I 

109TH CONGRESS 

2D SESSION H. R. 5137 

To assist first-time homebuyers to attain home ownership, and for other 

purposes. 

IN THE HOUSE OF REPRESENTATIVES 

APRIL 6, 2006 

Mr. HASTINGS of Florida introduced the following bill; which was referred to 

the Committee on Ways and Means, and in addition to the Committee 

on Financial Services, for a period to be subsequently determined by the 

Speaker, in each case for consideration of such provisions as fall within 

the jurisdiction of the committee concerned 

A BILL 

To assist first-time homebuyers to attain home ownership, 

and for other purposes. 

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, ETC. 

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

5 ‘‘Workforce Housing Act of 2006’’. 

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

7 this Act is as follows: 

Sec. 1. Short title, etc. 

Sec. 2. Congressional findings. 

Sec. 3. Mortgage down payment accounts. 


rwilkins on PROD1PC63 with BILLS
2 

•HR 5137 IH 

Sec. 4. Refundable credit for contributions to mortgage down payment accounts. 

Sec. 5. Amendments to American Dream Downpayment Initiative. 

Sec. 6. Production of affordable home ownership housing. 

1 SEC. 2. CONGRESSIONAL FINDINGS. 

2 The Congress finds that— 

3 (1) home prices have increased nationally an 

4 average 50 percent in the past five years; 

5 (2) in 2005, the median price for a home in the 

6 United States was $213,900, but only about 11 per7 cent of the adult population in the country could af8 ford to purchase such a home; 

9 (3) as a result of such prohibitive housing costs, 

10 employers often cannot maintain or retain a pool of 

11 qualified workers to fill jobs; 

12 (4) rising energy costs add to the burden that 

13 working families face when trying to purchase a 

14 home; 

15 (5) in 2005, families in the United States 

16 spent, on average, $4,300 on all energy costs (in17 cluding home energy bills and gasoline), which is ap18 proximately $600 more than they spent on such 

19 costs in 2004; 

20 (6) residential appliances, including heating and 

21 cooling equipment and water heaters, consume 90 

22 percent of all energy used in the residential sector 

23 in the United States; 


rwilkins on PROD1PC63 with BILLS
3 

•HR 5137 IH 

1 (7) homes and appliances that fail to use en2 ergy efficiently cost on average $500 per year to op3 erate and require over 30 percent more resources, 

4 further increasing the dependence on fossil fuels, 

5 and jeopardizing the energy security, of the United 

6 States; 

7 (8) within 15 years, renewable energy could be 

8 generating enough electricity to power 40,000,000 

9 homes and offset 70 days of oil imports into the 

10 United States; 

11 (9) when workers can use nearby mass transit, 

12 instead of driving to work, toxic greenhouse gases 

13 that contribute to global warming are reduced by 77 

14 pounds per person per year; and 

15 (10) to ensure there is an adequate supply of 

16 workforce housing and reduce some of the negative 

17 affects of high energy demands, it is critical to pro18 vide incentives for producing affordable homes that 

19 are close to transportation hubs and make the best 

20 use of efficient, renewable energy. 

21 SEC. 3. MORTGAGE DOWN PAYMENT ACCOUNTS. 

22 (a) IN GENERAL.—Part VII of subchapter B of chap23 ter 1 of the Internal Revenue Code of 1986 (relating to 

24 additional itemized deductions for individuals) is amended 


rwilkins on PROD1PC63 with BILLS
4 

•HR 5137 IH 

1 by redesignating section 224 as section 225 and by insert2 ing after section 223 the following new section: 

3 ‘‘SEC. 224. MORTGAGE DOWN PAYMENT ACCOUNTS. 

4 ‘‘(a) ALLOWANCE OF DEDUCTION.— 

5 ‘‘(1) IN GENERAL.—In the case of an indi6 vidual, there shall be allowed as a deduction for the 

7 taxable year an amount equal to the aggregate 

8 amount paid in cash during such taxable year by the 

9 taxpayer to the mortgage down payment account of 

10 the taxpayer. 

11 ‘‘(2) DOLLAR LIMITATION.— 

12 ‘‘(A) IN GENERAL.—The amount allowed 

13 as a deduction under subsection (a) with re14 spect to the taxpayer for any taxable year shall 

15 not exceed the applicable dollar limit. 

16 ‘‘(B) APPLICABLE DOLLAR LIMIT.— 

17 ‘‘(i) In the case of a taxpayer whose 

18 modified adjusted gross income for the tax19 able year does not exceed 125 percent of 

20 area median income, the applicable dollar 

21 limit shall be equal to $10,000. 

22 ‘‘(ii) In the case of any other tax23 payer, the applicable dollar limit shall be 

24 zero. 


rwilkins on PROD1PC63 with BILLS
5 

•HR 5137 IH 

1 ‘‘(C) AREA MEDIAN INCOME.—For pur2 poses of subparagraph (B)— 

3 ‘‘(i) IN GENERAL.—The area median 

4 income means the area median income de5 termined by the Secretary of Housing and 

6 Urban Development for the calendar year 

7 ending with or within the taxable year of 

8 the taxpayer. 

9 ‘‘(ii) TAXPAYER RESIDING IN MORE

10 THAN 1 AREA FOR THE TAXABLE YEAR.— 

11 In the case that the taxpayer had more 

12 than one principal residence during the 

13 taxable year, the area median income 

14 means the sum of the residing percentage 

15 of the area median income for each area in 

16 which the taxpayer had a principal resi17 dence during the taxable year. 

18 ‘‘(iii) RESIDING PERCENTAGE.—For 

19 purposes of clause (ii), the term ‘residing 

20 percentage’ means the ratio of the number 

21 of days that the taxpayer had his principal 

22 residence in an area bears to 365. 

23 ‘‘(D) MODIFIED ADJUSTED GROSS IN24 COME.—The term ‘modified adjusted gross in25 come’ means the adjusted gross income of the 


rwilkins on PROD1PC63 with BILLS
6 

•HR 5137 IH 

1 taxpayer for the taxable year increased by any 

2 amount excluded from gross income under sec3 tion 911, 931, or 933. 

4 ‘‘(3) COORDINATION WITH MORTGAGE DOWN

5 PAYMENT CREDIT.—No amount shall be allowed as 

6 a deduction under paragraph (1) to the taxpayer if 

7 a credit is allowed under section 36 for the taxable 

8 year. 

9 ‘‘(4) DEDUCTION NOT ALLOWED TO DEPEND10 ENTS.—A deduction shall not be allowed to an indi11 vidual for a taxable year under paragraph (1) if 

12 such individual is a dependent for whom a deduction 

13 is allowable under section 151 to another taxpayer 

14 for any taxable year beginning in the same calendar 

15 year in which such individual’s taxable year begins. 

16 ‘‘(b) DEFINITIONS.—For purposes of this section— 

17 ‘‘(1) MORTGAGE DOWN PAYMENT ACCOUNT.— 

18 The term ‘mortgage down payment account’ means 

19 a trust created or organized in the United States ex20 clusively for the purpose of paying the qualified ex21 penses of a taxpayer, but only if the written gov22 erning instrument creating the trust meets the fol23 lowing requirements: 

24 ‘‘(A) No contribution will be accepted— 

25 ‘‘(i) unless it is in cash, or 


rwilkins on PROD1PC63 with BILLS
7 

•HR 5137 IH 

1 ‘‘(ii) except in the case of rollover con2 tributions and contributions under section 

3 36(b)(3)(B), if such contribution would re4 sult in aggregate contributions for the tax5 able year exceeding the amount allowed as 

6 a deduction under subsection (a). 

7 ‘‘(B) The trustee is a bank (as defined in 

8 section 408(n)) or another person who dem9 onstrates to the satisfaction of the Secretary 

10 that the manner in which that person will ad11 minister the trust will be consistent with the re12 quirements of this section or who has so dem13 onstrated with respect to any individual retire14 ment plan. 

15 ‘‘(C) No part of the trust assets will be in16 vested in life insurance contracts. 

17 ‘‘(D) The assets of the trust shall not be 

18 commingled with other property except in a 

19 common trust fund or common investment 

20 fund. 

21 ‘‘(2) QUALIFIED EXPENSES.—The term ‘quali22 fied expenses’ means with respect to a principal resi23 dence of the taxpayer who is a first-time home24 buyer— 


rwilkins on PROD1PC63 with BILLS
8 

•HR 5137 IH 

1 ‘‘(A) the costs of acquiring, constructing, 

2 or reconstructing the residence, including any 

3 usual or reasonable settlement, financing, or 

4 other closing costs qualified acquisition costs, 

5 ‘‘(B) the cost of repairing or replacing 

6 major structural components of the residence, 

7 and 

8 ‘‘(C) the costs of purchasing a major appli9 ances for service in the residence. 

10 ‘‘(3) FIRST-TIME HOMEBUYER.— 

11 ‘‘(A) IN GENERAL.—The term ‘first-time 

12 homebuyer’ means any individual if— 

13 ‘‘(i) such individual (and if married, 

14 such individual’s spouse) had no present 

15 ownership interest in a principal residence 

16 during the 2-year period ending on the 

17 date of acquisition of the principal resi18 dence to which this subsection applies, and 

19 ‘‘(ii) subsection (h) or (k) of section 

20 1034 (as in effect on the day before the 

21 date of the enactment of this paragraph) 

22 did not suspend the running of any period 

23 of time specified in section 1034 (as so in 

24 effect) with respect to such individual on 


rwilkins on PROD1PC63 with BILLS
9 

•HR 5137 IH 

1 the day before the end of the period speci2 fied in clause (i). 

3 ‘‘(B) PRINCIPAL RESIDENCE.—The term 

4 ‘principal residence’ has the same meaning as 

5 when used in section 121. 

6 ‘‘(C) DATE OF ACQUISITION.—The term 

7 ‘date of acquisition’ means the date— 

8 ‘‘(i) on which a binding contract to 

9 acquire the principal residence to which 

10 subparagraph (A) applies is entered into, 

11 or 

12 ‘‘(ii) on which construction or recon13 struction of such a principal residence is 

14 commenced. 

15 ‘‘(c) TAX TREATMENT OF ACCOUNT.— 

16 ‘‘(1) IN GENERAL.—A mortgage down payment 

17 account shall be exempt from taxation under this 

18 subtitle. Notwithstanding the preceding sentence, 

19 the mortgage down payment account shall be subject 

20 to the taxes imposed by section 511 (relating to im21 position of tax on unrelated business income of char22 itable organizations). 

23 ‘‘(2) ACCOUNT TERMINATIONS.—Rules similar 

24 to the rules of paragraphs (2) and (4) of section 


rwilkins on PROD1PC63 with BILLS
10 

•HR 5137 IH 

1 408(e) shall apply to any mortgage down payment 

2 account. 

3 ‘‘(d) TAX TREATMENT OF DISTRIBUTIONS.— 

4 ‘‘(1) IN GENERAL.—Any distribution shall be 

5 includible in the gross income of the distributee in 

6 the manner as provided in section 72. 

7 ‘‘(2) QUALIFIED DISTRIBUTIONS.— 

8 ‘‘(A) EXCLUSION.—Any qualified distribu9 tion from a mortgage down payment account 

10 shall not be includible in gross income. 

11 ‘‘(B) QUALIFIED DISTRIBUTION.—For 

12 purposes of this paragraph— 

13 ‘‘(i) IN GENERAL.—The term ‘quali14 fied distribution’ means any payment of 

15 distribution— 

16 ‘‘(I) if the qualified expenses of 

17 the designated beneficiary during the 

18 taxable year are not less than the ag19 gregate distributions during the tax20 able year, 

21 ‘‘(II) made on or after the date 

22 on which the individual attains age 

591 23 ⁄2, 


rwilkins on PROD1PC63 with BILLS
11 

•HR 5137 IH 

1 ‘‘(III) made to a beneficiary (or 

2 to the estate of the individual) on or 

3 after the death of the individual, or 

4 ‘‘(IV) attributable to the individ5 ual’s being disabled (within the mean6 ing of section 72(m)(7). 

7 ‘‘(C) DISTRIBUTIONS IN EXCESS OF EX8 PENSES.— 

9 ‘‘(i) IN GENERAL.—If such aggregate 

10 distributions exceed such expenses during 

11 the taxable year, the amount otherwise in12 cludible in gross income under paragraph 

13 (1) shall be reduced by the amount which 

14 bears the same ratio to the amount which 

15 would be includible in gross income under 

16 paragraph (1) (without regard to this sub17 paragraph) as the qualified expenses bear 

18 to such aggregate distributions. 

19 ‘‘(ii) MORTGAGE GRANT PROGRAMS, 

20 ETC.—The amount of qualified expenses 

21 otherwise taken into account under sub22 paragraph (B) with respect to an indi23 vidual shall be reduced by any payment for 

24 such expenses which is excludible from 


rwilkins on PROD1PC63 with BILLS
12 

•HR 5137 IH 

1 gross income under any law of the United 

2 States. 

3 ‘‘(3) ADDITIONAL TAX FOR DISTRIBUTIONS NOT

4 USED FOR QUALIFIED EXPENSES.— 

5 ‘‘(A) IN GENERAL.—The tax imposed by 

6 this chapter for any taxable year on any tax7 payer who receives a payment or distribution 

8 from a mortgage down payment account which 

9 is includible in gross income shall be increased 

10 by 10 percent of the amount which is so includ11 ible. 

12 ‘‘(B) CONTRIBUTIONS RETURNED BEFORE

13 CERTAIN DATE.—Subparagraph (A) shall not 

14 apply to the distribution of any contribution 

15 made during a taxable year on behalf of the 

16 designated beneficiary if— 

17 ‘‘(i) such distribution is made before 

18 the first day of the sixth month of the tax19 able year following the taxable year, and 

20 ‘‘(ii) such distribution is accompanied 

21 by the amount of net income attributable 

22 to such excess contribution. 

23 Any net income described in clause (ii) shall be 

24 included in gross income for the taxable year in 

25 which such excess contribution was made. 


rwilkins on PROD1PC63 with BILLS
13 

•HR 5137 IH 

1 ‘‘(4) ROLLOVER CONTRIBUTIONS.—Paragraph 

2 (1) shall not apply to any amount paid or distrib3 uted from a mortgage down payment account to the 

4 extent that the amount received is paid, not later 

5 than the 60th day after the date of such payment 

6 or distribution, into another mortgage down pay7 ment account for the taxpayer. The preceding sen8 tence shall not apply to any payment or distribution 

9 if such paragraph applied to any prior payment or 

10 distribution during the 12-month period ending on 

11 the date of the payment or distribution. 

12 ‘‘(e) RECAPTURE.—The Secretary shall, by regula13 tions, provide for recapturing the benefit provided under 

14 this section and section 36 with respect to any property 

15 which ceases to be the principal residence of the taxpayer 

16 before the end of the 15-year period beginning on the last 

17 date on which amounts were excluded from gross income 

18 under subsection (d)(2) with respect to such property. 

19 Such regulations shall provide exceptions in the case of 

20 the divorce, disability, or death of the taxpayer. 

21 ‘‘(f) COMMUNITY PROPERTY LAWS.—This section 

22 shall be applied without regard to any community property 

23 laws. 

24 ‘‘(g) CUSTODIAL ACCOUNTS.—For purposes of this 

25 section, a custodial account shall be treated as a trust if 


rwilkins on PROD1PC63 with BILLS
14 

•HR 5137 IH 

1 the assets of such account are held by a bank (as defined 

2 in section 408(n) or another person who demonstrates, to 

3 the satisfaction of the Secretary, that the manner in which 

4 he will administer the account will be consistent with the 

5 requirements of this section, and if the custodial account 

6 would, except for the fact that it is not a trust, constitute 

7 an account described in subsection (b)(1). For purposes 

8 of this title, in the case of a custodial account treated as 

9 a trust by reason of the preceding sentence, the custodian 

10 of such account shall be treated as the trustee thereof. 

11 ‘‘(h) REPORTS.—The trustee of a mortgage down 

12 payment account shall make such reports regarding such 

13 account to the Secretary and to the beneficiary of the ac14 count with respect to contributions, distributions, and 

15 such other matters as the Secretary may require. The re16 ports required by this subsection shall be filed at such time 

17 and in such manner and furnished to such individuals at 

18 such time and in such manner as may be required.’’. 

19 (b) DEDUCTION ALLOWED WHETHER OR NOT INDI20 VIDUAL ITEMIZES OTHER DEDUCTIONS.—Subsection (a) 

21 of section 62 of such Code is amended by inserting before 

22 the last sentence at the end the following new paragraph: 

23 ‘‘(21) MORTGAGE DOWN PAYMENT ACCOUNT.— 

24 The deduction allowed by section 224.’’. 

25 (c) PROHIBITED TRANSACTIONS.— 


rwilkins on PROD1PC63 with BILLS
15 

•HR 5137 IH 

1 (1) EXCEPTION FOR TAXABLE DISTRIBUTIONS

2 FROM MORTGAGE DOWN PAYMENT ACCOUNTS.—Sub3 section (c) of section 4975 of such Code (defining to 

4 prohibited transaction) is amended by adding at the 

5 end the following new paragraph: 

6 ‘‘(7) SPECIAL RULE FOR MORTGAGE DOWN PAY7 MENT ACCOUNTS.—An individual for whose benefit a 

8 mortgage down payment account is established and 

9 any contributor to such account shall be exempt 

10 from the tax imposed by this section with respect to 

11 any transaction concerning such account (which 

12 would otherwise be taxable under this section) if sec13 tion 224(d)(3) applies with respect to such trans14 action.’’. 

15 (2) PLAN DEFINED.—Paragraph (1) of section 

16 4975(e) of such Code is amended by striking ‘‘or’’ 

17 at the end of subparagraph (F), by striking the pe18 riod at the end of subparagraph (G) and inserting 

19 ‘‘, or’’, and by inserting after subparagraph (G) the 

20 following new subparagraph: 

21 ‘‘(H) a mortgage down payment account 

22 described in section 224.’’. 

23 (d) EXCESS CONTRIBUTIONS.— 

24 (1) IN GENERAL.—Section 4973(a) of such 

25 Code relating to tax imposed) is amended by striking 


rwilkins on PROD1PC63 with BILLS
16 

•HR 5137 IH 

1 ‘‘or’’ at the end of paragraph (4), by inserting ‘‘or’’ 

2 at the end of paragraph (5), and by inserting after 

3 paragraph (5) the following new paragraph: 

4 ‘‘(6) a mortgage down payment account (within 

5 the meaning of section 224(b)(1)).’’. 

6 (2) EXCESS CONTRIBUTIONS TO MORTGAGE

7 DOWN PAYMENT ACCOUNTS.—Section 4973 of such 

8 Code (relating to tax on excess contributions to cer9 tain tax-favored accounts and annuities) is amended 

10 by adding at the end the following new subsection: 

11 ‘‘(h) EXCESS CONTRIBUTIONS TO MORTGAGE DOWN

12 PAYMENT ACCOUNTS.—For purposes of this section— 

13 ‘‘(1) IN GENERAL.—In the case of contributions 

14 to a mortgage down payment account, the term ‘ex15 cess contributions’ means the sum of— 

16 ‘‘(A) the excess (if any) of— 

17 ‘‘(i) the amount contributed for the 

18 taxable year to the accounts (other than a 

19 rollover contribution described in section 

20 224(d)(4) and contributions under section 

21 36(c), over 

22 ‘‘(ii) the amount allowable as a deduc23 tion under section 224 for such contribu24 tions or as a credit under section 36 for 


rwilkins on PROD1PC63 with BILLS
17 

•HR 5137 IH 

1 such contributions, as the case may be, 

2 and 

3 ‘‘(B) the amount determined under this 

4 subsection for the preceding taxable year, re5 duced by the sum of— 

6 ‘‘(i) the distributions out of the ac7 counts for the taxable year (other than 

8 rollover distributions), and 

9 ‘‘(ii) the excess (if any) of the max10 imum amount which may be contributed to 

11 the accounts for the taxable year over the 

12 amount contributed to the accounts for the 

13 taxable year. 

14 ‘‘(2) SPECIAL RULES.—For purposes of para15 graph (1), the following contributions shall not be 

16 taken into account: 

17 ‘‘(A) Any contribution which is distributed 

18 out of the mortgage down payment account in 

19 a distribution to which section 224(d)(3)(B) ap20 plies. 

21 ‘‘(B) Any rollover contribution.’’. 

22 (e) PENALTY ON FAILURE TO REPORT.—Paragraph 

23 (2) of section 6693(a) of such Code (relating to provisions) 

24 is amended by striking ‘‘and’’ at the end of subparagraph 

25 (D), by striking the period at the end of subparagraph 


rwilkins on PROD1PC63 with BILLS
18 

•HR 5137 IH 

1 (E) and inserting ‘‘, and’’, and by inserting after subpara2 graph (E) the following new subparagraph: 

3 ‘‘(F) section 224(g) (relating to mortgage 

4 down payment accounts).’’. 

5 (f) CONFORMING AMENDMENTS.— 

6 (1) Section 26(b)(2) of such Code is amended 

7 by striking ‘‘and’’ at the end of subparagraph S, by 

8 striking the period at the end of subparagraph (T) 

9 and inserting ‘‘, and’’, and by inserting after sub10 paragraph (T) the following new subparagraph: 

11 ‘‘(U) section 224(d)(3) (relating to additional 

12 tax for distributions not used for qualified ex13 penses).’’. 

14 (2) Section 72(t)(8)(C) of such Code is amend15 ed by inserting at the end the following new sen16 tence: ‘‘Such costs shall not include any amount 

17 taken into account under section 224.’’. 

18 (g) CLERICAL AMENDMENTS.—The table of sections 

19 for part VII of subchapter B of chapter 1 of such Code 

20 is amended by redesignating the item relating to section 

21 224 as an item relating to section 225 and by inserting 

22 after the item relating to section 223 the following new 

23 item: 

‘‘Sec. 224. Mortgage down payment accounts.’’. 


rwilkins on PROD1PC63 with BILLS
19 

•HR 5137 IH 

1 (h) EFFECTIVE DATE.—The amendments made by 

2 this section shall apply to taxable years beginning after 

3 December 31, 2006. 

4 SEC. 4. REFUNDABLE CREDIT FOR CONTRIBUTIONS TO 

5 MORTGAGE DOWN PAYMENT ACCOUNTS. 

6 (a) IN GENERAL.—Subpart C of part IV of sub7 chapter A of chapter 1 of the Internal Revenue Code of 

8 1986 is amended by redesignating section 36 as section 

9 37 and by inserting after section 35 the following new sec10 tion: 

11 ‘‘SEC. 36. CONTRIBUTIONS TO MORTGAGE DOWN PAYMENT 

12 ACCOUNTS. 

13 ‘‘(a) GENERAL RULE.—In the case of an individual, 

14 there shall be allowed as a credit against the tax imposed 

15 by this chapter an amount equal to the amount contrib16 uted by the individual to any mortgage down payment ac17 count of the taxpayer. 

18 ‘‘(b) LIMITATION BASED ON MODIFIED ADJUSTED

19 GROSS INCOME.— 

20 ‘‘(1) IN GENERAL.—The amount allowed as a 

21 credit under subsection (a) with respect to the tax22 payer for any taxable year shall not exceed the appli23 cable dollar limit. 

24 ‘‘(2) APPLICABLE DOLLAR LIMIT.— 


rwilkins on PROD1PC63 with BILLS
20 

•HR 5137 IH 

1 ‘‘(A) IN GENERAL.—In the case of a tax2 payer whose modified adjusted gross income for 

3 the taxable year does not exceed 100 percent of 

4 area median income, the applicable dollar limit 

5 shall be equal to $2,500 ($5,000 in the case of 

6 a joint return). 

7 ‘‘(B) NO CREDIT FOR INCOMES IN EXCESS

8 OF LIMIT.—In the case of any other taxpayer, 

9 the applicable dollar limit shall be zero. 

10 ‘‘(3) AREA MEDIAN INCOME.—For purposes of 

11 paragraph (2)— 

12 ‘‘(A) IN GENERAL.—The area median in13 come means the area median income deter14 mined by the Secretary of Housing and Urban 

15 Development for the calendar year ending with 

16 or within the taxable year of the taxpayer. 

17 ‘‘(B) TAXPAYER RESIDING IN MORE THAN

18 1 AREA FOR THE TAXABLE YEAR.—In the case 

19 that the taxpayer had more than one principal 

20 residence during the taxable year, the area me21 dian income means the sum of the residing per22 centage of the area median income for each 

23 area in which the taxpayer had a principal resi24 dence during the taxable year. 


rwilkins on PROD1PC63 with BILLS
21 

•HR 5137 IH 

1 ‘‘(C) RESIDING PERCENTAGE.—For pur2 poses of subparagraph (B), the term ‘residing 

3 percentage’ means the ratio of the number of 

4 days that the taxpayer had his principal resi5 dence in an area bears to 365. 

6 ‘‘(4) MODIFIED ADJUSTED GROSS INCOME.— 

7 For purposes of this subsection, the term ‘modified 

8 adjusted gross income’ means the adjusted gross in9 come of the taxpayer for the taxable year increased 

10 by any amount excluded from gross income under 

11 section 911, 931, or 933. 

12 ‘‘(c) ONE-TIME FEDERAL MATCH.— 

13 ‘‘(1) IN GENERAL.—In the case of a taxpayer 

14 for whom an election is in effect under this sub15 section for any taxable year, the amount allowed as 

16 a credit under subsection (a) shall be increased by 

17 $500. 

18 ‘‘(2) COMPLETION OF HOME OWNERSHIP COUN19 SELING COURSE.—A individual may not make an 

20 election under this subsection unless the individual 

21 (and if married, such individual’s spouse) has com22 pleted the home ownership counseling under a pro23 gram that meets the requirements under section 

24 271(c)(2)(C) of the Cranston-Gonzalez National Af25 fordable Housing Act. 


rwilkins on PROD1PC63 with BILLS
22 

•HR 5137 IH 

1 ‘‘(3) ELECTION APPLIES ONLY TO 1 TAXABLE

2 YEAR.—An election to have paragraph (1) apply 

3 with respect to any eligible individual may not be 

4 made for any taxable year if such an election is in 

5 effect with respect to such individual for any other 

6 prior taxable year. 

7 ‘‘(4) TAXPAYER MUST NOT HAVE DEFI8 CIENCY.—Under regulations prescribed by the Sec9 retary, an election under this subsection shall not be 

10 effective for any taxable year for which the taxpayer 

11 has unpaid tax or a deficiency. 

12 ‘‘(d) DEPOSIT OF CREDIT AMOUNTS IN MORTGAGE

13 DOWN PAYMENT ACCOUNT.— 

14 ‘‘(1) IN GENERAL.—Notwithstanding any other 

15 provision of this title— 

16 ‘‘(A) no amount shall be allowed as a cred17 it under this section unless the taxpayer des18 ignates a mortgage down payment account into 

19 which such credit can be contributed, and 

20 ‘‘(B) the entire amount of the credit al21 lowed under this section shall be treated as an 

22 overpayment described in section 6401(b). 

23 ‘‘(2) CREDIT DEPOSITED INTO ACCOUNT.—The 

24 Secretary shall deposit by electronic funds transfer 

25 into such designated mortgage down payment acVerDate Aug 31 2005 21:35 Apr 13, 2006 Jkt 049196 PO 00000 Frm 00022 Fmt 6652 Sfmt 6201 E:\BILLS\H5137.IH H5137

rwilkins on PROD1PC63 with BILLS
23 

•HR 5137 IH 

1 count the amount treated as an overpayment under 

2 paragraph (1)(B). 

3 ‘‘(3) JOINT RETURNS.—In the case of a pay4 ment under this subsection with respect to a joint 

5 return, half of such payment shall be treated as hav6 ing been made to each individual filing such return. 

7 ‘‘(e) CREDIT NOT ALLOWED TO DEPENDENTS.—A 

8 credit shall not be allowed to an individual for a taxable 

9 year under subsection (a) if such individual is a dependent 

10 for whom a deduction is allowable under section 151 to 

11 another taxpayer for any taxable year beginning in the 

12 same calendar year in which such individual’s taxable year 

13 begins.’’. 

14 (b) CONFORMING AMENDMENTS.— 

15 (1) Section 72(t)(8)(C) of such Code is amend16 ed by inserting ‘‘or 36’’ before the period at the end. 

17 (2) Paragraph (2) of section 1324(b) of title 

18 31, United States Code, is amended by inserting be19 fore the period ‘‘, or from section 36 of such Code’’. 

20 (3) The table of sections for subpart C of part 

21 IV of chapter 1 of the Internal Revenue Code of 

22 1986 is amended by redesignating the item relating 

23 to section 36 as an item relating to section 37 and 

24 by inserting before the item relating to section 37 

25 the following new item: 

‘‘Sec. 36. Contributions to mortgage down payment accounts.’’. 


rwilkins on PROD1PC63 with BILLS
24 

•HR 5137 IH 

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

2 this section shall apply to contributions made in taxable 

3 years beginning after December 31, 2006. 

4 SEC. 5. AMENDMENTS TO AMERICAN DREAM DOWNPAY5 MENT INITIATIVE. 

6 (a) HOME OWNERSHIP COUNSELING REQUIRE7 MENT.—Section 271(c) of the Cranston-Gonzalez Na8 tional Affordable Housing Act (42 U.S.C. 12821(c)) is 

9 amended— 

10 (1) in paragraph (1), by adding at the end the 

11 following new subparagraph: 

12 ‘‘(C) HOME OWNERSHIP COUNSELING.— 

13 Providing home ownership counseling that 

14 meets the requirements of paragraph (2)(C) for 

15 families who are provided downpayment assist16 ance under this section.’’. 

17 (2) in paragraph (2), by adding at the end the 

18 following new subparagraph: 

19 ‘‘(C) HOME OWNERSHIP COUNSELING RE20 QUIREMENT.—Downpayment assistance under 

21 this section may not be provided under this sec22 tion on behalf of a family unless the family has 

23 completed a program of counseling with respect 

24 to the responsibilities and financial manage25 ment involved in home ownership that is apVerDate Aug 31 2005 21:35 Apr 13, 2006 Jkt 049196 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\H5137.IH H5137

rwilkins on PROD1PC63 with BILLS
25 

•HR 5137 IH 

1 proved by the Secretary and includes counseling 

2 regarding strategies to save money, qualifying 

3 for a mortgage loan, methods to avoid preda4 tory lenders and foreclosure, and, where appro5 priate by region, any requirements and costs re6 garding obtaining flood or other disaster-spe7 cific insurance coverage.’’. 

8 (b) AMOUNT AND USE OF DOWNPAYMENT ASSIST9 ANCE.—Section 271(c) of the Cranston-Gonzalez National 

10 Affordable Housing Act (42 U.S.C. 12821(c)) is amend11 ed— 

12 (1) in paragraph (1)(A), by inserting after the 

13 period at the end the following: ‘‘Such assistance 

14 may be used to pay the principal obligation of a 

15 mortgage loan, taxes, insurance, service charges, ap16 praisal, and any other fees in connection with acqui17 sition of a principal residence.’’; and 

18 (2) in paragraph (2)(A)— 

19 (A) in clause (i), by striking ‘‘6 percent’’ 

20 and inserting ‘‘10 percent’’; and 

21 (B) in clause (ii), by striking ‘‘$10,000’’ 

22 and inserting ‘‘$15,000’’. 

23 (c) PRIORITY FOR CERTAIN POPULATIONS.—Section 

24 271(c)(2) of the Cranston-Gonzalez National Affordable 

25 Housing Act (42 U.S.C. 12821(c)(2)), as amended by the 


rwilkins on PROD1PC63 with BILLS
26 

•HR 5137 IH 

1 preceding provisions of this section, is further amended 

2 by adding at the end the following new subparagraph: 

3 ‘‘(D) AUTHORITY FOR JURISDICTION TO

4 PROVIDE PRIORITY FOR CERTAIN POPU5 LATIONS.—In providing assistance with 

6 amounts from a grant under this section, a par7 ticipating jurisdiction may, in the discretion of 

8 the jurisdiction, provide priority for such assist9 ance to certain categories of eligible low-income 

10 families, who may include elderly persons, mem11 bers of the Armed Forces, teachers, first re12 sponders, other service workers, persons dis13 placed by natural disasters or governmental ac14 tions, nurses or other health care providers, or 

15 any other categories of eligible low-income fami16 lies that the participating jurisdiction considers 

17 appropriate.’’. 

18 (d) DEFINITION OF FIRST-TIME HOMEBUYER.—Sec19 tion 271(a) of the Cranston-Gonzalez National Affordable 

20 Housing Act (42 U.S.C. 12821(a)) is amended— 

21 (1) by resdesignating paragraphs (2) through 

22 (4) as paragraphs (2) through (5), respectively; and 

23 (2) by inserting after paragraph (1) the fol24 lowing new paragraph: 


rwilkins on PROD1PC63 with BILLS
27 

•HR 5137 IH 

1 ‘‘(2) FIRST-TIME HOMEBUYER.—The term 

2 ‘first-time homebuyer’ has the meaning given such 

3 term in paragraph (14) of section 104, except that 

4 an individual may not be excluded from consider5 ation as a first-time homebuyer under such para6 graph on the basis that the individual— 

7 ‘‘(A) owns or owned a home with, or re8 sided in a home owned by, a spouse, former 

9 spouse, or other person if such individual no 

10 longer resides in such home and was a victim 

11 of domestic abuse (as such term is defined in 

12 section 40002 of the Violence Against Women 

13 Act of 1994 (42 U.S.C. 13925)) from such 

14 spouse, former spouse, or other person; or 

15 ‘‘(B) owns or owned, as a principal resi16 dence during the 3-year period referred to in 

17 such paragraph, a home from which such per18 son is displaced as a result of a government ac19 tion other than eviction from public housing as20 sisted under title I of the United States Hous21 ing Act of 1937 (42 U.S.C. 1437 et seq.).’’. 

22 (e) PERIOD OF AFFORDABILITY.—Paragraph (2) of 

23 section 271(f) of the Cranston-Gonzalez National Afford24 able Housing Act (42 U.S.C. 12821) is amended by insert25 ing before the period at the end the following: ‘‘, except 


rwilkins on PROD1PC63 with BILLS
28 

•HR 5137 IH 

1 that any housing purchased with downpayment assistance 

2 under this section shall meet the affordability require3 ments under section 215(b) and the regulations issued 

4 under such section for a minimum period of 15 years, re5 gardless of the amount of such downpayment assistance 

6 provided’’. 

7 (f) REPORT.—Subsection (h) of section 271 of the 

8 Cranston-Gonzalez National Affordable Housing Act (42 

9 U.S.C. 12821) is amended— 

10 (1) by striking ‘‘June 30, 2006’’ and inserting 

11 ‘‘June 30 of each year ’’; and 

12 (2) by adding after and below paragraph (2) 

13 the following: 

14 ‘‘The report under this subsection shall include informa15 tion regarding the quality and quantity of housing pur16 chased using assistance made available under this section, 

17 the amount of assistance provided per family, the incomes 

18 of the families assisted, the amount of time that low-in19 come families assisted under this section continue to reside 

20 in housing purchased with such assistance, the quality of 

21 home ownership counseling provided in connection with 

22 such assistance, the types of priorities established by par23 ticipating jurisdictions pursuant to subsection (c)(2)(D), 

24 and the benefits to such jurisdictions resulting from estab25 lishing such priorities.’’. 


rwilkins on PROD1PC63 with BILLS
29 

•HR 5137 IH 

1 (g) AUTHORIZATION OF APPROPRIATIONS.—Sub2 section (k) of section 271 of the Cranston-Gonzalez Na3 tional Affordable Housing Act (42 U.S.C. 12821(k)) is 

4 amended by striking ‘‘2007’’ and inserting the following: 

5 ‘‘2006 and $200,000,000 for each of fiscal years 2007 

6 through 2014’’. 

7 SEC. 6. PRODUCTION OF AFFORDABLE HOME OWNERSHIP 

8 HOUSING. 

9 (a) PROGRAM AUTHORITY.—The Secretary of Hous10 ing and Urban Development shall carry out a program to 

11 make grants to units of general local government to pro12 vide financial assistance to developers for the production 

13 of housing for home ownership that meets the require14 ments of this section and is affordable to low- and mod15 erate-income families. 

16 (b) GRANT AND ASSISTANCE AMOUNTS.—The Sec17 retary shall establish limitations— 

18 (1) regarding the amount of a grant that may 

19 be made under this section to a unit of general local 

20 government; and 

21 (2) the portion of the total development costs of 

22 housing to be constructed using such grant amounts 

23 that may be funded with such grant amounts. 

24 (c) AFFORDABLE DWELLING UNITS.—Amounts from 

25 a grant under this Act may be used only for costs involved 


rwilkins on PROD1PC63 with BILLS
30 

•HR 5137 IH 

1 in the development of housing of which not less than 25 

2 percent of the single-family dwelling units are affordable 

3 dwelling units that meet the following requirements: 

4 (1) HOME OWNERSHIP.—Such affordable dwell5 ing units shall be made available only for purchase 

6 by the occupying family, which may include owner7 ship of a one-family unit in a condominium project 

8 and an undivided interest in the common areas or a 

9 membership interest and occupancy agreement in co10 operative housing project, and may not be made 

11 available for rental. 

12 (2) LOW- AND MODERATE-INCOME LIMITA13 TIONS; PRINCIPAL RESIDENCE.—Such affordable 

14 dwelling units shall be available for purchase by a 

15 family who is a first-time homebuyer, for use only as 

16 the principal residence of such family, as follows: 

17 (A) LOW-INCOME UNITS.—Not less than 

18 15 percent shall be available for purchase only 

19 by low-income families. 

20 (B) MODERATE-INCOME UNITS.—Not less 

21 than 10 percent shall be available for purchase 

22 only by moderate-income families. 

23 (3) AFFORDABILITY.—Such affordable dwelling 

24 units shall be made available for purchase at an ini25 tial purchase price that does not exceed such perVerDate Aug 31 2005 21:35 Apr 13, 2006 Jkt 049196 PO 00000 Frm 00030 Fmt 6652 Sfmt 6201 E:\BILLS\H5137.IH H5137

rwilkins on PROD1PC63 with BILLS
31 

•HR 5137 IH 

1 centage of the median purchase price for the area in 

2 which the housing is located, as the grantee unit of 

3 general local government shall provide, with adjust4 ments based on the size of the dwelling unit as the 

5 unit of general local government considers appro6 priate. 

7 (4) RESALE RESTRICTIONS.—Such affordable 

8 dwelling units shall be subject to resale and recap9 ture restrictions that are established by the grantee 

10 unit of general local government and determined by 

11 the Secretary to comply with the requirements for 

12 such restrictions under section 215(b)(3) of the 

13 Cranston-Gonzalez National Affordable Housing Act 

14 (42 U.S.C. 12745(b)(3)). 

15 (5) PRIORITY FOR CERTAIN POPULATIONS.— 

16 The grantee unit of general local government may 

17 require that priority be given, among prospective 

18 purchasers of such affordable dwelling units, to cer19 tain categories of low- and moderate-income families 

20 otherwise eligible to purchase such dwelling units, 

21 who may include elderly persons, members of the 

22 Armed Forces, teachers, first responders, other serv23 ice workers, persons displaced by natural disasters 

24 or governmental actions, nurses or other health care 

25 providers, or any other categories of eligible low-inVerDate Aug 31 2005 21:35 Apr 13, 2006 Jkt 049196 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\H5137.IH H5137

rwilkins on PROD1PC63 with BILLS
32 

•HR 5137 IH 

1 come families that the unit of general local govern2 ment considers appropriate. 

3 (6) LOCATION.—Except as provided in sub4 section (d), such affordable dwelling units shall be 

5 located together with and among the other dwelling 

6 units developed using amounts from a grant under 

7 this section. 

8 (d) INCREASE IN AFFORDABLE UNITS FOR FLEXI9 BILITY IN LOCATION.—A unit of general local government 

10 may provide that the affordable dwelling units developed 

11 using amounts from a grant under this section are located 

12 at a site separate from the site of other dwelling units 

13 developed using such grant amounts, but only if the unit 

14 of general local government requires that the percentage 

15 of affordable dwelling units developed using such grant 

16 amounts is greater than the percentage specified in sub17 section (c). 

18 (e) MIXED INCOME REQUIREMENTS.—Any housing 

19 constructed in whole or in part with amounts from a grant 

20 under this Act to a unit of general local government shall 

21 meet such requirements regarding income eligibility as 

22 such unit shall establish to ensure that the families pur23 chasing such housing include a broad range of incomes. 

24 (f) CODE COMPLIANCE.—All dwelling units in any 

25 housing constructed in whole or in part with amounts from 


rwilkins on PROD1PC63 with BILLS
33 

•HR 5137 IH 

1 a grant under this Act shall comply with all applicable 

2 Federal, State, and local law, regulations, and require3 ments relating to housing construction, quality, and safe4 ty, including any requirements regarding earthquake- or 

5 windstorm-resistant construction. 

6 (g) COST LIMITS.— 

7 (1) IN GENERAL.—Each unit of general local 

8 government that receives a grant under this section 

9 shall establish limitations on the amount of grant 

10 funds that may be invested in housing constructed 

11 with such funds on a per unit basis. Such limits may 

12 be established on a market-by-market basis, with ad13 justments made for the number of bedrooms in a 

14 dwelling unit, and shall reflect the actual cost of new 

15 construction of housing that complies with sub16 section (f). Adjustments of such cost limitations may 

17 be made over time to reflect inflation. 

18 (2) CRITERIA.— The Secretary shall ensure 

19 that the cost limitations established by each unit of 

20 general local government— 

21 (A) provide for development of nonluxury 

22 housing with appropriate amenities; 

23 (B) facilitate compliance with the mixed24 income requirement under subsection (e). 


rwilkins on PROD1PC63 with BILLS
34 

•HR 5137 IH 

1 (h) DEVELOPMENT INCENTIVES.—The Secretary 

2 may not make a grant under this section to a unit of gen3 eral local government unless the Secretary determines that 

4 such unit has provided one or both of the following incen5 tives with respect to any housing to be produced in whole 

6 or in part with such grant amounts: 

7 (1) EXCESS DENSITY.—The unit of general 

8 local government has provided, for such housing, 

9 such exceptions to any requirements regarding the 

10 density of housing or dwelling units located in an 

11 area, so as to encourage the production of affordable 

12 dwelling units. 

13 (2) REGULATORY FLEXIBILITY.—The unit of 

14 general local government has provided— 

15 (A) with respect to such housing, excep16 tions to existing regulatory requirements re17 garding housing location and construction de18 signed to encourage the production of afford19 able dwelling units, which may include pro20 viding for expedited obtaining of construction 

21 permits, reduced parking requirements, reduced 

22 setbacks from streets, narrower streets, and 

23 other reduced development restrictions; and 

24 (B) financial incentives designed to encour25 age the production of affordable dwelling units, 


rwilkins on PROD1PC63 with BILLS
35 

•HR 5137 IH 

1 which may include reduced permit fees, pro2 viding subsidized construction loans, availability 

3 of publicly owned lands at reduced prices, pro4 viding mortgage financing for low- and mod5 erate-income families purchasing such housing, 

6 and tax exemptions for such families pur7 chasing such housing. 

8 (i) INCENTIVES.— 

9 (1) IN GENERAL.—Notwithstanding the limita10 tion under subsection (b)(2) on the portion of the 

11 development costs of housing to be constructed using 

12 grant amounts under this section that may be fund13 ed with such grant amounts, each unit of general 

14 local government that receives a grant under this 

15 section shall provide the following incentives: 

16 (A) TRANSPORTATION.—The unit of gen17 eral local government shall provide that the por18 tion of the development costs of any housing 

19 that may be so funded shall be increased by 

20 such percentage as the unit of general local gov21 ernment considers appropriate, subject to para22 graph (2), if the unit of general local govern23 ment determines that such housing is located 

24 within one-third of a mile of a mass transpor25 tation station (including any subway, rail, bus, 


rwilkins on PROD1PC63 with BILLS
36 

•HR 5137 IH 

1 or other commuter transportation system sta2 tion) providing service during peak use periods 

3 on weekdays not less than every 15 minutes. 

4 (B) ENERGY EFFICIENCY.—The unit of 

5 general local government shall provide that the 

6 portion of the development costs of any housing 

7 that may be so funded shall be increased by 

8 such percentage as the unit of general local gov9 ernment considers appropriate, subject to para10 graph (2), if the unit of general local govern11 ment determines that such housing complies 

12 with— 

13 (i) the standards established under 

14 the Energy Star Program under section 

15 324A of the Energy Policy and Conserva16 tion Act (42 U.S.C. 6294a); and 

17 (ii) the requirements to be eligible for 

18 a deduction under section 179D of the In19 ternal Revenue Code of 1986 (relating to 

20 energy efficient commercial buildings), ex21 cept that, for purposes of this paragraph, 

22 subsection (c) of such section shall be ap23 plied— 

24 (I) in the case of any housing 

25 that is single-family housing, multiVerDate Aug 31 2005 21:35 Apr 13, 2006 Jkt 049196 PO 00000 Frm 00036 Fmt 6652 Sfmt 6201 E:\BILLS\H5137.IH H5137

rwilkins on PROD1PC63 with BILLS
37 

•HR 5137 IH 

1 family housing of three or fewer sto2 ries above grade, or modular housing, 

3 by substituting Standard 90.2–2004 

4 of the American Society of Heating, 

5 Refridgerating, and Air Conditioning 

6 Engineers and the Illuminating Engi7 neering Society of North America for 

8 Standard 90.1–2001, each place such 

9 standard appears; and 

10 (II) in the case of any multi11 family housing of four stories or more 

12 above grade, by substituting Standard 

13 90.1–2004 of the American Society of 

14 Heating, Refridgerating, and Air Con15 ditioning Engineers and the Illu16 minating Engineering Society of 

17 North America for Standard 90.1– 

18 2001, each place such standard ap19 pears. 

20 (C) SOLAR ENERGY.—The unit of general 

21 local government shall provide that the portion 

22 of the development costs of any housing that 

23 may be so funded shall be increased by such 

24 percentage as the unit of general local govern25 ment considers appropriate, subject to paraVerDate Aug 31 2005 21:35 Apr 13, 2006 Jkt 049196 PO 00000 Frm 00037 Fmt 6652 Sfmt 6201 E:\BILLS\H5137.IH H5137

rwilkins on PROD1PC63 with BILLS
38 

•HR 5137 IH 

1 graph (2), if the unit of general local govern2 ment determines that such housing complies 

3 with the requirements under section 48(a) of 

4 the Internal Revenue Code of 1986 for an en5 ergy credit, including by use of a passive, ac6 tive, or thermal solar energy system. 

7 (2) PERCENTAGE LIMITATION.—The aggregate 

8 increase for any housing by reason of the operation 

9 of subparagraphs (A) through (C) of paragraph (1) 

10 may not in any case exceed 15 percent. 

11 (j) HOME OWNERSHIP COUNSELING.—Amounts from 

12 a grant under this section may not be used for the develop13 ment of any housing unless the unit of general local gov14 ernment ensures, in accordance with such requirements as 

15 the Secretary shall establish— 

16 (1) that an affordable dwelling unit in such 

17 housing will not be sold to a low- or moderate-in18 come family unless the family has completed home 

19 ownership counseling under a program that meets 

20 the requirements under section 271(c)(2)(C) of the 

21 Cranston-Gonzalez National Affordable Housing Act 

22 (42 U.S.C. 12821(c)(2)(C)); and 

23 (2) that participation in such a program of 

24 home ownership counseling will be made available to 


rwilkins on PROD1PC63 with BILLS
39 

•HR 5137 IH 

1 each such family at cost to such family not exceed2 ing $25. 

3 (k) REPORTING.— 

4 (1) TO SECRETARY.—Each unit of general local 

5 government that receives a grant under this section 

6 shall submit to the Secretary such reports as the 

7 Secretary shall require to determine the uses of 

8 grant amounts provided under this section and the 

9 effectiveness of such uses. Such reports shall contain 

10 such information as the Secretary considers nec11 essary to determine— 

12 (A) the quality and quantity of dwelling 

13 units and affordable dwelling units developed by 

14 a unit of general local government using grant 

15 amounts under this section; 

16 (B) the amount of time taken to develop 

17 such dwelling units; 

18 (C) the number of low- and moderate-in19 come families who have purchased such dwell20 ing units; 

21 (D) the amount of time that such families 

22 continue to reside in such dwelling units; 

23 (E) any benefits to employers and to com24 munities resulting from the development of 

25 such housing that is eligible for the incentive 


rwilkins on PROD1PC63 with BILLS
40 

•HR 5137 IH 

1 under subsection (g)(1), including benefits re2 lating to reducing pollution and motor vehicle 

3 traffic; 

4 (F) any benefits to communities resulting 

5 from the development of any such housing that 

6 is eligible for the incentive under subsection 

7 (g)(2); and 

8 (G) the effects that provision of home own9 ership opportunities in such housing has had on 

10 the tax revenues of units of general local gov11 ernment. 

12 (2) TO CONGRESS.—The Secretary shall submit 

13 a report to the Congress not less than annually re14 garding the program under this section. Such report 

15 shall aggregate and summarize, for the entire pro16 gram, the information submitted in reports to the 

17 Secretary pursuant to paragraph (1). 

18 (l) DEFINITIONS.—For purposes of this section, the 

19 following definitions shall apply: 

20 (1) AFFORDABLE DWELLING UNIT.—The term 

21 ‘‘affordable dwelling unit’’ means a dwelling unit 

22 produced in whole or in part with amounts from a 

23 grant under this section that meets the requirements 

24 of subsection (c). 


rwilkins on PROD1PC63 with BILLS
41 

•HR 5137 IH 

1 (2) DEVELOPMENT COSTS.—The term ‘‘devel2 opment costs’’ means, with respect to housing to be 

3 produced with amounts from a grant under this sec4 tion, costs incurred for any or all undertakings nec5 essary for planning, land acquisition, demolition, 

6 construction, or equipment, including any necessary 

7 financing, and in otherwise carrying out the develop8 ment of such housing, as determined by the Sec9 retary. 

10 (3) LOW-INCOME FAMILY.—The term ‘‘low-in11 come family’’ means a family whose income does not 

12 exceed 80 percent of the median income for the 

13 area, as determined by the Secretary with adjust14 ments for smaller and larger families, except that 

15 the Secretary may establish income ceilings higher 

16 or lower than 80 percent of the median for the area 

17 on the basis of the Secretary’s findings that such 

18 variations are necessary because of prevailing levels 

19 of construction costs or unusually high or low family 

20 incomes. 

21 (4) MODERATE-INCOME FAMILY.—The term 

22 ‘‘moderate-income family’’ means a family who is 

23 not a low-income family and whose income does not 

24 exceed 125 percent of the median income for the 

25 area, as determined by the Secretary with adjustVerDate Aug 31 2005 21:35 Apr 13, 2006 Jkt 049196 PO 00000 Frm 00041 Fmt 6652 Sfmt 6201 E:\BILLS\H5137.IH H5137

rwilkins on PROD1PC63 with BILLS
42 

•HR 5137 IH 

1 ments for smaller and larger families, except that 

2 the Secretary may establish income ceilings higher 

3 or lower than 125 percent of the median for the area 

4 on the basis of the Secretary’s findings that such 

5 variations are necessary because of prevailing levels 

6 of construction costs or unusually high or low family 

7 incomes. 

8 (5) UNIT OF GENERAL LOCAL GOVERNMENT.— 

9 The term ‘‘unit of general local government’’ has the 

10 meaning given such term in section 104 of the Cran11 ston-Gonzalez National Affordable Housing Act (42 

12 U.S.C. 12704). 

13 (6) SECRETARY.—The term ‘‘Secretary’’ means 

14 the Secretary of Housing and Urban Development. 

15 (m) AUTHORIZATION OF APPROPRIATIONS.—There is 

16 authorized to be appropriated to the Secretary for grants 

17 under this section $125,000,000 for each of fiscal years 

18 2007 through 2014. 

19 (n) REGULATIONS.—The Secretary may issue any 

20 regulations necessary to carry out this section. 

Æ 


rwilkins on PROD1PC63 with BILLS