; annual grants Section 406(a) of the Assets for Independence Act ( 42 U.S.C. 604 note) is amended by inserting (or, in the case of an application approved under section 405(h)(2), not later than 30 days after the date of the approval of the application) after the date of enactment of this title . 2007. Reserve fund Section 407(c) of the Assets for Independence Act ( 42 U.S.C. 604 note) is amended— (1) in paragraph (1)(D), by inserting or organizations after organization ; and (2) by striking paragraph (3) and inserting the following: (3) Limitation on uses (A) In general Of the amount provided to a qualified entity under section 406(b)— (i) not more than 5.5 percent shall be used for the purpose described in subparagraph (A) of paragraph (1); (ii) not less than 80 percent shall be used for the purpose described in subparagraph (B) of such paragraph; and (iii) not more than 14.5 percent shall be used for the purposes described in subparagraphs (C) and (D) of such paragraph. (B) Joint administration of project If 2 or more qualified entities are jointly administering a demonstration project, no such entity shall use more than its proportional share of the percentage indicated in subparagraph (A) of this paragraph for the purposes described in subparagraphs (A) through (D) of paragraph (1). . 2008. Eligibility for participation Section 408 of the Assets for Independence Act ( 42 U.S.C. 604 note) is amended— (1) in subsection (a)— (A) by striking paragraph (1) and inserting the following: (1) Income tests The household meets either of the following income tests: (A) Adjusted gross income test The adjusted gross income of the household for the last taxable year ending in or with the preceding calendar year does not exceed the greater of— (i) 200 percent of the Federal poverty line, as defined in section 673(2) of the Community Services Block Grant Act ( 42 U.S.C. 9902(2) ), including any revision required by such section, for a family composed of the number of persons in the household at the end of the taxable year