HOMELESSNESS PREVENTION AS AN ELIGIBLE ACTIVITY.

SEC. 423. HOMELESSNESS PREVENTION AS AN ELIGIBLE ACTIVITY. (a) In General.— Section 414(a) of the Stewart B. McKinney Homeless Assistance Act (42 U.S.C. 11374(a)) is amended by adding at the end the following: “(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 eviction 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 102 STAT. 3232 “(D) the assistance will not supplant funding for preexisting homelessness prevention activities from other sources. Activities under this paragraph shall be treated as ‘essential services’ for the purpose of paragraph (2)(B).”. (b) Reporting Requirement.— The Comptroller General of the United States shall conduct a study and report to the Congress not later than I year after the date of the enactment of this Act on various programs to prevent homelessness implemented by grantees, with particular focus on the different methods employed by grantees to determine eligibility for homelessness prevention assistance and restrictions or limitations, if any, imposed under such programs. Such report shall include— (1) an examination of other homelessness prevention programs, including other Federal programs and State and local programs; and (2) recommendations for such legislation as the Comptroller General determines appropriate, including recommendations on how to prevent homelessness as a result of mortgage foreclosures.