118
which may be a private nonprofit organization described 
in section 831 of the American Homeownership and Eco-
nomic Opportunity Act of 2000. 
SEC. 319. (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; and 
(6) 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 
person to receive assistance under section 8 of the United 
States Housing Act of 1937 (42 U.S.C. 1437f), any finan-
cial assistance (in excess of amounts received for tuition) 
that an individual receives under the Higher Education 
Act of 1965 (20 U.S.C. 1001 et seq.), from private 
sources, or an institution of higher education (as defined
119
under the Higher Education Act of 1965 (20 U.S.C. 
1002)), shall be considered income to that individual, ex-
cept for a person over the age of 23 with dependent chil-
dren. 
(c) Not later than 30 days after the date of enact-
ment of this Act, the Secretary of Housing and Urban 
Development shall issue final regulations to carry out the 
provisions of this section. 
SEC. 320. The Secretary of Housing and Urban De-
velopment shall give priority consideration to applications 
from the housing authorities of the Counties of San 
Bernardino and Santa Clara and the City of San Jose, 
California to participate in the Moving to Work Dem-
onstration Agreement under section 204, title V, of the 
Omnibus Consolidated Rescissions and Appropriations Act 
of 1996 (Public Law 104–134, April 26, 1996): Provided, 
That upon turnover, existing requirements on the re-
issuance of Section 8 vouchers shall be maintained to en-
sure that not less than 75 percent of all vouchers shall 
be made available to extremely low-income families. 
SEC. 321. The Secretary of Housing and Urban De-
velopment may, notwithstanding any other provision of 
law, approve additional Moving to Work Demonstration 
Agreements, which are entered into between a public hous-
ing agency and the Secretary under section 204, title V,
120
of the Omnibus Consolidated Rescissions and Appropria-
tions Act of 1996 (Public Law 104–134, April 26, 1996), 
but at no time may the number of active Moving to Work 
Demonstration Agreements exceed 32. 
SEC. 322. For fiscal year 2007 and every fiscal year 
thereafter any obligated balances of contract authority or 
any obligated balances derived from contract authority 
from fiscal year 1974 and prior years shall be deobligated 
and cancelled upon contract expiration or termination. 
SEC. 323. Notwithstanding any other provision of 
law, in fiscal year 2007, in managing and disposing of any 
multifamily property that is owned or held by the Sec-
retary and is occupied primarily by elderly or disabled 
families, the Secretary of Housing and Urban Develop-
ment shall maintain any rental assistance payments under 
section 8 of the United States Housing Act of 1937 that 
are attached to any dwelling units in the property. To the 
extent the Secretary determines that such a multifamily 
property owned or held by the Secretary is not feasible 
for continued rental assistance payments under such sec-
tion 8, the Secretary may, in consultation with the tenants 
of that property, contract for project-based rental assist-
ance payments with an owner or owners of other existing 
housing properties or provide other rental assistance.
121
SEC. 324. None of the funds appropriated or other-
wise made available by this Act or any other Act may be 
used to develop or impose policies or procedures, including 
an account structure, that subjects the Government Na-
tional Mortgage Association to the requirements of the 
Federal Credit Reform Act of 1990 (2 U.S.C. 661 et seq.). 
This section shall not be construed to exempt that entity 
from credit subsidy budgeting or from budget presentation 
requirements previously adopted. 
SEC. 325. (a) Paragraph (2) of section 203(b) of the 
National Housing Act (12 U.S.C. 1709(b)(2)) is amend-
ed—
(1) in subparagraph (A)—
(A) by striking the subparagraph designa-
tion and all that follows through the end of 
clause (i) and inserting the following: 
‘‘(A) not to exceed the lesser of—
‘‘(i) the median house price in the 
area, as determined by the Secretary; or’’; 
(B) in clause (ii)—
(i) by striking ‘‘87 percent of’’; 
(ii) by striking ‘‘for Fiscal Year’’ and 
inserting a comma; and 
(iii) by striking ‘‘48 percent’’ and in-
serting ‘‘65 percent’’; and
122
(2) by striking subparagraph (B) and inserting 
the following: 
‘‘(B) not to exceed the appraised value of 
the property, plus any initial service charges, 
appraisal, inspection and other fees in connec-
tion with the mortgage as approved by the Sec-
retary.’’; 
(b) Paragraph (9) of section 203(b) of the National 
Housing Act (12 U.S.C. 1709(b)(9) is amended by strik-
ing the paragraph designation and all that follows through 
‘‘Provided further, That for’’ and inserting the following: 
‘‘(9) Be executed by a mortgagor who shall 
have paid on account of the property, in cash or its 
equivalent, an amount, if any, as the Secretary may 
determine based on factors determined by the Sec-
retary and commensurate with the likelihood of de-
fault. For’’. 
(c) Section 203(c) of the National Housing Act (12 
U.S.C. 1709(c)) is amended—
(1) in paragraph (2), in the matter preceding 
subparagraph (A), by striking ‘‘Notwithstanding’’ 
and inserting ‘‘Except as provided in paragraph (3) 
and notwithstanding’’; and 
(2) by adding at the end the following new 
paragraph:
123
‘‘(3) FLEXIBLE RISK-BASED PREMIUMS.—
‘‘(A) IN GENERAL.—For any mortgage insured 
by the Secretary under this title that is secured by 
a 1- to 4-family dwelling and for which the loan ap-
plication is received by the mortgagor on or after 
October 1, 2006, the Secretary may establish a 
mortgage insurance premium structure involving a 
single premium payment collected prior to the insur-
ance of the mortgage or periodic payments, or both, 
without regard to any maximum or minimum pre-
mium amounts set forth in this subsection. The rate 
of premium for such a mortgage may vary during 
the mortgage term as long as the basis for deter-
mining the variable rate is established before the 
execution of the mortgage. The Secretary may 
change a premium structure established under this 
subparagraph but only to the extent that such 
change is not applied to any mortgage already exe-
cuted. 
‘‘(B) ESTABLISHMENT
AND
ALTERATION
OF 
PREMIUM STRUCTURE.—A premium structure shall 
be established or changed under subparagraph (A) 
only by providing notice to mortgagees and to the 
Congress, at least 30 days before the premium 
structure is established or changed.
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‘‘(C) CONSIDERATIONS FOR PREMIUM STRUC-
TURE.—When establishing a premium structure 
under subparagraph (A) or when changing such a 
premium structure, the Secretary shall consider the 
following: 
‘‘(i) The effect of the proposed premium 
structure on the Secretary’s ability to meet the 
operational goals of the Mutual Mortgage In-
surance Fund as provided in section 202(a). 
‘‘(ii) Underwriting variables. 
‘‘(iii) The extent to which new pricing 
under the proposed premium structure has po-
tential for acceptance in the private market. 
‘‘(iv) The administrative capability of the 
Secretary to administer the proposed premium 
structure. 
‘‘(v) The effect of the proposed premium 
structure on the Secretary’s ability to maintain 
the availability of mortgage credit and provide 
stability to mortgage markets.’’. 
(d) Section 255 of the National Housing Act (12 
U.S.C. 1715z–20) is amended—
(1) in subsection (g)—
(A) by striking the first sentence; and