; or (ii) the permanent supportive housing under development in the geographic area served by the applicant is sufficient to functionally eliminate chronic homelessness once such units are available for occupancy. The Secretary shall consider and make a determination regarding each request for an exemption under this subparagraph not later than 60 days after receipt of such request. (3) Limitation on use for administrative expenses Not more than 5 percent of the total amount of any grant under this section to a collaborative applicant may be used for costs of administration. (4) Housing First requirement The Secretary shall ensure that each collaborative applicant that receives a grant under this section is implementing, to the extent possible, and will use such grant amounts in accordance with, a Housing First model for assistance for homeless persons. (d) Renewal funding Expiring contracts for leasing, rental assistance, or permanent housing shall be treated, for purposes of section 429, as expiring contracts referred to in subsection (a) of such section. (e) Reporting to Congress (1) Initial report Not later than September 1, 2017, the Secretary and the United States Interagency Council on Homelessness shall submit a report to the Committees on Financial Services and Appropriations of the House of Representatives and the Committees on Banking, Housing, and Urban Affairs and Appropriations of the Senate describing the design and implementation of the grant program under this section, which shall include the formula required by subsection (b)(2). (2) Semiannual status reports (A) Reports to congress The Secretary and the United States Interagency Council on Homelessness shall submit reports to the Committees specified in paragraph (1) semiannually describing the operation of the grant program under this section during the preceding 6 months, including identification of the grants made and a description of the activities funded with grant amounts. (B) Collection of information by Secretary The Secretary shall