1398 
(c) Notwithstanding section 854(c) of the AIDS Hous-
ing Opportunity Act (42 U.S.C. 12903(c)), the Secretary 
of Housing and Urban Development may adjust the alloca-
tion of the amounts that otherwise would be allocated for 
fiscal year 2008 under section 854(c) of such Act, upon the 
written request of an applicant, in conjunction with the 
State(s), for a formula allocation on behalf of a metropoli-
tan statistical area, to designate the State or States in 
which the metropolitan statistical area is located as the eli-
gible grantee(s) of the allocation. In the case that a metro-
politan statistical area involves more than one State, such 
amounts allocated to each State shall be in proportion to 
the number of cases of AIDS reported in the portion of the 
metropolitan statistical area located in that State. Any 
amounts allocated to a State under this section shall be used 
to carry out eligible activities within the portion of the met-
ropolitan statistical area located in that State. 
SEC. 211. The Secretary of Housing and Urban Devel-
opment shall submit an annual report no later than August 
30, 2008 and annually thereafter to the House and Senate 
Committees on Appropriations regarding the number of 
Federally assisted units under lease and the per unit cost 
of these units to the Department of Housing and Urban 
Development.
1399 
SEC. 212. The President’s formal budget request for fis-
cal year 2009, as well as the Department of Housing and 
Urban Development’s congressional budget justifications to 
be submitted to the Committees on Appropriations of the 
House of Representatives and the Senate, shall use the iden-
tical account and sub-account structure provided under this 
Act. 
SEC. 213. Amounts made available in this Act or pre-
vious appropriations Acts for tenant-based rental assistance 
and used for non-elderly disabled families or for the Family 
Unification Program shall, to the extent practicable, re-
main available for each such respective purpose upon turn- 
over. 
SEC. 214. A public housing agency or such other entity 
that administers Federal housing assistance for the Housing 
Authority of the county of Los Angeles, California, the 
States of Alaska, Iowa, and Mississippi shall not be re-
quired to include a resident of public housing or a recipient 
of assistance provided under section 8 of the United States 
Housing Act of 1937 on the board of directors or a similar 
governing board of such agency or entity as required under 
section (2)(b) of such Act. Each public housing agency or 
other entity that administers Federal housing assistance 
under section 8 for the Housing Authority of the county 
of Los Angeles, California and the States of Alaska, Iowa
1400 
and Mississippi shall establish an advisory board of not less 
than 6 residents of public housing or recipients of section 
8 assistance to provide advice and comment to the public 
housing agency or other administering entity on issues re-
lated to public housing and section 8. Such advisory board 
shall meet not less than quarterly. 
SEC. 215. (a) Notwithstanding any other provision of 
law, subject to the conditions listed in subsection (b), for 
fiscal years 2008 and 2009, the Secretary of Housing and 
Urban Development may authorize the transfer of some or 
all project-based assistance, debt and statutorily required 
low-income and very low-income use restrictions, associated 
with one or more multifamily housing project to another 
multifamily housing project or projects. 
(b) The transfer authorized in subsection (a) is subject 
to the following conditions: 
(1) the number of low-income and very low-in-
come units and the net dollar amount of Federal as-
sistance provided by the transferring project shall re-
main the same in the receiving project or projects; 
(2) the transferring project shall, as determined 
by the Secretary, be either physically obsolete or eco-
nomically non-viable;
1401 
(3) the receiving project or projects shall meet or 
exceed applicable physical standards established by 
the Secretary; 
(4) the owner or mortgagor of the transferring 
project shall notify and consult with the tenants re-
siding in the transferring project and provide a cer-
tification of approval by all appropriate local govern-
mental officials; 
(5) the tenants of the transferring project who re-
main eligible for assistance to be provided by the re-
ceiving project or projects shall not be required to va-
cate their units in the transferring project or projects 
until new units in the receiving project are available 
for occupancy; 
(6) the Secretary determines that this transfer is 
in the best interest of the tenants; 
(7) if either the transferring project or the receiv-
ing project or projects meets the condition specified in 
subsection (c)(2)(A), any lien on the receiving project 
resulting from additional financing obtained by the 
owner shall be subordinate to any FHA-insured mort-
gage lien transferred to, or placed on, such project by 
the Secretary; 
(8) if the transferring project meets the require-
ments of subsection (c)(2)(E), the owner or mortgagor
1402 
of the receiving project or projects shall execute and 
record either a continuation of the existing use agree-
ment or a new use agreement for the project where, 
in either case, any use restrictions in such agreement 
are of no lesser duration than the existing use restric-
tions; 
(9) any financial risk to the FHA General and 
Special Risk Insurance Fund, as determined by the 
Secretary, would be reduced as a result of a transfer 
completed under this section; and 
(10) the Secretary determines that Federal liabil-
ity with regard to this project will not be increased. 
(c) For purposes of this section— 
(1) the terms ‘‘low-income’’ and ‘‘very low-in-
come’’ shall have the meanings provided by the statute 
and/or regulations governing the program under 
which the project is insured or assisted; 
(2) the term ‘‘multifamily housing project’’ 
means housing that meets one of the following condi-
tions— 
(A) housing that is subject to a mortgage 
insured under the National Housing Act; 
(B) housing that has project-based assist-
ance attached to the structure including projects 
undergoing mark to market debt restructuring
1403 
under the Multifamily Assisted Housing Reform 
and Affordability Housing Act; 
(C) housing that is assisted under section 
202 of the Housing Act of 1959 as amended by 
section 801 of the Cranston-Gonzales National 
Affordable Housing Act; 
(D) housing that is assisted under section 
202 of the Housing Act of 1959, as such section 
existed before the enactment of the Cranston- 
Gonzales National Affordable Housing Act; or 
(E) housing or vacant land that is subject 
to a use agreement; 
(3) the term ‘‘project-based assistance’’ means— 
(A) assistance provided under section 8(b) 
of the United States Housing Act of 1937; 
(B) assistance for housing constructed or 
substantially rehabilitated pursuant to assistance 
provided under section 8(b)(2) of such Act (as 
such section existed immediately before October 
1, 1983); 
(C) rent supplement payments under sec-
tion 101 of the Housing and Urban Development 
Act of 1965; 
(D) interest reduction payments under sec-
tion 236 and/or additional assistance payments
1404 
under section 236(f)(2) of the National Housing 
Act; and 
(E) assistance payments made under sec-
tion 202(c)(2) of the Housing Act of 1959; 
(4) the term ‘‘receiving project or projects’’ 
means the multifamily housing project or projects to 
which some or all of the project-based assistance, debt, 
and statutorily required use low-income and very 
low-income restrictions are to be transferred; 
(5) the term ‘‘transferring project’’ means the 
multifamily housing project which is transferring 
some or all of the project-based assistance, debt and 
the statutorily required low-income and very low-in-
come use restrictions to the receiving project or 
projects; and 
(6) the term ‘‘Secretary’’ means the Secretary of 
Housing and Urban Development. 
SEC. 216. The funds made available for Native Alas-
kans under the heading ‘‘Native American Housing Block 
Grants’’ in title III of this Act shall be allocated to the same 
Native Alaskan housing block grant recipients that received 
funds in fiscal year 2005. 
SEC. 217. No funds provided under this title may be 
used for an audit of the Government National Mortgage As-
1405 
sociation that makes applicable requirements under the 
Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.) 
SEC. 218. (a) No assistance shall be provided under 
section 8 of the United States Housing Act of 1937 (42 
U.S.C. 1437f) to any individual who— 
(1) is enrolled as a student at an institution of 
higher education (as defined under section 102 of the 
Higher Education Act of 1965 (20 U.S.C. 1002)); 
(2) is under 24 years of age; 
(3) is not a veteran; 
(4) is unmarried; 
(5) does not have a dependent child; 
(6) is not a person with disabilities, as such 
term is defined in section 3(b)(3)(E) of the United 
States 
Housing 
Act 
of 
1937 
(42 
U.S.C. 
1437a(b)(3)(E)) and was not receiving assistance 
under such section 8 as of November 30, 2005; and 
(7) is not otherwise individually eligible, or has 
parents who, individually or jointly, are not eligible, 
to receive assistance under section 8 of the United 
States Housing Act of 1937 (42 U.S.C. 1437f). 
(b) For purposes of determining the eligibility of a per-
son to receive assistance under section 8 of the United States 
Housing Act of 1937 (42 U.S.C. 1437f), any financial as-
sistance (in excess of amounts received for tuition) that an
1406 
individual receives under the Higher Education Act of 1965 
(20 U.S.C. 1001 et seq.), from private sources, or an institu-
tion of higher education (as defined under the Higher Edu-
cation Act of 1965 (20 U.S.C. 1002)), shall be considered 
income to that individual, except for a person over the age 
of 23 with dependent children. 
(c) Not later than 30 days after the date of enactment 
of this Act, the Secretary of Housing and Urban Develop-
ment shall issue final regulations to carry out the provi-
sions of this section. 
SEC. 219. Notwithstanding the limitation in the first 
sentence of section 255(g) of the National Housing Act (12 
U.S.C. 1715z–20(g)), the Secretary of Housing and Urban 
Development may, until September 30, 2008, insure and 
enter into commitments to insure mortgages under section 
255 of the National Housing Act (12 U.S.C. 1715z–20). 
SEC. 220. Notwithstanding any other provision of law, 
in fiscal year 2008, in managing and disposing of any mul-
tifamily property that is owned or has a mortgage held by 
the Secretary of Housing and Urban Development, the Sec-
retary shall maintain any rental assistance payments 
under section 8 of the United States Housing Act of 1937 
and other programs that are attached to any dwelling units 
in the property. To the extent the Secretary determines, in 
consultation with the tenants and the local government, that
1407 
such a multifamily property owned or held by the Secretary 
is not feasible for continued rental assistance payments 
under such section 8 or other programs, based on consider-
ation of (1) the costs of rehabilitating and operating the 
property and all available Federal, State, and local re-
sources, including rent adjustments under section 524 of the 
Multifamily Assisted Housing Reform and Affordability 
Act of 1997 (‘‘MAHRAA’’) and (2) environmental condi-
tions that cannot be remedied in a cost-effective fashion, the 
Secretary may, in consultation with the tenants of that 
property, contract for project-based rental assistance pay-
ments with an owner or owners of other existing housing 
properties, or provide other rental assistance. The Secretary 
shall also take appropriate steps to ensure that project-based 
contracts remain in effect prior to foreclosure, subject to the 
exercise of contractual abatement remedies to assist reloca-
tion of tenants for imminent major threats to health and 
safety. After disposition of any multifamily property de-
scribed under this section, the contract and allowable rent 
levels on such properties shall be subject to the requirements 
under section 524 of MAHRAA. 
SEC. 221. The National Housing Act is amended— 
(1) 
in 
sections 
207(c)(3), 
213(b)(2)(B)(i), 
221(d)(3)(ii)(II), 221(d)(4)(ii)(II), 231(c)(2)(B), and 
234(e)(3)(B) (12 U.S.C. 1713(c)(3), 1715e(b)(2)(B)(i),
1408 
1715l(d)(3)(ii)(II), 
1715l(d)(4)(ii)(II), 
1715v(c)(2)(B), and 1715y(e)(3)(B))— 
(A) by striking ‘‘140 percent’’ each place 
such term appears and inserting ‘‘170 percent’’; 
and 
(B) by striking ‘‘170 percent in high cost 
areas’’ each place such term appears and insert-
ing ‘‘215 percent in high cost areas’’; and 
(2) in section 220(d)(3)(B)(iii)(III) (12 U.S.C. 
1715k(d)(3)(B)(iii)(III)) by striking ‘‘206A’’ and all 
that follows through ‘‘project-by-project basis’’ and in-
serting the following: ‘‘206A of this Act) by not to ex-
ceed 170 percent in any geographical area where the 
Secretary finds that cost levels so require and by not 
to exceed 170 percent, or 215 percent in high cost 
areas, where the Secretary determines it necessary on 
a project-by-project basis’’. 
SEC. 222. (a) During fiscal year 2008, in the provision 
of rental assistance under section 8(o) of the United States 
Housing Act of 1937 (42 U.S.C. 1437f(o)) in connection 
with a program to demonstrate the economy and effective-
ness of providing such assistance for use in assisted living 
facilities that is carried out in the counties of the State of 
Michigan notwithstanding paragraphs (3) and (18)(B)(iii) 
of such section 8(o), a family residing in an assisted living
1409 
facility in any such county, on behalf of which a public 
housing agency provides assistance pursuant to section 
8(o)(18) of such Act, may be required, at the time the family 
initially receives such assistance, to pay rent in an amount 
exceeding 40 percent of the monthly adjusted income of the 
family by such a percentage or amount as the Secretary 
of Housing and Urban Development determines to be ap-
propriate. 
SEC. 223. Notwithstanding any other provision of law, 
the recipient of a grant under section 202b of the Housing 
Act of 1959 (12 U.S.C. 1701q–2) after December 26, 2000, 
in accordance with the unnumbered paragraph at the end 
of section 202(b) of such Act, may, at its option, establish 
a single-asset nonprofit entity to own the project and may 
lend the grant funds to such entity, which may be a private 
nonprofit organization described in section 831 of the 
American Homeownership and Economic Opportunity Act 
of 2000. 
SEC. 224. Section 24 of the United States Housing Act 
of 1937 (42 U.S.C. 1437v) is amended— 
(1) in subsection (m)(1), by striking ‘‘2003’’ and 
inserting ‘‘2008’’; and 
(2) in subsection (o), by striking ‘‘September 30, 
2007’’ and inserting ‘‘September 30, 2008’’.
1410 
SEC. 225. Public housing agencies that own and oper-
ate 400 or fewer public housing units may elect to be exempt 
from any asset management requirement imposed by the 
Secretary of Housing and Urban Development in connec-
tion with the operating fund rule: Provided, That an agency 
seeking a discontinuance of a reduction of subsidy under 
the operating fund formula shall not be exempt from asset 
management requirements. 
SEC. 226. With respect to the use of amounts provided 
in this Act and in future Acts for the operation, capital 
improvement and management of public housing as author-
ized by sections 9(d) and 9(e) of the United States Housing 
Act of 1937 (42 U.S.C. 1437g(d) and (e)), the Secretary 
shall not impose any requirement or guideline relating to 
asset management that restricts or limits in any way the 
use of capital funds for central office costs pursuant to sec-
tion 9(g)(1) or 9(g)(2) of the United States Housing Act 
of 1937 (42 U.S.C. 1437g(g)(1),(2)): Provided, however, that 
a public housing agency may not use capital funds author-
ized under section 9(d) for activities that are eligible under 
section 9(e) for assistance with amounts from the operating 
fund in excess of the amounts permitted under sections 
9(g)(1) or 9(g)(2). 
SEC. 227. The Secretary of Housing and Urban Devel-
opment shall report quarterly to the House of Representa-
1411 
tives and Senate Committees on Appropriations on the sta-
tus of all section 8 project-based housing, including the 
number of all project-based units by region as well as an 
analysis of all federally subsidized housing being refinanced 
under the Mark-to-Market program. The Secretary shall in 
the report identify all existing units maintained by region 
as section 8 project-based units and all project-based units 
that have opted out of section 8 or have otherwise been 
eliminated as section 8 project-based units. The Secretary 
shall identify in detail and by project all the efforts made 
by the Department to preserve all section 8 project-based 
housing units and all the reasons for any units which opted 
out or otherwise were lost as section 8 project-based units. 
Such analysis shall include a review of the impact of the 
loss of any subsidized units in that housing marketplace, 
such as the impact of cost and the loss of available sub-
sidized, low-income housing in areas with scarce housing 
resources for low-income families. 
SEC. 228. The Secretary of Housing and Urban Devel-
opment shall report quarterly to the House of Representa-
tives and Senate Committees on Appropriations on HUD’s 
use of all sole source contracts, including terms of the con-
tracts, cost and a substantive rationale for using a sole 
source contract.
1412 
SEC. 229. Section 9(e)(2)(C) of the United States 
Housing Act of 1937 (42 U.S.C. 1437g(e)(2)(C)) is amended 
by adding at the end of the following: 
‘‘(iv) EXISTING CONTRACTS.—The term 
of a contract described in clause (i) that, as 
of the date of enactment of this clause, is in 
repayment and has a term of not more than 
12 years, may be extended to a term of not 
more than 20 years to permit additional 
energy conservation improvements without 
requiring the reprocurement of energy per-
formance contractors.’’. 
SEC. 230. The Secretary of Housing and Urban Devel-
opment shall increase, pursuant to this section, the number 
of Moving-to-Work agencies authorized under section 204, 
title II, of the Departments of Veterans Affairs and Housing 
and Urban Development and Independent Agencies Appro-
priations Act, 1996 (Public Law 104–134; 110 Stat. 1321– 
281) by making individually the Alaska Housing Finance 
Corporation and the housing authorities of the counties of 
San Bernardino and Santa Clara and the city of San Jose, 
California a Moving-to-Work Agency under such section 
204. 
SEC. 231. Notwithstanding any other provision of law, 
the Secretary of Housing and Urban Development may not
1413 
rescind or take any adverse action with respect to the Mov-
ing-to-Work program designation for the Housing Author-
ity of Baltimore City based on any alleged administrative 
or procedural errors in making such designation. 
SEC. 232. Paragraph (4) of section 102(a) of the Hous-
ing and Community Development Act of 1974 (42 U.S.C. 
5302) is amended by adding at the end the following new 
sentence: ‘‘Notwithstanding any other provision of this 
paragraph, with respect to any fiscal year beginning after 
September 30, 2007, the cities of Alton and Granite City, 
Illinois, shall be considered metropolitan cities for purposes 
of this title.’’. 
SEC. 233. (a) The amounts provided under the sub-
heading ‘‘Program Account’’ under the heading ‘‘Commu-
nity Development Loan Guarantees’’ may be used to guar-
antee, or make commitments to guarantee, notes or other 
obligations issued by any State on behalf of non-entitlement 
communities in the State in accordance with the require-
ments of section 108 of the Housing and Community Devel-
opment Act of 1974: Provided, That, any State receiving 
such a guarantee or commitment shall distribute all funds 
subject to such guarantee to the units of general local gov-
ernment in non-entitlement areas that received the commit-
ment.
1414 
(b) Not later than 60 days after the date of enactment 
of this Act, the Secretary of Housing and Urban Develop-
ment shall promulgate regulations governing the adminis-
tration of the funds described under subsection (a). 
SEC. 234. Not later than 30 days after the date of en-
actment of this Act, the Secretary of Housing and Urban 
Development shall establish and maintain on the homepage 
of the Internet website of the Department of Housing and 
Urban Development— 
(1) a direct link to the Internet website of the Of-
fice of Inspector General of the Department of Hous-
ing and Urban Development; and 
(2) a mechanism by which individuals may 
anonymously report cases of waste, fraud, or abuse 
with respect to the Department of Housing and 
Urban Development. 
SEC. 235. (a) REQUIRED SUBMISSIONS FOR FISCAL 
YEARS 2007 AND 2008.— 
(1) IN GENERAL.—Not later than 60 days after 
the date of enactment of this Act, the Secretary of 
Housing and Urban Development shall submit to the 
relevant authorizing committees and to the Commit-
tees on Appropriations of the Senate and the House 
of Representatives for fiscal year 2007 and 2008—
1415 
(A) a complete and accurate accounting of 
the actual project-based renewal costs for project- 
based assistance under section 8 of the United 
States Housing Act of 1937 (42 U.S.C. 1437f); 
(B) revised estimates of the funding needed 
to fully fund all 12 months of all project-based 
contracts under such section 8, including project- 
based contracts that expire in fiscal year 2007 
and fiscal year 2008; and 
(C) all sources of funding that will be used 
to fully fund all 12 months of the project-based 
contracts for fiscal years 2007 and 2008. 
(2) UPDATED INFORMATION.—At any time after 
the expiration of the 60-day period described in para-
graph (1), the Secretary may submit corrections or 
updates to the information required under paragraph 
(1), if upon completion of an audit of the project- 
based assistance program under section 8 of the 
United States Housing Act of 1937 (42 U.S.C. 1437f), 
such audit reveals additional information that may 
provide Congress a more complete understanding of 
the Secretary’s implementation of the project-based 
assistance program under such section 8. 
(b) REQUIRED
SUBMISSIONS
FOR
FISCAL
YEAR 
2009.—As part of the Department of Housing and Urban
1416 
Development’s budget request for fiscal year 2009, the Sec-
retary of Housing and Urban Development shall submit to 
the relevant authorizing committees and to the Committees 
on Appropriations of the Senate and the House of Rep-
resentatives complete and detailed information, including 
a project-by-project analysis, that verifies that such budget 
request will fully fund all project-based contracts under sec-
tion 8 of the United States Housing Act of 1937 (42 U.S.C. 
1437f) in fiscal year 2009, including expiring project-based 
contracts. 
SEC. 236. No official or employee of the Department 
of Housing and Urban Development shall be designated as 
an allotment holder unless the Office of the Chief Financial 
Officer has determined that such allotment holder has im-
plemented an adequate system of funds control and has re-
ceived training in funds control procedures and directives. 
The Chief Financial Officer shall ensure that, not later than 
ninety days after the date of enactment of this Act, a 
trained allotment holder shall be designated for each HUD 
sub-account under the headings ‘‘Executive Direction’’ and 
‘‘Administration, Operations, and Management’’ as well as 
each account receiving appropriations for ‘‘personnel com-
pensation and benefits’’ within the Department of Housing 
and Urban Development.
1417 
SEC. 237. Payment of attorney fees in program-related 
litigation must be paid from individual program office per-
sonnel benefits and compensation funding. The annual 
budget submission for program office personnel benefit and 
compensation funding must include program-related litiga-
tion costs for attorney fees as a separate line item request. 
SEC. 238. Of the unobligated balances remaining from 
funds appropriated to the Department of Housing and 
Urban Development under the heading ‘‘Tenant-Based 
Rental Assistance’’ under section 21033 of Public Law 110– 
5, $723,257,000 are rescinded from the $4,193,000,000 
which became available pursuant to such section on October 
1, 2007. 
This title may be cited as the ‘‘Department of Housing 
and Urban Development Appropriations Act, 2008’’. 
TITLE III 
RELATED AGENCIES 
ARCHITECTURAL AND TRANSPORTATION BARRIERS 
COMPLIANCE BOARD 
SALARIES AND EXPENSES 
For expenses necessary for the Architectural and 
Transportation Barriers Compliance Board, as authorized 
by section 502 of the Rehabilitation Act of 1973, as amend-
ed, $6,150,000: Provided, That, notwithstanding any other
1418 
provision of law, there may be credited to this appropria-
tion funds received for publications and training expenses. 
FEDERAL MARITIME COMMISSION 
SALARIES AND EXPENSES 
For necessary expenses of the Federal Maritime Com-
mission as authorized by section 201(d) of the Merchant 
Marine Act, 1936 (46 U.S.C. App. 1111), including services 
as authorized by 5 U.S.C. 3109; hire of passenger motor 
vehicles as authorized by 31 U.S.C. 1343(b); and uniforms 
or allowances therefore, as authorized by 5 U.S.C. 5901– 
5902, $22,072,000: Provided, That not to exceed $2,000 
shall be available for official reception and representation 
expenses. 
NATIONAL TRANSPORTATION SAFETY BOARD 
SALARIES AND EXPENSES 
For necessary expenses of the National Transportation 
Safety Board, including hire of passenger motor vehicles 
and aircraft; services as authorized by 5 U.S.C. 3109, but 
at rates for individuals not to exceed the per diem rate 
equivalent to the rate for a GS–15; uniforms, or allowances 
therefor, as authorized by law (5 U.S.C. 5901–5902) 
$84,499,000, of which $74,063 is available for payments to 
remedy the violation of the Anti-deficiency Act reported by 
the National Transportation Safety Board on September 
26, 2007, and not to exceed $2,000 may be used for official
1419 
reception and representation expenses. The amounts made 
available to the National Transportation Safety Board in 
this Act include amounts necessary to make lease payments 
due in fiscal year 2008 only, on an obligation incurred in 
fiscal year 2001 for a capital lease. 
NEIGHBORHOOD REINVESTMENT CORPORATION 
PAYMENT TO THE NEIGHBORHOOD REINVESTMENT 
CORPORATION 
For payment to the Neighborhood Reinvestment Cor-
poration for use in neighborhood reinvestment activities, as 
authorized by the Neighborhood Reinvestment Corporation 
Act (42 U.S.C. 8101–8107), $119,800,000, of which 
$5,000,000 shall be for a multi-family rental housing pro-
gram. 
For an additional amount, $180,000,000 shall be made 
available until expended to the Neighborhood Reinvestment 
Corporation for mortgage foreclosure mitigation activities, 
under the following terms and conditions: 
(1) The Neighborhood Reinvestment Corporation 
(‘‘NRC’’), shall make grants to counseling inter-
mediaries approved by the Department of Housing 
and Urban Development (HUD) or the NRC (with 
match to be determined by the NRC based on afford-
ability and the economic conditions of an area; a 
match also may be waived by the NRC based on the
1420 
aforementioned conditions) to provide mortgage fore-
closure mitigation assistance primarily to states and 
areas with high rates of defaults and foreclosures pri-
marily in the sub prime housing market to help 
eliminate the default and foreclosure of mortgages of 
owner-occupied single-family homes that are at risk of 
such foreclosure. Other than areas with high rates of 
defaults and foreclosures, grants may also be provided 
to approved counseling intermediaries based on a geo-
graphic analysis of the Nation by the NRC which de-
termines where there is a prevalence of sub prime 
mortgages that are risky and likely to fail, including 
any trends for mortgages that are likely to default 
and face foreclosure. A State Housing Finance Agen-
cy may also be eligible where the State Housing Fi-
nance Agency meets all the requirements under this 
paragraph. A HUD- or NRC-approved counseling 
intermediary shall meet certain mortgage foreclosure 
mitigation assistance counseling requirements, as de-
termined by the NRC, and shall be approved by HUD 
or the NRC as meeting these requirements; 
(2) Mortgage foreclosure mitigation assistance 
shall only be made available to homeowners of owner- 
occupied homes with mortgages in default or in dan-
ger of default. These mortgages shall likely be subject
1421 
to a foreclosure action and homeowners will be pro-
vided such assistance that shall consist of activities 
that are likely to prevent foreclosures and result in 
the long-term affordability of the mortgage retained 
pursuant to such activity or another positive outcome 
for the homeowner. No funds made available under 
this paragraph may be provided directly to lenders or 
homeowners to discharge outstanding mortgage bal-
ances or for any other direct debt reduction payments; 
(3) The use of Mortgage Foreclosure Mitigation 
Assistance by approved counseling intermediaries and 
State Housing Finance Agencies shall involve a rea-
sonable analysis of the borrower’s financial situation, 
an evaluation of the current value of the property 
that is subject to the mortgage, counseling regarding 
the assumption of the mortgage by another non-fed-
eral party, counseling regarding the possible purchase 
of the mortgage by a non-federal third party, coun-
seling and advice of all likely restructuring and refi-
nancing strategies or the approval of a work-out 
strategy by all interested parties; 
(4) NRC shall award $50,000,000 in mortgage 
foreclosure mitigation grants for States and areas 
with the greatest needs within 60 days of enactment. 
Additional funds may be awarded once the NRC cer-
1422 
tifies that HUD- or NRC-approved counseling inter-
mediaries and State Housing Finance Agencies have 
the need for additional funds in states and areas with 
high rates of mortgage foreclosures, defaults, or related 
activities and the expertise to use these funds effec-
tively. The NRC may provide up to fifteen percent of 
the total funds under this paragraph to its own char-
ter members with expertise in foreclosure prevention 
counseling, subject to a certification by the NRC that 
the procedures for selection do not consist of any pro-
cedures or activities that could be construed as an un-
acceptable conflict of interest or have the appearance 
of impropriety; 
(5) NRC- or HUD-approved counseling entities 
and State Housing Finance Agencies receiving funds 
under this paragraph shall have demonstrated experi-
ence in successfully working with financial institu-
tions as well as borrowers facing default, delinquency 
and foreclosure as well as documented counseling ca-
pacity, outreach capacity, past successful performance 
and positive outcomes with documented counseling 
plans (including post mortgage foreclosure mitigation 
counseling), loan workout agreements and loan modi-
fication agreements;
1423 
(6) Of the total amount made available under 
this paragraph, up to $5,000,000 may be made avail-
able to build the mortgage foreclosure and default 
mitigation counseling capacity of counseling inter-
mediaries through NRC training courses with HUD- 
or NRC-approved counseling intermediaries and their 
partners, except that private financial institutions 
that participate in NRC training shall pay market 
rates for such training; 
(7) Of the total amount made available under 
this paragraph, up to 4 percent may be used for asso-
ciated administrative expenses for the NRC to carry- 
out activities provided under this section; 
(8) Mortgage foreclosure mitigation assistance 
may include a budget for outreach and advertising, as 
determined by the NRC; and 
(9) The NRC shall report bi-annually to the 
House and Senate Committees on Appropriations as 
well as the Senate Banking Committee and House Fi-
nancial Services Committee on its efforts to mitigate 
mortgage default. Such reports shall identify success-
ful strategies and methods for preserving homeowner-
ship and the long-term affordability of at-risk mort-
gages and shall include recommended efforts that will 
or likely can assist in the success of this program as