cost of establishing and operating the board re-
ferred to in section 411(b).
Not more than 5 percent of any amounts provided
to a recipient under this subtitle for a fiscal year
may be used for activities under this paragraph.
‘‘(2) CAPACITY BUILDING FOR NONPROFIT OR-
GANIZATIONS.—For building the capacity of private
nonprofit organizations to participate in the com-
prehensive homeless assistance system of the recipi-
ent, except that not more than 2 percent of any
amounts provided to a recipient under this subtitle
for a fiscal year may be used for activities under this
paragraph.
‘‘(b) PROVISION OF ADMINISTRATIVE EXPENSES FOR
CERTAIN ENTITIES.—
‘‘(1) PROVISION OF AMOUNTS.—Any recipient
under paragraph (2) shall make available, to defray
the administrative expenses of the designee or the
State, not more than 5 percent from amounts eligi-
ble for this purpose under subsection (a)(1).
‘‘(2) RECIPIENTS
COVERED.—The recipients
under this paragraph shall be—
‘‘(A) any allocation unit of general local
government, Indian Tribe, or insular area, that
designates a public agency or a private non-
profit organization under section 410(a)(2);
‘‘(B) any State recipient that designates a
public agency or a private nonprofit organiza-
tion under section 410(b)(3)(A)(ii); and
‘‘(C) any State recipient that enters into
an agreement under section 410(b)(3)(A)(iii)
with a State.
‘‘SEC. 437. OTHER APPROVED ACTIVITIES.
‘‘The Secretary, in cooperation with grantees, recipi-
ents, and other appropriate parties, shall develop addi-
tional activities to carry out the purposes of this subtitle.
A recipient may use grants amounts under this subtitle
to carry out any such activities developed and approved
by the Secretary.
‘‘Subtitle 
B—Other 
Permanent
Housing 
Assistance 
Programs
for the Homeless’’.
SEC. 402. REGULATIONS.
Not later than 60 days after the date of enactment
of this Act, the Secretary of Housing and Urban Develop-
ment shall by notice establish any requirements necessary
to carry out the provisions contained in the amendments
made by this subtitle. Based on such notice, the Secretary
shall issue regulations to carry out such provisions not
later than 12 months after the date of the enactment of
this Act.
SEC. 403. TRANSITION PROVISIONS.
(a) IN GENERAL.—Notwithstanding the provisions of
subtitle A of title IV of the Stewart B. McKinney Home-
less Assistance Act (as amended by this subtitle), during
fiscal year 1995, the Secretary of Housing and Urban De-
velopment shall allocate homeless assistance made avail-
able under title IV of the Stewart B. McKinney Act in
accordance with the regulations for such title in effect im-
mediately before the enactment of this Act. Of any
amounts appropriated to carry out section 2 of the HUD
Demonstration Act of 1993 in fiscal year 1995, the Sec-
retary may use not more than 10 percent for providing
technical assistance to assist recipients under subtitle A
of title IV of the Stewart B. McKinney Homeless Assist-
ance Act (as amended by this subtitle) to establish a pro-
gram for providing homeless assistance in accordance with
the provisions of such subtitle.
(b) REPORT ON SINGLE ROOM OCCUPANCY ASSIST-
ANCE.—Not later than July 1, 1995, the Secretary shall
submit a report to the Congress evaluating the effective-
ness of combining the programs for assistance for single
room occupancy dwellings under sections 451 and 452 of
the Stewart B. McKinney Homeless Assistance Act (as so
redesignated and amended by this Act) into the program
for assistance under subtitle A of such Act and, if effec-
tive, describing how to provide such assistance under the
program under such subtitle A.
Subtitle B—Other Housing Assist-
ance Programs for the Homeless
Under McKinney Act
SEC. 411. SECTION 8 ASSISTANCE FOR SINGLE ROOM OCCU-
PANCY DWELLINGS.
(a) AUTHORIZATION OF APPROPRIATIONS.—Section
451(a) of the Stewart B. McKinney Homeless Assistance
Act (42 U.S.C. 11401(a)), as so redesignated by section
401(3) of this Act, is amended to read as follows:
‘‘(a) INCREASE IN BUDGET AUTHORITY.—The budg-
et authority available under section 5(c) of the United
States Housing Act of 1937 for assistance under section
8(e)(2) of such Act (as in effect immediately before Octo-
ber 1, 1991) is authorized to be increased by
$200,000,000 on or after October 1, 1994, and by
$206,000,000 on or after October 1, 1995, and by such
sums as may be necessary on or after October 1, 1996.’’.
(b) PROGRAM CHANGES.—Section 451 of the Stewart
B. McKinney Homeless Assistance Act (42 U.S.C.
11401(a)), as so redesignated by section 401(3) of this
Act, is amended—
(1) in the second sentence of subsection (c), in
the matter preceding paragraph (1), by striking
‘‘containing’’ and inserting the following: ‘‘for the
provision of assistance under this section that is spe-
cifically provided for in the comprehensive homeless
assistance described in the application under section
408 of the relevant eligible grantee and that con-
tains’’; and
(2) in subsection (j)(1), by inserting ‘‘recipient
under subtitle A,’’ after ‘‘authority,’’.
SEC. 412. SECTION 8 ASSISTANCE FOR SHELTER PLUS CARE
SINGLE ROOM OCCUPANCY DWELLINGS.
Title IV of the Stewart B. McKinney Homeless As-
sistance Act (42 U.S.C. 11361 et seq.) is amended by in-
serting after section 451, as so redesignated by section
401(3) of this Act, the following new section:
‘‘SEC. 452. SECTION 8 ASSISTANCE FOR SHELTER PLUS
CARE SINGLE ROOM OCCUPANCY DWELL-
INGS.
‘‘(a) PURPOSE.—The purpose of the program under
this section is to provide assistance for the moderate reha-
bilitation of single room occupancy housing to be made
available for rental, in connection with supportive services
funded from sources other than this section, to homeless
persons with disabilities (primarily persons who are seri-
ously mentally ill, have chronic problems with alcohol,
drugs, or both, or have acquired immunodeficiency syn-
drome and related diseases) and the families of such
persons.
‘‘(b) MODERATE REHABILITATION ASSISTANCE.—
The Secretary may use amounts made available to carry
out this section for moderate rehabilitation of single room
occupancy housing described in section 8(n) of the United
States Housing Act of 1937 for occupancy by eligible per-
sons in accordance with this section. Such amounts may
be used in connection with the moderate rehabilitation of
efficiency units if the building owner agrees to pay the
additional cost of rehabilitating and operating the effi-
ciency units.
‘‘(c) FUNDING LIMITATIONS.—
‘‘(1) TARGETED POPULATIONS.—To the maxi-
mum extent practicable, the Secretary shall reserve
not less than 50 percent of all amounts made avail-
able to carry out this section for homeless individ-
uals who are seriously mentally ill or have chronic
problems with alcohol, drugs, or both.
‘‘(2) GEOGRAPHICAL LIMITATION.—Of the as-
sistance made available under this section for any
fiscal year, not more than 10 percent may be used
for programs located within any one unit of general
local government.
‘‘(d) SUPPORTIVE SERVICES REQUIREMENTS.—
‘‘(1) REQUIREMENT OF MATCHING AMOUNTS.—
Each recipient of assistance under this section shall
supplement the assistance provided under this sec-
tion with an equal amount of funds for supportive
services from sources other than this section. Each
recipient shall certify to the Secretary its compliance
with this paragraph, and shall include with the cer-
tification a description of the sources and amounts
of such supplemental funds.
‘‘(2) 
DETERMINATION
OF
MATCHING
AMOUNTS.—In calculating the amount of supple-
mental funds provided under this section, a recipient
may include the value of any lease on a building, any
salary paid to staff to carry out the program of the
recipient, and the value of the time and services con-
tributed by volunteers to carry out the program of
the recipient at a rate determined by the Secretary.
‘‘(3) RECAPTURE.—If the supportive services
and funding for the supportive services required by
this subsection are not provided by a recipient, the
Secretary may recapture any unexpended housing
assistance provided under this section to the recipi-
ent.
‘‘(e) CONTRACT REQUIREMENTS.—Each contract for
annual contributions entered into by the Secretary with
a public housing agency to obligate budget authority made
available to carry out this section shall—
‘‘(1) commit the Secretary to make the author-
ity available to the public housing agency for an ag-
gregate period of 10 years, and require that any
amendments increasing the authority shall be avail-
able for the remainder of such 10-year period;
‘‘(2) provide the Secretary with the option to
renew the contract for an additional period of 10
years, subject to the availability of authority;
‘‘(3) provide that, notwithstanding any other
provision of law, first priority for occupancy of hous-
ing rehabilitated under this section shall be given to
homeless persons; and
‘‘(4) require installation in the housing assisted
of a sprinkler system that protects all major spaces,
hard-wired smoke detectors, and any other fire safe-
ty improvements as may be required by State or
local law.
For purposes of this subsection, the term ‘major spaces’
means hallways, large common areas, and other areas
specified in local fire, building, or safety codes.
‘‘(f) APPLICATIONS.—
‘‘(1) IN GENERAL.—An application for rental
housing assistance under this section shall be sub-
mitted by an applicant in such form and in accord-
ance with such procedures as the Secretary shall
establish.
‘‘(2) MINIMUM
CONTENTS.—The 
Secretary
shall require that an application identify the need
for the assistance in the community to be served and
shall contain at a minimum—
‘‘(A) a request for housing assistance
under this section specifying the number of
units requested and the amount of necessary
budget authority;
‘‘(B) a description of the size and charac-
teristics of the population of eligible persons;
‘‘(C) an identification of the need for the
program in the community to be served;
‘‘(D) the identity of the proposed service
provider or providers (which may be, or include,
the applicant) and a statement of the qualifica-
tions of the provider or providers;
‘‘(E) a description of the supportive serv-
ices that the applicant proposes to assure will
be available for eligible persons;
‘‘(F) a description of the resources that
are expected to be made available to provide the
supportive services required by subsection (d);
‘‘(G) a description of the mechanisms for
developing a housing and supportive services
plan for each person and for monitoring each
person’s progress in meeting that plan;
‘‘(H) reasonable assurances satisfactory to
the Secretary that the supportive services will
be provided for the full term of the housing as-
sistance under this section and a certification
from the applicant that it will fund the support-
ive services itself if the planned resources do
not become available for any reason;
‘‘(I) a certification by the public official re-
sponsible for submitting the comprehensive
housing affordability strategy under section 105
of the Cranston-Gonzalez National Affordable
Housing Act that the proposed activities are
consistent with the approved housing strategy
of the unit of general local government within
which housing assistance under this section will
be provided; and
‘‘(J) identification of the specific struc-
tures that the recipient is proposing for assist-
ance.
‘‘(g) SELECTION CRITERIA.—The Secretary shall es-
tablish selection criteria for a national competition for as-
sistance under this section which shall include—
‘‘(1) the ability of the applicant to develop and
operate the proposed assisted housing and support-
ive services program, taking into account the quality
of any ongoing program of the applicant;
‘‘(2) geographic diversity among the projects to
be assisted;
‘‘(3) the need for a program providing housing
assistance and supportive services for eligible per-
sons in the area to be served;
‘‘(4) the quality of the proposed program for
providing supportive services and housing assistance;
‘‘(5) the extent to which the proposed funding
for the supportive services is or will be available;
‘‘(6) the extent to which the project would meet
the needs of the homeless persons proposed to be
served by the program;
‘‘(7) the extent to which the program integrates
program recipients into the community served by the
program;
‘‘(8) the cost-effectiveness of the proposed pro-
gram; and
‘‘(9) such other factors as the Secretary speci-
fies in regulations to be appropriate for purposes of
carrying out the program established by this section
in an effective and efficient manner.
‘‘(h) PARTICIPATION OF HOMELESS INDIVIDUALS.—
The Secretary shall, by regulation, require each recipient
of assistance under this section to provide for the consulta-
tion and participation of not less than one homeless indi-
vidual or former homeless individual on the board of direc-
tors or other equivalent policymaking entity of the recipi-
ent, to the extent that such entity considers and makes
policies and decisions regarding any housing assisted
under this section or services for such housing. The Sec-
retary may grant waivers to recipients unable to meet the
requirement under the preceding sentence if the recipient
agrees to otherwise consult with homeless or formerly
homeless individuals in considering and making such poli-
cies and decisions.
‘‘(i) REQUIRED AGREEMENTS.—The Secretary may
not approve assistance under this section for an applicant
unless the applicant agrees—
‘‘(1) to operate the proposed program in ac-
cordance with the provisions of this section;
‘‘(2) to conduct an ongoing assessment of the
housing assistance and supportive services required
by the participants in the program;
‘‘(3) to ensure the adequate provision of sup-
portive services to the participants in the program;
‘‘(4) to comply with such other terms and con-
ditions as the Secretary may establish for purposes
of carrying out the program in an effective and effi-
cient manner; and
‘‘(5) to the maximum extent practicable, to in-
volve homeless individuals and families, through em-
ployment volunteer services, or otherwise, in con-
structing or rehabilitating housing assisted under
this section and in providing services required under
this section.
‘‘(j) HOUSING STANDARDS AND RENT REASONABLE-
NESS.—
‘‘(1) STANDARDS
REQUIRED.—The Secretary
shall require that—
‘‘(A) before any assistance may be pro-
vided to or on behalf of a person, each unit as-
sisted under this section shall be inspected by
the applicant directly or by another entity, in-
cluding the local public housing agency, to de-
termine that the unit meets the housing quality
standards under section 8 of the United States
Housing Act of 1937 and that the occupancy
charge for the dwelling unit is reasonable; and
‘‘(B) the recipient shall make at least an-
nual inspections of each unit assisted under this
section during the term of the contract for such
assistance.
‘‘(2) PROHIBITION.—No assistance may be pro-
vided under this section for a dwelling unit (A) for
which the occupancy charge is not reasonable, or (B)
which fails to meet the housing standards, unless the
owner promptly corrects the deficiency and the re-
cipient verifies the correction.
‘‘(k) TENANT RENT.—Each tenant of a dwelling unit
assisted under this section shall pay as rent an amount
determined in accordance with the provisions of section
3(a)(1) of the United States Housing Act of 1937.
‘‘(l) ADMINISTRATIVE FEES.—From amounts made
available to carry out this section, the Secretary shall
make amounts available to pay the entity administering
the housing assistance an administrative fee in an amount
determined appropriate by the Secretary for the costs of
administering the housing assistance.
‘‘(m) OCCUPANCY.—
‘‘(1) OCCUPANCY AGREEMENT.—The occupancy
agreement between a tenant and an owner of a
dwelling unit assisted under this section shall be for
at least one month.
‘‘(2) VACANCY PAYMENTS.—If an eligible per-
son vacates a dwelling unit assisted under this sec-
tion before the expiration of the occupancy agree-
ment, no assistance payment may be made with re-
spect to the unit after the month that follows the
month during which the unit was vacated, unless it
is occupied by another eligible person.
‘‘(n) TERMINATION OF ASSISTANCE.—
‘‘(1) AUTHORITY.—If an eligible individual who
receives assistance under this section violates pro-
gram requirements, the recipient may terminate as-
sistance in accordance with the process established
pursuant to paragraph (2).
‘‘(2) PROCEDURE.—In terminating assistance
under this paragraph, the recipient shall provide a
formal process that recognizes the rights of individ-
uals receiving such assistance to due process of law.
‘‘(o) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
‘‘(1) The term ‘acquired immunodeficiency syn-
drome and related diseases’ has the meaning given
such term in section 853 of the Cranston-Gonzalez
National Affordable Housing Act.
‘‘(2) The term ‘applicant’ means a State, unit
of general local government, Indian tribe, or public
housing agency.
‘‘(3) The term ‘eligible person’ means a home-
less person with disabilities (primarily persons who
are seriously mentally ill, have chronic problems with
alcohol, 
drugs, 
or 
both, 
or 
have 
acquired
immunodeficiency syndrome and related diseases)
and the family of such a person.
‘‘(4) The term ‘Indian tribe’ has the meaning
given such term in section 102 of the Housing and
Community Development Act of 1974.
‘‘(5) The term ‘nonprofit organization’ has the
meaning given such term by section 104 of the
Cranston-Gonzalez National Affordable Housing
Act, and includes community mental health centers
established as public nonprofit organizations.
‘‘(6) The term ‘person with disabilities’ has the
meaning given such term in section 811 of the Cran-
ston-Gonzalez National Affordable Housing Act.
‘‘(7) The term ‘public housing agency’ has the
meaning given such term in section 3(b) of the
United States Housing Act of 1937.
‘‘(8) The term ‘recipient’ means an applicant
approved for participation in the program to provide
assistance under this section.
‘‘(9) The term ‘Secretary’ means the Secretary
of Housing and Urban Development.
‘‘(10) The term ‘seriously mentally ill’ means
having a severe and persistent mental or emotional
impairment that seriously limits a person’s ability to
live independently.
‘‘(11) The term ‘State’ means each of the sev-
eral States, the District of Columbia, the Common-
wealth of Puerto Rico, the Commonwealth of the
Northern Mariana Islands, the Virgin Islands,
Guam, American Samoa, and any other territory or
possession of the United States.
‘‘(12) The term ‘supportive services’ means as-
sistance that the Secretary determines (A) addresses
the special needs of eligible persons; and (B) pro-
vides appropriate services or assists such persons in
obtaining appropriate services, including health care,
mental health services, substance and alcohol abuse
services, child care services, case management serv-
ices, counseling, supervision, education, job training,
and other services essential for achieving and main-
taining independent living. Inpatient acute hospital
care shall not qualify as a supportive service.
‘‘(13) The term ‘unit of general local govern-
ment’ has the meaning given such term in section
102 of the Housing and Community Development
Act of 1974.
‘‘(p) AUTHORIZATION
OF APPROPRIATIONS.—For
purposes of providing assistance under this section, there
are authorized to be appropriated $75,000,000 for fiscal
year 1995, $75,000,000 for fiscal year 1996, and such
sums as may be necessary for fiscal year 1997.’’.
SEC. 413. RURAL HOMELESSNESS GRANT PROGRAM.
(a) AUTHORIZATION OF APPROPRIATIONS.—Section
453(l)(1) of the Stewart B. McKinney Homeless Assist-
ance Act (42 U.S.C. 11408(l)(1)), as so redesignated by
section 401(3) of this Act, is amended to read as follows:
‘‘(1) IN GENERAL.—There are authorized to be
appropriated to carry out this section $32,197,800
for fiscal year 1995, $33,163,734 for fiscal year
1996, and such sums as may be appropriated for fis-
cal year 1997.’’.
(b) 
TRANSFER
TO
DEPARTMENT
OF
AGRI-
CULTURE.—Section 453 of the Stewart B. McKinney
Homeless Assistance Act, as so redesignated by section
401(3) of this Act, is amended—
(1) in subsection (a), by striking ‘‘Secretary of
Housing and Urban Development’’ and inserting
‘‘Secretary of Agriculture’’; and
(2) in subsection (k), by striking paragraph (3)
and inserting the following new paragraph:
‘‘(3) The term ‘Secretary’ means the Secretary
of Agriculture.’’.
SEC. 414. STRATEGY TO ELIMINATE UNFIT TRANSIENT FA-
CILITIES.
Section 825(b) of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 11301 note) is amend-
ed—
(1) in paragraph (2), by striking ‘‘and’’ at the
end;
(2) in paragraph (3), by striking the period at
the end and inserting ‘‘; and’’; and
(3) by adding at the end the following new
paragraph:
‘‘(4) that States and units of general local gov-
ernment shall eliminate the use of unfit transient fa-
cilities as housing for homeless families with children
not later than July 1, 1997, in the manner provided
under the strategy.’’.
SEC. 415. CLERICAL AMENDMENT.
The table of contents in section 101(b) of the Stewart
B. McKinney Homeless Assistance Act is amended by
striking the items relating to title IV and inserting the
following new items:
‘‘TITLE IV—HOUSING ASSISTANCE
‘‘Subtitle A—Flexible Grant Program
‘‘CHAPTER 1—GENERAL PROVISIONS
‘‘Sec. 401. Purposes.
‘‘Sec. 402. Authorization of appropriations.
‘‘Sec. 403. Definitions.
‘‘Sec. 404. Provision of grants.
‘‘Sec. 405. Comprehensive homeless assistance system.
‘‘Sec. 406. Matching requirements.
‘‘Sec. 407. Responsibilities of grantees and project sponsors.
‘‘Sec. 408. Application.
‘‘Sec. 409. Allocation and distribution of funds.
‘‘Sec. 410. Administration of program.
‘‘Sec. 411. Citizen participation.
‘‘Sec. 412. Applicability of other provisions.
‘‘Sec. 413. Reports, reviews, and audits.
‘‘Sec. 414. Nondiscrimination in programs and activities.
‘‘Sec. 415. Consultation.
‘‘Sec. 416. Records, reports, and audits.
‘‘Sec. 417. Reports to Congress.
‘‘CHAPTER 2—ELIGIBLE ACTIVITIES
‘‘Sec. 431. Homelessness prevention.
‘‘Sec. 432. Emergency shelter.
‘‘Sec. 433. Supportive housing for the homeless.
‘‘Sec. 434. Safe havens for homeless individuals.
‘‘Sec. 435. Shelter plus care.
‘‘Sec. 436. Administrative and capacity-building expenses.
‘‘Sec. 437. Other approved activities.
‘‘Subtitle B—Other Permanent Housing Assistance Programs for the
Homeless’’.
‘‘Sec. 451. Section 8 assistance for single room occupancy dwellings.
‘‘Sec. 452. Section 8 assistance for shelter plus care single room occupancy
dwellings.
‘‘Sec. 453. Rural homelessness grant program.
‘‘Sec. 454. Use of FMHA inventory for transitional housing for homeless
persons and for turnkey housing.’’.
Subtitle C—Miscellaneous
Homeless Housing Provisions
SEC. 421. INNOVATIVE HOMELESS PROGRAM.
(a) AUTHORIZATION OF APPROPRIATIONS.—Section
2(f) of the HUD Demonstration Act of 1993 is amended
to read as follows:
‘‘(f) AUTHORIZATION OF APPROPRIATIONS.—
‘‘(1) IN GENERAL.—There are authorized to be
appropriated to carry out this section $100,000,000
for fiscal year 1995.
‘‘(2) USE OF AMOUNTS.—Any amounts appro-
priated under paragraph (1) may be used only to
carry out the comprehensive homeless initiative
under subsection (c).’’.
(b) EXTENSION OF PROGRAM.—Section 2(g) of the
HUD Demonstration Act of 1993 (42 U.S.C. 11301 note)
is amended by striking ‘‘1994’’ and inserting ‘‘1995’’.
SEC. 422. FHA SINGLE FAMILY PROPERTY DISPOSITION.
Section 1407 of the Housing and Community Devel-
opment Act of 1992 (Public Law 102–550; 106 Stat.
4034) is amended by striking subsections (a) and (b) and
inserting the following new subsections:
‘‘(a) IMMEDIATE AVAILABILITY.—In carrying out the
program for disposition of single family properties ac-
quired by the Department of Housing and Urban Develop-
ment for use by the homeless under subpart E of part
291 of title 24, Code of Federal Regulations, the Secretary
of Housing and Urban Development shall make any eligi-
ble property available for lease under such program with-
out listing and making such property generally available
for sale for any intervening period.
‘‘(b) DISCOUNT.—Any property made available for
sale under the program referred to in subsection (a) shall
be made available at a price equal to the fair market value
of the property less a 20 percent discount.’’.
TITLE V—HEALTH CARE FOR
THE HOMELESS
Subtitle A—Categorical Grants for
Primary Health Services and
Substance Abuse Services
SEC. 501. AUTHORIZATION OF APPROPRIATIONS.
Section 340(q)(1) of the Public Health Service Act
(42 U.S.C. 256(q)(1)) is amended—
(1) by striking ‘‘$70,000,000’’ and all that fol-
lows through ‘‘1992, and’’; and
(2) by striking ‘‘and 1994’’ and inserting ‘‘,
1994, 1995, 1996, and 1997’’.
SEC. 502. ESTABLISHMENT OF PROGRAM FOR PREVENTION
AND 
TREATMENT 
OF 
SUBSTANCE 
ABUSE
AMONG HOMELESS INDIVIDUALS.
Section 340 of the Public Health Service Act (42
U.S.C. 256) is amended by adding at the end the following
new subsection:
‘‘(u) GRANTS FOR PREVENTION AND TREATMENT OF
SUBSTANCE ABUSE.—
‘‘(1) The Secretary may make grants to public
and nonprofit private entities for the purpose of car-
rying out comprehensive projects for the prevention
and treatment of substance abuse among homeless
individuals.
‘‘(2) In making grants under paragraph (1),
the Secretary shall give preference to any qualified
applicant that is a grantee under subsection (a) or
that is otherwise experienced in the provision to
homeless individuals of primary health services or
substance abuse services.
‘‘(3)(A) The Secretary may make a grant under
paragraph (1) only if the applicant involved agrees
that, in the project operated with the grant, the ap-
plicant will, to the extent practicable—
‘‘(i) employ homeless or formerly homeless
individuals; and
‘‘(ii) include not less than one such individ-
ual on the board of directors for the project (or
on the equivalent policymaking body for the
project), or will otherwise provide for the sig-
nificant participation of such an individual in
establishing policies for the project.
‘‘(B) In making grants under paragraph (1), in
addition to giving preference to applicants described
in paragraph (2), the Secretary shall give preference
to any qualified applicant that is in compliance with
the conditions specified in subparagraph (A) during
the period in which the Secretary is considering the
request of the applicant for the grant.
‘‘(4)(A) With respect to the costs of the project
to be carried out under paragraph (1) by an appli-
cant, the Secretary may make a grant under such
paragraph only if, subject to subparagraph (B), the
applicant agrees to make available (directly or
through donations from public or private entities)
contributions toward such costs in an amount that
is not less than $1 for each $3 of Federal funds pro-
vided in the grant (25 percent of such costs).
‘‘(B)(i) The contributions required in subpara-
graph (A) may be in cash or in kind, fairly evalu-
ated, including plant, equipment, and services. Ex-
cept as provided in clause (ii), amounts provided by
the Federal Government, or services assisted or sub-
sidized to any significant extent by the Federal Gov-
ernment, may not be included in determining the
amount of such contributions.
‘‘(ii) In determining the amount of contribu-
tions made available by an applicant for purposes of
subparagraph (A), the Secretary shall include the
amount of any grants, cooperative agreements, or
contracts provided by the Federal Government to the
applicant for the provision of housing to homeless
individuals.
‘‘(5) The Secretary may make a grant under
paragraph (1) only if the applicant involved agrees
that, in the project operated with the grant, the ap-
plicant will directly provide to homeless individuals,
or ensure the availability to homeless individuals of,
the following services with respect to substance
abuse:
‘‘(A) Counseling.
‘‘(B) Sobering services and detoxification
in nonhospital settings.
‘‘(C) Assessment of the need for services.
‘‘(D) Outreach services to inform the indi-
viduals of the availability of services from the
program.
‘‘(E) Case management services, including
aiding the individuals in establishing eligibility
for assistance, and in obtaining services, under
entitlement programs.
‘‘(F) Referrals to public and nonprofit en-
tities for purposes of receiving services with re-
spect to health, mental health, housing, child
care, employment and education.
‘‘(G) Followup services.
‘‘(6) The Secretary may authorize grantees
under paragraph (1) to expend the grant to treat
homeless individuals for substance abuse through
programs in which, during the period of treatment,
such individuals reside in facilities operated by the
grantee.
‘‘(7) In the case of a homeless individual to
whom a grantee under paragraph (1) is providing
treatment services for substance abuse, the Sec-
retary may authorize the grantee to expend the
grant to provide to the individual child care, training
in parenting, job training, employment services, and