(A) the number of families residing in the
State (but not within an entitlement commu-
nity) who pay more than 50 percent of the
gross family income for housing costs, to
(B) the total number of families residing in
all States (but not within an entitlement com-
munity) who pay more than 50 percent of the
gross family income for housing costs.
(c) ADJUSTMENT FOR HIGH HOUSING COSTS.—Ad-
justment of an amount for an eligible public entity in ac-
cordance with this subsection shall be an adjustment to
the extent necessary to reflect the cost of affordable hous-
ing in the eligible public entity relative to the cost of af-
fordable housing in other eligible entities, as determined
by the Secretary. Any adjustment of amounts for a fiscal
year in accordance with this subsection shall be made in
such amounts so that the sum of the allotments for all
eligible public entities resulting from paragraphs (1)(A),
(2)(A), and (3)(A) of subsection (a) is equal to 67 percent
of the total Fund grant amounts for the fiscal year.
(d) AFFORDABLE HOUSING SUPPLY MULTIPLIER.—
(1) IN GENERAL.—The Secretary shall, by reg-
ulation, establish a formula to determine, for each
eligible public entity, a number (for purposes of this
section referred to as the ‘‘affordable housing supply
multiplier’’) that reflects the share, for each eligible
public entity, of the total need in all States for addi-
tional units of decent housing that is permanently
affordable for extremely low-, very low-, and low-in-
come families of different size relative to the share
of such need for other eligible public entities, as ad-
justed to take into consideration prevailing levels of
construction and rehabilitation costs.
(2) FACTORS.—The formula established pursu-
ant to paragraph (1) shall be based on objective
measures of inadequate housing supply, including—
(A) population growth;
(B) costs of acquiring, rehabilitating, and
constructing affordable housing;
(C) relative fiscal incapacity to carry out
activities under section 204 without Federal as-
sistance; and
(D) special housing needs.
(e) DE MINIMIS RULE.—Notwithstanding subsection
(a)—
(1) if the allotment determined under sub-
section (a)(1) for an entitlement community is less
than $750,000, the amount of the allotment for the
entitlement community shall instead be $750,000,
and the allotment for each other entitlement commu-
nity shall be adjusted on a pro rata basis;
(2) if the allotment determined under sub-
section (a)(2) for an Indian tribe is less than
$500,000, the amount of the allotment for the In-
dian tribe shall instead be $500,000, and the allot-
ment for each other Indian tribe shall be adjusted
on a pro rata basis; and
(3) if the allotment determined under sub-
section (a)(3) for a State is less than $2,000,000,
the amount of the allotment for the State shall in-
stead be $2,000,000, and the allotment for each
other State shall be adjusted on a pro rata basis.
SEC. 211. MAINTENANCE OF STATE AND LOCAL EFFORT.
Assistance provided with grant amounts may not be
used to replace other public funds previously used, or des-
ignated for use, for activities of the type eligible to be as-
sisted under this title.
SEC. 212. COMPLIANCE.
(a) MONITORING AND PERFORMANCE REPORTS.—
(1) IN GENERAL.—Each eligible public entity
shall monitor the programs for assistance under this
title carried out by the entity and activities assisted
under such programs, and annually conduct a review
of the progress made in carrying out the Trust
Fund grant plan for the entity. Each eligible public
entity shall annually submit a report on such mon-
itoring and review, in the form established by the
Secretary, which shall include information describing
the number and types of families served, including
the number of families in each income group as-
sisted under this title and the racial and ethnic sta-
tus of persons assisted.
(2) SUBMISSION.—The Secretary shall establish
dates for submission of reports under this subsection
and review the reports and make such recommenda-
tions as the Secretary considers appropriate to carry
out the purposes of this title.
(3) FAILURE TO REPORT.—If an eligible public
entity fails to submit a report to the Secretary in a
timely manner or the Secretary determines that the
report is incomplete, assistance under this title to
the entity may be—
(A) withheld until a report satisfactory to
the Secretary is submitted; or
(B) withdrawn and credited to the Fund
for reallocation under section 209 of this title
in the succeeding fiscal year, but only if the
Secretary determines on the record, after notice
to the entity and an opportunity for a hearing,
that the entity will not submit a satisfactory re-
port.
(b) PERFORMANCE REVIEW BY SECRETARY.—
(1) IN GENERAL.—The Secretary shall review
the activities of each eligible public entity that re-
ceives grant amounts for a fiscal year in a timely
manner after the conclusion of such fiscal year.
Such review shall include regular on-site visits in ac-
cordance with a schedule established by the Sec-
retary and assessment of—
(A) management of grant amounts pro-
vided to the eligible public entity;
(B) compliance by the eligible public entity
with the Trust Fund grant plan of the entity;
(C) the accuracy of eligible public entity in
preparing performance reports under subsection
(a); and
(D) efforts of the eligible public entity to
ensure that housing assisted with grant
amounts are maintained in compliance with
contractual agreements and the requirements
under this title.
(2) REPORT.—For each eligible public entity
that submits a performance review under subsection
(a), the Secretary shall submit to the entity a writ-
ten preliminary report evaluating the performance
review. During the 30-day period beginning upon
submission of the report, the eligible public entity
may submit to the Secretary comments regarding
the report. After reviewing such comments but not
later than 30 days after the conclusion of such pe-
riod, the Secretary shall submit to the eligible public
entity a final report evaluating the performance re-
port of the entity. Upon submission to the eligible
public entity, the Secretary shall make the final re-
port, together with the comments submitted by the
entity, publicly available.
(c) REMEDIES
FOR NONCOMPLIANCE WITH PRO-
GRAM REQUIREMENTS.—
(1) AVAILABLE
REMEDIES.—If the Secretary
finds on the record, after reasonable notice and op-
portunity for hearing, that an eligible public entity
has failed to comply substantially with any provision
of this title, the Secretary, until the Secretary deter-
mines that there is no longer any such failure to
comply, shall take one or more of the following ac-
tions:
(A) Termination of the payment of assist-
ance under this title to the entity.
(B) Reduction of the amount of assistance
under this title to the entity by an amount
equal to the amount of such payments which
were not expended in accordance with this title.
(C) Limitation of the availability of pay-
ments under this title to programs, projects, or
activities not affected by such failure to comply.
(D) Termination of the allotment for the
entity for subsequent fiscal years.
(2) CIVIL ACTION.—
(A) AVAILABILITY.—In lieu of, or in addi-
tion to, any action authorized by paragraph (1),
the Secretary may, if the Secretary has reason
to believe that an eligible public entity has
failed to comply substantially with any provision
of this title, refer the matter to the Attorney
General of the United States with a rec-
ommendation that an appropriate civil action be
commenced.
(B) RELIEF SOUGHT.—Upon such a refer-
ral the Attorney General may bring a civil ac-
tion in any United States district court having
venue thereof for such relief as may be appro-
priate, including an action to recover the
amount of the assistance provided under this
title which was not expended in accordance with
this title, or for mandatory or injunctive relief.
(3) PETITION FOR REVIEW.—
(A) AVAILABILITY.—Any eligible public en-
tity which receives notice under paragraph (1)
of the termination, reduction, or limitation of
payments under this title may, within 60 days
after receiving such notice, file with the United
States Court of Appeals for the circuit in which
such State is located, or in the United States
Court of Appeals for the District of Columbia,
a petition for review of the Secretary’s action.
The petitioner shall forthwith transmit copies of
the petition to the Secretary and the Attorney
General of the United States, who shall rep-
resent the Secretary in the litigation.
(B) FILING OF RECORD.—The Secretary
shall file in the court a record of the proceeding
on which the Secretary based the action, as pro-
vided in section 2112 of title 28, United States
Code. No objection to the action of the Sec-
retary shall be considered by the court unless
such objection has been urged before the Sec-
retary.