II

103D CONGRESS

1ST SESSION H. R. 2517

IN THE SENATE OF THE UNITED STATES

JUNE 29 (legislative day, JUNE 22), 1993

Received; read twice and referred to the Committee on Banking, Housing, and

Urban Affairs

SEPTEMBER 23 (legislative day, SEPTEMBER 7), 1993

Committee discharged

AN ACT

To establish certain programs and demonstrations to assist

States and communities in efforts to relieve homelessness, assist local community development organizations,

and provide affordable rental housing for low-income

families, and for other purposes.

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

3 SECTION 1. SHORT TITLE.

4 This Act may be cited as the ‘‘Homeless and Commu5 nity Development Amendments Act of 1993’’.
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1 SEC. 2. INNOVATIVE HOMELESS INITIATIVES DEMONSTRA2 TION PROGRAM.

3 (a) IN GENERAL.—Subtitle E of title IV of the Stew4 art B. McKinney Homeless Assistance Act is amended by

5 adding after section 443 (42 U.S.C. 11402) the following

6 new section:

7 ‘‘SEC. 444. INNOVATIVE HOMELESS INITIATIVES DEM8 ONSTRATION PROGRAM.

9 ‘‘(a) ESTABLISHMENT OF DEMONSTRATION.—The

10 Secretary shall carry out a demonstration under this sec11 tion under which the Secretary may provide financial and

12 technical assistance—

13 ‘‘(1) to metropolitan cities, urban counties,

14 units of general local government, Indian tribes, and

15 private nonprofit organizations to demonstrate the

16 desirability and feasibility of carrying out projects

17 and activities that implement a work plan that pro18 vides for a continuum of care for homeless persons

19 under subsection (c); and

20 ‘‘(2) to States, units of general local govern21 ment, Indian tribes, and private nonprofit organiza22 tions to demonstrate the feasibility and desirability

23 of carrying out innovative programs to assist home24 less individuals under subsection (d).

25 ‘‘(b) GENERAL PROVISIONS.—
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1 ‘‘(1) DEFINITIONS.—For purposes of this sec2 tion:

3 ‘‘(A) The terms ‘State’, ‘metropolitan city’,

4 ‘urban county’, ‘unit of general local govern5 ment’, ‘Secretary’, and ‘Indian tribe’ have the

6 meanings given such terms in section 102(a) of

7 the Housing and Community Development Act

8 of 1974.

9 ‘‘(B) The term ‘private nonprofit organiza10 tion’ has the meaning given such term in sec11 tion 422 of the Stewart B. McKinney Homeless

12 Assistance Act.

13 ‘‘(C) The term ‘homeless individual’ has

14 the meaning given such term in section 103 of

15 the Stewart B. McKinney Homeless Assistance

16 Act.

17 ‘‘(2) FUNDING.—To such extent or in such

18 amounts as have been provided in appropriation

19 Acts for fiscal year 1994, $150,000,000 shall be

20 available to the Secretary to carry out the dem21 onstration under this section in such fiscal year, of

22 which—

23 ‘‘(A) $50,000,000 shall be from any

24 amounts made available to carry out the shelter
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1 plus care program under subtitle F of this title

2 in such fiscal year;

3 ‘‘(B) $40,000,000 shall be from any

4 amounts made available to carry out the sup5 portive housing program under subtitle C of

6 this title in such fiscal year;

7 ‘‘(C) $25,000,000 shall be from any

8 amounts made available to carry out the

9 HOME Investment Partnerships Act in such

10 fiscal year;

11 ‘‘(D) $25,000,000 shall be from any

12 amounts made available to carry out the com13 munity development block grants program

14 under title I of the Housing and Community

15 Development Act of 1974 in such fiscal year;

16 and

17 ‘‘(E) $10,000,000 shall be from any

18 amounts made available under section 402 of

19 the Cranston-Gonzalez National Affordable

20 Housing Act to carry out the HOPE home-own21 ership programs in such fiscal year.

22 Of any amounts made available to carry out the

23 demonstration under this section, 50 percent shall

24 be available for assistance under subsection (c) and
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1 50 percent shall be available for assistance under

2 subsection (d).

3 ‘‘(c) HOMELESS CRISIS FUNDING.—

4 ‘‘(1) DESIGNATION.—The Secretary shall des5 ignate such metropolitan cities, urban counties, units

6 of general local government (including units in rural

7 areas), and Indian tribes as areas eligible for assist8 ance under this subsection, as the Secretary may de9 termine. The Secretary shall establish criteria for

10 making such designations, which shall at a minimum

11 include—

12 ‘‘(A) the extent of unmet need of homeless

13 individuals in the jurisdiction, including those

14 who are wholly without adequate shelter of any

15 kind;

16 ‘‘(B) the gap between the jurisdiction’s ex17 isting system of assisting homeless persons and

18 the continuum of care model described in para19 graph (2);

20 ‘‘(C) the degree of cooperation between the

21 jurisdiction and nonprofit homeless service pro22 viders;

23 ‘‘(D) the degree to which private nonprofit

24 and for-profit entities express willingness to
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1 make financial and other commitments to the

2 jurisdiction’s homeless assistance efforts; and

3 ‘‘(E) national geographic diversity in the

4 designation of jurisdictions.

5 After selecting areas for designation under this

6 paragraph but before designating such areas, the

7 Secretary shall consult with the Committee on Bank8 ing, Finance and Urban Affairs of the House of

9 Representatives and the Committee on Banking,

10 Housing, and Urban Affairs of the Senate regarding

11 such designations.

12 ‘‘(2) WORK PLAN.—To receive assistance under

13 this subsection within a designated jurisdiction, the

14 jurisdiction or a private nonprofit organization shall

15 submit to the Secretary a work plan that shall, at

16 a minimum—

17 ‘‘(A) describe existing conditions for home18 less persons and families throughout the juris19 diction;

20 ‘‘(B) set forth a realistic and feasible strat21 egy that contains specific projects and activities

22 resulting in a continuum of care for the juris23 diction’s homeless persons and targets, goals,

24 and strategies for implementation and comple25 tion of such projects and activities;
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1 ‘‘(C) be prepared with appropriate coopera2 tion from affected governments and government

3 agencies, private nonprofit organizations, and

4 contributing for-profit entities;

5 ‘‘(D) specify those projects and activities

6 for which the jurisdiction requests funding from

7 the Secretary under this subsection and the

8 amounts thereby requested; and

9 ‘‘(E) specify courses, amounts, and time10 tables for the financing of other projects and

11 activities.

12 ‘‘(3) DESIGNATION.—The designation referred

13 to in paragraph (1) and assistance provided under

14 this subsection shall be made on a noncompetitive

15 basis.

16 ‘‘(d) INNOVATIVE PROJECT FUNDING.—

17 ‘‘(1) AUTHORITY.—The Secretary is authorized

18 to provide assistance under this subsection to States,

19 units of general local government (including units in

20 rural areas), Indian tribes, and private nonprofit or21 ganizations for assistance for innovative programs to

22 assist homeless individuals.

23 ‘‘(2) APPLICATIONS.—Applications for assist24 ance under this subsection shall be in such form,

25 and shall include such information, as the Secretary
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1 shall determine. Each application shall contain, at a

2 minimum—

3 ‘‘(A) a description of the existing condi4 tions for homeless individuals in the jurisdic5 tion;

6 ‘‘(B) an explanation of how the proposed

7 project will further the efforts of the jurisdic8 tion to meet the housing and supportive services

9 needs of homeless individuals through an inte10 grated and coordinated system;

11 ‘‘(C) evidence that the application has been

12 prepared in coordination with appropriate gov13 ernmental entities, private nonprofit organiza14 tions, and for-profit entities; and

15 ‘‘(D) a description of the projects and ac16 tivities for which the applicant is requesting

17 funding under this subsection and the amounts

18 requested.

19 ‘‘(3) CRITERIA.—The Secretary shall establish

20 selection criteria for awarding assistance under this

21 subsection, which shall include, at a minimum—

22 ‘‘(A) the extent of the commitment of the

23 applicant to alleviating poverty and homeless24 ness;
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1 ‘‘(B) the extent of the applicant’s continu2 ing capacity to effectively provide assistance to

3 homeless individuals;

4 ‘‘(C) the extent to which the project or ac5 tivity is innovative and may be replicable or

6 serve as a model for implementation in other

7 jurisdictions; and

8 ‘‘(D) diversity by geography and commu9 nity type.

10 ‘‘(4) APPROACH.—Assistance under this sub11 section may be used to provide innovative ap12 proaches for, or alternative means of, meeting the

13 immediate long-term needs of homeless individuals

14 by assisting—

15 ‘‘(A) the purchase, lease, renovation, oper16 ation, or conversion of facilities to assist the

17 homeless, which facilities shall be safe and sani18 tary and, when appropriate, meet all applicable

19 State and local housing and building codes and

20 licensing requirements;

21 ‘‘(B) the provision of supportive services

22 for the homeless; and

23 ‘‘(C) such other activities as the Secretary

24 may prescribe.
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1 ‘‘(5) REQUIREMENTS.—The Secretary shall es2 tablish requirements for assistance under this

3 subsection, which may include limitations on

4 administrative expenses, terms of renewal funding

5 for short-term lease projects, and requirements for

6 repayment of assistance under this subsection when

7 the project ceases to be used to assist the homeless

8 in accordance with the provision of this subsection.

9 ‘‘(e) REPORTS.—The Secretary shall submit an an10 nual report to the Congress for each fiscal year in which

11 the Secretary provides assistance under the demonstration

12 under this section. The reports shall describe the activities

13 carried out with assistance under the demonstration and

14 set forth any findings and recommendations of the Sec15 retary as a result of the demonstration. Each such report

16 shall be submitted not later than the expiration of the 3-

17 month period beginning upon the conclusion of the fiscal

18 year for which the report is made.’’.

19 (b) CLERICAL AMENDMENT.—The table of contents

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

21 Assistance Act is amended by inserting after the item re22 lating to section 443 the following new item:

‘‘Sec. 444. Innovative Homeless Initiatives Demonstration Program.’’.

23 SEC. 3. MOVING TO OPPORTUNITY FOR FAIR HOUSING.

24 Section 152(e) of the Housing and Community Devel25 opment Act of 1992 (42 U.S.C. 1437f note) is amended—
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1 (1) in the first sentence, by striking

2 ‘‘$52,100,000’’ and inserting ‘‘$165,000,000’’; and

3 (2) by adding at the end the following new sen4 tence: ‘‘No amounts appropriated for fiscal year

5 1994 to carry out the demonstration under this sec6 tion may be obligated to any public housing agency

7 or expended before the Secretary submits to the

8 Congress a report describing how amounts made

9 available for the demonstration in fiscal year 1993

10 were allocated and expended and containing the in11 formation required in interim reports under sub12 section (d)(1), to the extent such information is

13 available to the Secretary.’’.

14 SEC. 4. ASSISTANCE FOR LOCAL COMMUNITY DEVELOP15 MENT ORGANIZATIONS.

16 (a) AUTHORITY.—The Secretary of Housing and

17 Urban Development may provide assistance under this

18 section to the National Community Development Initiative

19 for making grants under this section to community devel20 opment support organizations for such organizations to

21 assist local community development organizations in in22 creasing their technical and administrative capacities and

23 carrying out community development projects and activi24 ties and developing affordable housing, and to provide
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1 technical and predevelopment assistance relating to such

2 community development and housing projects.

3 (b) ASSISTANCE TO LOCAL COMMUNITY DEVELOP4 MENT ORGANIZATIONS.—A community development sup5 port organization that receives a grant under this section

6 shall use any such amounts to carry out the following ac7 tivities and provide the following assistance:

8 (1) CAPACITY BUILDING.—Providing training,

9 education, support, and advice to local community

10 development organizations to enhance the technical

11 and administrative capabilities of such organizations

12 to conduct activities under paragraphs (2) and (3)

13 and providing amounts for such organizations to ob14 tain such capacity building assistance, which may in15 clude assistance to the staff, management, directors,

16 and members of such organizations regarding legal,

17 financial, construction, engineering, property man18 agement, and other matters.

19 (2) COMMUNITY DEVELOPMENT AND HOUSING

20 ACTIVITIES.—Providing amounts (through loans and

21 grants) and other assistance for local community de22 velopment organizations to carry out community de23 velopment activities that benefit low-income families

24 and activities to develop and support affordable

25 housing, which may include providing financing for
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1 rehabilitating, constructing, acquiring, and maintain2 ing affordable housing.

3 (3) PROJECT-RELATED PREDEVELOPMENT AS4 SISTANCE.—Providing technical assistance and

5 amounts to local community development organiza6 tions for predevelopment activities relating to spe7 cific projects under paragraph (2), which may in8 clude conducting project feasibility analyses, obtain9 ing project consultants, preparing preliminary fi10 nancing applications, obtaining legal, architectural,

11 and engineering assistance, site acquisition, and title

12 clearance.

13 (4) OTHER ACTIVITIES.—Other activities, as

14 determined by the National Community Develop15 ment Initiative in consultation with the Secretary.

16 (c) PROHIBITION OF USE OF GRANT AMOUNTS FOR

17 SUPPORT ORGANIZATION ADMINISTRATIVE COSTS.—No

18 amounts from a grant under this section may be used for

19 administrative costs of a community development support

20 organization.

21 (d) REQUIREMENTS.—The National Community De22 velopment Initiative may make grants under this section

23 only to community development support organizations

24 that—
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1 (1) submit to the Secretary an application that

2 contains—

3 (A) a request for a grant under this sec4 tion that specifies the amount of the assistance

5 requested;

6 (B) a description of the method by which

7 the community development support organiza8 tion will select local community development or9 ganizations to assist;

10 (C) specification of the intended bene11 ficiaries of assistance provided by the commu12 nity development support organization;

13 (D) measurable goals by which to deter14 mine the effectiveness of the use of the grant

15 amounts; and

16 (E) such other information as the Sec17 retary may require;

18 (2) are selected by the Secretary under sub19 section (f); and

20 (3) agree to comply with the provisions of this

21 section and provide assistance in the manner de22 scribed in the application of the organization ap23 proved by the Secretary.

24 (e) MATCHING REQUIREMENT.—
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1 (1) IN GENERAL.—The Secretary may not pro2 vide any assistance to the National Community De3 velopment Initiative from amounts made available

4 for this section unless the Secretary determines that

5 an amount equal to 3 times the amount to be pro6 vided by the Secretary has been made available to

7 the National Community Development Initiative

8 from private foundations and corporations for use

9 with grant amounts for the purposes under sub10 section (b).

11 (2) UNUSED AMOUNTS.—Any amounts appro12 priated to carry out this section for a fiscal year

13 which may not be used because matching amounts

14 pursuant to paragraph (1) have not been made

15 available in the year, shall be available or committed

16 on October 1 of the next fiscal year for the purposes

17 under paragraph (1) or (2) of section 205 of the

18 Cranston-Gonzalez National Affordable Housing

19 Act, in the discretion of the Secretary.

20 (f) SELECTION.—

21 (1) IN GENERAL.—The Secretary shall select

22 community development support organizations for

23 grants under this section from among organizations

24 submitting applications under subsection (d)(1).
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1 (2) CRITERIA.—The Secretary shall make selec2 tions under paragraph (1) based on the information

3 contained in the applications, the capacity and expe4 rience of such organizations to provide training, sup5 port, advice, and assistance to local community de6 velopment organizations, and such other criteria as

7 the Secretary shall establish.

8 (3) CONSULTATION.—In establishing the con9 tent of the criteria under paragraph (2), the relative

10 weight to be given to the various criteria, and the

11 process under this subsection for selection of the ap12 plications for grants under this section, the Sec13 retary shall consult with the National Community

14 Development Initiative and the members of such Ini15 tiative.

16 (g) REPORTS.—

17 (1) GAO.—Not later than 3 years after the

18 date of the enactment of this section, the Comptrol19 ler General of the United States shall submit a re20 port to the Congress describing the effectiveness of

21 the use, by community development support organi22 zations and local community development organiza23 tions, of amounts from grants under this section.

24 (2) SECRETARY.—Not later than 15 months

25 after the date that amounts made available pursuant
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1 to subsection (i)(1) are first disbursed to the Na2 tional Community Development Initiative, and annu3 ally thereafter for 3 years, the Secretary shall sub4 mit a report to the Congress describing the activities

5 carried out by community development support orga6 nizations and local community development organi7 zations with amounts provided under this section

8 and matching amounts, the effectiveness of such ac9 tivities, and any other findings of the Secretary as

10 a result of assistance provided under this section.

11 (h) DEFINITIONS.—For purposes of this section:

12 (1) DISTRESSED AREA.—The term ‘‘distressed

13 area’’ means an area in which the percentage of the

14 families residing in the area that are low-income

15 families is substantially higher than such percentage

16 for the region in which the area is located, or that

17 possesses other characteristics indicating a need for

18 housing or community development assistance, as

19 determined by the community development support

20 organizations.

21 (2) GRANT.—The term ‘‘grant under this sec22 tion’’ means a grant with assistance provided under

23 subsection (a) by the Secretary from amounts appro24 priated pursuant to subsection (i)(1). Such term

25 does not include assistance provided with any
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1 amounts made available by private foundations and

2 corporations pursuant to the requirement under sub3 section (e).

4 (3) LOCAL COMMUNITY DEVELOPMENT ORGANI5 ZATIONS.—The term ‘‘local community development

6 organization’’ means a nonprofit organization—

7 (A) that has among its principal purposes

8 the provision of affordable housing in a dis9 tressed area or conducting community develop10 ment activities that primarily benefit low-in11 come families in a distressed area; and

12 (B) whose governing board is comprised of

13 business, civic, and community leaders and resi14 dents of the distressed area in which the orga15 nization carries out its activities.

16 The term includes community development corpora17 tions and community housing development organiza18 tions (as such term is defined in section 104 of the

19 Cranston-Gonzalez National Affordable Housing

20 Act).

21 (4) COMMUNITY DEVELOPMENT SUPPORT OR22 GANIZATION.—The term ‘‘community development

23 support organization’’ means a nonprofit organiza24 tion funded by the National Community Develop25 ment Initiative that—
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1 (A) has among its principal purposes pro2 viding assistance throughout the United States

3 to local community development organizations

4 to facilitate such local organizations’ activities

5 to develop or maintain affordable housing or re6 vitalize distressed communities;

7 (B) has demonstrated experience and abil8 ity in providing a range of assistance to local

9 community development organizations, which

10 may include financing, technical assistance,

11 construction activities, property management,

12 and training; and

13 (C) meets standards of fiscal responsibility

14 established by the Secretary.

15 (i) FUNDING.—

16 (1) IN GENERAL.—Amounts made available for

17 carrying out the HOME Investment Partnerships

18 Act for fiscal year 1994 shall be made available for

19 use under this section to such extent or in such

20 amounts as are provided in appropriation Acts, ex21 cept that the amount so made available for use

22 under this section may not exceed $25,000,000.

23 (2) COMMUNITY HOUSING PARTNERSHIP AC24 TIVITIES.—Section 205(1) of the Cranston-Gonzalez

25 National Affordable Housing Act (42 U.S.C.
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1 12724(1)) is amended by striking ‘‘$14,000,000’’

2 the second place it appears and inserting

3 ‘‘$25,000,000’’.

Passed the House of Representatives June 29, (legislative day, June 28), 1993.

Attest: DONNALD K. ANDERSON,

Clerk.

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