42 U.S.C. § 11386b — Allocation of amounts and incentives for specific eligible activities

(a) Minimum allocation for permanent housing^* for homeless^* individuals and families with disabilities. (1) From each fiscal year’s funds for this part, at least 30 percent of the money made available for part B and this part must be used for permanent housing for homeless people with disabilities and homeless families that include an adult with a disability or a minor head of household with a disability when no adult is present. (2) When calculating this share, the Secretary^* may not count money used to renew existing-project^* contracts under section 11386c. (3) For an area to which subsection (e) applies regarding subsection (d)(2)(A), the 30-percent figure must be reduced proportionally according to need under section 11386a(b)(2). (4) This requirement is suspended for a year if, after making this allocation, the remaining grant money would not be enough to renew for one year all existing grants that otherwise would be fully funded. (5) It ends when the Secretary finds that at least 150,000 new^* permanent-housing units for homeless people and families with disabilities have been funded under this part since the start of 2001.

(b) Set-aside for permanent housing for homeless families with children. At least 10 percent of each fiscal year’s money for part B and this part must be used to provide or secure permanent housing for homeless families with children.

(c) Treatment^* of amounts for permanent or transitional housing^*. Nothing in this chapter limits the amount an applicant may request under this part for buying, building, or repairing property to develop permanent or transitional housing.

(d) Incentives for proven strategies. (1) The Secretary must give geographic areas bonuses or other incentives for using money under this part on activities proven effective at reducing homelessness generally, reducing it for a particular subpopulation, or meeting the prevention and independent-living goals in section 11386a(b)(1)(F). (2) These activities include—(A) permanent supportive housing for chronically homeless^* people and families; (B) for homeless families, rapid rehousing, short-term flexible subsidies to overcome rehousing barriers, and support focused on increasing income to pay rent, together with measures emphasizing rapid permanent rehousing and funding from mainstream family-service systems such as Temporary Assistance for Needy Families and Child Welfare services; and (C) another activity the Secretary determines, based on research and public notice and comment, has been proven effective for those purposes. (3) As far as practicable, the Secretary must balance incentives among strategies for homeless people, families, and other subpopulations. The Secretary may not create an incentive that specifically discourages collaborative applicants from using their flexibility to serve families with children and youths defined as homeless under other Federal laws.

(e) Incentives for successful implementation. If an area shows that it has fully implemented an activity in subsection (d) for all homeless people and families, or for all members of the targeted subpopulation, it must receive the subsection (d) bonus or incentive. It may use that bonus or incentive for any eligible activity under section 11383 or section 11374(a)(4) and (5), for homeless people generally or for the relevant subpopulation.