I

103D CONGRESS

2D SESSION H. R. 5275

To establish a Federal Housing Trust Fund to provide decent, safe, and

affordable housing for low-income families lacking such housing.

IN THE HOUSE OF REPRESENTATIVES

OCTOBER 7, 1994

Mr. OWENS introduced the following bill; which was referred jointly to the

Committees on Ways and Means and Banking, Finance and Urban Affairs

A BILL

To establish a Federal Housing Trust Fund to provide decent, safe, and affordable housing for low-income families

lacking such housing.

1 Be it enacted by the Senate and House of Representa2 tives of the United States of America in Congress assembled,

3 SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.

4 (a) SHORT TITLE.—This Act may be cited as the

5 ‘‘Federal Housing Trust Fund Act of 1994’’.

6 (b) TABLE OF CONTENTS.—The table of contents for

7 this Act is as follows:

Sec. 1. Short title and table of contents.

TITLE I—REDUCTION OF CERTAIN TAX BENEFITS FOR HIGHER

INCOME TAXPAYERS AND ESTABLISHMENT OF HOUSING

TRUST FUND
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Sec. 101. Reduction of certain tax benefits for higher income taxpayers.

Sec. 102. Repeal of increase in basis of property acquired from a decedent;

phasein of capital gains tax on inherited property.

Sec. 103. Establishment of Housing Trust Fund.

TITLE II—ADMINISTRATION OF HOUSING TRUST FUND AND ENTITLEMENT PROGRAM FOR FORMULA GRANTS FOR AFFORDABLE HOUSING

Sec. 201. Grants for eligible public entities.

Sec. 202. Eligible activities for use of grant amounts.

Sec. 203. Housing costs assistance program.

Sec. 204. Housing supply assistance program.

Sec. 205. Affordability.

Sec. 206. Eligible public entities.

Sec. 207. Requirements of eligible public entities.

Sec. 208. Trust Fund grant plans.

Sec. 209. Allocation of Trust Fund amounts for States, entitlement communities, and Indian tribes.

Sec. 210. Grant allotments.

Sec. 211. Maintenance of State and local effort.

Sec. 212. Compliance.

Sec. 213. Administrative expenses.

Sec. 214. Housing Trust Fund Program Advisory Committee.

Sec. 215. Administrator of Trust Fund in Department of Housing and Urban

Development.

Sec. 216. Definitions.

Sec. 217. Regulations.

1 TITLE I—REDUCTION OF CER2 TAIN TAX BENEFITS FOR

3 HIGHER INCOME TAXPAYERS

4 AND ESTABLISHMENT OF

5 HOUSING TRUST FUND

6 SEC. 101. REDUCTION OF CERTAIN TAX BENEFITS FOR

7 HIGHER INCOME TAXPAYERS.

8 (a) IN GENERAL.—Part I of subchapter B of chapter

9 1 of the Internal Revenue Code of 1986 (relating to defini10 tion of gross income, adjusted gross income, taxable in11 come, etc.) is amended by adding at the end the following

12 new section:
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1 ‘‘SEC. 69. LIMITATION ON CERTAIN TAX BENEFITS FOR

2 HIGHER INCOME TAXPAYERS.

3 ‘‘(a) IN GENERAL.—In the case of an individual, the

4 limitations of this section apply if the taxpayer’s modified

5 adjusted gross income for the taxable year exceeds

6 $75,000.

7 ‘‘(b) LIMITATIONS ON DEDUCTION FOR MORTGAGE

8 INTEREST AND PROPERTY TAXES.—In the case of a tax9 payer to whom this section applies for the taxable year—

10 ‘‘(1) the amount of qualified residence interest

11 (as defined in section 163(h)(3)) which is allowed as

12 a deduction under section 163 shall not exceed the

13 applicable percentage of such interest, and

14 ‘‘(2) the amount of real property taxes which is

15 allowed as a deduction under section 164 shall not

16 exceed the applicable percentage of such taxes.

17 ‘‘(c) APPLICABLE PERCENTAGE.—For purposes of

18 this section—

19 ‘‘(1) IN GENERAL.—The term ‘applicable per20 centage’ means 100 percent reduced (but not below

21 the 50 percent) by 3 percentage points for each

22 $1,000 by which the modified adjusted gross income

23 of the taxpayer for the taxable year exceeds

24 $75,000.

25 ‘‘(2) PHASE-IN.—In the case of taxable years

26 beginning before January 1, 2000, paragraph (1)
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1 shall be applied by substituting for ‘50 percent’ the

2 percentage determined in accordance with the follow3 ing table:

‘‘In the case of taxable The percentage

years beginning in calendar year: is:

1996 .......................................................................... 90 percent

1997 .......................................................................... 80 percent

1998 .......................................................................... 70 percent

1999 .......................................................................... 60 percent.

4 ‘‘(d) MODIFIED ADJUSTED GROSS INCOME.—For

5 purposes of this section, the term ‘modified adjusted gross

6 income’ means adjusted gross income—

7 ‘‘(1) determined without regard to this section,

8 sections 911, 931, and 933, and the deductions re9 ferred to in subsection (b), and

10 ‘‘(2) increased by the amount of interest re11 ceived or accrued by the individual during the tax12 able year which is exempt from tax.

13 ‘‘(e) COORDINATION WITH SECTION 68.—This sec14 tion shall be applied before section 68 with respect to the

15 deductions referred to in subsection (b).’’

16 (b) CONFORMING AMENDMENT.—The table of sec17 tions for such part I is amended by adding at the end

18 the following new item:

‘‘Sec. 69. Limitation on certain tax benefits for higher income

taxpayers.’’

19 (c) EFFECTIVE DATE.—The amendments made by

20 this section shall apply to taxable years beginning after

21 December 31, 1995.
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1 SEC. 102. REPEAL OF INCREASE IN BASIS OF PROPERTY AC2 QUIRED FROM A DECEDENT; PHASEIN OF

3 CAPITAL GAINS TAX ON INHERITED PROP4 ERTY.

5 (a) IN GENERAL.—Section 1014 of the Internal Rev6 enue Code of 1986 (relating to basis of property acquired

7 from a decedent) is hereby repealed.

8 (b) BASIS TO BE DETERMINED UNDER RULES AP9 PLICABLE TO GIFTS.—Section 1015 of such Code (relat10 ing to basis of property acquired by gifts and transfers

11 in trusts) is amended by adding at the end the following

12 new subsection:

13 ‘‘(f) PROPERTY ACQUIRED FROM OR PASSING FROM

14 A DECEDENT.—

15 ‘‘(1) IN GENERAL.—Property acquired from a

16 decedent dying after December 31, 1995, or passed

17 from such a decedent shall be treated for purposes

18 of subsection (a) as acquired by gift for purposes of

19 this section.

20 ‘‘(2) PROPERTY ACQUIRED FROM A DECE21 DENT.—Section 1014(b) (as in effect on the day be22 fore the date of the enactment of the Federal Hous23 ing Trust Fund Act of 1994) shall apply for pur24 poses of whether property is considered to have been

25 acquired from or to have passed from the decedent.
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1 ‘‘(3) INCREASE IN BASIS FOR ESTATE TAX

2 PAID.—

3 ‘‘(A) IN GENERAL.—The basis of any

4 property which this subsection applies shall be

5 the basis determined under subsection (a) in6 creased by the portion of the aggregate death

7 tax adjustment which is allocated to the prop8 erty pursuant to this paragraph.

9 ‘‘(B) LIMITATION.—The death tax adjust10 ment for any property shall not exceed—

11 ‘‘(i) the net appreciation in such prop12 erty, multiplied by

13 ‘‘(ii) the Federal marginal estate tax

14 rate.

15 ‘‘(C) NET APPRECIATION.—For purposes

16 of this paragraph, the net appreciation in value

17 of any property is the amount by which—

18 ‘‘(i) the fair market value of such

19 property, exceeds

20 ‘‘(ii) the initial basis of such property

21 increased by the minimum basis adjust22 ment of such property.

23 ‘‘(4) AGGREGATE DEATH TAX ADJUSTMENT.—

24 In the case of any estate—
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1 ‘‘(A) IN GENERAL.—The aggregate death

2 tax adjustment is the product of—

3 ‘‘(i) the aggregate net appreciation of

4 all properties which have net appreciation,

5 and

6 ‘‘(ii) the Federal marginal estate tax

7 rate.

8 ‘‘(B) LIMITATION.—The amount taken

9 into account under subparagraph (A)(i) shall

10 not exceed the taxable estate.

11 ‘‘(C) FEDERAL MARGINAL ESTATE TAX

12 RATE.—The term ‘Federal marginal estate tax

13 rate’ means the highest rate in the rate sched14 ule set forth in section 2001(c)—

15 ‘‘(i) which is used in determining the

16 tentative tax under section 2001(b)(1) with

17 respect to the estate of the decedent, and

18 ‘‘(ii) the amount subject to which is at

19 least $50,000.

20 In no event shall the Federal marginal estate

21 tax rate be less than 30 percent.

22 ‘‘(5) ALLOCATION RULES.—The executor shall

23 allocate the adjustments under this subsection

24 among the properties on the return of the tax im25 posed by chapter 11.’’
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1 (c) PHASE-IN OF CAPITAL GAINS TAX ON INHERITED

2 PROPERTY.—Subsection (h) of section 1 of such Code (re3 lating to maximum capital gains rate) is amended to read

4 as follows:

5 ‘‘(h) MAXIMUM CAPITAL GAINS RATE.—

6 ‘‘(1) IN GENERAL.—If a taxpayer has a net

7 capital gain for any taxable year, then the tax im8 posed by this section shall not exceed the sum of—

9 ‘‘(A) a tax computed at the rates and in

10 the same manner as if this subsection had not

11 been enacted on the greater of—

12 ‘‘(i) taxable income reduced by the

13 amount of the net capital gain, or

14 ‘‘(ii) the amount of taxable income

15 taxed at a rate below 28 percent, plus

16 ‘‘(B) a tax equal to the sum of—

17 ‘‘(i) the applicable percentage of so

18 much of such net capital gain as is attrib19 utable to property acquired by the tax20 payer from a decedent dying after Decem21 ber 31, 1995 (or passed to the taxpayer

22 from such a decedent), and

23 ‘‘(ii) 28 percent of the amount of the

24 taxable income in excess of the sum of the

25 amount determined under subparagraph
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1 (A) and the net capital gain described in

2 clause (i) of this subparagraph.

3 ‘‘(2) APPLICABLE PERCENTAGE.—For purposes

4 of paragraph (1), the term ‘applicable percentage’

5 means—

6 ‘‘(A) 10 percent in the case of taxable

7 years ending during 1996,

8 ‘‘(B) 15 percent in the case of taxable

9 years ending during 1997,

10 ‘‘(C) 20 percent in the case of taxable

11 years ending during 1998, and

12 ‘‘(D) 25 percent in the case of taxable

13 years ending during 1999.

14 ‘‘(3) ELECTION TO MARK-TO-MARKET PROP15 ERTY ACQUIRED FROM A DECEDENT.—If the tax16 payer elects this paragraph with respect to any prop17 erty described in paragraph (1)(B)(i), such property

18 shall be treated as sold (for its fair market value as

19 of the first day of the taxpayer year) and any gain

20 or loss shall be treated as received or accrued on

21 such day.’’

22 (d) CONFORMING AMENDMENTS.—

23 (1) The table of sections for part II of sub24 chapter O of chapter 1 of such Code is amended by

25 striking the item relating to section 1014.
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1 (2) The heading of section 1015 of such Code

2 is amended to read as follows:

3 ‘‘SEC. 1015. BASIS OF PROPERTY ACQUIRED BY GIFT, FROM

4 A DECEDENT, OR TRANSFERRED IN TRUST.’’

5 (3) The table of sections for part II of sub6 chapter O of chapter 1 of such Code is amended by

7 striking the item relating to section 1015 and insert8 ing the following new item:

‘‘Sec. 1015. Basis of property acquired by gift, from a decedent,

or transferred in trust.’’

9 (e) EFFECTIVE DATES.—

10 (1) CARRYOVER BASIS.—Except as provided in

11 paragraph (2), the amendments made by this section

12 shall apply to decedents dying after December 31,

13 1995.

14 (2) TAX ON INHERITED PROPERTY.—The

15 amendment made by subsection (c) shall apply to

16 taxable years ending after December 31, 1995.

17 SEC. 103. ESTABLISHMENT OF HOUSING TRUST FUND.

18 (a) IN GENERAL.—Subchapter A of chapter 98 of the

19 Internal Revenue Code of 1986 (relating to trust funds)

20 is amended by adding at the end thereof the following new

21 section:

22 ‘‘SEC. 9512. HOUSING TRUST FUND.

23 ‘‘(a) CREATION OF TRUST FUND.—There is hereby

24 established in the Treasury of the United States a trust
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1 fund to be known as the ‘Housing Trust Fund’, consisting

2 of such amounts as may be appropriated or credited to

3 such trust fund as provided in this section, section

4 9602(b) of this title, or section 201(e) or 212(a)(3)(B)

5 of the Federal Housing Trust Fund Act of 1994.

6 ‘‘(b) CREDITS TO TRUST FUND.—There are hereby

7 appropriated to the Housing Trust Fund amounts equiva8 lent to the increase in income tax liability attributable to

9 section 69.

10 ‘‘(c) EXPENDITURES FROM TRUST FUND.—Amounts

11 in the Housing Trust Fund are available each fiscal year

12 to the Secretary of Housing and Urban Development for

13 carrying out title II of the Federal Housing Trust Fund

14 Act of 1994, but shall not be available for any other pur15 pose.’’.

16 (b) CLERICAL AMENDMENT.—The table of sections

17 for such subchapter A is amended by adding at the end

18 thereof the following new item:

‘‘Sec. 9512. Housing Trust Fund.’’.
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1 TITLE II—ADMINISTRATION OF

2 HOUSING TRUST FUND AND

3 ENTITLEMENT PROGRAM FOR

4 FORMULA GRANTS FOR AF5 FORDABLE HOUSING

6 SEC. 201. GRANTS FOR ELIGIBLE PUBLIC ENTITIES.

7 (a) IN GENERAL.—The Secretary of Housing and

8 Urban Development shall, for fiscal year 1995 and each

9 fiscal year thereafter, make a grant under this title to each

10 eligible public entity for which an allotment is made under

11 section 210. The amount of the grant for such an eligible

12 public entity shall be equal to the amount of the allotment

13 for the eligible public entity determined in accordance with

14 section 209.

15 (b) USE OF TRUST FUNDS.—Grants under this title

16 shall be made only using amounts from the Housing Trust

17 Fund established in section 9512 of the Internal Revenue

18 Code of 1986.

19 (c) ENTITLEMENT STATUS OF GRANTS.—

20 (1) IN GENERAL.—Subject to subsection (d),

21 each eligible public entity is entitled to payment of

22 the grant required by subsection (a) for fiscal year

23 1995 and each subsequent fiscal year.

24 (2) RULE OF CONSTRUCTION.—Paragraph (1)

25 may not be construed to establish, with respect to
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1 this section, an entitlement of any individual to have

2 carried out on behalf of the individual any activity

3 authorized in this title.

4 (d) LIMITATIONS.—An entitlement is established pur5 suant to subsection (a) for a fiscal year for an eligible pub6 lic entity—

7 (1) only to the extent that there are amounts

8 in the Fund and only to the extent of the amount

9 of the allotment made under section 210 for the en10 tity; and

11 (2) only if the allotment for the entity has not

12 been terminated pursuant to section 212(c)(1).

13 (e) DURATION OF AVAILABILITY OF GRANT

14 AMOUNTS.—With respect to the 24-month period begin15 ning on the date on which a grant under subsection (a)

16 for a fiscal year becomes available to an eligible public en17 tity, any portion of the grant that is not obligated by the

18 entity before the expiration of such period shall be covered

19 into the Fund and be available for grants under such sub20 section for the following fiscal year.

21 (f) PAYMENT OF GRANT AMOUNTS.—The grant

22 amounts for each eligible public entity shall be paid di23 rectly to the agency designated pursuant to section 206(2)

24 by the eligible public entity and shall be available only for

25 activities authorized under section 202.
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1 SEC. 202. ELIGIBLE ACTIVITIES FOR USE OF GRANT

2 AMOUNTS.

3 (a) IN GENERAL.—Grant amounts provided under

4 this title for a fiscal year may be expended by the eligible

5 public entity receiving the grant only in accordance with

6 the Trust Fund grant plan for the entity for such year

7 approved by the Secretary under section 208 to carry

8 out—

9 (1) a housing costs assistance program under

10 section 203;

11 (2) a housing supply assistance program under

12 section 204; and

13 (3) administrative activities, to the extent pro14 vided in subsection (c).

15 (b) ALLOCATION OF GRANT AMOUNTS BETWEEN

16 PROGRAMS.—

17 (1) IN GENERAL.—Except to the extent pro18 vided in subsection (a)(3) and paragraph (2) of this

19 subsection, from the grant amounts provided to an

20 eligible public entity for a fiscal year, the entity shall

21 use—

22 (A) the amount provided to the entity

23 under paragraph (1)(A), (2)(A), or (3)(A), as

24 applicable, of section 210(a) for carrying out

25 the housing costs assistance program under sec26 tion 203 of the entity; and
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1 (B) the amount provided to the entity

2 under paragraph (1)(B), (2)(B), or (3)(B), as

3 applicable, of section 210(a) for carrying out

4 the housing supply assistance program under

5 section 204 of the entity.

6 (2) EXCEPTION.—If in any fiscal year any

7 grant amounts referred to in paragraph (1)(A) re8 main available for commitment for housing costs as9 sistance for eligible families 9 months after such

10 amounts are first made available to the eligible pub11 lic entity because of a lack of eligible families or the

12 failure of eligible families to obtain suitable dwelling

13 units, the eligible public entity may use such

14 amounts for carrying out the housing supply assist15 ance program of the entity.

16 (c) ADMINISTRATIVE EXPENSES.—

17 (1) LIMITATION.—An eligible public entity that

18 receives grant amounts for a fiscal year may use for

19 administrative expenses relating to carrying out the

20 housing costs assistance program and housing sup21 ply assistance program of the entity not more than

22 the applicable percentage of such amounts as the

23 Secretary shall establish by regulation for purposes

24 of this subsection. The Secretary may establish dif25 ferent percentage limitations based on the amount of
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1 grant amounts received, but no such limitation may

2 exceed 6 percent.

3 (2) INCLUDED EXPENSES.—For purposes of

4 paragraph (1), the term ‘‘administrative expenses’’

5 includes expenses relating to performance reports re6 quired under section 212(a), expenses of a public en7 tity in administering a grant under this section, and

8 expenses of a public entity or other subgrantee orga9 nization or entity in administering a housing costs

10 assistance program or housing supply assistance

11 program.

12 SEC. 203. HOUSING COSTS ASSISTANCE PROGRAM.

13 (a) REQUIREMENT TO CARRY OUT PROGRAM.—Each

14 eligible public entity that receives grant amounts under

15 paragraph (1)(A), (2)(A), or (3)(A), as applicable, of sec16 tion 210(a) shall carry out a housing costs assistance pro17 gram under this section using such grant amounts to pro18 vide financial assistance on behalf of eligible families for

19 the rental or purchase of dwelling units occupied by such

20 families.

21 (b) ELIGIBLE HOUSING.—A housing costs assistance

22 program may provide assistance on behalf of an eligible

23 family only for the costs of—

24 (1) renting a dwelling unit that is—

25 (A) affordable housing;
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1 (B) under lease for occupancy by the fam2 ily as its principal residence; and

3 (C) except as provided in subsection (e)(4),

4 located in the jurisdiction of the eligible public

5 entity carrying out the program; or

6 (2) purchasing a dwelling unit that is—

7 (A) the principal residence of the family;

8 (B) security for (or subject to a mortgage

9 that secures) repayment of the outstanding obli10 gation of a loan made for purchase of the dwell11 ing by the family; and

12 (C) except as provided in subsection (e)(4),

13 located in the jurisdiction of the eligible public

14 entity carrying out the program.

15 (c) AMOUNT OF ASSISTANCE.—The amount of finan16 cial assistance provided under a housing costs assistance

17 program on behalf of an eligible family shall be the

18 amount equal to the amount by which the fair market

19 rental for a dwelling unit of the size appropriate for the

20 family in the applicable housing market area exceeds the

21 lesser of 30 percent of the adjusted income of the family

22 or 5 percent of the gross income of the family.

23 (d) PRIORITIES.—If the grant amounts provided for

24 a fiscal year for an eligible public entity are insufficient

25 to provide assistance under the housing costs assistance
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1 program of the entity for all eligible families residing in

2 the jurisdiction of the entity—

3 (1) 70 percent of the grant amounts received by

4 the entity under paragraph (1)(A), (2)(A), or (3)(A),

5 as applicable, of section 210(a) shall be used subject

6 to a preference for assisting eligible families de7 scribed in section 8(d)(1)(A)(i) of the United States

8 Housing Act of 1937; and

9 (2) 30 percent of such grant amounts shall be

10 used subject to a preference for assisting eligible

11 families who qualify under a system of local pref12 erences established by the eligible public entity.

13 (e) METHOD OF ASSISTANCE.—Under a housing

14 costs assistance program under this section—

15 (1) the eligible public entity carrying out the

16 program shall make assistance payments on behalf

17 of the eligible family assisted to the owner of, or

18 mortgage servicer for, the dwelling unit occupied by

19 the eligible family;

20 (2) the owner of a rental dwelling unit to be oc21 cupied by a family assisted under the program shall

22 enter into a contract with the eligible public entity

23 that—

24 (A) provides for making of the assistance

25 payments under the program;
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1 (B) has a term not shorter than the term

2 of the lease for the dwelling unit and not longer

3 than 60 months; and

4 (C) provides that the housing shall be sub5 ject to the procedures established under section

6 207(b)(3) by the eligible public entity to ensure

7 compliance of the housing with housing codes or

8 quality standards;

9 (3) a family assisted under the program who is

10 purchasing the dwelling occupied by the family shall

11 enter into a contract with the eligible public entity

12 that—

13 (A) provides for the making the assistance

14 payments under the program;

15 (B) has a term not longer than 60 months,

16 which shall be renewable subject only to the

17 availability of amounts, the need for such as18 sistance, and compliance by the assisted family

19 with the conditions of the program; and

20 (C) provides that the housing shall be sub21 ject to the procedures established under section

22 207(b)(3) by the eligible public entity to ensure

23 compliance of the housing with housing codes or

24 quality standards; and
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1 (4) any eligible family on behalf of whom assist2 ance is provided under the program and who moves

3 to an affordable dwelling unit located not more than

4 100 miles from the jurisdiction of the eligible public

5 entity providing such assistance may use the assist6 ance to rent or purchase the dwelling unit.

7 (f) HOUSING CHOICE ASSISTANCE.—

8 (1) IN GENERAL.—A housing costs assistance

9 program may reserve not more than 20 percent of

10 the amount of assistance available for any fiscal year

11 under the program for use only to provide assistance

12 under the program for eligible families who are mi13 nority families and are moving to dwelling units lo14 cated in areas without high concentrations of per15 sons living in poverty.

16 (2) AUTHORITY TO INCREASE ASSISTANCE.—

17 Notwithstanding subsection (c), the amount of fi18 nancial assistance provided under a housing costs

19 assistance program on behalf of an eligible family

20 who meets the requirements for assistance with

21 amounts reserved under this subsection may exceed

22 the amount determined under subsection (c), but

23 only to the extent necessary to enable the family as24 sisted to relocate to and maintain residence in an af-
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1 fordable dwelling unit in an area described in para2 graph (1) of this subsection.

3 (3) AMOUNT OF INCREASE.—In no event may

4 the amount of such financial assistance exceed the

5 sum of—

6 (A) the cost of relocating to a dwelling unit

7 in an area described in paragraph (1); and

8 (B) the difference between (i) the amount

9 by which 125 percent of the fair market rental

10 for a dwelling unit of the size appropriate for

11 the family and located in the applicable housing

12 market (to which the family is moving), and (ii)

13 the lesser of 30 percent of the adjusted income

14 of the family or 5 percent of the gross income

15 of the family.

16 (g) HOUSING COUNSELING.—Each family assisted

17 under a housing costs assistance program shall be pro18 vided counseling regarding housing quality, obtaining a

19 decent and affordable dwelling unit, and the choice of a

20 neighborhood in which to reside.

21 (h) REQUIREMENTS FOR HOMEOWNERSHIP ASSIST22 ANCE.—The Secretary shall by regulation establish re23 quirements applicable to housing costs assistance pro24 grams established under this section to provide that, in

25 the case of assistance for purchase of a dwelling unit—
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1 (1) such assistance is provided only on behalf of

2 eligible families for whom the terms of the purchase

3 (including the loan amount and interest rate, other

4 financing provisions, and other obligations) are rea5 sonable, taking into consideration the assets, income,

6 and obligations of the eligible family assisted; and

7 (2) upon the sale of the dwelling unit by the eli8 gible family, the housing costs assistance program

9 shall recapture from any net proceeds of the sale the

10 amount necessary to avoid any unreasonable profit

11 to the eligible family and make such amount avail12 able for use under the program.

13 SEC. 204. HOUSING SUPPLY ASSISTANCE PROGRAM.

14 (a) REQUIREMENT TO CARRY OUT PROGRAM.—Each

15 eligible public entity that receives grant amounts under

16 paragraph (1)(B), (2)(B), or (3)(B), as applicable, of sec17 tion 210(a) shall carry out a housing supply assistance

18 program under this section using such grant amounts to

19 provide financial assistance for increasing the supply of

20 affordable housing in the jurisdiction of the eligible public

21 entity.

22 (b) ELIGIBLE HOUSING DEVELOPMENT ACTIVI23 TIES.—

24 (1) IN GENERAL.—A housing supply assistance

25 program shall provide assistance for the development
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1 of affordable housing for rental or homeownership.

2 Such assistance may be provided for the acquisition,

3 new construction, reconstruction, and moderate or

4 substantial rehabilitation of affordable housing,

5 which may include costs for real property acquisi6 tion, site improvement, conversion, and demolition,

7 financing costs, relocation expenses of any displaced

8 persons, families, businesses, or organizations, rea9 sonable administrative and planning costs, and any

10 other expenses as the Secretary may provide.

11 (2) AFFORDABILITY REQUIREMENT.—Any

12 housing for which assistance is provided pursuant to

13 paragraph (1) with grant amounts shall be subject

14 to binding restrictions sufficient to ensure that, for

15 the entire useful life of the housing, the housing is

16 used as affordable housing.

17 (3) COST LIMITS.—The Secretary shall by regu18 lation establish limitations on the amount of assist19 ance provided under a housing assistance supply

20 program that may be used for administrative, plan21 ning, and development costs of affordable housing.

22 (4) REQUIRED NUMBER OF UNITS FOR EX23 TREMELY LOW-, VERY LOW-, AND LOW-INCOME FAM24 ILIES.—Of the number of dwelling units in housing

25 assisted under this subsection under the housing
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1 supply assistance program of an eligible public entity

2 in a fiscal year—

3 (A) the percentage of such number that

4 are subject to binding restrictions ensuring af5 fordability to, and priority for occupancy by, ex6 tremely low-income families shall not be less

7 than the percentage of low-income renter fami8 lies with housing problems in the jurisdiction of

9 the eligible public entity that are extremely low10 income families, as determined based on the

11 most recent information available from the Sec12 retary;

13 (B) the percentage of such number that

14 are subject to binding restrictions ensuring af15 fordability to, and priority for occupancy by,

16 very low-income families shall not be less than

17 the percentage of low-income renter families

18 with housing problems in the jurisdiction of the

19 eligible public entity that are very low-income

20 families (but not extremely low-income fami21 lies), as determined based on the most recent

22 information available from the Secretary; and

23 (C) the percentage of such number that

24 are subject to binding restrictions ensuring af25 fordability to, and priority for occupancy by,
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1 low-income families shall not be less than the

2 percentage of low-income renter families with

3 housing problems in the jurisdiction of the eligi4 ble public entity that are low-income families

5 (but not very low-income families), as deter6 mined based on the most recent information

7 available from the Secretary.

8 (5) REQUIRED PROPORTION OF RENTAL UNITS

9 TO HOMEOWNERSHIP UNITS.—Of the number of

10 dwelling units in housing assisted under this sub11 section under a housing supply assistance program

12 of an eligible public entity in a fiscal year, the per13 centage of such number that are units available for

14 rental shall not be less than the percentage that is

15 10 percent less than the percentage of low-income

16 families with housing problems in the jurisdiction of

17 the entity that are renters, as determined based on

18 the most recent information available to the Sec19 retary.

20 (6) REQUIRED PROPORTION OF ASSISTED

21 UNITS IN POVERTY AREAS.—Of the number of dwell22 ing units in housing assisted under this subsection

23 under a housing supply assistance program of an eli24 gible public entity in a fiscal year, the percentage of

25 such number that are located in poverty areas shall
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1 not be less than the percentage of the number of

2 low-income families residing within the jurisdiction

3 of the entity that reside within poverty areas, as de4 termined based on the most recent information avail5 able to the Secretary.

6 (7) ALLOCATION FOR RURAL AREAS.—Of the

7 grant amounts available for a fiscal year for a public

8 entity that is a State to carry out a housing supply

9 assistance program under this section, the State

10 shall allocate an amount for each rural area based

11 on a formula, determined by the Secretary, that de12 termines the need for such assistance in each such

13 area based on the number of extremely low- and

14 very low-income families residing in the area. The

15 weight given under the formula to the number of ex16 tremely low-income families residing in a rural area

17 shall be twice the weight given under the formula to

18 the number of such very-low income families.

19 (c) ELIGIBLE HOUSING REPAIR ACTIVITIES.—

20 (1) IN GENERAL.—A housing supply assistance

21 program may provide assistance for emergency re22 pairs of housing, abatement of lead-based paint, and

23 removal of such other hazards in housing as the Sec24 retary shall provide.
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1 (2) LIMITATION ON HOUSING ASSISTED.—As2 sistance may be provided under paragraph (1) only

3 if—

4 (A) the housing assisted is subject to bind5 ing restrictions sufficient to ensure that, for the

6 entire useful life of the housing, the housing is

7 used as affordable housing; or

8 (B) the activities conducted with such as9 sistance are conducted on behalf of residents of

10 the housing who are very low-income families to

11 enable such families to remain in the housing.

12 (d) ELIGIBLE HOUSING SERVICES ACTIVITIES.—

13 (1) IN GENERAL.—A housing supply assistance

14 program may provide assistance for carrying out

15 services relating to the development of decent and

16 affordable housing, eliminating segregation in the

17 availability and occupancy of such housing, and im18 proving the capacity of moderate-income families to

19 obtain and maintain such housing.

20 (2) ELIGIBLE ACTIVITIES.—Activities eligible

21 for assistance under this subsection shall include—

22 (A) fair housing enforcement activities;

23 (B) counseling relating to housing and

24 neighborhood choice;
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1 (C) counseling regarding homeownership

2 and tenant affairs and responsibilities;

3 (D) support services for nonprofit organi4 zations engaged in developing or managing af5 fordable housing;

6 (E) employment training for moderate-in7 come families;

8 (F) development of the capacity of commu9 nity housing development organizations and

10 tenant organizations;

11 (G) supportive services for moderate-in12 come residents of affordable housing (including

13 day care and job counseling);

14 (H) technical assistance to organizations in

15 developing proposals for assistance under the

16 housing supply assistance program; and

17 (I) other services as the Secretary may

18 provide.

19 (3) LIMITATION ON AVAILABILITY OF

20 AMOUNTS.—The Secretary shall establish, by regula21 tion, limitations on the portion of grant amounts for

22 a fiscal year received by an eligible public entity and

23 available for carrying out a housing supply assist24 ance program that may be used for services under

25 this subsection. The limitations shall be expressed in
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1 terms of percentages of the grant amounts available

2 for carrying out the housing supply assistance pro3 gram, none of which may exceed 15 percent and

4 which shall progressively decrease as such amount

5 increases.

6 (e) PROHIBITED USES.—Amounts available for car7 rying out a housing assistance supply program may not

8 be used—

9 (1) to provide tenant-based assistance for the

10 rental of a dwelling unit, including providing re11 placement units for public housing to meet the re12 quirements under section 18 of the United States

13 Housing Act of 1937;

14 (2) provide non-Federal matching contributions

15 required under any other Federal program;

16 (3) provide assistance authorized under section

17 9 of the United States Housing Act of 1937;

18 (4) carry out activities authorized under section

19 14 of the United States Housing Act of 1937; or

20 (5) provide assistance to eligible low-income

21 housing under the provisions of the Emergency Low

22 Income Housing Preservation Act of 1987 or the

23 Low-Income Housing Preservation and Resident

24 Homeownership Act of 1990, except in the case of

25 such assistance in connection with acquisition of the
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1 housing by a priority purchaser (as such term is de2 fined in section 231(a) of the Low-Income Housing

3 Preservation and Resident Homeownership Act of

4 1990).

5 (f) ECONOMIC OPPORTUNITIES FOR LOW-INCOME

6 PERSONS.—Amounts available to carry out a housing sup7 ply assistance program shall be considered the provision

8 of housing assistance for purposes of section 3 of the

9 Housing and Urban Development Act of 1968. The Sec10 retary shall issue regulations to carry out the provisions

11 of such section with respect to assistance provided under

12 housing supply assistance programs.

13 (g) ELIGIBLE HOUSING PROVIDERS.—Assistance for

14 activities under this section may be provided to any entity

15 capable, in the determination of the eligible public entity

16 providing the assistance, to carry out such activities, in17 cluding nonprofit organizations, cooperative housing orga18 nizations, public housing agencies and other public agen19 cies, and for-profit housing providers.

20 (h) USE OF ASSISTANCE UNDER OTHER PRO21 GRAMS.—Except as provided in subsection (e), amounts

22 available to carry out a housing supply assistance program

23 may be used for activities under other Federal, State, and

24 local programs to the extent the use of such assistance

25 complies with the requirements under this title.
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1 SEC. 205. AFFORDABILITY.

2 (a) IN GENERAL.—The Secretary shall issue regula3 tions establishing requirements that must be met for hous4 ing to be considered affordable housing for purposes of

5 this title.

6 (b) CONTENT.—The regulations under subsection (a)

7 shall include requirements regarding—

8 (1) in the case of rental dwelling units, the

9 maximum monthly rents for the units, which shall

10 take into consideration the fair market rentals for

11 the relevant area and, if applicable, the income

12 group for which the unit is to be affordable; and

13 (2) in the case of homeownership dwelling

14 units—

15 (A) the maximum purchase price of the

16 units;

17 (B) resale restrictions appropriate—

18 (i) to allow for subsequent purchase of

19 the property only by an eligible family at

20 a price that will—

21 (I) provide the owner with a fair

22 return on investment, including any

23 improvements; and

24 (II) ensure that the housing will

25 remain affordable; or
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1 (ii) to recapture from any net pro2 ceeds of the sale the amount necessary to

3 avoid any unreasonable profit to the seller

4 and make such amount available for use

5 under the program; and

6 (3) in the case of multifamily housing—

7 (A) the number or percentage of units in

8 the housing that comply with the applicable re9 quirements established under paragraph (1) or

10 (2); and

11 (B) the number or percentage of units in

12 the housing available for occupancy only by eli13 gible families.

14 (c) STANDARDS FOR INCOME GROUPS.—The Sec15 retary shall issue regulations establishing requirements

16 that must be met for a dwelling unit to be considered af17 fordable for purposes of this title for each of the income

18 groups.

19 SEC. 206. ELIGIBLE PUBLIC ENTITIES.

20 For purposes of this title, the term ‘‘eligible public

21 entity’’ means, with respect to a fiscal year, a public entity

22 that meets the following requirements:

23 (1) SUBMISSION OF CHAS.—The public entity

24 has submitted to the Secretary a comprehensive

25 housing affordability strategy under section 105 of
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1 the Cranston-Gonzalez National Affordable Housing

2 Act for such year that has been approved under such

3 section.

4 (2) DESIGNATION OF RECIPIENT AGENCY.—The

5 public entity has designated or established a public

6 agency of the government of the public entity for

7 purposes of carrying out this title for the public en8 tity, which such agency—

9 (A) is governed by a board of directors or

10 other similar governing body whose members—

11 (i) are appointed by the chief execu12 tive officer of the government for the pub13 lic entity, except that not less than 50 per14 cent of the members shall be individuals

15 who were recommended for membership by

16 individuals and entities other than the

17 agency referred to in the matter preceding

18 subparagraph (A) or any official of the

19 government for the public entity or of such

20 agency;

21 (ii) include—

22 (I) not less than 1 individual who

23 is homeless at the time of such ap24 pointment or previously was homeless;
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1 (II) not less than 1 individual

2 who represents a nonprofit organiza3 tion significantly engaged in low-in4 come housing advocacy activities; and

5 (III) not less than 1 individual

6 who represents a nonprofit organiza7 tion significantly engaged in providing

8 housing assistance and supportive

9 services to low-income and homeless

10 families; and

11 (iii) in the case of an agency for a

12 public entity that is a State, complies with

13 the requirements for geographic distribu14 tion that the Secretary shall establish to

15 ensure that the various geographic areas of

16 the State are fairly represented in the

17 membership of the governing body; and

18 (B) complies with requirements that the

19 Secretary shall establish to ensure that the

20 agency is capable of carrying out activities

21 under this title for the public entity, including

22 receiving and distributing the grant for the

23 public entity, conducting activities under sec24 tions 203 and 204 or selecting subgrantee orga25 nizations and entities to undertake such activi-
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1 ties, and monitoring such activities in accord2 ance with section 212(a).

3 (3) PLAN.—The public entity has submitted to

4 the Secretary a Trust Fund grant plan in accord5 ance with section 208 for the fiscal year that has

6 been approved by the Secretary under such section.

7 (4) COMPLIANCE WITH PROGRAM REQUIRE8 MENTS.—The public entity has entered into an

9 agreement with the Secretary, as the Secretary may

10 require, to comply with the provisions of this title

11 and the Trust Fund grant plan for such year for the

12 entity that is approved by the Secretary.

13 SEC. 207. REQUIREMENTS OF ELIGIBLE PUBLIC ENTITIES.

14 (a) CITIZEN PARTICIPATION PROCEDURES.—Each

15 eligible public entity that receives grant amounts for a fis16 cal year shall establish procedures, in accordance with reg17 ulations that the Secretary shall issue to carry out this

18 subsection, to ensure the participation of citizens in deter19 minations relating to the programs for assistance under

20 sections 203 and 204, subject to the following require21 ments:

22 (1) COVERED ISSUES.—The citizen participa23 tion procedures under this subsection shall apply to

24 any determinations made for the eligible public en25 tity regarding the following issues:
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1 (A) Identifying the housing needs of the

2 entity and priorities for use of grant amounts

3 for addressing such needs.

4 (B) Developing requirements and proce5 dures for expending grant amounts.

6 (C) Reviewing proposals for assistance

7 with grant amounts and determining the alloca8 tion of grant amounts among such proposals.

9 (D) Monitoring and reviewing the perform10 ance of the eligible public entity in complying

11 with the Trust Fund grant plan of the entity.

12 (E) Recommending and developing im13 provements in the operations of the eligible

14 public entity to implement the Trust Fund

15 grant plan of the entity.

16 (F) Amending or changing the Trust Fund

17 grant plan for the entity.

18 (G) Submitting a performance review

19 under section 212(a) for the entity.

20 (H) Establishing a system of local pref21 erences under section 203(d)(2) for housing

22 costs assistance.

23 (I) Such other issues as the Secretary may

24 provide.
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1 (2) PROCEDURE.—The citizen participation re2 quirements under this subsection for an eligible pub3 lic entity shall provide for—

4 (A) public hearings to obtain the views of

5 citizens, public agencies, and other interested

6 parties regarding significant actions referred to

7 in paragraph (1), which shall be conducted a

8 reasonable period of time before any such ac9 tion is taken;

10 (B) publication of each performance review

11 under section 212(a) and any substantial

12 amendment to or change in the Trust Fund

13 grant plan for the entity; and

14 (C) a procedure for submission of com15 plaints and grievances regarding the operation

16 of the programs of the public entity assisted

17 under this title and for a written response by

18 the public entity to each such grievance and

19 complaint not later than 15 days after submis20 sion.

21 (b) HOUSING QUALITY STANDARDS AND ENFORCE22 MENT.—

23 (1) SECTION 8 STANDARDS.—Except as pro24 vided in paragraph (2), each dwelling unit assisted

25 with grant amounts shall be maintained in the con-
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1 dition that is required under the housing quality

2 standards established under section 8 of the United

3 States Housing Act of 1937 with respect to dwelling

4 units assisted under such section.

5 (2) ESTABLISHMENT OF LOCAL STANDARDS.—

6 Each dwelling unit assisted with grant amounts pro7 vided to an eligible public entity whose jurisdiction

8 is subject to a housing code or quality standards

9 that have been determined by the Secretary to pro10 vide protection for the health and safety of housing

11 residents equivalent to or greater than the protection

12 provided by the standards applicable to housing as13 sisted under section 8 of the United States Housing

14 Act of 1937 shall be maintained in compliance with

15 such local code or standards.

16 (3) ENFORCEMENT.—Each eligible public entity

17 that receives grant amounts for a fiscal year shall

18 have in effect procedures, in accordance with regula19 tions that the Secretary shall issue to carry out this

20 paragraph, to ensure that each dwelling unit of

21 housing assisted with grant amounts is maintained

22 in accordance with the housing code or quality

23 standards applicable under paragraph (1) or (2).

24 Such procedures may include providing for the vol25 untary transfer of housing that violates such code or
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1 standards in a significant manner to an owner who

2 will remedy such violations and maintain the hous3 ing in accordance with such code or standards.

4 (c) PREVENTION OF DISPLACEMENT.—

5 (1) IN GENERAL.—Each eligible public entity

6 that receives grant amounts for a fiscal year shall

7 establish standards and procedures, in accordance

8 with regulations established by the Secretary, to

9 minimize the displacement of moderate-income fami10 lies by activities conducted in whole or in part with

11 grant amounts.

12 (2) RELOCATION ASSISTANCE.—The standards

13 and procedures shall ensure that any such family in14 voluntarily displaced by such activities—

15 (A) is provided assistance under the hous16 ing costs assistance program, if such family is

17 an eligible family; and

18 (B) is provided assistance in obtaining and

19 relocating to a reasonable and suitable alter20 native dwelling unit of decent and affordable

21 housing.

22 (d) PROHIBITION OF ASSISTANCE BY STATES FOR

23 ENTITLEMENT COMMUNITIES.—An eligible public entity

24 that is a State that receives grant amounts for a fiscal

25 year may not use any of such amounts for carrying out
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1 eligible activities under section 202(a) in entitlement com2 munities within the State.

3 (e) ENFORCEMENT OF REQUIREMENTS.—Each eligi4 ble public entity that receives grant amounts for a fiscal

5 year shall have in effect procedures, in accordance with

6 regulations that the Secretary shall issue to carry out this

7 subsection, to ensure that any grant amounts provided to

8 any subgrantee to carry out a housing costs assistance

9 program or a housing supply assistance program are used

10 in accordance with the requirements of this title.

11 SEC. 208. TRUST FUND GRANT PLANS.

12 (a) REQUIREMENTS FOR APPROVAL.—A Trust Fund

13 grant plan for a public entity for a fiscal year is in accord14 ance with this section only if the plan complies with follow15 ing requirements:

16 (1) SUBMISSION.—The plan is submitted not

17 later than 90 days before the commencement of the

18 fiscal year by the agency of the public entity des19 ignated under section 206(2).

20 (2) HOUSING COSTS ASSISTANCE PROGRAM.—

21 The plan—

22 (A) provides for using grant amounts to

23 the extent provided in section 202(b)(1)(A) to

24 carry out a housing costs assistance program in
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1 accordance with section 203 within the jurisdic2 tion of the public entity;

3 (B) describes how assistance will be pro4 vided under the program to assist minority

5 families to move to areas without high con6 centrations of persons living in poverty;

7 (C) describes how families receiving assist8 ance under the program will be provided coun9 seling in accordance with section 203(g); and

10 (D) describes the operation of the program

11 and identifies and describes the entities admin12 istrating the program.

13 (3) HOUSING SUPPLY ASSISTANCE PROGRAM.—

14 The plan—

15 (A) provides for using grant amounts to

16 the extent provided in section 202(b)(1)(B) to

17 carry out a housing supply assistance program

18 in accordance with section 204 within the juris19 diction of the public entity;

20 (B) describes, for each income group, the

21 shortage of decent housing in the jurisdiction of

22 the public entity that is affordable for the in23 come group;

24 (C) describes how, and the extent to which,

25 the program will remedy such shortages;
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1 (D) describes the priorities for the types of

2 housing to be provided under the program, the

3 areas for locating housing to be provided under

4 the program, and the families to be offered oc5 cupancy in such housing;

6 (E) describes how the program will comply

7 with the requirements under section 207(c) re8 garding avoiding displacement and providing

9 assistance for families involuntarily displaced;

10 (F) describes the provisions under the pro11 gram to comply with section 207(b) regarding

12 ensuring housing quality; and

13 (G) describes the operation of the program

14 and identifies and describes the entities admin15 istrating the program.

16 (4) CERTIFICATION OF PREVIOUS COMPLI17 ANCE.—With respect to fiscal year 1996 and subse18 quent fiscal years, the plan contains a certification

19 that, for the most recent fiscal year for which the el20 igible public entity received a grant under this title,

21 the entity complied with the requirements under this

22 title.

23 (5) CITIZEN PARTICIPATION IN PREPARA24 TION.—The public entity has, in preparing the

25 plan—
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1 (A) made available to citizens, public agen2 cies, and other interested parties reasonable

3 and timely access to meetings, information, and

4 records relating to any amounts the entity has

5 received under this title in previous years, the

6 amount the entity expects to receive for the fis7 cal year under this title, and the proposed uses

8 of the grant amounts;

9 (B) published the proposed plan in a man10 ner that, in the determination of the Secretary,

11 affords affected citizens, public agencies, and

12 other interested parties a reasonable oppor13 tunity to examine its content and to submit

14 comments on the proposed plan;

15 (C) held 1 or more public hearings to ob16 tain the views of citizens, public agencies, and

17 other interested parties on the needs of the

18 public entity with respect to eligible families

19 and the supply of affordable housing;

20 (D) considered any comments or views of

21 citizens in preparing the final plan for submis22 sion under this section and attached a summary

23 of such comments or views to the plan submit24 ted; and
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1 (E) made the plan submitted available to

2 the public.

3 (6) ONGOING CITIZEN PARTICIPATION.—The

4 plan describes the procedures for ongoing citizen

5 participation required under section 207(a).

6 (7) HOUSING QUALITY ENFORCEMENT MEAS7 URES.—The plan describes the procedures developed

8 to comply with the requirement under section

9 207(b)(3) to enforce the housing code or quality

10 standards applicable to housing assisted under this

11 title.

12 (8) OTHER.—The plan contains any other in13 formation that the Secretary considers appropriate

14 to carry out the purposes of this title.

15 (b) REVIEW.—

16 (1) IN GENERAL.—Upon the submission of a

17 Trust Fund grant plan under this section, the Sec18 retary shall review the plan to determine whether it

19 is in accordance with this section. Not later than 90

20 days after receipt by the Secretary, the Secretary

21 shall approve the plan unless the Secretary deter22 mines that it has not been submitted in accordance

23 with this section, in which case the Secretary shall

24 disapprove the plan.
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1 (2) NOTIFICATION.—The Secretary shall imme2 diately notify the public entity submitting a plan, in

3 writing, of any approval or disapproval of the plan.

4 A plan shall be considered to have been approved

5 under this subsection for purposes of section 206(3)

6 unless the Secretary provides notice under this para7 graph of disapproval during the period referred to

8 paragraph (1) of this subsection.

9 (3) DISAPPROVAL.—In the case of a plan dis10 approved by the Secretary, the Secretary shall in11 clude with the notification of disapproval a written

12 description of the reasons for the disapproval identi13 fying the specific deficiencies of the plan.

14 (4) AMENDMENTS AND RESUBMISSION.—Any

15 public entity whose plan has been disapproved may

16 amend or resubmit the plan during the 60-day pe17 riod beginning upon notice of disapproval. The Sec18 retary shall review, and approve or disapprove, a

19 plan amended or resubmitted under this paragraph

20 not later than 60 days after receipt of the resubmit21 ted plan, and shall immediately notify the public en22 tity amending or resubmitting the plan, in writing,

23 of such approval or disapproval. A plan resubmitted

24 or amended under this paragraph shall be consid25 ered to have been approved under this subsection for
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1 purposes of section 206(3) unless the Secretary pro2 vides notice under this paragraph of disapproval

3 during such period.

4 (c) UPDATED PLANS.—A public entity may, for any

5 fiscal year, submit to the Secretary a Trust Fund grant

6 plan that was submitted by the public entity for a preced7 ing fiscal year and approved under this section by the Sec8 retary, together with written changes or amendments to

9 such plan. Such plan, together with such changes and

10 amendments, shall be considered for purposes of this title

11 to be the Trust Fund grant plan submitted by such public

12 entity for the fiscal year.

13 SEC. 209. ALLOCATION OF TRUST FUND AMOUNTS FOR

14 STATES, ENTITLEMENT COMMUNITIES, AND

15 INDIAN TRIBES.

16 (a) SET ASIDE FOR HUD ADMINISTRATIVE ACTIVI17 TIES.—For each fiscal year, the Secretary shall reserve

18 for activities under section 213 an amount equal to 1 per19 cent of the total amounts available for the fiscal year to

20 carry out this title.

21 (b) ENTITLEMENT COMMUNITIES.—

22 (1) IN GENERAL.—In each fiscal year, the Sec23 retary shall allocate a portion of the total Fund

24 grant amounts (as such term is defined in section

25 217) for the fiscal year for grants under this title
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1 for eligible public entities that are entitlement com2 munities.

3 (2) AMOUNT.—For a fiscal year, the amount al4 located for entitlement communities pursuant to

5 paragraph (1) shall bear the same ratio to the total

6 Fund grant amounts for the fiscal year that—

7 (A) the number of low-income families with

8 a housing problem who reside in an entitlement

9 community that is an eligible public entity,

10 bears to

11 (B) the total number (for all States) of

12 low-income families with a housing problem.

13 (c) INDIAN TRIBES.—

14 (1) IN GENERAL.—In each fiscal year, the Sec15 retary shall allocate a portion of the total Fund

16 grant amounts for the fiscal year for eligible public

17 entities that are Indian tribes.

18 (2) AMOUNT.—For a fiscal year, the amount al19 located for Indian tribes pursuant to paragraph (1)

20 shall bear the same ratio to the total Fund grant

21 amounts for the fiscal year that—

22 (A) the number of low-income families

23 who—

24 (i) have a housing problem,
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1 (ii) have a head of household who is

2 a member of an Indian tribe, and

3 (iii) reside on Indian land,

4 bears to

5 (B) the total number (for all States) of

6 low-income families with a housing problem.

7 (d) STATES.—

8 (1) IN GENERAL.—In each fiscal year, the Sec9 retary shall allocate a portion of the total Fund

10 grant amounts for the fiscal year for eligible public

11 entities that are States.

12 (2) AMOUNT.—For a fiscal year, the amount al13 located for States pursuant to paragraph (1) shall

14 be equal to the difference between—

15 (A) the total Fund grant amounts for the

16 fiscal year; and

17 (B) the sum of the portions for allocation

18 for the fiscal year for entitlement communities

19 and Indian tribes, as determined under sub20 sections (b) and (c), respectively.

21 (e) SOURCE OF INFORMATION REGARDING FAMILIES

22 WITH A HOUSING PROBLEM.—In determining the ratios

23 under subsections (b)(2) and (c)(2), the Secretary shall

24 use the most recent information regarding the number of

25 families with housing problems tabulated by the Bureau
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1 of the Census, Department of Commerce, pursuant to in2 formation compiled for use in preparing the comprehensive

3 housing affordability strategies submitted by participating

4 jurisdictions under section 105 of the Cranston-Gonzalez

5 National Affordable Housing Act.

6 SEC. 210. GRANT ALLOTMENTS.

7 (a) IN GENERAL.—The amount of the allotment for

8 an eligible public entity for a fiscal year shall be deter9 mined as follows:

10 (1) ENTITLEMENT COMMUNITIES.—For an eli11 gible public entity that is an entitlement community,

12 the amount of the allotment shall be the sum of the

13 following amounts:

14 (A) HIGH HOUSING COSTS.—The product

15 of—

16 (i) 67 percent of the amount of the al17 location under section 209(b) for the fiscal

18 year for entitlement communities, and

19 (ii) the high housing cost ratio under

20 subsection (b)(1) for the entitlement com21 munity,

22 as adjusted by the Secretary in accordance with

23 subsection (c).

24 (B) AFFORDABLE HOUSING SUPPLY.—The

25 product of—
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1 (i) 33 percent of the amount of the al2 location under section 209(b) for the fiscal

3 year for entitlement communities; and

4 (ii) the affordable housing supply mul5 tiplier under subsection (d) for the entitle6 ment community.

7 (2) INDIAN TRIBES.—For an eligible public en8 tity that is an Indian tribe, the amount of the allot9 ment shall be the sum of the following amounts:

10 (A) HIGH HOUSING COSTS.—The product

11 of—

12 (i) 67 percent of the amount of the al13 location under section 209(c) for the fiscal

14 year for Indian tribes, and

15 (ii) the high housing cost ratio under

16 subsection (b)(2) for the Indian tribe,

17 as adjusted by the Secretary in accordance with

18 subsection (c).

19 (B) AFFORDABLE HOUSING SUPPLY.—The

20 product of—

21 (i) 33 percent of the amount of the al22 location under section 209(c) for the fiscal

23 year for Indian tribes; and
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1 (ii) the affordable housing supply mul2 tiplier under subsection (d) for the Indian

3 tribe.

4 (3) STATES.—For an eligible public entity that

5 is a State, the amount of the allotment shall be the

6 sum of the following amounts:

7 (A) HIGH HOUSING COSTS.—The product

8 of—

9 (i) 67 percent of the amount of the al10 location under section 209(d) for the fiscal

11 year for States, and

12 (ii) the high housing cost ratio under

13 subsection (b)(3) for the State,

14 as adjusted by the Secretary in accordance with

15 subsection (c).

16 (B) AFFORDABLE HOUSING SUPPLY.—The

17 product of—

18 (i) 33 percent of the amount of the al19 location under section 209(d) for the fiscal

20 year for States; and

21 (ii) the affordable housing supply mul22 tiplier under subsection (d) for the State.

23 (b) HIGH HOUSING COST RATIO.—The ratio under

24 this subsection for an eligible public entity shall be—
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1 (1) in the case of an entitlement community,

2 the ratio of—

3 (A) the number of families residing in the

4 entitlement community who pay more than 50

5 percent of the gross family income for housing

6 costs, to

7 (B) the total number of families residing in

8 entitlement communities who pay more than 50

9 percent of the gross family income for housing

10 costs;

11 (2) in the case of an Indian tribe, the ratio of—

12 (A) number of families who—

13 (i) pay more than 50 percent of the

14 gross family income for housing costs,

15 (ii) have a head of household who is

16 a member of the tribe, and

17 (iii) reside on Indian land of the tribe,

18 to

19 (B) the total number of families who—

20 (i) pay more than 50 percent of the

21 gross family income for housing costs,

22 (ii) have a head of household who is

23 a member of an Indian tribe, and

24 (iii) reside on Indian land; and

25 (3) in the case of a State, the ratio of—
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1 (A) the number of families residing in the

2 State (but not within an entitlement commu3 nity) who pay more than 50 percent of the

4 gross family income for housing costs, to

5 (B) the total number of families residing in

6 all States (but not within an entitlement com7 munity) who pay more than 50 percent of the

8 gross family income for housing costs.

9 (c) ADJUSTMENT FOR HIGH HOUSING COSTS.—Ad10 justment of an amount for an eligible public entity in ac11 cordance with this subsection shall be an adjustment to

12 the extent necessary to reflect the cost of affordable hous13 ing in the eligible public entity relative to the cost of af14 fordable housing in other eligible entities, as determined

15 by the Secretary. Any adjustment of amounts for a fiscal

16 year in accordance with this subsection shall be made in

17 such amounts so that the sum of the allotments for all

18 eligible public entities resulting from paragraphs (1)(A),

19 (2)(A), and (3)(A) of subsection (a) is equal to 67 percent

20 of the total Fund grant amounts for the fiscal year.

21 (d) AFFORDABLE HOUSING SUPPLY MULTIPLIER.—

22 (1) IN GENERAL.—The Secretary shall, by reg23 ulation, establish a formula to determine, for each

24 eligible public entity, a number (for purposes of this

25 section referred to as the ‘‘affordable housing supply
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1 multiplier’’) that reflects the share, for each eligible

2 public entity, of the total need in all States for addi3 tional units of decent housing that is permanently

4 affordable for extremely low-, very low-, and low-in5 come families of different size relative to the share

6 of such need for other eligible public entities, as ad7 justed to take into consideration prevailing levels of

8 construction and rehabilitation costs.

9 (2) FACTORS.—The formula established pursu10 ant to paragraph (1) shall be based on objective

11 measures of inadequate housing supply, including—

12 (A) population growth;

13 (B) costs of acquiring, rehabilitating, and

14 constructing affordable housing;

15 (C) relative fiscal incapacity to carry out

16 activities under section 204 without Federal as17 sistance; and

18 (D) special housing needs.

19 (e) DE MINIMIS RULE.—Notwithstanding subsection

20 (a)—

21 (1) if the allotment determined under sub22 section (a)(1) for an entitlement community is less

23 than $750,000, the amount of the allotment for the

24 entitlement community shall instead be $750,000,
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1 and the allotment for each other entitlement commu2 nity shall be adjusted on a pro rata basis;

3 (2) if the allotment determined under sub4 section (a)(2) for an Indian tribe is less than

5 $500,000, the amount of the allotment for the In6 dian tribe shall instead be $500,000, and the allot7 ment for each other Indian tribe shall be adjusted

8 on a pro rata basis; and

9 (3) if the allotment determined under sub10 section (a)(3) for a State is less than $2,000,000,

11 the amount of the allotment for the State shall in12 stead be $2,000,000, and the allotment for each

13 other State shall be adjusted on a pro rata basis.

14 SEC. 211. MAINTENANCE OF STATE AND LOCAL EFFORT.

15 Assistance provided with grant amounts may not be

16 used to replace other public funds previously used, or des17 ignated for use, for activities of the type eligible to be as18 sisted under this title.

19 SEC. 212. COMPLIANCE.

20 (a) MONITORING AND PERFORMANCE REPORTS.—

21 (1) IN GENERAL.—Each eligible public entity

22 shall monitor the programs for assistance under this

23 title carried out by the entity and activities assisted

24 under such programs, and annually conduct a review

25 of the progress made in carrying out the Trust
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1 Fund grant plan for the entity. Each eligible public

2 entity shall annually submit a report on such mon3 itoring and review, in the form established by the

4 Secretary, which shall include information describing

5 the number and types of families served, including

6 the number of families in each income group as7 sisted under this title and the racial and ethnic sta8 tus of persons assisted.

9 (2) SUBMISSION.—The Secretary shall establish

10 dates for submission of reports under this subsection

11 and review the reports and make such recommenda12 tions as the Secretary considers appropriate to carry

13 out the purposes of this title.

14 (3) FAILURE TO REPORT.—If an eligible public

15 entity fails to submit a report to the Secretary in a

16 timely manner or the Secretary determines that the

17 report is incomplete, assistance under this title to

18 the entity may be—

19 (A) withheld until a report satisfactory to

20 the Secretary is submitted; or

21 (B) withdrawn and credited to the Fund

22 for reallocation under section 209 of this title

23 in the succeeding fiscal year, but only if the

24 Secretary determines on the record, after notice

25 to the entity and an opportunity for a hearing,
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1 that the entity will not submit a satisfactory re2 port.

3 (b) PERFORMANCE REVIEW BY SECRETARY.—

4 (1) IN GENERAL.—The Secretary shall review

5 the activities of each eligible public entity that re6 ceives grant amounts for a fiscal year in a timely

7 manner after the conclusion of such fiscal year.

8 Such review shall include regular on-site visits in ac9 cordance with a schedule established by the Sec10 retary and assessment of—

11 (A) management of grant amounts pro12 vided to the eligible public entity;

13 (B) compliance by the eligible public entity

14 with the Trust Fund grant plan of the entity;

15 (C) the accuracy of eligible public entity in

16 preparing performance reports under subsection

17 (a); and

18 (D) efforts of the eligible public entity to

19 ensure that housing assisted with grant

20 amounts are maintained in compliance with

21 contractual agreements and the requirements

22 under this title.

23 (2) REPORT.—For each eligible public entity

24 that submits a performance review under subsection

25 (a), the Secretary shall submit to the entity a writ-
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1 ten preliminary report evaluating the performance

2 review. During the 30-day period beginning upon

3 submission of the report, the eligible public entity

4 may submit to the Secretary comments regarding

5 the report. After reviewing such comments but not

6 later than 30 days after the conclusion of such pe7 riod, the Secretary shall submit to the eligible public

8 entity a final report evaluating the performance re9 port of the entity. Upon submission to the eligible

10 public entity, the Secretary shall make the final re11 port, together with the comments submitted by the

12 entity, publicly available.

13 (c) REMEDIES FOR NONCOMPLIANCE WITH PRO14 GRAM REQUIREMENTS.—

15 (1) AVAILABLE REMEDIES.—If the Secretary

16 finds on the record, after reasonable notice and op17 portunity for hearing, that an eligible public entity

18 has failed to comply substantially with any provision

19 of this title, the Secretary, until the Secretary deter20 mines that there is no longer any such failure to

21 comply, shall take one or more of the following ac22 tions:

23 (A) Termination of the payment of assist24 ance under this title to the entity.
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1 (B) Reduction of the amount of assistance

2 under this title to the entity by an amount

3 equal to the amount of such payments which

4 were not expended in accordance with this title.

5 (C) Limitation of the availability of pay6 ments under this title to programs, projects, or

7 activities not affected by such failure to comply.

8 (D) Termination of the allotment for the

9 entity for subsequent fiscal years.

10 (2) CIVIL ACTION.—

11 (A) AVAILABILITY.—In lieu of, or in addi12 tion to, any action authorized by paragraph (1),

13 the Secretary may, if the Secretary has reason

14 to believe that an eligible public entity has

15 failed to comply substantially with any provision

16 of this title, refer the matter to the Attorney

17 General of the United States with a rec18 ommendation that an appropriate civil action be

19 commenced.

20 (B) RELIEF SOUGHT.—Upon such a refer21 ral the Attorney General may bring a civil ac22 tion in any United States district court having

23 venue thereof for such relief as may be appro24 priate, including an action to recover the

25 amount of the assistance provided under this
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1 title which was not expended in accordance with

2 this title, or for mandatory or injunctive relief.

3 (3) PETITION FOR REVIEW.—

4 (A) AVAILABILITY.—Any eligible public en5 tity which receives notice under paragraph (1)

6 of the termination, reduction, or limitation of

7 payments under this title may, within 60 days

8 after receiving such notice, file with the United

9 States Court of Appeals for the circuit in which

10 such State is located, or in the United States

11 Court of Appeals for the District of Columbia,

12 a petition for review of the Secretary’s action.

13 The petitioner shall forthwith transmit copies of

14 the petition to the Secretary and the Attorney

15 General of the United States, who shall rep16 resent the Secretary in the litigation.

17 (B) FILING OF RECORD.—The Secretary

18 shall file in the court a record of the proceeding

19 on which the Secretary based the action, as pro20 vided in section 2112 of title 28, United States

21 Code. No objection to the action of the Sec22 retary shall be considered by the court unless

23 such objection has been urged before the Sec24 retary.
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1 (C) RULES OF PROCEEDING.—The court

2 shall have jurisdiction to affirm or modify the

3 action of the Secretary or to set it aside in

4 whole or in part. The findings of fact by the

5 Secretary, if supported by substantial evidence

6 on the record considered as a whole, shall be

7 conclusive. The court may order additional evi8 dence to be taken by the Secretary, and to be

9 made part of the record. The Secretary may

10 modify findings of fact made by the Secretary,

11 or make new findings, by reason of the new evi12 dence so taken and filed with the court, and the

13 Secretary shall also file such modified or new

14 findings, which findings with respect to ques15 tions of fact shall be conclusive if supported by

16 substantial evidence on the record considered as

17 a whole, and shall also file a recommendation,

18 if any, for the modification or setting aside of

19 the original action of the Secretary.

20 (D) JURISDICTION.—Upon the filing of the

21 record with the court, the jurisdiction of the

22 court shall be exclusive and its judgment shall

23 be final, except that such judgment shall be

24 subject to review by the Supreme Court of the

25 United States upon writ of certiorari or certifi-
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1 cation as provided in section 1254 of title 28,

2 United State Code.

3 SEC. 213. ADMINISTRATIVE EXPENSES.

4 The Secretary may use the amounts reserved under

5 section 209(a) for a fiscal year for conducting perform6 ance reviews under section 212(b), for costs of the Hous7 ing Trust Fund Advisory Committee under section 213,

8 and for costs of administration relating to carrying out

9 this title.

10 SEC. 214. HOUSING TRUST FUND PROGRAM ADVISORY

11 COMMITTEE.

12 (a) ESTABLISHMENT.—There is hereby established

13 the Housing Trust Fund Advisory Committee (in this sec14 tion referred to as the ‘‘Committee’’).

15 (b) MEMBERSHIP.—

16 (1) APPOINTMENT.—The Committee shall be

17 composed of an odd number of members, which is

18 not less than 7 and not more than 15, who shall be

19 appointed by the Secretary of Housing and Urban

20 Development.

21 (2) EXPERIENCE.—Not less than a majority of

22 the members of the Committee shall be individuals

23 who—

24 (A) represent the interests of low-income

25 families; or
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1 (B) have experience in issues regarding

2 providing affordable housing for low-income

3 families and in working on such issues with

4 low-income families.

5 (c) CHAIRPERSON.—The Chairperson of the Commit6 tee shall be designated by the Secretary at the time of

7 appointment.

8 (d) TERMS.—

9 (1) IN GENERAL.—Each member of the Com10 mittee shall be appointed for a term of 4 years, ex11 cept as provided in paragraphs (2) and (3).

12 (2) TERMS OF INITIAL APPOINTEES.—As des13 ignated by the Secretary at the time of appointment,

14 of the members first appointed—

15 (A) not less than 1 shall be appointed for

16 a term of 1 year;

17 (B) not less than 2 shall be appointed for

18 terms of 2 years;

19 (C) not less than 2 shall be appointed for

20 terms of 3 years; and

21 (D) not less than 2 shall be appointed for

22 terms of 4 years.

23 (3) VACANCIES.—Any member appointed to fill

24 a vacancy occurring before the expiration of the

25 term for which the member’s predecessor was ap-
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1 pointed shall be appointed only for the remainder of

2 such term.

3 (e) DUTIES.—The Committee shall meet not less

4 than annually to—

5 (1) review the use by eligible public entities of

6 amounts provided under this title to the entities

7 from the Fund;

8 (2) make recommendations to the Adminis9 trator for changes in Federal policy to further the

10 purposes of this title; and

11 (3) consider such other matters relating to the

12 Fund and the housing costs assistance and housing

13 supply assistance programs under this title as the

14 Committee considers appropriate or requested by the

15 Secretary, including—

16 (A) reviewing the allocation of amounts

17 under section 209;

18 (B) periodically reviewing the formulas and

19 system for grant allotments under section 210,

20 including the establishment of the high housing

21 cost ratios, adjustments for high housing costs,

22 and affordable housing supply multipliers; and

23 (C) analyzing the adequacy of the grant al24 lotments determined under section 210 for ena-
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1 bling public entities to respond to the housing

2 needs in their jurisdictions.

3 (f) REIMBURSEMENT FOR EXPENSES.—Members of

4 the Committee shall serve without pay, but, to the extent

5 amounts are available pursuant to section 209, shall be

6 entitled to reimbursement for travel, subsistence, and

7 other necessary expenses incurred in the performance of

8 their duties.

9 (g) EXEMPTION FROM AUTOMATIC TERMINATION

10 PROVISIONS.—Section 14(a)(2)(B) of the Federal Advi11 sory Committee Act (5 U.S.C. App.; relating to the termi12 nation of advisory committees) shall not apply to the Com13 mittee.

14 SEC. 215. ADMINISTRATOR OF TRUST FUND IN DEPART15 MENT OF HOUSING AND URBAN DEVELOP16 MENT.

17 Section 4 of the Department of Housing and Urban

18 Development Act (42 U.S.C. 3533) is amended by adding

19 at the end the following new subsection:

20 ‘‘(g) ADMINISTRATOR OF TRUST FUND.—There shall

21 be in the Department an Administrator of the Housing

22 Trust Fund, who shall be appointed by the President by

23 and with the advice and consent of the Senate, who shall

24 be responsible, on behalf of the Secretary, for administer25 ing amounts in the Housing Trust Fund established under
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1 section 9512 of the Internal Revenue Code of 1986 in ac2 cordance with title II of the Federal Housing Trust Fund

3 Act of 1994.’’.

4 SEC. 216. DEFINITIONS.

5 For purposes of this title, the following definitions

6 shall apply:

7 (1) The term ‘‘adjusted income’’ means, with

8 respect to a family, the income of the family (from

9 all sources) which remains after excluding—

10 (A) $550 for each member of the family

11 residing in the household (other than the head

12 of the household or his spouse) who is under 18

13 years of age or who is 18 years of age or older

14 and is disabled or handicapped or a full-time

15 student;

16 (B) $400 for any elderly or disabled fam17 ily;

18 (C) the amount by which the aggregate of

19 the following expenses of the family exceeds 3

20 percent of annual family income: (i) medical ex21 penses for any family, and (ii) reasonable at22 tendant care and auxiliary apparatus expenses

23 for each handicapped member of any family, to

24 the extent necessary to enable any member of
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1 such family (including such handicapped mem2 ber) to be employed;

3 (D) child care expenses to the extent nec4 essary to enable another member of the family

5 to be employed or to further his or her edu6 cation;

7 (E) 10 percent of the earned income of the

8 family;

9 (F) any payment made by a member of the

10 family for the support and maintenance of any

11 child, spouse, or former spouse who does not re12 side in the household, except that the amount

13 excluded under this subparagraph shall not ex14 ceed the lesser of (i) the amount that such fam15 ily member has a legal obligation to pay; or (ii)

16 $550 for each individual for whom such pay17 ment is made;

18 (G) an amount equal to 50 percent of ag19 gregate amount of personal exemptions allowed

20 under section 151 of the Internal Revenue Code

21 of 1986 for the family; and

22 (H) excessive travel expenses, not to ex23 ceed $25 per family per week, for employment24 or education-related travel.
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1 (2) The term ‘‘affordable’’ means, with respect

2 to a particular income group, that a dwelling unit

3 complies with the requirements established under

4 section 205(c) for the income group.

5 (3) The term ‘‘affordable housing’’ means hous6 ing that complies with the requirements established

7 under section 205(a).

8 (4) The term ‘‘city’’ has the meaning given the

9 term in section 102(a) of the Housing and Commu10 nity Development Act of 1974.

11 (5) The term ‘‘community housing development

12 organization’’ has the meaning given the term in

13 section 104 of the Cranston-Gonzalez National Af14 fordable Housing Act.

15 (6) The term ‘‘decent’’ means, with respect to

16 housing, that the housing is maintained in the condi17 tion required by the housing quality standards estab18 lished under section 8 of the United States Housing

19 Act of 1937 with respect to dwelling units assisted

20 under such section or in compliance with the re21 quirement under paragraph (2) of section 207(b), if

22 applicable.

23 (7) The term ‘‘eligible family’’ means a house24 hold, including a single person, for whom the fair

25 market rental of a dwelling unit of the size appro-
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1 priate for the household and located in the jurisdic2 tion of the eligible public entity providing assistance

3 under this title for the family exceeds 30 percent of

4 the household’s adjusted monthly income.

5 (8) The term ‘‘eligible public entity’’ means a

6 public entity that meets the requirements of section

7 206.

8 (9) The term ‘‘entitlement community’’ means,

9 with respect to a fiscal year—

10 (A) any city within a metropolitan area

11 which is the central city of such area, as de12 fined and used by the Director of the Office of

13 Management and Budget;

14 (B) any other city, within a metropolitan

15 area that has a population of 100,000 or more;

16 (C) any county that is classified for the fis17 cal year as an urban county for purposes of the

18 community development block grant program

19 under title I of the Housing and Community

20 Development Act of 1974; or

21 (D) any consortia of units of general local

22 government that the Secretary determines has

23 sufficient authority and administrative capacity

24 to carry out the functions of an entitlement
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1 community under this title on behalf of its

2 member jurisdictions.

3 (10) The term ‘‘extremely low-income family’’

4 means a household whose income does not exceed 30

5 percent of the median income for the area, as deter6 mined by the Secretary with adjustments for smaller

7 and larger households.

8 (11) The term ‘‘fair market rental’’ means the

9 fair market rental for a dwelling unit established

10 under section 8 of the United States Housing Act of

11 1937.

12 (12) The term ‘‘family with housing problems’’

13 means a low-income family—

14 (A) that pays for housing costs an amount

15 in excess of 30 percent of the adjusted income

16 of the family; or

17 (B) lives in a dwelling unit that is over18 crowded or that lacks kitchen or plumbing fa19 cilities.

20 (13) The term ‘‘Fund’’ means the Housing

21 Trust Fund established by section 9512 of the Inter22 nal Revenue Code of 1986.

23 (14) The term ‘‘grant amounts’’ means

24 amounts provided under this title to an eligible pub25 lic entity.
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1 (15) The term ‘‘homeless individual’’ has the

2 meaning given the term in section 103 of the Stew3 art B. McKinney Homeless Assistance Act.

4 (16) The term ‘‘housing costs’’ means, with re5 spect to a family, the sum of the amounts paid by

6 the family, in rent or loan payments, for a dwelling

7 unit and essential housing utilities (not including

8 telephone).

9 (17) The term ‘‘income group’’ means the fol10 lowing groups:

11 (A) Extremely low-income families.

12 (B) Very low-income families.

13 (C) Low-income families.

14 (D) Moderate-income families.

15 (18) The term ‘‘Indian land’’ means any real

16 property owned by an Indian tribe, any real property

17 held in trust by the United States for an Indian or

18 Indian tribes, and any real property held by an In19 dian or Indian tribes that is subject to restrictions

20 on alienation imposed by the United States.

21 (19) The term ‘‘Indian tribe’’ has the meaning

22 given the term in section 102(a) of the Housing and

23 Community Development Act of 1974.

24 (20) The term ‘‘low-income family’’ means a

25 household whose income does not exceed 80 percent
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1 of the median income for the area, as determined by

2 the Secretary with adjustments for smaller and larg3 er households. The term includes a very low-income

4 family and an extremely low-income family.

5 (21) The term ‘‘moderate-income family’’

6 means a household whose income does not exceed 95

7 percent of the median income for the area, as deter8 mined by the Secretary with adjustments for smaller

9 and larger households. The term includes a low-in10 come family, a very low-income family, and an ex11 tremely low-income family.

12 (22) The term ‘‘poverty area’’ means a census

13 tract for which more than 10 percent of the house14 holds are extremely low-income families or have in15 comes that do not exceed the poverty line (as estab16 lished by the Office of Management and Budget and

17 revised periodically in accordance with section

18 673(2) of the Omnibus Budget Reconciliation Act of

19 1981) applicable to a family of the size involved.

20 (23) The term ‘‘public entity’’ means a State,

21 an entitlement community, or an Indian tribe.

22 (24) The term ‘‘rural area’’ means any area of

23 a State not included within an area designated as an

24 urbanized area by the Bureau of the Census of the

25 Department of Commerce.
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1 (25) The term ‘‘Secretary’’ means the Secretary

2 of Housing and Urban Development.

3 (26) The term ‘‘State’’ means the States of the

4 United States, the District of Columbia, the Com5 monwealth of Puerto Rico, the Commonwealth of the

6 Northern Mariana Islands, Guam, the Virgin Is7 lands, American Samoa, and any other territory or

8 possession of the United States.

9 (27) The term ‘‘total Fund grant amounts’’

10 means, with respect to a fiscal year, the difference

11 between the total amount from the Fund available

12 for the fiscal year to carry out this title and the

13 amount reserved pursuant to section 208(a).

14 (28) The term ‘‘Trust Fund grant plan’’

15 means, with respect to a fiscal year, a plan under

16 section 208 for the fiscal year or an update under

17 section 208(c) for the fiscal year of a plan under

18 such section submitted and approved for a previous

19 fiscal year.

20 (29) The term ‘‘unit of general local govern21 ment’’ any city, town, township, county, parish, vil22 lage, or other general purpose political subdivision of

23 a State.

24 (30) The term ‘‘very low-income family’’ means

25 a household whose income does not exceed 50 per-
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1 cent of the median income for the area, as deter2 mined by the Secretary with adjustments for smaller

3 and larger households. The term includes a very low4 income family.

5 SEC. 217. REGULATIONS.

6 The Secretary shall issue regulations to implement

7 the provisions of this title. The regulations shall be issued

8 after notice and opportunity for public comment in accord9 ance with the procedure under section 553 of title 5,

10 United States Code, applicable to substantive rules (not11 withstanding subsections (a)(2), (b)(B), and (d)(3) of

12 such section). The regulations shall become effective not

13 later than 180 days after the date of the enactment of

14 this Act.

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