[Congressional Bills 103th Congress] [From the U.S. Government Publishing Office] [H.R. 2517 Referred in Senate (RFS)] 103d CONGRESS 1st Session H. R. 2517 _______________________________________________________________________ IN THE SENATE OF THE UNITED STATES June 29 (legislative day, June 22), 1993 Received; read twice and referred to the Committee on Banking, Housing, and Urban Affairs _______________________________________________________________________ AN ACT To establish certain programs and demonstrations to assist States and communities in efforts to relieve homelessness, assist local community development organizations, and provide affordable rental housing for low-income families, 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 ``Homeless and Community Development Amendments Act of 1993''. SEC. 2. INNOVATIVE HOMELESS INITIATIVES DEMONSTRATION PROGRAM. (a) In General.--Subtitle E of title IV of the Stewart B. McKinney Homeless Assistance Act is amended by adding after section 443 (42 U.S.C. 11402) the following new section: ``SEC. 444. INNOVATIVE HOMELESS INITIATIVES DEMONSTRATION PROGRAM. ``(a) Establishment of Demonstration.--The Secretary shall carry out a demonstration under this section under which the Secretary may provide financial and technical assistance-- ``(1) to metropolitan cities, urban counties, units of general local government, Indian tribes, and private nonprofit organizations to demonstrate the desirability and feasibility of carrying out projects and activities that implement a work plan that provides for a continuum of care for homeless persons under subsection (c); and ``(2) to States, units of general local government, Indian tribes, and private nonprofit organizations to demonstrate the feasibility and desirability of carrying out innovative programs to assist homeless individuals under subsection (d). ``(b) General Provisions.-- ``(1) Definitions.--For purposes of this section: ``(A) The terms `State', `metropolitan city', `urban county', `unit of general local government', `Secretary', and `Indian tribe' have the meanings given such terms in section 102(a) of the Housing and Community Development Act of 1974. ``(B) The term `private nonprofit organization' has the meaning given such term in section 422 of the Stewart B. McKinney Homeless Assistance Act. ``(C) The term `homeless individual' has the meaning given such term in section 103 of the Stewart B. McKinney Homeless Assistance Act. ``(2) Funding.--To such extent or in such amounts as have been provided in appropriation Acts for fiscal year 1994, $150,000,000 shall be available to the Secretary to carry out the demonstration under this section in such fiscal year, of which-- ``(A) $50,000,000 shall be from any amounts made available to carry out the shelter plus care program under subtitle F of this title in such fiscal year; ``(B) $40,000,000 shall be from any amounts made available to carry out the supportive housing program under subtitle C of this title in such fiscal year; ``(C) $25,000,000 shall be from any amounts made available to carry out the HOME Investment Partnerships Act in such fiscal year; ``(D) $25,000,000 shall be from any amounts made available to carry out the community development block grants program under title I of the Housing and Community Development Act of 1974 in such fiscal year; and ``(E) $10,000,000 shall be from any amounts made available under section 402 of the Cranston-Gonzalez National Affordable Housing Act to carry out the HOPE home-ownership programs in such fiscal year. Of any amounts made available to carry out the demonstration under this section, 50 percent shall be available for assistance under subsection (c) and 50 percent shall be available for assistance under subsection (d). ``(c) Homeless Crisis Funding.-- ``(1) Designation.--The Secretary shall designate such metropolitan cities, urban counties, units of general local government (including units in rural areas), and Indian tribes as areas eligible for assistance under this subsection, as the Secretary may determine. The Secretary shall establish criteria for making such designations, which shall at a minimum include-- ``(A) the extent of unmet need of homeless individuals in the jurisdiction, including those who are wholly without adequate shelter of any kind; ``(B) the gap between the jurisdiction's existing system of assisting homeless persons and the continuum of care model described in paragraph (2); ``(C) the degree of cooperation between the jurisdiction and nonprofit homeless service providers; ``(D) the degree to which private nonprofit and for-profit entities express willingness to make financial and other commitments to the jurisdiction's homeless assistance efforts; and ``(E) national geographic diversity in the designation of jurisdictions. After selecting areas for designation under this paragraph but before designating such areas, the Secretary shall consult with the Committee on Banking, Finance and Urban Affairs of the House of Representatives and the Committee on Banking, Housing, and Urban Affairs of the Senate regarding such designations. ``(2) Work plan.--To receive assistance under this subsection within a designated jurisdiction, the jurisdiction or a private nonprofit organization shall submit to the Secretary a work plan that shall, at a minimum-- ``(A) describe existing conditions for homeless persons and families throughout the jurisdiction; ``(B) set forth a realistic and feasible strategy that contains specific projects and activities resulting in a continuum of care for the jurisdiction's homeless persons and targets, goals, and strategies for implementation and completion of such projects and activities; ``(C) be prepared with appropriate cooperation from affected governments and government agencies, private nonprofit organizations, and contributing for-profit entities; ``(D) specify those projects and activities for which the jurisdiction requests funding from the Secretary under this subsection and the amounts thereby requested; and ``(E) specify courses, amounts, and timetables for the financing of other projects and activities. ``(3) Designation.--The designation referred to in paragraph (1) and assistance provided under this subsection shall be made on a noncompetitive basis. ``(d) Innovative Project Funding.-- ``(1) Authority.--The Secretary is authorized to provide assistance under this subsection to States, units of general local government (including units in rural areas), Indian tribes, and private nonprofit organizations for assistance for innovative programs to assist homeless individuals. ``(2) Applications.--Applications for assistance under this subsection shall be in such form, and shall include such information, as the Secretary shall determine. Each application shall contain, at a minimum-- ``(A) a description of the existing conditions for homeless individuals in the jurisdiction; ``(B) an explanation of how the proposed project will further the efforts of the jurisdiction to meet the housing and supportive services needs of homeless individuals through an integrated and coordinated system; ``(C) evidence that the application has been prepared in coordination with appropriate governmental entities, private nonprofit organizations, and for- profit entities; and ``(D) a description of the projects and activities for which the applicant is requesting funding under this subsection and the amounts requested. ``(3) Criteria.--The Secretary shall establish selection criteria for awarding assistance under this subsection, which shall include, at a minimum-- ``(A) the extent of the commitment of the applicant to alleviating poverty and homelessness; ``(B) the extent of the applicant's continuing capacity to effectively provide assistance to homeless individuals; ``(C) the extent to which the project or activity is innovative and may be replicable or serve as a model for implementation in other jurisdictions; and ``(D) diversity by geography and community type. ``(4) Approach.--Assistance under this subsection may be used to provide innovative approaches for, or alternative means of, meeting the immediate long-term needs of homeless individuals by assisting-- ``(A) the purchase, lease, renovation, operation, or conversion of facilities to assist the homeless, which facilities shall be safe and sanitary and, when appropriate, meet all applicable State and local housing and building codes and licensing requirements; ``(B) the provision of supportive services for the homeless; and ``(C) such other activities as the Secretary may prescribe. ``(5) Requirements.--The Secretary shall establish requirements for assistance under this subsection, which may include limitations on administrative expenses, terms of renewal funding for short-term lease projects, and requirements for repayment of assistance under this subsection when the project ceases to be used to assist the homeless in accordance with the provision of this subsection. ``(e) Reports.--The Secretary shall submit an annual report to the Congress for each fiscal year in which the Secretary provides assistance under the demonstration under this section. The reports shall describe the activities carried out with assistance under the demonstration and set forth any findings and recommendations of the Secretary as a result of the demonstration. Each such report shall be submitted not later than the expiration of the 3-month period beginning upon the conclusion of the fiscal year for which the report is made.''. (b) Clerical Amendment.--The table of contents in section 101(b) of the Stewart B. McKinney Homeless Assistance Act is amended by inserting after the item relating to section 443 the following new item: ``Sec. 444. Innovative Homeless Initiatives Demonstration Program.''. SEC. 3. MOVING TO OPPORTUNITY FOR FAIR HOUSING. Section 152(e) of the Housing and Community Development Act of 1992 (42 U.S.C. 1437f note) is amended-- (1) in the first sentence, by striking ``$52,100,000'' and inserting ``$165,000,000''; and (2) by adding at the end the following new sentence: ``No amounts appropriated for fiscal year 1994 to carry out the demonstration under this section may be obligated to any public housing agency or expended before the Secretary submits to the Congress a report describing how amounts made available for the demonstration in fiscal year 1993 were allocated and expended and containing the information required in interim reports under subsection (d)(1), to the extent such information is available to the Secretary.''. SEC. 4. ASSISTANCE FOR LOCAL COMMUNITY DEVELOPMENT ORGANIZATIONS. (a) Authority.--The Secretary of Housing and Urban Development may provide assistance under this section to the National Community Development Initiative for making grants under this section to community development support organizations for such organizations to assist local community development organizations in increasing their technical and administrative capacities and carrying out community development projects and activities and developing affordable housing, and to provide technical and predevelopment assistance relating to such community development and housing projects. (b) Assistance to Local Community Development Organizations.--A community development support organization that receives a grant under this section shall use any such amounts to carry out the following activities and provide the following assistance: (1) Capacity building.--Providing training, education, support, and advice to local community development organizations to enhance the technical and administrative capabilities of such organizations to conduct activities under paragraphs (2) and (3) and providing amounts for such organizations to obtain such capacity building assistance, which may include assistance to the staff, management, directors, and members of such organizations regarding legal, financial, construction, engineering, property management, and other matters. (2) Community development and housing activities.-- Providing amounts (through loans and grants) and other assistance for local community development organizations to carry out community development activities that benefit low- income families and activities to develop and support affordable housing, which may include providing financing for rehabilitating, constructing, acquiring, and maintaining affordable housing. (3) Project-related predevelopment assistance.--Providing technical assistance and amounts to local community development organizations for predevelopment activities relating to specific projects under paragraph (2), which may include conducting project feasibility analyses, obtaining project consultants, preparing preliminary financing applications, obtaining legal, architectural, and engineering assistance, site acquisition, and title clearance. (4) Other activities.--Other activities, as determined by the National Community Development Initiative in consultation with the Secretary. (c) Prohibition of Use of Grant Amounts for Support Organization Administrative Costs.--No amounts from a grant under this section may be used for administrative costs of a community development support organization. (d) Requirements.--The National Community Development Initiative may make grants under this section only to community development support organizations that-- (1) submit to the Secretary an application that contains-- (A) a request for a grant under this section that specifies the amount of the assistance requested; (B) a description of the method by which the community development support organization will select local community development organizations to assist; (C) specification of the intended beneficiaries of assistance provided by the community development support organization; (D) measurable goals by which to determine the effectiveness of the use of the grant amounts; and (E) such other information as the Secretary may require; (2) are selected by the Secretary under subsection (f); and (3) agree to comply with the provisions of this section and provide assistance in the manner described in the application of the organization approved by the Secretary. (e) Matching Requirement.-- (1) In general.--The Secretary may not provide any assistance to the National Community Development Initiative from amounts made available for this section unless the Secretary determines that an amount equal to 3 times the amount to be provided by the Secretary has been made available to the National Community Development Initiative from private foundations and corporations for use with grant amounts for the purposes under subsection (b). (2) Unused amounts.--Any amounts appropriated to carry out this section for a fiscal year which may not be used because matching amounts pursuant to paragraph (1) have not been made available in the year, shall be available or committed on October 1 of the next fiscal year for the purposes under paragraph (1) or (2) of section 205 of the Cranston-Gonzalez National Affordable Housing Act, in the discretion of the Secretary. (f) Selection.-- (1) In general.--The Secretary shall select community development support organizations for grants under this section from among organizations submitting applications under subsection (d)(1). (2) Criteria.--The Secretary shall make selections under paragraph (1) based on the information contained in the applications, the capacity and experience of such organizations to provide training, support, advice, and assistance to local community development organizations, and such other criteria as the Secretary shall establish. (3) Consultation.--In establishing the content of the criteria under paragraph (2), the relative weight to be given to the various criteria, and the process under this subsection for selection of the applications for grants under this section, the Secretary shall consult with the National Community Development Initiative and the members of such Initiative. (g) Reports.-- (1) GAO.--Not later than 3 years after the date of the enactment of this section, the Comptroller General of the United States shall submit a report to the Congress describing the effectiveness of the use, by community development support organizations and local community development organizations, of amounts from grants under this section. (2) Secretary.--Not later than 15 months after the date that amounts made available pursuant to subsection (i)(1) are first disbursed to the National Community Development Initiative, and annually thereafter for 3 years, the Secretary shall submit a report to the Congress describing the activities carried out by community development support organizations and local community development organizations with amounts provided under this section and matching amounts, the effectiveness of such activities, and any other findings of the Secretary as a result of assistance provided under this section. (h) Definitions.--For purposes of this section: (1) Distressed area.--The term ``distressed area'' means an area in which the percentage of the families residing in the area that are low-income families is substantially higher than such percentage for the region in which the area is located, or that possesses other characteristics indicating a need for housing or community development assistance, as determined by the community development support organizations. (2) Grant.--The term ``grant under this section'' means a grant with assistance provided under subsection (a) by the Secretary from amounts appropriated pursuant to subsection (i)(1). Such term does not include assistance provided with any amounts made available by private foundations and corporations pursuant to the requirement under subsection (e). (3) Local community development organizations.--The term ``local community development organization'' means a nonprofit organization-- (A) that has among its principal purposes the provision of affordable housing in a distressed area or conducting community development activities that primarily benefit low-income families in a distressed area; and (B) whose governing board is comprised of business, civic, and community leaders and residents of the distressed area in which the organization carries out its activities. The term includes community development corporations and community housing development organizations (as such term is defined in section 104 of the Cranston-Gonzalez National Affordable Housing Act). (4) Community development support organization.--The term ``community development support organization'' means a nonprofit organization funded by the National Community Development Initiative that-- (A) has among its principal purposes providing assistance throughout the United States to local community development organizations to facilitate such local organizations' activities to develop or maintain affordable housing or revitalize distressed communities; (B) has demonstrated experience and ability in providing a range of assistance to local community development organizations, which may include financing, technical assistance, construction activities, property management, and training; and (C) meets standards of fiscal responsibility established by the Secretary. (i) Funding.-- (1) In general.--Amounts made available for carrying out the HOME Investment Partnerships Act for fiscal year 1994 shall be made available for use under this section to such extent or in such amounts as are provided in appropriation Acts, except that the amount so made available for use under this section may not exceed $25,000,000. (2) Community housing partnership activities.--Section 205(1) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12724(1)) is amended by striking ``$14,000,000'' the second place it appears and inserting ``$25,000,000''. Passed the House of Representatives June 29, (legislative day, June 28), 1993. Attest: DONNALD K. ANDERSON, Clerk. HR 2517 RFS----2