I
104TH CONGRESS
2D SESSION
H. R. 3964
To amend title IV of the Stewart B. McKinney Homeless Assistance Act
to consolidate the Federal programs for housing assistance for the home-
less into a block grant program that ensures that States and communities
are provided sufficient flexibility to use assistance amounts effectively.
IN THE HOUSE OF REPRESENTATIVES
AUGUST 2, 1996
Mr. LAZIO of New York introduced the following bill; which was referred to
the Committee on Banking and Financial Services
A BILL
To amend title IV of the Stewart B. McKinney Homeless
Assistance Act to consolidate the Federal programs for
housing assistance for the homeless into a block grant
program that ensures that States and communities are
provided sufficient flexibility to use assistance amounts
effectively.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ‘‘Homeless Housing
Programs Consolidation and Flexibility Act’’.
SEC. 2. FINDINGS AND PURPOSES.
(a) FINDINGS.—The Congress finds that—
(1) the United States faces a crisis of individ-
uals and families who lack basic affordable housing
and appropriate shelter;
(2) assistance from the Federal Government is
an important factor in the success of efforts by
State and local governments and the private sector
to address the problem of homelessness in a com-
prehensive manner;
(3) there are a multitude of Federal Govern-
ment programs to assist the homeless, including pro-
grams for elderly persons, persons with disabilities,
Native Americans, and veterans;
(4) many of the Federal programs for the
homeless have overlapping objectives, resulting in
multiple sources of Federal funding for the same or
similar purposes;
(5) while the results of Federal programs to as-
sist the homeless generally have been positive, it is
clear that there is a need for consolidation and sim-
plification of such programs to better support local
efforts;
(6) effective homelessness treatment should pro-
vide a range of housing options (including transi-
tional and permanent housing) and, while not all
homeless individuals and families attain self-suffi-
ciency and independence by utilizing transitional
housing and then permanent housing, in many cases
such individuals and families are best able to reenter
society directly through permanent supportive hous-
ing;
(7) supportive housing activities support home-
less persons in an environment that can meet their
short-term or long-term needs and prepare them to
reenter society as appropriate;
(8) homelessness should be treated as part of a
symptom of many neighborhood and community
problems, whose remedies require a holistic approach
integrating all available resources;
(9) there are many private sector entities, par-
ticularly nonprofit organizations, that have success-
fully operated homeless programs;
(10) government restrictions and regulations
may discourage and impede innovative approaches to
homelessness, such as coordination of the various
types of assistance that are required by homeless
persons; and
(11) the Federal Government has a responsibil-
ity to establish partnerships with State and local
governments and the private sector to address com-
prehensively the problems of homelessness.
(b) PURPOSE.—It is the purpose of this Act—
(1) to consolidate the existing housing pro-
grams for homeless persons under title IV of the
Stewart B. McKinney Homeless Assistance Act into
a single block grant program for housing assistance
for the homeless;
(2) to allow flexibility and creativity in rethink-
ing solutions to homelessness, including alternative
housing strategies and a competitive and much im-
proved service sector; and
(3) to provide Federal assistance to reduce
homelessness on a basis that requires recipients of
such assistance to supplement the federally provided
amounts and thereby guarantee the provision of a
certain level of housing and complimentary services
necessary to meet the needs of the homeless popu-
lation.
SEC. 3. GENERAL PROVISIONS.
Title I of the Stewart B. McKinney Homeless Assist-
ance Act (42 U.S.C. 11301 et seq.) is amended—
(1) by striking section 102;
(2) in section 103—
(A) in subsection (a), by striking ‘‘the
term ‘homeless’ or ‘homeless individual or
homeless person’ includes’’ and inserting ‘‘the
terms ‘homeless’, ‘homeless individual’ and
‘homeless person’ include’’; and
(B) in subsection (c), by striking ‘‘the term
‘homeless’ or ‘homeless individual’ does not in-
clude’’ and inserting ‘‘the terms ‘homeless’,
‘homeless individual’ and ‘homeless person’ do
not include’’; and
(3) by redesignating sections 103, 104, and 105
as sections 102, 103, and 104, respectively.
SEC. 4. RENTAL ASSISTANCE AND FLEXIBLE HOMELESS AS-
SISTANCE PROGRAM.
(a) IN GENERAL.—Title IV of the Stewart B. McKin-
ney Homeless Assistance Act (42 U.S.C. 11361 et seq.)
is amended to read as follows:
‘‘TITLE IV—BLOCK GRANTS FOR
RENTAL 
ASSISTANCE 
AND
FLEXIBLE HOMELESS ASSIST-
ANCE GRANTS
‘‘Subtitle A—General Provisions
‘‘SEC. 401. PURPOSE.
‘‘The purpose of the program under this title is to
provide assistance for rental housing for homeless persons
and promote the development of various housing assist-
ance activities for homeless persons to enable homeless
persons to live as independently as possible, including as-
sistance in the form of supportive housing, emergency
shelters, supportive services, and activities to prevent
homelessness.
‘‘SEC. 402. GRANT AUTHORITY.
‘‘(a) IN GENERAL.—The Secretary may make grants
as provided under this title to eligible grantees for States,
metropolitan cities, urban counties, and the insular areas
for carrying out eligible activities under subtitles B and
C.
‘‘(b) GRANT AMOUNTS.—Except as otherwise pro-
vided under this title, amounts for a fiscal year allocated
under section 406 shall be used as follows:
‘‘(1) INSULAR
AREAS.—Any amounts for the
fiscal year allocated under section 406(a) for an in-
sular area shall be used for a grant to the eligible
grantee for the insular area for such fiscal year.
‘‘(2) RENTAL ASSISTANCE.—Any amounts allo-
cated under section 406(b) for a State shall be used
for a grant to the State for such fiscal year.
‘‘(3) FLEXIBLE HOMELESS ASSISTANCE.—Any
amounts allocated under section 406(c) for a State
or for a metropolitan city or urban county shall be
used for a grant to the eligible grantee for the State,
or for the metropolitan city or urban county, respec-
tively, for the fiscal year.
‘‘(c) 
USE
FOR
ELIGIBLE
ACTIVITIES.—Grant
amounts provided under this title and any supplemental
funds provided under section 407 may be used only as fol-
lows:
‘‘(1) INSULAR AREA GRANTS.—In the case of a
grant under subsection (b)(1) for an insular area,
for eligible activities under subtitle C benefiting the
insular area.
‘‘(2) STATE RENTAL ASSISTANCE GRANTS.—In
the case of a grant under subsection (b)(2) to a
State, for eligible activities under subtitle B within
the State.
‘‘(3) 
FLEXIBLE
HOMELESS
ASSISTANCE
GRANTS.—In the case of a grant under subsection
(b)(3) for a State, or for a metropolitan city or
urban county, for eligible activities under subtitle C
benefiting the State, or the city or county, and car-
ried out only within nonentitlement areas of the
State or within the city or county, as applicable.
‘‘SEC. 403. ELIGIBLE GRANTEES.
‘‘For purposes of this title, the term ‘eligible grantee’
has the following meaning:
‘‘(1) GRANTS
FOR
INSULAR
AREAS.—In the
case of a grant from amounts allocated under sec-
tion 406(a) for an insular area, such term means—
‘‘(A) the insular area, or an agency, office,
or other entity of the area; or
‘‘(B) to the extent that an entity that is a
private nonprofit organization is authorized by
the government of the insular area to act as the
grantee for the area for purposes of this title,
such private nonprofit entity.
‘‘(2) GRANTS TO STATES FOR RENTAL ASSIST-
ANCE.—In the case of a grant from amounts allo-
cated under section 406(b) for a State, such term
means the State or an agency, office, or other entity
of the State.
‘‘(3) GRANTS
FOR
FLEXIBLE
HOMELESS
AS-
SISTANCE.—In the case of a grant from amounts al-
located under section 406(c) for a State, or for a
metropolitan city or urban county, such term
means—
‘‘(A) the State, or the metropolitan city or
urban county, respectively, or an agency, office,
or other entity of the State, or the city or coun-
ty; or
‘‘(B) to the extent that a private nonprofit
organization is authorized by the government of
the State, or the city or county, to act as the
grantee for the State, or the city or county, for
purposes of this title, such private nonprofit or-
ganization.
‘‘SEC. 404. USE OF GRANT AMOUNTS BY PROJECT SPON-
SORS.
‘‘(a) TRANSFER OF GRANT AMOUNTS BY GRANT-
EES.—Eligible activities assisted with grant amounts pro-
vided under this title may be carried out directly by the
grantee or by other entities serving as project sponsors,
which are provided such grant amounts by the grantee or
a subgrantee of the grantee.
‘‘(b) COMPETITIVE SELECTION CRITERIA.—To the
extent that a grantee does not use grant amounts for eligi-
ble activities carried out directly by the grantee, the grant-
ee shall select eligible activities for assistance and project
sponsors to carry out such eligible activities pursuant to
a competition based on criteria established by the Sec-
retary, which shall include—
‘‘(1) whether the project sponsor that will carry
out the activity is financially responsible;
‘‘(2) the ability of the project sponsor to carry
out the eligible activity;
‘‘(3) the need for the type of eligible activity in
the area to be served;
‘‘(4) the extent to which the amount of assist-
ance to be provided with grant amounts will be sup-
plemented with resources from other public and pri-
vate sources;
‘‘(5) the cost-effectiveness of the proposed eligi-
ble activity;
‘‘(6) the extent to the which the project sponsor
carrying out the eligible activity will coordinate with
other Federal, State, local, private and other entities
serving homeless persons in the planning and oper-
ation of the activity, to the extent practicable, and
pursuant to section 408(j)(3) will carry out the ac-
tivity in coordination and conjunction with federally
funded activities for the homeless; and
‘‘(7) such other factors as the Secretary deter-
mines to be appropriate to carry out this title in an
effective and efficient manner.
‘‘SEC. 405. COMPREHENSIVE HOUSING AFFORDABILITY
STRATEGY COMPLIANCE.
‘‘A grant under this title may be provided to an eligi-
ble grantee only if—
‘‘(1) the applicable jurisdiction for which the
grant amounts are allocated under section 406 has
submitted to the Secretary a comprehensive housing
affordability strategy under section 105 of the Cran-
ston-Gonzalez National Affordable Housing Act that
has been approved by the Secretary and is in effect
for the fiscal year for which such grant amounts are
to be provided; and
‘‘(2) the public official of such applicable juris-
diction who is responsible for submitting the com-
prehensive housing affordability strategy certifies to
the Secretary that the eligible activities to be as-
sisted with such grant amounts are or will be con-
sistent with the comprehensive housing affordability
strategy for the jurisdiction and the plans in such
strategy for addressing housing needs for homeless
families.
‘‘SEC. 406. ALLOCATION AND AVAILABILITY OF AMOUNTS.
‘‘(a) ALLOCATION
FOR INSULAR AREAS.—Of the
amount made available for grants under this title for a
fiscal year, the Secretary shall reserve for grants for each
of the insular areas amounts in accordance with an alloca-
tion formula established by the Secretary.
‘‘(b) ALLOCATION FOR RENTAL ASSISTANCE ACTIVI-
TIES.—
‘‘(1) ANNUAL
PORTION
OF
APPROPRIATED
AMOUNT AVAILABLE.—Of the amount made avail-
able for grants under this title for a fiscal year that
remains after amounts are reserved under subsection
(a), the Secretary shall allocate 70 percent for
States for use under subtitle B.
‘‘(2) 
DETERMINATION
OF
ALLOCATED
AMOUNT.—Except as provided in subsection (e), the
Secretary shall allocate amounts available for use
under subtitle B for a fiscal year so that, for each
State, the percentage of the total amount so avail-
able that is allocated for a State is equal to the per-
centage of the total amount available for section 106
of the Housing and Community Development Act of
1974 for the prior fiscal year that was allocated for
such State and for metropolitan cities and urban
counties located in such State.
‘‘(c) ALLOCATION
FOR FLEXIBLE HOMELESS AS-
SISTANCE GRANTS.—
‘‘(1) ANNUAL
PORTION
OF
APPROPRIATED
AMOUNT AVAILABLE.—Of the amount made avail-
able for grants under this title for a fiscal year that
remains after amounts are reserved under subsection
(a), the Secretary shall allocate 30 percent for use
under subtitle C. Of such amount allocated for use
under subtitle C for a fiscal year, 70 percent shall
be allocated for metropolitan cities and urban coun-
ties and 30 percent shall be allocated for States.
‘‘(2) 
DETERMINATION
OF
ALLOCATED
AMOUNT.—Except as provided in subsection (e), the
Secretary shall allocate amounts available for use
under subtitle C for a fiscal year so that—
‘‘(A) for each metropolitan city and urban
county, the percentage of the total amount allo-
cated under this subsection for cities and coun-
ties that is allocated for such city or county is
equal to the percentage of the total amount
available for the preceding fiscal year under
section 106(b) of the Housing and Community
Development Act of 1974 for grants to metro-
politan cities and urban counties that was allo-
cated for such city or county; and
‘‘(B) for each State, the percentage of the
total amount allocated under this subsection for
States that is allocated for such State is equal
to the percentage of the total amount available
for the preceding fiscal year under section
106(d) of the Housing and Community Devel-
opment Act of 1974 for grants to States that
was allocated for such State.
‘‘(d) REALLOCATION OF AMOUNTS.—Except as pro-
vided in subsection (e), the Secretary shall reallocate
amounts allocated under subsection (a), (b), or (c) as fol-
lows:
‘‘(1) UNUSED AMOUNTS.—Not less than once
during each fiscal year, the Secretary shall reallocate
any amounts allocated under this section that—
‘‘(A) are allocated for a State, metropoli-
tan city or urban county, or insular area, but
not provided to an eligible grantee for the juris-
diction because of failure to apply for a grant
under this title or failure to comply with the re-
quirements of this title;
‘‘(B) were provided to a grantee and (i) re-
captured under this title, or (ii) not utilized by
the grantee in accordance with the purposes
and objectives of the approved application of
the grantee within a reasonable time period,
which the Secretary shall establish; or
‘‘(C) are returned to the Secretary by the
time of such reallocation.
Any amounts allocated under subsection (b) that be-
come available for reallocation under this subsection
shall be reallocated only among other States for as-
sistance for use under subtitle B. Any amounts allo-
cated under subsection (c) that become available for
reallocation under this subsection shall be reallo-
cated only for assistance for use under subtitle C.
‘‘(2) FAILURE TO COMPLY WITH COMPREHEN-
SIVE HOUSING AFFORDABILITY STRATEGY REQUIRE-
MENT.—Notwithstanding paragraph (1), if, for any
fiscal year, a metropolitan city or urban county fails
to comply with the requirement under section 405(1)
during the 90-day period beginning on the date that
amounts for grants under this title for such fiscal
year first become available for allocation, the
amounts that would have been allocated under sub-
section (c) of this section for such city or county
shall be reallocated for the State in which the unit
is located, but only if the State has complied with
the requirement under section 405(1). Any amounts
that cannot be allocated for a State under the pre-
ceding sentence shall be reallocated for other metro-
politan cities and urban counties and States that
comply with such requirement and demonstrate ex-
traordinary need or large numbers of homeless per-
sons, as determined by the Secretary.
‘‘(e) MINIMUM ALLOCATION REQUIREMENT.—If, by
December 1 of any fiscal year, the amount appropriated
for grants under this title for such fiscal year is less than
$750,000,000—
‘‘(1) the Secretary shall not allocate amounts
for such fiscal year under subsections (b) and (c);
‘‘(2) subsection (d) shall not apply to amounts
for such fiscal year; and
‘‘(3) notwithstanding any other provision of this
title, the Secretary shall make grants under this title
from such amounts to States, units of general local
government, and private nonprofit organizations,
pursuant to a national competition based on the cri-
teria specified in section 425.
‘‘SEC. 407. MATCHING FUNDS REQUIREMENT.
‘‘(a) SUPPLEMENTATION BY GRANTEE.—
‘‘(1) IN GENERAL.—Each State, metropolitan
city or urban county, and insular area for which a
grant under this title is made shall—
‘‘(A) supplement the amount of the grant
provided under this title with an amount of
funds from sources other than this title, as pro-
vided under paragraph (2); and
‘‘(B) certify to the Secretary its compli-
ance with this section, which shall include only
a description of the sources and amounts of
such supplemental funds and, if applicable, the
compliance of the grantee with the require-
ments under section 421(b).
‘‘(2) AMOUNT.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), the amount provided under
this paragraph shall be an amount that is not
less than 50 percent of the amount of the grant
under this title.
‘‘(B) RENTAL ASSISTANCE.—In the case of
a grant to a State under paragraph (2) or (3)
of section 402(b)(2), the amount provided
under this paragraph shall be—
‘‘(i) if the grant exceeds $100,000,
the amount that is not less than the dif-
ference between the amount received under
the grant and $100,000; and
‘‘(ii) if the grant does not exceed
$100,000, $0.
‘‘(b) AUTHORITY
FOR
GRANTEES
TO
REQUIRE
SUPPLEMENTATION.—Each grantee under this title may
require any subgrantee or project sponsor to whom it pro-
vides such grant amounts to supplement the amount of
such grant amounts provided with an amount of funds
from sources other than this title, except that the grantee
may not require supplementation in an amount exceeding
25 percent of the amount of grant amounts provided to
the subgrantee or project sponsor. Supplemental amounts
provided by a subgrantee or project sponsor pursuant to
this subsection shall not be considered supplemental
amounts for purposes of any grantee complying with the
requirement under subsection (a).
‘‘(c) USE.—Any supplemental funds made available
in compliance with this section shall be available only to
carry out eligible activities (1) under the subtitle B, if the
grant amounts are available only for such activities, or (2)
under subtitle C, if the grant amounts are available only
for such activities.
‘‘(d) SUPPLEMENTAL FUNDS.—In determining the
amount of supplemental funds provided in accordance with
this section, the following amounts may be included:
‘‘(1) The value of any donated material or
building.
‘‘(2) The value of any lease on a building.
‘‘(3) The proceeds from bond financing validly
issued by a State or unit of general local govern-
ment, agency, or instrumentality thereof, and repay-
able with revenues derived from the activity assisted
under this title, except that not more than 25 per-
cent of the supplemental amounts required under
this section may result from this paragraph.
‘‘(4) The amount of any salary paid to staff to
carry out a program for eligible activities under sub-
title B or C.
‘‘(5) The cost or value of any donated good or
services (including supportive services provided, but
not including the value of any time or services con-
tributed by volunteers).
‘‘SEC. 408. PROGRAM REQUIREMENTS.
‘‘(a) APPLICATIONS.—
‘‘(1) FORM AND PROCEDURE.—The Secretary
may make a grant under this title only pursuant to
an application for a grant submitted by an eligible
grantee in the form and in accordance with the pro-
cedures established by the Secretary. The Secretary
may not give preference or priority to any applica-
tion on the basis that the application was submitted
by any particular type of eligible grantee.
‘‘(2) CONTENTS.—The Secretary shall require
that applications contain at a minimum the following
information:
‘‘(A) GRANTS FOR RENTAL ASSISTANCE.—
In the case of an application for a grant avail-
able for use for activities under subtitle B—
‘‘(i) a description of the rental assist-
ance activities under subtitle B to be as-
sisted; and
‘‘(ii) a description of the entities that
will carry out such activities and the pro-
grams for carrying out such activities.
‘‘(B) GRANTS
FOR
FLEXIBLE
HOMELESS
ASSISTANCE.—In the case of an application for
a grant available for use for activities under
subtitle C—
‘‘(i) a description of the eligible activi-
ties to be assisted, to the extent available
at the time;
‘‘(ii) in the case of a grant for a facil-
ity assisted under paragraph (1) or (2) of
section 421(a), assurances satisfactory to
the Secretary that the facility will be com-
ply with the requirement under section
423(e)(1);
‘‘(iii) in the case of a grant for a sup-
portive housing facility assisted under this
title that does not receive assistance under
either such paragraph, annual assurances
during the period specified in the applica-
tion that the facility will be operated for
the purpose specified in the application for
such period; and
‘‘(iv) in the case of a grant for a sup-
portive housing facility, reasonable assur-
ances that the project sponsor will own or
have control of a site for not later than the
expiration of the 12-month period begin-
ning upon notification of an award of
grant assistance, unless the application
proposes providing supportive housing as-
sisted under section 421(a)(3) or housing
that will eventually be owned or controlled
by the families and individuals served; ex-
cept that a project sponsor may obtain
ownership or control of a suitable site dif-
ferent from the site specified in the appli-
cation.
‘‘(C) ALL GRANTS.—In the case of an ap-
plication for any grant under this title—
‘‘(i) a description of the size and char-
acteristics of the population that will be
served by the eligible activities assisted
with grant amounts;
‘‘(ii) a description of the public and
private resources that are expected to be
made available in connection with grant
amounts provided;
‘‘(iii) a description of the process to
be used in compliance with section 404(b)
to select eligible activities to be assisted
and project sponsors; and
‘‘(iv) a certification that the applicant
will comply with the requirements of the
Fair Housing Act, title VI of the Civil
Rights Act of 1964, section 504 of the Re-
habilitation Act of 1973, and the Age Dis-
crimination Act of 1975, and will affirma-
tively further fair housing.
‘‘(b) REQUIRED AGREEMENTS.—The Secretary may
not provide a grant under this title for any applicant un-
less the applicant agrees—
‘‘(1) to ensure that the eligible activities carried
out with grant amounts will be carried out in ac-
cordance with the provisions of this title;
‘‘(2) to conduct an ongoing assessment of the
supportive services required by homeless persons as-
sisted by the eligible activities and the availability of
such services to such persons;
‘‘(3) in the case of grant amounts to be used
under subtitle C for a supportive housing facility or
an emergency shelter, to ensure the provision of
such residential supervision as the Secretary deter-
mines is necessary to facilitate the adequate provi-
sion of supportive services to the residents and users
of the facility or shelter;
‘‘(4) to monitor and report under section 431 to
the Secretary on the progress of the eligible activi-
ties carried out with grant amounts;
‘‘(5) to develop and implement procedures to
ensure (A) the confidentiality of records pertaining
to any individual provided family violence prevention
or treatment services through any activities assisted
with grant amounts, and (B) that the address or lo-
cation of any family violence shelter facility assisted
with grant amounts will not be made public, except
with written authorization of the person or persons
responsible for the operation of such facility;
‘‘(6) to the maximum extent practicable, to in-
volve homeless persons and families, through em-
ployment, volunteer services, or otherwise, in carry-
ing out eligible activities assisted with grant
amounts; and
‘‘(7) to comply with such other terms and con-
ditions as the Secretary may establish to carry out
this title in an effective and efficient manner.
‘‘(c) OCCUPANCY CHARGE.—Each homeless person or
family residing in a dwelling unit assisted under subtitle
B or C or in a transitional housing facility assisted under
subtitle C may be required to pay an occupancy charge
in an amount determined by the grantee providing the as-
sistance, 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 person or family. Occupancy
charges paid may be reserved, in whole or in part, to assist
residents in moving to permanent supportive housing.
‘‘(d) FLOOD PROTECTION STANDARDS.—Flood pro-
tection standards applicable to housing acquired, rehabili-
tated, constructed, or assisted with grant amounts pro-
vided under this title shall be no more restrictive than the
standards applicable under Executive Order No. 11988
(42 U.S.C. 4321 note; relating to floodplain management)
to the other programs in effect under this title imme-
diately before the enactment of the Homeless Housing
Programs Consolidation and Flexibility Act.
‘‘(e) PARTICIPATION OF HOMELESS INDIVIDUALS.—
The Secretary shall, by regulation, require each grantee
to ensure that each project sponsor assisted by the grantee
provides for the participation of not less than 1 homeless
person or former homeless person on the board of direc-
tors or other equivalent policymaking entity of the project
sponsor, to the extent that such sponsor considers and
makes policies and decisions regarding any activity or fa-
cility, supportive services, or assistance provided with
grant amounts under this title. The Secretary shall pro-
vide that a grantee may grant waivers to project sponsors
unable to meet the requirement under the preceding sen-
tence if the sponsor agrees to otherwise consult with home-
less or formerly homeless person in considering and mak-
ing such policies and decisions.
‘‘(f) LIMITATION
ON USE
OF FUNDS.—No grant
amounts received under this title (or any funds provided
under section 407 or otherwise to supplement such grants)
may be used to replace other State or local funds pre-
viously used, or designated for use, to assist homeless per-
sons.
‘‘(g) LIMITATION ON ADMINISTRATIVE EXPENSES.—
Notwithstanding any other provision of this title, of any
grant amounts under this title used to carry out eligible
activities, the grantee or the project sponsor may use an
amount not exceeding 5 percent for administrative pur-
poses.
‘‘(h) HOUSING QUALITY.—
‘‘(1) REQUIREMENT.—Assistance may not be
provided with grant amounts made available for use
under this title for any dwelling unit, supportive
housing facility, or emergency shelter that fails to
comply with the housing quality standards applicable
under paragraph (2) in the jurisdiction in which the
housing is located, unless the deficiency is promptly
corrected and the project sponsor verifies the correc-
tion.
‘‘(2) APPLICABLE
STANDARDS.—The housing
quality standards applicable under this subsection to
a dwelling unit, supportive housing facility, or emer-
gency shelter shall be—
‘‘(A) in the case of a unit, facility, or shel-
ter located in a jurisdiction which has in effect
laws, regulations, standards, or codes regarding
habitability of such units, facilities, or shelters
that provide protection to residents of the dwell-
ings that is equal to or greater than the protec-
tion provided under the housing quality stand-
ards established under paragraph (3), such ap-
plicable laws, regulations, standards, or codes;
or
‘‘(B) in the case of a unit, facility, or shel-
ter located in a jurisdiction which does not have
in effect laws, regulations, standards, or codes
described in subparagraph (A), the housing
quality standards established under paragraph
(3).
‘‘(3) FEDERAL
HOUSING
QUALITY
STAND-
ARDS.—The Secretary shall establish housing quality
standards under this paragraph that ensure that
dwelling units, supportive housing facilities, and
emergency shelters assisted under this title are safe,
clean, and healthy. Such standards shall include re-
quirements relating to habitability, including mainte-
nance, health and sanitation factors, condition, and
construction of dwellings. The Secretary shall dif-
ferentiate between major and minor violations of
such standards and may establish separate stand-
ards for dwelling units, supportive housing facilities,
and emergency shelters.
‘‘(i) TERMINATION OF ASSISTANCE.—If a person or
family (not including residents of an emergency shelter)
who receives assistance under this title under a program
assisted with grant amounts under this title violates pro-
gram requirements, the project sponsor may terminate as-
sistance in accordance with a formal process established
by such sponsor that recognizes the rights of individuals
receiving such assistance to due process of law, which may
include a hearing.
‘‘(j) COORDINATION WITH HOMELESS PROGRAMS.—
‘‘(1) PURPOSE.—The purpose of the consulta-
tion and coordination required under this subsection
is to provide various services, activities, and assist-
ance for homeless persons and families in an effi-
cient, effective, and targeted manner designed to
meet the comprehensive needs of the homeless.
‘‘(2) COORDINATION BY FEDERAL AGENCIES.—
The Secretary of Housing and Urban Development,
the Secretary of Health and Human Services, the
Secretary of Labor, the Secretary of Education, the
Secretary of Veterans Affairs, and the Secretary of
Agriculture shall consult and coordinate, and may
establish any requirements necessary, to ensure that
assistance for federally funded activities for the
homeless provided by such Secretary is made avail-
able, to the greatest extent practicable, in conjunc-
tion and coordination with assistance for other
federally funded activities for the homeless and with
assistance under this title.
‘‘(3) REQUIREMENTS
FOR
HOUSING
ASSIST-
ANCE.—The Secretary shall establish such require-
ments as the Secretary considers necessary to ensure
that grant amounts provided under this title are
used by grantees and project sponsors, to the great-
est extent practicable, in coordination and in con-
junction with federally funded activities for the
homeless.
‘‘(4) DEFINITION.—For purposes of this sub-
section, the term ‘federally funded activities for the
homeless’ means activities to assist homeless persons
or homeless families that are funded (in whole or in
part) with amounts provided by the Federal Govern-
ment (other than amounts provided under this title)
and includes—
‘‘(A) the programs for health care under
sections 340 and part C of title V of the Public
Health Service Act;
‘‘(B) the programs for education, training
and community services under title VII of the
Stewart B. McKinney Homeless Assistance Act;
‘‘(C) food assistance for homeless persons
and families through the food programs under
the Food Stamp Act of 1977 and the Emer-
gency Food Assistance Act of 1983;
‘‘(D) the job training, housing, and medi-
cal programs for homeless veterans of the De-
partment of Veterans Affairs;
‘‘(E) the job corps centers for homeless
families program under section 433A of the Job
Training Partnership Act
‘‘(F) the program for preventive services
for children of homeless families or families at
risk of homelessness under title III of the Child
Abuse Prevention and Treatment Act;
‘‘(G) the programs under the Runaway
and Homeless Youth Act; and
‘‘(H) assistance for homeless persons and
families under the aid to families with depend-
ent children and supplemental security income
programs under part A of title IV and title
XVI, respectively, of the Social Security Act).
‘‘(5) COMPANION SERVICES BLOCK GRANTS IN
CASES OF FAILURE TO COMPLY.—
‘‘(A) IN GENERAL.—If, for any fiscal year,
the Secretary of Housing and Urban Develop-
ment determines that adequate coordination has
not taken place to ensure that assistance for
federally funded activities for the homeless is
made available in conjunction and coordination
with assistance under this title (as required
under paragraph (2)), and the Interagency
Council on the Homeless concurs in the deter-
‘‘(3) REQUIRED
USE
FOR
HOUSING
ACTIVI-
TIES.—Of the aggregate of any grant amounts pro-
vided to a State for a fiscal year for use under this
subtitle and the supplemental amounts provided for
such fiscal year by the State in accordance with sec-
tion 407, the State shall ensure that an amount that
is not less than such grant amount (less any amount
used pursuant to subsection (c)) is used only for
rental assistance payments.
‘‘(b) USE THROUGH NONPROFIT ORGANIZATIONS.—
A State that receives grant amounts for a fiscal year for
use under this subtitle may, pursuant to section 404, pro-
vide such amounts to units of general local government
and private nonprofit organizations for use in accordance
with this subtitle, except that the State shall ensure that
more than 50 percent of the amounts received by the State
for the fiscal year are used for providing rental assistance
through private nonprofit organizations.
‘‘(c) ADMINISTRATIVE FEE.—To the extent provided
in section 408(g), grant amounts provided for rental as-
sistance under this subtitle may be used by the project
sponsor providing such assistance for costs of administer-
ing such assistance.
‘‘(d) TARGETING
POPULATIONS
WITH
SPECIAL
NEEDS.—To the maximum extent practicable, a State