SEC. 2. FORMULA AND TERMS FOR ALLOCATIONS TO PRE-
VENT HOMELESSNESS FOR INDIVIDUALS LIV-
ING WITH HIV OR AIDS. 
(a) IN GENERAL.—Subsection (c) of section 854 of 
the AIDS Housing Opportunity Act (42 U.S.C. 12903(c)) 
is amended by— 
(1) redesignating paragraph (3) as paragraph 
(5); and 
(2) striking paragraphs (1) and (2) and insert-
ing the following: 
‘‘(1) ALLOCATION OF RESOURCES.— 
‘‘(A) ALLOCATION
FORMULA.—The Sec-
retary shall allocate 90 percent of the amount 
approved in appropriations Acts under section 
863 among States and metropolitan statistical 
areas as follows: 
‘‘(i) 75 percent of such amounts 
among— 
‘‘(I) cities that are the most pop-
ulous unit of general local government 
in a metropolitan statistical area with 
a population greater than 500,000, as 
determined on the basis of the most 
recent census, and with more than 
2,000 individuals living with HIV or 
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AIDS, using the data specified in sub-
paragraph (B); and 
‘‘(II) States with more than 
2,000 individuals living with HIV or 
AIDS outside of metropolitan statis-
tical areas. 
‘‘(ii) 25 percent of such amounts 
among States and metropolitan statistical 
areas based on the method described in 
subparagraph (C). 
‘‘(B) SOURCE OF DATA.—For purposes of 
allocating amounts under this paragraph for 
any fiscal year, the number of individuals living 
with HIV or AIDS shall be the number of such 
individuals as confirmed by the Director of the 
Centers for Disease Control and Prevention, as 
of December 31 of the most recent calendar 
year for which such data is available. 
‘‘(C) ALLOCATION UNDER SUBPARAGRAPH 
(A)(ii).—For purposes of allocating amounts 
under subparagraph (A)(ii), the Secretary shall 
develop a method that accounts for— 
‘‘(i) differences in housing costs 
among States and metropolitan statistical 
areas based on the fair market rental es-
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tablished pursuant to section 8(c) of the 
United States Housing Act of 1937 (42 
U.S.C. 1437f(c)) or another methodology 
established by the Secretary through regu-
lation; and 
‘‘(ii) differences in poverty rates 
among States and metropolitan statistical 
areas based on area poverty indexes or an-
other methodology established by the Sec-
retary through regulation. 
‘‘(2) MAINTAINING GRANTS.— 
‘‘(A) CONTINUED ELIGIBILITY OF FISCAL 
YEAR 2014 GRANTEES.—A grantee that received 
an allocation in fiscal year 2014 shall continue 
to be eligible for allocations under paragraph 
(1) in subsequent fiscal years, subject to— 
‘‘(i) the amounts available from ap-
propriations Acts under section 863; 
‘‘(ii) approval by the Secretary of the 
most recent comprehensive housing afford-
ability strategy for the grantee approved 
under section 105; and 
‘‘(iii) the requirements of subpara-
graph (C). 
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‘‘(B) 
ADJUSTMENTS.—Allocations 
to 
grantees described in subparagraph (A) shall be 
adjusted annually based on the administrative 
provisions included in fiscal year 2014 appro-
priations Acts. 
‘‘(C) REDETERMINATION
OF
CONTINUED 
ELIGIBILITY.—The Secretary shall redetermine 
the continued eligibility of a grantee that re-
ceived an allocation in fiscal year 2014 at least 
once during the 10-year period following fiscal 
year 2014. 
‘‘(D) ADJUSTMENT TO GRANTS.—For each 
of fiscal years 2015, 2016, and 2017, the Sec-
retary shall ensure that a grantee that received 
an allocation in the prior fiscal year does not 
receive an allocation that is 10 percent less 
than or 20 percent greater than the amount al-
located to such grantee in the preceding fiscal 
year. 
‘‘(3) ALTERNATIVE GRANTEES.— 
‘‘(A) REQUIREMENTS.—The Secretary may 
award funds reserved for a grantee eligible 
under paragraph (1) to an alternative grantee 
if— 
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‘‘(i) the grantee submits to the Sec-
retary a written agreement between the 
grantee and the alternative grantee that 
describes how the alternative grantee will 
take actions consistent with the applicable 
comprehensive housing affordability strat-
egy approved under section 105 of this 
Act; 
‘‘(ii) the Secretary approves the writ-
ten agreement described in clause (i) and 
agrees to award funds to the alternative 
grantee; and 
‘‘(iii) the written agreement does not 
exceed a term of 10 years. 
‘‘(B) RENEWAL.—An agreement approved 
pursuant to subparagraph (A) may be renewed 
by the parties with the approval of the Sec-
retary. 
‘‘(C) DEFINITION.—In this paragraph, the 
term ‘alternative grantee’ means a public hous-
ing agency (as defined in section 3(b) of the 
United States Housing Act of 1937 (42 U.S.C. 
1437a(b))), a unified funding agency (as de-
fined in section 401 of the McKinney-Vento 
Homeless Assistance Act (42 U.S.C. 11360)), a 
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State, a unit of general local government, or an 
instrumentality of State or local government. 
‘‘(4) REALLOCATIONS.—If a State or metropoli-
tan statistical area declines an allocation under 
paragraph (1)(A), or the Secretary determines, in 
accordance with criteria specified in regulation, that 
a State or metropolitan statistical area that is eligi-
ble for an allocation under paragraph (1)(A) is un-
able to properly administer such allocation, the Sec-
retary shall reallocate any funds reserved for such 
State or metropolitan statistical area as follows: 
‘‘(A) For funds reserved for a State— 
‘‘(i) to eligible metropolitan statistical 
areas within the State on a pro rata basis; 
or 
‘‘(ii) if there is no eligible metropoli-
tan statistical areas within a State, to met-
ropolitan cities and urban counties within 
the State that are eligible for grant under 
section 106 of the Housing and Commu-
nity Development Act of 1974 (42 U.S.C. 
5306), on a pro rata basis. 
‘‘(B) For funds reserved for a metropolitan 
statistical area, to the State in which the metro-
politan statistical area is located. 
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‘‘(C) If the Secretary is unable to make a 
reallocation under subparagraph (A) or (B), the 
Secretary shall make such funds available on a 
pro rata basis under the formula in paragraph 
(1)(A).’’. 
(b) AMENDMENT TO DEFINITIONS.—Section 853 of 
such Act is amended— 
(1) in paragraph (1), by inserting ‘‘or ‘AIDS’ ’’ 
before ‘‘means’’; and 
(2) by inserting at the end the following new 
paragraphs: 
‘‘(15) The term ‘HIV’ means infection with the 
human immunodeficiency virus. 
‘‘(16) The term ‘individuals living with HIV or 
AIDS’ means, with respect to the counting of cases 
in a geographic area during a period of time, the 
sum of— 
‘‘(A) the number of living non-AIDS cases 
of HIV in the area; and 
‘‘(B) the number of living cases of AIDS 
in the area.’’. 
Æ 
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