Community Partnership to End Homelessness Act of 2005 [S.1801] Fact Sheet
S200enator Reed (Democrat, Rhode Island), along with 13 cosponsors, has introduced legislation that will reauthorize the Federal funding for McKinney, at $1.6 billion for fiscal year 2006—the proposed bill has been referred to the Senate Committee on Banking, Housing and Urban Affairs.
Since it was enacted in 1987, the McKinney Act has comprised the largest chunk of federal money spent on homelessness. The main components of the bill are presented below, highlighting the government agencies and programs that will be affected. The reauthorization bill replaces what local communities currently call their Local Homeless Coordination Boards - the groups charged with overseeing federal monies for the development and implementation of housing and services for homeless people—with what will be referred to as collaborative applicants (CAs). It also increases funding for the Interagency Council on Homelessness, as well as broadens its role.
The Community Partnership to End Homelessness Act of 2005 will do the following:
Major Impacts
- Require that a grant recipient match—in cash—25% of all Federal funds provided, with the exception of operating costs for permanent housing.
- Set aside a minimum of 30% of total Federal funds available after renewal grants for permanent housing are allocated, for permanent housing for homeless families with disabled adults and homeless disabled individuals.
- After the first 3 years, eligible services will be curtailed unless GAO determines that other Federal funding is not available to make up for those services and the Secretary of HUD issues an order that the full list of services will continue to apply
- Mandate that programs which receive funds must track clients through a Homeless Management Information System (HMIS).
- Allow up to 5% of the total funds granted to Collaborative Applicants and Project Sponsors to be used for financial assistance, relocation assistance, and other homelessness prevention activities.
- Create a tiered incentive program to develop new permanent housing stock for chronically homeless individuals and families (10 years of rental assistance, technical assistance, and a bonus to be determined by HUD Secretary) and homeless families with able bodied adults (technical assistance, and a bonus to be determined by HUD Secretary)
- Limit to 10% of the national pool of funds available to serve homeless families with able bodied adults.
- Repeal previous code sections dealing with “safe havens,” “assistance for single occupancy dwellings,” and the “rural homeless grant program,” and consolidate them into a single competitive grant program called the “Community Homeless Assistance Program.”
Collaborative Applicants (CAs)
- CAs are the geographical entities that coordinate the community process for putting together the applications for the funding.
- CAs will be the recipients and dispensers of the federal funds. They will monitor compliance on the local level with service provision and community collaboration. They will be monitored directly by HUD.
- CAs will be established as homeless assistance planning bodies made up of relevant parties in geographic areas. Must include at least two homeless or formerly homeless people, and representatives from service providers, homeless advocates, government officials, and business people.
- Require CAs to ensure that grant recipients provide performance evaluations and to arrange for annual financial reviews of grant recipients.
- Require CAs to also participate in the distribution process for other federal grants (CDBG, HOPWA and HOME).
- Allow the HUD Secretary to designate a CA in certain circumstances and to take remedial action if the CA does not meet the requirements regarding membership and process.
- Set a timeframe for CAs to distribute funds, while authorizing the Secretary of HUD to set a timeframe for use, recapture and reallocation of funds.
Interagency Council on Homelessness (ICH)
- The Interagency Council on Homelessness is composed of the directors of 18 federal departments and agencies, which was created to coordinate the Federal government’s response to homelessness.
- Allocate $3,000,000 ($3 million) of McKinney for ICH funding.
- The Assistant to the President for Domestic Policy will oversee the ICH.
- Add three new agency directors—Social Security, Attorney General and Office of Management and Budget.
- Require ICH to meet at least twice a year, instead of the previous once a year.
- Increase regional coordinators from 2-5 to 5-10.
- Require ICH to develop a National Strategic Plan to End Homelessness within one year after the enactment of the legislation.
- Require the ICH to develop mechanisms to ensure access by homeless people to all programs and to ensure that all programs are collaborating.
- Require ICH to encourage the creation of State Interagency Councils with multi-year plans to end homelessness at the state, city and county levels.
Housing and Urban Development (HUD)
- Require the Secretary to make available funds to renew expiring contracts for permanent housing, and describes how the Secretary shall make said funds available.
- Secretary of HUD determines for local applicants the estimated pro-rata need for the geographic region using the Continuum of Care formula.
- HUD will allocate and oversee distribution of funds made available by this bill.
Financial Impact
Appropriate $1.6 billion for fiscal year 2006, with the following allocations:
- A minimum of 30% of funds available for new permanent housing for homeless families with a disabled adult and homeless disabled individuals. In calculating this amount, the Secretary is not to include funds that will go to renewal projects.
- $3 million for ICH
- Up to 15% ($240 million cap) for a modified Emergency Shelter Grant program
- Up to 10% ($160 million cap) to serve homeless families with able bodied adults
- CAs that are a legal entity may not spend more than 6% of their awards for administrative costs related to planning, monitoring and evaluating projects
- Project sponsors may spend no more than 5% of the awards granted by the CAs for administrative costs
- Up to 5% ($80 million cap) of Homeless Assistance Program funds for prevention activities
- Up to 1% ($16 million cap) for technical assistance
WRAP and LCCR
