To amend the McKinney-Vento Homeless Assistance Act to reauthorize the Act, and for other purposes.

September 29, 2005

Mr. REED (for himself, Mr. ALLARD, Ms. COLLINS, Mr. SARBANES, Mr. BOND, Mrs. MURRAY, Mr. CHAFEE, Ms. MIKULSKI, Mr. DODD, Mr. AKAKA, Mr. SCHUMER, Mr. CORZINE, Mrs. CLINTON, and Ms. LANDRIEU) introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs

To amend the McKinney-Vento Homeless Assistance Act to reauthorize the Act, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `Community Partnership to End Homelessness Act of 2005'.

SEC. 2. FINDINGS AND PURPOSE.

Section 102 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11301) is amended to read as follows:

`SEC. 102. FINDINGS AND PURPOSE.

`(a) Findings- Congress finds that--

`(1) the United States faces a crisis of individuals and families who lack basic affordable housing and appropriate shelter;

`(2) assistance from the Federal Government is an important factor in the success of efforts by State and local governments and the private sector to address the problem of homelessness in a comprehensive manner;

`(3) there are several Federal Government programs to assist persons experiencing homelessness, including programs for individuals with disabilities, veterans, children, and youth;

`(4) homeless assistance programs must be evaluated on the basis of their effectiveness in reducing homelessness, transitioning individuals and families to permanent housing and stability, and optimizing their self-sufficiency;

`(5) States and units of general local government receiving Federal block grant and other Federal grant funds must be evaluated on the basis of their effectiveness in--

`(A) implementing plans to appropriately discharge individuals to and from mainstream service systems; and

`(B) reducing barriers to participation in mainstream programs, as identified in--

`(i) a report by the Government Accountability Office entitled `Homelessness: Coordination and Evaluation of Programs Are Essential', issued February 26, 1999; or

`(ii) a report by the Government Accountability Office entitled `Homelessness: Barriers to Using Mainstream Programs', issued July 6, 2000;

`(6) an effective plan for reducing homelessness should provide a comprehensive housing system (including permanent housing and, as needed, transitional housing) that recognizes that, while some individuals and families experiencing homelessness attain economic viability and independence utilizing transitional housing and then permanent housing, others can reenter society directly and optimize self-sufficiency through acquiring permanent housing;

`(7) supportive housing activities include the provision of permanent housing or transitional housing, and appropriate supportive services, in an environment that can meet the short-term or long-term needs of persons experiencing homelessness as they reintegrate into mainstream society;

`(8) homeless housing and supportive services programs within a community are most effective when they are developed and operated as part of an inclusive, collaborative, locally driven homeless planning process that involves as decision makers persons experiencing homelessness, advocates for persons experiencing homelessness, service organizations, government officials, business persons, neighborhood advocates, and other community members;

`(9) homelessness should be treated as a symptom of many neighborhood, community, and system problems, whose remedies require a comprehensive approach integrating all available resources;

`(10) there are many private sector entities, particularly nonprofit organizations, that have successfully operated outcome-effective homeless programs;

`(11) Federal homeless assistance should supplement other public and private funding provided by communities for housing and supportive services for low-income households;

`(12) the Federal Government has a responsibility to establish partnerships with State and local governments and private sector entities to address comprehensively the problems of homelessness; and

`(13) the results of Federal programs targeted for persons experiencing homelessness have been positive.

`(b) Purpose- It is the purpose of this Act--

`(1) to create a unified and performance-based process for allocating and administering funds under title IV;

`(2) to encourage comprehensive, collaborative local planning of housing and services programs for persons experiencing homelessness;

`(3) to focus the resources and efforts of the public and private sectors on ending and preventing homelessness;

`(4) to provide funds for programs to assist individuals and families in the transition from homelessness, and to prevent homelessness for those vulnerable to homelessness;

`(5) to consolidate the separate homeless assistance programs carried out under title IV (consisting of the supportive housing program and related innovative programs, the safe havens program, the section 8 assistance program for single-room occupancy dwellings, the shelter plus care program, and the rural homeless housing assistance program) into a single program with specific eligible activities;

`(6) to allow flexibility and creativity in re-thinking solutions to homelessness, including alternative housing strategies, outcome-effective service delivery, and the involvement of persons experiencing homelessness in decision making regarding opportunities for their long-term stability, growth, well-being, and optimum self-sufficiency; and

`(7) to ensure that multiple Federal agencies are involved in the provision of housing, health care, human services, employment, and education assistance, as appropriate for the missions of the agencies, to persons experiencing homelessness, through the funding provided for implementation of programs carried out under this Act and other programs targeted for persons experiencing homelessness, and mainstream funding, and to promote coordination among those Federal agencies, including providing funding for a United States Interagency Council on Homelessness to advance such coordination.'.

SEC. 3. UNITED STATES INTERAGENCY COUNCIL ON HOMELESSNESS.

Title II of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11311 et seq.) is amended--

(1) in section 201 (42 U.S.C. 11311), by striking the period at the end and inserting the following: `whose mission shall be to develop and coordinate the implementation of a national strategy to prevent and end homelessness while maximizing the effectiveness of the Federal Government in contributing to an end to homelessness in the United States.';

(2) in section 202 (42 U.S.C. 11312)--

(A) in subsection (a)--

(i) by striking `(16)' and inserting `(19)'; and

(ii) by inserting after paragraph (15) the following:

`(16) The Commissioner of Social Security, or the designee of the Commissioner.

`(17) The Attorney General of the United States, or the designee of the Attorney General.

`(18) The Director of the Office of Management and Budget, or the designee of the Director.';

(B) in subsection (c), by striking `annually' and inserting `2 times each year'; and

(C) by adding at the end the following:

`(e) Administration- The Assistant to the President for Domestic Policy within the Executive Office of the President shall oversee the functioning of the United States Interagency Council on Homelessness to ensure Federal interagency collaboration and program coordination to focus on preventing and ending homelessness, to increase access to mainstream programs (as identified in a report by the Government Accountability Office entitled `Homelessness: Barriers to Using Mainstream Programs', issued July 6, 2000) by persons experiencing homelessness, to eliminate the barriers to participation in those programs, to implement a Federal plan to prevent and end homelessness, and to identify Federal resources that can be expended to prevent and end homelessness.';

(3) in section 203(a) (42 U.S.C. 11313(a))--

(A) by redesignating paragraphs (1), (2), (3), (4), (5), (6), and (7) as paragraphs (2), (3), (4), (5), (8), (9), and (10), respectively;

(B) by inserting before paragraph (2), as redesignated by subparagraph (A), the following:

`(1) not later than 1 year after the date of enactment of the Community Partnership to End Homelessness Act of 2005, develop and submit to the President and to Congress a National Strategic Plan to End Homelessness;';

(C) in paragraph (5), as redesignated by subparagraph (A), by striking `at least 2, but in no case more than 5' and inserting `not less than 5, but in no case more than 10'; and

(D) by inserting after paragraph (5), as redesignated by subparagraph (A), the following:

`(6) encourage the creation of State Interagency Councils on Homelessness and the formulation of multi-year plans to end homelessness at State, city, and county levels;

`(7) develop mechanisms to ensure access by persons experiencing homelessness to all Federal, State, and local programs for which the persons are eligible, and to verify collaboration among entities within a community that receive Federal funding under programs targeted for persons experiencing homelessness, and other programs for which persons experiencing homelessness are eligible, including mainstream programs identified by the Government Accountability Office in the 2 reports described in section 102(a)(5)(B);'; and

(4) by striking section 208 (42 U.S.C. 11318) and inserting the following:

`SEC. 208. AUTHORIZATION OF APPROPRIATIONS.

`Of any amounts made available for any fiscal year to carry out subtitles B and C of title IV, $3,000,000 shall be allocated to the Assistant to the President for Domestic Policy within the Executive Office of the President to carry out this title.'.

SEC. 4. HOUSING ASSISTANCE GENERAL PROVISIONS.

Subtitle A of title IV of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11361 et seq.) is amended--

(1) by striking the subtitle heading and inserting the following:

`Subtitle A--General Provisions';

(2)(A) by redesignating section 401 (42 U.S.C. 11361) as section 403; and

(B) by redesignating section 402 (42 U.S.C. 11362) as section 406;

(3) by inserting before section 403 (as redesignated in paragraph (2)) the following:

`SEC. 401. DEFINITIONS.

`In this title:

`(1) CHRONICALLY HOMELESS-

`(A) IN GENERAL- The term `chronically homeless', used with respect to an individual or family, means an individual or family who--

`(i) is homeless;

`(ii) has been homeless continuously for at least 1 year or has been homeless on at least 4 separate occasions in the last 3 years; and

`(iii) in the case of a family, has an adult head of household with a disabling condition.

`(B) DISABLING CONDITION- As used in this paragraph, the term `disabling condition' means a condition that is a diagnosable substance use disorder, serious mental illness, developmental disability (as defined in section 102 of the Developmental Disabilities Assistance and Bill of Rights Act of 2000 (42 U.S.C. 15002)), or chronic physical illness or disability, including the co-occurrence of 2 or more of those conditions.

`(2) COLLABORATIVE APPLICANT-

`(A) IN GENERAL- The term `collaborative applicant' means an entity that--

`(i) is a representative community homeless assistance planning body established or designed in accordance with section 402;

`(ii) serves as the applicant for project sponsors who jointly submit a single application for a grant under subtitle C in accordance with a collaborative process; and

`(iii) if the entity is a legal entity and is awarded such grant, receives such grant directly from the Secretary.

`(B) STATE AND LOCAL GOVERNMENTS- Notwithstanding the requirements of subparagraph (A), the term `collaborative applicant' includes a State or local government, or a consortium of State or local governments, engaged in activities to end homelessness.

`(3) COLLABORATIVE APPLICATION- The term `collaborative application' means an application for a grant under subtitle C that--

`(A) satisfies section 422 (including containing the information described in subsections (a) and (c) of section 426); and

`(B) is submitted to the Secretary by a collaborative applicant.

`(4) CONSOLIDATED PLAN- The term `Consolidated Plan' means a comprehensive housing affordability strategy and community development plan required in part 91 of title 24, Code of Federal Regulations.

`(5) ELIGIBLE ENTITY- The term `eligible entity' means, with respect to a subtitle, a public entity, a private entity, or an entity that is a combination of public and private entities, that is eligible to receive directly grant amounts under that subtitle.

`(6) GEOGRAPHIC AREA- The term `geographic area' means a State, metropolitan city, urban county, town, village, or other nonentitlement area, or a combination or consortia of such, in the United States, as described in section 106 of the Housing and Community Development Act of 1974 (42 U.S.C. 5306).

`(7) HOMELESS INDIVIDUAL WITH A DISABILITY-

`(A) IN GENERAL- The term `homeless individual with a disability' means an individual who is homeless, as defined in section 103, and has a disability that--

`(i)(I) is expected to be long-continuing or of indefinite duration;

`(II) substantially impedes the individual's ability to live independently;

`(III) could be improved by the provision of more suitable housing conditions; and

`(IV) is a physical, mental, or emotional impairment, including an impairment caused by alcohol or drug abuse;

`(ii) is a developmental disability, as defined in section 102 of the Developmental Disabilities Assistance and Bill of Rights Act of 2000 (42 U.S.C. 15002); or

`(iii) is the disease of acquired immunodeficiency syndrome or any condition arising from the etiologic agency for acquired immunodeficiency syndrome.

`(B) RULE- Nothing in clause (iii) of subparagraph (A) shall be construed to limit eligibility under clause (i) or (ii) of subparagraph (A).

`(8) LEGAL ENTITY- The term `legal entity' means--

`(A) an entity described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from tax under section 501(a) of that Code;

`(B) an instrumentality of State or local government; or

`(C) a consortium of instrumentalities of State or local governments that has constituted itself as an entity.

`(9) METROPOLITAN CITY; URBAN COUNTY; NONENTITLEMENT AREA- The terms `metropolitan city', `urban county', and `nonentitlement area' have the meanings given such terms in section 102(a) of the Housing and Community Development Act of 1974 (42 U.S.C. 5302(a)).

`(10) NEW- The term `new', used with respect to housing, means housing for which no assistance has been provided under this title.

`(11) OPERATING COSTS- The term `operating costs' means expenses incurred by a project sponsor operating--

`(A) transitional housing or permanent housing under this title with respect to--

`(i) the administration, maintenance, repair, and security of such housing;

`(ii) utilities, fuel, furnishings, and equipment for such housing; or

`(iii) conducting an assessment under section 426(c)(2); and

`(B) supportive housing, for homeless individuals with disabilities or homeless families that include such an individual, under this title with respect to--

`(i) the matters described in clauses (i), (ii), and (iii) of subparagraph (A); and

`(ii) coordination of services as needed to ensure long-term housing stability.

`(12) OUTPATIENT HEALTH SERVICES- The term `outpatient health services' means outpatient health care services, mental health services, and outpatient substance abuse treatment services.

`(13) PERMANENT HOUSING- The term `permanent housing' means community-based housing without a designated length of stay, and includes permanent supportive housing for homeless individuals with disabilities and homeless families that include such an individual who is an adult.

`(14) PERMANENT HOUSING DEVELOPMENT ACTIVITIES- The term `permanent housing development activities' means activities--

`(A) to construct, lease, rehabilitate, or acquire structures to provide permanent housing;

`(B) involving tenant-based and project-based flexible rental assistance for permanent housing;

`(C) described in paragraphs (1) through (4) of section 423(a) as they relate to permanent housing; or

`(D) involving the capitalization of a dedicated project account from which payments are allocated for rental assistance and operating costs of permanent housing.

`(15) PRIVATE NONPROFIT ORGANIZATION- 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.

`(16) PROJECT- The term `project', used with respect to activities carried out under subtitle C, means eligible activities described in section 423(a), undertaken pursuant to a specific endeavor, such as serving a particular population or providing a particular resource.

`(17) PROJECT-BASED- The term `project-based', used with respect to rental assistance, means assistance provided pursuant to a contract that--

`(A) is between--

`(i) a project sponsor; and

`(ii) an owner of a structure that exists as of the date the contract is entered into; and

`(B) provides that rental assistance payments shall be made to the owner and that the units in the structure shall be occupied by eligible persons for not less than the term of the contract.

`(18) PROJECT SPONSOR- The term `project sponsor', used with respect to proposed eligible activities, means the organization directly responsible for the proposed eligible activities.

`(19) RECIPIENT- Except as used in subtitle B, the term `recipient' means an eligible entity who--

`(A) submits an application for a grant under section 422 that is approved by the Secretary;

`(B) receives the grant directly from the Secretary to support approved projects described in the application; and

`(C)(i) serves as a project sponsor for the projects; or

`(ii) awards the funds to project sponsors to carry out the projects.

`(20) SECRETARY- The term `Secretary' means the Secretary of Housing and Urban Development.

`(21) SERIOUSLY MENTALLY ILL- The term `seriously mentally ill' means having a severe and persistent mental illness or emotional impairment that seriously limits a person's ability to live independently.

`(22) STATE- Except as used in subtitle B, the term `State' means each of the several States, the District of Columbia, the Commonwealth of Puerto Rico, the United States Virgin Islands, Guam, American Samoa, and the Commonwealth of the Northern Mariana Islands.

`(23) SUPPORTIVE HOUSING- The term `supportive housing' means housing that--

`(A) helps individuals experiencing homelessness and families experiencing homelessness to transition from homelessness to living in safe, decent, and affordable housing as independently as possible; and

`(B) provides supportive services and housing assistance on either a temporary or permanent basis, as determined by the identified abilities and needs of the program participants.

`(24) SUPPORTIVE SERVICES- The term `supportive services'--

`(A) through the end of the final determination year (as described in section 423(a)(6)(C)(iii)), means the services described in section 423(a)(6)(A), for both new projects and projects receiving renewal funding; and

`(B) after that final determination year, means the services described in section 423(a)(6)(B), as permitted under section 423(a)(6)(C), for both new projects and projects receiving renewal funding.

`(25) TENANT-BASED- The term `tenant-based', used with respect to rental assistance, means assistance that allows an eligible person to select a housing unit in which such person will live using rental assistance provided under subtitle C, except that if necessary to assure that the provision of supportive services to a person participating in a program is feasible, a recipient or project sponsor may require that the person live--

`(A) in a particular structure or unit for not more than the first year of the participation; and

`(B) within a particular geographic area for the full period of the participation, or the period remaining after the period referred to in subparagraph (A).

`(26) TRANSITIONAL HOUSING- The term `transitional housing' means housing, the purpose of which is to facilitate the movement of individuals and families experiencing homelessness to permanent housing within 24 months or such longer period as the Secretary determines necessary.

`SEC. 402. COLLABORATIVE APPLICANTS.

`(a) Establishment and Designation- A collaborative applicant shall be established for a geographic area by the relevant parties in that geographic area, or designated for a geographic area by the Secretary in accordance with subsection (d), to lead a collaborative planning process to design and evaluate programs, policies, and practices to prevent and end homelessness.

`(b) Membership of Established Collaborative Applicant- A collaborative applicant established under subsection (a) shall be composed of persons from a particular geographic area who are--

`(1) persons who are experiencing or have experienced homelessness (with not fewer than 2 persons being individuals who are experiencing or have experienced homelessness);

`(2) persons who act as advocates for the diverse subpopulations of persons experiencing homelessness;

`(3) persons or representatives of organizations who provide assistance to the variety of individuals and families experiencing homelessness; and

`(4) relatives of individuals experiencing homelessness;

`(5) government agency officials, particularly those officials responsible for administering funding under programs targeted for persons experiencing homelessness, and other programs for which persons experiencing homelessness are eligible, including mainstream programs identified by the Government Accountability Office in the 2 reports described in section 102(a)(5)(B);

`(6) 1 or more local educational agency liaisons designated under section 722(g)(1)(J)(ii), or their designees;

`(7) members of the business community;

`(8) members of neighborhood advocacy organizations; and

`(9) members of philanthropic organizations that contribute to preventing and ending homelessness in the geographic area of the collaborative applicant.

`(c) Rotation of Membership of Established or Designated Collaborative Applicant- The parties establishing or designating a collaborative applicant under subsection (a) shall ensure, to the extent practicable, that the collaborative applicant rotates its membership to ensure that representatives of all agencies, businesses, and organizations who are described in paragraphs (1) through (9) of subsection (b) and invested in developing and implementing strategies to prevent and end homelessness are able to participate as decisionmaking members of the collaborative applicant.

`(d) Existing Planning Bodies- The Secretary may designate an entity to be a collaborative applicant if such entity--

`(1) prior to the date of enactment of the Community Partnership to End Homelessness Act of 2005, engaged in coordinated, comprehensive local homeless housing and services planning and applied for Federal funding to provide homeless assistance; and

`(2) ensures that its membership includes persons described in paragraphs (1) through (9) of subsection (b).

`(e) Tax Exempt Organizations- An entity may be established or designated to serve as a collaborative applicant under this section without being a legal entity. If a collaborative applicant is a legal entity, the collaborative applicant may only receive funds directly from the Secretary under this title, and may only apply for funds to conduct the activities described in section 423(a)(7).

`(f) Remedial Action- If the Secretary finds that a collaborative applicant for a geographic area does not meet the requirements of this section, the Secretary may take remedial action to ensure fair distribution of grant amounts under subtitle C to eligible entities within that area. Such measures may include designating another body as a collaborative applicant, or permitting other eligible entities to apply directly for grants.

`(g) Construction- Nothing in this section shall be construed to displace conflict of interest or government fair practices laws, or their equivalent, that govern applicants for grant amounts under subtitles B and C.

`(h) Duties- A collaborative applicant shall--

`(1)(A) design a collaborative process, established jointly and complied with by its members, for evaluating, reviewing, prioritizing, awarding, and monitoring projects and applications submitted by project sponsors under subtitle C, and for evaluating the outcomes of projects for which funds are awarded under subtitle B, in such a manner as to ensure that the entities involved further the goal of preventing and ending homelessness, and optimizing self-sufficiency among individuals and families experiencing homelessness, in the geographic area involved;

`(B)(i)(I) review relevant policies and practices (in place and planned) of public and private entities in the geographic area served by the collaborative applicant to determine if the policies and practices further or impede the goal described in subparagraph (A);

`(II) in conducting the review, give priority to the review of--

`(aa) the discharge planning and service termination policies and practices of publicly funded facilities or institutions (such as health care or treatment facilities or institutions, foster care or youth facilities, or juvenile or adult correctional institutions), and entities carrying out publicly funded programs and systems of care (such as health care or treatment programs, the programs of block grants to States for temporary assistance for needy families established under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.), child welfare or youth programs, or juvenile or adult correctional programs), to ensure that such a discharge or termination does not result in immediate homelessness for the persons involved;

`(bb) the access and utilization policies and practices of the entities carrying out mainstream programs identified by the Government Accountability Office in the 2 reports described in section 102(a)(5)(B), to ensure that persons experiencing homelessness are able to access and utilize the programs;

`(cc) local policies and practices relating to zoning and enforcement of local statutes, to ensure that the policies and practices allow reasonable inclusion and distribution in the geographic area of special needs populations and families with children and the facilities that serve the populations and families;

`(dd) policies and practices relating to the school selection and enrollment of homeless children and youths (as defined in section 725) to ensure that the homeless children and youths, and their parents, are able to exercise their educational rights under subtitle B of title VII; and

`(ee) local policies and practices relating to the placement of families with homeless children and youths (as so defined) in emergency or transitional shelters, to ensure that the children and youths are placed as close as possible to their school of origin in order to facilitate continuity of, and prevent disruption of, educational services; and

`(III) in conducting the review, determine the modifications and corrective actions that need to be taken, and by whom, to ensure that the relevant policies and practices do not stimulate, or prolong, homelessness in the geographic area;

`(ii) inform the appropriate entities of the determinations described in clause (i); and

`(iii) at least once every 3 years, prepare for inclusion in any application reviewed by the collaborative applicant, and submitted to the Secretary under section 422, the determinations described in clause (i), in the form of an exhibit entitled `Assessment of Relevant Policies and Practices, and Needed Corrective Actions to End and Prevent Homelessness'; and

`(C) if the collaborative applicant designs and carries out the projects, design and carry out the projects in such a manner as to further the goal described in subparagraph (A);

`(2)(A) require, consistent with the Government Performance and Results Act of 1993 and amendments made by that Act, that recipients and project sponsors who are funded by grants received under subtitle C implement and maintain an outcome-based evaluation of their projects that measures effective and timely delivery of housing or services and whether provision of such housing or services results in preventing or ending homelessness for the persons that such recipients and project sponsors serve; and

`(B) request that States and local governments who distribute funds under subtitle B submit information and comments on the administration of activities under subtitle B, to enable the collaborative applicant to plan and design a full continuum of care for persons experiencing homelessness;

`(3) require, consistent with the Government Performance and Results Act of 1993 and amendments made by that Act, outcome-based evaluation of the homeless assistance planning process of the collaborative applicant to measure the performance of the collaborative applicant in preventing or ending the homelessness of persons in the geographic area of the collaborative applicant;

`(4) participate in the Consolidated Plan for the geographic area served by the collaborative applicant; and

`(5)(A) require each project sponsor who is funded by a grant received under subtitle C to establish such fiscal control and fund accounting procedures as may be necessary to assure the proper disbursal of, and accounting for, Federal funds awarded to the project sponsor under subtitle C in order to ensure that all financial transactions carried out under subtitle C are conducted, and records maintained, in accordance with generally accepted accounting principles; and

`(B) arrange for an annual survey, audit, or evaluation of the financial records of each project carried out by a project sponsor funded by a grant received under subtitle C.

`(i) Conflict of Interest- No member of a collaborative applicant may participate in decisions of the collaborative applicant concerning the award of a grant, or provision of other financial benefits, to such member or the organization that such member represents.

`(j) Homeless Management Information System-

`(1) IN GENERAL- In accordance with standards established by the Secretary, each collaborative applicant shall ensure consistent participation by project sponsors in a community-wide homeless management information system. The collaborative applicant shall ensure the participation for purposes of collecting unduplicated counts of individuals and families experiencing homelessness, analyzing patterns of use of assistance provided under subtitles B and C for the geographic area involved, implementing an effective information and referral system, and providing information for the needs analyses and funding priorities of collaborative applicants.

`(2) FUNDS- A collaborative applicant may apply for funds under this title to establish, continue, carry out, or ensure consistent participation by project sponsors in a homeless management information system, if the applicant is a legal entity.';

(4) by inserting after section 403 (as redesignated in paragraph (2)) the following:

`SEC. 404. TECHNICAL ASSISTANCE.

`(a) Technical Assistance for Project Sponsors- The Secretary shall make effective technical assistance available to private nonprofit organizations and other nongovernmental entities, States, metropolitan cities, urban counties, and counties that are not urban counties that are potential project sponsors, in order to implement effective planning processes for preventing and ending homelessness, to optimize self-sufficiency among individuals experiencing homelessness and to improve their capacity to become project sponsors.

`(b) Technical Assistance for Collaborative Applicants- The Secretary shall make effective technical assistance available to collaborative applicants to improve their ability to carry out the provisions of this title, and to design and execute outcome-effective strategies for preventing and ending homelessness in their geographic areas consistent with the provisions of this title.

`(c) Reservation- The Secretary may reserve not more than 1 percent of the funds made available for any fiscal year for carrying out subtitles B and C, to make available technical assistance under subsections (a) and (b).

`SEC. 405. PERFORMANCE REPORTS AND MONITORING.

`(a) In General- A collaborative applicant shall submit to the Secretary an annual performance report regarding the activities carried out with grant amounts received under subtitles B and C in the geographic area served by the collaborative applicant, at such time and in such manner as the Secretary determines to be reasonable.

`(b) Content- The performance report described in subsection (a) shall--

`(1) describe the number of persons provided homelessness prevention assistance (including the number of such persons who were discharged or whose services were terminated as described in section 422(c)(1)(B)(ii)(I)(bb)), and the number of individuals and families experiencing homelessness who were provided shelter, housing, or supportive services, with the grant amounts awarded in the fiscal year prior to the fiscal year in which the report was submitted, including measurements of the number of persons experiencing homelessness who--

`(A) entered permanent housing, and the length of time such persons resided in that housing, if known;

`(B) entered transitional housing, and the length of time such persons resided in that housing, if known;

`(C) obtained or retained jobs;

`(D) increased their income, including increasing income through the receipt of government benefits;

`(E) received mental health or substance abuse treatment in an institutional setting and now receive that assistance in a less restrictive, community-based setting;

`(F) received additional education, vocational or job training, or employment assistance services;

`(G) received additional physical, mental, or emotional health care;

`(H) were children under the age of 18 during the year at issue, including the number of--

`(i) children who were not younger than 2 and not older than 4, or were infants or toddlers with disabilities (as defined in section 632 of the Individuals with Disabilities Education Act (20 U.S.C. 1432));

`(ii) children described in clause (i) who were enrolled in preschool or were receiving services under part C of such Act (20 U.S.C. 1431 et seq.);

`(iii) children who were not younger than 5 and not older than 17;

`(iv) children described in clause (iii) who are enrolled in elementary school or secondary school (as such terms are defined in section 9101 of the Elementary and Secondary Education Act of 1965 (20 U.S.C. 7801)); and

`(v) children under the age of 18 who received child care, health care, mental health care, or supplemental educational services; and

`(I) were reunited with their families;

`(2) estimate the number of persons experiencing homelessness, including children under the age of 18, in the geographic area served by the collaborative applicant who are eligible for, but did not receive, services, housing, or other assistance through the programs funded under subtitles B and C in the prior fiscal year;

`(3) indicate the accomplishments achieved within the geographic area that involved the use of the grant amounts awarded in the prior fiscal year, regarding efforts to coordinate services and programs within the geographic area;

`(4) indicate the accomplishments achieved within the geographic area to--

`(A) increase access by persons experiencing homelessness to programs that are not targeted for persons experiencing homelessness (but for which persons experiencing homelessness are eligible), including mainstream programs identified by the Government Accountability Office in the 2 reports described in section 102(a)(5)(B); and

`(B) prevent the homelessness of persons discharged from publicly funded institutions or systems of care (such as health care facilities, child welfare or other youth facilities or systems of care, institutions or systems of care relating to the program of block grants to States for temporary assistance for needy families established under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.), and juvenile or adult correctional programs and institutions);

`(5) describe how the collaborative applicant and other involved public and private entities within the geographic area will incorporate their experiences in the prior fiscal year into the programs and process that the collaborative applicant and entities will implement during the next fiscal year, including describing specific strategies to improve their performance outcomes;

`(6) assess the consistency and coordination between the programs funded under subtitles B and C in the prior fiscal year and the Consolidated Plan;

`(7) include updates to the exhibits described in section 402(h)(1)(B)(iii) that were included in applications--

`(A) submitted under section 422 by collaborative applicants; and

`(B) approved by the Secretary;

`(8) for each project sponsor funded by the collaborative applicant through a grant under subtitle C--

`(A) include a performance evaluation (which may include information from the reports described in subsection (a) and section 422(c)(1)(B)(vii)) of each project carried out by the project sponsor, based on the outcome-based evaluation measures described in section 402(h)(2)(A), the measurements described in section 423(a)(7), and the evaluation plan for the project described in section 426(b)(8) and resulting from the monitoring described in sections 402(h)(1)(A) and 426(c)(3); and

`(B) include a report, resulting from a survey, audit or evaluation conducted under section 402(h)(5)(B), detailing whether the project sponsor has carried out the recordkeeping and reporting requirements of section 402(h)(5); and

`(9) provide such other information as the Secretary finds relevant to assessing performance, including performance on success measures that are risk-adjusted to factors related to the circumstances of the population served.

`(c) Waiver- The Secretary may grant a waiver to any collaborative applicant that is unable to provide information required by subsection (b). Such collaborative applicant shall submit a plan to provide such information within a reasonable period of time.

`(d) Monitoring by the Secretary-

`(1) COLLABORATIVE APPLICANTS- Each year, the Secretary shall--

`(A) ensure that each collaborative applicant has complied with the requirements of subsection (b)(8) and section 402(h)(5);

`(B) require each collaborative applicant receiving funds under subtitle C to establish such fiscal control and fund accounting procedures as may be necessary to assure the proper disbursal of, and accounting for, Federal funds awarded to the collaborative applicant under subtitle C in order to ensure that all financial transactions carried out under subtitle C are conducted, and records maintained, in accordance with generally accepted accounting principles; and

`(C) for a selected sample of collaborative applicants receiving funds under subtitle C--

`(i) ensure that each selected collaborative applicant has satisfactorily carried out the recordkeeping and reporting requirements of subsections (a) and (b), section 426(c)(3), and, if applicable, section 426(c)(6); and

`(ii) survey, audit, or evaluate the financial records of each selected collaborative applicant receiving funds under subtitle C to carry out section 423(a)(7)(A), using Federal auditors.

`(2) PROJECT SPONSORS- Each year, the Secretary shall select a sample of project sponsors and shall conduct a performance evaluation of each project of each selected project sponsor funded under subtitle C, using the outcome-based evaluation measures developed by the appropriate collaborative applicant in accordance with section 402(h)(2)(A) and including the measurements described in section 423(a)(7).

`(e) Action by Secretary- Based on the information available to the Secretary, including information obtained pursuant to subsections (b) and (d), the Secretary may adjust, reduce, or withdraw amounts made available (or that would otherwise be made available) to collaborative applicants, or take other action as appropriate (including designating another body as a collaborative applicant, or permitting other collaborative entities to apply directly for grants under subtitle C), except that amounts already properly expended on eligible activities under this title may not be recaptured by the Secretary.'; and

(5) by inserting after section 406 (as redesignated in paragraph (2)) the following:

`SEC. 407. AUTHORIZATION OF APPROPRIATIONS.

`There are authorized to be appropriated to carry out title II and this title $1,600,000,000 for fiscal year 2006 and such sums as may be necessary for fiscal years 2007, 2008, 2009, and 2010.'.

SEC. 5. EMERGENCY SHELTER GRANTS PROGRAM.

Subtitle B of title IV of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11371 et seq.) is amended--

(1) by striking section 412 (42 U.S.C. 11372) and inserting the following:

`SEC. 412. GRANT ASSISTANCE.

`The Secretary shall make grants to States and local governments (and to private nonprofit organizations providing assistance to persons experiencing homelessness, in the case of grants made with reallocated amounts) for the purpose of carrying out activities described in section 414.

`SEC. 412A. AMOUNT AND ALLOCATION OF ASSISTANCE.

`(a) In General- Of the amount made available to carry out this subtitle and subtitle C for a fiscal year, the Secretary shall allocate nationally not more than 15 percent of such amount for activities described in section 414.

`(b) Allocation- An entity that receives a grant under section 412, and serves an area that includes 1 or more geographic areas (or portions of such areas) served by collaborative applicants that submit applications under subtitle C, shall allocate the funds made available through the grant to carry out activities described in section 414, in consultation with the collaborative applicants.';

(2) in section 413(b) (42 U.S.C. 11373(b)), by striking `amounts appropriated' and all that follows through `for any' and inserting `amounts appropriated under section 407 and made available to carry out this subtitle for any';

(3) by striking section 414 (42 U.S.C. 11374) and inserting the following:

`SEC. 414. ELIGIBLE ACTIVITIES.

`(a) In General- Assistance provided under section 412 may be used for the following activities:

`(1) The renovation, major rehabilitation, or conversion of buildings to be used as emergency shelters.

`(2) The provision of essential services, including services concerned with employment, health, or education, family support services for homeless youth, alcohol or drug abuse prevention or treatment, or mental health treatment, if such essential services have not been provided by the local government during any part of the immediately preceding 12-month period, or the use of assistance under this subtitle would complement the provision of those essential services.

`(3) Maintenance, operation insurance, provision of utilities, and provision of furnishings.

`(4) Efforts to prevent homelessness, such as the provision of financial assistance to families who have received eviction notices or notices of termination of utility services, if--

`(A) the inability of such a family to make the required payments is due to a sudden reduction in income;

`(B) the assistance is necessary to avoid the eviction or termination of services;

`(C) there is a reasonable prospect that the family will be able to resume the payments within a reasonable period of time; and

`(D) funds appropriated for the assistance will not supplant funding for homelessness prevention activities from other sources (other funds made available under this Act).

`(b) Limitation- Not more than 30 percent of the aggregate amount of all assistance to a State or local government under this subtitle may be used for activities under subsection (a)(4).'; and

(4) by repealing sections 417 and 418 (42 U.S.C. 11377, 11378).

SEC. 6. HOMELESS ASSISTANCE PROGRAM.

Subtitle C of title IV of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11381 et seq.) is amended--

(1) by striking the subtitle heading and inserting the following:

`Subtitle C--Homeless Assistance Program';

(2) by striking sections 421 through 423 (42 U.S.C. 11381 et seq.) and inserting the following:

`SEC. 421. PURPOSES.

`The purposes of this subtitle are--

`(1) to promote the implementation of activities that can prevent vulnerable individuals and families from becoming homeless;

`(2) to promote the development of transitional and permanent housing, including low-demand housing;

`(3) to promote access to and effective utilization of mainstream programs identified by the Government Accountability Office in the 2 reports described in section 102(a)(5)(B) and programs funded with State or local resources; and

`(4) to optimize self-sufficiency among individuals experiencing homelessness.

`SEC. 422. COMMUNITY HOMELESS ASSISTANCE PROGRAM.

`(a) Projects- The Secretary shall award grants to collaborative applicants to carry out homeless assistance and prevention projects, either directly or by awarding funds to project sponsors to carry out the projects.

`(b) Notification of Funding Availability- The Secretary shall release a Notification of Funding Availability for grants awarded under this subtitle for a fiscal year not later than 3 months after the date of enactment of the appropriate Act making appropriations for the Department of Housing and Urban Development for the fiscal year.

`(c) Applications-

`(1) SUBMISSION TO THE SECRETARY- To receive a grant under subsection (a), a collaborative applicant shall submit an application to the Secretary at such time and in such manner as the Secretary may require, and containing--

`(A) the information described in subsections (a) and (c) of section 426; and

`(B) other information that shall--

`(i) describe the establishment (or designation) and function of the collaborative applicant, including--

`(I) the nomination and selection process, including the names and affiliations of all members of the collaborative applicant; or

`(II) all meetings held by the collaborative applicant in preparing the application, including identification of those meetings that were public; and

`(III) all meetings between representatives of the collaborative applicant, and persons responsible for administering the Consolidated Plan;

`(ii) outline the range of housing and service programs available to persons experiencing homelessness or imminently at risk of experiencing homelessness and describe the unmet needs that remain in the geographic area for which the collaborative applicant seeks funding regarding--

`(I) prevention activities, including providing assistance in--

`(aa) making mortgage, rent, or utility payments; or

`(bb) accessing permanent housing and transitional housing for individuals (and families that include the individuals) who are being discharged from a publicly funded facility, program, or system of care, or whose services (from such a facility, program, or system of care) are being terminated;

`(II) outreach activities to assess the needs and conditions of persons experiencing homelessness, including significant subpopulations of such persons, including individuals with disabilities, veterans, victims of domestic violence, homeless children and youths (as defined in section 725), and chronically homeless individuals and families;

`(III) emergency shelters, including the supportive and referral services the shelters provide;

`(IV) transitional housing with appropriate supportive services to help persons experiencing homelessness who are not yet able or prepared to make the transition to permanent housing and independent living;

`(V) permanent housing to help meet the long-term needs of individuals and families experiencing homelessness; and

`(VI) needed supportive services, including services for children;

`(iii) prioritize the projects for which the collaborative applicant seeks funding according to the unmet needs in the fiscal year for which the applicant submits the application as described in clause (ii);

`(iv) identify funds from private and public sources, other than funds received under subtitles B and C, that the State, units of general local government, recipients, project sponsors, and others will use for homelessness prevention, outreach, emergency shelter, supportive services, transitional housing, and permanent housing, that will be integrated with the assistance provided under subtitles B and C;

`(v) identify funds provided by the State and units of general local government under programs targeted for persons experiencing homelessness, and other programs for which persons experiencing homelessness are eligible, including mainstream programs identified by the Government Accountability Office in the 2 reports described in section 102(a)(5)(B);

`(vi) explain--

`(I) how the collaborative applicant will meet the housing and service needs of individuals and families experiencing homelessness in the applicant's community; and

`(II) how the collaborative applicant will integrate the activities described in the application with the strategy of the State, units of general local government, and private entities in the geographic area over the next 5 years to prevent and end homelessness, including, as part of that strategy, a work plan for the applicable fiscal years;

`(vii) report on the outcome-based performance of the homeless programs within the geographic area served by the collaborative applicant that were funded under this title in the fiscal year prior to the fiscal year in which the application is submitted;

`(viii) include any relevant required agreements under subtitle C;

`(ix) contain a certification of consistency with the Consolidated Plan pursuant to section 403;

`(x) include an exhibit described in section 402(h)(1)(B)(iii) and prepared by the collaborative applicant in accordance with that section; and

`(xi) contain a certification that project sponsors for all projects for which the collaborative applicant seeks funding through the grant will establish policies and practices that are consistent with, and do not restrict the exercise of rights provided by, subtitle B of title VII, and other laws relating to the provision of educational and related services to individuals experiencing homelessness.

`(2) CONSIDERATION- In outlining the programs and describing the needs referred to in paragraph (1)(A)(ii), the collaborative applicant shall take into account the findings and recommendations of the most recently completed annual assessments, conducted pursuant to section 2034 of title 38, United States Code, of the Department of Veterans Affairs medical centers or regional benefits offices whose service areas include the geographic area described in paragraph (1)(A)(ii).

`(3) ANNOUNCEMENT OF AWARDS- The Secretary shall announce, within 4 months after the last date for the submission of applications described in this subsection for a fiscal year, the grants conditionally awarded under subsection (a) for that fiscal year.

`(4) OBLIGATION, DISTRIBUTION, AND UTILIZATION OF FUNDS-

`(A) REQUIREMENTS FOR OBLIGATION-

`(i) IN GENERAL- Not later than 9 months after the announcement referred to in paragraph (3), each recipient of a grant announced under paragraph (3) shall, with respect to a project to be funded through such grant, meet, or cause the project sponsor to meet, all requirements for the obligation of funds for such project, including site control, matching funds, and environmental review requirements, except as provided in clause (ii).

`(ii) ACQUISITION, REHABILITATION, OR CONSTRUCTION- Not later than 15 months after the announcement referred to in paragraph (3), each recipient or project sponsor seeking the obligation of funds for acquisition of housing, rehabilitation of housing, or construction of new housing for a grant announced under paragraph (3) shall meet all requirements for the obligation of those funds, including site control, matching funds, and environmental review requirements.

`(iii) EXTENSIONS- At the discretion of the Secretary, and in compelling circumstances, the Secretary may extend the date by which a recipient shall meet or cause a project sponsor to meet the requirements described in clause (i) if the Secretary determines that compliance with the requirements was delayed due to factors beyond the reasonable control of the recipient or project sponsor. Such factors may include difficulties in obtaining site control for a proposed project, completing the process of obtaining secure financing for the project, or completing the technical submission requirements for the project.

`(B) OBLIGATION- Not later than 45 days after a recipient meets or causes a project sponsor to meet the requirements described in subparagraph (A), the Secretary shall obligate the funds for the grant involved.

`(C) DISTRIBUTION- A recipient that receives funds through such a grant--

`(i) shall distribute the funds to project sponsors (in advance of expenditures by the project sponsors); and

`(ii) shall distribute the appropriate portion of the funds to a project sponsor not later than 45 days after receiving a request for such distribution from the project sponsor.

`(D) EXPENDITURE OF FUNDS- The Secretary may establish a date by which funds made available through a grant announced under paragraph (3) for a homeless assistance and prevention project shall be entirely expended by the recipient or project sponsors involved. The Secretary shall recapture the funds not expended by such date. The Secretary shall reallocate the funds for another homeless assistance and prevention project that meets the requirements of this subtitle to be carried out, if possible and appropriate, in the same geographic area as the area served through the original grant.

`(d) Notification of Pro Rata Estimated Need Amounts-

`(1) NOTICE- The Secretary shall inform each collaborative applicant, at a time concurrent with the release of the Notice of Funding Availability for the grants, of the pro rata estimated need amount under this subtitle for the geographic area represented by the collaborative applicant.

`(2) AMOUNT-

`(A) BASIS- Such estimated need amount shall be based on a percentage of the total funds available, or estimated to be available, to carry out this subtitle for any fiscal year that is equal to the percentage of the total amount available for section 106 of the Housing and Community Development Act of 1974 (42 U.S.C. 5306) for the prior fiscal year that--

`(i) was allocated to all metropolitan cities and urban counties within the geographic area represented by the collaborative applicant; or

`(ii) would have been distributed to all counties within such geographic area that are not urban counties, if the 30 percent portion of the allocation to the State involved (as described in subsection (d)(1) of that section 106) for that year had been distributed among the counties that are not urban counties in the State in accordance with the formula specified in that subsection (with references in that subsection to nonentitlement areas considered to be references to those counties).

`(B) RULE- In computing the estimated need amount, the Secretary shall adjust the estimated need amount determined pursuant to subparagraph (A) to ensure that--

`(i) 75 percent of the total funds available, or estimated to be available, to carry out this subtitle for any fiscal year are allocated to the metropolitan cities and urban counties that received a direct allocation of funds under section 413 for the prior fiscal year; and

`(ii) 25 percent of the total funds available, or estimated to be available, to carry out this subtitle for any fiscal year are allocated--

`(I) to the metropolitan cities and urban counties that did not receive a direct allocation of funds under section 413 for the prior fiscal year; and

`(II) to counties that are not urban counties.

`(C) COMBINATIONS OR CONSORTIA- For a collaborative applicant that represents a combination or consortium of cities or counties, the estimated need amount shall be the sum of the estimated need amounts for the cities or counties represented by the collaborative applicant.

`(D) AUTHORITY OF SECRETARY- The Secretary may increase the estimated need amount for a geographic area if necessary to provide 1 year of renewal funding for all expiring contracts entered into under this subtitle for the geographic area.

`(e) Appeals-

`(1) IN GENERAL- Not later than 3 months after the date of enactment of the Community Partnership to End Homelessness Act of 2005, the Secretary shall establish a timely appeal procedure for grant amounts awarded or denied under this subtitle pursuant to an application for funding.

`(2) PROCESS- The Secretary shall ensure that the procedure permits appeals submitted by collaborative applicants, entities carrying out homeless housing and services projects (including emergency shelters and homelessness prevention programs), homeless planning bodies not designated by the Secretary as collaborative applicants.

`(f) Renewal Funding for Unsuccessful Applicants- The Secretary may renew funding for a specific project previously funded under this subtitle that the Secretary determines is worthy, and was included as part of a total application that met the criteria of subsection (c), even if the application was not selected to receive grant assistance. The Secretary may renew the funding for a period of not more than 1 year, and under such conditions as the Secretary determines to be appropriate.

`SEC. 423. ELIGIBLE ACTIVITIES.

`(a) In General- The Secretary may award grants to qualified collaborative applicants under section 422 to carry out homeless assistance and prevention projects that consist of 1 or more of the following eligible activities:

`(1) Construction of new housing units to provide transitional or permanent housing.

`(2) Acquisition or rehabilitation of a structure to provide supportive services or to provide transitional or permanent housing, other than emergency shelter.

`(3) Leasing of property, or portions of property, not owned by the recipient or project sponsor involved, for use in providing transitional or permanent housing, or providing supportive services.

`(4) Provision of rental assistance to provide transitional or permanent housing to eligible persons. The rental assistance may include tenant-based or project-based rental assistance.

`(5) Payment of operating costs for housing units assisted under this subtitle.

`(6)(A) Through the end of the final determination year (as described in subparagraph (C)(iii)), the supportive services described in section 425(c), for both new projects and projects receiving renewal funding.

`(B) After that final determination year, for both new projects and projects receiving renewal funding, services providing job training, case management, outreach services, life skills training, housing counseling services, and other services determined by the Secretary (either at the Secretary's initiative or on the basis of adequate justification by an applicant) to be directly relevant to allowing persons experiencing homelessness to access and retain housing.

`(C)(i) Not later than 30 days after the end of the fiscal year in which the date of enactment of the Community Partnership to End Homelessness Act of 2005 occurs (referred to in this paragraph as the `initial year'), the Government Accountability Office, after consultation with the congressional committees with jurisdiction over the services referred to in this pararaph, shall determine--

`(I) the amount of Federal funds (other than funds made available under this subtitle) that were made available to fund the supportive services described in section 425(c), other than the services described in subparagraph (B) (referred to in this paragraph as the `outside supportive services amount') for that initial year; and

`(II) the amount of Federal funds made available under this subtitle to fund the supportive services described in section 425(c), other than the services described in subparagraph (B) (referred to in this paragraph as the `subtitle B supportive services amount') for that initial year.

`(ii) Not later than 30 days after the end of the third full fiscal year after that date of enactment and of each subsequent fiscal year (referred to in this paragraph as the `determination year') until the final determination year described in clause (iii), the Government Accountability Office, after consultation with the committees described in clause (i), shall--

`(I) determine the outside supportive services amount for that determination year;

`(II) calculate the increase in the outside supportive services amount, by subtracting the outside supportive services amount for the initial year from the outside supportive services amount for that determination year;

`(III) make--

`(aa) a positive determination that the increase is greater than or equal to the subtitle B supportive services amount for the initial year; or

`(bb) a negative determination that that increase is less than that amount; and

`(IV) submit a report regarding that determination year, and containing the positive or negative determination, to the Secretary.

`(iii) On receipt of such a report regarding a determination year that contains a positive determination, the Secretary may publish a notice in the Federal Register, containing a proposed order that subparagraph (B) shall apply for subsequent fiscal years, and seeking public comment for a period of not less than 60 days. At the end of the comment period, the Secretary may issue a final order that subparagraph (B) shall apply for subsequent fiscal years. If the Secretary issues that final order, the determination year shall be considered to be the final determination year for purposes of this subparagraph.

`(iv) If the Secretary does not issue a final order under clause (iii), subparagraph (A) shall apply for the fiscal year following the determination year.

`(7)(A) In the case of a collaborative applicant that is a legal entity, payment of administrative costs related to planning, administering grand awards for, monitoring, and evaluating projects, and ensuring compliance with homeless management information system requirements described in section 402(j)(2), for which the collaborative applicant may use not more than 6 percent of the total funds made available through the grant. A project sponsor receiving funds from the collaborative applicant may use not more than an additional 5 percent of the total funds made available through the grant for such administrative costs.

`(B) For purposes of this paragraph, monitoring and evaluating shall include--

`(i) measuring the outcomes of the homeless assistance planning process of a collaborative applicant for preventing and ending homelessness;

`(ii) the effective and timely implementation of specific projects funded under this subtitle, relative to projected outcomes; and

`(iii) in the case of a housing project funded under this subtitle, compliance with appropriate standards of housing quality and habitability as determined by the Secretary.

`(8) Prevention activities (for which a collaborative applicant may use not more than 5 percent of the funds made available through the grant), including--

`(A) providing financial assistance to individuals or families who have received eviction notices, foreclosure notices, or notices of termination of utility services if, in the case of such an individual or family--

`(i) the inability of the individual or family to make the required payments is due to a sudden reduction in income;

`(ii) the assistance is necessary to avoid the eviction, foreclosure, or termination of services; and

`(iii) there is a reasonable prospect that the individual or family will be able to resume the payments within a reasonable period of time;

`(B) carrying out relocation activities (including providing security or utility deposits, rental assistance for a final month at a location, assistance with moving costs, or rental assistance for not more than 3 months) for moving into transitional or permanent housing, individuals, and families that include such individuals--

`(i) who lack housing;

`(ii) who are being discharged from a publicly funded acute care or long-term care facility, program, or system of care, or whose services (from such a facility, program, or system of care) are being terminated; and

`(iii) who have plans, developed collaboratively by the public entities involved and the individuals and families, for securing or maintaining housing after any funding provided under this subtitle is utilized; and

`(C) providing family support services that promote reunification of--

`(i) youth experiencing homelessness, with their families; and

`(ii) children or youth involved with the child welfare or juvenile justice systems, with their parents or guardians.

`(b) Eligibility for Funds for Prevention Activities- To be eligible to receive grant funds under section 422 to carry out the prevention activities described in subsection (a)(8), an applicant shall submit an application to the Secretary under section 422 that shall include a certification in which--

`(1) the relevant public entities in the geographic area involved certify compliance with subsection (c); and

`(2) the publicly funded institutions, facilities, and systems of care in the geographic area certify that the institutions, facilities, and systems of care will take, and fund directly, all reasonable measures to ensure that the institutions, facilities, and systems of care do not discharge individuals into homelessness.

`(c) Supplement, Not Supplant- Funds appropriated under section 407 and made available for prevention activities described in subsection (a)(8) shall be used to supplement and not supplant other Federal, State, and local public funds used for homelessness prevention.

`(d) Use Restrictions-

`(1) ACQUISITION, REHABILITATION, AND NEW CONSTRUCTION- A project that consists of activities described in paragraph (1) or (2) of subsection (a) shall be operated for the purpose specified in the application submitted for the project under section 422 for not less than 15 years.

`(2) OTHER ACTIVITIES- A project that consists of activities described in any of paragraphs (3) through (8) of subsection (a) shall be operated for the purpose specified in the application submitted for the project under section 422 for the duration of the grant period involved.

`(3) CONVERSION- If the recipient or project sponsor carrying out a project that provides transitional or permanent housing submits a request to the collaborative applicant involved to carry out instead a project for the direct benefit of low-income persons, and the collaborative applicant determines that the initial project is no longer needed to provide transitional or permanent housing, the collaborative applicant may recommend that the Secretary approve the project described in the request and authorize the recipient or project sponsor to carry out that project. If the collaborative applicant is the recipient or project sponsor, it shall submit such a request directly to the Secretary who shall determine if the conversion of the project is appropriate.

`(e) Incentives To Create New Permanent Housing Stock-

`(1) AWARDS-

`(A) IN GENERAL- In making grants to collaborative applicants under section 422, the Secretary shall make awards that provide the incentives described in paragraph (2) to promote the creation of new permanent housing units through the construction, or acquisition and rehabilitation, of permanent housing units, that are owned by a project sponsor or other independent entity who entered into a contract with a recipient or project sponsor, for--

`(i) chronically homeless individuals and chronically homeless families; and

`(ii) nondisabled homeless families.

`(B) LIMITATION- In awarding funds under this subsection, the Secretary shall not award more than 10 percent of the funds for project sponsors or independent entities that propose to serve nondisabled homeless families.

`(2) ASSISTANCE-

`(A) INDIVIDUALS WITH DISABILITIES- A collaborative applicant that receives assistance under section 422 to implement a project that involves the construction, or acquisition and rehabilitation, of new permanent housing units described in paragraph (1), for individuals and families described in paragraph (1)(A)(i), shall also receive, as part of the grant, incentives consisting of--

`(i) funds sufficient to provide not more than 10 years of rental assistance, renewable in accordance with section 428;

`(ii) a bonus in an amount to be determined by the Secretary to carry out activities described in this section; and

`(iii) the technical assistance needed to ensure the financial viability and programmatic effectiveness of the project.

`(B) NONDISABLED HOMELESS FAMILIES- A collaborative applicant that receives assistance under section 422 to implement a project that involves the construction, or acquisition and rehabilitation, of new permanent housing units described in paragraph (1), for nondisabled homeless families, shall also receive incentives consisting of--

`(i) a bonus in an amount to be determined by the Secretary to carry out activities described in this section; and

`(ii) the technical assistance needed to ensure the financial viability and programmatic effectiveness of the project.

`(3) ELIGIBLE APPLICANTS- To be eligible to receive a grant under this subtitle to carry out activities to create new permanent housing stock for individuals and families described in paragraph (1), an applicant shall be a collaborative applicant as described in this subtitle, a private nonprofit or for profit organization, a public-private partnership, a public housing agency, or an instrumentality of a State or local government.

`(4) LOCATION- To the extent practicable, a collaborative applicant that receives a grant under this subtitle to create new permanent housing stock shall ensure that the housing is located in a mixed-income environment.

`(5) DEFINITION- In this subsection, the term `nondisabled homeless family' means a homeless family that does not have an adult head of household with a disabling condition, as defined in section 401(1)(B).

`(f) Repayment of Assistance and Prevention of Undue Benefits-

`(1) REPAYMENT- If a recipient (or a project sponsor receiving funds from the recipient) receives assistance under section 422 to carry out a project that consists of activities described in paragraph (1) or (2) of subsection (a) and the project ceases to provide transitional or permanent housing--

`(A) earlier than 10 years after operation of the project begins, the Secretary shall require the recipient (or the project sponsor receiving funds from the recipient) to repay 100 percent of the assistance; or

`(B) not earlier than 10 years, but earlier than 15 years, after operation of the project begins, the Secretary shall require the recipient (or the project sponsor receiving funds from the recipient) to repay 20 percent of the assistance for each of the years in the 15-year period for which the project fails to provide that housing.

`(2) PREVENTION OF UNDUE BENEFITS- Except as provided in paragraph (3), if any property is used for a project that receives assistance under subsection (a) and consists of activities described in paragraph (1) or (2) of subsection (a), and the sale or other disposition of the property occurs before the expiration of the 15-year period beginning on the date that operation of the project begins, the recipient (or the project sponsor receiving funds from the recipient) who received the assistance shall comply with such terms and conditions as the Secretary may prescribe to prevent the recipient (or a project sponsor receiving funds from the recipient) from unduly benefitting from such sale or disposition.

`(3) EXCEPTION- A recipient (or a project sponsor receiving funds from the recipient) shall not be required to make the repayments, and comply with the terms and conditions, required under paragraph (1) or (2) if--

`(A) the sale or disposition of the property used for the project results in the use of the property for the direct benefit of very low-income persons; or

`(B) all of the proceeds of the sale or disposition are used to provide transitional or permanent housing meeting the requirements of this subtitle.';

(3) in section 425 (42 U.S.C. 11385), by striking subsection (c) and inserting the following:

`(c) Services- Subject to section 423(a)(6), supportive services may include such services as--

`(1) establishing and operating a child care services program for families experiencing homelessness;

`(2) establishing and operating an employment assistance program, including providing job training;

`(3) providing outpatient health services, food, and case management;

`(4) providing assistance in obtaining permanent housing, employment counseling, and nutritional counseling;

`(5) providing outreach services, life skills training, and housing search and counseling services;

`(6) providing assistance in obtaining other Federal, State, and local assistance available for residents of supportive housing (including mental health benefits, employment counseling, and medical assistance, but not including major medical equipment);

`(7) providing legal services for purposes including requesting reconsiderations and appeals of veterans and public benefit claim denials and resolving outstanding warrants that interfere with an individual's ability to obtain and retain housing;

`(8) providing--

`(A) transportation services that facilitate an individual's ability to obtain and maintain employment;

`(B) income assistance;

`(C) health care; and

`(D) other supportive services necessary to obtain and maintain housing; and

`(9) providing other services determined by the Secretary (either at the Secretary's initiative or on the basis of adequate justification by an applicant) to be directly relevant to allowing persons experiencing homelessness to access and retain housing.';

(4) in section 426 (42 U.S.C. 11386)--

(A) in subsection (a)--

(i) in paragraph (1), by striking `Applications' and all that follows through `shall' and inserting `Applications for assistance under section 422 shall';

(ii) in paragraph (2)--

(I) by striking subparagraph (B) and inserting the following:

`(B) a description of the size and characteristics of the population that would occupy housing units or receive supportive services assisted under this subtitle;'; and

(II) in subparagraph (E), by striking `in the case of projects assisted under this title that do not receive assistance under such sections,'; and

(iii) in paragraph (3), in the last sentence, by striking `recipient' and inserting `recipient (or a project sponsor receiving funds from the recipient)';

(B) by striking subsections (b) and (c) and inserting:

`(b) Selection Criteria- The Secretary shall award funds to collaborative applicants, and other eligible applicants that have been approved by the Secretary, by a national competition based on criteria established by the Secretary, which shall include--

`(1) the capacity of the applicant based on the past performance and management of the applicant;

`(2) if applicable, previous performance regarding homelessness prevention, housing, and services programs funded in any fiscal year prior to the date of submission of the application;

`(3) the plan by which--

`(A) access to appropriate permanent housing will be secured if the proposed project does not include permanent housing; and

`(B) access to outcome-effective supportive services will be secured for residents or consumers involved in the project who are willing to use the services;

`(4) if applicable, the extent to which an evaluation for the project will--

`(A) use periodically collected information and analysis to determine whether the project has resulted in enhanced stability and well-being of the residents or consumers served by the project;

`(B) include evaluations obtained directly from the individuals or families served by the project; and

`(C) be submitted by the project sponsors for the grant, to the collaborative applicant, for review and use in assessments, conducted by the collaborative applicant, consistent with the duty of the collaborative applicant to ensure effective outcomes that contribute to the goal of preventing and ending homelessness in the geographic area served by the collaborative applicant;

`(5) the need for the type of project proposed in the geographic area to be served and the extent to which prioritized programs meet unmet needs;

`(6) the extent to which the amount of assistance to be provided under this subtitle will be supplemented with resources from other public and private sources, including mainstream programs identified by the Government Accountability Office in the 2 reports described in section 102(a)(5)(B);

`(7) demonstrated coordination with the other Federal, State, local, private, and other entities serving individuals experiencing homelessness in the planning and operation of projects, to the extent practicable;

`(8) the extent to which the membership of the collaborative applicant involved represents the composition described in section 402(b) and the extent of membership involvement in the application process; and

`(9) such other factors as the Secretary determines to be appropriate to carry out this subtitle in an effective and efficient manner.

`(c) Required Agreements- The Secretary may not provide assistance for a proposed project under this subtitle unless the collaborative applicant involved agrees--

`(1) to ensure the operation of the project in accordance with the provisions of this subtitle;

`(2) to conduct an ongoing assessment of access to mainstream programs referred to in subsection (b)(4);

`(3) to monitor and report to the Secretary the progress of the project;

`(4) to develop and implement procedures to ensure--

`(A) the confidentiality of records pertaining to any individual provided family violence prevention or treatment services through the project; and

`(B) that the address or location of any family violence shelter project assisted under this subtitle will not be made public, except with written authorization of the person responsible for the operation of such project;

`(5) to ensure, to the maximum extent practicable, that individuals and families experiencing homelessness are involved, through employment, provision of volunteer services, or otherwise, in constructing, rehabilitating, maintaining, and operating facilities for the project and in providing supportive services for the project;

`(6) if a collaborative applicant receives funds under subtitle C to carry out the payment of administrative costs described in section 423(a)(7), to establish such fiscal control and fund accounting procedures as may be necessary to assure the proper disbursal of, and accounting for, such funds in order to ensure that all financial transactions carried out with such funds are conducted, and records maintained, in accordance with generally accepted accounting principles; and

`(7) to comply with such other terms and conditions as the Secretary may establish to carry out this subtitle in an effective and efficient manner.';

(C) in subsection (d), in the first sentence, by striking `recipient' and inserting `recipient or project sponsor';

(D) by striking subsection (e);

(E) by redesignating subsections (f), (g), and (h), as subsections (e), (f), and (g), respectively;

(F) in subsection (f) (as redesignated in subparagraph (E)), in the first sentence, by striking `recipient' each place it appears and inserting `recipient or project sponsor';

(G) by striking subsection (i); and

(H) by redesignating subsection (j) as subsection (h);

(5)(A) by repealing section 429 (42 U.S.C. 11389); and

(B) by redesignating sections 427 and 428 (42 U.S.C. 11387, 11388) as sections 431 and 432, respectively; and

(6) by inserting after section 426 the following:

`SEC. 427. ALLOCATION AMOUNTS AND INCENTIVES FOR SPECIFIC ELIGIBLE ACTIVITIES.

`(a) Purpose- The Secretary shall promote--

`(1) permanent housing development activities for--

`(A) homeless individuals with disabilities and homeless families that include such an individual; and

`(B) nondisabled homeless families; and

`(2) prevention activities described in section 423(a)(8).

`(b) Definition- In this section, the term `nondisabled homeless family' means a homeless family that does not include a homeless individual with a disability.

`(c) Annual Portion of Appropriated Amount Available-

`(1) DISABLED HOMELESS INDIVIDUALS AND FAMILIES-

`(A) IN GENERAL- From the amount made available to carry out this subtitle for a fiscal year, a portion equal to not less than 30 percent of the sums made available to carry out subtitle B and this subtitle for that fiscal year shall be used for activities to develop new permanent housing, in order to help create affordable permanent housing for homeless individuals with disabilities and homeless families that include such an individual who is an adult.

`(B) CALCULATION- In calculating the portion of the amount described in subparagraph (A) that is used for activities described in subparagraph (A), the Secretary shall not count funds made available to renew contracts for existing projects (in existence as of the date of the renewal) under section 428.

`(2) PREVENTION ACTIVITIES- From the amount made available to carry out this subtitle for a fiscal year, a portion equal to not more than 5 percent of the sums described in paragraph (1) shall be used for prevention activities described in section 423(a)(8).

`(d) Funding for Acquisition, Construction, and Rehabilitation of Perman