[House Report 110-369]
[From the U.S. Government Publishing Office]
110th Congress Report
HOUSE OF REPRESENTATIVES
1st Session 110-369
======================================================================
PROVIDING FOR CONSIDERATION OF THE BILL (H.R. 2895) TO ESTABLISH THE
NATIONAL AFFORDABLE HOUSING TRUST FUND IN THE TREASURY OF THE UNITED
STATES TO PROVIDE FOR THE CONSTRUCTION, REHABILITATION, AND
PRESERVATION OF DECENT, SAFE, AND AFFORDABLE HOUSING FOR LOW-INCOME
FAMILIES
_______
October 9, 2007.--Referred to the House Calendar and ordered to be
printed
_______
Ms. Castor, from the Committee on Rules, submitted the following
R E P O R T
[To accompany H. Res. 720]
The Committee on Rules, having had under consideration
House Resolution 720, by a record vote of 9 to 3, report the
same to the House with the recommendation that the resolution
be adopted.
SUMMARY OF PROVISIONS OF THE RESOLUTION
The resolution provides for consideration of H.R. 2895, the
National Affordable Housing Trust Fund Act of 2007, under a
structured rule. The rule provides one hour of general debate
equally divided and controlled by the chairman and ranking
minority member of the Committee on Financial Services. The
rule waives all points of order against consideration of the
bill except clauses 9 and 10 of rule XXI. The rule provides
that the amendment in the nature of a substitute recommended by
the Committee on Financial Services now printed in the bill
shall be considered as an original bill for the purpose of
amendment and shall be considered as read. The rule waives all
points of order against the amendment in the nature of a
substitute except for clause 10 of rule XXI. This waiver does
not affect the point of order available under clause 9 of rule
XXI (regarding earmark disclosure).
The rule makes in order only those amendments printed in
this report. The amendments made in order may be offered only
in the order printed in this report, may be offered only by a
Member designated in this report, shall be considered as read,
shall be debatable for the time specified in this report
equally divided and controlled by the proponent and an
opponent, shall not be subject to amendment, and shall not be
subject to a demand for a division of the question in the House
or in the Committee of the Whole. All points of order against
the amendments except for clauses 9 and 10 of rule XXI are
waived. The rule provides one motion to recommit with or
without instructions. The rule provides that, notwithstanding
the operation of the previous question, the Chair may postpone
further consideration of the bill to a time designated by the
Speaker.
EXPLANATION OF WAIVERS
The waiver of all points of order against consideration of
the bill (except for clauses 9 and 10 of rule XXI) includes a
waiver of clause 4 of rule XXI (prohibiting appropriations in
legislative bills). The rule waives all points of order against
the committee amendment in the nature of a substitute (except
for clause 10 of rule XXI). The committee is not aware of any
points of order against the substitute. The waiver is
prophylactic in nature.
COMMITTEE VOTES
The results of each record vote on an amendment or motion
to report, together with the names of those voting for and
against, are printed below:
Rules Committee record vote No. 336
Date: October 9, 2007.
Measure: H.R. 2895.
Motion by: Mr. Dreier.
Summary of motion: To grant an open rule.
Results: Defeated 3-9.
Vote by Members: McGovern--Nay; Hastings (FL)--Nay;
Matsui--Nay; Cardoza--Nay; Welch--Nay; Castor--Nay; Arcuri--
Nay; Sutton--Nay; Dreier--Yea; Hastings (WA)--Yea; Sessions--
Yea; Slaughter--Nay.
Rules Committee record vote No. 337
Date: October 9, 2007.
Measure: H.R. 2895.
Motion by: Mr. Dreier.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. King (IA), which would remove
Davis-Bacon requirements on grant amounts or contracts relating
to the Trust Fund grant amounts.
Results: Defeated 3-9.
Vote by Members: McGovern--Nay; Hastings (FL)--Nay;
Matsui--Nay; Cardoza--Nay; Welch--Nay; Castor--Nay; Arcuri--
Nay; Sutton--Nay; Dreier--Yea; Hastings (WA)--Yea; Sessions--
Yea; Slaughter--Nay.
Rules Committee record vote No. 338
Date: October 9, 2007.
Measure: H.R. 2895.
Motion by: Mr. Hastings (WA).
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Bilirakis (FL), #6, which
would modify the current provision in the bill that requires
the formula share of a local jurisdiction to go to the state
where it is located if the local jurisdiction's formula share
does not meet the minimum threshold of $750,000. The amendment
would lower the minimum threshold to $250,000.
Results: Defeated 3-9.
Vote by Members: McGovern--Nay; Hastings (FL)--Nay;
Matsui--Nay; Cardoza--Nay; Welch--Nay; Castor--Nay; Arcuri--
Nay; Sutton--Nay; Dreier--Yea; Hastings (WA)--Yea; Sessions--
Yea; Slaughter--Nay.
Rules Committee record vote No. 339
Date: October 9, 2007.
Measure: H.R. 2895.
Motion by: Mr. Hastings (WA).
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Hensarling (TX), #10, which
would prevent additional government funds from being diverted
to the Housing Trust Fund beyond revenue from the GSE and FHA
programs and future discretionary appropriations.
Results: Defeated 3-9.
Vote by Members: McGovern--Nay; Hastings (FL)--Nay;
Matsui--Nay; Cardoza--Nay; Welch--Nay; Castor--Nay; Arcuri--
Nay; Sutton--Nay; Dreier--Yea; Hastings (WA)--Yea; Sessions--
Yea; Slaughter--Nay.
Rules Committee record vote No. 340
Date: October 9, 2007.
Measure: H.R. 2895.
Motion by: Mr. Hastings (WA).
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Price, Tom (GA), #2, which
would sunset the fund after 10 years.
Results: Defeated 3-9.
Vote by Members: McGovern--Nay; Hastings (FL)--Nay;
Matsui--Nay; Cardoza--Nay; Welch--Nay; Castor--Nay; Arcuri--
Nay; Sutton--Nay; Dreier--Yea; Hastings (WA)--Yea; Sessions--
Yea; Slaughter--Nay.
Rules Committee record vote No. 341
Date: October 9, 2007.
Measure: H.R. 2895.
Motion by: Mr. Sessions.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Price, Tom (GA), #3, which
would require that any new spending be accompanied by
offsetting decreases in spending.
Results: Defeated 3-9.
Vote by Members: McGovern--Nay; Hastings (FL)--Nay;
Matsui--Nay; Cardoza--Nay; Welch--Nay; Castor--Nay; Arcuri--
Nay; Sutton--Nay; Dreier--Yea; Hastings (WA)--Yea; Sessions--
Yea; Slaughter--Nay.
Rules Committee record vote No. 342
Date: October 9, 2007.
Measure: H.R. 2895.
Motion by: Mr. Sessions.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Price, Tom (GA), #4, which
would require that any individual or household receiving Trust
Fund grant money must present verification of legal residency
by a secure identification document.
Results: Defeated 3-9.
Vote by Members: McGovern--Nay; Hastings (FL)--Nay;
Matsui--Nay; Cardoza--Nay; Welch--Nay; Castor--Nay; Arcuri--
Nay; Sutton--Nay; Dreier--Yea; Hastings (WA)--Yea; Sessions--
Yea; Slaughter--Nay.
Rules Committee record vote No. 343
Date: October 9, 2007.
Measure: H.R. 2895.
Motion by: Mr. Sessions.
Summary of motion: To make in order and provide appropriate
waivers for an amendment by Rep. Doolittle (CA), #7, which
would prohibit any assistance provided with any Trust Fund
grant amounts from being made available to, or on behalf of,
any individual or household unless all adult members of the
household have a valid Social Security Number.
Results: Defeated 3-9.
Vote by Members: McGovern--Nay; Hastings (FL)--Nay;
Matsui--Nay; Cardoza--Nay; Welch--Nay; Castor--Nay; Arcuri--
Nay; Sutton--Nay; Dreier--Yea; Hastings (WA)--Yea; Sessions--
Yea; Slaughter--Nay.
Rules Committee record vote No. 344
Date: October 9, 2007.
Measure: H.R. 2895.
Motion by: Mr. Hastings (FL).
Summary of motion: To report the rule.
Results: Adopted 9-3.
Vote by Members: McGovern--Yea; Hastings (FL)--Yea;
Matsui--Yea; Cardoza--Yea; Welch--Yea; Castor--Yea; Arcuri--
Yea; Sutton--Yea; Dreier--Nay; Hastings (WA)--Nay; Sessions--
Nay; Slaughter--Yea.
SUMMARY OF AMENDMENTS MADE IN ORDER
(Summaries derived from information provided by sponsors.)
1. Frank (MA): This amendment would establish a state
minimum allocation percentage, under which every state will
receive at least one half of one percent (.5%) of the total
funds available each year that are allocated to states, Indian
Tribes, and insular areas. Allocations to all other states
would be reduced pro rata to bring these states up to this .5%
minimum. The amendment would also provide that the local
jurisdiction in each state that is slated to receive the
largest amount by formula in such state would be entitled to
receive such funds directly [notwithstanding the bill's
provision that jurisdictions entitled to their state in any
year that nationwide funding is less than $2 billion]. The
amendment includes a technical clarification to ensure that the
mixed income limitation capping the number of units initially
rented to extremely low income families at 50% applies to all
of the units in a project [not just those units assisted by
trust fund dollars]. The amendment would provide that the
exception to the mixed income rule applies to all ``elderly
only'' projects, not just those projects of 25 or fewer units.
Finally, the amendment would provide that nothing in the bill
allows any payments under the bill for any individual or head
of household that is not a legal resident. (10 minutes)
2. Frank (MA): This amendment would add additional
flexibility to permitted fund uses, by allowing a grantee to
use up to 10% of their funds for project operating accounts to
cover shortfalls for projects assisted with trust fund dollars,
to facilitate affordability for families below the SSI income
limit. (10 minutes)
3. Hastings (FL): This amendment would amend the Affordable
Housing Trust Fund homeownership counseling criteria to include
flood or other disaster specific insurance in applicable
regions. (10 minutes)
4. Inslee (WA): This amendment would include among the
factors for consideration in selecting applicants to receive
Trust Fund grant amounts, a consideration of the extent to
which the design, construction, and operation of the housing
reduces utility costs for residents. (10 minutes)
5. Woolsey (CA): This amendment would allow grantees to
give preference to public employees, including first responders
and teachers, who cannot afford to live in high-cost areas.
These workers would have to meet the income eligibility
requirements stated in the text of H.R. 2895. (10 minutes)
6. Langevin (RI): This amendment would direct the Secretary
of Housing and Urban Development to establish an internet-based
``Green Housing Clearinghouse'' including best practices,
technical recommendations and other informational material
regarding green building techniques. Additionally, grantees
would be required to self-certify how many of the total units
they built with money from the national affordable housing
trust fund were green. (10 minutes)
7. Van Hollen (MD): This amendment would provide that, for
the purpose of increasing accountability, previous grant
recipients applying for new grants must include in their
applications progress reports for projects for which they used
funds in the previous fiscal year. (10 minutes)
8. Neugebauer (TX): Amendment in the Nature of a
Substitute. This substitute amendment would establish a
National Affordable Housing Grant Fund program within the HOME
program, which is currently administered through the U.S.
Department of Housing and Urban Development. (20 minutes)
TEXT OF AMENDMENTS MADE IN ORDER UNDER THE RULE
1. An Amendment To Be Offered by Representative Frank of Massachusetts,
or His Designee, Debatable for 10 Minutes
Page 14, strike lines 14 through 16, and insert the
following:
``(1) States.--Subject to subsection (d), the
allocation for a State shall be as follows:
``(A) Minimum amount.--If the formula amount
determined under subsection (b)(2) for the
State for the fiscal year is less than 0.5
percent of the total amount allocated for such
fiscal year under section 293(b)(1), the
allocation for the State shall be 0.5 percent
of the total amount allocated for such fiscal
year under section 293(b)(1).
``(B) Formula amount.--If the formula amount
determined under subsection (b)(2) for the
State for the fiscal year is 0.5 percent or
more of the total amount allocated for such
fiscal year under section 293(b)(1), the
allocation for the State shall be the formula
amount for the State, except that--
``(i) the Secretary shall reduce such
formula amounts for all States whose
allocations are determined under this
subparagraph on a pro rata basis,
except as provided in clause (ii), by
the amount necessary to account for any
increases from the formula amount for
allocations made under subparagraph
(A), so that the total of the
allocations for all States pursuant to
this paragraph is equal to the
aggregate of the formula amounts under
subsection (b)(2) for all States; and
``(ii) no reduction pursuant to
clause (i) for any State may reduce the
formula amount for the State to less
than 0.5 percent of such total amount
allocated for such fiscal year.''.
Page 15, strike lines 8 through 10, and insert the following:
``(1) for each participating local jurisdiction
having a formula amount for such fiscal year of less
than $750,000, the allocation shall be $0, except that
the allocation for such a jurisdiction for such fiscal
year shall be the formula amount for the jurisdiction
for such fiscal year if--
``(A) the Secretary''
Page 15, strike the comma in line 20 and all that follows
through line 22, and insert ``; or''.
Page 15, after line 22, insert the following:
``(B) the formula amount for such
jurisdiction for such fiscal year is an amount
that is greater than the formula amount for
such fiscal year for any other participating
local jurisdiction that is located in the same
State; and''.
Page 42, strike lines 21 through 25, and insert the
following:
``(A) In general.--The dwelling unit is
located in a project (i) that receives
assistance under this subtitle, and (ii) for
which not more than 50 percent of the rental
units in the project that are not previously
occupied may be rented initially only to''.
Strike line 15 on page 43 and all that follows through page
44, line 3, and insert the following:
``(B) Exceptions.--Subparagraph (A) shall not
apply in the case of a project that--
``(i) has 25 or fewer dwelling units
and that is--
``(I) located in a census
tract in which the number of
families having incomes less
than the poverty line is less
than 20 percent;
``(II) located in a rural
area, as such term is defined
in section 520 of the Housing
Act of 1949 (42 U.S.C. 1490);
or
``(III) specifically made
available only for households
comprised of disabled families;
or
``(ii) is specifically made available
only for households comprised of
elderly families.''.
Page 51, line 5, after ``that'' insert ``describes''.
Page 51, line 6, strike ``describes''.
At the end of the bill, insert the following new section:
``SEC. 299C. BENEFITS.
``Nothing in this subtitle allows any payments under this
subtitle for any individual or head of household that is not a
legal resident.''
----------
2. An Amendment To Be Offered by Representative Frank of Massachusetts,
or His Designee, Debatable for 10 Minutes
Page 53, after line 20, insert the following:
``(F) use of funds to facilitate
affordability for families having incomes
described in section 296(c)(3), in a combined
amount for a grantee in any fiscal year not to
exceed 10 percent of the aggregate Trust Fund
grant amounts provided to the grantee for such
fiscal year, for project operating accounts
used to cover net operating income shortfalls
for dwelling units assisted with Trust Fund
grant amounts;''.
Page 53, line 21, strike ``(F)'' and insert ``(G)''.
Page 54, line 4, strike ``(G)'' and insert ``(H)''.
----------
3. An Amendment To Be Offered by Representative Hastings of Florida, or
His Designee, Debatable for 10 Minutes
Page 45, line 20, before the semicolon insert the following:
``and includes counseling regarding financial literacy,
strategies to save money, qualifying for a mortgage loan,
methods to avoid predatory lenders and foreclosure, and, where
appropriate by region, any requirements and costs associated
with obtaining flood or other disaster-specific insurance
coverage''.
----------
4. An Amendment To Be Offered by Representative Inslee of Washington,
or His Designee, Debatable for 10 Minutes
Page 29, line 16, strike ``and''.
Page 29, line 24, strike the period and insert ``; and''.
Page 29, after line 24, insert the following:
``(xvi) the extent to which the
design, construction, and operation of
the housing assisted with grant amounts
reduces utility costs for residents and
thereby reduces their total housing
cost.''.
----------
5. An Amendment To Be Offered by Representative Woolsey of California,
or Her Designee, Debatable for 10 Minutes
Page 30, after line 4, insert the following:
``(3) Use for first responders and teachers.--To the
extent that Trust Fund grant amounts of a grantee are
made available for eligible activities involving one-
to four-family owner-occupied housing, the grantee may
give preference in the use of such grant amounts to
eligible activities relating to affordable housing for
first responders, public safety officers, teachers, and
other public employees who have family incomes such
that such use of the grant amounts complies with the
requirements under section 296(c).''.
Page 30, line 5, strike ``(3)'' and insert ``(4)''.
----------
6. An Amendment To Be Offered by Representative Langevin of Rhode
Island, or His Designee, Debatable for 10 Minutes
Page 52, after line 15, insert the following:
``(c) Green Housing Clearinghouse.--
``(1) Establishment.--The Secretary shall establish a
clearinghouse of information relating to green building
techniques to provide grantees and recipients of Trust
Fund amounts information regarding use of Trust Fund
grant amounts in a manner that increases the efficiency
of buildings and their use of energy, water, and
materials, and reducing building impacts on human
health and the environment, through better siting,
design, construction, operation, maintenance, and
removal, including information regarding best practices
and technical recommendations.
``(2) Access through internet.--The Secretary shall
make the information of the clearinghouse available by
means of the Internet.''.
Page 51, line 9, strike ``and''.
Page 51, line 14, strike the period and insert ``; and''.
Page 51, after line 14, insert the following:
``(III) certifies the number
of total dwelling units of
affordable housing that were
constructed, preserved, or
rehabilitated during such
fiscal year with assistance
from Trust Funds grant amounts
of the grantee comply with
widely accepted standards for
green building.''.
----------
7. An Amendment To Be Offered by Representative Van Hollen of Maryland,
or His Designee, Debatable for 10 Minutes
Page 24, line 24, strike ``and''.
Page 25, line 15, strike the period and insert ``; and''.
Page 25, after line 15, insert the following:
``(C) in the case of any recipient who has
received assistance from Trust Fund grant
amounts in any previous fiscal year, a report
on the progress made in carrying out the
eligible activities funded with such previous
assistance.''.
----------
8. An Amendment To Be Offered by Representative Neugebauer of Texas, or
His Designee, Debatable for 20 Minutes
Strike all after the enacting clause and insert the
following:
SEC. 1. SHORT TITLE.
This Act may be cited as the ``National Affordable Housing
Grant Act of 2007''.
SEC. 2. NATIONAL AFFORDABLE HOUSING GRANTS.
(a) In General.--
Title II of the Cranston-Gonzalez National Affordable
Housing Act (42 U.S.C. 12721 et seq.) is amended by
adding at the end the following new subtitle:
``Subtitle G--National Affordable Housing Grant Program
``SEC. 291. PURPOSES.
``The purposes of this subtitle are--
``(1) to address the national shortage of housing
that is affordable to low-income families by making
grants to finance additional housing activities,
without supplanting existing housing appropriations;
``(2) to enable rental housing to be built, for
families with the greatest economic need, in mixed-
income settings and in areas with the greatest economic
opportunities;
``(3) to promote ownership of one-to-four family
owner-occupied housing by low-income families; and
``(4) to construct, rehabilitate, and preserve at
least 750,000 affordable dwelling units over the next
decade.
``SEC. 292. GRANT AUTHORITY.
``(a) In General.--To the extent that amounts are made
available to carry out this subtitle, the Secretary of Housing
and Urban Development may make grants to participating
jurisdictions in accordance with this subtitle.
``(b) Federal Assistance.--All assistance provided under this
subtitle shall be considered to be Federal financial
assistance.
``(c) Authorization of Appropriations.--There are authorized
to be appropriated for grants under this title such sums as may
be necessary for each of fiscal years 2008 through 2012.
``SEC. 293. ALLOCATIONS FOR STATES, INDIAN TRIBES, INSULAR AREAS, AND
PARTICIPATING LOCAL JURISDICTIONS.
``For fiscal year 2008 and for each fiscal year thereafter,
of the total amount available for assistance under this
subtitle, the Secretary shall allocate for use under section
294--
``(1) 40 percent for States, Indian tribes, and
insular areas; and
``(2) 60 percent for participating local
jurisdictions.
``SEC. 294. GRANT ASSISTANCE.
``(a) Affordable Housing Needs Formula.--
``(1) Establishment and factors.--The Secretary shall
establish a formula to allocate amounts made available
for a fiscal year for assistance under this subtitle
among States, all Indian tribes, insular areas, and
participating local jurisdictions based on the relative
needs of such entities, for funds to increase the
supply of decent quality affordable housing. The
formula shall be based upon a comparison of the
following factors with respect to each State, Indian
tribes, each insular area, and each participating local
jurisdiction:
``(A) The ratio of the population of the
State, Indian tribes, insular area, or
participating local jurisdiction, to the
aggregate population of all States, Indian
tribes, insular areas, and participating local
jurisdictions..
``(B) The percentage of families in the
jurisdiction of the State, of Indian tribes, or
of the insular area or participating local
jurisdiction that live in substandard housing.
``(C) The percentage of families in the
jurisdiction of the State, of Indian tribes, or
of the insular area or that pay more than 50
percent of their annual income for housing
costs.
``(D) The percentage of persons in the
jurisdiction of the State, of Indian tribes, or
of the insular area or participating local
jurisdiction having an income at or below the
poverty line.
``(E) The cost of constructing or carrying
out rehabilitation of housing in the
jurisdiction of the State, of Indian tribes, or
of the insular area or participating local
jurisdiction.
``(F) The percentage of the population of the
State, of Indian tribes, or of the insular area
or participating local jurisdiction that
resides in counties having extremely low
vacancy rates.
``(G) The percentage of housing stock in the
jurisdiction of the State, of Indian tribes, or
of the insular area or participating local
jurisdiction that is extremely old housing.
``(H) Any other factors that the Secretary
determines to be appropriate.
``(2) Failure to establish.--Until such time as the
Secretary publishes a notice in the Federal Register
implementing regulations establishing the formula
required under paragraph (1) of this subsection, for
the purpose of allocating assistance under this
subtitle--
``(A) section 293, paragraphs (2) and (3) of
subsection (b) of this section, and subsection
(c) of this section shall not apply;
``(B) the allocation for Indian tribes shall
be such amount as the Secretary shall
establish; and
``(C) the formula amount for each State,
insular area, or participating local
jurisdiction shall be determined by applying,
for such State, insular area, or participating
local jurisdiction, the percentage that is
equal to the percentage of the total amounts
made available for such fiscal year for
allocation under subtitle A of this title (42
U.S.C. 12741 et seq.) that are allocated in
such year, pursuant to such subtitle, to such
State, insular area, or participating local
jurisdiction, respectively, and the allocation
for each State, insular area, or participating
local jurisdiction, for purposes of subsection
(d) shall be the formula amount for the State,
insular area, or participating local
jurisdiction, respectively.
``(b) Formula Amount.--
``(1) In general.--For each fiscal year referred to
in section 293, the Secretary shall determine the
formula amount under this subsection for each State,
for Indian tribes, for each insular area, and for each
participating local jurisdiction.
``(2) States, indian tribes, and insular areas.--The
formula amount for each State, for Indian tribes, and
for each insular area shall be the amount determined
for such State, for Indian tribes, or for such insular
area by applying the formula under subsection (a) of
this section to the total amount allocated under
section 293(1) for all States, Indian tribes, and
insular areas for the fiscal year.
``(3) Participating local jurisdictions.--The formula
amount for each participating local jurisdiction shall
be the amount determined for such participating local
jurisdiction by applying the formula under subsection
(a) of this section to the total amount allocated under
section 293(2) for all participating local
jurisdictions for the fiscal year.
``(4) Notice.--For each fiscal year referred to in
section 293, not later than 60 days after the date that
the Secretary determines the total amount available for
such fiscal year pursuant to section 292(c) for
assistance under this subtitle, the Secretary shall
cause to be published in the Federal Register a notice
that such amounts shall be so available.
``(c) Allocation Based on Affordable Housing Needs Formula.--
The allocation under this subsection for a State, for Indian
tribes, for an insular area, or for a participating local
jurisdiction for a fiscal year shall be determined as follows:
``(1) States.--The allocation for a State shall be as
follows:
``(A) Minimum amount.--If the formula amount
determined under subsection (b)(2) for the
State for the fiscal year is less than 1
percent of the total amount allocated for such
fiscal year under section 293(1), the
allocation for the State shall be 1 percent of
the total amount allocated for such fiscal year
under section 293(1).
``(B) Formula amount.--If the formula amount
determined under subsection (b)(2) for the
State for the fiscal year is 1 percent or more
of the total amount allocated for such fiscal
year under section 293(1), the allocation for
the State shall be the formula amount for the
State, except that the Secretary shall reduce
such formula amounts for all States whose
allocations are determined under this
subparagraph on a pro rata basis by the amount
necessary to account for any increases from the
formula amount for allocations made under
subparagraph (A) so that the total of the
allocations for all States pursuant to this
paragraph is equal to the aggregate of the
formula amounts under subsection (b)(2) for all
States.
``(2) Indian tribes and insular areas.--The
allocation for Indian tribes and for each insular area
shall be the formula amount for Indian tribes or for
the insular area, respectively, determined under
subsection (b), as applicable.
``(3) Participating local jurisdictions.--The
allocation for each participating local jurisdiction
shall be the formula amount for the unit determined
under subsection (b).
``(d) Grant Awards.--For each fiscal year referred to in
section 293, using the amounts made available to the Secretary
for assistance under this subtitle for such fiscal year, the
Secretary shall, subject to subsection (e), make a grant to
each State, insular area, and participating local jurisdiction
in the amount of the allocation under subsection (a)(2) or (c),
as applicable, for the State, area, or jurisdiction,
respectively.
``(e) Matching Requirement.--
``(1) In general.--Each participating jurisdiction
for a program year shall contribute to eligible
activities funded with grant amounts under this
subtitle, or require the contribution to such eligible
activities by recipients of such grant amounts of, in
addition to any such grant amounts, one dollar for
every four dollars of such grant amounts.
``(2) Reduction or waiver for recipients in fiscal
distress.--The Secretary may reduce or waive the
requirement under paragraph (1) with respect to any
participating jurisdiction that the Secretary
determines, pursuant to such demonstration by the
recipient as the Secretary shall require, is in fiscal
distress. The Secretary shall make determinations
regarding fiscal distress for purposes of this
paragraph in the same manner, and according to the same
criteria, as fiscal distress is determined with respect
to jurisdictions under section 220(d) (42 U.S.C.
12750(d)).
``(3) Qualification of services funding for match.--
For purposes of meeting the requirements of paragraph
(1), amounts that a participating jurisdiction,
recipient, or other governmental or private agency or
entity commits to contribute to provide services to
residents of affordable housing provided using grant
amounts under this subtitle, by entering into a binding
commitment for such contribution as the Secretary shall
require, shall be considered contributions to eligible
activities.
``(4) Reduction or waiver for certain activities.--
With respect to grant amounts under this subtitle made
available for a fiscal year, the Secretary shall reduce
or waive the amount of contributions otherwise required
under paragraph (1) to be made with respect to eligible
activities to be carried out with such grant amounts
and for which any variance from zoning laws or other
waiver of regulatory requirements was approved by the
local jurisdiction. Such reduction may be implemented
in the year following the year in which such activities
are funded with grant amounts under this subtitle.
``(5) Waiver for disaster areas.--In the case of any
area that is subject to a declaration by the President
of a major disaster or emergency under the Robert T.
Stafford Disaster Relief and Emergency Assistance Act
(42 U.S.C. 5121), the Secretary shall, for the fiscal
year following such declaration, waive the requirement
under paragraph (1) with respect to any eligible
activities to be carried out in such area.
``(f) Competitive Grants for Indian Tribes.--For each fiscal
year referred to in section 293, the Secretary shall, using
amounts allocated for Indian tribes pursuant to subsection
(a)(2)(B) or (c)(2), as applicable, and subject to subsection
(e), make grants to Indian tribes on a competitive basis, based
upon such criteria as the Secretary shall establish, which
shall include the factors specified in section 295(c)(2)(B).
``(g) Use by State of Unused Funds of Local Jurisdictions.--
If any participating local jurisdiction for which an allocation
is made for a fiscal year pursuant to this section notifies the
Secretary of an intent not to use all or part of such funds,
any such funds that will not be used by the jurisdiction shall
be added to the grant award under subsection (d) for the State
in which such jurisdiction is located.
``(h) Competitive Grants for Areas Without Allocation Plans
and Recipients With Insufficient Matching Contributions.--
``(1) Available amounts.--For a fiscal year, the
following amounts shall be available for grants under
this subsection:
``(A) Allocation for areas not submitting
allocation plans.--With respect to each State,
insular area, or participating local
jurisdiction that has not, before the
expiration of the 12-month period beginning
upon the date of the publication of the notice
of funding availability for such fiscal year
under subsection (b)(4), submitted to and had
approved by the Secretary an allocation plan
for such fiscal year meeting the requirements
of section 295, the amount of the allocation
for such State, insular area, or participating
local jurisdiction for such fiscal year
determined under this section.
``(B) Unmatched portion of allocation.--With
respect to any participating jurisdiction for
which the grant amount awarded under this
subtitle for such fiscal year is reduced from
the amount of the allocation determined under
this section for the participating jurisdiction
by reason of failure comply with the
requirements under subsection (e), the amount
by which such allocation for the participating
jurisdiction for the fiscal year exceeds the
grant amount for the participating jurisdiction
for the fiscal year.
``(C) Unused amounts.--Any grant amounts
under this subtitle for which the participating
jurisdiction notifies the Secretary that such
funds will not be used under this subtitle.
``(2) Notice.--For each fiscal year, not later than
60 days after the date that the Secretary determines
that the amounts described in paragraph (1) shall be
available for grants under this subsection, the
Secretary shall cause to be published in the Federal
Register a notice that such amounts shall be so
available.
``(3) Applications.--The Secretary shall provide for
nonprofit and public entities (and consortia thereof,
which may include regional consortia of units of local
government) to submit applications, during the 9-month
period beginning upon publication of a notice of
funding availability under paragraph (2) for a fiscal
year, for a grant of all or a portion of the amounts
referred to in paragraph (1) for such fiscal year. Such
an application shall include a certification that the
applicant will comply with all requirements of this
subtitle applicable to a participating jurisdiction
under this subsection.
``(4) Selection criteria.--The Secretary shall, by
regulation, establish criteria for selecting applicants
that meet the requirements of paragraph (3) for funding
under this subsection. Such criteria shall give
priority to applications that provide that grant
amounts under this subsection will be used for eligible
activities relating to affordable housing that is
located in the State or insular area, as applicable,
for which such grant funds were originally allocated
under this section.
``(5) Award and use of grant assistance.--
``(A) Award.--Subject only to the absence of
applications meeting the requirements of
paragraph (3), upon the expiration of the
period referred to in such paragraph, the
Secretary shall select an applicant or
applicants under this subsection to receive the
amounts available under paragraph (1) and shall
make a grant or grants to such applicant or
applicants. The selection shall be based upon
the criteria established under paragraph (4).
``(B) Use.--Amounts from a grant under this
subsection shall be grant amounts for purposes
of this subtitle.
``SEC. 295. STATE ALLOCATION PLANS.
``(a) In General.--Each State shall establish, in
consultation with participation local jurisdictions within the
State, an allocation plan in accordance with this section for
the distribution grant amounts provided under this subtitle to
the State and the participating local jurisdictions. The plan
shall--
``(1) provide for use of such amounts in accordance
with section 296;
``(2) be based on priority needs within the State;
and
``(3) be consistent with the comprehensive housing
affordability strategy under section 105 (42 U.S.C.
12705).
``(b) Establishment.--In establishing an allocation plan,
after consultation with participating local jurisdictions, the
State shall notify the public of the establishment of the plan,
provide an opportunity for public comments regarding the plan,
consider any public comments received, and make the completed
plan available to the public.
``(c) Contents.--Each allocation plan of a State described in
subsection (a) shall comply with the following requirements:
``(1) Application requirements for eligible
recipients.--The allocation plan shall set forth the
requirements for eligible recipients to apply to the
State to receive assistance from grant amounts under
this subtitle of the State or participating local
jurisdiction for use for eligible activities, including
a requirement that each such application include--
``(A) a description of the eligible
activities to be conducted using such
assistance; and
``(B) a certification by the eligible
recipient applying for such assistance that any
housing assisted with such grant amounts will
comply with--
``(i) all of the requirements under
this subtitle, including the targeting
requirements under section 296(c) and
the affordable housing requirements
under section 297;
``(ii) section 808(d) of the Fair
Housing Act (relating to the obligation
to affirmatively further fair housing);
and
``(iii) section 504 of the
Rehabilitation Act of 1973 (relating to
prohibition of discrimination on the
basis of disability).
``(2) Selection process and criteria for
assistance.--
``(A) Selection process.--The allocation plan
shall set forth a process for the State to
select eligible activities meeting the State's
priority housing needs for funding with grant
amounts under this subtitle of the State and
local governments, which shall comply with
requirements for such process as the Secretary
shall, by regulation, establish.
``(B) Selection criteria.--The allocation
plan shall set forth the factors for
consideration in selecting among applicants
that meet the application requirements
established pursuant to paragraph (1), which
shall provide for geographic diversity among
eligible activities to be assisted with grant
amounts of the State or participating local
jurisdictions, and shall include--
``(i) the merits of the proposed
eligible activity of the applicant,
including the extent to which the
activity addresses housing needs
identified in the allocation plan of
the participating jurisdiction and the
applicable comprehensive housing
affordability strategy or consolidated
submission referred to in subsection
(a)(3);
``(ii) the ability of the applicant
to obligate grant amounts for the
proposed eligible activities and to
undertake such activities in a timely
manner;
``(iii) the amount of assistance
leveraged by the applicant from private
and other non-Federal sources for
carrying out the eligible activities to
be funded with grant amounts under this
subtitle, including assistance made
available under section 8 of the United
States Housing Act of 1937 (42 U.S.C.
1437f) that is devoted to the project
that contains the affordable housing to
be assisted with such assistance;
``(iv) the extent of local assistance
that will be provided in carrying out
the eligible activities, including
financial assistance;
``(v) the degree to which the project
in which the affordable housing will be
located will have residents of various
incomes;
``(vi) the extent of employment and
other economic opportunities for low-
income families in the area in which
the housing will be located;
``(vii) the extent to which the
applicant demonstrates the ability to
maintain dwelling units as affordable
housing through the use of assistance
made available under this subtitle,
assistance leveraged from non-Federal
sources, assistance made available
under section 8 of the United States
Housing Act of 1937 (42 U.S.C. 1437f),
State or local assistance, programs to
increase tenant income, cross-
subsidization, and any other resources;
``(viii) the extent to which the
applicant demonstrates that the county
in which the housing is to be located
is experiencing an extremely low
vacancy rate;
``(ix) the extent to which the
percentage of the housing located in
such county that is extremely old
housing exceeds 35 percent;
``(x) the extent to which the housing
assisted with the grant amounts will be
accessible to persons with
disabilities;
``(xi) the extent to which the
applicant demonstrates that the
affordable housing assisted with the
grant amounts will be located in
proximity to public transportation, job
opportunities, child care, and
community revitalization projects;
``(xii) the extent to which the
applicant has provided that assistance
from grant amounts will be used for
eligible activities relating to housing
located in census tracts in which the
number of families having incomes less
than the poverty line is less than 20
percent; and
``(xiii) the extent to which the
housing assisted with grant amounts
will comply with energy efficiency
standards and the national Green
Communities criteria checklist for
residential construction that provides
criteria for the design, development,
and operation of affordable housing, as
the Secretary shall by regulation
provide.
A State may allocate a portion of funds under
this section for use by such State for eligible
activities pursuant to the selection process
under subparagraph (A).
``(C) Applications.--Applications for funding
eligible activities from grant amounts of the
local government shall be submitted to the
local government, and applications received by
the local government that are consistent with
the priority housing needs of the local
government shall be sent by the local
government to the State for selection by the
State in accordance with the process
established by the State.
``(3) Performance goals, benchmarks, and
timetables.--The allocation plan shall include
performance goals, benchmarks, and timetables for the
participating jurisdiction for the conducting of
eligible activities with grant amounts under this
subtitle that comply with requirements and standards
for such goals, benchmarks, and timetables as the
Secretary shall, by regulation, establish.
``(d) Review and Approval by Secretary.--
``(1) Submission.--A participating jurisdiction
described in subsection (a) shall submit an allocation
plan for the fiscal year for which the grant is made to
the Secretary not later than the expiration of the 6-
month period beginning upon the notice of funding
availability under section 294(b)(4) for such fiscal
year amounts.
``(2) Review and approval or disapproval.--The
Secretary shall review and approve or disapprove an
allocation plan not later than the expiration of the 3-
month period beginning upon submission of the plan.
``(3) Standard for disapproval.--The Secretary may
disapprove an allocation plan only if the plan fails to
comply with requirements of this section or section
296.
``(4) Resubmission upon disapproval.--If the
Secretary disapproves a plan, the participating
jurisdiction may submit to the Secretary a revised plan
for review and approval or disapproval under this
subsection.
``(5) Timing for fiscal year 2008.--With respect only
to fiscal year 2008, the Secretary may extend each of
the periods referred to in paragraphs (1) and (2), and
the period referred to in section 294(h)(1)(A), by not
more than 6 months.
``(e) Compliance With Internal Revenue Code.--A State may
combine the allocation plan and process under this section with
the qualified allocation plan and process required under
section 42 of the Internal Revenue Code of 1986.
``SEC. 296. USE OF ASSISTANCE BY RECIPIENTS.
``(a) Distribution to Recipients; Use Requirements.--Each
participating jurisdiction shall distribute grant amounts under
this subtitle of the participating jurisdiction to eligible
recipients for use in accordance with this section. Grant
amounts under this subtitle of a participating jurisdiction may
be used, or committed for use, only for eligible activities
that--
``(1) are conducted in the jurisdiction of the
participating jurisdiction;
``(2) in the case of a participating jurisdiction
that is a State, insular area, participating local
jurisdiction, or participating jurisdiction under
section 294(h), comply with the allocation plan of the
participating jurisdiction under section 295;
``(3) are selected for funding by the participating
jurisdiction in accordance with the process and
criteria for such selection established pursuant to
section 295(c)(2); and
``(4) comply with the targeting requirements under
subsection (c) of this section and the affordable
housing requirements under section 297.
``(b) Eligible Recipients.--Grant amounts under this subtitle
of a participating jurisdiction may be provided only to an
organization, agency, or other entity (including a for-profit
entity, a nonprofit entity, a faith-based organization, a
community development financial institution, a community
development corporation, and a State or local housing trust
fund) that--
``(1) demonstrates the experience, ability, and
capacity (including financial capacity) to undertake,
comply, and manage the eligible activity;
``(2) demonstrates its familiarly with the
requirements of any other Federal, State or local
housing program that will be used in conjunction with
such grant amounts to ensure compliance with all
applicable requirements and regulations of such
programs; and
``(3) makes such assurances to the participating
jurisdiction as the Secretary shall, by regulation,
require to ensure that the recipient will comply with
the requirements of this subtitle during the entire
period that begins upon selection of the recipient to
receive such grant amounts and ending upon the
conclusion of all eligible activities that are engaged
in by the recipient and funded with such grant amounts.
``(c) Targeting Requirements.--The targeting requirements
under this subsection are as follows:
``(1) Requirement of use of all amounts for
affordable housing for low-income families.--All grant
amounts under this subtitle of a participating
jurisdiction shall be distributed for use only for
eligible activities relating to affordable housing that
are for the benefit only of families whose incomes do
not exceed 80 percent of the greater of--
``(A) the median family income for the area
in which the housing is located, as determined
by the Secretary with adjustments for smaller
and larger families; and
``(B) the median family income for the State
or insular area in which the housing is
located, as determined by the Secretary with
adjustments for smaller and larger families.
``(2) Use of 75 percent for affordable housing for
extremely low-income families.--Not less than 75
percent of the grant amounts under this subtitle of a
participating jurisdiction for each fiscal year shall
be used only for eligible activities relating to
affordable housing that are for the benefit only of
families whose incomes do not exceed the higher of--
``(A) 30 percent of the median family income
for the area in which the housing is located,
as determined by the Secretary with adjustments
for smaller and larger families; and
``(B) the poverty line (as such term is
defined in section 673 of the Omnibus Budget
Reconciliation Act of 1981 (42 U.S.C. 9902),
including any revision required by such
section) applicable to a family of the size
involved.
``(3) Use of 30 percent for affordable housing for
very poor families.--Not less than 30 percent of the
grant amounts under this subtitle of a participating
jurisdiction for each fiscal year shall be used only
for eligible activities relating to affordable housing
that are for the benefit only of families whose incomes
do not exceed the maximum amount of income that an
individual or family could have, taking into
consideration any income disregards, and remain
eligible for benefits under the Supplemental Security
Income program under title XVI of the Social Security
Act (42 U.S.C. 1381 et seq.).
``(d) Use for Rural Areas.--Of the grant amounts under this
subtitle for any fiscal year for any participating jurisdiction
that is a State or participating jurisdiction that includes any
rural areas, the State or participating jurisdiction shall use
a portion for eligible activities located in rural areas that
is proportionate to the identified need for such activities in
such rural areas.
``(e) Cost Limits.--The Secretary shall establish limitations
on the amount of grant amounts under this subtitle that may be
used, on a per unit basis, for eligible activities. Such
limitations shall be the same as the per unit cost limits
established pursuant to section 212(e) (42 U.S.C. 12742(e)), as
adjusted annually, and established by number of bedrooms,
market area, and eligible activity.
``(f) Forms of Assistance.--
``(1) In general.--Assistance may be distributed
pursuant to this section in the form of--
``(A) capital grants, noninterest-bearing or
low-interest loans or advances, deferred
payment loans, guarantees, and loan loss
reserves;
``(B) in the case of assistance for ownership
of one- to four-family owner-occupied housing,
downpayment assistance, closing cost
assistance, and assistance for interest rate
buy-downs; and
``(C) any other forms of assistance approved
by the Secretary.
``(2) Repayments.--If a participating jurisdiction
awards assistance under this section in the form of a
loan or other mechanism by which funds are later repaid
to the participating jurisdiction, any repayments and
returns received by the participating jurisdiction
shall be distributed by the participating jurisdiction
in accordance with the allocation plan under section
295 for the State for the fiscal year in which such
repayments are made or returns are received.
``(g) Coordination With Other Assistance.--In distributing
assistance pursuant to this section, each participating
jurisdiction shall, to the maximum extent practicable,
coordinate such distribution with the provision of other
Federal, State, tribal, and local housing assistance,
including--
``(1) in the case of any State, housing credit dollar
amounts allocated by the State under section 42(h) of
the Internal Revenue Code of 1986;
``(2) assistance made available under subtitles A
through F (42 U.S.C. 12721 et seq.) or the community
development block grant program under title I of the
Housing and Community Development Act of 1974 (42
U.S.C. 5301 et seq.);
``(3) private activity bonds;
``(4) assistance made available under section 9 of
the United States Housing Act of 1937 (42 U.S.C.
1437g);
``(5) assistance made available under section 8(o) of
the United States Housing Act of 1937 (42 U.S.C.
1437f(o));
``(6) assistance made available under title V of the
Housing Act of 1949 (42 U.S.C. 1471 et seq.);
``(7) assistance made available under section 101 of
the Native American Housing Assistance and Self-
Determination Act of 1996 (25 U.S.C. 4111);
``(8) assistance made available from any State or
local housing trust fund established to provide or
assist in making available affordable housing; and
``(9) any other housing assistance programs.
``(h) Prohibited Uses.--The Secretary shall--
``(1) by regulation, set forth prohibited uses of
grant amounts under this subtitle, which shall include
use for--
``(A) political activities;
``(B) advocacy;
``(C) lobbying, whether directly or through
other parties;
``(D) counseling services;
``(E) travel expenses; and
``(F) preparing or providing advice on tax
returns;
``(2) by regulation, provide that, except as provided
in paragraph (3), grant amounts under this subtitle may
not be used for administrative, outreach, or other
costs of--
``(A) a participating jurisdiction; or
``(B) any recipient of such grant amounts;
and
``(3) by regulation, limit the amount of any grant
amounts under this subtitle for a fiscal year that may
be used for administrative costs of the participating
jurisdiction of carrying out the program required under
this subtitle to a percentage of such grant amounts of
the participating jurisdiction for such fiscal year,
which may not exceed 10 percent.
``(i) Labor Standards.--Each participating jurisdiction
receiving grant amounts under this subtitle shall ensure that
contracts for eligible activities assisted with such amounts
comply with the same requirements under section 286 (42 U.S.C.
12836) that are applicable to contracts for construction of
affordable housing assisted under such Act.
``(j) Compliance With Other Federal Laws.--All amounts made
available for use under this subtitle shall be allocated in
accordance with, and any eligible activities carried out in
whole or in part with grant amounts under this subtitle
(including housing provided with such grant amounts) shall
comply with and be operated in compliance with, other
applicable provisions of Federal law, including--
``(1) laws relating to tenant protections and tenant
rights to participate in decision making regarding
their residences;
``(2) laws requiring public participation, including
laws relating to Consolidated Plans, Qualified
Allocation Plans, and Public Housing Agency Plans; and
``(3) fair housing laws and laws regarding
accessibility in federally assisted housing, including
section 504 of the Rehabilitation Act of 1973.
``SEC. 297. AFFORDABLE HOUSING.
``(a) Rental Housing.--A rental dwelling unit (which may
include a dwelling unit in limited equity cooperative housing,
as such term is defined in section 143(k) of the Internal
Revenue Code of 1986 (26 U.S.C. 143(k)) or in housing of a
cooperative housing corporation, as such term is defined in
section 216(b) of the Internal Revenue Code of 1986 (26 U.S.A.
216(b))), shall be considered affordable housing for purposes
of this subtitle only if the dwelling unit is subject to
legally binding commitments that ensure that the dwelling unit
meets all of the following requirements:
``(1) Rents.--The dwelling unit bears a rent not
greater than the lesser of--
``(A) the existing fair market rental
established by the Secretary under section 8(c)
of the United States Housing Act of 1937 (42
U.S.C. 1437f(c)) for a dwelling unit of the
same size in the same market area, or the
applicable payment standard for assistance
under section 8(o) of such Act, if higher; and
``(B) a rent that does not exceed 30 percent
of the adjusted income of a family whose income
equals 65 percent of the median income for the
area, as determined by the Secretary, with
adjustment for number of bedrooms in the unit,
except that the Secretary may establish income
ceilings higher or lower than 65 percent of the
median for the area on the basis of the
findings of the Secretary that such variations
are necessary because of prevailing levels of
construction costs or fair market rents, or
unusually high or low family incomes.
``(2) Tenant rent contribution.--The contribution
toward rent by the family residing in the dwelling unit
will not exceed 30 percent of the adjusted income of
such family.
``(3) Non-discrimination against voucher holders.--
The dwelling unit is located in a project in which all
dwelling units are subject to enforceable restrictions
that provide that a unit may not be refused for leasing
to a holder of a voucher of eligibility under section 8
of the United States Housing Act of 1937 (42 U.S.C.
1437f) because of the status of the prospective tenant
as a holder of such voucher.
``(4) Mixed income.--
``(A) In general.--The dwelling unit is
located in a project in which not more than 50
percent of the rental units in the project that
receive assistance under this subtitle and are
not previously occupied may be rented initially
to families with incomes described in section
295(c)(2), as determined at a reasonable time
before occupancy.
``(B) Exceptions.--Subparagraph (A) shall not
apply in the case of a project having 25 or
fewer dwelling units that is--
``(i) located in a census tract in
which the number of families having
incomes less than the poverty line is
less than 20 percent;
``(ii) located in a rural area, as
such term is defined in section 520 of
the Housing Act of 1949 (42 U.S.C.
1490); or
``(iii) specifically made available
only for households comprised of
elderly families or disabled families.
``(5) Visitability.--To the extent the dwelling unit
is not required under Federal law to comply with
standards relating to accessibility to persons with
disabilities, the dwelling unit complies with such
basic visitability standards as the Secretary shall by
regulation provide.
``(6) Duration of use.--The dwelling unit will
continue to be subject to all requirements under this
subsection for not less than 50 years.
``(b) Owner-Occupied Housing.--For purposes of any eligible
activity involving one- to four-family owner-occupied housing
(which may include housing of a cooperative housing
corporation, as such term is defined in section 216(b) of the
Internal Revenue Code of 1986 (26 U.S.A. 216(b))), such a
residence shall be considered affordable housing for purposes
of this subtitle only if--
``(1) in the case of housing to be made available for
purchase--
``(A) the housing is available for purchase
only for use as a principal residence by
families that qualify as first-time homebuyers,
as such term is defined in section 104 (42
U.S.C. 12704), except that any reference in
such section to assistance under title II of
this Act shall for purposes of this section be
considered to refer to assistance from grant
amounts under this subtitle;
``(B) the housing has an initial purchase
price that meets the requirements of section
215(b)(1); and
``(C) the housing is subject to the same
resale restrictions established under section
215(b)(3) and applicable to the participating
jurisdiction that is the State in which such
housing is located; and
``(2) the housing is made available for purchase only
by, or in the case of assistance to a homebuyer
pursuant to this subsection, the assistance is made
available only to, homebuyers who have, before
purchase, completed a program of counseling with
respect to the responsibilities and financial
management involved in homeownership that is approved
by the Secretary; except that the Secretary may, at the
request of a State, waive the requirements of this
paragraph with respect to a geographic area or areas
within the State if--
``(A) the travel time or distance involved in
providing counseling with respect to such area
or areas, as otherwise required under this
paragraph, on an in-person basis is excessive
or the cost of such travel is prohibitive; and
``(B) the State provides alternative forms of
counseling for such area or areas, which may
include interactive telephone counseling, on-
line counseling, interactive video counseling,
and interactive home study counseling and a
program of financial literacy and education to
promote an understanding of consumer, economic,
and personal finance issues and concepts,
including saving for retirement, managing
credit, long-term care, and estate planning and
education on predatory lending, identity theft,
and financial abuse schemes relating to
homeownership that is approved by the
Secretary, except that entities providing such
counseling shall not discriminate against any
particular form of housing.
``SEC. 298. OTHER PROVISIONS.
``(a) Effect of Assistance Under Program.--Notwithstanding
any other provision of law, the provision of assistance under
this subtitle for a project shall not reduce the amount of
assistance for which such project is otherwise eligible under
subtitles A through F of this title, if the project does not
exceed the cost limits established pursuant to section 296(e).
``(b) Accountability of Participating Jurisdictions and
Recipients.--
``(1) Recipients.--
``(A) Tracking of funds.--The Secretary
shall--
``(i) require each participating
jurisdiction to develop and maintain a
system to ensure that each recipient of
assistance from grant amounts under
this subtitle of the participating
jurisdiction uses such amounts in
accordance with this subtitle, the
regulations issued under this subtitle,
and any requirements or conditions
under which such amounts were provided;
and
``(ii) establish minimum requirements
for agreements, between the
participating jurisdiction and
recipients, regarding assistance from
the grant amounts under this subtitle
of the participating jurisdiction,
which shall include--
``(I) appropriate continuing
financial and project
reporting, record retention,
and audit requirements for the
duration of the grant to the
recipient to ensure compliance
with the limitations and
requirements of this subtitle
and the regulations under this
subtitle; and
``(II) any other requirements
that the Secretary determines
are necessary to ensure
appropriate grant
administration and compliance.
``(B) Misuse of funds.--
``(i) Reimbursement requirement.--If
any recipient of assistance from grant
amounts under this subtitle of a
participating jurisdiction is
determined, in accordance with clause
(ii), to have used any such amounts in
a manner that is materially in
violation of this subtitle, the
regulations issued under this subtitle,
or any requirements or conditions under
which such amounts were provided, the
participating jurisdiction shall
require that, within 12 months after
the determination of such misuse, the
recipient shall reimburse the
participating jurisdiction for such
misused amounts and return to the
participating jurisdiction any amounts
from the grant amounts under this
subtitle of the participating
jurisdiction that remain unused or
uncommitted for use. The remedies under
this clause are in addition to any
other remedies that may be available
under law.
``(ii) Determination.--A
determination is made in accordance
with this clause if the determination
is--
``(I) made by the Secretary;
or
``(II)(aa) made by the
participating jurisdiction;
``(bb) the participating
jurisdiction provides
notification of the
determination to the Secretary
for review, in the discretion
of the Secretary, of the
determination; and
``(cc) the Secretary does not
subsequently reverse the
determination.
``(2) Participating jurisdictions.--
``(A) Report.--
``(i) In general.--The Secretary
shall require each participating
jurisdiction receiving grant amounts
under this subtitle for a fiscal year
to submit a report, for such fiscal
year, to the Secretary that--
``(I) describes the
activities funded under this
subtitle during such year with
the grant amounts under this
subtitle of the participating
jurisdiction; and
``(II) the manner in which
the participating jurisdiction
complied during such fiscal
year with the allocation plan
established pursuant to section
295 for the participating
jurisdiction.
``(ii) Public availability.--The
Secretary shall make such reports
pursuant to this subparagraph publicly
available.
``(B) Misuse of funds.--If the Secretary
determines, after reasonable notice and
opportunity for hearing, that a participating
jurisdiction has failed to comply substantially
with any provision of this subtitle and until
the Secretary is satisfied that there is no
longer any such failure to comply, the
Secretary shall--
``(i) reduce the amount of assistance
under this section to the participating
jurisdiction by an amount equal to the
amount of grant amounts under this
subtitle which were not used in
accordance with this subtitle;
``(ii) require the participating
jurisdiction to repay the Secretary an
amount equal to the amount of the grant
amounts under this subtitle which were
not used in accordance with this
subtitle;
``(iii) limit the availability of
assistance under this subtitle to the
participating jurisdiction to
activities or recipients not affected
by such failure to comply; or
``(iv) terminate any assistance under
this subtitle to the participating
jurisdiction.
``(C) Unexpended funds.--Grant amounts under
this subtitle that are not committed to
projects by the State or participating local
jurisdiction before the expiration of the 24-
month period beginning the last day of the
month in which the Secretary executes the grant
agreement with the State or participating local
jurisdiction shall be recaptured by the
Secretary and added to amounts available in the
following fiscal year for formula allocation
under section 294.
``SEC. 299. DEFINITIONS.
``For purposes of this subtitle, the following definitions
shall apply:
``(1) Eligible activities.--The term `eligible
activities' means activities relating to the
construction, preservation, or rehabilitation of
affordable rental housing or affordable one- to four-
family owner-occupied housing, including--
``(A) the construction of new housing;
``(B) the acquisition of real property;
``(C) site preparation and improvement,
including demolition;
``(D) rehabilitation of existing housing;
``(E) use of funds to facilitate
affordability for homeless and other extremely
low-income households of dwelling units
assisted with grant amounts under this
subtitle, in a combined amount not to exceed 20
percent of the project grant amount, for--
``(i) project-based rental assistance
for not more than 12 months for a
project assisted with grant amounts
under this subtitle;
``(ii) project operating reserves for
use to cover the loss of rental
assistance or in conjunction with a
project loan; or
``(iii) project operating accounts
used to cover net operating income
shortfalls for dwelling units assisted
with grant amounts under this subtitle;
and
``(F) providing incentives to maintain
existing housing (including manufactured
housing) as affordable housing and to establish
or extend any low-income affordability
restrictions for such housing, including
covering capital expenditures and costs of
establishing community land trusts to provide
sites for manufactured housing provided such
incentives;
``(2) Eligible recipient.--The term `eligible
recipient' means an entity that meets the requirements
under section 296(b) for receipt of grant amounts under
this subtitle of a participating jurisdiction.
``(3) Extremely low vacancy rate.--The term
`extremely low vacancy rate' means a housing or rental
vacancy rate of 2 percent or less.
``(4) Extremely old housing.--The term `extremely old
housing' means housing that is 45 years old or older.
``(5) Families.--The term `families' has the meaning
given such term in section 3(b) of the United States
Housing Act of 1937 (42 U.S.C. 1437a(b)).
``(6) Fiscal distress; severe fiscal distress.--The
terms `fiscal distress' and `severe fiscal distress'
have the meanings given such terms in section 220(d).
``(7) Grant amounts.--The term `grant amounts' means
amounts that are provided to a participating
jurisdiction pursuant to subsection (d), (f), or (h) of
section 294.
``(8) Indian tribe.--The term `Indian tribe' means a
federally recognized Indian tribe.
``(9) Insular area.--The term `insular area' has the
meaning given such term in section 104.
``(10) Participating local jurisdiction.--The term
`participating local jurisdiction' means, with respect
to a fiscal year--
``(A) any unit of general local government
(as such term is defined in section 104 (42
U.S.C. 12704) that qualifies as a participating
jurisdiction under section 216 (42 U.S.C.
12746) for such fiscal year; and
``(B) at the option of such a consortium, any
consortium of units of general local
governments that is designated pursuant to
section 216 (42 U.S.C. 12746) as a
participating jurisdiction for purposes of
title II.
``(11) Participating jurisdiction.--The term
`participating jurisdiction' means--
``(A) a State, insular area, or participating
local jurisdiction for which a grant is made
under section 294(d);
``(B) an Indian tribe for which a grant is
made under section 294(f); or
``(C) a nonprofit or public entity for which
a grant is made under section 294(h).
``(12) Poverty line.--The term `poverty line' has the
meaning given such term in section 673(2) of the
Omnibus Budget Reconciliation Act of 1981, including
any revision required by such section.
``(13) Recipient.--The term `recipient' means an
entity that receives assistance from a participating
jurisdiction, pursuant to section 296(a), from grant
amounts under this subtitle of the participating
jurisdiction.
``(14) Rural area.--The term `rural area' has the
meaning given such term in section 520 of the Housing
Act of 1949 (42 U.S.C. 1490).
``(15) Secretary.--The term `Secretary' means the
Secretary of Housing and Urban Development.
``(16) State.--The term `State' has the meaning given
such term in section 104.
``SEC. 300. INAPPLICABILITY OF HOME PROVISIONS.
``Except as specifically provided otherwise in this subtitle,
no requirement under, or provision of, subtitles B through D of
this title shall apply to assistance provided under this
subtitle.
``SEC. 301. REGULATIONS AND REPORTS.
``(a) Regulations.--Not later than 6 months after the date of
enactment of the National Affordable Housing Grant Act of 2007,
the Secretary of Housing and Urban Development shall promulgate
regulations to carry out this subtitle, which shall include
regulations establishing the affordable housing needs formula
in accordance with section 294(a).
``(b) Reports on HOME Program Streamlining.--Not later than
the expiration of the 6-month period referred to in subsection
(a), the Secretary of Housing and Urban Development and the
Comptroller General of the United States shall each submit to
the Congress a report making recommendations for streamlining
the various programs for assistance under this title, including
the HOME Investment Partnerships program under subtitle A, the
Community Housing Partnership program under subtitle B, the
Downpayment Assistance Initiative under subtitle E, and the
National Affordable Housing Grant Program under this
subtitle.''.
(b) Program Year for Matching Contributions.--Section 220 of
the Cranston-Gonzalez National Affordable Housing Act (42
U.S.C. 12750) is amended--
(1) in subsection (a)--
(A) by striking ``a fiscal year'' and
inserting ``a program year of the
jurisdiction''; and
(B) by striking ``such fiscal year'' and
inserting ``such program year''; and
(2) in subsection (d)--
(A) in paragraph (1), by striking ``fiscal
year'' and inserting ``program year of the
jurisdiction'';
(B) in paragraph (3), by striking ``fiscal
year'' each place such term appears and
inserting ``program year''; and
(C) in paragraph (5), by striking ``fiscal
year'' and inserting ``program year of the
jurisdiction''.