[Congressional Record Volume 144, Number 19 (Tuesday, March 3, 1998)]
[House]
[Pages H703-H722]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]
HOMELESS HOUSING PROGRAMS CONSOLIDATION AND FLEXIBILITY ACT
Mr. LAZIO of New York. Mr. Speaker, I move to suspend the rules and
pass the bill (H.R. 217) to amend title IV of the Stewart B. McKinney
Homeless Assistance Act to consolidate the Federal programs for housing
assistance for the homeless into a block grant program that ensures
that States and communities are provided sufficient flexibility to use
assistance amounts effectively, as amended.
The Clerk read as follows:
H.R. 217
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 Housing Programs
Consolidation and Flexibility Act''.
SEC. 2. FINDINGS; PURPOSE.
(a) Findings.--The 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 a multitude of Federal Government programs to
assist the homeless, including programs for elderly persons,
persons with disabilities, Native Americans, and veterans;
(4) many of the Federal programs for the homeless have
overlapping objectives, resulting in multiple sources of
Federal funding for the same or similar purposes;
(5) while the results of Federal programs to assist the
homeless generally have been positive, it is clear that there
is a need for consolidation and simplification of such
programs to better support local efforts;
(6) increasing resources available to reduce homelessness
are utilized in the development of services rather than the
creation of housing;
(7) housing programs must be evaluated on the basis of
their effectiveness in reducing homelessness, transitioning
individuals to permanent housing and self-sufficiency, and
creating an adequate plan to discharge homeless persons to
and from mainstream service systems;
(8) effective homelessness treatment should provide a
comprehensive housing system (including transitional and
permanent housing) and, while not all homeless individuals
and families attain self-sufficiency and independence by
utilizing transitional housing and then permanent housing, in
many cases such individuals and families are best able to
reenter society directly through permanent, supportive
housing;
(9) supportive housing activities support homeless persons
in an environment that can meet their short-term or long-term
needs and prepare them to reenter society as appropriate;
(10) homelessness should be treated as part of a symptom of
many neighborhood and community problems, whose remedies
require a holistic approach integrating all available
resources;
(11) there are many private sector entities, particularly
nonprofit organizations, that have successfully operated
homeless programs;
(12) government restrictions and regulations may discourage
and impede innovative approaches to homelessness, such as
coordination of the various types of assistance that are
required by homeless persons; and
(13) the Federal Government has a responsibility to
establish partnerships with State and local governments and
the private sector to address comprehensively the problems of
homelessness.
(b) Purpose.--It is the purpose of this Act--
(1) to consolidate the existing housing programs for
homeless persons under title IV of the Stewart B. McKinney
Homeless Assistance Act into a single block grant program for
housing assistance for the homeless;
(2) to allow flexibility and creativity in rethinking
solutions to homelessness, including alternative housing
strategies and an improved service sector;
(3) to provide Federal assistance to reduce homelessness on
a basis that requires recipients of such assistance to
supplement the federally provided amounts and thereby
guarantee the provision of a certain level of housing and
complementary services necessary to meet the needs of the
homeless population; and
[[Page H704]]
(4) to ensure that multiple Federal agencies are involved
in the provision of housing, human services, employment, and
education assistance both through the funding provided for
implementation of the Stewart B. McKinney Homeless Assistance
Act and mainstream funding and to encourage entrepreneurial
approaches in the provision of housing for homeless people.
SEC. 3. GENERAL PROVISIONS.
Title I of the Stewart B. McKinney Homeless Assistance Act
(42 U.S.C. 11301 et seq.) is amended--
(1) by striking section 102;
(2) in section 103--
(A) in subsection (a), by striking ``the term `homeless' or
`homeless individual or homeless person' includes'' and
inserting ``the terms `homeless', `individual', and `homeless
person' include''; and
(B) in subsection (c), by striking ``the term `homeless' or
`homeless individual' does not include'' and inserting ``the
terms `homeless', `individual', and `homeless person' do not
include''; and
(3) by redesignating sections 103, 104, and 105 as sections
102, 103, and 104, respectively.
SEC. 4. FEDERAL EMERGENCY MANAGEMENT AGENCY FOOD AND SHELTER
PROGRAM.
Section 322 of the Stewart B. McKinney Homeless Assistance
Act (42 U.S.C. 11352) is amended to read as follows:
``SEC. 322. AUTHORIZATION OF APPROPRIATIONS.
``There are authorized to be appropriated to carry out this
title such sums as may be necessary for each of fiscal years
1998, 1999, 2000, 2001, and 2002.''.
SEC. 5. PERMANENT HOUSING DEVELOPMENT AND FLEXIBLE BLOCK
GRANT HOMELESS ASSISTANCE PROGRAM.
(a) In General.--Title IV of the Stewart B. McKinney
Homeless Assistance Act (42 U.S.C. 11361 et seq.) is amended
to read as follows:
``TITLE IV--PERMANENT HOUSING DEVELOPMENT AND FLEXIBLE BLOCK GRANT
HOMELESS ASSISTANCE PROGRAM
``Subtitle A--General Provisions
``SEC. 401. PURPOSE; PERFORMANCE MEASURES.
``(a) Purpose.--The purpose of the program under this title
is to provide assistance for permanent housing development
for homeless persons and promote the development of a
comprehensive housing system that transitions homeless
persons to live as independently as possible, including
assistance in the form of permanent housing development,
supportive housing, emergency shelters, supportive services,
and activities to prevent homelessness.
``(b) Performance Measures.--Consistent with the purposes
and requirements of the Government Performance and Results
Act of 1993, the programs under this title and the
implementation of such programs by the Department of Housing
and Urban Development shall comply with the following
performance goals:
``(1) The Federal Government shall ensure an effective
grant allocation process and sound financial management of
the process. Such grant allocation process shall be
implemented to ensure that--
``(A) local governments shall work with the appropriate
Local Board to create innovative plans sufficient to address
the needs of homeless people in their community; and
``(B) all eligible communities receive funds to address the
needs of homeless people in such communities through local
governments or private nonprofit organizations.
``(2) The financial resources provided under this title
shall be used effectively to create more low-cost permanent
housing and to transition homeless people to self-sufficiency
and permanent housing.
``(3) The Federal Government shall use the Interagency
Council on the Homeless as a vehicle to coordinate services,
programs, and funds to promote the transition of homeless
people to self-sufficiency in permanent housing.
``SEC. 402. GRANT AUTHORITY.
``(a) In General.--The Secretary may make grants as
provided under this title to eligible grantees for States,
metropolitan cities, urban counties, and insular areas for
carrying out eligible activities under subtitles B and C.
``(b) Grant Amounts.--Except as otherwise provided under
this title, amounts for a fiscal year allocated under section
406 shall be used as follows:
``(1) Insular areas.--Any amounts for the fiscal year
allocated under section 406(a) for an insular area shall be
used for a grant to the eligible grantee for the insular area
for such fiscal year.
``(2) Permanent housing development.--Any amounts allocated
under section 406(b) for use under subtitle B shall be used
for grants under section 406(b)(2) to States, metropolitan
cities, and urban counties for such fiscal year.
``(3) Flexible block grant homeless assistance.--Any
amounts allocated under section 406(c) for a State,
metropolitan city, or urban county, shall be used for a grant
under section 406(c) to the eligible grantee for the State,
metropolitan city, or urban county, for the fiscal year.
``(c) Use for Eligible Activities.--Grant amounts provided
under this title and any supplemental funds provided under
section 407 may be used only as follows:
``(1) Insular area grants.--In the case of a grant under
subsection (b)(1) for an insular area, for eligible
activities under subtitle C benefiting the insular area.
``(2) Permanent housing development grants.--In the case of
a grant under subsection (b)(2) to a State, metropolitan
city, or urban county, for eligible activities under subtitle
B within the State, metropolitan city, or urban county,
respectively.
``(3) Flexible block grant homeless assistance.--In the
case of a grant under subsection (b)(3) for a State,
metropolitan city, or urban county, for eligible activities
under subtitle C benefiting the State, metropolitan city, or
urban county, and carried out only within non entitlement
areas of the State, metropolitan city, or county, as
applicable.
``SEC. 403. ELIGIBLE GRANTEES.
``For purposes of this title, the term `eligible grantee'
has the following meaning:
``(1) Grants for insular areas.--In the case of a grant
from amounts allocated under section 406(a) for an insular
area, such term means--
``(A) the insular area, or an agency, office, or other
entity of the area; or
``(B) to the extent that an entity that is a private
nonprofit organization is authorized by the government of the
insular area to act as the grantee for the area for purposes
of this title, such private nonprofit entity.
``(2) Grants for permanent housing development and flexible
assistance.--In the case of a grant from amounts allocated
under section 406(b) or section 406(c) for a State,
metropolitan city, or urban county, such term means--
``(A) the State, metropolitan city, or urban county,
respectively, or an agency, office, or other entity of the
State, city, or county, respectively; and
``(B) to the extent that a private nonprofit organization
is authorized by the government of the State, metropolitan
city, county to act as the grantee for the State,
metropolitan city, or county, respectively, for purposes of
this title, such private nonprofit organization.
``SEC. 404. USE OF PROJECT SPONSORS.
``(a) Transfer of Grant Amounts by Grantees.--Eligible
activities assisted with grant amounts provided under this
title may be carried out directly by the grantee or by other
entities serving as project sponsors which are provided such
grant amounts by the grantee or a subgrantee of the grantee.
``(b) Competitive Selection Criteria.--To the extent that a
grantee does not use grant amounts for eligible activities
carried out directly by the grantee, the grantee shall select
eligible activities for assistance and project sponsors to
carry out such eligible activities pursuant to a competition
based on criteria established by the Secretary, which shall
include--
``(1) whether the project sponsor that will carry out the
activity is financially responsible;
``(2) the ability of the project sponsor to carry out the
eligible activity and the project sponsor's experience in
successfully transitioning homeless persons into stable,
long-term housing;
``(3) the need for the type of eligible activity in the
area to be served;
``(4) the extent to which the amount of assistance to be
provided with grant amounts will be supplemented with
resources from other public and private sources;
``(5) the cost-effectiveness of the proposed eligible
activity, considered in relation to the ultimate goal of
moving people out of homelessness permanently, including
consideration of high-cost area services, and other necessary
amenities;
``(6) the extent to which the project sponsor carrying out
the eligible activity--
``(A) will coordinate with Federal, State, local, and
private entities serving homeless persons in the development
of a comprehensive housing system and in the planning and
operation of the activity; and
``(B) will, pursuant to section 408(m)(3), carry out the
activity in coordination and conjunction with federally
funded activities for the homeless;
``(7) the extent to which the project sponsor employs
homeless persons or involves homeless persons or formerly
homeless persons in the operation and design of its programs;
and
``(8) such other factors as the Secretary determines to be
appropriate to carry out this title in an effective and
efficient manner.
``SEC. 405. COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY
COMPLIANCE.
``A grant under this title may be provided to an eligible
grantee only if--
``(1) the applicable jurisdiction for which the grant
amounts are allocated under section 406 has submitted to the
Secretary a comprehensive housing affordability strategy in
accordance with section 105 of the Cranston-Gonzalez National
Affordable Housing Act and any other requirement established
by the Secretary and which is in effect for the fiscal year
for which such grant amounts are to be provided; and
``(2) the public official of such applicable jurisdiction
who is responsible for submitting the comprehensive housing
affordability strategy required by paragraph (1) certifies to
the Secretary that the eligible activities to be assisted
with such grant amounts are or will be consistent with such
comprehensive housing affordability strategy, including the
plans in such strategy for addressing housing needs for
homeless families.
``SEC. 406. ALLOCATION AND AVAILABILITY OF AMOUNTS.
``(a) Allocation for Insular Areas.--Of the amount made
available for grants under this title for a fiscal year, the
Secretary
[[Page H705]]
shall reserve for grants for each of the insular areas
amounts in accordance with an allocation formula established
by the Secretary.
``(b) Allocation for Permanent Housing Development Grants
Under Subtitle B.--
``(1) Annual portion of appropriated amount available.--Of
the amount made available for grants under this title for a
fiscal year that remains after amounts are reserved under
subsection (a), the Secretary shall allocate for use under
subtitle B, 30 percent of such funds (except that for fiscal
years 1998 and 1999, the Secretary shall allocate 25 percent
of such funds for use under such subtitle).
``(2) Grants.--Using the amounts allocated for use under
subtitle B for a fiscal year, the Secretary shall make grants
to States, metropolitan cities, and urban counties pursuant
to a national competition based on the criteria specified in
section 404(b) and in accordance with such other factors and
procedures as the Secretary determines to be appropriate to
carry out this title in an effective and efficient manner.
``(3) Limitation.--In making grants using amounts allocated
for use under subtitle B for any fiscal year, the Secretary
shall ensure that not more than 35 percent of the total
amount allocated for such use for such fiscal year is used
for activities under section 441 of this Act, as in effect on
October 31, 1997.
``(c) Allocation for Flexible Block Grant Homeless
Assistance Under Subtitle C.--
``(1) Annual portion of appropriated amount available for
subtitle c activities.--Of the amount made available for
grants under this title for a fiscal year that remains after
amounts are reserved under subsection (a), the Secretary
shall allocate for use under subtitle C 70 percent of such
funds (except that for fiscal years 1998 and 1999, the
Secretary shall allocate 75 percent of such funds for use
under such subtitle).
``(2) Allocation of amount available between metropolitan
cities and urban counties and states.--Of the amount
allocated pursuant to paragraph (1) for use under subtitle C
for a fiscal year, 70 percent shall be allocated for
metropolitan cities and urban counties and 30 percent shall
be allocated for States.
``(3) Interim determination of allocated amount.--Except as
provided in paragraph (4), the Secretary shall allocate
amounts available for use under subtitle C for a fiscal year
so that--
``(A) for each metropolitan city and urban county, the
percentage of the total amount allocated under this
subsection for cities and counties that is allocated for such
city or county is equal to the percentage of the total amount
available for the preceding fiscal year under section 106(b)
of the Housing and Community Development Act of 1974 for
grants to metropolitan cities and urban counties that was
allocated for such city or county; and
``(B) for each State, the percentage of the total amount
allocated under this subsection for States that is allocated
for such State is equal to the percentage of the total amount
available for the preceding fiscal year under section 106(d)
of the Housing and Community Development Act of 1974 for
grants to States that was allocated for such State.
``(4) Minimum appropriation requirement.--If, by December 1
of any fiscal year, the amount appropriated for grants under
this title for such fiscal year is less than $750,000,000--
``(A) the Secretary shall not allocate amounts for such
fiscal year under subsection (b) and this subsection;
``(B) subsection (d) shall not apply to amounts for such
fiscal year; and
``(C) notwithstanding any other provision of this title,
the Secretary shall make grants under this title from such
amounts to States, units of general local government, and
private nonprofit organizations, pursuant to a national
competition based on the criteria specified in section
404(b).
``(5) Study; submission of information to congress related
to alternative methods of allocation.--Not later than 1 year
after the date of the enactment of the Homeless Housing
Program Consolidation and Flexibility Act, the Secretary
shall--
``(A) submit to Congress--
``(i) the best available methodology for determining a
formula relative to the geographic allocation of funds under
this subtitle among entitlement communities and
nonentitlement areas based on the incidence of homelessness
and factors that lead to homelessness;
``(ii) proposed alternatives to the formula submitted
pursuant to clause (i) for allocating funds under this
section, including an evaluation and recommendation on a 75/
25 percent and other allocations of flexible block grant
homeless assistance between metropolitan cities and urban
counties and States under paragraph (2);
``(iii) an analysis of the deficiencies in the current
allocation formula described in section 106(b) of the Housing
and Community Development Act of 1974;
``(iv) an analysis of the adequacy of current indices used
as proxies for measuring homelessness; and
``(v) an analysis of the bases underlying each of the
proposed allocation methods;
``(B) perform the duties required by this paragraph in
ongoing consultation with--
``(i) the Subcommittee on Housing Opportunity and Community
Development of the Committee on Banking, Housing, and Urban
Affairs of the Senate;
``(ii) the Subcommittee on Housing and Community
Opportunity of the Committee on Banking and Financial
Services of the House of Representatives;
``(iii) organizations representing States, metropolitan
cities and urban counties;
``(iv) organizations representing rural communities;
``(v) organizations representing veterans;
``(vi) organizations representing persons with
disabilities;
``(vii) members of the academic community; and
``(viii) national homelessness advocacy groups; and
``(C) estimate the amount of funds that will be received
annually by each entitlement community and nonentitlement
area under each such alternative allocation system and
compare such amounts to the amount of funds received by each
entitlement community and nonentitlement area in prior years
under this section.
``(6) Minimum allocations amounts.--
``(A) In general.--
``(i) Metropolitan cities and urban counties.--
Notwithstanding paragraph (3), if for any fiscal year, the
allocation under subtitle C for a metropolitan city or urban
county is less than 0.05 percent of the amounts available for
such use, such metropolitan city or urban county shall not
receive a grant and its allocation shall be added to the
allocation for the State in which such metropolitan city or
urban county is located, except that any such metropolitan
city or urban county that received a grant under this title
in a previous fiscal year shall be allocated an amount equal
to 0.05 percent of the amounts appropriated for such use.
``(ii) States.--Notwithstanding paragraph (3), if in any
fiscal year the allocation under subtitle C for a State is
less than $2,000,000, the allocation for that State shall be
increased to $2,000,000 and the increase shall be provided by
deducting pro rata amounts from the allocations under such
subtitle of States with allocations of more than $2,000,000.
``(B) Graduated minimum grant allocations.--Notwithstanding
subparagraph (A) of this paragraph and notwithstanding
paragraph (3), a State, metropolitan city, or urban county
shall receive no less funding under this subsection in the
first full fiscal year after the date of the enactment of the
Homeless Housing Programs Consolidation and Flexibility Act
than 90 percent of the average of the amounts awarded
annually to that jurisdiction for homeless assistance
programs administered by the Secretary (not including
allocations for shelter plus care and single room occupancy
programs as defined in, and in effect pursuant to, this Act
prior to the date of the enactment of the Homeless Housing
Programs Consolidation and Flexibility Act) under this title
during fiscal years 1994 through 1997, no less than 85
percent in the second full fiscal year after the date of the
enactment of the Homeless Housing Programs Consolidation and
Flexibility Act, no less than 80 percent in the third and
fourth full fiscal years after the date of the enactment of
the Homeless Housing Programs Consolidation and Flexibility
Act, and no less than 75 percent in the fifth full fiscal
year after the date of the enactment of the Homeless Housing
Programs Consolidation and Flexibility Act, but only if the
amount appropriated pursuant to section 435 in each such
fiscal year exceeds $800,000,000. If that amount does not
exceed $800,000,000 in any fiscal year referred to in the
first sentence of this paragraph, the jurisdiction may
receive its proportionate share of the amount appropriated
which may be less than the amount stated in such sentence for
such fiscal year.
``(7) Reduction.--Notwithstanding paragraphs (1) through
(6), in any fiscal year, the Secretary may provide a grant
under this subsection for a State, metropolitan city, or
urban county, in an amount less than the amount allocated
under those paragraphs, if the Secretary determines that the
jurisdiction has failed to comply with requirements of this
title, or that such action is otherwise appropriate.
``(d) Recapture of Allocated Amounts.--The Secretary shall
recapture the following amounts:
``(1) Unused amounts.--Not less than once during each
fiscal year, the Secretary shall recapture any amounts
allocated under this section that--
``(A) are allocated for a State, metropolitan city or urban
county, or insular area, but not provided to an eligible
grantee for the jurisdiction because of failure to apply for
a grant under this title or failure to comply with the
requirements of this title;
``(B) were provided to a grantee and (i) recaptured under
this title, or (ii) not utilized by the grantee in accordance
with the purposes and objectives of the approved application
of the grantee within a reasonable time period, which the
Secretary shall establish; or
``(C) are returned to the Secretary by the time of such
reallocation.
``(2) Amounts allocated to grantees that fail to comply
with comprehensive housing affordability strategy
requirements.--Notwithstanding paragraph (1), if, for any
fiscal year, a metropolitan city or urban county fails to
comply with the requirement under section 405(1) during the
90-day period beginning on the date that amounts for grants
under this title for such
[[Page H706]]
fiscal year first become available for allocation, the
amounts that would have been allocated under subsection (c)
of this section for such city or county shall be reallocated
for the State in which the unit is located, but only if the
State has complied with the requirement under section 405(1).
Any amounts that cannot be allocated for a State under the
preceding sentence shall be reallocated for other
metropolitan cities and urban counties and States that comply
with such requirement and demonstrate extraordinary need or
large numbers of homeless persons, as determined by the
Secretary.
``(e) Reallocation of Amounts.--Any amounts allocated under
subsection (b) that are recaptured pursuant to subsection
(d)(1) shall be reallocated only for use under subtitle B.
Any amounts allocated under subsection (c) that are
recaptured pursuant to subsection (d)(1) shall be reallocated
only for use under subtitle C.
``SEC. 407. MATCHING FUNDS REQUIREMENT.
``(a) In General.--Each State, metropolitan city or urban
county, and insular area for which a grant under this title
is made shall supplement the amount of the grant provided
under this title with an amount that is not less than--
``(1) 50 percent of the amount of such grant, if the State,
metropolitan city or urban county, and insular area has
indicated in its application for such grant that it will not
include as a portion of its supplementation the cost or value
of donated services; or
``(2) 100 percent of the grant amount, if the State,
metropolitan city, urban county, or insular area indicated in
its application for such grant that it will include as a
portion of its supplementation the cost or value of donated
services.
``(b) Matching Requirement for Use of More Than 35 Percent
of Funds for Supportive Services.--In addition to the
supplemental funds required pursuant to subsection (a), for
the second full fiscal year after the date of the enactment
of the Homeless Housing Programs Consolidation and
Flexibility Act and each fiscal year thereafter, a State,
metropolitan city, or urban county shall supplement the grant
funds for the State, metropolitan city, or urban county in an
amount equal to the amount used by that State, metropolitan
city, or urban county for supportive services in a fiscal
year that exceeds 35 percent of the total grant amount for
the State, metropolitan city, or urban county for that fiscal
year.
``(c) Treatment of Independent State or Local Government
Funds.--Any State or local government funds used
independently from the program under this title, or
designated for such use, to assist the homeless by carrying
out activities that would be eligible for assistance under
this subtitle may be counted toward the amount required
pursuant to subsection (a).
``(d) Authority for Grantees To Require Supplementation.--
``(1) In general.--Each grantee under this title may
require any subgrantee or project sponsor to whom it provides
such grant amounts to provide supplemental amounts required
under subsections (a) and (b) with an amount of funds from
sources other than this title.
``(2) Amount allowed to be required by grantee.--
``(A) Grant amount.--Except as provided in paragraph (3), a
grantee may not require any subgrantee or project sponsor to
whom it provides such grant amounts under this title to
provide--
``(i) supplemental amounts required under subsection (a)(1)
in an amount exceeding 25 percent of the grant amount
provided to the subgrantee or project sponsor; or
``(ii) supplemental amounts required under subsection
(a)(2) in an amount exceeding 50 percent of the grant amount
provided to the subgrantee or project sponsor.
``(B) Supportive services.--A grantee may require any
subgrantee or project sponsor to whom it provides grant
amounts under this title to provide supplemental amounts
required under subsection (b) in an amount equal to the
amount used by subgrantee or project sponsor for supportive
services in a fiscal year that exceeds 35 percent of the
total amount allocated pursuant to this subsection for that
fiscal year.
``(3) Supplemental funds may be considered as matching
funds.--Supplemental amounts provided by a subgrantee or
project sponsor pursuant to this subsection may be considered
supplemental amounts for purposes of compliance by any
grantee with the requirement under subsections (a) and (b).
``(e) Use of Funds.--Any supplemental funds made available
in compliance with this section shall be available only to
carry out eligible activities (1) under subtitle B, if the
grant amounts are available only for such activities, or (2)
under subtitle C, if the grant amounts are available only for
such activities.
``(f) Supplemental Funds.--In determining the amount of
supplemental funds provided in accordance with this section,
the following amounts may be included:
``(1) Cash.
``(2) The value of any donated or purchased material or
building.
``(3) The value of any lease on a building.
``(4) The proceeds from bond financing validly issued by a
State or unit of general local government, agency, or
instrumentality thereof, and repayable with revenues derived
from the activity assisted under this title.
``(5) The amount of any salary paid to staff to carry out a
program for eligible activities under subtitle B or C.
``(6) The cost or value of any donated goods.
``(7) The value of taxes, fees, or other charges that are
normally and customarily imposed, but which are waived or
foregone to assist in providing housing or services for the
homeless.
``(8) The cost of on-site and off-site infrastructure that
is directly related to and necessary for providing housing or
services for the homeless.
``(9) The cost or value of any donated services, but only
if the State, metropolitan city, urban county, or insular
area has stated in its application for a grant under this
title that it shall supplement the amount of such grant, in
accordance with section 407(a)(2).
``(g) Reduction in Matching Requirements.--If a
jurisdiction certifies to the Secretary that it is in fiscal
distress (as defined in section 220(d)(2) of the Cranston-
Gonzalez National Affordable Housing Act) for a fiscal year,
the Secretary shall apply the matching requirement under
subsection (a) to such jurisdiction for such fiscal year by
reducing such percentage under subsection (a) to the same
extent, in the same manner, and according to the same
criteria as matching requirements are reduced under section
220(d) of the Cranston-Gonzalez National Affordable Housing
Act.
``SEC. 408. PROGRAM REQUIREMENTS.
``(a) Applications.--
``(1) Form and procedure.--The Secretary shall make a grant
under this title only pursuant to an application for a grant
submitted by an eligible grantee in the form required by this
section and in accordance with such other factors and
procedures as the Secretary determines to be appropriate. The
Secretary may not give preference or priority to any
application on the basis that the application was submitted
by any particular type of eligible grantee.
``(2) Contents.--The Secretary shall require that
applications contain at a minimum the following information:
``(A) Grants for permanent housing development
activities.--In the case of an application for a grant
available for use for activities under subtitle B or an
application for a grant available for use under subtitle C
for permanent housing development assistance--
``(i) a description of the permanent housing development
activities to be assisted;
``(ii) a description of the entities that will carry out
such activities and the programs for carrying out such
activities; and
``(iii) assurances satisfactory to the Secretary that the
facility will comply with the requirement under subsection
(j).
``(B) Flexible block grant homeless assistance.--In the
case of an application for a grant available for use for
activities under subtitle C--
``(i) a description of the eligible activities to be
assisted, to the extent available at the time;
``(ii) in the case of a grant for a facility assisted under
paragraph (1) or (2) of section 421(a), assurances
satisfactory to the Secretary that the facility will comply
with the requirement under subsection (j);
``(iii) in the case of a grant for a supportive housing
facility assisted under this title that does not receive
assistance under paragraph (1) or (2) of section 421(a),
annual assurances during the period specified in the
application that the facility will be operated for the
purpose specified in the application for such period; and
``(iv) in the case of a grant for a supportive housing
facility, reasonable assurances that the project sponsor will
own or have control of a site not later than the expiration
of the 12-month period beginning upon notification of an
award of grant assistance, unless the application proposes
providing supportive housing assisted under section 421(a)(3)
or housing that will eventually be owned or controlled by the
families and individuals served; except that a project
sponsor may obtain ownership or control of a suitable site
different from the site specified in the application.
``(C) All grants.--In the case of an application for any
grant under this title--
``(i) a description of the size and characteristics of the
population, including specific references to populations with
special needs, that will be served by the eligible activities
assisted with grant amounts;
``(ii) a description of the public and private resources
that are expected to be made available in connection with
grant amounts provided;
``(iii) a description of the process to be used in
compliance with section 404(b) to select eligible activities
to be assisted and project sponsors;
``(iv) a certification that the applicant will comply with
the requirements of the Fair Housing Act, title VI of the
Civil Rights Act of 1964, section 504 of the Rehabilitation
Act of 1973, and the Age Discrimination Act of 1975, and will
affirmatively further fair housing; and
``(v) a statement of whether the applicant will or will not
include, as a portion of its supplementation amount required
under section 407(a), the cost or value of donated services.
``(b) Required Agreements.--The Secretary may not provide a
grant under this title for any applicant unless the applicant
agrees--
``(1) to ensure that the eligible activities carried out
with grant amounts will be carried out in accordance with the
provisions of this title;
[[Page H707]]
``(2) to conduct an ongoing assessment of the supportive
services required by homeless persons assisted by the
eligible activities and the availability of such services to
such persons;
``(3) in the case of grant amounts to be used under
subtitle C for a supportive housing facility or an emergency
shelter, to ensure the provision of such residential
supervision as the Secretary determines is necessary to
facilitate the adequate provision of supportive services to
the residents and users of the facility or shelter;
``(4) to monitor and report under section 431 to the
Secretary on the progress of the eligible activities carried
out with grant amounts;
``(5) to develop and implement procedures to ensure--
``(A) the confidentiality of records pertaining to any
individual provided family violence prevention or treatment
services through any activities assisted with grant amounts;
and
``(B) that the address or location of any family violence
shelter facility assisted with grant amounts will not be made
public, except with written authorization of the person or
persons responsible for the operation of such facility;
``(6) to the maximum extent practicable, to involve
homeless persons and families, through employment, volunteer
services, or otherwise, in carrying out eligible activities
assisted with grant amounts; and
``(7) to comply with such other terms and conditions as the
Secretary may establish to carry out this title in an
effective and efficient manner.
``(c) Occupancy Charge.--Any homeless person or family
residing in a dwelling unit assisted under this title may be
required to pay an occupancy charge in an amount determined
by the grantee providing the assistance, which may not exceed
an amount equal to 30 percent of the adjusted income (as such
term is defined in section 3(b) of the United States Housing
Act of 1937 or any other subsequent provision of Federal law
defining such term for purposes of eligibility for, or rental
charges in, public housing) of the person or family.
Occupancy charges paid may be reserved, in whole or in part,
to assist residents in moving to permanent housing.
``(d) Flood Protection Standards.--Flood protection
standards applicable to housing acquired, rehabilitated,
constructed, or assisted with grant amounts provided under
this title shall be no more restrictive than the standards
applicable under Executive Order No. 11988 (42 U.S.C. 4321
note; relating to floodplain management) to the other
programs in effect under this title immediately before the
enactment of the Homeless Housing Programs Consolidation and
Flexibility Act.
``(e) Participation of Citizens and Others.
``(1) In general.--Each grantee shall--
``(A) each fiscal year, make available to its citizens,
public agencies, and other interested parties information
concerning the amount of assistance the jurisdiction expects
to receive and the range of activities that may be undertaken
with the assistance;
``(B) publish the proposed application in a manner that, in
the determination of the Secretary, affords affected
citizens, public agencies, and other interested parties a
reasonable opportunity to examine its content and to submit
comments on it;
``(C) each fiscal year, hold one or more public hearings to
obtain the views of citizens, public agencies, and other
interested parties on the housing needs of the jurisdiction;
and
``(D) provide citizens, public agencies, and other
interested parties with reasonable access to records
regarding any uses of any assistance the grantee may have
received under this subtitle during the preceding 5 years.
``(2) Electronic access.--A grantee may comply with the
requirement under subparagraphs (A), (B), and (D) of
paragraph (1) by making the information available through
interactive computer or telephone services or other
electronic information networks and systems appropriate for
making such information widely available to the public.
``(3) Notice and comment.--Before submitting any
substantial amendment to an application under this Act, a
grantee shall provide citizens with reasonable notice of, and
opportunity to comment on, the amendment.
``(4) Consideration of comments.--A grantee shall consider
any comments or views of citizens in preparing a final
application or amendment to an application for submission. A
summary of such comments or views shall be attached when an
application or amendment to an application is submitted. The
submitted application or amendment shall be made available to
the public.
``(5) Authority of secretary.--The Secretary shall
establish procedures appropriate and practicable for
providing a fair hearing and timely resolution of citizen
complaints related to applications under this subtitle.
``(6) Homeless individuals.--The Secretary shall, by
regulation, require each grantee to ensure that each project
sponsor assisted by the grantee provides for the
participation of not less than 1 homeless person or former
homeless person on the board of directors or other equivalent
policymaking entity of the project sponsor, to the extent
that such sponsor considers and makes policies and decisions
regarding any activity, facility, supportive services, or
assistance provided with grant amounts under this title. The
Secretary shall provide that a grantee may grant waivers to
project sponsors unable to meet the requirement under the
preceding sentence if the sponsor agrees to otherwise consult
with homeless or formerly homeless persons in considering and
making such policies and decisions.
``(f) Limitation on Use of Funds.--No grant amounts
received under this title (or any funds provided under
section 407 or otherwise to supplement such grants) may be
used to replace other State or local funds previously used,
or designated for use, to assist homeless persons.
``(g) Limitation on Administrative Expenses.--
Notwithstanding any other provision of this title, of any
grant amounts under this title used to carry out eligible
activities, the grantee or the project sponsor may use for
administrative purposes--
``(1) an amount not exceeding 5 percent of such grant
amount; or
``(2) if the grantee implements use of a standardized
homeless database management system to record and assess data
on the usage of homeless housing, services, and client needs,
and on the number of and other information related to
populations with special needs, an amount not exceeding 7.5
percent of such grant amount.
``(h) Housing Quality.--
``(1) Requirement.--Assistance may not be provided with
grant amounts made available for use under this title for any
permanent housing development, dwelling unit, supportive
housing facility, or emergency shelter that fails to comply
with the housing quality standards applicable under paragraph
(2) in the jurisdiction in which the housing is located,
unless the deficiency is promptly corrected and the project
sponsor verifies the correction.
``(2) Applicable standards.--The housing quality standards
applicable under this subsection to any permanent housing,
dwelling unit, supportive housing facility, or emergency
shelter shall be--
``(A) in the case of permanent housing, a unit, facility,
or shelter located in a jurisdiction which has in effect
laws, regulations, standards, or codes regarding habitability
of such housing, units, facilities, or shelters that provide
protection to residents of the dwellings that is equal to or
greater than the protection provided under the housing
quality standards established under paragraph (3), such
applicable laws, regulations, standards, or codes; or
``(B) in the case of permanent housing, a unit, facility,
or shelter located in a jurisdiction which does not have in
effect laws, regulations, standards, or codes described in
subparagraph (A), the housing quality standards established
under paragraph (3).
``(3) Federal housing quality standards.--The Secretary
shall establish housing quality standards under this
paragraph that ensure that permanent housing, dwelling units,
supportive housing facilities, and emergency shelters
assisted under this title are safe, clean, and healthy. Such
standards shall include requirements relating to
habitability, including maintenance, health and sanitation
factors, condition, and construction of dwellings. The
Secretary shall differentiate between major and minor
violations of such standards and may establish separate
standards for permanent housing, dwelling units, supportive
housing facilities, and emergency shelters.
``(i) Termination of Assistance.--If a person or family
(not including residents of an emergency shelter) who
receives assistance under this title violates program
requirements, the project sponsor may terminate assistance in
accordance with a formal process established by such sponsor
that recognizes the rights of individuals receiving such
assistance to due process of law, which may include a
hearing.
``(j) Use Restrictions.--
``(1) Acquisition, rehabilitation, and new construction.--
``(A) In general.--Except as provided in subparagraph (B),
each housing facility assisted under subtitle B or subtitle C
shall be operated as housing for the purpose specified in the
application for assistance with amounts under this title for
not less than 20 years after such facility is initially
placed in service pursuant to such assistance.
``(B) Exceptions.--
``(i) Inability to operate facility.--If, within such 20-
year period, the need for maintaining the facility as housing
for the purpose specified in the application for assistance
ceases to exist (as determined by the Secretary pursuant to a
recommendation by the chief executive officer of the
appropriate unit of general local government or project
sponsor, taking into consideration the comprehensive housing
affordability strategy of the jurisdiction), or the project
sponsor is unable to operate the facility as supportive
housing, the facility may be used as affordable housing (in
accordance with section 215 of the Cranston-Gonzalez National
Affordable Housing Act).
``(ii) Applicability of other program restriction.--If the
housing facility receives assistance under any other Federal
program (including assistance under section 42 of the
Internal Revenue Code of 1986) for low-income families,
homeless persons, or any other use consistent with assistance
under this title, and the use restriction under such program
is less than 20 years, the restriction under such program
shall apply.
``(2) Other assistance.--Each housing facility assisted
under subtitle C shall be operated for the purposes specified
in the application for assistance with amounts under
[[Page H708]]
this title for the duration of the period covered by the
grant.
``(3) Conversion.--Notwithstanding paragraphs (1) and (2),
if the Secretary determines that a housing facility is no
longer needed for use as housing for the purposes specified
in the application for assistance and approves the use of the
facility for the direct benefit of low-income persons
pursuant to a request for such use by the project sponsor,
the Secretary may authorize the sponsor to convert the
facility to such use.
``(k) Repayment of Assistance and Prevention of Undue
Benefits.--
``(1) Repayment.--If a facility assisted under subtitle B
or subtitle C violates the requirement under subsection
(j)(1)(A) or (j)(1)(B)(ii) of this section during the 10-year
period beginning upon placement of the facility in service
pursuant to such assistance, the Secretary shall require the
grantee to repay to the Secretary 100 percent of any grant
amounts received for such facility under such paragraph. If
such a facility violates such requirement after such 10-year
period, the Secretary shall require the grantee to repay the
percentage of any grant amounts received for such facility
that is equal to 100 percent minus 10 percent for each year
in excess of 10 that the facility is operated as supportive
housing.
``(2) Prevention of undue benefits.--Except as provided in
paragraph (3), upon any sale or other disposition of a
facility assisted under subtitle B or C occurring before the
expiration of the 20-year period beginning on the date that
the facility is placed in service, the project sponsor shall
comply with such terms and conditions as the Secretary may
prescribe to prevent the sponsor from unduly benefiting from
such sale or disposition.
``(3) Exception.--Paragraphs (1) and (2) shall not apply to
any sale or disposition of a facility that results in the use
of the facility for the direct benefit of very low-income
families if all of the proceeds are used to provide housing
meeting the requirements of subtitle B or C.
``(4) Failure to obtain site.--If a grantee of assistance
made available for use under this title obligates assistance
for a housing facility other than a facility under section
421(a)(3) or housing that will eventually be owned or
controlled by the families and individuals served, and the
project sponsor fails to obtain ownership or control of a
suitable site for a proposed supportive housing facility
during the 12-month period beginning upon the notification of
an award of grant assistance, the grantee shall recapture the
assistance and make such assistance available under this
subtitle.
``(l) Local Boards.--
``(1) Establishment and function.--The head of the
executive branch of government of each grantee shall
establish and appoint members to a local board, which shall
assist the jurisdiction in--
``(A) determining whether the grant should be administered
by the jurisdiction, a public agency, a private nonprofit
organization, the State, or the Secretary;
``(B) developing the application under section 408;
``(C) overseeing the activities carried out with assistance
under this title; and
``(D) preparing the performance report under section 431.
``(2) Composition of local boards.--
``(A) Nomination.--Members of a local board appointed to
meet the requirements of subparagraph (D) shall be nominated
by persons, other than governmental officials or entities,
that represent the groups listed in subparagraph (D).
``(B) Priority.--Persons who will improve access to a broad
range of services for homeless persons and who are sensitive
to the varying needs of homeless persons, including veterans,
the mentally ill, families with children, young persons,
battered spouses, victims of substance abuse, and persons
with AIDS, shall be given preference when selecting local
board members.
``(C) Community support considered.--In appointing members
to the local board, the chief executive of each grantee shall
consider the extent of support for the nominee in the
community which the board shall serve.
``(D) Majority.--Not less than 51 percent of the members of
a local board shall be composed of--
``(i) homeless or formerly homeless persons;
``(ii) persons who act as advocates for homeless persons;
and
``(iii) persons who provide assistance to homeless persons,
including representatives of local veterans organizations and
veteran service providers who assist homeless veterans.
``(E) Other local board members.--After the requirements of
subparagraph (D) are met, other members of a local board
shall be chosen from--
``(i) members of the business community of the jurisdiction
receiving the grant;
``(ii) members of neighborhood advocates in the
jurisdiction receiving the grant; and
``(iii) government officials of the jurisdiction receiving
the grant.
``(3) Waiver of requirements for local board.--The
Secretary may waive the requirements of this subsection if
the jurisdiction has an existing board that substantially
meets the requirements of this subsection.
``(m) Coordination of Homeless Programs.--
``(1) Purpose.--The purpose of the consultation and
coordination required under this subsection is to provide
various services, activities, and assistance for homeless
persons and families in an efficient, effective, and targeted
manner designed to meet the comprehensive needs of the
homeless.
``(2) In general.--The Chairperson of the Interagency
Council on the Homeless shall consult and coordinate with the
Secretary of Housing and Urban Development, the Secretary of
Health and Human Services, the Secretary of Labor, the
Secretary of Education, the Secretary of Veterans Affairs,
and the Secretary of Agriculture and shall ensure that
assistance for federally funded activities for the homeless
is made available, to the greatest extent practicable, in
conjunction and coordination with assistance for other
federally funded activities for the homeless and with
assistance under this title.
``(3) Requirements for housing assistance.--The Secretary
shall establish such requirements as the Secretary considers
necessary to ensure that grant amounts provided under this
title are used by grantees and project sponsors, to the
greatest extent practicable, in coordination and in
conjunction with federally funded activities for the
homeless.
``(4) Definition.--For purposes of this subsection, the
term `federally funded activities for the homeless' means
activities to assist homeless persons, including homeless
veterans, or homeless families that are funded (in whole or
in part) with amounts provided by the Federal Government
(other than amounts provided under this title) and includes--
``(A) the programs for health care under sections 340 and
part C of title V of the Public Health Service Act;
``(B) the programs for education, training and community
services under title VII of the Stewart B. McKinney Homeless
Assistance Act;
``(C) food assistance for homeless persons and families
through the food programs under the Food Stamp Act of 1977
and the Emergency Food Assistance Act of 1983;
``(D) the job training, housing, and medical programs for
homeless veterans of the Department of Veterans Affairs;
``(E) the job corps centers for homeless families program
under section 433A of the Job Training Partnership Act;
``(F) the program for preventive services for children of
homeless families or families at risk of homelessness under
title III of the Child Abuse Prevention and Treatment Act;
``(G) the programs under the Runaway and Homeless Youth
Act; and
``(H) assistance for homeless persons, including homeless
veterans, and families under State programs funded under
supplemental security income programs under part A of title
IV or under title XVI of the Social Security Act.
``(5) Companion services block grants in cases of failure
to comply.--
``(A) In general.--If, for any fiscal year, the Chairperson
of the Interagency Council on the Homeless determines that
adequate coordination has not taken place to ensure that
assistance for federally funded activities for the homeless
is made available in conjunction and coordination with
assistance under this title (as required under paragraph
(2)), the Chairperson of the Interagency Council on the
Homeless and the Secretary, in consultation with the
Interagency Council on the Homeless, shall carry out a
program under subparagraph (B) to make companion services
block grants available for such fiscal year.
``(B) Companion service block grants.--The block grant
program under this subparagraph shall provide block grants,
using amounts available pursuant to subparagraph (C), to
eligible grantees under this title to provide services of the
type available under the programs referred to in paragraph
(4) in connection with housing assistance under this title.
``(C) Funding.--
``(i) In general.--Notwithstanding any other provision of
law, in any fiscal year in which block grants are to be
provided in accordance with subparagraph (A), there shall be
available for such block grants, of the amount made available
for such fiscal year for each activity referred to in
paragraph (4), 10 percent of such amount, as determined by
the Secretary and the Interagency Council on the Homeless.
``(ii) Limitation.--Notwithstanding clause (i), the
aggregate amount available for companion services block
grants under this paragraph for a fiscal year shall not
exceed the total amount made available pursuant to section
435 for housing assistance under this title. If, for any
fiscal year, the amount determined under clause (i) exceeds
such amount, the Secretary shall reduce the percentage under
clause (i) for such year so that the aggregate amount made
available for companion services block grants under this
paragraph from the amounts for each activity referred to in
paragraph (4) is equal to the total amount made available
pursuant to section 435 for housing assistance under this
title.
``(D) Transfer authority.--Except to the extent that the
authority of the Secretary and the Chairperson of the
Interagency Council on the Homeless is limited by
appropriations, and with the concurrence of the head of the
affected agency and upon advance approval of the Committees
on Appropriations and the authorizing committees of the House
of Representatives and the Senate, the Secretary and the
Chairperson of the Interagency Council on the Homeless shall
[[Page H709]]
transfer funds made available under subparagraph (C) to the
companion services block grant for federally funded
activities, functions, or programs for the homeless.
``(E) Report.--Not later than the first quarter of the
first full fiscal year after the date of the enactment of the
Homeless Housing Programs Consolidation and Flexibility Act
and each quarter thereafter, the Secretary and the
Chairperson of the Interagency Council on the Homeless shall
report to Congress on--
``(i) the need for any reprogramming or transfer of funds
appropriated for federally funded activities, functions, or
programs for the homeless; and
``(ii) any funds appropriated for federally funded
activities, functions, or programs for the homeless that were
reprogrammed or transferred during the quarter covered by the
report.
``(n) Consultation Regarding Use of National Guard
Facilities as Homeless Shelters.--The Secretary may not
provide a grant for a fiscal year from amounts for such year
allocated under section 406(c) for use under subtitle C for a
State unless the State has consulted with the Secretary
regarding the possibility of making any space at National
Guard facilities under the jurisdiction of the State
available, during such fiscal year, for use by homeless
organizations to provide shelter to homeless persons, but
only at the times that such space is not actively being used
for National Guard purposes or other public purposes already
undertaken.
``SEC. 409. SUPPORTIVE SERVICES.
``(a) Requirement.--To the extent allowed by this title,
each project sponsor administering permanent housing
development assistance provided with amounts under this title
or a supportive housing facility or emergency shelter
assisted with such amounts shall provide supportive services
for residents of the dwelling units or facility or shelter
assisted. The array of supportive services provided may be
designed by the grantee or the project sponsor administering
the assistance, facility, or shelter. A project sponsor
administering a supportive housing facility shall provide
supportive services for other homeless persons using the
facility.
``(b) Targeting Populations With Special Needs.--Supportive
services provided with grant amounts under this title shall
address the special needs of homeless persons (such as
homeless persons with disabilities, homeless persons with
acquired immunodeficiency syndrome and related diseases,
homeless persons who have chronic problems with alcohol or
drugs (or both), veterans who are homeless, and homeless
families with children) intended to be served.
``(c) Services.--Supportive services may include activities
such as--
``(1) establishing and operating a child care services
program for homeless families;
``(2) establishing and operating an employment assistance
program;
``(3) providing outpatient health services, food, and case
management;
``(4) providing assistance in obtaining permanent housing,
employment counseling, and nutritional counseling;
``(5) providing security arrangements necessary for the
protection of residents of supportive housing or emergency
shelters and for homeless persons using supportive housing
facilities;
``(6) providing assistance in obtaining other Federal,
State, and local assistance available for such residents and
persons (including mental health benefits, employment
counseling, and medical assistance, but not including major
medical equipment); and
``(7) providing other appropriate services.
``(d) Provision of Services.--Supportive services provided
with grant amounts under this title may be provided directly
by the grantee, by the project sponsor administering the
permanent housing development assistance or the facility or
shelter, or by contract with other public or private service
providers. Such services provided in connection with a
supportive housing facility may be provided to homeless
persons who do not reside in the supportive housing, but only
to the extent consistent with the comprehensive housing
affordability strategy under section 105 of the Cranston-
Gonzalez National Affordable Housing Act for the applicable
jurisdiction.
``SEC. 410. NONDISCRIMINATION IN PROGRAMS AND ACTIVITIES.
``No person in the United States shall on the basis 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 subtitle. Any prohibition against discrimination on the
basis of age under the Age Discrimination Act of 1975 or with
respect to an otherwise qualified handicapped individual, as
provided in section 504 of the Rehabilitation Act of 1973,
shall also apply to any such program or activity.
``Subtitle B--Permanent Housing Development Activities
``SEC. 411. USE OF AMOUNTS AND GENERAL REQUIREMENTS.
``(a) Use of Amounts for Permanent Housing Development.--
``(1) Authorized use.--A State, metropolitan city, or urban
county that receives a grant under section 402(b)(2) from
amounts allocated for use under this subtitle may use grant
amounts (and any supplemental amounts provided under section
407) only to carry out permanent housing development
activities within such State, metropolitan city, or urban
county. For purposes of this subtitle, the term `permanent
housing development activities' means activities to
construct, substantially rehabilitate, or acquire structures
to provide permanent housing, including the capitalization of
a dedicated project account from which long-term assistance
payments (which may include operating costs or rental
assistance) can be made in order to facilitate such
activities, and activities under section 441 of the this Act,
as in effect on October 31, 1997 (subject to the limitation
in section 406(b)(3) of this Act).
``(2) Use for supportive services prohibited.--Amounts
allocated for use under this subtitle may not be used for
supportive services activities.
``(b) Use Through Nonprofit Organizations.--
``(1) In general.--A grantee that receives grant amounts
for a fiscal year for use under this subtitle may, pursuant
to section 404, provide such amounts to units of general
local government and private nonprofit organizations for use
in accordance with this subtitle, except that the grantee
shall ensure that more than 50 percent of the amounts
received by the grantee for the fiscal year are used through
private nonprofit organizations.
``(2) Waiver of use of nonprofit requirement.--The
Secretary may waive the requirement under paragraph (1) that
a grantee ensure that more than 50 percent of the amounts
received by the grantee for the fiscal year are used through
private nonprofit organizations if the Secretary determines
that there are not sufficient private nonprofit organizations
available to the grantee to meet that requirement.
``(c) Administrative Fee.--To the extent provided in
section 408(g), grant amounts provided under this subtitle
may be used by the project sponsor providing such assistance
for costs of administering such assistance.
``(d) Targeting Populations With Special Needs.--To the
maximum extent practicable, a grantee shall provide for use
of grant amounts made available under this subtitle in a
manner that provides permanent housing for homeless persons
with disabilities, homeless persons with acquired
immunodeficiency syndrome or related diseases, homeless
persons who have chronic problems with alcohol or drugs (or
both), homeless families with children, and veterans who are
homeless.
``SEC. 412. PERMANENT HOUSING DEVELOPMENT.
``(a) In General.--Housing shall be considered permanent
housing for purposes of this title if the housing--
``(1) provides long-term housing for homeless persons;
``(2) complies with any applicable State and local housing
codes, licensing requirements, or other requirement in the
jurisdiction in which the housing is located, including any
applicable State or local requirements regarding the number
of occupants in such a facility; and
``(3) complies with the requirement under section 409(a)
regarding providing supportive services for homeless persons.
``(b) Clarification.--Permanent housing may--
``(1) be restricted for occupancy by homeless persons with
disabilities;
``(2) consist of or contain full dwelling units or dwelling
units that do not contain bathrooms or kitchen facilities;
and
``(3) be provided in the form of rental housing,
cooperative housing, shared living arrangements, single
family housing, or other types of housing arrangements.
``Subtitle C--Flexible Block Grant Homeless Assistance
``SEC. 421. ELIGIBLE ACTIVITIES.
``(a) In General.--Grant amounts allocated for use under
this subtitle may be used only for carrying out the following
activities:
``(1) Acquisition and rehabilitation of supportive
housing.--For acquisition or rehabilitation of an existing
structure (including a small commercial property or office
space) to provide supportive housing other than emergency
shelter or to provide supportive services; the repayment of
any outstanding debt owed on a loan made to purchase an
existing structure for use as supportive housing shall be
considered to be a cost of acquisition under this paragraph
if the structure was not used as supportive housing or to
provide supportive services, before assistance is provided
using grant amounts.
``(2) New construction of supportive housing.--For new
construction of a structure to be used as supportive housing.
``(3) Leasing of supportive housing.--For leasing of an
existing structure or structures, or portions thereof, to
provide supportive housing or supportive services during the
period covered by the application.
``(4) Operating costs for supportive housing.--For covering
operating costs of supportive housing (which shall include
capital costs for utilizing any interactive computer or
telephone services and other electronic information networks
and systems appropriate for assisting homeless families);
except that grant amounts provided under this subtitle may
not be used to cover more than 75 percent of the annual
operating costs of such housing.
``(5) Homelessness prevention.--
``(A) In general.--For activities designed to help persons
(including veterans who are at risk of becoming homeless) and
families
[[Page H710]]
avoid becoming homeless, which shall include assistance for
making mortgage payments, rental payments, and utility
payments and any activities other than those found by the
Secretary to be inconsistent with the purposes of this Act.
``(B) Persons eligible for assistance.--Assistance under
this paragraph may be provided only to very low-income
families who have received eviction (or mortgage delinquency
or foreclosure) notices or notices of termination of utility
services and who--
``(i) are unable to make the required payments due to a
sudden reduction in income;
``(ii) need such assistance to avoid homelessness due to
the eviction or termination of services; and
``(iii) have a reasonable prospect of being able to resume
payments within a reasonable period of time.
``(C) Limitation.--Assistance under this paragraph may be
provided only if such assistance will not supplant funding
for preexisting homelessness prevention activities from other
services.
``(6) Permanent housing development activities.--For
providing permanent housing development activities as
described in subtitle B.
``(7) Emergency shelter.--For--
``(A) renovation, major rehabilitation, or conversion of a
building or buildings to be used as emergency shelters;
``(B) covering costs of supportive services in connection
with an emergency shelter, if such services do not supplant
any services provided by the local government during any part
of the 12-month period ending on the date of the commencement
of the operation of the emergency shelter; and
``(C) covering costs relating to maintenance, operation,
insurance, utilities, and furnishings for emergency shelters.
``(8) Supportive services.--To the extent provided in
section 406, for covering costs of supportive services
provided to homeless persons in connection with a permanent
or supportive housing facility or otherwise.
``(9) Technical assistance.--For technical assistance in
carrying out the purposes of this title, except that the
Secretary may provide such technical assistance directly to
any grantee, including nonprofit sponsors who are proposing
project applications for populations with special needs.
``(b) Use for Housing Activities.--Of the aggregate of any
grant amounts provided to a grantee for a fiscal year for use
under this subtitle and the supplemental amounts provided for
such fiscal year by the grantee in accordance with section
407, the grantee shall ensure that an amount that is not less
than such grant amounts (less any amount used pursuant to
section 408(g)) is used for eligible activities described in
paragraphs (1) through (6) of subsection (a).
``SEC. 422. USE OF AMOUNTS THROUGH PRIVATE NONPROFIT
PROVIDERS.
``(a) In General.--In each fiscal year, each grantee of
amounts for use under this subtitle shall ensure that more
than 50 percent of the amounts received by the grantee for
such fiscal year are used for carrying out eligible
activities under section 421 through project sponsors that
are private nonprofit organizations.
``(b) Waiver.--The Secretary may waive the requirement
under subsection (a) that a grantee ensure that more than 50
percent of the amounts received by the grantee for the fiscal
year are used through private nonprofit organizations if the
Secretary determines that there are not sufficient private
nonprofit organizations available to the grantee to meet that
requirement.
``SEC. 423. SUPPORTIVE HOUSING.
``(a) In General.--Housing shall be considered supportive
housing for purposes of this subtitle if--
``(1) the housing complies with the requirement under
section 409(a) regarding providing supportive services for
homeless persons;
``(2) the housing complies with any applicable State and
local housing codes and licensing requirements in the
jurisdiction in which the housing is located; and
``(3) the housing--
``(A) is transitional housing; or
``(B) is permanent supportive housing as described in
section 412.
``(b) Transitional Housing.--For purposes of this section,
the term `transitional housing' means housing, the purpose of
which is to facilitate the movement of homeless persons and
families to permanent housing within 24 months or such longer
period as the Secretary determines necessary. Assistance may
be denied for housing based on a violation of this subsection
only if a substantial number of homeless persons or families
have remained in the housing longer than such period.
``(c) Single Room Occupancy Dwellings.--For purposes of
this section, a facility may provide supportive housing or
supportive services in dwelling units that do not contain
bathrooms or kitchen facilities and are appropriate for use
as supportive housing or in facilities containing some or all
such dwelling units.
``(d) Safe Haven Housing.--For purposes of this section,
supportive housing may be a structure or a clearly
identifiable portion of a structure that--
``(1) provides housing and low-demand services and
referrals for homeless persons with serious mental illness--
``(A) who are currently residing primarily in places not
designed for, or ordinarily used as, regular sleeping
accommodations for human beings; and
``(B) who have been unwilling or unable to participate in
mental health or substance abuse treatment programs or to
receive other supportive services; except that a person whose
sole impairment is substance abuse shall not be considered an
eligible person;
``(2) provides 24-hour residence for eligible individuals
who may reside for an unspecified duration;
``(3) provides private or semi-private accommodations;
``(4) may provide for the common use of kitchen facilities,
dining rooms, and bathrooms;
``(5) may provide supportive services to eligible persons
who are not residents on a drop-in basis; and
``(6) provides occupancy limited to no more than 25
persons.
``SEC. 424. EMERGENCY SHELTER.
``(a) In General.--A facility shall be considered emergency
shelter for purposes of this subtitle if the facility is
designed to provide overnight sleeping accommodations for
homeless persons and complies with the requirements under
this section. An emergency shelter may include appropriate
eating and cooking accommodations.
``(b) Requirements.--Grant amounts under this subtitle may
be used for eligible activities under section 421(a)(7)
relating to emergency shelter only if--
``(1) the Secretary determines that--
``(A) use of such amounts is necessary to meet the
emergency shelter needs of the jurisdiction in which the
facility is located; and
``(B) the use of such amounts for such activities will not
violate the prohibition under section 408(f); and
``(2) the project sponsor agrees that it will--
``(A) in the case of assistance involving major
rehabilitation or conversion of a building, maintain the
building as a shelter for homeless persons and families for
not less than a 10-year period unless, within such 10-year
period, the need for maintaining the building as a full-time
shelter ceases to exist and the building is used for the
remainder of such period to carry out other eligible
activities under this subtitle;
``(B) in the case of assistance involving rehabilitation
(other than major rehabilitation or conversion of a
building), maintain the building as a shelter for homeless
persons and families for not less than a 3-year period;
``(C) in the case of assistance involving only activities
described in subparagraphs (B) and (C) of section 421(a)(7),
provide services or shelter to homeless persons and families
at the original site or structure or other sites or
structures serving the same general population for the period
during which such assistance is provided;
``(D) comply with the standards of housing quality
applicable under section 408(h); and
``(E) assist homeless persons in obtaining--
``(i) appropriate supportive services, permanent housing,
medical and mental health treatment (including information
and counseling regarding the benefits and availability of
child immunization), counseling, supervision, veterans
benefits, and other services essential for achieving
independent living; and
``(ii) other Federal, State, local, and private assistance
available for homeless persons.
``Subtitle D--Reporting, Definitions, and Funding
``SEC. 431. PERFORMANCE REPORTS BY GRANTEES.
``(a) Requirement.--For each fiscal year, each grantee
under this title shall review and report, in a form
acceptable to the Secretary, on the progress it has made
during such fiscal year in carrying out the activities
described in the application resulting in such grant and the
relationship of such activities to the comprehensive housing
affordability strategy under section 105 of the Cranston-
Gonzalez National Affordable Housing Act for the applicable
jurisdiction.
``(b) Content.--Each report under this section for a fiscal
year shall--
``(1) describe the use of grant amounts provided to the
grantee for such fiscal year;
``(2) to the extent practicable until the development of a
reasonable methodology by the Secretary and the Interagency
Council on the Homeless, describe the number of homeless
persons and families, including populations with special
needs provided shelter, housing, or assistance using such
grant amounts;
``(3) assess the relationship of such use to the goals
identified pursuant to section 105(b)(2) of the Cranston-
Gonzalez National Affordable Housing Act in the comprehensive
housing affordability strategy for the applicable
jurisdiction;
``(4) indicate the grantee's programmatic accomplishments;
``(5) describe how the grantee would change its programs as
a result of its experiences; and
``(6) describe any delays that occurred in the start up of
programs and the reason for each delay.
``(c) Submission.--The Secretary shall establish dates for
submission of reports under this section and review such
reports and make such recommendations as the Secretary
considers appropriate to carry out the purposes of this
title. The Secretary may withhold or reallocate funds granted
to a
[[Page H711]]
grantee if the Secretary finds that the grantee has complied
with applicable program requirements, but not substantially
complied with the application that the grantee submitted to
obtain such funds.
``(d) Public Availability.--
``(1) In general.--A grantee preparing a report under this
section shall make the report publicly available to the
citizens in the jurisdiction of the grantee in sufficient
time to permit such citizens to comment on such report prior
to its submission to the Secretary, and in such manner and at
such times as the grantee may determine. The report shall
include a summary of any such comments received by the
grantee regarding its program.
``(2) Electronic access.--A grantee may comply with the
requirement under paragraph (1) by making the report
available through interactive computer or telephone services
or other electronic information networks and systems
appropriate for making such information widely publicly
available. The Secretary shall make each final report
submitted under this section publicly available through such
a computer, telephone, or information service, network, or
system.
``(e) Authority of Secretary.--The Secretary shall
establish procedures appropriate and practicable for
providing a fair hearing and timely resolution of citizen
complaints related to performance reports under this section.
``SEC. 432. ANNUAL REPORT BY SECRETARY.
``The Secretary shall include in the annual report, under
section 8 of the Department of Housing and Urban Development
Act, information summarizing the activities carried out under
this title and setting forth the findings, conclusions, and
recommendations of the Secretary as a result of the
activities. Such information shall be made publicly available
through interactive computer or telephone services or other
electronic information networks and systems appropriate for
making such information widely available to the public.
``SEC. 433. DEFINITIONS.
``For purposes of this title, the following definitions
shall apply:
``(1) Applicant.--The term `applicant' means an eligible
grantee that submits an application under section 408(a) for
a grant under this title.
``(2) Eligible grantee.--The term `eligible grantee' is
defined in section 403.
``(3) Facility.--The term `facility' means a structure or
structures (or a portion of such structure or structures)
that are assisted through eligible activities under subtitle
C with grant amounts under this title (or for which the
Secretary provides technical assistance under section
421(a)(9)).
``(4) Grantee.--The term `grantee' means an applicant that
receives a grant under this title.
``(5) Insular area.--The term `insular area' means each of
the Virgin Islands, Guam, American Samoa, the Northern
Mariana Islands, and any other territory or possession of the
United States.
``(6) Metropolitan city, consortium.--The term
`metropolitan city' has the meaning given that term in
section 102 of the Housing and Community Development Act of
1974. A consortium of units of general local governments
shall be considered to be a metropolitan city--
``(A) for amounts allocated in accordance with section
406(c)(3), only if the consortium received a formula grant
for fiscal year 1996 or 1997 under subtitle B of this title,
as then in effect; and
``(B) for amounts allocated in accordance with any formula
developed pursuant to section 406(c)(5), only if the
Secretary determines that the consortium--
``(i)(I) is comprised of units of general local government
which are geographically contiguous (which may include all
units of general local government within a State);
``(II) has sufficient authority and administrative
capability to carry out the purposes of this title on behalf
of its member jurisdictions; and
``(III) will, according to a written certification by the
State (or States, if the consortium includes jurisdictions in
more than one State) in which its member jurisdictions are
located, direct its activities to alleviation of homelessness
problems within the State (or States); or
``(ii) received a formula grant for fiscal year 1996 or
1997 under subtitle B of this title, as then in effect.
``(7) Nonentitlement area.--The term `nonentitlement area'
means an area that is not a metropolitan city or part of an
urban county and does not include Indian tribes or insular
areas.
``(8) Operating costs.--The term `operating costs' means
expenses incurred by a grantee operating supportive housing
assisted with grant amounts under this title, with respect
to--
``(A) the administration, maintenance, repair, and security
of such housing;
``(B) utilities, fuel, furnishings, and equipment for such
housing; and
``(C) the conducting of the assessment under section
408(b)(2).
``(9) Outpatient health services.--The term `outpatient
health services' means outpatient health care, outpatient
mental health services, outpatient substance abuse services,
and case management.
``(10) Person with disabilities.--The term `person with
disabilities' means a person who--
``(A) has a disability as defined in section 223 of the
Social Security Act;
``(B) is determined to have, pursuant to regulations issued
by the Secretary, a physical, mental, or emotional impairment
which (i) is expected to be of long-continued and indefinite
duration, (ii) substantially impedes an individual's ability
to live independently, and (iii) is of such a nature that
such ability could be improved by more suitable housing
conditions; or
``(C) has a developmental disability as defined in section
102 of the Developmental Disabilities Assistance and Bill of
Rights Act.
Such term shall not exclude persons who have the disease of
acquired immunodeficiency syndrome or any conditions arising
from the etiologic agent for acquired immunodeficiency
syndrome.
``(11) Private nonprofit organization.--The term `private
nonprofit organization' means any private organization that--
``(A) is organized under State or local laws;
``(B) has no part of its net earnings inuring to the
benefit of any member, founder, contributor, or individual;
``(C) complies with standards of financial accountability
acceptable to the Secretary; and
``(D) has among its purposes significant activities related
to the provision of--
``(i) decent housing that is affordable to low-income and
moderate-income families; or
``(ii) shelter, housing, or services for homeless persons
or families or for persons or families at risk of becoming
homeless.
``(12) Project sponsor.--The term `project sponsor' means
an entity that uses grant amounts under this title to carry
out a permanent housing development program under subtitle B
or eligible activities under subtitle C. The term includes a
grantee carrying out such a program or activities.
``(13) Secretary.--The term `Secretary' means the Secretary
of Housing and Urban Development.
``(14) State.--The term `State' means each of the several
States and the Commonwealth of Puerto Rico.
``(15) Supportive housing.--The term `supportive housing'
means a facility that meets the requirements of section 423.
``(16) Supportive services.--The term `supportive services'
means services under section 409.
``(17) Urban county, unit of general local government.--The
terms `urban county' and `unit of general local government'
have the meanings given the terms in section 102 of the
Housing and Community Development Act of 1974.
``(18) Very low-income families.--The term `very low-income
families' has the same meaning given the term under section
3(b) of the United States Housing Act of 1937 (or any other
subsequent provision of Federal law defining such term for
purposes of eligibility for, or rental charges in, public
housing).
``SEC. 434. REGULATIONS.
``(a) Issuance.--Not later than the expiration of the 30-
day period beginning upon the date of the enactment of the
Homeless Housing Programs Consolidation and Flexibility Act,
the Secretary shall issue interim regulations to carry out
this title. The Secretary shall issue final regulations to
carry out this title after notice and opportunity for public
comment regarding the interim regulations in accordance with
the procedure under section 553 of title 5, United States
Code, applicable to substantive rules (notwithstanding
subsections (a)(2), (b)(B), and (d)(3) of such section), but
not later than the expiration of the 90-day period beginning
upon the date of the enactment of the Homeless Housing
Programs Consolidation and Flexibility Act.
``(b) Rule of Construction.--Any failure by the Secretary
to issue any regulations under this section shall not affect
the effectiveness of any provision of this title pursuant to
section 4(b) of the Homeless Housing Programs Consolidation
and Flexibility Act.
``SEC. 435. AUTHORIZATION OF APPROPRIATIONS.
``(a) In General.--There are authorized to be appropriated
for grants under this title $1,000,000,000 for each of fiscal
years 1998, 1999, 2000, 2001, and 2002.
``(b) Prohibition on Set Asides.--Notwithstanding any other
provision of law, any attempt to put any restriction on the
use of funds appropriated for this title (such as for use in
special projects) shall be considered an appropriation
without authorization and shall be without force or
effect.''.
(b) Applicability.--The provisions of the amendment made by
subsection (a) shall apply with respect to fiscal year 1998
and each fiscal year thereafter.
SEC. 6. INTERAGENCY COUNCIL ON THE HOMELESS.
(a) Chairperson and Vice Chairperson.--Section 202(b) of
the Stewart B. McKinney Homeless Assistance Act (42 U.S.C.
11312(b) is amended to read as follows:
``(b) Chairperson and Vice Chairperson.--
``(1) Chairperson.--The Council shall elect a Chairperson
from among its members, who shall have a term of 2 years. A
member of the Council by reason of any of paragraphs (1)
through (16) of subsection (a) who serves as Chairperson for
a term may not be elected to serve as Chairperson for the
succeeding term. The preceding sentence shall not apply to
any member serving as Chairperson on the date of the
enactment of the Homeless Housing Programs Consolidation and
Flexibility Act.
``(2) Vice chairperson.--The Vice Chairperson of the
Council shall have a term of 2 years and shall be--
[[Page H712]]
``(A) the Secretary of Housing and Urban Development, if
such Secretary is not elected as the Chairperson of the
Council; or
``(B) elected by the Council from among its members, if the
Secretary of Housing and Urban Development is elected as the
Chairperson of the Council.
``(3) Notwithstanding paragraphs (1) and (2), the first
Chairperson elected after the date of the enactment of the
Homeless Housing Programs Consolidation and Flexibility Act
may not be the Secretary of Housing and Urban Development.''.
(b) Authorization of Appropriations.--Section 208 of the
Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11318)
is amended to read as follows:
``SEC. 208. AUTHORIZATION OF APPROPRIATIONS.
``Of any amounts made available in any fiscal year to carry
out this Act, 0.0012 of such amounts shall be available to
carry out this title.''.
(c) Termination.--Section 209 of the Stewart B. McKinney
Homeless Assistance Act (42 U.S.C. 11319) is amended by
striking ``October 1, 1994'' and inserting ``October 1,
2002''.
(d) Repeal.--Section 210 of the Stewart B. McKinney
Homeless Assistance Act (42 U.S.C. 11320) is hereby repealed.
SEC. 7. INVENTORY OF FEDERAL FACILITIES SUITABLE FOR
OVERNIGHT SHELTER FOR HOMELESS PERSONS.
(a) Identification.--Not later than 30 days after the date
of the enactment of this Act, the Secretary of Housing and
Urban Development shall request, from the head of each
executive agency, information that identifies each covered
facility (or any parts thereof) under the control of the
executive agency that is suitable for use as temporary
overnight shelter for homeless persons.
(b) Consultation.--At the request of the head of any
executive agency, the Secretary shall consult with such
agency head regarding whether facilities of the agency, or a
particular facility or facilities, are covered facilities or
are suitable for use as temporary overnight shelter for
homeless persons.
(c) Compilation and Publication.--Not later than 60 days
after the date of the enactment of this Act, the Secretary
shall compile the information submitted pursuant to
subsection (a) and cause the compiled information to be
published in the Federal Register a list of all covered
facilities identified as suitable for use as temporary
overnight shelter for homeless persons.
(d) Definitions.--For purposes of this section, the
following definitions shall apply:
(1) Covered facility.--The term ``covered facility'' means
any building, structure, land, or other real property that,
in the determination of the head of the Federal agency having
control of the property, using standards that shall be
established by the Secretary, reasonably could be made
available for the use described in subsection (a) without
substantial conflict with any other existing, expected, or
potential use of the property to carry out the mission of the
agency.
(2) Executive agency.--The term ``executive agency'' has
the meaning given such term in section 105 of title 5, United
States Code.
(3) Homeless person.--The term ``homeless person'' has the
meaning given such term in section 102 of the Stewart B.
McKinney Homeless Assistance Act (42 U.S.C. 11302).
(4) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
SEC. 8. REPEALS AND CONFORMING AMENDMENTS.
(a) Repeals.--The following provisions of law are hereby
repealed:
(1) Innovative homeless initiatives demonstration.--Section
2 of the HUD Demonstration Act of 1993 (42 U.S.C. 11301
note).
(2) FHA single family property disposition for homeless
use.--Section 1407 of the Housing and Community Development
Act of 1992 (Public Law 102-550; 106 Stat. 4034).
(3) Housing for rural homeless and migrant farmworkers.--
Subsection (k) of section 516 of the Housing Act of 1949 (42
U.S.C. 1486(k)).
(b) Termination of SRO Assistance Program.--Section 8(e)(2)
of the United States Housing Act of 1937 shall not be in
effect on or after the date of the enactment of this Act as
provided in subsections (a)(4) and (b)(2) of section 289 of
the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12839).
(c) Conforming Amendments to Youthbuild Program.--Title IV
of the Cranston-Gonzalez National Affordable Housing Act is
amended--
(1) in section 455(b) (42 U.S.C. 12899d(b)) by inserting
``subtitle C of'' before ``title IV''; and
(2) in section 457(4) (42 U.S.C. 12899f(4)), by striking
``section 103'' and inserting ``section 102''.
(d) Clerical Amendment.--The table of contents in section
101(b) of the Stewart B. McKinney Homeless Assistance Act is
amended by striking the items relating to titles I, II, III,
and IV (including the items relating to the subtitles, parts,
and sections of such titles) and inserting the following new
items:
``TITLE I--GENERAL PROVISIONS
``Sec. 101. Short title and table of contents.
``Sec. 102. General definition of homeless individual.
``Sec. 103. Funding availability and limitations.
``Sec. 104. Annual program summary by Comptroller General.
``TITLE II--INTERAGENCY COUNCIL ON THE HOMELESS
``Sec. 201. Establishment.
``Sec. 202. Membership.
``Sec. 203. Functions.
``Sec. 204. Director and staff.
``Sec. 205. Powers.
``Sec. 206. Transfer of functions.
``Sec. 207. Definitions.
``Sec. 208. Authorization of appropriations.
``Sec. 209. Termination.
``TITLE III--FEDERAL EMERGENCY MANAGEMENT FOOD AND SHELTER PROGRAM
``Subtitle A--Administrative Provisions
``Sec. 301. Emergency Food and Shelter Program National Board.
``Sec. 302. Local boards.
``Sec. 303. Role of Federal Emergency Management Agency.
``Sec. 304. Records and audit of National Board and grantees of
assistance.
``Sec. 305. Annual report.
``Subtitle B--Emergency Food and Shelter Grants
``Sec. 311. Grants by the Director.
``Sec. 312. Retention of interest earned.
``Sec. 313. Purposes of grants.
``Sec. 314. Limitation on certain costs.
``Sec. 315. Disbursement of funds.
``Sec. 316. Program guidelines.
``Subtitle C--General Provisions
``Sec. 321. Definitions.
``Sec. 322. Authorization of appropriations.
``TITLE IV--PERMANENT HOUSING DEVELOPMENT AND FLEXIBLE BLOCK GRANT
HOMELESS ASSISTANCE PROGRAM
``Subtitle A--General Provisions
``Sec. 401. Purpose; performance measures.
``Sec. 402. Grant authority.
``Sec. 403. Eligible grantees.
``Sec. 404. Use of project sponsors.
``Sec. 405. Comprehensive housing affordability strategy compliance.
``Sec. 406. Allocation and availability of amounts.
``Sec. 407. Matching funds requirement.
``Sec. 408. Program requirements.
``Sec. 409. Supportive services.
``Sec. 410. Nondiscrimination in programs and activities.
``Subtitle B--Permanent Housing Development Activities
``Sec. 411. Use of amounts and general requirements.
``Sec. 412. Permanent housing development.
``Subtitle C--Flexible Block Grant Homeless Assistance
``Sec. 421. Eligible activities.
``Sec. 422. Use of amounts through private nonprofit providers.
``Sec. 423. Supportive housing.
``Sec. 424. Emergency shelter.
``Subtitle D--Reporting, Definitions, and Funding
``Sec. 431. Performance reports by grantees.
``Sec. 432. Annual report by Secretary.
``Sec. 433. Definitions.
``Sec. 434. Regulations.
``Sec. 435. Authorization of appropriations.''.
SEC. 9. SAVINGS PROVISION.
Nothing in this Act may be construed to affect the validity
of any right, duty, or obligation of the United States or
other person arising under or pursuant to any commitment or
agreement entered into before the date of the enactment of
this Act under any provision of law repealed or amended by
this Act.
SEC. 10. TREATMENT OF PREVIOUSLY OBLIGATED AMOUNTS.
Notwithstanding the amendment or repeal of any provision of
law by this Act, any amounts appropriated to carry out the
provisions so amended or repealed that are obligated before
the date of the enactment of this Act 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 date of
enactment.
The SPEAKER pro tempore. Pursuant to the rule, the gentleman from New
York (Mr. Lazio) and the gentleman from Massachusetts (Mr. Kennedy)
each will control 20 minutes.
The Chair recognizes the gentleman from New York (Mr. Lazio).
Mr. LAZIO of New York. Mr. Speaker, I yield myself such time as I may
consume, and I would begin by thanking the gentleman from Massachusetts
(Mr. Kennedy), the ranking member on the committee, for his cooperation
throughout the process. I will have more to say about him later,
because I think this product is largely an effort of cooperation
between the two sides, and I am proud of that.
Mr. Speaker, I yield such time as he may consume to the gentleman
from Iowa (Mr. Leach), the great chairman of the Committee on Banking
and Financial Services.
Mr. LEACH. Mr. Speaker, I thank the gentleman for yielding me this
time, and let me just say that this particular bill, which is a
homeless housing consolidation act, was introduced by our distinguished
chairman of the Subcommittee on Housing of the Committee on Banking and
Financial Services,
[[Page H713]]
the gentleman from New York (Mr. Lazio). It has received a great deal
of partisan input, led by the gentleman from Massachusetts (Mr.
Kennedy), and a number of refinements from the administration and Mr.
Cuomo, Secretary of HUD.
I personally think it is a common sense, thoughtful, constructive way
to proceed with homeless housing. It represents a commitment of
Congress to this arena of public concern, which is one of the most
extraordinary in this country at this time. For a country the size of
ours to have the depth of our problems is clearly a national
embarrassment that takes a great deal of national commitment to
overcome.
I would just like to suggest to my colleagues that this is one of
these kinds of bills that has had the input of lots of parties and
certainly the gentleman from Massachusetts, in his support, symbolizes
that; but the gentleman from New York, again, this distinguishes him as
one of the preeminent subcommittee chairmen of the House, and I am very
appreciative of his leadership on this issue.
Mr. KENNEDY of Massachusetts. Mr. Speaker, I yield myself such time
as I may consume to say, first and foremost, that I would like to again
commend the chairman of the Subcommittee on Housing and let him know
what a great job I think he has done on this bill and look forward to a
strong vote on this bill in a few minutes.
Mr. Speaker, I yield such time as he may consume to the gentleman
from New York (Mr. LaFalce), the new ranking member. I think this is
his first time on the House floor as the ranking member of our
Committee on Banking and Financial Services, and we all appreciate the
dedication and support he has shown not only to housing but in looking
out for working families across the board.
{time} 1430
Mr. LaFALCE. Mr. Speaker, I am so pleased my first occasion speaking
as the ranking Democrat is on behalf of H.R. 217, the Homeless Housing
Programs Consolidation and Flexibility Act, because I cannot think of
any issue that is more important to our committee and to the House, and
I cannot think of any bill that I am more supportive of.
Taking on the housing problems of the homeless can often be a
thankless task. That is why I would like to start by giving special
recognition to the efforts of the gentleman from New York (Mr. Lazio)
and the gentleman from Massachusetts (Mr. Kennedy), the chairman and
ranking member of the Subcommittee on Housing and Community
Opportunity. Both of the gentlemen have a shared commitment to
improving the housing condition of all Americans, and the two have
crafted a bipartisan bill to address an issue that could have been
polarized, could have been politicized. It gives me hope that we might
move other essential housing reform bills ready for conference in an
equally collegial fashion.
The bill before us, however, is not only the product of compromise
across the aisle. Advocates for homeless providers, homeless persons
and State and local governments have also compromised in an effort to
move this bill. It is a good compromise, one that includes a number of
long-needed reforms.
For one, the bill redirects a recent trend away from developing
permanent housing to funding supportive service programs. Certainly we
recognize that the service needs of formerly homeless persons and
families run deep. But if permanent affordable housing is unavailable,
providing services is meaningless. H.R. 217 addresses this problem by
preserving 30 percent of the annual appropriation for permanent housing
development, and discourages States and localities from using more than
35 percent of their grant for services.
Equally important is the bill's authorization level of $1 billion,
$177 million more than the current appropriation of $823 million. I am
hopeful this level will send a strong message to the appropriators that
the homeless funding level of the last 4 years has been and is
insufficient.
Reductions in SSI and food stamps have already put an additional
strain on our already overburdened emergency shelters. With time limits
on welfare assistance looming before us, there is increased pressure to
invest in homeless prevention and emergency housing programs as well as
affordable housing development. Despite the fact that our housing
delivery system is becoming increasingly more efficient and effective,
it cannot sustain all these new and looming pressures without
additional resources. So I appeal to the appropriators to recognize the
increased needs in our communities, as the authorizing committee has
done, and give some relief to an already overburdened system.
Again, I urge all Members to support the gentleman from New York (Mr.
Lazio) and the gentleman from Massachusetts (Mr. Kennedy) in supporting
H.R. 217.
Mr. LAZIO of New York. Mr. Speaker, I yield myself such time as I may
consume, and I yield to the gentleman from Iowa (Mr. Leach), the
chairman of the Committee on Banking and Financial Services.
Mr. LEACH. Mr. Speaker, I thank the gentleman for yielding. On behalf
of the majority, I would like to speak out of order for a few seconds
simply to congratulate the minority in their thoughtfulness in
designating the gentleman from New York (Mr. LaFalce) as the new
ranking member. Speaking personally, he is not only a wonderful friend
but his background in all the issues before the Committee on Banking
and Financial Services is unparalleled and unmatched. We are very
honored to work with him and we look forward to that prospect.
Mr. LAZIO of New York. Mr. Speaker, I want to once again thank the
gentleman from Iowa (Mr. Leach), the chairman of the committee, for his
leadership and his commitment to the needs of low-income families and
individuals. Without his help, this bill would not be before us today.
Mr. Speaker, today we embark upon a journey with a worthy
destination, an America where no one has to live or die on the streets.
Tragically, walking through the streets of many of our cities today,
one would see a much different picture than our ideal portrait of an
American community. On any one evening in America, say last night, for
example, over a half million people, real people with real lives, are
homeless. Why? The frustration is that we know what works. We have seen
it. It is being done.
Take Julius, for example, who lives at Jeremiah House, a successful
housing facility for homeless adults in the shadow of this Capitol.
Earlier today the gentleman from Texas (Mr. Sessions) and I visited
Jeremiah House and spoke to Julius. Julius lived on the streets and in
abandoned cars for more than 10 years as a result of drug and alcohol
addiction. Today Julius lives at the Jeremiah House, and with the help
of his family, he is involved in a substance abuse program, regularly
attends church, is enrolled in engineering courses at the University of
the District of Columbia, and hopes to receive his Bachelor's degree
next year. This, Mr. Speaker, is success.
Although the Federal Government has more than doubled spending on
programs designed to address homelessness in the 1990s, hunger and
homelessness continue to increase. Families with children comprise more
than one-third of today's homeless population. More than 75 percent of
homeless adults struggle with mental illness, substance abuse or
chronic illness. And at least 25 percent of homeless men are veterans
of our armed forces. How can we tolerate their plight? What can be more
heart-wrenching than stories of those who fought for our freedom only
to find themselves faced with living on the streets when they get back
home?
Mr. Speaker, we must ask ourselves one simple question: Do we accept
the status quo as inevitable, or must we work harder to find better
ways to get better results? Unless we are willing to follow the lead of
too many Third World countries where the homeless die alone on streets
every day, clearly we must do a better job.
Today we begin to move away from the temporary Band-Aid type
solutions of the past. Today we refocus our efforts on preventative
strategies and permanent solutions to homelessness. Today we recognize
the successes of neighborhood partnerships that link permanent shelter
with a strategy of continuing services designed to give the homeless
the best chance at self-sufficiency.
This bill, H.R. 217, the Homeless Housing Programs Consolidation and
[[Page H714]]
Flexibility Act, will provide the 21st century framework to restore
hope to hundreds of thousands of unsheltered Americans. It will give
those on the streets a real chance at reconnecting with society, their
friends and their family.
Our legislation consolidates the 7 existing homeless housing programs
under HUD into a single, flexible funding stream for States and
communities. Decision-making is given to communities and States, and
moves away from centralized planning and the Washington-knows-best
mentality.
Homelessness, Mr. Speaker, should not be hopelessness. In our bill,
some funding is reserved for a permanent housing competitive grant
process to transition toward long-term solutions to homelessness. Last
year HUD spent only 10 percent of homeless assistance funds to build
permanent housing. Let me be clear: Only 10 percent of Federal homeless
assistance last year was spent for exactly what the homeless
desperately need, homes.
We cannot afford to let bureaucratic barriers stand in the way of
proven solutions and the hope that they bring. Our bill requires all
Federal departments and agencies to coordinate homeless assistance. In
this way, we eliminate the wasteful duplication of resources, close the
gap in services and confront homeless issues holistically.
Finally, our legislation encourages partnerships among nonprofit
developers, faith-based groups and service agencies to link permanent
housing with a continuum of services. By addressing the core issues of
homelessness through a concerted community effort, we give the homeless
a real chance to reclaim their stake in society and improve their
quality of life.
Mr. Speaker, today this House has the unique opportunity to advance
not only common-sense public policy, but also policy with compassion
for those without the most basic of human necessities, adequate
shelter. Government should be about funding programs that work, that
are locally controlled, and that empower our most vulnerable citizens.
Too often the homeless are trapped in a revolving door from shelters,
to the streets, emergency rooms, treatment centers and back again. Our
work here today will help break that cycle and begin the process of
ending homelessness in America.
Mr. Speaker, I would also mention the committee's efforts to
consolidate the homeless assistance programs are strongly supported by
a variety of organizations, including the Vietnam Veterans of America;
the U.S. Conference of Mayors; the Association of Local Housing Finance
Agencies; the National Association of Counties; the National Community
Development Association; LISC, the Local Initiatives Support
Corporation; the National Alliance to End Homelessness; the National
Law Center on Homelessness and Poverty; and many, many others. Mr.
Speaker, I include for the Record letters of support from these
organizations, as follows:
Supporters of H.R. 217
Vietnam Veterans of America, Inc.
U.S. Conference of Mayors
The National Alliance to End Homelessness, Inc.
National Association of Counties
National Community Development Association
Association of Local Housing Finance Agencies
Local Initiatives Support Corporation (LISC)
Corporation for Supportive Housing
National Law Center on Homelessness and Poverty
____
Vietnam Veterans of America, Inc.,
Washington, DC, February 23, 1998.
Hon. Rick Lazio,
House of Representatives, Rayburn House Office Building,
Washington, DC.
Dear Chairman Lazio: On behalf of the membership of Vietnam
Veterans of America (VVA), I write to strongly support
passage of H.R. 217, the Homeless Housing Programs
Consolidation and Flexibility Act. We feel that the veterans
provisions within this bill will greatly assist veterans who
are homeless. By increasing access of veterans community-
based homeless assistance providers to the HUD homeless
funding process, this legislation can facilitate an effective
federal response to the national tragedy of disproportionate
numbers of veterans among the homeless population.
Homelessness in America is a terrible tragedy. The
prevalence of veterans among the homeless population is an
even more poignant statement about this tremendous loss of
human potential and productivity. As we have discussed with
you and your staff, even though widely accepted statistics
and analysis show that some 30 percent of the homeless
population are veterans. HUD has not been successful in
ensuring that it's nearly $1 billion in annual homeless
assistance spending appropriately targets these unique needs.
In prior administration's and occasionally even among the
current cadre of federal officials, HUD has pointed the
finger at VA, essentially saying. ``Veterans are their
responsibility.'' But such a policy perspective fails to
realize that VA--as a hospital and benefits system--was never
designed to treat the complexities of homelessness. While the
VA, in recent years, has made tremendous efforts to help
veterans who are homeless, the fact remains that VA is not in
the housing business. HUD is the federal agency that deals
with homeless assistance and housing programs.
VVA has worked on the homeless veterans issue for many
years. And while we are heartened to see more attention
devoted to the issue, it is disconcerting that current
efforts to address homelessness do not met the specific needs
of veterans. The plight of homeless veterans is often
misunderstood and overlooked. If general homeless assistance
programs--which HUD supports--were effectively rehabilitating
veterans, we would not expect to see the disproportionate
numbers of veterans within the homeless population. This is
why it is so critical that programs which target these
veterans' unique needs and maximize their rehabilitation
potential are nurtured and supported with federal funding.
Veterans are a ``federal'' responsibility--and not just a VA
responsibility.
VVA feels very strongly that the veterans provisions of
H.R. 217 will help to combat the specific and unique causes
of homelessness among veterans. We strongly urge the House of
Representatives to pass this bill, and we further urge the
Senate to enact H.R. 217. Thank you for your and the
subcommittee's work on behalf of homeless veterans.
Sincerely,
George C. Duggins,
National President.
____
March 2, 1998.
Hon. Rick Lazio,
Chairman, House Subcommittee on Housing and Community
Renewal, Rayburn House Office Building, Washington, DC.
Dear Mr. Chairman: We write to endorse your efforts to move
H.R. 217, the ``Homeless Housing Programs Consolidation and
Flexibility Act'' through the House of Representatives.
Consolidation of the McKinney Act's homeless housing programs
is an idea whose time has come. In a time when the Department
of Housing and Urban Development is undergoing a drastic
downsizing the last thing it needs is to run a series of
competitions for homeless housing funds. Instead, communities
should receive homeless housing funds via a block grant, as
generally H.R. 217 would do, so that they can use the funds
to meet locally identified homeless housing and service
needs. A number of members have advised us that the current
competitive method of awarding McKinney Act funds often has
the effect of denying funding to their top priority projects.
Creation of a homeless housing block grant and its
continuum of care will give communities the certainty of
funding they need to undertake comprehensive, long-term
strategies to address homelessness.
Although we don't support all of the provisions in H.R.
217, we believe it essential that the legislative process
move forward. Passage of this bill will provide the momentum
to encourage the Senate to act on a homeless block grant.
Once the legislation moves to a House-Senate Conference
Committee we will seek modification to several of the
provisions in H.R. 217.
Mr. Chairman, we applaud your leadership on this important
issue.
Sincerely,
Association of Local Housing Finance Agencies.
National Association of Counties.
National Community Development Association.
U.S. Conference of Mayors.
____
The National Alliance
To End Homelessness, Inc.,
Washington, DC, February 23, 1998.
Hon. Rick A. Lazio,
Chairman, Subcommittee on Housing and Community Opportunity,
House of Representatives; Washington, DC.
Dear Mr. Chairman: Over the past several years, we at the
Alliance have deeply appreciated your commitment to improving
the way in which federal homeless assistance is delivered
through the HUD Homeless Assistance Grants. This critical HUD
program must address the complex set of challenges that face
an extremely diverse homeless population, and it must also
respond to the equally complex set of needs of a diverse
delivery mechanism. H.R. 217 addresses both sets of needs and
challenges and provides a valuable blueprint for re-tolling
homeless assistance to achieve the maximum benefit for
homeless people.
The National Alliance to end Homelessness believes that any
federal homeless assistance program should adhere to the
following principles:
[[Page H715]]
End homelessness for as many people as possible through the
provision of permanent housing;
Ensure decent ``shelter'' for those experiencing
emergencies and for whom permanent housing is not provided;
Provide flexible funding so that local issues can be
addressed, but ensure nonprofit involvement and provide
rigorous federal monitoring and oversight to overcome the
problems that arise from politicization at the local level;
Increase the motivation and capacity to deal with the
problem at the state and local levels;
Ensure that any assistance delivered has a direct and
measurable benefit to homeless people, and that the primary
thrust of this benefit is their achievement of stability in
permanent housing.
H.R. 217 specifically addresses these principles. It
reverses the recent trend toward more funding of services and
temporary solutions by setting aside funding for permanent
housing. It establishes a critical priority for housing for
people with chronic disabilities. It targets more resources
to the problem by including an authorization level of one
billion dollars. It includes local boards to determine how
funds will be spent and to monitor their effectiveness. It
targets assistance to nonprofit organizations. It addresses
the difficult problems of funding services and providing a
predictable source of funding to local areas for emergency
and transitional assistance. In short, H.R. 217 moves us
closer to a system that addresses the primary goal of ending
homelessness both for individual homeless people and
families, and for the nation.
We at the Alliance have deeply appreciated your willingness
to work with us, and to listen to our concerns and those of
our members, as you have developed the concepts contained in
H.R. 217. We know personally of your commitment to provide
real assistance to homeless people. We look forward to
continuing to work with you as we collectively improve the
homeless assistance system.
Sincerely,
Nan Roman.
____
Local Initiatives Support Corp.,
New York, NY, February 23, 1998.
Hon. Rick Lazio,
Chairman, Subcommittee on Housing and Community Opportunity,
Rayburn House Office Building, Washington, DC.
Dear Mr. Lazio: I am writing on behalf of the Local
Initiatives Support Corporation (LISC) to applaud your
recognition within H.R. 217, the Homeless Housing Programs
Consolidation and Flexibility Act, of the importance of
permanent housing to end homelessness by giving our
communities' most frail citizens the foundation they need to
live healthy, productive lives. As you know, LISC has been
working with community development corporations (CDCs) since
1979 providing the necessary tools for them to develop
affordable housing and offer the range of social services
that revitalizes and reinvigorates communities.
Among a range of activities, LISC provides financing and
technical assistance for the development of affordable
housing for homeless and disabled persons requiring
supportive services. Through the syndication of Low Income
Housing Tax Credits in partnership with the National Equity
Fund (NEF), we are able to leverage substantial private
sector investments for these projects. But this private
investment is possible only if long term project subsidies
are available to fill the gap between the operating costs and
what homeless people can afford to pay in rent. H.R. 217's
dedication of national resources for the development of
permanent housing will ensure that CDCs can continue to be
part of the solution of homelessness in their communities.
LISC also commends the increased $1 billion authorization
level of H.R. 217 which acknowledges the need for additional
resources to combat homelessness. Federal homeless funds
shaped by a vision of creating permanent housing solutions
are a significant step towards helping our homeless neighbors
reclaim a stake in community life.
Sincerely,
Paul S. Grogan,
President.
____
Corporation for
Supportive Housing,
New York, NY, February 28, 1998.
Representative Rick Lazio,
Chairman, Subcommittee on Housing and Community Opportunity,
Rayburn House Office Building, Washington, DC.
Dear Chairman Lazio: I write on behalf of the Corporation
for Supportive Housing (CSH) to support H.R. 217, The
Homeless Housing Programs Consolidation and Flexibility Act
of 1997. While CSH has objections to certain provisions of
the bill, which I have articulated to you and repeat below,
it remains clear that H.R. 217 would both assure expansion of
permanent solutions to homelessness, and enlist state and
local governments as real partners of the federal government
in the battle to end homelessness nationwide.
CSH is a national nonprofit intermediary dedicated to
expanding the quantity and quality of supportive housing
available to people who are homeless or at risk of becoming
so. The supportive housing model combines permanent, low
income housing with on-site mental health, substance abuse,
employment and other support services which help the most
vulnerable homeless individuals to regain control of their
own lives and a stake in the life of their communities. Over
the past decade, community based nonprofits have demonstrated
that supportive housing is an effective and cost-efficient
solution to homelessness. It both provides residential
stability for even the most disabled homeless individuals
(federal and state government commissioned studies have
confirmed tenant retention rates exceeding 75%) and enables
those individuals to reduce the frequency and magnitude of
their encounters with such costly, emergency driven public
systems as psychiatric hospitals, emergency rooms, detox
facilities, and jails. Indeed, for the most vulnerable of
homeless individuals with special needs such as mental
illness, chronic health conditions, or other disabilities,
supportive housing is the only demonstrated permanent
solution to chronic homelessness.
Several aspects of H.R. 217 merit special mention. First,
H.R. 217 recognizes permanent supportive housing as an
effective, sustaining and cost-efficient solution to
homelessness by proposing to target a percentage of
authorized funding (25% growing to 30%) for development of
permanent housing. This permanent housing set aside ensures
both that sufficient funds can be concentrated at the local
level to develop new permanent housing, and that a steady
stream of federal funds will remain available for supportive
housing providers. Critically, by specifically including
long-term rental assistance among the eligible activities for
permanent housing funds, H.R. 217 guarantees maximal
leveraging of federal homeless assistance funds by state and
local governments, philanthropy, and private investors. (For
example, private investors in the Low Income Housing Tax
Credit can typically provide about one-half of the amount
needed for development where long term federal subsidies are
in place. HUD research confirms the broader phenomenon. For
example, HUD's 1994 report to Congress stated that every
McKinney Shelter Plus Care dollar leveraged $2 in local and/
or private services funding and every McKinney Section 8 Mod/
Rehab dollar leveraged $1.50 in non-federal development
dollars.) H.R. 217 also provides for a range of long term
rental assistance options, thereby supplying the critical
linchpin for creating permanent and sustaining solutions to
homelessness. Such targeting of limited federal funds to an
identified need, where the federal investment truly partners
with that of other public and private entities, embodies the
best in federal policymaking.
Second, I strongly endorse your call in H.R. 217 for
authorization of federal homeless programs at $1 billion.
This authorization level recognizes that homeless care
providers, including those who operate permanent supportive
housing, require sufficient resources to address the needs of
the homeless if this nation is to end homelessness, which
began over a decade ago as a ``crisis'' but sadly remains an
enormous and costly problem.
Third, I must reiterate CSH's primary objection to H.R.
217, namely, the block granting of 70% of funds under the
consolidated McKinney programs. We believe that: (1) block
granting will spread funds too thinly among grantees; and (2)
with the addition of a permanent housing set aside and better
local match requirements. HUD's current Continuum of Care
selection process would satisfactorily distribute homeless
assistance funds and do so in the locally-driven fashion that
block granting strives to achieve. Despite this reservation,
CSH recognizes that H.R. 217 constitutes a major step forward
in supporting innovative, cost-efficient strategies to end
homelessness through federal homeless assistance programs.
Accordingly, we support its enactment into law.
Thank you for your consideration of this letter.
Sincerely,
Julie Sandorf,
President.
____
National Law Center
On Homelessness & Poverty,
Washington, DC, February 27, 1998.
Hon. Rick Lazio,
Chairman, Housing Subcommittee, House Committee on Banking
and Financial Services, Rayburn House Office Building,
Washington, DC.
Dear Mr. Chairman: I write to thank you for your efforts to
reauthorize the Stewart B. McKinney Homeless Assistance Act
programs that are administered by the U.S. Department of
Housing and Urban Development. These programs have provided
vitally needed assistance, including emergency shelter and
transitional housing, to thousands of homeless Americans.
We appreciate your effort to authorize a level of funding
for the program above the level of last year's appropriation.
While $1 billion unfortunately is still not adequate to meet
the need, it would certainly be a step forward.
It is critically important that the McKinney programs be
reauthorized. Thank you again for your efforts and
commitment.
Sincerely,
Maria Foscarinis,
Executive Director.
Mr. LAZIO of New York. Mr. Speaker, before I reserve the balance of
my time, I would like to express once again my appreciation to the
subcommittee's ranking member, the gentleman from Massachusetts (Mr.
Kennedy), for his help in moving this legislation forward. My good
friend and colleague has spent much of his public and
[[Page H716]]
private life helping the less fortunate, particularly the homeless,
realize a better way of life.
I should also recognize the efforts of the gentleman from Washington
(Mr. Metcalf) on behalf of homeless veterans, and extend my gratitude
to the gentleman from Minnesota (Mr. Vento) for his unwavering support
for reform throughout this process and for his work for many years on
this important issue.
Mr. Speaker, I reserve the balance of my time.
Mr. KENNEDY of Massachusetts. Mr. Speaker, I yield myself 5 minutes
and 40 seconds.
First and foremost, let me just say very briefly how much I
appreciate the kind words that the chairman of the Subcommittee on
Housing and Community Opportunity, the gentleman from New York (Mr.
Lazio), has expressed.
I think that he, in fact, does deserve a great deal of credit for
bringing a bill that had overwhelming support. I think it passed our
committee by a vote of 35 to 5. It is a very rare occurrence in the
subcommittee or the full Committee on Banking and Financial Services.
I think it is largely due to the sensitivity he showed and the
leadership he showed in making compromises on this legislation and
making certain that all parts of the country are treated equitably, and
with the recognition of the fact that while we want to get government
bureaucracy out of the way, we also want to preserve and make certain
that programs that do effectively move people out of homelessness and
into permanent housing and permanent jobs in fact get the attention and
the credit that they deserve.
So I want to just say how much this demonstrates that when we choose
to work together, I think a lot can be accomplished by this Congress.
I also want to just express my appreciation as well to the gentleman
from Minnesota (Mr. Vento), who spent years in the Congress leading
this fight. When I first got to the House of Representatives, going on
almost 12 years ago, the gentleman from Minnesota (Mr. Vento) was a
leader on the homelessness bill at the time.
We were passing, at that time, the McKinney Act, which was an
appropriate piece of legislation for a problem that needed to be
addressed as a result of the efforts of Mitch Snyder and a number of
other people.
The fact is that this bill I think shows a new kind of recognition of
some of the programs that work and some of the needless bureaucracy
that has evolved around the original McKinney Act. And I think the
gentleman from Minnesota (Mr. Vento) should get enormous credit.
It is not just about credit. And I know the gentleman from New York
(Mr. Lazio) would be the first to admit that this is an issue of how we
got to a point where we are appropriating hundreds of millions, if not
a billion dollars for fighting homelessness in this country, is really,
in my opinion, a tragedy. It is a tragedy that has largely come about
as a result of government policies.
There was a time when we did not find a lot of homeless Americans.
You could travel the streets of every major city in America and not see
thousands and thousands and thousands of homeless people.
The way we got to so many homeless people in America is two ways.
First and foremost, we, as a policy, decided that we did not want to
house our mentally ill in these concentrated facilities where so many
horrific things were being done to them. So we said we were going to
close down those facilities.
Then we were going to build housing in neighborhoods to house the
mentally ill, the mentally disturbed, those with drug and alcohol
abuse. The fact is, what we did as a Nation is, we closed down the
facilities but we never built the housing in the neighborhoods.
The second piece of this was that we built in 1980 over 300,000 units
for the poor, as a Federal Government, 300,000 housing units. We spent
over $30 billion on the housing budget in 1980 dollars. Today we have
dramatically cut the amount of money that we are spending on affordable
housing.
I want to appreciate the fact that in this particular legislation the
gentleman from New York (Mr. Lazio) and the gentleman from Iowa (Mr.
Leach) have brought up our funding in this bill from $803 million to
over a billion dollars. That is a step in the right direction.
But I would point out that the truth of the matter is that the first
thing that happened 4 years ago when the Republicans took over the
House of Representatives is that we saw the homeless budgets in this
country cut by 25 percent. We saw the overall housing budgets in
America cut by 25 percent. That was only after the compromises had been
reached.
If we do not build housing for the poor, and the country has more and
more people, the value of the existing housing rises, the poor do not
get any richer, so they cannot afford it. What happens is we end up
dumping people out on our streets.
This is an important piece of legislation. I do very much commend the
gentleman from New York (Mr. Lazio) for his work on trying to get this
legislation passed and write it in such a fashion that he has gotten
such broad support for it. We do appreciate the gentleman's leadership
on this.
But we need to work together to make sure that this country
recognizes that if we are going to provide billions of dollars to the
Pentagon, if we are going to provide billions of dollars in terms of
the aid programs that we are currently involved with, that there is a
Third World right here in America that also needs to be provided with
the necessary resources in order to provide them with basic and
affordable housing and health care and education.
{time} 1445
If we want to get these folks that need homeless funding out of
homelessness, we have to provide them with housing and jobs.
I would just say that in terms of this particular legislation, I do
want to recognize that while the funding has increased, and I know the
gentleman from Iowa (Mr. Leach) has agreed to sign a letter to the
Committee on Appropriations asking for the full $1 billion worth of
funding, that we have set aside 30 percent of the funding for permanent
housing, that we have instituted much greater local control and local
flexibility as a result of the chairman's intent, and we have also
provided some needed veterans' provisions in this legislation.
Mr. Speaker, I would, in closing, again like to just say that we need
to continue to provide additional funding for the homeless. We can
provide all the programs, but if we do not get the money out to the
people that need it, it will all be a lot of words and no housing.
Mr. Speaker, I want to thank the chairman of the housing committee,
the gentleman from New York (Mr. Lazio), for his leadership, and look
forward to working with him as the legislation moves through the
process.
Mr. Speaker, I reserve the balance of my time.
Mr. LAZIO of New York. Mr. Speaker, I yield 2 minutes to the
gentleman from Washington (Mr. Metcalf.)
Mr. METCALF. Mr. Speaker, I rise in support of H.R. 217 and its goal
of giving local communities greater flexibility in reducing
homelessness. I was concerned about homeless veterans before I arrived
in Congress. I am pleased now to be able to do something for them.
Over the past 3 years, I have introduced legislation to help veteran
advocacy groups compete for Stewart McKinney funds. In 1996, HUD funded
1,100 projects for a total of $713 million. Of the projects funded,
only 48 projects equaling $25 million were designed primarily for
homeless veterans. That is only $25 million for homeless veterans out
of $713 million. Yet the number of homeless veterans is estimated to be
20 to 30 percent of the homeless population.
We need more help for homeless veterans. H.R. 217 includes an
amendment that I offered with the gentleman from Massachusetts (Mr.
Kennedy) to give veteran advocacy groups an opportunity to participate
in local advisory boards. These boards will create and coordinate the
community's housing plan. In addition, homeless veterans will be
considered a special needs population, which makes them one of the
targeted populations for services in housing. Lastly, this amendment
requires better reporting from HUD and its grantees concerning
veterans.
I want to thank the gentleman from Massachusetts (Mr. Kennedy) and
the subcommittee chairman, the gentleman from New York (Mr. Lazio), as
[[Page H717]]
well as the gentleman from Iowa (Chairman Leach) for their willingness
to work with me to include veterans' provisions in this bill,
provisions that will help get homeless veterans off the street. These
are not just empty promises, but meaningful changes in helping local
communities serve their homeless veterans.
Mr. KENNEDY of Massachusetts. Mr. Speaker, I yield 5 minutes to the
gentleman from Minnesota (Mr. Vento.)
Mr. VENTO. Mr. Speaker, I thank the gentleman for yielding me time.
Mr. Speaker, I want to commend the ranking member, the gentleman from
Massachusetts (Mr. Kennedy), and the subcommittee chairman, the
gentleman from New York (Mr. Lazio), for their support of this and
their leadership in bringing us together to support H.R. 217, which is
a very good bill, which obviously authorizes more dollars, changes some
of the policies and redirects and streamlines the law to meet the needs
of the homeless across this Nation.
Who are the homeless? The homeless are a group of individuals today
that 20 years ago, when we look back into our communities and byways
and rural areas, urban, were not the same population. We always have
had, sadly, I think some that are chemically addicted homeless, and
that is a problem a smaller number of the homeless. But today we have,
as my subcommittee chairman has mentioned, the gentleman from New York
(Mr. Lazio), we have nearly half a million people that are homeless.
The roots the source of such homelessness has many sources. In fact,
the homeless are very often people that have jobs. They very often are
women. Very often they are children that are homeless today.
So it recognizes, sadly, that in 1998, with the highest home
ownership in history of our Nation, nearly 66 percent of the people own
their own homes, but no one of us live on the average; that today in
our society there is a great vulnerability in terms of our being able
to fall down and lose out in terms of becoming an economic or social
casualty; that today in our society we are very isolated, and the
network of support in terms of family and friends and others that
historically had been such a great source of help to many that would
fail is most often not present, too many americans today are
vulnerable.
So we come back with these fed. homeless programs, and the nature of
this, McKinney program, which I have worked so hard on with many of my
colleagues over these years, is one in which we are trying to build on
the local governments and the nonprofits and private sector effort, to
establish and maintain a partnership.
This is not a 100 percent funding from Washington. In fact, it is
very little funding from Washington to deal with this problem compared
to other efforts. We are proposing, and I hope we do spend, the $1
billion that is authorized in this measure. Local governments,
nonprofits, the people we represent, the volunteer groups, are spending
tens of billions of dollars to meet this housing problem each year
across this nation.
The homeless, as I said, they are working, and they are entitled to a
lot of the benefits. But, unfortunately, many benefits are attached to
shelter to an address. If a child is homeless, they deserve an
education, they deserve the funding from the city and State. If they
have a health problem, they deserve the benefits that are associated
with Medicare if they are eligible or Medicaid if they are eligible.
They deserve the opportunity for job training and other programs.
We are trying to provide such programs and must this together with
this McKinney Act, which, incidentally, has always been a bipartisan
effort. Myself and Chalmers Wylie from Ohio initiated this bill in
small way representative; Ed Boland, had a different piece in the
appropriation process, the FEMA dollars that are in here represent his
initial efforts, and that is reauthorized in this bill and that is a
great program.
The fact is that, of course, we named it when we brought it
altogether under one umbrella after our dear colleague, our deceased
colleague, Stewart McKinney from Connecticut, a good Republican and a
good friend and a good advocate for people that have problems and need
housing in this Nation.
I hope that with this bill, we can reignite some of that spirit of
working together in terms of housing that has alluded us, because we
have serious housing problems in this nation. As has been indicated,
part of this is because we have not followed through when we
deinstitutionalized, a good thing to do, to take apart those
institutions.
My State of Minnesota especially has had problems because we were the
first in the Nation to institutionalize and deal with many of the
problems, but we did not follow through with the community resources
that are necessary to meet the needs of people being mainstreamed back
into our communities; neither housing nor the social services.
So we have a great opportunity here with this McKinney program to
build a new framework, to draw on the others that have
responsibilities, not just in terms of the housing programs that
emanate in Washington or locally, but to draw on the social service,
health nutrition education and jobs programs that are supposed to be
there to support the homeless.
There are some good changes in this bill. Frankly, the type of
categorical programs which provided many of the ideas, we wanted to see
whether these programs worked and many of them did work. Now we will
have a homeless plan prepared by the communities that will give us some
direction, broad input and a good policy path with flexibility.
Frankly, I think we need the permanent housing in this measure. We
need to push the other social service agencies and others that have
resources to channel their dollars into the needs of the homeless,
because we cannot do it alone, HUD and these McKinney program are just
not sufficient in funding or capacity.
The local governments and the nonprofits, are working on overload,
they are working on overload, they have too much being placed on them
these days, and need the type of support we have proposed here. But we
have to do it in a partnership, which we are trying to do in this bill,
and which I know can and does work. The Interagency Council on
Homelessness is reestablished in this bill, trying to get our Federal
agencies to work collaboratively and cooperatively together.
Mr. Speaker, it should be clearly understood that this program the
McKinney funding has helped and transitioned many literally 100,000 of
homeless back into the mainstream of our society, the problem is that
those falling between the cracks of our social nets and onto the
streets continues and the McKinney law and act is more needed today
that ever.
This is a good bill. I hope my colleagues all vote for it and it
passes this House with a resounding yes vote.
Mr. Speaker, as I rise today in support of the Homeless Housing
Programs Consolidation and Flexibility Act, I want to recognize the
Democratic and Republican staffs for their work in building a
compromise bill for us that has been helpful and permits us to be here
today that will authorize a billion dollars annually for HUD homeless
assistance through FY2002. I testified in front of the Subcommittee on
Housing last June in favor of some changes to the Chairman's bill, H.R.
217--changes that would incorporate some of the policies embodied in my
McKinney reauthorization legislation, H.R. 1144. I am pleased to note
for the Members here this afternoon that many modifications and
improvements have been made to address my concerns, the concerns of Mr.
Kennedy, HUD and others.
Members may be aware that as an original author of the McKinney Act
in 1987 and sponsor of the legislation to assist the homeless since
1982, I have an intense interest in how we restructure the HUD McKinney
programs. I look forward to continuing to work with the Chairman to
move this legislation forward and would point out that this measure has
always been a bipartisan effort: First, Congressman Chalmers Wylie of
Ohio and myself in 1981; second, honoring Congressman Stewart McKinney
in 1987; and third, restructuring the programs in 1994 with
Congresswoman Roukema. Today, we continue in that vein with this bill,
H.R. 217, which authorizes a significant increase over this year's
budget--an increase in outlays of $121 million in FY1999, $195 million
in FY2000, $364 million in FY2001, $667 million in FY2002, and $784
million in FY2003. Hopefully, we will follow through with the
appropriations that would provide these specific increases that will
total a billion dollars a year to assist people who are homeless.
For the record, let me briefly recite some of the history behind the
consolidation of McKinney programs. Almost since their inception, there
were calls for simplification of the HUD
[[Page H718]]
McKinney programs and for a change from the competitive nature of the
programs to a formula allocation block grant. Attempts to alter the
nature of the funding allocation, however, were not successful in
Congress until 1994, in part, because of the opposition of many
Members, including myself, on the Banking Committee who felt strongly
that block granting would spread the limited McKinney dollars a mile
wide and an inch deep and the fact that the programs and innovative
ideas ought to have an opportunity to demonstrate their effectiveness.
Moving to a block grant earlier essentially would have defunded these
programs.
In 1994, however, we began to work on a bipartisan basis with the
special efforts of the Administration to restructure the HUD McKinney
programs into a block grant with some important features. We were
successful in passing that rewrite in the omnibus housing bill that was
approved by the House, but never finalized into law. Key among those
were two features: One a trigger point for reverting to competition so
that if appropriations were to be too low, the funds would not be
piece-mealed beyond the point of usefulness to entitlement communities.
Two, the legislation maintained permanent housing through the Section 8
SRO program as a separate and distinct program. Such a separate
permanent housing component creating SRO or other housing, is necessary
for production that is less likely to take place in a formula
allocation because of the higher capital needs and recurring costs on
an annual basis.
In this measure before us, H.R. 217, a couple of important
compromises and changes were made through the legislative process from
my standpoint. First, H.R. 217 maintains a national competition for the
permanent housing activities which include activities to construct,
rehabilitate, or acquire permanent housing structures. These activities
can also include the capitalization of a dedicated project account from
which long-term assistance payments, such as operating costs or rental
assistance, can be made in order to facilitate permanent housing for
the homeless. In addition, the Committee agreed to allow up to 35% of
the funds available for the competition to be used as if under section
441 of the McKinney Act as in effect on October 31, 1997. That is,
Section 8 Moderate Rehabilitation for SRO housing can still be produced
under the national competition for the McKinney permanent housing
program with a cap of no more than 35% of the funds. This was included
through a successful amendment that I offered in the Committee and I am
appreciative of the support of the Chairman for such amendment. Every
study and statistic I've seen on the topic of homelessness is related
to the lack of affordable housing and the need to establish permanent
housing for homeless people.
As before, the Committee specifically chose not to consolidate
permanent housing activities into the flexible block grant. First and
foremost, in providing a separate competitive funding mechanism for
these programmatic activities, the Committee is assured that housing
dollars are producing housing. Secondly, the ebb and flow of funding
needs for permanent housing development is such that communities may
need large funding amounts in one year and little or nothing in other
years. Conversely, if funds were to be allocated for permanent housing
under a block grant, many entitlement jurisdictions would never receive
sufficient funding to engage in permanent housing projects with or
without supportive services because the intense up-front funding needs
for permanent housing would completely deplete the formula allocation
of a jurisdiction in one funding year. A national competition that
still assures projects are tied to local needs and plans will
facilitate a more effective allocation of housing resources.
Second, the bill envisions that to meet the matching requirements for
the federal funds that a community can choose between a 1:1 match that
allows volunteer services to be counted, or a 1:2 match that does not
permit volunteer services. Thus this measure incorporates a 1:1 match
that I strongly support. It will continue to allow non-profits to use
important volunteer services as match. We should, in my judgement,
encourage volunteer participation and recognize its value.
Thirdly, the bill includes a reauthorization of the FEMA Emergency
Food and Shelter program that is authorized in Title III of the
McKinney Act. This is a proven and popular program in the Banking
Committee's jurisdiction that needs to be reauthorized, but doesn't
require programmatic changes. This is a tremendous program that
continues to provide great help nationwide for shelter and emergency
meals. I would hope we could in the future work together to increase
the level of funding for this key program that works so well with the
national and local charities.
Fourth, the bill re-empowers the Interagency Council on the Homeless,
the chief interagency body for federal assistance for persons who are
homeless. It calls for rotating chairs of the Council and sets aside
money from the overall McKinney Title IV appropriation in order to fund
the Council. This is imperative in order to facilitate deliberations,
coordination and needed improvements to our homeless assistance
programs.
Mr. Speaker, we began to work on a bipartisan basis with the special
efforts of the Clinton Administration to restructure the HUD McKinney
programs into a block grant in 1994. Today we pick up on that effort
and will hopefully move the idea forward toward the objective. H.R. 217
consolidates most of the programs, affords citizen and community
involvement in the planning process, and maintains a competition for
the permanent housing component.
I recognize the new concerns of the Department of Housing and Urban
Development, and hope that the discussions around our policy
differences will continue to strengthen the programs as we work toward
enactment of a McKinney reauthorization. I want to comment the
Secretary and his staff for their vision and hard work toward improving
the administration of the McKinney programs as they exist today so that
communities and persons who are homeless are better served. These
McKinney programs work by being pro-active. Unfortunately, the number
of homeless persons: men, women and children, continues to mount.
Hopefully the root causes of homelessness, both economic and social,
will be addressed to correct this crisis. But until that occurs to a
greater extent, we must assist and reinforce the local governments and
non-profit sector that attempts to cope and meet the needs of people
who are homeless in our nation. This reauthorization of the McKinney
Act will do that.
I again commend the Chairman for working with us on this bill. While
the bill may not be the bill I would construct if left to my druthers,
overall it is more than acceptable to me and I encourage Members to
support H.R. 217 on passage.
Mr. LAZIO of New York. Mr. Speaker, I yield 3\1/4\ minutes to my
friend, the gentleman from Delaware (Mr. Castle), the distinguished
former Governor of the State of Delaware and a member of the Committee
on Banking and Financial Services.
Mr. CASTLE. Mr. Speaker, I thank the gentleman for yielding me this
time.
Mr. Speaker, I very much appreciate the opportunity of speaking to
this. I think what the gentleman from New York (Chairman Lazio) and the
gentleman from Massachusetts (Mr. Kennedy) have done on this, as well
as the gentleman from Massachusetts (Mr. Kennedy) and the gentleman
from New York (Mr. LaFalce), I think the work on this has been
tremendous. It is strong leadership indeed for a compassionate,
imaginative and common sense style reform legislation.
Under the current system, about three-quarters of Federal homeless
funds are spent on emergency homeless shelters in supportive services.
The bill in front of us, H.R. 217, encourages communities to focus HUD
homeless funds on affordable housing, which will give homeless persons
a chance to become productive members of our society.
To a homeless person, permanent housing means safety and security
that cannot be found in homeless shelters. Safety and security are
important foundations on which a homeless person can rebuild his or her
life.
For too long, HUD has been the 911 all-purpose agency for homeless
issues. In the course of trying to provide services HUD should not be
providing, HUD has overcommitted its McKinney Act homeless funds. This
unbalanced distribution of funds has left longstanding successful
homeless programs without the funds to operate. It has happened in
every State to one degree or another, but let me share with Members
Delaware's experience.
Under the current system, the McKinney homeless funds are distributed
through a national competition. As was the case for Delaware in fiscal
year 1998, if an applicant fails to meet the cutoff point, the State
and all its homeless programs must scrape to find funds to operate that
year.
The Ministry of Caring is a Delaware nonprofit homeless provider that
raises half of its support from private sources and relies on State and
Federal funds to provide the remainder. In Delaware the name ``Ministry
of Caring'' is synonymous with quality, compassionate housing and
services for the homeless.
The Mary Mother of Hope House and Samaritan Outreach Program are two
homeless programs the Ministry of Caring may have to close this year,
because its application fell two points
[[Page H719]]
shy of HUD's cutoff in last year's grant competition due to a drafting
error over which the Ministry of Caring had no control.
While some may think a national competition for grant money
distributes homeless funds to the most deserving programs, the fact is
that it produces tremendous inefficiencies. Each year, a homeless
program faces the dilemma of whether it will receive a lot of Federal
funds or none at all. This prevents these programs from engaging in
efficient, long-term planning, and encourages them to overstate their
need.
Furthermore, as was the case with the Ministry of Caring, if HUD
spent funds in the past to help build houses for the homeless, its
investment and your tax dollars go to waste when there are no funds to
operate the program. With H.R. 217, each State is assured a minimal
level of funding each year the programs can take into account when
planning for the long run. At the same time, H.R. 217 reserves 25
percent of the McKinney funds for a national competition, so those
programs which are most deserving can still compete for additional
funds.
This is just another example of how the Homeless Housing Programs
Consolidation and Flexibility Act takes the best features from existing
programs, and eliminates wasteful incentives and duplicity in the
current system. I encourage my colleagues to support this legislation.
Mr. KENNEDY of Massachusetts. Mr. Speaker, I yield 1\1/2\ minutes to
the gentleman from Ohio (Mr. Traficant).
Mr. TRAFICANT. Mr. Speaker, I support the bill and I agree there are
working poor, women and many people who are now homeless. I want to
remind the Congress of the United States that there are veterans who
are homeless as well.
I passed an amendment to H.R. 2 that requires that a housing
counseling 45 day notice be given by the banks when a delinquency rate
is met, and I wanted to have that put in this bill. But I have the
assurances of the chairman that H.R. 2 and my language that would
require that VA loans and veterans would also get that 45 day notice,
be kept in that bill.
Mr. Speaker, I want to remind Members that money itself will not
solve the homeless problem. We must leverage private sector money and
we must move towards competitive employment opportunities for
underemployed people.
It is not just destitute sick people on our streets. Many of them are
underemployed and do not have an opportunity for gain.
So, Mr. Speaker, I commend the gentleman from New York (Chairman
Lazio) for a great bill. I think it is a dynamic young subcommittee.
The gentleman is doing a great job. I want to keep my language, and I
want that passed on so my housing counseling program would also be
available to the veterans of our country, and they would get a notice
and the accompanying protections that are afforded in other type loans.
{time} 1500
Mr. LAZIO of New York. Mr. Speaker, will the gentleman yield?
Mr. TRAFICANT. I yield to the gentleman from New York.
Mr. LAZIO of New York. Mr. Speaker, I want to thank the gentleman for
being a tireless advocate on behalf of veterans and to let him know
that he has my personal commitment that we will look for a vehicle in
which to address the gentleman's concern, because his concern is my
concern.
Mr. TRAFICANT. It is in H.R. 2. I want to keep it there.
Mr. LAZIO of New York. Mr. Speaker, I yield 3 minutes to the
distinguished gentleman from Florida (Mr. Stearns).
Mr. STEARNS. Mr. Speaker, I thank the gentleman for yielding time to
me.
Mr. Speaker, studies indicate that anywhere from 500,000 to 3 million
American men and women are homeless in any given day. That is a very
troubling problem, and I commend the work being done by the gentleman
from New York (Mr. Lazio) and all the Members of the House subcommittee
for what they are doing to correct this. I applaud their efforts in
bringing H.R. 217 to the floor, the Homeless Housing Programs
Consolidation and Flexibility Act we have today.
I would like, however, to urge that we also focus much more attention
on the largest group of these homeless individuals. This sort of ties
in with the comment of the gentleman from Ohio (Mr. Traficant). It is
shocking to realize that veterans of services in our Armed Forces
represent approximately one-third of all homeless men. Provisions of
H.R. 217 do acknowledge the plight of veterans among the ranks of the
homeless, but while this bill is a good start, we really must do more
for our veterans.
Mr. Speaker, during the 103rd Congress, the House Committee on
Veterans' Affairs initiated and the Congress adopted a sense of the
Congress regarding funding to support homeless veterans.
Mr. KENNEDY of Massachusetts. Mr. Speaker, will the gentleman yield?
Mr. STEARNS. I yield to the gentleman from Massachusetts.
Mr. KENNEDY of Massachusetts. Mr. Speaker, I just wanted to commend
the gentleman from Florida (Mr. Stearns) for his concern about the
homeless veterans. As we both serve on the Committee on Veterans'
Affairs, it is also appropriate for us to take those concerns, I think,
on to this new budget that we are going to be discussing in the
Committee on Veterans' Affairs over the course of the next few days and
to bring this up, because that is one of the accounts in the Committee
on Veterans' Affairs budget that has been terribly underfunded this
year. So I would like to work with the gentleman on trying to make sure
we put some money into that bill as well.
Mr. STEARNS. I commend the gentleman from Massachusetts for his
comments. I would be very happy to work with him. The gentleman has
been very active in this area, and I think he is one of the leaders
here in Congress on behalf of the homeless veterans.
Mr. Speaker, the measure that I am thinking about called for
substantially increasing the funding for organizations that provide
assistance primarily to homeless veterans, so that their share more
closely approximates the proportion of veterans in the homeless
population. This is a goal I think we need to keep in our sights and
work hard to achieve.
As a member of the Committee on Veterans' Affairs and chairman of the
Subcommittee on Health, I have seen firsthand the kinds of problems
that lead to homelessness among those who have sacrificed for this
country. I support H.R. 217 but urge this body to do more to assist
those organizations which have targeted their efforts primarily at
veterans.
In passing, and in part of reference, I wish to add my feelings on
this on a personal matter. Many of these homeless populations are down
on their luck. I know that is true. They have had problems with their
health. There is something else that is occurring here, however. Many
of the homeless have learning disabilities that make it very difficult
for these persons to retain and keep a job, a job that is above minimum
wage.
So in the future, I hope Congress will look at the impact of learning
disabilities on homeless veterans and see what we can do to help them
in the early stages, so they do not end up as part of the homeless
population.
Mr. KENNEDY of Massachusetts. Mr. Speaker, I yield 1\1/2\ minutes to
my good friend, the gentlewoman from Florida (Mrs. Meek).
(Mrs. MEEK of Florida asked and was given permission to revise and
extend her remarks.)
Mrs. MEEK of Florida. Mr. Speaker, I thank the gentleman for yielding
time to me.
Mr. Speaker, to the good chairman, the gentleman from New York (Mr.
Lazio), and the ranking member, the gentleman from Massachusetts (Mr.
Kennedy), I think I will be the only one here in the House today to
speak against or in opposition to the bill. It is a very hard thing to
do, because of my respect for these two gentlemen and the work that
they have done here in the House on housing.
Mr. Speaker, we want all the homeless to be helped, but imposing the
same Federal mandates for the entire country may not be the best way to
do that, and I am hoping the committee can look at this a little bit
further as this bill goes through and goes to the Senate.
[[Page H720]]
I include for the Record a letter from the HUD Secretary, Andrew
Cuomo, a letter from the mayor, Alex Penelas, and a letter from the
head of my housing foundation, Alvah Chapman, in the Record opposing
the bill in its current form.
The letters referred to are as follows:
U.S. Department of Housing
and Urban Development,
Washington, DC, February 25, 1998.
Hon. Rick Lazio,
Chairman, Subcommittee on Housing and Community Opportunity,
Committee on Banking and Financial Services,
Washington, DC.
Dear Mr. Chairman: Thank you for your letter of January 26,
1998, concerning the Department of Housing and Urban
Development's position on current homelessness assistance
legislation being considered by the House of Representatives.
The Department is proud of the progress we have made through
our homeless initiatives in recent years. Our results are
clear: Because of better coordination with local governments
and comprehensive local planning, significantly more homeless
persons are being helped, the capacity of non-profit
providers has been enhanced, and substantially more non-HUD
funding has been leveraged to address the problem of
homelessness.
Policies implemented by HUD in recent years have eliminated
the Federal top-down approach which resulted in a fragmented
array of housing and services. In place of this failed
approach, HUD has instituted the Continuum of Care which
awards homelessness assistance funds based on comprehensive
locally-developed plans and priorities crafted by a broad
cross-section of community stakeholders, including housing
and service providers, government officials, the business
community, the faith community, and homeless and formerly-
homeless people.
The Department's position is that H.R. 217 would compromise
this success in several ways. First, whereas the current
system allows local control and community design, H.R. 217
would impose top-down Federal mandates. The mandatory set-
aside for permanent housing would limit a local community's
flexibility to meet the needs it identifies as priorities.
The permanent housing set-aside establishes an additional
process and stream of funding. HUD has worked diligently to
provide communities with a single process with a single
stream of funding. This process currently allows communities
to fund essential permanent housing and does not limit the
percent of dollars spent on permanent housing.
A second Federal mandate in the proposed legislation is the
35 percent services cap. This mandate would once again limit
a community's flexibility to design its own programs and
approaches to addressing homelessness. If a community exceeds
this cap, H.R. 217 would impose a monetary penalty by
increasing the local match requirement. We do not believe
local flexibility should be constrained, or a locality
penalized for meeting its priority needs.
Our third concern is that homelessness assistance providers
input and involvement in designing the locality's system is
not sufficiently engaged in H.R. 217. HUD's legislative
proposal uses the Consolidated Planning process to ensure and
protect not-for-profit and provider involvement in local
homelessness assistance planning efforts. We do not believe
the provisions of H.R. 217 ensure a balanced community
process. The Department believes critical elements of local
Continuum of Care planning must be explicitly included in any
homelessness assistance legislation in order to establish a
necessary balance between local government's submission and
homeless provider inclusion.
Finally, our proposal is not designed to be a block grant
but rather a performance grant. A synthesis which provides
for the formula-based distribution of a block grant and the
performance mandate of a competition. We believe strongly
that such an approach ensures an equitable distribution of
funds while protecting taxpayer's investment in efforts to
address homelessness.
In sum, we believe the current community-driven process is
preferable to an approach which would limit local decision-
making and priority-setting by reestablishing Federal
mandates.
We would still support a legislative solution if it removed
the 30 percent permanent housing mandate, 35 percent
supportive services cap and monetary penalties, and more
clearly protected not-for-profits and homelessness providers
involvement in the Consolidated Planning and Continuum of
Care process.
Thank you for your continued efforts to address the
pressing needs of our nation's poor and homeless citizens. I
look forward to working with you in the coming months to
strengthen our mutual efforts to address these issues.
Sincerely,
Andrew Cuomo.
____
Metropolitan Dade County,
Stephen P. Clark Center,
Miami, FL, February 27, 1998.
Hon. Congresswoman Carrie P. Meek,
Washington, DC.
Dear Congresswoman Meek: On Tuesday, March 3, 1998, the
House of Representatives will consider legislation that will
greatly impact homeless assistance funding and the innovative
programs that have made Miami-Dade's homeless strategy a
national model. The proposed H.R. 217, under the sponsorship
of Representative Rick Lazio, seeks to consolidate most
homeless funding into a block grant formula. This legislation
was introduced in an effort to reduce the Federal ``top-
down'' approach which in past years resulted in an
uncoordinated homeless housing and service delivery system.
Most recently, however, U.S. HUD has required local
communities to coordinate their efforts to fill their needs
and gaps. Communities such as Miami-Dade have been able to
design successful programs using the competitive funding
formula, which has given our community the flexibility to
direct funds to meet locally identified needs.
In addition to compromising this most recent successful
approach, the proposed legislation has other elements that
concern our local community, and would impact the effective
and efficient delivery of services to our homeless citizens.
In particular, H.R. 217 is intended to provide local control
of funding through a block-granting approach. In effect,
however, this legislation includes Federal ``top-down''
mandates, such as mandatory set-asides for permanent housing
and a cap on funding for supportive services. These mandates
would limit our community's ability to develop strategies
specific to address our community's needs. Under the current
approach, our community has competitively received over $70
million in federal funds to implement innovative programs.
Complimented by a public/private partnership that has raised
an additional $24 million, more than 4,000 new beds have or
will be created for homeless families and individuals.
As we understand, U.S. HUD has indicated it will no longer
propose a block-grant driven funding plan and has eliminated
this concept from their appropriations request. The U.S. HUD
Secretary has expressed concern with the legislation as it is
currently proposed. We are equally concerned as it would un-
do the significant local efforts that have helped so many.
We support the current U.S. HUD funding process and would
urge you to consider the significant adverse impact that H.R.
217 would have in allowing us to serve the neediest of our
community.
Sincerely,
Alex Penelas,
Mayor.
____
One Herald Plaza,
Miami, FL, March 2, 1998.
Hon. Carrie P. Meek,
U.S. House of Representatives,
Washington, DC.
Dear Congresswoman Meek: On Tuesday, March 3, 1998, the
House of Representatives will consider legislation that will
greatly impact homeless assistance funding and the innovative
programs that have made Miami-Dade's homeless strategy a
national model. The proposed H.R. 217, under the sponsorship
of Representative Rick Lazio, seeks to consolidate most
homeless funding into a block-grant formula.
I oppose this approach!!
Communities such as Miami-Dade have been able to design
successful programs using the current competitive funding
formula which has given our community the flexibility to
direct funds to meet locally identified needs!
Under the current approach, our community has competitively
received over $70 million in federal funds to implement
innovative programs. Complemented by a public/private
partnership that has raised an additional $24 million, more
than 4,000 new beds have or will be created for homeless
families and individuals.
I am told that the U.S. HUD Secretary has expressed concern
with Lazio's approach to this matter and does not support
H.R. 217.
I support the current U.S. HUD funding process and would
urge you to consider the significant adverse impact that H.R.
217 would have in allowing us to serve the neediest of our
community.
By now, you have received a February 27 letter from Mayor
Alex Penelas stating his position in opposition to the Lazio
approach (H.R. 217). I completely support the Mayor's view on
this.
We have worked very hard to build a system of care for the
homeless in Dade County and H.R. 217 would do much to undo
our accomplishments.
Sincerely,
Alvah H. Chapman, Jr.,
Chairman, Community Partnership for Homeless, Inc.
Mr. Speaker, I am hoping this will be a strong enough mandate so we
can look at this a little further. This bill consolidates the seven
existing homeless programs into one new program, with 75 percent of the
Federal funds going to a new block grant program and 25 percent going
to competitive permanent housing grants. The bill also imposes new
mandates on the use of these funds, and takes away the flexibility from
counties like Dade and some of the other counties that are using
innovative approaches to really develop their housing programs.
They have done a very good job with this. I hope the Senate and the
committee will look at this, and I hope they will be able to add more
flexibility to this good bill.
Mr. KENNEDY of Massachusetts. Mr. Speaker, I ask unanimous consent to
[[Page H721]]
extend the debate time by 2 minutes on each side, because I would like
to make sure that the gentlewoman from Florida (Mrs. Meek) has the full
debate time. She asked for 2 minutes and I only had 1\1/2\ minutes.
Mr. LAZIO of New York. Mr. Speaker, I would join in that.
The SPEAKER pro tempore (Mr. Snowbarger). Is there objection to the
request of the gentleman from Massachusetts?
There was no objection.
The SPEAKER pro tempore. The gentlewoman from Florida (Mrs. Meek) is
recognized for an additional 30 seconds.
Mrs. MEEK of Florida. Mr. Speaker, if we were to keep these
restrictions, it would have a very bad impact on the county. We have
developed a very strong public-private partnership under the people
there in the county, like the mayor, and certainly $70 million in
Federal funds in Dade County have been joined with $24 million in local
funds, and we were able to create 4,000 new beds for the homeless
families and individuals.
My point is we need more flexibility so we can apply a stronger
public-private match within our local communities. This bill would help
the delivery of services, particularly supportive services, to these
homeless citizens.
Mr. LAZIO of New York. Mr. Speaker, I yield 1\1/2\ minutes to the
distinguished gentleman from Connecticut (Mr. Shays).
Mr. SHAYS. Mr. Speaker, I thank the gentleman yielding time to me.
Mr. Speaker, I want to say with tremendous gratitude that my
predecessor, Stewart B. McKinney, cared deeply about housing issues and
the provision of housing for people in need, particularly the homeless.
I appreciated Congress' desire to name the McKinney Act after him, and
am very supportive of what the gentleman from New York (Mr. Lazio) and
the gentleman from Massachusetts (Mr. Kennedy) have done in
consolidating seven programs into a single block grant, with emphasis
on permanent housing and coordination among other agencies to leverage
necessary supportive services and greater local flexibility.
I strongly support the bill's focus on permanent housing and
supportive services to help homeless families find and keep a permanent
home. I appreciate the recognition on the part of this Congress that
the McKinney Act is a very important part of our homeless effort, and
that this act remains intact under his name.
Mr. KENNEDY of Massachusetts. Mr. Speaker, I yield 30 seconds to the
gentleman from Virginia (Mr. Moran).
Mr. MORAN of Virginia. Mr. Speaker, I thank the gentleman for
yielding me the time.
Mr. Speaker, I have no problems with this bill. I have everything
positive to say about it. It is a terrific bill. It is exactly what we
need to do.
One of the even more compelling parts of it is the fact that our
ranking Democrat and our chairman are both in agreement. I know
communities all over the country are going to be in agreement with what
we are doing here, and most importantly, we are going to be freeing up
resources that are currently spent on administrative costs to be spent
on improving the lives of homeless people so they can live lives of
greater dignity.
It is a good bill. I am glad it is going to get unanimous support in
this body. I thank the gentleman from New York (Mr. Lazio) and the
gentleman from Massachusetts (Mr. Kennedy).
Mr. KENNEDY of Massachusetts. Mr. Speaker, I yield 2 minutes to the
gentlewoman from Texas (Ms. Sheila Jackson-Lee).
Ms. JACKSON-LEE of Texas. Mr. Speaker, I thank the gentleman from
Massachusetts for yielding time to me, and I thank the gentlemen from
Massachusetts and from New York for the creativity and thinking on
legislation that is very near and dear to my heart.
In the many times we come to the floor of the House, sometimes it is
not our place to give personal stories and anecdotes, but let me say in
the city of Houston I have spent time under the bridges with homeless
persons. I have spent time in the homeless shelters, I have seen the
shanties that are built right here in the United States of America,
confronting our homeless citizens, dealing with the crisis of
homelessness.
What I would say, Mr. Speaker, is that this is a step in the right
direction. It is particularly a step in the right direction because of
the fact that it coordinates the needs of our homeless veterans. I
spend many a day in the veterans' hospitals talking to those who are
now hospitalized, and as well, dealing with homeless veterans on the
streets.
In fact, I participate in what we call ``Standdown'' in Houston,
where we go out and bring services to our homeless veterans. If there
was ever a greater sacrifice than those who have served our country in
the military, it is coming home to be a homeless veteran. So I thank
the committee for the leadership in coordinating with the Veterans
Administration in dealing with those persons who are veterans and
homeless, as well as the opportunities for housing for our women and
children and other homeless persons.
Let me say, however, that I would like to add my concern and
hopefully expression of interest in working with the committee,
although I am not on the committee, on issues reinforcing the continuum
of care, looking again at the caps and requirements and the suggestions
on where the local communities use their funds.
We are all different, and years ago Houston had one of the highest
homeless rates. We still have 10,000 persons on the streets. I know
there are many ways we confront those questions.
I would simply say to both the chairman and certainly to my good
friend, the gentleman from Massachusetts (Mr. Kennedy), who has been so
much in the forefront of this issue, if they would allow me to have
continued input on how this may impact some of our local communities I
would appreciate it. I think we are going in the right direction.
Anytime we can help cure the disease of homelessness, I think we are
going in the right direction.
Mr. KENNEDY of Massachusetts. Mr. Speaker, I yield myself such time
as I may consume.
In closing, Mr. Speaker, let me again congratulate the gentleman from
New York (Mr. Lazio) on an excellent piece of legislation. I want to
thank the staff on the Republican side for their efforts, and I would
also like to thank both Angie and Rick on the Democratic side for the
efforts they made, and particularly to Scott Olson, who has worked very
hard on this piece of legislation.
In my final comment, Mr. Speaker, I just would hope that the
gentleman from New York and I could agree to take the next stage of
this fight to the Committee on Appropriations with, I hope, the
gentleman from Iowa (Mr. Leach) and the gentleman from New York (Mr.
LaFalce), to make certain that the Committee on Appropriations now
follows through on the $1 billion request that has been unanimously
asked for by the Committee on Banking and Financial Services, and I
hope by the body as a whole.
Again, I want to congratulate the gentleman from New York (Mr.
Lazio), wish him the best, and hope we have more opportunity to work
together in the future.
Mr. LAZIO of New York. Mr. Speaker, I yield myself such time as I may
consume.
Mr. Speaker, I want to begin by emphasizing to the gentleman from
Ohio (Mr. Traficant), to let him know publicly that I am committed to
his counseling notification provisions in H.R. 2, and that I will work
hard to make sure it is part of the final product that is moved through
conference and hopefully to enactment.
I am confident that H.R. 2 will come to fruition this year, and if
need be, we will look for other vehicles in order to address the
gentleman's concern. I want the gentleman to know that. I respect him
for his unwavering interest in this particular issue.
Let me also thank once again so many people, Mr. Speaker, who helped
make this possible: The gentleman from Florida (Mr. Canady), who was
truly a friend to the process, who worked with us and the staff, and on
the Democratic side, the gentleman from New York (Mr. LaFalce) and the
gentleman from Texas (Mr. Gonzalez), and our side of the aisle, the
gentleman from Iowa (Mr. Leach), and many of the speakers who have been
here and spoken on behalf of this bill.
Let me particularly thank, Mr. Speaker, the many thousands of
Americans that every day get up to serve
[[Page H722]]
the homeless. It is I think a very foreign thought for many of us who
we have been blessed to grow up in more affluent areas and with
families that have been intact and nurturing, to imagine that so many
of our neighbors could live out on the streets in some of the coldest
days of the year, not just adults but people who are elderly, young
children, suffering on the streets and outside. It is not part of an
America that I envision for my children or for their neighbors or for
Americans in the next generation.
{time} 1515
I think we have before us the makings of a solution to the problems.
One of the frustrations that we have in the Federal level, I think, is
that we so often see the solutions, we know what they look like. In
this case we know that community-based solutions work. We know that
flexibility and creativity needs to be rewarded. We know that
reciprocity works. We know that the services that help those people who
were disabled because of mental illness or physical disability or
because of drug addiction or alcoholism, that those do not go away
without some support and some help. And we know with help and with
support that people can make it to independence and self-sufficiency.
That is the name of the game, Mr. Speaker. It is not just to maintain
people, but to help them transform to self-sufficiency; helping them to
achieve a quality of life that we would want if somebody on the street
were a member of our families; that we care enough to make the effort
to support the people, the advocates, the people that manage homeless
programs throughout America.
Mr. Speaker, we also know that we can do this in a more cost-
effective way. We know that throwing money at the problem alone will
not solve it. We know that we need to be value-oriented, that we need
to have a sense of success. We need to define success and we need to
hold ourselves to that standard. This is important work. This is about
saving families and seniors and adults, people that can be saved if we
make the effort.
So, Mr. Speaker, I ask my colleagues to support this important
legislation, a product born of input from many, many people, people
that will not necessarily make the evening news or the front page of
the newspapers but nonetheless contribute to their neighborhood in a
very important way. Mr. Speaker, I ask my colleagues to support this
important bill to help the beginning of the end for the homeless.
Mr. BARR of Georgia. Mr. Speaker, in my home county of Cobb Georgia
we have seen first hand the problems associated with the Federal
Government controlling the purse strings.
In one case, due to a misunderstanding between the national HUD
office and the Regional office Cobb County has been made to suffer.
In a circumstance where Cobb county should have received upwards of
six hundred thousand dollars to benefit the homeless. Instead only one
project worth eighty one thousand dollars were approved.
In a recent letter to Speaker Gingrich, the Cobb County Community
Development Block Grant Program wrote the following:
We do not understand why HUD chose to ignore the needs of
the sizable homeless population in Cobb County, particularly
when local organizations have done such a good job of
carrying out local planning and coordination in compliance
with HUD's stated objectives for the Continuum of Care
process. Nor do we feel that HUD has been candid in
explaining why the project was not funded.
Mr. Speaker, H.R. 217 consolidates the seven existing homeless
programs under HUD and requires all Federal departments and agencies to
coordinate homeless assistance. Wasteful duplication is eliminated and
resources are directed to those that need them the most.
H.R. 217 also provides incentives for communities to confront
homeless issues comprehensively. It emphasizes the importance of
partnerships among the variety of non-profit developers and service
agencies in dealing with the special needs of homeless persons.
Mr. Speaker, by consolidating these programs into block grants we can
help give state and local governments the ability to fight the problem
of homelessness in a much more efficient manner. In the end, H.R. 217
will ensure a better use of tax payer dollars and better care for the
homeless.
Mr. CAMPBELL. Mr. Speaker, I am pleased to rise in support of H.R.
217, the Homeless Housing Programs Consolidation and Flexibility Act.
The homeless crisis continues to be a serious and growing problem, and
this legislation addresses it with common sense and compassion.
Through passage of H.R. 217, Congress is recognizing the simple but
unassailable principle that no one should live and die on the streets.
This legislation takes a number of steps that Congress can and should
take to attack this problem. For starters, we provide for more
effective delivery of McKinney Act Homeless Assistance programs--
programs which give direct assistance just to the homeless. This bill
consolidates the seven existing homeless programs under HUD and
requires better federal coordination of all homeless assistance. It
also provides incentives for communities to confront the homeless
problem at the local level, where the decisions are the best-informed.
Non-profit developers and service agencies will be given the tools to
work together in dealing with the special needs of homeless persons.
The bill provides for the better value in federal homeless spending
while making our most vulnerable population more self-sufficient.
Instead of the more expensive and less effective approaches of the
past, we are able to focus more attention on a coordinated, long-term
vision for the homeless with concrete results. There is simply no
reason to fail in providing shelter, whether permanent or temporary, to
people who have nowhere else to turn. Our homeless population, often
trapped in a cycle of hopelessness beyond its control, deserves an
innovative response from Congress. I applaud Chairman Leach, Chairman
Lazio, Congressman Vento, and Congressman Kennedy, as well as a bi-
partisan coalition of concerned Members, who have worked hard to move
homeless assistance policy into the next century.
Mr. LAZIO of New York. Mr. Speaker, I yield back the balance of my
time.
The SPEAKER pro tempore (Mr. Snowbarger). The question is on the
motion offered by the gentleman from New York (Mr. Lazio) that the
House suspend the rules and pass the bill, H.R. 217, as amended.
The question was taken.
Mr. LAZIO of New York. Mr. Speaker, on that I demand the yeas and
nays.
The yeas and nays were ordered.
The SPEAKER pro tempore. Pursuant to clause 5 of rule I and the
Chair's prior announcement, further proceedings on this motion will be
postponed.
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