IB 
Union Calendar No. 222 
110TH CONGRESS 
1ST SESSION H. R. 2895 
[Report No. 110–362] 
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 housing for low-income fami-
lies. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 28, 2007 
Mr. FRANK of Massachusetts (for himself, Ms. WATERS, Mr. GARY G. MIL-
LER of California, Mr. RAMSTAD, Ms. VELA´ZQUEZ, Mr. MCHUGH, Mr. 
ENGLISH of Pennsylvania, Mr. AL GREEN of Texas, Mr. SHAYS, Mr. 
MURPHY of Connecticut, Mr. DENT, Ms. LEE, Mr. RENZI, Mr. CLAY, Mr. 
SMITH of New Jersey, Mr. LYNCH, and Mr. HINOJOSA) introduced the 
following bill; which was referred to the Committee on Financial Services 
OCTOBER 2, 2007 
Additional sponsors: Mr. PAYNE, Mr. WALSH of New York, Mr. EMANUEL, 
Mr. WELCH of Vermont, Mr. HINCHEY, Mr. KILDEE, Mr. LARSON of 
Connecticut, Mr. FARR, Ms. MCCOLLUM of Minnesota, Mr. ABER-
CROMBIE, Mr. MICHAUD, Ms. EDDIE BERNICE JOHNSON of Texas, Mr. 
BLUMENAUER, Mr. CLEAVER, Mr. ELLISON, Mr. BARROW, Ms. BALD-
WIN, Ms. CASTOR, Mrs. EMERSON, Mr. GILCHREST, Mr. JACKSON of Illi-
nois, Ms. MOORE of Wisconsin, Mr. ALLEN, Mr. GRIJALVA, Mrs. 
MALONEY of New York, Mr. WATT, Ms. CARSON, Mr. SHERMAN, Mr. 
CROWLEY, Ms. KAPTUR, Mr. GEORGE MILLER of California, Ms. ZOE 
LOFGREN of California, Mr. NADLER, Mr. RUSH, Mr. SCOTT of Virginia, 
Mr. RYAN of Ohio, Mrs. JONES of Ohio, Mr. CAPUANO, Mr. COHEN, Mr. 
HONDA, Ms. CLARKE, Mr. PASTOR, Mrs. MCCARTHY of New York, Ms. 
WATSON, Mr. DELAHUNT, Mr. COURTNEY, Mr. MCGOVERN, Mrs. CAPPS, 
Mr. KUCINICH, Mrs. DAVIS of California, Mr. ISRAEL, Ms. WOOLSEY, 
Mr. KIND, Ms. SCHAKOWSKY, Mr. WAXMAN, Mr. MCDERMOTT, Mr. RAN-
GEL, Mr. DAVIS of Illinois, Mr. MATHESON, Mr. VAN HOLLEN, Mr. 
PALLONE, Mr. UPTON, Mr. WALZ of Minnesota, Mr. KENNEDY, Mr. 
OBERSTAR, Mr. SIRES, Mr. LEWIS of Georgia, Ms. LORETTA SANCHEZ 
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of California, Mr. LINCOLN DAVIS of Tennessee, Mr. NEAL of Massachu-
setts, Mr. GUTIERREZ, Mr. STARK, Mr. PETERSON of Minnesota, Mr. 
MCINTYRE, Mr. PRICE of North Carolina, Mr. GONZALEZ, Mr. THOMP-
SON of Mississippi, Mr. MORAN of Virginia, Mr. DOGGETT, Mr. ROSS, 
Ms. SHEA-PORTER, Ms. DELAURO, Mr. ARCURI, Mr. BRALEY of Iowa, 
Mr. ORTIZ, Mr. KAGEN, and Ms. DEGETTE 
OCTOBER 2, 2007 
Reported with an amendment, committed to the Committee of the Whole 
House on the State of the Union, and ordered to be printed 
[Strike out all after the enacting clause and insert the part printed in italic] 
[For text of introduced bill, see copy of bill as introduced on June 28, 2007] 
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 de-
cent, safe, and affordable housing for low-income fami-
lies. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled, 
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘National Affordable 
Housing Trust Fund Act of 2007’’. 
SEC. 2. NATIONAL AFFORDABLE HOUSING TRUST FUND. 
(a) IN GENERAL.—Title II of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12721 et seq.) 
is amended by adding at the end the following new subtitle: 
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‘‘Subtitle G—National Affordable 
Housing Trust Fund 
‘‘SEC. 291. PURPOSES. 
‘‘The purposes of this subtitle are— 
‘‘(1) to address the national shortage of housing 
that is affordable to low-income families by creating 
a permanently appropriated fund, with dedicated 
sources of funding, to finance additional housing ac-
tivities, without supplanting existing housing appro-
priations or existing State and local funding for af-
fordable housing; 
‘‘(2) to enable rental housing to be built, for fam-
ilies with the greatest economic need, in mixed-income 
settings and in areas with the greatest economic op-
portunities; 
‘‘(3) to promote ownership of one-to-four family 
owner-occupied housing by low-income families; and 
‘‘(4) to construct, rehabilitate, and preserve at 
least 1,500,000 affordable dwelling units over the next 
decade. 
‘‘SEC. 292. TRUST FUND. 
‘‘(a) ESTABLISHMENT.—There is established in the 
Treasury of the United States a trust fund to be known 
as the National Affordable Housing Trust Fund. 
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‘‘(b) DEPOSITS TO TRUST FUND.—The Trust Fund 
shall consist of— 
‘‘(1) any amounts of the Federal National Mort-
gage Association and the Federal Home Loan Mort-
gage Corporation transferred to the Trust Fund under 
title XIII of the Housing and Community Develop-
ment Act of 1992; 
‘‘(2) any amounts appropriated to the Trust 
Fund pursuant to the authorization in the Expand-
ing American Homeownership Act of 2007, relating 
to the use of FHA savings for an affordable housing 
grant fund; and 
‘‘(3) any amounts as are or may be appro-
priated, transferred, or credited to such Fund under 
any other provisions of law. 
‘‘(c) EXPENDITURES FROM TRUST FUND.—Amounts 
in the Trust Fund shall be available to the Secretary of 
Housing and Urban Development, and are hereby appro-
priated, for providing assistance under this subtitle. 
‘‘(d) FEDERAL ASSISTANCE.—All assistance provided 
using amounts in the Trust Fund shall be considered to 
be Federal financial assistance. 
‘‘(e) CONDITIONS ON USE OF FHA SAVINGS.— 
‘‘(1) USE.—For each fiscal year, no funds may 
be made available under paragraph (2) of subsection 
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(b) unless the amount equal to the net increase for 
such fiscal year in the negative credit subsidy for the 
mortgage insurance programs under title II of the 
National Housing Act resulting from the Expanding 
American Homeownership Act of 2007, and the 
amendments made by such Act, is first made avail-
able for the following purposes in the following 
amounts: 
‘‘(A) SINGLE FAMILY HOUSING MORTGAGE 
INSURANCE.—For each fiscal year, for costs (as 
such term is defined in section 502 of the Federal 
Credit Reform Act of 1990 (2 U.S.C. 661a)) of 
mortgage insurance provided pursuant to section 
203(b) of the National Housing Act (12 U.S.C. 
1709(b)), the additional amount (not including 
any costs of such mortgage insurance resulting 
from this Act or the amendments made by this 
Act), if any, necessary to ensure that the credit 
subsidy cost of such mortgage insurance for such 
fiscal year is $0. 
‘‘(B) HOUSING COUNSELING.—For each of 
fiscal years 2008 through 2012, the amount need-
ed to increase funding, for the housing coun-
seling program under section 106 of the Housing 
and Urban Development Act of 1968 (12 U.S.C. 
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1701x), in connection with homebuyers and 
homeowners with mortgages insured under title 
II of the National Housing Act, from the amount 
appropriated for the preceding fiscal year to 
$100,000,000. 
‘‘(C) MORTGAGE INSURANCE TECHNOLOGY, 
PROCEDURES, PROCESSES, PROGRAM PERFORM-
ANCE, AND SALARIES.—For each of fiscal years 
2008 through 2012, $25,000,000 for increasing 
funding for the purpose of improving technology, 
procedures, processes, and program performance, 
and salaries in connection with the mortgage in-
surance programs under title II of the National 
Housing Act. 
‘‘(2) EXCLUSION OF EARNINGS FROM THE SIN-
GLE
FAMILY
MORTGAGE
INSURANCE
PROGRAM.—No 
funds under paragraph (2) of subsection (b) for a fis-
cal year may be derived from the negative credit sub-
sidy cost for such fiscal year, if any, for mortgage in-
surance provided pursuant to section 203(b) of the 
National Housing Act. 
‘‘(3) CERTIFICATION.—No funds may be made 
available under paragraph (2) of subsection (b) for 
any fiscal year unless the Secretary of Housing and 
Urban Development has, by rule making in accord-
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ance with section 553 of title 5, United States Code 
(notwithstanding subsections (a)(2), (b)(B), and 
(d)(3) of such section), made a determination that 
premiums being, or to be, charged during such fiscal 
year for mortgage insurance under title II of the Na-
tional Housing Act are established at the minimum 
amount sufficient to comply with the requirements of 
section 205(f) of such Act (relating to required capital 
ratio for the Mutual Mortgage Insurance Fund) and 
ensure the safety and soundness of the other mortgage 
insurance funds under such Act, and any negative 
credit subsidy for such fiscal year resulting from such 
mortgage insurance programs adequately ensures the 
efficient delivery and availability of such programs. 
‘‘(4) LIMITATION ON MORTGAGE INSURANCE PRE-
MIUM INCREASES.—Notwithstanding any other provi-
sion of law— 
‘‘(A) the premiums charged for mortgage in-
surance under any program under the National 
Housing Act may not be increased above the pre-
mium amounts in effect under such program on 
October 1, 2006, unless the Secretary of Housing 
and Urban Development determines that, absent 
such increase, insurance of additional mortgages 
under such program would, under the Federal 
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Credit Reform Act of 1990, require the appro-
priation of new budget authority to cover the 
costs (as such term is defined in section 502 of 
the Federal Credit Reform Act of 1990 (2 U.S.C. 
661a) of such insurance; and 
‘‘(B) a premium increase pursuant to para-
graph (1) may be made only by rule making in 
accordance with the procedures under section 553 
of title 5, United States Code (notwithstanding 
subsections (a)(2), (b)(B), and (d)(3) of such sec-
tion). 
‘‘SEC. 293. ALLOCATIONS FOR STATES, INDIAN TRIBES, IN-
SULAR AREAS, AND PARTICIPATING LOCAL 
JURISDICTIONS. 
‘‘(a) DETERMINATION OF AMOUNT AVAILABLE FOR 
FISCAL YEAR.—For fiscal year 2008 and for each fiscal 
year thereafter, the Secretary shall determine the total 
amount available from the Trust Fund pursuant to section 
292(c) for assistance under this subtitle and shall use such 
amount to provide such assistance for such fiscal year. 
‘‘(b) ALLOCATION.—For each such fiscal year, of such 
total amount available from the Trust Fund, the Secretary 
shall allocate for use under section 294— 
‘‘(1) 40 percent for States, Indian tribes, and in-
sular areas; and 
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‘‘(2) 60 percent for participating local jurisdic-
tions. 
‘‘SEC. 294. ASSISTANCE FROM TRUST FUND. 
‘‘(a) AFFORDABLE HOUSING NEEDS FORMULA.— 
‘‘(1) ESTABLISHMENT AND FACTORS.—The Sec-
retary shall establish a formula to allocate amounts 
made available for a fiscal year for assistance under 
this subtitle among States, all Indian tribes, insular 
areas, and participating local jurisdictions based on 
the relative needs of such entities, for funds to in-
crease the supply of decent quality affordable housing. 
The formula shall be based upon a comparison of the 
following factors with respect to each State, Indian 
tribes, each insular area, and each participating local 
jurisdiction: 
‘‘(A) The ratio of the population of the 
State, Indian tribes, insular area, or partici-
pating jurisdiction, to the aggregate population 
of all States, Indian tribes, insular areas, and 
participating jurisdictions. 
‘‘(B) The percentage of families in the juris-
diction of the State, of Indian tribes, or of the 
insular area or participating jurisdiction that 
live in substandard housing. 
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‘‘(C) The percentage of families in the juris-
diction of the State, of Indian tribes, or of the 
insular area or participating jurisdiction that 
pay more than 50 percent of their annual in-
come for housing costs. 
‘‘(D) The percentage of persons in the juris-
diction of the State, of Indian tribes, or of the 
insular area or participating jurisdiction having 
an income at or below the poverty line. 
‘‘(E) The cost of constructing or carrying 
out rehabilitation of housing in the jurisdiction 
of the State, of Indian tribes, or of the insular 
area or participating jurisdiction. 
‘‘(F) The percentage of the population of the 
State, of Indian tribes, or of the insular area or 
participating jurisdiction that resides in coun-
ties having extremely low vacancy rates. 
‘‘(G) The percentage of housing stock in the 
jurisdiction of the State, of Indian tribes, or of 
the insular area or participating jurisdiction 
that is extremely old housing. 
‘‘(H) For the jurisdiction of a State, of In-
dian tribes, or of an insular area or partici-
pating jurisdiction that has an extremely low 
percentage of affordable rental housing, the ex-
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tent to which the State, Indian tribes, or the in-
sular area or participating jurisdiction has in 
the preceding fiscal year increased the percentage 
of rental housing within its jurisdiction that is 
affordable housing. 
‘‘(I) Any other factors that the Secretary de-
termines to be appropriate. 
‘‘(2) FAILURE TO ESTABLISH.—If, in any fiscal 
year referred to in section 293(a), the regulations es-
tablishing the formula required under paragraph (1) 
of this subsection have not been issued by the date 
that the Secretary determines the total amount avail-
able from the Trust Fund for assistance under this 
subtitle for such fiscal year pursuant to section 
292(c), or there has been enacted before such date a 
joint resolution expressly disapproving the use of the 
formula required under paragraph (1) and submitted 
to the Congress pursuant to paragraph (3), for pur-
poses of such fiscal year— 
‘‘(A) section 293(b), paragraphs (2) and (3) 
of subsection (b) of this section, and subsection 
(c) of this section shall not apply; 
‘‘(B) the allocation for Indian tribes shall 
be such amount as the Secretary shall establish; 
and 
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‘‘(C) the formula amount for each State, in-
sular area, or participating local jurisdiction 
shall be determined by applying, for such State, 
insular area, or participating local jurisdiction, 
the percentage that is equal to the percentage of 
the total amounts made available for such fiscal 
year for allocation under subtitle A of this title 
(42 U.S.C. 12741 et seq.) that are allocated in 
such year, pursuant to such subtitle, to such 
State, insular area, or participating local juris-
diction, respectively, and the allocation for each 
State, insular area, or participating jurisdic-
tion, for purposes of subsection (e) shall, except 
as provided in subsection (d), be the formula 
amount for the State, insular area, or partici-
pating jurisdiction, respectively. 
‘‘(3) 
SUBMISSION
TO
CONGRESS.—Notwith-
standing any other provision of this subtitle, any for-
mula established by the Secretary pursuant to this 
subsection shall be submitted to the Committee on Fi-
nancial Services of the House of Representatives and 
the Committee on Banking, Housing, and Urban Af-
fairs of the Senate not less than 120 days before ap-
plication of the formula for purposes of determining 
formula amounts under subsection (b) for a fiscal 
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year. Such submission shall be accompanied by a de-
tailed explanation of the factors under the formula 
and anticipated effects of the formula. 
‘‘(b) FORMULA AMOUNT.— 
‘‘(1) IN GENERAL.—For each fiscal year referred 
to in section 293(a), the Secretary shall determine the 
formula amount under this subsection for each State, 
for Indian tribes, for each insular area, and for each 
participating local jurisdiction. 
‘‘(2) STATES, INDIAN
TRIBES, AND
INSULAR 
AREAS.—The formula amount for each State, for In-
dian tribes, and for each insular area shall be the 
amount determined for such State, for Indian tribes, 
or for such insular area by applying the formula 
under subsection (a) of this section to the total 
amount allocated under section 293(b)(1) for all 
States, Indian tribes, and insular areas for the fiscal 
year. 
‘‘(3) PARTICIPATING
LOCAL
JURISDICTIONS.— 
The formula amount for each participating local ju-
risdiction shall be the amount determined for such 
participating local jurisdiction by applying the for-
mula under subsection (a) of this section to the total 
amount allocated under section 293(b)(2) for all par-
ticipating local jurisdictions for the fiscal year. 
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‘‘(4) NOTICE.—For each fiscal year referred to in 
section 293(a), not later than 60 days after the date 
that the Secretary determines the total amount avail-
able from the Trust Fund for such fiscal year pursu-
ant to section 292(c) for assistance under this subtitle, 
the Secretary shall cause to be published in the Fed-
eral Register a notice that such amounts shall be so 
available. 
‘‘(c) ALLOCATION BASED ON AFFORDABLE HOUSING 
NEEDS FORMULA.—The allocation under this subsection for 
a State, for Indian tribes, for an insular area, or for a 
local participating jurisdiction for a fiscal year shall be de-
termined as follows: 
‘‘(1) STATES.—Subject to subsection (d), the allo-
cation for a State shall be the formula amount for the 
State. 
‘‘(2) INDIAN TRIBES AND INSULAR AREAS.—The 
allocation for Indian tribes and for each insular area 
shall be the formula amount for Indian tribes or for 
the insular area, respectively, determined under sub-
section (b), as applicable. 
‘‘(3) PARTICIPATING
LOCAL
JURISDICTIONS.— 
Subject to subsection (d), the allocation for each par-
ticipating local jurisdiction shall be the formula 
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amount for the jurisdiction determined under sub-
section (b). 
‘‘(d) ALLOCATION EXCEPTION FOR YEARS IN WHICH 
LESS THAN $2 BILLION IS AVAILABLE.—If, for any fiscal 
year, the total amount available pursuant to section 293(a) 
for 
assistance 
under 
this 
subtitle 
is 
less 
than 
$2,000,000,000— 
‘‘(1) for each participating local jurisdiction 
having a formula amount of less than $750,000, the 
allocation shall be $0, except that if the Secretary 
finds that the jurisdiction has demonstrated a capac-
ity to carry out provisions of this subtitle and the 
State in which such jurisdiction is located has au-
thorized the Secretary to transfer to the jurisdiction 
a portion of the State’s allocation that is equal to or 
greater than the difference between the jurisdiction’s 
formula amount and $750,000, or the State or juris-
diction has made available such an amount from the 
State’s or jurisdiction’s own sources available for use 
by the jurisdiction in accordance with this subtitle, 
the jurisdiction’s allocation for a fiscal year shall be 
the formula amount for the jurisdiction; and 
‘‘(2) in the case of any jurisdiction whose alloca-
tion is $0 by operation of paragraph (1), the alloca-
tion for the State in which such participating local 
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jurisdiction is located shall be increased by the 
amount of the formula amount for the participating 
local jurisdiction. 
Any adjustments pursuant to paragraphs (1) and (2) shall 
be made notwithstanding the allocation percentages under 
section 293(b). 
‘‘(e) GRANT AWARDS.—For each fiscal year referred to 
in section 293(a), using the amounts made available to the 
Secretary from the Trust Fund for such fiscal year under 
section 292(c), the Secretary shall, subject to subsection (f), 
make a grant to each State, insular area, and participating 
local jurisdiction in the amount of the allocation under sub-
section (a)(2), (c), or (d), as applicable, for the State, area, 
or jurisdiction, respectively. 
‘‘(f) MATCHING REQUIREMENT.— 
‘‘(1) IN
GENERAL.—Each grantee for a fiscal 
year shall contribute to eligible activities funded with 
Trust Fund grant amounts, or require the contribu-
tion to such eligible activities by recipients of such 
Trust Fund grant amounts of, in addition to any 
such grant amounts, not less than the following 
amount: 
‘‘(A) STATE, 
LOCAL, 
OR
PRIVATE
RE-
SOURCES.—To the extent that such contributed 
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amounts are derived from State, local, or private 
resources, 12.5 percent of such grant amounts. 
‘‘(B) FEDERAL
AMOUNTS.—To the extent 
that such contributed amounts are derived from 
State- or locally-controlled amounts from Federal 
assistance, or from amounts made available 
under the affordable housing program of a Fed-
eral Home Loan Bank pursuant to section 10(j) 
of the Federal Home Loan Bank Act (12 U.S.C. 
1430(j)), 25 percent of such grant amounts. 
Nothing in this paragraph may be construed to pre-
vent a grantee or recipient from complying with this 
paragraph only by contributions in accordance with 
subparagraph (A), only by contributions in accord-
ance with subparagraph (B), or by a combination of 
such contributions. 
‘‘(2) REDUCTION OR WAIVER FOR RECIPIENTS IN 
FISCAL
DISTRESS.—The Secretary may reduce or 
waive the requirement under paragraph (1) with re-
spect to any grantee that the Secretary determines, 
pursuant to such demonstration by the recipient as 
the Secretary shall require, is in fiscal distress. The 
Secretary shall make determinations regarding fiscal 
distress for purposes of this paragraph in the same 
manner, and according to the same criteria, as fiscal 
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