; (2) by striking The agency or owner may establish preferences or criteria for selection for a unit assisted under this paragraph that and inserting the following: (ii) Preferences for occupancy The agency or owner shall establish a system of preferences or criteria for selection for a unit assisted under this section that— (I) shall provide that the highest preference shall be given to otherwise eligible children who are in foster care, have attained an age such that the provision of foster care for such child will end by reason of the age of the child within 6 months, meet the requirements under clauses (i) and (ii) of paragraph (1) of the definition of at risk of homelessness in section 91.5 of the Secretary’s regulations (24 C.F.R. 91.5), as in effect on September 1, 2016, and have agreed to comply with the requirements under section 39(c); (II) may provide highest preference to, in addition to eligible children described in subclause (I), not more than two other types of eligible families; and (III) except as provided under subclause (I), ; and (3) by striking Any family that and inserting the following: (iii) Waiting lists Any family that . (d) Project-Based section 8 rental assistance Subparagraph (A) of section 8(d)(1) of the United States Housing Act of 1937 ( 42 U.S.C. 1437f(d)(1)(A) ) is amended— (1) by realigning such subparagraph so as to be indented 2 ems from the left margin