[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.

                          ____________________