I 
108TH CONGRESS 
1ST SESSION H. R. 1102
To establish the National Affordable Housing Trust Fund in the Treasury 
of the United States to provide for the development, rehabilitation, and 
preservation of decent, safe, and affordable housing for low-income fami-
lies. 
IN THE HOUSE OF REPRESENTATIVES 
MARCH 5, 2003
Mr. SANDERS (for himself, Mr. SIMMONS, Ms. LEE, Mr. SHAYS, Ms. WATERS, 
Mr. GREENWOOD, Mr. HOYER, Mr. MCHUGH, Mr. ISRAEL, Mr. QUINN, 
Mr. SMITH of Washington, Mr. CLAY, Mr. WEINER, Mr. GRIJALVA, Mr. 
DAVIS of Alabama, Mr. LYNCH, Mrs. JONES of Ohio, Mr. OBERSTAR, Ms. 
WOOLSEY, 
Mr. 
CROWLEY, 
Mr. 
INSLEE, 
Ms. 
BALDWIN, 
Mrs. 
CHRISTENSEN, Mr. MORAN of Virginia, Mr. WYNN, Mrs. MALONEY, Mr. 
OWENS, Mr. KLECZKA, Mr. BISHOP of New York, Mr. HOLT, Mr. DAVIS 
of Illinois, Mr. GEORGE MILLER of California, Ms. SCHAKOWSKY, Mr. 
EVANS, Mr. ACEVEDO-VILA´, Ms. KAPTUR, Mr. FORD, Ms. DELAURO, 
Mr. HINCHEY, Mr. HONDA, Mr. GUTIERREZ, Ms. CARSON of Indiana, 
Mr. HOLDEN, Mr. CASE, Mr. DOYLE, Mr. WEXLER, Mr. GORDON, Mr. 
PAYNE, Mr. ABERCROMBIE, Mr. MCGOVERN, Mr. TIERNEY, Mr. MATSUI, 
Mr. CONYERS, Mr. KILDEE, Mr. MCNULTY, Mr. FARR, Ms. CORRINE 
BROWN of Florida, Mr. LANGEVIN, Mr. HALL, Mr. OLVER, Ms. KIL-
PATRICK, Mr. NADLER, Mr. ENGEL, Mr. CAPUANO, Ms. VELA´ZQUEZ, Mr. 
BLUMENAUER, Mr. SERRANO, Mr. TOWNS, Mr. STRICKLAND, Ms. 
LOFGREN, Mr. PALLONE, Mr. MOORE, Mr. RANGEL, Mr. DELAHUNT, 
Mr. CUMMINGS, Mr. COOPER, Mr. HINOJOSA, Mr. KIND, Ms. 
MILLENDER-MCDONALD, Mr. BOUCHER, Mrs. DAVIS of California, Mr. 
MCDERMOTT, Mr. MENENDEZ, Mr. DOGGETT, Ms. JACKSON-LEE of 
Texas, Mr. RUSH, Ms. WATSON, Mr. LARSEN of Washington, Ms. 
SLAUGHTER, Mr. DEFAZIO, Mr. SNYDER, Mr. JEFFERSON, Mr. LEWIS 
of Georgia, Mr. FATTAH, Mr. FROST, Mr. BROWN of Ohio, Mrs. MCCAR-
THY of New York, Mr. SPRATT, Mr. BACA, Mr. BECERRA, Mr. MEEKS 
of New York, Ms. MCCARTHY of Missouri, Mr. REYES, Mr. ALLEN, Mr. 
SCHIFF, Mr. RODRIGUEZ, Mr. EMANUEL, Ms. HARMAN, Mr. LARSON of 
Connecticut, Ms. LINDA T. SA´NCHEZ of California, Mr. DINGELL, Ms. 
NORTON, Mr. LANTOS, Mr. MICHAUD, Ms. ESHOO, Mrs. LOWEY, Ms. 
SOLIS, Ms. DEGETTE, Mr. KUCINICH, Mr. PASCRELL, Mr. UDALL of 
New Mexico, Ms. MCCOLLUM, Mr. BRADY of Pennsylvania, Mr. BELL, 
Mr. ANDREWS, Mr. KENNEDY of Rhode Island, Mr. HOEFFEL, Mr.
BALLANCE, Mr. PRICE of North Carolina, Mr. LAMPSON, Mr. WAXMAN, 
Mr. FILNER, Mrs. CAPPS, Mr. ORTIZ, Mr. STARK, Mr. COSTELLO, Mr. 
WATT, Mr. THOMPSON
of California, Mr. MEEK
of Florida, Ms. 
BORDALLO, Ms. EDDIE BERNICE JOHNSON of Texas, Mr. THOMPSON of 
Mississippi, Mr. JACKSON of Illinois, Mr. CLYBURN, Mr. GREEN of 
Texas, Mr. MEEHAN, Mr. RYAN of Ohio, Mr. VAN HOLLEN, Ms. ROY-
BAL-ALLARD, Mr. FALEOMAVAEGA, Mr. HILL, Mr. MCINTYRE, Mr. 
DAVIS of Tennessee, Mr. RAHALL, Mr. ROSS, Mr. MILLER of North 
Carolina, Mr. BOSWELL, Mr. UDALL of Colorado, Mr. DICKS, Mr. 
BISHOP of Georgia, Mr. ROTHMAN, and Mr. BERMAN) introduced the fol-
lowing bill; which was referred to the Committee on Financial Services 
A BILL 
To establish the National Affordable Housing Trust Fund 
in the Treasury of the United States to provide for 
the development, 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 2003’’.
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:
‘‘Subtitle G—National Affordable 
Housing Trust Fund 
‘‘SEC. 291. PURPOSES. 
‘‘The purposes of this subtitle are—
‘‘(1) to fill the growing gap in the national abil-
ity to build affordable housing by using profits gen-
erated by Federal housing programs to fund addi-
tional housing activities, without supplanting exist-
ing housing appropriations; 
‘‘(2) to enable rental housing to be built, for 
families with the greatest economic need, in mixed-
income settings and in areas with the greatest eco-
nomic opportunities; 
‘‘(3) to promote homeownership for low-income 
families; and 
‘‘(4) to produce, 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, which 
shall be available as provided in this subtitle for assisting 
the development, rehabilitation, and preservation of af-
fordable housing.
‘‘(b) DEPOSITS TO TRUST FUND.—For fiscal year 
2004 and each fiscal year thereafter, there shall be appro-
priated to the Trust Fund an amount equal to the sum 
of—
‘‘(1) the amount by which the balance in the 
Mutual Mortgage Insurance Fund established under 
section 202(a) of the National Housing Act (12 
U.S.C. 1708(a)), at the conclusion of the preceding 
fiscal year, exceeds the amount necessary for such 
Fund to maintain the capital ratio required under 
section 205(f) of such Act (12 U.S.C. 1711(f)); and 
‘‘(2) the amount by which any amounts col-
lected or received by the Government National Mort-
gage Association during the preceding fiscal year ex-
ceeds the amount necessary to pay the administra-
tive costs and expenses necessary to ensure the safe-
ty and soundness of the Government National Mort-
gage Association, as determined by the Secretary. 
‘‘(c) EXPENDITURES FROM TRUST FUND.—For fis-
cal year 2004 and each fiscal year thereafter, amounts ap-
propriated to the Trust Fund for each such fiscal year
shall be available to the Secretary of Housing and Urban 
Development for providing assistance under this subtitle.
‘‘SEC. 293. ALLOCATIONS FOR STATES AND PARTICIPATING 
LOCAL JURISDICTIONS. 
‘‘(a) IN GENERAL.—The Secretary shall use the total 
amount made available under section 292(c) to the Sec-
retary from the Trust Fund for such fiscal year to provide 
assistance under this subtitle for the States and partici-
pating local jurisdictions. Of such total amount, the Sec-
retary shall allocate 40 percent for States for use under 
section 294 and 60 percent for participating local jurisdic-
tions for use under section 294. 
‘‘(b) CONSORTIA
AS
PARTICIPATING
JURISDIC-
TIONS.—A consortium of geographically contiguous units 
of general local government shall be deemed to be a par-
ticipating local jurisdiction for the purposes of this section 
if the Secretary determines that the consortium has suffi-
cient authority and administrative capability to carry out 
the purposes of this subtitle on behalf of its member juris-
dictions. 
‘‘SEC. 294. ASSISTANCE FROM TRUST FUND. 
‘‘(a) AFFORDABLE HOUSING NEEDS FORMULA.—
The Secretary shall establish a formula to allocate assist-
ance under this subtitle among eligible recipients based 
on the relative need of the eligible recipient, among other 
eligible recipients that are States or participating local ju-
risdictions, as appropriate, to increase the supply of decent 
quality affordable housing. The formula shall be based
upon a comparison of the following factors for each eligible 
recipient: 
‘‘(1) The percentage of families in the jurisdic-
tion of the eligible recipient that live in substandard 
housing. 
‘‘(2) The percentage of families in the jurisdic-
tion of the eligible recipient that pay more than 50 
percent of their annual income for housing costs. 
‘‘(3) The percentage of persons in the jurisdic-
tion of the eligible recipient having an income at or 
below the poverty line. 
‘‘(4) The cost of developing or carrying out re-
habilitation of housing in the jurisdiction of the eli-
gible recipient. 
‘‘(5) The percentage of the population of the el-
igible recipient that resides in counties having ex-
tremely low vacancy rates. 
‘‘(6) The percentage of housing stock in the ju-
risdiction of the eligible recipient that is extremely 
old housing. 
‘‘(7) Any other factors that the Secretary deter-
mines to be appropriate. 
‘‘(b) FORMULA AMOUNT.—
‘‘(1) IN GENERAL.—For fiscal year 2004 and 
each fiscal year thereafter, the Secretary shall deter-
mine the formula amount under this subsection for 
each eligible recipient. 
‘‘(2) STATES.—The formula amount for each 
State shall be the amount determined for such State 
by applying the formula under subsection (a) to the 
total amount allocated under section 293(a) for all 
States 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) to the total amount allo-
cated under section 293(a) for all participating local 
jurisdictions for the fiscal year. 
‘‘(c) ALLOCATION AMOUNT.—The allocation under 
this subsection for a State or local participating jurisdic-
tion for a fiscal year shall be determined as follows: 
‘‘(1) STATES.—In the case of a State: 
‘‘(A) MINIMUM AMOUNT.—If the formula 
amount determined under subsection (b) for the 
State for the fiscal year is less than 1 percent 
of the total amount made available under sec-
tion 292(c) for such fiscal year, the allocation 
for the State shall be 1 percent of such amount.
‘‘(B) FORMULA AMOUNT.—If the formula 
amount determined under subsection (b) for the 
State for the fiscal year is 1 percent or more 
of the total amount made available under sec-
tion 292(c) for such fiscal year, the allocation 
for the State shall be the formula amount for 
the State, except that the Secretary shall re-
duce such formula amounts for all States whose 
allocations are determined under this paragraph 
on a pro rata basis by the amount necessary to 
account for any increases from the formula 
amount for allocations made under paragraph 
(1) of this subsection so that the total of the al-
locations for all States is equal to the amount 
of the allocation under section 293(a) for 
States. 
‘‘(2) PARTICIPATING LOCAL JURISDICTIONS.—
The allocation for each eligible participating local ju-
risdiction shall be the formula amount for the eligi-
ble jurisdiction determined under subsection (b). 
‘‘(d) GRANT AWARDS.—For fiscal year 2004 and 
each fiscal year thereafter, using the amounts made avail-
able to the Secretary from the Trust Fund for such fiscal 
year under section 292(c), the Secretary shall make a
grant to each eligible recipient in the lesser of the fol-
lowing amounts: 
‘‘(1) FULL ALLOCATION.—The amount of the 
allocation under subsection (c) for the eligible recipi-
ent. 
‘‘(2) 4 TIMES MATCHING CONTRIBUTION.—Ex-
cept as provided in subsection (e)(4), the amount 
that is equal to 4 times the amount of funds pro-
vided by the eligible recipient from non-Federal 
sources for use only as provided in subsection (e)(2). 
‘‘(e) MATCHING CONTRIBUTION.—
‘‘(1) ELIGIBLE
AMOUNTS.—For purposes of 
subsection (d)(2), only the following amounts shall 
be considered amounts from non-Federal sources: 
‘‘(A) LOW-INCOME
HOUSING
TAX
CRED-
ITS.—50 percent of funds allocable to tax cred-
its allocated under section 42 of the Internal 
Revenue Code of 1986.
‘‘(B) MORTGAGE
BOND
REVENUE.—50 
percent of revenue from mortgage revenue 
bonds issued under section 143 of such Code. 
‘‘(C) TAX EXEMPT BONDS PROCEEDS.—50 
percent of proceeds from the sale of tax exempt 
bonds.
revenue that is not derived from Federal 
sources, including any State tax revenue. 
‘‘(2) USE
OF
MATCHING
AMOUNTS.—Use of 
amounts as provided in this paragraph shall be used 
only for—
‘‘(A) eligible activities relating to afford-
able housing; or 
‘‘(B) eligible activities relating to a project 
not less than 50 percent of the dwelling units 
of which qualify as affordable housing. 
‘‘(3) CERTIFICATION.—The Secretary shall re-
quire eligible recipients to certify to the Secretary 
the amount of funds from non-Federal sources pro-
vided for purposes of subsection (d)(2). 
‘‘(4) REDUCTION OF CONTRIBUTION REQUIRE-
MENT.—
‘‘(A) 50 PERCENT REDUCTION FOR RECIPI-
ENTS IN FISCAL DISTRESS.—If an eligible re-
cipient certifies to the Secretary that it is in fis-
cal distress, the eligible recipient shall be treat-
ed, for purposes of subsection (d)(2), as having 
provided from non-Federal sources for use only 
as provided in subsection (e)(2) an amount 
equal to twice the amount of such funds that
the recipient certifies to the Secretary pursuant 
to paragraph (3) of this subsection. 
‘‘(B) INAPPLICABILITY OF MATCHING RE-
QUIREMENT FOR RECIPIENTS IN SEVERE FIS-
CAL DISTRESS.—If an eligible recipient certifies 
to the Secretary that it is in severe fiscal dis-
tress, subsection (d)(2) shall not apply to such 
eligible recipient. 
‘‘(g) GRANTS FOR INELIGIBLE RECIPIENTS AND RE-
CIPIENTS WITH INSUFFICIENT MATCHING CONTRIBU-
TIONS.—
‘‘(1) AVAILABLE AMOUNTS.—For a fiscal year, 
the following amounts shall be available for grants 
under this subsection: 
‘‘(A) ALLOCATION
FOR
INELIGIBLE
RE-
CIPIENT.—With respect to each ineligible recipi-
ent, the amount of the allocation for the State 
or participating local jurisdiction for such fiscal 
year determined under subsection (c). 
‘‘(B) UNMATCHED
PORTION
OF
ALLOCA-
TION.—With respect to any eligible recipient for 
which the amount of the grant assistance for 
such fiscal year is determined under subsection 
(d)(2), the amount by which the allocation de-
termined under subsection (c) for the eligible
recipient for the fiscal year exceeds the grant 
assistance for the eligible recipient for the fiscal 
year. 
‘‘(2) NOTICE.—For each fiscal year, not later 
than 60 days after the date that the Secretary deter-
mines that the amounts described in paragraph (1) 
shall be available for grants under this subsection, 
the Secretary shall cause to be published in the Fed-
eral Register a notice that such amounts shall be so 
available. 
‘‘(3) APPLICATIONS.—The Secretary shall pro-
vide for nonprofit and public entities (and consortia 
thereof, which may include units of local government 
working together on a regional basis) to submit ap-
plications, during the 9-month period beginning 
upon publication of a notice of funding availability 
under paragraph (2), for a grant of all or a portion 
of the amounts referred to in paragraph (1). Such 
an application shall include—
‘‘(A) a certification that the applicant will 
provide supplemental amounts in accordance 
with paragraph (5)(B)(i); and 
‘‘(B) an allocation plan described in para-
graph (5)(B)(ii).
‘‘(4) SELECTION
CRITERIA.—The Secretary 
shall, by regulation, establish criteria for selecting 
applicants that meet the requirements of paragraph 
(3) for funding under this subsection. Such criteria 
shall give priority to applications that provide that 
grant amounts under this subsection will be used for 
eligible activities relating to affordable housing that 
is located in the State for which such grant funds 
were originally allocated under subsection (c). 
‘‘(5) AWARD
AND
USE
OF
GRANT
ASSIST-
ANCE.—
‘‘(A) AWARD OF GRANTS.—Subject only to 
the absence of applications meeting the require-
ments of paragraph (3), upon the expiration of 
the period referred to in such paragraph, the 
Secretary shall select an applicant or applicants 
under this subsection to receive the amounts 
available under paragraph (1) and shall make a 
grant or grants to such applicant or applicants. 
The selection shall be based upon the criteria 
established under paragraph (4). 
‘‘(B) GRANT REQUIREMENTS.—Grant as-
sistance under this subsection shall be subject 
to the following requirements:
‘‘(i) 
MATCHING
AMOUNTS.—The 
grantee 
shall 
supplement 
any 
grant 
amounts received under this subsection 
with an amount equal to 25 percent of 
such grant amounts. 
‘‘(ii) USE.—Grant amounts received 
under this subsection shall be used in ac-
cordance with an allocation plan that 
meets the requirements of section 295(e) 
and provides that any assistance provided 
to the applicant under this subsection, and 
any supplemental amounts provided by the 
applicant pursuant to clause (i), shall be 
used only to carry out eligible activities.
‘‘SEC. 295. USE OF ASSISTANCE BY RECIPIENTS. 
‘‘(a) DISTRIBUTION TO ELIGIBLE ENTITIES.—Each 
eligible recipient that receives a grant under this subtitle 
shall distribute the grant amounts (excluding any amounts 
used under subsection (b)) to eligible entities for use by 
such entities only for eligible activities in the jurisdiction 
of the eligible recipient, as follows: 
‘‘(1) USE
FOR
RENTAL
HOUSING
FOR
EX-
TREMELY LOW-INCOME FAMILIES.—Not less than 45 
percent of such amounts shall be distributed for use 
only for eligible activities relating to affordable hous-
ing in the jurisdiction of the eligible recipient that 
is available for rental by families (as such term is 
defined in section 3(b) of the United States Housing 
Act of 1937 (42 U.S.C. 1437a(b))) whose incomes 
do not exceed 30 percent of the greater of—
‘‘(A) the median family income for the 
area in which the housing is located, as deter-
mined by the Secretary with adjustments for 
smaller and larger families; and 
‘‘(B) the median family income for the 
State in which the housing is located, as deter-
mined by the Secretary with adjustments for 
smaller and larger families. 
Such rental housing shall include limited equity co-
operative housing, as such term is defined in section 
143(k) of the Internal Revenue Code of 1986 (26 
U.S.C 143(k)). 
‘‘(2) USE FOR RENTAL HOUSING FOR MINIMUM 
WAGE-INCOME FAMILIES.—Not less than 30 percent 
of such amounts shall be distributed for use only for 
eligible activities relating to affordable housing in 
the jurisdiction of the eligible recipient that is avail-
able for rental by families (as such term is defined 
in section 3(b) of the United States Housing Act of 
1937 (42 U.S.C. 1437a(b))) whose incomes do not
exceed the amount earned by one individual who is 
employed on a full-time basis in a position that pays 
the greater of—
‘‘(A) the Federal minimum wage under 
section 6(a)(1) of the Fair Labor Standards 
Act of 1938 (29 U.S.C. 206(a)(1)); and 
‘‘(B) the minimum wage under the laws of 
the State in which the housing is located. 
Such rental housing shall include limited equity co-
operative housing, as such term is defined in section 
143(k) of the Internal Revenue Code of 1986 (26 
U.S.C 143(k)). 
‘‘(3) USE
FOR
RENTAL
HOUSING
OR
HOME-
OWNERSHIP
ASSISTANCE
FOR
LOW-INCOME
FAMI-
LIES.—Not more than 25 percent of such amounts 
shall be distributed for use only for eligible activities 
relating to affordable housing in the jurisdiction of 
the eligible recipient that is available for rental by 
families (as such term is defined in section 3(b) of 
the United States Housing Act of 1937 (42 U.S.C. 
1437a(b))) whose incomes do not exceed 80 percent 
of the greater of—
‘‘(A) the median family income for the 
area in which the housing is located, as deter-
mined by the Secretary with adjustments for 
smaller and larger families, and 
‘‘(B) the median family income for the 
State in which the housing is located, as deter-
mined by the Secretary with adjustments for 
smaller and larger families, 
or for homeownership assistance for such families in 
the jurisdiction of the eligible recipient. Such rental 
housing and homes for homeownership shall include 
housing of a cooperative housing corporation, as 
such term is defined in section 216(b) of the Inter-
nal Revenue Code of 1986 (26 U.S.C 216(b)). 
‘‘(b) OPERATING
ASSISTANCE
FOR
NONPROFIT 
HOUSING DEVELOPMENT ORGANIZATIONS.—An eligible 
entity that receives a grant under this subtitle may use 
not more than 5 percent of such grant amounts to provide 
assistance to nonprofit organizations involved in the devel-
opment, rehabilitation, or preservation of affordable rental 
housing for payment of operating costs of such organiza-
tions. Such nonprofit organizations shall include commu-
nity housing development organizations (as such term is 
defined in section 104 of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 12704)), community 
development financial institutions (as such term is defined 
in section 103 of the Community Development Banking
and Financial Institutions Act of 1994 (12 U.S.C. 4702)), 
community development corporations (as such term is de-
fined in section 31131 of the National Community Eco-
nomic Partnership Act of 1994 (42 U.S.C. 13851)), and 
community-based development organizations. 
‘‘(c) COST LIMITS.—The Secretary shall establish 
limitations on the amount of grant amounts that may be 
used, on a per unit basis, for eligible activities. Such limi-
tations shall be the same as the per unit cost limits estab-
lished pursuant to section 212(e) of the Cranston-Gon-
zalez National Affordable Housing Act (42 U.S.C. 
12742(e)), as adjusted annually, and established by num-
ber of bedrooms, market area, and eligible activity. 
‘‘(d) ELIGIBLE RECIPIENTS.—With respect to a fis-
cal year, a State or participating local jurisdiction shall 
be an eligible recipient for purposes of this subtitle for 
such fiscal year only if the State or participating local ju-
risdiction has established an allocation plan that has been 
submitted to the Secretary and reviewed and approved by 
the Secretary as in accordance with subsection (e). The 
Secretary may disapprove an allocation plan only if the 
plan fails to comply with requirements set forth in this 
section. 
‘‘(e) ALLOCATION PLAN.—
‘‘(1) IN GENERAL.—An allocation plan in ac-
cordance with this subsection is a plan, established 
by a State or participating local jurisdiction, as ap-
propriate, for a fiscal year, for the distribution of 
grant amounts provided to the State or participating 
local jurisdiction under this subtitle for such fiscal 
year that is based on priority housing needs, as de-
termined by the State or participating local jurisdic-
tion. 
‘‘(2) ESTABLISHMENT.—In establishing an allo-
cation plan, the State or participating local jurisdic-
tion shall notify the public of the establishment of 
the plan, provide an opportunity for public com-
ments regarding the plan, consider any public com-
ments received, and make the completed plan avail-
able to the public. 
‘‘(3) CONTENTS.—An allocation plan of a State 
or participating local jurisdiction shall include the 
following information: 
‘‘(A) APPLICATION
REQUIREMENTS
FOR 
ELIGIBLE ENTITIES AND SUBRECIPIENTS.—The 
allocation plan shall set forth the requirements 
for eligible entities and eligible subrecipients to 
apply to receive assistance from grant amounts
under this subtitle, including a requirement 
that each such application include—
‘‘(i) a description of the eligible activi-
ties to be conducted using such assistance; 
and 
‘‘(ii) a certification by the applicant 
that any housing units assisted with such 
assistance will comply with the require-
ments under—
‘‘(I) section 296(1)(A) (relating 
to rents charged); 
‘‘(II) section 296(1)(B) (relating 
to tenant rent contribution); 
‘‘(III) section 296(1)(C) (relating 
to availability of units for voucher 
holders); 
‘‘(IV) section 296(1)(D) (relating 
to use as affordable housing for 50 
years); 
‘‘(V) section 296(1)(E) (relating 
to mixed income); and 
‘‘(VI) section 808(d) of the Fair 
Housing Act (relating to the obliga-
tion to affirmatively further fair hous-
ing).
‘‘(B) SELECTION AND PREFERENCE CRI-
TERIA FOR ELIGIBLE ENTITIES AND SUBRECIPI-
ENTS.—The allocation plan shall set forth the 
factors for consideration in selecting among ap-
plicants that meet the application requirements 
set forth pursuant to subparagraph (A), which 
shall give preference to applicants based on— 
‘‘(i) the amount of assistance lever-
aged by the applicant from private and 
other non-Federal sources for carrying out 
the eligible activities to be funded with as-
sistance from grant amounts under this 
subtitle, including assistance made avail-
able under section 8 of the United States 
Housing Act of 1937 (42 U.S.C. 1437f) 
that is devoted to the project that contains 
the affordable housing to be assisted with 
such assistance; 
‘‘(ii) the extent of local assistance that 
will be provided in carrying out the eligible 
activities, including—
‘‘(I) financial assistance; 
‘‘(II) the extent to which the ap-
plicant has worked to address issues 
of siting and exclusionary zoning or
other policies that are barriers to af-
fordable housing with the unit of gen-
eral local government in which the 
housing to be assisted with such as-
sistance will be located; and 
‘‘(III) the extent to which the ap-
plicant has worked with the unit of 
general local government to reduce 
the barriers to affordable housing; 
‘‘(iii) the degree to which the project 
in which the affordable housing will be lo-
cated will have residents of various in-
comes; 
‘‘(iv) the extent of employment and 
other economic opportunities for low-in-
come families in the area in which the 
housing will be located; 
‘‘(v) the extent to which the applicant 
demonstrates the ability to maintain dwell-
ing units as affordable housing through the 
use of assistance made available under this 
subtitle, assistance leveraged from non-
Federal sources, assistance made available 
under section 8 of the United States Hous-
ing Act of 1937 (42 U.S.C. 1437f), State
or local assistance, programs to increase 
tenant income, cross-subsidization, and any 
other resources; 
‘‘(vi) the extent to which the applicant 
demonstrates that the county in which the 
housing is to be located is experiencing an 
extremely low vacancy rate; 
‘‘(vii) the extent to which the percent-
age of the housing located in such county 
that is extremely old housing exceeds 35 
percent; 
‘‘(viii) the extent to which the housing 
assisted with the grant amounts will be ac-
cessible to persons with disabilities; 
‘‘(ix) the extent to which the applicant 
demonstrates that the affordable housing 
assisted with the grant amounts will be lo-
cated in proximity to public transportation, 
job opportunities, child care, and commu-
nity revitalization projects; and 
‘‘(x) the extent to which the applicant 
has provided that assistance from grant 
amounts made available under this subtitle 
will be used for eligible activities relating 
to housing located in census tracts in
which the number of families having in-
comes less than the poverty line is less 
than 20 percent. 
‘‘(4) CONSOLIDATED
PLAN.—The Secretary 
shall provide that a State or local participating juris-
diction may comply with the requirements under this 
subsection for submission of an allocation plan 
through the inclusion of any appropriate information 
in a single consolidated submission used for pur-
poses of applying for other community planning and 
development and housing assistance programs ad-
ministered by the Secretary. 
‘‘(f) FORMS OF ASSISTANCE.—
‘‘(1) IN GENERAL.—Assistance may be distrib-
uted pursuant to this section in the form of capital 
grants, noninterest bearing or low-interest loans or 
advances, deferred payment loans, guarantees, and
any other forms of assistance approved by the Sec-
retary. 
‘‘(2) REPAYMENTS.—If an eligible recipient 
awards assistance under this section in the form of 
a loan or other mechanism by which funds are later 
repaid to the eligible recipient, any repayments re-
ceived by the eligible recipient shall be distributed by 
the eligible recipient in accordance with the alloca-
tion plan under subsection (e) for the eligible recipi-
ent for the fiscal year in which such repayments are 
made. 
‘‘(g) COORDINATION WITH OTHER ASSISTANCE.—In 
distributing assistance pursuant to this section, each eligi-
ble recipient shall, to the maximum extent practicable, co-
ordinate such distribution with the provision of other Fed-
eral, State, and local housing assistance, including—
‘‘(1) in the case of any State, housing credit 
dollar amounts allocated by the State under section 
42(h) of the Internal Revenue Code of 1986; 
‘‘(2) assistance made available under the 
HOME Investment Partnerships Act (42 U.S.C. 
12721 et seq.) or the community development block 
grant program under title I of the Housing and 
Community Development Act of 1974 (42 U.S.C. 
5301 et seq.); 
‘‘(3) private activity bonds; 
‘‘(4) assistance made available under section 9 
of the United States Housing Act of 1937 (42 
U.S.C. 1437g); 
‘‘(5) assistance made available under section 
8(o) of the United States Housing Act of 1937 (42 
U.S.C. 1437f(o));
‘‘(6) assistance made available under title V of 
the Housing Act of 1949 (42 U.S.C. 1471 et seq.); 
and 
‘‘(7) any other housing assistance programs. 
‘‘(h) EFFECT OF ASSISTANCE UNDER PROGRAM.—
Notwithstanding any other provision of law, the provision 
of assistance under this subtitle for a project shall not re-
duce the amount of assistance for which such project is 
otherwise eligible under section 42(h) of the Internal Rev-
enue Code of 1986 (26 U.S.C. 42(h)) or subtitles A 
through F of this title, if the project does not exceed the 
cost limits established pursuant to subsection (c) of this 
section. 
‘‘(i) ADMINISTRATION
OF
PROGRAM
BY
SUB-
RECIPIENT.—At the discretion of the eligible recipient, an 
eligible recipient may select an eligible subrecipient to 
carry out all or a portion of the recipient’s responsibilities 
under this subtitle, in accordance with this section. 
‘‘(j) LABOR STANDARDS.—Each eligible recipient re-
ceiving grant amounts under this subtitle shall ensure that 
contracts for eligible activities assisted with such amounts 
comply with the same requirements under section 286 of 
the Cranston-Gonzalez National Affordable Housing Act 
(42 U.S.C. 12836) that are applicable to contracts for
construction of affordable housing assisted under such 
Act. 
‘‘(k) FAILURE TO COMPLY.—If the Secretary finds 
after reasonable notice and opportunity for hearing that 
a State or participating local jurisdiction has failed to 
comply substantially with any provision of this subtitle 
and until the Secretary is satisfied that there is no longer 
any such failure to comply, the Secretary shall have the 
authority to discontinue assistance under this subtitle to 
the State or participating local jurisdiction. 
‘‘SEC. 296. DEFINITIONS. 
‘‘For purposes of this subtitle, the following defini-
tions shall apply: 
‘‘(1) AFFORDABLE
HOUSING.—The term ‘af-
fordable housing’ means a rental dwelling unit that 
is subject to legally binding commitments that en-
sure that the dwelling unit meets all of the following 
requirements: 
‘‘(A) RENTS.—The dwelling unit bears a 
rent not greater than the lesser of—
‘‘(i) the existing fair market rental es-
tablished by the Secretary under section 
8(c) of the United States Housing Act of 
1937 (42 U.S.C. 1437f(c)) for a dwelling 
unit of the same size in the same market
area, or the applicable payment standard 
for assistance under section 8(o) of such 
Act, if higher; and 
‘‘(ii) a rent that does not exceed 30 
percent of the adjusted income of a family 
whose income equals 65 percent of the me-
dian income for the area, as determined by 
the Secretary, with adjustment for number 
of bedrooms in the unit, except that the 
Secretary may establish income ceilings 
higher or lower than 65 percent of the me-
dian for the area on the basis of the find-
ings of the Secretary that such variations 
are necessary because of prevailing levels 
of construction costs or fair market rents, 
or unusually high or low family incomes. 
‘‘(B) TENANT RENT CONTRIBUTION.—The 
contribution toward rent by the family residing 
in the dwelling unit will not exceed 30 percent 
of the adjusted income of such family. 
‘‘(C) AVAILABILITY OF UNITS FOR VOUCH-
ER HOLDERS.—The dwelling unit—
‘‘(i) is located in a project within 
which a percentage of units are made 
available only for occupancy by families as-
sisted under the voucher program under 
section 8(o) of the United States Housing 
Act of 1937 (42 U.S.C. 1437f(o)) (includ-
ing project-based assistance under section 
8(o)(13)) on the same basis as other fami-
lies eligible for occupancy of the project 
(except that only the voucher holder’s ex-
pected share of rent shall be considered), 
which percentage shall not be less than the 
percentage of the total cost of developing, 
rehabilitating, or preserving the project 
that is funded with assistance under this 
subtitle; and 
‘‘(ii) is one of the units that is subject 
to such occupancy requirements. 
‘‘(D) 
NON-DISCRIMINATION
AGAINST 
VOUCHER HOLDERS.—The dwelling unit is lo-
cated in a project in which all dwelling units 
are subject to enforceable restrictions that pro-
vide that a unit may not be refused for leasing 
to a holder of a voucher of eligibility under sec-
tion 8 of the United States Housing Act of 
1937 (42 U.S.C. 1437f) because of the status 
of the prospective tenant as a holder of such 
voucher.
‘‘(E) MIXED INCOME.—
‘‘(i) IN GENERAL.—The dwelling unit 
is located in a project in which not more 
than 50 percent of the rental units in the 
project that receive assistance under this 
subtitle and are not previously occupied 
may be rented initially to families with in-
comes described in section 295(a)(1), as 
determined at a reasonable time before oc-
cupancy. 
‘‘(ii) EXCEPTIONS.—Clause (i) shall 
not apply in the case of a project having 
not more than 25 dwelling units that is—
‘‘(I) located in a census tract in 
which the number of families having 
incomes less than the poverty line is 
less than 20 percent; 
‘‘(II) located in a rural area, as 
such term is defined in section 520 of 
the Housing Act of 1949 (42 U.S.C. 
1490); or 
‘‘(III) specifically made available 
only for households comprised of el-
derly families or disabled families.
‘‘(F) DURATION
OF
USE.—The dwelling 
unit will continue to be subject to the require-
ments under this paragraph for not less than 
50 years. 
‘‘(2) ELIGIBLE ACTIVITIES.—The term ‘eligible 
activities’ means activities relating to providing af-
fordable housing, including—
‘‘(A) the construction of new housing; 
‘‘(B) the acquisition of real property; 
‘‘(C) site preparation and improvement, in-
cluding demolition; 
‘‘(D) rehabilitation of existing housing; 
‘‘(E) the provision of project-based rental 
assistance for not more than 12 months for a 
dwelling unit assisted with grant amounts 
under this subtitle; and 
‘‘(F) providing incentives to maintain ex-
isting housing as affordable housing and to es-
tablish or extend any low-income affordability 
restrictions for such housing, including covering 
capital expenditures and operating costs. 
‘‘(3) ELIGIBLE ENTITY.—The term ‘eligible en-
tity’ includes any public or private nonprofit or for-
profit entity, unit of general local government, re-
gional planning entity, and any other entity engaged
in the development, rehabilitation, or preservation of 
affordable housing, as determined by the Secretary. 
‘‘(4) ELIGIBLE
PARTICIPATING
LOCAL
JURIS-
DICTION.—The term ‘eligible participating local ju-
risdiction’ means a participating local jurisdiction 
that complies with the requirements under section 
295(d). 
‘‘(5) ELIGIBLE RECIPIENT.—The term ‘eligible 
recipient’ means an eligible State or eligible partici-
pating local jurisdiction. 
‘‘(6) ELIGIBLE
STATE.—The term ‘eligible 
State’ means a State that complies with the require-
ments under section 295(d). 
‘‘(7) ELIGIBLE SUBRECIPIENT.—The term ‘eli-
gible subrecipient’ means a public agency or a non-
profit organization, including a community develop-
ment corporation, a community development finan-
cial institution, a State or local housing trust fund, 
and any other intermediary selected by a State or 
participating local jurisdiction to administer all or a 
portion of the State’s or participating local jurisdic-
tion’s responsibilities under this subtitle. The term 
does not include any public agency or nonprofit or-
ganization that receives money from the Trust Fund 
solely as a developer or owner of housing.
‘‘(8) EXTREMELY
LOW
VACANCY
RATE.—The 
term ‘extremely low vacancy rate’ means a housing 
or rental vacancy rate of 2 percent or less. 
‘‘(9) EXTREMELY
OLD
HOUSING.—The term 
‘extremely old housing’ means housing that is 45 
years old or older. 
‘‘(10) FISCAL DISTRESS; SEVERE FISCAL DIS-
TRESS.—The terms ‘fiscal distress’ and ‘severe fiscal 
distress’ have the meanings given such terms in sec-
tion 220(d). 
‘‘(11) FULL-TIME BASIS.—The term ‘full-time 
basis’ means, with respect to employment, on a 40-
hour per week, 52-week per year basis. 
‘‘(12) INELIGIBLE RECIPIENT.—The term ‘ineli-
gible recipient’ means, with respect to a fiscal year, 
a State or participating local jurisdiction that has 
not submitted to the Secretary an allocation plan 
meeting the requirements of section 295(e). 
‘‘(13) PARTICIPATING LOCAL JURISDICTION.—
The term ‘participating local jurisdiction’ means, 
with respect to a fiscal year, any unit of general 
local government (as such term is defined in section 
104 of the Cranston-Gonzalez National Affordable 
Housing Act (42 U.S.C. 12704) that qualifies as a
participating jurisdiction under the HOME Invest-
ment Partnerships Act for such fiscal year. 
‘‘(14) POVERTY LINE.—The term ‘poverty line’ 
has the meaning given such term in section 673(2) 
of the Omnibus Budget Reconciliation Act of 1981, 
including any revision required by such section. 
‘‘(15) 
SECRETARY.—The 
term 
‘Secretary’ 
means the Secretary of Housing and Urban Develop-
ment. 
‘‘(16) STATE.—The term ‘State’ has the mean-
ing given such term in section 3(b) of the United 
States Housing Act of 1937 (42 U.S.C. 1437a(b)). 
‘‘(17) TRUST FUND.—The term ‘Trust Fund’ 
means the National Affordable Housing Trust Fund 
established under section 292. 
‘‘SEC. 297. AUTHORIZATION OF APPROPRIATIONS FOR SEC-
TION 8 PROJECT-BASED ASSISTANCE. 
‘‘There are authorized to be appropriated, for project-
based rental assistance under section 8(o)(13) of the 
United States Housing Act of 1937 (42 U.S.C. 
1437f(o)(13)) provided in connection with dwelling units 
assisted under this subtitle, such sums as may be nec-
essary for each fiscal year to provide such rental assist-
ance on behalf of each family who occupied a dwelling unit 
assisted under this subtitle for which the rent that other-
wise may be charged exceeds 30 percent of the family’s 
adjusted income, as such term is defined in section 3 of 
the United States Housing Act of 1937 (42 U.S.C. 
1437a). 
‘‘SEC. 298. INAPPLICABILITY OF HOME PROVISIONS. 
‘‘Except as specifically provided in this subtitle, no 
requirement under, or provision of, title I or subtitles A 
through F of this title shall apply to assistance provided 
under this subtitle. 
‘‘SEC. 299. REGULATIONS. 
‘‘Not later than 6 months after the date of enactment 
of the National Affordable Housing Trust Fund Act of 
2003, the Secretary of Housing and Urban Development 
shall promulgate regulations to carry out this subtitle.’’. 
(b) CONFORMING AMENDMENT.—Section 201 of the 
Cranston-Gonzalez National Affordable Housing Act (42 
U.S.C. 12701 note) is amended by striking ‘‘This title’’ 
and inserting ‘‘Subtitles A through F of this title’’.
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