[House Report 105-407]
[From the U.S. Government Publishing Office]



105th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES

 1st Session                                                    105-407
_______________________________________________________________________


 
      HOMELESS HOUSING PROGRAMS CONSOLIDATION AND FLEXIBILITY ACT

                                _______
                                

 December 19, 1997.--Committed to the Committee of the Whole House on 
            the State of the Union and ordered to be printed

                                _______
                                

   Mr. Leach, from the Committee on Banking and Financial Services, 
                        submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 217]

  The Committee on Banking and Financial Services, to whom was 
referred the bill (H.R. 217) to amend title IV of the Stewart 
B. McKinney Homeless Assistance Act to consolidate the Federal 
programs for housing assistance for the homeless into a block 
grant program that ensures that States and communities are 
provided sufficient flexibility to use assistance amounts 
effectively, having considered the same, report favorably 
thereon with an amendment and recommend that the bill as 
amended do pass.
  The amendment is as follows:
  Strike out all after the enacting clause and insert in lieu 
thereof the following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Homeless Housing Programs 
Consolidation and Flexibility Act''.

SEC. 2. FINDINGS; PURPOSE.

  (a) Findings.--The Congress finds that--
          (1) the United States faces a crisis of individuals and 
        families who lack basic affordable housing and appropriate 
        shelter;
          (2) assistance from the Federal Government is an important 
        factor in the success of efforts by State and local governments 
        and the private sector to address the problem of hopelessness 
        in a comprehensive manner;
          (3) there are a multitude of Federal Government programs to 
        assist the homeless, including programs for elderly persons, 
        with disabilities, Native Americans, and veterans;
          (4) many of the Federal programs for the homeless have 
        overlapping objectives, resulting in multiple sources of 
        Federal funding for the same or similar purposes;
          (5) while the results of Federal programs to assist the 
        homeless generally have been positive, it is clear that there 
        is a need for consolidation and simplification of such programs 
        to better support local efforts;
          (6) increasing resources available to reduce hopelessness are 
        utilized in the development of services rather than the 
        creation of housing;
          (7) housing programs must be evaluated on the basis of their 
        effectiveness in reducing hopelessness, transitioning 
        individuals to permanent housing and self-sufficiency, and 
        creating an adequate plan to discharge homeless persons to and 
        from mainstream service systems;
          (8) effective hopelessness treatment should provide a 
        comprehensive housing system (including transitional and 
        permanent housing) and, while not all homeless individuals and 
        families attain self-sufficiency and independence by utilizing 
        transitional housing and then permanent housing, in many cases 
        such individuals and families are best able to reenter society 
        directly through permanent, supportive housing;
          (9) supportive housing activities support homeless persons in 
        an environment that can meet their short-term or long-term 
        needs and prepare them to reenter society as appropriate;
          (10) hopelessness should be treated as part of a symptom of 
        many neighborhood and community problems, whose remedies 
        require a holistic approach integrating all available 
        resources;
          (11) there are many private sector entities, particularly 
        nonprofit organizations, that have successfully operated 
        homeless programs;
          (12) government restrictions and regulations may discourage 
        and impede innovative approaches to hopelessness, such as 
        coordination of the various types of assistance that are 
        required by homeless persons; and
          (13) the Federal Government has a responsibility to establish 
        partnerships with State and local governments and the private 
        sector to address comprehensively the problems of hopelessness.
  (b) Purpose.--It is the purpose of this Act--
          (1) to consolidate the existing housing programs for homeless 
        persons under title IV of the Stewart B. McKinney Homeless 
        Assistance Act into a single block grant program for housing 
        assistance for the homeless;
          (2) to allow flexibility and creativity in rethinking 
        solutions to hopelessness, including alternative housing 
        strategies and an improved service sector;
          (3) to provide Federal assistance to reduce hopelessness on a 
        basis that requires recipients of such assistance to supplement 
        the federally provided amounts and thereby guarantee the 
        provision of a certain level of housing and complementary 
        services necessary to meet the needs of the homeless 
        population; and
          (4) to ensure that multiple Federal agencies are involved in 
        the provision of housing, human services, employment, and 
        education assistance both through the funding provided for 
        implementation of the Stewart B. McKinney Homeless Assistance 
        Act and mainstream funding and to encourage entrepreneurial 
        approaches in the provision of housing for homeless people.

SEC. 3. GENERAL PROVISIONS.

  Title I of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 
11301 et seq.) is amended--
          (1) by striking section 102;
          (2) in section 103--
                  (A) in subsection (a), by striking ``the term 
                `homeless' or `homeless individual or homeless person' 
                includes'' and inserting ``the terms `homeless', 
                `individual', and `homeless person' include''; and
                  (B) in subsection (c), by striking ``the term 
                `homeless' or `homeless individual' does not include'' 
                and inserting ``the terms `homeless', `individual', and 
                `homeless person' do not include''; and
          (3) by redesignating sections 103, 104, and 105 as sections 
        102, 103, and 104, respectively.

SEC. 4. FEDERAL EMERGENCY MANAGEMENT AGENCY FOOD AND SHELTER PROGRAM.

  Section 322 of the Stewart B. McKinney Homeless Assistance Act (42 
U.S.C. 11352) is amended to read as follows:

``SEC. 322. AUTHORIZATION OF APPROPRIATIONS.

  ``There are authorized to be appropriated to carry out this title 
such sums as may be necessary for each of fiscal years 1998, 1999, 
2000, 2001, and 2002.''.

SEC. 5. PERMANENT HOUSING DEVELOPMENT AND FLEXIBLE BLOCK GRANT HOMELESS 
                    ASSISTANCE PROGRAM.

  (a) In General.--Title IV of the Stewart B. McKinney Homeless 
Assistance Act (42 U.S.C. 11361 et seq.) is amended to read as follows:

  ``TITLE IV--PERMANENT HOUSING DEVELOPMENT AND FLEXIBLE BLOCK GRANT 
                      HOMELESS ASSISTANCE PROGRAM

                    ``Subtitle A--General Provisions

``SEC. 401. PURPOSE; PERFORMANCE MEASURES.

  ``(a) Purpose.--The purpose of the program under this title is to 
provide assistance for permanent housing development for homeless 
persons and promote the development of a comprehensive housing system 
that transitions homeless persons to live as independently as possible, 
including assistance in the form of permanent housing development, 
supportive housing, emergency shelters, supportive services, and 
activities to prevent hopelessness.
  ``(b) Performance Measures.--Consistent with the purposes and 
requirements of the Government Performance and Results Act of 1993, the 
programs under this title and the implementation of such programs by 
the Department of Housing and Urban Development shall comply with the 
following performance goals:
          ``(1) The Federal Government shall ensure an effective grant 
        allocation process and sound financial management of the 
        process. Such grant allocation process shall be implemented to 
        ensure that--
                  ``(A) local governments shall work with the 
                appropriate Local Board to create innovative plans 
                sufficient to address the needs of homeless people in 
                their community; and
                  ``(B) all eligible communities receive funds to 
                address the needs of homeless people in such 
                communities through local governments or private 
                nonprofit organizations.
          ``(2) The financial resources provided under this title shall 
        be used effectively to create more low-cost permanent housing 
        and to transition homeless people to self-sufficiency and 
        permanent housing.
          ``(3) The Federal Government shall use the Interagency 
        Council on the Homeless as a vehicle to coordinate services, 
        programs, and funds to promote the transition of homeless 
        people to self-sufficiency in permanent housing.

``SEC. 402. GRANT AUTHORITY.

  ``(a) In General.--The Secretary may make grants as provided under 
this title to eligible grantees for States, metropolitan cities and 
urban counties, consortia, and insular areas for carrying out eligible 
activities under subtitles B and C.
  ``(b) Grant Amounts.--Except as otherwise provided under this title, 
amounts for a fiscal year allocated under section 406 shall be used as 
follows:
          ``(1) Insular areas.--Any amounts for the fiscal year 
        allocated under section 406(a) for an insular area shall be 
        used for a grant to the eligible grantee for the insular area 
        for such fiscal year.
          ``(2) Permanent housing development.--Any amounts allocated 
        under section 406(b) for use under subtitle B shall be used for 
        grants under section 406(b)(2) to States, metropolitan cities, 
        urban counties, and consortia for such fiscal year.
          ``(3) Flexible block grant homeless assistance.--Any amounts 
        allocated under section 406(c) for a State, metropolitan city 
        or urban county, or consortium shall be used for a grant under 
        section 406(c) to the eligible grantee for the State, 
        metropolitan city or urban county, or consortium respectively, 
        for the fiscal year.
  ``(c) Use for Eligible Activities.--Grant amounts provided under this 
title and any supplemental funds provided under section 407 may be used 
only as follows:
          ``(1) Insular area grants.--In the case of a grant under 
        subsection (b)(1) for an insular area, for eligible activities 
        under subtitle C benefiting the insular area.
          ``(2) Permanent housing development grants.--In the case of a 
        grant under subsection (b)(2) to a State, metropolitan city or 
        urban county, or consortium, for eligible activities under 
        subtitle B within the State, metropolitan city or urban county, 
        or consortium, respectively.
          ``(3) Flexible block grant homeless assistance.--In the case 
        of a grant under subsection (b)(3) for a State, metropolitan 
        city or urban county, or consortium, for eligible activities 
        under subtitle C benefiting the State, city or county, or 
        consortium and carried out only within non entitlement areas of 
        the State, within the city or county, or consortium, as 
        applicable.

``SEC. 403. ELIGIBLE GRANTEES.

  ``For purposes of this title, the term `eligible grantee' has the 
following meaning:
          ``(1) Grants for insular areas.--In the case of a grant from 
        amounts allocated under section 406(a) for an insular area, 
        such term means--
                  ``(A) the insular area, or an agency, office, or 
                other entity of the area; or
                  ``(B) to the extent that an entity that is a private 
                nonprofit organization is authorized by the government 
                of the insular area to act as the grantee for the area 
                for purposes of this title, such private nonprofit 
                entity.
          ``(2) Grants for permanent housing development and flexible 
        assistance.--In the case of a grant from amounts allocated 
        under section 406(b) or section 406(c) for a State, or for a 
        metropolitan city or urban county, such term means--
                  ``(A) the State, or the metropolitan city or urban 
                county, respectively, or an agency, office, or other 
                entity of the State, or the city or county, 
                respectively;
                  ``(B) a consortium of units of general local 
                governments which shall be deemed to be a metropolitan 
                city, but only if the Secretary determines that the 
                consortium--
                          ``(i) is comprised of units of general local 
                        government which are geographically contiguous 
                        (which may include all units of general local 
                        government within a State);
                          ``(ii) has sufficient authority and 
                        administrative capability to carry out the 
                        purposes of this title on behalf of its member 
                        jurisdictions; and
                          ``(iii) will, according to a written 
                        certification by the State (or States, if the 
                        consortium includes jurisdictions in more than 
                        one State) in which its member jurisdictions 
                        are located, direct its activities to 
                        alleviation of hopelessness problems within the 
                        State (or States); and
                  ``(C) to the extent that a private nonprofit 
                organization is authorized by the government of the 
                State or the city or county under subparagraph (B) to 
                act as the grantee for the State, or the city or 
                county, respectively, for purposes of this title, such 
                private nonprofit organization.

``SEC. 404. USE OF PROJECT SPONSORS.

  ``(a) Transfer of Grant Amounts by Grantees.--Eligible activities 
assisted with grant amounts provided under this title may be carried 
out directly by the grantee or by other entities serving as project 
sponsors, which are provided such grant amounts by the grantee or a 
subgrantee of the grantee.
  ``(b) Competitive Selection Criteria.--To the extent that a grantee 
does not use grant amounts for eligible activities carried out directly 
by the grantee, the grantee shall select eligible activities for 
assistance and project sponsors to carry out such eligible activities 
pursuant to a competition based on criteria established by the 
Secretary, which shall include--
          ``(1) whether the project sponsor that will carry out the 
        activity is financially responsible;
          ``(2) the ability of the project sponsor to carry out the 
        eligible activity and the project sponsor's experience in 
        successfully transitioning homeless persons into stable, long-
        term housing;
          ``(3) the need for the type of eligible activity in the area 
        to be served;
          ``(4) the extent to which the amount of assistance to be 
        provided with grant amounts will be supplemented with resources 
        from other public and private sources;
          ``(5) the cost-effectiveness of the proposed eligible 
        activity, considered in relation to the ultimate goal of moving 
        people out of hopelessness permanently, including consideration 
        of high-cost area services, and other necessary amenities;
          ``(6) the extent to which the project sponsor carrying out 
        the eligible activity will coordinate with Federal, State, 
        local, and private entities serving homeless persons in the 
        development of a comprehensive housing system and in the 
        planning and operation of the activity, to the extent 
        practicable, and pursuant to section 408(m)(3) will carry out 
        the activity in coordination and conjunction with federally 
        funded activities for the homeless;
          ``(7) the extent to which the project sponsor employs 
        homeless persons or involves homeless persons or formerly 
        homeless persons in the operation and design of its programs; 
        and
          ``(8) such other factors as the Secretary determines to be 
        appropriate to carry out this title in an effective and 
        efficient manner.

``SEC. 405. COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY COMPLIANCE.

  ``A grant under this title may be provided to an eligible grantee 
only if--
          ``(1) the applicable jurisdiction for which the grant amounts 
        are allocated under section 406 has submitted to the Secretary 
        a comprehensive housing affordability strategy in accordance 
        with section 105 of the Cranston-Gonzalez National Affordable 
        Housing Act and any other requirement established by the 
        Secretary and which is in effect for the fiscal year for which 
        such grant amounts are to be provided; and
          ``(2) the public official of such applicable jurisdiction who 
        is responsible for submitting the comprehensive housing 
        affordability strategy certifies to the Secretary that the 
        eligible activities to be assisted with such grant amounts are 
        or will be consistent with the comprehensive housing 
        affordability strategy for the jurisdiction and the plans in 
        such strategy for addressing housing needs for homeless 
        families.

``SEC. 406. ALLOCATION AND AVAILABILITY OF AMOUNTS.

  ``(a) Allocation for Insular Areas.--Of the amount made available for 
grants under this title for a fiscal year, the Secretary shall reserve 
for grants for each of the insular areas amounts in accordance with an 
allocation formula established by the Secretary.
  ``(b) Allocation for Permanent Housing Development Grants Under 
Subtitle B.--
          ``(1) Annual portion of appropriated amount available.--Of 
        the amount made available for grants under this title for a 
        fiscal year that remains after amounts are reserved under 
        subsection (a), the Secretary shall allocate for use under 
        subtitle B, 30 percent of such funds (except that for fiscal 
        years 1998 and 1999, the Secretary shall allocate 25 percent of 
        such funds for use under such subtitle).
          ``(2) Grants.--Using the amounts allocated for use under 
        subtitle B for a fiscal year, the Secretary shall make grants 
        to States, metropolitan cities and urban counties, and 
        consortia pursuant to a national competition based on the 
        criteria specified in section 404(b) and in accordance with 
        such other factors as the Secretary determines to be 
        appropriate to carry out this title in an effective and 
        efficient manner.
          ``(3) Limitation.--In making grants using amounts allocated 
        for use under subtitle B for any fiscal year, the Secretary 
        shall ensure that not more than 35 percent of the total amount 
        allocated for such use for such fiscal year is used for 
        activities under section 441 of the Stewart B. McKinney 
        Homeless Assistance Act, as in effect on October 31, 1997.
  ``(c) Allocation for Flexible Block Grant Homeless Assistance Under 
Subtitle C.--
          ``(1) Annual portion of appropriated amount available for 
        subtitle c activities.--Of the amount made available for grants 
        under this title for a fiscal year that remains after amounts 
        are reserved under subsection (a), the Secretary shall allocate 
        for use under subtitle C 70 percent of such funds (except that 
        for fiscal years 1998 and 1999, the Secretary shall allocate 75 
        percent of such funds for use under such subtitle).
          ``(2) Allocation of amount available between metropolitan 
        cities and urban counties and states.--Of the amount allocated 
        pursuant to paragraph (1) for use under subtitle C for a fiscal 
        year, 70 percent shall be allocated for metropolitan cities and 
        urban counties and 30 percent shall be allocated for States.
          ``(3) Interim determination of allocated amount.--Except as 
        provided in subparagraph (A) the Secretary shall allocate 
        amounts available for use under subtitle C for a fiscal year so 
        that--
                  ``(A) for each metropolitan city and urban county, 
                the percentage of the total amount allocated under this 
                subsection for cities and counties that is allocated 
                for such city or county is equal to the percentage of 
                the total amount available for the preceding fiscal 
                year under section 106(b) of the Housing and Community 
                Development Act of 1974 for grants to metropolitan 
                cities and urban counties that was allocated for such 
                city or county; and
                  ``(B) for each State, the percentage of the total 
                amount allocated under this subsection for States that 
                is allocated for such State is equal to the percentage 
                of the total amount available for the preceding fiscal 
                year under section 106(d) of the Housing and Community 
                Development Act of 1974 for grants to States that was 
                allocated for such State.
          ``(4) Minimum Appropriation Requirement.--If, by December 1 
        of any fiscal year, the amount appropriated for grants under 
        this title for such fiscal year is less than $750,000,000--
                  ``(A) the Secretary shall not allocate amounts for 
                such fiscal year under subsection (b) and this 
                subsection;
                  ``(B) subsection (d) shall not apply to amounts for 
                such fiscal year; and
                  ``(C) notwithstanding any other provision of this 
                title, the Secretary shall make grants under this title 
                from such amounts to States, units of general local 
                government, and private nonprofit organizations, 
                pursuant to a national competition based on the 
                criteria specified in section 404(b).
          ``(5) Study; submission of information to congress related to 
        alternative methods of allocation.--Not later than 1 year after 
        the date of the enactment of the Homeless Housing Program 
        Consolidation and Flexibility Act, the Secretary shall--
                  ``(A) submit to Congress--
                          ``(i) the best available methodology for 
                        determining a formula relative to the 
                        geographic allocation of funds under this 
                        subtitle among entitlement communities and 
                        nonentitlement areas based on the incidence of 
                        homelessness and factors that lead to 
                        homelessness;
                          ``(ii) proposed alternatives to the formula 
                        submitted pursuant to clause (i) for allocating 
                        funds under this section, including an 
                        evaluation and recommendation on a 75/25 
                        percent allocation of flexible block grant 
                        homeless assistance between metropolitan cities 
                        and urban counties and States under paragraph 
                        (2);
                          ``(iii) an analysis of the deficiencies in 
                        the current allocation formula described in 
                        section 106(b) of the Housing and Community 
                        Development Act of 1974, and an analysis of the 
                        adequacy of current indices used as proxies for 
                        measuring homelessness; and
                          ``(iv) an analysis of the bases underlying 
                        each of the proposed allocation methods;
                  ``(B) perform the duties required by this paragraph 
                in ongoing consultation with--
                          ``(i) the Subcommittee on Housing Opportunity 
                        and Community Development of the Committee on 
                        Banking, Housing, and Urban Affairs of the 
                        Senate;
                          ``(ii) the Subcommittee on Housing and 
                        Community Opportunity of the Committee on 
                        Banking and Financial Services of the House of 
                        Representatives;
                          ``(iii) organizations representing States, 
                        metropolitan cities and urban counties;
                          ``(iv) organizations representing rural 
                        communities;
                          ``(v) organizations representing veterans;
                          ``(vi) organizations representing persons 
                        with disabilities;
                          ``(vii) members of the academic community; 
                        and
                          ``(viii) national homelessness advocacy 
                        groups; and
                  ``(C) estimate the amount of funds that will be 
                received annually by each entitlement community and 
                nonentitlement area under each such alternative 
                allocation system and compare such amounts to the 
                amount of funds received by each entitlement community 
                and nonentitlement area in prior years under this 
                section.
          ``(6) Minimum grant amount.--Notwithstanding paragraph (3), a 
        State or metropolitan city or urban county shall receive no 
        less funding under this subsection in the first full fiscal 
        year after the date of the enactment of the Homeless Housing 
        Programs Consolidation and Flexibility Act than 90 percent of 
        theaverage of the amounts awarded annually to that jurisdiction 
for homeless assistance programs administered by the Secretary (not 
including allocations for shelter plus care and single room occupancy 
programs as defined in, and in effect pursuant to, this Act prior to 
the date of the enactment of the Homeless Housing Programs 
Consolidation and Flexibility Act) under this title during fiscal years 
1994 through 1997, no less than 85 percent in the second full fiscal 
year after the date of the enactment of the Homeless Housing Programs 
Consolidation and Flexibility Act, no less than 80 percent in the third 
and fourth full fiscal years after the date of the enactment of the 
Homeless Housing Programs Consolidation and Flexibility Act, and no 
less than 75 percent in the fifth full fiscal year after the date of 
the enactment of the Homeless Housing Programs Consolidation and 
Flexibility Act, but only if the amount appropriated pursuant to 
section 435 in each such fiscal year exceeds $800,000,000. If that 
amount does not exceed $800,000,000 in any fiscal year referred to in 
the first sentence of this paragraph, the jurisdiction may receive its 
proportionate share of the amount appropriated which may be less than 
the amount stated such sentence for such fiscal year.
          ``(7) Minimum state allocation.--Notwithstanding paragraphs 
        (3) and (6), if in any fiscal year the allocation for a State 
        is less than $2,000,000, the allocation for that State shall be 
        increased to $2,000,000 and the increase shall be provided by 
        deducting pro rata amounts from the allocations of States with 
        allocations of more than $2,000,000.
          ``(8) Reduction.--Notwithstanding paragraphs (1) through (7), 
        in any fiscal year, the Secretary may provide a grant under 
        this subsection for a State or metropolitan city or urban 
        county, in an amount less than the amount allocated under those 
        paragraphs, if the Secretary determines that the jurisdiction 
        has failed to comply with requirements of this title, or that 
        such action is otherwise appropriate.
  ``(d) Recapture of Allocated Amounts.--The Secretary shall recapture 
the following amounts:
          ``(1) Unused amounts.--Not less than once during each fiscal 
        year, the Secretary shall recapture any amounts allocated under 
        this section that--
                  ``(A) are allocated for a State, metropolitan city or 
                urban county, or insular area, but not provided to an 
                eligible grantee for the jurisdiction because of 
                failure to apply for a grant under this title or 
                failure to comply with the requirements of this title;
                  ``(B) were provided to a grantee and (i) recaptured 
                under this title, or (ii) not utilized by the grantee 
                in accordance with the purposes and objectives of the 
                approved application of the grantee within a reasonable 
                time period, which the Secretary shall establish; or
                  ``(C) are returned to the Secretary by the time of 
                such reallocation.
          ``(2) Amounts allocated to grantees that fail to comply with 
        comprehensive housing affordability strategy requirements.--
        Notwithstanding paragraph (1), if, for any fiscal year, a 
        metropolitan city or urban county fails to comply with the 
        requirement under section 405(1) during the 90-day period 
        beginning on the date that amounts for grants under this title 
        for such fiscal year first become available for allocation, the 
        amounts that would have been allocated under subsection (c) of 
        this section for such city or county shall be reallocated for 
        the State in which the unit is located, but only if the State 
        has complied with the requirement under section 405(1). Any 
        amounts that cannot be allocated for a State under the 
        preceding sentence shall be reallocated for other metropolitan 
        cities and urban counties and States that comply with such 
        requirement and demonstrate extraordinary need or large numbers 
        of homeless persons, as determined by the Secretary.
  ``(e) Reallocation of Amounts.--Any amounts allocated under 
subsection (b) that are recaptured pursuant to subsection (d)(1) shall 
be reallocated only for use under subtitle B. Any amounts allocated 
under subsection (c) that are recaptured pursuant to subsection (d)(1) 
shall be reallocated only for use under subtitle C.

``SEC. 407. MATCHING FUNDS REQUIREMENT.

  ``(a) In General.--Each State, metropolitan city or urban county, and 
insular area for which a grant under this title is made shall 
supplement the amount of the grant provided under this title with an 
amount that is not less than--
          ``(1) 50 percent of the amount of such grant, if the State, 
        metropolitan city or urban county, and insular area has 
        indicated in its application for such grant that it will not 
        include as a portion of its supplementation the cost or value 
        of donated services; or
          ``(2) 100 percent of the grant amount, if the State, 
        metropolitan city or urban county, and insular area indicated 
        in its application for such grant that it will include as a 
        portion of its supplementation the cost or value of donated 
        services.
  ``(b) Matching Requirement for Use of More than 35 Percent of Funds 
for Supportive Services.--In addition to the supplemental funds 
required pursuant to subsection (a), for the second full fiscal year 
after the date of the enactment of the Homeless Housing Programs 
Consolidation and Flexibility Act and each fiscal year thereafter, a 
State, consortium, or metropolitan city or urban county shall 
supplement the grant funds for the State, consortium, city or county in 
an amount equal to the amount used by that State, metropolitan city or 
urban county, or consortium for supportive services in a fiscal year 
that exceeds 35 percent of the total grant amount for the State, 
metropolitan city or urban county, or consortium for that fiscal year.
  ``(c) Treatment of Independent State or Local Government Funds.--Any 
State or local government funds used independently from the program 
under this title, or designated for such use, to assist the homeless by 
carrying out activities that would be eligible for assistance under 
this subtitle may be counted toward the amount required pursuant to 
subsection (a).
  ``(d) Authority for Grantees To Require Supplementation.--
          ``(1) In general.--Each grantee under this title may require 
        any subgrantee or project sponsor to whom it provides such 
        grant amounts to provide supplemental amounts required under 
        subsections (a) and (b) with an amount of funds from sources 
        other than this title.
          ``(2) Amount allowed to be required by grantee.--
                  ``(A) Grant amount.--Except as provided in paragraph 
                (3), a grantee may not require any subgrantee or 
                project sponsor to whom it provides such grant amounts 
                under this title to provide--
                          ``(i) supplemental amounts required under 
                        subsection (a)(1) in an amount exceeding 25 
                        percent of the grant amount provided to the 
                        grantee or project sponsor; or
                          ``(ii) supplemental amounts required under 
                        subsection (a)(2) in an amount exceeding 50 
                        percent of the grant amount provided to the 
                        grantee or project sponsor.
                  ``(B) Supportive services.--A grantee may require any 
                subgrantee or project sponsor to whom it provides grant 
                amounts under this title to provide supplemental 
                amounts required under subsection (b) in an amount 
                equal to the amount used by subgrantee or project 
                sponsor for supportive services in a fiscal year that 
                exceeds 35 percent of the total amount allocated 
                pursuant to this subsection for that fiscal year.
          ``(3) Supplemental funds may be considered as matching 
        funds.--Supplemental amounts provided by a subgrantee or 
        project sponsor pursuant to this subsection may be considered 
        supplemental amounts for purposes of compliance by any grantee 
        with the requirement under subsections (a) and (b).
  ``(e) Use of Funds.--Any supplemental funds made available in 
compliance with this section shall be available only to carry out 
eligible activities (1) under subtitle B, if the grant amounts are 
available only for such activities, or (2) under subtitle C, if the 
grant amounts are available only for such activities.
  ``(f) Supplemental Funds.--In determining the amount of supplemental 
funds provided in accordance with this section, the following amounts 
may be included:
          ``(1) Cash.
          ``(2) The value of any donated or purchased material or 
        building.
          ``(3) The value of any lease on a building.
          ``(4) The proceeds from bond financing validly issued by a 
        State or unit of general local government, agency, or 
        instrumentality thereof, and repayable with revenues derived 
        from the activity assisted under this title.
          ``(5) The amount of any salary paid to staff to carry out a 
        program for eligible activities under subtitle B or C.
          ``(6) The cost or value of any donated goods.
          ``(7) The value of taxes, fees, or other charges that are 
        normally and customarily imposed, but which are waived or 
        foregone to assist in providing housing or services for the 
        homeless.
          ``(8) The cost of on-site and off-site infrastructure that is 
        directly related to and necessary for providing housing or 
        services for the homeless.
          ``(9) The cost or value of any donated services, but only if 
        the State, metropolitan city or urban county, and insular area 
        has stated in its application for a grant under this title that 
        it shall supplement the amount of such grant, in accordance 
        with section 407(a)(2).
  ``(g) Reduction in matching requirements.--
          ``(1) In general.--The Secretary shall reduce the matching 
        requirement under subsection (a) during a fiscal year by--
                  ``(A) 50 percent for a jurisdiction that certifies 
                that it is in fiscal distress; and
                  ``(B) 100 percent for a jurisdiction that certifies 
                that it is in severe fiscal distress.
        For purposes of subparagraphs (A) and (B), the jurisdiction 
        shall make the certification on behalf of a recipient that is 
        not a governmental jurisdiction.
          ``(2) Definitions.--For purposes of this subsection--
                  ``(A) the term `fiscal distress' means, with respect 
                to a unit of general local government, insular area, or 
                State recipient that is a governmental jurisdiction, 
                that the jurisdiction satisfies one of the distress 
                criteria set forth in paragraph (3); and
                  ``(B) the term `severe fiscal distress' means, with 
                respect to a unit of general local government, insular 
                area, or State recipient that is a governmental 
                jurisdiction, that the jurisdiction satisfies both of 
                the distress criteria set forth in paragraph (3).
          ``(3) Distress criteria.--For a unit of general local 
        government, an insular area, or a State recipient that is a 
        governmental jurisdiction certifying that it is distressed, the 
        following criteria shall apply:
                  ``(A) Poverty rate.--The average poverty rate in the 
                jurisdiction for the calendar year immediately 
                preceding the year in which its fiscal year begins was 
                equal to or greater than 125 percent of the average 
                national poverty rate during such calendar year (as 
                determined according to information of the Bureau of 
                the Census).
                  ``(B) Per capita income.--The average per capita 
                income in the jurisdiction for the calendar year 
                immediately preceding the year in which its fiscal year 
                begins was less than 75 percent of the average national 
                per capita income during such calendar year (as 
                determined according to information of the Bureau of 
                the Census).
          ``(4) States.--In the case of a State, the Secretary shall 
        reduce the matching requirement under subsection (a) as 
        provided by the preceding paragraphs, except that the 
        certification shall be made with respect to the area, as 
        determined by the Secretary, in which the activities are to be 
        carried out.
          ``(5) Waiver in disaster areas.--If a recipient is located in 
        an area in which a declaration of a disaster pursuant to the 
        Robert T. Stafford Disaster Relief and Emergency Assistance Act 
        is in effect for any part of a fiscal year, the Secretary may 
        reduce the matching requirement for that fiscal year under 
        subsection (a) during that fiscal year by up to 100 percent.

``SEC. 408. PROGRAM REQUIREMENTS.

  ``(a) Applications.--
          ``(1) Form and procedure.--The Secretary shall make a grant 
        under this title only pursuant to an application for a grant 
        submitted by an eligible grantee in the form and in accordance 
        with the procedures established by the Secretary. The Secretary 
        may not give preference or priority to any application on the 
        basis that the application was submitted by any particular type 
        of eligible grantee.
          ``(2) Contents.--The Secretary shall require that 
        applications contain at a minimum the following information:
                  ``(A) Grants for permanent housing development 
                activities.--In the case of an application for a grant 
                available for use for activities under subtitle B or an 
                application for a grant available for use under 
                subtitle C for permanent housing development 
                assistance--
                          ``(i) a description of the permanent housing 
                        development activities to be assisted;
                          ``(ii) a description of the entities that 
                        will carry out such activities and the programs 
                        for carrying out such activities; and
                          ``(iii) assurances satisfactory to the 
                        Secretary that the facility will comply with 
                        the requirement under subsection (j).
                  ``(B) Flexible block grant homeless assistance.--In 
                the case of an application for a grant available for 
                use for activities under subtitle C--
                          ``(i) a description of the eligible 
                        activities to be assisted, to the extent 
                        available at the time;
                          ``(ii) in the case of a grant for a facility 
                        assisted under paragraph (1) or (2) of section 
                        421(a), assurances satisfactory to the 
                        Secretary that the facility will comply with 
                        the requirement under subsection (j);
                          ``(iii) in the case of a grant for a 
                        supportive housing facility assisted under this 
                        title that does not receive assistance under 
                        paragraph (1) or (2) of section 421(a), annual 
                        assurances during the period specified in the 
                        application that the facility will be operated 
                        for the purpose specified in the application 
                        for such period; and
                          ``(iv) in the case of a grant for a 
                        supportive housing facility, reasonable 
                        assurances that the project sponsor will own or 
                        have control of a site not later than the 
                        expiration of the 12-month period beginning 
                        upon notification of an award of grant 
                        assistance, unless the application proposes 
                        providing supportive housing assisted under 
                        section 421(a)(3) or housing that will 
                        eventually be owned or controlled by the 
                        families and individuals served; except that a 
                        project sponsor may obtain ownership or control 
                        of a suitable site different from the site 
                        specified in the application.
                  ``(C) All grants.--In the case of an application for 
                any grant under this title--
                          ``(i) a description of the size and 
                        characteristics of the population, including 
                        specific references to populations with special 
                        needs, that will be served by the eligible 
                        activities assisted with grant amounts;
                          ``(ii) a description of the public and 
                        private resources that are expected to be made 
                        available in connection with grant amounts 
                        provided;
                          ``(iii) a description of the process to be 
                        used in compliance with section 404(b) to 
                        select eligible activities to be assisted and 
                        project sponsors;
                          ``(iv) a certification that the applicant 
                        will comply with the requirements of the Fair 
                        Housing Act, title VI of the Civil Rights Act 
                        of 1964, section 504 of the Rehabilitation Act 
                        of 1973, and the Age Discrimination Act of 
                        1975, and will affirmatively further fair 
                        housing; and
                          ``(v) a statement of whether the applicant 
                        will or will not include, as a portion of its 
                        supplementation amount required under section 
                        407(a), the cost or value of donated services.
  ``(b) Required Agreements.--The Secretary may not provide a grant 
under this title for any applicant unless the applicant agrees--
          ``(1) to ensure that the eligible activities carried out with 
        grant amounts will be carried out in accordance with the 
        provisions of this title;
          ``(2) to conduct an ongoing assessment of the supportive 
        services required by homeless persons assisted by the eligible 
        activities and the availability of such services to such 
        persons;
          ``(3) in the case of grant amounts to be used under subtitle 
        C for a supportive housing facility or an emergency shelter, to 
        ensure the provision of such residential supervision as the 
        Secretary determines is necessary to facilitate the adequate 
        provision of supportive services to the residents and users of 
        the facility or shelter;
          ``(4) to monitor and report under section 431 to the 
        Secretary on the progress of the eligible activities carried 
        out with grant amounts;
          ``(5) to develop and implement procedures to ensure (A) the 
        confidentiality of records pertaining to any individual 
        provided family violence prevention or treatment services 
        through any activities assisted with grant amounts, and (B) 
        that the address or location of any family violence shelter 
        facility assisted with grant amounts will not be made public, 
        except with written authorization of the person or persons 
        responsible for the operation of such facility;
          ``(6) to the maximum extent practicable, to involve homeless 
        persons and families, through employment, volunteer services, 
        or otherwise, in carrying out eligible activities assisted with 
        grant amounts; and
          ``(7) to comply with such other terms and conditions as the 
        Secretary may establish to carry out this title in an effective 
        and efficient manner.
  ``(c) Occupancy Charge.--Any homeless person or family residing in a 
dwelling unit assisted under this title may be required to pay an 
occupancy charge in an amount determined by the grantee providing the 
assistance, which may not exceed an amount equal to 30 percent of the 
adjusted income (as such term is defined in section 3(b) of the United 
States Housing Act of 1937 or any other subsequent provision of Federal 
law defining such term for purposes of eligibility for, or rental 
charges in, public housing) of the person or family. Occupancy charges 
paid may be reserved, in whole or in part, to assist residents in 
moving to permanent housing.
  ``(d) Flood Protection Standards.--Flood protection standards 
applicable to housing acquired, rehabilitated, constructed, or assisted 
with grant amounts provided under this title shall be no more 
restrictive than the standards applicable under Executive Order No. 
11988 (42 U.S.C. 4321 note; relating to floodplain management)to the 
other programs in effect under this title immediately before the 
enactment of the Homeless Housing Programs Consolidation and 
Flexibility Act.
  ``(e) Participation of Citizens and Others.
          ``(1) In general.--Each grantee shall--
                  ``(A) each fiscal year, make available to its 
                citizens, public agencies, and other interested parties 
                information concerning the amount of assistance the 
                jurisdiction expects to receive and the range of 
                activities that may be undertaken with the assistance;
                  ``(B) publish the proposed application in a manner 
                that, in the determination of the Secretary, affords 
                affected citizens, public agencies, and other 
                interested parties a reasonable opportunity to examine 
                its content and to submit comments on it;
                  ``(C) each fiscal year, hold one or more public 
                hearings to obtain the views of citizens, public 
                agencies, and other interested parties on the housing 
                needs of the jurisdiction; and
                  ``(D) provide citizens, public agencies, and other 
                interested parties with reasonable access to records 
                regarding any uses of any assistance the grantee may 
                have received under this subtitle during the preceding 
                5 years.
          ``(2) Electronic access.--A grantee may comply with the 
        requirement under subparagraphs (A), (B), and (D) of paragraph 
        (1) by making the information available through interactive 
        computer or telephone services or other electronic information 
        networks and systems appropriate for making such information 
        widely available to the public.
          ``(3) Notice and comment.--Before submitting any substantial 
        amendment to an application under this Act, a grantee shall 
        provide citizens with reasonable notice of, and opportunity to 
        comment on, the amendment.
          ``(4) Consideration of comments.--A grantee shall consider 
        any comments or views of citizens in preparing a final 
        application or amendment to an application for submission. A 
        summary of such comments or views shall be attached when an 
        application or amendment to an application is submitted. The 
        submitted application or amendment shall be made available to 
        the public.
          ``(5) Authority of secretary.--The Secretary shall establish 
        procedures appropriate and practicable for providing a fair 
        hearing and timely resolution of citizen complaints related to 
        applications under this subtitle.
          ``(6) Homeless individuals.--The Secretary shall, by 
        regulation, require each grantee to ensure that each project 
        sponsor assisted by the grantee provides for the participation 
        of not less than 1 homeless person or former homeless person on 
        the board of directors or other equivalent policymaking entity 
        of the project sponsor, to the extent that such sponsor 
        considers and makes policies and decisions regarding any 
        activity or facility, supportive services, or assistance 
        provided with grant amounts under this title. The Secretary 
        shall provide that a grantee may grant waivers to project 
        sponsors unable to meet the requirement under the preceding 
        sentence if the sponsor agrees to otherwise consult with 
        homeless or formerly homeless persons in considering and making 
        such policies and decisions.
  ``(f) Limitation on Use of Funds.--No grant amounts received under 
this title (or any funds provided under section 407 or otherwise to 
supplement such grants) may be used to replace other State or local 
funds previously used, or designated for use, to assist homeless 
persons.
  ``(g) Limitation on Administrative Expenses.--Notwithstanding any 
other provision of this title, of any grant amounts under this title 
used to carry out eligible activities, the grantee or the project 
sponsor may use for administrative purposes--
          ``(1) an amount not exceeding 5 percent of such grant amount; 
        or
          ``(2) if the grantee implements use of a standardized 
        homeless database management system to record and assess data 
        on the usage of homeless housing, services, and client needs, 
        and on the number and other information related to populations 
        with special needs, an amount not exceeding 7.5 percent of such 
        grant amount.
  ``(h) Housing Quality.--
          ``(1) Requirement.--Assistance may not be provided with grant 
        amounts made available for use under this title for any 
        permanent housing development, dwelling unit, supportive 
        housing facility, or emergency shelter that fails to comply 
        with the housing quality standards applicable under paragraph 
        (2) in the jurisdiction in which the housing is located, unless 
        the deficiency is promptly corrected and the project sponsor 
        verifies the correction.
          ``(2) Applicable standards.--The housing quality standards 
        applicable under this subsection to permanent housing, a 
        dwelling unit, supportive housing facility, or emergency 
        shelter shall be--
                  ``(A) in the case of permanent housing, a unit, 
                facility, or shelter located in a jurisdiction which 
                has in effect laws, regulations, standards, or codes 
                regarding habitability of such housing, units, 
                facilities, or shelters that provide protection to 
                residents of the dwellings that is equal to or greater 
                than the protection provided under the housing quality 
                standards established under paragraph (3), such 
                applicable laws, regulations, standards, or codes; or
                  ``(B) in the case of permanent housing, a unit, 
                facility, or shelter located in a jurisdiction which 
                does not have in effect laws, regulations, standards, 
                or codes described in subparagraph (A), the housing 
                quality standards established under paragraph (3).
          ``(3) Federal housing quality standards.--The Secretary shall 
        establish housing quality standards under this paragraph that 
        ensure that permanent housing, dwelling units, supportive 
        housing facilities, and emergency shelters assisted under this 
        title are safe, clean, and healthy. Such standards shall 
        include requirements relating to habitability, including 
        maintenance, health and sanitation factors, condition, and 
        construction of dwellings. The Secretary shall differentiate 
        between major and minor violations of such standards and may 
        establish separate standards for permanent housing, dwelling 
        units, supportive housing facilities, and emergency shelters.
  ``(i) Termination of Assistance.--If a person or family (not 
including residents of an emergency shelter) who receives assistance 
under this title violates program requirements, the project sponsor may 
terminate assistance in accordance with a formal process established by 
such sponsor that recognizes the rights of individuals receiving such 
assistance to due process of law, which may include a hearing.
  ``(j) Use Restrictions.--
          ``(1) Acquisition, rehabilitation, and new construction.--
                  ``(A) In general.--Except as provided in subparagraph 
                (B), each housing facility assisted under subtitle B or 
                subtitle C shall be operated as housing for the purpose 
                specified in the application for assistance with 
                amounts under this title for not less than 20 years 
                after such facility is initially placed in service 
                pursuant to such assistance.
                  ``(B) Exceptions.--
                          (i) Inability to operate facility.--If, 
                        within such 20-year period, the need for 
                        maintaining the facility as housing for the 
                        purpose specified in the application for 
                        assistance ceases to exist (as determined by 
                        the Secretary pursuant to a recommendation by 
                        the chief executive officer of the appropriate 
                        unit of general local government or project 
                        sponsor, taking into consideration the 
                        comprehensive housing affordability strategy of 
                        the jurisdiction), or the project sponsor is 
                        unable to operate the facility as supportive 
                        housing, the facility may be used as affordable 
                        housing (in accordance with section 215 of the 
                        Cranston-Gonzalez National Affordable Housing 
                        Act).
                          ``(ii)  Applicability of other program 
                        restriction.--If the housing facility receives 
                        assistance under any other Federal program 
                        (including assistance under section 42 of the 
                        Internal Revenue Code of 1986) for low-income 
                        families, homeless person, or any other use 
                        consistent with assistance under this title, 
                        and the use restriction under such program is 
                        less than 20 years, the restriction under such 
                        program shall apply.
          ``(2) Other assistance.--Each housing facility assisted under 
        subtitle C shall be operated for the purposes specified in the 
        application for assistance with amounts under this title for 
        the duration of the period covered by the grant.
          ``(3) Conversion.--Notwithstanding paragraphs (1) and (2), if 
        the Secretary determines that a housing facility is no longer 
        needed for use as housing for the purposes specified in the 
        application for assistance and approves the use of the facility 
        for the direct benefit of low-income persons pursuant to a 
        request for such use by the project sponsor, the Secretary may 
        authorize the sponsor to convert the facility to such use.
  ``(k) Repayment of Assistance and Prevention of Undue Benefits.--
          ``(1) Repayment.--If a facility assisted under subtitle B or 
        subtitle C violates the requirement under subsection (j)(1)(A) 
        or (j)(1)(B)(ii) of this section during the 10-year period 
        beginning upon placement of the facility in service pursuant to 
        such assistance, the Secretary shall require the grantee to 
        repayto the Secretary 100 percent of any grant amounts received 
for such facility under such paragraph. If such a facility violates 
such requirement after such 10-year period, the Secretary shall require 
the grantee to repay the percentage of any grant amounts received for 
such facility that is equal to 100 percent minus 10 percentage points 
for each year in excess of 10 that the facility is operated as 
supportive housing.
          ``(2) Prevention of undue benefits.--Except as provided in 
        paragraph (3), upon any sale or other disposition of a facility 
        assisted under subtitle B or C occurring before the expiration 
        of the 20-year period beginning on the date that the facility 
        is placed in service, the project sponsor shall comply with 
        such terms and conditions as the Secretary may prescribe to 
        prevent the sponsor from unduly benefiting from such sale or 
        disposition.
          ``(3) Exception.--Paragraphs (1) and (2) shall not apply to 
        any sale or disposition of a facility that results in the use 
        of the facility for the direct benefit of very low-income 
        families if all of the proceeds are used to provide housing 
        meeting the requirements of subtitle B or C.
          ``(4) Failure to obtain site.--If a grantee of assistance 
        made available for use under this title obligates assistance 
        for a housing facility other than a facility under section 
        421(a)(3) or housing that will eventually be owned or 
        controlled by the families and individuals served, and the 
        project sponsor fails to obtain ownership or control of a 
        suitable site for a proposed supportive housing facility during 
        the 12-month period beginning upon the notification of an award 
        of grant assistance, the grantee shall recapture the assistance 
        and make such assistance available under this subtitle.
  ``(l) Local Boards.--
          ``(1) Establishment and function.--The head of the executive 
        branch of government of each grantee shall establish and 
        appoint members to a local board, which shall assist the 
        jurisdiction in--
                  ``(A) determining whether the grant should be 
                administered by the jurisdiction, a public agency, a 
                private nonprofit organization, the State, or the 
                Secretary;
                  ``(B) developing the application under section 408;
                  ``(C) overseeing the activities carried out with 
                assistance under this title; and
                  ``(D) preparing the performance report under section 
                431.
          ``(2) Composition of local boards.--
                  ``(A) Nomination.--Members of a local board appointed 
                to meet the requirements of subparagraph (D) shall be 
                nominated by persons, other than governmental officials 
                or entities, that represent the groups listed in 
                subparagraph (D).
                  ``(B) Priority.--Persons who will improve access to a 
                broad range of services for homeless persons and who 
                are sensitive to the varying needs of homeless persons, 
                including veterans, the mentally ill, families with 
                children, young persons, battered spouses, victims of 
                substance abuse, and persons with AIDS, shall be given 
                preference when selecting local board members.
                  ``(C) Community support considered.--In appointing 
                members to the local board, the chief executive of each 
                grantee shall consider the extent of support for the 
                nominee in the community which the board shall serve.
                  ``(D) Majority.--Not less than 51 percent of the 
                members of a local board shall be composed of--
                          ``(i) homeless or formerly homeless persons;
                          ``(ii) persons who act as advocates for 
                        homeless persons; and
                          ``(iii) persons who provide assistance to 
                        homeless persons, including representatives of 
                        local veterans organizations and veteran 
                        service providers who assist homeless veterans.
                  ``(E) Other local board members.--After the 
                requirements of subparagraph (D) are met, other members 
                of a local board shall be chosen from--
                          ``(i) members of the business community of 
                        the jurisdiction receiving the grant;
                          ``(ii) members of neighborhood advocates in 
                        the jurisdiction receiving the grant; and
                          ``(iii) government officials of the 
                        jurisdiction receiving the grant.
          ``(3) Waiver of requirements for local board.--The Secretary 
        may waive the requirements of this subsection if the 
        jurisdiction has an existing board that substantially meets the 
        requirements of this subsection.
  ``(m) Coordination of Homeless Programs.--
          ``(1) Purpose.--The purpose of the consultation and 
        coordination required under this subsection is to provide 
        various services, activities, and assistance for homeless 
        persons and families in an efficient, effective, and targeted 
        manner designed to meet the comprehensive needs of the 
        homeless.
          ``(2) In general.--The Chairperson of the Interagency Council 
        on the Homeless shall consult and coordinate with the Secretary 
        of Housing and Urban Development, the Secretary of Health and 
        Human Services, the Secretary of Labor, the Secretary of 
        Education, the Secretary of Veterans Affairs, and the Secretary 
        of Agriculture and shall ensure that assistance for federally 
        funded activities for the homeless is made available, to the 
        greatest extent practicable, in conjunction and coordination 
        with assistance for other federally funded activities for the 
        homeless and with assistance under this title.
          ``(3) Requirements for housing assistance.--The Secretary 
        shall establish such requirements as the Secretary considers 
        necessary to ensure that grant amounts provided under this 
        title are used by grantees and project sponsors, to the 
        greatest extent practicable, in coordination and in conjunction 
        with federally funded activities for the homeless.
          ``(4) Definition.--For purposes of this subsection, the term 
        `federally funded activities for the homeless' means activities 
        to assist homeless persons, including homeless veterans, or 
        homeless families that are funded (in whole or in part) with 
        amounts provided by the Federal Government (other than amounts 
        provided under this title) and includes--
                  ``(A) the programs for health care under sections 340 
                and part C of title V of the Public Health Service Act;
                  ``(B) the programs for education, training and 
                community services under title VII of the Stewart B. 
                McKinney Homeless Assistance Act;
                  ``(C) food assistance for homeless persons and 
                families through the food programs under the Food Stamp 
                Act of 1977 and the Emergency Food Assistance Act of 
                1983;
                  ``(D) the job training, housing, and medical programs 
                for homeless veterans of the Department of Veterans 
                Affairs;
                  ``(E) the job corps centers for homeless families 
                program under section 433A of the Job Training 
                Partnership Act;
                  ``(F) the program for preventive services for 
                children of homeless families or families at risk of 
                homelessness under title III of the Child Abuse 
                Prevention and Treatment Act;
                  ``(G) the programs under the Runaway and Homeless 
                Youth Act; and
                  ``(H) assistance for homeless persons, including 
                homeless veterans, and families under State programs 
                funded under supplemental security income programs 
                under part A of title IV or under title XVI of the 
                Social Security Act.
          ``(5) Companion services block grants in cases of failure to 
        comply.--
                  ``(A) In general.--If, for any fiscal year, the 
                Chairperson of the Interagency Council on the Homeless 
                determines that adequate coordination has not taken 
                place to ensure that assistance for federally funded 
                activities for the homeless is made available in 
                conjunction and coordination with assistance under this 
                title (as required under paragraph (2)), the 
                Chairperson of the Interagency Council on the Homeless 
                and the Secretary, in consultation with the Interagency 
                Council on the Homeless, shall carry out a program 
                under subparagraph (B) to make companion services block 
                grants available for such fiscal year.
                  ``(B) Companion service block grants.--The block 
                grant program under this subparagraph shall provide 
                block grants, using amounts available pursuant to 
                subparagraph (C), to eligible grantees under this title 
                to provide services of the type available under the 
                programs referred to in paragraph (4) in connection 
                with housing assistance under this title.
                  ``(C) Funding.--
                          ``(i) In general.--Notwithstanding any other 
                        provision of law, in any fiscal year in which 
                        block grants are to be provided in accordance 
                        with subparagraph (A), there shall be available 
                        for such block grants, of the amount made 
                        available for such fiscal year for each 
                        activity referred to in paragraph (4), 10 
                        percent of such amount, as determined by the 
                        Secretary and the Interagency Council on the 
                        Homeless.
                          ``(ii) Limitation.--Notwithstanding clause 
                        (i), the aggregate amount available for 
                        companion services block grants under this 
                        paragraph for a fiscal year shall not exceed 
                        the total amount made available pursuant to 
                        section 435 for housing assistance under this 
                        title. If, for any fiscal year, the amount 
                        determined under clause (i) exceeds such 
                        amount,the Secretary shall reduce the 
percentage under clause (i) for such year so that the aggregate amount 
made available for companion services block grants under this paragraph 
from the amounts for each activity referred to in paragraph (4) is 
equal to the total amount made available pursuant to section 435 for 
housing assistance under this title.
                  ``(D) Transfer authority.--Except to the extent that 
                the authority of the Secretary and the Chairperson of 
                the Interagency Council on the Homeless is limited by 
                appropriations, and with the concurrence of the head of 
                the affected agency and upon advance approval of the 
                Committees on Appropriations and the authorizing 
                committees of the House of Representatives, and the 
                Senate, the Secretary and the Chairperson of the 
                Interagency Council on the Homeless shall transfer 
                funds made available under subparagraph (C) to the 
                companion services block grant for federally funded 
                activities, functions, or programs for the homeless.
                  ``(E) Report.--Not later than the first quarter of 
                the first full fiscal year after the date of the 
                enactment of the Homeless Housing Programs 
                Consolidation and Flexibility Act and each quarter 
                thereafter, the Secretary and the Chairperson of the 
                Interagency Council on the Homeless shall report to 
                Congress on--
                          ``(i) the need for any reprogramming or 
                        transfer of funds appropriated for federally 
                        funded activities, functions, or programs for 
                        the homeless; and
                          ``(ii) any funds appropriated for federally 
                        funded activities, functions, or programs for 
                        the homeless that were reprogrammed or 
                        transferred during the quarter covered by the 
                        report.
  ``(n) Consultation Regarding Use of National Guard Facilities as 
Homeless Shelters.--The Secretary may not provide a grant for a fiscal 
year from amounts for such year allocated under section 406(c) for use 
under subtitle C for a State unless the State has, consulted with the 
Secretary regarding the possibility of making any space at National 
Guard facilities under the jurisdiction of the State available, during 
such fiscal year, for use by homeless organizations to provide shelter 
to homeless persons, but only at the times that such space is not 
actively being used for National Guard purposes or other public 
purposes already undertaken.

``SEC. 409. SUPPORTIVE SERVICES.

  ``(a) Requirement.--To the extent allowed by this title, each project 
sponsor administering permanent housing development assistance provided 
with amounts under this title or a supportive housing facility or 
emergency shelter assisted with such amounts shall provide supportive 
services for residents of the dwelling units or facility or shelter 
assisted. The array of supportive services provided may be designed by 
the grantee or the project sponsor administering the assistance, 
facility, or shelter. A project sponsor administering a supportive 
housing facility shall provide supportive services for other homeless 
persons using the facility.
  ``(b) Targeting Populations With Special Needs.--Supportive services 
provided with grant amounts under this title shall address the special 
needs of homeless persons (such as homeless persons with disabilities, 
homeless persons with acquired immunodeficiency syndrome and related 
diseases, homeless persons who have chronic problems with alcohol or 
drugs (or both), veterans who are homeless, and homeless families with 
children) intended to be served.
  ``(c) Services.--Supportive services may include activities such as--
          ``(1) establishing and operating a child care services 
        program for homeless families;
          ``(2) establishing and operating an employment assistance 
        program;
          ``(3) providing outpatient health services, food, and case 
        management;
          ``(4) providing assistance in obtaining permanent housing, 
        employment counseling, and nutritional counseling;
          ``(5) providing security arrangements necessary for the 
        protection of residents of supportive housing or emergency 
        shelters and for homeless persons using supportive housing 
        facilities;
          ``(6) providing assistance in obtaining other Federal, State, 
        and local assistance available for such residents and persons 
        (including mental health benefits, employment counseling, and 
        medical assistance, but not including major medical equipment); 
        and
          ``(7) providing other appropriate services.
  ``(d) Provision of Services.--Supportive services provided with grant 
amounts under this title may be provided directly by the grantee, by 
the project sponsor administering the permanent housing development 
assistance or the facility or shelter, or by contract with other public 
or private service providers. Such services provided in connection with 
a supportive housing facility may be provided to homeless persons who 
do not reside in the supportive housing, but only to the extent 
consistent with the comprehensive housing affordability strategy under 
section 105 of the Cranston-Gonzalez National Affordable Housing Act 
for the applicable jurisdiction.

``SEC. 410. NONDISCRIMINATION IN PROGRAMS AND ACTIVITIES.

  No person in the United States shall on the basis of race, color, 
national origin, religion, or sex be excluded from participation in, be 
denied the benefits of, or be subjected to discrimination under any 
program or activity funded in whole or in part with funds made 
available under this subtitle. Any prohibition against discrimination 
on the basis of age under the Age Discrimination Act of 1975 or with 
respect to an otherwise qualified handicapped individual, as provided 
in section 504 of the Rehabilitation Act of 1973, shall also apply to 
any such program or activity.

         ``Subtitle B--Permanent Housing Development Activities

``SEC. 411. USE OF AMOUNTS AND GENERAL REQUIREMENTS.

  ``(a) Use of Amounts for Permanent Housing Development.--
          ``(1) Authorized use.--A State, metropolitan city, or urban 
        county that receives a grant under section 402(b)(2) from 
        amounts allocated for use under this subtitle may use grant 
        amounts (and any supplemental amounts provided under section 
        407) only to carry out permanent housing development activities 
        within such State, metropolitan city, or urban county. For 
        purposes of this subtitle, the term `permanent housing 
        development activities' means activities to construct, 
        substantially rehabilitate, or acquire structures to provide 
        permanent housing, including the capitalization of a dedicated 
        project account from which long-term assistance payments (which 
        may include operating costs or rental assistance) can be made 
        in order to facilitate such activities, and activities under 
        section 441 of the Stewart B. McKinney Homeless Assistance Act, 
        as in effect on October 31, 1997 (subject to the limitation in 
        section 406(b)(3) of this Act).
          ``(2) Use for supportive services prohibited.--Amounts 
        allocated for use under this subtitle may not be used for 
        supportive services activities.
  ``(b) Use Through Nonprofit Organizations.--
          ``(1) In general.--A grantee that receives grant amounts for 
        a fiscal year for use under this subtitle may, pursuant to 
        section 404, provide such amounts to units of general local 
        government and private nonprofit organizations for use in 
        accordance with this subtitle, except that the grantee shall 
        ensure that more than 50 percent of the amounts received by the 
        grantee for the fiscal year are used through private nonprofit 
        organizations.
          ``(2) Waiver of use of nonprofit requirement.--The Secretary 
        may waive the requirement under paragraph (1) that a grantee 
        ensure that more than 50 percent of the amounts received by the 
        grantee for the fiscal year are used through private nonprofit 
        organizations if the Secretary determines that there are not 
        sufficient private nonprofit organizations available to the 
        grantee to meet that requirement.
  ``(c) Administrative Fee.--To the extent provided in section 408(g), 
grant amounts provided under this subtitle may be used by the project 
sponsor providing such assistance for costs of administering such 
assistance.
  ``(d) Targeting Populations With Special Needs.--To the maximum 
extent practicable, a grantee shall provide for use of grant amounts 
made available under this subtitle in a manner that provides permanent 
housing for homeless persons with disabilities, homeless persons with 
acquired immunodeficiency syndrome or related diseases, homeless 
persons who have chronic problems with alcohol or drugs (or both), 
homeless families with children, and veterans who are homeless.

``SEC. 412. PERMANENT HOUSING DEVELOPMENT.

  ``(a) In General.--Housing shall be considered permanent housing for 
purposes of this title if the housing--
          ``(1) provides long-term housing for homeless persons;
          ``(2) complies with any applicable State and local housing 
        codes, licensing requirements, or other requirement in the 
        jurisdiction in which the housing is located, including any 
        applicable State or local requirements regarding the number of 
        occupants in such a facility; and
          ``(3) complies with the requirement under section 409(a) 
        regarding providing supportive services for homeless persons.
  ``(b) Clarification.--Permanent housing may--
          ``(1) be restricted for occupancy by homeless persons with 
        disabilities;
          ``(2) consist of or contain full dwelling units or dwelling 
        units that do not contain bathrooms or kitchen facilities; and
          ``(3) be provided in the form of rental housing, cooperative 
        housing, shared living arrangements, single family housing, or 
        other types of housing arrangements.

         ``Subtitle C--Flexible Block Grant Homeless Assistance

``SEC. 421. ELIGIBLE ACTIVITIES.

  ``(a) In General.--Grant amounts allocated for use under this 
subtitle may be used only for carrying out the following activities:
          ``(1) Acquisition and rehabilitation of supportive housing.--
        For acquisition or rehabilitation of an existing structure 
        (including a small commercial property or office space) to 
        provide supportive housing other than emergency shelter or to 
        provide supportive services; the repayment of any outstanding 
        debt owed on a loan made to purchase an existing structure for 
        use as supportive housing shall be considered to be a cost of 
        acquisition under this paragraph if the structure was not used 
        as supportive housing or to provide supportive services, before 
        assistance is provided using grant amounts.
          ``(2) New construction of supportive housing.--For new 
        construction of a structure to be used as supportive housing.
          ``(3) Leasing of supportive housing.--For leasing of an 
        existing structure or structures, or portions thereof, to 
        provide supportive housing or supportive services during the 
        period covered by the application.
          ``(4) Operating costs for supportive housing.--For covering 
        operating costs of supportive housing (which shall include 
        capital costs for utilizing any interactive computer or 
        telephone services and other electronic information networks 
        and systems appropriate for assisting homeless families); 
        except that grant amounts provided under this subtitle may not 
        be used to cover more than 75 percent of the annual operating 
        costs of such housing.
          ``(5) Homelessness prevention.--
                  ``(A) In general.--For activities designed to help 
                persons (including veterans who are at risk of becoming 
                homeless, and families avoid becoming homeless), which 
                shall include assistance for making mortgage payments, 
                rental payments, and utility payments and any 
                activities other than those found by the Secretary to 
                be inconsistent with the purposes of this Act.
                  ``(B) Persons eligible for assistance.--Assistance 
                under this paragraph may be provided only to very low-
                income families who have received eviction (or mortgage 
                delinquency or foreclosure) notices or notices of 
                termination of utility services and who--
                          ``(i) are unable to make the required 
                        payments due to a sudden reduction in income;
                          ``(ii) need such assistance to avoid 
                        homelessness due to the eviction or termination 
                        of services; and
                          ``(iii) have a reasonable prospect of being 
                        able to resume payments within a reasonable 
                        period of time.
                  ``(C) Limitation.--Assistance under this paragraph 
                may be provided only if such assistance will not 
                supplant funding for preexisting homelessness 
                prevention activities from other services.
          ``(6) Permanent housing development activities.--For 
        providing permanent housing development activities as described 
        in subtitle B.
          ``(7) Emergency shelter.--For--
                  ``(A) renovation, major rehabilitation, or conversion 
                of a building or buildings to be used as emergency 
                shelters;
                  ``(B) covering costs of supportive services in 
                connection with an emergency shelter, if such services 
                do not supplant any services provided by the local 
                government during any part of the 12-month period 
                ending on the date of the commencement of the operation 
                of the emergency shelter; and
                  ``(C) covering costs relating to maintenance, 
                operation, insurance, utilities, and furnishings for 
                emergency shelters.
          ``(8) Supportive services.--To the extent provided in section 
        406, for covering costs of supportive services provided to 
        homeless persons in connection with a permanent or supportive 
        housing facility or otherwise.
          ``(9) Technical assistance.--For technical assistance in 
        carrying out the purposes of this title, except that the 
        Secretary may provide such technical assistance directly to any 
        grantee, including nonprofit sponsors who are proposing project 
        applications for populations with special needs.
  ``(b) Use for Housing Activities.--Of the aggregate of any grant 
amounts provided to a grantee for a fiscal year for use under this 
subtitle and the supplemental amounts provided for such fiscal year by 
the grantee in accordance with section 407, the grantee shall ensure 
that an amount that is not less than such grant amounts (less any 
amount used pursuant to section 408(g)) is used for eligible activities 
described in paragraphs (1) through (6) of subsection (a).

``SEC. 422. USE OF AMOUNTS THROUGH PRIVATE NONPROFIT PROVIDERS.

  ``(a) In General.--In each fiscal year, each grantee of amounts for 
use under this subtitle shall ensure that more than 50 percent of the 
amounts received by the grantee for such fiscal year are used for 
carrying out eligible activities under section 421 through project 
sponsors that are private nonprofit organizations.
  ``(b) Waiver.--The Secretary may waive the requirement under 
subsection (a) that a grantee ensure that more than 50 percent of the 
amounts received by the grantee for the fiscal year are used through 
private nonprofit organizations if the Secretary determines that there 
are not sufficient private nonprofit organizations available to the 
grantee to meet that requirement.

``SEC. 423. SUPPORTIVE HOUSING.

  ``(a) In General.--Housing shall be considered supportive housing for 
purposes of this subtitle if--
          ``(1) the housing complies with the requirement under section 
        409(a) regarding providing supportive services for homeless 
        persons;
          ``(2) the housing complies with any applicable State and 
        local housing codes and licensing requirements in the 
        jurisdiction in which the housing is located; and
          ``(3) the housing--
                  ``(A) is transitional housing; or
                  ``(B) is permanent supportive housing as described in 
                section 412.
  ``(b) Transitional Housing.--For purposes of this section, the term 
`transitional housing' means housing, the purpose of which is to 
facilitate the movement of homeless persons and families to permanent 
housing within 24 months or such longer period as the Secretary 
determines necessary. Assistance may be denied for housing based on a 
violation of this subsection only if a substantial number of homeless 
persons or families have remained in the housing longer than such 
period.
  ``(c) Single Room Occupancy Dwellings.--For purposes of this section, 
a facility may provide supportive housing or supportive services in 
dwelling units that do not contain bathrooms or kitchen facilities and 
are appropriate for use as supportive housing or in facilities 
containing some or all such dwelling units.
  ``(d) Safe Haven Housing.--For purposes of this section, supportive 
housing may be a structure or a clearly identifiable portion of a 
structure that--
                  ``(A) provides housing and low-demand services and 
                referrals for homeless individual with serious mental 
                illness--
                          ``(i) who are currently residing primarily in 
                        places not designed for, or ordinarily used as, 
                        a regular sleeping accommodation for human 
                        beings; and
                          ``(ii) who have been unwilling or unable to 
                        participate in mental health or substance abuse 
                        treatment programs or to receive other 
                        supportive services; except that a person whose 
                        sole impairment is substance abuse shall not be 
                        considered an eligible person;
                  ``(B) provides 24-hour residence for eligible 
                individuals who may reside for an unspecified duration;
                  ``(C) provides private or semi-private 
                accommodations;
                  ``(D) may provide for the common use of kitchen 
                facilities, dining rooms, and bathrooms;
                  ``(E) may provide supportive services to eligible 
                persons who are not residents on a drop-in basis; and
                  ``(F) provides occupancy limited to no more than 25 
                persons.

``SEC. 424. EMERGENCY SHELTER.

  ``(a) In General.--A facility shall be considered emergency shelter 
for purposes of this subtitle if the facility is designed to provide 
overnight sleeping accommodations for homeless persons and complies 
with the requirements under this section. An emergency shelter may 
include appropriate eating and cooking accommodations.
  ``(b) Requirements.--Grant amounts under this subtitle may be used 
for eligible activities under section 421(a)(7) relating to emergency 
shelter only if--
          ``(1) the Secretary determines that--
                  ``(A) use of such amounts is necessary to meet the 
                emergency shelter needs of the jurisdiction in which 
                the facility is located; and
                  ``(B) the use of such amounts for such activities 
                will not violate the prohibition under section 408(f); 
                and
          ``(2) the project sponsor agrees that it will--
                  ``(A) in the case of assistance involving major 
                rehabilitation or conversion of a building, maintain 
                the building as a shelter for homeless persons and 
                families for not less than a 10-year period unless, 
                within such 10-year period, the need for maintaining 
                the building as a full-time shelter ceases to exist and 
                the building is used for the remainder of such period 
                to carry out other eligible activities under this 
                subtitle;
                  ``(B) in the case of assistance involving 
                rehabilitation (other than major rehabilitation or 
                conversion of a building), maintain the building as a 
                shelter for homeless persons and families for not less 
                than a 3-year period;
                  ``(C) in the case of assistance involving only 
                activities described in subparagraphs (B) and (C) of 
                section 421(a)(7), provide services or shelter to 
                homeless persons and families at the original site or 
                structure or other sites or structures serving the same 
                general population for the period during which such 
                assistance is provided;
                  ``(D) comply with the standards of housing quality 
                applicable under section 408(h); and
                  ``(E) assist homeless persons in obtaining--
                          ``(i) appropriate supportive services, 
                        including permanent housing, medical and mental 
                        health treatment (including information and 
                        counseling regarding the benefits and 
                        availability of child immunization), 
                        counseling, supervision, veterans benefits, and 
                        other services essential for achieving 
                        independent living; and
                          ``(ii) other Federal, State, local, and 
                        private assistance available for homeless 
                        persons.

           ``Subtitle D--Reporting, Definitions, and Funding

``SEC. 431. PERFORMANCE REPORTS BY GRANTEES.

  ``(a) Requirement.--For each fiscal year, each grantee under this 
title shall review and report, in a form acceptable to the Secretary, 
on the progress it has made during such fiscal year in carrying out the 
activities described in the application resulting in such grant and the 
relationship of such activities to the comprehensive housing 
affordability strategy under section 105 of the Cranston-Gonzalez 
National Affordable Housing Act for the applicable jurisdiction.
  ``(b) Content.--Each report under this section for a fiscal year 
shall--
          ``(1) describe the use of grant amounts provided to the 
        grantee for such fiscal year;
          ``(2) to the extent practicable until the development of a 
        reasonable methodology by the Secretary and the Interagency 
        Council on the Homeless, describe the number of homeless 
        persons and families, including populations with special needs 
        provided shelter, housing, or assistance using such grant 
        amounts;
          ``(3) assess the relationship of such use to the goals 
        identified pursuant to section 105(b)(2) of the Cranston-
        Gonzalez National Affordable Housing Act in the comprehensive 
        housing affordability strategy for the applicable jurisdiction;
          ``(4) indicate the grantee's programmatic accomplishments;
          ``(5) describe how the grantee would change its programs as a 
        result of its experiences; and
          ``(6) describe any delays that occurred in the start up of 
        programs and the reason for each delay.
  ``(c) Submission.--The Secretary shall establish dates for submission 
of reports under this section and review such reports and make such 
recommendations as the Secretary considers appropriate to carry out the 
purposes of this title. The Secretary may withhold or reallocate funds 
granted to a grantee if the Secretary finds that the grantee has 
complied with applicable program requirements, but not substantially 
complied with the application that the grantee submitted to obtain such 
funds.
  ``(d) Public Availability.--
          ``(1) In general.--A grantee preparing a report under this 
        section shall make the report publicly available to the 
        citizens in the jurisdiction of the grantee in sufficient time 
        to permit such citizens to comment on such report prior to its 
        submission to the Secretary, and in such manner and at such 
        times as the grantee may determine. The report shall include a 
        summary of any such comments received by the grantee regarding 
        its program.
          ``(2) Electronic access.--A grantee may comply with the 
        requirement under paragraph (1) by making the report available 
        through interactive computer or telephone services or other 
        electronic information networks and systems appropriate for 
        making such information widely publicly available. The 
        Secretary shall make each final report submitted under this 
        section publicly available through such a computer, telephone, 
        or information service, network, or system.
  ``(e) Authority of secretary.--The Secretary shall establish 
procedures appropriate and practicable for providing a fair hearing and 
timely resolution of citizen complaints related to performance reports 
under this section.

``SEC. 432. ANNUAL REPORT BY SECRETARY.

  ``The Secretary shall include in the annual report, under section 8 
of the Department of Housing and Urban Development Act, information 
summarizing the activities carried out under this title and setting 
forth the findings, conclusions, and recommendations of the Secretary 
as a result of the activities. Such information shall be made publicly 
available through interactive computer or telephone services or other 
electronic information networks and systems appropriate for making such 
information widely available to the public.

``SEC. 433. DEFINITIONS.

  ``For purposes of this title, the following definitions shall apply:
          ``(1) Applicant.--The term `applicant' means an eligible 
        grantee that submits an application under section 408(a) for a 
        grant under this title.
          ``(2) Eligible grantee.--The term `eligible grantee' is 
        defined in section 403.
          ``(3) Facility.--The term `facility' means a structure or 
        structures (or a portion of such structure or structures) that 
        are assisted through eligible activities under subtitle C with 
        grant amounts under this title (or for which the Secretary 
        provides technical assistance under section 421(a)(9)).
          ``(4) Grantee.--The term `grantee' means an applicant that 
        receives a grant under this title.
          ``(5) Insular area.--The term `insular area' means each of 
        the Virgin Islands, Guam, American Samoa, the Northern Mariana 
        Islands, and any other territory or possession of the United 
        States.
          ``(6) Metropolitan city, urban county, and unit of general 
        local government.--The terms `metropolitan city', `urban 
        county', and `unit of general local government' have the 
        meanings given the terms in section 102 of the Housing and 
        Community Development Act of 1974.
          ``(7) Nonentitlement area.--The term `nonentitlement area' 
        means an area that is not a metropolitan city or part of an 
        urban county and does not include Indian tribes or insular 
        areas.
          ``(8) Operating costs.--The term `operating costs' means 
        expenses incurred by a grantee operating supportive housing 
        assisted with grant amounts under this title, with respect to--
                  ``(A) the administration, maintenance, repair, and 
                security of such housing;
                  ``(B) utilities, fuel, furnishings, and equipment for 
                such housing; and
                  ``(C) the conducting of the assessment under section 
                408(b)(2).
          ``(9) Outpatient health services.--The term `outpatient 
        health services' means outpatient health care, outpatient 
        mental health services, outpatient substance abuse services, 
        and case management.
          ``(10) Person with disabilities.--The term `person with 
        disabilities' means a person who--
                  ``(A) has a disability as defined in section 223 of 
                the Social Security Act;
                  ``(B) is determined to have, pursuant to regulations 
                issued by the Secretary, a physical, mental, or 
                emotional impairment which (i) is expected to be of 
                long-continued and indefinite duration, (ii) 
                substantially impedes an individual's ability to live 
                independently, and (iii) is of such a nature that such 
                ability could be improved by more suitable housing 
                conditions; or
                  ``(C) has a developmental disability as defined in 
                section 102 of the Developmental Disabilities 
                Assistance and Bill of Rights Act.
        Such term shall not exclude persons who have the disease of 
        acquired immunodeficiency syndrome or any conditions arising 
        from the etiologic agent for acquired immunodeficiency 
        syndrome.
          ``(11) Private nonprofit organization.--The term `private 
        nonprofit organization' means any private organization that--
                  ``(A) is organized under State or local laws;
                  ``(B) has no part of its net earnings inuring to the 
                benefit of any member, founder, contributor, or 
                individual;
                  ``(C) complies with standards of financial 
                accountability acceptable to the Secretary; and
                  ``(D) has among its purposes significant activities 
                related to the provision of--
                          ``(i) decent housing that is affordable to 
                        low-income and moderate-income families; or
                          ``(ii) shelter, housing, or services for 
                        homeless persons or families or for persons or 
                        families at risk of becoming homeless.
          ``(12) Project sponsor.--The term `project sponsor' means an 
        entity that uses grant amounts under this title to carry out a 
        permanent housing development program under subtitle B or 
        eligible activities under subtitle C. The term includes a 
        grantee carrying out such a program or activities.
          ``(13) Secretary.--The term `Secretary' means the Secretary 
        of Housing and Urban Development.
          ``(14) State.--The term `State' means each of the several 
        States and the Commonwealth of Puerto Rico.
          ``(15) Supportive housing.--The term `supportive housing' 
        means a facility that meets the requirements of section 423.
          ``(16) Supportive services.--The term `supportive services' 
        means services under section 409.
          ``(17) Very low-income families.--The term `very low-income 
        families' has the same meaning given the term under section 
        3(b) of the United States Housing Act of 1937 (or any other 
        subsequent provision of Federal law defining such term for 
        purposes of eligibility for, or rental charges in, public 
        housing).

``SEC. 434. REGULATIONS.

  ``(a) Issuance.--Not later than the expiration of the 30-day period 
beginning upon the date of the enactment of the Homeless Housing 
Programs Consolidation and Flexibility Act, the Secretary shall issue 
interim regulations to carry out this title. The Secretary shall issue 
final regulations to carry out this title after notice and opportunity 
for public comment regarding the interim regulations in accordance with 
the procedure under section 553 of title 5, United States Code, 
applicable to substantive rules (notwithstanding subsections (a)(2), 
(b)(B), and (d)(3) of such section), but not later than the expiration 
of the 90-day period beginning upon the date of the enactment of the 
Homeless Housing Programs Consolidation and Flexibility Act.
  ``(b) Rule of Construction.--Any failure by the Secretary to issue 
any regulations under this section shall not affect the effectiveness 
of any provision of this title pursuant to section 4(b) of the Homeless 
Housing Programs Consolidation and Flexibility Act.

``SEC. 435. AUTHORIZATION OF APPROPRIATIONS.

  ``(a) In General.--There are authorized to be appropriated for grants 
under this title $1,000,000,000 for each of fiscal years 1998, 1999, 
2000, 2001, and 2002.
  ``(b) Prohibition on Set Asides.--Notwithstanding any other provision 
of law, any attempt to put any restriction on the use of funds 
appropriated for this title (such as for use in special projects) shall 
be considered an appropriation without authorization and shall be 
without force or effect.''.
  (b) Applicability.--The provisions of the amendment made by 
subsection (a) shall apply with respect to fiscal year 1998 and each 
fiscal year thereafter.

SEC. 6. INTERAGENCY COUNCIL ON THE HOMELESS.

  (a) Chairperson and Vice Chairperson.--Section 202(b) of the Stewart 
B. McKinney Homeless Assistance Act (42 U.S.C. 11312(b) is amended to 
read as follows:
  ``(b) Chairperson and Vice Chairperson.--
          ``(1) Chairperson.--The Council shall elect a Chairperson 
        from among its members, who shall have a term of 2 years. A 
        member of the Council by reason of any of paragraphs (1) 
        through (16) of subsection (a) who serves as Chairperson for a 
        term may not be elected to serve as Chairperson for the 
        succeeding term. The preceding sentence shall not apply to any 
        member serving as Chairperson on the date of the enactment of 
        the Homeless Housing Programs Consolidation and Flexibility 
        Act.
          ``(2) Vice chairperson.--The Vice Chairperson of the Council 
        shall have a term of 2 years and shall be--
                  ``(A) the Secretary of Housing and Urban Development, 
                if such Secretary is not elected as the Chairperson of 
                the Council; or
                  ``(B) elected by the Council from among its members, 
                if the Secretary of Housing and Urban Development is 
                elected as the Chairperson of the Council.
          ``(3) Notwithstanding paragraphs (1) and (2), the first 
        Chairperson elected after the date of the enactment of the 
        Homeless Housing Programs Consolidation and Flexibility Act may 
        not be the Secretary of Housing and Urban Development.''.
  (b) Authorization of Appropriations.--Section 208 of the Stewart B. 
McKinney Homeless Assistance Act (42 U.S.C. 11318) is amended to read 
as follows:

``SEC. 208. AUTHORIZATION OF APPROPRIATIONS.

  ``Of any amounts made available in any fiscal year to carry out this 
Act, 0.0012 of such amounts shall be available to carry out this 
title.''.
  (c) Termination.--Section 209 of the Stewart B. McKinney Homeless 
Assistance Act (42 U.S.C. 11319) is amended by striking ``October 1, 
1994'' and inserting ``October 1, 2002''.
  (d) Repeal.--Section 210 of the Stewart B. McKinney Homeless 
Assistance Act (42 U.S.C. 11320) is hereby repealed.

SEC. 7. INVENTORY OF FEDERAL FACILITIES SUITABLE FOR OVERNIGHT SHELTER 
                    FOR HOMELESS PERSONS.

  (a) Identification.--Not later than 30 days after the date of the 
enactment of this Act, the Secretary of Housing and Urban Development 
shall request, from the head of each executive agency, information that 
identifies each covered facility (or any parts thereof) under the 
control of the executive agency that is suitable for use as temporary 
overnight shelter for homeless persons.
  (b) Consultation.--At the request of the head of any executive 
agency, the Secretary shall consult with such agency head regarding 
whether facilities of the agency, or a particular facility or 
facilities, are covered facilities or are suitable for use as temporary 
overnight shelter for homeless persons.
  (c) Compilation and Publication.--Not later than 60 days after the 
date of the enactment of this Act, the Secretary shall compile the 
information submitted pursuant to subsection (a) and cause the compiled 
information to be published in the Federal Register a list of all 
covered facilities identified as suitable for use as temporary 
overnight shelter for homeless persons.
  (d) Definitions.--For purposes of this section, the following 
definitions shall apply:
          (1) Covered facility.--The term ``covered facility'' means 
        any building, structure, land, or other real property that, in 
        the determination of the head of the Federal agency having 
        control of the property, using standards that shall be 
        established by the Secretary, reasonably could be made 
        available for the use described in subsection (a) without 
        substantial conflict with any other existing, expected, or 
        potential use of the property to carry out the mission of the 
        agency.
          (2) Executive agency.--The term ``executive agency'' has the 
        meaning given such term in section 105 of title 5, United 
        States Code.
          (3) Homeless person.--The term ``homeless person'' has the 
        meaning given such term in section 102 of the Stewart B. 
        McKinney Homeless Assistance Act (42 U.S.C. 11302).
          (4) Secretary.--The term ``Secretary'' means the Secretary of 
        Housing and Urban Development.

SEC. 8. REPEALS AND CONFORMING AMENDMENTS.

  (a) Repeals.--The following provisions of law are hereby repealed:
          (1) Innovative homeless initiatives demonstration.--Section 2 
        of the HUD Demonstration Act of 1993 (42 U.S.C. 11301 note).
          (2) FHA single family property disposition for homeless 
        use.--Section 1407 of the Housing and Community Development Act 
        of 1992 (Public Law 102-550; 106 Stat. 4034).
          (3) Housing for rural homeless and migrant farmworkers.--
        Subsection (k) of section 516 of the Housing Act of 1949 (42 
        U.S.C. 1486(k)).
  (b) Termination of SRO Assistance Program.--Section 8(e)(2) of the 
United States Housing Act of 1937 shall not be in effect on or after 
the date of the enactment of this Act as provided in subsections (a)(4) 
and (b)(2) of section 289 of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12839).
  (c) Conforming Amendments to Youthbuild Program.--Title IV of the 
Cranston-Gonzalez National Affordable Housing Act is amended--
          (1) in section 455(b) (42 U.S.C. 12899d(b)) by inserting 
        ``subtitle C of'' before ``title IV''; and
          (2) in section 457(4) (42 U.S.C. 12899f(4)), by striking 
        ``section 103'' and inserting ``section 102''.
  (d) Clerical Amendment.--The table of contents in section 101(b) of 
the Stewart B. McKinney Homeless Assistance Act is amended by striking 
the items relating to titles I, II, III, and IV (including the items 
relating to the subtitles, parts, and sections of such titles) and 
inserting the following new items:

                     ``TITLE I--GENERAL PROVISIONS

``Sec. 101. Short title and table of contents.
``Sec. 102. General definition of homeless individual.
``Sec. 103. Funding availability and limitations.
``Sec. 104. Annual program summary by Comptroller General.

            ``TITLE II--INTERAGENCY COUNCIL ON THE HOMELESS

``Sec. 201. Establishment.
``Sec. 202. Membership.
``Sec. 203. Functions.
``Sec. 204. Director and staff.
``Sec. 205. Powers.
``Sec. 206. Transfer of functions.
``Sec. 207. Definitions.
``Sec. 208. Authorization of appropriations.
``Sec. 209. Termination.

   ``TITLE III--FEDERAL EMERGENCY MANAGEMENT FOOD AND SHELTER PROGRAM

                ``Subtitle A--Administrative Provisions

``Sec. 301. Emergency Food and Shelter Program National Board.
``Sec. 302. Local boards.
``Sec. 303. Role of Federal Emergency Management Agency.
``Sec. 304. Records and audit of National Board and grantees of 
assistance.
``Sec. 305. Annual report.

            ``Subtitle B--Emergency Food and Shelter Grants

``Sec. 311. Grants by the Director.
``Sec. 312. Retention of interest earned.
``Sec. 313. Purposes of grants.
``Sec. 314. Limitation on certain costs.
``Sec. 315. Disbursement of funds.
``Sec. 316. Program guidelines.

                    ``Subtitle C--General Provisions

``Sec. 321. Definitions.
``Sec. 322. Authorization of appropriations.

  ``TITLE IV--PERMANENT HOUSING DEVELOPMENT AND FLEXIBLE BLOCK GRANT 
                      HOMELESS ASSISTANCE PROGRAM

                    ``Subtitle A--General Provisions

``Sec. 401. Purpose; performance measures.
``Sec. 402. Grant authority.
``Sec. 403. Eligible grantees.
``Sec. 404. Use of project sponsors.
``Sec. 405. Comprehensive housing affordability strategy compliance.
``Sec. 406. Allocation and availability of amounts.
``Sec. 407. Matching funds requirement.
``Sec. 408. Program requirements.
``Sec. 409. Supportive services.
``Sec. 410. Nondiscrimination in programs and activities.

         ``Subtitle B--Permanent Housing Development Activities

``Sec. 411. Use of amounts and general requirements.
``Sec. 412. Permanent housing development.

         ``Subtitle C--Flexible Block Grant Homeless Assistance

``Sec. 421. Eligible activities.
``Sec. 422. Use of amounts through private nonprofit providers.
``Sec. 423. Supportive housing.
``Sec. 424. Emergency shelter.

           ``Subtitle D--Reporting, Definitions, and Funding

``Sec. 431. Performance reports by grantees.
``Sec. 432. Annual report by Secretary.
``Sec. 433. Definitions.
``Sec. 434. Regulations.
``Sec. 435. Authorization of appropriations.''.

SEC. 9. SAVINGS PROVISION.

  Nothing in this Act may be construed to affect the validity of any 
right, duty, or obligation of the United States or other person arising 
under or pursuant to any commitment or agreement entered into before 
the date of the enactment of this Act under any provision of law 
repealed or amended by this Act.

SEC. 10. TREATMENT OF PREVIOUSLY OBLIGATED AMOUNTS.

  Notwithstanding the amendment or repeal of any provision of law by 
this Act, any amounts appropriated to carry out the provisions so 
amended or repealed that are obligated before the date of the enactment 
of this Act shall be used in the manner provided, and subject to any 
requirements and agreements entered into, under such provisions as such 
provisions were in effect immediately before such date of enactment.

                     Explanation of the Legislation

    The ``Homeless Housing Programs Consolidation and 
Flexibility Act''--H.R. 217, consolidates seven existing Title 
IV Stewart B. McKinney Homeless Housing Assistance Programs. 
These programs include: Emergency Shelter Grants Program (ESG); 
Supportive Housing Program; Safe Havens for Homeless 
Individuals Demonstration Program; Shelter Plus Care Program; 
Section 8 Moderate Rehabilitation Assistance for Single-Room 
Occupancy Dwellings; Rural Homeless Housing Assistance; and 
Tenant/Project-Based Rental Assistance.
    H.R. 217 provides for a homeless housing assistance block 
grant divided into two assistance funds: (1) Flexible Block 
Grant (initial 75% of total funds appropriated) allocated 
between municipalities (70%) and to the states (30%) to provide 
homeless housing assistance; and (2) Permanent Housing 
Development, allocated by national competition. After the first 
year of enactment, the Permanent Housing Development national 
competition would be allocated 30% of the total appropriated 
funds under this title, with the remaining appropriated funds 
allocated through the flexible block grant.
    The bill requires HUD to develop and submit to Congress an 
allocation formula, based on the incidence of homelessness and 
other contributing factors, one year after enactment. Although 
the legislation contemplated an allocation for the Flexible 
Block Grant at 70% for entitlement communities and 30% for 
states, HUD will be required to provide alternative allocations 
between city and state communities, including the possibility 
of a 75% entitlement/25% state formula. An interim block grant 
will immediately take effect, based on the existing emergency 
shelter grant program formula.
    While the Committee agrees that McKinney funds are more 
equitably allocated under a formula, it recognizes that a 
number of urban localities may lose a substantial amount of 
their McKinney funds under the interim formula (CDBG formula). 
In order to provide those localities time to adjust to a 
formula driven program, the bill also authorizes a ``hold-
harmless'' provision. Under the hold-harmless provision, 
communities and states would be guaranteed 90% of the average 
of annual funds the jurisdiction received during the 1994-97 
fiscal years. Additionally, each state entity (non-entitlement) 
is guaranteed a minimum of $2 million. (The hold-harmless 
provision changes each year with 85% in year two; 80% in years 
three and four; and 75% in year five.) After each community and 
state is allocated the minimum amount, jurisdictions that would 
receive more funding under an ESG formula allocation will 
receive additional funding based on the remaining funds and the 
difference between the communities guaranteed amount and amount 
it would have received under the formula.
    H.R. 217 provides a block grant to states and local 
communities (entitlement areas) to provide funds for eligible 
activities, including providing supportive housing with 
appropriate services, acquisition or rehabilitation of housing 
structures, leasing, operating costs, prevention, emergency 
shelter, supportive services, and permanent housing 
development.
    In recognition of the fact that homelessness is not 
isolated in urban areas alone, the Committee restricts States 
from using their formula-allocated funds in entitlement areas. 
The Committee is concerned that states, historically, have 
directed their Emergency Shelter Grant allocation into the 
entitlement communities and neglect the needs of the homeless 
in rural and non-metro areas. Certainly, the Committee 
understands that the large proportion of this nation's homeless 
needs are in the metro areas but it would like state's funds 
directed at finding solutions to non-metro and rural 
homelessness.
    The legislation maintains a national competition for the 
permanent housing activities, such as construction, 
rehabilitation, or acquisition. These activities can also 
include the capitalization of a dedicated project amount from 
which long-term assistance payments, such as operating costs or 
rental assistance, can be made. In addition, the Committee 
agreed to allow up to 35% of the funds available for the 
competition to be used as if under Section 441 of the McKinney 
Act as in effect on October 31, 1997.
    The legislation requires eligible grantees, defined as the 
municipal city, urban county, consortium of local governments, 
or state governments, to apply for the flexible block grant or 
the permanent housing fund competition, provided each entity's 
application is consistent with the Comprehensive Housing 
Affordability strategy, prepared by each jurisdiction under 
Section 105 of the Cranston-Gonzalez National Affordable 
Housing Act.
    A condition of the grantee's application is that federal 
funds be matched with other non-McKinney housing funds. Each 
grantee shall select either (1) a 50% match of federal funds, 
provided volunteer hours are not calculated as part of the 
contribution; or (2) a 100% match of federal funds, which 
includes the value of volunteer hours, as calculated and 
regulated by HUD. Sources for matching funds can be cash; the 
value of donated or purchased materials or buildings; the value 
of leases; proceeds from municipal bond financing; the amount 
of salary paid to staff; value or cost of donated goods; value 
of taxes, fees or other charges foregone by the local 
government; cost of on-site and off-site infrastructure; and, 
in cases of a 100% match, donated services. Match requirements 
for communities in fiscal distress or severe fiscal distress 
may be waived partially or totally by the Secretary.
    The bill provides an incentive to limit supportive service 
expenditures of federal funds to no more than 35%. In cases 
where the grantee exceeds 35%, it must contribute an additional 
100% match of federal funds spent above the threshold. The 
Committee opted to allow total local flexibility related to the 
amount of funds spent on emergency shelter.
    This legislation requires each grantee to establish local 
advisory boards, consisting of representatives of the various 
local homeless advocacy groups, current or former homeless 
individuals, representatives from veteran advocacy groups, 
business and other community leaders, as appointed by the head 
of the jurisdiction. These local boards are designed to ensure 
that localities work with non-profit groups in providing the 
best possible coordination and leveraging of resources and 
services.
    This legislation also requires interagency coordination to 
ensure that executive agencies, other than HUD, provide 
adequate federal assistance for supportive services to 
supplement and accompany the McKinney Housing Assistance 
program. First, the Interagency Council on the Homeless is 
reauthorized, including an authorization of appropriations. 
Second, the legislation encourages interagency participation, 
by requiring the first elected chairman after enactment to be a 
Secretary other than the HUD Secretary. Third, the Council 
would have the authority to provide coordination activities to 
ensure that supportive service funds come from non-HUD 
executive agencies. When the coordination is not sufficient, 
the Chairman could create a Companion Services Block Grant from 
the various federal block grants where homeless services are 
eligible activities. The legislation would require pro-rated 
funds from the affected agencies up to an amount equal to the 
appropriated funds for the HUD McKinney Assistance program.
    Under the Flexible Block Grant or the Permanent Housing 
Development earmark, grantees are required to pass-through at 
least 50% of funds to non-profits, which meet eligibility 
requirements established by the HUD Secretary and the local 
jurisdiction.
    In addition to providing performance measures, the 
legislation also requires performance reports by the grantees, 
in a form established by the Secretary, that provide 
information regarding the activities, accomplishments, 
experiences, numbers served, and goals met under the 
Comprehensive Housing Affordability Strategy. The application 
and performance reports will be public information and made 
available, including through the Internet or other electronic 
systems.
    H.R. 217 authorizes an appropriation of $1 billion for each 
fiscal year through Fiscal Year 2002 for Title IV McKinney 
Housing Assistance funds. Additionally, an authorization of 
appropriation for the Federal Emergency Management Agency 
(FEMA) Emergency Food and Shelter (EFS) program is effective 
through Fiscal Year 2002.
    This legislation also requires each executive agency head 
to provide an inventory, no later than 30 days after enactment, 
of federal facilities under its authority that would be 
suitable for use as temporary, overnight shelters for homeless 
persons.

                                Overview

    In the late 1970s, homelessness was again evident in our 
nation's urban areas with the appearance of ``bag ladies'' and 
homeless encampments, and is now widely recognized as one of 
our nation's most pressing social dilemmas. Until the late 
1980s, homelessness was viewed as a temporary phenomenon that 
could be remedied by directing federal, state and local funding 
resources to emergency food and shelter programs. While 
important in addressing immediate crisis needs, these programs 
have not provided long-term solutionsto the special needs of 
vulnerable individuals who are homeless or at risk of homelessness.
    At least half of the adult homeless population is estimated 
to have a current or past substance abuse problem, and up to 
one-third have severe mental illness. As a consequence of their 
mental and physical disabilities and their isolation from 
community and family support systems, many of these individuals 
get caught in a costly revolving door from shelters, to the 
streets, to hospital emergency rooms, to treatment centers, 
sometimes even to jails, and back again. For more than a 
decade, locally-based nonprofit housing organizations and 
social service agencies have pioneered cost-effective solutions 
to homelessness that combine permanent, affordable housing with 
supportive services. This approach is helpful for vulnerable 
individuals who are homeless or at risk of homelessness, 
especially those who are coping with mental illness, substance 
abuse recovery, HIV/AIDS and/or other special needs, to regain 
control of their lives and reclaim a stake in community life.
    The Federal government's most comprehensive response to the 
crisis of homelessness emerged in the 1980s in the form of the 
Stewart B. McKinney Act of 1987 (P.L. 100-77). The McKinney Act 
was reauthorized for two years at the end of the 100th Congress 
as the McKinney Homeless Assistance Act Amendments of 1988, and 
was subsequently reauthorized again in the Cranston-Gonzalez 
National Affordable Housing Act and the Housing and Community 
Development Act of 1992.

                  Background and Need for Legislation

    H.R. 217 consolidates most McKinney programs into a 
flexible block grant, in order to provide comprehensive 
community-wide planning with a defined flow of federal funds 
and support over the long-term. This legislation was created to 
provide greater flexibility to states and local governments. In 
testimony before the Subcommittee on Housing and Community 
Opportunity, witnesses from both the private and public sector 
spoke to the theme of flexibility in addressing local 
homelessness needs. Under the current system, statutory 
fragmentation of homeless housing activities creates mixed 
signals and ties the housing and service providers' hands. 
Therefore, the Flexible Block Grant Homeless Assistance Program 
would not only ensure a consistency of funds but the necessary 
flexibility.
    The Committee specifically chose not to consolidate 
permanent housing activities into the flexible block grant. 
Instead, the Committee earmarked funds for permanent housing 
development under a national competitive process. Although the 
Administration had originally proposed a total block grant of 
homeless funds in order to reduce administrative burdens, the 
Committee believed that a narrowly tailored national 
competitive program would refocus a portion of the funds on 
``bricks & mortar'' development and not pose an administrative 
burden on HUD. Additionally, the national competitive fund 
would give each grantee or local jurisdiction an opportunity to 
compete for additional funds beyond the block grant formula, 
meeting the needs of innovative projects requiring significant 
financial investments. Given the ebb and flow of funding needs 
for permanent housing development, communities may need large 
funding amounts in one year and little or nothing in other 
years. If permanent housing funds were allocated under a block 
grant, many entitlement jurisdictions would not build permanent 
housing projects because the immense up-front funding needs 
would deplete a jurisdiction's entire allocation in one funding 
year. A national competition that assures projects are tied to 
local needs will facilitate a more effective allocation of 
housing resources.
    Because the homeless problem was thought to be temporary in 
nature, the McKinney Programs originally emphasized emergency 
food and shelter and transitional housing, along with a range 
of services such as primary health care, mental health care, 
education, and job training. As the crisis of homelessness 
continued to intensify, federal policy shifted in recognition 
of the need to support long-term and preventative strategies 
that enabled vulnerable populations to gain access to 
affordable, permanent housing and ongoing services, which help 
them to lead independent, productive lives.
    Our nation's experience in combating homelessness has shown 
that without a stable, long-term living environment, most truly 
needy individuals are not able to take advantage of services 
that could help them cope with their debilitating mental and 
physical disabilities. The Committee believes that directing 
scarce public resources towards expanding the availability of 
quick-fix programs, such as emergency shelters, is not 
effective. When there is a lack of alternative permanent 
housing options, shelters become long-term human warehouses, 
and transitional programs are forced to graduate residents back 
to the streets, where the cycle begins again. In light of these 
conclusions, the McKinney Act programs have been refined over 
the past several years to direct significant resources to 
permanent housing.
    Since the creation of the separate McKinney programs, there 
has been increasing pressure to provide supportive services, 
which tend to assist homeless persons with difficult and 
complex problems. Although McKinney housing funds were 
originally developed for housing assistance, HUD has 
increasingly awarded these funds for supportive service 
activities, instead of coordinating with other executive branch 
agencies, such as HHS, Labor, Education, and Veterans Affairs. 
Some observers estimate up to 51% of housing funds have been 
used for supportive services. While the Committee understands 
that a successful homeless program requires both housing and 
services, it recognized that appropriate interagency 
coordination has not occurred.
    Finally, the Committee recognized that, in some cases, 
homelessness among Veterans requires additional review, 
including ``veteran-specific'' causes of homelessness, in order 
to maximize rehabilitation and coordination with other veterans 
programs. Therefore, the Committee ensured that: (1) veteran 
homeless persons would be considered ``special needs'' 
populations, which must be considered in the development of 
HUD's comprehensive planning at all levels; (2) HUD would 
coordinate with other executive branch agencies for planning 
services for homeless veterans; (3) state or local advisory 
planning boards would have representation from veterans service 
organizations and providers with specific expertise in 
providing services to homeless veterans; and, (4) in both the 
pre-grant application process and the post-grant reporting 
process, data on homeless veterans would be collected.
    The pre-grant application should include an assessment of 
the needs of ``special needs'' populations, efforts to identify 
the existence or absence of other resources available in the 
community to meet those needs, and objectives to address unmet 
needs. Furthermore, the Secretary, in consultation with the 
Interagency Council on the Homeless, veterans advocacy groups, 
and other advocacy groups, shall develop a methodology to 
gather aggregate data on special populations. The Committee 
expects this methodology to be completed within eighteen months 
after enactment. Also, the Committee requested that the 
Secretary make efforts to limit the administrative burdens to 
grantees and protect the privacy of individuals while 
collecting data. This legislation provides that grantees 
include the methodology developed by the Secretary in their 
performance report.
    Some key findings about permanent solutions to combat 
homelessness include:
          When provided with stable, permanent housing and 
        flexible support services, formerly homeless persons 
        with severe mental illness greatly decrease their use 
        of costly acute psychiatric hospital care and emergency 
        room treatment;
          When provided with permanent supportive housing, 
        graduates of chemical dependency treatment programs 
        greatly increase their rates of sobriety;
          The Stewart B. McKinney Programs fund the development 
        and operation of service-enriched housing for 
        vulnerable, special needs populations that have 
        achieved positive cost-effective results in ending or 
        preventing a recurrence of homelessness;
          McKinney Program funds play an important role in 
        leveraging funding from other state, local and private 
        sector sources;
          A heavy reliance on supportive services funding 
        detracts from the program's ability to provide more 
        housing development;
          While the McKinney Programs have achieved positive 
        outcomes, program consolidation and simplification are 
        necessary to better support local efforts.

                        Constitutional Authority

    In compliance with clause 2(l)(4) of rule XI of the Rules 
of the House of Representatives, the Constitutional authority 
for Congress to enact this legislation is derived from the 
general welfare clause (Article I, Sec. 8).

                                Hearings

    The Subcommittee on Housing and Community Opportunity held 
two hearings on the ``Homeless Housing Programs Consolidation 
and Flexibility Act''.
    The first hearing was held on March 5, 1997. Testifying 
before the Subcommittee were: E. Fuller Torrey, M.D., Research 
Psychiatrist at the Neuroscience Center of the National 
Institute of Health in Bethesda, Maryland; Brendan O'Flaherty, 
Ph.D., Associate Professor of Economics at Columbia University 
in New York, N.Y.; Martha Burt, Ph.D., Principal Research 
Associate at The Urban Institute in Washington, D.C.; and 
Dennis Culhane, Ph.D., Associate Professor of social welfare 
policy at the University of Pennsylvania in Philadelphia.
    The second hearing was held on June 26, 1997. Testifying 
before the Subcommittee were: The Honorable Jack Metcalf, a 
Representative in Congress from the State of Washington; The 
Honorable Bruce F. Vento, a Representative in Congress from the 
State of Minnesota; Mr. Erik P. Butler, President of The Pine 
Street Inn, Boston, MA; Ms. Maria Foscarinis, Executive 
Director of the National Law Center on Homelessness and 
Poverty, Washington, D.C.; Ms. Mary Ann Gleason, Executive 
Director, National Coalition for the Homeless, Washington, 
D.C.; Ms. Jane M. Kenny, Commissioner of the New Jersey 
Department of Community Affairs; Ms. Jacquie Lawing, General 
Deputy Assistant Secretary for Community Planning and 
Development, HUD; Mr. Philip F. Mangano, Executive Director, 
Massachusetts Housing and Shelter Alliance, Boston, MA; Mr. 
George McDonald, Founder and President, The Doe Fund, New York, 
N.Y.; Mr. Richard McMillen, President, International Union of 
Gospel Missions, Kansas City, MO and Executive Director of The 
Water Street Rescue Mission in Lancaster, PA; Ms. Nan Roman, 
Vice President for Policy and Programs of the National Alliance 
to End Homelessness, Washington, D.C.; Ms. Julie Sandorf, 
President of the Corporation for Supportive Housing, New York, 
N.Y.; Ms. Shelley Sheehy, Executive Committee Member and 
Secretary of the Iowa Coalition for Housing and the Homeless, 
Davenport, IA; and Ms. Sally Shipman, Executive Director of the 
Coalition for the Homeless of Housing/ Harris County, Inc., 
Houston, TX.

     Committee Consideration and Votes (Rule XI, Clause 2(l)(2)(b))

    The Committee met in open session to mark up H.R. 217, 
``Homeless Housing Programs Consolidation and Flexibility 
Act,'' on November 5, 1997. The Committee considered, as 
original text for purposes of amendments, a Committee Print 
which incorporated the provisions of H.R. 217 introduced by Mr. 
Lazio.
    During the markup, the Committee approved 6 amendments 
(including a Manager's Amendment) by voice vote. The Committee 
defeated one amendment by voice vote. The Committee approved, 
by recorded voice vote, one amendment to the Committee Print. 
The Committee also defeated, by recorded vote, two amendments. 
Pursuant to the provisions of clause 2(l)(2)(b) of rule XI of 
the House of Representatives, the results of each role call 
vote and the motion to report, together with the names of those 
voting for and those voting against, are printed below:

                             ROLLCALL NO. 1

    Date: November 5, 1997.
    Measure: Homeless Housing Programs Consolidation and 
Flexibility Act
    Motion by: Mr. Sanders
    Description of motion: Increases funding authorization 
levels to $1.6 billion.
    Results: Defeated 14 to 18.
        YEAS                          NAYS
Mr. Campbell                        Mr. Leach
Mr. LaFalce                         Mr. McCollum
Mr. Vento                           Mrs. Roukema
Mr. Frank                           Mr. Baker
Mr. Sanders                         Mr. Lazio
Mrs. Maloney                        Mr. Lucas
Mr. Gutierrez                       Mr. Metcalf
Ms. Roybal-Allard                   Mr. Ney
Mr. Barrett                         Mr. Barr
Ms. Velazquez                       Mrs. Kelly
Mr. Watt                            Dr. Paul
Mr. Maloney                         Dr. Weldon
Ms. Hooley                          Mr. Ryun
Ms. Carson                          Mr. Snowbarger
                                    Mr. Hill
                                    Mr. Manzullo
                                    Mr. Foley
                                    Mr. Redmond

                             ROLLCALL NO. 2

    Date: November 5, 1997
    Measure: Homeless Housing Programs Consolidation and 
Flexibility Act
    Motion by: Mr. Campbell
    Description of motion: Provides that a condition of 
receiving federal grants is the State's consulting with the HUD 
Secretary regarding space available at National Guard 
facilities that could be used by homeless organizations to 
provide shelter to homeless persons. Directs HUD to conduct an 
inventory of federal facilities suitable for emergency shelter 
for homeless persons and publish it in the Federal Register 
within 60 days after enactment of this Act.
    Results: Passed 31 to 5 to 1.

                                                                                                                
                  YEAS                                  NAYS                                  PASS              
                                                                                                                
Mr. Leach                             Mr. Ney                               Mr. Vento                           
Mr. McCollum                          Mr. Barr                              ....................................
Mrs. Roukema                          Mr. Hill                              ....................................
Mr. Bereuter                          Mr. LaFalce                           ....................................
Mr. Baker                             Ms. Carson                            ....................................
Mr. Lazio                             ....................................  ....................................
Mr. Castle                            ....................................  ....................................
Mr. Campbell                          ....................................  ....................................
Mr. Lucas                             ....................................  ....................................
Mr. Metcalf                           ....................................  ....................................
Dr. Paul                              ....................................  ....................................
Mr. Ryun                              ....................................  ....................................
Mr. Snowbarger                        ....................................  ....................................
Mr. Manzullo                          ....................................  ....................................
Mr. Foley                             ....................................  ....................................
Mr. Redmond                           ....................................  ....................................
Mr. Kennedy                           ....................................  ....................................
Ms. Waters                            ....................................  ....................................
Mr. Sanders                           ....................................  ....................................
Mrs. Maloney                          ....................................  ....................................
Mr. Gutierrez                         ....................................  ....................................
Ms. Roybal-Allard                     ....................................  ....................................
Mr. Barrett                           ....................................  ....................................
Ms. Velazquez                         ....................................  ....................................
Mr. Watt                              ....................................  ....................................
Mr. Bentsen                           ....................................  ....................................
Ms. Kilpatrick                        ....................................  ....................................
Mr. Maloney                           ....................................  ....................................
Ms. Hooley                            ....................................  ....................................
Mr. Weygard                           ....................................  ....................................
Mr. Sherman                           ....................................  ....................................
                                                                                                                

                             ROLLCALL NO. 3

    Date: November 5, 1997.
    Measure: Homeless Housing Programs Consolidation and 
Flexibility Act.
    Motion by: Mr. Ryun.
    Description of motion: Lowers funding authorization levels 
to $850 million.
    Results: Defeated 10 to 26 to 1.

                                                                                                                
                  YEAS                                  NAYS                                  PASS              
                                                                                                                
Mr. McCollum                          Mr. Leach                             Mr. Metcalf                         
Mr. Bereuter                          Mrs. Roukema                                                              
Mr. Royce                             Mr. Lazio                                                                 
Mr. Luca                              Mr. Castle                                                                
Mr. Barr                              Mr. Campbell                                                              
Dr. Paul                              Mr. Ney                                                                   
Mr. Ryun                              Mr. Hill                                                                  
Mr. Snowbarger                        Mr. Foley                                                                 
Mr. Manzullo                          Mr. LaFalce                                                               
Mr. Redmond                           Mr. Vento                                                                 
                                      Mr. Kennedy                                                               
                                      Ms. Waters                                                                
                                      Mr. Sanders                                                               
                                      Mrs. Maloney                                                              
                                      Mr. Gutierrez                                                             
                                      Ms. Roybal-Allard                                                         
                                      Mr. Barrett                                                               
                                      Ms. Velazquez                                                             
                                      Mr. Watt                                                                  
                                      Mr. Bentsen                                                               
                                      Ms. Kilpatrick                                                            
                                      Mr. Maloney                                                               
                                      Ms. Hooley                                                                
                                      Ms. Carson                                                                
                                      Mr. Weygand                                                               
                                      Mr. Sherman                                                               
                                                                                                                

    The Committee Print was adopted as amended by recorded vote 
as follows:

                             ROLLCALL NO. 4

    Date: November 5, 1997.
    Measure: Homeless Housing Programs Consolidation and 
Flexibility Act.
    Motion by: Mr. Lazio.
    Description of motion: Allows committee print as a 
substitute to H.R. 217 as introduced in the House.
    Results: Passed 35 to 5.
        YEAS                          NAYS
Mr. Leach                           Mr. Royce
Mr. McCollum                        Mr. Barr
Mrs. Roukema                        Dr. Paul
Mr. Bereuter                        Mr. Ryun
Mr. Lazio                           Mr. Snowbarger
Mr. Castle
Mr. Campbell
Mr. Lucas
Mr. Metcalf
Mr. Ney
Mr. Ehrlich
Dr. Weldon
Mr. Cook
Mr. Hill
Mr. Manzullo
Mr. Foley
Mr. Redmond
Mr. LaFalce
Mr. Vento
Mr. Kennedy
Ms. Waters
Mr. Sanders
Mrs. Maloney
Mr. Gutierrez
Ms. Roybal-Allard
Mr. Barrett
Ms. Velazquez
Mr. Watt
Mr. Bentsen
Ms. Kilpatrick
Mr. Maloney
Ms. Hooley
Ms. Carson
Mr. Weygand
Mr. Sherman

    A motion to strike everything after the enacting clause in 
H.R. 217 and insert in lieu thereof the Committee Print as 
amended, was approved by voice vote. A motion to adopt and 
favorably report H.R. 217 as amended to the House and authorize 
the Chairman to make any technical or conforming amendments was 
approved by voice vote.

                      Committee Oversight Findings

    In compliance with clause 2(l)(3)(A) of rule XI of the 
Rules of the House of Representatives, the Committee reports 
that the findings and recommendations of the Committee, based 
on oversight activities under clause 2(b)(l) of rule X of the 
Rules of the House of Representatives, are incorporated in the 
descriptive portions of this report.

               New Budget Authority and Tax Expenditures

    Clause 2(l)(3)(B) of rule XI of the Rules of the House of 
Representatives is inapplicable because this legislation does 
not provide new budgetary authority for increased tax 
expenditures.

               Congressional Budget Office Cost Estimates

    The cost estimate pursuant to Clause 2(l)(3)(C) of rule XI, 
of the Rules of the House of Representatives and Section 403 of 
the Congressional Budget Act of 1974 has been requested, but 
had not been prepared as of this report. The estimate will be 
included in a supplement to this report to be filed at a future 
date.

                      Advisory Committee Statement

    No advisory committees within the meaning of Section 5(b) 
of the Federal Advisory Committee were created by this 
legislation.

                    Congressional Accountability Act

    The reporting requirement under Section 102(b)(3) of the 
Congressional Accountability Act (P.L. 104-1) is inapplicable 
because this legislation does not relate to terms and 
conditions of employment or access to public services or 
accommodations.

       Congressional Budget Office Federal Mandate Cost Estimate

    The cost estimate pursuant to Section 424 of the Unfunded 
Mandates Reform Act (P.L. 104-4) has been requested, but had 
not been prepared as of the filing of this report. The estimate 
will be filed in a supplement to this report to be filed at a 
future date.

                           Section-by-Section

Sec. 1  Short Title

    ``Homeless Housing Programs Consolidation and Flexibility 
Act.''

Sec. 2  Finding's; purposes

    Provides findings and purposes to consolidate homeless 
programs and allow for greater flexibility while moving towards 
a greater emphasis on permanent housing solutions.

Sec. 3  General provisions

    Provides technical amendments to Title I of the Stewart B. 
McKinney Homeless Assistance Act.

Sec. 4  Federal Emergency Management Agency Food and Shelter Program

    Extends authorization of the emergency and shelter program 
under FEMA through the end of FY2002.

Sec. 5  Permanent Housing Development and Flexible Block Grant Homeless 
        Assistance Program

    Amends and rewrites Title IV of the Stewart B. McKinney 
Homeless Assistance Act.

Sec. 401  Purpose; performance standards

    Provides purpose and performance standards consistent with 
the Government Performance and Results Act of 1993.

Sec. 402  Grant authority

    Provides Secretary with authority to make grants for the 
following: (1) Insular Areas, (2) Permanent Housing Development 
Fund, and (3) Flexible Block Grant Homeless Assistance.

Sec. 403  Eligible grantees

    Defines grantees as (1) Insular Areas, (2) state and local 
municipal governments or designated entity, and (3) a 
consortium of units of local governments, including the entire 
state.

Sec. 404  Use of project sponsor

    Provides grantee authority to use grant amounts through 
project sponsors who would manage projects qualified under 
eligible activities provided sponsor is fiscally responsible, 
has demonstrated ability to carry out eligible activity, 
leverages public and private resources and coordination, meets 
cost effectiveness, and employs homeless persons, among others.

Sec. 405  Comprehensive housing affordability strategy compliance

    Requires grantee to submit comprehensive housing strategy 
already required under the 1990 Sec. 105 of the National 
Affordable Housing Act (NAHA) and requires the local public 
official to certify that homeless activities are consistent 
with strategy. This section also authorizes the Secretary to 
establish other requirements, in addition to the CHAS, which 
could include the consolidated plan requirements established by 
HUD regulations.

Sec. 406  Allocation and availability of amounts

    Provides for division of appropriated amounts in three 
ways: (1) Insular Areas as determined by current and future 
formula; (2) Permanent Housing Development Grants/Subtitle B 
with a 25% earmark; and (3) Flexible Block Grant Homeless 
Assistance Grant/Subtitle C with a 75% earmark allocated by the 
Emergency Shelter Grant (ESG) Formula currently under Sec. 
106(b) of the Housing and Community Development Act of 1974. 
After the first year of enactment, the Permanent Housing 
Development grant allocation would increase to 30% and the 
Flexible Block Grant Homeless Assistance would decrease to 70%. 
The HUD Secretary is required to provide a new formula for 
Congress' approval, based or calculated on the incidence of 
homelessness and other contributing factors, as well as 
allocation alternatives. Until the new formula is adopted, the 
ESG formula is effective. HUD is required to provide an 
estimate of each entitlement community or non-entitlement area 
allocation under each formula suggested.
    Under the Permanent Housing Development Grant program, this 
section provides a funding limitation equal to 35% of the total 
allocated under this grant program for activities under Section 
441 of the Stewart B. McKinney Homeless Assistance Act as in 
effect on October 31, 1997. This activity is authorized under 
Section 411(a)(1) of this Act.
    Under the Flexible Block Grant approach, 30% of funds are 
earmarked for the states and 70% of funds are earmarked for the 
localities or entitlement communities. A hold harmless 
provision is effective until a new formula or allocation is 
adopted. Each entitlement community and non-entitlement area 
would, in the first year, be guaranteed 90% of the average of 
the communities past 4 year allocation (FY94-FY97) under this 
Act's predecessor programs; 85% for the second year, 80% for 
the third and fourth year, and 75% for the fifth year of 
enactment. Each grantee is required to provide an additional 
match (at 50%) for all McKinney funds expended for supportive 
services above or exceeding a 30% threshold. Funds may be 
reallocated at least once a year if unused or provided the 
grantee fails to submit or comply with the local housing 
strategy plan.
    A $750 million threshold is required to provide a block 
grant. Otherwise, any appropriated amounts below the threshold 
will automatically trigger a competitive program for all the 
McKinney funds for that fiscal year.

Sec. 407  Matching funds requirement

    Requires each grantee to match McKinney Fund grants with an 
option of either:
          (a) at least 50% of the McKinney Fund grants when 
        donated services (voluntary hours) are not included; 
        or,
          (b) 100% of the McKinney Fund grant amounts when 
        donated services (voluntary hours) are included.
    The match for either option can include cash; value of any 
donated or purchased material or building; value of any lease 
on a building; bond proceeds; salary paid to staff to carry-out 
eligible activities; cost or value of any donated goods; value 
of taxes, fees, or other charges foregone or waived; and on-
site/off-site infrastructure costs. The Secretary is authorized 
to reduce the match requirement for grantees under fiscal or 
severe fiscal distress or located in a declared natural 
disaster area.
    State or local government funds allocated to eligible 
activities, independent and separate from McKinney Funds, would 
also qualify as part of the match.

Sec. 408  Program requirements

    Authorizes Secretary to require grantees to make 
applications for grant assistance for permanent housing fund 
and flexible block grant assistance fund, with application 
requirements and agreements by the grantee to allow monitoring 
and meet program requirements. Additionally, grantees are 
allowed to charge each resident/client up to 30% of adjusted 
income, which may be reserved or used to assist the resident in 
moving to public housing.
    Citizen participation is provided by requiring each grantee 
to allow for public review and comment and at least one public 
forum or meeting. Electronic access to information is also 
required.
    Grantees are required to have at least one current or 
former homeless person on the grantees' board or policymaking 
entity if feasible; otherwise, the Secretary may waive this 
requirement where impractical.
    Grant funds may not be used to replace other funds 
currently used for homeless services. Administrative expenses 
are limited to 5% of total grant received or 7.5% where the 
grantee implements and uses a standardized homeless database 
management system to record and assess data on the usage of 
homeless housing, services and client needs. Housing quality 
standards must meet local and state housing code requirements; 
in its absence, the Secretary is authorized to implement 
standards.
    Project Sponsors or grantees may terminate assistance to 
any person or family who violates program requirements so long 
as the affected adverse party receives appropriate due process.
    Developments acquired, rehabilitated or constructed under 
this Act will be required to provide homeless housing for at 
least 20 years unless the Secretary determines that the current 
homeless program is no longer viable or needed. In that case, 
the property may be used for low-income affordable housing. In 
cases where the Low-Income Housing Tax Credit or other Federal 
program provides a building/use restriction less than 20 years, 
then that lower requirement shall apply.
    Each grantee is required to provide for a local advisory 
board that will provide advice, assistance and comments on the 
development of the application and the performance review. 
Members are to be appointed by the head of the local or state 
entity and reflect a cross-section of residents including the 
homeless, homeless advocates and service providers, the 
business community, neighborhood advocates and government 
officials. The Secretary may waive the local board requirement 
where the grantee meets this requirement through existing 
boards or groups.

Sec. 408(m)  Coordination of Homeless Programs

    This subsection provides the Chairperson of the Interagency 
Council on the Homeless to coordinate with the Secretary of 
HUD, HHS, Labor, Education, Veterans Affairs, and Agriculture, 
the services that would compliment the McKinney housing fund. 
The HUD Secretary is required to establish program requirements 
with the McKinney program to meet coordination with other 
agencies. If the Interagency Council has determined that proper 
coordination has not occurred, then the Chairperson and the HUD 
Secretary are authorized to create andfund a companion services 
block grant from portions of other block grants (noted below) where 
homeless services are an eligible activity, limited by the amount 
available by this Act.
    Similar to transfer authority provisions in the National 
Narcotics Leadership Act Amendments of 1997, (passed on October 
21, 1997) the Chairperson of the Interagency Council and the 
HUD Secretary would be authorized to transfer such funds, 
subject to approval by the Committees on Appropriations, the 
head of the affected agency and the respective authorizing 
committees of the House and Senate.
    Programs identified under this coordination provision are: 
Sec. 340 and part C of title V of the Public Service Act; 
programs for education, training and community services under 
title VII of the Stewart B. McKinney Homeless Assistance Act; 
food assistance for homeless persons and families via the Food 
Stamp Act of 1977 and the Emergency Food Assistance Act of 
1983; job training, housing, and medical programs for homeless 
veterans of the Department of Veterans Affairs; the job corps 
centers for homeless families under Sec. 433A of the Job 
Training Partnership Act; preventive services for children of 
homeless families or families at risk under title III of the 
Child Abuse Prevention and Treatment Act; the Runaway and 
Homeless Youth Act; assistance for homeless person and families 
under state programs funded under supplemental security income 
programs under part A of title IV or under title XVI of the 
Social Security Act.

Sec. 408(n)  Consultation regarding use of National Guard facilities as 
        homeless shelters

    Requires the state to consult with the Secretary regarding 
the possibility of making space at National Guard facilities 
under the jurisdiction of the state available for use by 
homeless organizations to provide shelter to homeless persons 
when the facilities are not actively being used for National 
Guard purposes.

Sec. 409  Supportive services

    Requires the grantee, to the extent allowable, to provide 
appropriate services to those residents of the assisted 
developments under this title. Although special populations, 
such as persons with disabilities, are not targeted, grantees 
are required to address their special needs. Support services 
include child care, employment assistance, outpatient health 
services, food and case management, permanent housing 
assistance, security arrangements, and coordination of services 
with other local and Federal entities.

Sec. 410  Nondiscrimination in programs and activities

    Provides non-discrimination clause.

Subtitle B--Permanent housing development activities

Sec. 411  Use of amounts and general requirements

    Authorizes Secretary to provide amounts set-aside for 
permanent housing development to grantees through a competitive 
process. Grantees are required to pass-through at least 50% of 
funds under this subtitle to non-profit groups selected through 
the local competitive selection process. Grantees are 
encouraged to target funds toward special need populations 
where practical. ``Permanent Housing Development activities'' 
means activities to construct, substantially rehabilitate, or 
acquire structures to provide permanent housing, including the 
capitalization of a dedicated project account from which long-
term assistance payments can be made in order to facilitate 
such activities and activities under Section 441 of the Stewart 
B. McKinney Homeless Assistance Act, as in effect on October 
31, 1997 (subject to the limitation in Section 406(b)(3) of the 
Act).

Sec. 412  Permanent housing development

    Defines permanent housing as long-term housing for homeless 
persons that meet local or state housing code requirements. 
Permanent housing may be restricted to homeless-only or be 
mixed population use or in the form of rental housing, shared 
living, single family or other types of housing arrangements.

Subtitle C--Flexible Block Grant Homeless Assistance

Sec. 421  Eligible activities

    Provides grant funds for activities under this Subtitle 
including (1) acquisition or rehabilitation of supportive 
housing; (2) construction of new supportive housing; (3) 
leasing supportive housing; (4) providing operating costs for 
supportive housing; (5) allowing homeless prevention measures; 
(6) providing permanent housing development under Subtitle B; 
(7) funding emergency shelters; (8) providing supportive 
services; and, (9) allowing funding for technical assistance.

Sec. 422  Use of amounts through private non-profit providers

    Grantees are required to pass through at least 50% of funds 
under this subtitle to non-profits.

Sec. 423  Supportive services

    Supportive services are defined as meeting the criteria in 
Section 409, including transitional, permanent, single room 
occupancy or safe haven housing that meets local or state 
housing code requirements.

Sec. 424  Emergency shelter

    Defines emergency shelters as any facility designed to 
provide overnight sleeping accommodations for homeless persons, 
provided the Secretary determines that use of the funds is 
necessary and the project sponsor agrees to maintain the 
building for at least 10 years, in cases where the building is 
converted or experiences major rehabilitation. Each facility is 
required to provide appropriate services.

Subtitle D--Reporting, definitions, and funding

Sec. 431  Performance reports by grantees

    Requires each grantee to review and report to the Secretary 
progress made on carrying-out the eligible activities under 
this Act. The report and review would be available to the 
public and in a form acceptable to the Secretary.

Sec. 432  Annual report by Secretary

    Requires the Secretary to provide a report on this Act and 
make it available to the public through electronic access.

Sec. 433  Definitions

    Provides definitions under this Act.

Sec. 434  Regulations

    Requires the Secretary to issue interim regulations within 
30 days after enactment and final regulations in accordance 
with the Administrative Procedures Act.

Sec. 435  Authorization of appropriations

    Authorizes, through FY2002, $1 billion. Additionally, this 
provision prohibits any fund restrictions or set-asides, during 
the appropriation process, from amounts appropriated for this 
Act.

Sec. 6  Interagency Council on the Homeless

    Amends current Sec. 202(b) of the Steward B. McKinney 
Homeless Assistance Act to provide for a Chairperson and Vice-
Chairperson, provided the first elected Chairman is other than 
the HUD Secretary. The HUD Secretary is Vice-Chairman in all 
cases when not elected or selected Chairman. The Council is 
authorized up to .0012 of total appropriations or approximately 
$1 million out of $823 million appropriation, through October 
1, 2002, to meet administrative needs in coordinating and 
disseminating information.

Sec. 7  Inventory of Federal facilities suitable for overnight shelter 
        for homeless persons

    Requires the HUD Secretary to request from each executive 
branch agency and inventory of facilities under their 
jurisdiction that could be suitable for use as temporary 
overnight shelters for homeless persons. The Secretary is to 
publish this information not later than 60 days after enactment 
of this Act.

Sec. 8  Repeals and conforming amendments

    Repeals Innovative Homeless Initiatives Demonstration; FHA 
Single Family Property Disposition for Homeless Use; Housing 
for Rural Homeless and Migrant Farmworkers; and, SRO Assistance 
Program. Conforms amendments to the Youthbuild Program and 
makes clerical amendments to the table of contents in Section 
101(B) of the Steward B. McKinney Homeless Assistance Act.

Sec. 9  Savings provisions

    Provides that this Act will not abrogate existing contracts 
or agreements made prior to enactment of this Act.

Sec. 10  Treatments of previously obligated amounts

    Provides that previous appropriated amounts obligated to 
grantees or recipients will be subject to the McKinney Act 
requirements in effect prior to enactment of this Act.

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3 of rule XIII of the Rules of the 
House of Representatives, changes in existing law made by the 
bill, as reported, are shown as follows (existing law proposed 
to be omitted is enclosed in black brackets, new matter is 
printed in italic, existing law in which no change is proposed 
is shown in roman):

              STEWART B. MCKINNEY HOMELESS ASSISTANCE ACT

SECTION 101. SHORT TITLE AND TABLE OF CONTENTS.

  (a) * * *
  (b) Table Of Contents.--

                      [TITLE I--GENERAL PROVISIONS

[Sec. 101. Short title and table of contents.
[Sec. 102. Findings and purpose.
[Sec. 103. General definition of homeless individual.
[Sec. 104. Funding availability and limitations.
[Sec. 105. Annual program summary by Comptroller General.

             [TITLE II--INTERAGENCY COUNCIL ON THE HOMELESS

[Sec. 201. Establishment.
[Sec. 202. Membership.
[Sec. 203. Functions.
[Sec. 204. Director and staff.
[Sec. 205. Powers.
[Sec. 206. Transfer of functions.
[Sec. 207. Definitions.
[Sec. 208. Authorization of appropriations.
[Sec. 209. Termination.
[Sec. 210. Encouragement of State involvement.

    [TITLE III--FEDERAL EMERGENCY MANAGEMENT FOOD AND SHELTER PROGRAM

                 [Subtitle A--Administrative Provisions

[Sec. 301. Emergency Food and Shelter Program National Board.
[Sec. 302. Local boards.
[Sec. 303. Role of Federal Emergency Management Agency.
[Sec. 304. Records and audit of National Board and recipients of 
          assistance.
[Sec. 305. Annual report.

             [Subtitle B--Emergency Food and Shelter Grants

[Sec. 311. Grants by the Director.
[Sec. 312. Retention of interest earned.
[Sec. 313. Purposes of grants.
[Sec. 314. Limitation on certain costs.
[Sec. 315. Disbursement of funds.
[Sec. 316. Program guidelines.

                     [Subtitle C--General Provisions

[Sec. 321. Definitions.
[Sec. 322. Authorization of appropriations.

                      [TITLE IV--HOUSING ASSISTANCE

           [Subtitle A--Comprehensive Homeless Assistance Plan

[Sec. 401. Housing affordability strategy.

              [Subtitle B--Emergency Shelter Grants Program

[Sec. 411. Definitions.
[Sec. 412. Grant assistance.
[Sec. 413. Allocation and distribution of assistance.
[Sec. 414. Eligible activities.
[Sec. 415. Responsibilities of recipients.
[Sec. 416. Administrative provisions.
[Sec. 417. Authorization of appropriations.
[Sec. 418. Administrative costs.

                 [Subtitle C--Supportive Housing Program

[Sec. 421. Purpose.
[Sec. 422. Definitions.
[Sec. 423. Eligible activities.
[Sec. 424. Supportive housing.
[Sec. 425. Supportive services.
[Sec. 426. Program requirements.
[Sec. 427. Regulations.
[Sec. 428. Reports to Congress.
[Sec. 429. Authorization of appropriations.

 [Subtitle D--Safe Havens for Homeless Individuals Demonstration Program

[Sec. 431. Establishment of demonstration.
[Sec. 432. Definitions.
[Sec. 433. Program assistance.
[Sec. 434. Program requirements.
[Sec. 435. Occupancy charge.
[Sec. 436. Termination of assistance.
[Sec. 437. Evaluation and report.
[Sec. 438. Regulations.
[Sec. 439. Authorization of appropriations.

                   [Subtitle E--Miscellaneous Programs

[Sec. 441. Section 8 assistance for single room occupancy dwellings.
[Sec. 442. Community development block grant amendment.
[Sec. 443. Administrative provisions.

                 [Subtitle F--Shelter Plus Care Program

                      [Part I--General Requirements

[Sec. 451. Purpose.
[Sec. 452. Rental housing assistance.
[Sec. 453. Supportive services requirements.
[Sec. 454. Applications.
[Sec. 455. Selection criteria.
[Sec. 456. Required agreements.
[Sec. 457. Housing standards and rent reasonableness.
[Sec. 458. Tenant rent.
[Sec. 459. Administrative fees.
[Sec. 460. Occupancy.
[Sec. 461. Termination of assistance.
[Sec. 462. Definitions.
[Sec. 463. Authorization of appropriations.

                [Part II--Tenant-Based Rental Assistance

[Sec. 471. Authority.
[Sec. 472. Housing assistance.
[Sec. 473. Amount of assistance.

               [Part III--Project-Based Rental Assistance

[Sec. 476. Authority.
[Sec. 477. Housing assistance.
[Sec. 478. Term of contract and amount of assistance.

                [Part IV--Sponsor-Based Rental Assistance

[Sec. 481. Authority.
[Sec. 482. Housing assistance.
[Sec. 483. Term of contract and amount of assistance.

 [Part V--Section 8 Moderate Rehabilitation Assistance for Single-Room 
                           Occupancy Dwellings

[Sec. 486. Authority.
[Sec. 487. Fire and safety improvements.
[Sec. 488. Contract requirements.

             [Subtitle G--Rural Homeless Housing Assistance

[Sec. 491. Rural homelessness grant program.
[Sec. 492. Use of FMHA inventory for transitional housing for homeless 
          persons and for turnkey housing.]
     * * * * * * *

                       TITLE I--GENERAL PROVISIONS

Sec. 101. Short title and table of contents.
Sec. 102. General definition of homeless individual.
Sec. 103. Funding availability and limitations.
Sec. 104. Annual program summary by Comptroller General.

              TITLE II--INTERAGENCY COUNCIL ON THE HOMELESS

Sec. 201. Establishment.
Sec. 202. Membership.
Sec. 203. Functions.
Sec. 204. Director and staff.
Sec. 205. Powers.
Sec. 206. Transfer of functions.
Sec. 207. Definitions.
Sec. 208. Authorization of appropriations.
Sec. 209. Termination.

    TITLE III--FEDERAL EMERGENCY MANAGEMENT FOOD AND SHELTER PROGRAM

                  Subtitle A--Administrative Provisions

Sec. 301. Emergency Food and Shelter Program National Board.
Sec. 302. Local boards.
Sec. 303. Role of Federal Emergency Management Agency.
Sec. 304. Records and audit of National Board and grantees of 
          assistance.
Sec. 305. Annual report.

              Subtitle B--Emergency Food and Shelter Grants

Sec. 311. Grants by the Director.
Sec. 312. Retention of interest earned.
Sec. 313. Purposes of grants.
Sec. 314. Limitation on certain costs.
Sec. 315. Disbursement of funds.
Sec. 316. Program guidelines.

                     Subtitle C--General Provisions

Sec. 321. Definitions.
Sec. 322. Authorization of appropriations.

    TITLE IV--PERMANENT HOUSING DEVELOPMENT AND FLEXIBLE BLOCK GRANT 
                       HOMELESS ASSISTANCE PROGRAM

                     Subtitle A--General Provisions

Sec. 401. Purpose; performance measures.
Sec. 402. Grant authority.
Sec. 403. Eligible grantees.
Sec. 404. Use of project sponsors.
Sec. 405. Comprehensive housing affordability strategy compliance.
Sec. 406. Allocation and availability of amounts.
Sec. 407. Matching funds requirement.
Sec. 408. Program requirements.
Sec. 409. Supportive services.
Sec. 410. Nondiscrimination in programs and activities.

          Subtitle B--Permanent Housing Development Activities

Sec. 411. Use of amounts and general requirements.
Sec. 412. Permanent housing development.

          Subtitle C--Flexible Block Grant Homeless Assistance

Sec. 421. Eligible activities.
Sec. 422. Use of amounts through private nonprofit providers.
Sec. 423. Supportive housing.
Sec. 424. Emergency shelter.

             Subtitle D--Reporting, Definitions, and Funding

Sec. 431. Performance reports by grantees.
Sec. 432. Annual report by Secretary.
Sec. 433. Definitions.
Sec. 434. Regulations.
Sec. 435. Authorization of appropriations.

[SEC. 102. FINDINGS AND PURPOSE.

  [(a) Findings.--The Congress finds that--
          [(1) the Nation faces an immediate and unprecedented 
        crisis due to the lack of shelter for a growing number 
        of individuals and families, including elderly persons, 
        handicapped persons, families with children, Native 
        Americans, and veterans;
          [(2) the problem of homelessness has become more 
        severe and, in the absence of more effective efforts, 
        is expected to become dramatically worse, endangering 
        the lives and safety of the homeless;
          [(3) the causes of homelessness are many and complex, 
        and homeless individuals have diverse needs;
          [(4) there is no single, simple solution to the 
        problem of homelessness because of the different 
        subpopulations of the homeless, the different causes of 
        and reasons for homelessness, and the different needs 
        of homeless individuals;
          [(5) due to the record increase in homelessness, 
        States, units of local government, and private 
        voluntary organizations have been unable to meet the 
        basic human needs of all the homeless and, in the 
        absence of greater Federal assistance, will be unable 
        to protect the lives and safety of all the homeless in 
        need of assistance; and
          [(6) the Federal Government has a clear 
        responsibility and an existing capacity to fulfill a 
        more effective and responsible role to meet the basic 
        human needs and to engender respect for the human 
        dignity of the homeless.
  [(b) Purpose.--It is the purpose of this Act--
          [(1) to establish an Interagency Council on the 
        Homeless;
          [(2) to use public resources and programs in a more 
        coordinated manner to meet the critically urgent needs 
        of the homeless of the Nation; and
          [(3) to provide funds for programs to assist the 
        homeless, with special emphasis on elderly persons, 
        handicapped persons, families with children, Native 
        Americans, and veterans.]

SEC. [103] 102. GENERAL DEFINITION OF HOMELESS INDIVIDUAL.

  (a) In General.--For purposes of this Act, [the term 
``homeless'' or ``homeless individual or homeless person'' 
includes] the terms ``homeless'', ``individual'', and 
``homeless person'' include--
          (1) * * *
          * * * * * * *
  (c) Exclusion.--For purposes of this Act, [the term 
``homeless'' or ``homeless individual'' does not include] the 
terms ``homeless'', ``individual'', and ``homeless person'' do 
not include any individual imprisoned or otherwise detained 
pursuant to an Act of the Congress or a State law.

SEC. [104] 103. FUNDING AVAILABILITY AND LIMITATIONS.

  (a) Calculation.--The amounts authorized in this Act shall be 
in addition to any amount appropriated for the programs 
involved before the date of the enactment of this Act.
          * * * * * * *

SEC. [105] 104. ANNUAL PROGRAM SUMMARY BY COMPTROLLER GENERAL.

  The Comptroller General of the United States may evaluate the 
disbursement and use of the amounts made available by 
appropriation Acts under the authorizations in titles III and 
IV.
          * * * * * * *

             TITLE II--INTERAGENCY COUNCIL ON THE HOMELESS

          * * * * * * *

SEC. 202. MEMBERSHIP.

  (a) * * *
  [(b) Chairperson.--The Council shall elect a Chairperson and 
a Vice Chairperson from among its members.]
  (b) Chairperson and Vice Chairperson.--
          (1) Chairperson.--The Council shall elect a 
        Chairperson from among its members, who shall have a 
        term of 2 years. A member of the Council by reason of 
        any of paragraphs (1) through (16) of subsection (a) 
        who serves as Chairperson for a term may not be elected 
        to serve as Chairperson for the succeeding term. The 
        preceding sentence shall not apply to any member 
        serving as Chairperson on the date of the enactment of 
        the Homeless Housing Programs Consolidation and 
        Flexibility Act.
          (2) Vice chairperson.--The Vice Chairperson of the 
        Council shall have a term of 2 years and shall be--
                  (A) the Secretary of Housing and Urban 
                Development, if such Secretary is not elected 
                as the Chairperson of the Council; or
                  (B) elected by the Council from among its 
                members, if the Secretary of Housing and Urban 
                Development is elected as the Chairperson of 
                the Council.
          (3) Notwithstanding paragraphs (1) and (2), the first 
        Chairperson elected after the date of the enactment of 
        the Homeless Housing Programs Consolidation and 
        Flexibility Act may not be the Secretary of Housing and 
        Urban Development.
          * * * * * * *

[SEC. 208. AUTHORIZATION OF APPROPRIATIONS.

  [There are authorized to be appropriated to carry out this 
title $1,500,000 for fiscal year 1993 and $1,563,000 for fiscal 
year 1994.]

SEC. 208. AUTHORIZATION OF APPROPRIATIONS.

  Of any amounts made available in any fiscal year to carry out 
this Act, 0.0012 of such amounts shall be available to carry 
out this title.

SEC. 209. TERMINATION.

  The Council shall cease to exist, and the requirements of 
this title shall terminate, on October 1, [1994] 2002.

[SEC. 210. ENCOURAGEMENT OF STATE INVOLVEMENT.

    [(a) State Contact Persons.--Each State shall designate an 
individual to serve as a State contact person for the purpose 
of receiving and disseminating information and communications 
received from the Council, including the bimonthly bulletin 
described in section 203(a)(7).
    [(b) State Interagency Councils and Lead Agencies.--Each 
State is encouraged to establish a State interagency council on 
the homeless or designate a lead agency for the State for the 
purpose of assuming primary responsibility for coordinating and 
interacting with the Council and State and local agencies as 
necessary.]

    TITLE III--FEDERAL EMERGENCY MANAGEMENT FOOD AND SHELTER PROGRAM

          * * * * * * *

                     Subtitle C--General Provisions

          * * * * * * *

[SEC. 322. AUTHORIZATION OF APPROPRIATIONS.

  [There are authorized to be appropriated to carry out this 
title $180,000,000 for fiscal year 1993 and $187,560,000 for 
fiscal year 1994.]

SEC. 322. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated to carry out this 
title such sums as may be necessary for each of fiscal years 
1998, 1999, 2000, 2001, and 2002.

                     [TITLE IV--HOUSING ASSISTANCE

          [Subtitle A--Comprehensive Homeless Assistance Plan

[SEC. 401. HOUSING AFFORDABILITY STRATEGY.

  [Assistance may be made under this title only if the grantee 
certifies that it is following--
          [(1) a current housing affordability strategy which 
        has been approved by the Secretary in accordance with 
        section 105 of the Cranston-Gonzalez National 
        Affordable Housing Act, or
          [(2) a comprehensive homeless assistance plan which 
        was approved by the Secretary during the 180-day period 
        beginning on the date of enactment of the Cranston-
        Gonzalez National Affordable Housing Act, or during 
        such longer period as may be prescribed by the 
        Secretary in any case for good cause.

             [Subtitle B--Emergency Shelter Grants Program

[SEC. 411. DEFINITIONS.

  [For purposes of this subtitle:
          [(1) The term ``local government'' means a unit of 
        general purpose local government.
          [(2) The term ``locality'' means the geographical 
        area within the jurisdiction of a local government.
          [(3) The term ``metropolitan city'' has the meaning 
        given such term in section 102 of the Housing and 
        Community Development Act of 1974.
          [(4) The term ``operating costs'' means expenses 
        incurred by a recipient operating a facility assisted 
        under this subtitle with respect to--
                  [(A) the administration, maintenance, repair, 
                and security of such housing; and
                  [(B) utilities, fuels, furnishings, and 
                equipment for such housing.
          [(5) The term ``private nonprofit organization'' 
        means a secular or religious organization described in 
        section 501(c) of the Internal Revenue Code of 1986 
        that is exempt from taxation under subtitle A of such 
        Code, has an accounting system and a voluntary board, 
        and practices nondiscrimination in the provision of 
        assistance.
          [(6) The term ``recipient'' means any governmental or 
        private nonprofit entity that is approved by the 
        Secretary as to financial responsibility.
          [(7) The term ``Secretary'' means the Secretary of 
        Housing and Urban Development.
          [(8) The term ``State'' means each of the several 
        States, the District of Columbia, the Commonwealth of 
        Puerto Rico, the Virgin Islands, Guam, American Samoa, 
        the Northern Mariana Islands, the Trust Territory of 
        the Pacific Islands, and any other territory or 
        possession of the United States.
          [(9) The term ``urban county'' has the meaning given 
        such term in section 102 of the Housing and Community 
        Development Act of 1974.
          [(10) The term ``Indian tribe'' has the meaning given 
        such term in section 102(a)(17) of the Housing and 
        Community Development Act of

[SEC. 412. GRANT ASSISTANCE.

  [The Secretary of Housing and Urban Development shall, to the 
extent of amounts approved in appropriation Acts under section 
417, make grants to States and local governments, and for 
Indian tribes, (and to private nonprofit organizations 
providing assistance to homeless individuals, in the case of 
grants made with reallocated amounts) in order to carry out 
activities described in section 414.

[SEC. 413. ALLOCATION AND DISTRIBUTION OF ASSISTANCE.

  [(a) In General.--The Secretary shall allocate assistance 
under this subtitle to metropolitan cities, urban counties, and 
States (for distribution to local governments and private 
nonprofit organizations in the States) and to Indian tribes, in 
a manner that ensures that the percentage of the total amount 
available under this subtitle for any fiscal year that is 
allocated to any State, metropolitan city, or urban county, or 
for Indian tribes is equal to the percentage of the total 
amount available for section 106 of the Housing and Community 
Development Act of 1974 for such prior fiscal year that is 
allocated to such State, metropolitan city, or urban county, or 
for Indian tribes.
  [(b) Minimum Allocation Requirement.--If, under the 
allocation provisions applicable under this subtitle, any 
metropolitan city or urban county would receive a grant of less 
than 0.05 percent of the amounts appropriated to carry out this 
subtitle for any fiscal year, such amount shall instead be 
reallocated to the State, except that any city that is located 
in a State that does not have counties as local governments, 
that has a population greater than 40,000 but less than 50,000 
as used in determining the fiscal year 1987 community 
development block grant program allocation, and that was 
allocated in excess of $1,000,000 in community development 
block grant funds in fiscal year 1987, shall receive directly 
the amount allocated to such city under subsection (a).
  [(c) Distributions to Nonprofit Organizations.--Any local 
government or Indian tribe receiving assistance under this 
subtitle may distribute all or a portion of such assistance to 
private nonprofit organizations providing assistance to 
homeless individuals. Any State receiving assistance under this 
subtitle may distribute all or a portion of such assistance to 
private nonprofit organizations providing assistance to 
homeless individuals, if the local government for the locality 
in which the project is located certifies that it approves of 
the project.
  [(d) Reallocation of Funds.--
          [(1) The Secretary shall, not less than twice during 
        each fiscal year, reallocate any assistance provided 
        under this subtitle that is unused or returned or that 
        becomes available under subsection (b).
          [(2) If a city or county eligible for a grant under 
        subsection (a) fails to obtain approval of its 
        comprehensive plan during the 90-day period following 
        the date funds authorized by this subtitle first become 
        available for allocation during any fiscal year, the 
        amount that the city or county would have received 
        shall be available to the State in which the city or 
        county is located if the State has obtained approval of 
        its comprehensive plan. Any amounts that cannot be 
        allocated to a State under the preceding sentence shall 
        be reallocated to other States, counties, and cities 
        that demonstrate extraordinary need or large numbers of 
        homeless individuals, as determined by the Secretary.
          [(3) If a State or Indian tribe fails to obtain 
        approval of its comprehensive plan during the 90-day 
        period following thedate funds authorized by this 
subtitle first become available for allocation during any fiscal year, 
the amount that the State or Indian tribe would have received shall be 
reallocated to other States and to cities and counties, or other Indian 
tribes, as applicable, that demonstrate extraordinary need or large 
numbers of homeless individuals, as determined by the Secretary.
  [(e) Allocations to Territories.--In addition to the other 
allocations required in this section, the Secretary shall (for 
amounts appropriated after the date of enactment of this Act) 
allocate assistance under this subtitle to the Virgin Islands, 
Guam, American Samoa, the Northern Mariana Islands, the Trust 
Territory of the Pacific Islands, and any other territory or 
possession of the United States, in accordance with an 
allocation formula established by the Secretary.

[SEC. 414. ELIGIBLE ACTIVITIES.

  [(a) In General.--Assistance provided under this subtitle may 
be used for the following activities relating to emergency 
shelter for homeless individuals:
          [(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, drug abuse, 
        or education, if--
                  [(A) such services have not been provided by 
                the local government or Indian tribe during any 
                part of the immediately preceding 12-month 
                period, or the use of assistance under this 
                subtitle would complement those services; and
                  [(B) not more than 30 percent of the 
                aggregate amount of all assistance to a State, 
                local government, or Indian tribe under this 
                subtitle is used for activities under this 
                paragraph.
          [(3) Maintenance, operation, insurance, utilities, 
        and furnishings, except that not more than 10 percent 
        of the amount of any grant received under this subtitle 
        may be used for costs of staff.
          [(4) Efforts to prevent homelessness such as 
        financial assistance to families who have received 
        eviction notices or notices of termination of utility 
        services if--
                  [(A) the inability of the family to make the 
                required payments is due to a sudden reduction 
                in income;
                  [(B) the assistance is necessary to avoid the 
                evicition or termination of services;
                  [(C) there is a reasonable prospect that the 
                family will be able to resume payments within a 
                reasonable period of time; and
                  [(D) the assistance will not supplant funding 
                for preexisting homelessness prevention 
                activities from other sources.
        Not more than 30 percent of the aggregate amount of all 
        assistance to a State, local government, or Indian 
        tribe under this subtitle may be used for activities 
        under this paragraph.
  [(b) Waiver Authority.--The Secretary may waive the 20 
percent limitation on the use of assistance for essential 
services contained in subsection (a)(2)(B), if the local 
government receiving the assistance demonstrates that the other 
eligible activities under the program are already being carried 
out in the locality with other resources.

[SEC. 415. RESPONSIBILITIES OF RECIPIENTS.

  [(a) Matching Amounts.--
          [(1) Except as provided in paragraph (2), each 
        recipient under this subtitle shall be required to 
        supplement the assistance provided under this subtitle 
        with an equal amount of funds from sources other than 
        this subtitle. Each recipient shall certify to the 
        Secretary its compliance with this paragraph, and shall 
        include with such certification a description of the 
        sources and amounts of such supplemental funds.
          [(2) Each recipient under this subtitle that is a 
        State shall be required to supplement the assistance 
        provided under this subtitle with an amount of funds 
        from sources other than this subtitle equal to the 
        difference between the amount received under this 
        subtitle and $100,000. If the amount received by the 
        State is $100,000 or less, the State may not be 
        required to supplement the assistance provided under 
        this subtitle.
          [(3) In calculating the amount of supplemental funds 
        provided by a recipient under this subtitle, a 
        recipient may include the value of any donated material 
        or building, the value of any lease on a building, any 
        salary paid to staff to carry out the program of the 
        recipient, and the value of the time and services 
        contributed by volunteers to carry out the program of 
        the recipient at a rate determined by the Secretary.
  [(b) Administration of Assistance.--Each recipient shall act 
as the fiscal agent of the Secretary with respect to assistance 
provided to such recipient.
  [(c) Certifications on Use of Assistance.--Each recipient 
shall certify to the Secretary that--
          [(1) it will--
                  [(A) in the case of assistance involving 
                major rehabilitation or conversion, maintain 
                any building for which assistance is used under 
                this subtitle as a shelter for homeless 
                individuals and families for not less than a 
                10-year period;
                  [(B) in the case of assistance involving 
                rehabilitation (other than major rehabilitation 
                or conversion), maintain any building for which 
                assistance is used under this subtitle as a 
                shelter for homeless individuals and families 
                for not less than a 3-year period; or
                  [(C) in the case of assistance involving 
                solely activities described in paragraphs (2) 
                and (3) of section 414(a), provide services or 
                shelter to homeless individuals and families 
                for the period during which such assistance is 
                provided, without regard to a particular site 
                or structure as long as the same general 
                population is served;
          [(2) any renovation carried out with assistance under 
        this subtitle shall be sufficient to ensure that the 
        building involved is safe and sanitary;
          [(3) it will assist homeless individuals in 
        obtaining--
                  [(A) appropriate supportive services, 
                including permanent housing, medical and mental 
                health treatment, counseling,supervision, and 
other services essential for achieving independent living; and
                  [(B) other Federal, State, local, and private 
                assistance available for such individuals;
          [(4) in the case of a recipient that is a State, it 
        will obtain any matching amounts required under 
        subsection (a) in a manner so that local governments, 
        Indian tribes, agencies, and local non-profit 
        organizations receiving assistance from the grant that 
        are least capable of providing the recipient State with 
        such matching amounts receive the benefit of the 
        $100,000 subtrahend under subsection (a)(2);
          [(5) it will develop and implement procedures to 
        ensure the confidentiality of records pertaining to any 
        individual provided family violence prevention or 
        treatment services under any project assisted under 
        this subtitle and that the address or location of any 
        family violence shelter project assisted under this 
        subtitle will, except with written authorization of the 
        person or persons responsible for the operation of such 
        shelter, not be made public;
          [(6) activities undertaken by the recipient with 
        assistance under this subtitle are consistent with any 
        housing strategy submitted by the grantee in accordance 
        with section 105 of the Cranston-Gonzalez National 
        Affordable Housing Act; and
          [(7) to the maximum extent practicable, it will 
        involve, through employment, volunteer services, or 
        otherwise, homeless individuals and families in 
        constructing, renovating, maintaining, and operating 
        facilities assisted under this subtitle, in providing 
        services assisted under this subtitle, and in providing 
        services for occupants of facilities assisted under 
        this subtitle.
  [(d) Participation of Homeless Individuals.--The Secretary 
shall, by regulation, require each recipient that is not a 
State to provide for the participation of not less than 1 
homeless individual or former homeless individual on the board 
of directors or other equivalent policymaking entity of such 
recipient, to the extent that such entity considers and makes 
policies and decisions regarding any facility, services, or 
other assistance of the recipient assisted under this subtitle. 
The Secretary may grant waivers to recipients unable to meet 
the requirement under the preceding sentence if the recipient 
agrees to otherwise consult with homeless or formerly homeless 
individuals in considering and making such policies and 
decisions.
  [(e) Termination of Assistance.--If an individual or family 
who receives assistance under this subtitle from a recipient 
violates program requirements, the recipient may terminate 
assistance in accordance with a formal process established by 
the recipient that recognizes the rights of individuals 
affected, which may include a hearing.

[SEC. 416. ADMINISTRATIVE PROVISIONS.

  [(a) Regulations.--Not later than 60 days after the date of 
enactment of this Act, the Secretary shall by notice establish 
such requirements as may be necessary to carry out the 
provisions of this subtitle. Such requirements shall be subject 
to section 553 of title 5, United States Code. The Secretary 
shall issue requirements based on the initial notice before the 
expiration of the 12-month period following the date of 
enactment of this Act. Prior to the issuance of such 
requirements in final form, the requirements established by the 
Secretary implementing the provisions of the emergency shelter 
grants program under the provisions made effective by section 
101(g) of Public Law 99-500 or Public Law 99-591 shall govern 
the emergency shelter grants program under this subtitle.
  [(b) Initial Allocation of Assistance.--Not later than the 
expiration of the 60-day period following the date of enactment 
of a law providing appropriations to carry out this subtitle, 
the Secretary shall notify each State, Indian tribe, 
metropolitan city, and urban county that is to receive a direct 
grant of its allocation of assistance under this subtitle. Such 
assistance shall be allocated and may be used notwithstanding 
any failure of the Secretary to issue requirements under 
subsection (a).
    [(c) Minimum Standards of Habitability.--The Secretary 
shall prescribe such minimum standards of habitability as the 
Secretary determines to be appropriate to ensure that emergency 
shelters assisted under this section are environments that 
provide appropriate privacy, safety, and sanitary and other 
health-related conditions for homeless persons and families. 
Grantees are authorized to establish standards of habitability 
in addition to those prescribed by the Secretary.

[SEC. 417. AUTHORIZATION OF APPROPRIATIONS.

  [There are authorized to be appropriated to carry out this 
subtitle $138,000,000 for fiscal year 1993 and $143,796,000 for 
fiscal year 1994.

[SEC. 418. ADMINISTRATIVE COSTS.

    [A recipient may use up to 5 percent of any annual grant 
received under this subtitle for administrative purposes. A 
recipient State shall share the amount available for 
administrative purposes pursuant to the preceding sentence with 
local governments funded by the State.

                [Subtitle C--Supportive Housing Program

[SEC. 421. PURPOSE.

  [The purpose of the program under this subtitle is to promote 
the development of supportive housing and supportive services, 
including innovative approaches to assist homeless persons in 
the transition from homelessness, and to promote the provision 
of supportive housing to homeless persons to enable them to 
live as independently as possible.

[SEC. 422. DEFINITIONS.

  [For purposes of this subtitle:
          [(1) The term ``applicant'' means a State, Indian 
        tribe, metropolitan city, urban county, governmental 
        entity, private nonprofit organization, or community 
        mental health association that is a public nonprofit 
        organization, that is eligible to receive assistance 
        under this subtitle and submits an application under 
        section 426(a).
          [(2) The term ``disability'' means--
                  [(A) a disability as defined in section 223 
                of the Social Security Act,
                  [(B) to be determined to have, pursuant to 
                regulations issued by the Secretary, a 
                physical, mental, or emotional impairment which 
                (i) is expected to be of long-continued and 
                indefinite duration, (ii) substantially impedes 
                an individual's ability to live independently, 
                and (iii) of such a nature that such ability 
                could be improved by more suitable housing 
                conditions,
                  [(C) a developmental disability as defined in 
                section 102 of the Developmental Disabilities 
                Assistance and Bill of Rights Act, or
                  [(D) the disease of acquired immunodeficiency 
                syndrome or any conditions arising from the 
                etiologic agency for acquired immunodeficiency 
                syndrome.
        Subparagraph (D) shall not be construed to limit 
        eligibility under subparagraphs (A) through (C) or the 
        provisions referred to in subparagraphs (A) through 
        (C).
          [(3) The term ``Indian tribe'' has the meaning given 
        the term in section 102(a) of the Housing and Community 
        Development Act of 1974.
          [(4) The term ``metropolitan city'' has the meaning 
        given the term in section 102 of the Housing and 
        Community Development Act of 1974.
          [(5) The term ``operating costs'' means expenses 
        incurred by a recipient operating supportive housing 
        under this subtitle with respect to--
                  [(A) the administration, maintenance, repair, 
                and security of such housing;
                  [(B) utilities, fuel, furnishings, and 
                equipment for such housing; and
                  [(C) the conducting of the assessment under 
                section 426(c)(2).
          [(6) The term ``outpatient health services'' means 
        outpatient health care, outpatient mental health 
        services, outpatient substance abuse services, and case 
        management.
          [(7) 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.
          [(8) The term ``project'' means a structure or 
        structures (or a portion of such structure or 
        structures) that is acquired, rehabilitated, 
        constructed, or leased with assistance provided under 
        this subtitle or with respect to which the Secretary 
        provides technical assistance or annual payments for 
        operating costs under this subtitle, or supportive 
        services.
          [(9) The term ``recipient'' means any governmental or 
        nonprofit entity that receives assistance under this 
        subtitle.
          [(10) The term ``Secretary'' means the Secretary of 
        Housing and Urban Development.
          [(11) The term ``State'' means each of the several 
        States, the District of Columbia, the Commonwealth of 
        Puerto Rico, the Virgin Islands, Guam, American Samoa, 
        the Northern Mariana Islands, and Palau.
          [(12) The term ``supportive housing'' means a project 
        that meets the requirements of section 424.
          [(13) The term ``supportive services'' means services 
        under section 425.
          [(14) The term ``urban county'' has the meaning given 
        the term in section 102 of the Housing and Community 
        Development Act of 1974.

[SEC. 423. ELIGIBLE ACTIVITIES.

  [(a) In General.--The Secretary may provide any project with 
one or more of the following types of assistance under this 
subtitle:
          [(1) Acquisition and rehabilitation.--A grant, in an 
        amount not to exceed $200,000, for the acquisition, 
        rehabilitation, or acquisition and rehabilitation, of 
        an existing structure (including a small commercial 
        property or office space) to provide supportive housing 
        other than emergency shelter or to provide supportive 
        services; except that the Secretary may increase the 
        dollar limitation under this sentence to not more than 
        $400,000 for areas that the Secretary finds have high 
        acquisition and rehabilitation costs. The repayment of 
        any outstanding debt owed on a loan made to purchase an 
        existing structure shall be considered to be a cost of 
        acquisition eligible for a grant under this paragraph 
        if the structure was not used as supportive housing, or 
        to provide supportive services, before the receipt of 
        assistance.
          [(2) New construction.--A grant, in an amount not to 
        exceed $400,000, for new construction of a structure to 
        provide supportive housing.
          [(3) Leasing.--A grant for leasing of an existing 
        structure or structures, or portions thereof, to 
        provide supportive housing or supportive services 
        during the period covered by the application. Grant 
        recipients may reapply for such assistance as needed to 
        continue the use of such structure for purposes of this 
        subtitle.
          [(4) Operating costs.--Annual payments for operating 
        costs of housing assisted under this subtitle, not to 
        exceed 75 percent of the annual operating costs of such 
        housing. Grant recipients may reapply for such 
        assistance as needed to continue the use of the housing 
        for purposes of this subtitle.
          [(5) Supportive services.--A grant for costs of 
        supportive services provided to homeless individuals. 
        Any recipient, including program recipients under title 
        IV of this Act before the date of the enactment of the 
        Housing and Community Development Act of 1992, may 
        reapply for such assistance or for the renewal of such 
        assistance to continue services funded under prior 
        grants or to provide other services.
          [(6) Technical assistance.--Technical assistance in 
        carrying out the purposes of this subtitle.
  [(b) Use Restrictions.--
          [(1) Acquisition, rehabilitation, and new 
        construction.--Projects assisted under subsection (a) 
        (1) or (2) shall be operated for not less than 20 years 
        for the purpose specified in the application.
          [(2) Other assistance.--Projects assisted under 
        subsection (a) (3), (4), (5), or (6) (but not under 
        subsection (a) (1) or (2)) shall be operated for the 
        purposes specified in the application for the duration 
        of the period covered by the grant.
          [(3) Conversion.--If the Secretary determines that a 
        project is no longer needed for use as supportive 
        housing and approves the use of the project for the 
        direct benefit of low-income persons pursuant to a 
        request for such use by the recipient operating the 
        project, the Secretary may authorize the recipient to 
        convert the project to such use.
  [(c) Repayment of Assistance and Prevention of Undue 
Benefits.--
          [(1) Repayment.--The Secretary shall require 
        recipients to repay 100 percent of any assistance 
        received under subsection (a) (1) or (2) if the project 
        ceases to be used as supportive housing within 10 years 
        after the project is placed in service. If such project 
        is used as supportive housing for more than 10 years, 
        the Secretary shall reduce the percentage of the amount 
        required to be repaid by 10 percentage points for each 
        year in excess of 10 that the project is used as 
        supportive housing.
          [(2) Prevention of undue benefits.--Except as 
        provided in paragraph (3), upon any sale or other 
        disposition of a project assisted under subsection (a) 
        (1) or (2) occurring before the expiration of the 20-
        year period beginning on the date that the project is 
        placed in service, the recipient shall comply with such 
        terms and conditions as the Secretary may prescribe to 
        prevent the recipient from unduly benefiting from such 
        sale or disposition.
          [(3) Exception.--A recipient shall not be required to 
        comply with the terms and conditions prescribed under 
        paragraphs (1) and (2) if the sale or disposition of 
        the project results in the use of the project for the 
        direct benefit of very low-income persons or if all of 
        the proceeds are used to provide supportive housing 
        meeting the requirements of this subtitle.

[SEC. 424. SUPPORTIVE HOUSING.

  [(a) In General.--Housing providing supportive services for 
homeless individuals shall be considered supportive housing for 
purposes of this subtitle if--
          [(1) the housing is safe and sanitary and meets any 
        applicable State and local housing codes and licensing 
        requirements in the jurisdiction in which the housing 
        is located; and
          [(2) the housing--
                  [(A) is transitional housing;
                  [(B) is permanent housing for homeless 
                persons with disabilities; or
                  [(C) is, or is part of, a particularly 
                innovative project for, or alternative methods 
                of, meeting the immediate and long-term needs 
                of homeless individuals and families.
  [(b) Transitional Housing.--For purposes of this section, the 
term ``transitional housing'' means housing, the purpose of 
which is to facilitate the movement of homeless individuals and 
families to permanent housing within 24 months or such longer 
period as the Secretary determines necessary. The Secretary may 
deny assistance for housing based on a violation of this 
subsection only if the Secretary determines that a substantial 
number of homeless individuals or families have remained in the 
housing longer than such period.
  [(c) Permanent Housing for Homeless Persons With 
Disabilities.--For purposes of this section, the term 
``permanent housing for homeless persons with disabilities'' 
means community-based housing for homeless persons with 
disabilities that provides long-term housing and supportive 
services for not more than--
          [(1) 8 such persons in a single structure or 
        contiguous structures;
          [(2) 16 such persons, but only if not more than 20 
        percent of the units in a structure are designated for 
        such persons; or
          [(3) more than 16 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.
  [(d) Single Room Occupancy Dwellings.--A project may provide 
supportive housing or supportive services in dwelling units 
that do not contain bathrooms or kitchen facilities and are 
appropriate for use as supportive housing or in projects 
containing some or all such dwelling units.

[SEC. 425. SUPPORTIVE SERVICES.

  [(a) In General.--To the extent practicable, each project 
shall provide supportive services for residents of the project 
and homeless persons using the project, which may be designed 
by the recipient or participants.
  [(b) Requirements.--Supportive services provided in 
connection with a project shall address the special needs of 
individuals (such as homeless persons with disabilities and 
homeless families with children) intended to be served by a 
project.
  [(c) Services.--Supportive services may include such 
activities as (A) establishing and operating a child care 
services program for homeless families, (B) establishing and 
operating an employment assistance program, (C) providing 
outpatient health services, food, and case management, (D) 
providing assistance in obtaining permanent housing, employment 
counseling, and nutritional counseling, (E) providing security 
arrangements necessary for the protection of residents of 
supportive housing and for homeless persons using the housing 
or project, (F) providing assistance in obtaining other 
Federal, State, and local assistance available for such 
residents (including mental health benefits, employment 
counseling, and medical assistance, but not including major 
medical equipment), and (G) providing other appropriate 
services.
  [(d) Provision of Services.--Services provided pursuant to 
this section may be provided directly by the recipient or by 
contract with other public or private service providers. Such 
services maybe provided to homeless individuals who do not 
reside in supportive housing.
  [(e) Coordination With Secretary of Health and Human 
Services.--
          [(1) Approval.--Promptly upon receipt of any 
        application for assistance under this subtitle that 
        includes the provision of outpatient health services, 
        the Secretary of Housing and Urban Development shall 
        consult with the Secretary of Health and Human Services 
        with respect to the proposed outpatient health 
        services. If, within 45 days of such consultation, the 
        Secretary of Health and Human Services determines that 
        the proposal for delivery of the outpatient health 
        services does not meet guidelines for determining the 
        appropriateness of such proposed services, the 
        Secretary of Housing and Urban Development may require 
        resubmission of the application, and the Secretary of 
        Housing and Urban Development may not approve such 
        portion of the application unless and until such 
        portion has been resubmitted in a form that the 
        Secretary of Health and Human Services determines meets 
        such guidelines.
          [(2) Guidelines.--The Secretary of Housing and Urban 
        Development and the Secretary of Health and Human 
        Services shall jointly establish guidelines for 
        determining the appropriateness of proposed outpatient 
        health services under this section. Such guidelines 
        shall include any provisions necessary to enable the 
        Secretary of Housing and Urban Development to meet the 
        time limits under this subtitle for the final selection 
        of applications for assistance.

[SEC. 426. PROGRAM REQUIREMENTS.

  [(a) Applications.--
          [(1) Form and procedure.--Applications for assistance 
        under this subtitle shall be submitted by applicants in 
        the form and in accordance with the procedures 
        established by the Secretary. The Secretary may not 
        give preference or priority to any application on the 
        basis that the application was submitted by any 
        particular type of applicant entity.
          [(2) Contents.--The Secretary shall require that 
        applications contain at a minimum--
                  [(A) a description of the proposed project, 
                including the activities to be undertaken;
                  [(B) a description of the size and 
                characteristics of the population that would 
                occupy the supportive housing assisted under 
                this subtitle;
                  [(C) a description of the public and private 
                resources that are expected to be made 
                available for the project;
                  [(D) in the case of projects assisted under 
                section 423(a) (1) or (2), assurances 
                satisfactory to the Secretary that the project 
                will be operated for not less than 20 years for 
                the purpose specified in the application;
                  [(E) in the case of projects assisted under 
                this title that do not receive assistance under 
                such sections, annual assurances during the 
                period specified in the application that the 
                project will be operated for the purpose 
                specified in the application for such period;
                  [(F) a certification from the public official 
                responsible for submitting the comprehensive 
                housing affordability strategy under section 
                105 of the Cranston-Gonzalez National 
                Affordable Housing Act for the State or unit of 
                general local government within which the 
                project is located that the proposed project is 
                consistent with the approved housing strategy 
                of such State or unit of general local 
                government; and
                  [(G) a certification that the applicant will 
                comply with the requirements of the Fair 
                Housing Act, title VI of the Civil Rights Act 
                of 1964, section 504 of the Rehabilitation Act 
                of 1973, and the Age Discrimination Act of 
                1975, and will affirmatively further fair 
                housing.
          [(3) 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 assisted 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 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) Selection Criteria.--The Secretary shall select 
applicants approved by the Secretary as to financial 
responsibility to receive assistance under this subtitle by a 
national competition based on criteria established by the 
Secretary, which shall include--
          [(1) the ability of the applicant to develop and 
        operate a project;
          [(2) the innovative quality of the proposal in 
        providing a project;
          [(3) the need for the type of project proposed by the 
        applicant in the area to be served;
          [(4) the extent to which the amount of assistance to 
        be provided under this subtitle will be supplemented 
        with resources from other public and private sources;
          [(5) the cost-effectiveness of the proposed project;
          [(6) the extent to which the applicant has 
        demonstrated coordination with other Federal, State, 
        local, private and other entities serving homeless 
        persons in the planning and operation of the project, 
        to the extent practicable; and
          [(7) such other factors as the Secretary determines 
        to be appropriate to carry out this subtitle in an 
        effective and efficient manner.
  [(c) Required Agreements.--The Secretary may not provide 
assistance for any project under this subtitle unless the 
applicant agrees--
          [(1) to operate the proposed project in accordance 
        with the provisions of this subtitle;
          [(2) to conduct an ongoing assessment of the 
        supportive services required by homeless individuals 
        served by the project and the availability of such 
        services to such individuals;
          [(3) to provide such residential supervision as the 
        Secretary determines is necessary to facilitate the 
        adequate provision of supportive services to the 
        residents and users of the project;
          [(4) to monitor and report to the Secretary on the 
        progress of the project;
          [(5) to develop and implement procedures to ensure 
        (A) the confidentiality of records pertaining to any 
        individual provided family violence prevention or 
        treatment services through any project assisted under 
        this subtitle, and (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 or persons responsible for 
        the operation of such project;
          [(6) to the maximum extent practicable, to involve 
        homeless individuals and families, through employment, 
        volunteer services, or otherwise, in constructing, 
        rehabilitating, maintaining, and operating the project 
        assisted under this subtitle and in providing 
        supportive services for the project; 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.
  [(d) Occupancy Charge.--Each homeless individual or family 
residing in a project providing supportive housing may be 
required to pay an occupancy charge in an amount determined by 
the recipient providing the project, which may not exceed the 
amount determined under section 3(a) of the United States 
Housing Act of 1937. Occupancy charges paid may be reserved, in 
whole or in part, to assist residents in moving to permanent 
housing.
  [(e) Matching Funding.--Each recipient shall be required to 
supplement the amount of assistance provided under paragraphs 
(1) and (2) of section 423(a) with an equal amount of funds 
from sources other than this subtitle.
  [(f) Flood Protection Standards.--Flood protection standards 
applicable to housing acquired, rehabilitated, constructed, or 
assisted under this subtitle shall be no more restrictive than 
the standards applicable under Executive Order No. 11988 (May 
24, 1977) to the other programs under this title.
  [(g) Participation of Homeless Individuals.--The Secretary 
shall, by regulation, require each recipient to provide for the 
participation of not less than 1 homeless individual or former 
homeless individual on the board of directors or other 
equivalent policymaking entity of the recipient, to the extent 
that such entity considers and makes policies and decisions 
regarding any project, supportive services, or assistance 
provided under this subtitle. The Secretary may grant waivers 
to applicants unable to meet the requirement under the 
preceding sentence if the applicant agrees to otherwise consult 
with homeless or formerly homeless individuals in considering 
and making such policies and decisions.
  [(h) Limitation on Use of Funds.--No assistance received 
under this subtitle (or any State or local government funds 
used to supplement such assistance) may be used to replace 
other State or local funds previously used, or designated for 
use, to assist homeless persons.
  [(i) Limitation on Administrative Expenses.--No recipient may 
use more than 5 percent of a grant received under this subtitle 
for administrative purposes.
  [(j) Termination of Assistance.--If an individual or family 
who receives assistance under this subtitle (not including 
residents of an emergency shelter) from a recipient violates 
program requirements, the recipient may terminate assistance in 
accordance with a formal process established by the recipient 
that recognizes the rights of individuals receiving such 
assistance to due process of law, which may include a hearing.

[SEC. 427. REGULATIONS.

  [Not later than the expiration of the 90-day period beginning 
on the date of the enactment of the Housing and Community 
Development Act of 1992, the Secretary shall issue interim 
regulations to carry out this subtitle, which shall take effect 
upon issuance. The Secretary shall issue final regulations to 
carry out this subtitle after notice and opportunity for public 
comment regarding the interim regulations, pursuant to the 
provisions of section 553 of title 5, United States Code 
(notwithstanding subsections (a)(2), (b)(B), and (d)(3) of such 
section). The duration of the period for public comment shall 
not be less than 60 days, and the final regulations shall be 
issued not later than the expiration of the 60-day period 
beginning upon the conclusion of the comment period and shall 
take effect upon issuance.

[SEC. 428. REPORTS TO CONGRESS.

  [The Secretary shall submit a report to the Congress 
annually, summarizing the activities carried out under this 
subtitle and setting forth the findings, conclusions, and 
recommendations of the Secretary as a result of the activities. 
The report shall be submitted not later than 4 months after the 
end of each fiscal year (except that, in the case of fiscal 
year 1993, the report shall be submitted not later than 6 
months after the end of the fiscal year).

[SEC. 429. AUTHORIZATION OF APPROPRIATIONS.

  [(a) Authorization of Appropriations.--There are authorized 
to be appropriated to carry out this subtitle $204,000,000 for 
fiscal year 1993 and $212,568,000 for fiscal year 1994.
  [(b) Set-Asides.--Of any amounts appropriated to carry out 
this subtitle--
          [(1) not less than 25 percent shall be allocated to 
        projects designed primarily to serve homeless families 
        with children;
          [(2) not less than 25 percent shall be allocated to 
        projects designed primarily to serve homeless persons 
        with disabilities; and
          [(3) not less than 10 percent shall be allocated for 
        use only for providing supportive services under 
        sections 423(a)(5) and 425, not provided in conjunction 
        with supportive housing.
  [(c) Reallocations.--If, following the receipt of 
applications for the final funding round under this subtitle 
for any fiscal year, any amount set aside for assistance 
pursuant to subsection (b) will not be required to fund the 
approvable applications submitted forsuch assistance, the 
Secretary shall reallocate such amount for other assistance pursuant to 
this subtitle.

[Subtitle D--Safe Havens for Homeless Individuals Demonstration Program

[SEC. 431. ESTABLISHMENT OF DEMONSTRATION.

  [(a) In General.--The Secretary may make grants to applicants 
to demonstrate the desirability and feasibility of providing 
very low-cost housing, to be known as safe havens, to homeless 
persons who, at the time, are unwilling or unable to 
participate in mental health treatment programs or to receive 
other supportive services.
  [(b) Purposes.--The demonstration program carried out under 
this subtitle shall demonstrate--
          [(1) whether and on what basis eligible persons 
        choose to reside in safe havens;
          [(2) the extent to which, after a period of residence 
        in a safe haven, residents are willing to participate 
        in mental health treatment programs, substance abuse 
        treatment, or other treatment programs and to move 
        toward a more traditional form of permanent housing and 
        the availability in the community of such permanent 
        housing and treatment programs;
          [(3) whether safe havens are cost-effective in 
        comparison with other alternatives for eligible 
        persons; and
          [(4) the various ways in which safe havens may be 
        used to provide accommodations and low-demand services 
        and referrals for eligible persons.

[SEC. 432. DEFINITIONS.

  [For purposes of this subtitle:
          [(1) Applicant.--The term ``applicant'' means a 
        nonprofit corporation, public nonprofit organization, 
        State, or unit of general local government.
          [(2) Eligible person.--The term ``eligible person'' 
        means an individual who--
                  [(A) is seriously mentally ill and resides 
                primarily in a public or private place not 
                designed for, or ordinarily used as, a regular 
                sleeping accommodation for human beings, which 
                may include occasional residence in an 
                emergency shelter; and
                  [(B) is currently unwilling or unable to 
                participate in mental health or substance abuse 
                treatment programs or to receive other 
                supportive services.
        Such term does not include a person whose sole 
        impairment is substance abuse.
          [(3) Facility.--The term ``facility'' means a 
        structure or a clearly identifiable portion of a 
        structure that is assisted under this subtitle.
          [(4) Low-demand services and referrals.--The term 
        ``low-demand services and referrals'' means the 
        provision of health care, mental health, substance 
        abuse, and other supportive services and referrals for 
        services in a noncoercive manner, which may include 
        medication management, education, counseling, job 
        training, and assistance in obtaining entitlement 
        benefits and in obtaining other supportive services 
        including mental health treatment and substance abuse 
        treatment.
          [(5) Nonprofit organization.--The term ``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.
          [(6) Operating costs.--The term ``operating costs'' 
        means expenses incurred by a recipient operating a safe 
        haven under this subtitle with respect to--
                  [(A) the operation of the facility, including 
                the cost of 24-hour management, and 
                maintenance, repair, and security;
                  [(B) utilities, fuel, furnishings, and 
                equipment for such housing; and
                  [(C) other reasonable costs necessary to the 
                operation of the facility, which may include 
                appropriate outreach and drop-in services.
          [(7) Recipient.--The term ``recipient'' means an 
        applicant that receives assistance under this subtitle.
          [(8) Safe haven.--The term ``safe haven'' means a 
        facility--
                  [(A) that provides 24-hour residence for 
                eligible persons who may reside for an 
                unspecified duration;
                  [(B) that provides private or semiprivate 
                accommodations;
                  [(C) that may provide for the common use of 
                kitchen facilities, dining rooms, and 
                bathrooms;
                  [(D) that may provide supportive services to 
                eligible persons who are not residents on a 
                drop-in basis; and
                  [(E) in which overnight occupancy is limited 
                to no more than 25 persons.
          [(9) Secretary.--The term ``Secretary'' means the 
        Secretary of Housing and Urban Development.
          [(10) Seriously mentally ill.--The term ``seriously 
        mentally ill'' means having a severe and persistent 
        mental or emotional impairment that seriously limits a 
        person's ability to live independently.
          [(11) State.--The term ``State'' means each of the 
        several States, the District of Columbia, the 
        Commonwealth of Puerto Rico, the Virgin Islands, Guam, 
        American Samoa, the Northern Mariana Islands, and 
        Palau.
          [(12) Unit of general local government.--The term 
        ``unit of general local government'' has the meaning 
        given the term in section 102(a) of the Housing and 
        Community Development Act of 1974.

[SEC. 433. PROGRAM ASSISTANCE.

  [(a) In General.--
          [(1) Eligible activities.--The Secretary may provide 
        assistance with respect to a program under this 
        subtitle for the following activities:
                  [(A) The construction of a structure for use 
                in providing a safe haven or the acquisition, 
                rehabilitation, or acquisition and 
                rehabilitation of an existing structure for use 
                in providing a safe haven.
                  [(B) The leasing of an existing structure for 
                use in providing a safe haven.
                  [(C) To cover the operating costs of a safe 
                haven.
                  [(D) To cover the costs of administering a 
                safe haven program, not to exceed 10 percent of 
                the amounts made available for activities under 
                subparagraphs (A) through (C).
                  [(E) Outreach activities designed to inform 
                eligible persons about and attract them to a 
                safe haven program.
                  [(F) The provision of low-demand services and 
                referrals for residents of a safe haven, except 
                that grants under this subtitle may not be used 
                to cover more than 50 percent of the cost of 
                such services and referrals.
                  [(G) Other activities that further the 
                purposes of this subtitle, including the 
                modification of an existing facility to use a 
                portion of the facility to provide with a safe 
                haven.
          [(2) Period of assistance.--Assistance may be 
        provided to any safe haven program for activities under 
        subparagraphs (B) through (F) of paragraph (1) for a 
        period of not more than 5 years, except that the 
        Secretary may, upon application by the recipient, 
        provide assistance for an additional period of time, 
        not to exceed 5 years, subject to--
                  [(A) the determination of the Secretary that 
                the performance of the recipient under this 
                subtitle is satisfactory; and
                  [(B) the availability of appropriations for 
                such purpose.
          [(3) Limit on amount.--The total amount of assistance 
        provided to any recipient under this subsection may not 
        exceed $400,000 in any 5-year period.
  [(b) Matching Funding.--
          [(1) In general.--Each recipient shall supplement a 
        grant provided under this subtitle with an equal amount 
        of funds from sources other than this subtitle. Each 
        recipient shall certify to the Secretary that it has 
        complied with this paragraph, and shall include with 
        the certification a description of the sources and 
        amounts of such supplemental funds.
          [(2) Calculation of amounts.--In calculating the 
        amount of supplemental funds required under paragraph 
        (1), a recipient may include any funds derived from 
        another source, the value of any lease on a building, 
        any salary paid to staff to carry out the program of 
        the recipient, and the value of the time and services 
        contributed by volunteers, at a rate determined by the 
        Secretary, to carry out the program of the recipient.

[SEC. 434. PROGRAM REQUIREMENTS.

  [(a) Applications.--Applications for assistance under this 
subtitle shall be submitted by an applicant in such form and in 
accordance with such procedures as the Secretary shall 
establish, and such applications shall contain at a minimum--
          [(1) a description of the proposed facility;
          [(2) a description of the number and characteristics 
        of the eligible persons expected to occupy the safe 
        haven;
          [(3) a plan for identifying and selecting eligible 
        persons to participate;
          [(4) a program plan, containing a description of the 
        method--
                  [(A) of operation of the facility, including 
                staffing plans and facility rules;
                  [(B) by which the applicant will secure 
                supportive services for residents of the safe 
                haven;
                  [(C) by which the applicant will monitor the 
                willingness of residents to engage in treatment 
                programs and other supportive services;
                  [(D) by which access to supportive services 
                will be secured for residents willing to use 
                them;
                  [(E) by which access to permanent housing 
                with appropriate services, such as the Shelter 
                Plus Care program under subtitle F, will be 
                sought after residents are stabilized; and
                  [(F) by which the applicant will conduct 
                outreach activities to facilitate the entrance 
                of eligible persons into the safe haven;
          [(5) a plan to ensure that adequate security 
        precautions are taken to make the facility safe for the 
        residents;
          [(6) an estimate of program costs;
          [(7) a description of the resources that are expected 
        to be made available in accordance with section 433(b);
          [(8) assurances satisfactory to the Secretary that 
        the facility will have 24-hour, on-site management, if 
        practicable;
          [(9) assurances satisfactory to the Secretary that 
        the facility will be operated for the purpose specified 
        in the application for each year in which assistance is 
        provided under this subtitle;
          [(10) a certification by the public official 
        responsible for submitting the comprehensive housing 
        affordability strategy under section 105 of the 
        Cranston-Gonzalez National Affordable Housing Act for 
        the State or unit of general local government within 
        which the facility is located that the proposed 
        activities are consistent with the approved housing 
        strategy for such jurisdiction;
          [(11) a certification that the applicant will comply 
        with the requirements of the Fair Housing Act, title VI 
        of the Civil Rights Act of 1964, section 504 of the 
        Rehabilitation Act of 1973, and the Age Discrimination 
        Act of 1975, and will affirmatively further fair 
        housing;
          [(12) a plan for program evaluation based on 
        information that is collected on a periodic basis 
        regarding the characteristics of the residents, 
        including their movement in and out ofthe safe haven, 
their willingness to use low-demand services and referrals, the 
availability and quality of services used, and the movement of 
residents toward a more traditional form of permanent housing after a 
period of residency in the safe haven; and
          [(13) such other information as the Secretary may 
        require.
  [(b) Site Control.--The Secretary shall require that an 
applicant furnish reasonable assurances that the applicant will 
have control of a site for the proposed facility not later than 
1 year after notification of an award of assistance under this 
subtitle. If an applicant fails to obtain control of the site 
within this period, the grant shall be recaptured by the 
Secretary and reallocated for use under this subtitle.
  [(c) Selection Criteria.--The Secretary shall establish 
selection criteria for selecting applicants to receive 
assistance under this subtitle pursuant to a national 
competition, which shall include--
          [(1) the extent to which the applicant demonstrates 
        the ability to develop and operate a safe haven;
          [(2) the extent to which there is a need for a safe 
        haven in the jurisdiction in which the facility will be 
        located;
          [(3) the extent to which the program would link 
        eligible persons to permanent housing and supportive 
        services after stabilization in a safe haven;
          [(4) the cost-effectiveness of the proposed program;
          [(5) providing for geographical diversity among 
        applicants selected to receive assistance;
          [(6) the extent to which the safe haven would meet 
        the need of the eligible persons proposed to be served 
        by the safe haven; and
          [(7) such other factors as the Secretary determines 
        to be appropriate for purposes of carrying out the 
        program established under this subtitle in an effective 
        and efficient manner.
  [(d) Required Agreements.--The Secretary may not provide 
assistance under this subtitle for any safe haven program 
unless the applicant agrees--
          [(1) to develop and operate the proposed facility as 
        a safe haven in accordance with the provisions of this 
        subtitle;
          [(2) to ensure that the facility meets any standards 
        of habitability established by the Secretary;
          [(3) to provide low-demand services and referrals for 
        the residents of the safe haven;
          [(4) to prohibit the use of illegal drugs and alcohol 
        in the facility;
          [(5) to ensure that adequate security precautions are 
        taken to make the facility safe for the residents;
          [(6) not to establish limitations on the duration of 
        residency;
          [(7) not to require participation in low-demand 
        services and referrals as a condition of occupancy;
          [(8) to monitor and report to the Secretary on 
        progress in carrying out the safe haven program;
          [(9) to the maximum extent practicable, to involve 
        eligible persons, through employment, volunteer 
        services, or otherwise, in renovating, maintaining, and 
        operating facilities assisted under this subtitle and 
        in providing services assisted under this subtitle;
          [(10) to provide for the participation of not less 
        than 1 homeless individual or former homeless 
        individual on the board of directors or other 
        equivalent policymaking entity of such recipient (in 
        accordance with regulations that the Secretary shall 
        issue), to the extent that such entity considers and 
        makes policies and decisions regarding any facility or 
        services assisted under this subtitle, or to otherwise 
        provide for the consultation and participation of such 
        an individual in considering and making such policies 
        and decisions; and
          [(11) to comply with such other terms and conditions 
        as the Secretary may establish for purposes of carrying 
        out the program established under this subtitle in an 
        effective and efficient manner.
The Secretary may waive the applicability of the requirement 
under paragraph (10) for an applicant that is unable to meet 
such requirement, if the applicant agrees to otherwise consult 
with homeless or formerly homeless individuals in considering 
and making such policies and decisions.

[SEC. 435. OCCUPANCY CHARGE.

  [Each eligible person who resides in a facility assisted 
under this subtitle shall pay an occupancy charge in an amount 
determined by the recipient, but not to exceed the amount 
determined under section 3(a) of the United States Housing Act 
of 1937. The occupancy charge may be phased in or reduced based 
on the type of living accommodations provided. The recipient 
may waive occupancy charges for limited periods of time for 
residents unwilling or unable to pay them. Occupancy charges 
paid may be reserved to assist residents in moving to a more 
traditional form of permanent housing.

[SEC. 436. TERMINATION OF ASSISTANCE.

  [If an eligible person who resides in a safe haven or who 
receives low-demand services or referrals endangers the safety, 
welfare, or health of other residents, or repeatedly violates a 
condition of occupancy contained in the rules for the safe 
haven (as set forth in the application submitted under this 
subtitle), the recipient may terminate such residency or 
assistance in accordance with a formal process established by 
the rules for the safe haven, which may include a hearing.

[SEC. 437. EVALUATION AND REPORT.

  [The Secretary shall conduct an evaluation of the safe haven 
demonstration program under this subtitle and shall submit a 
report to the Congress, not later than December 31, 1994, which 
shall set forth the findings of the Secretary as a result of 
the evaluation.

[SEC. 438. REGULATIONS.

  [(a) In General.--The Secretary shall, by notice published in 
the Federal Register, establish such requirements as may be 
necessary to carry out the amendments made by this subtitle.
  [(b) Consultation.--In establishing requirements to carry out 
the provisions of this subtitle, and in considering 
applicationsunder this subtitle, the Secretary shall consult 
with officials of the appropriate agencies of the Department of Health 
and Human Services and with representative provider and public interest 
groups.
  [(c) Eligibility for SSI and Medicaid.--
          [(1) Supplemental security income.--All provisions of 
        the Supplemental Security Income program under title 
        XVI of the Social Security Act and of State programs in 
        supplementation thereof shall apply to participants in 
        the safe havens demonstration program under this 
        subtitle, except that no individual living in a safe 
        haven shall--
                  [(A) be considered an inmate of a public 
                institution (as provided in section 
                1611(e)(1)(A) of such Act); or
                  [(B) have benefits under such title XVI 
                reduced or terminated because of the receipt of 
                support and maintenance (as provided in section 
                1612(a)(2)(A) of such Act), to the extent such 
                support and maintenance is received as a result 
                of participation in the safe havens 
                demonstration program.
          [(2) Medicaid.--A safe haven shall not be considered 
        a hospital, nursing facility, institution for mental 
        disease as defined under section 1905(i) of the Social 
        Security Act, or any other inpatient facility, for 
        purposes of the program under title XIX of such Act, 
        and individuals shall not be denied eligibility for 
        medicaid because of residency in such residence.

[SEC. 439. AUTHORIZATION OF APPROPRIATIONS.

  [There are authorized to be appropriated to carry out this 
subtitle $62,000,000 for fiscal year 1993 and $64,604,000 for 
fiscal year 1994.

                 [Subtitle E--Miscellaneous Provisions

[SEC. 441. SECTION 8 ASSISTANCE FOR SINGLE ROOM OCCUPANCY DWELLINGS.

  [(a) Increase in Budget Authority.--The budget authority 
available under section 5(c) of the United States Housing Act 
of 1937 for assistance under section 8(e)(2) of such Act is 
authorized to be increased by $105,000,000 on or after October 
1, 1992, and by $109,410,000 on or after October 1, 1993.
  [(b) Use of Funds.--The amounts made available under this 
section shall be used only in connection with the moderate 
rehabilitation of housing described in section 8(n) of the 
United States Housing Act of 1937 for occupancy by homeless 
individuals, except that amounts made available under this 
section may be used in connection with the moderate 
rehabilitation of efficiency units if the building owner agrees 
to pay the additional cost of rehabilitating and operating such 
units, and except that the Secretary may provide amounts 
available under this section to private nonprofit organizations 
that submit applications for such assistance that are approved 
by the Secretary.
  [(c) Allocation.--The amounts made available under this 
section shall be allocated by the Secretary of Housing and 
Urban Development on the basis of a national competition to the 
applicants that best demonstrate a need for the assistance 
under this section and the ability to undertake and carry out a 
program to be assisted under this section. To be considered for 
assistance under this section, an applicant shall submit to the 
Secretary of Housing and Urban Development a written proposal 
containing--
          [(1) a description of the size and characteristics of 
        the population within the applicant's jurisdiction that 
        would occupy single room occupancy dwellings;
          [(2) a listing of additional commitments from public 
        and private sources that the applicant might be able to 
        provide in connection with the program;
          [(3) an inventory of suitable housing stock to be 
        rehabilitated with such assistance;
          [(4) a description of the interest that has been 
        expressed by builders, developers, and others 
        (including profit and nonprofit organizations) in 
        participating in the program; and
          [(5) assurances satisfactory to the Secretary that 
        the applicant, to the maximum extent practicable, will 
        involve homeless individuals and families, through 
        employment, volunteer services, or otherwise, in 
        rehabilitating and operating facilities assisted under 
        this section and in providing services for occupants of 
        such facilities.
No single city or urban county shall be eligible to receive 
more than 10 percent of the assistance made available under 
this section.
  [(d) Fire and Safety Improvements.--Each contract for housing 
assistance payments entered into with the authority provided 
under this section shall require the installation of a 
sprinkler system that protects all major spaces, hard wired 
smoke detectors, and such other fire and safety improvements as 
may be required by state or local law. For purposes of this 
subsection, the term ``major spaces'' means hallways, large 
common areas, and other areas specified in local fire, 
building, or safety codes.
  [(e) Cost Limitation.--
          [(1) The total cost of rehabilitation that may be 
        compensated for in a contract for housing assistance 
        payments entered into with the authority provided under 
        this section shall not exceed $14,000 per unit, plus 
        the expenditures required by subsection (d).
          [(2) The Secretary of Housing and Urban Development 
        shall increase the limitation contained in paragraph 
        (1) by an amount the Secretary determines is reasonable 
        and necessary to accommodate special local conditions, 
        including--
                  [(A) high construction costs; or
                  [(B) stringent fire or building codes.
          [(3) The Secretary of Housing and Urban Development 
        shall increase the limitation in paragraph (1) on 
        October 1 of each year by an amount necessary to take 
        into account increases in construction costs during the 
        previous 12-month period.
  [(f) Contract Requirements.--Each contract for annual 
contributions entered into with an approved applicant to 
obligate the authority made available under this section 
shall--
          [(1) commit the Secretary of Housing and Urban 
        Development to make such authority available to the 
        approved applicant for an aggregate period of 10 years, 
        and require that any amendments increasing such 
        authority shall be available for the remainder of such 
        10-year period;
          [(2) provide the Secretary of Housing and Urban 
        Development with the option to renew the contract for 
        an additional period of 10 years, subject to the 
        availability of appropriations; and
          [(3) provide that, notwithstanding any other 
        provision of law, first priority for occupancy of 
        housing rehabilitated under this section shall be given 
        to homeless individuals.
    [(g) Applicability to Indian Housing Authorities.--Amounts 
made available for assistance under this section shall be 
available through contracts between the Secretary and Indian 
housing authorities, and the provisions of this section 
regarding public housing authorities shall include and apply to 
Indian housing authorities.
  [(h) Participation of Homeless Individuals.--The Secretary 
shall, by regulation, require each approved applicant receiving 
assistance under this section that is not a public housing 
agency or Indian housing authority to provide for the 
participation of not less than one homeless individual or 
former homeless individual on the board of directors or other 
equivalent policymaking entity of such applicant, to the extent 
that such entity considers and makes policies and decisions 
regarding the rehabilitation of any housing with assistance 
under this section. The Secretary may grant waivers to approved 
applicants unable to meet the requirements under the preceding 
sentence if the applicant agrees to otherwise consult with 
homeless or formerly homeless individuals in considering and 
making such policies and decisions.
  [(i) Termination of Assistance.--If an individual or family 
who receives assistance under this section violates program 
requirements, the recipient of amounts made available under 
this section may terminate assistance in accordance with a 
formal process established by the recipient that recognizes the 
rights of individuals receiving such assistance to due process 
of law.
  [(j) Definitions.--For purposes of this section--
          [(1) the term ``applicant'' means a public housing 
        agency, Indian housing authority, or private nonprofit 
        organization that applies for assistance under this 
        section; and
          [(2) 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.

[SEC. 442. COMMUNITY DEVELOPMENT BLOCK GRANT AMENDMENT.

  [Section 102(a)(6) of the Housing and Community Development 
Act of 1974 is amended in the second sentence by inserting ``or 
1984'' after ``fiscal year 1983''.

[SEC. 443. ADMINISTRATIVE PROVISIONS.

    [The provisions of, and regulations and procedures 
applicable under, section 104(g) of the Housing and Community 
Development Act of 1974 shall apply to assistance and projects 
under this title.

                 [Subtitle F--Shelter Plus Care Program

                     [PART I--GENERAL REQUIREMENTS

[SEC. 451. PURPOSE.

    [The purpose of the program authorized under this subtitle 
is to provide rental housing assistance, in connection with 
supportive services funded from sources other than this 
subtitle, to homeless persons with disabilities (primarily 
persons who are seriously mentally ill, have chronic problems 
with alcohol, drugs, or both, or have acquired immunodeficiency 
syndrome and related diseases) and the families of such 
persons.

[SEC. 452. RENTAL HOUSING ASSISTANCE.

    [(a) In General.--The Secretary is authorized, in 
accordance with the provisions of this subtitle, to provide 
rental housing assistance under parts II, III, IV, and V.
    [(b) Funding Limitations.--To the maximum extent 
practicable, the Secretary shall reserve not less than 50 
percent of all funds provided under this subtitle for homeless 
individuals who are seriously mentally ill or have chronic 
problems with alcohol, drugs, or both.

[SEC. 453. SUPPORTIVE SERVICES REQUIREMENTS.

    [(a) Matching Funding.--
          [(1) In general.--Each recipient shall be required to 
        supplement the assistance provided under this subtitle 
        with an equal amount of funds for supportive services 
        from sources other than this subtitle. Each recipient 
        shall certify to the Secretary its compliance with this 
        paragraph, and shall include with the certification a 
        description of the sources and amounts of such 
        supplemental funds.
          [(2) Determination of matching amounts.--In 
        calculating the amount of supplemental funds provided 
        under this subtitle, a recipient may include the value 
        of any lease on a building, any salary paid to staff to 
        carry out the program of the recipient, and the value 
        of the time and services contributed by volunteers to 
        carry out the program of the recipient at a rate 
        determined by the Secretary.
    [(b) Recapture.--If the supportive services and funding for 
the supportive services required by this section are not 
provided, the Secretary may recapture any unexpended housing 
assistance.

[SEC. 454. APPLICATIONS.

    [(a) In General.--An application for rental housing 
assistance under this subtitle shall be submitted by an 
applicant in such forms and in accordance with such procedures 
as the Secretary shall establish.
    [(b) Minimum Contents.--The Secretary shall require that an 
application identify the need for the assistance in the 
community to be served and shall contain at a minimum--
          [(1) a request for housing assistance under part II, 
        III, IV, or V, or a combination, specifying the number 
        of units requested and the amount of necessary budget 
        authority;
          [(2) a description of the size and characteristics of 
        the population of eligible persons;
          [(3) an identification of the need for the program in 
        the community to be served;
          [(4) the identity of the proposed service provider or 
        providers (which may be, or include, the applicant) and 
        a statement of the qualifications of the provider or 
        providers;
          [(5) a description of the supportive services that 
        the applicant proposes to assure will be available for 
        eligible persons;
          [(6) a description of the resources that are expected 
        to be made available to provide the supportive services 
        required by section 453;
          [(7) a description of the mechanisms for developing a 
        housing and supportive services plan for each person 
        and for monitoring each person's progress in meeting 
        that plan;
          [(8) reasonable assurances satisfactory to the 
        Secretary that the supportive services will be provided 
        for the full term of the housing assistance under part 
        II, III, IV, or V, or a combination; and a 
        certification from the applicant that it will fund the 
        supportive services itself if the planned resources do 
        not become available for any reason;
          [(9) a certification by the public official 
        responsible for submitting the comprehensive housing 
        affordability strategy under section 105 of the 
        Cranston-Gonzalez National Affordable Housing Act that 
        the proposed activities are consistent with the 
        approved housing strategy of the unit of general local 
        government within which housing assistance under this 
        subtitle will be provided;
          [(10) a plan for--
                  [(A) in the case of rental housing assistance 
                under part II, or III, providing housing 
                assistance;
                  [(B) identifying and selecting eligible 
                persons to participate, including a proposed 
                definition of the term ``chronic problems with 
                alcohol, other drugs, or both'';
                  [(C) coordinating the provision of housing 
                assistance and supportive services;
                  [(D) ensuring that the service providers are 
                providing supportive services adequate to meet 
                the needs of the persons served;
                  [(E) obtaining participation of eligible 
                persons who have previously not been assisted 
                under programs designed to assist the homeless 
                or have been considered not capable of 
                participation in these programs; this plan 
                shall specifically address how homeless 
                persons, as defined in section 103(a)(2)(C), 
                (and the families of such persons) will be 
                brought into the program;
          [(11) in the case of housing assistance under part V, 
        identification of the specific structures that the 
        recipient is proposing for assistance; and
          [(12) in the case of housing assistance under part 
        IV, identification of the nonprofit entity that will be 
        the owner or lessor of the property, and identification 
        of the specific structures in which the nonprofit 
        entity proposes to house eligible persons.

[SEC. 455. SELECTION CRITERIA.

    [(a) In General.--The Secretary shall establish selection 
criteria for a national competition for assistance under this 
subtitle, which shall include--
          [(1) the ability of the applicant to develop and 
        operate the proposed assisted housing and supportive 
        services program, taking into account the quality of 
        any ongoing program of the applicant;
          [(2) geographic diversity among the projects to be 
        assisted;
          [(3) the need for a program providing housing 
        assistance and supportive services for eligible persons 
        in the area to be served;
          [(4) the quality of the proposed program for 
        providing supportive services and housing assistance;
          [(5) the extent to which the proposed funding for the 
        supportive services is or will be available;
          [(6) the extent to which the project would meet the 
        needs of the homeless persons proposed to be served by 
        the program;
          [(7) the extent to which the program integrates 
        program recipients into the community served by the 
        program;
          [(8) the cost-effectiveness of the proposed program; 
        and
          [(9) such other factors as the Secretary specifies in 
        regulations to be appropriate for purposes of carrying 
        out the program established by this subtitle in an 
        effective and efficient manner.
    [(b) Funding Limitation.--No more than 10 percent of the 
assistance made available under this subtitle for any fiscal 
year may be used for programs located within any one unit of 
general local government.
  [(c) Participation of Homeless Individuals.--The Secretary 
shall, by regulation, require each recipient to provide for the 
consultation and participation of not less than one homeless 
individual or former homeless individual on the board of 
directors or other equivalent policymaking entity of the 
recipient, to the extent that such entity considers and makes 
policies and decisions regarding any housing assisted under 
this subtitle or services for such housing. The Secretary may 
grant waivers to recipients unable to meet the requirement 
under the preceding sentence if the recipient agrees to 
otherwise consult with homeless or formerly homeless 
individuals in considering and making such policies and 
decisions.

[SEC. 456. REQUIRED AGREEMENTS.

    [The Secretary may not approve assistance under this 
subtitle unless the applicant agrees--
          [(1) to operate the proposed program in accordance 
        with the provisions of this subtitle;
          [(2) to conduct an ongoing assessment of the housing 
        assistance and supportive services required by the 
        participants in the program;
          [(3) to assure the adequate provision of supportive 
        services to the participants in the program;
          [(4) to comply with such other terms and conditions 
        as the Secretary may establish for purposes of carrying 
        out the program in an effective and efficient manner; 
        and
          [(5) to the maximum extent practicable, to involve 
        homeless individuals and families, through employment 
        volunteer services, or otherwise, in constructing or 
        rehabilitating housing assisted under this subtitle and 
        in providing services required under this subtitle.

[SEC. 457. HOUSING STANDARDS AND RENT REASONABLENESS.

  [(a) Standards Required.--The Secretary shall require that--
          [(1) before any assistance may be provided to or on 
        behalf of the person, each unit shall be inspected by 
        the applicant directly or by another entity, including 
        the local public housing agency, to determine that the 
        unit meets the housing quality standards under section 
        8 of the United States Housing Act of 1937 and that the 
        occupancy charge for the dwelling unit is reasonable; 
        and
          [(2) the recipient shall make at least annual 
        inspections of each unit during the contract term.
    [(b) Prohibition.--No assistance may be provided for a 
dwelling unit (1) for which the occupancy charge is not 
reasonable, or (2) which fails to meet the housing standards, 
unless the owner promptly corrects the deficiency and the 
recipient verifies the correction.

[SEC. 458. TENANT RENT.

    [Each tenant shall pay as rent an amount determined in 
accordance with the provisions of section 3(a)(1) of the United 
States Housing Act of 1937.

[SEC. 459. ADMINISTRATIVE FEES.

    [From amounts made available under appropriations Acts, the 
Secretary shall make amounts available to pay the entity 
administering the housing assistance an administrative fee in 
an amount determined appropriate by the Secretary for the costs 
of administering the housing assistance.

[SEC. 460. OCCUPANCY.

  [(a) Occupancy Agreement.--The occupancy agreement between a 
tenant and an owner of a dwelling unit assisted under this 
subtitle shall be for at least one month.
  [(b) Vacancy Payments.--If an eligible person vacates a 
dwelling unit assisted under this subtitle before the 
expiration of the occupancy agreement, no assistance payment 
may be made with respect to the unit after the month that 
follows the month during which the unit was vacated, unless it 
is occupied by another eligible person.

[SEC. 461. TERMINATION OF ASSISTANCE.

    [(a) Authority.--If an eligible individual who receives 
assistance under this subtitle violates program requirements, 
the recipient may terminate assistance in accordance with the 
process established pursuant to subsection (b).
    [(b) Procedure.--In terminating assistance under this 
section, the recipient shall provide a formal process that 
recognizes the rights of individuals receiving such assistance 
to due process of law.

[SEC. 462. DEFINITIONS.

    [For purposes of this subtitle:
          [(1) The term ``acquired immunodeficiency syndrome 
        and related diseases'' has the meaning given such term 
        in section 853 of the Cranston-Gonzalez National 
        Affordable Housing Act.
          [(2) The term ``applicant'' means a State, unit of 
        general local government, Indian tribe, or public 
        housing agency.
          [(3) The term ``eligible person'' means a homeless 
        person with disabilities (primarily persons who are 
        seriously mentally ill, have chronic problems with 
        alcohol, drugs, or both, or have acquired 
        immunodeficiency syndrome and related diseases) and the 
        family of such a person.
          [(4) The term ``Indian tribe'' has the meaning given 
        such term in section 102 of the Housing and Community 
        Development Act of 1974.
          [(5) The term ``nonprofit organization'' has the 
        meaning given such term by section 104 of the Cranston-
        Gonzalez National Affordable Housing Act, and includes 
        community mental health centers established as public 
        nonprofit organizations.
          [(6) The term ``person with disabilities'' has the 
        same meaning given the term in section 811 of the 
        Cranston-Gonzalez National Affordable Housing Act.
          [(7) The term ``public housing agency'' has the 
        meaning given such term in section 3(b)(6) of the 
        United States Housing Act of 1937.
          [(8) The term ``recipient'' means an applicant 
        approved for participation in the program authorized 
        under this subtitle.
          [(9) The term ``Secretary'' means the Secretary of 
        Housing and Urban Development.
          [(10) The term ``seriously mentally ill'' means 
        having a severe and persistent mental or emotional 
        impairment that seriously limits a person's ability to 
        live independently.
          [(11) The term ``State'' means each of the several 
        States, the District of Columbia, the Commonwealth of 
        Puerto Rico, the Virgin Islands, Guam, American Samoa, 
        the Northern Mariana Islands, the Trust Territory of 
        the Pacific Islands, and any other territory or 
        possession of the United States.
          [(12) The term ``supportive services'' means 
        assistance that the Secretary determines (A) addresses 
        the special needs of eligible persons; and (B) provides 
        appropriate services or assists such persons in 
        obtaining appropriate services, including health care, 
        mental health services, substance and alcohol abuse 
        services, child care services, case management 
        services, counseling, supervision, education, job 
        training, and other services essential for achieving 
        and maintaining independent living. Inpatient acute 
        hospital care shall not qualify as a supportive 
        service.
          [(13) The term ``unit of general local government'' 
        has the meaning given such term in section 102 of the 
        Housing and Community Development Act of 1974.

[SEC. 463. AUTHORIZATION OF APPROPRIATIONS.

  [(a) In General.--For purposes of the housing programs under 
this subtitle, there are authorized to be appropriated 
$266,550,000 for fiscal year 1993 and $277,745,100 for fiscal 
year 1994. Of any amount appropriated in any fiscal year to 
carry out this subtitle--
          [(1) not less than 10 percent shall be available only 
        for carrying out part II of this subtitle;
          [(2) not less than 10 percent shall be available only 
        for carrying out part III of this subtitle;
          [(3) not less than 10 percent shall be available only 
        for carrying out part IV of this subtitle; and
          [(4) not less than 10 percent shall be available only 
        for carrying out part V of this subtitle.
    [(b) Availability.--Sums appropriated under this section 
shall remain available until expended.

                [PART II--TENANT-BASED RENTAL ASSISTANCE

[SEC. 471. AUTHORITY.

  [The Secretary may use amounts made available under section 
463 to provide tenant-based rental housing assistance for 
eligible persons in accordance with this part.

[SEC. 472. HOUSING ASSISTANCE.

    [An eligible person on behalf of whom assistance is 
provided under this part shall select the unit in which such 
person will live using rental assistance under this part; 
except that where necessary to assure that the provision of 
supportive services to persons is feasible, a recipient may 
require that a person participating in the program live (1) in 
a particular structure or unit for up to the first year of 
participation, and (2) within a particular geographic area for 
the full period of participation or the period remaining after 
the period referred to in paragraph (1).

[SEC. 473. AMOUNT OF ASSISTANCE.

    [The contract with a recipient for assistance under this 
part shall be for a term of 5 years. Each contract shall 
provide that the recipient shall receive aggregate amounts not 
to exceed the appropriate existing housing fair market rent 
limitation under section 8(c) of the United States Housing Act 
of 1937 in effect at the time the application is approved. At 
the option of the recipient and subject to the availability of 
such amounts, the recipient may receive in any year (1) up to 
25 percent of such amounts or (2) such higher percentage as the 
Secretary may approve upon a demonstration satisfactory to the 
Secretary that the recipient has entered into firm financial 
commitments to ensure that the housing assistance described in 
the application will be provided for the full term of 
thecontract. Any amounts not needed for a year may be used to increase 
the amount available in subsequent years.

               [PART III--PROJECT-BASED RENTAL ASSISTANCE

[SEC. 476. AUTHORITY.

  [The Secretary may use amounts made available under section 
463 to provide project-based rental housing assistance for 
eligible persons in accordance with this part.

[SEC. 477. HOUSING ASSISTANCE.

  [Assistance under this part shall be provided pursuant to a 
contract between the recipient and an owner of an existing 
structure. The contract shall provide 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.

[SEC. 478. TERM OF CONTRACT AND AMOUNT OF ASSISTANCE.

  [(a) Term of Contract.--Each contract with a recipient for 
assistance under this part shall be for a term of 5 years, and 
the owner shall have an option to renew the assistance for an 
additional 5-year term, subject to the availability of amounts 
provided in appropriation Acts; except that if an expenditure 
of at least $3,000 for each unit (including its prorated share 
of work on common areas or systems) is required to make the 
structure decent, safe, and sanitary, and the owner agrees to 
carry out the rehabilitation with resources other than 
assistance under this subtitle within 12 months of notification 
of grant approval, the contract shall be for a term of 10 
years.
  [(b) Amount of Assistance.--Each contract shall provide that 
the recipient shall receive aggregate amounts not to exceed the 
appropriate existing housing fair market rental under section 
8(c)(1) of the United States Housing Act of 1937 in effect at 
the time the application is approved. Any amounts not needed 
for a year may be used to increase the amount available in 
subsequent years.

               [PART IV--SPONSOR-BASED RENTAL ASSISTANCE

[SEC. 481. AUTHORITY.

  [The Secretary may use amounts made available under section 
463 to provide sponsor-based rental assistance for eligible 
persons in accordance with this part.

[SEC. 482. HOUSING ASSISTANCE.

  [Assistance under this part shall be provided pursuant to a 
contract between the recipient and a private nonprofit sponsor 
that owns or leases dwelling units. The contract shall provide 
that rental assistance payments shall be made to the sponsor 
and that such assisted units shall be occupied by eligible 
persons.

[SEC. 483. TERM OF CONTRACT AND AMOUNT OF ASSISTANCE.

  [(a) Term of Contract.--The contract with a recipient of 
assistance under this part shall be for a term of 5 years.
  [(b) Amount of Assistance.--Each contract shall provide that 
the recipient shall receive aggregate amounts not to exceed the 
appropriate existing housing fair market rental under section 
8(c)(1) of the United States Housing Act of 1937 in effect at 
the time the application is approved. Any amounts not needed 
for a year may be used to increase the amount available in 
subsequent years.

 [PART V--SECTION 8 MODERATE REHABILITATION ASSISTANCE FOR SINGLE-ROOM 
                          OCCUPANCY DWELLINGS

[SEC. 486. AUTHORITY.

  [The Secretary may use amounts made available under section 
463 in connection with the moderate rehabilitation of single 
room occupancy housing described in section 8(n) of the United 
States Housing Act of 1937 for occupancy by eligible persons in 
accordance with this part. Amounts available under section 463 
may be used in connection with the moderate rehabilitation of 
efficiency units if the building owner agrees to pay the 
additional cost of rehabilitating and operating the efficiency 
units.

[SEC. 487. FIRE AND SAFETY IMPROVEMENTS.

  [Each contract for housing assistance payments entered into 
under this part shall require the installation of a sprinkler 
system that protects all major spaces, hard-wired smoke 
detectors, and any other fire safety improvements as may be 
required by State or local law. For purposes of this section, 
the term ``major spaces'' means hallways, large common areas, 
and other areas specified in local fire, building, or safety 
codes.

[SEC. 488. CONTRACT REQUIREMENTS.

  [Each contract for annual contributions entered into by the 
Secretary with a public housing agency to obligate the 
authority made available under section 463 for use under this 
part shall--
          [(1) commit the Secretary to make the authority 
        available to the public housing agency for an aggregate 
        period of 10 years, and require that any amendments 
        increasing the authority shall be available for the 
        remainder of such 10-year period;
          [(2) provide the Secretary with the option to renew 
        the contract for an additional period of 10 years, 
        subject to the availability of authority; and
          [(3) provide that, notwithstanding any other 
        provision of law, first priority for occupancy of 
        housing rehabilitated under this part shall be given to 
        homeless persons.

             [Subtitle G--Rural Homeless Housing Assistance

[SEC. 491. RURAL HOMELESSNESS GRANT PROGRAM.

  [(a) Establishment.--The Secretary of Housing and Urban 
Development shall establish and carry out a rural homelessness 
grant program. In carrying out the program, the Secretary may 
award grants to eligible organizations in order to pay for the 
Federal share of the cost of--
          [(1) assisting programs providing direct emergency 
        assistance to homeless individuals and families;
          [(2) providing homelessness prevention assistance to 
        individuals and families at risk of becoming homeless; 
        and
          [(3) assisting individuals and families in obtaining 
        access to permanent housing and supportive services.
  [(b) Use of Funds.--
          [(1) In general.--An eligible organization may use a 
        grant awarded under subsection (a) to provide, in rural 
        areas--
                  [(A) rent, mortgage, or utility assistance 
                after 2 months of nonpayment in order to 
                prevent eviction, foreclosure, or loss of 
                utility service;
                  [(B) security deposits, rent for the first 
                month of residence at a new location, and 
                relocation assistance;
                  [(C) short-term emergency lodging in motels 
                or shelters, either directly or through 
                vouchers;
                  [(D) transitional housing;
                  [(E) rehabilitation and repairs such as 
                insulation, window repair, door repair, roof 
                repair, and repairs that are necessary to make 
                premises habitable;
                  [(F) development of comprehensive and 
                coordinated support services that use and 
                supplement, as needed, community networks of 
                services, including--
                          [(i) outreach services to reach 
                        eligible recipients;
                          [(ii) case management;
                          [(iii) housing counseling;
                          [(iv) budgeting;
                          [(v) job training and placement;
                          [(vi) primary health care;
                          [(vii) mental health services;
                          [(viii) substance abuse treatment;
                          [(ix) child care;
                          [(x) transportation;
                          [(xi) emergency food and clothing;
                          [(xii) family violence services;
                          [(xiii) education services;
                          [(xiv) moving services;
                          [(xv) entitlement assistance; and
                          [(xvi) referrals to veterans services 
                        and legal services; and
                  [(G) costs associated with making use of 
                Federal inventory property programs to house 
                homeless families, including the program 
                established under title V of the Stewart B. 
                McKinney Homeless Assistance Act and the Single 
                Family Property Disposition Program established 
                pursuant to section 204(g) of the National 
                Housing Act.
          [(2) Capacity building activities.--Not more than 20 
        percent of the funds appropriated under subsection 
        (l)(1) for a fiscal year may be used by eligible 
        organizations for capacity building activities, 
        including payment of operating costs and staff 
        retention.
  [(c) Award of Grants.--
          [(1) Communities with populations of less than 
        10,000.--
                  [(A) Set aside.--In awarding grants under 
                subsection (a) for a fiscal year, the Secretary 
                shall make available not less than 50 percent 
                of the funds appropriated under subsection 
                (l)(1) for the fiscal year for grants to 
                eligible organizations serving communities that 
                have populations of less than 10,000.
                  [(B) Priority within set aside.--In awarding 
                grants in accordance with subparagraph (A), the 
                Secretary shall give priority to eligible 
                organizations serving communities with 
                populations of less than 5,000.
          [(2) Communities without significant federal 
        assistance.--In awarding grants under subsection (a), 
        including grants awarded in accordance with paragraph 
        (1), the Secretary shall give priority to eligible 
        organizations serving communities not currently 
        receiving significant Federal assistance under this 
        Act.
          [(3) State limit.--In awarding grants under 
        subsection (a) for a fiscal year, the Secretary shall 
        not award to eligible organizations within a State an 
        aggregate sum of more than 10 percent of the funds 
        appropriated under subsection (l)(1), for the fiscal 
        year.
  [(d) Application.--In order to be eligible to receive a grant 
under subsection (a), an organization shall submit an 
application to the Secretary at such time, in such manner, and 
containing such information as the Secretary may require. The 
application shall include, at a minimum--
          [(1) a description of the target population and 
        geographic area to be served;
          [(2) a description of the types of assistance to be 
        provided;
          [(3) an assurance that the assistance to be provided 
        is closely related to the identified needs of the 
        target population;
          [(4) a description of the existing assistance 
        available to the target population, including Federal, 
        State, and local programs, and a description of the 
        manner in which the organization will coordinate with 
        and expand existing assistance or provide assistance 
        not available in the immediate area;
          [(5) an agreement by the organization that the 
        organization will collect data on the projects 
        conducted by the organization, including assistance 
        provided, number and characteristics of persons served, 
        and causes of homelessness for persons served; and
          [(6) an agreement by the organization that, to the 
        maximum extent practicable, the organization will 
        involve homeless individuals and families through 
        employment, volunteer services,and otherwise, in 
providing, operating, and rehabilitating housing assisted under this 
section and in providing services assisted under this section and 
services for occupants of housing assisted under this section.
  [(e) Eligible Organizations.--Organizations eligible to 
receive a grant under subsection (a) shall include private 
nonprofit entities, Indian tribes (as such term is defined in 
section 102(a) of the Housing and Community Development Act of 
1974), and county and local governments.
  [(f) Federal Share.--
          [(1) In general.--The Federal share of the costs of 
        providing assistance under this section shall be 75 
        percent.
          [(2) Non-federal share.--The non-Federal share of the 
        cost of providing the assistance shall be in cash or in 
        kind, fairly evaluated, including plant, equipment, 
        staff services, or services delivered by volunteers.
  [(g) Participation of Homeless Individuals.--The Secretary 
shall, by regulation, require each eligible organization 
receiving a grant under this section to provide for the 
participation of not less than 1 homeless individual or former 
homeless individual on the board of directors or other 
equivalent policy making entity of the recipient, to the extent 
that such entity considers and makes policies and decisions 
regarding any housing, services, or other assistance of the 
eligible organization receiving the grant under this section. 
The Secretary may grant waivers to recipients unable to meet 
the requirement under the preceding sentence if the recipient 
agrees to otherwise consult with homeless or formerly homeless 
individuals in considering and making such policies and 
decisions.
  [(h) Evaluation.--
          [(1) In general.--The Secretary shall conduct an 
        evaluation of the program to--
                  [(A) determine the effectiveness of the 
                program in providing housing and other 
                assistance to homeless persons in the area 
                served; and
                  [(B) determine the types of assistance needed 
                to address homelessness in rural areas.
          [(2) Report.--The Secretary shall submit to Congress, 
        not later than 18 months after the date on which the 
        Secretary first makes grants under the program, the 
        evaluation of the program conducted under paragraph 
        (1), including recommendations for any Federal 
        administrative or legislative changes that may be 
        necessary to improve the ability of rural communities 
        to prevent and respond to homelessness.
  [(i) Technical Assistance.--The Secretary shall provide 
technical assistance to eligible organizations in developing 
programs in accordance with this section, and in gaining access 
to other Federal resources that may be used to assist homeless 
persons in rural areas. Such assistance may be provided through 
regional workshops, and may be provided directly or through 
grants to, or contracts with, nongovernmental entities.
  [(j) Termination of Assistance.--If an individual or family 
who receives assistance under this section violates 
requirements of the assistance program provided by the 
organization receiving a grant under this section, the 
organization may terminate assistance in accordance with a 
formal process established by the organization that recognizes 
the rights of individuals receiving such assistance to due 
process of law, which may include a hearing.
  [(k) Definitions.--
  [For purposes of this section:
          [(1) Program.--The term ``program'' means the rural 
        homelessness grant program established under this 
        section.
          [(2) Rural area; rural community.--The terms ``rural 
        area'' and ``rural community'' mean--
                  [(A) any area or community, respectively, no 
                part of which is within an area designated as a 
                standard metropolitan statistical area by the 
                Office of Management and Budget; or
                  [(B) any area or community, respectively, 
                that is--
                          [(i) within an area designated as a 
                        metropolitan statistical area or 
                        considered as part of a metropolitan 
                        statistical area; and
                          [(ii) located in a rural census 
                        tract.
          [(3) Secretary.--The term ``Secretary'' means the 
        Secretary of Housing and Urban Development.
  [(l) Authorization of Appropriations.--
          [(1) In general.--There are authorized to be 
        appropriated to carry out this section $30,000,000 for 
        fiscal year 1993 and $31,260,000 for fiscal year 1994.
          [(2) Availability.--Any amount paid to a grant 
        recipient for a fiscal year that remains unobligated at 
        the end of the year shall remain available to the 
        recipient for the purposes for which the payment was 
        made for the next fiscal year. The Secretary shall take 
        such action as may be necessary to recover any amount 
        not obligated by the recipient at the end of the second 
        fiscal year, and shall redistribute the amount to 
        another eligible organization.

[SEC. 592. USE OF FMHA INVENTORY FOR TRANSITIONAL HOUSING FOR HOMELESS 
                    PERSONS AND FOR TURNKEY HOUSING.

  [(a) In General.--The Secretary of Agriculture (in this 
section referred to as the ``Secretary'') shall, on a priority 
basis, lease or sell program and nonprogram inventory 
properties held by the Secretary under title V of the Housing 
Act of 1949--
          [(1) to provide transitional housing; and
          [(2) to provide turnkey housing for tenants of such 
        transitional housing and for eligible families.
  [(b) Priority.--The priority uses of inventory property under 
this section shall not have a higher priority than--
          [(1) the disposition of such property by sale to 
        eligible families; or
          [(2) the disposition of such property by transfer for 
        use as rental housing by eligible families.
  [(c) Transitional Housing.--
          [(1) Leases authorized.--The Secretary shall lease 
        inventory properties to public agencies and nonprofit 
        organizations to provide transitional housing for 
        homeless families and individuals and to provide such 
        agencies the option to provide turnkey housing 
        opportunities for homeless persons and other 
        inadequately housed families.
          [(2) Rental to eligible families.--A public agency or 
        nonprofit organization may rent housing leased to it 
        under paragraph (1) to a family for up to 10 years and 
        may, during that period, assist the tenant in obtaining 
        a loan and credit assistance under title V of the 
        Housing Act of 1949 to purchase the housing from the 
        Secretary.
  [(d) Lease Procedures.--
          [(1) Identification of property.--Upon receipt by the 
        Secretary of written notification from a public agency 
        or nonprofit organization that it proposes to lease a 
        property for the purpose of providing transitional 
        housing or for the purpose of providing transitional 
        housing and turnkey housing opportunities, the 
        Secretary shall--
                  [(A) withdraw the property from the market 
                for not more than 30 days for the purpose of 
                negotiations under subparagraph (B);
                  [(B) negotiate a lease agreement with the 
                organization or agency; and
                  [(C) if a lease is agreed to, commence the 
                repairs necessary to make the property meet 
                standards for decent, safe, and sanitary 
                housing.
          [(2) Lease terms.--A lease of inventory property 
        under this section shall--
                  [(A) be for a period of not more than 10 
                years;
                  [(B) provide for the payment of $1 for the 
                10-year lease; and
                  [(C) provide the nonprofit organization or 
                public agency--
                          [(i) the right to use the property 
                        for transitional housing; and
                          [(ii) the option to arrange for the 
                        sale of the property to an eligible 
                        purchaser.
  [(e) Purchase Procedures.--
          [(1) Identification of property.--Upon receipt by the 
        Secretary of written notification from a public agency 
        or nonprofit organization that it proposes to purchase 
        a property for the purpose of providing transitional 
        housing or for the purpose of providing transitional 
        housing and turnkey housing opportunities, the 
        Secretary shall--
                  [(A) withdraw the property from the market 
                for not more than 30 days for the purpose of 
                negotiations under subparagraph (B);
                  [(B) negotiate a purchase agreement with the 
                organization or agency; and
                  [(C) if a purchase agreement is agreed to, 
                commence the repairs necessary to make the 
                property meet standards for decent, safe, and 
                sanitary housing.
          [(2) Purchase terms.--A purchase of inventory 
        property under this section shall provide for a 
        purchase price equal to not more than the fair market 
        value of the property minus 10 percent.
  [(f) Employment of Homeless Individuals.--A public agency or 
nonprofit organization may lease or purchase property under 
this section only if the agency or organization, to the maximum 
extent practicable, involves homeless individuals and families, 
through employment, volunteer services, or otherwise, in 
maintaining, operating, and renovating any properties leased or 
acquired under this section and in providing any services for 
occupants of properties assisted under this section.
  [(g) Participation of Homeless Individuals.--
          [(1) In general.--The Secretary shall, by regulation, 
        require each public agency and nonprofit organization 
        leasing or purchasing property under this section to 
        provide for the participation of not less than 1 
        homeless individual or former homeless individual on 
        the board of directors or other equivalent policy 
        making entity of such agency or organization, to the 
        extent that such organization or applicant considers 
        and makes policies and decisions regarding any property 
        acquired under this section.
          [(2) Waiver.--The Secretary may grant a waiver to a 
        public agency or nonprofit organization that is unable 
        to meet the requirement of paragraph (1), if the agency 
        or organization agrees to otherwise consult with 
        homeless or formerly homeless individuals in 
        considering and making such policies and decisions.
  [(h) Budget Compliance.--The authority provided to the 
Secretary under this section shall be effective only to the 
extent approved in advance in appropriations Acts.]

   TITLE IV--PERMANENT HOUSING DEVELOPMENT AND FLEXIBLE BLOCK GRANT 
                      HOMELESS ASSISTANCE PROGRAM

                     Subtitle A--General Provisions

SEC. 401. PURPOSE; PERFORMANCE MEASURES.

  (a) Purpose.--The purpose of the program under this title is 
to provide assistance for permanent housing development for 
homeless persons and promote the development of a comprehensive 
housing system that transitions homeless persons to live as 
independently as possible, including assistance in the form of 
permanent housing development, supportive housing, emergency 
shelters, supportive services, and activities to prevent 
hopelessness.
  (b) Performance Measures.--Consistent with the purposes and 
requirements of the Government Performance and Results Act of 
1993, the programs under this title and the implementation of 
such programs by the Department of Housing and Urban 
Development shall comply with the following performance goals:
          (1) The Federal Government shall ensure an effective 
        grant allocation process and sound financial management 
        of the process. Such grant allocation process shall be 
        implemented to ensure that--
                  (A) local governments shall work with the 
                appropriate Local Board to create innovative 
                plans sufficient to address the needs of 
                homeless people in their community; and
                  (B) all eligible communities receive funds to 
                address the needs of homeless people in such 
                communities through local governments or 
                private nonprofit organizations.
          (2) The financial resources provided under this title 
        shall be used effectively to create more low-cost 
        permanent housing and to transition homeless people to 
        self-sufficiency and permanent housing.
          (3) The Federal Government shall use the Interagency 
        Council on the Homeless as a vehicle to coordinate 
        services, programs, and funds to promote the transition 
        of homeless people to self-sufficiency in permanent 
        housing.

SEC. 402. GRANT AUTHORITY.

  (a) In General.--The Secretary may make grants as provided 
under this title to eligible grantees for States, metropolitan 
cities and urban counties, consortia, and insular areas for 
carrying out eligible activities under subtitles B and C.
  (b) Grant Amounts.--Except as otherwise provided under this 
title, amounts for a fiscal year allocated under section 406 
shall be used as follows:
          (1) Insular areas.--Any amounts for the fiscal year 
        allocated under section 406(a) for an insular area 
        shall be used for a grant to the eligible grantee for 
        the insular area for such fiscal year.
          (2) Permanent housing development.--Any amounts 
        allocated under section 406(b) for use under subtitle B 
        shall be used for grants under section 406(b)(2) to 
        States, metropolitan cities, urban counties, and 
        consortia for such fiscal year.
          (3) Flexible block grant homeless assistance.--Any 
        amounts allocated under section 406(c) for a State, 
        metropolitan city or urban county, or consortium shall 
        be used for a grant under section 406(c) to the 
        eligible grantee for the State, metropolitan city or 
        urban county, or consortium respectively, for the 
        fiscal year.
  (c) Use for Eligible Activities.--Grant amounts provided 
under this title and any supplemental funds provided under 
section 407 may be used only as follows:
          (1) Insular area grants.--In the case of a grant 
        under subsection (b)(1) for an insular area, for 
        eligible activities under subtitle C benefiting the 
        insular area.
          (2) Permanent housing development grants.--In the 
        case of a grant under subsection (b)(2) to a State, 
        metropolitan city or urban county, or consortium, for 
        eligible activities under subtitle B within the State, 
        metropolitan city or urban county, or consortium, 
        respectively.
          (3) Flexible block grant homeless assistance.--In the 
        case of a grant under subsection (b)(3) for a State, 
        metropolitan city or urban county, or consortium, for 
        eligible activities under subtitle C benefiting the 
        State, city or county, or consortium and carried out 
        only within non entitlement areas of the State, within 
        the city or county, or consortium, as applicable.

SEC. 403. ELIGIBLE GRANTEES.

  For purposes of this title, the term ``eligible grantee'' has 
the following meaning:
          (1) Grants for insular areas.--In the case of a grant 
        from amounts allocated under section 406(a) for an 
        insular area, such term means--
                  (A) the insular area, or an agency, office, 
                or other entity of the area; or
                  (B) to the extent that an entity that is a 
                private nonprofit organization is authorized by 
                the government of the insular area to act as 
                the grantee for the area for purposes of this 
                title, such private nonprofit entity.
          (2) Grants for permanent housing development and 
        flexible assistance.--In the case of a grant from 
        amounts allocated under section 406(b) or section 
        406(c) for a State, or for a metropolitan city or urban 
        county, such term means--
                  (A) the State, or the metropolitan city or 
                urban county, respectively, or an agency, 
                office, or other entity of the State, or the 
                city or county, respectively;
                  (B) a consortium of units of general local 
                governments which shall be deemed to be a 
                metropolitan city, but only if the Secretary 
                determines that the consortium--
                          (i) is comprised of units of general 
                        local government which are 
                        geographically contiguous (which may 
                        include all units of general local 
                        government within a State);
                          (ii) has sufficient authority and 
                        administrative capability to carry out 
                        the purposes of this title on behalf of 
                        its member jurisdictions; and
                          (iii) will, according to a written 
                        certification by the State (or States, 
                        if the consortium includes 
                        jurisdictions in more than one State) 
                        in which its member jurisdictions are 
                        located, direct its activities to 
                        alleviation of hopelessness problems 
                        within the State (or States); and
                  (C) to the extent that a private nonprofit 
                organization is authorized by the government of 
                the State or the city or county under 
                subparagraph (B) to act as the grantee for the 
                State, or the city or county, respectively, for 
                purposes of this title, such private nonprofit 
                organization.

SEC. 404. USE OF PROJECT SPONSORS.

  (a) Transfer of Grant Amounts by Grantees.--Eligible 
activities assisted with grant amounts provided under this 
title may be carried out directly by the grantee or by other 
entities serving as project sponsors, which are provided such 
grant amounts by the grantee or a subgrantee of the grantee.
  (b) Competitive Selection Criteria.--To the extent that a 
grantee does not use grant amounts for eligible activities 
carried out directly by the grantee, the grantee shall select 
eligible activities for assistance and project sponsors to 
carry out such eligible activities pursuant to a competition 
based on criteria established by the Secretary, which shall 
include--
          (1) whether the project sponsor that will carry out 
        the activity is financially responsible;
          (2) the ability of the project sponsor to carry out 
        the eligible activity and the project sponsor's 
        experience in successfully transitioning homeless 
        persons into stable, long-term housing;
          (3) the need for the type of eligible activity in the 
        area to be served;
          (4) the extent to which the amount of assistance to 
        be provided with grant amounts will be supplemented 
        with resources from other public and private sources;
          (5) the cost-effectiveness of the proposed eligible 
        activity, considered in relation to the ultimate goal 
        of moving people out of hopelessness permanently, 
        including consideration of high-cost area services, and 
        other necessary amenities;
          (6) the extent to which the project sponsor carrying 
        out the eligible activity will coordinate with Federal, 
        State, local, and private entities serving homeless 
        persons in the development of a comprehensive housing 
        system and in the planning and operation of the 
        activity, to the extent practicable, and pursuant to 
        section 408(m)(3) will carry out the activity in 
        coordination and conjunction with federally funded 
        activities for the homeless;
          (7) the extent to which the project sponsor employs 
        homeless persons or involves homeless persons or 
        formerly homeless persons in the operation and design 
        of its programs; and
          (8) such other factors as the Secretary determines to 
        be appropriate to carry out this title in an effective 
        and efficient manner.

SEC. 405. COMPREHENSIVE HOUSING AFFORDABILITY STRATEGY COMPLIANCE.

  A grant under this title may be provided to an eligible 
grantee only if--
          (1) the applicable jurisdiction for which the grant 
        amounts are allocated under section 406 has submitted 
        to the Secretary a comprehensive housing affordability 
        strategy in accordance with section 105 of the 
        Cranston-Gonzalez National Affordable Housing Act and 
        any other requirement established by the Secretary and 
        which is in effect for the fiscal year for which such 
        grant amounts are to be provided; and
          (2) the public official of such applicable 
        jurisdiction who is responsible for submitting the 
        comprehensive housing affordability strategy certifies 
        to the Secretary that the eligible activities to be 
        assisted with such grant amounts are or will be 
        consistent with the comprehensive housing affordability 
        strategy for the jurisdiction and the plans in such 
        strategy for addressing housing needs for homeless 
        families.

SEC. 406. ALLOCATION AND AVAILABILITY OF AMOUNTS.

  (a) Allocation for Insular Areas.--Of the amount made 
available for grants under this title for a fiscal year, the 
Secretary shall reserve for grants for each of the insular 
areas amounts in accordance with an allocation formula 
established by the Secretary.
  (b) Allocation for Permanent Housing Development Grants Under 
Subtitle B.--
          (1) Annual portion of appropriated amount 
        available.--Of the amount made available for grants 
        under this title for a fiscal year that remains after 
        amounts are reserved under subsection (a), the 
        Secretary shall allocate for use under subtitle B, 30 
        percent of such funds (except that for fiscal years 
        1998 and 1999, the Secretary shall allocate 25 percent 
        of such funds for use under such subtitle).
          (2) Grants.--Using the amounts allocated for use 
        under subtitle B for a fiscal year, the Secretary shall 
        make grants to States, metropolitan cities and urban 
        counties, and consortia pursuant to a national 
        competition based on the criteria specified in section 
        404(b) and in accordance with such other factors as the 
        Secretary determines to be appropriate to carry out 
        this title in an effective and efficient manner.
          (3) Limitation.--In making grants using amounts 
        allocated for use under subtitle B for any fiscal year, 
        the Secretary shall ensure that not more than 35 
        percent of the total amount allocated for such use for 
        such fiscal year is used for activities under section 
        441 of the Stewart B. McKinney Homeless Assistance Act, 
        as in effect on October 31, 1997.
  (c) Allocation for Flexible Block Grant Homeless Assistance 
Under Subtitle C.--
          (1) Annual portion of appropriated amount available 
        for subtitle c activities.--Of the amount made 
        available for grants under this title for a fiscal year 
        that remains after amounts are reserved under 
        subsection (a), the Secretary shall allocate for use 
        under subtitle C 70 percent of such funds (except that 
        for fiscal years 1998 and 1999, the Secretary shall 
        allocate 75 percent of such funds for use under such 
        subtitle).
          (2) Allocation of amount available between 
        metropolitan cities and urban counties and states.--Of 
        the amount allocated pursuant to paragraph (1) for use 
        under subtitle C for a fiscal year, 70 percent shall be 
        allocated for metropolitan cities and urban counties 
        and 30 percent shall be allocated for States.
          (3) Interim determination of allocated amount.--
        Except as provided in subparagraph (A) the Secretary 
        shall allocate amounts available for use under subtitle 
        C for a fiscal year so that--
                  (A) for each metropolitan city and urban 
                county, the percentage of the total amount 
                allocated under this subsection for cities and 
                counties that is allocated for such city or 
                county is equal to the percentage of the total 
                amount available for the preceding fiscal year 
                under section 106(b) of the Housing and 
                Community Development Act of 1974 for grants to 
                metropolitan cities and urban counties that was 
                allocated for such city or county; and
                  (B) for each State, the percentage of the 
                total amount allocated under this subsection 
                for States that is allocated for such State is 
                equal to the percentage of the total amount 
                available for the preceding fiscal year under 
                section 106(d) of the Housing and Community 
                Development Act of 1974 for grants to States 
                that was allocated for such State.
          (4) Minimum Appropriation Requirement.--If, by 
        December 1 of any fiscal year, the amount appropriated 
        for grants under this title for such fiscal year is 
        less than $750,000,000--
                  (A) the Secretary shall not allocate amounts 
                for such fiscal year under subsection (b) and 
                this subsection;
                  (B) subsection (d) shall not apply to amounts 
                for such fiscal year; and
                  (C) notwithstanding any other provision of 
                this title, the Secretary shall make grants 
                under this title from such amounts to States, 
                units of general local government, and private 
                nonprofit organizations, pursuant to a national 
                competition based on the criteria specified in 
                section 404(b).
          (5) Study; submission of information to congress 
        related to alternative methods of allocation.--Not 
        later than 1 year after the date of the enactment of 
        the Homeless Housing Program Consolidation and 
        Flexibility Act, the Secretary shall--
                  (A) submit to Congress--
                          (i) the best available methodology 
                        for determining a formula relative to 
                        the geographic allocation of funds 
                        under this subtitle among entitlement 
                        communities and nonentitlement areas 
                        based on the incidence of homelessness 
                        and factors that lead to homelessness;
                          (ii) proposed alternatives to the 
                        formula submitted pursuant to clause 
                        (i) for allocating funds under this 
                        section, including an evaluation and 
                        recommendation on a 75/25 percent 
                        allocation of flexible block grant 
                        homeless assistance between 
                        metropolitan cities and urban counties 
                        and States under paragraph (2);
                          (iii) an analysis of the deficiencies 
                        in the current allocation formula 
                        described in section 106(b) of the 
                        Housing and Community Development Act 
                        of 1974, and an analysis of the 
                        adequacy of current indices used as 
                        proxies for measuring homelessness; and
                          (iv) an analysis of the bases 
                        underlying each of the proposed 
                        allocation methods;
                  (B) perform the duties required by this 
                paragraph in ongoing consultation with--
                          (i) the Subcommittee on Housing 
                        Opportunity and Community Development 
                        of the Committee on Banking, Housing, 
                        and Urban Affairs of the Senate;
                          (ii) the Subcommittee on Housing and 
                        Community Opportunity of the Committee 
                        on Banking and Financial Services of 
                        the House of Representatives;
                          (iii) organizations representing 
                        States, metropolitan cities and urban 
                        counties;
                          (iv) organizations representing rural 
                        communities;
                          (v) organizations representing 
                        veterans;
                          (vi) organizations representing 
                        persons with disabilities;
                          (vii) members of the academic 
                        community; and
                          (viii) national homelessness advocacy 
                        groups; and
                  (C) estimate the amount of funds that will be 
                received annually by each entitlement community 
                and nonentitlement area under each such 
                alternative allocation system and compare such 
                amounts to the amount of funds received by each 
                entitlement community and nonentitlement area 
                in prior years under this section.
          (6) Minimum grant amount.--Notwithstanding paragraph 
        (3), a State or metropolitan city or urban county shall 
        receive no less funding under this subsection in the 
        first full fiscal year after the date of the enactment 
        of the Homeless Housing Programs Consolidation and 
        Flexibility Act than 90 percent of the average of the 
        amounts awarded annually to that jurisdiction for 
        homeless assistance programs administered by the 
        Secretary (not including allocations for shelter plus 
        care and single room occupancy programs as defined in, 
        and in effect pursuant to, this Act prior to the date 
        of the enactment of the Homeless Housing Programs 
        Consolidation and Flexibility Act) under this title 
        during fiscal years 1994 through 1997, no less than 85 
        percent in the second full fiscal year after the date 
        of the enactment of the Homeless Housing Programs 
        Consolidation and Flexibility Act, no less than 80 
        percent in the third and fourth full fiscal years after 
        the date of the enactment of the Homeless Housing 
        Programs Consolidation and Flexibility Act, and no less 
        than 75 percent in the fifth full fiscal year after the 
        date of the enactment of the Homeless Housing Programs 
        Consolidation and Flexibility Act, but only if the 
        amount appropriated pursuant to section 435 in each 
        such fiscal year exceeds $800,000,000. If that amount 
        does not exceed $800,000,000 in any fiscal year 
        referred to in the first sentence of this paragraph, 
        the jurisdiction may receive its proportionate share of 
        the amount appropriated which may be less than the 
        amount stated such sentence for such fiscal year.
          (7) Minimum state allocation.--Notwithstanding 
        paragraphs (3) and (6), if in any fiscal year the 
        allocation for a State is less than $2,000,000, the 
        allocation for that State shall be increased to 
        $2,000,000 and the increase shall be provided by 
        deducting pro rata amounts from the allocations of 
        States with allocations of more than $2,000,000.
          (8) Reduction.--Notwithstanding paragraphs (1) 
        through (7), in any fiscal year, the Secretary may 
        provide a grant under this subsection for a State or 
        metropolitan city or urban county, in an amount less 
        than the amount allocated under those paragraphs, if 
        the Secretary determines that the jurisdiction has 
        failed to comply with requirements of this title, or 
        that such action is otherwise appropriate.
  (d) Recapture of Allocated Amounts.--The Secretary shall 
recapture the following amounts:
          (1) Unused amounts.--Not less than once during each 
        fiscal year, the Secretary shall recapture any amounts 
        allocated under this section that--
                  (A) are allocated for a State, metropolitan 
                city or urban county, or insular area, but not 
                provided to an eligible grantee for the 
                jurisdiction because of failure to apply for a 
                grant under this title or failure to comply 
                with the requirements of this title;
                  (B) were provided to a grantee and (i) 
                recaptured under this title, or (ii) not 
                utilized by the grantee in accordance with the 
                purposes and objectives of the approved 
                application of the grantee within a reasonable 
                time period, which the Secretary shall 
                establish; or
                  (C) are returned to the Secretary by the time 
                of such reallocation.
          (2) Amounts allocated to grantees that fail to comply 
        with comprehensive housing affordability strategy 
        requirements.--Notwithstanding paragraph (1), if, for 
        any fiscal year, a metropolitan city or urban county 
        fails to comply with the requirement under section 
        405(1) during the 90-day period beginning on the date 
        that amounts for grants under this title for such 
        fiscal year first become available for allocation, the 
        amounts that would have been allocated under subsection 
        (c) of this section for such city or county shall be 
        reallocated for the State in which the unit is located, 
        but only if the State has complied with the requirement 
        under section 405(1). Any amounts that cannot be 
        allocated for a State under the preceding sentence 
        shall be reallocated for other metropolitan cities and 
        urban counties and States that comply with such 
        requirement and demonstrate extraordinary need or large 
        numbers of homeless persons, as determined by the 
        Secretary.
  (e) Reallocation of Amounts.--Any amounts allocated under 
subsection (b) that are recaptured pursuant to subsection 
(d)(1) shall be reallocated only for use under subtitle B. Any 
amounts allocated under subsection (c) that are recaptured 
pursuant to subsection (d)(1) shall be reallocated only for use 
under subtitle C.

SEC. 407. MATCHING FUNDS REQUIREMENT.

  (a) In General.--Each State, metropolitan city or urban 
county, and insular area for which a grant under this title is 
made shall supplement the amount of the grant provided under 
this title with an amount that is not less than--
          (1) 50 percent of the amount of such grant, if the 
        State, metropolitan city or urban county, and insular 
        area has indicated in its application for such grant 
        that it will not include as a portion of its 
        supplementation the cost or value of donated services; 
        or
          (2) 100 percent of the grant amount, if the State, 
        metropolitan city or urban county, and insular area 
        indicated in its application for such grant that it 
        will include as a portion of its supplementation the 
        cost or value of donated services.
  (b) Matching Requirement for Use of More Than 35 Percent of 
Funds for Supportive Services.--In addition to the supplemental 
funds required pursuant to subsection (a), for the second full 
fiscal year after the date of the enactment of the Homeless 
Housing Programs Consolidation and Flexibility Act and each 
fiscal year thereafter, a State, consortium, or metropolitan 
city or urban county shall supplement the grant funds for the 
State, consortium, city or county in an amount equal to the 
amount used by that State, metropolitan city or urban county, 
or consortium for supportive services in a fiscal year that 
exceeds 35 percent of the total grant amount for the State, 
metropolitan city or urban county, or consortium for that 
fiscal year.
  (c) Treatment of Independent State or Local Government 
Funds.--Any State or local government funds used independently 
from the program under this title, or designated for such use, 
to assist the homeless by carrying out activities that would be 
eligible for assistance under this subtitle may be counted 
toward the amount required pursuant to subsection (a).
  (d) Authority for Grantees To Require Supplementation.--
          (1) In general.--Each grantee under this title may 
        require any subgrantee or project sponsor to whom it 
        provides such grant amounts to provide supplemental 
        amounts required under subsections (a) and (b) with an 
        amount of funds from sources other than this title.
          (2) Amount allowed to be required by grantee.--
                  (A) Grant amount.--Except as provided in 
                paragraph (3), a grantee may not require any 
                subgrantee or project sponsor to whom it 
                provides such grant amounts under this title to 
                provide--
                          (i) supplemental amounts required 
                        under subsection (a)(1) in an amount 
                        exceeding 25 percent of the grant 
                        amount provided to the grantee or 
                        project sponsor; or
                          (ii) supplemental amounts required 
                        under subsection (a)(2) in an amount 
                        exceeding 50 percent of the grant 
                        amount provided to the grantee or 
                        project sponsor.
                  (B) Supportive services.--A grantee may 
                require any subgrantee or project sponsor to 
                whom it provides grant amounts under this title 
                to provide supplemental amounts required under 
                subsection (b) in an amount equal to the amount 
                used by subgrantee or project sponsor for 
                supportive services in a fiscal year that 
                exceeds 35 percent of the total amount 
                allocated pursuant to this subsection for that 
                fiscal year.
          (3) Supplemental funds may be considered as matching 
        funds.--Supplemental amounts provided by a subgrantee 
        or project sponsor pursuant to this subsection may be 
        considered supplemental amounts for purposes of 
        compliance by any grantee with the requirement under 
        subsections (a) and (b).
  (e) Use of Funds.--Any supplemental funds made available in 
compliance with this section shall be available only to carry 
out eligible activities (1) under subtitle B, if the grant 
amounts are available only for such activities, or (2) under 
subtitle C, if the grant amounts are available only for such 
activities.
  (f) Supplemental Funds.--In determining the amount of 
supplemental funds provided in accordance with this section, 
the following amounts may be included:
          (1) Cash.
          (2) The value of any donated or purchased material or 
        building.
          (3) The value of any lease on a building.
          (4) The proceeds from bond financing validly issued 
        by a State or unit of general local government, agency, 
        or instrumentality thereof, and repayable with revenues 
        derived from the activity assisted under this title.
          (5) The amount of any salary paid to staff to carry 
        out a program for eligible activities under subtitle B 
        or C.
          (6) The cost or value of any donated goods.
          (7) The value of taxes, fees, or other charges that 
        are normally and customarily imposed, but which are 
        waived or foregone to assist in providing housing or 
        services for the homeless.
          (8) The cost of on-site and off-site infrastructure 
        that is directly related to and necessary for providing 
        housing or services for the homeless.
          (9) The cost or value of any donated services, but 
        only if the State, metropolitan city or urban county, 
        and insular area has stated in its application for a 
        grant under this title that it shall supplement the 
        amount of such grant, in accordance with section 
        407(a)(2).
  (g) Reduction in matching requirements.--
          (1) In general.--The Secretary shall reduce the 
        matching requirement under subsection (a) during a 
        fiscal year by--
                  (A) 50 percent for a jurisdiction that 
                certifies that it is in fiscal distress; and
                  (B) 100 percent for a jurisdiction that 
                certifies that it is in severe fiscal distress.
        For purposes of subparagraphs (A) and (B), the 
        jurisdiction shall make the certification on behalf of 
        a recipient that is not a governmental jurisdiction.
          (2) Definitions.--For purposes of this subsection--
                  (A) the term ``fiscal distress'' means, with 
                respect to a unit of general local government, 
                insular area, or State recipient that is a 
                governmental jurisdiction, that the 
                jurisdiction satisfies one of the distress 
                criteria set forth in paragraph (3); and
                  (B) the term ``severe fiscal distress'' 
                means, with respect to a unit of general local 
                government, insular area, or State recipient 
                that is a governmental jurisdiction, that the 
                jurisdiction satisfies both of the distress 
                criteria set forth in paragraph (3).
          (3) Distress criteria.--For a unit of general local 
        government, an insular area, or a State recipient that 
        is a governmental jurisdiction certifying that it is 
        distressed, the following criteria shall apply:
                  (A) Poverty rate.--The average poverty rate 
                in the jurisdiction for the calendar year 
                immediately preceding the year in which its 
                fiscal year begins was equal to or greater than 
                125 percent of the average national poverty 
                rate during such calendar year (as determined 
                according to information of the Bureau of the 
                Census).
                  (B) Per capita income.--The average per 
                capita income in the jurisdiction for the 
                calendar year immediately preceding the year in 
                which its fiscal year begins was less than 75 
                percent of the average national per capita 
                income during such calendar year (as determined 
                according to information of the Bureau of the 
                Census).
          (4) States.--In the case of a State, the Secretary 
        shall reduce the matching requirement under subsection 
        (a) as provided by the preceding paragraphs, except 
        that the certification shall be made with respect to 
        the area, as determined by the Secretary, in which the 
        activities are to be carried out.
          (5) Waiver in disaster areas.--If a recipient is 
        located in an area in which a declaration of a disaster 
        pursuant to the Robert T. Stafford Disaster Relief and 
        Emergency Assistance Act is in effect for any part of a 
        fiscal year, the Secretary may reduce the matching 
        requirement for that fiscal year under subsection (a) 
        during that fiscal year by up to 100 percent.

SEC. 408. PROGRAM REQUIREMENTS.

  (a) Applications.--
          (1) Form and procedure.--The Secretary shall make a 
        grant under this title only pursuant to an application 
        for a grant submitted by an eligible grantee in the 
        form and in accordance with the procedures established 
        by the Secretary. The Secretary may not give preference 
        or priority to any application on the basis that the 
        application was submitted by any particular type of 
        eligible grantee.
          (2) Contents.--The Secretary shall require that 
        applications contain at a minimum the following 
        information:
                  (A) Grants for permanent housing development 
                activities.--In the case of an application for 
                a grant available for use for activities under 
                subtitle B or an application for a grant 
                available for use under subtitle C for 
                permanent housing development assistance--
                          (i) a description of the permanent 
                        housing development activities to be 
                        assisted;
                          (ii) a description of the entities 
                        that will carry out such activities and 
                        the programs for carrying out such 
                        activities; and
                          (iii) assurances satisfactory to the 
                        Secretary that the facility will comply 
                        with the requirement under subsection 
                        (j).
                  (B) Flexible block grant homeless 
                assistance.--In the case of an application for 
                a grant available for use for activities under 
                subtitle C--
                          (i) a description of the eligible 
                        activities to be assisted, to the 
                        extent available at the time;
                          (ii) in the case of a grant for a 
                        facility assisted under paragraph (1) 
                        or (2) of section 421(a), assurances 
                        satisfactory to the Secretary that the 
                        facility will comply with the 
                        requirement under subsection (j);
                          (iii) in the case of a grant for a 
                        supportive housing facility assisted 
                        under this title that does not receive 
                        assistance under paragraph (1) or (2) 
                        of section 421(a), annual assurances 
                        during the period specified in the 
                        application that the facility will be 
                        operated for the purpose specified in 
                        the application for such period; and
                          (iv) in the case of a grant for a 
                        supportive housing facility, reasonable 
                        assurances that the project sponsor 
                        will own or have control of a site not 
                        later than the expiration of the 12-
                        month period beginning upon 
                        notification of an award of grant 
                        assistance, unless the application 
                        proposes providing supportive housing 
                        assisted under section 421(a)(3) or 
                        housing that will eventually be owned 
                        or controlled by the families 
andindividuals served; except that a project sponsor may obtain 
ownership or control of a suitable site different from the site 
specified in the application.
                  (C) All grants.--In the case of an 
                application for any grant under this title--
                          (i) a description of the size and 
                        characteristics of the population, 
                        including specific references to 
                        populations with special needs, that 
                        will be served by the eligible 
                        activities assisted with grant amounts;
                          (ii) a description of the public and 
                        private resources that are expected to 
                        be made available in connection with 
                        grant amounts provided;
                          (iii) a description of the process to 
                        be used in compliance with section 
                        404(b) to select eligible activities to 
                        be assisted and project sponsors;
                          (iv) a certification that the 
                        applicant will comply with the 
                        requirements of the Fair Housing Act, 
                        title VI of the Civil Rights Act of 
                        1964, section 504 of the Rehabilitation 
                        Act of 1973, and the Age Discrimination 
                        Act of 1975, and will affirmatively 
                        further fair housing; and
                          (v) a statement of whether the 
                        applicant will or will not include, as 
                        a portion of its supplementation amount 
                        required under section 407(a), the cost 
                        or value of donated services.
  (b) Required Agreements.--The Secretary may not provide a 
grant under this title for any applicant unless the applicant 
agrees--
          (1) to ensure that the eligible activities carried 
        out with grant amounts will be carried out in 
        accordance with the provisions of this title;
          (2) to conduct an ongoing assessment of the 
        supportive services required by homeless persons 
        assisted by the eligible activities and the 
        availability of such services to such persons;
          (3) in the case of grant amounts to be used under 
        subtitle C for a supportive housing facility or an 
        emergency shelter, to ensure the provision of such 
        residential supervision as the Secretary determines is 
        necessary to facilitate the adequate provision of 
        supportive services to the residents and users of the 
        facility or shelter;
          (4) to monitor and report under section 431 to the 
        Secretary on the progress of the eligible activities 
        carried out with grant amounts;
          (5) to develop and implement procedures to ensure (A) 
        the confidentiality of records pertaining to any 
        individual provided family violence prevention or 
        treatment services through any activities assisted with 
        grant amounts, and (B) that the address or location of 
        any family violence shelter facility assisted with 
        grant amounts will not be made public, except with 
        written authorization of the person or persons 
        responsible for the operation of such facility;
          (6) to the maximum extent practicable, to involve 
        homeless persons and families, through employment, 
        volunteer services, or otherwise, in carrying out 
        eligible activities assisted with grant amounts; and
          (7) to comply with such other terms and conditions as 
        the Secretary may establish to carry out this title in 
        an effective and efficient manner.
  (c) Occupancy Charge.--Any homeless person or family residing 
in a dwelling unit assisted under this title may be required to 
pay an occupancy charge in an amount determined by the grantee 
providing the assistance, which may not exceed an amount equal 
to 30 percent of the adjusted income (as such term is defined 
in section 3(b) of the United States Housing Act of 1937 or any 
other subsequent provision of Federal law defining such term 
for purposes of eligibility for, or rental charges in, public 
housing) of the person or family. Occupancy charges paid may be 
reserved, in whole or in part, to assist residents in moving to 
permanent housing.
  (d) Flood Protection Standards.--Flood protection standards 
applicable to housing acquired, rehabilitated, constructed, or 
assisted with grant amounts provided under this title shall be 
no more restrictive than the standards applicable under 
Executive Order No. 11988 (42 U.S.C. 4321 note; relating to 
floodplain management) to the other programs in effect under 
this title immediately before the enactment of the Homeless 
Housing Programs Consolidation and Flexibility Act.
  (e) Participation of Citizens and Others.
          (1) In general.--Each grantee shall--
                  (A) each fiscal year, make available to its 
                citizens, public agencies, and other interested 
                parties information concerning the amount of 
                assistance the jurisdiction expects to receive 
                and the range of activities that may be 
                undertaken with the assistance;
                  (B) publish the proposed application in a 
                manner that, in the determination of the 
                Secretary, affords affected citizens, public 
                agencies, and other interested parties a 
                reasonable opportunity to examine its content 
                and to submit comments on it;
                  (C) each fiscal year, hold one or more public 
                hearings to obtain the views of citizens, 
                public agencies, and other interested parties 
                on the housing needs of the jurisdiction; and
                  (D) provide citizens, public agencies, and 
                other interested parties with reasonable access 
                to records regarding any uses of any assistance 
                the grantee may have received under this 
                subtitle during the preceding 5 years.
          (2) Electronic access.--A grantee may comply with the 
        requirement under subparagraphs (A), (B), and (D) of 
        paragraph (1) by making the information available 
        through interactive computer or telephone services or 
        other electronic information networks and systems 
        appropriate for making such information widely 
        available to the public.
          (3) Notice and comment.--Before submitting any 
        substantial amendment to an application under this Act, 
        a grantee shall provide citizens with reasonable notice 
        of, and opportunity to comment on, the amendment.
          (4) Consideration of comments.--A grantee shall 
        consider any comments or views of citizens in preparing 
        a final application or amendment to an application for 
        submission. A summary of such comments or views shall 
        be attached when an application or amendment to an 
        application is submitted. The submitted application or 
        amendment shall be made available to the public.
          (5) Authority of secretary.--The Secretary shall 
        establish procedures appropriate and practicable for 
        providing a fair hearing and timely resolution of 
        citizen complaints related to applications under this 
        subtitle.
          (6) Homeless individuals.--The Secretary shall, by 
        regulation, require each grantee to ensure that each 
        project sponsor assisted by the grantee provides for 
        the participation of not less than 1 homeless person or 
        former homeless person on the board of directors or 
        other equivalent policymaking entity of the project 
        sponsor, to the extent that such sponsor considers and 
        makes policies and decisions regarding any activity or 
        facility, supportive services, or assistance provided 
        with grant amounts under this title. The Secretary 
        shall provide that a grantee may grant waivers to 
        project sponsors unable to meet the requirement under 
        the preceding sentence if the sponsor agrees to 
        otherwise consult with homeless or formerly homeless 
        persons in considering and making such policies and 
        decisions.
  (f) Limitation on Use of Funds.--No grant amounts received 
under this title (or any funds provided under section 407 or 
otherwise to supplement such grants) may be used to replace 
other State or local funds previously used, or designated for 
use, to assist homeless persons.
  (g) Limitation on Administrative Expenses.--Notwithstanding 
any other provision of this title, of any grant amounts under 
this title used to carry out eligible activities, the grantee 
or the project sponsor may use for administrative purposes--
          (1) an amount not exceeding 5 percent of such grant 
        amount; or
          (2) if the grantee implements use of a standardized 
        homeless database management system to record and 
        assess data on the usage of homeless housing, services, 
        and client needs, and on the number and other 
        information related to populations with special needs, 
        an amount not exceeding 7.5 percent of such grant 
        amount.
  (h) Housing Quality.--
          (1) Requirement.--Assistance may not be provided with 
        grant amounts made available for use under this title 
        for any permanent housing development, dwelling unit, 
        supportive housing facility, or emergency shelter that 
        fails to comply with the housing quality standards 
        applicable under paragraph (2) in the jurisdiction in 
        which the housing is located, unless the deficiency is 
        promptly corrected and the project sponsor verifies the 
        correction.
          (2) Applicable standards.--The housing quality 
        standards applicable under this subsection to permanent 
        housing, a dwelling unit, supportive housing facility, 
        or emergency shelter shall be--
                  (A) in the case of permanent housing, a unit, 
                facility, or shelter located in a jurisdiction 
                which has in effect laws, regulations, 
                standards, or codes regarding habitability of 
                such housing, units, facilities, or shelters 
                that provide protection to residents of the 
                dwellings that is equal to or greater than the 
                protection provided under the housing quality 
                standards established under paragraph (3), such 
                applicable laws, regulations, standards, or 
                codes; or
                  (B) in the case of permanent housing, a unit, 
                facility, or shelter located in a jurisdiction 
                which does not have in effect laws, 
                regulations, standards, or codes described in 
                subparagraph (A), the housing quality standards 
                established under paragraph (3).
          (3) Federal housing quality standards.--The Secretary 
        shall establish housing quality standards under this 
        paragraph that ensure that permanent housing, dwelling 
        units, supportive housing facilities, and emergency 
        shelters assisted under this title are safe, clean, and 
        healthy. Such standards shall include requirements 
        relating to habitability, including maintenance, health 
        and sanitation factors, condition, and construction of 
        dwellings. The Secretary shall differentiate between 
        major and minor violations of such standards and may 
        establish separate standards for permanent housing, 
        dwelling units, supportive housing facilities, and 
        emergency shelters.
  (i) Termination of Assistance.--If a person or family (not 
including residents of an emergency shelter) who receives 
assistance under this title violates program requirements, the 
project sponsor may terminate assistance in accordance with a 
formal process established by such sponsor that recognizes the 
rights of individuals receiving such assistance to due process 
of law, which may include a hearing.
  (j) Use Restrictions.--
          (1) Acquisition, rehabilitation, and new 
        construction.--
                  (A) In general.--Except as provided in 
                subparagraph (B), each housing facility 
                assisted under subtitle B or subtitle C shall 
                be operated as housing for the purpose 
                specified in the application for assistance 
                with amounts under this title for not less than 
                20 years after such facility is initially 
                placed in service pursuant to such assistance.
                  (B) Exceptions.--
                          (i) Inability to operate facility.--
                        If, within such 20-year period, the 
                        need for maintaining the facility as 
                        housing for the purpose specified in 
                        the application for assistance ceases 
                        to exist (as determined by the 
                        Secretary pursuant to a recommendation 
                        by the chief executive officer of the 
                        appropriate unit of general local 
                        government or project sponsor, taking 
                        into consideration the comprehensive 
                        housing affordability strategy of the 
                        jurisdiction), or the project sponsor 
                        is unable to operate the facility as 
                        supportive housing, the facility may be 
                        used as affordable housing (in 
                        accordance with section 215 of the 
                        Cranston-Gonzalez National Affordable 
                        Housing Act).
                          (ii)  Applicability of other program 
                        restriction.--If the housing facility 
                        receives assistance under any other 
                        Federal program (including assistance 
                        under section 42 of the Internal 
                        Revenue Code of 1986) for low-income 
                        families, homeless person, or any other 
                        use consistent with assistance under 
                        this title, and the use restriction 
                        under such program is less than 20 
                        years, the restriction under such 
                        program shall apply.
          (2) Other assistance.--Each housing facility assisted 
        under subtitle C shall be operated for the purposes 
        specified in the application for assistance with 
        amounts under this title for the duration of the period 
        covered by the grant.
          (3) Conversion.--Notwithstanding paragraphs (1) and 
        (2), if the Secretary determines that a housing 
        facility is no longer needed for use as housing for the 
        purposes specified in the application for assistance 
        and approves the use of the facility for the direct 
        benefit of low-income persons pursuant to a request for 
        such use by the project sponsor, the Secretary may 
        authorize the sponsor to convert the facility to such 
        use.
  (k) Repayment of Assistance and Prevention of Undue 
Benefits.--
          (1) Repayment.--If a facility assisted under subtitle 
        B or subtitle C violates the requirement under 
        subsection (j)(1)(A) or (j)(1)(B)(ii) of this section 
        during the 10-year period beginning upon placement of 
        the facility in service pursuant to such assistance, 
        the Secretary shall require the grantee to repay to the 
        Secretary 100 percent of any grant amounts received for 
        such facility under such paragraph. If such a facility 
        violates such requirement after such 10-year period, 
        the Secretary shall require the grantee to repay the 
        percentage of any grant amounts received for such 
        facility that is equal to 100 percent minus 10 
        percentage points for each year in excess of 10 that 
        the facility is operated as supportive housing.
          (2) Prevention of undue benefits.--Except as provided 
        in paragraph (3), upon any sale or other disposition of 
        a facility assisted under subtitle B or C occurring 
        before the expiration of the 20-year period beginning 
        on the date that the facility is placed in service, the 
        project sponsor shall comply with such terms and 
        conditions as the Secretary may prescribe to prevent 
        the sponsor from unduly benefiting from such sale or 
        disposition.
          (3) Exception.--Paragraphs (1) and (2) shall not 
        apply to any sale or disposition of a facility that 
        results in the use of the facility for the direct 
        benefit of very low-income families if all of the 
        proceeds are used to provide housing meeting the 
        requirements of subtitle B or C.
          (4) Failure to obtain site.--If a grantee of 
        assistance made available for use under this title 
        obligates assistance for a housing facility other than 
        a facility under section 421(a)(3) or housing that will 
        eventually be owned or controlled by the families and 
        individuals served, and the project sponsor fails to 
        obtain ownership or control of a suitable site for a 
        proposed supportive housing facility during the 12-
        month period beginning upon the notification of an 
        award of grant assistance, the grantee shall recapture 
        the assistance and make such assistance available under 
        this subtitle.
  (l) Local Boards.--
          (1) Establishment and function.--The head of the 
        executive branch of government of each grantee shall 
        establish and appoint members to a local board, which 
        shall assist the jurisdiction in--
                  (A) determining whether the grant should be 
                administered by the jurisdiction, a public 
                agency, a private nonprofit organization, the 
                State, or the Secretary;
                  (B) developing the application under section 
                408;
                  (C) overseeing the activities carried out 
                with assistance under this title; and
                  (D) preparing the performance report under 
                section 431.
          (2) Composition of local boards.--
                  (A) Nomination.--Members of a local board 
                appointed to meet the requirements of 
                subparagraph (D) shall be nominated by persons, 
                other than governmental officials or entities, 
                that represent the groups listed in 
                subparagraph (D).
                  (B) Priority.--Persons who will improve 
                access to a broad range of services for 
                homeless persons and who are sensitive to the 
                varying needs of homeless persons, including 
                veterans, the mentally ill, families with 
                children, young persons, battered spouses, 
                victims of substance abuse, and persons with 
                AIDS, shall be given preference when selecting 
                local board members.
                  (C) Community support considered.--In 
                appointing members to the local board, the 
                chief executive of each grantee shall consider 
                the extent of support for the nominee in the 
                community which the board shall serve.
                  (D) Majority.--Not less than 51 percent of 
                the members of a local board shall be composed 
                of--
                          (i) homeless or formerly homeless 
                        persons;
                          (ii) persons who act as advocates for 
                        homeless persons; and
                          (iii) persons who provide assistance 
                        to homeless persons, including 
                        representatives of local veterans 
                        organizations and veteran service 
                        providers who assist homeless veterans.
                  (E) Other local board members.--After the 
                requirements of subparagraph (D) are met, other 
                members of a local board shall be chosen from--
                          (i) members of the business community 
                        of the jurisdiction receiving the 
                        grant;
                          (ii) members of neighborhood 
                        advocates in the jurisdiction receiving 
                        the grant; and
                          (iii) government officials of the 
                        jurisdiction receiving the grant.
          (3) Waiver of requirements for local board.--The 
        Secretary may waive the requirements of this subsection 
        if the jurisdiction has an existing board that 
        substantially meets the requirements of this 
        subsection.
  (m) Coordination of Homeless Programs.--
          (1) Purpose.--The purpose of the consultation and 
        coordination required under this subsection is to 
        provide various services, activities, and assistance 
        for homeless persons and families in an efficient, 
        effective, and targeted manner designed to meet the 
        comprehensive needs of the homeless.
          (2) In general.--The Chairperson of the Interagency 
        Council on the Homeless shall consult and coordinate 
        with the Secretary of Housing and Urban Development, 
        the Secretary of Health and Human Services, the 
        Secretary of Labor, the Secretary of Education, the 
        Secretary of Veterans Affairs, and the Secretary of 
        Agriculture and shall ensure that assistance for 
        federally funded activities for the homeless is made 
        available, to the greatest extent practicable, in 
        conjunction and coordination with assistance for other 
        federally funded activities for the homeless and with 
        assistance under this title.
          (3) Requirements for housing assistance.--The 
        Secretary shall establish such requirements as the 
        Secretary considers necessary to ensure that grant 
        amounts provided under this title are used by grantees 
        and project sponsors, to the greatest extent 
        practicable, in coordination and in conjunction with 
        federally funded activities for the homeless.
          (4) Definition.--For purposes of this subsection, the 
        term ``federally funded activities for the homeless'' 
        means activities to assist homeless persons, including 
        homeless veterans, or homeless families that are funded 
        (in whole or in part) with amounts provided by the 
        Federal Government (other than amounts provided under 
        this title) and includes--
                  (A) the programs for health care under 
                sections 340 and part C of title V of the 
                Public Health Service Act;
                  (B) the programs for education, training and 
                community services under title VII of the 
                Stewart B. McKinney Homeless Assistance Act;
                  (C) food assistance for homeless persons and 
                families through the food programs under the 
                Food Stamp Act of 1977 and the Emergency Food 
                Assistance Act of 1983;
                  (D) the job training, housing, and medical 
                programs for homeless veterans of the 
                Department of Veterans Affairs;
                  (E) the job corps centers for homeless 
                families program under section 433A of the Job 
                Training Partnership Act;
                  (F) the program for preventive services for 
                children of homeless families or families at 
                risk of homelessness under title III of the 
                Child Abuse Prevention and Treatment Act;
                  (G) the programs under the Runaway and 
                Homeless Youth Act; and
                  (H) assistance for homeless persons, 
                including homeless veterans, and families under 
                State programs funded under supplemental 
                security income programs under part A of title 
                IV or under title XVI of the Social Security 
                Act.
          (5) Companion services block grants in cases of 
        failure to comply.--
                  (A) In general.--If, for any fiscal year, the 
                Chairperson of the Interagency Council on the 
                Homeless determines that adequate coordination 
                has not taken place to ensure that assistance 
                for federally funded activities for the 
                homeless is made available in conjunction and 
                coordination with assistance under this title 
                (as required under paragraph (2)), the 
                Chairperson of the Interagency Council on the 
                Homeless and the Secretary, in consultation 
                with the Interagency Council on the Homeless, 
                shall carry out a program under subparagraph 
                (B) to make companion services block grants 
                available for such fiscal year.
                  (B) Companion service block grants.--The 
                block grant program under this subparagraph 
                shall provide block grants, using amounts 
                available pursuant to subparagraph (C), to 
                eligible grantees under this title to provide 
                services of the type available under the 
                programs referred to in paragraph (4) in 
                connection with housing assistance under this 
                title.
                  (C) Funding.--
                          (i) In general.--Notwithstanding any 
                        other provision of law, in any fiscal 
                        year in which block grants are to be 
                        provided in accordance with 
                        subparagraph (A), there shall be 
                        available for such block grants, of the 
                        amount made available for such fiscal 
                        year for each activity referred to in 
                        paragraph (4), 10 percent of such 
                        amount, as determined by the Secretary 
                        and the Interagency Council on the 
                        Homeless.
                          (ii) Limitation.--Notwithstanding 
                        clause (i), the aggregate amount 
                        available for companion services block 
                        grants under this paragraph for a 
                        fiscal year shall not exceed the total 
                        amount made available pursuant to 
                        section 435 for housing assistance 
                        under this title. If, for any fiscal 
                        year, the amount determined under 
                        clause (i) exceeds such amount, the 
                        Secretary shall reduce the percentage 
                        under clause (i) for such year so that 
                        the aggregate amount made available for 
                        companion services block grants under 
                        this paragraph from the amounts for 
                        each activity referred to in paragraph 
                        (4) is equal to the total amount made 
                        available pursuant to section 435 for 
                        housing assistance under this title.
                  (D) Transfer authority.--Except to the extent 
                that the authority of the Secretary and the 
                Chairperson of the Interagency Council on the 
                Homeless is limited by appropriations, and with 
                the concurrence of the head of the affected 
                agency and upon advance approval of the 
                Committees on Appropriations and the 
                authorizing committees of the House of 
                Representatives, and the Senate, the Secretary 
                and the Chairperson of the Interagency Council 
                on the Homeless shall transfer funds made 
                available under subparagraph (C) to the 
                companion services block grant for federally 
                funded activities, functions, or programs for 
                the homeless.
                  (E) Report.--Not later than the first quarter 
                of the first full fiscal year after the date of 
                the enactment of the Homeless Housing Programs 
                Consolidation and Flexibility Act and each 
                quarter thereafter, the Secretary and 
theChairperson of the Interagency Council on the Homeless shall report 
to Congress on--
                          (i) the need for any reprogramming or 
                        transfer of funds appropriated for 
                        federally funded activities, functions, 
                        or programs for the homeless; and
                          (ii) any funds appropriated for 
                        federally funded activities, functions, 
                        or programs for the homeless that were 
                        reprogrammed or transferred during the 
                        quarter covered by the report.
  (n) Consultation Regarding Use of National Guard Facilities 
as Homeless Shelters.--The Secretary may not provide a grant 
for a fiscal year from amounts for such year allocated under 
section 406(c) for use under subtitle C for a State unless the 
State has, consulted with the Secretary regarding the 
possibility of making any space at National Guard facilities 
under the jurisdiction of the State available, during such 
fiscal year, for use by homeless organizations to provide 
shelter to homeless persons, but only at the times that such 
space is not actively being used for National Guard purposes or 
other public purposes already undertaken.

SEC. 409. SUPPORTIVE SERVICES.

  (a) Requirement.--To the extent allowed by this title, each 
project sponsor administering permanent housing development 
assistance provided with amounts under this title or a 
supportive housing facility or emergency shelter assisted with 
such amounts shall provide supportive services for residents of 
the dwelling units or facility or shelter assisted. The array 
of supportive services provided may be designed by the grantee 
or the project sponsor administering the assistance, facility, 
or shelter. A project sponsor administering a supportive 
housing facility shall provide supportive services for other 
homeless persons using the facility.
  (b) Targeting Populations With Special Needs.--Supportive 
services provided with grant amounts under this title shall 
address the special needs of homeless persons (such as homeless 
persons with disabilities, homeless persons with acquired 
immunodeficiency syndrome and related diseases, homeless 
persons who have chronic problems with alcohol or drugs (or 
both), veterans who are homeless, and homeless families with 
children) intended to be served.
  (c) Services.--Supportive services may include activities 
such as--
          (1) establishing and operating a child care services 
        program for homeless families;
          (2) establishing and operating an employment 
        assistance program;
          (3) providing outpatient health services, food, and 
        case management;
          (4) providing assistance in obtaining permanent 
        housing, employment counseling, and nutritional 
        counseling;
          (5) providing security arrangements necessary for the 
        protection of residents of supportive housing or 
        emergency shelters and for homeless persons using 
        supportive housing facilities;
          (6) providing assistance in obtaining other Federal, 
        State, and local assistance available for such 
        residents and persons (including mental health 
        benefits, employment counseling, and medical 
        assistance, but not including major medical equipment); 
        and
          (7) providing other appropriate services.
  (d) Provision of Services.--Supportive services provided with 
grant amounts under this title may be provided directly by the 
grantee, by the project sponsor administering the permanent 
housing development assistance or the facility or shelter, or 
by contract with other public or private service providers. 
Such services provided in connection with a supportive housing 
facility may be provided to homeless persons who do not reside 
in the supportive housing, but only to the extent consistent 
with the comprehensive housing affordability strategy under 
section 105 of the Cranston-Gonzalez National Affordable 
Housing Act for the applicable jurisdiction.

SEC. 410. NONDISCRIMINATION IN PROGRAMS AND ACTIVITIES.

  No person in the United States shall on the basis of race, 
color, national origin, religion, or sex be excluded from 
participation in, be denied the benefits of, or be subjected to 
discrimination under any program or activity funded in whole or 
in part with funds made available under this subtitle. Any 
prohibition against discrimination on the basis of age under 
the Age Discrimination Act of 1975 or with respect to an 
otherwise qualified handicapped individual, as provided in 
section 504 of the Rehabilitation Act of 1973, shall also apply 
to any such program or activity.

          Subtitle B--Permanent Housing Development Activities

SEC. 411. USE OF AMOUNTS AND GENERAL REQUIREMENTS.

  (a) Use of Amounts for Permanent Housing Development.--
          (1) Authorized use.--A State, metropolitan city, or 
        urban county that receives a grant under section 
        402(b)(2) from amounts allocated for use under this 
        subtitle may use grant amounts (and any supplemental 
        amounts provided under section 407) only to carry out 
        permanent housing development activities within such 
        State, metropolitan city, or urban county. For purposes 
        of this subtitle, the term ``permanent housing 
        development activities'' means activities to construct, 
        substantially rehabilitate, or acquire structures to 
        provide permanent housing, including the capitalization 
        of a dedicated project account from which long-term 
        assistance payments (which may include operating costs 
        or rental assistance) can be made in order to 
        facilitate such activities, and activities under 
        section 441 of the Stewart B. McKinney Homeless 
        Assistance Act, as in effect on October 31, 1997 
        (subject to the limitation in section 406(b)(3) of this 
        Act).
          (2) Use for supportive services prohibited.--Amounts 
        allocated for use under this subtitle may not be used 
        for supportive services activities.
  (b) Use Through Nonprofit Organizations.--
          (1) In general.--A grantee that receives grant 
        amounts for a fiscal year for use under this subtitle 
        may, pursuant to section404, provide such amounts to 
units of general local government and private nonprofit organizations 
for use in accordance with this subtitle, except that the grantee shall 
ensure that more than 50 percent of the amounts received by the grantee 
for the fiscal year are used through private nonprofit organizations.
          (2) Waiver of use of nonprofit requirement.--The 
        Secretary may waive the requirement under paragraph (1) 
        that a grantee ensure that more than 50 percent of the 
        amounts received by the grantee for the fiscal year are 
        used through private nonprofit organizations if the 
        Secretary determines that there are not sufficient 
        private nonprofit organizations available to the 
        grantee to meet that requirement.
  (c) Administrative Fee.--To the extent provided in section 
408(g), grant amounts provided under this subtitle may be used 
by the project sponsor providing such assistance for costs of 
administering such assistance.
  (d) Targeting Populations With Special Needs.--To the maximum 
extent practicable, a grantee shall provide for use of grant 
amounts made available under this subtitle in a manner that 
provides permanent housing for homeless persons with 
disabilities, homeless persons with acquired immunodeficiency 
syndrome or related diseases, homeless persons who have chronic 
problems with alcohol or drugs (or both), homeless families 
with children, and veterans who are homeless.

SEC. 412. PERMANENT HOUSING DEVELOPMENT.

  (a) In General.--Housing shall be considered permanent 
housing for purposes of this title if the housing--
          (1) provides long-term housing for homeless persons;
          (2) complies with any applicable State and local 
        housing codes, licensing requirements, or other 
        requirement in the jurisdiction in which the housing is 
        located, including any applicable State or local 
        requirements regarding the number of occupants in such 
        a facility; and
          (3) complies with the requirement under section 
        409(a) regarding providing supportive services for 
        homeless persons.
  (b) Clarification.--Permanent housing may--
          (1) be restricted for occupancy by homeless persons 
        with disabilities;
          (2) consist of or contain full dwelling units or 
        dwelling units that do not contain bathrooms or kitchen 
        facilities; and
          (3) be provided in the form of rental housing, 
        cooperative housing, shared living arrangements, single 
        family housing, or other types of housing arrangements.

          Subtitle C--Flexible Block Grant Homeless Assistance

SEC. 421. ELIGIBLE ACTIVITIES.

  (a) In General.--Grant amounts allocated for use under this 
subtitle may be used only for carrying out the following 
activities:
          (1) Acquisition and rehabilitation of supportive 
        housing.--For acquisition or rehabilitation of an 
        existing structure (including a small commercial 
        property or office space) to provide supportive housing 
        other than emergency shelter or to provide supportive 
        services; the repayment of any outstanding debt owed on 
        a loan made to purchase an existing structure for use 
        as supportive housing shall be considered to be a cost 
        of acquisition under this paragraph if the structure 
        was not used as supportive housing or to provide 
        supportive services, before assistance is provided 
        using grant amounts.
          (2) New construction of supportive housing.--For new 
        construction of a structure to be used as supportive 
        housing.
          (3) Leasing of supportive housing.--For leasing of an 
        existing structure or structures, or portions thereof, 
        to provide supportive housing or supportive services 
        during the period covered by the application.
          (4) Operating costs for supportive housing.--For 
        covering operating costs of supportive housing (which 
        shall include capital costs for utilizing any 
        interactive computer or telephone services and other 
        electronic information networks and systems appropriate 
        for assisting homeless families); except that grant 
        amounts provided under this subtitle may not be used to 
        cover more than 75 percent of the annual operating 
        costs of such housing.
          (5) Homelessness prevention.--
                  (A) In general.--For activities designed to 
                help persons (including veterans who are at 
                risk of becoming homeless, and families avoid 
                becoming homeless), which shall include 
                assistance for making mortgage payments, rental 
                payments, and utility payments and any 
                activities other than those found by the 
                Secretary to be inconsistent with the purposes 
                of this Act.
                  (B) Persons eligible for assistance.--
                Assistance under this paragraph may be provided 
                only to very low-income families who have 
                received eviction (or mortgage delinquency or 
                foreclosure) notices or notices of termination 
                of utility services and who--
                          (i) are unable to make the required 
                        payments due to a sudden reduction in 
                        income;
                          (ii) need such assistance to avoid 
                        homelessness due to the eviction or 
                        termination of services; and
                          (iii) have a reasonable prospect of 
                        being able to resume payments within a 
                        reasonable period of time.
                  (C) Limitation.--Assistance under this 
                paragraph may be provided only if such 
                assistance will not supplant funding for 
                preexisting homelessness prevention activities 
                from other services.
          (6) Permanent housing development activities.--For 
        providing permanent housing development activities as 
        described in subtitle B.
          (7) Emergency shelter.--For--
                  (A) renovation, major rehabilitation, or 
                conversion of a building or buildings to be 
                used as emergency shelters;
                  (B) covering costs of supportive services in 
                connection with an emergency shelter, if such 
                services do not supplant any services provided 
                by the local government during anypart of the 
12-month period ending on the date of the commencement of the operation 
of the emergency shelter; and
                  (C) covering costs relating to maintenance, 
                operation, insurance, utilities, and 
                furnishings for emergency shelters.
          (8) Supportive services.--To the extent provided in 
        section 406, for covering costs of supportive services 
        provided to homeless persons in connection with a 
        permanent or supportive housing facility or otherwise.
          (9) Technical assistance.--For technical assistance 
        in carrying out the purposes of this title, except that 
        the Secretary may provide such technical assistance 
        directly to any grantee, including nonprofit sponsors 
        who are proposing project applications for populations 
        with special needs.
  (b) Use for Housing Activities.--Of the aggregate of any 
grant amounts provided to a grantee for a fiscal year for use 
under this subtitle and the supplemental amounts provided for 
such fiscal year by the grantee in accordance with section 407, 
the grantee shall ensure that an amount that is not less than 
such grant amounts (less any amount used pursuant to section 
408(g)) is used for eligible activities described in paragraphs 
(1) through (6) of subsection (a).

SEC. 422. USE OF AMOUNTS THROUGH PRIVATE NONPROFIT PROVIDERS.

  (a) In General.--In each fiscal year, each grantee of amounts 
for use under this subtitle shall ensure that more than 50 
percent of the amounts received by the grantee for such fiscal 
year are used for carrying out eligible activities under 
section 421 through project sponsors that are private nonprofit 
organizations.
  (b) Waiver.--The Secretary may waive the requirement under 
subsection (a) that a grantee ensure that more than 50 percent 
of the amounts received by the grantee for the fiscal year are 
used through private nonprofit organizations if the Secretary 
determines that there are not sufficient private nonprofit 
organizations available to the grantee to meet that 
requirement.

SEC. 423. SUPPORTIVE HOUSING.

  (a) In General.--Housing shall be considered supportive 
housing for purposes of this subtitle if--
          (1) the housing complies with the requirement under 
        section 409(a) regarding providing supportive services 
        for homeless persons;
          (2) the housing complies with any applicable State 
        and local housing codes and licensing requirements in 
        the jurisdiction in which the housing is located; and
          (3) the housing--
                  (A) is transitional housing; or
                  (B) is permanent supportive housing as 
                described in section 412.
  (b) Transitional Housing.--For purposes of this section, the 
term ``transitional housing'' means housing, the purpose of 
which is to facilitate the movement of homeless persons and 
families to permanent housing within 24 months or such longer 
period as the Secretary determines necessary. Assistance may be 
denied for housing based on a violation of this subsection only 
if a substantial number of homeless persons or families have 
remained in the housing longer than such period.
  (c) Single Room Occupancy Dwellings.--For purposes of this 
section, a facility may provide supportive housing or 
supportive services in dwelling units that do not contain 
bathrooms or kitchen facilities and are appropriate for use as 
supportive housing or in facilities containing some or all such 
dwelling units.
  (d) Safe Haven Housing.--For purposes of this section, 
supportive housing may be a structure or a clearly identifiable 
portion of a structure that--
                  (A) provides housing and low-demand services 
                and referrals for homeless individual with 
                serious mental illness--
                          (i) who are currently residing 
                        primarily in places not designed for, 
                        or ordinarily used as, a regular 
                        sleeping accommodation for human 
                        beings; and
                          (ii) who have been unwilling or 
                        unable to participate in mental health 
                        or substance abuse treatment programs 
                        or to receive other supportive 
                        services; except that a person whose 
                        sole impairment is substance abuse 
                        shall not be considered an eligible 
                        person;
                  (B) provides 24-hour residence for eligible 
                individuals who may reside for an unspecified 
                duration;
                  (C) provides private or semi-private 
                accommodations;
                  (D) may provide for the common use of kitchen 
                facilities, dining rooms, and bathrooms;
                  (E) may provide supportive services to 
                eligible persons who are not residents on a 
                drop-in basis; and
                  (F) provides occupancy limited to no more 
                than 25 persons.

SEC. 424. EMERGENCY SHELTER.

  (a) In General.--A facility shall be considered emergency 
shelter for purposes of this subtitle if the facility is 
designed to provide overnight sleeping accommodations for 
homeless persons and complies with the requirements under this 
section. An emergency shelter may include appropriate eating 
and cooking accommodations.
  (b) Requirements.--Grant amounts under this subtitle may be 
used for eligible activities under section 421(a)(7) relating 
to emergency shelter only if--
          (1) the Secretary determines that--
                  (A) use of such amounts is necessary to meet 
                the emergency shelter needs of the jurisdiction 
                in which the facility is located; and
                  (B) the use of such amounts for such 
                activities will not violate the prohibition 
                under section 408(f); and
          (2) the project sponsor agrees that it will--
                  (A) in the case of assistance involving major 
                rehabilitation or conversion of a building, 
                maintain the building as a shelter for homeless 
                persons and families for not less than a 10-
                year period unless, within such 10-year period, 
                the need for maintaining the building as a 
                full-time shelter ceases to exist and the 
                building is used for the remainder of such 
                period to carry out other eligible activities 
                under this subtitle;
                  (B) in the case of assistance involving 
                rehabilitation (other than major rehabilitation 
                or conversion of a building), maintain the 
                building as a shelter for homeless persons and 
                families for not less than a 3-year period;
                  (C) in the case of assistance involving only 
                activities described in subparagraphs (B) and 
                (C) of section 421(a)(7), provide services or 
                shelter to homeless persons and families at the 
                original site or structure or other sites or 
                structures serving the same general population 
                for the period during which such assistance is 
                provided;
                  (D) comply with the standards of housing 
                quality applicable under section 408(h); and
                  (E) assist homeless persons in obtaining--
                          (i) appropriate supportive services, 
                        including permanent housing, medical 
                        and mental health treatment (including 
                        information and counseling regarding 
                        the benefits and availability of child 
                        immunization), counseling, supervision, 
                        veterans benefits, and other services 
                        essential for achieving independent 
                        living; and
                          (ii) other Federal, State, local, and 
                        private assistance available for 
                        homeless persons.

            Subtitle D--Reporting, Definitions, and Funding

SEC. 431. PERFORMANCE REPORTS BY GRANTEES.

  (a) Requirement.--For each fiscal year, each grantee under 
this title shall review and report, in a form acceptable to the 
Secretary, on the progress it has made during such fiscal year 
in carrying out the activities described in the application 
resulting in such grant and the relationship of such activities 
to the comprehensive housing affordability strategy under 
section 105 of the Cranston-Gonzalez National Affordable 
Housing Act for the applicable jurisdiction.
  (b) Content.--Each report under this section for a fiscal 
year shall--
          (1) describe the use of grant amounts provided to the 
        grantee for such fiscal year;
          (2) to the extent practicable until the development 
        of a reasonable methodology by the Secretary and the 
        Interagency Council on the Homeless, describe the 
        number of homeless persons and families, including 
        populations with special needs provided shelter, 
        housing, or assistance using such grant amounts;
          (3) assess the relationship of such use to the goals 
        identified pursuant to section 105(b)(2) of the 
        Cranston-Gonzalez National Affordable Housing Act in 
        the comprehensive housing affordability strategy for 
        the applicable jurisdiction;
          (4) indicate the grantee's programmatic 
        accomplishments;
          (5) describe how the grantee would change its 
        programs as a result of its experiences; and
          (6) describe any delays that occurred in the start up 
        of programs and the reason for each delay.
  (c) Submission.--The Secretary shall establish dates for 
submission of reports under this section and review such 
reports and make such recommendations as the Secretary 
considers appropriate to carry out the purposes of this title. 
The Secretary may withhold or reallocate funds granted to a 
grantee if the Secretary finds that the grantee has complied 
with applicable program requirements, but not substantially 
complied with the application that the grantee submitted to 
obtain such funds.
  (d) Public Availability.--
          (1) In general.--A grantee preparing a report under 
        this section shall make the report publicly available 
        to the citizens in the jurisdiction of the grantee in 
        sufficient time to permit such citizens to comment on 
        such report prior to its submission to the Secretary, 
        and in such manner and at such times as the grantee may 
        determine. The report shall include a summary of any 
        such comments received by the grantee regarding its 
        program.
          (2) Electronic access.--A grantee may comply with the 
        requirement under paragraph (1) by making the report 
        available through interactive computer or telephone 
        services or other electronic information networks and 
        systems appropriate for making such information widely 
        publicly available. The Secretary shall make each final 
        report submitted under this section publicly available 
        through such a computer, telephone, or information 
        service, network, or system.
  (e) Authority of secretary.--The Secretary shall establish 
procedures appropriate and practicable for providing a fair 
hearing and timely resolution of citizen complaints related to 
performance reports under this section.

SEC. 432. ANNUAL REPORT BY SECRETARY.

  The Secretary shall include in the annual report, under 
section 8 of the Department of Housing and Urban Development 
Act, information summarizing the activities carried out under 
this title and setting forth the findings, conclusions, and 
recommendations of the Secretary as a result of the activities. 
Such information shall be made publicly available through 
interactive computer or telephone services or other electronic 
information networks and systems appropriate for making such 
information widely available to the public.

SEC. 433. DEFINITIONS.

  For purposes of this title, the following definitions shall 
apply:
          (1) Applicant.--The term ``applicant'' means an 
        eligible grantee that submits an application under 
        section 408(a) for a grant under this title.
          (2) Eligible grantee.--The term ``eligible grantee'' 
        is defined in section 403.
          (3) Facility.--The term ``facility'' means a 
        structure or structures (or a portion of such structure 
        or structures) that are assisted through eligible 
        activities under subtitle C with grant amounts under 
        this title (or for which the Secretary provides 
        technical assistance under section 421(a)(9)).
          (4) Grantee.--The term ``grantee'' means an applicant 
        that receives a grant under this title.
          (5) Insular area.--The term ``insular area'' means 
        each of the Virgin Islands, Guam, American Samoa, the 
        Northern Mariana Islands, and any other territory or 
        possession of the United States.
          (6) Metropolitan city, urban county, and unit of 
        general local government.--The terms ``metropolitan 
        city'', ``urban county'', and ``unit of general local 
        government'' have the meanings given the terms in 
        section 102 of the Housing and Community Development 
        Act of 1974.
          (7) Nonentitlement area.--The term ``nonentitlement 
        area'' means an area that is not a metropolitan city or 
        part of an urban county and does not include Indian 
        tribes or insular areas.
          (8) Operating costs.--The term ``operating costs'' 
        means expenses incurred by a grantee operating 
        supportive housing assisted with grant amounts under 
        this title, with respect to--
                  (A) the administration, maintenance, repair, 
                and security of such housing;
                  (B) utilities, fuel, furnishings, and 
                equipment for such housing; and
                  (C) the conducting of the assessment under 
                section 408(b)(2).
          (9) Outpatient health services.--The term 
        ``outpatient health services'' means outpatient health 
        care, outpatient mental health services, outpatient 
        substance abuse services, and case management.
          (10) Person with disabilities.--The term ``person 
        with disabilities'' means a person who--
                  (A) has a disability as defined in section 
                223 of the Social Security Act;
                  (B) is determined to have, pursuant to 
                regulations issued by the Secretary, a 
                physical, mental, or emotional impairment which 
                (i) is expected to be of long-continued and 
                indefinite duration, (ii) substantially impedes 
                an individual's ability to live independently, 
                and (iii) is of such a nature that such ability 
                could be improved by more suitable housing 
                conditions; or
                  (C) has a developmental disability as defined 
                in section 102 of the Developmental 
                Disabilities Assistance and Bill of Rights Act.
        Such term shall not exclude persons who have the 
        disease of acquired immunodeficiency syndrome or any 
        conditions arising from the etiologic agent for 
        acquired immunodeficiency syndrome.
          (11) Private nonprofit organization.--The term 
        ``private nonprofit organization'' means any private 
        organization that--
                  (A) is organized under State or local laws;
                  (B) has no part of its net earnings inuring 
                to the benefit of any member, founder, 
                contributor, or individual;
                  (C) complies with standards of financial 
                accountability acceptable to the Secretary; and
                  (D) has among its purposes significant 
                activities related to the provision of--
                          (i) decent housing that is affordable 
                        to low-income and moderate-income 
                        families; or
                          (ii) shelter, housing, or services 
                        for homeless persons or families or for 
                        persons or families at risk of becoming 
                        homeless.
          (12) Project sponsor.--The term ``project sponsor'' 
        means an entity that uses grant amounts under this 
        title to carry out a permanent housing development 
        program under subtitle B or eligible activities under 
        subtitle C. The term includes a grantee carrying out 
        such a program or activities.
          (13) Secretary.--The term ``Secretary'' means the 
        Secretary of Housing and Urban Development.
          (14) State.--The term ``State'' means each of the 
        several States and the Commonwealth of Puerto Rico.
          (15) Supportive housing.--The term ``supportive 
        housing'' means a facility that meets the requirements 
        of section 423.
          (16) Supportive services.--The term ``supportive 
        services'' means services under section 409.
          (17) Very low-income families.--The term ``very low-
        income families'' has the same meaning given the term 
        under section 3(b) of the United States Housing Act of 
        1937 (or any other subsequent provision of Federal law 
        defining such term for purposes of eligibility for, or 
        rental charges in, public housing).

SEC. 434. REGULATIONS.

  (a) Issuance.--Not later than the expiration of the 30-day 
period beginning upon the date of the enactment of the Homeless 
Housing Programs Consolidation and Flexibility Act, the 
Secretary shall issue interim regulations to carry out this 
title. The Secretary shall issue final regulations to carry out 
this title after notice and opportunity for public comment 
regarding the interim regulations in accordance with the 
procedure under section 553 of title 5, United States Code, 
applicable to substantive rules (notwithstanding subsections 
(a)(2), (b)(B), and (d)(3) of such section), but not later than 
the expiration of the 90-day period beginning upon the date of 
the enactment of the Homeless Housing Programs Consolidation 
and Flexibility Act.
  (b) Rule of Construction.--Any failure by the Secretary to 
issue any regulations under this section shall not affect the 
effectiveness of any provision of this title pursuant to 
section 4(b) of the Homeless Housing Programs Consolidation and 
Flexibility Act.

SEC. 435. AUTHORIZATION OF APPROPRIATIONS.

  (a) In General.--There are authorized to be appropriated for 
grants under this title $1,000,000,000 for each of fiscal years 
1998, 1999, 2000, 2001, and 2002.
  (b) Prohibition on Set Asides.--Notwithstanding any other 
provision of law, any attempt to put any restriction on the use 
of funds appropriated for this title (such as for use in 
special projects) shall be considered an appropriation without 
authorization and shall be without force or effect.
          * * * * * * *

                              ----------                              


             SECTION 2 OF THE HUD DEMONSTRATION ACT OF 1993

[SEC. 2. INNOVATIVE HOMELESS INITIATIVES DEMONSTRATION PROGRAM.

  [(a) Purpose.--The purpose of this section is to enable the 
Secretary of Housing and Urban Development (hereafter in this 
Act referred to as the ``Secretary''), through cooperative 
efforts in partnership with other levels of government and the 
private sector, including nonprofit organizations, foundations, 
and communities, to demonstrate methods of undertaking 
comprehensive strategies for assisting homeless individuals and 
families (including homeless individuals who have AIDS or who 
are infected with HIV), through a variety of activities, 
including the coordination of efforts and the filling of gaps 
in available services and resources. In carrying out the 
demonstration, the Secretary shall--
          [(1) provide comprehensive homeless demonstration 
        grants under subsection (c); and
          [(2) provide innovative project funding under 
        subsection (d).
  [(b) Definitions.--For purposes of this section, the 
following definitions shall apply:
          [(1) Homeless individual.--The term ``homeless 
        individual'' has the meaning given such term in section 
        103 of the Stewart B. McKinney Homeless Assistance Act.
          [(2) Homeless family.--The term ``homeless family'' 
        means a group of one or more related individuals who 
        are homeless individuals.
          [(3) Incorporated definitions.--The terms ``State'', 
        ``metropolitan city'', ``urban county'', ``unit of 
        general local government'', and ``Indian tribe'' have 
        the meanings given such terms in section 102(a) of the 
        Housing and Community Development Act of 1974.
          [(4) Jurisdiction.--The term ``jurisdiction'' means a 
        State, metropolitan city, urban county, unit of general 
        local government (including units in rural areas), or 
        Indian tribe.
          [(5) Nonprofit organization.--The term ``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, in the case of a private nonprofit 
                organization, 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.
          [(6) Very low-income families.--The term ``very low-
        income families'' has the meaning given such term in 
        section 3 of the United States Housing Act of 1937.
  [(c) Comprehensive Homeless Initiative.--
          [(1) Designation.--The Secretary shall designate such 
        jurisdictions as the Secretary may determine for 
        comprehensive homeless initiative funding under this 
        subsection.
          [(2) Authority.--The Secretary may provide assistance 
        under this subsection to--
                  [(A) jurisdictions designated under paragraph 
                (1) (or entities or instrumentalities 
                established under the authority of such 
                jurisdictions); or
                  [(B) nonprofit organizations operating within 
                such jurisdictions,
        establish comprehensive homeless initiatives to carry 
        out the purpose of this section.
          [(3) Criteria.--The Secretary shall establish 
        criteria for designating jurisdictions under paragraph 
        (1), which shall include--
                  [(A) the extent of homelessness in the 
                jurisdiction;
                  [(B) the extent to which the existing public 
                and private systems for homelessness 
                prevention, outreach, assessment, shelter, 
                services, transitional services, transitional 
                housing, and permanent housing available within 
                the jurisdiction would benefit from additional 
                resources to achieve a comprehensive approach 
                to meeting the needs of individuals and 
                families who are homeless or who are very low-
                income and at risk of homelessness;
                  [(C) the demonstrated willingness and 
                capacity of the jurisdiction to work 
                cooperatively with the Department of Housing 
                and Urban Development (hereafter in this Act 
                referred to as the ``Department''), nonprofit 
                organizations, foundations, other private 
                entities, and the community to design and 
                implement an initiative to achieve the purposes 
                of this subsection;
                  [(D) the demonstrated willingness of 
                nongovernmental organizations to commit 
                financial and other resources to a 
                comprehensive homeless initiative in the 
                jurisdiction;
                  [(E) the commitment of the jurisdiction to 
                make necessary changes in policy and procedure 
                to provide sufficient flexibility and resources 
                as necessary to implement and sustain the 
                initiative;
                  [(F) national geographic diversity in the 
                designation of jurisdiction; and
                  [(G) such other factors as the Secretary 
                determines to be appropriate.
          [(4) Consultation.--Prior to designating 
        jurisdictions under paragraph (1), the Secretary shall 
        consult with the Committee on Banking, Finance and 
        Urban Affairs of the House of Representatives and the 
        Committee on Banking, Housing, and Urban Affairs of the 
        Senate regarding such designations.
          [(5) Comprehensive strategy.--Recipients of 
        assistance under this subsection shall, in cooperation 
        with the Secretary, other governmental entities, 
        nonprofit organizations, foundations, other private 
        entities, and the community, develop a comprehensive 
        plan that--
                  [(A) sets forth a realistic and feasible 
                strategy that contains specific projects and 
                activities to carry out the purpose of this 
                section;
                  [(B) demonstrates the willingness of the 
                appropriate government and private entities and 
                other parties to participate cooperatively in 
                this plan;
                  [(C) specifies the projects and activities to 
                be funded under this subsection;
                  [(D) provides an estimate of the cost of 
                implementing the initiative funded under this 
                subsection;
                  [(E) enumerates amounts to be made available 
                to fund the comprehensive homeless initiative 
                by participating governmental entities, 
                nonprofit organizations, foundations, and the 
                community, as appropriate, and requests funds 
                from the Secretary pursuant to this subsection; 
                and
                  [(F) provides such other information as the 
                Secretary determines to be appropriate.
          [(6) Designation.--The designation referred to in 
        paragraph (1) and assistance provided under paragraph 
        (2) shall be made on a noncompetitive basis.
  [(d) Innovative Project Funding.--
          [(1) Authority.--The Secretary is authorized to 
        provide assistance under this subsection to 
        jurisdictions and nonprofit organizations operating 
        within such jurisdictions to establish innovative 
        programs to carry out the purpose of this section.
          [(2) Applications.--Applications for assistance under 
        this subsection shall be in such form, and shall 
        include such information, as the Secretary shall 
        determine. Each application shall include--
                  [(A) a description of the extent of 
                homelessness in the jurisdiction;
                  [(B) an explanation of the extent to which 
                the existing systems, both public and private, 
                for homelessness prevention, outreach, 
                assessment, shelter, services, transitional 
                services, transitional housing, and permanent 
                housing available within the jurisdiction would 
                benefit from additional resources to achieve a 
                comprehensive approach to meeting the needs of 
                individuals and families who are homeless, or 
                who are very low-income and at risk of 
                homelessness;
                  [(C) a description of the projects and 
                activities for which the applicant is 
                requesting funding under this subsection and 
                the amounts requested;
                  [(D) the demonstrated willingness and 
                capacity of the jurisdiction to work 
                cooperatively with the Department, nonprofit 
                organizations, foundations, other private 
                entities, and the community, to the extent 
                feasible, to design and implement an initiative 
                to achieve the purposes of this subsection;
                  [(E) a statement of commitment from the 
                jurisdiction to make necessary changes in 
                policy and procedure to provide sufficient 
                flexibility and resources as necessary to 
                implement and sustain the program; and
                  [(F) such other information as the Secretary 
                determines to be appropriate.
          [(3) Criteria.--The Secretary shall establish 
        selection criteria for awarding assistance under this 
        subsection, which shall include--
                  [(A) the extent to which the program 
                described in the application achieves the 
                purpose of this section;
                  [(B) the extent to which the applicant 
                demonstrates the capacity to implement a 
                program that achieves the purpose of this 
                section;
                  [(C) the extent to which the program 
                described in the application is innovative and 
                may be replicated or may serve as a model for 
                implementation in other jurisdictions;
                  [(D) diversity by geography and community 
                type; and
                  [(E) such other criteria as the Secretary 
                determines to be appropriate.
  [(e) Reports.--
          [(1) Recipients of funds.--Each recipient of funds 
        under subsections (c) and (d) shall submit to the 
        Secretary a report or series of reports, in a form and 
        at a time specified by the Secretary. Each report 
        shall--
                  [(A) describe the use of funds made available 
                under this section; and
                  [(B) include a description and an analysis of 
                the programs and projects funded, the 
                innovative approaches taken, and the level of 
                cooperation among participating parties.
          [(2) Interim hud report.--The Secretary shall submit 
        to the Congress, in conjunction with the 1995 
        legislative recommendations of the Department, a report 
        describing the results of the demonstration program 
        funded under this section to date. The report shall 
        contain a summary and analysis of all information 
        contained in any reports received by the Secretary 
        pursuant to paragraph (1) and shall contain 
        recommendations for future action.
          [(3) Final hud report.--Not later than 3 months after 
        all recipient reports have been submitted under 
        paragraph (1), the Secretary shall submit to the 
        Congress a final report. The Secretary's final report 
        shall contain a summary and analysis of all information 
        contained in the reports received by the Secretary 
        pursuant to paragraph (1) and shall contain 
        recommendations for future action.
  [(f) Authorization of Appropriations.--There are authorized 
to be appropriated $200,000,000 for fiscal year 1994 to carry 
out this section. Of the amounts appropriated pursuant to this 
subsection, not less than 25 percent shall be used to carry out 
innovative project funding under subsection (d). All funds 
shall remain available until expended.
  [(g) Repeal.--This section shall be repealed effective on 
October 1, 1994.]

                              ----------                              


   SECTION 1407 OF THE HOUSING AND COMMUNITY DEVELOPMENT ACT OF 1992

[SEC. 1407. FHA SINGLE FAMILY PROPERTY DISPOSITION.

  [(a) 30-Day Marketing Period.--Except as provided in 
subsection (b), in carrying out the program for disposition of 
single family properties acquired by the Department of Housing 
and Urban Development for use by the homeless under subpart E 
of part 291 of title 24, Code of Federal Regulations, the 
Secretary ofHousing and Urban Development may not make any 
eligible property available for lease under such program that has not 
been listed and made generally available for sale by the Secretary for 
a period of at least 30 days.
  [(b) Exception.--With respect to any area for which the 
Secretary determines that there will not be a sufficient 
quantity of decent, safe, and sanitary affordable housing 
available for use under the program referred to in subsection 
(a) if eligible properties located in the area are made 
generally available for the 30-day period under subsection (a), 
the Secretary shall reserve for disposition under such program 
not more than 10 percent of the total number of eligible 
properties located in the area and shall not market such 
properties as provided under subsection (a). The Secretary 
shall consult with the unit of general local government for an 
area in determining which properties should be reserved for 
disposition under this subsection.
  [(c) State and Local Taxes.--
          [(1) Requirement to provide information upon 
        request.--In carrying out the program referred to in 
        subsection (a), the Secretary of Housing and Urban 
        Development shall provide the information described in 
        paragraph (2) to any lessee or applicant under the 
        program who requests such information.
          [(2) Content.--The information referred in paragraph 
        (1) shall identify and describe any exemptions or 
        reductions relating to payment of property taxes under 
        State and local laws (for the jurisdictions for which 
        the lessee or applicant requests such information) that 
        may be applicable to lessees or applicants, or to 
        properties leased, under such program.
          [(3) Exemption from escrow requirement.--To the 
        extent any lessee of a property under the program 
        referred to in subsection (a) is provided an exemption 
        from any requirement to pay State or local taxes, or a 
        reduction in the amount of any such taxes, the 
        Secretary may not require the lessee to pay or deposit 
        in any escrow account amounts for the payment of such 
        taxes.]

                              ----------                              


                 SECTION 516 OF THE HOUSING ACT OF 1949

  financial assistance to provide low-rent housing for domestic farm 
                                 labor

      Sec. 516. (a) * * *
          * * * * * * *
      [(k) Housing for Rural Homeless and Migrant 
Farmworkers.--
          [(1) In general.--The Secretary may provide financial 
        assistance for providing affordable rental housing and 
        related facilities for migrant farmworkers and homeless 
        individuals (and the families of such individuals) to 
        applicants as provided in this subsection.
          [(2) Types of assistance.--
                  [(A) In general.--The Secretary may provide 
                the following assistance for housing under this 
                subsection:
                          [(i) An advance, in an amount not to 
                        exceed $400,000, of the cost of 
                        acquisition, substantial 
                        rehabilitation, or acquisition and 
                        rehabilitation of an existing structure 
                        or construction of a new structure for 
                        use in the provision of housing under 
                        this subsection. The repayment of any 
                        outstanding debt owed on a loan made to 
                        purchase an existing structure shall be 
                        considered to be a cost of acquisition 
                        eligible for an advance under this 
                        subparagraph if the structure was not 
                        used for the purposes under this 
                        subsection prior to the receipt of 
                        assistance.
                          [(ii) A grant, in an amount not to 
                        exceed $400,000, for moderate 
                        rehabilitation of an existing structure 
                        for use in the provision of housing 
                        under this subsection.
                          [(iii) Annual payments for operating 
                        costs of such housing (without regard 
                        to whether the housing is an existing 
                        structure), not to exceed 75 percent of 
                        the annual operating costs of such 
                        housing.
                  [(B) Available assistance.--A recipient may 
                receive assistance under both clauses (i) and 
                (ii) of subparagraph (A). The Secretary may 
                increase the limit contained in such clauses to 
                $800,000 in areas which the Secretary finds 
                have high acquisition and rehabilitation costs.
                  [(C) Repayment of advance.--Any advance 
                provided under subparagraph (A)(i) shall be 
                repaid on such terms as may be prescribed by 
                the Secretary when the project ceases to be 
                used as housing in accordance with the 
                provisions of this subsection. Recipients shall 
                be required to repay 100 percent of the advance 
                if the housing is used for purposes under this 
                subsection for fewer than 10 years following 
                initial occupancy. If the housing is used for 
                such purposes for more than 10 years, the 
                percentage of the amount that shall be required 
                to be repaid shall be reduced by 10 percentage 
                points for each year in excess of 10 that the 
                property is so used.
                  [(D) Prevention of undue benefits.--Upon any 
                sale or other disposition of housing acquired 
                or rehabilitated with assistance under this 
                subsection prior to the close of 20 years after 
                the housing is placed in service, other than a 
                sale or other disposition resulting in the use 
                of the project for the direct benefit of low 
                income persons or where all of the proceeds are 
                used to provide housing for migrant farmworkers 
                and homeless individuals (and the families of 
                such individuals), the recipient shall comply 
                with such terms and conditions as the Secretary 
                may prescribe to prevent the recipient from 
                unduly benefiting from the sale or other 
                disposition of the project.
          [(3) Program requirements.--
                  [(A) Applications.--
                          [(i) Applications for assistance 
                        under this subsection shall be 
                        submitted by an applicant in suchform 
and in accordance with such procedures as the Secretary shall 
establish.
                          [(ii) The Secretary shall require 
                        that applications contain at a minimum 
                        (I) a description of the proposed 
                        housing, (II) a description of the size 
                        and characteristics of the population 
                        that would occupy the housing, (III) a 
                        description of any public and private 
                        resources that are expected to be made 
                        available in connection with the 
                        housing, (IV) a description of the 
                        housing needs for migrant farmworkers 
                        and homeless individuals (and the 
                        families of such individuals) in the 
                        area to be served by the housing, and 
                        (V) assurances satisfactory to the 
                        Secretary that the housing assisted 
                        will be operated for not less than 10 
                        years for the purpose specified in the 
                        application.
                          [(iii) The Secretary shall require 
                        that an application furnish reasonable 
                        assurances that the housing will be 
                        available for occupancy by homeless 
                        individuals (and the families of such 
                        individuals) only on an emergency and 
                        temporary basis during the offseason 
                        and shall be otherwise available for 
                        occupancy by migrant farmworkers (and 
                        their families).
                          [(iv) The Secretary shall require 
                        that an application furnish reasonable 
                        assurances that the applicant will own 
                        or have control of a site for the 
                        proposed housing not later than 6 
                        months after notification of an award 
                        for grant assistance. An applicant may 
                        obtain ownership or control of a 
                        suitable site different from the site 
                        specified in the application. If an 
                        applicant fails to obtain ownership or 
                        control of the site within 1 year after 
                        notification of an award for grant 
                        assistance, the grant shall be 
                        recaptured and reallocated.
                  [(B) Selection criteria.--The Secretary shall 
                establish selection criteria for a national 
                competition for assistance under this 
                subsection, which shall include--
                          [(i) the ability of the applicant to 
                        develop and operate the housing;
                          [(ii) the feasibility of the proposal 
                        in providing the housing;
                          [(iii) the need for such housing in 
                        the area to be served;
                          [(iv) the cost effectiveness of the 
                        proposed housing;
                          [(v) the extent to which the project 
                        would meet the needs of migrant 
                        farmworkers and homeless individuals 
                        (and the families of such individuals) 
                        in the State;
                          [(vi) the extent to which the 
                        applicant has control of the site of 
                        the proposed housing; and
                          [(vii) such other factors as the 
                        Secretary determines to be appropriate 
                        for purposes of this subsection.
                  [(C) Required agreements.--The Secretary may 
                not approve assistance for any housing under 
                this subsection unless the applicant agrees--
                          [(i) to operate the proposed project 
                        as housing for migrant farmworkers and 
                        homeless individuals (and the families 
                        of such individuals) in compliance with 
                        the provisions of this subsection and 
                        the application approved by the 
                        Secretary;
                          [(ii) to monitor and report to the 
                        Secretary on the progress of the 
                        housing; and
                          [(iii) to comply with such other 
                        terms and conditions as the Secretary 
                        may establish for purposes of this 
                        subsection.
                  [(D) Occupant rent.--Each migrant farmworker 
                and homeless individual residing in a facility 
                assisted under this subsection shall pay as 
                rent an amount determined in accordance with 
                the provisions of section 3(a) of the United 
                States Housing Act of 1937.
          [(4) Guidelines.--
                  [(A) Regulations.--Not later than 120 days 
                after the date of enactment of the Cranston-
                Gonzalez National Affordable Housing Act, the 
                Secretary shall by notice establish such 
                requirements as may be necessary to carry out 
                the provisions of this subsection.
                  [(B) Limitation on use of funds.--No 
                assistance received under this subsection (or 
                any State or local government funds used to 
                supplement such assistance) may be used to 
                replace other public funds previously used, or 
                designated for use, to assist homeless 
                individuals (and the families of such 
                individuals) or migrant farmworkers.
          [(5) Limitation on administrative expenses.--No 
        recipient may use more than 5 percent of an advance or 
        grant received under this subsection for administrative 
        purposes.
          [(6) Reports to congress.--The Secretary shall submit 
        annually to the Congress a report summarizing the 
        activities carried out under this subsection and 
        setting forth the findings, conclusions, and 
        recommendations of the Secretary as a result of the 
        activities. The report shall be submitted not later 
        than 3 months after the end of each fiscal year.
          [(7) Definitions.--For purposes of this subsection:
                  [(A) The term ``applicant'' means a State, 
                political subdivision thereof, Indian tribe, 
                any private nonprofit organization incorporated 
                within the State that has applied for a grant 
                under this subsection.
                  [(B) The term ``homeless individual'' has the 
                same meaning given the term under section 103 
                of the Stewart B. McKinney Homeless Assistance 
                Act.
                  [(C) The term ``migrant farmworker''--
                          [(i) means any person (and the family 
                        of such person) who (I) receives a 
                        substantial portion of his or her 
                        income from primary production of 
                        agricultural or aquacultural 
                        commodities, the handling of such 
                        commodities in the unprocessed stage, 
                        or the processing of such commodities, 
                        without respect to the source of 
                        employment, and (II) establishes 
                        residence in a location on a seasonal 
                        or temporary basis, in an attempt to 
                        receive an income as described in 
                        subclause (I); and
                          [(ii) includes any person (and the 
                        family of such person) who is retired 
                        or disabled, but who met the 
                        requirements of clause (i) at the time 
                        of retirement or becoming disabled.
                  [(D) The term ``operating costs'' means 
                expenses incurred by a recipient providing 
                housing under this subsection with respect to 
                the administration, maintenance, repair, and 
                security of such housing and utilities, fuel, 
                furnishings, and equipment for such housing.]

                              ----------                              


         THE CRANSTON-GONZALEZ NATIONAL AFFORDABLE HOUSING ACT

          * * * * * * *

 TITLE IV--HOMEOWNERSHIP AND OPPORTUNITY FOR PEOPLE EVERYWHERE PROGRAMS

          * * * * * * *

                 Subtitle D--HOPE for Youth: Youthbuild

          * * * * * * *

SEC. 455. YOUTHBUILD PROGRAM REQUIREMENTS.

  (a) * * *
  (b) Transitional Housing.--Each transitional housing project 
receiving assistance under this subtitle shall adhere to the 
requirements regarding service delivery, housing standards, and 
rent limitations applicable to comparable housing receiving 
assistance under subtitle C of title IV of the Stewart B. 
McKinney Homeless Assistance Act.
          * * * * * * *

SEC. 457. DEFINITIONS.

  For purposes of this subtitle:
          (1) * * *
          * * * * * * *
          (4) Homeless individual.--The term ``homeless 
        individual'' has the meaning given the term in section 
        [103] 102 of the Stewart B. McKinney Homeless 
        Assistance Act.
          * * * * * * *

                ADDITIONAL VIEWS OF CONGRESSMAN METCALF

    Studies by the National Conference of Mayors and the 
International Union of Gospel Missions have shown that veterans 
constitute approximately twenty to thirty-four percent of the 
homeless population. Yet, Stewart McKinney funding for veteran 
specific programs has not been adequate. According to the 
Congressional Research Service, HUD awarded a total of $713 
million in competitive grants to 1,100 McKinney projects for 
fiscal year 1996. Of the 1,100 funded projects, 48 projects, 
with grants totaling $25 million, were designed primarily for 
homeless veterans. In addition, The National Coalition for 
Homeless Veterans estimated that only one to three percent of 
HUD's Continuum of Care grants were awarded to veteran specific 
programs.
    While veterans have access to general homeless programs, 
these programs do not necessarily address the unique needs of 
veterans or lack adequate coordination with VA medical 
facilities, veteran service providers and local veteran 
organizations. Many homeless advocacy groups expect the 
Department of Veterans Affairs to meet the needs of homeless 
veterans. I agree that this agency must allocate greater 
resources to assist homeless veterans. At the same time, HUD 
must also recognize that it needs to do more for homeless 
veterans.
    As a hospital system, the VA was never designed to meet the 
comprehensive needs of homeless veterans. Trends in managed 
medical care and federal budget cuts, which are causing the VA 
to emphasize outpatient programs for substance abuse and mental 
health, are diminishing the Department of Veterans Affairs' 
capacity to meet the needs of homeless veterans as inpatient 
beds are reduced. Consequently, the need for transitional 
housing for veterans who are receiving benefits from VA 
outpatient and partial-hospitalization services are rapidly 
increasing.
    Today, many homeless service providers which target the 
special needs of veterans are unable to get a seat at the table 
in the local homeless planning boards, let alone receive 
federal grant monies administered by HUD. To rectify these 
problems, I introduced H.R. 1754, the Robert Stodola Homeless 
Veterans Assistance Act which would require at least twenty 
percent of HUD's Stewart McKinney funds be allocated for 
homeless veterans programs. This legislation received 
overwhelming support from many veteran organizations and 
veteran service providers.
    Working with both Chairman Lazio and Representative 
Kennedy, the Ranking Minority Member of the Subcommittee, we 
included provisions to help homeless veterans in H.R. 217. 
These provisions will achieve the following:
    Identify veterans who are homeless as a ``special needs'' 
population, which must be incorporated into the development of 
HUD comprehensive plans at all levels--federal, state and 
local. This should also be a part of HUD's reporting 
requirements to Congress under the Government Performance and 
Results Act (GPRA).
    Increase data collection on homeless veterans in both the 
pre-grant application process as well as in the post-grant 
reporting process. Additional data on homeless veterans will 
encourage all grantees to provide effective case management in 
a holistic, continuum of care approach to service, rather than 
simply warehousing the homeless.
    Provide veteran organizations and veteran service providers 
an opportunity to be represented in the local or state planning 
boards which will administer HUD block grants.
    The goal of the veteran provisions of this bill is to 
foster programs which target the special needs of veterans, and 
to encourage HUD and local entities to allocate a share of 
federal homeless dollars in meeting these needs, while not 
excluding veterans from mainstream homeless programs. These 
provisions were not simply added on as an afterthought, but 
were intended to rectify the lack of funding and representation 
of veteran advocacy groups at the federal, state and local 
levels.
    To help facilitate a better transition from the current 
McKinney Act program to the new block grant approach, I have 
listed some suggestions below.
    Technical assistance--HUD should develop and make available 
computerized programs which include (1) the community 
assessment planning, (2) the grantee's application, (3) the 
standardized homeless database management system as described 
in the legislation and (4) post-grant reporting. This would 
reduce the costs for grantees and standardizes information for 
the agency. These software programs should also list homeless 
veterans and other ``populations with special needs'' in the 
appropriate question fields so as to strongly encourage 
compliance with assessment and reporting procedures. HUD should 
consult with homeless providers and advocacy groups, including 
veteran advocacy groups, in the development of the software. 
This software package should assist the agency with compliance 
with the Government Performance Results Act (GPRA) and the 
Paperwork Reduction Act, and allow communities to focus on 
providing services to the homeless.
    Regional Conferences--The Secretary should organize 
regional conferences to assist those who are interested in 
assisting the homeless population and provide hands-on 
training.
    Definition for ``Veterans Specific'' Programs--To 
coordinate with VA regulations and policy for the Homeless 
Grant and Per Diem Program, HUD should define programs that are 
designed to meet specific needs of veterans as those serving at 
least 75 percent veterans and about 25 percent veterans' family 
members and others. This definition is aimed to encourage 
programs serving veterans to treat the family as a unit, in 
cases where the veteran has a dependent spouse and/or children.
    Replication of Successful Service Models--HUD should assess 
and share information on successful models of treating and 
providing service to the homeless. This may be done via HUD's 
Internet web site, as one example of carrying out this 
information clearinghouse objective. The assessment and 
information sharing should include veterans-specific programs, 
such as VA, state and community-based programs that may or may 
not receive HUD funding.
    Section 8 Transitional Housing Grants--HUD should review 
the dissemination of Section 8 vouchers to determine if enough 
are available to meet the transitional housing needs of 
homeless veterans and other population with special needs. 
Should there appear to be unmet needs, HUD is encouraged to 
devote more resources from the Section 8 program to address 
this need. Particular attention should be devoted to veterans 
receiving regular outpatient services and/or participating in 
partial-hospitalization programs.
    The primary objective of any homeless program is not only 
to get these individuals off the streets, but to bring them 
back into society as self-sufficient, productive citizens. 
Veterans who are homeless have perhaps a better possibility to 
achieve rehabilitation by virtue of the skills, pride and 
responsibility gained in their military service. The committee, 
through the language in this bill, hopes to recoup these lives 
in the most efficient manner, thereby saving federal resources 
along the way and compiling data to better plan for future 
needs and to duplicate successful treatment and rehabilitation 
programs.
    The veteran language of this bill is designed to give 
community-based providers the tools to make these federal 
homeless programs accessible and effective in addressing 
homelessness among veterans. Care of veterans with problems 
resulting from their military service is both a moral and legal 
obligation of the U.S. government. The provisions relating to 
homeless veterans in this act are meant to reinforce and 
redirect these services to accomplish the goal of fulfilling 
this national obligation better.

                                                      Jack Metcalf.

                      ADDITIONAL VIEW BY RON PAUL

    Despite the lofty ideals and good intentions of the 
supporters of this bill, the House Committee on Banking and 
Financial Services should oppose this legislation. No piece of 
paper issued by this body will solve the problem of 
homelessness in this country. No amount of hyperbole by 
politicians in Washington will put a roof over someone's head. 
This body should focus on the job it was assigned.
    When I was sworn in as a U.S. Congressman, I pledged to 
uphold the Constitution. This document detailed an agenda of 
limited government: Article One, Section 8 (the enumerated 
powers clause) and the ninth and tenth amendments (reserving to 
the states and people those powers not specifically granted to 
the federal government). A careful reading of the Constitution, 
Bill of Rights, and Declaration of Independence make the 
unconstitutional status of this vast expansion of federal 
powers easy to discern.
    H.R. 217, the Homeless Housing Programs Consolidation and 
Flexibility Act, continues not only the expansion of federal 
powers beyond the bounds set by the Constitution but increases 
its unconstitutional expenditure to one billion dollars, a jump 
of over 20% from the current appropriation of other people's 
money of $823 million.
    The answer to the problem of homelessness will not be found 
in Federal government programs. Indeed, previous expenditures 
to fund an increasing number of expanding programs has not 
solved the problem. Yet the problem remains--to listen to the 
supporters of this bill who call for ever-increasing funding 
for programs that have not worked, the problem is actually 
worsening.
    I applaud the efforts of Representative Jim Ryun who tried 
to limit the fiscal irresponsibility of the bill. The eloquent 
and reasoned defense by Representative Jesse Jackson of the 
ability of local officials to handle a problem more effectively 
than Federal bureaucrats deserves to be commended. We should 
rely on ourselves, families, churches and private charities 
first, turning to government only as a last resort--even then, 
the best option is for local control with local financing.

                                                          Ron Paul.

                            ADDITIONAL VIEWS

    The House Committee on Banking and Financial Services 
passed legislation reforming federal housing programs to assist 
the homeless. By providing these funds in block grants, states 
and communities will have more flexibility to help the 
homeless. We commend Chairmen Leach and Lazio for their efforts 
in bringing these important reforms before the Committee.
    The Committee reported H.R. 217 with a $1 billion 
authorization level each year for the next five fiscal years. 
This new authorization level is $177 million per year over the 
FY 1997 appropriation of $823 million, resulting in an $885 
million increase in spending over five years. Therefore, the 
vote in committee for H.R. 217 was a vote to increase spending 
by 20% over the next five years. As we approach our first 
balanced budget in 30 years, it is important to vote for such 
an increase. That is why we supported an amendment that was 
offered during the markup of H.R. 217 which would have 
increased spending to $850 million; a 3% increase over FY 1997.
    A 3% increase in spending will maintain current services 
and increase spending levels for the homeless. In fact, it 
represents an increase in spending that is greater than 
inflation and recognizes the nature of the reforms contained in 
H.R. 217. The proposed 3% increase will have a greater effect 
due to the block grant mechanism which will ensure that more 
money is spent on direct services than on administration and 
bureaucracy. The Committee, however, chose to reject this 
fiscally sound proposal.
    We understand that authorization levels are often ignored 
in the appropriations process. In fact, federal funds have been 
appropriated each year since 1992 for McKinney Act programs 
that had not received federal authorization. Increasing funds 
during the authorization process will most likely signal 
appropriators to appropriate even more federal funding. As the 
United States approaches an historic balanced budget, we should 
exhibit prudence as we consider increased funding for federal 
programs.
    The Committee is to be commended for its efforts to 
alleviate unnecessary bureaucracy and ensure that more dollars 
reach the homeless for whom they were intended. H.R. 217 is 
another important step toward a less intrusive federal 
government. It is unfortunate that the Committee did not also 
show the American people its commitment to balancing the 
federal budget.

                                   Jim Ryun.
                                   Ron Paul.
                                   Vince Snowbarger.

                            ADDITIONAL VIEWS

    While Democrats are in general agreement with Republicans 
as to the advisability of consolidating federal homeless 
programs and giving local homeless providers more flexibility, 
we disagree sharply over the issue of an adequate funding 
level.
    The Fiscal Year 1995 rescissions bill slashed funding for 
federal homeless programs by 25%, from an approved level of 
$1.12 billion to $823 million. In subsequent years, Congress 
has continued this inadequate funding level. We believe that 
the time has come for dramatic funding increases.
    In spite of sustained economic growth, the benefits of such 
growth have not accrued to those at the lower ends of the 
economic spectrum. The dearth of well paying jobs, combined 
with our declining investments in affordable housing, means and 
even the working poor may be unable to afford decent shelter in 
most urban areas. Time limits on welfare assistance, which will 
soon kick in, may well translate into an increase in 
homelessness among poor single mothers. And, reports from 
homeless shelters indicate increased demand for shelter and 
services--in spite of the strong economy.
    Testimony taken on H.R. 217 clearly indicates that homeless 
providers have developed increasingly sophisticated and 
effective continuum of care systems, to transition the homeless 
off the street, move them into permanent housing, and provide 
supportive services, to help people with problems lead a more 
productive life. Yet, flat federal funding, combined with an 
increase in need, has led to severe financial pressures on many 
delivery systems. If these systems are to succeed, they need 
adequate funding.
    We are pleased to see that the Committee print recognizes 
that the current funding level is inadequate. As a start, 
appropriators would do well this next year to at least increase 
funding from the current $823 million to the bill's level of $1 
billion.
    But, this level is still more than 10% lower than the level 
approved four years ago. Inflation, increased need, and cuts in 
federal support programs like welfare, food stamps, and SSI all 
combine to justify a substantial increase in homeless funding. 
Therefore, during markup of H.R. 217, committee Democrats 
offered an amendment to increase funding to $1.6 billion. 
Unfortunately, this amendment was defeated.
    During committee consideration of this bill, other 
amendments were offered to alter the bill's funding formula. 
The fierce debate over the allocation between urban areas and 
smaller communities, and between block grant funds and 
permanent housing funds vividly illustrates that members 
believe there are simply not sufficient federal resources to 
deal with the real problems of homelessness. The easiest way to 
resolve these fights is not to pit some communities against 
others, or to pit one program against another, but to provide 
sufficient funds for all needed programs and needy communities.
    Therefore, we advocate higher funding levels in H.R. 217. 
More importantly, we urge the appropriators next year to use 
some of the discretionary funding increases provided under the 
budget agreement to increase our financial commitment to 
fighting homelessness.

                                   Joe Kennedy.
                                   Barney Frank.

         ADDITIONAL VIEWS OF CONGRESSMAN JESSE L. JACKSON, JR.

    I am pleased that the House Banking Committee 
overwhelmingly approved H.R. 217, the Homeless Housing Programs 
Consolidation Act. This bill creates a more effective framework 
for empowering communities to address the plight of 
homelessness. Substantial improvements have been made to H.R. 
217 since its introduction. Specifically, I am pleased the 
Committee included two amendments that I offered which will 
enable localities to perform this critical role.
    The consolidation of the seven McKinney housing programs 
under Title IV of the Stewart B. McKinney Homeless Assistance 
Act is a matter which will have great implications for the 
Nation. It is incumbent upon us to protect the interests of 
homeless Americans who require supportive services as they 
transition to decent, clean, and safe permanent housing. The 
amendment I offered along with my colleagues Mr. Gutierrez, Mr. 
Sanders and Ms. Roybal-Allard replaced the 30% cap on 
supportive services outlined by the bill and replaced it with a 
35% cap. Above this level the ``super match'' is required.
    The primary premise of block granting funds is to provide 
jurisdictions with the flexibility they need in order to 
address their local priorities. This is why many believe that 
the supportive services cap should be completely eliminated.
    In the alternative, a standard cap of less than 35% would 
not allow many local governments, including the City of 
Chicago, to readily support individuals and families through 
the homeless continuum of care system toward self-sufficiency 
and independent living. Such critical services include: 
substance abuse treatment, treatment for mental illness, 
counseling and case management, health care, job training and 
placement, basic education and literacy training, advocacy for 
public benefits, domestic violence intervention, etc. We cannot 
downplay the importance of supportive services. These services 
keep homeless people off the streets and help them transition 
into stable situations.
    I am also pleased that the Committee accepted an amendment 
offered by Mr. Sanders and myself to which eliminates the cap 
on funds used for emergency shelters. The manager's amendment 
prohibited a grantee from using more than 15% of its funds on 
emergency shelter activities. I opposed any spending cap on 
such funds, so that our localities may have the flexibility to 
meet the sometimes unpredictable needs of their homeless 
populations. For example, extreme heat and cold emergencies 
require that emergency shelter services be available to all who 
need them. Many cities can accurately estimate such costs for 
any given year. However, other cities with more extreme 
climates, like Chicago, necessarily have greater difficulties 
with such estimates. Emergency shelter activities will always 
be an essential component of any homeless system. The existence 
of such a cap does not negate the existence
    In no way do these provisions eliminate homelessness, but 
they do make a way for local governments to provide the 
necessary services that translate into an outstretched arm and 
a helping hand. Enabling the homeless to attain lives of self-
sufficiency and independence is our goal. In light of these and 
additional provisions I supported the bill in committee and 
intend to vote in favor of H.R. 217 in its current form on the 
floor.

                                              Jesse L. Jackson, Jr.

                                
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