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[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''.

                                  
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