WASHINGTON, DC - Congress today approved U.S. Senator Jack Reed's (D-RI) bill to help communities reduce homelessness nationwide. The Homeless Emergency Assistance and Rapid Transition to Housing (HEARTH) Act of 2009 (S. 808) will provide $2.2 billion for targeted homelessness assistance grant programs; increase current levels of funding for homelessness assistance grants by $600 million; and allocate up to $440 million for homelessness prevention initiatives. It also expands the definition of homelessness in order to help families on the verge of becoming homeless and reauthorizes federal homelessness aid programs for the first time since 1989.

"I am pleased that Congress has approved this legislation with bipartisan support and I look forward to having President Obama sign it into law. This bill will make a real difference in preventing more families from becoming homeless and allowing local communities to assist families in need. This bill invests $2.2 billion for targeted homelessness assistance grants and provides communities with greater flexibility to spend the money on programs that have a proven track record of success," said Reed, a senior member of the Banking Committee, which oversees federal housing policy. "This is a wise use of federal resources that will save taxpayers money in the long run by preventing homelessness, promoting the development of permanent supportive housing, and optimizing self-sufficiency."

The HEARTH Act seeks to address this growing problem by reauthorizing the landmark McKinney-Vento Homeless Assistance Act of 1987. It would simplify and consolidate three competitive U.S. Department of Housing and Urban Development (HUD) homelessness assistance programs into one program and allow more funding to flow to communities that can demonstrate a commitment to accomplishing the goals of preventing and ending homelessness. It would also:

• Allow up to 20% of funds or up to $440 million dollars to be used to for homeless prevention initiatives. This new "Emergency Solutions Grant" program would allow cities and towns to serve people who are about to be evicted, live in severely overcrowded housing, or otherwise live in an unstable situation that puts them at risk of homelessness.

• Require HUD to provide incentives for communities to implement proven strategies to significantly reduce homelessness.

• Provide local communities with greater flexibility to spend money on preventing homelessness.

• Expand the definition of homelessness, which determines eligibility for much of the homeless assistance funding, to include people who will lose their housing in 14 days (current practice is 7 days) and people fleeing or attempting to flee domestic violence, or other dangerous or life threatening situations.

Reed's bill was included in an anti-foreclosure package that was approved in the U.S. House of Representatives today by a vote of 367-54. The Senate had previously approved the plan by a vote of 91-5 in favor of the bill and passed the final version today by unanimous consent.