[Congressional Record Volume 153, Number 86 (Thursday, May 24, 2007)]
[Senate]
[Pages S6879-S6889]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mr. REED (for himself, Mr. Allard, Ms. Mikulski, Mr. Bond, Mr. 
        Durbin, Ms. Collins, Mr. Schumer, Mr. Akaka, Mrs. Clinton, Mr. 
        Whitehouse, Mr. Levin, Mr. Brown, and Mrs. Boxer):
  S. 1518. 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 introduce, along with Senators Allard, 
Mikulski, Bond, Durbin, Collins, Schumer, Akaka, Clinton, Whitehouse, 
Levin, Brown, and Boxer, the Community Partnership to End Homelessness 
Act of 2007, CPEHA. This legislation would reauthorize and amend the 
housing titles of the McKinney-Vento Homeless Assistance Act of 1987. 
Specifically, our bill would realign the incentives behind the 
Department of Housing and Urban Development's homelessness assistance 
programs to accomplish the goals of preventing and ending homelessness.

[[Page S6880]]

  According to the Homelessness Research Institute at the National 
Alliance to End Homelessness, as many as 3.5 million Americans 
experience homelessness each year. On any one night, approximately 
744,000 men, women, and children are without homes.
  Many of these people have served our country in uniform. According to 
the National Coalition for Homeless Veterans, nearly 200,000 veterans 
of the United States armed forces are homeless on any given night, and 
about one-third of homeless men are veterans.
  Statistics regarding the number of children who experience 
homelessness are especially troubling. Each year, it is estimated that 
at least 1.35 million children experience homelessness. Over 900,000 
homeless children and youth were identified and enrolled in public 
schools in the 2005-2006 school year. However, this Department of 
Education count does not include preschool children, and over 40 
percent of homeless children are under the age of five. Whatever their 
age, we know that children who are homeless are in poorer health, have 
developmental delays, and suffer academically.
  In addition, many of those who are homeless have a disability. 
According to the Homelessness Research Institute, about 23 percent of 
homeless people were found to be ``chronically homeless,'' which 
according to the current HUD definition means that they are homeless 
for long periods of time or homeless repeatedly, and they have a 
disability. For many of these individuals and families, housing alone, 
without some attached services, may not be enough.
  Finally, as rents have soared and affordable housing units have 
disappeared from the market during the past several years, even more 
working Americans have been left unable to afford housing. According to 
the National Low Income Housing Coalition's most recent ``Out of 
Reach'' report, nowhere in the country can a minimum wage earner afford 
a one-bedroom home. Eighty-eight percent of renters in cities live in 
areas where they cannot afford the fair market rent for a two-bedroom 
rental even with two minimum wage jobs. Low income renters who live 
paycheck to paycheck are in precarious circumstances and sometimes must 
make tough choices between paying rent and buying food, prescription 
drugs, or other necessities. If one unforeseen event occurs in their 
lives, they can end up homeless.
  So why should the Federal Government work to help prevent and end 
homelessness? Simply put, we cannot afford not to address this problem. 
Homelessness leads to untold costs, including expenses for emergency 
rooms, jails, shelters, foster care, detoxification, and emergency 
mental health treatment.
  According to a number of studies, it costs just as much, if not more 
in overall expenditures, to allow men, women, and children to remain 
homeless as it does to provide them with assistance and get them back 
on the road to self-sufficiency.
  It has been 20 years since the enactment of the Steward B. McKinney 
Homeless Assistance Act, and we have learned a lot about the problem of 
homelessness since then. At the time of its adoption in 1987, this 
legislation was viewed as an emergency response to a national crisis, 
and was to be followed by measures to prevent homelessness and to 
create more systemic solutions to the problem. It is now time to take 
what we have learned during the past 20 years, and put those best 
practices and proposals into action.
  First and foremost, our bill would consolidate HUD's three main 
competitive homelessness programs, Supportive Housing Program, Shelter 
Plus Care, and Moderate Rehabilitation/Single Room Occupancy, into one 
program called the Community Homeless Assistance Program. The 
consolidation would reduce the administrative burden on communities 
caused by different program requirements. It also would allow funding 
to be used for an array of eligible activities maximizing flexibility, 
creativity, and local-decision making.
  Second, the bill would create a new prevention title that would allow 
communities to apply for funding to prevent homelessness. This would 
allow them to serve people who move frequently for economic reasons, 
are doubled up, are about to be evicted, live in severely overcrowded 
housing, or otherwise live in an unstable situation that puts them at 
risk of homelessness. The program could fund short- to medium-term 
housing assistance, housing relocation and stabilization, and 
supportive services. The program would be authorized for up to $250 
million in fiscal year 2008.
  Third, the bill would create a more flexible set of requirements for 
rural communities by modifying HUD's long-dormant Rural Homelessness 
Grant Program. Under the new requirements, a rural community could use 
funds for homelessness prevention and housing stabilization, in 
addition to transitional housing, permanent housing, and supportive 
services. The application process for these funds would be streamlined 
to be more consistent with the capacities of rural homelessness 
programs.
  Fourth, HUD would be required to provide incentives for communities 
to use proven strategies to end homelessness. These strategies would 
include permanent supportive housing for chronically homeless people, 
rapid rehousing programs for homeless families, and other research-
based strategies that HUD, after public comment, determines are 
effective.
  Fifth, thirty percent of total funds available nationally would be 
allocated for permanent housing for individuals with disabilities or 
families headed by a person with disabilities. At least 10 percent of 
overall funds would be allocated for permanently housing families with 
children.
  Sixth, communities that demonstrate results, reducing the number of 
people who become homeless, the length of time people are homeless, and 
recidivism back into homelessness--would be allowed to use their 
homeless assistance funding more flexibly and to serve groups that are 
at risk of becoming homeless.
  Finally, leasing, rental assistance, and operating costs of permanent 
housing programs would be renewed for 1 year at a time through the 
section 8 housing voucher account, provided that the applicant 
demonstrates need and compliance with appropriate standards.
  There is a growing consensus on ways to help communities break the 
cycle of repeated and prolonged homelessness. If we combine Federal 
dollars with the right incentives to local communities, we can prevent 
and end long-term homelessness.
  This bipartisan legislation seeks to do just that. It will reward 
communities for initiatives that prevent and end homelessness.
  Groups that are endorsing the Community Partnership to End 
Homelessness Act include: The National Alliance to End Homelessness; 
the U.S. Conference of Mayors; the National Association of Counties; 
National Association of Local Housing Finance Agencies; National 
Community Development Association; the National Housing Conference; the 
Corporation for Supportive Housing; National Alliance on Mental 
Illness; Consortium for Citizens With Disabilities Housing Task Force; 
Habitat for Humanity; Technical Assistance Collaborative; and the 
Housing Assistance Council.
  The Community Partnership to End Homelessness Act will set us on the 
path to meeting an important national goal. I hope my colleagues will 
join us in supporting this bill and other homelessness prevention 
efforts.
  Mr. President, I ask unanimous consent that the text of the bill be 
printed in the Record.
  There being no objection, the text of the bill was ordered to be 
printed in the Record, as follows:

                                S. 1518

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

     SECTION 1. SHORT TITLE; TABLE OF CONTENTS.

       (a) Short Title.--This Act may be cited as the ``Community 
     Partnership to End Homelessness Act of 2007''.
       (b) Table of Contents.--The table of contents for this Act 
     is as follows:

Sec. 1. Short title; table of contents.
Sec. 2. Findings and purpose.
Sec. 3. United States Interagency Council on Homelessness.
Sec. 4. Housing assistance general provisions.
Sec. 5. Emergency homelessness prevention and shelter grants program.
Sec. 6. Homeless assistance program.
Sec. 7. Rural housing stability assistance.

[[Page S6881]]

Sec. 8. Funds to prevent homelessness and stabilize housing for 
              precariously housed individuals and families.
Sec. 9. Repeals and conforming amendments.
Sec. 10. Effective date.

     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, children, and 
     youth;
       ``(4) homeless assistance programs must be evaluated on the 
     basis of their effectiveness in reducing homelessness, 
     transitioning individuals and families to permanent housing 
     and stability, and optimizing their self-sufficiency;
       ``(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 Government Accountability Office 
     entitled `Homelessness: Coordination and Evaluation of 
     Programs Are Essential', issued February 26, 1999; or
       ``(ii) a report by the Government Accountability 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 and optimize self-
     sufficiency 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 decision 
     makers 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, community, and system 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) the results of Federal programs targeted for persons 
     experiencing homelessness have been positive.
       ``(b) Purpose.--It is the purpose of this Act--
       ``(1) to create a unified and performance-based process for 
     allocating and administering funds under title IV;
       ``(2) to encourage comprehensive, collaborative local 
     planning of housing and services programs for persons 
     experiencing homelessness;
       ``(3) to focus the resources and efforts of the public and 
     private sectors on ending and preventing homelessness;
       ``(4) to provide funds for programs to assist individuals 
     and families in the transition from homelessness, and to 
     prevent homelessness for those vulnerable to homelessness;
       ``(5) 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, and the shelter plus care 
     program) into a single program with specific eligible 
     activities;
       ``(6) to allow flexibility and creativity in re-thinking 
     solutions to homelessness, including alternative housing 
     strategies, outcome-effective service delivery, and the 
     involvement of persons experiencing homelessness in decision-
     making regarding opportunities for their long-term stability, 
     growth, well-being, and optimum self-sufficiency; and
       ``(7) to ensure that multiple Federal agencies are involved 
     in the provision of housing, health care, human services, 
     employment, and education assistance, as appropriate for the 
     missions of the agencies, to persons experiencing 
     homelessness, 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 a United 
     States Interagency Council on Homelessness to advance such 
     coordination.''.

     SEC. 3. UNITED STATES 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 201 (42 U.S.C. 11311), by striking the 
     period at the end and inserting the following: ``whose 
     mission shall be to develop and coordinate the implementation 
     of a national strategy to prevent and end homelessness while 
     maximizing the effectiveness of the Federal Government in 
     contributing to an end to homelessness in the United 
     States.'';
       (2) in section 202 (42 U.S.C. 11312)--
       (A) in subsection (a)--
       (i) by striking ``(16)'' and inserting ``(19)''; and
       (ii) by inserting after paragraph (15) the following:
       ``(16) The Commissioner of Social Security, or the designee 
     of the Commissioner.
       ``(17) The Attorney General of the United States, or the 
     designee of the Attorney General.
       ``(18) The Director of the Office of Management and Budget, 
     or the designee of the Director.'';
       (B) in subsection (c), by striking ``annually'' and 
     inserting ``2 times each year''; and
       (C) 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 United States 
     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 (as identified in a report by the 
     Government Accountability Office entitled `Homelessness: 
     Barriers to Using Mainstream Programs', issued July 6, 2000) 
     by persons experiencing homelessness, to eliminate the 
     barriers to participation in those programs, to implement a 
     Federal plan to prevent and end homelessness, and to identify 
     Federal resources that can be expended to prevent and end 
     homelessness.'';
       (3) in section 203(a) (42 U.S.C. 11313(a))--
       (A) by redesignating paragraphs (1), (2), (3), (4), (5), 
     (6), and (7) as paragraphs (2), (3), (4), (5), (8), (9), and 
     (10), respectively;
       (B) by inserting before paragraph (2), as redesignated by 
     subparagraph (A), the following:
       ``(1) not later than 1 year after the date of enactment of 
     the Community Partnership to End Homelessness Act of 2007, 
     develop and submit to the President and to Congress a 
     National Strategic Plan to End Homelessness;'';
       (C) in paragraph (5), as redesignated by subparagraph (A), 
     by striking ``at least 2, but in no case more than 5'' and 
     inserting ``not less than 5, but in no case more than 10''; 
     and
       (D) by inserting after paragraph (5), as redesignated by 
     subparagraph (A), the following:
       ``(6) encourage the creation of State Interagency Councils 
     on Homelessness and the formulation of multi-year plans to 
     end homelessness at State, city, and county levels;
       ``(7) develop mechanisms to ensure access by persons 
     experiencing homelessness to all Federal, State, and local 
     programs for which the persons are eligible, and to verify 
     collaboration among entities 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 
     mainstream programs identified by the Government 
     Accountability Office in the 2 reports described in section 
     102(a)(5)(B);''; and
       (4) by striking section 208 (42 U.S.C. 11318) and inserting 
     the following:

     ``SEC. 208. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     title $3,000,000 for fiscal year 2008 and such sums as may be 
     necessary for fiscal years 2009, 2010, 2011, and 2012.''.

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

     ``SEC. 401. DEFINITIONS.

       ``In this title, the following definitions shall apply:
       ``(1) Chronically homeless.--

[[Page S6882]]

       ``(A) In general.--The term `chronically homeless', used 
     with respect to an individual or family, means an individual 
     or family who--
       ``(i) is homeless and lives or resides in a place not meant 
     for human habitation or in an emergency shelter;
       ``(ii) has been homeless and living or residing in a place 
     not meant for human habitation or in an emergency shelter 
     continuously for at least 1 year or on at least 4 separate 
     occasions in the last 3 years; and
       ``(iii) has an adult head of household with a diagnosable 
     substance use disorder, serious mental illness, 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 chronic physical illness or disability, 
     including the co-occurrence of 2 or more of those conditions.
       ``(2) Collaborative applicant.--The term `collaborative 
     applicant' means an entity that--
       ``(A) carries out the duties specified in section 402;
       ``(B) serves as the applicant for project sponsors who 
     jointly submit a single application for a grant under 
     subtitle C in accordance with a collaborative process; and
       ``(C) if the entity is a legal entity and is 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; and
       ``(B) is submitted 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 entity, a private 
     entity, or an entity that is a combination of public and 
     private entities, that is 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) Legal entity.--The term `legal entity' means--
       ``(A) an entity described in section 501(c)(3) of the 
     Internal Revenue Code of 1986 and exempt from tax under 
     section 501(a) of that Code;
       ``(B) an instrumentality of State or local government; or
       ``(C) a consortium of instrumentalities of State or local 
     governments that has constituted itself as an entity.
       ``(9) 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)).
       ``(10) New.--The term `new', used with respect to housing, 
     means housing for which no assistance has been provided under 
     this title.
       ``(11) Operating costs.--The term `operating costs' means 
     expenses incurred by a project sponsor operating transitional 
     housing or permanent housing 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; or
       ``(C) coordination of services as needed to ensure long-
     term housing stability.
       ``(12) Outpatient health services.--The term `outpatient 
     health services' means outpatient health care services, 
     mental health services, and outpatient substance abuse 
     treatment services.
       ``(13) Permanent housing.--The term `permanent housing' 
     means community-based housing without a designated length of 
     stay, and includes permanent supportive housing for homeless 
     individuals with disabilities and homeless families that 
     include such an individual who is an adult.
       ``(14) 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.
       ``(15) 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.
       ``(16) Project-based.--The term `project-based', used with 
     respect to rental assistance, means assistance provided 
     pursuant to a contract that--
       ``(A) is between--
       ``(i) a project sponsor; and
       ``(ii) an owner of 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.
       ``(17) Project sponsor.--The term `project sponsor', used 
     with respect to proposed eligible activities, means the 
     organization directly responsible for the proposed eligible 
     activities.
       ``(18) 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.
       ``(19) Secretary.--The term `Secretary' means the Secretary 
     of Housing and Urban Development.
       ``(20) Serious mental illness.--The term `serious mental 
     illness' means a severe and persistent mental illness or 
     emotional impairment that seriously limits a person's ability 
     to live independently.
       ``(21) 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, the Commonwealth of the 
     Northern Mariana Islands, the Trust Territory of the Pacific 
     Islands, and any other territory or possession of the United 
     States.
       ``(22) Supportive services.--The term `supportive services' 
     means the supportive services described in section 425(c).
       ``(23) 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).
       ``(24) Transitional housing.--The term `transitional 
     housing' means housing, the purpose of which is to facilitate 
     the movement of individuals and families experiencing 
     homelessness to permanent housing within 24 months or such 
     longer period as the Secretary determines necessary.
       ``(25) Unified funding agency.--The term `unified funding 
     agency' means a collaborative applicant that performs the 
     duties described in section 402(f).

     ``SEC. 402. COLLABORATIVE APPLICANTS.

       ``(a) Establishment and Designation.--A collaborative 
     applicant shall be established for a geographic area by the 
     relevant parties in that geographic area to--
       ``(1) submit an application for amounts under this 
     subtitle; and
       ``(2) perform the duties specified in subsection (e) and, 
     if applicable, subsection (f).
       ``(b) No Requirement To Be a Legal Entity.--An entity may 
     be established to serve as a collaborative applicant under 
     this section without being a legal entity.
       ``(c) Remedial Action.--If the Secretary finds that a 
     collaborative applicant for a geographic area does not meet 
     the requirements of this section, or if there is no 
     collaborative applicant for a geographic area, 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 
     collaborative applicant, or permitting other eligible 
     entities to apply directly for grants.
       ``(d) 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.
       ``(e) Duties.--A collaborative applicant shall--

[[Page S6883]]

       ``(1) design a collaborative process for the development of 
     an application under subtitle C, and for evaluating the 
     outcomes of projects for which funds are awarded under 
     subtitle B, in such a manner as to provide information 
     necessary for the Secretary--
       ``(A) to determine compliance with--
       ``(i) the program requirements under section 425; and
       ``(ii) the selection criteria described under section 427; 
     and
       ``(B) to establish priorities for funding projects in the 
     geographic area involved;
       ``(2) participate in the Consolidated Plan for the 
     geographic area served by the collaborative applicant; and
       ``(3) ensure operation of, and consistent participation by, 
     project sponsors in a community-wide homeless management 
     information system for purposes of--
       ``(A) collecting unduplicated counts of individuals and 
     families experiencing homelessness;
       ``(B) analyzing patterns of use of assistance provided 
     under subtitles B and C for the geographic area involved; and
       ``(C) providing information to project sponsors and 
     applicants for needs analyses and funding priorities.
       ``(f) Unified Funding.--
       ``(1) In general.--In addition to the duties described in 
     subsection (e), a collaborative applicant shall receive from 
     the Secretary and distribute to other project sponsors in the 
     applicable geographic area funds for projects to be carried 
     out by such other project sponsors, if--
       ``(A) the collaborative applicant--
       ``(i) applies to undertake such collection and distribution 
     responsibilities in an application submitted under this 
     subtitle; and
       ``(ii) is selected to perform such responsibilities by the 
     Secretary; or
       ``(B) the Secretary designates the collaborative applicant 
     as the unified funding agency in the geographic area, after--
       ``(i) a finding by the Secretary that the applicant--

       ``(I) has the capacity to perform such responsibilities; 
     and
       ``(II) would serve the purposes of this Act as they apply 
     to the geographic area; and

       ``(ii) the Secretary provides the collaborative applicant 
     with the technical assistance necessary to perform such 
     responsibilities as such assistance is agreed to by the 
     collaborative applicant.
       ``(2) Required actions by a unified funding agency.--A 
     collaborative applicant that is either selected or designated 
     as a unified funding agency for a geographic area under 
     paragraph (1) shall--
       ``(A) require each project sponsor who is funded by a grant 
     received under subtitle C to establish such fiscal control 
     and fund accounting procedures as may be necessary to assure 
     the proper disbursal of, and accounting for, Federal funds 
     awarded to the project sponsor under subtitle C in order to 
     ensure that all financial transactions carried out under 
     subtitle C are conducted, and records maintained, in 
     accordance with generally accepted accounting principles; and
       ``(B) arrange for an annual survey, audit, or evaluation of 
     the financial records of each project carried out by a 
     project sponsor funded by a grant received under subtitle C.
       ``(g) Conflict of Interest.--No board member of a 
     collaborative applicant may participate in decisions of the 
     collaborative applicant concerning the award of a grant, or 
     provision of other financial benefits, to such member or the 
     organization that such member represents.'';
       (5) by inserting after section 403 (as redesignated in 
     paragraph (2)) the following:

     ``SEC. 404. TECHNICAL ASSISTANCE.

       ``(a) Technical Assistance for Project Sponsors.--The 
     Secretary shall make effective technical assistance available 
     to private nonprofit organizations and other nongovernmental 
     entities, States, metropolitan cities, urban counties, and 
     counties that are not urban counties that are potential 
     project sponsors, in order to implement effective planning 
     processes for preventing and ending homelessness, to optimize 
     self-sufficiency among individuals experiencing homelessness, 
     and to improve their capacity to become project sponsors.
       ``(b) Technical Assistance for Collaborative Applicants.--
     The Secretary shall make effective technical assistance 
     available to collaborative applicants--
       ``(1) to improve their ability to carry out the duties 
     required under subsections (e) and (f) of section 402;
       ``(2) to design and execute outcome-effective strategies 
     for preventing and ending homelessness in their geographic 
     areas consistent with the provisions of this title; and
       ``(3) to design and implement a community-wide process for 
     assessing the performance of the applicant and project 
     sponsors in meeting the purposes of this Act.
       ``(c) Reservation.--The Secretary may reserve not more than 
     1 percent of the funds made available for any fiscal year for 
     carrying out subtitles B and C, to make available technical 
     assistance under subsections (a) and (b).

     ``SEC. 405. APPEALS.

       ``(a) In General.--Not later than 3 months after the date 
     of enactment of the Community Partnership to End Homelessness 
     Act of 2007, the Secretary shall establish a timely appeal 
     procedure for grant amounts awarded or denied under this 
     subtitle pursuant to an application for funding.
       ``(b) Process.--The Secretary shall ensure that appeals 
     procedure established under subsection (a) permits appeals 
     submitted by--
       ``(1) collaborative applicants;
       ``(2) entities carrying out homeless housing and services 
     projects (including emergency shelters and homelessness 
     prevention programs); and
       ``(3) homeless planning bodies not established as 
     collaborative applicants.''; and
       (6) 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 this 
     title $1,800,000,000 for fiscal year 2008 and such sums as 
     may be necessary for fiscal years 2009, 2010, 2011, and 
     2012.''.

     SEC. 5. EMERGENCY HOMELESSNESS PREVENTION AND 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 the subtitle heading and inserting the 
     following:

  ``Subtitle B--Emergency Homelessness Prevention and Shelter Grants 
                               Program'';

       (2) 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 less than 10 nor 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 
     collaborative applicants 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 collaborative applicants.'';
       (3) 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'';
       (4) 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, education, family 
     support services for homeless youth, alcohol or drug abuse 
     prevention or treatment, or mental health treatment, if such 
     essential services have not been provided by the local 
     government during any part of the immediately preceding 12-
     month period, or the use of assistance under this subtitle 
     would complement the provision of those essential services.
       ``(3) Maintenance, operation, insurance, provision of 
     utilities, and provision of furnishings.
       ``(4) Housing relocation or stabilization services for 
     individuals and families at risk of homelessness, including 
     housing search, mediation or outreach to property owners, 
     legal services, credit repair, providing security or utility 
     deposits, short- or medium-term rental assistance, assistance 
     with moving costs, or other activities that are effective 
     at--
       ``(A) stabilizing individuals and families in their current 
     housing; or
       ``(B) quickly moving such individuals and families to other 
     housing before such individuals and families become 
     homeless.'';
       (5) by repealing section 417 (42 U.S.C. 11377); and
       (6) by redesignating section 418 as section 417.

     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:

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

       (2) by striking sections 421 through 424 (42 U.S.C. 11381 
     et seq.) and inserting the following:

     ``SEC. 421. PURPOSES.

       ``The purposes of this subtitle are--
       ``(1) to promote community-wide commitment to the goal of 
     ending homelessness;
       ``(2) to provide funding for efforts by nonprofit providers 
     and State and local governments to quickly rehouse homeless 
     individuals and families while minimizing the trauma and 
     dislocation caused to individuals, families, and communities 
     by homelessness;
       ``(3) to promote access to, and effective utilization of, 
     mainstream programs identified by the Government 
     Accountability Office in the 2 reports described in section 
     102(a)(5)(B) and programs funded with State or local 
     resources; and

[[Page S6884]]

       ``(4) to optimize self-sufficiency among individuals and 
     families experiencing homelessness.

     ``SEC. 422. COMMUNITY HOMELESS ASSISTANCE PROGRAM.

       ``(a) Projects.--The Secretary shall award grants, on a 
     competitive basis, and using the selection criteria described 
     in section 427, to carry out eligible activities under this 
     subtitle for projects that meet the program requirements 
     under section 426, either by directly awarding funds to 
     project sponsors or by awarding funds to unified funding 
     agencies.
       ``(b) 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.
       ``(c) Applications.--
       ``(1) Submission to the secretary.--To be eligible to 
     receive a grant under subsection (a), a project sponsor or 
     unified funding agency in a geographic area shall submit an 
     application to the Secretary at such time and in such manner 
     as the Secretary may require, and containing--
       ``(A) such information as the Secretary determines 
     necessary--
       ``(i) to determine compliance with the program requirements 
     and selection criteria under this subtitle; and
       ``(ii) to establish priorities for funding projects in the 
     geographic area.
       ``(2) Announcement of awards.--The Secretary shall 
     announce, within 4 months after the last date for the 
     submission of applications described in this subsection for a 
     fiscal year, the grants conditionally awarded under 
     subsection (a) for that fiscal year.
       ``(d) Obligation, Distribution, and Utilization of Funds.--
       ``(1) Requirements for obligation.--
       ``(A) In general.--Not later than 9 months after the 
     announcement referred to in subsection (c)(2), each recipient 
     of a grant announced under such subsection shall, with 
     respect to a project to be funded through such grant, meet, 
     or cause the project sponsor to meet, all requirements for 
     the obligation of funds for such project, including site 
     control, matching funds, and environmental review 
     requirements, except as provided in subparagraph (C).
       ``(B) Acquisition, rehabilitation, or construction.--Not 
     later than 15 months after the announcement referred to in 
     subsection (c)(2), each recipient of a grant announced under 
     such subsection seeking the obligation of funds for 
     acquisition of housing, rehabilitation of housing, or 
     construction of new housing for a grant announced under such 
     subsection shall meet all requirements for the obligation of 
     those funds, including site control, matching funds, and 
     environmental review requirements.
       ``(C) Extensions.--At the discretion of the Secretary, and 
     in compelling circumstances, the Secretary may extend the 
     date by which a recipient of a grant announced under 
     subsection (c)(2) shall meet or cause a project sponsor to 
     meet the requirements described in subparagraphs (A) and (B) 
     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.
       ``(2) Obligation.--Not later than 45 days after a recipient 
     meets or causes a project sponsor to meet the requirements 
     described in paragraph (1), the Secretary shall obligate the 
     funds for the grant involved.
       ``(3) Distribution.--A unified funding agency that receives 
     funds through a grant under this section--
       ``(A) shall distribute the funds to project sponsors (in 
     advance of expenditures by the project sponsors); and
       ``(B) shall distribute the appropriate portion of the funds 
     to a project sponsor not later than 45 days after receiving a 
     request for such distribution from the project sponsor.
       ``(4) Expenditure of funds.--The Secretary may establish a 
     date by which funds made available through a grant announced 
     under subsection (c)(2) for a homeless assistance project 
     shall be entirely expended by the recipient or project 
     sponsors involved. The Secretary shall recapture the funds 
     not expended by such date. The Secretary shall reallocate the 
     funds for another homeless assistance and prevention project 
     that meets the requirements of this subtitle to be carried 
     out, if possible and appropriate, in the same geographic area 
     as the area served through the original grant.
       ``(e) Renewal Funding for Unsuccessful Applicants.--The 
     Secretary may renew funding for a specific project previously 
     funded under this subtitle that the Secretary determines 
     meets the purposes of this subtitle, and was included as part 
     of a total application that met the criteria of subsection 
     (c), even if the application was not selected to receive 
     grant assistance. The Secretary may renew the funding for a 
     period of not more than 1 year, and under such conditions as 
     the Secretary determines to be appropriate.
       ``(f) Considerations in Determining Renewal Funding.--When 
     providing renewal funding for leasing or rental assistance 
     for permanent housing, the Secretary shall take into account 
     increases in the fair market rents for modest rental property 
     in the geographic area.
       ``(g) More Than 1 Application for a Geographic Area.--If 
     more than 1 collaborative applicant applies for funds for a 
     geographic area, the Secretary shall award funds to the 
     collaborative applicant with the highest score based on the 
     selection criteria set forth in section 427.

     ``SEC. 423. ELIGIBLE ACTIVITIES.

       ``(a) In General.--The Secretary may award grants to 
     project sponsors under section 422 to carry out homeless 
     assistance projects that consist of 1 or more of the 
     following eligible activities:
       ``(1) Construction of new housing units to provide 
     transitional or permanent housing to homeless individuals and 
     families.
       ``(2) Acquisition or rehabilitation of a structure to 
     provide supportive services or to provide transitional or 
     permanent housing, other than emergency shelter, to homeless 
     individuals and families.
       ``(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 to homeless 
     individuals and families, or providing supportive services to 
     homeless individuals and families.
       ``(4) Provision of rental assistance to provide 
     transitional or permanent housing to homeless individuals and 
     families. The rental assistance may include tenant-based or 
     project-based rental assistance.
       ``(5) Payment of operating costs for housing units assisted 
     under this subtitle.
       ``(6) Provision of supportive services to homeless 
     individuals and families, or individuals and families who in 
     the prior 6 months have been homeless but are currently 
     residing in permanent housing.
       ``(7) Provision of rehousing services, including housing 
     search, mediation or outreach to property owners, credit 
     repair, providing security or utility deposits, rental 
     assistance for a final month at a location, assistance with 
     moving costs, or other activities that--
       ``(A) are effective at moving homeless individuals and 
     families immediately into housing; or
       ``(B) may benefit individuals and families who in the prior 
     6 months have been homeless, but are currently residing in 
     permanent housing.
       ``(8) In the case of a collaborative applicant that is a 
     legal entity, performance of the duties described under 
     section 402(e)(3).
       ``(9) Operation of, participation in, and ensuring 
     consistent participation by project sponsors in, a community-
     wide homeless management information system.
       ``(10) In the case of a collaborative applicant that is a 
     legal entity, payment of administrative costs related to 
     meeting the requirements described in paragraphs (1) and (2) 
     of section 402(e), for which the collaborative applicant may 
     use not more than 3 percent of the total funds made available 
     in the geographic area under this subtitle for such costs, in 
     addition to funds used under paragraph (10).
       ``(11) In the case of a collaborative applicant that is a 
     unified funding agency under section 402(f), payment of 
     administrative costs related to meeting the requirements of 
     that section, for which the unified funding agency may use 
     not more than 3 percent of the total funds made available in 
     the geographic area under this subtitle for such costs, in 
     addition to funds used under paragraph (10).
       ``(12) Payment of administrative costs to project sponsors, 
     for which each project sponsor may use not more than 5 
     percent of the total funds made available to that project 
     sponsor through this subtitle for such costs.
       ``(b) Minimum Grant Terms.--The Secretary may impose 
     minimum grant terms of up to 5 years for new projects 
     providing permanent housing.
       ``(c) Use Restrictions.--
       ``(1) Acquisition, rehabilitation, and new construction.--A 
     project that consists of activities described in paragraph 
     (1) or (2) of subsection (a) shall be operated for the 
     purpose specified in the application submitted for the 
     project under section 422 for not less than 15 years.
       ``(2) Other activities.--A project that consists of 
     activities described in any of paragraphs (3) through (12) 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 collaborative 
     applicant or unified funding agency involved to carry out 
     instead a project for the direct benefit of low-income 
     persons, and the collaborative applicant or unified funding 
     agency determines that the initial project is no longer 
     needed to provide transitional or permanent housing, the 
     collaborative applicant or unified funding agency may 
     recommend that the Secretary approve the project described in 
     the request and authorize the recipient or project sponsor to 
     carry out that project. If the collaborative applicant or 
     unified funding agency is the recipient or project sponsor, 
     it shall submit such a request directly to the Secretary who 
     shall determine if the conversion of the project is 
     appropriate.

[[Page S6885]]

       ``(d) Repayment of Assistance and Prevention of Undue 
     Benefits.--
       ``(1) Repayment.--If a recipient (or a project sponsor 
     receiving funds from the recipient) 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 the 
     project sponsor receiving funds from the recipient) to repay 
     100 percent of the assistance; or
       ``(B) not earlier than 10 years, but earlier than 15 years, 
     after operation of the project begins, the Secretary shall 
     require the recipient (or the project sponsor receiving funds 
     from the recipient) to repay 20 percent of the assistance for 
     each of the years in the 15-year period for which the project 
     fails to provide that housing.
       ``(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 15-year period beginning on the 
     date that operation of the project begins, the recipient (or 
     the project sponsor receiving funds from the recipient) who 
     received the assistance shall comply with such terms and 
     conditions as the Secretary may prescribe to prevent the 
     recipient (or a project sponsor receiving funds from the 
     recipient) from unduly benefitting from such sale or 
     disposition.
       ``(3) Exception.--A recipient (or a project sponsor 
     receiving funds from the recipient) 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;
       ``(B) all of the proceeds of the sale or disposition are 
     used to provide transitional or permanent housing meeting the 
     requirements of this subtitle; or
       ``(C) there are no individuals and families in the 
     geographic area who are homeless, in which case the project 
     may serve individuals and families at risk of homelessness 
     under section 1004.

     ``SEC. 424. FLEXIBILITY INCENTIVES FOR HIGH-PERFORMING 
                   COMMUNITIES.

       ``(a) Designation as a High-Performing Community.--
       ``(1) In general.--The Secretary shall designate, on an 
     annual basis, which collaborative applicants represent high-
     performing communities.
       ``(2) Consideration.--In determining whether to designate a 
     collaborative applicant as a high-performing community under 
     paragraph (1), the Secretary shall establish criteria to 
     ensure that the requirements described under paragraphs 
     (1)(B) and (2)(B) of subsection (d) are measured by comparing 
     homeless individuals and families under similar 
     circumstances, in order to encourage projects in the 
     geographic area to serve homeless individuals and families 
     with more severe barriers to housing stability.
       ``(3) 2-year phase in.--In each of the first 2 years after 
     the date of enactment of this section, the Secretary shall 
     designate not more than 10 collaborative applicants as high-
     performing communities.
       ``(4) Excess of qualified applicants.--In the event that 
     during the 2-year period described under paragraph (2) more 
     than 10 collaborative applicants could qualify to be 
     designated as high-performing communities, the Secretary 
     shall designate the 10 that have, in the discretion of the 
     Secretary, the best performance based on the criteria 
     described under subsection (d).
       ``(5) Time limit on designation.--The designation of any 
     collaborative applicant as a high-performing community under 
     this subsection shall be effective only for the year in which 
     such designation is made. The Secretary, on an annual basis, 
     may renew any such designation.
       ``(b) Application to Be a High-Performing Community.--
       ``(1) In general.--A collaborative applicant seeking 
     designation as a high-performing community under subsection 
     (a) shall submit an application to the Secretary at such 
     time, and in such manner as the Secretary may require.
       ``(2) Content of application.--In any application submitted 
     under paragraph (1), a collaborative applicant shall include 
     in such application--
       ``(A) a report showing how any money received under this 
     subtitle in the preceding year was expended; and
       ``(B) information that such applicant can meet the 
     requirements described under subsection (d).
       ``(3) Publication of application.--The Secretary shall--
       ``(A) publish any report or information submitted in an 
     application under this section in the geographic area 
     represented by the collaborative applicant; and
       ``(B) seek comments from the public as to whether the 
     collaborative applicant seeking designation as a high-
     performing community meets the requirements described under 
     subsection (d).
       ``(c) Use of Funds.--
       ``(1) By project sponsors in a high-performing community.--
     Funds awarded under section 422(a) to a project sponsor who 
     is located in a high-performing community may be used--
       ``(A) for any of the eligible activities described in 
     section 423; or
       ``(B) for any of the eligible activities described in 
     section 1003.
       ``(2) Community homelessness prevention funds.--
       ``(A) In general.--Funds used for activities that are 
     eligible under section 1003 but not under section 423 shall 
     be subject to--
       ``(i) the matching requirements of section 1008 rather than 
     section 430; and
       ``(ii) the other program requirements of title X rather 
     than of this subtitle.
       ``(B) Duty of secretary.--The Secretary shall transfer any 
     funds awarded under section 422(a) for activities that are 
     eligible under section 1003 but not under section 423 from 
     the account for this subtitle to the account for title X.
       ``(d) Definition of High-Performing Community.--For 
     purposes of this section, the term `high-performing 
     community' means a geographic area that demonstrates through 
     reliable data that all of the following 4 requirements are 
     met for that geographic area:
       ``(1) The mean length of episodes of homelessness for that 
     geographic area--
       ``(A) is less than 20 days; or
       ``(B) for individuals and families in similar circumstances 
     in the preceding year was at least 10 percent less than in 
     the year before.
       ``(2) Of individuals and families--
       ``(A) who leave homelessness, less than 5 percent of such 
     individuals and families become homeless again at any time 
     within the next 2 years; or
       ``(B) in similar circumstances who leave homelessness, the 
     percentage of such individuals and families who become 
     homeless again within the next 2 years has decreased by at 
     least \1/5\ within the preceding year.
       ``(3) The communities that compose the geographic area 
     have--
       ``(A) actively encouraged homeless individuals and families 
     to participate in homeless assistance services available in 
     that geographic area; and
       ``(B) included each homeless individual or family who 
     sought homeless assistance services in the data system used 
     by that community for determining compliance with this 
     subsection.
       ``(4) If recipients in the geographic area have used 
     funding awarded under section 422(a) for eligible activities 
     described under section 1003 in previous years based on the 
     authority granted under subsection (c), that such activities 
     were effective at reducing the number of individuals and 
     families who became homeless in that community.
       ``(e) Cooperation Among Entities.--A collaborative 
     applicant designated as a high-performing community under 
     this section shall cooperate with the Secretary in 
     distributing information about successful efforts within the 
     geographic area represented by the collaborative applicant to 
     reduce homelessness.'' ;
       (3) in section 426 (42 U.S.C. 11386)--
       (A) by striking subsection (a) and inserting the following:
       ``(a) Site Control.--The Secretary shall require that each 
     application include reasonable assurances that the applicant 
     will own or have control of a site for the proposed project 
     not later than the expiration of the 12-month period 
     beginning upon notification of an award for grant assistance, 
     unless the application proposes providing supportive housing 
     assistance under section 423(a)(3) or housing that will 
     eventually be owned or controlled by the families and 
     individuals served. An applicant may obtain ownership or 
     control of a suitable site different from the site specified 
     in the application. If any recipient (or project sponsor 
     receiving funds from the recipient) fails to obtain ownership 
     or control of the site within 12 months after notification of 
     an award for grant assistance, the grant shall be recaptured 
     and reallocated under this subtitle.'';
       (B) by striking subsection (b) and inserting the following:
       ``(b) Required Agreements.--The Secretary may not provide 
     assistance for a proposed project under this subtitle unless 
     the collaborative applicant involved agrees--
       ``(1) to ensure the operation of the project in accordance 
     with the provisions of this subtitle;
       ``(2) to monitor and report to the Secretary the progress 
     of the project;
       ``(3) to ensure, to the maximum extent practicable, that 
     individuals and families experiencing homelessness are 
     involved, through employment, provision of volunteer 
     services, or otherwise, in constructing, rehabilitating, 
     maintaining, and operating facilities for the project and in 
     providing supportive services for the project;
       ``(4) to require certification from all project sponsors 
     that--
       ``(A) they will maintain the confidentiality of records 
     pertaining to any individual or family provided family 
     violence prevention or treatment services through the 
     project;
       ``(B) that the address or location of any family violence 
     shelter project assisted under this subtitle will not be made 
     public, except with written authorization of the person 
     responsible for the operation of such project;
       ``(C) they will establish policies and practices that are 
     consistent with, and do not restrict the exercise of rights 
     provided by, subtitle B of title VII, and other laws relating 
     to the provision of educational and related services to 
     individuals and families experiencing homelessness;

[[Page S6886]]

       ``(D) they will provide data and reports as required by the 
     Secretary pursuant to the Act; and
       ``(E) if the project includes the provision of permanent 
     housing to people with disabilities, the housing will be 
     provided for not more than--
       ``(i) 8 such persons in a single structure or contiguous 
     structures;
       ``(ii) 16 such persons, but only if not more than 20 
     percent of the units in a structure are designated for such 
     persons; or
       ``(iii) more than 16 such persons if the applicant 
     demonstrates that local market conditions dictate the 
     development of a large project and such development will 
     achieve the neighborhood integration objectives of the 
     program within the context of the affected community;
       ``(5) if a collaborative applicant is a unified funding 
     agency under section 402(f) and receives funds under subtitle 
     C to carry out the payment of administrative costs described 
     in section 423(a)(7), to establish such fiscal control and 
     fund accounting procedures as may be necessary to assure the 
     proper disbursal of, and accounting for, such funds in order 
     to ensure that all financial transactions carried out with 
     such funds are conducted, and records maintained, in 
     accordance with generally accepted accounting principles;
       ``(6) to monitor and report to the Secretary the provision 
     of matching funds as required by section 430; and
       ``(7) to comply with such other terms and conditions as the 
     Secretary may establish to carry out this subtitle in an 
     effective and efficient manner.'';
       (C) by redesignating subsection (d) as subsection (c);
       (D) in subsection (c) (as redesignated in subparagraph 
     (C)), in the first sentence, by striking ``recipient'' and 
     inserting ``recipient or project sponsor'';
       (E) by striking subsection (e);
       (F) by redesignating subsections (f), (g), and (h), as 
     subsections (d), (e), and (f), respectively;
       (G) in subsection (e) (as redesignated in subparagraph 
     (F)), in the first sentence, by striking ``recipient'' each 
     place it appears and inserting ``recipient or project 
     sponsor'';
       (H) by striking subsection (i); and
       (I) by redesignating subsection (j) as subsection (g);
       (4) by repealing section 429 (42 U.S.C. 11389);
       (5) by redesignating sections 427 and 428 (42 U.S.C. 11387, 
     11388) as sections 431 and 432, respectively; and
       (6) by inserting after section 426 the following:

     ``SEC. 427. SELECTION CRITERIA.

       ``(a) In General.--The Secretary shall award funds to 
     recipients by a national competition between geographic areas 
     based on criteria established by the Secretary.
       ``(b) Required Criteria.--
       ``(1) In general.--The criteria established under 
     subsection (a) shall include--
       ``(A) the previous performance of the recipient regarding 
     homelessness, measured by criteria that shall be announced by 
     the Secretary, that shall take into account barriers faced by 
     individual homeless people, and that shall include--
       ``(i) the length of time individuals and families remain 
     homeless;
       ``(ii) the extent to which individuals and families who 
     leave homelessness experience additional spells of 
     homelessness;
       ``(iii) the thoroughness of grantees in the geographic area 
     in reaching all homeless individuals and families;
       ``(iv) overall reduction in the number of homeless 
     individuals and families;
       ``(v) jobs and income growth for homeless individuals and 
     families;
       ``(vi) success at reducing the number of individuals and 
     families who become homeless; and
       ``(vii) other accomplishments by the recipient related to 
     reducing homelessness;
       ``(B) the plan of the recipient, which shall describe--
       ``(i) how the number of individuals and families who become 
     homeless will be reduced in the community;
       ``(ii) how the length of time that individuals and families 
     remain homeless will be reduced; and
       ``(iii) the extent to which the recipient will--

       ``(I) address the needs of all relevant subpopulations, 
     including--

       ``(aa) individuals with serious mental illness, addiction 
     disorders, HIV/AIDS and other prevalent disabilities;
       ``(bb) families with children;
       ``(cc) unaccompanied youth;
       ``(dd) veterans; and
       ``(ee) other subpopulations with a risk of becoming 
     homeless;

       ``(II) incorporate all necessary strategies for reducing 
     homelessness, including the interventions referred to in 
     section 428(d);
       ``(III) set quantifiable performance measures;
       ``(IV) set timelines for completion of specific tasks;
       ``(V) identify specific funding sources for planned 
     activities;
       ``(VI) identify an individual or body responsible for 
     overseeing implementation of specific strategies;
       ``(VII) include a review of local policies and practices 
     relating to discharge planning from institutions, access to 
     benefits and services from mainstream government programs, 
     and zoning and land use, to determine whether such local 
     policies and practices aggravate or ameliorate homelessness 
     in the geographic area;
       ``(VIII) include interventions that will help reunify 
     families that have been split up as a result of homelessness; 
     and
       ``(IX) incorporate the findings and recommendations of the 
     most recently completed annual assessments, conducted 
     pursuant to section 2034 of title 38, United States Code, of 
     the Department of Veterans Affairs medical centers or 
     regional benefits offices whose service areas include the 
     geographic area of the recipient;

       ``(C) the methodology of the recipient used to determine 
     the priority for funding local projects under section 
     422(c)(1), including the extent to which the priority-setting 
     process--
       ``(i) uses periodically collected information and analysis 
     to determine the extent to which each project has resulted in 
     rapid return to permanent housing for those served by the 
     project, taking into account the severity of barriers faced 
     by the people the project serves;
       ``(ii) includes evaluations obtained directly from the 
     individuals and families served by the project;
       ``(iii) evaluates whether the population served by the 
     project matches the priority population for that project;
       ``(iv) is based on objective criteria that have been 
     publicly announced by the recipient;
       ``(v) is open to proposals from entities that have not 
     previously received funds under this subtitle; and
       ``(vi) avoids conflicts of interest in the decision-making 
     of the recipient;
       ``(D) the extent to which the recipient has a comprehensive 
     understanding of the extent and nature of homelessness in the 
     geographic area and efforts needed to combat the problem of 
     homelessness in the geographic area;
       ``(E) the need for the types of projects proposed in the 
     geographic area to be served and the extent to which the 
     prioritized programs of the recipient meet such unmet needs;
       ``(F) the extent to which the amount of assistance to be 
     provided under this subtitle to the recipient will be 
     supplemented with resources from other public and private 
     sources, including mainstream programs identified by the 
     Government Accountability Office in the 2 reports described 
     in section 102(a)(5)(B);
       ``(G) demonstrated coordination by the recipient with the 
     other Federal, State, local, private, and other entities 
     serving individuals and families experiencing homelessness 
     and at risk of homelessness in the planning and operation of 
     projects, to the extent practicable;
       ``(H) the degree to which homeless individuals and families 
     in the geographic area, including members of all relevant 
     subpopulations listed in subparagraph (B)(III)(I), are able 
     to access--
       ``(i) public benefits and services for which they are 
     eligible, besides the services funded under this subtitle, 
     including public schools; and
       ``(ii) the benefits and services provided by the Department 
     of Veterans Affairs;
       ``(I) the extent to which the opinions and views of the 
     full range of people in the geographic area are considered, 
     including--
       ``(i) homeless individuals and families, individuals and 
     families at risk of homelessness, and individuals and 
     families who have experienced homelessness;
       ``(ii) individuals associated with community-based 
     organizations that serve homeless individuals and families 
     and individuals and families at risk of homelessness;
       ``(iii) persons who act as advocates for the diverse 
     subpopulations of individuals and families experiencing or at 
     risk of homelessness;
       ``(iv) relatives of individuals and families experiencing 
     or at risk of homelessness;
       ``(v) Federal, State, and local government agency 
     officials, particularly those officials responsible for 
     administering funding under programs targeted for individuals 
     and families experiencing homelessness, and other programs 
     for which individuals and families experiencing homelessness 
     are eligible, including mainstream programs identified by the 
     Government Accountability Office in the 2 reports described 
     in section 102(a)(5)(B);
       ``(vi) local educational agency liaisons designated under 
     section 722(g)(1)(J)(ii), or their designees;
       ``(vii) members of the business community;
       ``(viii) members of neighborhood advocacy organizations; 
     and
       ``(ix) members of philanthropic organizations that 
     contribute to preventing and ending homelessness in the 
     geographic area of the collaborative applicant; and
       ``(J) such other factors as the Secretary determines to be 
     appropriate to carry out this subtitle in an effective and 
     efficient manner.
       ``(2) Additional criteria.--In addition to the criteria 
     required under paragraph (1), the criteria established under 
     subsection (a) shall also include the need within the 
     geographic area for homeless services, determined as follows 
     and under the following conditions:
       ``(A) Notice.--The Secretary shall inform each 
     collaborative applicant, at a time concurrent with the 
     release of the Notice of Funding Availability for grants 
     under section 422(b), of the pro rata estimated need amount 
     under this subtitle for the geographic area represented by 
     the collaborative applicant.
       ``(B) Amount.--

[[Page S6887]]

       ``(i) Basis.--The estimated need amount under subparagraph 
     (A) 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 
     collaborative applicant; 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).

       ``(ii) Rule.--In computing the estimated need amount under 
     subparagraph (A), the Secretary shall adjust the estimated 
     need amount determined pursuant to clause (i) 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--

       ``(aa) 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
       ``(bb) to counties that are not urban counties.
       ``(iii) Combinations or consortia.--For a collaborative 
     applicant that represents a combination or consortium of 
     cities or counties, the estimated need amount shall be the 
     sum of the estimated need amounts for the cities or counties 
     represented by the collaborative applicant.
       ``(iv) Authority of secretary.--The Secretary may increase 
     the estimated need amount for a geographic area if necessary 
     to provide 1 year of renewal funding for all expiring 
     contracts entered into under this subtitle for the geographic 
     area.

     ``SEC. 428. ALLOCATION AMOUNTS AND INCENTIVES FOR SPECIFIC 
                   ELIGIBLE ACTIVITIES.

       ``(a) Minimum Allocation for Permanent Housing for Homeless 
     Individuals and Families With Disabilities.--
       ``(1) In general.--From the amounts 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 permanent housing for homeless individuals with 
     disabilities and homeless families that include such an 
     individual who is an adult.
       ``(2) Calculation.--In calculating the portion of the 
     amount described in paragraph (1) that is used for activities 
     that are described in paragraph (1), the Secretary shall not 
     count funds made available to renew contracts for existing 
     projects under section 429.
       ``(3) Adjustment.--The 30 percent figure in paragraph (1) 
     shall be reduced proportionately based on need under section 
     427(b)(2) in geographic areas for which subsection (e) 
     applies in regard to subsection (d)(2)(A).
       ``(4) Suspension.--The requirement established in paragraph 
     (1) shall be suspended for any year in which available 
     funding for grants under this subtitle would not be 
     sufficient to renew for 1 year existing grants that would 
     otherwise be funded under this subtitle.
       ``(5) Termination.--The requirement established in 
     paragraph (1) shall terminate upon a finding by the Secretary 
     that since the beginning of 2001 at least 150,000 new units 
     of permanent housing for homeless individuals and families 
     with disabilities have been funded under this subtitle.
       ``(b) Minimum Allocation for Permanent Housing for Homeless 
     Families With Children.--From the amounts made available to 
     carry out this subtitle for a fiscal year, a portion equal to 
     not less than 10 percent of the sums made available to carry 
     out subtitle B and this subtitle for that fiscal year shall 
     be used to provide or secure permanent housing for homeless 
     families with children.
       ``(c) Funding for Acquisition, Construction, and 
     Rehabilitation of Permanent or Transitional Housing.--Nothing 
     in this subtitle 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.
       ``(d) Incentives for Proven Strategies.--
       ``(1) In general.--The Secretary shall provide bonuses or 
     other incentives to geographic areas for using funding under 
     this subtitle for activities that have been proven to be 
     effective at reducing homelessness generally or reducing 
     homelessness for a specific subpopulation.
       ``(2) Rule of construction.--For purposes of this 
     subsection, activities that have been proven to be effective 
     at reducing homelessness generally or reducing homelessness 
     for a specific subpopulation includes--
       ``(A) permanent supportive housing for chronically homeless 
     individuals and families;
       ``(B) for homeless families, rapid rehousing services, 
     short-term flexible subsidies to overcome barriers to 
     rehousing, support services concentrating on improving 
     incomes to pay rent, coupled with performance measures 
     emphasizing rapid and permanent rehousing and with leveraging 
     funding from mainstream family service systems such as 
     Temporary Assistance for Needy Families and Child Welfare 
     services; and
       ``(C) any other activity determined by the Secretary, based 
     on research and after notice and comment to the public, to 
     have been proven effective at reducing homelessness generally 
     or reducing homelessness for a specific subpopulation.
       ``(e) Incentives for Successful Implementation of Proven 
     Strategies.--
       ``(1) In general.--If any geographic area demonstrates that 
     it has fully implemented any of the activities described in 
     subsection (d) for all homeless individuals and families or 
     for all members of subpopulations for whom such activities 
     are targeted, that geographic area shall receive the bonus or 
     incentive provided under subsection (d), but may use such 
     bonus or incentive for any eligible activity under either 
     section 423 or section 1003 for homeless people generally or 
     for the relevant subpopulation.
       ``(2) Use of funds.--Bonus or incentive funds awarded under 
     this subsection that are used for activities that are 
     eligible under section 1003 but not under section 423 shall 
     be subject to--
       ``(A) the matching requirements of section 1008 rather than 
     section 430; and
       ``(B) the other program requirements of title X rather than 
     of this subtitle.
       ``(3) Duty of secretary.--The Secretary shall transfer any 
     bonus or incentive funds awarded under this subsection for 
     activities that are eligible under section 1003 but not under 
     section 423 from the account for this subtitle to the account 
     for title X.

     ``SEC. 429. RENEWAL FUNDING AND TERMS OF ASSISTANCE FOR 
                   PERMANENT HOUSING.

       ``(a) In General.--Of the total amount available in the 
     account or accounts designated for appropriations for use in 
     connection with section 8 of the United States Housing Act of 
     1937 (42 U.S.C. 1437f), the Secretary shall use such sums as 
     may be necessary for the purpose of renewing expiring 
     contracts for leasing, rental assistance, or operating costs 
     for permanent housing.
       ``(b) Renewals.--The sums made available under subsection 
     (a) 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 2007). The Secretary shall determine 
     whether to renew a contract for such a permanent housing 
     project on the basis of certification by the collaborative 
     applicant for the geographic area that--
       ``(1) there is a demonstrated need for the project; and
       ``(2) the project complies with program requirements and 
     appropriate standards of housing quality and habitability, as 
     determined by the Secretary.
       ``(c) Construction.--Nothing in this section shall be 
     construed as prohibiting the Secretary from renewing 
     contracts under this subtitle in accordance with criteria set 
     forth in a provision of this subtitle other than this 
     section.

     ``SEC. 430. MATCHING FUNDING.

       ``(a) In General.--A collaborative applicant in a 
     geographic area in which funds are awarded under this 
     subtitle shall specify contributions that shall be made 
     available in the geographic area in an amount equal to not 
     less than 25 percent of the funds provided to recipients in 
     the geographic area.
       ``(b) Limitations on In-Kind Match.--The cash value of 
     services provided to the residents or clients of a project 
     sponsor by an entity other than the project sponsor may count 
     toward the contributions in subsection (a) only when 
     documented by a memorandum of understanding between the 
     project sponsor and the other entity that such services will 
     be provided.
       ``(c) Countable Activities.--- The contributions required 
     under subsection (a) may consist of--
       ``(1) funding for any eligible activity described under 
     section 423; and
       ``(2) subject to subsection (b), in-kind provision of 
     services of any eligible activity described under section 
     423.''.

     SEC. 7. RURAL HOUSING STABILITY ASSISTANCE.

       Subtitle D of title IV of the McKinney-Vento Homeless 
     Assistance Act (42 U.S.C. 11408 et seq.), as redesignated by 
     section 9, is amended--
       (1) by striking the subtitle heading and inserting the 
     following:

    ``Subtitle D--Rural Housing Stability Assistance Program''; and

       (2) in section 491--
       (A) by striking the section heading and inserting ``rural 
     housing stability grant program.'';
       (B) in subsection (a)--
       (i) by striking ``rural homelessness grant program'' and 
     inserting ``rural housing stability grant program'';
       (ii) by inserting ``in lieu of grants under subtitle C and 
     title X'' after ``eligible organizations''; and
       (iii) by striking paragraphs (1), (2), and (3), and 
     inserting the following:

[[Page S6888]]

       ``(1) rehousing or improving the housing situations of 
     individuals and families who are homeless or in the worst 
     housing situations in the geographic area;
       ``(2) stabilizing the housing of individuals and families 
     who are in imminent danger of losing housing; and
       ``(3) improving the ability of the lowest-income residents 
     of the community to afford stable housing.'';
       (C) in subsection (b)(1)--
       (i) by redesignating subparagraphs (E), (F), and (G) as 
     subparagraphs (I), (J), and (K), respectively; and
       (ii) by striking subparagraph (D) and inserting the 
     following:
       ``(D) construction of new housing units to provide 
     transitional or permanent housing to homeless individuals and 
     families;
       ``(E) acquisition or rehabilitation of a structure to 
     provide supportive services or to provide transitional or 
     permanent housing, other than emergency shelter, to homeless 
     individuals and families;
       ``(F) leasing of property, or portions of property, not 
     owned by the recipient or project sponsor involved, for use 
     in providing transitional or permanent housing to homeless 
     individuals and families, or providing supportive services to 
     homeless individuals and families;
       ``(G) provision of rental assistance to provide 
     transitional or permanent housing to homeless individuals and 
     families, such rental assistance may include tenant-based or 
     project-based rental assistance;
       ``(H) payment of operating costs for housing units assisted 
     under this title;'';
       (D) in subsection (b)(2), by striking ``appropriated'' and 
     inserting ``transferred'';
       (E) in subsection (c)--
       (i) in paragraph (1)(A), by striking ``appropriated'' and 
     inserting ``transferred''; and
       (ii) in paragraph (3), by striking ``appropriated'' and 
     inserting ``transferred'';
       (F) in subsection (d)--
       (i) in paragraph (5), by striking ``; and'' and inserting a 
     semicolon;
       (ii) in paragraph (6)--

       (I) by striking ``an agreement'' and all that follows 
     through ``families'' and inserting the following: ``a 
     description of how individuals and families who are homeless 
     or who have the lowest incomes in the community will be 
     involved by the organization''; and
       (II) by striking the period at the end, and inserting a 
     semicolon; and

       (iii) by adding at the end the following:
       ``(7) a description of consultations that took place within 
     the community to ascertain the most important uses for 
     funding under this section, including the involvement of 
     potential beneficiaries of the project; and
       ``(8) a description of the extent and nature of 
     homelessness and of the worst housing situations in the 
     community.'';
       (G) by striking subsections (f) and (g) and inserting the 
     following:
       ``(f) Matching Funding.--
       ``(1) In general.--An organization eligible to receive a 
     grant under subsection (a) shall specify matching 
     contributions that shall be made available in an amount equal 
     to not less than 25 percent of the funds provided for the 
     project or activity.
       ``(2) Limitations on in-kind match.--The cash value of 
     services provided to the beneficiaries or clients of an 
     eligible organization by an entity other than the 
     organization may count toward the contributions in paragraph 
     (1) only when documented by a memorandum of understanding 
     between the organization and the other entity that such 
     services will be provided.
       ``(3) Countable activities.--The contributions required 
     under paragraph (1) may consist of--
       ``(A) funding for any eligible activity described under 
     subsection (b); and
       ``(B) subject to paragraph (2), in-kind provision of 
     services of any eligible activity described under subsection 
     (b).
       ``(g) Selection Criteria.--The Secretary shall establish 
     criteria for selecting recipients of grants under subsection 
     (a), including--
       ``(1) the participation of potential beneficiaries of the 
     project in assessing the need for, and importance of, the 
     project in the community;
       ``(2) the degree to which the project addresses the most 
     harmful housing situations present in the community;
       ``(3) the degree of collaboration with others in the 
     community to meet the goals described in subsection (a);
       ``(4) the performance of the organization in improving 
     housing situations, taking account of the severity of 
     barriers of individuals and families served by the 
     organization;
       ``(5) for organizations that have previously received 
     funding under this section, the extent of improvement in 
     homelessness and the worst housing situations in the 
     community since such funding began;
       ``(6) the need for such funds, as determined by the formula 
     established under section 427(b)(2); and
       ``(7) any other relevant criteria as determined by the 
     Secretary.'';
       (H) in subsection (h)--
       (i) in paragraph (1)(A), by striking ``providing housing 
     and other assistance to homeless persons'' and inserting 
     ``meeting the goals described in subsection (a)'';
       (ii) in paragraph (1)(B), by inserting ``in the worst 
     housing situations'' after ``homelessness''; and
       (iii) in paragraph (2), by inserting ``in the worst housing 
     situations'' after ``homelessness'';
       (I) in subsection (k)(1), by striking ``rural homelessness 
     grant program'' and inserting ``rural housing stability grant 
     program'';
       (J) in subsection (l)--
       (i) by striking the subsection heading and inserting 
     ``Program Funding.--''; and
       (ii) by striking paragraph (1) and inserting the following:
       ``(1) In general.--The Secretary shall determine the total 
     amount of funding attributable under both section 427(b)(2) 
     and section 1003(h) to meet the needs of any geographic area 
     in the Nation that applies for funding under this section. 
     The Secretary shall transfer any amounts determined under 
     this subsection from the Community Homeless Assistance 
     Program and the grant program under section 1002 and 
     consolidate such transferred amounts for grants under this 
     section.''; and
       (K) by adding at the end the following:
       ``(m) Division of Funds.--
       ``(1) Agreement among geographic areas.--If the Secretary 
     receives an application or applications to provide services 
     in a geographic area under this subtitle, and also under 
     subtitle C and title X, the Secretary shall consult with all 
     applicants from the geographic area to determine whether all 
     agree to proceed under either this subtitle or under subtitle 
     C and title X.
       ``(2) Default if no agreement.--If no agreement is reached 
     under paragraph (1), the Secretary shall proceed under this 
     subtitle, or under subtitle C and title X, depending on which 
     results in the largest total grant funding to the geographic 
     area.''.

     SEC. 8. FUNDS TO PREVENT HOMELESSNESS AND STABILIZE HOUSING 
                   FOR PRECARIOUSLY HOUSED INDIVIDUALS AND 
                   FAMILIES.

       The McKinney-Vento Homeless Assistance Act (42 U.S.C. 11301 
     et seq.) is amended by inserting after title IX the 
     following:

    ``TITLE X--PREVENTING HOMELESSNESS AND STABILIZING HOUSING FOR 
              PRECARIOUSLY HOUSED INDIVIDUALS AND FAMILIES

     ``SEC. 1001. PURPOSES.

       ``The purposes of this title are--
       ``(1) to assist local communities to stabilize the housing 
     of individuals and families who are most at risk of 
     homelessness; and
       ``(2) to improve the ability of publicly funded 
     institutions to avoid homelessness among individuals and 
     families leaving the institutions.

     ``SEC. 1002. COMMUNITY HOMELESSNESS PREVENTION AND HOUSING 
                   STABILITY.

       ``(a) Projects.--The Secretary shall award grants to 
     recipients, on a competitive basis using the selection 
     criteria described in section 1006, to carry out eligible 
     activities under this title, for projects that meet the 
     program requirements established under section 1005.
       ``(b) Notification of Funding Availability.--The Secretary 
     shall release a Notification of Funding Availability for 
     grants awarded under this title 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.
       ``(c) Collaborative Applicant.--
       ``(1) In general.--A collaborative applicant, as such term 
     is defined in section 401, shall for purposes of this title 
     have the same responsibilities as set forth under section 
     402.
       ``(2) Dual role encouraged.--The Secretary shall encourage 
     the same entity which serves as a collaborative applicant for 
     purposes of subtitle C of title IV to serve as a 
     collaborative applicant for purposes of this title.
       ``(d) Applications.--
       ``(1) Submission to the secretary.--A collaborative 
     applicant shall submit an application to the Secretary at 
     such time and in such manner as the Secretary may require, 
     and containing such information as the Secretary determines 
     necessary to determine if the applicant is in compliance 
     with--
       ``(A) program requirements established under section 1005;
       ``(B) the selection criteria described in section 1006; and
       ``(C) the priorities for funding projects in the geographic 
     area under this title.
       ``(2) Coordination with community homeless assistance 
     program.--The Secretary shall, to the maximum extent 
     feasible, coordinate the application process under this 
     section with the application processes for programs under 
     subtitles B and C of title IV.
       ``(3) Announcement of awards.--The Secretary shall 
     announce, within 4 months after the last date for the 
     submission of applications described in this subsection for a 
     fiscal year, the grants conditionally awarded under 
     subsection (a) for that fiscal year.
       ``(e) Renewal Funding for Unsuccessful Applicants.--The 
     Secretary may renew funding for a specific project previously 
     funded under this title that the Secretary determines is 
     effective at preventing homelessness, and was included as 
     part of a total application that met the criteria of 
     subsection (d)(1), even if the application was not selected 
     to receive grant assistance. The Secretary may renew the 
     funding for a period of not more than 1 year, and under such 
     conditions as the Secretary determines to be appropriate.
       ``(f) More Than 1 Application for a Geographic Area.--If 
     more than 1 collaborative applicant applies for funds for a 
     geographic area, the Secretary shall award funds to the 
     collaborative applicant with the highest score based on the 
     selection criteria set forth in section 1006.

[[Page S6889]]

     ``SEC. 1003. ELIGIBLE ACTIVITIES.

       ``The Secretary may award grants to qualified recipients 
     under section 1002 to carry out homeless prevention projects 
     that consist of 1 or more of the following eligible 
     activities:
       ``(1) Leasing of property, or portions of property, not 
     owned by the recipient involved, for use in providing short-
     term or medium-term housing to people at risk of 
     homelessness, or providing supportive services to people at 
     risk of homelessness.
       ``(2) Provision of rental assistance to provide short-term 
     or medium-term housing to people at risk of homelessness. The 
     rental assistance may include tenant-based or project-based 
     rental assistance.
       ``(3) Payment of operating costs for housing units assisted 
     under this title.
       ``(4) Supportive services for people at risk of 
     homelessness.
       ``(5) Housing relocation or stabilization services, 
     including housing search, mediation or outreach to property 
     owners, legal services, credit repair, providing security or 
     utility deposits, rental assistance for a final month at a 
     location, assistance with moving costs, or other activities 
     that are effective at stabilizing individuals and families in 
     their current housing or quickly moving them to other 
     housing.
       ``(6) In the case of a collaborative applicant that is a 
     legal entity payment of administrative costs related to 
     meeting the requirements of section 1002(c), for which the 
     collaborative applicant may use not more than 3 percent of 
     the total funds made available in the geographic area under 
     this subtitle.
       ``(7) In the case of a collaborative applicant that is a 
     unified funding agency, as such term is defined under section 
     402, payment of administrative costs related to meeting the 
     requirements of serving as such an agency, for which the 
     collaborative applicant may use not more than 3 percent of 
     the total funds made available in the geographic area under 
     this title.

     ``SEC. 1004. ELIGIBLE CLIENTS FOR FUNDED PROJECTS.

       ``(a) Rule of Construction.--For purposes of this title, 
     `individuals and families at risk of homelessness' means 
     individuals and families who meet all of the following 
     criteria:
       ``(1) Have incomes below 20 percent of the median for the 
     geographic area, adjusted for household size.
       ``(2) Have moved frequently due to economic reasons, are 
     living in the home of another due to economic hardship, have 
     been notified that their right to occupy their current 
     housing or living situation will be terminated, live in 
     severely overcrowded housing, or otherwise live in housing 
     that has characteristics associated with instability and 
     increased risk of homelessness as determined by the 
     Secretary.
       ``(3) Have insufficient resources immediately available to 
     attain housing stability.
       ``(b) Waiver Authority.--The Secretary my waive any of the 
     criteria described in subsection (a) in a geographic area 
     upon a finding that all individuals and families who meet 
     such criteria in the geographic area will be served under 
     this title, and that individuals and families in the 
     geographic area who do not meet the criteria described in 
     subsection (a) remain at risk of homelessness.

     ``SEC. 1005. PROGRAM REQUIREMENTS.

       ``The program requirements set forth under section 426 
     shall apply to projects funded under this title.

     ``SEC. 1006. SELECTION CRITERIA.

       ``(a) In General.--The Secretary shall award funds to 
     recipients by a national competition based on criteria 
     established by the Secretary.
       ``(b) Required Criteria.--The criteria established under 
     subsection (a) shall include--
       ``(1) the previous performance of the recipient regarding 
     stabilizing housing and preventing homelessness, measured by 
     criteria that shall be announced by the Secretary, that shall 
     take into account barriers faced by individuals and families 
     at risk of homelessness;
       ``(2) the plan of the recipient, which shall describe--
       ``(A) how the number of individuals and families who become 
     homeless will be reduced in the community; and
       ``(B) how the length of time that individuals and families 
     remain homeless will be reduced;
       ``(3) all of the criteria established under section 
     427(b)(1)(B)(iii);
       ``(4) the methodology used by the recipient to determine 
     the priority for funding local projects under section 
     1002(d)(1), including use of the same methodology used in 
     section 427(b)(1)(C);
       ``(5) the degree to which services are to be provided by 
     the recipient to those individuals and families most at risk 
     of homelessness; and
       ``(6) all of the criteria established under--
       ``(A) subparagraphs (D) through (J) of subsection (b)(1) of 
     section 427; and
       ``(B) subsection (b)(2) of section 427.

     ``SEC. 1007. ELIGIBLE GRANT RECIPIENTS.

       ``The Secretary may make grants under this title to States, 
     local governments, or nonprofit corporations.

     ``SEC. 1008. MATCHING REQUIREMENT.

       ``(a) In General.--A collaborative applicant in a 
     geographic area in which funds are awarded under this title 
     shall specify contributions that shall be made available in 
     that geographic area, in an amount equal to not less than 25 
     percent of the Federal funds provided under the grant, except 
     that when services are provided to individuals and families 
     who are or were within the past 2 years residents of 
     institutions or systems of care funded, in whole or in part, 
     by State or local government, including prison, jail, child 
     welfare, and hospitals (including mental hospitals), for 
     periods exceeding 2 years, then the collaborative applicant 
     shall specify contributions that shall be made available in 
     an amount equal to not less than 60 percent of the Federal 
     funds provided under the grant.
       ``(b) Limitations on In-Kind Match.--The cash value of 
     services provided to the residents or clients of a recipient 
     of a grant under this title by an entity other than the 
     recipient may count toward the contributions in subsection 
     (a) only when documented by a memorandum of understanding 
     between the recipient and the other entity that such services 
     will be provided.
       ``(c) Countable Activities.--- The contributions required 
     under subsection (a) may consist of--
       ``(1) funding for any eligible activity described under 
     section 423 or section 1003; and
       ``(2) subject to subsection (b), in-kind provision of 
     services of any eligible activity described under section 423 
     or section 1003.

     ``SEC. 1009. REGULATIONS.

       ``The Secretary shall promulgate regulations to carry out 
     this title.

     ``SEC. 1010. REPORT TO CONGRESS.

       ``Not later than 1 year after the date of enactment of the 
     Community Partnership to End Homelessness Act of 2007, the 
     Secretary shall report to Congress on the accomplishments of 
     the program in this title.

     ``SEC. 1011. AUTHORIZATION OF APPROPRIATIONS.

       ``There are authorized to be appropriated to carry out this 
     title $250,000,000 for fiscal year 2008, and such sums as may 
     be necessary for fiscal years 2009, 2010, 2011, and 2012.''.

     SEC. 9. REPEALS AND CONFORMING AMENDMENTS.

       (a) Repeals.--Subtitles D, E, and F of title IV of the 
     McKinney-Vento Homeless Assistance Act (42 U.S.C. 11391 et 
     seq., 11401 et seq., and 11403 et seq.) are repealed.
       (b) Conforming Amendment.--Subtitle G of title IV of the 
     McKinney-Vento Homeless Assistance Act (42 U.S.C. 11408 et 
     seq.) is amended by redesignating subtitle G as subtitle D.

     SEC. 10. EFFECTIVE DATE.

       This Act shall take effect 6 months after the date of 
     enactment of this Act.
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