occupied housing, purchase of, the dwelling unit is provided 
to families who are eligible for rental assistance under sec-
tion 8 of the United States Housing Act of 1937 (42 U.S.C. 
1437f) or occupancy in public housing assisted under such 
Act, and have applied to a public housing agency for such 
assistance or occupancy, as applicable, and been on a wait-
ing list of a public housing agency for such assistance or 
occupancy, as applicable, for at least 12 consecutive months. 
‘‘SEC. 298. OTHER PROVISIONS. 
‘‘(a) EFFECT OF ASSISTANCE UNDER PROGRAM.—Not-
withstanding any other provision of law, the provision of 
assistance under this subtitle for a project shall not reduce 
the amount of assistance for which such project is otherwise 
eligible under subtitles A through F of this title, if the 
project does not exceed the cost limits established pursuant 
to section 296(e). 
‘‘(b) ACCOUNTABILITY
OF GRANTEES
AND RECIPI-
ENTS.— 
‘‘(1) RECIPIENTS.— 
‘‘(A) TRACKING OF FUNDS.—The Secretary 
shall— 
‘‘(i) require each grantee to develop 
and maintain a system to ensure that each 
recipient of assistance from Trust Fund 
grant amounts of the grantee uses such 
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amounts in accordance with this subtitle, 
the regulations issued under this subtitle, 
and any requirements or conditions under 
which such amounts were provided; and 
‘‘(ii) establish minimum requirements 
for agreements, between the grantee and re-
cipients, regarding assistance from the 
Trust Fund grant amounts of the grantee, 
which shall include— 
‘‘(I) appropriate continuing fi-
nancial and project reporting, record 
retention, and audit requirements for 
the duration of the grant to the recipi-
ent to ensure compliance with the limi-
tations and requirements of this sub-
title and the regulations under this 
subtitle; and 
‘‘(II) any other requirements that 
the Secretary determines are necessary 
to ensure appropriate grant adminis-
tration and compliance. 
‘‘(B) MISUSE OF FUNDS.— 
‘‘(i) 
REIMBURSEMENT
REQUIRE-
MENT.—If any recipient of assistance from 
Trust Fund grant amounts of a grantee is 
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determined, in accordance with clause (ii), 
to have used any such amounts in a man-
ner that is materially in violation of this 
subtitle, the regulations issued under this 
subtitle, or any requirements or conditions 
under which such amounts were provided— 
‘‘(I) such recipient shall be ineli-
gible for any further assistance from 
any Trust Fund grant amounts of any 
grantee during the period that begins 
upon such determination and ends 
upon reinstatement by the Secretary of 
the eligibility of recipient for such as-
sistance, except that the Secretary may 
reinstate such an ineligible recipient 
only pursuant to application by the re-
cipient for such reinstatement and the 
recipient may not apply to the Sec-
retary for such reinstatement during 
the 12-month period, or the 10-year pe-
riod in the case of a second or subse-
quent such determination, beginning 
upon such determination; and 
‘‘(II) the grantee shall require 
that, within 12 months after the deter-
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mination of such misuse, the recipient 
shall reimburse the grantee for such 
misused amounts and return to the 
grantee any amounts from the Trust 
Fund grant amounts of the grantee 
that remain unused or uncommitted 
for use. 
The remedies under this clause are in addi-
tion to any other remedies that may be 
available under law. 
‘‘(ii) DETERMINATION.—A determina-
tion is made in accordance with this clause 
if the determination is— 
‘‘(I) made by the Secretary; or 
‘‘(II)(aa) made by the grantee; 
‘‘(bb) the grantee provides notifi-
cation of the determination to the Sec-
retary for review, in the discretion of 
the Secretary, of the determination; 
and 
‘‘(cc) the Secretary does not subse-
quently reverse the determination. 
‘‘(2) GRANTEES.— 
‘‘(A) REPORT.— 
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‘‘(i) IN GENERAL.—The Secretary shall 
require each grantee receiving Trust Fund 
grant amounts for a fiscal year to submit a 
report, for such fiscal year, to the Secretary 
that— 
‘‘(I) describes the activities funded 
under this subtitle during such year 
with the Trust Fund grant amounts of 
the grantee; and 
‘‘(II) the manner in which the 
grantee complied during such fiscal 
year with the allocation plan estab-
lished pursuant to section 295 for the 
grantee. 
‘‘(ii) PUBLIC AVAILABILITY.—The Sec-
retary shall make such reports pursuant to 
this subparagraph publicly available. 
‘‘(B) MISUSE OF FUNDS.—If the Secretary 
determines, after reasonable notice and oppor-
tunity for hearing, that a grantee has failed to 
comply substantially with any provision of this 
subtitle and until the Secretary is satisfied that 
there is no longer any such failure to comply, the 
Secretary shall— 
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‘‘(i) reduce the amount of assistance 
under this section to the grantee by an 
amount equal to the amount of Trust Fund 
grant amounts which were not used in ac-
cordance with this subtitle; 
‘‘(ii) require the grantee to repay the 
Secretary an amount equal to the amount 
of the Trust Fund grant amounts which 
were not used in accordance with this sub-
title; 
‘‘(iii) limit the availability of assist-
ance under this subtitle to the grantee to ac-
tivities or recipients not affected by such 
failure to comply; or 
‘‘(iv) terminate any assistance under 
this subtitle to the grantee. 
‘‘SEC. 299. DEFINITIONS. 
‘‘For purposes of this subtitle, the following definitions 
shall apply: 
‘‘(1) ELIGIBLE ACTIVITIES.—The term ‘eligible 
activities’ means activities relating to the construc-
tion, preservation, or rehabilitation of affordable rent-
al housing or affordable one- to four-family owner-oc-
cupied housing, including— 
‘‘(A) the construction of new housing; 
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‘‘(B) the acquisition of real property; 
‘‘(C) site preparation and improvement, in-
cluding demolition; 
‘‘(D) rehabilitation of existing housing; 
‘‘(E) use of funds to facilitate affordability 
for homeless and other extremely low-income 
households of dwelling units assisted with Trust 
Fund grant amounts, in a combined amount not 
to exceed 20 percent of the project grant amount, 
for— 
‘‘(i) project-based rental assistance for 
not more than 12 months for a project as-
sisted with Trust Fund grant amounts; 
‘‘(ii) project operating reserves for use 
to cover the loss of rental assistance or in 
conjunction with a project loan; or 
‘‘(iii) project operating accounts used 
to cover net operating income shortfalls for 
dwelling units assisted with Trust Fund 
grant amounts; 
‘‘(F) providing incentives to maintain exist-
ing housing (including manufactured housing) 
as affordable housing and to establish or extend 
any low-income affordability restrictions for 
such housing, including covering capital expend-
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itures and costs of establishing community land 
trusts to provide sites for manufactured housing 
provided such incentives; and 
‘‘(G) in the case of affordable one- to four- 
family owner-occupied housing, downpayment 
assistance, closing cost assistance, and assistance 
for interest rate buy-downs. 
‘‘(2) ELIGIBLE
RECIPIENT.—The term ‘eligible 
recipient’ means an entity that meets the require-
ments under section 296(b) for receipt of Trust Fund 
grant amounts of a grantee. 
‘‘(3) EXTREMELY
LOW
VACANCY
RATE.—The 
term ‘extremely low vacancy rate’ means a housing or 
rental vacancy rate of 2 percent or less. 
‘‘(4) EXTREMELY OLD HOUSING.—The term ‘ex-
tremely old housing’ means housing that is 45 years 
old or older. 
‘‘(5) FAMILIES.—The term ‘families’ has the 
meaning given such term in section 3(b) of the United 
States Housing Act of 1937 (42 U.S.C. 1437a(b)). 
‘‘(6) FISCAL
DISTRESS; SEVERE
FISCAL
DIS-
TRESS.—The terms ‘fiscal distress’ and ‘severe fiscal 
distress’ have the meanings given such terms in sec-
tion 220(d). 
‘‘(7) GRANTEE.—The term ‘grantee’ means— 
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‘‘(A) a State, insular area, or participating 
local jurisdiction for which a grant is made 
under section 294(e); 
‘‘(B) an Indian tribe for which a grant is 
made under section 294(g); or 
‘‘(C) a nonprofit or public entity for which 
a grant is made under section 294(i). 
‘‘(8) INDIAN
TRIBE.—The term ‘Indian tribe’ 
means a federally recognized Indian tribe. 
‘‘(9) INSULAR AREA.—The term ‘insular area’ 
has the meaning given such term in section 104. 
‘‘(10) PARTICIPATING
LOCAL
JURISDICTION.— 
The term ‘participating local jurisdiction’ means, 
with respect to a fiscal year— 
‘‘(A) any unit of general local government 
(as such term is defined in section 104 (42 
U.S.C. 12704) that qualifies as a participating 
jurisdiction under section 216 (42 U.S.C. 12746) 
for such fiscal year; and 
‘‘(B) at the option of such a consortium, 
any consortium of units of general local govern-
ments that is designated pursuant to section 216 
(42 U.S.C. 12746) as a participating jurisdic-
tion for purposes of title II. 
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‘‘(11) POVERTY LINE.—The term ‘poverty line’ 
has the meaning given such term in section 673(2) of 
the Omnibus Budget Reconciliation Act of 1981, in-
cluding any revision required by such section. 
‘‘(12) RECIPIENT.—The term ‘recipient’ means 
an entity that receives assistance from a grantee, pur-
suant to section 296(a), from Trust Fund grant 
amounts of the grantee. 
‘‘(13) RURAL AREA.—The term ‘rural area’ has 
the meaning given such term in section 520 of the 
Housing Act of 1949 (42 U.S.C. 1490). 
‘‘(14) SECRETARY.—The term ‘Secretary’ means 
the Secretary of Housing and Urban Development. 
‘‘(15) STATE.—The term ‘State’ has the meaning 
given such term in section 104. 
‘‘(16) TRUST
FUND.—The term ‘Trust Fund’ 
means the National Affordable Housing Trust Fund 
established under section 292. 
‘‘(17) TRUST FUND GRANT AMOUNTS.—The term 
‘Trust Fund grant amounts’ means amounts from the 
Trust Fund that are provided to a grantee pursuant 
to subsection (e), (g), or (i) of section 294. 
‘‘SEC. 299A. INAPPLICABILITY OF HOME PROVISIONS. 
‘‘Except as specifically provided otherwise in this sub-
title, no requirement under, or provision of, title I or sub-
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titles A through F of this title shall apply to assistance pro-
vided under this subtitle. 
‘‘SEC. 299B. REGULATIONS. 
‘‘Not later than 6 months after the date of enactment 
of the National Affordable Housing Trust Fund Act of 2007, 
the Secretary of Housing and Urban Development shall 
promulgate regulations to carry out this subtitle, which 
shall include regulations establishing the affordable housing 
needs formula in accordance with section 294(a).’’. 
(b) CONFORMING AMENDMENT.—Section 201 of the 
Cranston-Gonzalez National Affordable Housing Act (42 
U.S.C. 12701 note) is amended by striking ‘‘This title’’ and 
inserting ‘‘Subtitles A through F of this title’’. 
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Union Calendar No. 222 
110TH CONGRESS 
1ST SESSION 
H. R. 2895 
[Report No. 110–362] 
A BILL 
To establish the National Affordable Housing Trust 
Fund in the Treasury of the United States to 
provide for the construction, rehabilitation, and 
preservation of decent, safe, and affordable hous-
ing for low-income families. 
OCTOBER 2, 2007 
Reported with an amendment, committed to the Com-
mittee of the Whole House on the State of the Union, 
and ordered to be printed 
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