MATCHING FUNDS REQUIREMENTS.

SEC. 425. MATCHING FUNDS REQUIREMENTS. (a) Transitional Housing.— Each recipient shall be required to supplement the amount of assistance provided under paragraphs (1) and (2) of section 423(a) with an equal amount of funds from sources other than this subtitle. In calculating the amount of supplemental funds provided by a recipient under this subsection, a recipient may include the value of any donated material or building and the value of any lease on a building. (b) Permanent Housing for Handicapped Homeless Persons.— (1) Each State submitting an application for assistance for permanent housing for handicapped homeless persons shall certify that it will supplement the assistance provided under this subtitle with at least an equal amount of State or local government funds— (A) that are to be used solely for acquisition or rehabilitation; and (B) not more than 50 percent of which may be local government funds. (2) The Secretary may waive all or part of the requirement established in paragraph (1) if the State demonstrates to the satisfaction of the Secretary that— (A) the State is experiencing a severe financial hardship that makes it unable to provide an equal amount of funds; and (B) the local governments of the areas to be served by the project will contribute funds from other non-Federal sources in an aggregate amount equal to the amount of such contribution waived for the State under this paragraph.