Title 42The Public Health and WelfareRelease 119-73

§11386b Allocation of amounts and incentives for specific eligible activities

Title 42 › Chapter CHAPTER 119— - HOMELESS ASSISTANCE › Subchapter SUBCHAPTER IV— - HOUSING ASSISTANCE › Part Part C— - Continuum of Care Program › § 11386b

Last updated Apr 6, 2026|Official source

Summary

Requires that at least 30% of the money for this program each year be used to create permanent housing for homeless people with disabilities and for homeless families that include such a person (including when a minor is the head of household and no adult is present). The Secretary will not count funds used to renew existing project contracts when checking that 30% requirement. That 30% can be cut back for certain areas based on need under section 11386a(b)(2). The 30% rule is paused for any year when following it would leave too little money to renew all existing grants for one year. The rule ends once the Secretary finds that 150,000 new permanent housing units for homeless people and disabled families have been funded since the start of 2001. At least 10% of the program money each year must go to permanent housing for homeless families with children. Applicants may request any amount for buying, building, or rehabbing housing. The Secretary will offer bonuses or incentives to areas that use proven strategies to reduce homelessness, such as permanent supportive housing for the chronically homeless, rapid rehousing and short-term subsidies for families, or other approaches shown by research and public comment. Bonuses should be balanced across different groups and must not discourage serving families or youth. If an area fully implements a proven strategy for all people it targets, it gets the bonus and may spend it on any eligible homeless program activities.

Full Legal Text

Title 42, §11386b

The Public Health and Welfare — Source: USLM XML via OLRC

(a)(1)From the amounts made available to carry out this part for a fiscal year, a portion equal to not less than 30 percent of the sums made available to carry out part B and this part, shall be used for permanent housing for homeless individuals with disabilities and homeless families that include such an individual who is an adult or a minor head of household if no adult is present in the household.
(2)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 available to renew contracts for existing projects under section 11386c of this title.
(3)The 30 percent figure in paragraph (1) shall be reduced proportionately based on need under section 11386a(b)(2) of this title in geographic areas for which subsection (e) applies in regard to subsection (d)(2)(A).
(4)The requirement established in paragraph (1) shall be suspended for any year in which funding available for grants under this part after making the allocation established in paragraph (1) would not be sufficient to renew for 1 year all existing grants that would otherwise be fully funded under this part.
(5)The requirement established in paragraph (1) shall terminate upon a finding by the Secretary that since the beginning of 2001 at least 150,000 new units of permanent housing for homeless individuals and families with disabilities have been funded under this part.
(b)From the amounts made available to carry out this part for a fiscal year, a portion equal to not less than 10 percent of the sums made available to carry out part B and this part for that fiscal year shall be used to provide or secure permanent housing for homeless families with children.
(c)Nothing in this chapter may be construed to establish a limit on the amount of funding that an applicant may request under this part for acquisition, construction, or rehabilitation activities for the development of permanent housing or transitional housing.
(d)(1)The Secretary shall provide bonuses or other incentives to geographic areas for using funding under this part for activities that have been proven to be effective at reducing homelessness generally, reducing homelessness for a specific subpopulation, or achieving homeless prevention and independent living goals as set forth in section 11386a(b)(1)(F) of this title.
(2)For purposes of this subsection, activities that have been proven to be effective at reducing homelessness generally or reducing homelessness for a specific subpopulation includes—
(A)permanent supportive housing for chronically homeless individuals and families;
(B)for homeless families, rapid rehousing services, short-term flexible subsidies to overcome barriers to rehousing, support services concentrating on improving incomes to pay rent, coupled with performance measures emphasizing rapid and permanent rehousing and with leveraging funding from mainstream family service systems such as Temporary Assistance 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, reducing homelessness for a specific subpopulation, or achieving homeless prevention and independent living goals as set forth in section 11386a(b)(1)(F) of this title.
(3)To the extent practicable, in providing 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 specifically discourage collaborative applicants from exercising their flexibility to serve families with children and youth defined as homeless under other Federal statutes.
(e)If any geographic area demonstrates that it has fully implemented any of the activities described in subsection (d) for all homeless individuals 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 subsection (d), but may use such bonus or incentive for any eligible activity under either section 11383 of this title or paragraphs (4) and (5) of section 11374(a) of this title for homeless people generally or for the relevant subpopulation.

Legislative History

Notes & Related Subsidiaries

Editorial Notes

References in Text

This chapter, referred to in subsec. (c), was in the original “this Act”, meaning Pub. L. 100–77, July 22, 1987, 101 Stat. 482, known as the McKinney-Vento Homeless Assistance Act. For complete classification of this Act to the Code, see

Short Title

note set out under section 11301 of this title and Tables.

Prior Provisions

A prior section 428 of Pub. L. 100–77 was renumbered section 434 and is classified to section 11388 of this title. Another prior section 428 of Pub. L. 100–77, July 22, 1987, 101 Stat. 504; Pub. L. 100–628, title IV, §§ 454, 455, Nov. 7, 1988, 102 Stat. 3236; Pub. L. 101–625, title VIII, § 833(a), Nov. 28, 1990, 104 Stat. 4362, which authorized appropriations for the supportive housing demonstration program, was classified to section 11388 of this title prior to repeal by Pub. L. 102–550, title XIV, § 1403(a), Oct. 28, 1992, 106 Stat. 4013.

Statutory Notes and Related Subsidiaries

Effective Date

Section effective on the earlier of 18 months after May 20, 2009, or 3 months after publication of certain final

Regulations

by Secretary of Housing and Urban Development, see section 1503 of Pub. L. 111–22, set out as an

Effective Date

of 2009 Amendment note under section 11302 of this title.

Reference

Citations & Metadata

Citation

42 U.S.C. § 11386b

Title 42The Public Health and Welfare

Last Updated

Apr 6, 2026

Release point: 119-73