I
103D CONGRESS
2D SESSION
H. R. 4578
To amend the Stewart B. McKinney Homeless Assistance Act to revise
and extend programs providing urgently needed assistance for the home-
less, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
JUNE 14, 1994
Mr. VENTO (for himself, Mrs. ROUKEMA, Mr. FRANK of Massachusetts, and
Mr. KENNEDY) introduced the following bill; which was referred jointly
to the Committees on Banking, Finance and Urban Affairs, Energy and
Commerce, and Ways and Means
A BILL
To amend the Stewart B. McKinney Homeless Assistance
Act to revise and extend programs providing urgently
needed assistance for the homeless, and for other
purposes.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Stewart B. McKinney Homeless Assistance Amendments
Act of 1994’’.
(b) TABLE OF CONTENTS.—The table of contents for
this Act is as follows:
Sec. 1. Short title and table of contents.
TITLE I—GENERAL PROVISIONS
Sec. 101. Budget compliance.
TITLE II—INTERAGENCY COUNCIL ON THE HOMELESS
Sec. 201. Authorization of appropriations.
Sec. 202. Chairperson.
Sec. 203. Extension.
TITLE III—FEDERAL EMERGENCY MANAGEMENT AGENCY FOOD
AND SHELTER PROGRAM
Sec. 301. Authorization of appropriations.
TITLE IV—HOUSING ASSISTANCE
Subtitle A—Reorganization of Certain McKinney Act Housing Provisions
Sec. 401. Flexible grant program.
Sec. 402. Regulations.
Sec. 403. Transition provisions.
Subtitle B—Other Housing Assistance Programs for the Homeless Under
McKinney Act
Sec. 411. Section 8 assistance for single room occupancy dwellings.
Sec. 412. Section 8 assistance for shelter plus care single room occupancy
dwellings.
Sec. 413. Rural homelessness grant program.
Sec. 414. Strategy to eliminate unfit transient facilities.
Sec. 415. Clerical amendment.
Subtitle C—Miscellaneous Homeless Housing Provisions
Sec. 421. Innovative homeless program.
Sec. 422. FHA single family property disposition.
TITLE V—HEALTH CARE FOR THE HOMELESS
Subtitle A—Categorical Grants for Primary Health Services and Substance
Abuse Services
Sec. 501. Authorization of appropriations.
Sec. 502. Establishment of program for prevention and treatment of substance
abuse among homeless individuals.
Subtitle B—Formula Grants to States for Assistance in Transition from
Homelessness
Sec. 511. Requirement of allotment for States.
Sec. 512. Authorization of appropriations.
Subtitle C—Categorical Grants Regarding Mental Illness and Substance
Abuse
Sec. 521. Treatment services from community-based providers.
TITLE VI—EDUCATION, TRAINING, AND COMMUNITY SERVICES
PROGRAMS
Sec. 601. Family support centers.
TITLE VII—HOMELESS PROGRAMS RELATING TO FEDERAL
WELFARE ASSISTANCE
Sec. 701. National homeless advocate demonstration grant program.
Sec. 702. Qualification of construction, rehabilitation, purchase, and rental of
permanent housing for homeless AFDC families as emergency
assistance under AFDC program.
TITLE I—GENERAL PROVISIONS
SEC. 101. BUDGET COMPLIANCE.
(a) IN GENERAL.—This Act and the amendments
made by this Act may not be construed to provide for new
budget authority, budget outlays, or new entitlement au-
thority, for fiscal year 1995, 1996, or 1997 in excess of
the appropriate aggregate levels established by the concur-
rent resolution on the budget for such years for the pro-
grams authorized by this Act and the amendments made
by this Act.
(b) DEFINITIONS.—For purposes of this section, the
terms ‘‘budget authority’’, ‘‘budget outlays’’, ‘‘concurrent
resolution on the budget’’, and ‘‘entitlement authority’’
have the meanings given such terms in section 3 of the
Congressional Budget Act of 1974.
TITLE II—INTERAGENCY
COUNCIL ON THE HOMELESS
SEC. 201. AUTHORIZATION OF APPROPRIATIONS.
Section 208 of the Stewart B. McKinney Homeless
Assistance Act (42 U.S.C. 11318) is amended to read as
follows:
‘‘SEC. 208. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to carry out
this title $1,609,890 for fiscal year 1995, $1,658,187 for
fiscal year 1996, and such sums as may be necessary for
fiscal year 1997.’’.
SEC. 202. CHAIRPERSON.
Section 202(b) of the Stewart B. McKinney Homeless
Assistance Act (42 U.S.C. 11312(b) is amended to read
as follows:
‘‘(b) CHAIRPERSON AND VICE CHAIRPERSON.—
‘‘(1) CHAIRPERSON.—The Council shall elect an
Chairperson from among its members, who shall
have a term of 2 years. A member of the Council by
reason of any of paragraphs (1) through (16) of
subsection (a) who serves as Chairperson for a term
may not be elected to serve as Chairperson for the
succeeding term. The preceding sentence shall not
apply to any member serving as Chairperson on the
date of the enactment of the Stewart B. McKinney
Homeless Assistance Amendments Act of 1994.
‘‘(2) VICE
CHAIRPERSON.—The Vice Chair-
person of the Council shall have a term of 2 years
and shall be—
‘‘(A) the Secretary of Housing and Urban
Development, if such Secretary is not elected as
the Chairperson of the Council; or
‘‘(B) elected by the Council from among its
members, if the Secretary of Housing and
Urban Development is elected as the Chair-
person of the Council.’’.
SEC. 203. EXTENSION.
Section 209 of the Stewart B. McKinney Homeless
Assistance Act (42 U.S.C. 11319) is amended by striking
‘‘October 1, 1994’’ and inserting ‘‘October 1, 1997’’.
TITLE 
III—FEDERAL 
EMER-
GENCY MANAGEMENT AGEN-
CY FOOD AND SHELTER PRO-
GRAM
SEC. 301. AUTHORIZATION OF APPROPRIATIONS.
Section 322 of the Stewart B. McKinney Homeless
Assistance Act (42 U.S.C. 11352) is amended to read as
follows:
‘‘SEC. 322. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated to carry out
this title $193,186,800 for fiscal year 1995, $198,982,404
for fiscal year 1996, and such sums as may be necessary
for fiscal year 1997.’’.
TITLE IV—HOUSING ASSISTANCE
Subtitle A—Reorganization of Cer-
tain McKinney Act Housing Pro-
visions
SEC. 401. FLEXIBLE GRANT PROGRAM.
Title IV of the Stewart B. McKinney Homeless As-
sistance Act (42 U.S.C. 11361 et seq.) is amended—
(1) by striking subtitles A, B, C, D, and F;
(2) by striking the headings for subtitles E and
G;
(3) by redesignating section 441, 491, and 592
(as added by section 1414 of the Housing and Com-
munity Development Act of 1992) as sections 451,
453, and 454, respectively;
(4) by striking sections 442 and 443; and
(5) by inserting after the heading for the title
the following:
‘‘Subtitle A—Flexible Grant
Program
‘‘CHAPTER 1—GENERAL PROVISIONS
‘‘SEC. 401. PURPOSES.
‘‘The purposes of this subtitle are—
‘‘(1) to expand and reorganize the Federal com-
mitment to alleviate homelessness by providing
States, Indian tribes, and localities with the re-
sources to more efficiently and effectively design a
comprehensive system to address the shelter, service,
and permanent housing needs of homeless individ-
uals and families in the United States;
‘‘(2) to help very low-income families avoid be-
coming homeless;
‘‘(3) to meet the emergency shelter needs of
homeless persons and families;
‘‘(4) to provide transitional or specialized per-
manent housing to facilitate the movement of home-
less persons and families to independent living;
‘‘(5) to provide supportive services to help
homeless persons and families lead independent and
dignified lives;
‘‘(6) to encourage the cooperation and partici-
pation of the States and units of general local gov-
ernment, together with private nonprofit organiza-
tions, in planning and implementing comprehensive
homeless assistance programs;
‘‘(7) to reduce the costs to States, units of gen-
eral local government, and private nonprofit organi-
zations in applying for and using Federal housing
assistance for families and persons who are home-
less; and
‘‘(8) to begin meeting the needs of most of the
Nation’s homeless population through the existing
Federal programs providing basic assistance for low-
income families and persons.
‘‘SEC. 402. AUTHORIZATION OF APPROPRIATIONS.
‘‘There are authorized to be appropriated—
‘‘(1) $635,000,000 for fiscal year 1995 for
grants in accordance with section 403 of the Stewart
B. McKinney Homeless Assistance Amendments Act
of 1994; and
‘‘(2) $786,620,000 for fiscal year 1996, and
such sums as may be necessary for fiscal year 1997,
for grants under this subtitle.
Any amounts appropriated pursuant to this section shall
remain available until expended.
‘‘SEC. 403. DEFINITIONS.
‘‘For purposes of this subtitle, the following defini-
tions shall apply:
‘‘(1) The term ‘allocation unit of general local
government’ means a metropolitan city and an
urban county.
‘‘(2) The term ‘applicant’ means an eligible
grantee that submits an application under section
408 for a grant under this subtitle.
‘‘(3) The term ‘disability’ means—
‘‘(A) a disability as defined in section 223
of the Social Security Act;
‘‘(B) to be determined to have, pursuant to
regulations issued by the Secretary, a physical,
mental, or emotional impairment which (i) is
expected to be a long-continued and indefinite
duration, (ii) substantially impedes an individ-
ual’s ability to live independently, and (iii) of
such a nature that such ability could be im-
proved by more suitable housing conditions;
‘‘(C) a developmental disability as defined
in section 102 of the Developmental Disabilities
Assistance and Bill of Rights Act; or
‘‘(D) 
the 
disease 
of 
acquired
immunodeficiency syndrome or any conditions
arising from the etiologic agency for acquired
immunodeficiency syndrome.
Subparagraph (D) shall not be construed to limit eli-
gibility under subparagraphs (A) through (C) or the
provisions referred to in subparagraphs (A) through
(C).
‘‘(4) The term ‘eligible grantee’ means—
‘‘(A) an allocation unit of general local
government, Indian Tribe, or insular area that
elects to administer a grant under section
410(a)(1);
‘‘(B) a public agency or a private nonprofit
organization (or a consortium of such organiza-
tions) designated by the Secretary under section
410(a)(3) to administer grant amounts for an
allocation unit of general local government, In-
dian tribe, or insular area;
‘‘(C) an entity eligible to receive grant
amounts from the Secretary under section
410(a)(4);
‘‘(D) a State that elects under section
410(b)(1)(A) to administer a grant;
‘‘(E) a unit of general local government se-
lected under section 410(b)(5) to receive grant
amounts from the Secretary; and
‘‘(F) a private nonprofit organization se-
lected under section 410(b)(4) to receive grant
amounts from the Secretary.
‘‘(5) The term ‘families’ has the same meaning
given the term under section 3(b) of the United
States Housing Act of 1937.
‘‘(6) The term ‘grantee’ means—
‘‘(A) an allocation unit of general local
government, Indian Tribe, or insular area that
receives a grant under this subtitle and admin-
isters the grant under section 410(a)(1);
‘‘(B) an allocation unit of general local
government, Indian tribe, or insular area that
receives a grant under this subtitle and des-
ignates a public agency or private nonprofit or-
ganization (or a consortium of such organiza-
tions) to administer grant amounts for the ju-
risdiction under section 410(a)(2);
‘‘(C) a public agency or a private nonprofit
organization (or a consortium or such organiza-
tions) designated by the Secretary under section
410(a)(3) to administer grant amounts for an
allocation unit of general local government, In-
dian tribe, or insular area, and that receives
grant amounts under this subtitle;
‘‘(D) an entity that receives grant amounts
from the Secretary under section 410(a)(4);
‘‘(E) a State that receives grant amounts
under this subtitle and administers such
amounts under section 410(b)(1)(A);
‘‘(F) a unit of general local government
that receives grant amounts from the Secretary
under section 410(b)(5); and
‘‘(G) a private nonprofit organization that
receives grant amounts from the Secretary
under section 410(b)(4);
‘‘(7) The term ‘homeless family’ means a group
of one or more related individuals who are homeless
individuals.
‘‘(8) The term ‘Indian tribe’ means any Indian
tribe, band, group, and nation, including Alaska In-
dians, Aleuts, and Eskimos, and any Alaskan Native
Village, of the United States, which is considered an
eligible recipient under the Indian Self-Determina-
tion and Education Assistance Act or was considered
an eligible recipient under chapter 67 of title 31,
United States Code, before the repeal of such
chapter.
‘‘(9) The term ‘insular area’ means the Virgin
Islands, Guam, American Samoa, and the Common-
wealth of the Northern Mariana Islands.
‘‘(10) The term ‘low-demand services and refer-
rals’ means the provision of health care, mental
health, substance abuse, and other supportive serv-
ices and referrals for services in a noncoercive man-
ner, which may include medication management,
education, counseling, job training, and assistance in
obtaining entitlement benefits and in obtaining other
supportive service including mental health treatment
and substance abuse treatment.
‘‘(11) The term ‘metropolitan city’ has the
meaning given the term in section 102(a) of the
Housing and Community Development Act of 1974.
‘‘(12) The term ‘operating costs’ means ex-
penses of operating any housing assisted under this
subtitle with respect to—
‘‘(A) the administration, maintenance, re-
pair, and security of such housing;
‘‘(B) utilities, fuels, furnishings, and equip-
ment for such housing; and
‘‘(C) the conducting of the assessments of
and the provision of supportive services to the
residents of such housing.
‘‘(13) The term ‘outpatient health services’
means outpatient health care, outpatient mental
health services, outpatient substance abuse services,
case management services and child immunization.
‘‘(14) The term ‘private nonprofit organization’
means an organization—
‘‘(A) no part of the net earnings of which
inures to the benefit of any member, founder,
contributor, or individual;
‘‘(B) that has a voluntary board;
‘‘(C) that has an accounting system or has
designated a fiscal agent in accordance with re-
quirements established by the Secretary; and
‘‘(D) that practices nondiscrimination in
the provision of assistance.
‘‘(15) The term ‘project’ means a structure or
a portion of a structure that is acquired or rehabili-
tated with assistance provided under this subtitle or
with respect to which the Secretary provides tech-
nical assistance or annual payments for operation
costs.
‘‘(16) The term ‘project sponsor’ means an en-
tity that—
‘‘(A) provides housing or assistance for
homeless individuals or families by carrying out
‘‘(21)(A) The term ‘supportive services’ means
assistance that—
‘‘(i) addresses the special needs of home-
less person, such as deinstitutionalized persons,
families with children, persons with mental dis-
abilities, other persons with disabilities, the el-
derly, and veterans intended to be served by a
project; and
‘‘(ii) assists in accomplishing the purposes
of the different types of housing for the home-
less eligible for assistance under this subtitle.
‘‘(B) Such term includes—
‘‘(i) food services, child care, substance
abuse treatment, assistance in obtaining perma-
nent housing, outpatient health services, em-
ployment counseling, nutritional counseling, se-
curity arrangements for the protection of resi-
dents of facilities to assist the homeless, and
such other services essential for maintaining or
moving toward independent living as the Sec-
retary determines to be appropriate; and
‘‘(ii) assistance to homeless persons in ob-
taining other Federal, State, and local assist-
ance available for such individuals, including
public assistance benefits, mental health bene-
fits, employment counseling, and medical assist-
ance.
‘‘(C) Such term does not include the provision
of major medical equipment.
‘‘(D) All or part of the supportive services may
be provided directly by the project sponsor or by ar-
rangements with other public or private service pro-
viders.
‘‘(22) The term ‘unit of general local govern-
ment’ means—
‘‘(A) a city, town, township, county, parish,
village, or other general purpose political sub-
division of a State;
‘‘(B) the District of Columbia; and
‘‘(C) any agency or instrumentality thereof
that is established pursuant to legislation and
designated by the chief executive to act on be-
half of the jurisdiction with regard to provisions
of this subtitle.
The term includes a consortium of geographically
contiguous units of general local government if the
Secretary determines that the consortium—
‘‘(i) has sufficient authority and adminis-
trative capability to carry out the purposes of
this subtitle on behalf of its member jurisdic-
tions; and
‘‘(ii) will, according to a written certifi-
cation by the State (or State, if the consortium
includes jurisdictions in more than one State),
direct its activities to alleviation of problems of
homeless individuals or families within the
State or States.
‘‘(23) The term ‘urban county’ has the meaning
given the term in section 102(a) of the Housing and
Community Development Act of 1974.
‘‘(24) The term ‘very low-income families’ has
the same meaning given the term under section 104
of the Cranston-Gonzalez National Affordable Hous-
ing Act.
‘‘SEC. 404. PROVISION OF GRANTS.
‘‘(a) AUTHORITY
AND USE.—The Secretary may
make grants to eligible grantees in accordance with the
provisions of this subtitle. Grants under this subtitle may
be used only—
‘‘(1) to carry out activities under chapter 2 for
assisting homeless individuals and families that are
conducted to provide comprehensive homeless assist-
ance required under section 405; and
‘‘(2) for administrative expenses, to the extent
provided in section 436.
‘‘(b) GENERAL RULE FOR AWARD OF GRANTS.—Ex-
cept as provided in subsection (c), the Secretary shall
make grants using amounts appropriated under section
402 in the manner provided in this subtitle.
‘‘(c) INSUFFICIENT APPROPRIATIONS.—
‘‘(1) TRIGGER.—If the amounts appropriated
pursuant to section 402 for any fiscal year are less
than 50 percent of the amount authorized to be ap-
propriated under such section for the year, the Sec-
retary shall use such amounts to make grants under
the provisions of this title as in effect immediately
before the enactment of the Stewart B. McKinney
Homeless Assistance Amendments Act of 1994.
‘‘(2) GRANT
REQUIREMENTS.—The Secretary
shall establish requirements for grants made under
this subsection, as the Secretary considers appro-
priate, that are additional or alternative to the re-
quirements under the provisions of this title as in ef-
fect immediately before the enactment of the Stew-
art B. McKinney Homeless Assistance Amendments
Act of 1994.
‘‘(3) GRANT CRITERIA.—The criteria for award-
ing grants under this subsection shall include—
‘‘(A) the extent to which there is a need
for assistance for homeless individuals and fam-
ilies in the jurisdiction in which the grant will
be used;
‘‘(B) the extent to which the activities pro-
posed to be carried out with grant amounts will
further the provision of comprehensive homeless
assistance required under section 405(b)(1);
‘‘(C) the extent to which private nonprofit
organizations providing assistance to homeless
individuals and families in the jurisdiction have
been, and will be, included in planning for the
receipt of assistance under this subtitle, the de-
velopment of the application under section 408,
and the execution of the proposed activities;
and
‘‘(D) such other criteria as the Secretary
considers appropriate to further the purposes of
this subsection and this subtitle.
‘‘(4) SET ASIDE FOR INDIAN TRIBES AND INSU-
LAR
AREAS.—In making grants under this sub-
section, the Secretary may set aside such amounts
as the Secretary considers appropriate for grants for
Indian tribes and insular areas.
‘‘SEC. 405. COMPREHENSIVE HOMELESS ASSISTANCE.
‘‘(a) ESTABLISHMENT
AND MAINTENANCE.—Each
applicant shall, based on information provided in the cur-
rent comprehensive affordable housing strategy for the ap-
propriate jurisdiction under section 105 of the Cranston-
Gonzalez National Affordable Housing Act or such other
plan as the Secretary may prescribe, use assistance pro-
vided under this subtitle in a manner that ensures that
comprehensive homeless assistance is established and
maintained within the jurisdiction of the applicant.
‘‘(b) REQUIREMENTS.—For purposes of this subtitle,
comprehensive homeless assistance required under this
section shall include—
‘‘(1) providing a system of outreach and assess-
ment for—
‘‘(A) determining whether an individual or
family is homeless, needs assistance to avoid
being homeless, or needs other assistance; and
‘‘(B) ensuring that individuals and families
so identified receive appropriate housing and
supportive services;
‘‘(2) providing assistance to the extent nec-
essary to avoid eviction (or foreclosure) and termi-
nation of utility services of low- and very low-income
families to prevent such families from becoming
homeless;
‘‘(3) making emergency shelters with appro-
priate supportive services available to the extent nec-
essary to ensure that homeless individuals and fami-
lies for which such housing is appropriate receive
adequate shelter, including during any period in
which an assessment referred to in paragraph (1) is
performed for such an individual or family;
‘‘(4) making transitional housing with appro-
priate supportive services available to the extent nec-
essary to ensure that homeless individuals and fami-
lies for which such housing is appropriate are pre-
pared for increased responsibility and permanent
housing, or permanent supportive housing, after the
transition period;
‘‘(5) making permanent supportive housing,
available to the extent necessary to meet the long-
term housing needs of all homeless individuals and
families; and
‘‘(6) providing for coordination of assistance
provided under this subtitle and assistance provided
under other Federal, State, and local programs that
may be used to assist homeless individuals and fami-
lies, including—
‘‘(A) assistance under the programs for
public and Indian housing and section 8 rental
assistance under the United States Housing Act
of 1937 (including the program for section 8
assistance for moderate rehabilitation under
section 451 of this Act and the shelter plus care
program for such assistance under section 452
of this Act), the HOME Investment Partner-
ships Act, the community development block
grant program under title I of the Housing and
Community Development Act of 1974, the pro-
gram for supportive housing for the elderly
under section 202 of the Housing Act of 1959,
the program for supportive housing for persons
with disabilities under section 811 of the Cran-
ston-Gonzalez National Affordable Housing Act,
and the program for housing opportunities for
persons with AIDS under subtitle D of title
VIII of the Cranston-Gonzalez National Afford-
able Housing Act;
‘‘(B) programs administered by the Direc-
tor of the Federal Emergency Management
Agency;
‘‘(C) programs administered by the Sec-
retary of Labor, including programs for employ-
ment and training;
‘‘(D) programs administered by the Sec-
retary of Health and Human Services, including
programs for health care, mental health care,
social services, income support services, run-
away youth, and unfit transient facilities;
‘‘(E) programs administered by the Sec-
retary of Veterans Affairs that are designed to
assist homeless veterans;
‘‘(F) programs administered by the Sec-
retary of Education, including programs for
adult education and education for homeless
children and youth;
‘‘(G) programs administered by the Cor-
poration for National and Community Service,
including programs for national service; and
‘‘(H) such other assistance as the Sec-
retary shall prescribe upon consultation with
the Interagency Council on the Homeless.
‘‘SEC. 406. MATCHING REQUIREMENTS.
‘‘(a) IN GENERAL.—Except as provided in subsection
(c), each recipient shall supplement the amount of grants
provided under this subtitle to the recipient with an equal
amount of funds from non-Federal sources, which shall
include funds from project sponsors receiving assistance
from the recipient.
‘‘(b) SUPPLEMENTAL FUNDS.—Supplemental funds
may include (1) the value of any donated material or
building, the value of any lease on a building, (2) any sal-
ary paid to staff to carry out the program of a project
sponsor, (3) the value of the time and services contributed
by volunteers to carry out the program of project sponsor
at a rate determined by the Secretary, and (4) the pro-
ceeds from bond financing validly issued by a State or unit
of general local government, agency, or instrumentality
thereof, and repayable with revenues derived from a
project assisted under this subtitle, except that not more
than 25 percent of the contribution required may be de-
rived from the proceeds of such bond financings. 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 shall be con-
sidered supplemental funds under this section.
‘‘(c) STATES.—
‘‘(1) REQUIRED
SUPPLEMENTATION.—Except
as provided in paragraph (3), in the case of a State
administering 
grant 
amounts 
under 
section
410(b)(1)(A), in each fiscal year, the State shall
supplement the amount of grants provided under
this subtitle with an amount of funds from sources
other than this subtitle equal to the difference be-
tween the amount received under this subtitle and
$100,000.
‘‘(2) BENEFIT OF MATCH.—Each grantee that
is a State shall obtain any supplemental amounts re-
quired under paragraph (1) from State recipients re-
ceiving amounts under the grant in a manner so
that the benefit of the $100,000 subtrahend under
paragraph (1) is appropriately divided among State
recipients for which providing such supplemental
amounts would—
‘‘(A) create a significant hardship for the
recipient; or
‘‘(B) interfere with the overall purpose of
the homeless assistance program of the recipi-
ent.
‘‘(3) EXCEPTION.—If, in any fiscal year, a
State receives $100,000 or less in grant amounts
under this subtitle, paragraph (1) shall not apply to
the State for the fiscal year.
‘‘(d) CERTIFICATION.—Each recipient shall certify,
to the satisfaction of the Secretary, its compliance with
the provisions of this section, which shall describe the
sources and amounts of supplemental funds provided pur-
suant to this section.
‘‘SEC. 
407. 
RESPONSIBILITIES 
OF 
RECIPIENTS 
AND
PROJECT SPONSORS.
‘‘(a) USE OF ASSISTANCE THROUGH PRIVATE NON-
PROFIT
ORGANIZATIONS.—Each recipient shall make
available more than 50 percent of the grant amounts it
receives for any fiscal year to project sponsors that are
private nonprofit organizations to carry out eligible activi-
ties under chapter 2, except that the Secretary may waive
the applicability of this requirement if the recipient dem-
onstrates to the Secretary that the requirement interferes
with the ability of the recipient to provide assistance under
this subtitle because of a paucity of qualified private non-
profit organizations in the jurisdiction of the recipient.
‘‘(b) HOUSING QUALITY.—Each recipient shall en-
sure that housing assisted with grant amounts provided
under this subtitle is decent, safe, and sanitary and, when
appropriate, complies with all applicable State and local
housing codes, building codes, and licensing requirements
in the jurisdiction in which the housing is located.
‘‘(c) PREVENTION OF UNDUE BENEFIT.—The Sec-
retary may prescribe such terms and conditions as the
Secretary considers necessary to prevent project sponsors
from unduly benefiting from the sale or other disposition
of projects other than a sale or other disposition resulting
in the use of the project for the direct benefit of very low-
income families.
‘‘(d) CONFIDENTIALITY.—Each recipient shall de-
velop and implement procedures to ensure the confiden-
tiality of records pertaining to any individual provided
family violence prevention or treatment services under any
project and to ensure that the address or location of any
family violence shelter project assisted with grant amounts
under this subtitle will, except with written authorization
of the person or person responsible for the operation of
such shelter, not be made public.
‘‘(e) EMPLOYMENT OF HOMELESS INDIVIDUALS.—
To the maximum extent practicable, the Secretary shall
ensure that recipients involve, through employment, volun-
teer services, or otherwise, homeless individuals and fami-
lies in constructing, renovating, maintaining, and operat-
ing facilities assisted with grant amounts under this sub-
title, in providing services so assisted, and in providing
services for occupants of facilities so assisted.
‘‘(f) PARTICIPATION OF HOMELESS INDIVIDUALS.—
The Secretary shall, by regulation, provide that each recip-
ient shall require each project sponsor receiving assistance
under this subtitle from the recipient to provide for the
participation of not less than one homeless individual or
formerly homeless individual on the board of directors or
other equivalent policy making entity of the project spon-
sor, to the extent that such entity considers and makes
policies and decisions regarding any project, facility, serv-
ices, or other activities assisted with grant amounts under
this subtitle. A recipient may grant waivers to project
sponsors unable to meet the requirement under the pre-
ceding sentence if the project sponsor agrees to otherwise
consult with homeless or formerly homeless individuals in
considering and making such policies and decisions.
‘‘SEC. 408. APPLICATION.
‘‘(a) REQUIREMENT.—Except as otherwise provided
in section 404(c), the Secretary may make a grant under
this subtitle only to an eligible grantee that submits an
application under this section that is approved by the
Secretary.
‘‘(b) FORM AND PROCEDURE.—Applications shall be
submitted in such form and in accordance with such proce-
dures as the Secretary shall, by regulation, establish.
‘‘(c) CONTENT.—An application under this section
shall—
‘‘(1) include a detailed description, based on in-
formation provided in the current comprehensive
housing affordability strategy under section 105 of
the Cranston-Gonzalez National Affordable Housing
Act for the appropriate jurisdiction or such other
plan as the Secretary may prescribe, of—
‘‘(A) the existing population of homeless
individuals and families for the jurisdiction of
the applicant; and
‘‘(B) the existing facilities and services de-
signed to assist such population;
‘‘(2) include a detailed description of the com-
prehensive homeless assistance under section 405 to
be established and maintained within the jurisdiction
of the applicant;
‘‘(3) provide an assessment of what is required
to establish and maintain the provision of com-
prehensive homeless assistance required under sec-
tion 405 for the jurisdiction of the applicant;
‘‘(4) set forth a multiyear strategy for estab-
lishing and maintaining the provision of comprehen-
sive homeless assistance for the jurisdiction, as de-
scribed pursuant to paragraph (2), and include time-
tables, goals, and budget estimates for accomplishing
each element of the strategy;
‘‘(5) set forth a 1-year action plan that identi-
fies all activities to be carried out with assistance
under this subtitle and demonstrates how such ac-
tivities will further the strategy set forth pursuant to
paragraph (4);
‘‘(6) except in the case of an application by a
State that elects under section 410(b)(1)(A) to ad-
minister grants under this subtitle, describe the
means the applicant will use to distribute grant
amounts to project sponsors and whether such
amounts will be awarded on a competitive or non-
competitive basis;
‘‘(7) contain certifications or other such forms
of proof of commitments of financial and other re-
sources from each public agency or private nonprofit
organization that has a role in establishing and
maintaining the provision of comprehensive homeless
assistance for the jurisdiction of the applicant, re-
quired under section 405;
‘‘(8) contain assurances satisfactory to the Sec-
retary that activities carried out under chapter 2
with grant amounts under this subtitle will comply
with the requirements of this subtitle;
‘‘(9) in the case of an application by a State
that elects to under section 410(b)(1)(A) administer
grants under this subtitle, describe the method of
distribution of such amounts to State recipients;
‘‘(10) except with respect to an application by
a State that elects to under section 410(b)(1)(A) to
administer grants under this subtitle, contain a cer-
tification from the public official responsible for sub-
mitting the comprehensive housing affordability
strategy under section 105 of the Cranston-Gonzalez
National Affordable Housing Act for the State or
unit of general local government within which a
project is to be located (or such other plan as the
Secretary may require) that the proposed project is
consistent with the approved housing strategy of
such State or unit of general local government;
‘‘(11) contain a certification that the applicant
will comply with the requirements of the Fair Hous-
ing Act, title VI of the Civil Rights Act of 1964, sec-
tion 504 of the Rehabilitation Act of 1973, and the
Age Discrimination Act of 1975, and will affirma-
tively further fair housing; and
‘‘(12) contain a certification that the applicant
will comply with the requirements of this subtitle
and other applicable laws.
‘‘(d) RELATIONSHIP TO CHAS AND CONSOLIDATED
PLAN.—In establishing requirements for applications
under this section, the Secretary shall provide that if an
applicant includes in the application information also re-
quired under the comprehensive housing affordability
strategy for the appropriate jurisdiction under section 105
of the Cranston-Gonzalez National Affordable Housing
Act or such other plan as the Secretary may require, the
requirements under such subsection regarding such infor-
mation shall be considered to be fulfilled by the submission
of the application.
‘‘SEC. 409. ALLOCATION AND DISTRIBUTION OF FUNDS.
‘‘(a) INSULAR AREAS.—In each fiscal year, from any
amounts appropriated for such year to carry out this sub-
title, the Secretary shall allocate amounts to insular areas
in accordance with an allocation formula established by
the Secretary.
‘‘(b) STATES AND ALLOCATION UNITS OF GENERAL
LOCAL GOVERNMENT.—
‘‘(1) FORMULA ALLOCATION.—
‘‘(A) IN GENERAL.—For each fiscal year,
of the amounts that remain after amounts are
reserved for insular areas under subsection (a),
the Secretary shall allocate assistance according
to this paragraph.
‘‘(B) FORMULA.—The Secretary shall allo-
cate amounts under this paragraph using a for-
mula established by the Secretary that allocates
amounts for allocation units of general local
government and States, and for Indian tribes,
in a manner that provides that the percentage
of the total amount referred to in subparagraph
general local government on a pro rata basis so
that the sum of such amounts is equal to 70
percent of the remainder of the amount appro-
priated for the year to carry out this subtitle
after amounts are allocated for insular areas
under subsection (a).
‘‘(E) 30 PERCENT FOR STATES.—In each
fiscal year, the amount allocated under this
paragraph for each State shall be the amount
that results from decreasing all of the amounts
determined pursuant to the preceding subpara-
graphs for States on a pro rata basis so that
the sum of such amounts is equal to 30 percent
of the remainder of the amount appropriated
for the year to carry out this subtitle after
amounts are allocated for insular areas under
subsection (a).
‘‘(2) GRANT AMOUNT FOR STATES AND ALLO-
CATION UNITS OF GENERAL LOCAL GOVERNMENT.—
‘‘(A) IN GENERAL.—The amount allocated
for a fiscal year under paragraph (1) for an al-
location unit of general local government or a
State shall be the maximum amount that the
allocation unit or State may receive under this
subtitle for the fiscal year.
‘‘(B) REDUCTION.—In any fiscal year, the
Secretary may provide a grant under this sub-
title for a State or for an allocation unit of gen-
eral local government in an amount less than
the amount allocated under paragraph (1), if
the Secretary determines based upon review of
the application of the jurisdiction under section
408 or as a result of the annual performance
review and audit under section 413, that the ju-
risdiction has failed to comply fully with the re-
quirements under section 408 or 411 or that
such action is otherwise appropriate.
‘‘(c) REALLOCATIONS.—Any amounts that a State or
an allocation unit of general local government is eligible
to receive for a fiscal year under subsection (b) that are
not received for use in the jurisdiction, as provided by sub-
sections (a) and (b) of section 410, or that become avail-
able as a result of actions under section 413(b), shall be
added to amounts available for allocation under this sec-
tion for the succeeding fiscal year.
‘‘SEC. 410. ADMINISTRATION OF PROGRAM.
‘‘(a) GRANTS TO ALLOCATION UNITS OF GENERAL
LOCAL GOVERNMENT, INDIAN TRIBES, AND INSULAR
AREAS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graphs (2), (3), and (4), an allocation unit of gen-
eral local government, Indian tribe, or insular area
shall administer grant amounts for any fiscal year
received under section 409 by such grantees.
‘‘(2) ADMINISTRATION BY DESIGNEES OF JU-
RISDICTION.—
‘‘(A) AUTHORITY TO ELECT.—An alloca-
tion unit of general local government, Indian
tribe, or insular area may elect for any fiscal
year to designate a public agency or a private
nonprofit organization (or a consortium of such
organizations) to administer grant amounts
under section 409 for the jurisdiction.
‘‘(B) 
ELECTION
REQUIREMENTS.—The
Secretary shall prescribe the manner and time
for making an election under subparagraph (A),
and shall establish criteria for the approval of
agencies and organizations designated, which
shall require such agencies and organizations to
demonstrate experience of the entity in provid-
ing assistance to homeless individuals and fami-
lies in the jurisdiction.
‘‘(C) 
DIRECT
PROVISION
OF
ASSIST-
ANCE.—The Secretary may, at the request of
the jurisdiction, provide grant amounts directly
to the agency or organization designated under
this paragraph.
‘‘(3) ADMINISTRATION BY DESIGNEES OF SEC-
RETARY.—If an allocation unit of general local gov-
ernment, Indian tribe, or insular area, or (if appro-
priate) a public agency or private nonprofit organi-
zation designated by the jurisdiction under para-
graph (2), does not receive a grant under section
409 for any fiscal year because of failure to meet the
application requirements of section 408, the Sec-
retary may designate an agency or organization
meeting the criteria established under paragraph
(2)(B) to receive the grant.
‘‘(4) ADMINISTRATION BY SECRETARY.—If for
any fiscal year the Secretary determines that the
grant amounts allocated under section 409 for an al-
location unit of general local government, Indian
tribe, or insular area will not be used in the jurisdic-
tion as provided by the preceding provisions of this
subsection, the Secretary may administer such
amounts for the jurisdiction. The Secretary shall
prescribe such procedures and requirements as the
Secretary considers appropriate for administering
grant amounts under this paragraph.
‘‘(b) GRANTS TO STATES.—
‘‘(1) IN
GENERAL.—To receive an allocation
under section 409, each State shall elect—
‘‘(A) to administer grant amounts received
under section 409, as provided in paragraphs
(2) and (3); or
‘‘(B) to have the Secretary administer such
grant amounts for the State, as provided in
paragraph (5).
If a State elects to administer grant amounts under
subparagraph (A), the election shall be irrevocable.
‘‘(2) STATE PROGRAM.—A State administering
grant amounts as provided in paragraph (1)(A)—
‘‘(A) shall distribute the amounts remain-
ing after use in accordance with subparagraph
(B) to State recipients for use under this sub-
title;
‘‘(B) may use up to 15 percent of the
grant amounts received under section 409 to
carry out its own homeless assistance program
under this subtitle, except that—
‘‘(i) such amounts may only be used
for eligible activities under chapter 2 for
which States are eligible recipients under
this subtitle; and
‘‘(ii) the Secretary may increase the
percentage limitation under this subpara-
graph in the case of any State homeless
assistance program that is limited to pro-
viding assistance in areas of the State that
are not allocation units of general local
government; and
‘‘(C) may retain not to exceed 5.0 percent
of the amount to be distributed under subpara-
graph (A) to State recipients to defray the cost
of carrying out its responsibilities under this
subtitle.
Unless a State demonstrates to the satisfaction of
the Secretary that the needs for assistance for ac-
tivities under this subtitle in areas of the State that
are not allocation units of general local government
have been fulfilled, grant amounts received by State
may only be used to carry out activities in areas of
the State that do not include allocation units of gen-
eral local government.
‘‘(3) DISTRIBUTION OF AMOUNTS TO STATE RE-
CIPIENTS.—
‘‘(A) CHOICE
OF
ADMINISTRATION.—A
State administering grant amounts as provided
in paragraph (1)(A) shall, for each fiscal year,
afford each such recipient the options of—
‘‘(i) administering the grant amounts
on its own behalf;
‘‘(ii) designating a public agency or a
private nonprofit organization (as provided
by subsection (a)(2)) to administer the
grant amounts for the jurisdiction; or
‘‘(iii) entering into an agreement with
the State, in consultation with private non-
profit organizations providing assistance to
homeless individuals and families in the ju-
risdiction, under which the State will ad-
minister the grant amounts for the juris-
diction.
A recipient may choose to exercise such options
at such time and in accordance with such cri-
teria as the Secretary may prescribe.
‘‘(B) 
DIRECT
PROVISION
OF
ASSIST-
ANCE.—A State may, at the request of the
State recipient, provide grant amounts directly
to the agency or organization designated under
subparagraph (A)(ii).
‘‘(C) DISTRIBUTION
OF
AMOUNTS.—The
State shall distribute amounts to State recipi-
ents (or to agencies or organizations designated
under subparagraph (A)(ii), as appropriate) on
the basis of an application containing such in-
formation as the State may prescribe. Each ap-
plication shall evidence an intent to establish
and maintain the provision of comprehensive
homeless assistance in the jurisdiction of the re-
cipient, except that the State may waive this re-
quirement with respect to one or more proposed
activities, where the State determines that—
‘‘(i) the activities are necessary to
meet the needs of homeless individuals and
families within the jurisdiction; and
‘‘(ii) comprehensive homeless assist-
ance is not necessary, due to the nature
and extent of homelessness in the jurisdic-
tion.
‘‘(D) PREFERENCE
FOR
CERTAIN
STATE
RECIPIENTS.—In selecting State recipients and
making awards under subparagraph (C), the
State shall give preference to applications that
demonstrate higher relative levels of homeless
need and fiscal distress.
‘‘(4) STATE
OR
HUD
ADMINISTRATION
OF
GRANTS FOR INDIVIDUAL STATE RECIPIENTS.—If in
any fiscal year a State distributes grant amounts to
a State recipient, but the recipient fails to receive
the amounts pursuant to paragraph (3)(A), the Sec-
retary or the State, as the Secretary may provide,
may distribute the amounts to private nonprofit or-
ganizations in the jurisdiction. If the Secretary dis-
tributes the amounts, the Secretary shall deduct the
amounts distributed from the grant provided to the
State for the fiscal year.
‘‘(5) HUD ADMINISTRATION
OF
STATE
PRO-
GRAM.—If a State elects pursuant to paragraph
(1)(B) to have the Secretary administer grant
amounts for the State received under section 409,
the Secretary may distribute grant amounts to State
recipients for the State, in accordance with require-
ments and procedures prescribed by the Secretary.
The Secretary shall establish criteria for selecting
recipients and making awards under this paragraph,
which shall include giving preference to applications
that demonstrate higher relative levels of homeless
need and fiscal distress.
‘‘SEC. 411. CITIZEN PARTICIPATION.
‘‘(a) IN GENERAL.—Each grantee who is not a State
recipient shall ensure that citizens, and appropriate pri-
vate nonprofit organizations and other interested groups
and entities, participate fully in developing and carrying
out the program for providing assistance under this sub-
title in the jurisdiction of the recipient. The Secretary
shall prescribe such requirements to carry out this section
as the Secretary deems appropriate, which shall include
requirements applicable to the homeless assistance plan-
ning boards referred to in subsection (b) and the citizen
participation provisions of subsection (c), and the timing
of, and sequence for, carrying out the requirements of
such subsections.
‘‘(b) HOMELESS ASSISTANCE PLANNING BOARDS.—
‘‘(1) ESTABLISHMENT.—As a condition of a
grantee who is not a State recipient receiving assist-
ance under this subtitle, the chief executive officer of
the appropriate unit government in the jurisdiction
of the grantee shall establish a homeless assistance
planning board under this subsection.
‘‘(2) FUNCTIONS.—Each board under this sub-
section shall assist the recipient in—
‘‘(A) determining whether grant amounts
of the grantee should be administered by the
grantee, a public agency or private nonprofit or-
ganization, or the State or the Secretary, under
subsections (a) and (b) of section 410;
(B) developing the application under sec-
tion 408;
(C) overseeing the activities carried out
with assistance under this subtitle; and
(D) evaluating the performance of the
grantee (and recipients of the grantee) in carry-
ing out such activities.
‘‘(3) MEMBERSHIP.—Each board under this
subsection shall consist of members appointed by the
chief executive officer referred to in paragraph (1)
(subject to recommendations in accordance with
paragraph (4)), and shall include—
‘‘(A) not less than one member represent-
ing homeless individuals and families;
‘‘(B) not less than one member represent-
ing homeless advocates;
‘‘(C) not less than one member represent-
ing individuals and entities providing assistance
to homeless individuals and families, including
agencies of units of general local government
providing Federal assistance;
‘‘(D) not less than one member represent-
ing the business community;
‘‘(E) not less than 1 member representing
labor;
‘‘(F) not less than one member who is a
community representative;
‘‘(G) not less than one member of the local
board established for the jurisdiction for pur-
poses of allocating amounts under the emer-
gency food and shelter program of the Federal
Emergency Management Agency;
‘‘(H) not less than one member represent-
ing the grantee; and
‘‘(I) in the case of a grantee that is a
State—
‘‘(i) one member representing the
State agency or instrumentality dealing
with mental health; and
‘‘(ii) one member representing the
State agency or instrumentality dealing
with education.
‘‘(4) DISTRIBUTION OF MEMBERSHIP.—Not less
than 50 percent of the members of each board under
this subsection (including the members required
under subparagraphs (A), (B), (C), and (G) of para-
graph (3)) shall be individuals who were rec-
ommended for membership by individuals and enti-
ties other than a unit of general local government or
any agency thereof.
‘‘(5) BOARD REVIEW.—
‘‘(A) APPLICANTS.—No eligible grantee
may submit an application to the Secretary
under section 408, and no grantee may submit
to the Secretary a performance report under
subsection 413(a), unless the board under this
subsection for the jurisdiction of the grantee
has reviewed, and been provided an opportunity
to include any comments of the board in, the
application or report.
‘‘(B) STATE RECIPIENTS.—No State recip-
ient may submit an application under section
410(b)(3) or a performance report to a State,
unless the board under this subsection for the
jurisdiction has reviewed, and been provided an
opportunity to include any comments of the
board in, the application or report.
‘‘(6) REVIEW BY SECRETARY.—A member or
members of the board under this subsection for a ju-
risdiction or other members of the community may
request the Secretary to review process for constitut-
ing or operating the board to determine whether the
process is fair. If the Secretary finds that the proc-
ess is unfair and submits a written justification to
the board within 15 days of the request for review,
the Secretary may disapprove the application under
section 408 for the jurisdiction or refuse to accept
a performance report under section 413(a).
‘‘(7) CONFLICTS OF INTEREST.—The Secretary
shall prescribe standards governing potential con-
flicts of interest under which members of boards
under this subsection may participate in activities
carried out under this subtitle.
‘‘(c) INVOLVEMENT OF CITIZENS AND OTHERS.—
‘‘(1) IN GENERAL.—Each recipient shall—
‘‘(A) make available to its citizens, public
agencies, and other interested parties informa-
tion concerning the amount of assistance the ju-
risdiction 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
comments on it;
‘‘(C) hold one or more public 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 recipient may have received under this sub-
title during the preceding 5 years.
‘‘(2) NOTICE AND COMMENT.—Before submit-
ting any performance report under section 413(a) or
any substantial amendment to an application under
section 408, a recipient shall provide citizens with
reasonable notice of, and opportunity to comment
on, the performance report or application.
‘‘(3) CONSIDERATION OF COMMENTS.—A recipi-
ent shall consider any comments or views of citizens
in preparing a final application, amendment to an
application, or performance report for submission. A
summary of such comments or views shall be at-
tached when an application, amendment to an appli-
cation, or performance report is submitted. The sub-
mitted application, amendment, or report shall be
made available to the public.
‘‘(4) AUTHORITY
OF
SECRETARY.—The Sec-
retary shall establish procedures appropriate and
practicable for providing a fair hearing and timely
not apply with respect to the actions of the Sec-
retary referred to in paragraph (2). The Secretary
shall establish appropriate standards under this
paragraph to ensure the integrity of the process for
awarding assistance.
‘‘SEC. 412. APPLICABILITY OF OTHER PROVISIONS.
‘‘(a) FLOOD ELEVATION REQUIREMENTS.—Flood
protection standards applicable to housing acquired, reha-
bilitated, or assisted under this subtitle shall be no more
restrictive than the standards applicable to any other pro-
gram administrated by the Secretary.
‘‘(b) ENVIRONMENTAL
PROTECTION.—The provi-
sions of, and regulations and procedures applicable under,
section 104(g) of the Housing and Community Develop-
ment Act of 1974 shall apply to assistance and projects
under this subtitle.
‘‘(c) GAO AUDITS.—Insofar as they relate to funds
provided under this subtitle, the financial transactions of
grantees and project sponsors may be audited by the Gen-
eral Accounting Office under such rules and regulations
as may be prescribed by the Comptroller General of the
United States. The representatives of the General Ac-
counting Office shall have access to all books, accounts,
records, reports, files and other papers, things, or property
belonging to, or in use by such grantees, and project spon-
sors pertaining to the financial transactions and necessary
to facilitate the audit.
‘‘SEC. 413. REPORTS, REVIEWS, AND AUDITS.
‘‘(a) 
GRANTEE
PERFORMANCE
REPORT.—Each
grantee shall submit to the Secretary a performance and
evaluation report concerning the use of funds made avail-
able under this subtitle. The report shall be submitted at
such time and contain such information as the Secretary
shall prescribe, and shall be made available to the relevant
boards referred to in section 411(b) and to citizens, public
agencies, and other interested parties in the jurisdiction
of the grantee in sufficient time to permit the board and
the citizens, public agencies, and other interested parties
to comment on the report before submission.
‘‘(b) REVIEWS AND AUDITS.—The Secretary shall, at
least on an annual basis, make such reviews and audits
as may be necessary or appropriate to determine—
‘‘(1) in the case of a grantee (other than a
grantee referred to in paragraph (2)), whether the
grantee—
‘‘(A) has carried out its activities in a
timely manner;
‘‘(B) has made progress toward establish-
ing and maintaining the comprehensive home-
just, reduce, or withdraw such assistance, or take other
action as appropriate in accordance with the Secretary’s
reviews and audits under this subsection, except that
amounts already properly expended on eligible activities
under this subtitle shall not be recaptured or deducted
from future assistance to such recipients.
‘‘SEC. 414. NONDISCRIMINATION IN PROGRAMS AND AC-
TIVITIES.
‘‘(a) IN GENERAL.—No person in the United States
shall on the ground 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 Discrimi-
nation Act of 1975 or with respect to an otherwise quali-
fied handicapped individual, as provided in section 504 of
the Rehabilitation Act of 1973, shall also apply to any
such program or activity.
‘‘(b) LIMITATIONS.—
‘‘(1) INDIAN TRIBES.—No grant may be made
under this subtitle to an Indian tribe unless the ap-
plicant provides satisfactory assurances that its pro-
gram will be conducted and administered in con-
formity with title II of Public Law 90–284. The Sec-
retary may waive, in connection with grants to In-
dian tribes, the provisions of subsection (a).
‘‘(2) HAWAIIAN HOME LANDS.—The provisions
of this subtitle relating to discrimination on the
basis of race shall not apply to the provision of as-
sistance under this subtitle to the Hawaiian Home
Lands.
‘‘SEC. 415. CONSULTATION.
In carrying out the provisions of this subtitle, includ-
ing the issuance of regulations, the Secretary shall consult
with other Federal agencies administering programs af-
fecting homeless individuals and families through the
Interagency Council on the Homeless established under
title II.
‘‘SEC. 416. RECORDS, REPORTS, AND AUDITS.
‘‘(a) KEEPING OF RECORDS.—Any recipient (includ-
ing a State distributing grant amounts to State recipients
as provided in section 410(b)(2)) shall keep such records
as may be reasonably necessary—
‘‘(1) to disclose the amounts and the disposition
of the grant amounts; and
‘‘(2) to ensure compliance with the require-
ments of this subtitle.
‘‘(b) ACCESS TO DOCUMENTS BY SECRETARY.—The
Secretary shall have access for the purpose of audit and
examination to any books, documents, papers, and records
of any recipient specified in subsection (a) that are perti-
nent to grant amounts received in connection with, and
the requirements of, this subtitle.
‘‘(c) ACCESS
TO DOCUMENTS
BY COMPTROLLER
GENERAL.—The Comptroller General of the United
States, or any of the duly authorized representatives of
the Comptroller General, shall have access for the purpose
of audit and examination to any books, documents, papers,
and records of any recipient specified in subsection (a)
that are pertinent to grant amounts received in connection
with, and the requirements of, this subtitle.
‘‘SEC. 417. REPORTS TO CONGRESS.
‘‘The Secretary shall submit a report to the Congress
annually, summarizing the activities carried out under this
subtitle and setting forth the findings, conclusions, and
recommendations of the Secretary as a result of the activi-
ties. The report shall be submitted not later than 4
months after the end of each fiscal year (except that, in
the case of fiscal year 1995, the report shall be submitted
not later than 6 months after the end of the fiscal year).
‘‘CHAPTER 2—ELIGIBLE ACTIVITIES
‘‘SEC. 431. HOMELESSNESS PREVENTION.
‘‘(a) ELIGIBLE ACTIVITIES.—A recipient may use
grant amounts under this subtitle for activities designed
to help persons and families described in subsection (b)
avoid becoming homeless, which shall include assistance
for making mortgage payments, rental payments, and util-
ity payments and any activities other than those found by
the Secretary to be inconsistent with the purposes of this
Act.
‘‘(b) REQUIREMENTS FOR ASSISTANCE.—Assistance
may be provided under this section only to very low-income
persons and families who have received eviction (or mort-
gage delinquency or foreclosure) notices or notices of ter-
mination of utility services and who—
‘‘(1) are unable to make the required payments
due to a sudden reduction in income;
‘‘(2) need such assistance to avoid the eviction
or termination of services; and
‘‘(3) have a reasonable prospect of being able to
resume payments within a reasonable period of time.
‘‘SEC. 432. EMERGENCY SHELTER.
‘‘(a) ELIGIBLE ACTIVITIES.—A recipient may use
grant amounts under this subtitle for—
‘‘(1) the renovation, major rehabilitation, or
conversion of a building or buildings to be used as
emergency shelters;
‘‘(2) the provision of supportive services, 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 commencement of
the operation of the emergency shelter; and
‘‘(3) maintenance, operation, insurance, utili-
ties, and furnishings for emergency shelters.
‘‘(b) DEFINITION.—A project shall be considered
emergency shelter for purposes of this section if the
project is designed to provide overnight sleeping accom-
modations for homeless persons. An emergency shelter
may include appropriate eating and cooking accommoda-
tions.
‘‘(c) PROGRAM REQUIREMENTS.—A recipient may
use grant amounts under this subtitle for an emergency
shelter project only if the project sponsor has agreed that
it will—
‘‘(1) in the case of assistance involving major
rehabilitation or conversion of a building, maintain
the building as a shelter for homeless individuals
and families for not less than a 10-year period un-
less, within such 10-year period, the need for main-
taining 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;
‘‘(2) in the case of assistance involving rehabili-
tation (other than major rehabilitation or conversion
of a building), maintain the building as a shelter for
homeless individuals and families for not less than
a 3-year period; or
‘‘(3) in the case of assistance involving only ac-
tivities described in paragraphs (2) and (3) of sub-
section (a), provide services or shelter to homeless
individuals and families at the original site or struc-
ture or other sites or structures serving the same
general population for the period during which such
assistance is provided;
‘‘(4) comply with the standards of habitability
prescribed under subsection (d) by the Secretary and
(if applicable) the State or unit of general local gov-
ernment; and
‘‘(5) assist homeless persons in obtaining—
‘‘(A) appropriate supportive service, includ-
ing permanent housing, medical and mental
health treatment, counseling, supervision, and
other services essential for achieving independ-
ent living; and
‘‘(B) other Federal, State, local, and pri-
vate assistance available for homeless persons.
‘‘(d) MINIMUM STANDARDS OF HABITABILITY.—The
Secretary shall prescribe such minimum standards of hab-
itability as the Secretary determines to be appropriate to
ensure that emergency shelters assisted under this section
are environments that provide appropriate privacy, safety,
and sanitary and other health-related conditions for home-
less persons and families. Grantees may establish stand-
ards of habitability in addition to those prescribed by the
Secretary.
‘‘SEC. 433. SUPPORTIVE HOUSING FOR THE HOMELESS.
‘‘(a) ELIGIBLE ACTIVITIES.—A recipient may use
grant amounts under this subtitle to provide assistance to
a project sponsor of supportive housing in the following
manners:
‘‘(1) ACQUISITION AND REHABILITATION.—As-
sistance may be provided in the form of an advance
in an amount not exceeding cost of acquisition, sub-
stantial rehabilitation, or acquisition and rehabilita-
tion of an existing structure for use as supportive
housing. The repayment of any outstanding debt
owed on a loan made to purchase an existing struc-
ture shall be considered to be a cost of acquisition
eligible for an advance under this paragraph if the
structure was not used as supportive housing before
the receipt of assistance.
‘‘(2) MODERATE REHABILITATION.—Assistance
may be provided in the form of a grant for moderate
rehabilitation of an existing structure for use as sup-
portive housing. Assistance under this paragraph
shall not preclude assistance under paragraph (1).
‘‘(3) OPERATING
COSTS.—Assistance may be
provided in the form of annual payments for operat-
ing costs of supportive housing (including supportive
housing that is newly constructed with assistance
provided from sources other than this subtitle) in an
amount not exceeding 75 percent of the annual oper-
ating costs of such housing.
‘‘(4) TECHNICAL
ASSISTANCE.—Technical as-
sistance may be provided in—
‘‘(A) establishing supportive housing in an
existing structure;
‘‘(B) operating supportive housing in exist-
ing structures and in structures that are newly
constructed with assistance provided from
sources other than this subtitle; and
‘‘(C) providing supportive services to the
residents of supportive housing (including sup-
portive housing that is newly constructed with
assistance provided from sources other than
this subtitle).
‘‘(5) EMPLOYMENT
ASSISTANCE
PROGRAM.—
Assistance may be provided in the form of a grant
for establishing and operating an employment assist-
ance program for the residents of supportive hous-
ing, which shall include—
‘‘(A) employment of residents in the oper-
ation and maintenance of the housing; and
‘‘(B) the payment of the transportation
costs of residents to places of employment.
‘‘(6) SUPPORTIVE SERVICES.—Assistance may
be provided in the form of a grant for costs of sup-
portive services provided to homeless individuals.
Any project sponsor, including program recipients
under title IV of this Act before the date of the en-
actment of the Stewart B. McKinney Homeless As-
sistance Amendments Act of 1994, may reapply for
such assistance or for the renewal of such assistance
to continue services funded under prior grants or to
provide other services.
‘‘(7) CHILD CARE SERVICES.—Assistance may
be provided in the form of a grant to establish and
operate a child care services program for homeless
families, which shall—
‘‘(A) include—
‘‘(i) establishing, licensing, and oper-
ating an on-site child care facility for the
residents of transitional housing;
‘‘(ii) making contributions for the
child care costs of residents of transitional
housing to existing community child care
programs and facilities; and
‘‘(iii) counseling designed to inform
the residents of transitional housing of
public and private child care services for
which they are eligible; and
‘‘(B) provide only child care services that
comply with any applicable State and local laws
and regulations.
A grant under this paragraph for any child care
services program may not exceed the amount equal
to 75 percent of the cost of operating the program
for a period not exceeding 5 years.
‘‘(b) SUPPORTIVE HOUSING.—Housing for homeless
individuals shall be considered to be supportive housing
for purposes of this section if—
‘‘(1) the housing is safe and sanitary and meets
any applicable State and local housing codes and li-
censing requirements in the jurisdiction in which the
housing is located;
‘‘(2) the housing is—
‘‘(A) transitional housing;
‘‘(B) permanent housing for homeless per-
sons with disabilities; or
‘‘(C) a particularly innovative project for,
or alternative methods of, meeting the imme-
diate and long-term needs of homeless individ-
uals and families (or is part of such a project);
and
‘‘(3) supportive services are provided in connec-
tion with the housing to address the special needs of
homeless individuals intended to be served by the
housing.
‘‘(c) TRANSITIONAL HOUSING.—For purposes of this
section, the term ‘transitional housing’ means housing, the
purpose of which is to facilitate the movement of homeless
individuals and families to permanent housing within 24
months or such longer period as the Secretary determines
necessary.
‘‘(d) PERMANENT HOUSING FOR HOMELESS PER-
SONS WITH DISABILITIES.—For purposes of this section,
the term ‘permanent housing for homeless persons with
disabilities’ means community-based housing for homeless
persons with disabilities that—
‘‘(1) is a home designed solely for housing
homeless persons with disabilities or dwelling units
in a multifamily housing project, condominium
project, or cooperative project;
‘‘(2) in the case of a home, is located on a site
that does not contain another home used for the
same purposes and that is not contiguous to another
site containing a home used for the same purposes;
and
‘‘(3) provides long-term housing and supportive
services for not more than—
‘‘(A) 8 such persons in a single structure
or contiguous structures;
‘‘(B) 16 such persons, but only if not more
than 20 percent of the units in a structure are
designated for such persons; or
‘‘(C) more than 16 persons if the applicant
demonstrates that local market conditions dic-
tate the development of a large project and
such development will achieve the neighborhood
integration objectives of the program within the
context of the affected community.
‘‘(e) PROGRAM REQUIREMENTS.—
‘‘(1) REQUIRED
AGREEMENTS.—A recipient
may use grant amounts under this subtitle for a
supportive housing project under this section only if
the project sponsor for the project has agreed—
‘‘(A) to operate the proposed project as
supportive housing for not less than 10 years;
‘‘(B) to conduct an ongoing assessment of
the supportive services required by the residents
of the project;
‘‘(C) to provide such residential supervision
as the Secretary determines is necessary to fa-
cilitate the adequate provision of supportive
services to the residents of the project; and
‘‘(D) to comply with such other terms and
conditions as the Secretary or recipient may es-
tablish for purposes of carrying out this pro-
gram in an effective and efficient manner.
‘‘(2) OCCUPANT CHARGE.—Each homeless indi-
vidual or family residing in a project assisted under
this section that provides supportive housing may be
required to pay an occupancy charge in an amount
determined by the project sponsor, which may not
exceed the amount determined under section 3(a) of
the United States Housing Act of 1937. Occupancy
charges paid may be reserved, in whole or in part,
to assist residents in moving to permanent housing.
‘‘(f) SINGLE ROOM OCCUPANCY DWELLINGS.—A
project assisted under this section may provide supportive
housing or supportive services in dwelling units that do
not contain bathrooms or kitchen facilities and are appro-
priate for use as supportive housing or in projects contain-
ing some or all such dwelling units.
‘‘SEC. 434. SAFE HAVENS FOR HOMELESS INDIVIDUALS.
‘‘(a) ELIGIBLE ACTIVITIES.—A recipient may use
grant amounts under this subtitle for—
‘‘(1) the construction of a structure for use in
providing a safe haven or the acquisition, rehabilita-
tion, or acquisition and rehabilitation of an existing
structure for use in providing a safe haven;
‘‘(2) the leasing of an existing structure for use
in providing a safe haven;
‘‘(3) operating costs of a safe haven;
‘‘(4) costs of administering a safe haven pro-
gram, in an amount not exceeding 10 percent of the
amounts made available for activities under para-
graphs (1) through (3);
‘‘(5) conducting outreach activities designed to
inform eligible persons about and attract them to a
safe haven program;
‘‘(6) the provision of low-demand services and
referrals for residents of a safe haven; and
‘‘(7) conducting other activities that further the
purposes of this section, including the modification
of an existing facility to use a portion of a facility
to provide a safe haven.
‘‘(b) DEFINITION.—For purposes of this section, the
term ‘safe haven’ means housing for homeless persons
who, at the time, are unwilling or unable to participate
in mental health treatment programs or to receive other
supportive services. Such a facility may provide—
‘‘(1) 24-hour residence for eligible persons who
may reside for an unspecified duration;
‘‘(2) private or semiprivate accommodations;
‘‘(3) common use of kitchen facilities, dining
rooms, and bathrooms;
‘‘(4) supportive services to eligible persons who
are not residents on a drop-in basis; and
‘‘(5) overnight occupancy limited to no more
than 25 persons.
‘‘(c) ELIGIBILITY FOR SSI AND MEDICAID.—
‘‘(1) SUPPLEMENTAL
SECURITY
INCOME.—All
provisions of the supplemental security income pro-
gram under title XVI of the Social Security Act and
of State programs in supplementation thereof shall
apply to participants in the safe havens demonstra-
tion program under this subtitle, except that no indi-
vidual living in a safe haven shall—
‘‘(A) be considered an inmate of a public
institution 
(as 
provided 
in 
section
1611(e)(1)(A) of such Act); or
‘‘(B) have benefits under such title XVI re-
duced or terminated because of the receipt of
support and maintenance (as provided in sec-
tion 1612(a)(2)(A) of such Act), to the extent
such support and maintenance is received as a
result of participation in the safe havens dem-
onstration program.
‘‘(2) MEDICAID.—A safe haven shall not be
considered a hospital, nursing facility, institution for
mental disease as defined under section 1905(i) of
the Social Security Act, or any other inpatient facil-
ity, for purposes of the programs under title XIX of
such Act, and individuals shall not be denied eligi-
bility for Medicaid because of residency in such resi-
dence.
‘‘SEC. 435. SHELTER PLUS CARE.
‘‘(a) ELIGIBLE ACTIVITIES.—A recipient may use
grant amounts under this subtitle to provide shelter plus
care for homeless persons with disabilities (primarily per-
sons who have severe and persistent mental or emotional
impairments that seriously limit a person’s ability to live
independently, have chronic programs with alcohol, drugs,
or both, or have acquired immunodeficiency syndrome and
related diseases) and the families of such persons.
‘‘(b) DEFINITION.—For purposes of this section, the
term ‘shelter plus care’ means rental housing assistance,
in connection with supportive services funded from sources
other than under this section. Such rental housing assist-
ance may be tenant-based, project-based, or sponsor-
based.
‘‘SEC. 436. ADMINISTRATIVE AND CAPACITY-BUILDING EX-
PENSES.
‘‘(a) AVAILABILITY OF GRANT AMOUNTS.—A recipi-
ent may use grant amounts under this subtitle for the fol-
lowing expenses:
‘‘(1) ADMINISTRATIVE EXPENSES.—During—
‘‘(A) the first year in which a recipient re-
ceives grant amounts under this subtitle, for
administrative expenses in connection with
planning the development of, and establishing,
its program under this subtitle;
‘‘(B) subsequent years, to defray the cost
of administering the program; and
‘‘(C) any year in which a recipient receives
grant amounts under this subtitle, to defray the