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(3) by redesignating sections 413 through 416 
(42 U.S.C. 11373–6) as sections 414 through 417, 
respectively; and 
(4) by striking section 412 (42 U.S.C. 11372) 
and inserting the following: 
‘‘SEC. 412. GRANT ASSISTANCE. 
‘‘The Secretary shall make grants to States and local 
governments (and to private nonprofit organizations pro-
viding assistance to persons experiencing homelessness or 
at risk of homelessness, in the case of grants made with 
reallocated amounts) for the purpose of carrying out ac-
tivities described in section 415. 
‘‘SEC. 413. AMOUNT AND ALLOCATION OF ASSISTANCE. 
‘‘(a) IN GENERAL.—Of the amount made available 
to carry out this subtitle and subtitle C for a fiscal year, 
the Secretary shall allocate nationally 20 percent of such 
amount for activities described in section 415. The Sec-
retary shall be required to certify that such allocation will 
not adversely affect the renewal of existing projects under 
this subtitle and subtitle C for those individuals or families 
who are homeless. 
‘‘(b) ALLOCATION.—An entity that receives a grant 
under section 412, and serves an area that includes 1 or 
more geographic areas (or portions of such areas) served 
by collaborative applicants that submit applications under 
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subtitle C, shall allocate the funds made available through 
the grant to carry out activities described in section 415, 
in consultation with the collaborative applicants.’’; and 
(5) in section 414(b) (42 U.S.C. 11373(b)), as 
so redesignated by paragraph (3) of this section, by 
striking ‘‘amounts appropriated’’ and all that follows 
through ‘‘for any’’ and inserting ‘‘amounts appro-
priated under section 408 and made available to 
carry out this subtitle for any’’. 
SEC. 202. ELIGIBLE ACTIVITIES. 
The McKinney-Vento Homeless Assistance Act is 
amended by striking section 415 (42 U.S.C. 11374), as 
so redesignated by section 201(3) of this Act, and insert-
ing the following new section: 
‘‘SEC. 415. ELIGIBLE ACTIVITIES. 
‘‘(a) IN GENERAL.—Assistance provided under sec-
tion 412 may be used for the following activities: 
‘‘(1) The renovation, major rehabilitation, or 
conversion of buildings to be used as emergency 
shelters. 
‘‘(2) The provision of essential services related 
to emergency shelter or street outreach, including 
services concerned with employment, health, edu-
cation, family support services for homeless youth, 
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substance abuse services, victim services, or mental 
health services, if— 
‘‘(A) such essential services have not been 
provided by the local government during any 
part of the immediately preceding 12-month pe-
riod or the Secretary determines that the local 
government is in a severe financial deficit; or 
‘‘(B) the use of assistance under this sub-
title would complement the provision of those 
essential services. 
‘‘(3) Maintenance, operation, insurance, provi-
sion of utilities, and provision of furnishings related 
to emergency shelter. 
‘‘(4) Provision of rental assistance to provide 
short-term or medium-term housing to homeless in-
dividuals or families or individuals or families at risk 
of homelessness. Such rental assistance may include 
tenant-based or project-based rental assistance. 
‘‘(5) Housing relocation or stabilization services 
for homeless individuals or families or individuals or 
families at risk of homelessness, including housing 
search, mediation or outreach to property owners, 
legal services, credit repair, providing security or 
utility deposits, utility payments, rental assistance 
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for a final month at a location, assistance with mov-
ing costs, or other activities that are effective at— 
‘‘(A) stabilizing individuals and families in 
their current housing; or 
‘‘(B) quickly moving such individuals and 
families to other permanent housing. 
‘‘(b) MAXIMUM
ALLOCATION
FOR
EMERGENCY 
SHELTER ACTIVITIES.—A grantee of assistance provided 
under section 412 for any fiscal year may not use an 
amount of such assistance for activities described in para-
graphs (1) through (3) of subsection (a) that exceeds the 
greater of— 
‘‘(1) 60 percent of the aggregate amount of 
such assistance provided for the grantee for such fis-
cal year; or 
‘‘(2) the amount expended by such grantee for 
such activities during fiscal year most recently com-
pleted before the effective date under section 503 of 
the Homeless Emergency Assistance and Rapid 
Transition to Housing Act of 2008.’’. 
SEC. 203. PARTICIPATION IN HOMELESS MANAGEMENT IN-
FORMATION SYSTEM. 
Section 416 of the McKinney-Vento Homeless Assist-
ance Act (42 U.S.C. 11375), as so redesignated by section 
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201(3) of this Act, is amended by adding at the end the 
following new subsection: 
‘‘(f) PARTICIPATION IN HMIS.—The Secretary shall 
ensure that recipients of funds under this subtitle ensure 
the consistent participation by emergency shelters and 
homelessness prevention and rehousing programs in any 
applicable community-wide homeless management infor-
mation system.’’. 
TITLE III—CONTINUUM OF CARE 
PROGRAM 
SEC. 301. CONTINUUM OF CARE. 
The McKinney-Vento Homeless Assistance Act is 
amended— 
(1) by striking the subtitle heading for subtitle 
C of title IV (42 U.S.C. 11381 et seq.) and inserting 
the following: 
‘‘Subtitle C—Continuum of Care 
Program’’; and 
(2) by striking sections 421 and 422 (42 U.S.C. 
11381 and 11382) and inserting the following new 
sections: 
‘‘SEC. 421. PURPOSES. 
‘‘The purposes of this subtitle are— 
‘‘(1) to promote community-wide commitment 
to the goal of ending homelessness; 
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‘‘(2) to provide funding for efforts by nonprofit 
providers and State and local governments to quickly 
rehouse homeless individuals and families while 
minimizing the trauma and dislocation caused to in-
dividuals, families, and communities by homeless-
ness; 
‘‘(3) to promote access to, and effective utiliza-
tion of, mainstream programs described in section 
203(a)(7) and programs funded with State or local 
resources; and 
‘‘(4) to optimize self-sufficiency among individ-
uals and families experiencing homelessness. 
‘‘SEC. 422. CONTINUUM OF CARE APPLICATIONS AND 
GRANTS. 
‘‘(a) PROJECTS.—The Secretary shall award grants, 
on a competitive basis, and using the selection criteria de-
scribed in section 427, to carry out eligible activities under 
this subtitle for projects that meet the program require-
ments under section 426, either by directly awarding 
funds to project sponsors or by awarding funds to unified 
funding agencies. 
‘‘(b) NOTIFICATION OF FUNDING AVAILABILITY.— 
The Secretary shall release a notification of funding avail-
ability for grants awarded under this subtitle for a fiscal 
year not later than 3 months after the date of the enact-
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ment of the appropriate Act making appropriations for the 
Department of Housing and Urban Development for such 
fiscal year. 
‘‘(c) APPLICATIONS.— 
‘‘(1) SUBMISSION TO THE SECRETARY.—To be 
eligible to receive a grant under subsection (a), a 
project sponsor or unified funding agency in a geo-
graphic area shall submit an application to the Sec-
retary at such time and in such manner as the Sec-
retary may require, and containing such information 
as the Secretary determines necessary— 
‘‘(A) to determine compliance with the pro-
gram requirements and selection criteria under 
this subtitle; and 
‘‘(B) to establish priorities for funding 
projects in the geographic area. 
‘‘(2) ANNOUNCEMENT OF AWARDS.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the Secretary shall an-
nounce, within 5 months after the last date for 
the submission of applications described in this 
subsection for a fiscal year, the grants condi-
tionally awarded under subsection (a) for that 
fiscal year. 
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‘‘(B) TRANSITION.—For a period of up to 
2 years beginning after the effective date under 
section 503 of the Homeless Emergency Assist-
ance and Rapid Transition to Housing Act of 
2008, the Secretary shall announce, within 6 
months after the last date for the submission of 
applications described in this subsection for a 
fiscal year, the grants conditionally awarded 
under subsection (a) for that fiscal year. 
‘‘(d) OBLIGATION, DISTRIBUTION, AND UTILIZATION 
OF FUNDS.— 
‘‘(1) REQUIREMENTS FOR OBLIGATION.— 
‘‘(A) IN
GENERAL.—Not later than 9 
months after the announcement referred to in 
subsection (c)(2), each recipient or project 
sponsor shall meet all requirements for the obli-
gation of those funds, including site control, 
matching funds, and environmental review re-
quirements, except as provided in subpara-
graphs (B) and (C). 
‘‘(B) ACQUISITION, REHABILITATION, OR 
CONSTRUCTION.—Not later than 24 months 
after the announcement referred to in sub-
section (c)(2), each recipient or project sponsor 
seeking the obligation of funds for acquisition 
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of housing, rehabilitation of housing, or con-
struction of new housing for a grant announced 
under subsection (c)(2) shall meet all require-
ments for the obligation of those funds, includ-
ing site control, matching funds, and environ-
mental review requirements. 
‘‘(C) EXTENSIONS.—At the discretion of 
the Secretary, and in compelling circumstances, 
the Secretary may extend the date by which a 
recipient or project sponsor shall meet the re-
quirements described in subparagraphs (A) and 
(B) if the Secretary determines that compliance 
with the requirements was delayed due to fac-
tors beyond the reasonable control of the recipi-
ent or project sponsor. Such factors may in-
clude difficulties in obtaining site control for a 
proposed project, completing the process of ob-
taining secure financing for the project, obtain-
ing approvals from State or local governments, 
or completing the technical submission require-
ments for the project. 
‘‘(2) OBLIGATION.—Not later than 45 days 
after a recipient or project sponsor meets the re-
quirements described in paragraph (1), the Sec-
retary shall obligate the funds for the grant involved. 
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‘‘(3) DISTRIBUTION.—A recipient that receives 
funds through such a grant— 
‘‘(A) shall distribute the funds to project 
sponsors (in advance of expenditures by the 
project sponsors); and 
‘‘(B) shall distribute the appropriate por-
tion of the funds to a project sponsor not later 
than 45 days after receiving a request for such 
distribution from the project sponsor. 
‘‘(4) EXPENDITURE OF FUNDS.—The Secretary 
may establish a date by which funds made available 
through a grant announced under subsection (c)(2) 
for a homeless assistance project shall be entirely ex-
pended by the recipient or project sponsors involved. 
The date established under this paragraph shall not 
occur before the expiration of the 24-month period 
beginning on the date that funds are obligated for 
activities described under paragraphs (1) or (2) of 
section 423(a). The Secretary shall recapture the 
funds not expended by such date. The Secretary 
shall reallocate the funds for another homeless as-
sistance and prevention project that meets the re-
quirements of this subtitle to be carried out, if pos-
sible and appropriate, in the same geographic area 
as the area served through the original grant. 
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‘‘(e) RENEWAL FUNDING FOR UNSUCCESSFUL AP-
PLICANTS.—The Secretary may renew funding for a spe-
cific project previously funded under this subtitle that the 
Secretary determines meets the purposes of this subtitle, 
and was included as part of a total application that met 
the criteria of subsection (c), even if the application was 
not selected to receive grant assistance. The Secretary 
may renew the funding for a period of not more than 1 
year, and under such conditions as the Secretary deter-
mines to be appropriate. 
‘‘(f) CONSIDERATIONS IN DETERMINING RENEWAL 
FUNDING.—When providing renewal funding for leasing, 
operating costs, or rental assistance for permanent hous-
ing, the Secretary shall make adjustments proportional to 
increases in the fair market rents in the geographic area. 
‘‘(g) MORE THAN ONE APPLICATION FOR A GEO-
GRAPHIC AREA.—If more than one collaborative applicant 
applies for funds for a geographic area, the Secretary shall 
award funds to the collaborative applicant with the highest 
score based on the selection criteria set forth in section 
427. 
‘‘(h) APPEALS.— 
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish a timely appeal procedure for grant amounts 
awarded or denied under this subtitle pursuant to a 
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collaborative application or solo application for fund-
ing. 
‘‘(2) PROCESS.—The Secretary shall ensure 
that the procedure permits appeals submitted by en-
tities carrying out homeless housing and services 
projects (including emergency shelters and homeless-
ness prevention programs), and all other applicants 
under this subtitle. 
‘‘(i) SOLO APPLICANTS.—A solo applicant may sub-
mit an application to the Secretary for a grant under sub-
section (a) and be awarded such grant on the same basis 
as such grants are awarded to other applicants based on 
the criteria described in section 427, but only if the Sec-
retary determines that the solo applicant has attempted 
to participate in the continuum of care process but was 
not permitted to participate in a reasonable manner. The 
Secretary may award such grants directly to such appli-
cants in a manner determined to be appropriate by the 
Secretary. 
‘‘(j) FLEXIBILITY TO SERVE PERSONS DEFINED AS 
HOMELESS UNDER OTHER FEDERAL LAWS.— 
‘‘(1) IN
GENERAL.—A collaborative applicant 
may use not more than 10 percent of funds awarded 
under this subtitle (continuum of care funding) for 
any of the types of eligible activities specified in 
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paragraphs (1) through (7) of section 423(a) to 
serve families with children and youth defined as 
homeless under other Federal statutes, or homeless 
families with children and youth defined as homeless 
under section 103(a)(6), but only if the applicant 
demonstrates that the use of such funds is of an 
equal or greater priority or is equally or more cost 
effective in meeting the overall goals and objectives 
of the plan submitted under section 427(b)(1)(B), 
especially with respect to children and unaccom-
panied youth. 
‘‘(2) LIMITATIONS.—The 10 percent limitation 
under paragraph (1) shall not apply to collaborative 
applicants in which the rate of homelessness, as cal-
culated in the most recent point in time count, is 
less than one-tenth of 1 percent of total population. 
‘‘(3) TREATMENT OF CERTAIN POPULATIONS.— 
‘‘(A) IN GENERAL.—Notwithstanding sec-
tion 103(a) and subject to subparagraph (B), 
funds awarded under this subtitle may be used 
for eligible activities to serve unaccompanied 
youth and homeless families and children de-
fined as homeless under section 103(a)(6) only 
pursuant to paragraph (1) of this subsection 
and such families and children shall not other-
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wise be considered as homeless for purposes of 
this subtitle. 
‘‘(B) AT RISK OF HOMELESSNESS.—Sub-
paragraph (A) may not be construed to prevent 
any unaccompanied youth and homeless families 
and children defined as homeless under section 
103(a)(6) from qualifying for, and being treat-
ed for purposes of this subtitle as, at risk of 
homelessness 
or 
from 
eligibility 
for 
any 
projects, activities, or services carried out using 
amounts provided under this subtitle for which 
individuals or families that are at risk of home-
lessness are eligible.’’. 
SEC. 302. ELIGIBLE ACTIVITIES. 
The McKinney-Vento Homeless Assistance Act is 
amended by striking section 423 (42 U.S.C. 11383) and 
inserting the following new section: 
‘‘SEC. 423. ELIGIBLE ACTIVITIES. 
‘‘(a) IN GENERAL.—Grants awarded under section 
422 to qualified applicants shall be used to carry out 
projects that serve homeless individuals or families that 
consist of one or more of the following eligible activities: 
‘‘(1) Construction of new housing units to pro-
vide transitional or permanent housing. 
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‘‘(2) Acquisition or rehabilitation of a structure 
to provide transitional or permanent housing, other 
than emergency shelter, or to provide supportive 
services. 
‘‘(3) Leasing of property, or portions of prop-
erty, not owned by the recipient or project sponsor 
involved, for use in providing transitional or perma-
nent housing, or providing supportive services. 
‘‘(4) Provision of rental assistance to provide 
transitional or permanent housing to eligible per-
sons. The rental assistance may include tenant- 
based, project-based, or sponsor-based rental assist-
ance. Project-based rental assistance, sponsor-based 
rental assistance, and operating cost assistance con-
tracts carried out by project sponsors receiving 
grants under this section may, at the discretion of 
the applicant and the project sponsor, have an initial 
term of 15 years, with assistance for the first 5 
years paid with funds authorized for appropriation 
under this Act, and assistance for the remainder of 
the term treated as a renewal of an expiring con-
tract as provided in section 429. Project-based rent-
al assistance may include rental assistance to pre-
serve existing permanent supportive housing for 
homeless individuals and families. 
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‘‘(5) Payment of operating costs for housing 
units assisted under this subtitle or for the preserva-
tion of housing that will serve homeless individuals 
and families and for which another form of assist-
ance is expiring or otherwise no longer available. 
‘‘(6) Supportive services for individuals and 
families who are currently homeless, who have been 
homeless in the prior 6 months but are currently re-
siding in permanent housing, or who were previously 
homeless and are currently residing in permanent 
supportive housing. 
‘‘(7) Provision of rehousing services, including 
housing search, mediation or outreach to property 
owners, credit repair, providing security or utility 
deposits, rental assistance for a final month at a lo-
cation, assistance with moving costs, or other activi-
ties that— 
‘‘(A) are effective at moving homeless indi-
viduals and families immediately into housing; 
or 
‘‘(B) may benefit individuals and families 
who in the prior 6 months have been homeless, 
but are currently residing in permanent hous-
ing. 
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use not more than 10 percent of the total funds 
made available to that project sponsor through this 
subtitle for such costs. 
‘‘(b) MINIMUM GRANT TERMS.—The Secretary may 
impose minimum grant terms of up to 5 years for new 
projects providing permanent housing. 
‘‘(c) USE RESTRICTIONS.— 
‘‘(1) ACQUISITION, REHABILITATION, AND NEW 
CONSTRUCTION.—A project that consists of activities 
described in paragraph (1) or (2) of subsection (a) 
shall be operated for the purpose specified in the ap-
plication submitted for the project under section 422 
for not less than 15 years. 
‘‘(2) OTHER ACTIVITIES.—A project that con-
sists of activities described in any of paragraphs (3) 
through (12) of subsection (a) shall be operated for 
the purpose specified in the application submitted 
for the project under section 422 for the duration of 
the grant period involved. 
‘‘(3) CONVERSION.—If the recipient or project 
sponsor carrying out a project that provides transi-
tional or permanent housing submits a request to 
the Secretary to carry out instead a project for the 
direct benefit of low-income persons, and the Sec-
retary determines that the initial project is no longer 
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needed to provide transitional or permanent housing, 
the Secretary may approve the project described in 
the request and authorize the recipient or project 
sponsor to carry out that project. 
‘‘(d) REPAYMENT OF ASSISTANCE AND PREVENTION 
OF UNDUE BENEFITS.— 
‘‘(1) REPAYMENT.—If a recipient or project 
sponsor receives assistance under section 422 to 
carry out a project that consists of activities de-
scribed in paragraph (1) or (2) of subsection (a) and 
the project ceases to provide transitional or perma-
nent housing— 
‘‘(A) earlier than 10 years after operation 
of the project begins, the Secretary shall re-
quire the recipient or project sponsor to repay 
100 percent of the assistance; or 
‘‘(B) not earlier than 10 years, but earlier 
than 15 years, after operation of the project be-
gins, the Secretary shall require the recipient or 
project sponsor to repay 20 percent of the as-
sistance for each of the years in the 15-year pe-
riod for which the project fails to provide that 
housing. 
‘‘(2) PREVENTION OF UNDUE BENEFITS.—Ex-
cept as provided in paragraph (3), if any property 
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is used for a project that receives assistance under 
subsection (a) and consists of activities described in 
paragraph (1) or (2) of subsection (a), and the sale 
or other disposition of the property occurs before the 
expiration of the 15-year period beginning on the 
date that operation of the project begins, the recipi-
ent or project sponsor who received the assistance 
shall comply with such terms and conditions as the 
Secretary may prescribe to prevent the recipient or 
project sponsor from unduly benefitting from such 
sale or disposition. 
‘‘(3) EXCEPTION.—A recipient or project spon-
sor shall not be required to make the repayments, 
and comply with the terms and conditions, required 
under paragraph (1) or (2) if— 
‘‘(A) the sale or disposition of the property 
used for the project results in the use of the 
property for the direct benefit of very low-in-
come persons; 
‘‘(B) all of the proceeds of the sale or dis-
position are used to provide transitional or per-
manent housing meeting the requirements of 
this subtitle; 
‘‘(C) project-based rental assistance or op-
erating cost assistance from any Federal pro-
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gram or an equivalent State or local program is 
no longer made available and the project is 
meeting applicable performance standards, pro-
vided that the portion of the project that had 
benefitted from such assistance continues to 
meet the tenant income and rent restrictions for 
low-income units under section 42(g) of the In-
ternal Revenue Code of 1986; or 
‘‘(D) there are no individuals and families 
in the geographic area who are homeless, in 
which case the project may serve individuals 
and families at risk of homelessness. 
‘‘(e) STAFF TRAINING.—The Secretary may allow 
reasonable costs associated with staff training to be in-
cluded as part of the activities described in subsection (a). 
‘‘(f) ELIGIBILITY FOR PERMANENT HOUSING.—Any 
project that receives assistance under subsection (a) and 
that provides project-based or sponsor-based permanent 
housing for homeless individuals or families with a dis-
ability, including projects that meet the requirements of 
subsection (a) and subsection (d)(2)(A) of section 428 
may also serve individuals who had previously met the re-
quirements for such project prior to moving into a dif-
ferent permanent housing project. 
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‘‘(g) ADMINISTRATION OF RENTAL ASSISTANCE.— 
Provision of permanent housing rental assistance shall be 
administered by a State, unit of general local government, 
or public housing agency.’’. 
SEC. 303. HIGH PERFORMING COMMUNITIES. 
The McKinney-Vento Homeless Assistance Act is 
amended by striking section 424 (42 U.S.C. 11384) and 
inserting the following: 
‘‘SEC. 424. INCENTIVES FOR HIGH-PERFORMING COMMU-
NITIES. 
‘‘(a) DESIGNATION AS A HIGH-PERFORMING COMMU-
NITY.— 
‘‘(1) IN GENERAL.—The Secretary shall des-
ignate, on an annual basis, which collaborative appli-
cants represent high-performing communities. 
‘‘(2) CONSIDERATION.—In determining whether 
to designate a collaborative applicant as a high-per-
forming community under paragraph (1), the Sec-
retary shall establish criteria to ensure that the re-
quirements described under paragraphs (1)(B) and 
(2)(B) of subsection (d) are measured by comparing 
homeless individuals and families under similar cir-
cumstances, in order to encourage projects in the ge-
ographic area to serve homeless individuals and fam-
ilies with more severe barriers to housing stability. 
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‘‘(3) 2-YEAR PHASE IN.—In each of the first 2 
years after the effective date under section 503 of 
the Homeless Emergency Assistance and Rapid 
Transition to Housing Act of 2008, the Secretary 
shall designate not more than ten collaborative ap-
plicants as high-performing communities. 
‘‘(4) EXCESS OF QUALIFIED APPLICANTS.—If, 
during the 2-year period described under paragraph 
(2), more than ten collaborative applicants could 
qualify to be designated as high-performing commu-
nities, the Secretary shall designate the ten that 
have, in the discretion of the Secretary, the best per-
formance based on the criteria described under sub-
section (d). 
‘‘(5) TIME LIMIT ON DESIGNATION.—The des-
ignation of any collaborative applicant as a high-per-
forming community under this subsection shall be 
effective only for the year in which such designation 
is made. The Secretary, on an annual basis, may 
renew any such designation. 
‘‘(b) APPLICATION.— 
‘‘(1) IN
GENERAL.—A collaborative applicant 
seeking designation as a high-performing community 
under subsection (a) shall submit an application to 
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the Secretary at such time, and in such manner as 
the Secretary may require. 
‘‘(2) CONTENT OF APPLICATION.—In any appli-
cation submitted under paragraph (1), a collabo-
rative applicant shall include in such application— 
‘‘(A) a report showing how any money re-
ceived under this subtitle in the preceding year 
was expended; and 
‘‘(B) information that such applicant can 
meet the requirements described under sub-
section (d). 
‘‘(3) PUBLICATION OF APPLICATION.—The Sec-
retary shall— 
‘‘(A) publish any report or information 
submitted in an application under this section 
in the geographic area represented by the col-
laborative applicant; and 
‘‘(B) seek comments from the public as to 
whether the collaborative applicant seeking des-
ignation as a high-performing community meets 
the requirements described under subsection 
(d). 
‘‘(c) USE OF FUNDS.—Funds awarded under section 
422(a) to a project sponsor who is located in a high-per-
forming community may be used— 
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‘‘(1) for any of the eligible activities described 
in section 423; or 
‘‘(2) for any of the eligible activities described 
in paragraphs (4) and (5) of section 415(a). 
‘‘(d) DEFINITION
OF HIGH-PERFORMING COMMU-
NITY.—For purposes of this section, the term ‘high-per-
forming community’ means a geographic area that dem-
onstrates through reliable data that all five of the fol-
lowing requirements are met for that geographic area: 
‘‘(1) TERM
OF
HOMELESSNESS.—The mean 
length of episodes of homelessness for that geo-
graphic area— 
‘‘(A) is less than 20 days; or 
‘‘(B) for individuals and families in similar 
circumstances in the preceding year was at 
least 10 percent less than in the year before. 
‘‘(2) FAMILIES LEAVING HOMELESSNESS.—Of 
individuals and families— 
‘‘(A) who leave homelessness, fewer than 5 
percent of such individuals and families become 
homeless again at any time within the next 2 
years; or 
‘‘(B) in similar circumstances who leave 
homelessness, the percentage of such individ-
uals and families who become homeless again 
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within the next 2 years has decreased by at 
least 20 percent from the preceding year. 
‘‘(3) COMMUNITY
ACTION.—The communities 
that compose the geographic area have— 
‘‘(A) actively encouraged homeless individ-
uals and families to participate in homeless as-
sistance services available in that geographic 
area; and 
‘‘(B) included each homeless individual or 
family who sought homeless assistance services 
in the data system used by that community for 
determining compliance with this subsection. 
‘‘(4) EFFECTIVENESS
OF
PREVIOUS
ACTIVI-
TIES.—If recipients in the geographic area have 
used funding awarded under section 422(a) for eligi-
ble activities described under section 415(a) in pre-
vious years based on the authority granted under 
subsection (c), that such activities were effective at 
reducing the number of individuals and families who 
became homeless in that community. 
‘‘(5) FLEXIBILITY TO SERVE PERSONS DEFINED 
AS
HOMELESS
UNDER
OTHER
FEDERAL
LAWS.— 
With respect to collaborative applicants exercising 
the authority under section 422(j) to serve homeless 
families with children and youth defined as homeless 
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under other Federal statutes, effectiveness in achiev-
ing the goals and outcomes identified in subsection 
427(b)(1)(F) according to such standards as the 
Secretary shall promulgate. 
‘‘(e) COOPERATION AMONG ENTITIES.—A collabo-
rative applicant designated as a high-performing commu-
nity under this section shall cooperate with the Secretary 
in distributing information about successful efforts within 
the geographic area represented by the collaborative appli-
cant to reduce homelessness.’’. 
SEC. 304. PROGRAM REQUIREMENTS. 
Section 426 of the McKinney-Vento Homeless Assist-
ance Act (42 U.S.C. 11386) is amended— 
(1) by striking subsections (a), (b), and (c) and 
inserting the following: 
‘‘(a) SITE CONTROL.—The Secretary shall require 
that each application include reasonable assurances that 
the applicant will own or have control of a site for the 
proposed project not later than the expiration of the 12- 
month period beginning upon notification of an award for 
grant assistance, unless the application proposes providing 
supportive housing assistance under section 423(a)(3) or 
housing that will eventually be owned or controlled by the 
families and individuals served. An applicant may obtain 
ownership or control of a suitable site different from the 
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site specified in the application. If any recipient or project 
sponsor fails to obtain ownership or control of the site 
within 12 months after notification of an award for grant 
assistance, the grant shall be recaptured and reallocated 
under this subtitle. 
‘‘(b) REQUIRED AGREEMENTS.—The Secretary may 
not provide assistance for a proposed project under this 
subtitle unless the collaborative applicant involved 
agrees— 
‘‘(1) to ensure the operation of the project in 
accordance with the provisions of this subtitle; 
‘‘(2) to monitor and report to the Secretary the 
progress of the project; 
‘‘(3) to ensure, to the maximum extent prac-
ticable, that individuals and families experiencing 
homelessness are involved, through employment, pro-
vision of volunteer services, or otherwise, in con-
structing, rehabilitating, maintaining, and operating 
facilities for the project and in providing supportive 
services for the project; 
‘‘(4) to require certification from all project 
sponsors that— 
‘‘(A) they will maintain the confidentiality 
of records pertaining to any individual or family 
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provided family violence prevention or treat-
ment services through the project; 
‘‘(B) that the address or location of any 
family violence shelter project assisted under 
this subtitle will not be made public, except 
with written authorization of the person respon-
sible for the operation of such project; 
‘‘(C) they will establish policies and prac-
tices that are consistent with, and do not re-
strict the exercise of rights provided by, subtitle 
B of title VII, and other laws relating to the 
provision of educational and related services to 
individuals and families experiencing homeless-
ness; 
‘‘(D) in the case of programs that provide 
housing or services to families, they will des-
ignate a staff person to be responsible for en-
suring that children being served in the pro-
gram are enrolled in school and connected to 
appropriate services in the community, includ-
ing early childhood programs such as Head 
Start, part C of the Individuals with Disabil-
ities Education Act, and programs authorized 
under subtitle B of title VII of this Act(42 
U.S.C. 11431 et seq.); and 
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‘‘(E) they will provide data and reports as 
required by the Secretary pursuant to the Act; 
‘‘(5) if a collaborative applicant is a unified 
funding agency under section 402(g) and receives 
funds under subtitle C to carry out the payment of 
administrative costs described in section 423(a)(11), 
to establish such fiscal control and fund accounting 
procedures as may be necessary to assure the proper 
disbursal of, and accounting for, such funds in order 
to ensure that all financial transactions carried out 
with such funds are conducted, and records main-
tained, in accordance with generally accepted ac-
counting principles; 
‘‘(6) to monitor and report to the Secretary the 
provision of matching funds as required by section 
430; 
‘‘(7) to take the educational needs of children 
into account when families are placed in emergency 
or transitional shelter and will, to the maximum ex-
tent practicable, place families with children as close 
as possible to their school of origin so as not to dis-
rupt such children’s education; and 
‘‘(8) to comply with such other terms and con-
ditions as the Secretary may establish to carry out 
this subtitle in an effective and efficient manner.’’; 
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(2) by redesignating subsection (d) as sub-
section (c); 
(3) in the first sentence of subsection (c) (as so 
redesignated by paragraph (2) of this subsection), by 
striking ‘‘recipient’’ and inserting ‘‘recipient or 
project sponsor’’; 
(4) by striking subsection (e); 
(5) by redesignating subsections (f), (g), and 
(h), as subsections (d), (e), and (f), respectively; 
(6) in the first sentence of subsection (e) (as so 
redesignated by paragraph (5) of this section), by 
striking ‘‘recipient’’ each place it appears and insert-
ing ‘‘recipient or project sponsor’’; 
(7) by striking subsection (i); and 
(8) by redesignating subsection (j) as sub-
section (g). 
SEC. 305. SELECTION CRITERIA, ALLOCATION AMOUNTS, 
AND FUNDING. 
The McKinney-Vento Homeless Assistance Act is 
amended— 
(1) by repealing section 429 (42 U.S.C. 11389); 
and 
(2) by redesignating sections 427 and 428 (42 
U.S.C. 11387, 11388) as sections 432 and 433, re-
spectively; and 
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