Home and Community Based Services for the Elderly Act of 1985

Home and Community Based Services for the Elderly Act of 1985 - Amends title XIX (Block Grants) of the Public Health Service Act to authorize a block grant program for home and community based services for the elderly. Authorizes appropriations for FY 1986 through 1988. Allots a State's funds on the basis of its elderly population compared to the elderly population of the nation. Reserves a portion of such allotment for Indian tribes and tribal organizations. States that grants may be used to: (1) identify individuals eligible for services; (2) plan and manage services to be provided to such individuals; (3) educate the public and medical and social service professionals concerning the availability of such services; and (4) encourage and enhance the participation of families and voluntary organizations in the provision of such services. Permits the Secretary of Health and Human Services to provide technical assistance to the States. Prohibits the use of funds for: (1) inpatient services; (2) cash payments to intended recipients; (3) land purchases and construction; and (4) satisfying any requirement for the expenditure of non-Federal funds. Sets forth State application requirements.