Section 1. Short title

This Act may be cited as the Incentivizing Local Solutions to Homelessness Act.

Sec. 2. Incentivizing local solutions to homelessness

Section 414 of the McKinney-Vento Homeless Assistance Act (42 U.S.C. 11373) is amended by adding at the end the following:

(f) Funding cap waiver authority

(1) In general

Notwithstanding any other provision of law or regulation, a recipient may request a waiver to the expenditure limit established pursuant to section 415(b) for amounts provided for each of fiscal years 2027 through 2030.

(2) Waiver request

(A) In general

A recipient seeking a waiver described in paragraph (1) shall submit to the Secretary a waiver request that includes not more than the following:

(i)

A demonstration of local needs and circumstances that necessitate a waiver.

(ii)

A detailed plan for how the recipient intends to use funds.

(iii)

A justification for how the proposed use of funds supports the most recent Consolidated Plan submitted by the recipient.

(iv)

Any public input solicited under subparagraph (B)(ii).

(B) Notification

Each recipient shall—

(i)

notify all subrecipients and local Continuums of Care that serve the recipient's geographic area of the availability of waivers under this subsection; and

(ii)

prior to the submission of a waiver request under subparagraph (A), solicit public input regarding the potential need for and proposed uses of such waiver.

(C) Approval; publication

The Secretary shall—

(i)

make all waiver requests submitted under subparagraph (A) publicly available on the website of the Department of Housing and Urban Development;

(ii)

not later than 60 days after the date on which the Secretary receives a waiver request under subparagraph (A), approve or deny the request; and

(iii)

deny any waiver request submitted under subparagraph (A) by a recipient that relocates or threaten to relocate individuals or their property without providing emergency shelter, rapid rehousing, transitional housing, permanent supportive housing, or other permanent housing options.

(3) Revocation

(A) In general

A waiver approved under this subsection shall remain in effect for the duration of the period of performance of fiscal year 2027 through 2030 grants, unless the recipient notifies the Secretary in writing that the recipient wishes to revoke the waiver.

(B) Notification

If a recipient intends to revoke a waiver under subparagraph (A), the recipient shall—

(i)

solicit input from subrecipients regarding the revocation before submitting the revocation; and

(ii)

provide subrecipients with a summary of the input and the justification for the revocation in its submittal prior to notifying the Secretary in writing.

(C) Publication

The Secretary shall publish any revocation of a waiver under subparagraph (A) and the justification of the recipient for the waiver on the website of the Department of Housing and Urban Development.