Sec. 505. Reducing Homelessness Through Program Reform Act
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In this section: The term appropriate congressional committees means— the Committee on Banking, Housing, and Urban Affairs of the Senate; and the Committee on Financial Services of the House of Representatives. The term at risk of homelessness has the meaning given the term in section 401 of the McKinney-Vento Homeless Assistance Act ( 42 U.S.C. 11360 ). The term Department means the Department of Housing and Urban Development. The term homeless has the meaning given the term in section 103 of the McKinney-Vento Homeless Assistance Act ( 42 U.S.C. 11302 ).
The term public housing agency has the meaning given the term in section 3(b) of the United States Housing Act of 1937 ( 42 U.S.C. 1437a(b) ). The term Secretary , except as otherwise provided, means the Secretary of Housing and Urban Development. Section 418 of the McKinney-Vento Homeless Assistance Act ( 42 U.S.C. 11378 ) is amended by striking 7.5 percent and inserting 10 percent . Subtitle C of title IV of the McKinney-Vento Homeless Assistance Act ( 42 U.S.C. 11381 et seq. ) is amended— in section 402(g) ( 42 U.S.C. 11360a(g) )— by redesignating paragraph
(2)as paragraph (3); and by inserting after paragraph
(1)the following: The Secretary— shall accept applications for designation as a unified funding agency annually or biennially, which designation shall be effective for not more than 2 years; and may, on an annual or biennial basis, renew any designation under subparagraph (A). ; in section 422 ( 42 U.S.C. 11382 )— in subsection (b)— by striking The Secretary and inserting the following: Except as provided in paragraph (2), the Secretary ; and by adding at the end the following: Subject to the availability of appropriations, the Secretary may issue a notification of funding availability for grants awarded under this subtitle that provides funding for 2 successive fiscal years, which shall— award funds for the second year of projects, including adjustments under subsection (f), unless the project is underperforming, as determined by the collaborative applicant, and the collaborative applicant applies to replace the project with a new project; and include— the method for applying for and awarding projects to replace underperforming projects in year 2; the method for applying for and awarding renewals of expiring grants for projects that were not eligible for renewal in the first fiscal year; the method for allocating any amounts in the second fiscal year that are in excess of the amount needed to fund the second fiscal year of all grants awarded in the first fiscal year; the method of applying for and awarding grants, which are 1-year transition grants awarded by the Secretary to project sponsors for activities under this subtitle to transition from 1 eligible activity to another eligible activity if the recipient— has the consent of the continuum of care; and meets standards determined by the Secretary; announce by notice the award of second fiscal year funding and awards for new and renewal projects; and identify the process by which the Secretary may approve replacement of a collaborative applicant that is not a unified funding agency to receive the award in the second fiscal year. ; in subsection (c)(2)— by striking
(A)and inserting In general .—Except as provided in subparagraph (B), the Secretary The Secretary ; and by striking subparagraph (B); and in subsection (e), by striking 1 year and inserting 2 years ; in section 423(a) ( 42 U.S.C. 11383 )— in paragraph (4), in the third sentence— by striking , at the discretion of the applicant and the project sponsor, ; and by inserting not more than before 15 years ; in paragraph (7), in the matter preceding subparagraph (A), by inserting payment of not more than 6 months of arrears for rent and utility expenses, after moving costs, ; and in paragraph (10), by striking 3 percent and inserting the greater of either $70,000 or 5 percent ; in section 425 ( 42 U.S.C. 11385 ), by adding at the end the following: Not later than 1 year after the date of enactment of this subsection, and on a biennial basis thereafter, the Comptroller General of the United States— shall study the hiring, retention, and compensation levels of the workforce providing the services described in subsection (c), including executive directors, case managers, and frontline staff, and examine whether low compensation is undermining program effectiveness; shall submit to the appropriate congressional committees a report on any findings, and to the Secretary any recommendations, as the Comptroller General considers appropriate regarding funding levels for the cost of the supportive services and the staffing to provide the services described in subsection (c); and in carrying out the study under paragraph (1), may reference the Consumer Price Index or other similar surveys. ; in section 426 ( 42 U.S.C. 11386 ), by adding at the end the following: When complying with inspection requirements for a housing unit provided to a homeless individual or family using assistance under this subtitle, the Secretary may allow a grantee to— conduct a pre-inspection not more than 60 days before leasing the unit; if the unit is located in a rural or small area, conduct a remote or video inspection of a unit; and allow the unit to be leased prior to completion of an inspection if the unit passed an alternative Federal inspection within the preceding 12-month period, so long as the unit is inspected not later than 15 days after the start of the lease. ; and in section 430 ( 42 U.S.C. 11386d ), by adding at the end the following: With respect to grant amounts awarded under this subtitle, costs paid by the program income of a grant recipient may count toward the contributions required under subsection
(a)if the costs— are eligible expenses under this subtitle; meet standards determined by the Secretary; and supplement activities carried out by the recipient under this subtitle. . In this paragraph— the terms collaborative applicant and eligible entity have the meanings given those terms in section 401 of the McKinney-Vento Homeless Assistance Act ( 42 U.S.C. 11360 ); and the terms Indian tribe and tribally designated housing entity have the meanings given those terms in section 4 of the Native American Housing Assistance and Self-Determination Act of 1996 ( 25 U.S.C. 4103 ). With respect to the funds made available for the Continuum of Care program authorized under subtitle C of title IV of the McKinney-Vento Homeless Assistance Act ( 42 U.S.C. 11381 et seq. ) under the heading Homeless Assistance Grants in the Department of Housing and Urban Development Appropriations Act, 2021 ( Public Law 116–260 ) and under section 231 of the Department of Housing and Urban Development Appropriations Act, 2020 ( 42 U.S.C. 11364a ), title VI of the Civil Rights Act of 1964 ( 42 U.S.C. 2000d et seq. ) and title VIII of the Civil Rights Act of 1968 ( 42 U.S.C. 3601 et seq. ) shall not apply to applications by or awards for projects to be carried out— on or off reservation or trust lands for awards made to Indian tribes or tribally designated housing entities; or on reservation or trust lands for awards made to eligible entities. With respect to funds made available for the Continuum of Care program authorized under subtitle C of title IV of the McKinney-Vento Homeless Assistance Act ( 42 U.S.C. 11381 et seq. ) under the heading Homeless Assistance Grants under section 231 of the Department of Housing and Urban Development Appropriations Act, 2020 ( 42 U.S.C. 11364a )— applications for projects to be carried out on reservations or trust land shall contain a certification of consistency with an approved Indian housing plan developed under section 102 of the Native American Housing Assistance and Self-Determination Act ( 25 U.S.C. 4112 ), notwithstanding section 106 of the Cranston-Gonzalez National Affordable Housing Act ( 42 U.S.C. 12706 ) and section 403 of the McKinney-Vento Homeless Assistance Act ( 42 U.S.C. 11361 ); Indian tribes and tribally designated housing entities that are recipients of awards for projects on reservations or trust land shall certify that they are following an approved housing plan developed under section 102 of the Native American Housing Assistance and Self-Determination Act ( 25 U.S.C. 4112 ); and a collaborative applicant for a Continuum of Care whose geographic area includes only reservation and trust land is not required to meet the requirement in section 402(f)(2) of the McKinney-Vento Homeless Assistance Act ( 42 U.S.C. 11360a(f)(2) ). Section 8(o)(5) of the United States Housing Act of 1937 ( 42 U.S.C. 1437f(o)(5) ) is amended by adding at the end the following: Notwithstanding subparagraph (A)— a public housing agency may accept a third party income calculation and verification of family income for purposes of this subsection if— the calculation and verification was completed for determination of income eligibility for a Federal program or service during the preceding 12-month period; and there has been no change in income or family composition since the calculation and verification under clause (i); and when using prior year income under section 3(a)(7)(B), a public housing agency shall use the income of the family as determined by the agency or owner for the prior calendar year or another 12-month period ending during the preceding 12 months, taking into consideration any redetermination of income between the start of such prior calendar year or other 12-month period and the date of the annual review. ; Not later than 180 days after the date of enactment of this Act, the Secretary of Health and Human Services and the Secretary shall seek to enter into an agreement with the National Academies of Sciences, Engineering, and Medicine to conduct and submit to the appropriate congressional committees an evidence-based, nonpartisan analysis that— reviews the research on linkages between access to affordable health care and homelessness and analyzes the effect of greater coordination and partnerships between health care organizations, mental health and substance use disorder and substance use disorder service providers, and housing service providers, including possible cost-savings from providing greater access to health services, recovery housing, or housing-related supportive services for individuals experiencing chronic homelessness and other types of homelessness; and includes policy and program recommendations for improving access to health care and housing, health care and housing outcomes, possible cost-savings and efficiencies, and best practices. Subtitle A of title IV of the McKinney-Vento Homeless Assistance Act ( 42 U.S.C. 11360 et seq. ) is amended by adding at the end the following: In this section: The term appropriate congressional committees means— the Committee on Banking, Housing, and Urban Affairs of the Senate; and the Committee on Financial Services of the House of Representatives. The term health care organization means an entity providing medical or mental and behavioral health care, including— a hospital (as defined in section 1861(e) of the Social Security Act ( 42 U.S.C. 1395x(e) )); a Federally-qualified health center (as defined in section 1905(l)(2) of the Social Security Act ( 42 U.S.C. 1396d(l)(2) )) or another community health center eligible to receive a grant under section 330 of the Public Health Service Act ( 42 U.S.C. 254b ); and a licensed or certified provider of evidence-based substance use disorder services or mental health services providing such services pursuant to funding under a block grant for substance use prevention, treatment, and recovery services or a block grant for community mental health services under subpart II or subpart I, respectively, of part B of title XIX of the Public Health Service Act ( 42 U.S.C. 300x et seq. ). The term housing provider means an entity, including a grant recipient under subtitle B or C of this title, a public housing agency (as defined in section 3 of the United States Housing Act of 1937 ( 42 U.S.C. 1437a )), or a federally funded organization or a nonprofit organization, that administers a program to provide housing services to individuals experiencing or at risk of homelessness, including rapid re-housing, transitional housing, housing choice vouchers, and housing-related supportive services. The Secretary may establish demonstration projects or partnerships that involve collaboration between housing providers and healthcare organizations to provide housing-related supportive services, including— assistance in coordinating data systems in a manner that is compliant with the Health Insurance Portability and Accountability Act ( Public Law 104–191 ); and projects or partnerships that are aimed at serving individuals— who are homeless, chronically homeless, or at risk of homelessness; and with— a high-use of emergency services or emergency departments; chronic disabilities, including physical health or mental health conditions; substance use disorders; serious mental illness; or other severe service needs. Not later than 2 years after the date of enactment of this Act, and every 4 years thereafter, the Secretary shall submit to the appropriate congressional committees a report on each demonstration project or partnership established under this section. . The table of contents in section 101(b) of the McKinney-Vento Homeless Assistance Act ( 42 U.S.C. 11301 note) is amended by inserting after the item relating to section 408 the following: Sec. 409. Demonstration authority. . Not later than 1 year after the date of enactment of this Act, the Comptroller General of the United States shall— conduct a multi-community evaluation of the operations of coordinated assessment systems by the Continuum of Care Program under subtitle C of title IV of the McKinney-Vento Homeless Assistance Act ( 42 U.S.C. 11381 et seq. ) program to examine the efficiency, accuracy, and outcomes of those operations; and submit to the appropriate congressional committees on any findings and to the Secretary on any recommendations, as the Comptroller General considers appropriate, for a more effective and efficient coordinated entry process. Not later than 2 years after the date of enactment of this Act, the Secretary shall— evaluate the coordinated assessment processes under the Continuum of Care Program under subtitle C of title IV of the McKinney-Vento Homeless Assistance Act ( 42 U.S.C. 11381 et seq. ), which shall include— a request for information from continuums of care about coordinated entry tools, processes, barriers, documentation barriers, and necessary guidance; incorporation of findings from relevant reports and demonstrations of the Department, including the report described in paragraph (1); and consultation with organizations with expertise in providing health care to people experiencing homelessness on best practices in assessment tools for prioritizing resources and characterizing chronic homelessness and people experiencing homelessness with high-service needs; issue an updated notice, which shall include guidance— on effective assessment processes that remove barriers, streamline access, allow for coordination with public housing agencies, include trauma-informed data collection practices, improve accuracy, address needs for underserved groups, and successfully rehouse homeless individuals; that includes all key populations and subpopulations, including consideration for age, family status, health status, or other factors, access points, prioritization, and programs and systems serving individuals experiencing homelessness; and that allows for local flexibility and tailoring based on the needs and resources within the specific community; and establish a timely, periodic procedure to request feedback on coordinated assessment and update the guidance, which may include conducting a request for information not less frequently than once every 5 years. The Secretary shall— issue not less than 1 request for information on— improving data collection, including through the use of the Homeless Management Information System or other data systems; coordination and use of data between housing and homelessness providers and physical, mental, and behavioral health organizations, substance use treatment providers, and the Department of Veterans Affairs for implementation of programs to provide services for people experiencing or at risk of homelessness, including the chronically homeless; and the potential benefits and risks of using artificial intelligence models for the purpose of improving program coordination and effectiveness and assessing the effectiveness of interventions to house individuals experiencing or at risk of homelessness, including by sub-populations; consider providing incentives to improve data collection, enhance the use of the Homeless Management Information System, implement community information exchanges, and strengthen the coordination of data from physical, mental, and behavioral health organizations with housing and homelessness providers, in order to target resources for housing, outreach, homelessness prevention, and housing-related supportive services for homeless individuals, or chronically homeless individuals; and coordinate with the Secretary of the Department of Veterans Affairs to improve coordination between data systems for vouchers provided under section 8(o)(19) of the United States Housing Act of 1937 ( 42 U.S.C. 1437f(o)(19) ), the Homeless Management Information System, and any other applicable homeless program supported by the Department of Veterans Affairs. Nothing in this section or the amendments made by this section shall be construed to limit the authority of the Secretary to provide flexibility under housing laws in effect as of the date of enactment of this Act. The flexibilities and waivers authorized under this section and the amendments made by this section shall not replace or result in the termination of other flexibilities and waivers that the Secretary is authorized to exercise.