[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3347 Introduced in House (IH)]







104th CONGRESS
  2d Session
                                H. R. 3347

To amend the Stewart B. McKinney Homeless Assistance Act to revise and 
extend programs providing urgently needed assistance for the homeless, 
                        and for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             April 25, 1996

Mr. Vento (for himself, Mr. Gonzalez, and Mr. Kennedy of Massachusetts) 
 introduced the following bill; which was referred to the Committee on 
                     Banking and Financial Services

_______________________________________________________________________

                                 A BILL


 
To amend the Stewart B. McKinney Homeless Assistance Act to revise and 
extend programs providing urgently needed assistance for the homeless, 
                        and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Stewart B. 
McKinney Homeless Assistance Amendments Act of 1996''.
    (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
                      TITLE I--GENERAL PROVISIONS

Sec. 101. Budget compliance.
             TITLE II--INTERAGENCY COUNCIL ON THE HOMELESS

Sec. 201. Authorization of appropriations.
Sec. 202. Chairperson.
Sec. 203. Extension.
TITLE III--FEDERAL EMERGENCY MANAGEMENT AGENCY FOOD AND SHELTER PROGRAM

Sec. 301. Authorization of appropriations.
                      TITLE IV--HOUSING ASSISTANCE

Sec. 401. Short title.
 Subtitle A--Reorganization of Certain McKinney Act Housing Provisions

Sec. 411. Flexible grant program.
Sec. 412. Regulations and transition provisions.
Sec. 413. Report on single room occupancy assistance.
 Subtitle B--Other Housing Assistance Programs for the Homeless Under 
                              McKinney Act

Sec. 421. Section 8 assistance for single room occupancy dwellings.
Sec. 422. Section 8 assistance for shelter plus care single room 
                            occupancy dwellings.
Sec. 423. Rural homelessness grant program.
Sec. 424. Clerical amendment.
         Subtitle C--Miscellaneous Homeless Housing Provisions

Sec. 431. Strategy to eliminate unfit transient facilities.

                      TITLE I--GENERAL PROVISIONS

SEC. 101. BUDGET COMPLIANCE.

    (a) In General.--This Act and the amendments made by this Act may 
not be construed to provide for new budget authority, budget outlays, 
or new entitlement authority, for fiscal year 1997, 1998, 1999, 2000, 
or 2001 in excess of the appropriate aggregate levels established by 
the concurrent resolution on the budget for such years for the programs 
authorized by this Act and the amendments made by this Act.
    (b) Definitions.--For purposes of this section, the terms ``budget 
authority'', ``budget outlays'', ``concurrent resolution on the 
budget'', and ``entitlement authority'' have the meanings given such 
terms in section 3 of the Congressional Budget Act of 1974.

             TITLE II--INTERAGENCY COUNCIL ON THE HOMELESS

SEC. 201. AUTHORIZATION OF APPROPRIATIONS.

    Section 208 of the Stewart B. McKinney Homeless Assistance Act (42 
U.S.C. 11318) is amended to read as follows:

``SEC. 208. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this title 
$1,000,000 for fiscal year 1997 and such sums as may be necessary for 
each of fiscal years 1998, 1999, 2000, and 2001.''.

SEC. 202. CHAIRPERSON.

    Section 202(b) of the Stewart B. McKinney Homeless Assistance Act 
(42 U.S.C. 11312(b) is amended to read as follows:
    ``(b) Chairperson and Vice Chairperson.--
            ``(1) Chairperson.--The Council shall elect an Chairperson 
        from among its members, who shall have a term of 2 years. A 
        member of the Council by reason of any of paragraphs (1) 
        through (16) of subsection (a) who serves as Chairperson for a 
        term may not be elected to serve as Chairperson for the 
        succeeding term. The preceding sentence shall not apply to any 
        member serving as Chairperson on the date of the enactment of 
        the Stewart B. McKinney Homeless Assistance Amendments Act of 
        1996.
            ``(2) Vice chairperson.--The Vice Chairperson of the 
        Council shall have a term of 2 years and shall be--
                    ``(A) the Secretary of Housing and Urban 
                Development, if such Secretary is not elected as the 
                Chairperson of the Council; or
                    ``(B) elected by the Council from among its 
                members, if the Secretary of Housing and Urban 
                Development is elected as the Chairperson of the 
                Council.''.

SEC. 203. EXTENSION.

    Section 209 of the Stewart B. McKinney Homeless Assistance Act (42 
U.S.C. 11319) is amended by striking ``October 1, 1994'' and inserting 
``October 1, 2001''.

TITLE III--FEDERAL EMERGENCY MANAGEMENT AGENCY FOOD AND SHELTER PROGRAM

SEC. 301. AUTHORIZATION OF APPROPRIATIONS.

    Section 322 of the Stewart B. McKinney Homeless Assistance Act (42 
U.S.C. 11352) is amended to read as follows:

``SEC. 322. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out this title 
$130,000,000 for fiscal year 1997 and such sums as may be necessary for 
each of fiscal years 1998, 1999, 2000, and 2001.''.

                      TITLE IV--HOUSING ASSISTANCE

SEC. 401. SHORT TITLE.

    This title may be cited as the ``Stewart B. McKinney Homeless 
Housing Assistance Amendments Act of 1996''.

 Subtitle A--Reorganization of Certain McKinney Act Housing Provisions

SEC. 411. FLEXIBLE GRANT PROGRAM.

    Title IV of the Stewart B. McKinney Homeless Assistance Act (42 
U.S.C. 11361 et seq.) is amended--
            (1) by striking subtitles A, B, C, D, and F;
            (2) by striking the headings for subtitles E and G;
            (3) by redesignating sections 441 (as amended by the 
        preceding provisions of this Act), 491, and 592 (as added by 
        section 1414 of the Housing and Community Development Act of 
        1992) as sections 451, 453, and 454, respectively;
            (4) by striking sections 442 and 443; and
            (5) by inserting after the heading for the title the 
        following:

                  ``Subtitle A--Flexible Grant Program

                    ``CHAPTER 1--GENERAL PROVISIONS

``SEC. 401. PURPOSES.

    ``The purposes of this subtitle are to--
            ``(1) expand and reorganize the Federal commitment to 
        alleviate homelessness by providing States, Indian tribes, and 
        localities with the resources to more efficiently and 
        effectively design a comprehensive system to address the 
        shelter, service, and permanent housing needs of homeless 
        individuals and families in the United States;
            ``(2) help very low-income families avoid becoming 
        homeless;
            ``(3) meet the emergency shelter needs of homeless persons 
        and families;
            ``(4) provide transitional or specialized permanent housing 
        to facilitate the movement of homeless persons and families to 
        independent living;
            ``(5) provide supportive services to help homeless persons 
        and families lead independent and dignified lives;
            ``(6) encourage the cooperation and participation of the 
        States and units of general local government, together with 
        private nonprofit organizations, in planning and implementing 
        comprehensive homeless assistance programs;
            ``(7) reduce the costs to States, units of general local 
        government, and private nonprofit organizations in applying for 
        and using Federal housing assistance for families and persons 
        who are homeless; and
            ``(8) begin meeting the needs of most of the Nation's 
        homeless population through the existing Federal programs 
        providing basic assistance for low-income families and persons.

``SEC. 402. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated--
            ``(1) $855,000,000 for fiscal year 1997 for grants in 
        accordance with section 412(b) of the Stewart B. McKinney 
        Homeless Assistance Amendments Act of 1996; and
            ``(2) such sums as may be necessary for each of fiscal 
        years 1998, 1999, 2000, and 2001 for grants under this 
        subtitle.
Any amounts appropriated pursuant to this section shall remain 
available until expended.

``SEC. 403. DEFINITIONS.

    ``For purposes of this subtitle, the following definitions shall 
apply:
            ``(1) The term `allocation unit of general local 
        government' means a metropolitan city and an urban county.
            ``(2) The term `applicant' means an eligible grantee that 
        submits an application under section 408 for a grant under this 
        subtitle.
            ``(3) The term `disability' means--
                    ``(A) a disability as defined in section 223 of the 
                Social Security Act;
                    ``(B) to be determined to have, pursuant to 
                regulations issued by the Secretary, a physical, 
                mental, or emotional impairment which (i) is expected 
                to be a long-continued and indefinite duration, (ii) 
                substantially impedes an individual's ability to live 
                independently, and (iii) of such a nature that such 
                ability could be improved 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 eligibility 
        under subparagraphs (A) through (C) or the provisions referred 
        to in subparagraphs (A) through (C).
            ``(4) The term `eligible grantee' means--
                    ``(A) an allocation unit of general local 
                government, Indian Tribe, or insular area, or a 
                consortium of such entities, that elects to administer 
                a grant under section 410(a)(1);
                    ``(B) a public agency or a private nonprofit 
                organization (or a consortium of such organizations) 
                designated by the Secretary under section 410(a)(3) to 
                administer grant amounts for an allocation unit of 
                general local government, Indian tribe, or insular 
                area;
                    ``(C) an entity eligible to receive grant amounts 
                from the Secretary under section 410(a)(4);
                    ``(D) a State that elects under section 
                410(b)(1)(A) to administer a grant;
                    ``(E) a unit of general local government selected 
                under section 410(b)(5) to receive grant amounts from 
                the Secretary; and
                    ``(F) a private nonprofit organization selected 
                under section 410(b)(4) to receive grant amounts from 
                the Secretary.
            ``(5) The term `families' has the same meaning given the 
        term under section 3(b) of the United States Housing Act of 
        1937.
            ``(6) The term `grantee' means--
                    ``(A) an allocation unit of general local 
                government, Indian tribe, or insular area, or a 
                consortium of such entities, that receives a grant 
                under this subtitle and administers the grant under 
                section 410(a)(1);
                    ``(B) an allocation unit of general local 
                government, Indian tribe, or insular area that receives 
                a grant under this subtitle and designates a public 
                agency or private nonprofit organization (or a 
                consortium of such organizations) to administer grant 
                amounts for the jurisdiction under section 410(a)(2);
                    ``(C) a public agency or a private nonprofit 
                organization (or a consortium or such organizations) 
                designated by the Secretary under section 410(a)(3) to 
                administer grant amounts for an allocation unit of 
                general local government, Indian tribe, or insular 
                area, and that receives grant amounts under this 
                subtitle;
                    ``(D) an entity that receives grant amounts from 
                the Secretary under section 410(a)(4);
                    ``(E) a State that receives grant amounts under 
                this subtitle and administers such amounts under 
                section 410(b)(1)(A);
                    ``(F) a unit of general local government that 
                receives grant amounts from the Secretary under section 
                410(b)(5); and
                    ``(G) a private nonprofit organization that 
                receives grant amounts from the Secretary under section 
                410(b)(4).
            ``(7) The term `homeless family' means a group of one or 
        more related individuals who are homeless individuals.
            ``(8) The term `Indian tribe' means any Indian tribe, band, 
        group, and nation, including Alaska Indians, Aleuts, and 
        Eskimos, and any Alaskan Native Village, of the United States, 
        which is considered an eligible recipient under the Indian 
        Self-Determination and Education Assistance Act or was 
        considered an eligible recipient under chapter 67 of title 31, 
        United States Code, before the repeal of such chapter.
            ``(9) The term `insular area' means the Virgin Islands, 
        Guam, American Samoa, and the Commonwealth of the Northern 
        Mariana Islands.
            ``(10) The term `low-demand services and referrals' means 
        the provision of health care, mental health, substance abuse, 
        and other supportive services and referrals for services in a 
        noncoercive manner, which may include medication management, 
        education, counseling, job training, and assistance in 
        obtaining entitlement benefits and in obtaining other 
        supportive service including mental health treatment and 
        substance abuse treatment.
            ``(11) The term `metropolitan city' has the meaning given 
        the term in section 102(a) of the Housing and Community 
        Development Act of 1974.
            ``(12) The term `operating costs' means expenses of 
        operating any housing assisted under this subtitle with respect 
        to--
                    ``(A) the administration, maintenance, repair, and 
                security of such housing;
                    ``(B) utilities, fuels, furnishings, and equipment 
                for such housing; and
                    ``(C) the conducting of the assessments of and the 
                provision of supportive services to the residents of 
                such housing.
            ``(13) The term `outpatient health services' means 
        outpatient health care, outpatient mental health services, 
        outpatient substance abuse services, case management services 
        and child immunization.
            ``(14) The term `private nonprofit organization' means an 
        organization--
                    ``(A) no part of the net earnings of which inures 
                to the benefit of any member, founder, contributor, or 
                individual;
                    ``(B) that has a voluntary board;
                    ``(C) that has an accounting system or has 
                designated a fiscal agent in accordance with 
                requirements established by the Secretary; and
                    ``(D) that practices nondiscrimination in the 
                provision of assistance.
            ``(15) The term `project' means a structure or a portion of 
        a structure that is acquired or rehabilitated with assistance 
        provided under this subtitle or with respect to which the 
Secretary provides technical assistance or annual payments for 
operation costs.
            ``(16) The term `project sponsor' means an entity that--
                    ``(A) provides housing or assistance for homeless 
                individuals or families by carrying out eligible 
                activities under chapter 2 that are assisted under this 
                subtitle; and
                    ``(B) meets such minimum standards as the Secretary 
                considers appropriate.
            ``(17) The term `recipient' means a grantee (other than a 
        State distributing grant amounts to State recipients) and a 
        State recipient.
            ``(18) The term `Secretary' means the Secretary of Housing 
        and Urban Development.
            ``(19) The term `State' means a State of the United States 
        and the Commonwealth of Puerto Rico, or any agency or 
        instrumentality thereof that is established pursuant to 
        legislation and designated by the chief executive to act on 
        behalf of the jurisdiction with regard to provisions of this 
        subtitle.
            ``(20) The term `State recipient' means--
                    ``(A) a unit of general local government within a 
                State (other than an allocation unit of general local 
                government) that receives grant amounts from the State 
                under section 410(b)(3); and
                    ``(B) a private nonprofit organization that 
                receives grant amounts from a State under section 
                410(b)(4).
            ``(21)(A) The term `supportive services' means assistance 
        that--
                    ``(i) addresses the special needs of homeless 
                persons, such as deinstitutionalized persons, families 
                with children, persons with mental disabilities, other 
                persons with disabilities, the elderly, and veterans 
                intended to be served by a project; and
                    ``(ii) assists in accomplishing the purposes of the 
                different types of housing for the homeless eligible 
                for assistance under this subtitle.
            ``(B) Such term includes--
                    ``(i) food services, child care, substance abuse 
                treatment, assistance in obtaining permanent housing, 
                outpatient health services, employment counseling, 
                nutritional counseling, security arrangements for the 
                protection of residents of facilities to assist the 
                homeless, and such other services essential for 
                maintaining or moving toward independent living as the 
                Secretary determines to be appropriate; and
                    ``(ii) assistance to homeless persons in obtaining 
                other Federal, State, and local assistance available 
                for such individuals, including public assistance 
                benefits, mental health benefits, employment 
                counseling, and medical assistance.
            ``(C) Such term does not include the provision of major 
        medical equipment.
            ``(D) All or part of the supportive services may be 
        provided directly by the project sponsor or by arrangements 
        with other public or private service providers.
            ``(22) The term `unit of general local government' means--
                    ``(A) a city, town, township, county, parish, 
                village, or other general purpose political subdivision 
                of a State;
                    ``(B) the District of Columbia; and
                    ``(C) any agency or instrumentality thereof that is 
                established pursuant to legislation and designated by 
                the chief executive to act on behalf of the 
                jurisdiction with regard to provisions of this 
                subtitle.
        The term includes a consortium of geographically contiguous 
        units of general local government if the Secretary determines 
        that the consortium--
                    ``(i) has sufficient authority and administrative 
                capability to carry out the purposes of this subtitle 
                on behalf of its member jurisdictions; and
                    ``(ii) will, according to a written certification 
                by the State (or State, if the consortium includes 
                jurisdictions in more than one State), direct its 
                activities to alleviation of problems of homeless 
                individuals or families within the State or States.
            ``(23) The term `urban county' has the meaning given the 
        term in section 102(a) of the Housing and Community Development 
        Act of 1974.
            ``(24) The term `very low-income families' has the same 
        meaning given the term under section 104 of the Cranston-
        Gonzalez National Affordable Housing Act.

``SEC. 404. PROVISION OF GRANTS.

    ``(a) Authority and Use.--The Secretary may make grants to eligible 
grantees in accordance with the provisions of this subtitle. Grants 
under this subtitle may be used only--
            ``(1) to carry out activities under chapter 2 for assisting 
        homeless individuals and families that are conducted to provide 
        comprehensive homeless assistance required under section 405; 
        and
            ``(2) for administrative expenses, to the extent provided 
        in section 436.
    ``(b) General Rule for Award of Grants.--Except as provided in 
subsection (c), the Secretary shall make grants using amounts 
appropriated under section 402 in the manner provided in this subtitle.
    ``(c) Insufficient Appropriations.--
            ``(1) Trigger.--If the amounts appropriated pursuant to 
        section 402 for any fiscal year are less than 50 percent of the 
        amount authorized to be appropriated under such section for the 
        year, the Secretary shall use such amounts to make grants under 
        the provisions of this title as in effect immediately before 
        the enactment of the Stewart B. McKinney Homeless Assistance 
        Amendments Act of 1996.
            ``(2) Grant requirements.--The Secretary shall establish 
        requirements for grants made under this subsection, as the 
        Secretary considers appropriate, that are additional or 
        alternative to the requirements under the provisions of this 
        title as in effect immediately before the enactment of the 
        Stewart B. McKinney Homeless Assistance Amendments Act of 1996.
            ``(3) Grant criteria.--The criteria for awarding grants 
        under this subsection shall include--
                    ``(A) the extent to which there is a need for 
                assistance for homeless individuals and families in the 
                jurisdiction in which the grant will be used;
                    ``(B) the extent to which the activities proposed 
                to be carried out with grant amounts will further the 
                provision of comprehensive homeless assistance required 
                under section 405(b)(1);
                    ``(C) the extent to which private nonprofit 
                organizations providing assistance to homeless 
                individuals and families in the jurisdiction have been, 
                and will be, included in planning for the receipt of 
                assistance under this subtitle, the development of the 
                application under section 408, and the execution of the 
                proposed activities; and
                    ``(D) such other criteria as the Secretary 
                considers appropriate to further the purposes of this 
                subsection and this subtitle.
            ``(4) Set aside for indian tribes and insular areas.--In 
        making grants under this subsection, the Secretary may set 
        aside such amounts as the Secretary considers appropriate for 
        grants for Indian tribes and insular areas.

``SEC. 405. COMPREHENSIVE HOMELESS ASSISTANCE.

    ``(a) Establishment and Maintenance.--Each applicant shall, based 
on information provided in the current comprehensive affordable housing 
strategy for the appropriate jurisdiction under section 105 of the 
Cranston-Gonzalez National Affordable Housing Act or such other plan as 
the Secretary may prescribe, use assistance provided under this 
subtitle in a manner that ensures that comprehensive homeless 
assistance is established and maintained within the jurisdiction of the 
applicant.
    ``(b) Requirements.--For purposes of this subtitle, comprehensive 
homeless assistance required under this section shall include--
            ``(1) providing a system of outreach and assessment for--
                    ``(A) determining whether an individual or family 
                is homeless, needs assistance to avoid being homeless, 
                or needs other assistance; and
                    ``(B) ensuring that individuals and families so 
                identified receive appropriate housing and supportive 
                services;
            ``(2) providing assistance to the extent necessary to avoid 
        eviction (or foreclosure) and termination of utility services 
        of low- and very low-income families to prevent such families 
        from becoming homeless;
            ``(3) making emergency shelters with appropriate supportive 
        services available to the extent necessary to ensure that 
        homeless individuals and families for which such housing is 
        appropriate receive adequate shelter, including during any 
        period in which an assessment referred to in paragraph (1) is 
        performed for such an individual or family;
            ``(4) making transitional housing with appropriate 
        supportive services available to the extent necessary to ensure 
        that homeless individuals and families for which such housing 
        is appropriate are prepared for increased responsibility and 
        permanent housing, or permanent supportive housing, after the 
        transition period;
            ``(5) making permanent supportive housing, available to the 
        extent necessary to meet the long-term housing needs of all 
        homeless individuals and families;
            ``(6) providing assistance to meet specific needs of 
        various subpopulations of the homeless, especially the unique 
        needs of homeless veterans; and
            ``(7) providing for coordination of assistance provided 
        under this subtitle and assistance provided under other 
        Federal, State, and local programs that may be used to assist 
        homeless individuals and families, including--
                    ``(A) assistance under the programs for public and 
                Indian housing and section 8 rental assistance under 
                the United States Housing Act of 1937 (including the 
                program for section 8 assistance for moderate 
                rehabilitation under section 451 of this Act and the 
                shelter plus care program for such assistance under 
                section 452 of this Act), the HOME Investment 
                Partnerships Act, the community development block grant 
                program under title I of the Housing and Community 
                Development Act of 1974, the program for supportive 
                housing for the elderly under section 202 of the 
                Housing Act of 1959, the program for supportive housing 
                for persons with disabilities under section 811 of the 
                Cranston-Gonzalez National Affordable Housing Act, and 
                the program for housing opportunities for persons with 
                AIDS under subtitle D of title VIII of the Cranston-
                Gonzalez National Affordable Housing Act;
                    ``(B) programs administered by the Director of the 
                Federal Emergency Management Agency;
                    ``(C) programs administered by the Secretary of 
                Labor, including programs for employment and training;
                    ``(D) programs administered by the Secretary of 
                Health and Human Services, including programs for 
                health care, mental health care, social services, 
                income support services, runaway youth, and unfit 
                transient facilities;
                    ``(E) programs administered by the Secretary of 
                Veterans Affairs (including programs for compensation 
                benefits, health care, and mental health care, and 
                other services and programs) that are specifically 
                designed to assist homeless veterans;
                    ``(F) programs administered by the Secretary of 
                Education, including programs for adult education and 
                education for homeless children and youth;
                    ``(G) programs administered by the Corporation for 
                National and Community Service, including programs for 
                national service; and
                    ``(H) such other assistance as the Secretary shall 
                prescribe upon consultation with the Interagency 
                Council on the Homeless.

``SEC. 406. MATCHING REQUIREMENTS.

    ``(a) In General.--Except as provided in subsection (c), each 
recipient shall supplement the amount of grants provided under this 
subtitle to the recipient with an amount of funds from non-Federal 
sources equal to 50 percent of the Federal grant, which shall include 
funds from project sponsors receiving assistance from the recipient.
    ``(b) Supplemental Funds.--Supplemental funds may include (1) the 
value of any donated material or building, the value of any lease on a 
building, (2) any salary paid to staff to carry out the program of a 
project sponsor, (3) the value of the time and services contributed by 
volunteers to carry out the program of project sponsor at a rate 
determined by the Secretary, and (4) the proceeds from bond financing 
validly issued by a State or unit of general local government, agency, 
or instrumentality thereof, and repayable with revenues derived from a 
project assisted under this subtitle, except that not more than 25 
percent of the contribution required may be derived from the proceeds 
of such bond financings. Any State or local government funds used 
independently from the program under this title, or designated for such 
use, to assist the homeless by carrying out activities that would be 
eligible for assistance under this subtitle shall be considered 
supplemental funds under this section.
    ``(c) States.--
            ``In the case of a State administering grant amounts under 
        section 410(b)(1)(A), in each fiscal year, the State shall 
        supplement the amount of grants provided under this subtitle 
        with an amount of funds from sources other than this subtitle 
        equal to 50 percent of the amount received under this subtitle. 
        Each grantee that is a State shall obtain any supplemental 
        amounts from State recipients receiving amounts under the 
        grant.
    ``(d) Prohibition of Substitution of Funds.--Assistance provided 
under this subtitle may not be used to replace other public funds 
previously used, or designated for use, to assist persons who are 
homeless.
    ``(e) Certification.--Each recipient shall certify, to the 
satisfaction of the Secretary, its compliance with the provisions of 
this section, which shall describe the sources and amounts of 
supplemental funds provided pursuant to this section.

``SEC. 407. RESPONSIBILITIES OF RECIPIENTS AND PROJECT SPONSORS.

    ``(a) Use of Assistance Through Private Nonprofit Organizations.--
Each recipient shall make available more than 50 percent of the grant 
amounts it receives for any fiscal year to project sponsors that are 
private nonprofit organizations to carry out eligible activities under 
chapter 2, except that the Secretary may waive the applicability of 
this requirement if the recipient demonstrates to the Secretary that 
the requirement interferes with the ability of the recipient to provide 
assistance under this subtitle because of a paucity of qualified 
private nonprofit organizations in the jurisdiction of the recipient.
    ``(b) Housing Quality.--Each recipient shall ensure that housing 
assisted with grant amounts provided under this subtitle is decent, 
safe, and sanitary and, when appropriate, complies with all applicable 
State and local housing codes, building codes, and licensing 
requirements in the jurisdiction in which the housing is located.
    ``(c) Prevention of Undue Benefit.--The Secretary may prescribe 
such terms and conditions as the Secretary considers necessary to 
prevent project sponsors from unduly benefiting from the sale or other 
disposition of projects other than a sale or other disposition 
resulting in the use of the project for the direct benefit of very low-
income families.
    ``(d) Confidentiality.--Each recipient shall develop and implement 
procedures to ensure the confidentiality of records pertaining to any 
individual provided family violence prevention or treatment services 
under any project and to ensure that the address or location or any 
family violence shelter project assisted with grant amounts under this 
subtitle will, except with written authorization of the person or 
person responsible for the operation of such shelter, not be made 
public.
    ``(e) Employment of Homeless Individuals.--To the maximum extent 
practicable, the Secretary shall ensure that recipients involve, 
through employment, volunteer services, or otherwise, homeless 
individuals and families in constructing, renovating, maintaining, and 
operating facilities assisted with grant amounts under this subtitle, 
in providing services so assisted, and in providing services for 
occupants of facilities so assisted.
    ``(f) Participation of Homeless Individuals.--The Secretary shall, 
by regulation, provide that each recipient shall require each project 
sponsor receiving assistance under this subtitle from the recipient to 
provide for the participation of not less than one homeless individual 
or formerly homeless individual on the board of directors or other 
equivalent policy making entity of the project sponsor, to the extent 
that such entity considers and makes policies and decision regarding 
any project, facility, services, or other activities assisted with 
grant amounts under this subtitle. A recipient may grant waivers to 
project sponsors unable to meet the requirement under the preceding 
sentence if the project sponsor agrees to otherwise consult with 
homeless or formerly homeless individuals in considering and making 
such policies and decisions.

``SEC. 408. APPLICATION.

    ``(a) Requirement.--Except as otherwise provided in section 404(c), 
the Secretary may make a grant under this subtitle only to an eligible 
grantee that submits an application under this section that is approved 
by the Secretary.
    ``(b) Form and Procedure.--Applications shall be submitted in such 
form and in accordance with such procedures as the Secretary shall, by 
regulation, establish.
    ``(c) Content.--An application under this section shall--
            ``(1) include a detailed description, based on information 
        provided in the current comprehensive housing affordability 
        strategy under section 105 of the Cranston-Gonzalez National 
        Affordable Housing Act for the appropriate jurisdiction or such 
        other plan as the Secretary may prescribe, of--
                    ``(A) the existing population of homeless 
                individuals and families for the jurisdiction of the 
                applicant; and
                    ``(B) the existing facilities and services designed 
                to assist such population;
            ``(2) include a detailed description of the comprehensive 
        homeless assistance under section 405 to be established and 
        maintained within the jurisdiction of the applicant;
            ``(3) provide an assessment of what is required to 
        establish and maintain the provision of comprehensive homeless 
        assistance required under section 405 for the jurisdiction of 
        the applicant;
            ``(4) set forth a multiyear strategy for establishing and 
        maintaining the provision of comprehensive homeless assistance 
        for the jurisdiction, as described pursuant to paragraph (2), 
        and include timetables, goals, and budget estimates for 
        accomplishing each element of the strategy;
            ``(5) set forth a 1-year action plan that identifies all 
        activities to be carried out with assistance under this 
        subtitle and demonstrates how such activities will further the 
        strategy set forth pursuant to paragraph (4);
            ``(6) except in the case of an application by a State that 
        elects under section 410(b)(1)(A) to administer grants under 
        this subtitle, describe the means the applicant will use to 
        distribute grant amounts to project sponsors and whether such 
        amounts will be awarded on a competitive or noncompetitive 
        basis;
            ``(7) contain certifications or other such forms of proof 
        of commitments of financial and other resources from each 
        public agency or private nonprofit organization that has a role 
        in establishing and maintaining the provision of comprehensive 
        homeless assistance for the jurisdiction of the applicant, 
        required under section 405;
            ``(8) contain assurances satisfactory to the Secretary that 
        activities carried out under chapter 2 with grant amounts under 
        this subtitle will comply with the requirements of this 
        subtitle;
            ``(9) in the case of an application by a State that elects 
        to under section 410(b)(1)(A) administer grants under this 
        subtitle, describe the method of distribution of such amounts 
        to State recipients;
            ``(10) except with respect to an application by a State 
        that elects under section 410(b)(1)(A) to administer grants 
        under this subtitle, contain a certification from the public 
        official responsible for submitting the comprehensive housing 
        affordability strategy under section 105 of the Cranston-
        Gonzalez National Affordable Housing Act for the State or unit 
        of general local government within which a project is to be 
        located (or such other plan as the Secretary may require) that 
        the proposed project is consistent with the approved housing 
        strategy of such State or unit of general local government;
            ``(11) contain a certification that the applicant will 
        comply with the requirements of the Fair Housing Act, title VI 
        of the Civil Rights Act of 1964, section 504 of the 
        Rehabilitation Act of 1973, and the Age Discrimination Act of 
        1975, and will affirmatively 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 required 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 information 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 subtitle, 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 allocate 
                amounts under this paragraph using a formula 
                established by the Secretary that allocates amounts for 
                allocation units of general local government and 
                States, and for Indian tribes, in a manner that 
                provides that the percentage of the total amount 
                referred to in subparagraph (A) for any fiscal year 
                that is allocated for any State or allocation unit of 
                general local government, or for Indian tribes, is 
                equal to the percentage of the total amount available 
                for section 106 of the Housing and Community 
                Development Act of 1974 for the prior fiscal year that 
                was allocated for such State or allocation unit of 
                general local government, or for Indian tribes.
                    ``(C) Minimum amount.--If, in any fiscal year, 
                allocation under the provisions of subparagraphs (A) 
                and (B) would result in any allocation 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 preceding 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 appropriated 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 
                subparagraphs 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 allocation units of 
        general local government.--
                    ``(A) In general.--The amount allocated for a 
                fiscal year under paragraph (1) for an allocation 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 subtitle for a State or 
                for an allocation unit of general 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 
                jurisdiction has failed to comply fully with the 
                requirements under section 408 or 411 or that such 
                action is otherwise appropriate.
            ``(3) Minimum state allocation.--Notwithstanding 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 deducted 
        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 subsections (a) and (b) of section 410, or 
that become available as a result of actions under section 413(b), 
shall be added to amounts available for allocation under this section 
for the succeeding fiscal year.

``SEC. 410. ADMINISTRATION OF PROGRAM.

    ``(a) Grants to Allocation Units of General Local Government, 
Indian Tribes, and Insular Areas.--
            ``(1) In general.--Except as provided in paragraphs (2), 
        (3), and (4), an allocation unit of general local government, 
        Indian tribe, or insular area shall administer grant amounts 
        for any fiscal year received under section 409 by such 
        grantees.
            ``(2) Administration by designees of jurisdiction.--
                    ``(A) Authority to elect.--An allocation unit of 
                general local government, Indian tribe, or insular area 
                may elect for any fiscal year to designate a public 
                agency or a private nonprofit organization (or a 
                consortium of such organizations) to administer grant 
                amounts under section 409 for the jurisdiction.
                    ``(B) Election requirements.--The Secretary shall 
                prescribe the manner and time for making an election 
                under subparagraph (A), and shall establish criteria 
                for the approval of agencies and organizations 
                designated, which shall require such agencies and 
                organizations to demonstrate experience of the entity 
                in providing assistance to homeless individuals and 
                families in the jurisdiction.
                    ``(C) Direct provision of assistance.--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 secretary.--If an 
        allocation unit of general local government, Indian tribe, or 
        insular area, or (if appropriate) a public agency or private 
        nonprofit organization designated by the jurisdiction under 
        paragraph (2), does not receive a grant under section 409 for 
        any fiscal year because of failure to meet the application 
        requirements of section 408, the Secretary may designate an 
        agency or organization meeting the criteria established under 
        paragraph (2)(B) to receive the grant.
            ``(4) Administration by secretary.--If for any fiscal year 
        the Secretary determines that the grant amounts allocated under 
        section 409 for an allocation unit of general local government, 
        Indian tribe, 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 
        jurisdiction. The Secretary shall prescribe such procedures and 
        requirements as the Secretary considers appropriate for 
        administering grant amounts under this paragraph.
    ``(b) Grants to States.--
            ``(1) In general.--To receive an allocation under section 
        409, each State shall elect--
                    ``(A) to administer grant amounts received under 
                section 409, as provided in paragraphs (2) and (3); or
                    ``(B) to have the Secretary administer such grant 
                amounts for the State, as provided in paragraph (5).
        If a State elects to administer grant amounts under 
        subparagraph (A), the election shall be irrevocable.
            ``(2) State program.--A State administering grant amounts 
        as provided in paragraph (1)(A)--
                    ``(A) shall distribute the amounts remaining after 
                use in accordance with subparagraph (B) to State 
recipients for use under this subtitle;
                    ``(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 subparagraph 
                        in the case of any State homeless assistance 
                        program that is limited to providing 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 subparagraph (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 activities 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 general local government.
            ``(3) Distribution of amounts to state recipients.--
                    ``(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 nonprofit 
                        organizations providing assistance to homeless 
                        individuals and families in the jurisdiction, 
                        under which the State will administer the grant 
                        amounts for the jurisdiction.
                A recipient may choose to exercise such options at such 
                time and in accordance with such criteria as the 
                Secretary may prescribe.
                    ``(B) Direct provision of assistance.--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 recipients (or to agencies 
                or organizations designated under subparagraph (A)(ii), 
                as appropriate) on the basis of an application 
                containing such information as the State may prescribe. 
                Each application shall evidence an intent to establish 
                and maintain the provision of comprehensive homeless 
                assistance in the jurisdiction of the recipient, except 
                that the State may waive this requirement 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 assistance is 
                        not necessary, due to the nature and extent of 
                        homelessness in the jurisdiction.
                    ``(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 Secretary 
        or the State, as the Secretary may provide, may distribute the 
        amounts to private nonprofit organizations in the jurisdiction. 
        If the Secretary distributes 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 program.--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 requirements 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 private nonprofit organizations 
and other interested groups and entities, participate fully in 
developing and carrying out the program for providing assistance under 
this subtitle 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 planning 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 assistance 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 subsection 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 organization, or the State 
                or the Secretary, under subsections (a) and (b) of 
                section 410;
                    (B) developing the application under section 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 carrying 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 representing 
                homeless individuals and families;
                    ``(B) not less than one member representing 
                homeless advocates;
                    ``(C) not less than one member representing 
                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 representing the 
                business community;
                    ``(E) not less than one member representing labor;
                    ``(F) not less than one member who is a community 
                representative;
                    ``(G) not less than one member of the local board 
                established for the jurisdiction for purposes of 
                allocating amounts under the emergency food and shelter 
                program of the Federal Emergency Management Agency;
                    ``(H) not less than one member representing 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 paragraph (3)) shall be members of the board that represent 
        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 recipient 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 jurisdiction or other members 
        of the community may request the Secretary to review process 
        for constituting or operating the board to determine whether 
        the process is fair. If the Secretary finds that the process 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 conflicts 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 information 
                concerning the amount of assistance the jurisdiction 
                expects to receive and the range of activities that may 
                be undertaken with the assistance;
                    ``(B) publish the proposed application in a manner 
                that, in the determination of the Secretary, affords 
                affected citizens, public agencies, and other 
                interested parties a reasonable opportunity 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 subtitle during the preceding 
                5 years.
            ``(2) Notice and comment.--Before submitting 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 recipient 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 
        attached when an application, amendment to an application, or 
        performance report is submitted. The submitted application, 
        amendment, or report shall be made available to the public.
            ``(4) Authority of secretary.--The Secretary shall 
        establish procedures appropriate and practicable for providing 
        a fair hearing and timely resolution of citizen complaints 
        related to applications 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 prescribe 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 Secretary may 
        prescribe citizen participation requirements 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 recipients, as 
                provided in paragraph (3), (4), or (5) of section 
                410(b).
            ``(3) Inapplicable laws.--The Federal Advisory Committee 
        Act and section 12 of the Department of Housing and Urban 
        Development Act shall not apply with respect to the actions of 
        the Secretary 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, rehabilitated, or assisted under this 
subtitle shall be no more restrictive than the standards applicable to 
any other program administrated by the Secretary.
    ``(b) Environmental Protection.--The provisions of, and regulations 
and procedures applicable under, section 104(g) of the Housing and 
Community Development 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 General Accounting Office under such 
rules and regulations as may be prescribed by the Comptroller General 
of the United States. The representatives of the General Accounting 
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 sponsors 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 available 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 establishing and 
                maintaining the comprehensive homeless assistance 
                system in conformity with its application under this 
                subtitle;
                    ``(C) has carried out its activities and 
                certifications 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 recipients 
                in a timely manner and in conformance with the method 
                of distribution described in its application;
                    ``(B) has carried out its activities and 
                certifications 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 appropriate to 
                determine whether they have satisfied the applicable 
                performance criteria contained in paragraph (1).
The Secretary may make appropriate adjustments in the amount of grants 
in accordance with the Secretary's findings under this subsection. With 
respect to assistance made available for State recipients, the 
Secretary may adjust, 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 ACTIVITIES.

    ``(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 Discrimination Act of 
1975 or with respect to an otherwise qualified handicapped individual, 
as provided in section 504 of the Rehabilitation Act of 1973, shall 
also apply to any such program or activity.
    ``(b) Limitations.--
            ``(1) Indian tribes.--No grant may be made under this 
        subtitle to an Indian tribe unless the applicant provides 
        satisfactory assurances that its program will be conducted and 
        administered in conformity with title II of Public Law 90-284. 
        The Secretary may waive, in connection with grants to Indian 
        tribes, the provisions of subsection (a).
            ``(2) Hawaiian home lands.--The provisions of this subtitle 
        relating to discrimination on the basis of race shall not apply 
        to the provision of assistance under this subtitle to the 
        Hawaiian Home Lands.

``SEC. 415. CONSULTATION.

    ``In carrying out the provisions of this subtitle, including the 
issuance of regulations, the Secretary shall consult with other Federal 
agencies administering programs 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 (including 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 requirements 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 pertinent 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 activities. 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 1997, 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 
utility 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 mortgage delinquency or foreclosure) notices 
or notices of termination 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, utilities, 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 accommodations for homeless persons. An emergency 
shelter may include appropriate eating and cooking accommodations.
    ``(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 unless, within such 10-year 
        period, the need for maintaining 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 rehabilitation 
        (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 activities 
        described in paragraphs (2) and (3) of subsection (a), provide 
        services or shelter to homeless individuals and families at the 
        original site or structure 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 government; and
            ``(5) assist homeless persons in obtaining--
                    ``(A) appropriate supportive service, including 
                permanent housing, medical and mental health treatment, 
                counseling, supervision, and other services essential 
                for achieving independent living; and
                    ``(B) other Federal, State, local, and private 
                assistance available for homeless persons.
    ``(d) Minimum Standards of Habitability.--The Secretary shall 
prescribe such minimum standards of habitability 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 homeless 
persons and families. Grantees may establish standards 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.--Assistance may be 
        provided in the form of an advance in an amount not exceeding 
        cost of acquisition, substantial rehabilitation, or acquisition 
        and rehabilitation of an existing structure for use as 
        supportive housing. The repayment of any outstanding debt owed 
        on a loan made to purchase an existing structure 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 supportive 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 operating 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 operating 
        costs of such housing.
            ``(4) Technical assistance.--Technical assistance may be 
        provided in--
                    ``(A) establishing supportive housing in an 
                existing structure;
                    ``(B) operating supportive housing in existing 
                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 supportive 
                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 assistance program for the residents of 
        supportive housing, which shall include--
                    ``(A) employment of residents in the operation 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 supportive services provided 
        to homeless individuals. Any project sponsor, including program 
        recipients under title IV of this Act before the date of the 
        enactment of the Stewart B. McKinney Homeless Assistance 
        Amendments Act of 1996, 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 
                        operating 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 licensing 
        requirements in the jurisdiction in which the housing is 
        located;
            ``(2) the housing is--
                    ``(A) transitional housing;
                    ``(B) permanent housing for homeless persons with 
                disabilities; or
                    ``(C) a particularly innovative project for, or 
                alternative methods of, meeting the immediate and long-
                term needs of homeless individuals and families (or is 
                part of such a project); and
            ``(3) supportive services are provided in connection 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 Persons 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 dictate 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 facilitate 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 establish 
                for purposes of carrying out this program in an 
                effective and efficient manner.
            ``(2) Occupant charge.--Each homeless individual 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 appropriate for use as supportive housing or in projects containing 
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, rehabilitation, 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 program, in an 
        amount not exceeding 10 percent of the amounts made available 
        for activities under paragraphs (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 persons 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 assistance may be tenant-based, project-based, or 
sponsor-based.

``SEC. 436. ADMINISTRATIVE AND CAPACITY-BUILDING EXPENSES.

    ``(a) Availability of Grant Amounts.--A recipient may use grant 
amounts under this subtitle for the following expenses:
            ``(1) Administrative expenses.--During--
                    ``(A) the first year in which a recipient receives 
                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 referred 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 organizations.--For 
        building the capacity of private nonprofit organizations to 
        participate in the comprehensive homeless assistance system of 
        the recipient, 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 eligible 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, Indian Tribe, or insular area, that 
                designates a public agency or a private nonprofit 
                organization under section 410(a)(2);
                    ``(B) any State recipient that designates a public 
                agency or a private nonprofit organization 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 demonstrate 
        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 government and the 
        private sector (including nonprofit organizations, foundations, 
        and communities) and through a variety of activities, including 
        the coordination of efforts and the filling of gaps in 
        available services and resources; and
            ``(2) to obtain technical assistance in establishing a 
        program for providing homeless assistance in accordance with 
        the provisions of this subtitle, except 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 subsection (a)(1) only if--
            ``(1) the existing public and private systems for 
        homelessness prevention, outreach, assessment, shelter, 
        services, transitional services, transitional housing, and 
        permanent housing available within the jurisdiction of the 
        recipient would benefit from additional resources to achieve a 
        comprehensive approach to meeting the needs of individuals and 
        families 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 resources as necessary to 
        implement and sustain the program.

``SEC. 438. OTHER APPROVED ACTIVITIES.

    ``The Secretary, in cooperation with grantees, recipients, and 
other appropriate parties, shall develop additional 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, 1997, the Secretary of 
Housing and Urban Development (in this section referred to as the 
``Secretary'') shall publish final regulations to implement the 
amendments made by this subtitle. The final rule shall be published 
after notice and opportunity 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 1997, 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 accordance 
        with the provisions of subtitle B of title IV of the Stewart B. 
        McKinney Homeless Assistance Act (relating to emergency shelter 
        grants), as such provisions 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 subsection (a), the 
                Secretary shall distribute the amounts available for 
                fiscal year 1997 under subtitle A of title IV of the 
                Stewart B. McKinney 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. McKinney 
                Homeless Assistance Act, as such provisions existed 
                immediately before the enactment of this Act:
                            (i) Subtitle C (relating to supportive 
                        housing).
                            (ii) Subtitle D (relating to safe havens).
                            (iii) Subtitle F (relating to shelter plus 
                        care).
                    (B) Procedure.--For purposes of awarding assistance 
                under this paragraph, the Secretary may, as 
                appropriate--
                            (i) provide for use of a single 
                        application; 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 
        program for fiscal year 1996.
    (c) Technical Assistance.--Of any amounts appropriated to carry out 
section 2 of the HUD Demonstration Act of 1993 in fiscal year 1997, the 
Secretary may use not more than 10 percent for providing technical 
assistance 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 providing homeless assistance in 
accordance with the provisions of such subtitle A.

SEC. 413. REPORT ON SINGLE ROOM OCCUPANCY ASSISTANCE.

    Not later than July 1, 1997, the Secretary shall submit 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 
redesignated 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 Programs for the Homeless Under 
                              McKinney Act

SEC. 421. SECTION 8 ASSISTANCE FOR SINGLE ROOM OCCUPANCY 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 amended--
            (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 specifically provided for in the 
        comprehensive homeless assistance described in the application 
        under section 408 of the relevant eligible grantee and that 
        contains''; 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 amended to read as follows:
    ``(a) Increase in Budget Authority.--The budget 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 October 1, 1991) is authorized to be increased by $200,000,000 
on or after October 1, 1996, by such sums as may be necessary on or 
after October 1, 1997, by such sums as may be necessary on or after 
October 1, 1998, by such sums as may be necessary on or after October 
1, 1999, and by such sums as may be necessary on or after October 1, 
2000.''.

SEC. 422. SECTION 8 ASSISTANCE FOR SHELTER PLUS CARE SINGLE ROOM 
              OCCUPANCY DWELLINGS.

    Title IV of the Stewart B. McKinney Homeless Assistance Act (42 
U.S.C. 11361 et seq.) is amended by inserting 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 DWELLINGS.

    ``(a) Purpose.--The purpose of the program under this section is to 
provide assistance for the moderate rehabilitation 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 seriously 
mentally ill, have chronic problems with alcohol, drugs, or both, or 
have acquired immunodeficiency syndrome and related diseases) and the 
families of such persons.
    ``(b) Moderate Rehabilitation Assistance.--The Secretary may use 
amounts made available to carry out this section for moderate 
rehabilitation of single room occupancy housing described in section 
8(l) of the United States Housing Act of 1937 for occupancy by eligible 
persons 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 efficiency units.
    ``(c) Funding Limitations.--
            ``(1) Targeted populations.--To the maximum extent 
        practicable, the Secretary shall reserve not less than 50 
        percent of all amounts made available to carry out this section 
        for homeless individuals who are seriously mentally ill or have 
        chronic problems with alcohol, drugs, or both.
            ``(2) Geographical limitation.--Of the assistance 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 section 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 certification a 
        description of the sources and amounts of such supplemental 
        funds.
            ``(2) Determination of matching amounts.--In calculating 
        the amount of supplemental 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 contributed 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 recipient.
    ``(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 authority available 
        to the public housing agency for an aggregate period of 10 
        years, and require that any amendments increasing the authority 
        shall be available 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 housing 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 safety 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 submitted by an 
        applicant in such form and in accordance with such procedures 
        as the Secretary shall establish.
            ``(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 characteristics 
                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 qualifications of the provider 
                or providers;
                    ``(E) a description of the supportive services 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 assistance under this 
                section and a certification from the applicant that it 
                will fund the supportive services itself if the planned 
                resources do not become available for any reason;
                    ``(I) a certification by the public official 
                responsible 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 structures 
                that the recipient is proposing for assistance.
    ``(g) Selection Criteria.--The Secretary shall establish selection 
criteria for a national competition for assistance under this section 
which shall include--
            ``(1) the ability of the applicant to develop and operate 
        the proposed assisted housing and supportive 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 persons 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 program; and
            ``(9) such other factors as the Secretary specifies 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 consultation and participation of not less than one 
homeless individual or former homeless individual on the board of 
directors or other equivalent policymaking entity of the recipient, 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 Secretary 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 policies 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 accordance 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 supportive 
        services to the participants in the program;
            ``(4) to comply with such other terms and conditions as the 
        Secretary may establish for purposes of carrying out the 
        program in an effective and efficient manner; and
            ``(5) to the maximum extent practicable, to involve 
        homeless individuals and families, through employment volunteer 
        services, or otherwise, in constructing or rehabilitating 
        housing assisted under this section and in providing services 
        required under this section.
    ``(j) Housing Standards and Rent Reasonableness.--
            ``(1) Standards required.--The Secretary shall require 
        that--
                    ``(A) before any assistance may be provided to or 
                on behalf of a person, each unit assisted under this 
                section shall be inspected by the applicant directly or 
                by another entity, including the local public housing 
                agency, to determine 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 annual 
                inspections of each unit assisted under this section 
                during the term of the contract for such assistance.
            ``(2) Prohibition.--No assistance may be provided 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 recipient verifies the correction.
    ``(k) Tenant Rent.--Each tenant of a dwelling unit assisted under 
this section shall pay as rent an amount determined in accordance with 
the provisions of section 3(a)(1) of the United States Housing Act of 
1937.
    ``(l) Administrative Fees.--From amounts made available to carry 
out this section, the Secretary shall make amounts available to pay the 
entity administering the housing assistance an administrative fee in an 
amount determined appropriate by the Secretary for the costs of 
administering the housing assistance.
    ``(m) Occupancy.--
            ``(1) Occupancy agreement.--The occupancy agreement between 
        a tenant and an owner of a dwelling unit assisted under this 
        section shall be for at least 1 month.
            ``(2) Vacancy payments.--If an eligible person vacates a 
        dwelling unit assisted under this section before the expiration 
        of the occupancy agreement, no assistance payment may be made 
        with respect 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 program requirements, 
        the recipient may terminate assistance 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 individuals 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 syndrome and 
        related diseases' has the meaning given such term in section 
        853 of the Cranston-Gonzalez National Affordable Housing Act.
            ``(2) The term `applicant' means a State, unit of general 
        local government, Indian tribe, or public housing agency.
            ``(3) The term `eligible person' means a homeless person 
        with disabilities (primarily persons who are seriously mentally 
        ill, have chronic problems with alcohol, drugs, or both, or 
        have acquired immunodeficiency syndrome and related diseases) 
        and the family of such a person.
            ``(4) The term `Indian tribe' has the meaning given such 
        term in section 102 of the Housing and Community Development 
        Act of 1974.
            ``(5) The term `nonprofit organization' has the meaning 
        given such term by section 104 of the Cranston-Gonzalez 
        National Affordable Housing Act, and includes community mental 
        health centers established as public nonprofit organizations.
            ``(6) The term `person with disabilities' has the meaning 
        given such term in section 811 of the Cranston-Gonzalez 
        National Affordable Housing Act.
            ``(7) The term `public housing agency' has the meaning 
        given such term in section 3(b) of the United States Housing 
        Act of 1937.
            ``(8) The term `recipient' means an applicant approved for 
        participation in the program to provide assistance under this 
        section.
            ``(9) The term `Secretary' means the Secretary of Housing 
        and Urban Development.
            ``(10) The term `seriously mentally ill' means having a 
        severe and persistent mental or emotional impairment that 
        seriously limits a person's ability to live independently.
            ``(11) The term `State' means each of the several States, 
        the District of Columbia, the Commonwealth of Puerto Rico, the 
        Commonwealth of the Northern Mariana Islands, the Virgin 
        Islands, Guam, American Samoa, and any other territory or 
        possession of the United States.
            ``(12) The term `supportive services' means assistance that 
        the Secretary determines (A) addresses the special needs of 
        eligible persons; and (B) provides 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 
        services, counseling, supervision, education, job training, and 
        other services essential for achieving and maintaining 
        independent living. Inpatient acute hospital care shall not 
        qualify as a supportive service.
            ``(13) The term `unit of general local government' has the 
        meaning given such term in section 102 of the Housing and 
        Community Development Act of 1974.
    ``(p) Authorization of Appropriations.--For purposes of providing 
assistance under this section, there are authorized to be appropriated 
$75,000,000 for fiscal year 1997 and such sums as may be necessary for 
each of fiscal years 1998, 1999, 2000, and 2001.''.

SEC. 423. RURAL HOMELESSNESS GRANT PROGRAM.

    (a) In General.--Section 453 of the Stewart B. McKinney Homeless 
Assistance Act, as so redesignated by section 411(3) of this Act, is 
amended--
            (1) in subsection (a), by striking ``Secretary of Housing 
        and Urban Development'' and inserting ``Secretary of 
        Agriculture''; and
            (2) in subsection (k), by striking paragraph (3) and 
        inserting the following new paragraph:
            ``(3) The term `Secretary' means the Secretary of 
        Agriculture.''.
    (b) Authorization of Appropriations.--Section 453(l)(1) of the 
Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11408(l)(1)), as 
so redesignated by section 411(3) of this Act, is amended to read as 
follows:
            ``(1) In general.--There are authorized to be appropriated 
        to carry out this section $30,000,000 for fiscal year 1997 and 
        such sums as may be necessary for each of fiscal years 1998, 
        1999, 2000, and 2001.''.

SEC. 424. CLERICAL AMENDMENT.

    The table of contents in section 101(b) of the Stewart B. McKinney 
Homeless Assistance Act is amended by striking the items relating to 
title IV and inserting the following new items:

                     ``TITLE IV--HOUSING ASSISTANCE

                  ``Subtitle A--Flexible Grant Program

                    ``Chapter 1--General Provisions

        ``Sec. 401. Purposes.
        ``Sec. 402. Authorization of appropriations.
        ``Sec. 403. Definitions.
        ``Sec. 404. Provision of grants.
        ``Sec. 405. Comprehensive homeless assistance.
        ``Sec. 406. Matching requirements.
        ``Sec. 407. Responsibilities of grantees and project sponsors.
        ``Sec. 408. Application.
        ``Sec. 409. Allocation and distribution of funds.
        ``Sec. 410. Administration of program.
        ``Sec. 411. Citizen participation.
        ``Sec. 412. Applicability of other provisions.
        ``Sec. 413. Reports, reviews, and audits.
        ``Sec. 414. Nondiscrimination in programs and activities.
        ``Sec. 415. Consultation.
        ``Sec. 416. Records, reports, and audits.
        ``Sec. 417. Reports to Congress.
                    ``Chapter 2--Eligible Activities

        ``Sec. 431. Homelessness prevention.
        ``Sec. 432. Emergency shelter.
        ``Sec. 433. Supportive housing for the homeless.
        ``Sec. 434. Safe havens for homeless individuals.
        ``Sec. 435. Shelter plus care.
        ``Sec. 436. Administrative and capacity-building expenses.
        ``Sec. 437. Innovative homeless initiatives.
        ``Sec. 438. Other approved activities.
   ``Subtitle B--Other Permanent Housing Assistance Programs for the 
                                Homeless

        ``Sec. 451. Section 8 assistance for single room occupancy 
                            dwellings.
        ``Sec. 452. Section 8 assistance for shelter plus care single 
                            room occupancy dwellings.
        ``Sec. 453. Rural homelessness grant program.
        ``Sec. 454. Use of FMHA inventory for transitional housing for 
                            homeless persons and for turnkey 
                            housing.''.

         Subtitle C--Miscellaneous Homeless Housing Provisions

SEC. 431. STRATEGY TO ELIMINATE UNFIT TRANSIENT FACILITIES.

    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 government 
        shall eliminate the use of unfit transient facilities as 
        housing for homeless families with children not later than July 
        1, 1997, in the manner provided under the strategy.''.
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