Union Calendar No. 233
105TH CONGRESS
1ST SESSION
H. R. 217
[Report No. 105–407]
A BILL
To amend title IV of the Stewart B. McKinney
Homeless Assistance Act to consolidate the Fed-
eral programs for housing assistance for the
homeless into a block grant program that ensures
that States and communities are provided suffi-
cient flexibility to use assistance amounts effec-
tively.
DECEMBER 19, 1997
Reported with an amendment, committed to the Commit-
tee of the Whole House on the State of the Union, and
ordered to be printed
IB
Union Calendar No. 233
105TH CONGRESS
1ST SESSION
H. R. 217
[Report No. 105–407]
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
JANUARY 7, 1997
Mr. LAZIO of New York introduced the following bill; which was referred to
the Committee on Banking and Financial Services
DECEMBER 19, 1997
Reported with an amendment, committed to the Committee of the Whole
House on the State of the Union, and ordered to be printed
[Strike out all after the enacting clause and insert the part printed in italic]
[For text of introduced bill, see copy of bill as introduced on January 7, 1997]
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 Pro-
grams Consolidation and Flexibility Act’’.
SEC. 2. FINDINGS; PURPOSE.
(a) FINDINGS.—The Congress finds that—
(1) the United States faces a crisis of individuals
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 ad-
dress the problem of hopelessness in a comprehensive
manner;
(3) there are a multitude of Federal Government
programs to assist the homeless, including programs
for elderly persons, with disabilities, Native Ameri-
cans, and veterans;
(4) many of the Federal programs for the home-
less 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 ef-
forts;
(6) increasing resources available to reduce hope-
lessness are utilized in the development of services
rather than the creation of housing;
(7) housing programs must be evaluated on the
basis of their effectiveness in reducing hopelessness,
transitioning individuals to permanent housing and
self-sufficiency, and creating an adequate plan to dis-
charge homeless persons to and from mainstream
service systems;
(8) effective hopelessness treatment should pro-
vide a comprehensive housing system (including tran-
sitional 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;
(9) supportive housing activities support home-
less persons in an environment that can meet their
short-term or long-term needs and prepare them to re-
enter society as appropriate;
(10) hopelessness should be treated as part of a
symptom of many neighborhood and community
problems, whose remedies require a holistic approach
integrating all available resources;
(11) there are many private sector entities, par-
ticularly nonprofit organizations, that have success-
fully operated homeless programs;
(12) government restrictions and regulations
may discourage and impede innovative approaches to
hopelessness, such as coordination of the various types
of assistance that are required by homeless persons;
and
(13) the Federal Government has a responsibility
to establish partnerships with State and local govern-
ments and the private sector to address comprehen-
sively the problems of hopelessness.
(b) PURPOSE.—It is the purpose of this Act—
(1) to consolidate the existing housing programs
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 hopelessness, including alternative
housing strategies and an improved service sector;
(3) to provide Federal assistance to reduce hope-
lessness on a basis that requires recipients of such as-
sistance to supplement the federally provided amounts
and thereby guarantee the provision of a certain level
of housing and complementary services necessary to
meet the needs of the homeless population; and
(4) to ensure that multiple Federal agencies are
involved in the provision of housing, human services,
employment, and education assistance both through
the funding provided for implementation of the Stew-
art B. McKinney Homeless Assistance Act and main-
stream funding and to encourage entrepreneurial ap-
proaches in the provision of housing for homeless peo-
ple.
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’, ‘individual’, and ‘homeless person’ in-
clude’’; and
(B) in subsection (c), by striking ‘‘the term
‘homeless’ or ‘homeless individual’ does not in-
clude’’ and inserting ‘‘the terms ‘homeless’, ‘indi-
vidual’, and ‘homeless person’ do not include’’;
and
(3) by redesignating sections 103, 104, and 105
as sections 102, 103, and 104, respectively.
SEC. 4. FEDERAL EMERGENCY MANAGEMENT AGENCY FOOD
AND SHELTER PROGRAM.
Section 322 of the Stewart B. McKinney Homeless As-
sistance Act (42 U.S.C. 11352) is amended to read as fol-
lows:
‘‘SEC. 322. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to carry out
this title such sums as may be necessary for each of fiscal
years 1998, 1999, 2000, 2001, and 2002.’’.
SEC. 5. PERMANENT HOUSING DEVELOPMENT AND FLEXI-
BLE BLOCK GRANT HOMELESS ASSISTANCE
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—PERMANENT HOUS-
ING 
DEVELOPMENT 
AND
FLEXIBLE 
BLOCK 
GRANT
HOMELESS ASSISTANCE PRO-
GRAM
‘‘Subtitle A—General Provisions
‘‘SEC. 401. PURPOSE; PERFORMANCE MEASURES.
‘‘(a) PURPOSE.—The purpose of the program under
this title is to provide assistance for permanent housing de-
velopment for homeless persons and promote the develop-
ment of a comprehensive housing system that transitions
homeless persons to live as independently as possible, in-
cluding assistance in the form of permanent housing devel-
opment, supportive housing, emergency shelters, supportive
services, and activities to prevent hopelessness.
‘‘(b) PERFORMANCE MEASURES.—Consistent with the
purposes and requirements of the Government Performance
and Results Act of 1993, the programs under this title and
the implementation of such programs by the Department
of Housing and Urban Development shall comply with the
following performance goals:
‘‘(1) The Federal Government shall ensure an ef-
fective grant allocation process and sound financial
management of the process. Such grant allocation
process shall be implemented to ensure that—
‘‘(A) local governments shall work with the
appropriate Local Board to create innovative
plans sufficient to address the needs of homeless
people in their community; and
‘‘(B) all eligible communities receive funds
to address the needs of homeless people in such
communities through local governments or pri-
vate nonprofit organizations.
‘‘(2) The financial resources provided under this
title shall be used effectively to create more low-cost
permanent housing and to transition homeless people
to self-sufficiency and permanent housing.
‘‘(3) The Federal Government shall use the Inter-
agency Council on the Homeless as a vehicle to co-
ordinate services, programs, and funds to promote the
transition of homeless people to self-sufficiency in per-
manent housing.
‘‘SEC. 402. GRANT AUTHORITY.
‘‘(a) IN GENERAL.—The Secretary may make grants
as provided under this title to eligible grantees for States,
metropolitan cities and urban counties, consortia, and in-
sular areas for carrying out eligible activities under sub-
titles B and C.
‘‘(b) GRANT AMOUNTS.—Except as otherwise provided
under this title, amounts for a fiscal year allocated under
section 406 shall be used as follows:
‘‘(1) INSULAR AREAS.—Any amounts for the fis-
cal year allocated under section 406(a) for an insular
area shall be used for a grant to the eligible grantee
for the insular area for such fiscal year.
‘‘(2) PERMANENT HOUSING DEVELOPMENT.—Any
amounts allocated under section 406(b) for use under
subtitle B shall be used for grants under section
406(b)(2) to States, metropolitan cities, urban coun-
ties, and consortia for such fiscal year.
‘‘(3) FLEXIBLE BLOCK GRANT HOMELESS ASSIST-
ANCE.—Any amounts allocated under section 406(c)
for a State, metropolitan city or urban county, or
consortium shall be used for a grant under section
406(c) to the eligible grantee for the State, metropoli-
tan city or urban county, or consortium respectively,
for the fiscal year.
‘‘(c) USE FOR ELIGIBLE ACTIVITIES.—Grant amounts
provided under this title and any supplemental funds pro-
vided under section 407 may be used only as follows:
‘‘(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 insu-
lar area.
‘‘(2) 
PERMANENT
HOUSING
DEVELOPMENT
GRANTS.—In the case of a grant under subsection
(b)(2) to a State, metropolitan city or urban county,
or consortium, for eligible activities under subtitle B
within the State, metropolitan city or urban county,
or consortium, respectively.
‘‘(3) FLEXIBLE BLOCK GRANT HOMELESS ASSIST-
ANCE.—In the case of a grant under subsection (b)(3)
for a State, metropolitan city or urban county, or
consortium, for eligible activities under subtitle C
benefiting the State, city or county, or consortium
and carried out only within non entitlement areas of
the State, within the city or county, or consortium,
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 section
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 FOR PERMANENT HOUSING DEVEL-
OPMENT AND FLEXIBLE ASSISTANCE.—In the case of
a grant from amounts allocated under section 406(b)
or 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 county,
respectively;
‘‘(B) a consortium of units of general local
governments which shall be deemed to be a met-
ropolitan city, but only if the Secretary deter-
mines that the consortium—
‘‘(i) is comprised of units of general
local government which are geographically
contiguous (which may include all units of
general local government within a State);
‘‘(ii) has sufficient authority and ad-
ministrative capability to carry out the
purposes of this title on behalf of its member
jurisdictions; and
‘‘(iii) will, according to a written cer-
tification by the State (or States, if the con-
sortium includes jurisdictions in more than
one State) in which its member jurisdic-
tions are located, direct its activities to alle-
viation of hopelessness problems within the
State (or States); and
‘‘(C) to the extent that a private nonprofit
organization is authorized by the government of
the State or the city or county under subpara-
graph (B) to act as the grantee for the State, or
the city or county, respectively, for purposes of
this title, such private nonprofit organization.
‘‘SEC. 404. USE OF PROJECT SPONSORS.
‘‘(a) TRANSFER OF GRANT AMOUNTS BY GRANTEES.—
Eligible activities assisted with grant amounts provided
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 ex-
tent that a grantee does not use grant amounts for eligible
activities carried out directly by the grantee, the grantee
shall select eligible activities for assistance and project spon-
sors to carry out such eligible activities pursuant to a com-
petition based on criteria established by the Secretary,
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 and the project sponsor’s expe-
rience in successfully transitioning homeless persons
into stable, long-term housing;
‘‘(3) the need for the type of eligible activity in
the area to be served;
‘‘(4) the extent to which the amount of assistance
to be provided with grant amounts will be supple-
mented with resources from other public and private
sources;
‘‘(5) the cost-effectiveness of the proposed eligible
activity, considered in relation to the ultimate goal of
moving people out of hopelessness permanently, in-
cluding consideration of high-cost area services, and
other necessary amenities;
‘‘(6) the extent to which the project sponsor car-
rying out the eligible activity will coordinate with
Federal, State, local, and private entities serving
homeless persons in the development of a comprehen-
sive housing system and in the planning and oper-
ation of the activity, to the extent practicable, and
pursuant to section 408(m)(3) will carry out the ac-
tivity in coordination and conjunction with federally
funded activities for the homeless;
‘‘(7) the extent to which the project sponsor em-
ploys homeless persons or involves homeless persons or
formerly homeless persons in the operation and design
of its programs; and
‘‘(8) 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 in accordance with section 105
of the Cranston-Gonzalez National Affordable Hous-
ing Act and any other requirement established by the
Secretary and which 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 assisted
with such grant amounts are or will be consistent
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 fis-
cal year, the Secretary shall reserve for grants for each of
the insular areas amounts in accordance with an allocation
formula established by the Secretary.
‘‘(b) ALLOCATION FOR PERMANENT HOUSING DEVEL-
OPMENT GRANTS UNDER SUBTITLE B.—
‘‘(1) 
ANNUAL
PORTION
OF
APPROPRIATED
AMOUNT AVAILABLE.—Of the amount made available
for grants under this title for a fiscal year that re-
mains after amounts are reserved under subsection
(a), the Secretary shall allocate for use under subtitle
B, 30 percent of such funds (except that for fiscal
years 1998 and 1999, the Secretary shall allocate 25
percent of such funds for use under such subtitle).
‘‘(2) GRANTS.—Using the amounts allocated for
use under subtitle B for a fiscal year, the Secretary
shall make grants to States, metropolitan cities and
urban counties, and consortia pursuant to a national
competition based on the criteria specified in section
404(b) and in accordance with such other factors as
the Secretary determines to be appropriate to carry
out this title in an effective and efficient manner.
‘‘(3) LIMITATION.—In making grants using
amounts allocated for use under subtitle B for any
fiscal year, the Secretary shall ensure that not more
than 35 percent of the total amount allocated for such
use for such fiscal year is used for activities under
section 441 of the Stewart B. McKinney Homeless As-
sistance Act, as in effect on October 31, 1997.
‘‘(c) ALLOCATION
FOR
FLEXIBLE
BLOCK
GRANT
HOMELESS ASSISTANCE UNDER SUBTITLE C.—
‘‘(1) 
ANNUAL
PORTION
OF
APPROPRIATED
AMOUNT AVAILABLE FOR SUBTITLE C ACTIVITIES.—Of
the amount made available for grants under this title
for a fiscal year that remains after amounts are re-
served under subsection (a), the Secretary shall allo-
cate for use under subtitle C 70 percent of such funds
(except that for fiscal years 1998 and 1999, the Sec-
retary shall allocate 75 percent of such funds for use
under such subtitle).
‘‘(2) ALLOCATION
OF
AMOUNT
AVAILABLE
BE-
TWEEN METROPOLITAN CITIES AND URBAN COUNTIES
AND STATES.—Of the amount allocated pursuant to
paragraph (1) for use under subtitle C for a fiscal
year, 70 percent shall be allocated for metropolitan
cities and urban counties and 30 percent shall be al-
located for States.
‘‘(3) INTERIM
DETERMINATION
OF
ALLOCATED
AMOUNT.—Except as provided in subparagraph (A)
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 avail-
able for the preceding fiscal year under section
106(b) of the Housing and Community Develop-
ment Act of 1974 for grants to metropolitan
cities and urban counties that was allocated 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 Development Act
of 1974 for grants to States that was allocated
for such State.
‘‘(4) 
MINIMUM
APPROPRIATION
REQUIRE-
MENT.—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—
‘‘(A) the Secretary shall not allocate
amounts for such fiscal year under subsection (b)
and this subsection;
‘‘(B) subsection (d) shall not apply to
amounts for such fiscal year; and
‘‘(C) 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 competi-
tion based on the criteria specified in section
404(b).
‘‘(5) STUDY; SUBMISSION OF INFORMATION TO
CONGRESS RELATED TO ALTERNATIVE METHODS OF
ALLOCATION.—Not later than 1 year after the date of
the enactment of the Homeless Housing Program Con-
solidation and Flexibility Act, the Secretary shall—
‘‘(A) submit to Congress—
‘‘(i) the best available methodology for
determining a formula relative to the geo-
graphic allocation of funds under this sub-
title among entitlement communities and
nonentitlement areas based on the incidence
of homelessness and factors that lead to
homelessness;
‘‘(ii) proposed alternatives to the for-
mula submitted pursuant to clause (i) for
allocating funds under this section, includ-
ing an evaluation and recommendation on
a 75/25 percent allocation of flexible block
grant homeless assistance between metro-
politan cities and urban counties and
States under paragraph (2);
‘‘(iii) an analysis of the deficiencies in
the current allocation formula described in
section 106(b) of the Housing and Commu-
nity Development Act of 1974, and an anal-
ysis of the adequacy of current indices used
as proxies for measuring homelessness; and
‘‘(iv) an analysis of the bases underly-
ing each of the proposed allocation methods;
‘‘(B) perform the duties required by this
paragraph in ongoing consultation with—
‘‘(i) the Subcommittee on Housing Op-
portunity and Community Development of
the Committee on Banking, Housing, and
Urban Affairs of the Senate;
‘‘(ii) the Subcommittee on Housing
and Community Opportunity of the Com-
mittee on Banking and Financial Services
of the House of Representatives;
‘‘(iii) 
organizations 
representing
States, metropolitan cities and urban coun-
ties;
‘‘(iv) organizations representing rural
communities;
‘‘(v) organizations representing veter-
ans;
‘‘(vi) organizations representing per-
sons with disabilities;
‘‘(vii) members of the academic com-
munity; and
‘‘(viii) national homelessness advocacy
groups; and
‘‘(C) estimate the amount of funds that will
be received annually by each entitlement commu-
nity and nonentitlement area under each such
alternative allocation system and compare such
amounts to the amount of funds received by each
entitlement community and nonentitlement area
in prior years under this section.
‘‘(6) MINIMUM GRANT AMOUNT.—Notwithstand-
ing paragraph (3), a State or metropolitan city or
urban county shall receive no less funding under this
subsection in the first full fiscal year after the date
of the enactment of the Homeless Housing Programs
Consolidation and Flexibility Act than 90 percent of
the average of the amounts awarded annually to that
jurisdiction for homeless assistance programs admin-
istered by the Secretary (not including allocations for
shelter plus care and single room occupancy programs
as defined in, and in effect pursuant to, this Act
prior to the date of the enactment of the Homeless
Housing Programs Consolidation and Flexibility Act)
under this title during fiscal years 1994 through
1997, no less than 85 percent in the second full fiscal
year after the date of the enactment of the Homeless
Housing Programs Consolidation and Flexibility Act,
no less than 80 percent in the third and fourth full
fiscal years after the date of the enactment of the
Homeless Housing Programs Consolidation and
Flexibility Act, and no less than 75 percent in the
fifth full fiscal year after the date of the enactment of
the Homeless Housing Programs Consolidation and
Flexibility Act, but only if the amount appropriated
pursuant to section 435 in each such fiscal year ex-
ceeds $800,000,000. If that amount does not exceed
$800,000,000 in any fiscal year referred to in the
first sentence of this paragraph, the jurisdiction may
receive its proportionate share of the amount appro-
priated which may be less than the amount stated
such sentence for such fiscal year.
‘‘(7) MINIMUM
STATE
ALLOCATION.—Notwith-
standing paragraphs (3) and (6), if in any fiscal
year the allocation for a State is less than $2,000,000,
the allocation for that State shall be increased to
$2,000,000 and the increase shall be provided by de-
ducting pro rata amounts from the allocations of
States with allocations of more than $2,000,000.
‘‘(8) REDUCTION.—Notwithstanding paragraphs
(1) through (7), in any fiscal year, the Secretary may
provide a grant under this subsection for a State or
metropolitan city or urban county, in an amount less
than the amount allocated under those paragraphs, if
the Secretary determines that the jurisdiction has
failed to comply with requirements of this title, or
that such action is otherwise appropriate.
‘‘(d) RECAPTURE OF ALLOCATED AMOUNTS.—The Sec-
retary shall recapture the following amounts:
‘‘(1) UNUSED
AMOUNTS.—Not less than once
during each fiscal year, the Secretary shall recapture
any amounts allocated under this section that—
‘‘(A) are allocated for a State, metropolitan
city or urban county, or insular area, but not
provided to an eligible grantee for the jurisdic-
tion 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.
‘‘(2) AMOUNTS ALLOCATED TO GRANTEES THAT
FAIL TO COMPLY WITH COMPREHENSIVE HOUSING AF-
FORDABILITY
STRATEGY
REQUIREMENTS.—Notwith-
standing paragraph (1), if, for any fiscal year, a met-
ropolitan 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 be-
come available for allocation, the amounts that would
have been allocated under subsection (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 sec-
tion 405(1). Any amounts that cannot be allocated for
a State under the preceding sentence shall be reallo-
cated for other metropolitan cities and urban counties
and States that comply with such requirement and
demonstrate extraordinary need or large numbers of
homeless persons, as determined by the Secretary.
‘‘(e) REALLOCATION OF AMOUNTS.—Any amounts al-
located under subsection (b) that are recaptured pursuant
to subsection (d)(1) shall be reallocated only for use under
subtitle B. Any amounts allocated under subsection (c) that
are recaptured pursuant to subsection (d)(1) shall be reallo-
cated only for use under subtitle C.
‘‘SEC. 407. MATCHING FUNDS REQUIREMENT.
‘‘(a) IN GENERAL.—Each State, metropolitan city or
urban county, and insular area for which a grant under
this title is made shall supplement the amount of the grant
provided under this title with an amount that is not less
than—
‘‘(1) 50 percent of the amount of such grant, if
the State, metropolitan city or urban county, and in-
sular area has indicated in its application for such
grant that it will not include as a portion of its
supplementation the cost or value of donated services;
or
‘‘(2) 100 percent of the grant amount, if the
State, metropolitan city or urban county, and insular
area indicated in its application for such grant that
it will include as a portion of its supplementation the
cost or value of donated services.
‘‘(b) MATCHING REQUIREMENT FOR USE OF MORE
THAN 35 PERCENT OF FUNDS FOR SUPPORTIVE SERV-
ICES.—In addition to the supplemental funds required pur-
suant to subsection (a), for the second full fiscal year after
the date of the enactment of the Homeless Housing Pro-
grams Consolidation and Flexibility Act and each fiscal
year thereafter, a State, consortium, or metropolitan city
or urban county shall supplement the grant funds for the
State, consortium, city or county in an amount equal to
the amount used by that State, metropolitan city or urban
county, or consortium for supportive services in a fiscal
year that exceeds 35 percent of the total grant amount for
the State, metropolitan city or urban county, or consortium
for that fiscal year.
‘‘(c) TREATMENT OF INDEPENDENT STATE OR LOCAL
GOVERNMENT FUNDS.—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 may be counted toward the amount required pursu-
ant to subsection (a).
‘‘(d) AUTHORITY
FOR
GRANTEES
TO
REQUIRE
SUPPLEMENTATION.—
‘‘(1) IN GENERAL.—Each grantee under this title
may require any subgrantee or project sponsor to
whom it provides such grant amounts to provide sup-
plemental amounts required under subsections (a)
and (b) with an amount of funds from sources other
than this title.
‘‘(2) AMOUNT
ALLOWED
TO
BE
REQUIRED
BY
GRANTEE.—
‘‘(A) GRANT AMOUNT.—Except as provided
in paragraph (3), a grantee may not require any
subgrantee or project sponsor to whom it pro-
vides such grant amounts under this title to pro-
vide—
‘‘(i) supplemental amounts required
under subsection (a)(1) in an amount ex-
ceeding 25 percent of the grant amount pro-
vided to the grantee or project sponsor; or
‘‘(ii) supplemental amounts required
under subsection (a)(2) in an amount ex-
ceeding 50 percent of the grant amount pro-
vided to the grantee or project sponsor.
‘‘(B) SUPPORTIVE
SERVICES.—A grantee
may require any subgrantee or project sponsor to
whom it provides grant amounts under this title
to provide supplemental amounts required under
subsection (b) in an amount equal to the amount
used by subgrantee or project sponsor for sup-
portive services in a fiscal year that exceeds 35
percent of the total amount allocated pursuant to
this subsection for that fiscal year.
‘‘(3) SUPPLEMENTAL
FUNDS
MAY
BE
CONSID-
ERED AS MATCHING FUNDS.—Supplemental amounts
provided by a subgrantee or project sponsor pursuant
to this subsection may be considered supplemental
amounts for purposes of compliance by any grantee
with the requirement under subsections (a) and (b).
‘‘(e) USE OF FUNDS.—Any supplemental funds made
available in compliance with this section shall be available
only to carry out eligible activities (1) under 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.
‘‘(f) SUPPLEMENTAL FUNDS.—In determining the
amount of supplemental funds provided in accordance with
this section, the following amounts may be included:
‘‘(1) Cash.
‘‘(2) The value of any donated or purchased ma-
terial or building.
‘‘(3) The value of any lease on a building.
‘‘(4) The proceeds from bond financing validly
issued by a State or unit of general local government,
agency, or instrumentality thereof, and repayable
with revenues derived from the activity assisted under
this title.
‘‘(5) The amount of any salary paid to staff to
carry out a program for eligible activities under sub-
title B or C.
‘‘(6) The cost or value of any donated goods.
‘‘(7) The value of taxes, fees, or other charges
that are normally and customarily imposed, but
which are waived or foregone to assist in providing
housing or services for the homeless.
‘‘(8) The cost of on-site and off-site infrastruc-
ture that is directly related to and necessary for pro-
viding housing or services for the homeless.
‘‘(9) The cost or value of any donated services,
but only if the State, metropolitan city or urban
county, and insular area has stated in its application
for a grant under this title that it shall supplement
the amount of such grant, in accordance with section
407(a)(2).
‘‘(g) REDUCTION IN MATCHING REQUIREMENTS.—
‘‘(1) IN GENERAL.—The Secretary shall reduce
the matching requirement under subsection (a) during
a fiscal year by—
‘‘(A) 50 percent for a jurisdiction that cer-
tifies that it is in fiscal distress; and
‘‘(B) 100 percent for a jurisdiction that cer-
tifies that it is in severe fiscal distress.
For purposes of subparagraphs (A) and (B), the juris-
diction shall make the certification on behalf of a re-
cipient that is not a governmental jurisdiction.
‘‘(2) DEFINITIONS.—For purposes of this sub-
section—
‘‘(A) the term ‘fiscal distress’ means, with
respect to a unit of general local government, in-
sular area, or State recipient that is a govern-
mental jurisdiction, that the jurisdiction satisfies
one of the distress criteria set forth in paragraph
(3); and
‘‘(B) the term ‘severe fiscal distress’ means,
with respect to a unit of general local govern-
ment, insular area, or State recipient that is a
governmental jurisdiction, that the jurisdiction
satisfies both of the distress criteria set forth in
paragraph (3).
‘‘(3) DISTRESS CRITERIA.—For a unit of general
local government, an insular area, or a State recipi-
ent that is a governmental jurisdiction certifying that
it is distressed, the following criteria shall apply:
‘‘(A) POVERTY RATE.—The average poverty
rate in the jurisdiction for the calendar year im-
mediately preceding the year in which its fiscal
year begins was equal to or greater than 125
percent of the average national poverty rate dur-
ing such calendar year (as determined according
to information of the Bureau of the Census).
‘‘(B) PER
CAPITA
INCOME.—The average
per capita income in the jurisdiction for the cal-
endar year immediately preceding the year in
which its fiscal year begins was less than 75 per-
cent of the average national per capita income
during such calendar year (as determined ac-
cording to information of the Bureau of the Cen-
sus).
‘‘(4) STATES.—In the case of a State, the Sec-
retary shall reduce the matching requirement under
subsection (a) as provided by the preceding para-
graphs, except that the certification shall be made
with respect to the area, as determined by the Sec-
retary, in which the activities are to be carried out.
‘‘(5) WAIVER IN DISASTER AREAS.—If a recipi-
ent is located in an area in which a declaration of
a disaster pursuant to the Robert T. Stafford Disaster
Relief and Emergency Assistance Act is in effect for
any part of a fiscal year, the Secretary may reduce
the matching requirement for that fiscal year under
subsection (a) during that fiscal year by up to 100
percent.
‘‘SEC. 408. PROGRAM REQUIREMENTS.
‘‘(a) APPLICATIONS.—
‘‘(1) FORM
AND
PROCEDURE.—The Secretary
shall 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 proce-
dures established by the Secretary. The Secretary may
not give preference or priority to any application 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 follow-
ing information:
‘‘(A) GRANTS
FOR
PERMANENT
HOUSING
DEVELOPMENT ACTIVITIES.—In the case of an
application for a grant available for use for ac-
tivities under subtitle B or an application for a
grant available for use under subtitle C for per-
manent housing development assistance—
‘‘(i) a description of the permanent
housing development activities to be as-
sisted;
‘‘(ii) a description of the entities that
will carry out such activities and the pro-
grams for carrying out such activities; and
‘‘(iii) assurances satisfactory to the
Secretary that the facility will comply with
the requirement under subsection (j).
‘‘(B) FLEXIBLE
BLOCK
GRANT
HOMELESS
ASSISTANCE.—In the case of an application for
a grant available for use for activities under sub-
title 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 comply
with the requirement under subsection (j);
‘‘(iii) in the case of a grant for a sup-
portive housing facility assisted under this
title that does not receive assistance under
paragraph (1) or (2) of section 421(a), an-
nual assurances during the period specified
in the application that the facility will be
operated for the purpose specified in the ap-
plication 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 not later than the ex-
piration of the 12-month period beginning
upon notification of an award of grant as-
sistance, unless the application proposes
providing supportive housing assisted under
section 421(a)(3) or housing that will even-
tually be owned or controlled by the families
and individuals served; except that a project
sponsor may obtain ownership or control of
a suitable site different from the site speci-
fied in the application.
‘‘(C) ALL GRANTS.—In the case of an appli-
cation for any grant under this title—
‘‘(i) a description of the size and char-
acteristics of the population, including spe-
cific references to populations with special
needs, that will be served by the eligible ac-
tivities 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;
‘‘(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 Reha-
bilitation Act of 1973, and the Age Dis-
crimination Act of 1975, and will affirma-
tively further fair housing; and
‘‘(v) a statement of whether the appli-
cant will or will not include, as a portion
of its supplementation amount required
under section 407(a), the cost or value of
donated services.
‘‘(b) REQUIRED AGREEMENTS.—The Secretary may
not provide a grant under this title for any applicant unless
the applicant agrees—
‘‘(1) to ensure that the eligible activities carried
out with grant amounts will be carried out in accord-
ance 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 determines is
necessary to facilitate the adequate provision of sup-
portive services to the residents and users of the facil-
ity or shelter;
‘‘(4) to monitor and report under section 431 to
the Secretary on the progress of the eligible activities
carried out with grant amounts;
‘‘(5) to develop and implement procedures to en-
sure (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 loca-
tion 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 employ-
ment, volunteer services, or otherwise, in carrying out
eligible activities assisted with grant amounts; and
‘‘(7) to comply with such other terms and condi-
tions as the Secretary may establish to carry out this
title in an effective and efficient manner.
‘‘(c) OCCUPANCY CHARGE.—Any homeless person or
family residing in a dwelling unit assisted under this title
may be required to pay an occupancy charge in an amount
determined by the grantee providing the assistance, which
may not exceed an amount equal to 30 percent of the ad-
justed income (as such term is defined in section 3(b) of
the United States Housing Act of 1937 or any other subse-
quent provision of Federal law defining such term for pur-
poses 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 housing.
‘‘(d) FLOOD PROTECTION STANDARDS.—Flood protec-
tion standards applicable to housing acquired, rehabili-
tated, constructed, or assisted with grant amounts provided
under this title shall be no more restrictive than the stand-
ards 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 immediately
before the enactment of the Homeless Housing Programs
Consolidation and Flexibility Act.
‘‘(e) PARTICIPATION OF CITIZENS AND OTHERS.
‘‘(1) IN GENERAL.—Each grantee shall—
‘‘(A) each fiscal year, make available to its
citizens, public agencies, and other interested
parties information concerning the amount of as-
sistance the jurisdiction expects to receive and
the range of activities that may be undertaken
with the assistance;
‘‘(B) publish the proposed application in a
manner that, in the determination of the Sec-
retary, affords affected citizens, public agencies,
and other interested parties a reasonable oppor-
tunity to examine its content and to submit com-
ments on it;
‘‘(C) each fiscal year, hold one or more pub-
lic hearings to obtain the views of citizens, public
agencies, and other interested parties on the
housing needs of the jurisdiction; and
‘‘(D) provide citizens, public agencies, and
other interested parties with reasonable access to
records regarding any uses of any assistance the
grantee may have received under this subtitle
during the preceding 5 years.
‘‘(2) ELECTRONIC ACCESS.—A grantee may com-
ply with the requirement under subparagraphs (A),
(B), and (D) of paragraph (1) by making the infor-
mation available through interactive computer or tele-
phone services or other electronic information net-
works and systems appropriate for making such in-
formation widely available to the public.
‘‘(3) NOTICE AND COMMENT.—Before submitting
any substantial amendment to an application under
this Act, a grantee shall provide citizens with reason-
able notice of, and opportunity to comment on, the
amendment.
‘‘(4) CONSIDERATION OF COMMENTS.—A grantee
shall consider any comments or views of citizens in
preparing a final application or amendment to an
application for submission. A summary of such com-
ments or views shall be attached when an application
or amendment to an application is submitted. The
submitted application or amendment shall be made
available to the public.
‘‘(5) AUTHORITY OF SECRETARY.—The Secretary
shall establish procedures appropriate and practicable
for providing a fair hearing and timely resolution of
citizen complaints related to applications under this
subtitle.
‘‘(6) HOMELESS
INDIVIDUALS.—The Secretary
shall, by regulation, require each grantee to ensure
that each project sponsor assisted by the grantee pro-
vides for the participation of not less than 1 homeless
person or former homeless person on the board of di-
rectors or other equivalent policymaking entity of the
project sponsor, to the extent that such sponsor con-
siders and makes policies and decisions regarding
any activity or facility, supportive services, or assist-
ance provided with grant amounts under this title.
The Secretary shall provide that a grantee may grant
waivers to project sponsors unable to meet the require-
ment under the preceding sentence if the sponsor
agrees to otherwise consult with homeless or formerly
homeless persons in considering and making 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 previously
used, or designated for use, to assist homeless persons.
‘‘(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 for
administrative purposes—
‘‘(1) an amount not exceeding 5 percent of such
grant amount; or
‘‘(2) if the grantee implements use of a standard-
ized homeless database management system to record
and assess data on the usage of homeless housing,
services, and client needs, and on the number and
other information related to populations with special
needs, an amount not exceeding 7.5 percent of such
grant amount.
‘‘(h) HOUSING QUALITY.—
‘‘(1) REQUIREMENT.—Assistance may not be
provided with grant amounts made available for use
under this title for any permanent housing develop-
ment, dwelling unit, supportive housing facility, or
emergency shelter that fails to comply with the hous-
ing 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 correction.
‘‘(2) APPLICABLE
STANDARDS.—The housing
quality standards applicable under this subsection to
permanent housing, a dwelling unit, supportive hous-
ing facility, or emergency shelter shall be—
‘‘(A) in the case of permanent housing, a
unit, facility, or shelter located in a jurisdiction
which has in effect laws, regulations, standards,
or codes regarding habitability of such housing,
units, facilities, or shelters that provide protec-
tion to residents of the dwellings that is equal to
or greater than the protection provided under the
housing quality standards established under
paragraph (3), such applicable laws, regulations,
standards, or codes; or
‘‘(B) in the case of permanent housing, a
unit, facility, or shelter 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 STANDARDS.—
The Secretary shall establish housing quality stand-
ards under this paragraph that ensure that perma-
nent housing, dwelling units, supportive housing fa-
cilities, and emergency shelters assisted under this
title are safe, clean, and healthy. Such standards shall
include requirements relating to habitability, includ-
ing maintenance, health and sanitation factors, con-
dition, and construction of dwellings. The Secretary
shall differentiate between major and minor viola-
tions of such standards and may establish separate
standards for permanent housing, 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 violates program re-
quirements, the project sponsor may terminate assistance
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) USE RESTRICTIONS.—
‘‘(1) ACQUISITION, REHABILITATION, AND
NEW
CONSTRUCTION.—
‘‘(A) IN GENERAL.—Except as provided in
subparagraph (B), each housing facility assisted
under subtitle B or subtitle C shall be operated
as housing for the purpose specified in the appli-
cation for assistance with amounts under this
title for not less than 20 years after such facility
is initially placed in service pursuant to such
assistance.
‘‘(B) EXCEPTIONS.—
(i) INABILITY TO OPERATE FACILITY.—
If, within such 20-year period, the need for
maintaining the facility as housing for the
purpose specified in the application for as-
sistance ceases to exist (as determined by
the Secretary pursuant to a recommenda-
tion by the chief executive officer of the ap-
propriate unit of general local government
or project sponsor, taking into consideration
the comprehensive housing affordability
strategy of the jurisdiction), or the project
sponsor is unable to operate the facility as
supportive housing, the facility may be used
as affordable housing (in accordance with
section 215 of the Cranston-Gonzalez Na-
tional Affordable Housing Act).
‘‘(ii) APPLICABILITY OF OTHER PRO-
GRAM RESTRICTION.—If the housing facility
receives assistance under any other Federal
program (including assistance under section
42 of the Internal Revenue Code of 1986)
for low-income families, homeless person, or
any other use consistent with assistance
under this title, and the use restriction
under such program is less than 20 years,
the restriction under such program shall
apply.
‘‘(2) OTHER ASSISTANCE.—Each housing facility
assisted under subtitle C shall be operated for the pur-
poses specified in the application for assistance with
amounts under this title for the duration of the period
covered by the grant.
‘‘(3) CONVERSION.—Notwithstanding paragraphs
(1) and (2), if the Secretary determines that a hous-
ing facility is no longer needed for use as housing for
the purposes specified in the application for assist-
ance and approves the use of the facility for the direct
benefit of low-income persons pursuant to a request
for such use by the project sponsor, the Secretary may
authorize the sponsor to convert the facility to such
use.
‘‘(k) REPAYMENT OF ASSISTANCE AND PREVENTION OF
UNDUE BENEFITS.—
‘‘(1) REPAYMENT.—If a facility assisted under
subtitle B or subtitle C violates the requirement under
subsection (j)(1)(A) or (j)(1)(B)(ii) of this section
during the 10-year period beginning upon placement
of the facility in service pursuant to such assistance,
the Secretary shall require the grantee to repay to the
Secretary 100 percent of any grant amounts received
for such facility under such paragraph. If such a fa-
cility violates such requirement after such 10-year pe-
riod, the Secretary shall require the grantee to repay
the percentage of any grant amounts received for such
facility that is equal to 100 percent minus 10 per-
centage points for each year in excess of 10 that the
facility is operated as supportive housing.
‘‘(2) PREVENTION OF UNDUE BENEFITS.—Except
as provided in paragraph (3), upon any sale or other
disposition of a facility assisted under subtitle B or
C occurring before the expiration of the 20-year pe-
riod beginning on the date that the facility is placed
in service, the project sponsor shall comply with such
terms and conditions as the Secretary may prescribe
to prevent the sponsor from unduly benefiting from
such sale or disposition.
‘‘(3) EXCEPTION.—Paragraphs (1) and (2) shall
not apply to any sale or disposition of a facility that
results in the use of the facility for the direct benefit
of very low-income families if all of the proceeds are
used to provide housing meeting the requirements of
subtitle B or C.
‘‘(4) FAILURE TO OBTAIN SITE.—If a grantee of
assistance made available for use under this title obli-
gates assistance for a housing facility other than a fa-
cility under section 421(a)(3) or housing that will
eventually be owned or controlled by the families and
individuals served, and the project sponsor fails to ob-
tain ownership or control of a suitable site for a pro-
posed supportive housing facility during the 12-month
period beginning upon the notification of an award
of grant assistance, the grantee shall recapture the as-
sistance and make such assistance available under
this subtitle.
‘‘(l) LOCAL BOARDS.—
‘‘(1) ESTABLISHMENT AND FUNCTION.—The head
of the executive branch of government of each grantee
shall establish and appoint members to a local board,
which shall assist the jurisdiction in—
‘‘(A) determining whether the grant should
be administered by the jurisdiction, a public
agency, a private nonprofit organization, the
State, or the Secretary;
‘‘(B) developing the application under sec-
tion 408;
‘‘(C) overseeing the activities carried out
with assistance under this title; and
‘‘(D) preparing the performance report
under section 431.
‘‘(2) COMPOSITION OF LOCAL BOARDS.—
‘‘(A) NOMINATION.—Members of a local
board appointed to meet the requirements of sub-
paragraph (D) shall be nominated by persons,
other than governmental officials or entities, that
represent the groups listed in subparagraph (D).
‘‘(B) PRIORITY.—Persons who will improve
access to a broad range of services for homeless
persons and who are sensitive to the varying
needs of homeless persons, including veterans, the
mentally ill, families with children, young per-
sons, battered spouses, victims of substance
abuse, and persons with AIDS, shall be given
preference when selecting local board members.
‘‘(C) COMMUNITY SUPPORT CONSIDERED.—
In appointing members to the local board, the
chief executive of each grantee shall consider the
extent of support for the nominee in the commu-
nity which the board shall serve.
‘‘(D) MAJORITY.—Not less than 51 percent
of the members of a local board shall be composed
of—
‘‘(i) homeless or formerly homeless per-
sons;
‘‘(ii) persons who act as advocates for
homeless persons; and
‘‘(iii) persons who provide assistance
to homeless persons, including representa-
tives of local veterans organizations and
veteran service providers who assist home-
less veterans.
‘‘(E) OTHER
LOCAL
BOARD
MEMBERS.—
After the requirements of subparagraph (D) are
met, other members of a local board shall be cho-
sen from—
‘‘(i) members of the business commu-
nity of the jurisdiction receiving the grant;
‘‘(ii) members of neighborhood advo-
cates in the jurisdiction receiving the grant;
and
‘‘(iii) government officials of the juris-
diction receiving the grant.
‘‘(3) WAIVER
OF
REQUIREMENTS
FOR
LOCAL
BOARD.—The Secretary may waive the requirements
of this subsection if the jurisdiction has an existing
board that substantially meets the requirements of
this subsection.
‘‘(m) COORDINATION OF HOMELESS PROGRAMS.—
‘‘(1) PURPOSE.—The purpose of the consultation
and coordination required under this subsection is to
provide various services, activities, and assistance for
homeless persons and families in an efficient, effec-
tive, and targeted manner designed to meet the com-
prehensive needs of the homeless.
‘‘(2) IN
GENERAL.—The Chairperson of the
Interagency Council on the Homeless shall consult
and coordinate with the Secretary of Housing and
Urban Development, the Secretary of Health and
Human Services, the Secretary of Labor, the Sec-
retary of Education, the Secretary of Veterans Affairs,
and the Secretary of Agriculture and shall ensure that
assistance for federally funded activities for the home-
less is made available, to the greatest extent prac-
ticable, in conjunction and coordination with assist-
ance for other federally funded activities for the home-
less 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 greatest extent
practicable, in coordination and in conjunction 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,
including homeless veterans, or homeless families that
are funded (in whole or in part) with amounts pro-
vided by the Federal Government (other than amounts
provided under this title) and includes—
‘‘(A) the programs for health care under sec-
tions 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 Emergency
Food Assistance Act of 1983;
‘‘(D) the job training, housing, and medical
programs for homeless veterans of the Depart-
ment of Veterans Affairs;
‘‘(E) the job corps centers for homeless fami-
lies 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, in-
cluding homeless veterans, and families under
State programs funded under supplemental secu-
rity income programs under part A of title IV
or under title XVI 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 Chairperson of the Interagency Council on
the Homeless determines that adequate coordina-
tion 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)), the Chairperson of the
Interagency Council on the Homeless and the
Secretary, in consultation with the Interagency
Council on the Homeless, shall carry out a pro-
gram under subparagraph (B) to make compan-
ion services block grants available for such fiscal
year.
‘‘(B) 
COMPANION
SERVICE
BLOCK
GRANTS.—The block grant program under this
subparagraph shall provide block grants, using
amounts available pursuant to subparagraph
(C), to eligible grantees under this title to pro-
vide services of the type available under the pro-
grams referred to in paragraph (4) in connection
with housing assistance under this title.
‘‘(C) FUNDING.—
‘‘(i) IN
GENERAL.—Notwithstanding
any other provision of law, in any fiscal
year in which block grants are to be pro-
vided in accordance with subparagraph (A),
there shall be available for such block
grants, of the amount made available for
such fiscal year for each activity referred to
in paragraph (4), 10 percent of such
amount, as determined by the Secretary
and the Interagency Council on the Home-
less.
‘‘(ii) 
LIMITATION.—Notwithstanding
clause (i), the aggregate amount available
for companion services block grants under
this paragraph for a fiscal year shall not
exceed the total amount made available pur-
suant to section 435 for housing assistance
under this title. If, for any fiscal year, the
amount determined under clause (i) exceeds
such amount, the Secretary shall reduce the
percentage under clause (i) for such year so
that the aggregate amount made available
for companion services block grants under
this paragraph from the amounts for each
activity referred to in paragraph (4) is
equal to the total amount made available
pursuant to section 435 for housing assist-
ance under this title.
‘‘(D) TRANSFER AUTHORITY.—Except to the
extent that the authority of the Secretary and the
Chairperson of the Interagency Council on the
Homeless is limited by appropriations, and with
the concurrence of the head of the affected agency
and upon advance approval of the Committees
on Appropriations and the authorizing commit-
tees of the House of Representatives, and the
Senate, the Secretary and the Chairperson of the
Interagency Council on the Homeless shall trans-
fer funds made available under subparagraph
(C) to the companion services block grant for fed-
erally funded activities, functions, or programs
for the homeless.
‘‘(E) REPORT.—Not later than the first
quarter of the first full fiscal year after the date
of the enactment of the Homeless Housing Pro-
grams Consolidation and Flexibility Act and
each quarter thereafter, the Secretary and the
Chairperson of the Interagency Council on the
Homeless shall report to Congress on—
‘‘(i) the need for any reprogramming
or transfer of funds appropriated for feder-
ally funded activities, functions, or pro-
grams for the homeless; and
‘‘(ii) any funds appropriated for feder-
ally funded activities, functions, or pro-
grams for the homeless that were repro-
grammed or transferred during the quarter
covered by the report.
‘‘(n) CONSULTATION REGARDING USE OF NATIONAL
GUARD FACILITIES AS HOMELESS SHELTERS.—The Sec-
retary may not provide a grant for a fiscal year from
amounts for such year allocated under section 406(c) for
use under subtitle C for a State unless the State has, con-
sulted with the Secretary regarding the possibility of mak-
ing any space at National Guard facilities under the juris-
diction of the State available, during such fiscal year, for
use by homeless organizations to provide shelter to homeless
persons, but only at the times that such space is not actively
being used for National Guard purposes or other public
purposes already undertaken.
‘‘SEC. 409. SUPPORTIVE SERVICES.
‘‘(a) REQUIREMENT.—To the extent allowed by this
title, each project sponsor administering permanent housing
development assistance provided with amounts under this
title or a supportive housing facility or emergency shelter
assisted with such amounts shall provide supportive services
for residents of the dwelling units or facility or shelter as-
sisted. The array of supportive services provided may be
designed by the grantee or the project sponsor administering
the assistance, facility, or shelter. A project sponsor admin-
istering a supportive housing facility shall provide support-
ive services for other homeless persons using the facility.
‘‘(b) 
TARGETING
POPULATIONS
WITH
SPECIAL
NEEDS.—Supportive services provided with grant amounts
under this title shall address the special needs of homeless
persons (such as homeless persons with disabilities, homeless
persons with acquired immunodeficiency syndrome and re-
lated diseases, homeless persons who have chronic problems
with alcohol or drugs (or both), veterans who are homeless,
and homeless families with children) intended to be served.
‘‘(c) SERVICES.—Supportive services may include ac-
tivities such as—
‘‘(1) establishing and operating a child care serv-
ices program for homeless families;
‘‘(2) establishing and operating an employment
assistance program;
‘‘(3) providing outpatient health services, food,
and case management;
‘‘(4) providing assistance in obtaining perma-
nent housing, employment counseling, and nutritional
counseling;
‘‘(5) providing security arrangements necessary
for the protection of residents of supportive housing or
emergency shelters and for homeless persons using
supportive housing facilities;
‘‘(6) providing assistance in obtaining other Fed-
eral, State, and local assistance available for such
residents and persons (including mental health bene-
fits, employment counseling, and medical assistance,
but not including major medical equipment); and
‘‘(7) providing other appropriate services.
‘‘(d) PROVISION OF SERVICES.—Supportive services
provided with grant amounts under this title may be pro-
vided directly by the grantee, by the project sponsor admin-
istering the permanent housing development assistance or
the facility or shelter, or by contract with other public or
private service providers. Such services provided in connec-
tion with a supportive housing facility may be provided
to homeless persons who do not reside in the supportive
housing, but only to the extent consistent with the com-
prehensive housing affordability strategy under section 105
of the Cranston-Gonzalez National Affordable Housing Act
for the applicable jurisdiction.
‘‘SEC. 410. NONDISCRIMINATION IN PROGRAMS AND ACTIVI-
TIES.
No person in the United States shall on the basis of
race, color, national origin, religion, or sex be excluded from
participation in, be denied the benefits of, or be subjected
to discrimination under any program or activity funded
in whole or in part with funds made available under this
subtitle. Any prohibition against discrimination on the
basis of age under the Age Discrimination Act of 1975 or
with respect to an otherwise qualified handicapped individ-
ual, as provided in section 504 of the Rehabilitation Act
of 1973, shall also apply to any such program or activity.
‘‘Subtitle B—Permanent Housing
Development Activities
‘‘SEC. 411. USE OF AMOUNTS AND GENERAL REQUIRE-
MENTS.
‘‘(a) USE OF AMOUNTS FOR PERMANENT HOUSING
DEVELOPMENT.—
‘‘(1) AUTHORIZED USE.—A State, metropolitan
city, or urban county that receives a grant under sec-
tion 402(b)(2) from amounts allocated for use under
this subtitle may use grant amounts (and any supple-
mental amounts provided under section 407) only to
carry out permanent housing development activities
within such State, metropolitan city, or urban coun-
ty. For purposes of this subtitle, the term ‘permanent
housing development activities’ means activities to
construct, substantially rehabilitate, or acquire struc-
tures to provide permanent housing, including the
capitalization of a dedicated project account from
which long-term assistance payments (which may in-
clude operating costs or rental assistance) can be
made in order to facilitate such activities, and activi-
ties under section 441 of the Stewart B. McKinney
Homeless Assistance Act, as in effect on October 31,
1997 (subject to the limitation in section 406(b)(3) of
this Act).
‘‘(2) USE FOR SUPPORTIVE SERVICES PROHIB-
ITED.—Amounts allocated for use under this subtitle
may not be used for supportive services activities.
‘‘(b) USE THROUGH NONPROFIT ORGANIZATIONS.—
‘‘(1) IN GENERAL.—A grantee that receives grant
amounts for a fiscal year for use under this subtitle
may, pursuant to section 404, provide such amounts
to units of general local government and private non-
profit organizations for use in accordance with this
subtitle, except that the grantee shall ensure that more
than 50 percent of the amounts received by the grant-
ee for the fiscal year are used through private non-
profit organizations.
‘‘(2) WAIVER OF USE OF NONPROFIT REQUIRE-
MENT.—The Secretary may waive the requirement
under paragraph (1) that a grantee ensure that more
than 50 percent of the amounts received by the grant-
ee for the fiscal year are used through private non-
profit organizations if the Secretary determines that
there are not sufficient private nonprofit organiza-
tions available to the grantee to meet that require-
ment.
‘‘(c) ADMINISTRATIVE FEE.—To the extent provided in
section 408(g), grant amounts provided under this subtitle
may be used by the project sponsor providing such assist-
ance for costs of administering such assistance.
‘‘(d) 
TARGETING
POPULATIONS
WITH
SPECIAL
NEEDS.—To the maximum extent practicable, a grantee
shall provide for use of grant amounts made available
under this subtitle in a manner that provides permanent
housing for homeless persons with disabilities, homeless per-
sons with acquired immunodeficiency syndrome or related
diseases, homeless persons who have chronic problems with
alcohol or drugs (or both), homeless families with children,
and veterans who are homeless.
‘‘SEC. 412. PERMANENT HOUSING DEVELOPMENT.
‘‘(a) IN GENERAL.—Housing shall be considered per-
manent housing for purposes of this title if the housing—
‘‘(1) provides long-term housing for homeless per-
sons;
‘‘(2) complies with any applicable State and
local housing codes, licensing requirements, or other
requirement in the jurisdiction in which the housing
is located, including any applicable State or local re-
quirements regarding the number of occupants in
such a facility; and
‘‘(3) complies with the requirement under section
409(a) regarding providing supportive services for
homeless persons.
‘‘(b) CLARIFICATION.—Permanent housing may—
‘‘(1) be restricted for occupancy by homeless per-
sons with disabilities;
‘‘(2) consist of or contain full dwelling units or
dwelling units that do not contain bathrooms or
kitchen facilities; and
‘‘(3) be provided in the form of rental housing,
cooperative housing, shared living arrangements, sin-
gle family housing, or other types of housing arrange-
ments.
‘‘Subtitle C—Flexible Block Grant
Homeless Assistance
‘‘SEC. 421. ELIGIBLE ACTIVITIES.
‘‘(a) IN GENERAL.—Grant amounts allocated for use
under this subtitle may be used only for carrying out the
following activities:
‘‘(1) ACQUISITION AND REHABILITATION OF SUP-
PORTIVE HOUSING.—For acquisition or rehabilitation
of an existing structure (including a small commer-
cial property or office space) to provide supportive
housing other than emergency shelter or to provide
supportive services; the repayment of any outstanding
debt owed on a loan made to purchase an existing
structure for use as supportive housing shall be con-
sidered to be a cost of acquisition under this para-
graph if the structure was not used as supportive
housing or to provide supportive services, before as-
sistance is provided using grant amounts.
‘‘(2) NEW CONSTRUCTION OF SUPPORTIVE HOUS-
ING.—For new construction of a structure to be used
as supportive housing.
‘‘(3) LEASING
OF
SUPPORTIVE
HOUSING.—For
leasing of an existing structure or structures, or por-
tions thereof, to provide supportive housing or sup-
portive services during the period covered by the ap-
plication.
‘‘(4) OPERATING COSTS FOR SUPPORTIVE HOUS-
ING.—For covering operating costs of supportive
housing (which shall include capital costs for utiliz-
ing any interactive computer or telephone services
and other electronic information networks and sys-
tems appropriate for assisting homeless families); ex-
cept that grant amounts provided under this subtitle
may not be used to cover more than 75 percent of
the annual operating costs of such housing.
‘‘(5) HOMELESSNESS PREVENTION.—
‘‘(A) IN GENERAL.—For activities designed
to help persons (including veterans who are at
risk of becoming homeless, and families avoid be-
coming homeless), which shall include assistance
for making mortgage payments, rental payments,
and utility payments and any activities other
than those found by the Secretary to be inconsist-
ent with the purposes of this Act.
‘‘(B) PERSONS
ELIGIBLE
FOR
ASSIST-
ANCE.—Assistance under this paragraph may be
provided only to very low-income families who
have received eviction (or mortgage delinquency
or foreclosure) notices or notices of termination
of utility services and who—
‘‘(i) are unable to make the required
payments due to a sudden reduction in in-
come;
‘‘(ii) need such assistance to avoid
homelessness due to the eviction or termi-
nation of services; and
‘‘(iii) have a reasonable prospect of
being able to resume payments within a
reasonable period of time.
‘‘(C) LIMITATION.—Assistance under this
paragraph may be provided only if such assist-
ance will not supplant funding for preexisting
homelessness prevention activities from other
services.
‘‘(6) PERMANENT
HOUSING
DEVELOPMENT
AC-
TIVITIES.—For providing permanent housing develop-
ment activities as described in subtitle B.
‘‘(7) EMERGENCY SHELTER.—For—
‘‘(A) renovation, major rehabilitation, or
conversion of a building or buildings to be used
as emergency shelters;
‘‘(B) covering costs of supportive services in
connection with an emergency shelter, if such
services do not supplant any services provided by
the local government during any part of the 12-
month period ending on the date of the com-
mencement of the operation of the emergency
shelter; and
‘‘(C) covering costs relating to maintenance,
operation, insurance, utilities, and furnishings
for emergency shelters.
‘‘(8) SUPPORTIVE SERVICES.—To the extent pro-
vided in section 406, for covering costs of supportive
services provided to homeless persons in connection
with a permanent or supportive housing facility or
otherwise.
‘‘(9) TECHNICAL ASSISTANCE.—For technical as-
sistance in carrying out the purposes of this title, ex-
cept that the Secretary may provide such technical
assistance directly to any grantee, including non-
profit sponsors who are proposing project applica-
tions for populations with special needs.
‘‘(b) USE FOR HOUSING ACTIVITIES.—Of the aggregate
of any grant amounts provided to a grantee for a fiscal
year for use under this subtitle and the supplemental
amounts provided for such fiscal year by the grantee in ac-
cordance with section 407, the grantee shall ensure that an
amount that is not less than such grant amounts (less any
amount used pursuant to section 408(g)) is used for eligible
activities described in paragraphs (1) through (6) of sub-
section (a).
‘‘SEC. 422. USE OF AMOUNTS THROUGH PRIVATE NON-
PROFIT PROVIDERS.
‘‘(a) IN GENERAL.—In each fiscal year, each grantee
of amounts for use under this subtitle shall ensure that more
than 50 percent of the amounts received by the grantee for
such fiscal year are used for carrying out eligible activities
under section 421 through project sponsors that are private
nonprofit organizations.
‘‘(b) WAIVER.—The Secretary may waive the require-
ment under subsection (a) that a grantee ensure that more
than 50 percent of the amounts received by the grantee for
the fiscal year are used through private nonprofit organiza-
tions if the Secretary determines that there are not suffi-
cient private nonprofit organizations available to the grant-
ee to meet that requirement.
‘‘SEC. 423. SUPPORTIVE HOUSING.
‘‘(a) IN GENERAL.—Housing shall be considered sup-
portive housing for purposes of this subtitle if—
‘‘(1) the housing complies with the requirement
under section 409(a) regarding providing supportive
services for homeless persons;
‘‘(2) the housing complies with any applicable
State and local housing codes and licensing require-
ments in the jurisdiction in which the housing is lo-
cated; and
‘‘(3) the housing—
‘‘(A) is transitional housing; or
‘‘(B) is permanent supportive housing as
described in section 412.
‘‘(b) TRANSITIONAL HOUSING.—For purposes of this
section, the term ‘transitional housing’ means housing, the
purpose of which is to facilitate the movement of homeless
persons and families to permanent housing within 24
months or such longer period as the Secretary determines
necessary. Assistance may be denied for housing based on
a violation of this subsection only if a substantial number
of homeless persons or families have remained in the hous-
ing longer than such period.
‘‘(c) SINGLE ROOM OCCUPANCY DWELLINGS.—For
purposes of this section, a facility may provide supportive
housing or supportive services in dwelling units that do not
contain bathrooms or kitchen facilities and are appropriate
for use as supportive housing or in facilities containing
some or all such dwelling units.
‘‘(d) SAFE HAVEN HOUSING.—For purposes of this
section, supportive housing may be a structure or a clearly
identifiable portion of a structure that—
‘‘(A) provides housing and low-demand
services and referrals for homeless individual
with serious mental illness—
‘‘(i) who are currently residing pri-
marily in places not designed for, or ordi-
narily used as, a regular sleeping accommo-
dation for human beings; and
‘‘(ii) who have been unwilling or un-
able to participate in mental health or sub-
stance abuse treatment programs or to re-
ceive other supportive services; except that a
person whose sole impairment is substance
abuse shall not be considered an eligible
person;
‘‘(B) provides 24-hour residence for eligible
individuals who may reside for an unspecified
duration;
‘‘(C) provides private or semi-private ac-
commodations;
‘‘(D) may provide for the common use of
kitchen facilities, dining rooms, and bathrooms;
‘‘(E) may provide supportive services to eli-
gible persons who are not residents on a drop-in
basis; and
‘‘(F) provides occupancy limited to no more
than 25 persons.
‘‘SEC. 424. EMERGENCY SHELTER.
‘‘(a) IN GENERAL.—A facility shall be considered
emergency shelter for purposes of this subtitle if the facility
is designed to provide overnight sleeping accommodations
for homeless persons and complies with the requirements
under this section. An emergency shelter may include ap-
propriate eating and cooking accommodations.
‘‘(b) REQUIREMENTS.—Grant amounts under this sub-
title may be used for eligible activities under section
421(a)(7) relating to emergency shelter only if—
‘‘(1) the Secretary determines that—
‘‘(A) use of such amounts is necessary to
meet the emergency shelter needs of the jurisdic-
tion in which the facility is located; and
‘‘(B) the use of such amounts for such ac-
tivities will not violate the prohibition under sec-
tion 408(f); and
‘‘(2) the project sponsor agrees that it will—
‘‘(A) in the case of assistance involving
major rehabilitation or conversion of a building,
maintain the building as a shelter for homeless
persons and families for not less than a 10-year
period unless, within such 10-year period, the
need for maintaining the building as a full-time
shelter ceases to exist and the building is used for
the remainder of such period to carry out other
eligible activities under this subtitle;
‘‘(B) in the case of assistance involving re-
habilitation (other than major rehabilitation or
conversion of a building), maintain the building
as a shelter for homeless persons and families for
not less than a 3-year period;
‘‘(C) in the case of assistance involving only
activities described in subparagraphs (B) and
(C) of section 421(a)(7), provide services or shel-
ter to homeless persons and families at the origi-
nal site or structure or other sites or structures
serving the same general population for the pe-
riod during which such assistance is provided;
‘‘(D) comply with the standards of housing
quality applicable under section 408(h); and
‘‘(E) assist homeless persons in obtaining—
‘‘(i) appropriate supportive services,
including permanent housing, medical and
mental health treatment (including infor-
mation and counseling regarding the bene-
fits and availability of child immuniza-
tion), counseling, supervision, veterans ben-
efits, and other services essential for achiev-
ing independent living; and
‘‘(ii) other Federal, State, local, and
private assistance available for homeless
persons.
‘‘Subtitle D—Reporting, Definitions,
and Funding
‘‘SEC. 431. PERFORMANCE REPORTS BY GRANTEES.
‘‘(a) REQUIREMENT.—For each fiscal year, each grant-
ee under this title shall review and report, in a form accept-
able to the Secretary, on the progress it has made during
such fiscal year in carrying out the activities described in
the application resulting in such grant and the relationship
of such activities to the comprehensive housing affordability
strategy under section 105 of the Cranston-Gonzalez Na-
tional Affordable Housing Act for the applicable jurisdic-
tion.
‘‘(b) CONTENT.—Each report under this section for a
fiscal year shall—
‘‘(1) describe the use of grant amounts provided
to the grantee for such fiscal year;
‘‘(2) to the extent practicable until the develop-
ment of a reasonable methodology by the Secretary
and the Interagency Council on the Homeless, describe
the number of homeless persons and families, includ-
ing populations with special needs provided shelter,
housing, or assistance using such grant amounts;
‘‘(3) assess the relationship of such use to the
goals identified pursuant to section 105(b)(2) of the
Cranston-Gonzalez National Affordable Housing Act