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‘‘(A) are contributing, or would contribute, 
to the financial instability of the enterprise; 
‘‘(B) are causing, or would cause, the en-
terprise to be classified as undercapitalized; or 
‘‘(C) are preventing, or would prevent, the 
enterprise from successfully completing a cap-
ital restoration plan under section 1369C. 
‘‘(3) 5-YEAR SUNSET AND REPORT.— 
‘‘(A) SUNSET.—The enterprises shall not 
be required to make allocations to the afford-
able housing fund in 2012 or in any year there-
after. 
‘‘(B) REPORT
ON
PROGRAM
CONTINU-
ANCE.—Not later than June 30, 2011, the Di-
rector shall submit to the Committee on Finan-
cial Services of the House of Representatives 
and the Committee on Banking, Housing, and 
Urban Affairs of the Senate a report making 
recommendations on whether the program 
under this section, including the requirement 
for the enterprises to make allocations to the 
affordable housing fund, should be extended 
and on any modifications for the program. 
‘‘(4) PROHIBITION OF PASS-THROUGH OF COST 
OF ALLOCATIONS.—The Director shall, by regula-
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tion, prohibit each enterprise from redirecting such 
costs, through increased charges or fees, or de-
creased premiums, or in any other manner, to the 
originators of mortgages purchased or securitized by 
the enterprise. 
‘‘(c) AFFORDABLE HOUSING NEEDS FORMULAS.— 
‘‘(1) ALLOCATION FOR 2007.— 
‘‘(A) 
ALLOCATION
PERCENTAGES
FOR 
LOUISIANA AND MISSISSIPPI.—For purposes of 
subsection (d)(1)(A), the allocation percentages 
for 2007 for the grantees under this section for 
such year shall be as follows: 
‘‘(i) The allocation percentage for the 
Louisiana Housing Finance Agency shall 
be 75 percent. 
‘‘(ii) The allocation percentage for the 
Mississippi Development Authority shall be 
25 percent. 
‘‘(B) USE
IN
DISASTER
AREAS.—Afford-
able housing grant amounts for 2007 shall be 
used only as provided in subsection (g) only for 
such eligible activities in areas that were sub-
ject to a declaration by the President of a 
major disaster or emergency under the Robert 
T. Stafford Disaster Relief and Emergency As-
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sistance Act (42 U.S.C. 5121 et seq.) in con-
nection with Hurricane Katrina or Rita of 
2005. 
‘‘(2) 
ALLOCATION
FORMULA
FOR
OTHER 
YEARS.—The Secretary of Housing and Urban De-
velopment shall, by regulation, establish a formula to 
allocate, among the States (as such term is defined 
in section 1303) and federally recognized Indian 
tribes, the amounts provided by the enterprises in 
each year referred to subsection (b)(1), other than 
2007, to the affordable housing fund established 
under this section. The formula shall be based on 
the following factors, with respect to each State and 
tribe: 
‘‘(A) The ratio of the population of the 
State or federally recognized Indian tribe to the 
aggregate population of all the States and 
tribes. 
‘‘(B) The percentage of families in the 
State or federally recognized Indian tribe that 
pay more than 50 percent of their annual in-
come for housing costs. 
‘‘(C) The percentage of persons in the 
State or federally recognized Indian tribe that 
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are members of extremely low- or very low-in-
come families. 
‘‘(D) The cost of developing or carrying 
out rehabilitation of housing in the State or for 
the federally recognized Indian tribe. 
‘‘(E) The percentage of families in the 
State or federally recognized Indian tribe that 
live in substandard housing. 
‘‘(F) The percentage of housing stock in 
the State or for the federally recognized Indian 
tribe that is extremely old housing. 
‘‘(G) Any other factors that the Secretary 
determines to be appropriate. 
‘‘(3) FAILURE TO ESTABLISH.—If, in any year 
referred to in subsection (b)(1), other than 2007, 
the regulations establishing the formula required 
under paragraph (2) of this subsection have not 
been issued by the date that the Director determines 
the amounts described in subsection (d)(1) to be 
available for affordable housing fund grants in such 
year, for purposes of such year any amounts for a 
State (as such term is defined in section 1303 of 
this Act) that would otherwise be determined under 
subsection (d) by applying the formula established 
pursuant to paragraph (2) of this subsection shall be 
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