Homeless Assistance Consolidation Act of 2006 - Amends the McKinney Vento Homeless Assistance Act to include faith-based organizations among the community-based organizations eligible to receive assistance under the Act.
Requires establishment of a continuum of care board for a geographic area for one or more units of general local government as a private nonprofit organization to lead a collaborative planning process to design, implement and evaluate programs, policies and practices to prevent and help end homelessness.
Directs the Secretary of Housing and Urban Development (HUD) to make: (1) technical assistance available to such boards and project sponsors or potential project sponsors; and (2) grants to continuum of care boards to implement homeless assistance and prevention projects.
Prohibits termination of tenancy in either permanent housing or transitional housing, except for serious or repeated violations of the lease, violation of significant program requirements, violation of federal, state, or local law, or other good cause.
Directs the Secretary to provide incentives to promote the creation of new permanent housing units for chronically homeless persons (Samaritan Chronic Homelessness Initiative) through the construction, acquisition and rehabilitation, leasing, or provision of rental assistance of permanent housing units owned or leased by a project sponsor or other independent entity contracting with a project sponsor.