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able to extremely low-income renter households’ 
means for any State or other geographical area 
the gap between— 
‘‘(i) the number of units with complete 
plumbing and kitchen facilities with a rent 
that is 30 percent or less of 30 percent of 
the adjusted area median income as deter-
mined by the Secretary that are occupied by 
extremely low-income renter households or 
are vacant for rent; and 
‘‘(ii) the number of extremely low-in-
come renter households. 
‘‘(B) RULE
OF
CONSTRUCTION.—If the 
number of units described in subparagraph 
(A)(i) exceeds the number of extremely low-in-
come households as described in subparagraph 
(A)(ii), there is no shortage. 
‘‘(4) SHORTAGE
OF
STANDARD
RENTAL
UNITS 
BOTH AFFORDABLE AND AVAILABLE TO VERY LOW-IN-
COME RENTER HOUSEHOLDS.— 
‘‘(A) IN GENERAL.—The term ‘shortage of 
standard rental units both affordable and avail-
able to very low-income renter households’ means 
for any State or other geographical area the gap 
between—
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‘‘(i) the number of units with complete 
plumbing and kitchen facilities with a rent 
that is 30 percent or less of 50 percent of 
the adjusted area median income as deter-
mined by the Secretary that are occupied by 
very low-income renter households or are 
vacant for rent; and 
‘‘(ii) the number of very low-income 
renter households. 
‘‘(B) RULE
OF
CONSTRUCTION.—If the 
number of units described in subparagraph 
(A)(i) exceeds the number of very low-income 
households as described in subparagraph (A)(ii), 
there is no shortage. 
‘‘(5) VERY LOW-INCOME FAMILY.—The term ‘very 
low-income family’ has the meaning given such term 
in section 1303, except that such term includes any 
family that resides in a rural area that has an in-
come that does not exceed the poverty line (as such 
term is defined in section 673(2) of the Omnibus 
Budget Reconciliation Act of 1981 (42 U.S.C. 
9902(2)), including any revision required by such sec-
tion) applicable to a family of the size involved. 
‘‘(6) 
VERY
LOW-INCOME
RENTER
HOUSE-
HOLDS.—The term ‘very low-income renter house-
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holds’ means a household whose income is in excess of 
30 percent but not greater than 50 percent of the area 
median income, with adjustments for smaller and 
larger families, as determined by the Secretary. 
‘‘(g) REGULATIONS.— 
‘‘(1) IN
GENERAL.—The Secretary shall issue 
regulations to carry out this section. 
‘‘(2) REQUIRED
CONTENTS.—The regulations 
issued under this subsection shall include— 
‘‘(A) a requirement that the Secretary en-
sure that the use of grant amounts under this 
section by States or State designated entities is 
audited not less than annually to ensure compli-
ance with this section; 
‘‘(B) authority for the Secretary to audit, 
provide for an audit, or otherwise verify a State 
or State designated entity’s activities to ensure 
compliance with this section; 
‘‘(C) a requirement that, for the purposes of 
subparagraphs (A) and (B), any financial state-
ment submitted by a grantee or recipient to the 
Secretary shall be reviewed by an independent 
certified public accountant in accordance with 
Statements on Standards for Accounting and
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Review Services, issued by the American Insti-
tute of Certified Public Accountants; 
‘‘(D) requirements for a process for applica-
tion to, and selection by, each State or State des-
ignated entity for activities meeting the State or 
State designated entity’s priority housing needs 
to be funded with grant amounts under this sec-
tion, which shall provide for priority in funding 
to be based upon— 
‘‘(i) geographic diversity; 
‘‘(ii) ability to obligate amounts and 
undertake activities so funded in a timely 
manner; 
‘‘(iii) in the case of rental housing 
projects under subsection (c)(7)(A), the ex-
tent to which rents for units in the project 
funded are affordable, especially for ex-
tremely low-income families; 
‘‘(iv) in the case of rental housing 
projects under subsection (c)(7)(A), the ex-
tent of the duration for which such rents 
will remain affordable; 
‘‘(v) the extent to which the application 
makes use of other funding sources; and
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‘‘(vi) the merits of an applicant’s pro-
posed eligible activity; 
‘‘(E) requirements to ensure that grant 
amounts provided to a State or State designated 
entity under this section that are used for rental 
housing under subsection (c)(7)(A) are used only 
for the benefit of extremely low- and very low-in-
come families; and 
‘‘(F) requirements and standards for estab-
lishment, by a State or State designated entity, 
for use of grant amounts in 2009 and subsequent 
years of performance goals, benchmarks, and 
timetables for the production, preservation, and 
rehabilitation of affordable rental and home-
ownership housing with such grant amounts. 
‘‘(h) AFFORDABLE HOUSING TRUST FUND.—If, after 
the date of enactment of the Federal Housing Finance Regu-
latory Reform Act of 2008, in any year, there is enacted 
any provision of Federal law establishing an affordable 
housing trust fund other than under this title for use only 
for grants to provide affordable rental housing and afford-
able homeownership opportunities, and the subsequent year 
is a year referred to in subsection (c), the Secretary shall 
in such subsequent year and any remaining years referred 
to in subsection (c) transfer to such affordable housing trust
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fund the aggregate amount allocated pursuant to subsection 
(c) in such year. Notwithstanding any other provision of 
law, assistance provided using amounts transferred to such 
affordable housing trust fund pursuant to this subsection 
may not be used for any of the activities specified in clauses 
(i) through (vi) of subsection (c)(9)(D). 
‘‘(i) 
FUNDING
ACCOUNTABILITY
AND
TRANS-
PARENCY.—Any grant under this section to a grantee by 
a State or State designated entity, any assistance provided 
to a recipient by a State or State designated entity, and 
any grant, award, or other assistance from an affordable 
housing trust fund referred to in subsection (h) shall be con-
sidered a Federal award for purposes of the Federal Fund-
ing Accountability and Transparency Act of 2006 (31 
U.S.C. 6101 note). Upon the request of the Director of the 
Office of Management and Budget, the Secretary shall ob-
tain and provide such information regarding any such 
grants, assistance, and awards as the Director of the Office 
of Management and Budget considers necessary to comply 
with the requirements of such Act, as applicable, pursuant 
to the preceding sentence. 
‘‘SEC. 1339. CAPITAL MAGNET FUND. 
‘‘(a) ESTABLISHMENT.—There is established in the 
Treasury of the United States a trust fund to be known 
as the Capital Magnet Fund, which shall be a special ac-