[Congressional Bills 104th Congress]
[From the U.S. Government Publishing Office]
[H.R. 3964 Introduced in House (IH)]







104th CONGRESS
  2d Session
                                H. R. 3964

To amend title IV of the Stewart B. McKinney Homeless Assistance Act to 
    consolidate the Federal programs for housing assistance for the 
   homeless into a block grant program that ensures that States and 
   communities are provided sufficient flexibility to use assistance 
                          amounts effectively.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 2, 1996

Mr. Lazio of New York introduced the following bill; which was referred 
           to the Committee on Banking and Financial Services

_______________________________________________________________________

                                 A BILL


 
To amend title IV of the Stewart B. McKinney Homeless Assistance Act to 
    consolidate the Federal programs for housing assistance for the 
   homeless into a block grant program that ensures that States and 
   communities are provided sufficient flexibility to use assistance 
                          amounts effectively.

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

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Homeless Housing Programs 
Consolidation and Flexibility Act''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds that--
            (1) the United States faces a crisis of individuals and 
        families who lack basic affordable housing and appropriate 
        shelter;
            (2) assistance from the Federal Government is an important 
        factor in the success of efforts by State and local governments 
        and the private sector to address the problem of homelessness 
        in a comprehensive manner;
            (3) there are a multitude of Federal Government programs to 
        assist the homeless, including programs for elderly persons, 
        persons with disabilities, Native Americans, and veterans;
            (4) many of the Federal programs for the homeless have 
        overlapping objectives, resulting in multiple sources of 
        Federal funding for the same or similar purposes;
            (5) while the results of Federal programs to assist the 
        homeless generally have been positive, it is clear that there 
        is a need for consolidation and simplification of such programs 
        to better support local efforts;
            (6) effective homelessness treatment should provide a range 
        of housing options (including transitional and permanent 
        housing) and, while not all homeless individuals and families 
        attain self-sufficiency and independence by utilizing 
        transitional housing and then permanent housing, in many cases 
        such individuals and families are best able to reenter society 
        directly through permanent supportive housing;
            (7) supportive housing activities support homeless persons 
        in an environment that can meet their short-term or long-term 
        needs and prepare them to reenter society as appropriate;
            (8) homelessness should be treated as part of a symptom of 
        many neighborhood and community problems, whose remedies 
        require a holistic approach integrating all available 
        resources;
            (9) there are many private sector entities, particularly 
        nonprofit organizations, that have successfully operated 
        homeless programs;
            (10) government restrictions and regulations may discourage 
        and impede innovative approaches to homelessness, such as 
        coordination of the various types of assistance that are 
        required by homeless persons; and
            (11) the Federal Government has a responsibility to 
        establish partnerships with State and local governments and the 
        private sector to address comprehensively the problems of 
        homelessness.
    (b) Purpose.--It is the purpose of this Act--
            (1) to consolidate the existing housing programs for 
        homeless persons under title IV of the Stewart B. McKinney 
        Homeless Assistance Act into a single block grant program for 
        housing assistance for the homeless;
            (2) to allow flexibility and creativity in rethinking 
        solutions to homelessness, including alternative housing 
        strategies and a competitive and much improved service sector; 
        and
            (3) to provide Federal assistance to reduce homelessness on 
        a basis that requires recipients of such assistance to 
        supplement the federally provided amounts and thereby guarantee 
        the provision of a certain level of housing and complimentary 
        services necessary to meet the needs of the homeless 
        population.

SEC. 3. GENERAL PROVISIONS.

    Title I of the Stewart B. McKinney Homeless Assistance Act (42 
U.S.C. 11301 et seq.) is amended--
            (1) by striking section 102;
            (2) in section 103--
                    (A) in subsection (a), by striking ``the term 
                `homeless' or `homeless individual or homeless person' 
                includes'' and inserting ``the terms `homeless', 
                `homeless individual' and `homeless person' include''; 
                and
                    (B) in subsection (c), by striking ``the term 
                `homeless' or `homeless individual' does not include'' 
                and inserting ``the terms `homeless', `homeless 
                individual' and `homeless person' do not include''; and
            (3) by redesignating sections 103, 104, and 105 as sections 
        102, 103, and 104, respectively.

SEC. 4. RENTAL ASSISTANCE AND FLEXIBLE HOMELESS ASSISTANCE PROGRAM.

    (a) In General.--Title IV of the Stewart B. McKinney Homeless 
Assistance Act (42 U.S.C. 11361 et seq.) is amended to read as follows:

 ``TITLE IV--BLOCK GRANTS FOR RENTAL ASSISTANCE AND FLEXIBLE HOMELESS 
                           ASSISTANCE GRANTS

                    ``Subtitle A--General Provisions

``SEC. 401. PURPOSE.

    ``The purpose of the program under this title is to provide 
assistance for rental housing for homeless persons and promote the 
development of various housing assistance activities for homeless 
persons to enable homeless persons to live as independently as 
possible, including assistance in the form of supportive housing, 
emergency shelters, supportive services, and activities to prevent 
homelessness.

``SEC. 402. GRANT AUTHORITY.

    ``(a) In General.--The Secretary may make grants as provided under 
this title to eligible grantees for States, metropolitan cities, urban 
counties, and the insular areas for carrying out eligible activities 
under subtitles B and C.
    ``(b) Grant Amounts.--Except as otherwise provided under this 
title, amounts for a fiscal year allocated under section 406 shall be 
used as follows:
            ``(1) Insular areas.--Any amounts for the fiscal year 
        allocated under section 406(a) for an insular area shall be 
        used for a grant to the eligible grantee for the insular area 
        for such fiscal year.
            ``(2) Rental assistance.--Any amounts allocated under 
        section 406(b) for a State shall be used for a grant to the 
        State for such fiscal year.
            ``(3) Flexible homeless assistance.--Any amounts allocated 
        under section 406(c) for a State or for a metropolitan city or 
        urban county shall be used for a grant to the eligible grantee 
        for the State, or for the metropolitan city or urban county, 
        respectively, for the fiscal year.
    ``(c) Use for Eligible Activities.--Grant amounts provided under 
this title and any supplemental funds provided under section 407 may be 
used only as follows:
            ``(1) Insular area grants.--In the case of a grant under 
        subsection (b)(1) for an insular area, for eligible activities 
        under subtitle C benefiting the insular area.
            ``(2) State rental assistance grants.--In the case of a 
        grant under subsection (b)(2) to a State, for eligible 
        activities under subtitle B within the State.
            ``(3) Flexible homeless assistance grants.--In the case of 
        a grant under subsection (b)(3) for a State, or for a 
        metropolitan city or urban county, for eligible activities 
        under subtitle C benefiting the State, or the city or county, 
        and carried out only within nonentitlement areas of the State 
        or within the city or county, as applicable.

``SEC. 403. ELIGIBLE GRANTEES.

    ``For purposes of this title, the term `eligible grantee' has the 
following meaning:
            ``(1) Grants for insular areas.--In the case of a grant 
        from amounts allocated under section 406(a) for an insular 
        area, such term means--
                    ``(A) the insular area, or an agency, office, or 
                other entity of the area; or
                    ``(B) to the extent that an entity that is a 
                private nonprofit organization is authorized by the 
                government of the insular area to act as the grantee 
                for the area for purposes of this title, such private 
                nonprofit entity.
            ``(2) Grants to states for rental assistance.--In the case 
        of a grant from amounts allocated under section 406(b) for a 
        State, such term means the State or an agency, office, or other 
        entity of the State.
            ``(3) Grants for flexible homeless assistance.--In the case 
        of a grant from amounts allocated under section 406(c) for a 
        State, or for a metropolitan city or urban county, such term 
        means--
                    ``(A) the State, or the metropolitan city or urban 
                county, respectively, or an agency, office, or other 
                entity of the State, or the city or county; or
                    ``(B) to the extent that a private nonprofit 
                organization is authorized by the government of the 
                State, or the city or county, to act as the grantee for 
                the State, or the city or county, for purposes of this 
                title, such private nonprofit organization.

``SEC. 404. USE OF GRANT AMOUNTS BY PROJECT SPONSORS.

    ``(a) Transfer of Grant Amounts by Grantees.--Eligible activities 
assisted with grant amounts provided under this title may be carried 
out directly by the grantee or by other entities serving as project 
sponsors, which are provided such grant amounts by the grantee or a 
subgrantee of the grantee.
    ``(b) Competitive Selection Criteria.--To the extent that a grantee 
does not use grant amounts for eligible activities carried out directly 
by the grantee, the grantee shall select eligible activities for 
assistance and project sponsors to carry out such eligible activities 
pursuant to a competition based on criteria established by the 
Secretary, which shall include--
            ``(1) whether the project sponsor that will carry out the 
        activity is financially responsible;
            ``(2) the ability of the project sponsor to carry out the 
        eligible activity;
            ``(3) the need for the type of eligible activity in the 
        area to be served;
            ``(4) the extent to which the amount of assistance to be 
        provided with grant amounts will be supplemented with resources 
        from other public and private sources;
            ``(5) the cost-effectiveness of the proposed eligible 
        activity;
            ``(6) the extent to the which the project sponsor carrying 
        out the eligible activity will coordinate with other Federal, 
        State, local, private and other entities serving homeless 
        persons in the planning and operation of the activity, to the 
        extent practicable, and pursuant to section 408(j)(3) will 
        carry out the activity in coordination and conjunction with 
        federally funded activities for the homeless; and
            ``(7) such other factors as the Secretary determines to be 
        appropriate to carry out this title in an effective and 
        efficient manner.

``SEC. 405. COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY COMPLIANCE.

    ``A grant under this title may be provided to an eligible grantee 
only if--
            ``(1) the applicable jurisdiction for which the grant 
        amounts are allocated under section 406 has submitted to the 
Secretary a comprehensive housing affordability strategy under section 
105 of the Cranston-Gonzalez National Affordable Housing Act that has 
been approved by the Secretary and is in effect for the fiscal year for 
which such grant amounts are to be provided; and
            ``(2) the public official of such applicable jurisdiction 
        who is responsible for submitting the comprehensive housing 
        affordability strategy certifies to the Secretary that the 
        eligible activities to be assisted with such grant amounts are 
        or will be consistent with the comprehensive housing 
        affordability strategy for the jurisdiction and the plans in 
        such strategy for addressing housing needs for homeless 
        families.

``SEC. 406. ALLOCATION AND AVAILABILITY OF AMOUNTS.

    ``(a) Allocation for Insular Areas.--Of the amount made available 
for grants under this title for a fiscal year, the Secretary shall 
reserve for grants for each of the insular areas amounts in accordance 
with an allocation formula established by the Secretary.
    ``(b) Allocation for Rental Assistance Activities.--
            ``(1) Annual portion of appropriated amount available.--Of 
        the amount made available for grants under this title for a 
        fiscal year that remains after amounts are reserved under 
        subsection (a), the Secretary shall allocate 70 percent for 
        States for use under subtitle B.
            ``(2) Determination of allocated amount.--Except as 
        provided in subsection (e), the Secretary shall allocate 
        amounts available for use under subtitle B for a fiscal year so 
        that, for each State, the percentage of the total amount so 
        available that is allocated for a State 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 and for 
        metropolitan cities and urban counties located in such State.
    ``(c) Allocation for Flexible Homeless Assistance Grants.--
            ``(1) Annual portion of appropriated amount available.--Of 
        the amount made available for grants under this title for a 
        fiscal year that remains after amounts are reserved under 
        subsection (a), the Secretary shall allocate 30 percent for use 
        under subtitle C. Of such amount allocated for use under 
        subtitle C for a fiscal year, 70 percent shall be allocated for 
        metropolitan cities and urban counties and 30 percent shall be 
        allocated for States.
            ``(2) Determination of allocated amount.--Except as 
        provided in subsection (e), the Secretary shall allocate 
        amounts available for use under subtitle C for a fiscal year so 
        that--
                    ``(A) for each metropolitan city and urban county, 
                the percentage of the total amount allocated under this 
                subsection for cities and counties that is allocated 
                for such city or county is equal to the percentage of 
                the total amount available for the preceding fiscal 
                year under section 106(b) of the Housing and Community 
                Development Act of 1974 for grants to metropolitan 
                cities and urban counties that was allocated for such 
                city or county; and
                    ``(B) for each State, the percentage of the total 
                amount allocated under this subsection for States that 
                is allocated for such State is equal to the percentage 
                of the total amount available for the preceding fiscal 
                year under section 106(d) of the Housing and Community 
                Development Act of 1974 for grants to States that was 
                allocated for such State.
    ``(d) Reallocation of Amounts.--Except as provided in subsection 
(e), the Secretary shall reallocate amounts allocated under subsection 
(a), (b), or (c) as follows:
            ``(1) Unused amounts.--Not less than once during each 
        fiscal year, the Secretary shall reallocate any amounts 
        allocated under this section that--
                    ``(A) are allocated for a State, metropolitan city 
                or urban county, or insular area, but not provided to 
                an eligible grantee for the jurisdiction because of 
                failure to apply for a grant under this title or 
                failure to comply with the requirements of this title;
                    ``(B) were provided to a grantee and (i) recaptured 
                under this title, or (ii) not utilized by the grantee 
                in accordance with the purposes and objectives of the 
                approved application of the grantee within a reasonable 
                time period, which the Secretary shall establish; or
                    ``(C) are returned to the Secretary by the time of 
                such reallocation.
        Any amounts allocated under subsection (b) that become 
        available for reallocation under this subsection shall be 
        reallocated only among other States for assistance for use 
        under subtitle B. Any amounts allocated under subsection (c) 
        that become available for reallocation under this subsection 
        shall be reallocated only for assistance for use under subtitle 
        C.
            ``(2) Failure to comply with comprehensive housing 
        affordability strategy requirement.--Notwithstanding paragraph 
        (1), if, for any fiscal year, a metropolitan city or urban 
        county fails to comply with the requirement under section 
        405(1) during the 90-day period beginning on the date that 
        amounts for grants under this title for such fiscal year first 
        become available for allocation, the amounts that would have 
        been allocated under subsection (c) of this section for such 
        city or county shall be reallocated for the State in which the 
        unit is located, but only if the State has complied with the 
        requirement under section 405(1). Any amounts that cannot be 
        allocated for a State under the preceding sentence shall be 
        reallocated for other metropolitan cities and urban counties 
        and States that comply with such requirement and demonstrate 
        extraordinary need or large numbers of homeless persons, as 
        determined by the Secretary.
    ``(e) Minimum Allocation Requirement.--If, by December 1 of any 
fiscal year, the amount appropriated for grants under this title for 
such fiscal year is less than $750,000,000--
            ``(1) the Secretary shall not allocate amounts for such 
        fiscal year under subsections (b) and (c);
            ``(2) subsection (d) shall not apply to amounts for such 
        fiscal year; and
            ``(3) notwithstanding any other provision of this title, 
        the Secretary shall make grants under this title from such 
        amounts to States, units of general local government, and 
        private nonprofit organizations, pursuant to a national 
        competition based on the criteria specified in section 425.

``SEC. 407. MATCHING FUNDS REQUIREMENT.

    ``(a) Supplementation by Grantee.--
            ``(1) In general.--Each State, metropolitan city or urban 
        county, and insular area for which a grant under this title is 
        made shall--
                    ``(A) supplement the amount of the grant provided 
                under this title with an amount of funds from sources 
                other than this title, as provided under paragraph (2); 
                and
                    ``(B) certify to the Secretary its compliance with 
                this section, which shall include only a description of 
                the sources and amounts of such supplemental funds and, 
                if applicable, the compliance of the grantee with the 
requirements under section 421(b).
            ``(2) Amount.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), the amount provided under this 
                paragraph shall be an amount that is not less than 50 
                percent of the amount of the grant under this title.
                    ``(B) Rental assistance.--In the case of a grant to 
                a State under paragraph (2) or (3) of section 
                402(b)(2), the amount provided under this paragraph 
                shall be--
                            ``(i) if the grant exceeds $100,000, the 
                        amount that is not less than the difference 
                        between the amount received under the grant and 
                        $100,000; and
                            ``(ii) if the grant does not exceed 
                        $100,000, $0.
    ``(b) Authority for Grantees To Require Supplementation.--Each 
grantee under this title may require any subgrantee or project sponsor 
to whom it provides such grant amounts to supplement the amount of such 
grant amounts provided with an amount of funds from sources other than 
this title, except that the grantee may not require supplementation in 
an amount exceeding 25 percent of the amount of grant amounts provided 
to the subgrantee or project sponsor. Supplemental amounts provided by 
a subgrantee or project sponsor pursuant to this subsection shall not 
be considered supplemental amounts for purposes of any grantee 
complying with the requirement under subsection (a).
    ``(c) Use.--Any supplemental funds made available in compliance 
with this section shall be available only to carry out eligible 
activities (1) under the subtitle B, if the grant amounts are available 
only for such activities, or (2) under subtitle C, if the grant amounts 
are available only for such activities.
    ``(d) Supplemental Funds.--In determining the amount of 
supplemental funds provided in accordance with this section, the 
following amounts may be included:
            ``(1) The value of any donated material or building.
            ``(2) The value of any lease on a building.
            ``(3) 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 the activity assisted under this title, except that not 
        more than 25 percent of the supplemental amounts required under 
        this section may result from this paragraph.
            ``(4) The amount of any salary paid to staff to carry out a 
        program for eligible activities under subtitle B or C.
            ``(5) The cost or value of any donated good or services 
        (including supportive services provided, but not including the 
        value of any time or services contributed by volunteers).

``SEC. 408. PROGRAM REQUIREMENTS.

    ``(a) Applications.--
            ``(1) Form and procedure.--The Secretary may make a grant 
        under this title only pursuant to an application for a grant 
        submitted by an eligible grantee in the form and in accordance 
        with the procedures established by the Secretary. The Secretary 
        may not give preference or priority to any application on the 
        basis that the application was submitted by any particular type 
        of eligible grantee.
            ``(2) Contents.--The Secretary shall require that 
        applications contain at a minimum the following information:
                    ``(A) Grants for rental assistance.--In the case of 
                an application for a grant available for use for 
                activities under subtitle B--
                            ``(i) a description of the rental 
                        assistance activities under subtitle B to be 
                        assisted; and
                            ``(ii) a description of the entities that 
                        will carry out such activities and the programs 
                        for carrying out such activities.
                    ``(B) Grants for flexible homeless assistance.--In 
                the case of an application for a grant available for 
                use for activities under subtitle C--
                            ``(i) a description of the eligible 
                        activities to be assisted, to the extent 
                        available at the time;
                            ``(ii) in the case of a grant for a 
                        facility assisted under paragraph (1) or (2) of 
                        section 421(a), assurances satisfactory to the 
                        Secretary that the facility will be comply with 
                        the requirement under section 423(e)(1);
                            ``(iii) in the case of a grant for a 
                        supportive housing facility assisted under this 
                        title that does not receive assistance under 
                        either such paragraph, annual assurances during 
                        the period specified in the application that 
                        the facility will be operated for the purpose 
                        specified in the application for such period; 
                        and
                            ``(iv) in the case of a grant for a 
                        supportive housing facility, reasonable 
                        assurances that the project sponsor will own or 
                        have control of a site for not later than the 
                        expiration of the 12-month period beginning 
                        upon notification of an award of grant 
                        assistance, unless the application proposes 
                        providing supportive housing assisted under 
                        section 421(a)(3) or housing that will 
                        eventually be owned or controlled by the 
                        families and individuals served; except that a 
                        project sponsor may obtain ownership or control 
                        of a suitable site different from the site 
                        specified in the application.
                    ``(C) All grants.--In the case of an application 
                for any grant under this title--
                            ``(i) a description of the size and 
                        characteristics of the population that will be 
                        served by the eligible activities assisted with 
                        grant amounts;
                            ``(ii) a description of the public and 
                        private resources that are expected to be made 
                        available in connection with grant amounts 
                        provided;
                            ``(iii) a description of the process to be 
                        used in compliance with section 404(b) to 
                        select eligible activities to be assisted and 
                        project sponsors; and
                            ``(iv) 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.
    ``(b) Required Agreements.--The Secretary may not provide a grant 
under this title for any applicant unless the applicant agrees--
            ``(1) to ensure that the eligible activities carried out 
        with grant amounts will be carried out in accordance with the 
        provisions of this title;
            ``(2) to conduct an ongoing assessment of the supportive 
        services required by homeless persons assisted by the eligible 
        activities and the availability of such services to such 
        persons;
            ``(3) in the case of grant amounts to be used under 
        subtitle C for a supportive housing facility or an emergency 
        shelter, to ensure the provision of such residential 
        supervision as the Secretary determines is necessary to 
        facilitate the adequate provision of supportive services to the 
        residents and users of the facility or shelter;
            ``(4) to monitor and report under section 431 to the 
        Secretary on the progress of the eligible activities carried 
        out with grant amounts;
            ``(5) to develop and implement procedures to ensure (A) the 
        confidentiality of records pertaining to any individual 
        provided family violence prevention or treatment services 
        through any activities assisted with grant amounts, and (B) 
        that the address or location of any family violence shelter 
        facility assisted with grant amounts will not be made public, 
        except with written authorization of the person or persons 
        responsible for the operation of such facility;
            ``(6) to the maximum extent practicable, to involve 
        homeless persons and families, through employment, volunteer 
        services, or otherwise, in carrying out eligible activities 
        assisted with grant amounts; and
            ``(7) to comply with such other terms and conditions as the 
        Secretary may establish to carry out this title in an effective 
        and efficient manner.
    ``(c) Occupancy Charge.--Each homeless person or family residing in 
a dwelling unit assisted under subtitle B or C or in a transitional 
housing facility assisted under subtitle C may be required to pay an 
occupancy charge in an amount determined by the grantee providing the 
assistance, which may not exceed an amount equal to 30 percent of the 
adjusted income (as such term is defined in section 3(b) of the United 
States Housing Act of 1937 or any other subsequent provision of Federal 
law defining such term for purposes of eligibility for, or rental 
charges in, public housing) of the person or family. Occupancy charges 
paid may be reserved, in whole or in part, to assist residents in 
moving to permanent supportive housing.
    ``(d) Flood Protection Standards.--Flood protection standards 
applicable to housing acquired, rehabilitated, constructed, or assisted 
with grant amounts provided under this title shall be no more 
restrictive than the standards applicable under Executive Order No. 
11988 (42 U.S.C. 4321 note; relating to floodplain management) to the 
other programs in effect under this title immediately before the 
enactment of the Homeless Housing Programs Consolidation and 
Flexibility Act.
    ``(e) Participation of Homeless Individuals.--The Secretary shall, 
by regulation, require each grantee to ensure that each project sponsor 
assisted by the grantee provides for the participation of not less than 
1 homeless person or former homeless person on the board of directors 
or other equivalent policymaking entity of the project sponsor, to the 
extent that such sponsor considers and makes policies and decisions 
regarding any activity or facility, supportive services, or assistance 
provided with grant amounts under this title. The Secretary shall 
provide that a grantee may grant waivers to project sponsors unable to 
meet the requirement under the preceding sentence if the sponsor agrees 
to otherwise consult with homeless or formerly homeless person in 
considering and making such policies and decisions.
    ``(f) Limitation on Use of Funds.--No grant amounts received under 
this title (or any funds provided under section 407 or otherwise to 
supplement such grants) may be used to replace other State or local 
funds previously used, or designated for use, to assist homeless 
persons.
    ``(g) Limitation on Administrative Expenses.--Notwithstanding any 
other provision of this title, of any grant amounts under this title 
used to carry out eligible activities, the grantee or the project 
sponsor may use an amount not exceeding 5 percent for administrative 
purposes.
    ``(h) Housing Quality.--
            ``(1) Requirement.--Assistance may not be provided with 
        grant amounts made available for use under this title for any 
        dwelling unit, supportive housing facility, or emergency 
        shelter that fails to comply with the housing quality standards 
        applicable under paragraph (2) in the jurisdiction in which the 
        housing is located, unless the deficiency is promptly corrected 
        and the project sponsor verifies the correction.
            ``(2) Applicable standards.--The housing quality standards 
        applicable under this subsection to a dwelling unit, supportive 
        housing facility, or emergency shelter shall be--
                    ``(A) in the case of a unit, facility, or shelter 
                located in a jurisdiction which has in effect laws, 
                regulations, standards, or codes regarding habitability 
                of such units, facilities, or shelters that provide 
                protection to residents of the dwellings that is equal 
                to or greater than the protection provided under the 
                housing quality standards established under paragraph 
                (3), such applicable laws, regulations, standards, or 
                codes; or
                    ``(B) in the case of a unit, facility, or shelter 
                located in a jurisdiction which does not have in effect 
                laws, regulations, standards, or codes described in 
                subparagraph (A), the housing quality standards 
                established under paragraph (3).
            ``(3) Federal housing quality standards.--The Secretary 
        shall establish housing quality standards under this paragraph 
        that ensure that dwelling units, supportive housing facilities, 
        and emergency shelters assisted under this title are safe, 
        clean, and healthy. Such standards shall include requirements 
        relating to habitability, including maintenance, health and 
        sanitation factors, condition, and construction of dwellings. 
        The Secretary shall differentiate between major and minor 
        violations of such standards and may establish separate 
        standards for dwelling units, supportive housing facilities, 
        and emergency shelters.
    ``(i) Termination of Assistance.--If a person or family (not 
including residents of an emergency shelter) who receives assistance 
under this title under a program assisted with grant amounts under this 
title violates program requirements, the project sponsor may terminate 
assistance in accordance with a formal process established by such 
sponsor that recognizes the rights of individuals receiving such 
assistance to due process of law, which may include a hearing.
    ``(j) Coordination With Homeless Programs.--
            ``(1) Purpose.--The purpose of the consultation and 
        coordination required under this subsection is to provide 
        various services, activities, and assistance for homeless 
        persons and families in an efficient, effective, and targeted 
        manner designed to meet the comprehensive needs of the 
        homeless.
            ``(2) Coordination by federal agencies.--The Secretary of 
        Housing and Urban Development, the Secretary of Health and 
        Human Services, the Secretary of Labor, the Secretary of 
        Education, the Secretary of Veterans Affairs, and the Secretary 
        of Agriculture shall consult and coordinate, and may establish 
        any requirements necessary, to ensure that assistance for 
        federally funded activities for the homeless provided by such 
        Secretary is made available, to the greatest extent 
        practicable, in conjunction and coordination with assistance 
        for other federally funded activities for the homeless and with 
        assistance under this title.
            ``(3) Requirements for housing assistance.--The Secretary 
        shall establish such requirements as the Secretary considers 
        necessary to ensure that grant amounts provided under this 
        title are used by grantees and project sponsors, to the 
        greatest extent practicable, in coordination and in conjunction 
        with federally funded activities for the homeless.
            ``(4) Definition.--For purposes of this subsection, the 
        term `federally funded activities for the homeless' means 
        activities to assist homeless persons or homeless families that 
        are funded (in whole or in part) with amounts provided by the 
        Federal Government (other than amounts provided under this 
        title) and includes--
                    ``(A) the programs for health care under sections 
                340 and part C of title V of the Public Health Service 
                Act;
                    ``(B) the programs for education, training and 
                community services under title VII of the Stewart B. 
                McKinney Homeless Assistance Act;
                    ``(C) food assistance for homeless persons and 
                families through the food programs under the Food Stamp 
                Act of 1977 and the Emergency Food Assistance Act of 
                1983;
                    ``(D) the job training, housing, and medical 
                programs for homeless veterans of the Department of 
                Veterans Affairs;
                    ``(E) the job corps centers for homeless families 
                program under section 433A of the Job Training 
                Partnership Act
                    ``(F) the program for preventive services for 
                children of homeless families or families at risk of 
                homelessness under title III of the Child Abuse 
                Prevention and Treatment Act;
                    ``(G) the programs under the Runaway and Homeless 
                Youth Act; and
                    ``(H) assistance for homeless persons and families 
                under the aid to families with dependent children and 
                supplemental security income programs under part A of 
                title IV and title XVI, respectively, of the Social 
                Security Act).
            ``(5) Companion services block grants in cases of failure 
        to comply.--
                    ``(A) In general.--If, for any fiscal year, the 
                Secretary of Housing and Urban Development determines 
                that adequate coordination has not taken place to 
                ensure that assistance for federally funded activities 
                for the homeless is made available in conjunction and 
                coordination with assistance under this title (as 
                required under paragraph (2)), and the Interagency 
                Council on the Homeless concurs in the determination, 
                the Secretary shall carry out a program under 
                subparagraph (B) to make companion services block 
                grants available for such fiscal year.
                    ``(B) Companion service block grants.--The block 
                grant program under this subparagraph shall provide 
                block grants, using amounts available pursuant to 
                subparagraph (C), to eligible grantees under this title 
                to provide services of the type available under the 
                programs referred to in paragraph (4) in connection 
                with housing assistance under this title. The Secretary 
                shall consult with the Interagency Council on the 
                Homeless in establishing and carrying out the block 
                grant program under this paragraph.
                    ``(C) Funding.--
                            ``(i) In general.--Notwithstanding any 
                        other provision of law, in any fiscal year in 
                        which block grants are to be provided in 
                        accordance with subparagraph (A), there shall 
                        be available for such block grants, from the 
                        amount made available for such fiscal year for 
                        each activity referred to in paragraph (4), 10 
                        percent of the portion of such amount that is 
attributable to assistance for the homeless, as determined by the 
Secretary and the Interagency Council for the Homeless.
                            ``(ii) Limitation.--Notwithstanding clause 
                        (i), the aggregate amount available for 
                        companion services block grants under this 
                        paragraph for a fiscal year shall not exceed 
                        the total amount made available pursuant to 
                        section 435 for housing assistance under this 
                        title. If, for any fiscal year, the amount 
                        determined under clause (i) exceeds such 
                        amount, the Secretary shall reduce the 
                        percentage under clause (i) for such year so 
                        that the aggregate amount made available for 
                        companion services block grants under this 
                        paragraph from the amounts for each activity 
                        referred to in paragraph (4) is equal to the 
                        total amount made available pursuant to section 
                        435 for housing assistance under this title.

``SEC. 409. SUPPORTIVE SERVICES.

    ``(a) Requirement.--To the extent practicable, each project sponsor 
administering rental assistance provided with amounts under this title 
or a supportive housing facility or emergency shelter assisted with 
such amounts shall provide supportive services for residents of the 
dwelling units or facility or shelter assisted. The array of supportive 
services provided may be designed by the grantee or the project sponsor 
administering the assistance, facility, or shelter. A project sponsor 
administering a supportive housing facility shall provide supportive 
services for other homeless persons using the facility.
    ``(b) Requirements.--Supportive services provided with grant 
amounts under this title shall address the special needs of homeless 
persons (such as homeless persons with disabilities, homeless persons 
with acquired immunodeficiency syndrome and related diseases, homeless 
persons who have chronic problems with alcohol or drugs (or both), and 
homeless families with children) intended to be served.
    ``(c) Services.--Supportive services may include activities such 
as--
            ``(1) establishing and operating a child care services 
        program for homeless families;
            ``(2) establishing and operating an employment assistance 
        program;
            ``(3) providing outpatient health services, food, and case 
        management;
            ``(4) providing assistance in obtaining permanent housing, 
        employment counseling, and nutritional counseling;
            ``(5) providing security arrangements necessary for the 
        protection of residents of supportive housing or emergency 
        shelters and for homeless persons using supportive housing 
        facilities;
            ``(6) providing assistance in obtaining other Federal, 
        State, and local assistance available for such residents and 
        persons (including mental health benefits, employment 
        counseling, and medical assistance, but not including major 
        medical equipment); and
            ``(7) providing other appropriate services.
    ``(d) Provision of Services.--Supportive services provided with 
grant amounts under this title may be provided directly by the grantee, 
by the project sponsor administering the rental assistance or the 
facility or shelter, or by contract with other public or private 
service providers. Such services provided in connection with a 
supportive housing facility may be provided to homeless persons who do 
not reside in the supportive housing, but only to the extent consistent 
with the comprehensive housing affordability strategy under section 105 
of the Cranston-Gonzalez National Affordable Housing Act for the 
applicable jurisdiction.
    ``(e) Coordination With Secretary of Health and Human Services.--
            ``(1) Approval.--The Secretary shall require each grantee 
        to certify to the Secretary that, if any grant amounts under 
        this title of the grantee are to be available for any eligible 
        activity that includes the provision of outpatient health 
        services, the grantee shall ensure that the Secretary of Health 
        and Human Services is consulted with respect to the proposed 
        services before such use. If, within 45 days of such 
        consultation, the Secretary of Health and Human Services 
        determines that the proposal for delivery of the outpatient 
        health services does not meet guidelines established under 
        paragraph (2) for determining the appropriateness of such 
        proposed services, the grantee may not provide grant amounts 
        for the portion of the activity involving outpatient health 
        services unless and until the Secretary of Health and Human 
        Services determines that such services meet such guidelines.
            ``(2) Guidelines.--The Secretary of Housing and Urban 
        Development and the Secretary of Health and Human Services 
        shall jointly establish guidelines for determining the 
        appropriateness of proposed outpatient health services under 
        this section. Such guidelines shall include any provisions 
        necessary to enable grantees to promptly make determinations 
        necessary to fund eligible activities.

               ``Subtitle B--Rental Assistance Activities

``SEC. 411. USE OF AMOUNTS AND GENERAL REQUIREMENTS.

    ``(a) Use of Amounts for Rental Assistance.--
            ``(1) Authorized use.--A State that receives a grant under 
        section 402(b)(3) from amounts allocated for use under this 
        subtitle may use grant amounts (and any supplemental amounts 
        provided under section 407) only to carry out rental assistance 
        activities under sections 412, 413, and 414 within the State 
        and for supportive services required under section 409 in 
        connection with such rental assistance.
            ``(2) Flexibility of rental assistance.--Subject to the 
        requirement in subsection (b), a State may use such grant 
        amounts for activities under sections 412, 413, and 414 in such 
        amounts as the State considers appropriate.
            ``(3) Required use for housing activities.--Of the 
        aggregate of any grant amounts provided to a State for a fiscal 
        year for use under this subtitle and the supplemental amounts 
        provided for such fiscal year by the State in accordance with 
        section 407, the State shall ensure that an amount that is not 
        less than such grant amount (less any amount used pursuant to 
        subsection (c)) is used only for rental assistance payments.
    ``(b) Use Through Nonprofit Organizations.--A State that receives 
grant amounts for a fiscal year for use under this subtitle may, 
pursuant to section 404, provide such amounts to units of general local 
government and private nonprofit organizations for use in accordance 
with this subtitle, except that the State shall ensure that more than 
50 percent of the amounts received by the State for the fiscal year are 
used for providing rental assistance through private nonprofit 
organizations.
    ``(c) Administrative Fee.--To the extent provided in section 
408(g), grant amounts provided for rental assistance under this 
subtitle may be used by the project sponsor providing such assistance 
for costs of administering such assistance.
    ``(d) Targeting Populations With Special Needs.--To the maximum 
extent practicable, a State grantee shall provide for use of grant 
amounts made available for rental assistance under this subtitle in a 
manner that provides dwelling units for homeless persons who are 
persons with disabilities (including persons with physical and mental 
disabilities), homeless persons who have acquired immunodeficiency 
syndrome or related diseases, and homeless persons who have chronic 
problems with alcohol or drugs (or both).

``SEC. 412. TENANT-BASED RENTAL ASSISTANCE ACTIVITIES.

    ``(a) In General.--A State grantee may use grant amounts allocated 
for use under this subtitle to provide tenant-based rental assistance 
for homeless persons.
    ``(b) Choice of Dwelling Unit.--Rental assistance under this 
section may be provided only on behalf of homeless persons who have 
selected the dwelling unit that such person will occupy; except that 
where necessary to ensure the feasibility of providing supportive 
services, the project sponsor administering the rental assistance 
program may require the homeless person assisted to live in a 
particular structure for not more than the first 2 years of assistance 
to such person or within a particular geographic area for the full 
period of assistance to such person.

``SEC. 413. PROJECT-BASED RENTAL ASSISTANCE.

    ``(a) In General.--A State grantee may use grant amounts allocated 
for use under this subtitle to provide project-based rental assistance 
for homeless persons.
    ``(b) Attachment of Assistance to Structure.--Rental assistance 
under this section may be provided only pursuant to a contract between 
the project sponsor providing the assistance and an owner of an 
existing residential structure, which provides for rental assistance 
payments to be made to the owner and for dwelling units in the 
structure that are assisted to be occupied only by homeless persons 
during the term of the contract.

``SEC. 414. SPONSOR-BASED RENTAL ASSISTANCE.

    ``(a) In General.--A State grantee may use grant amounts allocated 
for use under this subtitle to provide sponsor-based rental assistance 
for homeless persons.
    ``(b) Provision of Housing by Sponsor.--Rental assistance under 
this section may be provided only pursuant to a contract between the 
project sponsor providing the assistance and a private nonprofit 
organization that owns or leases dwelling units (which may be single-
site or scattered-site units). The contract shall provide for rental 
assistance payments to be made to the nonprofit sponsor and for such 
dwelling units to be occupied only by homeless persons during the term 
of the contract.

  ``Subtitle C--Flexible Assistance for Supportive Housing and Other 
                               Activities

``SEC. 421. ELIGIBLE ACTIVITIES.

    ``(a) In General.--Grant amounts allocated for use under this 
subtitle may be used only for carrying out the following activities:
            ``(1) Acquisition and rehabilitation of supportive 
        housing.--For acquisition, rehabilitation, or acquisition and 
        rehabilitation, of an existing structure (including a small 
        commercial property or office space) to provide supportive 
        housing other than emergency shelter or to provide supportive 
        services; the repayment of any outstanding debt owed on a loan 
        made to purchase an existing structure for use as supportive 
        housing shall be considered to be a cost of acquisition under 
        this paragraph if the structure was not used as supportive 
        housing, or to provide supportive services, before assistance 
        is provided using grant amounts.
            ``(2) New construction of supportive housing.--For new 
        construction of a structure to be used as supportive housing.
            ``(3) Leasing of supportive housing.--For leasing of an 
        existing structure or structures, or portions thereof, to 
        provide supportive housing or supportive services during the 
        period covered by the application.
            ``(4) Operating costs for supportive housing.--For covering 
        operating costs of supportive housing (which shall include 
        capital costs for utilizing any interactive computer or 
        telephone services and other electronic information networks 
        and systems appropriate for assisting homeless families); 
        except that grant amounts provided under this subtitle may not 
        be used to cover more than 75 percent of the annual operating 
        costs of such housing.
            ``(5) Homelessness prevention.--For activities designed to 
        help persons and families 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; except that assistance under this 
        paragraph may be provided 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--
                    ``(A) are unable to make the required payments due 
                to a sudden reduction in income;
                    ``(B) need such assistance to avoid the eviction or 
                termination of services; and
                    ``(C) have a reasonable prospect of being able to 
                resume payments within a reasonable period of time.
            ``(6) Rental assistance.--For providing tenant-based, 
        project-based, or sponsor-based rental assistance for homeless 
        families in the same manner as authorized under subtitle B for 
        State grantees and subject to the same limitations applicable 
        under such subtitle to State grantees.
            ``(7) Emergency shelter.--For--
                    ``(A) renovation, major rehabilitation, or 
                conversion of a building or buildings to be used as 
                emergency shelters;
                    ``(B) covering costs of supportive services in 
                connection with an emergency shelter, 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
                    ``(C) covering costs relating to maintenance, 
                operation, insurance, utilities, and furnishings for 
                emergency shelters.
            ``(8) Supportive services.--For covering costs of 
        supportive services provided to homeless persons in connection 
        with a supportive housing facility or otherwise.
            ``(9) Technical assistance.--For technical assistance in 
        carrying out the purposes of this title, except that the 
        Secretary may provide such technical assistance directly to any 
        grantee.
    ``(b) Use for Housing Activities.--Of the aggregate of any grant 
amounts provided to a grantee for a fiscal year for use under this 
subtitle and the supplemental amounts provided for such fiscal year by 
the grantee in accordance with section 407, the grantee shall ensure 
that an amount that is not less than such grant amounts (less any 
amount used pursuant to section 408(g)) is used for eligible activities 
described in paragraphs (1) through (6) of subsection (a).
    ``(c) Use for Emergency Shelters.--Of the aggregate of any grant 
amounts provided to a grantee for a fiscal year for use under this 
subtitle, the grantee shall ensure that not more than 5 percent may be 
used to carry out eligible activities under subsection (a)(7). The 
Secretary may waive applicability of the limitation under the preceding 
sentence for a grantee for a limited period of time in cases of 
emergency, disaster, or other temporary extraordinary circumstances (as 
the Secretary may provide).

``SEC. 422. USE OF AMOUNTS THROUGH PRIVATE NONPROFIT PROVIDERS.

    ``In each fiscal year, each grantee of amounts for use under this 
subtitle shall ensure that more than 50 percent of the amounts received 
by the grantee for such fiscal year is used for carrying out eligible 
activities under section 421 through project sponsors that are private 
nonprofit organizations.

``SEC. 423. SUPPORTIVE HOUSING.

    ``(a) In General.--Housing shall be considered supportive housing 
for purposes of this subtitle if--
            ``(1) the housing complies with the requirement under 
        section 409(a) regarding providing supportive services for 
        homeless persons;
            ``(2) the housing complies with any applicable State and 
        local housing codes and licensing requirements in the 
        jurisdiction in which the housing is located; and
            ``(3) the housing--
                    ``(A) is transitional housing; or
                    ``(B) is permanent supportive housing.
    ``(b) Transitional Housing.--For purposes of this section, the term 
`transitional housing' means housing, the purpose of which is to 
facilitate the movement of homeless persons and families to permanent 
housing within 24 months or such longer period as the Secretary 
determines necessary. Assistance may be denied for housing based on a 
violation of this subsection only if a substantial number of homeless 
persons or families have remained in the housing longer than such 
period.
    ``(c) Permanent Supportive Housing.--For purposes of this section, 
the term `permanent supportive housing' means community-based housing 
for homeless persons that--
            ``(1) provides long-term housing and supportive services 
        for such persons; and
            ``(2) complies with any applicable State or local 
        requirements regarding the number of occupants in such a 
        facility.
The term includes permanent supportive housing that serves only 
homeless persons with disabilities.
    ``(d) Single Room Occupancy Dwellings.--A facility 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 facilities containing some or all such 
dwelling units.
    ``(e) Use Restrictions.--
            ``(1) Acquisition, rehabilitation, and new construction.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), each supportive housing facility 
                assisted under paragraph (1) or (2) of section 421(a) 
                shall be operated as supportive housing for the purpose 
                specified in the application for assistance with 
                amounts under this title for not less than 20 years 
                after such facility is initially placed in service 
                pursuant to such assistance.
                    ``(B) Exception.--If, within such 20-year period, 
                the need for maintaining the facility as supportive 
                housing ceases to exist (as determined by the Secretary 
                pursuant to a recommendation by the chief executive 
                officer of the appropriate unit of general local 
                government or project sponsor, taking into 
                consideration the comprehensive housing affordability 
                strategy of the jurisdiction), or the project sponsor 
                is unable to operate the facility as supportive 
                housing, the facility may be used as affordable housing 
                (in accordance with section 215 of the Cranston-
                Gonzalez National Affordable Housing Act).
            ``(2) Other assistance.--Each supportive housing facility 
        assisted under paragraph (3), (4), (7), (8), or (9) of section 
        421(a) shall be operated for the purposes specified in the 
        application for assistance with amounts under this title for 
        the duration of the period covered by the grant.
            ``(3) Conversion.--Notwithstanding paragraphs (1) and (2), 
        if the Secretary determines that a supportive housing facility 
        is no longer needed for use as supportive housing and approves 
        the use of the facility for the direct benefit of low-income 
        persons pursuant to a request for such use by the project 
        sponsor, the Secretary may authorize the sponsor to convert the 
        facility to such use.
    ``(f) Repayment of Assistance and Prevention of Undue Benefits.--
            ``(1) Repayment.--If a facility assisted under paragraph 
        (1) or (2) of section 421(a) violates the requirement under 
        subsection (e)(1)(A) of this section during the 10-year period 
        beginning upon placement of the facility in service pursuant to 
        such assistance, the Secretary shall require the grantee to 
        repay to the Secretary 100 percent of any grant amounts 
        received for such facility under such paragraph. If such a 
        facility violates such requirement after such 10-year period, 
        the Secretary shall require the grantee to repay the percentage 
        of any grants amounts received for such facility that is equal 
        to 100 percent minus 10 percentage points for each year in 
        excess of 10 that the facility is operated as supportive 
        housing.
            ``(2) Prevention of undue benefits.--Except as provided in 
        paragraph (3), upon any sale or other disposition of a facility 
        assisted under paragraph (1) or (2) of section 421(a) occurring 
        before the expiration of the 20-year period beginning on the 
        date that the facility is placed in service, the project 
        sponsor shall comply with such terms and conditions as the 
        Secretary may prescribe to prevent the sponsor from unduly 
        benefiting from such sale or disposition.
            ``(3) Exception.--Paragraphs (1) and (2) shall not apply to 
        any sale or disposition of a facility that results in the use 
        of the facility for the direct benefit of very low-income 
        persons or if all of the proceeds are used to provide 
        supportive housing meeting the requirements of this subtitle.
            ``(4) Failure to obtain site.--If a grantee of assistance 
        made available for use under this subtitle obligates assistance 
        for a supportive housing facility other than a facility under 
        section 421(a)(3) or housing that will eventually be owned or 
        controlled by the families and individuals served, and the 
        project sponsor fails to obtain ownership or control of a 
        suitable site for a proposed supportive housing during the 12-
        month period beginning upon the notification of an award of 
        grant assistance, the grantee shall recapture the assistance 
        and make such assistance available under this subtitle.

``SEC. 424. EMERGENCY SHELTER.

    ``(a) In General.--A facility shall be considered emergency shelter 
for purposes of this subtitle if the facility is designed to provide 
overnight sleeping accommodations for homeless persons and complies 
with the requirements under this section. An emergency shelter may 
include appropriate eating and cooking accommodations.
    ``(b) Requirements.--Grant amounts under this subtitle may be used 
for eligible activities under section 421(a)(7) relating to emergency 
shelter only if--
            ``(1) the Secretary determines that--
                    ``(A) use of such amounts is necessary to meet the 
                emergency shelter needs of the jurisdiction in which 
                the facility is located; and
                    ``(B) the use of such amounts for such activities 
                will not violate the prohibition under section 408(f); 
                and
            ``(2) the project sponsor agrees that it will--
                    ``(A) in the case of assistance involving major 
                rehabilitation or conversion of a building, maintain 
                the building as a shelter for homeless persons 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;
                    ``(B) in the case of assistance involving 
                rehabilitation (other than major rehabilitation or 
                conversion of a building), maintain the building as a 
                shelter for homeless persons and families for not less 
                than a 3-year period;
                    ``(C) in the case of assistance involving only 
                activities described in subparagraphs (B) and (C) of 
                section 421(a)(7), provide services or shelter to 
                homeless persons 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;
                    ``(D) comply with the standards of housing quality 
                applicable under section 408(h); and
                    ``(E) assist homeless persons in obtaining--
                            ``(i) appropriate supportive services, 
                        including permanent housing, medical and mental 
                        health treatment (including information and 
                        counseling regarding the benefits and 
                        availability of child immunization), 
                        counseling, supervision, and other services 
                        essential for achieving independent living; and
                            ``(ii) other Federal, State, local, and 
                        private assistance available for homeless 
                        persons.

           ``Subtitle D--Reporting, Definitions, and Funding

``SEC. 431. PERFORMANCE REPORTS BY GRANTEES.

    ``(a) Requirement.--For each fiscal year, each grantee under this 
title shall review and report, in a form acceptable to the Secretary, 
on the progress it has made during such fiscal year in carrying out the 
activities described in the application resulting in such grant and the 
relationship of such activities to the comprehensive housing 
affordability strategy under section 105 of the Cranston-Gonzalez 
National Affordable Housing Act for the applicable jurisdiction.
    ``(b) Content.--Each report under this section for a fiscal year 
shall--
            ``(1) describe the use of grant amounts provided to the 
        grantee for such fiscal year;
            ``(2) describe the number of homeless persons and families 
        provided shelter, housing, or assistance using such grant 
        amounts;
            ``(3) assess the relationship of such use to the goals 
        identified pursuant to section 105(b)(2) of the Cranston-
        Gonzalez National Affordable Housing Act in the comprehensive 
        housing affordability strategy for the applicable jurisdiction;
            ``(4) indicate the grantee's programmatic accomplishments; 
        and
            ``(5) describe how the grantee would change its programs as 
        a result of its experiences.
    ``(c) Submission.--The Secretary shall establish dates for 
submission of reports under this section, and review such reports and 
make such recommendations as the Secretary considers appropriate to 
carry out the purposes of this title.
    ``(d) Public Availability.--
            ``(1) In general.--A grantee preparing a report under this 
        section shall make the report publicly available to the 
        citizens in the jurisdiction of the grantee in sufficient time 
        to permit such citizens to comment on such report prior to its 
        submission to the Secretary, and in such manner and at such 
        times as the grantee may determine. The report shall include a 
        summary of any such comments received by the grantee regarding 
        its program.
            ``(2) Electronic access.--A grantee may comply with the 
        requirement under paragraph (1) by making the report available 
        through interactive computer or telephone services or other 
        electronic information networks and systems appropriate for 
        making such information widely publicly available. The 
        Secretary shall make each final report submitted under this 
        section publicly available through such a computer, telephone, 
        or information service, network, or system.

``SEC. 432. ANNUAL REPORT BY SECRETARY.

    ``The Secretary shall include in the annual report under section 8 
of the Department of Housing and Urban Development Act information 
summarizing the activities carried out under this title and setting 
forth the findings, conclusions, and recommendations of the Secretary 
as a result of the activities. Such information shall be made publicly 
available through a computer, telephone, or information service, 
network, or system described in section 431(d).

``SEC. 433. DEFINITIONS.

    ``For purposes of this title, the following definitions shall 
apply:
            ``(1) Applicant.--The term `applicant' means an eligible 
        grantee that submits an application under section 408(a) for a 
        grant under this title.
            ``(2) Eligible grantee.--The term `eligible grantee' is 
        defined in section 403.
            ``(3) Facility.--The term `facility' means a structure or 
        structures (or a portion of such structure or structures) that 
        is assisted through eligible activities under subtitle C with 
        grant amounts under this title (or for which the Secretary 
        provides technical assistance under section 421(a)(9)).
            ``(4) Grantee.--The term `grantee' means an applicant that 
        receives a grant under this title.
            ``(5) Insular area.--The term `insular area' means each of 
        the Virgin Islands, Guam, American Samoa, the Northern Mariana 
        Islands, and any other territory or possession of the United 
        States,
            ``(6) Metropolitan city, urban county, and unit of general 
        local government.--The terms `metropolitan city', `urban 
        county', and `unit of general local government' have the 
        meanings given the terms in section 102 of the Housing and 
        Community Development Act of 1974.
            ``(7) Nonentitlement area.--The term `nonentitlement area' 
        means an area that is not a metropolitan city or part of an 
        urban county and does not include Indian tribes or insular 
        areas.
            ``(8) Operating costs.--The term `operating costs' means 
        expenses incurred by a grantee operating supportive housing 
        assisted with grant amounts under this title, with respect to--
                    ``(A) the administration, maintenance, repair, and 
                security of such housing;
                    ``(B) utilities, fuel, furnishings, and equipment 
                for such housing; and
                    ``(C) the conducting of the assessment under 
                section 408(b)(2)(A).
            ``(9) Outpatient health services.--The term `outpatient 
        health services' means outpatient health care, outpatient 
        mental health services, outpatient substance abuse services, 
        and case management.
            ``(10) Person with disabilities.--The term `person with 
        disabilities' means a person who--
                    ``(A) has a disability as defined in section 223 of 
                the Social Security Act;
                    ``(B) is determined to have, pursuant to 
                regulations issued by the Secretary, a physical, 
                mental, or emotional impairment which (i) is expected 
                to be of long-continued and indefinite duration, (ii) 
                substantially impedes an individual's ability to live 
                independently, and (iii) of such a nature that such 
                ability could be improved by more suitable housing 
                conditions; or
                    ``(C) has a developmental disability as defined in 
                section 102 of the Developmental Disabilities 
                Assistance and Bill of Rights Act.
        Such term shall not exclude persons who have the disease of 
        acquired immunodeficiency syndrome or any conditions arising 
        from the etiologic agency for acquired immunodeficiency 
        syndrome.
            ``(11) Private nonprofit organization.--The term `private 
        nonprofit organization' means any private organization that--
                    ``(A) is organized under State or local laws;
                    ``(B) has no part of its net earnings inuring to 
                the benefit of any member, founder, contributor, or 
                individual;
                    ``(C) complies with standards of financial 
                accountability acceptable to the Secretary; and
                    ``(D) has among its purposes significant activities 
                related to the provision of--
                            ``(i) decent housing that is affordable to 
                        low-income and moderate-income families; or
                            ``(ii) shelter, housing, or services for 
                        homeless persons or families.
            ``(12) Project sponsor.--The term `project sponsor' means 
        an entity that uses grant amounts under this title to carry out 
        a rental assistance program under subtitle B or eligible 
        activities under subtitle C. The term includes a grantee 
        carrying out such a program or activities.
            ``(13) Secretary.--The term `Secretary' means the Secretary 
        of Housing and Urban Development.
            ``(14) State.--The term `State' means each of the several 
        States and the Commonwealth of Puerto Rico.
            ``(15) Supportive housing.--The term `supportive housing' 
        means a facility that meets the requirements of section 423.
            ``(16) Supportive services.--The term `supportive services' 
        means services under section 409.
            ``(17) Very low-income person.--The term `very low-income 
        person' has the same meaning given the term under section 3(b) 
        of the United States Housing Act of 1937 (or any other 
        subsequent provision of Federal law defining such term for 
        purposes of eligibility for, or rental charges in, public 
        housing).

``SEC. 434. REGULATIONS.

    ``(a) Issuance.--Not later than the expiration of the 30-day period 
beginning upon the date of the enactment of the Homeless Housing 
Programs Consolidation and Flexibility Act, the Secretary shall issue 
interim regulations to carry out this title. The Secretary shall issue 
final regulations to carry out this title after notice and opportunity 
for public comment regarding the interim regulations in accordance with 
the procedure under section 553 of title 5, United States Code, 
applicable to substantive rules (notwithstanding subsections (a)(2), 
(b)(B), and (d)(3) of such section), but not later than the expiration 
of the 90-day period beginning upon the date of the enactment of the 
Homeless Housing Programs Consolidation and Flexibility Act.
    ``(b) Rule of Construction.--Any failure by the Secretary to issue 
any regulations under this section shall not affect the effectiveness 
of any provision of this title pursuant to section 4(b) of the Homeless 
Housing Programs Consolidation and Flexibility Act.

``SEC. 435. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated for grants under this 
title $1,000,000,000 for each of fiscal years 1997, 1998, 1999, and 
2000.''.
    (b) Applicability.--The provisions of the amendment made by 
subsection (a) shall apply with respect to fiscal year 1997 and 
thereafter.

SEC. 5. INTERAGENCY COUNCIL ON THE HOMELESS.

    (a) Functions.--Section 203 of the Stewart B. McKinney Homeless 
Assistance Act (42 U.S.C. 11313) is amended to read as follows:

``SEC. 203. FUNCTIONS.

    ``The Council shall--
            ``(1) monitor the coordination of assistance for federally 
        funded activities for the homeless to ensure that such 
        assistance is provided in coordination and conjunction with 
        assistance under title IV for housing for the homeless, in 
        accordance with section 408(j)(2);
            ``(2) if the Secretary of Housing and Urban Development 
        makes a determination under section 408(j)(5)(A) that 
        sufficient coordination under such section has not taken place, 
        make an independent determination under such section regarding 
        whether sufficient coordination has taken place;
            ``(3) advise and assist the Secretary of Housing and Urban 
        Development in establishing requirements for a companion 
        services block grant program under section 408(j)(5);
            ``(4) for any fiscal year in which a companion services 
        block grant program is to be carried out pursuant to section 
        408(j)(5), advise and assist the Secretary of Housing and Urban 
        Development in carrying out the program; and
            ``(5) carry out any other duties prescribed by law.''.
    (b) 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 
such sums as may be necessary for each of fiscal years 1997, 1998, 
1999, and 2000.''.
    (c) Termination.--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, 2000''.
    (d) Repeal.--Section 210 of the Stewart B. McKinney Homeless 
Assistance Act (42 U.S.C. 11320) is hereby repealed.

SEC. 6. REPEALS AND CONFORMING AMENDMENTS.

    (a) Repeals.--The following provisions of law are hereby repealed:
            (1) Innovative homeless initiatives demonstration.--Section 
        2 of the HUD Demonstration Act of 1993 (42 U.S.C. 11301 note).
            (2) FHA single family property disposition for homeless 
        use.--Section 1407 of the Housing and Community Development Act 
        of 1992 (Public Law 102-550; 106 Stat. 4034).
            (3) Housing for rural homeless and migrant farmworkers.--
        Subsection (k) of section 516 of the Housing Act of 1949 (42 
        U.S.C. 1486(k)).
    (b) Termination of SRO Assistance Program.--Section 8(e)(2) of the 
United States Housing Act of 1937 shall not be in effect on or after 
the date of the enactment of this Act as provided in subsections (a)(4) 
and (b)(2) of section 289 of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12839).
    (c) Conforming Amendments to Youthbuild Program.--Title IV of the 
Cranston-Gonzalez National Affordable Housing Act is amended--
            (1) in section 455(b) (42 U.S.C. 12899d(b)) by inserting 
        ``subtitle C of'' before ``title IV''; and
            (2) in section 457(4) (42 U.S.C. 12899f(4)), by striking 
        ``section 103'' and inserting ``section 102''.
    (d) 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 titles I, II, III, and IV (including the items 
relating to the subtitles, parts, and sections of such titles) and 
inserting the following new items:

                     ``TITLE I--GENERAL PROVISIONS

``Sec. 101. Short title and table of contents.
``Sec. 102. General definition of homeless individual.
``Sec. 103. Funding availability and limitations.
``Sec. 104. Annual program summary by Comptroller General.
            ``TITLE II--INTERAGENCY COUNCIL ON THE HOMELESS

``Sec. 201. Establishment.
``Sec. 202. Membership.
``Sec. 203. Functions.
``Sec. 204. Director and staff.
``Sec. 205. Powers.
``Sec. 206. Transfer of functions.
``Sec. 207. Definitions.
``Sec. 208. Authorization of appropriations.
``Sec. 209. Termination.
   ``TITLE III--FEDERAL EMERGENCY MANAGEMENT FOOD AND SHELTER PROGRAM

                ``Subtitle A--Administrative Provisions

``Sec. 301. Emergency Food and Shelter Program National Board.
``Sec. 302. Local boards.
``Sec. 303. Role of Federal Emergency Management Agency.
``Sec. 304. Records and audit of National Board and recipients of 
                            assistance.
``Sec. 305. Annual report.
            ``Subtitle B--Emergency Food and Shelter Grants

``Sec. 311. Grants by the Director.
``Sec. 312. Retention of interest earned.
``Sec. 313. Purposes of grants.
``Sec. 314. Limitation on certain costs.
``Sec. 315. Disbursement of funds.
``Sec. 316. Program guidelines.
                    ``Subtitle C--General Provisions

``Sec. 321. Definitions.
``Sec. 322. Authorization of appropriations.
 ``TITLE IV--BLOCK GRANTS FOR RENTAL ASSISTANCE AND FLEXIBLE HOMELESS 
                           ASSISTANCE GRANTS

                    ``Subtitle A--General Provisions

``Sec. 401. Purpose.
``Sec. 402. Grant authority.
``Sec. 403. Eligible grantees.
``Sec. 404. Use of grant amounts by project sponsors.
``Sec. 405. Comprehensive housing affordability strategy compliance.
``Sec. 406. Allocation and availability of amounts.
``Sec. 407. Matching funds requirement.
``Sec. 408. Program requirements.
``Sec. 409. Supportive services.
               ``Subtitle B--Rental Assistance Activities

``Sec. 411. Use of amounts and general requirements.
``Sec. 412. Tenant-based rental assistance activities.
``Sec. 413. Project-based rental assistance.
``Sec. 414. Sponsor-based rental assistance.
  ``Subtitle C--Flexible Assistance for Supportive Housing and Other 
                               Activities

``Sec. 421. Eligible activities.
``Sec. 422. Use of amounts through private nonprofit providers.
``Sec. 423. Supportive housing.
``Sec. 424. Emergency shelter.
           ``Subtitle D--Reporting, Definitions, and Funding

``Sec. 431. Performance reports by grantees.
``Sec. 432. Annual report by Secretary.
``Sec. 433. Definitions.
``Sec. 434. Regulations.
``Sec. 435. Authorization of appropriations.''.

SEC. 7. SAVINGS PROVISION.

    Nothing in this Act may be construed to affect the validity of any 
right, duty, or obligation of the United States or other person arising 
under or pursuant to any commitment or agreement entered into before 
the date of the enactment of this Act under any provision of law 
repealed or amended by this Act.

SEC. 8. TREATMENT OF PREVIOUSLY OBLIGATED AMOUNTS.

    Notwithstanding the amendment or repeal of any provision of law by 
this Act, any amounts appropriated to carry out the provisions so 
amended or repealed that are obligated before the date of the enactment 
of this Act shall be used in the manner provided, and subject to any 
requirements and agreements entered into, under such provisions as such 
provisions were in effect immediately before such date of enactment.
                                 <all>