SUPPLEMENTAL ASSISTANCE.

SEC. 432. SUPPLEMENTAL ASSISTANCE. (a) In General.— The Secretary of Housing and Urban Development is authorized in accordance with the provisions of this subtitle— (1) to provide assistance to cover the costs in excess of assistance provided under the emergency shelter grant program or the supportive housing demonstration program that are required— (A) to meet the special needs of homeless families with children, elderly homeless individuals, or the handicapped; or (B) to facilitate the transfer and utilization of public buildings to assist homeless individuals and families; or (2) to provide comprehensive assistance for particularly innovative programs for, or alternative methods of, meeting the immediate and long-term needs of homeless individuals and families by assisting— 101 STAT. 506 (A) the purchase, lease, renovation, or conversion of facilities to assist the homeless, which facilities shall be safe and sanitary and, when appropriate, meet all applicable State and local housing and building codes and licensing requirements in the jurisdiction in which the facility is located; or (B) the provision of supportive services for homeless individuals. (b) Limitations.— (1) The Secretary may not provide assistance under this subtitle unless the Secretary determines that— (A) the applicant has made reasonable efforts to utilize all available local resources and resources available under the other provisions of this title; and (B) that other resources are not sufficient or are not available to carry out the purpose for which the assistance is being sought. No assistance provided under this subtitle may be used to supplant any non-Federal resources provided with respect to any project. (2) Any advance provided under this subtitle shall be repaid on such terms as may be prescribed by the Secretary when the project ceases to be used to assist homeless individuals in accordance with the provisions of this subtitle. A recipient shall be required to repay 100 percent of the advance if the recipient uses the project to assist homeless individuals for fewer than 10 years following initial occupancy. If the recipient uses the project to assist homeless individuals for more than 10 years, the percentage of the amount that the recipient shall be required to repay shall be reduced by 10 percentage points for each year in excess of 10 that the property is used to assist homeless individuals. A project may continue to be treated as a project to assist homeless individuals for purposes of this paragraph if the Secretary determines that such project is no longer needed to assist homeless individuals and approves the use of such project for the direct benefit of lower income persons. (3) Upon any sale or other disposition of a project acquired, leased, renovated, rehabilitated, or converted with assistance under this subtitle prior to the close of 20 years after the project is placed in service, other than a sale or other disposition resulting in the use of the project for the direct benefit of lower income persons, the recipient shall comply with such terms and conditions as the Secretary shall have prescribed to prevent the recipient from unduly benefiting from the sale or other disposition of the project. (4) Not more than $10,000 of any grant or advance under this subtitle may be used for outpatient health services (excluding the cost of any rehabilitation or conversion). (c) Eligibility.— To receive assistance under this subtitle, a State, metropolitan city, urban county, tribe, or private nonprofit organization shall submit an application to the Secretary in such form and containing such information as the Secretary shall prescribe. (d) Selection.— Assistance may be provided under this subtitle only to an applicant that— (1) has shown a demonstrated commitment to alleviating poverty; 101 STAT. 507 (2) has furnished assurances satisfactory to the Secretary that any property purchased, leased, renovated, or converted with assistance under this subtitle will be operated to assist homeless individuals for not less than 10 years; (3) has the continuing capacity to effectively provide assistance to homeless individuals; and (4) complies with such other requirements for assistance under this section as the Secretary may establish. To the maximum extent practicable, the Secretary shall reserve not less than 50 percent of all funds provided under this section for the support of facilities designed primarily to benefit homeless elderly individuals and homeless families with children (and a portion of such funds shall be used for child care facilities). To the extent practicable, the Secretary shall distribute the funds available to carry out this subtitle equitably across geographic areas. (e) Coordination With Secretary of Health and Human Services.— (1) 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 the Secretary of Health and Human Services determines that the proposal for delivery of outpatient health services does not meet the guidelines described in paragraph (2), the Secretary of Housing and Urban Development may require resubmission of the application. The Secretary of Housing and Urban Development may not approve such portion of the application unless and until it has been resubmitted in a form that the Secretary of Health and Human Services determines meets the guidelines. (2) The Secretary of Housing and Urban Development and the Secretary of Health and Human Services shall jointly establish guidelines for determining under this section the appropriateness of proposed outpatient health services. Such guidelines shall include such provisions as are 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. (f) Limitation on Administrative Expenses.— Not more than 5 percent of a grant or advance made under this section may be expended for administrative expenses.