pursuant to paragraph (2) of this subsection in an 
amount that is equal to the formula amount deter-
mined for such collaborative applicant. 
‘‘(4) TIMING.—The funding formula required 
under paragraph (2) shall be established by regula-
tions issued, after notice and opportunity for public 
comment, not later than 6 months after the date of 
enactment of this section. 
‘‘(c) USE OF GRANTS.— 
‘‘(1) IN GENERAL.—Subject to paragraphs (2) 
through (4), a collaborative applicant that receives a 
grant under this section may use such grant 
amounts only for eligible activities under section 
415, 423, or 441(b). 
‘‘(2) PERMANENT
SUPPORTIVE
HOUSING
RE-
QUIREMENT.— 
‘‘(A) REQUIREMENT.—Except as provided 
in subparagraph (B), each collaborative appli-
cant that receives a grant under this section 
shall use not less than 75 percent of such grant 
amount for permanent supportive housing, in-
cluding capital costs, rental subsidies, and serv-
ices. 
‘‘(B) EXEMPTION.—The Secretary shall 
exempt a collaborative applicant from the appli-
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cability of the requirement under subparagraph 
(A) if the applicant demonstrates, in accordance 
with such standards and procedures as the Sec-
retary shall establish, that— 
‘‘(i) chronic homelessness has been 
functionally eliminated in the geographic 
area served by the applicant; or 
‘‘(ii) the permanent supportive hous-
ing under development in the geographic 
area served by the applicant is sufficient to 
functionally eliminate chronic homelessness 
once such units are available for occu-
pancy. 
The Secretary shall consider and make a deter-
mination regarding each request for an exemp-
tion under this subparagraph not later than 60 
days after receipt of such request. 
‘‘(3) LIMITATION ON USE FOR ADMINISTRATIVE 
EXPENSES.—Not more than 5 percent of the total 
amount of any grant under this section to a collabo-
rative applicant may be used for costs of administra-
tion. 
‘‘(4) HOUSING FIRST REQUIREMENT.—The Sec-
retary shall ensure that each collaborative applicant 
that receives a grant under this section is imple-
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menting, to the extent possible, and will use such 
grant amounts in accordance with, a Housing First 
model for assistance for homeless persons. 
‘‘(d) RENEWAL FUNDING.—Expiring contracts for 
leasing, rental assistance, or permanent housing shall be 
treated, for purposes of section 429, as expiring contracts 
referred to in subsection (a) of such section. 
‘‘(e) REPORTING TO CONGRESS.— 
‘‘(1) ANNUAL REPORTS.—Not later than the ex-
piration of the 12-month period beginning upon the 
first allocation of amounts made after the date of 
the enactment of this Act pursuant to subsection 
(b)(1), and annually thereafter, the Secretary and 
the United States Interagency Council on Homeless-
ness shall submit a report to the Committees on Fi-
nancial Services and Appropriations of the House of 
Representatives and the Committees on Banking, 
Housing, and Urban Affairs and Appropriations of 
the Senate providing detailed information regarding 
the grants made under this section during the pre-
ceding year, the activities funded with such grant 
amounts, and the impact of such activities on the 
communities where such activities took place. 
‘‘(2) COLLECTION
OF
INFORMATION
BY
SEC-
RETARY.—The Secretary shall require each collabo-
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rative applicant that receives a grant under this sec-
tion to submit such information to the Secretary as 
may be necessary for the Secretary to comply with 
the reporting requirement under paragraph (1). 
‘‘SEC. 452. OUTREACH FUNDING. 
‘‘(a) DIRECT
APPROPRIATION.—There is appro-
priated out of any money in the Treasury not otherwise 
appropriated for each of fiscal years 2022 through 2026, 
$100,000,000, to remain available until expended, to the 
Secretary for grants under this section to provide outreach 
and coordinate services for persons and households who 
are homeless or formerly homeless. 
‘‘(b) GRANTS.— 
‘‘(1) IN GENERAL.—The Secretary shall make 
grants under this section on a competitive basis only 
to collaborative applicants who comply with section 
402. 
‘‘(2) PRIORITY.—The competition for grants 
under this section shall provide priority— 
‘‘(A) to collaborative applicants who sub-
mit plans to make innovative and effective use 
of staff funded with grant amounts pursuant to 
subsection (c); 
‘‘(B) to collaborative applicants for which 
the local governments, within the area served by 
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the applicant, have adopted local policies, such 
as through zoning and regulation, that leverage 
the private sector’s participation to provide 
housing that is reserved and affordable to low- 
, very low-, and extremely low-income house-
holds, as defined by Secretary, for a minimum 
term of 15 years; and 
‘‘(C) to collaborative applicants for which 
the local governments have adopted policies that 
decriminalize homelessness. 
The Secretary shall establish by regulation the proc-
ess and manner that local governments will be evalu-
ated. The Secretary shall ensure that local govern-
ments are not incentivized or otherwise rewarded for 
eliminating or undermining the intent of zoning reg-
ulations or other regulations or policies that estab-
lish fair wages for laborers, ensure health and safety 
of buildings for residents and the general public, 
protect fair housing, establish environmental protec-
tions, establish standards for resiliency, prevent ten-
ant displacement, or any other requirements that the 
Secretary determines it is in the public interest to 
preserve. 
‘‘(c) USE
OF GRANTS.—A collaborative applicant 
that receives a grant under this section— 
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‘‘(1) may use such grant amounts only for pro-
viding case managers, social workers, or other staff 
who conduct outreach and coordinate services for 
persons and households who are homeless or for-
merly homeless; and 
‘‘(2) shall not use grant amounts for any law 
enforcement purposes. 
‘‘(d) TIMING.—The Secretary shall establish the cri-
teria for the competition for grants under this section re-
quired under subsection (b) by regulations issued, after 
notice and opportunity for public comment, not later than 
6 months after the date of enactment of this section.’’. 
SEC. 7. HOUSING TRUST FUND. 
(a) FUNDING.— 
(1) ANNUAL FUNDING.—There is appropriated, 
out of any money in the Treasury not otherwise ap-
propriated, for each of fiscal years 2022 through 
2026, $1,000,000,000, to remain available until ex-
pended, which shall be credited to the Housing 
Trust Fund established pursuant to section 1338 of 
the Federal Housing Enterprises Financial Safety 
and Soundness Act of 1992 (12 U.S.C. 4568) for 
use under such section. 
(2) PRIORITY FOR HOUSING THE HOMELESS.— 
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(A) PRIORITY.—During the first 5 fiscal 
years that amounts are made available under 
this subsection, the Secretary of Housing and 
Urban Development shall ensure that priority 
for occupancy in dwelling units described in 
subparagraph (B) that become available for oc-
cupancy shall be given to persons and house-
holds who are homeless (as such term is defined 
in section 103 of the McKinney-Vento Homeless 
Assistance Act (42 U.S.C. 11302)). 
(B) COVERED DWELLING UNITS.—A dwell-
ing unit described in this subparagraph is any 
dwelling unit that— 
(i) is located in housing that was at 
any time provided assistance with any 
amounts from the Housing Trust Fund re-
ferred to paragraph (1) that were credited 
to such Trust Fund by such paragraph; or 
(ii) is receiving assistance described in 
paragraph (2) with amounts made avail-
able under such paragraph. 
(b) TENANT RENT CONTRIBUTION.— 
(1) LIMITATION.—Subparagraph (A) of section 
1338(c)(7) of the Federal Housing Enterprises Fi-
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nancial Safety and Soundness Act of 1992 (12 
U.S.C. 4568(c)(7)(A)) is amended— 
(A) by striking ‘‘except that not less than 
75 percent’’ and inserting the following: ‘‘except 
that— 
‘‘(i) not less than 75 percent’’; 
(B) by adding at the end the following new 
clause: 
‘‘(ii) notwithstanding any other provi-
sion of law, all rental housing dwelling 
units shall be subject to legally binding 
commitments that ensure that the con-
tribution toward rent by a family residing 
in the dwelling unit shall not exceed 30 
percent of the adjusted income (as such 
term is defined in section 3(b) of the 
United States Housing Act of 1937 (42 
U.S.C. 1437a(b))) of such family; and’’. 
(2) REGULATIONS.—The Secretary of Housing 
and Urban Development shall issue regulations to 
implement section 1338(c)(7)(A)(ii) of the Federal 
Housing Enterprises Financial Safety and Sound-
ness Act of 1992, as added by the amendment made 
by paragraph (1)(B) of this section, not later than 
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the expiration of the 90-day period beginning on the 
date of the enactment of this Act. 
SEC. 8. TECHNICAL ASSISTANCE FUNDS TO HELP STATES 
AND LOCAL ORGANIZATIONS ALIGN HEALTH 
AND HOUSING SYSTEMS. 
(a) FUNDING.—There is hereby made available to the 
Secretary 
of 
Housing 
and 
Urban 
Development 
$20,000,000, to remain available until expended, for pro-
viding technical assistance under section 405 of the 
McKinney-Vento Homeless Assistance Act (42 U.S.C. 
11361(b)) to integrate and coordinate assistance provided 
under the McKinney-Vento Homeless Assistance Act (42 
U.S.C. 11301 et seq.) with health care funded by Federal 
programs, in collaboration with the United States Inter-
agency Council on Homelessness and the Secretary of 
Health and Human Services. 
(b) USE.—In allocating amounts made available by 
subsection (a), the Secretary shall seek to— 
(1) assist States and localities in integrating 
and aligning policies and funding between Medicaid 
programs, behavioral health providers, and housing 
providers to create supportive housing opportunities; 
and 
(2) engage State Medicaid program directors, 
Governors, State housing and homelessness agencies, 
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any other relevant State offices, and any relevant 
local government entities, to assist States in increas-
ing use of their Medicaid programs to finance sup-
portive services for homeless persons. 
(c) PRIORITY.—In using amounts made available 
under this section, the Secretary shall give priority— 
(1) to use for States and localities having the 
highest numbers of chronically homeless persons; 
and 
(2) to assist localities that have adopted local 
policies, such as through zoning and regulation, that 
leverage the private sector’s participation to provide 
and make housing affordable for low-, very low-, and 
extremely low-income household, as defined by the 
Secretary, for a minimum of 15 years. The Sec-
retary shall establish by regulation the process and 
manner that local governments will be evaluated. 
The Secretary shall ensure that local governments 
are not incentivized or otherwise rewarded for elimi-
nating or undermining the intent of zoning regula-
tions or other regulations or policies that establish 
fair wages for laborers, ensure health and safety of 
buildings for residents and the general public, pro-
tect fair housing, establish environmental protec-
tions, establish standards for resiliency, prevent ten-
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