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 in a manner that pro-
vides that the percentage of the total amount
referred to in subparagraph (A) for any fiscal
year that is allocated for any State or allocation
unit of general local government is equal to the
percentage of the total amount available for
section 106 of the Housing and Community De-
velopment Act of 1974 for the prior fiscal year
that was allocated for such State or allocation
unit of general local government.
‘‘(C) MINIMUM AMOUNT.—If, in any fiscal
year, allocation under the provisions of subpara-
graphs (A) and (B) would result in any alloca-
tion unit of general local government receiving
a grant of less than 0.05 percent of the
amounts appropriated to carry out this subtitle
for the fiscal year, such amount shall instead be
reallocated to the State for use under section
410(b).
‘‘(D) 70 PERCENT FOR UNITS OF GENERAL
LOCAL GOVERNMENT.—In each fiscal year, the
amount allocated under this paragraph for each
allocation unit of general local government shall
be the amount that results from increasing all
of the amounts determined pursuant to the pre-
ceding subparagraphs for allocation units of
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.
‘‘(3) MINIMUM STATE ALLOCATION.—Notwith-
standing paragraph (2), if, in allocating amounts for
States under paragraph (1) for any fiscal year, the
amount allocated for the year for a State is less
than $2,000,000, the allocation for the State shall
instead be $2,000,000 and the increase shall be de-
ducted pro rata from the allocations of other States.
‘‘(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 AND INSULAR AREAS.—
‘‘(1) IN GENERAL.—Except as provided in para-
graphs (2), (3), and (4), an allocation unit of gen-
eral local government or insular area shall admin-
ister 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 or insular
area may elect for any fiscal year to designate
a public agency or a private nonprofit organiza-
tion (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 or insular area, or (if appropriate) a public
agency or private nonprofit organization designated
by the jurisdiction under paragraph (2), does not re-
ceive a grant under section 409 for any fiscal year
because of failure to meet the application require-
ments of section 408, the Secretary may designate
an agency or organization meeting the criteria estab-
lished 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 or insular
area will not be used in the jurisdiction as provided
by the preceding provisions of this subsection, the
Secretary may administer such amounts for the ju-
risdiction. The Secretary shall prescribe such proce-
dures 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 and provide support
for the operation of 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 one member represent-
ing 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 members of the board that rep-
resent homeless individuals and families, homeless
advocates, or nongovernmental entities that provide
assistance to homeless individuals and families. They
shall be individuals who were recommended for
membership by individuals and entities 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 as-
sistance;
‘‘(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
resolution of citizen complaints related to applica-
tions or performance reports under this subtitle.
‘‘(d) REQUIREMENTS FOR CITIZEN PARTICIPATION
FOR STATE RECIPIENTS AND RECIPIENTS OF AMOUNTS
FROM THE SECRETARY.—
‘‘(1) STATE RECIPIENTS.—The State may pre-
scribe citizen participation requirements comparable
(to the extent appropriate) to the requirements
under the preceding provisions of this section for
cases in which a State distributes grant amounts to
State recipients, as provided in section 410(b)(2).
‘‘(2) RECIPIENTS FROM SECRETARY.—The Sec-
retary may prescribe citizen participation require-
ments comparable (to the extent appropriate) to the
requirements under the preceding provisions of this
section for cases in which the Secretary—
‘‘(A) administers the grant amounts of an
allocation unit of general local government, as
provided in section 410(a)(4); or
‘‘(B) distributes grant amounts to recipi-
ents, as provided in paragraph (3), (4), or (5)
of section 410(b).
‘‘(3) INAPPLICABLE LAWS.—The Federal Advi-
sory Committee Act and section 12 of the Depart-
ment of Housing and Urban Development Act shall
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-
less assistance system in conformity with its ap-
plication under this subtitle;
‘‘(C) has carried out its activities and cer-
tifications in accordance with the requirements
of this subtitle and other applicable laws; and
‘‘(D) has a continuing capacity to carry
out its activities in a timely manner; and
‘‘(2) in the case of States distributing grant
amounts to State recipients, whether the State—
‘‘(A) has distributed amounts to State re-
cipients in a timely manner and in conformance
with the method of distribution described in its
application;
‘‘(B) has carried out its activities and cer-
tifications in compliance with the requirements
of this subtitle and other applicable laws; and
‘‘(C) has made such reviews and audits of
the State recipients as may be necessary or ap-
propriate to determine whether they have satis-
fied the applicable performance criteria con-
tained in paragraph (1).
The Secretary may make appropriate adjustments in the
amount of grants in accordance with the Secretary’s find-
ings under this subsection. With respect to assistance
made available for State recipients, the Secretary may ad-
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) HAWAIIAN HOME LANDS.—The provisions of
this subtitle relating to discrimination on the basis of race
shall not apply to the provision of assistance under this
subtitle to the Hawaiian Home Lands.
‘‘SEC. 415. CONSULTATION.
‘‘In carrying out the provisions of this subtitle, in-
cluding the issuance of regulations, the Secretary shall
consult with other Federal agencies administering pro-
grams affecting 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 1998, 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 1997, 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 onsite 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.
‘‘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
cost of establishing and operating the board re-
ferred to in section 411(b).
Not more than 5 percent of any amounts provided
to a recipient under this subtitle for a fiscal year
may be used for activities under this paragraph.
‘‘(2) CAPACITY BUILDING FOR NONPROFIT OR-
GANIZATIONS.—For building the capacity of private
nonprofit organizations to participate in the com-
prehensive homeless assistance system of the recipi-
ent, except that not more than 2 percent of any
amounts provided to a recipient under this subtitle
for a fiscal year may be used for activities under this
paragraph.
‘‘(b) PROVISION OF ADMINISTRATIVE EXPENSES FOR
CERTAIN ENTITIES.—
‘‘(1) PROVISION OF AMOUNTS.—Any recipient
under paragraph (2) shall make available, to defray
the administrative expenses of the designee or the
State, not more than 5 percent from amounts eligi-
ble for this purpose under subsection (a)(1).
‘‘(2) RECIPIENTS
COVERED.—The recipients
under this paragraph shall be—
‘‘(A) any allocation unit of general local
government or insular area, that designates a
public agency or a private nonprofit organiza-
tion under section 410(a)(2);
‘‘(B) any State recipient that designates a
public agency or a private nonprofit organiza-
tion under section 410(b)(3)(A)(ii); and
‘‘(C) any State recipient that enters into
an agreement under section 410(b)(3)(A)(iii)
with a State.
‘‘SEC. 437. INNOVATIVE HOMELESS INITIATIVES.
‘‘(a) ELIGIBLE ACTIVITIES.—A recipient may use
grant amounts under this subtitle for—
‘‘(1) establishing innovative programs to dem-
onstrate methods of undertaking comprehensive
strategies for assisting homeless individuals and
families (including homeless individuals who have
the disease of acquired immunodeficiency syndrome
or who are infected with HIV), through cooperative
efforts in partnership with other levels of govern-
ment and the private sector (including nonprofit or-
ganizations, foundations, and communities) and
through a variety of activities, including the coordi-
nation of efforts and the filling of gaps in available
services and resources; and
‘‘(2) to obtain technical assistance in establish-
ing a program for providing homeless assistance in
accordance with the provisions of this subtitle, ex-
cept that not more than 10 percent of the amount
provided to a recipient under this subtitle for a fiscal
year may be used under this paragraph.
‘‘(b) REQUIREMENTS.—A recipient may use grant
amounts to establish an innovative program under sub-
section (a)(1) only if—
‘‘(1) the existing public and private systems for
homelessness prevention, outreach, assessment, shel-
ter, services, transitional services, transitional hous-
ing, and permanent housing available within the ju-
risdiction of the recipient would benefit from addi-
tional resources to achieve a comprehensive ap-
proach to meeting the needs of individuals and fami-
lies who are homeless, or who are very low-income
and at risk of homelessness;
‘‘(2) the recipient works cooperatively with the
Department of Housing and Urban Development,
nonprofit organizations, foundations, other private
entities, and the community, to the extent feasible,
to design and implement the program; and
‘‘(3) the recipient obtains a commitment from
the jurisdiction to make necessary changes in policy
and procedure to provide sufficient flexibility and re-
sources as necessary to implement and sustain the
program.
‘‘SEC. 438. OTHER APPROVED ACTIVITIES.
‘‘The Secretary, in cooperation with grantees, recipi-
ents, and other appropriate parties, shall develop addi-
tional activities to carry out the purposes of this subtitle.
A recipient may use grants amounts under this subtitle
to carry out any such activities developed and approved
by the Secretary.
‘‘Subtitle B—Other Permanent Housing
Assistance Programs for the Homeless’’.
SEC. 412. REGULATIONS AND TRANSITION PROVISIONS.
(a) IN GENERAL.—Not later than May 1, 1998, the
Secretary of Housing and Urban Development (in this sec-
tion referred to as the ‘‘Secretary’’) shall publish final reg-
ulations to implement the amendments made by this sub-
title. The final rule shall be published after notice and op-
portunity for public comment in accordance with section
553 of title 5, United States Code.
(b) TRANSITION PROVISIONS.—
(1) EMERGENCY SHELTER GRANTS PROGRAM.—
Notwithstanding any other provision of law, during
fiscal year 1998, the Secretary shall allocate grants
from amounts available for such year under subtitle
A of title IV of the Stewart B. McKinney Homeless
Assistance Act (as amended by this Act) in accord-
ance with the provisions of subtitle B of title IV of
the Stewart B. McKinney Homeless Assistance Act
(relating to emergency shelter grants), as such pro-
visions existed immediately before the enactment of
this Act.
(2) FAILURE TO PUBLISH REGULATIONS.—
(A) IN GENERAL.—If the Secretary fails to
publish final regulations as provided by sub-
section (a), the Secretary shall distribute the
amounts available for fiscal year 1998 under
subtitle A of title IV of the Stewart B. McKin-
ney Homeless Assistance Act (as amended by
this Act) (excluding amounts allocated under
paragraph (1)) in accordance with the following
provisions of title IV of the Stewart B. McKin-
ney Homeless Assistance Act, as such provi-
sions existed immediately before the enactment
of this Act:
(i) Subtitle C (relating to supportive
housing).
(ii) Subtitle D (relating to safe ha-
vens).
(iii) Subtitle F (relating to shelter
plus care).
(B) PROCEDURE.—For purposes of award-
ing assistance under this paragraph, the Sec-
retary may, as appropriate—
(i) provide for use of a single applica-
tion; and
(ii) publish a single notice of funding
availability.
(3) MINIMUM AMOUNTS.—The Secretary shall
determine the amount to be allocated for each of the
programs referred to in this subsection, but the
amount so allocated for each such program shall not
be less than the amount appropriated for the pro-
gram for fiscal year 1997.
(c) TECHNICAL ASSISTANCE.—Of any amounts ap-
propriated to carry out section 2 of the HUD Demonstra-
tion Act of 1993 in fiscal year 1998, the Secretary may
use not more than 10 percent for providing technical as-
sistance to assist recipients under subtitle A of title IV
of the Stewart B. McKinney Homeless Assistance Act (as
amended by this subtitle) to establish a program for pro-
viding homeless assistance in accordance with the provi-
sions of such subtitle A.
SEC. 413. REPORT ON SINGLE ROOM OCCUPANCY ASSIST-
ANCE.
Not later than July 1, 1998, the Secretary shall sub-
mit a report to the Congress evaluating the effectiveness
of combining the programs for assistance for single room
occupancy dwellings under sections 451 and 452 of the
Stewart B. McKinney Homeless Assistance Act (as so re-
designated and amended by this Act) into the program
for assistance under subtitle A of title IV of such Act and,
if effective, describing how to provide such assistance
under the program under such subtitle A.
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, 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,
by such sums as may be necessary on or after October
1, 2000, and by such sums as may be necessary on or
after October 1, 2001.’’.
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 per-
sons.
‘‘(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;
‘‘(F) a description of the resources that
are expected to be made available to provide the
supportive services required by subsection (d);
‘‘(G) a description of the mechanisms for
developing a housing and supportive services
plan for each person and for monitoring each
person’s progress in meeting that plan;
‘‘(H) reasonable assurances satisfactory to
the Secretary that the supportive services will
be provided for the full term of the housing as-
sistance under this section and a certification
from the applicant that it will fund the support-
ive services itself if the planned resources do
not become available for any reason;
‘‘(I) a certification by the public official re-
sponsible for submitting the comprehensive
housing affordability strategy under section 105
of the Cranston-Gonzalez National Affordable
Housing Act that the proposed activities are
consistent with the approved housing strategy
of the unit of general local government within
which housing assistance under this section will
be provided; and
‘‘(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
that does not exceed the 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, 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 ‘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.
‘‘(5) The term ‘person with disabilities’ has the
meaning given such term in section 811 of the Cran-
ston-Gonzalez National Affordable Housing Act.
‘‘(6) The term ‘public housing agency’ has the
meaning given such term in section 3(b) of the
United States Housing Act of 1937.
‘‘(7) The term ‘recipient’ means an applicant
approved for participation in the program to provide
assistance under this section.
‘‘(8) The term ‘Secretary’ means the Secretary
of Housing and Urban Development.
‘‘(9) 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.
‘‘(10) 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.
‘‘(11) 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.
‘‘(12) 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 1998 and such sums as may be necessary for each
of fiscal years 1999, 2000, 2001, and 2002.’’.
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 1998 and such sums as may be nec-
essary for each of fiscal years 1999, 2000, 2001,
and 2002.’’.
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, 1998, in the manner provided
under the strategy.’’.
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