[House Report 117-424]
[From the U.S. Government Publishing Office]


117th Congress    }                                     {       Report
                        HOUSE OF REPRESENTATIVES
 2d Session       }                                     {      117-424

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



 
        FLEXIBILITY IN ADDRESSING RURAL HOMELESSNESS ACT OF 2022

                                _______
                                

 July 20, 2022.--Committed to the Committee of the Whole House on the 
              State of the Union and ordered to be printed

                                _______
                                

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

                              R E P O R T

                        [To accompany H.R. 7196]

    The Committee on Financial Services, to whom was referred 
the bill (H.R. 7196) to amend the McKinney-Vento Homeless 
Assistance Act to expand the authorized activities under the 
Continuum of Care program to include activities that address 
barriers to transitioning families in rural areas to permanent 
housing, and for other purposes, having considered the same, 
reports favorably thereon with an amendment and recommends that 
the bill as amended do pass.

                                CONTENTS

                                                                   Page
Purpose and Summary..............................................     2
Background and Need for Legislation..............................     2
Section-by-Section Analysis of the Legislation...................     2
Hearings.........................................................     3
Committee Consideration..........................................     3
Committee Votes..................................................     3
Committee Oversight Findings.....................................     3
Statement of Performance Goals and Objectives....................     3
New Budget Authority and C.B.O. Cost Estimate....................     3
Committee Cost Estimate..........................................     3
Federal Mandates Statement.......................................     4
Advisory Committee Statement.....................................     4
Applicability to Legislative Branch..............................     4
Congressional Earmarks, Limited Tax Benefits, and Limited Tariff 
  Benefits.......................................................     4
Duplicative Federal Programs.....................................     4
Changes to Existing Law..........................................     4

    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 ``Flexibility in Addressing Rural 
Homelessness Act of 2022''.

SEC. 2. ELIGIBLE ACTIVITIES UNDER CONTINUUM OF CARE PROGRAM.

  Subsection (a) of section 423 of subtitle C of title IV of the 
McKinney-Vento Homeless Assistance Act (42 U.S.C. 11383(a)) is amended 
by adding at the end the following:
          ``(13) Projects in rural areas that consist of one or more of 
        the following activities:
                  ``(A) Payment of short-term emergency lodging, 
                including in motels or shelters, directly or through 
                vouchers.
                  ``(B) Repairs to units--
                          ``(i) in which homeless individuals and 
                        families will be housed; or
                          ``(ii) which are currently not fit for human 
                        habitation.
                  ``(C) Staff training, professional development, skill 
                development, and staff retention activities.''.

                          Purpose and Summary

    On March, 24, 2022, Representative Axne introduced H.R. 
7196, the ``Flexibility in Addressing Rural Homelessness Act,'' 
which would allow homeless service providers in rural 
communities to use funds from HUD's Continuum of Care program 
for additional activities to increase their capacity and 
address the unique challenges they face when serving people 
experiencing homelessness.

                  Background and Need for Legislation

    Rural communities experience structural barriers that can 
limit the ability of individuals to provide or access 
homelessness services. These barriers include a shortage of 
providers who often cover large service areas, limited 
institutional capacity and staff, fewer homeless services, 
limited housing and shelter options, dispersed populations that 
are harder to engage through outreach, and poor public 
transportation options. The ANS to H.R. 7196 would allow 
homeless services providers in rural communities to use funding 
received under HUD's Continuum of Care (CoC) program for 
additional activities to better meet the needs of their 
community. These additional activities include: 1) payment of 
short-term emergency lodging, including motels or shelters; 3) 
repairs to units in which homeless individuals and families 
will be housed or units not currently fit for human habitation; 
and, 4) capacity-building activities, including staff training, 
professional development, skill development and staff retention 
activities.

                      Section-by-Section Analysis


Section 1. Short title

           This section establishes the short title of 
        the bill as the ``Flexibility in Addressing Rural 
        Homelessness Act of 2022.''

Section 2. Eligible activities under Continuum of Care program

           This section authorizes additional eligible 
        activities under subsection (a) of Section 423 of the 
        McKinney-Vento Homeless Assistance Act for projects in 
        rural areas, including: 1) payment of short-term 
        emergency lodging, including motels or shelters; 3) 
        repairs to units in which homeless individuals and 
        families will be housed or units not currently fit for 
        human habitation; and 4) staff training, professional 
        development, skill development and staff retention 
        activities.

                                Hearings

    For the purposes of section 3(c)(6) of House rule XIII, the 
Committee on Financial Services' Subcommittee on Housing, 
Community Development, and Insurance held a hearing to consider 
H.R. 7196 entitled, ``Housing America: Addressing Challenges in 
Serving People Experiencing Homelessness.''

                        Committee Consideration

    The Committee on Financial Services met in open session on 
May 18, 2022 and ordered H.R. 7196 to be reported favorably to 
the House with an amendment in the nature of a substitute by a 
voice vote, a quorum being present.

                  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 no 
roll call votes occurred during the Committee's consideration 
of H.R. 7196.

  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. 7196 are to allow 
homeless service providers in rural communities to use funds 
from HUD's Continuum of Care program for additional activities 
to increase their capacity and address the unique challenges 
they face when serving people experiencing homelessness.

               New Budget Authority and CBO Cost 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 requested an estimate from the 
Director of the Congressional Budget Office. CBO was unable to 
provide an estimate in a timely manner.

                        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. 7196. After 
careful review, including discussions with the Congressional 
Budget Office, the Committee estimates that H.R. 7196 would 
have an insignificant impact on spending.

                       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 its own the estimate of federal mandates regarding H.R. 
7196, as amended.

                           Advisory Committee

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

              Application of Law to the Legislative Branch

    Pursuant to section 102(b)(3) of the Congressional 
Accountability Act, Pub. L. No. 104-1, H.R. 7196, as amended, 
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. 7196 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. 7196 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 to Existing Law

    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. 7196, 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 (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 IV--HOUSING ASSISTANCE

           *       *       *       *       *       *       *


Subtitle C--Continuum of Care Program

           *       *       *       *       *       *       *


SEC. 423. ELIGIBLE ACTIVITIES.

  (a) In General.--Grants awarded under section 422 to 
qualified applicants shall be used to carry out projects that 
serve homeless individuals or families that consist of one or 
more of the following eligible activities:
          (1) Construction of new housing units to provide 
        transitional or permanent housing.
          (2) Acquisition or rehabilitation of a structure to 
        provide transitional or permanent housing, other than 
        emergency shelter, or to provide supportive services.
          (3) Leasing of property, or portions of property, not 
        owned by the recipient or project sponsor involved, for 
        use in providing transitional or permanent housing, or 
        providing supportive services.
          (4) Provision of rental assistance to provide 
        transitional or permanent housing to eligible persons. 
        The rental assistance may include tenant-based, 
        project-based, or sponsor-based rental assistance. 
        Project-based rental assistance, sponsor-based rental 
        assistance, and operating cost assistance contracts 
        carried out by project sponsors receiving grants under 
        this section may, at the discretion of the applicant 
        and the project sponsor, have an initial term of 15 
        years, with assistance for the first 5 years paid with 
        funds authorized for appropriation under this Act, and 
        assistance for the remainder of the term treated as a 
        renewal of an expiring contract as provided in section 
        429. Project-based rental assistance may include rental 
        assistance to preserve existing permanent supportive 
        housing for homeless individuals and families.
          (5) Payment of operating costs for housing units 
        assisted under this subtitle or for the preservation of 
        housing that will serve homeless individuals and 
        families and for which another form of assistance is 
        expiring or otherwise no longer available.
          (6) Supportive services for individuals and families 
        who are currently homeless, who have been homeless in 
        the prior six months but are currently residing in 
        permanent housing, or who were previously homeless and 
        are currently residing in permanent supportive housing.
          (7) Provision of rehousing services, including 
        housing search, mediation or outreach to property 
        owners, credit repair, providing security or utility 
        deposits, rental assistance for a final month at a 
        location, assistance with moving costs, or other 
        activities that--
                  (A) are effective at moving homeless 
                individuals and families immediately into 
                housing; or
                  (B) may benefit individuals and families who 
                in the prior 6 months have been homeless, but 
                are currently residing in permanent housing.
          (8) In the case of a collaborative applicant that is 
        a legal entity, performance of the duties described 
        under section 402(f)(3).
          (9) Operation of, participation in, and ensuring 
        consistent participation by project sponsors in, a 
        community-wide homeless management information system.
          (10) In the case of a collaborative applicant that is 
        a legal entity, payment of administrative costs related 
        to meeting the requirements described in paragraphs (1) 
        and (2) of section 402(f), for which the collaborative 
        applicant may use not more than 3 percent of the total 
        funds made available in the geographic area under this 
        subtitle for such costs.
          (11) In the case of a collaborative applicant that is 
        a unified funding agency under section 402(g), payment 
        of administrative costs related to meeting the 
        requirements of that section, for which the unified 
        funding agency may use not more than 3 percent of the 
        total funds made available in the geographic area under 
        this subtitle for such costs, in addition to funds used 
        under paragraph (10).
          (12) Payment of administrative costs to project 
        sponsors, for which each project sponsor may use not 
        more than 10 percent of the total funds made available 
        to that project sponsor through this subtitle for such 
        costs.
          (13) Projects in rural areas that consist of one or 
        more of the following activities:
                  (A) Payment of short-term emergency lodging, 
                including in motels or shelters, directly or 
                through vouchers.
                  (B) Repairs to units--
                          (i) in which homeless individuals and 
                        families will be housed; or
                          (ii) which are currently not fit for 
                        human habitation.
                  (C) Staff training, professional development, 
                skill development, and staff retention 
                activities.
  (b) Minimum Grant Terms.--The Secretary may impose minimum 
grant terms of up to 5 years for new projects providing 
permanent housing.
  (c) Use Restrictions.--
          (1) Acquisition, rehabilitation, and new 
        construction.--A project that consists of activities 
        described in paragraph (1) or (2) of subsection (a) 
        shall be operated for the purpose specified in the 
        application submitted for the project under section 422 
        for not less than 15 years.
          (2) Other activities.--A project that consists of 
        activities described in any of paragraphs (3) through 
        (12) of subsection (a) shall be operated for the 
        purpose specified in the application submitted for the 
        project under section 422 for the duration of the grant 
        period involved.
          (3) Conversion.--If the recipient or project sponsor 
        carrying out a project that provides transitional or 
        permanent housing submits a request to the Secretary to 
        carry out instead a project for the direct benefit of 
        low-income persons, and the Secretary determines that 
        the initial project is no longer needed to provide 
        transitional or permanent housing, the Secretary may 
        approve the project described in the request and 
        authorize the recipient or project sponsor to carry out 
        that project.
  (d) Repayment of Assistance and Prevention of Undue 
Benefits.--
          (1) Repayment.--If a recipient or project sponsor 
        receives assistance under section 422 to carry out a 
        project that consists of activities described in 
        paragraph (1) or (2) of subsection (a) and the project 
        ceases to provide transitional or permanent housing--
                  (A) earlier than 10 years after operation of 
                the project begins, the Secretary shall require 
                the recipient or project sponsor to repay 100 
                percent of the assistance; or
                  (B) not earlier than 10 years, but earlier 
                than 15 years, after operation of the project 
                begins, the Secretary shall require the 
                recipient or project sponsor to repay 20 
                percent of the assistance for each of the years 
                in the 15-year period for which the project 
                fails to provide that housing.
          (2) Prevention of undue benefits.--Except as provided 
        in paragraph (3), if any property is used for a project 
        that receives assistance under subsection (a) and 
        consists of activities described in paragraph (1) or 
        (2) of subsection (a), and the sale or other 
        disposition of the property occurs before the 
        expiration of the 15-year period beginning on the date 
        that operation of the project begins, the recipient or 
        project sponsor who received the assistance shall 
        comply with such terms and conditions as the Secretary 
        may prescribe to prevent the recipient or project 
        sponsor from unduly benefitting from such sale or 
        disposition.
          (3) Exception.--A recipient or project sponsor shall 
        not be required to make the repayments, and comply with 
        the terms and conditions, required under paragraph (1) 
        or (2) if--
                  (A) the sale or disposition of the property 
                used for the project results in the use of the 
                property for the direct benefit of very low-
                income persons;
                  (B) all of the proceeds of the sale or 
                disposition are used to provide transitional or 
                permanent housing meeting the requirements of 
                this subtitle;
                  (C) project-based rental assistance or 
                operating cost assistance from any Federal 
                program or an equivalent State or local program 
                is no longer made available and the project is 
                meeting applicable performance standards, 
                provided that the portion of the project that 
                had benefitted from such assistance continues 
                to meet the tenant income and rent restrictions 
                for low-income units under section 42(g) of the 
                Internal Revenue Code of 1986; or
                  (D) there are no individuals and families in 
                the geographic area who are homeless, in which 
                case the project may serve individuals and 
                families at risk of homelessness.
  (e) Staff Training.--The Secretary may allow reasonable costs 
associated with staff training to be included as part of the 
activities described in subsection (a).
  (f) Eligibility for Permanent Housing.--Any project that 
receives assistance under subsection (a) and that provides 
project-based or sponsor-based permanent housing for homeless 
individuals or families with a disability, including projects 
that meet the requirements of subsection (a) and subsection 
(d)(2)(A) of section 428 may also serve individuals who had 
previously met the requirements for such project prior to 
moving into a different permanent housing project.
  (g) Administration of Rental Assistance.--Provision of 
permanent housing rental assistance shall be administered by a 
State, unit of general local government, private nonprofit 
organization, or public housing agency.

           *       *       *       *       *       *       *


                                  [all]