; annual grants Section 406(a) 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 such application) after the date of enactment of this title . 7. Reserve Fund Section 407(c) is amended— (1) in paragraph (1)(D), by inserting or organizations after organization ; and (2) by amending paragraph (3) to read as follows: (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 two or more qualified entities are jointly administering a demonstration project, no one 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). . 8. Eligibility for participation Section 408 is amended— (1) in subsection (a)— (A) by amending paragraph (1) to read as follows: (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 such taxable year