129 
‘‘(A) are contributing, or would contribute, 
to the financial instability of the enterprise; 
‘‘(B) are causing, or would cause, the enter-
prise to be classified as undercapitalized; or 
‘‘(C) are preventing, or would prevent, the 
enterprise from successfully completing a capital 
restoration plan under section 1369C. 
‘‘(3) 5-YEAR SUNSET AND REPORT.— 
‘‘(A) SUNSET.—The enterprises shall not be 
required to make allocations to the affordable 
housing fund in 2012 or in any year thereafter. 
‘‘(B) 
REPORT
ON
PROGRAM
CONTINU-
ANCE.—Not later than June 30, 2011, the Direc-
tor shall submit to the Committee on Financial 
Services of the House of Representatives and the 
Committee on Banking, Housing, and Urban Af-
fairs of the Senate a report making recommenda-
tions on whether the program under this section, 
including the requirement for the enterprises to 
make allocations to the affordable housing fund, 
should be extended and on any modifications for 
the program. 
‘‘(c) AFFORDABLE HOUSING NEEDS FORMULAS.— 
‘‘(1) ALLOCATION FOR 2007.— 
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‘‘(A) ALLOCATION PERCENTAGES FOR LOU-
ISIANA AND MISSISSIPPI.—For purposes of sub-
section (d)(1)(A), the allocation percentages for 
2007 for the grantees under this section for such 
year shall be as follows: 
‘‘(i) The allocation percentage for the 
Louisiana Housing Finance Agency shall be 
75 percent. 
‘‘(ii) The allocation percentage for the 
Mississippi Development Authority shall be 
25 percent. 
‘‘(B) USE IN DISASTER AREAS.—Affordable 
housing grant amounts for 2007 shall be used 
only as provided in subsection (g) only for such 
eligible activities in areas that were subject to a 
declaration by the President of a major disaster 
or emergency under the Robert T. Stafford Dis-
aster Relief and Emergency Assistance Act (42 
U.S.C. 5121 et seq.) in connection with Hurri-
cane Katrina or Rita of 2005. 
‘‘(2) 
ALLOCATION
FORMULA
FOR
OTHER 
YEARS.—The Secretary of Housing and Urban Devel-
opment shall, by regulation, establish a formula to al-
locate, among the States (as such term is defined in 
section 1303) and federally recognized Indian tribes, 
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131 
the amounts provided by the enterprises in each year 
referred to subsection (b)(1), other than 2007, to the 
affordable housing fund established under this section. 
The formula shall be based on the following factors, 
with respect to each State and tribe: 
‘‘(A) The ratio of the population of the 
State or federally recognized Indian tribe to the 
aggregate population of all the States and tribes. 
‘‘(B) The percentage of families in the State 
or federally recognized Indian tribe that pay 
more than 50 percent of their annual income for 
housing costs. 
‘‘(C) The percentage of persons in the State 
or federally recognized Indian tribe that are 
members of extremely low- or very low-income 
families. 
‘‘(D) The cost of developing or carrying out 
rehabilitation of housing in the State or for the 
federally recognized Indian tribe. 
‘‘(E) The percentage of families in the State 
or federally recognized Indian tribe that live in 
substandard housing. 
‘‘(F) The percentage of housing stock in the 
State or for the federally recognized Indian tribe 
that is extremely old housing. 
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132 
‘‘(G) Any other factors that the Secretary 
determines to be appropriate. 
‘‘(3) FAILURE TO ESTABLISH.—If, in any year 
referred to in subsection (b)(1), other than 2007, the 
regulations establishing the formula required under 
paragraph (2) of this subsection have not been issued 
by the date that the Director determines the amounts 
described in subsection (d)(1) to be available for af-
fordable housing fund grants in such year, for pur-
poses of such year any amounts for a State (as such 
term is defined in section 1303 of this Act) that 
would otherwise be determined under subsection (d) 
by applying the formula established pursuant to 
paragraph (2) of this subsection shall be determined 
instead by applying, for such State, the percentage 
that is equal to the percentage of the total amounts 
made available for such year for allocation under sub-
title A of title II of the Cranston-Gonzalez National 
Affordable Housing Act (42 U.S.C. 12741 et seq.) that 
are allocated in such year, pursuant to such subtitle, 
to such State (including any insular area or unit of 
general local government, as such terms are defined in 
section 104 of such Act (42 U.S.C. 12704), that is 
treated as a State under section 1303 of this Act) and 
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133 
to participating jurisdictions and other eligible enti-
ties within such State. 
‘‘(d) ALLOCATION OF FORMULA AMOUNT; GRANTS.— 
‘‘(1) FORMULA AMOUNT.—For each year referred 
to in subsection (b)(1), the Director shall determine 
the formula amount under this section for each grant-
ee, which shall be the amount determined for such 
grantee— 
‘‘(A) for 2007, by applying the allocation 
percentages under subparagraph (A) of sub-
section (c)(1) to the sum of the total amounts al-
located by the enterprises to the affordable hous-
ing fund for such year, less any amounts used 
pursuant to subsection (i)(1); and 
‘‘(B) for any other year referred to in sub-
section (b)(1) (other than 2007), by applying the 
formula established pursuant to paragraph (2) of 
subsection (c) to the sum of the total amounts al-
located by the enterprises to the affordable hous-
ing fund for such year and any recaptured 
amounts available pursuant to subsection (i)(4), 
less any amounts used pursuant to subsection 
(i)(1). 
‘‘(2) NOTICE.—In each year referred to in sub-
section (b)(1), not later than 60 days after the date 
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