing homelessness, in the case of grants made with 

16 reallocated amounts) for the purpose of carrying out ac17 tivities described in section 414. 

18 ‘‘SEC. 412A. AMOUNT AND ALLOCATION OF ASSISTANCE. 

19 ‘‘(a) IN GENERAL.—Of the amount appropriated to 

20 carry out title IV for a fiscal year, the Secretary shall allo21 cate nationally not more than 15 percent of such amount 

22 for subtitle B. 

23 ‘‘(b) ALLOCATION.—An entity that receives a grant 

24 under section 412, and serves an area that includes one 

25 or more geographic areas (or portions of such areas) 


rfake on PROD1PC77 with BILLS
26 

•HR 5041 IH 

1 served by continuum of care boards that submit applica2 tions under subtitle C, shall allocate the funds made avail3 able through the grant to carry out activities described 

4 in section 414, in consultation with the continuum of care 

5 boards.’’; 

6 (2) in section 413(b) (42 U.S.C. 11373(b)), by 

7 striking ‘‘amounts appropriated’’ and all that follows 

8 through ‘‘for any’’ and inserting ‘‘amounts appro9 priated under section 407 and made available to 

10 carry out this subtitle for any’’; 

11 (3) by striking section 414 (42 U.S.C. 11374) 

12 and inserting the following: 

13 ‘‘SEC. 414. ELIGIBLE ACTIVITIES. 

14 ‘‘Assistance provided under section 412 may be used 

15 for the following activities: 

16 ‘‘(1) The renovation, major rehabilitation, or 

17 conversion of buildings to be used as emergency 

18 shelters. 

19 ‘‘(2) The provision of essential services, includ20 ing services concerned with employment, health, or 

21 education, family support services for homeless 

22 youth, alcohol or drug abuse prevention or treat23 ment, or mental health treatment, if such essential 

24 services have not been provided by the local govern25 ment during any part of the immediately preceding 


rfake on PROD1PC77 with BILLS
27 

•HR 5041 IH 

1 12 month period, or the use of assistance under this 

2 subtitle would complement the provision of those es3 sential services. 

4 ‘‘(3) Maintenance, operation insurance, provi5 sion of utilities, and provision of furnishings.’’; 

6 (4) by repealing section 417 (42 U.S.C. 11377); 

7 and 

8 (5) by redesignating section 418 (42 U.S.C. 

9 11378) as section 417. 

10 SEC. 5. HOMELESS ASSISTANCE PROGRAM. 

11 Subtitle C of title IV of the McKinney Vento Home12 less Assistance Act (42 U.S.C. 11381 et seq.) is amend13 ed— 

14 (1) by striking the subtitle heading and insert15 ing the following: 

16 ‘‘Subtitle C—Homeless Housing 

17 Program’’. 

18 (2) by striking sections 421 through 423 (42 

19 U.S.C. 11381 et seq.) and inserting the following: 

20 ‘‘SEC. 421. PURPOSES. 

21 ‘‘The purposes of this subtitle are— 

22 ‘‘(1) to promote the implementation of activities 

23 that can prevent vulnerable individuals and families 

24 from becoming homeless; 


rfake on PROD1PC77 with BILLS
28 

•HR 5041 IH 

1 ‘‘(2) to promote the development of transitional 

2 and permanent housing; 

3 ‘‘(3) to provide rental housing assistance to 

4 homeless individuals with disabling conditions and 

5 the families of such individuals; 

6 ‘‘(4) to help eliminate systematic barriers to ac7 cessing federal, state and local programs for which 

8 homeless persons may be eligible; and 

9 ‘‘(5) to encourage and foster self-sufficiency 

10 among homeless individuals. 

11 ‘‘SEC. 422. COMMUNITY HOMELESS ASSISTANCE PROGRAM. 

12 ‘‘(a) PROJECTS.—The Secretary shall make grants to 

13 continuum of care boards to carry out homeless assistance 

14 and prevention projects. 

15 ‘‘(b) APPLICATIONS.— 

16 ‘‘(1) SUBMISSION TO THE SECRETARY.—To re17 ceive a grant under subsection (a), a continuum of 

18 care board shall submit an application to the Sec19 retary at such time and in such manner as the Sec20 retary may require, and containing— 

21 ‘‘(A) the information described in sub22 sections (a) and (b) of section 429; and 

23 ‘‘(B) other information that shall— 

24 ‘‘(i) describe the establishment or des25 ignation and function of the continuum of 


rfake on PROD1PC77 with BILLS
29 

•HR 5041 IH 

1 care board, including the nomination and 

2 selection process of all members of the con3 tinuum of care board; 

4 ‘‘(ii) outline the range of housing and 

5 service programs available to persons expe6 riencing homelessness or imminently at 

7 risk of experiencing homelessness and de8 scribe the unmet needs that remain in the 

9 geographic area for which the continuum 

10 of care board seeks funding regarding— 

11 ‘‘(I) prevention activities; 

12 ‘‘(II) outreach activities to assess 

13 the needs and conditions of persons 

14 experiencing homelessness; and 

15 ‘‘(III) emergency shelters, transi16 tional housing, permanent housing, 

17 and needed supportive services; 

18 ‘‘(iii) identify funds from private and 

19 public sources, other than funds received 

20 under subtitles B and C, that the State, 

21 units of general local government, con22 tinuum of care boards, project sponsors, 

23 and others will use for homelessness pre24 vention, emergency shelter, supportive 

25 services, transitional housing, and permaVerDate Aug 31 2005 02:12 Apr 01, 2006 Jkt 049196 PO 00000 Frm 00029 Fmt 6652 Sfmt 6201 E:\BILLS\H5041.IH H5041

rfake on PROD1PC77 with BILLS
30 

•HR 5041 IH 

1 nent housing, that will be integrated with 

2 the assistance provided under subtitles B 

3 and C; 

4 ‘‘(iv) explain— 

5 ‘‘(I) how the continuum of care 

6 board will meet the housing and serv7 ice needs of individuals and families 

8 experiencing homelessness in the ap9 plicant’s community; and 

10 ‘‘(II) how the continuum of care 

11 board will integrate the plan with the 

12 strategy of the State and units of gen13 eral local government in the geo14 graphic area to prevent homelessness 

15 and end chronic homelessness, includ16 ing, as part of that strategy, a work 

17 plan for the applicable fiscal years; 

18 ‘‘(v) report on the outcome based per19 formance of the homeless programs within 

20 the geographic area served by the con21 tinuum of care board that were funded 

22 under this title in the fiscal year prior to 

23 the fiscal year in which the application is 

24 submitted; 


rfake on PROD1PC77 with BILLS
31 

•HR 5041 IH 

1 ‘‘(vi) include any relevant required 

2 agreements under this subtitle; and 

3 ‘‘(vii) contain a certification of con4 sistency with the Consolidated Plan pursu5 ant to section 403. 

6 ‘‘(2) SELECTION CRITERIA.—The Secretary 

7 shall select continuum of care boards to receive as8 sistance under this subtitle by a national competition 

9 based on criteria established by the Secretary, which 

10 shall include— 

11 ‘‘(A) the need for assistance in the area; 

12 ‘‘(B) the ability and capacity of the con13 tinuum of care board to carry out its duties and 

14 obligations under this subtitle and to effectively 

15 manage the distribution of grant funds; 

16 ‘‘(C) the extent to which the amount of as17 sistance to be provided under this subtitle will 

18 be supplemented with resources from other pub19 lic and private sources; 

20 ‘‘(D) the extent to which the continuum of 

21 care board has demonstrated coordination with 

22 the other Federal, State, local, private, and 

23 other entities serving individuals experiencing 

24 homelessness in the planning and operation of 

25 projects; 


rfake on PROD1PC77 with BILLS
32 

•HR 5041 IH 

1 ‘‘(E) the performance of the continuum of 

2 care board and its projects; and 

3 ‘‘(F) such other factors as the Secretary 

4 determines to be appropriate to carry out this 

5 subtitle in an effective and efficient manner. 

6 ‘‘(3) ANNOUNCEMENT OF AWARDS.—The Sec7 retary shall announce the grants to be made under 

8 subsection (a) for that fiscal year. 

9 ‘‘(4) OBLIGATION, DISTRIBUTION, AND UTILIZA10 TION OF FUNDS.— 

11 ‘‘(A) REQUIREMENTS FOR OBLIGATION.— 

12 ‘‘(i) IN GENERAL.—Not later than 9 

13 months after the announcement referred to 

14 in paragraph (3), each continuum of care 

15 board receiving a grant announced under 

16 paragraph (3) shall, with respect to a 

17 project to be funded through such grant, 

18 meet, or cause the project sponsor to meet, 

19 all requirements for the obligation of funds 

20 for such project, including, to the extent 

21 applicable, site control, matching funds, 

22 and environmental review requirements, 

23 except as provided in clause (ii). 

24 ‘‘(ii) ACQUISITION, REHABILITATION, 

25 OR CONSTRUCTION.—Not later than 15 


rfake on PROD1PC77 with BILLS
33 

•HR 5041 IH 

1 months after the announcement referred to 

2 in paragraph (3), each continuum of care 

3 board or project sponsor seeking the obli4 gation of funds for acquisition of housing, 

5 rehabilitation of housing, or construction 

6 of new housing for a grant announced 

7 under paragraph (3) shall meet all require8 ments for the obligation of those funds, in9 cluding, to the extent applicable, site con10 trol, matching funds, and environmental 

11 review requirements. 

12 ‘‘(iii) EXTENSIONS.—At the discretion 

13 of the Secretary, and in compelling cir14 cumstances, the Secretary may extend the 

15 date by which a continuum of care board 

16 shall meet or cause a project sponsor to 

17 meet the requirements described in clauses 

18 (i) and (ii) if the Secretary determines that 

19 compliance with the requirements was de20 layed due to factors beyond the reasonable 

21 control of the continuum of care board or 

22 project sponsor. Such factors may include 

23 difficulties in obtaining site control for a 

24 proposed project, completing the process of 

25 obtaining secure financing for the project, 


rfake on PROD1PC77 with BILLS
34 

•HR 5041 IH 

1 or completing the technical submission re2 quirements for the project. 

3 ‘‘(B) OBLIGATION.—After a continuum of 

4 care board meets or causes a project sponsor to 

5 meet the requirements described in subpara6 graph (A), the Secretary shall obligate the 

7 funds for the grant involved. 

8 ‘‘(C) EXPENDITURE OF FUNDS.—The Sec9 retary shall establish deadlines for timely ex10 penditure of funds. The Secretary may recap11 ture the funds not expended by such deadlines. 

12 ‘‘(c) NOTIFICATION OF FINAL PRO RATA ESTIMATED

13 NEED AMOUNTS.— 

14 ‘‘(1) NOTICE.—The Secretary shall inform each 

15 continuum of care board, at a time concurrent with 

16 the release of the Notice of Funding Availability for 

17 the grants, of the final pro rata estimated need 

18 amount under this subtitle for the geographic area 

19 represented by the continuum of care board. 

20 ‘‘(2) METHODOLOGY FOR DETERMINING

21 AMOUNT.— 

22 ‘‘(A) Subject to subparagraph (B), the 

23 final pro rata estimated need amount under 

24 paragraph (1) shall be determined using a 

25 methodology selected by Secretary. 


rfake on PROD1PC77 with BILLS
35 

•HR 5041 IH 

1 ‘‘(B) Prior to selecting the methodology 

2 referenced in subparagraph (A), the Secretary 

3 shall notify the public of the proposed method4 ology, provide the public with the opportunity to 

5 comment on such methodology, and consider 

6 such comments in selecting the methodology. 

7 ‘‘(3) COMBINATIONS OR CONSORTIA.—For a 

8 continuum of care board that represents a combina9 tion or consortium of geographic areas, the esti10 mated need amount shall be the sum of the esti11 mated need amounts for the jurisdictions within the 

12 geographic areas represented by the continuum of 

13 care board. 

14 ‘‘SEC. 423. ELIGIBLE ACTIVITIES. 

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

16 to continuum of care boards under section 422 to carry 

17 out homeless assistance and prevention that consist of one 

18 or more of the following eligible activities: 

19 ‘‘(1) Construction of housing. 

20 ‘‘(2) Acquisition, renovation, conversion or re21 habilitation of a structure to provide housing. 

22 ‘‘(3) Leasing of property, or portions of prop23 erty, not owned by the continuum of care board or 

24 project sponsor involved, for use in providing hous25 ing or supportive services. 


rfake on PROD1PC77 with BILLS
36 

•HR 5041 IH 

1 ‘‘(4) Provision of tenant-based rental housing 

2 assistance for eligible persons. 

3 ‘‘(5) Provision of project-based rental housing 

4 assistance for eligible persons. 

5 ‘‘(6) Payment of operating costs for housing 

6 units assisted under this subtitle. 

7 ‘‘(7) Providing services determined by the Sec8 retary (either at the Secretary’s initiative or on the 

9 basis of adequate justification by an applicant) to be 

10 directly relevant to assisting persons experiencing 

11 homelessness to access and retain housing, for both 

12 new projects and projects receiving renewal funding. 

13 ‘‘(8)(A) Payment of administrative costs of the 

14 continuum of care board for planning, administering 

15 grants for, maintaining, and evaluating projects, and 

16 ensuring compliance with homeless management in17 formation system requirements described in section 

18 402(i) may not be more than 6 percent of the total 

19 funds made available through the grant. The project 

20 sponsor may use up to 5 percent of the funds it re21 ceives from the continuum of care board for admin22 istrative costs. 

23 ‘‘(B) For purposes of this paragraph, moni24 toring and evaluating shall include— 


rfake on PROD1PC77 with BILLS
37 

•HR 5041 IH 

1 ‘‘(i) measuring the outcomes of the home2 less assistance planning process of a continuum 

3 of care board for preventing homelessness and 

4 helping to end chronic homelessness; 

5 ‘‘(ii) the effective and timely implementa6 tion of specific projects funded under this sub7 title, relative to projected outcomes; and 

8 ‘‘(iii) in the case of a housing project fund9 ed under this subtitle, compliance with appro10 priate standards of housing quality and habit11 ability as determined by the Secretary. 

12 ‘‘(9) Prevention activities for which a con13 tinuum of care board may use up to 10 percent of 

14 the funds made available through a grant under sec15 tion 422, including— 

16 ‘‘(A) providing financial assistance to indi17 viduals or families who have received eviction 

18 notices, foreclosure notices, or notices of termi19 nation of utility services if, in the case of such 

20 an individual or family— 

21 ‘‘(i) the inability of the individual or 

22 family to make the required payments is 

23 due to a sudden reduction in income; 


rfake on PROD1PC77 with BILLS
38 

•HR 5041 IH 

1 ‘‘(ii) the assistance is necessary to 

2 avoid the eviction, foreclosure, or termi3 nation of services; and 

4 ‘‘(iii) there is a reasonable prospect 

5 that the individual or family will be able to 

6 resume the payments within a reasonable 

7 period of time; and 

8 ‘‘(B) carrying out relocation activities (in9 cluding providing security or utility deposits, 

10 rental assistance for a final month at a loca11 tion, assistance with moving costs, or rental as12 sistance for not more than three months) for 

13 moving into transitional or permanent housing, 

14 individuals, and families that include such indi15 viduals— 

16 ‘‘(i) who lack housing; 

17 ‘‘(ii) who are being discharged from a 

18 publicly funded acute care or long term 

19 care facility, program, or system of care, 

20 or whose services (from such a facility, 

21 program, or system of care) are being ter22 minated; and 

23 ‘‘(iii) who have plans, developed col24 laboratively by the public entities involved 

25 and the individuals and families, for securVerDate Aug 31 2005 02:12 Apr 01, 2006 Jkt 049196 PO 00000 Frm 00038 Fmt 6652 Sfmt 6201 E:\BILLS\H5041.IH H5041

rfake on PROD1PC77 with BILLS
39 

•HR 5041 IH 

1 ing or maintaining housing after any fund2 ing provided under this subtitle is utilized. 

3 ‘‘(b) ELIGIBILITY FOR FUNDS FOR PREVENTION AC4 TIVITIES.—To be eligible to receive grant funds under sec5 tion 422 to carry out the prevention activities described 

6 in subsection (a)(9), a continuum of care board shall sub7 mit an application to the Secretary under section 422 that 

8 shall include a certification in which— 

9 ‘‘(1) the relevant public entities in the geo10 graphic area involved certify compliance with sub11 section (c); and 

12 ‘‘(2) the publicly funded institutions, facilities, 

13 and systems of care in the geographic area certify 

14 that the institutions, facilities, and systems of care 

15 will take, and fund directly, all reasonable measures 

16 to ensure that the institutions, facilities, and sys17 tems of care do not discharge individuals into home18 lessness. 

19 ‘‘(c) SUPPLEMENT, NOT SUPPLANT.—Funds appro20 priated to further the purposes of this title and made 

21 available for prevention activities described in subsection 

22 (a)(9) shall be used to supplement and not supplant other 

23 Federal, State, and local public funds used for homeless24 ness prevention. 

25 ‘‘(d) USE RESTRICTIONS..— 


rfake on PROD1PC77 with BILLS
40 

•HR 5041 IH 

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

2 CONSTRUCTION.—A project that consists of activities 

3 described in paragraph (1) or (2) of subsection (a) 

4 shall be operated for the purpose specified in the ap5 plication submitted for the project under section 422 

6 for not less than 15 years. 

7 ‘‘(2) OTHER ACTIVITIES.—A project that con8 sists of activities described in any of paragraphs (3) 

9 through (9) of subsection (a) shall be operated for 

10 the purpose specified in the application submitted 

11 for the project under section 422 for the duration of 

12 the grant period involved. 

13 ‘‘(3) CONVERSION.—If the project sponsor car14 rying out a project that provides transitional or per15 manent housing submits a request to the continuum 

16 of care board to carry out instead a project for the 

17 direct benefit of very low income persons, and the 

18 continuum of care board determines that the initial 

19 project is no longer needed to provide transitional or 

20 permanent housing, the continuum of care board 

21 may approve the project described in the request 

22 and authorize the project sponsor to carry out that 

23 project. 

24 ‘‘(e) RENTAL ASSISTANCE.— 

25 ‘‘(1) TENANT-BASED RENTAL ASSISTANCE.— 


rfake on PROD1PC77 with BILLS
41 

•HR 5041 IH 

1 ‘‘(A) AUTHORITY.—Grants under section 

2 422 may be used to provide tenant-based rental 

3 assistance for eligible persons in accordance 

4 with this paragraph. 

5 ‘‘(B) HOUSING ASSISTANCE.—An eligible 

6 person on behalf of whom assistance is provided 

7 under this subtitle shall select the unit in which 

8 such person will live using rental assistance 

9 under this subtitle; except that where necessary 

10 to assure that the provision of supportive serv11 ices to persons is feasible, a continuum of care 

12 board or project sponsor may require that a 

13 person participating in the program live (i) in 

14 a particular structure or unit for up to the first 

15 year of participation, and (ii) within a par16 ticular geographic area for the full period of 

17 participation or the period remaining after the 

18 period referred to in subclause (i). 

19 ‘‘(C) AMOUNT OF ASSISTANCE.—The con20 tract with a continuum of care board for assist21 ance under this subtitle shall be for a term of 

22 5 years. Each contract shall provide that the 

23 continuum of care board shall receive aggregate 

24 amounts not to exceed the appropriate existing 

25 housing fair market rent limitation under secVerDate Aug 31 2005 02:12 Apr 01, 2006 Jkt 049196 PO 00000 Frm 00041 Fmt 6652 Sfmt 6201 E:\BILLS\H5041.IH H5041

rfake on PROD1PC77 with BILLS
42 

•HR 5041 IH 

1 tion 8(c) of the United States Housing Act of 

2 1937 in effect at the time the application is ap3 proved. At the option of the continuum of care 

4 board and subject to the availability of such 

5 amounts, the continuum of care board may re6 ceive in any year (i) up to 25 percent of such 

7 amounts or (ii) such higher percentage as the 

8 Secretary may approve upon a demonstration 

9 satisfactory to the Secretary that the con10 tinuum of care board has entered into firm fi11 nancial commitments to ensure that the hous12 ing assistance described in the application will 

13 be provided for the full term of the contract. 

14 Any amounts not needed for a year may be 

15 used to increase the amount available in subse16 quent years. 

17 ‘‘(2) PROJECT-BASED RENTAL ASSISTANCE.— 

18 ‘‘(A) AUTHORITY.—Grants under section 

19 422 may be used to provide project-based rental 

20 assistance for eligible persons in accordance 

21 with this subsection. 

22 ‘‘(B) HOUSING ASSISTANCE.—Assistance 

23 under this subtitle shall be provided pursuant 

24 to a contract between the continuum of care 

25 board or the project sponsor and an owner of 


rfake on PROD1PC77 with BILLS
43 

•HR 5041 IH 

1 an existing structure. The contract shall provide 

2 that rental assistance payments shall be made 

3 to the owner and that the units in the structure 

4 shall be occupied by eligible persons for not less 

5 than the term of the contract. 

6 ‘‘(C) TERM OF CONTRACT AND AMOUNT OF

7 ASSISTANCE.— 

8 ‘‘(i) TERM OF CONTRACT.—Each con9 tract under subparagraph (B) shall be for 

10 a term of 5 years, and the owner shall 

11 have an option to renew the assistance for 

12 an additional 5-year term, subject to the 

13 availability of amounts provided in appro14 priations Acts; except that if an expendi15 ture of at least $3,000 for each unit (in16 cluding its prorated share of work on com17 mon areas or systems) is required to make 

18 the structure decent, safe, and sanitary, 

19 and the owner agrees to carry out the re20 habilitation with resources other than as21 sistance under this subtitle within 12 

22 months of notification of grant approval, 

23 the contract shall be for a term of 10 

24 years. 


rfake on PROD1PC77 with BILLS
44 

•HR 5041 IH 

1 ‘‘(ii) AMOUNT OF ASSISTANCE.—Each 

2 contract shall provide that the recipient 

3 shall receive aggregate amounts not to ex4 ceed the appropriate existing housing fair 

5 market rental under section 8(c)(1) of the 

6 United States Housing Act of 1937 in ef7 fect at the time the application is ap8 proved. Any amounts not needed for a year 

9 may be used to increase the amount avail10 able in subsequent years. 

11 ‘‘(3) TENANT RENT.—In the case of a project 

12 that includes tenant-based or project-based rental 

13 assistance, each tenant shall pay as rent an amount 

14 determined in accordance with the provisions of sec15 tion 3(a)(1) of the United States Housing Act of 

16 1937 (42 U.S.C. 1437a(a)(1)). 

17 ‘‘SEC. 424. TERMINATION OF TENANCY. 

18 ‘‘(a) TERMINATION OF TENANCY IN PERMANENT

19 HOUSING.—A project sponsor shall not terminate the ten20 ancy or refuse to renew the lease of a tenant living in per21 manent housing funded by a grant under this subtitle ex22 cept for serious or repeated violations of the terms and 

23 conditions of the lease, for a violation of applicable Fed24 eral, State, or local law, or other good cause. Any termi25 nation or refusal to renew must be preceded by not less 


rfake on PROD1PC77 with BILLS
45 

•HR 5041 IH 

1 than 30 days by the project sponsor’s service upon the 

2 tenant of a written notice specifying the grounds for the 

3 action. 

4 ‘‘(b) TERMINATION OF TENANCY IN TRANSITIONAL

5 HOUSING.—If an individual or family occupying transi6 tional housing funded under this subtitle violates signifi7 cant program requirements, or violates applicable Federal, 

8 State, or local law, the project sponsor may terminate the 

9 housing assistance in accordance with a formal process es10 tablished by the project sponsor that recognizes the rights 

11 of individuals receiving such assistance to due process of 

12 law, which may include a hearing. 

13 ‘‘SEC. 425. INCENTIVES TO CREATE SAMARITAN CHRONIC 

14 HOMELESSNESS INITIATIVE. 

15 ‘‘(a) IN GENERAL.—In making grants to continuum 

16 of care boards under section 422, the Secretary shall pro17 vide the incentives described in subsection (b) to promote 

18 the creation of new permanent housing units through the 

19 construction, acquisition and rehabilitation, leasing , or 

20 provision of rental assistance of permanent housing units, 

21 that are owned or leased by a project sponsor or other 

22 independent entity who entered into a contract with a 

23 project sponsor, for chronically homeless persons. 

24 ‘‘(b) ASSISTANCE FOR CHRONICALLY HOMELESS

25 PERSONS.—A continuum of care board that receives asVerDate Aug 31 2005 02:12 Apr 01, 2006 Jkt 049196 PO 00000 Frm 00045 Fmt 6652 Sfmt 6201 E:\BILLS\H5041.IH H5041

rfake on PROD1PC77 with BILLS
46 

•HR 5041 IH 

1 sistance under section 422 to implement a project that in2 volves the construction, acquisition and rehabilitation, 

3 leasing, or provision of rental assistance of permanent 

4 housing units described in subsection (a) for chronically 

5 homeless persons shall also receive, as part of the grant, 

6 a bonus in an amount to be determined by the Secretary 

7 to carry out permanent housing activities with supportive 

8 services, as determined by the Secretary, for chronically 

9 homeless persons. 

10 ‘‘SEC. 426. REPAYMENT OF ASSISTANCE AND PREVENTION 

11 OF UNDUE BENEFITS. 

12 ‘‘(a) REPAYMENT.—If assistance is provided under 

13 section 422 to carry out a project that consists of activities 

14 described in paragraph (1) or (2) of subsection (a) and 

15 the project ceases to provide transitional or permanent 

16 housing— 

17 ‘‘(1) earlier than 10 years after operation of the 

18 project begins, the continuum of care board (or the 

19 project sponsor receiving funds from the continuum 

20 of care board) shall repay 100 percent of the assist21 ance; or 

22 ‘‘(2) not earlier than 10 years, but earlier than 

23 15 years, after operation of the project begins, the 

24 continuum of care board (or the project sponsor re25 ceiving funds from the continuum of care board) 


rfake on PROD1PC77 with BILLS
47 

•HR 5041 IH 

1 shall repay 20 percent of the assistance for each of 

2 the years in the 15 year period for which the project 

3 fails to provide that housing. 

4 ‘‘(b) PREVENTION OF UNDUE BENEFITS.—Except as 

5 provided in subsection (c) if any property is used for a 

6 project that receives assistance under subsection (a) and 

7 consists of activities described in paragraph (1) or (2) of 

8 subsection (a), and the sale or other disposition of the 

9 property occurs before the expiration of the 15 year period 

10 beginning on the date that operation of the project begins, 

11 the continuum of care board (or the project sponsor receiv12 ing funds from the continuum of care board) who received 

13 the assistance shall comply with such terms and conditions 

14 as the Secretary may prescribe to prevent the continuum 

15 of care board (or a project sponsor receiving funds from 

16 the continuum of care board) from unduly benefiting from 

17 such sale or disposition. 

18 ‘‘(c) EXCEPTION.—A continuum of care board (or a 

19 project sponsor receiving funds from the continuum of 

20 care board) shall not be required to make the repayments, 

21 and comply with the terms and conditions, required under 

22 subsection (a) or (b) if— 

23 ‘‘(1) the sale or disposition of the property used 

24 for the project results in the use of the property for 

25 the direct benefit of very low income persons; or 


rfake on PROD1PC77 with BILLS
48 

•HR 5041 IH 

1 ‘‘(2) all of the proceeds of the sale or disposi2 tion are used to provide transitional or permanent 

3 housing meeting the requirements of this subtitle.’’; 

4 (3) by redesignating section 424 (42 U.S.C. 

5 11384) as section 427; 

6 (4) in section 425 (42 U.S.C. 11385)— 

7 (A) by redesignating this section as section 

8 428; 

9 (B) by striking subsection (c) and insert10 ing the following: 

11 ‘‘(c) SERVICES.—Supportive services may include 

12 such services as determined by the Secretary (either at 

13 the Secretary’s initiative or on the basis of adequate jus14 tification by an applicant) to be directly relevant to assist15 ing persons experiencing homelessness to access and re16 tain housing.’’; 

17 (5) in section 426 (42 U.S.C. 11386)— 

18 (A) by redesignating this section as section 

19 429; 

20 (B) in subsection (a)— 

21 (i) in paragraph (1), by striking ‘‘this 

22 subtitle’’ and inserting ‘‘section 422’’; 

23 (ii) in paragraph (2)— 

24 (I) by striking subparagraph (B) 

25 and inserting the following: 


rfake on PROD1PC77 with BILLS
49 

•HR 5041 IH 

1 ‘‘(B) a description of the size and charac2 teristics of the population that would occupy 

3 housing units or receive supportive services 

4 under this subtitle;’’; and 

5 (II) in subparagraph (E), by 

6 striking ‘‘in the case of projects as7 sisted under this title that do not re8 ceive assistance under such sections,’’; 

9 and 

10 (iii) in paragraph (3), in the last sen11 tence, by striking ‘‘recipient’’ and inserting 

12 ‘‘continuum of care board (or a project 

13 sponsor receiving funds from the con14 tinuum of care board)’’; 

15 (C) by striking subsections (b) and (c) and 

16 inserting: 

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

18 not provide assistance for a proposed project under this 

19 subtitle unless the continuum of care board involved 

20 agrees to— 

21 ‘‘(1) ensure the operation of the project in ac22 cordance with the provisions of this subtitle; 

23 ‘‘(2) conduct ongoing monitoring to ensure that 

24 homeless persons are not systematically denied ac25 cess to programs for which they may be eligible; 


rfake on PROD1PC77 with BILLS
50 

•HR 5041 IH 

1 ‘‘(3) monitor and report to the Secretary on the 

2 progress of the project; 

3 ‘‘(4) develop and implement procedures to en4 sure— 

5 ‘‘(A) the confidentiality of records per6 taining to any individual provided family vio7 lence prevention or treatment services through 

8 the project; and 

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

10 family violence shelter project assisted under 

11 this subtitle will not be made public, except 

12 with written authorization of the person respon13 sible for the operation of such project; 

14 ‘‘(5) involve homeless individuals and families, 

15 to the maximum extent practicable, through employ16 ment, volunteer services, or otherwise, in con17 structing, rehabilitating, maintaining, and operating 

18 the project assisted under this subtitle and in pro19 viding supportive services for the project; 

20 ‘‘(6) establish such fiscal control and fund ac21 counting procedures as may be necessary to assure 

22 the proper disbursal of, and accounting of, such 

23 funds in order to ensure that all financial trans24 actions carried out with such funds are conducted, 


rfake on PROD1PC77 with BILLS
51 

•HR 5041 IH 

1 and records maintained, in accordance with gen2 erally accepted accounting principles; 

3 ‘‘(7) ensure, to the extent practicable, that any 

4 permanent housing that is created under a grant 

5 under this subtitle is located in a mixed income envi6 ronment; 

7 ‘‘(8) require each project sponsor who is funded 

8 by a grant received under this subtitle to establish 

9 such fiscal control and fund accounting procedures 

10 as may be necessary to assure the proper disbursal 

11 of, and accounting for, Federal funds received by the 

12 project sponsor under this subtitle in order to ensure 

13 that all financial transactions carried out under this 

14 subtitle are conducted, and records maintained, in 

15 accordance with generally accepted accounting prin16 ciples; and 

17 ‘‘(9) comply with such other terms and condi18 tions as the Secretary may establish to carry out 

19 this subtitle in an effective and efficient manner.’’; 

20 (D) by redesignating subsection (d) as sub21 section (c), and in the first sentence, by striking 

22 ‘‘recipient’’ and inserting ‘‘project sponsor’’; 

23 (E) by striking subsection (e); 


rfake on PROD1PC77 with BILLS
52 

•HR 5041 IH 

1 (F) by redesignating subsections (f), (g), 

2 and (h), as subsections (d), (e), and (f), respec3 tively; 

4 (G) in subsection (e) (as redesignated in 

5 subparagraph (E)), in the first sentence, by 

6 striking ‘‘recipient’’ each place it appears and 

7 inserting ‘‘continuum of care board or project 

8 sponsor’’; 

9 (H) by striking subsection (i); and 

10 (I) by redesignating subsection (j) as sub11 section (g); 

12 (6)(A) by repealing sections 427 and 429 (42 

13 U.S.C.11387, 11389); and 

14 (B) by redesignating section 428 (42 U.S.C. 

15 11388) as section 436; and 

16 (7) by inserting after section 429, as redesig17 nated, the following: 

18 ‘‘SEC. 430. MATCHING FUNDING. 

19 ‘‘ A recipient of a grant under this subtitle shall sup20 plement the amounts provided in the grants, in cash from 

21 any source, in an amount equal to not less than 25 percent 

22 of the Federal funds provided under the grant. 


rfake on PROD1PC77 with BILLS
53 

•HR 5041 IH 

1 ‘‘SEC. 431. ALLOCATION AMOUNTS AND INCENTIVES FOR 

2 SPECIFIC ELIGIBLE ACTIVITIES. 

3 ‘‘(a) ANNUAL PORTION OF APPROPRIATED AMOUNT

4 AVAILABLE.—From the amount made available to carry 

5 out this subtitle for a fiscal year, a portion equal to not 

6 less than 30 percent of the sums made available to each 

7 continuum of care board for that fiscal year shall be used 

8 for housing activities, exclusive of the Samaritan Chronic 

9 Homelessness Initiative under section 425, to develop and 

10 sustain permanent housing, including operating costs and 

11 leasing and rental housing assistance, in order to help cre12 ate and sustain affordable permanent housing for home13 less individuals with disabling conditions and homeless 

14 families that include such an individual who is an adult. 

15 ‘‘(b) FUNDING FOR ACQUISITION, CONSTRUCTION, 

16 AND REHABILITATION OF PERMANENT OR TRANSITIONAL

17 HOUSING.—Nothing in this title shall be construed to es18 tablish a limit on the amount of funding that an applicant 

19 may request under this subtitle for acquisition, construc20 tion, or rehabilitation activities for the development of per21 manent housing or transitional housing. 

22 ‘‘SEC. 432. TREATMENT OF PREVIOUSLY OBLIGATED 

23 AMOUNTS. 

24 ‘‘Notwithstanding the amendment or repeal of any 

25 provision of law by the Homeless Assistance Consolidation 

26 Act of 2006, any amounts appropriated to carry out the 


rfake on PROD1PC77 with BILLS
54 

•HR 5041 IH 

1 provisions so amended or repealed that are obligated be2 fore the effective date of the Homeless Assistance Consoli3 dation Act of 2006 shall be used in the manner provided, 

4 and subject to any requirements and agreements entered 

5 into, under such provisions as such provisions were in ef6 fect immediately before such effective date. 

7 ‘‘SEC. 433. APPEAL PROCEDURE. 

8 ‘‘(a) IN GENERAL.—With respect to funding under 

9 this subtitle, if certification of consistency with the Con10 solidated Plan or other jurisdictional plans related to 

11 homelessness, including 10-year plans to end chronic 

12 homelessness, pursuant to section 403 is withheld from 

13 an applicant who has submitted an application for that 

14 certification, such applicant may appeal such decision to 

15 the Secretary. 

16 ‘‘(b) PROCEDURE.—The Secretary shall establish a 

17 procedure to process the appeals described in subsection 

18 (a). 

19 ‘‘(c) DETERMINATION.—Not later than 45 days after 

20 the date of receipt of an appeal described in subsection 

21 (a), the Secretary shall determine if certification was un22 reasonably withheld. If such certification was unreason23 ably withheld, the Secretary shall review such application 

24 and determine if such applicant shall receive funding 

25 under this subtitle. 


rfake on PROD1PC77 with BILLS
55 

•HR 5041 IH 

1 ‘‘SEC. 434. NONDISCRIMINATION, PREFERENCES FOR PER2 SONS WITH SPECIFIC DISABLING CONDI3 TIONS AND GENDER-SPECIFIC ACTIVITIES. 

4 ‘‘(a) NONDISCRIMINATION.—No person in the United 

5 States shall on the grounds of race, color, national origin, 

6 religion, or sex, be excluded from participation in, be de7 nied the benefits of, or be subjected to discrimination 

8 under any program or activity funded in whole or in part 

9 with funds made available under this title. Any prohibition 

10 against discrimination on the basis of age under the Age 

11 Discrimination Act of 1975 (42 U.S.C. 6101 et seq.), or 

12 with respect to an otherwise qualified individual with a 

13 disability as provided in section 504 of the Rehabilitation 

14 Act of 1973 (29 U.S.C. 794) shall also apply to any such 

15 program or activity. 

16 ‘‘(b) PREFERENCES FOR PERSONS WITH SPECIFIC

17 DISABLING CONDITIONS.—All homeless assistance and 

18 prevention activities funded under this title serving indi19 viduals with disabling conditions must be available to all 

20 such individuals without regard to their type of disability, 

21 except that a preference for individuals with specific types 

22 of disabling conditions can be provided in activities funded 

23 under this title if— 

24 ‘‘(1) services appropriate for that population 

25 are provided; 


rfake on PROD1PC77 with BILLS
56 

•HR 5041 IH 

1 ‘‘(2) serving this population in this manner is 

2 necessary to provide qualified homeless individuals 

3 with a disabling condition and families that include 

4 such an adult individual housing, aid, benefits, or 

5 services that are as effective as those provided to 

6 others; and 

7 ‘‘(3) such homeless assistance and prevention 

8 activities are open to all otherwise eligible individ9 uals with a disabling condition and families that in10 clude such an adult individual who may benefit from 

11 the services provided. 

12 ‘‘(c) GENDER-SPECIFIC ACTIVITIES.—This title shall 

13 not be construed to prohibit any project sponsor from 

14 maintaining or constructing separate living facilities or 

15 restroom facilities for the different sexes or offering gen16 der-specific assistance in order to protect personal safety, 

17 privacy, or modesty. 

18 ‘‘(d) RENEWALS.—Notwithstanding any other provi19 sion of this subtitle, the Secretary may provide renewal 

20 grants under this subtitle for rental assistance projects 

21 that— 

22 ‘‘(1) were funded under the authority of Parts 

23 I, II, III and IV of Subtitle F of this title as it ex24 isted immediately prior to enactment of the Home25 less Assistance Consolidation Act of 2006; and 


rfake on PROD1PC77 with BILLS
57 

•HR 5041 IH 

1 ‘‘(2) are designed and carried out to exclusively 

2 serve persons who are seriously mentally ill; have 

3 chronic problems with alcohol, drugs, or both; or 

4 have acquired immunodeficiency syndrome and re5 lated diseases. 

6 ‘‘SEC. 435. ENVIRONMENTAL REVIEW. 

7 ‘‘For purposes of environmental review, assistance 

8 and projects under this title shall be treated as assistance 

9 for special projects that are subject to section 305(c) of 

10 the Multifamily Housing Property Disposition Reform Act 

11 of 1994, and shall be subject to the regulations issued by 

12 the Secretary to implement such section.’’. 

13 SEC. 6. REPEALS AND CONFORMING AMENDMENTS. 

14 (a) REPEALS.—Subtitles D, E, F, and G of title IV 

15 of the McKinney Vento Homeless Assistance Act (42 

16 U.S.C. 11391 et seq., 11401 et seq., 11403 et seq., and 

17 11408 et seq.) are repealed. 

18 (b) CONFORMING AMENDMENTS.—Section 403(l) of 

19 the McKinney Vento Homeless Assistance Act, as redesig20 nated in section 4(2), is amended— 

21 (1) by striking ‘‘current housing affordability 

22 strategy’’ and inserting ‘‘Consolidated Plan’’; and 

23 (2) by inserting before the comma the following: 

24 ‘‘(referred to in that section as a ’’comprehensive 

25 housing affordability strategy‘‘)’’. 


rfake on PROD1PC77 with BILLS
58 

•HR 5041 IH 

1 SEC. 7. EFFECTIVE DATE. 

2 This Act shall take effect one year after the date of 

3 enactment. 

Æ 


rfake on PROD1PC77 with BILLS