117 
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-
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 
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118 
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 initially offering any product (as 
such term is defined in section 1321(f)) or engaging 
in any new activities, services, undertakings, and of-
ferings and to order the enterprise to suspend prod-
ucts and activities, services, undertakings, and offer-
ings 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.—The Direc-
tor, in consultation with the Secretary of Housing and 
Urban Development, shall establish and manage an af-
fordable housing fund in accordance with this section, 
which shall be funded with amounts allocated by the enter-
prises under subsection (b). The purpose of the affordable 
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119 
housing fund shall be to provide formula grants to grant-
ees for use— 
‘‘(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 (m) 
and subject to paragraph (2) of this subsection and 
subsection (i)(5), each enterprise shall allocate to the 
affordable housing fund established under subsection 
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120 
(a), in each of the years 2007 through 2011, an 
amount equal to 1.2 basis points for each dollar of 
the average total mortgage portfolio of the enter-
prise during the preceding year. 
‘‘(2) SUSPENSION
OF
CONTRIBUTIONS.—The 
Director shall temporarily suspend the allocation 
under paragraph (1) by an enterprise to the afford-
able housing fund upon a finding by the Director 
that such allocations— 
‘‘(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. 
‘‘(3) 5-YEAR SUNSET AND REPORT.— 
‘‘(A) SUNSET.—The enterprises shall not 
be required to make allocations to the afford-
able housing fund in 2012 or in any year there-
after. 
‘‘(B) REPORT
ON
PROGRAM
CONTINU-
ANCE.—Not later than June 30, 2011, the Di-
rector shall submit to the Committee on Finan-
cial Services of the House of Representatives 
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