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(1) AUTHORITY TO BRING A CIVIL ACTION.—Sec-
tion 1344(a) of the Federal Housing Enterprises Fi-
nancial Safety and Soundness Act of 1992 (12 U.S.C. 
4584) is amended by striking ‘‘The Secretary may re-
quest the Attorney General of the United States to 
bring a civil action’’ and inserting ‘‘The Director 
may bring a civil action’’. 
(2) SUBPOENA ENFORCEMENT.—Section 1348(c) 
of the Federal Housing Enterprises Financial Safety 
and Soundness Act of 1992 (12 U.S.C. 4588(c)) is 
amended by inserting ‘‘may bring an action or’’ be-
fore ‘‘may request’’. 
(3) CONFORMING AMENDMENTS.—Subpart C of 
part 2 of subtitle A of the Federal Housing Enter-
prises Financial Safety and Soundness Act of 1992 
(12 U.S.C. 4581 et seq.) is amended by striking ‘‘Sec-
retary’’ each place that term appears and inserting 
‘‘Director’’ in each of— 
(A) section 1342 (12 U.S.C. 4582); 
(B) section 1343 (12 U.S.C. 4583); 
(C) section 1346 (12 U.S.C. 4586); 
(D) section 1347 (12 U.S.C. 4587); and 
(E) section 1348 (12 U.S.C. 4588).
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SEC. 1131. AFFORDABLE HOUSING PROGRAMS. 
(a) REPEAL.—Section 1337 of the Federal Housing 
Enterprises Financial Safety and Soundness Act of 1992 
(12 U.S.C. 4567) is hereby repealed. 
(b) ANNUAL HOUSING REPORT.—The Federal Housing 
Enterprises Financial Safety and Soundness Act of 1992 
(12 U.S.C. 1301 et seq.) is amended by inserting after sec-
tion 1336 the following: 
‘‘SEC. 1337. AFFORDABLE HOUSING ALLOCATIONS. 
‘‘(a) SET ASIDE AND ALLOCATION OF AMOUNTS BY 
ENTERPRISES.—Subject to subsection (b), in each fiscal 
year— 
‘‘(1) the Federal Home Loan Mortgage Corpora-
tion shall— 
‘‘(A) set aside an amount equal to 4.2 basis 
points for each dollar of the unpaid principal 
balance of its total new business purchases; and 
‘‘(B) allocate or otherwise transfer— 
‘‘(i) 65 percent of such amounts to the 
Secretary of Housing and Urban Develop-
ment to fund the Housing Trust Fund es-
tablished under section 1338; and 
‘‘(ii) 35 percent of such amounts to 
fund the Capital Magnet Fund established 
pursuant to section 1339; and
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‘‘(2) the Federal National Mortgage Association 
shall— 
‘‘(A) set aside an amount equal to 4.2 basis 
points for each dollar of unpaid principal bal-
ance of its total new business purchases; and 
‘‘(B) allocate or otherwise transfer— 
‘‘(i) 65 percent of such amounts to the 
Secretary of Housing and Urban Develop-
ment to fund the Housing Trust Fund es-
tablished under section 1338; and 
‘‘(ii) 35 percent of such amounts to 
fund the Capital Magnet Fund established 
pursuant to section 1339. 
‘‘(b) SUSPENSION OF CONTRIBUTIONS.—The Director 
shall temporarily suspend allocations under subsection (a) 
by an enterprise upon a finding by the Director that such 
allocations— 
‘‘(1) are contributing, or would contribute, to the 
financial instability of the enterprise; 
‘‘(2) are causing, or would cause, the enterprise 
to be classified as undercapitalized; or 
‘‘(3) are preventing, or would prevent, the enter-
prise from successfully completing a capital restora-
tion plan under section 1369C.
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‘‘(c) PROHIBITION OF PASS-THROUGH OF COST OF AL-
LOCATIONS.—The Director shall, by regulation, prohibit 
each enterprise from redirecting the costs of any allocation 
required under this section, through increased charges or 
fees, or decreased premiums, or in any other manner, to 
the originators of mortgages purchased or securitized by the 
enterprise. 
‘‘(d) ENFORCEMENT OF REQUIREMENTS ON ENTER-
PRISE.—Compliance by the enterprises with the require-
ments under this section shall be enforceable under subpart 
C. Any reference in such subpart to this part or to an order, 
rule, or regulation under this part specifically includes this 
section and any order, rule, or regulation under this sec-
tion. 
‘‘(e) REQUIRED
AMOUNT
FOR
HOPE RESERVE 
FUND.—Of the aggregate amount allocated under subsection 
(a), 25 percent shall be deposited into a fund established 
in the Treasury of the United States by the Secretary of 
the Treasury for such purpose. 
‘‘(f) LIMITATION.—No funds under this title may be 
used in conjunction with property taken by eminent do-
main, unless eminent domain is employed only for a public 
use, except that, for purposes of this section, public use shall 
not be construed to include economic development that pri-
marily benefits any private entity.
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‘‘SEC. 1338. HOUSING TRUST FUND. 
‘‘(a) ESTABLISHMENT AND PURPOSE.— 
‘‘(1) IN GENERAL.—The Secretary of Housing 
and Urban Development (in this section referred to as 
the ‘Secretary’) shall establish and manage a Housing 
Trust Fund, which shall be funded with amounts allo-
cated by the enterprises under section 1337 and any 
amounts as are or may be appropriated, transferred, 
or credited to such Housing Trust Fund under any 
other provisions of law. The purpose of the Housing 
Trust Fund under this section is to provide grants to 
States (as such term is defined in section 1303) for 
use— 
‘‘(A) to increase and preserve the supply of 
rental housing for extremely low- and very low- 
income families, including homeless families; 
and 
‘‘(B) to increase homeownership for ex-
tremely low- and very low-income families. 
‘‘(2) FEDERAL ASSISTANCE.—For purposes of the 
application of Federal civil rights laws, all assistance 
provided from the Housing Trust Fund shall be con-
sidered Federal financial assistance. 
‘‘(b) ALLOCATIONS FOR HOPE BOND PAYMENTS.— 
‘‘(1) IN GENERAL.—Notwithstanding subsection 
(c), to help address the mortgage crisis, of the