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)).