oversight

Homelessness: McKinney Act Programs and Funding for Fiscal Year 1989

Published by the Government Accountability Office on 1990-02-16.

Below is a raw (and likely hideous) rendition of the original report. (PDF)

                         United StaWs General Accounting   Office
                         Report to the Congress




                         HOMELESSNESS
                         McKinney Act
                         Programs and Funding
                         for Fiscal Year 1989




(;AO,/K(::I’,I)-!)O-52
                   United States
GAO                General Accounting Office
                   Washington, D.C. 20648

                   Comptroller General
                   of the United States

                   B-229004

                   February 16,199O

                   To the President of the Senate and the
                   Speaker of the House of Representatives

                   The Stewart B. McKinney Homeless Assistance Act (P.L. 100-77, July
                   1987) and its subsequent amendments (P.L. 100-628, Nov. 1988) were
                   enacted to respond to a crisis facing a growing number of individuals
                   and families in the United States-the lack of shelter and other support-
                   ive services. The McKinney Act represented Congress’effort to establish
                   a comprehensive program of assistance for these individuals.

                   Section 102(a) of the Stewart B. McKinney Homeless Assistance Amend-
                   ments Act of 1988 directed that we report annually to the Congress on
                   the status of programs authorized under the act. This report provides a
                   legislative history of the McKinney Act; a description of each McKinney
                   Act program; and the amount of money provided under each program,
                   by state, for fiscal year 1989, While this report focuses on the current
                   status of the McKinney Act programs, our future work will report on the
                   effectiveness of these programs in meeting the needs of the homeless.


                   The McKinney Act authorized 20 homeless assistance programs that
Reqults in Brief   were to provide funds for direct services to the homeless, although two
                   of these programs were later removed from the McKinney Act’s authori-
                   zation and reauthorized under the Hunger Prevention Act of 1988. In
                   addition, the act (1) contained a requirement for jurisdictions to develop
                   and submit a Comprehensive Homeless Assistance Plan (CHAP)--8 docu-
                   ment that outlines a strategy for using federal, state, and local resources
                   to assist the homeless; (2) authorized the Surplus Property Program,
                   which makes underutilized federal property available to assist the
                   homeless; and (3) created the Interagency Council on the Homeless to
                   coordinate the federal programs.

                   For fiscal years 1987-89, the Congress authorized about $1.7 billion and
                   appropriated about $1.1 billion for the McKinney Act programs. The
                   Federal Emergency Management Agency’s (FEMA) Emergency Food and
                   Shelter Program, which provides food and shelter services on an emer-
                   gency basis to needy individuals, received the most funding of any of
                   the homeless assistance programs for this time period-around      $365
                   million. The amount of funding received by the remaining 17 programs
                   for fiscal years 1987-89 ranged from a total of $3.8 million to $114.5
                   million.


                   Page 1                              GAO/RCED-90-62   Status of McKinney   Act Funds
R.229994




Of the 18 McKinney Act programs, 6 provided funds through a formula
or block grant-type process; 10 used a competitive process; and 2 had
received no funding through fiscal year 1989.




abuse treatment, education, and job training. The McKinney Act also (1)
contained a requirement for jurisdictions-applying     for homeless assis-
tance programs administered by the Department of Housing and Urban
Development (HUD)-to develop and submit a CHAP;(2) authorized the
Surplus Property Program, which establishes procedures by which
agencies identify suitable underutilized and unused property that may
be used to assist the homeless; and (3) created the Interagency Council
on the Homeless, an independent organization within the executive
branch that is responsible for coordinating homeless assistance pro-
grams at the various federal agencies. The McKinney Act programs are
administered by several agencies including HUD and the Departments of
Health and Human Services (HHS), Labor, Education, and Veterans
Affairs (VA); FEMA; and the General Services Administration (GSA).




the Congress has authorized about $1.7 billion and appropriated about
$1.1 billion for the McKinney Act programs since July 1987. As figure 1
shows, about $800 million of the appropriated funds-about 70 per-
cent-have gone to provide food and shelter assistance. (Shelter assis-
tance includes funds for emergency shelter programs as well as for HUD'S
transitional and permanent housing programs.) The remaining amount is
divided between health (25 percent), education (3 percent), and job-
training (2 percent) aid. FEMA'SEmergency Food and Shelter Program
has received more funding than any other homeless assistance program
over the last 3 years- about $365 million. (App. I shows the breakdown
of the amount of funds authorized and appropriated to each program
for fiscal years 1987-89.)




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                                      B229004




Figure 1: Funding for Homeless
Asslstcince Programs by Category of
                                      409 MIllIonsof Oollam
Assisthze, 1987-89




                                            Food and          Health   Educallon          Job Tminlng
                                            Shelter


                                            I     I

                                                       1988

                                                       1989




                                      Sixteen of the McKinney Act programs received appropriations between
                                      fiscal years 1987-89 and, in turn, provided funds to organizations that
                                      assisted the homeless. Of the 16,6 programs provided funds by a
                                      formula or block grant-type process, while the remaining 10 used a com-
                                      petitive process.

                                      This report does not provide information on four McKinney Act pro-
                                      grams. Two of these programs, the Temporary Emergency Food Assis-
                                      tance Program and the Food Stamp Outreach Program, were amended
                                      under the original McKinney Act but subsequently extended under the
                                      Hunger Prevention Act of 1988 (P.L. lOO-435), and thus, were not
                                      encompassed by our reporting mandate. The remaining two programs
                                      were reauthorized by the McKinney Act Amendments of 1988, but one
                                      has never received an appropriation through fiscal year 1989 and the
                                      other was not authorized until fiscal year 1990. These two programs are,
                                      respectively, the Exemplary Education Grants Program, administered
                                      by the Department of Education; and the Emergency Assistance Demon-
                                      stration Program, administered by HHS.Because, at the time of our


                                      Page 3                             GAO/RCED-90-62    Status of McKinney   Act Funds
R-229004




review, the two departments had not developed guidance pertaining to
either program, we have not included a description of how they work in
this report.


Appendix II provides the legislative history of the McKinney Act.
Appendixes III through X explain how each program works and provide
funding data for fiscal year 1989, by state. Appendix XI presents each
state’s total amount of funds received from all McKinney Act programs
for fiscal year 1989. Appendix XII is a map illustrating the regional dis-
tribution of fiscal year 1989 McKinney Act funds.

We conducted our review from May to October 1989 at the responsible
agencies’headquarters in Washington, DC. On the basis of our discus-
sions with the Senate Committee on Banking, Housing, and Urban
Affairs and the House Committee on Banking, Finance, and Urban
Affairs, we agreed to provide a legislative history of the McKinney Act,
a summary of how each McKinney Act program works, and the amount
of funds provided under them. To gather program and funding informa-
tion, we talked with program managers and budget officials, and ana-
lyzed relevant program guidance, documents, and studies, However, in
that our mandate was to provide a general overview of the programs,
we did not independently determine agencies’compliance with their pro-
gram guidance and regulations nor did we independently verify the
funding data provided to us.

We discussed the information presented in this report with the agency
officials responsible for each program and incorporated their comments
and suggestions where appropriate. We did not obtain written
comments.

Copies of this report are being sent to interested congressional commit-
tees; the Secretaries of HUD, HHS,Labor, VA, and Education; the Directors
of FEMA and the Office of Management and Budget; and the Administra-
tor of General Services, This work was performed under the direction of
John M. Ols, Jr., Director of Housing and Community Development




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    R-229004




    Issues, Resources, Community, and Economic Development Division
    (202) 276-5525. Other major contributors are listed in appendix XIII.




    Charles A. Bowsher
    Comptroller General
,   of the United States




    Page 6                              GAO/RCED-90-62   Status of McKinney   Act Funds
Contents


Letter
Ap endix I
AukPhorizations and
Ap ropriations for
MCk inney Act
Programs, Fiscal Years
198749
Adpendix II
Le$islative History of   Early Efforts Focus on Emergency Food and Shelter
                              Assistance
the Stewart B.           Legislation Goes Beyond Emergency Needs of the                               16
M&innev Homeless              Homeless
                         100th Congress Expands Homeless Assistance Programs,                         16
Assistanie Act                Enacts the McKinney Act (P.L. 100-77)
                         The McKinney Act Is Reauthorized (P.L. 100-628)                              17
  1
Appendix III                                                                                          19
HomelessAssistance       Comprehensive Homeless Assistance Plan
                         Emergency Shelter Grants Program
                                                                                                      19
                                                                                                      20
Programs of the          Section 8 Moderate Rehabilitation Program for Single-                        23
Department of                Room Occupancy Dwellings for Homeless Individuals
                         Supportive Housing Demonstration Program                                    26
Housing and Urban        Supplemental Assistance for Facilities to Assist the                        31
Development                  Homeless

Appendix IV                                                                                          36
HomelessAssistance       Emergency Food and Shelter Program                                          35
Programs of the
Federal Emergency
Management Agency




                         Page 6                           GAO/RCED-9042   Status of McRinney   Act Funds
                       Contents




Appendix V                                                                                           39
    eless Assistance   Community Demonstration Grant Projects for Alcohol and
                           Drug Abuse Treatment of Homeless Individuals
                                                                                                     39
          of the       Community Mental Health Services Demonstration                                42
   artment of Health       Projects for Homeless Individuals Who Are
   Human Services          Chronically Mentally Ill
                       Community Mental Health Services for the Homeless                             44
                           Block Grant
                       Emergency Community Services Homeless Grant Program                           47
                       Health Care for the Homeless                                                  60

Apbendix VI                                                                                          64
HomelessAssistance     Homeless Chronically Mentally Ill Veterans Program
                       Domiciliary Care for Homeless Veterans
                                                                                                     54
                                                                                                     56
Programs of the
Department of
Veterans Affairs
Appendix VII                                                                                         60
Hoheless Assistance    Appropriation Cycle for Education Programs Differs
                           From Other McKinney Act Programs
                                                                                                     60
Programs of the        Adult Education for the Homeless                                              60
De!partmentof          Education for Homeless Children and Youth                                     63
Education
Appendix VIII                                                                                        67
HomelessAssistance     Homeless Veterans Reintegration Projects
                       Job Training for the Homeless Demonstration Program
                                                                                                     67
                                                                                                     70
Programs of the
Department of Labor
Appendix IX                                                                                          73
Information on the     Interagency Council on the Homeless                                           73
Interagency Council
on the Homeless
           0


                       Page 7                            GAO/RCED-90-62   Status of McKinney   Act Funds
                       Contents




Appendix V                                                                                            39
HomelessAssistance     Community Demonstration Grant Projects for Alcohol and                         39
                           Drug Abuse Treatment of Homeless Individuals
Programs of the        Community Mental Health Services Demonstration                                 42
Department of Health       Projects for Homeless Individuals Who Are
and Human Services         Chronically Mentally 111
                       Community Mental Health Services for the Homeless                              44
                           Block Grant
                       Emergency Community Services Homeless Grant Program                            47
                       Health Care for the Homeless                                                   50

Apbendix VI
HomelessAssistance     Homeless Chronically Mentally Ill Veterans Program                             54
                       Domiciliary Care for Homeless Veterans                                         56
Programs of the
Department of
Veterans Affairs
Appendix VII
HomelessAssistance     Appropriation Cycle for Education Programs Differs                            ii:
                           From Other McKinney Act Programs
Programs of the        Adult Education for the Homeless
Department of          Education for Homeless Children and Youth
Education
Appendix VIII                                                                                        67
HomelessAssistance     Homeless Veterans Reintegration Projects
                       Job Training for the Homeless Demonstration Program
                                                                                                     67
                                                                                                     70
Programs of the
Department of Labor
Appendix IX                                                                                          73
Information on the     Interagency Council on the Homeless                                           73
Interagency Council
on the Homeless



                       Page 7                            GAO/RCED-90-52   Status of McKinney   Act Funds
Contents




Table 111.4:Section 8 Moderate Rehabilitation Program for                       25
    Single-Room Occupancy Dwellings for Homeless
    Individuals-Funds     Provided for Fiscal Year 1989 by
    State
Table 111.6:Funds Authorized and Appropriated for the                           29
    Supportive Housing Demonstration Program
Table 111.6:Supportive Housing Demonstration                                    29
    Program-Funds Provided for Fiscal Year 1989 by
    State for Transitional Housing
Table 111.7:Supportive Housing Demonstration                                    31
    Program-Funds Provided for Fiscal Year 1989 by
    State for Permanent Housing
Table 111.8:Funds Authorized and Appropriated for the                           33
    Supplemental Assistance for Facilities to Assist the
    Homeless Program
Table IV.1: Funds Authorized and Appropriated for the                           37
    Emergency Food and Shelter Program
Table IV.2: Emergency Food and Shelter Program-Funds                            37
    Provided for Fiscal Year 1989 by State/Territory
Table V. 1: Funds Authorized and Appropriated for the                           41
    Community Demonstration Grants Program for
    Alcohol and Drug Abuse Treatment for Homeless
    Individuals
Table V-2: Community Demonstration Grants Program for                           41
    Alcohol and Drug Abuse Treatment for Homeless
    Individuals-Funds     Provided for Fiscal Year 1989 by
    State
Table V.3: Funds Authorized and Appropriated for the                            44
    Mental Health Services Demonstration Projects for
    Homeless Individuals Who Are Chronically Mentally
    111
Table V.4: Community Mental Health Services                                     44
    Demonstration Projects for Homeless Individuals
    Who Are Chronically Mentally Ill-Funds Provided
     for Fiscal Year 1989 by State
Table V.6: Funds Authorized and Appropriated for the                            46
     Community Mental Health Services for the Homeless
     Block Grant
Table V-6: Community Mental Health Services for the                             47
     Homeless Block Grant-Funds Provided for Fiscal
     Year 1989 by State/Territory




Page 9                              GAO/RCED-90-62   Status of McKinney   Act Funds
Contmta




Table V.7: Funds Authorized and Appropriated for the                           48
    Emergency Community Services Homeless Grant
    Program
Table V.8: Emergency Community Services Homeless                               49
    Grant Program- Funds Provided for Fiscal Year
    1989 by State/Territory
Table V.9: Funds Authorized and Appropriated for the                           52
    Health Care for the Homeless Program
Table V. 10: Health Care for the Homeless Program-                             52
    Funds Provided for Fiscal Year 1989 by State
Table VI. 1: Funds Authorized and Appropriated for the                         55
    Homeless Chronically Mentally Ill Veterans Program
Table VI.2: Homeless Chronically Mentally Ill Veterans                         56
    Program-Funds Provided for Fiscal Year 1989 by
    State
Table VI.3: Funds Authorized and Appropriated for the                          59
    Domiciliary Care for Homeless Veterans Program
Table VI.4: Domiciliary Care for Homeless Veterans                             59
    Program-Funds Provided for Fiscal Year 1989 by
    State
Table VII.l: Funds Authorized and Appropriated for the                         61
    Adult Education for the Homeless Program
Table VII.2: Adult Education for the Homeless Program-                         62
    Funds Provided for Fiscal Year 1988 by State/
    Territory
Table VII.3: Funds Authorized and Appropriated for the                         64
    Education for Homeless Children and Youth Program
Table VII.4 Education for Homeless Children and Youth                          65
    Program-Funds Provided for Fiscal Year 1988 by
    State/Territory
Table VIII. 1: Funds Authorized and Appropriated for the                       69
    Homeless Veterans Reintegration Projects
Table VIII.2: Homeless Veterans Reintegration Projects-                        69
    Funds Provided for Fiscal Year 1989 by State
Table VIII.3: Funds Authorized and Appropriated for the                        71
    Job Training for the Homeless Demonstration
    Program
Table VIII.4: Job Training for the Homeless                                    72
    Demonstration Program-Funds Provided for Fiscal
    Year 1989 by State
Table IX. 1: Funds Authorized and Appropriated for the                         74
    Interagency Council on the Homeless



Page 10                            GAO/RCED-90-52   Status of McKinney   Act Funds
.
              Contents




    Figixre   Figure 1: Funding for Homeless Assistance Programs by
                  Category of Assistance, 1987-89

              Abbreviations
              ADAMHA Alcohol, Drug Abuse, and Mental Health Administration
              AFDC     Aid to Families With Dependent Children
              AIDS/HIV Acquired Immunodeficiency Syndrome/Human
                             Immunodeficiency Virus
              CCNV       Community for Creative Non-Violence
              CDBG       Community Development Block Grant
              CHAP       Comprehensive Housing Assistance Plan
              CSBG       Community Services Block Grant
              DCHV       Domiciliary Care for Homeless Veterans
              EFS        Emergency Food and Shelter (Program)
              EHP        Emergency Community Services Homeless Grant Program
              ESG        Emergency Shelter Grants (Program)
              ETA        Employment and Training Administration
              FEMA       Federal Emergency Management Agency
              GAO        General Accounting Office
              GSA        General Services Administration
              HCMI       Homeless Chronically Mentally Ill (Veterans Program)
              HRSA       Health Resources and Services Administration
              HHS        Department of Health and Human Services
              HUD        Department of Housing and Urban Development
              HVRP       Homeless Veterans Reintegration Project
              NIAAA      National Institute on Alcohol Abuse and Alcoholism
              OCS        Office of Community Services
              PHA        Public Housing Authority
              RFP        request for proposal
              SAFAH      Supplemental Assistance for Facilities to Assist the Homeless
                             (Program)
              SHDP       Supportive Housing Demonstration Program
              SRO        single-room occupancy
              TEFAF'     Temporary Emergency Food Assistance Program
              THDP       Transitional Housing Demonstration Program
              VA         Department of Veterans Affairs
              VAMCs      Department of Veterans Affairs Medical Centers
              VISTA      Volunteers in Service to America




              Page 11                             GAO/RCED-90-62   Status of McKinney   Act Funds
 App&dix I

 Authorizations and Appropriations for
 MC Kinney Act Programs, F’iscalYears 1987-89


Dollars in millions
                                                                                                             1987                       1988                         1989
!YPf!...                                                       II .._._..
                                                                      _..._.._.._-                       Auth.O Appro.b             Auth.a Appro.b               Auth.8 Appromb
Department
___.. -..I---.-- of Housing and Urban Development
  Comprehensive Homeless Assistance Plans                                                                    NAC        NAG            NAG          NAG             NAG              NAC
                   Shelter Grants Program                                                                $110.0       $60.0         $120.0         $8.0          $120.0           $46.5
                           Rehabilitation Assistance                                                       35.0        35.0           35.0          0.09           50.0            45.6
  Supportive Housing Demonstration Program
  I .._..t.- .__. .“----
._._                                                                                                       85.0        85.0          100.0         64.3           100.0            80.0
  Sudplemental Assistance for Facilities                                                                   25.0        15.0          25.0           0.0             10.0            0.0
             Sutitotal                                                                                    255.0       195.0         280.0          72.3           280.0           171.5

Federbl   Emergency
  --_-. _.._     ----.--.- Management Agency
           - __..._
    Emergency      Food and Shelter Program
----.-+ .- __....--.----                                                                                  85.0        125.0e        124.0        114.0            129.0           126.0"
             Suljtotal                                                                                    85.0        125.0         124.0        114.0            129.0           128.0

Department of Health and Human Services
.__.         ‘.-..            +.“---                   -.-......                   ---.--



_.
   Demonstration Projects for Alcohol and Drug Abuse
       -.-           ._       I....              _,                _   .“..-           _-...
                                                                                                           10.0         9.2’           0.09         0.09           14.0              4.5'
__.
   Mental Health Services Demonstration Projects
              -       _._..            -   .-.-.....                   -_----_-.
                                                                                                           10.0         9.3’           0.09         0.09           11.0              4.6'
                                                                                                                                         h         11.5’
   Mental Health Services Block Grant                                                                      35.0        32.2'                                       35.0             14.1'
   Emergency
 ..-. ._ ;           Community
                -~..-.-___-      -~.- Services Homeless Grant Program                                      40.0        36.6           40.0         19.1’           42.0             18.9’
   Health     Care    for   the   Homeless Program                                                         50.0        46.0           30.0         14.3'           61.2             14.8'
__.-.__....
         f.-.- ..“. _“~“_
                        . ..--..-_
                                --.~-
   Emergency Assistance Demonstration Program                                                                     d           d              d            d                d               d
__.-- .~-- .
         Subtotal -~‘--.---                                                                              145.0        133.3           70.0        44.9            183.2            58.9

Department of Veterans Affairs
  Homeless Chronically Mentally Ill Veterans                                                               5.0         10.oe           6.0          0.09           36.0'            13.3
---._ ,....- -.....-...__
                        -.._” -.
  Domiciliary Care for Homeless Veterans                                                                  15.0         15.0            0.09         0.0s                  I          0.09
       -..-...* __....
                    --~_-..-_
         Subtotal                                                                                         20.0        20.0             8.0          0.0            38.0            13.3

Department of Education
    Adwlt Education for the Homeless
--.--A -- __....---.                                                                                        7.5         6.9           10.0          7.2'           10.0              7.1'
___.
    Education
    --c_ .___
                 for Homeless Children and Youth
           --.-_.-___
                                                                                                            5.0         4.6            5.0          4.6             5.0              4.8
    Exemplary Education Grants                                                                              0.0         0.0            2.5          0.0             2.5              0.0
         Subtotal                                                                                         12.5         11.5          17.5         11.8             17.5            12.0

Department of Labor
  Homeless Veterans Reintegration Projects                                                                 0.0          0.0           2.0'          1.9’            2.2'            1.9’
  Job Training Demonstration Program                                                                       0.0          0.0          10.0           7.6            10.8             7.6
 ___..._...-._.^._.
                 ---.~-._.--._______.
         Subtotal                                                                                          2.0          0.0          12.0           9.5            13.0             9.5
                                                                                                                                                                       (continued)




                                                                                               Page 12                            GAO/RCED-90-52     Status of M&hey          Act Funds
                                  Appendix I
                                  Authorlzatious and Appropriatione for
                                  McKinney Act Programa, Fiscal Years 1987438




                                                              1987                             1988                           we9
Agent                                                     Auth.’ Approsb                   Auth.’ Appro.b                 AM.’    Appro.b
    -&-F, dent Council
lndepe
 _.___
                                                             0.2           0.0                 2.5        0.95s                  1.1          1.1
                                                             0.2           0.0                 2.5        0.95               1.1              1.1

General Services Administration
                            -~
                                                              NAC          NAC                 NAC          NAC              NAC              NE

Total ~                                                   $517.7      $484.8              $512.0      $253.45            $839.8           $390.3
                                  Note: Grand total authorized: $1.7 billion. Grand total appropriated: $1 .l billion.
                                  aAuth.= authorized.

                                  bAppro.= appropriated.

                                  CNA = Not applicable.
                                  uThis program was not authorized until fiscal year 1990.
                                  eThis figure includes funds transferred from other appropriation accounts.

                                  ‘The appropriation for this program was contained in a larger lump-sum amount.

                                  sNo funds were specifically earmarked for this program, but a lump-sum appropriation was available for
                                  it and other authorized activities.

                                  hPublic Law 100-77 authorized “such sums as may be necessary.”

                                  ‘These funds were earmarked in authorizations and appropriations for the Department of Labor’s Job
                                  Training for the Homeless Program.

                                  IPublic Law loo-628 provided $30 million as a joint authorization for both Department of Veterans Affairs’
                                  homeless assistance programs.




                                  Page 13                                               GAO/RCED-9042        Status of &Kinney         Act F’unda
Appendix II                                                                                                    I
L&gislative History of the Stewart B. McKinney
HomelessAssistance Act

                         In the early 198Os,the plight of the nation’s   homeless began receiving
                         increased attention. As homeless individuals    became more visible and
                         public awareness of their problem grew, the     Congress began debating
                         the question of how active a role the federal   government should play in
                         helping the homeless.

                         The 100th Congress responded to the problem of homelessness in June
                          1987 by enacting the Stewart B. McKinney Homeless Assistance Act
                         (P.L. 100-77). The McKinney Act was Congress’response to concerns
                         about both the urgency of the homelessness crisis and the diverse needs
                         of the homeless. The McKinney Act was the first comprehensive home-
                         less assistance law. Prior to the act, federal support to alleviate the
                         problems of the homeless had been largely targeted to meeting their
                         immediate needs for food and shelter through various agencies and
                         programs.


                         In December 1982, the House Committee on Banking, Finance and Urban
Early Efforts Focus on   Affairs held the first major hearing to examine the appropriate role for
Emergency Food and       the federal government to assist homeless individuals and explored the
Shilter
  /
        Assistance       efforts at the state and local level. Advocates on behalf of the homeless,
                         representatives of private voluntary organizations providing food and
                         shelter, and state and local officials expressed strong support for
                         greater federal involvement.

                         Shortly thereafter, the Congress enacted the Emergency Jobs Appropri-
                         ation Act (P.L. 98-8) in response to the high unemployment rates during
                         the winter of 198283. This law provided additional funds to public
                         works and income transfer programs such as the Women, Infants, and
                         Children’s Supplemental Nutrition Program and unemployment insur-
                         ance assistance. It also created an emergency shelter program specifi-
                         cally to aid the homeless, appropriating $60 million to the Federal
                         Emergency Management Agency (FEMA) to distribute to public and pri-
                         vate organizations providing emergency food and shelter. The Emer-
                         gency Food and Shelter (EFS) Program was created because of reports
                         that emergency service providers in both the private charitable and
                         local government sectors were overwhelmed by the demand for services
                         to the hungry and homeless. FEM’S EFSprogram continued to receive
                         appropriations for the next 4 years, including $40 million in November
                         1983, $70 million in August 1984 (which extended the program into fis-
                         cal year 1985), an additional $20 million in 1985, and $70 million in fis-
                         cal year 1986.



                         Page 14                             GAO/RCED-90-52   Status of McKinney   Act Funds
                        AppmUxII
                        Legislative History of the Stewart B.
                        MeKinney Homeless Assistance Act




                        Recognizing an increase in the number of individuals needing food assis-
                        tance, the Congress added a provision to the Emergency Jobs Appropri-
                        ations Act to expand a Department of Agriculture program that
                        provided surplus commodities for low-income households-the Tempo-
                        rary Emergency Food Assistance Program (TEFM). TEFAPprovided sur-
                        plus commodities such as cheese, butter, nonfat dry milk, rice, flour,
                        honey, and cornmeal, packaged in l- to 5-pound quantities, to homeless
                        shelter providers.

                        Continuing these federal efforts, the Secretary of Housing and Urban
                        Development, in February 1983, announced his intention of “expediting
                        the use of Community Development Block Grant (CDBG)" funds to meet
                        the needs of the homeless as identified by local communities. This
                        resulted in efforts to notify CDBGgrantees about the possible uses of this
                        money for such things as acquiring and rehabilitating buildings to be
                        used as shelters for the homeless. By January 1985, the Department of
                        Housing and Urban Development (HUD) reported that $53 million in CDBG
                        funds had been used to help the homeless over the previous 2 years
                        (1983 and 1984).

                        In October 1983, an interagency task force was created in the Depart-
                        ment of Health and Human Services (HHS) to cut red tape and act as a
                        “broker” between the federal government and the private sector for
                        making available federal facilities that might be used to assist the home-
                        less, During that same year, the General Services Administration (GSA)
                        agreed that the Community for Creative Non-Violence (CCNV), a Wash-
                        ington, D.C.-based advocacy group and shelter provider, could establish
                        an 800- to l,OOO-bed shelter in an empty building on a temporary basis,
                        which later was provided to CCNV on a permanent basis to establish a
                        model shelter for the homeless in Washington, D.C. In fiscal year 1984,
                        the Congress earmarked $8 million of the Department of Defense’s
                        appropriation to make military facilities available to house the
                        homeless.


                        In October 1986, the Congress adopted the Homeless Housing Act of
Le$islation Goes        1986 (Conference Report H.R. 5313, enacted by section 101(g) of P.L.
Beyond Emergency        99-591). This law defined the homeless as “families and individuals who
Needs of the Homeless   are poor and have no access to either traditional or permanent housing.”
                        The act provided $15 million to HUD to be distributed between an emer-
           ”            gency shelter grant program and a program to fund demonstration
                        projects to provide transitional housing for homeless persons (HUD'S
                        Emergency Shelter and Supportive Housing Programs). The transitional


                        Page 15                                 GAO/RCED-99-62   Status of McKinney   Act Funds
                       Appendix II
                       Legislative History of the Stewart B.
                       McKinney Homeless Assistance Act




                       housing program grew out of the concern that homeless persons needed
                       assistance to leave the shelters, find permanent housing, and lead inde-
                       pendent lives. Transitional housing funds could also be used to provide
                       supportive services, such as assistance in obtaining permanent housing,
                       medical care, psychological counseling, and employment assistance.

                       In addition to providing federal funds for more permanent shelter, the
                       Congress sought to assist the homeless through the modification of
                       existing laws to allow homeless persons easier access to existing federal
                       entitlement programs. For example, the Food Security Act of 1985 (P.L.
                       99-198) contained a provision directing state agencies administering the
                       Food Stamp Program to develop a method of certifying and issuing cou-
                       pons to eligible households that do not reside in permanent dwellings or
                       who do not have fixed mailing addresses. In addition, the Congress
                       enacted the Homeless Eligibility Clarification Act (P.L. 99-570) in Octo-
                       ber 1986, which provided for the delivery of identification cards, pay-
                       ments, and benefits provided by the Food Stamp, Medicaid, Aid to
                       Families With Dependent Children, and Supplemental Security Income
                       Programs to persons who do not reside in permanent dwellings and who
                       have no fixed mailing addresses, The law also made homeless individu-
                       als eligible for assistance under federal veterans assistance programs
                       and the Job Training Partnership Act.


                       Although by 1987 congressional actions had expanded the federal role
100th Congress         to assist the homeless through various agency programs, many believed
Expands Homeless       that a more comprehensive effort was needed. Thus, when the 100th
Assistance Programs,   Congress convened in January 1987, legislative proposals to expand
                       assistance to the homeless were among the first items on the agenda.
Enacts the McKinney
Act (P.L. 100-77)      One of the first actions the 100th Congress took was to enact an emer-
                       gency appropriation measure for FEMA'SEFSProgram. In February 1987,
                       the Congress enacted a law (P.L. 100-6) transferring $60 million from
                       FEMA'Sdisaster relief program to the EFSProgram. In addition, $5 million
                       of the $50 million transferred to FEMAwas appropriated to the Depart-
                       ment of Veterans Affairs (VA) for its Homeless Chronically Mentally Ill
                       Veterans Program, a community-based psychiatric residential treatment
                       program for veterans.

                       In 1987 the Congress introduced several bills to broaden the federal role
                       in helping the homeless. The legislation that eventually became law was
                       H.R. 668, the Urgent Relief for the Homeless Act, introduced by Repre-
                       sentative Thomas Foley on January 8,1987, and cosponsored by 110


                       Page 16                                 GAO/RCED-90-62   Status of McKinney   Act Funds
                      Appendix IL
                      LegNative History of the Stewart B.
                      McKinney Homeless Aasietance Act




                      Members of Congress. H.R. 668 authorized several programs involving
                      various federal agencies. Programs included (1) health care; (2) commu-
                      nity-based mental health services for homeless individuals who are
                      chronically mentally ill; (3) emergency shelter; (4) transitional housing,
                      especially for the elderly and homeless families with children; (5) com-
                      munity services to provide follow-up and long-term services; (6) job and
                      literacy training; (7) permanent housing for handicapped homeless per-
                      sons; and (8) grants for groups to renovate, convert, purchase, lease, or
                      construct facilities. In response to concerns that overall responsibility
                      for homelessness programs was spread among several agencies, the Con-
                      gress created the Interagency Council on the Homeless, an independent
                      council to coordinate federal homeless assistance programs.

                      Hearings on H.R. 558 were held in February 1987, after which both the
                      House and Senate moved quickly to pass separate homeless assistance
                      packages. On March 5,1987, the House passed H.R. 558; on April 9,
                      1987, the Senate amended and passed H.R. 658. In June, both the House
                      and Senate approved the conference report, and the President signed the
                      McKinney Act (P.L. 100-77) on July 22, 1987. Public Law 100-77 autho-
                      rized programs for fiscal years 1987 and 1988. The legislation was enti-
                      tled in honor of the dedication and work for homeless and
                      disadvantaged persons put forth by Representative Stewart B. McKin-
                      ney of Connecticut, who died on May 7,1987.

                      Public Law 100-77 authorized a total of 20 homeless assistance pro-
                      grams for fiscal years 1987 and 1988, including the Surplus Property
                      Program, the Interagency Council on the Homeless, and a requirement
                      for submitting a comprehensive planning document to apply for HUD'S
                      programs. The legislation also extended the TEFAPprogram until Septem-
                      ber 30, 1988, and expanded the commodities available for distribution
                      under this program. The law also amended the Food Stamp Act of 1977,
                      allowing federal funding for state outreach efforts to provide informa-
                      tion to homeless persons about applying for food stamps.


                      During the second session of the 100th Congress, the McKinney Act was
The McKinney Act Is   reauthorized for fiscal years 1989 and 1990 (P.L. 100-628). The
Reauthorized (P.L.    reauthorization included funding authority for a total of 21 homeless
100-628)      -       assistance programs. This included extending the Surplus Property Pro-
                      gram and the Interagency Council on the Homeless, and keeping HUD'S
          Y
                      homeless assistance planning document requirement. It also authorized
                      funds for two VA medical programs for homeless veterans and a program
                      to aid homeless families who receive Aid to Families With Dependent


                      Page 17                               GAO/RCED-90-62   Status of McKinney   Act Funds
Appendix II
Legislative History of the Stewart B.
McKinney Homeless Assistance Act




Children (AFDC)benefits. In addition, two programs previously included
under the original McKinney Act were removed from the act and
reauthorized under the Hunger Prevention Act (P.L. lOO-435)-TEFAP
and the Food Stamp Outreach Program.

On March 3 1, 1988, Representative Bruce Vento introduced H.R. 4352 to
reauthorize the McKinney Act programs. The House approved this legis-
lation on August 3,1988, and the Senate approved an amended version
on September 28. In reauthorizing the McKinney Act, the House consid-
ered and rejected, by a slim margin, an amendment to convert the HUD
homeless assistance programs to a block grant. The conference report on
the legislation was approved in October, and the President signed the
bill (P.L. 100-628) into law on November 7, 1988.




Page 18                                 GAO/RCED-W-62   Status of McKinney   Act Funds
I Appendix III

 HomelessAssistance Programs of the
 D&partment of Housing and
 Urban Development
                         This appendix provides information on the following McKinney Act
                         homeless assistance programs administered by HUD: Comprehensive
                         Homeless Assistance Plan (CHAP),Emergency Shelter Grants (IL%), Sec-
                         tion 8 Moderate Rehabilitation Program for Single-Room Occupancy
                         (SRO)Dwellings for Homeless Individuals, Supportive Housing Demon-
                         stration Program (SHDP),and Supplemental Assistance for Facilities to
                         Assist the Homeless (SAFAH).



 Co@prehensive
 Hopeless Assistance
 Plain

 Description of the      The Comprehensive Homeless Assistance Plan is a document that must
 Requirement             be submitted annually by any state, city, or urban county applying for
                         funds under HUD'Shomeless assistance programs. These programs, dis-
                         cussed later in this appendix, include the ESGProgram, the Section 8
                         Moderate Rehabilitation for SRODwellings for Homeless Individuals Pro-
                         gram, the SHDP,and the SAFAHProgram.

                         CHAP'Spurpose is to require state and local jurisdictions to examine their
                         existing facilities and resources for providing homeless assistance,
                         assess the special needs of the existing homeless population, and then
                         develop a strategy by which federal homeless assistance programs can
                         supplement or expand on already available services. Each CHAPmust be
                         approved by HUD before a state or local jurisdiction can apply for funds
                         under HUD'Shomeless assistance programs.

                         A CHAPmust provide the following information:

                       . An explanation of the need for assistance provided by any or all of
                         HUD'Shomeless assistance programs.
                       . A brief inventory of the facilities and services that assist the homeless
                         in that particular jurisdiction.
                       . The jurisdiction’s strategy to match the needs of its homeless population
                         with the existing services and facilities as well as to recognize special
                         needs of certain groups such as the elderly or veterans.
                       . An explanation of how the homeless assistance sought from HUD will
                         complement the services already provided by the jurisdiction.




                         Page 19                             GAO/RCED-90-52   Status of McKinney   Act Funds
                           Appendix III
                           Homelese Aes&ance Programs of the
                           Department of Housing and
                           Urban Development




                         . Assurances that each grantee will administer, in good faith, a policy
                           designed to ensure a drug- and alcohol-free facility.
                         . The name, address, and telephone number of a person who will provide
                           a single point of contact for information regarding the contents of the
                           CHAP.

                           In addition to the above requirements, the states must provide a descrip-
                           tion of how they will coordinate any job-training demonstration pro-
                           grams provided under the Department of Labor’s homeless assistance
                           programs (see app. VIII) with the state’s other homeless services. States
                           must also exchange their CHAP with local jurisdictions to improve coordi-
                           nation of state and local assistance. Also, each jurisdiction that has an
                           approved CHAPmust annually review its progress toward implementing
                           the plan and submit a report on its progress. The report must respond to
                           any recommendations made by HUD regarding the jurisdiction’s
                           performance.

                           CHAPS  are due to the responsible HUD field office, where they are
                           reviewed for approval, by October 1 of each year.’ Annual performance
                           reports are required by May 31 of each year and cover the period
                           between the last report and April 30 of the reporting year.



Eniergency Shelter
Grbnts Program

Ho\ivthe Program Works     EGGallocates funds to help improve the quality of emergency shelters
                           for the homeless; make available additional emergency shelters; and
                           meet the costs of operating emergency shelters and providing essential
                           social services to homeless individuals, including activities to prevent
                           homelessness. Projects funded under this program may use the money
                           for (1) renovating, rehabilitating, or converting buildings for emergency
                           shelters; (2) paying for maintenance, certain operating expenses, insur-
                           ance, utilities, and furnishings; and (3) preventing homelessness by pro-
                           viding financial assistance to eligible families to help pay utility
                           services, security deposits, or back rent. In addition, up to 20 percent of
                           FFGfunds may be used to provide essential social services including
                           employment assistance, health care, drug abuse treatment, or education.


                           ‘In fiscal year 1989, CHAPS were due to HUD by Feb. 13,1989.



                           Page 20                                        GAO/RCED-90-62   Status of McKinney   Act Funds
                       Appendix KU
                       Homeless Assistance Programs of the
                       Department of Housing and
                       Urban Development




                       Each recipient of ESGfunds must match the federal share on a dollar-for-
                       dollar basis.


Dedision Process for   As required by the McKinney Act, HUD uses the Community Develop-
Prqviding Funds        ment Block Grant formula to determine which states, metropolitan cit-
                       ies, urban counties, and territories are eligible to apply for the program
   I                   funds and how much each of them will receive.
   !
                       The CDBGformula is really two formulas, and state and local jurisdic-
                       tions are entitled to an allotment based on the one which yields the
                       larger amount of money. The first formula consists of weighted factors
                       of the jurisdiction’s population, population below the poverty level, and
                       the number of housing units in each jurisdiction with one or more per-
                       sons per room. The second is based on weighted factors of the jurisdic-
                       tion’s population in poverty, the number of pre-1940 housing units, and
                       a jurisdiction’s lag in population growth rate.

                       Allocations are divided into two categories: funds that go directly to the
                       states and funds that go directly to localities in each state. Cities or
                       counties that did not qualify to receive JBG funds directly may obtain
                       funds from the amount provided to the state. While states must dis-
                       tribute all of their funds to local governments and/or private nonprofit
                       organizations (whose projects are approved by the local government),
                       local governments have the option of distributing all or only a portion of
                       their funds.

                       To receive funding, a state, urban county, or metropolitan city must sub-
                       mit an application as well as develop, and have approved by HUD, a CHAP
                       which includes a description of the need for assistance under the ESG
                       program and the manner in which ESG assistance will complement home-
                       less services already available. Nonprofit organizations are not required
                       to prepare a CHAP.

                       HUD reallocates funds originally allocated to those states, territories, cit-
                       ies, and counties that fail to have their request for FSGfunds or their
                       CHAPapproved.

                       Table III.1 shows the amount of money authorized and appropriated for
                       fiscal years 1987-89. Table III.2 shows the total amount of funds pro-
                       vided for fiscal year 1989 by state/territory (including the District of
                       Columbia and the Commonwealth of Puerto Rico).



                       Page 21                               GAO/RCED-90-62   Status of McKinney   Act Funds




                                                .X
                                         Appendix III
                                         Homeless Assistance Programa of the
                                         Department of Housing and
                                         Urban Development




Table 1;ll.l: Funds Authorized and
Approbriated for the Emergency Shelter   Dollars in millions
Grantd Program                                                                                     Fiscal year
                                         Funding                                      1987             1988               1989
                                         Authorized                                   $110             $120              $120.0
                                         Appropriated                                   60                8                46.5


Table 1~11.2:
           Emergency Shelter Grant8
Progrqm-Funds Provided for Fiscal        State/territory*                                                              Amount
Year 1989 by State/Territory             Alabama                                                                       $742,000
                                         Alaska                                                                           51,000
                                         American Samoa                                                                   12,000
                                         Arizona                                                                        450,000
                                         Arkansas                                                                       387,000
      I                                  California                                                                   4,740,ooo
                                         Colorado                                                                       410,000
                                         Connecticut                                                                    541,000
                                         Delaware                                                                       101,000
                                         District of Columbia                                                           261,000
                                         Florida                                                                      1,874,OOO
                                         Georara                                                                        968,000
                                         Guam                                                                             37,000
                                         Hawaii                                                                         215,000
                                         Idaho                                                                          116,000
                                         Illinois                                                                     2,503,OOO
                                         Indiana                                                                        917,000
                                         Iowa                                                                           531,000
                                         Kansas
                                         ----              --                                                           365,000
                                         Kentuckv                                                                       675,000
                                         Louisiana
                                         _I______---.                                                                   883,000
                                         Maine                                                                          225,000
                                         Maryland
                                         ~-                                                                             749,000
                                         Massachusetts                                                                1,406,OOO
                                         Michigan                                                                     1,860,000
                                         ~--
                                         Minnesota
                                         ______---.                                                                     754,000
                                         Mississiooi                                                                    512,000
                                         Missouri                                                                       985,000
                                         Montana                                                                        108,000
                                         ____.--____-
                                         Nebraska                                                                       250,000
                                         Nevada                                                                         117,000
                     Y
                                                                                                                        144,000
                                         -.New Hampshire
                                         New Jersey                                                                   1,506,OOO
                                                  --
                                                                                                                    (continued)



                                         Page 22                               GAO/RCED90-52   Status of McRinney    Act Funds
                        Appendix III
                        Homeless Aselstanw Pcogranw of the
                        Department of Housing and
                        Urban Development




                        State/territory*                                                                                 Amount
                        New Mexico                                                                                       213,000
                        New York                                                                                       4,908,Ooo
                        North Carolina                                                                                   853,000
                        North Dakota                                                                                      94,000
                        Ohio                                                                                           2,184,OOO
                        Oklahoma                                                                                         395,000
                        Oregon                                                                                           378,000
                        Pennsylvania                                                                                   3,017,000
                        Puerto Rico                                                                                    1,626,0L%
                        Rhode Island                                                                                     225,000
                        South Carolina                                                                                   517,000
                        South Dakota                                                                                     114,000
                        Tennessee                                                                                        751,000
                        Texas                                                                                          2,788,OOO
                        Utah                                                                                             248,000
                        Vermont                                                                                           89,z
                        Virgin Islands                                                                                    32,000
                        Virginia                                                                                         765,000
                        Washington                                                                                       668,000
                        West Virginia                                                                                    344,000
                        Wisconsin                                                                                        838,000
                        Wyoming                                                                                           48,000
                        Total                                                                                       $46,490,000
                        aThese amounts are a total of funds provided directly to the state or territory, plus those provided
                        directly to localities in the states.




Se’ction8 Moderate
Rehabilitation
Program for Single-
Room Occupancy
Dwellings for
HomelessIndividuals

&nv the Program Works   This program is designed to provide funds for moderate rehabilitation to
           *            owners of rehabilitated SRO housing through rental assistance to home-
                        less persons residing in these buildings. An SRO is a one-room unit in a
                        multiunit structure. It is occupied by a single, eligible individual capable



                        Page 23                                             GAO/RCED&O-52       Status of McKinney     Act Funds
                           AppendixIII
                           HomelessAssistanceProgramsof the
                           Departmentof Housingand
                           Urban Development




                           of independent living. Under the McKinney Act, homeless individuals
                           have highest priority for occupancy in SROunits, although other individ-
                           uals would be eligible to live in these units as well.

                           Under this program, a building owner who rehabilitates a substandard
                           property for SROunits receives guaranteed Section 8 rental assistance
                           for the tenants. A Public Housing Authority (PHA) pays the owner the
                           difference between the fair market rent of a unit and that portion pay-
                           able by the tenant, which is 30 percent of a tenant’s adjusted annual
                           income. In such projects, the monthly rent for each unit includes, among
                           other things, the rehabilitation costs borne by the owner.

                           HUD and a PHA enter into an annual contribution contract that guaran-
                           tees the availability of funds for rental assistance and for the PHA’S
                           administrative costs. Once a housing authority secures a contract from
                           HUD, it then executes a contract with the owner. The contract establishes
                           the conditions under which rental assistance will be paid following the
                           completion of the rehabilitation. PHASmust also engage in an active out-
                           reach effort in order to make known the availability of the program to
                           homeless persons and ensure that needed supportive services are
                           provided.


DecilsionProcess for       HUD makes this funding available through a competitive process to those
Providing Funds            PHASwhich best demonstrate a need for the assistance and the ability to
                           undertake and carry out the program. In applying to this program,            PHAS
                           must

                       . describe the size and characteristics of the population within their juris-
                         diction that would occupy SROdwellings;
                       l list additional commitments from public and private sources that they
                         might be able to provide in connection with the program;
                       l provide a description of suitable housing stock to be rehabilitated with
                         such assistance; and
                       . describe the interest that has been expressed by builders, developers,
                         and others in participating in the program.

                           PHASmust also submit additional information on such things as sched-
                           uled completion dates for project development, their experience in
                           administering Section 8 assistance and other assisted housing rehabilita-
                           tion programs, and the type of financing the owner will use.




                           Page 24                             GAO/RCED-90-52   Status of McKinney   Act Funds
                                           Appendix IU
                                           Homeless Aeebtance Progcww        of the
                                           Department of Homdng and
                                           Urban Development




                                           Once HUD receives the applications, it conducts an environmental review
                                           on all of them and ranks the applications on the basis of a combination
                                           of factors such as the need for assistance as demonstrated by the PHA
                                           and the PHA’Sability to undertake the project. The highest ranked
                                           projects are the ones that receive funding.

                                           Table III.3 shows the amount of money authorized and appropriated for
                                           this program for fiscal years 1987-89. Table III.4 shows the total amount
                                           of funds provided for fiscal year 1989 by state/territory.

Tabi+ 111.3:Funds Authorized and
Appr(opriated for the Section 8 Moderate   Dollars in millions
Rehgbilitation Program for Single-Room                                                                               Fiscal year
Occ$pancy Dwellings for Homeless           Funding                                                     1987              1988                1989
lndididuais
                                           Authorized                                                   $35                $35                $50
                                           Appropriated                                                  35                  0”                45
                                           aNo funds were specifically earmarked for this program. However, P.L. loo-202 provided $496 million for
                                           HUD’s Section 8 Moderate Rehabilitation Program which, to the extent of the $35 million authorization,
                                           could have been used for the Section 8 SRO Program.


Tabig 111.4:Section 8 Moderate
Rehebiiitation Program for Single-Room     State                                                                                         Amount
Occbpancy Dwellings for Homeless           Arizona                                                                                    $1,492,080
Indiyiduais-Funds    Provided for Fiscal                                                                                               3,816,OOO
                                           California
Yeai 1989 by State
                                           Florida                                                                                     4,486,320
                                           Kentucky                                                                                      665,280
                                           Louisiana                                                                                   1,407,600
                                           Maryland                                                                                      253,200
                                           Massachusetts                                                                               2,963,520
                                           Minnesota                                                                                   2,970,ooo
                                           New York                                                                                    1,025,280
                                           Oregon                                                                                      4,887,840
                                           Rhode Island                                                                                3,758,400
                                           South Carolina                                                                              3,772,800
                                           Tennessee                                                                                     456,960
                                           Texas                                                                                       2,798,400
                                           Vermont                                                                                     1,306,800
                                           Virginia                                                                                    1,330,320
                                           Washington                                                                                  4,268,160
                                           West Virginia                                                                               1,628,160
                                           Wisconsin                                                                                   1,709,040
                                           Total                                                                                    $44,998,180




                                           Page 25                                           GAO/RCED-90-82      Status of MeKinney    Act Funds
                            Appendix IlI
                            Homeless Assistance Programs of the
                            Department of Housing and
                            Urban Development




Supportive Housing
Dertponstration
Pro&am

Howethe Program Works       SHDPmakes funds available to state, local, and nonprofit organizations
                            for projects providing housing and supportive services to homeless per-
                            sons, including those with special needs such as the handicapped. The
                            program provides funds for two types of assistance: (1) transitional
                            housing to facilitate the movement of homeless individuals to indepen-
                            dent living and (2) permanent housing for handicapped homeless per-
                            sons. The program serves homeless individuals, deinstitutionalized
                            homeless individuals, individuals with mental disabilities, families with
                            children, and families where the head of the household is mentally ill.


Transitional Housing        The Transitional Housing Demonstration Program (THDP) is designed to
Dempnstration Program       develop innovative approaches to help homeless persons make the tran-
                            sition into independent living by providing them with housing and sup-
                            portive services. It serves families with children and individuals with
                            mental disabilities for up to 24 months. The support services provided
                            range from employment assistance, job training, and job placement to
                            mental health care, child care, and case management. In addition, some
                            projects also provide legal assistance, child care, and transportation to
                            and from work sites.

                            The program provides assistance for

                        . advances of up to $200,000 (or up to $400,000 in high-cost areas) to
                          cover the costs of acquisition, and substantial rehabilitation or moderate
                          rehabilitation of existing structures, including repayment of outstanding
                          debt, subject to a dollar-for-dollar match from nonfederal sources;
                        . grants of up to $200,000 ($400,000 in high-cost areas) for moderate
                          rehabilitation of existing structures, subject to a dollar-for-dollar match
                          from nonfederal sources;
                          up to 75 percent (50 percent in fiscal year 1989) of the operating costs
                          of a transitional housing project;
                          technical assistance in establishing and operating transitional housing
                          and providing supportive services to the residents; and
                          grants for establishing and operating an employment assistance pro-
                          gram for the residents of a transitional housing project.



                            Page 26                               GAO/RCED-90-62   Status of McKinney   Act Funds
                               Appendix Ill
                               Homeless Assistance Programs of the
                               Department of Housing and
                               Urban Development




                               Eligible proposals include new projects or the expansion of existing
                               projects. Expansion projects must include a substantial increase in the
                               number of persons served or in the level of supportive services pro-
                               vided, or a substantial change in the use of existing facilities. The recipi-
                               ents of transitional housing grants are required to provide housing and
                               support services for a minimum of 10 years. However, advances are for-
                               given incrementally, and after 20 years of use for supportive housing,
                               there is no obligation to repay any part of the advance.


Delision Process for           Applications received for fiscal year 1989 funds were reviewed jointly
Prtjviding Funds               by the Supportive Housing Demonstration Program staff in HUD head-
                               quarters and staff in HUD'Sregional offices. Eligible applicants include
                               states; metropolitan cities; urban counties; governmental entities, such
                               as public housing authorities; Indian tribes; and private, nonprofit
                               organizations.

                               The application process works as follows. First, in order for an applica-
                               tion to get ranked, applicants must satisfy threshold criteria, which are

                           l   their ability to demonstrate eligibility to receive assistance, including
                               financial responsibility, capacity to carry out activities, and legal
                               authority;
                       9       their ability to match HUD funds with an equal amount from other
                               sources;
                       .       a demonstration that an unmet need for the proposed transitional hous-
                               ing exists in the area to be served;
                       .       a demonstration that no assistance under THDPwill be used to replace
                               funds already being provided by a state or local government assistance
                               program to assist handicapped persons, homeless individuals, or handi-
                               capped homeless persons during the calendar year preceding the date of
                               the application;
                       l       a demonstration of proposal feasibility; and
                       .       an environmental impact review, if appropriate.

                               Applications that fulfill each of the threshold requirements are scored
                               and ranked on the basis of

                       l       an applicant’s relative ability to carry out activities under the program
                               within a reasonable time and in a successful manner;
                       l       the innovative quality of the proposal;




                               Page 27                               GAO/RCED-90-62   Status of McKinney   Act Funds
                              Appendix III
                              Homeless Assistance Programs of the
                              Department of Housing and
                              Urban Development




                          . the extent to which the applicant will use other public or private entities
                            to provide appropriate supportive services to the residents, or if the ser-
                            vices are provided directly by the applicant, the extent to which the
                            applicant will provide the services with funds from other sources or has
                            demonstrated that the services are not available to the residents from
                            other sources;
                          . the extent to which the applicant proposes to match the amount of SHDP
                            assistance on more than a dollar-for-dollar basis;
                          l the cost effectiveness of the program;
                          l the extent to which a proposed project contains an employment assis-
                            tance program; and
                          . the extent to which the applicant has control of the site.

                              In the final stage of the selection process, the highest ranked applica-
                              tions are considered for final selection in accordance with their rank
                              order.


Permanent Housing             The Permanent Housing Program for Handicapped Homeless Persons,
Progkam for Handicapped       which provides the same types of assistance as THDP,funds projects that
                              provide community-based, long-term housing and supportive services
HomielessPersons              for handicapped homeless persons. The program serves mentally and
                              physically disabled individuals, deinstitutionalized individuals, and fam-
                              ilies in which the head of the family is handicapped.

                              Housing projects must either be group homes designed solely for housing
                              handicapped homeless persons or rental units in a multifamily housing
                              project, condominium project, or cooperative project. These housing
                              projects are required to be integrated into the neighborhoods where they
                              are located, and they may not be clustered unless the Secretary waives
                              this requirement. As with the Transitional Housing Program, the recipi-
                              ents of Permanent Housing funds are required to operate the project for
                              at least 10 years.


Decision Process for          Application requirements for this program are basically the same as
Providing Funds               those for the THDP.The primary difference is that the application for
                              permanent housing is prepared by both the state and the organization
                              responsible for administering the project. States apply for funding on
                              behalf of these project sponsors, which are generally private, nonprofit
               ”              organizations. In addition, the 1988 McKinney Act Amendments allowed
                              public housing authorities to be project sponsors.



                              Page 28                               GAO/RCED-90-62   Status of McKinney   Act Funds
                                          Appendix III
                                          Homeless Assistance Programs of the
                                          Department of Housing and
                                          Urban Development




                                          HUD'Sreview process is similar to that done for the Transitional Housing
                                          Program in that applications must first meet the same threshold require-
                                          ments and other ranking criteria. In addition, as part of the threshold
                                          criteria, an applicant must match at least 50 percent of the operating
                                          costs with funds from nonfederal sources. However, for this program,
                                          no more than one-half of their match can come from local sources. The
                                          match can include state and local agency funds, salaries paid to program
                                          staff from a nonfederal source, the value of volunteer time and services,
                                          and donations of buildings and materials. Permanent housing applicants
                                          are not required to establish employment assistance programs.

        I
                                          Table III.6 shows the amounts authorized and appropriated for the pro-
        I                                 gram for fiscal years 1987-89. Tables III.6 and III.7 show the amount of
        I                                 funds provided in fiscal year 1989 to each state (including the District of
                                          Columbia).
        /
        I
Tablej 111.5:Funds Authorized and
Appr+priated for the Supportive Housing   Dollars in millions
Dem&stration Program                                                                                                 Fiscal year
                                          Funding                                                     1987               1988               1989
                                                                                                       $85              $100.0               $100
                                          -Authorized
                                           Appropriated                                                 85                64.3a                 80b
                                          aThe SHDP was appropriated $65 million, but $750,000 was transferred to the Interagency Council on
                                          the Homeless.

    ,                                     bFor fiscal year 1989, HUD had about $110 million to obligate for the SHDP. These additional funds, over
                                          and above their appropriation, resulted from (1) the carryover of unobligated amounts from fiscal years
                                          1987-88 for the Permanent Housing Program (because of an insufficient number of applications) and (2)
                                          recovered funds in THDP from recipients who have been unable to use their funds.


                                          From the total amount of funds appropriated each year for SHDP,the
                                          McKinney Act requires HUD to set aside not less than $15 million each
                                          year for permanent housing for handicapped homeless individuals and
                                          at least $20 million for transitional housing for homeless families with
                                          children.

Table lll.8: Supportive Housing
Demonstration Program-Funds               State                                                                                          Amount
                                          ---..
Provided for Fiscal Year 1989 by State    Alabama                                                                                        $46,822
for transitional Housing                  -._I~-.-
                                          Arizona                                                                                       1,495,605
                                          Arkansas
                                               __--__--                                                                                   892,400
                                          California                                                                                   10,925,716
                                          -_____-.-
                    ”                     Colorado                                                                                      1,806,270
                                          .---
                                          Connecticut                                                                                   3,629,910
                                                                                                                                      (continued)



                                          Page 29                                            GAO/RCED-90-52      Status of McKinney    Act Funds
Appendix III
Homeless Assistance Programs of the
Department of Housing and
Urban Development




State                                                                         Amount
District of Columbia                                                         4,411,525
Florida                                                                      1,345,510
Georgia                                                                        193,710
--
Illinois                                                                     1521,835
Indiana                                                                      21683,767
Iowa                                                                           438,275
Kentucky                                                                       231,250
Louisiana                                                                      226,325
Maine                                                                          302,500
Maryland                                                                     1,686,335
Massachusetts                                                                4,343,914
Michigan                                                                     3,018,500
--
Minnesota                                                                      656,548
Missouri                                                                     3,830,780
New Hampshire                                                                  904,190
New Jersey                                                                   2,389,540
New York                                                                    25,866,264
North Carolina                                                                 155,000
North Dakota                                                                   172,000
Ohio-                                                                        1,486,643
--~--
Oklahoma                                                                       119,120
Oregon                                                                         172,467
 ----
Pennsylvania                                                                 2,575,228
Rhode Island                                                                   686,975
South Carolina                                                                  25,000
--
Tennessee                                                                      892,280
_.__-__--.-.
Texas                                                                        6,902,265
Vermont                                                                        358,595
___-.-.
Virginia                                                                     8,504,338
Washington                                                                   3,857,579
West Virginia                                                                  297,580
Wisconsin                                                                      939,380
Total                                                                   $99,991,941




Page 30                               GAO/RCED-90-62   Status of McKinney   Act Funds
                                          Appendix III
                                          Homeless Assistance Programf4 of the
                                          Department of Housing and
     ,                                    Urban Development




Tebld 111.7:Supportive Houbing
Demc)nstration Program-Funds              State                                                                                    Amount
ProvifJed for Fiscal Year 1989 by State   California                                                                            $1,052,146
for Pfrmanent Housing                                                                                                              185,007
                                          Colorado
                                          District of Columbia                                                                     304,498
                                          Georgia                                                                                  664,692
                                          Illinois                                                                                 449,376
                                          Kentuckv                                                                                 140,011
                                          -I
                                          Maine                                                                                    132,238
                                          Maryland                                                                                 309,284
                                          Michiaan                                                                                 147,025
                                          Mississippi                                                                               31,375
                                          New York                                                                                 706,886
                                          E      Jersey                                                                            308,300
                                          New Hamoshire                                                                          1,279,553
                                          Ohio        ’                                                                            477,720
                                          Oregon                                                                                   107,136
                                          Pennsylvania                                                                           1,120,317
                                          khode Island                                                                             699,076
                                          Texas                                                                                    104,275
                                          --
                                          Vermont                                                                                  158,154
                                          Virginia                                                                                 820,654
                                          Washington                                                                               144,199
                                          --_____-
                                          Wisconsin                                                                                605,267
                                                                                                                                        -
                                          -.___-     ~I_
                                          Total                                                                                 $9,947,189




Sgpplemental
Assistance for
Facilities to Assist the
Homeless

How the Program Works                     SAFAHis designed to provide two types of homeless assistance: (1) com-
                                          prehensive assistance for particularly innovative programs meeting the
                                          immediate and long-term needs of homeless individuals and famil.ies and
                                          (2) additional assistance to projects receiving funds under ESGor SHDP.'
                    w


                                          ‘SAFAH received appropriated funds only in fiscal year 1987. Consequently, this section does not
                                          contain any fiscal year 1989 award information. For descriptions of the EYSGprogram and the SHDP,
                                          see our discussion earlier in this appendix.



                                          Page 31                                         GAO/RCED-fW52     Status of McKhney    Act Funds
                       AppendLx III
                       Homeless Assistance Program.9 of the
                       Department of Housing and
                       Urban Development




                       Comprehensive assistance funds can be used to purchase, lease, reno-
                       vate, or convert facilities to assist the homeless as well as to provide
                       support services. These services include food, child care, assistance in
                       obtaining permanent housing, outpatient health services, employment
                       counseling, nutritional counseling, security arrangements necessary for
                       the protection of residents, and other services deemed essential for
                       maintaining independent living.

                       Assistance provided to augment EN or SHDPfunds can be used to meet
                       the special needs of homeless families with children, elderly homeless
                       individuals, or the handicapped. In addition, these funds can also be
                       used to facilitate the transfer and use of underutilized public buildings
                       to assist homeless individuals. However, this funding may only be made
                       available in connection with (1) a project that has been approved for, or
                       has received money under, the ESGor SHDPprogram; (2) a project for
                       which an application for the ES or SHDPhas been submitted, pending
                       approval, or submitted and denied; and (3) a project for which assis-
                       tance is sought to acquire property to be used for shelters for homeless
                       families with children.

                       Over half of the SAFAHprojects that received fiscal year 1987 funds used
                       them to acquire or renovate space. Eighteen of these projects also pro-
                       vided support services in the areas of health care, education training,
                       counseling, job placement, help with security deposits and utility assis-
                       tance, and transportation services. Many of the projects targeted a par-
                       ticular population; these were mostly families or women with children,
                       especially women who were victims of domestic violence.


Decision Process for   The SAFAHprogram is a competitive grant program for states; metropoli-
Providing Funds        tan cities; urban counties; Indian tribes; and private, nonprofit organiza-
                       tions. Applications are submitted to HUD headquarters, which reviews
                       them in two stages. First, applications seeking comprehensive assistance
                       are reviewed and given first priority for funding. Then, if money
                       remains after funding highly ranked projects in this category of assis-
                       tance, HUD will consider applications that are seeking assistance above
                       that received from the ESGprogram or the SHDP.

                       HUD evaluates applications for both types of assistance in a two-tier pro-
                       cess whereby a set of threshold requirements must first be met before
                       the application is scored for funding purposes. Examples of these
                       requirements include such things as the applicant’s eligibility to receive
                       assistance, the need for the facility or service being funded, and the


                       Page 32                                GAO/RCED-SO-62 Status of MeKinney   Act Funds
                                             Appendix III
                                             Homeless Assistance bograms   of the
                                             Department of Housing and
                                             Urban Development




                                            applicant’s efforts to obtain other local resources with an explanation as
                                            to how these resources are insufficient or unavailable. Having met these
                                            requirements, applications are further judged and scored on other crite-
                                            ria. For projects seeking comprehensive assistance, the criteria are

                                            the extent to which the proposal involves a particularly innovative
                                            program;
                                            the comprehensiveness of the proposal;
                                            the extent to which the applicant will leverage the money received with
                                            other sources;
                                            the applicant’s ability to initiate the proposed activities within a reason-
                                            able time and carry out the project through the term of the proposed
                                            commitment;
                                            the extent to which the proposal reflects a clear understanding of the
                                            needs of the population it will serve; and
                                            whether the proposal is supported by a group coordinating a state or
                                            local response to homelessness.

                                            For projects seeking additional funding for ESGand SHDPprojects, the
                                            criteria are

                                            the applicant’s ability to carry out the proposal in a reasonable amount
                                            of time and throughout the term of the proposed commitment;
                                            the extent to which the activity will address one or more unmet special
                                            needs of homeless families with children, homeless elderly individuals,
                                            or the handicapped;
                                          . the cost effectiveness of the project; and
                                          . whether the project is targeted specifically to homeless elderly individu-
                                            als or families with children.

                                            Environmental reviews may be required for both types of assistance.
                                            The highest ranked projects are those approved for funding.

                                            Table III.8 shows the amount of money authorized and appropriated for
                                            fiscal years 1987-89.

Table 111.8:Funds Authorized and
Appropriated for the Supplemental           Dollars in millions
Asdistance for Fecilitles to Assist the                                                                 Fiscal year
Homeless Program                            Funding                                        1987             1988             1989
                     *                      Authorized                                       $25             $25               $10
                                            Appropriated                                      15               0                 0




                                            Page 33                                 GAO/RCED-90-62   Status of McKhmey   Act Funds
    Appendix III
    Homeless Assistance Programs of the
    Department of Housing and
    Urban Development




    HUD awarded its fiscal year appropriation of $16 million to 45 recipients
    in 29 states. All of the funds were provided to projects seeking compre-
    hensive assistance.




Y




    Page 34                               GAO/RCED-90-62   Status of McKinney   Act Funds
Aphndix   IV

HpmelessAssistance Programs of the Federal
Emergency ManagementAgency

                            This appendix provides a description of FEMA’Shomeless assistance pro-
                            gram-the Emergency Food and Shelter Program.



Erhergency Food and
Sljelter Program

Hdw the Program Works       FEMA'SEFSProgram is designed to get funds quickly into the hands of
                            food and shelter providers to alleviate the most pressing needs of home-
                            less persons. The program is not intended to address long-standing
                            issues of poverty but rather to supplement the current pool of resources
                            available to provide emergency food and shelter assistance. The pro-
                            gram funds the purchase of food, consumable supplies essential to the
                            operation of shelters and mass-feeding facilities, per-diem sheltering
                            costs, small equipment, limited leasing of capital equipment, utility and
                            rental assistance for people on the verge of becoming homeless, emer-
                            gency lodging, and minor rehabilitation of shelter facilities.

                            Providers receiving EFSfunds vary in size and the types of services they
                            provide. Services include emergency shelter, prepared meals, groceries
                            and food vouchers, rental/mortgage assistance, and utility assistance.
                            For the most part, the smaller scale providers (those with average oper-
                            ating budgets between $4,600 and $26,000) mostly supply emergency
                            food assistance such as groceries, food vouchers, or prepared meals; but
                            in several cases, they also provide rent, mortgage, and utility assistance.
                            Some also provide on-site shelter. Medium-to large-scale providers
                            (those with average operating budgets between $91,000 and $1.5 mil-
                            lion) more routinely supply shelter, and rent or mortgage and utility
                            assistance in addition to food assistance.


Decision Process for        The Emergency Food and Shelter National Board, which FEMAchairs,
                            determines the local jurisdictions (and territories) eligible to receive
Providing Funds             funding through a formula which takes into consideration

                        . the most current 12-month national unemployment rate,
                        l the total number of unemployed persons within a civil jurisdiction,’


                            ‘A civil jurisdiction is generally defined as an area with 60,000 or more inhabitants, usually drawn
                            along county lines.



                            Page 36                                           GAO/RCED-90-62      Status of McKinney    Act Funds
    Appendix N
    Homeless Awdetance Programs of the Federal
    Emergency Management Agency




l the total number of individuals below the poverty level within a civil
  jurisdiction, and
. the total population of the civil jurisdiction.

    The National Board consists of representatives from six national chari-
    table organizations: the United Way of America, which serves as the
    National Board’s secretariat and fiscal agent; the Salvation Army; the
    National Council of Churches; Catholic Charities, USA; the Council of
    Jewish Federations, Inc.; and the American Red Cross.

    However, before eligible communities are actually awarded money, they
    must convene a Local Emergency Food and Shelter Program Board. The
    local board determines the programs and local providers which will
    receive the funds, monitors performance, and reports back to the
    National Board as to who the recipients are and how they will use the
    money. Representatives on the local board are, for the most part, affili-
    ates of the voluntary organizations represented on the National Board.
    Local boards are also encouraged to expand participation by inviting or
    notifying other private, nonprofit organizations to serve on the board.

    In addition to funds going directly to eligible local jurisdictions, some EFS
    funds are reserved for state set-aside committees. These committees,
    with compositions similar to the National Board, make allocation recom-
    mendations to the National Board as to which other jurisdictions to fund
    in their respective states. (Jurisdictions that are already receiving
    money directly from the National Board are not exempt from receiving
    additional funding through these state set-aside committees. However,
    emphasis is placed on areas not previously funded.) This arrangement
    allows for greater flexibility and regional expertise in determining
    deserving communities. The National Board makes the final decision and
    directly awards the money to these additional jurisdictions.

    Table IV. 1 shows the amount of money authorized and appropriated for
    fiscal years 1987-89 for the Emergency Food and Shelter Program. Table
    IV.2 shows the amount of funds provided for fiscal year 1989 by state/
    territory (including the District of Columbia and the Commonwealth of
    Puerto Rico).




    Page 36                                      GAO/RCED-!W52   Status of McRinney   Act Funds
   .
                                          Appendix IV
                                          Homeless Assistance Programs of the Federal
                                          Emergency Management Agency




TabId IV.1: Fundo Authorized and
Apprbpriated for the Emergency Food       Dollars in millions
and $helter Program                                                                                                  Fiscal year
                                          Funding                                                     1997               1980               1989
                                          Authorized                                                    $85               $124               $129
                                          Appropriated                                                   80a               114                114b
                                          aThe EFS Program actually had $125 million available to spend in fiscal year 1987. In addition to its
                                          appropriation, P.L. 100-6 transferred $45 million to the program from FEMA’s Disaster Relief Program.

                                          bThe EFS Program actually had $126 million available to spend in fiscal year 1989. In addition to its
                                          appropriation, P.L. 101.45 transferred $12 million to the program from HUD’s Urban Development Action
                                          Grants Program.


TabIf) IV.2: Emergency Food and Shelter
Program-Funds Provided for Fiscal         State/territory’                                                                               Amount
Year/ 1989 by State/Territory             Alabama                                                                                     $2,478,256
                                                                                                                                           __-
                                          Alaska                                                                                         409,689
                                          American Samoa                                                                                  74,395
                                          Arizona-                                                                                     1,864,706
                                          Arkansas                                                                                     1,393,455
                                          California                                                                                  14,438,227
                                          Colorado                                                                                     2,036,437
                                          Connecticut                                                                                    905,367
                                          Delaware                                                                                        272,932
                                          District of Columbia                                                                            375,680
                                          Florida                                                                                       5,723,930
                                          .--___
                                          Georgia                                                                                       2,740,944
                                          Guam                                                                                             70,645
                                          Hawaii                                                                                          256,454
                                          -____.--.-__
                                          Idaho                                                                                           456,576
                                          Illinois                                                                                      7,133,460
                                          -.--I
                                          Indiana                                                                                       2,370,024
                                               -----
                                          Iowa                                                                                            740,924
                                          Kansas                                                                                          627.663
                                                                                                                                              .~
                                          --.-
                                          Kentucky                                                                                      2.243,814
                                          Louisiana                                                                                     4,136,362
                                          Maine                                                                                           424,615
                                          Maryland                                                                                      1,257,479
                                          ___l___l__--
                                          Massachusetts                                                                                 1,639,507
                                          Michigan                                                                                      6,951,067
                                          Minnesota                                                                                     1,450,950
                                          .-___.
                                          Mississiooi                                                                                   1.690,191
                   Y                      Missouri                                                                                      2,149,870
                                                                                                                                      (continued)




                                          Page 37                                            GAO/RCEDfJO-52 Status of M&hey            Act Funds
Appendix IV
Homeless Ad&ance  Programs of the Federal
Emergency Management Agency




State/territory0                                                                              Amount
Montana                                                                                        347,222
Nebraska                                                                                       436,522
Nevada                                                                                         512,905
New Hampshire                                                                                  250,000
New Jersey                                                                                   2,290,337
New Mexico                                                                                   1,058,347
New York                                                                                     6,967,330
North Carolina                                                                               2,206,377
North Dakota                                                                                   252,994
Northern Marianas                                                                               44,387
Ohio                                                                                         5,995,305
Oklahoma                                                                                     1,995,763
Oregon                                                                                       1,649,721
Pennsylvania                                                                                 5,098,270
Puerto Rico                                                                                  1,854,795
Rhode Island                                                                                   291,758
South Carolina                                                                               1,550,095
South Dakota                                                                                   253,447
Tennessee                                                                                    28394.726
Texas                                                                                       13,711,749
Trust Territory                                                                                221,021
Utah                                                                                           709,147
Vermont                                                                                        252,409
Virain Islands                                                                                  97,526
Virginia                                                                                     1,507,290
Washington                                                                                   3,025,415
Kest Virainia                                                                                1,345,678
Wisconsin                                                                                    1,953,776
Wyoming                                                                                        264,913
Total                                                                                   $1 24,052,844b
aThis table provides the total amounts of money awarded to the state set-aside committees plus eligible
localities within each state.

bThe discrepancy between the total amount of money awarded in fiscal year 1989 and FEMA’s fiscal
year 1989 appropriation is due to funds used for administrative costs.




Page 38                                           GAO/RCED-90-52      Status of McKinney    Act Funds
Appendix V

HomelessAssistance Programs of the
Department of Health and Human Services

                        This section provides descriptions of HHS’homeless assistance programs.
                        These programs are the Community Demonstration Grant Projects for
                        Alcohol and Drug Abuse Treatment of Homeless Individuals; the Com-
                        munity Mental Health Services Demonstration Projects for Homeless
                        Individuals Who are Chronically Mentally Ill; the Community Mental
                        Health Services for the Homeless Block Grant Program; the Emergency
                        Community Services Homeless Block Grant Program; and the Health
                        Care for the Homeless Program.



conmunity
De nonstration Grant
Pr ,jects for Alcohol
   1 Drug Abuse
2 batmentof
HomelessIndividuals

How the Program Works   This demonstration program, which is administered by the National
                        Institute on Alcohol Abuse and Alcoholism (NIAAA), funds community-
                        based public and nonprofit organizations that provide alcohol and drug
                        abuse treatment and rehabilitation services for individuals with alcohol
                        and/or drug-related problems who are homeless. The purpose of this
                        program is to provide, document, and evaluate successful and replicable
                        approaches to community-based alcohol and/or drug abuse treatment
                        and rehabilitation services. Because little is known about the efficacy of
                        treatment interventions for homeless persons with alcohol and drug
                        abuse problems, and because of the need to develop an effective
                        national strategy, NIAAA places considerable emphasis on the evaluation
                        component of this program. Implementation of an effective national
                        evaluation strategy and the dissemination of the findings will enhance
                        the replicability of each of the demonstration projects funded.

                        With fiscal year 1987 funds, NIAAA funded nine projects for 2 years. All
                        of the funded projects focus on developing innovative approaches to
                        serving the particular homeless population through such activities as
                        outreach programs in the streets and homeless shelters, intensive-case
                        management, and supportive housing arrangements. Of the nine projects
                        funded, five of NIAAA’S awardees provided direct treatment services to




                        Page 39                             GAO/RCED-9042   Status of McKinney   Act Funds
                       Appendix V
                       Homeless Assbtance Programs of the
                       Department of Health end Human Services




                       homeless individuals for both alcohol and drug abuse while also provid-
                       ing other types of supportive services, such as housing, medical care,
                       education, and job training. In many cases, the supportive services are
                       provided by the project directly; in others, they are coordinated by case
                       managers at the project but accessed through other programs. Long-
                       term residential housing is provided in three of the projects, while four
                       offer temporary shelter space or “sleep-off” areas. Three projects
                       targeted a specific population such as women with children. According
                       to estimates made in the projects’ applications, approximately 3,000
                       individuals will receive some level of treatment and/or services
                       annually.


Decision Process for   Grants are awarded by the Institute through a review process of experts
                       on alcohol and drug abuse problems. In deciding which projects to fund,
Providing Funds        the panel focuses on urban areas with large homeless populations and
                       entities with working knowledge of and experience in dealing with the
                       special needs of the target population. The panel assessesthe technical
                       merit of the proposals on the basis of criteria which include (1) the
                       extent to which the applicants demonstrate a clear understanding of the
                       scope and range of service needs among the target population; (2) the
                       availability of community resources in the proposed demonstration area;
                       (3) the level of need for the demonstration project in the proposed local-
                       ity; and (4) prior experience and expertise of the applicant and proposed
                       staff in working with alcohol-dependent, drug-dependent, and/or home-
                       less individuals. NIAAA makes funding decisions based on the assessment
                       by the panel of the proposal’s technical merit but also considers whether
                       the proposal focuses on urban areas, the need for geographic distribu-
                       tion in NIAAA'S funding decisions, the balance of racial/ethnic popula-
                       tions to be served by proposals considered for funding, and the
                       availability of funds.

                       As a requirement of the grant, each grantee evaluates its own project,
                       and participates in a national evaluation across all demonstration
                       projects serving the homeless, These evaluations are to provide informa-
                       tion for future service efforts and are intended to enhance the repli-
                       cability of the approaches demonstrated. Twenty-five percent of each
                       award is to be used for evaluation purposes.

                       Table V-1 shows the amount of funds authorized and appropriated for
                       fiscal years 1987-89. Table V.2 shows the total amount of funds pro-
                       vided for fiscal year 1989 by state.



                       Page 40                                   GAO/RCED-SO-62 Status of McKinney   Act Funds
                                          Appendix V
                                          Homelese Assietance Programa of the
                                          Department of Health and Human Sepenticee




Table Y.1: Fund8 Authorized and
Apprdpriated for the Community            Dollars in millions
D&nofwtration &ants Program for                                                                                      Fiscal year
       I and Drug Abuse Treatment for     Funding                                                     1987               1988                1989
                                           .- .._ _--
                                          Authorized                                                  $10.0                  $Ob            $14.0
                                          Appropriated                                                  9.2a                  Ob              4.5c
                                          aP,L. 100-71 appropriated a lump-sum amount of $50.7 million to HHS for three of its homeless assis-
                                          tance programs combined-Alcohol     and Drug Abuse Treatment Demonstration Grants, Mental Health
                                          Services Demonstration Projects, and Mental Health Services Block Grant.

                                          bNo funds were specifically earmarked in fiscal year 1988 for this program. However, P.L. loo-202 autho-
     I                                    rized and appropriated a lump sum of $1.37 billion to HHS for alcoholism, alcohol and drug abuse, and
     I                                    mental health programs.

     I                                    CNo funds were specifically earmarked for this program in fiscal year 1989. P.L. loo-436 appropriated a
     I                                    lump-sum amount of $158 billion to HHS for alcoholism, alcohol and drug abuse, and mental health
                                          programs.

     /
     ,
                                          In fiscal year 1987, NIAAA awarded nine 2-year grants. Fiscal year 1989
                                          funds were used only to renew funding to seven of the original nine
                                          projects; no new applications for the program were accepted.

Table) V.2: Community Demonstration
Grants Program for Alcohol and Drug       - ___-
                                          State8                                                                                         Amount
Abu8b Treatment for Homeless        -     California                                                                                    $524,297
incWJduals-Funds    Provided for Fiscal
.-                                        Kentucky                                                                                       722,770
year 1989 by State
                                          Massachusetts                                                                                  616,072
                                              ..- -_.-
                                          Minnesota                                                                                      519,791
                                          New York                                                                                       628,673
                                          Pennsylvania                                                                                   989,967
                                          Tntal
                                          . -.-.                                                                                      $4.001,570b
                                                                                                                                        .   .
                                          aFunds were provided to demonstration projects located in these states.
                                          OThe discrepancy between the total amount of funds provided in fiscal year 1989 and the program’s
                                          fiscal year 1989 appropriation is due to funds used for administrative and evaluation costs.




                                          Page 41                                            GAO/RCRD-90-62      Status of McKinney    Act Funds
                            Appendix V
                            Homeless Assistance Programs of the
                            Department of Health and Human Services




Corkununity Mental
He&lth Services
Demonstration
Proijectsfor Homeless
IndSviduals Who Are
Ch$onically Mentally
Ill

H& the Program Works        The Community Mental Health Demonstration Projects for Homeless
                            Individuals Who Are Chronically Mentally Ill is a competitive grant pro-
                            gram which emphasizes the development of two types of demonstration
                            programs: comprehensive service systems for homeless mentally ill
                            adults, and targeted service delivery services for homeless children and
                            adolescents who are severely mentally ill. Administered by the National
                            Institute of Mental Health, the goals of the demonstration projects are to
                            respond comprehensively to the needs of the homeless mentally ill by

                        l demonstrating a coordinated system of mental health outreach, case
                          management, treatment/rehabilitation, and a range of housing alterna-
                          tives and other supportive services;
                        l stimulating cooperation and formal linkages between health, mental
                          health, housing, education, rehabilitation, and social welfare agencies in
                          addressing the multiple needs of homeless mentally ill persons;
                        . enhancing the capacity of communities to provide effective community-
                          based treatment, rehabilitation, and supportive services for the target
                          population; and
                        l documenting and evaluating successful and replicable approaches to the
                          provision of coordinated housing, treatment, and supportive services for
                          homeless mentally ill persons.

                            Although the demonstration projects are community-based initiatives,
                            state mental health authorities are the only eligible applicants. Each
                            applicant, however, has to designate the local organization(s) that would
                            implement the project activities. The Institute awards the grants to state
                            authorities, who, in turn, award the money to local homeless assistance
                            providers.

                            Previously funded proposals included various provisions for implement-
                            ing the program goals noted, but optional programs have also been


                            Page 42                                   GAO/RCED-90-62   Status of McKinney   Act Funds
                       Appendix V
                       Homeless Assistance Programs of the
                       Department of Health and Human Services




                       funded. For example, one currently funded program serves minority
                       populations by providing bilingual staff and translating mental health
                       assessments, while others provide vocational training and job assistance
                       to clients.


Decision Process for   State mental health authorities are the only organizations eligible to sub-
Proyiding Funds        mit an application. Applications are for 2-year grants in one local geo-
                       graphic area, serving either homeless mentally ill adults or homeless
                       severely emotionally disturbed children and adolescents.

                       Applications are reviewed and ranked by a review panel of outside
                        experts. Each application has a primary and secondary reviewer. The
                       criteria by which proposals to serve homeless mentally ill adults are
                       judged include the proposals’ ability to provide (1) outreach to eligible
                        individuals in nontraditional settings such as shelters and streets; (2)
                       intensive, long-term case management, including needs assessment and
                       treatment, and service planning; (3) mental health treatment, including
                       screening, diagnosis, and drug and alcohol abuse detoxification and
                       treatment; (4) staffing and operation of supportive living programs
                       where housing provisions are linked with health services; and (5) man-
                       agement and administrative activities to link together these various ser-
                       vices. The criteria used to judge proposals to serve the needs of mentally
                       ill children and adolescents are the proposals’ ability to (1) provide
                       screening activities to identify unserved children, assess their mental
                       health and other social welfare needs, and refer them to appropriate
                       programs and (2) provide for those who are severely disturbed, and
                       arrange for mental health outreach and intensive-case management.

                       The results of these evaluations are submitted in writing to the panel.
                       No criterion is weighted as more important in the scoring process. The
                       panel votes on the application and determines a score for each proposal.
                       The proposals are ranked and funded according to these scores.

                       Two-year grants were awarded at the end of fiscal year 1987 to 12 state
                       mental health authorities. Fiscal year 1987 funds for this program went
                       to nine adult projects and three children’s projects. The 12 projects
                       funded in fiscal year 1987 had to apply for renewal funding for an addi-
                       tional 2 years by May 22,1989. Eight of these were provided renewal
                       funds in September 1989.




                       Page 43                                   GAO/RCED-90-62   Status of McKinney   Act Funds
      ,
                                          Appendix V
                                          Homeless Assistance Programs of the
                                          Department of Health and Human Services




                                          Table V.3 shows the amount of money authorized and appropriated for
                                          fiscal years 1987-89. Table V-4 shows the total amount of funds pro-
                                          vided for fiscal year 1989 by state.

Table p.9: Fund8 Authorized and
ApproDriated for the Mental Health        Dollars in millions
          Demonstration Projects for                                                                                   Fiscal year
           individuals Who Are            Funding                                                       1987               1988                1989
                                          Authorized                                                   $10.0                  $Ob              $11 .o
                                          Aoworxiated                                                    9.3”                  Ob                4.6”
                                          ?L. 100-71 provided a lump-sum amount of $50.7 million to HHS for three of its homeless programs
                                          combined, including this one, for fiscal year 1987.
                                          bNo funds were specifically earmarked for this program in fiscal year 1986. However, P.L. 100202 autho-
                                          rized and appropriated a lump-sum amount of $1.37 billion to HHS for chronically mentally ill programs.

                                          cP.I_. loo-436 provided a lump-sum amount of $1.5 billion for alcohol, drug abuse, and mental health
                                          programs.


Table V.4: Community Mental Health
Se&es Demonstration Projects for          State’                                                                                           Amount
Homeless individuals Who Are              Illinois                                                                                        $636,183
Chronically Mentally iii-funds Provided                                                                                                     481,212
                                          Michigan
for Fiicai Year 1989 by State
                                          New York                                                                                          660,370
                                          Ohio                                                                                              633,841
                                          South Carolina                                                                                    649,030
                                          Tennessee                                                                                         350,073
                                          Vermont                                                                                           218,029
                                          Virginia                                                                                          393,617
                                          Total                                                                                         $4,022,355b
                                          aFunds were provided to demonstration projects in these states.
                                          bThe discrepancy between the total amount of funds provided in fiscal year 1989 and the program’s
                                          fiscal year 1989 appropriation is due to funds used for administrative, evaluation, and technical assis
                                          tance costs.




Community Mental
Health Services for the
HomelessBlock Grant

How the ProgqamWorks                      The Community Mental Health Services for the Homeless Block Grant
                                          Program was created to provide funding to states and territories for a
                                          variety of community mental health services to homeless individuals


                                          Page 44                                             GAO/RCED-90-62       Status of McKinney    Act Funds



                                                      -.             -..    -.    _-______.               .-__-
                       Appendix V
                       Homeleae &Wance     Program@ of the
                       Department of Health and Hums S~rvWe




                       and those at significant risk of becoming homeless. The program, admin-
                       istered by the Alcohol, Drug Abuse, and Mental Health Administration
                       (ADAMHA),guarantees funds to each state upon applying, provided that
                       the state agrees to provide a defined set of community mental health
                       programs covering a wide range of services for the chronically mentally
                       ill.

                       Services which must be provided in order to participate in the program
                       include outreach; community mental health services such as crisis inter-
                       vention; referrals for hospital, primary health care, and substance
                       abuse; case management; and training to outreach workers and other
                       individuals who provide these services to the homeless. Although states
                       must offer all of these services, each program does not have to make
                       available all services at each site.

                       States differ in how they define and propose to deliver these services.
                       For example, in providing outreach services, several states planned to
                       develop mobile units that are staffed by a variety of professionals
                       including social workers, psychologists, case managers, and nurse prac-
                       titioners. Other states planned to provide these services through estab-
                       lished community sites such as soup kitchens or shelters, as well as at
                       jails and psychiatric hospitals, For example, one state proposed provid-
                       ing 24-hour on-site emergency services at community mental health cen-
                       ters which would be available to persons using shelters. The diversity of
                       proposals from the states reflects their existing services for the home-
                       less in that some states use these funds to enhance existing programs
                       and services while others are just developing programs to target this
                       population.


Decision Process for   ADAMHAawards grants to the states according to a statutory formula.
Providing Funds        The McKinney Act, as amended, requires that each state, the District of
                       Columbia, and Puerto Rico receive no less than $275,000 and the four
                       territories (Guam, Virgin Islands, American Samoa, and the Northern
                       Marianas), no less than $50,000 each. However, because the Congress
                       appropriated less funds than needed to pay these minimum amounts for
                       fiscal year 1989, allotments were reduced and prorated. For fiscal year
                       1989, each state that applied (including the District of Columbia and
                       Puerto Rico) received $267,944, while each of the four territories
                       received $48,717. The McKinney Act, as amended, extended the block
                       grant authority for another 3 years and specified that if the amounts
                       appropriated are insufficient to provide the states with a minimum of



                       Page 46                                GAO/RCED-90-62   Status of McKinney   Act Funds
                                                                                                                                                  ,
                                         Appendix V
                                         Homeless Assistance Programs of the
                                         Department of Health and Human Services




                                         $160,000, the distribution formula will be suspended and grants will be
                                         distributed as the Secretary deems appropriate.

                                         Funding is not automatic, States must submit an application describing
                                         how the funds will be spent and must match every $3 federal dollars
                                         with $1 dollar from nonfederal public or private sources. States are also
                                         required to identify the geographic areas where the greatest number of
                                         homeless mentally ill in need of services are located. In previous fiscal
                                         years, states complied with the requirement in a variety of ways, but
                                         the most widely used method was to estimate the homeless population
                                         of an entire state, region, or community and then, by using other appro-
                                         priate data, estimate that a percentage of these individuals was men-
                                         tally ill. Estimates of the homeless population were obtained using a
                                         variety of methods, including local or statewide surveys of the number
                                         of individuals using shelters and other homeless services and national or
                                         state homeless rates adjusted to local population rates.

                                         There is no deadline for the application, but money must be awarded by
                                         the end of the federal fiscal year in which the funds were made availa-
                                         ble. For fiscal year 1989, all states applied for their money.

                                         Table V.5 shows the amount of money authorized and appropriated for
                                         fiscal years 1987439. Table V.6 shows the total amount of funds pro-
                                         vided to each state and territory (including the District of Columbia and
                                         the Commonwealth of Puerto Rico) for fiscal year 1989.

Tablb V.5: Funds Authorized and
Appropriated for the Community Mental    Dollars in millions
Healih Services for the Homeless Block                                                                             Fiscal year
Grant                                    Funding                                                    1987               1988               1989
                                                                                                                             b           $35.0
                                         Authorized                                                 $35.0
                                         Appropriated                                                32.2”              11.5”             14.16
                                         aP.L. 100-71 appropriated a lump-sum amount of $50.7 million for three homeless assistance programs,
                                         including this one, for fiscal year 1987.
                                         bThe McKinney Act, as amended (P.L. IOO-628) authorized “such sums as may be necessary.”

                                         CNo funds were specifically earmarked for this program. However, P.L. loo-202 appropriated a lump-
                                         sum amount of $1.37 billion to HHS for alcoholism, alcohol and drug abuse, and mental health programs.
                                         dNo funds were specifically earmarked for this program. However, P.L. loo-436 appropriated a lump-
                                         sum amount of $1.5 billion to HHS for alcoholism, alcohol and drug abuse, and mental health programs.




                                         Page 46                                           GAO/RCED-90-62     Status of McKinney    Act Funds
                                         Appendix V
                                         Homeless Assistance Programs of the
                                         Department of Health and Human Services




Table V.6: Community Mental Health
Serviqes for the Homeless Block Grant-   State                                                                           Amount
Fund Provided for Fiscal Year 1989 by    Each state                                                                      $267,944
State x, erritory
                                         Each territory                                                                     48,717




Efiergency
Co$umnity Services



Ho+ the Program Works                    The Emergency Community Services Homeless Grant Program (EHP),
                                         which is operated by the Office of Community Services (ocs), provides
                                         grants to states and territories using the Community Services Block
                                         Grant (CSBG)allocation formula. State agencies distribute the funds to
                                         eligible entities, such as community action agencies, to provide emer-
                                         gency assistance to the homeless.

                                         The McKinney Act states that EHP funds may be used only to (1) expand
                                         comprehensive services to homeless individuals to provide follow-up
                                         and long-term services to help them make the transition out of poverty;
                                         (2) provide assistance in obtaining social and maintenance services and
                                         income support services for homeless individuals; (3) promote private-
                                         sector and other assistance to homeless individuals; and (4) provide
                                         assistance under certain conditions to an individual who has received a
                                         notice of foreclosure, eviction, or termination of utility services, in order
                                         to prevent him or her from becoming homeless.


Decision Process for                     To receive an EHPgrant, a state must submit an application to ocs
Providing Funds                          describing the agencies, organizations, and activities that the state
                                         intends to support with the funding received. In addition, the applica-
                                         tion must contain seven assurances signed by the Governor or his/her
                                         designee, along with a written plan describing how the state will carry
                                         out each assurance. Basically, these assurances restrict how the state
                                         may spend the funds it receives. For example, the state must agree that
                                         funds will not be used to defray state administrative costs and that not
                                         more than 25 percent of the funds will be used for activities to prevent
                                         homelessness.



                                         Page 47                                   GAO/RCED-90-62   Status of McKinney   Act Funds
-7
                                                                                                                                                  --



     --                                                                                                                                  ~-
                                        Appendix V
                                        Homeless Assistance Programs of the
                                        Department of Health and Human Services




                                        Funds appropriated for EHP are to be distributed to 57 states and territo-
                                        ries that receive funds under CSBG(42 USC. 9901 et seq.), using its allo-
                                        cation formula. In addition, the McKinney Act directs that not less than
                                        1.5 percent of appropriated funds be set aside for federally recognized
                                        Indian tribes.

                                        The state must award all of its funds to community action agencies and
                                        other entities eligible to receive funds from the state under Section
                                        675(c)(2)(A) of the CSBGAct, organizations serving migrant and seasonal
                                        farm workers, and certain other organizations that received fiscal year
                                        1984 CSBGfunds from a state under special waiver provisions included
                                        in Public Law 98-139. Ninety percent of the amounts must go to eligible
                                        agencies and organizations that were providing services to meet the crit-
                                        ically urgent needs of homeless individuals as of January 1, 1987. In the
                                        event that a state fails to apply for its allocation or submits an applica-
                                        tion which is not approved, the Secretary of Health and Human Services
                                        is to award the state’s allocation directly to eligible organizations within
                                        the state.

                                        Table V.7 shows the amount of money authorized and appropriated for
                                        fiscal years 1987-89. Table V-8 shows the total amount of funds pro-
                                        vided for fiscal year 1989 by state/territory (including the District of
                                        Columbia and the Commonwealth of Puerto Rico).

     Tabl’ V.7: Funds Authorized and
     App,r opriated for the Emergency   Dollars in millions
     Communlty Services Homeless &ant                                                                              Fiscal year
     Program                            Fundina                                                     1987               1988                1989
                                        Authorized                                                  $40.0              $40.0              $42.0
                                        Appropriated                                                 36.6”               19.1b                18.9”

                                        aEHP’s appropriation was $36.8 for fiscal year 1987. However, according to the program manager,
                                        $250,000 was transferred to the Interagency Council on the Homeless.
                                        bNo funds were specifically earmarked for this program for fiscal year 1988. However, P.L. 100202
                                        appropriated a lump-sum amount of $382.3 million to HHS for the Community Service Block Grant Act.

                                        ‘No funds were specifically earmarked for this program for fiscal year 1989. However, P.L. loo-436 pro-
                                        vided a lump-sum amount of $382.2 million to HHS for the Community Service Block Grant Act.




                                        Page 48                                            GAO/WED-So-B2       Status of McKinney    Act Funds
                                          Appendix V
                                          Homelees Assistance l?cograms of the
                                          Department of Health and Human Services




Table $8: Emergency Community
Servlc+ Homeless &ant Program-            State/territory                                                                   Amount
        rovlded for Fiecal Year 1989 by   Alabama                                                                           $360,099
                                          Alaska                                                                               79,397
                                          American Samoa                                                                       20,217
                                          Arizona                                                                             275,476
                                          Arkansas                                                                            263,762
                                          California                                                                        1,729,785
                                          Colorado                                                                            169,759
                                          Connecticut                                                                         234,065
                                          Delaware                                                                             47,295
                                          District of Columbia                                                                318,615
                                          Florida                                                                             563,763
                                          Georgia                                                                             521,836
                                          Guam                                                                                 19,134
                                          Hawaii                                                                               80,991
                                          Idaho                                                                                52,793
                                          iiii%s                                                                              916,281
                                          Indiana                                                                             282,470
                                          Iowa                                                                                209,935
                                          Kansas                                                                              158,257
                                          Kentuckv                                                                            327,105
                                          Louisiana                                                                           455,429
                                          Maine                                                                               102,488
                                          Maryland                                                                            266,115
                                          Massachusetts                                                                       483,500
                                          Michigan                                                                            719,105
                                          Minnesota                                                                           233,478
                                          Mississippi                                                                         311,502
                                          Missouri                                                                            536,805
                                          Montana                                                                              84,705
                                          Nebraska                                                                            135,203
                                          Nevada                                                                               47,295
                                          New Hampshire                                                                        52,511
                                          New Jersey                                                                          531,383
                                          New Mexico                                                                          186,708
                                          New York                                                                          1,684,633
                                          North Carolina                                                                      516,437
                                          North Dakota                                                                         60,142
                                          Northern Marianas                                                                     11,986
                                          Ohio                                                                                756,118
                                          Oklahoma                                                                            272,365
                                                                                                                          (continued)



                                          Page 49                                   GAO/RCED-90-52   Status of McKinney    Act Funds
                         Appendix V                                                                               .
                         Homeless Assistance Programs of the
                         Department of Health and Human Services




                         State/territory                                                              Amount
                         Oregon                                                                        155,424
                         Palua
                         -__                                                                            16,823
                         Pennsylvania                                                                  821,277
                         Puerto Rico                                                                   817,175
                         Rhode Island                                                                  109,276
                         South Carolina                                                                298,295
                         South Dakota                                                                   88,318
                         Tennessee                                                                     382,211
                         Texas                                                                         934,109
                         Utah                                                                           81,633
                         Vermont                                                                        54,289
                         Virginia                                                                      310,507
                         Virgin Islands                                                                 26,430
                         Washington                                                                    241,309
                         West Virginia                                                                 217,115
                         Wisconsin                                                                     237,567
                         Wyoming                                                                        47,295
                         Total                                                                   $18,918,000




Health Care for the
Hqmeless

Hoiv the Program Works   This program, administered by the Health Resources and Services
                         Administration (HRSA)of the Public Health Service, makes grants availa-
                         ble to provide for the delivery of health services to homeless individu-
                         als. Grants are available to local private, nonprofit, and public health
                         organizations for primary health care, substance abuse, and mental
                         health services for the homeless. Projects are generally administered by
                         local public health departments, community and migrant health centers,
                         inner-city hospitals, and local community coalitions.

                         The program was modeled after a national demonstration program
                         funded by the Robert Wood Johnson/PEW Foundation to provide health
                         care for the homeless. The Johnson Foundation program funded demon-
                         stration projects in 19 large cities in 1985 to show that homeless people
                         needed and would accept primary health care services if they were
            3
                         delivered in a dignified manner in outreach settings where homeless per-
                         sons are located.



                         Page 50                                   GAO/RCED-90-52
                                                                              Status   of McKinney   Act F’unds
                           Appendix V
                           Homeless Assistance Programs of the
                           Department of Health and Human Services




                           Since the passage of the McKinney Act, HRSAhas funded 109 projects;
                           approximately half are administered by existing community and
                           migrant health centers and half are administered by nonprofit coali-
                           tions, inner-city hospitals, and local public health departments serving
                           the homeless. In the first year of operation, these projects served over
                           230,000 homeless persons, of which 40 percent were families and run-
                           away/homeless youths, 15 percent were children 14 years and under,
                           and 60 percent were minorities. The services provided by these projects
                           include aggressive outreach efforts to bring health care services to the
                           homeless as well as interdisciplinary, comprehensive health service
                           projects. An interdisciplinary approach brings together primary health,
                           mental health, substance abuse, and social services, which are generally
                           operated by independent agencies in local communities with limited
                           coordination, and builds a more coordinated network.


Decision Process for       Grants are awarded under this program on a competitive basis, whereby
Providing Funds            applications are reviewed by an expert panel. A lo-member review
   1                       panel consisting of outside experts votes and recommends funding levels
                           on the basis of the project’s adherence to mandated requirements, such
                           as (1) the provision of all legislatively required services; (2) adherence
                           to the goals and objectives of the program; (3) membership in a commu-
                           nity coalition; and (4) the justification for the funding level, based on a
                           description of the program’s services,

                           In addition, recipients had to explain how their project would

                       l provide health services at locations accessible to homeless persons,
                       . provide round-the-clock access to emergency health services,
                       . refer homeless persons for necessary hospital services,
                       . refer homeless persons for needed mental health services unless the ser-
                         vices are directly provided,
                       . provide outreach services to inform homeless individuals of the availa-
                         bility of health services, and
                       l aid homeless individuals in establishing eligibility for assistance and
                         obtaining services under entitlement programs.

                           Funded projects had to match 25 percent of project costs with
                           nonfederal sources in the first year and 33-l/3 percent any subsequent
                           fiscal year unless a waiver was obtained. The 1988 McKinney Act
                           amendments allow projects to continue to provide follow-up services to
                           homeless individuals for 1 year after the individuals have been placed in
                           permanent housing.


                           Page 61                                   GAO/RCED-90-62   Status of McKinney   Act Funds
           - .~
                                               Appendix V
                                               Homeless Assistance Program of the
                                               Department of Health and Human Services




                                               Because of low appropriation levels for fiscal years 1988 and 1989, no
                                               applications for new projects were considered in fiscal year 1989. The
                                               fiscal year 1989 funds were only used to augment the existing 109
                                               projects. The goal was to fund the existing programs as close to fiscal
                                               year 1987 levels as possible in order to maintain the same level of
                                               services.

                                               Table V.9 shows the amount of money authorized and appropriated for
                                               fiscal years 1987-89. Table V.10 shows the total amount of funds pro-
                                               vided for fiscal year 1989 by state (including the District of Columbia).

Table V.9: Funds Authorized and
Apprbpriated for the Health Care for the       Dollars in millions
Homeless Program                                                                                                              Fiscal year
                                               Funding                                                        1987                1988                 1989
                                               Authorized                                                       $50               $30.0               $61.2
                                               Ar.xvorxiateda                                                    46                14.3b               14.8”
                                               aThese amounts represent only new funds allocated by HHS to the program. The total amount of money
                                               available for obligation for fiscal year 1989 was actually around $45 million, which consists of a total of
                                               unobligated funds carried over from fiscal year 1987 plus new funds allocated in fiscal years 1966 and
                                               1989.
                                               bNo funds were specifically earmarked for this program in fiscal year 1986. However, P.L. loo-202 appro-
                                               priated a lump-sum amount of 51.55 billion to HRSA to carry out various programs, including this one.
                                               The 514.3 million allocated to the program was done so at HHS’ discretion.

                                               ‘No funds were specifically earmarked for this program in fiscal year 1989. However, P.L. loo-436 appro-
                                               priated a lump-sum amount of 51.63 billion to HHS to carry out various HRSA programs. The 514.8
                                               million allocated to the program was done at HHS’ discretion.
                                           -
Table V.10: Health Care for the Homeless
Program-Funds Provided for Fiscal              state                                                                                               Amount
Year 1989 by State                             Alabama                                                                                           $488,357
                                               Arizona                                                                                           1,592,902
                                               California                                                                                        7,564,307
                                               Colorado                                                                                            590,829
                                               Connecticut                                                                                         709,916
                                               District of Columbia                                                                               1,473,429
                                                                                                                                                  1,583,941



                                               Idaho                                                                                               367,388
                                               Illinois                                                                                          1,849,774
                                                              ____
                                               Indiana                                                                                             245,720
                                               Iowa                                                                                                513,530
                                                                                                                                               (continued)




                                               Page 52                                              GAO/RCEDSO-52        Status of McKinney      Act Funds
    Appendix V
    Homeless Assistance Programs of the
    Department of Health and Human Services




    State’                                                                                            Amount
    Kansas                                                                                            320,796
    Kentucky                                                                                          441,117
    Louisiana                                                                                         875,000
    Maryland                                                                                          834,743
    Massachusetts                                                                                   1,344,343
                                                                                                      --
    Michigan                                                                                        1,369,340
                                                                                                            -_
    Minnesota                                                                                         962,468
    Mississippi                                                                                        147,315
    Missouri                                                                                        1,941,353
    Nebraska                                                                                           158,352
    New Hampshire                                                                                      124,130
                                  -
    New Jersey                                                                                      1,189,150
    New Mexico                                                                                        263,333
    New York                                                                                        3,883,363
                                                                                                         --
    North Carolina                                                                                    449,372
    Ohio                                                                                            2,001,174
    Oklahoma                                                                                          393,319
    Oregon                                                                                            557,534
    Pennsvlvania --__                                                                               2,703,493
    Puerto Rico                                                                                       300,000
    Rhode Island                                                                                      257,257
    South Carolina                                                                                    114,930
    Tennessee                                                                                       1,018,879
    Texas                                                                                           2,293,569
    Utah                                                                                              442,739
    Vermont                                                                                           275,025
    Virginia                                                                                          565,929
    Washington                                                                                      1,298,816
    West Virginia                                                                                     201,165
    Wisconsin                                                                                         772,000
    Total                                                                                       $45,441,590,
    aAwards were made to private, nonprofit, and public organizations in these states, the District of Colum-
    bia, and Puerto Rico.
    bThis figure is the total of new fiscal year 1989 funds allocated to the program plus any funds carried
    over from fiscal year 1987 by each project.




Y




    Page 63                                             GAO/RCED-90-62       Status of McKinney     Act Funds
Appendix VI

]Etomeless
         Assistance Programs of the
Department of Veterans Affairs

                        This appendix provides descriptions of VA’S homeless assistance pro-
                        grams These programs are the Homeless Chronically Mentally Ill (HCMI)
                        Veterans Program and the Domiciliary Care for Homeless Veterans
                        (ncuv) Program.



HomelessChronically
Mentally Ill Veterans
PfDgram

Hay the Program Works   The HCMIProgram, which was initially established and funded through
                        Public Laws 100-6 and 100-322, is designed to meet the specific needs of
                        homeless veterans with chronic mental health problems. With subse-
                        quent authorizations from the McKinney Homeless Assistance Act
                        Amendments (P.L. lOO-628), VA has funded 43 VA medical care facilities
                        in 26 states (and the District of Columbia) for programs to serve home-
                        less chronically mentally ill veterans.

                        These programs provide outreach staff and case managers who work
                        closely with community coalitions to locate homeless, chronically men-
                        tally ill veterans on the streets, in soup kitchens, and in temporary shel-
                        ters, and to identify others eligible for care. Once located, the veteran is
                        brought to a VA Medical Center (VAMC), whereby the HCMIProgram pro-
                        vides direct clinical care that includes medical and psychiatric assess-
                        ment and treatment, substance abuse treatment, job counseling, and
                        crisis intervention. Following assessment, some veterans are placed in
                        community-based residential treatment programs such as halfway
                        houses or psychiatric residential treatment centers for psychiatric care,
                        alcohol and drug abuse dependency, and rehabilitation. The VA case
                        managers monitor and supervise care provided to these veterans in the
                        various residential treatment programs.


Decision Process for    VAMCSare the only eligible recipients of HCMIfunds. VA funded 43 VAMCSin
                        the first year of the program. Fiscal year 1989 funds were used only to
Providing Funds         renew funding for these 43 centers; no new centers were funded.

              Y         To begin implementing the program, VA sent a request for proposal (RFP)
                        to all of its VAMCS. Each proposal that was submitted was reviewed for
                        (1) its strategy for integrating the VA effort into an existing community,



                        Page 64                              GAO/WED-90-52   Status of McKinney   Act Funds
                                            Appendix Vl
                                            Homeless Assistance Programs of the
                                            Department of Veterans Affairs




                                            or rural, city, or state organization working with the homeless; (2) a
                                            description of the specific on-site service delivery efforts needed to initi-
                                            ate contact with the homeless veteran; (3) a description of the facilities
                                            that would be available in the community to provide residential treat-
                                            ment; and (4) how the program would be integrated within the VAMCS,
                                            focusing on the available resources to provide comprehensive psychiat-
                                            ric and medical workups for the homeless veterans to be served. Addi-
                                            tional criteria which VA considered included a project’s ability to initiate
                                            the program relatively quickly, and its overall quality.

                                            When assessing the proposals, particular consideration was given to the
                                            (1) number of homeless veterans to be served by the project, (2) degree
                                            of interest expressed by the medical center leadership and participating
                                            community coalition, (3) creative innovations which would enhance the
                                            value and effectiveness of the project, (4) extent to which integration
                                            with other programs would improve the project’s quality, and (5) devel-
                                            opment of statistical data and a tracking system for monitoring
                                            purposes.

                                            The proposals were first assessedat VA’Sregional offices through proce-
                                            dures of their choosing. The results of this assessment were sent to VA in
                                            Washington, DC., where they underwent a second review by an in-
                                            house panel. This panel ranked the proposals and presented their recom-
                                            mendations to the Chief Medical Director for final approval.

                                            Table VI.1 shows the amount of money authorized and appropriated for
                                            fiscal years 1987-89. Table VI.2 shows the total amount of funds pro-
                                            vided for fiscal year 1989 by state (including the District of Columbia).

Table kl.1: Funds Authorized and
Appropriated for the Homeless               Dollars in millions
Chronically Mentally Ill Veterans Program                                                                              Fiscal year
                                            Funding                                                      1987              1988                 1989
                                                                                                                              $6b     ______-
                                            Authorized
                                            .-__ ____-_--_---.___~                                           $5                             -~ $36.0d
                                            Appropriated                                                     1oa                0”              13.3
                                            aThe HCMI program received two appropriations for fiscal year 1987. The first, P.L. 1006, transferred $5
                                            million from FEMA’s disaster relief program. The second, P.L. 100-71, provided supplemental appropria-
                                            tions of $5 million.

                                            bP.L. 100-322 authorized $6 million for fiscal years 1988 and 1989.

                                            CNo money was specifically earmarked for this program. However, P.L. loo-202 provided a lump-sum
                                            amount of $10.1 billion for medical care for veterans.

                                            dP.L. loo-626 authorized $30 million for HCMI and the Domiciliary Care program for homeless veterans.
                                            The additional $6 million was authorized by P.L. loo-322 for fiscal years 1988 and 1989.




                                            Page 56                                             GAO/RCED-90-62     Status of MeKinney     Act Funds
                                         Appendix VI
                                         Homeless Awlstance Programs of the
                                         Department of Veterans Affaim




liiblb Vl.2: Homeleeo Chronically
Mentally Ill Veterans Program-Funds      Stat&                                                                                        Amount
Provided tar Fiscal Year 1989 by State   Alabama                                                                                     $235,000
                                         Arizona                                                                                       671,723
                                         Arkansas                                                                                      212,818
                                         California                                                                                  1,580,173
    I                                    Colorado                                                                                      525,379
    I                                    District of Columbia                                                                          408,523
                                         Florida                                                                                       227,642
                                         Georgia                                                                                       409,159
                                         Illinois                                                                                      265,653
                                         Indiana                                                                                       335,855
                                         Kentucky                                                                                      332,500
                                         Louisiana                                                                                     717,404
                                         Maryland                                                                                      407,440
                                         Massachusetts                                                                                 191,470
                                         Missouri                                                                                    1,132,018
                                         New Jersey                                                                                   ‘249;8%
                                         New York                                                                                      759,462
                                         Ohio                                                                                        1,164,549
                                         Oregon                                                                                        426,161
                                         Pennsvlvania                                                                                  621,618
                                         South Carolina                                                                                244,677
                                         Tennessee                                                                                     374,106
                                         Texas                                                                                         595,217
                                         Utah                                                                                          160,336
                                         Virginia                                                                                      237,626
                                         Washington                                                                                    110,752
                                         Wvomina                                                                                      320,543
                                         Total                                                                                   $12,917,604
                                         ?-lCMl money was provided to VAMCs in these states and in the District of Columbia. However, the total
                                         does not include $279,396 awarded to a center in West Haven, Connecticut. The money is for con-
                                         ducting a national evaluation of the program, not to provide services.




Domiciliary Care for
HomelessVeterans

How the Program Works                    The DCHVProgram was established as a specialized treatment component
                                         within the existing Domiciliary Care Program administered by VA. The
                                         program is a clinical care program that provides less intensive care than


                                         Page 66                                           GAO/RCED-90-52     Status of McKinney    Act Funds
                       Appendix VI
                       Homeless Assistance Programs of the
                       Department of Veterans Affab




                       a hospital or nursing home but a higher level than community residen-
                       tial care settings. The program’s purpose is to use VA medical facilities to
                       provide primary health, mental health, and social services to homeless
                       veterans or veterans at serious risk of becoming homeless. According to
                       the VA, the veterans admitted into the program are generally socially iso-
                       lated, unemployed, impoverished, and troubled by a broad spectrum of
                       medical and psychiatric problems, with substance abuse being most
                       prominent among them. The ultimate goal is to help homeless veterans
                       suffering from medical or psychiatric disabilities to function at their
                       highest level of independence in the community.

                       The VA has established domiciliary care programs for homeless veterans
                       at 20 sites around the country. In November 1987, VA converted beds for
                       domiciliary care in 10 VA facilities in urban areas with significant num-
                       bers of homeless veterans. In addition, VA also established specialized
                       homeless veterans treatment programs at 10 existing VA domiciliaries.
                       As of June 1989, over 300 of these domiciliary care beds had been iden-
                       tified as being devoted to homeless veterans.

                       Existing domiciliaries provide two distinct types of care. Active bio-
                       psychosocial rehabilitation targets the physical, mental health, and
                       social impairments which inhibit the patient from reaching an optimal
                       level of functional independence and health. Long-term health mainte-
                       nance care prevents or delays degradations in health that would, if
                       unchecked, be expected to result from the progression of chronic dis-
                       ease. Small (40- to loo-bed) domiciliaries focus their resources and
                       efforts primarily on providing active biopsychosocial rehabilitation ser-
                       vices. Patients found to require long-term health maintenance care
                       would ordinarily be referred to the larger (IOO-or-more-bed) domiciliar-
                       ies or to clinically appropriate alternative sources of care.

                       Services include medical and psychiatric assessments, psychotherapy,
                       substance abuse treatment, skills training, and rehabilitation services.
                       Assistance is also available in finding housing and employment and pro-
                       viding ongoing support once veterans leave the domiciliaries.


Decision Process for   The DCHVProgram provided funds to 20 VAMCSduring the first year of
Providing Funds        the program. Fiscal year 1989 funds were used to renew funding to
                       these centers; no new centers have been funded.

                       To participate in the DCHVprogram, VAMCSwere required to submit appli-
                       cations that described


                       Page 57                               GAO/RCEDSO-62   Status of McKinney   Act Funds
    Appendix VI
    Homeless AWf5tance Programa of the
    Department of Veterans Affairs




l   how the program would be integrated with and operate in support of
    existing VAMC services and treatment programs;
.   existing medical center programs/activities related to providing care to
    homeless veterans;
.   existing underutilized space that could be redesignated to domiciliary
    use, specifically discussing renovations that may be necessary to sup-
    port domiciliary care program operating requirements;
.   staffing enhancements that would be required to supplement staff cur-
    rently assigned to areas proposed for redesignation; and
.   actions that would facilitate the activation of domiciliary care beds
    within 90 to 120 days.

    In addition to these criteria, particular consideration is given to (1) the
    potential number of homeless veterans to be served; (2) the degree of
    interest expressed by the medical center leadership team and the partic-
    ipating community coalition; (3) the number of geographically contigu-
    ous beds/amounts of underutilized space available for redesignation to
    domiciliary care uses; (4) the rapidity with which the program could be
    initiated; (6) estimated costs of necessary renovation; (6) creative inno-
    vations that would enhance the value and effectiveness of the proposal;
    (7) the ability to integrate with other existing programs and agencies;
    and (8) the ability to manage clinical care issues relating to substance
    abuse, AIDS/HIVinfection, post-traumatic stress disorder, and vocational
    rehabilitation.

    The proposals are reviewed by an in-house panel of subject matter
    experts. Final recommendations are made by the panel and then pre-
    sented to VA’S Chief Medical Director for approval.

    Table VI.3 shows the amount of money authorized and appropriated for
    fiscal years 1987-89. Table VI.4 shows the total amount of funds pro-
    vided for fiscal year 1989 by state.




    Page 68                              GAO/RCED-90-62   Status of McKhney   Act Funds
                                            Appendix VI
                                            Homeless Assistance Programs of the
                                            Department of Veterans Affairs




Table +: Funds Authorized and
Approfwiated for the Domiciliary Care for   Dollars in millions
Homel/ess Veterans Program                                                                                              Fiscal year
                                            Funding                                                      1987               1988                1989
                                                                                                                                                         b
                                            Authorized                                                     $15                   $0
                                            Appropriated                                                    15                    Oa                   0”

                                            *No funds were specifically earmarked for this program for fiscal years 1988 and 1989. However, a lump-
                                            sum appropriation was provided for veterans medical care. This amount was $10.1 billion for fiscal year
                                            1988, provided in P.L. 100-202, and $10.5 billion in fiscal year 1989, provided in P.L. 100-404. According
                                            to VA’s budget officer, VA spent $10.4 million on this program for these fiscal years.

                                            bP.L. loo-628 provided a $30 million joint authorization for the program and HCMI.


Table 1.4: Domiciliary Care for
Homel sb Veterans Program-Funds             State’                                                                                          Amount
Provid ‘: d for Fiscal Year 1989 by State   Arkansas                                                                                      $1,034,622
                                            California                                                                                       867,748
      /                                     Florida                                                                                          178,000
                                                                                                                                           1,034,622
                                            Kansas                                                                                            59,200
                                            Mississipoi                                                                                       88,800
                                            New Jersey                                                                                       689,748
                                            New York                                                                                       1,876,807
                                            Ohio                                                                                           1,471,277
                                            Oreaon                                                                                           778,548
                                            Pennsylvania                                                                                     689,748
                                            South Dakota                                                                                      59,200
                                            Tennessee                                                                                        148.000
                                            Virginia                                                                                         148,000
                                            Washington                                                                                     1,034,622
                                            Wisconsin                                                                                        148,000
                                            Total                                                                                      $10308,942
                                            aThe awards were provided to VA medical centers in these states. However, the total excludes 560,058
                                            awarded to a center in West Haven, Connecticut. This award was provided to the center to conduct an
                                            evaluation of the program, not to provide services.




                                            Page 59                                            GAO/RCED-90-62      Status of McKinney     Act Funds
Appendix VII

HomelessAssistance Programs of the
Department of Education

                        This appendix provides descriptions of the Department of Education’s
                        homeless assistance programs. These programs are the Adult Education
                        for the Homeless and the Education for Homeless Children and Youth
                        Programs.


                        Because the appropriation cycle for the McKinney Act education pro-
                        grams differs from the appropriation cycle for other McKinney Act pro-
fc/r Education          grams, fiscal year 1989 awards information for these programs was not
Programs Differs        available at the time of our review. The Congress provides money for
                        the major education programs, including those under the McKinney Act,
F;i-omOther McKinney    on the basis of the school year rather than the federal fiscal year in
A$t Programs            order to give state and local education agencies time to plan for the use
                        of funds. For example, fiscal year 1989 appropriations used for school
                        year 1989-90 became available to the Department of Education for obli-
                        gation in July 1989 (the last quarter of fiscal year 1989) and remain
                        available until September 30, 1990. Consequently, fiscal year 1989
                        award decisions had not been completed at the time of our review,
                        which ended in October 1989. Therefore, we have provided information
                        on the status of fiscal year 1988 funds for the McKinney Act education
                        programs which follow.



Adult Education for
the Homeless
-
Mow the Program Works   The Adult Education for the Homeless Program, a new grant program
                        for statewide literacy initiatives created by the McKinney Act, provides
                        state education agencies with funds to enable them to develop a plan
                        and implement literacy training and basic skills remediation programs
                        for homeless adults. Programs are tailored to the literacy and basic
                        skills needs of the specific homeless population being served by each
                        state and directed toward building cooperative relationships with other
                        service agencies to provide an integrated package of support services.
                        To accomplish this, programs are to include outreach activities, espe-
                        cially interpersonal contacts at locations where homeless persons are
                        known to gather, and outreach efforts through cooperative relations
                        with local agencies that provide services to the homeless such as com-
                        munity-based organizations, Volunteers in Service to America (VISTA),
                        the Adult Basic Education Program, and nonprofit literacy-action
                        organizations.


                        Page 60                             GAO/RCED-90-62   Status of McKinney   Act Funds
                                           Appendix VII
                                           Homeless Assistance Programs of the
                                           Department of Education




Decision Process for                       The Department of Education allocated its fiscal year 1988 funds to the
Protiding Funds                            60 states, the District of Columbia, and Puerto Rico on a formula basis.
                                           Each state was required to submit a copy of its plan for addressing the
                                           education problems of its adult homeless population and a count of the
                                           homeless persons to be served in that state. States were funded accord-
                                           ing to the ratio of individuals in each state who were 16 or older, did not
                                           have a certificate of graduation from a school providing secondary edu-
                                           cation or its equivalent, and were not enrolled in such a school to the
                                           total number of those individuals in all states. The minimum grant
                                           amount to a state was $75,000.

                                           Legislative changes were made to this program during fiscal year 1988,
                                           changing it from a formula grant program to a discretionary one. The
                                           Department developed new program regulations to incorporate these
                                           changes and will be implementing them to distribute its fiscal year 1989
                                           money. The comment period for the proposed program regulations
                                           ended on June 12, 1989. Final regulations became effective on October 2,
                                           1989. The Department planned to make program funds available in the
                                           fall of 1989 so that they could be used during the cold months when
                                           shelters are more frequently visited by the homeless.

                                           Table VII.1 shows the amount of funds authorized and appropriated for
                                           fiscal years 1987-89. Table VII.2 shows the total amount of funds pro-
                                           vided for fiscal year 1988 by state/territory (including the District of
                                           Columbia and the Commonwealth of Puerto Rico.)

Table; VII.1: Funds Authorized and
Apprbpriated for the Adult Education for   Dollars in millions
the Homeless Program                                                                                                 Fiscal year
                                           Funding                                                    1987               1988               1989
                                           Authorized                                                  $7.5              $10.0              $10.0
                                           Aoorooriated                                                 6.9                7.2a                  7.1a
                                           aNo funds were specifically earmarked for this program. However, P.L. loo-202 and P.L. loo-436 pro-
                                           vided lump-sum appropriations for vocational and adult education activities.




                                           Page 61                                           GAO/RCED-90-62     Status of McRinney    Act Funds
                                       Appendix VII
                                       Homelees As8h3tance Programs of the
                                       Department of Education




Table Vll.2: Adult Education for the
Homglesr Program-Funds Provlded for    State/territory                                                                 Amount
Flscfjl Year 1988 by State/Territory   Alabama                                                                         $129,363
                                       Alaska                                                                             75,000
                                       Arizona                                                                            75,000
                                       Arkansas                                                                           78,900
                                       California                                                                       526,992
                                       Colorado                                                                           75,000
                                       Connecticut                                                                       75,000
                                       Delaware                                                                    -75,ooo
                                       District of Columbia                                                               75,000
                                       Florida                                                                          278,126
                                       Georgia                                                                          183,112
                                       Hawaii                                                                             75,000
                                       Idaho                                                                              75,000
                                       Illinois                                                                         300,690
                                       Indiana                                                                          142,328
                                       Iowa                                                                              75,000
                                       Kansas                                                                            75,000
                                       Kentucky                                                                         133,618
                                       Louisiana                                                                        132,225
                                       Maine                                                                              75,000
                                       Maryland                                                                         108,731
                                       Massachusetts                                                                    126,247
                                       Michiaan                                                                         225,788
                                       Minnesota                                                                         81,696
                                       Mississippi                                                                       84,493
                                       Missouri                                                                         141,298
                                       Montana                                                                           75,000
                                       Nebraska                                                                          75,000
                                       Nevada         -                                                                  75,000
                                       New Hampshire                                                                     75,000
                                       New Jersey                                                                       190,714
                                       New Mexico                                                                        75,000
                                       New York                                                                         472,866
                                       _~.-__-
                                       North Carolina                                                                   205,437
                                       North Dakota                                                                      75,000
                                       ---.
                                       Ohio                                                                             274,804
                                       Oklahoma                                                                          81,347
                                       -.--
                                       Oreaon                                                                            75,000
                                       -Y-       -..--
                                       Pennsylvania                                                                     320,965
                                       Puerto Rico
                                       _l_-----                                                                         132,704
                                                                                                                    (continued)



                                       Page 62                               GAO/RCED-90-62   Status of McKinney     Act F’unda
                         Appendix VII
                         Homeless Assi13tauce Programa of the
                         Department of Fhcation




                         State/territory                                                                Amount
                         Rhode Island                                                                      75,000
                         South Carolina                                                                  107,548
                         South Dakota                                                                      75,000
                         Tennessee                                                                       157,740
                         Texas                                                                           411.646
                         Utah
                         --                                                                                75,000
                         Vermont                                                                           75,006
                         Virginia                                                                        158,361
                         Washington                                                                   -___ 76,283
                         West Virainia                                                                     75,000
                         Wisconsin                                                                       107,978
                         Wyoming                                                                           75,000
                         Total                                                                       $7,180,000




Education for
Hotieless Children and
YoLith

How the Program Works    The Education for Homeless Children and Youth Program provides
                         formula grants to state education agencies (and territories) to enable
                         them to prepare and carry out a state plan to provide for the education
                         of homeless children and youth; establish an Office of Coordinator of
                         Education for Homeless Children and Youth; and carry out policies
                         which shall ensure a free and appropriate public education for homeless
                         children. Unlike most McKinney Act programs, these funds do not pro-
                         vide direct services to the homeless-in this case, homeless school-age
                         children. Rather, the funds establish a coordinator’s office and support
                         state efforts in reviewing and revising policies which would otherwise
                         keep homeless children from attending public schools. Funds are pro-
                         vided to the 60 states, the District of Columbia, Puerto Rico, Guam,
                         American Samoa, the Virgin Islands, the Trust Territory of the Pacific
                         Islands, and the Northern Mariana Islands.


Decision Process for     States receive funding on the basis of the basic grant formula under the
Providing Funds          Chapter 1 Program of the Elementary and Secondary Education Act of
                         1966. The Chapter 1 Program, as amended by Public Law 100-197, pro-
                         vides financial assistance to meet the compensatory educational needs


                         Page 63                                GAO/RCED-9062   Status of McKinuey    Act Funds
                                       Appendix VII                                                                           r
                                       Homeless Asslstauce Programs of the
                                       Department of Education




                                       of educationally disadvantaged children who live in low-income areas
                                       and those of migrant parents; Indian children; and handicapped,
                                       neglected, and delinquent children. The grant allocation formula is
                                       based on the number of (1) school-age children from families below the
                                       poverty level, (2) children living in institutions for neglected or delin-
                                       quent children, (3) foster children, (4) children on AFDCbut above the
                                       national poverty level, and (5) the state’s per pupil expenditure. The
                                       minimum state allocation under the program is $50,000 per year.

                                       To receive funding, states must apply to the Department of Education.
                                       The application includes a list of assurances that states will use the
                                       funds in accordance with the requirements of the act and all applicable
                                       statutes. Additional assurances are that the states will encourage the
                                       adoption of promising or innovative education techniques and that they
                                       will disseminate information on program requirements and successes
                                       throughout the state. States previously funded under this program must
                                       include plans outlining provisions for such things as procedures for
                                       resolving disputes over the educational placement of homeless children
                                       and youth and for maintaining appropriate school records for these
                                       children.

                                       Table VII.3 shows the amount of funds authorized and appropriated for
                                       fiscal years 1987-89. Table VII.4 shows the total amount of funds pro-
                                       vided for fiscal year 1988 by state/territory (including the District of
                                       Columbia and the Commonwealth of Puerto Rico).

Table Vll.3: Funds Authorized and
Appropriated for the Education for     Dollars in millions
Hoineless Children and Youth Program                                                             Fiscal year
                                       Funding                                      1987             1988             1989
                                       Authorized                                    $5.0             $5.0             $5.0
                                       Appropriated                                   4.6              4.6              4.8




                                       Page 64                               GAO/RCED-90-52   Status of McKhney   Act Funds
                                           Appendix VII
                                           Homeless Assistauce Programs of the
                                           Department of Education




Table V/l.4 Education for Homeless
Chlldreh and Youth Progrsm-Funds           State/territory’                                                              Amount
          for Fiscal Year 1988 by State/   Alabama                                                                        $81,599
                                           Alaska                                                                          50,000
                                           American Samoa                                                                  50,000
                                           Arizona                                                                         50,000
                                           Arkansas                                                                        50,000
                                           California
                                           --._       _.                                                                  392,330
                                           Colorado                                                                        50,000
                                           Connecticut                                                                     50,000
                                           Delaware                                                                        50,000
                                           District of Columbia                                                            50,000
                                           Florida                                                                        173,356
                                           Georgia                                                                        108,200
                                           Idaho                                                                           50,000
                                           Illinois                                                                       186,639
                                           Indiana                                                                         62,292
                                           Iowa                                                                            50,000
                                           Kansas                                                                          50,000
                                           Kentuckv                                                                        71,971
                                           Louisiana                                                                       98,709
                                           Maine                                                                           50,000
                                           Marvland                                                                        69,676
                                           Massachusetts                                                                   95,448
                                           Michigan                                                                       158,735
                                           Minnesota                                                                       50,000
                                           MississippiI   .
                                                                                                                           75,941
                                           Missouri                                                                        65,611
                                           Montana                                                                         50,000
                                           Nebraska
                                           -__I____                                                                         50,000
                                           Nevada                                                                           50,000
                                           New Hampshire                                                                    50,000
                                           New Jersey                                                                      134,094
                                           New Mexico                                                                       50,000
                                           New York                                                                        422,401
                                           North Carolina                                                                   96,181
                                           North Dakota                                                                     50,000
                                           Ohio                                                                            145,677
                                           Oklahoma                                                                         50,000
                                           Oregon                                                                           50,000
                                           Pennsylvania                                                                    205,060
                                           Puerto Rico                                                                     133,648
                                                                                                                       (continued)



                                           Page 65                               GAO/RCED-90-62   Status of McKinley    Act Funds



                                                                                                                             .--_I
Appendix VII
Homeless Asslstnuce Programs of the
Department of Education




State/territory0                                                                            Amount
Rhode Island                                             --                                   50,000
South Carolina                                             _--_                               63,509
South Dakota --                                 -_____________----_-                          50,000
Tennessee                                                                                     85,897
Texas
-~                                                                                           267,694
Utah                                                                                          50,000
Vermont                                                                                       50,000
Virginia
.--.                                                                                          80,942
Virgin Islands                                                      ______--                  50,000
Washington                                                                                    50,100
West Virginia                                                                                 50,000
Wisconsin                                           ___.__-                                   61,210
Wyoming                                                                                       50,000
Total                                                                                    $4.787.000
aHawaii, Guam, and the Northern Marianas did not apply for funds. The amounts normally allocated to
them were reallocated to the other states and territories.




Page 66                                          GAO/RCED-90-52     Status of McKiuuey    Act Funds
Appendix VIII

HomelessAssistance Programs of the
Department of Labor

                        This appendix provides descriptions of the Department of Labor’s home-
                        less assistance programs. These programs are the Homeless Veterans
                        Reintegration Projects (HVRP) and the Job Training for the Homeless
                        Demonstration Program.



HomelessVeterans
Re$tegration Projects

Ho9 the Program Works   The Homeless Veterans Reintegration Projects are designed to expedite
                        the reintegration of homeless veterans into the labor force. The pur-
                        poses of the program are to (1) contact and open communication chan-
                        nels with homeless veterans, (2) help homeless veterans take advantage
                        of the other social service benefits for which they are eligible, and (3)
                        assist them in reentering the job market.

                        This program grew out of a l-year demonstration pilot program called
                        Jobs for Homeless Veterans, which was funded under the Job Training
                        Partnership Act. The pilot program demonstrated that using outreach
                        workers to interact between homeless veterans and the bureaucracy,
                        which could provide them with needed services, was an effective
                        method of serving this population.

                        The Department of Labor, through its Office of the Assistant Secretary
                        for Veterans’ Employment and Training, has provided grants to 16
                        projects across the country that demonstrate innovative methods of
                        employing and assisting homeless veterans in this way. The major focus
                        of the current projects is to provide employment and training services
                        such as job counseling, resume preparation, job search assistance, reme-
                        dial and vocational education, on-the-job training, and job placement. In
                        addition, supportive services deemed necessary to assist a veteran to
                        enter the workforce and to regain self-sufficiency may be provided
                        directly by the project, or by referral to other resources. Such assistance
                        may be for transportation, clothes, or tools needed for employment; or
                        alcohol and drug treatment referrals and psychiatric counseling. The
                        projects also access temporary housing through a variety of resources to
                        assist the veteran returning to work in need of transitional housing.




                        Page 67                             GAO/RCED-90-62   Status of McKinney   Act Funds
                       Appendix VIJI
                       Homelese Aesistance Progranw of the
                       Department of Labor




Decision Process for   The Department awards grants to states, counties, and municipalities
                       although grantees may use other public agencies or private, nonprofit
Providing Funds        organizations to carry out the demonstration projects. For fiscal year
                       1989, the Department only provided renewal funding to the 16 projects
                       originally funded in fiscal year 1988.

                       In funding the original 15 projects, the Department limited the applica-
                       tions to (1) the 35 largest cities and (2) state and local public agencies in
                       jurisdictions which were served through the Jobs for Homeless Veterans
                       Program, This was done for two reasons: to target funds to areas which
                       the Department believed had the largest homeless populations, and to
                       facilitate projects’ efforts to develop linkages with other social services
                       and other McKinney Act programs, thus maximizing the amount of
                       funds provided.

                       The applications were reviewed against four criteria:

                       The applicant’s understanding of its homeless population and the
                       number of homeless veterans the project would serve.
                       The project’s approach and design, in particular the proposal’s employ-
                       ment focus, outreach services to be conducted by former homeless veter-
                       ans, and linkages to other community services.
                       The extent to which the legislative objectives would be met (i.e., the
                       number of homeless placed in jobs).
                       The cost-effectiveness of the proposal (i.e., its use of resources available
                       through other programs and the community).

                       The proposals were evaluated by the program director, an official from
                       the Department’s Employment and Training Administration (ETA),
                       which has overall responsibility for the Department’s homeless assis-
                       tance programs, and an outside consultant who had conducted the eval-
                       uation of the Job for Homeless Veterans pilot program. The proposals
                       were scored and ranked, with funding primarily based on the score of
                       each proposal. However, the Department did reserve the right to fund
                       out of sequence if doing so seemed more appropriate, such as to obtain
                       more complete geographic coverage.

                       Table VIII.1 shows the amount of funds authorized and appropriated for
                       fiscal years 1987-89. Table VIII.2 shows the total amount of funds pro-
                       vided for fiscal year 1989 by state.




                       Page 68                               GAO/RCED-90-82   Status of McKinney   Act Funds
                                           Appendix VIII
                                           Homeless Assistance Programs of the
                                           Department of Labor




Table Vlill.1: Funds Authorized and
Appropiiated for the Homeless Veterans     Dollars in millions
Reintegration Projects                                                                                                 Fiscal year
                                           Funding                                                      1987               1988               1989
                                           Authorized                          -                           $0               $2.0”              $2.2”
                                           Appropriated                                                     0                1.9b               1.9b
                                           ‘The authorization for this program was contained in the larger authorization for the Job Training Dem-
                                           onstration Program provided for in P.L. 100-77 and discussed later in this appendix.

                                           bThe appropriation for this program was part of the larger appropriation for the Job Training Demonstra-
                                           tion Program, discussed later in this appendix.


Table V 11.2:Homeless Veterans
Reinteg ation Projects-Funds    Provided   State’                                                                                         Amount
for Fist I I Year 1989 by State            California                                                                                     $236,000
                                           Colorado                                                                                        100,000
                                           Florida                                                                                         123,000
                                           Georaia                                                                                          83,000
                                           Massachusetts                                                                                   118,000
                                           Michigan                                                                                         90,000
                                           Missouri                                                                                         84,000
                                           New York                                                                                         97,000
                                           Oreaon                                                                                          101,000
                                           Pennsylvania                                                                                     68,000
                                           Tennessee                                                                                       130,000
                                           Texas                                                                                           100,000
                                           Washinaton                                                                                      218,000
                                           Wisconsin                                                                                        49,000
                                           Total                                                                                       $1 ,605,000b
                                           aFunds were provided to demonstration projects in these states.
                                           &rhe discrepancy between the total amount of fiscal year 1989 funds provided and the program’s fiscal
                                           year 1989 appropriation is due to funds used for administrative and evaluation costs.




                       w




                                           Page 69                                            GAO/RCED-90-62      Status of McKinney     Act Funds
                         Appendix VIII
                         Homelew Assistance Programa of the
                         Department of Labor




J8b Training for the
Homeless
Dhmonstration
Ptogram

H(IW the Program Works   The Job Training for the Homeless Demonstration Program, adminis-
                         tered by the Department’s ETA, provides funds to job-training demon-
                          stration projects that serve homeless persons, age 14 years and older.
                         These projects can provide remedial education activities, job counseling,
                         job search services, job training, basic skills instruction, supportive ser-
                         vices, outreach, and coordination with related community programs.

                         The purpose of this demonstration program is to provide information
                         and direction for the future of job-training programs for homeless Amer-
                         icans. One goal is to collect information on the most effective ways to
                         provide employment and training services to homeless persons. Another
                         goal is to learn how states; local public agencies; private, nonprofit orga-
                         nizations; and businesses can develop effective systems of coordination
                         to address the causes of homelessness and meet the needs of homeless
                         persons. To measure the progress toward these goals, each grantee must
                         conduct individual project evaluations and participate in a national
                         evaluation conducted by the Department.

                         Of the projects supported in the past by the program, most providers
                         offered a variety of services to help homeless persons, focusing on job
                         employment skills (i.e., vocational training) as well as job services (i.e.,
                         counseling and job search techniques). In addition, basic skills courses
                         such as remedial math and reading courses are also provided by many
                         programs. Typically, projects incorporated a support services compo-
                         nent into their programs, either providing some themselves or referring
                         and coordinating with other programs; some provided housing to their
                         participants. While many programs served all homeless individuals who
                         applied, several did target their programs to certain subgroups, such as
                         families, the mentally ill, and youths.


Decision Process for     Program grants are awarded by a competitive process to eligible grant
Providing Funds          recipients, which include state and local public agencies; private, non-
                         profit organizations; private industrial councils; private businesses; and
                         Indian tribes. Applicants’ proposals are evaluated on the (1) need for


                         Page 70                              GAO/RCED-90-52   Status of McKinney   Act F’unds
                                            Appendix VIII
                                            Homeless Assistance Programs of the
                                            Department of Labor




                                            the project (the problems of the homeless in the applicant’s state/local-
                                             ity to which the project will address itself), (2) project methodology (the
                                            project’s plan for conducting outreach and coordination as well as a
                                             timetable for such activities), (3) evaluation methodology (indicators to
                                            measure the success of the project), (4) expected outcomes (the project’s
                                             accomplishments in concrete and measurable terms), (5) level of effort
                                            (resources needed to conduct the project), and (6) organizational capa-
                                            bility (the organizational structure of the entity responsible for the pro-
                                            ject). Because of the multiple problems and needs of many homeless
                                            individuals, ETA gives special consideration to proposals specializing in
                                             adult job training that provide a continuity of service to individuals
                                            from application through the end of the retention-in-employment period.
                                             In addition, proposals are to provide matching funds for between 10 to
                                             50 percent of the cost of the project. The funds must come from
                                            nonfederal sources.

                                            Table VIII.3 shows the amount of funds authorized and appropriated for
                                            fiscal years 1987-89. Table VIII.4 shows the total amount of funds pro-
                                            vided in fiscal year 1989 by state (including the District of Columbia).

Table V[lM: Funds Authorized and
Appropiiated for the Job Training for the   Dollars in millions
Homelejm Demonstration Program                                                                                           Fiscal year
                                            Funding                                                       1987               1988                1989
                                            Authorized                                                       $0              $lo.oa              $10.8
                                            Awxowiated                                                        0                 7.6b               7.6b
                                            aFor fiscal years 1988 and 1989, this program was authorized a total of $12 million and $13 million,
                                            respectively. However, $2 million in fiscal year 1988 and $2.2 million in fiscal year 1989 were earmarked
                                            for the HVRP.

                                            bFor fiscal years 1988 and 1989, this program was appropriated a total of $9.5 million. However, $1.9
                                            million in fiscal year 1988 and 1989 were earmarked for the HVRP.




                                            Page 71                                             GAO/RCED-90452Status
                                                                                                                ofMcKinneyActPunds
                                          Appendix VIII
                                          Homeless Assistance Progranw      of the
                                          Department of Labor




Table V111.4:Job Training for the
Ho eless Demonstration Program-           State*                                                                                            Amount
Fun% s Provided for Fiscal Year 1999 by   California
                                          --...-    -                                                                                   $862,961
Stel/e                                                                                                                                    249,520
                                          Connecticut
                                          District of Columbia                                                                            664,774
                                          Illinois                                                                                        331,086
                                          Kentucky                                                                                        856,470
                                          Minnesota                                                                                       598,495
                                          New Jersey                                                                                      600,000
                                          New York                                                                                        595,653
                                          North Carolina                                                                                  153,184
                                          Ohio                                                                                            187,891
                                          Oregon                                                                                          448,207
                                          Pennsylvania                                                                                    318,729
                                          Tennessee                                                                                       248,580
                                          Texas                                                                                           434,059
                                          Virginia                                                                                        125,829
                                          Washington                                                                                      133,562
                                          Total                                                                                       $6,609,000b
                                          aFunds were provided to demonstration projects in these states and in the District of Columbia.
                                          bThe discrepancy between the total amount of fiscal year 1989 funds provided and the program’s fiscal
                                          year 1989 appropriation is due to funds used for a national evaluation of this program.




                                          Page 72                                            GAO/RCED-90-52      Status of McKinney    Act Funds
Appendix IX

Infbrmation on the Interagency Council on
thd Homeless

                            This appendix provides information on the purpose and activities of the
                            Interagency Council on the Homeless, an independent council created by
                            the McKinney Act.


      I
TnteqagencyCouncil
on the Homeless

How the Council Works       Title II of the Stewart B. McKinney Homeless Assistance Act created the
                            Interagency Council on the Homeless as an independent organization
                            within the executive branch whose main purpose is to oversee federal
                            homeless programs and to coordinate the delivery of funds and services
                            to those in need. Specifically, the McKinney Act requires the Council to

                        .   review all federal activities and programs to assist homeless individuals;
                        .   reduce duplication of effort between federal agencies’homeless assis-
                            tance programs;
                        .   monitor, evaluate, and recommend improvements in these programs;
                        .   provide technical assistance to states, local governments, and other pri-
                            vate and nonprofit organizations;
                        .   collect and disseminate information relating to homelessness;
                        .   prepare bimonthly bulletins describing resources available to the states
                            and other providers as well as application deadlines for the various fed-
                            eral programs; and
                        .   prepare an annual report to the President and the Congress.

                            Membership on the Council consists of the heads, or their designees, of
                            11 cabinet departments; FEMA,ACTION, GSA,and the Postal Service; plus
                            heads of other federal entities as determined by the Council. For exam-
                            ple, the Council recently added a designee from the Office of Manage-
                            ment and Budget to its membership. The Council members elect a Chair
                            and Vice-Chair; at present, these positions are held by the Secretary of
                            Housing and Urban Development and the Secretary of Health and
                            Human Services, respectively.

                            The daily operating activities of the Council are managed by an Execu-
                            tive Director, appointed by the Council, and staff hired by the Director.
                            In addition to the headquarters staff, the Council has requested its mem-
                            ber agencies to designate coordinators in each of their federal regional
                            offices to assist the Council in carrying out its mandate of providing
                            technical assistance to states, localities, and private nonprofit agencies


                            Page 73                             GAO/RCEDBO-62   Status of McKinney   Act Funds
                                           Appendix IX
                                           Information  on the Interagency   Council   on
                                           the Homeless




                                           on homeless assistance programs. At present, a staff person from each
                                           of HUD’Sregional offices is assigned full-time to act as the Council’s lead
                                           regional coordinator. Regional coordinators’ duties include arranging
                                           state and local conferences, holding monthly meetings with other
                                           regional coordinators as well as with state and local organizations,
                                           responding to inquiries on homeless programs, and submitting weekly
                                           reports to the Council on highlights of regional activities.

                                           The Council’s activities include publishing bimonthly bulletins (which
                                           contain information on programs and application deadlines), newsletters
                                           (which provide general information about the Council’s activities and
                                           topics on homelessness), holding regional conferences that serve as an
                                           information network for federal, state, and local groups, and writing its
                                           annual report to the Congress.1

                                           Table IX.1 provides the amount of funds authorized and appropriated
                                           for fiscal years 1987-89.

Tqble 1X.1: Funds Authorized and
Appropriated for the Interagency Council   Dollars in millions
on the Homeless                                                                                                      Fiscal year
                                           Funding                                                    1997               1989               1985
                                           Authorized                                                  $0.2              $2.50               $1 .I
                                           Appropriated                                                 0.0               0.75a                   1.1
                                           aThe Council actually received a total of $950,000 in fiscal year 1988~$750,000 was transferred from
                                           HUD’s Supportive Housing Demonstration Program and $200,000 was transferred from the HHS Task
                                           Force on the Homeless.




                                           ‘For more information on the Council and its effectiveness, see Status of the Activities of the Inter-
                                           agency Council on the Homeless (GAO/T-RCED-89-16, Mar. 16, 1989), and Homelessness:Additional
                                           Information on the Interagency Council on the Homeless (GAO/RCED-89-2&W             Sept. 22,1989).



                                           Page 74                                           GAO/RCED-90-52      Status of McRinney    Act Funds
qPpen&x X

In@mation on the Surplus Property pr~gOgram


                        This appendix provides information on the purpose of the Surplus Prop-
                        erty Program and a general overview of how the program works.’

     I

Surp/lusProperty
Progixrn

How the Program Works   The purpose of the Surplus Property Program is to make available unu-
                        tilized and underutilized federal property (federal buildings and other
                        federal real properties, including fixtures) that can be used to assist the
                        homeless. These properties consist of land and buildings in urban and
                        rural areas that may be used for shelters, clinics, storage, or administra-
                        tive space.

                        HUD collects information from other landholding agencies about their
                        properties that are unutilized, underutilized, excess, or surplus, and it
                        determines which of the identified properties are suitable to assist the
                        homeless. Suitability criteria have been developed jointly by HUD, GSA,
                        and HHS.

                        Once suitable properties are identified, HUD publishes a list of suitable
                        properties in the Federal Register with the name and telephone number
                        of contact people from whom interested groups can obtain information
                        about the properties and leasing procedures. Leasing procedures are
                        handled by either HHSor the federal landholding agency, depending on
                        who controls the property.


Budget Information      The McKinney Act did not provide money to the federal agencies to
                        carry out this program.




                        ‘At   present, we have an ongoing assignment reviewing this program in more detail.



                        Page 75                                           GAO/RCED-99-52 Status of McKinney Act Funds
Aipendix XI

@I rmlative Amounts Provided Under the
MCKinney Act F?rogramsfor FIsca3.Yeax 1989
by state
               State/territory                                                Amount
               Alabama                                                   $4,829,440
               Alaska                                                        933,030
               American Samoa                                                205,329
               Arizona                                                     8,235,436
               Arkansas                                                 4,580,901
               California                                                49,524,630
               Colorado                                                    6,216,625
               Connecticut                                                 6,662,722
               Delaware                                                      814,171
               District of Columbia                                        8,610,988
               Florida                                                    16,825,532
               Georgia                                                     6,871,594
               Guam                                                          175,496
               Hawaii                                                      1,125,885
               Idaho                                                       1,385,701
               Illinois                                                   178396,543
               Indiana                                                     7,307,400
               Iowa                                                        2,826,608
               Kansas                                                      1,923,86'
               Kentucky                                                    7,108,8X
               Louisiana                                                   9,200,078
               Maine                                                       1579,785
               Maryland                                                       6,209,947
               Massachusetts                                                 13,595,965
               Michigan                                                      15296,716
               Minnesota                                                      8,545,370
               Mississippi                                                    3,209,561
               Missouri                                                      11,134.679
               Montana                                                          932,871
               Nebraska                                                       1,373,021
               ----.
               Nevada                                                         1,070,144
               -__-_
               New Hampshire                                                  3,147,328
               New Jersey                                                    10,347,OlO
               New Mexico                                                     2,114,332
               New York                                                      50,822,932
               North Carolina                                                 4,902,932
               North Dakota                                                     972,080
               Northern Marianas                                                105,090
               Ohio                                                          17,046,943
               Oklahoma                                                       3,574,858
               -~
                                                                            (continued)



               Page 76                GAO/RCED-90-62   Status of McKinney    Act Fbnds
.
        Appendix XI
        Cumulative Amounts Provided Under the
        M&hey     Act Programa for Fiscal Year 1989
        by State




        Stateherritorv                                                                                 Amount
        Orenon                                                                                     io,o54,982
        Palau                                                                                           16,823
        Pennsylvania                                                                               18,825,616
        Puerto Rico                                                                                 5132,266
        Rhode Island                                                                                6,420,686
        South Carolina                                                                              7,610,828
        South Dakota                                                                                   907,909
        Tennessee                                                                                   7,658,396
        Texas                                                                       -              31,608,927
        Trust Territory                                                                                221,021
        Utah                                                                                        2,034,799
        Vermont                                                                                     3,105,245
        Virgin Islands                                                                                 254,673
        Virginia                                                                                   15,216,357
        Washinaton                                                                                 15,394,741
        West Virginia                                                                               4,428,642
        Wisconsin                                                                                   7,689,162
        Wyoming                                                                                      1,073,695
        Total                                                                                   $456,397,15F’
        aThis figure does not add to the total appropriated amount for fiscal year 1989 presented in appendix I
        because, in addition to new funds appropriated in fiscal year 1989, some programs also used carryover
        funds for their fiscal year 1989 awards.




    w




        Page 77                                            GAO/RClXNO-52       Status of McKinney    Act Funds
A$endix XII

Map of Cumulative Amounts Provided Under ’
the McKinney Act Programs for F’iscalYear
1989 by State-Regional Distribution




                        $2 million or IeSS
                ‘~      $240 million

                        $10-20 million

                        $30 million or more




              Page 78                         GAO/RCED-W-62   Status of McKinney   Act Funds
Appendix XIII

Major Corkibutors to This Report


                       Gene Aloise, Assignment Manager
                       Janet L. Mascia, Evaluator-in-Charge
                       Amy Maron, Evaluator
Eco  comic Division,
DeV lopment            Patricia Metz, Evaluator
   9
Was$ington, D.C.




                       Page 79                                GAO/RCED-90-52   Status of McKhney   Act Funds
(386178)
‘I’ht*rt~ is a 25% clisctwnt, 011orciws for 100 or more wpiw   mailed t,o 8
sill&h atldrt~ss.