(a) The departments shall establish and implement programs pursuant to the purposes of this article that focus on veterans at risk for homelessness or experiencing temporary or chronic homelessness. To the extent feasible, the departments shall establish and implement programs that, among other things, do the following: (1) Leverage public (federal, state, and local), private, and nonprofit program and fiscal resources. (2) Ensure projects combine housing and supportive services, including, but not limited to, job training, mental health and drug treatment, case management, care coordination, or physical rehabilitation. (3) Promote public and private partnerships. (4) Foster innovative financing opportunities. (5) Ensure program guidelines and terms provide threshold requirements to advance applicants with experience in combining permanent or transitional housing, or both, with supportive services for veterans, or for partnering with housing developers or service providers with experience offering housing or services to veterans. (b) (1) The departments shall ensure at least 50 percent of funds awarded for capital development under this article provide housing to veteran households with extremely low incomes. (2) Except as provided in paragraph (5) and subdivision (h), in determining whether a potential tenant is eligible for supportive, affordable, or transitional housing targeted to extremely low income households under this provision, eligibility shall take into consideration all of a householdâs income sources upon initial tenancy. (3) At least 60 percent of units funded targeting extremely low income households shall be supportive housing. (4) This section shall not deter the departments from funding projects serving mixed-income populations. (5) (A) A qualified entity tasked with making referrals to qualified units targeted to extremely low income households may submit a petition to the departments pursuant to subdivision (c) for the purposes of requesting authority to lease the qualified unit to secondary tenants if the qualified entity is unable to locate, match, or otherwise place a qualified tenant in a qualified unit within 60 days of the unit becoming available. The qualified entity may submit an application to the departments 30 days after the unit becoming available for occupancy, provided that the unit is vacant for at least 60 days at the time the departments approve the petition. The departments may not approve a petition if it would result in any changes other than tenant income eligibility criteria, as described in this section, that may impact the projectâs regulatory agreement. (B) This shall include circumstances in which approving a petition for a qualified entity to house tenants with incomes up to 60 percent of the area median income would cause a supported development to have less than 50 percent of its units occupied by tenants with extremely low incomes. The supported development shall not have less than 30 percent of its units occupied by tenants with extremely low incomes. (C) If a qualified unit that is restricted to a qualified tenant with an extremely low income is occupied by a secondary tenant or other tenant who is a veteran experiencing homelessness with an income between 30 and 60 percent of area median income pursuant to subparagraph (A) or (B), that unit shall be redesignated to an area median income level commensurate with the income level of the secondary tenant and the secondary tenant shall pay rent commensurate with their household incomeâs percentage of the area median income. (D) Beginning 12 months after the petition has been approved, if a qualified unit that is restricted to a qualified tenant with an extremely low income is occupied by a secondary tenant or other tenant who is a veteran experiencing homelessness with an income between 30 and 60 percent of area median income pursuant to subparagraph (A) or (B), the next available comparable unit shall then be rented to a
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