section 405. (B) Modification For purposes of this paragraph, paragraph (1) of section 405(c) shall be applied without regard to the phrase through activities requiring one or more qualified expenses . (2) Approval of AFI innovation projects Not later than 12 months after the date of the enactment of this section, the Secretary shall, on a competitive basis, approve such applications to conduct AFI innovation projects as the Secretary considers to be appropriate, taking into account the considerations required by paragraph (1). The Secretary shall ensure, to the maximum extent practicable, that the applications that are approved involve a range of communities (both rural and urban) and diverse populations. (d) Project duration and grant amount (1) Duration The Secretary shall award grants under this section for a period not to exceed 5 project years. (2) Grant amount For each project year of an AFI innovation project approved under this section, the Secretary may make a grant to the qualified entity authorized to conduct the project. In making such a grant, the Secretary shall make the grant on the first day of the project year in an amount not to exceed the lesser of— (A) the aggregate amount of funds committed as matching contributions from non-Federal public or private sector sources