[Congressional Bills 109th Congress]
[From the U.S. Government Publishing Office]
[H.R. 5041 Introduced in House (IH)]







109th CONGRESS
  2d Session
                                H. R. 5041

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


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             March 29, 2006

    Mr. Renzi (by request) introduced the following bill; which was 
            referred to the Committee on Financial Services

_______________________________________________________________________

                                 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 ``Homeless Assistance Consolidation 
Act of 2006''.

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) 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;
            ``(2) there are several housing programs the Federal 
        Government administers to assist persons experiencing 
        homelessness, including programs specifically for individuals 
        with disabling conditions, veterans, and youth;
            ``(3) homeless assistance programs must be evaluated on the 
        basis of their effectiveness in reducing homelessness in their 
        given communities, transitioning individuals and families to 
        permanent housing and stability, and optimizing self-
        sufficiency;
            ``(4) States and units of general local government 
        receiving Federal grant funds must be evaluated on the basis of 
        their effectiveness in implementing plans to appropriately 
        discharge individuals from health care or treatment facilities 
        or institutions, foster care or youth facilities, correctional 
        institutions, or other non-targeted service systems;
            ``(5) an effective plan for reducing homelessness should 
        provide a comprehensive housing system (including permanent 
        housing, transitional housing, homelessness prevention and 
        emergency shelter) that recognizes that, while some individuals 
        and families experiencing homelessness attain economic 
        viability and independence utilizing transitional housing and 
        then permanent housing, others can become self-sufficient by 
        moving directly to permanent housing;
            ``(6) 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 become increasingly self-sufficient;
            ``(7) 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, 
        local or national foundations, and other community members;
            ``(8) faith-based and other community-based organizations 
        play important roles in providing housing and supportive 
        services to persons experiencing homelessness;
            ``(9) homelessness is a symptom of many neighborhood and 
        community problems and the remedies to these problems require a 
        comprehensive local approach integrating all available 
        resources;
            ``(10) 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
            ``(11) while the results of Department of Housing and Urban 
        Development programs targeted for persons experiencing 
        homelessness have been positive, the number and complexity of 
        such programs calls for simplification of the community led 
        grant making process.
    ``(b) Purpose.--It is the purpose of this Act--
            ``(1) to create a unified and performance based process for 
        allocating and administering funds under title IV;
            ``(2) to encourage comprehensive, collaborative local 
        planning of housing and services programs for persons 
        experiencing homelessness;
            ``(3) to focus the resources and efforts of the public and 
        private sectors on helping to prevent homelessness and to end 
        chronic homelessness;
            ``(4) to provide funds for programs and to implement 
        activities to assist individuals and families in the transition 
        from homelessness, and to prevent vulnerable individuals and 
        families from becoming homeless;
            ``(5) to consolidate the separate homeless assistance 
        programs carried out under title IV (consisting of the 
        supportive housing program, the safe havens for homeless 
        individuals demonstration program, the section 8 assistance for 
        single-room occupancy dwellings program, the shelter plus care 
        program, and the rural homeless housing assistance program) 
        into a single program with specific eligible activities; and
            ``(6) to allow flexibility and creativity in re thinking 
        solutions to homelessness, including housing strategies, 
        service delivery, and the involvement of persons experiencing 
        homelessness in decisionmaking regarding opportunities for 
        their long term stability, growth, well being and ultimate 
        self-sufficiency.''.

SEC. 3. 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) Chronically homeless person.--The term `chronically 
        homeless person' means an unaccompanied homeless individual 
        with a disabling condition who has either been continuously 
        sleeping in a place not meant for human habitation or in an 
        emergency homeless shelter for a year or more or who has had at 
        least four episodes of continuously sleeping in a place not 
        meant for human habitation or in an emergency homeless shelter 
        in the past three years.
            ``(2) Continuum of care board.--The term `continuum of care 
        board' means a legal entity that--
                    ``(A) is a representative community homeless 
                planning body established or designed in accordance 
                with section 402; and
                    ``(B) serves as the applicant for project sponsors 
                who jointly submit a single application for grants 
                under subtitle C in accordance with a collaborative 
                process.
            ``(3) Consolidated plan.--The term `Consolidated Plan' 
        means any such plan established by the Secretary by regulation 
        incorporating the applicable comprehensive housing 
        affordability strategy, and such other requirements as the 
        Secretary shall prescribe, in accordance with title I of the 
        Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 
        12704 et seq.).
            ``(4) Disabling condition.--The term `disabling condition' 
        means a diagnosable substance use disorder, serious mental 
        illness, developmental disability, or chronic physical illness 
        or disability, including the co-occurrence of two or more of 
        these conditions, that limits an individual's ability to work 
        or perform one or more activities of daily living.
            ``(5) Eligible person.--The term `eligible person' means, 
        with respect to subsections (a) and (e) of section 423, a 
        homeless individual with a disabling condition and the families 
        of such individuals.
            ``(6) Legal entity.--The term `legal entity' means--
                    ``(A) an entity organized or recognized under the 
                authority of state law;
                    ``(B) an organization associated with State or 
                local government; or
                    ``(C) a consortium of organizations associated with 
                state or local governments that has constituted itself 
                in accordance with subparagraph (A).
            ``(7) Permanent housing.--The term `permanent housing' 
        means housing, including rental assistance, without a 
        designated length of stay for homeless individuals with 
        disabling conditions and homeless families that include such an 
        individual that is an adult.
            ``(8) Private nonprofit organization..--The term `private 
        nonprofit organization' means an organization, including faith-
        based and other community-based organizations--
                    ``(A) organized and recognized under the authority 
                of state law;
                    ``(B) no part of the net earnings of which inures 
                to the benefit of any member, founder, contributor, or 
                individual;
                    ``(C) that has a voluntary board; and
                    ``(D) that has an accounting system, or has 
                designated a fiscal agent in accordance with 
                requirements established by the Secretary.
            ``(9) Project.--The term `project' means a structure or 
        structures (or a portion of such structure or structures) for 
        which--
                    ``(A) assistance under subtitle C is used to--
                            ``(i) acquire, rehabilitate, construct, 
                        lease or rent the structure;
                            ``(ii) make annual payments for operating 
                        costs; or
                            ``(iii) provide supportive services in 
                        connection therewith; or
                    ``(B) the Secretary provides technical assistance.
            ``(10) Project based.--The term `project-based', used with 
        respect to rental assistance, means assistance provided 
        pursuant to a contract that--
                    ``(A) is between--
                            ``(i) a project sponsor; and
                            ``(ii) an owner of an existing structure; 
                        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.
            ``(11) Project sponsor.--The term `project sponsor' means 
        the organization directly operating the proposed projects.
            ``(12) Secretary.--The term `Secretary' means the Secretary 
        of Housing and Urban Development.
            ``(13) State.--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, 
        the Northern Mariana Islands and Palau.
            ``(14) Supportive housing.--The term `supportive housing' 
        means a housing program that--
                    ``(A) helps homeless persons and families 
                transition from homelessness to living in safe, decent 
                and affordable housing in a manner that optimizes self-
                sufficiency; and
                    ``(B) provides supportive services and housing 
                assistance on either a transitional or permanent basis, 
                as determined by the assessed abilities and needs of 
                the program participants.
            ``(15) Supportive services.--The term `supportive services' 
        means the services described in section 428(c).
            ``(16) 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 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).
            ``(17) Transitional housing.--The term `transitional 
        housing' means housing, the purpose of which is to facilitate 
        the movement of individuals and families experiencing 
        homelessness to permanent housing within 24 months or such 
        longer period as the Secretary determines necessary.

``SEC. 402. CONTINUUM OF CARE BOARDS.

    ``(a) Establishment.--A continuum of care board shall be 
established for a geographic area for one or more units of general 
local government as a private nonprofit organization, or an 
organization associated with state or local government or a consortium 
thereof, which consortium is itself organized under authority of state 
law.
    ``(b) Mission.--A continuum of care board will lead a collaborative 
planning process to design, implement and evaluate programs, policies 
and practices to prevent and help end homelessness.
    ``(c) Appointment of an Agent.--
            ``(1) Subject to paragraph (2), a continuum of care board 
        may designate an agent to--
                    ``(A) apply for a grant under section 422(b); and
                    ``(B) receive and distribute grant funds awarded 
                under subtitle C.
            ``(2) Any continuum of care board that appoints an agent 
        pursuant to paragraph (1) shall nonetheless retain all of its 
        duties and responsibilities under this title.
    ``(d) Membership of Continuum of Care Board.--
            ``(1) In general.--A continuum of care board established 
        under subsection (a) shall be composed of persons--
                    ``(A) from a particular geographic area;
                    ``(B) not less than 65 percent of whom are--
                            ``(i) persons who are experiencing or have 
                        experienced homelessness (with not fewer than 
                        two persons being individuals who are 
                        experiencing or have experienced homelessness);
                            ``(ii) persons who act as advocates for the 
                        diverse subpopulations of persons experiencing 
                        homelessness;
                            ``(iii) persons or representatives of 
                        organizations who provide assistance to the 
                        variety of individuals and families 
                        experiencing homelessness and those at risk of 
                        homelessness, including entities such as law 
                        enforcement and health and mental health 
                        organizations;
                            ``(iv) members of the business community 
                        and local workforce investment boards 
                        established under the Workforce Investment Act 
                        of 1998 (29 U.S.C. 2801 et seq.);
                            ``(v) members of neighborhood advocacy 
                        organizations; and
                            ``(vi) members of philanthropic 
                        organizations that contribute to preventing and 
                        ending homelessness in the geographic area of 
                        the continuum of care board; and
                    ``(C) the remainder of whom, but not less than one 
                individual, are selected from among government agency 
                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.
            ``(2) Waiver.--The Secretary may, for good cause and on a 
        case-by-case basis, waive the requirements of section 402(d)(1) 
        as he determines to be necessary or appropriate.
    ``(e) Composition and Rotation of Membership of Board.--
            ``(1) Composition.--To the extent practicable, all of the 
        individuals, organizations, agencies and businesses described 
        in subsection (d)(1) shall be represented on the continuum of 
        care board.
            ``(2) Rotation of membership.--The continuum of care board 
        shall rotate its membership, upon such terms as designated by 
        the Secretary, to ensure that individuals and representatives 
        of all agencies, businesses, and organizations who are 
        described in subsection (d)(1) and invested in developing and 
        implementing strategies to prevent and help end homelessness 
        are able to participate as decisionmaking members of the 
        continuum of care board.
    ``(f) Remedial Action.--If the Secretary finds that a continuum of 
care 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 project sponsors 
within that area. Such measures may include designating another body as 
a continuum of care board.
    ``(g) Duties.--A continuum of care board shall--
            ``(1)(A) design a collaborative process, established 
        jointly and complied with by its members, for evaluating, 
        reviewing, prioritizing, awarding, and monitoring projects and 
        applications submitted by project sponsors for funding under 
        subtitle C in such a manner as to ensure that the project 
        sponsors involved further the goal of preventing homelessness 
        and helping to end chronic homelessness and promoting self-
        sufficiency in the geographic area involved;
            ``(B)(i) review relevant policies and practices (in place 
        and planned) of public and private entities in the geographic 
        area served by the continuum of care 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--
                    ``(I) 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, the programs of block grants to States for 
                temporary assistance for needy families established 
                under part A of title IV of the Social Security Act (42 
                U.S.C. 601 et seq.), foster care or youth programs, or 
                correctional programs);
                    ``(II) the access to programs for which homeless 
                persons would be eligible; and
                    ``(III) local policies and practices relating to 
                zoning and other land use controls, land development 
                standards, fees, codes, and their administration and 
                enforcement, to help to reduce regulatory barriers that 
                prevent the reasonable inclusion and distribution in 
                the geographic area of persons experiencing 
                homelessness; and
            ``(iii) in conducting the review, determine the 
        modifications and corrective actions that need to be taken, and 
        by whom, so that the relevant policies and practices do not 
        stimulate, or prolong, homelessness in the geographic area;
            ``(2)(A) require, consistent with the Government 
        Performance and Results Act of 1993 (31 U.S.C. 1101 et seq.) 
        and amendments thereto, that project sponsors who are funded by 
        grants received under subtitle C 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 helping to end homelessness for the persons that 
        such project sponsors serve;
            ``(B) request that States and local governments who 
        distribute funds under subtitle B submit information and 
        comments on the administration of activities under subtitle B, 
        to enable the continuum of care board to plan and design a full 
        continuum of care for persons experiencing homelessness;
            ``(3) provide, consistent with the Government Performance 
        and Results Act of 1993 and amendments thereto, an independent 
        outcome based evaluation of the homeless assistance planning 
        process of the continuum of care board to measure the 
        performance of the continuum of care board in ending chronic 
        homelessness and in preventing or helping to end the 
        homelessness of persons in the geographic area of the continuum 
        of care board;
            ``(4) participate in the Consolidated Plan, and coordinate 
        with other jurisdictional plans related to homelessness, 
        including 10-year plans to end chronic homelessness for the 
        geographic area served by the continuum of care board; and
            ``(5) arrange for an annual audit of the financial records 
        of each project carried out by a project sponsor funded by a 
        grant received under subtitle C.
    ``(h) Conflict of Interest.--
            ``(1) No member of a continuum of care board may 
        participate in decisions of the continuum of care board 
        concerning a grant under subtitle C, or provision of other 
        financial benefits, to such member or the organization that 
        such member represents.
            ``(2) 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 subtitle C.
    ``(i) Homeless Management Information System.--In accordance with 
standards established by the Secretary, each continuum of care board 
shall ensure consistent participation by project sponsors in a 
community-wide homeless management information system. The continuum of 
care board shall ensure the participation for purposes of collecting 
unduplicated counts of individuals experiencing homelessness, analyzing 
patterns of use of assistance provided under subtitle C for the 
geographic area involved, implementing an effective information and 
referral system, and providing information for the needs analyses and 
funding priorities of continuum of care boards.'';
            (4) by inserting after section 403 (as redesignated in 
        paragraph (2)) the following:

``SEC. 404. TECHNICAL ASSISTANCE AND SPECIAL INITIATIVES.

    ``(a) Technical Assistance.--To aid in effectively carrying out the 
provisions of this title, the Secretary shall make technical assistance 
available to continuum of care boards and project sponsors or potential 
project sponsors.
    ``(b) Special Initiatives.--The Secretary may make funds available 
under this title for special initiatives and demonstration programs 
that would further the purposes of this title.
    ``(c) Reservation.--The Secretary may reserve not more than one 
percent of the funds made available for any fiscal year for carrying 
out subtitles B and C, to provide technical assistance and funding for 
special initiatives under subsections (a) and (b).

``SEC. 405. PERFORMANCE REPORTS AND MONITORING.

    ``(a) In General.--A continuum of care 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 continuum of care 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 and the number of individuals 
        experiencing homelessness who were provided emergency shelter, 
        transitional or permanent housing, or supportive services, with 
        the grant awarded in the fiscal year prior to the fiscal year 
        in which the report was submitted;
            ``(2) estimate the number of persons experiencing 
        homelessness in the geographic area served by the continuum of 
        care 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 including efforts to coordinate services and 
        programs;
            ``(4) assess the consistency and coordination between the 
        programs funded under subtitles B and C in the prior fiscal 
        year and the Consolidated Plan and other jurisdictional plans 
        related to homelessness, including 10-year plans to end chronic 
        homelessness;
            ``(5) for each project sponsor funded through a grant under 
        subtitle c that is within the jurisdiction of the continuum of 
        care board--
                    ``(A) include a performance evaluation;
                    ``(B) include a report, resulting from an audit 
                conducted under section 402(g)(5), detailing whether 
                the project sponsor has carried out the record-keeping 
                and reporting requirements of section 429(b)(8); and
            ``(6) 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) Monitoring by the Secretary.--
            ``(1) Continuum of care boards.--At time intervals 
        determined by the Secretary, the Secretary shall--
                    ``(A) ensure that continuum of care boards have 
                complied with the requirements of subsection (b)(5) and 
                section 402(g)(5);
                    ``(B) require continuum of care boards receiving 
                funds under subtitle C to establish such fiscal control 
                and fund accounting procedures as may be necessary to 
                assure the proper disbursal of, and accounting for, 
                Federal funds awarded to the continuum of care board 
                under subtitle C in order to ensure that all financial 
                transactions carried out under subtitle C are 
                conducted, and records maintained, in accordance with 
                generally accepted accounting principles; and
                    ``(C) for a selected sample of continuum of care 
                boards receiving funds under subtitle C--
                            ``(i) ensure that each selected continuum 
                        of care board has satisfactorily carried out 
                        the recordkeeping and reporting requirements of 
                        subsections (a) and (b), section 429(b)(3), 
                        and, if applicable, section 429(b)(6); and
                            ``(ii) audit the financial records of each 
                        selected continuum of care board receiving 
                        funds under subtitle C to carry out section 
                        423(a)(9)(A), using Federal auditors or their 
                        designate.
            ``(2) Project sponsors.--At time intervals determined by 
        the Secretary, the Secretary shall select a sample of project 
        sponsors and shall conduct a performance evaluation of each 
        project of each selected project sponsor funded under subtitle 
        C, using the outcome-based evaluation measures developed by the 
        appropriate continuum of care board in accordance with section 
        402(g)(2) and including the measurements described in section 
        423(a)(9).
    ``(d) Action by Secretary.--Based on the information available to 
the Secretary, including information obtained pursuant to subsections 
(b) and (c), the Secretary may adjust, reduce, or withdraw amounts made 
available (or that would otherwise be made available) to continuum of 
care boards, or take other action as appropriate, except that amounts 
already properly expended on eligible activities under this title may 
not be recaptured by the Secretary.''; and
            (5) by inserting after section 406 (as redesignated in 
        paragraph (2)) the following:

``SEC. 407. AUTHORIZATION OF APPROPRIATIONS.

    ``(a) In General.--There are authorized to be appropriated to carry 
out this title $1,536,000,000 for fiscal year 2007 and such sums as may 
be necessary for each of fiscal years 2008, 2009, 2010, and 2011.
    ``(b) Samaritan Chronic Homelessness Initiative.--Of the amounts 
specified in subsection (a), no more than $200,000,000 for fiscal year 
2007 and such sums as may be necessary for fiscal years 2008, 2009, 
2010, and 2011 shall be used for the Samaritan Chronic Homelessness 
Initiative authorized under section 425.''.

SEC. 4. 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, to the extent amounts are approved in 
appropriations Acts under section 407, 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 appropriated to carry out title IV 
for a fiscal year, the Secretary shall allocate nationally not more 
than 15 percent of such amount for subtitle B.
    ``(b) Allocation.--An entity that receives a grant under section 
412, and serves an area that includes one or more geographic areas (or 
portions of such areas) served by continuum of care 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 continuum of care 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.'';
            (4) by repealing section 417 (42 U.S.C. 11377); and
            (5) by redesignating section 418 (42 U.S.C. 11378) as 
        section 417.

SEC. 5. 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 Housing 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 implementation of activities that can 
        prevent vulnerable individuals and families from becoming 
        homeless;
            ``(2) to promote the development of transitional and 
        permanent housing;
            ``(3) to provide rental housing assistance to homeless 
        individuals with disabling conditions and the families of such 
        individuals;
            ``(4) to help eliminate systematic barriers to accessing 
        federal, state and local programs for which homeless persons 
        may be eligible; and
            ``(5) to encourage and foster self-sufficiency among 
        homeless individuals.

``SEC. 422. COMMUNITY HOMELESS ASSISTANCE PROGRAM.

    ``(a) Projects.--The Secretary shall make grants to continuum of 
care boards to carry out homeless assistance and prevention projects.
    ``(b) Applications.--
            ``(1) Submission to the secretary.--To receive a grant 
        under subsection (a), a continuum of care board shall submit an 
        application to the Secretary at such time and in such manner as 
        the Secretary may require, and containing--
                    ``(A) the information described in subsections (a) 
                and (b) of section 429; and
                    ``(B) other information that shall--
                            ``(i) describe the establishment or 
                        designation and function of the continuum of 
                        care board, including the nomination and 
                        selection process of all members of the 
                        continuum of care board;
                            ``(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 continuum of care board seeks 
                        funding regarding--
                                    ``(I) prevention activities;
                                    ``(II) outreach activities to 
                                assess the needs and conditions of 
                                persons experiencing homelessness; and
                                    ``(III) emergency shelters, 
                                transitional housing, permanent 
                                housing, and needed supportive 
                                services;
                            ``(iii) identify funds from private and 
                        public sources, other than funds received under 
                        subtitles B and C, that the State, units of 
                        general local government, continuum of care 
                        boards, 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;
                            ``(iv) explain--
                                    ``(I) how the continuum of care 
                                board will meet the housing and service 
                                needs of individuals and families 
                                experiencing homelessness in the 
                                applicant's community; and
                                    ``(II) how the continuum of care 
                                board will integrate the plan with the 
                                strategy of the State and units of 
                                general local government in the 
                                geographic area to prevent homelessness 
                                and end chronic homelessness, 
                                including, as part of that strategy, a 
                                work plan for the applicable fiscal 
                                years;
                            ``(v) report on the outcome based 
                        performance of the homeless programs within the 
                        geographic area served by the continuum of care 
                        board that were funded under this title in the 
                        fiscal year prior to the fiscal year in which 
                        the application is submitted;
                            ``(vi) include any relevant required 
                        agreements under this subtitle; and
                            ``(vii) contain a certification of 
                        consistency with the Consolidated Plan pursuant 
                        to section 403.
            ``(2) Selection criteria.--The Secretary shall select 
        continuum of care boards to receive assistance under this 
        subtitle by a national competition based on criteria 
        established by the Secretary, which shall include--
                    ``(A) the need for assistance in the area;
                    ``(B) the ability and capacity of the continuum of 
                care board to carry out its duties and obligations 
                under this subtitle and to effectively manage the 
                distribution of grant funds;
                    ``(C) the extent to which the amount of assistance 
                to be provided under this subtitle will be supplemented 
                with resources from other public and private sources;
                    ``(D) the extent to which the continuum of care 
                board has demonstrated coordination with the other 
                Federal, State, local, private, and other entities 
                serving individuals experiencing homelessness in the 
                planning and operation of projects;
                    ``(E) the performance of the continuum of care 
                board and its projects; and
                    ``(F) such other factors as the Secretary 
                determines to be appropriate to carry out this subtitle 
                in an effective and efficient manner.
            ``(3) Announcement of awards.--The Secretary shall announce 
        the grants to be made under subsection (a) 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 continuum of care board receiving a 
                        grant announced under paragraph (3) shall, with 
                        respect to a project to be funded through such 
                        grant, meet, or cause the project sponsor to 
                        meet, all requirements for the obligation of 
                        funds for such project, including, to the 
                        extent applicable, 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 continuum of care board 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, to the extent applicable, 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 
                        continuum of care board shall meet or cause a 
                        project sponsor to meet the requirements 
                        described in clauses (i) and (ii) if the 
                        Secretary determines that compliance with the 
                        requirements was delayed due to factors beyond 
                        the reasonable control of the continuum of care 
                        board 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.--After a continuum of care board 
                meets or causes a project sponsor to meet the 
                requirements described in subparagraph (A), the 
                Secretary shall obligate the funds for the grant 
                involved.
                    ``(C) Expenditure of funds.--The Secretary shall 
                establish deadlines for timely expenditure of funds. 
                The Secretary may recapture the funds not expended by 
                such deadlines.
    ``(c) Notification of Final Pro Rata Estimated Need Amounts.--
            ``(1) Notice.--The Secretary shall inform each continuum of 
        care board, at a time concurrent with the release of the Notice 
        of Funding Availability for the grants, of the final pro rata 
        estimated need amount under this subtitle for the geographic 
        area represented by the continuum of care board.
            ``(2) Methodology for determining amount.--
                    ``(A) Subject to subparagraph (B), the final pro 
                rata estimated need amount under paragraph (1) shall be 
                determined using a methodology selected by Secretary.
                    ``(B) Prior to selecting the methodology referenced 
                in subparagraph (A), the Secretary shall notify the 
                public of the proposed methodology, provide the public 
                with the opportunity to comment on such methodology, 
                and consider such comments in selecting the 
                methodology.
            ``(3) Combinations or consortia.--For a continuum of care 
        board that represents a combination or consortium of geographic 
        areas, the estimated need amount shall be the sum of the 
        estimated need amounts for the jurisdictions within the 
        geographic areas represented by the continuum of care board.

``SEC. 423. ELIGIBLE ACTIVITIES.

    ``(a) In General.--The Secretary may make grants to continuum of 
care boards under section 422 to carry out homeless assistance and 
prevention that consist of one or more of the following eligible 
activities:
            ``(1) Construction of housing.
            ``(2) Acquisition, renovation, conversion or rehabilitation 
        of a structure to provide housing.
            ``(3) Leasing of property, or portions of property, not 
        owned by the continuum of care board or project sponsor 
        involved, for use in providing housing or supportive services.
            ``(4) Provision of tenant-based rental housing assistance 
        for eligible persons.
            ``(5) Provision of project-based rental housing assistance 
        for eligible persons.
            ``(6) Payment of operating costs for housing units assisted 
        under this subtitle.
            ``(7) Providing 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 assisting persons experiencing homelessness to access and 
        retain housing, for both new projects and projects receiving 
        renewal funding.
            ``(8)(A) Payment of administrative costs of the continuum 
        of care board for planning, administering grants for, 
        maintaining, and evaluating projects, and ensuring compliance 
        with homeless management information system requirements 
        described in section 402(i) may not be more than 6 percent of 
        the total funds made available through the grant. The project 
        sponsor may use up to 5 percent of the funds it receives from 
        the continuum of care board for administrative costs.
            ``(B) For purposes of this paragraph, monitoring and 
        evaluating shall include--
                    ``(i) measuring the outcomes of the homeless 
                assistance planning process of a continuum of care 
                board for preventing homelessness and helping to end 
                chronic homelessness;
                    ``(ii) the effective and timely implementation of 
                specific projects funded under this subtitle, relative 
                to projected outcomes; and
                    ``(iii) 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 for which a continuum of care 
        board may use up to 10 percent of the funds made available 
        through a grant under section 422, 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 three 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), a continuum of 
care board 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 to further the 
purposes of this title 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 15 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 project sponsor carrying out a 
        project that provides transitional or permanent housing submits 
        a request to the continuum of care board to carry out instead a 
        project for the direct benefit of very low income persons, and 
        the continuum of care board determines that the initial project 
        is no longer needed to provide transitional or permanent 
        housing, the continuum of care board may approve the project 
        described in the request and authorize the project sponsor to 
        carry out that project.
    ``(e) Rental Assistance.--
            ``(1) Tenant-based rental assistance.--
                    ``(A) Authority.--Grants under section 422 may be 
                used to provide tenant-based rental assistance for 
                eligible persons in accordance with this paragraph.
                    ``(B) Housing assistance.--An eligible person on 
                behalf of whom assistance is provided under this 
                subtitle shall select the unit in which such person 
                will live using rental assistance under this subtitle; 
                except that where necessary to assure that the 
                provision of supportive services to persons is 
                feasible, a continuum of care board or project sponsor 
                may require that a person participating in the program 
                live (i) in a particular structure or unit for up to 
                the first year of participation, and (ii) within a 
                particular geographic area for the full period of 
                participation or the period remaining after the period 
                referred to in subclause (i).
                    ``(C) Amount of assistance.--The contract with a 
                continuum of care board for assistance under this 
                subtitle shall be for a term of 5 years. Each contract 
                shall provide that the continuum of care board shall 
                receive aggregate amounts not to exceed the appropriate 
                existing housing fair market rent limitation under 
                section 8(c) of the United States Housing Act of 1937 
                in effect at the time the application is approved. At 
                the option of the continuum of care board and subject 
                to the availability of such amounts, the continuum of 
                care board may receive in any year (i) up to 25 percent 
                of such amounts or (ii) such higher percentage as the 
                Secretary may approve upon a demonstration satisfactory 
                to the Secretary that the continuum of care board has 
                entered into firm financial commitments to ensure that 
                the housing assistance described in the application 
                will be provided for the full term of the contract. Any 
                amounts not needed for a year may be used to increase 
                the amount available in subsequent years.
            ``(2) Project-based rental assistance.--
                    ``(A) Authority.--Grants under section 422 may be 
                used to provide project-based rental assistance for 
                eligible persons in accordance with this subsection.
                    ``(B) Housing assistance.--Assistance under this 
                subtitle shall be provided pursuant to a contract 
                between the continuum of care board or the project 
                sponsor and an owner of an existing structure. The 
                contract shall provide 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.
                    ``(C) Term of contract and amount of assistance.--
                            ``(i) Term of contract.--Each contract 
                        under subparagraph (B) shall be for a term of 5 
                        years, and the owner shall have an option to 
                        renew the assistance for an additional 5-year 
                        term, subject to the availability of amounts 
                        provided in appropriations Acts; except that if 
                        an expenditure of at least $3,000 for each unit 
                        (including its prorated share of work on common 
                        areas or systems) is required to make the 
                        structure decent, safe, and sanitary, and the 
                        owner agrees to carry out the rehabilitation 
                        with resources other than assistance under this 
                        subtitle within 12 months of notification of 
                        grant approval, the contract shall be for a 
                        term of 10 years.
                            ``(ii) Amount of assistance.--Each contract 
                        shall provide that the recipient shall receive 
                        aggregate amounts not to exceed the appropriate 
                        existing housing fair market rental under 
                        section 8(c)(1) of the United States Housing 
                        Act of 1937 in effect at the time the 
                        application is approved. Any amounts not needed 
                        for a year may be used to increase the amount 
                        available in subsequent years.
            ``(3) Tenant rent.--In the case of a project that includes 
        tenant-based or project-based rental assistance, each tenant 
        shall pay as rent an amount determined in accordance with the 
        provisions of section 3(a)(1) of the United States Housing Act 
        of 1937 (42 U.S.C. 1437a(a)(1)).

``SEC. 424. TERMINATION OF TENANCY.

    ``(a) Termination of Tenancy in Permanent Housing.--A project 
sponsor shall not terminate the tenancy or refuse to renew the lease of 
a tenant living in permanent housing funded by a grant under this 
subtitle except for serious or repeated violations of the terms and 
conditions of the lease, for a violation of applicable Federal, State, 
or local law, or other good cause. Any termination or refusal to renew 
must be preceded by not less than 30 days by the project sponsor's 
service upon the tenant of a written notice specifying the grounds for 
the action.
    ``(b) Termination of Tenancy in Transitional Housing.--If an 
individual or family occupying transitional housing funded under this 
subtitle violates significant program requirements, or violates 
applicable Federal, State, or local law, the project sponsor may 
terminate the housing assistance in accordance with a formal process 
established by the project sponsor that recognizes the rights of 
individuals receiving such assistance to due process of law, which may 
include a hearing.

``SEC. 425. INCENTIVES TO CREATE SAMARITAN CHRONIC HOMELESSNESS 
              INITIATIVE.

    ``(a) In General.--In making grants to continuum of care boards 
under section 422, the Secretary shall provide the incentives described 
in subsection (b) to promote the creation of new permanent housing 
units through the construction, acquisition and rehabilitation, leasing 
, or provision of rental assistance of permanent housing units, that 
are owned or leased by a project sponsor or other independent entity 
who entered into a contract with a project sponsor, for chronically 
homeless persons.
    ``(b) Assistance for Chronically Homeless Persons.--A continuum of 
care board that receives assistance under section 422 to implement a 
project that involves the construction, acquisition and rehabilitation, 
leasing, or provision of rental assistance of permanent housing units 
described in subsection (a) for chronically homeless persons shall also 
receive, as part of the grant, a bonus in an amount to be determined by 
the Secretary to carry out permanent housing activities with supportive 
services, as determined by the Secretary, for chronically homeless 
persons.

``SEC. 426. REPAYMENT OF ASSISTANCE AND PREVENTION OF UNDUE BENEFITS.

    ``(a) Repayment.--If assistance is provided 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--
            ``(1) earlier than 10 years after operation of the project 
        begins, the continuum of care board (or the project sponsor 
        receiving funds from the continuum of care board) shall repay 
        100 percent of the assistance; or
            ``(2) not earlier than 10 years, but earlier than 15 years, 
        after operation of the project begins, the continuum of care 
        board (or the project sponsor receiving funds from the 
        continuum of care board) shall repay 20 percent of the 
        assistance for each of the years in the 15 year period for 
        which the project fails to provide that housing.
    ``(b) Prevention of Undue Benefits.--Except as provided in 
subsection (c) 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 15 year 
period beginning on the date that operation of the project begins, the 
continuum of care board (or the project sponsor receiving funds from 
the continuum of care board) who received the assistance shall comply 
with such terms and conditions as the Secretary may prescribe to 
prevent the continuum of care board (or a project sponsor receiving 
funds from the continuum of care board) from unduly benefiting from 
such sale or disposition.
    ``(c) Exception.--A continuum of care board (or a project sponsor 
receiving funds from the continuum of care board) shall not be required 
to make the repayments, and comply with the terms and conditions, 
required under subsection (a) or (b) if--
            ``(1) 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
            ``(2) all of the proceeds of the sale or disposition are 
        used to provide transitional or permanent housing meeting the 
        requirements of this subtitle.'';
            (3) by redesignating section 424 (42 U.S.C. 11384) as 
        section 427;
            (4) in section 425 (42 U.S.C. 11385)--
                    (A) by redesignating this section as section 428;
                    (B) by striking subsection (c) and inserting the 
                following:
    ``(c) Services.--Supportive services may include such services as 
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 assisting persons experiencing homelessness to access and 
retain housing.'';
            (5) in section 426 (42 U.S.C. 11386)--
                    (A) by redesignating this section as section 429;
                    (B) in subsection (a)--
                            (i) in paragraph (1), by striking ``this 
                        subtitle'' and inserting ``section 422'';
                            (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 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 ``continuum of care board (or a 
                        project sponsor receiving funds from the 
                        continuum of care board)'';
                    (C) by striking subsections (b) and (c) and 
                inserting:
    ``(b) Required Agreements.--The Secretary may not provide 
assistance for a proposed project under this subtitle unless the 
continuum of care board involved agrees to--
            ``(1) ensure the operation of the project in accordance 
        with the provisions of this subtitle;
            ``(2) conduct ongoing monitoring to ensure that homeless 
        persons are not systematically denied access to programs for 
        which they may be eligible;
            ``(3) monitor and report to the Secretary on the progress 
        of the project;
            ``(4) develop and implement procedures to ensure--
                    ``(A) the confidentiality of records pertaining to 
                any individual provided family violence prevention or 
                treatment services through the project; and
                    ``(B) that the address or location of any family 
                violence shelter project assisted under this subtitle 
                will not be made public, except with written 
                authorization of the person responsible for the 
                operation of such project;
            ``(5) involve homeless individuals and families, to the 
        maximum extent practicable, through employment, volunteer 
        services, or otherwise, in constructing, rehabilitating, 
        maintaining, and operating the project assisted under this 
        subtitle and in providing supportive services for the project;
            ``(6) establish such fiscal control and fund accounting 
        procedures as may be necessary to assure the proper disbursal 
        of, and accounting of, such funds in order to ensure that all 
        financial transactions carried out with such funds are 
        conducted, and records maintained, in accordance with generally 
        accepted accounting principles;
            ``(7) ensure, to the extent practicable, that any permanent 
        housing that is created under a grant under this subtitle is 
        located in a mixed income environment;
            ``(8) require each project sponsor who is funded by a grant 
        received under this subtitle to establish such fiscal control 
        and fund accounting procedures as may be necessary to assure 
        the proper disbursal of, and accounting for, Federal funds 
        received by the project sponsor under this subtitle in order to 
        ensure that all financial transactions carried out under this 
        subtitle are conducted, and records maintained, in accordance 
        with generally accepted accounting principles; and
            ``(9) comply with such other terms and conditions as the 
        Secretary may establish to carry out this subtitle in an 
        effective and efficient manner.'';
                    (D) by redesignating subsection (d) as subsection 
                (c), and in the first sentence, by striking 
                ``recipient'' and inserting ``project sponsor'';
                    (E) by striking subsection (e);
                    (F) by redesignating subsections (f), (g), and (h), 
                as subsections (d), (e), and (f), respectively;
                    (G) in subsection (e) (as redesignated in 
                subparagraph (E)), in the first sentence, by striking 
                ``recipient'' each place it appears and inserting 
                ``continuum of care board or project sponsor'';
                    (H) by striking subsection (i); and
                    (I) by redesignating subsection (j) as subsection 
                (g);
            (6)(A) by repealing sections 427 and 429 (42 U.S.C.11387, 
        11389); and
            (B) by redesignating section 428 (42 U.S.C. 11388) as 
        section 436; and
            (7) by inserting after section 429, as redesignated, the 
        following:

``SEC. 430. MATCHING FUNDING.

    `` A recipient of a grant under this subtitle shall supplement the 
amounts provided in the grants, in cash from any source, in an amount 
equal to not less than 25 percent of the Federal funds provided under 
the grant.

``SEC. 431. ALLOCATION AMOUNTS AND INCENTIVES FOR SPECIFIC ELIGIBLE 
              ACTIVITIES.

    ``(a) Annual Portion of Appropriated Amount Available.--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 
each continuum of care board for that fiscal year shall be used for 
housing activities, exclusive of the Samaritan Chronic Homelessness 
Initiative under section 425, to develop and sustain permanent housing, 
including operating costs and leasing and rental housing assistance, in 
order to help create and sustain affordable permanent housing for 
homeless individuals with disabling conditions and homeless families 
that include such an individual who is an adult.
    ``(b) Funding for Acquisition, Construction, and Rehabilitation of 
Permanent or Transitional Housing.--Nothing in this title 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. 432. TREATMENT OF PREVIOUSLY OBLIGATED AMOUNTS.

    ``Notwithstanding the amendment or repeal of any provision of law 
by the Homeless Assistance Consolidation Act of 2006, any amounts 
appropriated to carry out the provisions so amended or repealed that 
are obligated before the effective date of the Homeless Assistance 
Consolidation Act of 2006 shall be used in the manner provided, and 
subject to any requirements and agreements entered into, under such 
provisions as such provisions were in effect immediately before such 
effective date.

``SEC. 433. APPEAL PROCEDURE.

    ``(a) In General.--With respect to funding under this subtitle, if 
certification of consistency with the Consolidated Plan or other 
jurisdictional plans related to homelessness, including 10-year plans 
to end chronic homelessness, 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. 434. NONDISCRIMINATION, PREFERENCES FOR PERSONS WITH SPECIFIC 
              DISABLING CONDITIONS AND GENDER-SPECIFIC ACTIVITIES.

    ``(a) Nondiscrimination.--No person in the United States shall on 
the grounds of race, color, national origin, religion, or sex, be 
excluded from participation in, be denied the benefits of, or be 
subjected to discrimination under any program or activity funded in 
whole or in part with funds made available under this title. Any 
prohibition against discrimination on the basis of age under the Age 
Discrimination Act of 1975 (42 U.S.C. 6101 et seq.), or with respect to 
an otherwise qualified individual with a disability as provided in 
section 504 of the Rehabilitation Act of 1973 (29 U.S.C. 794) shall 
also apply to any such program or activity.
    ``(b) Preferences for Persons With Specific Disabling Conditions.--
All homeless assistance and prevention activities funded under this 
title serving individuals with disabling conditions must be available 
to all such individuals without regard to their type of disability, 
except that a preference for individuals with specific types of 
disabling conditions can be provided in activities funded under this 
title if--
            ``(1) services appropriate for that population are 
        provided;
            ``(2) serving this population in this manner is necessary 
        to provide qualified homeless individuals with a disabling 
        condition and families that include such an adult individual 
        housing, aid, benefits, or services that are as effective as 
        those provided to others; and
            ``(3) such homeless assistance and prevention activities 
        are open to all otherwise eligible individuals with a disabling 
        condition and families that include such an adult individual 
        who may benefit from the services provided.
    ``(c) Gender-Specific Activities.--This title shall not be 
construed to prohibit any project sponsor from maintaining or 
constructing separate living facilities or restroom facilities for the 
different sexes or offering gender-specific assistance in order to 
protect personal safety, privacy, or modesty.
    ``(d) Renewals.--Notwithstanding any other provision of this 
subtitle, the Secretary may provide renewal grants under this subtitle 
for rental assistance projects that--
            ``(1) were funded under the authority of Parts I, II, III 
        and IV of Subtitle F of this title as it existed immediately 
        prior to enactment of the Homeless Assistance Consolidation Act 
        of 2006; and
            ``(2) are designed and carried out to exclusively serve 
        persons who are seriously mentally ill; have chronic problems 
        with alcohol, drugs, or both; or have acquired immunodeficiency 
        syndrome and related diseases.

``SEC. 435. ENVIRONMENTAL REVIEW.

    ``For purposes of environmental review, assistance and projects 
under this title shall be treated as assistance for special projects 
that are subject to section 305(c) of the Multifamily Housing Property 
Disposition Reform Act of 1994, and shall be subject to the regulations 
issued by the Secretary to implement such section.''.

SEC. 6. 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.--Section 403(l) of the McKinney Vento 
Homeless Assistance Act, as redesignated in section 4(2), is amended--
            (1) by striking ``current housing affordability strategy'' 
        and inserting ``Consolidated Plan''; and
            (2) by inserting before the comma the following: 
        ``(referred to in that section as a ''comprehensive housing 
        affordability strategy``)''.

SEC. 7. EFFECTIVE DATE.

     This Act shall take effect one year after the date of enactment.
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