---
kind: "section"
citation: "42 U.S.C. § 11386b"
title: "42"
title_heading: "The Public Health and Welfare"
number: "11386b"
heading: "Allocation of amounts and incentives for specific eligible activities"
release: "119-102"
date: "2026-07-12"
url: "https://uscodex.org/usc/42/11386b"
units:
  - "Chapter 119 — Homeless Assistance"
  - "Subchapter IV — Housing Assistance"
  - "Part C — Continuum of Care Program"
---

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

- (a) **Minimum allocation for permanent housing for homeless individuals and families with disabilities—**
  - (1) **In general—** 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](/usc/42/11302.md?p=a) with disabilities and [homeless](/usc/42/11302.md?p=a) 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) **Calculation—** In calculating the portion of the amount described in [paragraph (1)](#a-1) that is used for activities that are described in [paragraph (1)](#a-1), the [Secretary](/usc/42/11371.md?p=7) shall not count funds made available to renew contracts for existing [projects](/usc/42/13641.md?p=2) under [section 11386c of this title](/usc/42/11386c.md).
  - (3) **Adjustment—** The 30 percent figure in [paragraph (1)](#a-1) shall be reduced proportionately based on need under [section 11386a(b)(2) of this title](/usc/42/11386a.md?p=b-2) in geographic areas for which [subsection (e)](#e) applies in regard to [subsection (d)(2)(A)](#d-2-A).
  - (4) **Suspension—** The requirement established in [paragraph (1)](#a-1) shall be suspended for any year in which funding available for grants under this part after making the [allocation](/usc/42/2021b.md?p=2) established in [paragraph (1)](#a-1) would not be sufficient to renew for 1 year all existing grants that would otherwise be fully funded under this part.
  - (5) **Termination—** The requirement established in [paragraph (1)](#a-1) shall terminate upon a finding by the [Secretary](/usc/42/11371.md?p=7) that since the beginning of 2001 at least 150,000 new units of permanent housing for [homeless individuals](/usc/42/11302.md?p=a) and families with disabilities have been funded under this part.
- (b) **Set-aside for permanent housing for homeless families with children—** 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](/usc/42/11302.md?p=a) families with children.
- (c) **Treatment of amounts for permanent or transitional housing—** 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](/usc/42/300s–3.md?p=7), or rehabilitation activities for the development of permanent housing or transitional housing.
- (d) **Incentives for proven strategies—**
  - (1) **In general—** The [Secretary](/usc/42/11371.md?p=7) 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](/usc/42/11302.md?p=a) prevention and independent living goals as set forth in [section 11386a(b)(1)(F) of this title](/usc/42/11386a.md?p=b-1-F).
  - (2) **Rule of construction—** 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](/usc/42/11302.md?p=a) and families;
    - (B) for [homeless](/usc/42/11302.md?p=a) 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](/usc/42/11371.md?p=7), 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](/usc/42/11302.md?p=a) prevention and independent living goals as set forth in [section 11386a(b)(1)(F) of this title](/usc/42/11386a.md?p=b-1-F).
  - (3) **Balance of incentives for proven strategies—** To the extent practicable, in providing bonuses or incentives for proven strategies, the [Secretary](/usc/42/11371.md?p=7) shall seek to maintain a balance among strategies targeting [homeless individuals](/usc/42/11302.md?p=a), families, and other subpopulations. The [Secretary](/usc/42/11371.md?p=7) 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](/usc/42/11302.md?p=a) under other Federal statutes.
- (e) **Incentives for successful implementation of proven strategies—** If any geographic area demonstrates that it has fully implemented any of the activities described in [subsection (d)](#d) for all [homeless individuals](/usc/42/11302.md?p=a) 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)](#d), but may use such bonus or incentive for any eligible activity under either [section 11383 of this title](/usc/42/11383.md) or paragraphs (4) and (5) of [section 11374(a) of this title](/usc/42/11374.md?p=a) for [homeless](/usc/42/11302.md?p=a) people generally or for the relevant subpopulation.

## Source credit

(Pub. L. 100–77, title IV, § 428, as added Pub. L. 111–22, div. B, title III, § 1305(3), May 20, 2009, 123 Stat. 1693.)

## Notes

### 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.