[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 2573 Introduced in Senate (IS)]







107th CONGRESS
  2d Session
                                S. 2573

To amend the McKinney-Vento Homeless Assistance Act to reauthorize the 
                      Act, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                              May 23, 2002

   Mr. Reed (for himself, Ms. Collins, Mr. Sarbanes Mr. Chafee, Mr. 
 Schumer, Mr. Akaka, Mr. Carper, Mr. Dodd, and Mr. Corzine) introduced 
the following bill; which was read twice and referred to the Committee 
                 on Banking, Housing, and Urban Affairs

_______________________________________________________________________

                                 A BILL


 
To amend the McKinney-Vento Homeless Assistance Act to reauthorize the 
                      Act, 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.

    This Act may be cited as the ``Community Partnership to End 
Homelessness Act of 2002''.

SEC. 2. FINDINGS AND PURPOSE.

    Section 102 of the McKinney-Vento Homeless Assistance Act (42 
U.S.C. 11301) is amended to read as follows:

``SEC. 102. FINDINGS AND PURPOSE.

    ``(a) Findings.--Congress finds that--
            ``(1) the United States faces a crisis of individuals and 
        families who lack basic affordable housing and appropriate 
        shelter;
            ``(2) assistance from the Federal Government is an 
        important factor in the success of efforts by State and local 
        governments and the private sector to address the problem of 
        homelessness in a comprehensive manner;
            ``(3) there are several Federal Government programs to 
        assist persons experiencing homelessness, including programs 
        for individuals with disabilities, veterans, and youth;
            ``(4) homeless assistance programs must be evaluated on the 
        basis of their effectiveness in reducing homelessness and 
        transitioning individuals and families to permanent housing and 
        stability;
            ``(5) States and units of general local government 
        receiving Federal block grant and other Federal grant funds 
        must be evaluated on the basis of their effectiveness in--
                    ``(A) implementing plans to appropriately discharge 
                individuals to and from mainstream service systems; and
                    ``(B) reducing barriers to participation in 
                mainstream programs, as identified in--
                            ``(i) a report by the General Accounting 
                        Office entitled `Homelessness: Coordination and 
                        Evaluation of Programs Are Essential', issued 
                        February 26, 1999; or
                            ``(ii) a report by the General Accounting 
                        Office entitled `Homelessness: Barriers to 
                        Using Mainstream Programs', issued July 6, 
                        2000;
            ``(6) an effective plan for reducing homelessness should 
        provide a comprehensive housing system (including permanent 
        housing and, as needed, transitional housing) that recognizes 
        that, while some individuals and families experiencing 
        homelessness attain economic viability and independence 
        utilizing transitional housing and then permanent housing, 
        others can reenter society directly through acquiring permanent 
        housing;
            ``(7) supportive housing activities include the provision 
        of permanent housing or transitional housing and appropriate 
        supportive services in an environment that can meet the short-
        term or long-term needs of persons experiencing homelessness as 
        they reintegrate into mainstream society;
            ``(8) homeless housing and supportive services programs 
        within a community are most effective when they are developed 
        and operated as part of an inclusive, collaborative, locally 
        driven homeless planning process that involves as 
        decisionmakers persons experiencing homelessness, advocates for 
        persons experiencing homelessness, service organizations, 
        government officials, business persons, neighborhood advocates, 
        and other community members;
            ``(9) homelessness should be treated as a symptom of many 
        neighborhood and community problems, whose remedies require a 
        comprehensive approach integrating all available resources;
            ``(10) there are many private sector entities, particularly 
        nonprofit organizations, that have successfully operated 
        outcome-effective homeless programs;
            ``(11) Federal homeless assistance should supplement other 
        public and private funding provided by communities for housing 
        and supportive services for low-income households;
            ``(12) the Federal Government has a responsibility to 
        establish partnerships with State and local governments and 
        private sector entities to address comprehensively the problems 
        of homelessness; and
            ``(13) while the results of Federal programs targeted for 
        persons experiencing homelessness have been positive, the 
        multitude of such programs calls for unification and 
        simplification of the process by which nonprofit organizations, 
        State and local governments, and the private sector apply for 
        funds.
    ``(b) Purpose.--It is the purpose of this Act--
            ``(1) to provide funds for programs to assist individuals 
        and families in the transition from homelessness, and to 
        prevent homelessness for those vulnerable to homelessness;
            ``(2) to consolidate the separate homeless assistance 
        programs carried out under title IV (consisting of the 
        supportive housing program and related innovative programs, the 
        safe havens program, the section 8 assistance program for 
        single-room occupancy dwellings, the shelter plus care program, 
        and the rural homeless housing assistance program) into a 
        single program with specific eligible activities;
            ``(3) to allow flexibility and creativity in rethinking 
        solutions to homelessness, including alternative housing 
        strategies, outcome-effective service delivery, and the 
        involvement of persons experiencing homelessness in 
        decisionmaking regarding opportunities for their long-term 
        stability, growth, and well-being;
            ``(4) to ensure that multiple Federal agencies are involved 
        in the provision of housing, health care, human services, 
        employment, and education assistance to persons experiencing 
        homelessness, as appropriate for the missions of the agencies, 
        through the funding provided for implementation of programs 
        carried out under this Act and other programs targeted for 
        persons experiencing homelessness, and mainstream funding, and 
        to promote coordination among those Federal agencies, including 
        providing funding for an Interagency Council on Homelessness to 
        advance such coordination;
            ``(5) to create a unified and performance-based process for 
        allocating and administering funds under title IV;
            ``(6) to encourage comprehensive, collaborative local 
        planning of housing and services programs for persons 
        experiencing homelessness; and
            ``(7) to focus the resources and efforts of the public and 
        private sectors on ending and preventing homelessness.''.

SEC. 3. INTERAGENCY COUNCIL ON HOMELESSNESS.

    Title II of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
11311 et seq.) is amended--
            (1) in section 202 (42 U.S.C. 11312)--
                    (A) in subsection (a)--
                            (i) by striking ``(16)'' and inserting 
                        ``(17)''; and
                            (ii) by inserting after paragraph (15) the 
                        following:
            ``(16) The Commissioner of Social Security, or the designee 
        of the Commissioner.''; and
                    (B) by adding at the end the following:
    ``(e) Administration.--The Assistant to the President for Domestic 
Policy within the Executive Office of the President shall oversee the 
functioning of the Interagency Council on Homelessness to ensure 
Federal interagency collaboration and program coordination to focus on 
preventing and ending homelessness, to increase access to mainstream 
programs by persons experiencing homelessness, to eliminate the 
barriers to participation in those programs, as identified in a report 
by the General Accounting Office entitled `Homelessness: Barriers to 
Using Mainstream Programs', issued July 6, 2000, and to implement a 
Federal plan to prevent and end homelessness.'';
            (2) in section 203(a) (42 U.S.C. 11313(a))--
                    (A) by redesignating paragraphs (6) and (7) as 
                paragraphs (7) and (8), respectively; and
                    (B) by inserting after paragraph (5) the following:
            ``(6) develop mechanisms to ensure access by persons 
        experiencing homelessness to all Federal programs for which the 
        persons are eligible, and to verify collaboration among 
        recipients and project sponsors within a community that receive 
        Federal funding under programs targeted for persons 
        experiencing homelessness, and other programs for which persons 
        experiencing homelessness are eligible, including programs 
        identified by the General Accounting Office in the February 
        1999 report entitled `Homelessness: Coordination and Evaluation 
        of Programs Are Essential'''; and
            (3) by striking section 208 (42 U.S.C. 11318) and inserting 
        the following:

``SEC. 208. AUTHORIZATION OF APPROPRIATIONS.

     ``Of any amounts made available for any fiscal year to carry out 
subtitles B and C of title IV, $1,000,000 shall be allocated to the 
Assistant to the President for Domestic Policy within the Executive 
Office of the President to carry out this title.''.

SEC. 4. HOUSING ASSISTANCE GENERAL PROVISIONS.

    Subtitle A of title IV of the McKinney-Vento Homeless Assistance 
Act (42 U.S.C. 11361 et seq.) is amended--
            (1) by striking the subtitle heading and inserting the 
        following:

                  ``Subtitle A--General Provisions'';

            (2)(A) by redesignating section 401 (42 U.S.C. 11361) as 
        section 403; and
            (B) by redesignating section 402 (42 U.S.C. 11362) as 
        section 406;
            (3) by inserting before section 403 (as redesignated in 
        paragraph (2)) the following:

``SEC. 401. DEFINITIONS.

    ``In this title:
            ``(1) Board.--The term `Board' means a Community Homeless 
        Assistance Planning Board that is a representative planning 
        body established in accordance with section 402.
            ``(2) Collaborative applicant.--The term `collaborative 
        applicant' means--
                    ``(A) an entity, which may or may not be a Board, 
                that serves as the applicant for project sponsors who 
                jointly submit a single application for a grant under 
                subtitle C with the approval of, and in accordance with 
                the collaborative process established by, a Board, and, 
                if awarded such grant, receives such grant directly 
                from the Secretary; or
                    ``(B) an individual project sponsor who is an 
                eligible entity under subtitle C and submits an 
                application for a grant under subtitle C, with the 
                approval of, and in accordance with the collaborative 
                process established by, a Board, and, if awarded such 
                grant, receives such grant directly from the Secretary.
            ``(3) Collaborative application.--The term `collaborative 
        application' means an application for a grant under subtitle C 
        that--
                    ``(A) satisfies section 422 (including containing 
                the information described in subsections (a) and (c) of 
                section 426); and
                    ``(B) is submitted to a Board and then to the 
                Secretary by a collaborative applicant.
            ``(4) Consolidated plan.--The term `Consolidated Plan' 
        means a comprehensive housing affordability strategy and 
        community development plan required in part 91 of title 24, 
        Code of Federal Regulations.
            ``(5) Eligible entity.--The term `eligible entity' means, 
        with respect to a subtitle, a public or private entity eligible 
        to receive directly grant amounts under that subtitle.
            ``(6) Geographic area.--The term `geographic area' means a 
        State, metropolitan city, urban county, town, village, or other 
        nonentitlement area, or a combination or consortia of such, in 
        the United States, as described in section 106 of the Housing 
        and Community Development Act of 1974 (42 U.S.C. 5306).
            ``(7) Homeless individual with a disability.--
                    ``(A) In general.--The term `homeless individual 
                with a disability' means an individual who is homeless, 
                as defined in section 103 and has a disability that--
                            ``(i)(I) is expected to be long-continuing 
                        or of indefinite duration;
                            ``(II) substantially impedes the 
                        individual's ability to live independently;
                            ``(III) could be improved by the provision 
                        of more suitable housing conditions; and
                            ``(IV) is a physical, mental, or emotional 
                        impairment, including an impairment caused by 
                        alcohol or drug abuse;
                            ``(ii) is a developmental disability, as 
                        defined in section 102 of the Developmental 
                        Disabilities Assistance and Bill of Rights Act 
                        of 2000 (42 U.S.C. 15002); or
                            ``(iii) is the disease of acquired 
                        immunodeficiency syndrome or any condition 
                        arising from the etiologic agency for acquired 
                        immunodeficiency syndrome.
                    ``(B) Rule.--Nothing in clause (iii) of 
                subparagraph (A) shall be construed to limit 
                eligibility under clause (i) or (ii) of subparagraph 
                (A).
            ``(8) Independently owned.--The term `independently owned', 
        used with respect to rental assistance, means assistance 
        provided pursuant to a contract that--
                    ``(A) is between--
                            ``(i) the recipient or a project sponsor; 
                        and
                            ``(ii) an independent entity that--
                                    ``(I) is a private organization; 
                                and
                                    ``(II) owns or leases dwelling 
                                units; and
                    ``(B) provides that rental assistance payments 
                shall be made to the independent entity and that 
                eligible persons shall occupy such assisted units.
            ``(9) Low-demand program.--The term `low-demand program' 
        means a program that does not require, but offers, in a non-
        coercive manner--
                    ``(A)(i) health care services, mental health 
                services, and substance abuse treatment services; and
                    ``(ii) other supportive services, which may include 
                medication management, education, counseling, job 
                training, and assistance in obtaining entitlement 
                benefits or in obtaining such supportive services; and
                    ``(B) referrals for services described in 
                subparagraph (A).
            ``(10) Metropolitan city; urban county; nonentitlement 
        area.--The terms `metropolitan city', `urban county', and 
        `nonentitlement area' have the meanings given such terms in 
        section 102(a) of the Housing and Community Development Act of 
        1974 (42 U.S.C. 5302(a)).
            ``(11) New.--The term `new', used with respect to housing, 
        means housing for which no assistance has been provided under 
        this title.
            ``(12) Operating costs.--The term `operating costs' means 
        expenses incurred by a recipient or project sponsor operating--
                    ``(A) transitional housing or permanent housing 
                under this title with respect to--
                            ``(i) the administration, maintenance, 
                        repair, and security of such housing;
                            ``(ii) utilities, fuel, furnishings, and 
                        equipment for such housing; or
                            ``(iii) conducting an assessment under 
                        section 426(c)(2); and
                    ``(B) supportive housing, for homeless individuals 
                with disabilities or homeless families that include 
                such an individual, under this title with respect to--
                            ``(i) the matters described in clauses (i), 
                        (ii), and (iii) of subparagraph (A); and
                            ``(ii) coordination of services as needed 
                        to ensure long-term housing stability.
            ``(13) Outpatient health services.--The term `outpatient 
        health services' means outpatient health care services, mental 
        health services, and outpatient substance abuse treatment 
        services.
            ``(14) Permanent housing.--The term `permanent housing' 
        includes permanent supportive housing.
            ``(15) Permanent housing development activities.--The term 
        `permanent housing development activities' means activities--
                    ``(A) to construct, lease, rehabilitate, or acquire 
                structures to provide permanent housing;
                    ``(B) involving tenant-based, independently owned, 
                and project-based flexible rental assistance for 
                permanent housing;
                    ``(C) described in paragraphs (1) through (4) of 
                section 423(a); or
                    ``(D) involving the capitalization of a dedicated 
                project account from which payments are allocated for 
                rental assistance and operating costs of permanent 
                housing.
            ``(16) Private nonprofit organization.--The term `private 
        nonprofit organization' means an organization--
                    ``(A) no part of the net earnings of which inures 
                to the benefit of any member, founder, contributor, or 
                individual;
                    ``(B) that has a voluntary board;
                    ``(C) that has an accounting system, or has 
                designated a fiscal agent in accordance with 
                requirements established by the Secretary; and
                    ``(D) that practices nondiscrimination in the 
                provision of assistance.
            ``(17) Project.--The term `project', used with respect to 
        activities carried out under subtitle C, means eligible 
        activities described in section 423(a), undertaken pursuant to 
        a specific endeavor, such as serving a particular population or 
        providing a particular resource.
            ``(18) Project-based.--The term `project-based', used with 
        respect to rental assistance, means assistance provided 
        pursuant to a contract that--
                    ``(A) is between--
                            ``(i) the recipient or a project sponsor; 
                        and
                            ``(ii) an owner of a structure that exists 
                        as of the date the contract is entered into; 
                        and
                    ``(B) provides that rental assistance payments 
                shall be made to the owner and that the units in the 
                structure shall be occupied by eligible persons for not 
                less than the term of the contract.
            ``(19) Project sponsor.--The term `project sponsor', used 
        with respect to proposed eligible activities, means the 
        organization directly responsible for carrying out the proposed 
        eligible activities.
            ``(20) Recipient.--Except as used in subtitle B, the term 
        `recipient' means an eligible entity who--
                    ``(A) submits an application for a grant under 
                section 422 that is approved by the Secretary;
                    ``(B) receives the grant directly from the 
                Secretary to support approved projects described in the 
                application; and
                    ``(C)(i) serves as a project sponsor for the 
                projects; or
                    ``(ii) awards the funds to project sponsors to 
                carry out the projects.
            ``(21) Safe haven.--
                    ``(A) In general.--The term `safe haven' means a 
                facility--
                            ``(i) that provides 24-hour residence for 
                        an unspecified duration for persons who, on 
                        entry to the facility, are unwilling or unable 
                        to participate in mental health or substance 
                        abuse treatment programs, or to receive other 
                        supportive services;
                            ``(ii) that provides private or semi-
                        private accommodations;
                            ``(iii) that may provide for the common use 
                        of kitchen facilities, dining rooms, and 
                        bathrooms;
                            ``(iv) that may provide supportive 
                        services, on a drop-in basis, to eligible 
                        persons who are not residents; and
                            ``(v) in which overnight occupancy is 
                        limited to no more than 25 persons.
                    ``(B) Rules.--
                            ``(i) Supplemental security income.--For 
                        purposes of the program carried out under title 
                        XVI of the Social Security Act (42 U.S.C. 1381 
                        et seq.)--
                                    ``(I) no individual living in a 
                                facility described in subparagraph (A) 
                                and authorized under this title shall 
                                be considered to be an inmate of a 
                                public institution (as provided in 
                                section 1611(e)(1)(A) of the Social 
                                Security Act (42 U.S.C. 
                                1382(e)(1)(A))); and
                                    ``(II) no individual living in a 
                                facility described in subparagraph (A) 
                                and authorized under this title shall 
                                have benefits under title XVI of the 
                                Social Security Act reduced or 
                                terminated because of the receipt of 
                                support and maintenance (as provided in 
                                section 1612(a)(2)(A) of the Social 
                                Security Act (42 U.S.C. 
                                1382a(a)(2)(A)), to the extent such 
                                support and maintenance is received as 
                                a result of residence in the facility.
                            ``(ii) Medicaid assistance.--For purposes 
                        of the program carried out under title XIX of 
                        the Social Security Act (42 U.S.C. 1396 et 
                        seq.)--
                                    ``(I) a facility described in 
                                subparagraph (A) and authorized under 
                                this title shall not be considered to 
                                be a hospital, nursing facility, 
                                institution for mental diseases (as 
                                defined in section 1905(i) of the 
                                Social Security Act (42 U.S.C. 
                                1396d(i))), or any other inpatient 
                                facility; and
                                    ``(II) an individual residing in a 
                                facility described in subparagraph (A) 
                                and authorized under this title shall 
                                not be denied eligibility for 
                                assistance under such title because of 
                                residency in the facility.
            ``(22) Secretary.--The term `Secretary' means the Secretary 
        of Housing and Urban Development.
            ``(23) Seriously mentally ill.--The term `seriously 
        mentally ill' means having a severe and persistent mental 
        illness or emotional impairment that seriously limits a 
        person's ability to live independently.
            ``(24) Solo applicant.--The term `solo applicant' means an 
        entity that is an eligible entity, directly submits an 
        application for a grant under subtitle C to the Secretary, and, 
        if awarded such grant, receives such grant directly from the 
        Secretary.
            ``(25) State.--Except as used in subtitle B, the term 
        `State' means each of the several States, the District of 
        Columbia, the Commonwealth of Puerto Rico, the United States 
        Virgin Islands, Guam, American Samoa, and the Commonwealth of 
        the Northern Mariana Islands.
            ``(26) Supportive services.--The term `supportive services' 
        means the services described in section 425.
            ``(27) Tenant-based.--The term `tenant-based', used with 
        respect to rental assistance, means assistance that allows an 
        eligible person to select a housing unit in which such person 
        will live using rental assistance provided under subtitle C, 
        except that if necessary to assure that the provision of 
        supportive services to a person participating in a program is 
        feasible, a recipient or project sponsor may require that the 
        person live--
                    ``(A) in a particular structure or unit for not 
                more than the first year of the participation; and
                    ``(B) within a particular geographic area for the 
                full period of the participation, or the period 
                remaining after the period referred to in subparagraph 
                (A).
            ``(28) Transitional housing.--The term `transitional 
        housing' has the meaning given the term in section 424(b), and 
        includes transitional supportive housing.

``SEC. 402. COMMUNITY HOMELESS ASSISTANCE PLANNING BOARDS.

    ``(a) Boards.--A Board shall be established for a geographic area 
by the relevant parties in that geographic area, or designated for a 
geographic area by the Secretary in accordance with subsection (c), to 
lead a collaborative planning process to design, execute, and evaluate 
programs, policies, and practices to prevent and end homelessness.
    ``(b) Membership.--A Board established under subsection (a) shall 
be composed of persons--
            ``(1) from a particular geographic area;
            ``(2) not less than 51 percent of whom are--
                    ``(A) persons who are experiencing or have 
                experienced homelessness (with not fewer than 2 persons 
                being individuals who are experiencing or have 
                experienced homelessness);
                    ``(B) persons who act as advocates for the diverse 
                subpopulations of persons experiencing homelessness; 
                and
                    ``(C) persons or representatives of organizations 
                who provide assistance to the variety of individuals 
                and families experiencing homelessness; and
            ``(3) the remainder of whom are selected from among--
                    ``(A) government officials, particularly those 
                officials responsible for administering funding under 
                programs targeted for persons experiencing 
                homelessness, and other programs for which persons 
                experiencing homelessness are eligible, including 
                programs identified by the General Accounting Office in 
                the February 1999 report entitled `Homelessness: 
                Coordination and Evaluation of Programs Are Essential';
                    ``(B) members of the business community; and
                    ``(C) members of neighborhood advocacy 
                organizations.
    ``(c) Existing Planning Bodies.--The Secretary may designate an 
entity to be a Board if such entity has, prior to the date of enactment 
of the Community Partnership to End Homelessness Act of 2002, engaged 
in coordinated, comprehensive local homeless housing and services 
planning and applied for Federal funding to provide homeless 
assistance.
    ``(d) Remedial Action.--If the Secretary finds that a Board for a 
geographic area does not meet the requirements of this section, the 
Secretary may take remedial action to ensure fair distribution of grant 
amounts under subtitle C to eligible entities within that area. Such 
measures may include designating another body as a Board or permitting 
eligible entities to apply directly for grants.
    ``(e) Construction.--Nothing in this section shall be construed to 
displace conflict of interest or government fair practices laws, or 
their equivalent, that govern applicants for grant amounts under 
subtitles B and C.
    ``(f) Duties.--A Board established under subsection (a) shall--
            ``(1)(A) design a collaborative process, established 
        jointly and complied with by its members, for evaluating, 
        reviewing, and prioritizing projects and applications submitted 
        by eligible entities under subtitles B and C, in such a manner 
        as to ensure that the entities further the goal of preventing 
        and ending homelessness in the geographic area involved;
            ``(B)(i)(I) review relevant policies and practices (in 
        place and planned) of public and private entities in the 
        geographic area served by the Board to determine if the 
        policies and practices further or impede the goal described in 
        subparagraph (A);
            ``(II) in conducting the review, give priority to the 
        review of--
                    ``(aa) the discharge planning and service 
                termination policies and practices of publicly funded 
facilities or institutions (such as health care or treatment facilities 
or institutions, foster care or youth facilities, or correctional 
institutions), and entities carrying out publicly funded programs and 
systems of care (such as health care or treatment programs, State 
programs funded under part A of title IV of the Social Security Act (42 
U.S.C. 601 et seq.) (relating to Temporary Assistance for Needy 
Families), foster care or youth programs, or correctional programs), to 
ensure that such a discharge or termination does not result in 
immediate homelessness for the persons involved;
                    ``(bb) the access and utilization policies and 
                practices of the entities carrying out mainstream 
                programs, as identified in the 2 reports described in 
                section 102(a)(5)(B), to ensure that persons 
                experiencing homelessness are able to access and 
                utilize the programs; and
                    ``(cc) local policies and practices relating to 
                zoning and enforcement of local statutes, to ensure 
                that the policies and practices allow reasonable 
                inclusion and distribution in the geographic area of 
                special needs populations and families with children; 
                and
            ``(III) in conducting the review, determine the 
        modifications and corrective actions that need to be taken, and 
        by whom, to ensure that the relevant policies and practices do 
        not stimulate, or prolong, homelessness in the geographic area;
            ``(ii) inform the entities of the determinations described 
        in clause (i); and
            ``(iii) once every 3 years, prepare for inclusion in any 
        application reviewed by the Board and submitted to the 
        Secretary under section 422, the determinations described in 
        clause (i), in the form of an exhibit entitled `Assessment of 
        Relevant Policies and Practices, and Needed Corrective Actions 
        to End and Prevent Homelessness'; and
            ``(C) if the Board designs and carries out the projects, 
        design and carry out the projects in such a manner as to 
        further the goal described in subparagraph (A);
            ``(2) require, consistent with the Government Performance 
        and Results Act of 1993 and amendments made by that Act, that 
        recipients and project sponsors who are funded by grants 
        received under such subtitles implement and maintain an 
        outcome-based evaluation of their projects that measures 
        effective and timely delivery of housing or services and 
        whether provision of such housing or services results in 
        preventing or ending homelessness for the persons that such 
        recipients and project sponsors serve;
            ``(3) require, consistent with the Government Performance 
        and Results Act of 1993 and amendments made by that Act, 
        outcome-based evaluation of the Board's homeless assistance 
        planning process to measure the Board's performance in 
        preventing or ending the homelessness of persons in the Board's 
        geographic area; and
            ``(4) participate in the Consolidated Plan for the 
        geographic area served by the Board.'';
            (4) by inserting after section 403 (as redesignated in 
        paragraph (2)) the following:

``SEC. 404. TECHNICAL ASSISTANCE.

    ``(a) In General.--The Secretary shall provide technical assistance 
to--
            ``(1) States, metropolitan cities, urban counties, and 
        counties that are not urban counties, that have not applied 
        for, or have failed to receive, funding under this title, in 
        order to implement effective planning processes for preventing 
        and ending homelessness and to improve their capacity to 
        prepare collaborative applications; and
            ``(2) Boards or their predecessor homeless planning bodies 
        in States, metropolitan cities, urban counties, and counties 
        that are not urban counties, that have not applied for, or have 
        failed to receive, funding under this title, in order to 
        improve their capacity to prepare collaborative applications.
    ``(b) Reservation.--The Secretary shall reserve not more than 1 
percent (and not more than $12,000,000) of the funds made available for 
any fiscal year for carrying out subtitles B and C, to provide 
technical assistance under subsection (a) and to develop and maintain a 
client-level management information system to assist in directing 
resources for the programs carried out under those subtitles to the 
activities that can most effectively prevent and end homelessness.

``SEC. 405. PERFORMANCE REPORTS.

    ``(a) In General.--A Board shall submit to the Secretary an annual 
performance report regarding the activities carried out with grant 
amounts received under subtitles B and C in the geographic area served 
by the Board, at such time and in such manner as the Secretary 
determines to be reasonable.
    ``(b) Content.--The performance report described in subsection (a) 
shall--
            ``(1) describe the number of persons provided homelessness 
        prevention assistance (including the number of such persons who 
        were discharged or whose services were terminated as described 
        in section 422(d)(2)(B)(ii)(I)(bb)), and the number of 
        individuals and families experiencing homelessness who were 
        provided shelter, housing, or supportive services, with the 
        grant amounts awarded in the fiscal year prior to the fiscal 
        year in which the report was submitted, including measurements 
        of the number of persons experiencing homelessness who--
                    ``(A) entered permanent housing, and the length of 
                time such persons resided in that housing, if known;
                    ``(B) entered transitional housing, and the length 
                of time such persons resided in that housing, if known;
                    ``(C) obtained or retained jobs;
                    ``(D) increased their income, including increasing 
                income through the receipt of government benefits;
                    ``(E) received mental health or substance abuse 
                treatment in an institutional setting and now receive 
                that assistance in a less restrictive, community-based 
                setting;
                    ``(F) received additional education, vocational or 
                job training, or employment assistance services; and
                    ``(G) received additional physical, mental, or 
                emotional health care;
            ``(2) estimate the number of persons experiencing 
        homelessness in the geographic area served by the Board who are 
        eligible for, but did not receive, services, housing, or other 
        assistance through the programs funded under subtitles B and C 
        in the prior fiscal year;
            ``(3) indicate the accomplishments achieved within the 
        geographic area that involved the use of the grant amounts 
        awarded in the prior fiscal year, regarding efforts to 
        coordinate services and programs within the geographic area;
            ``(4) indicate the accomplishments achieved within the 
        geographic area to--
                    ``(A) increase access by persons experiencing 
                homelessness to programs that are not targeted for 
                persons experiencing homelessness (but for which 
                persons experiencing homelessness are eligible), 
                including mainstream programs, as identified in the 2 
                reports described in section 102(a)(5)(B); and
                    ``(B) prevent the homelessness of persons 
                discharged from publicly funded institutions or systems 
                of care (such as health care facilities, foster care or 
                other youth facilities or systems of care, institutions 
                or systems of care relating to the temporary assistance 
                to needy families program established under part A of 
                title IV of the Social Security Act (42 U.S.C. 601 et 
                seq.), and corrections programs and institutions);
            ``(5) describe how the Board and other involved public and 
        private entities within the geographic area will incorporate 
        their experiences in the prior fiscal year into the programs 
        and process that the Board and entities will implement during 
        the next fiscal year, including describing specific strategies 
        to improve their performance outcomes;
            ``(6) assess the consistency and coordination between the 
        programs funded under subtitles B and C in the prior fiscal 
        year and the Consolidated Plan;
            ``(7) include updates to the exhibits described in section 
        402(f)(1)(B)(iii) that were included in applications--
                    ``(A) submitted under section 422 by applicants 
                from the geographic area; and
                    ``(B) approved by the Secretary; and
            ``(8) provide such other information as the Secretary finds 
        relevant to assessing performance, including performance on 
        success measures that are risk-adjusted to factors related to 
        the circumstances of the population served.
    ``(c) Waiver.--The Secretary may grant a waiver to any Board that 
is unable to provide information required by subsection (b). Such Board 
shall submit a plan to provide such information within a reasonable 
period of time.''; and
            (5) by inserting after section 406 (as redesignated in 
        paragraph (2)) the following:

``SEC. 407. AUTHORIZATION OF APPROPRIATIONS.

    ``There are authorized to be appropriated to carry out title II and 
this title $1,600,000,000 for fiscal year 2003 and such sums as may be 
necessary for fiscal years 2004, 2005, 2006, and 2007.''.

SEC. 5. EMERGENCY SHELTER GRANTS PROGRAM.

    Subtitle B of title IV of the McKinney-Vento Homeless Assistance 
Act (42 U.S.C. 11371 et seq.) is amended--
            (1) by striking section 412 (42 U.S.C. 11372) and inserting 
        the following:

``SEC. 412. GRANT ASSISTANCE.

    ``The Secretary shall make grants to States and local governments 
(and to private nonprofit organizations providing assistance to persons 
experiencing homelessness, in the case of grants made with reallocated 
amounts) for the purpose of carrying out activities described in 
section 414.

``SEC. 412A. AMOUNT AND ALLOCATION OF ASSISTANCE.

    ``(a) In General.--Of the amount made available to carry out this 
subtitle and subtitle C for a fiscal year, the Secretary shall allocate 
nationally not more than 15 percent of such amount for activities 
described in section 414.
    ``(b) Allocation.--An entity that receives a grant under section 
412, and serves an area that includes 1 or more geographic areas (or 
portions of such areas) served by Boards that submit applications under 
subtitle C, shall allocate the funds made available through the grant 
to carry out activities described in section 414, in consultation with 
the Boards.'';
            (2) in section 413(b) (42 U.S.C. 11373(b)), by striking 
        ``amounts appropriated'' and all that follows through ``for 
        any'' and inserting ``amounts appropriated under section 407 
        and made available to carry out this subtitle for any'';
            (3) by striking section 414 (42 U.S.C. 11374) and inserting 
        the following:

``SEC. 414. ELIGIBLE ACTIVITIES.

    ``Assistance provided under section 412 may be used for the 
following activities:
            ``(1) The renovation, major rehabilitation, or conversion 
        of buildings to be used as emergency shelters.
            ``(2) The provision of essential services, including 
        services concerned with employment, health, or education, 
        family support services for homeless youth, alcohol or drug 
        abuse prevention or treatment, or mental health treatment, if 
        such essential services have not been provided by the local 
        government during any part of the immediately preceding 12-
        month period, or the use of assistance under this subtitle 
        would complement the provision of those essential services.
            ``(3) Maintenance, operation insurance, provision of 
        utilities, and provision of furnishings.''; and
            (4) by repealing sections 417 and 418 (42 U.S.C. 11377, 
        11378).

SEC. 6. HOMELESS ASSISTANCE PROGRAM.

    Subtitle C of title IV of the McKinney-Vento Homeless Assistance 
Act (42 U.S.C. 11381 et seq.) is amended--
            (1) by striking the subtitle heading and inserting the 
        following:

              ``Subtitle C--Homeless Assistance Program'';

            (2) by striking sections 421 through 423 (42 U.S.C. 11381 
        et seq.) and inserting the following:

``SEC. 421. PURPOSES.

    ``The purposes of this subtitle are--
            ``(1) to promote the development of transitional and 
        permanent housing--
                    ``(A) through the creation and operation of new 
                housing stock, and the leasing or operation of housing 
                that is not new housing stock; and
                    ``(B) by promoting the provision of very low-cost 
                housing to persons experiencing homelessness who are 
                unwilling or unable to participate in mental health or 
                substance abuse treatment programs, or to receive other 
                supportive services;
            ``(2) to promote the provision of needed housing-related 
        supportive services to assist persons experiencing homelessness 
        in the transition from homelessness, enabling the persons to 
        live as independently as possible; and
            ``(3) to promote the implementation of activities that can 
        prevent vulnerable individuals and families from becoming 
        homeless.

``SEC. 422. COMMUNITY HOMELESS ASSISTANCE PROGRAM.

    ``(a) Eligible Applicant.--In this section, the term `eligible 
applicant' means a collaborative applicant or solo applicant.
    ``(b) Projects.--The Secretary shall award grants to eligible 
applicants to carry out homeless assistance and prevention projects.
    ``(c) Notification of Funding Availability.--The Secretary shall 
release a Notification of Funding Availability for grants awarded under 
this subtitle for a fiscal year not later than 3 months after the date 
of enactment of the appropriate Act making appropriations for the 
Department of Housing and Urban Development for the fiscal year.
    ``(d) Applications.--
            ``(1) In general.--To receive a grant under subsection (b), 
        an eligible applicant shall submit an application for the grant 
        to a Board in accordance with the collaborative process 
        established by the Board, as described in section 402, and have 
        such application reviewed, approved, and prioritized by such 
        Board, except that a solo applicant may submit such application 
        to the Secretary without participating in such process if the 
        applicant includes information in such application regarding 
        why the applicant has not participated.
            ``(2) Submission to the secretary.--To receive the grant, 
        after receiving approval from the Board for the application, 
        the eligible applicant shall submit an application to the 
        Secretary at such time and in such manner as the Secretary may 
        require, and containing--
                    ``(A) the application submitted to the Board; and
                    ``(B) other information that, in addition to 
                including the information described in subsections (a) 
                and (c) of section 426, shall--
                            ``(i) describe the establishment and 
                        function of the Board, including--
                                    ``(I) the nomination and selection 
                                process for such Board, including the 
                                names and affiliations of all such 
                                Board members;
                                    ``(II) all meetings held by such 
                                Board in preparing the collaborative 
                                application, including identification 
                                of those meetings that were public; and
                                    ``(III) all meetings between Board 
                                representatives, and persons 
                                responsible for administering the 
                                Consolidated Plan;
                            ``(ii) outline the range of housing and 
                        service programs available to persons 
                        experiencing homelessness or imminently at risk 
                        of experiencing homelessness and describe the 
                        unmet needs that remain in the geographic area 
                        for which the collaborative applicant seeks 
                        funding regarding--
                                    ``(I) prevention activities, 
                                including providing assistance in--
                                            ``(aa) making mortgage, 
                                        rent, or utility payments; or
                                            ``(bb) accessing permanent 
                                        housing and transitional 
                                        housing for individuals (and 
                                        families that include the 
                                        individuals) who are being 
                                        discharged from a publicly 
                                        funded facility, program, or 
                                        system of care, or whose 
                                        services (from such a facility, 
                                        program, or system of care) are 
                                        being terminated;
                                    ``(II) outreach activities to 
                                assess the needs and conditions of 
                                persons experiencing homelessness;
                                    ``(III) emergency shelters, 
                                including the supportive and referral 
                                services the shelters provide;
                                    ``(IV) transitional housing with, 
                                as needed, appropriate supportive 
                                services to help persons experiencing 
                                homelessness who are not yet able or 
                                prepared to make the transition to 
                                permanent housing and independent 
                                living;
                                    ``(V) permanent housing to help 
                                meet the long-term needs of individuals 
                                and families experiencing homelessness; 
                                and
                                    ``(VI) needed supportive services;
                            ``(iii) prioritize the projects for which 
                        the collaborative applicant seeks funding 
                        according to the unmet needs in the fiscal year 
                        in which the applicant submits the application 
                        as described in clause (ii);
                            ``(iv) identify funds from private and 
                        public sources, other than funds received under 
                        subtitles B and C, that the State, units of 
                        general local government, recipients, project 
                        sponsors, and others will use for homelessness 
                        prevention, emergency shelter, supportive 
                        services, transitional housing, and permanent 
                        housing, that will be integrated with the 
                        assistance provided under subtitles B and C;
                            ``(v) identify funds provided by the State 
                        and units of general local government under 
                        programs targeted for persons experiencing 
                        homelessness, and other programs for which 
                        persons experiencing homelessness are eligible, 
                        including programs identified by the General 
                        Accounting Office in the February 1999 report 
                        entitled `Homelessness: Coordination and 
                        Evaluation of Programs Are Essential';
                            ``(vi) explain--
                                    ``(I) how the collaborative 
                                applicant will meet the housing and 
                                service needs of individuals and 
                                families experiencing homelessness in 
                                the applicant's community; and
                                    ``(II) the strategy of the State, 
                                units of general local government, and 
                                private entities in the geographic area 
                                over the next 5 years to prevent 
and end homelessness, including, as part of that strategy, a work plan 
for the applicable fiscal years;
                            ``(vii) report on the outcome-based 
                        performance of the homeless programs within the 
                        geographic area served by the collaborative 
                        applicant that were funded under this title in 
                        the fiscal year prior to the fiscal year in 
                        which the application is submitted;
                            ``(viii) include any relevant required 
                        agreements under subtitle C;
                            ``(ix) contain a certification of 
                        consistency with the Consolidated Plan pursuant 
                        to section 403; and
                            ``(x)(I) in the case of a collaborative 
                        applicant, include an exhibit described in 
                        section 402(f)(1)(B)(iii) and prepared by the 
                        Board in accordance with that section; or
                            ``(II) in the case of a solo applicant, 
                        include an exhibit described in section 
                        402(f)(1)(B)(iii) and prepared by the 
                        applicant.
            ``(3) Announcement of awards.--The Secretary shall 
        announce, not later than 5 months after the last date for the 
        submission of applications described in this subsection for a 
        fiscal year, the grants awarded under subsection (b) for that 
        fiscal year.
            ``(4) Obligation, distribution, and utilization of funds.--
                    ``(A) Requirements for obligation.--
                            ``(i) In general.--Not later than 9 months 
                        after the announcement referred to in paragraph 
                        (3), each recipient or project sponsor seeking 
                        the obligation of funds for a grant announced 
                        under paragraph (3) shall meet all requirements 
                        for the obligation of those funds, including 
                        site control, matching funds, and environmental 
                        review requirements, except as provided in 
                        clause (ii).
                            ``(ii) Acquisition, rehabilitation, or 
                        construction.--Not later than 15 months after 
                        the announcement referred to in paragraph (3), 
                        each recipient or project sponsor seeking the 
                        obligation of funds for acquisition of housing, 
                        rehabilitation of housing, or construction of 
                        new housing for a grant announced under 
                        paragraph (3) shall meet all requirements for 
                        the obligation of those funds, including site 
                        control, matching funds, and environmental 
                        review requirements.
                            ``(iii) Extensions.--At the discretion of 
                        the Secretary, and in compelling circumstances, 
                        the Secretary may extend the date by which a 
                        recipient or project sponsor shall meet the 
                        requirements described in clause (i) if the 
                        Secretary determines that compliance with the 
                        requirements was delayed due to factors beyond 
                        the reasonable control of the recipient or 
                        project sponsor. Such factors may include 
                        difficulties in obtaining site control for a 
                        proposed project, completing the process of 
                        obtaining secure financing for the project, or 
                        completing the technical submission 
                        requirements for the project.
                    ``(B) Obligation.--Not later than 45 days after a 
                recipient or project sponsor meets the requirements 
                described in subparagraph (A)(i), the Secretary shall 
                obligate the funds for the grant involved.
                    ``(C) Distribution.--A recipient that receives 
                funds through such a grant--
                            ``(i) shall distribute the funds to project 
                        sponsors (in advance of expenditures by the 
                        project sponsors); and
                            ``(ii) shall distribute the appropriate 
                        portion of the funds to a project sponsor not 
                        later than 21 days after receiving a request 
                        for such distribution from the project sponsor.
    ``(e) Selection Criteria.--In determining whether to award a grant 
to an applicant under subsection (b), the Secretary shall consider, in 
addition to criteria described in section 426(b)--
            ``(1) the inclusiveness of the Board involved and the 
        process the Board administered, if applicable;
            ``(2) the comprehensiveness and coordination of the 
        homelessness prevention, housing, and services programs 
        (including discharge planning and service termination 
        protocols) within the geographic area served by the Board;
            ``(3) the extent to which prioritized programs meet unmet 
        needs;
            ``(4) the capacity of the geographic area to leverage 
        funding from other public and private sources;
            ``(5) the long-term strategy of the applicable States and 
        units of general local government to combat, prevent, and end 
        homelessness;
            ``(6) the performance of the homelessness prevention, 
        housing, and services programs funded in the fiscal year prior 
        to the date of submission of the application;
            ``(7) the need for services in the geographic area;
            ``(8) the plan by which--
                    ``(A) access to appropriate permanent housing will 
                be secured if the proposed project does not include 
                permanent housing; and
                    ``(B) access to outcome-effective supportive 
                services will be secured for residents or consumers 
                involved in the project who are willing to use the 
                services;
            ``(9) the evaluation plan for evaluations of the project, 
        which--
                    ``(A) will use periodically collected information 
                and analysis to determine whether the project has 
                resulted in enhanced stability and well-being of the 
residents or consumers served by the project;
                    ``(B) will include evaluations obtained directly 
                from the individuals or families served by the project; 
                and
                    ``(C) will be submitted by the recipient for the 
                grant to the Board for review and use in assessments, 
                conducted by the Board consistent with the Board's duty 
                to ensure effective outcomes that contribute to the 
                goal of preventing and ending homelessness in the 
                geographic area served by the Board; and
            ``(10) any other criteria the Secretary determines to be 
        reasonably appropriate.
    ``(f) Notification of Pro Rata Estimated Grant Amounts.--
            ``(1) Notice.--The Secretary shall inform each Board, at a 
        time concurrent with the release of the Notice of Funding 
        Availability for the grants, of the pro rata estimated grant 
        amount under this subtitle for the geographic area represented 
        by the Board.
            ``(2) Amount.--
                    ``(A) Basis.--Such estimated grant amount shall be 
                based on a percentage of the total funds available, or 
                estimated to be available, to carry out this subtitle 
                for any fiscal year that is equal to the percentage of 
                the total amount available for section 106 of the 
                Housing and Community Development Act of 1974 (42 
                U.S.C. 5306) for the prior fiscal year that--
                            ``(i) was allocated to all metropolitan 
                        cities and urban counties within the geographic 
                        area represented by the Board; or
                            ``(ii) would have been distributed to all 
                        counties within such geographic area that are 
                        not urban counties, if the 30 percent portion 
                        of the allocation to the State involved (as 
                        described in subsection (d)(1) of that section 
                        106) for that year had been distributed among 
                        the counties that are not urban counties in the 
                        State in accordance with the formula specified 
                        in that subsection (with references in that 
                        subsection to nonentitlement areas considered 
                        to be references to those counties).
                    ``(B) Rule.--In computing the estimated grant 
                amount, the Secretary shall adjust the estimated grant 
                amount determined pursuant to subparagraph (A) to 
                ensure that--
                            ``(i) 75 percent of the total funds 
                        available, or estimated to be available, to 
                        carry out this subtitle for any fiscal year are 
                        allocated to the metropolitan cities and urban 
                        counties that received a direct allocation of 
                        funds under section 413 for the prior fiscal 
                        year; and
                            ``(ii) 25 percent of the total funds 
                        available, or estimated to be available, to 
                        carry out this subtitle for any fiscal year are 
                        allocated--
                                    ``(I) to the metropolitan cities 
                                and urban counties that did not receive 
                                a direct allocation of funds under 
                                section 413 for the prior fiscal year; 
                                and
                                    ``(II) to counties that are not 
                                urban counties.
                    ``(C) Combinations or consortia.--For Boards that 
                represent a combination or consortium of cities or 
                counties, the estimated grant amount shall be the sum 
                of the estimated grant amounts for the cities or 
                counties represented by the Board.
    ``(g) Appeals.--
            ``(1) In general.--Not later than 3 months after the date 
        of enactment of the Community Partnership to End Homelessness 
        Act of 2002, the Secretary shall establish a timely appeal 
        procedure for grant amounts awarded or denied under this 
        subtitle pursuant to a collaborative application or solo 
        application for funding.
            ``(2) Process.--The Secretary shall ensure that the 
        procedure permits appeals submitted by Boards, entities 
        carrying out homeless housing and services projects (including 
        emergency shelters and homelessness prevention programs), 
        homeless planning bodies not designated by the Secretary as 
        Boards, and all other applicants under this subtitle.
    ``(h) Solo Applicants.--A solo applicant may submit an application 
to the Secretary for a grant under subsection (b) and be awarded such 
grant on the same basis as such grants are awarded to other applicants 
based on the criteria described in subsection (e). The Secretary may 
award such grants directly to such applicants in a manner determined to 
be appropriate by the Secretary.

``SEC. 423. ELIGIBLE ACTIVITIES.

    ``(a) In General.--The Secretary may award grants to qualified 
applicants under section 422 to carry out homeless assistance and 
prevention projects that consist of 1 or more of the following eligible 
activities:
            ``(1) Construction of new housing units to provide 
        transitional or permanent housing.
            ``(2) Acquisition or rehabilitation of a structure to 
        provide transitional or permanent housing, other than emergency 
        shelter, or to provide supportive services.
            ``(3) Leasing of property, or portions of property, not 
        owned by the recipient or project sponsor involved, for use in 
        providing transitional or permanent housing, or providing 
        supportive services.
            ``(4) Provision of rental assistance to provide 
        transitional or permanent housing to eligible persons. The 
        rental assistance may include tenant-based, project-based, or 
        independently owned rental assistance.
            ``(5) Payment of operating costs for housing units assisted 
        under this subtitle.
            ``(6) Supportive services, except that beginning 3 years 
        after the date of enactment of the Community Partnership to End 
        Homelessness Act of 2002, for both new and renewal projects, 
        the only allowable supportive services will be case management, 
        life skills training, outreach, housing counseling, and other 
services determined by the Secretary (either at the Secretary's 
initiative or on the basis of adequate justification by an applicant) 
to be directly relevant to allowing persons experiencing homelessness 
to access and retain housing.
            ``(7) Homeless management information services.
            ``(8) Monitoring and evaluation activities related to--
                    ``(A) measuring the outcomes of a Board's homeless 
                assistance planning process for preventing and ending 
                homelessness; and
                    ``(B)(i) the effective and timely implementation of 
                specific projects funded under this subtitle, relative 
                to projected outcomes; and
                    ``(ii) in the case of a housing project funded 
                under this subtitle, compliance with appropriate 
                standards of housing quality and habitability as 
                determined by the Secretary.
            ``(9) Prevention activities, including--
                    ``(A) providing financial assistance to individuals 
                or families who have received eviction notices, 
                foreclosure notices, or notices of termination of 
                utility services if, in the case of such an individual 
                or family--
                            ``(i) the inability of the individual or 
                        family to make the required payments is due to 
                        a sudden reduction in income;
                            ``(ii) the assistance is necessary to avoid 
                        the eviction, foreclosure, or termination of 
                        services; and
                            ``(iii) there is a reasonable prospect that 
                        the individual or family will be able to resume 
                        the payments within a reasonable period of 
                        time; and
                    ``(B) carrying out relocation activities (including 
                providing security or utility deposits, rental 
                assistance for a final month at a location, assistance 
                with moving costs, or rental assistance for not more 
                than 6 months) for moving into transitional or 
                permanent housing, individuals, and families that 
                include such individuals--
                            ``(i) who lack housing;
                            ``(ii) who are being discharged from a 
                        publicly funded acute care or long-term care 
                        facility, program, or system of care, or whose 
                        services (from such a facility, program, or 
                        system of care) are being terminated; and
                            ``(iii) who have plans, developed 
                        collaboratively by the public entities involved 
                        and the individuals and families, for securing 
                        or maintaining housing after any funding 
                        provided under this subtitle is utilized.
    ``(b) Eligibility for Funds for Prevention Activities.--To be 
eligible to receive grant funds under section 422 to carry out the 
prevention activities described in subsection (a)(9), an applicant 
shall submit an application to the Secretary under section 422 that 
shall include a certification in which--
            ``(1) the relevant public entities in the geographic area 
        involved certify compliance with subsection (c); and
            ``(2) the publicly funded institutions, facilities, and 
        systems of care in the geographic area certify that the 
        institutions, facilities, and systems of care will take, and 
        fund directly, all reasonable measures to ensure that the 
        institutions, facilities, and systems of care do not discharge 
        individuals into homelessness.
    ``(c) Supplement, Not Supplant.--Funds appropriated under section 
407 and made available for prevention activities described in 
subsection (a)(9) shall be used to supplement and not supplant other 
Federal, State, and local public funds used for homelessness 
prevention.
    ``(d) Use Restrictions.--
            ``(1) Acquisition, rehabilitation, and new construction.--A 
        project that consists of activities described in paragraph (1) 
        or (2) of subsection (a) shall be operated for the purpose 
        specified in the application submitted for the project under 
        section 422 for not less than 20 years.
            ``(2) Other activities.--A project that consists of 
        activities described in any of paragraphs (3) through (9) of 
        subsection (a) shall be operated for the purpose specified in 
        the application submitted for the project under section 422 for 
        the duration of the grant period involved.
            ``(3) Conversion.--If the recipient or project sponsor 
        carrying out a project that provides transitional or permanent 
        housing submits a request to the Secretary to carry out instead 
        a project for the direct benefit of low-income persons, and the 
        Secretary determines that the initial project is no longer 
        needed to provide transitional or permanent housing, the 
        Secretary may approve the project described in the request and 
        authorize the recipient or project sponsor to carry out that 
        project.
    ``(e) Incentives To Create New Permanent Housing Stock.--
            ``(1) In general.--In making grants to eligible applicants 
        under section 422, the Secretary shall make awards that provide 
        incentives described in paragraph (2) to promote the creation 
        of new permanent housing units through the construction, or 
        acquisition and rehabilitation, of permanent housing units, 
        that are owned by a recipient, project sponsor, or other 
        independent entity who entered into a contract with a recipient 
        or project sponsor, for--
                    ``(A)(i) homeless individuals with disabilities who 
                experience chronic homelessness; or
                    ``(ii) homeless families that include a homeless 
                individual with a disability who experiences chronic 
                homelessness; and
                    ``(B) nondisabled homeless families.
            ``(2) Assistance.--
                    ``(A) Individuals with disabilities.--An eligible 
                applicant that receives assistance under section 422 to 
                implement a project that involves the construction, or 
                acquisition and rehabilitation, of new permanent 
                housing units described in paragraph (1), for 
                individuals and families described in paragraph (1)(A), 
                shall also receive, as part of the grant, incentives 
consisting of--
                            ``(i) funds sufficient to provide not more 
                        than 10 years of rental assistance, renewable 
                        in accordance with section 428;
                            ``(ii) in a case in which the project is 
                        the highest priority project described in the 
                        application, a bonus of not more than $250,000 
                        per collaborative or solo application submitted 
                        by the eligible applicant under this subtitle 
                        to carry out activities described in section 
                        423; and
                            ``(iii) the technical assistance needed to 
                        ensure the financial viability and programmatic 
                        effectiveness of the project.
                    ``(B) Nondisabled homeless families.--An eligible 
                applicant that receives assistance under section 422 to 
                implement a project that involves the construction, or 
                acquisition and rehabilitation, of new permanent 
                housing units described in paragraph (1), for 
                nondisabled homeless families, shall also receive 
                incentives consisting of--
                            ``(i) in a case in which the project is the 
                        highest priority project described in the 
                        application, a bonus of not more than $250,000 
                        per collaborative or solo application submitted 
                        by the eligible applicant under this subtitle 
                        to carry out activities described in section 
                        423; and
                            ``(ii) the technical assistance needed to 
                        ensure the financial viability and programmatic 
                        effectiveness of the project.
            ``(3) Eligible applicants.--To be eligible to receive a 
        grant under this subtitle to carry out activities to create new 
        permanent housing stock for individuals and families described 
        in paragraph (1), an applicant shall be a private nonprofit 
        organization or a public housing authority.
            ``(4) Location.--To the extent practicable, a Board that 
        receives a grant under this subtitle to create new permanent 
        housing stock shall ensure that the housing is located in a 
        mixed-income environment.
    ``(f) Repayment of Assistance and Prevention of Undue Benefits.--
            ``(1) Repayment.--If a recipient or project sponsor 
        receives assistance under section 422 to carry out a project 
        that consists of activities described in paragraph (1) or (2) 
        of subsection (a) and the project ceases to provide 
        transitional or permanent housing--
                    ``(A) earlier than 10 years after operation of the 
                project begins, the Secretary shall require the 
                recipient or project sponsor to repay 100 percent of 
                the assistance; or
                    ``(B) not earlier than 10 years, but earlier than 
                20 years, after operation of the project begins, the 
                Secretary shall require the recipient or project 
                sponsor to repay 10 percent of the assistance for each 
                of the years in the 20-year period for which the 
                project fails to provide that housing.
            ``(2) Prevention of undue benefits.--Except as provided in 
        paragraph (3), if any property is used for a project that 
        receives assistance under subsection (a) and consists of 
        activities described in paragraph (1) or (2) of subsection (a), 
        and the sale or other disposition of the property occurs before 
        the expiration of the 20-year period beginning on the date that 
        operation of the project begins, the recipient or project 
        sponsor who received the assistance shall comply with such 
        terms and conditions as the Secretary may prescribe to prevent 
        the recipient or project sponsor from unduly benefiting from 
        such sale or disposition.
            ``(3) Exception.--A recipient or project sponsor shall not 
        be required to make the repayments, and comply with the terms 
        and conditions, required under paragraph (1) or (2) if--
                    ``(A) the sale or disposition of the property used 
                for the project results in the use of the property for 
                the direct benefit of very low-income persons; or
                    ``(B) all of the proceeds of the sale or 
                disposition are used to provide transitional or 
                permanent housing meeting the requirements of this 
                subtitle.'';
            (3) in section 426 (42 U.S.C. 11386)--
                    (A) in subsection (a)--
                            (i) in paragraph (1), by striking 
                        ``Applications'' and all that follows through 
                        ``shall'' and inserting ``Applications for 
                        assistance under section 422 shall'';
                            (ii) in paragraph (2)--
                                    (I) by striking subparagraph (B) 
                                and inserting the following:
                    ``(B) a description of the size and characteristics 
                of the population that would occupy housing units or 
                receive supportive services assisted under this 
                subtitle;''; and
                                    (II) in subparagraph (E), by 
                                striking ``in the case of projects 
                                assisted under this title that do not 
                                receive assistance under such 
                                sections,''; and
                            (iii) in paragraph (3), in the last 
                        sentence, by striking ``recipient'' and 
                        inserting ``recipient or project sponsor'';
                    (B) in subsection (d), in the first sentence, by 
                striking ``recipient'' and inserting ``recipient or 
                project sponsor'';
                    (C) by striking subsection (e);
                    (D) by redesignating subsections (f), (g), and (h), 
                as subsections (e), (f), and (g), respectively;
                    (E) in subsection (f) (as redesignated in 
                subparagraph (D)), in the first sentence, by striking 
                ``recipient'' each place it appears and inserting 
                ``recipient or project sponsor'';
                    (F) by striking subsection (i); and
                    (G) by redesignating subsection (j) as subsection 
                (h);
            (4)(A) by repealing section 429 (42 U.S.C. 11389); and
            (B) by redesignating sections 427 and 428 (42 U.S.C. 11387, 
        11388) as sections 432 and 433, respectively; and
            (5) by inserting after section 426 the following:

``SEC. 427. ALLOCATION AMOUNTS AND INCENTIVES FOR SPECIFIC ELIGIBLE 
              ACTIVITIES.

    ``(a) Purpose.--The Secretary shall promote--
            ``(1) permanent housing development activities for--
                    ``(A) homeless individuals with disabilities and 
                homeless families that include such an individual; and
                    ``(B) nondisabled homeless families; and
            ``(2) prevention activities described in section 423(a)(9).
    ``(b) Definition.--In this section, the term `nondisabled homeless 
family' means a homeless family that does not include a homeless 
individual with a disability.
    ``(c) Annual Portion of Appropriated Amount Available.--
            ``(1) Disabled homeless individuals and families.--
                    ``(A) In general.--From the amount made available 
                to carry out this subtitle for a fiscal year, a portion 
                equal to not less than 30 percent of the sums made 
                available to carry out subtitle B and this subtitle for 
                that fiscal year shall be used for activities to 
                develop new permanent housing, in order to help create 
                affordable permanent housing for homeless individuals 
                with disabilities and homeless families that include 
                such an individual.
                    ``(B) Calculation.--In calculating the portion of 
                the amount described in subparagraph (A) that is used 
                for activities described in subparagraph (A), the 
                Secretary shall not count funds made available to renew 
                contracts for existing projects (in existence as of the 
                date of the renewal) under section 428.
            ``(2) Nondisabled homeless families.--From the amount made 
        available to carry out this subtitle for a fiscal year, a 
        portion equal to not more than 10 percent of the sums described 
        in paragraph (1) may be used for activities to develop new 
        permanent housing for nondisabled homeless families.
            ``(3) Management information services.--From the amount 
        made available to carry out this subtitle for a fiscal year--
                    ``(A) a portion equal to not more than 3 percent 
                (and not more than $30,000,000), shall be used for 
                management information services described in section 
                423(a)(7) for each of the first 3 full fiscal years 
                after the date of enactment of the Community 
                Partnership to End Homelessness Act of 2002; and
                    ``(B) a portion equal to not more than 1.5 percent 
                (and not more than $15,000,000) shall be used for such 
                services for each subsequent fiscal year.
            ``(4) Monitoring and evaluation activities.--From the 
        amount available to carry out this subtitle for a fiscal year, 
        a portion equal to not more than 1.5 percent (and not more than 
        $15,000,000) shall be used for monitoring and evaluation 
        activities described in section 423(a)(8).
            ``(5) Prevention activities.--From the amount made 
        available to carry out this subtitle for a fiscal year, a 
        portion equal to not more than 3 percent of the sums described 
        in paragraph (1) shall be used for prevention activities 
        described in section 423(a)(9).
    ``(d) Funding for Acquisition, Construction, and Rehabilitation of 
Permanent or Transitional Housing.--Nothing in this Act shall be 
construed to establish a limit on the amount of funding that an 
applicant may request under this subtitle for acquisition, 
construction, or rehabilitation activities for the development of 
permanent housing or transitional housing.

``SEC. 428. RENEWAL FUNDING AND TERMS OF ASSISTANCE FOR GRANT AMOUNTS 
              FOR PERMANENT HOUSING FOR HOMELESS INDIVIDUALS WITH 
              DISABILITIES.

    ``(a) In General.--Of the total amount available for use in 
connection with expiring or terminating section 8 subsidy contracts 
awarded under section 8 of the United States Housing Act of 1937 (42 
U.S.C. 1437f), such sums as may be necessary shall be transferred and 
merged into the Homeless Assistance Grants account of the Department of 
Housing and Urban Development.
    ``(b) Renewals.--Such sums shall be available for the renewal of 
contracts for a 1-year term for rental assistance and housing operation 
costs associated with permanent housing projects funded under this 
subtitle, or under subtitle C or F (as in effect on the day before 
the date of enactment of the Community Partnership to End Homelessness 
Act of 2002), for homeless individuals with disabilities and homeless 
families that include such an individual. The Secretary shall determine 
whether to renew a contract for such a permanent housing project on the 
basis of demonstrated need for the project and the compliance of the 
entity carrying out the project with appropriate standards of housing 
quality and habitability as determined by the Secretary.

``SEC. 429. ADMINISTRATIVE EXPENSES.

    ``(a) Administrative Expenses.--Grant amounts awarded under this 
subtitle may be used for administrative expenses, including expenses 
for--
            ``(1) carrying out routine grant administration and 
        monitoring activities;
            ``(2) receipt and disbursal of program funds;
            ``(3) preparation of financial and performance reports, 
        including carrying out management information system functions; 
        and
            ``(4) compliance with grant conditions and audit 
        requirements.
    ``(b) Limitations on Administrative Expenses.--A portion, of not 
more than 6 percent, of grant amounts awarded under this subtitle may 
be used for administrative expenses described in subsection (a), and 
not less than \1/2\ of such portion shall be allocated to nonprofit 
organizations and other project sponsors to fund management information 
system functions, application preparation, and preparation of annual 
performance and other evaluation reports.

``SEC. 430. MATCHING FUNDING.

    ``(a) In General.--An entity who submits an application and 
receives a grant under this subtitle shall make available 
contributions, in cash, in an amount equal to not less than 25 percent 
of the Federal funds provided under the grant, except as provided in 
subsection (b).
    ``(b) Creation of Permanent Housing Stock.--The Secretary shall not 
establish a matching funds requirement relating to activities carried 
out under this subtitle that involve the construction, or acquisition 
and rehabilitation, of a new permanent housing unit if--
            ``(1) the total cost of the construction, or acquisition 
        and rehabilitation, is not more than $500,000;
            ``(2) the unit is owned by a recipient, project sponsor, or 
        other independent entity who entered into a contract with a 
        recipient or project sponsor; and
            ``(3) the unit is for individuals and families described in 
        section 423(e).

``SEC. 431. APPEAL PROCEDURE.

    ``(a) In General.--With respect to funding under this subtitle, if 
certification of consistency with the Consolidated Plan pursuant to 
section 403 is withheld from an applicant who has submitted an 
application for that certification, such applicant may appeal such 
decision to the Secretary.
    ``(b) Procedure.--The Secretary shall establish a procedure to 
process the appeals described in subsection (a).
    ``(c) Determination.--Not later than 45 days after the date of 
receipt of an appeal described in subsection (a), the Secretary shall 
determine if certification was unreasonably withheld. If such 
certification was unreasonably withheld, the Secretary shall review 
such application and determine if such applicant shall receive funding 
under this subtitle.''.

SEC. 7. REPEALS AND CONFORMING AMENDMENTS.

    (a) Repeals.--Subtitles D, E, F, and G of title IV of the McKinney-
Vento Homeless Assistance Act (42 U.S.C. 11391 et seq., 11401 et seq., 
11403 et seq., and 11408 et seq.) are repealed.
    (b) Conforming Amendments.--
            (1) Interagency council on homelessness.--Section 
        2066(b)(3)(F) of title 38, United States Code, section 506(a) 
        of the Public Health Service Act (42 U.S.C. 290aa-5(a)), and 
        sections 201 and 207(1), and subsections (c)(2) and (d)(3) of 
        section 501, of the McKinney-Vento Homeless Assistance Act (42 
        U.S.C. 11311, 11317(1), and 11411) are amended by striking 
        ``Interagency Council on the Homeless'' and inserting 
        ``Interagency Council on Homelessness''.
            (2) Consolidated plan.--Section 403(1) of the McKinney-
        Vento Homeless Assistance Act, as redesignated in section 4(2), 
        is amended--
                    (A) by striking ``current housing affordability 
                strategy'' and inserting ``Consolidated Plan''; and
                    (B) by inserting before the comma the following: 
                ``(referred to in that section as a `comprehensive 
                housing affordability strategy')''.
            (3) Persons experiencing homelessness.--Section 103 of the 
        McKinney-Vento Homeless Assistance Act (42 U.S.C. 11302) is 
        amended by adding at the end the following:
    ``(d) Persons Experiencing Homelessness.--References in this Act to 
homeless individuals (including homeless persons) or homeless groups 
(including the homeless) shall be considered to include, and to refer 
to, individuals experiencing homelessness or groups experiencing 
homelessness, respectively.''.
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