[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 2234 Introduced in Senate (IS)]
<DOC>
119th CONGRESS
1st Session
S. 2234
To make improvements to the Emergency Solutions Grants and Continuum of
Care programs, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 9, 2025
Mr. Rounds (for himself, Ms. Smith, Mr. Reed, and Mr. Crapo) introduced
the following bill; which was read twice and referred to the Committee
on Banking, Housing, and Urban Affairs
_______________________________________________________________________
A BILL
To make improvements to the Emergency Solutions Grants and Continuum of
Care programs, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE.
This Act may be cited as the ``Reducing Homelessness Through
Program Reform Act''.
SEC. 2. DEFINITIONS.
In this Act:
(1) Appropriate congressional committees.--The term
``appropriate congressional committees'' means--
(A) the Committee on Banking, Housing, and Urban
Affairs of the Senate; and
(B) the Committee on Financial Services of the
House of Representatives.
(2) At risk of homelessness.--The term ``at risk of
homelessness'' has the meaning given the term in section 401 of
the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11360).
(3) Department.--The term ``Department'' means the
Department of Housing and Urban Development.
(4) Homeless.--The term ``homeless'' has the meaning given
the term in section 103 of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11302).
(5) Public housing agency.--The term ``public housing
agency'' has the meaning given the term in section 3(b) of the
United States Housing Act of 1937 (42 U.S.C. 1437a(b)).
(6) Secretary.--The term ``Secretary'', except as otherwise
provided, means the Secretary of Housing and Urban Development.
SEC. 3. ADMINISTRATIVE COSTS FOR THE EMERGENCY SOLUTIONS GRANTS
PROGRAM.
Section 418 of the McKinney-Vento Homeless Assistance Act (42
U.S.C. 11378) is amended by striking ``7.5 percent'' and inserting ``10
percent''.
SEC. 4. AMENDMENTS TO THE CONTINUUM OF CARE PROGRAM.
(a) In General.--Subtitle C of title IV of the McKinney-Vento
Homeless Assistance Act (42 U.S.C. 11381 et seq.) is amended--
(1) in section 402(g) (42 U.S.C. 11360a(g))--
(A) by redesignating paragraph (2) as paragraph
(3); and
(B) by inserting after paragraph (1) the following:
``(2) Time limit on designation.--The Secretary--
``(A) shall accept applications for designation as
a unified funding agency annually or biennially, which
designation shall be effective for not more than 2
years; and
``(B) may, on an annual or biennial basis, renew
any designation under subparagraph (A).'';
(2) in section 422 (42 U.S.C. 11382)--
(A) in subsection (b)--
(i) by striking ``The Secretary'' and
inserting the following:
``(1) In general.--Except as provided in paragraph (2), the
Secretary''; and
(ii) by adding at the end the following:
``(2) 2-year notification.--Subject to the availability of
appropriations, the Secretary may issue a notification of
funding availability for grants awarded under this subtitle
that provides funding for 2 successive fiscal years, which
shall--
``(A) award funds for the second year of projects,
including adjustments under subsection (f), unless the
project is underperforming, as determined by the
collaborative applicant, and the collaborative
applicant applies to replace the project with a new
project; and
``(B) include--
``(i) the method for applying for and
awarding projects to replace underperforming
projects in year 2;
``(ii) the method for applying for and
awarding renewals of expiring grants for
projects that were not eligible for renewal in
the first fiscal year;
``(iii) the method for allocating any
amounts in the second fiscal year that are in
excess of the amount needed to fund the second
fiscal year of all grants awarded in the first
fiscal year;
``(iv) the method of applying for and
awarding grants, which are 1-year transition
grants awarded by the Secretary to project
sponsors for activities under this subtitle to
transition from 1 eligible activity to another
eligible activity if the recipient--
``(I) has the consent of the
continuum of care; and
``(II) meets standards determined
by the Secretary;
``(C) announce by notice the award of second fiscal
year funding and awards for new and renewal projects;
and
``(D) identify the process by which the Secretary
may approve replacement of a collaborative applicant
that is not a unified funding agency to receive the
award in the second fiscal year.'';
(B) in subsection (c)(2)--
(i) by striking ``(A) In general.--Except
as provided in subparagraph (B), the
Secretary'' and inserting ``The Secretary'';
and
(ii) by striking subparagraph (B); and
(C) in subsection (e), by striking ``1 year'' and
inserting ``2 years'';
(3) in section 423(a) (42 U.S.C. 11383)--
(A) in paragraph (4), in the third sentence--
(i) by striking ``, at the discretion of
the applicant and the project sponsor,''; and
(ii) by inserting ``not more than'' before
``15 years'';
(B) in paragraph (7), in the matter preceding
subparagraph (A), by inserting ``payment of not more
than 6 months of arrears for rent and utility
expenses,'' after ``moving costs,''; and
(C) in paragraph (10), by striking ``3 percent''
and inserting ``the greater of $70,000 or 5 percent'';
(4) in section 425 (42 U.S.C. 11385), by adding at the end
the following:
``(f) Adjustment of Costs.--Not later than 1 year after the date of
enactment of this subsection, and on a biennial basis thereafter, the
Comptroller General of the United States--
``(1) shall study the hiring, retention, and compensation
levels of the workforce providing the services described in
subsection (c), including executive directors, case managers,
and front line staff, and examine whether low compensation is
undermining program effectiveness;
``(2) shall submit to the appropriate congressional
committees a report on any findings, and to the Secretary any
recommendations, as the Comptroller General considers
appropriate regarding funding levels for the cost of the
supportive services and the staffing to provide the services
described in subsection (c); and
``(3) in carrying out the study under paragraph (1), may
reference the Consumer Price Index or other similar surveys.'';
(5) in section 426 (42 U.S.C. 11386), by adding at the end
the following:
``(h) Inspections.--When complying with inspection requirements for
a housing unit provided to a homeless individual or family using
assistance under this subtitle, the Secretary may allow a grantee to--
``(1) conduct a pre-inspection not more than 60 days before
leasing the unit;
``(2) conduct a remote or video inspection of the unit; and
``(3) allow the unit to be leased prior to completion of an
inspection if the unit passed an alternative Federal inspection
within the preceding 12-month period, so long as the unit is
inspected not later than 15 days after the start of the
lease.''; and
(6) in section 430 (42 U.S.C. 11386d), by adding at the end
the following:
``(d) Costs Paid by Program Income.--With respect to grant amounts
awarded under this subtitle, costs paid by the program income of a
grant recipient may count toward the contributions required under
subsection (a) if the costs--
``(1) are eligible expenses under this subtitle;
``(2) meet standards determined by the Secretary; and
``(3) supplement activities carried out by the recipient
under this subtitle.''.
(b) Other Modifications.--
(1) Definitions.--In this subsection--
(A) the terms ``collaborative applicant'' and
``eligible entity'' have the meanings given those terms
in section 401 of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11360); and
(B) the terms ``Indian tribe'' and ``tribally
designated housing entity'' have the meanings given
those terms in section 4 of the Native American Housing
Assistance and Self-Determination Act of 1996 (25
U.S.C. 4103).
(2) Nonapplication of civil rights laws.--With respect to
the funds made available for the Continuum of Care program
authorized under subtitle C of title IV of the McKinney-Vento
Homeless Assistance Act (42 U.S.C. 11381 et seq.) under the
heading ``Homeless Assistance Grants'' in the Department of
Housing and Urban Development Appropriations Act, 2021 (Public
Law 116-260) and under section 231 of the Department of Housing
and Urban Development Appropriations Act, 2020 (42 U.S.C.
11364a), title VI of the Civil Rights Act of 1964 (42 U.S.C.
2000d et seq.) and title VIII of the Civil Rights Act of 1968
(42 U.S.C. 3601 et seq.) shall not apply to applications by or
awards for projects to be carried out--
(A) on or off reservation or trust lands for awards
made to Indian tribes or tribally designated housing
entities; or
(B) on reservation or trust lands for awards made
to eligible entities.
(3) Certification.--With respect to funds made available
for the Continuum of Care program authorized under subtitle C
of title IV of the McKinney-Vento Homeless Assistance Act (42
U.S.C. 11381 et seq.) under the heading ``Homeless Assistance
Grants'' under section 231 of the Department of Housing and
Urban Development Appropriations Act, 2020 (42 U.S.C. 11364a)--
(A) applications for projects to be carried out on
reservations or trust land shall contain a
certification of consistency with an approved Indian
housing plan developed under section 102 of the Native
American Housing Assistance and Self-Determination Act
(25 U.S.C. 4112), notwithstanding section 106 of the
Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12706) and section 403 of the McKinney-Vento
Homeless Assistance Act (42 U.S.C. 11361);
(B) Indian tribes and tribally designated housing
entities that are recipients of awards for projects on
reservations or trust land shall certify that they are
following an approved housing plan developed under
section 102 of the Native American Housing Assistance
and Self-Determination Act (25 U.S.C. 4112); and
(C) a collaborative applicant for a Continuum of
Care whose geographic area includes only reservation
and trust land is not required to meet the requirement
in section 402(f)(2) of the McKinney-Vento Homeless
Assistance Act (42 U.S.C. 11360a(f)(2)).
SEC. 5. AMENDMENTS TO THE HOUSING CHOICE VOUCHER PROGRAM.
Section 8(o) of the United States Housing Act of 1937 (42 U.S.C.
1437f(o)) is amended--
(1) in paragraph (5), by adding at the end the following:
``(C) Exceptions.--Notwithstanding subparagraph
(A)--
``(i) a public housing agency may accept a
third party income calculation and verification
of family income for purposes of this
subsection if--
``(I) the calculation and
verification was completed for
determination of income eligibility for
a Federal program or service during the
preceding 12-month period; and
``(II) there has been no change in
income or family composition since the
calculation and verification under
clause (i); and
``(ii) when using prior year income under
section 3(a)(7)(B), a public housing agency
shall use the income of the family as
determined by the agency or owner for the prior
calendar year or another 12-month period ending
during the preceding 12 months, taking into
consideration any redetermination of income
between the start of such prior calendar year
or other 12-month period and the date of the
annual review.'';
(2) in paragraph (8)--
(A) in subparagraph (A)(iii)--
(i) in the clause heading, by striking
``for interim period'';
(ii) in the first sentence--
(I) by striking ``before'' and
inserting ``without performing''; and
(II) by striking ``has been
completed'' and all that follows
through ``subparagraph (B)''; and
(iii) in the second sentence, by striking
``subparagraph (D)'' and inserting
``subparagraphs (D) and (F)'';
(B) in subparagraph (C), by adding at the end the
following: ``This subparagraph shall not apply with
respect to a dwelling unit for which the public housing
agency relied on an alternative inspection method under
subparagraph (E) as the initial inspection.''; and
(C) in subparagraph (E)--
(i) in clause (i)--
(I) by inserting ``(I)'' after
``(i)'';
(II) in subclause (I), as so
designated, by striking ``and'' at the
end; and
(III) by adding at the end the
following:
``(II) the public housing agency (or other
entity pursuant to paragraph (11)) conducted
the inspection during the preceding 12-month
period when the unit was occupied by a previous
tenant assisted under this subsection or was
vacant; or
``(III) the public housing agency--
``(aa) conducted a pre-inspection
not more than 60 days before leasing a
unit;
``(bb) conducted a remote or video
inspection of a unit; or
``(cc) allowed a unit to be leased
prior to completion of an inspection if
the unit passed alternative inspection
within the preceding 12-month period,
so long as the unit is inspected not
later than 15 days after the start of
the lease; and''; and
(3) by adding at the end the following:
``(23) Use of housing assistance funds for deposits and
holding fees.--
``(A) In general.--A public housing agency may use
current and prior year available housing assistance for
tenant-based rental assistance under this subsection
for--
``(i) standard security deposits for rent,
utilities, and any other deposits allowed by
the Secretary that are necessary to lease a
dwelling unit under this subsection; and
``(ii) fees to hold an available dwelling
unit under this subsection during the
inspection and approval process.
``(B) Maximum amount.--The maximum amount a public
housing agency may provide to or on behalf of a family
under clause (i) or (ii) of subparagraph (A) is the
equivalent of 1 month's rent of the selected unit for
each of the purposes under those clauses.
``(C) Allocation baseline.--Any funds used for the
purposes described in subparagraph (A) shall be part of
the allocation baseline for tenant-based contract
renewals.
``(D) Cap.--The Secretary shall establish a cap to
limit the percentage of funds made available under a
housing assistance payment contract that a public