110TH CONGRESS 
1ST SESSION H. R. 2895 
AN ACT 
To establish the National Affordable Housing Trust Fund 
in the Treasury of the United States to provide for 
the construction, rehabilitation, and preservation of de-
cent, safe, and affordable housing for low-income fami-
lies. 
Be it enacted by the Senate and House of Representa-
tives of the United States of America in Congress assembled,
SECTION 1. SHORT TITLE. 
This Act may be cited as the ‘‘National Affordable 
Housing Trust Fund Act of 2007’’. 
SEC. 2. NATIONAL AFFORDABLE HOUSING TRUST FUND. 
(a) IN GENERAL.—Title II of the Cranston-Gonzalez 
National Affordable Housing Act (42 U.S.C. 12721 et 
seq.) is amended by adding at the end the following new 
subtitle: 
‘‘Subtitle G—National Affordable 
Housing Trust Fund 
‘‘SEC. 291. PURPOSES. 
‘‘The purposes of this subtitle are— 
‘‘(1) to address the national shortage of hous-
ing that is affordable to low-income families by cre-
ating a permanently appropriated fund, with dedi-
cated sources of funding, to finance additional hous-
ing activities, without supplanting existing housing 
appropriations or existing State and local funding 
for affordable housing; 
‘‘(2) to enable rental housing to be built, for 
families with the greatest economic need, in mixed- 
income settings and in areas with the greatest eco-
nomic opportunities; 
‘‘(3) to promote ownership of one-to-four family 
owner-occupied housing by low-income families; and
‘‘(4) to construct, rehabilitate, and preserve at 
least 1,500,000 affordable dwelling units over the 
next decade. 
‘‘SEC. 292. TRUST FUND. 
‘‘(a) ESTABLISHMENT.—There is established in the 
Treasury of the United States a trust fund to be known 
as the National Affordable Housing Trust Fund. 
‘‘(b) DEPOSITS TO TRUST FUND.—The Trust Fund 
shall consist of— 
‘‘(1) any amounts of the Federal National 
Mortgage Association and the Federal Home Loan 
Mortgage Corporation transferred to the Trust 
Fund under title XIII of the Housing and Commu-
nity Development Act of 1992; 
‘‘(2) any amounts appropriated to the Trust 
Fund pursuant to the authorization in the Expand-
ing American Homeownership Act of 2007, relating 
to the use of FHA savings for an affordable housing 
grant fund; and 
‘‘(3) any amounts as are or may be appro-
priated, transferred, or credited to such Fund under 
any other provisions of law. 
‘‘(c) EXPENDITURES FROM TRUST FUND.—Amounts 
in the Trust Fund shall be available to the Secretary of
Housing and Urban Development, and are hereby appro-
priated, for providing assistance under this subtitle. 
‘‘(d) FEDERAL ASSISTANCE.—All assistance provided 
using amounts in the Trust Fund shall be considered to 
be Federal financial assistance. 
‘‘(e) CONDITIONS ON USE OF FHA SAVINGS.— 
‘‘(1) USE.—For each fiscal year, no funds may 
be made available under paragraph (2) of subsection 
(b) unless the amount equal to the net increase for 
such fiscal year in the negative credit subsidy for the 
mortgage insurance programs under title II of the 
National Housing Act resulting from the Expanding 
American Homeownership Act of 2007, and the 
amendments made by such Act, is first made avail-
able for the following purposes in the following 
amounts: 
‘‘(A) SINGLE FAMILY HOUSING MORTGAGE 
INSURANCE.—For each fiscal year, for costs (as 
such term is defined in section 502 of the Fed-
eral Credit Reform Act of 1990 (2 U.S.C. 
661a)) of mortgage insurance provided pursu-
ant to section 203(b) of the National Housing 
Act (12 U.S.C. 1709(b)), the additional amount 
(not including any costs of such mortgage in-
surance resulting from this Act or the amend-
ments made by this Act), if any, necessary to 
ensure that the credit subsidy cost of such 
mortgage insurance for such fiscal year is $0. 
‘‘(B) HOUSING COUNSELING.—For each of 
fiscal years 2008 through 2012, the amount 
needed to increase funding, for the housing 
counseling program under section 106 of the 
Housing and Urban Development Act of 1968 
(12 U.S.C. 1701x), in connection with home-
buyers and homeowners with mortgages insured 
under title II of the National Housing Act, 
from the amount appropriated for the preceding 
fiscal year to $100,000,000. 
‘‘(C) 
MORTGAGE
INSURANCE
TECH-
NOLOGY, PROCEDURES, PROCESSES, PROGRAM 
PERFORMANCE, AND
SALARIES.—For each of 
fiscal years 2008 through 2012, $25,000,000 
for increasing funding for the purpose of im-
proving technology, procedures, processes, and 
program performance, and salaries in connec-
tion with the mortgage insurance programs 
under title II of the National Housing Act. 
‘‘(2) EXCLUSION OF EARNINGS FROM THE SIN-
GLE FAMILY MORTGAGE INSURANCE PROGRAM.—No 
funds under paragraph (2) of subsection (b) for a
fiscal year may be derived from the negative credit 
subsidy cost for such fiscal year, if any, for mort-
gage insurance provided pursuant to section 203(b) 
of the National Housing Act. 
‘‘(3) CERTIFICATION.—No funds may be made 
available under paragraph (2) of subsection (b) for 
any fiscal year unless the Secretary of Housing and 
Urban Development has, by rule making in accord-
ance with section 553 of title 5, United States Code 
(notwithstanding subsections (a)(2), (b)(B), and 
(d)(3) of such section), made a determination that 
premiums being, or to be, charged during such fiscal 
year for mortgage insurance under title II of the 
National Housing Act are established at the min-
imum amount sufficient to comply with the require-
ments of section 205(f) of such Act (relating to re-
quired capital ratio for the Mutual Mortgage Insur-
ance Fund) and ensure the safety and soundness of 
the other mortgage insurance funds under such Act, 
and any negative credit subsidy for such fiscal year 
resulting from such mortgage insurance programs 
adequately ensures the efficient delivery and avail-
ability of such programs.
‘‘(4) LIMITATION
ON
MORTGAGE
INSURANCE 
PREMIUM
INCREASES.—Notwithstanding any other 
provision of law— 
‘‘(A) the premiums charged for mortgage 
insurance under any program under the Na-
tional Housing Act may not be increased above 
the premium amounts in effect under such pro-
gram on October 1, 2006, unless the Secretary 
of Housing and Urban Development determines 
that, absent such increase, insurance of addi-
tional mortgages under such program would, 
under the Federal Credit Reform Act of 1990, 
require the appropriation of new budget author-
ity to cover the costs (as such term is defined 
in section 502 of the Federal Credit Reform 
Act of 1990 (2 U.S.C. 661a) of such insurance; 
and 
‘‘(B) a premium increase pursuant to 
paragraph (1) may be made only by rule mak-
ing in accordance with the procedures under 
section 553 of title 5, United States Code (not-
withstanding subsections (a)(2), (b)(B), and 
(d)(3) of such section).
‘‘SEC. 293. ALLOCATIONS FOR STATES, INDIAN TRIBES, IN-
SULAR AREAS, AND PARTICIPATING LOCAL 
JURISDICTIONS. 
‘‘(a) DETERMINATION OF AMOUNT AVAILABLE FOR 
FISCAL YEAR.—For fiscal year 2008 and for each fiscal 
year thereafter, the Secretary shall determine the total 
amount available from the Trust Fund pursuant to section 
292(c) for assistance under this subtitle and shall use such 
amount to provide such assistance for such fiscal year. 
‘‘(b) ALLOCATION.—For each such fiscal year, of 
such total amount available from the Trust Fund, the Sec-
retary shall allocate for use under section 294— 
‘‘(1) 40 percent for States, Indian tribes, and 
insular areas; and 
‘‘(2) 60 percent for participating local jurisdic-
tions. 
‘‘SEC. 294. ASSISTANCE FROM TRUST FUND. 
‘‘(a) AFFORDABLE HOUSING NEEDS FORMULA.— 
‘‘(1) ESTABLISHMENT
AND
FACTORS.—The 
Secretary shall establish a formula to allocate 
amounts made available for a fiscal year for assist-
ance under this subtitle among States, all Indian 
tribes, insular areas, and participating local jurisdic-
tions based on the relative needs of such entities, for 
funds to increase the supply of decent quality afford-
able housing. The formula shall be based upon a
comparison of the following factors with respect to 
each State, Indian tribes, each insular area, and 
each participating local jurisdiction: 
‘‘(A) The ratio of the population of the 
State, Indian tribes, insular area, or partici-
pating jurisdiction, to the aggregate population 
of all States, Indian tribes, insular areas, and 
participating jurisdictions. 
‘‘(B) The percentage of families in the ju-
risdiction of the State, of Indian tribes, or of 
the insular area or participating jurisdiction 
that live in substandard housing. 
‘‘(C) The percentage of families in the ju-
risdiction of the State, of Indian tribes, or of 
the insular area or participating jurisdiction 
that pay more than 50 percent of their annual 
income for housing costs. 
‘‘(D) The percentage of persons in the ju-
risdiction of the State, of Indian tribes, or of 
the insular area or participating jurisdiction 
having an income at or below the poverty line. 
‘‘(E) The cost of constructing or carrying 
out rehabilitation of housing in the jurisdiction 
of the State, of Indian tribes, or of the insular 
area or participating jurisdiction.
‘‘(F) The percentage of the population of 
the State, of Indian tribes, or of the insular 
area or participating jurisdiction that resides in 
counties having extremely low vacancy rates. 
‘‘(G) The percentage of housing stock in 
the jurisdiction of the State, of Indian tribes, or 
of the insular area or participating jurisdiction 
that is extremely old housing. 
‘‘(H) For the jurisdiction of a State, of In-
dian tribes, or of an insular area or partici-
pating jurisdiction that has an extremely low 
percentage of affordable rental housing, the ex-
tent to which the State, Indian tribes, or the in-
sular area or participating jurisdiction has in 
the preceding fiscal year increased the percent-
age of rental housing within its jurisdiction that 
is affordable housing. 
‘‘(I) Any other factors that the Secretary 
determines to be appropriate. 
‘‘(2) FAILURE TO ESTABLISH.—If, in any fiscal 
year referred to in section 293(a), the regulations 
establishing the formula required under paragraph 
(1) of this subsection have not been issued by the 
date that the Secretary determines the total amount 
available from the Trust Fund for assistance under
this subtitle for such fiscal year pursuant to section 
292(c), or there has been enacted before such date 
a joint resolution expressly disapproving the use of 
the formula required under paragraph (1) and sub-
mitted to the Congress pursuant to paragraph (3), 
for purposes of such fiscal year— 
‘‘(A) section 293(b), paragraphs (2) and 
(3) of subsection (b) of this section, and sub-
section (c) of this section shall not apply; 
‘‘(B) the allocation for Indian tribes shall 
be such amount as the Secretary shall establish; 
and 
‘‘(C) the formula amount for each State, 
insular area, or participating local jurisdiction 
shall be determined by applying, for such State, 
insular area, or participating local jurisdiction, 
the percentage that is equal to the percentage 
of the total amounts made available for such 
fiscal year for allocation under subtitle A of this 
title (42 U.S.C. 12741 et seq.) that are allo-
cated in such year, pursuant to such subtitle, to 
such State, insular area, or participating local 
jurisdiction, respectively, and the allocation for 
each State, insular area, or participating juris-
diction, for purposes of subsection (e) shall, ex-
cept as provided in subsection (d), be the for-
mula amount for the State, insular area, or 
participating jurisdiction, respectively. 
‘‘(3) SUBMISSION
TO
CONGRESS.—Notwith-
standing any other provision of this subtitle, any for-
mula established by the Secretary pursuant to this 
subsection shall be submitted to the Committee on 
Financial Services of the House of Representatives 
and the Committee on Banking, Housing, and 
Urban Affairs of the Senate not less than 120 days 
before application of the formula for purposes of de-
termining formula amounts under subsection (b) for 
a fiscal year. Such submission shall be accompanied 
by a detailed explanation of the factors under the 
formula and anticipated effects of the formula. 
‘‘(b) FORMULA AMOUNT.— 
‘‘(1) IN
GENERAL.—For each fiscal year re-
ferred to in section 293(a), the Secretary shall deter-
mine the formula amount under this subsection for 
each State, for Indian tribes, for each insular area, 
and for each participating local jurisdiction. 
‘‘(2) STATES, INDIAN
TRIBES, AND
INSULAR 
AREAS.—The formula amount for each State, for In-
dian tribes, and for each insular area shall be the 
amount determined for such State, for Indian tribes,