102 STAT. 3258

PUBLIC LAW 100-628—NOV. 7, 1988

Housing.
42 USC 11381
note.

Grants.

Ob) REPORT TO CONGRESS.—Not later than July 1, 1989, the Sec-
retary of Health and Human Services shall submit to the Congress a
report containing recommendations for legislative and regulatory
changes designed to—

(1) improve the ability of the program of aid to families with
dependent children under part A of title IV of the Social
Security Act to respond to emergency needs of families who are
eligible for such aid; and

(2) eliminate the use of funds provided to States under such
program to pay for the provision of shelter in commercial or
similar transient facilities.

SEC. 903. DEMONSTRATION PROJECTS TO REDUCE NUMBER OF HOME-
LESS AFDC FAMILIES IN WELFARE HOTELS.

(a) IN GENERAL.—In order to enable States to provide housing for
homeless families who are recipients of aid to families with depend-
ent children under a State plan approved under part A of title IV of
the Social Security Act in transitional facilities instead of in
commercial or similar transient facilities, at least 2 but not more
than 3 States may undertake and carry out demonstration projects
in accordance with this section. States may use public or private
nonprofit agencies in carrying out demonstration projects in accord-
ance with this section. Demonstration projects under this section
shall meet such conditions and requirements as the Secretary of
Health and Human Services (in this section referred to as the
"Secretary") shall prescribe.

(b) DUTIES OP SECRETARY OF HEALTH AND HUMAN SERVICES.—The
Secretary shall—

(1) consider all applications received from States desiring to
conduct demonstration projects under this section;

(2) transmit to the Comptroller General for review under
subsection (e) a copy of each such application received;

(3) approve at least 2 but not more than 3 applications
involving projects which appear likely to contribute signifi-
cantly to the achievement of the purpose of this section; and

(4) make grants from funds appropriated to cany out this
section to each State whose application is so approved to carry
out the project that is the subject of the application.

(c) PROJECT KEQUiREMENra—The Secretary shall not approve an
application received from a State for a demonstration project under
this section unless the State agency that administers the program of
aid to families with dependent children in the State under a State
plan approved under part A of title IV of the Social Security Act
demonstrates that the project will—

(1) provide housing in transitional facilities only to homeless
families who are recipients of aid to families with dependent
children under the State plan and who reside in commercial or
similar transient facilities;

(2) permanently reduce the number of rooms used to house
homeless families who are recipients of such aid in commercial
or similar transient facilities by the number of units made
available in transitional facilities in accordance with paragraph
(l);and

(3) provide that the Federal share of the total amount of cash
assistance provided under the project to families residing in
transitional facilities plus the total amount of grants made to
the State under this section must be less than or equal to the