PUBLIC LAW 101-625—NOV. 28, 1990 104 STAT. 4345 will facilitate the provision of necessary supportive services to the residents of the project; "(3) OCCUPANT RENT. —Each homeless person residing in a project assisted under this section shall pay as rent an amount determined in accordance with the provisions of section 3(a) of the United States Housing Act of 1937. "(4) ALTERNATIVE USE. —A project may continue to be treated as permanent housing for homeless persons with disabilities for purposes of this subsection if the grantee determines that such project is no longer needed for use as such housing and approves the use of such project for the direct benefit of very low-income families. "(5) TENANT SELECTION.— "(A) IN GENERAL. — A project sponsor owner shall adopt written tenant selection procedures that are satisfactory to the Secretary as (i) consistent with the purpose of improving housing opportunities for very low-income persons with disabilities; and (ii) reasonably related to program eligibility and an applicant's ability to perform the obligations of the lease. Project sponsors shall promptly notify in writing any rejected applicant of the grounds for any rejection. "(B) AUTHORITY TO LIMIT OCCUPANCY.—Notwithstanding any other provision of law, a project sponsor may, with the approval of the grantee, limit occupancy within housing developed under this section to persons with disabilities who have similar disabilities and require a similar set of supportive services in a supportive housing environment. "(6) RENEWED FUNDING FOR SHORT-TERM LEASE PROJECTS. — The Secretary may not provide assistance under paragraph (4) or (5) of subsection (c) to any project not receiving assistance under paragraph (1), (2), or (3) of such subsection unless assurances have been made under paragraph (1)(A) of this subsection that the project will be operated for the purpose specified in the application for the year for which such assistance is provided. "SEC. 415. TRANSITION TO PERMANENT HOUSING. 42 USC 11375. " (a) USE OF GRANTS,— "(1) IN GENERAL. — A grant under this section may be used by a grantee to provide grants or loans to help eligible families make the transition to permanent housing. A grantee may use assistance under this section to provide for the payment by very low-income families of security deposits and the cost of rent for a reasonable period of time. "(2) TECHNICAL ASSISTANCE. — The Secretary may provide informational and technical assistance to units of general local government and housing agencies in organizing and developing assistance programs under this section. For purposes of this section, the term 'eligible family' means a very low-income family who has resided in emergency shelter or transitional housing and who meets other conditions of eligibility as the Secretary determines to be appropriate. "(3) FINANCIAL COUNSELING. —' The grantee shall provide counseling regarding household finances and budgeting to any family that receives a grant or loan under this section. "(b) LIMITATION ON FINANCIAL ASSISTANCE.— A grantee may provide assistance to eligible families in the form of a security deposit and the cost of rent for a reasonable period of time if—
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