(3) The Secretaries may enter into contracts to carry
out the counseling required under the demonstration pro-
gram with entities or organizations that meet such re-
quirements as the Secretaries may establish.
(4) In developing the demonstration program, the
Secretaries shall consult with officials of the Bureau of
Prisons, officials of penal institutions of States and polit-
ical subdivisions of States, and such other officials as the
Secretaries determine appropriate.
(d) REPORT.—(1) Not later than two years after the
commencement of the demonstration program, the Sec-
retary of Veterans Affairs (after consultation with the Sec-
retary of Labor) shall submit to the Committees on Vet-
erans’ Affairs of the Senate and the House of Representa-
tives a report on the program.
(2) The report under paragraph (1) shall include the
following:
(A) A description of the implementation and
operation of the program.
(B) An evaluation of the effectiveness of the
program.
(C) Recommendations, if any, regarding an ex-
tension of the program.
(e) DURATION.—The authority of the Secretaries to
provide counseling services under the demonstration pro-
gram shall cease on the date that is four years after the
date of the commencement of the demonstration program.
(f) DEFINITIONS.—In this section:
(1) The term ‘‘eligible veteran’’ means a vet-
eran who—
(A) is a resident of a penal institution or
an institution that provides long-term care for
mental illness;
(B) is expected to be imminently released
or discharged (as the case may be) from the fa-
cility or institution; and
(C) is at risk for homelessness absent re-
ferral and counseling services provided under
the program (as determined under guidelines
established by the Secretaries).
(2) The term ‘‘veteran’’ has the meaning given
that term under section 101(2) of title 38, United
States Code.
(3) The term ‘‘imminent’’ means, with respect
to a release or discharge under paragraph (1)(B),
the 60-day period that ends on the date of such re-
lease or discharge.
SEC. 10. DEMONSTRATION PROGRAM FOR GRANTS FOR
INDEPENDENT GROUP HOMES FOR RECOV-
ERING VETERANS.
(a) ESTABLISHMENT
OF GRANT PROGRAM.—The
Secretary of Veterans Affairs (hereinafter in this section
referred to as the ‘‘Secretary’’) shall carry out a dem-
onstration program under which the Secretary shall make
grants to eligible entities to establish a project to provide
independent housing units in group houses sponsored by
the entities for occupancy by veterans recovering from al-
cohol or other substance use disorders.
(b) 
MAXIMUM
GRANT
AMOUNT
PER
GROUP
HOUSE.—The amount of any individual grant under this
program for the establishment of a group house may not
exceed $5,000.
(c) ELIGIBLE ENTITY.—The Secretary may make a
grant under this section to an entity applying for such
a grant only if the applicant for the grant—
(1) is a nonprofit private entity with the capac-
ity (as determined by the Secretary) to effectively
carry out a grant under this section;
(2) has demonstrated that adequate financial
support will be available to carry out the project for
which the grant has been sought consistent with the
plans, specifications, and schedule submitted by the
applicant; and
(3) has agreed to meet the applicable criteria
and requirements established under subsection (e)
(and the Secretary has determined that the appli-
cant has demonstrated the capacity to meet those
criteria and requirements).
(d) APPLICATION REQUIREMENT.—In order to re-
ceive a grant under this section, an eligible entity shall
submit to the Secretary an application. The application
shall set forth the following:
(1) The amount of the grant requested with re-
spect to a project.
(2) A description of the site for such project.
(3) Plans, specifications, and the schedule for
implementation of such project in accordance with
requirements prescribed by the Secretary under sub-
section (e).
(e) PROGRAM REQUIREMENTS.—The Secretary may
not make a grant to an applicant under this section unless
the applicant, in the application for the grant, agrees to
each of the following requirements:
(1) The eligible entity has in effect policies
that—
(A) prohibit the use of alcohol or any ille-
gal drug in the group house;
(B) provide for the immediate expulsion of
any resident of the group house who violates
the prohibition described in subparagraph (A);
(C) provide that payment for the costs of
the housing, including fees for rent, and utili-
ties, and all other fees applicable under residen-
tial leases on the part of the tenant, are made
by the residents of the group house; and
(D) provide that rules of conduct for resi-
dents of the group house are made by majority
vote of the residents, including rules regarding
the manner in which applications for residence
in the group house are approved.
(2) A group house shall provide for residence of
not more than 10 veterans.
(f) RECOVERY OF GRANT FUNDS.—(1) If an eligible
entity does not establish a project in accordance with the
requirements of this section or ceases to be in accordance
with such requirements for which the grant was made, the
United States shall be entitled to recover from such entity
the total of all unused grant amounts made under this
section to such recipient or entity in connection with such
project.
(2) Any amount recovered by the United States under
paragraph (1) may be obligated by the Secretary without
fiscal year limitation to carry out provisions of this sec-
tion.
(g) REGULATIONS.—Not later than 180 days after
the date of the enactment of this Act, the Secretary shall
promulgate regulations to carry out the demonstration
program under this section.
(h) AUTHORIZATION OF APPROPRIATIONS.—For pur-
poses of carrying out this section, there is authorized to
be appropriated to the Secretary of Veterans Affairs
$250,000 for each of fiscal years 2003 and 2004.
(i) REPORT.—Not later than three years after the
date of the enactment of this Act, the Secretary shall sub-
mit to the Committees on Veterans’ Affairs of the Senate
and House of Representatives a report describing the
grants made under this section. The report shall include
the following:
(1) An assessment of the effectiveness of the
demonstration program, including the number of
grants awarded.
(2) The geographic locations of the group
houses established under the program.
(3) The number of veterans residing in each
group house, the average number of veterans in all
group houses, and the average length of stay for vet-
erans in group houses.
(4) The number of veterans who were expelled
from such group houses.
(5) Recommendations for extending, expanding,
or modifying the program or funding under this sec-
tion.
Æ