A bill to amend title XVI of the Social Security Act so as to make the provisions thereof relating to limitation on eligibility of individuals in public institutions inapplicable to residents of certain small publicly operated community residence facilities.

Amends Title XVI (Supplemental Security Income for the Aged, Blind, and Disabled) of the Social Security Act to provide that provisions thereof declaring that no person shall be eligible for benefits under such title with respect to any month if for such month he is an inmate of a public institution, shall not apply to individuals staying in a publicly operated community residence which serves no more than 16 residents.

Repeals provisions of title XVI which reduce payments made under such title by an amount equal to the amount of any payment made by a State on account of care provided by an institution to such individual as an inpatient of such institution.

Directs the States to establish or designate one or more State or local authorities which shall establish, maintain, and insure the enforcement of standards for any category of institution, foster homes, or group living arrangements.