ment of the appropriate Act making appropriations for the 
Department of Housing and Urban Development for such 
fiscal year. 
‘‘(c) APPLICATIONS.— 
‘‘(1) SUBMISSION TO THE SECRETARY.—To be 
eligible to receive a grant under subsection (a), a 
project sponsor or unified funding agency in a geo-
graphic area shall submit an application to the Sec-
retary at such time and in such manner as the Sec-
retary may require, and containing such information 
as the Secretary determines necessary— 
‘‘(A) to determine compliance with the pro-
gram requirements and selection criteria under 
this subtitle; and 
‘‘(B) to establish priorities for funding 
projects in the geographic area. 
‘‘(2) ANNOUNCEMENT OF AWARDS.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the Secretary shall an-
nounce, within 5 months after the last date for 
the submission of applications described in this 
subsection for a fiscal year, the grants condi-
tionally awarded under subsection (a) for that 
fiscal year.
‘‘(B) TRANSITION.—For a period of up to 
2 years beginning after the effective date under 
section 503 of the Homeless Emergency Assist-
ance and Rapid Transition to Housing Act of 
2008, the Secretary shall announce, within 6 
months after the last date for the submission of 
applications described in this subsection for a 
fiscal year, the grants conditionally awarded 
under subsection (a) for that fiscal year. 
‘‘(d) OBLIGATION, DISTRIBUTION, AND UTILIZATION 
OF FUNDS.— 
‘‘(1) REQUIREMENTS FOR OBLIGATION.— 
‘‘(A) IN
GENERAL.—Not later than 9 
months after the announcement referred to in 
subsection (c)(2), each recipient or project 
sponsor shall meet all requirements for the obli-
gation of those funds, including site control, 
matching funds, and environmental review re-
quirements, except as provided in subpara-
graphs (B) and (C). 
‘‘(B) ACQUISITION, REHABILITATION, OR 
CONSTRUCTION.—Not later than 24 months 
after the announcement referred to in sub-
section (c)(2), each recipient or project sponsor 
seeking the obligation of funds for acquisition
of housing, rehabilitation of housing, or con-
struction of new housing for a grant announced 
under subsection (c)(2) shall meet all require-
ments for the obligation of those funds, includ-
ing site control, matching funds, and environ-
mental review requirements. 
‘‘(C) EXTENSIONS.—At the discretion of 
the Secretary, and in compelling circumstances, 
the Secretary may extend the date by which a 
recipient or project sponsor shall meet the re-
quirements described in subparagraphs (A) and 
(B) if the Secretary determines that compliance 
with the requirements was delayed due to fac-
tors beyond the reasonable control of the recipi-
ent or project sponsor. Such factors may in-
clude difficulties in obtaining site control for a 
proposed project, completing the process of ob-
taining secure financing for the project, obtain-
ing approvals from State or local governments, 
or completing the technical submission require-
ments for the project. 
‘‘(2) OBLIGATION.—Not later than 45 days 
after a recipient or project sponsor meets the re-
quirements described in paragraph (1), the Sec-
retary shall obligate the funds for the grant involved.
‘‘(3) DISTRIBUTION.—A recipient that receives 
funds through such a grant— 
‘‘(A) shall distribute the funds to project 
sponsors (in advance of expenditures by the 
project sponsors); and 
‘‘(B) shall distribute the appropriate por-
tion of the funds to a project sponsor not later 
than 45 days after receiving a request for such 
distribution from the project sponsor. 
‘‘(4) EXPENDITURE OF FUNDS.—The Secretary 
may establish a date by which funds made available 
through a grant announced under subsection (c)(2) 
for a homeless assistance project shall be entirely ex-
pended by the recipient or project sponsors involved. 
The date established under this paragraph shall not 
occur before the expiration of the 24-month period 
beginning on the date that funds are obligated for 
activities described under paragraphs (1) or (2) of 
section 423(a). The Secretary shall recapture the 
funds not expended by such date. The Secretary 
shall reallocate the funds for another homeless as-
sistance and prevention project that meets the re-
quirements of this subtitle to be carried out, if pos-
sible and appropriate, in the same geographic area 
as the area served through the original grant.
‘‘(e) RENEWAL FUNDING FOR UNSUCCESSFUL AP-
PLICANTS.—The Secretary may renew funding for a spe-
cific project previously funded under this subtitle that the 
Secretary determines meets the purposes of this subtitle, 
and was included as part of a total application that met 
the criteria of subsection (c), even if the application was 
not selected to receive grant assistance. The Secretary 
may renew the funding for a period of not more than 1 
year, and under such conditions as the Secretary deter-
mines to be appropriate. 
‘‘(f) CONSIDERATIONS IN DETERMINING RENEWAL 
FUNDING.—When providing renewal funding for leasing, 
operating costs, or rental assistance for permanent hous-
ing, the Secretary shall make adjustments proportional to 
increases in the fair market rents in the geographic area. 
‘‘(g) MORE THAN ONE APPLICATION FOR A GEO-
GRAPHIC AREA.—If more than one collaborative applicant 
applies for funds for a geographic area, the Secretary shall 
award funds to the collaborative applicant with the highest 
score based on the selection criteria set forth in section 
427. 
‘‘(h) APPEALS.— 
‘‘(1) IN GENERAL.—The Secretary shall estab-
lish a timely appeal procedure for grant amounts 
awarded or denied under this subtitle pursuant to a
collaborative application or solo application for fund-
ing. 
‘‘(2) PROCESS.—The Secretary shall ensure 
that the procedure permits appeals submitted by en-
tities carrying out homeless housing and services 
projects (including emergency shelters and homeless-
ness prevention programs), and all other applicants 
under this subtitle. 
‘‘(i) SOLO APPLICANTS.—A solo applicant may sub-
mit an application to the Secretary for a grant under sub-
section (a) and be awarded such grant on the same basis 
as such grants are awarded to other applicants based on 
the criteria described in section 427, but only if the Sec-
retary determines that the solo applicant has attempted 
to participate in the continuum of care process but was 
not permitted to participate in a reasonable manner. The 
Secretary may award such grants directly to such appli-
cants in a manner determined to be appropriate by the 
Secretary. 
‘‘(j) FLEXIBILITY TO SERVE PERSONS DEFINED AS 
HOMELESS UNDER OTHER FEDERAL LAWS.— 
‘‘(1) IN
GENERAL.—A collaborative applicant 
may use not more than 10 percent of funds awarded 
under this subtitle (continuum of care funding) for 
any of the types of eligible activities specified in
paragraphs (1) through (7) of section 423(a) to 
serve families with children and youth defined as 
homeless under other Federal statutes, or homeless 
families with children and youth defined as homeless 
under section 103(a)(6), but only if the applicant 
demonstrates that the use of such funds is of an 
equal or greater priority or is equally or more cost 
effective in meeting the overall goals and objectives 
of the plan submitted under section 427(b)(1)(B), 
especially with respect to children and unaccom-
panied youth. 
‘‘(2) LIMITATIONS.—The 10 percent limitation 
under paragraph (1) shall not apply to collaborative 
applicants in which the rate of homelessness, as cal-
culated in the most recent point in time count, is 
less than one-tenth of 1 percent of total population. 
‘‘(3) TREATMENT OF CERTAIN POPULATIONS.— 
‘‘(A) IN GENERAL.—Notwithstanding sec-
tion 103(a) and subject to subparagraph (B), 
funds awarded under this subtitle may be used 
for eligible activities to serve unaccompanied 
youth and homeless families and children de-
fined as homeless under section 103(a)(6) only 
pursuant to paragraph (1) of this subsection 
and such families and children shall not other-
wise be considered as homeless for purposes of 
this subtitle. 
‘‘(B) AT RISK OF HOMELESSNESS.—Sub-
paragraph (A) may not be construed to prevent 
any unaccompanied youth and homeless families 
and children defined as homeless under section 
103(a)(6) from qualifying for, and being treat-
ed for purposes of this subtitle as, at risk of 
homelessness 
or 
from 
eligibility 
for 
any 
projects, activities, or services carried out using 
amounts provided under this subtitle for which 
individuals or families that are at risk of home-
lessness are eligible.’’. 
SEC. 302. ELIGIBLE ACTIVITIES. 
The McKinney-Vento Homeless Assistance Act is 
amended by striking section 423 (42 U.S.C. 11383) and 
inserting the following new section: 
‘‘SEC. 423. ELIGIBLE ACTIVITIES. 
‘‘(a) IN GENERAL.—Grants awarded under section 
422 to qualified applicants shall be used to carry out 
projects that serve homeless individuals or families that 
consist of one or more of the following eligible activities: 
‘‘(1) Construction of new housing units to pro-
vide transitional or permanent housing.
‘‘(2) Acquisition or rehabilitation of a structure 
to provide transitional or permanent housing, other 
than emergency shelter, or to provide supportive 
services. 
‘‘(3) Leasing of property, or portions of prop-
erty, not owned by the recipient or project sponsor 
involved, for use in providing transitional or perma-
nent housing, or providing supportive services. 
‘‘(4) Provision of rental assistance to provide 
transitional or permanent housing to eligible per-
sons. The rental assistance may include tenant- 
based, project-based, or sponsor-based rental assist-
ance. Project-based rental assistance, sponsor-based 
rental assistance, and operating cost assistance con-
tracts carried out by project sponsors receiving 
grants under this section may, at the discretion of 
the applicant and the project sponsor, have an initial 
term of 15 years, with assistance for the first 5 
years paid with funds authorized for appropriation 
under this Act, and assistance for the remainder of 
the term treated as a renewal of an expiring con-
tract as provided in section 429. Project-based rent-
al assistance may include rental assistance to pre-
serve existing permanent supportive housing for 
homeless individuals and families.
‘‘(5) Payment of operating costs for housing 
units assisted under this subtitle or for the preserva-
tion of housing that will serve homeless individuals 
and families and for which another form of assist-
ance is expiring or otherwise no longer available. 
‘‘(6) Supportive services for individuals and 
families who are currently homeless, who have been 
homeless in the prior 6 months but are currently re-
siding in permanent housing, or who were previously 
homeless and are currently residing in permanent 
supportive housing. 
‘‘(7) Provision of rehousing services, including 
housing search, mediation or outreach to property 
owners, credit repair, providing security or utility 
deposits, rental assistance for a final month at a lo-
cation, assistance with moving costs, or other activi-
ties that— 
‘‘(A) are effective at moving homeless indi-
viduals and families immediately into housing; 
or 
‘‘(B) may benefit individuals and families 
who in the prior 6 months have been homeless, 
but are currently residing in permanent hous-
ing.
‘‘(8) In the case of a collaborative applicant 
that is a legal entity, performance of the duties de-
scribed under section 402(f)(3). 
‘‘(9) Operation of, participation in, and ensur-
ing consistent participation by project sponsors in, a 
community-wide homeless management information 
system. 
‘‘(10) In the case of a collaborative applicant 
that is a legal entity, payment of administrative 
costs related to meeting the requirements described 
in paragraphs (1) and (2) of section 402(f), for 
which the collaborative applicant may use not more 
than 3 percent of the total funds made available in 
the geographic area under this subtitle for such 
costs. 
‘‘(11) In the case of a collaborative applicant 
that is a unified funding agency under section 
402(g), payment of administrative costs related to 
meeting the requirements of that section, for which 
the unified funding agency may use not more than 
3 percent of the total funds made available in the 
geographic area under this subtitle for such costs, in 
addition to funds used under paragraph (10). 
‘‘(12) Payment of administrative costs to 
project sponsors, for which each project sponsor may
use not more than 10 percent of the total funds 
made available to that project sponsor through this 
subtitle for such costs. 
‘‘(b) MINIMUM GRANT TERMS.—The Secretary may 
impose minimum grant terms of up to 5 years for new 
projects providing permanent housing. 
‘‘(c) USE RESTRICTIONS.— 
‘‘(1) ACQUISITION, REHABILITATION, AND NEW 
CONSTRUCTION.—A project that consists of activities 
described in paragraph (1) or (2) of subsection (a) 
shall be operated for the purpose specified in the ap-
plication submitted for the project under section 422 
for not less than 15 years. 
‘‘(2) OTHER ACTIVITIES.—A project that con-
sists of activities described in any of paragraphs (3) 
through (12) of subsection (a) shall be operated for 
the purpose specified in the application submitted 
for the project under section 422 for the duration of 
the grant period involved. 
‘‘(3) CONVERSION.—If the recipient or project 
sponsor carrying out a project that provides transi-
tional or permanent housing submits a request to 
the Secretary to carry out instead a project for the 
direct benefit of low-income persons, and the Sec-
retary determines that the initial project is no longer
needed to provide transitional or permanent housing, 
the Secretary may approve the project described in 
the request and authorize the recipient or project 
sponsor to carry out that project. 
‘‘(d) REPAYMENT OF ASSISTANCE AND PREVENTION 
OF UNDUE BENEFITS.— 
‘‘(1) REPAYMENT.—If a recipient or project 
sponsor receives assistance under section 422 to 
carry out a project that consists of activities de-
scribed in paragraph (1) or (2) of subsection (a) and 
the project ceases to provide transitional or perma-
nent housing— 
‘‘(A) earlier than 10 years after operation 
of the project begins, the Secretary shall re-
quire the recipient or project sponsor to repay 
100 percent of the assistance; or 
‘‘(B) not earlier than 10 years, but earlier 
than 15 years, after operation of the project be-
gins, the Secretary shall require the recipient or 
project sponsor to repay 20 percent of the as-
sistance for each of the years in the 15-year pe-
riod for which the project fails to provide that 
housing. 
‘‘(2) PREVENTION OF UNDUE BENEFITS.—Ex-
cept as provided in paragraph (3), if any property
gram or an equivalent State or local program is 
no longer made available and the project is 
meeting applicable performance standards, pro-
vided that the portion of the project that had 
benefitted from such assistance continues to 
meet the tenant income and rent restrictions for 
low-income units under section 42(g) of the In-
ternal Revenue Code of 1986; or 
‘‘(D) there are no individuals and families 
in the geographic area who are homeless, in 
which case the project may serve individuals 
and families at risk of homelessness. 
‘‘(e) STAFF TRAINING.—The Secretary may allow 
reasonable costs associated with staff training to be in-
cluded as part of the activities described in subsection (a). 
‘‘(f) ELIGIBILITY FOR PERMANENT HOUSING.—Any 
project that receives assistance under subsection (a) and 
that provides project-based or sponsor-based permanent 
housing for homeless individuals or families with a dis-
ability, including projects that meet the requirements of 
subsection (a) and subsection (d)(2)(A) of section 428 
may also serve individuals who had previously met the re-
quirements for such project prior to moving into a dif-
ferent permanent housing project.
‘‘(g) ADMINISTRATION OF RENTAL ASSISTANCE.— 
Provision of permanent housing rental assistance shall be 
administered by a State, unit of general local government, 
or public housing agency.’’. 
SEC. 303. HIGH PERFORMING COMMUNITIES. 
The McKinney-Vento Homeless Assistance Act is 
amended by striking section 424 (42 U.S.C. 11384) and 
inserting the following: 
‘‘SEC. 424. INCENTIVES FOR HIGH-PERFORMING COMMU-
NITIES. 
‘‘(a) DESIGNATION AS A HIGH-PERFORMING COMMU-
NITY.— 
‘‘(1) IN GENERAL.—The Secretary shall des-
ignate, on an annual basis, which collaborative appli-
cants represent high-performing communities. 
‘‘(2) CONSIDERATION.—In determining whether 
to designate a collaborative applicant as a high-per-
forming community under paragraph (1), the Sec-
retary shall establish criteria to ensure that the re-
quirements described under paragraphs (1)(B) and 
(2)(B) of subsection (d) are measured by comparing 
homeless individuals and families under similar cir-
cumstances, in order to encourage projects in the ge-
ographic area to serve homeless individuals and fam-
ilies with more severe barriers to housing stability.
‘‘(3) 2-YEAR PHASE IN.—In each of the first 2 
years after the effective date under section 503 of 
the Homeless Emergency Assistance and Rapid 
Transition to Housing Act of 2008, the Secretary 
shall designate not more than ten collaborative ap-
plicants as high-performing communities. 
‘‘(4) EXCESS OF QUALIFIED APPLICANTS.—If, 
during the 2-year period described under paragraph 
(2), more than ten collaborative applicants could 
qualify to be designated as high-performing commu-
nities, the Secretary shall designate the ten that 
have, in the discretion of the Secretary, the best per-
formance based on the criteria described under sub-
section (d). 
‘‘(5) TIME LIMIT ON DESIGNATION.—The des-
ignation of any collaborative applicant as a high-per-
forming community under this subsection shall be 
effective only for the year in which such designation 
is made. The Secretary, on an annual basis, may 
renew any such designation. 
‘‘(b) APPLICATION.— 
‘‘(1) IN
GENERAL.—A collaborative applicant 
seeking designation as a high-performing community 
under subsection (a) shall submit an application to
the Secretary at such time, and in such manner as 
the Secretary may require. 
‘‘(2) CONTENT OF APPLICATION.—In any appli-
cation submitted under paragraph (1), a collabo-
rative applicant shall include in such application— 
‘‘(A) a report showing how any money re-
ceived under this subtitle in the preceding year 
was expended; and 
‘‘(B) information that such applicant can 
meet the requirements described under sub-
section (d). 
‘‘(3) PUBLICATION OF APPLICATION.—The Sec-
retary shall— 
‘‘(A) publish any report or information 
submitted in an application under this section 
in the geographic area represented by the col-
laborative applicant; and 
‘‘(B) seek comments from the public as to 
whether the collaborative applicant seeking des-
ignation as a high-performing community meets 
the requirements described under subsection 
(d). 
‘‘(c) USE OF FUNDS.—Funds awarded under section 
422(a) to a project sponsor who is located in a high-per-
forming community may be used—
‘‘(1) for any of the eligible activities described 
in section 423; or 
‘‘(2) for any of the eligible activities described 
in paragraphs (4) and (5) of section 415(a). 
‘‘(d) DEFINITION
OF HIGH-PERFORMING COMMU-
NITY.—For purposes of this section, the term ‘high-per-
forming community’ means a geographic area that dem-
onstrates through reliable data that all five of the fol-
lowing requirements are met for that geographic area: 
‘‘(1) TERM
OF
HOMELESSNESS.—The mean 
length of episodes of homelessness for that geo-
graphic area— 
‘‘(A) is less than 20 days; or 
‘‘(B) for individuals and families in similar 
circumstances in the preceding year was at 
least 10 percent less than in the year before. 
‘‘(2) FAMILIES LEAVING HOMELESSNESS.—Of 
individuals and families— 
‘‘(A) who leave homelessness, fewer than 5 
percent of such individuals and families become 
homeless again at any time within the next 2 
years; or 
‘‘(B) in similar circumstances who leave 
homelessness, the percentage of such individ-
uals and families who become homeless again
within the next 2 years has decreased by at 
least 20 percent from the preceding year. 
‘‘(3) COMMUNITY
ACTION.—The communities 
that compose the geographic area have— 
‘‘(A) actively encouraged homeless individ-
uals and families to participate in homeless as-
sistance services available in that geographic 
area; and 
‘‘(B) included each homeless individual or 
family who sought homeless assistance services 
in the data system used by that community for 
determining compliance with this subsection. 
‘‘(4) EFFECTIVENESS
OF
PREVIOUS
ACTIVI-
TIES.—If recipients in the geographic area have 
used funding awarded under section 422(a) for eligi-
ble activities described under section 415(a) in pre-
vious years based on the authority granted under 
subsection (c), that such activities were effective at 
reducing the number of individuals and families who 
became homeless in that community. 
‘‘(5) FLEXIBILITY TO SERVE PERSONS DEFINED 
AS
HOMELESS
UNDER
OTHER
FEDERAL
LAWS.— 
With respect to collaborative applicants exercising 
the authority under section 422(j) to serve homeless 
families with children and youth defined as homeless
under other Federal statutes, effectiveness in achiev-
ing the goals and outcomes identified in subsection 
427(b)(1)(F) according to such standards as the 
Secretary shall promulgate. 
‘‘(e) COOPERATION AMONG ENTITIES.—A collabo-
rative applicant designated as a high-performing commu-
nity under this section shall cooperate with the Secretary 
in distributing information about successful efforts within 
the geographic area represented by the collaborative appli-
cant to reduce homelessness.’’. 
SEC. 304. PROGRAM REQUIREMENTS. 
Section 426 of the McKinney-Vento Homeless Assist-
ance Act (42 U.S.C. 11386) is amended— 
(1) by striking subsections (a), (b), and (c) and 
inserting the following: 
‘‘(a) SITE CONTROL.—The Secretary shall require 
that each application include reasonable assurances that 
the applicant will own or have control of a site for the 
proposed project not later than the expiration of the 12- 
month period beginning upon notification of an award for 
grant assistance, unless the application proposes providing 
supportive housing assistance under section 423(a)(3) or 
housing that will eventually be owned or controlled by the 
families and individuals served. An applicant may obtain 
ownership or control of a suitable site different from the
site specified in the application. If any recipient or project 
sponsor fails to obtain ownership or control of the site 
within 12 months after notification of an award for grant 
assistance, the grant shall be recaptured and reallocated 
under this subtitle. 
‘‘(b) REQUIRED AGREEMENTS.—The Secretary may 
not provide assistance for a proposed project under this 
subtitle unless the collaborative applicant involved 
agrees— 
‘‘(1) to ensure the operation of the project in 
accordance with the provisions of this subtitle; 
‘‘(2) to monitor and report to the Secretary the 
progress of the project; 
‘‘(3) to ensure, to the maximum extent prac-
ticable, that individuals and families experiencing 
homelessness are involved, through employment, pro-
vision of volunteer services, or otherwise, in con-
structing, rehabilitating, maintaining, and operating 
facilities for the project and in providing supportive 
services for the project; 
‘‘(4) to require certification from all project 
sponsors that— 
‘‘(A) they will maintain the confidentiality 
of records pertaining to any individual or family
provided family violence prevention or treat-
ment services through the project; 
‘‘(B) that the address or location of any 
family violence shelter project assisted under 
this subtitle will not be made public, except 
with written authorization of the person respon-
sible for the operation of such project; 
‘‘(C) they will establish policies and prac-
tices that are consistent with, and do not re-
strict the exercise of rights provided by, subtitle 
B of title VII, and other laws relating to the 
provision of educational and related services to 
individuals and families experiencing homeless-
ness; 
‘‘(D) in the case of programs that provide 
housing or services to families, they will des-
ignate a staff person to be responsible for en-
suring that children being served in the pro-
gram are enrolled in school and connected to 
appropriate services in the community, includ-
ing early childhood programs such as Head 
Start, part C of the Individuals with Disabil-
ities Education Act, and programs authorized 
under subtitle B of title VII of this Act(42 
U.S.C. 11431 et seq.); and
‘‘(E) they will provide data and reports as 
required by the Secretary pursuant to the Act; 
‘‘(5) if a collaborative applicant is a unified 
funding agency under section 402(g) and receives 
funds under subtitle C to carry out the payment of 
administrative costs described in section 423(a)(11), 
to establish such fiscal control and fund accounting 
procedures as may be necessary to assure the proper 
disbursal of, and accounting for, such funds in order 
to ensure that all financial transactions carried out 
with such funds are conducted, and records main-
tained, in accordance with generally accepted ac-
counting principles; 
‘‘(6) to monitor and report to the Secretary the 
provision of matching funds as required by section 
430; 
‘‘(7) to take the educational needs of children 
into account when families are placed in emergency 
or transitional shelter and will, to the maximum ex-
tent practicable, place families with children as close 
as possible to their school of origin so as not to dis-
rupt such children’s education; and 
‘‘(8) to comply with such other terms and con-
ditions as the Secretary may establish to carry out 
this subtitle in an effective and efficient manner.’’;
(2) by redesignating subsection (d) as sub-
section (c); 
(3) in the first sentence of subsection (c) (as so 
redesignated by paragraph (2) of this subsection), by 
striking ‘‘recipient’’ and inserting ‘‘recipient or 
project sponsor’’; 
(4) by striking subsection (e); 
(5) by redesignating subsections (f), (g), and 
(h), as subsections (d), (e), and (f), respectively; 
(6) in the first sentence of subsection (e) (as so 
redesignated by paragraph (5) of this section), by 
striking ‘‘recipient’’ each place it appears and insert-
ing ‘‘recipient or project sponsor’’; 
(7) by striking subsection (i); and 
(8) by redesignating subsection (j) as sub-
section (g). 
SEC. 305. SELECTION CRITERIA, ALLOCATION AMOUNTS, 
AND FUNDING. 
The McKinney-Vento Homeless Assistance Act is 
amended— 
(1) by repealing section 429 (42 U.S.C. 11389); 
and 
(2) by redesignating sections 427 and 428 (42 
U.S.C. 11387, 11388) as sections 432 and 433, re-
spectively; and
(3) by inserting after section 426 the following 
new sections: 
‘‘SEC. 427. SELECTION CRITERIA. 
‘‘(a) IN GENERAL.—The Secretary shall award funds 
to recipients through a national competition between geo-
graphic areas based on criteria established by the Sec-
retary. 
‘‘(b) REQUIRED CRITERIA.— 
‘‘(1) IN
GENERAL.—The criteria established 
under subsection (a) shall include— 
‘‘(A) the previous performance of the re-
cipient regarding homelessness, including per-
formance related to funds provided under sec-
tion 412 (except that recipients applying from 
geographic areas where no funds have been 
awarded under this subtitle, or under subtitles 
C, D, E, or F of title IV of this Act, as in effect 
prior to the date of the enactment of the Home-
less Emergency Assistance and Rapid Transi-
tion to Housing Act of 2008, shall receive full 
credit for performance under this subpara-
graph), measured by criteria that shall be an-
nounced by the Secretary, that shall take into 
account barriers faced by individual homeless 
people, and that shall include—