[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 217 Reported in House (RH)]





                                                 Union Calendar No. 233

105th CONGRESS

  1st Session

                               H. R. 217

                          [Report No. 105-407]

_______________________________________________________________________

                                 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.

_______________________________________________________________________

                           December 19, 1997

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed





                                                 Union Calendar No. 233
105th CONGRESS
  1st Session
                                H. R. 217

                          [Report No. 105-407]

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

                            January 7, 1997

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

                           December 19, 1997

  Reported with an amendment, committed to the Committee of the Whole 
       House on the State of the Union, and ordered to be printed
 [Strike out all after the enacting clause and insert the part printed 
                               in italic]
[For text of introduced bill, see copy of bill as introduced on January 
                                7, 1997]

_______________________________________________________________________

                                 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; PURPOSE.

    (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 hopelessness 
        in a comprehensive manner;
            (3) there are a multitude of Federal Government programs to 
        assist the homeless, including programs for elderly 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) increasing resources available to reduce hopelessness 
        are utilized in the development of services rather than the 
        creation of housing;
            (7) housing programs must be evaluated on the basis of 
        their effectiveness in reducing hopelessness, transitioning 
        individuals to permanent housing and self-sufficiency, and 
        creating an adequate plan to discharge homeless persons to and 
        from mainstream service systems;
            (8) effective hopelessness treatment should provide a 
        comprehensive housing system (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;
            (9) 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;
            (10) hopelessness should be treated as part of a symptom of 
        many neighborhood and community problems, whose remedies 
        require a holistic approach integrating all available 
        resources;
            (11) there are many private sector entities, particularly 
        nonprofit organizations, that have successfully operated 
        homeless programs;
            (12) government restrictions and regulations may discourage 
        and impede innovative approaches to hopelessness, such as 
        coordination of the various types of assistance that are 
        required by homeless persons; and
            (13) the Federal Government has a responsibility to 
        establish partnerships with State and local governments and the 
        private sector to address comprehensively the problems of 
        hopelessness.
    (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 hopelessness, including alternative housing 
        strategies and an improved service sector;
            (3) to provide Federal assistance to reduce hopelessness 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 complementary 
        services necessary to meet the needs of the homeless 
        population; and
            (4) to ensure that multiple Federal agencies are involved 
        in the provision of housing, human services, employment, and 
        education assistance both through the funding provided for 
        implementation of the Stewart B. McKinney Homeless Assistance 
        Act and mainstream funding and to encourage entrepreneurial 
        approaches in the provision of housing for homeless people.

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', 
                `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', `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. FEDERAL EMERGENCY MANAGEMENT AGENCY FOOD AND SHELTER PROGRAM.

    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 
such sums as may be necessary for each of fiscal years 1998, 1999, 
2000, 2001, and 2002.''.

SEC. 5. PERMANENT HOUSING DEVELOPMENT AND FLEXIBLE BLOCK GRANT 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--PERMANENT HOUSING DEVELOPMENT AND FLEXIBLE BLOCK GRANT 
                      HOMELESS ASSISTANCE PROGRAM

                    ``Subtitle A--General Provisions

``SEC. 401. PURPOSE; PERFORMANCE MEASURES.

    ``(a) Purpose.--The purpose of the program under this title is to 
provide assistance for permanent housing development for homeless 
persons and promote the development of a comprehensive housing system 
that transitions homeless persons to live as independently as possible, 
including assistance in the form of permanent housing development, 
supportive housing, emergency shelters, supportive services, and 
activities to prevent hopelessness.
    ``(b) Performance Measures.--Consistent with the purposes and 
requirements of the Government Performance and Results Act of 1993, the 
programs under this title and the implementation of such programs by 
the Department of Housing and Urban Development shall comply with the 
following performance goals:
            ``(1) The Federal Government shall ensure an effective 
        grant allocation process and sound financial management of the 
        process. Such grant allocation process shall be implemented to 
        ensure that--
                    ``(A) local governments shall work with the 
                appropriate Local Board to create innovative plans 
                sufficient to address the needs of homeless people in 
                their community; and
                    ``(B) all eligible communities receive funds to 
                address the needs of homeless people in such 
                communities through local governments or private 
                nonprofit organizations.
            ``(2) The financial resources provided under this title 
        shall be used effectively to create more low-cost permanent 
        housing and to transition homeless people to self-sufficiency 
        and permanent housing.
            ``(3) The Federal Government shall use the Interagency 
        Council on the Homeless as a vehicle to coordinate services, 
        programs, and funds to promote the transition of homeless 
        people to self-sufficiency in permanent housing.

``SEC. 402. GRANT AUTHORITY.

    ``(a) In General.--The Secretary may make grants as provided under 
this title to eligible grantees for States, metropolitan cities and 
urban counties, consortia, and 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) Permanent housing development.--Any amounts allocated 
        under section 406(b) for use under subtitle B shall be used for 
        grants under section 406(b)(2) to States, metropolitan cities, 
        urban counties, and consortia for such fiscal year.
            ``(3) Flexible block grant homeless assistance.--Any 
        amounts allocated under section 406(c) for a State, 
        metropolitan city or urban county, or consortium shall be used 
        for a grant under section 406(c) to the eligible grantee for 
        the State, metropolitan city or urban county, or consortium 
        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) Permanent housing development grants.--In the case of 
        a grant under subsection (b)(2) to a State, metropolitan city 
        or urban county, or consortium, for eligible activities under 
        subtitle B within the State, metropolitan city or urban county, 
        or consortium, respectively.
            ``(3) Flexible block grant homeless assistance.--In the 
        case of a grant under subsection (b)(3) for a State, 
        metropolitan city or urban county, or consortium, for eligible 
        activities under subtitle C benefiting the State, city or 
        county, or consortium and carried out only within non 
        entitlement areas of the State, within the city or county, or 
        consortium, 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 for permanent housing development and flexible 
        assistance.--In the case of a grant from amounts allocated 
        under section 406(b) or 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, 
                respectively;
                    ``(B) a consortium of units of general local 
                governments which shall be deemed to be a metropolitan 
                city, but only if the Secretary determines that the 
                consortium--
                            ``(i) is comprised of units of general 
                        local government which are geographically 
                        contiguous (which may include all units of 
                        general local government within a State);
                            ``(ii) has sufficient authority and 
                        administrative capability to carry out the 
                        purposes of this title on behalf of its member 
                        jurisdictions; and
                            ``(iii) will, according to a written 
                        certification by the State (or States, if the 
                        consortium includes jurisdictions in more than 
                        one State) in which its member jurisdictions 
                        are located, direct its activities to 
                        alleviation of hopelessness problems within the 
                        State (or States); and
                    ``(C) to the extent that a private nonprofit 
                organization is authorized by the government of the 
                State or the city or county under subparagraph (B) to 
                act as the grantee for the State, or the city or 
                county, respectively, for purposes of this title, such 
                private nonprofit organization.

``SEC. 404. USE OF 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 and the project sponsor's experience in 
        successfully transitioning homeless persons into stable, long-
        term housing;
            ``(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, considered in relation to the ultimate goal of moving 
        people out of hopelessness permanently, including consideration 
        of high-cost area services, and other necessary amenities;
            ``(6) the extent to which the project sponsor carrying out 
        the eligible activity will coordinate with Federal, State, 
        local, and private entities serving homeless persons in the 
        development of a comprehensive housing system and in the 
        planning and operation of the activity, to the extent 
        practicable, and pursuant to section 408(m)(3) will carry out 
        the activity in coordination and conjunction with federally 
        funded activities for the homeless;
            ``(7) the extent to which the project sponsor employs 
        homeless persons or involves homeless persons or formerly 
        homeless persons in the operation and design of its programs; 
        and
            ``(8) 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 in 
        accordance with section 105 of the Cranston-Gonzalez National 
        Affordable Housing Act and any other requirement established by 
        the Secretary and which 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 Permanent Housing Development Grants Under 
Subtitle B.--
            ``(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 for use under 
        subtitle B, 30 percent of such funds (except that for fiscal 
        years 1998 and 1999, the Secretary shall allocate 25 percent of 
        such funds for use under such subtitle).
            ``(2) Grants.--Using the amounts allocated for use under 
        subtitle B for a fiscal year, the Secretary shall make grants 
        to States, metropolitan cities and urban counties, and 
        consortia pursuant to a national competition based on the 
        criteria specified in section 404(b) and in accordance with 
        such other factors as the Secretary determines to be 
        appropriate to carry out this title in an effective and 
        efficient manner.
            ``(3) Limitation.--In making grants using amounts allocated 
        for use under subtitle B for any fiscal year, the Secretary 
        shall ensure that not more than 35 percent of the total amount 
        allocated for such use for such fiscal year is used for 
        activities under section 441 of the Stewart B. McKinney 
        Homeless Assistance Act, as in effect on October 31, 1997.
    ``(c) Allocation for Flexible Block Grant Homeless Assistance Under 
Subtitle C.--
            ``(1) Annual portion of appropriated amount available for 
        subtitle c activities.--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 
        for use under subtitle C 70 percent of such funds (except that 
        for fiscal years 1998 and 1999, the Secretary shall allocate 75 
        percent of such funds for use under such subtitle).
            ``(2) Allocation of amount available between metropolitan 
        cities and urban counties and states.--Of the amount allocated 
        pursuant to paragraph (1) 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.
            ``(3) Interim determination of allocated amount.--Except as 
        provided in subparagraph (A) 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.
            ``(4) Minimum Appropriation 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--
                    ``(A) the Secretary shall not allocate amounts for 
                such fiscal year under subsection (b) and this 
                subsection;
                    ``(B) subsection (d) shall not apply to amounts for 
                such fiscal year; and
                    ``(C) 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 404(b).
            ``(5) Study; submission of information to congress related 
        to alternative methods of allocation.--Not later than 1 year 
        after the date of the enactment of the Homeless Housing Program 
        Consolidation and Flexibility Act, the Secretary shall--
                    ``(A) submit to Congress--
                            ``(i) the best available methodology for 
                        determining a formula relative to the 
                        geographic allocation of funds under this 
                        subtitle among entitlement communities and 
                        nonentitlement areas based on the incidence of 
                        homelessness and factors that lead to 
                        homelessness;
                            ``(ii) proposed alternatives to the formula 
                        submitted pursuant to clause (i) for allocating 
                        funds under this section, including an 
                        evaluation and recommendation on a 75/25 
                        percent allocation of flexible block grant 
                        homeless assistance between metropolitan cities 
                        and urban counties and States under paragraph 
                        (2);
                            ``(iii) an analysis of the deficiencies in 
                        the current allocation formula described in 
                        section 106(b) of the Housing and Community 
                        Development Act of 1974, and an analysis of the 
                        adequacy of current indices used as proxies for 
                        measuring homelessness; and
                            ``(iv) an analysis of the bases underlying 
                        each of the proposed allocation methods;
                    ``(B) perform the duties required by this paragraph 
                in ongoing consultation with--
                            ``(i) the Subcommittee on Housing 
                        Opportunity and Community Development of the 
                        Committee on Banking, Housing, and Urban 
                        Affairs of the Senate;
                            ``(ii) the Subcommittee on Housing and 
                        Community Opportunity of the Committee on 
                        Banking and Financial Services of the House of 
                        Representatives;
                            ``(iii) organizations representing States, 
                        metropolitan cities and urban counties;
                            ``(iv) organizations representing rural 
                        communities;
                            ``(v) organizations representing veterans;
                            ``(vi) organizations representing persons 
                        with disabilities;
                            ``(vii) members of the academic community; 
                        and
                            ``(viii) national homelessness advocacy 
                        groups; and
                    ``(C) estimate the amount of funds that will be 
                received annually by each entitlement community and 
                nonentitlement area under each such alternative 
                allocation system and compare such amounts to the 
                amount of funds received by each entitlement community 
                and nonentitlement area in prior years under this 
                section.
            ``(6) Minimum grant amount.--Notwithstanding paragraph (3), 
        a State or metropolitan city or urban county shall receive no 
        less funding under this subsection in the first full fiscal 
        year after the date of the enactment of the Homeless Housing 
        Programs Consolidation and Flexibility Act than 90 percent of 
        the average of the amounts awarded annually to that 
        jurisdiction for homeless assistance programs administered by 
        the Secretary (not including allocations for shelter plus care 
        and single room occupancy programs as defined in, and in effect 
        pursuant to, this Act prior to the date of the enactment of the 
        Homeless Housing Programs Consolidation and Flexibility Act) 
        under this title during fiscal years 1994 through 1997, no less 
        than 85 percent in the second full fiscal year after the date 
        of the enactment of the Homeless Housing Programs Consolidation 
        and Flexibility Act, no less than 80 percent in the third and 
        fourth full fiscal years after the date of the enactment of the 
        Homeless Housing Programs Consolidation and Flexibility Act, 
        and no less than 75 percent in the fifth full fiscal year after 
        the date of the enactment of the Homeless Housing Programs 
        Consolidation and Flexibility Act, but only if the amount 
        appropriated pursuant to section 435 in each such fiscal year 
        exceeds $800,000,000. If that amount does not exceed 
        $800,000,000 in any fiscal year referred to in the first 
        sentence of this paragraph, the jurisdiction may receive its 
        proportionate share of the amount appropriated which may be 
        less than the amount stated such sentence for such fiscal year.
            ``(7) Minimum state allocation.--Notwithstanding paragraphs 
        (3) and (6), if in any fiscal year the allocation for a State 
        is less than $2,000,000, the allocation for that State shall be 
        increased to $2,000,000 and the increase shall be provided by 
        deducting pro rata amounts from the allocations of States with 
        allocations of more than $2,000,000.
            ``(8) Reduction.--Notwithstanding paragraphs (1) through 
        (7), in any fiscal year, the Secretary may provide a grant 
        under this subsection for a State or metropolitan city or urban 
        county, in an amount less than the amount allocated under those 
        paragraphs, if the Secretary determines that the jurisdiction 
has failed to comply with requirements of this title, or that such 
action is otherwise appropriate.
    ``(d) Recapture of Allocated Amounts.--The Secretary shall 
recapture the following amounts:
            ``(1) Unused amounts.--Not less than once during each 
        fiscal year, the Secretary shall recapture 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.
            ``(2) Amounts allocated to grantees that fail to comply 
        with comprehensive housing affordability strategy 
        requirements.--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) Reallocation of Amounts.--Any amounts allocated under 
subsection (b) that are recaptured pursuant to subsection (d)(1) shall 
be reallocated only for use under subtitle B. Any amounts allocated 
under subsection (c) that are recaptured pursuant to subsection (d)(1) 
shall be reallocated only for use under subtitle C.

``SEC. 407. MATCHING FUNDS REQUIREMENT.

    ``(a) In General.--Each State, metropolitan city or urban county, 
and insular area for which a grant under this title is made shall 
supplement the amount of the grant provided under this title with an 
amount that is not less than--
            ``(1) 50 percent of the amount of such grant, if the State, 
        metropolitan city or urban county, and insular area has 
        indicated in its application for such grant that it will not 
        include as a portion of its supplementation the cost or value 
        of donated services; or
            ``(2) 100 percent of the grant amount, if the State, 
        metropolitan city or urban county, and insular area indicated 
        in its application for such grant that it will include as a 
        portion of its supplementation the cost or value of donated 
        services.
    ``(b) Matching Requirement for Use of More Than 35 Percent of Funds 
for Supportive Services.--In addition to the supplemental funds 
required pursuant to subsection (a), for the second full fiscal year 
after the date of the enactment of the Homeless Housing Programs 
Consolidation and Flexibility Act and each fiscal year thereafter, a 
State, consortium, or metropolitan city or urban county shall 
supplement the grant funds for the State, consortium, city or county in 
an amount equal to the amount used by that State, metropolitan city or 
urban county, or consortium for supportive services in a fiscal year 
that exceeds 35 percent of the total grant amount for the State, 
metropolitan city or urban county, or consortium for that fiscal year.
    ``(c) Treatment of Independent State or Local Government Funds.--
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 may be counted toward the amount required pursuant to 
subsection (a).
    ``(d) Authority for Grantees To Require Supplementation.--
            ``(1) In general.--Each grantee under this title may 
        require any subgrantee or project sponsor to whom it provides 
        such grant amounts to provide supplemental amounts required 
        under subsections (a) and (b) with an amount of funds from 
        sources other than this title.
            ``(2) Amount allowed to be required by grantee.--
                    ``(A) Grant amount.--Except as provided in 
                paragraph (3), a grantee may not require any subgrantee 
                or project sponsor to whom it provides such grant 
                amounts under this title to provide--
                            ``(i) supplemental amounts required under 
                        subsection (a)(1) in an amount exceeding 25 
                        percent of the grant amount provided to the 
                        grantee or project sponsor; or
                            ``(ii) supplemental amounts required under 
                        subsection (a)(2) in an amount exceeding 50 
                        percent of the grant amount provided to the 
                        grantee or project sponsor.
                    ``(B) Supportive services.--A grantee may require 
                any subgrantee or project sponsor to whom it provides 
                grant amounts under this title to provide supplemental 
                amounts required under subsection (b) in an amount 
                equal to the amount used by subgrantee or project 
                sponsor for supportive services in a fiscal year that 
                exceeds 35 percent of the total amount allocated 
                pursuant to this subsection for that fiscal year.
            ``(3) Supplemental funds may be considered as matching 
        funds.--Supplemental amounts provided by a subgrantee or 
        project sponsor pursuant to this subsection may be considered 
        supplemental amounts for purposes of compliance by any grantee 
        with the requirement under subsections (a) and (b).
    ``(e) Use of Funds.--Any supplemental funds made available in 
compliance with this section shall be available only to carry out 
eligible activities (1) under 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.
    ``(f) Supplemental Funds.--In determining the amount of 
supplemental funds provided in accordance with this section, the 
following amounts may be included:
            ``(1) Cash.
            ``(2) The value of any donated or purchased material or 
        building.
            ``(3) The value of any lease on a building.
            ``(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 the activity assisted under this title.
            ``(5) The amount of any salary paid to staff to carry out a 
        program for eligible activities under subtitle B or C.
            ``(6) The cost or value of any donated goods.
            ``(7) The value of taxes, fees, or other charges that are 
        normally and customarily imposed, but which are waived or 
        foregone to assist in providing housing or services for the 
        homeless.
            ``(8) The cost of on-site and off-site infrastructure that 
        is directly related to and necessary for providing housing or 
        services for the homeless.
            ``(9) The cost or value of any donated services, but only 
        if the State, metropolitan city or urban county, and insular 
        area has stated in its application for a grant under this title 
        that it shall supplement the amount of such grant, in 
        accordance with section 407(a)(2).
    ``(g) Reduction in matching requirements.--
            ``(1) In general.--The Secretary shall reduce the matching 
        requirement under subsection (a) during a fiscal year by--
                    ``(A) 50 percent for a jurisdiction that certifies 
                that it is in fiscal distress; and
                    ``(B) 100 percent for a jurisdiction that certifies 
                that it is in severe fiscal distress.
        For purposes of subparagraphs (A) and (B), the jurisdiction 
        shall make the certification on behalf of a recipient that is 
        not a governmental jurisdiction.
            ``(2) Definitions.--For purposes of this subsection--
                    ``(A) the term `fiscal distress' means, with 
                respect to a unit of general local government, insular 
                area, or State recipient that is a governmental 
                jurisdiction, that the jurisdiction satisfies one of 
                the distress criteria set forth in paragraph (3); and
                    ``(B) the term `severe fiscal distress' means, with 
                respect to a unit of general local government, insular 
                area, or State recipient that is a governmental 
                jurisdiction, that the jurisdiction satisfies both of 
                the distress criteria set forth in paragraph (3).
            ``(3) Distress criteria.--For a unit of general local 
        government, an insular area, or a State recipient that is a 
        governmental jurisdiction certifying that it is distressed, the 
        following criteria shall apply:
                    ``(A) Poverty rate.--The average poverty rate in 
                the jurisdiction for the calendar year immediately 
                preceding the year in which its fiscal year begins was 
                equal to or greater than 125 percent of the average 
                national poverty rate during such calendar year (as 
                determined according to information of the Bureau of 
                the Census).
                    ``(B) Per capita income.--The average per capita 
                income in the jurisdiction for the calendar year 
                immediately preceding the year in which its fiscal year 
                begins was less than 75 percent of the average national 
                per capita income during such calendar year (as 
determined according to information of the Bureau of the Census).
            ``(4) States.--In the case of a State, the Secretary shall 
        reduce the matching requirement under subsection (a) as 
        provided by the preceding paragraphs, except that the 
        certification shall be made with respect to the area, as 
        determined by the Secretary, in which the activities are to be 
        carried out.
            ``(5) Waiver in disaster areas.--If a recipient is located 
        in an area in which a declaration of a disaster pursuant to the 
        Robert T. Stafford Disaster Relief and Emergency Assistance Act 
        is in effect for any part of a fiscal year, the Secretary may 
        reduce the matching requirement for that fiscal year under 
        subsection (a) during that fiscal year by up to 100 percent.

``SEC. 408. PROGRAM REQUIREMENTS.

    ``(a) Applications.--
            ``(1) Form and procedure.--The Secretary shall 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 permanent housing development 
                activities.--In the case of an application for a grant 
                available for use for activities under subtitle B or an 
                application for a grant available for use under 
                subtitle C for permanent housing development 
                assistance--
                            ``(i) a description of the permanent 
                        housing development activities to be assisted;
                            ``(ii) a description of the entities that 
                        will carry out such activities and the programs 
                        for carrying out such activities; and
                            ``(iii) assurances satisfactory to the 
                        Secretary that the facility will comply with 
                        the requirement under subsection (j).
                    ``(B) Flexible block grant 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 comply with 
                        the requirement under subsection (j);
                            ``(iii) in the case of a grant for a 
                        supportive housing facility assisted under this 
                        title that does not receive assistance under 
                        paragraph (1) or (2) of section 421(a), 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 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, including 
                        specific references to populations with special 
                        needs, 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;
                            ``(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; and
                            ``(v) a statement of whether the applicant 
                        will or will not include, as a portion of its 
                        supplementation amount required under section 
                        407(a), the cost or value of donated services.
    ``(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.--Any homeless person or family residing in 
a dwelling unit assisted under this title 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 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 Citizens and Others.
            ``(1) In general.--Each grantee shall--
                    ``(A) each fiscal year, 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) each fiscal year, 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 grantee may 
                have received under this subtitle during the preceding 
                5 years.
            ``(2) Electronic access.--A grantee may comply with the 
        requirement under subparagraphs (A), (B), and (D) of paragraph 
        (1) by making the information available through interactive 
        computer or telephone services or other electronic information 
        networks and systems appropriate for making such information 
        widely available to the public.
            ``(3) Notice and comment.--Before submitting any 
        substantial amendment to an application under this Act, a 
        grantee shall provide citizens with reasonable notice of, and 
        opportunity to comment on, the amendment.
            ``(4) Consideration of comments.--A grantee shall consider 
        any comments or views of citizens in preparing a final 
        application or amendment to an application for submission. A 
        summary of such comments or views shall be attached when an 
        application or amendment to an application is submitted. The 
        submitted application or amendment shall be made available to 
        the public.
            ``(5) 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 under this subtitle.
            ``(6) 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 persons 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 for administrative purposes--
            ``(1) an amount not exceeding 5 percent of such grant 
        amount; or
            ``(2) if the grantee implements use of a standardized 
        homeless database management system to record and assess data 
        on the usage of homeless housing, services, and client needs, 
        and on the number and other information related to populations 
        with special needs, an amount not exceeding 7.5 percent of such 
        grant amount.
    ``(h) Housing Quality.--
            ``(1) Requirement.--Assistance may not be provided with 
        grant amounts made available for use under this title for any 
        permanent housing development, 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 permanent housing, a 
        dwelling unit, supportive housing facility, or emergency 
        shelter shall be--
                    ``(A) in the case of permanent housing, a unit, 
                facility, or shelter located in a jurisdiction which 
                has in effect laws, regulations, standards, or codes 
                regarding habitability of such housing, 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 permanent housing, 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 permanent housing, 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 permanent housing, 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 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) Use Restrictions.--
            ``(1) Acquisition, rehabilitation, and new construction.--
                    ``(A) In general.--Except as provided in 
                subparagraph (B), each housing facility assisted under 
                subtitle B or subtitle C shall be operated as 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) Exceptions.--
                            (i) Inability to operate facility.--If, 
                        within such 20-year period, the need for 
                        maintaining the facility as housing for the 
                        purpose specified in the application for 
                        assistance 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).
                            ``(ii)  Applicability of other program 
                        restriction.--If the housing facility receives 
                        assistance under any other Federal program 
                        (including assistance under section 42 of the 
                        Internal Revenue Code of 1986) for low-income 
                        families, homeless person, or any other use 
                        consistent with assistance under this title, 
                        and the use restriction under such program is 
                        less than 20 years, the restriction under such 
                        program shall apply.
            ``(2) Other assistance.--Each housing facility assisted 
        under subtitle C 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 housing facility is no 
        longer needed for use as housing for the purposes specified in 
        the application for assistance 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.
    ``(k) Repayment of Assistance and Prevention of Undue Benefits.--
            ``(1) Repayment.--If a facility assisted under subtitle B 
        or subtitle C violates the requirement under subsection 
        (j)(1)(A) or (j)(1)(B)(ii) 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 grant 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 subtitle B or C 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 
        families if all of the proceeds are used to provide housing 
        meeting the requirements of subtitle B or C.
            ``(4) Failure to obtain site.--If a grantee of assistance 
        made available for use under this title obligates assistance 
        for a 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 facility 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.
    ``(l) Local Boards.--
            ``(1) Establishment and function.--The head of the 
        executive branch of government of each grantee shall establish 
        and appoint members to a local board, which shall assist the 
        jurisdiction in--
                    ``(A) determining whether the grant should be 
                administered by the jurisdiction, a public agency, a 
                private nonprofit organization, the State, or the 
                Secretary;
                    ``(B) developing the application under section 408;
                    ``(C) overseeing the activities carried out with 
                assistance under this title; and
                    ``(D) preparing the performance report under 
                section 431.
            ``(2) Composition of local boards.--
                    ``(A) Nomination.--Members of a local board 
                appointed to meet the requirements of subparagraph (D) 
                shall be nominated by persons, other than governmental 
                officials or entities, that represent the groups listed 
                in subparagraph (D).
                    ``(B) Priority.--Persons who will improve access to 
                a broad range of services for homeless persons and who 
                are sensitive to the varying needs of homeless persons, 
                including veterans, the mentally ill, families with 
                children, young persons, battered spouses, victims of 
                substance abuse, and persons with AIDS, shall be given 
                preference when selecting local board members.
                    ``(C) Community support considered.--In appointing 
                members to the local board, the chief executive of each 
                grantee shall consider the extent of support for the 
                nominee in the community which the board shall serve.
                    ``(D) Majority.--Not less than 51 percent of the 
                members of a local board shall be composed of--
                            ``(i) homeless or formerly homeless 
                        persons;
                            ``(ii) persons who act as advocates for 
                        homeless persons; and
                            ``(iii) persons who provide assistance to 
                        homeless persons, including representatives of 
                        local veterans organizations and veteran 
                        service providers who assist homeless veterans.
                    ``(E) Other local board members.--After the 
                requirements of subparagraph (D) are met, other members 
                of a local board shall be chosen from--
                            ``(i) members of the business community of 
                        the jurisdiction receiving the grant;
                            ``(ii) members of neighborhood advocates in 
                        the jurisdiction receiving the grant; and
                            ``(iii) government officials of the 
                        jurisdiction receiving the grant.
            ``(3) Waiver of requirements for local board.--The 
        Secretary may waive the requirements of this subsection if the 
        jurisdiction has an existing board that substantially meets the 
        requirements of this subsection.
    ``(m) Coordination of 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) In general.--The Chairperson of the Interagency 
        Council on the Homeless shall consult and coordinate with 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 and shall ensure that assistance 
        for federally funded activities for the homeless 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, including homeless 
        veterans, 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, including 
                homeless veterans, and families under State programs 
                funded under supplemental security income programs 
                under part A of title IV or under title XVI 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 
                Chairperson of the Interagency Council on the Homeless 
                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)), the 
                Chairperson of the Interagency Council on the Homeless 
                and the Secretary, in consultation with the Interagency 
                Council on the Homeless, 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.
                    ``(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, of the 
                        amount made available for such fiscal year for 
                        each activity referred to in paragraph (4), 10 
                        percent of such amount, as determined by the 
                        Secretary and the Interagency Council on 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.
                    ``(D) Transfer authority.--Except to the extent 
                that the authority of the Secretary and the Chairperson 
                of the Interagency Council on the Homeless is limited 
                by appropriations, and with the concurrence of the head 
                of the affected agency and upon advance approval of the 
                Committees on Appropriations and the authorizing 
                committees of the House of Representatives, and the 
                Senate, the Secretary and the Chairperson of the 
                Interagency Council on the Homeless shall transfer 
                funds made available under subparagraph (C) to the 
                companion services block grant for federally funded 
                activities, functions, or programs for the homeless.
                    ``(E) Report.--Not later than the first quarter of 
                the first full fiscal year after the date of the 
                enactment of the Homeless Housing Programs 
                Consolidation and Flexibility Act and each quarter 
                thereafter, the Secretary and the Chairperson of the 
                Interagency Council on the Homeless shall report to 
                Congress on--
                            ``(i) the need for any reprogramming or 
                        transfer of funds appropriated for federally 
                        funded activities, functions, or programs for 
                        the homeless; and
                            ``(ii) any funds appropriated for federally 
                        funded activities, functions, or programs for 
                        the homeless that were reprogrammed or 
                        transferred during the quarter covered by the 
                        report.
    ``(n) Consultation Regarding Use of National Guard Facilities as 
Homeless Shelters.--The Secretary may not provide a grant for a fiscal 
year from amounts for such year allocated under section 406(c) for use 
under subtitle C for a State unless the State has, consulted with the 
Secretary regarding the possibility of making any space at National 
Guard facilities under the jurisdiction of the State available, during 
such fiscal year, for use by homeless organizations to provide shelter 
to homeless persons, but only at the times that such space is not 
actively being used for National Guard purposes or other public 
purposes already undertaken.

``SEC. 409. SUPPORTIVE SERVICES.

    ``(a) Requirement.--To the extent allowed by this title, each 
project sponsor administering permanent housing development 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) Targeting Populations With Special Needs.--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), veterans who are homeless, 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 permanent housing development 
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.

``SEC. 410. NONDISCRIMINATION IN PROGRAMS AND ACTIVITIES.

    No person in the United States shall on the basis 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.

         ``Subtitle B--Permanent Housing Development Activities

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

    ``(a) Use of Amounts for Permanent Housing Development.--
            ``(1) Authorized use.--A State, metropolitan city, or urban 
        county that receives a grant under section 402(b)(2) from 
        amounts allocated for use under this subtitle may use grant 
        amounts (and any supplemental amounts provided under section 
        407) only to carry out permanent housing development activities 
        within such State, metropolitan city, or urban county. For 
        purposes of this subtitle, the term `permanent housing 
        development activities' means activities to construct, 
        substantially rehabilitate, or acquire structures to provide 
        permanent housing, including the capitalization of a dedicated 
        project account from which long-term assistance payments (which 
        may include operating costs or rental assistance) can be made 
        in order to facilitate such activities, and activities under 
        section 441 of the Stewart B. McKinney Homeless Assistance Act, 
        as in effect on October 31, 1997 (subject to the limitation in 
        section 406(b)(3) of this Act).
            ``(2) Use for supportive services prohibited.--Amounts 
        allocated for use under this subtitle may not be used for 
        supportive services activities.
    ``(b) Use Through Nonprofit Organizations.--
            ``(1) In general.--A grantee 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 grantee shall 
        ensure that more than 50 percent of the amounts received by the 
        grantee for the fiscal year are used through private nonprofit 
        organizations.
            ``(2) Waiver of use of nonprofit requirement.--The 
        Secretary may waive the requirement under paragraph (1) that a 
        grantee ensure that more than 50 percent of the amounts 
        received by the grantee for the fiscal year are used through 
        private nonprofit organizations if the Secretary determines 
        that there are not sufficient private nonprofit organizations 
        available to the grantee to meet that requirement.
    ``(c) Administrative Fee.--To the extent provided in section 
408(g), grant amounts provided 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 grantee shall provide for use of grant amounts 
made available under this subtitle in a manner that provides permanent 
housing for homeless persons with disabilities, homeless persons with 
acquired immunodeficiency syndrome or related diseases, homeless 
persons who have chronic problems with alcohol or drugs (or both), 
homeless families with children, and veterans who are homeless.

``SEC. 412. PERMANENT HOUSING DEVELOPMENT.

    ``(a) In General.--Housing shall be considered permanent housing 
for purposes of this title if the housing--
            ``(1) provides long-term housing for homeless persons;
            ``(2) complies with any applicable State and local housing 
        codes, licensing requirements, or other requirement in the 
        jurisdiction in which the housing is located, including any 
        applicable State or local requirements regarding the number of 
        occupants in such a facility; and
            ``(3) complies with the requirement under section 409(a) 
        regarding providing supportive services for homeless persons.
    ``(b) Clarification.--Permanent housing may--
            ``(1) be restricted for occupancy by homeless persons with 
        disabilities;
            ``(2) consist of or contain full dwelling units or dwelling 
        units that do not contain bathrooms or kitchen facilities; and
            ``(3) be provided in the form of rental housing, 
        cooperative housing, shared living arrangements, single family 
        housing, or other types of housing arrangements.

         ``Subtitle C--Flexible Block Grant Homeless Assistance

``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 or 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.--
                    ``(A) In general.--For activities designed to help 
                persons (including veterans who are at risk of becoming 
                homeless, 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.
                    ``(B) Persons eligible for assistance.--Assistance 
                under this paragraph may be provided only to very low-
                income families who have received eviction (or mortgage 
                delinquency or foreclosure) notices or notices of 
                termination of utility services and who--
                            ``(i) are unable to make the required 
                        payments due to a sudden reduction in income;
                            ``(ii) need such assistance to avoid 
                        homelessness due to the eviction or termination 
                        of services; and
                            ``(iii) have a reasonable prospect of being 
                        able to resume payments within a reasonable 
                        period of time.
                    ``(C) Limitation.--Assistance under this paragraph 
                may be provided only if such assistance will not 
                supplant funding for preexisting homelessness 
                prevention activities from other services.
            ``(6) Permanent housing development activities.--For 
        providing permanent housing development activities as described 
        in subtitle B.
            ``(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.--To the extent provided in 
        section 406, for covering costs of supportive services provided 
        to homeless persons in connection with a permanent or 
        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, including nonprofit sponsors who are proposing project 
        applications for populations with special needs.
    ``(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).

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

    ``(a) In General.--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 are used for 
carrying out eligible activities under section 421 through project 
sponsors that are private nonprofit organizations.
    ``(b) Waiver.--The Secretary may waive the requirement under 
subsection (a) that a grantee ensure that more than 50 percent of the 
amounts received by the grantee for the fiscal year are used through 
private nonprofit organizations if the Secretary determines that there 
are not sufficient private nonprofit organizations available to the 
grantee to meet that requirement.

``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 as described 
                in section 412.
    ``(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) Single Room Occupancy Dwellings.--For purposes of this 
section, 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.
    ``(d) Safe Haven Housing.--For purposes of this section, supportive 
housing may be a structure or a clearly identifiable portion of a 
structure that--
                    ``(A) provides housing and low-demand services and 
                referrals for homeless individual with serious mental 
                illness--
                            ``(i) who are currently residing primarily 
                        in places not designed for, or ordinarily used 
                        as, a regular sleeping accommodation for human 
                        beings; and
                            ``(ii) who have been unwilling or unable to 
                        participate in mental health or substance abuse 
                        treatment programs or to receive other 
                        supportive services; except that a person whose 
                        sole impairment is substance abuse shall not be 
                        considered an eligible person;
                    ``(B) provides 24-hour residence for eligible 
                individuals who may reside for an unspecified duration;
                    ``(C) provides private or semi-private 
                accommodations;
                    ``(D) may provide for the common use of kitchen 
                facilities, dining rooms, and bathrooms;
                    ``(E) may provide supportive services to eligible 
                persons who are not residents on a drop-in basis; and
                    ``(F) provides occupancy limited to no more than 25 
                persons.

``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, veterans benefits, 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) to the extent practicable until the development of a 
        reasonable methodology by the Secretary and the Interagency 
        Council on the Homeless, describe the number of homeless 
        persons and families, including populations with special needs 
        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;
            ``(5) describe how the grantee would change its programs as 
        a result of its experiences; and
            ``(6) describe any delays that occurred in the start up of 
        programs and the reason for each delay.
    ``(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. The Secretary may withhold or 
reallocate funds granted to a grantee if the Secretary finds that the 
grantee has complied with applicable program requirements, but not 
substantially complied with the application that the grantee submitted 
to obtain such funds.
    ``(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.
    ``(e) Authority of Secretary.--The Secretary shall establish 
procedures appropriate and practicable for providing a fair hearing and 
timely resolution of citizen complaints related to performance reports 
under this section.

``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 interactive computer or telephone services or other 
electronic information networks and systems appropriate for making such 
information widely available to the public.

``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 
        are 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).
            ``(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) is 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 agent 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 or for persons or 
                        families at risk of becoming homeless.
            ``(12) Project sponsor.--The term `project sponsor' means 
        an entity that uses grant amounts under this title to carry out 
        a permanent housing development 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 families.--The term `very low-income 
        families' 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.

    ``(a) In General.--There are authorized to be appropriated for 
grants under this title $1,000,000,000 for each of fiscal years 1998, 
1999, 2000, 2001, and 2002.
    ``(b) Prohibition on Set Asides.--Notwithstanding any other 
provision of law, any attempt to put any restriction on the use of 
funds appropriated for this title (such as for use in special projects) 
shall be considered an appropriation without authorization and shall be 
without force or effect.''.
    (b) Applicability.--The provisions of the amendment made by 
subsection (a) shall apply with respect to fiscal year 1998 and each 
fiscal year thereafter.

SEC. 6. INTERAGENCY COUNCIL ON THE HOMELESS.

    (a) Chairperson and Vice 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 a 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 Homeless Housing Programs Consolidation and Flexibility 
        Act.
            ``(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.
            ``(3) Notwithstanding paragraphs (1) and (2), the first 
        Chairperson elected after the date of the enactment of the 
        Homeless Housing Programs Consolidation and Flexibility Act may 
        not be the Secretary of Housing and Urban Development.''.
    (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.

    ``Of any amounts made available in any fiscal year to carry out 
this Act, 0.0012 of such amounts shall be available to carry out this 
title.''.
    (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, 2002''.
    (d) Repeal.--Section 210 of the Stewart B. McKinney Homeless 
Assistance Act (42 U.S.C. 11320) is hereby repealed.

SEC. 7. INVENTORY OF FEDERAL FACILITIES SUITABLE FOR OVERNIGHT SHELTER 
              FOR HOMELESS PERSONS.

    (a) Identification.--Not later than 30 days after the date of the 
enactment of this Act, the Secretary of Housing and Urban Development 
shall request, from the head of each executive agency, information that 
identifies each covered facility (or any parts thereof) under the 
control of the executive agency that is suitable for use as temporary 
overnight shelter for homeless persons.
    (b) Consultation.--At the request of the head of any executive 
agency, the Secretary shall consult with such agency head regarding 
whether facilities of the agency, or a particular facility or 
facilities, are covered facilities or are suitable for use as temporary 
overnight shelter for homeless persons.
    (c) Compilation and Publication.--Not later than 60 days after the 
date of the enactment of this Act, the Secretary shall compile the 
information submitted pursuant to subsection (a) and cause the compiled 
information to be published in the Federal Register a list of all 
covered facilities identified as suitable for use as temporary 
overnight shelter for homeless persons.
    (d) Definitions.--For purposes of this section, the following 
definitions shall apply:
            (1) Covered facility.--The term ``covered facility'' means 
        any building, structure, land, or other real property that, in 
        the determination of the head of the Federal agency having 
        control of the property, using standards that shall be 
        established by the Secretary, reasonably could be made 
        available for the use described in subsection (a) without 
        substantial conflict with any other existing, expected, or 
        potential use of the property to carry out the mission of the 
        agency.
            (2) Executive agency.--The term ``executive agency'' has 
        the meaning given such term in section 105 of title 5, United 
        States Code.
            (3) Homeless person.--The term ``homeless person'' has the 
        meaning given such term in section 102 of the Stewart B. 
        McKinney Homeless Assistance Act (42 U.S.C. 11302).
            (4) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.

SEC. 8. 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 grantees 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--PERMANENT HOUSING DEVELOPMENT AND FLEXIBLE BLOCK GRANT 
                      HOMELESS ASSISTANCE PROGRAM

                    ``Subtitle A--General Provisions

``Sec. 401. Purpose; performance measures.
``Sec. 402. Grant authority.
``Sec. 403. Eligible grantees.
``Sec. 404. Use of 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.
``Sec. 410. Nondiscrimination in programs and activities.

         ``Subtitle B--Permanent Housing Development Activities

``Sec. 411. Use of amounts and general requirements.
``Sec. 412. Permanent housing development.

         ``Subtitle C--Flexible Block Grant Homeless Assistance

``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. 9. 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. 10. 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.