adult or a minor head of household if no adult is 
present in the household. 
‘‘(2) CALCULATION.—In calculating the portion 
of the amount described in paragraph (1) that is 
used for activities that are described in paragraph 
(1), the Secretary shall not count funds made avail-
able to renew contracts for existing projects under 
section 429. 
‘‘(3) ADJUSTMENT.—The 30-percent figure in 
paragraph (1) shall be reduced proportionately based 
on need under section 427(b)(2) in geographic areas 
for which subsection (e) applies in regard to sub-
section (d)(2)(A). 
‘‘(4) SUSPENSION.—The requirement estab-
lished in paragraph (1) shall be suspended for any 
year in which available funding for grants under this 
subtitle would not be sufficient to renew for 1-year 
existing grants that would otherwise be funded 
under this subtitle. 
‘‘(5) TERMINATION.—The requirement estab-
lished in paragraph (1) shall terminate upon a find-
ing by the Secretary that since the beginning of 
2001 at least 150,000 new units of permanent hous-
ing for homeless individuals and families with dis-
abilities have been funded under this subtitle. 
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‘‘(b) SET-ASIDE
FOR PERMANENT HOUSING
FOR 
HOMELESS
FAMILIES
WITH
CHILDREN.—From the 
amounts made available to carry out this subtitle for a 
fiscal year, a portion equal to not less than 10 percent 
of the sums made available to carry out subtitle B and 
this subtitle for that fiscal year shall 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 Act may be 
construed to establish a limit on the amount of funding 
that an applicant may request under this subtitle for ac-
quisition, construction, or rehabilitation activities for the 
development of permanent housing or transitional hous-
ing. 
‘‘(d) INCENTIVES FOR PROVEN STRATEGIES.— 
‘‘(1) IN GENERAL.—The Secretary shall provide 
bonuses or other incentives to geographic areas for 
using funding under this subtitle for activities that 
have been proven to be effective at reducing home-
lessness generally, reducing homelessness for a spe-
cific subpopulation, or achieving homeless prevention 
and independent living goals as set forth in section 
427(b)(1)(F). 
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‘‘(2) RULE OF CONSTRUCTION.—For purposes 
of this subsection, activities that have been proven to 
be effective at reducing homelessness generally or re-
ducing homelessness for a specific subpopulation in-
cludes— 
‘‘(A) permanent supportive housing for 
chronically homeless individuals and families; 
‘‘(B) for homeless families, rapid rehousing 
services, short-term flexible subsidies to over-
come barriers to rehousing, support services 
concentrating on improving incomes to pay 
rent, coupled with performance measures em-
phasizing rapid and permanent rehousing and 
with leveraging funding from mainstream fam-
ily service systems such as Temporary Assist-
ance for Needy Families and Child Welfare 
services; and 
‘‘(C) any other activity determined by the 
Secretary, based on research and after notice 
and comment to the public, to have been proven 
effective at reducing homelessness generally, re-
ducing homelessness for a specific subpopula-
tion, or achieving homeless prevention and inde-
pendent living goals as set forth in section 
427(b)(1)(F). 
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‘‘(3) BALANCE
OF
INCENTIVES
FOR
PROVEN 
STRATEGIES.—To the extent practicable, in pro-
viding bonuses or incentives for proven strategies, 
the Secretary shall seek to maintain a balance 
among strategies targeting homeless individuals, 
families, and other subpopulations. The Secretary 
shall not implement bonuses or incentives that spe-
cifically discourage collaborative applicants from ex-
ercising their flexibility to serve families with chil-
dren and youth defined as homeless under other 
Federal statutes. 
‘‘(e) INCENTIVES FOR SUCCESSFUL IMPLEMENTA-
TION OF PROVEN STRATEGIES.—If any geographic area 
demonstrates that it has fully implemented any of the ac-
tivities described in subsection (d) for all homeless individ-
uals and families or for all members of subpopulations for 
whom such activities are targeted, that geographic area 
shall receive the bonus or incentive provided under sub-
section (d), but may use such bonus or incentive for any 
eligible activity under either section 423 or paragraphs (4) 
and (5) of section 415(a) for homeless people generally 
or for the relevant subpopulation. 
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‘‘SEC. 429. RENEWAL FUNDING AND TERMS OF ASSISTANCE 
FOR PERMANENT HOUSING. 
‘‘(a) IN GENERAL.—Of the total amount available in 
the account or accounts designated for appropriations for 
use in connection with section 8 of the United States 
Housing Act of 1937 (42 U.S.C. 1437f), the Secretary 
shall use such sums as may be necessary for the purpose 
of renewing expiring contracts for leasing, rental assist-
ance, or operating costs for permanent housing. 
‘‘(b) RENEWALS.—The sums made available under 
subsection (a) shall be available for the renewal of con-
tracts in the case of tenant-based assistance, successive 
1-year terms, and in the case of project-based assistance, 
successive terms of up to 15 years at the discretion of the 
applicant or project sponsor and subject to the availability 
of annual appropriations, for rental assistance and hous-
ing operation costs associated with permanent housing 
projects funded under this subtitle, or under subtitle C 
or F (as in effect on the day before the effective date of 
the Homeless Emergency Assistance and Rapid Transition 
to Housing Act of 2008). The Secretary shall determine 
whether to renew a contract for such a permanent housing 
project on the basis of certification by the collaborative 
applicant for the geographic area that— 
‘‘(1) there is a demonstrated need for the 
project; and 
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