SEC. 5. USE OF MORTGAGE INTEREST SAVINGS TO IN-
CREASE LOW-INCOME HOUSING TAX CREDIT. 
(a) 
IN
GENERAL.—Subclause 
(I) 
of 
section 
42(h)(3)(C)(ii) of the Internal Revenue Code of 1986 is 
amended by striking ‘‘$1.75 ($1.50 for 2001)’’ and insert-
ing ‘‘$2.70’’. 
(b) INFLATION ADJUSTMENT.—Subparagraph (H) of 
section 42(h)(3) of such Code is amended to read as fol-
lows: 
‘‘(H) COST-OF-LIVING ADJUSTMENT.— 
‘‘(i) IN GENERAL.—In the case of a 
calendar year after 2002, the $2,000,000 
amount in subparagraph (C) shall be in-
creased by an amount equal to— 
‘‘(I) such dollar amount, multi-
plied by 
‘‘(II) the cost-of-living adjust-
ment determined under section 1(f)(3) 
for such calendar year by substituting 
‘calendar year 2001’ for ‘calendar 
year 1992’ in subparagraph (B) there-
of. 
‘‘(ii) PER
CAPITA
AMOUNT.—In the 
case of a calendar year after 2014, the 
$2.70 amount in subparagraph (C) shall 
be increased by an amount equal to— 
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‘‘(I) such dollar amount, multi-
plied by 
‘‘(II) the cost-of-living adjust-
ment determined under section 1(f)(3) 
for such calendar year by substituting 
‘calendar year 2013’ for ‘calendar 
year 1992’ in subparagraph (B) there-
of. 
‘‘(iii) ROUNDING.— 
‘‘(I) 
In 
the 
case 
of 
the 
$2,000,000 
amount, 
any 
increase 
under clause (i) which is not a mul-
tiple of $5,000 shall be rounded to the 
next lowest multiple of $5,000. 
‘‘(II) In the case of the $2.70 
amount, any increase under clause (ii) 
which is not a multiple of 5 cents 
shall be rounded to the next lowest 
multiple of 5 cents.’’. 
(c) 
ELIGIBLE
BASIS.—Clause 
(i) 
of 
section 
42(d)(5)(B) of such Code is amended by striking ‘‘and’’ 
at the end of subclause (I), by striking the period at the 
end of subclause (II) and inserting ‘‘, and’’, and by adding 
at the end the following: 
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‘‘(III) in the case of a building 
containing units which are designated 
to serve extremely low-income house-
holds by the State housing credit 
agency and require the increase in 
credit under this subparagraph in 
order for such building to be finan-
cially feasible as part of a qualified 
low-income housing project, the eligi-
ble basis of such building determined 
by the portion of such units shall be 
150 percent of such basis determined 
without 
regard 
to 
this 
subpara-
graph.’’. 
(d) EFFECTIVE DATE.—The amendments made by 
this section shall apply to allocations made in calendar 
years beginning after December 31, 2013. 
SEC. 6. USE OF MORTGAGE INTEREST SAVINGS FOR AF-
FORDABLE HOUSING PROGRAMS. 
(a) USE OF SAVINGS.—For each year, the Secretary 
of the Treasury shall determine the amount of revenues 
accruing to the general fund of the Treasury by reason 
of the enactment of section 3 of this Act that remain after 
use of such revenues in accordance with section 5 of this 
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Act and shall credit an amount equal to such remaining 
revenues as follows: 
(1) HOUSING
TRUST
FUND.—The Secretary 
shall credit the Housing Trust Fund established 
under section 1338 of the Federal Housing Enter-
prises Financial Safety and Soundness Act of 1992 
(12 U.S.C. 4568) with an amount equal to 60 per-
cent of the amount of such remaining revenues. 
(2) SECTION 8 RENTAL ASSISTANCE.—The Sec-
retary shall credit an amount equal to 30 percent of 
the amount of such remaining revenues to the Sec-
retary of Housing and Urban Development for use 
only for providing tenant- and project-based rental 
assistance under section 8 of the United States 
Housing Act of 1937 (42 U.S.C. 1437f). 
(3) PUBLIC
HOUSING
CAPITAL
FUND.—The 
Secretary shall credit an amount equal to 10 percent 
of the amount of such remaining revenues to the 
Public Housing Capital Fund under section 9(d) of 
the United States Housing Act of 1937 (42 U.S.C. 
1437g(d)). 
(b) CHANGES TO HOUSING TRUST FUND.—Not later 
than the expiration of the 6-month period beginning on 
the date of the enactment of this Act, the Secretary of 
Housing and Urban Development shall revise the regula-
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tions relating to the Housing Trust Fund established 
under section 1338 of the Federal Housing Enterprises 
Financial Safety and Soundness Act of 1992 (12 U.S.C. 
4568) to provide that such section is carried out with the 
maximum amount of flexibility possible while complying 
with such section, which shall include revising such regula-
tions— 
(1) to increase the limitation on amounts from 
the Fund that are available for use for operating as-
sistance for housing; 
(2) to allow public housing agencies and tribally 
designated housing entities to be recipient of grants 
amounts from the Fund that are allocated to a State 
or State designated entity; and 
(3) eliminate the applicability of rules for the 
Fund that are based on the HOME Investment 
Partnerships Act (42 U.S.C. 1721 et seq.). 
Æ 
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