Title 42 › CHAPTER 119 — HOMELESS ASSISTANCE › SUBCHAPTER IV — HOUSING ASSISTANCE › Part C — Continuum of Care Program › § 11386b
At least 30% of the money available each year to carry out part B and this part must be used to fund 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). When counting that 30%, the Secretary must not include funds used to renew existing project contracts under section 11386c. The 30% can be reduced proportionally in areas where need is adjusted under section 11386a(b)(2) if subsection (e) applies to subsection (d)(2)(A). The 30% rule is paused for any year when, after making that allocation, there would not be enough left to renew for one year all existing grants that would otherwise be fully funded. The 30% requirement ends when the Secretary finds that at least 150,000 new units of permanent housing for homeless people with disabilities have been funded under this part since the start of 2001. At least 10% of those same funds each year must be used for permanent housing for homeless families with children. There is no legal cap on how much an applicant can ask for to buy, build, or rehab permanent or transitional housing. The Secretary must give bonuses or other incentives to areas that use funds on activities proven to reduce homelessness or help people live independently. Examples of proven strategies include permanent supportive housing for the chronically homeless and, for families, rapid rehousing, short-term flexible subsidies, income-focused support services, performance measures stressing quick permanent rehousing, and using mainstream family systems like TANF and Child Welfare. The Secretary may designate other proven activities after research and public notice. Bonuses should, where possible, be balanced across individuals, families, and other groups, and must not discourage collaborative applicants from serving families with children and youth defined as homeless under other federal laws. If an area fully implements a proven strategy for all its targeted people, it gets the bonus and may use it on any eligible activity under section 11383 or paragraphs (4) and (5) of section 11374(a) for homeless people generally or for that subpopulation.
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The Public Health and Welfare, Source: USLM XML via OLRC
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42 U.S.C. § 11386b
Title 42, The Public Health and Welfare
Last Updated
Sep 22, 2026
Release point: 119-110