[Congressional Bills 105th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2307 Introduced in House (IH)]

  1st Session
                                H. R. 2307

 To facilitate the effective and efficient management of the homeless 
assistance programs of the Department of Housing and Urban Development, 
 including the merger of such programs into one performance fund, and 
                          for other purposes.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             July 30, 1997

  Mr. Kennedy of Massachusetts (by request) introduced the following 
  bill; which was referred to the Committee on Banking and Financial 
                                Services

_______________________________________________________________________

                                 A BILL


 
 To facilitate the effective and efficient management of the homeless 
assistance programs of the Department of Housing and Urban Development, 
 including the merger of such programs into one performance fund, and 
                          for other purposes.

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

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

    (a) Short Title.--This Act may be cited as the ``Homelessness 
Assistance and Management Reform Act of 1997''.
    (b) Table of Contents.

Sec. 1. Short title and table of contents.
             TITLE I--HOMELESS ASSISTANCE PERFORMANCE FUND

Sec. 2. Findings and purposes.
Sec. 3. Establishment of the homeless assistance performance fund.
Sec. 4. Repeal and savings provisions.
Sec. 5. Implementation.
Sec. 6. Report.
Sec. 7. Conforming changes to table of contents.
 TITLE II--MANAGEMENT IMPROVEMENTS: HOME AND HOPE FOR HOMEOWNERSHIP OF 
                      SINGLE FAMILY HOMES PROGRAMS

Sec. 11. Determination of low-income eligibility for HOME homeownership 
                            assistance.
Sec. 12. Stabilization of HOME funding thresholds and revision of 
                            timing requirements for notifications and 
                            submissions.
Sec. 13. Determination of HOME match on program year basis.
Sec. 14. Tenant and participant protections under the HOME program.
Sec. 15. Eligibility of private property under the HOPE for 
                            homeownership of single family homes 
                            program.

             TITLE I--HOMELESS ASSISTANCE PERFORMANCE FUND

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds that--
            (1) more Americans are homeless than at any time since the 
        Great Depression;
            (2) the homeless population across the Nation is diverse 
        and its characteristics differ by locality, thereby placing 
        localities in the best position to determine the homeless needs 
        for their communities;
            (3) the different needs within the homeless population call 
        for a continuum of care system which encompasses the need for 
        outreach and assessment, emergency assistance, transitional 
        housing and services (where needed), and permanent housing or 
        permanent supportive housing to help homeless individuals 
        become more self-sufficient; and
            (4) the separate Federal programs designed to solve 
        specific homeless problems have different distribution 
        mechanisms, rules, and reporting requirements that--
                    (A) exceed the resources available to the 
                Secretary, States and local governments, and nonprofit 
                homeless providers;
                    (B) restrict the flexibility of communities to 
                fashion comprehensive homeless assistance systems that 
                meet the needs of homeless individuals in their areas;
                    (C) result in unpredictable funding streams that 
                hinder the ability of communities and service providers 
                to plan, develop, and implement comprehensive systems 
                to assist homeless individuals and families; and
                    (D) impede the integration and coordination of 
                Federal, State, and local government and private for-
                profit resources available within a community.
    (b) Purposes.--The purposes of this title are to facilitate the 
effective and efficient management of HUD's homeless assistance 
programs by--
            (1) reducing and preventing homelessness by supporting the 
        creation and maintenance of community-based, comprehensive 
        systems dedicated to returning families and individuals to 
        self-sufficiency;
            (2) reorganizing the homeless housing assistance 
        authorities under the Stewart B. McKinney Homeless Assistance 
        Act into a Homeless Assistance Performance Fund;
            (3) assisting States and local governments, in partnership 
        with private nonprofit service providers, to use homeless 
        funding more efficiently and effectively;
            (4) simplifying and making more flexible the provision of 
        Federal homeless assistance;
            (5) maximizing a community's ability to implement a 
        coordinated, comprehensive system for providing assistance to 
        homeless families and individuals;
            (6) making more efficient and equitable the manner in which 
        the Secretary distributes homeless assistance;
            (7) reducing the Federal role in local decisionmaking for 
        homeless assistance programs;
            (8) reducing the costs to governmental jurisdictions and 
        private nonprofit organizations in applying for and using 
        assistance; and
            (9) advancing the goal of meeting the needs of the homeless 
        population through mainstream programs and establishing 
        continuum of care systems necessary to achieve that goal.

SEC. 3. ESTABLISHMENT OF THE HOMELESS ASSISTANCE PERFORMANCE FUND.

    Title IV of the Stewart B. McKinney Homeless Assistance Act is 
amended by striking the title heading and all that follows through the 
end of the title and inserting the following:

            ``TITLE IV--HOMELESS ASSISTANCE PERFORMANCE FUND

``SEC. 401. DEFINITIONS.

    For purposes of this title the following definitions shall apply--
            ``(1) Allocation unit of general local government.--
                    ``(A) In general.--The term `allocation unit of 
                general local government' means a metropolitan city or 
                an urban county.
                    ``(B) Consortia.--The term `allocation unit of 
                general local government' may include a consortium of 
                geographically contiguous metropolitan cities and urban 
                counties, if the Secretary determines that the 
                consortium--
                            ``(i) has sufficient authority and 
                        administrative capability to carry out the 
                        purposes of this title on behalf of its member 
                        jurisdictions; and
                            ``(ii) will, according to a written 
                        certification by the State (or States, if the 
                        consortium includes jurisdictions in more than 
                        one State), direct its activities to the 
                        implementation of a continuum of care system 
                        within the State or States.
            ``(2) Applicant.--The term `applicant' means a grantee 
        submitting an application under section 403.
            ``(3) Consolidated plan.--The term `consolidated plan' 
        means the single comprehensive plan that the Secretary 
        prescribes for submission by jurisdictions that consolidates 
        and fulfills the requirements of--
                    ``(A) the comprehensive housing affordability 
                strategy under title I of the Cranston-Gonzalez 
                National Affordable Housing Act;
                    ``(B) the community development plan under section 
                104 of the Housing and Community Development Act of 
                1974; and
                    ``(C) the submission requirements for formula 
                funding under--
                            ``(i) the Community Development Block Grant 
                        program (authorized by title I of the Housing 
                        and Community Development Act of 1974);
                            ``(ii) the HOME program (authorized by 
                        title II of the Cranston-Gonzalez National 
                        Affordable Housing Act);
                            ``(iii) the Homeless Assistance Performance 
                        Fund (authorized under this title); and
                            ``(iv) the AIDS Housing Opportunity Act 
                        (authorized by subtitle D of title VIII of the 
                        Cranston-Gonzalez National Affordable Housing 
                        Act).
        A jurisdiction's consolidated plan shall be coordinated and 
        consistent with a public housing agency's five-year 
        comprehensive plan, if any, required under section 14(e) of the 
        United States Housing Act of 1937.
            ``(4) Continuum of care system.--A `continuum of care 
        system' is a system developed by a local or State homeless 
        assistance board. The system shall include--
                    ``(A) a system of outreach and assessment, 
                including drop-in centers, 24-hour hotlines, 
                counselors, and other activities designed to engage 
                homeless individuals and families, bring them into the 
                continuum of care system, and determine their 
                individual housing and service needs;
                    ``(B) emergency shelters with essential services to 
                ensure that homeless individuals and families receive 
                shelter;
                    ``(C) transitional housing with appropriate 
                supportive services to help ensure that homeless 
                individuals and families are prepared to make the 
                transition to increased responsibility and permanent 
                housing;
                    ``(D) permanent housing, or permanent supportive 
                housing, to help meet the long-term housing needs of 
                homeless individuals and families;
                    ``(E) coordination between assistance provided 
                under this title and assistance provided under other 
                Federal, State, and local programs that may be used to 
                assist homeless individuals and families, including 
                both targeted homeless assistance programs and other 
                programs administered by the Departments of Veterans 
                Affairs, Labor, Health and Human Services, and 
                Education; and
                    ``(F) a system of referrals for subpopulations of 
                the homeless (such as homeless veterans, families with 
                children, battered spouses, persons with mental 
                illness, persons who have chronic problems with 
                alcohol, drugs, or both, persons with other chronic 
                health problems, and persons who have acquired 
                immunodeficiency syndrome and related diseases) to the 
                appropriate agencies, programs, or services (including 
                health care, job training, and income support) 
                necessary to meet their needs.
            ``(5) Grantee.--The term `grantee' means--
                    ``(A) an allocation unit of general local 
                government or insular area that administers a grant 
                under section 408(b)(1);
                    ``(B) an allocation unit of general local 
                government or insular area that designates a public 
                agency or a private nonprofit organization (or a 
                combination of such organizations) to administer grant 
                amounts under section 408(b)(2);
                    ``(C) a State or a private nonprofit organization 
                designated by the Secretary to administer grant amounts 
                under section 408(b)(3)(A);
                    ``(D) a private nonprofit organization receiving 
                grant amounts distributed by the Secretary under 
                section 408(b)(3)(B);
                    ``(E) a State administering a grant under section 
                408(c)(1)(A);
                    ``(F) a unit of general local government receiving 
                a grant from the Secretary under section 408(c)(4)(A);
                    ``(G) a public agency or private nonprofit 
                organization (or a combination of such organizations) 
                designated by a unit of general local government to 
                administer a grant from the Secretary under section 
                408(c)(4)(B); or
                    ``(H) a private nonprofit organization receiving a 
                grant from the Secretary under section 408(c)(4)(C).
            ``(6) Homeless individual.--The term `homeless individual' 
        has the same meaning as in section 103 of this Act.
            ``(7) Insular area.--The term `insular area' means the 
        Virgin Islands, Guam, American Samoa, and the Northern Mariana 
        Islands.
            ``(8) Local homeless assistance board.--The term `local 
        homeless assistance board' means the board established for 
        applicants and grantees under section 409(c) or 409(e).
            ``(9) Low-demand services and referrals.--The term `low-
        demand services and referrals' means the provision of health 
        care, mental health, substance abuse, and other supportive 
        services and referrals for services in a non-coercive manner, 
        which may include medication management, education, counseling, 
        job training, and assistance in obtaining entitlement benefits 
        and in obtaining other supportive services, including mental 
        health and substance abuse treatment.
            ``(10) Metropolitan city.--The term `metropolitan city' has 
        the same meaning as in section 102(a) of the Housing and 
        Community Development Act of 1974.
            ``(11) 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, as determined by the 
                Secretary, a physical, mental, or emotional impairment 
                which--
                            ``(i) is expected to be of long-continued 
                        and indefinite duration;
                            ``(ii) substantially impedes his or her 
                        ability to live independently; and
                            ``(iii) is of such a nature that such 
                        ability could be improved by more suitable 
                        housing conditions;
                    ``(C) has a developmental disability, as defined in 
                section 102 of the Developmental Disabilities 
                Assistance and Bill of Rights Act; or
                    ``(D) has the disease of acquired immunodeficiency 
                syndrome or any conditions arising from the etiologic 
                agent for acquired immunodeficiency syndrome.
Subparagraph (D) shall not be construed to limit eligibility under 
subparagraphs (A) through (C) or the provisions referred to in 
subparagraphs (A) through (C).
            ``(12) Private nonprofit organization.--The term `private 
        nonprofit organization' means a private organization--
                    ``(A) no part of the net earnings of which inures 
                to benefits of any member, founder, contributor, or 
                individual;
                    ``(B) that has a voluntary board;
                    ``(C) that has an accounting system, or has 
                designated a fiscal agent in accordance with 
                requirements established by the Secretary; and
                    ``(D) that practices nondiscrimination in the 
                provision of assistance.
            ``(13) Project sponsor.--The term `project sponsor' means 
        an entity that--
                    ``(A) provides housing or assistance for homeless 
                individuals or families by carrying out activities 
                under this title; and
                    ``(B) meets such minimum standards as the Secretary 
                considers appropriate.
            ``(14) Recipient.--The term `recipient' means a grantee 
        (other than a State when it is distributing grant amounts to 
        State recipients) and a State recipient.
            ``(15) Secretary.--The term `Secretary' means the Secretary 
        of Housing and Urban Development.
            ``(16) State.--The term `State' means each of the several 
        States and the Commonwealth of Puerto Rico. The term includes 
        an agency or instrumentality of a State that is established 
        pursuant to legislation and designated by the chief executive 
        officer to act on behalf of the jurisdiction with regard to 
        provisions of this title.
            ``(17) State homeless assistance board.--The term `State 
        homeless assistance board' means the board established for the 
        State under section 409(d)(1).
            ``(18) State recipient.--The term `State recipient' means 
        the following entities receiving amounts from the State under 
        section 408(c)(2)(B)--
                    ``(A) a unit of general local government within the 
                State (other than an allocation unit of general local 
                government); and
                    ``(B) in the case of an area of the State with 
                significant homeless needs where no State recipient is 
                identified, one or more private nonprofit organizations 
                serving that area.
            ``(19) Unit of general local government.--The term `unit of 
        general local government' means--
                    ``(A) a city, town, township, county, parish, 
                village, or other general purpose political subdivision 
                of a State;
                    ``(B) the District of Columbia; and
                    ``(C) any agency or instrumentality thereof that is 
                established pursuant to legislation and designated by 
                the chief executive officer to act on behalf of the 
                jurisdiction with regard to provisions of this title.
            ``(20) Urban county.--The term `urban county' has the same 
        meaning as in section 102(a) of the Housing and Community 
        Development Act of 1974.
            ``(21) Very low-income families.--The term `very low-income 
        families' has the same meaning as in section 104 of the 
        Cranston-Gonzalez National Affordable Housing Act.

``SEC. 402. AUTHORIZATIONS.

    ``(a) In General.--The Secretary may make grants to carry out 
activities to assist homeless individuals and families in support of 
continuum of care systems, in accordance with this title.
    ``(b) Funding Amounts.--There are authorized to be appropriated to 
carry out this title $823,000,000 for fiscal year 1998 and such sums as 
may be necessary for each of fiscal years 1999, 2000, 2001, and 2002. 
Any amounts appropriated shall remain available until expended.

``SEC. 403. APPLICATION.

    ``(a) In General.--Each applicant shall submit the application 
required under this section in such form and in accordance with such 
procedures as the Secretary shall prescribe.
Where the applicant is a State or unit of general local government, the 
application shall be submitted as part of the homeless assistance 
component of the consolidated plan (which component, in the case of a 
State, shall not include allocation units of general local government).
    ``(b) Continuum of Care Submission.--
            ``(1) In general.--The local homeless assistance board or 
        the State homeless assistance board shall prepare, and submit 
        to the applicant for approval, those portions of the 
        application related to the development and implementation of 
        the continuum of care system, as described in paragraph (2) or 
        (3), as applicable.
            ``(2) Submission by local homeless assistance board.--The 
        local homeless assistance board shall develop and submit to the 
        applicant for approval--
                    ``(A) a Continuum of Care system consistent with 
                that defined under section 401(4). This system shall be 
                designed to incorporate any strengths and fill any gaps 
                in the jurisdiction's current homeless assistance 
                activities, and shall include a description of efforts 
                to address the problems faced by each of the different 
                subpopulations of homeless individuals;
                    ``(B) a multi-year strategy for implementing the 
                Continuum of Care system, including appropriate 
                timetables and budget estimates for accomplishing each 
                element of the strategy;
                    ``(C) a 1-year plan, identifying all activities to 
                be carried out with assistance under this title and 
                with assistance from other HUD resources allocated in 
                accordance with the consolidated plan, and describing 
                how these activities will further the strategy; and
                    ``(D) any specific performance measures and 
                benchmarks for use in assessing the performance of the 
                grantee under this title that are in addition to 
                national performance measures and benchmarks 
                established by the Secretary.
            ``(3) Submission by state homeless assistance board.--The 
        State homeless assistance board shall develop and submit to the 
        applicant for approval--
                    ``(A) a Continuum of Care system consistent with 
                that defined under section 401(4). This system shall be 
                designed to incorporate any strengths and fill any gaps 
                in the jurisdiction's current homeless assistance 
                activities, and shall include a description of efforts 
                to address the problems faced by each of the different 
                subpopulations of homeless individuals;
                    ``(B) a multi-year strategy for implementing the 
                continuum of care systems in areas of the State outside 
                allocation units of general local government, including 
                the actions the State will take to achieve the goals 
                set out in the strategy;
                    ``(C) a 1-year plan identifying--
                            ``(i) in the case of a State carrying out 
                        its own activities under section 408(c)(2)(A), 
                        the activities to be carried out with 
                        assistance under this title and describing how 
                        these activities will further the strategy; and
                            ``(ii) in the case of a State distributing 
                        grant amounts to State recipients under section 
                        408(c)(2)(B), the criteria that the State will 
                        use in distributing amounts awarded under this 
                        title, the method of distribution, and the 
                        relationship of the method of distribution to 
                        the homeless assistance strategy; and
                    ``(D) any specific performance measures and 
                benchmarks for use in assessing the performance of the 
                grantee under this title that are in addition to 
                national performance measures and benchmarks 
                established by the Secretary.
    ``(c) Continuum of Care Approval.--The applicant shall review the 
continuum of care submission to determine if it is consistent with the 
homeless needs assessment and the inventory of homeless facilities 
portions of the consolidated plan. The applicant may alter the 
submission where it is inconsistent, but shall give the State or local 
homeless assistance board an opportunity to comment on any proposed 
alterations, and shall include in the application sufficient 
justification for any alterations and any comments of the homeless 
assistance board on the alterations.
    ``(d) Submission Requirements for Applicants Other Than States.--
Each application from an applicant other than a State shall contain at 
a minimum--
            ``(1) the continuum of care submission described in 
        subsection (b)(2), and, if applicable, any alterations, 
        justifications, and comments under subsection (c);
            ``(2) a determination on whether the assistance under this 
        title will be administered by the jurisdiction, a public agency 
        or private nonprofit organization, or the State, as appropriate 
        under subsections (b) and (c) of section 408;
            ``(3) certifications or other such forms of proof of 
        commitments of financial and other resources sufficient to 
        comply with the match requirements under section 405(c)(1);
            ``(4) a certification that the applicant is following a 
        current approved consolidated plan;
            ``(5) a certification that the grant will be conducted and 
        administered in conformity with title VI of the Civil Rights 
        Act of 1964, section 504 of the Rehabilitation Act of 1973, and 
        the Fair Housing Act, and the grantee will affirmatively 
        further fair housing; and
            ``(6) a certification that the applicant will comply with 
        the requirements of this title and other applicable laws.
    ``(e) Submission Requirements for States.--Each application from a 
State shall contain--
            ``(1) the continuum of care submission described in 
        subsection (b)(3) and, if applicable, any alterations, 
        justifications, and comments under subsection (c);
            ``(2) certifications or other such forms of proof of 
        commitments of financial and other resources sufficient to 
        comply with the match requirements under section 405(c)(1);
            ``(3) a certification that the applicant is following a 
        current approved consolidated plan;
            ``(4) a certification that the grant will be conducted and 
        administered in conformity with title VI of the Civil Rights 
        Act of 1964, section 504 of the Rehabilitation Act of 1973, and 
        the Fair Housing Act, and the grantee will affirmatively 
        further fair housing; and
            ``(5) a certification that the State and State recipients 
        will comply with the requirements of this title and other 
        applicable laws.
    ``(f) Application Approval.--The application shall be approved by 
the Secretary unless the Secretary determines that the application is 
substantially incomplete, or determines, under section 409(c)(5) or 
409(d)(1)(B), that the process for constituting or operating the local 
or State homeless assistance board is unfair.

``SEC. 404. ELIGIBLE PROJECTS AND ACTIVITIES.

    ``(a) Eligible Projects.--Grants under this title may be used to 
carry out activities described in subsection (b) in support of the 
following types of projects--
            ``(1) Emergency assistance.--Assistance designed to prevent 
        homelessness or to meet the emergency needs of homeless 
        individuals and families, including one or more of the 
        following--
                    ``(A) Prevention.--Efforts to prevent homelessness 
                of a very low-income individual or family that has 
                received an eviction notice, notice of mortgage 
                foreclosure, or notice of termination of utilities, 
                if--
                            ``(i) the individual or family cannot make 
                        the required payments due to a sudden reduction 
                        in income or other financial emergency; and
                            ``(ii) the assistance is necessary to avoid 
                        imminent eviction, foreclosure, or termination 
                        of services.
                    ``(B) Outreach and assessment.--Efforts designed to 
                inform individuals and families about the availability 
                of services, to bring them into the continuum of care 
                system, and to determine which services or housing are 
                appropriate to the needs of the individual or family.
                    ``(C) Emergency shelter.--The provision of short-
                term emergency shelter with essential supportive 
                services for homeless individuals and families.
            ``(2) Safe haven housing.--A structure or a clearly 
        identifiable portion of a structure that--
                    ``(A) provides housing and low-demand services and 
                referrals for homeless individuals 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.
            ``(3) Transitional housing.--Housing and appropriate 
        supportive services that are designed to facilitate the 
        movement of homeless individuals to permanent housing, 
        generally within 24 months.
            ``(4) Permanent housing and permanent housing and 
        supportive services for persons with disabilities.--Permanent 
        housing for homeless individuals, and permanent housing and 
        supportive services for homeless persons with disabilities, the 
        latter of which may be designed to provide housing and services 
        solely for persons with disabilities, or may provide housing 
        for such persons in a multifamily housing, condominium, or 
        cooperative project.
            ``(5) Single room occupancy housing.--A unit for occupancy 
        by one person, which need not (but may) contain food 
        preparation or sanitary facilities, or both, and may provide 
        services such as mental health services, substance abuse 
        treatment, job training, and employment programs.
            ``(6) Other projects.--Such other projects as the Secretary 
        determines will further the purposes of title I of the 
        Homelessness Assistance and Management Reform Act of 1997.
    ``(b) Eligible Activities.--Grants under this title may be used to 
carry out the following activities in support of projects described in 
subsection (a)--
            ``(1) Homelessness prevention activities.--Short-term 
        mortgage, rental, and utilities payments and other short-term 
        assistance designed to prevent the imminent homelessness of the 
        individuals and families described in subsection (a)(1)(A).
            ``(2) Outreach and assessment.--Drop-in centers, 24-hour 
        hotlines, counselors, and other activities designed to engage 
        homeless individuals and families, bring them into the 
        continuum of care system, and determine their individual 
        housing and service needs.
            ``(3) Acquisition and rehabilitation.--The acquisition, 
        rehabilitation, or acquisition and rehabilitation of real 
        property.
            ``(4) New construction.--The new construction of a project, 
        including the cost of the site.
            ``(5) Operating costs.--The costs of operating a project, 
        including salaries and benefits, maintenance, insurance, 
        utilities, replacement reserve accounts, and furnishings.
            ``(6) Leasing.--Leasing of an existing structure or 
        structures, or units within these structures, including the 
        provision of long-term rental assistance contracts.
            ``(7) Tenant assistance.--The provision of security or 
        utility deposits, rent or utility payments for the first month 
        of residence at a new location, and relocation assistance.
            ``(8) Supportive services.--The provision of essential 
        supportive services including, but not limited to, case 
        management, housing counseling, job training and placement, 
        primary health care, mental health services, substance abuse 
        treatment, child care, transportation, emergency food and 
        clothing, family violence services, education services, moving 
        services, assistance in obtaining entitlement benefits, and 
        referral to veterans services and referral to legal services.
            ``(9) Administration.--
                    ``(A) In general.--Expenses incurred in--
                            ``(i) planning, developing, and 
                        establishing a program under this title;
                            ``(ii) establishing, selecting, and 
                        supporting the local homeless assistance board 
                        or the State homeless assistance board; and
                            ``(iii) administering the program.
                    ``(B) Limitations.--Not more than the following 
                amounts may be used for administrative costs under 
                subparagraph (A)--
                            ``(i) 10 percent of any grant amounts 
                        provided for a recipient for a fiscal year 
                        (including amounts used by a State to carry out 
                        its own activities under section 408(c)(2)(A)); 
                        and
                            ``(ii) 5 percent of any grant amounts 
                        provided to a State for a fiscal year that the 
                        State uses to distribute funds to a State 
                        recipient under section 408(c)(2)(B).
            ``(10) Capacity building.
                    ``(A) In general.--Building the capacity of private 
                nonprofit organizations to participate in the continuum 
                of care system of the recipient.
                    ``(B) Limitations.--Not more than the following 
                amounts may be used for capacity building under 
                subparagraph (A)--
                            ``(i) 2 percent of any grant amounts 
                        provided for a recipient for a fiscal year 
                        (including amounts used by a State to carry out 
                        its own activities under section 408(c)(2)(A)); 
                        and
                            ``(ii) 2 percent of any grant amounts 
                        provided to a State for a fiscal year that the 
                        State uses to distribute funds to a State 
                        recipient under section 408(c)(2)(B).
            ``(11) Other activities.--Other activities as the Secretary 
        determines will further the purposes of title I of the 
        Homelessness Assistance and Management Reform Act of 1997.
    ``(c) Targeting to Subpopulations of Persons With Disabilities.--
Notwithstanding any other provision of law, projects for persons with 
disabilities assisted under this title may be targeted to specific 
subpopulations of such persons, including (but not limited to) persons 
who--
            ``(1) are seriously mentally ill;
            ``(2) have chronic problems with drugs, alcohol, or both; 
        or
            ``(3) have acquired immunodeficiency syndrome or any 
        conditions arising from the etiologic agency for acquired 
        immunodeficiency syndrome.

``SEC. 405. MATCHING REQUIREMENT AND MAINTENANCE OF EFFORT.

    ``(a) Matching Requirement.--
            ``(1) In general.--Each recipient shall make contributions 
        totaling not less than 50 percent of the amounts made available 
        for the recipient for any fiscal year under this title to carry 
        out eligible activities. At the end of each program year, each 
        recipient shall certify to the Secretary that it has complied 
        with this section, and shall include with the certification a 
        description of the sources and amounts of the matching 
        contributions. Contributions under this section may not come 
        from assistance provided under this title.
            ``(2) Reduction in matching requirements.--
                    ``(A) In general.--The Secretary shall reduce the 
                matching requirement under paragraph (1) during a 
                fiscal year by--
                            ``(i) 50 percent for a jurisdiction that 
                        certifies that it is in fiscal distress; and
                            ``(ii) 100 percent for a jurisdiction that 
                        certifies that it is in severe fiscal distress.
For purposes of clauses (i) and (ii), the jurisdiction shall make the 
certification on behalf of a recipient that is not a governmental 
jurisdiction.
                    ``(B) Definitions.--For purposes of this 
                subsection--
                            ``(i) the term ``fiscal distress'' means an 
                        allocation unit of general local government, 
                        insular area, or State recipient that is a 
                        governmental jurisdiction that satisfies one of 
                        the distress criteria set forth in subparagraph 
                        (C); and
                            ``(ii) the term ``severe fiscal distress'' 
                        means an allocation unit of general local 
                        government, insular area, or State recipient 
                        that is a governmental jurisdiction that 
                        satisfies both of the distress criteria set 
                        forth in subparagraph (C).
                    ``(C) Distress criteria.--For an allocation 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--
                            ``(i) 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).
                            ``(ii) 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).
                    ``(D) States.--In the case of States carrying out 
                their own activities under section 408(c)(2)(A), the 
                Secretary shall reduce the matching requirement under 
                paragraph (1) as provided by the preceding 
                subparagraphs, 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.
                    ``(E) 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 paragraph (1) 
                during that fiscal year by up to 100 percent.
            ``(3) Calculation of amounts.--In calculating the amount of 
        matching contributions required under paragraph (1), a 
        recipient may include--
                    ``(A) any funds derived from a source, other than 
                assistance under this title or amounts subject to 
                subsection (b);
                    ``(B) the value of any lease on a building; and
                    ``(C) any salary paid to staff or any volunteer 
                labor contributed to carry out the program.
    ``(b) Limitation on Use of Funds.--No assistance received under 
this title may be used to replace other funds previously used, or 
designated for use, by the State, State recipient (except when a State 
recipient is a private nonprofit organization), allocation unit of 
general local government or insular area to assist homeless individuals 
and families.

``SEC. 406. RESPONSIBILITIES OF RECIPIENTS, PROJECT SPONSORS, AND 
              OWNERS.

    ``(a) Use of Assistance Through Private Non-Profit Organizations.--
            ``(1) In general.--Each recipient shall ensure that at 
        least 50 percent of the grant amounts that are made available 
        to it under this title for any fiscal year are made available 
        to project sponsors that are private nonprofit organizations.
            ``(2) Waiver.--The Secretary may waive or reduce the 
        requirement of paragraph (1), if the recipient demonstrates to 
        the Secretary that the requirement interferes with the ability 
        of the recipient to provide assistance under this title because 
        of the paucity of qualified private non-profit organizations in 
        the jurisdiction of the recipient.
    ``(b) Housing Quality.--Each recipient shall ensure that housing 
assisted with grant amounts provided under this title is decent, safe, 
and sanitary and complies with all applicable State and local housing 
codes, building codes, and licensing requirements in the jurisdiction 
in which the housing is located.
    ``(c) Prevention of Undue Benefit.--The Secretary may prescribe 
such terms and conditions as the Secretary considers necessary to 
prevent project sponsors from unduly benefiting from the sale or other 
disposition of projects, other than a sale or other disposition 
resulting in the use of the project for the direct benefit of very low-
income families.
    ``(d) Confidentiality.--Each recipient shall develop and implement 
procedures to ensure the confidentiality of records pertaining to any 
individual provided services assisted under this title for family 
violence prevention or treatment or for such medical or other 
conditions as the Secretary may prescribe, and to ensure that the 
address or location of any project providing such services will, except 
with written authorization of the person or person responsible for the 
operation of such project, not be made public.
    ``(e) Employment of Homeless Individuals.--
            ``(1) To the maximum extent practicable, the Secretary 
        shall ensure that recipients, through employment, volunteer 
        services, or otherwise, provide opportunities for homeless 
individuals and families to participate in--
                    ``(A) constructing, renovating, maintaining, and 
                operating facilities assisted under this title;
                    ``(B) providing services so assisted; and
                    ``(C) providing services for occupants of 
                facilities so assisted.
            ``(2) In carrying out paragraph (1), recipients shall not 
        displace employed workers.
    ``(f) Participation of Homeless Individuals.--The Secretary shall 
provide that each recipient shall require each project sponsor 
receiving assistance under this title from the recipient to provide for 
the participation of not less than one homeless individual or formerly 
homeless individual on the board of directors or other equivalent 
policy making entity of the project sponsor, to the extent that such 
entity considers and makes policies and decision regarding any project, 
facility, services, or other activities assisted under this title. A 
recipient may grant waivers to project sponsors unable to meet the 
requirement under the preceding sentence, if the project sponsor agrees 
to otherwise consult with homeless or formerly homeless individuals in 
considering and making such policies and decisions.
    ``(g) Nondiscrimination Toward Certificate and Voucher Holders.--In 
the case of multifamily rental housing assisted under this title 
(except for such housing only receiving homeless prevention assistance 
authorized under section 404(b)(1) of this title) that is receiving, or 
(except for insurance referred to in paragraph (4)) has received within 
two years before the effective date of this title, the benefit of 
Federal assistance from an agency of the United States, the owner shall 
not refuse to lease a reasonable number of units to families under the 
tenant-based assistance program under section 8 of the United States 
Housing Act of 1937 because of the status of the prospective tenants as 
families under the program. The Secretary shall establish reasonable 
time periods for applying the requirement of this subsection, taking 
into account the total amount of the assistance and the relative share 
of the assistance compared to the total cost of financing, developing, 
rehabilitating, or otherwise assisting a project. Federal assistance 
for purposes of this subsection shall mean--
            (1) project-based assistance under the United States 
        Housing Act of 1937;
            (2) assistance under title I of the Housing and Community 
        Development Act of 1974;
            (3) assistance under title II of the Cranston-Gonzalez 
        National Affordable Housing Act;
            (4) mortgage insurance under the National Housing Act;
            (5) low-income housing tax credits under section 42 of the 
        Internal Revenue Code of 1986; and
            (6) assistance under any other programs designated by the 
        Secretary.
    ``(h) Occupancy Charge.--Any homeless individual 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 individual or family. Occupancy 
charges paid may be reserved, in whole or in part, to assist residents 
in moving to permanent housing.

``SEC. 407. ALLOCATION AND DISTRIBUTION OF FUNDS.

    ``(a) Insular Areas.--
            ``(1) Allocation.--For each fiscal year, the Secretary 
        shall allocate assistance under this title to insular areas, in 
        an amount equal to 0.20 percent of the amounts appropriated 
        under the first sentence of section 402(b).
            ``(2) Distribution.--The Secretary shall provide for the 
        distribution of amounts reserved under paragraph (1) for 
        insular areas pursuant to specific criteria or a distribution 
        formula prescribed by the Secretary.
    ``(b) States and Allocation Units of General Local Government.--
            ``(1) In general.--For each fiscal year, of the amounts 
        appropriated under the first sentence of section 402(b) that 
        remain after amounts are reserved--
                    ``(A) for insular areas under subsection (a), and
                    ``(B) for technical assistance and other activities 
                under subsection (d),
        the Secretary shall allocate assistance according to the 
        formula described in paragraph (2).
            ``(2) Formula.--
                    ``(A) Allocation.--The Secretary shall allocate 
                amounts for allocation units of general local 
                government (including jurisdictions that received a 
                formula grant for fiscal year 1996 or 1997 under 
                subtitle B of this title, as it existed immediately 
                before the effective date of the Homelessness 
                Assistance and Management Reform Act of 1997) and 
                States, in a manner that ensures that the percentage of 
                the total amount available under this title for any 
                fiscal year for any allocation unit of general local 
                government or State is equal to the percentage of the 
                total amount available for section 106 of the Housing 
                and Community Development Act of 1974 for the same 
                fiscal year that is allocated for the allocation unit 
                of general local government or State.
                    ``(B) Minimum allocation.--
                            ``(i) Allocation units of general local 
                        government.--If under subparagraph (A) for any 
                        fiscal year, the allocation for any allocation 
                        unit of general local government is less than 
                        0.05 percent of the amounts appropriated under 
                        the first sentence of section 402(b), such 
                        allocation unit shall not receive a grant and 
                        its allocation shall be added to the allocation 
                        for the State in which such allocation unit is 
                        located for use under section 408(c)(1), except 
                        that any such allocation unit that received a 
                        grant in a previous fiscal year (including a 
                        jurisdiction that received a formula grant for 
                        fiscal year 1996 or 1997 under subtitle B of 
                        this title, as it existed immediately before 
                        the effective date of the Homelessness 
                        Assistance and Management Reform Act of 1997) 
                        shall be allocated an amount equal to 0.05 
                        percent of the amounts appropriated under the 
                        first sentence of section 402(b).
                            ``(ii) States.--If under subparagraph (A) 
                        for any fiscal year, the allocation for any 
                        State is less than 0.2 percent of the amounts 
                        appropriated under the first sentence of 
                        section 402(b), such State shall be allocated 
                        an amount equal to 0.2 percent of such amounts.
                    ``(C) Pro rata increases and decreases.--
                            ``(i) Increase.--All amounts allocated 
                        pursuant to the preceding subparagraphs for 
                        allocation units of general local government 
                        shall be increased on a pro rata basis until 
                        the aggregate of such amounts equals 75 percent 
                        of the remainder of amounts appropriated under 
                        this title for each year, after amounts are 
                        allocated for insular areas under subsection 
                        (a) and for technical assistance and other 
                        assistance under subsection (d).
                            ``(ii) Decrease.--All amounts allocated 
                        pursuant to the preceding subparagraphs for 
                        States shall be decreased on a pro rata basis 
                        until the aggregate of such amounts equals 25 
                        percent of the remainder of amounts 
                        appropriated under this title for each year, 
                        after amounts are allocated for insular areas 
                        under subsection (a) and for technical and 
                        other assistance under subsection (d).
            ``(3) Minimum grant amount.--Notwithstanding paragraph (2), 
        an allocation unit of general local government shall receive no 
        less funding under this subsection in fiscal year 1998 than 75 
        percent of the average of the amounts awarded annually to that 
        jurisdiction for homeless assistance programs administered by 
        the Secretary under this title during fiscal years 1987 through 
        1996, no less than 50 percent in fiscal year 1999, and no less 
        than 25 percent in fiscal year 2000, but only if amounts 
        appropriated pursuant to the first sentence of section 402(b) 
        in each of fiscal years 1998, 1999, and 2000 exceed 
        $800,000,000. If such amounts do not exceed $800,000,000 in 
        fiscal year 1998, 1999, or 2000, the allocation unit of general 
        local government may receive its proportionate share of the 
        amounts appropriated which may be less than 75 percent of such 
        annual average amounts for fiscal year 1998, less than 50 
        percent for fiscal year 1999, and less than 25 percent for 
        fiscal year 2000 as determined by the Secretary.
            ``(4) Reduction.--Notwithstanding paragraphs (2) and (3), 
        in any fiscal year, the Secretary may provide a grant under 
        this title for a State or for an allocation unit of general 
        local government 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.
    ``(c) Reallocations.--
            ``(1) Amounts not received.--Any amounts that a State or an 
        allocation unit of general local government is eligible to 
        receive under subsection (b) that are not received for use in 
        the jurisdiction, pursuant to subsection (b)(4), shall be added 
        to amounts available for allocation under subsection (b) of 
        this section for the succeeding fiscal year.
            ``(2) Use of amounts under this title.--
                    ``(A) Authority for alternative use of amounts.--If 
                the Secretary determines that a State or an allocation 
                unit of general local government has made substantial 
                progress in reducing the number and meeting the needs 
                of homeless individuals, and is eligible to receive an 
                amount under subsection (b) that is in excess of the 
                amount required to meet the needs of homeless 
                individuals through activities under this title, the 
                Secretary shall reduce the amount under subsection (b) 
                accordingly, and add such excess amount to the amount 
                allocated for such jurisdiction under section 106 of 
                the Housing and Community Development Act of 1974 or 
                under section 217 of the HOME Investment Partnerships 
                Act, for use in meeting low-income housing needs. In 
                making the determinations required by the preceding 
                sentence, the Secretary shall consult with the State or 
                allocation unit of general local government and assess 
                the need for assistance under this Act, taking into 
                account such factors as the current number of homeless 
                individuals, the extent of their need, and the cost of 
                meeting such need. The Secretary shall make the initial 
                determination for amounts to be allocated in fiscal 
                year 2001 and at least every three years thereafter.
                    ``(B) Authority to make transfers among 
                appropriation accounts.--The Secretary shall transfer 
                such amounts as are approved in accordance with this 
                paragraph among appropriation accounts, as appropriate.
    ``(d) Technical and Other Assistance and Management Information 
Systems.--
            ``(1) Technical and other assistance.--From amounts 
        appropriated under the first sentence of section 402(b) for any 
        fiscal year, the Secretary may directly or indirectly by grant, 
        contract, or cooperative agreement use up to $25,000,000 for--
                    ``(A) Technical assistance.--Technical assistance, 
                which may include training and the cost of necessary 
                travel for participants in such training, by or to 
                officials and employees of the Department of Housing 
                and Urban Development, applicants, grantees, 
                recipients, local and State homeless assistance boards, 
                State recipients, and private nonprofits to improve 
                their ability to carry out the provisions of this title 
                and to support the creation of continuum of care 
                systems.
                    ``(B) Capacity building.--Assistance to private 
                nonprofit organizations to build their capacity in 
                support of continuum of care systems.
                    ``(C) Resource identification.--Identification, 
                coordination, and development of resources and data for 
                homelessness, including determining the feasibility of 
                specific housing-related initiatives.
                    ``(D) Program oversight.--Performance reviews and 
                audits under section 410(c), including the cost of 
                necessary travel.
            ``(2) Management information systems.--From amounts 
        appropriated under the first sentence of section 402(b) for any 
        fiscal year, the Secretary shall reserve 0.4 percent to 
        develop, implement, and refine management information systems 
        in order to establish a national database on local needs and 
        priorities and to provide grantees and others with software to 
        plan and track performance under this title.

``SEC. 408. ADMINISTRATION OF PROGRAM.

    ``(a) In General.--The Secretary shall prescribe such procedures 
and requirements as the Secretary deems appropriate for administering 
grant amounts under this title.
    ``(b) Allocation Units of General Local Government and Insular 
Areas.--
            ``(1) In general.--Except as provided in paragraphs (2) and 
        (3), an allocation unit of general local government or insular 
        area shall administer grant amounts received under section 
        407(a) or (b) for any fiscal year.
            ``(2) Agencies and organizations designated by 
        jurisdiction.--
                    ``(A) Designation of other entities to administer 
                grant amounts.--An allocation unit of general local 
                government or insular area may elect for any fiscal 
                year to designate a public agency or a private 
                nonprofit organization (or a collaboration of such 
                organizations) to administer grant amounts received 
                under section 407(a) or (b) instead of the 
                jurisdiction.
                    ``(B) Provision of grant amounts.--The Secretary 
                may, at the request of a jurisdiction under 
                subparagraph (A), provide grant amounts directly to the 
                agency or organization designated under that 
                subparagraph.
            ``(3) Administration of grant by secretary or secretary's 
        designee.--If an allocation unit of general local government or 
        insular area, or (if appropriate) a public agency or private 
        nonprofit organization designated by the jurisdiction under 
        paragraph (2), does not receive a grant pursuant to section 
        407(b)(4) for any fiscal year, the Secretary shall--
                    ``(A) designate the State or a local private 
                nonprofit organization to administer the grant amounts 
                instead of the jurisdiction; or
                    ``(B) distribute the funds to private nonprofit 
                organizations to carry out activities within the 
                jurisdiction on the basis of a competition.
    ``(c) States.--
            ``(1) In general.--Each State shall elect either--
                    ``(A) to administer grant amounts received under 
                section 407(b), as provided by paragraphs (2) and (3); 
                or
                    ``(B) have the Secretary administer these amounts 
                instead of the State, as provided by paragraph (4).
        If a State elects to administer grant amounts under 
        subparagraph (A), the election shall be permanent and final.
            ``(2) State program.--Of amounts referred to in paragraph 
        (1)(A), the State--
                    ``(A) may use not more than 15 percent to carry out 
                its own homeless assistance program under this title; 
                and
                    ``(B) shall distribute the remaining amounts to 
                State recipients.
        Grants to States may only be used to carry out activities in 
        areas of the State outside allocation units of general local 
        government.
            ``(3) Distribution of amounts to state recipients.--
                    ``(A) In general.--
                            ``(i) States distributing amounts under 
                        paragraph (2)(B) to State recipients that are 
                        units of general local government shall, for 
                        each fiscal year, afford each such recipient 
                        the options of--
                                    ``(I) administering the grant 
                                amounts on its own behalf;
                                    ``(II) designating (as provided by 
                                subsection (b)(2)) a public agency or a 
                                private nonprofit organization (or a 
                                combination of such organizations) to 
                                administer the grant amounts instead of 
                                the jurisdiction; or
                                    ``(III) entering into an agreement 
                                with the State, in consultation with 
                                private nonprofit organizations 
                                providing assistance to homeless 
                                individuals and families in the 
                                jurisdiction, under which the State 
                                will administer the grant amounts 
                                instead of the jurisdiction.
                            ``(ii) A State recipient designating an 
                        agency or organization as provided by clause 
                        (i)(II), or entering into an agreement with the 
                        State under clause (i)(III), shall remain the 
                        State recipient for purposes of this title.
                            ``(iii) The State may, at the request of 
                        the State recipient, provide grant amounts 
                        directly to the agency or organization 
                        designated under clause (i)(II).
                    ``(B) Application.--
                            ``(i) The State shall distribute amounts to 
                        State recipients (or to agencies or 
                        organizations designated under subparagraph 
                        (A)(i)(II), as appropriate) on the basis of an 
                        application containing such information as the 
                        State may prescribe, except that each 
                        application shall reflect the State's 
                        application requirements in section 403(d) and 
                        evidence an intent to facilitate the 
                        establishment of a continuum of care system 
                        prepared by the State homeless assistance 
                        board.
                            ``(ii) The State may waive the requirements 
                        in clause (i) with respect to one or more 
                        proposed activities, where the State determines 
                        that--
                                    ``(I) the activities are necessary 
                                to meet the needs of homeless 
                                individuals and families within the 
                                jurisdiction; and
                                    ``(II) a continuum of care system 
                                is not necessary, due to the nature and 
                                extent of homelessness in the 
                                jurisdiction.
                    ``(C) Preference.--In selecting State recipients 
                and making awards under subparagraph (B), the State 
                shall give preference to applications that demonstrate 
                higher relative levels of homeless need and fiscal 
                distress.
            ``(4) HUD administration of state program.--
                    ``(A) In general.--If a State elects to have the 
                Secretary administer its grant amounts under section 
                407, as provided by paragraph (1)(B), the Secretary may 
                retain up to 5 percent of such amounts to cover 
                administrative expenses, and distribute the remaining 
                amounts in areas of the State outside allocation units 
                of general local government to--
                            ``(i) units of general local government 
                        (other than allocation units of general local 
                        government);
                            ``(ii) public agencies or private nonprofit 
                        organizations designated by such units of 
                        general local government; or
                            ``(iii) private nonprofit organizations.
                    ``(B) Distribution of funds.--The Secretary shall 
                distribute amounts under this paragraph on a 
                competitive basis, using selection criteria which shall 
                include--
                            ``(i) the extent to which there is a need 
                        for assistance for homeless individuals and 
                        families in the jurisdiction;
                            ``(ii) the extent to which the proposed 
                        activities further the establishment and 
                        maintenance of a continuum of care system;
                            ``(iii) the extent to which private 
                        nonprofit organizations providing assistance to 
                        homeless individuals and facilities in the 
                        jurisdiction have been, and will be, included 
                        in planning for the receipt of assistance under 
                        this title, and the execution of the proposed 
                        activities;
                            ``(iv) the capacity of the entity applying 
                        for a grant under this subsection to develop 
                        and operate a project;
                            ``(v) the need for the type of project 
                        proposed by the entity applying for a grant 
                        under this subsection in the area to be served;
                            ``(vi) the extent to which the amount of 
                        assistance to be provided under this title will 
                        be supplemented with resources from other 
                        public and private sources;
                            ``(vii) the extent to which the entity 
                        applying for a grant under this subsection has 
                        demonstrated coordination with Federal, State, 
                        local, private, and other entities serving 
                        homeless individuals in the planning and 
                        operation of the project; and
                            ``(viii) such other criteria as the 
                        Secretary deems appropriate to further the 
                        purposes of this paragraph and this title.

``SEC. 409. CITIZEN PARTICIPATION.

    ``(a) In General.--Each recipient shall ensure that citizens, 
appropriate private nonprofit organizations, and other interested 
groups and entities participate fully in the development and carrying 
out of the program authorized under this title. The Secretary shall 
prescribe such requirements to carry out this section as the Secretary 
deems appropriate, which shall include requirements applicable to the 
citizen participation provisions of subsection (b), the local homeless 
assistance board referred to in subsection (c), and the requirements 
for homeless assistance boards for States and State recipients under 
subsection (d), and the timing of, and sequence for, carrying out the 
requirements of those subsections.
    ``(b) Specific Requirements for the Involvement of Citizens and 
Others.--
            ``(1) Entities that are governmental jurisdictions.--Each 
        recipient that is a governmental jurisdiction shall comply with 
        the citizen participation requirements established by the 
        Secretary with respect to the consolidated plan.
            ``(2) Entities that are not governmental jurisdictions.--
        For applicants or grantees (as appropriate) that are not 
        governmental jurisdictions, the Secretary shall prescribe 
        citizen participation requirements that are comparable (to the 
        extent appropriate) to those required by paragraph (1).
    ``(c) Local Homeless Assistance Board for Allocation Units of 
General Local Government and Insular Areas.--
            ``(1) Establishment and function.--The chief executive 
        officer of each allocation unit of general local government or 
        insular area shall establish, select, and support a local 
        homeless assistance board, which shall assist the 
        jurisdiction--
                    ``(A) by developing the continuum of care system 
                and other submission requirements, and by submitting 
                the system and such other submission requirements for 
                its approval under section 403(b);
                    ``(B) in overseeing the activities carried out with 
                assistance under this title; and
                    ``(C) in preparing the performance report under 
                section 410(b).
            ``(2) Composition of board.--The composition of each local 
        homeless assistance board shall be as follows--
                    ``(A) Majority of board.--Not less than 51 percent 
                of the members of the local homeless assistance board 
                shall represent the following--
                            ``(i) homeless individuals and families;
                            ``(ii) homeless advocates that meet such 
                        minimum standards of advocacy as the Secretary 
                        shall prescribe; and
                            ``(iii) individuals and entities providing 
                        assistance to homeless individuals and 
                        families.
                    ``(B) Remainder of board.--The remainder of the 
                local homeless assistance board shall represent the 
                following--
                            ``(i) business and labor;
                            ``(ii) neighborhood advocates; and
                            ``(iii) government officials.
            ``(3) Nomination and selection of board members.--
                    ``(A) Nomination of board members.--The membership 
                of each local homeless assistance board meeting the 
                criteria in paragraph (2)(A) shall have been nominated 
                by individuals and entities, other than a governmental 
                jurisdiction, that represent these groups.
                    ``(B) Selection of board members.--In selecting a 
                local homeless assistance board, the chief executive 
                officer of the jurisdiction shall, to the maximum 
                extent practicable, select members who will improve 
                access to a broad range of services for homeless 
                individuals and families and who are sensitive to the 
                varying needs of homeless individuals and families. 
                Each local homeless assistance board shall include 
                members who, to the maximum extent practicable and 
                consistent with local needs, represent the different 
                homeless subpopulations in that community.
            ``(4) Waiver by secretary.--The Secretary may waive the 
        requirements of paragraphs (2) and (3), if the jurisdiction has 
        an existing local homeless assistance board that substantially 
        meets the requirements of such paragraphs.
            ``(5) Review by secretary.--A member or members of a local 
        homeless assistance board, or other members of the community, 
        may request the Secretary to review the process for 
        constituting or operating the local homeless assistance board 
        to determine whether the process is fair. If the Secretary 
        finds that the process is unfair and promptly submits a written 
        justification to the board, the Secretary may disapprove the 
        application under section 403 for the jurisdiction.
            ``(6) Conflicts of interest.--The Secretary shall prescribe 
        standards governing potential conflicts of interest under which 
        members of local homeless assistance boards under this 
        subsection may participate in activities carried out under this 
        title.
    ``(d) Homeless Assistance Boards for States and State Recipients.--
            ``(1) State homeless assistance board.--
                    ``(A) Establishment and function.--The chief 
                executive officer of the State shall establish, select, 
                and support a State homeless assistance board, which 
                shall assist the State--
                            ``(i) by developing the continuum of care 
                        system and other submission requirements, and 
                        by submitting the system and such other 
                        submission requirements for its approval under 
                        section 403(b);
                            ``(ii) in determining the percentage of the 
                        grant that the State should use--
                                    ``(I) to carry out its own homeless 
                                assistance program under section 
                                408(c)(2)(A); or
                                    ``(II) to distribute amounts to 
                                State recipients under section 
                                408(c)(2)(B);
                            ``(iii) in carrying out the State's 
                        responsibilities where--
                                    ``(I) the Secretary designates the 
                                State to administer grant amounts under 
                                section 408(b)(3)(A); or
                                    ``(II) the State enters into an 
                                agreement with a State recipient to 
                                administer the State recipient's 
                                amounts under section 
                                408(c)(3)(A)(i)(III);
                            ``(iv) in overseeing the activities carried 
                        out with assistance under this title; and
                            ``(v) in preparing the performance report 
                        under section 410(b).
                    ``(B) Other requirements.--State homeless 
                assistance boards shall be subject to subsections 
                (c)(2) through (6).
            ``(2) State recipients.--State recipients shall establish, 
        select, and support a local homeless assistance board 
        comparable (to the extent appropriate) to that described in 
        subsection (c), or may use such other community consultation 
        process as the Secretary shall prescribe.
    ``(e) Local Homeless Assistance Board Where Secretary Is 
Distributing Grant Amounts.--
            ``(1) In general.--If the Secretary designates a State or a 
        private nonprofit organization to administer grant amounts 
        under section 408(b)(3)(A), distributes grant amounts to a 
        private nonprofit organization (as provided by section 
        408(b)(3)(B)), or distributes grant amounts instead of a State 
        under section 408(c)(4), the Secretary shall--
                    ``(A) designate a State or unit of general local 
                government to establish, select, and support a local 
                homeless assistance board meeting the requirements of 
                subsection (c); or
                    ``(B) enter into a partnership with another entity 
                to establish, select, and support the local homeless 
                assistance board.
            ``(2) Laws inapplicable.--Section 103 of the Department of 
        Housing and Urban Development Reform Act of 1989 shall not 
        apply with respect to the actions of the Secretary referred to 
        in paragraph (1). The Secretary shall establish appropriate 
        standards under this paragraph to ensure the integrity of the 
        process for awarding assistance.
    ``(f) Authority of Secretary.--The Secretary shall establish such 
procedures as the Secretary deems appropriate for providing a fair 
hearing and timely resolution of citizen complaints related to 
applications or performance reports under this title.

``SEC. 410. PERFORMANCE REPORTS, REVIEWS, AUDITS, AND GRANT 
              ADJUSTMENTS.

    ``(a) National Performance Measures and Benchmarks.--The Secretary 
shall establish national performance measures and benchmarks to assist 
the Secretary, grantees, citizens, and others in assessing the use of 
funds made available under this title.
    ``(b) Grantee Performance and Evaluation Report.--Each grantee 
shall submit to the Secretary a performance and evaluation report 
prepared by the local homeless assistance board under section 409(c) or 
(e), or the State homeless assistance board under section 409(d), as 
appropriate, concerning the use of funds made available under this 
title. The grantee may modify the report. If the grantee has made 
changes to the report, the submission shall also include the comments 
of the local homeless assistance board or State homeless assistance 
board on the changes. The report shall be submitted at such time as the 
Secretary shall prescribe and contain an assessment of the performance 
of the grantee as measured against any specific performance measures 
and benchmarks (developed under section 403), the national performance 
measures and benchmarks (as established under subsection (a)), and such 
other information as the Secretary shall prescribe. The grantee shall 
make the report available to citizens, public agencies, and other 
interested parties in the jurisdiction of the grantee in sufficient 
time to permit them to comment on the report before its submission.
    ``(c) Performance Reviews, Audits, and Grant Adjustments.--
            ``(1) Performance reviews and audits.--The Secretary shall, 
        not less than annually, make such reviews and audits as may be 
        necessary or appropriate to determine--
                    ``(A) in the case of a grantee (other than a 
                grantee referred to in subparagraph (B)), whether the 
                grantee--
                            ``(i) has carried out its activities in a 
                        timely manner;
                            ``(ii) has made progress toward 
                        implementing the continuum of care system in 
                        conformity with its application under this 
                        title; and
                            ``(iii) has carried out its activities and 
                        certifications in accordance with the 
                        requirements of this title and other applicable 
                        laws; and
                    ``(B) in the case of States distributing grant 
                amounts to State recipients, whether the State--
                            ``(i) has distributed amounts to State 
                        recipients in a timely manner and in 
                        conformance with the method of distribution 
                        described in its application;
                            ``(ii) has carried out its activities and 
                        certifications in compliance with the 
                        requirements of this title and other applicable 
                        laws; and
                            ``(iii) has made such performance reviews 
                        and audits of the State recipients as may be 
                        necessary or appropriate to determine whether 
                        they have satisfied the applicable performance 
                        criteria contained in subparagraph (A).
            ``(2) Grant adjustments.--Pursuant to section 407(b)(4), 
        the Secretary may make appropriate adjustments in the amount of 
        grants in accordance with the Secretary's findings under this 
        subsection. With respect to assistance made available for State 
        recipients, the Secretary may adjust, reduce, or withdraw such 
        assistance, or take other action as appropriate in accordance 
        with the Secretary's performance reviews and audits under this 
        subsection, except that amounts already properly expended on 
        eligible activities under this title shall not be recaptured or 
        deducted from future assistance to such recipients.

``SEC. 411. NONDISCRIMINATION IN PROGRAMS AND ACTIVITIES.

     No person in the United States shall, on the ground of race, 
color, national origin, religion, or sex, be excluded from 
participation in, be denied the benefits of, or be subjected to 
discrimination under any program or activity funded in whole or in part 
with funds made available under this title. Any prohibition against 
discrimination on the basis of age under the Age Discrimination Act of 
1975 or with respect to an otherwise qualified individual with a 
disability, as provided in section 504 of the Rehabilitation Act of 
1973, shall also apply to any such program or activity.

``SEC. 412. ENVIRONMENTAL PROTECTION.

    ``(a) Purpose.--The purpose of this section is to authorize a 
procedure for the assumption of environmental review responsibilities 
of the Secretary by States, units of general local government, and 
insular areas in connection with assistance provided under this title. 
This procedure shall be designed to ensure--
            ``(1) that the policies of the National Environmental 
        Policy Act of 1969 and other provisions of law which further 
        the purposes of such Act (as specified by the Secretary) are 
        most effectively implemented in connection with the provision 
        of such assistance; and
            ``(2) undiminished protection of the environment to the 
        public.
    ``(b) Basic Authority.--The Secretary may, in lieu of the 
environmental protection procedures otherwise applicable and in 
accordance with the provisions of this section, provide for the release 
of funds for particular projects or activities upon the request of a 
recipient of the assistance--
            ``(1) if the recipient--
                    ``(A) is a State, unit of general local government, 
                or insular area; and
                    ``(B) assumes all of the responsibilities for 
                environmental review, decisionmaking, and action 
                pursuant to the Act and the other provisions of law 
                referred to in subsection (a) that would otherwise 
                apply to the Secretary in connection with the provision 
                of assistance to such projects or activities; or
            ``(2) in the case of other recipients, if the State, unit 
        of general local government, or insular area, as designated by 
        the Secretary, assumes all of the responsibilities in 
        accordance with paragraph (1)(B).
    ``(c) Procedure.--The Secretary shall approve the release of funds 
for projects or activities subject to the procedures authorized by this 
section only if the recipient submits to the Secretary a request for 
such release--
            ``(1) not less than 15 days before such release, except 
        that this paragraph shall not apply in the case of a project or 
        activity proposed in an area covered by a declaration by the 
        President of a major disaster or emergency under the Robert T. 
        Stafford Disaster Relief and Emergency Assistance Act; and
            ``(2) before any commitment of funds or other assistance 
        for such projects (other than for environmental studies and 
        such other purposes as the Secretary shall specify, consistent 
        with the Act and the other provisions of law referred to in 
        subsection (a)).
The request for release shall be accompanied by a certification by the 
State, unit of general local government, or insular area which meets 
the requirements of subsection (e). The Secretary's approval of any 
such certification shall be deemed to satisfy the Secretary's 
responsibilities under the Act and the other provisions of law referred 
to in subsection (a), insofar as those responsibilities relate to the 
provision of assistance for projects to be carried out pursuant thereto 
which are covered by the certification.
    ``(d) Certification.--A certification under the procedures 
authorized by this section shall--
            ``(1) be in a form acceptable to the Secretary;
            ``(2) be executed by the chief executive officer or other 
        officer of the State, unit of general local government, or 
        insular area who qualifies as determined by the Secretary;
            ``(3) specify that the State, unit of general local 
        government, or insular area has fully carried out its 
        responsibilities, as described in subsection (b); and
            ``(4) specify that the certifying officer--
                    ``(A) consents to assume the status of a 
                responsible Federal official under the Act and the 
                other provisions of law referred to in subsection (a), 
                insofar as the provisions of the Act or the other 
                provisions of law apply pursuant to subsection (a); and
                    ``(B) is authorized and consents on behalf of the 
                State, unit of general local government, or insular 
                area and himself or herself to accept the jurisdiction 
                of the Federal courts for the purpose of enforcement of 
                the responsibilities as such an official.
    ``(e) Approval by States.--If a unit of general local government 
carries out the responsibilities described in subsection (d), the 
Secretary may permit the State (or, where the assistance is provided 
through the State, the Secretary may require the State) to perform 
those actions of the Secretary described in subsection (c). The 
performance of such actions by the State, where permitted or required 
by the Secretary, shall be deemed to satisfy the Secretary's 
responsibilities referred to in the last sentence of subsection (c).
    ``(f) Implementation.--
            ``(1) The Secretary shall implement this section after 
        consultation with the Council on Environmental Quality. The 
        implementation shall include provision--
                    ``(A) for monitoring of the performance of 
                environmental reviews under this section;
                    ``(B) in the discretion of the Secretary, for the 
                provision or facilitation of training for such 
                performance;
                    ``(C) subject to the discretion of the Secretary, 
                for suspension or termination by the Secretary of the 
                assumption under paragraph (1); and
                    ``(D) in the discretion of the Secretary, for the 
                imposition of appropriate sanctions for failure to 
                comply with responsibilities assumed under this 
                section, including the denial, withdrawal, reduction, 
                or abatement of assistance.
            ``(2) The Secretary's duty under subparagraph (A) shall not 
        be construed to limit or reduce any responsibility assumed by a 
        State, unit of general local government, or insular area with 
        respect to any particular project under this section.

``SEC. 413. CONSULTATION.

    ``In carrying out the provisions of this title, including their 
implementation, the Secretary shall consult with other Federal 
departments and agencies administering programs affecting homeless 
individuals and families.

``SEC. 414. RETENTION OF RECORDS, REPORTS, AND AUDITS.

    ``(a) Retention of Records.--Each recipient shall keep such records 
as may be reasonably necessary--
            ``(1) to disclose the amounts and the disposition of the 
        grant amounts, including the types of activities funded and the 
        nature of populations served with these funds; and
            ``(2) to ensure compliance with the requirements of this 
        title.
    ``(b) Access to Documents by the Secretary.--The Secretary shall 
have access for the purpose of audit and examination to any books, 
documents, papers, and records of any recipient that are pertinent to 
grant amounts received in connection with this title.
    ``(c) Access to Documents by the Comptroller General.--The 
Comptroller General of the United States, or any duly authorized 
representative of the Comptroller General, shall have access for the 
purpose of audit and examination to any books, documents, papers, and 
records of any recipient that are pertinent to grant amounts received 
in connection with this title.''.

SEC. 4. REPEAL AND SAVINGS PROVISIONS.

     (a) Title IV Before Amendment by This Act.--
             (1) In General.--The amendments made by this Act to title 
        IV of the Stewart B. McKinney Homeless Assistance Act shall be 
        effective upon enactment.
             (2) Authority to provide assistance.--On and after the 
        effective date of this Act, the Secretary may not make 
        assistance available under title IV (as it existed before such 
        effective date), except pursuant to a legally binding 
        commitment entered into before that date.
             (3) Law governing.--Any amounts made available under title 
        IV before the effective date of this Act shall continue to be 
        governed by the provisions of that title, as they existed 
        immediately before that date, except that each grantee may, in 
        its discretion, provide for the use, in accordance with the 
        provisions of title IV (as amended by this Act), of any such 
        amounts that it has not obligated.
             (4) Status of funds.--Any amounts appropriated under title 
        IV before the effective date of this Act that are available for 
        obligation immediately before such effective date, or that 
        become available for obligation on or after that date, shall be 
        transferred and added to amounts appropriated for title IV (as 
        amended by this Act), and shall be available for use in 
        accordance with the provisions of such title IV. Any amounts so 
        transferred shall remain available for obligation only for the 
        time periods for which such respective amounts were available 
        before such transfer.
     (b) Innovative Homeless Initiatives Demonstration.--
             (1) In general.--Section 2 of the HUD Demonstration Act of 
        1993 is hereby repealed.
             (2) Authority to provide assistance.--On and after the 
        effective date of this Act, the Secretary may not make 
        assistance available under section 2 (as it existed immediately 
        before such effective date), except pursuant to a legally 
        binding commitment entered into before that date.
             (3) Law governing.--Any amounts made available under 
        section 2 before the effective date of this Act shall continue 
        to be governed by the provisions of that section, as they 
        existed immediately before that date, except that each grantee 
        may, in its discretion, provide for the use, in accordance with 
        the provisions of title IV (as amended by this Act), of any 
        such amounts that it has not obligated.
             (4) Status of funds.--Any amounts appropriated under 
        section 2 before the effective date of this Act that are 
        available for obligation immediately before such date, or that 
        become available for obligation on or after that date, shall be 
        transferred and added to amounts appropriated for title IV (as 
        amended by this Act), and shall be available for use in 
        accordance with the provisions of such title IV. Any amounts so 
        transferred shall remain available for obligation only for the 
        time periods for which such respective amounts were available 
        before such transfer.

SEC. 5. IMPLEMENTATION.

     (a) Initial Allocation of Assistance.--Not later than the 
expiration of the 60-day period following the date of enactment of a 
law appropriating funds to carry out title IV (as amended by this Act), 
the Secretary shall notify each allocation unit of general local 
government, insular area, and State of its allocation under the 
Homeless Assistance Performance Fund.
    (b) Issuance of Necessary Regulations.--Notwithstanding 42 U.S.C. 
3535(o) or 24 CFR part 10, the Secretary shall issue such regulations 
as may be necessary to implement any provision of title I of this Act, 
and any amendment made by title I of this Act, in accordance with 
section 552 or 553 of title 5, United States Code, as determined by the 
Secretary.
    (c) Use of Existing Rules.--In implementing any provision of title 
I of this Act, the Secretary may, in the Secretary's discretion, 
provide for the use of existing rules to the extent appropriate, 
without the need for further rulemaking.

SEC. 6. REPORT AND ALLOCATION METHOD.

    (a) Report.--Within two years of enactment of this Act, the 
Secretary shall submit a report to Congress. The report shall include--
            (1) an assessment of the progress of establishing continuum 
        of care systems for homeless individuals under title IV of the 
        Stewart B. McKinney Homeless Assistance Act (as amended by this 
        Act);
            (2) any recommendations for amendments to the program 
        structure under such title IV to better serve homeless 
        individuals;
            (3) an analysis of the best available methodologies for 
        measuring the geographic distribution of homelessness; and
            (4) one or more options for a method for allocating 
        assistance under section 407(b) of such title IV.
    (b) Allocation Method.--Not less than 90 days after submission of 
the report to Congress, the Secretary shall publish a proposed rule in 
the Federal Register setting forth a method for allocating assistance 
that shall take into account the findings in the report, and such other 
factors as the Secretary determines to be relevant. The final rule 
shall take effect not less than nine months after the date that the 
proposed rule is published.
    (c) Supersede Allocation Method Under Title IV.--The authority for 
the method for allocating assistance established by final rule under 
subsection (b), and any subsequent amendments to such rule, shall upon 
promulgation, be the authority for the allocation method, in lieu of 
the method set forth under section 407(b) of such title IV.

SEC. 7. CONFORMING CHANGES TO TABLE OF CONTENTS.

     Section 101(b) of the Stewart B. McKinney Homeless Assistance Act 
is amended by striking the matter relating to the heading for title IV 
and all that follows through the item relating to section 492 and 
inserting the following:

            ``TITLE IV--HOMELESS ASSISTANCE PERFORMANCE FUND

    ``Sec. 401. Definitions.
    ``Sec. 402. Authorizations.
    ``Sec. 403. Application.
    ``Sec. 404. Eligible Projects and Activities.
    ``Sec. 405. Matching Requirement and Maintenance of Effort.
    ``Sec. 406. Responsibilities of Recipients, Project Sponsors, and 
                            Owners.
    ``Sec. 407. Allocation and Distribution of Funds.
    ``Sec. 408. Administration of Program.
    ``Sec. 409. Citizen Participation.
    ``Sec. 410. Performance Reports, Reviews, Audits, and Grant 
                            Adjustments.
    ``Sec. 411. Nondiscrimination in Programs and Activities.
    ``Sec. 412. Environmental Protection.
    ``Sec. 413. Consultation.
    ``Sec. 414. Retention of Records, Reports, and Audits.''.

 TITLE II--MANAGEMENT IMPROVEMENTS: HOME AND HOPE FOR HOMEOWNERSHIP OF 
                      SINGLE FAMILY HOMES PROGRAMS

SEC. 11. DETERMINATION OF LOW-INCOME ELIGIBILITY FOR HOME HOMEOWNERSHIP 
              ASSISTANCE.

    (a) Income Targeting.--Section 214(2) of the Cranston-Gonzalez 
National Affordable Housing Act is amended by striking ``at the time of 
occupancy or at the time funds are invested, whichever is later''.
    (b) Qualification as Affordable Housing.--Section 215(b)(2) of such 
Act is amended to read as follows:
            ``(2) is the principal residence of an owner whose family 
        qualifies as a low-income family--
                    ``(A) in the case of a contract to purchase 
                existing housing, at the time of purchase;
                    ``(B) in the case of a lease-purchase agreement for 
                existing housing or for housing to be constructed, at 
                the time the agreement is signed; or
                    ``(C) in the case of a contract to purchase housing 
                to be constructed, at the time the contract is 
                signed;''.

SEC. 12. STABILIZATION OF HOME FUNDING THRESHOLDS AND REVISION OF 
              TIMING REQUIREMENTS FOR NOTIFICATIONS AND SUBMISSIONS.

    (a) Participation by States and Local Governments.--Section 216 of 
the Cranston-Gonzalez National Affordable Housing Act is amended--
            (1) in paragraph (1), by striking ``(or, during the first 
        year after enactment of this Act, not later than 20 days after 
        (A) funds to carry out this subtitle are provided in an 
        appropriations Act, or (B) regulations to implement this 
        subtitle are promulgated, whichever is later)'';
            (2) by revising paragraph (3) to read as follows:
            ``(3) Eligibility.--A jurisdiction shall be eligible to 
        become a participating jurisdiction if its formula allocation 
        under section 217 is $500,000 or more.'';
            (3) in paragraph (4), by striking ``not later than 30 days 
        after receiving notification under paragraph (1)'' and 
        inserting ``within a period specified by the Secretary'';
            (4) by revising paragraph (5) to read as follows:
            ``(5) Submission of strategy.--An eligible jurisdiction 
        shall submit to the Secretary, within a period specified by the 
        Secretary, a comprehensive housing affordability strategy in 
        accordance with section 105.'';
            (5) by revising the first sentence of paragraph (9) to read 
        as follows:
        ``The Secretary may revoke a jurisdiction's designation as a 
        participating jurisdiction if the Secretary finds, after 
        reasonable notice and opportunity for hearing, that the 
        jurisdiction is unwilling or unable to carry out the provisions 
        of this title.''; and
            (6) by striking paragraph (10).
    (b) Formula Allocation.--Section 217(b) of the Cranston-Gonzalez 
National Affordable Housing Act is amended--
            (1) in paragraph (3)--
                     (A) in the first sentence, by striking ``only 
                those jurisdictions that are allocated an amount of 
                $500,000 or greater shall receive an allocation'' and 
                inserting in lieu thereof the following: 
                ``jurisdictions that are allocated an amount of 
                $500,000 or more, and participating jurisdictions that 
                are allocated an amount less than $500,000 except 
                consortia that fail to renew the membership of all of 
                their member jurisdictions, shall receive an 
                allocation''; and
                     (B) in the second sentence, by striking ``, except 
                as provided in paragraph (4)''; and
            (2) by striking paragraph (4).

SEC. 13. DETERMINATION OF HOME MATCH ON PROGRAM YEAR BASIS.

    Section 220(a), section 220(d)(1), sections 220(d)(3)(A) and (B), 
and section 220(d)(5) of the Cranston-Gonzalez National Affordable 
Housing Act are amended by striking ``fiscal year'' each place it 
appears and inserting ``program year''.

SEC. 14. TENANT AND PARTICIPANT PROTECTIONS UNDER THE HOME PROGRAM.

    The second sentence of section 225(b) of the Cranston-Gonzalez 
National Affordable Housing Act is amended to read as follows: ``Any 
termination or refusal to renew shall be consistent with applicable 
State and local law.''.

SEC. 15. ELIGIBILITY OF PRIVATE PROPERTY UNDER THE HOPE FOR 
              HOMEOWNERSHIP OF SINGLE FAMILY HOMES PROGRAM.

    Section 446(4) of the Cranston-Gonzalez National Affordable Housing 
Act is amended to read as follows:
            ``(4) The term `eligible property' means a single family 
        property containing no more than four units.''.
                                 <all>