WASHINGTON, DC The Senate Banking Committees Subcommittee on Housing and Transportation will today consider a bipartisan bill introduced last year by Senator Jack Reed (D-RI) to provide $1.6 billion for homelessness assistance grant programs to prevent and end homelessness. Senator Wayne Allard (R-CO), Chairman of the Subcommittee, is a cosponsor of the legislation.Originally created as a program to serve as a federal response to the crisis of homelessness, the McKinney-Vento Act has become a safety net for low-income households who are inadequately served by mainstream programs such as Section 8 and Medicaid.Reeds bill, the Community Partnership to End Homelessness Act, amends the housing titles of the McKinney-Vento Homeless Assistance Act of 1987 to realign the incentives behind the Department of Housing and Urban Development's (HUD) homelessness assistance programs, simplify and consolidate three competitive 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. Reed stated, A relatively small number of long-term chronically-homeless persons continue to utilize a disproportionate number of the beds in our nations shelters. I believe that limited federal dollars need to be focused on preventing and ending homelessness, not maintaining it.The legislation would increase current levels of funding for homelessness assistance grant programs by $260 million and would allocate funding to be used for the creation of permanent housing for the disabled, as well as homelessness prevention.Reed stated, We should devote significant energy and resources to ending homelessness in the United States. A safe and decent home should not just be the American dream and the American promise. It should be the American commitment.The Community Partnership to End Homelessness Act would:"Provide Funding for Preventing Homelessness: It would allow communities to use up to 5% of their grant funding on programs to prevent homelessness. "Provide Incentives for Ending Homelessness "Create National Funding Priority for Permanent Housing: It would require HUD to use 30% of total funds available nationally under this title for permanent housing development activities for disabled homeless persons or families with a disabled adult. In addition, funds in addition to the 30% can be used for permanent housing for homeless people without disabilities. "Provide Communities with Bonus for Production of Permanent Housing Stock: It would allow for a bonus for new project-based permanent housing units for chronically homeless individuals or families, or for non-disabled families who are homeless"Preserve Funding for Effective Permanent Housing Programs for Disabled Persons: It would allow HUD to renew permanent housing projects through a noncompetitive process, as long as the projects are in compliance with the rules and are still needed in their communities. Successful experience with this approach for Shelter Plus Care renewals shows that this solves the problem of investor confidence and prevents people from being at risk of losing their housing."Consolidate Competitive Grant Programs: By simplifying the application process, the bill would reduce the administrative burden on communities caused by different program requirements. It would allow funding to be used for an array of eligible activities -- maximizing flexibility, creativity, and local-decision making. "Require Outcome-based Performance Evaluations: It would require local planning boards to conduct outcome-based evaluations of their own performance in ending and preventing homelessness, as well as the performance of project sponsors awarded funds under this title."Encourage Identification of Policies and Practices Impeding the Ending and Preventing of Homelessness: It would requires community planning boards to review relevant public policies and practices (including those related to discharge planning and service termination from publicly supported facilities and systems of care, as well as zoning ordinances) that may result in imminent, repeated, or prolonged homelessness."Promote Access to Mainstream Resources for Supportive Services: It would encourage communities to connect persons who are homeless to mainstream resources, such as food stamps and Medicaid, so that HUD can use more of its funds for housing. Three years after bill enactment, allowable supportive services would be restricted to case management, life skills training, outreach, housing counseling, and others services determined by the Secretary of HUD to be directly relevant to helping homeless persons to access and maintain housing. "Maximize Local and State Resources through Community Planning and Collaboration: It would integrate decision-making regarding funding for shelters and prevention activities into a collaborative and inclusive community planning process to ensure that a community effectively addresses the full Continuum of Care from prevention and shelter to permanent housing and access to mainstream supportive services. "Increase Authorization for Appropriation: $1.6 billion for fiscal year 2007, and such sums as necessary for years 2008, 2009, 2010 and 2011. "Require Technical Assistance: HUD would have to provide technical assistance to potential and actual applicants to improve their capacity to engage in effective planning and implementation processes that reduce and prevent homelessness."Create Uniform Match Requirements: Cash match of 25% for all activities except for renewals of permanent housing operating costs in some circumstances. "Require Timely Award and Use of Funds: It would require HUD, grantees and project sponsors to award, obligate, and utilize funds within certain time periods."Administrative Funds: It would allow 6% of awarded funds to be used by the entity managing the homeless system at the local level to carry out grant administration, management information, and monitoring activities, as well as preparation of financial and performance reports. An additional 5% would be available to project sponsors providing direct services for administrative costs.