SUPPORTIVE HOUSING PROGRAM.

SEC. 1403. SUPPORTIVE HOUSING PROGRAM. (a) In General.—Title IV of the Stewart B. McKinney Home-less Assistance Act (42 U.S.C. 11361 et seq.) is amended by striking subtitles C and D and inserting the following new subtitle: “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 106 STAT. 4014supportive housing to homeless persons to enable them to live as independently as possible. “SEC. 422. DEFINITIONS.“For purposes of this subtitle: “(1) The term ‘applicant’ means a State, Indian tribe, metropolitan city, urban county, governmental entity, private non-profit organization, or community mental health association that is a public nonprofit organization, that is eligible to receive assistance under this subtitle and submits an application under section 426(a). “(2) The term ‘disability’ means— “(A) a disability as defined in section 223 of the Social Security Act, “(B) to be determined to have, pursuant to regulations issued by the Secretary, a physical, mental, or emotional impairment which (i) is expected to be of long-continued and indefinite duration, (ii) substantially impedes an individual’s ability to live independently, and (iii) of such a nature that such ability could be improved by more suitable housing conditions, “(C) a developmental disability as defined in section 102 of the Developmental Disabilities Assistance and Bill of Rights Act, or “(D) the disease of acquired immunodeficiency syndrome or any conditions arising from the etiologic agency for acquired immunodeficiency syndrome. Subparagraph (D) shall not be construed to limit eligibility under subparagraphs (A) through (C) or the provisions referred to in subparagraphs (A) through (C). “(3) The term ‘Indian tribe’ has the meaning given the term in section 102(a) of the Housing and Community Development Act of 1974. “(4) The term ‘metropolitan city’ has the meaning given the term in section 102 of the Housing and Community Development Act of 1974. “(5) The term ‘operating costs’ means expenses incurred by a recipient operating supportive housing under this subtitle with respect to— “(A) the administration, maintenance, repair, and security of such housing; “(B) utilities, fuel, furnishings, and equipment for such housing; and “(C) the conducting of the assessment under section 426(c)(2). “(6) The term ‘outpatient health services’ means outpatient health care, outpatient mental health services, outpatient sub-stance 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 106 STAT. 4015 “(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 non-profit 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, includ-106 STAT. 4016ing program recipients under title IV of this Act before the date of the enactment of the Housing and Community Development Act of 1992, may reapply for such assistance or for the renewal of such assistance to continue services funded under prior grants or to provide other services. “(6) Technical assistance.—Technical assistance in carrying out the purposes of this subtitle. “(b) Use Restrictions.— “(1) Acquisition, rehabilitation, and new construction.—Projects assisted under subsection (a) (1) or (2) shall be operated for not less than 20 years for the purpose specified in the application. “(2) Other assistance.—Projects assisted under subsection (a) (3), (4), (5), or (6) (but not under subsection (a) (1) or (2)) shall be operated for the purposes specified in the application for the duration of the period covered by the grant. “(3) Conversion.—If the Secretary determines that a project is no longer needed for use as supportive housing and approves the use of the project for the direct benefit of low- income persons pursuant to a request for such use by the recipient operating the project, the Secretary may authorize the recipient to convert the project to such use. “(c) Repayment of Assistance and Prevention of Undue Benefits.— “(1) Repayment.—The Secretary shall require recipients to repay 100 percent of any assistance received under subsection (a) (1) or (2) if the project ceases to be used as supportive housing within 10 years after the project is placed in service. If such project is used as supportive housing for more than 10 years, the Secretary shall reduce the percentage of the amount required to be repaid by 10 percentage points for each year in excess of 10 that the project is used as supportive housing. “(2) Prevention of undue benefits.—Except as provided in paragraph (3), upon any sale or other disposition of a project assisted under subsection (a) (1) or (2) occurring before the expiration of the 20-year period beginning on the date that the project is placed in service, the recipient shall comply with such terms and conditions as the Secretary may prescribe to prevent the recipient from unduly benefiting from such sale or disposition. “(3) Exception.—A recipient shall not be required to com-ply 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; 106 STAT. 4017 “(B) is permanent housing for homeless persons with disabilities; or “(C) is, or is part of, a particularly innovative project for, or alternative methods of, meeting the immediate and long-term needs of homeless individuals and families. “(b) Transitional Housing.—For purposes of this section, the term ‘transitional housing’ means housing, the purpose of which is to facilitate the movement of homeless individuals and families to permanent housing within 24 months or such longer period as the Secretary determines necessary. The Secretary may deny assistance for housing based on a violation of this subsection only if the Secretary determines that a substantial number of homeless individuals or families have remained in the housing longer than such period. “(c) Permanent Housing for Homeless Persons With Disabilities.—For purposes of this section, the term ‘permanent housing for homeless persons with disabilities’ means community--based housing for homeless persons with disabilities that provides long-term housing and supportive services for not more than— “(1) 8 such persons in a single structure or contiguous structures; “(2) 16 such persons, but only if not more than 20 percent of the units in a structure are designated for such persons; or “(3) more than 16 persons if the applicant demonstrates that local market conditions dictate the development of a large project and such development will achieve the neighborhood integration objectives of the program within the context of the affected community. “(d) Single Room Occupancy Dwellings.—A project may provide supportive housing or supportive services in dwelling units that do not contain bathrooms or kitchen facilities and are appropriate for use as supportive housing or in projects containing some or all such dwelling units. “SEC. 425. SUPPORTIVE SERVICES. “(a) In General.—To the extent practicable, each project shall provide supportive services for residents of the project and homeless persons using the project, which may be designed by the recipient or participants. “(b) Requirements.—Supportive services provided in connection with a project shall address the special needs of individuals (such as homeless persons with disabilities and homeless families with children) intended to be served by a project. “(c) Services.—Supportive services may include such activities as (A) establishing and operating a child care services program for homeless families, (B) establishing and operating an employment assistance program, (C) providing outpatient health services, food, and case management, (D) providing assistance in obtaining permanent housing, employment counseling, and nutritional counseling, (E) providing security arrangements necessary for the protection of residents of supportive housing and for homeless persons using the housing or project, (F) providing assistance in obtaining other Federal, State, and local assistance available for such residents (including mental health benefits, employment counseling, and medical assistance, but not including major medical equipment), and (G) providing other appropriate services. 106 STAT. 4018 “(d) Provision of Services.—Services provided pursuant to this section may be provided directly by the recipient or by contract with other public or private service providers. Such services may be provided to homeless individuals who do not reside in supportive housing. “(e) Coordination With Secretary of Health and Human Services.— “(1) Approval.—Promptly upon receipt of any application for assistance under this subtitle that includes the provision of outpatient health services, the Secretary of Housing and Urban Development shall consult with the Secretary of Health and Human Services with respect to the proposed outpatient health services. If, within 45 days of such consultation, the Secretary of Health and Human Services determines that the proposal for delivery of the outpatient health services does not meet guidelines for determining the appropriateness of such proposed services, the Secretary of Housing and Urban Development may require re submission of the application, and the Secretary of Housing and Urban Development may not approve such portion of the application unless and until such portion has been resubmitted in a form that the Secretary of Health and Human Services determines meets such guide-lines. “(2) Guidelines.—The Secretary of Housing and Urban Development and the Secretary of Health and Human Services shall jointly establish guidelines for determining the appropriateness of proposed outpatient health services under this section. Such guidelines shall include any provisions necessary to enable the Secretary of Housing and Urban Development to meet the time limits under this subtitle for the final selection of applications for assistance. “SEC. 426. PROGRAM REQUIREMENTS. “(a) Applications.— “(1) Form and procedure.—Applications for assistance under this subtitle shall be submitted by applicants in the form and in accordance with the procedures established by the Secretary. The Secretary may not give preference or priority to any application on the basis that the application was submit-ted 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) (I) 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 106 STAT. 4019that 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; 106 STAT. 4020 “(2) to conduct an ongoing assessment of the supportive services required by homeless individuals served by the project and the availability of such services to such individuals; “(3) to provide such residential supervision as the Secretary determines is necessary to facilitate the adequate provision of supportive services to the residents and users of the project; “(4) to monitor and report to the Secretary on the progress of the project; “(5) to develop and implement procedures to ensure (A) the confidentiality of records pertaining to any individual provided family violence prevention or treatment services through any project assisted under this subtitle, and (B) that the address or location of any family violence shelter project assisted under this subtitle will not be made public, except with written authorization of the person or persons responsible for the operation of such project; “(6) to the maximum extent practicable, to involve homeless individuals and families, through employment, volunteer services, or otherwise, in constructing, rehabilitating, maintaining, and operating the project assisted under this subtitle and in providing supportive services for the project; and “(7) to comply with such other terms and conditions as the Secretary may establish to carry out this subtitle in an effective and efficient manner. “(d) Occupancy Charge.—Each homeless individual or family residing in a project providing supportive housing may be required to pay an occupancy charge in an amount determined by the recipient providing the project, which may not exceed the amount deter-mined under section 3(a) of the United States Housing Act of 1937. Occupancy charges paid may be reserved, in whole or in part, to assist residents in moving to permanent housing. “(e) Matching Funding.—Each recipient shall be required to supplement the amount of assistance provided under paragraphs (1) and (2) of section 423(a) with an equal amount of funds from sources other than this subtitle. “(f) Flood Protection Standards.—Flood protection standards applicable to housing acquired, rehabilitated, constructed, or assisted under this subtitle shall be no more restrictive than the standards applicable under Executive Order No. 11988 (May 24, 1977) to the other programs under this title. “(g) Participation of Homeless Individuals.—The Secretary shall, by regulation, require each recipient to provide for the participation of not less than 1 homeless individual or former homeless individual on the board of directors or other equivalent policymaking entity of the recipient, to the extent that such entity considers and makes policies and decisions regarding any project, supportive services, or assistance provided under this subtitle. The Secretary may grant waivers to applicants unable to meet the requirement under the preceding sentence if the applicant agrees to otherwise consult with homeless or formerly homeless individuals in considering and making such policies and decisions. “(h) Limitation on Use of Funds.—No assistance received under this subtitle (or any State or local government funds used to supplement such assistance) may be used to replace other State or local funds previously used, or designated for use, to assist homeless persons. 106 STAT. 4021 “(i) Limitation on Administrative Expenses.—No recipient may use more than 5 percent of a grant received under this subtitle for administrative purposes. “(j) Termination of Assistance.—If an individual or family who receives assistance under this subtitle (not including residents of an emergency shelter) from a recipient violates program requirements, the recipient may terminate assistance in accordance with a formal process established by the recipient that recognizes the rights of individuals receiving such assistance to due process of law, which may include a hearing. “SEC. 427. REGULATIONS.“Not later than the expiration of the 90-day period beginning on the date of the enactment of the Housing and Community Development Act of 1992, the Secretary shall issue interim regulations to carry out this subtitle, which shall take effect upon issuance. The Secretary shall issue final regulations to carry out this subtitle after notice and opportunity for public comment regarding the interim regulations, pursuant to the provisions of section 553 of title 5, United States Code (notwithstanding subsections (a)(2), (b)(B), and (d)(3) of such section). The duration of the period for public comment shall not be less than 60 days, and the final regulations shall be issued not later than the expiration of the 60-day period beginning upon the conclusion of the comment period and shall take effect upon issuance. “SEC. 428. REPORTS TO CONGRESS.“The Secretary shall submit a report to the Congress annually, summarizing the activities carried out under this subtitle and set-ting 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.”. (b) Transition.—Notwithstanding the amendment made by subsection (a), before the date of the effectiveness of the regulations issued under section 427 of the Stewart B. McKinney Homeless 106 STAT. 4022Assistance Act (as amended by subsection (a) of this section) the Secretary may make grants under the provisions of subtitles C and D of the Stewart B. McKinney Homeless Assistance Act, as in effect immediately before the enactment of this Act. Any grants made before such effective date shall be subject to the provisions of such subtitles.