I
103D CONGRESS
2D SESSION
H. R. 3768
To transfer the emergency food and shelter program for the homeless of
the Federal Emergency Management Agency to the Department of Hous-
ing and Urban Development and to provide funding to States, metropoli-
tan cities, urban counties, and Indian tribes on a formula grant basis
for housing and related activities for the homeless in order to give
grantees maximum flexibility to meet the needs of the homeless and
to improve the efficiency and effectiveness of the homeless housing assist-
ance programs under the Stewart B. McKinney Homeless Assistance
Act, and for other purposes.
IN THE HOUSE OF REPRESENTATIVES
FEBRUARY 2, 1994
Mrs. ROUKEMA (for herself and Mr. RIDGE) introduced the following bill;
which was referred to the Committee on Banking, Finance and Urban Affairs
A BILL
To transfer the emergency food and shelter program for
the homeless of the Federal Emergency Management
Agency to the Department of Housing and Urban Devel-
opment and to provide funding to States, metropolitan
cities, urban counties, and Indian tribes on a formula
grant basis for housing and related activities for the
homeless in order to give grantees maximum flexibility
to meet the needs of the homeless and to improve the
efficiency and effectiveness of the homeless housing as-
sistance programs under the Stewart B. McKinney
Homeless Assistance Act, 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 and Preven-
tion Formula Grant Amendments Act of 1994’’.
(b) TABLE OF CONTENTS.—
Sec. 1. Short title and table of contents.
TITLE I—DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
EMERGENCY FOOD AND SHELTER PROGRAM
Sec. 101. Transfer of responsibilities regarding emergency food and shelter pro-
gram from FEMA to HUD.
Sec. 102. Eligible grant activities.
Sec. 103. Authorization of appropriations.
Sec. 104. Clerical amendments.
TITLE II—HOMELESS HOUSING ASSISTANCE AND PREVENTION
FORMULA GRANT PROGRAM
Sec. 201. Homeless housing assistance and prevention formula grants.
Sec. 202. Transition provisions.
Sec. 203. Conforming amendments.
TITLE 
I—DEPARTMENT 
OF
HOUSING AND URBAN DEVEL-
OPMENT EMERGENCY FOOD
AND SHELTER PROGRAM
SEC. 101. TRANSFER OF RESPONSIBILITIES REGARDING
EMERGENCY FOOD AND SHELTER PROGRAM
FROM FEMA TO HUD.
(a) IN GENERAL.—Title III of the Stewart B.
McKinney Homeless Assistance Act (42 U.S.C. 11331 et
seq.) is amended—
(1) in section 301(a)—
(A) by striking ‘‘Director of the Federal
Emergency Management Agency’’ and inserting
‘‘Secretary of Housing and Urban Develop-
ment’’; and
(B) in subsection (b), by striking the sec-
ond sentence;
(2) in section 303—
(A) in the section heading, by striking
‘‘FEDERAL
EMERGENCY
MANAGEMENT
AGENCY’’ and inserting ‘‘DEPARTMENT OF
HOUSING AND URBAN DEVELOPMENT’’; and
(B) in subsection (b)(1), by striking ‘‘Fed-
eral Emergency Management Agency’’ and in-
serting ‘‘Department of Housing and Urban
Development’’;
(3) in the heading for section 311, by striking
‘‘THE DIRECTOR’’ and inserting ‘‘SECRETARY’’;
(4) in section 321—
(A) by striking paragraph (1);
(B) 
by 
redesignating 
paragraphs 
(2)
through (6) as paragraphs (1) through (5), re-
spectively; and
(C) by inserting before paragraph (7) the
following new paragraph:
‘‘(6) The term ‘Secretary’ means the Secretary
of Housing and Urban Development.’’; and
(5) by striking ‘‘Director’’ and inserting ‘‘Sec-
retary’’ in each of the following places:
(A) The first sentence of section 301(b).
(B) Section 301(c).
(C) Section 303(a).
(D) The matter in section 303(b) that pre-
cedes paragraph (1).
(E) Section 311.
(b) CLERICAL AMENDMENT.—The heading for title
III of the Stewart B. McKinney Homeless Assistance Act
(42 U.S.C. 11331 et seq.) is amended to read as follows:
‘‘TITLE 
III—DEPARTMENT 
OF
HOUSING AND URBAN DEVEL-
OPMENT EMERGENCY FOOD
AND SHELTER PROGRAM’’.
(c) EFFECTIVE DATE.—The amendments in sub-
sections (a) and (b) shall be made and shall take effect
on October 1, 1994.
SEC. 102. ELIGIBLE GRANT ACTIVITIES.
Section 313(a) of the Stewart B. McKinney Homeless
Assistance Act (42 U.S.C. 11343(a) is amended—
(1) in paragraph (1), by striking ‘‘to permanent
homes, and attention’’ and inserting the following:
moderate rehabilitation, grants for other purposes,
and other assistance made eligible under chapter 2.
‘‘(2) 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 of 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).
‘‘(3) The term ‘emergency activities’ means—
‘‘(A) activities that help very low-income
families and persons avoid becoming homeless
in accordance with section 421; and
‘‘(B) supportive services that are provided
in an emergency shelter developed in accord-
ance with section 422.
‘‘(4) The term ‘grantee’ means a State, metro-
politan city, urban county, unit of general local gov-
ernment, Indian tribe, or consortium eligible to re-
ceive grants under section 404(b)(2), that receives
grants from the Secretary under section 403(a).
‘‘(5) The term ‘Indian tribe’ has the meaning
given such term in section 102 of the Housing and
Community Development Act of 1974.
‘‘(6) The term ‘locality’ means the geographical
area within the jurisdiction of a local government.
‘‘(7) The term ‘metropolitan city’ has the mean-
ing given the term under section 102 of the Housing
and Community Development Act of 1974.
‘‘(8) The term ‘operating costs’ means expenses
incurred by a project sponsor operating any housing
assisted under this subtitle with respect to the ad-
ministration, maintenance, repair, and security of
such housing and utilities, fuels, furnishings, and
equipment for such housing. The term includes ex-
penses incurred by a project sponsor operating sup-
portive housing under this subtitle with respect to
the conducting of the assessment required by section
423(e)(1)(B) and the provision of supportive services
to the residents of such housing.
‘‘(9) The term ‘outpatient health services’
means outpatient health care, outpatient mental
health services, outpatient substance abuse services,
and case management services. The term includes
child immunization.
‘‘(10) The term ‘private nonprofit organization’
means a secular or religious organization described
in section 501(c) of the Internal Revenue Code of
1986 that is exempt from taxation under subtitle A
of such Code, has an accounting system and a vol-
untary board, and does not discriminate in the pro-
vision of assistance.
‘‘(11) 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 operating
costs.
‘‘(12) The term ‘project sponsor’ means any
governmental or private nonprofit organization that
receives assistance from a grantee under section
403(a), is approved by the grantee as to financial re-
sponsibility, and is directly responsible for the ad-
ministration of assistance provided under this sub-
title. Each project sponsor shall act as the fiscal
agent of the Secretary with respect to assistance
provided to such project sponsor under this subtitle.
‘‘(13) The term ‘Secretary’ means the Secretary
of Housing and Urban Development.
‘‘(14) The term ‘State’ means the States of the
United States, the District of Columbia, and the
Commonwealth of Puerto Rico, or any agency or in-
strumentality thereof that is established pursuant to
legislation and designated by the chief executive to
act on behalf of the jurisdiction with regard to provi-
sions of this Act.
‘‘(15) The term ‘supportive services’ means as-
sistance provided in connection with a project that
addresses the special needs of individuals (such as
homeless persons with disabilities and homeless fam-
ilies with children) intended to be served by the
project. Supportive services may include such activi-
ties as (A) establishing and operating a child care
services program for homeless families, (B) estab-
lishing and operating an employment assistance pro-
gram, (C) providing outpatient health services, food,
and case management, (D) providing assistance in
obtaining permanent housing, employment counsel-
ing, and nutritional counseling, (E) providing secu-
rity arrangements necessary for the protection of
residents of projects and for homeless persons using
the project, (F) providing assistance in obtaining
other Federal, State, and local assistance available
for such residents (including mental health benefits,
employment counseling, and medical assistance, but
not including major medical equipment), and (G)
providing other appropriate services.
‘‘(16) The term ‘unit of general local govern-
ment’ means any city, town, township, county, par-
ish, village, or other general purpose political sub-
division of a State; Guam, the Commonwealth of the
Northern Mariana Islands, the Virgin Islands,
American Samoa, or a general purpose political sub-
division thereof; and the Trust Territory of the Pa-
cific Islands and any other possession of the United
States.
‘‘(17) The term ‘urban county’ has the meaning
given the term under section 102 of the Housing
and Community Development Act of 1974.
‘‘(18) The term ‘very low-income persons and
families’ means persons and families that have in-
comes not exceeding 50 percent of the median in-
come for the area, as determined and adjusted by
the Secretary under section 3(b)(2) of the United
States Housing Act of 1937.
‘‘SEC. 403. GENERAL AUTHORITY.
‘‘(a) GRANTS
FOR HOMELESS HOUSING ASSIST-
ANCE.—
‘‘(1) AUTHORITY AND ELIGIBILITY.—The Sec-
retary of Housing and Urban Development shall, to
the extent that amounts are approved in appropria-
tion Acts pursuant to section 408, make grants to
States and metropolitan cities and urban counties to
carry out activities under this subtitle designed to
meet the emergency and supportive housing needs of
the homeless, and help very low-income families and
persons avoid becoming homeless. A jurisdiction
shall be eligible to receive a grant under this subtitle
for a fiscal year only if—
‘‘(A) in the case of any jurisdiction that
has been designated as a participating jurisdic-
tion for purposes of titles I and II of the Cran-
ston-Gonzalez National Affordable Housing Act,
the jurisdiction has complied with the require-
ments under section 105 of such Act for receipt
of direct assistance from the Secretary for the
year; or
‘‘(B) in the case of any jurisdiction that is
not so designated, the jurisdiction submits to
the Secretary any information and plans de-
scribed in section 105(b) of such Act for the
year that the Secretary considers appropriate
for purposes of this subtitle, and the Secretary
approves such information and plans, in accord-
ance with procedures as the Secretary shall es-
tablish.
‘‘(2) CONTRACTS WITH PROJECT SPONSORS.—A
grantee shall carry out activities authorized under
this subsection through contracts with project spon-
sors, except that a grantee that is a State shall co-
ordinate with and obtain the approval of the unit of
general local government or any agencies, organiza-
tions, or contractors of the unit, or other entities,
carrying out local homeless assistance programs for
the locality in which a project is to be located before
entering into such contracts.
‘‘(b) USE OF ASSISTANCE.—
‘‘(1) APPROVED
ACTIVITIES.—A grantee may
use grants only for approved activities established by
the Secretary. Approved activities shall include—
‘‘(A) the provision of assistance to help
very low-income persons and families avoid be-
coming homeless under section 421;
‘‘(B) the development of emergency shel-
ters for the homeless under section 422;
‘‘(C) the development of supportive hous-
ing for homeless individuals under section 423;
and
‘‘(D) such other activities that the Sec-
retary develops in cooperation with grantees
under section 424.
‘‘(2) STANDARDS AND GUIDELINES.—The Sec-
retary shall establish standards and guidelines for
approved activities under paragraph (1). The Sec-
retary shall permit grantees to refine and adapt such
standards and guidelines for individual projects,
where such refinements and adaptations are made
necessary by local circumstances.
‘‘(3) LIMIT
ON
USE
FOR
EMERGENCY
SHEL-
TER.—A grantee may use not more than 25 percent
of the grants allocated under this subsection for the
construction, acquisition, rehabilitation, or lease of
emergency shelters, except that the Secretary may
approve a higher limitation for a grantee if the
grantee demonstrates that other approved activities
under this subsection are already being carried out
in the jurisdiction with resources not provided under
this subtitle.
‘‘(4) PROVISION OF SUPPORTIVE SERVICES.—
All or part of any supportive services provided under
this subtitle may be provided directly by the project
sponsor or by arrangements with other public or pri-
vate service providers.
‘‘SEC. 404. ALLOCATION AND DISTRIBUTION OF FUNDS.
‘‘(a) IN GENERAL.—
‘‘(1) ALLOCATION
PERCENTAGES.—After re-
serving amounts under paragraph (2) for Indian
tribes, the Secretary shall allocate 80 percent of the
amount of assistance available under this subtitle to
metropolitan cities and urban counties and 20 per-
cent of such amount to States, in accordance with
this section.
‘‘(2) INDIAN TRIBE ALLOCATION.—For each fis-
cal year, of the amount approved in appropriation
Acts to carry out this subtitle, the Secretary shall
reserve for grants to Indian tribes 1 percent of the
amount appropriated. The Secretary shall provide
for the distribution of amounts under this paragraph
to Indian tribes on the basis of a competition con-
ducted pursuant to specific criteria for the selection
of Indian tribes to receive such amounts. The cri-
teria shall be contained in a regulation issued by the
Secretary after notice and opportunity for public
comment.
‘‘(3) AMOUNT FOR METROPOLITAN CITIES AND
URBAN COUNTIES.—For each fiscal year, the Sec-
retary shall determine the amount to be allocated to
each metropolitan city and urban county under this
subtitle—
‘‘(A) by dividing the amount available for
allocation to all metropolitan cities and urban
counties under this subtitle for the fiscal year
by the amount available for allocation to such
cities and counties under section 106(a) of the
Housing and Community Development Act of
1974 for the prior fiscal year; and
‘‘(B) for each such city or county, by mul-
tiplying the result under subparagraph (A) by
the amount that was allocated to such city and
county under section 106(b) of such Act for the
prior fiscal year.
‘‘(4) AMOUNT
FOR
STATES.—For each fiscal
year, the Secretary shall determine the amount to be
allocated to each State under this subtitle—
‘‘(A) by dividing the amount available for
allocation to States under this subtitle for the
fiscal year by the amount available for alloca-
tion to States under section 106(d) of the
Housing and Community Development Act of
1974 for the prior fiscal year; and
‘‘(B) for each State, by multiplying the re-
sult under subparagraph (A) by the amount
that was allocated to such State under section
106(d) of such Act for the prior fiscal year.
‘‘(b) ALLOCATION RULES.—
‘‘(1) GENERAL
MINIMUM
ALLOCATION
RE-
QUIREMENT.—If, under allocation pursuant to sub-
section (a), any metropolitan city or urban county
would receive in any fiscal year 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 allocated to the State.
‘‘(2) ALLOCATION FOR CONSORTIA.—
‘‘(A) ELIGIBILITY.—Notwithstanding para-
graph (1), a jurisdiction shall be eligible to re-
ceive grants under this subtitle if the Secretary
finds that geographically contiguous metropoli-
tan cities or urban counties have formed a con-
sortium that, in the determination of the Sec-
retary—
‘‘(i) has sufficient authority and ad-
ministrative capability to act on behalf of
its member jurisdictions in carrying out
the provisions of this section;
‘‘(ii) will, according to a written cer-
tification by the State, direct its activities
to the alleviation of the State’s most severe
problems of homelessness; and
‘‘(iii) will receive an allocation under
subparagraph (B) that meets the percent-
age requirement of paragraph (1).
‘‘(B) ALLOCATION.—A consortium shall be
deemed to be a metropolitan city or urban
county for purposes of this section. The alloca-
tion for a consortium that has met the require-
ments under subparagraph (A) shall equal the
total of the allocations of its member jurisdic-
tions.
‘‘(3) GRANTEE STATUS.—Once a State, metro-
politan city, or urban county becomes a grantee, it
shall remain eligible to receive grants for subsequent
fiscal years, except as provided in paragraph (4).
‘‘(4) REVOCATION.—The Secretary may revoke
a jurisdiction’s status as a grantee if—
‘‘(A) the Secretary finds, after reasonable
notice and opportunity for hearing, that the ju-
risdiction is unwilling or unable to carry out the
provisions of this subtitle; or
‘‘(B) the jurisdiction’s allocation is less
than the minimum allocation requirement under
paragraph (1) for 2 consecutive years.
‘‘(c) INITIAL ALLOCATION
OF ASSISTANCE.—Not
later than 60 days after any amounts to carry out this
section are provided in an appropriation Act (or, in the
case of the 1-year period beginning on the date of the en-
actment of this Act, not later than 30 days after regula-
tions to implement this section are issued or required to
be issued, whichever occurs first), the Secretary shall allo-
cate amounts in accordance with this section and promptly
notify each jurisdiction receiving an allocation of its alloca-
tion amount. If a metropolitan city or urban county is not
eligible to receive grants because its allocation amount is
less than the amount required under subsection (b)(1), the
Secretary shall inform the metropolitan city or urban
county in writing how the metropolitan city or urban coun-
ty may become eligible to receive grants.
‘‘(d) DISTRIBUTION OF ASSISTANCE BY STATES.—
‘‘(1) 
COMPREHENSIVE
HOUSING
AFFORD-
ABILITY STRATEGY.—Each State shall distribute its
allocation of assistance under this subsection in ac-
cordance with the need for homeless assistance as
identified in the State’s comprehensive housing af-
fordability strategy approved as required under sec-
tion 403(a)(1) and shall coordinate its efforts where
assistance is distributed to a unit of general local
government that is a grantee. Notwithstanding the
preceding sentence, for each allocation of assistance
under this section, each State may distribute not
more than 25 percent of the amounts allocated to
the State to metropolitan cities and urban counties
that receive an allocation under subsection (a)(3).
‘‘(2) DIRECT USE AND DISTRIBUTION.—A State
may use amounts allocated to it under this section
to carry out eligible activities directly or to distribute
amounts to units of general local government. When
a State carries out activities directly (including dis-
tribution of amounts to private nonprofit organiza-
tions under subsection (e)), it shall consult with the
applicable chief executive officer of the unit of gen-
eral local government. When a State distributes
amounts to private nonprofit organizations, the
State shall request the applicable unit of general
local government to review and comment on each ap-
plication from such an organization for a project to
be assisted under this subtitle. The State shall re-
quire the unit of general local government to submit
comments to the State within 30 days after the date
of the request and shall take any comments into
consideration in deciding whether to fund the appli-
cation.
‘‘(e) DISTRIBUTION
TO
NONPROFIT
ORGANIZA-
TIONS.—A grantee may distribute all or a portion of its
grant to private nonprofit organizations providing assist-
ance to homeless individuals. In the case of a grantee that
is a State, any such distribution shall be made in accord-
ance with subsection (d).
‘‘(f) REALLOCATION.—Any amounts allocated for a
fiscal year pursuant to subsections (a) and (b) that are
not received by the jurisdiction to which they were allo-
cated for any reason, are returned, or which become avail-
able as a result of actions under section 405(f)(4), shall
be reallocated in the fiscal year to grantees that received
an allocation in accordance with subsections (a) and (b),
or in the next fiscal year if the Secretary determines that
the amounts available for reallocation are so small that
reallocation in the same year would not be feasible.
‘‘SEC. 405. REQUIREMENTS OF GRANTEES AND PROJECT
SPONSORS.
‘‘(a) MATCHING
REQUIREMENTS.—Each grantee
shall supplement the grants provided to the grantee under
this subtitle with an amount of funds from non-Federal
sources equal to 10 percent of the amount provided under
this subtitle. Each grantee shall certify to the Secretary,
as the Secretary shall require, its compliance with this
subsection, describing the sources and amounts of such
supplemental funds. Supplemental funds may include the
value of any donated material or building, the value of
any lease on a building, any salary paid to staff to carry
out the program of a project sponsor, and the value of
the time and services contributed by volunteers to carry
out the program of a project sponsor at a rate determined
by the Secretary.
‘‘(b) HOUSING QUALITY.—Each grantee shall certify
to the Secretary, as the Secretary shall require, that any
housing assisted with amounts provided to the grantee
under this subtitle shall be decent, safe, and sanitary and
conform with all applicable State and local housing and
building codes and licensing requirements in the jurisdic-
tion in which the housing is located.
‘‘(c) ASSISTANCE TO HOMELESS PERSONS.—Each
grantee shall certify to the Secretary, as the Secretary
shall require, that homeless persons who are assisted with
amounts provided to the grantee under this subtitle will
be assisted in obtaining—
‘‘(1) appropriate supportive services; and
‘‘(2) other Federal, State, local, and private as-
sistance available for homeless persons.
‘‘(d) PROHIBITION OF SUBSTITUTION OF FUNDS.—
Each grantee shall certify to the Secretary, as the Sec-
retary shall require, that neither assistance received under
this subtitle nor any State or local government funds used
to supplement such assistance will be used to replace other
public funds previously used, or designated for use, to as-
sist the homeless.
‘‘(e) CIVIL RIGHTS COMPLIANCE.—Each grantee
shall certify to the Secretary, as the Secretary shall re-
quire, that the grant will be conducted and administered
in conformity with title VI of the Civil Rights Act of 1964
and the Fair Housing Act, and that the grantee will af-
firmatively further fair housing.
‘‘(f) REVIEW AND ADJUSTMENTS.—
‘‘(1) PERFORMANCE
REPORT.—Each grantee
shall submit to the Secretary, at a time determined
by the Secretary, a data-based performance and
evaluation report, by project, concerning the use of
amounts made available to the grantee under this
subtitle. The grantee shall make the report publicly
available for inspection by citizens of the grantee’s
jurisdiction in sufficient time to permit comment on
the report before its submission. The grantee’s re-
port shall indicate its programmatic accomplish-
ments and include a summary of any comments re-
garding the grantee’s program received by the grant-
ee from citizens in its jurisdiction.
‘‘(2) OTHER REPORTS.—The Secretary may re-
quire grantees and other recipients of assistance
under this subtitle to submit to the Secretary such
other reports and other information as the Secretary
determines are necessary to monitor the program.
‘‘(3) REVIEWS
AND
AUDITS.—The Secretary
shall, on at least an annual basis, make such reviews
and audits as may be necessary or appropriate to
determine the following:
‘‘(A) DIRECT AMOUNTS.—In the case of
grants made to States (with respect to amounts
used by a State to carry out eligible activities
directly) and metropolitan cities, and urban
counties—
‘‘(i) whether the grantee has carried
out its activities in a timely manner;
‘‘(ii) whether the grantee has carried
out such activities and its certifications in
accordance with the requirements of this
subtitle and with other applicable laws;
and
‘‘(iii) whether the grantee has a con-
tinuing capacity to carry out such activities
in a timely manner.
‘‘(B) DISTRIBUTED
AMOUNTS.—In the
case of grants made to States with respect to
amounts distributed by the State to units of
general local government—
‘‘(i) whether the State has distributed
funds to units of general local government
in a timely manner;
‘‘(ii) whether the State has carried
out its certifications in compliance with the
requirements of this subtitle and other ap-
plicable laws; and
‘‘(iii) whether the State has made
such reviews and audits of the units of
general local government as may be nec-
essary or appropriate to determine whether