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may be used for administrative costs of the grantee 
of carrying out the program required under this sub-
title to a percentage of such grant amounts of the 
grantee for such fiscal year, which may not exceed 
10 percent. 
‘‘(i) LABOR STANDARDS.—Each grantee receiving 
Trust Fund grant amounts shall ensure that contracts for 
eligible activities assisted with such amounts comply with 
the same requirements under section 286 (42 U.S.C. 
12836) that are applicable to contracts for construction 
of affordable housing assisted under subtitles A and D. 
‘‘(j) COMPLIANCE WITH OTHER FEDERAL LAWS.— 
All amounts from the Trust Fund shall be allocated in 
accordance with, and any eligible activities carried out in 
whole or in part with grant amounts under this subtitle 
(including housing provided with such grant amounts) 
shall comply with and be operated in compliance with, 
other applicable provisions of Federal law, including— 
‘‘(1) laws relating to tenant protections and 
tenant rights to participate in decision making re-
garding their residences; 
‘‘(2) laws requiring public participation, includ-
ing laws relating to Consolidated Plans, Qualified 
Allocation Plans, and Public Housing Agency Plans; 
and 
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‘‘(3) fair housing laws and laws regarding ac-
cessibility in federally assisted housing, including 
section 504 of the Rehabilitation Act of 1973. 
‘‘SEC. 297. AFFORDABLE HOUSING. 
‘‘(a) RENTAL HOUSING.—A rental dwelling unit 
(which may include a dwelling unit in limited equity coop-
erative housing, as such term is defined in section 143(k) 
of the Internal Revenue Code of 1986 (26 U.S.C. 143(k)) 
or in housing of a cooperative housing corporation, as such 
term is defined in section 216(b) of the Internal Revenue 
Code of 1986 (26 U.S.A. 216(b))), shall be considered af-
fordable housing for purposes of this subtitle only if the 
dwelling unit is subject to legally binding commitments 
that ensure that the dwelling unit meets all of the fol-
lowing requirements: 
‘‘(1) RENTS.—The dwelling unit bears a rent 
not greater than the lesser of— 
‘‘(A) the existing fair market rental estab-
lished by the Secretary under section 8(c) of 
the United States Housing Act of 1937 (42 
U.S.C. 1437f(c)) for a dwelling unit of the 
same size in the same market area, or the ap-
plicable payment standard for assistance under 
section 8(o) of such Act, if higher; and 
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‘‘(B) a rent that does not exceed 30 per-
cent of the adjusted income of a family whose 
income equals 65 percent of the median income 
for the area, as determined by the Secretary, 
with adjustment for number of bedrooms in the 
unit, except that the Secretary may establish 
income ceilings higher or lower than 65 percent 
of the median for the area on the basis of the 
findings of the Secretary that such variations 
are necessary because of prevailing levels of 
construction costs or fair market rents, or un-
usually high or low family incomes. 
‘‘(2) TENANT RENT CONTRIBUTION.—The con-
tribution toward rent by the family residing in the 
dwelling unit will not exceed 30 percent of the ad-
justed income of such family. 
‘‘(3) NON-DISCRIMINATION AGAINST VOUCHER 
HOLDERS.—The dwelling unit is located in a project 
in which all dwelling units are subject to enforceable 
restrictions that provide that a unit may not be re-
fused for leasing to a holder of a voucher of eligi-
bility under section 8 of the United States Housing 
Act of 1937 (42 U.S.C. 1437f) because of the status 
of the prospective tenant as a holder of such vouch-
er. 
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‘‘(4) MIXED INCOME.— 
‘‘(A) IN GENERAL.—The dwelling unit is 
located in a project: (i) that receives assistance 
under this subtitle; and (ii) for which not more 
than 50 percent of the rental units in the 
project that are not previously occupied may be 
rented initially only to families with incomes de-
scribed in section 296(c)(2), as determined at a 
reasonable time before occupancy. 
‘‘(B) REHABILITATION.—In the case of a 
dwelling unit in a project for which Trust Fund 
grant amounts are used for the rehabilitation of 
the project, the dwelling unit is located in a 
project in which the percentage of units being 
rented upon completion of the rehabilitation to 
families with incomes described in section 
296(c)(2) may not exceed the higher of 50 per-
cent or the percentage of such families occu-
pying the project at the time funds are awarded 
for such project. 
‘‘(C) 
EXCEPTIONS.—Subparagraph 
(A) 
shall not apply in the case of a project that— 
‘‘(i) has 25 or fewer dwelling units 
and that is— 
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‘‘(I) located in a census tract in 
which the number of families having 
incomes less than the poverty line is 
less than 20 percent; 
‘‘(II) located in a rural area, as 
such term is defined in section 520 of 
the Housing Act of 1949 (42 U.S.C. 
1490); or 
‘‘(III) specifically made available 
only for households comprised of dis-
abled families; or 
‘‘(ii) is specifically made available only 
for households comprised of elderly fami-
lies. 
‘‘(5) VISITABILITY.—To the extent the dwelling 
unit is not required under Federal law to comply 
with standards relating to accessibility to persons 
with disabilities, the dwelling unit complies with 
such basic visitability standards as the Secretary 
shall by regulation provide. 
‘‘(6) DURATION
OF
USE.—The dwelling unit 
will continue to be subject to all requirements under 
this subsection for not less than 50 years. 
‘‘(b) OWNER-OCCUPIED HOUSING.—For purposes of 
any eligible activity involving one- to four-family owner- 
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