not later than 6 months after the date of enactment of this section. (c) Use of grants (1) In general Subject to paragraphs (2) through (4), a collaborative applicant that receives a grant under this section may use such grant amounts only for eligible activities under section 415, 423, or 441(b). (2) Permanent supportive housing requirement (A) Requirement Except as provided in subparagraph (B), each collaborative applicant that receives a grant under this section shall use not less than 75 percent of such grant amount for permanent supportive housing, including capital costs, rental subsidies, and services. (B) Exemption The Secretary shall exempt a collaborative applicant from the applicability of the requirement under subparagraph (A) if the applicant demonstrates, in accordance with such standards and procedures as the Secretary shall establish, that— (i) chronic homelessness has been functionally eliminated in the geographic area served by the applicant