such units have satisfied the applicable cri-
teria described in subparagraph (A).
‘‘(4) ADJUSTMENT.—The Secretary may adjust,
reduce, or withdraw assistance made available under
this subtitle to a grantee or take other action as ap-
propriate in accordance with the Secretary’s reviews
and audits under this subsection, except that
amounts already expended on eligible activities
under this subtitle may not be recaptured or de-
ducted from future assistance.
‘‘(g) SITE CONTROL.—Each grantee or project spon-
sor shall furnish reasonable assurances, as the Secretary
shall require, that it will own or control a site for a pro-
posed project not later than 12 months after notification
of an award for grant assistance. A suitable site different
from the site specified in the application shall satisfy the
requirement of this subsection. If ownership or control of
a site is not obtained within 2 years after notification of
an award for grant assistance, the grant shall be recap-
tured and reallocated.
‘‘(h) PREVENTION OF UNDUE BENEFITS.—The Sec-
retary may prescribe any terms and conditions necessary
to prevent project sponsors from unduly benefiting from
the sale or other disposition of projects constructed, reha-
bilitated, or acquired with assistance under this subtitle
other than a sale or other disposition resulting in the use
of the project for the direct benefit of very low-income per-
sons.
‘‘(i) ADDITIONAL REQUIREMENTS.—The Secretary
may establish any other requirements as the Secretary de-
termines are necessary for grantees to administer activi-
ties authorized under this subtitle in an efficient manner.
‘‘SEC. 406. ADMINISTRATIVE PROVISIONS.
‘‘(a) LIMITATION ON ADMINISTRATIVE EXPENSES.—
A grantee may not use more than 10 percent of the assist-
ance received by the grantee under this subtitle for admin-
istrative purposes.
‘‘(b) INCOME ELIGIBILITY.—A homeless person shall
be eligible for assistance under any program under this
subtitle only if the person is a very low-income person.
‘‘(c) FLOOD ELEVATION REQUIREMENTS.—Flood
protection standards applicable to housing acquired, reha-
bilitated, or assisted under this subtitle shall be no more
restrictive than the standards applicable to any other pro-
gram administered by the Secretary.
‘‘(d) ENVIRONMENTAL
PROTECTION.—The provi-
sions of and regulations and procedures applicable under
section 104(g) of the Housing and Community Develop-
ment Act of 1974 shall apply to assistance and projects
under this subtitle.
‘‘(e) GAO AUDITS.—Insofar as they relate to
amounts provided under this subtitle, the financial trans-
actions of recipients of such amounts may be audited by
the General Accounting Office under such rules and regu-
lations as may be prescribed by the Comptroller General
of the United States. The representatives of the General
Accounting Office shall have access to all books, accounts,
records, reports, files, and other papers, things, or prop-
erty belonging to, or in use by, such recipients pertaining
to the financial transactions and necessary to facilitate the
audit.
‘‘SEC. 407. REPORTS TO CONGRESS.
‘‘For each fiscal year for which the Secretary makes
grants under this subtitle, the Secretary shall submit to
the Congress a report summarizing the activities carried
out under this subtitle and setting forth the findings, con-
clusions, and recommendations of the Secretary as a result
of the activities. The report shall summarize and assess
the results of any reports required under section 405(f),
provide information on the activities funded under this
subtitle, and assess whether there is a continuing need for
assistance under this subtitle. The report for a fiscal year
shall be submitted not later than 3 months after the end
of the fiscal year.
‘‘SEC. 408. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to carry out
this subtitle $380,000,000 for fiscal year 1995, and
$385,000,000 for fiscal year 1996. Any amounts appro-
priated under this section shall remain available until ex-
pended.
‘‘CHAPTER 2—APPROVED ACTIVITIES
‘‘SEC. 421. HOMELESSNESS PREVENTION.
‘‘(a) REQUIREMENTS FOR ASSISTANCE.—Assistance
may be provided under this section only to very low-income
persons and families who have received eviction notices or
notices of termination of utility services and who—
‘‘(1) are unable to make the required payments
due to a sudden reduction in income;
‘‘(2) need such assistance to avoid the eviction
or termination of services; and
‘‘(3) have a reasonable prospect of being able to
resume payments within a reasonable period of time.
Assistance under this section may not be used to supplant
funding for preexisting homelessness prevention activities
from other sources.
‘‘(b) ELIGIBLE ACTIVITIES.—Assistance under this
section may only be used for activities designed to help
persons and families described in subsection (a) avoid be-
coming homeless, which shall include assistance for mak-
ing mortgage payments, rental payments, and utility pay-
ments and any activities other than activities that the Sec-
retary has found to be inconsistent with the purposes of
this Act.
‘‘SEC. 422. EMERGENCY SHELTER.
‘‘(a) DEFINITION.—The provision of emergency shel-
ter under this section may only include—
‘‘(1) the renovation, major rehabilitation, or
conversion of a building or buildings to be used as
emergency shelters;
‘‘(2) the provision of supportive services, if such
services do not supplant any services provided by the
local government during any part of the 12-month
period ending on the date of the commencement of
the operation of the emergency shelter; and
‘‘(3) maintenance, operation (other than staff),
insurance, utilities, and furnishings for such build-
ings.
‘‘(b) PROGRAM REQUIREMENTS.—A grantee may use
assistance provided under this subtitle for an emergency
shelter project under this section only if the project spon-
sor has agreed that it will—
‘‘(1) in the case of assistance involving major
rehabilitation or conversion of a building, maintain
the building as a shelter for homeless individuals
and families for not less than a 10-year period un-
less, within such 10-year period, the need for main-
taining the building as a full-time shelter ceases to
exist and the building is used for the remainder of
such period to carry out other eligible activities
under this subtitle;
‘‘(2) in the case of assistance involving rehabili-
tation (other than major rehabilitation or conversion
of a building), maintain the building as a shelter for
homeless individuals and families for not less than
a 3-year period; or
‘‘(3) in the case of assistance involving only ac-
tivities described in paragraphs (2) and (3) of sub-
section (a), provide services or shelter to homeless
individuals and families at the original site or struc-
ture or other sites or structures serving the same
general population for the period during which such
assistance is provided.
‘‘(c) MATCHING AMOUNTS.—A grantee may use as-
sistance provided under this subtitle for an emergency
shelter project under this section only if the project spon-
sor supplements such assistance with an equal amount of
funds from sources other than this subtitle. Each project
sponsor shall certify to the grantee its compliance with
this subsection, and shall include with such certification
a description of the sources and amounts of such supple-
mental funds. For purposes of this subsection, supple-
mental amounts may include any amounts described in the
last sentence of section 405(a).
‘‘SEC. 423. SUPPORTIVE HOUSING FOR THE HOMELESS.
‘‘(a) SUPPORTIVE HOUSING.—Housing for homeless
individuals shall be considered to be supportive housing
for purposes of this subtitle if—
‘‘(1) the housing is safe and sanitary and meets
any applicable State and local housing codes and li-
censing requirements in the jurisdiction in which the
housing is located;
‘‘(2) the housing is—
‘‘(A) transitional housing;
‘‘(B) permanent housing for homeless per-
sons with disabilities; or
‘‘(C) a particularly innovative project for,
or alternative methods of, meeting the imme-
diate and long-term needs of homeless individ-
uals and families (or is part of such a project);
and
‘‘(3) supportive services are provided in connec-
tion with the housing to address the special needs of
homeless individuals intended to be served by the
housing.
‘‘(b) TRANSITIONAL HOUSING.—
‘‘(1) DEFINITION.—For purposes of this sec-
tion, the term ‘transitional housing’ means housing,
the purpose of which is to facilitate the movement
of homeless individuals and families to permanent
housing within 24 months or such longer period as
the Secretary determines necessary.
‘‘(2) RULE REGARDING DENIAL OF ASSISTANCE
BASED ON PROLONGED OCCUPANCY OF HOMELESS
FAMILIES.—The Secretary may prohibit the provi-
sion of assistance under this section for a supportive
housing project intended to be used as transitional
housing based on a determination that the project
does not comply with the provisions of paragraph (1)
only if the Secretary determines that a substantial
number of homeless individuals or families have re-
mained in the housing longer than the period re-
ferred to in such paragraph.
‘‘(c) PERMANENT HOUSING FOR HOMELESS PER-
SONS WITH DISABILITIES.—For purposes of this section,
the term ‘permanent housing for homeless persons with
disabilities’ means community-based housing for homeless
persons with disabilities that—
‘‘(1) is a home designed solely for housing
homeless persons with disabilities or dwelling units
in a multifamily housing project, condominium
project, or cooperative project;
‘‘(2) in the case of a home, is located on a site
that does not contain another home used for the
same purposes and that is not contiguous to another
site containing a home used for the same purposes;
and
‘‘(3) provides long-term housing and supportive
services for not more than—
‘‘(A) 8 such persons in a single structure
or contiguous structures;
‘‘(B) 16 such persons, but only if not more
than 20 percent of the units in a structure are
designated for such persons; or
‘‘(C) more than 16 persons if the applicant
demonstrates that local market conditions dic-
tate the development of a large project and
such development will achieve the neighborhood
integration objectives of the program within the
context of the affected community.
‘‘(d) TYPES OF ASSISTANCE.—A grantee may provide
assistance under this section to a project sponsor of sup-
portive housing only in the following manners:
‘‘(1) ACQUISITION AND REHABILITATION.—As-
sistance may be provided in the form of an advance
in an amount not exceeding cost of acquisition, sub-
stantial rehabilitation, or acquisition and rehabilita-
tion of an existing structure for use as supportive
housing. The repayment of any outstanding debt
owed on a loan made to purchase an existing struc-
ture shall be considered to be a cost of acquisition
eligible for an advance under this paragraph if the
structure was not used as supportive housing before
the receipt of assistance.
‘‘(2) MODERATE REHABILITATION.—Assistance
may be provided in the form of a grant for moderate
rehabilitation of an existing structure for use as sup-
portive housing. Assistance under this paragraph
shall not preclude assistance under paragraph (1).
‘‘(3) OPERATING
COSTS.—Assistance may be
provided in the form of annual payments for operat-
ing costs of supportive housing (including supportive
housing that is newly constructed with assistance
provided from sources other than this subtitle) in an
amount not exceeding 75 percent of the annual oper-
ating costs of such housing.
‘‘(4) TECHNICAL
ASSISTANCE.—Technical as-
sistance may be provided in—
‘‘(A) establishing supportive housing in an
existing structure;
‘‘(B) operating supportive housing in exist-
ing structures and in structures that are newly
constructed with assistance provided from
sources other than this subtitle; and
‘‘(C) providing supportive services to the
residents of supportive housing (including sup-
portive housing that is newly constructed with
assistance provided from sources other than
this subtitle).
‘‘(5) EMPLOYMENT
ASSISTANCE
PROGRAM.—
Assistance may be provided in the form of a grant
for establishing and operating an employment assist-
ance program for the residents of supportive hous-
ing, which shall include—
‘‘(A) employment of residents in the oper-
ation and maintenance of the housing; and
‘‘(B) the payment of the transportation
costs of residents to places of employment.
‘‘(6) SUPPORTIVE SERVICES.—Assistance may
be provided in the form of a grant for costs of sup-
portive services provided to homeless individuals.
Any project sponsor, including program recipients
under title IV of this Act before the date of the en-
actment of the Stewart B. McKinney Homeless As-
sistance and Prevention Formula Grant Amend-
ments Act of 1994, may reapply for such assistance
or for the renewal of such assistance to continue
services funded under prior grants or to provide
other services.
‘‘(e) PROGRAM REQUIREMENTS.—
‘‘(1) REQUIRED AGREEMENTS.—A grantee may
use assistance provided under this subtitle for a sup-
portive housing project under this section only if the
project sponsor has agreed—
‘‘(A) to operate the proposed project as
supportive housing for not less than 10 years;
‘‘(B) to conduct an ongoing assessment of
the supportive services required by the residents
of the project;
‘‘(C) to provide such residential supervision
as the Secretary determines is necessary to fa-
cilitate the adequate provision of supportive
services to the residents of the project; and
‘‘(D) to comply with such other terms and
conditions as the Secretary or grantee may es-
tablish for purposes of carrying out this pro-
gram in an effective and efficient manner.
‘‘(2) OCCUPANT CHARGE.—Each homeless indi-
vidual or family residing in a project assisted under
this section that provides supportive housing may be
required to pay an occupancy charge in an amount
determined by the recipient providing the project,
which may not exceed the amount determined under
section 3(a) of the United States Housing Act of
1937. Occupancy charges paid may be reserved, in
whole or in part, to assist residents in moving to
permanent housing.
‘‘(f) MATCHING AMOUNTS.—A grantee may use as-
sistance provided under this subtitle for a supportive hous-
ing project under this section only if the project sponsor
supplements such assistance with—
‘‘(1) in the case of amounts used for activities
under paragraph (1), (2) or (3) of subsection (d) for
a supportive housing project, an equal amount of
funds from sources other than this subtitle; and
‘‘(2) in the case of amounts used for activities
under paragraph (4), (5), or (6) of subsection (d)
for a supportive housing project, an amount equal to
25 percent of the amount provided under this sub-
title for the project.
Each project sponsor shall certify to the grantee its com-
pliance with this subsection, and shall include with such
certification a description of the sources and amounts of
such supplemental funds. For purposes of this subsection,
supplemental amounts may include any amounts described
in the last sentence of section 405(a).
‘‘(g) SINGLE ROOM OCCUPANCY DWELLINGS.—A
project assisted under this section may provide supportive
housing or supportive services in dwelling units that do
not contain bathrooms or kitchen facilities and are appro-
priate for use as supportive housing or in projects contain-
ing some or all such dwelling units.
‘‘(h) STATE PARTICIPATION.—Each grantee provid-
ing assistance to a project under this section shall trans-
mit to the Secretary a letter of participation from the
State assuring that the State will promptly transmit as-
sistance to the project sponsor and will facilitate the provi-
sion of necessary supportive services to the residents of
the project.
‘‘SEC. 424. DEVELOPMENT OF ADDITIONAL APPROVED AC-
TIVITIES.
‘‘The Secretary, in cooperation with grantees and
other appropriate parties, shall develop additional ap-
proved activities to carry out the purposes of this sub-
title.’’.
(b) REGULATIONS.—Not later than 60 days after the
date of the enactment of this Act, the Secretary of Hous-
ing and Urban Development shall by notice establish any
requirements necessary to carry out the amendments
made by this section. Based on such notice, the Secretary
shall issue regulations to carry out the amendments made
by this section not later than 12 months after the date
of the enactment of this Act.
SEC. 202. TRANSITION PROVISIONS.
Notwithstanding section 403(a) of the Stewart B.
McKinney Homeless Assistance Act (as amended by sec-
tion 201(a) of this Act), during the 1-year period begin-
ning on the date of the enactment of this Act, the Sec-
retary of Housing and Urban Development may allocate
homeless assistance made available under the Stewart B.
McKinney Homeless Assistance Act in accordance with
the regulations for such Act in effect immediately before
the enactment of this Act, to the extent determined by
the Secretary to be necessary to provide for the orderly
transition to the regulations issued pursuant to section
201(b).
SEC. 203. CONFORMING AMENDMENTS.
(a) REDESIGNATION.—Title IV of the Stewart B.
McKinney Homeless Assistance Act (42 U.S.C. 11361 et
seq.) is amended by redesignating subtitles D, E, F, and
G as subtitles B, C, D, and E, respectively.
(b) PROGRAM REQUIREMENTS FOR SAFE HAVENS
DEMONSTRATION.—Section 434(a)(4)(E) of the Stewart
B. McKinney Homeless Assistance Act (42 U.S.C.
11394(a)(4)(E)) is amended by striking ‘‘subtitle F’’ and
inserting ‘‘subtitle D’’.
(c) TABLE OF CONTENTS.—The table of contents in
section 101(b) of the Stewart B. McKinney Homeless As-
sistance Act (42 U.S.C. 11301 note) is amended by strik-
ing the item relating to the heading for subtitle A of title
IV and all that follows through the item relating to the
heading for subtitle G of such title and inserting the fol-
lowing:
‘‘Subtitle A—Homeless Housing Assistance and Prevention Formula Grant
Program
‘‘CHAPTER 1—GENERAL PROVISIONS
‘‘Sec. 401. Statement of purpose.
‘‘Sec. 402. Definitions.
‘‘Sec. 403. General authority.
‘‘Sec. 404. Allocation and distribution of funds.
‘‘Sec. 405. Requirements of grantees and project sponsors.
‘‘Sec. 406. Administrative provisions.
‘‘Sec. 407. Reports to Congress.
‘‘Sec. 408. Authorization of appropriations.
‘‘CHAPTER 2—APPROVED ACTIVITIES
‘‘Sec. 421. Homelessness prevention.
‘‘Sec. 422. Emergency shelter.
‘‘Sec. 423. Supportive housing for the homeless.
‘‘Sec. 424. Development of additional approved activities.
‘‘Subtitle B—Safe Havens for Homeless Individuals Demonstration Program
‘‘Sec. 431. Establishment of demonstration.
‘‘Sec. 432. Definitions.
‘‘Sec. 433. Program assistance.
‘‘Sec. 434. Program requirements.
‘‘Sec. 435. Occupancy charge.
‘‘Sec. 436. Termination of assistance.
‘‘Sec. 437. Evaluation and report.
‘‘Sec. 438. Regulations.
‘‘Sec. 439. Authorization of appropriations.
‘‘Subtitle C—Miscellaneous Programs
‘‘Sec. 441. Section 8 assistance for single room occupancy dwellings.
‘‘Sec. 442. Community development block grant amendment.
‘‘Sec. 443. Administrative provisions.
‘‘Subtitle D—Shelter Plus Care Program
‘‘PART I—GENERAL REQUIREMENTS
‘‘Sec. 451. Purpose.
‘‘Sec. 452. Rental housing assistance.
‘‘Sec. 453. Supportive services requirements.
‘‘Sec. 454. Applications.
‘‘Sec. 455. Selection criteria.
‘‘Sec. 456. Required agreements.
‘‘Sec. 457. Housing standards and rent reasonableness.
‘‘Sec. 458. Tenant rent.
‘‘Sec. 459. Administrative fees.
‘‘Sec. 460. Occupancy.
‘‘Sec. 461. Termination of assistance.
‘‘Sec. 462. Definitions.
‘‘Sec. 463. Authorization of appropriations.
‘‘PART II—TENANT-BASED RENTAL ASSISTANCE
‘‘Sec. 471. Authority.
‘‘Sec. 472. Housing assistance.
‘‘Sec. 473. Amount of assistance.
‘‘PART III—PROJECT-BASED RENTAL ASSISTANCE
‘‘Sec. 476. Authority.
‘‘Sec. 477. Housing assistance.
‘‘Sec. 478. Term of contract and amount of assistance.
‘‘PART IV—SPONSOR-BASED RENTAL ASSISTANCE
‘‘Sec. 481. Authority.
‘‘Sec. 482. Housing assistance.
‘‘Sec. 483. Term of contract and amount of assistance.
‘‘PART V—SECTION 8 MODERATE REHABILITATION ASSISTANCE FOR
SINGLE-ROOM OCCUPANCY DWELLINGS
‘‘Sec. 486. Authority.
‘‘Sec. 487. Fire and safety improvements.
‘‘Sec. 488. Contract requirements.
‘‘Subtitle E—Rural Homeless Housing Assistance
‘‘Sec. 491. Rural homelessness grant program.
‘‘Sec. 492. Use of FMHA inventory for transitional housing for homeless per-
sons and for turnkey housing.’’.
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