distress is determined with respect to jurisdictions 
under section 220(d) (42 U.S.C. 12750(d)). 
‘‘(3) QUALIFICATION OF SERVICES FUNDING FOR 
MATCH.—For purposes of meeting the requirements of 
paragraph (1), amounts that a grantee, recipient, or 
other governmental or private agency or entity com-
mits to contribute to provide services to residents of 
affordable housing provided using grant amounts 
under this subtitle, by entering into a binding com-
mitment for such contribution as the Secretary shall 
require, shall be considered contributions to eligible 
activities. Amounts to be considered eligible contribu-
tions under this paragraph shall not exceed 33 per-
cent of the total cost of the eligible activity. 
‘‘(4) REDUCTION OR WAIVER FOR CERTAIN AC-
TIVITIES.—With 
respect 
to 
Trust 
Fund 
grant 
amounts made available for a fiscal year, the Sec-
retary shall reduce or waive the amount of contribu-
tions otherwise required under paragraph (1) to be 
made with respect to eligible activities to be carried 
out with such grant amounts and for which any vari-
ance from zoning laws or other waiver of regulatory 
requirements was approved by the local jurisdiction. 
Such reduction may be implemented in the year fol-
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lowing the year in which such activities are funded 
with Trust Fund grant amounts. 
‘‘(5) WAIVER FOR DISASTER AREAS.—In the case 
of any area that is subject to a declaration by the 
President of a major disaster or emergency under the 
Robert T. Stafford Disaster Relief and Emergency As-
sistance Act (42 U.S.C. 5121), the Secretary shall, for 
the fiscal year following such declaration, waive the 
requirement under paragraph (1) with respect to any 
eligible activities to be carried out in such area. 
‘‘(g) COMPETITIVE GRANTS FOR INDIAN TRIBES.—For 
each fiscal year referred to in section 293(a), the Secretary 
shall, using amounts allocated for Indian tribes pursuant 
to subsection (a)(2)(B) or (c)(2), as applicable, and subject 
to subsection (f), make grants to Indian tribes on a competi-
tive basis, based upon such criteria as the Secretary shall 
establish, which shall include the factors specified in section 
295(c)(2)(B). 
‘‘(h) USE BY STATE OF UNUSED FUNDS OF LOCAL JU-
RISDICTIONS.—If any participating local jurisdiction for 
which an allocation is made for a fiscal year pursuant to 
this section notifies the Secretary of an intent not to use 
all or part of such funds, any such funds that will not be 
used by the jurisdiction shall be added to the grant award 
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under subsection (e) for the State in which such jurisdiction 
is located. 
‘‘(i) COMPETITIVE GRANTS FOR AREAS WITHOUT AL-
LOCATION PLANS AND RECIPIENTS WITH INSUFFICIENT 
MATCHING CONTRIBUTIONS.— 
‘‘(1) AVAILABLE AMOUNTS.—For a fiscal year, 
the following amounts shall be available for grants 
under this subsection: 
‘‘(A) ALLOCATION FOR AREAS NOT SUBMIT-
TING ALLOCATION PLANS.—With respect to each 
State, insular area, or participating local juris-
diction that has not, before the expiration of the 
12-month period beginning upon the date of the 
publication of the notice of funding availability 
for such fiscal year under subsection (b)(4), sub-
mitted to and had approved by the Secretary an 
allocation plan for such fiscal year meeting the 
requirements of section 295, the amount of the 
allocation for such State, insular area, or par-
ticipating local jurisdiction for such fiscal year 
determined under this section. 
‘‘(B) UNMATCHED
PORTION
OF
ALLOCA-
TION.—With respect to any grantee for which the 
Trust Fund grant amount awarded for such fis-
cal year is reduced from the amount of the allo-
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cation determined under this section for the 
grantee by reason of failure comply with the re-
quirements under subsection (f), the amount by 
which such allocation for the grantee for the fis-
cal year exceeds the Trust Fund grant amount 
for the grantee for the fiscal year. 
‘‘(C) UNCOMMITTED AMOUNTS.—Any Trust 
Fund grant amounts for a fiscal year that are 
not committed for use for eligible activities before 
the expiration of the 24-month period beginning 
upon the date of the publication of the notice of 
availability of amounts under subsection (b)(4) 
for such fiscal year. 
‘‘(D) UNUSED AMOUNTS.—Any Trust Fund 
grant amounts for which the grantee notifies the 
Secretary that such funds will not be used under 
this subtitle. 
‘‘(2) NOTICE.—For each fiscal year, not later 
than 60 days after the date that the Secretary deter-
mines that the amounts described in paragraph (1) 
shall be available for grants under this subsection, the 
Secretary shall cause to be published in the Federal 
Register a notice that such amounts shall be so avail-
able. 
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‘‘(3) APPLICATIONS.—The Secretary shall pro-
vide for nonprofit and public entities (and consortia 
thereof, which may include regional consortia of units 
of local government) to submit applications, during 
the 9-month period beginning upon publication of a 
notice of funding availability under paragraph (2) 
for a fiscal year, for a grant of all or a portion of 
the amounts referred to in paragraph (1) for such fis-
cal year. Such an application shall include a certifi-
cation that the applicant will comply with all re-
quirements of this subtitle applicable to a grantee 
under this subsection. 
‘‘(4) SELECTION CRITERIA.—The Secretary shall, 
by regulation, establish criteria for selecting appli-
cants that meet the requirements of paragraph (3) for 
funding under this subsection. Such criteria shall give 
priority to applications that provide that grant 
amounts under this subsection will be used for eligible 
activities relating to affordable housing that is located 
in the State or insular area, as applicable, for which 
such grant funds were originally allocated under this 
section. 
‘‘(5) AWARD AND USE OF GRANT ASSISTANCE.— 
‘‘(A) AWARD.—Subject only to the absence 
of applications meeting the requirements of 
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paragraph (3), upon the expiration of the period 
referred to in such paragraph, the Secretary 
shall select an applicant or applicants under this 
subsection to receive the amounts available under 
paragraph (1) and shall make a grant or grants 
to such applicant or applicants. The selection 
shall be based upon the criteria established under 
paragraph (4). 
‘‘(B) USE.—Amounts from a grant under 
this subsection shall be Trust Fund grant 
amounts for purposes of this subtitle. 
‘‘SEC. 295. ALLOCATION PLANS. 
‘‘(a) IN GENERAL.—Each grantee that is a State, insu-
lar area, participating local jurisdiction, or grantee under 
section 294(i) for a fiscal year, shall establish an allocation 
plan in accordance with this section for the distribution 
of Trust Fund grant amounts provided to the grantee for 
such fiscal year, which shall be a plan that— 
‘‘(1) provides for use of such amounts in accord-
ance with section 296; 
‘‘(2) is based on priority housing needs, includ-
ing priority housing needs in rural areas, as deter-
mined by the grantee; and 
‘‘(3) is consistent with the comprehensive housing 
affordability strategy under section 105 (42 U.S.C. 
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12705) or any applicable consolidated submission 
used for purposes of applying for other community 
planning and development and housing assistance 
programs administered by the Secretary, for the ap-
plicable State, insular area, jurisdiction, or grantee 
under section 294(i). 
‘‘(b) ESTABLISHMENT.—In establishing an allocation 
plan, a grantee described in subsection (a) shall notify the 
public of the establishment of the plan, provide an oppor-
tunity for public comments regarding the plan, consider 
any public comments received, and make the completed 
plan available to the public. 
‘‘(c) CONTENTS.—Each allocation plan of a grantee 
described in subsection (a) shall comply with the following 
requirements: 
‘‘(1) APPLICATION REQUIREMENTS FOR ELIGIBLE 
RECIPIENTS.—The allocation plan shall set forth the 
requirements for eligible recipients to apply to the 
grantee to receive assistance from Trust Fund grant 
amounts of the grantee for use for eligible activities, 
including a requirement that each such application 
include— 
‘‘(A) a description of the eligible activities 
to be conducted using such assistance; and 
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‘‘(B) a certification by the eligible recipient 
applying for such assistance that any housing 
assisted with such grant amounts will comply 
with— 
‘‘(i) all of the requirements under this 
subtitle, including the targeting require-
ments under section 296(c) and the afford-
able housing requirements under section 
297; 
‘‘(ii) section 808(d) of the Fair Hous-
ing Act (relating to the obligation to affirm-
atively further fair housing); and 
‘‘(iii) section 504 of the Rehabilitation 
Act of 1973 (relating to prohibition of dis-
crimination on the basis of disability). 
‘‘(2) SELECTION PROCESS AND CRITERIA FOR AS-
SISTANCE.— 
‘‘(A) SELECTION PROCESS.—The allocation 
plan shall set forth a process for the grantee to 
select eligible activities meeting the grantee’s pri-
ority housing needs for funding with Trust Fund 
grant amounts of the grantee, which shall com-
ply with requirements for such process as the 
Secretary shall, by regulation, establish. 
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‘‘(B) SELECTION CRITERIA.—The allocation 
plan shall set forth the factors for consideration 
in selecting among applicants that meet the ap-
plication requirements established pursuant to 
paragraph (1), which shall provide for geo-
graphic diversity among eligible activities to be 
assisted with Trust Fund grant amounts of the 
grantee and shall include— 
‘‘(i) the merits of the proposed eligible 
activity of the applicant, including the ex-
tent to which the activity addresses housing 
needs identified in the allocation plan of the 
grantee and the applicable comprehensive 
housing affordability strategy or consoli-
dated submission referred to in subsection 
(a)(3); 
‘‘(ii) the experience of the applicant, 
including its principals, in carrying out 
projects similar to the proposed eligible ac-
tivity; 
‘‘(iii) the ability of the applicant to ob-
ligate grant amounts for the proposed eligi-
ble activities and to undertake such activi-
ties in a timely manner; 
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‘‘(iv) the extent of leveraging of funds 
by the applicant from private and other 
non-Federal sources for carrying out the eli-
gible activities to be funded with Trust 
Fund grant amounts, including assistance 
made available under section 8 of the 
United States Housing Act of 1937 (42 
U.S.C. 1437f) that is devoted to the project 
that contains the affordable housing to be 
assisted with such assistance; 
‘‘(v) the extent of local assistance that 
will be provided in carrying out the eligible 
activities, including financial assistance; 
‘‘(vi) the efficiency of total project fund 
use as measured by the cost per unit of the 
proposal, as adjusted by factors which shall 
include whether the funding with Trust 
Fund grant amounts is for new construc-
tion, rehabilitation, preservation, or home-
ownership assistance, whether the project 
involves supportive housing, differences in 
construction and rehabilitation costs in dif-
ferent areas of the grantee, and other appro-
priate adjustments; 
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‘‘(vii) the degree to which the project in 
which the affordable housing will be located 
will have residents of various incomes; 
‘‘(viii) the extent of employment and 
other economic opportunities for low-income 
families in the area in which the housing 
will be located; 
‘‘(ix) the extent to which the applicant 
demonstrates the ability to maintain dwell-
ing units as affordable housing through the 
use of assistance made available under this 
subtitle, assistance leveraged from non-Fed-
eral sources, assistance made available 
under section 8 of the United States Hous-
ing Act of 1937 (42 U.S.C. 1437f), State or 
local assistance, programs to increase ten-
ant income, cross-subsidization, and any 
other resources; 
‘‘(x) the extent to which the applicant 
demonstrates that the county in which the 
housing is to be located is experiencing an 
extremely low vacancy rate; 
‘‘(xi) the extent to which the percentage 
of the housing located in such county that 
is extremely old housing exceeds 35 percent; 
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‘‘(xii) the extent to which the housing 
assisted with the grant amounts will be ac-
cessible to persons with disabilities; 
‘‘(xiii) the extent to which the appli-
cant demonstrates that the affordable hous-
ing assisted with the grant amounts will be 
located in proximity to public transpor-
tation, job opportunities, child care, and 
community revitalization projects; 
‘‘(xiv) the extent to which the appli-
cant has provided that assistance from 
grant amounts will be used for eligible ac-
tivities relating to housing located in census 
tracts in which the number of families hav-
ing incomes less than the poverty line is less 
than 20 percent; and 
‘‘(xv) the extent to which the housing 
assisted with grant amounts will comply 
with energy efficiency standards and the 
national Green Communities criteria check-
list for residential construction that pro-
vides criteria for the design, development, 
and operation of affordable housing, as the 
Secretary shall by regulation provide. 
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