I
105TH CONGRESS
1ST SESSION
H. R. 2307
To facilitate the effective and efficient management of the homeless assistance
programs of the Department of Housing and Urban Development, includ-
ing the merger of such programs into one performance fund, and for
other purposes.
IN THE HOUSE OF REPRESENTATIVES
JULY 30, 1997
Mr. KENNEDY of Massachusetts (by request) introduced the following bill;
which was referred to the Committee on Banking and Financial Services
A BILL
To facilitate the effective and efficient management of the
homeless assistance programs of the Department of
Housing and Urban Development, including the merger
of such programs into one performance fund, and for
other purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Homelessness Assistance and Management Reform Act
of 1997’’.
(b) TABLE OF CONTENTS.
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Sec. 1. Short title and table of contents.
TITLE I—HOMELESS ASSISTANCE PERFORMANCE FUND
Sec. 2. Findings and purposes.
Sec. 3. Establishment of the homeless assistance performance fund.
Sec. 4. Repeal and savings provisions.
Sec. 5. Implementation.
Sec. 6. Report.
Sec. 7. Conforming changes to table of contents.
TITLE II—MANAGEMENT IMPROVEMENTS: HOME AND HOPE FOR
HOMEOWNERSHIP OF SINGLE FAMILY HOMES PROGRAMS
Sec. 11. Determination of low-income eligibility for HOME homeownership as-
sistance.
Sec. 12. Stabilization of HOME funding thresholds and revision of timing re-
quirements for notifications and submissions.
Sec. 13. Determination of HOME match on program year basis.
Sec. 14. Tenant and participant protections under the HOME program.
Sec. 15. Eligibility of private property under the HOPE for homeownership of
single family homes program.
TITLE I—HOMELESS ASSISTANCE
PERFORMANCE FUND
SEC. 2. FINDINGS AND PURPOSES.
(a) FINDINGS.—The Congress finds that—
(1) more Americans are homeless than at any
time since the Great Depression;
(2) the homeless population across the Nation
is diverse and its characteristics differ by locality,
thereby placing localities in the best position to de-
termine the homeless needs for their communities;
(3) the different needs within the homeless pop-
ulation call for a continuum of care system which
encompasses the need for outreach and assessment,
emergency assistance, transitional housing and serv-
ices (where needed), and permanent housing or per-
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manent supportive housing to help homeless individ-
uals become more self-sufficient; and
(4) the separate Federal programs designed to
solve specific homeless problems have different dis-
tribution mechanisms, rules, and reporting require-
ments that—
(A) exceed the resources available to the
Secretary, States and local governments, and
nonprofit homeless providers;
(B) restrict the flexibility of communities
to fashion comprehensive homeless assistance
systems that meet the needs of homeless indi-
viduals in their areas;
(C) 
result 
in 
unpredictable 
funding
streams that hinder the ability of communities
and service providers to plan, develop, and im-
plement comprehensive systems to assist home-
less individuals and families; and
(D) impede the integration and coordina-
tion of Federal, State, and local government
and private for-profit resources available within
a community.
(b) PURPOSES.—The purposes of this title are to fa-
cilitate the effective and efficient management of HUD’s
homeless assistance programs by—
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(1) reducing and preventing homelessness by
supporting the creation and maintenance of commu-
nity-based, comprehensive systems dedicated to re-
turning families and individuals to self-sufficiency;
(2) reorganizing the homeless housing assist-
ance authorities under the Stewart B. McKinney
Homeless Assistance Act into a Homeless Assistance
Performance Fund;
(3) assisting States and local governments, in
partnership with private nonprofit service providers,
to use homeless funding more efficiently and effec-
tively;
(4) simplifying and making more flexible the
provision of Federal homeless assistance;
(5) maximizing a community’s ability to imple-
ment a coordinated, comprehensive system for pro-
viding assistance to homeless families and individ-
uals;
(6) making more efficient and equitable the
manner in which the Secretary distributes homeless
assistance;
(7) reducing the Federal role in local decision-
making for homeless assistance programs;
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(8) reducing the costs to governmental jurisdic-
tions and private nonprofit organizations in applying
for and using assistance; and
(9) advancing the goal of meeting the needs of
the homeless population through mainstream pro-
grams and establishing continuum of care systems
necessary to achieve that goal.
SEC. 3. ESTABLISHMENT OF THE HOMELESS ASSISTANCE
PERFORMANCE FUND.
Title IV of the Stewart B. McKinney Homeless As-
sistance Act is amended by striking the title heading and
all that follows through the end of the title and inserting
the following:
‘‘TITLE IV—HOMELESS ASSIST-
ANCE PERFORMANCE FUND
‘‘SEC. 401. DEFINITIONS.
For purposes of this title the following definitions
shall apply—
‘‘(1) ALLOCATION
UNIT
OF
GENERAL
LOCAL
GOVERNMENT.—
‘‘(A) IN GENERAL.—The term ‘allocation
unit of general local government’ means a met-
ropolitan city or an urban county.
‘‘(B) CONSORTIA.—The term ‘allocation
unit of general local government’ may include a
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consortium of geographically contiguous metro-
politan cities and urban counties, if the Sec-
retary determines that the consortium—
‘‘(i) has sufficient authority and ad-
ministrative capability to carry out the
purposes of this title on behalf of its mem-
ber jurisdictions; and
‘‘(ii) will, according to a written cer-
tification by the State (or States, if the
consortium includes jurisdictions in more
than one State), direct its activities to the
implementation of a continuum of care sys-
tem within the State or States.
‘‘(2) APPLICANT.—The term ‘applicant’ means
a grantee submitting an application under section
403.
‘‘(3) CONSOLIDATED PLAN.—The term ‘consoli-
dated plan’ means the single comprehensive plan
that the Secretary prescribes for submission by ju-
risdictions that consolidates and fulfills the require-
ments of—
‘‘(A) the comprehensive housing afford-
ability strategy under title I of the Cranston-
Gonzalez National Affordable Housing Act;
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‘‘(B) the community development plan
under section 104 of the Housing and Commu-
nity Development Act of 1974; and
‘‘(C) the submission requirements for for-
mula funding under—
‘‘(i) the Community Development
Block Grant program (authorized by title I
of the Housing and Community Develop-
ment Act of 1974);
‘‘(ii) the HOME program (authorized
by title II of the Cranston-Gonzalez Na-
tional Affordable Housing Act);
‘‘(iii) the Homeless Assistance Per-
formance Fund (authorized under this
title); and
‘‘(iv) the AIDS Housing Opportunity
Act (authorized by subtitle D of title VIII
of the Cranston-Gonzalez National Afford-
able Housing Act).
A jurisdiction’s consolidated plan shall be coordi-
nated and consistent with a public housing agency’s
five-year comprehensive plan, if any, required under
section 14(e) of the United States Housing Act of
1937.
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‘‘(4) CONTINUUM OF CARE SYSTEM.—A ‘contin-
uum of care system’ is a system developed by a local
or State homeless assistance board. The system shall
include—
‘‘(A) a system of outreach and assessment,
including drop-in centers, 24-hour hotlines,
counselors, and other activities designed to en-
gage homeless individuals and families, bring
them into the continuum of care system, and
determine their individual housing and service
needs;
‘‘(B) emergency shelters with essential
services to ensure that homeless individuals and
families receive shelter;
‘‘(C) transitional housing with appropriate
supportive services to help ensure that homeless
individuals and families are prepared to make
the transition to increased responsibility and
permanent housing;
‘‘(D) permanent housing, or permanent
supportive housing, to help meet the long-term
housing needs of homeless individuals and fami-
lies;
‘‘(E) coordination between assistance pro-
vided under this title and assistance provided
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under other Federal, State, and local programs
that may be used to assist homeless individuals
and families, including both targeted homeless
assistance programs and other programs ad-
ministered by the Departments of Veterans Af-
fairs, Labor, Health and Human Services, and
Education; and
‘‘(F) a system of referrals for subpopula-
tions of the homeless (such as homeless veter-
ans, families with children, battered spouses,
persons with mental illness, persons who have
chronic problems with alcohol, drugs, or both,
persons with other chronic health problems, and
persons who have acquired immunodeficiency
syndrome and related diseases) to the appro-
priate agencies, programs, or services (including
health care, job training, and income support)
necessary to meet their needs.
‘‘(5) GRANTEE.—The term ‘grantee’ means—
‘‘(A) an allocation unit of general local
government or insular area that administers a
grant under section 408(b)(1);
‘‘(B) an allocation unit of general local
government or insular area that designates a
public agency or a private nonprofit organiza-
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tion (or a combination of such organizations) to
administer 
grant 
amounts 
under 
section
408(b)(2);
‘‘(C) a State or a private nonprofit organi-
zation designated by the Secretary to admin-
ister 
grant 
amounts 
under 
section
408(b)(3)(A);
‘‘(D) a private nonprofit organization re-
ceiving grant amounts distributed by the Sec-
retary under section 408(b)(3)(B);
‘‘(E) a State administering a grant under
section 408(c)(1)(A);
‘‘(F) a unit of general local government re-
ceiving a grant from the Secretary under sec-
tion 408(c)(4)(A);
‘‘(G) a public agency or private nonprofit
organization (or a combination of such organi-
zations) designated by a unit of general local
government to administer a grant from the Sec-
retary under section 408(c)(4)(B); or
‘‘(H) a private nonprofit organization re-
ceiving a grant from the Secretary under sec-
tion 408(c)(4)(C).
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‘‘(6) 
HOMELESS
INDIVIDUAL.—The 
term
‘homeless individual’ has the same meaning as in
section 103 of this Act.
‘‘(7) INSULAR AREA.—The term ‘insular area’
means the Virgin Islands, Guam, American Samoa,
and the Northern Mariana Islands.
‘‘(8) LOCAL HOMELESS ASSISTANCE BOARD.—
The term ‘local homeless assistance board’ means
the board established for applicants and grantees
under section 409(c) or 409(e).
‘‘(9) LOW-DEMAND
SERVICES
AND
REFER-
RALS.—The term ‘low-demand services and referrals’
means the provision of health care, mental health,
substance abuse, and other supportive services and
referrals for services in a non-coercive manner,
which may include medication management, edu-
cation, counseling, job training, and assistance in
obtaining entitlement benefits and in obtaining other
supportive services, including mental health and sub-
stance abuse treatment.
‘‘(10) METROPOLITAN CITY.—The term ‘metro-
politan city’ has the same meaning as in section
102(a) of the Housing and Community Development
Act of 1974.
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‘‘(11) PERSON WITH DISABILITIES.—The term
‘person with disabilities’ means a person who—
‘‘(A) has a disability as defined in section
223 of the Social Security Act;
‘‘(B) is determined to have, as determined
by the Secretary, a physical, mental, or emo-
tional impairment which—
‘‘(i) is expected to be of long-contin-
ued and indefinite duration;
‘‘(ii) substantially impedes his or her
ability to live independently; and
‘‘(iii) is of such a nature that such
ability could be improved by more suitable
housing conditions;
‘‘(C) has a developmental disability, as de-
fined in section 102 of the Developmental Dis-
abilities Assistance and Bill of Rights Act; or
‘‘(D) 
has 
the 
disease 
of 
acquired
immunodeficiency syndrome or any conditions
arising from the etiologic agent for acquired
immunodeficiency syndrome.
Subparagraph (D) shall not be construed to limit eligi-
bility under subparagraphs (A) through (C) or the provi-
sions referred to in subparagraphs (A) through (C).
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‘‘(12) PRIVATE
NONPROFIT
ORGANIZATION.—
The term ‘private nonprofit organization’ means a
private organization—
‘‘(A) no part of the net earnings of which
inures to benefits of any member, founder, con-
tributor, or individual;
‘‘(B) that has a voluntary board;
‘‘(C) that has an accounting system, or has
designated a fiscal agent in accordance with re-
quirements established by the Secretary; and
‘‘(D) that practices nondiscrimination in
the provision of assistance.
‘‘(13) PROJECT SPONSOR.—The term ‘project
sponsor’ means an entity that—
‘‘(A) provides housing or assistance for
homeless individuals or families by carrying out
activities under this title; and
‘‘(B) meets such minimum standards as
the Secretary considers appropriate.
‘‘(14) RECIPIENT.—The term ‘recipient’ means
a grantee (other than a State when it is distributing
grant amounts to State recipients) and a State re-
cipient.
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‘‘(15) 
SECRETARY.—The 
term 
‘Secretary’
means the Secretary of Housing and Urban Develop-
ment.
‘‘(16) STATE.—The term ‘State’ means each of
the several States and the Commonwealth of Puerto
Rico. The term includes an agency or instrumental-
ity of a State that is established pursuant to legisla-
tion and designated by the chief executive officer to
act on behalf of the jurisdiction with regard to provi-
sions of this title.
‘‘(17) STATE HOMELESS ASSISTANCE BOARD.—
The term ‘State homeless assistance board’ means
the board established for the State under section
409(d)(1).
‘‘(18) STATE RECIPIENT.—The term ‘State re-
cipient’ means the following entities receiving
amounts 
from 
the 
State 
under 
section
408(c)(2)(B)—
‘‘(A) a unit of general local government
within the State (other than an allocation unit
of general local government); and
‘‘(B) in the case of an area of the State
with significant homeless needs where no State
recipient is identified, one or more private non-
profit organizations serving that area.
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‘‘(19) UNIT
OF
GENERAL
LOCAL
GOVERN-
MENT.—The term ‘unit of general local government’
means—
‘‘(A) a city, town, township, county, parish,
village, or other general purpose political sub-
division of a State;
‘‘(B) the District of Columbia; and
‘‘(C) any agency or instrumentality thereof
that is established pursuant to legislation and
designated by the chief executive officer to act
on behalf of the jurisdiction with regard to pro-
visions of this title.
‘‘(20) URBAN COUNTY.—The term ‘urban coun-
ty’ has the same meaning as in section 102(a) of the
Housing and Community Development Act of 1974.
‘‘(21) VERY LOW-INCOME FAMILIES.—The term
‘very low-income families’ has the same meaning as
in section 104 of the Cranston-Gonzalez National
Affordable Housing Act.
‘‘SEC. 402. AUTHORIZATIONS.
‘‘(a) IN GENERAL.—The Secretary may make grants
to carry out activities to assist homeless individuals and
families in support of continuum of care systems, in ac-
cordance with this title.
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‘‘(b) FUNDING AMOUNTS.—There are authorized to
be appropriated to carry out this title $823,000,000 for
fiscal year 1998 and such sums as may be necessary for
each of fiscal years 1999, 2000, 2001, and 2002. Any
amounts appropriated shall remain available until ex-
pended.
‘‘SEC. 403. APPLICATION.
‘‘(a) IN GENERAL.—Each applicant shall submit the
application required under this section in such form and
in accordance with such procedures as the Secretary shall
prescribe.
Where the applicant is a State or unit of general local
government, the application shall be submitted as part of
the homeless assistance component of the consolidated
plan (which component, in the case of a State, shall not
include allocation units of general local government).
‘‘(b) CONTINUUM OF CARE SUBMISSION.—
‘‘(1) IN GENERAL.—The local homeless assist-
ance board or the State homeless assistance board
shall prepare, and submit to the applicant for ap-
proval, those portions of the application related to
the development and implementation of the contin-
uum of care system, as described in paragraph (2)
or (3), as applicable.
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‘‘(2) SUBMISSION BY LOCAL HOMELESS ASSIST-
ANCE BOARD.—The local homeless assistance board
shall develop and submit to the applicant for ap-
proval—
‘‘(A) a Continuum of Care system consist-
ent with that defined under section 401(4).
This system shall be designed to incorporate
any strengths and fill any gaps in the jurisdic-
tion’s current homeless assistance activities,
and shall include a description of efforts to ad-
dress the problems faced by each of the dif-
ferent subpopulations of homeless individuals;
‘‘(B) a multi-year strategy for implement-
ing the Continuum of Care system, including
appropriate timetables and budget estimates for
accomplishing each element of the strategy;
‘‘(C) a 1-year plan, identifying all activities
to be carried out with assistance under this title
and with assistance from other HUD resources
allocated in accordance with the consolidated
plan, and describing how these activities will
further the strategy; and
‘‘(D) any specific performance measures
and benchmarks for use in assessing the per-
formance of the grantee under this title that
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are in addition to national performance meas-
ures and benchmarks established by the Sec-
retary.
‘‘(3) SUBMISSION BY STATE HOMELESS ASSIST-
ANCE BOARD.—The State homeless assistance board
shall develop and submit to the applicant for ap-
proval—
‘‘(A) a Continuum of Care system consist-
ent with that defined under section 401(4).
This system shall be designed to incorporate
any strengths and fill any gaps in the jurisdic-
tion’s current homeless assistance activities,
and shall include a description of efforts to ad-
dress the problems faced by each of the dif-
ferent subpopulations of homeless individuals;
‘‘(B) a multi-year strategy for implement-
ing the continuum of care systems in areas of
the State outside allocation units of general
local government, including the actions the
State will take to achieve the goals set out in
the strategy;
‘‘(C) a 1-year plan identifying—
‘‘(i) in the case of a State carrying
out its own activities under section
408(c)(2)(A), the activities to be carried
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out with assistance under this title and de-
scribing how these activities will further
the strategy; and
‘‘(ii) in the case of a State distribut-
ing grant amounts to State recipients
under section 408(c)(2)(B), the criteria
that the State will use in distributing
amounts awarded under this title, the
method of distribution, and the relation-
ship of the method of distribution to the
homeless assistance strategy; and
‘‘(D) any specific performance measures
and benchmarks for use in assessing the per-
formance of the grantee under this title that
are in addition to national performance meas-
ures and benchmarks established by the Sec-
retary.
‘‘(c) CONTINUUM OF CARE APPROVAL.—The appli-
cant shall review the continuum of care submission to de-
termine if it is consistent with the homeless needs assess-
ment and the inventory of homeless facilities portions of
the consolidated plan. The applicant may alter the submis-
sion where it is inconsistent, but shall give the State or
local homeless assistance board an opportunity to com-
ment on any proposed alterations, and shall include in the
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application sufficient justification for any alterations and
any comments of the homeless assistance board on the al-
terations.
‘‘(d) SUBMISSION REQUIREMENTS FOR APPLICANTS
OTHER THAN STATES.—Each application from an appli-
cant other than a State shall contain at a minimum—
‘‘(1) the continuum of care submission de-
scribed in subsection (b)(2), and, if applicable, any
alterations, justifications, and comments under sub-
section (c);
‘‘(2) a determination on whether the assistance
under this title will be administered by the jurisdic-
tion, a public agency or private nonprofit organiza-
tion, or the State, as appropriate under subsections
(b) and (c) of section 408;
‘‘(3) certifications or other such forms of proof
of commitments of financial and other resources suf-
ficient to comply with the match requirements under
section 405(c)(1);
‘‘(4) a certification that the applicant is follow-
ing a current approved consolidated plan;
‘‘(5) a certification that the grant will be con-
ducted and administered in conformity with title VI
of the Civil Rights Act of 1964, section 504 of the
Rehabilitation Act of 1973, and the Fair Housing
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Act, and the grantee will affirmatively further fair
housing; and
‘‘(6) a certification that the applicant will com-
ply with the requirements of this title and other ap-
plicable laws.
‘‘(e) SUBMISSION REQUIREMENTS
FOR STATES.—
Each application from a State shall contain—
‘‘(1) the continuum of care submission de-
scribed in subsection (b)(3) and, if applicable, any
alterations, justifications, and comments under sub-
section (c);
‘‘(2) certifications or other such forms of proof
of commitments of financial and other resources suf-
ficient to comply with the match requirements under
section 405(c)(1);
‘‘(3) a certification that the applicant is follow-
ing a current approved consolidated plan;
‘‘(4) a certification that the grant will be con-
ducted and administered in conformity with title VI
of the Civil Rights Act of 1964, section 504 of the
Rehabilitation Act of 1973, and the Fair Housing
Act, and the grantee will affirmatively further fair
housing; and
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‘‘(5) a certification that the State and State re-
cipients will comply with the requirements of this
title and other applicable laws.
‘‘(f) APPLICATION APPROVAL.—The application shall
be approved by the Secretary unless the Secretary deter-
mines that the application is substantially incomplete, or
determines, under section 409(c)(5) or 409(d)(1)(B), that
the process for constituting or operating the local or State
homeless assistance board is unfair.
‘‘SEC. 404. ELIGIBLE PROJECTS AND ACTIVITIES.
‘‘(a) ELIGIBLE PROJECTS.—Grants under this title
may be used to carry out activities described in subsection
(b) in support of the following types of projects—
‘‘(1) EMERGENCY ASSISTANCE.—Assistance de-
signed to prevent homelessness or to meet the emer-
gency needs of homeless individuals and families, in-
cluding one or more of the following—
‘‘(A) PREVENTION.—Efforts to prevent
homelessness of a very low-income individual or
family that has received an eviction notice, no-
tice of mortgage foreclosure, or notice of termi-
nation of utilities, if—
‘‘(i) the individual or family cannot
make the required payments due to a sud-
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den reduction in income or other financial
emergency; and
‘‘(ii) the assistance is necessary to
avoid imminent eviction, foreclosure, or
termination of services.
‘‘(B) OUTREACH
AND
ASSESSMENT.—Ef-
forts designed to inform individuals and fami-
lies about the availability of services, to bring
them into the continuum of care system, and to
determine which services or housing are appro-
priate to the needs of the individual or family.
‘‘(C) EMERGENCY
SHELTER.—The provi-
sion of short-term emergency shelter with es-
sential supportive services for homeless individ-
uals and families.
‘‘(2) SAFE HAVEN HOUSING.—A structure or a
clearly identifiable portion of a structure that—
‘‘(A) provides housing and low-demand
services and referrals for homeless individuals
with serious mental illness—
‘‘(i) who are currently residing pri-
marily in places not designed for, or ordi-
narily used as, a regular sleeping accom-
modation for human beings; and
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‘‘(ii) who have been unwilling or un-
able to participate in mental health or sub-
stance abuse treatment programs or to re-
ceive other supportive services; except that
a person whose sole impairment is sub-
stance abuse shall not be considered an eli-
gible person;
‘‘(B) provides 24-hour residence for eligible
individuals who may reside for an unspecified
duration;
‘‘(C) provides private or semi-private ac-
commodations;
‘‘(D) may provide for the common use of
kitchen facilities, dining rooms, and bathrooms;
‘‘(E) may provide supportive services to el-
igible persons who are not residents on a drop-
in basis; and
‘‘(F) provides occupancy limited to no
more than 25 persons.
‘‘(3) TRANSITIONAL
HOUSING.—Housing and
appropriate supportive services that are designed to
facilitate the movement of homeless individuals to
permanent housing, generally within 24 months.
‘‘(4) PERMANENT
HOUSING
AND
PERMANENT
HOUSING AND SUPPORTIVE SERVICES FOR PERSONS
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WITH DISABILITIES.—Permanent housing for home-
less individuals, and permanent housing and sup-
portive services for homeless persons with disabil-
ities, the latter of which may be designed to provide
housing and services solely for persons with disabil-
ities, or may provide housing for such persons in a
multifamily housing, condominium, or cooperative
project.
‘‘(5) SINGLE ROOM OCCUPANCY HOUSING.—A
unit for occupancy by one person, which need not
(but may) contain food preparation or sanitary fa-
cilities, or both, and may provide services such as
mental health services, substance abuse treatment,
job training, and employment programs.
‘‘(6) OTHER
PROJECTS.—Such other projects
as the Secretary determines will further the pur-
poses of title I of the Homelessness Assistance and
Management Reform Act of 1997.
‘‘(b) ELIGIBLE ACTIVITIES.—Grants under this title
may be used to carry out the following activities in support
of projects described in subsection (a)—
‘‘(1) 
HOMELESSNESS
PREVENTION
ACTIVI-
TIES.—Short-term mortgage, rental, and utilities
payments and other short-term assistance designed
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to prevent the imminent homelessness of the individ-
uals and families described in subsection (a)(1)(A).
‘‘(2) OUTREACH
AND
ASSESSMENT.—Drop-in
centers, 24-hour hotlines, counselors, and other ac-
tivities designed to engage homeless individuals and
families, bring them into the continuum of care sys-
tem, and determine their individual housing and
service needs.
‘‘(3) ACQUISITION AND REHABILITATION.—The
acquisition, rehabilitation, or acquisition and reha-
bilitation of real property.
‘‘(4) NEW CONSTRUCTION.—The new construc-
tion of a project, including the cost of the site.
‘‘(5) OPERATING COSTS.—The costs of operat-
ing a project, including salaries and benefits, main-
tenance, insurance, utilities, replacement reserve ac-
counts, and furnishings.
‘‘(6) LEASING.—Leasing of an existing struc-
ture or structures, or units within these structures,
including the provision of long-term rental assistance
contracts.
‘‘(7) TENANT
ASSISTANCE.—The provision of
security or utility deposits, rent or utility payments
for the first month of residence at a new location,
and relocation assistance.
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‘‘(8) SUPPORTIVE SERVICES.—The provision of
essential supportive services including, but not lim-
ited to, case management, housing counseling, job
training and placement, primary health care, mental
health services, substance abuse treatment, child
care, transportation, emergency food and clothing,
family violence services, education services, moving
services, assistance in obtaining entitlement benefits,
and referral to veterans services and referral to legal
services.
‘‘(9) ADMINISTRATION.—
‘‘(A) IN
GENERAL.—Expenses incurred
in—
‘‘(i) planning, developing, and estab-
lishing a program under this title;
‘‘(ii) establishing, selecting, and sup-
porting the local homeless assistance board
or the State homeless assistance board;
and
‘‘(iii) administering the program.
‘‘(B) Limitations.—Not more than the fol-
lowing amounts may be used for administrative
costs under subparagraph (A)—
‘‘(i) 10 percent of any grant amounts
provided for a recipient for a fiscal year
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(including amounts used by a State to
carry out its own activities under section
408(c)(2)(A)); and
‘‘(ii) 5 percent of any grant amounts
provided to a State for a fiscal year that
the State uses to distribute funds to a
State recipient under section 408(c)(2)(B).
‘‘(10) Capacity building.
‘‘(A) In general.—Building the capacity of
private nonprofit organizations to participate in
the continuum of care system of the recipient.
‘‘(B) Limitations.—Not more than the fol-
lowing amounts may be used for capacity build-
ing under subparagraph (A)—
‘‘(i) 2 percent of any grant amounts
provided for a recipient for a fiscal year
(including amounts used by a State to
carry out its own activities under section
408(c)(2)(A)); and
‘‘(ii) 2 percent of any grant amounts
provided to a State for a fiscal year that
the State uses to distribute funds to a
State recipient under section 408(c)(2)(B).
‘‘(11) Other activities.—Other activities as the
Secretary determines will further the purposes of
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title I of the Homelessness Assistance and Manage-
ment Reform Act of 1997.
‘‘(c) Targeting to Subpopulations of Persons With
Disabilities.—Notwithstanding any other provision of law,
projects for persons with disabilities assisted under this
title may be targeted to specific subpopulations of such
persons, including (but not limited to) persons who—
‘‘(1) are seriously mentally ill;
‘‘(2) have chronic problems with drugs, alcohol,
or both; or
‘‘(3) have acquired immunodeficiency syndrome
or any conditions arising from the etiologic agency
for acquired immunodeficiency syndrome.
‘‘SEC. 405. MATCHING REQUIREMENT AND MAINTENANCE
OF EFFORT.
‘‘(a) Matching Requirement.—
‘‘(1) In general.—Each recipient shall make
contributions totaling not less than 50 percent of the
amounts made available for the recipient for any fis-
cal year under this title to carry out eligible activi-
ties. At the end of each program year, each recipient
shall certify to the Secretary that it has complied
with this section, and shall include with the certifi-
cation a description of the sources and amounts of
the matching contributions. Contributions under this
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section may not come from assistance provided
under this title.
‘‘(2) Reduction in matching requirements.—
‘‘(A) In general.—The Secretary shall re-
duce the matching requirement under para-
graph (1) during a fiscal year by—
‘‘(i) 50 percent for a jurisdiction that
certifies that it is in fiscal distress; and
‘‘(ii) 100 percent for a jurisdiction
that certifies that it is in severe fiscal dis-
tress.
For purposes of clauses (i) and (ii), the jurisdiction shall
make the certification on behalf of a recipient that is not
a governmental jurisdiction.
‘‘(B) Definitions.—For purposes of this
subsection—
‘‘(i) the term ‘‘fiscal distress’’ means
an allocation unit of general local govern-
ment, insular area, or State recipient that
is a governmental jurisdiction that satisfies
one of the distress criteria set forth in sub-
paragraph (C); and
‘‘(ii) the term ‘‘severe fiscal distress’’
means an allocation unit of general local
government, insular area, or State recipi-
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ent that is a governmental jurisdiction that
satisfies both of the distress criteria set
forth in subparagraph (C).
‘‘(C) Distress criteria.—For an allocation
unit of general local government, an insular
area, or a State recipient that is a govern-
mental jurisdiction certifying that it is dis-
tressed, the following criteria shall apply—
‘‘(i) POVERTY
RATE.—The average
poverty rate in the jurisdiction for the cal-
endar year immediately preceding the year
in which its fiscal year begins was equal to
or greater than 125 percent of the average
national poverty rate during such calendar
year (as determined according to informa-
tion of the Bureau of the Census).
‘‘(ii) PER CAPITA INCOME.—The aver-
age per capita income in the jurisdiction
for the calendar year immediately preced-
ing the year in which its fiscal year begins
was less than 75 percent of the average
national per capita income during such cal-
endar year (as determined according to in-
formation of the Bureau of the Census).
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‘‘(D) STATES.—In the case of States car-
rying out their own activities under section
408(c)(2)(A), the Secretary shall reduce the
matching requirement under paragraph (1) as
provided by the preceding subparagraphs, ex-
cept that the certification shall be made with
respect to the area, as determined by the Sec-
retary, in which the activities are to be carried
out.
‘‘(E) WAIVER IN DISASTER AREAS.—If a
recipient is located in an area in which a dec-
laration of a disaster pursuant to the Robert T.
Stafford Disaster Relief and Emergency Assist-
ance Act is in effect for any part of a fiscal
year, the Secretary may reduce the matching
requirement for that fiscal year under para-
graph (1) during that fiscal year by up to 100
percent.
‘‘(3) CALCULATION OF AMOUNTS.—In calculat-
ing the amount of matching contributions required
under paragraph (1), a recipient may include—
‘‘(A) any funds derived from a source,
other than assistance under this title or
amounts subject to subsection (b);
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‘‘(B) the value of any lease on a building;
and
‘‘(C) any salary paid to staff or any volun-
teer labor contributed to carry out the program.
‘‘(b) LIMITATION ON USE OF FUNDS.—No assistance
received under this title may be used to replace other
funds previously used, or designated for use, by the State,
State recipient (except when a State recipient is a private
nonprofit organization), allocation unit of general local
government or insular area to assist homeless individuals
and families.
‘‘SEC. 406. RESPONSIBILITIES OF RECIPIENTS, PROJECT
SPONSORS, AND OWNERS.
‘‘(a) USE OF ASSISTANCE THROUGH PRIVATE NON-
PROFIT ORGANIZATIONS.—
‘‘(1) IN GENERAL.—Each recipient shall ensure
that at least 50 percent of the grant amounts that
are made available to it under this title for any fiscal
year are made available to project sponsors that are
private nonprofit organizations.
‘‘(2) WAIVER.—The Secretary may waive or re-
duce the requirement of paragraph (1), if the recipi-
ent demonstrates to the Secretary that the require-
ment interferes with the ability of the recipient to
provide assistance under this title because of the
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paucity of qualified private non-profit organizations
in the jurisdiction of the recipient.
‘‘(b) HOUSING QUALITY.—Each recipient shall en-
sure that housing assisted with grant amounts provided
under this title is decent, safe, and sanitary and complies
with all applicable State and local housing codes, building
codes, and licensing requirements in the jurisdiction in
which the housing is located.
‘‘(c) PREVENTION OF UNDUE BENEFIT.—The Sec-
retary may prescribe such terms and conditions as the
Secretary considers necessary to prevent project sponsors
from unduly benefiting from the sale or other disposition
of projects, other than a sale or other disposition resulting
in the use of the project for the direct benefit of very low-
income families.
‘‘(d) CONFIDENTIALITY.—Each recipient shall de-
velop and implement procedures to ensure the confiden-
tiality of records pertaining to any individual provided
services assisted under this title for family violence preven-
tion or treatment or for such medical or other conditions
as the Secretary may prescribe, and to ensure that the
address or location of any project providing such services
will, except with written authorization of the person or
person responsible for the operation of such project, not
be made public.
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‘‘(e) EMPLOYMENT OF HOMELESS INDIVIDUALS.—
‘‘(1) To the maximum extent practicable, the
Secretary shall ensure that recipients, through em-
ployment, volunteer services, or otherwise, provide
opportunities for homeless individuals and families
to participate in—
‘‘(A) constructing, renovating, maintaining,
and operating facilities assisted under this title;
‘‘(B) providing services so assisted; and
‘‘(C) providing services for occupants of fa-
cilities so assisted.
‘‘(2) In carrying out paragraph (1), recipients
shall not displace employed workers.
‘‘(f) PARTICIPATION OF HOMELESS INDIVIDUALS.—
The Secretary shall provide that each recipient shall re-
quire each project sponsor receiving assistance under this
title from the recipient to provide for the participation of
not less than one homeless individual or formerly homeless
individual on the board of directors or other equivalent
policy making entity of the project sponsor, to the extent
that such entity considers and makes policies and decision
regarding any project, facility, services, or other activities
assisted under this title. A recipient may grant waivers
to project sponsors unable to meet the requirement under
the preceding sentence, if the project sponsor agrees to
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otherwise consult with homeless or formerly homeless indi-
viduals in considering and making such policies and deci-
sions.
‘‘(g) NONDISCRIMINATION TOWARD CERTIFICATE
AND VOUCHER HOLDERS.—In the case of multifamily
rental housing assisted under this title (except for such
housing only receiving homeless prevention assistance au-
thorized under section 404(b)(1) of this title) that is re-
ceiving, or (except for insurance referred to in paragraph
(4)) has received within two years before the effective date
of this title, the benefit of Federal assistance from an
agency of the United States, the owner shall not refuse
to lease a reasonable number of units to families under
the tenant-based assistance program under section 8 of
the United States Housing Act of 1937 because of the
status of the prospective tenants as families under the pro-
gram. The Secretary shall establish reasonable time peri-
ods for applying the requirement of this subsection, taking
into account the total amount of the assistance and the
relative share of the assistance compared to the total cost
of financing, developing, rehabilitating, or otherwise as-
sisting a project. Federal assistance for purposes of this
subsection shall mean—
(1) project-based assistance under the United
States Housing Act of 1937;
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(2) assistance under title I of the Housing and
Community Development Act of 1974;
(3) assistance under title II of the Cranston-
Gonzalez National Affordable Housing Act;
(4) mortgage insurance under the National
Housing Act;
(5) low-income housing tax credits under sec-
tion 42 of the Internal Revenue Code of 1986; and
(6) assistance under any other programs des-
ignated by the Secretary.
‘‘(h) OCCUPANCY CHARGE.—Any homeless individual
or family residing in a dwelling unit assisted under this
title may be required to pay an occupancy charge in an
amount determined by the grantee providing the assist-
ance, which may not exceed an amount equal to 30 percent
of the adjusted income (as such term is defined in section
3(b) of the United States Housing Act of 1937 or any
other subsequent provision of Federal law defining such
term for purposes of eligibility for, or rental charges in,
public housing) of the individual or family. Occupancy
charges paid may be reserved, in whole or in part, to assist
residents in moving to permanent housing.
‘‘SEC. 407. ALLOCATION AND DISTRIBUTION OF FUNDS.
‘‘(a) INSULAR AREAS.—
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‘‘(1) ALLOCATION.—For each fiscal year, the
Secretary shall allocate assistance under this title to
insular areas, in an amount equal to 0.20 percent of
the amounts appropriated under the first sentence of
section 402(b).
‘‘(2) DISTRIBUTION.—The Secretary shall pro-
vide for the distribution of amounts reserved under
paragraph (1) for insular areas pursuant to specific
criteria or a distribution formula prescribed by the
Secretary.
‘‘(b) STATES AND ALLOCATION UNITS OF GENERAL
LOCAL GOVERNMENT.—
‘‘(1) IN GENERAL.—For each fiscal year, of the
amounts appropriated under the first sentence of
section 402(b) that remain after amounts are re-
served—
‘‘(A) for insular areas under subsection
(a), and
‘‘(B) for technical assistance and other ac-
tivities under subsection (d),
the Secretary shall allocate assistance according to
the formula described in paragraph (2).
‘‘(2) FORMULA.—
‘‘(A) ALLOCATION.—The Secretary shall
allocate amounts for allocation units of general
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local government (including jurisdictions that
received a formula grant for fiscal year 1996 or
1997 under subtitle B of this title, as it existed
immediately before the effective date of the
Homelessness Assistance and Management Re-
form Act of 1997) and States, in a manner that
ensures that the percentage of the total amount
available under this title for any fiscal year for
any allocation unit of general local government
or State is equal to the percentage of the total
amount available for section 106 of the Hous-
ing and Community Development Act of 1974
for the same fiscal year that is allocated for the
allocation unit of general local government or
State.
‘‘(B) MINIMUM ALLOCATION.—
‘‘(i) ALLOCATION UNITS OF GENERAL
LOCAL GOVERNMENT.—If under subpara-
graph (A) for any fiscal year, the alloca-
tion for any allocation unit of general local
government is less than 0.05 percent of the
amounts appropriated under the first sen-
tence of section 402(b), such allocation
unit shall not receive a grant and its allo-
cation shall be added to the allocation for
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the State in which such allocation unit is
located for use under section 408(c)(1), ex-
cept that any such allocation unit that re-
ceived a grant in a previous fiscal year (in-
cluding a jurisdiction that received a for-
mula grant for fiscal year 1996 or 1997
under subtitle B of this title, as it existed
immediately before the effective date of the
Homelessness Assistance and Management
Reform Act of 1997) shall be allocated an
amount equal to 0.05 percent of the
amounts appropriated under the first sen-
tence of section 402(b).
‘‘(ii) STATES.—If under subparagraph
(A) for any fiscal year, the allocation for
any State is less than 0.2 percent of the
amounts appropriated under the first sen-
tence of section 402(b), such State shall be
allocated an amount equal to 0.2 percent
of such amounts.
‘‘(C) PRO
RATA
INCREASES
AND
DE-
CREASES.—
‘‘(i) INCREASE.—All amounts allo-
cated pursuant to the preceding subpara-
graphs for allocation units of general local
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government shall be increased on a pro
rata basis until the aggregate of such
amounts equals 75 percent of the remain-
der of amounts appropriated under this
title for each year, after amounts are allo-
cated for insular areas under subsection
(a) and for technical assistance and other
assistance under subsection (d).
‘‘(ii) DECREASE.—All amounts allo-
cated pursuant to the preceding subpara-
graphs for States shall be decreased on a
pro rata basis until the aggregate of such
amounts equals 25 percent of the remain-
der of amounts appropriated under this
title for each year, after amounts are allo-
cated for insular areas under subsection
(a) and for technical and other assistance
under subsection (d).
‘‘(3) MINIMUM
GRANT
AMOUNT.—Notwith-
standing paragraph (2), an allocation unit of general
local government shall receive no less funding under
this subsection in fiscal year 1998 than 75 percent
of the average of the amounts awarded annually to
that jurisdiction for homeless assistance programs
administered by the Secretary under this title during
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required by the preceding sentence, the Sec-
retary shall consult with the State or allocation
unit of general local government and assess the
need for assistance under this Act, taking into
account such factors as the current number of
homeless individuals, the extent of their need,
and the cost of meeting such need. The Sec-
retary shall make the initial determination for
amounts to be allocated in fiscal year 2001 and
at least every three years thereafter.
‘‘(B) AUTHORITY
TO
MAKE
TRANSFERS
AMONG APPROPRIATION ACCOUNTS.—The Sec-
retary shall transfer such amounts as are ap-
proved in accordance with this paragraph
among appropriation accounts, as appropriate.
‘‘(d) TECHNICAL AND OTHER ASSISTANCE AND MAN-
AGEMENT INFORMATION SYSTEMS.—
‘‘(1) TECHNICAL
AND
OTHER
ASSISTANCE.—
From amounts appropriated under the first sentence
of section 402(b) for any fiscal year, the Secretary
may directly or indirectly by grant, contract, or co-
operative agreement use up to $25,000,000 for—
‘‘(A) TECHNICAL ASSISTANCE.—Technical
assistance, which may include training and the
cost of necessary travel for participants in such
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training, by or to officials and employees of the
Department of Housing and Urban Develop-
ment, applicants, grantees, recipients, local and
State homeless assistance boards, State recipi-
ents, and private nonprofits to improve their
ability to carry out the provisions of this title
and to support the creation of continuum of
care systems.
‘‘(B) CAPACITY BUILDING.—Assistance to
private nonprofit organizations to build their
capacity in support of continuum of care sys-
tems.
‘‘(C) RESOURCE IDENTIFICATION.—Identi-
fication, coordination, and development of re-
sources and data for homelessness, including
determining the feasibility of specific housing-
related initiatives.
‘‘(D) PROGRAM OVERSIGHT.—Performance
reviews and audits under section 410(c), includ-
ing the cost of necessary travel.
‘‘(2) MANAGEMENT INFORMATION SYSTEMS.—
From amounts appropriated under the first sentence
of section 402(b) for any fiscal year, the Secretary
shall reserve 0.4 percent to develop, implement, and
refine management information systems in order to
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establish a national database on local needs and pri-
orities and to provide grantees and others with soft-
ware to plan and track performance under this title.
‘‘SEC. 408. ADMINISTRATION OF PROGRAM.
‘‘(a) IN GENERAL.—The Secretary shall prescribe
such procedures and requirements as the Secretary deems
appropriate for administering grant amounts under this
title.
‘‘(b) ALLOCATION UNITS OF GENERAL LOCAL GOV-
ERNMENT AND INSULAR AREAS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graphs (2) and (3), an allocation unit of general
local government or insular area shall administer
grant amounts received under section 407(a) or (b)
for any fiscal year.
‘‘(2) AGENCIES
AND
ORGANIZATIONS
DES-
IGNATED BY JURISDICTION.—
‘‘(A) DESIGNATION
OF
OTHER
ENTITIES
TO ADMINISTER GRANT AMOUNTS.—An alloca-
tion unit of general local government or insular
area may elect for any fiscal year to designate
a public agency or a private nonprofit organiza-
tion (or a collaboration of such organizations)
to administer grant amounts received under
section 407(a) or (b) instead of the jurisdiction.
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‘‘(B) PROVISION
OF
GRANT
AMOUNTS.—
The Secretary may, at the request of a jurisdic-
tion under subparagraph (A), provide grant
amounts directly to the agency or organization
designated under that subparagraph.
‘‘(3) ADMINISTRATION
OF
GRANT
BY
SEC-
RETARY OR SECRETARY’S DESIGNEE.—If an alloca-
tion unit of general local government or insular area,
or (if appropriate) a public agency or private non-
profit organization designated by the jurisdiction
under paragraph (2), does not receive a grant pursu-
ant to section 407(b)(4) for any fiscal year, the Sec-
retary shall—
‘‘(A) designate the State or a local private
nonprofit organization to administer the grant
amounts instead of the jurisdiction; or
‘‘(B) distribute the funds to private non-
profit organizations to carry out activities with-
in the jurisdiction on the basis of a competition.
‘‘(c) STATES.—
‘‘(1) IN GENERAL.—Each State shall elect ei-
ther—
‘‘(A) to administer grant amounts received
under section 407(b), as provided by para-
graphs (2) and (3); or
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‘‘(B) have the Secretary administer these
amounts instead of the State, as provided by
paragraph (4).
If a State elects to administer grant amounts under
subparagraph (A), the election shall be permanent
and final.
‘‘(2) STATE PROGRAM.—Of amounts referred to
in paragraph (1)(A), the State—
‘‘(A) may use not more than 15 percent to
carry out its own homeless assistance program
under this title; and
‘‘(B) 
shall 
distribute 
the 
remaining
amounts to State recipients.
Grants to States may only be used to carry out ac-
tivities in areas of the State outside allocation units
of general local government.
‘‘(3) DISTRIBUTION OF AMOUNTS TO STATE RE-
CIPIENTS.—
‘‘(A) IN GENERAL.—
‘‘(i) 
States 
distributing 
amounts
under paragraph (2)(B) to State recipients
that are units of general local government
shall, for each fiscal year, afford each such
recipient the options of—
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‘‘(I) 
administering 
the 
grant
amounts on its own behalf;
‘‘(II) designating (as provided by
subsection (b)(2)) a public agency or
a private nonprofit organization (or a
combination of such organizations) to
administer the grant amounts instead
of the jurisdiction; or
‘‘(III) entering into an agreement
with the State, in consultation with
private nonprofit organizations provid-
ing assistance to homeless individuals
and families in the jurisdiction, under
which the State will administer the
grant amounts instead of the jurisdic-
tion.
‘‘(ii) A State recipient designating an
agency or organization as provided by
clause (i)(II), or entering into an agree-
ment with the State under clause (i)(III),
shall remain the State recipient for pur-
poses of this title.
‘‘(iii) The State may, at the request of
the State recipient, provide grant amounts
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directly to the agency or organization des-
ignated under clause (i)(II).
‘‘(B) APPLICATION.—
‘‘(i) 
The 
State 
shall 
distribute
amounts to State recipients (or to agencies
or organizations designated under subpara-
graph (A)(i)(II), as appropriate) on the
basis of an application containing such in-
formation as the State may prescribe, ex-
cept that each application shall reflect the
State’s application requirements in section
403(d) and evidence an intent to facilitate
the establishment of a continuum of care
system prepared by the State homeless as-
sistance board.
‘‘(ii) The State may waive the require-
ments in clause (i) with respect to one or
more proposed activities, where the State
determines that—
‘‘(I) the activities are necessary
to meet the needs of homeless individ-
uals and families within the jurisdic-
tion; and
‘‘(II) a continuum of care system
is not necessary, due to the nature
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and extent of homelessness in the ju-
risdiction.
‘‘(C) PREFERENCE.—In selecting State re-
cipients and making awards under subpara-
graph (B), the State shall give preference to ap-
plications that demonstrate higher relative lev-
els of homeless need and fiscal distress.
‘‘(4) HUD ADMINISTRATION
OF
STATE
PRO-
GRAM.—
‘‘(A) IN GENERAL.—If a State elects to
have 
the 
Secretary 
administer 
its 
grant
amounts under section 407, as provided by
paragraph (1)(B), the Secretary may retain up
to 5 percent of such amounts to cover adminis-
trative expenses, and distribute the remaining
amounts in areas of the State outside allocation
units of general local government to—
‘‘(i) units of general local government
(other than allocation units of general local
government);
‘‘(ii) public agencies or private non-
profit organizations designated by such
units of general local government; or
‘‘(iii) private nonprofit organizations.
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‘‘(B) DISTRIBUTION OF FUNDS.—The Sec-
retary shall distribute amounts under this para-
graph on a competitive basis, using selection
criteria which shall include—
‘‘(i) the extent to which there is a
need for assistance for homeless individ-
uals and families in the jurisdiction;
‘‘(ii) the extent to which the proposed
activities further the establishment and
maintenance of a continuum of care sys-
tem;
‘‘(iii) the extent to which private non-
profit organizations providing assistance to
homeless individuals and facilities in the
jurisdiction have been, and will be, in-
cluded in planning for the receipt of assist-
ance under this title, and the execution of
the proposed activities;
‘‘(iv) the capacity of the entity apply-
ing for a grant under this subsection to de-
velop and operate a project;
‘‘(v) the need for the type of project
proposed by the entity applying for a grant
under this subsection in the area to be
served;
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‘‘(vi) the extent to which the amount
of assistance to be provided under this title
will be supplemented with resources from
other public and private sources;
‘‘(vii) the extent to which the entity
applying for a grant under this subsection
has demonstrated coordination with Fed-
eral, State, local, private, and other enti-
ties serving homeless individuals in the
planning and operation of the project; and
‘‘(viii) such other criteria as the Sec-
retary deems appropriate to further the
purposes of this paragraph and this title.
‘‘SEC. 409. CITIZEN PARTICIPATION.
‘‘(a) IN GENERAL.—Each recipient shall ensure that
citizens, appropriate private nonprofit organizations, and
other interested groups and entities participate fully in the
development and carrying out of the program authorized
under this title. The Secretary shall prescribe such re-
quirements to carry out this section as the Secretary
deems appropriate, which shall include requirements appli-
cable to the citizen participation provisions of subsection
(b), the local homeless assistance board referred to in sub-
section (c), and the requirements for homeless assistance
boards for States and State recipients under subsection
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(d), and the timing of, and sequence for, carrying out the
requirements of those subsections.
‘‘(b) SPECIFIC REQUIREMENTS FOR THE INVOLVE-
MENT OF CITIZENS AND OTHERS.—
‘‘(1) ENTITIES THAT ARE GOVERNMENTAL JU-
RISDICTIONS.—Each recipient that is a govern-
mental jurisdiction shall comply with the citizen par-
ticipation requirements established by the Secretary
with respect to the consolidated plan.
‘‘(2) ENTITIES THAT ARE NOT GOVERNMENTAL
JURISDICTIONS.—For applicants or grantees (as ap-
propriate) that are not governmental jurisdictions,
the Secretary shall prescribe citizen participation re-
quirements that are comparable (to the extent ap-
propriate) to those required by paragraph (1).
‘‘(c) LOCAL HOMELESS ASSISTANCE BOARD FOR AL-
LOCATION UNITS OF GENERAL LOCAL GOVERNMENT AND
INSULAR AREAS.—
‘‘(1) ESTABLISHMENT
AND
FUNCTION.—The
chief executive officer of each allocation unit of gen-
eral local government or insular area shall establish,
select, and support a local homeless assistance
board, which shall assist the jurisdiction—
‘‘(A) by developing the continuum of care
system and other submission requirements, and
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by submitting the system and such other sub-
mission requirements for its approval under sec-
tion 403(b);
‘‘(B) in overseeing the activities carried
out with assistance under this title; and
‘‘(C) in preparing the performance report
under section 410(b).
‘‘(2) COMPOSITION OF BOARD.—The composi-
tion of each local homeless assistance board shall be
as follows—
‘‘(A) MAJORITY OF BOARD.—Not less than
51 percent of the members of the local homeless
assistance board shall represent the following—
‘‘(i) homeless individuals and families;
‘‘(ii) homeless advocates that meet
such minimum standards of advocacy as
the Secretary shall prescribe; and
‘‘(iii) individuals and entities provid-
ing assistance to homeless individuals and
families.
‘‘(B) REMAINDER
OF
BOARD.—The re-
mainder of the local homeless assistance board
shall represent the following—
‘‘(i) business and labor;
‘‘(ii) neighborhood advocates; and
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‘‘(iii) government officials.
‘‘(3) NOMINATION AND SELECTION OF BOARD
MEMBERS.—
‘‘(A) NOMINATION OF BOARD MEMBERS.—
The membership of each local homeless assist-
ance board meeting the criteria in paragraph
(2)(A) shall have been nominated by individuals
and entities, other than a governmental juris-
diction, that represent these groups.
‘‘(B) SELECTION OF BOARD MEMBERS.—
In selecting a local homeless assistance board,
the chief executive officer of the jurisdiction
shall, to the maximum extent practicable, select
members who will improve access to a broad
range of services for homeless individuals and
families and who are sensitive to the varying
needs of homeless individuals and families.
Each local homeless assistance board shall in-
clude members who, to the maximum extent
practicable and consistent with local needs, rep-
resent the different homeless subpopulations in
that community.
‘‘(4) WAIVER BY SECRETARY.—The Secretary
may waive the requirements of paragraphs (2) and
(3), if the jurisdiction has an existing local homeless
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assistance board that substantially meets the re-
quirements of such paragraphs.
‘‘(5) REVIEW BY SECRETARY.—A member or
members of a local homeless assistance board, or
other members of the community, may request the
Secretary to review the process for constituting or
operating the local homeless assistance board to de-
termine whether the process is fair. If the Secretary
finds that the process is unfair and promptly sub-
mits a written justification to the board, the Sec-
retary may disapprove the application under section
403 for the jurisdiction.
‘‘(6) CONFLICTS OF INTEREST.—The Secretary
shall prescribe standards governing potential con-
flicts of interest under which members of local home-
less assistance boards under this subsection may
participate in activities carried out under this title.
‘‘(d) HOMELESS ASSISTANCE BOARDS FOR STATES
AND STATE RECIPIENTS.—
‘‘(1) STATE HOMELESS ASSISTANCE BOARD.—
‘‘(A) ESTABLISHMENT AND FUNCTION.—
The chief executive officer of the State shall es-
tablish, select, and support a State homeless as-
sistance board, which shall assist the State—
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‘‘(i) by developing the continuum of
care system and other submission require-
ments, and by submitting the system and
such other submission requirements for its
approval under section 403(b);
‘‘(ii) in determining the percentage of
the grant that the State should use—
‘‘(I) to carry out its own home-
less assistance program under section
408(c)(2)(A); or
‘‘(II) to distribute amounts to
State 
recipients 
under 
section
408(c)(2)(B);
‘‘(iii) in carrying out the State’s re-
sponsibilities where—
‘‘(I) the Secretary designates the
State to administer grant amounts
under section 408(b)(3)(A); or
‘‘(II) the State enters into an
agreement with a State recipient to
administer 
the 
State 
recipient’s
amounts 
under 
section
408(c)(3)(A)(i)(III);
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‘‘(iv) in overseeing the activities car-
ried out with assistance under this title;
and
‘‘(v) in preparing the performance re-
port under section 410(b).
‘‘(B) 
OTHER
REQUIREMENTS.—State
homeless assistance boards shall be subject to
subsections (c)(2) through (6).
‘‘(2) STATE RECIPIENTS.—State recipients shall
establish, select, and support a local homeless assist-
ance board comparable (to the extent appropriate) to
that described in subsection (c), or may use such
other community consultation process as the Sec-
retary shall prescribe.
‘‘(e) LOCAL HOMELESS ASSISTANCE BOARD WHERE
SECRETARY IS DISTRIBUTING GRANT AMOUNTS.—
‘‘(1) IN GENERAL.—If the Secretary designates
a State or a private nonprofit organization to admin-
ister grant amounts under section 408(b)(3)(A), dis-
tributes grant amounts to a private nonprofit orga-
nization (as provided by section 408(b)(3)(B)), or
distributes grant amounts instead of a State under
section 408(c)(4), the Secretary shall—
‘‘(A) designate a State or unit of general
local government to establish, select, and sup-
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port a local homeless assistance board meeting
the requirements of subsection (c); or
‘‘(B) enter into a partnership with another
entity to establish, select, and support the local
homeless assistance board.
‘‘(2) LAWS INAPPLICABLE.—Section 103 of the
Department of Housing and Urban Development
Reform Act of 1989 shall not apply with respect to
the actions of the Secretary referred to in paragraph
(1). The Secretary shall establish appropriate stand-
ards under this paragraph to ensure the integrity of
the process for awarding assistance.
‘‘(f) AUTHORITY
OF SECRETARY.—The Secretary
shall establish such procedures as the Secretary deems ap-
propriate for providing a fair hearing and timely resolu-
tion of citizen complaints related to applications or per-
formance reports under this title.
‘‘SEC. 410. PERFORMANCE REPORTS, REVIEWS, AUDITS,
AND GRANT ADJUSTMENTS.
‘‘(a) NATIONAL
PERFORMANCE
MEASURES
AND
BENCHMARKS.—The Secretary shall establish national
performance measures and benchmarks to assist the Sec-
retary, grantees, citizens, and others in assessing the use
of funds made available under this title.
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‘‘(b) GRANTEE PERFORMANCE
AND EVALUATION
REPORT.—Each grantee shall submit to the Secretary a
performance and evaluation report prepared by the local
homeless assistance board under section 409(c) or (e), or
the State homeless assistance board under section 409(d),
as appropriate, concerning the use of funds made available
under this title. The grantee may modify the report. If
the grantee has made changes to the report, the submis-
sion shall also include the comments of the local homeless
assistance board or State homeless assistance board on the
changes. The report shall be submitted at such time as
the Secretary shall prescribe and contain an assessment
of the performance of the grantee as measured against
any specific performance measures and benchmarks (de-
veloped under section 403), the national performance
measures and benchmarks (as established under sub-
section (a)), and such other information as the Secretary
shall prescribe. The grantee shall make the report avail-
able to citizens, public agencies, and other interested par-
ties in the jurisdiction of the grantee in sufficient time
to permit them to comment on the report before its sub-
mission.
‘‘(c) PERFORMANCE REVIEWS, AUDITS, AND GRANT
ADJUSTMENTS.—
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‘‘(1) PERFORMANCE REVIEWS AND AUDITS.—
The Secretary shall, not less than annually, make
such reviews and audits as may be necessary or ap-
propriate to determine—
‘‘(A) in the case of a grantee (other than
a grantee referred to in subparagraph (B)),
whether the grantee—
‘‘(i) has carried out its activities in a
timely manner;
‘‘(ii) has made progress toward imple-
menting the continuum of care system in
conformity with its application under this
title; and
‘‘(iii) has carried out its activities and
certifications in accordance with the re-
quirements of this title and other applica-
ble laws; and
‘‘(B) in the case of States distributing
grant amounts to State recipients, whether the
State—
‘‘(i) has distributed amounts to State
recipients in a timely manner and in con-
formance with the method of distribution
described in its application;
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‘‘(ii) has carried out its activities and
certifications in compliance with the re-
quirements of this title and other applica-
ble laws; and
‘‘(iii) has made such performance re-
views and audits of the State recipients as
may be necessary or appropriate to deter-
mine whether they have satisfied the appli-
cable performance criteria contained in
subparagraph (A).
‘‘(2) GRANT ADJUSTMENTS.—Pursuant to sec-
tion 407(b)(4), the Secretary may make appropriate
adjustments in the amount of grants in accordance
with the Secretary’s findings under this subsection.
With respect to assistance made available for State
recipients, the Secretary may adjust, reduce, or
withdraw such assistance, or take other action as
appropriate in accordance with the Secretary’s per-
formance reviews and audits under this subsection,
except that amounts already properly expended on
eligible activities under this title shall not be recap-
tured or deducted from future assistance to such re-
cipients.
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‘‘SEC. 411. NONDISCRIMINATION IN PROGRAMS AND AC-
TIVITIES.
No person in the United States shall, on the ground
of race, color, national origin, religion, or sex, be excluded
from participation in, be denied the benefits of, or be sub-
jected to discrimination under any program or activity
funded in whole or in part with funds made available
under this title. Any prohibition against discrimination on
the basis of age under the Age Discrimination Act of 1975
or with respect to an otherwise qualified individual with
a disability, as provided in section 504 of the Rehabilita-
tion Act of 1973, shall also apply to any such program
or activity.
‘‘SEC. 412. ENVIRONMENTAL PROTECTION.
‘‘(a) PURPOSE.—The purpose of this section is to au-
thorize a procedure for the assumption of environmental
review responsibilities of the Secretary by States, units of
general local government, and insular areas in connection
with assistance provided under this title. This procedure
shall be designed to ensure—
‘‘(1) that the policies of the National Environ-
mental Policy Act of 1969 and other provisions of
law which further the purposes of such Act (as spec-
ified by the Secretary) are most effectively imple-
mented in connection with the provision of such as-
sistance; and
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‘‘(2) undiminished protection of the environ-
ment to the public.
‘‘(b) BASIC AUTHORITY.—The Secretary may, in lieu
of the environmental protection procedures otherwise ap-
plicable and in accordance with the provisions of this sec-
tion, provide for the release of funds for particular
projects or activities upon the request of a recipient of the
assistance—
‘‘(1) if the recipient—
‘‘(A) is a State, unit of general local gov-
ernment, or insular area; and
‘‘(B) assumes all of the responsibilities for
environmental review, decisionmaking, and ac-
tion pursuant to the Act and the other provi-
sions of law referred to in subsection (a) that
would otherwise apply to the Secretary in con-
nection with the provision of assistance to such
projects or activities; or
‘‘(2) in the case of other recipients, if the State,
unit of general local government, or insular area, as
designated by the Secretary, assumes all of the re-
sponsibilities in accordance with paragraph (1)(B).
‘‘(c) PROCEDURE.—The Secretary shall approve the
release of funds for projects or activities subject to the
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procedures authorized by this section only if the recipient
submits to the Secretary a request for such release—
‘‘(1) not less than 15 days before such release,
except that this paragraph shall not apply in the
case of a project or activity proposed in an area cov-
ered by a declaration by the President of a major
disaster or emergency under the Robert T. Stafford
Disaster Relief and Emergency Assistance Act; and
‘‘(2) before any commitment of funds or other
assistance for such projects (other than for environ-
mental studies and such other purposes as the Sec-
retary shall specify, consistent with the Act and the
other provisions of law referred to in subsection (a)).
The request for release shall be accompanied by a certifi-
cation by the State, unit of general local government, or
insular area which meets the requirements of subsection
(e). The Secretary’s approval of any such certification
shall be deemed to satisfy the Secretary’s responsibilities
under the Act and the other provisions of law referred to
in subsection (a), insofar as those responsibilities relate
to the provision of assistance for projects to be carried
out pursuant thereto which are covered by the certifi-
cation.
‘‘(d) CERTIFICATION.—A certification under the pro-
cedures authorized by this section shall—
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‘‘(1) be in a form acceptable to the Secretary;
‘‘(2) be executed by the chief executive officer
or other officer of the State, unit of general local
government, or insular area who qualifies as deter-
mined by the Secretary;
‘‘(3) specify that the State, unit of general local
government, or insular area has fully carried out its
responsibilities, as described in subsection (b); and
‘‘(4) specify that the certifying officer—
‘‘(A) consents to assume the status of a re-
sponsible Federal official under the Act and the
other provisions of law referred to in subsection
(a), insofar as the provisions of the Act or the
other provisions of law apply pursuant to sub-
section (a); and
‘‘(B) is authorized and consents on behalf
of the State, unit of general local government,
or insular area and himself or herself to accept
the jurisdiction of the Federal courts for the
purpose of enforcement of the responsibilities as
such an official.
‘‘(e) APPROVAL BY STATES.—If a unit of general
local government carries out the responsibilities described
in subsection (d), the Secretary may permit the State (or,
where the assistance is provided through the State, the
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Secretary may require the State) to perform those actions
of the Secretary described in subsection (c). The perform-
ance of such actions by the State, where permitted or re-
quired by the Secretary, shall be deemed to satisfy the
Secretary’s responsibilities referred to in the last sentence
of subsection (c).
‘‘(f) IMPLEMENTATION.—
‘‘(1) The Secretary shall implement this section
after consultation with the Council on Environ-
mental Quality. The implementation shall include
provision—
‘‘(A) for monitoring of the performance of
environmental reviews under this section;
‘‘(B) in the discretion of the Secretary, for
the provision or facilitation of training for such
performance;
‘‘(C) subject to the discretion of the Sec-
retary, for suspension or termination by the
Secretary of the assumption under paragraph
(1); and
‘‘(D) in the discretion of the Secretary, for
the imposition of appropriate sanctions for fail-
ure to comply with responsibilities assumed
under this section, including the denial, with-
drawal, reduction, or abatement of assistance.
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‘‘(2) The Secretary’s duty under subparagraph
(A) shall not be construed to limit or reduce any re-
sponsibility assumed by a State, unit of general local
government, or insular area with respect to any par-
ticular project under this section.
‘‘SEC. 413. CONSULTATION.
‘‘In carrying out the provisions of this title, including
their implementation, the Secretary shall consult with
other Federal departments and agencies administering
programs affecting homeless individuals and families.
‘‘SEC. 414. RETENTION OF RECORDS, REPORTS, AND AU-
DITS.
‘‘(a) RETENTION OF RECORDS.—Each recipient shall
keep such records as may be reasonably necessary—
‘‘(1) to disclose the amounts and the disposition
of the grant amounts, including the types of activi-
ties funded and the nature of populations served
with these funds; and
‘‘(2) to ensure compliance with the require-
ments of this title.
‘‘(b) ACCESS TO DOCUMENTS BY THE SECRETARY.—
The Secretary shall have access for the purpose of audit
and examination to any books, documents, papers, and
records of any recipient that are pertinent to grant
amounts received in connection with this title.
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‘‘(c) ACCESS TO DOCUMENTS BY THE COMPTROLLER
GENERAL.—The Comptroller General of the United
States, or any duly authorized representative of the Comp-
troller General, shall have access for the purpose of audit
and examination to any books, documents, papers, and
records of any recipient that are pertinent to grant
amounts received in connection with this title.’’.
SEC. 4. REPEAL AND SAVINGS PROVISIONS.
(a) TITLE IV BEFORE AMENDMENT BY THIS ACT.—
(1) IN GENERAL.—The amendments made by
this Act to title IV of the Stewart B. McKinney
Homeless Assistance Act shall be effective upon en-
actment.
(2) AUTHORITY TO PROVIDE ASSISTANCE.—On
and after the effective date of this Act, the Secretary
may not make assistance available under title IV (as
it existed before such effective date), except pursu-
ant to a legally binding commitment entered into be-
fore that date.
(3) LAW
GOVERNING.—Any amounts made
available under title IV before the effective date of
this Act shall continue to be governed by the provi-
sions of that title, as they existed immediately before
that date, except that each grantee may, in its dis-
cretion, provide for the use, in accordance with the
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provisions of title IV (as amended by this Act), of
any such amounts that it has not obligated.
(4) STATUS OF FUNDS.—Any amounts appro-
priated under title IV before the effective date of
this Act that are available for obligation immediately
before such effective date, or that become available
for obligation on or after that date, shall be trans-
ferred and added to amounts appropriated for title
IV (as amended by this Act), and shall be available
for use in accordance with the provisions of such
title IV. Any amounts so transferred shall remain
available for obligation only for the time periods for
which such respective amounts were available before
such transfer.
(b) INNOVATIVE
HOMELESS
INITIATIVES
DEM-
ONSTRATION.—
(1) IN GENERAL.—Section 2 of the HUD Dem-
onstration Act of 1993 is hereby repealed.
(2) AUTHORITY TO PROVIDE ASSISTANCE.—On
and after the effective date of this Act, the Secretary
may not make assistance available under section 2
(as it existed immediately before such effective date),
except pursuant to a legally binding commitment en-
tered into before that date.
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(3) LAW
GOVERNING.—Any amounts made
available under section 2 before the effective date of
this Act shall continue to be governed by the provi-
sions of that section, as they existed immediately be-
fore that date, except that each grantee may, in its
discretion, provide for the use, in accordance with
the provisions of title IV (as amended by this Act),
of any such amounts that it has not obligated.
(4) STATUS OF FUNDS.—Any amounts appro-
priated under section 2 before the effective date of
this Act that are available for obligation immediately
before such date, or that become available for obliga-
tion on or after that date, shall be transferred and
added to amounts appropriated for title IV (as
amended by this Act), and shall be available for use
in accordance with the provisions of such title IV.
Any amounts so transferred shall remain available
for obligation only for the time periods for which
such respective amounts were available before such
transfer.
SEC. 5. IMPLEMENTATION.
(a) INITIAL ALLOCATION OF ASSISTANCE.—Not later
than the expiration of the 60-day period following the date
of enactment of a law appropriating funds to carry out
title IV (as amended by this Act), the Secretary shall no-
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tify each allocation unit of general local government, insu-
lar area, and State of its allocation under the Homeless
Assistance Performance Fund.
(b) ISSUANCE OF NECESSARY REGULATIONS.—Not-
withstanding 42 U.S.C. 3535(o) or 24 CFR part 10, the
Secretary shall issue such regulations as may be necessary
to implement any provision of title I of this Act, and any
amendment made by title I of this Act, in accordance with
section 552 or 553 of title 5, United States Code, as deter-
mined by the Secretary.
(c) USE OF EXISTING RULES.—In implementing any
provision of title I of this Act, the Secretary may, in the
Secretary’s discretion, provide for the use of existing rules
to the extent appropriate, without the need for further
rulemaking.
SEC. 6. REPORT AND ALLOCATION METHOD.
(a) REPORT.—Within two years of enactment of this
Act, the Secretary shall submit a report to Congress. The
report shall include—
(1) an assessment of the progress of establish-
ing continuum of care systems for homeless individ-
uals under title IV of the Stewart B. McKinney
Homeless Assistance Act (as amended by this Act);
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(2) any recommendations for amendments to
the program structure under such title IV to better
serve homeless individuals;
(3) an analysis of the best available methodolo-
gies for measuring the geographic distribution of
homelessness; and
(4) one or more options for a method for allo-
cating assistance under section 407(b) of such title
IV.
(b) ALLOCATION METHOD.—Not less than 90 days
after submission of the report to Congress, the Secretary
shall publish a proposed rule in the Federal Register set-
ting forth a method for allocating assistance that shall
take into account the findings in the report, and such
other factors as the Secretary determines to be relevant.
The final rule shall take effect not less than nine months
after the date that the proposed rule is published.
(c) SUPERSEDE
ALLOCATION
METHOD
UNDER
TITLE IV.—The authority for the method for allocating
assistance established by final rule under subsection (b),
and any subsequent amendments to such rule, shall upon
promulgation, be the authority for the allocation method,
in lieu of the method set forth under section 407(b) of
such title IV.