I
104TH CONGRESS
1ST SESSION
H. R. 1016
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
FEBRUARY 22, 1995
Mr. OWENS (for himself, Mr. HINCHEY, Mr. MCDERMOTT, Ms. VELA´ZQUEZ,
and Mr. FORD) introduced the following bill; which was referred to the
Committee on Ways and Means and, in addition, to the Committee on
Banking and Financial Services, for a period to be subsequently deter-
mined by the Speaker, in each case for consideration of such provisions
as fall within the jurisdiction of the committee concerned
A BILL
To establish a Federal Housing Trust Fund to provide de-
cent, safe, and affordable housing for low-income families
lacking such housing.
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE AND TABLE OF CONTENTS.
(a) SHORT TITLE.—This Act may be cited as the
‘‘Federal Housing Trust Fund Act of 1995’’.
(b) TABLE OF CONTENTS.—The table of contents for
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
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 EN-
TITLEMENT PROGRAM FOR FORMULA GRANTS FOR AFFORD-
ABLE 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 commu-
nities, 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.
TITLE I—REDUCTION OF CER-
TAIN 
TAX 
BENEFITS 
FOR
HIGHER INCOME TAXPAYERS
AND 
ESTABLISHMENT 
OF
HOUSING TRUST FUND
SEC. 101. REDUCTION OF CERTAIN TAX BENEFITS FOR
HIGHER INCOME TAXPAYERS.
(a) IN GENERAL.—Part I of subchapter B of chapter
1 of the Internal Revenue Code of 1986 (relating to defini-
tion of gross income, adjusted gross income, taxable in-
come, etc.) is amended by adding at the end the following
new section:
‘‘SEC. 69. LIMITATION ON CERTAIN TAX BENEFITS FOR
HIGHER INCOME TAXPAYERS.
‘‘(a) IN GENERAL.—In the case of an individual, the
limitations of this section apply if the taxpayer’s modified
adjusted gross income for the taxable year exceeds
$75,000.
‘‘(b) LIMITATIONS ON DEDUCTION FOR MORTGAGE
INTEREST AND PROPERTY TAXES.—In the case of a tax-
payer to whom this section applies for the taxable year—
‘‘(1) the amount of qualified residence interest
(as defined in section 163(h)(3)) which is allowed as
a deduction under section 163 shall not exceed the
applicable percentage of such interest, and
‘‘(2) the amount of real property taxes which is
allowed as a deduction under section 164 shall not
exceed the applicable percentage of such taxes.
‘‘(c) APPLICABLE PERCENTAGE.—For purposes of
this section—
‘‘(1) IN GENERAL.—The term ‘applicable per-
centage’ means 100 percent reduced (but not below
the 50 percent) by 3 percentage points for each
$1,000 by which the modified adjusted gross income