; or (ii) the applicable small area fair market rent established by the Secretary; or (iii) such higher amount as the Secretary shall determine is needed to cover market rents in the area. (g) Subleases A recipient of amounts made available pursuant to subsection (b) shall not be prohibited from providing assistance authorized under subsection (b) with respect to subleases that are valid under State law. (h) Utility payment and rental arrearages In providing assistance with amounts made available pursuant to subsection (b) of this section— (1) sections 576.105(a)(5) and 576.106(a)(3) of title 24, Code of Federal Regulations, shall each be applied by substituting 12 months for 6 months ; and (2) notwithstanding section 576.106(g) of title 24, Code of Federal Regulations, where such assistance is solely with respect to rental arrears, the recipient shall not be required to provide a written lease or evidence of an oral agreement. (i) Allocation of assistance (1) In general In allocating amounts made available pursuant to subsection (b), the Secretary shall— (A) (i) for any purpose authorized in this section— (I) allocate 2 percent of such amount for Indian tribes and tribally designated housing entities under the formula established under section 302 of the Native American Housing Assistance and Self-Determination Act of 1996 ( 25 U.S.C. 4152 ), except that 0.3 percent of the amount allocated under this subclause shall be allocated for the Department of Hawaiian Home Lands; and (II) allocate 0.3 percent of such amount for the Virgin Islands, Guam, American Samoa, and the Northern Mariana Islands; and (ii) not later than 30 days after the date of enactment of this Act, obligate and disburse the amounts allocated under clause (i) in accordance with those allocations and provide the recipients with any necessary guidance for use of the funds