GROUP HOMES FOR RECOVERING SUBSTANCE ABUSERS.

SEC. 2036. GROUP HOMES FOR RECOVERING SUBSTANCE ABUSERS. Subpart I of part B of title XIX of the Public Health Service Act (42 U.S.C. 300x) is amended by inserting after section 1916 the following new section: “group homes for recovering substance abusers“Sec. 1916A. (a) For fiscal year 1989, the Secretary may not make payments under section 1914 unless the State involved agrees— “(1) to establish, directly or through the provision of a grant or contract to a nonprofit private entity, a revolving fund to make loans for the costs of establishing programs for the provision of housing in which individuals recovering from alcohol or drug abuse may reside in groups of not less than 4 individuals; “(2) to ensure that the programs are carried out in accordance with guidelines issued under subsection (c); “(3) to ensure that not less than $100,000 will be available for the revolving fund; “(4) to ensure that each loan made from the revolving fund does not exceed $4000 and that each such loan is repaid to the revolving fund not later than 2 years after the date on which the loan is made; “(5) to ensure that each such loan is repaid through monthly installments and that a reasonable penalty is assessed for each failure to pay such periodic installments by the date specified in the loan agreement involved; and 102 STAT. 4203 “(6) to ensure that such loans are made only to nonprofit private entities agreeing that, in the operation of the program established pursuant to the loan— “(A) the use of alcohol or any illegal drug in the housing provided by the program will be prohibited; “(B) any resident of the housing who violates such prohibition will be expelled from the housing; “(C) the costs of the housing, including fees for rent and utilities, will be paid by the residents of the housing; and “(D) the residents of the housing will, through a majority vote of the residents, otherwise establish policies governing residence in the housing, including the manner in which applications for residence in the housing are approved. “(b) For fiscal year 1990 and subsequent fiscal years, the Secretary may not make payments under section 1914 unless the State involved provides assurances satisfactory to the Secretary that the State has provided for the establishment and ongoing operation of a revolving fund in accordance with subsection (a). “(c) Not later than 90 days after the date of the enactment of the Comprehensive Alcohol Abuse, Drug Abuse, and Mental Health Amendments Act of 1988, the Secretary, acting through the Administrator, shall issue guidelines for the operation of programs described in subsection (a).”.