with disabilities, the dwelling unit complies with 
such basic visitability standards as the Secretary 
shall by regulation provide. 
‘‘(6) DURATION
OF
USE.—The dwelling unit 
will continue to be subject to all requirements under 
this subsection for not less than 50 years. 
‘‘(b) OWNER-OCCUPIED HOUSING.—For purposes of 
any eligible activity involving one- to four-family owner- 
occupied housing (which may include housing of a cooper-
ative housing corporation, as such term is defined in sec-
tion 216(b) of the Internal Revenue Code of 1986 (26 
U.S.A. 216(b))), such a residence shall be considered af-
fordable housing for purposes of this subtitle only if— 
‘‘(1) in the case of housing to be made available 
for purchase— 
‘‘(A) the housing is available for purchase 
only for use as a principal residence by families 
that qualify as first-time homebuyers, as such 
term is defined in section 104 (42 U.S.C. 
12704), except that any reference in such sec-
tion to assistance under title II of this Act shall 
for purposes of this section be considered to 
refer to assistance from Trust Fund grant 
amounts; 
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‘‘(B) the housing has an initial purchase 
price that meets the requirements of section 
215(b)(1); and 
‘‘(C) the housing is subject to the same re-
sale restrictions established under section 
215(b)(3) and applicable to the participating 
jurisdiction that is the State in which such 
housing is located; and 
‘‘(2) the housing is made available for purchase 
only by, or in the case of assistance to a homebuyer 
pursuant to this subsection, the assistance is made 
available only to, homebuyers who have, before pur-
chase, completed a program of counseling with re-
spect to the responsibilities and financial manage-
ment involved in homeownership that is approved by 
the Secretary; except that the Secretary may, at the 
request of a State, waive the requirements of this 
paragraph with respect to a geographic area or 
areas within the State if— 
‘‘(A) the travel time or distance involved in 
providing counseling with respect to such area 
or areas, as otherwise required under this para-
graph, on an in-person basis is excessive or the 
cost of such travel is prohibitive; and 
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‘‘(B) the State provides alternative forms 
of counseling for such area or areas, which may 
include interactive telephone counseling, on-line 
counseling, interactive video counseling, and 
interactive home study counseling and a pro-
gram of financial literacy and education to pro-
mote an understanding of consumer, economic, 
and personal finance issues and concepts, in-
cluding saving for retirement, managing credit, 
long-term care, and estate planning and edu-
cation on predatory lending, identity theft, and 
financial abuse schemes relating to homeowner-
ship that is approved by the Secretary, except 
that entities providing such counseling shall not 
discriminate against any particular form of 
housing; and 
‘‘SEC. 298. OTHER PROVISIONS. 
‘‘(a) EFFECT OF ASSISTANCE UNDER PROGRAM.— 
Notwithstanding any other provision of law, the provision 
of assistance under this subtitle for a project shall not re-
duce the amount of assistance for which such project is 
otherwise eligible under subtitles A through F of this title, 
if the project does not exceed the cost limits established 
pursuant to section 296(e). 
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‘‘(b) ACCOUNTABILITY OF GRANTEES AND RECIPI-
ENTS.— 
‘‘(1) RECIPIENTS.— 
‘‘(A) TRACKING
OF
FUNDS.—The Sec-
retary shall— 
‘‘(i) require each grantee to develop 
and maintain a system to ensure that each 
recipient of assistance from Trust Fund 
grant amounts of the grantee uses such 
amounts in accordance with this subtitle, 
the regulations issued under this subtitle, 
and any requirements or conditions under 
which such amounts were provided; and 
‘‘(ii) establish minimum requirements 
for agreements, between the grantee and 
recipients, regarding assistance from the 
Trust Fund grant amounts of the grantee, 
which shall include— 
‘‘(I) appropriate continuing fi-
nancial and project reporting, record 
retention, and audit requirements for 
the duration of the grant to the re-
cipient to ensure compliance with the 
limitations and requirements of this 
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subtitle and the regulations under this 
subtitle; and 
‘‘(II) any other requirements that 
the Secretary determines are nec-
essary to ensure appropriate grant ad-
ministration and compliance. 
‘‘(B) MISUSE OF FUNDS.— 
‘‘(i) 
REIMBURSEMENT
REQUIRE-
MENT.—If any recipient of assistance from 
Trust Fund grant amounts of a grantee is 
determined, in accordance with clause (ii), 
to have used any such amounts in a man-
ner that is materially in violation of this 
subtitle, the regulations issued under this 
subtitle, or any requirements or conditions 
under which such amounts were provided, 
the grantee shall require that, within 12 
months after the determination of such 
misuse, the recipient shall reimburse the 
grantee for such misused amounts and re-
turn to the grantee any amounts from the 
Trust Fund grant amounts of the grantee 
that remain unused or uncommitted for 
use. The remedies under this clause are in 
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addition to any other remedies that may be 
available under law. 
‘‘(ii) DETERMINATION.—A determina-
tion is made in accordance with this clause 
if the determination is— 
‘‘(I) made by the Secretary ; or 
‘‘(II)(aa) made by the grantee; 
‘‘(bb) the grantee provides notifi-
cation of the determination to the 
Secretary for review, in the discretion 
of the Secretary, of the determination; 
and 
‘‘(cc) the Secretary does not sub-
sequently reverse the determination. 
‘‘(2) GRANTEES.— 
‘‘(A) REPORT.— 
‘‘(i) IN
GENERAL.—The Secretary 
shall require each grantee receiving Trust 
Fund grant amounts for a fiscal year to 
submit a report, for such fiscal year, to the 
Secretary that— 
‘‘(I) describes the activities fund-
ed under this subtitle during such 
year with the Trust Fund grant 
amounts of the grantee; and 
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‘‘(II) the manner in which the 
grantee complied during such fiscal 
year with the allocation plan estab-
lished pursuant to section 295 for the 
grantee. 
‘‘(ii) 
PUBLIC
AVAILABILITY.—The 
Secretary shall make such reports pursu-
ant to this subparagraph publicly available. 
‘‘(B) MISUSE OF FUNDS.—If the Secretary 
determines, after reasonable notice and oppor-
tunity for hearing, that a grantee has failed to 
comply substantially with any provision of this 
subtitle and until the Secretary is satisfied that 
there is no longer any such failure to comply, 
the Secretary shall— 
‘‘(i) reduce the amount of assistance 
under this section to the grantee by an 
amount equal to the amount of Trust 
Fund grant amounts which were not used 
in accordance with this subtitle; 
‘‘(ii) require the grantee to repay the 
Secretary an amount equal to the amount 
of the Trust Fund grant amounts which 
were not used in accordance with this sub-
title; 
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‘‘(iii) limit the availability of assist-
ance under this subtitle to the grantee to 
activities or recipients not affected by such 
failure to comply; or 
‘‘(iv) terminate any assistance under 
this subtitle to the grantee. 
‘‘SEC. 299. DEFINITIONS. 
‘‘For purposes of this subtitle, the following defini-
tions shall apply: 
‘‘(1) ELIGIBLE ACTIVITIES.—The term ‘eligible 
activities’ means activities relating to the construc-
tion, preservation, or rehabilitation of affordable 
rental housing or affordable one- to four-family 
owner-occupied housing, including— 
‘‘(A) the construction of new housing; 
‘‘(B) the acquisition of real property; 
‘‘(C) site preparation and improvement, in-
cluding demolition; 
‘‘(D) rehabilitation of existing housing; 
‘‘(E) use of funds to facilitate affordability 
for homeless and other extremely low-income 
households of dwelling units assisted with Trust 
Fund grant amounts, in a combined amount 
not to exceed 20 percent of the project grant 
amount, for— 
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‘‘(i) project-based rental assistance for 
not more than 12 months for a project as-
sisted with Trust Fund grant amounts; 
‘‘(ii) project operating reserves for use 
to cover the loss of rental assistance or in 
conjunction with a project loan; or 
‘‘(iii) project operating accounts used 
to cover net operating income shortfalls for 
dwelling units assisted with Trust Fund 
grant amounts; and 
‘‘(F) providing incentives to maintain ex-
isting housing (including manufactured hous-
ing) as affordable housing and to establish or 
extend any low-income affordability restrictions 
for such housing, including covering capital ex-
penditures and costs of establishing community 
land trusts to provide sites for manufactured 
housing provided such incentives; 
‘‘(2) ELIGIBLE RECIPIENT.—The term ‘eligible 
recipient’ means an entity that meets the require-
ments under section 296(b) for receipt of Trust 
Fund grant amounts of a grantee. 
‘‘(3) EXTREMELY
LOW
VACANCY
RATE.—The 
term ‘extremely low vacancy rate’ means a housing 
or rental vacancy rate of 2 percent or less. 
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‘‘(4) EXTREMELY
OLD
HOUSING.—The term 
‘extremely old housing’ means housing that is 45 
years old or older. 
‘‘(5) FAMILIES.—The term ‘families’ has the 
meaning given such term in section 3(b) of the 
United States Housing Act of 1937 (42 U.S.C. 
1437a(b)). 
‘‘(6) FISCAL
DISTRESS; SEVERE
FISCAL
DIS-
TRESS.—The terms ‘fiscal distress’ and ‘severe fiscal 
distress’ have the meanings given such terms in sec-
tion 220(d). 
‘‘(7) GRANTEE.—The term ‘grantee’ means— 
‘‘(A) a State, insular area, or participating 
local jurisdiction for which a grant is made 
under section 294(e); 
‘‘(B) an Indian tribe for which a grant is 
made under section 294(g); or 
‘‘(C) a nonprofit or public entity for which 
a grant is made under section 294(i). 
‘‘(8) INDIAN TRIBE.—The term ‘Indian tribe’ 
means a federally recognized Indian tribe. 
‘‘(9) INSULAR AREA.—The term ‘insular area’ 
has the meaning given such term in section 104. 
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‘‘(10) PARTICIPATING LOCAL JURISDICTION.— 
The term ‘participating local jurisdiction’ means, 
with respect to a fiscal year— 
‘‘(A) any unit of general local government 
(as such term is defined in section 104 (42 
U.S.C. 12704) that qualifies as a participating 
jurisdiction under section 216 (42 U.S.C. 
12746) for such fiscal year; and 
‘‘(B) at the option of such a consortium, 
any consortium of units of general local govern-
ments that is designated pursuant to section 
216 (42 U.S.C. 12746) as a participating juris-
diction for purposes of title II. 
‘‘(11) POVERTY LINE.—The term ‘poverty line’ 
has the meaning given such term in section 673(2) 
of the Omnibus Budget Reconciliation Act of 1981, 
including any revision required by such section. 
‘‘(12) RECIPIENT.—The term ‘recipient’ means 
an entity that receives assistance from a grantee, 
pursuant to section 296(a), from Trust Fund 
amounts of the grantee. 
‘‘(13) RURAL AREA.—The term ‘rural area’ has 
the meaning given such term in section 520 of the 
Housing Act of 1949 (42 U.S.C. 1490). 
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‘‘(14) 
SECRETARY.—The 
term 
‘Secretary’ 
means the Secretary of Housing and Urban Develop-
ment. 
‘‘(15) STATE.—The term ‘State’ has the mean-
ing given such term in section 104. 
‘‘(16) TRUST FUND.—The term ‘Trust Fund’ 
means the National Affordable Housing Trust Fund 
established under section 292. 
‘‘(17) TRUST
FUND
GRANT
AMOUNTS.—The 
term ‘Trust Fund grant amounts’ means amounts 
from the Trust Fund that are provided to a grantee 
pursuant to subsection (e), (g), or (i) of section 294. 
‘‘SEC. 300. INAPPLICABILITY OF HOME PROVISIONS. 
‘‘Except as specifically provided otherwise in this sub-
title, no requirement under, or provision of, title I or sub-
titles A through F of this title shall apply to assistance 
provided under this subtitle. 
‘‘SEC. 301. REGULATIONS. 
‘‘Not later than 6 months after the date of enactment 
of the National Affordable Housing Trust Fund Act of 
2007, the Secretary of Housing and Urban Development 
shall promulgate regulations to carry out this subtitle, 
which shall include regulations establishing the affordable 
housing needs formula in accordance with section 
294(a).’’. 
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