; and (ii) notwithstanding any other provision of law, may use funds it controls under section 8 or 9 for purposes of making the escrow deposit for covered families assisted under, or residing in units assisted under, section 8 or 9 of this title, respectively, provided such funds are offset by the increase in the amount of rent paid by the covered family. (B) Income limitation The Secretary shall not escrow any amounts for any covered family whose adjusted income exceeds 80 percent of the area median income. (C) Withdrawals Amounts in an escrow account established for a covered family under this paragraph may be withdrawn by the covered family after the covered family ceases to receive income assistance under Federal or State welfare programs, after 5 years from the date of the establishment of the escrow account, and under other circumstances in which the Secretary determines an exception for good cause is warranted. (4) Effect of increases in family income Any increase in the earned income of a covered family during the enrollment of the family in the pilot program established under this subsection may not be considered as income or a resource for purposes of eligibility of the family for other benefits, or amount of benefits payable to the family, under any program administered by the Secretary. (5) Application (A) In general An eligible entity seeking an award under this subsection shall submit to the Secretary an application— (i) at such time, in such manner, and containing such information as the Secretary may require; and (ii) that includes the number of proposed covered families to be served by the eligible entity under this subsection. (B) Geographic and entity variety The Secretary shall ensure that eligible entities awarded escrow allocations under this subsection— (i) are located across various regions of the United States and in both urban and rural areas