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sist order in accordance with section 1341, impose 
civil money penalties in accordance with section 
1345, or order other remedies as set forth in para-
graph (7) of this subsection.’’; 
(B) in paragraph (2)—
(i) by striking ‘‘CONTENTS.—Each 
housing plan’’ and inserting ‘‘HOUSING 
PLAN.—If the Director requires a housing 
plan under this section, such a plan’’; and 
(ii) in subparagraph (B), by inserting 
‘‘and changes in its operations’’ after ‘‘im-
provements’’; 
(C) in paragraph (3)—
(i) by inserting ‘‘comply with any re-
medial action or’’ before ‘‘submit a housing 
plan’’; and 
(ii) by striking ‘‘under subsection 
(b)(3) that a housing plan is required’’; 
(D) in paragraph (4), by striking the first 
two sentences and inserting the following: ‘‘The 
Director shall review each submission by an en-
terprise, including a housing plan submitted 
under this subsection, and not later than 30 
days after submission, approve or disapprove 
the plan or other action. The Director may ex-
124
tend the period for approval or disapproval for 
a single additional 30-day period if the Director 
determines such extension necessary.’’; and 
(E) by adding at the end the following new 
paragraph: 
‘‘(7) ADDITIONAL REMEDIES FOR FAILURE TO 
MEET GOALS.—In addition to ordering a housing 
plan under this section, issuing cease and desist or-
ders under section 1341, and ordering civil money 
penalties under section 1345, the Director may seek 
other actions when an enterprise fails to meet a 
goal, and exercise appropriate enforcement authority 
available to the Director under this Act to prohibit 
the enterprise from entering into new programs and 
new business activities and to order the enterprise to 
suspend programs and business activities pending its 
achievement of the goal.’’. 
SEC. 128. AFFORDABLE HOUSING FUND. 
(a) IN GENERAL.—The Housing and Community De-
velopment Act of 1992 is amended by striking sections 
1337 and 1338 (12 U.S.C. 4562 note) and inserting the 
following new section: 
‘‘SEC. 1337. AFFORDABLE HOUSING FUND. 
‘‘(a) ESTABLISHMENT AND PURPOSE.—Each enter-
prise shall establish and manage an affordable housing
125
fund in accordance with this section. The purpose of the 
affordable housing fund shall be—
‘‘(1) to increase homeownership for extremely 
low-and very low-income families; 
‘‘(2) to increase investment in housing in low-
income areas, and areas designated as qualified cen-
sus tracts or an area of chronic economic distress 
pursuant to section 143(j) of the Internal Revenue 
Code of 1986 (26 U.S.C. 143(j)); 
‘‘(3) to increase and preserve the supply of 
rental and owner-occupied housing for extremely 
low- and very low-income families; 
‘‘(4) to increase investment in public infrastruc-
ture development in connection with housing assisted 
under this section; and 
‘‘(5) to leverage investments from other sources 
in affordable housing and in public infrastructure 
development in connection with housing assisted 
under this section. 
‘‘(b) ALLOCATION OF AMOUNTS BY ENTERPRISES.—
‘‘(1) IN GENERAL.—In accordance with regula-
tions issued by the Director under subsection (k) 
and subject to paragraphs (2) and (3) of this sub-
section and subsection (f)(5), each enterprise shall
126
allocate to the affordable housing fund established 
under subsection (a) by the enterprise—
‘‘(A) in the year in which the effective date 
under section 185 of the Federal Housing Fi-
nance Reform Act of 2005 occurs, 3.5 percent 
of the after-tax income of the enterprise for the 
preceding year; 
‘‘(B) in the year after the year referred to 
in subparagraph (A), 3.5 percent of the after-
tax income of the enterprise for the preceding 
year; and 
‘‘(C) in each of the first three years after 
the year referred to in subparagraph (B), 5 per-
cent of the after-tax income of the enterprise 
for the preceding year. 
‘‘(2) LIMITATION.—An enterprise shall not be 
required to make an allocation for a year to the af-
fordable housing fund of the enterprise established 
under subsection (a) unless the enterprise generated 
after-tax income for the preceding year. 
‘‘(3) SUSPENSION
OF
CONTRIBUTIONS.—The 
Director shall temporarily suspend the allocation 
under paragraph (1) by an enterprise to the afford-
able housing fund of the enterprise upon a finding 
by the Director that such allocations—
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‘‘(A) are contributing, or would contribute, 
to the financial instability of the enterprise; 
‘‘(B) are causing, or would cause, the en-
terprise to be classified as undercapitalized; or 
‘‘(C) are preventing, or would prevent, the 
enterprise from successfully completing a cap-
ital restoration plan under section 1369C. 
‘‘(4) 5-YEAR SUNSET AND REPORT.—
‘‘(A) SUNSET.—The enterprises shall not 
be required to make allocations to the afford-
able housing funds in the 5th year after the 
year in which the effective date under section 
185 of the Federal Housing Finance Reform 
Act of 2005 occurs or in any year thereafter. 
‘‘(B) REPORT
ON
PROGRAM
CONTINU-
ANCE.—Not later 6 months before the end of 
the last year in which the allocations are re-
quired under paragraph (1), the Director shall 
submit to the Committee on Financial Services 
of the House of Representatives and the Com-
mittee on Banking, Housing, and Urban Affairs 
of the Senate a report making recommendations 
on whether the program under this section, in-
cluding the requirement for the enterprises to 
make allocations to the affordable housing