or housing instability who are sick, injured, or who have been discharged from hospitals, nursing facilities, or similar facilities. Notwithstanding any provision of title I of the Housing and Community Development Act of 1974, the construction of new affordable housing in accordance with this paragraph is specifically permitted as an eligible activity of the CDBG Plus Program. (2) Formula distribution (A) Use of existing regulations Until the regulations required under subparagraph (B) take effect, amounts made available for assistance under this title shall be allocated pursuant to the formula established under section 106 of the Housing and Community Development Act of 1974 ( 42 U.S.C. 5306 ). (B) New formula Not later than the expiration of the 12-month period beginning on the date of the enactment of this Act, the Secretary shall issue regulations that establish a formula for allocation of amounts made available for assistance under this title that utilizes factors that more directly correlate to need of grantees for such amounts to address homelessness, housing instability, and cost-burdened households. (3) Citizen participation plan In addition to citizen participation requirements under section 104(a) of such title ( 42 U.S.C. 5304(a) ), the citizenship participation process of each grantee under the CDBG Plus Program shall solicit the active participation of homeless, housing unstable, and cost-burdened households in directing the use of assistance provided under the Program. (4) Non-displacement Notwithstanding section 104(d) of such title ( 42 U.S.C. 5304(d) ), each grantee under the CDBG Plus Program shall— (A) certify that the activities funded with assistance provided under the program will not displace low- and moderate-income people