; or (II) the permanent supportive housing under development in the geographic area served by the applicant will be sufficient to functionally eliminate chronic homelessness once the permanent supportive housing is available for occupancy. (ii) Timing Not later than 60 days after the Secretary receives a request for an exemption under clause (i), the Secretary shall make a determination regarding the request. (3) Limitation on use for administrative expenses Not more than 5 percent of the total amount of a grant provided under this section to a collaborative applicant may be used for costs of administration. (4) Housing First requirement The Secretary shall ensure that a collaborative applicant that receives a grant under this section is implementing, to the extent possible, and will use the grant amounts in accordance with, a Housing First model for assistance for homeless individuals. (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 that section. (e) Reporting to Congress (1) Initial report Not later than September 1, 2020, the Secretary and the United States Interagency Council on Homelessness shall submit a report that describes the design and implementation of the grant program under this section, including the formula required under subsection (b)(2), to— (A) the Committee on Banking, Housing, and Urban Affairs of the Senate; (B) the Committee on Appropriations of the Senate; (C) the Committee on Financial Services of the House of Representatives; and (D) the Committee on Appropriations of the House of Representatives. (2) Semiannual status reports (A) Reports to Congress The Secretary and the United States Interagency Council on Homelessness shall submit a semiannual report to the committees specified in paragraph (1) that describes the operation of the grant program under this section during the preceding 6 months, including— (i) identification of the grants made