I

104TH CONGRESS

2D SESSION H. R. 3964

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

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

are provided sufficient flexibility to use assistance amounts effectively.

IN THE HOUSE OF REPRESENTATIVES

AUGUST 2, 1996

Mr. LAZIO of New York introduced the following bill; which was referred to

the Committee on Banking and Financial Services

A BILL

To amend title IV of the Stewart B. McKinney Homeless

Assistance Act to consolidate the Federal programs for

housing assistance for the homeless into a block grant

program that ensures that States and communities are

provided sufficient flexibility to use assistance amounts

effectively.

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

3 SECTION 1. SHORT TITLE.

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

5 Programs Consolidation and Flexibility Act’’.
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1 SEC. 2. FINDINGS AND PURPOSES.

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

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

5 and appropriate shelter;

6 (2) assistance from the Federal Government is

7 an important factor in the success of efforts by

8 State and local governments and the private sector

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

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

14 Native Americans, and veterans;

15 (4) many of the Federal programs for the

16 homeless have overlapping objectives, resulting in

17 multiple sources of Federal funding for the same or

18 similar purposes;

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

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

23 efforts;

24 (6) effective homelessness treatment should pro25 vide a range of housing options (including transi26 tional and permanent housing) and, while not all
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1 homeless individuals and families attain self-suffi2 ciency and independence by utilizing transitional

3 housing and then permanent housing, in many cases

4 such individuals and families are best able to reenter

5 society directly through permanent supportive hous6 ing;

7 (7) supportive housing activities support home8 less persons in an environment that can meet their

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

10 reenter society as appropriate;

11 (8) homelessness should be treated as part of a

12 symptom of many neighborhood and community

13 problems, whose remedies require a holistic approach

14 integrating all available resources;

15 (9) there are many private sector entities, par16 ticularly nonprofit organizations, that have success17 fully operated homeless programs;

18 (10) government restrictions and regulations

19 may discourage and impede innovative approaches to

20 homelessness, such as coordination of the various

21 types of assistance that are required by homeless

22 persons; and

23 (11) the Federal Government has a responsibil24 ity to establish partnerships with State and local
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1 governments and the private sector to address com2 prehensively the problems of homelessness.

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

4 (1) to consolidate the existing housing pro5 grams for homeless persons under title IV of the

6 Stewart B. McKinney Homeless Assistance Act into

7 a single block grant program for housing assistance

8 for the homeless;

9 (2) to allow flexibility and creativity in rethink10 ing solutions to homelessness, including alternative

11 housing strategies and a competitive and much im12 proved service sector; and

13 (3) to provide Federal assistance to reduce

14 homelessness on a basis that requires recipients of

15 such assistance to supplement the federally provided

16 amounts and thereby guarantee the provision of a

17 certain level of housing and complimentary services

18 necessary to meet the needs of the homeless popu19 lation.

20 SEC. 3. GENERAL PROVISIONS.

21 Title I of the Stewart B. McKinney Homeless Assist22 ance Act (42 U.S.C. 11301 et seq.) is amended—

23 (1) by striking section 102;

24 (2) in section 103—
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1 (A) in subsection (a), by striking ‘‘the

2 term ‘homeless’ or ‘homeless individual or

3 homeless person’ includes’’ and inserting ‘‘the

4 terms ‘homeless’, ‘homeless individual’ and

5 ‘homeless person’ include’’; and

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

7 ‘homeless’ or ‘homeless individual’ does not in8 clude’’ and inserting ‘‘the terms ‘homeless’,

9 ‘homeless individual’ and ‘homeless person’ do

10 not include’’; and

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

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

13 SEC. 4. RENTAL ASSISTANCE AND FLEXIBLE HOMELESS AS14 SISTANCE PROGRAM.

15 (a) IN GENERAL.—Title IV of the Stewart B. McKin16 ney Homeless Assistance Act (42 U.S.C. 11361 et seq.)

17 is amended to read as follows:

18 ‘‘TITLE IV—BLOCK GRANTS FOR

19 RENTAL ASSISTANCE AND

20 FLEXIBLE HOMELESS ASSIST21 ANCE GRANTS

22 ‘‘Subtitle A—General Provisions

23 ‘‘SEC. 401. PURPOSE.

24 ‘‘The purpose of the program under this title is to

25 provide assistance for rental housing for homeless persons
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1 and promote the development of various housing assist2 ance activities for homeless persons to enable homeless

3 persons to live as independently as possible, including as4 sistance in the form of supportive housing, emergency

5 shelters, supportive services, and activities to prevent

6 homelessness.

7 ‘‘SEC. 402. GRANT AUTHORITY.

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

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

10 metropolitan cities, urban counties, and the insular areas

11 for carrying out eligible activities under subtitles B and

12 C.

13 ‘‘(b) GRANT AMOUNTS.—Except as otherwise pro14 vided under this title, amounts for a fiscal year allocated

15 under section 406 shall be used as follows:

16 ‘‘(1) INSULAR AREAS.—Any amounts for the

17 fiscal year allocated under section 406(a) for an in18 sular area shall be used for a grant to the eligible

19 grantee for the insular area for such fiscal year.

20 ‘‘(2) RENTAL ASSISTANCE.—Any amounts allo21 cated under section 406(b) for a State shall be used

22 for a grant to the State for such fiscal year.

23 ‘‘(3) FLEXIBLE HOMELESS ASSISTANCE.—Any

24 amounts allocated under section 406(c) for a State

25 or for a metropolitan city or urban county shall be
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1 used for a grant to the eligible grantee for the State,

2 or for the metropolitan city or urban county, respec3 tively, for the fiscal year.

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

5 amounts provided under this title and any supplemental

6 funds provided under section 407 may be used only as fol7 lows:

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

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

10 for eligible activities under subtitle C benefiting the

11 insular area.

12 ‘‘(2) STATE RENTAL ASSISTANCE GRANTS.—In

13 the case of a grant under subsection (b)(2) to a

14 State, for eligible activities under subtitle B within

15 the State.

16 ‘‘(3) FLEXIBLE HOMELESS ASSISTANCE

17 GRANTS.—In the case of a grant under subsection

18 (b)(3) for a State, or for a metropolitan city or

19 urban county, for eligible activities under subtitle C

20 benefiting the State, or the city or county, and car21 ried out only within nonentitlement areas of the

22 State or within the city or county, as applicable.

23 ‘‘SEC. 403. ELIGIBLE GRANTEES.

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

25 has the following meaning:
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1 ‘‘(1) GRANTS FOR INSULAR AREAS.—In the

2 case of a grant from amounts allocated under sec3 tion 406(a) for an insular area, such term means—

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

5 or other entity of the area; or

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

7 private nonprofit organization is authorized by

8 the government of the insular area to act as the

9 grantee for the area for purposes of this title,

10 such private nonprofit entity.

11 ‘‘(2) GRANTS TO STATES FOR RENTAL ASSIST12 ANCE.—In the case of a grant from amounts allo13 cated under section 406(b) for a State, such term

14 means the State or an agency, office, or other entity

15 of the State.

16 ‘‘(3) GRANTS FOR FLEXIBLE HOMELESS AS17 SISTANCE.—In the case of a grant from amounts al18 located under section 406(c) for a State, or for a

19 metropolitan city or urban county, such term

20 means—

21 ‘‘(A) the State, or the metropolitan city or

22 urban county, respectively, or an agency, office,

23 or other entity of the State, or the city or coun24 ty; or
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1 ‘‘(B) to the extent that a private nonprofit

2 organization is authorized by the government of

3 the State, or the city or county, to act as the

4 grantee for the State, or the city or county, for

5 purposes of this title, such private nonprofit or6 ganization.

7 ‘‘SEC. 404. USE OF GRANT AMOUNTS BY PROJECT SPON8 SORS.

9 ‘‘(a) TRANSFER OF GRANT AMOUNTS BY GRANT10 EES.—Eligible activities assisted with grant amounts pro11 vided under this title may be carried out directly by the

12 grantee or by other entities serving as project sponsors,

13 which are provided such grant amounts by the grantee or

14 a subgrantee of the grantee.

15 ‘‘(b) COMPETITIVE SELECTION CRITERIA.—To the

16 extent that a grantee does not use grant amounts for eligi17 ble activities carried out directly by the grantee, the grant18 ee shall select eligible activities for assistance and project

19 sponsors to carry out such eligible activities pursuant to

20 a competition based on criteria established by the Sec21 retary, which shall include—

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

23 out the activity is financially responsible;

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

25 out the eligible activity;
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1 ‘‘(3) the need for the type of eligible activity in

2 the area to be served;

3 ‘‘(4) the extent to which the amount of assist4 ance to be provided with grant amounts will be sup5 plemented with resources from other public and pri6 vate sources;

7 ‘‘(5) the cost-effectiveness of the proposed eligi8 ble activity;

9 ‘‘(6) the extent to the which the project sponsor

10 carrying out the eligible activity will coordinate with

11 other Federal, State, local, private and other entities

12 serving homeless persons in the planning and oper13 ation of the activity, to the extent practicable, and

14 pursuant to section 408(j)(3) will carry out the ac15 tivity in coordination and conjunction with federally

16 funded activities for the homeless; and

17 ‘‘(7) such other factors as the Secretary deter18 mines to be appropriate to carry out this title in an

19 effective and efficient manner.

20 ‘‘SEC. 405. COMPREHENSIVE HOUSING AFFORDABILITY

21 STRATEGY COMPLIANCE.

22 ‘‘A grant under this title may be provided to an eligi23 ble grantee only if—

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

25 grant amounts are allocated under section 406 has
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1 submitted to the Secretary a comprehensive housing

2 affordability strategy under section 105 of the Cran3 ston-Gonzalez National Affordable Housing Act that

4 has been approved by the Secretary and is in effect

5 for the fiscal year for which such grant amounts are

6 to be provided; and

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

10 the Secretary that the eligible activities to be as11 sisted with such grant amounts are or will be con12 sistent with the comprehensive housing affordability

13 strategy for the jurisdiction and the plans in such

14 strategy for addressing housing needs for homeless

15 families.

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

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

18 amount made available for grants under this title for a

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

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

22 ‘‘(b) ALLOCATION FOR RENTAL ASSISTANCE ACTIVI23 TIES.—

24 ‘‘(1) ANNUAL PORTION OF APPROPRIATED

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

2 remains after amounts are reserved under subsection

3 (a), the Secretary shall allocate 70 percent for

4 States for use under subtitle B.

5 ‘‘(2) DETERMINATION OF ALLOCATED

6 AMOUNT.—Except as provided in subsection (e), the

7 Secretary shall allocate amounts available for use

8 under subtitle B for a fiscal year so that, for each

9 State, the percentage of the total amount so avail10 able that is allocated for a State is equal to the per11 centage of the total amount available for section 106

12 of the Housing and Community Development Act of

13 1974 for the prior fiscal year that was allocated for

14 such State and for metropolitan cities and urban

15 counties located in such State.

16 ‘‘(c) ALLOCATION FOR FLEXIBLE HOMELESS AS17 SISTANCE GRANTS.—

18 ‘‘(1) ANNUAL PORTION OF APPROPRIATED

19 AMOUNT AVAILABLE.—Of the amount made avail20 able for grants under this title for a fiscal year that

21 remains after amounts are reserved under subsection

22 (a), the Secretary shall allocate 30 percent for use

23 under subtitle C. Of such amount allocated for use

24 under subtitle C for a fiscal year, 70 percent shall
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1 be allocated for metropolitan cities and urban coun2 ties and 30 percent shall be allocated for States.

3 ‘‘(2) DETERMINATION OF ALLOCATED

4 AMOUNT.—Except as provided in subsection (e), the

5 Secretary shall allocate amounts available for use

6 under subtitle C for a fiscal year so that—

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

8 county, the percentage of the total amount allo9 cated under this subsection for cities and coun10 ties that is allocated for such city or county is

11 equal to the percentage of the total amount

12 available for the preceding fiscal year under

13 section 106(b) of the Housing and Community

14 Development Act of 1974 for grants to metro15 politan cities and urban counties that was allo16 cated for such city or county; and

17 ‘‘(B) for each State, the percentage of the

18 total amount allocated under this subsection for

19 States that is allocated for such State is equal

20 to the percentage of the total amount available

21 for the preceding fiscal year under section

22 106(d) of the Housing and Community Devel23 opment Act of 1974 for grants to States that

24 was allocated for such State.
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1 ‘‘(d) REALLOCATION OF AMOUNTS.—Except as pro2 vided in subsection (e), the Secretary shall reallocate

3 amounts allocated under subsection (a), (b), or (c) as fol4 lows:

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

6 during each fiscal year, the Secretary shall reallocate

7 any amounts allocated under this section that—

8 ‘‘(A) are allocated for a State, metropoli9 tan city or urban county, or insular area, but

10 not provided to an eligible grantee for the juris11 diction because of failure to apply for a grant

12 under this title or failure to comply with the re13 quirements of this title;

14 ‘‘(B) were provided to a grantee and (i) re15 captured under this title, or (ii) not utilized by

16 the grantee in accordance with the purposes

17 and objectives of the approved application of

18 the grantee within a reasonable time period,

19 which the Secretary shall establish; or

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

21 time of such reallocation.

22 Any amounts allocated under subsection (b) that be23 come available for reallocation under this subsection

24 shall be reallocated only among other States for as25 sistance for use under subtitle B. Any amounts allo-
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1 cated under subsection (c) that become available for

2 reallocation under this subsection shall be reallo3 cated only for assistance for use under subtitle C.

4 ‘‘(2) FAILURE TO COMPLY WITH COMPREHEN5 SIVE HOUSING AFFORDABILITY STRATEGY REQUIRE6 MENT.—Notwithstanding paragraph (1), if, for any

7 fiscal year, a metropolitan city or urban county fails

8 to comply with the requirement under section 405(1)

9 during the 90-day period beginning on the date that

10 amounts for grants under this title for such fiscal

11 year first become available for allocation, the

12 amounts that would have been allocated under sub13 section (c) of this section for such city or county

14 shall be reallocated for the State in which the unit

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

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

17 that cannot be allocated for a State under the pre18 ceding sentence shall be reallocated for other metro19 politan cities and urban counties and States that

20 comply with such requirement and demonstrate ex21 traordinary need or large numbers of homeless per22 sons, as determined by the Secretary.

23 ‘‘(e) MINIMUM ALLOCATION REQUIREMENT.—If, by

24 December 1 of any fiscal year, the amount appropriated
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1 for grants under this title for such fiscal year is less than

2 $750,000,000—

3 ‘‘(1) the Secretary shall not allocate amounts

4 for such fiscal year under subsections (b) and (c);

5 ‘‘(2) subsection (d) shall not apply to amounts

6 for such fiscal year; and

7 ‘‘(3) notwithstanding any other provision of this

8 title, the Secretary shall make grants under this title

9 from such amounts to States, units of general local

10 government, and private nonprofit organizations,

11 pursuant to a national competition based on the cri12 teria specified in section 425.

13 ‘‘SEC. 407. MATCHING FUNDS REQUIREMENT.

14 ‘‘(a) SUPPLEMENTATION BY GRANTEE.—

15 ‘‘(1) IN GENERAL.—Each State, metropolitan

16 city or urban county, and insular area for which a

17 grant under this title is made shall—

18 ‘‘(A) supplement the amount of the grant

19 provided under this title with an amount of

20 funds from sources other than this title, as pro21 vided under paragraph (2); and

22 ‘‘(B) certify to the Secretary its compli23 ance with this section, which shall include only

24 a description of the sources and amounts of

25 such supplemental funds and, if applicable, the
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1 compliance of the grantee with the require2 ments under section 421(b).

3 ‘‘(2) AMOUNT.—

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

5 subparagraph (B), the amount provided under

6 this paragraph shall be an amount that is not

7 less than 50 percent of the amount of the grant

8 under this title.

9 ‘‘(B) RENTAL ASSISTANCE.—In the case of

10 a grant to a State under paragraph (2) or (3)

11 of section 402(b)(2), the amount provided

12 under this paragraph shall be—

13 ‘‘(i) if the grant exceeds $100,000,

14 the amount that is not less than the dif15 ference between the amount received under

16 the grant and $100,000; and

17 ‘‘(ii) if the grant does not exceed

18 $100,000, $0.

19 ‘‘(b) AUTHORITY FOR GRANTEES TO REQUIRE

20 SUPPLEMENTATION.—Each grantee under this title may

21 require any subgrantee or project sponsor to whom it pro22 vides such grant amounts to supplement the amount of

23 such grant amounts provided with an amount of funds

24 from sources other than this title, except that the grantee

25 may not require supplementation in an amount exceeding
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1 25 percent of the amount of grant amounts provided to

2 the subgrantee or project sponsor. Supplemental amounts

3 provided by a subgrantee or project sponsor pursuant to

4 this subsection shall not be considered supplemental

5 amounts for purposes of any grantee complying with the

6 requirement under subsection (a).

7 ‘‘(c) USE.—Any supplemental funds made available

8 in compliance with this section shall be available only to

9 carry out eligible activities (1) under the subtitle B, if the

10 grant amounts are available only for such activities, or (2)

11 under subtitle C, if the grant amounts are available only

12 for such activities.

13 ‘‘(d) SUPPLEMENTAL FUNDS.—In determining the

14 amount of supplemental funds provided in accordance with

15 this section, the following amounts may be included:

16 ‘‘(1) The value of any donated material or

17 building.

18 ‘‘(2) The value of any lease on a building.

19 ‘‘(3) The proceeds from bond financing validly

20 issued by a State or unit of general local govern21 ment, agency, or instrumentality thereof, and repay22 able with revenues derived from the activity assisted

23 under this title, except that not more than 25 per24 cent of the supplemental amounts required under

25 this section may result from this paragraph.
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1 ‘‘(4) The amount of any salary paid to staff to

2 carry out a program for eligible activities under sub3 title B or C.

4 ‘‘(5) The cost or value of any donated good or

5 services (including supportive services provided, but

6 not including the value of any time or services con7 tributed by volunteers).

8 ‘‘SEC. 408. PROGRAM REQUIREMENTS.

9 ‘‘(a) APPLICATIONS.—

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

11 may make a grant under this title only pursuant to

12 an application for a grant submitted by an eligible

13 grantee in the form and in accordance with the pro14 cedures established by the Secretary. The Secretary

15 may not give preference or priority to any applica16 tion on the basis that the application was submitted

17 by any particular type of eligible grantee.

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

19 that applications contain at a minimum the following

20 information:

21 ‘‘(A) GRANTS FOR RENTAL ASSISTANCE.—

22 In the case of an application for a grant avail23 able for use for activities under subtitle B—
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1 ‘‘(i) a description of the rental assist2 ance activities under subtitle B to be as3 sisted; and

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

5 will carry out such activities and the pro6 grams for carrying out such activities.

7 ‘‘(B) GRANTS FOR FLEXIBLE HOMELESS

8 ASSISTANCE.—In the case of an application for

9 a grant available for use for activities under

10 subtitle C—

11 ‘‘(i) a description of the eligible activi12 ties to be assisted, to the extent available

13 at the time;

14 ‘‘(ii) in the case of a grant for a facil15 ity assisted under paragraph (1) or (2) of

16 section 421(a), assurances satisfactory to

17 the Secretary that the facility will be com18 ply with the requirement under section

19 423(e)(1);

20 ‘‘(iii) in the case of a grant for a sup21 portive housing facility assisted under this

22 title that does not receive assistance under

23 either such paragraph, annual assurances

24 during the period specified in the applica25 tion that the facility will be operated for
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1 the purpose specified in the application for

2 such period; and

3 ‘‘(iv) in the case of a grant for a sup4 portive housing facility, reasonable assur5 ances that the project sponsor will own or

6 have control of a site for not later than the

7 expiration of the 12-month period begin8 ning upon notification of an award of

9 grant assistance, unless the application

10 proposes providing supportive housing as11 sisted under section 421(a)(3) or housing

12 that will eventually be owned or controlled

13 by the families and individuals served; ex14 cept that a project sponsor may obtain

15 ownership or control of a suitable site dif16 ferent from the site specified in the appli17 cation.

18 ‘‘(C) ALL GRANTS.—In the case of an ap19 plication for any grant under this title—

20 ‘‘(i) a description of the size and char21 acteristics of the population that will be

22 served by the eligible activities assisted

23 with grant amounts;

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

25 private resources that are expected to be
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1 made available in connection with grant

2 amounts provided;

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

4 be used in compliance with section 404(b)

5 to select eligible activities to be assisted

6 and project sponsors; and

7 ‘‘(iv) a certification that the applicant

8 will comply with the requirements of the

9 Fair Housing Act, title VI of the Civil

10 Rights Act of 1964, section 504 of the Re11 habilitation Act of 1973, and the Age Dis12 crimination Act of 1975, and will affirma13 tively further fair housing.

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

15 not provide a grant under this title for any applicant un16 less the applicant agrees—

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

18 out with grant amounts will be carried out in ac19 cordance with the provisions of this title;

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

21 supportive services required by homeless persons as22 sisted by the eligible activities and the availability of

23 such services to such persons;

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

25 under subtitle C for a supportive housing facility or
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1 an emergency shelter, to ensure the provision of

2 such residential supervision as the Secretary deter3 mines is necessary to facilitate the adequate provi4 sion of supportive services to the residents and users

5 of the facility or shelter;

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

7 the Secretary on the progress of the eligible activi8 ties carried out with grant amounts;

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

10 ensure (A) the confidentiality of records pertaining

11 to any individual provided family violence prevention

12 or treatment services through any activities assisted

13 with grant amounts, and (B) that the address or lo14 cation of any family violence shelter facility assisted

15 with grant amounts will not be made public, except

16 with written authorization of the person or persons

17 responsible for the operation of such facility;

18 ‘‘(6) to the maximum extent practicable, to in19 volve homeless persons and families, through em20 ployment, volunteer services, or otherwise, in carry21 ing out eligible activities assisted with grant

22 amounts; and

23 ‘‘(7) to comply with such other terms and con24 ditions as the Secretary may establish to carry out

25 this title in an effective and efficient manner.
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1 ‘‘(c) OCCUPANCY CHARGE.—Each homeless person or

2 family residing in a dwelling unit assisted under subtitle

3 B or C or in a transitional housing facility assisted under

4 subtitle C may be required to pay an occupancy charge

5 in an amount determined by the grantee providing the as6 sistance, which may not exceed an amount equal to 30

7 percent of the adjusted income (as such term is defined

8 in section 3(b) of the United States Housing Act of 1937

9 or any other subsequent provision of Federal law defining

10 such term for purposes of eligibility for, or rental charges

11 in, public housing) of the person or family. Occupancy

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

13 residents in moving to permanent supportive housing.

14 ‘‘(d) FLOOD PROTECTION STANDARDS.—Flood pro15 tection standards applicable to housing acquired, rehabili16 tated, constructed, or assisted with grant amounts pro17 vided under this title shall be no more restrictive than the

18 standards applicable under Executive Order No. 11988

19 (42 U.S.C. 4321 note; relating to floodplain management)

20 to the other programs in effect under this title imme21 diately before the enactment of the Homeless Housing

22 Programs Consolidation and Flexibility Act.

23 ‘‘(e) PARTICIPATION OF HOMELESS INDIVIDUALS.—

24 The Secretary shall, by regulation, require each grantee

25 to ensure that each project sponsor assisted by the grantee
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1 provides for the participation of not less than 1 homeless

2 person or former homeless person on the board of direc3 tors or other equivalent policymaking entity of the project

4 sponsor, to the extent that such sponsor considers and

5 makes policies and decisions regarding any activity or fa6 cility, supportive services, or assistance provided with

7 grant amounts under this title. The Secretary shall pro8 vide that a grantee may grant waivers to project sponsors

9 unable to meet the requirement under the preceding sen10 tence if the sponsor agrees to otherwise consult with home11 less or formerly homeless person in considering and mak12 ing such policies and decisions.

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

14 amounts received under this title (or any funds provided

15 under section 407 or otherwise to supplement such grants)

16 may be used to replace other State or local funds pre17 viously used, or designated for use, to assist homeless per18 sons.

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

20 Notwithstanding any other provision of this title, of any

21 grant amounts under this title used to carry out eligible

22 activities, the grantee or the project sponsor may use an

23 amount not exceeding 5 percent for administrative pur24 poses.

25 ‘‘(h) HOUSING QUALITY.—
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1 ‘‘(1) REQUIREMENT.—Assistance may not be

2 provided with grant amounts made available for use

3 under this title for any dwelling unit, supportive

4 housing facility, or emergency shelter that fails to

5 comply with the housing quality standards applicable

6 under paragraph (2) in the jurisdiction in which the

7 housing is located, unless the deficiency is promptly

8 corrected and the project sponsor verifies the correc9 tion.

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

11 quality standards applicable under this subsection to

12 a dwelling unit, supportive housing facility, or emer13 gency shelter shall be—

14 ‘‘(A) in the case of a unit, facility, or shel15 ter located in a jurisdiction which has in effect

16 laws, regulations, standards, or codes regarding

17 habitability of such units, facilities, or shelters

18 that provide protection to residents of the dwell19 ings that is equal to or greater than the protec20 tion provided under the housing quality stand21 ards established under paragraph (3), such ap22 plicable laws, regulations, standards, or codes;

23 or

24 ‘‘(B) in the case of a unit, facility, or shel25 ter located in a jurisdiction which does not have
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1 in effect laws, regulations, standards, or codes

2 described in subparagraph (A), the housing

3 quality standards established under paragraph

4 (3).

5 ‘‘(3) FEDERAL HOUSING QUALITY STAND6 ARDS.—The Secretary shall establish housing quality

7 standards under this paragraph that ensure that

8 dwelling units, supportive housing facilities, and

9 emergency shelters assisted under this title are safe,

10 clean, and healthy. Such standards shall include re11 quirements relating to habitability, including mainte12 nance, health and sanitation factors, condition, and

13 construction of dwellings. The Secretary shall dif14 ferentiate between major and minor violations of

15 such standards and may establish separate stand16 ards for dwelling units, supportive housing facilities,

17 and emergency shelters.

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

19 family (not including residents of an emergency shelter)

20 who receives assistance under this title under a program

21 assisted with grant amounts under this title violates pro22 gram requirements, the project sponsor may terminate as23 sistance in accordance with a formal process established

24 by such sponsor that recognizes the rights of individuals
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•HR 3964 IH

1 receiving such assistance to due process of law, which may

2 include a hearing.

3 ‘‘(j) COORDINATION WITH HOMELESS PROGRAMS.—

4 ‘‘(1) PURPOSE.—The purpose of the consulta5 tion and coordination required under this subsection

6 is to provide various services, activities, and assist7 ance for homeless persons and families in an effi8 cient, effective, and targeted manner designed to

9 meet the comprehensive needs of the homeless.

10 ‘‘(2) COORDINATION BY FEDERAL AGENCIES.—

11 The Secretary of Housing and Urban Development,

12 the Secretary of Health and Human Services, the

13 Secretary of Labor, the Secretary of Education, the

14 Secretary of Veterans Affairs, and the Secretary of

15 Agriculture shall consult and coordinate, and may

16 establish any requirements necessary, to ensure that

17 assistance for federally funded activities for the

18 homeless provided by such Secretary is made avail19 able, to the greatest extent practicable, in conjunc20 tion and coordination with assistance for other

21 federally funded activities for the homeless and with

22 assistance under this title.

23 ‘‘(3) REQUIREMENTS FOR HOUSING ASSIST24 ANCE.—The Secretary shall establish such require25 ments as the Secretary considers necessary to ensure
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•HR 3964 IH

1 that grant amounts provided under this title are

2 used by grantees and project sponsors, to the great3 est extent practicable, in coordination and in con4 junction with federally funded activities for the

5 homeless.

6 ‘‘(4) DEFINITION.—For purposes of this sub7 section, the term ‘federally funded activities for the

8 homeless’ means activities to assist homeless persons

9 or homeless families that are funded (in whole or in

10 part) with amounts provided by the Federal Govern11 ment (other than amounts provided under this title)

12 and includes—

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

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

15 Health Service Act;

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

17 and community services under title VII of the

18 Stewart B. McKinney Homeless Assistance Act;

19 ‘‘(C) food assistance for homeless persons

20 and families through the food programs under

21 the Food Stamp Act of 1977 and the Emer22 gency Food Assistance Act of 1983;

23 ‘‘(D) the job training, housing, and medi24 cal programs for homeless veterans of the De25 partment of Veterans Affairs;
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1 ‘‘(E) the job corps centers for homeless

2 families program under section 433A of the Job

3 Training Partnership Act

4 ‘‘(F) the program for preventive services

5 for children of homeless families or families at

6 risk of homelessness under title III of the Child

7 Abuse Prevention and Treatment Act;

8 ‘‘(G) the programs under the Runaway

9 and Homeless Youth Act; and

10 ‘‘(H) assistance for homeless persons and

11 families under the aid to families with depend12 ent children and supplemental security income

13 programs under part A of title IV and title

14 XVI, respectively, of the Social Security Act).

15 ‘‘(5) COMPANION SERVICES BLOCK GRANTS IN

16 CASES OF FAILURE TO COMPLY.—

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

18 the Secretary of Housing and Urban Develop19 ment determines that adequate coordination has

20 not taken place to ensure that assistance for

21 federally funded activities for the homeless is

22 made available in conjunction and coordination

23 with assistance under this title (as required

24 under paragraph (2)), and the Interagency

25 Council on the Homeless concurs in the deter-
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•HR 3964 IH

1 mination, the Secretary shall carry out a pro2 gram under subparagraph (B) to make compan3 ion services block grants available for such fis4 cal year.

5 ‘‘(B) COMPANION SERVICE BLOCK

6 GRANTS.—The block grant program under this

7 subparagraph shall provide block grants, using

8 amounts available pursuant to subparagraph

9 (C), to eligible grantees under this title to pro10 vide services of the type available under the

11 programs referred to in paragraph (4) in con12 nection with housing assistance under this title.

13 The Secretary shall consult with the Inter14 agency Council on the Homeless in establishing

15 and carrying out the block grant program

16 under this paragraph.

17 ‘‘(C) FUNDING.—

18 ‘‘(i) IN GENERAL.—Notwithstanding

19 any other provision of law, in any fiscal

20 year in which block grants are to be pro21 vided in accordance with subparagraph

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

23 grants, from the amount made available

24 for such fiscal year for each activity re25 ferred to in paragraph (4), 10 percent of
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•HR 3964 IH

1 the portion of such amount that is attrib2 utable to assistance for the homeless, as

3 determined by the Secretary and the Inter4 agency Council for the Homeless.

5 ‘‘(ii) LIMITATION.—Notwithstanding

6 clause (i), the aggregate amount available

7 for companion services block grants under

8 this paragraph for a fiscal year shall not

9 exceed the total amount made available

10 pursuant to section 435 for housing assist11 ance under this title. If, for any fiscal year,

12 the amount determined under clause (i) ex13 ceeds such amount, the Secretary shall re14 duce the percentage under clause (i) for

15 such year so that the aggregate amount

16 made available for companion services

17 block grants under this paragraph from

18 the amounts for each activity referred to in

19 paragraph (4) is equal to the total amount

20 made available pursuant to section 435 for

21 housing assistance under this title.

22 ‘‘SEC. 409. SUPPORTIVE SERVICES.

23 ‘‘(a) REQUIREMENT.—To the extent practicable, each

24 project sponsor administering rental assistance provided

25 with amounts under this title or a supportive housing fa-
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•HR 3964 IH

1 cility or emergency shelter assisted with such amounts

2 shall provide supportive services for residents of the dwell3 ing units or facility or shelter assisted. The array of sup4 portive services provided may be designed by the grantee

5 or the project sponsor administering the assistance, facil6 ity, or shelter. A project sponsor administering a support7 ive housing facility shall provide supportive services for

8 other homeless persons using the facility.

9 ‘‘(b) REQUIREMENTS.—Supportive services provided

10 with grant amounts under this title shall address the spe11 cial needs of homeless persons (such as homeless persons

12 with disabilities, homeless persons with acquired

13 immunodeficiency syndrome and related diseases, home14 less persons who have chronic problems with alcohol or

15 drugs (or both), and homeless families with children) in16 tended to be served.

17 ‘‘(c) SERVICES.—Supportive services may include ac18 tivities such as—

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

20 services program for homeless families;

21 ‘‘(2) establishing and operating an employment

22 assistance program;

23 ‘‘(3) providing outpatient health services, food,

24 and case management;
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•HR 3964 IH

1 ‘‘(4) providing assistance in obtaining perma2 nent housing, employment counseling, and nutri3 tional counseling;

4 ‘‘(5) providing security arrangements necessary

5 for the protection of residents of supportive housing

6 or emergency shelters and for homeless persons

7 using supportive housing facilities;

8 ‘‘(6) providing assistance in obtaining other

9 Federal, State, and local assistance available for

10 such residents and persons (including mental health

11 benefits, employment counseling, and medical assist12 ance, but not including major medical equipment);

13 and

14 ‘‘(7) providing other appropriate services.

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

16 provided with grant amounts under this title may be pro17 vided directly by the grantee, by the project sponsor ad18 ministering the rental assistance or the facility or shelter,

19 or by contract with other public or private service provid20 ers. Such services provided in connection with a supportive

21 housing facility may be provided to homeless persons who

22 do not reside in the supportive housing, but only to the

23 extent consistent with the comprehensive housing afford24 ability strategy under section 105 of the Cranston-Gon-
35

•HR 3964 IH

1 zalez National Affordable Housing Act for the applicable

2 jurisdiction.

3 ‘‘(e) COORDINATION WITH SECRETARY OF HEALTH

4 AND HUMAN SERVICES.—

5 ‘‘(1) APPROVAL.—The Secretary shall require

6 each grantee to certify to the Secretary that, if any

7 grant amounts under this title of the grantee are to

8 be available for any eligible activity that includes the

9 provision of outpatient health services, the grantee

10 shall ensure that the Secretary of Health and

11 Human Services is consulted with respect to the pro12 posed services before such use. If, within 45 days of

13 such consultation, the Secretary of Health and

14 Human Services determines that the proposal for de15 livery of the outpatient health services does not meet

16 guidelines established under paragraph (2) for deter17 mining the appropriateness of such proposed serv18 ices, the grantee may not provide grant amounts for

19 the portion of the activity involving outpatient health

20 services unless and until the Secretary of Health and

21 Human Services determines that such services meet

22 such guidelines.

23 ‘‘(2) GUIDELINES.—The Secretary of Housing

24 and Urban Development and the Secretary of

25 Health and Human Services shall jointly establish
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•HR 3964 IH

1 guidelines for determining the appropriateness of

2 proposed outpatient health services under this sec3 tion. Such guidelines shall include any provisions

4 necessary to enable grantees to promptly make de5 terminations necessary to fund eligible activities.

6 ‘‘Subtitle B—Rental Assistance

7 Activities

8 ‘‘SEC. 411. USE OF AMOUNTS AND GENERAL REQUIRE9 MENTS.

10 ‘‘(a) USE OF AMOUNTS FOR RENTAL ASSISTANCE.—

11 ‘‘(1) AUTHORIZED USE.—A State that receives

12 a grant under section 402(b)(3) from amounts allo13 cated for use under this subtitle may use grant

14 amounts (and any supplemental amounts provided

15 under section 407) only to carry out rental assist16 ance activities under sections 412, 413, and 414

17 within the State and for supportive services required

18 under section 409 in connection with such rental as19 sistance.

20 ‘‘(2) FLEXIBILITY OF RENTAL ASSISTANCE.—

21 Subject to the requirement in subsection (b), a State

22 may use such grant amounts for activities under sec23 tions 412, 413, and 414 in such amounts as the

24 State considers appropriate.
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•HR 3964 IH

1 ‘‘(3) REQUIRED USE FOR HOUSING ACTIVI2 TIES.—Of the aggregate of any grant amounts pro3 vided to a State for a fiscal year for use under this

4 subtitle and the supplemental amounts provided for

5 such fiscal year by the State in accordance with sec6 tion 407, the State shall ensure that an amount that

7 is not less than such grant amount (less any amount

8 used pursuant to subsection (c)) is used only for

9 rental assistance payments.

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

11 A State that receives grant amounts for a fiscal year for

12 use under this subtitle may, pursuant to section 404, pro13 vide such amounts to units of general local government

14 and private nonprofit organizations for use in accordance

15 with this subtitle, except that the State shall ensure that

16 more than 50 percent of the amounts received by the State

17 for the fiscal year are used for providing rental assistance

18 through private nonprofit organizations.

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

20 in section 408(g), grant amounts provided for rental as21 sistance under this subtitle may be used by the project

22 sponsor providing such assistance for costs of administer23 ing such assistance.

24 ‘‘(d) TARGETING POPULATIONS WITH SPECIAL

25 NEEDS.—To the maximum extent practicable, a State
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•HR 3964 IH

1 grantee shall provide for use of grant amounts made avail2 able for rental assistance under this subtitle in a manner

3 that provides dwelling units for homeless persons who are

4 persons with disabilities (including persons with physical

5 and mental disabilities), homeless persons who have ac6 quired immunodeficiency syndrome or related diseases,

7 and homeless persons who have chronic problems with al8 cohol or drugs (or both).

9 ‘‘SEC. 412. TENANT-BASED RENTAL ASSISTANCE ACTIVI10 TIES.

11 ‘‘(a) IN GENERAL.—A State grantee may use grant

12 amounts allocated for use under this subtitle to provide

13 tenant-based rental assistance for homeless persons.

14 ‘‘(b) CHOICE OF DWELLING UNIT.—Rental assist15 ance under this section may be provided only on behalf

16 of homeless persons who have selected the dwelling unit

17 that such person will occupy; except that where necessary

18 to ensure the feasibility of providing supportive services,

19 the project sponsor administering the rental assistance

20 program may require the homeless person assisted to live

21 in a particular structure for not more than the first 2

22 years of assistance to such person or within a particular

23 geographic area for the full period of assistance to such

24 person.
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•HR 3964 IH

1 ‘‘SEC. 413. PROJECT-BASED RENTAL ASSISTANCE.

2 ‘‘(a) IN GENERAL.—A State grantee may use grant

3 amounts allocated for use under this subtitle to provide

4 project-based rental assistance for homeless persons.

5 ‘‘(b) ATTACHMENT OF ASSISTANCE TO STRUC6 TURE.—Rental assistance under this section may be pro7 vided only pursuant to a contract between the project

8 sponsor providing the assistance and an owner of an exist9 ing residential structure, which provides for rental assist10 ance payments to be made to the owner and for dwelling

11 units in the structure that are assisted to be occupied only

12 by homeless persons during the term of the contract.

13 ‘‘SEC. 414. SPONSOR-BASED RENTAL ASSISTANCE.

14 ‘‘(a) IN GENERAL.—A State grantee may use grant

15 amounts allocated for use under this subtitle to provide

16 sponsor-based rental assistance for homeless persons.

17 ‘‘(b) PROVISION OF HOUSING BY SPONSOR.—Rental

18 assistance under this section may be provided only pursu19 ant to a contract between the project sponsor providing

20 the assistance and a private nonprofit organization that

21 owns or leases dwelling units (which may be single-site or

22 scattered-site units). The contract shall provide for rental

23 assistance payments to be made to the nonprofit sponsor

24 and for such dwelling units to be occupied only by home25 less persons during the term of the contract.
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1 ‘‘Subtitle C—Flexible Assistance for

2 Supportive Housing and Other

3 Activities

4 ‘‘SEC. 421. ELIGIBLE ACTIVITIES.

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

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

7 following activities:

8 ‘‘(1) ACQUISITION AND REHABILITATION OF

9 SUPPORTIVE HOUSING.—For acquisition, rehabilita10 tion, or acquisition and rehabilitation, of an existing

11 structure (including a small commercial property or

12 office space) to provide supportive housing other

13 than emergency shelter or to provide supportive

14 services; the repayment of any outstanding debt

15 owed on a loan made to purchase an existing struc16 ture for use as supportive housing shall be consid17 ered to be a cost of acquisition under this paragraph

18 if the structure was not used as supportive housing,

19 or to provide supportive services, before assistance is

20 provided using grant amounts.

21 ‘‘(2) NEW CONSTRUCTION OF SUPPORTIVE

22 HOUSING.—For new construction of a structure to

23 be used as supportive housing.

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

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

4 ‘‘(4) OPERATING COSTS FOR SUPPORTIVE

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

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

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

12 the annual operating costs of such housing.

13 ‘‘(5) HOMELESSNESS PREVENTION.—For activi14 ties designed to help persons and families avoid be15 coming homeless, which shall include assistance for

16 making mortgage payments, rental payments, and

17 utility payments and any activities other than those

18 found by the Secretary to be inconsistent with the

19 purposes of this Act; except that assistance under

20 this paragraph may be provided only to very low-in21 come persons and families who have received eviction

22 (or mortgage delinquency or foreclosure) notices or

23 notices of termination of utility services and who—

24 ‘‘(A) are unable to make the required pay25 ments due to a sudden reduction in income;
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1 ‘‘(B) need such assistance to avoid the

2 eviction or termination of services; and

3 ‘‘(C) have a reasonable prospect of being

4 able to resume payments within a reasonable

5 period of time.

6 ‘‘(6) RENTAL ASSISTANCE.—For providing ten7 ant-based, project-based, or sponsor-based rental as8 sistance for homeless families in the same manner as

9 authorized under subtitle B for State grantees and

10 subject to the same limitations applicable under such

11 subtitle to State grantees.

12 ‘‘(7) EMERGENCY SHELTER.—For—

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

14 conversion of a building or buildings to be used

15 as emergency shelters;

16 ‘‘(B) covering costs of supportive services

17 in connection with an emergency shelter, if such

18 services do not supplant any services provided

19 by the local government during any part of the

20 12-month period ending on the date of the com21 mencement of the operation of the emergency

22 shelter; and

23 ‘‘(C) covering costs relating to mainte24 nance, operation, insurance, utilities, and fur25 nishings for emergency shelters.
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1 ‘‘(8) SUPPORTIVE SERVICES.—For covering

2 costs of supportive services provided to homeless

3 persons in connection with a supportive housing fa4 cility or otherwise.

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

6 assistance in carrying out the purposes of this title,

7 except that the Secretary may provide such technical

8 assistance directly to any grantee.

9 ‘‘(b) USE FOR HOUSING ACTIVITIES.—Of the aggre10 gate of any grant amounts provided to a grantee for a

11 fiscal year for use under this subtitle and the supplemental

12 amounts provided for such fiscal year by the grantee in

13 accordance with section 407, the grantee shall ensure that

14 an amount that is not less than such grant amounts (less

15 any amount used pursuant to section 408(g)) is used for

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

17 of subsection (a).

18 ‘‘(c) USE FOR EMERGENCY SHELTERS.—Of the ag19 gregate of any grant amounts provided to a grantee for

20 a fiscal year for use under this subtitle, the grantee shall

21 ensure that not more than 5 percent may be used to carry

22 out eligible activities under subsection (a)(7). The Sec23 retary may waive applicability of the limitation under the

24 preceding sentence for a grantee for a limited period of

25 time in cases of emergency, disaster, or other temporary
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1 extraordinary circumstances (as the Secretary may pro2 vide).

3 ‘‘SEC. 422. USE OF AMOUNTS THROUGH PRIVATE NON4 PROFIT PROVIDERS.

5 ‘‘In each fiscal year, each grantee of amounts for use

6 under this subtitle shall ensure that more than 50 percent

7 of the amounts received by the grantee for such fiscal year

8 is used for carrying out eligible activities under section

9 421 through project sponsors that are private nonprofit

10 organizations.

11 ‘‘SEC. 423. SUPPORTIVE HOUSING.

12 ‘‘(a) IN GENERAL.—Housing shall be considered sup13 portive housing for purposes of this subtitle if—

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

15 under section 409(a) regarding providing supportive

16 services for homeless persons;

17 ‘‘(2) the housing complies with any applicable

18 State and local housing codes and licensing require19 ments in the jurisdiction in which the housing is lo20 cated; and

21 ‘‘(3) the housing—

22 ‘‘(A) is transitional housing; or

23 ‘‘(B) is permanent supportive housing.

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

25 section, the term ‘transitional housing’ means housing, the
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1 purpose of which is to facilitate the movement of homeless

2 persons and families to permanent housing within 24

3 months or such longer period as the Secretary determines

4 necessary. Assistance may be denied for housing based on

5 a violation of this subsection only if a substantial number

6 of homeless persons or families have remained in the hous7 ing longer than such period.

8 ‘‘(c) PERMANENT SUPPORTIVE HOUSING.—For pur9 poses of this section, the term ‘permanent supportive

10 housing’ means community-based housing for homeless

11 persons that—

12 ‘‘(1) provides long-term housing and supportive

13 services for such persons; and

14 ‘‘(2) complies with any applicable State or local

15 requirements regarding the number of occupants in

16 such a facility.

17 The term includes permanent supportive housing that

18 serves only homeless persons with disabilities.

19 ‘‘(d) SINGLE ROOM OCCUPANCY DWELLINGS.—A fa20 cility may provide supportive housing or supportive serv21 ices in dwelling units that do not contain bathrooms or

22 kitchen facilities and are appropriate for use as supportive

23 housing or in facilities containing some or all such dwell24 ing units.

25 ‘‘(e) USE RESTRICTIONS.—
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1 ‘‘(1) ACQUISITION, REHABILITATION, AND NEW

2 CONSTRUCTION.—

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

4 subparagraph (B), each supportive housing fa5 cility assisted under paragraph (1) or (2) of

6 section 421(a) shall be operated as supportive

7 housing for the purpose specified in the applica8 tion for assistance with amounts under this title

9 for not less than 20 years after such facility is

10 initially placed in service pursuant to such as11 sistance.

12 ‘‘(B) EXCEPTION.—If, within such 20-year

13 period, the need for maintaining the facility as

14 supportive housing ceases to exist (as deter15 mined by the Secretary pursuant to a rec16 ommendation by the chief executive officer of

17 the appropriate unit of general local govern18 ment or project sponsor, taking into consider19 ation the comprehensive housing affordability

20 strategy of the jurisdiction), or the project

21 sponsor is unable to operate the facility as sup22 portive housing, the facility may be used as af23 fordable housing (in accordance with section

24 215 of the Cranston-Gonzalez National Afford25 able Housing Act).
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1 ‘‘(2) OTHER ASSISTANCE.—Each supportive

2 housing facility assisted under paragraph (3), (4),

3 (7), (8), or (9) of section 421(a) shall be operated

4 for the purposes specified in the application for as5 sistance with amounts under this title for the dura6 tion of the period covered by the grant.

7 ‘‘(3) CONVERSION.—Notwithstanding para8 graphs (1) and (2), if the Secretary determines that

9 a supportive housing facility is no longer needed for

10 use as supportive housing and approves the use of

11 the facility for the direct benefit of low-income per12 sons pursuant to a request for such use by the

13 project sponsor, the Secretary may authorize the

14 sponsor to convert the facility to such use.

15 ‘‘(f) REPAYMENT OF ASSISTANCE AND PREVENTION

16 OF UNDUE BENEFITS.—

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

18 paragraph (1) or (2) of section 421(a) violates the

19 requirement under subsection (e)(1)(A) of this sec20 tion during the 10-year period beginning upon place21 ment of the facility in service pursuant to such as22 sistance, the Secretary shall require the grantee to

23 repay to the Secretary 100 percent of any grant

24 amounts received for such facility under such para25 graph. If such a facility violates such requirement
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1 after such 10-year period, the Secretary shall require

2 the grantee to repay the percentage of any grants

3 amounts received for such facility that is equal to

4 100 percent minus 10 percentage points for each

5 year in excess of 10 that the facility is operated as

6 supportive housing.

7 ‘‘(2) PREVENTION OF UNDUE BENEFITS.—Ex8 cept as provided in paragraph (3), upon any sale or

9 other disposition of a facility assisted under para10 graph (1) or (2) of section 421(a) occurring before

11 the expiration of the 20-year period beginning on the

12 date that the facility is placed in service, the project

13 sponsor shall comply with such terms and conditions

14 as the Secretary may prescribe to prevent the spon15 sor from unduly benefiting from such sale or disposi16 tion.

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

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

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

20 benefit of very low-income persons or if all of the

21 proceeds are used to provide supportive housing

22 meeting the requirements of this subtitle.

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

24 of assistance made available for use under this sub25 title obligates assistance for a supportive housing fa-
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1 cility other than a facility under section 421(a)(3) or

2 housing that will eventually be owned or controlled

3 by the families and individuals served, and the

4 project sponsor fails to obtain ownership or control

5 of a suitable site for a proposed supportive housing

6 during the 12-month period beginning upon the noti7 fication of an award of grant assistance, the grantee

8 shall recapture the assistance and make such assist9 ance available under this subtitle.

10 ‘‘SEC. 424. EMERGENCY SHELTER.

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

12 emergency shelter for purposes of this subtitle if the facil13 ity is designed to provide overnight sleeping accommoda14 tions for homeless persons and complies with the require15 ments under this section. An emergency shelter may in16 clude appropriate eating and cooking accommodations.

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

18 subtitle may be used for eligible activities under section

19 421(a)(7) relating to emergency shelter only if—

20 ‘‘(1) the Secretary determines that—

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

22 meet the emergency shelter needs of the juris23 diction in which the facility is located; and
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1 ‘‘(B) the use of such amounts for such ac2 tivities will not violate the prohibition under

3 section 408(f); and

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

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

6 major rehabilitation or conversion of a building,

7 maintain the building as a shelter for homeless

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

9 period unless, within such 10-year period, the

10 need for maintaining the building as a full-time

11 shelter ceases to exist and the building is used

12 for the remainder of such period to carry out

13 other eligible activities under this subtitle;

14 ‘‘(B) in the case of assistance involving re15 habilitation (other than major rehabilitation or

16 conversion of a building), maintain the building

17 as a shelter for homeless persons and families

18 for not less than a 3-year period;

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

20 only activities described in subparagraphs (B)

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

22 shelter to homeless persons and families at the

23 original site or structure or other sites or struc24 tures serving the same general population for
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1 the period during which such assistance is pro2 vided;

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

4 quality applicable under section 408(h); and

5 ‘‘(E) assist homeless persons in obtain6 ing—

7 ‘‘(i) appropriate supportive services,

8 including permanent housing, medical and

9 mental health treatment (including infor10 mation and counseling regarding the bene11 fits and availability of child immunization),

12 counseling, supervision, and other services

13 essential for achieving independent living;

14 and

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

16 private assistance available for homeless

17 persons.

18 ‘‘Subtitle D—Reporting,

19 Definitions, and Funding

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

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

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

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

24 during such fiscal year in carrying out the activities de25 scribed in the application resulting in such grant and the
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1 relationship of such activities to the comprehensive hous2 ing affordability strategy under section 105 of the Cran3 ston-Gonzalez National Affordable Housing Act for the

4 applicable jurisdiction.

5 ‘‘(b) CONTENT.—Each report under this section for

6 a fiscal year shall—

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

8 to the grantee for such fiscal year;

9 ‘‘(2) describe the number of homeless persons

10 and families provided shelter, housing, or assistance

11 using such grant amounts;

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

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

14 Cranston-Gonzalez National Affordable Housing Act

15 in the comprehensive housing affordability strategy

16 for the applicable jurisdiction;

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

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

20 programs as a result of its experiences.

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

22 dates for submission of reports under this section, and re23 view such reports and make such recommendations as the

24 Secretary considers appropriate to carry out the purposes

25 of this title.
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1 ‘‘(d) PUBLIC AVAILABILITY.—

2 ‘‘(1) IN GENERAL.—A grantee preparing a re3 port under this section shall make the report pub4 licly available to the citizens in the jurisdiction of

5 the grantee in sufficient time to permit such citizens

6 to comment on such report prior to its submission

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

8 times as the grantee may determine. The report

9 shall include a summary of any such comments re10 ceived by the grantee regarding its program.

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

12 comply with the requirement under paragraph (1) by

13 making the report available through interactive com14 puter or telephone services or other electronic infor15 mation networks and systems appropriate for mak16 ing such information widely publicly available. The

17 Secretary shall make each final report submitted

18 under this section publicly available through such a

19 computer, telephone, or information service, net20 work, or system.

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

22 ‘‘The Secretary shall include in the annual report

23 under section 8 of the Department of Housing and Urban

24 Development Act information summarizing the activities

25 carried out under this title and setting forth the findings,
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1 conclusions, and recommendations of the Secretary as a

2 result of the activities. Such information shall be made

3 publicly available through a computer, telephone, or infor4 mation service, network, or system described in section

5 431(d).

6 ‘‘SEC. 433. DEFINITIONS.

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

8 shall apply:

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

10 an eligible grantee that submits an application under

11 section 408(a) for a grant under this title.

12 ‘‘(2) ELIGIBLE GRANTEE.—The term ‘eligible

13 grantee’ is defined in section 403.

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

15 structure or structures (or a portion of such struc16 ture or structures) that is assisted through eligible

17 activities under subtitle C with grant amounts under

18 this title (or for which the Secretary provides tech19 nical assistance under section 421(a)(9)).

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

21 applicant that receives a grant under this title.

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

23 means each of the Virgin Islands, Guam, American

24 Samoa, the Northern Mariana Islands, and any

25 other territory or possession of the United States,
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1 ‘‘(6) METROPOLITAN CITY, URBAN COUNTY,

2 AND UNIT OF GENERAL LOCAL GOVERNMENT.—The

3 terms ‘metropolitan city’, ‘urban county’, and ‘unit

4 of general local government’ have the meanings

5 given the terms in section 102 of the Housing and

6 Community Development Act of 1974.

7 ‘‘(7) NONENTITLEMENT AREA.—The term ‘non8 entitlement area’ means an area that is not a metro9 politan city or part of an urban county and does not

10 include Indian tribes or insular areas.

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

12 costs’ means expenses incurred by a grantee operat13 ing supportive housing assisted with grant amounts

14 under this title, with respect to—

15 ‘‘(A) the administration, maintenance, re16 pair, and security of such housing;

17 ‘‘(B) utilities, fuel, furnishings, and equip18 ment for such housing; and

19 ‘‘(C) the conducting of the assessment

20 under section 408(b)(2)(A).

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

22 term ‘outpatient health services’ means outpatient

23 health care, outpatient mental health services, out24 patient substance abuse services, and case manage25 ment.
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1 ‘‘(10) 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, pursuant to

6 regulations issued by the Secretary, a physical,

7 mental, or emotional impairment which (i) is

8 expected to be of long-continued and indefinite

9 duration, (ii) substantially impedes an individ10 ual’s ability to live independently, and (iii) of

11 such a nature that such ability could be im12 proved by more suitable housing conditions; or

13 ‘‘(C) has a developmental disability as de14 fined in section 102 of the Developmental Dis15 abilities Assistance and Bill of Rights Act.

16 Such term shall not exclude persons who have the

17 disease of acquired immunodeficiency syndrome or

18 any conditions arising from the etiologic agency for

19 acquired immunodeficiency syndrome.

20 ‘‘(11) PRIVATE NONPROFIT ORGANIZATION.—

21 The term ‘private nonprofit organization’ means any

22 private organization that—

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

24 laws;
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1 ‘‘(B) has no part of its net earnings inur2 ing to the benefit of any member, founder, con3 tributor, or individual;

4 ‘‘(C) complies with standards of financial

5 accountability acceptable to the Secretary; and

6 ‘‘(D) has among its purposes significant

7 activities related to the provision of—

8 ‘‘(i) decent housing that is affordable

9 to low-income and moderate-income fami10 lies; or

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

12 homeless persons or families.

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

14 sponsor’ means an entity that uses grant amounts

15 under this title to carry out a rental assistance pro16 gram under subtitle B or eligible activities under

17 subtitle C. The term includes a grantee carrying out

18 such a program or activities.

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

20 means the Secretary of Housing and Urban Develop21 ment.

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

23 the several States and the Commonwealth of Puerto

24 Rico.
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1 ‘‘(15) SUPPORTIVE HOUSING.—The term ‘sup2 portive housing’ means a facility that meets the re3 quirements of section 423.

4 ‘‘(16) SUPPORTIVE SERVICES.—The term ‘sup5 portive services’ means services under section 409.

6 ‘‘(17) VERY LOW-INCOME PERSON.—The term

7 ‘very low-income person’ has the same meaning

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

9 States Housing Act of 1937 (or any other subse10 quent provision of Federal law defining such term

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

12 public housing).

13 ‘‘SEC. 434. REGULATIONS.

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

15 30-day period beginning upon the date of the enactment

16 of the Homeless Housing Programs Consolidation and

17 Flexibility Act, the Secretary shall issue interim regula18 tions to carry out this title. The Secretary shall issue final

19 regulations to carry out this title after notice and oppor20 tunity for public comment regarding the interim regula21 tions in accordance with the procedure under section 553

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

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

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

25 of the 90-day period beginning upon the date of the enact-
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1 ment of the Homeless Housing Programs Consolidation

2 and Flexibility Act.

3 ‘‘(b) RULE OF CONSTRUCTION.—Any failure by the

4 Secretary to issue any regulations under this section shall

5 not affect the effectiveness of any provision of this title

6 pursuant to section 4(b) of the Homeless Housing Pro7 grams Consolidation and Flexibility Act.

8 ‘‘SEC. 435. AUTHORIZATION OF APPROPRIATIONS.

9 ‘‘There are authorized to be appropriated for grants

10 under this title $1,000,000,000 for each of fiscal years

11 1997, 1998, 1999, and 2000.’’.

12 (b) APPLICABILITY.—The provisions of the amend13 ment made by subsection (a) shall apply with respect to

14 fiscal year 1997 and thereafter.

15 SEC. 5. INTERAGENCY COUNCIL ON THE HOMELESS.

16 (a) FUNCTIONS.—Section 203 of the Stewart B.

17 McKinney Homeless Assistance Act (42 U.S.C. 11313) is

18 amended to read as follows:

19 ‘‘SEC. 203. FUNCTIONS.

20 ‘‘The Council shall—

21 ‘‘(1) monitor the coordination of assistance for

22 federally funded activities for the homeless to ensure

23 that such assistance is provided in coordination and

24 conjunction with assistance under title IV for hous-
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1 ing for the homeless, in accordance with section

2 408(j)(2);

3 ‘‘(2) if the Secretary of Housing and Urban

4 Development makes a determination under section

5 408(j)(5)(A) that sufficient coordination under such

6 section has not taken place, make an independent

7 determination under such section regarding whether

8 sufficient coordination has taken place;

9 ‘‘(3) advise and assist the Secretary of Housing

10 and Urban Development in establishing require11 ments for a companion services block grant program

12 under section 408(j)(5);

13 ‘‘(4) for any fiscal year in which a companion

14 services block grant program is to be carried out

15 pursuant to section 408(j)(5), advise and assist the

16 Secretary of Housing and Urban Development in

17 carrying out the program; and

18 ‘‘(5) carry out any other duties prescribed by

19 law.’’.

20 (b) AUTHORIZATION OF APPROPRIATIONS.—Section

21 208 of the Stewart B. McKinney Homeless Assistance Act

22 (42 U.S.C. 11318) is amended to read as follows:
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1 ‘‘SEC. 208. AUTHORIZATION OF APPROPRIATIONS.

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

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

4 years 1997, 1998, 1999, and 2000.’’.

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

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

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

8 ‘‘October 1, 2000’’.

9 (d) REPEAL.—Section 210 of the Stewart B. McKin10 ney Homeless Assistance Act (42 U.S.C. 11320) is hereby

11 repealed.

12 SEC. 6. REPEALS AND CONFORMING AMENDMENTS.

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

14 hereby repealed:

15 (1) INNOVATIVE HOMELESS INITIATIVES DEM16 ONSTRATION.—Section 2 of the HUD Demonstra17 tion Act of 1993 (42 U.S.C. 11301 note).

18 (2) FHA SINGLE FAMILY PROPERTY DISPOSI19 TION FOR HOMELESS USE.—Section 1407 of the

20 Housing and Community Development Act of 1992

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

22 (3) HOUSING FOR RURAL HOMELESS AND MI23 GRANT FARMWORKERS.—Subsection (k) of section

24 516 of the Housing Act of 1949 (42 U.S.C.

25 1486(k)).
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1 (b) TERMINATION OF SRO ASSISTANCE PROGRAM.—

2 Section 8(e)(2) of the United States Housing Act of 1937

3 shall not be in effect on or after the date of the enactment

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

5 of section 289 of the Cranston-Gonzalez National Afford6 able Housing Act (42 U.S.C. 12839).

7 (c) CONFORMING AMENDMENTS TO YOUTHBUILD

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

9 Affordable Housing Act is amended—

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

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

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

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

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

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

16 Assistance Act is amended by striking the items relating

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

18 to the subtitles, parts, and sections of such titles) and in19 serting the following new items:

‘‘TITLE I—GENERAL PROVISIONS

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

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

‘‘Sec. 103. Funding availability and limitations.

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

‘‘TITLE II—INTERAGENCY COUNCIL ON THE HOMELESS

‘‘Sec. 201. Establishment.

‘‘Sec. 202. Membership.

‘‘Sec. 203. Functions.

‘‘Sec. 204. Director and staff.

‘‘Sec. 205. Powers.

‘‘Sec. 206. Transfer of functions.
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‘‘Sec. 207. Definitions.

‘‘Sec. 208. Authorization of appropriations.

‘‘Sec. 209. Termination.

‘‘TITLE III—FEDERAL EMERGENCY MANAGEMENT FOOD AND

SHELTER PROGRAM

‘‘Subtitle A—Administrative Provisions

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

‘‘Sec. 302. Local boards.

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

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

‘‘Sec. 305. Annual report.

‘‘Subtitle B—Emergency Food and Shelter Grants

‘‘Sec. 311. Grants by the Director.

‘‘Sec. 312. Retention of interest earned.

‘‘Sec. 313. Purposes of grants.

‘‘Sec. 314. Limitation on certain costs.

‘‘Sec. 315. Disbursement of funds.

‘‘Sec. 316. Program guidelines.

‘‘Subtitle C—General Provisions

‘‘Sec. 321. Definitions.

‘‘Sec. 322. Authorization of appropriations.

‘‘TITLE IV—BLOCK GRANTS FOR RENTAL ASSISTANCE AND

FLEXIBLE HOMELESS ASSISTANCE GRANTS

‘‘Subtitle A—General Provisions

‘‘Sec. 401. Purpose.

‘‘Sec. 402. Grant authority.

‘‘Sec. 403. Eligible grantees.

‘‘Sec. 404. Use of grant amounts by project sponsors.

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

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

‘‘Sec. 407. Matching funds requirement.

‘‘Sec. 408. Program requirements.

‘‘Sec. 409. Supportive services.

‘‘Subtitle B—Rental Assistance Activities

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

‘‘Sec. 412. Tenant-based rental assistance activities.

‘‘Sec. 413. Project-based rental assistance.

‘‘Sec. 414. Sponsor-based rental assistance.

‘‘Subtitle C—Flexible Assistance for Supportive Housing and Other Activities

‘‘Sec. 421. Eligible activities.

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

‘‘Sec. 423. Supportive housing.

‘‘Sec. 424. Emergency shelter.
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‘‘Subtitle D—Reporting, Definitions, and Funding

‘‘Sec. 431. Performance reports by grantees.

‘‘Sec. 432. Annual report by Secretary.

‘‘Sec. 433. Definitions.

‘‘Sec. 434. Regulations.

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

1 SEC. 7. SAVINGS PROVISION.

2 Nothing in this Act may be construed to affect the

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

4 States or other person arising under or pursuant to any

5 commitment or agreement entered into before the date of

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

8 SEC. 8. TREATMENT OF PREVIOUSLY OBLIGATED

9 AMOUNTS.

10 Notwithstanding the amendment or repeal of any

11 provision of law by this Act, any amounts appropriated

12 to carry out the provisions so amended or repealed that

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

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

15 requirements and agreements entered into, under such

16 provisions as such provisions were in effect immediately

17 before such date of enactment.

Æ