A grantee may allocate a portion of funds under 
this section for use by such grantee for eligible 
activities pursuant to the selection process under 
subparagraph (A). 
‘‘(3) PERFORMANCE GOALS, BENCHMARKS, AND 
TIMETABLES.—The allocation plan shall include per-
formance goals, benchmarks, and timetables for the 
grantee for the conducting of eligible activities with 
Trust Fund grant amounts that comply with require-
ments and standards for such goals, benchmarks, and 
timetables as the Secretary shall, by regulation, estab-
lish. 
‘‘(d) REVIEW AND APPROVAL BY SECRETARY.— 
‘‘(1) SUBMISSION.—A grantee described in sub-
section (a) shall submit an allocation plan for the fis-
cal year for which the grant is made to the Secretary 
not later than the expiration of the 6-month period 
beginning upon the notice of funding availability 
under section 294(b)(4) for such fiscal year amounts. 
‘‘(2) REVIEW AND APPROVAL OR DISAPPROVAL.— 
The Secretary shall review and approve or disapprove 
an allocation plan not later than the expiration of the 
3-month period beginning upon submission of the 
plan. 
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‘‘(3) STANDARD
FOR
DISAPPROVAL.—The Sec-
retary may disapprove an allocation plan only if the 
plan fails to comply with requirements of this section 
or section 296. 
‘‘(4) RESUBMISSION UPON DISAPPROVAL.—If the 
Secretary disapproves a plan, the grantee may submit 
to the Secretary a revised plan for review and ap-
proval or disapproval under this subsection. 
‘‘(5) TIMING FOR FISCAL YEAR 2008.—With re-
spect only to fiscal year 2008, the Secretary may ex-
tend each of the periods referred to in paragraphs (1) 
and (2), and the period referred to in section 
294(i)(1)(A), by not more than 6 months. 
‘‘SEC. 296. USE OF ASSISTANCE BY RECIPIENTS. 
‘‘(a) DISTRIBUTION TO RECIPIENTS; USE REQUIRE-
MENTS.—Each grantee shall distribute Trust Fund grant 
amounts of the grantee to eligible recipients for use in ac-
cordance with this section. Trust Fund grant amounts of 
a grantee may be used, or committed for use, only for eligi-
ble activities that— 
‘‘(1) are conducted in the jurisdiction of the 
grantee; 
‘‘(2) in the case of a grantee that is a State, in-
sular area, participating local jurisdiction, or grantee 
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under section 294(i), comply with the allocation plan 
of the grantee under section 295; 
‘‘(3) are selected for funding by the grantee in 
accordance with the process and criteria for such se-
lection established pursuant to section 295(c)(2); and 
‘‘(4) comply with the targeting requirements 
under subsection (c) of this section and the affordable 
housing requirements under section 297. 
‘‘(b) ELIGIBLE
RECIPIENTS.—Trust Fund grant 
amounts of a grantee may be provided only to an organiza-
tion, agency, or other entity (including a for-profit entity, 
a nonprofit entity, a faith-based organization, a commu-
nity development financial institution, a community devel-
opment corporation, and a State or local housing trust 
fund) that— 
‘‘(1) demonstrates the experience, ability, and ca-
pacity (including financial capacity) to undertake, 
comply, and manage the eligible activity; 
‘‘(2) demonstrates its familiarity with the re-
quirements of any other Federal, State or local hous-
ing program that will be used in conjunction with 
such grant amounts to ensure compliance with all ap-
plicable requirements and regulations of such pro-
grams; and 
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‘‘(3) makes such assurances to the grantee as the 
Secretary shall, by regulation, require to ensure that 
the recipient will comply with the requirements of 
this subtitle during the entire period that begins upon 
selection of the recipient to receive such grant 
amounts and ending upon the conclusion of all eligi-
ble activities that are engaged in by the recipient and 
funded with such grant amounts. 
‘‘(c) TARGETING REQUIREMENTS.—The targeting re-
quirements under this subsection are as follows: 
‘‘(1) REQUIREMENT OF USE OF ALL AMOUNTS 
FOR AFFORDABLE HOUSING FOR LOW-INCOME FAMI-
LIES.—All Trust Fund grant amounts of a grantee 
shall be distributed for use only for eligible activities 
relating to affordable housing that are for the benefit 
only of families whose incomes do not exceed 80 per-
cent of the greater of— 
‘‘(A) the median family income for the area 
in which the housing is located, as determined by 
the Secretary with adjustments for smaller and 
larger families; and 
‘‘(B) the median family income for the 
State or insular area in which the housing is lo-
cated, as determined by the Secretary with ad-
justments for smaller and larger families. 
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‘‘(2) USE
OF
PERCENT
FOR
AFFORDABLE 
HOUSING FOR EXTREMELY LOW-INCOME FAMILIES.— 
Not less than 75 percent of the Trust Fund grant 
amounts of a grantee for each fiscal year shall be used 
only for eligible activities relating to affordable hous-
ing that are for the benefit only of families whose in-
comes do not exceed the higher of— 
‘‘(A) 30 percent of the median family in-
come for the area in which the housing is lo-
cated, as determined by the Secretary with ad-
justments for smaller and larger families; and 
‘‘(B) the poverty line (as such term is de-
fined in section 673 of the Omnibus Budget Rec-
onciliation Act of 1981 (42 U.S.C. 9902), includ-
ing any revision required by such section) appli-
cable to a family of the size involved. 
‘‘(3) USE
OF
PERCENT
FOR
AFFORDABLE 
HOUSING FOR VERY POOR FAMILIES.—Not less than 
30 percent of the Trust Fund grant amounts of a 
grantee for each fiscal year shall be used only for eli-
gible activities relating to affordable housing that are 
for the benefit only of families whose incomes do not 
exceed the maximum amount of income that an indi-
vidual or family could have, taking into consideration 
any income disregards, and remain eligible for bene-
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fits under the Supplemental Security Income pro-
gram under title XVI of the Social Security Act (42 
U.S.C. 1381 et seq.). 
‘‘(4) USE
OF
PERCENT
FOR
AFFORDABLE 
HOUSING FOR FAMILIES ABOVE 50 PERCENT OF AREA 
MEDIAN INCOME.—Not less than 10 percent of the 
Trust Fund grant amounts of a grantee for each fiscal 
year shall be used only for eligible activities relating 
to affordable housing that are for the benefit only of 
families whose incomes exceed 50 percent of the me-
dian family income for the area in which the housing 
is located, as determined by the Secretary with ad-
justments for smaller and larger families. 
‘‘(5) LIMITATION
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, in addition to the other requirements 
under this subsection, all such amounts shall be used 
only for eligible activities relating to affordable hous-
ing that are for the benefit only of families whose in-
comes do not exceed 60 percent of the median family 
income for the area in which the housing is located, 
as determined by the Secretary with adjustments for 
smaller and larger families. 
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