DEMONSTRATION PROJECTS TO REDUCE NUMBER OF HOMELESS AFDC FAMILIES IN WELFARE HOTELS.

SEC. 903. DEMONSTRATION PROJECTS TO REDUCE NUMBER OF HOMELESS AFDC FAMILIES IN WELFARE HOTELS. (a) In General.— In order to enable States to provide housing for homeless families who are recipients of aid to families with dependent children under a State plan approved under part A of title IV of the Social Security Act in transitional facilities instead of in commercial or similar transient facilities, at least 2 but not more than 3 States may undertake and carry out demonstration projects in accordance with this section. States may use public or private nonprofit agencies in carrying out demonstration projects in accordance with this section. Demonstration projects under this section shall meet such conditions and requirements as the Secretary of Health and Human Services (in this section referred to as the “Secretary”) shall prescribe. (b) Duties of Secretary of Health and Human Services.— The Secretary shall— (1) consider all applications received from States desiring to conduct demonstration projects under this section; (2) transmit to the Comptroller General for review under subsection (e) a copy of each such application received; (3) approve at least 2 but not more than 3 applications involving projects which appear likely to contribute significantly to the achievement of the purpose of this section; and (4) make grants from funds appropriated to carry out this section to each State whose application is so approved to carry out the project that is the subject of the application. (c) Project Requirements.— The Secretary shall not approve an application received from a State for a demonstration project under this section unless the State agency that administers the program of aid to families with dependent children in the State under a State plan approved under part A of title IV of the Social Security Act demonstrates that the project will— (1) provide housing in transitional facilities only to homeless families who are recipients of aid to families with dependent children under the State plan and who reside in commercial or similar transient facilities; (2) permanently reduce the number of rooms used to house homeless families who are recipients of such aid in commercial or similar transient facilities by the number of units made available in transitional facilities in accordance with paragraph (1); and (3) provide that the Federal share of the total amount of cash assistance provided under the project to families residing in transitional facilities plus the total amount of grants made to the State under this section must be less than or equal to the102 STAT. 3259 Federal share of the cost of housing such families in commercial or similar transient facilities (including payments made to cover basic needs and services of such families). (d) Use of Funds.— Each State that receives funds under this section shall use such funds to— (1) rehabilitate or construct transitional facilities which are easily convertible to permanent housing when such facilities are no longer needed as transitional facilities; and (2) provide on-site social services at such facilities. (e) GAO Review of Applications.— Within 90 days after the Comptroller General receives from the Secretary a copy of an application submitted under this section, the Comptroller General shall review such application and report to the Committee on Finance of the Senate and the Committee on Ways and Means of the House of Representatives on whether the Federal share of the total amount of cash assistance to be provided under the project which is the subject of the application to families residing in transitional facilities plus the total amount of grants to be made to the State under this section is less than or equal to the Federal share of the cost of housing such families in commercial or similar transient facilities (including payments made to cover basic needs and services of such families). (f) Authorization of Appropriations.— For grants under this section, there is authorized to be appropriated to the Secretary for the fiscal year 1990 not to exceed $20,000,000, which shall remain available until expended. (g) Definitions.— As used in section 902 and this section: (1) Homeless family.— The term “homeless family” means a dependent child or children and the relatives with whom such child or children are living, who— (A) lack a fixed and regular nighttime address; (B) have a primary residence that is a shelter designed for temporary accommodation, a hotel, or a motel; or (C) are living in a place not designed for, or ordinarily used as, a regular sleeping accommodation. (2) Commercial or similar transient facilities.— The term “commercial or similar transient facilities” means transient accommodations in— (A) a commercial hotel or motel operated by a privately owned for-profit entity; or (B) a similar establishment which is not a transitional facility (whether or not directly operated or contracted for by the State or a political subdivision or by a not-for-profit organization authorized by the State or political subdivision to provide such accommodations). (3) Transitional facility.— The term “transitional facility” means any facility operated by a State or local government or a nonprofit organization which, at a minimum— (A) provides temporary and private sleeping accommodations, and temporary eating and cooking accommodations; and (B) provides services to help families locate and retain permanent housing.