[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2716 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 2716

    To amend title 38, United States Code, to revise, improve, and 
   consolidate provisions of law providing benefits and services for 
                           homeless veterans.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             August 2, 2001

   Mr. Smith of New Jersey (for himself, Mr. Buyer, and Mr. Simmons) 
 introduced the following bill; which was referred to the Committee on 
   Veterans' Affairs, and in addition to the Committee on Financial 
Services, for a period to be subsequently determined by the Speaker, in 
   each case for consideration of such provisions as fall within the 
                jurisdiction of the committee concerned

_______________________________________________________________________

                                 A BILL


 
    To amend title 38, United States Code, to revise, improve, and 
   consolidate provisions of law providing benefits and services for 
                           homeless veterans.

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

SECTION 1. SHORT TITLE; TABLE OF CONTENTS; REFERENCES TO TITLE 38, 
              UNITED STATES CODE.

    (a) Short Title.--This Act may be cited as the ``Homeless Veterans 
Assistance Act of 2001''.
    (b) Table of Contents.--The table of contents of this Act is as 
follows:

Sec. 1. Short title; table of contents; references to title 38, United 
                            States Code.
Sec. 2. Sense of the Congress regarding the needs of homeless veterans 
                            and the responsibility of Federal agencies.
Sec. 3. Improvement and consolidation of provisions of law relating to 
                            homeless veterans.
Sec. 4. Rental assistance vouchers for HUD Veterans Affairs supported 
                            housing program.
Sec. 5. Increase in representative payee services for homeless 
                            veterans.
Sec. 6. Joint methodology to monitor results of services furnished to 
                            homeless veterans.
Sec. 7. Enhanced-use leases for facilities that serve homeless 
                            veterans.
Sec. 8. Authorization of additional domiciliary care programs.
Sec. 9. Demonstration program relating to referral and counseling for 
                            veterans transitioning from certain 
                            institutions who are at risk for 
                            homelessness.
Sec. 10. Demonstration program for grants for independent group homes 
                            for recovering veterans.
    (c) References to Title 38, United States Code.--Except as 
otherwise expressly provided, whenever in this Act an amendment or 
repeal is expressed in terms of an amendment to, or repeal of, a 
section or other provision, the reference shall be considered to be 
made to a section or other provision of title 38, United States Code.

SEC. 2. SENSE OF THE CONGRESS REGARDING THE NEEDS OF HOMELESS VETERANS 
              AND THE RESPONSIBILITY OF FEDERAL AGENCIES.

    It is the sense of the Congress that--
            (1) Federal programs for the assistance of homeless 
        veterans that are effective should be identified and expanded;
            (2) federally funded programs for homeless veterans should 
        be held accountable for achieving clearly defined results;
            (3) Federal efforts to assist homeless veterans should 
        include prevention of homelessness; and
            (4) Federal agencies, particularly the Department of 
        Veterans Affairs and the Department of Housing and Urban 
        Development, should cooperate more fully to address the problem 
        of homelessness among veterans.

SEC. 3. IMPROVEMENT AND CONSOLIDATION OF PROVISIONS OF LAW RELATING TO 
              HOMELESS VETERANS.

    (a) In General.--(1) Part II is amended by inserting after chapter 
19 the following new chapter:

              ``CHAPTER 20--BENEFITS FOR HOMELESS VETERANS

                  ``subchapter i--purpose; definitions

``Sec.
``2001. Purpose.
``2002. Definitions.
            ``subchapter ii--comprehensive service programs

``2011. Grants.
``2012. Per diem payments.
``2013. Authorization of appropriations.
                       ``subchapter iii--training

``2021. Homeless veterans' reintegration programs.
 ``subchapter iv--treatment and rehabilitation for seriously mentally 
                       ill and homeless veterans

``2031. General treatment.
``2032. Therapeutic housing.
``2033. Additional services at certain locations.
``2034. Coordination with other agencies and organizations.
``2035. Representative payee services.
                   ``subchapter v--housing assistance

``2041. Housing assistance for homeless veterans.
 ``subchapter vi--loan guarantees for multifamily transitional housing

``2051. General authority.
``2052. Requirements.
``2053. Default.
``2054. Audit.
               ``subchapter vii--miscellaneous provisions

``2061. Annual report on assistance to homeless veterans.

                  ``SUBCHAPTER I--PURPOSE; DEFINITIONS

``Sec. 2001. Purpose
    ``The purpose of this chapter is to provide for the special needs 
of homeless veterans.
``Sec. 2002. Definitions
    ``In this chapter:
            ``(1) The term `homeless veteran' means a homeless 
        individual who is a veteran.
            ``(2) The term `homeless individual' has the meaning given 
        such term by section 103 of the McKinney-Vento Homeless 
        Assistance Act (42 U.S.C. 11302).

            ``SUBCHAPTER II--COMPREHENSIVE SERVICE PROGRAMS

``Sec. 2011. Grants
    ``(a) Authority To Make Grants.--(1) Subject to the availability of 
appropriations provided for such purpose, the Secretary shall make 
grants to assist eligible entities in establishing programs to furnish, 
and expanding or modifying existing programs for furnishing, the 
following to homeless veterans:
            ``(A) Outreach.
            ``(B) Rehabilitative services.
            ``(C) Vocational counseling and training
            ``(D) Transitional housing assistance.
    ``(2) The authority of the Secretary to make grants under this 
section expires on September 30, 2003.
    ``(b) Criteria for Award of Grants.--The Secretary shall establish 
criteria and requirements for the award of a grant under this section, 
including criteria for entities eligible to receive such grants, and 
shall publish such criteria and requirements in the Federal Register. 
The criteria established under this section shall include the 
following:
            ``(1) Specification as to the kinds of projects for which 
        such grant support is available, which shall include--
                    ``(A) expansion, remodeling, or alteration of 
                existing buildings, or acquisition of facilities, for 
                use as service centers, transitional housing, or other 
                facilities to serve homeless veterans; and
                    ``(B) procurement of vans for use in outreach to, 
                and transportation for, homeless veterans to carry out 
                the purposes set forth in subsection (a).
            ``(2) Specification as to the number of projects for which 
        grant support is available.
            ``(3) Appropriate criteria for the staffing for the 
        provision of the services for which a grant under this section 
        is furnished.
            ``(4) Provisions to ensure that the award of grants under 
        this section--
                    ``(A) shall not result in duplication of ongoing 
                services; and
                    ``(B) to the maximum extent practicable, shall 
                reflect appropriate geographic dispersion and an 
                appropriate balance between urban and nonurban 
                locations.
            ``(5) Provisions to ensure that an entity receiving a grant 
        shall meet fire and safety requirements established by the 
        Secretary, which shall include such State and community 
        requirements that may apply, but fire and safety requirements 
        applicable to buildings of the Federal Government shall not 
        apply to real property to be used by a grantee in carrying out 
        the grant.
            ``(6) Specifications as to the means by which an entity 
        receiving a grant may contribute in-kind services to the start-
        up costs of any project for which support is sought and the 
        methodology for assigning a cost to that contribution for 
        purposes of subsection (c).
    ``(c) Funding Limitations.--A grant under this section may not be 
used to support operational costs. The amount of a grant under this 
section may not exceed 65 percent of the estimated cost of the 
expansion, remodeling, alteration, acquisition, or procurement provided 
for under this section.
    ``(d) Eligible Entities.--The Secretary may make a grant under this 
section to an entity applying for such a grant only if the applicant 
for the grant--
            ``(1) is a public or nonprofit private entity with the 
        capacity (as determined by the Secretary) to effectively 
        administer a grant under this section;
            ``(2) has demonstrated that adequate financial support will 
        be available to carry out the project for which the grant has 
        been sought consistent with the plans, specifications, and 
        schedule submitted by the applicant; and
            ``(3) has agreed to meet the applicable criteria and 
        requirements established under subsections (b) and (g) (and the 
        Secretary has determined that the applicant has demonstrated 
        the capacity to meet those criteria and requirements).
    ``(e) Application Requirement.--An entity described in subsection 
(d) desiring to receive assistance under this section shall submit to 
the Secretary an application. The application shall set forth the 
following:
            ``(1) The amount of the grant requested with respect to a 
        project.
            ``(2) A description of the site for such project.
            ``(3) Plans, specifications, and the schedule for 
        implementation of such project in accordance with requirements 
        prescribed by the Secretary under subsection (b).
            ``(4) Reasonable assurance that upon completion of the work 
        for which assistance is sought, the program will become 
        operational and the facilities will be used principally to 
        provide to veterans the services for which the project was 
        designed, and that not more than 25 percent of the services 
        provided will serve clients who are not receiving such services 
        as veterans.
    ``(f) Program Requirements.--The Secretary may not make a grant to 
an applicant under this section unless the applicant, in the 
application for the grant, agrees to each of the following 
requirements:
            ``(1) To provide the services for which the grant is 
        furnished at locations accessible to homeless veterans.
            ``(2) To maintain referral networks for, and aid homeless 
        veterans in, establishing eligibility for assistance, and 
        obtaining services, under available entitlement and assistance 
        programs.
            ``(3) To ensure the confidentiality of records maintained 
        on homeless veterans receiving services under the grant.
            ``(4) To establish such procedures for fiscal control and 
        fund accounting as may be necessary to ensure proper 
        disbursement and accounting with respect to the grant and to 
        such payments as may be made under section 2012 of this title.
            ``(5) To seek to employ homeless veterans and formerly 
        homeless veterans in positions created for purposes of the 
        grant for which those veterans are qualified.
    ``(g) Service Center Requirements.--In addition to criteria 
established under subsection (b), the Secretary shall, in the case of 
an application for a grant for a service center for homeless veterans, 
require each of the following:
            ``(1) That such center provide services to homeless 
        veterans during such hours as the Secretary may specify and be 
        open to such veterans on an as-needed, unscheduled basis.
            ``(2) That space at such center will be made available, as 
        mutually agreeable, for use by staff of the Department of 
        Veterans Affairs, the Department of Labor, and other 
        appropriate agencies and organizations in assisting homeless 
        veterans served by such center.
            ``(3) That such center be equipped and staffed to provide, 
        or to assist in providing, health care, mental health services, 
        hygiene facilities, benefits and employment counseling, meals, 
        transportation assistance, and such other services as the 
        Secretary determines necessary.
            ``(4) That such center may be equipped and staffed to 
        provide, or to assist in providing, job training and job 
        placement services (including job readiness, job counseling, 
        and literacy and skills training), as well as any outreach and 
        case management services that may be necessary to carry out 
        this paragraph.
``Sec. 2012. Per diem payments
    ``(a) Per Diem Payments for Furnishing Services to Homeless 
Veterans.--(1) Subject to the availability of appropriations provided 
for such purpose, the Secretary, pursuant to such criteria as the 
Secretary shall prescribe, shall provide to a recipient of a grant 
under section 2011 of this title (or an entity eligible to receive a 
grant under that section which after November 10, 1992, establishes a 
program that the Secretary determines carries out the purposes 
described in that section) per diem payments for services furnished to 
any homeless veteran--
            ``(A) whom the Secretary has referred to the grant 
        recipient (or entity eligible for such a grant); or
            ``(B) for whom the Secretary has authorized the provision 
        of services.
    ``(2) The rate for such per diem payments shall be the rate 
applicable for domiciliary care under section 1741(a)(1)(A) of this 
title.
    ``(3) In a case in which the Secretary has authorized the provision 
of services, per diem payments under paragraph (1) may be paid 
retroactively for services provided not more than three days before the 
authorization was provided.
    ``(b) In-Kind Assistance.--In lieu of per diem payments under this 
section, the Secretary may, with the approval of the grant recipient, 
provide in-kind assistance (through the services of employees of the 
Department of Veterans Affairs and the use of other Department 
resources) to a grant recipient (or entity eligible for such a grant) 
under section 2011 of this title.
    ``(c) Inspections.--The Secretary may inspect any facility of an 
entity eligible for payments under subsection (a) at such times as the 
Secretary considers necessary. No per diem payment may be made to an 
entity under this section unless the facilities of that entity meet 
such standards as the Secretary shall prescribe.
    ``(d) Recovery of Unused Grant Funds.--(1) If a grant recipient (or 
entity eligible for such a grant) under section 2011 of this title does 
not establish a program in accordance with that section or ceases to 
furnish services under such a program for which the grant was made, the 
United States shall be entitled to recover from such recipient or 
entity the total of all unused grant amounts made under this section to 
such recipient or entity in connection with such program.
    ``(2) Any amount recovered by the United States under paragraph (1) 
may be obligated by the Secretary without fiscal year limitation to 
carry out provisions of this subchapter.
``Sec. 2013. Authorization of appropriations
    ``There are authorized to be appropriated to carry out this 
subchapter amounts as follows:
            ``(1) $50,000,000 for fiscal year 2000.
            ``(2) $50,000,000 for fiscal year 2001.
            ``(3) $60,000,000 for fiscal year 2002.
            ``(4) $75,000,000 for fiscal year 2003.
            ``(5) $75,000,000 for fiscal year 2004.
            ``(6) $75,000,000 for fiscal year 2005.

                       ``SUBCHAPTER III--TRAINING

``Sec. 2021. Homeless veterans' reintegration programs
    ``(a) In General.--Subject to the availability of appropriations 
provided for under subsection (d) and made available for such purpose, 
the Secretary of Labor shall conduct, directly or through grant or 
contract, such programs as the Secretary determines appropriate to 
provide job training, counseling, and placement services to expedite 
the reintegration of homeless veterans into the labor force.
    ``(b) Requirement To Monitor Expenditures of Funds.--(1) The 
Secretary of Labor shall collect such information as the Secretary 
considers appropriate to monitor and evaluate the distribution and 
expenditure of funds appropriated to carry out this section. The 
information shall include data with respect to the results or outcomes 
of the services provided to each homeless veteran under this section.
    ``(2) The information under paragraph (1) shall be furnished to the 
Secretary of Labor in such form as the Secretary considers appropriate.
    ``(c) Administration Through the Assistant Secretary of Labor for 
Veterans' Employment and Training.--The Secretary of Labor shall carry 
out this section through the Assistant Secretary of Labor for Veterans' 
Employment and Training.
    ``(d) Annual Report to Congress.--The Secretary of Labor shall 
submit to Congress an annual report that evaluates services furnished 
to veterans under this section, and includes an analysis of the 
information collected under subsection (c).
    ``(e) Authorization of Appropriations.--(1) There are authorized to 
be appropriated to carry out this section amounts as follows:
            ``(A) $10,000,000 for fiscal year 2000.
            ``(B) $15,000,000 for fiscal year 2001.
            ``(C) $20,000,000 for fiscal year 2002.
            ``(D) $20,000,000 for fiscal year 2003.
    ``(2) Funds appropriated to carry out this section shall remain 
available until expended. Funds obligated in any fiscal year to carry 
out this section may be expended in that fiscal year and the succeeding 
fiscal year.

                   ``SUBCHAPTER V--HOUSING ASSISTANCE

               ``SUBCHAPTER VII--MISCELLANEOUS PROVISIONS

``Sec. 2061. Annual report on assistance to homeless veterans
    ``(a) Annual Report.--Not later than April 15 of each year, the 
Secretary shall submit to the Committees on Veterans' Affairs of the 
Senate and House of Representatives a report on the activities of the 
Department during the calendar year preceding the report under programs 
of the Department under this chapter and other programs of the 
Department for the provision of assistance to homeless veterans.
    ``(b) Contents of Report.--Each report under subsection (a) shall 
include the following:
            ``(1) The number of homeless veterans provided assistance 
        under those programs.
            ``(2) The cost to the Department of providing such 
        assistance under those programs.
            ``(3) Any other information on those programs and on the 
        provision of such assistance that the Secretary considers 
        appropriate.
            ``(4) The Secretary's evaluation of the effectiveness of 
        the programs of the Department (including residential work-
        therapy programs, programs combining outreach, community-based 
        residential treatment, and case-management, and contract care 
        programs for alcohol and drug-dependence or use disabilities) 
        in providing assistance to homeless veterans.
            ``(5) The Secretary's evaluation of the effectiveness of 
        programs established by recipients of grants under section 2011 
        of this title and a description of the experience of those 
        recipients in applying for and receiving grants from the 
        Secretary of Housing and Urban Development to serve primarily 
        homeless persons who are veterans.''.
    (2) The tables of chapters before part I and at the beginning of 
part II are each amended by inserting after the item relating to 
chapter 19 the following new item:

``20. Benefits for homeless veterans........................    2001''.
    (b) Health Care.--(1) Subchapter VII of chapter 17 is transferred 
to chapter 20 (as added by subsection (a)), inserted after section 2021 
(as so added), and redesignated as subchapter IV, and sections 1771, 
1772, 1773, and 1774 therein are redesignated as sections 2031, 2032, 
2033, and 2034, respectively.
    (2) Subsection (a)(3) of section 2031, as so transferred and 
redesignated, is amended by striking ``section 1772 of this title'' and 
inserting ``section 2032 of this title''.
    (c) Housing Assistance.--Section 3735 is transferred to chapter 20 
(as added by subsection (a)), inserted after the heading for subchapter 
V, and redesignated as section 2041.
    (d) Multifamily Transitional Housing.--(1) Subchapter VI of chapter 
37 (other than section 3771) is transferred to chapter 20 (as added by 
subsection (a)) and inserted after section 2041 (as transferred and 
redesignated by subsection (c)), and sections 3772, 3773, 3774, and 
3775 therein are redesignated as sections 2051, 2052, 2053, and 2054, 
respectively.
    (2) Such subchapter is amended--
            (A) in the heading, by striking ``FOR HOMELESS VETERANS'';
            (B) in subsection (d)(1) of section 2051, as so transferred 
        and redesignated, by striking ``section 3773 of this title'' 
        and inserting ``section 2052 of this title''; and
            (C) in subsection (a) of section 2052, as so transferred 
        and redesignated, by striking ``section 3772 of this title'' 
        and inserting ``section 2051 of this title''.
    (3) Section 3771 is repealed.
    (e) Repeal of Codified Provisions.--The following provisions of law 
are repealed:
            (1) Sections 3, 4, and 12 of the Homeless Veterans 
        Comprehensive Service Programs Act of 1992 (Public Law 102-590; 
        38 U.S.C. 7721 note).
            (2) Section 1001 of the Veterans' Benefits Improvements Act 
        of 1994 (Public Law 103-446; 38 U.S.C. 7721 note).
            (3) Section 4111.
            (4) Section 738 of the McKinney-Vento Homeless Assistance 
        Act (42 U.S.C. 11448).
    (f) Clerical Amendments.--
            (1) The table of sections at the beginning of chapter 17 is 
        amended by striking the item relating to subchapter VII and the 
        items relating to sections 1771, 1772, 1773, and 1774.
            (2) The table of sections at the beginning of chapter 37 is 
        amended--
                    (A) by striking the item relating to section 3735; 
                and
                    (B) by striking the item relating to subchapter VI 
                and the items relating to sections 3771, 3772, 3773, 
                3774, and 3775.
            (3) The table of sections at the beginning of chapter 41 is 
        amended by striking the item relating to section 4111.

SEC. 4. RENTAL ASSISTANCE VOUCHERS FOR HUD VETERANS AFFAIRS SUPPORTED 
              HOUSING PROGRAM.

    (a) Increase in Number of Vouchers.--Section 8(o) of the United 
States Housing Act of 1937 (42 U.S.C. 1437f(o)) is amended by adding at 
the end the following new paragraph:
            ``(19) Rental vouchers for veterans affairs supported 
        housing program.--
                    ``(A) Set aside.--Subject to subparagraph (C), the 
                Secretary shall set aside, from amounts made available 
                for rental assistance under this subsection, the 
                amounts specified in subparagraph (B) for use only for 
                providing such assistance through a supported housing 
                program administered in conjunction with the Department 
                of Veterans Affairs. Such program shall provide rental 
                assistance on behalf of homeless veterans who have 
                chronic mental illnesses or chronic substance use 
                disorders, shall require agreement of the veteran to 
                continued treatment for such mental illness or 
                substance use disorder as a condition of receipt of 
                such rental assistance, and shall ensure such treatment 
                and appropriate case management for each veteran 
                receiving such rental assistance.
                    ``(B) Amount.--The amount specified in this 
                subparagraph is--
                            ``(i) for fiscal year 2003, the amount 
                        necessary to provide 500 vouchers for rental 
                        assistance under this subsection;
                            ``(ii) for fiscal year 2004, the amount 
                        necessary to provide 1,000 vouchers for rental 
                        assistance under this subsection;
                            ``(iii) for fiscal year 2005, the amount 
                        necessary to provide 1,500 vouchers for rental 
                        assistance under this subsection; and
                            ``(iv) for fiscal year 2006, the amount 
                        necessary to provide 2,000 vouchers for rental 
                        assistance under this subsection.
                    ``(C) Funding through incremental assistance.--In 
                any fiscal year, to the extent that this paragraph 
                requires the Secretary to set aside rental assistance 
amounts for use under this paragraph in an amount that exceeds that set 
aside in the preceding fiscal year, such requirement shall be effective 
only to such extent or in such amounts as are or have been provided in 
appropriation Acts for such fiscal year for incremental rental 
assistance under this subsection.''.
    (b) Increase in Number of VHA Case Managers.--The Secretary of 
Veterans Affairs shall ensure that the number of case managers in the 
Veterans Health Administration is sufficient to assure that every 
veteran who is provided a housing voucher through section 8(o) of the 
United States Housing Act of 1937 (42 U.S.C. 1437f(o)) is assigned to, 
and is able to be seen as needed by, a case manager.

SEC. 5. INCREASE IN REPRESENTATIVE PAYEE SERVICES FOR HOMELESS 
              VETERANS.

    (a) In General.--Chapter 20 (as added by section 3(a)) is amended 
by inserting after section 2034 (as transferred and redesignated by 
section 3(b)) the following new section:
``Sec. 2035. Representative payee services
    ``The Secretary shall seek to enter into contracts with community 
agencies to provide representative payee services for veterans who are 
not competent to manage their own personal funds. Any such contract 
shall require that an entity acting as representative payee for a 
veteran shall work in consort with care providers of the Veterans 
Health Administration to ensure that all Government funds are used 
appropriately (such as for shelter, nutrition, and necessary health 
care services).''.
    (b) Report.--Not later than March 1, 2003, the Secretary of 
Veterans Affairs shall submit to Congress a report on the Secretary's 
efforts to expand contracts described in section 2035 of title 38, 
United States Code, as added by subsection (a), and on savings from 
cost-of-care avoidance resulting from such contracts.

SEC. 6. JOINT METHODOLOGY TO MONITOR RESULTS OF SERVICES FURNISHED TO 
              HOMELESS VETERANS.

    (a) Results of Veterans Furnished Services under Federal Homeless 
Programs.--The Secretary of Veterans Affairs and the Secretary of 
Housing and Urban Development (hereinafter in this section referred to 
as the ``Secretaries'') shall jointly establish a methodology to 
monitor--
            (1) veterans who have been furnished any service under any 
        program funded or operated by the Department of Veterans 
        Affairs or the Department of Housing and Urban Development 
        under which services are furnished to homeless veterans; and
            (2) any unmet demand by such veterans for any such service.
    (b) Methodology.--(1) The methodology under subsection (a) shall 
include monitoring of standardized measurements and outcomes of such 
services furnished to veterans. Such standardized measurements and 
outcomes include measurable improved performance outcomes in the areas 
of mental illness, substance use disorders, general health, housing, 
and employment.
    (2) Such standardized measurements and outcomes shall provide 
information with respect the following:
            (A) Number of homeless veterans that reside in suitable, 
        permanent housing by reason of such services.
            (B) Number of homeless veterans employed, and their 
        employment earnings, by of such services.
            (C) Number of homeless veterans that have avoided relapses 
        into the conditions that led to previous homelessness, such as 
        mental illness or substance use disorders.
            (D) Any other information that Secretaries determine 
        appropriate to evaluate the outcomes of services furnished to 
        homeless veterans.
    (c) Implementation.--Not later than January 1, 2003, the 
Secretaries shall implement the methodology established under 
subsection (a).
    (d) Annual Report.--Beginning with the annual report to Congress 
required under section 2061 of title 38, United States Code, as added 
by section 3(a), for 2004, the Secretary of Veterans Affairs, after 
consultation with the Secretary of Labor, shall include in that annual 
report results of the monitoring of homeless veterans required under 
this section.

SEC. 7. ENHANCED-USE LEASES FOR FACILITIES THAT SERVE HOMELESS 
              VETERANS.

    (a) Waiver of Competitive Selection Process for Enhanced-Use Leases 
for Properties Used To Serve Homeless Veterans.--Section 8162(b)(1) is 
amended--
            (1) by inserting ``(A)'' after ``(b)(1)''; and
            (2) by adding at the end the following:
    ``(B) In the case of a property that the Secretary determines is 
appropriate for use as a facility to furnish services to homeless 
veterans under chapter 20 of this title, the Secretary may enter into 
an enhanced-use lease without regard to the selection procedures 
required under subparagraph (A).''.
    (b) Effective Date.--The amendments made by subsection (a) shall 
apply to leases entered into on or after the date of the enactment of 
this Act.

SEC. 8. AUTHORIZATION OF ADDITIONAL DOMICILIARY CARE PROGRAMS.

    (a) In General.--The Secretary of Veterans Affairs may establish up 
to ten programs under section 1710(b) of title 38, United States Code 
(in addition to any such program that is established as of the date of 
the enactment of this Act) to provide domiciliary services under 
section 1710(b) of such title to homeless veterans (as defined in 
section 2002(1) of such title (as added by section 3(a)).
    (b) Authorization of Appropriations.--There are authorized to be 
appropriated to the Secretary of Veterans Affairs $5,000,000 for each 
of fiscal years 2003 and 2004 to establish the programs referred to in 
subsection (a).

SEC. 9. DEMONSTRATION PROGRAM RELATING TO REFERRAL AND COUNSELING FOR 
              VETERANS TRANSITIONING FROM CERTAIN INSTITUTIONS WHO ARE 
              AT RISK FOR HOMELESSNESS.

    (a) Program Authority.--The Secretary of Veterans Affairs and the 
Secretary of Labor (hereinafter in this section referred to as the 
``Secretaries'') shall carry out a demonstration program for the 
purpose of determining the costs and benefits of providing referral and 
counseling services to eligible veterans with respect to benefits and 
services available to such veterans under title 38, United States Code, 
and under State law.
    (b) Location of Demonstration Program.--The demonstration program 
shall be carried out in at least six locations. One location shall be a 
penal institution under the jurisdiction of the Bureau of Prisons.
    (c) Scope of Program.--(1) To the extent practicable, the 
demonstration program shall provide both referral and counseling, and 
in the case of counseling, shall include counseling with respect to job 
training and placement, housing, health care, and such other benefits 
to assist the eligible veteran in the transition from institutional 
living.
    (2)(A) To the extent that referral or counseling services are 
provided at a location under the program, referral services shall be 
provided in person during the 60-day period that precedes the date of 
release or discharge of the eligible veteran under subsection 
(f)(1)(B), and counseling services shall be furnished after such date.
    (B) The Secretaries may furnish to officials of penal institutions 
outreach information with respect to referral and counseling services 
for presentation to veterans in the custody of such officials during 
the 18-month period that precedes such date of release or discharge.
    (3) The Secretaries may enter into contracts to carry out the 
counseling required under the demonstration program with entities or 
organizations that meet such requirements as the Secretaries may 
establish.
    (4) In developing the demonstration program, the Secretaries shall 
consult with officials of the Bureau of Prisons, officials of penal 
institutions of States and political subdivisions of States, and such 
other officials as the Secretaries determine appropriate.
    (d) Report.--(1) Not later than two years after the commencement of 
the demonstration program, the Secretary of Veterans Affairs (after 
consultation with the Secretary of Labor) shall submit to the 
Committees on Veterans' Affairs of the Senate and the House of 
Representatives a report on the program.
    (2) The report under paragraph (1) shall include the following:
            (A) A description of the implementation and operation of 
        the program.
            (B) An evaluation of the effectiveness of the program.
            (C) Recommendations, if any, regarding an extension of the 
        program.
    (e) Duration.--The authority of the Secretaries to provide 
counseling services under the demonstration program shall cease on the 
date that is four years after the date of the commencement of the 
demonstration program.
    (f) Definitions.--In this section:
            (1) The term ``eligible veteran'' means a veteran who--
                    (A) is a resident of a penal institution or an 
                institution that provides long-term care for mental 
                illness;
                    (B) is expected to be imminently released or 
                discharged (as the case may be) from the facility or 
                institution; and
                    (C) is at risk for homelessness absent referral and 
                counseling services provided under the program (as 
                determined under guidelines established by the 
                Secretaries).
            (2) The term ``veteran'' has the meaning given that term 
        under section 101(2) of title 38, United States Code.
            (3) The term ``imminent'' means, with respect to a release 
        or discharge under paragraph (1)(B), the 60-day period that 
        ends on the date of such release or discharge.

SEC. 10. DEMONSTRATION PROGRAM FOR GRANTS FOR INDEPENDENT GROUP HOMES 
              FOR RECOVERING VETERANS.

    (a) Establishment of Grant Program.--The Secretary of Veterans 
Affairs (hereinafter in this section referred to as the ``Secretary'') 
shall carry out a demonstration program under which the Secretary shall 
make grants to eligible entities to establish a project to provide 
independent housing units in group houses sponsored by the entities for 
occupancy by veterans recovering from alcohol or other substance use 
disorders.
    (b) Maximum Grant Amount per Group House.--The amount of any 
individual grant under this program for the establishment of a group 
house may not exceed $5,000.
    (c) Eligible Entity.--The Secretary may make a grant under this 
section to an entity applying for such a grant only if the applicant 
for the grant--
            (1) is a nonprofit private entity with the capacity (as 
        determined by the Secretary) to effectively carry out a grant 
        under this section;
            (2) has demonstrated that adequate financial support will 
        be available to carry out the project for which the grant has 
        been sought consistent with the plans, specifications, and 
        schedule submitted by the applicant; and
            (3) has agreed to meet the applicable criteria and 
        requirements established under subsection (e) (and the 
        Secretary has determined that the applicant has demonstrated 
        the capacity to meet those criteria and requirements).
    (d) Application Requirement.--In order to receive a grant under 
this section, an eligible entity shall submit to the Secretary an 
application. The application shall set forth the following:
            (1) The amount of the grant requested with respect to a 
        project.
            (2) A description of the site for such project.
            (3) Plans, specifications, and the schedule for 
        implementation of such project in accordance with requirements 
        prescribed by the Secretary under subsection (e).
    (e) Program Requirements.--The Secretary may not make a grant to an 
applicant under this section unless the applicant, in the application 
for the grant, agrees to each of the following requirements:
            (1) The eligible entity has in effect policies that--
                    (A) prohibit the use of alcohol or any illegal drug 
                in the group house;
                    (B) provide for the immediate expulsion of any 
                resident of the group house who violates the 
                prohibition described in subparagraph (A);
                    (C) provide that payment for the costs of the 
                housing, including fees for rent, and utilities, and 
                all other fees applicable under residential leases on 
                the part of the tenant, are made by the residents of 
                the group house; and
                    (D) provide that rules of conduct for residents of 
                the group house are made by majority vote of the 
                residents, including rules regarding the manner in 
                which applications for residence in the group house are 
                approved.
            (2) A group house shall provide for residence of not more 
        than 10 veterans.
    (f) Recovery of Grant Funds.--(1) If an eligible entity does not 
establish a project in accordance with the requirements of this section 
or ceases to be in accordance with such requirements for which the 
grant was made, the United States shall be entitled to recover from 
such entity the total of all unused grant amounts made under this 
section to such recipient or entity in connection with such project.
    (2) Any amount recovered by the United States under paragraph (1) 
may be obligated by the Secretary without fiscal year limitation to 
carry out provisions of this section.
    (g) Regulations.--Not later than 180 days after the date of the 
enactment of this Act, the Secretary shall promulgate regulations to 
carry out the demonstration program under this section.
    (h) Authorization of Appropriations.--For purposes of carrying out 
this section, there is authorized to be appropriated to the Secretary 
of Veterans Affairs $250,000 for each of fiscal years 2003 and 2004.
    (i) Report.--Not later than three years after the date of the 
enactment of this Act, the Secretary shall submit to the Committees on 
Veterans' Affairs of the Senate and House of Representatives a report 
describing the grants made under this section. The report shall include 
the following:
            (1) An assessment of the effectiveness of the demonstration 
        program, including the number of grants awarded.
            (2) The geographic locations of the group houses 
        established under the program.
            (3) The number of veterans residing in each group house, 
        the average number of veterans in all group houses, and the 
        average length of stay for veterans in group houses.
            (4) The number of veterans who were expelled from such 
        group houses.
            (5) Recommendations for extending, expanding, or modifying 
        the program or funding under this section.
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