Community and Family Living Amendments Act of 1983

Community and Family Living Amendments Act of 1983 - Amends title XIX (Medicaid) of the Social Security Act to require a State plan to provide that a severely disabled individual entitled to medical assistance shall receive such assistance only if such individual resides in a community or family living facility. Permits a severely disabled individual residing in a facility other than a community or family living facility to receive assistance only if: (1) medically necessary; and (2) and the total time the individual will spend in the other facility does not exceed two years. Sets forth provisions, with respect to a severely disabled individual living in a community or family living facility, on: (1) determining payments to a State; and (2) requirements a State must fulfill to receive payments, including the signing of a community and family living implementation agreement with the Secretary of Health and Human Services.

Defines "severely disabled individual" and "community or family living facility." Lists provisions required in a community and family living implementation agreement.

Increases Medicaid matching payments by five percent for an individual removed from an institution to a community or family living facility, for the first five years such an individual is in the community or family living facility.

Reduces payments to a State if a community or family living facility in the State is found to be out of compliance with applicable standards for care of the mentally retarded. Requires a written report to the Secretary at least once every six months concerning facility compliance.

Authorizes any interested party to bring an action to enjoin a violation of this Act.

Authorizes a State to make community or family living arrangement care and services available to any severely disabled individual under age 18 who spends (or is a member of a family that spends) at least five percent of the individual's or family's adjusted gross income for care and services for such individual.

Sets forth the effective date and transitional provisions which provide for phasing out funding for certain institutions over a ten year period. Exempts from such phasing out facilities presently in operation with 15 or fewer beds.