REVISED HOMELESS HOUSING ASSISTANCE PROVISIONS EXCERPT FROM CRANSTON-GONZALEZ NATIONAL AFFORDABLE [Public Law 101-625; 104 Stat. 4331; 42 U.S.C. 11361 et seq.] TITLE VIII-HOUSING FOR PERSONS WITH SPECIAL NEEDS Subtitle C-Supportive Housing for the PART 1-REVISED MCKINNEY ACT SEC. 821. AMENDMENT TO MCKINNEY ACT.1 (a) IN GENERAL.-Title IV of the Stewart B. McKinney Homeless Assistance Act is amended to read as follows: TITLE IV-HOUSING ASSISTANCE "Subtitle A-General Provisions "SEC. 401. PURPOSE. "The purpose of this title is to expand the Federal commitment to alleviate homelessness in this Nation by providing States, Indian tribes, and localities with the resources to "(1) help very low-income families avoid becoming homeless; "(2) meet the emergency shelter needs of homeless persons and families; "(3) provide transitional housing to facilitate the movement of homeless persons and families to independent living; "(4) provide specialized permanent housing for homeless persons who require a supportive living environment; and "(5) provide supportive services to help homeless persons and families lead independent and dignified lives. [42 U.S.C. 11361] "SEC. 402. DEFINITIONS. "For purposes of this title "(1) The term 'assistance' means grants to assist the acquisition, lease, renovation, substantial rehabilitation, operation, or conversion of facilities to assist the homeless, grants for moder 'The amendments made by this section take effect on October 1, 1992, or a later date, as provided in section 823(a) of the Cranston-Gonzalez National Affordable Housing Act. See post, this subtitle. ate rehabilitation, grants for other purposes, and other assistance made eligible under section 405 and subtitle B. "(2) The term 'emergency activities' means supportive services that are provided in an emergency shelter developed in accordance with section 412. "(3) The term 'families' has the same meaning given the term under section 3(b)(2) of the United States Housing Act of 1937. "(4) The term 'grantee' means— "(A) a State or unit of general local government receiving grants from the Secretary under section 403(a); "(B) a group of geographically contiguous local governments that have formed a consortium that, in the determination of the Secretary "(i) has sufficient authority and administrative capability to act on behalf of its member jurisdictions in carrying out the provisions of section 403(a), and "(ii) is comprised only of jurisdictions that have received a formula allocation for the fiscal year, and "(C) for purposes of section 406 and subsections (a), (b), (c), and (f) of section 407, an Indian tribe, Indian housing authority, or a private nonprofit organization receiving a direct grant under section 405. "(5) The term 'person with disabilities' has the same meaning given the term in section 811 of the Cranston-Gonzalez National Affordable Housing Act. "(6) The term 'homeless person with disabilities' means a person with disabilities who is a homeless person within the meaning of section 103, is at risk of becoming a homeless person, or has been a resident of transitional housing carried out pursuant to this Act or the provisions made effective by section 101(g) of Public Law 99-500 or Public Law 99-591. "(7) The term 'locality' means the geographical area within the jurisdiction of a local government. "(8) The term 'operating costs' means expenses incurred by a project sponsor operating any housing assisted under this title with respect to "(A) the administration, maintenance, repair, and security of such housing; and "(B) utilities, fuels, furnishings, and equipment for such housing. "(9) The term 'operating costs' includes expenses incurred by a project sponsor operating transitional housing under this title with respect to "(A) the conducting of the assessment required by section 413(c)(1)(B); and "(B) the provision of supportive services to the residents of such housing. "(10) The term 'outpatient health services' means outpatient health care, outpatient mental health services, outpatient substance abuse services, and case management services. "(11) The term 'private nonprofit organization' means an organization "(A) no part of the net earnings of which inures to the benefit of any member, founder, contributor, or individual; "(B) that has a voluntary board; "(C) that has an accounting system or has designated a fiscal agent in accordance with requirements established by the Secretary; and "(D) that practices nondiscrimination in the provision of assistance. "(12) The term 'project' means a structure or a portion of a structure that is acquired or rehabilitated with assistance provided under this title or with respect to which the Secretary provides technical assistance or annual payments for operating costs. "(13) The term 'project sponsor' means any governmental or private nonprofit organization that "(A) receives assistance from the Secretary or from a grantee under section 403(a), "(B) is approved by the grantee as to financial responsibility, and "(C) is directly responsible for the administration of assistance provided under this title. Each project sponsor shall act as the fiscal agent of the Secretary with respect to assistance provided to such project sponsor under this title. "(14) The term 'Secretary' means the Secretary of Housing and Urban Development. "(15) The term 'State' means a State of the United States, the District of Columbia, and the Commonwealth of Puerto Rico, or any agency or instrumentality thereof that is established pursuant to legislation and designated by the chief executive to act on behalf of the jurisdiction with regard to provisions of this Act. "(16)(A) The term 'supportive services' means assistance designed by a project sponsor that "(i) addresses the special needs of homeless persons, such as deinstitutionalized persons, families with children, persons with mental disabilities, other persons with disabilities, the elderly, and veterans intended to be served by a project; and "(ii) assists in accomplishing the purposes of the different types of housing for the homeless made eligible under this subtitle. "(B) The term includes "(i) food services, child care, substance abuse treatment, assistance in obtaining permanent housing, outpatient health services, employment counseling, nutritional counseling, security arrangements for the protection of residents of facilities to assist the homeless, and such other services essential for maintaining or moving towards independent living as the Secretary determines to be appropriate; and "(ii) assistance to homeless persons in obtaining other Federal, State, and local assistance available for such indi viduals, including public assistance benefits, mental health benefits, employment counseling, and medical assistance. "(C) Such term does not include the provision of major medical equipment. "(D) All or part of the supportive services may be provided directly by the project sponsor or by arrangements with other public or private service providers. "(17) The term 'unit of general local government' means any city, town, township, county, parish, village, or other general purpose subdivision of a State; Guam, the Northern Mariana Islands, the Virgin Islands, American Samoa, the Federated States of Micronesia and Palau, the Marshall Islands, or a general purpose political subdivision thereof; a consortium; and any other territory or possession of the United States. "(18) The term 'consortium' means a group of geographically contiguous local governments that the Secretary determines"(A) has sufficient authority and administrative capability to act on behalf of its member jurisdictions in carrying out the provisions of section 403(a); and "(B) is comprised only of jurisdictions that have received a formula allocation for the fiscal year. "(18) The term 'very low-income families' has the same meaning given the term under section 104 of the CranstonGonzalez National Affordable Housing Act. "(19) The terms 'Indian tribe' and 'Indian housing authority' have the same meanings as in section 3 of the United States Housing Act of 1937. [42 U.S.C. 11362] "SEC. 403. GENERAL AUTHORITY. "(a) GRANTS FOR HOMELESS HOUSING ASSISTANCE. "(A) GRANTS AUTHORIZED.-The Secretary shall, to the extent of amounts approved in appropriations Acts under section 408, make grants to States and units of general local government and to eligible applicants under section 405 in order to (i) carry out activities designed to meet the emergency, transitional, and permanent housing needs of the homeless, (ii) help very low-income families and persons avoid becoming homeless, and (iii) help homeless families and persons make the transition to permanent housing. "(B) STRATEGY REQUIRED.—A jurisdiction shall be eligible to receive a grant only if it has obtained an approved housing strategy (or an approved abbreviated housing strategy) in accordance with section 105 of the Cranston-Gonzalez National Affordable Housing Act. "(C) USE OF PROJECT SPONSORS.-A grantee shall carry out activities authorized under this subsection through contracts with project sponsors, except that a grantee that is a State shall obtain the approval of the unit of general local government for the locality in which a project is to be located prior to entering into such contracts. "(2) ALLOCATION OF RESOURCES.-The amounts approved in appropriations Acts under section 408 shall be allocated in accordance with a formula established under section 404. "(b) ELIGIBLE ACTIVITIES.-Grants under this title shall be available only for approved activities. Approved activities shall include "(1) the provision of assistance to help very low-income families avoid becoming homeless in accordance with section 411; "(2) the development of emergency shelters for the homeless in accordance with section 412; "(3) the development of transitional housing to facilitate the transition of homeless persons to independent living in accordance with section 413; "(4) the development of permanent housing for homeless persons with disabilities in accordance with section 414; "(5) the provision of assistance to help very low-income families who are residing in emergency shelter or transitional housing make the transition to permanent housing in accordance with section 415; and "(6) such other activities that the Secretary develops in cooperation with grantees in accordance with section 416. The Secretary shall establish standards and guidelines for approved activities. The Secretary shall permit grantees to refine and adapt such standards and guidelines for individual projects, where such refinements and adaptations are made necessary by local circumstances. "(c) LIMITATIONS.— "(1) PREVENTION.-A grantee may use not more than 30 percent of grants allocated under subsection (a) for homelessness prevention activities as defined in section 411. "(2) EMERGENCY ACTIVITIES.-A grantee may use not more than 30 percent of the grants allocated in accordance with subsection (a) for emergency activities as defined in section 412. The Secretary may approve a higher limitation if the grantee demonstrates that other approved activities under this subparagraph are already being carried out in the jurisdiction with other resources. "(d) SRO RENOVATION.-The Secretary shall, to the extent of amounts approved in appropriations Acts for the programs authorized under section 421, provide rental assistance to public housing agencies or other contracting agencies for the renovation of single room occupancy dwellings in accordance with subtitle C. [42 U.S.C. 11363] "SEC. 404. ALLOCATION FORMULA. "Subject to section 823(b) of the Cranston-Gonzalez National Affordable Housing Act, the Secretary shall issue regulations establishing an allocation formula, if any, that reflects each jurisdiction's share of the Nation's need for housing assistance for the homeless. [42 U.S.C. 11364] "SEC. 405. DISCRETIONARY ALLOCATION. "(a) IN GENERAL.-In addition to grants otherwise authorized by this title, the Secretary is authorized to make grants to eligible applicants to meet urgent needs of homeless persons that are not |