182
including the acquisition from the Resolution Trust
Corporation, to be used as supportive housing for
persons with disabilities and may include real prop-
erty acquisition, site improvement, conversion, demo-
lition, relocation, and other expenses that the Sec-
retary determines are necessary to expand the sup-
ply of supportive housing for persons with disabil-
ities. Such assistance may also be used to finance
the acquisition and installation of cottage housing
units that are small, freestanding, barrier-free, en-
ergy efficient, removable and designed to be installed
adjacent to existing 1- to 4-family dwellings and are
used as supportive housing for the persons with dis-
abilities in accordance with this section.’’;
(3) in subsections (d)(3), (e)(1), and (f), by in-
serting ‘‘or (3)’’ after ‘‘subsection (b)(2)’’ each place
it appears; and
(4) by striking paragraph (4) of subsection (d)
and inserting the following new paragraph:
‘‘(4) TENANT-BASED RENTAL ASSISTANCE.—
‘‘(A) 
ADMINISTRATION.—Tenant-based
rental assistance that is provided under sub-
section (b)(1) shall be administered under the
same rules governing rental assistance made
183
available under section 8 of the United States
Housing Act of 1937.
‘‘(B) PUBLIC HOUSING AGENCIES.—A pub-
lic housing agency may provide tenant-based
rental assistance under subsection (b)(1) only if
the public housing agency has submitted, and
had approved, an allocation plan under section
7(f) of the United States Housing Act of 1937
and any such assistance made available to a
public housing agency shall be provided by the
agency in accordance with such allocation plan.
In determining the amount of assistance pro-
vided under subsection (b)(1) for a public hous-
ing agency, the Secretary shall consider the
needs of the agency as described in the alloca-
tion plan.’’.
(d) TECHNICAL CHANGES.—Section 811(k)(6) of the
Cranston-Gonzalez National Affordable Housing Act is
amended by striking subparagraph (A) and inserting the
following new subparagraph:
‘‘(A) that has received tax-exempt status
under section 501(c) (3) or (4) of the Internal
Revenue Code of 1986;’’.
184
SEC. 153. REVISED CONGREGATE SERVICES.
(a) MEAL FEES AND MATCHING AMOUNTS.—Section
802 of the Cranston-Gonzalez National Affordable Hous-
ing Act (42 U.S.C. 8011) is amended—
(1) in subparagraph (A) of subsection (d)(7),
by striking ‘‘The fees for meals shall be in the fol-
lowing amounts:’’ and all that follows through the
end of the subparagraph; and
(2) in subsection (i)(1)—
(A) in subparagraph (A)(i), by striking
‘‘50 percent’’ and inserting ‘‘25 percent’’;
(B) in subparagraph (A)(ii), by striking
‘‘40 percent’’ and inserting ‘‘65 percent’’; and
(C) in subparagraph (C), by striking ‘‘10
percent’’ and inserting ‘‘25 percent’’.
(b) DEFINITION
OF ‘‘FRAIL ELDERLY’’.—Section
802(k)(8) of the Cranston-Gonzalez National Affordable
Housing Act is amended by striking the first sentence and
inserting the following new sentences: ‘‘The term ‘frail el-
derly’ means an elderly person whose level of functional
disability jeopardizes her or his ability to continue to live
independently. The Secretary shall, to the extent possible,
develop assessment measures of functional disability that
are appropriate for purposes of this section and will pro-
vide for effective use of the program under this section
with other programs providing supportive services.’’.
185
SEC. 154. SUPPORTIVE HOUSING ASSISTANCE FOR ELDER-
LY INDEPENDENCE.
(a) SUPPORTIVE SERVICES CONTRIBUTIONS.—Sec-
tion 803(c)(1) of the Cranston-Gonzalez National Afford-
able Housing Act is amended—
(1) in subparagraph (A), by striking ‘‘40 per-
cent’’ and inserting ‘‘65 percent’’; and
(2) in subparagraph (B), by striking ‘‘50 per-
cent’’ and inserting ‘‘25 percent’’.
(b) DEFINITION
OF ‘‘FRAIL ELDERLY’’.—Section
803(g)(3) of the Cranston-Gonzalez National Affordable
Housing Act is amended by striking the first sentence and
inserting the following new sentences: ‘‘The term ‘frail el-
derly person’ means an elderly person whose level of func-
tional disability jeopardizes her or his ability to continue
to live independently. The Secretary shall, to the extent
possible, develop assessment measures of functional dis-
ability that are appropriate for purposes of this section
and will provide for effective use of the program under
this section with other programs providing supportive
services.’’.
(c) AMENDMENT TO HEADING.—Section 803 of the
Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 8012) is amended by striking the section designa-
tion and heading and inserting the following:
186
‘‘SEC. 803. SUPPORTIVE HOUSING ASSISTANCE FOR ELDER-
LY INDEPENDENCE.’’.
Subtitle F—Mortgage Insurance and
Secondary Mortgage Market
SEC. 161. EXTENSION OF MULTIFAMILY HOUSING MORT-
GAGE AUCTION PROVISIONS.
(a) EXTENSION.—The first sentence of section
221(g)(4)(C)(viii) of the National Housing Act (12 U.S.C.
1715l(g)(4)(C)(viii)) is amended by striking ‘‘September
30, 1995’’ and inserting ‘‘December 31, 2005’’.
(b) BUDGET COMPLIANCE.—Section 221(g)(4)(C) of
the National Housing Act (12 U.S.C. 1715l(g)(4)(C)) is
amended by adding at the end the following new clause:
‘‘(ix) This subparagraph shall be effective for
any fiscal year only to such extent or in such
amounts as are or have been provided in appropria-
tion Acts for such fiscal year.’’.
SEC. 162. STREAMLINED REFINANCING FOR HUD-HELD
MORTGAGES.
(a) IN GENERAL.—Section 223(a) of the National
Housing Act (12 U.S.C. 1715n) is amended—
(1) in paragraph (7), by striking the colon pre-
ceding ‘‘Provided further,’’ and all that follows
through ‘‘and the mortgagee’’;
(2) by redesignating paragraph (8) as para-
graph (9);
187
(3) by inserting after paragraph (7) the follow-
ing new paragraph:
‘‘(8) given to refinance a mortgage held by the
Secretary, upon such terms and conditions as the
Secretary may prescribe, covering property on which
there is located a 1- to 4-family residence, or a 1-
family unit in a condominium project, which mort-
gage was formerly insured under this Act and subse-
quently assigned to the Secretary: Provided, That
the mortgagor has not previously refinanced a mort-
gage pursuant to this paragraph: Provided further,
That the mortgagor has made all payments due
under the note secured by the existing mortgage and
all payments due under the note for at least the pre-
vious 6 months, or the mortgagor is under a forbear-
ance agreement and has made all payments due
under the note secured by the existing mortgage for
at least the previous 6 months: Provided further,
That the principal amount of the refinancing mort-
gage may not exceed the outstanding principal bal-
ance of the existing mortgage by more than addi-
tional amounts owed by the mortgagor due to the
delinquency and to the receipt of assignment assist-
ance under section 230: Provided further, That the
monthly payment due under the refinancing mort-
188
gage may not exceed the monthly payment due
under the existing mortgage: Provided further, That
the refinancing mortgage may have a term not more
than 12 years in excess of the unexpired term of the
assigned mortgage: Provided further, That the refi-
nancing mortgage may be insured under section
203(b) or 221(d)(2) of this Act, at the option of the
mortgagee, or under section 234(c) of this Act in the
case of a condominium: Provided further, That a re-
financing mortgage insured under section 221(d)(2)
shall involve a principal obligation in an amount not
to exceed 50 percent of the applicable dollar limita-
tion for a 1- to 4-family residence under section
203(b)(2): Provided further, That the authority
under this paragraph to refinance a mortgage shall
terminate 30 months after the date of enactment of
this Act: Provided further, That the total number of
mortgages refinanced under this paragraph may not
exceed 20,000; or’’; and
(4) by adding at the end the following new
flush material:
‘‘A mortgage of the character described in paragraphs (1)
through (6) of this subsection shall have a maturity and
a principal obligation not in excess of the maximums pre-
scribed under the applicable section or title of this Act,
189
except that in no case may the principal obligation of a
mortgage referred to in paragraph (5) of this subsection
exceed 90 percent of the appraised value of the mortgage
property, and shall bear interest at such rate as may be
agreed upon by the mortgagor and the mortgagee.’’.
(b) IMPLEMENTATION.—The Secretary of Housing
and Urban Development may implement the authority to
refinance a mortgage held by the Secretary under section
223(a)(8) of the National Housing Act, as added by the
amendment made by subsection (a)(3) of this section, by
notice published in the Federal Register setting forth such
requirements as may be necessary.
SEC. 163. DELEGATION OF SINGLE FAMILY MORTGAGE IN-
SURING AUTHORITY TO DIRECT ENDORSE-
MENT MORTGAGEES.
Title II of the National Housing Act (12 U.S.C. 1707
et seq.), is amended by adding at the end the following
new section:
‘‘DELEGATION OF INSURING AUTHORITY TO DIRECT
ENDORSEMENT MORTGAGEES
‘‘SEC. 256. (a) AUTHORITY.—The Secretary may del-
egate, to one or more mortgagees approved by the Sec-
retary under the direct endorsement program, the author-
ity of the Secretary under this Act to insure mortgages
involving property upon which there is located a dwelling
designed principally for occupancy by 1 to 4 families.
190
‘‘(b) CONSIDERATIONS.—In determining whether to
delegate authority to a mortgagee under this section, the
Secretary shall consider the experience and performance
of the mortgagee under the direct endorsement program,
the default rate of insured mortgages originated by the
mortgagee compared to the default rate of all insured
mortgages in comparable markets, and such other factors
as the Secretary determines appropriate to minimize risk
of loss to the insurance funds under this Act.
‘‘(c) ENFORCEMENT
OF
INSURANCE
REQUIRE-
MENTS.—
‘‘(1) IN GENERAL.—If the Secretary determines
that a mortgage insured by a mortgagee pursuant to
delegation of authority under this section was not
originated in accordance with the requirements es-
tablished by the Secretary, and the Secretary pays
an insurance claim with respect to the mortgage
within a reasonable period specified by the Sec-
retary, the Secretary may require the mortgagee ap-
proved under this section to indemnify the Secretary
for the loss.
‘‘(2) 
FRAUD
OR
MISREPRESENTATION.—If
fraud or misrepresentation was involved in connec-
tion with the origination, the Secretary may require
the mortgagee approved under this section to indem-
191
nify the Secretary for the loss regardless of when an
insurance claim is paid.
‘‘(d) TERMINATION OF MORTGAGEE’S AUTHORITY.—
If a mortgagee to which the Secretary has made a delega-
tion under this section violates the requirements and pro-
cedures established by the Secretary or the Secretary de-
termines that other good cause exists, the Secretary may
cancel a delegation of authority under this section to the
mortgagee by giving notice to the mortgagee. Such a can-
cellation shall be effective upon receipt of the notice by
the mortgagee or at a later date specified by the Secretary.
A decision by the Secretary to cancel a delegation shall
be final and conclusive and shall not be subject to judicial
review.
‘‘(e) REQUIREMENTS AND PROCEDURES.—Before ap-
proving a delegation under this section, the Secretary shall
issue regulations establishing appropriate requirements
and procedures, including requirements and procedures
governing the indemnification of the Secretary by the
mortgagee.’’.
TITLE II—COMMUNITY DEVELOPMENT
SEC. 201. ELIGIBLE ACTIVITIES.
Section 907(b)(2) of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 5305 note) is hereby
repealed.
192
SEC. 202. REALLOCATIONS.
Section 106(c) of the Housing and Community Devel-
opment Act of 1974 (42 U.S.C. 5304(c)) is amended by
striking paragraph (4).
SEC. 203. USE OF UDAG RECAPTURES.
Section 119(o) of the Housing and Community De-
velopment Act of 1974 (42 U.S.C. 5318(o)) is amended
by striking ‘‘October 1, 1993’’ and inserting in lieu thereof
‘‘April 11, 1994’’.
SEC. 204. EXTENSION OF CERTAIN CDBG ASSISTANCE.
(a) EXTENSION.—Section 916(f) of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C.
5306 note) is amended by striking ‘‘1991’’ and all that
follows through ‘‘1994’’ and inserting ‘‘beginning before
the commencement of fiscal year 1998’’.
SEC. 205. COLONIAS ASSISTANCE PROGRAM.
(a) GRANT AUTHORITY.—The Secretary may make
grants in accordance with the provisions of this section
to units of general local government, States, nonprofit or-
ganizations, or entities or instrumentalities established
under the authority of any of such entities, for use in ad-
dressing the community development and housing needs
of colonias.
(b) ELIGIBLE ACTIVITIES.—Assistance under this
section may be used only to carry out the following activi-
ties:
193
(1) Any activity eligible under section 105 of
the Housing and Community Development Act of
1974 or section 212(a) of the HOME Investment
Partnerships Act.
(2) Refinancing the existing debt of home-
owners to convert existing land transactions and in-
terests into mortgages.
(3) Constructing new housing, including self-
help, energy-efficient, and innovative housing design
initiatives.
(4) Developing new subdivisions for affordable
housing.
(5) Re-platting and redeveloping existing sub-
divisions.
(6) Planning for and constructing infrastruc-
ture necessary for the development of housing, eco-
nomic development, and community facilities and
amenities.
(7) Such other activities as the Secretary deems
appropriate to further the purposes of this section.
(c) MODEL PROGRAMS.—
(1) IN GENERAL.—Of amounts allocated under
subsection (j)(2), the Secretary shall make grants
under this subsection to the entities referred to in
subsection (a) for the purpose of establishing model
194
programs of assistance for addressing the commu-
nity development, housing, and other needs of the
residents of the colonias.
(d) SELECTION OF GRANTEES.—
(1) GEOGRAPHIC
DISTRIBUTION.—The Sec-
retary shall designate—
(A) at least one project in each State to re-
ceive a grant under this subsection; and
(B) at least one project within a metropoli-
tan area in any State to receive a grant under
this subsection.
(2) SELECTION PROCESS.—The Secretary shall
select grantees under this subsection on a non-
competitive basis, through negotiation with the
grantee.
(3) 
SELECTION
CRITERIA.—In 
selecting
projects for grants under this subsection, the Sec-
retary shall consider—
(A) the extent of need in the colonia;
(B) the likely effectiveness of the proposed
approach in addressing identified needs;
(C) the extent to which funding for the
project is committed from sources other than
under this section;
195
(D) the need to consider a variety of solu-
tions to a variety of needs situations; and
(E) such other factors as the Secretary
deems appropriate to carry out the objectives of
this section.
(e) COMPETITIVE GRANTS.—
(1) PURPOSE.—Grants under this subsection
shall be made, in accordance with paragraph (2), to
the entities referred to in subsection (a) for the pur-
pose of assisting the community development and
housing needs of the residents of one or more
colonias in an area or region.
(2) RESERVATION OF FUNDS.—Of amounts al-
located under subsection (j)(2), the Secretary shall
reserve a target amount for grants under this sub-
section for use in colonias in each State. The Sec-
retary shall determine the amount be reserved based
on such objective factors of need as the Secretary
deems appropriate, which may include rates of pov-
erty in, and the population of, colonias. The Sec-
retary shall reallocate any amounts set-aside under
this paragraph for which the Secretary determines
there will not be sufficient approvable applications in
a fiscal year.
196
(3) USE OF FUNDS.—Any amount not reserved
or reallocated under paragraph (2) may be used in
colonias in any State.
(4) APPLICATIONS.—Applications for grants
under this subsection shall be submitted at such
time and in accordance with such procedures, as the
Secretary shall prescribe. Applications shall contain
the following information, which the Secretary shall
consider in selecting projects for grants under this
subsection:
(A) The extent of need in the colonia.
(B) An estimate of the likely effectiveness
of the proposed approach in addressing identi-
fied needs.
(C) A description of the extent to which
funding for the project is committed from
sources other than under this section.
(D) Any other information that the Sec-
retary deems appropriate to carry out the objec-
tives of this section.
(5) SELECTION OF GRANTEES.—The Secretary
shall select grantees for grants under this subsection
on the basis of a competition, following publication
of a notice of funding availability in the Federal
Register.
197
(f) RECORDS, REPORTS, AND AUDITS.—
(1) KEEPING
OF
RECORDS.—Each grantee
under this section shall keep such records as may be
reasonably necessary to disclose the amounts and
the disposition of grant amounts received under this
section and to ensure compliance with the require-
ments of this section.
(2) GRANTEE REPORTS.—Each grantee under
this section shall submit to the Secretary a report,
or series of reports, in a form and at a time speci-
fied by the Secretary. Each report shall—
(A) describe the use of funds made avail-
able to the grantee under this section; and
(B) describe and analyze the effect of as-
sisted activities in addressing the community
development and housing needs of the residents
of colonias.
(g) ACCESS TO DOCUMENTS BY SECRETARY.—The
Secretary shall have access for the purpose of audit and
examination to any books, documents, papers, and records
of a grantee that are pertinent to assistance received in
connection with, and the requirements of, this section.
(h) ACCESS TO DOCUMENTS BY COMPTROLLER GEN-
ERAL.—The Comptroller General of the United States, or
any of the duly authorized representatives of the Comp-
198
troller General, shall have access for the purpose of audit
and examination to any books, documents, papers, and
records of a grantee that are pertinent to assistance re-
ceived under, and the requirements of, this section.
(i) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
(1) The terms ‘‘colonia’’ and ‘‘United States-
Mexico Border Region’’ have the meanings given the
terms in section 916(e) of the Cranston-Gonzalez
National Affordable Housing Act.
(2) The term ‘‘metropolitan area’’ has the
meaning given the term in section 102(a) of the
Housing and Community Development Act of 1974.
(3) The term ‘‘nonprofit organization’’ means—
(A) an organization—
(i) that is described in section 501(c)
of the Internal Revenue Code of 1986; and
(ii) is exempt from taxation under
section 501(a) of such Code; or
(B) an organization—
(i) no part of the net earnings of
which inures to the benefit of any member,
founder, contributor, or individual;
(ii) that in the case of a private non-
profit organization, has a voluntary board;
199
(iii) that has an accounting system, or
has designated a fiscal agent in accordance
with requirements established by the Sec-
retary; and
(iv) that practices nondiscrimination
in the provision of assistance.
(4) The term ‘‘Secretary’’ means the Secretary
of Housing and Urban Development.
(5) The term ‘‘State’’ means the States of Cali-
fornia, Arizona, New Mexico, and Texas.
(6) The term ‘‘unit of general local govern-
ment’’ means—
(A) a city, town, township, county, parish,
village, or other general purpose political sub-
division of a State; and
(B) any agency or instrumentality thereof
that is established pursuant to legislation and
designated by the chief executive to act on be-
half of the jurisdiction with regard to provisions
of this section.
The term includes a consortium of geographically
contiguous units of general local government, if the
Secretary determines that the consortium—
(i) has sufficient authority and administra-
tive capability to carry out the purposes of this
200
section on behalf of its member jurisdictions;
and
(ii) meets such other requirements as the
Secretary may prescribe.
SEC. 206. YOUTHBUILD PROGRAM.
(a) ELIGIBLE ACTIVITIES.—Section 454(b) of the
Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12899c(b)) is amended—
(1) in paragraph (2), by striking ‘‘Acquisition’’
and all that follows through ‘‘facilities’’ and insert-
ing ‘‘Acquisition, rehabilitation, or acquisition and
rehabilitation of housing and related facilities, or
construction of new housing and related facilities
(including community facilities designed to serve the
needs of low- and very low-income families),’’;
(2) by striking paragraph (6); and
(3) by redesignating paragraphs (7) and (8) as
paragraphs (6) and (7), respectively.
(b) PRIORITY
FOR APPLICANTS SUPPLEMENTING
GRANT AMOUNTS.—Section 454(e) of the Cranston-Gon-
zalez National Affordable Housing Act (42 U.S.C.
12899c(e)) is amended to read as follows:
‘‘(e) PRIORITY FOR APPLICANTS WHO OBTAIN PRO-
GRAM FUNDS FROM OTHER SOURCES.—The Secretary
shall give priority in the award of grants under this section
201
to applicants to the extent that they have obtained
amounts or in-kind contributions, or commitments to pro-
vide such amounts or contributions, from Federal, State,
local, or private sources other than assistance under this
subtitle in an amount constituting not less than 10 percent
of the total budget of the applicant for the Youthbuild pro-
gram, that will be used for carrying out any aspect of the
Youthbuild program of the applicant.’’.
(c) RESIDENTIAL
RENTAL
HOUSING
REQUIRE-
MENTS.—Section 455(a) of the Cranston-Gonzalez Na-
tional Affordable Housing Act (42 U.S.C. 12899d(a)) is
amended—
(1) in the matter preceding paragraph (1), by
inserting after ‘‘subtitle’’ the following: ‘‘for costs
such as construction, rehabilitation, and acquisi-
tion’’; and
(2) in paragraph (1), by striking subparagraph
(A) and inserting the following new subparagraph:
‘‘(A) at least 80 percent of the units shall
be occupied, or available for occupancy, by indi-
viduals and families with incomes that do not
exceed 50 percent of the area median income,
adjusted for family size; and’’.
202
TITLE III—HOMELESS ASSISTANCE
SEC. 301. SHORT TITLE.
This title may be cited as the ‘‘Stewart B. McKinney
Homeless Housing Assistance Amendments Act of 1994’’.
Subtitle A—Reorganization of Certain
McKinney Act Housing Provisions
SEC. 311. FLEXIBLE GRANT PROGRAM.
Title IV of the Stewart B. McKinney Homeless As-
sistance Act (42 U.S.C. 11361 et seq.) is amended—
(1) by striking subtitles A, B, C, D, and F;
(2) by striking the headings for subtitles E and
G;
(3) by redesignating sections 441 (as amended
by the preceding provisions of this Act), 491, and
592 (as added by section 1414 of the Housing and
Community Development Act of 1992) as sections
451, 453, and 454, respectively;
(4) by striking sections 442 and 443; and
(5) by inserting after the heading for the title
the following:
‘‘Subtitle A—Flexible Grant Program
‘‘CHAPTER 1—GENERAL PROVISIONS
‘‘SEC. 401. PURPOSES.
‘‘The purposes of this subtitle are to—
203
‘‘(1) expand and reorganize the Federal com-
mitment to alleviate homelessness by providing
States, Indian tribes, and localities with the re-
sources to more efficiently and effectively design a
comprehensive system to address the shelter, service,
and permanent housing needs of homeless individ-
uals and families in the United States;
‘‘(2) help very low-income families avoid becom-
ing homeless;
‘‘(3) meet the emergency shelter needs of home-
less persons and families;
‘‘(4) provide transitional or specialized perma-
nent housing to facilitate the movement of homeless
persons and families to independent living;
‘‘(5) provide supportive services to help home-
less persons and families lead independent and dig-
nified lives;
‘‘(6) encourage the cooperation and participa-
tion of the States and units of general local govern-
ment, together with private nonprofit organizations,
in planning and implementing comprehensive home-
less assistance programs;
‘‘(7) reduce the costs to States, units of general
local government, and private nonprofit organiza-
tions in applying for and using Federal housing as-
204
sistance for families and persons who are homeless;
and
‘‘(8) begin meeting the needs of most of the
Nation’s homeless population through the existing
Federal programs providing basic assistance for low-
income families and persons.
‘‘SEC. 403. DEFINITIONS.
‘‘For purposes of this subtitle, the following defini-
tions shall apply:
‘‘(1) The term ‘allocation unit of general local
government’ means a metropolitan city and an
urban county.
‘‘(2) The term ‘applicant’ means an eligible
grantee that submits an application under section
408 for a grant under this subtitle.
‘‘(3) The term ‘disability’ means—
‘‘(A) a disability as defined in section 223
of the Social Security Act;
‘‘(B) to be determined to have, pursuant to
regulations issued by the Secretary, a physical,
mental, or emotional impairment which (i) is
expected to be a long-continued and indefinite
duration, (ii) substantially impedes an individ-
ual’s ability to live independently, and (iii) of
205
such a nature that such ability could be im-
proved by more suitable housing conditions;
‘‘(C) a developmental disability as defined
in section 102 of the Developmental Disabilities
Assistance and Bill of Rights Act; or
‘‘(D) 
the 
disease 
of 
acquired
immunodeficiency syndrome or any conditions
arising from the etiologic agency for acquired
immunodeficiency syndrome.
Subparagraph (D) shall not be construed to limit eli-
gibility under subparagraphs (A) through (C) or the
provisions referred to in subparagraphs (A) through
(C).
‘‘(4) The term ‘eligible grantee’ means—
‘‘(A) an allocation unit of general local
government, Indian Tribe, or insular area, or a
consortium of such entities, that elects to ad-
minister a grant under section 410(a)(1);
‘‘(B) a public agency or a private nonprofit
organization (or a consortium of such organiza-
tions) designated by the Secretary under section
410(a)(3) to administer grant amounts for an
allocation unit of general local government, In-
dian tribe, or insular area;
206
‘‘(C) an entity eligible to receive grant
amounts from the Secretary under section
410(a)(4);
‘‘(D) a State that elects under section
410(b)(1)(A) to administer a grant;
‘‘(E) a unit of general local government se-
lected under section 410(b)(5) to receive grant
amounts from the Secretary; and
‘‘(F) a private nonprofit organization se-
lected under section 410(b)(4) to receive grant
amounts from the Secretary.
‘‘(5) The term ‘families’ has the same meaning
given the term under section 3(b) of the United
States Housing Act of 1937.
‘‘(6) The term ‘grantee’ means—
‘‘(A) an allocation unit of general local
government, Indian tribe, or insular area, or a
consortium of such entities, that receives a
grant under this subtitle and administers the
grant under section 410(a)(1);
‘‘(B) an allocation unit of general local
government, Indian tribe, or insular area that
receives a grant under this subtitle and des-
ignates a public agency or private nonprofit or-
ganization (or a consortium of such organiza-
207
tions) to administer grant amounts for the ju-
risdiction under section 410(a)(2);
‘‘(C) a public agency or a private nonprofit
organization (or a consortium or such organiza-
tions) designated by the Secretary under section
410(a)(3) to administer grant amounts for an
allocation unit of general local government, In-
dian tribe, or insular area, and that receives
grant amounts under this subtitle;
‘‘(D) an entity that receives grant amounts
from the Secretary under section 410(a)(4);
‘‘(E) a State that receives grant amounts
under this subtitle and administers such
amounts under section 410(b)(1)(A);
‘‘(F) a unit of general local government
that receives grant amounts from the Secretary
under section 410(b)(5); and
‘‘(G) a private nonprofit organization that
receives grant amounts from the Secretary
under section 410(b)(4).
‘‘(7) The term ‘homeless family’ means a group
of one or more related individuals who are homeless
individuals.
‘‘(8) The term ‘Indian tribe’ means any Indian
tribe, band, group, and nation, including Alaska In-
208
dians, Aleuts, and Eskimos, and any Alaskan Native
Village, of the United States, which is considered an
eligible recipient under the Indian Self-Determina-
tion and Education Assistance Act or was considered
an eligible recipient under chapter 67 of title 31,
United States Code, before the repeal of such
chapter.
‘‘(9) The term ‘insular area’ means the Virgin
Islands, Guam, American Samoa, and the Common-
wealth of the Northern Mariana Islands.
‘‘(10) The term ‘low-demand services and refer-
rals’ means the provision of health care, mental
health, substance abuse, and other supportive serv-
ices and referrals for services in a noncoercive man-
ner, which may include medication management,
education, counseling, job training, and assistance in
obtaining entitlement benefits and in obtaining other
supportive service including mental health treatment
and substance abuse treatment.
‘‘(11) The term ‘metropolitan city’ has the
meaning given the term in section 102(a) of the
Housing and Community Development Act of 1974.
‘‘(12) The term ‘operating costs’ means ex-
penses of operating any housing assisted under this
subtitle with respect to—
209
‘‘(A) the administration, maintenance, re-
pair, and security of such housing;
‘‘(B) utilities, fuels, furnishings, and equip-
ment for such housing; and
‘‘(C) the conducting of the assessments of
and the provision of supportive services to the
residents of such housing.
‘‘(13) The term ‘outpatient health services’
means outpatient health care, outpatient mental
health services, outpatient substance abuse services,
case management services and child immunization.
‘‘(14) The term ‘private nonprofit organization’
means an organization—
‘‘(A) no part of the net earnings of which
inures to the benefit of any member, founder,
contributor, 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.
‘‘(15) The term ‘project’ means a structure or
a portion of a structure that is acquired or rehabili-
tated with assistance provided under this subtitle or
210
with respect to which the Secretary provides tech-
nical assistance or annual payments for operation
costs.
‘‘(16) The term ‘project sponsor’ means an en-
tity that—
‘‘(A) provides housing or assistance for
homeless individuals or families by carrying out
eligible activities under chapter 2 that are as-
sisted under this subtitle; and
‘‘(B) meets such minimum standards as
the Secretary considers appropriate.
‘‘(17) The term ‘recipient’ means a grantee
(other than a State distributing grant amounts to
State recipients) and a State recipient.
‘‘(18) The term ‘Secretary’ means the Secretary
of Housing and Urban Development.
‘‘(19) The term ‘State’ means a State of the
United States and the Commonwealth of Puerto
Rico, or any agency or instrumentality thereof that
is established pursuant to legislation and designated
by the chief executive to act on behalf of the juris-
diction with regard to provisions of this subtitle.
‘‘(20) The term ‘State recipient’ means—
‘‘(A) a unit of general local government
within a State (other than an allocation unit of
211
general local government) that receives grant
amounts 
from 
the 
State 
under 
section
410(b)(3); and
‘‘(B) a private nonprofit organization that
receives grant amounts from a State under sec-
tion 410(b)(4).
‘‘(21)(A) The term ‘supportive services’ means
assistance that—
‘‘(i) addresses the special needs of home-
less persons, such as deinstitutionalized per-
sons, families with children, persons with men-
tal disabilities, other persons with disabilities,
the elderly, and veterans intended to be served
by a project; and
‘‘(ii) assists in accomplishing the purposes
of the different types of housing for the home-
less eligible for assistance under this subtitle.
‘‘(B) Such term includes—
‘‘(i) food services, child care, substance
abuse treatment, assistance in obtaining perma-
nent housing, outpatient health services, em-
ployment counseling, nutritional counseling, se-
curity arrangements for the protection of resi-
dents of facilities to assist the homeless, and
such other services essential for maintaining or
212
moving toward independent living as the Sec-
retary determines to be appropriate; and
‘‘(ii) assistance to homeless persons in ob-
taining other Federal, State, and local assist-
ance available for such individuals, including
public assistance benefits, mental health bene-
fits, employment counseling, and medical assist-
ance.
‘‘(C) Such term does not include the provision
of major medical equipment.
‘‘(D) All or part of the supportive services may
be provided directly by the project sponsor or by
arrangements with other public or private service
providers.
‘‘(22) The term ‘unit of general local govern-
ment’ 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 to act on be-
half of the jurisdiction with regard to provisions
of this subtitle.
213
The term includes a consortium of geographically
contiguous units of general local government if the
Secretary determines that the consortium—
‘‘(i) has sufficient authority and adminis-
trative capability to carry out the purposes of
this subtitle on behalf of its member jurisdic-
tions; and
‘‘(ii) will, according to a written certifi-
cation by the State (or State, if the consortium
includes jurisdictions in more than one State),
direct its activities to alleviation of problems of
homeless individuals or families within the
State or States.
‘‘(23) The term ‘urban county’ has the meaning
given the term in section 102(a) of the Housing and
Community Development Act of 1974.
‘‘(24) The term ‘very low-income families’ has
the same meaning given the term under section 104
of the Cranston-Gonzalez National Affordable Hous-
ing Act.
‘‘SEC. 404. PROVISION OF GRANTS.
‘‘(a) AUTHORITY
AND USE.—The Secretary may
make grants to eligible grantees in accordance with the
provisions of this subtitle. Grants under this subtitle may
be used only—
214
‘‘(1) to carry out activities under chapter 2 for
assisting homeless individuals and families that are
conducted to provide comprehensive homeless assist-
ance required under section 405; and
‘‘(2) for administrative expenses, to the extent
provided in section 436.
‘‘(b) GENERAL RULE FOR AWARD OF GRANTS.—Ex-
cept as provided in subsection (c), the Secretary shall
make grants using amounts appropriated under section
402 in the manner provided in this subtitle.
‘‘(c) INSUFFICIENT APPROPRIATIONS.—
‘‘(1) TRIGGER.—If the amounts appropriated
pursuant to section 402 for any fiscal year are less
than 50 percent of the amount authorized to be ap-
propriated under such section for the year, the Sec-
retary shall use such amounts to make grants under
the provisions of this title as in effect immediately
before the enactment of the Housing and Commu-
nity Development Act of 1994.
‘‘(2) GRANT
REQUIREMENTS.—The Secretary
shall establish requirements for grants made under
this subsection, as the Secretary considers appro-
priate, that are additional or alternative to the re-
quirements under the provisions of this title as in ef-
215
fect immediately before the enactment of the Hous-
ing and Community Development Act of 1994.
‘‘(3) GRANT CRITERIA.—The criteria for award-
ing grants under this subsection shall include—
‘‘(A) the extent to which there is a need
for assistance for homeless individuals and fam-
ilies in the jurisdiction in which the grant will
be used;
‘‘(B) the extent to which the activities pro-
posed to be carried out with grant amounts will
further the provision of comprehensive homeless
assistance required under section 405(b)(1);
‘‘(C) the extent to which private nonprofit
organizations providing assistance to homeless
individuals and families in the jurisdiction have
been, and will be, included in planning for the
receipt of assistance under this subtitle, the de-
velopment of the application under section 408,
and the execution of the proposed activities;
and
‘‘(D) such other criteria as the Secretary
considers appropriate to further the purposes of
this subsection and this subtitle.
‘‘(4) SET ASIDE FOR INDIAN TRIBES AND INSU-
LAR
AREAS.—In making grants under this sub-
216
section, the Secretary may to set aside such amounts
as the Secretary considers appropriate for grants for
Indian tribes and insular areas.
‘‘SEC. 405. COMPREHENSIVE HOMELESS ASSISTANCE.
‘‘(a) ESTABLISHMENT
AND MAINTENANCE.—Each
applicant shall, based on information provided in the cur-
rent comprehensive affordable housing strategy for the ap-
propriate jurisdiction under section 105 of the Cranston-
Gonzalez National Affordable Housing Act or such other
plan as the Secretary may prescribe, use assistance pro-
vided under this subtitle in a manner that ensures that
comprehensive homeless assistance is established and
maintained within the jurisdiction of the applicant.
‘‘(b) REQUIREMENTS.—For purposes of this subtitle,
comprehensive homeless assistance required under this
section shall include—
‘‘(1) providing a system of outreach and assess-
ment for—
‘‘(A) determining whether an individual or
family is homeless, needs assistance to avoid
being homeless, or needs other assistance; and
‘‘(B) ensuring that individuals and families
so identified receive appropriate housing and
supportive services;
217
‘‘(2) providing assistance to the extent nec-
essary to avoid eviction (or foreclosure) and termi-
nation of utility services of low- and very low-income
families to prevent such families from becoming
homeless;
‘‘(3) making emergency shelters with appro-
priate supportive services available to the extent nec-
essary to ensure that homeless individuals and fami-
lies for which such housing is appropriate receive
adequate shelter, including during any period in
which an assessment referred to in paragraph (1) is
performed for such an individual or family;
‘‘(4) making transitional housing with appro-
priate supportive services available to the extent nec-
essary to ensure that homeless individuals and fami-
lies for which such housing is appropriate are pre-
pared for increased responsibility and permanent
housing, or permanent supportive housing, after the
transition period;
‘‘(5) making permanent supportive housing,
available to the extent necessary to meet the long-
term housing needs of all homeless individuals and
families;
218
‘‘(6) providing assistance to meet specific needs
of various subpopulations of the homeless, especially
the unique needs of homeless veterans; and
‘‘(7) providing for coordination of assistance
provided under this subtitle and assistance provided
under other Federal, State, and local programs that
may be used to assist homeless individuals and fami-
lies, including—
‘‘(A) assistance under the programs for
public and Indian housing and section 8 rental
assistance under the United States Housing Act
of 1937 (including the program for section 8
assistance for moderate rehabilitation under
section 451 of this Act and the shelter plus care
program for such assistance under section 452
of this Act), the HOME Investment Partner-
ships Act, the community development block
grant program under title I of the Housing and
Community Development Act of 1974, the pro-
gram for supportive housing for the elderly
under section 202 of the Housing Act of 1959,
the program for supportive housing for persons
with disabilities under section 811 of the Cran-
ston-Gonzalez National Affordable Housing Act,
and the program for housing opportunities for
219
persons with AIDS under subtitle D of title
VIII of the Cranston-Gonzalez National Afford-
able Housing Act;
‘‘(B) programs administered by the Direc-
tor of the Federal Emergency Management
Agency;
‘‘(C) programs administered by the Sec-
retary of Labor, including programs for employ-
ment and training;
‘‘(D) programs administered by the Sec-
retary of Health and Human Services, including
programs for health care, mental health care,
social services, income support services, run-
away youth, and unfit transient facilities;
‘‘(E) programs administered by the Sec-
retary of Veterans Affairs (including programs
for compensation benefits, health care, and
mental health care, and other services and pro-
grams) that are specifically designed to assist
homeless veterans;
‘‘(F) programs administered by the Sec-
retary of Education, including programs for
adult education and education for homeless
children and youth;
220
‘‘(G) programs administered by the Cor-
poration for National and Community Service,
including programs for national service; and
‘‘(H) such other assistance as the Sec-
retary shall prescribe upon consultation with
the Interagency Council on the Homeless.
‘‘SEC. 406. MATCHING REQUIREMENTS.
‘‘(a) IN GENERAL.—Except as provided in subsection
(c), each recipient shall supplement the amount of grants
provided under this subtitle to the recipient with an
amount of funds from non-Federal sources equal to 50
percent of the Federal grant, which shall include funds
from project sponsors receiving assistance from the
recipient.
‘‘(b) SUPPLEMENTAL FUNDS.—Supplemental funds
may include (1) the value of any donated material or
building, the value of any lease on a building, (2) any sal-
ary paid to staff to carry out the program of a project
sponsor, (3) the value of the time and services contributed
by volunteers to carry out the program of project sponsor
at a rate determined by the Secretary, and (4) the pro-
ceeds from bond financing validly issued by a State or unit
of general local government, agency, or instrumentality
thereof, and repayable with revenues derived from a
project assisted under this subtitle, except that not more
221
than 25 percent of the contribution required may be de-
rived from the proceeds of such bond financings. Any
State or local government funds used independently from
the program under this title, or designated for such use,
to assist the homeless by carrying out activities that would
be eligible for assistance under this subtitle shall be con-
sidered supplemental funds under this section.
‘‘(c) STATES.—
‘‘In the case of a State administering grant
amounts under section 410(b)(1)(A), in each fiscal
year, the State shall supplement the amount of
grants provided under this subtitle with an amount
of funds from sources other than this subtitle equal
to 50 percent of the amount received under this sub-
title. Each grantee that is a State shall obtain any
supplemental amounts from State recipients receiv-
ing amounts under the grant.
‘‘(d) PROHIBITION OF SUBSTITUTION OF FUNDS.—
Assistance provided under this subtitle may not be used
to replace other public funds previously used, or des-
ignated for use, to assist persons who are homeless.
‘‘(e) CERTIFICATION.—Each recipient shall certify, to
the satisfaction of the Secretary, its compliance with the
provisions of this section, which shall describe the sources
222
and amounts of supplemental funds provided pursuant to
this section.
‘‘SEC. 
407. 
RESPONSIBILITIES 
OF 
RECIPIENTS 
AND
PROJECT SPONSORS.
‘‘(a) USE OF ASSISTANCE THROUGH PRIVATE NON-
PROFIT
ORGANIZATIONS.—Each recipient shall make
available more than 50 percent of the grant amounts it
receives for any fiscal year to project sponsors that are
private nonprofit organizations to carry out eligible activi-
ties under chapter 2, except that the Secretary may waive
the applicability of this requirement if the recipient dem-
onstrates to the Secretary that the requirement interferes
with the ability of the recipient to provide assistance under
this subtitle because of a 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 subtitle is decent, safe, and sanitary and, when
appropriate, 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
223
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
family violence prevention or treatment services under any
project and to ensure that the address or location or any
family violence shelter project assisted with grant amounts
under this subtitle will, except with written authorization
of the person or person responsible for the operation of
such shelter, not be made public.
‘‘(e) EMPLOYMENT OF HOMELESS INDIVIDUALS.—
To the maximum extent practicable, the Secretary shall
ensure that recipients involve, through employment, volun-
teer services, or otherwise, homeless individuals and fami-
lies in constructing, renovating, maintaining, and operat-
ing facilities assisted with grant amounts under this sub-
title, in providing services so assisted, and in providing
services for occupants of facilities so assisted.
‘‘(f) PARTICIPATION OF HOMELESS INDIVIDUALS.—
The Secretary shall, by regulation, provide that each recip-
ient shall require each project sponsor receiving assistance
under this subtitle from the recipient to provide for the
participation of not less than one homeless individual or
224
formerly homeless individual on the board of directors or
other equivalent policy making entity of the project spon-
sor, to the extent that such entity considers and makes
policies and decision regarding any project, facility, serv-
ices, or other activities assisted with grant amounts under
this subtitle. A recipient may grant waivers to project
sponsors unable to meet the requirement under the pre-
ceding sentence if the project sponsor agrees to otherwise
consult with homeless or formerly homeless individuals in
considering and making such policies and decisions.
‘‘SEC. 408. APPLICATION.
‘‘(a) REQUIREMENT.—Except as otherwise provided
in section 404(c), the Secretary may make a grant under
this subtitle only to an eligible grantee that submits an
application under this section that is approved by the
Secretary.
‘‘(b) FORM AND PROCEDURE.—Applications shall be
submitted in such form and in accordance with such proce-
dures as the Secretary shall, by regulation, establish.
‘‘(c) CONTENT.—An application under this section
shall—
‘‘(1) include a detailed description, based on in-
formation provided in the current comprehensive
housing affordability strategy under section 105 of
the Cranston-Gonzalez National Affordable Housing
225
Act for the appropriate jurisdiction or such other
plan as the Secretary may prescribe, of—
‘‘(A) the existing population of homeless
individuals and families for the jurisdiction of
the applicant; and
‘‘(B) the existing facilities and services de-
signed to assist such population;
‘‘(2) include a detailed description of the com-
prehensive homeless assistance under section 405 to
be established and maintained within the jurisdiction
of the applicant;
‘‘(3) provide an assessment of what is required
to establish and maintain the provision of com-
prehensive homeless assistance required under sec-
tion 405 for the jurisdiction of the applicant;
‘‘(4) set forth a multiyear strategy for estab-
lishing and maintaining the provision of comprehen-
sive homeless assistance for the jurisdiction, as de-
scribed pursuant to paragraph (2), and include time-
tables, goals, and budget estimates for accomplishing
each element of the strategy;
‘‘(5) set forth a 1-year action plan that identi-
fies all activities to be carried out with assistance
under this subtitle and demonstrates how such ac-
226
tivities will further the strategy set forth pursuant to
paragraph (4);
‘‘(6) except in the case of an application by a
State that elects under section 410(b)(1)(A) to ad-
minister grants under this subtitle, describe the
means the applicant will use to distribute grant
amounts to project sponsors and whether such
amounts will be awarded on a competitive or non-
competitive basis;
‘‘(7) contain certifications or other such forms
of proof of commitments of financial and other re-
sources from each public agency or private nonprofit
organization that has a role in establishing and
maintaining the provision of comprehensive homeless
assistance for the jurisdiction of the applicant, re-
quired under section 405;
‘‘(8) contain assurances satisfactory to the Sec-
retary that activities carried out under chapter 2
with grant amounts under this subtitle will comply
with the requirements of this subtitle;
‘‘(9) in the case of an application by a State
that elects to under section 410(b)(1)(A) administer
grants under this subtitle, describe the method of
distribution of such amounts to State recipients;
227
‘‘(10) except with respect to an application by
a State that elects to under section 410(b)(1)(A) to
administer grants under this subtitle, contain a cer-
tification from the public official responsible for sub-
mitting the comprehensive housing affordability
strategy under section 105 of the Cranston-Gonzalez
National Affordable Housing Act for the State or
unit of general local government within which a
project is to be located (or such other plan as the
Secretary may require) that the proposed project is
consistent with the approved housing strategy of
such State or unit of general local government;
‘‘(11) contain a certification that the applicant
will comply with the requirements of the Fair Hous-
ing Act, title VI of the Civil Rights Act of 1964, sec-
tion 504 of the Rehabilitation Act of 1973, and the
Age Discrimination Act of 1975, and will affirma-
tively further fair housing; and
‘‘(12) contain a certification that the applicant
will comply with the requirements of this subtitle
and other applicable laws.
‘‘(d) RELATIONSHIP TO CHAS AND CONSOLIDATED
PLAN.—In establishing requirements for applications
under this section, the Secretary shall provide that if an
applicant includes in the application information also re-
228
quired under the comprehensive housing affordability
strategy for the appropriate jurisdiction under section 105
of the Cranston-Gonzalez National Affordable Housing
Act or such other plan as the Secretary may require, the
requirements under such subsection regarding such infor-
mation shall be considered to be fulfilled by the submission
of the application.
‘‘SEC. 409. ALLOCATION AND DISTRIBUTION OF FUNDS.
‘‘(a) INSULAR AREAS.—In each fiscal year, from any
amounts appropriated for such year to carry out this sub-
title, the Secretary shall allocate amounts to insular areas
in accordance with an allocation formula established by
the Secretary.
‘‘(b) STATES AND ALLOCATION UNITS OF GENERAL
LOCAL GOVERNMENT.—
‘‘(1) FORMULA ALLOCATION.—
‘‘(A) IN GENERAL.—For each fiscal year,
of the amounts that remain after amounts are
reserved for insular areas under subsection (a),
the Secretary shall allocate assistance according
to this paragraph.
‘‘(B) FORMULA.—The Secretary shall allo-
cate amounts under this paragraph using a for-
mula established by the Secretary that allocates
amounts for allocation units of general local
229
government and States, and for Indian tribes,
in a manner that provides that the percentage
of the total amount referred to in subparagraph
(A) for any fiscal year that is allocated for any
State or allocation unit of general local govern-
ment, or for Indian tribes, is equal to the per-
centage of the total amount available for section
106 of the Housing and Community Develop-
ment Act of 1974 for the prior fiscal year that
was allocated for such State or allocation unit
of general local government, or for Indian
tribes.
‘‘(C) MINIMUM AMOUNT.—If, in any fiscal
year, allocation under the provisions of subpara-
graphs (A) and (B) would result in any alloca-
tion unit of general local government receiving
a grant of less than 0.05 percent of the
amounts appropriated to carry out this subtitle
for the fiscal year, such amount shall instead be
reallocated to the State for use under section
410(b).
‘‘(D) 70 PERCENT FOR UNITS OF GENERAL
LOCAL GOVERNMENT.—In each fiscal year, the
amount allocated under this paragraph for each
allocation unit of general local government shall
230
be the amount that results from increasing all
of the amounts determined pursuant to the pre-
ceding subparagraphs for allocation units of
general local government on a pro rata basis so
that the sum of such amounts is equal to 70
percent of the remainder of the amount appro-
priated for the year to carry out this subtitle
after amounts are allocated for insular areas
under subsection (a).
‘‘(E) 30 PERCENT FOR STATES.—In each
fiscal year, the amount allocated under this
paragraph for each State shall be the amount
that results from decreasing all of the amounts
determined pursuant to the preceding subpara-
graphs for States on a pro rata basis so that
the sum of such amounts is equal to 30 percent
of the remainder of the amount appropriated
for the year to carry out this subtitle after
amounts are allocated for insular areas under
subsection (a).
‘‘(2) GRANT AMOUNT FOR STATES AND ALLO-
CATION UNITS OF GENERAL LOCAL GOVERNMENT.—
‘‘(A) IN GENERAL.—The amount allocated
for a fiscal year under paragraph (1) for an al-
location unit of general local government or a
231
State shall be the maximum amount that the
allocation unit or State may receive under this
subtitle for the fiscal year.
‘‘(B) REDUCTION.—In any fiscal year, the
Secretary may provide a grant under this sub-
title for a State or for an allocation unit of gen-
eral local government in an amount less than
the amount allocated under paragraph (1), if
the Secretary determines based upon review of
the application of the jurisdiction under section
408 or as a result of the annual performance
review and audit under section 413, that the ju-
risdiction has failed to comply fully with the re-
quirements under section 408 or 411 or that
such action is otherwise appropriate.
‘‘(3) MINIMUM STATE ALLOCATION.—Notwith-
standing paragraph (2), if, in allocating amounts for
States under paragraph (1) for any fiscal year, the
amount allocated for the year for a State is less
than $2,000,000, the allocation for the State shall
instead be $2,000,000 and the increase shall be de-
ducted pro rata from the allocations of other States.
‘‘(c) REALLOCATIONS.—Any amounts that a State or
an allocation unit of general local government is eligible
to receive for a fiscal year under subsection (b) that are
232
not received for use in the jurisdiction, as provided by sub-
sections (a) and (b) of section 410, or that become avail-
able as a result of actions under section 413(b), shall be
added to amounts available for allocation under this sec-
tion for the succeeding fiscal year.
‘‘SEC. 410. ADMINISTRATION OF PROGRAM.
‘‘(a) GRANTS TO ALLOCATION UNITS OF GENERAL
LOCAL GOVERNMENT, INDIAN TRIBES, AND INSULAR
AREAS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graphs (2), (3), and (4), an allocation unit of gen-
eral local government, Indian tribe, or insular area
shall administer grant amounts for any fiscal year
received under section 409 by such grantees.
‘‘(2) ADMINISTRATION BY DESIGNEES OF JU-
RISDICTION.—
‘‘(A) AUTHORITY TO ELECT.—An alloca-
tion unit of general local government, Indian
tribe, or insular area may elect for any fiscal
year to designate a public agency or a private
nonprofit organization (or a consortium of such
organizations) to administer grant amounts
under section 409 for the jurisdiction.
‘‘(B) 
ELECTION
REQUIREMENTS.—The
Secretary shall prescribe the manner and time
233
for making an election under subparagraph (A),
and shall establish criteria for the approval of
agencies and organizations designated, which
shall require such agencies and organizations to
demonstrate experience of the entity in provid-
ing assistance to homeless individuals and fami-
lies in the jurisdiction.
‘‘(C) 
DIRECT
PROVISION
OF
ASSIST-
ANCE.—The Secretary may, at the request of
the jurisdiction, provide grant amounts directly
to the agency or organization designated under
this paragraph.
‘‘(3) ADMINISTRATION BY DESIGNEES OF SEC-
RETARY.—If an allocation unit of general local gov-
ernment, Indian tribe, or insular area, or (if appro-
priate) a public agency or private nonprofit organi-
zation designated by the jurisdiction under para-
graph (2), does not receive a grant under section
409 for any fiscal year because of failure to meet the
application requirements of section 408, the Sec-
retary may designate an agency or organization
meeting the criteria established under paragraph
(2)(B) to receive the grant.
‘‘(4) ADMINISTRATION BY SECRETARY.—If for
any fiscal year the Secretary determines that the
234
grant amounts allocated under section 409 for an al-
location unit of general local government, Indian
tribe, or insular area will not be used in the jurisdic-
tion as provided by the preceding provisions of this
subsection, the Secretary may administer such
amounts for the jurisdiction. The Secretary shall
prescribe such procedures and requirements as the
Secretary considers appropriate for administering
grant amounts under this paragraph.
‘‘(b) GRANTS TO STATES.—
‘‘(1) IN
GENERAL.—To receive an allocation
under section 409, each State shall elect—
‘‘(A) to administer grant amounts received
under section 409, as provided in paragraphs
(2) and (3); or
‘‘(B) to have the Secretary administer such
grant amounts for the State, as provided in
paragraph (5).
If a State elects to administer grant amounts under
subparagraph (A), the election shall be irrevocable.
‘‘(2) STATE PROGRAM.—A State administering
grant amounts as provided in paragraph (1)(A)—
‘‘(A) shall distribute the amounts remain-
ing after use in accordance with subparagraph
235
(B) to State recipients for use under this sub-
title;
‘‘(B) may use up to 15 percent of the
grant amounts received under section 409 to
carry out its own homeless assistance program
under this subtitle, except that—
‘‘(i) such amounts may only be used
for eligible activities under chapter 2 for
which States are eligible recipients under
this subtitle; and
‘‘(ii) the Secretary may increase the
percentage limitation under this subpara-
graph in the case of any State homeless
assistance program that is limited to pro-
viding assistance in areas of the State that
are not allocation units of general local
government; and
‘‘(C) may retain not to exceed 5.0 percent
of the amount to be distributed under subpara-
graph (A) to State recipients to defray the cost
of carrying out its responsibilities under this
subtitle.
Unless a State demonstrates to the satisfaction of
the Secretary that the needs for assistance for ac-
tivities under this subtitle in areas of the State that
236
are not allocation units of general local government
have been fulfilled, grant amounts received by State
may only be used to carry out activities in areas of
the State that do not include allocation units of gen-
eral local government.
‘‘(3) DISTRIBUTION OF AMOUNTS TO STATE RE-
CIPIENTS.—
‘‘(A) CHOICE
OF
ADMINISTRATION.—A
State administering grant amounts as provided
in paragraph (1)(A) shall, for each fiscal year,
afford each such recipient the options of—
‘‘(i) administering the grant amounts
on its own behalf;
‘‘(ii) designating a public agency or a
private nonprofit organization (as provided
by subsection (a)(2)) to administer the
grant amounts for the jurisdiction; or
‘‘(iii) entering into an agreement with
the State, in consultation with private non-
profit organizations providing assistance to
homeless individuals and families in the ju-
risdiction, under which the State will ad-
minister the grant amounts for the juris-
diction.
237
A recipient may choose to exercise such options
at such time and in accordance with such cri-
teria as the Secretary may prescribe.
‘‘(B) 
DIRECT
PROVISION
OF
ASSIST-
ANCE.—A State may, at the request of the
State recipient, provide grant amounts directly
to the agency or organization designated under
subparagraph (A)(ii).
‘‘(C) DISTRIBUTION
OF
AMOUNTS.—The
State shall distribute amounts to State recipi-
ents (or to agencies or organizations designated
under subparagraph (A)(ii), as appropriate) on
the basis of an application containing such in-
formation as the State may prescribe. Each ap-
plication shall evidence an intent to establish
and maintain the provision of comprehensive
homeless assistance in the jurisdiction of the re-
cipient, except that the State may waive this re-
quirement with respect to one or more proposed
activities, where the State determines that—
‘‘(i) the activities are necessary to
meet the needs of homeless individuals and
families within the jurisdiction; and
‘‘(ii) comprehensive homeless assist-
ance is not necessary, due to the nature
238
and extent of homelessness in the jurisdic-
tion.
‘‘(D) PREFERENCE
FOR
CERTAIN
STATE
RECIPIENTS.—In selecting State recipients and
making awards under subparagraph (C), the
State shall give preference to applications that
demonstrate higher relative levels of homeless
need and fiscal distress.
‘‘(4) STATE
OR
HUD
ADMINISTRATION
OF
GRANTS FOR INDIVIDUAL STATE RECIPIENTS.—If in
any fiscal year a State distributes grant amounts to
a State recipient, but the recipient fails to receive
the amounts pursuant to paragraph (3)(A), the Sec-
retary or the State, as the Secretary may provide,
may distribute the amounts to private nonprofit or-
ganizations in the jurisdiction. If the Secretary dis-
tributes the amounts, the Secretary shall deduct the
amounts distributed from the grant provided to the
State for the fiscal year.
‘‘(5) HUD ADMINISTRATION
OF
STATE
PRO-
GRAM.—If a State elects pursuant to paragraph
(1)(B) to have the Secretary administer grant
amounts for the State received under section 409,
the Secretary may distribute grant amounts to State
recipients for the State, in accordance with require-
239
ments and procedures prescribed by the Secretary.
The Secretary shall establish criteria for selecting
recipients and making awards under this paragraph,
which shall include giving preference to applications
that demonstrate higher relative levels of homeless
need and fiscal distress.
‘‘SEC. 411. CITIZEN PARTICIPATION.
‘‘(a) IN GENERAL.—Each grantee who is not a State
recipient shall ensure that citizens, and appropriate pri-
vate nonprofit organizations and other interested groups
and entities, participate fully in developing and carrying
out the program for providing assistance under this sub-
title in the jurisdiction of the recipient. The Secretary
shall prescribe such requirements to carry out this section
as the Secretary deems appropriate, which shall include
requirements applicable to the homeless assistance plan-
ning boards referred to in subsection (b) and the citizen
participation provisions of subsection (c), and the timing
of, and sequence for, carrying out the requirements of
such subsections.
‘‘(b) HOMELESS ASSISTANCE PLANNING BOARDS.—
‘‘(1) ESTABLISHMENT.—As a condition of a
grantee who is not a State recipient receiving assist-
ance under this subtitle, the chief executive officer of
the appropriate unit government in the jurisdiction
240
of the grantee shall establish and provide support
for the operation of a homeless assistance planning
board under this subsection.
‘‘(2) FUNCTIONS.—Each board under this sub-
section shall assist the recipient in—
‘‘(A) determining whether grant amounts
of the grantee should be administered by the
grantee, a public agency or private nonprofit or-
ganization, or the State or the Secretary, under
subsections (a) and (b) of section 410;
(B) developing the application under sec-
tion 408;
(C) overseeing the activities carried out
with assistance under this subtitle; and
(D) evaluating the performance of the
grantee (and recipients of the grantee) in carry-
ing out such activities.
‘‘(3) MEMBERSHIP.—Each board under this
subsection shall consist of members appointed by the
chief executive officer referred to in paragraph (1)
(subject to recommendations in accordance with
paragraph (4)), and shall include—
‘‘(A) not less than one member represent-
ing homeless individuals and families;
241
‘‘(B) not less than one member represent-
ing homeless advocates;
‘‘(C) not less than one member represent-
ing individuals and entities providing assistance
to homeless individuals and families, including
agencies of units of general local government
providing Federal assistance;
‘‘(D) not less than one member represent-
ing the business community;
‘‘(E) not less than one member represent-
ing labor;
‘‘(F) not less than one member who is a
community representative;
‘‘(G) not less than one member of the local
board established for the jurisdiction for pur-
poses of allocating amounts under the emer-
gency food and shelter program of the Federal
Emergency Management Agency;
‘‘(H) not less than one member represent-
ing the grantee; and
‘‘(I) in the case of a grantee that is a
State—
‘‘(i) one member representing the
State agency or instrumentality dealing
with mental health; and
242
‘‘(ii) one member representing the
State agency or instrumentality dealing
with education.
‘‘(4) DISTRIBUTION OF MEMBERSHIP.—Not less
than 50 percent of the members of each board under
this subsection (including the members required
under subparagraphs (A), (B), (C), and (G) of para-
graph (3)) shall be members of the board that rep-
resent homeless individuals and families, homeless
advocates, or nongovernmental entities that provide
assistance to homeless individuals and families. They
shall be individuals who were recommended for
membership by individuals and entities other than a
unit of general local government or any agency
thereof.
‘‘(5) BOARD REVIEW.—
‘‘(A) APPLICANTS.—No eligible grantee
may submit an application to the Secretary
under section 408, and no grantee may submit
to the Secretary a performance report under
subsection 413(a), unless the board under this
subsection for the jurisdiction of the grantee
has reviewed, and been provided an opportunity
to include any comments of the board in, the
application or report.