; (C) the number of overcrowded housing units; (D) the number of— (i) unsheltered homeless individuals; and (ii) chronically homeless individuals; and (E) any other factors that the Secretary considers appropriate. (3) Grants For each fiscal year for which amounts are appropriated under subsection (a) or otherwise made available under this section, and for each collaborative applicant for which an amount is allocated using the formula established under paragraph (2) of this subsection, the Secretary shall make a grant to the collaborative applicant in the amount allocated. (4) Timing (A) Formula to be devised swiftly Not later than 60 days after the date of enactment of this section, the Secretary shall establish the funding formula required under paragraph (2). (B) Initial distribution Not later than 30 days after the date on which the Secretary establishes the formula required under paragraph (2), the Secretary shall distribute amounts appropriated under subsection (a) or otherwise made available under this section for fiscal year 2020. (c) Use of grants (1) In general Subject to paragraphs (2) through (4), a collaborative applicant that receives a grant under this section may use the grant amounts only for eligible activities under section 415, 423, or 441(b). (2) Permanent supportive housing requirement (A) Requirement Except as provided in subparagraph (B), a collaborative applicant that receives a grant under this section shall use not less than 75 percent of the grant amount for permanent supportive housing, including capital costs, rental subsidies, and services. (B) Exemption (i) In general The Secretary shall exempt a collaborative applicant from the requirement under subparagraph (A) if the applicant demonstrates, in accordance with any standards and procedures established by the Secretary, that— (I) chronic homelessness has been functionally eliminated in the geographic area served by the applicant