Assistance provided under this part may be used for the following activities relating to emergency shelter for homeless individuals:
(4)
Efforts to prevent homelessness, such as financial assistance to families who have received eviction notices or notices of termination of utility services if—
(A)
the inability of the family to make the required payments is due to a sudden reduction in income;
(B)
the assistance is necessary to avoid the eviction or termination of services;
(C)
there is a reasonable prospect that the family will be able to resume payments within a reasonable period of time; and
(D)
the assistance will not supplant funding for preexisting homelessness prevention activities from other sources.
Activities that are eligible for assistance under this paragraph shall include assistance to very low-income families who are discharged from publicly funded institutions or systems of care (such as health care facilities, foster care or other youth facilities, or correction programs and institutions). Not more than 30 percent of the aggregate amount of all assistance to a State or local government under this part may be used for activities under this paragraph.