SEC-837 -- SHELTER PLUS CARE. 

 
 (a) In General.-Title IV of the Stewart B. McKinney Homeless Assistance
Act is amended by adding at the end the following:
"Subtitle F-Shelter Plus Care Program
"PART I-SHELTER PLUS CARE: GENERAL REQUIREMENTS
"SEC. 451. PURPOSE.
 
 "The purpose of the program authorized under this subtitle is to
provide rental housing assistance, in connection with supportive
services funded from sources other than this subtitle, to homeless
persons with disabilities (primarily persons who are seriously mentally
ill, have chronic problems with alcohol, drugs, or both, or have
acquired immunodeficiency syndrome and related diseases) and the
families of such persons.
"SEC. 452. 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. 453. SUPPORTIVE SERVICES REQUIREMENTS.
 
 "(a) Matching Funding.-
 
 "(1) In general.-Each recipient shall be required to supplement the
assistance provided under this subtitle with an equal amount of funds
for supportive services from sources other than this subtitle. Each
recipient shall certify to the Secretary its compliance with this
paragraph, and shall include with the certification a description of the
sources and amounts of such supplemental funds.
 
 "(2) Determination of matching amounts.-In calculating the amount of
supplemental funds provided under this subtitle, a recipient may include
the value of any lease on a building, any salary paid to staff to carry
out the program of the recipient, and the value of the time and services
contributed by volunteers to carry out the program of the recipient at
a rate determined by the Secretary.
 
 "(b) Recapture.-If the supportive services and funding for the
supportive services required by this section are not provided, the
Secretary may recapture any unexpended housing assistance.
"SEC. 454. 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 453;
 
 "(7) a description of the mechanisms for developing a housing and
supportive services plan for each person and for monitoring each
person's progress in meeting that plan;
 
 "(8) reasonable assurances satisfactory to the Secretary that the
supportive services will be provided for the full term of the housing
assistance under part II, III, 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. 455. 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. 456. 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. 457. 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. 458. DEFINITIONS.
 
 "For purposes of this subtitle:
 
 "(1) The term `acquired immunodeficiency syndrome and related
diseases' has the meaning given such term in section 853 of the
Cranston-Gonzalez National Affordable Housing Act.
 
 "(2) The term `applicant' means-
 
 "(A) 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 `nonprofit organization' has the meaning given such term
by section 104 of the Cranston-Gonzalez National Affordable Housing Act.
 
 "(6) The term `person with disabilities' has the same meaning given
the term in section 811 of the Cranston-Gonzalez National Affordable
Housing Act.
 
 "(7) The term `public housing agency' has the meaning given such term
in section 3(b)(6) of the United States Housing Act of 1937.
 
 "(8) The term `recipient' means an applicant approved for
participation in the program authorized under this subtitle.
 
 "(9) The term `Secretary' means the Secretary of Housing and Urban
Development.
 
 "(10) The term `seriously mentally ill' means having a severe and
persistent mental or emotional impairment that seriously limits a
person's ability to live independently.
 
 "(11) The term `State' means each of the several States, the District
of Columbia, the Commonwealth of Puerto Rico, the Virgin Islands, Guam,
American Samoa, the Northern Mariana Islands, the Trust Territory of the
Pacific Islands, and any other territory or possession of the United
States.
 
 "(12) The term `supportive services' means assistance that the
Secretary determines (A) addresses the special needs of eligible
persons; and (B) provides appropriate services or assists such persons
in obtaining appropriate services, including health care, mental health
services, substance and alcohol abuse services, child care services,
case management services, counseling, supervision, education, job
training, and other services essential for achieving and maintaining
independent living. 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. 459. AUTHORIZATION OF APPROPRIATIONS.
 
 "(a) In General.-For purposes of the housing program under part II of
this subtitle, there are authorized to be appropriated $80,400,000 for
fiscal year 1991, and $167,200,000 for fiscal year 1992.
 
 "(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 $24,800,000 on or after
October 1, 1990, and $54,200,000 on or after October 1, 1991.
 
 "(c) Part IV.-For purposes of the housing program under part IV of
this subtitle, there are authorized to be appropriated $18,000,000 for
fiscal year 1991, and $37,200,000 or fiscal year 1992.
 
 "(d) Availability.-Sums appropriated under this section shall remain
available until expended.
"PART II-SHELTER PLUS CARE: HOMELESS RENTAL HOUSING ASSISTANCE
"SEC. 461. PURPOSE.
 
 "The Secretary is authorized to use amounts made available under
section 459(a) to provide rental housing assistance in accordance with
the requirements of this part.
"SEC. 462. 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. 463. 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. 464. 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. 465. 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. 466. 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. 471. PURPOSE.
 
 "The Secretary is authorized to use amounts made available under
section 459(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 459(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. 472. FIRE AND SAFETY IMPROVEMENTS.
 
 "Each contract for housing assistance payments entered into using the
authority provided under section 459(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. 473. 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 459(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. 474. 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. 481. PURPOSE.
 
 "The Secretary is authorized to use amounts made available under
section 459(c) of this subtitle only in connection with the provision
of rental housing assistance under section 202 of the Housing Act of
1959, section 811 of the Cranston-Gonzalez National Affordable Housing
Act 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, as appropriate for the purpose of providing
such rental housing assistance.
"SEC. 482. 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. 483. 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. 484. 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.".
 
 (b) Implementation.-Not later than 180 days after the date funds
authorized under section 459 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 F 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 eight-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 date of enactment made by this section,
that are or become available for obligation shall be available for use
under subtitle F of title IV of the McKinney Act, as amended by this
section.
 
 (d) Conforming Amendment.-That part of the table of contents of the
Stewart B. McKinney Homeless Assistance Act that relates to title IV of
such Act is amended by adding at the end the following:
"Subtitle F-Shelter Plus Care Program
"Part I-Shelter Plus Care: General Requirements
"Sec. 451. Purpose.
"Sec. 452. Rental housing assistance.
"Sec. 453. Supportive services requirements; matching funding.
"Sec. 454. Applications.
"Sec. 455. Selection criteria.
"Sec. 456. Required agreements.
"Sec. 457. Termination of assistance.
"Sec. 458. Definitions.
"Sec. 459. Authorization of appropriations.
"Part II-Shelter Plus Care: Homeless Rental Housing Assistance
"Sec. 461. Purpose.
"Sec. 462. Housing assistance.
"Sec. 463. Amount of assistance.
"Sec. 464. Housing standards and rent reasonableness.
"Sec. 465. Tenant rent.
"Sec. 466. Administrative fees.
"Part III-Shelter Plus Care: Moderate Rehabilitation Assistance for
Single Room Occupancy Dwellings
"Sec. 471. Purpose.
"Sec. 472. Fire and safety improvements.
"Sec. 473. Contract requirements.
"Sec. 474. Occupancy.
"Part IV-Section 202 Rental Assistance
"Sec. 481. Purpose.
"Sec. 482. Amount of assistance.
"Sec. 483. Housing standards and rent reasonableness.
"Sec. 484. Administrative fees.".
PART 3-EFFECTIVE DATE