ELIGIBLE ACTIVITIES.

SEC. 414. ELIGIBLE ACTIVITIES. (a) In General.— Assistance provided under this subtitle may be used for the following activities relating to emergency shelter for homeless individuals: (1) The renovation, major rehabilitation, or conversion of buildings to be used as emergency shelters. (2) The provision of essential services, including services concerned with employment, health, drug abuse, or education, if— (A) such services have not been provided by the local government during any part of the immediately preceding 12-month period; and (B) not more than 15 percent of the amount of any assistance to a local government under this subtitle is used for activities under this paragraph. (3) Maintenance, operation (other than staff), insurance, utilities, and furnishings. (b) Waiver Authority.— The Secretary may waive the 15 percent limitation on the use of assistance for essential services contained in subsection (a)(2)(B), if the local government receiving the assistance demonstrates that the other eligible activities under the program are already being carried out in the locality with other resources.