Home and Community Based Services for the Elderly and the Disabled Act of 1983 - Amends title XIX (Block Grants) of the Public Health Service Act to authorize a block grant program for home and community based services. Authorizes appropriations for: (1) FY 1985 for program planning and implementation; and (2) FY 1986 through 1988 for program services.

Allots a State's funds on the basis of its elderly population compared to such national population. Makes Indian tribes or tribal organizations eligible grant recipients.

States that grants may be used to: (1) coordinate existing services and maximize the use of funds under this Act; (2) develop means to identify elderly and disabled individuals who are at risk of institutionalization or who could be deinstitutionalized if home and community based services were available; (3) develop cost-effective services; and (4) provide specified medical and related social, occupational, educational, and supportive services.

Permits the Secretary to provide States with planning and operating technical assistance.

Prohibits the use of funds for: (1) inpatient services; (2) cash payments to intended recipients; (3) land purchase or construction; (4) purchases of major medical equipment; or (5) financial aid to other than public or nonprofit entities.

Sets forth State application provisions, including requirements that public hearings regarding fund distributions be held, the establishing of a State entity to administer such funds and programs.