Subtitle B—Other Housing Assistance Pro-
grams for the Homeless Under McKinney
Act
SEC. 421. SECTION 8 ASSISTANCE FOR SINGLE ROOM OCCU-
PANCY DWELLINGS.
(a) IN GENERAL.—Section 451 of the Stewart B.
McKinney Homeless Assistance Act (42 U.S.C. 11401(a)),
as so redesignated by section 411(3) of this Act, is amend-
ed—
(1) in the second sentence of subsection (c), in
the matter preceding paragraph (1), by striking
‘‘containing’’ and inserting the following: ‘‘for the
provision of assistance under this section that is spe-
cifically provided for in the comprehensive homeless
assistance described in the application under section
408 of the relevant eligible grantee and that con-
tains’’; and
(2) in subsection (j)(1), by inserting ‘‘recipient
under subtitle A,’’ after ‘‘authority,’’.
(b) FUNDING.—Section 451(a) of the Stewart B.
McKinney Homeless Assistance Act (42 U.S.C. 11401(a)),
as so redesignated by section 411(3) of this Act, is amend-
ed to read as follows:
‘‘(a) INCREASE IN BUDGET AUTHORITY.—The budg-
et authority available under section 5(c) of the United
States Housing Act of 1937 for assistance under section
8(e)(2) of such Act (as in effect immediately before Octo-
ber 1, 1991) is authorized to be increased by
$200,000,000 on or after October 1, 1996, by such sums
as may be necessary on or after October 1, 1997, by such
sums as may be necessary on or after October 1, 1998,
by such sums as may be necessary on or after October
1, 1999, and by such sums as may be necessary on or
after October 1, 2000.’’.
SEC. 422. SECTION 8 ASSISTANCE FOR SHELTER PLUS CARE
SINGLE ROOM OCCUPANCY DWELLINGS.
Title IV of the Stewart B. McKinney Homeless As-
sistance Act (42 U.S.C. 11361 et seq.) is amended by in-
serting after section 451, as so redesignated by section
411(3) of this Act, the following new section:
‘‘SEC. 452. SECTION 8 ASSISTANCE FOR SHELTER PLUS
CARE SINGLE ROOM OCCUPANCY DWELL-
INGS.
‘‘(a) PURPOSE.—The purpose of the program under
this section is to provide assistance for the moderate reha-
bilitation of single room occupancy housing to be made
available for rental, in connection with supportive services
funded from sources other than this section, to homeless
persons with disabilities (primarily persons who are seri-
ously mentally ill, have chronic problems with alcohol,
drugs, or both, or have acquired immunodeficiency syn-
drome and related diseases) and the families of such
persons.
‘‘(b) MODERATE REHABILITATION ASSISTANCE.—
The Secretary may use amounts made available to carry
out this section for moderate rehabilitation of single room
occupancy housing described in section 8(l) of the United
States Housing Act of 1937 for occupancy by eligible per-
sons in accordance with this section. Such amounts may
be used in connection with the moderate rehabilitation of
efficiency units if the building owner agrees to pay the
additional cost of rehabilitating and operating the effi-
ciency units.
‘‘(c) FUNDING LIMITATIONS.—
‘‘(1) TARGETED POPULATIONS.—To the maxi-
mum extent practicable, the Secretary shall reserve
not less than 50 percent of all amounts made avail-
able to carry out this section for homeless individ-
uals who are seriously mentally ill or have chronic
problems with alcohol, drugs, or both.
‘‘(2) GEOGRAPHICAL LIMITATION.—Of the as-
sistance made available under this section for any
fiscal year, not more than 10 percent may be used
for programs located within any one unit of general
local government.
‘‘(d) SUPPORTIVE SERVICES REQUIREMENTS.—
‘‘(1) REQUIREMENT OF MATCHING AMOUNTS.—
Each recipient of assistance under this section shall
supplement the assistance provided under this sec-
tion with an equal amount of funds for supportive
services from sources other than this section. Each
recipient shall certify to the Secretary its compliance
with this paragraph, and shall include with the cer-
tification a description of the sources and amounts
of such supplemental funds.
‘‘(2) 
DETERMINATION
OF
MATCHING
AMOUNTS.—In calculating the amount of supple-
mental funds provided under this section, a recipient
may include the value of any lease on a building, any
salary paid to staff to carry out the program of the
recipient, and the value of the time and services con-
tributed by volunteers to carry out the program of
the recipient at a rate determined by the Secretary.
‘‘(3) RECAPTURE.—If the supportive services
and funding for the supportive services required by
this subsection are not provided by a recipient, the
Secretary may recapture any unexpended housing
assistance provided under this section to the recipi-
ent.
‘‘(e) CONTRACT REQUIREMENTS.—Each contract for
annual contributions entered into by the Secretary with
a public housing agency to obligate budget authority made
available to carry out this section shall—
‘‘(1) commit the Secretary to make the author-
ity available to the public housing agency for an ag-
gregate period of 10 years, and require that any
amendments increasing the authority shall be avail-
able for the remainder of such 10-year period;
‘‘(2) provide the Secretary with the option to
renew the contract for an additional period of 10
years, subject to the availability of authority;
‘‘(3) provide that, notwithstanding any other
provision of law, first priority for occupancy of hous-
ing rehabilitated under this section shall be given to
homeless persons; and
‘‘(4) require installation in the housing assisted
of a sprinkler system that protects all major spaces,
hard-wired smoke detectors, and any other fire safe-
ty improvements as may be required by State or
local law.
For purposes of this subsection, the term ‘major spaces’
means hallways, large common areas, and other areas
specified in local fire, building, or safety codes.
‘‘(f) APPLICATIONS.—
‘‘(1) IN GENERAL.—An application for rental
housing assistance under this section shall be sub-
mitted by an applicant in such form and in accord-
ance with such procedures as the Secretary shall es-
tablish.
‘‘(2) MINIMUM
CONTENTS.—The 
Secretary
shall require that an application identify the need
for the assistance in the community to be served and
shall contain at a minimum—
‘‘(A) a request for housing assistance
under this section specifying the number of
units requested and the amount of necessary
budget authority;
‘‘(B) a description of the size and charac-
teristics of the population of eligible persons;
‘‘(C) an identification of the need for the
program in the community to be served;
‘‘(D) the identity of the proposed service
provider or providers (which may be, or include,
the applicant) and a statement of the qualifica-
tions of the provider or providers;
‘‘(E) a description of the supportive serv-
ices that the applicant proposes to assure will
be available for eligible persons;
‘‘(J) identification of the specific struc-
tures that the recipient is proposing for assist-
ance.
‘‘(g) SELECTION CRITERIA.—The Secretary shall es-
tablish selection criteria for a national competition for as-
sistance under this section which shall include—
‘‘(1) the ability of the applicant to develop and
operate the proposed assisted housing and support-
ive services program, taking into account the quality
of any ongoing program of the applicant;
‘‘(2) geographic diversity among the projects to
be assisted;
‘‘(3) the need for a program providing housing
assistance and supportive services for eligible per-
sons in the area to be served;
‘‘(4) the quality of the proposed program for
providing supportive services and housing assistance;
‘‘(5) the extent to which the proposed funding
for the supportive services is or will be available;
‘‘(6) the extent to which the project would meet
the needs of the homeless persons proposed to be
served by the program;
‘‘(7) the extent to which the program integrates
program recipients into the community served by the
program;
‘‘(8) the cost-effectiveness of the proposed pro-
gram; and
‘‘(9) such other factors as the Secretary speci-
fies in regulations to be appropriate for purposes of
carrying out the program established by this section
in an effective and efficient manner.
‘‘(h) PARTICIPATION OF HOMELESS INDIVIDUALS.—
The Secretary shall, by regulation, require each recipient
of assistance under this section to provide for the consulta-
tion and participation of not less than one homeless indi-
vidual or former homeless individual on the board of direc-
tors or other equivalent policymaking entity of the recipi-
ent, to the extent that such entity considers and makes
policies and decisions regarding any housing assisted
under this section or services for such housing. The Sec-
retary may grant waivers to recipients unable to meet the
requirement under the preceding sentence if the recipient
agrees to otherwise consult with homeless or formerly
homeless individuals in considering and making such poli-
cies and decisions.
‘‘(i) REQUIRED AGREEMENTS.—The Secretary may
not approve assistance under this section for an applicant
unless the applicant agrees—
‘‘(1) to operate the proposed program in ac-
cordance with the provisions of this section;
‘‘(2) to conduct an ongoing assessment of the
housing assistance and supportive services required
by the participants in the program;
‘‘(3) to ensure the adequate provision of sup-
portive services to the participants in the program;
‘‘(4) to comply with such other terms and con-
ditions as the Secretary may establish for purposes
of carrying out the program in an effective and effi-
cient manner; and
‘‘(5) to the maximum extent practicable, to in-
volve homeless individuals and families, through em-
ployment volunteer services, or otherwise, in con-
structing or rehabilitating housing assisted under
this section and in providing services required under
this section.
‘‘(j) HOUSING STANDARDS AND RENT REASONABLE-
NESS.—
‘‘(1) STANDARDS
REQUIRED.—The Secretary
shall require that—
‘‘(A) before any assistance may be pro-
vided to or on behalf of a person, each unit as-
sisted under this section shall be inspected by
the applicant directly or by another entity, in-
cluding the local public housing agency, to de-
termine that the unit meets the housing quality
standards under section 8 of the United States
Housing Act of 1937 and that the occupancy
charge for the dwelling unit is reasonable; and
‘‘(B) the recipient shall make at least an-
nual inspections of each unit assisted under this
section during the term of the contract for such
assistance.
‘‘(2) PROHIBITION.—No assistance may be pro-
vided under this section for a dwelling unit (A) for
which the occupancy charge is not reasonable, or (B)
which fails to meet the housing standards, unless the
owner promptly corrects the deficiency and the re-
cipient verifies the correction.
‘‘(k) TENANT RENT.—Each tenant of a dwelling unit
assisted under this section shall pay as rent an amount
determined in accordance with the provisions of section
3(a)(1) of the United States Housing Act of 1937.
‘‘(l) ADMINISTRATIVE FEES.—From amounts made
available to carry out this section, the Secretary shall
make amounts available to pay the entity administering
the housing assistance an administrative fee in an amount
determined appropriate by the Secretary for the costs of
administering the housing assistance.
‘‘(m) OCCUPANCY.—
‘‘(1) OCCUPANCY AGREEMENT.—The occupancy
agreement between a tenant and an owner of a
dwelling unit assisted under this section shall be for
at least 1 month.
‘‘(2) VACANCY PAYMENTS.—If an eligible per-
son vacates a dwelling unit assisted under this sec-
tion before the expiration of the occupancy agree-
ment, no assistance payment may be made with re-
spect to the unit after the month that follows the
month during which the unit was vacated, unless it
is occupied by another eligible person.
‘‘(n) TERMINATION OF ASSISTANCE.—
‘‘(1) AUTHORITY.—If an eligible individual who
receives assistance under this section violates pro-
gram requirements, the recipient may terminate as-
sistance in accordance with the process established
pursuant to paragraph (2).
‘‘(2) PROCEDURE.—In terminating assistance
under this paragraph, the recipient shall provide a
formal process that recognizes the rights of individ-
uals receiving such assistance to due process of law.
‘‘(o) DEFINITIONS.—For purposes of this section, the
following definitions shall apply:
‘‘(1) The term ‘acquired immunodeficiency syn-
drome and related diseases’ has the meaning given
such term in section 853 of the Cranston-Gonzalez
National Affordable Housing Act.
‘‘(2) The term ‘applicant’ means a State, unit
of general local government, Indian tribe, or public
housing agency.
‘‘(3) The term ‘eligible person’ means a home-
less person with disabilities (primarily persons who
are seriously mentally ill, have chronic problems with
alcohol, 
drugs, 
or 
both, 
or 
have 
acquired
immunodeficiency syndrome and related diseases)
and the family of such a person.
‘‘(4) The term ‘Indian tribe’ has the meaning
given such term in section 102 of the Housing and
Community Development Act of 1974.
‘‘(5) The term ‘nonprofit organization’ has the
meaning given such term by section 104 of the
Cranston-Gonzalez National Affordable Housing
Act, and includes community mental health centers
established as public nonprofit organizations.
‘‘(6) The term ‘person with disabilities’ has the
meaning given such term in section 811 of the Cran-
ston-Gonzalez National Affordable Housing Act.
‘‘(7) The term ‘public housing agency’ has the
meaning given such term in section 3(b) of the Unit-
ed States Housing Act of 1937.
‘‘(8) The term ‘recipient’ means an applicant
approved for participation in the program to provide
assistance under this section.
‘‘(9) The term ‘Secretary’ means the Secretary
of Housing and Urban Development.
‘‘(10) The term ‘seriously mentally ill’ means
having a severe and persistent mental or emotional
impairment that seriously limits a person’s ability to
live independently.
‘‘(11) The term ‘State’ means each of the sev-
eral States, the District of Columbia, the Common-
wealth of Puerto Rico, the Commonwealth of the
Northern Mariana Islands, the Virgin Islands,
Guam, American Samoa, and any other territory or
possession of the United States.
‘‘(12) The term ‘supportive services’ means as-
sistance that the Secretary determines (A) addresses
the special needs of eligible persons; and (B) pro-
vides appropriate services or assists such persons in
obtaining appropriate services, including health care,
mental health services, substance and alcohol abuse
services, child care services, case management serv-
ices, counseling, supervision, education, job training,
and other services essential for achieving and main-
taining independent living. Inpatient acute hospital
care shall not qualify as a supportive service.
‘‘(13) The term ‘unit of general local govern-
ment’ has the meaning given such term in section
102 of the Housing and Community Development
Act of 1974.
‘‘(p) AUTHORIZATION
OF
APPROPRIATIONS.—For
purposes of providing assistance under this section, there
are authorized to be appropriated $75,000,000 for fiscal
year 1997 and such sums as may be necessary for each
of fiscal years 1998, 1999, 2000, and 2001.’’.
SEC. 423. RURAL HOMELESSNESS GRANT PROGRAM.
(a) IN GENERAL.—Section 453 of the Stewart B.
McKinney Homeless Assistance Act, as so redesignated by
section 411(3) of this Act, is amended—
(1) in subsection (a), by striking ‘‘Secretary of
Housing and Urban Development’’ and inserting
‘‘Secretary of Agriculture’’; and
(2) in subsection (k), by striking paragraph (3)
and inserting the following new paragraph:
‘‘(3) The term ‘Secretary’ means the Secretary
of Agriculture.’’.
(b) AUTHORIZATION OF APPROPRIATIONS.—Section
453(l)(1) of the Stewart B. McKinney Homeless Assist-
ance Act (42 U.S.C. 11408(l)(1)), as so redesignated by
section 411(3) of this Act, is amended to read as follows:
‘‘(1) IN GENERAL.—There are authorized to be
appropriated to carry out this section $30,000,000
for fiscal year 1997 and such sums as may be nec-
essary for each of fiscal years 1998, 1999, 2000,
and 2001.’’.
SEC. 424. CLERICAL AMENDMENT.
The table of contents in section 101(b) of the Stewart
B. McKinney Homeless Assistance Act is amended by
striking the items relating to title IV and inserting the
following new items:
‘‘TITLE IV—HOUSING ASSISTANCE
‘‘Subtitle A—Flexible Grant Program
‘‘CHAPTER 1—GENERAL PROVISIONS
‘‘Sec. 401. Purposes.
‘‘Sec. 402. Authorization of appropriations.
‘‘Sec. 403. Definitions.
‘‘Sec. 404. Provision of grants.
‘‘Sec. 405. Comprehensive homeless assistance.
‘‘Sec. 406. Matching requirements.
‘‘Sec. 407. Responsibilities of grantees and project sponsors.
‘‘Sec. 408. Application.
‘‘Sec. 409. Allocation and distribution of funds.
‘‘Sec. 410. Administration of program.
‘‘Sec. 411. Citizen participation.
‘‘Sec. 412. Applicability of other provisions.
‘‘Sec. 413. Reports, reviews, and audits.
‘‘Sec. 414. Nondiscrimination in programs and activities.
‘‘Sec. 415. Consultation.
‘‘Sec. 416. Records, reports, and audits.
‘‘Sec. 417. Reports to Congress.
‘‘CHAPTER 2—ELIGIBLE ACTIVITIES
‘‘Sec. 431. Homelessness prevention.
‘‘Sec. 432. Emergency shelter.
‘‘Sec. 433. Supportive housing for the homeless.
‘‘Sec. 434. Safe havens for homeless individuals.
‘‘Sec. 435. Shelter plus care.
‘‘Sec. 436. Administrative and capacity-building expenses.
‘‘Sec. 437. Innovative homeless initiatives.
‘‘Sec. 438. Other approved activities.
‘‘Subtitle B—Other Permanent Housing Assistance Programs for the
Homeless
‘‘Sec. 451. Section 8 assistance for single room occupancy dwellings.
‘‘Sec. 452. Section 8 assistance for shelter plus care single room occupancy
dwellings.
‘‘Sec. 453. Rural homelessness grant program.
‘‘Sec. 454. Use of FMHA inventory for transitional housing for homeless
persons and for turnkey housing.’’.
Subtitle C—Miscellaneous Homeless Housing
Provisions
SEC. 431. STRATEGY TO ELIMINATE UNFIT TRANSIENT FA-
CILITIES.
Section 825(b) of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 11301 note) is
amended—
(1) in paragraph (2), by striking ‘‘and’’ at the
end;
(2) in paragraph (3), by striking the period at
the end and inserting ‘‘; and’’; and
(3) by adding at the end the following new
paragraph:
‘‘(4) that States and units of general local gov-
ernment shall eliminate the use of unfit transient fa-
cilities as housing for homeless families with children
not later than July 1, 1997, in the manner provided
under the strategy.’’.
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