II

105TH CONGRESS

1ST SESSION S. 1071

To facilitate the effective and efficient management of the homeless assistance

programs of the Department of Housing and Urban Development, including the merger of such programs into one performance fund, and for

other purposes.

IN THE SENATE OF THE UNITED STATES

JULY 25, 1997

Mr. D’AMATO (by request) introduced the following bill; which was read twice

and referred to the Committee on Banking, Housing, and Urban Affairs

A BILL

To facilitate the effective and efficient management of the

homeless assistance programs of the Department of

Housing and Urban Development, including the merger

of such programs into one performance fund, and for

other purposes.

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

3 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

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

5 ‘‘Homelessness Assistance and Management Reform Act

6 of 1997’’.

7 (b) TABLE OF CONTENTS.
2

S 1071 IS

Sec. 1. Short title and table of contents.

TITLE I—HOMELESS ASSISTANCE PERFORMANCE FUND

Sec. 2. Findings and purposes.

Sec. 3. Establishment of the homeless assistance performance fund.

Sec. 4. Repeal and savings provisions.

Sec. 5. Implementation.

Sec. 6. Report.

Sec. 7. Conforming changes to table of contents.

TITLE II—MANAGEMENT IMPROVEMENTS: HOME AND HOPE FOR

HOMEOWNERSHIP OF SINGLE FAMILY HOMES PROGRAMS

Sec. 11. Determination of low-income eligibility for HOME homeownership assistance.

Sec. 12. Stabilization of HOME funding thresholds and revision of timing requirements for notifications and submissions.

Sec. 13. Determination of HOME match on program year basis.

Sec. 14. Tenant and participant protections under the HOME program.

Sec. 15. Eligibility of private property under the HOPE for homeownership of

single family homes program.

1 TITLE I—HOMELESS ASSISTANCE

2 PERFORMANCE FUND

3 SEC. 2. FINDINGS AND PURPOSES.

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

5 (1) more Americans are homeless than at any

6 time since the Great Depression;

7 (2) the homeless population across the Nation

8 is diverse and its characteristics differ by locality,

9 thereby placing localities in the best position to de10 termine the homeless needs for their communities;

11 (3) the different needs within the homeless pop12 ulation call for a continuum of care system which

13 encompasses the need for outreach and assessment,

14 emergency assistance, transitional housing and serv15 ices (where needed), and permanent housing or per-
3

S 1071 IS

1 manent supportive housing to help homeless individ2 uals become more self-sufficient; and

3 (4) the separate Federal programs designed to

4 solve specific homeless problems have different dis5 tribution mechanisms, rules, and reporting require6 ments that—

7 (A) exceed the resources available to the

8 Secretary, States and local governments, and

9 nonprofit homeless providers;

10 (B) restrict the flexibility of communities

11 to fashion comprehensive homeless assistance

12 systems that meet the needs of homeless indi13 viduals in their areas;

14 (C) result in unpredictable funding

15 streams that hinder the ability of communities

16 and service providers to plan, develop, and im17 plement comprehensive systems to assist home18 less individuals and families; and

19 (D) impede the integration and coordina20 tion of Federal, State, and local government

21 and private for-profit resources available within

22 a community.

23 (b) PURPOSES.—The purposes of this title are to fa24 cilitate the effective and efficient management of HUD’s

25 homeless assistance programs by—
4

S 1071 IS

1 (1) reducing and preventing homelessness by

2 supporting the creation and maintenance of commu3 nity-based, comprehensive systems dedicated to re4 turning families and individuals to self-sufficiency;

5 (2) reorganizing the homeless housing assist6 ance authorities under the Stewart B. McKinney

7 Homeless Assistance Act into a Homeless Assistance

8 Performance Fund;

9 (3) assisting States and local governments, in

10 partnership with private nonprofit service providers,

11 to use homeless funding more efficiently and effec12 tively;

13 (4) simplifying and making more flexible the

14 provision of Federal homeless assistance;

15 (5) maximizing a community’s ability to imple16 ment a coordinated, comprehensive system for pro17 viding assistance to homeless families and individ18 uals;

19 (6) making more efficient and equitable the

20 manner in which the Secretary distributes homeless

21 assistance;

22 (7) reducing the Federal role in local decision23 making for homeless assistance programs;
5

S 1071 IS

1 (8) reducing the costs to governmental jurisdic2 tions and private nonprofit organizations in applying

3 for and using assistance; and

4 (9) advancing the goal of meeting the needs of

5 the homeless population through mainstream pro6 grams and establishing continuum of care systems

7 necessary to achieve that goal.

8 SEC. 3. ESTABLISHMENT OF THE HOMELESS ASSISTANCE

9 PERFORMANCE FUND.

10 Title IV of the Stewart B. McKinney Homeless As11 sistance Act is amended by striking the title heading and

12 all that follows through the end of the title and inserting

13 the following:

14 ‘‘TITLE IV—HOMELESS ASSIST15 ANCE PERFORMANCE FUND

16 ‘‘SEC. 401. DEFINITIONS.

17 For purposes of this title the following definitions

18 shall apply—

19 ‘‘(1) ALLOCATION UNIT OF GENERAL LOCAL

20 GOVERNMENT.—

21 ‘‘(A) IN GENERAL.—The term ‘allocation

22 unit of general local government’ means a met23 ropolitan city or an urban county.

24 ‘‘(B) CONSORTIA.—The term ‘allocation

25 unit of general local government’ may include a
6

S 1071 IS

1 consortium of geographically contiguous metro2 politan cities and urban counties, if the Sec3 retary determines that the consortium—

4 ‘‘(i) has sufficient authority and ad5 ministrative capability to carry out the

6 purposes of this title on behalf of its mem7 ber jurisdictions; and

8 ‘‘(ii) will, according to a written cer9 tification by the State (or States, if the

10 consortium includes jurisdictions in more

11 than one State), direct its activities to the

12 implementation of a continuum of care sys13 tem within the State or States.

14 ‘‘(2) APPLICANT.—The term ‘applicant’ means

15 a grantee submitting an application under section

16 403.

17 ‘‘(3) CONSOLIDATED PLAN.—The term ‘consoli18 dated plan’ means the single comprehensive plan

19 that the Secretary prescribes for submission by ju20 risdictions that consolidates and fulfills the require21 ments of—

22 ‘‘(A) the comprehensive housing afford23 ability strategy under title I of the Cranston24 Gonzalez National Affordable Housing Act;
7

S 1071 IS

1 ‘‘(B) the community development plan

2 under section 104 of the Housing and Commu3 nity Development Act of 1974; and

4 ‘‘(C) the submission requirements for for5 mula funding under—

6 ‘‘(i) the Community Development

7 Block Grant program (authorized by title I

8 of the Housing and Community Develop9 ment Act of 1974);

10 ‘‘(ii) the HOME program (authorized

11 by title II of the Cranston-Gonzalez Na12 tional Affordable Housing Act);

13 ‘‘(iii) the Homeless Assistance Per14 formance Fund (authorized under this

15 title); and

16 ‘‘(iv) the AIDS Housing Opportunity

17 Act (authorized by subtitle D of title VIII

18 of the Cranston-Gonzalez National Afford19 able Housing Act).

20 A jurisdiction’s consolidated plan shall be coordi21 nated and consistent with a public housing agency’s

22 five-year comprehensive plan, if any, required under

23 section 14(e) of the United States Housing Act of

24 1937.
8

S 1071 IS

1 ‘‘(4) CONTINUUM OF CARE SYSTEM.—A ‘contin2 uum of care system’ is a system developed by a local

3 or State homeless assistance board. The system shall

4 include—

5 ‘‘(A) a system of outreach and assessment,

6 including drop-in centers, 24-hour hotlines,

7 counselors, and other activities designed to en8 gage homeless individuals and families, bring

9 them into the continuum of care system, and

10 determine their individual housing and service

11 needs;

12 ‘‘(B) emergency shelters with essential

13 services to ensure that homeless individuals and

14 families receive shelter;

15 ‘‘(C) transitional housing with appropriate

16 supportive services to help ensure that homeless

17 individuals and families are prepared to make

18 the transition to increased responsibility and

19 permanent housing;

20 ‘‘(D) permanent housing, or permanent

21 supportive housing, to help meet the long-term

22 housing needs of homeless individuals and fami23 lies;

24 ‘‘(E) coordination between assistance pro25 vided under this title and assistance provided
9

S 1071 IS

1 under other Federal, State, and local programs

2 that may be used to assist homeless individuals

3 and families, including both targeted homeless

4 assistance programs and other programs ad5 ministered by the Departments of Veterans Af6 fairs, Labor, Health and Human Services, and

7 Education; and

8 ‘‘(F) a system of referrals for subpopula9 tions of the homeless (such as homeless veter10 ans, families with children, battered spouses,

11 persons with mental illness, persons who have

12 chronic problems with alcohol, drugs, or both,

13 persons with other chronic health problems, and

14 persons who have acquired immunodeficiency

15 syndrome and related diseases) to the appro16 priate agencies, programs, or services (including

17 health care, job training, and income support)

18 necessary to meet their needs.

19 ‘‘(5) GRANTEE.—The term ‘grantee’ means—

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

21 government or insular area that administers a

22 grant under section 408(b)(1);

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

24 government or insular area that designates a

25 public agency or a private nonprofit organiza-
10

S 1071 IS

1 tion (or a combination of such organizations) to

2 administer grant amounts under section

3 408(b)(2);

4 ‘‘(C) a State or a private nonprofit organi5 zation designated by the Secretary to admin6 ister grant amounts under section

7 408(b)(3)(A);

8 ‘‘(D) a private nonprofit organization re9 ceiving grant amounts distributed by the Sec10 retary under section 408(b)(3)(B);

11 ‘‘(E) a State administering a grant under

12 section 408(c)(1)(A);

13 ‘‘(F) a unit of general local government re14 ceiving a grant from the Secretary under sec15 tion 408(c)(4)(A);

16 ‘‘(G) a public agency or private nonprofit

17 organization (or a combination of such organi18 zations) designated by a unit of general local

19 government to administer a grant from the Sec20 retary under section 408(c)(4)(B); or

21 ‘‘(H) a private nonprofit organization re22 ceiving a grant from the Secretary under sec23 tion 408(c)(4)(C).
11

S 1071 IS

1 ‘‘(6) HOMELESS INDIVIDUAL.—The term

2 ‘homeless individual’ has the same meaning as in

3 section 103 of this Act.

4 ‘‘(7) INSULAR AREA.—The term ‘insular area’

5 means the Virgin Islands, Guam, American Samoa,

6 and the Northern Mariana Islands.

7 ‘‘(8) LOCAL HOMELESS ASSISTANCE BOARD.—

8 The term ‘local homeless assistance board’ means

9 the board established for applicants and grantees

10 under section 409(c) or 409(e).

11 ‘‘(9) LOW-DEMAND SERVICES AND REFER12 RALS.—The term ‘low-demand services and referrals’

13 means the provision of health care, mental health,

14 substance abuse, and other supportive services and

15 referrals for services in a non-coercive manner,

16 which may include medication management, edu17 cation, counseling, job training, and assistance in

18 obtaining entitlement benefits and in obtaining other

19 supportive services, including mental health and sub20 stance abuse treatment.

21 ‘‘(10) METROPOLITAN CITY.—The term ‘metro22 politan city’ has the same meaning as in section

23 102(a) of the Housing and Community Development

24 Act of 1974.
12

S 1071 IS

1 ‘‘(11) PERSON WITH DISABILITIES.—The term

2 ‘person with disabilities’ means a person who—

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

4 223 of the Social Security Act;

5 ‘‘(B) is determined to have, as determined

6 by the Secretary, a physical, mental, or emo7 tional impairment which—

8 ‘‘(i) is expected to be of long-contin9 ued and indefinite duration;

10 ‘‘(ii) substantially impedes his or her

11 ability to live independently; and

12 ‘‘(iii) is of such a nature that such

13 ability could be improved by more suitable

14 housing conditions;

15 ‘‘(C) has a developmental disability, as de16 fined in section 102 of the Developmental Dis17 abilities Assistance and Bill of Rights Act; or

18 ‘‘(D) has the disease of acquired

19 immunodeficiency syndrome or any conditions

20 arising from the etiologic agent for acquired

21 immunodeficiency syndrome.

22 Subparagraph (D) shall not be construed to limit eligi23 bility under subparagraphs (A) through (C) or the provi24 sions referred to in subparagraphs (A) through (C).
13

S 1071 IS

1 ‘‘(12) PRIVATE NONPROFIT ORGANIZATION.—

2 The term ‘private nonprofit organization’ means a

3 private organization—

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

5 inures to benefits of any member, founder, con6 tributor, or individual;

7 ‘‘(B) that has a voluntary board;

8 ‘‘(C) that has an accounting system, or has

9 designated a fiscal agent in accordance with re10 quirements established by the Secretary; and

11 ‘‘(D) that practices nondiscrimination in

12 the provision of assistance.

13 ‘‘(13) PROJECT SPONSOR.—The term ‘project

14 sponsor’ means an entity that—

15 ‘‘(A) provides housing or assistance for

16 homeless individuals or families by carrying out

17 activities under this title; and

18 ‘‘(B) meets such minimum standards as

19 the Secretary considers appropriate.

20 ‘‘(14) RECIPIENT.—The term ‘recipient’ means

21 a grantee (other than a State when it is distributing

22 grant amounts to State recipients) and a State re23 cipient.
14

S 1071 IS

1 ‘‘(15) SECRETARY.—The term ‘Secretary’

2 means the Secretary of Housing and Urban Develop3 ment.

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

5 the several States and the Commonwealth of Puerto

6 Rico. The term includes an agency or instrumental7 ity of a State that is established pursuant to legisla8 tion and designated by the chief executive officer to

9 act on behalf of the jurisdiction with regard to provi10 sions of this title.

11 ‘‘(17) STATE HOMELESS ASSISTANCE BOARD.—

12 The term ‘State homeless assistance board’ means

13 the board established for the State under section

14 409(d)(1).

15 ‘‘(18) STATE RECIPIENT.—The term ‘State re16 cipient’ means the following entities receiving

17 amounts from the State under section

18 408(c)(2)(B)—

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

20 within the State (other than an allocation unit

21 of general local government); and

22 ‘‘(B) in the case of an area of the State

23 with significant homeless needs where no State

24 recipient is identified, one or more private non25 profit organizations serving that area.
15

S 1071 IS

1 ‘‘(19) UNIT OF GENERAL LOCAL GOVERN2 MENT.—The term ‘unit of general local government’

3 means—

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

5 village, or other general purpose political sub6 division of a State;

7 ‘‘(B) the District of Columbia; and

8 ‘‘(C) any agency or instrumentality thereof

9 that is established pursuant to legislation and

10 designated by the chief executive officer to act

11 on behalf of the jurisdiction with regard to pro12 visions of this title.

13 ‘‘(20) URBAN COUNTY.—The term ‘urban coun14 ty’ has the same meaning as in section 102(a) of the

15 Housing and Community Development Act of 1974.

16 ‘‘(21) VERY LOW-INCOME FAMILIES.—The term

17 ‘very low-income families’ has the same meaning as

18 in section 104 of the Cranston-Gonzalez National

19 Affordable Housing Act.

20 ‘‘SEC. 402. AUTHORIZATIONS.

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

22 to carry out activities to assist homeless individuals and

23 families in support of continuum of care systems, in ac24 cordance with this title.
16

S 1071 IS

1 ‘‘(b) FUNDING AMOUNTS.—There are authorized to

2 be appropriated to carry out this title $823,000,000 for

3 fiscal year 1998 and such sums as may be necessary for

4 each of fiscal years 1999, 2000, 2001, and 2002. Any

5 amounts appropriated shall remain available until ex6 pended.

7 ‘‘SEC. 403. APPLICATION.

8 ‘‘(a) IN GENERAL.—Each applicant shall submit the

9 application required under this section in such form and

10 in accordance with such procedures as the Secretary shall

11 prescribe.

12 Where the applicant is a State or unit of general local

13 government, the application shall be submitted as part of

14 the homeless assistance component of the consolidated

15 plan (which component, in the case of a State, shall not

16 include allocation units of general local government).

17 ‘‘(b) CONTINUUM OF CARE SUBMISSION.—

18 ‘‘(1) IN GENERAL.—The local homeless assist19 ance board or the State homeless assistance board

20 shall prepare, and submit to the applicant for ap21 proval, those portions of the application related to

22 the development and implementation of the contin23 uum of care system, as described in paragraph (2)

24 or (3), as applicable.
17

S 1071 IS

1 ‘‘(2) SUBMISSION BY LOCAL HOMELESS ASSIST2 ANCE BOARD.—The local homeless assistance board

3 shall develop and submit to the applicant for ap4 proval—

5 ‘‘(A) a Continuum of Care system consist6 ent with that defined under section 401(4).

7 This system shall be designed to incorporate

8 any strengths and fill any gaps in the jurisdic9 tion’s current homeless assistance activities,

10 and shall include a description of efforts to ad11 dress the problems faced by each of the dif12 ferent subpopulations of homeless individuals;

13 ‘‘(B) a multi-year strategy for implement14 ing the Continuum of Care system, including

15 appropriate timetables and budget estimates for

16 accomplishing each element of the strategy;

17 ‘‘(C) a 1-year plan, identifying all activities

18 to be carried out with assistance under this title

19 and with assistance from other HUD resources

20 allocated in accordance with the consolidated

21 plan, and describing how these activities will

22 further the strategy; and

23 ‘‘(D) any specific performance measures

24 and benchmarks for use in assessing the per25 formance of the grantee under this title that
18

S 1071 IS

1 are in addition to national performance meas2 ures and benchmarks established by the Sec3 retary.

4 ‘‘(3) SUBMISSION BY STATE HOMELESS ASSIST5 ANCE BOARD.—The State homeless assistance board

6 shall develop and submit to the applicant for ap7 proval—

8 ‘‘(A) a Continuum of Care system consist9 ent with that defined under section 401(4).

10 This system shall be designed to incorporate

11 any strengths and fill any gaps in the jurisdic12 tion’s current homeless assistance activities,

13 and shall include a description of efforts to ad14 dress the problems faced by each of the dif15 ferent subpopulations of homeless individuals;

16 ‘‘(B) a multi-year strategy for implement17 ing the continuum of care systems in areas of

18 the State outside allocation units of general

19 local government, including the actions the

20 State will take to achieve the goals set out in

21 the strategy;

22 ‘‘(C) a 1-year plan identifying—

23 ‘‘(i) in the case of a State carrying

24 out its own activities under section

25 408(c)(2)(A), the activities to be carried
19

S 1071 IS

1 out with assistance under this title and de2 scribing how these activities will further

3 the strategy; and

4 ‘‘(ii) in the case of a State distribut5 ing grant amounts to State recipients

6 under section 408(c)(2)(B), the criteria

7 that the State will use in distributing

8 amounts awarded under this title, the

9 method of distribution, and the relation10 ship of the method of distribution to the

11 homeless assistance strategy; and

12 ‘‘(D) any specific performance measures

13 and benchmarks for use in assessing the per14 formance of the grantee under this title that

15 are in addition to national performance meas16 ures and benchmarks established by the Sec17 retary.

18 ‘‘(c) CONTINUUM OF CARE APPROVAL.—The appli19 cant shall review the continuum of care submission to de20 termine if it is consistent with the homeless needs assess21 ment and the inventory of homeless facilities portions of

22 the consolidated plan. The applicant may alter the submis23 sion where it is inconsistent, but shall give the State or

24 local homeless assistance board an opportunity to com25 ment on any proposed alterations, and shall include in the
20

S 1071 IS

1 application sufficient justification for any alterations and

2 any comments of the homeless assistance board on the al3 terations.

4 ‘‘(d) SUBMISSION REQUIREMENTS FOR APPLICANTS

5 OTHER THAN STATES.—Each application from an appli6 cant other than a State shall contain at a minimum—

7 ‘‘(1) the continuum of care submission de8 scribed in subsection (b)(2), and, if applicable, any

9 alterations, justifications, and comments under sub10 section (c);

11 ‘‘(2) a determination on whether the assistance

12 under this title will be administered by the jurisdic13 tion, a public agency or private nonprofit organiza14 tion, or the State, as appropriate under subsections

15 (b) and (c) of section 408;

16 ‘‘(3) certifications or other such forms of proof

17 of commitments of financial and other resources suf18 ficient to comply with the match requirements under

19 section 405(c)(1);

20 ‘‘(4) a certification that the applicant is follow21 ing a current approved consolidated plan;

22 ‘‘(5) a certification that the grant will be con23 ducted and administered in conformity with title VI

24 of the Civil Rights Act of 1964, section 504 of the

25 Rehabilitation Act of 1973, and the Fair Housing
21

S 1071 IS

1 Act, and the grantee will affirmatively further fair

2 housing; and

3 ‘‘(6) a certification that the applicant will com4 ply with the requirements of this title and other ap5 plicable laws.

6 ‘‘(e) SUBMISSION REQUIREMENTS FOR STATES.—

7 Each application from a State shall contain—

8 ‘‘(1) the continuum of care submission de9 scribed in subsection (b)(3) and, if applicable, any

10 alterations, justifications, and comments under sub11 section (c);

12 ‘‘(2) certifications or other such forms of proof

13 of commitments of financial and other resources suf14 ficient to comply with the match requirements under

15 section 405(c)(1);

16 ‘‘(3) a certification that the applicant is follow17 ing a current approved consolidated plan;

18 ‘‘(4) a certification that the grant will be con19 ducted and administered in conformity with title VI

20 of the Civil Rights Act of 1964, section 504 of the

21 Rehabilitation Act of 1973, and the Fair Housing

22 Act, and the grantee will affirmatively further fair

23 housing; and
22

S 1071 IS

1 ‘‘(5) a certification that the State and State re2 cipients will comply with the requirements of this

3 title and other applicable laws.

4 ‘‘(f) APPLICATION APPROVAL.—The application shall

5 be approved by the Secretary unless the Secretary deter6 mines that the application is substantially incomplete, or

7 determines, under section 409(c)(5) or 409(d)(1)(B), that

8 the process for constituting or operating the local or State

9 homeless assistance board is unfair.

10 ‘‘SEC. 404. ELIGIBLE PROJECTS AND ACTIVITIES.

11 ‘‘(a) ELIGIBLE PROJECTS.—Grants under this title

12 may be used to carry out activities described in subsection

13 (b) in support of the following types of projects—

14 ‘‘(1) EMERGENCY ASSISTANCE.—Assistance de15 signed to prevent homelessness or to meet the emer16 gency needs of homeless individuals and families, in17 cluding one or more of the following—

18 ‘‘(A) PREVENTION.—Efforts to prevent

19 homelessness of a very low-income individual or

20 family that has received an eviction notice, no21 tice of mortgage foreclosure, or notice of termi22 nation of utilities, if—

23 ‘‘(i) the individual or family cannot

24 make the required payments due to a sud-
23

S 1071 IS

1 den reduction in income or other financial

2 emergency; and

3 ‘‘(ii) the assistance is necessary to

4 avoid imminent eviction, foreclosure, or

5 termination of services.

6 ‘‘(B) OUTREACH AND ASSESSMENT.—Ef7 forts designed to inform individuals and fami8 lies about the availability of services, to bring

9 them into the continuum of care system, and to

10 determine which services or housing are appro11 priate to the needs of the individual or family.

12 ‘‘(C) EMERGENCY SHELTER.—The provi13 sion of short-term emergency shelter with es14 sential supportive services for homeless individ15 uals and families.

16 ‘‘(2) SAFE HAVEN HOUSING.—A structure or a

17 clearly identifiable portion of a structure that—

18 ‘‘(A) provides housing and low-demand

19 services and referrals for homeless individuals

20 with serious mental illness—

21 ‘‘(i) who are currently residing pri22 marily in places not designed for, or ordi23 narily used as, a regular sleeping accom24 modation for human beings; and
24

S 1071 IS

1 ‘‘(ii) who have been unwilling or un2 able to participate in mental health or sub3 stance abuse treatment programs or to re4 ceive other supportive services; except that

5 a person whose sole impairment is sub6 stance abuse shall not be considered an eli7 gible person;

8 ‘‘(B) provides 24-hour residence for eligible

9 individuals who may reside for an unspecified

10 duration;

11 ‘‘(C) provides private or semi-private ac12 commodations;

13 ‘‘(D) may provide for the common use of

14 kitchen facilities, dining rooms, and bathrooms;

15 ‘‘(E) may provide supportive services to el16 igible persons who are not residents on a drop17 in basis; and

18 ‘‘(F) provides occupancy limited to no

19 more than 25 persons.

20 ‘‘(3) TRANSITIONAL HOUSING.—Housing and

21 appropriate supportive services that are designed to

22 facilitate the movement of homeless individuals to

23 permanent housing, generally within 24 months.

24 ‘‘(4) PERMANENT HOUSING AND PERMANENT

25 HOUSING AND SUPPORTIVE SERVICES FOR PERSONS
25

S 1071 IS

1 WITH DISABILITIES.—Permanent housing for home2 less individuals, and permanent housing and sup3 portive services for homeless persons with disabil4 ities, the latter of which may be designed to provide

5 housing and services solely for persons with disabil6 ities, or may provide housing for such persons in a

7 multifamily housing, condominium, or cooperative

8 project.

9 ‘‘(5) SINGLE ROOM OCCUPANCY HOUSING.—A

10 unit for occupancy by one person, which need not

11 (but may) contain food preparation or sanitary fa12 cilities, or both, and may provide services such as

13 mental health services, substance abuse treatment,

14 job training, and employment programs.

15 ‘‘(6) OTHER PROJECTS.—Such other projects

16 as the Secretary determines will further the pur17 poses of title I of the Homelessness Assistance and

18 Management Reform Act of 1997.

19 ‘‘(b) ELIGIBLE ACTIVITIES.—Grants under this title

20 may be used to carry out the following activities in support

21 of projects described in subsection (a)—

22 ‘‘(1) HOMELESSNESS PREVENTION ACTIVI23 TIES.—Short-term mortgage, rental, and utilities

24 payments and other short-term assistance designed
26

S 1071 IS

1 to prevent the imminent homelessness of the individ2 uals and families described in subsection (a)(1)(A).

3 ‘‘(2) OUTREACH AND ASSESSMENT.—Drop-in

4 centers, 24-hour hotlines, counselors, and other ac5 tivities designed to engage homeless individuals and

6 families, bring them into the continuum of care sys7 tem, and determine their individual housing and

8 service needs.

9 ‘‘(3) ACQUISITION AND REHABILITATION.—The

10 acquisition, rehabilitation, or acquisition and reha11 bilitation of real property.

12 ‘‘(4) NEW CONSTRUCTION.—The new construc13 tion of a project, including the cost of the site.

14 ‘‘(5) OPERATING COSTS.—The costs of operat15 ing a project, including salaries and benefits, main16 tenance, insurance, utilities, replacement reserve ac17 counts, and furnishings.

18 ‘‘(6) LEASING.—Leasing of an existing struc19 ture or structures, or units within these structures,

20 including the provision of long-term rental assistance

21 contracts.

22 ‘‘(7) TENANT ASSISTANCE.—The provision of

23 security or utility deposits, rent or utility payments

24 for the first month of residence at a new location,

25 and relocation assistance.
27

S 1071 IS

1 ‘‘(8) SUPPORTIVE SERVICES.—The provision of

2 essential supportive services including, but not lim3 ited to, case management, housing counseling, job

4 training and placement, primary health care, mental

5 health services, substance abuse treatment, child

6 care, transportation, emergency food and clothing,

7 family violence services, education services, moving

8 services, assistance in obtaining entitlement benefits,

9 and referral to veterans services and referral to legal

10 services.

11 ‘‘(9) ADMINISTRATION.—

12 ‘‘(A) IN GENERAL.—Expenses incurred

13 in—

14 ‘‘(i) planning, developing, and estab15 lishing a program under this title;

16 ‘‘(ii) establishing, selecting, and sup17 porting the local homeless assistance board

18 or the State homeless assistance board;

19 and

20 ‘‘(iii) administering the program.

21 ‘‘(B) Limitations.—Not more than the fol22 lowing amounts may be used for administrative

23 costs under subparagraph (A)—

24 ‘‘(i) 10 percent of any grant amounts

25 provided for a recipient for a fiscal year
28

S 1071 IS

1 (including amounts used by a State to

2 carry out its own activities under section

3 408(c)(2)(A)); and

4 ‘‘(ii) 5 percent of any grant amounts

5 provided to a State for a fiscal year that

6 the State uses to distribute funds to a

7 State recipient under section 408(c)(2)(B).

8 ‘‘(10) Capacity building.

9 ‘‘(A) In general.—Building the capacity of

10 private nonprofit organizations to participate in

11 the continuum of care system of the recipient.

12 ‘‘(B) Limitations.—Not more than the fol13 lowing amounts may be used for capacity build14 ing under subparagraph (A)—

15 ‘‘(i) 2 percent of any grant amounts

16 provided for a recipient for a fiscal year

17 (including amounts used by a State to

18 carry out its own activities under section

19 408(c)(2)(A)); and

20 ‘‘(ii) 2 percent of any grant amounts

21 provided to a State for a fiscal year that

22 the State uses to distribute funds to a

23 State recipient under section 408(c)(2)(B).

24 ‘‘(11) Other activities.—Other activities as the

25 Secretary determines will further the purposes of
29

S 1071 IS

1 title I of the Homelessness Assistance and Manage2 ment Reform Act of 1997.

3 ‘‘(c) Targeting to Subpopulations of Persons With

4 Disabilities.—Notwithstanding any other provision of law,

5 projects for persons with disabilities assisted under this

6 title may be targeted to specific subpopulations of such

7 persons, including (but not limited to) persons who—

8 ‘‘(1) are seriously mentally ill;

9 ‘‘(2) have chronic problems with drugs, alcohol,

10 or both; or

11 ‘‘(3) have acquired immunodeficiency syndrome

12 or any conditions arising from the etiologic agency

13 for acquired immunodeficiency syndrome.

14 ‘‘SEC. 405. MATCHING REQUIREMENT AND MAINTENANCE

15 OF EFFORT.

16 ‘‘(a) Matching Requirement.—

17 ‘‘(1) In general.—Each recipient shall make

18 contributions totaling not less than 50 percent of the

19 amounts made available for the recipient for any fis20 cal year under this title to carry out eligible activi21 ties. At the end of each program year, each recipient

22 shall certify to the Secretary that it has complied

23 with this section, and shall include with the certifi24 cation a description of the sources and amounts of

25 the matching contributions. Contributions under this
30

S 1071 IS

1 section may not come from assistance provided

2 under this title.

3 ‘‘(2) Reduction in matching requirements.—

4 ‘‘(A) In general.—The Secretary shall re5 duce the matching requirement under para6 graph (1) during a fiscal year by—

7 ‘‘(i) 50 percent for a jurisdiction that

8 certifies that it is in fiscal distress; and

9 ‘‘(ii) 100 percent for a jurisdiction

10 that certifies that it is in severe fiscal dis11 tress.

12 For purposes of clauses (i) and (ii), the jurisdiction shall

13 make the certification on behalf of a recipient that is not

14 a governmental jurisdiction.

15 ‘‘(B) Definitions.—For purposes of this

16 subsection—

17 ‘‘(i) the term ‘‘fiscal distress’’ means

18 an allocation unit of general local govern19 ment, insular area, or State recipient that

20 is a governmental jurisdiction that satisfies

21 one of the distress criteria set forth in sub22 paragraph (C); and

23 ‘‘(ii) the term ‘‘severe fiscal distress’’

24 means an allocation unit of general local

25 government, insular area, or State recipi-
31

S 1071 IS

1 ent that is a governmental jurisdiction that

2 satisfies both of the distress criteria set

3 forth in subparagraph (C).

4 ‘‘(C) Distress criteria.—For an allocation

5 unit of general local government, an insular

6 area, or a State recipient that is a govern7 mental jurisdiction certifying that it is dis8 tressed, the following criteria shall apply—

9 ‘‘(i) POVERTY RATE.—The average

10 poverty rate in the jurisdiction for the cal11 endar year immediately preceding the year

12 in which its fiscal year begins was equal to

13 or greater than 125 percent of the average

14 national poverty rate during such calendar

15 year (as determined according to informa16 tion of the Bureau of the Census).

17 ‘‘(ii) PER CAPITA INCOME.—The aver18 age per capita income in the jurisdiction

19 for the calendar year immediately preced20 ing the year in which its fiscal year begins

21 was less than 75 percent of the average

22 national per capita income during such cal23 endar year (as determined according to in24 formation of the Bureau of the Census).
32

S 1071 IS

1 ‘‘(D) STATES.—In the case of States car2 rying out their own activities under section

3 408(c)(2)(A), the Secretary shall reduce the

4 matching requirement under paragraph (1) as

5 provided by the preceding subparagraphs, ex6 cept that the certification shall be made with

7 respect to the area, as determined by the Sec8 retary, in which the activities are to be carried

9 out.

10 ‘‘(E) WAIVER IN DISASTER AREAS.—If a

11 recipient is located in an area in which a dec12 laration of a disaster pursuant to the Robert T.

13 Stafford Disaster Relief and Emergency Assist14 ance Act is in effect for any part of a fiscal

15 year, the Secretary may reduce the matching

16 requirement for that fiscal year under para17 graph (1) during that fiscal year by up to 100

18 percent.

19 ‘‘(3) CALCULATION OF AMOUNTS.—In calculat20 ing the amount of matching contributions required

21 under paragraph (1), a recipient may include—

22 ‘‘(A) any funds derived from a source,

23 other than assistance under this title or

24 amounts subject to subsection (b);
33

S 1071 IS

1 ‘‘(B) the value of any lease on a building;

2 and

3 ‘‘(C) any salary paid to staff or any volun4 teer labor contributed to carry out the program.

5 ‘‘(b) LIMITATION ON USE OF FUNDS.—No assistance

6 received under this title may be used to replace other

7 funds previously used, or designated for use, by the State,

8 State recipient (except when a State recipient is a private

9 nonprofit organization), allocation unit of general local

10 government or insular area to assist homeless individuals

11 and families.

12 ‘‘SEC. 406. RESPONSIBILITIES OF RECIPIENTS, PROJECT

13 SPONSORS, AND OWNERS.

14 ‘‘(a) USE OF ASSISTANCE THROUGH PRIVATE NON15 PROFIT ORGANIZATIONS.—

16 ‘‘(1) IN GENERAL.—Each recipient shall ensure

17 that at least 50 percent of the grant amounts that

18 are made available to it under this title for any fiscal

19 year are made available to project sponsors that are

20 private nonprofit organizations.

21 ‘‘(2) WAIVER.—The Secretary may waive or re22 duce the requirement of paragraph (1), if the recipi23 ent demonstrates to the Secretary that the require24 ment interferes with the ability of the recipient to

25 provide assistance under this title because of the
34

S 1071 IS

1 paucity of qualified private non-profit organizations

2 in the jurisdiction of the recipient.

3 ‘‘(b) HOUSING QUALITY.—Each recipient shall en4 sure that housing assisted with grant amounts provided

5 under this title is decent, safe, and sanitary and complies

6 with all applicable State and local housing codes, building

7 codes, and licensing requirements in the jurisdiction in

8 which the housing is located.

9 ‘‘(c) PREVENTION OF UNDUE BENEFIT.—The Sec10 retary may prescribe such terms and conditions as the

11 Secretary considers necessary to prevent project sponsors

12 from unduly benefiting from the sale or other disposition

13 of projects, other than a sale or other disposition resulting

14 in the use of the project for the direct benefit of very low15 income families.

16 ‘‘(d) CONFIDENTIALITY.—Each recipient shall de17 velop and implement procedures to ensure the confiden18 tiality of records pertaining to any individual provided

19 services assisted under this title for family violence preven20 tion or treatment or for such medical or other conditions

21 as the Secretary may prescribe, and to ensure that the

22 address or location of any project providing such services

23 will, except with written authorization of the person or

24 person responsible for the operation of such project, not

25 be made public.
35

S 1071 IS

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

2 ‘‘(1) To the maximum extent practicable, the

3 Secretary shall ensure that recipients, through em4 ployment, volunteer services, or otherwise, provide

5 opportunities for homeless individuals and families

6 to participate in—

7 ‘‘(A) constructing, renovating, maintaining,

8 and operating facilities assisted under this title;

9 ‘‘(B) providing services so assisted; and

10 ‘‘(C) providing services for occupants of fa11 cilities so assisted.

12 ‘‘(2) In carrying out paragraph (1), recipients

13 shall not displace employed workers.

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

15 The Secretary shall provide that each recipient shall re16 quire each project sponsor receiving assistance under this

17 title from the recipient to provide for the participation of

18 not less than one homeless individual or formerly homeless

19 individual on the board of directors or other equivalent

20 policy making entity of the project sponsor, to the extent

21 that such entity considers and makes policies and decision

22 regarding any project, facility, services, or other activities

23 assisted under this title. A recipient may grant waivers

24 to project sponsors unable to meet the requirement under

25 the preceding sentence, if the project sponsor agrees to
36

S 1071 IS

1 otherwise consult with homeless or formerly homeless indi2 viduals in considering and making such policies and deci3 sions.

4 ‘‘(g) NONDISCRIMINATION TOWARD CERTIFICATE

5 AND VOUCHER HOLDERS.—In the case of multifamily

6 rental housing assisted under this title (except for such

7 housing only receiving homeless prevention assistance au8 thorized under section 404(b)(1) of this title) that is re9 ceiving, or (except for insurance referred to in paragraph

10 (4)) has received within two years before the effective date

11 of this title, the benefit of Federal assistance from an

12 agency of the United States, the owner shall not refuse

13 to lease a reasonable number of units to families under

14 the tenant-based assistance program under section 8 of

15 the United States Housing Act of 1937 because of the

16 status of the prospective tenants as families under the pro17 gram. The Secretary shall establish reasonable time peri18 ods for applying the requirement of this subsection, taking

19 into account the total amount of the assistance and the

20 relative share of the assistance compared to the total cost

21 of financing, developing, rehabilitating, or otherwise as22 sisting a project. Federal assistance for purposes of this

23 subsection shall mean—

24 (1) project-based assistance under the United

25 States Housing Act of 1937;
37

S 1071 IS

1 (2) assistance under title I of the Housing and

2 Community Development Act of 1974;

3 (3) assistance under title II of the Cranston4 Gonzalez National Affordable Housing Act;

5 (4) mortgage insurance under the National

6 Housing Act;

7 (5) low-income housing tax credits under sec8 tion 42 of the Internal Revenue Code of 1986; and

9 (6) assistance under any other programs des10 ignated by the Secretary.

11 ‘‘(h) OCCUPANCY CHARGE.—Any homeless individual

12 or family residing in a dwelling unit assisted under this

13 title may be required to pay an occupancy charge in an

14 amount determined by the grantee providing the assist15 ance, which may not exceed an amount equal to 30 percent

16 of the adjusted income (as such term is defined in section

17 3(b) of the United States Housing Act of 1937 or any

18 other subsequent provision of Federal law defining such

19 term for purposes of eligibility for, or rental charges in,

20 public housing) of the individual or family. Occupancy

21 charges paid may be reserved, in whole or in part, to assist

22 residents in moving to permanent housing.

23 ‘‘SEC. 407. ALLOCATION AND DISTRIBUTION OF FUNDS.

24 ‘‘(a) INSULAR AREAS.—
38

S 1071 IS

1 ‘‘(1) ALLOCATION.—For each fiscal year, the

2 Secretary shall allocate assistance under this title to

3 insular areas, in an amount equal to 0.20 percent of

4 the amounts appropriated under the first sentence of

5 section 402(b).

6 ‘‘(2) DISTRIBUTION.—The Secretary shall pro7 vide for the distribution of amounts reserved under

8 paragraph (1) for insular areas pursuant to specific

9 criteria or a distribution formula prescribed by the

10 Secretary.

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

12 LOCAL GOVERNMENT.—

13 ‘‘(1) IN GENERAL.—For each fiscal year, of the

14 amounts appropriated under the first sentence of

15 section 402(b) that remain after amounts are re16 served—

17 ‘‘(A) for insular areas under subsection

18 (a), and

19 ‘‘(B) for technical assistance and other ac20 tivities under subsection (d),

21 the Secretary shall allocate assistance according to

22 the formula described in paragraph (2).

23 ‘‘(2) FORMULA.—

24 ‘‘(A) ALLOCATION.—The Secretary shall

25 allocate amounts for allocation units of general
39

S 1071 IS

1 local government (including jurisdictions that

2 received a formula grant for fiscal year 1996 or

3 1997 under subtitle B of this title, as it existed

4 immediately before the effective date of the

5 Homelessness Assistance and Management Re6 form Act of 1997) and States, in a manner that

7 ensures that the percentage of the total amount

8 available under this title for any fiscal year for

9 any allocation unit of general local government

10 or State is equal to the percentage of the total

11 amount available for section 106 of the Hous12 ing and Community Development Act of 1974

13 for the same fiscal year that is allocated for the

14 allocation unit of general local government or

15 State.

16 ‘‘(B) MINIMUM ALLOCATION.—

17 ‘‘(i) ALLOCATION UNITS OF GENERAL

18 LOCAL GOVERNMENT.—If under subpara19 graph (A) for any fiscal year, the alloca20 tion for any allocation unit of general local

21 government is less than 0.05 percent of the

22 amounts appropriated under the first sen23 tence of section 402(b), such allocation

24 unit shall not receive a grant and its allo25 cation shall be added to the allocation for
40

S 1071 IS

1 the State in which such allocation unit is

2 located for use under section 408(c)(1), ex3 cept that any such allocation unit that re4 ceived a grant in a previous fiscal year (in5 cluding a jurisdiction that received a for6 mula grant for fiscal year 1996 or 1997

7 under subtitle B of this title, as it existed

8 immediately before the effective date of the

9 Homelessness Assistance and Management

10 Reform Act of 1997) shall be allocated an

11 amount equal to 0.05 percent of the

12 amounts appropriated under the first sen13 tence of section 402(b).

14 ‘‘(ii) STATES.—If under subparagraph

15 (A) for any fiscal year, the allocation for

16 any State is less than 0.2 percent of the

17 amounts appropriated under the first sen18 tence of section 402(b), such State shall be

19 allocated an amount equal to 0.2 percent

20 of such amounts.

21 ‘‘(C) PRO RATA INCREASES AND DE22 CREASES.—

23 ‘‘(i) INCREASE.—All amounts allo24 cated pursuant to the preceding subpara25 graphs for allocation units of general local
41

S 1071 IS

1 government shall be increased on a pro

2 rata basis until the aggregate of such

3 amounts equals 75 percent of the remain4 der of amounts appropriated under this

5 title for each year, after amounts are allo6 cated for insular areas under subsection

7 (a) and for technical assistance and other

8 assistance under subsection (d).

9 ‘‘(ii) DECREASE.—All amounts allo10 cated pursuant to the preceding subpara11 graphs for States shall be decreased on a

12 pro rata basis until the aggregate of such

13 amounts equals 25 percent of the remain14 der of amounts appropriated under this

15 title for each year, after amounts are allo16 cated for insular areas under subsection

17 (a) and for technical and other assistance

18 under subsection (d).

19 ‘‘(3) MINIMUM GRANT AMOUNT.—Notwith20 standing paragraph (2), an allocation unit of general

21 local government shall receive no less funding under

22 this subsection in fiscal year 1998 than 75 percent

23 of the average of the amounts awarded annually to

24 that jurisdiction for homeless assistance programs

25 administered by the Secretary under this title during
42

S 1071 IS

1 fiscal years 1987 through 1996, no less than 50 per2 cent in fiscal year 1999, and no less than 25 percent

3 in fiscal year 2000, but only if amounts appro4 priated pursuant to the first sentence of section

5 402(b) in each of fiscal years 1998, 1999, and 2000

6 exceed $800,000,000. If such amounts do not exceed

7 $800,000,000 in fiscal year 1998, 1999, or 2000,

8 the allocation unit of general local government may

9 receive its proportionate share of the amounts ap10 propriated which may be less than 75 percent of

11 such annual average amounts for fiscal year 1998,

12 less than 50 percent for fiscal year 1999, and less

13 than 25 percent for fiscal year 2000 as determined

14 by the Secretary.

15 ‘‘(4) REDUCTION.—Notwithstanding para16 graphs (2) and (3), in any fiscal year, the Secretary

17 may provide a grant under this title for a State or

18 for an allocation unit of general local government in

19 an amount less than the amount allocated under

20 those paragraphs, if the Secretary determines, that

21 the jurisdiction has failed to comply with require22 ments of this title, or that such action is otherwise

23 appropriate.

24 ‘‘(c) REALLOCATIONS.—
43

S 1071 IS

1 ‘‘(1) AMOUNTS NOT RECEIVED.—Any amounts

2 that a State or an allocation unit of general local

3 government is eligible to receive under subsection (b)

4 that are not received for use in the jurisdiction, pur5 suant to subsection (b)(4), shall be added to

6 amounts available for allocation under subsection (b)

7 of this section for the succeeding fiscal year.

8 ‘‘(2) USE OF AMOUNTS UNDER THIS TITLE.—

9 ‘‘(A) AUTHORITY FOR ALTERNATIVE USE

10 OF AMOUNTS.—If the Secretary determines that

11 a State or an allocation unit of general local

12 government has made substantial progress in

13 reducing the number and meeting the needs of

14 homeless individuals, and is eligible to receive

15 an amount under subsection (b) that is in ex16 cess of the amount required to meet the needs

17 of homeless individuals through activities under

18 this title, the Secretary shall reduce the amount

19 under subsection (b) accordingly, and add such

20 excess amount to the amount allocated for such

21 jurisdiction under section 106 of the Housing

22 and Community Development Act of 1974 or

23 under section 217 of the HOME Investment

24 Partnerships Act, for use in meeting low-income

25 housing needs. In making the determinations
44

S 1071 IS

1 required by the preceding sentence, the Sec2 retary shall consult with the State or allocation

3 unit of general local government and assess the

4 need for assistance under this Act, taking into

5 account such factors as the current number of

6 homeless individuals, the extent of their need,

7 and the cost of meeting such need. The Sec8 retary shall make the initial determination for

9 amounts to be allocated in fiscal year 2001 and

10 at least every three years thereafter.

11 ‘‘(B) AUTHORITY TO MAKE TRANSFERS

12 AMONG APPROPRIATION ACCOUNTS.—The Sec13 retary shall transfer such amounts as are ap14 proved in accordance with this paragraph

15 among appropriation accounts, as appropriate.

16 ‘‘(d) TECHNICAL AND OTHER ASSISTANCE AND MAN17 AGEMENT INFORMATION SYSTEMS.—

18 ‘‘(1) TECHNICAL AND OTHER ASSISTANCE.—

19 From amounts appropriated under the first sentence

20 of section 402(b) for any fiscal year, the Secretary

21 may directly or indirectly by grant, contract, or co22 operative agreement use up to $25,000,000 for—

23 ‘‘(A) TECHNICAL ASSISTANCE.—Technical

24 assistance, which may include training and the

25 cost of necessary travel for participants in such
45

S 1071 IS

1 training, by or to officials and employees of the

2 Department of Housing and Urban Develop3 ment, applicants, grantees, recipients, local and

4 State homeless assistance boards, State recipi5 ents, and private nonprofits to improve their

6 ability to carry out the provisions of this title

7 and to support the creation of continuum of

8 care systems.

9 ‘‘(B) CAPACITY BUILDING.—Assistance to

10 private nonprofit organizations to build their

11 capacity in support of continuum of care sys12 tems.

13 ‘‘(C) RESOURCE IDENTIFICATION.—Identi14 fication, coordination, and development of re15 sources and data for homelessness, including

16 determining the feasibility of specific housing17 related initiatives.

18 ‘‘(D) PROGRAM OVERSIGHT.—Performance

19 reviews and audits under section 410(c), includ20 ing the cost of necessary travel.

21 ‘‘(2) MANAGEMENT INFORMATION SYSTEMS.—

22 From amounts appropriated under the first sentence

23 of section 402(b) for any fiscal year, the Secretary

24 shall reserve 0.4 percent to develop, implement, and

25 refine management information systems in order to
46

S 1071 IS

1 establish a national database on local needs and pri2 orities and to provide grantees and others with soft3 ware to plan and track performance under this title.

4 ‘‘SEC. 408. ADMINISTRATION OF PROGRAM.

5 ‘‘(a) IN GENERAL.—The Secretary shall prescribe

6 such procedures and requirements as the Secretary deems

7 appropriate for administering grant amounts under this

8 title.

9 ‘‘(b) ALLOCATION UNITS OF GENERAL LOCAL GOV10 ERNMENT AND INSULAR AREAS.—

11 ‘‘(1) IN GENERAL.—Except as provided in para12 graphs (2) and (3), an allocation unit of general

13 local government or insular area shall administer

14 grant amounts received under section 407(a) or (b)

15 for any fiscal year.

16 ‘‘(2) AGENCIES AND ORGANIZATIONS DES17 IGNATED BY JURISDICTION.—

18 ‘‘(A) DESIGNATION OF OTHER ENTITIES

19 TO ADMINISTER GRANT AMOUNTS.—An alloca20 tion unit of general local government or insular

21 area may elect for any fiscal year to designate

22 a public agency or a private nonprofit organiza23 tion (or a collaboration of such organizations)

24 to administer grant amounts received under

25 section 407(a) or (b) instead of the jurisdiction.
47

S 1071 IS

1 ‘‘(B) PROVISION OF GRANT AMOUNTS.—

2 The Secretary may, at the request of a jurisdic3 tion under subparagraph (A), provide grant

4 amounts directly to the agency or organization

5 designated under that subparagraph.

6 ‘‘(3) ADMINISTRATION OF GRANT BY SEC7 RETARY OR SECRETARY’S DESIGNEE.—If an alloca8 tion unit of general local government or insular area,

9 or (if appropriate) a public agency or private non10 profit organization designated by the jurisdiction

11 under paragraph (2), does not receive a grant pursu12 ant to section 407(b)(4) for any fiscal year, the Sec13 retary shall—

14 ‘‘(A) designate the State or a local private

15 nonprofit organization to administer the grant

16 amounts instead of the jurisdiction; or

17 ‘‘(B) distribute the funds to private non18 profit organizations to carry out activities with19 in the jurisdiction on the basis of a competition.

20 ‘‘(c) STATES.—

21 ‘‘(1) IN GENERAL.—Each State shall elect ei22 ther—

23 ‘‘(A) to administer grant amounts received

24 under section 407(b), as provided by para25 graphs (2) and (3); or
48

S 1071 IS

1 ‘‘(B) have the Secretary administer these

2 amounts instead of the State, as provided by

3 paragraph (4).

4 If a State elects to administer grant amounts under

5 subparagraph (A), the election shall be permanent

6 and final.

7 ‘‘(2) STATE PROGRAM.—Of amounts referred to

8 in paragraph (1)(A), the State—

9 ‘‘(A) may use not more than 15 percent to

10 carry out its own homeless assistance program

11 under this title; and

12 ‘‘(B) shall distribute the remaining

13 amounts to State recipients.

14 Grants to States may only be used to carry out ac15 tivities in areas of the State outside allocation units

16 of general local government.

17 ‘‘(3) DISTRIBUTION OF AMOUNTS TO STATE RE18 CIPIENTS.—

19 ‘‘(A) IN GENERAL.—

20 ‘‘(i) States distributing amounts

21 under paragraph (2)(B) to State recipients

22 that are units of general local government

23 shall, for each fiscal year, afford each such

24 recipient the options of—
49

S 1071 IS

1 ‘‘(I) administering the grant

2 amounts on its own behalf;

3 ‘‘(II) designating (as provided by

4 subsection (b)(2)) a public agency or

5 a private nonprofit organization (or a

6 combination of such organizations) to

7 administer the grant amounts instead

8 of the jurisdiction; or

9 ‘‘(III) entering into an agreement

10 with the State, in consultation with

11 private nonprofit organizations provid12 ing assistance to homeless individuals

13 and families in the jurisdiction, under

14 which the State will administer the

15 grant amounts instead of the jurisdic16 tion.

17 ‘‘(ii) A State recipient designating an

18 agency or organization as provided by

19 clause (i)(II), or entering into an agree20 ment with the State under clause (i)(III),

21 shall remain the State recipient for pur22 poses of this title.

23 ‘‘(iii) The State may, at the request of

24 the State recipient, provide grant amounts
50

S 1071 IS

1 directly to the agency or organization des2 ignated under clause (i)(II).

3 ‘‘(B) APPLICATION.—

4 ‘‘(i) The State shall distribute

5 amounts to State recipients (or to agencies

6 or organizations designated under subpara7 graph (A)(i)(II), as appropriate) on the

8 basis of an application containing such in9 formation as the State may prescribe, ex10 cept that each application shall reflect the

11 State’s application requirements in section

12 403(d) and evidence an intent to facilitate

13 the establishment of a continuum of care

14 system prepared by the State homeless as15 sistance board.

16 ‘‘(ii) The State may waive the require17 ments in clause (i) with respect to one or

18 more proposed activities, where the State

19 determines that—

20 ‘‘(I) the activities are necessary

21 to meet the needs of homeless individ22 uals and families within the jurisdic23 tion; and

24 ‘‘(II) a continuum of care system

25 is not necessary, due to the nature
51

S 1071 IS

1 and extent of homelessness in the ju2 risdiction.

3 ‘‘(C) PREFERENCE.—In selecting State re4 cipients and making awards under subpara5 graph (B), the State shall give preference to ap6 plications that demonstrate higher relative lev7 els of homeless need and fiscal distress.

8 ‘‘(4) HUD ADMINISTRATION OF STATE PRO9 GRAM.—

10 ‘‘(A) IN GENERAL.—If a State elects to

11 have the Secretary administer its grant

12 amounts under section 407, as provided by

13 paragraph (1)(B), the Secretary may retain up

14 to 5 percent of such amounts to cover adminis15 trative expenses, and distribute the remaining

16 amounts in areas of the State outside allocation

17 units of general local government to—

18 ‘‘(i) units of general local government

19 (other than allocation units of general local

20 government);

21 ‘‘(ii) public agencies or private non22 profit organizations designated by such

23 units of general local government; or

24 ‘‘(iii) private nonprofit organizations.
52

S 1071 IS

1 ‘‘(B) DISTRIBUTION OF FUNDS.—The Sec2 retary shall distribute amounts under this para3 graph on a competitive basis, using selection

4 criteria which shall include—

5 ‘‘(i) the extent to which there is a

6 need for assistance for homeless individ7 uals and families in the jurisdiction;

8 ‘‘(ii) the extent to which the proposed

9 activities further the establishment and

10 maintenance of a continuum of care sys11 tem;

12 ‘‘(iii) the extent to which private non13 profit organizations providing assistance to

14 homeless individuals and facilities in the

15 jurisdiction have been, and will be, in16 cluded in planning for the receipt of assist17 ance under this title, and the execution of

18 the proposed activities;

19 ‘‘(iv) the capacity of the entity apply20 ing for a grant under this subsection to de21 velop and operate a project;

22 ‘‘(v) the need for the type of project

23 proposed by the entity applying for a grant

24 under this subsection in the area to be

25 served;
53

S 1071 IS

1 ‘‘(vi) the extent to which the amount

2 of assistance to be provided under this title

3 will be supplemented with resources from

4 other public and private sources;

5 ‘‘(vii) the extent to which the entity

6 applying for a grant under this subsection

7 has demonstrated coordination with Fed8 eral, State, local, private, and other enti9 ties serving homeless individuals in the

10 planning and operation of the project; and

11 ‘‘(viii) such other criteria as the Sec12 retary deems appropriate to further the

13 purposes of this paragraph and this title.

14 ‘‘SEC. 409. CITIZEN PARTICIPATION.

15 ‘‘(a) IN GENERAL.—Each recipient shall ensure that

16 citizens, appropriate private nonprofit organizations, and

17 other interested groups and entities participate fully in the

18 development and carrying out of the program authorized

19 under this title. The Secretary shall prescribe such re20 quirements to carry out this section as the Secretary

21 deems appropriate, which shall include requirements appli22 cable to the citizen participation provisions of subsection

23 (b), the local homeless assistance board referred to in sub24 section (c), and the requirements for homeless assistance

25 boards for States and State recipients under subsection
54

S 1071 IS

1 (d), and the timing of, and sequence for, carrying out the

2 requirements of those subsections.

3 ‘‘(b) SPECIFIC REQUIREMENTS FOR THE INVOLVE4 MENT OF CITIZENS AND OTHERS.—

5 ‘‘(1) ENTITIES THAT ARE GOVERNMENTAL JU6 RISDICTIONS.—Each recipient that is a govern7 mental jurisdiction shall comply with the citizen par8 ticipation requirements established by the Secretary

9 with respect to the consolidated plan.

10 ‘‘(2) ENTITIES THAT ARE NOT GOVERNMENTAL

11 JURISDICTIONS.—For applicants or grantees (as ap12 propriate) that are not governmental jurisdictions,

13 the Secretary shall prescribe citizen participation re14 quirements that are comparable (to the extent ap15 propriate) to those required by paragraph (1).

16 ‘‘(c) LOCAL HOMELESS ASSISTANCE BOARD FOR AL17 LOCATION UNITS OF GENERAL LOCAL GOVERNMENT AND

18 INSULAR AREAS.—

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

20 chief executive officer of each allocation unit of gen21 eral local government or insular area shall establish,

22 select, and support a local homeless assistance

23 board, which shall assist the jurisdiction—

24 ‘‘(A) by developing the continuum of care

25 system and other submission requirements, and
55

S 1071 IS

1 by submitting the system and such other sub2 mission requirements for its approval under sec3 tion 403(b);

4 ‘‘(B) in overseeing the activities carried

5 out with assistance under this title; and

6 ‘‘(C) in preparing the performance report

7 under section 410(b).

8 ‘‘(2) COMPOSITION OF BOARD.—The composi9 tion of each local homeless assistance board shall be

10 as follows—

11 ‘‘(A) MAJORITY OF BOARD.—Not less than

12 51 percent of the members of the local homeless

13 assistance board shall represent the following—

14 ‘‘(i) homeless individuals and families;

15 ‘‘(ii) homeless advocates that meet

16 such minimum standards of advocacy as

17 the Secretary shall prescribe; and

18 ‘‘(iii) individuals and entities provid19 ing assistance to homeless individuals and

20 families.

21 ‘‘(B) REMAINDER OF BOARD.—The re22 mainder of the local homeless assistance board

23 shall represent the following—

24 ‘‘(i) business and labor;

25 ‘‘(ii) neighborhood advocates; and
56

S 1071 IS

1 ‘‘(iii) government officials.

2 ‘‘(3) NOMINATION AND SELECTION OF BOARD

3 MEMBERS.—

4 ‘‘(A) NOMINATION OF BOARD MEMBERS.—

5 The membership of each local homeless assist6 ance board meeting the criteria in paragraph

7 (2)(A) shall have been nominated by individuals

8 and entities, other than a governmental juris9 diction, that represent these groups.

10 ‘‘(B) SELECTION OF BOARD MEMBERS.—

11 In selecting a local homeless assistance board,

12 the chief executive officer of the jurisdiction

13 shall, to the maximum extent practicable, select

14 members who will improve access to a broad

15 range of services for homeless individuals and

16 families and who are sensitive to the varying

17 needs of homeless individuals and families.

18 Each local homeless assistance board shall in19 clude members who, to the maximum extent

20 practicable and consistent with local needs, rep21 resent the different homeless subpopulations in

22 that community.

23 ‘‘(4) WAIVER BY SECRETARY.—The Secretary

24 may waive the requirements of paragraphs (2) and

25 (3), if the jurisdiction has an existing local homeless
57

S 1071 IS

1 assistance board that substantially meets the re2 quirements of such paragraphs.

3 ‘‘(5) REVIEW BY SECRETARY.—A member or

4 members of a local homeless assistance board, or

5 other members of the community, may request the

6 Secretary to review the process for constituting or

7 operating the local homeless assistance board to de8 termine whether the process is fair. If the Secretary

9 finds that the process is unfair and promptly sub10 mits a written justification to the board, the Sec11 retary may disapprove the application under section

12 403 for the jurisdiction.

13 ‘‘(6) CONFLICTS OF INTEREST.—The Secretary

14 shall prescribe standards governing potential con15 flicts of interest under which members of local home16 less assistance boards under this subsection may

17 participate in activities carried out under this title.

18 ‘‘(d) HOMELESS ASSISTANCE BOARDS FOR STATES

19 AND STATE RECIPIENTS.—

20 ‘‘(1) STATE HOMELESS ASSISTANCE BOARD.—

21 ‘‘(A) ESTABLISHMENT AND FUNCTION.—

22 The chief executive officer of the State shall es23 tablish, select, and support a State homeless as24 sistance board, which shall assist the State—
58

S 1071 IS

1 ‘‘(i) by developing the continuum of

2 care system and other submission require3 ments, and by submitting the system and

4 such other submission requirements for its

5 approval under section 403(b);

6 ‘‘(ii) in determining the percentage of

7 the grant that the State should use—

8 ‘‘(I) to carry out its own home9 less assistance program under section

10 408(c)(2)(A); or

11 ‘‘(II) to distribute amounts to

12 State recipients under section

13 408(c)(2)(B);

14 ‘‘(iii) in carrying out the State’s re15 sponsibilities where—

16 ‘‘(I) the Secretary designates the

17 State to administer grant amounts

18 under section 408(b)(3)(A); or

19 ‘‘(II) the State enters into an

20 agreement with a State recipient to

21 administer the State recipient’s

22 amounts under section

23 408(c)(3)(A)(i)(III);
59

S 1071 IS

1 ‘‘(iv) in overseeing the activities car2 ried out with assistance under this title;

3 and

4 ‘‘(v) in preparing the performance re5 port under section 410(b).

6 ‘‘(B) OTHER REQUIREMENTS.—State

7 homeless assistance boards shall be subject to

8 subsections (c)(2) through (6).

9 ‘‘(2) STATE RECIPIENTS.—State recipients shall

10 establish, select, and support a local homeless assist11 ance board comparable (to the extent appropriate) to

12 that described in subsection (c), or may use such

13 other community consultation process as the Sec14 retary shall prescribe.

15 ‘‘(e) LOCAL HOMELESS ASSISTANCE BOARD WHERE

16 SECRETARY IS DISTRIBUTING GRANT AMOUNTS.—

17 ‘‘(1) IN GENERAL.—If the Secretary designates

18 a State or a private nonprofit organization to admin19 ister grant amounts under section 408(b)(3)(A), dis20 tributes grant amounts to a private nonprofit orga21 nization (as provided by section 408(b)(3)(B)), or

22 distributes grant amounts instead of a State under

23 section 408(c)(4), the Secretary shall—

24 ‘‘(A) designate a State or unit of general

25 local government to establish, select, and sup-
60

S 1071 IS

1 port a local homeless assistance board meeting

2 the requirements of subsection (c); or

3 ‘‘(B) enter into a partnership with another

4 entity to establish, select, and support the local

5 homeless assistance board.

6 ‘‘(2) LAWS INAPPLICABLE.—Section 103 of the

7 Department of Housing and Urban Development

8 Reform Act of 1989 shall not apply with respect to

9 the actions of the Secretary referred to in paragraph

10 (1). The Secretary shall establish appropriate stand11 ards under this paragraph to ensure the integrity of

12 the process for awarding assistance.

13 ‘‘(f) AUTHORITY OF SECRETARY.—The Secretary

14 shall establish such procedures as the Secretary deems ap15 propriate for providing a fair hearing and timely resolu16 tion of citizen complaints related to applications or per17 formance reports under this title.

18 ‘‘SEC. 410. PERFORMANCE REPORTS, REVIEWS, AUDITS,

19 AND GRANT ADJUSTMENTS.

20 ‘‘(a) NATIONAL PERFORMANCE MEASURES AND

21 BENCHMARKS.—The Secretary shall establish national

22 performance measures and benchmarks to assist the Sec23 retary, grantees, citizens, and others in assessing the use

24 of funds made available under this title.
61

S 1071 IS

1 ‘‘(b) GRANTEE PERFORMANCE AND EVALUATION

2 REPORT.—Each grantee shall submit to the Secretary a

3 performance and evaluation report prepared by the local

4 homeless assistance board under section 409(c) or (e), or

5 the State homeless assistance board under section 409(d),

6 as appropriate, concerning the use of funds made available

7 under this title. The grantee may modify the report. If

8 the grantee has made changes to the report, the submis9 sion shall also include the comments of the local homeless

10 assistance board or State homeless assistance board on the

11 changes. The report shall be submitted at such time as

12 the Secretary shall prescribe and contain an assessment

13 of the performance of the grantee as measured against

14 any specific performance measures and benchmarks (de15 veloped under section 403), the national performance

16 measures and benchmarks (as established under sub17 section (a)), and such other information as the Secretary

18 shall prescribe. The grantee shall make the report avail19 able to citizens, public agencies, and other interested par20 ties in the jurisdiction of the grantee in sufficient time

21 to permit them to comment on the report before its sub22 mission.

23 ‘‘(c) PERFORMANCE REVIEWS, AUDITS, AND GRANT

24 ADJUSTMENTS.—
62

S 1071 IS

1 ‘‘(1) PERFORMANCE REVIEWS AND AUDITS.—

2 The Secretary shall, not less than annually, make

3 such reviews and audits as may be necessary or ap4 propriate to determine—

5 ‘‘(A) in the case of a grantee (other than

6 a grantee referred to in subparagraph (B)),

7 whether the grantee—

8 ‘‘(i) has carried out its activities in a

9 timely manner;

10 ‘‘(ii) has made progress toward imple11 menting the continuum of care system in

12 conformity with its application under this

13 title; and

14 ‘‘(iii) has carried out its activities and

15 certifications in accordance with the re16 quirements of this title and other applica17 ble laws; and

18 ‘‘(B) in the case of States distributing

19 grant amounts to State recipients, whether the

20 State—

21 ‘‘(i) has distributed amounts to State

22 recipients in a timely manner and in con23 formance with the method of distribution

24 described in its application;
63

S 1071 IS

1 ‘‘(ii) has carried out its activities and

2 certifications in compliance with the re3 quirements of this title and other applica4 ble laws; and

5 ‘‘(iii) has made such performance re6 views and audits of the State recipients as

7 may be necessary or appropriate to deter8 mine whether they have satisfied the appli9 cable performance criteria contained in

10 subparagraph (A).

11 ‘‘(2) GRANT ADJUSTMENTS.—Pursuant to sec12 tion 407(b)(4), the Secretary may make appropriate

13 adjustments in the amount of grants in accordance

14 with the Secretary’s findings under this subsection.

15 With respect to assistance made available for State

16 recipients, the Secretary may adjust, reduce, or

17 withdraw such assistance, or take other action as

18 appropriate in accordance with the Secretary’s per19 formance reviews and audits under this subsection,

20 except that amounts already properly expended on

21 eligible activities under this title shall not be recap22 tured or deducted from future assistance to such re23 cipients.
64

S 1071 IS

1 ‘‘SEC. 411. NONDISCRIMINATION IN PROGRAMS AND AC2 TIVITIES.

3 No person in the United States shall, on the ground

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

5 from participation in, be denied the benefits of, or be sub6 jected to discrimination under any program or activity

7 funded in whole or in part with funds made available

8 under this title. Any prohibition against discrimination on

9 the basis of age under the Age Discrimination Act of 1975

10 or with respect to an otherwise qualified individual with

11 a disability, as provided in section 504 of the Rehabilita12 tion Act of 1973, shall also apply to any such program

13 or activity.

14 ‘‘SEC. 412. ENVIRONMENTAL PROTECTION.

15 ‘‘(a) PURPOSE.—The purpose of this section is to au16 thorize a procedure for the assumption of environmental

17 review responsibilities of the Secretary by States, units of

18 general local government, and insular areas in connection

19 with assistance provided under this title. This procedure

20 shall be designed to ensure—

21 ‘‘(1) that the policies of the National Environ22 mental Policy Act of 1969 and other provisions of

23 law which further the purposes of such Act (as spec24 ified by the Secretary) are most effectively imple25 mented in connection with the provision of such as26 sistance; and
65

S 1071 IS

1 ‘‘(2) undiminished protection of the environ2 ment to the public.

3 ‘‘(b) BASIC AUTHORITY.—The Secretary may, in lieu

4 of the environmental protection procedures otherwise ap5 plicable and in accordance with the provisions of this sec6 tion, provide for the release of funds for particular

7 projects or activities upon the request of a recipient of the

8 assistance—

9 ‘‘(1) if the recipient—

10 ‘‘(A) is a State, unit of general local gov11 ernment, or insular area; and

12 ‘‘(B) assumes all of the responsibilities for

13 environmental review, decisionmaking, and ac14 tion pursuant to the Act and the other provi15 sions of law referred to in subsection (a) that

16 would otherwise apply to the Secretary in con17 nection with the provision of assistance to such

18 projects or activities; or

19 ‘‘(2) in the case of other recipients, if the State,

20 unit of general local government, or insular area, as

21 designated by the Secretary, assumes all of the re22 sponsibilities in accordance with paragraph (1)(B).

23 ‘‘(c) PROCEDURE.—The Secretary shall approve the

24 release of funds for projects or activities subject to the
66

S 1071 IS

1 procedures authorized by this section only if the recipient

2 submits to the Secretary a request for such release—

3 ‘‘(1) not less than 15 days before such release,

4 except that this paragraph shall not apply in the

5 case of a project or activity proposed in an area cov6 ered by a declaration by the President of a major

7 disaster or emergency under the Robert T. Stafford

8 Disaster Relief and Emergency Assistance Act; and

9 ‘‘(2) before any commitment of funds or other

10 assistance for such projects (other than for environ11 mental studies and such other purposes as the Sec12 retary shall specify, consistent with the Act and the

13 other provisions of law referred to in subsection (a)).

14 The request for release shall be accompanied by a certifi15 cation by the State, unit of general local government, or

16 insular area which meets the requirements of subsection

17 (e). The Secretary’s approval of any such certification

18 shall be deemed to satisfy the Secretary’s responsibilities

19 under the Act and the other provisions of law referred to

20 in subsection (a), insofar as those responsibilities relate

21 to the provision of assistance for projects to be carried

22 out pursuant thereto which are covered by the certifi23 cation.

24 ‘‘(d) CERTIFICATION.—A certification under the pro25 cedures authorized by this section shall—
67

S 1071 IS

1 ‘‘(1) be in a form acceptable to the Secretary;

2 ‘‘(2) be executed by the chief executive officer

3 or other officer of the State, unit of general local

4 government, or insular area who qualifies as deter5 mined by the Secretary;

6 ‘‘(3) specify that the State, unit of general local

7 government, or insular area has fully carried out its

8 responsibilities, as described in subsection (b); and

9 ‘‘(4) specify that the certifying officer—

10 ‘‘(A) consents to assume the status of a re11 sponsible Federal official under the Act and the

12 other provisions of law referred to in subsection

13 (a), insofar as the provisions of the Act or the

14 other provisions of law apply pursuant to sub15 section (a); and

16 ‘‘(B) is authorized and consents on behalf

17 of the State, unit of general local government,

18 or insular area and himself or herself to accept

19 the jurisdiction of the Federal courts for the

20 purpose of enforcement of the responsibilities as

21 such an official.

22 ‘‘(e) APPROVAL BY STATES.—If a unit of general

23 local government carries out the responsibilities described

24 in subsection (d), the Secretary may permit the State (or,

25 where the assistance is provided through the State, the
68

S 1071 IS

1 Secretary may require the State) to perform those actions

2 of the Secretary described in subsection (c). The perform3 ance of such actions by the State, where permitted or re4 quired by the Secretary, shall be deemed to satisfy the

5 Secretary’s responsibilities referred to in the last sentence

6 of subsection (c).

7 ‘‘(f) IMPLEMENTATION.—

8 ‘‘(1) The Secretary shall implement this section

9 after consultation with the Council on Environ10 mental Quality. The implementation shall include

11 provision—

12 ‘‘(A) for monitoring of the performance of

13 environmental reviews under this section;

14 ‘‘(B) in the discretion of the Secretary, for

15 the provision or facilitation of training for such

16 performance;

17 ‘‘(C) subject to the discretion of the Sec18 retary, for suspension or termination by the

19 Secretary of the assumption under paragraph

20 (1); and

21 ‘‘(D) in the discretion of the Secretary, for

22 the imposition of appropriate sanctions for fail23 ure to comply with responsibilities assumed

24 under this section, including the denial, with25 drawal, reduction, or abatement of assistance.
69

S 1071 IS

1 ‘‘(2) The Secretary’s duty under subparagraph

2 (A) shall not be construed to limit or reduce any re3 sponsibility assumed by a State, unit of general local

4 government, or insular area with respect to any par5 ticular project under this section.

6 ‘‘SEC. 413. CONSULTATION.

7 ‘‘In carrying out the provisions of this title, including

8 their implementation, the Secretary shall consult with

9 other Federal departments and agencies administering

10 programs affecting homeless individuals and families.

11 ‘‘SEC. 414. RETENTION OF RECORDS, REPORTS, AND AU12 DITS.

13 ‘‘(a) RETENTION OF RECORDS.—Each recipient shall

14 keep such records as may be reasonably necessary—

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

16 of the grant amounts, including the types of activi17 ties funded and the nature of populations served

18 with these funds; and

19 ‘‘(2) to ensure compliance with the require20 ments of this title.

21 ‘‘(b) ACCESS TO DOCUMENTS BY THE SECRETARY.—

22 The Secretary shall have access for the purpose of audit

23 and examination to any books, documents, papers, and

24 records of any recipient that are pertinent to grant

25 amounts received in connection with this title.
70

S 1071 IS

1 ‘‘(c) ACCESS TO DOCUMENTS BY THE COMPTROLLER

2 GENERAL.—The Comptroller General of the United

3 States, or any duly authorized representative of the Comp4 troller General, shall have access for the purpose of audit

5 and examination to any books, documents, papers, and

6 records of any recipient that are pertinent to grant

7 amounts received in connection with this title.’’.

8 SEC. 4. REPEAL AND SAVINGS PROVISIONS.

9 (a) TITLE IV BEFORE AMENDMENT BY THIS ACT.—

10 (1) IN GENERAL.—The amendments made by

11 this Act to title IV of the Stewart B. McKinney

12 Homeless Assistance Act shall be effective upon en13 actment.

14 (2) AUTHORITY TO PROVIDE ASSISTANCE.—On

15 and after the effective date of this Act, the Secretary

16 may not make assistance available under title IV (as

17 it existed before such effective date), except pursu18 ant to a legally binding commitment entered into be19 fore that date.

20 (3) LAW GOVERNING.—Any amounts made

21 available under title IV before the effective date of

22 this Act shall continue to be governed by the provi23 sions of that title, as they existed immediately before

24 that date, except that each grantee may, in its dis25 cretion, provide for the use, in accordance with the
71

S 1071 IS

1 provisions of title IV (as amended by this Act), of

2 any such amounts that it has not obligated.

3 (4) STATUS OF FUNDS.—Any amounts appro4 priated under title IV before the effective date of

5 this Act that are available for obligation immediately

6 before such effective date, or that become available

7 for obligation on or after that date, shall be trans8 ferred and added to amounts appropriated for title

9 IV (as amended by this Act), and shall be available

10 for use in accordance with the provisions of such

11 title IV. Any amounts so transferred shall remain

12 available for obligation only for the time periods for

13 which such respective amounts were available before

14 such transfer.

15 (b) INNOVATIVE HOMELESS INITIATIVES DEM16 ONSTRATION.—

17 (1) IN GENERAL.—Section 2 of the HUD Dem18 onstration Act of 1993 is hereby repealed.

19 (2) AUTHORITY TO PROVIDE ASSISTANCE.—On

20 and after the effective date of this Act, the Secretary

21 may not make assistance available under section 2

22 (as it existed immediately before such effective date),

23 except pursuant to a legally binding commitment en24 tered into before that date.
72

S 1071 IS

1 (3) LAW GOVERNING.—Any amounts made

2 available under section 2 before the effective date of

3 this Act shall continue to be governed by the provi4 sions of that section, as they existed immediately be5 fore that date, except that each grantee may, in its

6 discretion, provide for the use, in accordance with

7 the provisions of title IV (as amended by this Act),

8 of any such amounts that it has not obligated.

9 (4) STATUS OF FUNDS.—Any amounts appro10 priated under section 2 before the effective date of

11 this Act that are available for obligation immediately

12 before such date, or that become available for obliga13 tion on or after that date, shall be transferred and

14 added to amounts appropriated for title IV (as

15 amended by this Act), and shall be available for use

16 in accordance with the provisions of such title IV.

17 Any amounts so transferred shall remain available

18 for obligation only for the time periods for which

19 such respective amounts were available before such

20 transfer.

21 SEC. 5. IMPLEMENTATION.

22 (a) INITIAL ALLOCATION OF ASSISTANCE.—Not later

23 than the expiration of the 60-day period following the date

24 of enactment of a law appropriating funds to carry out

25 title IV (as amended by this Act), the Secretary shall no-
73

S 1071 IS

1 tify each allocation unit of general local government, insu2 lar area, and State of its allocation under the Homeless

3 Assistance Performance Fund.

4 (b) ISSUANCE OF NECESSARY REGULATIONS.—Not5 withstanding 42 U.S.C. 3535(o) or 24 CFR part 10, the

6 Secretary shall issue such regulations as may be necessary

7 to implement any provision of title I of this Act, and any

8 amendment made by title I of this Act, in accordance with

9 section 552 or 553 of title 5, United States Code, as deter10 mined by the Secretary.

11 (c) USE OF EXISTING RULES.—In implementing any

12 provision of title I of this Act, the Secretary may, in the

13 Secretary’s discretion, provide for the use of existing rules

14 to the extent appropriate, without the need for further

15 rulemaking.

16 SEC. 6. REPORT AND ALLOCATION METHOD.

17 (a) REPORT.—Within two years of enactment of this

18 Act, the Secretary shall submit a report to Congress. The

19 report shall include—

20 (1) an assessment of the progress of establish21 ing continuum of care systems for homeless individ22 uals under title IV of the Stewart B. McKinney

23 Homeless Assistance Act (as amended by this Act);
74

S 1071 IS

1 (2) any recommendations for amendments to

2 the program structure under such title IV to better

3 serve homeless individuals;

4 (3) an analysis of the best available methodolo5 gies for measuring the geographic distribution of

6 homelessness; and

7 (4) one or more options for a method for allo8 cating assistance under section 407(b) of such title

9 IV.

10 (b) ALLOCATION METHOD.—Not less than 90 days

11 after submission of the report to Congress, the Secretary

12 shall publish a proposed rule in the Federal Register set13 ting forth a method for allocating assistance that shall

14 take into account the findings in the report, and such

15 other factors as the Secretary determines to be relevant.

16 The final rule shall take effect not less than nine months

17 after the date that the proposed rule is published.

18 (c) SUPERSEDE ALLOCATION METHOD UNDER

19 TITLE IV.—The authority for the method for allocating

20 assistance established by final rule under subsection (b),

21 and any subsequent amendments to such rule, shall upon

22 promulgation, be the authority for the allocation method,

23 in lieu of the method set forth under section 407(b) of

24 such title IV.
75

S 1071 IS

1 SEC. 7. CONFORMING CHANGES TO TABLE OF CONTENTS.

2 Section 101(b) of the Stewart B. McKinney Homeless

3 Assistance Act is amended by striking the matter relating

4 to the heading for title IV and all that follows through

5 the item relating to section 492 and inserting the follow6 ing:

‘‘TITLE IV—HOMELESS ASSISTANCE PERFORMANCE FUND

‘‘Sec. 401. Definitions.

‘‘Sec. 402. Authorizations.

‘‘Sec. 403. Application.

‘‘Sec. 404. Eligible Projects and Activities.

‘‘Sec. 405. Matching Requirement and Maintenance of Effort.

‘‘Sec. 406. Responsibilities of Recipients, Project Sponsors, and Owners.

‘‘Sec. 407. Allocation and Distribution of Funds.

‘‘Sec. 408. Administration of Program.

‘‘Sec. 409. Citizen Participation.

‘‘Sec. 410. Performance Reports, Reviews, Audits, and Grant Adjustments.

‘‘Sec. 411. Nondiscrimination in Programs and Activities.

‘‘Sec. 412. Environmental Protection.

‘‘Sec. 413. Consultation.

‘‘Sec. 414. Retention of Records, Reports, and Audits.’’.

7 TITLE II—MANAGEMENT IM8 PROVEMENTS: HOME AND

9 HOPE FOR HOMEOWNERSHIP

10 OF SINGLE FAMILY HOMES

11 PROGRAMS

12 SEC. 11. DETERMINATION OF LOW-INCOME ELIGIBILITY

13 FOR HOME HOMEOWNERSHIP ASSISTANCE.

14 (a) INCOME TARGETING.—Section 214(2) of the

15 Cranston-Gonzalez National Affordable Housing Act is

16 amended by striking ‘‘at the time of occupancy or at the

17 time funds are invested, whichever is later’’.
76

S 1071 IS

1 (b) QUALIFICATION AS AFFORDABLE HOUSING.—

2 Section 215(b)(2) of such Act is amended to read as fol3 lows:

4 ‘‘(2) is the principal residence of an owner

5 whose family qualifies as a low-income family—

6 ‘‘(A) in the case of a contract to purchase

7 existing housing, at the time of purchase;

8 ‘‘(B) in the case of a lease-purchase agree9 ment for existing housing or for housing to be

10 constructed, at the time the agreement is

11 signed; or

12 ‘‘(C) in the case of a contract to purchase

13 housing to be constructed, at the time the con14 tract is signed;’’.

15 SEC. 12. STABILIZATION OF HOME FUNDING THRESHOLDS

16 AND REVISION OF TIMING REQUIREMENTS

17 FOR NOTIFICATIONS AND SUBMISSIONS.

18 (a) PARTICIPATION BY STATES AND LOCAL GOVERN19 MENTS.—Section 216 of the Cranston-Gonzalez National

20 Affordable Housing Act is amended—

21 (1) in paragraph (1), by striking ‘‘(or, during

22 the first year after enactment of this Act, not later

23 than 20 days after (A) funds to carry out this sub24 title are provided in an appropriations Act, or (B)
77

S 1071 IS

1 regulations to implement this subtitle are promul2 gated, whichever is later)’’;

3 (2) by revising paragraph (3) to read as follows:

4 ‘‘(3) ELIGIBILITY.—A jurisdiction shall be eligi5 ble to become a participating jurisdiction if its for6 mula allocation under section 217 is $500,000 or

7 more.’’;

8 (3) in paragraph (4), by striking ‘‘not later

9 than 30 days after receiving notification under para10 graph (1)’’ and inserting ‘‘within a period specified

11 by the Secretary’’;

12 (4) by revising paragraph (5) to read as follows:

13 ‘‘(5) SUBMISSION OF STRATEGY.—An eligible

14 jurisdiction shall submit to the Secretary, within a

15 period specified by the Secretary, a comprehensive

16 housing affordability strategy in accordance with

17 section 105.’’;

18 (5) by revising the first sentence of paragraph

19 (9) to read as follows:

20 ‘‘The Secretary may revoke a jurisdiction’s designa21 tion as a participating jurisdiction if the Secretary

22 finds, after reasonable notice and opportunity for

23 hearing, that the jurisdiction is unwilling or unable

24 to carry out the provisions of this title.’’; and

25 (6) by striking paragraph (10).
78

S 1071 IS

1 (b) FORMULA ALLOCATION.—Section 217(b) of the

2 Cranston-Gonzalez National Affordable Housing Act is

3 amended—

4 (1) in paragraph (3)—

5 (A) in the first sentence, by striking ‘‘only

6 those jurisdictions that are allocated an amount

7 of $500,000 or greater shall receive an alloca8 tion’’ and inserting in lieu thereof the following:

9 ‘‘jurisdictions that are allocated an amount of

10 $500,000 or more, and participating jurisdic11 tions that are allocated an amount less than

12 $500,000 except consortia that fail to renew the

13 membership of all of their member jurisdictions,

14 shall receive an allocation’’; and

15 (B) in the second sentence, by striking ‘‘,

16 except as provided in paragraph (4)’’; and

17 (2) by striking paragraph (4).

18 SEC. 13. DETERMINATION OF HOME MATCH ON PROGRAM

19 YEAR BASIS.

20 Section 220(a), section 220(d)(1), sections

21 220(d)(3)(A) and (B), and section 220(d)(5) of the Cran22 ston-Gonzalez National Affordable Housing Act are

23 amended by striking ‘‘fiscal year’’ each place it appears

24 and inserting ‘‘program year’’.
79

S 1071 IS

1 SEC. 14. TENANT AND PARTICIPANT PROTECTIONS UNDER

2 THE HOME PROGRAM.

3 The second sentence of section 225(b) of the Cran4 ston-Gonzalez National Affordable Housing Act is amend5 ed to read as follows: ‘‘Any termination or refusal to renew

6 shall be consistent with applicable State and local law.’’.

7 SEC. 15. ELIGIBILITY OF PRIVATE PROPERTY UNDER THE

8 HOPE FOR HOMEOWNERSHIP OF SINGLE

9 FAMILY HOMES PROGRAM.

10 Section 446(4) of the Cranston-Gonzalez National

11 Affordable Housing Act is amended to read as follows:

12 ‘‘(4) The term ‘eligible property’ means a single

13 family property containing no more than four

14 units.’’.

Æ