S 5534

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IN THE SENATE OF THE UNITED STATES

September 24, 2026

Ms. Smith introduced the following bill; which was read twice and referred to the Committee on Banking, Housing, and Urban Affairs

A BILL

To amend the McKinney-Vento Homeless Assistance Act to authorize a competitive grant program for the construction of shelters and permanent supportive housing, and for other purposes.

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the “Building and Maintaining Homeless Shelters Act”.

SEC. 2. GRANT PROGRAM.

(a) In General.—Title IV of the McKinney-Vento Homeless Assistance Act is amended by adding at the end the following:

“Subtitle E—Grant Program for the Construction of Shelter and Permanent Supportive Housing

“SEC. 495. DEFINITIONS.

“In this subtitle:

“(1) Eligible entity.—The term ‘eligible entity’—

“(A) means—

“(i) a State government;

“(ii) a unit of local government;

“(iii) an Indian tribal government (as defined in section 102 of the Robert T. Stafford Disaster Relief and Emergency Assistance Act (42 U.S.C. 5122));

“(iv) a tribally designated housing entity (as defined in section 4 of the Native American Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4103));

“(v) a public housing agency (as defined in section 3(b) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b))); and

“(vi) an organization described in section 501(c)(3) of the Internal Revenue Code of 1986 and exempt from taxation under section 501(a) of that Code; and

“(B) does not include an individual, a foreign entity, or a sole proprietorship organization.

“(2) Permanent housing.—The term ‘permanent housing’ means—

“(A) community-based housing without a designated length of stay; and

“(B) for which the tenant agrees to a lease—

“(i) with a term of not less than 1 year;

“(ii) that is renewable thereafter for terms that are not less than 1 month long; and

“(iii) that is terminable only for cause.

“(3) Permanent supportive housing.—The term ‘permanent supportive housing’ means permanent housing in which supportive services are provided to assist homeless persons with a disability to live independently, including individuals and families who are homeless (as defined in paragraphs (1), (2), and (4) of the definition of ‘homeless’ under section 578.3 of title 24, Code of Federal Regulations, or any successor regulation).

“(4) Secretary.—The term ‘Secretary’ means the Secretary of Housing and Urban Development.

“SEC. 496. GRANT PROGRAM.

“(a) In General.—The Secretary shall award grants to eligible entities for the purpose of assisting shelters and permanent supportive housing with—

“(1) physical infrastructure needs; and

“(2) increasing the capacity of shelters and the number of units of permanent supportive housing nationwide.

“(b) Application.—An eligible entity seeking a grant under this subtitle shall submit to the Secretary an application at such time, in such format, and containing such information as the Secretary may require.

“(c) Use of Funds.—

“(1) In general.—An eligible entity receiving a grant under this subtitle shall use amounts from the grant—

“(A) for capital costs relating to the construction, rehabilitation, or acquisition of an existing shelter or permanent supportive housing;

“(B) to obtain property to be used for a new shelter or permanent supportive housing; or

“(C) for other capital costs relating to the physical infrastructure needed for housing and preventing, responding to, and ending homelessness, which may include capital costs for—

“(i) energy efficiency improvements of shelter and permanent supportive housing buildings;

“(ii) mobile health clinics;

“(iii) day centers;

“(iv) rapid rehousing;

“(v) safe parking programs;

“(vi) the development of non-congregate shelters, including conversions from commercial structures and hotels and motels;

“(vii) the use of single-room occupancy buildings as shelter;

“(viii) exterior modifications to improve safety and accessibility; and

“(ix) other physical infrastructure needs of shelters or permanent supportive housing.

“(2) Administrative costs.—An eligible entity receiving a grant under this subtitle may use not more than 10 percent of amounts from the grant for the payment of project administrative costs relating to the planning and execution of grant activities.

“(d) Award Selection and Distribution.—In awarding grants to eligible entities under this subtitle, the Secretary—

“(1) shall ensure that, of the amounts appropriated to carry out this subtitle, the Secretary awards—

“(A) 50 percent to support shelters; and

“(B) 50 percent to support permanent supportive housing; and

“(2) may prioritize awarding amounts to carry out projects responding to—

“(A) individuals who are homeless;

“(B) families, youth, and individuals fleeing or attempting to flee domestic violence, dating violence, sexual assault, or stalking;

“(C) youth;

“(D) LGBTQ+ individuals; or

“(E) individuals who are black, indigenous, or people of color.

“(e) Nondiscrimination.—In awarding grants under this subtitle, the Secretary may not—

“(1) discriminate against eligible entities based on the status of the eligible entity as a faith-based group; or

“(2) make awards to eligible entities that discriminate on the basis of sexual orientation, gender identity, or sex stereotype.

“(f) Tribal Set-Aside.—The Secretary shall award not less than 5 percent of the amounts appropriated to carry out this subtitle to eligible entities that are Indian tribal governments or tribally designated housing entities.

“(g) Rural Set-Aside.—The Secretary shall award not less than 40 percent of the amounts appropriated to carry out this subtitle to eligible entities located in rural areas.

“(h) Application of Requirements.—The construction of any project performed using amounts from a grant awarded under this subtitle shall only use—

“(1) materials that comply with domestic content procurement preferences (as defined in section 70912 of the Build America, Buy America Act (41 U.S.C. 8301 note; Public Law 117-58)); and

“(2) laborers and mechanics, including those employed by any contractor or subcontractor, that are paid a prevailing rate of wage in accordance with subchapter IV of chapter 31 of title 40, United States Code.

“SEC. 497. AUTHORIZATION OF APPROPRIATIONS.

“There are authorized to be appropriated to the Secretary to carry out this subtitle $500,000,000 for each of fiscal years 2027 through 2031.”.

(b) Clerical Amendment.—The table of contents in section 101(b) of the McKinney-Vento Homeless Assistance Act (Public Law 100-77, 101 Stat. 482) is amended by inserting after the item relating to section 492 the following:

“Subtitle E—Grant Program for the Construction of Shelter and Permanent Supportive Housing

“Sec. 495. Definitions. “Sec. 496. Grant program. “Sec. 497. Authorization of appropriations.”. <all>