I 111th CONGRESS 1st Session H. R. 766 IN THE HOUSE OF REPRESENTATIVES January 28, 2009 Ms. Eddie Bernice Johnson of Texas introduced the following bill; which was referred to the Committee on Financial Services, and in addition to the Committee on Energy and Commerce, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned A BILL To encourage States and units of general local government to use amounts received under the community development block grant program and the community mental health services and substance abuse block grant programs to provide housing counseling and financial counseling for individuals before their release from inpatient or residential institutions for individuals with mental illness and periodic evaluation of the appropriateness of such counseling after such release.

1.

Short title

This Act may be cited as the Community Assistance Act for Persons with Mental Illness.

2.

Findings

The Congress finds the following: (1)Many homeless individuals in the United States are individuals who have been discharged from inpatient or residential institutions for individuals with mental illness. (2)With proper predischarge housing counseling and related services, many such individuals can be accommodated in existing housing facilities. (3)Residential institutions for individuals with mental illness are funded and operated by States and units of general local government without direct Federal involvement.

3.

Definitions

Section 1919 of the Public Health Service Act (42 U.S.C. 300x–8) is amended by adding at the end the following new paragraphs: (3)

Housing counseling

The term housing counseling means counseling furnished to an individual before the individual’s release from an inpatient or residential institution for individuals with mental illness that includes discussions with an accredited or experienced advisor from a community-based non-profit organization on, and distribution to such individual by such an advisor of, information about how the application and grant processes work for Federal, State, and local housing assistance, about selection preferences for such housing assistance, about how rent is determined for applicable public housing, and about the duration for which the individual would be eligible to stay in such public housing. Such counseling shall include information on any of the following topics, as appropriate: (A)Housing choice vouchers under section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)). (B)Direct housing subsidies. (C)Non-profit housing. (D)Public housing (as such term is defined in section 3(b) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)). (E)Rent supplements and assistance programs. (F)Co-operative housing. (G)Permanent supportive housing. (H)Private-sector housing affordable to the individual. (I)Tax credit programs. (J)Local laws regarding renters’ rights. (K)Home mortgages. (L)Mortgage refinancing. (M)Home equity loans. (N)Home repair loans. (O)Property taxes. (P)Other housing options for low-income individuals or other applicable groups of individuals. (4)

Financial counseling

The term financial counseling means counseling furnished to an individual before the individual’s release from a residential institution for individuals with mental illness that includes discussions with an accredited or experienced advisor from a community-based non-profit organization on, and distribution to such individual by such an advisor of, information about issues relating to financial literacy and education to promote an understanding of consumer, economic, and personal finance issues and concepts, including the following, as appropriate: (A)Saving for retirement. (B)Managing credit. (C)Long-term care. (D)Estate planning. (E)Predatory lending. (F)Identity theft. (G)Financial abuse schemes. (H)Work incentives. (I)Money management skills building. .

4.

Use of certain block grant funds for housing counseling, financial counseling, and periodic evaluation

(a)

Use of funds under existing program permitted

Funds made available to States and units of general local government under the community development block grant program under title I of the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.), and under the block grant programs for community mental health services and for the prevention and treatment of substance abuse under part B of title XIX of the Public Health Service Act (42 U.S.C. 300x et seq.), may be used for purposes of providing housing counseling and financial counseling (as such terms are defined in paragraphs (3) and (4), respectively, of section 1919 of the Public Health Service Act (42 U.S.C. 300x–8), as added by section 3) for individuals before their release from inpatient or residential institutions for individuals with mental illness and for purposes of biannual evaluations of the appropriateness of such counseling provided for such individuals following such release. (b)

Sense of congress about using funds for this purpose

It is the sense of Congress that States and units of general local government should use a reasonable portion of the funds described in subsection (a) to provide for housing counseling, financial counseling, and biannual evaluations described in such subsection.

5.

Amendments to the Housing and Community Development Act of 1974 and Public Health Service Act

(a)

Statement of projected use of funds and reports by recipients of community development block grant funds

(1)

Statement of projected use of funds to include funds used for housing counseling and financial counseling

Section 104(a)(1) of the Housing and Community Development Act of 1974 (42 U.S.C. 5304(a)(1)) is amended by adding at the end the following new sentence: Each statement of projected use of funds required under this paragraph shall include a specific statement of the portion of funds received under section 106 that are expected to be used pursuant to section 4(a) of the Community Assistance Act for Persons with Mental Illness to provide housing counseling and financial counseling (as such terms are defined in section 1919 of the Public Health Service Act) for individuals before their release from inpatient or residential institutions for individuals with mental illness and for biannual evaluations of the appropriateness of such counseling provided for such individuals following such release.. (2)

Reports on housing counseling and financial counseling provided

Section 104(e) of the Housing and Community Development Act of 1974 (42 U.S.C. 5304(e)) is amended by inserting after the third sentence the following new sentences: The report shall include a specific statement of the portion of funds received by the grantee under section 106 that were used pursuant to section 4(a) of the Community Assistance Act for Persons with Mental Illness to provide housing counseling and financial counseling (as such terms are defined in section 1919 of the Public Health Service Act) for individuals before their release from inpatient or residential institutions for individuals with mental illness, a description of the housing counseling and financial counseling provided, a specific statement of the portion of such funds used to evaluate biannually the appropriateness of such counseling provided for such individuals following such release, and a description of the type of the evaluations made. The report shall also include recommendations for the further improvement of such counseling and such biannual evaluations.. (b)

State plan and reports by States receiving Block Grants for Community Mental Health Services and for Prevention and Treatment of Substance Abuse

(1)

Inclusion of housing counseling and financial counseling in State plan for comprehensive community-based mental health systems

The second sentence of section 1912(b)(1) of the Public Health Service Act (42 U.S.C. 300x–2(b)(1)) is amended— (A)by inserting housing counseling (as defined in section 1919(4)), financial counseling (as defined in section 1919(5), after medical and dental care,; and (B)by inserting , including individuals who are released from inpatient or residential institutions, after support services to be provided to individuals. (2)

Reports on housing counseling and financial counseling provided

Section 1942(a) of such Act (42 U.S.C. 300x–52(a)) is amended— (A)in paragraph (1), at the end by striking at the end and; (B)in paragraph (2), at the end by striking the period and inserting ; and; and (C)by adding at the end the following new paragraph: (3)with respect to a grant under section 1911, the number of individuals in the State who were transitioned out of inpatient or residential institutions for individuals with mental illness, the housing counseling and financial counseling furnished to such individuals for purposes of such transition into the community, and the number of such individuals who returned to such an institution after being released from such institution and the reasons for such return. . (c)

Reports by Secretary of Housing and Urban Development and Secretary of Health and Human Services

(1)Not later than 6 months after the date of the enactment of this Act, the Secretary of Housing and Urban Development and the Secretary of Health and Human Services shall each submit to the Congress a report describing the projected use of funds received under the applicable block grant program referred to in section 4(a) for fiscal year 2010 to provide housing counseling and financial counseling (as such terms are defined in paragraphs (4) and (5) of section 1919 of the Public Health Service Act (42 U.S.C. 300x–8), as added by section 3) for individuals before their release from inpatient or residential institutions for individuals with mental illness and biannual evaluations of the appropriateness of such counseling provided for such individuals following such release. (2)Not later than September 30, 2011, and annually thereafter, the Secretary of Housing and Urban Development and the Secretary of Health and Human Services shall each submit to the Congress a report describing the actual use of amounts received under the applicable block grant program referred to in section 4(a) for the previous 12-month period to provide the housing counseling, financial counseling, and biannual evaluation described in paragraph (1). Each such report shall include— (A)an analysis of the feasibility and desirability of requiring, as a condition of receipt of funds under the applicable block grant program, that each State and unit of general local government either have a program providing for such housing counseling, financial counseling, and biannual evaluation or for the development of a prerelease housing plan; (B)an analysis of the feasibility and desirability of requiring States and units of general local government to reserve for such purpose a certain portion or amount of the funds received under such block grant program; and (C)any recommendations of the applicable Secretary for legislative changes in such block grant program. (d)

Effective date

The amendments made by subsections (a) and (b) shall apply to grants made for periods beginning on or after October 1, 2010.