[Senate Hearing 110-919] [From the U.S. Government Publishing Office] S. Hrg. 110-919 WORKING TOWARDS ENDING HOMELESSNESS: REAUTHORIZATION OF THE McKINNEY-VENTO HOMELESS ASSISTANCE ACT ======================================================================= HEARING before the COMMITTEE ON BANKING,HOUSING,AND URBAN AFFAIRS UNITED STATES SENATE ONE HUNDRED TENTH CONGRESS FIRST SESSION ON CONSOLIDATING HUD'S HOMELESSNESS PROGRAMS, INCREASE FUNDING FOR PREVENTION PROGRAMS, AND INCORPORATE LESSONS LEARNED ABOUT HOMELESSNESS SINCE THE PASSAGE OF THE MCKINNEY-VENTO ACT __________ THURSDAY, JUNE 21, 2007 __________ Printed for the use of the Committee on Banking, Housing, and Urban Affairs Available at: http: //www.access.gpo.gov /congress /senate / senate05sh.html ---------- U.S. GOVERNMENT PRINTING OFFICE 50-321 PDF WASHINGTON : 2009 For sale by the Superintendent of Documents, U.S. Government Printing Office Internet: bookstore.gpo.gov Phone: toll free (866) 512-1800; DC area (202) 512-1800 Fax: (202) 512-2104 Mail: Stop IDCC, Washington, DC 20402-0001 COMMITTEE ON BANKING, HOUSING, AND URBAN AFFAIRS CHRISTOPHER J. DODD, Connecticut, Chairman TIM JOHNSON, South Dakota RICHARD C. SHELBY, Alabama JACK REED, Rhode Island ROBERT F. BENNETT, Utah CHARLES E. SCHUMER, New York WAYNE ALLARD, Colorado EVAN BAYH, Indiana MICHAEL B. ENZI, Wyoming THOMAS R. CARPER, Delaware CHUCK HAGEL, Nebraska ROBERT MENENDEZ, New Jersey JIM BUNNING, Kentucky DANIEL K. AKAKA, Hawaii MIKE CRAPO, Idaho SHERROD BROWN, Ohio JOHN E. SUNUNU, New Hampshire ROBERT P. CASEY, Pennsylvania ELIZABETH DOLE, North Carolina JON TESTER, Montana MEL MARTINEZ, Florida Shawn Maher, Staff Director William D. Duhnke, Republican Staff Director and Counsel Jonathan Miller, Professional Staff Jennifer Fogel-Bublick, Counsel Kara Stein, Legislative Assistant Mark A. Calabria, Republican Senior Professional Staff Member Tewana D. Wilkerson, Republican Professional Staff Member Joseph R. Kolinski, Chief Clerk and Computer Systems Administrator George Whittle, Editor C O N T E N T S ---------- THURSDAY, JUNE 21, 2007 Page Opening statement of Senator Reed................................ 1 Opening statements, comments, or prepared statements of: Senator Shelby............................................... 2 Senator Akaka................................................ 3 Senator Martinez............................................. 4 Senator Casey................................................ 5 Senator Sununu............................................... 6 Senator Brown................................................ 8 Senator Crapo................................................ 8 Senator Allard............................................... 9 WITNESSES Roy A. Bernardi, Deputy Secretary, Department of Housing and Urban Development.............................................. 11 Prepared Statement........................................... 44 Response to written questions of: Senator Crapo............................................ 137 Adrian M. Fenty, Mayor, District of Columbia..................... 13 Prepared Statement........................................... 50 Shirley Franklin, Mayor, City of Atlanta, Georgia................ 14 Prepared Statement........................................... 53 Lloyd S. Pendleton, Director, Homeless Task Force, Department of Community and Culture, Division of Housing and Community Development, State of Utah..................................... 28 Prepared Statement........................................... 61 Response to written questions of: Senator Dodd............................................. 138 Carol Gundlach, Executive Director, Alabama Coalition Against Domestic Violence.............................................. 30 Prepared Statement........................................... 72 Moises Loza, Executive Director, Housing Assistance Council...... 32 Prepared Statement........................................... 102 Linda Glassman, Secretary, Board af Directors, National AIDS Housing Coalition.............................................. 34 Prepared Statement........................................... 113 Response to written questions of: Senator Dodd............................................. 138 Nan Roman, President, National Alliance To End Homelessness...... 37 Prepared Statement........................................... 121 Additional Material Supplied for the Record Letter from Homes In Partnership, Inc............................ 139 Letter from the Kern County Homeless Collaborative............... 140 Letter from the Oswego Housing Development Council, Inc.......... 141 Letter from Mike Lowry, former Member of Congress and former Governor, State of Washington.................................. 142 Letter from the National Alliance to End Homelessness............ 143 Letter from the Connecticut Coalition to End Homelessness........ 144 Letter from the Local Initiatives Support Corporation (LISC) and the National Equity Fund (NEF)................................. 145 Letter from Columbus House, Inc.................................. 146 Letter from the Corporation for Supportive Housing in Connecticut 148 Letter from the Technical Assistance Collaborative............... 150 Letter from the National AIDS Housing Coalition, Inc............. 151 Letter from the National Housing Conference...................... 152 Letter from Enterprise Community Partners, Inc................... 154 Letter from the Housing Assistance Council....................... 156 Letter from the Partnership for Strong Communities............... 157 Letter from multiple agencies in support of S. 1518, The Community Partnership To End Homelessness Act.................. 158 Letter from multiple rural housing organizations and advocates in support of S. 1518, The Community Partnership To End Homelessness Act............................................... 160 Letter from the National Alliance on Mental Illness (NAMI)....... 162 Letter from the Consortium for Citizens with Disabilities........ 163 Letter from the City and County of San Francisco Local Homeless Coordinating Board............................................. 165 Letter from the Keuka Housing Council, Inc....................... 167 WORKING TOWARDS ENDING HOMELESSNESS: REAUTHORIZATION OF THE McKINNEY- VENTO HOMELESS ASSISTANCE ACT ---------- THURSDAY, JUNE 21, 2007 U.S. Senate, Committee on Banking, Housing, and Urban Affairs, Washington, DC. The Committee met at 10:04 a.m., in room SD-538, Dirksen Senate Office Building, Senator Jack Reed, presiding. STATEMENT OF SENATOR JACK REED Senator Reed. Let me call the Committee hearing to order. Today we are beginning a hearing entitled ``Working Toward Ending Homelessness: Reauthorization of the McKinney-Vento Homeless Assistance Act.'' The purpose of this hearing is to determine how we can best reauthorize the housing assistance titles of this groundbreaking legislation. While Congress has continued to appropriate funding for housing assistance for those who are homeless, the McKinney- Vento Act has not been comprehensively reauthorized since 1994. We want the hearing this morning to focus on lessons learned during the past decade regarding how to best prevent and end homelessness, as well as our witnesses' perspectives on S. 1518, the Community Partnership to End Homelessness Act, a reauthorization bill that Senator Allard and I recently introduced. S. 1518 would reauthorize and amend the housing titles of the McKinney-Vento Homelessness Assistance Act of 1987. Specifically, our bill would realign the incentives behind the Department of Housing and Urban Development's Homeless Assistance Programs to better accomplish the goals of preventing and ending homelessness. We are particularly proud of the new prevention program and rural homelessness program in the bill. According to the Homelessness Research Institute at the National Alliance to End Homelessness, as many as 3.5 million Americans experience homelessness each year. On any one night, approximately 744,000 men, women, and children are without homes. Another study by the National Coalition for Homeless Veterans estimated that nearly 200,000 veterans of the United States Armed Forces are homeless on any given night and about one-third of homeless men are veterans. The statistics regarding the number of children who experience homelessness are especially troubling. Each year it is estimated that at least 1.35 million children experience homelessness at some time. Over 40 percent of homeless children are under the age of 5. Whatever their age, we know that children who are homeless are in poorer health, have developmental delays, and suffer academically. In addition, we know that many of those who are homeless have a disability. According to the Homelessness Research Institute, about 23 percent of homeless people were found to be chronically homelessness, which under the current HUD definition means that they are homeless for long periods of time or homeless repeatedly and they have a disability. For many of these individuals and families, housing alone, without some attached services, may not be enough. Finally, as rents have soared and affordable housing units have disappeared from the market during the past several years, even more working Americans have been left unable to afford housing. According to the National Low Income Housing Coalition's most recent ``Out of Reach'' report, nowhere in the country can a minimum wage earner afford a one-bedroom home; 88 percent of renters in cities live in areas where they cannot afford the fair market rent for a two-bedroom rental, even with two minimum wage jobs. Low-income renters who live paycheck to paycheck are in precarious circumstances and sometimes must make tough choices between paying rent and buying food, prescription drugs, or other necessities. If one unforeseen event occurs in their lives, they could end up homeless. So why should the Federal Government work to help prevent and end homelessness? Simply put, we cannot afford not to address this problem. Homelessness leads to untold costs, including expenses for emergency rooms, jails, shelters, foster care, detoxification, and emergency mental health treatment. It has been 20 years since the enactment of the Stewart B. McKinney Homeless Assistance Act, and we have learned a lot about the problem of homelessness since then. It is now time to take what we have learned during the past 20 years and put those best practices and proposals into action. There is a growing consensus on ways to help communities break the cycle of repeated and prolonged homelessness. Clearly, Senator Allard and I have been thinking about this a fair amount, and we look forward to hearing from our witnesses today about how we can best work together--work together--on reauthorizing the housing titles of the McKinney-Vento Homeless Assistance Act to focus on preventing and ending long-term homelessness. And before I introduce our witnesses, I would like to recognize the Ranking Member, Senator Shelby, for his comments. Senator. STATEMENT OF SENATOR RICHARD C. SHELBY Senator Shelby. Thank you, Senator Reed. Homelessness is an issue facing not only larger cities, but also small towns and rural communities across our country. The causes of homelessness are as diverse as the communities that it affects. The programs which reside in many of our Federal agencies have attempted to address the full spectrum of the problem. Some have succeeded, some have not. While this Committee's primary responsibility includes HUD's homeless assistance programs, we should keep in mind the interrelation between HUD's programs and those found at other agencies. Differing rules and program definitions often decrease the effectiveness of how Federal programs operate at the local level. This is an area on which I hope we will focus some today. I also want to thank all of today's witnesses for their willingness to appear before the Committee. In particular, I would like to thank someone from my State, Ms. Carol Gundlach, for her participation. Ms. Gundlach is the Executive Director of the Alabama Coalition Against Domestic Violence, a position in which she has served since 1990. She has also served as the State coordinator of the Alabama Coalition Against Hunger and as a member of the board of directors of the National Network to End Domestic Violence. She was instrumental in helping to bring many of Alabama's rural communities into HUD's continuum of care process. Ms. Gundlach, I am looking forward to you on the second panel testifying here today, and I welcome all the witnesses today, including the Deputy Secretary of HUD. But, Senator Reed, I think we are served well by the former Secretary of HUD, Senator Martinez, who knows a lot about this program, knows a lot about housing, having served as Secretary of HUD before he became a United States Senator. Senator Reed. Thank you, Senator Shelby. I concur. And I also want to particularly thank again Senator Allard and his staff who have worked so diligently on this issue. We have over the last several years shared responsibilities as Chairmen of the Subcommittee on Housing, and we have done it I think in a very cooperative way. Senator Shelby. Well, you and Senator Allard worked together when the Democrats were in power and when we were in power, vice versa, because you have a common goal. Senator Reed. Thank you, Mr. Chairman and now Ranking Member. Senator Akaka, if you have comments. STATEMENT OF SENATOR DANIEL K. AKAKA Senator Akaka. Yes, thank you. Thank you very much, Mr. Chairman and Ranking Member Shelby. I want to add my welcome to our witnesses today, and thank you, Mr. Chairman, for conducting this hearing on such an important issue. My home State of Hawaii is struggling to meet the housing needs of our residents. In the National Low Income Housing Coalition's ``Out of Reach 2006'' report, Hawaii ranked 51st in terms of housing affordability, and, Mayor Fenty, Hawaii was only above the District of Columbia in that report. Hawaii has the highest median monthly rental cost in the country. Having a job is not enough to ensure access to adequate housing. We have a tremendous shortage of affordable housing. It will take long-term, coordinated Federal, State, and county efforts to help increase access to affordable housing. In addition to limited access to affordable housing, there are numerous other causes of homelessness which can include suffering from a debilitating illness, substance abuse, or domestic violence. Mr. Chairman, any hearing on homelessness must include attention to the fact that there are far too many homeless veterans. Veterans comprise approximately one-third of all the homeless population. As Chairman of the Committee on Veterans' Affairs, I have introduced legislation, S. 1384, which would enhance and improve VA services for homeless veterans. This bill would modify the funding mechanisms for community-based services to homeless veterans, expand capacity of services for women veterans, and improve outreach to servicemembers and incarcerated veterans who are at risk of becoming homeless. I recognize that permanent supportive housing is one of the most effective ways to end homelessness, and I am working with my colleagues on both this Committee and on the Veterans' Affairs Committee to provide such housing. Today we will focus on what must be done to meet the immediate housing and social service needs of the homeless and preserve existing affordable housing units as we work toward reauthorizing the McKinney-Vento Homeless Assistance Act. This legislation will help provide much needed Federal resources and flexibility to local communities to create adequate housing for their residents. Mr. Chairman, I appreciate all of the work that you and your staff, and particularly Kara Stein, did in putting together this reauthorization legislation, and I want you to know that I am proud to cosponsor the legislation. I look forward to helping bring about enactment of this and other legislation needed to improve the lives of people without adequate housing. I want to again thank our witnesses for appearing today, and I look forward to their testimony. Thank you very much, Mr. Chairman. Senator Reed. Thank you, Senator Akaka, and I will recognize my colleagues in order of arrival. Senator Martinez. STATEMENT OF SENATOR MEL MARTINEZ Senator Martinez. Thank you very much, Mr. Chairman. I appreciate your comments earlier as well, and let me also welcome the witnesses here today, very especially my good friend Secretary Bernardi, who served with me at HUD and continues to so ably serve there. And I particularly also want to recognize my good friend Nan Roman who worked so tirelessly on this issue with me while I was at HUD, and I know continues to work there as well on all of these very important issues relating to homelessness. In the year 2002, President Bush made ending chronic homelessness within 10 years one of his top national objectives, and then I as HUD Secretary began to implement some new directions to try to fulfill that commitment. We needed to make Federal programs that help the homeless more responsive to the people they were designed to serve, and I committed the resources of the Department to this goal and took steps to reengage the Interagency Council on Homelessness. I am very proud of what the Interagency Council has accomplished in just 5 years. Unprecedented Federal, State, and local collaborations have been created through the council's leadership, and this would not have occurred but for the dynamic leadership of Philip Mangano, who I was fortunate to entice to come and head this council, and his hard work and dedication have paid off. Under his direction, the council has forged a national partnership that includes 20 Federal agencies, 49 Governors, over 300 mayors and county executives. Countless private sector participants have also worked, and all are working together to accomplish the goals of preventing and ending homelessness. At the root of the problem is the issue of chronic homelessness, and that is what this program attempts to try to put an end to. I am pleased to convey that mayors and county executives across the country are able to report for the first time in 20 years that the number of individuals experiencing long-term homelessness on the streets or in shelters has, in fact, decreased. Miami, Florida, reports a decrease of 50 percent; Portland, Oregon, 70 percent; San Francisco, California, 38 percent; Philadelphia, 50 percent; Dallas, 43 percent. And the list of cities goes on and on. I would like to note that these accomplishments would not be possible without the strong commitment of Federal resources. We have experienced 7 years of record targeted Federal assistance in homelessness spending with a record of the 8th year request now before the Congress. Federal funding provides the vital leverage needed for State, local, and private sector investment. Many of these Federal dollars flow through the program we have come here to discuss today, the McKinney-Vento Homeless Assistance Act. The legislation was originally passed as a response to an emerging crisis in homelessness. Since then, many homeless services and governmental agencies have used McKinney-Vento as an important tool to provide housing and services to homeless people throughout our country. By all accounts, McKinney-Vento is working very well, but as with most things, there is always room for improvement. I would like to thank Senators Reed and Allard for introducing legislation that would reauthorize the housing titles of McKinney-Vento and improve the existing programs in order to make assistance more flexible, performance-based, and accountable. This legislation recognizes the importance of consolidating programs that represent a national consensus goal among advocates, providers, and government sectors. It also presents an opportunity to streamline the Federal role and administration while bringing a new set of expectations to the programs. Finally, the proposal emphasizes performance, innovation, prevention, and permanent housing solutions, as well as collaborative local planning in the public and private sector. I would like to welcome our witnesses here today. Thank you for taking time out of your schedules to join us and share your perspectives on this very important issue, and I look forward to your testimony. Thank you very much. Senator Reed. Thank you very much, Senator Martinez. Senator Casey. STATEMENT OF SENATOR ROBERT P. CASEY Senator Casey. Mr. Chairman, thank you very much, and thanks for bringing us together and for your work on this, along with Senator Allard. I do want to say first thank you to our witnesses today, Mayor Franklin and Mayor Fenty and Secretary Bernardi. We appreciate your presence here today, and we are honored by your appearance and the testimony that you will give. I just have a few comments about some of the numbers that we have heard already this morning, the numbers of Americans who are homeless who happen to be children and veterans, a tremendously disproportionate number for this country. And I think that is one of the things that brings us together today to try to work in a bipartisan way, not just to tinker with a piece of legislation or to reauthorize but to really make a commitment to ending homelessness. And we are so grateful for the work that has already gone on prior to this reauthorization. I had a chance just in the last couple of days--I guess it was 2 or 3 days ago now--to sit in my office with two young people, a young man and a young woman who were homeless, in Harrisburg, Pennsylvania, our capital. And they had fought through that and are a tremendous example of how people can overcome just awesome obstacles in their way, a tremendous testament to the human spirit. And the focus of these two individuals is higher education. They wanted to climb out of their own situation of homelessness to attend a community college and to get higher education. So I think it is that kind of commitment and that kind of dedication to moving beyond their own problems that we see in a lot of our families who happen to be homeless. In many ways, this issue and this legislation is a test of our common humanity. How we deal with this issue is a test for all of us in both parties, and I think there is a moral test that Hubert Humphrey set forth a long time ago about how we treat people in the dawn of life, the twilight of life, and in the shadows of life. And I think if he were here, he would include the homeless in the shadows of life. A couple of basic questions. Senator Martinez talked about chronic homelessness. We have got to deal with that definition and how we define that by statute. Post-traumatic stress disorder, whether or not that should be a qualifying disability. I think it should. That is something to talk about. And also research, to continue the research into homelessness so we can better inform this Committee and the Congress generally on this legislation. So, Mr. Chairman, I am grateful for the fact that we have this opportunity today, and I think it is a real test of all of us how we deal with this issue. Thank you very much. Senator Reed. Thank you, Senator Casey. Senator Sununu. STATEMENT OF SENATOR JOHN SUNUNU Senator Sununu. Is that me, Senator Reed? [Laughter.] Senator Reed. Say it fast. Senator Sununu. Thank you very much, and I very much appreciate the work that has been done on this legislation. I know a lot of it went on in the last session of Congress, and hopefully this is a bill that we can act on in a timely way in this session of Congress. Whenever I speak to people in New Hampshire about the issue of homelessness and the Federal support that, as Senator Martinez pointed out, is very important, they highlight three critical items, and that is, of course, the level of funds that Senator Martinez spoke about--and the level of funding has been good. We need to make sure that we have good authorization levels and that funding continues to be available. Second is timely access to the funds, and here we often deal with some of the inevitable bureaucracy that comes with any program of Federal oversight and administration. But I think the legislation recognizes that and tries to make sure that access to and availability of funds is handled in an effective and timely way. And then last, and maybe most important, flexibility, and that is because there are dramatic differences from community to community, State to State, city to city, regarding the fundamental needs in the homeless population, differences in numbers, whether there is chronic homelessness versus more transient family oriented homelessness or homelessness that might be created by a domestic situation. There may be greater or lesser prevalence of substance abuse, and in a similar fashion, there might be better or weaker substance abuse programs, which are critical to dealing with some of these issues. And then there are many other areas where there will be differences. All of that speaks to the need for flexibility. Senator Casey mentioned the issue of defining chronic homelessness. This is extremely important because if we define it too broadly, then we will weaken our ability to handle those individuals and families that are most in need of the assistance that comes through these programs. So I think all of these issues need to remain in front of us as the legislation moves forward so that we can try to improve any weaknesses that come to light. Three particular areas where I am most concerned is one with the targeting and consolidation that this bill recognizes is important. It takes four programs, consolidates them down-- it consolidates three of the four programs into one so we see a reduction in the numbers, but then it creates two more. And I think we need to look long and hard before we start creating additional programs provided that the funds will get and can get to the local level and be used flexibly to treat these very needy individuals. We should always be concerned when we are creating more programs to target the same population. Second is the criteria we use to judge applicants, the grant applicants. I know that the administration recommended that we establish six criteria for judging grants. I do not know if they are the right criteria or not, but I believe in the underlying bill we have 24 criteria. I am very concerned that as you expand that number of criteria, you slow down the process and you start to affect the access issue, the timely access to the funds. And I would certainly be interested to hear the mayors' perspective on the complexity of the criteria for the grants and the issue of consolidation and whether or not for someone that is in a leadership position at the local level those issues of flexibility and access are truly a concern. And then the third area has to do with shifting budgetary authority for the contract renewals to the Section 8 program, and that is something I would be interested to hear the Secretary's thoughts on, whether or not Section 8 is really the right place to handle those contract renewals. The Section 8 program works effectively in many parts of the country, but it is a fundamentally different program. It has its own administrative and oversight challenges, and I am concerned that if we move that contracting into the Section 8, we might lose some of the focus and the effectiveness of the McKinney programs that I think everyone on the Committee recognizes as being very important to the homeless population. Thank you very much, Mr. Chairman, and I very much look forward to hearing our panel address those specific questions. Senator Reed. Thank you very much, Senator. Senator Brown. STATEMENT OF SENATOR SHERROD BROWN Senator Brown. Thank you, Mr. Chairman. Thank you for your leadership on the reauthorization bill, and, Mayor Franklin and Mayor Fenty, thank you very much for your public service. About 5 years ago, I read a book by Barbara Ehrenreich called ``Nickel and Dimed,'' and in her book she pointed out that in the 2000 Presidential election, not once did the major party candidates mention the word ``housing'' that she could find. And I think that 2004 was not much different in the Presidential race. The candidates simply did not talk much about housing and the fundamental problem in this country of enough high-quality, good, available, accessible affordable housing for people. I know that is only part of the problem we address today. But I am hopeful that your presence today, the Deputy Secretary and two of the most prominent, best mayors in the country, can help to put this on the national agenda for this Senate and for the House and for the Presidential race. We are facing in part the difficult obstacle of we are still spending more than $2 billion a week on a war we should not be in, and there are some that want to extend tax cuts that have gone overwhelmingly to the wealthiest 1 percent of people in this country, making funding of all the kinds of things that you have advocated in Washington and in Atlanta and I advocate in Cleveland and in rural areas in southern Ohio that we need to do on health care and housing and education. But I am hopeful that your efforts and your continuing to speak out on issues of homelessness, on issues of housing, on issues of economic justice generally, will help to focus this country's attention as we move into a Presidential year on the issue of homelessness and housing for both parties and that it is actually debated instead of ignored. Thank you. Senator Reed. Thank you very much, Senator. Senator Crapo. STATEMENT OF SENATOR MIKE CRAPO Senator Crapo. Thank you very much, Mr. Chairman, and I want to join those who have commended you and Senator Allard and Senator Shelby for your previous work on the reauthorization of this legislation and on this critical issue. Most of the points of my colleagues are well taken, and I will not repeat them all. There is one issue that has not been addressed yet that I just wanted to highlight, and then I will focus on it a little more in the questions. But I come from a State that has a lot of rural areas--Idaho--and one of the concerns that we always have in rural areas with regard to any Federal program that has some kind of a formula for the distribution of funds is whether the formula is set up in a way that does not create a disproportionate allocation of funds to the urban areas of the country. The rural areas do not have necessarily the organizational capacity that a lot of the organizations that deal with homelessness in the urban areas do. And so they to a certain extent do not have the competitive edge in competing for these kinds of grant monies and dollars that urban areas might have. And so I am going to be interested to be sure that the performance-based application procedures in the legislation are going to be able to be implemented in a way that do not disproportionately move funding away from rural areas. I do not think that I am saying that the rural areas should get more than their share, but they certainly should get their share. And so that is an issue that I think we need to pay attention to. Thank you, Mr. Chairman. Senator Reed. Thank you, Senator Crapo. Let me recognize Senator Allard now and thank him personally for his help on this effort, but also his great leadership over many years with respect to the Housing Subcommittee. It has been a pleasure working with you, Wayne, and thank you very much. STATEMENT OF SENATOR WAYNE ALLARD Senator Allard. Well, thank you, Acting Chairman Reed, and I also would like to thank Chairman Dodd for allowing us to hold this meeting, and certainly my Ranking Member, Senator Shelby, has been most helpful on this particular issue. It has been a team effort, and so I am particularly pleased that I could work with my friend from Rhode Island. And you and I have been working on this issue for some time, and I am pleased that we are moving forward. In 1987, Congress passed the Stewart B. McKinney Homeless Assistance Act, now known as the McKinney-Vento Homeless Assistance Act. The act was the first comprehensive law addressing the diverse needs of the homeless, including programs at the Department of Health and Human Services, the Department of Education, the Department of Labor, the Department of Agriculture, and the Department of Housing and Urban Development. Until enactment of this law, the problems confronted by the homeless were mainly addressed at the State and local level. The McKinney Act represented a consensus that had developed that a major Federal commitment was required in order to end homelessness. Currently, the Federal Government devotes significant resources to the homeless. For fiscal year 2007, HUD's homeless grant programs are funded at $1.44 billion. Yet, despite the enormous Federal resources directed toward homeless, the problem persists. We need to bring more accountability to homeless assistance, increasing funding for successful programs and initiatives, and replacing those that are ineffective. There seems to be consensus that the McKinney-Vento Act has been an important tool to help some of society's most vulnerable members and that the first step should be reauthorization of the act. There also seems to be a consensus that the second step should be consolidation of the existing programs. I originally introduced consolidation legislation in 2000, and then Senator Reed offered a proposal in 2002. HUD has also advocated for a consolidated program for several years now. While we differed in some of the details, including the funding distribution mechanism for a new program, these proposals offered consensus on the important starting point of consolidation. After extensive discussion, Senator Reed and I introduced the Community Partnership to End Homelessness Act. The bill will consolidate the existing programs to eliminate administrative burdens, multiple applications, and conflicting requirements. The streamlined approach will combine the efficiencies of a block grant with the accountability of a competitive system. Localities will submit applications outlining the priority projects for their area based on outcomes and results. I am especially supportive of approaches such as this one that focus on results rather than processes. The Community Partnership to End Homelessness Act also attempts to acknowledge that homelessness is not confined to urban areas, although the solution in rural areas will be different for rural areas. This is important in States like Colorado which have both urban and rural homelessness challenges. I would like to take a moment to acknowledge the work of Denver Mayor John Hickenlooper. Since he took office, Mayor Hickenlooper has been on the forefront of the effort to end homelessness in Denver. He has shown tremendous leadership and was instrumental in creating Denver's 10-year plan to end homelessness. So far the plan has shown very encouraging results. Mayor Hickenlooper's feedback was helpful in formulating a bill that would support and encourage such plans. Unfortunately, Mayor Hickenlooper was unable to be here today to express his support for the Community Partnership to End Homelessness Act. Senator Allard. He has been a good friend on this issue, and I look forward to working with him to end homelessness in Colorado and across the Nation. I appreciate this opportunity to hear from a variety of witnesses regarding consolidation of HUD's homelessness programs, including the Community Partnership to End Homelessness Act. I believe it is a thoughtful bill and was introduced after extensive consultation with many different groups. However, Senator Reed and I have both been clear that we are open to feedback and willing to continue to work with people in order to move the bill forward. I would like to thank all our witnesses for being here today. Your testimony will be helpful as we move to enact legislation to better prevent and end homelessness. Thank you, Mr. Chairman. Senator Reed. Thank you very much, Senator Allard. Before I introduce the witnesses, I would like to personally thank the staffs for their great work on this legislation, but particularly Kara Stein in my office and Tewana Wilkerson in Senator Allard's office. They have done a remarkable job, and if we pay attention to them, we will be all set. Secretary Bernardi, welcome. Roy Bernardi as Deputy Secretary of the Department of Housing and Urban Development is charged with managing HUD's day-to-day operations, a $32 billion annual budget and the agency's 9,100 employees. As HUD's chief operating officer, Mr. Bernardi is responsible for improving ethics and accountability within HUD's programs and among its grants recipients. Mr. Bernardi formerly served as HUD's Assistant Secretary of Community Planning and Development, helping to develop viable communities by promoting integrated solutions to the challenges facing the Nation's cities. Prior to joining the Bush administration, Mr. Bernardi was the 51st mayor of the city of Syracuse, New York, and is still affectionately referred to as ``Mayor Bernardi'' in the Department. Welcome, Mayor Bernardi. Thank you. We have two other mayors here. We are delighted to welcome Mayor Adrian Fenty, the mayor of Washington, D.C. Mayor Fenty was elected as Washington's youngest ever mayor in November 2006, carrying every precinct in the city in both the primary and the general elections. He assumed office with a resounding mandate. Mayor Fenty began his electoral career on the Washington, D.C., Council in 2001, winning a hard-fought battle. Councilman Fenty brought a new standard of constituent service to his ward, attracting new jobs and homes, fighting against nuisance properties that generated crime and decay, heightening police responsiveness, expanding community policing, and working to expand affordable housing. Mayor Fenty, welcome and thank you for your service. We are also joined by Mayor Shirley Franklin, the mayor of Atlanta, Georgia. Mayor Franklin was elected in 2001 and is the first female mayor of Atlanta and the first African American woman to serve as mayor of a major Southern city. Since her inauguration in 2002, Mayor Franklin has worked to build a best-in-class managed city by strengthening existing frameworks, implementing progressive changes, and making the tough decisions necessary to improve Atlanta. Her accomplishments include establishing a commission of city leaders to study the problem of homelessness in the city and creating the blueprint to end homelessness in Atlanta in 10 years. The flagship project, the 24/7 Gateway Center, designed to serve 500 people a day with needed personnel and health services, opened in July 2005. Again, Mayor, thank you for joining us today. All of your statements will be made part of the record. I would ask you to take 5 minutes to make your presentations, and you can summarize or extemporize as you wish. Secretary Bernardi. STATEMENT OF ROY A. BERNARDI, DEPUTY SECRETARY, DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT Mr. Bernardi. Thank you, Chairman Reed, Ranking Member Shelby, and Members of the Committee, a special hello to Secretary Martinez, my old boss. It is nice to be here with fellow mayors. It says ``Secretary Bernardi'' here, but as you indicated, Mr. Chairman, people still refer to me as ``Mayor.'' We are here today to do the reauthorization of the McKinney-Vento Act and the consolidation HUD's homeless programs--those are three programs: the Supportive Housing Program, the Continuum of Care, and the Single Room Occupancy-- into one consolidated program. Mr. Chairman, I want to give a special thanks to yourself and to Senator Allard and your staffs for the hard work that you have done over the years working with the staff at HUD in the Special Needs Assistance Program to bring this forth, acknowledging that your bill, S. 1518, represents a major step forward in the effort to consolidate the programs that I mentioned and to codify them in statute. It will provide greater flexibility, which in turn will enable improved performance and effectiveness of HUD's Homeless Assistance Grant Program, a program that I believe works very, very effectively. I am pleased to report the administration's homeless bill was transmitted to Congress yesterday, and the proposal, as I mentioned, was to consolidate the three programs into one. We believe very strongly that it will provide more flexibilities to the localities. Some of the Senators here mentioned rural homelessness. We believe it will provide more flexibility. It will transfer, if you will, the grantmaking responsibility to the local decisionmaking bodies, and I would think that the mayors to my left would be in approval of that. It also funds prevention of homelessness for the first time. As you know, those three programs plus the program that is a program that is done by formula, Special Needs Assistance Program, Emergency Shelter Grant, that is the only program that has prevention as part of it now. So putting prevention up to 32 percent of the resources, we are together with your bill and our bill on that, I think that would be terrific. Another big point Senator Sununu mentioned was the requirement, the time that it takes under the present system evaluating 6,000 applications with 450 continuums. Each one of those applications has to be evaluated, passed on, and then put into place, and it takes a year. If we consolidate these programs, we could move it all down to about 3 months. The bills are very complementary, and while there are some differences, the common ground, I think, is very, very strong. When it comes to matching requirements, we need to do a single match, and both bills indicate that. Right now the Supportive Housing Program has three different matches for three different areas. Our bills will say 25 percent will be the match for all of the programs. While they are similar, we do have some differences. It was mentioned the selection criteria. We have six selection criteria in place. We feel that that is sufficient. The Senate bill calls for significantly more criteria. Ending chronic homelessness, that has been a goal of this administration and of this Congress. The bill keeps that in place and the definition in place. It increases the efficiency in the award of competitive funds by consolidating existing programs into a single program application, where the Senate bill adds two additional programs--one for prevention and one for rural housing. We feel very strongly--and in the question-and-answer period I can tell you why we feel so strongly--that perhaps we do not need to do that. But I also want to say that obviously whatever you all decide, we can implement it. We want to maintain the source of funding for permanent housing renewals as the homeless assistance grants, whereas the bill, Senate bill 1518, provides for renewals in the Section 8 project-based rental assistance account. In closing, Senator, I just want to indicate that I would be happy to answer any questions, and it is a pleasure to be here. Senator Reed. Thank you very much, Mr. Secretary. Mayor Fenty, please. STATEMENT OF ADRIAN M. FENTY, MAYOR, DISTRICT OF COLUMBIA Mayor Fenty. Thank you, Chairman Reed, Ranking Member Shelby, other Committee Members. Thank you for having me. For the record, my name is Adrian M. Fenty, the fifth elected Mayor of the District of Columbia, and I am pleased to testify in support of the Community Partnership to End Homelessness Act of 2007, a huge priority of our administration in Washington, D.C. I will talk briefly about the District Government's efforts to end homelessness in the Nation's capital. Homelessness is a significant challenge in Washington, D.C., as it is in every other major city in this country. The homeless population has decreased in Washington, D.C., but the high cost of housing and the high rate of poverty in many of our neighborhoods are still major concerns. According to 2007 data, on any given night we have more than 5,700 homeless residents, including 1,760 who are chronically homeless. This represents a 6.5-percent decrease from 2006, and of these 5,700 residents, many are in emergency shelters, transitional housing, and some still on the street, as every Senator here knows firsthand. We also have more than 18,000 people who identify as homeless on our Housing Choice Voucher Program waiting list, a waiting list that now numbers over 50,000. The District continues to increase its stock of affordable housing, including permanent supportive housing, where 38 percent of our homeless population resides. This is an increase of 11 percent over last year, which means that 3,582 formerly homeless people are now living in permanent housing. We are thankful to the Department of Housing and Urban Development for its support of the District's continuum of care. We are just submitting our new application requesting more than $17 million in funding for many important renewal projects and five new permanent housing projects. This application reflects the city's commitment to the objectives laid out in our own Homeless No More plan, implemented in 2004 with a goal of ending homelessness in 10 years. We are also committed to a Housing First strategy that focuses on, first, getting a roof over one's head and then providing the needed services to keep people in permanent housing. And we have created a new locally funded rent subsidy program to provide permanent housing to hundreds of homeless residents in the Nation's capital. Our efforts in the District are spearheaded by our local Interagency Council on Homelessness for the purpose of facilitating interagency, Cabinet-level leadership. The District Government supports the Community Partnership to End Homelessness Act of 2007 because it is consistent with our own comprehensive housing strategy. Several significant changes we think are noteworthy. First, consolidating and simplifying current funding programs-- Supportive Housing, Shelter Plus Care, and Moderate Rehabilitation/SRO--into a single community homeless assistance program. This allows flexibility in funding preventive services and programs for the chronically homeless, including families and people with disabilities. The bill also increases accountability and rewards high performance--approaches our administration have begun to implement throughout the city. The act has a significant focus on prevention, including separate funding for doubling up of households, one of our highest indicators of being at risk of becoming homeless. The prevention focus is important and builds off our successful Emergency Rental Assistance Program, begun in December of last year, which helps families that may become homeless because of a significant event in their life--loss of a job or emergency medical expenses. This program helps these families stay in their current living situations instead of becoming homeless. Since January, we have assisted almost 1,500 households with their rental payments, providing an average of $1,713 per household to keep them in their current living situation and not become homeless. Mr. Chairman, I believe having a single homeless person is too many in the Nation's capital--the capital of the world's most prosperous democracy. Having almost 6,000 homeless people is tragic. But I am fully confident that we can end this tragedy with the continued support of the Federal Government. Thus, I urge you to pass Senate bill 1518 without delay. This concludes my prepared remarks, and I am open for questions. Senator Reed. Thank you very much, Mayor. Mayor Franklin. STATEMENT OF SHIRLEY FRANKLIN, MAYOR, CITY OF ATLANTA, GEORGIA Ms. Franklin. Thank you very much, Mr. Chairman, Ranking Member Shelby, and Members of the Committee. It is my pleasure to join my colleagues this morning with testimony in support of the reauthorization of the McKinney-Vento Act as it is critical to our continuing efforts in Atlanta to end chronic homelessness. The partnership between the Federal Government and local communities has provided the primary source of funds, over $85 million since 1995, for our regional efforts toward identifying and filling the gaps in services for the homeless. This funding has helped Atlanta and our two neighboring counties--Fulton and De Kalb--develop and sustain permanent supportive housing units, transitional housing units, and the wrap-around services that are crucial to serving the population. HUD's emergency shelter grants, over $5 million since 1995, also help us develop and sustain emergency shelters, although we hope that someday this particular type of housing will no longer be needed. In Atlanta, we approach the challenge of ending homelessness from both a humane mandate as well as a financially sound policy. We know that the chronically homeless who migrate through our public systems--from the streets to the public hospitals, nonprofit agencies, to the jails and back to the streets--are a very expensive way to provide services. According to various studies from places as diverse as New York City, Portland, Oregon, New Hampshire, going back as far as 1987, each of these individuals can cost communities from $40,000 to $50,000 per year. We are in the midst of documenting the actual cost in Atlanta, and we anticipate the number is going to be extremely high. We also know we can more effectively serve those individuals by getting them into housing with appropriate services for an annual cost of between $15,000 and $20,000 a year and can move many of them toward self-sufficiency, which they desire. In Atlanta, we have taken this message to our residents and to the business community. We have challenged the local community to step up with local resources to do our part to match the Federal HUD dollars. Two years ago, the city of Atlanta issued $22 million in Homeless Opportunity Bond funds to build and develop supportive housing. We are developing over 500 new units. The matching Federal dollars are critical to matching each of these project budgets. And through our Regional Commission on Homelessness, comprised of leaders from Atlanta and seven surrounding counties, we have developed our 10-year Plan to End Chronic Homelessness, and we have appealed to the business community to join our effort. The business and philanthropic community has responded with over $30 million in additional funds for housing and services to be developed throughout our region. We could not have been successful in our appeal if we did not use the Federal funds as leverage. This reauthorization would allow us even to expand those initiatives. Several of the components have been discussed by my colleagues, and I will just add one or two points. It creates separate funding for projects that focus on economic reasons for homelessness and prevention. It allows more quick authorization of the projects, allowing us to spend more time on those who are chronically homeless. The funding for ongoing renewal projects will be separated so that we can add funding for much needed new projects without jeopardizing the well-run and very essential existing projects. It decreases the time period for the review process and technical submissions, moving it to within a year instead of 2 to 3 years. My written testimony will identify other advantages we see in this. Finally, I would like to acknowledge the tremendous effort of the Interagency Council on Homelessness with whom I have worked over the last 3\1/2\ years. The Interagency Council has provided tremendous leadership and guidance to cities like Atlanta, to cities like Denver and others, in developing our own plans to end homelessness. I am more than happy to answer any questions that will come up. I know that this is a very serious matter for the city of Atlanta, and I would just note that in the case of the city of Atlanta, the responsibilities for human services fall largely to our county government. So we have made special efforts to collaborate with our county governments so that we both in the cities, in the jurisdictions around Atlanta, and the counties can have a comprehensive way of approaching this problem. We thank you for the opportunity to testify today, and I have provided written testimony as well. Senator Reed. Thank you very much, Mayor. Thank you all for your excellent testimony and for your great leadership in the communities and at the national level, Secretary Bernardi. Mr. Secretary, let me ask you a question. Do you think the HUD definition of homelessness should be expanded? Mr. Bernardi. Homelessness, the definition that we operate under, is any individual who is living on the street or living in a facility, and I feel that covers it adequately. Senator Reed. In your testimony, Mr. Secretary, you state that the HUD bill and legislation sponsored by myself and Senator Allard would decentralize the Federal role in the selection of specific projects for each continuum of care. Can you talk about the practical impact at the local level for this decentralization? Mr. Bernardi. As I mentioned in my opening statement, 6,000 applications, there is approximately 450 continuums in the country. This consolidation of the three programs into one would basically--we would be down to about 450 applications, and it would be up to the local continuums and their boards to make a determination to prioritize their needs. And I can think of no better way to do that than by passing this legislation. It would give them the opportunity to make the prioritization. I do not have the concern that perhaps some do that the local continuums would perhaps play favorites with it. You know, the homeless population, we just completed a report, the Annual Homelessness Assessment Report, and that report was issued in February. It will be issued every year now. It was a long time in coming. But the numbers show that 75 percent of the people that are homeless are in urban areas and cities; 25 percent are in suburbia and in the rural areas. Right now under the present continuum, 10 percent of our projects fund rural programs. So I believe the continuums look at everything very critically and address the needs. So I feel very strongly--and I know you all agree--to push this into one consolidated program. That one consolidated program, as I mentioned in my opening statement, it would take us a few months to get through it, as opposed to now the funding--notice of funding availability goes out in February, all of the applicants, the continuums, have until the middle of June to return it to us, and then staff has to go through those 6,000 applications, and if we are fortunate, by December or January of the next calendar year, the decisions are made. I know Secretary Martinez always had asked when we had to go through that process, you know, we want the continuums and the communities to get the money in the year that we are working in. Senator Reed. Well, thank you, Mr. Secretary. I have a question for both Mayor Fenty and Mayor Franklin. That is, you are where all this happens, at the local level, and if you could just elaborate on your testimony by indicating those aspects of current Federal policy that help you and those that are unhelpful. We will start with Mayor Fenty, then Mayor Franklin. Mayor Fenty. Well, if I had to choose one, I think our directors believe that being able to apply it to one single program would not only make things happen quicker, but simplify what we need to have done. Thus, we applaud that effort of the bill. We need to have certainty. A lot of this money is going into projects that we are trying to leverage money from the private sector and other government programs. Certainly, the funding and the timing of it, it is essential for us to be able to build more housing for our homeless neighbors. Senator Reed. Thank you. Mayor Franklin. Ms. Franklin. I would agree with that, and I would add the point that the flexibility to identify, the flexibility to use the funds based on community need through a series of assessments that local communities use. In the case of Atlanta and Fulton and De Kalb counties, we are actually funding programs to match. So we have to be concerned about the use of those funds in a way at the local level that are not even engaged in the Federal funding process. So we feel confident that we can make the judgments, as been described by the Secretary, in identifying community need based on research, objective research, which is already gathered on an annual basis. Atlanta is not in the position that I have heard several of the other presentations referred to where we have seen a reduction. We actually have a slight increase in the number of people with our most recent survey in 2007. We can document who we are serving, and we see people moving to self-sufficiency. But because of the draw of population that we are experiencing in Atlanta, we have about the same number of people today that we had 6 years ago--I mean a year ago and even 6 years ago. So we know that we are going to have to be invested in this area for a long time, and the quicker that we can get the funds, the quicker we can move people, take care of people who are about to fall through the cracks and become homeless or address the issues of chronic homelessness and the lag time between, as have been described by the Secretary and the Mayor, really do put us at a disadvantage. Our ability to leverage funds is knowing how much money we are going to have and then making the direct appeal either to the governmental entities--in my case, the city of Atlanta and the council--or to my neighboring entities. And if I am making the pitch not knowing when the funds are coming or how much, it is harder to get into the local budgets. Senator Reed. Thank you. Thank you all, again, not only for your testimony and responses to the questions, but for your great leadership. Senator Shelby. Senator Shelby. Mayor Fenty, this is not totally aimed at you because we know you have not been in office that long, but I admire what you are starting out doing. Also, other than living in Alabama, I live in the District, too, and I see some changes, and I wish you well as you tackle those and recognize those, which you do. But the District of Columbia has received on a per capita basis more Federal homeless assistance than any other jurisdiction in the country, yet the District of Columbia in the past has only made minimal progress in reducing homelessness in recent years. I admire you for tackling this and recognizing the problem here. You talked about a number of initiatives in your written statement you are undertaking to improve the District's record on homelessness, and I commend you for this. Could you take just a few minutes, if you would, and tell us how these new steps are different from the past ones that have been unsuccessful? In other words, what lessons have you learned in the District from past mistakes? And how are you putting those lessons--because you are doing it in other areas in education, and it needs to be done, and you have to do it while you are fresh on the job, don't you? Mayor Fenty. It is an excellent point, Ranking Member. The District's strategy, I would say even 5 years ago, was really just to shelter, just put the homeless residents in shelter, and it was not very good shelter. With the leadership at the Federal level and the national level, I think we have turned that to focus on housing, and now even more up-to-date a focus on prevention. And so what we tried to highlight in the testimony was that through local dollars we have put millions in for rental assistance because in the District the price of renting a place is so high that you can indeed have a job and yet can be on the brink of homelessness because you cannot pay your rent or other utilities. And so we have tried at the local level to put dollars into that, and our rental assistance program is very successful. We have actually also put local dollars into the housing voucher program just because the number of people on the list is growing and we want to at some point reduce that list. But I think some of the things that are in this legislation go right to the guts of what we are trying to do here in the District of Columbia, and that is, No. 1, to really focus on preventing homelessness from happening. And so the money for the doubling up of households we feel is critical, as we do focusing on residents who may be disabled or have some other ailment that may lead them to being homeless. So I would say, Senator, to sum up, we are putting a lot more responsibility on our local government to do prevention, and we are not wasting dollars in shelter. We are building housing, and we would use Federal dollars along those lines as well. Senator Shelby. Mr. Secretary. Mr. Bernardi. I would just like to add that the first continuum of care demonstration grant was right here in the District of Columbia in 1994, and, Ranking Member Shelby, last year it was about $16 million to the continuum in the District of Columbia. And they were funded at about 96 percent of their ask, but they were looking for new programs, and that is one of the difficulties that we have. About 85 percent of the funding of that $1.2 billion that goes to the continuums, 85 percent of that is for renewals. So new projects, very difficult to fund. I also want to say that the District of Columbia has tremendous private participation by local government and other entities that support their homeless program. Senator Shelby. Thank you. Mr. Secretary, Hurricane Katrina, as you well know, because you work in this, displaced thousands of families, many of whom remain homeless today. What steps has HUD taken within its homeless assistance program to address the increase in homelessness resulting from Hurricane Katrina? Mr. Bernardi. Providing vouchers to the homeless population that---- Senator Shelby. That lets them shop? Mr. Bernardi. Pardon me? Senator Shelby. Lets them shop. Mr. Bernardi. Yes. Vouchers for the homeless population. At the same time, other continuums of care around the country came to the aid of the Gulf Coast during its time of need. And also we are providing technical assistance through the Department to all of the continuums in the affected area. Senator Shelby. It is a challenge, though, isn't it? Mr. Bernardi. Oh, it is a tremendous challenge. There are so many challenges, but that perhaps is the most daunting of all, when people do not have the wherewithal, the ability, whether it is substance abuse, the reason that they are out there in the street. And it is an effort that we all recognize and we are all working together on. Senator Shelby. Mr. Secretary, how is HUD addressing within the continuum of care process the disadvantages faced by small towns and rural communities in their ability to compete for grants? Senator Crapo raised that earlier in his opening settlement. Mr. Bernardi. The capacity of rural areas obviously is not that of urban or suburban areas, but we have found, as I think I mentioned earlier, that the continuums work well in totality, making sure that all of the areas within their particular jurisdiction are represented and receive assistance. I did mention that 10 percent of the projects that we fund are in rural areas, and perhaps they are about maybe 10 percent of the homeless population. I also believe prevention, as Mayor Fenty indicated, that is going to go an awfully long way, especially when you have people that are just on the edge. Those prevention dollars I think will go a long way in the rural areas--a lot of people are probably doubled up--to not have them fall into homelessness, to making sure that the resources are there in prevention, up to 30 percent the continuum can use with the new legislation, hopefully it will be passed soon, and utilize those dollars to assist people with a utility bill or a rent payment so that they do not fall into homelessness. Senator Shelby. Well, as you are aware, most States--and particularly my State of Alabama, we have large cities like Birmingham, Mobile, Huntsville, and Montgomery and so forth; and then we have a lot of small rural areas that will be impacted. And we want to make sure there is fairness in these programs. Mr. Bernardi. And the numbers that I mentioned, we are very cognizant of the fact that--we have a Homeless Management Information System, and of the 450 continuums, about 413, I believe, are now part of our Homeless Management Information System, and what that does is they get extra points in the competition to count the homeless population. Where is that population? What are the needs? And how are you addressing it? Senator Shelby. Thank you for your indulgence, Mr. Chairman. Senator Reed. Thank you, Senator Shelby. Senator Casey. Senator Casey. Yes, Mr. Chairman, thank you very much. And I wanted to thank the witnesses for their testimony. For purposes of this hearing, we will refer to all of you as ``Mayors,'' if that is all right. But we appreciate the fact that you are literally, depending on whatever the military analogy is, on the front line, in the trenches. All those apply. So I think your perspective on this issue, but in particular the reauthorization, is especially relevant and pointed and focused. So I wanted to ask you about, I guess, currently where things are and, second, how this legislation would positively impact your work to end homelessness in your communities. I was particularly interested in the question of families that have children with chronic disabilities or other more difficult circumstances and whether or not what is happening now under current law as opposed to what would be the case under the reauthorization, and in particular the Reed-Allard bill, how that would positive--I hope positively--impact that situation. If any of you can speak to that, and certainly the Secretary is more than familiar with the current status of that issue in terms of how we deal with chronic illnesses with children. Mr. Bernardi. Approximately 50 percent of the resources that we spend are to help the homeless with children. We do not list that as chronic homelessness unless there is a disability there. We feel very strongly that the chronic homeless population that exists in this country--and it is numbered at about 170,000 right now--that those are individuals--and I believe it was Senator Reed in his opening statement mentioned that they are chronic. They have been out on the street for a significant period of time. They have had multiple incidences of homelessness. A very difficult-to-reach population. As mayor, I recall seeing the same individuals that you try to assist and the revolving door and they would be back out on the street. So we feel very strongly we need to put those individuals in permanent housing--not at the expense of families and children. As I mentioned, 50 percent of our resources go for families and children. But that chronic population--of 750,000 homeless people, we have 170,000 of them. They use about 50 percent of the emergency resources in this country. So we really need to take those individuals, provide them the emergency shelter, obviously the transitional, but get them into permanent housing. That is why we offer more points than the competition for continuums that do permanent housing. We feel that is the way to have those people hopefully be able to come back to a life of respect for themselves and of dependency, if you will, on themselves, but never at the expense of taking care of families and children. Senator Casey. Thank you. Mayor Fenty or Mayor Franklin? Ms. Franklin. I would like to just add ``ditto'' to that, because we look at our numbers from 2007, there are two aspects of the changes that will help us. One is the flexibility and the ability to work toward prevention. Those two are really important to us because the flexibility gives us the chance to look at where the services are currently provided for homeless individuals or families with children and, therefore, assess where the greatest need is in the course of our work. But our numbers show that we have 17, almost 18 percent of our homeless population which is families and family members, which tells you very quickly that our numbers track much of what the Secretary has said, large number of adult males who have to be served if we are going to serve the homeless population successfully. So we really have to work on both ends. And, frankly, the hardest piece in a city like Atlanta in our urban area, where we experience the most NIMBY factors are with the single men. So we would hope that the bill would speak--would allow us the flexibility to deal with both, depending on where the need is. Mayor Fenty. Two quick points, Senator. One, there is in the District of Columbia, less than 4 miles from here, a homeless shelter that we are actually trying to close and move those families into the type of supportive apartment-style living that the country would be proud of. And it is just so tough in the District, and so I cannot overemphasize how important any scarce dollars are for this purpose. And I think families are a very reachable population, and so the second point I would just make is that the preventive dollars that I talked about in this legislation are just so critical, because obviously no one wants to become homeless, but I think that is even more so with families. And so the more we can help them pay rent, pay utilities, or some other bill that could put them on the brink of homelessness, I think we are doing a lot not just for that individual parent but for the young kids who then could fall into a system or a pattern of homelessness themselves. Senator Casey. Thank you. Senator Reed. Thank you very much, Senator Casey. Senator Martinez. Senator Martinez. Well, thank you, Senator Reed. Secretary Bernardi, are we making progress with the chronic population, which to me seems to be the very crux of the problem. As I look back to what my goals were, I was always focused on the chronic population, which seems to take such a disproportionate share of the dollars compared to the rest of the homeless population and who are afflicted with other ongoing problems which caused their homelessness in the first place. Mr. Bernardi. We are, Senator. Over 200 continuums have reported in 2006 that their numbers of chronic homeless has decreased, so progress is being made in that area. A very difficult population to serve, as you know, Senator, but we are pointed in the right direction. And we feel that the continuums, not only the 200 but others, with the programs that we have in place, with the consolidation especially with the preventiveness of it, we can utilize additional resources to take care of that population. Senator Martinez. It seems to me a good idea to commend Senators Reed and Allard for their bill as well as the HUD proposal, which I think are very, very similar. Certainly consolidating the grant programs seems to be an idea whose time has come, and it would be a great thing. But the one thing I would hope as we go forward is that there continues to be a focus on the chronic population as a key component of our strategy to end homelessness. And so I presume does not do anything to change that. Mr. Bernardi. Our bill does not, no. We want to continue that definition of chronic homelessness and work on that. I think as Mayor Franklin indicated, the predominance of single individuals, predominantly men, who are out on the street, you know, that recidivism, we just really need to continue our efforts on that, and not at the expense of anyone else out there, but at the same time making sure we continue to reduce those numbers. Senator Martinez. I think as we reduce those numbers, there will be more dollars available to help the remaining population, which oftentimes are more inclined to not fall back into homelessness. You know, what the mayor is trying to do with prevention and things like that, I mean, those are folks that are not going to be homeless but for the circumstances they find themselves in at a moment in time. Mr. Bernardi. You find in many instances that it is a single occasion for most people and families. They enter into a homeless situation because of a job loss or a domestic situation, and they are in and out of the system. But it is the chronic homeless that, as you mentioned, take a significant amount of the resources. So I think to continue the attention and the focus on that is extremely important. Senator Martinez. Mayor Fenty, I know that we are not--when I was at HUD, we worked very closely with your predecessor in terms of the special relationship with the District that I know HUD has enjoyed, and I am sure that will continue in the future. But I want to commend you for your efforts. I know that my own interest in this issue was sparked by my first coming to D.C. and seeing in our Nation's capital the condition of homelessness, which I know President Bush also reacted to. And I think he and I and I know many others share in your goal that our Nation's capital ought to be a place where homelessness is a thing of the past. So I look forward to helping you in any way that I can. Mayor Franklin, I wanted to touch on something else, too, which I think just to commend you for the great job that your city does with your housing authority and Renee Glover, who is such a great leader in that area, and yesterday we were in this room talking about HOPE VI and the reauthorization of HOPE VI and the hope that it brings to communities. And I know that you are a fine example of that, so thank you for being with us today and continue your good work in Atlanta, to you and Ms. Glover as well. Ms. Franklin. On that point, I would like to add that the housing authority is engaged in initiatives around eliminating chronic homelessness by designating vouchers that assist us in placing the chronically homeless in our housing authority projects. So they are a full partner, and I am not here to testify on that, but I would have been yesterday. Thank you. Senator Martinez. Thank you, ma'am. Thank you very much, Mr. Chairman. Senator Reed. Senator Menendez. Senator Menendez. Thank you, Mr. Chairman. I appreciate you holding this hearing. I appreciate your leadership on this question of homelessness. You know, we have 20,000 people in my home State of New Jersey that are homeless every day. We have three-quarters of a million people on any given night in America that are homeless. In my mind, that is really not acceptable. And when we talk about this issue, you know, home in my mind is the fundamental essence of strong families and strong communities. It is where we are brought to when we are born. It is where we are nurtured during the course of our lives. It is where we come to for celebrations and where we go through bad times. It is in essence where our heart is, and it is the very essence of creating, as I said, strong communities and strong families. As a former mayor myself, there is nothing that bothered me more than to see someone who did not have a place to call home. So this is a critical issue, and, you know, Mayor Fenty, I appreciate the fact that--I think it was just reported that here in the District homelessness was reduced by 6.5 percent and chronic homelessness by 6 percent last year. I know the Ranking Member asked you some questions, and that is clearly progress, so we applaud you on that. Let me ask you, though, I think in your testimony you said families that are forced to double up are not considered homeless for the purposes of technically homeless, but as you say, they are at a high risk for becoming homeless. With your experience, how are you trying to deal with that issue? Mayor Fenty. Well, it really is housing, primarily, to make sure that the residents have the ability to live on their own instead of having to double up, and that is why the dollars that we are talking about here today are so important. The other thing I just want to say kind of goes to Secretary Martinez's point, and that is, the amount of help that comes from the Federal Government really leverages the local official. And as a former mayor and all of us as mayors and former mayors know, the chronic homeless, the people who need our employment agency to work with them or a mental health agency, the more housing we provide, the more we get at the people who are kind of the ``lower-hanging fruit,'' the more my administration can focus on the really tough problem that you are really just going to have to work with one on one through our Department of Human Services. So as much as I think this bill is forward-thinking and going after the people who may become homeless or the families who may just have become homeless, it will help our administration be able to put even more resources into the chronically homeless residents who really are the people who I think people who are coming into the city, who travel downtown see hanging out in the parks or under the bridges, and the only way we can get them is with an infusion of resources by a whole team of people on the local level. Senator Menendez. And that is one of the concerns I have, and that is why I asked you the question, because whether it is yesterday's hearing on HOPE VI, you know, we cannot continue to have zero in the budget. And the reauthorization of that I think is incredibly important. We have great experiences in New Jersey. And then see a 17-percent cut in the capital funds for public housing authorities and see the ripple effect and then the asset-based management that is making it increasingly difficult for a lot of these public housing authorities. And so I look at the ripple effect of this, and today we are focused on homelessness, but at the end of today it is about how much housing stock do you have, what type of resources do you have to meet all of these challenges in a holistic way. Mr. Secretary, on that final note, let me just ask you: Senator Reed's bill allows families with one disabled parent to be included in a category of chronic homelessness. I understand the administration keeps its definition on chronic homelessness the way it is and does not include Senator Reed's view. Don't you believe that when we have an adult in a homeless family that is disabled that that is a serious crick in the chain? And, second, on the same question of families, Senator Reed's bill ensures that 10 percent of national funding goes to chronically homeless families with children to provide permanent housing. Does the administration's proposal do the same? And if not, why not? Mr. Bernardi. On the disability of an individual in a family, I would agree with you the answer is yes. I would think that would qualify--that should qualify as a disabled homeless person if there is a person in the family that is homeless. On the bill, the 10 percent, I am not familiar with our point on that bill, but what I will do is take a look at---- Senator Menendez. Well, we would love to hear back from the administration. Mr. Bernardi. But I think we are close on so many of the areas, and I want to just reiterate what Senator Martinez stated. Senator Reed and Senator Allard have been working on this for a few years with their staffs and with our Special Needs Assistance Program, and I think we are close, and I just hope that we will be able to put it together. I think it is long overdue, and it would provide the kind of speed and the kind of assistance and flexibility that the mayors at the table here and all over the country need. Senator Menendez. Well, I appreciate that. I appreciate both for their leadership. But just a last point on families, at the end I think one of the mayors said no one wants to be homeless, and we do not want anybody to be homeless. But it seems to me the ripple effect in our society, particularly when families are homeless, is such an enormous consequence. It goes into our schools. It has many dimensions to it, and so I really applaud both of them and that element of the bill, and I hope the administration can work its way to find common ground with them on that and certainly look to be supportive of it. Thank you, Mr. Chairman. Senator Reed. Thank you, Senator. Senator Allard. Senator Allard. Thank you, Mr. Chairman. As you know, Mr. Secretary--or maybe you do not know--I have taken a particular interest in the PART program, and the current programs that you have at HUD dealing with the homeless and everything have been effective programs, according to that. And so I am curious to see how you are measuring your outcomes now and how you might measure them under this reauthorization of McKinney-Vento and if this will actually improve your ability to measure outcomes. Mr. Bernardi. Senator, we believe so, and I do know of your interest in GPRA. Each one of the continuums and the applicants, they provide an annual progress report, and that annual progress report is reviewed by the continuum in the area that it represents as well as by HUD. And as you mentioned, in the Program Analysis Report Testing through OMB, our Special Needs Assistance Program did score very, very high. It scored at 87. It was judged as one of the most effective programs in the country. Just some of the statistics on that. The percentage of formerly homeless individuals who remain housed in HUD permanent housing projects for at least 6 months, our goal for 2007 is that will be 71 percent. And we met that goal in 2006; also, the percentage of homeless persons who moved from transitional to permanent housing, 61 percent. Now, the employment rate of persons exiting HUD's homeless assistance programs will be 18 percent. That is another component, I think Senator Menendez indicated it. You know, we need to make sure that we prevent people from falling back into homelessness. We also plan to create another 4,000 new permanent housing beds for the chronically homeless. We did that in 2006, just a couple hundred shy of 4,000, but our goal for 2007 is 4,000. The performance measurement, we look at that very closely. The continuums do as well. And I think the consolidation will just give us an opportunity to have the continuums even more effectively work with the recipients in their respective jurisdictions to make sure that the best value for the dollar is being received. Senator Allard. Thank you. I am going to address the next question to both the mayors. Mayor Fenty, I have watched your new administration here in D.C., and I congratulate you on a good start. As you know, you have testified in front of the committee on which I serve on D.C. appropriations, and also it is good to see you here and hear what you have to say about homelessness. You know, I do think that it is important that we have a lot of cooperation between entities, and I believe that we need to do what we can to encourage more cooperation. What are your thoughts about the entities, local entities that you have in and around Washington, D.C.? Are you all on the same page on this? Do you come out going on your own? Or are you so competitive that you cannot cooperate? I would like to hear some of the comments you have on that and if you think that this bill will help us straddle some of these multiple jurisdiction issues. Mayor Fenty. As you are aware from working, Senator, I think there is the type of regional cooperation that is a model for the rest of the country, not only because of the fact that so many people from Maryland and Virginia work in the city, but because the District is small geographically and we work with our regional partners. So through COG, through the Council of Governments, there has been an enormous amount of discussion and solutions put forward on how to deal with affordable housing and the crisis and how that impacts the homeless population. We will continue--I do think that the District is so different from the neighboring jurisdictions that there will not be any competition, that it will be the exact opposite, that there will continue to be collaboration. And I think that is also true with the Federal Government. It is lucky to be here in the District because we work very closely with the Senate and with the administration. And one place I think we can do even more of that is just specifically in the District. I do not know if it is the case in other cities. Our long waiting list for housing vouchers is detrimental to anyone who is looking for affordable housing. But for those who are homeless, they are so far back on the list that it is not even a useful tool anymore. And there may be a way going forward that we give more of a preference to homeless residents or looking into some other program. Senator Allard. Mayor Franklin, do you have any comments in that regard? Ms. Franklin. Just briefly. The initiative to develop a plan started as an initiative of my administration, which is the city of Atlanta, 500,000 in population. We have grown that collaboration to cover eight jurisdictions, moving from 500,000 to nearly 3 million people are represented by their elected officials and business leaders on our Regional Commission for the Homeless. That regional commission is a voluntary service, so just in 4 years we have been able to show that this initiative can gain support outside of our own political jurisdiction. And I would say it is probably one of the best examples in Atlanta's history of voluntary cooperation on an initiative. And to the extent that the flexibility is built in, as I understand it, certainly not as thoroughly as the Secretary does, we would be able to work across political jurisdictions on this continuum of care. And I would note that while the city issued $22 million in bonds using a car rental tax to finance those bonds for transitional housing and housing with supportive services, we make those funds available outside of our political jurisdiction because of the level of cooperation that we have developed over the last 4 years. So we are hopeful that the flexibility will reinforce the kind of cooperation that we have developed over time. Senator Allard. Thank you for your comments. Thank you, Mr. Chairman. Senator Reed. Thank you, Senator Allard. Senator Bennett. Senator Bennett. No questions. Senator Reed. Thank you very much for your excellent testimony. We will keep the record open because my colleagues might have written questions which we would ask you to respond to, but, Mayor Bernardi, Mayor Fenty, Mayor Franklin, thank you very much. Let me call the next panel forward. Thank you very much. At this time I would like to recognize Senator Bennett, who will introduce Mr. Pendleton. Senator Bennett. Senator Bennett. Thank you very much, Mr. Chairman. I appreciate Lloyd Pendleton's being here and the Committee's wisdom in inviting him. I think he brings a view of this whole issue that is both unique and very useful. He graduated from Brigham Young University with a bachelor's degree in political science and an MBA, and then worked for Ford Motor Company in Detroit for 14 years in the finance area before the Church of Jesus Christ of Latter Day Saints reached out for him and brought him back to Utah, where he has spent the last 25 years in the church's welfare department implementing a worldwide humanitarian program, and overseas, the expenditure of millions of dollars and millions of hours of volunteer labor aimed at humanitarian activities around the world. During the last 2 years of his career with the church, he was a loaned executive to the State of Utah to assist the State in the development of a 10-year plan to end chronic homelessness and facilitate an organizational structure for implementing the plan. And last year he began working full-time for the State, after having the loaned status, to develop a 10- year plan, and he is presently employed by the State in the Division of Housing and Community Development in the Department of Community and Culture. So we are very proud of you, Mr. Pendleton, and I am happy to introduce you to the Committee and welcome you here to the Senate. Mr. Pendleton. Thank you. Senator Reed. Thank you very much, Senator Bennett. Let me introduce the other panelists. Ms. Linda Glassman is the current Secretary for the National AIDS Housing Coalition Board of Directors. Ms Glassman has been the Executive Director of the Corporation for AIDS Research, Education, and Services, CARES, in Albany, New York, for the last 12 years. CARES is a not-for-profit agency that provides technical assistance and consulting services to State and local governments, not-for- profit agencies, and funders regarding the planning, development, implementation, and evaluation of housing programs for homeless persons and persons who are living with HIV/AIDS and other disabilities. Prior to coming to CARES, Ms. Glassman worked for more than 15 years in the provision of housing to homeless individuals, including victims of domestic violence, runaway and homeless youth, and homeless families. Thank you, Ms. Glassman. Ms. Carol Gundlach is Executive Director of the Alabama Coalition Against Domestic Violence. Senator, do you have any words to say? Senator Shelby. Mr. Chairman, thank you. I would be glad to reiterate some of the things that I had said earlier. She is well known in Alabama for what she stands for and what she has done. She is the Executive Director of the Alabama Coalition Against Domestic Violence. She is a member of the board of directors of the National Network to End Domestic Violence, and she has been very active in the area of ending homelessness, which we are all interested in housing. It is all connected in some way some days, and we are proud to have here testifying today. Thank you, Mr. Chairman. Senator Reed. Thank you, Senator Shelby. Mr. Moises Loza is Executive Director of the Housing Assistance Council, HAC, a national not-for-profit corporation that works to increase the availability of decent housing for rural low-income people. The organization provides technical assistance, training, research, and has a revolving loan fund with assets of approximately $60 million to assist with the development of housing for low-income families and hard-to- serve populations in rural areas. The Housing Assistance Council has loaned over $218 million, which has helped build over 60,000 units of housing in 49 States, Puerto Rico, and the Virgin Islands. It also conducts legislative policy and program analysis to assist, Federal, State, and public bodies and others to serve rural areas more effectively. Welcome, Mr. Loza. Finally, we have Ms. Nan Roman, who is well known and who has testified many times before this Committee, and we thank her for joining us today. Ms. Roman is President and CEO of the National Alliance to End Homelessness, a leading national voice on the issue of homelessness. The alliance is a public education, advocacy, and capacity-building organization with over 5,000 nonprofit and public sector member agencies and corporate partners around the country. Under her leadership, the alliance has developed a pragmatic plan to end homelessness within 10 years. To implement this plan, Ms. Roman worked closely with Members of Congress and the administration as well as with cities and States across the Nation. She collaborates with alliance members to educate the public about the real nature of homelessness and successful solutions. She has researched and written on the issue, is frequently interviewed by the press, and regularly speaks at events around the country. Her unique perspective on homelessness and its solutions comes from over 25 years of local and national experience in the areas of poverty and community-based organizations. Welcome. All of your statements are part of the record, and we would ask you to take 5 minutes and either summarize your statements or make any comments you wish, beginning with Mr. Pendleton. Welcome, Mr. Pendleton. STATEMENT OF LLOYD S. PENDLETON, DIRECTOR, HOMELESS TASK FORCE, DEPARTMENT OF COMMUNITY AND CULTURE, DIVISION OF HOUSING AND COMMUNITY DEVELOPMENT, STATE OF UTAH Mr. Pendleton. Thank you. Thank you very much, Senator Reed and Ranking Member Shelby, for this hearing. I am honored to be able to comment on the Community Partnership to End Homelessness Act. I am also grateful for the support of our Utah Senators--Senator Bennett, who is a Member of this Committee, and Senator Hatch. During the last 5 years, the approach to serving persons in homelessness has shifted dramatically, as been commented here today. Because of your direction, the McKinney-Vento funding, and the 10-year planning emphasis, great strides have been made in Utah the last 3 years on tackling the difficult problem of homelessness. I will share several initiatives that we have undertaken in the last 3 years. One is our State Homeless Coordinating Committee, which was created in 1988, was restructured with the Lieutenant Governor as the Chair, and selected members of the Governor's cabinet and other policy-level decisionmakers were added as members. Four new committees with statewide responsibilities were created to focus on improving discharge planning, increasing affordable housing, increasing and improving supportive services, and implementing a statewide Homeless Management Information System. The Housing First model that has been developed in New York was introduced in Utah in August of 2005 with taking 17 chronically homeless individuals and putting them into housing, and they had a 25-year average of being on the street. This pilot has provided the experience and the confidence for us to implement other larger Housing First projects. Twelve Local Homeless Coordinating Committees have been organized across the State, with local political leaders as the Chair of each committee. Each has prepared or is preparing a 10-year plan that is aligned with the State's 10-year plan that implements local programs to meet the local needs. Each of these Local Homeless Coordinating Committees has implemented or is implementing a pilot focusing on results-oriented solutions for the chronically homeless and/or those that are chronic consumers of resources. This has especially raised the awareness of the rural political leaders in addressing the needs of the homeless. The homeless in the rural areas have not been as invisible as they are in the urban areas, and so this has made them much more aware. Case managers assess their clients and track their self- sufficiency progress as part of a statewide Homeless Management Information System using a self-sufficiency matrix that we learned about that had been developed in Arizona. A housing project of 100 units for the chronically homeless opened in March of this year, and another complex of 84 units will open in March of 2008. And a renovated hotel that is being purchased this month will be opened up late in 2008 and create 213 permanent units for the homeless. Utah participated in the SSI/SSDI training that you provided, and in the pilot we have reduced the decision time from almost 2 years to 3.2 months. The HUD McKinney-Vento programs are effective and useful for us. The programs mentioned above, and others, have created a momentum and excitement within Utah about our ability to realize the goal of ending chronic homelessness and reducing overall homelessness. Much of what we have accomplished is from more effectively reinvesting existing resources to achieve the desired outcomes. Continuing to build the momentum, however, will depend upon additional resources and continued collaborative efforts with the Federal Government, State and local governments, nonprofit and faith-based service providers, private foundations, and businesses. This is a society-wide problem that requires the cooperative participation of all of these organizations. The proposed Community Partnership to End Homelessness Act addresses much of what has been learned in the last 20 years, and we applaud the changes to the bill that have been discussed and are proposed. It will significantly benefit our eight Local Homeless Coordinating Committees covering Utah's rural areas. In conclusion, we in Utah support the proposed changes in the Community Partnership to End Homelessness Act. I am proud of what we have accomplished. These accomplishments have come from the efforts of many caring and committed people. I am convinced if there is any State that can end chronic homelessness and reduce overall homelessness, it is Utah. Our target date to accomplish this is 2014. Thank you. Senator Reed. Thank you very much, Mr. Pendleton. Ms. Gundlach. STATEMENT OF CAROL GUNDLACH, EXECUTIVE DIRECTOR, ALABAMA COALITION AGAINST DOMESTIC VIOLENCE Ms. Gundlach. Yes, sir. Senator Reed, Ranking Member Shelby, and distinguished Members of the Committee, my name, again, is Carol Gundlach, and I thank you for the opportunity to testify this morning. I speak today on behalf of the Alabama Coalition Against Domestic Violence and the National Network to End Domestic Violence. The interrelated nature of domestic violence and homelessness is undeniable: 92 percent of homeless women have experienced severe physical or sexual assault. Experiencing domestic violence or sexual assault often forces women and children into homelessness. Because so many women and children become homeless as a result of domestic violence, it is impossible to separate the two issues into distinct categories. If we do not address domestic violence, children will continue to grow up in fear and in poverty, likely to repeat the cycle of homelessness. McKinney-Vento has provided significant funding for domestic violence shelters, transitional housing programs, and services. In 2005, over 600 domestic violence programs received nearly $118 million in McKinney-Vento funding. Unfortunately, HUD's practice in recent years have caused a range of problems for victims of domestic violence and for the programs that serve them. As the Senate moves forward in reauthorizing McKinney-Vento, domestic violence service providers would support a bill that returns control to local communities and works for homeless families by expanding the definition of homelessness, reducing bonus points and set- asides, distributing funds to rural areas in a more equitable manner, and protecting the privacy of service recipients. Senate 1518 takes great strides beyond current HUD practice, and we thank Senator Reed and Senator Allard for their work on this legislation, and we look forward to working with the Banking Committee to pass a bill that meets the needs of all homeless individuals and families. The difficulty in addressing homelessness within Alabama provides a window into the complexities faced by many local jurisdictions. In Alabama, the homeless are often invisible, and it has been a real challenge to conduct a point-in-time survey in rural counties. We have long stretches of land where our volunteers run the risk of being shot if they wander through people's fields looking for homeless individuals who might be sleeping in barns or sheds. We see little, if any, chronic homelessness in rural Alabama or even small towns in Alabama. There are people who are at risk of chronic homelessness, but they are often from the local community and are doubled up with friends or family or sleeping from couch to couch. Many are in substandard housing conditions, and it is common in Alabama to see two or even three nuclear families sharing a dilapidated mobile home. The homeless families and individuals in Alabama may be less present on the streets or in front of local businesses. Their needs are just as real. Families and youth doubled up can be less safe than they are in shelters. Despite the desperate need for HUD-funded housing and supportive services, these families and youth cannot access that assistance because HUD does not count them as homeless. A broader definition of homelessness would accurately reflect homelessness in Alabama and be more inclusive of victims of domestic violence and people in rural areas. Currently HUD sets aside at least 30 percent of funds for permanent housing for single adults with disabilities and awards points to continuum of care applications based on HUD priorities, including that of serving chronically homeless individuals. This takes decisionmaking away from the local service providers and local communities who we believe are best equipped to analyze the needs of homeless individuals and to develop effective responses. In our experience, this top-down decisionmaking can lead to unintended results. The Coalition Against Domestic Violence took the lead in organizing a balance of State continuum of care incorporating most of the rural areas and small towns in our State. None of our proposals for services have thus far been funded, except for a small grant to develop a Homeless Management Information System, or HMIS. So we are in the peculiar position of developing an HMIS system for a region with no homeless assistance grantees and, therefore, no homeless individuals to include in the system. As a result of the Chronic Homeless Initiative and the 30- percent set-aside, local domestic violence programs in at least 23 States have lost funding or are being told that they will soon lose funding because they do not serve the chronically homeless. The funding situation is much worse in rural areas because of pro rata share and emphasis on chronic homeless have heavily favored urban areas. Every community has different groups who are very difficult to serve, and prioritizing one over the other at the Federal level does little to help each State address their unique homeless population. To ensure that victims of domestic violence, children, and homeless individuals in rural areas are served, reauthorization of McKinney-Vento should return decisionmaking to local communities. This can be accomplished by significantly adapting or reducing the 30-percent set-aside for permanent housing for disabled individuals and by removing bonus points that prioritize chronic homelessness. Senate 1518 takes several very important steps toward a balance by expanding the 30-percent set-aside and the definition of chronically homeless to include families headed by adults with disabilities, and we applaud this change. We also believe that Senate 1518 should further expand these categories to include families with children who are disabled as well as disabled adults. If combined with a broader definition of homelessness, these programs would be much more responsive to the needs of communities, including our rural areas. Thank you for your consideration and your support for domestic violence victims. Senator Reed. Thank you very much. Mr. Loza, please. STATEMENT OF MOISES LOZA, EXECUTIVE DIRECTOR, HOUSING ASSISTANCE COUNCIL Mr. Loza. Thank you, Chairman Reed, Ranking Member Shelby, and Senator Allard. We thank you for inviting the Housing Assistance Council to offer testimony on Senate bill 1518, the Community Partnership to End Homelessness Act. My name is Moises Loza. I am the Director of the Housing Assistance Council, a national nonprofit dedicated to improving housing conditions for low-income rural Americans. I work like to thank you, Senator Reed, for your work to assist homeless people, and I also want to thank Senator Shelby for his efforts on behalf of the rural homeless. Although homelessness is widely viewed as an urban problem, rural individuals and families also experience both literal homelessness and extremely precarious housing situations. Literal homelessness--living on the street or in a shelter--is less common in rural areas. Homeless people in rural areas typically experience precarious housing conditions, moving from one substandard, overcrowded, or cost-burdened situation to another, often doubling or tripling up with friends or relatives. HAC analysis of the American Housing Survey data shows that over 6 million rural households experience a precarious housing condition, threatening their ability to achieve housing stability, and placing them at risk of homelessness. The ability of rural organizations to meet the needs of homeless persons has often been hindered by geographic, programmatic, and organizational capacity constraints. Several structural issues limit the creation of these resources in rural areas. Such issues include a lack of community awareness and support, a lack of access to services, difficulties in assessing need, and definitions that limit resources to those who are literally homeless. For these reasons, using Federal resources can be difficult in rural areas. Providers in rural communities have a strong incentive to emphasize homelessness prevention and permanent rehousing options. They depend on the best resources available, including Federal programs created by the McKinney-Vento Act. The changes proposed in Senate bill 1518 will improve rural access to essential homelessness assistance resources. Senate bill 1518 demonstrates a critical and innovative thinking about the challenges facing homeless persons and providers and recognizes the realities of homelessness in rural communities. Currently, continuum of care funds cannot be used for prevention activities, but Senate bill 1518 lifts this barrier for rural communities, and we applaud this change. The Community Partnership would also consolidate HUD's three main competitive homelessness programs to reduce the administrative burden on communities caused by varying program requirements. Such a consolidation will benefit groups like the Tennessee Valley Family Services, a nonprofit organization in Guntersville, Alabama. Tennessee Valley serves the needs of runaway youth, other homeless youth, and children in need of supervision. Streamlining the application process for its varied programs would enable Tennessee Valley staff to spend more time delivering aid and less time on administrative work. HAC supports the Rural Housing Stability Assistance Program because it will help local rural organizations address and prevent homelessness in their communities. The program uses the CDBG formula for distribution of funds, and as has been said before, we as rural advocates are obviously interested in the fair share going to rural communities. The value of flexible targeting allowed in the Rural Housing Stability Assistance Program is demonstrated by the work of Bishop Sheen Ecumenical Housing Foundation, a HAC partner and faith-based organization that serves 13 rural counties in New York. A striking story illuminates the work of Sheen Housing that help keep low-income persons away from literal homelessness. In this situation, Mr. C, his wife, and his 17-year-old son all live in housing where the ceiling was literally about to collapse. Sheen Housing made the needed health and safety repairs, including replacing the ceiling, repairing the roof, and painting the interior. Mr. and Mrs. C and their son are now able to remain in their home. HAC also supports the simplified application and capacity- building portions of the Rural Housing Stability Assistance Program. Across the Nation, rural residents need housing and services. Yet many of these residents are still crowded into others' homes, at risk of injury in substandard housing, unsheltered, or still paying more than they can afford, simply because community-based and faith-based organizations in their areas do not have the knowledge or funding to help them. As an intermediary organization for 36 years, we have repeatedly said that strengthening the capabilities of local rural housing organizations can provide immense benefits to rural communities. The simplified application will help rural communities access much-needed resources. Capacity-building funds will provide investments that enable local rural organizations to meet the needs of homeless and precariously housed people. In short, the Rural Housing Stability Assistance Program is sensitive to the needs of rural communities and presents crucial, flexible resources for rural organizations providing homeless assistance programs to their communities. Senator Reed. Thank you very much, Mr. Loza. I would note that a vote has just been called, and we have about 12 or so minutes left to go. So I think the best thing to do would be to stand in recess for a moment, allow us to vote, and we can return and you can complete your testimony without interruption, and then we will get to the questioning. Thank you for your forbearance. The Committee will stand in recess until we return from the vote. [Recess.] Senator Reed. Let me call the hearing to order again. When I left, the lights were brighter and the music was not playing. [Laughter.] So I am glad you had the opportunity to relax. Again, I apologize, but the one unavoidable obligation is going to vote, and we had to do that. I believe we are up to Ms. Glassman. Please. STATEMENT OF LINDA GLASSMAN, SECRETARY, BOARD OF DIRECTORS, NATIONAL AIDS HOUSING COALITION Ms. Glassman. Thank you, Senator Reed, for allowing us to give testimony on this most important issue. My name is Linda Glassman. I am here today representing the National AIDS Housing Coalition, which is a 13-year-old national not-for- profit housing organization working to expand resources for housing persons with AIDS in communities nationwide. I am also the Executive Director of CARES, a not-for-profit agency in Albany, New York, which not only provides housing for persons with HIV/AIDS but also coordinates the McKinney-Vento Act- funded Continuum of Care process in four counties in northeastern New York and provides support in understanding the Continuum of Care process to a variety of communities, both urban and rural, throughout upstate New York. Consolidating and streamlining the Federal low-income housing programs that respond to homelessness is very important to the National AIDS Housing Coalition because of the tremendous impact that homelessness has on the health and longevity of persons living with AIDS. A number of research studies have now demonstrated that homelessness is a major risk factor for AIDS, and HIV is a major risk factor for homelessness. The National AIDS Housing Coalition's Research Summit initiative provides a regular forum for researchers, housing and homeless policy experts, residents of AIDS housing programs and their advocates to explore the role that stable housing plays in HIV prevention, care, and treatment. One of the Research Summit's most important documented findings is that up to 60 percent of persons living with HIV/AIDS have had an experience of homelessness or housing instability at some time during their illness. As a result of this and other compelling research findings, NAHC has adopted a policy imperative making housing homeless persons with HIV/AIDS a top prevention priority. Because of the documented importance of providing adequate, affordable housing for persons living with HIV/AIDS, the National AIDS Housing Coalition has strongly supported the Housing for Persons with AIDS--HOPWA--program. However, we estimate that the HOPWA program currently falls $168 million short of meeting the national need for housing for persons living with HIV/AIDS and their families. In many communities, such as my own in upstate New York, more homeless persons with HIV/AIDS are assisted in acquiring and maintaining stable housing with McKinney-Vento Act dollars than with HOPWA funding. Therefore, reauthorization of the McKinney-Vento Act has a direct impact on the provision of transitional and permanent supportive housing for homeless persons with HIV/ AIDS, along with homeless persons with other disabilities. The National AIDS Housing Coalition strongly supports the Community Partnership to End Homelessness Act of 2007. The bill's sponsors have given careful consideration to what has worked well in the existing legislation and have been able to retain that, while making needed changes to parts of the legislation in order to better facilitate local efforts to end homelessness. The National AIDS Housing Coalition is supportive of the Community Partnership to End Homelessness Act's focus on community collaboration, its flexibility in the types of entities that can serve as a collaborative applicant, and its creation of a standard matching requirement. There are three particularly positive aspects of the legislation that we would also like to highlight. The first of these is the increased emphasis on prevention and rehousing activities. It makes absolute sense to intervene before people become homeless, providing them with the temporary support needed to make a rent payment or cover the cost of utility bills, rather than to wait until they become homeless to serve them. It also makes sense to offer rehousing assistance to individuals and families who have already become homeless but who are not in need of ongoing supportive services. The provision of short- and medium-term rental assistance would enable these individuals and families to be stably housed while awaiting permanent housing provided by local housing authorities, Section 8 providers, and other mainstream housing assistance programs. Second, we would like to convey the National AIDS Housing Coalition's support for the proposed Rural Housing Stability Program. The National AIDS Housing Coalition includes members from rural communities that, while not having the same sort of visible homeless--and I think that is a term we have all used here--that the big cities have, have very high levels of poverty and homelessness, especially family homelessness. I work in a number of these rural communities in upstate New York and know firsthand just how difficult it is to make meaningful use of McKinney-Vento Act funding, especially with all the changes that have happened in the last few years. I know that for many of you the name ``New York'' does not exactly conjure up images of rural farmland and craggy mountain peaks, but that is exactly the topography of much of upstate New York. Many of the communities in which I work are located in the Adirondack Park in which there is much poverty, insufficient and poor-quality housing stock, little governmental infrastructure, and only a smattering of not-for- profit agencies. These communities, which can span several counties and 100 or more miles, do not have the capacity to meet all of the requirements of the continuum of care process, including holding monthly meetings of all providers, conducting point-in-time counts of homeless individuals and families-- especially since these are mandated to be held in the last week of January, when weather conditions can be prohibitive--and they may not have the resources needed to pay for costly data collection software. Because they have few major streets, these communities do not have any ``street'' homelessness; rather, homeless persons remain hidden from view in encampments, unheated barns, and other places not suitable for habitation. Because there are no emergency shelters, homeless individuals and families are housed by friends, their extended families, and by compassionate members of local religious congregations and other local residents, thereby disqualifying them from being considered ``homeless'' under the existing McKinney-Vento Act definition. My own experience is echoed by that of other National AIDS Housing Coalition board members who serve rural communities in Alabama, Missouri, Ohio, and even Hawaii. It is clear to us that these rural communities have different, not lesser, needs than their urban and suburban neighbors. The National AIDS Housing Coalition strongly supports the creation of the proposed Rural Housing Stability Program, which will provide rural communities with the latitude and flexibility needed to address their unique challenges. We also hope that sufficient funding is allocated to make this program a reality. I would like to add that I say this as the daughter of a man who spent a number of years in his childhood living in an abandoned chicken coop because his family had no housing. And I know that homelessness does not look the same as it does on the streets of Washington, D.C., and it does not look at the same as when I was working in Times Square in the late 1990's with homeless youth, well before Times Square was Disney-fied. But it is homelessness just the same, and I really applaud you for addressing it and for allocating appropriate resources toward it. The third aspect of the Community Partnership to End Homelessness Act of which we are particularly supportive is the shifting of renewal funding for permanent supportive housing programs to the Section 8 account. These programs are indeed meant to house people permanently, and it makes sense to renew their funding out of an account that is set aside for permanent housing. Even more importantly, this would free up McKinney- Vento Act money to be used to serve additional individuals and families rather than having most of it taken up with funding renewals. Certainly, the extent of the need for additional homeless housing resources more than justifies this shift. Having established our strong support for the Community Partnership to End Homelessness Act of 2007, and having focused on three particularly positive components of the legislation, we would like to offer just one suggestion, which is to consider making a modification of the definition of homelessness used in the legislation. We understand the need to use this funding to serve individuals and families who are most in need, but members of our coalition have encountered a small percentage of truly homeless persons who have not been eligible for permanent housing under the McKinney-Vento Act because they are unable to access emergency shelters, one of the only two means of qualifying as homeless for the purposes of accessing permanent supportive housing according to the existing Act. The National AIDS Housing Coalition respectfully requests that the bill's sponsors consider as homeless the following: one, people who are temporarily staying with friends or family who have stayed in at least three different households in the last year because they did not have the resources to rent a housing unit consistent with Federal housing quality standards; and/or, two, homeless people who are temporarily staying with family or friends whose presence in household in which they are staying causes the leaseholder to be in violation of the lease, such as in public housing or in the Section 8 program. We ask for this consideration because, in areas where there are no emergency shelters, the two mentioned circumstances are the two housing options most available to homeless individuals and families. We want to be clear that we are not asking for a wide expansion of the definition of homelessness, but just for geographic parity for those communities in which emergency shelter is not obtainable. We would also like to respectfully request that this definition be placed in the record. Senator Reed. Thank you. Could I ask you to conclude? Ms. Glassman. I am just about to. OK. Having made that request, we just want to express our strong support for the act, and thank you very much for letting us testify. Senator Reed. Thank you very much. Ms. Roman, your testimony, please. STATEMENT OF NAN ROMAN, PRESIDENT, NATIONAL ALLIANCE TO END HOMELESSNESS Ms. Roman. Thank you so much. First, I just want to thank you, Chairman Reed, so much for the leadership you have shown on this, and Senator Allard as well. I am sorry he is not here so I could thank him myself. We appreciate very much all you have done to try to move this forward and help us make progress over the years. We are tremendously grateful for that. I also want to thank you for inviting me to come here to testify on behalf of the National Alliance to End Homelessness Board of Directors. This really is, as everyone has said, a terribly important subject because the HUD McKinney-Vento Act funds provide resources to meet the needs of 1 percent of all Americans who become homeless every year and 10 percent of all poor Americans who experience homelessness every year. So it is a problem that is very wide-ranging. The funds are essential to meet the emergency needs of a diverse group of people, which everyone has described-- families, veterans, people with domestic violence issues. So the needs are very diverse, and their emergency needs need to be met. But the solutions to homelessness are also importantly funded out of this; as well, the process of allocating these funds really has become the locus over time of community discussions to try to make progress. So it is pulling a lot of other resources and agencies into the discussion, and I think that is an important thing as well. And most recently, it has played a key role in the implementation of these 10-year plans. Both Mayor Franklin and Mayor Fenty talked about the plans to end homelessness they had in their communities. A major resource that is used to implement those plans, which about 300 different communities are now working on, and has really--that planning effort really has changed the discussion around homelessness in a lot of places. These are the funds that go to do that. So we believe that the Community Partnership to End Homelessness Act does a really good job of codifying existing practice that is working, while increasing the focus on outcomes and enhancing community efforts with some new initiatives. And I will just point out a couple of the provisions that seem to us to be particular important. First, the needs of families, homeless families, require more attention. Your bill contains a host of provisions that will place attention squarely on solutions to family homelessness, including homelessness of families, as has been pointed out, who have domestic violence histories and experiences. Among the most significant things I think the bill does is provide the prevention funding that is available to families, increase the amount of resources available for housing services, provide some permanent housing for non-disabled families for the first time, and including families in the definition of chronic homelessness, which I think is an important thing. We can end family homelessness. We are learning a lot about how to do that, and I think this bill will help us move forward. A second thing is that prevention does make sense. But prevention efforts really do have to be carefully designed and targeted. There is a huge group of people in this country, unfortunately, with critical housing problems who could be candidates for prevention assistance. For example, using American Community Survey data, we estimate that there are between 2.5 and 10.5 million people who are doubled up for economic reasons. That is about somewhere between 4 and 15 times as many people as we currently define as homeless, and we are not even meeting the shelter needs of half of the 750,000 people we already define as homeless. Further, there are 13.4 million people who have worst-case housing needs, another group of people likely to be the target of prevention efforts. That is 19 times more people than are currently homeless. The McKinney-Vento Act programs cannot address the needs of everybody in the country with serious housing problems, at least not without significant and commensurate increases in funding, and even in that case I am not sure it would be a good idea to run everybody who has housing problems through the homeless system. But having said that, prevention does make sense. It can avert tremendous human suffering. It can avoid expensive remedial interventions. And your bill I think takes a sensible and much needed approach, which is to create a modest but significant pool of funds that communities can use strategically for people who are really at high risk of homelessness to avoid them falling over the brink into homelessness, including many people who are doubled up. So I think we can address the needs of vulnerable people without taking on the entire affordable housing crisis into the homeless system, and I think your initiative is very important in that respect. And the third thing which everyone has talked about, which I think is great, is the rural approach to rural communities. The problem of homelessness is different in rural communities. The current programs do not match up very well with the needs in rural communities. And rural communities have been disadvantaged in the competition because of their lack of capacity, and this is a shame because I actually think rural communities probably have more potential to end homelessness than urban communities. They have many fewer homeless people, and they have the mainstream systems more involved. They do not have this in-between big homeless system, which can be an advantage. So I think the changes that you propose in your bill really level the playing field with respect to the competition for funds, which is probably the main way rural communities are going to get more resources, and they give them more flexibility to address the problem as they see it. So I think all of the things that have been raised, issues that have been raised about rural communities, the bill really addresses that, and I thank you for that. So, in summary, the National Alliance to End Homelessness strongly supports the Community Partnership to End Homelessness Act. The act contains significant new and much needed initiatives on prevention and rural homelessness. It retains the commitment to meeting the needs of chronically homeless people, and I just want to mention that there are many veterans--this came up, and no one has really talked about that. But there are many veterans who fall into the chronic population, so that is important as well. It continues to target assistance to chronically homeless people and disabled people, including families, not only individuals. And it rightly expands the chronic initiative to include families. It additionally has a significant new focus on families, which is great. I think it does not pretend to be able to do everything that can be done about people with affordable housing problems. But it does really increase the focus on outcomes and move us forward and provide more flexibility, all of which people have said was needed. So we are very grateful for all you have done to move it forward. At the National Alliance to End Homelessness, we judge everything by one thing, which is whether it helps us end homelessness in the Nation, and we think that the act meets that test. So we are happy to be in support of it here today. Thank you so much. Senator Reed. Thank you very much. I want to thank all of the panelists for their excellent testimony, and we have an opportunity to ask some questions without being diverted by my colleagues. [Laughter.] Throughout the testimony of all the panelists was the issue of definition, and we face a very practical problem. We have a finite resource, about $1.8 billion, and if we expand the definition, then logically we expand the number of people. And there is a fear that we lose the focus and the dollars that could be targeted adequately to address different populations of homeless. One of the aspects of the bill--and Ms. Roman talked about it--is this notion of prevention money with some flexibility to perhaps go into these populations which are technically not in the definition of homelessness, but they would fall in the definition of people who could be homeless and, therefore, the prevention money could work. I wonder if you might comment in terms of those two sections together in terms of this issue of definition, and I will ask everybody because I think your insights will be valuable, particularly those who come from areas that are not big urban centers but have rural populations. Ms. Roman. Well, I appreciate the focus of the bill on outcomes, and I think we have heard here today that trying to achieve outcomes is important. So, you know, if we were to expand the population of people who are eligible for homeless assistance by somewhere between 4 and 15 times, which is essentially the size of the doubled-up--there is no definition of doubled-up so that is why the range is so large. But at the very least, we would have to multiply the amount of money that comes into homeless assistance by 4 to 15 times, and I think we would also have to relook at the eligible activities because-- focus more on rehousing. I think what you do with the prevention fund is really allow people the flexibility to address this on a case-by-case basis for people who really are on the brink. There are a lot of people who are doubled up, which has been the proposed change, who are very stably housed. You know, it may not be the best situation in the world, but they are stable in their housing. They are not about to become homeless. But there are a lot of people who are, and I think Ms. Glassman raised the issue of people who really are couch- surfing. I would call those people homeless as well, or people who are about to become homeless, and I think your pool allows, you know, a strategic use of funds to address that. We do not want to also pull people into the homeless system to get housing assistance and services. We want to help them stay where they are. Senator Reed. Well, one thing that we all understand, which is unstated, is that this is one aspect of an affordability crisis that transcends the whole housing market, and unfortunately, that crisis is working its way up the income ranks. But having said that, Ms. Glassman, your comments, too. And we will take note of your suggestions, which were very thoughtful. Ms. Glassman. Well, there are two things. For me, many of the people with whom I work are the same people--and I worked in L.A. and New York--who would qualify for the program because they went through emergency shelter, but because one simply does not exist, it is the same mentally ill person, it is the same person with chronic substance abuse, it is the same person with HIV. There just is not the entry place into the system. So for me, for that small population, I would like you to give other consideration. The other thing is I would like to get more clarity about that whole notion of medium-term housing in prevention, because it looks as if--we all know permanent housing is the solution. If the medium-term housing could last long enough until people could get into a Section 8 program or into some other, more stable housing, it would be very helpful. The problem is, as you well know, the wait to do that is very long. But it does not make sense to me to pay first and last month's rent for somebody who then is going to be homeless 2 months afterwards because there is no housing stability in the middle of that. So I would like to give some consideration to that. Senator Reed. Thank you. Mr. Loza, again, from your perspective--and also this is an opportunity--I will announce there is another vote that has been called, but this is another opportunity to make some comments for everyone that you had not yet expressed for the record. Mr. Loza. Mr. Loza. Thank you, Senator Reed. We appreciate the challenge of coming up with a definition that works. For a variety of reasons, getting all the different views together is difficult, and looking at resources also becomes difficult. I think Senator Menendez was right. This has to be seen as part of a much broader issue. We have affordability. We have the need for new production. We have the need for bettering substandard housing. And what I think you are trying to do with this reform with Senate bill 1518 is really to cover that part that maybe is part of a larger one as opposed to trying to deal with pieces of different parts. We are very grateful for a couple of things. One is that the recognition that rural areas need to be addressed differently is clearly evident in the bill, and we are very grateful about that. And the other thing is the openness of your office and of this Committee to really discuss, you know, how do we get to those points where we can come to agreement. And I think that is what it is going to take to sort of reach the point where not everyone will be satisfied, but at least everyone has an opportunity to offer important input. Senator Reed. Well, thank you, Mr. Loza. In that regard, thank you for helping us, all of you participating. Again, much of the credit goes to the staff, not to the principals, and I will once again thank them. One other point is that we are trying to work through this government-sponsored enterprise reform bill, and within that bill in the House, there is a housing trust fund component, for lack of a better term, which we hope can generate up to $500 to $800 million for the issue of production for affordable housing that will take the pressure off a little bit the crisis that many people face today. But thank you for those comments. Ms. Gundlach. Ms. Gundlach. Yes, Senator Reed. I want to, first of all, second what people have said about the real improvements we see in your bill and to express our appreciation. I think that the emphasis on rural issues, emphasis on prevention issues, are going to go a long way to alleviating some of our concerns. I will say that while I am cognizant of the concerns of dumping another 4 to 15 million people into the definition of homelessness, I do think it is exactly that process of identifying what the most critical need is that the whole continuum of care system was created to address. And, again, I go back to the issue of flexibility in local communities, that whether we have 100 or 500 homeless individuals in a community, if we can only serve 20, that local community has got to decide where the greatest priority is, and that is done through that continuum of care process. And so my biggest concern is not so much whether we define people who are doubled up broadly or narrowly. I think we do need some definition for couch-surfing certainly as being homeless. But I think that we really need the flexibility to those local communities to look at the broad array of homeless needs and homeless people in their community and decide what population needs the most targeting and what services need to be offered. And so I think that counting the people is not as big an issue as deciding what we do with them, and that is really the job of the local community. Senator Reed. Thank you. Mr. Pendleton, please. Mr. Pendleton. Yes. Eleven percent of the homeless people in Utah are in the rural area because they basically move to the Wasatch Front where it is very urban. With the changes in the flexibility and increase in the rural emphasis, it will give us the opportunity to work in the community where they live and prevent them from becoming homeless and moving to the Wasatch Front, to the urban area. So that will be very helpful for us because then they can stay in their community where they can get support from their family members. So that is where we see a great opportunity for us, is to deal with the homelessness or near-homelessness in the rural areas. So we think this is a good move. Senator Reed. Well, this has been very useful for us, and I will add all of you have, I think, been very active in contributing through your national organizations and personally to the preparation of this legislation, and it benefits dramatically from your input. I thank you for that. This is, as Allen Ludden once said, ``a toss-up question,'' and I think we are all old enough to remember Allen Ludden--at least the panelists. Any final comments? I have 4 or 5 minutes before I have to run out of here and go vote, but any final comments? Ms. Roman. Ms. Roman. Well, I would just say I just want to concur that despite the fact that homeless people do need services, it is a housing-driven problem. And so we appreciate the efforts of the Committee to address that. That ultimately is what is going to solve it moving ahead. And, again, just to thank you so much for your leadership on this issue. Senator Reed. Well, I think also Senator Allard has been a colleague and friend doing this, and we have switched off as Chair and Ranking Member and Chair and Ranking Member seamlessly. So it is truly a joint effort. I know your commendation is to him also, and I would join you in doing that. Thank you all very much. We will keep the record open for about a week or so, 7 days. You might receive requests for written responses. I would hope you would respond as promptly as possible. Thank you again, and there being no further business, the hearing is adjourned. [Whereupon, at 12:59 p.m., the hearing was adjourned.] [Prepared statements, responses to written questions, and additional material supplied for the record follow:] [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT] RESPONSE TO WRITTEN QUESTIONS OF SENATOR CRAPO FROM ROY A. BERNARDI Q.1. How does S. 1518 and the Administration's proposal guarantee that federal dollars will not be disproportionately allocated to larger urban areas where organizational capacity offers a significant competitive advantage over rural communities? For such a critical resource in our state, how is Idaho's current funding level protected against future erosion under the competitive allocation process? A.1. In 2006, the State of Idaho received 99% of the funds applied for in the Continuum of Care (CoC) funding competition. The Idaho Balance of State, which represents the entire state other than Boise, scored 92.5 out of 100 possible points and had all of its projects funded. With a top national score of 95 points, the Idaho Balance of State showed that a rural CoC can be a very strong performer in the funding competition. Reed/Allard Bill, S. 1518, Community Partnership to End Homelessness Act of 2007 A significant aspect of the Reed bill is the establishment of a separate program for rural communities that would take them out of direct competition with well established urban CoCs while retaining their respective pro-rata need. At Section 404(a), the Reed bill provides rural CoCs the ability to receive technical assistance for private non-profit organizations and other nongovernmental entities, States, metropolitan cities, urban counties, and counties that are not urban counties that are potential project sponsors, in order to implement effective planning processes for preventing and ending homelessness, to optimize self-sufficiency among homeless individuals and to improve their capacity to become project sponsors. This assistance will enhance the ability of rural CoCs to compete in the area of organizational capacity amongst other rural CoCs if they choose to apply under the Rural Housing Stability Assistance Program, or with any other CoC if they choose to apply under the Community Homeless Assistance Program. Administration Bill, Homeless Assistance Consolidation Act of 2007 The Administration's bill at Section 423(a)(8) adds technical assistance as a new eligible activity which will allow a CoC board to obtain training designed to increase its capacity to perform its function under the subtitle, including evidence-based practices. Like the Reed bill, this enhancement to the current list of eligible activities will benefit communities, including those in rural areas, which currently lack the organizational capacity to be competitive in the funding competition. To accommodate communities that still have difficulty obtaining funds competitively, the Administration intends to continue the current policy of establishing a CoC's baseline of funding at the higher of the pro-rata need or their total 1-year renewal amount. This would continue to ensure that lower-scoring renewal requests receive funding for at least 1 year. ------ RESPONSE TO WRITTEN QUESTIONS OF SENATOR DODD FROM LLOYD S. PENDLETON Q.1. How well do we believe the CDBG measures either the incidence or severity of homelessness across communities? A.1. In comparing the present CDBG formulas for states (population at either 20 or 25%, poverty at either 30 or 50%, pre-1940 housing at 50% or Overcrowding at 25%) with the point- in-time counts and the HMIS reported homeless, we see no significant relationship in the incidence or severity of homelessness. Even though the point-in-time counts are improving, especially with the recently implemented HMIS, the numbers are still soft and would create challenges in allocating funding for the homeless. Q.2. Briefly comment on whether Congress should be setting up set-asides for specific homeless populations or whether local communities should be free to determine their own needs and priorities? A.2. Because of the significant difference in Utah with a fairly urban area where 80% of the State's 2.6 million population live along the Wasatch Front (a 100 mile strip 5 to 15 miles wide) and the vast rural areas, basically, we believe the local communities should be allowed to determine and prioritize their needs. However, there may be one or two significant homeless programs, such as ``housing first'' for the chronically homeless, that would benefit from a set aside. ------ RESPONSE TO WRITTEN QUESTIONS OF SENATOR DODD FROM LINDA GLASSMAN Q.1. HUD uses the Community Development Block Grant (DCBG) formula to determine the allocation of its competitive homelessness assistance grant. As we are all aware, there is no basis in either statute or regulation for using the CDBG grant formula in this manner. I would like you to comment on how well you believe the CDBG measures either the incidence or severity of homelessness among communities? A.1. Until the Homelessness Management Information System (HMIS) becomes fully operational in communities nationwide, the Community Development Block Grant formula is the best available proxy for determining the incidence and severeity of homelessness. Q.2. One thing, I believe that we have heard from many of today's witnesses, is that the nature of homelessness differs greatly by community. I want to ask if you can briefly comment on whether Congress should be setting up set-aside for specific homeless populations or whether local communities should be free to determine their own needs and priorities. A.2. In order to address homelessness nationwide, research indicates that some emphasis on ``chronic'' homelessness is warranted. S. 1518 is crafted with considerable latitude to focus on other homeless populations, especially after the demonstrated needs of chronically homeless people have been met. In addition, the legislation allows rural areas to identify and address their specific needs. [GRAPHIC(S) NOT AVAILABLE IN TIFF FORMAT]