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116th Congress    }                                  {    Rept. 116-137
                        HOUSE OF REPRESENTATIVES
 1st Session      }                                  {           Part 1

======================================================================



 
                    ENDING HOMELESSNESS ACT OF 2019

                                _______
                                

 July  5, 2019.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

   Ms. Maxine Waters of California, from the Committee on Financial 
                   Services, submitted the following

                              R E P O R T

                             together with

                             MINORITY VIEWS

                        [To accompany H.R. 1856]

      [Including cost estimate of the Congressional Budget Office]

    The Committee on Financial Services, to whom was referred 
the bill (H.R. 1856) to provide a path to end homelessness in 
the United States, and for other purposes, having considered 
the same, report favorably thereon with an amendment and 
recommend that the bill as amended do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     7
Background and Need for Legislation..............................     7
Section-by-Section Analysis......................................    10
Hearings.........................................................    13
Committee Consideration..........................................    13
Committee Votes..................................................    13
Statement of Oversight Findings and Recommendations of the 
  Committee......................................................    21
Statement of Performance Goals and Objectives....................    21
New Budget Authority and CBO Cost Estimate.......................    21
Committee Cost Estimate..........................................    27
Unfunded Mandate Statement.......................................    27
Advisory Committee...............................................    28
Committee Correspondence.........................................    29
Application of Law to the Legislative Branch.....................    32
Earmark Statement................................................    32
Duplication of Federal Programs..................................    32
Changes to Existing Law..........................................    32

    The amendment is as follows:
  Strike all after the enacting clause and insert the 
following:

SECTION 1. SHORT TITLE.

  This Act may be cited as the ``Ending Homelessness Act of 2019''.

SEC. 2. CONGRESSIONAL FINDINGS.

  The Congress finds that--
          (1) although the United States has experienced a reduction in 
        veteran homelessness after a surge of new Federal funding 
        targeted to homeless veterans starting in fiscal year 2008, 
        major progress towards the national goals for ending 
        homelessness in our Nation has virtually stalled in the absence 
        of increased funding;
          (2) according to the Department of Housing and Urban 
        Development's 2018 point-in-time count, there were 552,830 
        people experiencing homelessness in the United States on any 
        given night, including nearly 160,000 children and youth;
          (3) homelessness in many communities has reached crisis 
        proportions and some cities have declared that homelessness has 
        reached a state of emergency; and
          (4) the Federal Government must renew its commitment to the 
        national goals to end homelessness.

SEC. 3. FUNDING TO ADDRESS UNMET NEEDS.

  Title IV of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
11360 et seq) is amended--
          (1) by redesignating section 491 (42 U.S.C. 11408; relating 
        to rural housing stability grant program) as section 441;
          (2) by redesignating section 592 (42 U.S.C. 11408a; relating 
        to use of FMHA inventory for transitional housing for homeless 
        persons and for turnkey housing) as section 442; and
          (3) by adding at the end the following new subtitle:

             ``Subtitle E--5-Year Path to End Homelessness

``SEC. 451. FUNDING TO ADDRESS UNMET NEEDS.

  ``(a) Direct Appropriations.--There is appropriated out of any money 
in the Treasury not otherwise appropriated for each of fiscal years 
2020 through 2024, $1,000,000,000, to remain available until expended, 
for emergency relief grants under this section to address the unmet 
needs of homeless populations in jurisdictions with the highest need.
  ``(b) Formula Grants.--
          ``(1) Allocation.--Amounts appropriated under subsection (a) 
        for a fiscal year shall be allocated among collaborative 
        applicants that comply with section 402, in accordance with the 
        funding formula established under paragraph (2) of this 
        subsection.
          ``(2) Formula.--The Secretary shall, in consultation with the 
        United States Interagency Council on Homeless, establish a 
        formula for allocating grant amounts under this section to 
        address the unmet needs of homeless populations in 
        jurisdictions with the highest need, using the best currently 
        available data that targets need based on key structural 
        determinants of homelessness in the geographic area represented 
        by a collaborative applicant, which shall include data 
        providing accurate counts of--
                  ``(A) the poverty rate in the geographic area 
                represented by the collaborative applicant;
                  ``(B) shortages of affordable housing for low-, very 
                low-, and extremely low-income households in the 
                geographic area represented by the collaborative 
                applicant;
                  ``(C) the number of overcrowded housing units in the 
                geographic area represented by the collaborative 
                applicant;
                  ``(D) the number of unsheltered homeless individuals 
                and the number of chronically homeless individuals; and
                  ``(E) any other factors that the Secretary considers 
                appropriate.
         The formula shall provide priority to collaborative applicants 
        for which the local governments, within the area served by the 
        applicant, have adopted local policies, such as through zoning 
        and regulation, that leverage the private sector's 
        participation to provide housing that is reserved and 
        affordable to low-, very low-, and extremely low-income 
        households, as defined by the Secretary, for a minimum term of 
        15 years. The Secretary shall establish by regulation the 
        process and manner that local governments will be evaluated. 
        The Secretary shall ensure that local governments are not 
        incentivized or otherwise rewarded for eliminating or 
        undermining the intent of zoning regulations or other 
        regulations or policies that establish fair wages for laborers, 
        ensure health and safety of buildings for residents and the 
        general public, protect fair housing, establish environmental 
        protections, establish standards for resiliency, prevent tenant 
        displacement, or any other requirements that the Secretary 
        determines it is in the public interest to preserve.
          ``(3) Grants.--For each fiscal year for which amounts are 
        made available under subsection (a), the Secretary shall make a 
        grant to each collaborative applicant for which an amount is 
        allocated pursuant to application of the formula established 
        pursuant to paragraph (2) of this subsection in an amount that 
        is equal to the formula amount determined for such 
        collaborative applicant.
          ``(4) Timing.--The funding formula required under paragraph 
        (2) shall be established by regulations issued, after notice 
        and opportunity for public comment, not later than 6 months 
        after the date of enactment of this section.
  ``(c) Use of Grants.--
          ``(1) In general.--Subject to paragraphs (2) through (4), a 
        collaborative applicant that receives a grant under this 
        section may use such grant amounts only for eligible activities 
        under section 415, 423, or 441(b).
          ``(2) Permanent supportive housing requirement.--
                  ``(A) Requirement.--Except as provided in 
                subparagraph (B), each collaborative applicant that 
                receives a grant under this section shall use not less 
                than 75 percent of such grant amount for permanent 
                supportive housing, including capital costs, rental 
                subsidies, and services.
                  ``(B) Exemption.--The Secretary shall exempt a 
                collaborative applicant from the applicability of the 
                requirement under subparagraph (A) if the applicant 
                demonstrates, in accordance with such standards and 
                procedures as the Secretary shall establish, that--
                          ``(i) chronic homelessness has been 
                        functionally eliminated in the geographic area 
                        served by the applicant; or
                          ``(ii) the permanent supportive housing under 
                        development in the geographic area served by 
                        the applicant is sufficient to functionally 
                        eliminate chronic homelessness once such units 
                        are available for occupancy.
                The Secretary shall consider and make a determination 
                regarding each request for an exemption under this 
                subparagraph not later than 60 days after receipt of 
                such request.
          ``(3) Limitation on use for administrative expenses.--Not 
        more than 5 percent of the total amount of any grant under this 
        section to a collaborative applicant may be used for costs of 
        administration.
          ``(4) Housing first requirement.--The Secretary shall ensure 
        that each collaborative applicant that receives a grant under 
        this section is implementing, to the extent possible, and will 
        use such grant amounts in accordance with, a Housing First 
        model for assistance for homeless persons.
  ``(d) Renewal Funding.--Expiring contracts for leasing, rental 
assistance, or permanent housing shall be treated, for purposes of 
section 429, as expiring contracts referred to in subsection (a) of 
such section.
  ``(e) Reporting to Congress.--
          ``(1) Annual reports.--Not later than the expiration of the 
        12-month period beginning upon the first allocation of amounts 
        made after the date of the enactment of this Act pursuant to 
        subsection (b)(1), and annually thereafter, the Secretary and 
        the United States Interagency Council on Homelessness shall 
        submit a report to the Committees on Financial Services and 
        Appropriations of the House of Representatives and the 
        Committees on Banking, Housing, and Urban Affairs and 
        Appropriations of the Senate providing detailed information 
        regarding the grants made under this section during the 
        preceding year, the activities funded with such grant amounts, 
        and the impact of such activities on the communities where such 
        activities took place.
          ``(2) Collection of information by secretary.--The Secretary 
        shall require each collaborative applicant that receives a 
        grant under this section to submit such information to the 
        Secretary as may be necessary for the Secretary to comply with 
        the reporting requirement under paragraph (1).

``SEC. 452. SPECIAL PURPOSE VOUCHERS.

  ``(a) Direct Appropriation.--There is appropriated out of any money 
in the Treasury not otherwise appropriated for each of fiscal years 
2020 through 2024, $500,000,000, to remain available until expended, 
which shall be used as follows:
          ``(1) Rental assistance.--Except as provided in paragraph 
        (2), such amount shall be used for incremental assistance for 
        rental assistance under section 8(o) of the United States 
        Housing Act of 1937 (42 U.S.C. 1437f(o)) for persons and 
        households who are homeless (as such term is defined in section 
        103 (42 U.S.C. 11302)), which assistance shall be in addition 
        to such assistance provided pursuant to renewal of expiring 
        contracts for such assistance.
          ``(2) Administrative fees.--The Secretary may use not more 
        than 10 percent of such amounts provided for each fiscal year 
        for administrative fees under 8(q) of the United States Housing 
        Act of 1937 (42 U.S.C. 1437f(q)). The Secretary shall establish 
        policies and procedures to provide such fees to the extent 
        necessary to assist homeless persons and families on whose 
        behalf rental assistance is provided to find and maintain 
        suitable housing.
  ``(b) Allocation.--The Secretary shall make assistance provided under 
this section available to public housing agencies based on geographical 
need for such assistance by homeless persons and households, as 
identified by the Secretary, public housing agency administrative 
performance, and other factors as specified by the Secretary. In 
allocating assistance among public housing agencies, the Secretary 
shall provide priority to agencies having jurisdictions in which the 
local governments within such jurisdictions have adopted local 
policies, such as through zoning and regulation, that leverage the 
private sector's participation to provide housing that is reserved and 
affordable to low-, very low-, and extremely low-income households, as 
determined by the Secretary, for a minimum term of 15 years. The 
Secretary shall establish by regulation the process and manner that 
local governments will be evaluated. The Secretary shall ensure that 
local governments are not incentivized or otherwise rewarded for 
eliminating or undermining the intent of zoning regulations or other 
regulations or policies that establish fair wages for laborers, ensure 
health and safety of buildings for residents and the general public, 
protect fair housing, establish environmental protections, establish 
standards for resiliency, prevent tenant displacement, or any other 
requirements that the Secretary determines it is in the public interest 
to preserve.
  ``(c) Availability.--Assistance made available under this section 
shall continue to remain available only for homeless persons and 
households upon turn-over.
  ``(d) Renewal Funding.--Renewal of expiring contracts for rental 
assistance provided under subsection (a) and for administrative fees 
under such subsection shall, to the extent provided in appropriation 
Acts, be funded under the section 8 tenant-based rental assistance 
account.
  ``(e) Waiver Authority.--Upon a finding by the Secretary that a 
waiver or alternative requirement pursuant to this subsection is 
necessary to ensure that homeless persons and households can obtain 
housing using rental assistance made available under this section, the 
Secretary may waive, or specify alternative requirements for, any 
provision of any statute or regulation that the Secretary administers 
in connection with the use of funds made available under this section 
(except for requirements related to fair housing, nondiscrimination, 
labor standards, and the environment) that relates to screening of 
applicants for assistance, admission of applicants, and selection of 
tenants. The Secretary shall require public housing agencies receiving 
rental assistance funding made available under this section to take all 
reasonable actions to help assisted persons and families avoid 
subsequent homelessness.

``SEC. 453. OUTREACH FUNDING.

  ``(a) Direct Appropriation.--There is appropriated out of any money 
in the Treasury not otherwise appropriated for each of fiscal years 
2020 through 2024, $100,000,000, to remain available until expended, to 
the Secretary for grants under this section to provide outreach and 
coordinate services for persons and households who are homeless or 
formerly homeless.
  ``(b) Grants.--
          ``(1) In general.--The Secretary shall make grants under this 
        section on a competitive basis only to collaborative applicants 
        who comply with section 402.
          ``(2) Priority.--The competition for grants under this 
        section shall provide priority--
                  ``(A) to collaborative applicants who submit plans to 
                make innovative and effective use of staff funded with 
                grant amounts pursuant to subsection (c); and
                  ``(B) to collaborative applicants for which the local 
                governments, within the area served by the applicant, 
                have adopted local policies, such as through zoning and 
                regulation, that leverage the private sector's 
                participation to provide housing that is reserved and 
                affordable to low-, very low-, and extremely low-income 
                households, as defined by Secretary, for a minimum term 
                of 15 years. The Secretary shall establish by 
                regulation the process and manner that local 
                governments will be evaluated. The Secretary shall 
                ensure that local governments are not incentivized or 
                otherwise rewarded for eliminating or undermining the 
                intent of zoning regulations or other regulations or 
                policies that establish fair wages for laborers, ensure 
                health and safety of buildings for residents and the 
                general public, protect fair housing, establish 
                environmental protections, establish standards for 
                resiliency, prevent tenant displacement, or any other 
                requirements that the Secretary determines it is in the 
                public interest to preserve.
  ``(c) Use of Grants.--A collaborative applicant that receives a grant 
under this section may use such grant amounts only for providing case 
managers, social workers, or other staff who conduct outreach and 
coordinate services for persons and households who are homeless or 
formerly homeless.
  ``(d) Timing.--The Secretary shall establish the criteria for the 
competition for grants under this section required under subsection (b) 
by regulations issued, after notice and opportunity for public comment, 
not later than 6 months after the date of enactment of this section.''.

SEC. 4. HOUSING TRUST FUND.

  (a) Funding.--
          (1) Annual funding.--There is appropriated, out of any money 
        in the Treasury not otherwise appropriated, for each of fiscal 
        years 2020 through 2024, $1,000,000,000, to remain available 
        until expended, which shall be credited to the Housing Trust 
        Fund established pursuant to section 1338 of the Federal 
        Housing Enterprises Financial Safety and Soundness Act of 1992 
        (12 U.S.C. 4568) for use under such section.
          (2) Rental assistance.--There is appropriated, out of any 
        money in the Treasury not otherwise appropriated, for each of 
        fiscal years 2020 through 2024, $50,000,000, to remain 
        available until expended, for incremental project-based voucher 
        assistance or project-based rental assistance, to be allocated 
        to States pursuant to the formula established under section 
        1338 of the Federal Housing Enterprises Financial Safety and 
        Soundness Act of 1992 (12 U.S.C. 4568), to be used solely in 
        conjunction with grant funds awarded under such section 1338.
          (3) Priority for housing the homeless.--
                  (A) Priority.--During the first 5 fiscal years that 
                amounts are made available under this subsection, the 
                Secretary of Housing and Urban Development shall ensure 
                that priority for occupancy in dwelling units described 
                in subparagraph (B) that become available for occupancy 
                shall be given to persons and households who are 
                homeless (as such term is defined in section 103 of the 
                McKinney-Vento Homeless Assistance Act (42 U.S.C. 
                11302)).
                  (B) Covered dwelling units.--A dwelling unit 
                described in this subparagraph is any dwelling unit 
                that--
                          (i) is located in housing that was at any 
                        time provided assistance with any amounts from 
                        the Housing Trust Fund referred to paragraph 
                        (1) that were credited to such Trust Fund by 
                        such paragraph; or
                          (ii) is receiving assistance described in 
                        paragraph (2) with amounts made available under 
                        such paragraph.
  (b) Tenant Rent Contribution.--
          (1) Limitation.--Subparagraph (A) of section 1338(c)(7) of 
        the Federal Housing Enterprises Financial Safety and Soundness 
        Act of 1992 (12 U.S.C. 4568(c)(7)(A)) is amended--
                  (A) by striking ``except that not less than 75 
                percent'' and inserting the following: ``except that--
                          ``(i) not less than 75 percent'';
                  (B) by adding at the end the following new clause:
                          ``(ii) notwithstanding any other provision of 
                        law, all rental housing dwelling units shall be 
                        subject to legally binding commitments that 
                        ensure that the contribution toward rent by a 
                        family residing in the dwelling unit shall not 
                        exceed 30 percent of the adjusted income (as 
                        such term is defined in section 3(b) of the 
                        United States Housing Act of 1937 (42 U.S.C. 
                        1437a(b))) of such family; and''.
          (2) Regulations.--The Secretary of Housing and Urban 
        Development shall issue regulations to implement section 
        1338(c)(7)(A)(ii) of the Federal Housing Enterprises Financial 
        Safety and Soundness Act of 1992, as added by the amendment 
        made by paragraph (1)(B) of this section, not later than the 
        expiration of the 90-day period beginning on the date of the 
        enactment of this Act.

SEC. 5. TECHNICAL ASSISTANCE FUNDS TO HELP STATES AND LOCAL 
                    ORGANIZATIONS ALIGN HEALTH AND HOUSING SYSTEMS.

  (a) Funding.--There is hereby made available to the Secretary of 
Housing and Urban Development $20,000,000, to remain available until 
expended, for providing technical assistance under section 405 of the 
McKinney-Vento Homeless Assistance Act (42 U.S.C. 11361(b)) to 
integrate and coordinate assistance provided under the McKinney-Vento 
Homeless Assistance Act (42 U.S.C. 11301 et seq.) with health care 
funded by Federal programs, in collaboration with the United States 
Interagency Council on Homelessness and the Secretary of Health and 
Human Services.
  (b) Use.--In allocating amounts made available by subsection (a), the 
Secretary shall seek to--
          (1) assist States and localities in integrating and aligning 
        policies and funding between Medicaid programs, behavioral 
        health providers, and housing providers to create supportive 
        housing opportunities; and
          (2) engage State Medicaid program directors, Governors, State 
        housing and homelessness agencies, any other relevant State 
        offices, and any relevant local government entities, to assist 
        States in increasing use of their Medicaid programs to finance 
        supportive services for homeless persons.
  (c) Priority.--In using amounts made available under this section, 
the Secretary shall give priority--
          (1) to use for States and localities having the highest 
        numbers of chronically homeless persons; and
          (2) to assist localities that have adopted local policies, 
        such as through zoning and regulation, that leverage the 
        private sector's participation to provide and make housing 
        affordable for low-, very low-, and extremely low-income 
        household, as defined by the Secretary, for a minimum of 15 
        years. The Secretary shall establish by regulation the process 
        and manner that local governments will be evaluated. The 
        Secretary shall ensure that local governments are not 
        incentivized or otherwise rewarded for eliminating or 
        undermining the intent of zoning regulations or other 
        regulations or policies that establish fair wages for laborers, 
        ensure health and safety of buildings for residents and the 
        general public, protect fair housing, establish environmental 
        protections, establish standards for resiliency, prevent tenant 
        displacement, or any other requirements that the Secretary 
        determines it is in the public interest to preserve.

SEC. 6. PERMANENT AUTHORIZATION OF APPROPRIATIONS FOR MCKINNEY-VENTO 
                    HOMELESS ASSISTANCE ACT GRANTS.

  Section 408 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
11364) is amended to read as follows:

``SEC. 408. AUTHORIZATION OF APPROPRIATIONS.

  ``There are authorized to be appropriated to carry out this title 
such sums as may be necessary for each fiscal year.''.

SEC. 7. PERMANENT EXTENSION OF UNITED STATES INTERAGENCY COUNCIL ON 
                    HOMELESSNESS.

  Section 209 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 
11319) is hereby repealed.

SEC. 8. ELIGIBILITY OF PRIVATE NONPROFIT ORGANIZATIONS FOR FUNDING.

  Notwithstanding any other provision of law, the Secretary of Housing 
and Urban Development shall provide that private nonprofit 
organizations (as such term is defined in section 401 of the McKinney-
Vento Homeless Assistance Act (42 U.S.C. 11360)) that are eligible 
entities (as such term is defined in such section 401), including 
faith-based such organizations that are eligible entities, shall be 
eligible for assistance made available or authorized by this Act or by 
the amendments made by this Act (but not including assistance under 
section 452 of the McKinney-Vento Homeless Assistance Act, as added by 
section 3 of this Act), and shall be eligible to be subgrantees for 
entities receiving amounts made available or authorized by this Act or 
by the amendments made by this Act.

SEC. 9. ELIGIBILITY OF FAITH-BASED ORGANIZATIONS.

  Notwithstanding any other provision of law, in determining 
eligibility for assistance made available by this Act or the amendments 
made by this Act or for which appropriations are authorized by this Act 
or the amendments made by this Act, the status of an entity as faith-
based or the possibility that an entity may be faith-based may not be a 
basis for any discrimination against such entity in any manner or for 
any purpose.

SEC. 10. EMERGENCY DESIGNATION.

  (a) In General.--The amounts provided by this Act, and the amendments 
made by this Act, are designated as an emergency requirement pursuant 
to section 4(g) of the Statutory Pay-As-You-Go Act of 2010 (2 U.S.C. 
933(g)).
  (b) Designation in Senate.--In the Senate, this Act and the 
amendments made by this Act are designated as an emergency requirement 
pursuant to section 403(a) of S. Con. Res. 13 (111th Congress), the 
concurrent resolution on the budget for fiscal year 2010.

SEC. 11. CONFORMING AMENDMENTS.

  The table of sections in section 101(b) of the McKinney-Vento 
Homeless Assistance Act is amended--
          (1) in the item relating to title II, by striking 
        ``INTERAGENCY COUNCIL ON THE HOMELESS'' and inserting ``UNITED 
        STATES INTERAGENCY COUNCIL ON HOMELESSNESS'';
          (2) by striking the item relating to section 209; and
          (3) in the item relating to section 491, by striking ``491'' 
        and inserting ``441'';
          (4) in the item relating to section 492, by striking ``492'' 
        and inserting ``442''; and
          (5) by inserting before the item relating to title V the 
        following:

             ``Subtitle E--5-Year Path to End Homelessness

``Sec. 451. Funding to address unmet needs.
``Sec. 452. Special purpose vouchers.
``Sec. 453. Outreach funding.''.

                          Purpose and Summary

    On March 25, 2019, Chairwoman Maxine Waters introduced H.R. 
1856, The Ending Homelessness Act of 2019, which provides a 
comprehensive plan to end homelessness in America. The bill 
would appropriate $13.27 billion in mandatory funding over five 
years to several critical federal housing programs and 
initiatives, providing the resources necessary to effectively 
address the homelessness crisis in America. If enacted, this 
bill is estimated to fund the creation of 410,000 new units of 
housing for people experiencing homelessness.

                  Background and Need for Legislation

    The U.S. Department of Housing and Urban Development (HUD) 
releases the Annual Homeless Assessment Report (AHAR) to 
Congress, which provides the best available estimates of the 
homeless population in the United States. The results of the 
2018 AHAR count found that there are over 550,000 people 
experiencing homelessness in America on a given night.\1\ This 
represents a slight increase from the previous year. The AHAR 
also provides details on the demographics of people that are 
experiencing homelessness. In 2018, nearly 160,000 children and 
youth experienced homelessness, representing nearly 30 percent 
of the total, and over 216,000 women and girls experienced 
homelessness, or 40 percent of the total. Also, racial 
minorities were disproportionately represented among people 
experiencing homelessness in 2018. African Americans comprised 
40 percent of all people experiencing homelessness, despite 
making up only 13 percent of the nation's general population, 
and Hispanic or Latino people comprised 25 percent of the 
total, despite making up only 18 percent of the nation's 
general population. These figures signal that not only is 
homelessness increasing in America, but certain demographics 
are especially at risk of experiencing homelessness.
---------------------------------------------------------------------------
    \1\U.S. Department of Housing and Urban Development Office of 
Community Planning and Development, ``The 2018 Annual Homeless 
Assessment Report (AHAR) to Congress, Part 1: Point-in-Time Estimates 
of Homelessness'' December 2018. Available at: https://
www.hudexchange.info/resources/documents/2018-AHAR-Part-1.pdf
---------------------------------------------------------------------------
    The causes of homelessness are complex and varied, but the 
growing rental housing crisis in many parts of the country has 
been a contributor in driving the lowest income families into 
homelessness. According to the National Low Income Housing 
Coalition (NLIHC), the U.S. has a shortage of more than 7.2 
million rental homes that are both affordable and available to 
the lowest income renter households.\2\ While the issue is more 
acute in some areas, there is no state that has an adequate 
supply of affordable rental housing for the lowest income 
renters.\3\ This lack of affordable housing is contributing to 
increased rents, which is causing many families to struggle to 
afford their rent and remain stably housed. In fact, 71 percent 
of the lowest income renter households are severely cost 
burdened, meaning they are spending more than half of their 
incomes on rent and utilities.\4\ Further, there is no state, 
metropolitan area, or county where a worker earning minimum 
wage can afford a two-bedroom rental home at fair market rent, 
and there are only 22 counties in the country, where they can 
afford a one-bedroom rental home.\5\
---------------------------------------------------------------------------
    \2\National Low-Income Housing Coalition, ``The Gap: A Shortage of 
Affordable Homes,'' March 2017.
    \3\Ibid.
    \4\National Low Income Housing Coalition, ``Out of Reach: The High 
Cost of Housing,'' 2018.
    \5\Ibid.
---------------------------------------------------------------------------
    Congress has responded to the homelessness crisis by 
creating several federal programs in seven different agencies 
that serve people experiencing homelessness. HUD plays a 
primary role in the federal response to homelessness through 
the administration of three main homeless assistance programs. 
First, the Emergency Solutions Grants (ESG) program focuses on 
the emergency shelter and service needs of people experiencing 
homelessness, as well as homelessness prevention and rapid 
rehousing. Second, the Continuum of Care (CoC) program focuses 
on providing longer-term housing and services for people 
experiencing homelessness and is the largest federal program 
that primarily serves people experiencing homelessness. While 
supportive services are eligible uses of ESG and CoC funding, 
in general, these programs focus on providing housing while 
relying on other sources of funding, including other federal 
programs, to provide the corresponding supportive services, 
such as counseling, medical support and employment assistance. 
Third, the HUD VA Supported Housing (HUD-VASH) program, which 
is a joint HUD and VA initiative, provides specially designated 
Section 8 rental assistance vouchers to veterans experiencing 
homelessness while the VA provides supportive services. In 
addition to these responses, HUD has recognized the Housing 
First model's effectiveness in helping to reduce homelessness. 
The Housing Fist model is a proven approach that quickly and 
successfully connects individuals and families experiencing 
homelessness to housing without preconditions and barriers to 
entry, such as sobriety, treatment or service participation 
requirements.
    There are various other federal homeless assistance 
programs at other agencies, including the Runaway and Homeless 
Youth program administered by the Department of Health and 
Human Services and the Education for Homeless Children and 
Youths program administered by the Department of Education. 
Congress created the U.S. Interagency Council on Homelessness 
(USICH) to coordinate the federal response to homelessness 
across relevant federal agencies. USICH is an independent 
agency that leads national efforts to prevent and end 
homelessness in America, driving action and maximizing the 
efficient use of resources in support of best practices at 
every level of government and in partnership with the private 
sector. In accordance with the Homeless Emergency Assistance 
and Rapid Transition to Housing (HEARTH) Act of 2009, USICH 
released the nation's first comprehensive federal strategy to 
prevent and end homelessness in 2010. In 2018, USICH developed 
and released an updated strategic plan, known as Home, 
Together,\6\ which puts forth the national framework for 
ensuring that, when not preventable, homelessness should be a 
rare, brief, and one-time experience.
---------------------------------------------------------------------------
    \6\United States Interagency Council on Homelessness, Communities 
That Have Ended Homelessness. August 2018.
---------------------------------------------------------------------------
    Although the mentioned federal programs are effective in 
serving people experiencing homelessness, progress towards 
ending homelessness has stalled in the absence of new funding. 
Chairwoman Waters' Ending Homelessness Act of 2019 would 
provide a surge of necessary resources to address this crisis 
in America. The bill takes a holistic approach to ending 
homelessness by recognizing the special circumstances that 
often lead to homelessness and the issues commonly facing 
homeless persons. Accordingly, the bill provides funding for 
outreach and case management to connect persons experiencing 
homelessness to needed services, as well as for technical 
assistance to help states and local jurisdictions better align 
their healthcare and housing strategies. In order to ensure a 
strong framework to sustain long term progress, the bill would 
also permanently authorize the McKinney-Vento Homeless 
Assistance Act, which authorizes the main homeless assistance 
grant programs under HUD's jurisdiction, and permanently 
authorize the U.S. Interagency Council on Homelessness, which 
serves a critical role in coordinating the overall federal 
strategy to end homelessness, establishing benchmarks to track 
our progress, and updating the goals as necessary. The Ending 
Homelessness Act includes $13.27 billion in funding amounts 
that are over and above what is already annually provided for 
these existing U.S. Department of Housing and Urban Development 
(HUD) programs. Specifically, the bill provides:
           $5 billion over five years to McKinney-Vento 
        Homeless Assistance Grants, which is expected to 
        provide 85,000 new permanent housing units;
           $2.5 billion over five years to for new 
        Special Purpose Section 8 Housing Choice Vouchers 
        (HCV), which is expected to provide an additional 
        300,000 housing vouchers and would give preference to 
        those who are homeless or at risk of becoming homeless;
           $1.05 billion annually in mandatory spending 
        dedicated to the National Housing Trust Fund, which in 
        the first five years of funding is expected to create 
        25,000 new units affordable to extremely low-income 
        households, with a priority for housing the homeless;
           $500 million over five years in outreach 
        funding to ensure that homeless people are connected to 
        the resources they need and;
           $20 million for states and localities to 
        integrate healthcare and housing initiatives, which 
        provides technical assistance to help state and local 
        governments coordinate their healthcare and housing 
        initiatives that are funded by federal programs.
    The fact that homelessness decreased among subpopulations, 
such as veterans, due to increased dedicated funding is an 
indicator that existing federal programs can and do work. 
However, in the absence of new federal funding, it is 
impossible to meet the growing needs. The Ending Homelessness 
Act of 2019, which is supported by more than twenty 
organizations including national housing advocacy groups, 
homeless services providers, and national public housing 
associations, provides the necessary federal resources to end 
homelessness in America.

                      Section-by-Section Analysis


Section 1. Title

    This section provides that H.R. 1856 may be cited as the 
``Ending Homelessness Act of 2019.''

Section 2. Congressional findings

    This section highlights the most recent data on people 
experiencing homelessness in America. In 2018, there were over 
550,000 people experiencing homelessness in the United States 
on a given night. Although the United States has experienced a 
reduction in veteran homelessness after a surge of new federal 
funding targeted to homeless veterans starting in 2008, major 
progress towards the national goals for ending homelessness in 
the United States has stalled in the absence of increased 
funding.

Section 3. Funding to address unmet needs

    This section adds a new subtitle to and redesignates 
certain sections of Title IV of the McKinney-Vento Homeless 
Assistance Act. The new subtitle consists of three new 
sections, sections 451, 452, and 453.
    Homeless Assistance Funding. New section 451 is entitled 
``Funding to Address Unmet Needs. Subsection (a) appropriates 
$1 billion annually, not otherwise appropriated for each of the 
fiscal years 2020 through 2024, for emergency relief grants to 
address the unmet needs of people experiencing homelessness, 
particularly in jurisdictions with the highest need.
    Subsection (b) allocates the funds appropriated by this 
section by instructing the U.S. Department of Housing and Urban 
Development (HUD) Secretary, in consultation with the U.S. 
Interagency Council on Homelessness (USICH) to establish a 
formula for allocating the grant amounts that takes into 
account the following factors: (A) poverty rates; (B) shortages 
of affordable and available housing for low, very low, and 
extremely low income households; (C) the number of overcrowded 
housing units; (D) the numbers of people experiencing 
unsheltered and chronic homelessness; and (E) any other factors 
determined appropriate. Subsection (b) also requires that the 
formula be devised swiftly and that the distribution of grant 
funding be within 30 days after establishment of the formula.
    Subsection (c) targets chronic homelessness by requiring 
that no less than 75 percent of the funding be used to create 
new permanent supportive housing (PSH), including capital 
costs, rental subsidies, and services. Allows the HUD Secretary 
to waive this requirement if the applicant can demonstrate that 
they have functionally ended chronic homelessness in their 
community, or that the PSH currently under development is 
sufficient to functionally end chronic homelessness once such 
units are available for occupancy.
    Subsection (c) also allows for no more than five percent of 
the total amount of the grant to be used for administrative 
costs, and directs the HUD Secretary to ensure, to the greatest 
extent possible, that grantees are using a Housing First 
approach.
    Subsection (d) provides that expiring contracts for 
leasing, rental assistance, or permanent housing funded by this 
section are eligible for contract renewals funded through the 
annual appropriations process.
    Subsection (e) requires the HUD Secretary and USICH to 
provide reports to Congress on the design and implementation of 
the grant program as well as semiannual reports on progress 
being made, including description of the activities funded with 
the grant amounts. Allows the HUD Secretary to collect any 
information necessary to comply with the reporting 
requirements.
    Special Purpose Vouchers. New section 452 is entitled 
``Special Purpose Vouchers.'' Subsection (a) appropriates $500 
million annually, not otherwise appropriated for each of the 
fiscal years 2020 through 2024, for incremental assistance for 
rental assistance for individuals and families who are 
experiencing homelessness. Annual appropriations provided under 
this section shall fund new incremental vouchers.
    Subsection (a) also limits administrative fees under 
section 8(q) of the United States Housing Act of 1937 (42 
U.S.C. 1437f(q) to no more than 10 percent of the total amount 
of the grant. It also requires that that the Secretary shall 
establish policies and procedures to provide such fees to the 
extent necessary to assist people experiencing homelessness on 
whose behalf rental assistance is provided to find and maintain 
suitable housing.
    Subsection (b) targets the assistance by providing that 
incremental vouchers funded by this section shall be provided 
based on geographic need for such assistance by people 
experiencing homelessness as determined by the Secretary. This 
subsection also requires the Secretary of HUD to ensure that 
local governments are not incentivized or otherwise rewarded 
for eliminating or undermining regulations or policies in a 
number of critical areas.
    Subsection (c) provides that assistance under new section 
452 shall continue to remain available only for individuals 
experiencing homelessness and households cycling in and out of 
shelter. .
    Subsection (d) seeks to ensure long-term effectiveness by 
providing for the renewal of contracts funded by this section 
through the annual appropriations process.
    Subsection (e) provides for more flexible administration of 
the programs by allowing the Secretary to waive, or specify 
alternative requirements for, any provision of statute or 
regulations related to the screening of applicants for 
assistance, admission of applicants, and selection of tenants 
in order to ensure that people experiencing homelessness can 
obtain housing. HUD shall ensure that housing authorities that 
receive vouchers funded through this section take all 
reasonable steps to avoid subsequent homelessness for 
residents.
    Outreach Funding. New Section 453 is entitled ``Outreach 
Funding.'' Subsection (a) appropriates $100 million annually, 
not otherwise appropriated for each of the fiscal years 2020 
through 2024, for grants to provide outreach and coordinate 
services for people experiencing homelessness.
    Subsection (b) directs the HUD Secretary to make the grants 
on a competitive basis and shall give priority to collaborative 
applicants who submit plans to make innovative and effective 
use of staff funded with the grant amounts. Subsection (b) also 
requires that the criteria for the competition be devised 
swiftly and that the distribution of grant funding be within 30 
days after establishment of the criteria.

Section 4. Housing Trust Fund

    Subsection (a) appropriates $1 billion annually, beginning 
in fiscal year 2019 and each fiscal year thereafter, for the 
Housing Trust Fund (HTF). Subsection (a) also appropriates $50 
million annually, beginning in fiscal year 2019 and each fiscal 
year after, for incremental project-based assistance to be used 
in conjunction with grant funds awarded for the HTF by this 
section.
    Subsection (a) also ensures priority for people 
experiencing homelessness by ensuring priority for occupancy 
for dwelling units created with the first five years of funding 
be available for people experiencing homelessness as defined in 
section 103 of the McKinney-Vento Homeless Assistance Act.
    Subsection (b) ensures affordable rents by limiting the 
tenant rent contribution to 30 percent of adjusted income as 
defined by section 3(b) of the United States Housing Act of 
1937. Subsection (b) also directs the HUD Secretary to issue 
revised regulations within 90 days of enactment of this Act.

Section 5. Technical Assistance Funds to help states and local 
        organizations Align Health and Housing Systems

    Subsection (a) appropriates $20 million to provide 
technical assistance (TA) funding for HUD, in collaboration 
with The United States Interagency Council on Homelessness and 
the Secretary of Health and Human Services (HHS) Secretary.
    Subsection (b) provides that funding under subsection (a) 
shall be used to provide state- and local-level technical 
assistance in integrating and aligning policies and funding 
between Medicaid programs, behavioral health providers, and 
housing providers to creative supportive housing opportunities.
    Subsection (c) requires that the Secretary of HUD give 
priority of TA support for states and localities that have the 
highest numbers of people experiencing chronic homelessness. 
Subsection (c) also directs the Secretary of HUD to engage 
state Medicaid directors, governors, state housing and 
homelessness agencies, and any other relevant offices to assist 
states in increasing use of their Medicaid programs to finance 
supportive services for people experiencing homelessness.

Section 6. Permanent authorization of appropriations for McKinney-Vento 
        Homeless Assistance Act grants

    This section provides for a permanent authorization of 
appropriations for McKinney-Vento Homeless Assistance grants.

Section 7. Permanent extension of the United States Interagency Council 
        on Homelessness

    This section provides for a permanent extension of the U.S. 
Interagency Council on Homelessness by repealing the current 
sunset date.

                                Hearings

    For the purposes of section 103(i) of H. Res. 6 for the 
116th Congress--
          (1) Committee on Financial services held a hearing to 
        consider a discussion draft of H.R. 1856 entitled 
        ``Homeless in America: Examining the Crisis and 
        Solutions to End Homelessness'' on February 13, 2019. 
        Democratic witnesses included representatives from the 
        Center for Supportive Services, National Alliance to 
        End Homelessness, National Coalition for Homeless 
        Veterans, the True Colors Fund, and the National 
        Coalition for the Homelessness. The Republican witness 
        was a researcher from Syracuse University. The hearing 
        allowed Members of the Financial Services Committee to 
        hear from witnesses about the continuing challenges of 
        ending homelessness in America, and hear their feedback 
        on HR 1856, ``Ending Homelessness Act of 2019'' as well 
        as other legislation to help overcome those challenges.
          (2) In addition, during the 115th Congress, the 
        Financial Services Committee held a related hearing 
        entitled ``An Overview of Homelessness in America'' on 
        May 17, 2018. Witnesses included representatives from 
        Star House, Los Angeles Homeless Services Authority, 
        National Alliance to End Homelessness, and The 
        Salvation Army.

      Committee Consideration Committee Votes and Roll Call Votes

    In compliance with clause 3(b) of rule XIII of the Rules of 
the House of Representatives, the Committee advises that the 
following roll call votes occurred during the Committee's 
consideration of H.R. 1856:

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  Statement of Oversight Findings and Recommendations of the Committee

    In compliance with clause 3(c)(1) of rule XIII and clause 
2(b)(1) of rule X of the Rules of the House of Representatives, 
the Committee's oversight findings and recommendations are 
reflected in the descriptive portions of this report.

             Statement of Performance Goals and Objectives

    Pursuant to clause (3)(c) of rule XIII of the Rules of the 
House of Representatives, the goals of H.R. XXXX are to 
increase resources to end homelessness across the United 
States.

                 New Budget Authority and CBO Estimate

    Pursuant to clause 3(c)(2) of rule XIII of the Rules of the 
House of Representatives and section 308(a) of the 
Congressional Budget Act of 1974, and pursuant to clause 
3(c)(3) of rule XIII of the Rules of the House of 
Representatives and section 402 of the Congressional Budget Act 
of 1974, the Committee has received the following estimate for 
H.R. 1856 from the Director of the Congressional Budget Office:
                                     U.S. Congress,
                               Congressional Budget Office,
                                       Washington, DC, May 9, 2019.
Hon. Maxine Waters,
Chairwoman, Committee on Financial Services,
House of Representatives, Washington, DC.
    Dear Madam Chairwoman: The Congressional Budget Office has 
prepared the enclosed cost estimate for H.R. 1856, the Ending 
Homelessness Act of 2019.
    If you wish further details on this estimate, we will be 
pleased to provide them. The CBO staff contact is Elizabeth 
Cove Delisle.
            Sincerely,
                                                Keith Hall,
                                                          Director.
    Enclosure.

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    Bill Summary: H.R. 1856 would appropriate funds for 
programs that provide housing, rental assistance, and services 
for homeless households and would authorize the appropriation 
of additional funds for those purposes.
    Estimated Federal Cost: The estimated budgetary effect of 
H.R. 1856 is shown in Table 1. The costs of the legislation 
fall within budget function 600 (income security).

                                                   TABLE 1.--ESTIMATED BUDGETARY EFFECTS OF H.R. 1856
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                By fiscal year, millions of dollars--
                                           -------------------------------------------------------------------------------------------------------------
                                             2019    2020    2021    2022    2023    2024    2025    2026    2027    2028    2029   2019-2024  2019-2029
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              Increases in Direct Spending
 
Budget Authority..........................       0   2,670   2,650   2,650   2,650   2,650       0       0       0       0       0    13,270     13,270
Estimated Outlays.........................       0     495     908   1,858   2,200   2,370   1,989   1,680     730     380     210     7,831     12,820
 
                                                     Increases in Spending Subject to Appropriation
 
Estimated Authorization...................       0   2,689   3,213   3,839   4,480   5,136    n.e.    n.e.    n.e.    n.e.    n.e.    19,357       n.e.
Estimated Outlays.........................       0       0     827   3,079   3,973   4,670    n.e.    n.e.    n.e.    n.e.    n.e.    12,549       n.e.
--------------------------------------------------------------------------------------------------------------------------------------------------------
n.e. = not estimated.

    Basis of Estimate: For this estimate, CBO assumes that the 
legislation will be enacted late in 2019 and that estimated 
amounts will be appropriated each year beginning in 2020. 
Estimated outlays are based on historical spending patterns for 
those programs or for similar programs.
    Direct Spending: H.R. 1856 would appropriate a total of 
$13.3 billion over the 2020-2024 period for a variety of 
programs that would provide housing for homeless households. 
CBO estimates that enacting H.R. 1856 would increase direct 
spending by $12.8 billion over the 2019-2029 period (see Table 
2).
    Housing for Homeless Households. The bill would appropriate 
$1 billion annually over the 2020-2024 period to provide grants 
for housing and services for homeless households. Providers 
would have to use at least 75 percent of the funding for 
permanent supportive housing--housing that includes services 
for homeless households with one or more disabled members. CBO 
estimates that enacting this provision would increase direct 
spending by $4.6 billion over the 2019-2029 period.

                                            TABLE 2.--ESTIMATED INCREASES IN DIRECT SPENDING UNDER H.R. 1856
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                By Fiscal year, millions of dollars--
                                           -------------------------------------------------------------------------------------------------------------
                                             2019    2020    2021    2022    2023    2024    2025    2026    2027    2028    2029   2019-2024  2019-2029
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                              Increases in Direct Spending
 
Housing for Homeless Households:
    Budget Authority......................       0   1,000   1,000   1,000   1,000   1,000       0       0       0       0       0     5,000      5,000
    Estimated Outlays.....................       0       0     160     790     890     910     920     770     140      40      20     2,750      4,640
Housing Trust Fund:
    Budget Authority......................       0   1,000   1,000   1,000   1,000   1,000       0       0       0       0       0     5,000      5,000
    Estimated Outlays.....................       0      10     130     410     660     810     900     870     590     340     190     2,020      4,910
Tenant-Based Rental Assistance:
    Budget Authority......................       0     500     500     500     500     500       0       0       0       0       0     2,500      2,500
    Estimated Outlays.....................       0     433     500     500     500     500      67       0       0       0       0     2,433      2,500
Outreach and Services:
    Budget Authority......................       0     100     100     100     100     100       0       0       0       0       0       500        500
    Estimated Outlays.....................       0      20      60     100     100     100      80      40       0       0       0       380        500
Project-Based Assistance:
    Budget Authority......................       0      50      50      50      50      50       0       0       0       0       0       250        250
    Estimated Outlays.....................       0      28      50      50      50      50      22       0       0       0       0       228        250
Technical Assistance:
    Budget Authority......................       0      20       0       0       0       0       0       0       0       0       0        20         20
    Estimated Outlays.....................       0       4       8       8       0       0       0       0       0       0       0        20         20
    Total Changes:
        Budget Authority..................       0   2,670   2,650   2,650   2,650   2,650       0       0       0       0       0    13,270     13,270
        Estimated Outlays.................       0     495     908   1,858   2,200   2,370   1,989   1,680     730     380     210     7,831     12,820
--------------------------------------------------------------------------------------------------------------------------------------------------------

    Housing Trust Fund. The bill would appropriate $1 billion 
annually over the 2020-2024 period to the Housing Trust Fund 
(HTF). Funds from the HTF are used to construct or repair 
housing that is affordable for low-income households. The bill 
would require that homeless households have priority for 
occupancy in housing units funded by that appropriation. CBO 
estimates that enacting this provision would increase direct 
spending by $4.9 billion over the 2019-2029 period.
    Tenant-Based Rental Assistance. Households that receive 
``tenant-based'' vouchers pay a portion of their income--
usually about 30 percent of their adjusted household income--
for rent on units they find in the private housing market. H.R. 
1856 would appropriate $500 million annually over the 2020-2024 
period for such vouchers for homeless households. CBO estimates 
that enacting this provision would increase direct spending by 
$2.5 billion over the 2019-2029 period.
    Based on current agency practice, CBO assumes that those 
appropriations would provide the first year of voucher 
assistance for homeless households and that the Department of 
Housing and Urban Development (HUD) would use its annual 
appropriations to renew the vouchers in subsequent years. CBO's 
estimate of the budgetary effects of those renewals is 
discussed under the heading ``Spending Subject to 
Appropriation.''
    Outreach and Services. H.R. 1856 would appropriate $100 
million annually over the 2020-2024 period to provide outreach 
and services for homeless households. CBO estimates that 
enacting this provision would increase direct spending by $500 
million over the 2019-2029 period.
    Project-Based Assistance. The bill would appropriate $50 
million annually over the 2020-2024 period for project-based 
assistance for housing units that also receive payments from 
the HTF. HUD provides project-based assistance to property 
owners who agree to make those units available to low-income 
households for a specified period. The assisted households 
usually pay 30 percent of their adjusted household income 
toward rent, and, up to a limit, the federal government pays 
the balance. CBO estimates that enacting this provision would 
increase direct spending by $250 million over the 2019-2029 
period.
    Based on HUD's current practice, CBO assumes that those 
appropriations would provide the first year of assistance for 
housing units and that HUD would use annual appropriations to 
fund assistance in subsequent years. CBO's estimate of the 
budgetary effects of renewing that assistance is discussed 
under the heading ``Spending Subject to Appropriation.''
    Technical Assistance. H.R. 1856 also would appropriate $20 
million for HUD to assist state and local governments with 
coordinating housing and health services for homeless 
populations. CBO estimates that enacting this provision would 
increase direct spending by $20 million over the 2019-2029 
period.
    Spending Subject to Appropriation: CBO estimates that H.R. 
1856 would authorize appropriations totaling $19.4 billion over 
the 2020-2024 period. Assuming appropriation of those amounts, 
CBO estimates that the bill would cost $12.5 billion over the 
2019-2029 period (see Table 3).
    Permanent Authorization of Homeless Assistance Grants. H.R. 
1856 would permanently authorize the Homeless Assistance Grants 
program. Those grantees provide housing and services to 
homeless individuals and families. Although the Congress 
appropriated $2.6 billion for that program in 2019, under 
current law, the program is not authorized after 2019. Assuming 
appropriation of similar amounts and accounting for anticipated 
inflation, CBO estimates that permanently authorizing the 
program would cost about $7.6 billion over the 2019-2024 
period. Based on historical spending patterns for the program, 
CBO expects that outlays for the grants would not begin until 
2021.
    Tenant-Based Rental Assistance. As described in the Direct 
Spending section, H.R. 1856 would appropriate funds for tenant-
based vouchers for homeless households. CBO assumes that those 
appropriations would provide one year of voucher assistance and 
that HUD would use annual appropriations to renew those 
vouchers in subsequent years. CBO estimates that implementing 
this provision would increase spending subject to appropriation 
by $4.7 billion over the 2019-2024 period.
    Project-Based Assistance. As described above in the Direct 
Spending section, the bill would appropriate funds for project-
based assistance for units also subsidized under the HTF. CBO 
assumes that those appropriations would provide one year of 
assistance and that HUD would use annual appropriations to 
renew that assistance in subsequent years. CBO estimates that 
implementing this provision would increase spending subject to 
appropriation by $342 a million over the 2019-2024 period.

                TABLE 3--ESTIMATED INCREASES IN SPENDING SUBJECT TO APPROPRIATION UNDER H.R. 1856
----------------------------------------------------------------------------------------------------------------
                                                           By fiscal year, millions of dollars--
                                          ----------------------------------------------------------------------
                                             2019      2020      2021      2022      2023      2024    2019-2024
----------------------------------------------------------------------------------------------------------------
Homeless Assistance Grants:
    Estimated Authorization..............         0     2,689     2,744     2,799     2,857     2,918     14,007
    Estimated Outlays....................         0         0       430     2,133     2,445     2,549      7,557
Tenant-Based Rental Assistance:
    Estimated Authorization..............         0         0       441       960     1,491     2,032      4,924
    Estimated Outlays....................         0         0       382       890      1419     1,959      4,650
Project-Based Assistance:
    Estimated Authorization..............         0         0        28        80       132       186        426
    Estimated Outlays....................         0         0        15        56       109       162        342
    Total Changes:
        Estimated Authorization..........         0     2,689     3,213     3,839     4,480     5,136     19,357
        Estimated Outlays................         0         0       827     3,079     3,973     4,670     12,549
----------------------------------------------------------------------------------------------------------------

    Uncertainty: CBOs estimate of spending for this bill is 
based on costs and historical spending patterns for similar 
programs or types of assistance. However, CBO cannot precisely 
predict the pace of program implementation. Spending under H.R. 
1856 could be faster or slower than CBOs estimate for two 
reasons:
         Grantees could provide different types of 
        assistance than they have historically. For example, if 
        a larger share of grantees provide housing by leasing 
        existing housing or providing tenant-based assistance 
        than they have in the past, they will probably spend 
        funds faster.
         Grantees might take longer than expected to 
        build their capacity to serve additional homeless 
        households. CBOs estimate reflects the expectation that 
        grantees can expand their programs to serve additional 
        households at a pace that is consistent with historical 
        spending patterns. However, if grantees hire staff or 
        develop new programs more slowly than CBO expects, 
        total spending could be slower.
    Pay-As-You-Go considerations: The Statutory Pay-As-You-Go 
Act of 2010 establishes budget-reporting and enforcement 
procedures for legislation affecting direct spending or 
revenues. All sections of H.R. 1856 are designated as emergency 
requirements under section 4(g) of that act; therefore, 
enacting the bill would not have any pay-as-you-go effects. The 
net changes in outlays that are subject to those procedures are 
shown in Table 4.

                                              TABLE 4--CBO'S ESTIMATE OF PAY-AS-YOU-GO EFFECTS OF H.R. 1856
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                                                 By fiscal year, millions of dollars--
                                              ----------------------------------------------------------------------------------------------------------
                                                2019   2020   2021   2022    2023    2024    2025    2026    2027    2028    2029   2019-2024  2019-2029
--------------------------------------------------------------------------------------------------------------------------------------------------------
                                                          Increase in the Deficit Total Changes
 
Total Changes................................      0    495    908   1,858   2,200   2,370   1,989   1,680     730     380     210     7,831     12,820
Less:
  Amounts Designated as Emergency                  0    495    908   1,858   2,200   2,370   1,989   1,680     730     380     210     7,831     12,820
   Requirementsa.............................
Statutory Pay-As-You-Go Effect...............      0      0      0       0       0       0       0       0       0       0       0         0          0
--------------------------------------------------------------------------------------------------------------------------------------------------------
aThe bill would designate all sections of the bill as emergency requirements under section 4(g) of the Statutory Pay-As-You-Go Act of 2010.

    Increase in Long-Term Deficits: CBO estimates that enacting 
H.R. 1856 would not increase on-budget deficits by more than $5 
billion in any of the four consecutive 10-year periods 
beginning in 2030.
    Mandates: None.
    Estimate prepared by: Federal Costs: Elizabeth Cove 
Delisle, Mandates: Rachel Austin.
    Estimate reviewed by: Sheila Dacey, Chief, Income Security 
and Education Cost Estimates Unit; H. Samuel Papenfuss, Deputy 
Assistant Director for Budget Analysis.

                        Committee Cost Estimate

    Clause 3(d)(1) of rule XIII of the Rules of the House of 
Representatives requires an estimate and a comparison of the 
costs that would be incurred in carrying out H.R. 1856. 
However, clause 3(d)(2)(B) of that rule provides that this 
requirement does not apply when the committee has included in 
its report a timely submitted cost estimate of the bill 
prepared by the Director of the Congressional Budget Office 
under section 402 of the Congressional Budget Act.

                       Unfunded Mandate Statement

    Pursuant to Section 423 of the Congressional Budget and 
Impoundment Control Act (as amended by Section 101(a)(2) of the 
Unfunded Mandates Reform Act, Pub. L. 104-4), the Committee 
adopts as its own the estimate of federal mandates regarding 
H.R. 1856, as amended, prepared by the Director of the 
Congressional Budget Office.

                           Advisory Committee

    No advisory committees within the meaning of section 5(b) 
of the Federal Advisory Committee Act were created by this 
legislation.


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              Application of Law to the Legislative Branch

    H.R. 1856 does not apply to terms and conditions of 
employment or to access to public services or accommodations 
within the legislative branch.

                           Earmark Statement

    In accordance with clause 9 of rule XXI of the Rules of the 
House of Representatives, H.R. 1856 does not contain any 
congressional earmarks, limited tax benefits, or limited tariff 
benefits as described in clauses 9(e), 9(f), and 9(g) of rule 
XXI.

                    Duplication of Federal Programs

    Pursuant to clause 3(c)(5) of rule XIII of the Rules of the 
House of Representatives, the Committee states that no 
provision of H.R. 1856 establishes or reauthorizes a program of 
the Federal Government known to be duplicative of another 
federal program, a program that was included in any report from 
the Government Accountability Office to Congress pursuant to 
section 21 of Public Law 111-139, or a program related to a 
program identified in the most recent Catalog of Federal 
Domestic Assistance.

          Changes in Existing Law Made by the Bill As Reported

    In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, H.R. 1856, as reported, are shown as follows:

         Changes in Existing Law Made by the Bill, as Reported

  In compliance with clause 3(e) of rule XIII of the Rules of 
the House of Representatives, changes in existing law made by 
the bill, as reported, are shown as follows (existing law 
proposed to be omitted is enclosed in black brackets, new 
matter is printed in italics, and existing law in which no 
change is proposed is shown in roman):

                 MCKINNEY-VENTO HOMELESS ASSISTANCE ACT


                      TITLE I--GENERAL PROVISIONS

SECTION 101. SHORT TITLE AND TABLE OF CONTENTS.

  (a) Short Title.--This Act may be cited as the ``McKinney-
Vento Homeless Assistance Act''.
  (b) Table Of Contents.--

                       TITLE I--GENERAL PROVISIONS

Sec. 101. Short title and table of contents.
     * * * * * * *

     TITLE II--[INTERAGENCY COUNCIL ON THE HOMELESS] UNITED STATES 
                   INTERAGENCY COUNCIL ON HOMELESSNESS

     * * * * * * *
[Sec. 209. Termination.]
     * * * * * * *

                      TITLE IV--HOUSING ASSISTANCE

     * * * * * * *

         Subtitle D--Rural Housing Stability Assistance Program

Sec. [491] 441. Rural housing stability assistance.
Sec. [492] 442. Use of FHMA inventory for transitional housing for 
          homeless persons and for turnkey housing.

               Subtitle E--5-Year Path to End Homelessness

Sec. 451. Funding to address unmet needs.
Sec. 452. Special purpose vouchers.
Sec. 453. Outreach funding.

           *       *       *       *       *       *       *


TITLE II--UNITED STATES INTERAGENCY COUNCIL ON HOMELESSNESS

           *       *       *       *       *       *       *


[SEC. 209. TERMINATION.

  [The Council shall cease to exist, and the requirements of 
this title shall terminate, on October 1, 2020]

                      TITLE IV--HOUSING ASSISTANCE

Subtitle A--General Provisions

           *       *       *       *       *       *       *


[SEC. 408. AUTHORIZATION OF APPROPRIATIONS.

  [There are authorized to be appropriated to carry out this 
title $2,200,000,000 for fiscal year 2010 and such sums as may 
be necessary for fiscal year 2011.]

SEC. 408. AUTHORIZATION OF APPROPRIATIONS.

  There are authorized to be appropriated to carry out this 
title such sums as may be necessary for each fiscal year.

           *       *       *       *       *       *       *


         Subtitle D--Rural Housing Stability Assistance Program

SEC. [491.]  441. RURAL HOUSING STABILITY GRANT PROGRAM.

  (a) Establishment.--The Secretary of Housing and Urban 
Development shall establish and carry out a rural housing 
stability grant program. In carrying out the program, the 
Secretary may award grants to eligible organizations in lieu of 
grants under subtitle C in order to pay for the Federal share 
of the cost of--
          (1) rehousing or improving the housing situations of 
        individuals and families who are homeless or in the 
        worst housing situations in the geographic area;
          (2) stabilizing the housing of individuals and 
        families who are in imminent danger of losing housing; 
        and
          (3) improving the ability of the lowest-income 
        residents of the community to afford stable housing.
  (b) Use of Funds.--
          (1) In general.--An eligible organization may use a 
        grant awarded under subsection (a) to provide, in rural 
        areas--
                  (A) rent, mortgage, or utility assistance 
                after 2 months of nonpayment in order to 
                prevent eviction, foreclosure, or loss of 
                utility service;
                  (B) security deposits, rent for the first 
                month of residence at a new location, and 
                relocation assistance;
                  (C) short-term emergency lodging in motels or 
                shelters, either directly or through vouchers;
                  (D) construction of new housing units to 
                provide transitional or permanent housing to 
                homeless individuals and families and 
                individuals and families at risk of 
                homelessness;
                  (E) acquisition or rehabilitation of a 
                structure to provide supportive services or to 
                provide transitional or permanent housing, 
                other than emergency shelter, to homeless 
                individuals and families and individuals and 
                families at risk of homelessness;
                  (F) leasing of property, or portions of 
                property, not owned by the recipient or project 
                sponsor involved, for use in providing 
                transitional or permanent housing to homeless 
                individuals and families and individuals and 
                families at risk of homelessness, or providing 
                supportive services to such homeless and at-
                risk individuals and families;
                  (G) provision of rental assistance to provide 
                transitional or permanent housing to homeless 
                individuals and families and individuals and 
                families at risk of homelessness, such rental 
                assistance may include tenant-based or project-
                based rental assistance;
                  (H) payment of operating costs for housing 
                units assisted under this title;
                  (I) rehabilitation and repairs such as 
                insulation, window repair, door repair, roof 
                repair, and repairs that are necessary to make 
                premises habitable;
                  (J) development of comprehensive and 
                coordinated support services that use and 
                supplement, as needed, community networks of 
                services, including--
                          (i) outreach services to reach 
                        eligible recipients;
                          (ii) case management;
                          (iii) housing counseling;
                          (iv) budgeting;
                          (v) job training and placement;
                          (vi) primary health care;
                          (vii) mental health services;
                          (viii) substance abuse treatment;
                          (ix) child care;
                          (x) transportation;
                          (xi) emergency food and clothing;
                          (xii) family violence services;
                          (xiii) education services;
                          (xiv) moving services;
                          (xv) entitlement assistance; and
                          (xvi) referrals to veterans services 
                        and legal services; and
                  (K) costs associated with making use of 
                Federal inventory property programs to house 
                homeless families, including the program 
                established under title V of the Stewart B. 
                McKinney Homeless Assistance Act and the Single 
                Family Property Disposition Program established 
                pursuant to section 204(g) of the National 
                Housing Act.
          (2) Capacity building activities.--Not more than 20 
        percent of the funds transferred under subsection 
        (l)(1) for a fiscal year may be used by eligible 
        organizations for capacity building activities, 
        including payment of operating costs and staff 
        retention.
  (c) Award of Grants.--
          (1) Communities with populations of less than 
        10,000.--
                  (A) Set aside.--In awarding grants under 
                subsection (a) for a fiscal year, the Secretary 
                shall make available not less than 50 percent 
                of the funds transferred under subsection 
                (l)(1) for the fiscal year for grants to 
                eligible organizations serving communities that 
                have populations of less than 10,000.
                  (B) Priority within set aside.--In awarding 
                grants in accordance with subparagraph (A), the 
                Secretary shall give priority to eligible 
                organizations serving communities with 
                populations of less than 5,000.
          (2) Communities without significant federal 
        assistance.--In awarding grants under subsection (a), 
        including grants awarded in accordance with paragraph 
        (1), the Secretary shall give priority to eligible 
        organizations serving communities not currently 
        receiving significant Federal assistance under this 
        Act.
          (3) State limit.--In awarding grants under subsection 
        (a) for a fiscal year, the Secretary shall not award to 
        eligible organizations within a State an aggregate sum 
        of more than 10 percent of the funds transferred under 
        subsection (l)(1), for the fiscal year.
  (d) Application.--In order to be eligible to receive a grant 
under subsection (a), an organization shall submit an 
application to the Secretary at such time, in such manner, and 
containing such information as the Secretary may require. The 
application shall include, at a minimum--
          (1) a description of the target population and 
        geographic area to be served;
          (2) a description of the types of assistance to be 
        provided;
          (3) an assurance that the assistance to be provided 
        is closely related to the identified needs of the 
        target population;
          (4) a description of the existing assistance 
        available to the target population, including Federal, 
        State, and local programs, and a description of the 
        manner in which the organization will coordinate with 
        and expand existing assistance or provide assistance 
        not available in the immediate area;
          (5) an agreement by the organization that the 
        organization will collect data on the projects 
        conducted by the organization, including assistance 
        provided, number and characteristics of persons served, 
        and causes of homelessness for persons served;
          (6) a description of how individuals and families who 
        are homeless or who have the lowest incomes in the 
        community will be involved by the organization through 
        employment, volunteer services, and otherwise, in 
        providing, operating, and rehabilitating housing 
        assisted under this section and in providing services 
        assisted under this section and services for occupants 
        of housing assisted under this section;
          (7) a description of consultations that took place 
        within the community to ascertain the most important 
        uses for funding under this section, including the 
        involvement of potential beneficiaries of the project; 
        and
          (8) a description of the extent and nature of 
        homelessness and of the worst housing situations in the 
        community.
  (e) Eligible Organizations.--Organizations eligible to 
receive a grant under subsection (a) shall include private 
nonprofit entities and county and local governments.
  (f) Matching Funding.--
          (1) In general.--An organization eligible to receive 
        a grant under subsection (a) shall specify matching 
        contributions from any source other than a grant 
        awarded under this subtitle, that shall be made 
        available in the geographic area in an amount equal to 
        not less than 25 percent of the funds provided for the 
        project or activity, except that grants for leasing 
        shall not be subject to any match requirement.
          (2) Limitations on in-kind match.--The cash value of 
        services provided to the beneficiaries or clients of an 
        eligible organization by an entity other than the 
        organization may count toward the contributions in 
        paragraph (1) only when documented by a memorandum of 
        understanding between the organization and the other 
        entity that such services will be provided.
          (3) Countable activities.--The contributions required 
        under paragraph (1) may consist of--
                  (A) funding for any eligible activity 
                described under subsection (b); and
                  (B) subject to paragraph (2), in-kind 
                provision of services of any eligible activity 
                described under subsection (b).
  (g) Selection Criteria.--The Secretary shall establish 
criteria for selecting recipients of grants under subsection 
(a), including--
          (1) the participation of potential beneficiaries of 
        the project in assessing the need for, and importance 
        of, the project in the community;
          (2) the degree to which the project addresses the 
        most harmful housing situations present in the 
        community;
          (3) the degree of collaboration with others in the 
        community to meet the goals described in subsection 
        (a);
          (4) the performance of the organization in improving 
        housing situations, taking account of the severity of 
        barriers of individuals and families served by the 
        organization;
          (5) for organizations that have previously received 
        funding under this section, the extent of improvement 
        in homelessness and the worst housing situations in the 
        community since such funding began;
          (6) the need for such funds, as determined by the 
        formula established under section 427(b)(2); and
          (7) any other relevant criteria as determined by the 
        Secretary.
  (h) Evaluation.--
          (1) In general.--Not later than 18 months after 
        funding is first made available pursuant to the 
        amendments made by title IV of the Homeless Emergency 
        Assistance and Rapid Transition to Housing Act of 2009, 
        the Secretary shall conduct an evaluation of the 
        program to--
                  (A) determine the effectiveness of the 
                program in meeting the goals described in 
                subsection (a) in the area served; and
                  (B) determine the types of assistance needed 
                to meet the goals described in subsection (a) 
                in rural areas.
          (2) Report.--Not later than 24 months after funding 
        is first made available pursuant to the amendment made 
        by title IV of the Homeless Emergency Assistance and 
        Rapid Transition to Housing Act of 2009, the Secretary 
        shall submit to Congress the evaluation of the program 
        conducted under paragraph (1), including 
        recommendations for any Federal administrative or 
        legislative changes that may be necessary to improve 
        the ability of rural communities to meet the goals 
        described in subsection (a).
  (i) Technical Assistance.--The Secretary shall provide 
technical assistance to eligible organizations in developing 
programs in accordance with this section, and in gaining access 
to other Federal resources that may be used to assist homeless 
persons in rural areas. Such assistance may be provided through 
regional workshops, and may be provided directly or through 
grants to, or contracts with, nongovernmental entities.
  (j) Termination of Assistance.--If an individual or family 
who receives assistance under this section violates 
requirements of the assistance program provided by the 
organization receiving a grant under this section, the 
organization may terminate assistance in accordance with a 
formal process established by the organization that recognizes 
the rights of individuals receiving such assistance to due 
process of law, which may include a hearing.
  (k) Definitions.--
  For purposes of this section:
          (1) Program.--The term ``program'' means the rural 
        housing stability grant program established under this 
        section.
          (2) Rural area; rural community.--The terms ``rural 
        area'' and ``rural community'' mean--
                  (A) any area or community, respectively, no 
                part of which is within an area designated as a 
                standard metropolitan statistical area by the 
                Office of Management and Budget;
                  (B) any area or community, respectively, that 
                is--
                          (i) within an area designated as a 
                        metropolitan statistical area or 
                        considered as part of a metropolitan 
                        statistical area; and
                          (ii) located in a county where at 
                        least 75 percent of the population is 
                        rural; or
                  (C) any area or community, respectively, 
                located in a State that has population density 
                of less than 30 persons per square mile (as 
                reported in the most recent decennial census), 
                and of which at least 1.25 percent of the total 
                acreage of such State is under Federal 
                jurisdiction, provided that no metropolitan 
                city (as such term is defined in section 102 of 
                the Housing and Community Development Act of 
                1974) in such State is the sole beneficiary of 
                the grant amounts awarded under this section.
          (3) Secretary.--The term ``Secretary'' means the 
        Secretary of Housing and Urban Development.
  (l) Program Funding.--
          (1) In general.--The Secretary shall determine the 
        total amount of funding attributable under section 
        427(b)(2) to meet the needs of any geographic area in 
        the Nation that applies for funding under this section. 
        The Secretary shall transfer any amounts determined 
        under this subsection from the Community Homeless 
        Assistance Program and consolidate such transferred 
        amounts for grants under this section, except that the 
        Secretary shall transfer an amount not less than 5 
        percent of the amount available under subtitle C for 
        grants under this section. Any amounts so transferred 
        and not used for grants under this section due to an 
        insufficient number of applications shall be 
        transferred to be used for grants under subtitle C.
          (2) Availability.--Any amount paid to a grant 
        recipient for a fiscal year that remains unobligated at 
        the end of the year shall remain available to the 
        recipient for the purposes for which the payment was 
        made for the next fiscal year. The Secretary shall take 
        such action as may be necessary to recover any amount 
        not obligated by the recipient at the end of the second 
        fiscal year, and shall redistribute the amount to 
        another eligible organization.
  (m) Determination of Funding Source.--For any fiscal year, in 
addition to funds awarded under subtitle B, funds under this 
title to be used in a city or county shall only be awarded 
under either subtitle C or subtitle D.

SEC. [592.]  442. USE OF FMHA INVENTORY FOR TRANSITIONAL HOUSING FOR 
                    HOMELESS PERSONS AND FOR TURNKEY HOUSING.

  (a) In General.--The Secretary of Agriculture (in this 
section referred to as the ``Secretary'') shall, on a priority 
basis, lease or sell program and nonprogram inventory 
properties held by the Secretary under title V of the Housing 
Act of 1949--
          (1) to provide transitional housing; and
          (2) to provide turnkey housing for tenants of such 
        transitional housing and for eligible families.
  (b) Priority.--The priority uses of inventory property under 
this section shall not have a higher priority than--
          (1) the disposition of such property by sale to 
        eligible families; or
          (2) the disposition of such property by transfer for 
        use as rental housing by eligible families.
  (c) Transitional Housing.--
          (1) Leases authorized.--The Secretary shall lease 
        inventory properties to public agencies and nonprofit 
        organizations to provide transitional housing for 
        homeless families and individuals and to provide such 
        agencies the option to provide turnkey housing 
        opportunities for homeless persons and other 
        inadequately housed families.
          (2) Rental to eligible families.--A public agency or 
        nonprofit organization may rent housing leased to it 
        under paragraph (1) to a family for up to 10 years and 
        may, during that period, assist the tenant in obtaining 
        a loan and credit assistance under title V of the 
        Housing Act of 1949 to purchase the housing from the 
        Secretary.
  (d) Lease Procedures.--
          (1) Identification of property.--Upon receipt by the 
        Secretary of written notification from a public agency 
        or nonprofit organization that it proposes to lease a 
        property for the purpose of providing transitional 
        housing or for the purpose of providing transitional 
        housing and turnkey housing opportunities, the 
        Secretary shall--
                  (A) withdraw the property from the market for 
                not more than 30 days for the purpose of 
                negotiations under subparagraph (B);
                  (B) negotiate a lease agreement with the 
                organization or agency; and
                  (C) if a lease is agreed to, commence the 
                repairs necessary to make the property meet 
                standards for decent, safe, and sanitary 
                housing.
          (2) Lease terms.--A lease of inventory property under 
        this section shall--
                  (A) be for a period of not more than 10 
                years;
                  (B) provide for the payment of $1 for the 10-
                year lease; and
                  (C) provide the nonprofit organization or 
                public agency--
                          (i) the right to use the property for 
                        transitional housing; and
                          (ii) the option to arrange for the 
                        sale of the property to an eligible 
                        purchaser.
  (e) Purchase Procedures.--
          (1) Identification of property.--Upon receipt by the 
        Secretary of written notification from a public agency 
        or nonprofit organization that it proposes to purchase 
        a property for the purpose of providing transitional 
        housing or for the purpose of providing transitional 
        housing and turnkey housing opportunities, the 
        Secretary shall--
                  (A) withdraw the property from the market for 
                not more than 30 days for the purpose of 
                negotiations under subparagraph (B);
                  (B) negotiate a purchase agreement with the 
                organization or agency; and
                  (C) if a purchase agreement is agreed to, 
                commence the repairs necessary to make the 
                property meet standards for decent, safe, and 
                sanitary housing.
          (2) Purchase terms.--A purchase of inventory property 
        under this section shall provide for a purchase price 
        equal to not more than the fair market value of the 
        property minus 10 percent.
  (f) Employment of Homeless Individuals.--A public agency or 
nonprofit organization may lease or purchase property under 
this section only if the agency or organization, to the maximum 
extent practicable, involves homeless individuals and families, 
through employment, volunteer services, or otherwise, in 
maintaining, operating, and renovating any properties leased or 
acquired under this section and in providing any services for 
occupants of properties assisted under this section.
  (g) Participation of Homeless Individuals.--
          (1) In general.--The Secretary shall, by regulation, 
        require each public agency and nonprofit organization 
        leasing or purchasing property under this section to 
        provide for the participation of not less than 1 
        homeless individual or former homeless individual on 
        the board of directors or other equivalent policy 
        making entity of such agency or organization, to the 
        extent that such organization or applicant considers 
        and makes policies and decisions regarding any property 
        acquired under this section.
          (2) Waiver.--The Secretary may grant a waiver to a 
        public agency or nonprofit organization that is unable 
        to meet the requirement of paragraph (1), if the agency 
        or organization agrees to otherwise consult with 
        homeless or formerly homeless individuals in 
        considering and making such policies and decisions.
  (h) Budget Compliance.--The authority provided to the 
Secretary under this section shall be effective only to the 
extent approved in advance in appropriations Acts.

              Subtitle E--5-Year Path to End Homelessness

SEC. 451. FUNDING TO ADDRESS UNMET NEEDS.

  (a) Direct Appropriations.--There is appropriated out of any 
money in the Treasury not otherwise appropriated for each of 
fiscal years 2020 through 2024, $1,000,000,000, to remain 
available until expended, for emergency relief grants under 
this section to address the unmet needs of homeless populations 
in jurisdictions with the highest need.
  (b) Formula Grants.--
          (1) Allocation.--Amounts appropriated under 
        subsection (a) for a fiscal year shall be allocated 
        among collaborative applicants that comply with section 
        402, in accordance with the funding formula established 
        under paragraph (2) of this subsection.
          (2) Formula.--The Secretary shall, in consultation 
        with the United States Interagency Council on Homeless, 
        establish a formula for allocating grant amounts under 
        this section to address the unmet needs of homeless 
        populations in jurisdictions with the highest need, 
        using the best currently available data that targets 
        need based on key structural determinants of 
        homelessness in the geographic area represented by a 
        collaborative applicant, which shall include data 
        providing accurate counts of--
                  (A) the poverty rate in the geographic area 
                represented by the collaborative applicant;
                  (B) shortages of affordable housing for low-, 
                very low-, and extremely low-income households 
                in the geographic area represented by the 
                collaborative applicant;
                  (C) the number of overcrowded housing units 
                in the geographic area represented by the 
                collaborative applicant;
                  (D) the number of unsheltered homeless 
                individuals and the number of chronically 
                homeless individuals; and
                  (E) any other factors that the Secretary 
                considers appropriate.
         The formula shall provide priority to collaborative 
        applicants for which the local governments, within the 
        area served by the applicant, have adopted local 
        policies, such as through zoning and regulation, that 
        leverage the private sector's participation to provide 
        housing that is reserved and affordable to low-, very 
        low-, and extremely low-income households, as defined 
        by the Secretary, for a minimum term of 15 years. The 
        Secretary shall establish by regulation the process and 
        manner that local governments will be evaluated. The 
        Secretary shall ensure that local governments are not 
        incentivized or otherwise rewarded for eliminating or 
        undermining the intent of zoning regulations or other 
        regulations or policies that establish fair wages for 
        laborers, ensure health and safety of buildings for 
        residents and the general public, protect fair housing, 
        establish environmental protections, establish 
        standards for resiliency, prevent tenant displacement, 
        or any other requirements that the Secretary determines 
        it is in the public interest to preserve.
          (3) Grants.--For each fiscal year for which amounts 
        are made available under subsection (a), the Secretary 
        shall make a grant to each collaborative applicant for 
        which an amount is allocated pursuant to application of 
        the formula established pursuant to paragraph (2) of 
        this subsection in an amount that is equal to the 
        formula amount determined for such collaborative 
        applicant.
          (4) Timing.--The funding formula required under 
        paragraph (2) shall be established by regulations 
        issued, after notice and opportunity for public 
        comment, not later than 6 months after the date of 
        enactment of this section.
  (c) Use of Grants.--
          (1) In general.--Subject to paragraphs (2) through 
        (4), a collaborative applicant that receives a grant 
        under this section may use such grant amounts only for 
        eligible activities under section 415, 423, or 441(b).
          (2) Permanent supportive housing requirement.--
                  (A) Requirement.--Except as provided in 
                subparagraph (B), each collaborative applicant 
                that receives a grant under this section shall 
                use not less than 75 percent of such grant 
                amount for permanent supportive housing, 
                including capital costs, rental subsidies, and 
                services.
                  (B) Exemption.--The Secretary shall exempt a 
                collaborative applicant from the applicability 
                of the requirement under subparagraph (A) if 
                the applicant demonstrates, in accordance with 
                such standards and procedures as the Secretary 
                shall establish, that--
                          (i) chronic homelessness has been 
                        functionally eliminated in the 
                        geographic area served by the 
                        applicant; or
                          (ii) the permanent supportive housing 
                        under development in the geographic 
                        area served by the applicant is 
                        sufficient to functionally eliminate 
                        chronic homelessness once such units 
                        are available for occupancy.
                The Secretary shall consider and make a 
                determination regarding each request for an 
                exemption under this subparagraph not later 
                than 60 days after receipt of such request.
          (3) Limitation on use for administrative expenses.--
        Not more than 5 percent of the total amount of any 
        grant under this section to a collaborative applicant 
        may be used for costs of administration.
          (4) Housing first requirement.--The Secretary shall 
        ensure that each collaborative applicant that receives 
        a grant under this section is implementing, to the 
        extent possible, and will use such grant amounts in 
        accordance with, a Housing First model for assistance 
        for homeless persons.
  (d) Renewal Funding.--Expiring contracts for leasing, rental 
assistance, or permanent housing shall be treated, for purposes 
of section 429, as expiring contracts referred to in subsection 
(a) of such section.
  (e) Reporting to Congress.--
          (1) Annual reports.--Not later than the expiration of 
        the 12-month period beginning upon the first allocation 
        of amounts made after the date of the enactment of this 
        Act pursuant to subsection (b)(1), and annually 
        thereafter, the Secretary and the United States 
        Interagency Council on Homelessness shall submit a 
        report to the Committees on Financial Services and 
        Appropriations of the House of Representatives and the 
        Committees on Banking, Housing, and Urban Affairs and 
        Appropriations of the Senate providing detailed 
        information regarding the grants made under this 
        section during the preceding year, the activities 
        funded with such grant amounts, and the impact of such 
        activities on the communities where such activities 
        took place.
          (2) Collection of information by secretary.--The 
        Secretary shall require each collaborative applicant 
        that receives a grant under this section to submit such 
        information to the Secretary as may be necessary for 
        the Secretary to comply with the reporting requirement 
        under paragraph (1).

SEC. 452. SPECIAL PURPOSE VOUCHERS.

  (a) Direct Appropriation.--There is appropriated out of any 
money in the Treasury not otherwise appropriated for each of 
fiscal years 2020 through 2024, $500,000,000, to remain 
available until expended, which shall be used as follows:
          (1) Rental assistance.--Except as provided in 
        paragraph (2), such amount shall be used for 
        incremental assistance for rental assistance under 
        section 8(o) of the United States Housing Act of 1937 
        (42 U.S.C. 1437f(o)) for persons and households who are 
        homeless (as such term is defined in section 103 (42 
        U.S.C. 11302)), which assistance shall be in addition 
        to such assistance provided pursuant to renewal of 
        expiring contracts for such assistance.
          (2) Administrative fees.--The Secretary may use not 
        more than 10 percent of such amounts provided for each 
        fiscal year for administrative fees under 8(q) of the 
        United States Housing Act of 1937 (42 U.S.C. 1437f(q)). 
        The Secretary shall establish policies and procedures 
        to provide such fees to the extent necessary to assist 
        homeless persons and families on whose behalf rental 
        assistance is provided to find and maintain suitable 
        housing.
  (b) Allocation.--The Secretary shall make assistance provided 
under this section available to public housing agencies based 
on geographical need for such assistance by homeless persons 
and households, as identified by the Secretary, public housing 
agency administrative performance, and other factors as 
specified by the Secretary. In allocating assistance among 
public housing agencies, the Secretary shall provide priority 
to agencies having jurisdictions in which the local governments 
within such jurisdictions have adopted local policies, such as 
through zoning and regulation, that leverage the private 
sector's participation to provide housing that is reserved and 
affordable to low-, very low-, and extremely low-income 
households, as determined by the Secretary, for a minimum term 
of 15 years. The Secretary shall establish by regulation the 
process and manner that local governments will be evaluated. 
The Secretary shall ensure that local governments are not 
incentivized or otherwise rewarded for eliminating or 
undermining the intent of zoning regulations or other 
regulations or policies that establish fair wages for laborers, 
ensure health and safety of buildings for residents and the 
general public, protect fair housing, establish environmental 
protections, establish standards for resiliency, prevent tenant 
displacement, or any other requirements that the Secretary 
determines it is in the public interest to preserve.
  (c) Availability.--Assistance made available under this 
section shall continue to remain available only for homeless 
persons and households upon turn-over.
  (d) Renewal Funding.--Renewal of expiring contracts for 
rental assistance provided under subsection (a) and for 
administrative fees under such subsection shall, to the extent 
provided in appropriation Acts, be funded under the section 8 
tenant-based rental assistance account.
  (e) Waiver Authority.--Upon a finding by the Secretary that a 
waiver or alternative requirement pursuant to this subsection 
is necessary to ensure that homeless persons and households can 
obtain housing using rental assistance made available under 
this section, the Secretary may waive, or specify alternative 
requirements for, any provision of any statute or regulation 
that the Secretary administers in connection with the use of 
funds made available under this section (except for 
requirements related to fair housing, nondiscrimination, labor 
standards, and the environment) that relates to screening of 
applicants for assistance, admission of applicants, and 
selection of tenants. The Secretary shall require public 
housing agencies receiving rental assistance funding made 
available under this section to take all reasonable actions to 
help assisted persons and families avoid subsequent 
homelessness.

SEC. 453. OUTREACH FUNDING.

  (a) Direct Appropriation.--There is appropriated out of any 
money in the Treasury not otherwise appropriated for each of 
fiscal years 2020 through 2024, $100,000,000, to remain 
available until expended, to the Secretary for grants under 
this section to provide outreach and coordinate services for 
persons and households who are homeless or formerly homeless.
  (b) Grants.--
          (1) In general.--The Secretary shall make grants 
        under this section on a competitive basis only to 
        collaborative applicants who comply with section 402.
          (2) Priority.--The competition for grants under this 
        section shall provide priority--
                  (A) to collaborative applicants who submit 
                plans to make innovative and effective use of 
                staff funded with grant amounts pursuant to 
                subsection (c); and
                  (B) to collaborative applicants for which the 
                local governments, within the area served by 
                the applicant, have adopted local policies, 
                such as through zoning and regulation, that 
                leverage the private sector's participation to 
                provide housing that is reserved and affordable 
                to low-, very low-, and extremely low-income 
                households, as defined by Secretary, for a 
                minimum term of 15 years. The Secretary shall 
                establish by regulation the process and manner 
                that local governments will be evaluated. The 
                Secretary shall ensure that local governments 
                are not incentivized or otherwise rewarded for 
                eliminating or undermining the intent of zoning 
                regulations or other regulations or policies 
                that establish fair wages for laborers, ensure 
                health and safety of buildings for residents 
                and the general public, protect fair housing, 
                establish environmental protections, establish 
                standards for resiliency, prevent tenant 
                displacement, or any other requirements that 
                the Secretary determines it is in the public 
                interest to preserve.
  (c) Use of Grants.--A collaborative applicant that receives a 
grant under this section may use such grant amounts only for 
providing case managers, social workers, or other staff who 
conduct outreach and coordinate services for persons and 
households who are homeless or formerly homeless.
  (d) Timing.--The Secretary shall establish the criteria for 
the competition for grants under this section required under 
subsection (b) by regulations issued, after notice and 
opportunity for public comment, not later than 6 months after 
the date of enactment of this section.

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                              ----------                              


 FEDERAL HOUSING ENTERPRISES FINANCIAL SAFETY AND SOUNDNESS ACT OF 1992




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TITLE XIII--GOVERNMENT SPONSORED ENTERPRISES

           *       *       *       *       *       *       *


Subtitle A--Supervision and Regulation of Enterprises

           *       *       *       *       *       *       *


PART 2--ADDITIONAL AUTHORITIES OF THE DIRECTOR

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Subpart B--Housing Goals

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SEC. 1338. HOUSING TRUST FUND.

  (a) Establishment and Purpose.--
          (1) In general.--The Secretary of Housing and Urban 
        Development (in this section referred to as the 
        ``Secretary'') shall establish and manage a Housing 
        Trust Fund, which shall be funded with amounts 
        allocated by the enterprises under section 1337 and any 
        amounts as are or may be appropriated, transferred, or 
        credited to such Housing Trust Fund under any other 
        provisions of law. The purpose of the Housing Trust 
        Fund under this section is to provide grants to States 
        (as such term is defined in section 1303) for use--
                  (A) to increase and preserve the supply of 
                rental housing for extremely low- and very low-
                income families, including homeless families; 
                and
                  (B) to increase homeownership for extremely 
                low- and very low-income families.
          (2) Federal assistance.--For purposes of the 
        application of Federal civil rights laws, all 
        assistance provided from the Housing Trust Fund shall 
        be considered Federal financial assistance.
  (b) Allocations for HOPE Bond Payments.--
          (1) In general.--Notwithstanding subsection (c), to 
        help address the mortgage crisis, of the amounts 
        allocated pursuant to clauses (i) and (ii) of section 
        1337(a)(1)(B) and clauses (i) and (ii) of section 
        1337(a)(2)(B) in excess of amounts described in section 
        1337(e)--
                  (A) 100 percent of such excess shall be used 
                to reimburse the Treasury for payments made 
                pursuant to section 257(w)(1)(C) of the 
                National Housing Act in calendar year 2009;
                  (B) 50 percent of such excess shall be used 
                to reimburse the Treasury for such payments in 
                calendar year 2010; and
                  (C) 25 percent of such excess shall be used 
                to reimburse the Treasury for such payments in 
                calendar year 2011.
          (2) Excess funds.--At the termination of the HOPE for 
        Homeowners Program established under section 257 of the 
        National Housing Act, if amounts used to reimburse the 
        Treasury under paragraph (1) exceed the total net cost 
        to the Government of the HOPE for Homeowners Program, 
        such amounts shall be used for their original purpose, 
        as described in paragraphs (1)(B) and (2)(B) of section 
        1337(a).
          (3) Treasury fund.--The amounts referred to in 
        subparagraphs (A) through (C) of paragraph (1) shall be 
        deposited into a fund established in the Treasury of 
        the United States by the Secretary of the Treasury for 
        such purpose.
  (c) Allocation for Housing Trust Fund in Fiscal Year 2010 and 
Subsequent Years.--
          (1) In general.--Except as provided in subsection 
        (b), the Secretary shall distribute the amounts 
        allocated for the Housing Trust Fund under this section 
        to provide affordable housing as described in this 
        subsection.
          (2) Permissible designees.--A State receiving grant 
        amounts under this subsection may designate a State 
        housing finance agency, housing and community 
        development entity, tribally designated housing entity 
        (as such term is defined in section 4 of the Native 
        American Housing Assistance and Self-Determination Act 
        of 1997 (25 U.S.C. 4103)), or any other qualified 
        instrumentality of the State to receive such grant 
        amounts.
          (3) Distribution to states by needs-based formula.--
                  (A) In general.--The Secretary shall, by 
                regulation, establish a formula within 12 
                months of the date of enactment of the Federal 
                Housing Finance Regulatory Reform Act of 2008, 
                to distribute amounts made available under this 
                subsection to each State to provide affordable 
                housing to extremely low- and very low-income 
                households.
                  (B) Basis for formula.--The formula required 
                under subparagraph (A) shall include the 
                following:
                          (i) The ratio of the shortage of 
                        standard rental units both affordable 
                        and available to extremely low-income 
                        renter households in the State to the 
                        aggregate shortage of standard rental 
                        units both affordable and available to 
                        extremely low-income renter households 
                        in all the States.
                          (ii) The ratio of the shortage of 
                        standard rental units both affordable 
                        and available to very low-income renter 
                        households in the State to the 
                        aggregate shortage of standard rental 
                        units both affordable and available to 
                        very low-income renter households in 
                        all the States.
                          (iii) The ratio of extremely low-
                        income renter households in the State 
                        living with either (I) incomplete 
                        kitchen or plumbing facilities, (II) 
                        more than 1 person per room, or (III) 
                        paying more than 50 percent of income 
                        for housing costs, to the aggregate 
                        number of extremely low-income renter 
                        households living with either (IV) 
                        incomplete kitchen or plumbing 
                        facilities, (V) more than 1 person per 
                        room, or (VI) paying more than 50 
                        percent of income for housing costs in 
                        all the States.
                          (iv) The ratio of very low-income 
                        renter households in the State paying 
                        more than 50 percent of income on rent 
                        relative to the aggregate number of 
                        very low-income renter households 
                        paying more than 50 percent of income 
                        on rent in all the States.
                          (v) The resulting sum calculated from 
                        the factors described in clauses (i) 
                        through (iv) shall be multiplied by the 
                        relative cost of construction in the 
                        State. For purposes of this subclause, 
                        the term ``cost of construction''--
                                  (I) means the cost of 
                                construction or building 
                                rehabilitation in the State 
                                relative to the national cost 
                                of construction or building 
                                rehabilitation; and
                                  (II) shall be calculated such 
                                that values higher than 1.0 
                                indicate that the State's 
                                construction costs are higher 
                                than the national average, a 
                                value of 1.0 indicates that the 
                                State's construction costs are 
                                exactly the same as the 
                                national average, and values 
                                lower than 1.0 indicate that 
                                the State's cost of 
                                construction are lower than the 
                                national average.
                  (C) Priority.--The formula required under 
                subparagraph (A) shall give priority emphasis 
                and consideration to the factor described in 
                subparagraph (B)(i).
          (4) Allocation of grant amounts.--
                  (A) Notice.--Not later than 60 days after the 
                date that the Secretary determines the formula 
                amounts described in paragraph (3), the 
                Secretary shall caused to be published in the 
                Federal Register a notice that such amounts 
                shall be so available.
                  (B) Grant amount.--In each fiscal year other 
                than fiscal year 2009, the Secretary shall make 
                a grant to each State in an amount that is 
                equal to the formula amount determined under 
                paragraph (3) for that State.
                  (C) Minimum state allocations.--If the 
                formula amount determined under paragraph (3) 
                for a fiscal year would allocate less than 
                $3,000,000 to any of the 50 States of the 
                United States or the District of Columbia, the 
                allocation for such State of the United States 
                or the District of Columbia shall be 
                $3,000,000, and the increase shall be deducted 
                pro rata from the allocations made to all other 
                of the States (as such term is defined in 
                section 1303).
          (5) Allocation plans required.--
                  (A) In general.--For each year that a State 
                or State designated entity receives a grant 
                under this subsection, the State or State 
                designated entity shall establish an allocation 
                plan. Such plan shall--
                          (i) set forth a plan for the 
                        distribution of grant amounts received 
                        by the State or State designated entity 
                        for such year;
                          (ii) be based on priority housing 
                        needs, as determined by the State or 
                        State designated entity in accordance 
                        with the regulations established under 
                        subsection (g)(2)(D);
                          (iii) comply with paragraph (6); and
                          (iv) include performance goals that 
                        comply with the requirements 
                        established by the Secretary pursuant 
                        to subsection (g)(2).
                  (B) Establishment.--In establishing an 
                allocation plan under this paragraph, a State 
                or State designated entity shall--
                          (i) notify the public of the 
                        establishment of the plan;
                          (ii) provide an opportunity for 
                        public comments regarding the plan;
                          (iii) consider any public comments 
                        received regarding the plan; and
                          (iv) make the completed plan 
                        available to the public.
                  (C) Contents.--An allocation plan of a State 
                or State designated entity under this paragraph 
                shall set forth the requirements for eligible 
                recipients under paragraph (8) to apply for 
                such grant amounts, including a requirement 
                that each such application include--
                          (i) a description of the eligible 
                        activities to be conducted using such 
                        assistance; and
                          (ii) a certification by the eligible 
                        recipient applying for such assistance 
                        that any housing units assisted with 
                        such assistance will comply with the 
                        requirements under this section.
          (6) Selection of activities funded using housing 
        trust fund grant amounts.--Grant amounts received by a 
        State or State designated entity under this subsection 
        may be used, or committed for use, only for activities 
        that--
                  (A) are eligible under paragraph (7) for such 
                use;
                  (B) comply with the applicable allocation 
                plan of the State or State designated entity 
                under paragraph (5); and
                  (C) are selected for funding by the State or 
                State designated entity in accordance with the 
                process and criteria for such selection 
                established pursuant to subsection (g)(2)(D).
          (7) Eligible activities.--Grant amounts allocated to 
        a State or State designated entity under this 
        subsection shall be eligible for use, or for commitment 
        for use, only for assistance for--
                  (A) the production, preservation, and 
                rehabilitation of rental housing, including 
                housing under the programs identified in 
                section 1335(a)(2)(B) and for operating costs, 
                [except that not less than 75 percent] except 
                that--
                          (i) not less than 75 percent  of such 
                        grant amounts shall be used for the 
                        benefit only of extremely low-income 
                        families or families with incomes at or 
                        below the poverty line (as such term is 
                        defined in section 673 of the Omnibus 
                        Budget Reconciliation Act of 1981 (42 
                        U.S.C. 9902), including any revision 
                        required by such section) applicable to 
                        a family of the size involved, and not 
                        more than 25 percent for the benefit 
                        only of very low-income families; and
                          (ii) notwithstanding any other 
                        provision of law, all rental housing 
                        dwelling units shall be subject to 
                        legally binding commitments that ensure 
                        that the contribution toward rent by a 
                        family residing in the dwelling unit 
                        shall not exceed 30 percent of the 
                        adjusted income (as such term is 
                        defined in section 3(b) of the United 
                        States Housing Act of 1937 (42 U.S.C. 
                        1437a(b))) of such family; and
                  (B) the production, preservation, and 
                rehabilitation of housing for homeownership, 
                including such forms as down payment 
                assistance, closing cost assistance, and 
                assistance for interest rate buy-downs, that--
                          (i) is available for purchase only 
                        for use as a principal residence by 
                        families that qualify both as--
                                  (I) extremely low- and very 
                                low-income families at the 
                                times described in 
                                subparagraphs (A) through (C) 
                                of section 215(b)(2) of the 
                                Cranston-Gonzalez National 
                                Affordable Housing Act (42 
                                U.S.C. 12745(b)(2)); and
                                  (II) first-time homebuyers, 
                                as such term is defined in 
                                section 104 of the Cranston-
                                Gonzalez National Affordable 
                                Housing Act (42 U.S.C. 12704), 
                                except that any reference in 
                                such section to assistance 
                                under title II of such Act 
                                shall for purposes of this 
                                subsection be considered to 
                                refer to assistance from 
                                affordable housing fund grant 
                                amounts;
                          (ii) has an initial purchase price 
                        that meets the requirements of section 
                        215(b)(1) of the Cranston-Gonzalez 
                        National Affordable Housing Act;
                          (iii) is subject to the same resale 
                        restrictions established under section 
                        215(b)(3) of the Cranston-Gonzalez 
                        National Affordable Housing Act and 
                        applicable to the participating 
                        jurisdiction that is the State in which 
                        such housing is located; and
                          (iv) is made available for purchase 
                        only by, or in the case of assistance 
                        under this subsection, is made 
                        available only to homebuyers who have, 
                        before purchase completed a program of 
                        independent financial education and 
                        counseling from an eligible 
                        organization that meets the 
                        requirements of section 132 of the 
                        Federal Housing Finance Regulatory 
                        Reform Act of 2008.
          (8) Tenant protections and public participation.--All 
        amounts from the Trust Fund shall be allocated in 
        accordance with, and any eligible activities carried 
        out in whole or in part with grant amounts under this 
        subtitle (including housing provided with such grant 
        amounts) shall comply with and be operated in 
        compliance with--
                  (A) laws relating to tenant protections and 
                tenant rights to participate in decision making 
                regarding their residences;
                  (B) laws requiring public participation, 
                including laws relating to Consolidated Plans, 
                Qualified Allocation Plans, and Public Housing 
                Agency Plans; and
                  (C) fair housing laws and laws regarding 
                accessibility in federally assisted housing, 
                including section 504 of the Rehabilitation Act 
                of 1973.
          (9) Eligible recipients.--Grant amounts allocated to 
        a State or State designated entity under this 
        subsection may be provided only to a recipient that is 
        an organization, agency, or other entity (including a 
        for-profit entity or a nonprofit entity) that--
                  (A) has demonstrated experience and capacity 
                to conduct an eligible activity under paragraph 
                (7), as evidenced by its ability to--
                          (i) own, construct or rehabilitate, 
                        manage, and operate an affordable 
                        multifamily rental housing development;
                          (ii) design, construct or 
                        rehabilitate, and market affordable 
                        housing for homeownership; or
                          (iii) provide forms of assistance, 
                        such as down payments, closing costs, 
                        or interest rate buy-downs for 
                        purchasers;
                  (B) demonstrates the ability and financial 
                capacity to undertake, comply, and manage the 
                eligible activity;
                  (C) demonstrates its familiarity with the 
                requirements of any other Federal, State, or 
                local housing program that will be used in 
                conjunction with such grant amounts to ensure 
                compliance with all applicable requirements and 
                regulations of such programs; and
                  (D) makes such assurances to the State or 
                State designated entity as the Secretary shall, 
                by regulation, require to ensure that the 
                recipient will comply with the requirements of 
                this subsection during the entire period that 
                begins upon selection of the recipient to 
                receive such grant amounts and ending upon the 
                conclusion of all activities under paragraph 
                (8) that are engaged in by the recipient and 
                funded with such grant amounts.
          (10) Limitations on use.--
                  (A) Required amount for homeownership 
                activities.--Of the aggregate amount allocated 
                to a State or State designated entity under 
                this subsection not more than 10 percent shall 
                be used for activities under subparagraph (B) 
                of paragraph (7).
                  (B) Deadline for commitment or use.--Grant 
                amounts allocated to a State or State 
                designated entity under this subsection shall 
                be used or committed for use within 2 years of 
                the date that such grant amounts are made 
                available to the State or State designated 
                entity. The Secretary shall recapture any such 
                amounts not so used or committed for use and 
                reallocate such amounts under this subsection 
                in the first year after such recapture.
                  (C) Use of returns.--The Secretary shall, by 
                regulation, provide that any return on a loan 
                or other investment of any grant amount used by 
                a State or State designated entity to provide a 
                loan under this subsection shall be treated, 
                for purposes of availability to and use by the 
                State or State designated entity, as a grant 
                amount authorized under this subsection.
                  (D) Prohibited uses.--The Secretary shall, by 
                regulation--
                          (i) set forth prohibited uses of 
                        grant amounts allocated under this 
                        subsection, which shall include use 
                        for--
                                  (I) political activities;
                                  (II) advocacy;
                                  (III) lobbying, whether 
                                directly or through other 
                                parties;
                                  (IV) counseling services;
                                  (V) travel expenses; and
                                  (VI) preparing or providing 
                                advice on tax returns;
                        and for the purposes of this 
                        subparagraph, the prohibited use of 
                        funds for political activities includes 
                        influencing the selection, nomination, 
                        election, or appointment of one or more 
                        candidates to any Federal, State or 
                        local office as codified in section 501 
                        of the Internal Revenue Code of 1986 
                        (26 U.S.C. 501);
                          (ii) provide that, except as provided 
                        in clause (iii), grant amounts of a 
                        State or State designated entity may 
                        not be used for administrative, 
                        outreach, or other costs of--
                                  (I) the State or State 
                                designated entity; or
                                  (II) any other recipient of 
                                such grant amounts; and
                          (iii) limit the amount of any grant 
                        amounts for a year that may be used by 
                        the State or State designated entity 
                        for administrative costs of carrying 
                        out the program required under this 
                        subsection, including home ownership 
                        counseling, to a percentage of such 
                        grant amounts of the State or State 
                        designated entity for such year, which 
                        may not exceed 10 percent.
                  (E) Prohibition of consideration of use for 
                meeting housing goals or duty to serve.--In 
                determining compliance with the housing goals 
                under this subpart and the duty to serve 
                underserved markets under section 1335, the 
                Director may not consider any grant amounts 
                used under this section for eligible activities 
                under paragraph (7). The Director shall give 
                credit toward the achievement of such housing 
                goals and such duty to serve underserved 
                markets to purchases by the enterprises of 
                mortgages for housing that receives funding 
                from such grant amounts, but only to the extent 
                that such purchases by the enterprises are 
                funded other than with such grant amounts.
  (d) Reduction for Failure to Obtain Return of Misused 
Funds.--If in any year a State or State designated entity fails 
to obtain reimbursement or return of the full amount required 
under subsection (e)(1)(B) to be reimbursed or returned to the 
State or State designated entity during such year--
          (1) except as provided in paragraph (2)--
                  (A) the amount of the grant for the State or 
                State designated entity for the succeeding 
                year, as determined pursuant to this section, 
                shall be reduced by the amount by which such 
                amounts required to be reimbursed or returned 
                exceed the amount actually reimbursed or 
                returned; and
                  (B) the amount of the grant for the 
                succeeding year for each other State or State 
                designated entity whose grant is not reduced 
                pursuant to subparagraph (A) shall be increased 
                by the amount determined by applying the 
                formula established pursuant to this section to 
                the total amount of all reductions for all 
                State or State designated entities for such 
                year pursuant to subparagraph (A); or
          (2) in any case in which such failure to obtain 
        reimbursement or return occurs during a year 
        immediately preceding a year in which grants under this 
        section will not be made, the State or State designated 
        entity shall pay to the Secretary for reallocation 
        among the other grantees an amount equal to the amount 
        of the reduction for the entity that would otherwise 
        apply under paragraph (1)(A).
  (e) Accountability of Recipients and Grantees.--
          (1) Recipients.--
                  (A) Tracking of funds.--The Secretary shall--
                          (i) require each State or State 
                        designated entity to develop and 
                        maintain a system to ensure that each 
                        recipient of assistance under this 
                        section uses such amounts in accordance 
                        with this section, the regulations 
                        issued under this section, and any 
                        requirements or conditions under which 
                        such amounts were provided; and
                          (ii) establish minimum requirements 
                        for agreements, between the State or 
                        State designated entity and recipients, 
                        regarding assistance under this 
                        section, which shall include--
                                  (I) appropriate periodic 
                                financial and project 
                                reporting, record retention, 
                                and audit requirements for the 
                                duration of the assistance to 
                                the recipient to ensure 
                                compliance with the limitations 
                                and requirements of this 
                                section and the regulations 
                                under this section; and
                                  (II) any other requirements 
                                that the Secretary determines 
                                are necessary to ensure 
                                appropriate administration and 
                                compliance.
                  (B) Misuse of funds.--
                          (i) Reimbursement requirement.--If 
                        any recipient of assistance under this 
                        section is determined, in accordance 
                        with clause (ii), to have used any such 
                        amounts in a manner that is materially 
                        in violation of this section, the 
                        regulations issued under this section, 
                        or any requirements or conditions under 
                        which such amounts were provided, the 
                        State or State designated entity shall 
                        require that, within 12 months after 
                        the determination of such misuse, the 
                        recipient shall reimburse the State or 
                        State designated entity for such 
                        misused amounts and return to the State 
                        or State designated entity any such 
                        amounts that remain unused or 
                        uncommitted for use. The remedies under 
                        this clause are in addition to any 
                        other remedies that may be available 
                        under law.
                          (ii) Determination.--A determination 
                        is made in accordance with this clause 
                        if the determination is made by the 
                        Secretary or made by the State or State 
                        designated entity, provided that--
                                  (I) the State or State 
                                designated entity provides 
                                notification of the 
                                determination to the Secretary 
                                for review, in the discretion 
                                of the Secretary, of the 
                                determination; and
                                  (II) the Secretary does not 
                                subsequently reverse the 
                                determination.
          (2) Grantees.--
                  (A) Report.--
                          (i) In general.--The Secretary shall 
                        require each State or State designated 
                        entity receiving grant amounts in any 
                        given year under this section to submit 
                        a report, for such year, to the 
                        Secretary that--
                                  (I) describes the activities 
                                funded under this section 
                                during such year with such 
                                grant amounts; and
                                  (II) the manner in which the 
                                State or State designated 
                                entity complied during such 
                                year with any allocation plan 
                                established pursuant to 
                                subsection (c).
                          (ii) Public availability.--The 
                        Secretary shall make such reports 
                        pursuant to this subparagraph publicly 
                        available.
                  (B) Misuse of funds.--If the Secretary 
                determines, after reasonable notice and 
                opportunity for hearing, that a State or State 
                designated entity has failed to comply 
                substantially with any provision of this 
                section, and until the Secretary is satisfied 
                that there is no longer any such failure to 
                comply, the Secretary shall--
                          (i) reduce the amount of assistance 
                        under this section to the State or 
                        State designated entity by an amount 
                        equal to the amount of grant amounts 
                        which were not used in accordance with 
                        this section;
                          (ii) require the State or State 
                        designated entity to repay the 
                        Secretary any amount of the grant which 
                        was not used in accordance with this 
                        section;
                          (iii) limit the availability of 
                        assistance under this section to the 
                        State or State designated entity to 
                        activities or recipients not affected 
                        by such failure to comply; or
                          (iv) terminate any assistance under 
                        this section to the State or State 
                        designated entity.
  (f) Definitions.--For purposes of this section, the following 
definitions shall apply:
          (1) Extremely low-income renter household.--The term 
        ``extremely low-income renter household'' means a 
        household whose income is not in excess of 30 percent 
        of the area median income, with adjustments for smaller 
        and larger families, as determined by the Secretary.
          (2) Recipient.--The term ``recipient'' means an 
        individual or entity that receives assistance from a 
        State or State designated entity from amounts made 
        available to the State or State designated entity under 
        this section.
          (3) Shortage of standard rental units both affordable 
        and available to extremely low-income renter 
        households.--
                  (A) In general.--The term ``shortage of 
                standard rental units both affordable and 
                available to extremely low-income renter 
                households'' means for any State or other 
                geographical area the gap between--
                          (i) the number of units with complete 
                        plumbing and kitchen facilities with a 
                        rent that is 30 percent or less of 30 
                        percent of the adjusted area median 
                        income as determined by the Secretary 
                        that are occupied by extremely low-
                        income renter households or are vacant 
                        for rent; and
                          (ii) the number of extremely low-
                        income renter households.
                  (B) Rule of construction.--If the number of 
                units described in subparagraph (A)(i) exceeds 
                the number of extremely low-income households 
                as described in subparagraph (A)(ii), there is 
                no shortage.
          (4) Shortage of standard rental units both affordable 
        and available to very low-income renter households.--
                  (A) In general.--The term ``shortage of 
                standard rental units both affordable and 
                available to very low-income renter 
                households'' means for any State or other 
                geographical area the gap between--
                          (i) the number of units with complete 
                        plumbing and kitchen facilities with a 
                        rent that is 30 percent or less of 50 
                        percent of the adjusted area median 
                        income as determined by the Secretary 
                        that are occupied by very low-income 
                        renter households or are vacant for 
                        rent; and
                          (ii) the number of very low-income 
                        renter households.
                  (B) Rule of construction.--If the number of 
                units described in subparagraph (A)(i) exceeds 
                the number of very low-income households as 
                described in subparagraph (A)(ii), there is no 
                shortage.
          (5) Very low-income family.--The term ``very low-
        income family'' has the meaning given such term in 
        section 1303, except that such term includes any family 
        that resides in a rural area that has an income that 
        does not exceed the poverty line (as such term is 
        defined in section 673(2) of the Omnibus Budget 
        Reconciliation Act of 1981 (42 U.S.C. 9902(2)), 
        including any revision required by such section) 
        applicable to a family of the size involved.
          (6) Very low-income renter households.--The term 
        ``very low-income renter households'' means a household 
        whose income is in excess of 30 percent but not greater 
        than 50 percent of the area median income, with 
        adjustments for smaller and larger families, as 
        determined by the Secretary.
  (g) Regulations.--
          (1) In general.--The Secretary shall issue 
        regulations to carry out this section.
          (2) Required contents.--The regulations issued under 
        this subsection shall include--
                  (A) a requirement that the Secretary ensure 
                that the use of grant amounts under this 
                section by States or State designated entities 
                is audited not less than annually to ensure 
                compliance with this section;
                  (B) authority for the Secretary to audit, 
                provide for an audit, or otherwise verify a 
                State or State designated entity's activities 
                to ensure compliance with this section;
                  (C) a requirement that, for the purposes of 
                subparagraphs (A) and (B), any financial 
                statement submitted by a grantee or recipient 
                to the Secretary shall be reviewed by an 
                independent certified public accountant in 
                accordance with Statements on Standards for 
                Accounting and Review Services, issued by the 
                American Institute of Certified Public 
                Accountants;
                  (D) requirements for a process for 
                application to, and selection by, each State or 
                State designated entity for activities meeting 
                the State or State designated entity's priority 
                housing needs to be funded with grant amounts 
                under this section, which shall provide for 
                priority in funding to be based upon--
                          (i) geographic diversity;
                          (ii) ability to obligate amounts and 
                        undertake activities so funded in a 
                        timely manner;
                          (iii) in the case of rental housing 
                        projects under subsection (c)(7)(A), 
                        the extent to which rents for units in 
                        the project funded are affordable, 
                        especially for extremely low-income 
                        families;
                          (iv) in the case of rental housing 
                        projects under subsection (c)(7)(A), 
                        the extent of the duration for which 
                        such rents will remain affordable;
                          (v) the extent to which the 
                        application makes use of other funding 
                        sources; and
                          (vi) the merits of an applicant's 
                        proposed eligible activity;
                  (E) requirements to ensure that grant amounts 
                provided to a State or State designated entity 
                under this section that are used for rental 
                housing under subsection (c)(7)(A) are used 
                only for the benefit of extremely low- and very 
                low-income families; and
                  (F) requirements and standards for 
                establishment, by a State or State designated 
                entity, for use of grant amounts in 2009 and 
                subsequent years of performance goals, 
                benchmarks, and timetables for the production, 
                preservation, and rehabilitation of affordable 
                rental and homeownership housing with such 
                grant amounts.
  (h) Affordable Housing Trust Fund.--If, after the date of 
enactment of the Federal Housing Finance Regulatory Reform Act 
of 2008, in any year, there is enacted any provision of Federal 
law establishing an affordable housing trust fund other than 
under this title for use only for grants to provide affordable 
rental housing and affordable homeownership opportunities, and 
the subsequent year is a year referred to in subsection (c), 
the Secretary shall in such subsequent year and any remaining 
years referred to in subsection (c) transfer to such affordable 
housing trust fund the aggregate amount allocated pursuant to 
subsection (c) in such year. Notwithstanding any other 
provision of law, assistance provided using amounts transferred 
to such affordable housing trust fund pursuant to this 
subsection may not be used for any of the activities specified 
in clauses (i) through (vi) of subsection (c)(9)(D).
  (i) Funding Accountability and Transparency.--Any grant under 
this section to a grantee by a State or State designated 
entity, any assistance provided to a recipient by a State or 
State designated entity, and any grant, award, or other 
assistance from an affordable housing trust fund referred to in 
subsection (h) shall be considered a Federal award for purposes 
of the Federal Funding Accountability and Transparency Act of 
2006 (31 U.S.C. 6101 note). Upon the request of the Director of 
the Office of Management and Budget, the Secretary shall obtain 
and provide such information regarding any such grants, 
assistance, and awards as the Director of the Office of 
Management and Budget considers necessary to comply with the 
requirements of such Act, as applicable, pursuant to the 
preceding sentence.

           *       *       *       *       *       *       *


                             MINORITY VIEWS

    Committee Republicans laud the efforts to end homeless. For 
example, since 2010, programs to address homeless veterans have 
seen at least a 50 percent decrease in homeless cases, as joint 
efforts between the Departments of Housing and Urban 
Development and Veterans Affairs target housing and services at 
the unique needs of those at-risk individuals who have served 
our country. However, there are fewer achievements to note for 
single adults, families, youth under the age of 18, or children 
recently emancipated from the state foster care system.
    In 2018, at any point in time, 552,830 individuals were 
homeless in America. Of that number, 194,487 individuals were 
unsheltered, meaning that they were living in vehicles, tents, 
and makeshift dwellings, among other places. As these 
statistics show and the Committee received testimony in recent 
hearings, homelessness is a multifaceted problem and there is 
no substantial body of evidenced-based research that can tell 
us how to end homelessness.
    However, H.R. 1856, the ``Ending Homelessness Act of 
2019,'' ignores the need to develop more effective and 
efficient approaches in favor of simply throwing more money at 
the problem by increasing HUD homeless spending by 600 percent. 
There is no evidence that such spending will substantially or 
permanently address the underlying causes of homelessness.
    Committee Republicans also note that since 2010, the 
combined federal budget for targeted homeless assistance 
programs, including HUD spending, has grown from approximately 
$3.8 billion to more than $6.14 billion in 2018, an increase of 
62 percent. The Government Accountability Office (GAO) reported 
that 26 programs, across eight Federal agencies, targeted 
individuals or families experiencing or at risk for 
homelessness, with the majority of assistance coming from the 
Departments of Health and Human Services, Housing and Urban 
Development, and the Veterans Administration.
    Since 2010, significant resources have been dedicated to 
addressing homeless. However, the performance metrics over the 
past eight years do not suggest that the current programs to 
end homelessness maximize effectiveness. Committee Republicans 
believe there should be stronger accountability, as well as 
demonstrable measurements of the effectiveness of taxpayer 
dollars, before adding significant amounts of new federal 
spending.
    Committee Republicans are concerned that, if enacted, H.R. 
1856 would lack appropriate Congressional oversight and fail to 
meet its stated purpose. Committee Republicans sought to ensure 
that the $13 billion in mandatory spending under H.R. 1856 
would be subject to appropriations, guaranteeing a regular and 
systematic review by Congress of how effective taxpayer 
resources are utilized to address ending homelessness. That 
accountability requirement was rejected, and H.R. 1856, as 
reported, would not give Congress an opportunity to evaluate or 
adjust to ensure well-intentioned proposals as well as spending 
are successful.
    H.R. 1856 creates new outreach and technical assistance 
programs where the objectives are vague and the metric for 
success is unclear. Moreover, H.R. 1856 would create funding 
formulae for new initiatives significantly balanced toward the 
largest metropolitan areas, at the expense of rural areas, 
small towns, and mid-size cities.
    H.R 1856 makes no provision to ensure an equitable 
distribution of resources on a national basis. In rural areas, 
large geographical areas are served by maybe one or no shelter 
or service at all. For example, it may take an hour or more by 
bus for a homeless person to find a shelter in rural areas. In 
the largest metropolitan areas, however, big shelters and 
comprehensive services are readily available. A 35 percent 
rural set aside or a limitation on funding the largest 25 
metropolitan areas, as recommended by Committee Republicans, 
would have accounted for the significant need to address 
homelessness in rural, small town and mid-size cities. And, it 
would have ensured that H.R. 1856 is not biased towards the 
largest metropolitan urban areas.
    All Members of the Committee remain committed to finding 
effective strategies to end homelessness. However, merely 
directing $13 billion in new mandatory spending over five years 
to existing efforts won't end homelessness. Instead, Committee 
Republicans fear it will feed a broken system that will not 
deliver effective, lasting results.
                                   Barry Loudermilk.
                                   Ted Budd.
                                   Trey Hollingsworth.
                                   Bryan Steil.
                                   John W. Rose.
                                   Denver Riggleman.
                                   Andy Barr.
                                   Lee M. Zeldin.
                                   Ann Wagner.
                                   Bill Huizenga.
                                   Bill Posey.
                                   Tom Emmer.
                                   Scott R. Tipton.
                                   Sean P. Duffy.
                                   Roger Williams.
                                   French J. Hill.
                                   Warren Davidson.
                                   Anthony Gonzalez.
                                   Alexander X. Mooney.
                                   Frank D. Lucas.
                                   Steve Stivers.
                                   Blaine Luetkemeyer.
                                   Patrick T. McHenry.
                                   David Kustoff.
                                   Peter T. King.
                                   Lance Gooden.

                                  [all]