‘‘(2) to promote the development of transitional 
and permanent housing; 
‘‘(3) to provide rental housing assistance to 
homeless individuals with disabling conditions and 
the families of such individuals; 
‘‘(4) to help eliminate systematic barriers to ac-
cessing federal, state and local programs for which 
homeless persons may be eligible; and 
‘‘(5) to encourage and foster self-sufficiency 
among homeless individuals. 
‘‘SEC. 422. COMMUNITY HOMELESS ASSISTANCE PROGRAM. 
‘‘(a) PROJECTS.—The Secretary shall make grants to 
continuum of care boards to carry out homeless assistance 
and prevention projects. 
‘‘(b) APPLICATIONS.— 
‘‘(1) SUBMISSION TO THE SECRETARY.—To re-
ceive a grant under subsection (a), a continuum of 
care board shall submit an application to the Sec-
retary at such time and in such manner as the Sec-
retary may require, and containing— 
‘‘(A) the information described in sub-
sections (a) and (b) of section 429; and 
‘‘(B) other information that shall— 
‘‘(i) describe the establishment or des-
ignation and function of the continuum of 
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care board, including the nomination and 
selection process of all members of the con-
tinuum of care board; 
‘‘(ii) outline the range of housing and 
service programs available to persons expe-
riencing homelessness or imminently at 
risk of experiencing homelessness and de-
scribe the unmet needs that remain in the 
geographic area for which the continuum 
of care board seeks funding regarding— 
‘‘(I) prevention activities; 
‘‘(II) outreach activities to assess 
the needs and conditions of persons 
experiencing homelessness; and 
‘‘(III) emergency shelters, transi-
tional housing, permanent housing, 
and needed supportive services; 
‘‘(iii) identify funds from private and 
public sources, other than funds received 
under subtitles B and C, that the State, 
units of general local government, con-
tinuum of care boards, project sponsors, 
and others will use for homelessness pre-
vention, 
emergency 
shelter, 
supportive 
services, transitional housing, and perma-
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nent housing, that will be integrated with 
the assistance provided under subtitles B 
and C; 
‘‘(iv) explain— 
‘‘(I) how the continuum of care 
board will meet the housing and serv-
ice needs of individuals and families 
experiencing homelessness in the ap-
plicant’s community; and 
‘‘(II) how the continuum of care 
board will integrate the plan with the 
strategy of the State and units of gen-
eral local government in the geo-
graphic area to prevent homelessness 
and end chronic homelessness, includ-
ing, as part of that strategy, a work 
plan for the applicable fiscal years; 
‘‘(v) report on the outcome based per-
formance of the homeless programs within 
the geographic area served by the con-
tinuum of care board that were funded 
under this title in the fiscal year prior to 
the fiscal year in which the application is 
submitted; 
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‘‘(vi) include any relevant required 
agreements under this subtitle; and 
‘‘(vii) contain a certification of con-
sistency with the Consolidated Plan pursu-
ant to section 403. 
‘‘(2) SELECTION
CRITERIA.—The Secretary 
shall select continuum of care boards to receive as-
sistance under this subtitle by a national competition 
based on criteria established by the Secretary, which 
shall include— 
‘‘(A) the need for assistance in the area; 
‘‘(B) the ability and capacity of the con-
tinuum of care board to carry out its duties and 
obligations under this subtitle and to effectively 
manage the distribution of grant funds; 
‘‘(C) the extent to which the amount of as-
sistance to be provided under this subtitle will 
be supplemented with resources from other pub-
lic and private sources; 
‘‘(D) the extent to which the continuum of 
care board has demonstrated coordination with 
the other Federal, State, local, private, and 
other entities serving individuals experiencing 
homelessness in the planning and operation of 
projects; 
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‘‘(E) the performance of the continuum of 
care board and its projects; and 
‘‘(F) such other factors as the Secretary 
determines to be appropriate to carry out this 
subtitle in an effective and efficient manner. 
‘‘(3) ANNOUNCEMENT OF AWARDS.—The Sec-
retary shall announce the grants to be made under 
subsection (a) for that fiscal year. 
‘‘(4) OBLIGATION, DISTRIBUTION, AND UTILIZA-
TION OF FUNDS.— 
‘‘(A) REQUIREMENTS FOR OBLIGATION.— 
‘‘(i) IN GENERAL.—Not later than 9 
months after the announcement referred to 
in paragraph (3), each continuum of care 
board receiving a grant announced under 
paragraph (3) shall, with respect to a 
project to be funded through such grant, 
meet, or cause the project sponsor to meet, 
all requirements for the obligation of funds 
for such project, including, to the extent 
applicable, site control, matching funds, 
and environmental review requirements, 
except as provided in clause (ii). 
‘‘(ii) ACQUISITION, REHABILITATION, 
OR
CONSTRUCTION.—Not later than 15 
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months after the announcement referred to 
in paragraph (3), each continuum of care 
board or project sponsor seeking the obli-
gation of funds for acquisition of housing, 
rehabilitation of housing, or construction 
of new housing for a grant announced 
under paragraph (3) shall meet all require-
ments for the obligation of those funds, in-
cluding, to the extent applicable, site con-
trol, matching funds, and environmental 
review requirements. 
‘‘(iii) EXTENSIONS.—At the discretion 
of the Secretary, and in compelling cir-
cumstances, the Secretary may extend the 
date by which a continuum of care board 
shall meet or cause a project sponsor to 
meet the requirements described in clauses 
(i) and (ii) if the Secretary determines that 
compliance with the requirements was de-
layed due to factors beyond the reasonable 
control of the continuum of care board or 
project sponsor. Such factors may include 
difficulties in obtaining site control for a 
proposed project, completing the process of 
obtaining secure financing for the project, 
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or completing the technical submission re-
quirements for the project. 
‘‘(B) OBLIGATION.—After a continuum of 
care board meets or causes a project sponsor to 
meet the requirements described in subpara-
graph (A), the Secretary shall obligate the 
funds for the grant involved. 
‘‘(C) EXPENDITURE OF FUNDS.—The Sec-
retary shall establish deadlines for timely ex-
penditure of funds. The Secretary may recap-
ture the funds not expended by such deadlines. 
‘‘(c) NOTIFICATION OF FINAL PRO RATA ESTIMATED 
NEED AMOUNTS.— 
‘‘(1) NOTICE.—The Secretary shall inform each 
continuum of care board, at a time concurrent with 
the release of the Notice of Funding Availability for 
the grants, of the final pro rata estimated need 
amount under this subtitle for the geographic area 
represented by the continuum of care board. 
‘‘(2) 
METHODOLOGY
FOR
DETERMINING 
AMOUNT.— 
‘‘(A) Subject to subparagraph (B), the 
final pro rata estimated need amount under 
paragraph (1) shall be determined using a 
methodology selected by Secretary. 
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‘‘(B) Prior to selecting the methodology 
referenced in subparagraph (A), the Secretary 
shall notify the public of the proposed method-
ology, provide the public with the opportunity to 
comment on such methodology, and consider 
such comments in selecting the methodology. 
‘‘(3) COMBINATIONS
OR
CONSORTIA.—For a 
continuum of care board that represents a combina-
tion or consortium of geographic areas, the esti-
mated need amount shall be the sum of the esti-
mated need amounts for the jurisdictions within the 
geographic areas represented by the continuum of 
care board. 
‘‘SEC. 423. ELIGIBLE ACTIVITIES. 
‘‘(a) IN GENERAL.—The Secretary may make grants 
to continuum of care boards under section 422 to carry 
out homeless assistance and prevention that consist of one 
or more of the following eligible activities: 
‘‘(1) Construction of housing. 
‘‘(2) Acquisition, renovation, conversion or re-
habilitation of a structure to provide housing. 
‘‘(3) Leasing of property, or portions of prop-
erty, not owned by the continuum of care board or 
project sponsor involved, for use in providing hous-
ing or supportive services. 
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‘‘(4) Provision of tenant-based rental housing 
assistance for eligible persons. 
‘‘(5) Provision of project-based rental housing 
assistance for eligible persons. 
‘‘(6) Payment of operating costs for housing 
units assisted under this subtitle. 
‘‘(7) Providing services determined by the Sec-
retary (either at the Secretary’s initiative or on the 
basis of adequate justification by an applicant) to be 
directly relevant to assisting persons experiencing 
homelessness to access and retain housing, for both 
new projects and projects receiving renewal funding. 
‘‘(8)(A) Payment of administrative costs of the 
continuum of care board for planning, administering 
grants for, maintaining, and evaluating projects, and 
ensuring compliance with homeless management in-
formation system requirements described in section 
402(i) may not be more than 6 percent of the total 
funds made available through the grant. The project 
sponsor may use up to 5 percent of the funds it re-
ceives from the continuum of care board for admin-
istrative costs. 
‘‘(B) For purposes of this paragraph, moni-
toring and evaluating shall include— 
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‘‘(i) measuring the outcomes of the home-
less assistance planning process of a continuum 
of care board for preventing homelessness and 
helping to end chronic homelessness; 
‘‘(ii) the effective and timely implementa-
tion of specific projects funded under this sub-
title, relative to projected outcomes; and 
‘‘(iii) in the case of a housing project fund-
ed under this subtitle, compliance with appro-
priate standards of housing quality and habit-
ability as determined by the Secretary. 
‘‘(9) Prevention activities for which a con-
tinuum of care board may use up to 10 percent of 
the funds made available through a grant under sec-
tion 422, including— 
‘‘(A) providing financial assistance to indi-
viduals or families who have received eviction 
notices, foreclosure notices, or notices of termi-
nation of utility services if, in the case of such 
an individual or family— 
‘‘(i) the inability of the individual or 
family to make the required payments is 
due to a sudden reduction in income; 
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‘‘(ii) the assistance is necessary to 
avoid the eviction, foreclosure, or termi-
nation of services; and 
‘‘(iii) there is a reasonable prospect 
that the individual or family will be able to 
resume the payments within a reasonable 
period of time; and 
‘‘(B) carrying out relocation activities (in-
cluding providing security or utility deposits, 
rental assistance for a final month at a loca-
tion, assistance with moving costs, or rental as-
sistance for not more than three months) for 
moving into transitional or permanent housing, 
individuals, and families that include such indi-
viduals— 
‘‘(i) who lack housing; 
‘‘(ii) who are being discharged from a 
publicly funded acute care or long term 
care facility, program, or system of care, 
or whose services (from such a facility, 
program, or system of care) are being ter-
minated; and 
‘‘(iii) who have plans, developed col-
laboratively by the public entities involved 
and the individuals and families, for secur-
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ing or maintaining housing after any fund-
ing provided under this subtitle is utilized. 
‘‘(b) ELIGIBILITY FOR FUNDS FOR PREVENTION AC-
TIVITIES.—To be eligible to receive grant funds under sec-
tion 422 to carry out the prevention activities described 
in subsection (a)(9), a continuum of care board shall sub-
mit an application to the Secretary under section 422 that 
shall include a certification in which— 
‘‘(1) the relevant public entities in the geo-
graphic area involved certify compliance with sub-
section (c); and 
‘‘(2) the publicly funded institutions, facilities, 
and systems of care in the geographic area certify 
that the institutions, facilities, and systems of care 
will take, and fund directly, all reasonable measures 
to ensure that the institutions, facilities, and sys-
tems of care do not discharge individuals into home-
lessness. 
‘‘(c) SUPPLEMENT, NOT SUPPLANT.—Funds appro-
priated to further the purposes of this title and made 
available for prevention activities described in subsection 
(a)(9) shall be used to supplement and not supplant other 
Federal, State, and local public funds used for homeless-
ness prevention. 
‘‘(d) USE RESTRICTIONS..— 
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‘‘(1) ACQUISITION, REHABILITATION, AND NEW 
CONSTRUCTION.—A project that consists of activities 
described in paragraph (1) or (2) of subsection (a) 
shall be operated for the purpose specified in the ap-
plication submitted for the project under section 422 
for not less than 15 years. 
‘‘(2) OTHER ACTIVITIES.—A project that con-
sists of activities described in any of paragraphs (3) 
through (9) of subsection (a) shall be operated for 
the purpose specified in the application submitted 
for the project under section 422 for the duration of 
the grant period involved. 
‘‘(3) CONVERSION.—If the project sponsor car-
rying out a project that provides transitional or per-
manent housing submits a request to the continuum 
of care board to carry out instead a project for the 
direct benefit of very low income persons, and the 
continuum of care board determines that the initial 
project is no longer needed to provide transitional or 
permanent housing, the continuum of care board 
may approve the project described in the request 
and authorize the project sponsor to carry out that 
project. 
‘‘(e) RENTAL ASSISTANCE.— 
‘‘(1) TENANT-BASED RENTAL ASSISTANCE.— 
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‘‘(A) AUTHORITY.—Grants under section 
422 may be used to provide tenant-based rental 
assistance for eligible persons in accordance 
with this paragraph. 
‘‘(B) HOUSING
ASSISTANCE.—An eligible 
person on behalf of whom assistance is provided 
under this subtitle shall select the unit in which 
such person will live using rental assistance 
under this subtitle; except that where necessary 
to assure that the provision of supportive serv-
ices to persons is feasible, a continuum of care 
board or project sponsor may require that a 
person participating in the program live (i) in 
a particular structure or unit for up to the first 
year of participation, and (ii) within a par-
ticular geographic area for the full period of 
participation or the period remaining after the 
period referred to in subclause (i). 
‘‘(C) AMOUNT OF ASSISTANCE.—The con-
tract with a continuum of care board for assist-
ance under this subtitle shall be for a term of 
5 years. Each contract shall provide that the 
continuum of care board shall receive aggregate 
amounts not to exceed the appropriate existing 
housing fair market rent limitation under sec-
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tion 8(c) of the United States Housing Act of 
1937 in effect at the time the application is ap-
proved. At the option of the continuum of care 
board and subject to the availability of such 
amounts, the continuum of care board may re-
ceive in any year (i) up to 25 percent of such 
amounts or (ii) such higher percentage as the 
Secretary may approve upon a demonstration 
satisfactory to the Secretary that the con-
tinuum of care board has entered into firm fi-
nancial commitments to ensure that the hous-
ing assistance described in the application will 
be provided for the full term of the contract. 
Any amounts not needed for a year may be 
used to increase the amount available in subse-
quent years. 
‘‘(2) PROJECT-BASED RENTAL ASSISTANCE.— 
‘‘(A) AUTHORITY.—Grants under section 
422 may be used to provide project-based rental 
assistance for eligible persons in accordance 
with this subsection. 
‘‘(B) HOUSING
ASSISTANCE.—Assistance 
under this subtitle shall be provided pursuant 
to a contract between the continuum of care 
board or the project sponsor and an owner of 
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an existing structure. The contract shall provide 
that rental assistance payments shall be made 
to the owner and that the units in the structure 
shall be occupied by eligible persons for not less 
than the term of the contract. 
‘‘(C) TERM OF CONTRACT AND AMOUNT OF 
ASSISTANCE.— 
‘‘(i) TERM OF CONTRACT.—Each con-
tract under subparagraph (B) shall be for 
a term of 5 years, and the owner shall 
have an option to renew the assistance for 
an additional 5-year term, subject to the 
availability of amounts provided in appro-
priations Acts; except that if an expendi-
ture of at least $3,000 for each unit (in-
cluding its prorated share of work on com-
mon areas or systems) is required to make 
the structure decent, safe, and sanitary, 
and the owner agrees to carry out the re-
habilitation with resources other than as-
sistance under this subtitle within 12 
months of notification of grant approval, 
the contract shall be for a term of 10 
years. 
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