[Congressional Record Volume 148, Number 68 (Thursday, May 23, 2002)]
[Senate]
[Pages S4865-S4873]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. REED (for himself, Ms. Collins, Mr. Sarbanes, Mr. Chafee, 
        Mr. Schumer, Mr. Akaka, Mr. Carper, Mr. Dodd, and Mr. Corzine):
  S. 2573. A bill to amend the McKinney-Vento Homeless Assistance Act 
to reauthorize the Act, and for other purposes; to the Committee on 
Banking, Housing, and Urban Affairs.
  Mr. REED. Mr. President, I rise today along with my colleagues, 
Senators Collins, Sarbanes, Chafee, Schumer, Akaka, Carper, Dodd, and 
Corzine to introduce a piece of legislation we believe establishes a 
framework for ending long-term homelessness in the United States. There 
is a growing consensus around the country that fifteen years after the 
passage of the McKinney-Vento Act, we now know how to help communities 
break the cycle of repeated and prolonged homelessness. Federal 
dollars, combined with local efforts, can help bring an end to this 
problem. The Community

[[Page S4866]]

Partnership to End Homelessness Act of 2002 is intended to realign the 
incentives in the McKinney-Vento Homeless Assistance Act so that 
communities are rewarded for initiatives that will prevent and end 
homelessness, instead of receiving Federal funding for programs that 
maintain the status quo.
  During the past year, the Urban Institute estimates that at least 2.3 
million, and perhaps as many as 3.5 million people, have been homeless. 
On any given day in the United States, at least 800,000 people are 
homeless, including about 200,000 children. Homelessness has an 
especially devastating impact on these children. If they are able to go 
to school, it is well documented that homeless children face increased 
challenges, such as learning disabilities and emotional and behavioral 
problems.
  This year's U.S. Conference of Mayors report on ``Hunger and 
Homelessness in America's Cities'' finds that requests for emergency 
shelter by families increased by 22 percent. Unfortunately, over half 
of all these requests for housing assistance went unmet. In my State, 
the Rhode Island shelter system provided more nights of shelter this 
past year than at any point in its history.
  Locally and nationally, several trends seem clear. First, despite the 
economic boom in the 1990s, homelessness has increased. Second, 
increasing numbers of families with children are being forced into our 
emergency shelter system. In March of this year, the Washington Post, 
reported that there had been a 25 percent rise in homelessness in 
Fairfax County, Virginia during the past four years, and most of that 
increase consisted of homeless families. Third, a relatively small 
number of long-term homeless persons continue to utilize a 
disproportionate number of the bed nights in our Nation's shelters.
  When it was created in 1987, the McKinney-Vento Homeless Assistance 
Act was intended to be an emergency federal response to the ``crisis'' 
of homelessness. Instead, it has become a safety net for low-income 
households who are inadequately served by mainstream programs such as 
Section 8 and Medicaid. Too often, mainstream programs are shifting the 
cost and responsibility for housing and a variety of support services 
to emergency homeless assistance programs.
  To reverse this trend, the Community Partnership to End Homelessness 
Act of 2002 would focus federal funds on projects and programs that are 
helping to prevent and end homelessness. This legislation also would 
allow maximum local creativity in addressing homelessness by 
consolidating multiple HUD McKinney-Vento programs into one program 
with a list of eligible activities.
  Our bill would also provide incentives for communities to build 
permanent housing for the disabled and for non-disabled families. It 
would encourage the creation of homelessness prevention programs, and 
it would promote comprehensive and inclusive local planning. Finally, 
it would require greater program accountability through the use of 
outcome-based performance evaluations.
  The Community Partnership to End Homelessness Act of 2002 is endorsed 
by the National Alliance to End Homelessness, the Corporation for 
Supportive Housing, Fannie Mae, Freddie Mac, the Local Initiatives 
Support Corporation, the National Equity Fund, Inc., the National 
Alliance for the Mentally Ill, the McAuley Institute and the Enterprise 
Foundation.
  We need to find the will and the resources to eradicate homelessness 
in this country. The Community Partnership to End Homelessness Act is 
only the beginning. The needs of homeless individuals and families fall 
within the jurisdiction of many federal departments and congressional 
committees. Thus, I believe additional legislation is going to be 
necessary in order to require Federal agencies such as HHS and the 
Department of Veterans Affairs to work with HUD in a more coordinated 
manner towards achieving this goal. I am committed to addressing this 
crisis, and I hope my colleagues will join us in supporting this bill 
and other homeless prevention efforts.
  I ask unanimous consent that the text of the Community Partnership to 
End Homelessness Act be printed in the Record.
  There being no objection, the bill was ordered to be printed in the 
Record, as follows:

                                S. 2573

       Be it enacted by the Senate and House of Representatives of 
     the United States of America in Congress assembled,

     SECTION 1. SHORT TITLE.

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

     SEC. 2. FINDINGS AND PURPOSE.

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

     ``SEC. 102. FINDINGS AND PURPOSE.

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

[[Page S4867]]

       ``(3) to allow flexibility and creativity in rethinking 
     solutions to homelessness, including alternative housing 
     strategies, outcome-effective service delivery, and the 
     involvement of persons experiencing homelessness in 
     decisionmaking regarding opportunities for their long-term 
     stability, growth, and well-being;
       ``(4) to ensure that multiple Federal agencies are involved 
     in the provision of housing, health care, human services, 
     employment, and education assistance to persons experiencing 
     homelessness, as appropriate for the missions of the 
     agencies, through the funding provided for implementation of 
     programs carried out under this Act and other programs 
     targeted for persons experiencing homelessness, and 
     mainstream funding, and to promote coordination among those 
     Federal agencies, including providing funding for an 
     Interagency Council on Homelessness to advance such 
     coordination;
       ``(5) to create a unified and performance-based process for 
     allocating and administering funds under title IV;
       ``(6) to encourage comprehensive, collaborative local 
     planning of housing and services programs for persons 
     experiencing homelessness; and
       ``(7) to focus the resources and efforts of the public and 
     private sectors on ending and preventing homelessness.''.

     SEC. 3. INTERAGENCY COUNCIL ON HOMELESSNESS.

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

     ``SEC. 208. AUTHORIZATION OF APPROPRIATIONS.

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

     SEC. 4. HOUSING ASSISTANCE GENERAL PROVISIONS.

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

                  ``Subtitle A--General Provisions'';

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

     ``SEC. 401. DEFINITIONS.

       ``In this title:
       ``(1) Board.--The term `Board' means a Community Homeless 
     Assistance Planning Board that is a representative planning 
     body established in accordance with section 402.
       ``(2) Collaborative applicant.--The term `collaborative 
     applicant' means--
       ``(A) an entity, which may or may not be a Board, that 
     serves as the applicant for project sponsors who jointly 
     submit a single application for a grant under subtitle C with 
     the approval of, and in accordance with the collaborative 
     process established by, a Board, and, if awarded such grant, 
     receives such grant directly from the Secretary; or
       ``(B) an individual project sponsor who is an eligible 
     entity under subtitle C and submits an application for a 
     grant under subtitle C, with the approval of, and in 
     accordance with the collaborative process established by, a 
     Board, and, if awarded such grant, receives such grant 
     directly from the Secretary.
       ``(3) Collaborative application.--The term `collaborative 
     application' means an application for a grant under subtitle 
     C that--
       ``(A) satisfies section 422 (including containing the 
     information described in subsections (a) and (c) of section 
     426); and
       ``(B) is submitted to a Board and then to the Secretary by 
     a collaborative applicant.
       ``(4) Consolidated plan.--The term `Consolidated Plan' 
     means a comprehensive housing affordability strategy and 
     community development plan required in part 91 of title 24, 
     Code of Federal Regulations.
       ``(5) Eligible entity.--The term `eligible entity' means, 
     with respect to a subtitle, a public or private entity 
     eligible to receive directly grant amounts under that 
     subtitle.
       ``(6) Geographic area.--The term `geographic area' means a 
     State, metropolitan city, urban county, town, village, or 
     other nonentitlement area, or a combination or consortia of 
     such, in the United States, as described in section 106 of 
     the Housing and Community Development Act of 1974 (42 U.S.C. 
     5306).
       ``(7) Homeless individual with a disability.--
       ``(A) In general.--The term `homeless individual with a 
     disability' means an individual who is homeless, as defined 
     in section 103 and has a disability that--
       ``(i)(I) is expected to be long-continuing or of indefinite 
     duration;
       ``(II) substantially impedes the individual's ability to 
     live independently;
       ``(III) could be improved by the provision of more suitable 
     housing conditions; and
       ``(IV) is a physical, mental, or emotional impairment, 
     including an impairment caused by alcohol or drug abuse;
       ``(ii) is a developmental disability, as defined in section 
     102 of the Developmental Disabilities Assistance and Bill of 
     Rights Act of 2000 (42 U.S.C. 15002); or
       ``(iii) is the disease of acquired immunodeficiency 
     syndrome or any condition arising from the etiologic agency 
     for acquired immunodeficiency syndrome.
       ``(B) Rule.--Nothing in clause (iii) of subparagraph (A) 
     shall be construed to limit eligibility under clause (i) or 
     (ii) of subparagraph (A).
       ``(8) Independently owned.--The term `independently owned', 
     used with respect to rental assistance, means assistance 
     provided pursuant to a contract that--
       ``(A) is between--
       ``(i) the recipient or a project sponsor; and
       ``(ii) an independent entity that--

       ``(I) is a private organization; and
       ``(II) owns or leases dwelling units; and

       ``(B) provides that rental assistance payments shall be 
     made to the independent entity and that eligible persons 
     shall occupy such assisted units.
       ``(9) Low-demand program.--The term `low-demand program' 
     means a program that does not require, but offers, in a non-
     coercive manner--
       ``(A)(i) health care services, mental health services, and 
     substance abuse treatment services; and
       ``(ii) other supportive services, which may include 
     medication management, education, counseling, job training, 
     and assistance in obtaining entitlement benefits or in 
     obtaining such supportive services; and
       ``(B) referrals for services described in subparagraph (A).
       ``(10) Metropolitan city; urban county; nonentitlement 
     area.--The terms `metropolitan city', `urban county', and 
     `nonentitlement area' have the meanings given such terms in 
     section 102(a) of the Housing and Community Development Act 
     of 1974 (42 U.S.C. 5302(a)).
       ``(11) New.--The term `new', used with respect to housing, 
     means housing for which no assistance has been provided under 
     this title.
       ``(12) Operating costs.--The term `operating costs' means 
     expenses incurred by a recipient or project sponsor 
     operating--
       ``(A) transitional housing or permanent housing under this 
     title with respect to--
       ``(i) the administration, maintenance, repair, and security 
     of such housing;
       ``(ii) utilities, fuel, furnishings, and equipment for such 
     housing; or
       ``(iii) conducting an assessment under section 426(c)(2); 
     and
       ``(B) supportive housing, for homeless individuals with 
     disabilities or homeless families that include such an 
     individual, under this title with respect to--
       ``(i) the matters described in clauses (i), (ii), and (iii) 
     of subparagraph (A); and
       ``(ii) coordination of services as needed to ensure long-
     term housing stability.
       ``(13) Outpatient health services.--The term `outpatient 
     health services' means outpatient health care services, 
     mental health services, and outpatient substance abuse 
     treatment services.
       ``(14) Permanent housing.--The term `permanent housing' 
     includes permanent supportive housing.
       ``(15) Permanent housing development activities.--The term 
     `permanent housing development activities' means activities--
       ``(A) to construct, lease, rehabilitate, or acquire 
     structures to provide permanent housing;
       ``(B) involving tenant-based, independently owned, and 
     project-based flexible rental assistance for permanent 
     housing;
       ``(C) described in paragraphs (1) through (4) of section 
     423(a); or
       ``(D) involving the capitalization of a dedicated project 
     account from which payments are allocated for rental 
     assistance and operating costs of permanent housing.

[[Page S4868]]

       ``(16) Private nonprofit organization.--The term `private 
     nonprofit organization' means an organization--
       ``(A) no part of the net earnings of which inures to the 
     benefit of any member, founder, contributor, or individual;
       ``(B) that has a voluntary board;
       ``(C) that has an accounting system, or has designated a 
     fiscal agent in accordance with requirements established by 
     the Secretary; and
       ``(D) that practices nondiscrimination in the provision of 
     assistance.
       ``(17) Project.--The term `project', used with respect to 
     activities carried out under subtitle C, means eligible 
     activities described in section 423(a), undertaken pursuant 
     to a specific endeavor, such as serving a particular 
     population or providing a particular resource.
       ``(18) Project-based.--The term `project-based', used with 
     respect to rental assistance, means assistance provided 
     pursuant to a contract that--
       ``(A) is between--
       ``(i) the recipient or a project sponsor; and
       ``(ii) an owner of a structure that exists as of the date 
     the contract is entered into; and
       ``(B) provides that rental assistance payments shall be 
     made to the owner and that the units in the structure shall 
     be occupied by eligible persons for not less than the term of 
     the contract.
       ``(19) Project sponsor.--The term `project sponsor', used 
     with respect to proposed eligible activities, means the 
     organization directly responsible for carrying out the 
     proposed eligible activities.
       ``(20) Recipient.--Except as used in subtitle B, the term 
     `recipient' means an eligible entity who--
       ``(A) submits an application for a grant under section 422 
     that is approved by the Secretary;
       ``(B) receives the grant directly from the Secretary to 
     support approved projects described in the application; and
       ``(C)(i) serves as a project sponsor for the projects; or
       ``(ii) awards the funds to project sponsors to carry out 
     the projects.
       ``(21) Safe haven.--
       ``(A) In general.--The term `safe haven' means a facility--
       ``(i) that provides 24-hour residence for an unspecified 
     duration for persons who, on entry to the facility, are 
     unwilling or unable to participate in mental health or 
     substance abuse treatment programs, or to receive other 
     supportive services;
       ``(ii) that provides private or semi-private 
     accommodations;
       ``(iii) that may provide for the common use of kitchen 
     facilities, dining rooms, and bathrooms;
       ``(iv) that may provide supportive services, on a drop-in 
     basis, to eligible persons who are not residents; and
       ``(v) in which overnight occupancy is limited to no more 
     than 25 persons.
       ``(B) Rules.--
       ``(i) Supplemental security income.--For purposes of the 
     program carried out under title XVI of the Social Security 
     Act (42 U.S.C. 1381 et seq.)--

       ``(I) no individual living in a facility described in 
     subparagraph (A) and authorized under this title shall be 
     considered to be an inmate of a public institution (as 
     provided in section 1611(e)(1)(A) of the Social Security Act 
     (42 U.S.C. 1382(e)(1)(A))); and
       ``(II) no individual living in a facility described in 
     subparagraph (A) and authorized under this title shall have 
     benefits under title XVI of the Social Security Act reduced 
     or terminated because of the receipt of support and 
     maintenance (as provided in section 1612(a)(2)(A) of the 
     Social Security Act (42 U.S.C. 1382a(a)(2)(A)), to the extent 
     such support and maintenance is received as a result of 
     residence in the facility.

       ``(ii) Medicaid assistance.--For purposes of the program 
     carried out under title XIX of the Social Security Act (42 
     U.S.C. 1396 et seq.)--

       ``(I) a facility described in subparagraph (A) and 
     authorized under this title shall not be considered to be a 
     hospital, nursing facility, institution for mental diseases 
     (as defined in section 1905(i) of the Social Security Act (42 
     U.S.C. 1396d(i))), or any other inpatient facility; and
       ``(II) an individual residing in a facility described in 
     subparagraph (A) and authorized under this title shall not be 
     denied eligibility for assistance under such title because of 
     residency in the facility.

       ``(22) Secretary.--The term `Secretary' means the Secretary 
     of Housing and Urban Development.
       ``(23) Seriously mentally ill.--The term `seriously 
     mentally ill' means having a severe and persistent mental 
     illness or emotional impairment that seriously limits a 
     person's ability to live independently.
       ``(24) Solo applicant.--The term `solo applicant' means an 
     entity that is an eligible entity, directly submits an 
     application for a grant under subtitle C to the Secretary, 
     and, if awarded such grant, receives such grant directly from 
     the Secretary.
       ``(25) State.--Except as used in subtitle B, the term 
     `State' means each of the several States, the District of 
     Columbia, the Commonwealth of Puerto Rico, the United States 
     Virgin Islands, Guam, American Samoa, and the Commonwealth of 
     the Northern Mariana Islands.
       ``(26) Supportive services.--The term `supportive services' 
     means the services described in section 425.
       ``(27) Tenant-based.--The term `tenant-based', used with 
     respect to rental assistance, means assistance that allows an 
     eligible person to select a housing unit in which such person 
     will live using rental assistance provided under subtitle C, 
     except that if necessary to assure that the provision of 
     supportive services to a person participating in a program is 
     feasible, a recipient or project sponsor may require that the 
     person live--
       ``(A) in a particular structure or unit for not more than 
     the first year of the participation; and
       ``(B) within a particular geographic area for the full 
     period of the participation, or the period remaining after 
     the period referred to in subparagraph (A).
       ``(28) Transitional housing.--The term `transitional 
     housing' has the meaning given the term in section 424(b), 
     and includes transitional supportive housing.

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

       ``(a) Boards.--A Board shall be established for a 
     geographic area by the relevant parties in that geographic 
     area, or designated for a geographic area by the Secretary in 
     accordance with subsection (c), to lead a collaborative 
     planning process to design, execute, and evaluate programs, 
     policies, and practices to prevent and end homelessness.
       ``(b) Membership.--A Board established under subsection (a) 
     shall be composed of persons--
       ``(1) from a particular geographic area;
       ``(2) not less than 51 percent of whom are--
       ``(A) persons who are experiencing or have experienced 
     homelessness (with not fewer than 2 persons being individuals 
     who are experiencing or have experienced homelessness);
       ``(B) persons who act as advocates for the diverse 
     subpopulations of persons experiencing homelessness; and
       ``(C) persons or representatives of organizations who 
     provide assistance to the variety of individuals and families 
     experiencing homelessness; and
       ``(3) the remainder of whom are selected from among--
       ``(A) government officials, particularly those officials 
     responsible for administering funding under programs targeted 
     for persons experiencing homelessness, and other programs for 
     which persons experiencing homelessness are eligible, 
     including programs identified by the General Accounting 
     Office in the February 1999 report entitled `Homelessness: 
     Coordination and Evaluation of Programs Are Essential';
       ``(B) members of the business community; and
       ``(C) members of neighborhood advocacy organizations.
       ``(c) Existing Planning Bodies.--The Secretary may 
     designate an entity to be a Board if such entity has, prior 
     to the date of enactment of the Community Partnership to End 
     Homelessness Act of 2002, engaged in coordinated, 
     comprehensive local homeless housing and services planning 
     and applied for Federal funding to provide homeless 
     assistance.
       ``(d) Remedial Action.--If the Secretary finds that a Board 
     for a geographic area does not meet the requirements of this 
     section, the Secretary may take remedial action to ensure 
     fair distribution of grant amounts under subtitle C to 
     eligible entities within that area. Such measures may include 
     designating another body as a Board or permitting eligible 
     entities to apply directly for grants.
       ``(e) Construction.--Nothing in this section shall be 
     construed to displace conflict of interest or government fair 
     practices laws, or their equivalent, that govern applicants 
     for grant amounts under subtitles B and C.
       ``(f) Duties.--A Board established under subsection (a) 
     shall--
       ``(1)(A) design a collaborative process, established 
     jointly and complied with by its members, for evaluating, 
     reviewing, and prioritizing projects and applications 
     submitted by eligible entities under subtitles B and C, in 
     such a manner as to ensure that the entities further the goal 
     of preventing and ending homelessness in the geographic area 
     involved;
       ``(B)(i)(I) review relevant policies and practices (in 
     place and planned) of public and private entities in the 
     geographic area served by the Board to determine if the 
     policies and practices further or impede the goal described 
     in subparagraph (A);
       ``(II) in conducting the review, give priority to the 
     review of--
       ``(aa) the discharge planning and service termination 
     policies and practices of publicly funded facilities or 
     institutions (such as health care or treatment facilities or 
     institutions, foster care or youth facilities, or 
     correctional institutions), and entities carrying out 
     publicly funded programs and systems of care (such as health 
     care or treatment programs, State programs funded under part 
     A of title IV of the Social Security Act (42 U.S.C. 601 et 
     seq.) (relating to Temporary Assistance for Needy Families), 
     foster care or youth programs, or correctional programs), to 
     ensure that such a discharge or termination does not result 
     in immediate homelessness for the persons involved;
       ``(bb) the access and utilization policies and practices of 
     the entities carrying out mainstream programs, as identified 
     in the 2 reports described in section 102(a)(5)(B), to ensure 
     that persons experiencing homelessness are able to access and 
     utilize the programs; and
       ``(cc) local policies and practices relating to zoning and 
     enforcement of local statutes,

[[Page S4869]]

     to ensure that the policies and practices allow reasonable 
     inclusion and distribution in the geographic area of special 
     needs populations and families with children; and
       ``(III) in conducting the review, determine the 
     modifications and corrective actions that need to be taken, 
     and by whom, to ensure that the relevant policies and 
     practices do not stimulate, or prolong, homelessness in the 
     geographic area;
       ``(ii) inform the entities of the determinations described 
     in clause (i); and
       ``(iii) once every 3 years, prepare for inclusion in any 
     application reviewed by the Board and submitted to the 
     Secretary under section 422, the determinations described in 
     clause (i), in the form of an exhibit entitled `Assessment of 
     Relevant Policies and Practices, and Needed Corrective 
     Actions to End and Prevent Homelessness'; and
       ``(C) if the Board designs and carries out the projects, 
     design and carry out the projects in such a manner as to 
     further the goal described in subparagraph (A);
       ``(2) require, consistent with the Government Performance 
     and Results Act of 1993 and amendments made by that Act, that 
     recipients and project sponsors who are funded by grants 
     received under such subtitles implement and maintain an 
     outcome-based evaluation of their projects that measures 
     effective and timely delivery of housing or services and 
     whether provision of such housing or services results in 
     preventing or ending homelessness for the persons that such 
     recipients and project sponsors serve;
       ``(3) require, consistent with the Government Performance 
     and Results Act of 1993 and amendments made by that Act, 
     outcome-based evaluation of the Board's homeless assistance 
     planning process to measure the Board's performance in 
     preventing or ending the homelessness of persons in the 
     Board's geographic area; and
       ``(4) participate in the Consolidated Plan for the 
     geographic area served by the Board.'';
       (4) by inserting after section 403 (as redesignated in 
     paragraph (2)) the following:

     ``SEC. 404. TECHNICAL ASSISTANCE.

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

     ``SEC. 405. PERFORMANCE REPORTS.

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

     ``SEC. 407. AUTHORIZATION OF APPROPRIATIONS.

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

     SEC. 5. EMERGENCY SHELTER GRANTS PROGRAM.

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

     ``SEC. 412. GRANT ASSISTANCE.

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

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

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

     ``SEC. 414. ELIGIBLE ACTIVITIES.

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

     SEC. 6. HOMELESS ASSISTANCE PROGRAM.

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

[[Page S4870]]

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

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

     ``SEC. 421. PURPOSES.

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

     ``SEC. 422. COMMUNITY HOMELESS ASSISTANCE PROGRAM.

       ``(a) Eligible Applicant.--In this section, the term 
     `eligible applicant' means a collaborative applicant or solo 
     applicant.
       ``(b) Projects.--The Secretary shall award grants to 
     eligible applicants to carry out homeless assistance and 
     prevention projects.
       ``(c) Notification of Funding Availability.--The Secretary 
     shall release a Notification of Funding Availability for 
     grants awarded under this subtitle for a fiscal year not 
     later than 3 months after the date of enactment of the 
     appropriate Act making appropriations for the Department of 
     Housing and Urban Development for the fiscal year.
       ``(d) Applications.--
       ``(1) In general.--To receive a grant under subsection (b), 
     an eligible applicant shall submit an application for the 
     grant to a Board in accordance with the collaborative process 
     established by the Board, as described in section 402, and 
     have such application reviewed, approved, and prioritized by 
     such Board, except that a solo applicant may submit such 
     application to the Secretary without participating in such 
     process if the applicant includes information in such 
     application regarding why the applicant has not participated.
       ``(2) Submission to the secretary.--To receive the grant, 
     after receiving approval from the Board for the application, 
     the eligible applicant shall submit an application to the 
     Secretary at such time and in such manner as the Secretary 
     may require, and containing--
       ``(A) the application submitted to the Board; and
       ``(B) other information that, in addition to including the 
     information described in subsections (a) and (c) of section 
     426, shall--
       ``(i) describe the establishment and function of the Board, 
     including--

       ``(I) the nomination and selection process for such Board, 
     including the names and affiliations of all such Board 
     members;
       ``(II) all meetings held by such Board in preparing the 
     collaborative application, including identification of those 
     meetings that were public; and
       ``(III) all meetings between Board representatives, and 
     persons responsible for administering the Consolidated Plan;

       ``(ii) outline the range of housing and service programs 
     available to persons experiencing homelessness or imminently 
     at risk of experiencing homelessness and describe the unmet 
     needs that remain in the geographic area for which the 
     collaborative applicant seeks funding regarding--

       ``(I) prevention activities, including providing assistance 
     in--

       ``(aa) making mortgage, rent, or utility payments; or
       ``(bb) accessing permanent housing and transitional housing 
     for individuals (and families that include the individuals) 
     who are being discharged from a publicly funded facility, 
     program, or system of care, or whose services (from such a 
     facility, program, or system of care) are being terminated;

       ``(II) outreach activities to assess the needs and 
     conditions of persons experiencing homelessness;
       ``(III) emergency shelters, including the supportive and 
     referral services the shelters provide;
       ``(IV) transitional housing with, as needed, appropriate 
     supportive services to help persons experiencing homelessness 
     who are not yet able or prepared to make the transition to 
     permanent housing and independent living;
       ``(V) permanent housing to help meet the long-term needs of 
     individuals and families experiencing homelessness; and
       ``(VI) needed supportive services;

       ``(iii) prioritize the projects for which the collaborative 
     applicant seeks funding according to the unmet needs in the 
     fiscal year in which the applicant submits the application as 
     described in clause (ii);
       ``(iv) identify funds from private and public sources, 
     other than funds received under subtitles B and C, that the 
     State, units of general local government, recipients, project 
     sponsors, and others will use for homelessness prevention, 
     emergency shelter, supportive services, transitional housing, 
     and permanent housing, that will be integrated with the 
     assistance provided under subtitles B and C;
       ``(v) identify funds provided by the State and units of 
     general local government under programs targeted for persons 
     experiencing homelessness, and other programs for which 
     persons experiencing homelessness are eligible, including 
     programs identified by the General Accounting Office in the 
     February 1999 report entitled `Homelessness: Coordination and 
     Evaluation of Programs Are Essential';
       ``(vi) explain--

       ``(I) how the collaborative applicant will meet the housing 
     and service needs of individuals and families experiencing 
     homelessness in the applicant's community; and
       ``(II) the strategy of the State, units of general local 
     government, and private entities in the geographic area over 
     the next 5 years to prevent and end homelessness, including, 
     as part of that strategy, a work plan for the applicable 
     fiscal years;

       ``(vii) report on the outcome-based performance of the 
     homeless programs within the geographic area served by the 
     collaborative applicant that were funded under this title in 
     the fiscal year prior to the fiscal year in which the 
     application is submitted;
       ``(viii) include any relevant required agreements under 
     subtitle C;
       ``(ix) contain a certification of consistency with the 
     Consolidated Plan pursuant to section 403; and
       ``(x)(I) in the case of a collaborative applicant, include 
     an exhibit described in section 402(f)(1)(B)(iii) and 
     prepared by the Board in accordance with that section; or
       ``(II) in the case of a solo applicant, include an exhibit 
     described in section 402(f)(1)(B)(iii) and prepared by the 
     applicant.
       ``(3) Announcement of awards.--The Secretary shall 
     announce, not later than 5 months after the last date for the 
     submission of applications described in this subsection for a 
     fiscal year, the grants awarded under subsection (b) for that 
     fiscal year.
       ``(4) Obligation, distribution, and utilization of funds.--
       ``(A) Requirements for obligation.--
       ``(i) In general.--Not later than 9 months after the 
     announcement referred to in paragraph (3), each recipient or 
     project sponsor seeking the obligation of funds for a grant 
     announced under paragraph (3) shall meet all requirements for 
     the obligation of those funds, including site control, 
     matching funds, and environmental review requirements, except 
     as provided in clause (ii).
       ``(ii) Acquisition, rehabilitation, or construction.--Not 
     later than 15 months after the announcement referred to in 
     paragraph (3), each recipient or project sponsor seeking the 
     obligation of funds for acquisition of housing, 
     rehabilitation of housing, or construction of new housing for 
     a grant announced under paragraph (3) shall meet all 
     requirements for the obligation of those funds, including 
     site control, matching funds, and environmental review 
     requirements.
       ``(iii) Extensions.--At the discretion of the Secretary, 
     and in compelling circumstances, the Secretary may extend the 
     date by which a recipient or project sponsor shall meet the 
     requirements described in clause (i) if the Secretary 
     determines that compliance with the requirements was delayed 
     due to factors beyond the reasonable control of the recipient 
     or project sponsor. Such factors may include difficulties in 
     obtaining site control for a proposed project, completing the 
     process of obtaining secure financing for the project, or 
     completing the technical submission requirements for the 
     project.
       ``(B) Obligation.--Not later than 45 days after a recipient 
     or project sponsor meets the requirements described in 
     subparagraph (A)(i), the Secretary shall obligate the funds 
     for the grant involved.
       ``(C) Distribution.--A recipient that receives funds 
     through such a grant--
       ``(i) shall distribute the funds to project sponsors (in 
     advance of expenditures by the project sponsors); and
       ``(ii) shall distribute the appropriate portion of the 
     funds to a project sponsor not later than 21 days after 
     receiving a request for such distribution from the project 
     sponsor.
       ``(e) Selection Criteria.--In determining whether to award 
     a grant to an applicant under subsection (b), the Secretary 
     shall consider, in addition to criteria described in section 
     426(b)--
       ``(1) the inclusiveness of the Board involved and the 
     process the Board administered, if applicable;
       ``(2) the comprehensiveness and coordination of the 
     homelessness prevention, housing, and services programs 
     (including discharge planning and service termination 
     protocols) within the geographic area served by the Board;
       ``(3) the extent to which prioritized programs meet unmet 
     needs;
       ``(4) the capacity of the geographic area to leverage 
     funding from other public and private sources;
       ``(5) the long-term strategy of the applicable States and 
     units of general local government to combat, prevent, and end 
     homelessness;
       ``(6) the performance of the homelessness prevention, 
     housing, and services programs funded in the fiscal year 
     prior to the date of submission of the application;
       ``(7) the need for services in the geographic area;
       ``(8) the plan by which--
       ``(A) access to appropriate permanent housing will be 
     secured if the proposed project does not include permanent 
     housing; and

[[Page S4871]]

       ``(B) access to outcome-effective supportive services will 
     be secured for residents or consumers involved in the project 
     who are willing to use the services;
       ``(9) the evaluation plan for evaluations of the project, 
     which--
       ``(A) will use periodically collected information and 
     analysis to determine whether the project has resulted in 
     enhanced stability and well-being of the residents or 
     consumers served by the project;
       ``(B) will include evaluations obtained directly from the 
     individuals or families served by the project; and
       ``(C) will be submitted by the recipient for the grant to 
     the Board for review and use in assessments, conducted by the 
     Board consistent with the Board's duty to ensure effective 
     outcomes that contribute to the goal of preventing and ending 
     homelessness in the geographic area served by the Board; and
       ``(10) any other criteria the Secretary determines to be 
     reasonably appropriate.
       ``(f) Notification of Pro Rata Estimated Grant Amounts.--
       ``(1) Notice.--The Secretary shall inform each Board, at a 
     time concurrent with the release of the Notice of Funding 
     Availability for the grants, of the pro rata estimated grant 
     amount under this subtitle for the geographic area 
     represented by the Board.
       ``(2) Amount.--
       ``(A) Basis.--Such estimated grant amount shall be based on 
     a percentage of the total funds available, or estimated to be 
     available, to carry out this subtitle for any fiscal year 
     that is equal to the percentage of the total amount available 
     for section 106 of the Housing and Community Development Act 
     of 1974 (42 U.S.C. 5306) for the prior fiscal year that--
       ``(i) was allocated to all metropolitan cities and urban 
     counties within the geographic area represented by the Board; 
     or
       ``(ii) would have been distributed to all counties within 
     such geographic area that are not urban counties, if the 30 
     percent portion of the allocation to the State involved (as 
     described in subsection (d)(1) of that section 106) for that 
     year had been distributed among the counties that are not 
     urban counties in the State in accordance with the formula 
     specified in that subsection (with references in that 
     subsection to nonentitlement areas considered to be 
     references to those counties).
       ``(B) Rule.--In computing the estimated grant amount, the 
     Secretary shall adjust the estimated grant amount determined 
     pursuant to subparagraph (A) to ensure that--
       ``(i) 75 percent of the total funds available, or estimated 
     to be available, to carry out this subtitle for any fiscal 
     year are allocated to the metropolitan cities and urban 
     counties that received a direct allocation of funds under 
     section 413 for the prior fiscal year; and
       ``(ii) 25 percent of the total funds available, or 
     estimated to be available, to carry out this subtitle for any 
     fiscal year are allocated--

       ``(I) to the metropolitan cities and urban counties that 
     did not receive a direct allocation of funds under section 
     413 for the prior fiscal year; and
       ``(II) to counties that are not urban counties.

       ``(C) Combinations or consortia.--For Boards that represent 
     a combination or consortium of cities or counties, the 
     estimated grant amount shall be the sum of the estimated 
     grant amounts for the cities or counties represented by the 
     Board.
       ``(g) Appeals.--
       ``(1) In general.--Not later than 3 months after the date 
     of enactment of the Community Partnership to End Homelessness 
     Act of 2002, the Secretary shall establish a timely appeal 
     procedure for grant amounts awarded or denied under this 
     subtitle pursuant to a collaborative application or solo 
     application for funding.
       ``(2) Process.--The Secretary shall ensure that the 
     procedure permits appeals submitted by Boards, entities 
     carrying out homeless housing and services projects 
     (including emergency shelters and homelessness prevention 
     programs), homeless planning bodies not designated by the 
     Secretary as Boards, and all other applicants under this 
     subtitle.
       ``(h) Solo Applicants.--A solo applicant may submit an 
     application to the Secretary for a grant under subsection (b) 
     and be awarded such grant on the same basis as such grants 
     are awarded to other applicants based on the criteria 
     described in subsection (e). The Secretary may award such 
     grants directly to such applicants in a manner determined to 
     be appropriate by the Secretary.

     ``SEC. 423. ELIGIBLE ACTIVITIES.

       ``(a) In General.--The Secretary may award grants to 
     qualified applicants under section 422 to carry out homeless 
     assistance and prevention projects that consist of 1 or more 
     of the following eligible activities:
       ``(1) Construction of new housing units to provide 
     transitional or permanent housing.
       ``(2) Acquisition or rehabilitation of a structure to 
     provide transitional or permanent housing, other than 
     emergency shelter, or to provide supportive services.
       ``(3) Leasing of property, or portions of property, not 
     owned by the recipient or project sponsor involved, for use 
     in providing transitional or permanent housing, or providing 
     supportive services.
       ``(4) Provision of rental assistance to provide 
     transitional or permanent housing to eligible persons. The 
     rental assistance may include tenant-based, project-based, or 
     independently owned rental assistance.
       ``(5) Payment of operating costs for housing units assisted 
     under this subtitle.
       ``(6) Supportive services, except that beginning 3 years 
     after the date of enactment of the Community Partnership to 
     End Homelessness Act of 2002, for both new and renewal 
     projects, the only allowable supportive services will be case 
     management, life skills training, outreach, housing 
     counseling, and other services determined by the Secretary 
     (either at the Secretary's initiative or on the basis of 
     adequate justification by an applicant) to be directly 
     relevant to allowing persons experiencing homelessness to 
     access and retain housing.
       ``(7) Homeless management information services.
       ``(8) Monitoring and evaluation activities related to--
       ``(A) measuring the outcomes of a Board's homeless 
     assistance planning process for preventing and ending 
     homelessness; and
       ``(B)(i) the effective and timely implementation of 
     specific projects funded under this subtitle, relative to 
     projected outcomes; and
       ``(ii) in the case of a housing project funded under this 
     subtitle, compliance with appropriate standards of housing 
     quality and habitability as determined by the Secretary.
       ``(9) Prevention activities, including--
       ``(A) providing financial assistance to individuals or 
     families who have received eviction notices, foreclosure 
     notices, or notices of termination of utility services if, in 
     the case of such an individual or family--
       ``(i) the inability of the individual or family to make the 
     required payments is due to a sudden reduction in income;
       ``(ii) the assistance is necessary to avoid the eviction, 
     foreclosure, or termination of services; and
       ``(iii) there is a reasonable prospect that the individual 
     or family will be able to resume the payments within a 
     reasonable period of time; and
       ``(B) carrying out relocation activities (including 
     providing security or utility deposits, rental assistance for 
     a final month at a location, assistance with moving costs, or 
     rental assistance for not more than 6 months) for moving into 
     transitional or permanent housing, individuals, and families 
     that include such individuals--
       ``(i) who lack housing;
       ``(ii) who are being discharged from a publicly funded 
     acute care or long-term care facility, program, or system of 
     care, or whose services (from such a facility, program, or 
     system of care) are being terminated; and
       ``(iii) who have plans, developed collaboratively by the 
     public entities involved and the individuals and families, 
     for securing or maintaining housing after any funding 
     provided under this subtitle is utilized.
       ``(b) Eligibility for Funds for Prevention Activities.--To 
     be eligible to receive grant funds under section 422 to carry 
     out the prevention activities described in subsection (a)(9), 
     an applicant shall submit an application to the Secretary 
     under section 422 that shall include a certification in 
     which--
       ``(1) the relevant public entities in the geographic area 
     involved certify compliance with subsection (c); and
       ``(2) the publicly funded institutions, facilities, and 
     systems of care in the geographic area certify that the 
     institutions, facilities, and systems of care will take, and 
     fund directly, all reasonable measures to ensure that the 
     institutions, facilities, and systems of care do not 
     discharge individuals into homelessness.
       ``(c) Supplement, Not Supplant.--Funds appropriated under 
     section 407 and made available for prevention activities 
     described in subsection (a)(9) shall be used to supplement 
     and not supplant other Federal, State, and local public funds 
     used for homelessness prevention.
       ``(d) Use Restrictions.--
       ``(1) Acquisition, rehabilitation, and new construction.--A 
     project that consists of activities described in paragraph 
     (1) or (2) of subsection (a) shall be operated for the 
     purpose specified in the application submitted for the 
     project under section 422 for not less than 20 years.
       ``(2) Other activities.--A project that consists of 
     activities described in any of paragraphs (3) through (9) of 
     subsection (a) shall be operated for the purpose specified in 
     the application submitted for the project under section 422 
     for the duration of the grant period involved.
       ``(3) Conversion.--If the recipient or project sponsor 
     carrying out a project that provides transitional or 
     permanent housing submits a request to the Secretary to carry 
     out instead a project for the direct benefit of low-income 
     persons, and the Secretary determines that the initial 
     project is no longer needed to provide transitional or 
     permanent housing, the Secretary may approve the project 
     described in the request and authorize the recipient or 
     project sponsor to carry out that project.
       ``(e) Incentives To Create New Permanent Housing Stock.--
       ``(1) In general.--In making grants to eligible applicants 
     under section 422, the Secretary shall make awards that 
     provide incentives described in paragraph (2) to promote the 
     creation of new permanent housing units through the 
     construction, or acquisition and rehabilitation, of permanent 
     housing units, that are owned by a recipient, project 
     sponsor, or other independent entity who entered into a 
     contract with a recipient or project sponsor, for--

[[Page S4872]]

       ``(A)(i) homeless individuals with disabilities who 
     experience chronic homelessness; or
       ``(ii) homeless families that include a homeless individual 
     with a disability who experiences chronic homelessness; and
       ``(B) nondisabled homeless families.
       ``(2) Assistance.--
       ``(A) Individuals with disabilities.--An eligible applicant 
     that receives assistance under section 422 to implement a 
     project that involves the construction, or acquisition and 
     rehabilitation, of new permanent housing units described in 
     paragraph (1), for individuals and families described in 
     paragraph (1)(A), shall also receive, as part of the grant, 
     incentives consisting of--
       ``(i) funds sufficient to provide not more than 10 years of 
     rental assistance, renewable in accordance with section 428;
       ``(ii) in a case in which the project is the highest 
     priority project described in the application, a bonus of not 
     more than $250,000 per collaborative or solo application 
     submitted by the eligible applicant under this subtitle to 
     carry out activities described in section 423; and
       ``(iii) the technical assistance needed to ensure the 
     financial viability and programmatic effectiveness of the 
     project.
       ``(B) Nondisabled homeless families.--An eligible applicant 
     that receives assistance under section 422 to implement a 
     project that involves the construction, or acquisition and 
     rehabilitation, of new permanent housing units described in 
     paragraph (1), for nondisabled homeless families, shall also 
     receive incentives consisting of--
       ``(i) in a case in which the project is the highest 
     priority project described in the application, a bonus of not 
     more than $250,000 per collaborative or solo application 
     submitted by the eligible applicant under this subtitle to 
     carry out activities described in section 423; and
       ``(ii) the technical assistance needed to ensure the 
     financial viability and programmatic effectiveness of the 
     project.
       ``(3) Eligible applicants.--To be eligible to receive a 
     grant under this subtitle to carry out activities to create 
     new permanent housing stock for individuals and families 
     described in paragraph (1), an applicant shall be a private 
     nonprofit organization or a public housing authority.
       ``(4) Location.--To the extent practicable, a Board that 
     receives a grant under this subtitle to create new permanent 
     housing stock shall ensure that the housing is located in a 
     mixed-income environment.
       ``(f) Repayment of Assistance and Prevention of Undue 
     Benefits.--
       ``(1) Repayment.--If a recipient or project sponsor 
     receives assistance under section 422 to carry out a project 
     that consists of activities described in paragraph (1) or (2) 
     of subsection (a) and the project ceases to provide 
     transitional or permanent housing--
       ``(A) earlier than 10 years after operation of the project 
     begins, the Secretary shall require the recipient or project 
     sponsor to repay 100 percent of the assistance; or
       ``(B) not earlier than 10 years, but earlier than 20 years, 
     after operation of the project begins, the Secretary shall 
     require the recipient or project sponsor to repay 10 percent 
     of the assistance for each of the years in the 20-year period 
     for which the project fails to provide that housing.
       ``(2) Prevention of undue benefits.--Except as provided in 
     paragraph (3), if any property is used for a project that 
     receives assistance under subsection (a) and consists of 
     activities described in paragraph (1) or (2) of subsection 
     (a), and the sale or other disposition of the property occurs 
     before the expiration of the 20-year period beginning on the 
     date that operation of the project begins, the recipient or 
     project sponsor who received the assistance shall comply with 
     such terms and conditions as the Secretary may prescribe to 
     prevent the recipient or project sponsor from unduly 
     benefiting from such sale or disposition.
       ``(3) Exception.--A recipient or project sponsor shall not 
     be required to make the repayments, and comply with the terms 
     and conditions, required under paragraph (1) or (2) if--
       ``(A) the sale or disposition of the property used for the 
     project results in the use of the property for the direct 
     benefit of very low-income persons; or
       ``(B) all of the proceeds of the sale or disposition are 
     used to provide transitional or permanent housing meeting the 
     requirements of this subtitle.'';
       (3) in section 426 (42 U.S.C. 11386)--
       (A) in subsection (a)--
       (i) in paragraph (1), by striking ``Applications'' and all 
     that follows through ``shall'' and inserting ``Applications 
     for assistance under section 422 shall'';
       (ii) in paragraph (2)--

       (I) by striking subparagraph (B) and inserting the 
     following:

       ``(B) a description of the size and characteristics of the 
     population that would occupy housing units or receive 
     supportive services assisted under this subtitle;''; and

       (II) in subparagraph (E), by striking ``in the case of 
     projects assisted under this title that do not receive 
     assistance under such sections,''; and

       (iii) in paragraph (3), in the last sentence, by striking 
     ``recipient'' and inserting ``recipient or project sponsor'';
       (B) in subsection (d), in the first sentence, by striking 
     ``recipient'' and inserting ``recipient or project sponsor'';
       (C) by striking subsection (e);
       (D) by redesignating subsections (f), (g), and (h), as 
     subsections (e), (f), and (g), respectively;
       (E) in subsection (f) (as redesignated in subparagraph 
     (D)), in the first sentence, by striking ``recipient'' each 
     place it appears and inserting ``recipient or project 
     sponsor'';
       (F) by striking subsection (i); and
       (G) by redesignating subsection (j) as subsection (h);
       (4)(A) by repealing section 429 (42 U.S.C. 11389); and
       (B) by redesignating sections 427 and 428 (42 U.S.C. 11387, 
     11388) as sections 432 and 433, respectively; and
       (5) by inserting after section 426 the following:

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

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

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

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

     ``SEC. 429. ADMINISTRATIVE EXPENSES.

       ``(a) Administrative Expenses.--Grant amounts awarded under 
     this subtitle may be

[[Page S4873]]

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

     ``SEC. 430. MATCHING FUNDING.

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

     ``SEC. 431. APPEAL PROCEDURE.

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

     SEC. 7. REPEALS AND CONFORMING AMENDMENTS.

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

                          ____________________