[House Report 110-906]
[From the U.S. Government Publishing Office]



110th Congress                                                   Report
                        HOUSE OF REPRESENTATIVES
 2d Session                                                     110-906

======================================================================



 
 HOMELESS EMERGENCY ASSISTANCE AND RAPID TRANSITION TO HOUSING ACT OF 
                                  2008

                                _______
                                

October 2, 2008.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

 Mr. Frank of Massachusetts, from the Committee on Financial Services, 
                        submitted the following

                              R E P O R T

                             together with

                            ADDITIONAL VIEWS

                        [To accompany H.R. 840]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Financial Services, to whom was referred 
the bill (H.R. 840) to amend the McKinney-Vento Homeless 
Assistance Act to consolidate the housing assistance programs 
for homeless persons under title IV of such Act, and for other 
purposes, having considered the same, report favorably thereon 
with an amendment and recommend that the bill as amended do 
pass.

                                CONTENTS

                                                                   Page
Amendment........................................................     2
Purpose and Summary..............................................    29
Background and Need for Legislation..............................    30
Hearings.........................................................    36
Committee Consideration..........................................    37
Committee Votes..................................................    37
Committee Oversight Findings.....................................    38
Performance Goals and Objectives.................................    38
New Budget Authority, Entitlement Authority, and Tax Expenditures    38
Committee Cost Estimate..........................................    38
Congressional Budget Office Estimate.............................    39
Federal Mandates Statement.......................................    41
Advisory Committee Statement.....................................    41
Constitutional Authority Statement...............................    41
Applicability to Legislative Branch..............................    41
Earmark Identification...........................................    41
Section-by-Section Analysis of the Legislation...................    41
Committee Correspondence.........................................    55
Changes in Existing Law Made by the Bill, as Reported............    58
Additional Views.................................................   124

                               Amendment

  The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``Homeless Emergency 
Assistance and Rapid Transition to Housing Act of 2008''.
  (b) Table of Contents.--The table of contents for this Act is as 
follows:

Sec. 1. Short title and table of contents.
Sec. 2. Findings and purposes.
Sec. 3. Definition of homelessness.
Sec. 4. United States Interagency Council on Homelessness.

             TITLE I--HOUSING ASSISTANCE GENERAL PROVISIONS

Sec. 101. Definitions.
Sec. 102. Community homeless assistance planning boards.
Sec. 103. General provisions.
Sec. 104. Protection of personally identifying information by victim 
service providers.
Sec. 105. Authorization of appropriations.

              TITLE II--EMERGENCY SOLUTIONS GRANTS PROGRAM

Sec. 201. Grant assistance.
Sec. 202. Eligible activities.
Sec. 203. Participation in Homeless Management Information System.
Sec. 204. Administrative provision.

                  TITLE III--CONTINUUM OF CARE PROGRAM

Sec. 301. Continuum of care.
Sec. 302. Eligible activities.
Sec. 303. High performing communities.
Sec. 304. Program requirements.
Sec. 305. Selection criteria, allocation amounts, and funding.
Sec. 306. Research.

          TITLE IV--RURAL HOUSING STABILITY ASSISTANCE PROGRAM

Sec. 401. Rural housing stability assistance.
Sec. 402. GAO study of homelessness and homeless assistance in rural 
areas.

               TITLE V--REPEALS AND CONFORMING AMENDMENTS

Sec. 501. Repeals.
Sec. 502. Conforming amendments.
Sec. 503. Effective date.
Sec. 504. Regulations.
Sec. 505. Amendment to table of contents.

SEC. 2. FINDINGS AND PURPOSES.

  (a) Findings.--The Congress finds that--
          (1) a lack of affordable housing and limited scale of housing 
        assistance programs are the primary causes of homelessness; and
          (2) homelessness affects all types of communities in the 
        United States, including rural, urban, and suburban areas.
  (b) Purposes.--The purposes of this Act are--
          (1) to consolidate the separate homeless assistance programs 
        carried out under title IV of the McKinney-Vento Homeless 
        Assistance Act (consisting of the supportive housing program 
        and related innovative programs, the safe havens program, the 
        section 8 assistance program for single-room occupancy 
        dwellings, and the shelter plus care program) into a single 
        program with specific eligible activities;
          (2) to codify in Federal law the continuum of care planning 
        process as a required and integral local function necessary to 
        generate the local strategies for ending homelessness; and
          (3) to establish a Federal goal of ensuring that individuals 
        and families who become homeless return to permanent housing 
        within 30 days.

SEC. 3. DEFINITION OF HOMELESSNESS.

  (a) In General.--Section 103 of the McKinney-Vento Homeless 
Assistance Act (42 U.S.C. 11302) is amended--
          (1) by redesignating subsections (b) and (c) as subsections 
        (c) and (d); and
          (2) by striking subsection (a) and inserting the following:
  ``(a) In General.--For purposes of this Act, the terms `homeless', 
`homeless individual', and `homeless person' means--
          ``(1) an individual or family who lacks a fixed, regular, and 
        adequate nighttime residence;
          ``(2) an individual or family with a primary nighttime 
        residence that is a public or private place not designed for or 
        ordinarily used as a regular sleeping accommodation for human 
        beings, including a car, park, abandoned building, bus or train 
        station, airport, or camping ground;
          ``(3) an individual or family living in a supervised publicly 
        or privately operated shelter designated to provide temporary 
        living arrangements (including hotels and motels paid for by 
        Federal, State, or local government programs for low-income 
        individuals or by charitable organizations, congregate 
        shelters, and transitional housing);
          ``(4) an individual who resided in a shelter or place not 
        meant for human habitation and who is exiting an institution 
        where he or she temporarily resided; and
          ``(5) an individual or family who--
                  ``(A) will imminently lose their housing, including 
                housing they own, rent, or live in without paying rent, 
                are sharing with others, and rooms in hotels or motels 
                not paid for by Federal, State, or local government 
                programs for low-income individuals or by charitable 
                organizations, as evidenced by--
                          ``(i) a court order resulting from an 
                        eviction action that notifies the individual or 
                        family that they must leave within 14 days;
                          ``(ii) the individual or family having a 
                        primary nighttime residence that is a room in a 
                        hotel or motel and where they lack the 
                        resources necessary to reside there for more 
                        than 14 days;
                          ``(iii) credible evidence indicating that the 
                        owner or renter of the housing will not allow 
                        the individual or family to stay for more than 
                        14 days, and any oral statement from an 
                        individual or family seeking homeless 
                        assistance that is found to be credible shall 
                        be considered credible evidence for purposes of 
                        this clause; or
                          ``(iv) such other factors that the Secretary 
                        determines will likely result in the individual 
                        or family becoming homeless, which may include 
                        recent history of homelessness or residential 
                        instability;
                  ``(B) has no subsequent residence identified; and
                  ``(C) lacks the resources or support networks needed 
                to obtain other permanent housing.
  ``(b) Domestic Violence and Other Dangerous or Life-Threatening 
Conditions.--Notwithstanding any other provision of this section, the 
Secretary shall consider to be homeless any individual or family who is 
fleeing, or is attempting to flee, domestic violence, dating violence, 
sexual assault, stalking, or other dangerous or life-threatening 
conditions in the individual's or family's current housing situation, 
including where the health and safety of children are jeopardized, and 
who have no other residence and lack the resources or support networks 
to obtain other permanent housing.''.
  (b) Regulations.--Not later than the expiration of the 6-month period 
beginning upon the date of the enactment of this Act, the Secretary of 
Housing and Urban Development shall issue regulations that provide 
sufficient guidance to recipients of funds under title IV of the 
McKinney-Vento Homeless Assistance Act to allow uniform and consistent 
implementation of the requirements of section 103 of such Act, as 
amended by subsection (a) of this section. This subsection shall take 
effect on the date of the enactment of this Act.
  (c) Clarification of Effect on Other Laws.--This section and the 
amendments made by this section to section 103 of the McKinney-Vento 
Homeless Assistance Act (42 U.S.C. 11302) may not be construed to 
affect, alter, limit, annul, or supersede any other provision of 
Federal law providing a definition of ``homeless'', ``homeless 
individual'', or ``homeless person'' for purposes other than such Act, 
except to the extent that such provision refers to such section 103 or 
the definition provided in such section 103.
  (d) GAO Study.--The Comptroller General of the United States shall 
conduct a study to examine and determine the following:
          (1) The best available point-in-time and longitudinal 
        estimates available of the number of individuals and families 
        nationwide who are homeless--
                  (A) as such term is defined in section 103(a) of the 
                McKinney-Vento Homeless Assistance Act (42 U.S.C. 
                11302(a)), as in effect immediately before the 
                enactment of this Act;
                  (B) as such term is defined in paragraphs (1) through 
                (4) of section 103(a) of such Act, as amended by this 
                section;
                  (C) as such term is defined in section 103(a)(5) of 
                such Act, as amended by this section (relating to 
                imminent loss of housing); and
                  (D) as such term is defined in other provisions of 
                Federal law.
          (2) The best estimates available of the overlap among the 
        populations included in the estimates under subparagraphs (A) 
        through (D) of paragraph (1).
          (3) The quality of the data underlying the each of the 
        estimates under subparagraphs (A) through (D) of paragraph (1).
          (4) The cost and feasibility of conducting high-quality 
        nationwide point-in-time counts, and longitudinal counts over a 
        duration of more than one year, of homeless individuals and 
        families under each of the definitions of homelessness referred 
        to in subparagraphs (A) through (D) of paragraph (1).
          (5) The best available longitudinal data, covering a minimum 
        of six months, on the residential movement of individuals and 
        families who are homeless under the definitions referred to in 
        paragraph (1)(D), but not under the definitions referred to in 
        paragraph (1)(A) or (1)(B), into circumstances that meet the 
        definition of homelessness under paragraph (1)(A) or (1)(B).
          (6) The best available data to enable prediction of whether 
        an individual or family that is homeless under the definitions 
        referred to in paragraph (1)(D), but not under the definition 
        referred to in paragraph (1)(A) or (1)(B), will within the next 
        12 months meet the definition of homelessness under paragraph 
        (1)(A) or (1)(B).
          (7) The best available research on the effectiveness of 
        activities eligible for funding under this title IV of the 
        McKinney-Vento Homeless Assistance Act at improving the housing 
        conditions of households described in paragraph (1)(D), but not 
        in subparagraphs (A) through (C) of paragraph (1).
          (8) The best available data on the childhood housing, child 
        welfare, and other experiences of adults who are currently 
        homeless, including individuals or heads of household who are 
        chronically homeless, to determine whether homelessness as a 
        child, as defined under subparagraphs (A) through (D) of 
        paragraph (1), or other traumatic childhood experiences, 
        including sexual abuse, predict an increased likelihood of 
        adult homelessness.
          (9) The extent to which the definitions of homeless set forth 
        in provisions of Federal law other than section 103 of the 
        McKinney-Vento Homeless Assistance Act fulfill the purposes of 
        the programs authorized by those provisions.
Not later than the expiration of the 12-month period beginning upon the 
date of the enactment of this Act, the Comptroller General shall submit 
to the Congress a report setting forth the findings and conclusions of 
the study required under this subsection. This subsection shall take 
effect on the date of the enactment of this Act.

SEC. 4. UNITED STATES INTERAGENCY COUNCIL ON HOMELESSNESS.

  (a) In General.--Title II of the McKinney-Vento Homeless Assistance 
Act (42 U.S.C. 11311 et seq.) is amended--
          (1) in section 201 (42 U.S.C. 11311), by inserting before the 
        period at the end the following ``whose mission shall be to 
        coordinate the Federal response to homelessness and to create a 
        national partnership at every level of government and with the 
        private sector to reduce and end homelessness in the nation 
        while maximizing the effectiveness of the Federal Government in 
        contributing to the end of homelessness'';
          (2) in section 202 (42 U.S.C. 11312)--
                  (A) in subsection (a)--
                          (i) by redesignating paragraph (16) as 
                        paragraph (22); and
                          (ii) by inserting after paragraph (15) the 
                        following:
          ``(16) The Commissioner of Social Security, or the designee 
        of the Commissioner.
          ``(17) The Attorney General of the United States, or the 
        designee of the Attorney General.
          ``(18) The Director of the Office of Management and Budget, 
        or the designee of the Director.
          ``(19) The Director of the Office of Faith-Based and 
        Community Initiatives, or the designee of the Director.
          ``(20) The Director of USA FreedomCorps, or the designee of 
        the Director.
          ``(21) The Commissioner of the Internal Revenue Service, or 
        the designee of the Commissioner.'';
                  (B) in subsection (c), by striking ``annually'' and 
                inserting ``four times each year, and the rotation of 
                the positions of Chairperson and Vice Chairperson 
                required under subsection (b) shall occur at the first 
                meeting of each year''; and
                  (C) by adding at the end the following:
  ``(e) Administration.--The Executive Director of the Council shall 
report to the Director of Domestic Policy Council.'';
          (3) in section 203(a) (42 U.S.C. 11313(a))--
                  (A) by redesignating paragraphs (1), (2), (3), (4), 
                (5), (6), and (7) as paragraphs (2), (3), (4), (5), 
                (11), (12), and (13), respectively;
                  (B) by inserting before paragraph (2), as so 
                redesignated by subparagraph (A), the following:
          ``(1) not later than 12 months after the date of the 
        enactment of the Homeless Emergency Assistance and Rapid 
        Transition to Housing Act of 2008, develop, make available for 
        public comment, and submit to the President and to Congress a 
        National Strategic Plan to End Homelessness, and shall update 
        such plan annually;'';
                  (C) in paragraph (5), as redesignated by subparagraph 
                (A), by striking ``at least 2, but in no case more than 
                5'' and inserting ``not less than 5, but in no case 
                more than 10'';
                  (D) by inserting after paragraph (5), as so 
                redesignated by subparagraph (A), the following:
          ``(6) encourage the creation of State Interagency Councils on 
        Homelessness and the formulation of jurisdictional 10-year 
        plans to end homelessness at state, city, and county levels;
          ``(7) annually obtain from Federal agencies their 
        identification of consumer-oriented entitlement and other 
        resources for which persons experiencing homelessness may be 
        eligible and the agencies' identification of improvements to 
        ensure access; develop mechanisms to ensure access by persons 
        experiencing homelessness to all Federal, State, and local 
        programs for which the persons are eligible, and to verify 
        collaboration among entities within a community that receive 
        Federal funding under programs targeted for persons 
        experiencing homelessness, and other programs for which persons 
        experiencing homelessness are eligible, including mainstream 
        programs identified by the Government Accountability Office in 
        the reports entitled `Homelessness: Coordination and Evaluation 
        of Programs Are Essential', issued February 26, 1999, and 
        `Homelessness: Barriers to Using Mainstream Programs', issued 
        July 6, 2000;
          ``(8) conduct research and evaluation related to its 
        functions as defined in this section;
          ``(9) develop joint federal agency and other initiatives to 
        fulfill the goals of the agency;
          ``(10) participate in Federal agency policy development, and 
        development, review, evaluation, and timing of all related 
        Federal funding competitions;'';
                  (E) in paragraph (12), as so redesignated by 
                subparagraph (A), by striking ``and'' at the end;
                  (F) in paragraph (13), as so redesignated by 
                subparagraph (A), by striking the period at the end and 
                inserting a semicolon;
                  (G) by adding at the end the following new 
                paragraphs:
          ``(14) develop constructive alternatives to criminalizing 
        homelessness and eliminate laws and policies that prohibit 
        sleeping, feeding, sitting, resting, or lying in public spaces 
        when there are no suitable alternatives, result in the 
        destruction of a homeless person's property without due 
        process, or are selectively enforced against homeless persons; 
        and
          ``(15) not later than the expiration of the 6-month period 
        beginning upon completion of the study required under section 
        3(d) of the Homeless Emergency Assistance and Rapid Transition 
        to Housing Act of 2008, convene a meeting of representatives of 
        all Federal agencies and committees of the House of 
        Representatives and the Senate having jurisdiction over any 
        Federal program to assist homeless individuals or families, 
        local and State governments, academic researchers who 
        specialize in homelessness, nonprofit housing and service 
        providers that receive funding under any Federal program to 
        assist homeless individuals or families, organizations 
        advocating on behalf of such nonprofit providers and homeless 
        persons receiving housing or services under any such Federal 
        program, and homeless persons receiving housing or services 
        under any such Federal program, at which meeting such 
        representatives shall discuss all issues relevant to whether 
        the definitions of `homeless' under paragraphs (1) through (4) 
        of section 103(a) of the McKinney-Vento Homeless Assistance 
        Act, as amended by section 3 of the Homeless Emergency 
        Assistance and Rapid Transition to Housing Act of 2008, should 
        be modified by the Congress, including whether there is a 
        compelling need for a uniform definition of homelessness under 
        Federal law, the extent to which the differences in such 
        definitions create barriers for individuals to accessing 
        services and to collaboration between agencies, and the 
        relative availability, and barriers to access by persons 
        defined as homeless, of mainstream programs identified by the 
        Government Accountability Office in the two reports identified 
        in paragraph (7) of this subsection; and shall submit 
        transcripts of such meeting, and any majority and dissenting 
        recommendations from such meetings, to each committee of the 
        House of Representatives and the Senate having jurisdiction 
        over any Federal program to assist homeless individuals or 
        families not later than the expiration of the 60-day period 
        beginning upon conclusion of such meeting.''.
          (4) in section 203(b) (42 U.S.C. 11313(b))--
                  (A) in paragraph (1)--
                          (i) by striking ``Federal'' and inserting 
                        ``national'';
                          (ii) by striking ``; and'' and inserting 
                        ``and pay for expenses of attendance at 
                        meetings which are concerned with the functions 
                        or activities for which the appropriation is 
                        made;'';
                  (B) in paragraph (2), by striking the period at the 
                end and inserting ``; and''; and
                  (C) by inserting after paragraph (2) the following:
          ``(3) establish a National Advisory Panel to advise and 
        assist the Council in achieving its mission by convening a 
        national group of experts in policy and practice from the 
        public and private sector, including consumers.'';
          (5) in section 203(c)(1) (42 U.S.C. 11313(c)(1))--
                  (A) in subparagraph (B), by striking ``; and'' and 
                inserting a semicolon;
                  (B) in subparagraph (C), by striking the period at 
                the end and inserting ``; and'';
                  (C) by adding at the end the following:
                  ``(D) efforts by such agency to prevent homelessness 
                through agency initiatives in targeted or mainstream 
                programs.'';
          (6) in section 204, by striking subsection (a) and inserting 
        the following:
  ``(a) Director.--The President shall appoint an Executive Director, 
with the advice and consent of the Senate, who shall serve at the 
pleasure of the President, and who shall be compensated at a rate not 
to exceed the maximum level for the Senior Executive Service.''.
          (7) in section 205(d) (42 U.S.C. 11315(d)), by striking 
        ``property.'' and inserting ``property, both real and personal, 
        public and private, without fiscal year limitation, for the 
        purpose of aiding or facilitating the work of the Council.''; 
        and
          (8) by striking section 208 (42 U.S.C. 11318) and inserting 
        the following:

``SEC. 208. AUTHORIZATION OF APPROPRIATIONS.

  ``There are authorized to be appropriated to carry out this title 
$3,000,000 for fiscal year 2009 and such sums as may be necessary for 
fiscal years 2010, 2011, 2012, and 2013. Any amounts appropriated to 
carry out this title shall remain available until expended.''.
  (b) Effective Date.--The amendments made by subsection (a) shall take 
effect on, and shall apply beginning on, the date of the enactment of 
this Act .

             TITLE I--HOUSING ASSISTANCE GENERAL PROVISIONS

SEC. 101. DEFINITIONS.

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

                  ``Subtitle A--General Provisions'';

          (2) by redesignating sections 401 and 402 (42 U.S.C. 11361, 
        11362) as sections 403 and 406, respectively; and
          (3) by inserting before section 403 (as so redesignated by 
        paragraph (2) of this section) the following new section:

``SEC. 401. DEFINITIONS.

  ``For purposes of this title:
          ``(1) At risk of homelessness.--The term `at risk of 
        homelessness' means, with respect to an individual or family, 
        that the individual or family--
                  ``(A) has income below 30 percent of median income 
                for the geographic area;
                  ``(B) has insufficient resources immediately 
                available to attain housing stability; and
                  ``(C)(i) has moved frequently because of economic 
                reasons;
                  ``(ii) is living in the home of another because of 
                economic hardship;
                  ``(iii) has been notified that their right to occupy 
                their current housing or living situation will be 
                terminated;
                  ``(iv) lives in a hotel or motel;
                  ``(v) lives in severely overcrowded housing;
                  ``(vi) is exiting an institution; or
                  ``(vii) otherwise lives in housing that has 
                characteristics associated with instability and an 
                increased risk of homelessness.
                Such term includes all families with children and youth 
                defined as homeless under other Federal statutes.
          ``(2) Chronically homeless.--
                  ``(A) In general.--The term `chronically homeless' 
                means, with respect to an individual or family, that 
                the individual or family--
                          ``(i) is homeless and lives or resides in a 
                        place not meant for human habitation, a safe 
                        haven, or in an emergency shelter;
                          ``(ii) has been homeless and living or 
                        residing in a place not meant for human 
                        habitation, a safe haven, or in an emergency 
                        shelter continuously for at least 1 year or on 
                        at least 4 separate occasions in the last 3 
                        years; and
                          ``(iii) has an adult head of household (or a 
                        minor head of household if no adult is present 
                        in the household) with a diagnosable substance 
                        use disorder, serious mental illness, 
                        developmental disability (as defined in section 
                        102 of the Developmental Disabilities 
                        Assistance and Bill of Rights Act of 2000 (42 
                        U.S.C. 15002)), post traumatic stress disorder, 
                        cognitive impairments resulting from a brain 
                        injury, or chronic physical illness or 
                        disability, including the co-occurrence of 2 or 
                        more of those conditions.
                  ``(B) Rule of construction.--A person who currently 
                lives or resides in an institutional care facility, 
                including a jail, substance abuse or mental health 
                treatment facility, hospital or other similar facility, 
                and has resided there for fewer than 90 days shall be 
                considered chronically homeless if such person met all 
                of the requirements described in subparagraph (A) prior 
                to entering that facility.
          ``(3) Collaborative applicant.--The term `collaborative 
        applicant' means an entity that--
                  ``(A) carries out the duties specified in section 
                402;
                  ``(B) serves as the applicant for project sponsors 
                who jointly submit a single application for a grant 
                under subtitle C in accordance with a collaborative 
                process; and
                  ``(C) if the entity is a legal entity and is awarded 
                such grant, receives such grant directly from the 
                Secretary.
          ``(4) Collaborative application.--The term `collaborative 
        application' means an application for a grant under subtitle C 
        that--
                  ``(A) satisfies section 422; and
                  ``(B) is submitted to the Secretary by a 
                collaborative applicant.
          ``(5) Consolidated plan.--The term `Consolidated Plan' means 
        a comprehensive housing affordability strategy and community 
        development plan required in part 91 of title 24, Code of 
        Federal Regulations.
          ``(6) Eligible entity.--The term `eligible entity' means, 
        with respect to a subtitle, a public entity, a private entity, 
        or an entity that is a combination of public and private 
        entities, that is eligible to directly receive grant amounts 
        under such subtitle.
          ``(7) Families with children and youth defined as homeless 
        under other federal statutes.--The term `families with children 
        and youth defined as homeless under other Federal statutes' 
        means any children or youth that are defined as `homeless' 
        under any Federal statute other than this subtitle, but are not 
        defined as homeless under section 103, and shall also include 
        the parent, parents, or guardian of such children or youth 
        under subtitle B of title VII this Act (42 U.S.C. 11431 et 
        seq.).
          ``(8) Geographic area.--The term `geographic area' means a 
        State, metropolitan city, urban county, town, village, or other 
        nonentitlement area, or a combination or consortia of such, in 
        the United States, as described in section 106 of the Housing 
        and Community Development Act of 1974 (42 U.S.C. 5306).
          ``(9) Homeless individual with a disability.--
                  ``(A) In general.--The term `homeless individual with 
                a disability' means an individual who is homeless, as 
                defined in section 103, and has a disability that--
                          ``(i)(I) is expected to be long-continuing or 
                        of indefinite duration;
                          ``(II) substantially impedes the individual's 
                        ability to live independently;
                          ``(III) could be improved by the provision of 
                        more suitable housing conditions; and
                          ``(IV) is a physical, mental, or emotional 
                        impairment, including an impairment caused by 
                        alcohol or drug abuse, post traumatic stress 
                        disorder, or brain injury;
                          ``(ii) is a developmental disability, as 
                        defined in section 102 of the Developmental 
                        Disabilities Assistance and Bill of Rights Act 
                        of 2000 (42 U.S.C. 15002); or
                          ``(iii) is the disease of acquired 
                        immunodeficiency syndrome or any condition 
                        arising from the etiologic agency for acquired 
                        immunodeficiency syndrome.
                  ``(B) Rule.--Nothing in clause (iii) of subparagraph 
                (A) shall be construed to limit eligibility under 
                clause (i) or (ii) of subparagraph (A).
          ``(10) Legal entity.--The term `legal entity' means--
                  ``(A) an entity described in section 501(c)(3) of the 
                Internal Revenue Code of 1986 (26 U.S.C. 501(c)(3)) and 
                exempt from tax under section 501(a) of such Code;
                  ``(B) an instrumentality of State or local 
                government; or
                  ``(C) a consortium of instrumentalities of State or 
                local governments that has constituted itself as an 
                entity.
          ``(11) Metropolitan city; urban county; nonentitlement 
        area.--The terms `metropolitan city', `urban county', and 
        `nonentitlement area' have the meanings given such terms in 
        section 102(a) of the Housing and Community Development Act of 
        1974 (42 U.S.C. 5302(a)).
          ``(12) New.--The term `new' means, with respect to housing, 
        that no assistance has been provided under this title for the 
        housing.
          ``(13) Operating costs.--The term `operating costs' means 
        expenses incurred by a project sponsor operating transitional 
        housing or permanent housing under this title with respect to--
                  ``(A) the administration, maintenance, repair, and 
                security of such housing;
                  ``(B) utilities, fuel, furnishings, and equipment for 
                such housing; or
                  ``(C) coordination of services as needed to ensure 
                long-term housing stability.
          ``(14) Outpatient health services.--The term `outpatient 
        health services' means outpatient health care services, mental 
        health services, and outpatient substance abuse services.
          ``(15) Permanent housing.--The term `permanent housing' means 
        community-based housing without a designated length of stay, 
        and includes both permanent supportive housing and permanent 
        housing without supportive services.
          ``(16) Personally identifying information.--The term 
        `personally identifying information' means individually 
        identifying information for or about an individual, including 
        information likely to disclose the location of a victim of 
        domestic violence, dating violence, sexual assault, or 
        stalking, including--
                  ``(A) a first and last name;
                  ``(B) a home or other physical address;
                  ``(C) contact information (including a postal, e-mail 
                or Internet protocol address, or telephone or facsimile 
                number);
                  ``(D) a social security number; and
                  ``(E) any other information, including date of birth, 
                racial or ethnic background, or religious affiliation, 
                that, in combination with any other non-personally 
                identifying information, would serve to identify any 
                individual.
          ``(17) Private nonprofit organization.--The term `private 
        nonprofit organization' means an organization--
                  ``(A) no part of the net earnings of which inures to 
                the benefit of any member, founder, contributor, or 
                individual;
                  ``(B) that has a voluntary board;
                  ``(C) that has an accounting system, or has 
                designated a fiscal agent in accordance with 
                requirements established by the Secretary; and
                  ``(D) that practices nondiscrimination in the 
                provision of assistance.
          ``(18) Project.--The term `project' means, with respect to 
        activities carried out under subtitle C, eligible activities 
        described in section 423(a), undertaken pursuant to a specific 
        endeavor, such as serving a particular population or providing 
        a particular resource.
          ``(19) Project-based.--The term `project-based' means, with 
        respect to rental assistance, that the assistance is provided 
        pursuant to a contract that--
                  ``(A) is between--
                          ``(i) the recipient or a project sponsor; and
                          ``(ii) an owner of a structure that exists as 
                        of the date the contract is entered into; and
                  ``(B) provides that rental assistance payments shall 
                be made to the owner and that the units in the 
                structure shall be occupied by eligible persons for not 
                less than the term of the contract.
          ``(20) Project sponsor.--The term `project sponsor' means, 
        with respect to proposed eligible activities, the organization 
        directly responsible for carrying out the proposed eligible 
        activities.
          ``(21) Recipient.--Except as used in subtitle B, the term 
        `recipient' means an eligible entity who--
                  ``(A) submits an application for a grant under 
                section 422 that is approved by the Secretary;
                  ``(B) receives the grant directly from the Secretary 
                to support approved projects described in the 
                application; and
                  ``(C)(i) serves as a project sponsor for the 
                projects; or
                  ``(ii) awards the funds to project sponsors to carry 
                out the projects.
          ``(22) Secretary.--The term `Secretary' means the Secretary 
        of Housing and Urban Development.
          ``(23) Serious mental illness.--The term `serious mental 
        illness' means a severe and persistent mental illness or 
        emotional impairment that seriously limits a person's ability 
        to live independently.
          ``(24) Solo applicant.--The term `solo applicant' means an 
        entity that is an eligible entity, directly submits an 
        application for a grant under subtitle C to the Secretary, and, 
        if awarded such grant, receives such grant directly from the 
        Secretary.
          ``(25) Sponsor-based.--The term `sponsor-based' means, with 
        respect to rental assistance, that the assistance is provided 
        pursuant to a contract that--
                  ``(A) is between--
                          ``(i) the recipient or a project sponsor; and
                          ``(ii) an independent entity that--
                                  ``(I) is a private organization; and
                                  ``(II) owns or leases dwelling units; 
                                and
                  ``(B) provides that rental assistance payments shall 
                be made to the independent entity and that eligible 
                persons shall occupy such assisted units.
          ``(26) State.--Except as used in subtitle B, the term `State' 
        means each of the several States, the District of Columbia, the 
        Commonwealth of Puerto Rico, the United States Virgin Islands, 
        Guam, American Samoa, the Commonwealth of the Northern Mariana 
        Islands, the Trust Territory of the Pacific Islands, and any 
        other territory or possession of the United States.
          ``(27) Supportive services.--The term `supportive services' 
        means services that address the special needs of people served 
        by a project, including--
                  ``(A) the establishment and operation of a child care 
                services program for families experiencing 
                homelessness;
                  ``(B) the establishment and operation of an 
                employment assistance program, including providing job 
                training;
                  ``(C) the provision of outpatient health services, 
                food, and case management;
                  ``(D) the provision of assistance in obtaining 
                permanent housing, employment counseling, and 
                nutritional counseling;
                  ``(E) the provision of outreach services, advocacy, 
                life skills training, and housing search and counseling 
                services;
                  ``(F) the provision of mental health services, trauma 
                counseling, and victim services;
                  ``(G) the provision of assistance in obtaining other 
                Federal, State, and local assistance available for 
                residents of supportive housing (including mental 
                health benefits, employment counseling, and medical 
                assistance, but not including major medical equipment);
                  ``(H) the provision of legal services for purposes 
                including requesting reconsiderations and appeals of 
                veterans and public benefit claim denials and resolving 
                outstanding warrants that interfere with an 
                individual's ability to obtain and retain housing;
                  ``(I) the provision of--
                          ``(i) transportation services that facilitate 
                        an individual's ability to obtain and maintain 
                        employment; and
                          ``(ii) health care; and
                  ``(J) other supportive services necessary to obtain 
                and maintain housing.
          ``(28) Tenant-based.--The term `tenant-based' means, with 
        respect to rental assistance, assistance that--
                  ``(A) allows an eligible person to select a housing 
                unit in which such person will live using rental 
                assistance provided under subtitle C, except that if 
                necessary to assure that the provision of supportive 
                services to a person participating in a program is 
                feasible, a recipient or project sponsor may require 
                that the person live--
                          ``(i) in a particular structure or unit for 
                        not more than the first year of the 
                        participation; or
                          ``(ii) within a particular geographic area 
                        for the full period of the participation, or 
                        the period remaining after the period referred 
                        to in subparagraph (A); and
                  ``(B) provides that a person may receive such 
                assistance and move to another structure, unit, or 
                geographic area if the person has complied with all 
                other obligations of the program and has moved out of 
                the assisted dwelling unit in order to protect the 
                health or safety of an individual who is or has been 
                the victim of domestic violence, dating violence, 
                sexual assault, or stalking, and who reasonably 
                believed he or she was imminently threatened by harm 
                from further violence if he or she remained in the 
                assisted dwelling unit.
          ``(29) Transitional housing.--The term `transitional housing' 
        means housing the purpose of which is to facilitate the 
        movement of individuals and families experiencing homelessness 
        to permanent housing within 24 months or such longer period as 
        the Secretary determines necessary.
          ``(30) Unified funding agency.--The term `unified funding 
        agency' means a collaborative applicant that performs the 
        duties described in section 402(g).
          ``(31) Underserved populations.--The term `underserved 
        populations' includes populations underserved because of 
        geographic location, underserved racial and ethnic populations, 
        populations underserved because of special needs (such as 
        language barriers, disabilities, alienage status, or age), and 
        any other population determined to be underserved by the 
        Secretary, as appropriate.
          ``(32) Victim service provider.--The term `victim service 
        provider' means a private nonprofit organization whose primary 
        mission is to provide services to victims of domestic violence, 
        dating violence, sexual assault, or stalking. Such term 
        includes rape crisis centers, battered women's shelters, 
        domestic violence transitional housing programs, and other 
        programs.
          ``(33) Victim services.--The term `victim services' means 
        services that assist domestic violence, dating violence, sexual 
        assault, or stalking victims, including services offered by 
        rape crisis centers and domestic violence shelters, and other 
        organizations, with a documented history of effective work 
        concerning domestic violence, dating violence, sexual assault, 
        or stalking.''.

SEC. 102. COMMUNITY HOMELESS ASSISTANCE PLANNING BOARDS.

  Subtitle A of title IV of the McKinney-Vento Homeless Assistance Act 
(42 U.S.C. 11361 et seq.) is amended by inserting after section 401 (as 
added by section 101(3) of this Act) the following new section:

``SEC. 402. COLLABORATIVE APPLICANTS.

  ``(a) Establishment and Designation.--A collaborative applicant shall 
be established for a geographic area by the relevant parties in that 
geographic area to--
          ``(1) submit an application for amounts under this subtitle; 
        and
          ``(2) perform the duties specified in subsection (f) and, if 
        applicable, subsection (g).
  ``(b) No Requirement to Be a Legal Entity.--An entity may be 
established to serve as a collaborative applicant under this section 
without being a legal entity.
  ``(c) Remedial Action.--If the Secretary finds that a collaborative 
applicant for a geographic area does not meet the requirements of this 
section, or if there is no collaborative applicant for a geographic 
area, the Secretary may take remedial action to ensure fair 
distribution of grant amounts under subtitle C to eligible entities 
within that area. Such measures may include designating another body as 
a collaborative applicant, or permitting other eligible entities to 
apply directly for grants.
  ``(d) Construction.--Nothing in this section shall be construed to 
displace conflict of interest or government fair practices laws, or 
their equivalent, that govern applicants for grant amounts under 
subtitles B and C.
  ``(e) Appointment of Agent.--
          ``(1) In general.--Subject to paragraph (2), a collaborative 
        applicant may designate an agent to--
                  ``(A) apply for a grant under section 422(c);
                  ``(B) receive and distribute grant funds awarded 
                under subtitle C; and
                  ``(C) perform other administrative duties.
          ``(2) Retention of duties.--Any collaborative applicant that 
        designates an agent pursuant to paragraph (1) shall regardless 
        of such designation retain all of its duties and 
        responsibilities under this title.
  ``(f) Duties.--A collaborative applicant shall--
          ``(1) design a collaborative process for the development of 
        an application under subtitle C, and for evaluating the 
        outcomes of projects for which funds are awarded under subtitle 
        B, in such a manner as to provide information necessary for the 
        Secretary--
                  ``(A) to determine compliance with--
                          ``(i) the program requirements under section 
                        426; and
                          ``(ii) the selection criteria described under 
                        section 427; and
                  ``(B) to establish priorities for funding projects in 
                the geographic area involved;
          ``(2) participate in the Consolidated Plan for the geographic 
        area served by the collaborative applicant;
          ``(3) ensure operation of, and consistent participation by, 
        project sponsors in a community-wide homeless management 
        information system (in this subsection referred to as `HMIS') 
        that--
                  ``(A) collects unduplicated counts of individuals and 
                families experiencing homelessness;
                  ``(B) analyzes patterns of use of assistance provided 
                under subtitles B and C for the geographic area 
                involved;
                  ``(C) provides information to project sponsors and 
                applicants for needs analyses and funding priorities; 
                and
                  ``(D) is developed in accordance with standards 
                established by the Secretary, including standards that 
                provide for--
                          ``(i) encryption of data collected for 
                        purposes of HMIS;
                          ``(ii) documentation, including keeping an 
                        accurate accounting, proper usage, and 
                        disclosure, of HMIS data;
                          ``(iii) access to HMIS data by staff, 
                        contractors, law enforcement, and academic 
                        researchers;
                          ``(iv) rights of persons receiving services 
                        under this title;
                          ``(v) criminal and civil penalties for 
                        unlawful disclosure of data; and
                          ``(vi) such other standards as may be 
                        determined necessary by the Secretary; and
          ``(4) certify as to whether or not the applicable States and 
        units of general local government are criminalizing 
        homelessness through the enforcement of any laws or policies 
        that prohibit sleeping, feeding, sitting, resting, or lying in 
        public spaces when there are no suitable alternatives, or that 
        result in the destruction of a homeless person's property 
        without due process, or through the selective enforcement of 
        laws or policies against homeless persons.
  ``(g) Unified Funding.--
          ``(1) In general.--In addition to the duties described in 
        subsection (f), a collaborative applicant shall receive from 
        the Secretary and distribute to other project sponsors in the 
        applicable geographic area funds for projects to be carried out 
        by such other project sponsors, if--
                  ``(A) the collaborative applicant--
                          ``(i) applies to undertake such collection 
                        and distribution responsibilities in an 
                        application submitted under this subtitle; and
                          ``(ii) is selected to perform such 
                        responsibilities by the Secretary; or
                  ``(B) the Secretary designates the collaborative 
                applicant as the unified funding agency in the 
                geographic area, after--
                          ``(i) a finding by the Secretary that the 
                        applicant--
                                  ``(I) has the capacity to perform 
                                such responsibilities; and
                                  ``(II) would serve the purposes of 
                                this Act as they apply to the 
                                geographic area; and
                          ``(ii) the Secretary provides the 
                        collaborative applicant with the technical 
                        assistance necessary to perform such 
                        responsibilities as such assistance is agreed 
                        to by the collaborative applicant.
          ``(2) Required actions by a unified funding agency.--A 
        collaborative applicant that is either selected or designated 
        as a unified funding agency for a geographic area under 
        paragraph (1) shall--
                  ``(A) require each project sponsor who is funded by a 
                grant received under subtitle C to establish such 
                fiscal control and fund accounting procedures as may be 
                necessary to assure the proper disbursal of, and 
                accounting for, Federal funds awarded to the project 
                sponsor under subtitle C in order to ensure that all 
                financial transactions carried out under subtitle C are 
                conducted, and records maintained, in accordance with 
                generally accepted accounting principles; and
                  ``(B) arrange for an annual survey, audit, or 
                evaluation of the financial records of each project 
                carried out by a project sponsor funded by a grant 
                received under subtitle C.
  ``(h) Conflict of Interest.--No board member of a collaborative 
applicant may participate in decisions of the collaborative applicant 
concerning the award of a grant, or provision of other financial 
benefits, to such member or the organization that such member 
represents.''.

SEC. 103. GENERAL PROVISIONS.

  Subtitle A of title IV of the McKinney-Vento Homeless Assistance Act 
(42 U.S.C. 11361 et seq.) is amended by inserting after section 403 (as 
so redesignated by section 101(2) of this Act) the following new 
sections:

``SEC. 404. PREVENTING INVOLUNTARY FAMILY SEPARATION.

  ``(a) In General.--After the expiration of the 2-year period that 
begins upon the date of the enactment of the Homeless Emergency 
Assistance and Rapid Transition to Housing Act of 2008, and except as 
provided in subsection (b), any project sponsor receiving funds under 
this title to provide emergency shelter, transitional housing, or 
permanent housing to families with children under age 18 shall not deny 
admission to any family based on the age of any child under age 18.
  ``(b) Exception.--Notwithstanding the requirement under subsection 
(a), project sponsors of transitional housing receiving funds under 
this title may target transitional housing resources to families with 
children of a specific age only if the project sponsor--
          ``(1) operates a transitional housing program that has a 
        primary purpose of implementing an evidence-based practice that 
        requires that housing units be targeted to families with 
        children in a specific age group; and
          ``(2) provides such assurances, as the Secretary shall 
        require, that an equivalent appropriate alternative living 
        arrangement for the whole family or household unit has been 
        secured.

``SEC. 405. TECHNICAL ASSISTANCE.

  ``(a) In General.--The Secretary shall make available technical 
assistance to private nonprofit organizations and other nongovernmental 
entities, States, metropolitan cities, urban counties, and counties 
that are not urban counties, to implement effective planning processes 
for preventing and ending homelessness, to improve their capacity to 
prepare collaborative applications, to prevent the separation of 
families in emergency shelter or other housing programs, and to adopt 
and provide best practices in housing and services for persons 
experiencing homeless.
  ``(b) Reservation.--The Secretary shall reserve not more than 1 
percent of the funds made available for any fiscal year for carrying 
out subtitles B and C, to provide technical assistance under subsection 
(a).''.

SEC. 104. PROTECTION OF PERSONALLY IDENTIFYING INFORMATION BY VICTIM 
                    SERVICE PROVIDERS.

  Subtitle A of title IV of the McKinney-Vento Homeless Assistance Act 
(42 U.S.C. 11361 et seq.), as amended by the preceding provisions of 
this title, is further amended by adding at the end the following new 
section:

``SEC. 407. PROTECTION OF PERSONALLY IDENTIFYING INFORMATION BY VICTIM 
                    SERVICE PROVIDERS.

  ``In the course of awarding grants or implementing programs under 
this title, the Secretary shall instruct any victim service provider 
that is a recipient or subgrantee not to disclose for purposes of the 
Homeless Management Information System any personally identifying 
information about any client. The Secretary may, after public notice 
and comment, require or ask such recipients and subgrantees to disclose 
for purposes of the Homeless Management Information System non-
personally identifying information that has been de-identified, 
encrypted, or otherwise encoded. Nothing in this section shall be 
construed to supersede any provision of any Federal, State, or local 
law that provides greater protection than this subsection for victims 
of domestic violence, dating violence, sexual assault, or stalking.''.

SEC. 105. AUTHORIZATION OF APPROPRIATIONS.

  Subtitle A of title IV of the McKinney-Vento Homeless Assistance Act 
(42 U.S.C. 11361 et seq.), as amended by the preceding provisions of 
this title, is further amended by adding at the end the following new 
section:

``SEC. 408. AUTHORIZATION OF APPROPRIATIONS.

  ``(a) In General.--There are authorized to be appropriated to carry 
out this title $2,200,000,000 for fiscal year 2010 and such sums as may 
be necessary for each of fiscal years 2011, 2012, and 2013.
  ``(b) Permanent Housing Renewals.--Of the amounts made available 
pursuant to subsection (a), $595,000,000 for fiscal year 2010, 
$670,000,000 for fiscal year 2011, $745,000,000 for fiscal year 2012, 
and $825,000,000 for fiscal year 2013, shall be for renewal for one 
year of expiring contracts for leasing, rental assistance, and 
operating costs for permanent housing.''.

              TITLE II--EMERGENCY SOLUTIONS GRANTS PROGRAM

SEC. 201. GRANT ASSISTANCE.

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

          ``Subtitle B--Emergency Solutions Grants Program'';

          (2) by striking section 417 (42 U.S.C. 11377);
          (3) by redesignating sections 413 through 416 (42 U.S.C. 
        11373-6) as sections 414 through 417, respectively; and
          (4) by striking section 412 (42 U.S.C. 11372) and inserting 
        the following:

``SEC. 412. GRANT ASSISTANCE.

  ``The Secretary shall make grants to States and local governments 
(and to private nonprofit organizations providing assistance to persons 
experiencing homelessness or at risk of homelessness, in the case of 
grants made with reallocated amounts) for the purpose of carrying out 
activities described in section 415.

``SEC. 413. AMOUNT AND ALLOCATION OF ASSISTANCE.

  ``(a) In General.--Of the amount made available to carry out this 
title for a fiscal year, not including the amounts made available under 
section 408(b), the Secretary shall allocate nationally 20 percent of 
such amount for activities described in section 415. The Secretary 
shall be required to certify that such allocation will not adversely 
affect the renewal of existing projects under this subtitle and 
subtitle C for those individuals or families who are homeless.
  ``(b) Allocation.--An entity that receives a grant under section 412, 
and serves an area that includes 1 or more geographic areas (or 
portions of such areas) served by collaborative applicants that submit 
applications under subtitle C, shall allocate the funds made available 
through the grant to carry out activities described in section 415, in 
consultation with the collaborative applicants.'';
          (5) in section 414(b) (42 U.S.C. 11373(b)), as so 
        redesignated by paragraph (3) of this section, by striking 
        ``amounts appropriated'' and all that follows through ``for 
        any'' and inserting ``amounts appropriated under section 408 
        and made available to carry out this subtitle for any''; and
          (6) in section 414, as so redesignated by paragraph (3) of 
        this section, by adding at the end the following new 
        subsection:
  ``(f) Reduction of Funds for Criminalizing Homelessness.--Of the 
amount made available to carry out this title for a fiscal year, the 
Secretary shall reduce the amount of administrative funds available by 
half to any jurisdiction for which a collaborative applicant has 
submitted a certification under section 402(f)(4) that the unit of 
local government has criminalized homelessness. The funds shall instead 
be made available to the collaborative applicant for the jurisdiction. 
If no collaborative applicant exists for such jurisdiction, the funds 
shall be made available to the State to carry out this title.''.

SEC. 202. ELIGIBLE ACTIVITIES.

  The McKinney-Vento Homeless Assistance Act is amended by striking 
section 415 (42 U.S.C. 11374), as so redesignated by section 201(3) of 
this Act, and inserting the following new section:

``SEC. 415. ELIGIBLE ACTIVITIES.

  ``(a) In General.--Assistance provided under section 412 may be used 
for the following activities:
          ``(1) The renovation, major rehabilitation, or conversion of 
        buildings to be used as emergency shelters.
          ``(2) The provision of essential services related to 
        emergency shelter or street outreach, including services 
        concerned with employment, health, education, family support 
        services for homeless youth, substance abuse services, victim 
        services, or mental health services, if--
                  ``(A) such essential services have not been provided 
                by the local government during any part of the 
                immediately preceding 12-month period or the Secretary 
                determines that the local government is in a severe 
                financial deficit; or
                  ``(B) the use of assistance under this subtitle would 
                complement the provision of those essential services.
          ``(3) Maintenance, operation, insurance, provision of 
        utilities, and provision of furnishings related to emergency 
        shelter.
          ``(4) Provision of rental assistance to provide short-term or 
        medium-term housing to homeless individuals or families or 
        individuals or families at risk of homelessness. Such rental 
        assistance may include tenant-based or project-based rental 
        assistance.
          ``(5) Housing relocation or stabilization services for 
        homeless individuals or families or individuals or families at 
        risk of homelessness, including housing search, mediation or 
        outreach to property owners, legal services, credit repair, 
        providing security or utility deposits, utility payments, 
        rental assistance for a final month at a location, assistance 
        with moving costs, or other activities that are effective at--
                  ``(A) stabilizing individuals and families in their 
                current housing; or
                  ``(B) quickly moving such individuals and families to 
                other permanent housing.
  ``(b) Maximum Allocation for Emergency Shelter Activities.--A grantee 
of assistance provided under section 412 for any fiscal year may not 
use an amount of such assistance for activities described in paragraphs 
(1) through (3) of subsection (a) that exceeds the greater of--
          ``(1) 50 percent of the aggregate amount of such assistance 
        provided for the grantee for such fiscal year; or
          ``(2) the amount expended by such grantee for such activities 
        during fiscal year most recently completed before the effective 
        date under section 503 of the Homeless Emergency Assistance and 
        Rapid Transition to Housing Act of 2008.''.

SEC. 203. PARTICIPATION IN HOMELESS MANAGEMENT INFORMATION SYSTEM.

  Section 416 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
11375), as so redesignated by section 201(3) of this Act, is amended by 
adding at the end the following new subsection:
  ``(f) Participation in HMIS.--The Secretary shall ensure that 
recipients of funds under this subtitle ensure the consistent 
participation by emergency shelters and homelessness prevention and 
rehousing programs in any applicable community-wide homeless management 
information system.''.

SEC. 204. ADMINISTRATIVE PROVISION.

  Section 418 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
11378) is amended by striking ``5 percent'' and inserting ``10 
percent''.

                  TITLE III--CONTINUUM OF CARE PROGRAM

SEC. 301. CONTINUUM OF CARE.

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

             ``Subtitle C--Continuum of Care Program''; and

          (2) by striking sections 421 and 422 (42 U.S.C. 11381 and 
        11382) and inserting the following new sections:

``SEC. 421. PURPOSES.

  ``The purposes of this subtitle are--
          ``(1) to promote community-wide commitment to the goal of 
        ending homelessness;
          ``(2) to provide funding for efforts by nonprofit providers 
        and State and local governments to quickly rehouse homeless 
        individuals and families while minimizing the trauma and 
        dislocation caused to individuals, families, and communities by 
        homelessness;
          ``(3) to promote access to, and effective utilization of, 
        mainstream programs described in section 203(a)(7) and programs 
        funded with State or local resources; and
          ``(4) to optimize self-sufficiency among individuals and 
        families experiencing homelessness.

``SEC. 422. CONTINUUM OF CARE APPLICATIONS AND GRANTS.

  ``(a) Projects.--The Secretary shall award grants, on a competitive 
basis, and using the selection criteria described in section 427, to 
carry out eligible activities under this subtitle for projects that 
meet the program requirements under section 426, either by directly 
awarding funds to project sponsors or by awarding funds to unified 
funding agencies.
  ``(b) Notification of Funding Availability.--The Secretary shall 
release a notification of funding availability for grants awarded under 
this subtitle for a fiscal year not later than 3 months after the date 
of the enactment of the appropriate Act making appropriations for the 
Department of Housing and Urban Development for such fiscal year.
  ``(c) Applications.--
          ``(1) Submission to the secretary.--To be eligible to receive 
        a grant under subsection (a), a project sponsor or unified 
        funding agency in a geographic area shall submit an application 
        to the Secretary at such time and in such manner as the 
        Secretary may require, and containing such information as the 
        Secretary determines necessary--
                  ``(A) to determine compliance with the program 
                requirements and selection criteria under this 
                subtitle; and
                  ``(B) to establish priorities for funding projects in 
                the geographic area.
          ``(2) Announcement of awards.--
                  ``(A) In general.--Except as provided in subparagraph 
                (B), the Secretary shall announce, within 5 months 
                after the last date for the submission of applications 
                described in this subsection for a fiscal year, the 
                grants conditionally awarded under subsection (a) for 
                that fiscal year.
                  ``(B) Transition.--For a period of up to 2 years 
                beginning after the effective date under section 503 of 
                the Homeless Emergency Assistance and Rapid Transition 
                to Housing Act of 2008, the Secretary shall announce, 
                within 6 months after the last date for the submission 
                of applications described in this subsection for a 
                fiscal year, the grants conditionally awarded under 
                subsection (a) for that fiscal year.
  ``(d) Obligation, Distribution, and Utilization of Funds.--
          ``(1) Requirements for obligation.--
                  ``(A) In general.--Not later than 9 months after the 
                announcement referred to in subsection (c)(2), each 
                recipient or project sponsor shall meet all 
                requirements for the obligation of those funds, 
                including site control, matching funds, and 
                environmental review requirements, except as provided 
                in subparagraphs (B) and (C).
                  ``(B) Acquisition, rehabilitation, or construction.--
                Not later than 24 months after the announcement 
                referred to in subsection (c)(2), each recipient or 
                project sponsor seeking the obligation of funds for 
                acquisition of housing, rehabilitation of housing, or 
                construction of new housing for a grant announced under 
                subsection (c)(2) shall meet all requirements for the 
                obligation of those funds, including site control, 
                matching funds, and environmental review requirements.
                  ``(C) Extensions.--At the discretion of the 
                Secretary, and in compelling circumstances, the 
                Secretary may extend the date by which a recipient or 
                project sponsor shall meet the requirements described 
                in subparagraphs (A) and (B) if the Secretary 
                determines that compliance with the requirements was 
                delayed due to factors beyond the reasonable control of 
                the recipient or project sponsor. Such factors may 
                include difficulties in obtaining site control for a 
                proposed project, completing the process of obtaining 
                secure financing for the project, obtaining approvals 
                from State or local governments, or completing the 
                technical submission requirements for the project.
          ``(2) Obligation.--Not later than 45 days after a recipient 
        or project sponsor meets the requirements described in 
        paragraph (1), the Secretary shall obligate the funds for the 
        grant involved.
          ``(3) Distribution.--A recipient that receives funds through 
        such a grant--
                  ``(A) shall distribute the funds to project sponsors 
                (in advance of expenditures by the project sponsors); 
                and
                  ``(B) shall distribute the appropriate portion of the 
                funds to a project sponsor not later than 45 days after 
                receiving a request for such distribution from the 
                project sponsor.
          ``(4) Expenditure of funds.--The Secretary may establish a 
        date by which funds made available through a grant announced 
        under subsection (c)(2) for a homeless assistance project shall 
        be entirely expended by the recipient or project sponsors 
        involved. The date established under this paragraph shall not 
        occur before the expiration of the 24-month period beginning on 
        the date that funds are obligated for activities described 
        under paragraphs (1) or (2) of section 423(a). The Secretary 
        shall recapture the funds not expended by such date. The 
        Secretary shall reallocate the funds for another homeless 
        assistance and prevention project that meets the requirements 
        of this subtitle to be carried out, if possible and 
        appropriate, in the same geographic area as the area served 
        through the original grant.
  ``(e) Renewal Funding for Unsuccessful Applicants.--The Secretary may 
renew funding for a specific project previously funded under this 
subtitle that the Secretary determines meets the purposes of this 
subtitle, and was included as part of a total application that met the 
criteria of subsection (c), even if the application was not selected to 
receive grant assistance. The Secretary may renew the funding for a 
period of not more than 1 year, and under such conditions as the 
Secretary determines to be appropriate.
  ``(f) Considerations in Determining Renewal Funding.--When providing 
renewal funding for leasing, operating costs, or rental assistance for 
permanent housing, the Secretary shall make adjustments proportional to 
increases in the fair market rents in the geographic area.
  ``(g) More Than 1 Application for a Geographic Area.--If more than 1 
collaborative applicant applies for funds for a geographic area, the 
Secretary shall award funds to the collaborative applicant with the 
highest score based on the selection criteria set forth in section 427.
  ``(h) Coordination With Low Income Housing Credit.--Assistance under 
this subtitle is intended to facilitate the utilization of Low Income 
Housing Credits under section 42 of the Internal Revenue Code of 1986.
  ``(i) Appeals.--
          ``(1) In general.--The Secretary shall establish a timely 
        appeal procedure for grant amounts awarded or denied under this 
        subtitle pursuant to a collaborative application or solo 
        application for funding.
          ``(2) Process.--The Secretary shall ensure that the procedure 
        permits appeals submitted by entities carrying out homeless 
        housing and services projects (including emergency shelters and 
        homelessness prevention programs), and all other applicants 
        under this subtitle.
  ``(j) Solo Applicants.--A solo applicant may submit an application to 
the Secretary for a grant under subsection (a) and be awarded such 
grant on the same basis as such grants are awarded to other applicants 
based on the criteria described in section 427, but only if the 
Secretary determines that the solo applicant has attempted to 
participate in the continuum of care process but was not permitted to 
participate in a reasonable manner. The Secretary may award such grants 
directly to such applicants in a manner determined to be appropriate by 
the Secretary.
  ``(k) Flexibility to Serve Persons Defined as Homeless Under Other 
Federal Laws.--
          ``(1) In general.--A collaborative applicant may use up to 10 
        percent of funds awarded under title III (continuum of care 
        funding) for any of the types of eligible activities specified 
        in paragraphs (1) through (7) of section 423(a) to serve 
        families with children and youth defined as homeless under 
        other Federal statutes, provided that the applicant 
        demonstrates that the use of such funds is of an equal or 
        greater priority or is equally or more cost effective in 
        meeting the overall goals and objectives of the plan submitted 
        under section 427(b)(1)(B), especially with respect to children 
        and unaccompanied youth.
          ``(2) Limitations.--The 10 percent limitation under paragraph 
        (1) shall not apply to collaborative applicants in which the 
        rate of homelessness, as calculated under section 427(b)(3), is 
        less than one-tenth of 1 percent of total population.''.

SEC. 302. ELIGIBLE ACTIVITIES.

  The McKinney-Vento Homeless Assistance Act is amended by striking 
section 423 (42 U.S.C. 11383) and inserting the following new section:

``SEC. 423. ELIGIBLE ACTIVITIES.

  ``(a) In General.--Grants awarded under section 422 to qualified 
applicants shall be used to carry out projects that serve homeless 
individuals or families that consist of one or more of the following 
eligible activities:
          ``(1) Construction of new housing units to provide 
        transitional or permanent housing.
          ``(2) Acquisition or rehabilitation of a structure to provide 
        transitional or permanent housing, other than emergency 
        shelter, or to provide supportive services.
          ``(3) Leasing of property, or portions of property, not owned 
        by the recipient or project sponsor involved, for use in 
        providing transitional or permanent housing, or providing 
        supportive services.
          ``(4) Provision of rental assistance to provide transitional 
        or permanent housing to eligible persons. The rental assistance 
        may include tenant-based, project-based, or sponsor-based 
        rental assistance. Project-based rental assistance, sponsor-
        based rental assistance, and operating cost assistance 
        contracts carried out by project sponsors receiving grants 
        under this section may, at the discretion of the applicant and 
        the project sponsor, have an initial term of 15 years, with 
        assistance for the first 5 years paid with funds authorized for 
        appropriation under this Act, and assistance for the remainder 
        of the term treated as a renewal of an expiring contract as 
        provided in section 408(b). Project-based rental assistance may 
        include rental assistance to preserve existing permanent 
        supportive housing for homeless individuals and families.
          ``(5) Payment of operating costs for housing units assisted 
        under this subtitle or for the preservation of housing that 
        will serve homeless individuals and families and for which 
        another form of assistance is expiring or otherwise no longer 
        available.
          ``(6) Supportive services for individuals and families who 
        are currently homeless, who have been homeless in the prior six 
        months but are currently residing in permanent housing, or who 
        were previously homeless and are currently residing in 
        permanent supportive housing.
          ``(7) Provision of rehousing services, including housing 
        search, mediation or outreach to property owners, credit 
        repair, providing security or utility deposits, rental 
        assistance for a final month at a location, assistance with 
        moving costs, or other activities that--
                  ``(A) are effective at moving homeless individuals 
                and families immediately into housing; or
                  ``(B) may benefit individuals and families who in the 
                prior 6 months have been homeless, but are currently 
                residing in permanent housing.
          ``(8) In the case of a collaborative applicant that is a 
        legal entity, performance of the duties described under section 
        402(f)(3).
          ``(9) Operation of, participation in, and ensuring consistent 
        participation by project sponsors in, a community-wide homeless 
        management information system.
          ``(10) In the case of a collaborative applicant that is a 
        legal entity, payment of administrative costs related to 
        meeting the requirements described in paragraphs (1) and (2) of 
        section 402(f), for which the collaborative applicant may use 
        not more than 3 percent of the total funds made available in 
        the geographic area under this subtitle for such costs.
          ``(11) In the case of a collaborative applicant that is a 
        unified funding agency under section 402(g), payment of 
        administrative costs related to meeting the requirements of 
        that section, for which the unified funding agency may use not 
        more than 3 percent of the total funds made available in the 
        geographic area under this subtitle for such costs, in addition 
        to funds used under paragraph (10).
          ``(12) Payment of administrative costs to project sponsors, 
        for which each project sponsor may use not more than 10 percent 
        of the total funds made available to that project sponsor 
        through this subtitle for such costs.
  ``(b) Minimum Grant Terms.--The Secretary may impose minimum grant 
terms of up to 5 years for new projects providing permanent housing.
  ``(c) Use Restrictions.--
          ``(1) Acquisition, rehabilitation, and new construction.--A 
        project that consists of activities described in paragraph (1) 
        or (2) of subsection (a) shall be operated for the purpose 
        specified in the application submitted for the project under 
        section 422 for not less than 20 years.
          ``(2) Other activities.--A project that consists of 
        activities described in any of paragraphs (3) through (12) of 
        subsection (a) shall be operated for the purpose specified in 
        the application submitted for the project under section 422 for 
        the duration of the grant period involved.
          ``(3) Conversion.--If the recipient or project sponsor 
        carrying out a project that provides transitional or permanent 
        housing submits a request to the Secretary to carry out instead 
        a project for the direct benefit of low-income persons, and the 
        Secretary determines that the initial project is no longer 
        needed to provide transitional or permanent housing, the 
        Secretary may approve the project described in the request and 
        authorize the recipient or project sponsor to carry out that 
        project.
  ``(d) Repayment of Assistance and Prevention of Undue Benefits.--
          ``(1) Repayment.--If a recipient or project sponsor receives 
        assistance under section 422 to carry out a project that 
        consists of activities described in paragraph (1) or (2) of 
        subsection (a) and the project ceases to provide transitional 
        or permanent housing--
                  ``(A) earlier than 10 years after operation of the 
                project begins, the Secretary shall require the 
                recipient or project sponsor to repay 100 percent of 
                the assistance; or
                  ``(B) not earlier than 10 years, but earlier than 20 
                years, after operation of the project begins, the 
                Secretary shall require the recipient or project 
                sponsor to repay 10 percent of the assistance for each 
                of the years in the 20-year period for which the 
                project fails to provide that housing.
          ``(2) Prevention of undue benefits.--Except as provided in 
        paragraph (3), if any property is used for a project that 
        receives assistance under subsection (a) and consists of 
        activities described in paragraph (1) or (2) of subsection (a), 
        and the sale or other disposition of the property occurs before 
        the expiration of the 20-year period beginning on the date that 
        operation of the project begins, the recipient or project 
        sponsor who received the assistance shall comply with such 
        terms and conditions as the Secretary may prescribe to prevent 
        the recipient or project sponsor from unduly benefitting from 
        such sale or disposition.
          ``(3) Exception.--A recipient or project sponsor shall not be 
        required to make the repayments, and comply with the terms and 
        conditions, required under paragraph (1) or (2) if--
                  ``(A) the sale or disposition of the property used 
                for the project results in the use of the property for 
                the direct benefit of very low-income persons;
                  ``(B) all of the proceeds of the sale or disposition 
                are used to provide transitional or permanent housing 
                meeting the requirements of this subtitle;
                  ``(C) project-based rental assistance or operating 
                cost assistance from any Federal program or an 
                equivalent State or local program is no longer made 
                available and the project is meeting applicable 
                performance standards, provided that the portion of the 
                project that had benefitted from such assistance 
                continues to meet the tenant income and rent 
                restrictions for low-income units under section 42(g) 
                of the Internal Revenue Code of 1986; or
                  ``(D) there are no individuals and families in the 
                geographic area who are homeless, in which case the 
                project may serve individuals and families at risk of 
                homelessness.
  ``(e) Staff Training.--The Secretary may allow reasonable costs 
associated with staff training to be included as part of the activities 
described in subsection (a).
  ``(f) Eligibility for Permanent Housing.--Any project that receives 
assistance under subsection (a) and that provides project-based or 
sponsor-based permanent housing for homeless individuals or families 
with a disability, including projects that meet the requirements of 
subsection (a) and subsection (d)(2)(A) of section 428 may also serve 
individuals who had previously met the requirements for such project 
prior to moving into a different permanent housing project.
  ``(g) Administration of Rental Assistance.--Provision of permanent 
housing rental assistance shall be administered by a State, unit of 
general local government, or public housing agency.''.

SEC. 303. HIGH PERFORMING COMMUNITIES.

   The McKinney-Vento Homeless Assistance Act is amended by striking 
section 424 (42 U.S.C. 11384) and inserting the following:

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

  ``(a) Designation as a High-Performing Community.--
          ``(1) In general.--The Secretary shall designate, on an 
        annual basis, which collaborative applicants represent high-
        performing communities.
          ``(2) Consideration.--In determining whether to designate a 
        collaborative applicant as a high-performing community under 
        paragraph (1), the Secretary shall establish criteria to ensure 
        that the requirements described under paragraphs (1)(B) and 
        (2)(B) of subsection (d) are measured by comparing homeless 
        individuals and families under similar circumstances, in order 
        to encourage projects in the geographic area to serve homeless 
        individuals and families with more severe barriers to housing 
        stability.
          ``(3) 2-year phase in.--In each of the first 2 years after 
        the effective date under section 503 of the Homeless Emergency 
        Assistance and Rapid Transition to Housing Act of 2008, the 
        Secretary shall designate not more than 10 collaborative 
        applicants as high-performing communities.
          ``(4) Excess of qualified applicants.--If, during the 2-year 
        period described under paragraph (2), more than 10 
        collaborative applicants could qualify to be designated as 
        high-performing communities, the Secretary shall designate the 
        10 that have, in the discretion of the Secretary, the best 
        performance based on the criteria described under subsection 
        (d).
          ``(5) Time limit on designation.--The designation of any 
        collaborative applicant as a high-performing community under 
        this subsection shall be effective only for the year in which 
        such designation is made. The Secretary, on an annual basis, 
        may renew any such designation.
  ``(b) Application.--
          ``(1) In general.--A collaborative applicant seeking 
        designation as a high-performing community under subsection (a) 
        shall submit an application to the Secretary at such time, and 
        in such manner as the Secretary may require.
          ``(2) Content of application.--In any application submitted 
        under paragraph (1), a collaborative applicant shall include in 
        such application--
                  ``(A) a report showing how any money received under 
                this subtitle in the preceding year was expended; and
                  ``(B) information that such applicant can meet the 
                requirements described under subsection (d).
          ``(3) Publication of application.--The Secretary shall--
                  ``(A) publish any report or information submitted in 
                an application under this section in the geographic 
                area represented by the collaborative applicant; and
                  ``(B) seek comments from the public as to whether the 
                collaborative applicant seeking designation as a high-
                performing community meets the requirements described 
                under subsection (d).
  ``(c) Use of Funds.--Funds awarded under section 422(a) to a project 
sponsor who is located in a high-performing community may be used--
          ``(1) for any of the eligible activities described in section 
        423; or
          ``(2) for any of the eligible activities described in 
        paragraphs (4) and (5) of section 415(a).
  ``(d) Definition of High-Performing Community.--For purposes of this 
section, the term `high-performing community' means a geographic area 
that demonstrates through reliable data that all five of the following 
requirements are met for that geographic area:
          ``(1) Term of homelessness.--The mean length of episodes of 
        homelessness for that geographic area--
                  ``(A) is less than 20 days; or
                  ``(B) for individuals and families in similar 
                circumstances in the preceding year was at least 10 
                percent less than in the year before.
          ``(2) Families leaving homelessness.--Of individuals and 
        families--
                  ``(A) who leave homelessness, fewer than 5 percent of 
                such individuals and families become homeless again at 
                any time within the next 2 years; or
                  ``(B) in similar circumstances who leave 
                homelessness, the percentage of such individuals and 
                families who become homeless again within the next 2 
                years has decreased by at least 20 percent from the 
                preceding year.
          ``(3) Community action.--The communities that compose the 
        geographic area have--
                  ``(A) actively encouraged homeless individuals and 
                families to participate in homeless assistance services 
                available in that geographic area; and
                  ``(B) included each homeless individual or family who 
                sought homeless assistance services in the data system 
                used by that community for determining compliance with 
                this subsection.
          ``(4) Effectiveness of previous activities.--If recipients in 
        the geographic area have used funding awarded under section 
        422(a) for eligible activities described under section 415(a) 
        in previous years based on the authority granted under 
        subsection (c), that such activities were effective at reducing 
        the number of individuals and families who became homeless in 
        that community.
          ``(5) Flexibility to serve persons defined as homeless under 
        other federal laws.--With respect to collaborative applicants 
        exercising the authority under section 422(k) to serve homeless 
        families with children and youth defined as homeless under 
        other Federal statutes, effectiveness in achieving the goals 
        and outcomes identified in subsection 427(b)(1)(F) according to 
        such standards as the Secretary shall promulgate.
  ``(e) Cooperation Among Entities.--A collaborative applicant 
designated as a high-performing community under this section shall 
cooperate with the Secretary in distributing information about 
successful efforts within the geographic area represented by the 
collaborative applicant to reduce homelessness.''.

SEC. 304. PROGRAM REQUIREMENTS.

  Section 426 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
11386) is amended--
          (1) by striking subsections (a), (b), and (c) and inserting 
        the following:
  ``(a) Site Control.--The Secretary shall require that each 
application include reasonable assurances that the applicant will own 
or have control of a site for the proposed project not later than the 
expiration of the 12-month period beginning upon notification of an 
award for grant assistance, unless the application proposes providing 
supportive housing assistance under section 423(a)(3) or housing that 
will eventually be owned or controlled by the families and individuals 
served. An applicant may obtain ownership or control of a suitable site 
different from the site specified in the application. If any recipient 
or project sponsor 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) Required Agreements.--The Secretary may not provide assistance 
for a proposed project under this subtitle unless the collaborative 
applicant involved agrees--
          ``(1) to ensure the operation of the project in accordance 
        with the provisions of this subtitle;
          ``(2) to monitor and report to the Secretary the progress of 
        the project;
          ``(3) to ensure, to the maximum extent practicable, that 
        individuals and families experiencing homelessness are 
        involved, through employment, provision of volunteer services, 
        or otherwise, in constructing, rehabilitating, maintaining, and 
        operating facilities for the project and in providing 
        supportive services for the project;
          ``(4) to require certification from all project sponsors 
        that--
                  ``(A) they will maintain the confidentiality of 
                records pertaining to any individual or family provided 
                family violence prevention or treatment services 
                through the project;
                  ``(B) that the address or location of any family 
                violence shelter project assisted under this subtitle 
                will not be made public, except with written 
                authorization of the person responsible for the 
                operation of such project;
                  ``(C) they will establish policies and practices that 
                are consistent with, and do not restrict the exercise 
                of rights provided by, subtitle B of title VII, and 
                other laws relating to the provision of educational and 
                related services to individuals and families 
                experiencing homelessness;
                  ``(D) in the case of programs that provide housing or 
                services to families, they will designate a staff 
                person to be responsible for ensuring that children 
                being served in the program are enrolled in school and 
                connected to appropriate services in the community, 
                including early childhood programs such as Head Start, 
                part C of the Individuals with Disabilities Education 
                Act, and programs authorized under subtitle B of title 
                VII of this Act (42 U.S.C. 11431 et seq.); and
                  ``(E) they will provide data and reports as required 
                by the Secretary pursuant to the Act;
          ``(5) if a collaborative applicant is a unified funding 
        agency under section 402(g) and receives funds under subtitle C 
        to carry out the payment of administrative costs described in 
        section 423(a)(11), to establish such fiscal control and fund 
        accounting procedures as may be necessary to assure the proper 
        disbursal of, and accounting for, such funds in order to ensure 
        that all financial transactions carried out with such funds are 
        conducted, and records maintained, in accordance with generally 
        accepted accounting principles;
          ``(6) to monitor and report to the Secretary the provision of 
        matching funds as required by section 430;
          ``(7) to take the educational needs of children into account 
        when families are placed in emergency or transitional shelter 
        and will, to the maximum extent practicable, place families 
        with children as close as possible to their school of origin so 
        as not to disrupt such children's education; and
          ``(8) to comply with such other terms and conditions as the 
        Secretary may establish to carry out this subtitle in an 
        effective and efficient manner.'';
          (2) by redesignating subsection (d) as subsection (c);
          (3) in the first sentence of subsection (c) (as so 
        redesignated by paragraph (2) of this subsection), by striking 
        ``recipient'' and inserting ``recipient or project sponsor'';
          (4) by striking subsection (e);
          (5) by redesignating subsections (f), (g), and (h), as 
        subsections (d), (e), and (f), respectively;
          (6) in the first sentence of subsection (e) (as so 
        redesignated by paragraph (5) of this section), by striking 
        ``recipient'' each place it appears and inserting ``recipient 
        or project sponsor'';
          (7) by striking subsection (i); and
          (8) by redesignating subsection (j) as subsection (g).

SEC. 305. SELECTION CRITERIA, ALLOCATION AMOUNTS, AND FUNDING.

  The McKinney-Vento Homeless Assistance Act is amended--
          (1) by repealing section 429 (42 U.S.C. 11389); and
          (2) by redesignating sections 427 and 428 (42 U.S.C. 11387, 
        11388) as sections 432 and 433, respectively; and
          (3) by inserting after section 426 the following new 
        sections:

``SEC. 427. SELECTION CRITERIA.

  ``(a) In General.--The Secretary shall award funds to recipients 
through a national competition between geographic areas based on 
criteria established by the Secretary.
  ``(b) Required Criteria.--
          ``(1) In general.--The criteria established under subsection 
        (a) shall include--
                  ``(A) the previous performance of the recipient 
                regarding homelessness, including performance related 
                to funds provided under section 412 (except that 
                recipients applying from geographic areas where no 
                funds have been awarded under this subtitle, or under 
                subtitles C, D, E, or F of title IV of this Act, as in 
                effect prior to the date of the enactment of the 
                Homeless Emergency Assistance and Rapid Transition to 
                Housing Act of 2008, shall receive full credit for 
                performance under this subparagraph), measured by 
                criteria that shall be announced by the Secretary, that 
                shall take into account barriers faced by individual 
                homeless people, and that shall include--
                          ``(i) the length of time individuals and 
                        families remain homeless;
                          ``(ii) the extent to which individuals and 
                        families who leave homelessness experience 
                        additional spells of homelessness;
                          ``(iii) the thoroughness of grantees in the 
                        geographic area in reaching homeless 
                        individuals and families;
                          ``(iv) overall reduction in the number of 
                        homeless individuals and families;
                          ``(v) jobs and income growth for homeless 
                        individuals and families;
                          ``(vi) success at reducing the number of 
                        individuals and families who become homeless;
                          ``(vii) other accomplishments by the 
                        recipient related to reducing homelessness; and
                          ``(viii) for collaborative applicants that 
                        have exercised the authority under section 
                        422(k) to serve families with children and 
                        youth defined as homeless under other Federal 
                        statutes, success in achieving the goals and 
                        outcomes identified in section 427(b)(1)(F);
                  ``(B) the plan of the recipient, which shall 
                describe--
                          ``(i) how the number of individuals and 
                        families who become homeless will be reduced in 
                        the community;
                          ``(ii) how the length of time that 
                        individuals and families remain homeless will 
                        be reduced;
                          ``(iii) how the recipient will collaborate 
                        with local education authorities to assist in 
                        the identification of individuals and families 
                        who become or remain homeless and are informed 
                        of their eligibility for services under 
                        subtitle B of title VII of this Act (42 U.S.C. 
                        11431 et seq.);
                          ``(iv) the extent to which the recipient 
                        will--
                                  ``(I) address the needs of all 
                                relevant subpopulations;
                                  ``(II) incorporate comprehensive 
                                strategies for reducing homelessness, 
                                including the interventions referred to 
                                in section 428(d);
                                  ``(III) set quantifiable performance 
                                measures;
                                  ``(IV) set timelines for completion 
                                of specific tasks;
                                  ``(V) identify specific funding 
                                sources for planned activities; and
                                  ``(VI) identify an individual or body 
                                responsible for overseeing 
                                implementation of specific strategies; 
                                and
                          ``(v) whether the recipient proposes to 
                        exercise authority to use funds under section 
                        422(k), and if so, how the recipient will 
                        achieve the goals and outcomes identified in 
                        section 427(b)(1)(F);
                  ``(C) the methodology of the recipient used to 
                determine the priority for funding local projects under 
                section 422(c)(1), including the extent to which the 
                priority-setting process--
                          ``(i) uses periodically collected information 
                        and analysis to determine the extent to which 
                        each project has resulted in rapid return to 
                        permanent housing for those served by the 
                        project, taking into account the severity of 
                        barriers faced by the people the project 
                        serves;
                          ``(ii) considers the full range of opinions 
                        from individuals or entities with knowledge of 
                        homelessness in the geographic area or an 
                        interest in preventing or ending homelessness 
                        in the geographic area;
                          ``(iii) is based on objective criteria that 
                        have been publicly announced by the recipient; 
                        and
                          ``(iv) is open to proposals from entities 
                        that have not previously received funds under 
                        this subtitle;
                  ``(D) the extent to which the amount of assistance to 
                be provided under this subtitle to the recipient will 
                be supplemented with resources from other public and 
                private sources, including mainstream programs 
                identified by the Government Accountability Office in 
                the two reports described in section 203(a)(7);
                  ``(E) demonstrated coordination by the recipient with 
                the other Federal, State, local, private, and other 
                entities serving individuals and families experiencing 
                homelessness and at risk of homelessness in the 
                planning and operation of projects;
                  ``(F) for collaborative applicants exercising the 
                authority under section 422(k) to serve homeless 
                families with children and youth defined as homeless 
                under other Federal statutes, program goals and 
                outcomes, which shall include--
                          ``(i) preventing homelessness among the 
                        subset of such families with children and youth 
                        who are at highest risk of becoming homeless, 
                        as such term is defined for purposes of this 
                        title; or
                          ``(ii) achieving independent living in 
                        permanent housing among such families with 
                        children and youth, especially those who have a 
                        history of doubled-up and other temporary 
                        housing situations or are living in a temporary 
                        housing situation due to lack of available and 
                        appropriate emergency shelter, through the 
                        provision of eligible assistance that directly 
                        contributes to achieving such results including 
                        assistance to address chronic disabilities, 
                        chronic physical health or mental health 
                        conditions, substance addiction, histories of 
                        domestic violence or childhood abuse, or 
                        multiple barriers to employment; and
                  ``(G) such other factors as the Secretary determines 
                to be appropriate to carry out this subtitle in an 
                effective and efficient manner.
          ``(2) Additional criteria.--In addition to the criteria 
        required under paragraph (1), the criteria established under 
        paragraph (1) shall also include the need within the geographic 
        area for homeless services, determined as follows and under the 
        following conditions:
                  ``(A) Notice.--The Secretary shall inform each 
                collaborative applicant, at a time concurrent with the 
                release of the notice of funding availability for the 
                grants, of the pro rata estimated grant amount under 
                this subtitle for the geographic area represented by 
                the collaborative applicant.
                  ``(B) Amount.--
                          ``(i) Basis.--Such estimated grant amount 
                        shall be based on a percentage of the total 
                        funds available, or estimated to be available, 
                        to carry out this subtitle for any fiscal year 
                        that is equal to the percentage of the total 
                        amount available for section 106 of the Housing 
                        and Community Development Act of 1974 (42 
                        U.S.C. 5306) for the prior fiscal year that
                                  ``(I) was allocated to all 
                                metropolitan cities and urban counties 
                                within the geographic area represented 
                                by the collaborative applicant; or
                                  ``(II) would have been distributed to 
                                all counties within such geographic 
                                area that are not urban counties, if 
                                the 30 percent portion of the 
                                allocation to the State involved (as 
                                described in subsection (d)(1) of that 
                                section 106) for that year had been 
                                distributed among the counties that are 
                                not urban counties in the State in 
                                accordance with the formula specified 
                                in that subsection (with references in 
                                that subsection to nonentitlement areas 
                                considered to be references to those 
                                counties).
                          ``(ii) Adjustment.--In computing the 
                        estimated grant amount, the Secretary shall 
                        adjust the estimated grant amount determined 
                        pursuant to clause (i) to ensure that--
                                  ``(I) 75 percent of the total funds 
                                available, or estimated to be 
                                available, to carry out this subtitle 
                                for any fiscal year are allocated to 
                                the metropolitan cities and urban 
                                counties that received a direct 
                                allocation of funds under section 413 
                                for the prior fiscal year; and
                                  ``(II) 25 percent of the total funds 
                                available, or estimated to be 
                                available, to carry out this subtitle 
                                for any fiscal year are allocated--
                                          ``(aa) to the metropolitan 
                                        cities and urban counties that 
                                        did not receive a direct 
                                        allocation of funds under 
                                        section 413 for the prior 
                                        fiscal year; and
                                          ``(bb) to counties that are 
                                        not urban counties.
                          ``(iii) Combinations or consortia.--For any 
                        collaborative applicant that represents a 
                        combination or consortium of cities or 
                        counties, the estimated grant amount shall be 
                        the sum of the estimated grant amounts for the 
                        cities or counties represented by the 
                        collaborative applicant.
          ``(3) Homelessness counts.--The Secretary shall not require 
        that communities conduct an actual count of homeless people 
        other than those described in paragraphs (1) through (4) of 
        section 103(a) of this Act (42 U.S.C. 11302(a)).
  ``(c) Adjustments.--The Secretary may adjust the formula described in 
subsection (b)(2) as necessary--
          ``(1) to ensure that each collaborative applicant has 
        sufficient funding to renew all qualified projects for at least 
        one year; and
          ``(2) to ensure that collaborative applicants are not 
        discouraged from replacing renewal projects with new projects 
        that the collaborative applicant determines will better be able 
        to meet the purposes of this Act.

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

  ``(a) Minimum Allocation for Permanent Housing for Homeless 
Individuals and Families With Disabilities.--
          ``(1) In general.--From the amounts made available to carry 
        out this subtitle for a fiscal year, a portion equal to not 
        less than 30 percent of the sums made available under section 
        408, not including amounts described in section 408(b), shall 
        be used for new permanent housing for homeless individuals with 
        disabilities and homeless families that include such an 
        individual who is an adult or a minor head of household if no 
        adult is present in the household.
          ``(2) Calculation.--In calculating the portion of the amount 
        described in paragraph (1) that is used for activities that are 
        described in paragraph (1), the Secretary shall not count funds 
        made available to renew contracts for existing projects under 
        section 408(b).
          ``(3) Adjustments.--The 30 percent figure in paragraph (1) 
        shall be reduced as follows:
                  ``(A) Proportionately based on need under section 
                427(b)(2) in geographic areas for which subsection (e) 
                applies in regard to subsection (d)(2)(A); and
                  ``(B) by two percentage points for every three 
                percentage points above 35 percent of the amount of 
                funding provided under subtitle B and this subtitle 
                that is needed to renew existing grants for one year, 
                other than those provided for under section 429.
          ``(4) Termination.--The requirement established in paragraph 
        (1) shall terminate upon a finding by the Secretary that since 
        the beginning of 2001 at least 150,000 new units of permanent 
        housing for homeless individuals and families with disabilities 
        have been funded under this subtitle.
  ``(b) Set-Aside for Permanent Housing for Homeless Families With 
Children.--From the amounts made available to carry out this subtitle 
for a fiscal year, a portion equal to not less than 10 percent of the 
sums made available to carry out subtitle B and this subtitle for that 
fiscal year shall be used to provide or secure permanent housing for 
homeless families with children.
  ``(c) Treatment of Amounts for Permanent or Transitional Housing.--
Nothing in this Act may be construed to establish a limit on the amount 
of funding that an applicant may request under this subtitle for 
acquisition, construction, or rehabilitation activities for the 
development of permanent housing or transitional housing.
  ``(d) Incentives for Proven Strategies.--
          ``(1) In general.--The Secretary shall provide bonuses or 
        other incentives to geographic areas for using funding under 
        this subtitle for activities that have been proven to be 
        effective at reducing homelessness generally, reducing 
        homelessness for a specific subpopulation, or achieving 
        homeless prevention and independent living goals as set forth 
        in section 427(b)(1)(F).
          ``(2) Rule of construction.--For purposes of this subsection, 
        activities that have been proven to be effective at reducing 
        homelessness generally or reducing homelessness for a specific 
        subpopulation includes--
                  ``(A) permanent supportive housing for chronically 
                homeless individuals and families;
                  ``(B) for homeless families, rapid rehousing 
                services, short-term flexible subsidies to overcome 
                barriers to rehousing, support services concentrating 
                on improving incomes to pay rent, coupled with 
                performance measures emphasizing rapid and permanent 
                rehousing and with leveraging funding from mainstream 
                family service systems such as Temporary Assistance for 
                Needy Families and Child Welfare services; and
                  ``(C) any other activity determined by the Secretary, 
                based on research and after notice and comment to the 
                public, to have been proven effective at reducing 
                homelessness generally, reducing homelessness for a 
                specific subpopulation, or achieving homeless 
                prevention and independent living goals as set forth in 
                section 427(b)(1)(F).
          ``(3) Balance of incentives for proven strategies.--To the 
        extent practicable, in providing bonuses or incentives for 
        proven strategies, the Secretary shall seek to maintain a 
        balance among strategies targeting homeless individuals, 
        families, and other subpopulations. The Secretary shall not 
        implement bonuses or incentives that specifically discourage 
        collaborative applicants from exercising their flexibility to 
        serve families with children and youth defined as homeless 
        under other Federal statutes.
  ``(e) Incentives for Successful Implementation of Proven 
Strategies.--If any geographic area demonstrates that it has fully 
implemented any of the activities described in subsection (d) for all 
homeless individuals and families or for all members of subpopulations 
for whom such activities are targeted, that geographic area shall 
receive the bonus or incentive provided under subsection (d), but may 
use such bonus or incentive for any eligible activity under either 
section 423 or paragraphs (4) and (5) of section 415(a) for homeless 
people generally or for the relevant subpopulation.

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

  ``(a) In General.--Renewal of permanent housing contracts, as 
provided under section 408(b), may be funded either under the 
appropriations account for this title or may be funded under the 
section 8 project-based rental assistance account, except that renewal 
under the project-based rental assistance account shall be contingent 
on sufficient funding in such account for the full year renewal of all 
project-based contracts expiring in such year.
  ``(b) Renewals.--The sums made available under section 408(b) shall 
be available for the renewal of contracts in the case of tenant-based 
assistance, successive one-year terms, and in the case of project-based 
assistance, successive terms of up to 15 years at the discretion of the 
applicant or project sponsor and subject to the availability of annual 
appropriations, for rental assistance and housing operation costs 
associated with permanent housing projects funded under this subtitle, 
or under subtitle C or F (as in effect on the day before the effective 
date under section 503 of the Homeless Emergency Assistance and Rapid 
Transition to Housing Act of 2008). The Secretary shall determine 
whether to renew a contract for such a permanent housing project on the 
basis of certification by the collaborative applicant for the 
geographic area that--
          ``(1) there is a demonstrated need for the project; and
          ``(2) the project complies with program requirements and 
        appropriate standards of housing quality and habitability, as 
        determined by the Secretary.
  ``(c) Construction.--Nothing in this section shall be construed as 
prohibiting the Secretary from renewing contracts under this subtitle 
in accordance with criteria set forth in a provision of this subtitle 
other than this section.

``SEC. 430. MATCHING FUNDING.

  ``(a) In General.--A collaborative applicant in a geographic area in 
which funds are awarded under this subtitle shall specify contributions 
from any source other than a grant awarded under this subtitle, 
including renewal funding of projects assisted under subtitles C, D, 
and F of this title as in effect before the effective date under 
section 503 of the Homeless Emergency Assistance and Rapid Transition 
to Housing Act of 2008, that shall be made available in the geographic 
area in an amount equal to not less than 25 percent of the funds 
provided to recipients in the geographic area, except that grants for 
leasing shall not be subject to any match requirement.
  ``(b) Limitations on In-Kind Match.--The cash value of services 
provided to the residents or clients of a project sponsor by an entity 
other than the project sponsor may count toward the contributions in 
subsection (a) only when documented by a memorandum of understanding 
between the project sponsor and the other entity that such services 
will be provided.
  ``(c) Countable Activities.--The contributions required under 
subsection (a) may consist of--
          ``(1) funding for any eligible activity described under 
        section 423; and
          ``(2) subject to subsection (b), in-kind provision of 
        services of any eligible activity described under section 423.

``SEC. 431. APPEAL PROCEDURE.

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

SEC. 306. RESEARCH.

  There is authorized to be appropriated $8,000,000, for each of fiscal 
years 2010, 2011, 2012, and 2013, for research into the efficacy of 
interventions for homeless families, to be expended by the Secretary of 
Housing and Urban Development over the 3 years at 3 different sites to 
provide services for homeless families and evaluate the effectiveness 
of such services.

          TITLE IV--RURAL HOUSING STABILITY ASSISTANCE PROGRAM

SEC. 401. RURAL HOUSING STABILITY ASSISTANCE.

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

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

          (2) in section 491--
                  (A) by striking the section heading and inserting 
                ``RURAL HOUSING STABILITY GRANT PROGRAM.'';
                  (B) in subsection (a)--
                          (i) by striking ``rural homelessness grant 
                        program'' and inserting ``rural housing 
                        stability grant program'';
                          (ii) by inserting ``in lieu of grants under 
                        subtitle C'' after ``eligible organizations''; 
                        and
                          (iii) by striking paragraphs (1), (2), and 
                        (3), and inserting the following:
          ``(1) rehousing or improving the housing situations of 
        individuals and families who are homeless or at risk of 
        homelessness in the geographic area;
          ``(2) stabilizing the housing of individuals and families who 
        are in imminent danger of losing housing; and
          ``(3) improving the ability of the lowest-income residents of 
        the community to afford stable housing.'';
                  (C) in subsection (b)(1)--
                          (i) by redesignating subparagraphs (E), (F), 
                        and (G) as subparagraphs (I), (J), and (K), 
                        respectively; and
                          (ii) by striking subparagraph (D) and 
                        inserting the following:
                  ``(D) construction of new housing units to provide 
                transitional or permanent housing to homeless 
                individuals and families and individuals and families 
                at risk of homelessness;
                  ``(E) acquisition or rehabilitation of a structure to 
                provide supportive services or to provide transitional 
                or permanent housing, other than emergency shelter, to 
                homeless individuals and families and individuals and 
                families at risk of homelessness;
                  ``(F) leasing of property, or portions of property, 
                not owned by the recipient or project sponsor involved, 
                for use in providing transitional or permanent housing 
                to homeless individuals and families and individuals 
                and families at risk of homelessness, or providing 
                supportive services to such homeless and at-risk 
                individuals and families;
                  ``(G) provision of rental assistance to provide 
                transitional or permanent housing to homeless 
                individuals and families and individuals and families 
                at risk of homelessness, such rental assistance may 
                include tenant-based or project-based rental 
                assistance;
                  ``(H) payment of operating costs for housing units 
                assisted under this title;'';
                  (D) in subsection (b)(2), by striking 
                ``appropriated'' and inserting ``transferred'';
                  (E) in subsection (c)--
                          (i) in paragraph (1)(A), by striking 
                        ``appropriated'' and inserting ``transferred''; 
                        and
                          (ii) in paragraph (3), by striking 
                        ``appropriated'' and inserting ``transferred'';
                  (F) in subsection (d)--
                          (i) in paragraph (5), by striking ``; and'' 
                        and inserting a semicolon;
                          (ii) in paragraph (6)--
                                  (I) by striking ``an agreement'' and 
                                all that follows through ``families'' 
                                and inserting the following: ``a 
                                description of how individuals and 
                                families who are homeless or who have 
                                the lowest incomes in the community 
                                will be involved by the organization''; 
                                and
                                  (II) by striking the period at the 
                                end, and inserting a semicolon; and
                          (iii) by adding at the end the following:
          ``(7) a description of consultations that took place within 
        the community to ascertain the most important uses for funding 
        under this section, including the involvement of potential 
        beneficiaries of the project; and
          ``(8) a description of the extent and nature of homelessness 
        and of the worst housing situations in the community.'';
                  (G) by striking subsections (f) and (g) and inserting 
                the following:
  ``(f) Matching Funding.--
          ``(1) In general.--An organization eligible to receive a 
        grant under subsection (a) shall specify matching contributions 
        from any source other than a grant awarded under this subtitle, 
        that shall be made available in the geographic area in an 
        amount equal to not less than 25 percent of the funds provided 
        to recipients in the geographic area, except that grants for 
        leasing shall not be subject to any match requirement.
          ``(2) Limitations on in-kind match.--The cash value of 
        services provided to the beneficiaries or clients of an 
        eligible organization by an entity other than the organization 
        may count toward the contributions in paragraph (1) only when 
        documented by a memorandum of understanding between the 
        organization and the other entity that such services will be 
        provided.
          ``(3) Countable activities.--The contributions required under 
        paragraph (1) may consist of--
                  ``(A) funding for any eligible activity described 
                under subsection (b); and
                  ``(B) subject to paragraph (2), in-kind provision of 
                services of any eligible activity described under 
                subsection (b).
  ``(g) Selection Criteria.--The Secretary shall establish criteria for 
selecting recipients of grants under subsection (a), including--
          ``(1) the participation of potential beneficiaries of the 
        project in assessing the need for, and importance of, the 
        project in the community;
          ``(2) the degree to which the project addresses the most 
        harmful housing situations present in the community;
          ``(3) the degree of collaboration with others in the 
        community to meet the goals described in subsection (a);
          ``(4) the performance of the organization in improving 
        housing situations, taking account of the severity of barriers 
        of individuals and families served by the organization;
          ``(5) for organizations that have previously received funding 
        under this section, the extent of improvement in homelessness 
        and the worst housing situations in the community since such 
        funding began;
          ``(6) the need for such funds, as determined by the formula 
        established under section 427(b)(2); and
          ``(7) any other relevant criteria as determined by the 
        Secretary.'';
                  (H) in subsection (h)--
                          (i) in paragraph (1)--
                                  (I) in paragraph (1)(A), by striking 
                                ``The'' and inserting ``Not later than 
                                18 months after funding is first made 
                                available pursuant to the amendments 
                                made by title IV of the Homeless 
                                Emergency Assistance and Rapid 
                                Transition to Housing Act of 2008, 
                                the''; and
                                  (II) by striking ``providing housing 
                                and other assistance to homeless 
                                persons'' and inserting ``meeting the 
                                goals described in subsection (a)'';
                          (ii) in paragraph (1)(B), by striking 
                        ``address homelessness in rural areas'' and 
                        inserting ``meet the goals described in 
                        subsection (a) in rural areas''; and
                          (iii) in paragraph (2)--
                                  (I) by striking ``The'' and inserting 
                                ``Not later than 24 months after 
                                funding is first made available 
                                pursuant to the amendment made by title 
                                IV of the Homeless Emergency Assistance 
                                and Rapid Transition to Housing Act of 
                                2008, the'';
                                  (II) by striking ``, not later than 
                                18 months after the date on which the 
                                Secretary first makes grants under the 
                                program,''; and
                                  (III) by striking ``prevent and 
                                respond to homelessness'' and inserting 
                                ``meet the goals described in 
                                subsection (a)'';
                  (I) in subsection (k)--
                          (i) in paragraph (1), by striking ``rural 
                        homelessness grant program'' and inserting 
                        ``rural housing stability grant program''; and
                          (ii) in paragraph (2)(B)(ii), by striking 
                        ``rural census tract'' and inserting ``census 
                        tract where at least 75 percent of the 
                        population is rural'';
                  (J) in subsection (l)--
                          (i) by striking the subsection heading and 
                        inserting ``Program Funding.--''; and
                          (ii) by striking paragraph (1) and inserting 
                        the following:
          ``(1) In general.--The Secretary shall determine the total 
        amount of funding attributable under section 427(b)(2) to meet 
        the needs of any geographic area in the Nation that applies for 
        funding under this section. The Secretary shall transfer any 
        amounts determined under this subsection from the Community 
        Homeless Assistance Program and consolidate such transferred 
        amounts for grants under this section, except that the 
        Secretary shall transfer an amount not less than 5 percent of 
        the amount available under this subtitle for grants under this 
        section.''; and
                  (K) by adding at the end the following:
  ``(m) Division of Funds.--
          ``(1) Agreement among geographic areas.--If the Secretary 
        receives an application or applications to provide services in 
        a geographic area under this subtitle, and also under subtitle 
        C, the Secretary shall consult with all applicants from the 
        geographic area to determine whether all agree to proceed under 
        either this subtitle or under subtitle C.
          ``(2) Default if no agreement.--If no agreement is reached 
        under paragraph (1), the Secretary shall proceed under this 
        subtitle or under subtitle C, depending on which results in the 
        largest total grant funding to the geographic area.''.

SEC. 402. GAO STUDY OF HOMELESSNESS AND HOMELESS ASSISTANCE IN RURAL 
                    AREAS.

  (a) Study and Report.--Not later than the expiration of the 12-month 
period beginning on the date of the enactment of this Act, the 
Comptroller General of the United States shall conduct a study to 
examine homelessness and homeless assistance in rural areas and rural 
communities and submit a report to the Congress on the findings and 
conclusion of the study. The report shall contain the following 
matters:
          (1) A general description of homelessness, including the 
        range of living situations among homeless individuals and 
        homeless families, in rural areas and rural communities of the 
        United States, including tribal lands and colonias.
          (2) An estimate of the incidence and prevalence of 
        homelessness among individuals and families in rural areas and 
        rural communities of the United States.
          (3) An estimate of the number of individuals and families 
        from rural areas and rural communities who migrate annually to 
        non-rural areas and non-rural communities for homeless 
        assistance.
          (4) A description of barriers that individuals and families 
        in and from rural areas and rural communities encounter when 
        seeking to access homeless assistance programs, and 
        recommendations for removing such barriers.
          (5) A comparison of the rate of homelessness among 
        individuals and families in and from rural areas and rural 
        communities compared to the rate of homelessness among 
        individuals and families in and from non-rural areas and non-
        rural communities.
          (6) A general description of homeless assistance for 
        individuals and families in rural areas and rural communities 
        of the United States.
          (7) A description of barriers that homeless assistance 
        providers serving rural areas and rural communities encounter 
        when seeking to access Federal homeless assistance programs, 
        and recommendations for removing such barriers.
          (8) An assessment of the type and amount of Federal homeless 
        assistance funds awarded to organizations serving rural areas 
        and rural communities and a determination as to whether such 
        amount is proportional to the distribution of homeless 
        individuals and families in and from rural areas and rural 
        communities compared to homeless individuals and families in 
        non-rural areas and non-rural communities.
          (9) An assessment of the current roles of the Department of 
        Housing and Urban Development, the Department of Agriculture, 
        and other Federal departments and agencies in administering 
        homeless assistance programs in rural areas and rural 
        communities and recommendations for distributing Federal 
        responsibilities, including homeless assistance program 
        administration and grantmaking, among the departments and 
        agencies so that service organizations in rural areas and rural 
        communities are most effectively reached and supported.
  (b) Acquisition of Supporting Information.--In carrying out the study 
under this section, the Comptroller General shall seek to obtain views 
from the following persons:
          (1) The Secretary of Agriculture.
          (2) The Secretary of Housing and Urban Development.
          (3) The Secretary of Health and Human Services.
          (4) The Secretary of Education.
          (5) The Secretary of Labor.
          (6) The Secretary of Veterans Affairs.
          (7) The Executive Director of the United States Interagency 
        Council on Homelessness.
          (8) Project sponsors and recipients of homeless assistance 
        grants serving rural areas and rural communities.
          (9) Individuals and families in or from rural areas and rural 
        communities who have sought or are seeking Federal homeless 
        assistance services.
          (10) National advocacy organizations concerned with 
        homelessness, rural housing, and rural community development.
  (c) Effective Date.--This section shall take effect on the date of 
the enactment of this Act

               TITLE V--REPEALS AND CONFORMING AMENDMENTS

SEC. 501. REPEALS.

  Subtitles D, E, and F of title IV of the McKinney-Vento Homeless 
Assistance Act (42 U.S.C. 11391 et seq., 11401 et seq., and 11403 et 
seq.) are hereby repealed.

SEC. 502. CONFORMING AMENDMENTS.

  (a) Consolidated Plan.--Section 403(1) of the McKinney-Vento Homeless 
Assistance Act (as so redesignated by section 101(2) of this Act), is 
amended--
          (1) by striking ``current housing affordability strategy'' 
        and inserting ``consolidated plan''; and
          (2) by inserting before the comma the following: ``(referred 
        to in such section as a `comprehensive housing affordability 
        strategy')''.
  (b) Persons Experiencing Homelessness.--Section 103 of the McKinney-
Vento Homeless Assistance Act (42 U.S.C. 11302), as amended by the 
preceding provisions of this Act, is further amended by adding at the 
end the following new subsection:
  ``(e) Persons Experiencing Homelessness.--Any references in this Act 
to homeless individuals (including homeless persons) or homeless groups 
(including homeless persons) shall be considered to include, and to 
refer to, individuals experiencing homelessness or groups experiencing 
homelessness, respectively.''.
  (c) Rural Housing Stability Assistance.--Title IV of the McKinney-
Vento Homeless Assistance Act is amended by redesignating subtitle G 
(42 U.S.C. 11408 et seq.), as amended by the preceding provisions of 
this Act, as subtitle D.

SEC. 503. EFFECTIVE DATE.

  Except as specifically provided otherwise in this Act, this Act and 
the amendments made by this Act shall take effect on, and shall apply 
beginning on--
          (1) the expiration of the 18-month period beginning on the 
        date of the enactment of this Act, or
          (2) the expiration of the 3-month period beginning upon 
        publication by the Secretary of Housing and Urban Development 
        of final regulations pursuant to section 504,
whichever occurs first.

SEC. 504. REGULATIONS.

  (a) In General.--Not later than 12 months after the date of the 
enactment of this Act, the Secretary of Housing and Urban Development 
shall promulgate regulations governing the operation of the programs 
that are created or modified by this Act.
  (b) Effective Date.--This section shall take effect on the date of 
the enactment of this Act.

SEC. 505. AMENDMENT TO TABLE OF CONTENTS.

  The table of contents in section 101(b) of the McKinney-Vento 
Homeless Assistance Act (42 U.S.C. 11301 note) is amended by striking 
the item relating to the heading for title IV and all that follows 
through the item relating to section 492 and inserting the following 
new items:

                     ``TITLE IV--HOUSING ASSISTANCE

                    ``Subtitle A--General Provisions

``Sec. 401. Definitions.
``Sec. 402. Collaborative applicants.
``Sec. 403. Housing affordability strategy.
``Sec. 404. Preventing involuntary family separation
``Sec. 405. Technical assistance.
``Sec. 406. Discharge coordination policy.
``Sec. 407. Protection of personally identifying information by victim 
service providers.
``Sec. 408. Authorization of appropriations.

            ``Subtitle B--Emergency Solutions Grants Program

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

                ``Subtitle C--Continuum of Care Program

``Sec. 421. Purposes.
``Sec. 422. Continuum of care applications and grants.
``Sec. 423. Eligible activities.
``Sec. 424. Incentives for high-performing communities.
``Sec. 425. Supportive services.
``Sec. 426. Program requirements.
``Sec. 427. Selection criteria.
``Sec. 428. Allocation of amounts and incentives for specific eligible 
activities.
``Sec. 429. Renewal funding and terms of assistance for permanent 
housing.
``Sec. 430. Matching funding.
``Sec. 431. Appeal procedure.
``Sec. 432. Regulations.
``Sec. 433. Reports to Congress.

       `` Subtitle D--Rural Housing Stability Assistance Program

``Sec. 491. Rural housing stability grant program.
``Sec. 492. Use of FHMA inventory for transitional housing for homeless 
persons and for turnkey housing.''.

                          Purpose and Summary

    The purpose of H.R. 840, ``The Homeless Emergency 
Assistance and Rapid Transition to Housing Act of 2008'' is to 
consolidate and streamline the administration of homeless 
assistance grants under the housing provisions of McKinney-
Vento Homeless Assistance Act of 1987, to establish performance 
criteria for community homeless assistance planning boards 
authorized by the Act, to increase the portion of these grants 
available to fund activities to prevent homelessness, to expand 
the definition of homeless under the Act, to increase the 
flexibility of grantees to serve other precariously housed 
persons including children and families defined as homeless 
under other provisions of the Act and other federal statutes, 
to provide reliable funding for the renewal of homeless 
assistance grants to fund rental assistance and operating 
subsidies to permanent supportive housing, and to increase the 
likelihood of rural communities receiving an appropriate share 
of homeless assistance under the Act and the flexibility these 
communities have in using these funds to reflect the nature of 
homelessness and worst case housing needs in rural areas.

                  Background and Need for Legislation


                               BACKGROUND

    In the 1980s, Congress first responded to the growing 
prevalence of homelessness with several separate grant programs 
designed to address the food and shelter needs of homeless 
individuals. In 1987, Congress enacted the Stewart B. McKinney 
Homeless Assistance Act, which created a number of new programs 
to comprehensively address the needs of homeless people, 
including food, shelter, health care, and education (P.L. 100-
77). The act was later renamed the McKinney-Vento Homeless 
Assistance Act (P.L. 106-400). Among the programs authorized in 
the McKinney Act were four types of grants to provide housing 
and related assistance to homeless persons: the Emergency 
Shelter Grants (ESG) program, the Supportive Housing 
Demonstration program, the Supplemental Assistance for 
Facilities to Assist the Homeless (SAFAH) program, and the 
Section 8 Moderate Rehabilitation Assistance for Single Room 
Occupancy Dwellings Single Room Occupancy (SRO) program. These 
four programs, administered by the U.S. Department of Housing 
and Urban Development (HUD), were created to provide temporary 
and permanent housing to homeless persons, along with 
supportive services. In 1992, Congress created an additional 
program, Shelter Plus Care, specifically targeted to the 
creation of permanent supportive housing for disabled homeless 
individuals, including persons with chronic alcohol and 
substance abuse problems. Congress also authorized the Rural 
Homeless Housing Assistance program, but it was never funded. 
Meanwhile, the SAFAH program ceased receiving appropriations in 
fiscal year 1992. HUD currently administers four existing grant 
programs under the housing provisions of the McKinney-Vento 
Act: the ESG program, the Supportive Housing Program (SHP), the 
Shelter Plus Care program (SPC), and the SRO program.
    HUD has taken on an increasing responsibility relative to 
Con- gress in the distribution and administration of homeless 
assistance grants since enactment of the McKinney-Vento Act. 
From fiscal year 1987 to fiscal year 1994, Congress 
appropriated funds separately for each of the four programs. 
Beginning in fiscal year 1995 and continuing to the present, 
Congress has appropriated one lump sum for all four programs, 
and HUD has then determined how those funds are distributed 
among the ESG, SHP, SPC, and SRO programs.
    HUD distributes ESG grants on a formula basis to 
communities nationwide. HUD has historically allocated between 
10 percent and 15 percent of the annual homeless assistance 
appropriation which was $1.586 billion in fiscal year 2008, to 
ESG. This ratio approximates the proportion of funds Congress 
targeted to the program in fiscal year 1994, the final year in 
which funds were appropriated separately to each authorized 
program under the Act. Since fiscal year 1995, HUD has 
distributed the SHP, SPC, and SRO funds through a competitive 
process called the Continuum of Care. Through the Continuum of 
Care process, stakeholders from local community organizations 
and government work collaboratively to develop an analysis of 
the gaps and needs for homeless programs in their region. By 
means of a locally-constructed decision-making process, a 
Continuum then prioritizes projects in the community that 
should receive funding from the competitive grants and submits 
a unified application to HUD. HUD uses a multi-step process to 
select individual projects for funding. This process is based 
partly on a formula, based on the CDBG formula, to determine a 
community's need. HUD also assigns points for various 
application elements, which in recent years has included the 
existence of an inclusive community process to develop a 
Continuum of Care's strategy; a fair and impartial local 
project review and selection process; the existence of a 
strategy to address all aspects of homelessness and all 
populations in need of services; implementation of a Homeless 
Management Information System (HMIS) to track grantee 
performance and provide an unduplicated count of the homeless; 
the existence of within a continuum of care of a ten-year plan 
to end chronic homelessness and discharge policies for persons 
leaving institutional care; demonstrated success in meeting 
performance benchmarks, including increasing the number of 
permanent housing beds for the chronically homeless; decreasing 
chronic homelessness, increasing residential stability of 
homeless persons in permanent housing; enabling homeless 
individuals to gain employment and access to available 
government programs and funds; employing homeless, low- and 
very low-income persons in funded projects, and removing local 
regulatory barriers to affordable housing; and the proposed 
allocation of funding within the Continuum of Care to housing 
activities relative to supportive services activities.
    Research on the effectiveness of particular strategies has 
led to significant policy shifts in McKinney-Vento programs. In 
the 1990's, studies conducted in Philadelphia and New York City 
found that a small group of homeless adults--about 20 percent 
of the total homeless population--stayed homeless for long 
periods of time or cycled in and out of hospitals, jails, or 
other institutions; had high rates of disabilities; and 
utilized a disproportionate share of the homeless assistance 
resources. Further research in New York City found that moving 
this group of chronically homeless adults into permanent 
supportive housing--housing with intensive supportive services 
attached--not only was successful in ending their homelessness, 
but was also cost effective, as it dramatically reduced the 
costs to public systems. Subsequent studies in numerous other 
communities have supported these findings, and have concluded 
that the overall governmental net cost of providing permanent 
supportive housing is even less than the cost of allowing 
chronically homeless people to remain homeless.
    Based on these findings, Congress and HUD initiated efforts 
to create more permanent supportive housing to end chronic 
homelessness. The bipartisan Millennial Housing Commission and 
the New Freedom Commission on Mental Health estimated that 
approximately 150,000 new units of permanent supportive housing 
were needed to achieve this goal. Beginning in fiscal year 
1999, Congress steadily increased appropriations for McKinney-
Vento housing programs and targeted much of the increase 
towards efforts to end chronic homelessness. These efforts were 
supplemented by numerous state and locally driven initiatives. 
As a result, several cities have reported significant 
reductions in the number of people who are chronically homeless 
and the number of people who live on the streets or in places 
not meant for human habitation.
    While chronic homelessness was receiving much of the 
attention in the early part of this decade, several cities were 
using a new approach to address family homelessness that 
focused on rapid rehousing of homeless families. These 
communities have programs that work with families to quickly 
identify and help them move into permanent housing and provide 
short-term rental assistance, assistance with other housing 
costs, and follow-up services to help families achieve long 
term housing stability and self-sufficiency. This strategy has 
led to significant declines in homelessness among families in 
several communities, most notably in Hennepin County, 
Minnesota, where the average nightly census in the homeless 
shelter declined by almost two-thirds.
    Over the last several years, there have been a number of 
other developments in serving homeless people, most notably a 
focus on the importance of acquiring data. In early 2000, 
Congress required HUD to work with communities to develop 
homeless management information systems (HMIS) to assess the 
number of homeless people, how those who are homeless interact 
with the homeless system, and which programs are effective for 
preventing or ending homelessness. Communities are in various 
stages of implementation of HMIS--many have functional systems 
while others are in still in the developmental stages. HUD 
recently published the third Annual Homeless Assessment Report 
(AHAR), which estimated that 1.6 million people used emergency 
shelters (not including domestic violence shelters) or 
transitional housing over the course of one year.
    Beginning in 2001, communities began developing ten-year 
plans to end homelessness. These plans brought together 
nonprofit providers, advocates, the business and faith-based 
communities, and city and local government officials to design 
strategies for preventing and ending homelessness. More than 
200 plans have been completed to date, and over 100 more are in 
the process of being completed. The purpose of these plans is 
to identify and implement the most efficient and effective 
strategies for preventing and ending homelessness in the 
community using the best available data.
    Based on counts performed in nearly every community in the 
nation on a single night in January, 2007 and reported in the 
Third Annual Homeless Assessment Report to Congress, 
approximately 672,000 people were homeless, living in an 
emergency shelter, transitional housing, or a place not meant 
for human habitation. Thirty-seven percent (249,000) were 
members of families with children and 42 percent were 
unsheltered, living on the streets, in abandoned buildings, or 
in other places not meant for human habitation. Approximately 
154,000 were veterans, and 124,000 were chronically homeless--
spending long periods of time homeless or cycling between 
housing, homelessness and other institutional care, such as 
psychiatric hospitals and corrections. Based on data gathered 
from selected areas over the course of a year, an estimated 1.6 
million people resided in emergency shelters or transitional 
housing for at least part of the year. That figure does not 
include people who were not in emergency shelter or 
transitional housing but were unsheltered or in a domestic 
violence shelter during part of that year.

                           PROGRAM STRUCTURE

    There is widespread consensus among advocates for the 
homeless, grant recipients, state and local government 
officials, and HUD itself that the three competitive grant 
programs under the Act--SHP, SPC, and SRO--should be 
consolidated in light of their overlapping purposes and 
eligible activities. Stakeholders agree similarly that the 
Continuum of Care distribution process for HUD homeless 
assistance should rest on firmer legislative footing: Since 
fiscal year 1995, this complex and multi-faceted application 
process has evolved almost entirely through annual Notices of 
Funding Availability, with limited Congressional input and 
oversight.
    This bill achieves the goal of program consolidation and 
statutory codification of the Continuum of Care planning and 
distribution process. Specifically, the bill defines the duties 
of a Collaborative Applicant to design a collaborative process 
to apply for funding, evaluate outcomes, determine compliance, 
and establish funding priorities within the newly created 
Continuum of Care program that replaces the SHP, SPC, and SRO 
programs. Collaborative Applicants must participate in the 
Consolidated Plan for HUD's mainstream housing and community 
development programs; ensure participation in Homeless 
Management Information Systems (HMIS), collect unduplicated 
counts of homeless people, analyze patterns of program use, 
determine needs, and operate in accordance with data protection 
and confidentiality standards developed by the Secretary; and 
certify that covered areas are not criminalizing homelessness. 
Differing match requirements are unified into a single 25 
percent match requirement with the exception of grants for 
leasing which are not subject to any matching requirement. 
Incentives are included to promote strategies that have been 
proven to prevent and end homelessness. Communities are 
rewarded for demonstrating progress.
    The Emergency Shelter Grants program is renamed the 
Emergency Solutions Grants program, and it would increase the 
role of city and state governments in preventing and ending 
homelessness and ensure that more resources are used for 
preventing homelessness.
    The Committee recognizes that homeless assistance systems 
in rural areas function differently than those in urban areas. 
The legislation would give rural applicants the option of 
applying for a specially designed rural program that focuses 
much more on prevention and is easier to integrate with 
existing systems. The legislation also simplifies the 
application process for rural programs.
    The legislation outlines a simple application process that 
will reduce the amount of time and energy communities spend on 
applying for funds and increase the amount of resources they 
spend developing and implementing strategies that prevent and 
end homelessness. The process for rural applicants is even 
simpler and recognizes the unique characteristics of rural 
homeless assistance. The legislation also utilizes selection 
criteria that are based on ten year plans that communities are 
creating. Communities will be able to integrate their ten year 
plans with their homeless assistance applications.

                               INCENTIVES

    The legislation continues the strategies that have worked 
to reduce chronic homelessness while creating similar 
incentives for preventing and ending homelessness for families 
with children. It adds families with children to the definition 
of chronic homelessness. It also promotes rapid rehousing 
strategies for homeless families.
    The legislation provides communities and providers with 
more flexibility than existing homeless assistance programs. To 
ensure that programs are achieving their goals, the legislation 
includes several features to encourage better performance. In 
addition to including explicit performance-based criteria in 
the application process, the legislation directs HUD to provide 
incentives for permanent supportive housing for chronically 
homeless individuals and families and rapid rehousing programs 
for homeless families. Both of these strategies have been 
proven to reduce homelessness and should be expanded. 
Additional incentives can be added based on research and public 
comment. The legislation also rewards communities that 
demonstrably reduce homelessness by providing them with 
additional flexibility in how they use their funds. That 
flexibility can continue for as long as the community makes 
progress. The legislation continues Congress's long standing 
support for ensuring that at least 30 percent of funding be 
used for permanent housing for people with disabilities.

                         DEFINING HOMELESSNESS

    The Committee acknowledges disagreement among its members, 
homeless advocates, providers, researchers, and government 
officials over the definition of homelessness. Some advocates 
and providers urged the Committee to modify the definition of 
homelessness to more closely match it with the one used by the 
Department of Education by including people who are sharing the 
housing of others because of a loss of housing or economic 
hardship and people who live in a hotel or motel that they pay 
for because of a lack of alternative accommodations. (People 
living in hotels or motels paid for by a government agency or 
charitable organization are already considered homeless.) 
Others urged the Committee to maintain HUD's existing 
definition of homelessness. Proponents of a definition similar 
to the Department of Education's definition argued that 
families with children are more likely to live doubled up or in 
a motel and that people considered as homeless by other federal 
programs should also be considered homeless by HUD. They also 
argued that the temporary, unstable or unsafe arrangements 
these children, youth, and their families live in provide less 
stability than an emergency shelter. Proponents of keeping 
HUD's existing definition of homelessness argued that there are 
substantive differences between people without shelter--or who 
would lack shelter absent the emergency shelter or transitional 
housing in which they reside--and people living doubled up or 
in motels, and that limited homeless assistance resources are 
appropriately targeted to people who literally do not have a 
roof over their head or live in emergency shelters or 
transitional housing.
    This legislation expands the definition of homelessness by 
including people who will have to leave their current living 
situation in the next 14 days and have no other place to live. 
HUD currently uses a standard of 7 days, although that is not 
specified in statute. It also clarifies that people who are 
fleeing or attempting to flee domestic violence and have no 
other place to go are considered homeless.
    In addition, the legislation provides more resources to 
serve people who are not currently defined by HUD as homeless. 
Emergency Solutions Grants funding authorizes 20 percent of 
annual funding for emergency shelters and for prevention and 
rapid rehousing that can serve people who are homeless or at 
risk of homelessness, including people living doubled up, in 
motels or in other precarious situations. This includes anyone 
considered homeless under other federal programs. Communities 
must spend a minimum of half of Emergency Solutions Grants 
funding (10 percent of annual funding) on prevention and rapid 
rehousing. This compares to one-third of annual funding for 
Emergency Shelter Grants--approximately 3 percent of annual 
funding--that communities may currently use for prevention 
efforts to serve these populations.
    Further, recipients could use up to 10 percent of their 
Continuum of Care program funding to serve families or 
unaccompanied youth who are homeless under other federal 
programs, provided that they are addressing people with the 
most significant barriers to living independently. Communities 
with low levels of homelessness could use an unlimited amount 
to serve these groups. Under the rural program, grant 
recipients could serve people who are homeless or at risk of 
homelessness.
    The bill includes an authorization for a GAO report to 
study the issue of the definition of ``homeless.'' During 
markup members also committed to expediting this request for a 
GAO study, but sending a separate letter to GAO making that 
request.
    Thus, while the bill does not adopt the Education 
Department's definition of homeless, it includes a number of 
significant provisions to address the concerns of advocates of 
utilizing such definition. First, the definition of homeless 
has been expanded modestly, to include a number of changes to 
related to when a family or individual is going to become 
imminently homeless. Second, instead of the current practice of 
providing 10 percent of McKinney Grants for Emergency Shelter 
Grants, the bill authorizes 20 percent of such funds for 
Emergency Solutions, providing a significant expansion of funds 
that can be used to assist families with children in doubled up 
housing. Third, the bill explicitly permits up to 10 percent of 
funds under each local Continuum of Care to be used to serve 
families defined as homeless under the Education Department 
Definition, but not under the HUD definition. Fourth, in areas 
of low levels of homelessness, such flexibility to serve 
families defined as homeless under the Education Department 
Definition, but not under the HUD definition applies to 100 
percent of CoC funds. Fifth, rural areas which receive funding 
under the Rural Housing Stabilization Program may use funds 
flexibility to serve such families without limitation. And, 
finally, as noted a GAO study will go forward on the issue of 
the definition.
    As a result, enactment of the bill will provide significant 
new funding opportunities to serve needy families with children 
living in doubled up housing that are not currently permitted. 
Implementation of these changes in the next funding NOFA, 
combined with the results of the GAO study, provide the 
opportunity to review over the next few years the effects of 
these changes and make whatever changes in funding flexibility 
rules or the statutory definition that are warranted.

                                RESEARCH

    The Committee has authorized funds for the Secretary to 
conduct research on the effectiveness of various interventions 
for homeless families. There is an extensive homeless 
assistance system available to families who experience 
homelessness. This system is made up of emergency shelters, 
transitional housing, and a small number of permanent 
supportive housing units; many of these housing models are 
accompanied by services and supports aimed at helping families 
exit homelessness and make improvement in their lives. Homeless 
families are also eligible for mainstream housing and services 
such as housing vouchers and homeless prevention assistance. 
One of the biggest challenges facing policymakers and homeless 
service providers is to identify which housing and service 
models lead to housing stability and are most cost-effective.

                                Hearings

    The Committee on Financial Services held the first of two 
days of hearings entitled ``The Reauthorization of the 
McKinney-Vento Homeless Assistance Act'' on October 4, 2007. 
The following witnesses testified:

                               PANEL ONE

     The Honorable Jack Reed, United States Senator
     The Honorable Wayne Allard, United States Senator

                               PANEL TWO

     The Honorable John McKinney, Senator, State of 
Connecticut
     Ms. Maria Foscarinis, Executive Director, National 
Law Center on Homelessness and Poverty
     Ms. Deborah DeSantis, President and Chief 
Executive Officer, Corporation for Supportive Housing
     Ms. Barbara Anderson, Executive Director, Haven 
House Services
     Ms. Pittre Walker, Homeless Liaison, Caddo Parish 
School Board

                              PANEL THREE

     Ms. Amy Weintraub, Executive Director, The 
Covenant House, Charleston, WV
     Ms. Jessica Vasquez, Executive Director, New York 
State Coalition Against Domestic Violence
     Ms. Linda M. Young, Executive Director, Welcome 
House of Northern Kentucky
     Mr. Jeremy Rosen, Executive Director, National 
Policy and Advocacy Council on Homelessness
    On October 16, 2007, the Subcommittee on Housing and 
Community Opportunity held a second day of hearing. The 
following witnesses testified:

                               PANEL ONE

     Mr. Mark Johnston, Deputy Assistant Secretary for 
Special Needs, U.S. Department of Housing and Urban Development
     Mr. Philip Mangano, Executive Director, United 
States Interagency Council on Homelessness
     Mr. Zev Yaroslavsky, Member, Board of Supervisors, 
Los Angeles County

                               PANEL TWO

     Dr. Dennis Culhane, Ph.D., Professor of Social 
Policy and Practice, University of Pennsylvania
     Ms. Mercedes Marquez, General Manager, Los Angeles 
Housing Department, City of Los Angeles
     Ms. Arlene McNamee, Executive Director, Catholic 
Social Services, Diocese of Fall River, Massachusetts
     Dr. Jamie Van Leeuwen, Ph.D., Project Manager for 
Denver's Road Home, City and County of Denver
     Ms. Elizabeth Gomez, Executive Director, Los 
Angeles Youth Network
     Ms. Nan Roman, President, National Alliance to End 
Homelessness

                              PANEL THREE

     Ms. Dora Gallo, A Community of Friends, Los 
Angeles
     Mr. Moises Loza, Executive Director, Housing 
Assistance Council
     Dr. Ellen Bassuk, M.D., Associate Professor of 
Psychiatry, Harvard University; President, National Center on 
Family Homelessness
     Ms. Diane Nilan, HEAR US, Naperville, Illinois
     Ms. Nancy Carter, National Alliance for the 
Mentally Ill Urban Los Angeles
     Dr. Martha Burt, Ph.D. Senior Principal 
Researcher, Urban Institute

                        Committee Consideration

    The Committee on Financial Services met in open session on 
July 31, 2008, and ordered H.R. 840, the ``Homeless Emergency 
Assistance and Rapid Transition to Housing Act'', as amended, 
favorably reported by a voice vote.

                            Committee Votes

    Clause 3(b) of rule XIII of the Rules of the House of 
Representatives requires the Committee to list the record votes 
on the motion to report legislation and amendments thereto. No 
record votes were taken with in conjunction with the 
consideration of this legislation. A motion by Mr. Frank to 
report the bill, as amended, to the House with a favorable 
recommendation was agreed to by a voice vote.
    During the consideration of the bill, the following 
amendments were considered:
    An amendment in the nature of a substitute by Ms. Moore 
(WI) and Ms. Waters, No. 1, was agreed to by voice vote.
    An amendment by Mr. Foster and Mr. Ellison, No. 1a, 
clarification of effect on other laws, was agreed to by voice 
vote.
    An amendment by Mr. Ellison and Mr. Foster, No. 1b, 
requiring a GAO study, was agreed to by voice vote.
    An amendment by Mr. Frank, No. 1c, a technical and 
conforming amendment, was agreed to by voice vote.
    An amendment by Ms. Waters and Mr. Hinojosa, No. 1d, 
regarding at risk homelessness, was agreed to by voice vote.
    An amendment by Mrs. Biggert and Mr. Davis (KY), No. 1e, 
regarding the definition of homelessness, was offered and 
withdrawn.

                      Committee Oversight Findings

    Pursuant to clause 3(c)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee has held hearings and 
made findings that are reflected in this report.

                    Performance Goals and Objectives

    Pursuant to clause 3(c)(4) of rule XIII of the Rules of the 
House of Representatives, the Committee establishes the 
following performance related goals and objectives for this 
legislation:
    The purpose of H.R. 840 is to consolidate and streamline 
the administration of homeless assistance grants under the 
housing provisions of McKinney-Vento Homeless Assistance Act of 
1987, to establish performance criteria for community homeless 
assistance planning boards authorized by the Act, to increase 
the portion of these grants available to fund activities to 
prevent homelessness, to expand the definition of homeless 
under the Act, to increase the flexibility of grantees to serve 
other precariously housed persons including children and 
families defined as homeless under other provisions of the Act 
and other federal statutes, to provide reliable funding for the 
renewal of homeless assistance grants to fund rental assistance 
and operating subsidies to permanent supportive housing, and to 
increase the likelihood of rural communities receiving an 
appropriate share of homeless assistance under the Act and the 
flexibility these communities have in using these funds to 
reflect the nature of homelessness and worst case housing needs 
in rural areas.

   New Budget Authority, Entitlement Authority, and Tax Expenditures

    In compliance with clause 3(c)(2) of rule XIII of the Rules 
of the House of Representatives, the Committee adopts as its 
own the estimate of new budget authority, entitlement 
authority, or tax expenditures or revenues contained in the 
cost estimate prepared by the Director of the Congressional 
Budget Office pursuant to section 402 of the Congressional 
Budget Act of 1974.

                        Committee Cost Estimate

    The Committee adopts as its own the cost estimate prepared 
by the Director of the Congressional Budget Office pursuant to 
section 402 of the Congressional Budget Act of 1974.

                  Congressional Budget Office Estimate

    Pursuant to clause 3(c)(3) of rule XIII of the Rules of the 
House of Representatives, the following is the cost estimate 
provided by the Congressional Budget Office pursuant to section 
402 of the Congressional Budget Act of 1974:

                                     U.S. Congress,
                               Congressional Budget Office,
                                 Washington, DC, September 8, 2008.
Hon. Barney Frank,
Chairman, Committee on Financial Services,
House of Representatives, Washington, DC.
    Dear Mr. Chairman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 840, the Homeless 
Emergency Assistance and Rapid Transition to Housing Act of 
2008.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Chad Chirico.
            Sincerely,
                                          Peter H. Fontaine
                                   (For Peter R. Orszag, Director).
    Enclosure.

H.R. 840--Homeless Emergency Assistance and Rapid Transition to Housing 
        Act of 2008

    Summary: H.R. 840 would reauthorize the McKinney-Vento 
Homeless Assistance Act for four years and consolidate the 
act's separate competitive grant programs for assistance to the 
homeless into a single program.
    CBO estimates that implementing this legislation would cost 
about $3.4 billion over the next five years, assuming the 
appropriation of the necessary amounts. Enacting H.R. 840 would 
not affect direct spending or revenues.
    H.R. 840 contains no intergovernmental or private-sector 
mandates as defined in the Unfunded Mandates Reform Act (UMRA); 
any costs state, local, or tribal governments incur to comply 
with grant conditions would be incurred voluntarily.
    Estimated cost to the Federal Government: The estimated 
budgetary impact of H.R. 840 is shown in the following table. 
The costs of this legislation fall within budget function 600 
(income security).

                                      ESTIMATED BUDGETARY EFFECTS OF H.R. 840
----------------------------------------------------------------------------------------------------------------
                                                                    By fiscal year in millions of dollars--
                                                              --------------------------------------------------
                                                                2009    2010    2011    2012    2013   2009-2013
----------------------------------------------------------------------------------------------------------------
                                  CHANGES IN SPENDING SUBJECT TO APPROPRIATION

Homeless Assistance Grants:
    Estimated Authorization Level............................       0   2,200   2,240   2,281   2,321     9,042
    Estimated Outlays........................................       0      22     374   1,261   1,680     3,337
Research on Interventions for Homeless Families:
    Authorization Level......................................       0       8       8       8       8        32
    Estimated Outlays........................................       0       3       5       8       8        24
Interagency Council on Homelessness:
    Estimated Authorization Level............................       3       3       3       3       3        15
    Estimated Outlays........................................       3       3       3       3       3        15
    Total Proposed Changes:
        Estimated Authorization Level........................       3   2,211   2,251   2,292   2,332     9,089
        Estimated Outlays....................................       3      28     382   1,272   1,691     3,376
----------------------------------------------------------------------------------------------------------------

    Basis of estimate: For this estimate, CBO assumes that H.R. 
840 will be enacted near the beginning of fiscal year 2009, 
that the amounts authorized will be appropriated, and that 
outlays will follow historical patterns. Components of the 
estimated costs are described below.

Homeless assistance grants

    H.R. 840 would consolidate the Department of Housing and 
Urban Development's separate competitive grant programs for 
assistance to the homeless (including the Supportive Housing 
Program, the Shelter Plus Care program, and the Single-Room 
Occupancy Dwellings program) into a single program to be called 
the Continuum of Care Program. Additionally, the bill would 
reauthorize grants for the emergency shelter needs of the 
homeless. Section 105 of the bill would authorize the 
appropriation of $2.2 billion in 2010 and such sums as 
necessary from 2011 through 2013 for those programs. Assuming 
appropriation of the authorized amounts and adjusting for 
inflation, CBO estimates that implementing this section would 
cost $3.3 billion over the 2010-2013 period.

Other Provisions

    Section 4 would authorize the appropriation of $3 million 
in 2009 and such sums as necessary from 2010 through 2013 for 
the U.S. Interagency Council on Homelessness, and section 306 
would authorize the appropriation of $8 million for each of 
fiscal years 2010 through 2013 for research into the efficacy 
of interventions for homeless families. In total, assuming 
appropriation of the authorized amounts, CBO estimates that 
implementing those provisions would cost $3 million in 2009 and 
$39 million over the 2009-2013 period.
    Intergovernmental and private-sector impact: H.R. 840 
contains no intergovernmental or private-sector mandates as 
defined in UMRA. Funding and program activities authorized in 
the bill would benefit state, local, and tribal governments 
that participate in housing assistance programs. Any costs 
those governments incur to comply with grant conditions would 
be incurred voluntarily.
    Previous CBO estimate: On October 9, 2007, CBO transmitted 
a cost estimate for S. 1518, the Community Partnership to End 
Homelessness Act of 2007, as ordered reported by the Senate 
Committee on Banking, Housing, and Urban Affairs on September 
19, 2007. CBO estimated that S. 1518 would cost $7.7 billion 
over five years, assuming appropriation of the necessary 
amounts. The Joint Committee on Taxation estimated that S. 1518 
would reduce revenues by $22 million over 10 years, while H.R. 
840 would not affect revenues. Differences in discretionary 
costs reflect differences in the authorizations.
    Estimate prepared by: Federal Spending: Chad Chirico; 
Impact on State, Local, and Tribal Governments: Lisa Ramirez-
Branum; Impact on the Private Sector: Patrick Bernhardt.
    Estimate approved by: Keith Fontenot, Deputy Assistant 
Director for Health and Human Resources, Budget Analysis 
Division.

                       Federal Mandates Statement

    The Committee adopts as its own the estimate of Federal 
mandates prepared by the Director of the Congressional Budget 
Office pursuant to section 423 of the Unfunded Mandates Reform 
Act.

                      Advisory Committee Statement

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

                   Constitutional Authority Statement

    Pursuant to clause 3(d)(1) of rule XIII of the Rules of the 
House of Representatives, the Committee finds that the 
Constitutional Authority of Congress to enact this legislation 
is provided by Article 1, section 8, clause 1 (relating to the 
general welfare of the United States) and clause 3 (relating to 
the power to regulate interstate commerce).

                  Applicability to Legislative Branch

    The Committee finds that the legislation does not relate to 
the terms and conditions of employment or access to public 
services or accommodations within the meaning of section 
102(b)(3) of the Congressional Accountability Act.

                         Earmark Identification

    H.R. 840 does not contain any congressional earmarks, 
limited tax benefits, or limited tariff benefits as defined in 
clause 9 of rule XXI.

             Section-by-Section Analysis of the Legislation

    Sec. 1--Short Title; Table of Contents. The short title is 
the ``Homeless Emergency Assistance and Rapid Transition to 
Housing Act of 2008''.
    Sec. 2--Findings and Purpose. Describes findings and 
purpose of the HEARTH Act. The findings are that lack of 
affordable housing and housing assistance cause homelessness 
and that homelessness affects rural, suburban and urban 
communities. The purposes of the HEARTH Act are to consolidate 
homeless assistance programs, codify the continuum of care 
planning process, and establish a goal of ensuring that 
families who become homeless return to permanent housing within 
30 days.
    Sec. 3--Definition of Homelessness. Modifies the statutory 
definition of homelessness to also include the following 
situations:
           People who lived in a shelter or a place not 
        meant for human habitation prior to temporarily 
        residing in an institutional care setting would be 
        homeless upon their exit;
           People who will imminently lose their 
        housing and lack the resources and support networks 
        needed to find other housing, including those who are 
        being evicted within 14 days, people living in a hotel 
        or motel and lack the resources to stay for more than 
        14 days, people who are doubled up and must leave 
        within 14 days; and
           People who are fleeing or attempting to flee 
        domestic violence.
    Sec. 4--U.S. Interagency Council on Homelessness. Makes a 
number of changes to the membership, role and operation of the 
Interagency Council on Homelessness.
    (1) Identifies the mission of the Interagency Council: ``to 
coordinate the federal response to homelessness and to create a 
national partnership at every level of government and with the 
private sector to reduce and end homelessness in the nation 
while maximizing the effectiveness of the Federal Government in 
contributing to the end of homelessness.''
    (2) Requires that the Chair of the Interagency Council to 
oversee the Interagency Council. Adds the heads of the 
following agencies or their designees to the Interagency 
Council: Social Security Administration, Department of Justice, 
OMB, Office of Faith-Based and Community Initiatives, USA 
Freedom Corps, and Internal Revenue Service. It requires the 
Council to meet at least four times a year, instead of once a 
year. It also requires the Executive Director of the Council to 
report to the Director of the Domestic Policy Council.
    (3) Changes the number of regional coordinators under the 
Interagency Council from 2-5 to 5-10 to match the number of 
federal regions, and also adds to the functions of the 
Interagency Council the following:
           Develop a National Strategic Plan to End 
        Homelessness no later than one year after enactment and 
        update that plan annually;
           Encourage the creation of state interagency 
        councils and the formulation of 10-year plans to end 
        homelessness at state, city, and county levels;
           Obtain information from federal agencies 
        about resources for which homeless people are eligible 
        and improvements to accessing these resources; develop 
        mechanisms to ensure that homeless people can access 
        federal, state, and local programs for which they are 
        eligible and verify collaboration within communities;
           Conduct research and evaluation related to 
        its functions;
           Develop joint federal agency and other 
        initiatives;
           Participate in federal agency policy 
        development and federal funding competitions;
           Develop constructive alternatives to 
        criminalizing homelessness.
    (4) Adds to the authority of the Interagency Council the 
establishment of a national advisory panel consisting of 
experts in policy and practice from the public and private 
sector, including consumers.
    (5) Current statute requires an annual report to Congress 
by each member of the council. The HEARTH Act would require 
each agency to describe efforts to prevent homelessness in 
those reports.
    (6) Makes the appointment of the Executive Director subject 
to Senate Confirmation and increases the position's pay rate 
from level V of the Executive Schedule to the maximum of Senior 
Executive Service.
    (7) Current statute allows the Council to accept, use, and 
dispose of property as a donation. The HEARTH Act clarifies 
that the Council may accept property, ``both real and personal, 
public and private, without fiscal year limitation, for the 
purpose of aiding or facilitating the work of the Council.''
    (8) Authorizes $3 million for the Interagency Council on 
Homelessness for fiscal year 2009 and such sums as may be 
necessary for fiscal years 2010-2013, and makes appropriated 
amounts available until expended.
    Title I--Housing Assistance General Provisions.
    Sec. 101--Definitions. The following definitions are added 
or modified:
    (1) The definition of ``at risk of homelessness'' would 
include people who have incomes below 30 percent of area 
median, insufficient resources to obtain housing stability, and 
live in an unstable or risky situation, including moving 
frequently, living in the housing of others, facing eviction, 
living in a hotel or motel, living in severely overcrowded 
housing, or exiting an institution. This category specifically 
includes all families with children and youth defined as 
homeless under other federal statutes.
    (2) The definition of ``chronic homelessness'' would 
include individuals and families who--
           reside in a place not meant for human 
        habitation, an emergency shelter, or a safe haven;
           either have been homeless in one of those 
        places for the past year or four times in the past 
        three years;
           have a disabling condition (for families, 
        head of household has a disabling condition), including 
        a substance use disorder, serious mental illness, 
        developmental disability, post traumatic stress 
        disorder, brain injury, or chronic physical illness or 
        disability.
    This definition is similar to the definition included in 
existing HUD guidance except that it includes families with 
children, specifies that people residing in safe havens are 
eligible, and adds post traumatic stress disorder and brain 
injury to the qualifying disabling conditions.
    The chronic homelessness definition also states that people 
who are chronically homeless prior to entering an institution 
for up to 90 days continue to be chronically homeless upon 
their exit.
    (3), (4) The terms Collaborative Applicant and 
Collaborative Application are defined. A Collaborative 
Applicant is the entity within a community that submits a joint 
application on behalf of all the applicants for funding in the 
community.
    (7) The term ``families with children and youth defined as 
homeless under other federal statutes'' is defined to mean any 
children or youth that are defined as `homeless' under any 
federal statute other than the HUD subtitle of the McKinney-
Vento Act, but are not defined as homeless under subparagraph 
103, and also includes the parent, parents, or guardian of 
children or youth defined as homeless under the education 
provisions of the McKinney-Vento Act, Title VII, Subtitle B (42 
U.S.C. 11434(a)).
    (9) The definition of a ``Homeless Individual with a 
Disability'' would be modified to explicitly include people 
with post traumatic stress disorder or brain injuries.
    (13) The term ``operating cost'' means expenses incurred 
with respect to A) administration, maintenance, repair, and 
security of housing, B) utilities, fuel, furnishings, and 
equipment for housing, and C) coordination of services as 
needed to ensure long-term housing stability.
    (16) ``Personally Identifying Information'' includes name, 
address, contact information, social security number, and other 
information that could be used to identify an individual.
    (30) ``Unified funding agency'' means a collaborative 
applicant that receives grants from HUD and distributes them to 
individual recipients in the community.
    (32), (33) ``Victim service provider'' and ``victim 
services'' are defined. A victim service provider is a 
nonprofit organization whose primary mission is to provide 
services such as those provided by rape crisis centers and 
domestic violence shelters to victims of domestic violence, 
dating violence, sexual assault, or stalking.
    The section also defines the terms consolidated plan, 
eligible entity, geographic area, legal entity, metropolitan 
city, urban county, nonentitlement area, new, outpatient health 
services, permanent housing, private nonprofit organization, 
project, project-based, project sponsor, recipient, Secretary, 
serious mental illness, solo applicant, sponsor based, state, 
supportive services, and tenant-based.
    Sec. 102--Community Homeless Assistance Planning Boards. A 
new section (402) is added that describes the nature and role 
of Collaborative Applicants.
    (a) Collaborative Applicants are established by the 
relevant parties in a geographic area to submit an application 
for funding.
    (b) Collaborative Applicants do not necessarily have to be 
legal entities.
    (c) If there is no Collaborative Applicant in a geographic 
area, or if the Collaborative Applicant for that area is not 
performing its duties, the HUD Secretary may take remedial 
action, which could include appointing a Collaborative 
Applicant or allowing organizations to apply for grants 
directly.
    (d) This section does not override other conflict of 
interest or government fair practice laws.
    (e) The collaborative applicant may designate an agent to 
apply for and receive grants and perform other administrative 
duties.
    (f) Duties.
    (1) Design a collaborative process to apply for funding, 
evaluate outcomes, determine compliance, and establish funding 
priorities;
    (2) Participate in the Consolidated Plan;
    (3) Ensure participation in Homeless Management Information 
Systems (HMIS) to collect unduplicated counts of homeless 
people, analyze patterns of program use, determine needs, and 
operate in accordance with data protection and confidentiality 
standards developed by the Secretary;
    (4) Certify as to whether the jurisdictions representing 
the areas covered by the Collaborative Applicant are 
criminalizing homelessness.
    (g) Unified Funding.
    (1) Under certain conditions, a Collaborative Applicant may 
be the grantee for funding with the responsibility to 
distribute funding to project sponsors. Collaborative 
Applicants that qualify for this responsibility are known as 
Unified Funding Agencies. The conditions under which this may 
occur are,
    (A) the Collaborative Applicant successfully applies to be 
a Unified Funding Agency, or
    (B) HUD designates the Collaborative Applicant as a Unified 
Funding Agency after finding that the Collaborative Applicant 
has the capacity to perform that function and would further the 
goal of preventing and ending homelessness. HUD must also 
provide technical assistance to the Collaborative Applicant.
    (2) A unified funding agency would be responsible for 
requiring that each grantee maintains proper fiscal and 
accounting procedures and that each grantee have an annual 
evaluation of their financial records.
    (h) Conflict of Interest. No board member of a 
Collaborative Applicant may participate in a decision that 
financially benefits them.
    Sec. 103--General Provisions. New sections are added 
regarding preventing involuntary family separation (Sec. 404), 
and technical assistance (Sec. 405).
    Sec. 404--Preventing Involuntary Family Separation. 
Starting two years after enactment, any shelter, transitional 
housing, or permanent housing program that serves families with 
children would be required to serve families regardless of the 
children's ages. The only exception is when a transitional 
housing program is using an evidence based practice that 
requires targeting families with children of a specific age, 
and only when the provider commits to ensuring that any family 
they do not serve has an equivalent and appropriate alternative 
for the entire family.
    Sec. 405--Technical Assistance. Authorizes HUD to use up to 
1 percent of homeless assistance funding for technical 
assistance to potential project sponsors and Collaborative 
Applicants.
    Sec. 104--Protection of Personally Identifying Information 
by Victim Service Providers. A new section (Sec. 407) is added 
that requires that providers whose primary mission is to serve 
victims of domestic violence, dating violence, sexual assault, 
or stalking may not disclose for the purpose of a Homeless 
Management Information System any personally identifying 
information, including name, address, contact information, 
social security number or other specific information that could 
identify an individual.
    Sec. 105--Authorization of Appropriations. The Act 
authorizes $2.2 billion for fiscal year 2010, and such sums as 
may be necessary for fiscal years 2011-2013. Totals include 
$595 million for renewal of permanent housing rental 
assistance, leasing and operating costs in 2010, $670 million 
in 2011, $745 million in 2012, and $825 million in 2013.
    Title II--Emergency Solutions Grants Program. This section 
modifies the existing Emergency Shelter Grants (ESG) program 
and renames it the Emergency Solutions Grants Program.
    Sec. 201--Grant Assistance. This section authorizes that 20 
percent of homeless assistance funding, not including amounts 
for permanent housing renewals, would be for the Emergency 
Solutions Grants Program. It requires that recipients 
coordinate with Collaborative Applicants. It also requires that 
HUD reduce the administrative funds by half for a jurisdiction 
that has been certified (under section 402(f)(4)) as 
criminalizing homelessness. The funds would be transferred to 
the collaborative applicant for the jurisdiction.
    Sec. 202--Eligible Activities. Adds family support services 
for homeless youth, victim services, and mental health services 
to the list of eligible services that can be provided in 
shelter or as part of street outreach;
    Expands homelessness prevention activities to include 
homelessness prevention and rehousing activities--short or 
medium term housing assistance, housing relocation or 
stabilization services, housing search, mediation or outreach 
to property owners, legal services, credit repair, security or 
utility deposits, utility payments, and assistance with moving 
costs--for people who are homeless or at risk of homelessness;
    Eliminates the 30 percent cap on the amount that can be 
used for prevention and the 10 percent cap on the amount that 
can be used for staff and instead includes a 50 percent cap on 
the amount that can be used for traditional shelter and street 
outreach activities, provided that this level is at least as 
much as was utilized for these activities in the year prior to 
enactment. The remaining amount would have to be used for 
homelessness prevention and rehousing.
    Sec. 203--Participation in HMIS. Recipients of Emergency 
Solutions Grants funds would have to participate in the 
applicable homeless management information system.
    Sec. 204--Administrative Provision. Increases 
administrative fee to 10 percent (from 5 percent under current 
Emergency Shelter Grants program).
    Title III--Continuum of Care Program.
    Sec. 301--Continuum of Care. This section consolidates 
several existing McKinney-Vento programs (Supportive Housing 
Programs, Innovative Homeless, Safe Havens, Shelter Plus Care, 
and Mod. Rehab/SRO) into the ``Continuum of Care Program.'' It 
modifies existing sections 421 and 422 as follows:
    Sec. 421--Purposes.
    (1) Promote community-wide commitment to ending 
homelessness;
    (2) Provide funding to quickly rehouse homeless people 
while minimizing trauma and dislocation;
    (3) Help people access mainstream services;
    (4) Optimize self-sufficiency.
    Sec. 422--Continuum of Care Applications and Grants.
    (a) Funds can be awarded to Collaborative Applicants that 
are Unified Funding Agencies (see above) or directly to project 
sponsors.
    (b) NOFA must be released no more than 3 months after 
enactment of appropriations.
    (c) Awards must be announced no later than 5 months after 
applications are due (or 6 months for the first 2 years after 
enactment).
    (d) Obligation, Distribution and Utilization.
    (1) Project sponsors must meet all requirements for 
obligation no later than 9 months after an award is announced 
(24 months for acquisition, construction, or rehab). The 
Secretary may grant an extension under certain circumstances.
    (2) Funds must be obligated no later than 45 days after the 
project sponsor has met those requirements.
    (3) A Unified Funding Agency that receives funding must 
distribute funding to project sponsors no later than 45 days 
after receiving a request for funds from the project sponsor.
    (4) HUD may set a date by which funding must be expended. 
If it is not expended by that date, HUD will recapture the 
funds and redistribute them in the same geographic region if 
possible.
    (e) If a Collaborative Applicant applies for funding for a 
renewal project, HUD may fund that renewal for 1 year, even if 
it was not selected for funding in the competition.
    (f) When funding renewals for permanent housing leasing, 
operating costs, or rental assistance, HUD must take into 
account increases in the Fair Market Rent.
    (g) If more than one Collaborative Applicant from a 
geographic region applies for funding, HUD will fund the higher 
scoring applicant.
    (h) Assistance provided under this title is intended to 
facilitate the utilization of the Low Income Housing Tax 
Credit.
    (i) Requires HUD to set up an appeals process. The process 
must permit appeals by Collaborative Applicants, or individual 
applicants.
    (j) Allows individual programs to apply for funding without 
going through a collaborative applicant if the applicant was 
not reasonably permitted to participate in the collaborative 
application process.
    (k) Allows collaborative applicants to use up to 10 percent 
of their resources to serve people who are considered homeless 
in other federal statutes, but not under this title. The 10 
percent limitation is removed for collaborative applicants 
representing an area with a rate of homelessness of less than 
0.1 percent per capita. The collaborate applicant must 
demonstrate that the use of such funds is of an equal or 
greater priority or is equally or more cost effective in 
meeting the overall goals and objectives of the plan submitted 
under section 427(b)(1)(B), especially with respect to children 
and unaccompanied youth.
    Sec. 302--Eligible Activities.
    (a) Eligible Activities--
    (1) Construction of new housing for transitional or 
permanent housing;
    (2) Acquisition or rehabilitation to provide supportive 
services or transitional or permanent housing;
    (3) Leasing property for supportive services or 
transitional or permanent housing;
    (4) Rental assistance to provide transitional or permanent 
housing, including project-based, tenant-based, and sponsor-
based assistance (at the discretion of the provider, project-
based or sponsor-based rental assistance may have an initial 
term of 15 years with the first 5 years paid with authorized 
funds and the remaining term treated as renewal assistance);
    (5) Operating costs for transitional or permanent housing;
    (6) Supportive services for individuals or families who are 
homeless, who were homeless fewer than 6 months ago, or who are 
in permanent supportive housing;
    (7) Rehousing services, including housing search, mediation 
or outreach to property owners, credit repair, providing 
security or utility deposits, rental assistance for a final 
month at a location, assistance with moving costs, or other 
activities that help homeless people move immediately into 
housing or would benefit people who have moved into permanent 
housing in the last 6 months;
    (8) For a Collaborative Applicant that is a legal entity, 
administration and oversight of HMIS;
    (9) Operation and participation in HMIS;
    (10) For a Collaborative Applicant that is a legal entity, 
up to 3 percent can be used for administrative costs;
    (11) For a Collaborative Applicant that is also a Unified 
Funding Agency, up to an additional 3 percent for 
administrative costs (Unified Funding Agencies would be 
eligible for a total of 6 percent for administrative costs);
    (12) For Project Sponsors, up to 10 percent for 
administrative costs.
    (b) HUD can impose a minimum grant term of up to 5 years 
for new permanent housing projects.
    (c) Use Restrictions--Projects that receive funding for 
construction, acquisition, or rehabilitation must be used for 
the purpose described in the application for at least 20 years. 
If a permanent or transitional housing project is no longer 
needed, the Collaborative Applicant can recommend to HUD that 
the project be converted to one that directly benefits low-
income people.
    (d) Repayment of Assistance and Prevention of Undue 
Benefit.
    (1) With the exceptions described in paragraph (3) below, 
if a construction, acquisition or rehabilitation project ceases 
to provide the transitional or permanent housing for which it 
was designed, it must repay some or all of the initial grant. 
If it has been operating less than 10 years, it must repay 100 
percent of the grant. If it has been operating 10-20 years, it 
must repay 10 percent for each year less than 20 years that it 
operated.
    (2) With the exceptions described in paragraph (3) below, 
HUD may set conditions to prevent a project sponsor from unduly 
benefiting from the sale of a property if it received funding 
for construction, acquisition, or rehabilitation, and it 
operated that property for less than 20 years.
    (3) A grant recipient does not have to make repayments 
described in paragraphs (1) and (2) if one of the following 
conditions applies:
          (A) The sale or disposition of the property results 
        in it being used for the direct benefit of very low-
        income people;
          (B) The proceeds from the sale are used to provide 
        transitional or permanent housing for homeless people;
          (C) The project is meeting applicable standards but 
        lost rental assistance or operating cost assistance, in 
        which case it would still have to be affordable under 
        the guidelines of affordability set by the Low Income 
        Housing Tax Credit; or
          (D) There are no homeless people in the geographic 
        region, in which case the project can serve people at 
        risk of homelessness.
    (e) Eligible activities include reasonable costs for staff 
training.
    (f) People who are residing in permanent supportive housing 
are eligible to move into other permanent supportive housing 
units funded by this Act.
    (g) Permanent housing rental assistance must be 
administered by a state or local government agency or a public 
housing agency.
    Sec. 303--High Performing Communities. Establishes a new 
Sec. 424--Incentives for High-Performing Communities.
    (a) HUD may designate a Collaborative Applicant as high 
performing based on the criteria in paragraph (d) below. For 
the first two years after enactment, up to 10 Collaborative 
Applicants a year could be designated as high performing. If 
more than 10 qualify, HUD would choose the 10 best qualified. A 
high performance designation lasts one year, but can be renewed 
on an annual basis.
    (b) Application to be a High-Performing Community.
    (1) A Collaborative Applicant must apply to HUD to be 
considered a high performing community.
    (2) The application must include a report of how funding 
was used in the previous year and information to describe the 
community's performance related to the measures described in 
paragraph (d) below.
    (3) HUD must publish any application in the relevant 
geographic area and seek public comment about whether the 
applicant is meeting the requirements.
    (c) Use of Funds. A high performing community may use funds 
for any of the eligible activities listed in Section 423 (the 
eligible activities for the Continuum of Care Program), or for 
the activities in paragraphs 4 and 5 of section 414(a) (short 
and medium term rental assistance and rehousing activities for 
homeless people or people at risk of homelessness).
    (d) Definition of High-Performing Community. A high-
performing community must meet all 4 of the following 
requirements.
    (1) The mean length of episodes of homelessness is either 
less than 20 days or has decreased by 10 percent from the year 
before, taking into account similar individual circumstances;
    (2) Of the people who leave homelessness, less than 5 
percent become homeless again in the following 2 years, or the 
percentage who leave homelessness and become homeless again in 
the following two years decreases by 20 percent from the 
preceding year, taking into account similar individual 
circumstances;
    (3) The communities that compose the geographic area have 
actively encouraged homeless people to participate in homeless 
assistance services available in the area and included each 
homeless person in the data they used to determine compliance 
with this section;
    (4) If the recipient has been designated a high performing 
community in the past, they were effective at reducing the 
number of people who became homeless in that community.
    (5) With respect to collaborative applicants exercising 
their flexibility under section 422(k) to serve homeless 
families with children and youth defined as homeless under 
other federal statutes, effectiveness in achieving the outcomes 
identified in subsection 427(F) according to such standards as 
the Secretary shall promulgate.
    (e) A Collaborative Applicant that is designated as a high 
performing community must cooperate with HUD in distributing 
information about successful efforts in the community.
    Sec. 304--Program Requirements. This section retains 
requirements from the Supportive Housing Program on flood 
protection standards, the participation of homeless people, not 
supplanting local funds, and due process for terminated 
clients. It also modifies and adds the following to Section 426 
of the McKinney-Vento Act:
    (a) Site Control--When applicable, an applicant must 
achieve site control within 12 months after being notified of 
an award.
    (b) Required Agreements--Collaborative Applicants must 
agree to do the following:
          (1) Ensure that the project is operated in accordance 
        with this Act;
          (2) Monitor and report to HUD on progress of the 
        project;
          (3) Ensure that as much as possible, homeless people 
        are involved in construction, rehabilitation, 
        maintenance, operations and providing supportive 
        services;
          (4) Require all project sponsors to certify that they 
        will--
                  (A) Maintain confidentiality of records for 
                anyone receiving family violence or treatment 
                services;
                  (B) Maintain the confidentiality of the 
                location of any family violence shelter;
                  (C) Establish policies to ensure that they do 
                not restrict the educational rights of homeless 
                people;
                  (D) In the case of programs that provide 
                housing or services to homeless families, that 
                they will designate a staff person to be 
                responsible for ensuring that children are 
                enrolled in school and connected to appropriate 
                services in the community, such as Head Start 
                and other early childhood programs;
                  (E) Provide required data to HUD.
          (5) They will comply with generally accepted 
        accounting principles;
          (6) Monitor and report to HUD on matching funds;
          (7) Take the educational needs of children into 
        account when children are placed in homeless assistance 
        programs to ensure that children are as close to their 
        schools of origin as possible;
          (8) Other conditions HUD may require that are 
        consistent with the goals of this Act.
    Sec. 305--Selection Criteria, Allocation Amounts, and 
Funding. This section adds new sections establishing selection 
criteria (427), allocating funds for specific activities (428), 
establishing a process for funding permanent housing renewals 
(429), setting requirements for matching funding (430) and 
establishing an appeals procedure (431).
    Sec. 427(a)--Selection Criteria. Funding is distributed 
through a national competition based on the selection criteria 
and a need formula:
    (b)(1) Selection criteria include:
          (A) the previous performance of the recipient 
        regarding homelessness, including reductions in the 
        number of homeless people, the length of time people 
        are homeless, recidivism, as well as thoroughness in 
        reaching homeless people, jobs and income growth, and 
        prevention;
          (B) the community's plan, which includes their plan 
        to reduce number of homeless individuals and families, 
        reduce length of homeless episodes, address the needs 
        of all relevant subpopulations of homeless, and how the 
        recipient will collaborate with local education 
        authorities to assist in the identification of 
        individuals and families who become or remain homeless 
        and are informed of their eligibility for services 
        under the education provisions of the act (Title VII, 
        subtitle B);
          (C) the methodology for setting priorities including 
        considering the full range of opinions of stakeholders 
        with knowledge of homelessness in the geographic area, 
        setting forth objective criteria, and openness to 
        proposals from entities that have not previously 
        received funds under this subtitle;
          (D) leveraging of other public and private resources; 
        and
          (E) coordination with the other Federal, State, 
        local, private, and other entities;
          (F) for Collaborative Applicants exercising their 
        flexibility under section 422(k) to serve households 
        who qualify as homeless under any Federal statute other 
        than this title, program goals and outcomes which must 
        include program goals and outcomes which must include: 
        (i) preventing homelessness among the subset of such 
        families with children and youth who are at highest 
        risk of becoming homeless as defined under this title; 
        or (ii) achieving independent living in permanent 
        housing among such families with children and youth, 
        especially those who have a history of doubled-up and 
        other temporary housing situations or are living in a 
        temporary housing situation due to lack of available 
        and appropriate emergency shelter, through the 
        provision of eligible assistance that directly 
        contributes to achieving such results including 
        assistance to address chronic disabilities, chronic 
        physical health or mental health conditions, substance 
        addiction, histories of domestic violence or childhood 
        abuse, or multiple barriers to employment.
          (G) other factors HUD determines to be appropriate.
    (2) The pro rata need formula is based on the same formula 
that is currently used to determine the pro-rata need in the 
Continuum of Care. It is based on the formula for CDBG that 
represents the geographic area adjusted to ensure that 75 
percent is for metropolitan cities and urban counties that 
receive Emergency Shelter Grants funding, and 25 percent is for 
metropolitan cities and urban and non-urban counties that do 
not receive Emergency Shelter Grants. If a Collaborative 
Applicant covers more than one jurisdiction, their pro-rata 
need would be the sum of the pro-rata needs for all of the 
jurisdictions they represent.
    (3) HUD cannot require that communities count homeless 
people unless they are in places not meant for human 
habitation, emergency shelters, or transitional housing.
    (c) HUD can also make adjustments to ensure that every 
community has enough funding to renew all of their existing 
projects or to ensure that no community is discouraged from 
replacing projects with ones they determine will better help 
them achieve their goals.
    Sec. 428--Allocation of Amounts and Incentives for Specific 
Eligible Activities. At least 30 percent of funds, not 
including amounts for permanent housing renewals, must be used 
for new permanent housing for people with disabilities 
(individuals and families headed by a person with a 
disability). The calculation for this 30 percent applies 
nationally, not to each individual community. The 30 percent 
set aside would be reduced proportionately to ensure that there 
is always adequate funding to renew existing projects and also 
funding to develop new projects that are not permanent housing. 
The 30 percent figure is reduced proportionately for 
communities that have developed enough permanent housing for 
all of the chronically homeless people in their geographic 
area. (For example, if a geographic area representing 10 
percent of the nation's pro-rata need were to develop enough 
permanent housing to end chronic homelessness, the nationwide 
30 percent requirement would be reduced to 27 percent.) The 30 
percent requirement would terminate when HUD determines that 
150,000 new units of permanent housing for homeless people with 
disabilities has been funded since 2001.
    (b) At least 10 percent of funding must be used for 
permanent housing for families with children.
    (d) HUD must provide incentives to fund interventions that 
are proven to be effective at reducing homelessness generally 
or for a specific subpopulation or for achieving homeless 
prevention and independent living goals under the option to 
serve families with children and unaccompanied youth defined as 
homeless under other federal statutes.
    These interventions include rapid rehousing programs for 
homeless families, permanent supportive housing for chronically 
homeless individuals and families, and other interventions that 
HUD determines, based on research and after a period of public 
comment, are effective at reducing homelessness.
    To the extent practicable, HUD should balance incentives 
for in- dividuals, families, and other subpopulations.
    The incentives cannot discourage collaborative applicants 
from exercising their option to serve families with children 
and unaccompanied youth defined as homeless under other federal 
statutes (sec. 422(k)).
    (e) If a community fully implemented any of the proven 
strategies, they could still receive a bonus and use it for any 
eligible activity, including homelessness prevention (as 
allowed by the ESG program).
    Sec. 429--Permanent Housing Renewals. All renewals of 
leasing, rental assistance, or operating costs for permanent 
housing are funded for 1 year at a time out of either the 
appropriations account for this title or the appropriations 
account for section 8 project-based rental assistance, except 
that funding can only be provided through the account for 
project-based rental assistance if there is sufficient funding 
in that account for the full renewal of all expiring project-
based contracts. Project-based rental assistance may, at the 
discretion of the project sponsor, have a 15-year term subject 
to annual appropriations.
    Sec. 430--Matching Funding. Collaborative Applicants must 
match all Continuum of Care Program funding with 25 percent 
from other sources, except that leasing projects, which 
previously had no match requirement, would continue to have no 
match requirement. In- kind services may count toward the match 
only if they are documented by a memorandum of understanding 
between the project sponsor and the entity providing the 
services.
    Sec. 431--Appeals. Applicants who cannot receive 
certification of consistency with the consolidated plan may 
appeal that decision to HUD and receive a determination within 
45 days of whether the certification was unreasonably withheld, 
in which case the application may go forward.
    Sec. 306--Research. For each of fiscal years 2010, 2011, 
2012, and 2013, $8,000,000 would be authorized to research the 
efficacy of interventions for homeless families to study three 
different sites over three years to evaluate the effectiveness 
of those programs.
    Title IV--Rural Housing Stability Assistance.
    Sec. 401--Rural Housing Stability Assistance. This section 
modifies the Rural Homeless Assistance Program, which is 
authorized but has never been funded, and changes the title to 
the Rural Housing Stability Assistance Program. The changes 
that would be made by this Act to the existing rural program 
are as follows:
    (B) The purpose of the program is:
           Rehousing or improving the housing 
        situations of individuals who are homeless or at risk 
        of homelessness in the geographic area;
           Stabilizing the housing of individuals who 
        are in imminent danger of losing housing; and
           Improving the ability of the lowest-income 
        residents of the community to afford stable housing.
    (C) The list of eligible activities is expanded to include 
construction, acquisition, rehabilitation, leasing, rental 
assistance, and operating costs for transitional or permanent 
housing for homeless people.
    (F) Adds to the requirements for applying for these funds 
the following:
           A description of consultations to determine 
        the most important uses of funding;
           A description of the nature of homelessness 
        and the worst housing situations in the area.
    (G) Requires the same uniform 25 percent match requirement 
as the Continuum of Care Program. Grantees that currently have 
no match requirement could continue to be renewed with no match 
requirement. The match may be in kind when documented by a 
memorandum of understanding.
    Replaces the selection criteria with the following:
           The participation of potential beneficiaries 
        in determining need;
           The degree to which the project addresses 
        the most harmful housing conditions in the community;
           The degree of collaboration with other 
        entities;
           Performance of the organization in improving 
        housing situations;
           For organizations that have previously 
        received funding, the extent to which they improved 
        conditions in the community;
           Pro-rata need;
           Other HUD determined criteria.
    (J) Funding. A rural applicant could choose to apply under 
the Continuum of Care Program or the Rural Housing Stability 
Program. The funding level for an applicant for the Rural 
Housing Stability Program would be based on their selection 
criteria noted above and also on their pro-rata need, 
calculated the same way pro-rata need is calculated when 
applying under the Continuum of Care Program (see Additional 
Criteria under Sec. 427--Selection Criteria). If a 
Collaborative Applicant covers more than one jurisdiction, 
their pro-rata need would be the sum of the pro-rata needs for 
all of the jurisdictions they represent.
    At least 5 percent of the funding provided for subtitles B 
and C would be for the Rural Housing Stability Assistance 
Program.
    (K) If more than one entity from a rural area applies for 
funding, HUD would first seek agreement from the applicants 
about how to proceed, and if there is no agreement, HUD will 
fund the application that would result in the most funding for 
the geographic area.
    Sec. 402--GAO Study of Homelessness and Homeless Assistance 
in Rural Areas.
    (a) Within 12 months of enactment, GAO must conduct a study 
of rural homelessness that includes the following:
    (1) A general description of homelessness, including the 
range of living situations among homeless people in rural 
areas, including tribal lands and colonias.
    (2) An estimate of the incidence and prevalence of 
homelessness in rural areas.
    (3) An estimate of the number of people who migrate from 
rural areas to non-rural areas to receive homeless assistance.
    (4) A description of barriers that people in rural areas 
experience when they try to access homeless assistance and 
recommendations for removing those barriers.
    (5) A comparison of the rate of homelessness in rural areas 
and among people from rural areas to the rate of homelessness 
in urban areas and among people from urban areas.
    (6) A description of homeless assistance in rural areas.
    (7) A description of barriers that homeless assistance 
providers from rural areas encounter when trying to access 
federal homeless assistance and recommendations for removing 
those barriers.
    (8) An assessment of the type and amount of homeless 
assistance awarded to rural areas and whether that assistance 
proportional to the distribution of homeless people in rural 
areas.
    (9) An assessment of the roles of the Departments of 
Housing and Urban Development and Agriculture and other Federal 
departments and agencies in administering homeless assistance 
programs in rural areas.
    (b) GAO shall consult the Secretaries of Agriculture, HUD, 
HHS, Education, Labor, VA, the Executive Director of the 
Interagency Council on Homelessness, recipients of homeless 
assistance grants in rural areas, individuals and families in 
rural areas who have sought or are seeking Federal homeless 
assistance, and national advocacy groups concerned with 
homelessness, rural housing, and rural community development.
    Title V--Repeals and Conforming Amendments. This Act would 
take effect on the sooner of 18 months after enactment or 3 
months after HUD publishes final regulations. HUD shall 
promulgate regulations within 12 months of enactment.


         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) 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):

                 MCKINNEY-VENTO HOMELESS ASSISTANCE ACT


TITLE I--GENERAL PROVISIONS

           *       *       *       *       *       *       *


SECTION 101. SHORT TITLE AND TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``McKinney-
Vento Homeless Assistance Act''.
  (b) Table Of Contents.--

           *       *       *       *       *       *       *


                      [TITLE IV--HOUSING ASSISTANCE

           [Subtitle A--Comprehensive Homeless Assistance Plan

[Sec. 401. Housing affordability strategy.
[Sec. 402. Discharge coordination policy.

              [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 IV--HOUSING ASSISTANCE

                     Subtitle A--General Provisions

Sec. 401. Definitions.
Sec. 402. Collaborative applicants.
Sec. 403. Housing affordability strategy.
Sec. 404. Preventing involuntary family separation
Sec. 405. Technical assistance.
Sec. 406. Discharge coordination policy.
Sec. 407. Protection of personally identifying information by victim 
          service providers.
Sec. 408. Authorization of appropriations.

             Subtitle B--Emergency Solutions Grants Program

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

                  Subtitle C--Continuum of Care Program

Sec. 421. Purposes.
Sec. 422. Continuum of care applications and grants.
Sec. 423. Eligible activities.
Sec. 424. Incentives for high-performing communities.
Sec. 425. Supportive services.
Sec. 426. Program requirements.
Sec. 427. Selection criteria.
Sec. 428. Allocation of amounts and incentives for specific eligible 
          activities.
Sec. 429. Renewal funding and terms of assistance for permanent housing.
Sec. 430. Matching funding.
Sec. 431. Appeal procedure.
Sec. 432. Regulations.
Sec. 433. Reports to Congress.

          Subtitle D--Rural Housing Stability Assistance Program

Sec. 491. Rural housing stability grant program.
Sec. 492. Use of FHMA inventory for transitional housing for homeless 
          persons and for turnkey housing.

           *       *       *       *       *       *       *


TITLE I--GENERAL PROVISIONS

           *       *       *       *       *       *       *


SEC. 103. GENERAL DEFINITION OF HOMELESS INDIVIDUAL.

  [(a) In General.--For purposes of this Act, the term 
``homeless'' or ``homeless individual or homeless 
person''includes--
          [(1) an individual who lacks a fixed, regular, and 
        adequate nighttime residence; and
          [(2) an individual who has a primary nighttime 
        residence that is--
                  [(A) a supervised publicly or privately 
                operated shelter designed to provide temporary 
                living accommodations (including welfare 
                hotels, congregate shelters, and transitional 
                housing for the mentally ill);
                  [(B) an institution that provides a temporary 
                residence for individuals intended to be 
                institutionalized; or
                  [(C) a public or private place not designed 
                for, or ordinarily used as, a regular sleeping 
                accommodation for human beings.]
  (a) In General.--For purposes of this Act, the terms 
``homeless'', ``homeless individual'', and ``homeless person'' 
means--
          (1) an individual or family who lacks a fixed, 
        regular, and adequate nighttime residence;
          (2) an individual or family with a primary nighttime 
        residence that is a public or private place not 
        designed for or ordinarily used as a regular sleeping 
        accommodation for human beings, including a car, park, 
        abandoned building, bus or train station, airport, or 
        camping ground;
          (3) an individual or family living in a supervised 
        publicly or privately operated shelter designated to 
        provide temporary living arrangements (including hotels 
        and motels paid for by Federal, State, or local 
        government programs for low-income individuals or by 
        charitable organizations, congregate shelters, and 
        transitional housing);
          (4) an individual who resided in a shelter or place 
        not meant for human habitation and who is exiting an 
        institution where he or she temporarily resided; and
          (5) an individual or family who--
                  (A) will imminently lose their housing, 
                including housing they own, rent, or live in 
                without paying rent, are sharing with others, 
                and rooms in hotels or motels not paid for by 
                Federal, State, or local government programs 
                for low-income individuals or by charitable 
                organizations, as evidenced by--
                          (i) a court order resulting from an 
                        eviction action that notifies the 
                        individual or family that they must 
                        leave within 14 days;
                          (ii) the individual or family having 
                        a primary nighttime residence that is a 
                        room in a hotel or motel and where they 
                        lack the resources necessary to reside 
                        there for more than 14 days;
                          (iii) credible evidence indicating 
                        that the owner or renter of the housing 
                        will not allow the individual or family 
                        to stay for more than 14 days, and any 
                        oral statement from an individual or 
                        family seeking homeless assistance that 
                        is found to be credible shall be 
                        considered credible evidence for 
                        purposes of this clause; or
                          (iv) such other factors that the 
                        Secretary determines will likely result 
                        in the individual or family becoming 
                        homeless, which may include recent 
                        history of homelessness or residential 
                        instability;
                  (B) has no subsequent residence identified; 
                and
                  (C) lacks the resources or support networks 
                needed to obtain other permanent housing.
  (b) Domestic Violence and Other Dangerous or Life-Threatening 
Conditions.--Notwithstanding any other provision of this 
section, the Secretary shall consider to be homeless any 
individual or family who is fleeing, or is attempting to flee, 
domestic violence, dating violence, sexual assault, stalking, 
or other dangerous or life-threatening conditions in the 
individual's or family's current housing situation, including 
where the health and safety of children are jeopardized, and 
who have no other residence and lack the resources or support 
networks to obtain other permanent housing.
  [(b)] (c) Income Eligibility.--
          (1) * * *

           *       *       *       *       *       *       *

  [(c)] (d) Exclusion.--For purposes of this Act, the term 
``homeless'' or ``homeless individual'' does not include any 
individual imprisoned or otherwise detained pursuant to an Act 
of the Congress or a State law.
  (e) Persons Experiencing Homelessness.--Any references in 
this Act to homeless individuals (including homeless persons) 
or homeless groups (including homeless persons) shall be 
considered to include, and to refer to, individuals 
experiencing homelessness or groups experiencing homelessness, 
respectively.

           *       *       *       *       *       *       *


      TITLE II--UNITED STATES INTERAGENCY COUNCIL ON HOMELESSNESS

SEC. 201. ESTABLISHMENT.

  There is established in the executive branch an independent 
establishment to be known as the United States Interagency 
Council on Homelessness whose mission shall be to coordinate 
the Federal response to homelessness and to create a national 
partnership at every level of government and with the private 
sector to reduce and end homelessness in the nation while 
maximizing the effectiveness of the Federal Government in 
contributing to the end of homelessness.

SEC. 202. MEMBERSHIP.

  (a) Members.--The Council shall be composed of the following 
members:
          (1) * * *

           *       *       *       *       *       *       *

          (16) The Commissioner of Social Security, or the 
        designee of the Commissioner.
          (17) The Attorney General of the United States, or 
        the designee of the Attorney General.
          (18) The Director of the Office of Management and 
        Budget, or the designee of the Director.
          (19) The Director of the Office of Faith-Based and 
        Community Initiatives, or the designee of the Director.
          (20) The Director of USA FreedomCorps, or the 
        designee of the Director.
          (21) The Commissioner of the Internal Revenue 
        Service, or the designee of the Commissioner.
          [(16)] (22) The heads of such other Federal agencies 
        as the Council considers appropriate, or their 
        designees.

           *       *       *       *       *       *       *

  (c) Meetings.--The Council shall meet at the call of its 
Chairperson or a majority of its members, but not less often 
than [annually] four times each year, and the rotation of the 
positions of Chairperson and Vice Chairperson required under 
subsection (b) shall occur at the first meeting of each year.

           *       *       *       *       *       *       *

  (e) Administration.--The Executive Director of the Council 
shall report to the Director of Domestic Policy Council.

SEC. 203. FUNCTIONS.

  (a) Duties.--The Council shall--
          (1) not later than 12 months after the date of the 
        enactment of the Homeless Emergency Assistance and 
        Rapid Transition to Housing Act of 2008, develop, make 
        available for public comment, and submit to the 
        President and to Congress a National Strategic Plan to 
        End Homelessness, and shall update such plan annually;
          [(1)] (2) review all Federal activities and programs 
        to assist homeless individuals;
          [(2)] (3) take such actions as may be necessary to 
        reduce duplication among programs and activities by 
        Federal agencies to assist homeless individuals;
          [(3)] (4) monitor, evaluate, and recommend 
        improvements in programs and activities to assist 
        homeless individuals conducted by Federal agencies, 
        State and local governments, and private voluntary 
        organizations;
          [(4)] (5) provide professional and technical 
        assistance, (by [at least 2, but in no case more than 
        5] not less than 5, but in no case more than 10, 
        regional coordinators employed by the Council, each 
        having responsibility for interaction and coordination 
        of the activities of the Council within the 10 standard 
        Federal regions) to States, local governments, and 
        other public and private nonprofit organizations, in 
        order to enable such governments and organizations to--
                  (A) * * *

           *       *       *       *       *       *       *

          (6) encourage the creation of State Interagency 
        Councils on Homelessness and the formulation of 
        jurisdictional 10-year plans to end homelessness at 
        state, city, and county levels;
          (7) annually obtain from Federal agencies their 
        identification of consumer-oriented entitlement and 
        other resources for which persons experiencing 
        homelessness may be eligible and the agencies' 
        identification of improvements to ensure access; 
        develop mechanisms to ensure access by persons 
        experiencing homelessness to all Federal, State, and 
        local programs for which the persons are eligible, and 
        to verify collaboration among entities within a 
        community that receive Federal funding under programs 
        targeted for persons experiencing homelessness, and 
        other programs for which persons experiencing 
        homelessness are eligible, including mainstream 
        programs identified by the Government Accountability 
        Office in the reports entitled ``Homelessness: 
        Coordination and Evaluation of Programs Are 
        Essential'', issued February 26, 1999, and 
        ``Homelessness: Barriers to Using Mainstream 
        Programs'', issued July 6, 2000;
          (8) conduct research and evaluation related to its 
        functions as defined in this section;
          (9) develop joint federal agency and other 
        initiatives to fulfill the goals of the agency;
          (10) participate in Federal agency policy 
        development, and development, review, evaluation, and 
        timing of all related Federal funding competitions;
          [(5)] (11) collect and disseminate information 
        relating to homeless individuals;
          [(6)] (12) prepare the annual reports required in 
        subsection (c)(2); [and]
          [(7)] (13) prepare and distribute to States 
        (including State contact persons), local governments, 
        and other public and private nonprofit organizations, a 
        bimonthly bulletin that describes the Federal resources 
        available to them to assist the homeless, including 
        current information regarding application deadlines and 
        appropriate persons to contact in each Federal agency 
        providing the resources[.];
          (14) develop constructive alternatives to 
        criminalizing homelessness and eliminate laws and 
        policies that prohibit sleeping, feeding, sitting, 
        resting, or lying in public spaces when there are no 
        suitable alternatives, result in the destruction of a 
        homeless person's property without due process, or are 
        selectively enforced against homeless persons; and
          (15) not later than the expiration of the 6-month 
        period beginning upon completion of the study required 
        under section 3(d) of the Homeless Emergency Assistance 
        and Rapid Transition to Housing Act of 2008, convene a 
        meeting of representatives of all Federal agencies and 
        committees of the House of Representatives and the 
        Senate having jurisdiction over any Federal program to 
        assist homeless individuals or families, local and 
        State governments, academic researchers who specialize 
        in homelessness, nonprofit housing and service 
        providers that receive funding under any Federal 
        program to assist homeless individuals or families, 
        organizations advocating on behalf of such nonprofit 
        providers and homeless persons receiving housing or 
        services under any such Federal program, and homeless 
        persons receiving housing or services under any such 
        Federal program, at which meeting such representatives 
        shall discuss all issues relevant to whether the 
        definitions of ``homeless'' under paragraphs (1) 
        through (4) of section 103(a) of the McKinney-Vento 
        Homeless Assistance Act, as amended by section 3 of the 
        Homeless Emergency Assistance and Rapid Transition to 
        Housing Act of 2008, should be modified by the 
        Congress, including whether there is a compelling need 
        for a uniform definition of homelessness under Federal 
        law, the extent to which the differences in such 
        definitions create barriers for individuals to 
        accessing services and to collaboration between 
        agencies, and the relative availability, and barriers 
        to access by persons defined as homeless, of mainstream 
        programs identified by the Government Accountability 
        Office in the two reports identified in paragraph (7) 
        of this subsection; and shall submit transcripts of 
        such meeting, and any majority and dissenting 
        recommendations from such meetings, to each committee 
        of the House of Representatives and the Senate having 
        jurisdiction over any Federal program to assist 
        homeless individuals or families not later than the 
        expiration of the 60-day period beginning upon 
        conclusion of such meeting.
  (b) Authority.--In carrying out subsection (a), the Council 
may--
          (1) arrange [Federal] national, regional, State, and 
        local conferences for the purpose of developing and 
        coordinating effective programs and activities to 
        assist homeless individuals[; and] and pay for expenses 
        of attendance at meetings which are concerned with the 
        functions or activities for which the appropriation is 
        made;
          (2) publish a newsletter concerning Federal, State, 
        and local programs that are effectively meeting the 
        needs of homeless individuals[.]; and
          (3) establish a National Advisory Panel to advise and 
        assist the Council in achieving its mission by 
        convening a national group of experts in policy and 
        practice from the public and private sector, including 
        consumers.
  (c) Reports.--
          (1) Within 90 days after the date of the enactment of 
        this Act,and annually thereafter, the head of each 
        Federal agency that is a member of the Council shall 
        prepare and transmit to the Congress and the Council a 
        report that describes--
                  (A) * * *
                  (B) impediments, including any statutory and 
                regulatory restrictions, to the use by homeless 
                individuals of each such program and to 
                obtaining services or benefits under each such 
                program[; and];
                  (C) efforts made by such agency to increase 
                the opportunities for homeless individuals to 
                obtain shelter, food, and supportive 
                services[.]; and
                  (D) efforts by such agency to prevent 
                homelessness through agency initiatives in 
                targeted or mainstream programs.

           *       *       *       *       *       *       *


SEC. 204. DIRECTOR AND STAFF.

  [(a) Director.--The Council shall appoint an Executive 
Director, who shall be compensated at a rate not to exceed the 
rate of basic pay payable for level V of the Executive Schedule 
under section 5316 of title 5, United States Code. The Council 
shall appoint an Executive Director at the first meeting of the 
Council held under section 202(c).]
  (a) Director.--The President shall appoint an Executive 
Director, with the advice and consent of the Senate, who shall 
serve at the pleasure of the President, and who shall be 
compensated at a rate not to exceed the maximum level for the 
Senior Executive Service.

           *       *       *       *       *       *       *


SEC. 205. POWERS.

  (a) * * *

           *       *       *       *       *       *       *

  (d) Donations.--The Council may accept, use, and dispose of 
gifts or donations of services or [property.] property, both 
real and personal, public and private, without fiscal year 
limitation, for the purpose of aiding or facilitating the work 
of the Council.

           *       *       *       *       *       *       *


[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.

  There are authorized to be appropriated to carry out this 
title $3,000,000 for fiscal year 2009 and such sums as may be 
necessary for fiscal years 2010, 2011, 2012, and 2013. Any 
amounts appropriated to carry out this title shall remain 
available until expended.

           *       *       *       *       *       *       *


                      TITLE IV--HOUSING ASSISTANCE

          [Subtitle A--Comprehensive Homeless Assistance Plan]

                     Subtitle A--General Provisions

SEC. 401. DEFINITIONS.

  For purposes of this title:
          (1) At risk of homelessness.--The term ``at risk of 
        homelessness'' means, with respect to an individual or 
        family, that the individual or family--
                  (A) has income below 30 percent of median 
                income for the geographic area;
                  (B) has insufficient resources immediately 
                available to attain housing stability; and
                  (C)(i) has moved frequently because of 
                economic reasons;
                  (ii) is living in the home of another because 
                of economic hardship;
                  (iii) has been notified that their right to 
                occupy their current housing or living 
                situation will be terminated;
                  (iv) lives in a hotel or motel;
                  (v) lives in severely overcrowded housing;
                  (vi) is exiting an institution; or
                  (vii) otherwise lives in housing that has 
                characteristics associated with instability and 
                an increased risk of homelessness.
        Such term includes all families with children and youth 
        defined as homeless under other Federal statutes.
          (2) Chronically homeless.--
                  (A) In general.--The term ``chronically 
                homeless'' means, with respect to an individual 
                or family, that the individual or family--
                          (i) is homeless and lives or resides 
                        in a place not meant for human 
                        habitation, a safe haven, or in an 
                        emergency shelter;
                          (ii) has been homeless and living or 
                        residing in a place not meant for human 
                        habitation, a safe haven, or in an 
                        emergency shelter continuously for at 
                        least 1 year or on at least 4 separate 
                        occasions in the last 3 years; and
                          (iii) has an adult head of household 
                        (or a minor head of household if no 
                        adult is present in the household) with 
                        a diagnosable substance use disorder, 
                        serious mental illness, developmental 
                        disability (as defined in section 102 
                        of the Developmental Disabilities 
                        Assistance and Bill of Rights Act of 
                        2000 (42 U.S.C. 15002)), post traumatic 
                        stress disorder, cognitive impairments 
                        resulting from a brain injury, or 
                        chronic physical illness or disability, 
                        including the co-occurrence of 2 or 
                        more of those conditions.
                  (B) Rule of construction.--A person who 
                currently lives or resides in an institutional 
                care facility, including a jail, substance 
                abuse or mental health treatment facility, 
                hospital or other similar facility, and has 
                resided there for fewer than 90 days shall be 
                considered chronically homeless if such person 
                met all of the requirements described in 
                subparagraph (A) prior to entering that 
                facility.
          (3) Collaborative applicant.--The term 
        ``collaborative applicant'' means an entity that--
                  (A) carries out the duties specified in 
                section 402;
                  (B) serves as the applicant for project 
                sponsors who jointly submit a single 
                application for a grant under subtitle C in 
                accordance with a collaborative process; and
                  (C) if the entity is a legal entity and is 
                awarded such grant, receives such grant 
                directly from the Secretary.
          (4) Collaborative application.--The term 
        ``collaborative application'' means an application for 
        a grant under subtitle C that--
                  (A) satisfies section 422; and
                  (B) is submitted to the Secretary by a 
                collaborative applicant.
          (5) Consolidated plan.--The term ``Consolidated 
        Plan'' means a comprehensive housing affordability 
        strategy and community development plan required in 
        part 91 of title 24, Code of Federal Regulations.
          (6) Eligible entity.--The term ``eligible entity'' 
        means, with respect to a subtitle, a public entity, a 
        private entity, or an entity that is a combination of 
        public and private entities, that is eligible to 
        directly receive grant amounts under such subtitle.
          (7) Families with children and youth defined as 
        homeless under other federal statutes.--The term 
        ``families with children and youth defined as homeless 
        under other Federal statutes'' means any children or 
        youth that are defined as ``homeless'' under any 
        Federal statute other than this subtitle, but are not 
        defined as homeless under section 103, and shall also 
        include the parent, parents, or guardian of such 
        children or youth under subtitle B of title VII this 
        Act (42 U.S.C. 11431 et seq.).
          (8) Geographic area.--The term ``geographic area'' 
        means a State, metropolitan city, urban county, town, 
        village, or other nonentitlement area, or a combination 
        or consortia of such, in the United States, as 
        described in section 106 of the Housing and Community 
        Development Act of 1974 (42 U.S.C. 5306).
          (9) Homeless individual with a disability.--
                  (A) In general.--The term ``homeless 
                individual with a disability'' means an 
                individual who is homeless, as defined in 
                section 103, and has a disability that--
                          (i)(I) is expected to be long-
                        continuing or of indefinite duration;
                          (II) substantially impedes the 
                        individual's ability to live 
                        independently;
                          (III) could be improved by the 
                        provision of more suitable housing 
                        conditions; and
                          (IV) is a physical, mental, or 
                        emotional impairment, including an 
                        impairment caused by alcohol or drug 
                        abuse, post traumatic stress disorder, 
                        or brain injury;
                          (ii) is a developmental disability, 
                        as defined in section 102 of the 
                        Developmental Disabilities Assistance 
                        and Bill of Rights Act of 2000 (42 
                        U.S.C. 15002); or
                          (iii) is the disease of acquired 
                        immunodeficiency syndrome or any 
                        condition arising from the etiologic 
                        agency for acquired immunodeficiency 
                        syndrome.
                  (B) Rule.--Nothing in clause (iii) of 
                subparagraph (A) shall be construed to limit 
                eligibility under clause (i) or (ii) of 
                subparagraph (A).
          (10) Legal entity.--The term ``legal entity'' means--
                  (A) an entity described in section 501(c)(3) 
                of the Internal Revenue Code of 1986 (26 U.S.C. 
                501(c)(3)) and exempt from tax under section 
                501(a) of such Code;
                  (B) an instrumentality of State or local 
                government; or
                  (C) a consortium of instrumentalities of 
                State or local governments that has constituted 
                itself as an entity.
          (11) Metropolitan city; urban county; nonentitlement 
        area.--The terms ``metropolitan city'', ``urban 
        county'', and ``nonentitlement area'' have the meanings 
        given such terms in section 102(a) of the Housing and 
        Community Development Act of 1974 (42 U.S.C. 5302(a)).
          (12) New.--The term ``new'' means, with respect to 
        housing, that no assistance has been provided under 
        this title for the housing.
          (13) Operating costs.--The term ``operating costs'' 
        means expenses incurred by a project sponsor operating 
        transitional housing or permanent housing under this 
        title with respect to--
                  (A) the administration, maintenance, repair, 
                and security of such housing;
                  (B) utilities, fuel, furnishings, and 
                equipment for such housing; or
                  (C) coordination of services as needed to 
                ensure long-term housing stability.
          (14) Outpatient health services.--The term 
        ``outpatient health services'' means outpatient health 
        care services, mental health services, and outpatient 
        substance abuse services.
          (15) Permanent housing.--The term ``permanent 
        housing'' means community-based housing without a 
        designated length of stay, and includes both permanent 
        supportive housing and permanent housing without 
        supportive services.
          (16) Personally identifying information.--The term 
        ``personally identifying information'' means 
        individually identifying information for or about an 
        individual, including information likely to disclose 
        the location of a victim of domestic violence, dating 
        violence, sexual assault, or stalking, including--
                  (A) a first and last name;
                  (B) a home or other physical address;
                  (C) contact information (including a postal, 
                e-mail or Internet protocol address, or 
                telephone or facsimile number);
                  (D) a social security number; and
                  (E) any other information, including date of 
                birth, racial or ethnic background, or 
                religious affiliation, that, in combination 
                with any other non-personally identifying 
                information, would serve to identify any 
                individual.
          (17) Private nonprofit organization.--The term 
        ``private nonprofit organization'' means an 
        organization--
                  (A) no part of the net earnings of which 
                inures to the benefit of any member, founder, 
                contributor, or individual;
                  (B) that has a voluntary board;
                  (C) that has an accounting system, or has 
                designated a fiscal agent in accordance with 
                requirements established by the Secretary; and
                  (D) that practices nondiscrimination in the 
                provision of assistance.
          (18) Project.--The term ``project'' means, with 
        respect to activities carried out under subtitle C, 
        eligible activities described in section 423(a), 
        undertaken pursuant to a specific endeavor, such as 
        serving a particular population or providing a 
        particular resource.
          (19) Project-based.--The term ``project-based'' 
        means, with respect to rental assistance, that the 
        assistance is provided pursuant to a contract that--
                  (A) is between--
                          (i) the recipient or a project 
                        sponsor; and
                          (ii) an owner of a structure that 
                        exists as of the date the contract is 
                        entered into; and
                  (B) provides that rental assistance payments 
                shall be made to the owner and that the units 
                in the structure shall be occupied by eligible 
                persons for not less than the term of the 
                contract.
          (20) Project sponsor.--The term ``project sponsor'' 
        means, with respect to proposed eligible activities, 
        the organization directly responsible for carrying out 
        the proposed eligible activities.
          (21) Recipient.--Except as used in subtitle B, the 
        term ``recipient'' means an eligible entity who--
                  (A) submits an application for a grant under 
                section 422 that is approved by the Secretary;
                  (B) receives the grant directly from the 
                Secretary to support approved projects 
                described in the application; and
                  (C)(i) serves as a project sponsor for the 
                projects; or
                  (ii) awards the funds to project sponsors to 
                carry out the projects.
          (22) Secretary.--The term ``Secretary'' means the 
        Secretary of Housing and Urban Development.
          (23) Serious mental illness.--The term ``serious 
        mental illness'' means a severe and persistent mental 
        illness or emotional impairment that seriously limits a 
        person's ability to live independently.
          (24) Solo applicant.--The term ``solo applicant'' 
        means an entity that is an eligible entity, directly 
        submits an application for a grant under subtitle C to 
        the Secretary, and, if awarded such grant, receives 
        such grant directly from the Secretary.
          (25) Sponsor-based.--The term ``sponsor-based'' 
        means, with respect to rental assistance, that the 
        assistance is provided pursuant to a contract that--
                  (A) is between--
                          (i) the recipient or a project 
                        sponsor; and
                          (ii) an independent entity that--
                                  (I) is a private 
                                organization; and
                                  (II) owns or leases dwelling 
                                units; and
                  (B) provides that rental assistance payments 
                shall be made to the independent entity and 
                that eligible persons shall occupy such 
                assisted units.
          (26) State.--Except as used in subtitle B, the term 
        ``State'' means each of the several States, the 
        District of Columbia, the Commonwealth of Puerto Rico, 
        the United States Virgin Islands, Guam, American Samoa, 
        the Commonwealth of the Northern Mariana Islands, the 
        Trust Territory of the Pacific Islands, and any other 
        territory or possession of the United States.
          (27) Supportive services.--The term ``supportive 
        services'' means services that address the special 
        needs of people served by a project, including--
                  (A) the establishment and operation of a 
                child care services program for families 
                experiencing homelessness;
                  (B) the establishment and operation of an 
                employment assistance program, including 
                providing job training;
                  (C) the provision of outpatient health 
                services, food, and case management;
                  (D) the provision of assistance in obtaining 
                permanent housing, employment counseling, and 
                nutritional counseling;
                  (E) the provision of outreach services, 
                advocacy, life skills training, and housing 
                search and counseling services;
                  (F) the provision of mental health services, 
                trauma counseling, and victim services;
                  (G) the provision of assistance in obtaining 
                other Federal, State, and local assistance 
                available for residents of supportive housing 
                (including mental health benefits, employment 
                counseling, and medical assistance, but not 
                including major medical equipment);
                  (H) the provision of legal services for 
                purposes including requesting reconsiderations 
                and appeals of veterans and public benefit 
                claim denials and resolving outstanding 
                warrants that interfere with an individual's 
                ability to obtain and retain housing;
                  (I) the provision of--
                          (i) transportation services that 
                        facilitate an individual's ability to 
                        obtain and maintain employment; and
                          (ii) health care; and
                  (J) other supportive services necessary to 
                obtain and maintain housing.
          (28) Tenant-based.--The term ``tenant-based'' means, 
        with respect to rental assistance, assistance that--
                  (A) allows an eligible person to select a 
                housing unit in which such person will live 
                using rental assistance provided under subtitle 
                C, except that if necessary to assure that the 
                provision of supportive services to a person 
                participating in a program is feasible, a 
                recipient or project sponsor may require that 
                the person live--
                          (i) in a particular structure or unit 
                        for not more than the first year of the 
                        participation; or
                          (ii) within a particular geographic 
                        area for the full period of the 
                        participation, or the period remaining 
                        after the period referred to in 
                        subparagraph (A); and
                  (B) provides that a person may receive such 
                assistance and move to another structure, unit, 
                or geographic area if the person has complied 
                with all other obligations of the program and 
                has moved out of the assisted dwelling unit in 
                order to protect the health or safety of an 
                individual who is or has been the victim of 
                domestic violence, dating violence, sexual 
                assault, or stalking, and who reasonably 
                believed he or she was imminently threatened by 
                harm from further violence if he or she 
                remained in the assisted dwelling unit.
          (29) Transitional housing.--The term ``transitional 
        housing'' means housing the purpose of which is to 
        facilitate the movement of individuals and families 
        experiencing homelessness to permanent housing within 
        24 months or such longer period as the Secretary 
        determines necessary.
          (30) Unified funding agency.--The term ``unified 
        funding agency'' means a collaborative applicant that 
        performs the duties described in section 402(g).
          (31) Underserved populations.--The term ``underserved 
        populations'' includes populations underserved because 
        of geographic location, underserved racial and ethnic 
        populations, populations underserved because of special 
        needs (such as language barriers, disabilities, 
        alienage status, or age), and any other population 
        determined to be underserved by the Secretary, as 
        appropriate.
          (32) Victim service provider.--The term ``victim 
        service provider'' means a private nonprofit 
        organization whose primary mission is to provide 
        services to victims of domestic violence, dating 
        violence, sexual assault, or stalking. Such term 
        includes rape crisis centers, battered women's 
        shelters, domestic violence transitional housing 
        programs, and other programs.
          (33) Victim services.--The term ``victim services'' 
        means services that assist domestic violence, dating 
        violence, sexual assault, or stalking victims, 
        including services offered by rape crisis centers and 
        domestic violence shelters, and other organizations, 
        with a documented history of effective work concerning 
        domestic violence, dating violence, sexual assault, or 
        stalking.

SEC. 402. COLLABORATIVE APPLICANTS.

  (a) Establishment and Designation.--A collaborative applicant 
shall be established for a geographic area by the relevant 
parties in that geographic area to--
          (1) submit an application for amounts under this 
        subtitle; and
          (2) perform the duties specified in subsection (f) 
        and, if applicable, subsection (g).
  (b) No Requirement to be a Legal Entity.--An entity may be 
established to serve as a collaborative applicant under this 
section without being a legal entity.
  (c) Remedial Action.--If the Secretary finds that a 
collaborative applicant for a geographic area does not meet the 
requirements of this section, or if there is no collaborative 
applicant for a geographic area, the Secretary may take 
remedial action to ensure fair distribution of grant amounts 
under subtitle C to eligible entities within that area. Such 
measures may include designating another body as a 
collaborative applicant, or permitting other eligible entities 
to apply directly for grants.
  (d) Construction.--Nothing in this section shall be construed 
to displace conflict of interest or government fair practices 
laws, or their equivalent, that govern applicants for grant 
amounts under subtitles B and C.
  (e) Appointment of Agent.--
          (1) In general.--Subject to paragraph (2), a 
        collaborative applicant may designate an agent to--
                  (A) apply for a grant under section 422(c);
                  (B) receive and distribute grant funds 
                awarded under subtitle C; and
                  (C) perform other administrative duties.
          (2) Retention of duties.--Any collaborative applicant 
        that designates an agent pursuant to paragraph (1) 
        shall regardless of such designation retain all of its 
        duties and responsibilities under this title.
  (f) Duties.--A collaborative applicant shall--
          (1) design a collaborative process for the 
        development of an application under subtitle C, and for 
        evaluating the outcomes of projects for which funds are 
        awarded under subtitle B, in such a manner as to 
        provide information necessary for the Secretary--
                  (A) to determine compliance with--
                          (i) the program requirements under 
                        section 426; and
                          (ii) the selection criteria described 
                        under section 427; and
                  (B) to establish priorities for funding 
                projects in the geographic area involved;
          (2) participate in the Consolidated Plan for the 
        geographic area served by the collaborative applicant;
          (3) ensure operation of, and consistent participation 
        by, project sponsors in a community-wide homeless 
        management information system (in this subsection 
        referred to as ``HMIS'') that--
                  (A) collects unduplicated counts of 
                individuals and families experiencing 
                homelessness;
                  (B) analyzes patterns of use of assistance 
                provided under subtitles B and C for the 
                geographic area involved;
                  (C) provides information to project sponsors 
                and applicants for needs analyses and funding 
                priorities; and
                  (D) is developed in accordance with standards 
                established by the Secretary, including 
                standards that provide for--
                          (i) encryption of data collected for 
                        purposes of HMIS;
                          (ii) documentation, including keeping 
                        an accurate accounting, proper usage, 
                        and disclosure, of HMIS data;
                          (iii) access to HMIS data by staff, 
                        contractors, law enforcement, and 
                        academic researchers;
                          (iv) rights of persons receiving 
                        services under this title;
                          (v) criminal and civil penalties for 
                        unlawful disclosure of data; and
                          (vi) such other standards as may be 
                        determined necessary by the Secretary; 
                        and
          (4) certify as to whether or not the applicable 
        States and units of general local government are 
        criminalizing homelessness through the enforcement of 
        any laws or policies that prohibit sleeping, feeding, 
        sitting, resting, or lying in public spaces when there 
        are no suitable alternatives, or that result in the 
        destruction of a homeless person's property without due 
        process, or through the selective enforcement of laws 
        or policies against homeless persons.
  (g) Unified Funding.--
          (1) In general.--In addition to the duties described 
        in subsection (f), a collaborative applicant shall 
        receive from the Secretary and distribute to other 
        project sponsors in the applicable geographic area 
        funds for projects to be carried out by such other 
        project sponsors, if--
                  (A) the collaborative applicant--
                          (i) applies to undertake such 
                        collection and distribution 
                        responsibilities in an application 
                        submitted under this subtitle; and
                          (ii) is selected to perform such 
                        responsibilities by the Secretary; or
                  (B) the Secretary designates the 
                collaborative applicant as the unified funding 
                agency in the geographic area, after--
                          (i) a finding by the Secretary that 
                        the applicant--
                                  (I) has the capacity to 
                                perform such responsibilities; 
                                and
                                  (II) would serve the purposes 
                                of this Act as they apply to 
                                the geographic area; and
                          (ii) the Secretary provides the 
                        collaborative applicant with the 
                        technical assistance necessary to 
                        perform such responsibilities as such 
                        assistance is agreed to by the 
                        collaborative applicant.
          (2) Required actions by a unified funding agency.--A 
        collaborative applicant that is either selected or 
        designated as a unified funding agency for a geographic 
        area under paragraph (1) shall--
                  (A) require each project sponsor who is 
                funded by a grant received under subtitle C to 
                establish such fiscal control and fund 
                accounting procedures as may be necessary to 
                assure the proper disbursal of, and accounting 
                for, Federal funds awarded to the project 
                sponsor under subtitle C in order to ensure 
                that all financial transactions carried out 
                under subtitle C are conducted, and records 
                maintained, in accordance with generally 
                accepted accounting principles; and
                  (B) arrange for an annual survey, audit, or 
                evaluation of the financial records of each 
                project carried out by a project sponsor funded 
                by a grant received under subtitle C.
  (h) Conflict of Interest.--No board member of a collaborative 
applicant may participate in decisions of the collaborative 
applicant concerning the award of a grant, or provision of 
other financial benefits, to such member or the organization 
that such member represents.

SEC. [401.] 403. 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] 
        consolidated plan which has been approved by the 
        Secretary in accordance with section 105 of the 
        Cranston-Gonzalez National Affordable Housing Act 
        (referred to in such section as a ``comprehensive 
        housing affordability strategy''), or

           *       *       *       *       *       *       *


SEC. 404. PREVENTING INVOLUNTARY FAMILY SEPARATION.

  (a) In General.--After the expiration of the 2-year period 
that begins upon the date of the enactment of the Homeless 
Emergency Assistance and Rapid Transition to Housing Act of 
2008, and except as provided in subsection (b), any project 
sponsor receiving funds under this title to provide emergency 
shelter, transitional housing, or permanent housing to families 
with children under age 18 shall not deny admission to any 
family based on the age of any child under age 18.
  (b) Exception.--Notwithstanding the requirement under 
subsection (a), project sponsors of transitional housing 
receiving funds under this title may target transitional 
housing resources to families with children of a specific age 
only if the project sponsor--
          (1) operates a transitional housing program that has 
        a primary purpose of implementing an evidence-based 
        practice that requires that housing units be targeted 
        to families with children in a specific age group; and
          (2) provides such assurances, as the Secretary shall 
        require, that an equivalent appropriate alternative 
        living arrangement for the whole family or household 
        unit has been secured.

SEC. 405. TECHNICAL ASSISTANCE.

  (a) In General.--The Secretary shall make available technical 
assistance to private nonprofit organizations and other 
nongovernmental entities, States, metropolitan cities, urban 
counties, and counties that are not urban counties, to 
implement effective planning processes for preventing and 
ending homelessness, to improve their capacity to prepare 
collaborative applications, to prevent the separation of 
families in emergency shelter or other housing programs, and to 
adopt and provide best practices in housing and services for 
persons experiencing homeless.
  (b) Reservation.--The Secretary shall reserve not more than 1 
percent of the funds made available for any fiscal year for 
carrying out subtitles B and C, to provide technical assistance 
under subsection (a).

SEC. [402.] 406. DISCHARGE COORDINATION POLICY.

  The Secretary may not provide a grant under this title for 
any governmental entity serving as an applicant unless the 
applicant agrees to develop and implement, to the maximum 
extent practicable and where appropriate, policies and 
protocols for the discharge of persons from publicly funded 
institutions or systems of care (such as health care 
facilities, foster care or other youth facilities, or 
correction programs and institutions) in order to prevent such 
discharge from immediately resulting in homelessness for such 
persons.

SEC. 407. PROTECTION OF PERSONALLY IDENTIFYING INFORMATION BY VICTIM 
                    SERVICE PROVIDERS.

  In the course of awarding grants or implementing programs 
under this title, the Secretary shall instruct any victim 
service provider that is a recipient or subgrantee not to 
disclose for purposes of the Homeless Management Information 
System any personally identifying information about any client. 
The Secretary may, after public notice and comment, require or 
ask such recipients and subgrantees to disclose for purposes of 
the Homeless Management Information System non-personally 
identifying information that has been de-identified, encrypted, 
or otherwise encoded. Nothing in this section shall be 
construed to supersede any provision of any Federal, State, or 
local law that provides greater protection than this subsection 
for victims of domestic violence, dating violence, sexual 
assault, or stalking.

SEC. 408. AUTHORIZATION OF APPROPRIATIONS.

  (a) In General.--There are authorized to be appropriated to 
carry out this title $2,200,000,000 for fiscal year 2010 and 
such sums as may be necessary for each of fiscal years 2011, 
2012, and 2013.
  (b) Permanent Housing Renewals.--Of the amounts made 
available pursuant to subsection (a), $595,000,000 for fiscal 
year 2010, $670,000,000 for fiscal year 2011, $745,000,000 for 
fiscal year 2012, and $825,000,000 for fiscal year 2013, shall 
be for renewal for one year of expiring contracts for leasing, 
rental assistance, and operating costs for permanent housing.

             [Subtitle B--Emergency Shelter Grants Program]

Subtitle B--Emergency Solutions Grants Program

           *       *       *       *       *       *       *


[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 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. 412. GRANT ASSISTANCE.

  The Secretary shall make grants to States and local 
governments (and to private nonprofit organizations providing 
assistance to persons experiencing homelessness or at risk of 
homelessness, in the case of grants made with reallocated 
amounts) for the purpose of carrying out activities described 
in section 415.

SEC. 413. AMOUNT AND ALLOCATION OF ASSISTANCE.

  (a) In General.--Of the amount made available to carry out 
this title for a fiscal year, not including the amounts made 
available under section 408(b), the Secretary shall allocate 
nationally 20 percent of such amount for activities described 
in section 415. The Secretary shall be required to certify that 
such allocation will not adversely affect the renewal of 
existing projects under this subtitle and subtitle C for those 
individuals or families who are homeless.
  (b) Allocation.--An entity that receives a grant under 
section 412, and serves an area that includes 1 or more 
geographic areas (or portions of such areas) served by 
collaborative applicants that submit applications under 
subtitle C, shall allocate the funds made available through the 
grant to carry out activities described in section 415, in 
consultation with the collaborative applicants.

SEC. [413.] 414. ALLOCATION AND DISTRIBUTION OF ASSISTANCE.

  (a) * * *

           *       *       *       *       *       *       *

  (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] amounts appropriated under section 408 and made 
available 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).

           *       *       *       *       *       *       *

  (f) Reduction of Funds for Criminalizing Homelessness.--Of 
the amount made available to carry out this title for a fiscal 
year, the Secretary shall reduce the amount of administrative 
funds available by half to any jurisdiction for which a 
collaborative applicant has submitted a certification under 
section 402(f)(4) that the unit of local government has 
criminalized homelessness. The funds shall instead be made 
available to the collaborative applicant for the jurisdiction. 
If no collaborative applicant exists for such jurisdiction, the 
funds shall be made available to the State to carry out this 
title.

[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 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 
                or local government 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.
        Activities that are eligible for assistance under this 
        paragraph shall include assistance to very low-income 
        families who are discharged from publicly funded 
        institutions or systems of care (such as health care 
        facilities, foster care or other youth facilities, or 
        correction programs and institutions). Not more than 30 
        percent of the aggregate amount of all assistance to a 
        State or local government under this subtitle may be 
        used for activities under this paragraph.
  [(b) Waiver Authority.--The Secretary may waive the 20percent 
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. ELIGIBLE ACTIVITIES.

  (a) In General.--Assistance provided under section 412 may be 
used for the following activities:
          (1) The renovation, major rehabilitation, or 
        conversion of buildings to be used as emergency 
        shelters.
          (2) The provision of essential services related to 
        emergency shelter or street outreach, including 
        services concerned with employment, health, education, 
        family support services for homeless youth, substance 
        abuse services, victim services, or mental health 
        services, if--
                  (A) such essential services have not been 
                provided by the local government during any 
                part of the immediately preceding 12-month 
                period or the Secretary determines that the 
                local government is in a severe financial 
                deficit; or
                  (B) the use of assistance under this subtitle 
                would complement the provision of those 
                essential services.
          (3) Maintenance, operation, insurance, provision of 
        utilities, and provision of furnishings related to 
        emergency shelter.
          (4) Provision of rental assistance to provide short-
        term or medium-term housing to homeless individuals or 
        families or individuals or families at risk of 
        homelessness. Such rental assistance may include 
        tenant-based or project-based rental assistance.
          (5) Housing relocation or stabilization services for 
        homeless individuals or families or individuals or 
        families at risk of homelessness, including housing 
        search, mediation or outreach to property owners, legal 
        services, credit repair, providing security or utility 
        deposits, utility payments, rental assistance for a 
        final month at a location, assistance with moving 
        costs, or other activities that are effective at--
                  (A) stabilizing individuals and families in 
                their current housing; or
                  (B) quickly moving such individuals and 
                families to other permanent housing.
  (b) Maximum Allocation for Emergency Shelter Activities.--A 
grantee of assistance provided under section 412 for any fiscal 
year may not use an amount of such assistance for activities 
described in paragraphs (1) through (3) of subsection (a) that 
exceeds the greater of--
          (1) 50 percent of the aggregate amount of such 
        assistance provided for the grantee for such fiscal 
        year; or
          (2) the amount expended by such grantee for such 
        activities during fiscal year most recently completed 
        before the effective date under section 503 of the 
        Homeless Emergency Assistance and Rapid Transition to 
        Housing Act of 2008.

SEC. [415.] 416. RESPONSIBILITIES OF RECIPIENTS.

  (a) * * *

           *       *       *       *       *       *       *

  (f) Participation in HMIS.--The Secretary shall ensure that 
recipients of funds under this subtitle ensure the consistent 
participation by emergency shelters and homelessness prevention 
and rehousing programs in any applicable community-wide 
homeless management information system.

SEC. [416.] 417. ADMINISTRATIVE PROVISIONS.

  (a) * * *

           *       *       *       *       *       *       *


[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] 10 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, 
        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 of 2000, 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).
          [(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.
          [(7) Management information system.--A grant for the 
        costs of implementing and operating management 
        information systems for purposes of collecting 
        unduplicated counts of homeless people and analyzing 
        patterns of use of assistance funded under this Act.
          [(8) Confidentiality.--
                  [(A) Victim service providers.--In the course 
                of awarding grants or implementing programs 
                under this subsection, the Secretary shall 
                instruct any victim service provider that is a 
                recipient or subgrantee not to disclose for 
                purposes of a Homeless Management Information 
                System personally identifying information about 
                any client. The Secretary may, after public 
                notice and comment, require or ask such 
                recipients and subgrantees to disclose for 
                purposes of a Homeless Management Information 
                System non-personally identifying data that has 
                been de-identified, encrypted, or otherwise 
                encoded. Nothing in this section shall be 
                construed to supersede any provision of any 
                Federal, State, or local law that provides 
                greater protection than this paragraph for 
                victims of domestic violence, dating violence, 
                sexual assault, or stalking.
                  [(B) Definitions.--
                          [(i) Personally identifying 
                        information or personal information.--
                        The term ``personally identifying 
                        information'' or ``personal 
                        information'' means individually 
                        identifying information for or about an 
                        individual including information likely 
                        to disclose the location of a victim of 
                        domestic violence, dating violence, 
                        sexual assault, or stalking, 
                        including--
                                  [(I) a first and last name;
                                  [(II) a home or other 
                                physical address;
                                  [(III) contact information 
                                (including a postal, e-mail or 
                                Internet protocol address, or 
                                telephone or facsimile number);
                                  [(IV) a social security 
                                number; and
                                  [(V) any other information, 
                                including date of birth, racial 
                                or ethnic background, or 
                                religious affiliation, that, in 
                                combination with any other non-
                                personally identifying 
                                information would serve to 
                                identify any individual.
                          [(ii) Victim service provider.--The 
                        term ``victim service provider'' or 
                        ``victim service providers'' means a 
                        nonprofit, nongovernmental organization 
                        including rape crisis centers, battered 
                        women's shelters, domestic violence 
                        transitional housing programs, and 
                        other programs whose primary mission is 
                        to provide services to victims of 
                        domestic violence, dating violence, 
                        sexual assault, or stalking.
  [(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.]

                 Subtitle C--Continuum of Care Program

SEC. 421. PURPOSES.

  The purposes of this subtitle are--
          (1) to promote community-wide commitment to the goal 
        of ending homelessness;
          (2) to provide funding for efforts by nonprofit 
        providers and State and local governments to quickly 
        rehouse homeless individuals and families while 
        minimizing the trauma and dislocation caused to 
        individuals, families, and communities by homelessness;
          (3) to promote access to, and effective utilization 
        of, mainstream programs described in section 203(a)(7) 
        and programs funded with State or local resources; and
          (4) to optimize self-sufficiency among individuals 
        and families experiencing homelessness.

SEC. 422. CONTINUUM OF CARE APPLICATIONS AND GRANTS.

  (a) Projects.--The Secretary shall award grants, on a 
competitive basis, and using the selection criteria described 
in section 427, to carry out eligible activities under this 
subtitle for projects that meet the program requirements under 
section 426, either by directly awarding funds to project 
sponsors or by awarding funds to unified funding agencies.
  (b) Notification of Funding Availability.--The Secretary 
shall release a notification of funding availability for grants 
awarded under this subtitle for a fiscal year not later than 3 
months after the date of the enactment of the appropriate Act 
making appropriations for the Department of Housing and Urban 
Development for such fiscal year.
  (c) Applications.--
          (1) Submission to the secretary.--To be eligible to 
        receive a grant under subsection (a), a project sponsor 
        or unified funding agency in a geographic area shall 
        submit an application to the Secretary at such time and 
        in such manner as the Secretary may require, and 
        containing such information as the Secretary determines 
        necessary--
                  (A) to determine compliance with the program 
                requirements and selection criteria under this 
                subtitle; and
                  (B) to establish priorities for funding 
                projects in the geographic area.
          (2) Announcement of awards.--
                  (A) In general.--Except as provided in 
                subparagraph (B), the Secretary shall announce, 
                within 5 months after the last date for the 
                submission of applications described in this 
                subsection for a fiscal year, the grants 
                conditionally awarded under subsection (a) for 
                that fiscal year.
                  (B) Transition.--For a period of up to 2 
                years beginning after the effective date under 
                section 503 of the Homeless Emergency 
                Assistance and Rapid Transition to Housing Act 
                of 2008, the Secretary shall announce, within 6 
                months after the last date for the submission 
                of applications described in this subsection 
                for a fiscal year, the grants conditionally 
                awarded under subsection (a) for that fiscal 
                year.
  (d) Obligation, Distribution, and Utilization of Funds.--
          (1) Requirements for obligation.--
                  (A) In general.--Not later than 9 months 
                after the announcement referred to in 
                subsection (c)(2), each recipient or project 
                sponsor shall meet all requirements for the 
                obligation of those funds, including site 
                control, matching funds, and environmental 
                review requirements, except as provided in 
                subparagraphs (B) and (C).
                  (B) Acquisition, rehabilitation, or 
                construction.--Not later than 24 months after 
                the announcement referred to in subsection 
                (c)(2), each recipient or project sponsor 
                seeking the obligation of funds for acquisition 
                of housing, rehabilitation of housing, or 
                construction of new housing for a grant 
                announced under subsection (c)(2) shall meet 
                all requirements for the obligation of those 
                funds, including site control, matching funds, 
                and environmental review requirements.
                  (C) Extensions.--At the discretion of the 
                Secretary, and in compelling circumstances, the 
                Secretary may extend the date by which a 
                recipient or project sponsor shall meet the 
                requirements described in subparagraphs (A) and 
                (B) if the Secretary determines that compliance 
                with the requirements was delayed due to 
                factors beyond the reasonable control of the 
                recipient or project sponsor. Such factors may 
                include difficulties in obtaining site control 
                for a proposed project, completing the process 
                of obtaining secure financing for the project, 
                obtaining approvals from State or local 
                governments, or completing the technical 
                submission requirements for the project.
          (2) Obligation.--Not later than 45 days after a 
        recipient or project sponsor meets the requirements 
        described in paragraph (1), the Secretary shall 
        obligate the funds for the grant involved.
          (3) Distribution.--A recipient that receives funds 
        through such a grant--
                  (A) shall distribute the funds to project 
                sponsors (in advance of expenditures by the 
                project sponsors); and
                  (B) shall distribute the appropriate portion 
                of the funds to a project sponsor not later 
                than 45 days after receiving a request for such 
                distribution from the project sponsor.
          (4) Expenditure of funds.--The Secretary may 
        establish a date by which funds made available through 
        a grant announced under subsection (c)(2) for a 
        homeless assistance project shall be entirely expended 
        by the recipient or project sponsors involved. The date 
        established under this paragraph shall not occur before 
        the expiration of the 24-month period beginning on the 
        date that funds are obligated for activities described 
        under paragraphs (1) or (2) of section 423(a). The 
        Secretary shall recapture the funds not expended by 
        such date. The Secretary shall reallocate the funds for 
        another homeless assistance and prevention project that 
        meets the requirements of this subtitle to be carried 
        out, if possible and appropriate, in the same 
        geographic area as the area served through the original 
        grant.
  (e) Renewal Funding for Unsuccessful Applicants.--The 
Secretary may renew funding for a specific project previously 
funded under this subtitle that the Secretary determines meets 
the purposes of this subtitle, and was included as part of a 
total application that met the criteria of subsection (c), even 
if the application was not selected to receive grant 
assistance. The Secretary may renew the funding for a period of 
not more than 1 year, and under such conditions as the 
Secretary determines to be appropriate.
  (f) Considerations in Determining Renewal Funding.--When 
providing renewal funding for leasing, operating costs, or 
rental assistance for permanent housing, the Secretary shall 
make adjustments proportional to increases in the fair market 
rents in the geographic area.
  (g) More Than 1 Application for a Geographic Area.--If more 
than 1 collaborative applicant applies for funds for a 
geographic area, the Secretary shall award funds to the 
collaborative applicant with the highest score based on the 
selection criteria set forth in section 427.
  (h) Coordination with Low Income Housing Credit.--Assistance 
under this subtitle is intended to facilitate the utilization 
of Low Income Housing Credits under section 42 of the Internal 
Revenue Code of 1986.
  (i) Appeals.--
          (1) In general.--The Secretary shall establish a 
        timely appeal procedure for grant amounts awarded or 
        denied under this subtitle pursuant to a collaborative 
        application or solo application for funding.
          (2) Process.--The Secretary shall ensure that the 
        procedure permits appeals submitted by entities 
        carrying out homeless housing and services projects 
        (including emergency shelters and homelessness 
        prevention programs), and all other applicants under 
        this subtitle.
  (j) Solo Applicants.--A solo applicant may submit an 
application to the Secretary for a grant under subsection (a) 
and be awarded such grant on the same basis as such grants are 
awarded to other applicants based on the criteria described in 
section 427, but only if the Secretary determines that the solo 
applicant has attempted to participate in the continuum of care 
process but was not permitted to participate in a reasonable 
manner. The Secretary may award such grants directly to such 
applicants in a manner determined to be appropriate by the 
Secretary.
  (k) Flexibility to Serve Persons Defined as Homeless under 
Other Federal Laws.--
          (1) In general.--A collaborative applicant may use up 
        to 10 percent of funds awarded under title III 
        (continuum of care funding) for any of the types of 
        eligible activities specified in paragraphs (1) through 
        (7) of section 423(a) to serve families with children 
        and youth defined as homeless under other Federal 
        statutes, provided that the applicant demonstrates that 
        the use of such funds is of an equal or greater 
        priority or is equally or more cost effective in 
        meeting the overall goals and objectives of the plan 
        submitted under section 427(b)(1)(B), especially with 
        respect to children and unaccompanied youth.
          (2) Limitations.--The 10 percent limitation under 
        paragraph (1) shall not apply to collaborative 
        applicants in which the rate of homelessness, as 
        calculated under section 427(b)(3), is less than one-
        tenth of 1 percent of total population.

SEC. 423. ELIGIBLE ACTIVITIES.

  (a) In General.--Grants awarded under section 422 to 
qualified applicants shall be used to carry out projects that 
serve homeless individuals or families that consist of one or 
more of the following eligible activities:
          (1) Construction of new housing units to provide 
        transitional or permanent housing.
          (2) Acquisition or rehabilitation of a structure to 
        provide transitional or permanent housing, other than 
        emergency shelter, or to provide supportive services.
          (3) Leasing of property, or portions of property, not 
        owned by the recipient or project sponsor involved, for 
        use in providing transitional or permanent housing, or 
        providing supportive services.
          (4) Provision of rental assistance to provide 
        transitional or permanent housing to eligible persons. 
        The rental assistance may include tenant-based, 
        project-based, or sponsor-based rental assistance. 
        Project-based rental assistance, sponsor-based rental 
        assistance, and operating cost assistance contracts 
        carried out by project sponsors receiving grants under 
        this section may, at the discretion of the applicant 
        and the project sponsor, have an initial term of 15 
        years, with assistance for the first 5 years paid with 
        funds authorized for appropriation under this Act, and 
        assistance for the remainder of the term treated as a 
        renewal of an expiring contract as provided in section 
        408(b). Project-based rental assistance may include 
        rental assistance to preserve existing permanent 
        supportive housing for homeless individuals and 
        families.
          (5) Payment of operating costs for housing units 
        assisted under this subtitle or for the preservation of 
        housing that will serve homeless individuals and 
        families and for which another form of assistance is 
        expiring or otherwise no longer available.
          (6) Supportive services for individuals and families 
        who are currently homeless, who have been homeless in 
        the prior six months but are currently residing in 
        permanent housing, or who were previously homeless and 
        are currently residing in permanent supportive housing.
          (7) Provision of rehousing services, including 
        housing search, mediation or outreach to property 
        owners, credit repair, providing security or utility 
        deposits, rental assistance for a final month at a 
        location, assistance with moving costs, or other 
        activities that--
                  (A) are effective at moving homeless 
                individuals and families immediately into 
                housing; or
                  (B) may benefit individuals and families who 
                in the prior 6 months have been homeless, but 
                are currently residing in permanent housing.
          (8) In the case of a collaborative applicant that is 
        a legal entity, performance of the duties described 
        under section 402(f)(3).
          (9) Operation of, participation in, and ensuring 
        consistent participation by project sponsors in, a 
        community-wide homeless management information system.
          (10) In the case of a collaborative applicant that is 
        a legal entity, payment of administrative costs related 
        to meeting the requirements described in paragraphs (1) 
        and (2) of section 402(f), for which the collaborative 
        applicant may use not more than 3 percent of the total 
        funds made available in the geographic area under this 
        subtitle for such costs.
          (11) In the case of a collaborative applicant that is 
        a unified funding agency under section 402(g), payment 
        of administrative costs related to meeting the 
        requirements of that section, for which the unified 
        funding agency may use not more than 3 percent of the 
        total funds made available in the geographic area under 
        this subtitle for such costs, in addition to funds used 
        under paragraph (10).
          (12) Payment of administrative costs to project 
        sponsors, for which each project sponsor may use not 
        more than 10 percent of the total funds made available 
        to that project sponsor through this subtitle for such 
        costs.
  (b) Minimum Grant Terms.--The Secretary may impose minimum 
grant terms of up to 5 years for new projects providing 
permanent housing.
  (c) Use Restrictions.--
          (1) Acquisition, rehabilitation, and new 
        construction.--A project that consists of activities 
        described in paragraph (1) or (2) of subsection (a) 
        shall be operated for the purpose specified in the 
        application submitted for the project under section 422 
        for not less than 20 years.
          (2) Other activities.--A project that consists of 
        activities described in any of paragraphs (3) through 
        (12) of subsection (a) shall be operated for the 
        purpose specified in the application submitted for the 
        project under section 422 for the duration of the grant 
        period involved.
          (3) Conversion.--If the recipient or project sponsor 
        carrying out a project that provides transitional or 
        permanent housing submits a request to the Secretary to 
        carry out instead a project for the direct benefit of 
        low-income persons, and the Secretary determines that 
        the initial project is no longer needed to provide 
        transitional or permanent housing, the Secretary may 
        approve the project described in the request and 
        authorize the recipient or project sponsor to carry out 
        that project.
  (d) Repayment of Assistance and Prevention of Undue 
Benefits.--
          (1) Repayment.--If a recipient or project sponsor 
        receives assistance under section 422 to carry out a 
        project that consists of activities described in 
        paragraph (1) or (2) of subsection (a) and the project 
        ceases to provide transitional or permanent housing--
                  (A) earlier than 10 years after operation of 
                the project begins, the Secretary shall require 
                the recipient or project sponsor to repay 100 
                percent of the assistance; or
                  (B) not earlier than 10 years, but earlier 
                than 20 years, after operation of the project 
                begins, the Secretary shall require the 
                recipient or project sponsor to repay 10 
                percent of the assistance for each of the years 
                in the 20-year period for which the project 
                fails to provide that housing.
          (2) Prevention of undue benefits.--Except as provided 
        in paragraph (3), if any property is used for a project 
        that receives assistance under subsection (a) and 
        consists of activities described in paragraph (1) or 
        (2) of subsection (a), and the sale or other 
        disposition of the property occurs before the 
        expiration of the 20-year period beginning on the date 
        that operation of the project begins, the recipient or 
        project sponsor who received the assistance shall 
        comply with such terms and conditions as the Secretary 
        may prescribe to prevent the recipient or project 
        sponsor from unduly benefitting from such sale or 
        disposition.
          (3) Exception.--A recipient or project sponsor shall 
        not be required to make the repayments, and comply with 
        the terms and conditions, required under paragraph (1) 
        or (2) if--
                  (A) the sale or disposition of the property 
                used for the project results in the use of the 
                property for the direct benefit of very low-
                income persons;
                  (B) all of the proceeds of the sale or 
                disposition are used to provide transitional or 
                permanent housing meeting the requirements of 
                this subtitle;
                  (C) project-based rental assistance or 
                operating cost assistance from any Federal 
                program or an equivalent State or local program 
                is no longer made available and the project is 
                meeting applicable performance standards, 
                provided that the portion of the project that 
                had benefitted from such assistance continues 
                to meet the tenant income and rent restrictions 
                for low-income units under section 42(g) of the 
                Internal Revenue Code of 1986; or
                  (D) there are no individuals and families in 
                the geographic area who are homeless, in which 
                case the project may serve individuals and 
                families at risk of homelessness.
  (e) Staff Training.--The Secretary may allow reasonable costs 
associated with staff training to be included as part of the 
activities described in subsection (a).
  (f) Eligibility for Permanent Housing.--Any project that 
receives assistance under subsection (a) and that provides 
project-based or sponsor-based permanent housing for homeless 
individuals or families with a disability, including projects 
that meet the requirements of subsection (a) and subsection 
(d)(2)(A) of section 428 may also serve individuals who had 
previously met the requirements for such project prior to 
moving into a different permanent housing project.
  (g) Administration of Rental Assistance.--Provision of 
permanent housing rental assistance shall be administered by a 
State, unit of general local government, or public housing 
agency.

SEC. 424. INCENTIVES FOR HIGH-PERFORMING COMMUNITIES.

  (a) Designation as a High-Performing Community.--
          (1) In general.--The Secretary shall designate, on an 
        annual basis, which collaborative applicants represent 
        high-performing communities.
          (2) Consideration.--In determining whether to 
        designate a collaborative applicant as a high-
        performing community under paragraph (1), the Secretary 
        shall establish criteria to ensure that the 
        requirements described under paragraphs (1)(B) and 
        (2)(B) of subsection (d) are measured by comparing 
        homeless individuals and families under similar 
        circumstances, in order to encourage projects in the 
        geographic area to serve homeless individuals and 
        families with more severe barriers to housing 
        stability.
          (3) 2-year phase in.--In each of the first 2 years 
        after the effective date under section 503 of the 
        Homeless Emergency Assistance and Rapid Transition to 
        Housing Act of 2008, the Secretary shall designate not 
        more than 10 collaborative applicants as high-
        performing communities.
          (4) Excess of qualified applicants.--If, during the 
        2-year period described under paragraph (2), more than 
        10 collaborative applicants could qualify to be 
        designated as high-performing communities, the 
        Secretary shall designate the 10 that have, in the 
        discretion of the Secretary, the best performance based 
        on the criteria described under subsection (d).
          (5) Time limit on designation.--The designation of 
        any collaborative applicant as a high-performing 
        community under this subsection shall be effective only 
        for the year in which such designation is made. The 
        Secretary, on an annual basis, may renew any such 
        designation.
  (b) Application.--
          (1) In general.--A collaborative applicant seeking 
        designation as a high-performing community under 
        subsection (a) shall submit an application to the 
        Secretary at such time, and in such manner as the 
        Secretary may require.
          (2) Content of application.--In any application 
        submitted under paragraph (1), a collaborative 
        applicant shall include in such application--
                  (A) a report showing how any money received 
                under this subtitle in the preceding year was 
                expended; and
                  (B) information that such applicant can meet 
                the requirements described under subsection 
                (d).
          (3) Publication of application.--The Secretary 
        shall--
                  (A) publish any report or information 
                submitted in an application under this section 
                in the geographic area represented by the 
                collaborative applicant; and
                  (B) seek comments from the public as to 
                whether the collaborative applicant seeking 
                designation as a high-performing community 
                meets the requirements described under 
                subsection (d).
  (c) Use of Funds.--Funds awarded under section 422(a) to a 
project sponsor who is located in a high-performing community 
may be used--
          (1) for any of the eligible activities described in 
        section 423; or
          (2) for any of the eligible activities described in 
        paragraphs (4) and (5) of section 415(a).
  (d) Definition of High-Performing Community.--For purposes of 
this section, the term ``high-performing community'' means a 
geographic area that demonstrates through reliable data that 
all five of the following requirements are met for that 
geographic area:
          (1) Term of homelessness.--The mean length of 
        episodes of homelessness for that geographic area--
                  (A) is less than 20 days; or
                  (B) for individuals and families in similar 
                circumstances in the preceding year was at 
                least 10 percent less than in the year before.
          (2) Families leaving homelessness.--Of individuals 
        and families--
                  (A) who leave homelessness, fewer than 5 
                percent of such individuals and families become 
                homeless again at any time within the next 2 
                years; or
                  (B) in similar circumstances who leave 
                homelessness, the percentage of such 
                individuals and families who become homeless 
                again within the next 2 years has decreased by 
                at least 20 percent from the preceding year.
          (3) Community action.--The communities that compose 
        the geographic area have--
                  (A) actively encouraged homeless individuals 
                and families to participate in homeless 
                assistance services available in that 
                geographic area; and
                  (B) included each homeless individual or 
                family who sought homeless assistance services 
                in the data system used by that community for 
                determining compliance with this subsection.
          (4) Effectiveness of previous activities.--If 
        recipients in the geographic area have used funding 
        awarded under section 422(a) for eligible activities 
        described under section 415(a) in previous years based 
        on the authority granted under subsection (c), that 
        such activities were effective at reducing the number 
        of individuals and families who became homeless in that 
        community.
          (5) Flexibility to serve persons defined as homeless 
        under other federal laws.--With respect to 
        collaborative applicants exercising the authority under 
        section 422(k) to serve homeless families with children 
        and youth defined as homeless under other Federal 
        statutes, effectiveness in achieving the goals and 
        outcomes identified in subsection 427(b)(1)(F) 
        according to such standards as the Secretary shall 
        promulgate.
  (e) Cooperation among Entities.--A collaborative applicant 
designated as a high-performing community under this section 
shall cooperate with the Secretary in distributing information 
about successful efforts within the geographic area represented 
by the collaborative applicant to reduce homelessness.

           *       *       *       *       *       *       *


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.]
  (a) Site Control.--The Secretary shall require that each 
application include reasonable assurances that the applicant 
will own or have control of a site for the proposed project not 
later than the expiration of the 12-month period beginning upon 
notification of an award for grant assistance, unless the 
application proposes providing supportive housing assistance 
under section 423(a)(3) or housing that will eventually be 
owned or controlled by the families and individuals served. An 
applicant may obtain ownership or control of a suitable site 
different from the site specified in the application. If any 
recipient or project sponsor 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) Required Agreements.--The Secretary may not provide 
assistance for a proposed project under this subtitle unless 
the collaborative applicant involved agrees--
          (1) to ensure the operation of the project in 
        accordance with the provisions of this subtitle;
          (2) to monitor and report to the Secretary the 
        progress of the project;
          (3) to ensure, to the maximum extent practicable, 
        that individuals and families experiencing homelessness 
        are involved, through employment, provision of 
        volunteer services, or otherwise, in constructing, 
        rehabilitating, maintaining, and operating facilities 
        for the project and in providing supportive services 
        for the project;
          (4) to require certification from all project 
        sponsors that--
                  (A) they will maintain the confidentiality of 
                records pertaining to any individual or family 
                provided family violence prevention or 
                treatment services through the project;
                  (B) that the address or location of any 
                family violence shelter project assisted under 
                this subtitle will not be made public, except 
                with written authorization of the person 
                responsible for the operation of such project;
                  (C) they will establish policies and 
                practices that are consistent with, and do not 
                restrict the exercise of rights provided by, 
                subtitle B of title VII, and other laws 
                relating to the provision of educational and 
                related services to individuals and families 
                experiencing homelessness;
                  (D) in the case of programs that provide 
                housing or services to families, they will 
                designate a staff person to be responsible for 
                ensuring that children being served in the 
                program are enrolled in school and connected to 
                appropriate services in the community, 
                including early childhood programs such as Head 
                Start, part C of the Individuals with 
                Disabilities Education Act, and programs 
                authorized under subtitle B of title VII of 
                this Act (42 U.S.C. 11431 et seq.); and
                  (E) they will provide data and reports as 
                required by the Secretary pursuant to the Act;
          (5) if a collaborative applicant is a unified funding 
        agency under section 402(g) and receives funds under 
        subtitle C to carry out the payment of administrative 
        costs described in section 423(a)(11), to establish 
        such fiscal control and fund accounting procedures as 
        may be necessary to assure the proper disbursal of, and 
        accounting for, such funds in order to ensure that all 
        financial transactions carried out with such funds are 
        conducted, and records maintained, in accordance with 
        generally accepted accounting principles;
          (6) to monitor and report to the Secretary the 
        provision of matching funds as required by section 430;
          (7) to take the educational needs of children into 
        account when families are placed in emergency or 
        transitional shelter and will, to the maximum extent 
        practicable, place families with children as close as 
        possible to their school of origin so as not to disrupt 
        such children's education; and
          (8) 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)] (c) 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] recipient or project sponsor 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)] (d) 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)] (e) Participation of Homeless Individuals.--The 
Secretary shall, by regulation, require each [recipient] 
recipient or project sponsor 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] recipient or project 
sponsor, 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)] (f) 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)] (g) 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. SELECTION CRITERIA.

  (a) In General.--The Secretary shall award funds to 
recipients through a national competition between geographic 
areas based on criteria established by the Secretary.
  (b) Required Criteria.--
          (1) In general.--The criteria established under 
        subsection (a) shall include--
                  (A) the previous performance of the recipient 
                regarding homelessness, including performance 
                related to funds provided under section 412 
                (except that recipients applying from 
                geographic areas where no funds have been 
                awarded under this subtitle, or under subtitles 
                C, D, E, or F of title IV of this Act, as in 
                effect prior to the date of the enactment of 
                the Homeless Emergency Assistance and Rapid 
                Transition to Housing Act of 2008, shall 
                receive full credit for performance under this 
                subparagraph), measured by criteria that shall 
                be announced by the Secretary, that shall take 
                into account barriers faced by individual 
                homeless people, and that shall include--
                          (i) the length of time individuals 
                        and families remain homeless;
                          (ii) the extent to which individuals 
                        and families who leave homelessness 
                        experience additional spells of 
                        homelessness;
                          (iii) the thoroughness of grantees in 
                        the geographic area in reaching 
                        homeless individuals and families;
                          (iv) overall reduction in the number 
                        of homeless individuals and families;
                          (v) jobs and income growth for 
                        homeless individuals and families;
                          (vi) success at reducing the number 
                        of individuals and families who become 
                        homeless;
                          (vii) other accomplishments by the 
                        recipient related to reducing 
                        homelessness; and
                          (viii) for collaborative applicants 
                        that have exercised the authority under 
                        section 422(k) to serve families with 
                        children and youth defined as homeless 
                        under other Federal statutes, success 
                        in achieving the goals and outcomes 
                        identified in section 427(b)(1)(F);
                  (B) the plan of the recipient, which shall 
                describe--
                          (i) how the number of individuals and 
                        families who become homeless will be 
                        reduced in the community;
                          (ii) how the length of time that 
                        individuals and families remain 
                        homeless will be reduced;
                          (iii) how the recipient will 
                        collaborate with local education 
                        authorities to assist in the 
                        identification of individuals and 
                        families who become or remain homeless 
                        and are informed of their eligibility 
                        for services under subtitle B of title 
                        VII of this Act (42 U.S.C. 11431 et 
                        seq.);
                          (iv) the extent to which the 
                        recipient will--
                                  (I) address the needs of all 
                                relevant subpopulations;
                                  (II) incorporate 
                                comprehensive strategies for 
                                reducing homelessness, 
                                including the interventions 
                                referred to in section 428(d);
                                  (III) set quantifiable 
                                performance measures;
                                  (IV) set timelines for 
                                completion of specific tasks;
                                  (V) identify specific funding 
                                sources for planned activities; 
                                and
                                  (VI) identify an individual 
                                or body responsible for 
                                overseeing implementation of 
                                specific strategies; and
                          (v) whether the recipient proposes to 
                        exercise authority to use funds under 
                        section 422(k), and if so, how the 
                        recipient will achieve the goals and 
                        outcomes identified in section 
                        427(b)(1)(F);
                  (C) the methodology of the recipient used to 
                determine the priority for funding local 
                projects under section 422(c)(1), including the 
                extent to which the priority-setting process--
                          (i) uses periodically collected 
                        information and analysis to determine 
                        the extent to which each project has 
                        resulted in rapid return to permanent 
                        housing for those served by the 
                        project, taking into account the 
                        severity of barriers faced by the 
                        people the project serves;
                          (ii) considers the full range of 
                        opinions from individuals or entities 
                        with knowledge of homelessness in the 
                        geographic area or an interest in 
                        preventing or ending homelessness in 
                        the geographic area;
                          (iii) is based on objective criteria 
                        that have been publicly announced by 
                        the recipient; and
                          (iv) is open to proposals from 
                        entities that have not previously 
                        received funds under this subtitle;
                  (D) the extent to which the amount of 
                assistance to be provided under this subtitle 
                to the recipient will be supplemented with 
                resources from other public and private 
                sources, including mainstream programs 
                identified by the Government Accountability 
                Office in the two reports described in section 
                203(a)(7);
                  (E) demonstrated coordination by the 
                recipient with the other Federal, State, local, 
                private, and other entities serving individuals 
                and families experiencing homelessness and at 
                risk of homelessness in the planning and 
                operation of projects;
                  (F) for collaborative applicants exercising 
                the authority under section 422(k) to serve 
                homeless families with children and youth 
                defined as homeless under other Federal 
                statutes, program goals and outcomes, which 
                shall include--
                          (i) preventing homelessness among the 
                        subset of such families with children 
                        and youth who are at highest risk of 
                        becoming homeless, as such term is 
                        defined for purposes of this title; or
                          (ii) achieving independent living in 
                        permanent housing among such families 
                        with children and youth, especially 
                        those who have a history of doubled-up 
                        and other temporary housing situations 
                        or are living in a temporary housing 
                        situation due to lack of available and 
                        appropriate emergency shelter, through 
                        the provision of eligible assistance 
                        that directly contributes to achieving 
                        such results including assistance to 
                        address chronic disabilities, chronic 
                        physical health or mental health 
                        conditions, substance addiction, 
                        histories of domestic violence or 
                        childhood abuse, or multiple barriers 
                        to employment; and
                  (G) such other factors as the Secretary 
                determines to be appropriate to carry out this 
                subtitle in an effective and efficient manner.
          (2) Additional criteria.--In addition to the criteria 
        required under paragraph (1), the criteria established 
        under paragraph (1) shall also include the need within 
        the geographic area for homeless services, determined 
        as follows and under the following conditions:
                  (A) Notice.--The Secretary shall inform each 
                collaborative applicant, at a time concurrent 
                with the release of the notice of funding 
                availability for the grants, of the pro rata 
                estimated grant amount under this subtitle for 
                the geographic area represented by the 
                collaborative applicant.
                  (B) Amount.--
                          (i) Basis.--Such estimated grant 
                        amount shall be based on a percentage 
                        of the total funds available, or 
                        estimated to be available, to carry out 
                        this subtitle for any fiscal year that 
                        is equal to the percentage of the total 
                        amount available for section 106 of the 
                        Housing and Community Development Act 
                        of 1974 (42 U.S.C. 5306) for the prior 
                        fiscal year that
                                  (I) was allocated to all 
                                metropolitan cities and urban 
                                counties within the geographic 
                                area represented by the 
                                collaborative applicant; or
                                  (II) would have been 
                                distributed to all counties 
                                within such geographic area 
                                that are not urban counties, if 
                                the 30 percent portion of the 
                                allocation to the State 
                                involved (as described in 
                                subsection (d)(1) of that 
                                section 106) for that year had 
                                been distributed among the 
                                counties that are not urban 
                                counties in the State in 
                                accordance with the formula 
                                specified in that subsection 
                                (with references in that 
                                subsection to nonentitlement 
                                areas considered to be 
                                references to those counties).
                          (ii) Adjustment.--In computing the 
                        estimated grant amount, the Secretary 
                        shall adjust the estimated grant amount 
                        determined pursuant to clause (i) to 
                        ensure that--
                                  (I) 75 percent of the total 
                                funds available, or estimated 
                                to be available, to carry out 
                                this subtitle for any fiscal 
                                year are allocated to the 
                                metropolitan cities and urban 
                                counties that received a direct 
                                allocation of funds under 
                                section 413 for the prior 
                                fiscal year; and
                                  (II) 25 percent of the total 
                                funds available, or estimated 
                                to be available, to carry out 
                                this subtitle for any fiscal 
                                year are allocated--
                                          (aa) to the 
                                        metropolitan cities and 
                                        urban counties that did 
                                        not receive a direct 
                                        allocation of funds 
                                        under section 413 for 
                                        the prior fiscal year; 
                                        and
                                          (bb) to counties that 
                                        are not urban counties.
                          (iii) Combinations or consortia.--For 
                        any collaborative applicant that 
                        represents a combination or consortium 
                        of cities or counties, the estimated 
                        grant amount shall be the sum of the 
                        estimated grant amounts for the cities 
                        or counties represented by the 
                        collaborative applicant.
          (3) Homelessness counts.--The Secretary shall not 
        require that communities conduct an actual count of 
        homeless people other than those described in 
        paragraphs (1) through (4) of section 103(a) of this 
        Act (42 U.S.C. 11302(a)).
  (c) Adjustments.--The Secretary may adjust the formula 
described in subsection (b)(2) as necessary--
          (1) to ensure that each collaborative applicant has 
        sufficient funding to renew all qualified projects for 
        at least one year; and
          (2) to ensure that collaborative applicants are not 
        discouraged from replacing renewal projects with new 
        projects that the collaborative applicant determines 
        will better be able to meet the purposes of this Act.

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

  (a) Minimum Allocation for Permanent Housing for Homeless 
Individuals and Families with Disabilities.--
          (1) In general.--From the amounts made available to 
        carry out this subtitle for a fiscal year, a portion 
        equal to not less than 30 percent of the sums made 
        available under section 408, not including amounts 
        described in section 408(b), shall be used for new 
        permanent housing for homeless individuals with 
        disabilities and homeless families that include such an 
        individual who is an adult or a minor head of household 
        if no adult is present in the household.
          (2) Calculation.--In calculating the portion of the 
        amount described in paragraph (1) that is used for 
        activities that are described in paragraph (1), the 
        Secretary shall not count funds made available to renew 
        contracts for existing projects under section 408(b).
          (3) Adjustments.--The 30 percent figure in paragraph 
        (1) shall be reduced as follows:
                  (A) Proportionately based on need under 
                section 427(b)(2) in geographic areas for which 
                subsection (e) applies in regard to subsection 
                (d)(2)(A); and
                  (B) by two percentage points for every three 
                percentage points above 35 percent of the 
                amount of funding provided under subtitle B and 
                this subtitle that is needed to renew existing 
                grants for one year, other than those provided 
                for under section 429.
          (4) Termination.--The requirement established in 
        paragraph (1) shall terminate upon a finding by the 
        Secretary that since the beginning of 2001 at least 
        150,000 new units of permanent housing for homeless 
        individuals and families with disabilities have been 
        funded under this subtitle.
  (b) Set-Aside for Permanent Housing for Homeless Families 
with Children.--From the amounts made available to carry out 
this subtitle for a fiscal year, a portion equal to not less 
than 10 percent of the sums made available to carry out 
subtitle B and this subtitle for that fiscal year shall be used 
to provide or secure permanent housing for homeless families 
with children.
  (c) Treatment of Amounts for Permanent or Transitional 
Housing.--Nothing in this Act may be construed to establish a 
limit on the amount of funding that an applicant may request 
under this subtitle for acquisition, construction, or 
rehabilitation activities for the development of permanent 
housing or transitional housing.
  (d) Incentives for Proven Strategies.--
          (1) In general.--The Secretary shall provide bonuses 
        or other incentives to geographic areas for using 
        funding under this subtitle for activities that have 
        been proven to be effective at reducing homelessness 
        generally, reducing homelessness for a specific 
        subpopulation, or achieving homeless prevention and 
        independent living goals as set forth in section 
        427(b)(1)(F).
          (2) Rule of construction.--For purposes of this 
        subsection, activities that have been proven to be 
        effective at reducing homelessness generally or 
        reducing homelessness for a specific subpopulation 
        includes--
                  (A) permanent supportive housing for 
                chronically homeless individuals and families;
                  (B) for homeless families, rapid rehousing 
                services, short-term flexible subsidies to 
                overcome barriers to rehousing, support 
                services concentrating on improving incomes to 
                pay rent, coupled with performance measures 
                emphasizing rapid and permanent rehousing and 
                with leveraging funding from mainstream family 
                service systems such as Temporary Assistance 
                for Needy Families and Child Welfare services; 
                and
                  (C) any other activity determined by the 
                Secretary, based on research and after notice 
                and comment to the public, to have been proven 
                effective at reducing homelessness generally, 
                reducing homelessness for a specific 
                subpopulation, or achieving homeless prevention 
                and independent living goals as set forth in 
                section 427(b)(1)(F).
          (3) Balance of incentives for proven strategies.--To 
        the extent practicable, in providing bonuses or 
        incentives for proven strategies, the Secretary shall 
        seek to maintain a balance among strategies targeting 
        homeless individuals, families, and other 
        subpopulations. The Secretary shall not implement 
        bonuses or incentives that specifically discourage 
        collaborative applicants from exercising their 
        flexibility to serve families with children and youth 
        defined as homeless under other Federal statutes.
  (e) Incentives for Successful Implementation of Proven 
Strategies.--If any geographic area demonstrates that it has 
fully implemented any of the activities described in subsection 
(d) for all homeless individuals and families or for all 
members of subpopulations for whom such activities are 
targeted, that geographic area shall receive the bonus or 
incentive provided under subsection (d), but may use such bonus 
or incentive for any eligible activity under either section 423 
or paragraphs (4) and (5) of section 415(a) for homeless people 
generally or for the relevant subpopulation.

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

  (a) In General.--Renewal of permanent housing contracts, as 
provided under section 408(b), may be funded either under the 
appropriations account for this title or may be funded under 
the section 8 project-based rental assistance account, except 
that renewal under the project-based rental assistance account 
shall be contingent on sufficient funding in such account for 
the full year renewal of all project-based contracts expiring 
in such year.
  (b) Renewals.--The sums made available under section 408(b) 
shall be available for the renewal of contracts in the case of 
tenant-based assistance, successive one-year terms, and in the 
case of project-based assistance, successive terms of up to 15 
years at the discretion of the applicant or project sponsor and 
subject to the availability of annual appropriations, for 
rental assistance and housing operation costs associated with 
permanent housing projects funded under this subtitle, or under 
subtitle C or F (as in effect on the day before the effective 
date under section 503 of the Homeless Emergency Assistance and 
Rapid Transition to Housing Act of 2008). The Secretary shall 
determine whether to renew a contract for such a permanent 
housing project on the basis of certification by the 
collaborative applicant for the geographic area that--
          (1) there is a demonstrated need for the project; and
          (2) the project complies with program requirements 
        and appropriate standards of housing quality and 
        habitability, as determined by the Secretary.
  (c) Construction.--Nothing in this section shall be construed 
as prohibiting the Secretary from renewing contracts under this 
subtitle in accordance with criteria set forth in a provision 
of this subtitle other than this section.

SEC. 430. MATCHING FUNDING.

  (a) In General.--A collaborative applicant in a geographic 
area in which funds are awarded under this subtitle shall 
specify contributions from any source other than a grant 
awarded under this subtitle, including renewal funding of 
projects assisted under subtitles C, D, and F of this title as 
in effect before the effective date under section 503 of the 
Homeless Emergency Assistance and Rapid Transition to Housing 
Act of 2008, that shall be made available in the geographic 
area in an amount equal to not less than 25 percent of the 
funds provided to recipients in the geographic area, except 
that grants for leasing shall not be subject to any match 
requirement.
  (b) Limitations on in-Kind Match.--The cash value of services 
provided to the residents or clients of a project sponsor by an 
entity other than the project sponsor may count toward the 
contributions in subsection (a) only when documented by a 
memorandum of understanding between the project sponsor and the 
other entity that such services will be provided.
  (c) Countable Activities.--The contributions required under 
subsection (a) may consist of--
          (1) funding for any eligible activity described under 
        section 423; and
          (2) subject to subsection (b), in-kind provision of 
        services of any eligible activity described under 
        section 423.

SEC. 431. APPEAL PROCEDURE.

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

SEC. [427.] 432. 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.] 433. 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 for such 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 of the 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 
applications under 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 a 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.
  [(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 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, 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. ENVIRONMENTAL REVIEW.

  [For purposes of environmental review, assistance and 
projects under this title shall be treated as assistance for 
special projects that are subject to section 305(c) of the 
Multifamily Housing Property Disposition Reform Act of 1994, 
and shall be subject to the regulations issued by the Secretary 
to implement such section.

                 [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. TERM OF CONTRACT WITH OWNER OR LESSOR.

  [An applicant under this subtitle may enter into a contract 
with the owner or lessor of a property that receives rental 
assistance under this subtitle having a term of not more than 
15 years, subject to the availability of sufficient funds 
provided in appropriation Acts for the purpose of renewing 
expiring contracts for assistance payments. Such contract may, 
at the election of the applicant and owner or lessor, specify 
that such contract shall be extended for renewal terms of not 
more than 15 years each, subject to the availability of 
sufficient such appropriated funds.

[SEC. 463. 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 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.
          [(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. 464. 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 
464 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 the 
contract. 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 
464 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; except that, in the case of any project for which equity 
is provided through any low-income housing tax credit pursuant 
to section 42 of the Internal Revenue Code of 1986 (26 U.S.C. 
42), if an expenditure of such amount for each unit (including 
the prorated share of such work) is required to make the 
structure decent, safe, and sanitary, and the owner agrees to 
reach initial closing on permanent financing from such other 
sources within two years and agrees to carry out the 
rehabilitation with resources other than assistance under this 
subtitle within 60 months of notification of grant approval, 
the contract shall be for a term of 10 years (except that such 
period may be extended by up to 1 year by the Secretary, which 
extension shall be granted unless the Secretary determines that 
the sponsor is primarily responsible for the failure to meet 
such deadline).
  [(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 
464 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 
464 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 464 
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 464 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]

         Subtitle D--Rural Housing Stability Assistance Program

SEC. 491. [RURAL HOMELESSNESS GRANT PROGRAM.] RURAL HOUSING STABILITY 
                    GRANT PROGRAM.

  (a) Establishment.--The Secretary of Housing and Urban 
Development shall establish and carry out a [rural homelessness 
grant program] rural housing stability grant program. In 
carrying out the program, the Secretary may award grants to 
eligible organizations in lieu of grants under subtitle C 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.]
          (1) rehousing or improving the housing situations of 
        individuals and families who are homeless or at risk of 
        homelessness in the geographic area;
          (2) stabilizing the housing of individuals and 
        families who are in imminent danger of losing housing; 
        and
          (3) improving the ability of the lowest-income 
        residents of the community to afford stable housing.
  (b) Use of Funds.--
          (1) In general.--An eligible organization may use a 
        grant awarded under subsection (a) to provide, in rural 
        areas--
                  (A) * * *

           *       *       *       *       *       *       *

                  [(D) transitional housing;]
                  (D) construction of new housing units to 
                provide transitional or permanent housing to 
                homeless individuals and families and 
                individuals and families at risk of 
                homelessness;
                  (E) acquisition or rehabilitation of a 
                structure to provide supportive services or to 
                provide transitional or permanent housing, 
                other than emergency shelter, to homeless 
                individuals and families and individuals and 
                families at risk of homelessness;
                  (F) leasing of property, or portions of 
                property, not owned by the recipient or project 
                sponsor involved, for use in providing 
                transitional or permanent housing to homeless 
                individuals and families and individuals and 
                families at risk of homelessness, or providing 
                supportive services to such homeless and at-
                risk individuals and families;
                  (G) provision of rental assistance to provide 
                transitional or permanent housing to homeless 
                individuals and families and individuals and 
                families at risk of homelessness, such rental 
                assistance may include tenant-based or project-
                based rental assistance;
                  (H) payment of operating costs for housing 
                units assisted under this title;
                  [(E)] (I) rehabilitation and repairs such as 
                insulation, window repair, door repair, roof 
                repair, and repairs that are necessary to make 
                premises habitable;
                  [(F)] (J) development of comprehensive and 
                coordinated support services that use and 
                supplement, as needed, community networks of 
                services, including--
                          (i) * * *

           *       *       *       *       *       *       *

                  [(G)] (K) 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 Actand 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] transferred 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] transferred under 
                subsection (l)(1) for the fiscal year for 
                grants to eligible organizations serving 
                communities that have populations of less than 
                10,000.

           *       *       *       *       *       *       *

          (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] 
        transferred 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) * * *

           *       *       *       *       *       *       *

          (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] a 
        description of how individuals and families who are 
        homeless or who have the lowest incomes in the 
        community will be involved by the organization 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[.];
          (7) a description of consultations that took place 
        within the community to ascertain the most important 
        uses for funding under this section, including the 
        involvement of potential beneficiaries of the project; 
        and
          (8) a description of the extent and nature of 
        homelessness and of the worst housing situations in the 
        community.

           *       *       *       *       *       *       *

  [(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.]
  (f) Matching Funding.--
          (1) In general.--An organization eligible to receive 
        a grant under subsection (a) shall specify matching 
        contributions from any source other than a grant 
        awarded under this subtitle, that shall be made 
        available in the geographic area in an amount equal to 
        not less than 25 percent of the funds provided to 
        recipients in the geographic area, except that grants 
        for leasing shall not be subject to any match 
        requirement.
          (2) Limitations on in-kind match.--The cash value of 
        services provided to the beneficiaries or clients of an 
        eligible organization by an entity other than the 
        organization may count toward the contributions in 
        paragraph (1) only when documented by a memorandum of 
        understanding between the organization and the other 
        entity that such services will be provided.
          (3) Countable activities.--The contributions required 
        under paragraph (1) may consist of--
                  (A) funding for any eligible activity 
                described under subsection (b); and
                  (B) subject to paragraph (2), in-kind 
                provision of services of any eligible activity 
                described under subsection (b).
  (g) Selection Criteria.--The Secretary shall establish 
criteria for selecting recipients of grants under subsection 
(a), including--
          (1) the participation of potential beneficiaries of 
        the project in assessing the need for, and importance 
        of, the project in the community;
          (2) the degree to which the project addresses the 
        most harmful housing situations present in the 
        community;
          (3) the degree of collaboration with others in the 
        community to meet the goals described in subsection 
        (a);
          (4) the performance of the organization in improving 
        housing situations, taking account of the severity of 
        barriers of individuals and families served by the 
        organization;
          (5) for organizations that have previously received 
        funding under this section, the extent of improvement 
        in homelessness and the worst housing situations in the 
        community since such funding began;
          (6) the need for such funds, as determined by the 
        formula established under section 427(b)(2); and
          (7) any other relevant criteria as determined by the 
        Secretary.
  (h) Evaluation.--
          (1) In general.--[The] Not later than 18 months after 
        funding is first made available pursuant to the 
        amendments made by title IV of the Homeless Emergency 
        Assistance and Rapid Transition to Housing Act of 2008, 
        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] meeting the 
                goals described in subsection (a) in the area 
                served; and
                  (B) determine the types of assistance needed 
                to [address homelessness in rural areas] meet 
                the goals described in subsection (a) in rural 
                areas.
          (2) Report.--[The] Not later than 24 months after 
        funding is first made available pursuant to the 
        amendment made by title IV of the Homeless Emergency 
        Assistance and Rapid Transition to Housing Act of 2008, 
        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] meet the goals described in 
        subsection (a).

           *       *       *       *       *       *       *

  (k) Definitions.--
          (1) Program.--The term ``program'' means the [rural 
        homelessness grant program] rural housing stability 
        grant program established under this section.
          (2) Rural area; rural community.--The terms ``rural 
        area'' and ``rural community'' mean--
                  (A) * * *
                  (B) any area or community, respectively, that 
                is--
                          (i) * * *
                          (ii) located in a [rural census 
                        tract] census tract where at least 75 
                        percent of the population is rural.

           *       *       *       *       *       *       *

  (l) [Authorization of Appropriations] Program Funding.--
          [(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.]
          (1) In general.--The Secretary shall determine the 
        total amount of funding attributable under section 
        427(b)(2) to meet the needs of any geographic area in 
        the Nation that applies for funding under this section. 
        The Secretary shall transfer any amounts determined 
        under this subsection from the Community Homeless 
        Assistance Program and consolidate such transferred 
        amounts for grants under this section, except that the 
        Secretary shall transfer an amount not less than 5 
        percent of the amount available under this subtitle for 
        grants under this section.

           *       *       *       *       *       *       *

  (m) Division of Funds.--
          (1) Agreement among geographic areas.--If the 
        Secretary receives an application or applications to 
        provide services in a geographic area under this 
        subtitle, and also under subtitle C, the Secretary 
        shall consult with all applicants from the geographic 
        area to determine whether all agree to proceed under 
        either this subtitle or under subtitle C.
          (2) Default if no agreement.--If no agreement is 
        reached under paragraph (1), the Secretary shall 
        proceed under this subtitle or under subtitle C, 
        depending on which results in the largest total grant 
        funding to the geographic area.

           *       *       *       *       *       *       *


                            ADDITIONAL VIEWS

    The undersigned Members of the Committee acknowledge the 
significant work that the Chairman, Ranking Member, and other 
Members and staff have done to address many of the concerns we 
raised about addressing the needs of homeless unaccompanied 
youth, children, and their families in H.R. 840, a bill 
introduced by the late Rep. Julia Carson as well as Rep. Geoff 
Davis.
    There are inconsistencies in the definition of homeless for 
programs administered by the Department of Housing and Urban 
Development (HUD) as compared to those administered by the 
Departments of Education, Justice, and Human Services. In the 
education section of the McKinney-Vento Homeless Assistance 
Act, the Individuals with Disabilities Education Act (IDEA), 
and the Head Start Act, the same homeless definition is used. 
The Runaway and Homeless Youth Act program uses a similar 
definition. However, the housing component of the McKinney-
Vento Homeless Assistance Act uses a different definition, 
which excludes a majority of the unaccompanied youth, children, 
and families recognized as homeless by non-HUD federal homeless 
programs.
    As a result, hundreds of thousands of homeless students, 
homeless and disabled children, homeless infants, and homeless 
children running away from domestic violence, unsafe housing, 
or unstable living conditions are denied HUD homeless housing 
and services.
    Several witnesses, including Dr. Ellen Bassuk, an Associate 
Professor of Psychiatry at Harvard Medical School, testified 
before our Committee that many homeless children who are 
currently excluded from HUD's homeless definition are prone to 
health and developmental problems. Dr. Bassuk said that there 
is documented evidence that almost 90 percent of homeless 
families end up doubled-up, which results in severe 
overcrowding and dangerous situations. The homeless children in 
these families are at significant risk of physical and sexual 
abuse, have seen people shot and killed, or have had their own 
lives threatened. Highly mobile homeless students suffer 
academically, are less likely to graduate, are sick more than 
the average child, and are more likely to have behavior 
problems.
    Homelessness among children is only becoming more 
pervasive. A study conducted by First Focus and the Brookings 
Institute determined that almost 2 million children will be 
affected by the foreclosure crises. Many of these children will 
become homeless, but, tragically, they will not qualify for HUD 
homeless housing assistance or services.
    H.R. 840, as introduced, would reconcile the definitions of 
homeless used among HUD and the other federal programs that 
serve homeless unaccompanied youth, children, and families. In 
addition, as introduced, the bill would recognize as homeless 
many individuals and families that are not recognized as 
homeless by these other federal programs.
    For many months, we have worked with Members of the 
Committee, staff, and government and non-government 
organizations representing various homeless constituencies to 
craft a new HUD definition of homeless that would allow 
homeless unaccompanied youth, children, and their families 
served by other federal programs to also be recognized by HUD 
as homeless and therefore qualify for HUD homeless housing and 
services.
    On July, 31, 2008, during the Committee's consideration of 
H.R. 840, Rep. Biggert and Rep. Davis offered an amendment to 
allow all children and youth considered homeless by four other 
federal programs to be considered homeless by HUD. They 
withdrew the amendment because of an agreement with the 
Chairman that they would: (1) continue to work on language to 
amend HUD's definition of homeless as the bill moved out of 
Committee toward full House consideration; and (2) send a joint 
letter requesting that GAO examine the issue of homeless 
definition discrepancies and related matters.
    Between July 31, 2008 and today, we and our staff have 
worked with the Chairman and Housing and Community Opportunity 
Subcommittee Chairwoman Waters, Education and Labor Committee 
Chairman Miller and Ranking Member McKeon, and their staff on a 
letter to GAO and new language to expand HUD's definition of 
homeless to include more homeless unaccompanied youth, 
children, and their families.
    On September 23, 2008, we joined the above-mentioned 
Members and sent a letter to GAO. In recent days, we offered 
language to Senate and House Members and staff negotiating the 
final language of H.R. 840 and S. 1518 to include homeless 
children, unaccompanied youth, and their families in HUD's 
definition of homeless. We are pleased that Senate and House 
Members have agreed to include the following language as part 
of HUD's definition of homeless:
    Unaccompanied youth and homeless families with children and 
youth defined as homeless under other Federal statutes who--
    (A) have experienced a long term period without living 
independently in permanent housing,
    (B) have experienced persistent instability as measured by 
frequent moves over such period, and
    (C) can be expected to continue in such status for an 
extended period of time because of chronic disabilities, 
chronic physical health or mental health conditions, substance 
addiction, histories of domestic violence or childhood abuse, 
the presence of a child or youth with a disability, or multiple 
barriers to employment.
    It is our hope that by expanding HUD's definition of 
homeless in this way, local, homeless service providers will 
have the flexibility to provide homeless housing and services 
to unaccompanied youth and children in involuntary and unstable 
shared living arrangements, such as those living temporarily in 
motels or hotels or ``couch surfing'' from house to house. The 
ultimate goal is to break the cycle of poverty, violence, and 
homelessness in our country by providing homeless unaccompanied 
youth and children with the opportunity to qualify for safe and 
stable housing so that they have a better chance of being 
healthy, performing better in school, and having a chance for a 
brighter future.

                                   Judy Biggert.
                                   Geoff Davis.
                                   Shelley Moore Capito.

                                  
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