SEC-821 -- AMENDMENT TO McKINNEY ACT. (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. "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 moderate 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 individuals, 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 Cranston-Gonzalez 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. "SEC. 403. GENERAL AUTHORITY. "(a) Grants for Homeless Housing Assistance.- "(1) In general.- "(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 416; 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. "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. "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 being met by available public and private sources in areas with an unusually high incidence of homelessness. For purposes of this section, the term `eligible applicant' means a grantee, Indian tribe, Indian housing authority or private nonprofit organization, except that a grantee shall not be permitted to submit an application if the Secretary finds that the grantee is in noncompliance with sections 406 and 407. "(b) Eligible Activities.-Assistance provided under this section may be used for approved activities under subtitle B and for- "(1) the purchase, lease, rehabilitation, renovation, operation, or conversion of facilities to assist the homeless; "(2) the transitional provision of supportive services designed to meet special needs of homeless persons, including families with children, deinstitutionalized persons, persons with mental disabilities, other persons with disabilities, the elderly, and veterans; and "(3) the provision of supplemental assistance to projects assisted under sections 412 and 413 if such assistance is required to meet the special needs of homeless persons residing in such projects. "(c) Applications.-Assistance under this section shall be allocated among approvable applications submitted by eligible applicants. Applications for assistance under this section shall be submitted by an applicant in such form and in accordance with such procedures as the Secretary shall establish. Such applications shall contain- "(1) a description of the proposed activities; "(2) a description of the size and characteristics of the homeless population that would be served by the proposed activities; "(3) a description of the public and private resources that are expected to be made available in connection with the proposed activities; "(4) assurances satisfactory to the Secretary that any property purchased, leased, rehabilitated, renovated, or converted with assistance under this section (except for property to be used as emergency shelter in accordance with section 412) shall be operated for not less than 10 years for the purpose specified in the application; "(5) evidence in a form acceptable to the Secretary that the proposed activities will meet urgent needs of homeless persons that are not being met by available public and private sources; "(6) if submitted by a private nonprofit organization, a certification from the public official responsible for submitting a housing strategy in accordance with section 105 of the Cranston-Gonzalez National Affordable Housing Act that the application is consistent with the approved housing strategy; and "(7) such other information or certifications that the Secretary determines to be necessary to achieve the purposes of this section. "(d) Selection Criteria.- "(1) In general.-The Secretary shall establish selection criteria for assistance under this subsection, which shall principally take into account- "(A) the extent to which the proposed activities meet urgent needs of homeless persons that are not being met by available public and private sources; "(B) the extent to which the area in which the proposed activities are to be carried out is an area with an unusually high incidence of homelessness; and "(C) the extent to which such area is not being served by current programs to assist homeless persons. "(2) Additional criteria.-Selection criteria established by the Secretary shall also take into account- "(A) the extent to which the proposed activities would make available as housing for homeless persons property owned by the Federal Government, a State, a unit of general local government, or other public entity, including in rem property, public buildings, and public land; "(B) the extent to which the proposed activities would be carried out in a jurisdiction that has demonstrated exemplary coordination among State and local agencies administering housing, child welfare, and public assistance activities; "(C) the extent to which the applicant has demonstrated the capacity to carry out the proposed activities; and "(D) such other factors as the Secretary determines to be appropriate to ensure that funds made available under this section are used effectively. "(e) Special Rules for Supplemental Assistance for Facilities To Assist the Homeless.- "(1) In general.-The Secretary may not provide assistance under subsection (b)(3) unless the Secretary determines that- "(A) the applicant has made reasonable efforts to utilize all available local resources and resources available under the other provisions of this title; and "(B) other resources are not sufficient or are not available to carry out the purpose for which the assistance is being sought. No assistance provided under subsection (b)(3) may be used to supplant any non-Federal resources provided with respect to any project. "(2) Health services.-Not more than $10,000 of any grant or advance under subsection (b)(3) may be used for outpatient health services (excluding the cost of any rehabilitation or conversion of a structure to accommodate the provision of such services). "(3) Guidelines.-The Secretary of Housing and Urban Development and the Secretary of Health and Human Services shall jointly establish guidelines for determining under this section the appropriateness of proposed outpatient health services. Such guidelines shall include such provisions as are necessary to enable the Secretary of Housing and Urban Development to meet the time limits under this section for the final selection of applications for assistance. "SEC. 406. RESPONSIBILITIES OF GRANTEES AND PROJECT SPONSORS. "(a) Matching Requirements.- "(1) In general.-Each grantee shall be required to supplement the grants provided under this title for acquisition, rehabilitation, or construction activities, except for assistance described in section 421, with an equal amount of funds from non-Federal sources. Each grantee shall certify to the Secretary its compliance with this subsection, describing the sources and amounts of such supplemental funds. Supplemental funds may include the value of any donated material or building, the value of any lease on a building, any salary paid to staff to carry out the program of a project sponsor, and the value of the time and services contributed by volunteers to carry out the program of a project sponsor at a rate determined by the Secretary. "(2) State matching requirement.-Each grantee under this title that is a State shall be required to supplement the assistance provided under this title with an amount of funds from sources other than this title equal to the difference between the amount received under this title and $100,000. If the amount received by the State is $100,000 or less, the State may not be required to supplement the assistance provided under this title. "(3) Benefit of match.-A State grantee shall obtain any matching amounts required under paragraph (2) in a manner so that local governments, Indian tribes, agencies, and local nonprofit organizations receiving assistance from the grant that are least capable of providing the recipient State with such matching amounts receive the benefit of the $100,000 subtrahend under paragraph (2). "(b) Housing Quality.-Each grantee shall assure that housing assisted under this subtitle shall be decent, safe, and sanitary and, when appropriate, meet all applicable State and local housing codes, building codes, and licensing requirements in the jurisdiction in which the housing is located. "(c) Consistency With Housing Strategy.-Each grantee shall certify, to the satisfaction of the Secretary, that activities undertaken by project sponsors with assistance from the grantee are consistent with the housing strategy submitted by the grantee in accordance with section 105 of the Cranston-Gonzalez National Affordable Housing Act. "(d) Assistance to Homeless Persons.-Each grantee shall certify that each project sponsor shall administer, in good faith, a policy designed to ensure that any shelter or housing assisted under this subtitle is free from the illegal use, possession, or distribution of drugs or alcohol by its beneficiaries. "(e) Limitation on Use of Funds.-Each grantee shall certify, to the satisfaction of the Secretary, that neither assistance received under this subtitle nor any State or local government funds used to supplement such assistance will be used to replace other public funds previously used, or designated for use, to assist the homeless. "(f) Civil Rights Compliance.-Each grantee shall certify, to the satisfaction of the Secretary, that the grant will be conducted and administered in conformity with title VI of the Civil Rights Act of 1964 (Public Law 88-352), and the Fair Housing Act and the grantee will affirmatively further fair housing. "(g) Reports.- "(1) In general.-Each grantee shall submit to the Secretary, in such form and at such time as the Secretary shall prescribe, a performance and evaluation report on the use of amounts made available under this subtitle, together with the grantee's assessment of the relationship of such usage to the grantee's approved housing strategy. The report shall include information on the number of homeless persons served and the reasons for their homelessness. The report shall also specify the amounts made available under this subtitle for each approved activity under subtitle B. The report shall be made available to the public so that citizens, public agencies, and other interested parties have an opportunity to comment on the report prior to its submission. The report shall include a summary of any comments received from interested parties. "(2) Consultation.-The Secretary shall consult with national associations of States, local governments, and other housing interests to develop uniform recordkeeping, performance reporting, and auditing requirements. After considering the results of such consultations, the Secretary shall establish uniform recordkeeping, performance reporting, and auditing requirements for assistance made available under this subtitle. "(h) Site Control.- "(1) In general.-Each grantee or project sponsor shall furnish reasonable assurances that it will own or have control of a site for the proposed project not later than 6 months after notification of an award for grant assistance. A suitable site different from the site specified in the application satisfies the requirement of this subsection. If ownership or control of a site is not obtained within 1 year after notification of an award for grant assistance, the grant shall be recaptured and reallocated. "(2) Waiver.-The Secretary may waive the requirement under paragraph (1) for any proposed project for which the Secretary determines such requirement is inapplicable because, under the application, the families and individuals served own or control, or will eventually own or control, the site. "(i) Prevention of Undue Benefits.-The Secretary may prescribe such terms and conditions as he deems necessary to prevent project sponsors from unduly benefiting from the sale or other disposition of projects constructed, rehabilitated, or acquired with assistance under this subtitle other than a sale or other disposition resulting in the use of the project for the direct benefit of very low-income families. "(j) Confidentiality.-Each grantee shall develop and implement procedures to ensure the confidentiality of records pertaining to any individual provided family violence prevention or treatment services under any project assisted under this title and to ensure that the address or location of any family violence shelter project assisted under this title will, except with written authorization of the person or persons responsible for the operation of such shelter, not be made public. "(k) Additional Requirements.-The Secretary may establish such other program requirements as the Secretary determines are necessary for grantees to administer activities authorized under this subtitle in an efficient manner. "SEC. 407. ADMINISTRATIVE PROVISIONS. "(a) Limitation on Administrative Expenses.-A grantee may not use more than 5 percent of the assistance received under this subtitle for administrative purposes. "(b) Income Eligibility.-A homeless person shall be eligible for assistance under any program provided by this subtitle, or by the amendments made by this subtitle, only if the person has income not exceeding 50 percent of the median income for the area, as adjusted in accordance with section 3(b)(2) of the United States Housing Act of 1937. "(c) Flood Elevation Requirements.-Flood protection standards applicable to housing acquired, rehabilitated, or assisted under any provision of this subtitle shall be no more restrictive than the standards applicable to any other program administered by the Secretary. "(d) Applicability of Section 104(g) of the Housing and Community Development Act of 1974.-The provisions of, and regulations and procedures applicable under, section 104(g) of the Housing and Community Development Act of 1974 shall apply to assistance and projects under this subtitle. "(e) GAO Audits.-Insofar as they relate to funds provided under this section, the financial transactions of grantees and project sponsors may be audited by the General Accounting Office under such rules and regulations as may be prescribed by the Comptroller General of the United States. The representatives of the General Accounting Office shall have access to all books, accounts, records, reports, files, and other papers, things, or property belonging to, or in use by, such grantees and project sponsors pertaining to the financial transactions and necessary to facilitate the audit. "SEC. 408. AUTHORIZATION OF APPROPRIATIONS. "There are authorized to be appropriated to carry out this title such sums as may be necessary. Any amount appropriated under this section shall remain available until expended. "SEC. 409. REPORTS TO CONGRESS. "The Secretary shall submit annually to the Congress a report summarizing the activities carried out under this title and setting forth the findings, conclusions, and recommendations of the Secretary as a result of the activities. The report shall summarize and assess the results of performance reports provided in accordance with section 406(g). The report shall be submitted not later than 6 months after the end of each fiscal year. "Subtitle B-Approved Activities "SEC. 411. HOMELESSNESS PREVENTION. "(a) Definition.-Assistance to help very low-income families avoid becoming homeless may include activities other than those that the Secretary has found to be inconsistent with the purposes of this Act. "(b) Limitation on Financial Assistance.-A grantee may provide financial assistance to very low-income families who have received eviction notices or notices of termination of utility services if- "(1) the inability of the family to make the required payments is due to a sudden reduction in income; "(2) the assistance is necessary to avoid the eviction or termination of services; "(3) there is a reasonable prospect that the family will be able to resume payments within a reasonable period of time; and "(4) the assistance will not supplant funding for preexisting homelessness prevention activities from other sources. "SEC. 412. EMERGENCY SHELTER. "(a) Definition.-A project shall be considered `emergency shelter' if it is designed to provide overnight sleeping accommodations for homeless persons. An emergency shelter may include appropriate eating and cooking accommodations. "(b) Minimum Standards of Habitability.-The Secretary shall prescribe such minimum standards of habitability as the Secretary determines to be appropriate to ensure that emergency shelters assisted under this section are environments that provide appropriate privacy, safety, and sanitary and other health-related conditions for homeless persons and families. Grantees are authorized to establish standards of habitability in addition to those prescribed by the Secretary. "(c) Types of Assistance.-A grantee may provide the following assistance to a project sponsor of emergency shelter: "(1) a grant for the renovation, major rehabilitation, or conversion of buildings to be used as emergency shelters; "(2) a grant for the provision of supportive services if such services do not supplant any services provided by the local government during any part of the immediately preceding 12-month period; and "(3) annual payments for maintenance, operation, insurance, utilities, and furnishings. "(d) Program Requirements.-A grantee may approve assistance for a project under this subsection only if the project sponsor has agreed that it will- "(1) in the case of assistance involving major rehabilitation or conversion of a building, maintain the building as a shelter for homeless persons and families for not less than a 10-year period; "(2) in the case of assistance involving rehabilitation (other than major rehabilitation or conversion of a building), maintain the building as a shelter for homeless persons and families for not less than a 3-year period; "(3) in the case of assistance involving only activities described in paragraphs (2) and (3) of subsection (c), provide services or shelter to homeless persons and families at the original site or structure or other sites or structures serving the same general population for the period during which such assistance is provided; "(4) comply with the standards of habitability prescribed by the Secretary and (if applicable) the State or unit of general local government; and "(5) assist homeless persons in obtaining- "(A) appropriate supportive services, including permanent housing, medical and mental health treatment, counseling, supervision, and other services essential for achieving independent living; and "(B) other Federal, State, local, and private assistance available for homeless persons. "SEC. 413. TRANSITIONAL HOUSING FOR THE HOMELESS. "(a) Definition.-A project shall be considered `transitional housing' if it is designed to facilitate the movement of homeless persons to independent living within 24 months (or such longer period as the Secretary determines is necessary to facilitate the transition of homeless persons to independent living). Transitional housing includes housing primarily designed to serve deinstitutionalized homeless persons and other homeless persons with mental disabilities, and homeless families with children. "(b) Types of Assistance.-A grantee may provide the following assistance to a project sponsor of transitional housing: "(1) A grant for the cost of acquisition, substantial rehabilitation, or acquisition and rehabilitation of an existing structure for use as transitional housing. The repayment of any outstanding debt owed on a loan made to purchase an existing structure shall be considered to be a cost of acquisition eligible for an advance under this paragraph if the structure was not used as transitional housing prior to the receipt of assistance. "(2) A grant for moderate rehabilitation of an existing structure for use as transitional housing. "(3) A grant, in an amount not to exceed $400,000, for the new construction of a structure for use in the provision of supportive housing. "(4) Annual payments for operating costs of transitional housing (including transitional housing that is newly constructed with assistance provided from sources other than this Act) not to exceed 75 percent of the annual operating costs of such housing. "(5) Technical assistance in- "(A) establishing transitional housing in an existing structure; "(B) operating transitional housing in existing structures and in structures that are newly constructed with assistance provided from sources other than this Act; and "(C) providing supportive services to the residents of transitional housing (including transitional housing that is newly constructed with assistance provided from sources other than this Act). "(6) A grant for establishing and operating an employment assistance program for the residents of transitional housing, which shall include- "(A) employment of residents in the operation and maintenance of the housing; and "(B) the payment of the transportation costs of residents to places of employment. "(7) A grant to establish and operate a child care services program for homeless families as follows: "(A) A program under this paragraph shall include- "(i) establishing, licensing, and operating an on-site child care facility for the residents of transitional housing; or "(ii) making contributions for the child care costs of residents of transitional housing to existing community child care programs and facilities; and "(iii) counseling designed to inform the residents of transitional housing of public and private child care services for which they are eligible. "(B) A grant under this paragraph for any child care services program shall not exceed the amount equal to 75 percent of the cost of operating the program for a period of up to 5 years. "(C) Child care services provided with respect to a child care services program assisted under this paragraph shall meet any applicable State and local laws and regulations. A project sponsor may receive assistance under both paragraphs (1) and (2). "(c) Program Requirements.- "(1) Required agreements.-A grantee may approve assistance for a project under this section only if the project sponsor has agreed- "(A) to operate the proposed project as transitional housing for not less than 10 years, except that in the case of any leased property receiving assistance under this subtitle other than for lease of the property, assurances under this paragraph shall be made annually that the project will be operated to assist homeless individuals for such year; "(B) to conduct an ongoing assessment of the supportive services required by the residents of the project; "(C) to provide such residential supervision as the Secretary determines is necessary to facilitate the adequate provision of supportive services to the residents of the project; "(D) to comply with such other terms and conditions as the Secretary or grantee may establish for purposes of carrying out this program in an effective and efficient manner. "(2) Occupant rent.-Each homeless person residing in a facility assisted under this section shall pay as rent an amount determined in accordance with the provisions of section 3(a) of the United States Housing Act of 1937. "(3) Alternative use.-A project may continue to be treated as transitional housing for purposes of this subsection if the grantee determines that such project is no longer needed for use as transitional housing and approves the use of such project for the direct benefit of very low-income families. "SEC. 414. PERMANENT HOUSING FOR HOMELESS PERSONS WITH DISABILITIES. "(a) Definition.-A project shall be considered `permanent housing for homeless persons with disabilities' if it provides community-based long-term housing and supportive services for not more than 8 homeless persons with disabilities (or 16 such persons, but only if not more than 20 percent of the units in a project are designated for such persons). The Secretary may waive the limitation contained in the preceding sentence if the grantee demonstrates that local market conditions dictate the development of a larger project. "(b) Project Design and Siting.-Each project assisted under this subtitle shall be either a home designed solely for housing persons with disabilities or dwelling units in a multifamily housing project, condominium project, or cooperative project. Not more than 1 home may be located on any 1 site and no such home may be located on a site contiguous to another site containing such a home. "(c) Types of Assistance.-A grantee may provide the following assistance to a project sponsor of permanent housing for homeless persons with disabilities: "(1) A grant for the cost of acquisition, substantial rehabilitation, or acquisition and rehabilitation of an existing structure for use as permanent housing for homeless persons with disabilities. The repayment of any outstanding debt owed on a loan made to purchase an existing structure shall be considered to be a cost of acquisition eligible for a grant under this paragraph if the structure was not used as permanent housing for homeless persons with disabilities prior to the receipt of assistance. "(2) A grant for moderate rehabilitation of an existing structure for use as permanent housing for homeless persons with disabilities. "(3) A grant, in an amount not to exceed $400,000, for the new construction of a structure for use in the provision of supportive housing. "(4) Annual payments for operating costs for permanent housing for homeless persons with disabilities (including permanent housing for homeless persons with disabilities that is newly constructed with assistance provided from sources other than this Act), not to exceed 75 percent of the annual operating costs of such housing, and any recipient may reapply for such assistance or for the renewal of such assistance for use during the 10-year period under subsection (d) (unless such assistance is no longer necessary, in the determination of the Secretary). "(5) Technical assistance in- "(A) establishing permanent housing for homeless persons with disabilities in an existing structure; "(B) operating permanent housing for homeless persons with disabilities in existing structures and in structures that are newly constructed with assistance provided from sources other than this Act; and "(C) providing supportive services to the residents of permanent housing for homeless persons with disabilities (including permanent housing for homeless persons with disabilities that is newly constructed with assistance provided from sources other than this Act). "(d) Program Requirements.- "(1) Required agreements.-A grantee may approve assistance for any project under this section only if the project sponsor has agreed- "(A) to operate the proposed project as permanent housing for homeless persons with disabilities for not less than 10 years, except that in the case of projects not receiving a grant under paragraph (1), (2), or (3) of subsection (c), assurances under this subparagraph shall be made annually that the project will be operated for the purpose specified in the application for such year; "(B) to conduct an ongoing assessment of the supportive services required by the residents of the project; "(C) to provide such residential supervision as the Secretary determines is necessary to facilitate the adequate provision of supportive services to the residents of the project; and "(D) to comply with such other terms and conditions as the Secretary or grantee may establish for purposes of carrying out this program in an effective and efficient manner. "(2) State participation.-Each grantee providing assistance to a project under this section shall transmit to the Secretary a letter of participation from the State assuring that the State will facilitate the provision of necessary supportive services to the residents of the project; "(3) Occupant rent.-Each homeless person residing in a project assisted under this section shall pay as rent an amount determined in accordance with the provisions of section 3(a) of the United States Housing Act of 1937. "(4) Alternative use.-A project may continue to be treated as permanent housing for homeless persons with disabilities for purposes of this subsection if the grantee determines that such project is no longer needed for use as such housing and approves the use of such project for the direct benefit of very low-income families. "(5) Tenant selection.- "(A) In general.-A project sponsor owner shall adopt written tenant selection procedures that are satisfactory to the Secretary as (i) consistent with the purpose of improving housing opportunities for very low-income persons with disabilities; and (ii) reasonably related to program eligibility and an applicant's ability to perform the obligations of the lease. Project sponsors shall promptly notify in writing any rejected applicant of the grounds for any rejection. "(B) Authority to limit occupancy.-Notwithstanding any other provision of law, a project sponsor may, with the approval of the grantee, limit occupancy within housing developed under this section to persons with disabilities who have similar disabilities and require a similar set of supportive services in a supportive housing environment. "(6) Renewed funding for short-term lease projects.-The Secretary may not provide assistance under paragraph (4) or (5) of subsection (c) to any project not receiving assistance under paragraph (1), (2), or (3) of such subsection unless assurances have been made under paragraph (1)(A) of this subsection that the project will be operated for the purpose specified in the application for the year for which such assistance is provided. "SEC. 415. TRANSITION TO PERMANENT HOUSING. "(a) Use of Grants.- "(1) In general.-A grant under this section may be used by a grantee to provide grants or loans to help eligible families make the transition to permanent housing. A grantee may use assistance under this section to provide for the payment by very low-income families of security deposits and the cost of rent for a reasonable period of time. "(2) Technical assistance.-The Secretary may provide informational and technical assistance to units of general local government and housing agencies in organizing and developing assistance programs under this section. For purposes of this section, the term `eligible family' means a very low-income family who has resided in emergency shelter or transitional housing and who meets other conditions of eligibility as the Secretary determines to be appropriate. "(3) Financial counseling.-The grantee shall provide counseling regarding household finances and budgeting to any family that receives a grant or loan under this section. "(b) Limitation on Financial Assistance.-A grantee may provide assistance to eligible families in the form of a security deposit and the cost of rent for a reasonable period of time if- "(1) the grantee determines that the rental charge for the subject unit is reasonable in comparison with rents charged for comparable units in the private, unassisted market; "(2) there is a regular income and a reasonable prospect that the family will be able to sustain the rental payments for a reasonable period of time and to repay any loan provided; and "(3) the eligible family has made reasonable efforts to receive assistance under the program of aid to families with dependent children under part A of title IV of the Social Security Act or a similar local, State, or Federal public assistance program. "(c) Participating Landlord.-If an eligible family vacates the rental unit, a landlord participating in this program shall return to the grantee any portion of the security deposit (including reasonable interest) against which such landlord does not have a claim. Any returned funds may be used by a grantee in accordance with section 403(a). "SEC. 416. DEVELOPMENT OF ADDITIONAL APPROVED ACTIVITIES. "The Secretary, in cooperation with grantees and other appropriate parties, shall develop additional approved activities to carry out the purposes of this title. "Subtitle C-Section 8 Single Room Occupancy "SEC. 421. SECTION 8 ASSISTANCE FOR SINGLE ROOM OCCUPANCY PROVISIONS. "(a) Use of Funds.-The amounts made available under this subtitle shall be used only in connection with the moderate rehabilitation of housing described in section 8(n) of the United States Housing Act of 1937 for occupancy by homeless persons, except that such amounts may be used in connection with the moderate rehabilitation of efficiency units if the building owner agrees to pay the additional cost of rehabilitating and operating such units. "(b) Allocation.-The amounts made available under this subtitle shall be allocated by the Secretary on the basis of a national competition among approvable applications to the applicant public housing agencies or other contracting agencies that best demonstrate a need for the assistance under this section and the ability to undertake and carry out a program to be assisted under this subtitle. To be considered for assistance under this section, an applicant shall submit to the Secretary a proposal containing- "(1) a description of the size and characteristics of the population within the applicant's jurisdiction that would occupy single room occupancy dwellings; "(2) a listing of additional commitments from public and private sources that the applicant might be able to provide in connection with the program; "(3) an inventory of suitable housing stock to be rehabilitated with such assistance; and "(4) a description of the interest that has been expressed by builders, developers, and others (including profit and nonprofit organizations) in participating in the program. No single city or urban county shall be eligible to receive more than 10 percent of the assistance made available under this subtitle. "(c) Fire and Safety Improvements.-Each annual contribution contract entered into with the authority provided under this subtitle shall require the installation of a sprinkler system that protects all major spaces, hard wired smoke detectors, and such other fire and safety improvements as may be required by State or local law. For purposes of this subsection, the term `major spaces' means hallways, large common areas, and other areas specified in local fire, building, or safety codes. "(d) Cost Limitation.- "(1) Per unit ceiling.-The total cost of rehabilitation that may be compensated for in an annual contribution contract entered into with the authority provided under this subtitle shall not exceed $15,000 per unit, plus the expenditures required by subsection (d). "(2) Authority to increase.-The Secretary shall increase the limitation contained in paragraph (1) by an amount the Secretary determines is reasonable and necessary to accommodate special local conditions, including- "(A) high construction costs; or "(B) stringent fire or building codes. "(3) Annual adjustment.-The Secretary shall increase the limitation in paragraph (1) on October 1 of each year by an amount necessary to take into account increases in construction costs during the previous 12-month period. "(e) Contract Requirements.-Each contract for annual contributions entered into with a public housing agency or other contracting agency to obligate the authority made available under this subtitle shall- "(1) commit the Secretary to make such authority available to the public housing agency or other contracting agency for an aggregate period of 10 years, and require that any amendments increasing such authority shall be available for the remainder of such 10-year period; "(2) provide the Secretary with the option to renew the contract for an additional period of 10 years, subject to the availability of appropriations; and "(3) provide that, notwithstanding any other provision of law, first priority for occupancy of housing rehabilitated under this subtitle shall be given to homeless persons. "SEC. 422. APPLICABILITY TO INDIANS. "Pursuant to section 201(b) of the United States Housing Act of 1937, this subtitle shall apply to Indian tribes and Indian housing authorities. "Subtitle D-Shelter Plus Care Program "PART I-SHELTER PLUS CARE: GENERAL REQUIREMENTS "SEC. 431. PURPOSE. "The purpose of the program authorized under this subtitle is to provide rental housing assistance, in connection with supportive services funded from sources other than this subtitle, to homeless persons with disabilities (primarily persons who are seriously mentally ill, have chronic problems with alcohol, drugs, or both, or have acquired immunodeficiency syndrome and related diseases) and the families of such persons. "SEC. 432. RENTAL HOUSING ASSISTANCE. "(a) In General.-The Secretary is authorized, in accordance with the provisions of this subtitle, to provide rental housing assistance under parts II, III, and IV. "(b) Funding Limitations.-To the maximum extent practicable, the Secretary shall reserve not less than 50 percent of all funds provided under this subtitle for homeless individuals who are seriously mentally ill or have chronic problems with alcohol, drugs, or both. "SEC. 433. SUPPORTIVE SERVICES REQUIREMENTS. "(a) Matching Funding.- "(1) In general.-Each recipient shall be required to supplement the assistance provided under this subtitle with an equal amount of funds for supportive services from sources other than this subtitle. Each recipient shall certify to the Secretary its compliance with this paragraph, and shall include with the certification a description of the sources and amounts of such supplemental funds. "(2) Determination of matching amounts.-In calculating the amount of supplemental funds provided under this subtitle, a recipient may include the value of any lease on a building, any salary paid to staff to carry out the program of the recipient, and the value of the time and services contributed by volunteers to carry out the program of the recipient at a rate determined by the Secretary. "(b) Recapture.-If the supportive services and funding for the supportive services required by this section are not provided, the Secretary may recapture any unexpended housing assistance. "SEC. 434. APPLICATIONS. "(a) In General.-An application for rental housing assistance under this subtitle shall be submitted by an applicant in such forms and in accordance with such procedures as the Secretary shall establish. "(b) Minimum Contents.-The Secretary shall require that an application identify the need for the assistance in the community to be served and shall contain at a minimum- "(1) a request for housing assistance under part II, III, or IV, or a combination, specifying the number of units requested and the amount of necessary budget authority; "(2) a description of the size and characteristics of the population of eligible persons; "(3) an identification of the need for the program in the community to be served; "(4) the identity of the proposed service provider or providers (which may be, or include, the applicant) and a statement of the qualifications of the provider or providers; "(5) a description of the supportive services that the applicant proposes to assure will be available for eligible persons; "(6) a description of the resources that are expected to be made available to provide the supportive services required by section 433; "(7) a description of the mechanisms for developing a housing and supportive services plan for each person and for monitoring each person's progress in meeting that plan; "(8) reasonable assurances satisfactory to the Secretary that the supportive services will be provided for the full term of the housing assistance under part II, III, or IV, or a combination; and a certification from the applicant that it will fund the supportive services itself if the planned resources do not become available for any reason; "(9) a certification by the public official responsible for submitting the comprehensive housing affordability strategy under section 105 of the Cranston-Gonzalez National Affordable Housing Act that the proposed activities are consistent with the approved housing strategy of the unit of general local government within which housing assistance under this subtitle will be provided; "(10) a plan for- "(A) in the case of rental housing assistance under part II, providing housing assistance; "(B) identifying and selecting eligible persons to participate, including a proposed definition of the term `chronic problems with alcohol, other drugs, or both'; "(C) coordinating the provision of housing assistance and supportive services; "(D) ensuring that the service providers are providing supportive services adequate to meet the needs of the persons served; "(E) obtaining participation of eligible persons who have previously not been assisted under programs designed to assist the homeless or have been considered not capable of participation in these programs; this plan shall specifically address how homeless persons, as defined in section 103(a)(2)(C), (and the families of such persons) will be brought into the program; "(11) in the case of housing assistance under part III, identification of the specific structures that the recipient is proposing for rehabilitation and assistance; and "(12) in the case of housing assistance under part IV, identification of the nonprofit entity that will be the owner or lessor of the property, and identification of the specific structures in which the nonprofit entity proposes to house eligible persons. "SEC. 435. SELECTION CRITERIA. "(a) In General.-The Secretary shall establish selection criteria for a national competition for assistance under this subtitle, which shall include- "(1) the ability of the applicant to develop and operate the proposed assisted housing and supportive services program, taking into account the quality of any ongoing program of the applicant; "(2) geographic diversity among the projects to be assisted; "(3) the need for a program providing housing assistance and supportive services for eligible persons in the area to be served; "(4) the quality of the proposed program for providing supportive services and housing assistance; "(5) the extent to which the proposed funding for the supportive services is or will be available; "(6) the extent to which the project would meet the needs of the homeless persons proposed to be served by the program; "(7) the extent to which the program integrates program recipients into the community served by the program; and "(8) the cost-effectiveness of the proposed program; and "(9) such other factors as the Secretary specifies in regulations to be appropriate for purposes of carrying out the program established by this subtitle in an effective and efficient manner. "(b) Funding Limitation.-No more than 10 percent of the assistance made available under this subtitle for any fiscal year may be used for programs located within any one unit of general local government. "SEC. 436. REQUIRED AGREEMENTS. "The Secretary may not approve assistance under this subtitle unless the applicant agrees- "(1) to operate the proposed program in accordance with the provisions of this subtitle; "(2) to conduct an ongoing assessment of the housing assistance and supportive services required by the participants in the program; "(3) to assure the adequate provision of supportive services to the participants in the program; and "(4) to comply with such other terms and conditions as the Secretary may establish for purposes of carrying out the program in an effective and efficient manner. "SEC. 437. TERMINATION OF ASSISTANCE. "(a) Authority.-If an eligible individual who receives assistance under this subtitle violates program requirements, the recipient may terminate assistance in accordance with the process established pursuant to subsection (b). "(b) Procedure.-In terminating assistance under this section, the recipient shall provide a formal process that recognizes the rights of individuals receiving such assistance to due process of law. "SEC. 438. DEFINITIONS. "For purposes of this subtitle: "(1) The term `acquired immunodeficiency syndrome and related diseases' has the same meaning given that term in section 853 of the Cranston-Gonzalez National Affordable Housing Act. "(2) The term `applicant' means- "(A) in the case of rental housing assistance under parts II and IV, a State, unit of general local government, or Indian tribe; and "(B) in the case of single room occupancy housing under the section 8 moderate rehabilitation program under part III (i) a State, unit of general local government, or Indian tribe (that shall be responsible for assuring the provision of supportive services and the overall administration of the program), and (ii) a public housing agency (that shall be primarily responsible for administering the housing assistance under part III). "(3) The term `eligible person' means a homeless person with disabilities (primarily persons who are seriously mentally ill, have chronic problems with alcohol, drugs, or both, or have acquired immunodeficiency syndrome and related diseases) and the family of such a person. "(4) The term `Indian tribe' has the meaning given such term in section 102 of the Housing and Community Development Act of 1974. "(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 `public housing agency' has the meaning given such term in section 3(b)(6) of the United States Housing Act of 1937. "(7) The term `recipient' means an applicant approved for participation in the program authorized under this subtitle. "(8) The term `Secretary' means the Secretary of Housing and Urban Development. "(9) The term `seriously mentally ill' means having a severe and persistent mental or emotional impairment that seriously limits a person's ability to live independently. "(10) The term `State' means each of the several States, the District of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam, American Samoa, the Northern Mariana Islands, the Trust Territory of the Pacific Islands, and any other territory or possession of the United States. "(11) The term `supportive services' means assistance that the Secretary determines (A) addresses the special needs of eligible persons; and (B) provides appropriate services or assists such persons in obtaining appropriate services, including health care, mental health services, substance and alcohol abuse services, child care services, case management services, counseling, supervision, education, job training, and other services essential for achieving and maintaining independent living. In-patient acute hospital care shall not qualify as a supportive service. "(13) The term `unit of general local government' has the meaning given such term in section 102 of the Housing and Community Development Act of 1974. "SEC. 439. AUTHORIZATION OF APPROPRIATIONS. "(a) In General.-For purposes of the housing program under part II of this subtitle, there are authorized to be appropriated such sums as may be necessary. "(b) Part III.-For purposes of the housing program under part III of this subtitle, the budget authority available under section 5(c) of the United States Housing Act of 1937 for assistance under section 8(e)(2) of such Act is authorized to be increased by such sums as may be necessary. "(c) Part IV.-For purposes of the housing program under part IV of this subtitle, there are authorized to be appropriated such sums as may be necessary. "(d) Availability.-Sums appropriated under this section shall remain available until expended. "PART II-SHELTER PLUS CARE: HOMELESS RENTAL HOUSING ASSISTANCE "SEC. 441. PURPOSE. "The Secretary is authorized to use amounts made available under section 439(a) to provide rental housing assistance in accordance with the requirements of this part. "SEC. 442. HOUSING ASSISTANCE. "Where necessary to assure that the provision of supportive services to persons is feasible, a recipient may require that a person participating in the program live (1) in a particular structure or unit for up to the first year of participation, and (2) within a particular geographic area for the full period of participation or the period remaining after the period referred to in paragraph (1). "SEC. 443. AMOUNT OF ASSISTANCE. "The contract with a recipient for assistance under this part shall be for a term of 5 years. Each contract shall provide that the recipient shall receive aggregate amounts not to exceed the appropriate existing housing fair market rent limitation under section 8(c) of the United States Housing Act of 1937 in effect at the time the application is approved. At the option of the recipient and subject to the availability of such amounts, the recipient may receive in any year (1) up to 25 percent of such amounts or (2) such higher percentage as the Secretary may approve upon a demonstration satisfactory to the Secretary that the recipient has entered into firm financial commitments to ensure that the housing assistance described in the application will be provided for the full term of the contract. Any amounts not needed for a year may be used to increase the amount available in subsequent years. Each recipient shall ensure that the assistance provided by the Secretary, and any amounts provided from other sources, are managed so that the housing assistance described in the application is provided for the full term of the assistance. "SEC. 444. HOUSING STANDARDS AND RENT REASONABLENESS. "(a) Standards Required.-The Secretary shall require that- "(1) before any assistance may be provided to or on behalf of the person, each unit shall be inspected by the applicant directly or by another entity, including the local public housing agency (or if no such agency exists in the applicable area, an entity selected by the Secretary), to determine that the unit meets the housing quality standards under section 8 of the United States Housing Act of 1937 and that the occupancy charge for the dwelling unit is reasonable; and "(2) the recipient shall make at least annual inspections of each unit during the contract term. "(b) Prohibition.-No assistance may be provided for a dwelling unit (1) for which the occupancy charge is not reasonable, or (2) which fails to meet the housing standards, unless the owner promptly corrects the deficiency and the recipient verifies the correction. "SEC. 445. TENANT RENT. "Each tenant shall pay as rent an amount determined in accordance with the provisions of section 3(a)(1) of the United States Housing Act of 1937. "SEC. 446. ADMINISTRATIVE FEES. "From amounts made available under appropriations Acts, the Secretary shall make amounts available to pay the entity administering the housing assistance an administrative fee in an amount determined appropriate by the Secretary for the costs of administering the housing assistance. "PART III-SHELTER PLUS CARE: SECTION 8 MODERATE REHABILITATION ASSISTANCE FOR SINGLE ROOM OCCUPANCY DWELLINGS "SEC. 451. PURPOSE. "The Secretary is authorized to use amounts made available under section 439(b) of this subtitle only in connection with the moderate rehabilitation of single room occupancy housing described in section 8(n) of the United States Housing Act of 1937 for occupancy by homeless persons. However, amounts made available under section 439(b) may be used in connection with the moderate rehabilitation of efficiency units if the building owner agrees to pay the additional cost of rehabilitating and operating the efficiency units. "SEC. 452. FIRE AND SAFETY IMPROVEMENTS. "Each contract for housing assistance payments entered into using the authority provided under section 439(b) shall require the installation of a sprinkler system that protects all major spaces, hard-wired smoke detectors, and such other fire and safety improvements as may be required by State or local law. For purposes of this section, the term `major spaces' means hallways, large common areas, and other areas specified in local fire, building, or safety codes. "SEC. 453. CONTRACT REQUIREMENTS. "Each contract for annual contributions entered into by the Secretary with a public housing agency to obligate the authority made available under section 439(b) shall- "(1) commit the Secretary to make the authority available to the public housing agency for an aggregate period of 10 years, and require that any amendments increasing the authority shall be available for the remainder of such 10-year period; "(2) provide the Secretary with the option to renew the contract for an additional period of 10 years, subject to the availability of authority; and "(3) provide that, notwithstanding any other provision of law, first priority for occupancy of housing rehabilitated under this part III shall be given to homeless persons. "SEC. 454. OCCUPANCY. "(a) Occupancy Agreement.-The occupancy agreement between the tenant and the owner shall be for at least one month. "(b) Vacancy Payments.-If an eligible person vacates a dwelling unit before the expiration of the occupancy agreement, no assistance payment may be made with respect to the unit after the month during which the unit was vacated, unless it is occupied by another eligible person. "PART IV-SHELTER PLUS CARE: SECTION 202 RENTAL ASSISTANCE "SEC. 461. PURPOSE. "The Secretary is authorized to use amounts made available under section 439(c) of this subtitle only in connection with the provision of rental housing assistance under section 202 of the Housing Act of 1959 in fiscal year 1991 or section 811 of the Cranston-Gonzalez National Affordable Housing Act in fiscal year 1992 for very low-income eligible persons. The contract between the Secretary and the recipient shall require the recipient to enter into contracts with owners or lessors of housing meeting the requirements of section 202 or section 611 for the purpose of providing such rental housing assistance. "SEC. 462. AMOUNT OF ASSISTANCE. "The contract with a recipient of assistance under this part shall be for a term of 5 years. Each contract shall provide that the recipient shall receive aggregate amounts not to exceed the appropriate existing housing fair market rent limitation under section 8(c) of the United States Housing Act of 1937 in effect at the time the application is approved. Each recipient shall ensure that the assistance provided by the Secretary, and any amounts provided from other sources, are managed so that the housing assistance described in the application is provided for the full term of the assistance. "SEC. 463. HOUSING STANDARDS AND RENT REASONABLENESS. "(a) In General.-The Secretary shall require that (1) the recipient inspect each unit before any assistance may be provided to or on behalf of the person to determine that the occupancy charge for the housing being or to be provided is reasonable and that each unit meets housing standards established by the Secretary for the purpose of this part, and (2) the recipient make at least annual inspections of each unit during the contract term. (b) Prohibition.-No assistance may be provided for a dwelling unit (1) for which the occupancy charge is not reasonable, or (2) which fails to meet the housing standards, unless the owner or lessor, as the case may be, promptly corrects the deficiency and the recipient verifies the correction. "SEC. 464. ADMINISTRATIVE FEES. "From amounts made available under appropriations Acts, the Secretary shall make amounts available to pay the nonprofit entity that is the owner or lessor of the housing assisted under this part an administrative fee in an amount determined appropriate by the Secretary for the costs of administering the housing assistance. "Subtitle E-Miscellaneous "SEC. 471. ENVIRONMENTAL REVIEW. "The provisions of, and the regulations and procedures applicable under, section 104(g) of the Housing and Community Development Act of 1974 shall apply to assistance and projects under this title.". (b) Implementation.-Not later than 180 days after the date funds authorized under section 439 of the Stewart B. McKinney Homeless Assistance Act, as amended by this section, first become available for obligation, the Secretary shall by notice establish such requirements as may be necessary to carry out the provisions of subtitle D of title IV of that Act. Such requirements shall be subject to section 553 of title 5, United States Code. The Secretary shall issue regulations based on the initial notice before the expiration of the 8-month period following the date of the notice. The Secretary shall issue regulations based on the initial notice before the expiration of the 8-month period following the date of the notice. In developing program guidelines and regulations to implement such subtitle, the Secretary of Housing and Urban Development may consult with the Secretary of Health and Human Services with respect to supportive services aspects of this subtitle. (c) Transition Provisions.-Amounts appropriated for use under subtitle D of title IV of the Stewart B. McKinney Homeless Assistance Act, as it existed immediately before the effective date of the amendment made by this section, that are or become available for obligation shall be available for use under subtitle D of title IV of the Stewart B. McKinney Homeless Assistance Act, as amended by this section.