SEC. 443. [42 U.S.C. 11402] ENVIRONMENTAL REVIEW.

For purposes of environmental review, assistance and projects under this title shall be treated as assistance for special projects that are subject to section 305(c) of the Multifamily Housing Property Disposition Reform Act of 1994, and shall be subject to the regulations issued by the Secretary to implement such section.

Subtitle F-Shelter Plus Care Program

PART I-GENERAL REQUIREMENTS

SEC. 451. [42 U.S.C. 11403] PURPOSE.

The purpose of the program authorized under this subtitle is to provide rental housing assistance, in connection with supportive services funded from sources other than this subtitle, to homeless persons with disabilities (primarily persons who are seriously mentally ill, have chronic problems with alcohol, drugs, or both, or have acquired immunodeficiency syndrome and related diseases) and the families of such persons.

SEC. 452. [42 U.S.C. 11403a] RENTAL HOUSING ASSISTANCE.

(a) IN GENERAL.-The Secretary is authorized, in accordance with the provisions of this subtitle, to provide rental housing assistance under parts II, III, IV, and V.

(b) FUNDING LIMITATIONS.-To the maximum extent practicable, the Secretary shall reserve not less than 50 percent of all funds provided under this subtitle for homeless individuals who are seriously mentally ill or have chronic problems with alcohol, drugs, or both.

SEC. 453. [42 U.S.C. 11403b] SUPPORTIVE SERVICES REQUIREMENTS. (a) MATCHING FUNDING.

(1) IN GENERAL.-Each recipient shall be required to supplement the assistance provided under this subtitle with an equal amount of funds for supportive services from sources other than this subtitle. Each recipient shall certify to the Secretary its compliance with this paragraph, and shall include with the certification a description of the sources and amounts of such supplemental funds.

(2) DETERMINATION OF MATCHING AMOUNTS.-In calculating the amount of supplemental funds provided under this subtitle, a recipient may include the value of any lease on a building, any salary paid to staff to carry out the program of the recipient, and the value of the time and services contributed by volunteers to carry out the program of the recipient at a rate determined by the Secretary.

(b) RECAPTURE.-If the supportive services and funding for the supportive services required by this section are not provided, the Secretary may recapture any unexpended housing assistance. SEC. 454. [42 U.S.C. 11403c] APPLICATIONS.

(a) IN GENERAL.-An application for rental housing assistance under this subtitle shall be submitted by an applicant in such forms and in accordance with such procedures as the Secretary shall establish.

(b) MINIMUM CONTENTS.-The Secretary shall require that an application identify the need for the assistance in the community to be served and shall contain at a minimum—

(1) a request for housing assistance under part II, III, IV, or V, or a combination, specifying the number of units requested and the amount of necessary budget authority;

(2) a description of the size and characteristics of the population of eligible persons;

(3) an identification of the need for the program in the community to be served;

(4) the identity of the proposed service provider or providers (which may be, or include, the applicant) and a statement of the qualifications of the provider or providers;

(5) a description of the supportive services that the applicant proposes to assure will be available for eligible persons; (6) a description of the resources that are expected to be made available to provide the supportive services required by section 453;

(7) a description of the mechanisms for developing a housing and supportive services plan for each person and for monitoring each person's progress in meeting that plan;

(8) reasonable assurances satisfactory to the Secretary that the supportive services will be provided for the full term of the housing assistance under part II, III, IV, or V, or a combination; and a certification from the applicant that it will fund the supportive services itself if the planned resources do not become available for any reason;

(9) a certification by the public official responsible for submitting the comprehensive housing affordability strategy under section 105 of the Cranston-Gonzalez National Affordable Housing Act that the proposed activities are consistent with the approved housing strategy of the unit of general local government within which housing assistance under this subtitle will be provided;

1 So in law.

(10) a plan for

(A) in the case of rental housing assistance under part II,1 or III, providing housing assistance;

(B) identifying and selecting eligible persons to participate, including a proposed definition of the term "chronic problems with alcohol, other drugs, or both";

(C) coordinating the provision of housing assistance and supportive services;

(D) ensuring that the service providers are providing supportive services adequate to meet the needs of the persons served;

(E) obtaining participation of eligible persons who have previously not been assisted under programs designed to assist the homeless or have been considered not capable of participation in these programs; this plan shall specifically address how homeless persons, as defined in section 103(a)(2)(C), (and the families of such persons) will be brought into the program;

(11) in the case of housing assistance under part V, identification of the specific structures that the recipient is proposing for assistance; and

(12) in the case of housing assistance under part IV, identification of the nonprofit entity that will be the owner or lessor of the property, and identification of the specific structures in which the nonprofit entity proposes to house eligible per

sons.

SEC. 455. [42 U.S.C. 11403d] SELECTION CRITERIA.

(a) IN GENERAL.-The Secretary shall establish selection criteria for a national competition for assistance under this subtitle, which shall include

(1) the ability of the applicant to develop and operate the proposed assisted housing and supportive services program, taking into account the quality of any ongoing program of the applicant;

(2) geographic diversity among the projects to be assisted; (3) the need for a program providing housing assistance and supportive services for eligible persons in the area to be served;

(4) the quality of the proposed program for providing supportive services and housing assistance;

(5) the extent to which the proposed funding for the supportive services is or will be available;

(6) the extent to which the project would meet the needs of the homeless persons proposed to be served by the program; (7) the extent to which the program integrates program recipients into the community served by the program;

(8) the cost-effectiveness of the proposed program; and

(9) such other factors as the Secretary specifies in regulations to be appropriate for purposes of carrying out the program established by this subtitle in an effective and efficient

manner.

(b) FUNDING LIMITATION.-No more than 10 percent of the assistance made available under this subtitle for any fiscal year may be used for programs located within any one unit of general local government.

(c) PARTICIPATION OF HOMELESS INDIVIDUALS.-The Secretary shall, by regulation, require each recipient to provide for the consultation and participation of not less than one 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 housing assisted under this subtitle or services for such housing. The Secretary may grant waivers to recipients unable to meet the requirement under the preceding sentence if the recipient agrees to otherwise consult with homeless or formerly homeless individuals in considering and making such policies and decisions. SEC. 456. [42 U.S.C. 11403e] REQUIRED AGREEMENTS.

The Secretary may not approve assistance under this subtitle unless the applicant agrees

(1) to operate the proposed program in accordance with the provisions of this subtitle;

(2) to conduct an ongoing assessment of the housing assistance and supportive services required by the participants in the program;

(3) to assure the adequate provision of supportive services to the participants in the program;

(4) to comply with such other terms and conditions as the Secretary may establish for purposes of carrying out the program in an effective and efficient manner; and

(5) to the maximum extent practicable, to involve homeless individuals and families, through employment volunteer services, or otherwise, in constructing or rehabilitating housing assisted under this subtitle and in providing services required under this subtitle.

SEC. 457. [42 U.S.C. 11403e-1] HOUSING STANDARDS AND RENT REASONABLENESS.

(a) STANDARDS REQUIRED.-The Secretary shall require that(1) before any assistance may be provided to or on behalf of the person, each unit shall be inspected by the applicant directly or by another entity, including the local public housing agency, to determine that the unit meets the housing quality standards under section 8 of the United States Housing Act of 1937 and that the occupancy charge for the dwelling unit is reasonable; and

(2) the recipient shall make at least annual inspections of each unit during the contract term.

(b) PROHIBITION.-No assistance may be provided for a dwelling unit (1) for which the occupancy charge is not reasonable, or (2) which fails to meet the housing standards, unless the owner promptly corrects the deficiency and the recipient verifies the correction.

SEC. 458. [42 U.S.C. 11403e-2] TENANT RENT.

Each tenant shall pay as rent an amount determined in accordance with the provisions of section 3(a)(1) of the United States Housing Act of 1937.

SEC. 459. [42 U.S.C. 11403e-3] ADMINISTRATIVE FEES.

From amounts made available under appropriations Acts, the Secretary shall make amounts available to pay the entity administering the housing assistance an administrative fee in an amount determined appropriate by the Secretary for the costs of administering the housing assistance.

SEC. 460. [42 U.S.C. 11403e-4] OCCUPANCY.

(a) OCCUPANCY AGREEMENT.-The occupancy agreement between a tenant and an owner of a dwelling unit assisted under this subtitle shall be for at least one month.

(b) VACANCY PAYMENTS.-If an eligible person vacates a dwelling unit assisted under this subtitle before the expiration of the occupancy agreement, no assistance payment may be made with respect to the unit after the month that follows the month during which the unit was vacated, unless it is occupied by another eligible person.

SEC. 461. [42 U.S.C. 11403f] TERMINATION OF ASSISTANCE.

(a) AUTHORITY.-If an eligible individual who receives assistance under this subtitle violates program requirements, the recipi

ent may terminate assistance in accordance with the process established pursuant to subsection (b).

(b) PROCEDURE.-In terminating assistance under this section, the recipient shall provide a formal process that recognizes the rights of individuals receiving such assistance to due process of law.

SEC. 462. [42 U.S.C. 11403g] DEFINITIONS.

For purposes of this subtitle:

(1) The term "acquired immunodeficiency syndrome and related diseases" has the meaning given such term in section 853 of the Cranston-Gonzalez National Affordable Housing Act. (2) The term "applicant" means a State, unit of general local government or public housing agency.

(3) The term "eligible person" means a homeless person with disabilities (primarily persons who are seriously mentally ill, have chronic problems with alcohol, drugs, or both, or have acquired immunodeficiency syndrome and related diseases) and the family of such a person.

[(4) [Repealed.]]

(5) The term "nonprofit organization" has the meaning given such term by section 104 of the Cranston-Gonzalez National Affordable Housing Act, and includes community mental health centers established as public nonprofit organizations.

(6) The term "person with disabilities" has the same meaning given the term in section 811 of the Cranston-Gonzalez National Affordable Housing Act.

(7) The term "public housing agency" has the meaning given such term in section 3(b)(6) of the United States Housing Act of 1937.

(8) The term "recipient" means an applicant approved for participation in the program authorized under this subtitle.

(9) The term "Secretary" means the Secretary of Housing and Urban Development.

(10) The term "seriously mentally ill" means having a severe and persistent mental or emotional impairment that seriously limits a person's ability to live independently.

(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, the Trust Territory of the Pacific Islands, and any other territory or possession of the United States.

(12) The term "supportive services" means assistance that the Secretary determines (A) addresses the special needs of eligible persons; and (B) provides appropriate services or assists such persons in obtaining appropriate services, including health care, mental health services, substance and alcohol abuse services, child care services, case management services, counseling, supervision, education, job training, and other services essential for achieving and maintaining independent living. Inpatient acute hospital care shall not qualify as a supportive service.

(13) The term "unit of general local government" has the meaning given such term in section 102 of the Housing and Community Development Act of 1974.