I
107TH CONGRESS
1ST SESSION
H. R. 2349
To establish the National Affordable Housing Trust Fund in the Treasury
of the United States to provide for the development, rehabilitation, and
preservation of decent, safe, and affordable housing for low-income fami-
lies.
IN THE HOUSE OF REPRESENTATIVES
JUNE 27, 2001
Mr. SANDERS (for himself, Ms. LEE, Mr. MCHUGH, Mr. RUSH, Mrs. CLAY-
TON, Ms. MCKINNEY, Mr. ISRAEL, Mr. FILNER, Mrs. MEEK of Florida,
Mr. KENNEDY of Rhode Island, Ms. SCHAKOWSKY, Mr. THOMPSON of
Mississippi, Mr. ENGEL, Mr. COYNE, Mr. CONYERS, Mr. OWENS, Mr.
SCHIFF, Mr. CAPUANO, Mr. FROST, Mr. STARK, Ms. CARSON of Indiana,
Mr. DELAHUNT, Mr. KUCINICH, Mr. CUMMINGS, Mr. CLAY, Ms.
VELA´ZQUEZ, Ms. RIVERS, Ms. PELOSI, Mr. BLUMENAUER, Mr.
MCDERMOTT, Mr. BALDACCI, Ms. MCCOLLUM, Mr. LARSEN of Wash-
ington, Ms. MCCARTHY of Missouri, Mr. FRANK, Mrs. JONES of Ohio,
Mr. HASTINGS of Florida, Ms. WATERS, Ms. EDDIE BERNICE JOHNSON
of Texas, Mr. BRADY of Pennsylvania, Ms. JACKSON-LEE of Texas, Mr.
ALLEN, Mr. GUTIERREZ, Mr. DAVIS of Illinois, Mr. PAYNE, Mr. FARR
of California, and Mr. NADLER) introduced the following bill; which was
referred to the Committee on Financial Services
A BILL
To establish the National Affordable Housing Trust Fund
in the Treasury of the United States to provide for
the development, 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 2001’’.
SEC. 2. PURPOSES.
The purposes of this Act are—
(1) to fill the growing gap in the national abil-
ity to build affordable housing by using profits gen-
erated by Federal housing programs to fund addi-
tional housing activities, without supplanting exist-
ing housing appropriations;
(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 homeownership for low-income
families; and
(4) to produce, rehabilitate, and preserve at
least 1,500,000 affordable dwelling units by 2010.
SEC. 3. NATIONAL HOUSING TRUST FUND.
(a) ESTABLISHMENT OF TRUST FUND.—There is es-
tablished in the Treasury of the United States a trust fund
to be known as the National Affordable Housing Trust
Fund, which shall be available as provided in this Act for
assisting the development, rehabilitation, and preservation
of affordable housing.
(b) DEPOSITS TO TRUST FUND.—For fiscal year
2002 and each fiscal year thereafter, there shall be appro-
priated to the Trust Fund an amount equal to the sum
of—
(1) any revenue generated in the previous fiscal
year by the Mutual Mortgage Insurance Fund estab-
lished under section 202(a) of the National Housing
Act (12 U.S.C. 1708(a)) that exceeds the amount
necessary for such Fund to maintain the capital
ratio required under section 205(f) of such Act (12
U.S.C. 1711(f)) at the conclusion of such preceding
fiscal year; and
(2) any revenue generated in the preceding fis-
cal year by the Government National Mortgage As-
sociation in excess of the amount necessary to pay
the administrative costs and expenses necessary to
ensure the safety and soundness of the Government
National Mortgage Association, as determined by
the Secretary.
(c) EXPENDITURES FROM TRUST FUND.—For fiscal
year 2002 and each fiscal year thereafter, amounts appro-
priated to the Trust Fund for each such fiscal year shall
be available to the Secretary of Housing and Urban Devel-
opment for providing assistance under this Act in accord-
ance with section 4.
SEC. 4. ASSISTANCE FROM TRUST FUND.
(a) USE OF TRUST FUND AMOUNTS FOR ASSIST-
ANCE.—The Secretary shall use the total amount made
available under section 3(c) to the Secretary from the
Trust Fund for such fiscal year to provide assistance
under this Act for the States.
(b) AFFORDABLE HOUSING NEEDS FORMULA.—The
Secretary shall establish a formula to allocate assistance
under this Act among the States based on the relative
need of each State for additional affordable housing. The
formula shall be based upon a comparison of the following
factors for each State:
(1) The percentage of families in the State that
live in substandard housing.
(2) The percentage of families in the State that
pay more than 50 percent of their annual income for
housing costs.
(3) The percentage of persons in the State hav-
ing an income at or below the poverty line.
(4) The cost of developing or carrying out sub-
stantial rehabilitation of housing in the State.
(5) The percentage of the population of the
State that resides in counties having extremely low
vacancy rates.
(6) The percentage of housing stock in the
State that is extremely old housing.
(7) Any other factors that the Secretary deter-
mines to be appropriate.
(c) FORMULA AMOUNT.—For fiscal year 2002 and
each fiscal year thereafter, the Secretary shall determine
the formula amount under this subsection for each State,
which shall be the amount determined for each such State
by applying the formula under subsection (b) to the total
amount made available under section 3(c) to the Secretary
for the fiscal year.
(d) ALLOCATION AMOUNT FOR STATES.—The alloca-
tion under this subsection for a State for a fiscal year shall
be determined as follows:
(1) MINIMUM AMOUNT.—If the formula amount
determined under subsection (c) for the State for
the fiscal year is less than 1 percent of the total
amount made available under section 3(c) for such
fiscal year, the allocation for the State shall be 1
percent of such amount.
(2) FORMULA AMOUNT.—If the formula amount
determined under subsection (c) for the State for
the fiscal year is 1 percent or more of the total
amount made available under section 3(c) for such
fiscal year, the allocation for the State shall be the
formula amount for the State, except that the Sec-
retary shall reduce such formula amounts for all
States whose allocations are determined under this
paragraph on a pro rata basis by the amount nec-
essary to account for any increases from the formula
amount for allocations made under paragraph (1) of
this subsection.
(e) GRANT AWARDS.—For fiscal year 2002 and each
fiscal year thereafter, using the amounts made available
to the Secretary from the Trust Fund for such fiscal year
under section 3(c), the Secretary shall make a grant to
each eligible State (as determined under section 5(d)) in
the lesser of the following amounts:
(1) FULL ALLOCATION.—The amount of the al-
location under subsection (d) for the eligible State.
(2) 4 TIMES MATCHING CONTRIBUTION.—The
amount that is equal to 4 times the amount of funds
provided by the eligible State from non-Federal
sources for use only as provided in subsection (f)(2).
(f) MATCHING CONTRIBUTION.—
(1) ELIGIBLE AMOUNTS.—For purposes of sub-
section (e)(2), only the following amounts shall be
considered amounts from non-Federal sources:
(A) LOW-INCOME
HOUSING
TAX
CRED-
ITS.—50 percent of funds allocable to tax cred-
its allocated under section 42 of the Internal
Revenue Code of 1986.
(B) MORTGAGE BOND REVENUE.—50 per-
cent of revenue from mortgage revenue bonds
issued under section 143 of such Code.
(C) TAX EXEMPT BONDS PROCEEDS.—50
percent of proceeds from the sale of tax exempt
bonds.
(D) GENERAL
STATE
REVENUE.—Any
other State revenue that is not derived from
Federal sources, including any State tax rev-
enue.
(2) USE
OF
MATCHING
AMOUNTS.—Use of
amounts as provided in this paragraph shall be used
only for—
(A) eligible activities relating to affordable
housing; or
(B) eligible activities relating to a project
not less than 50 percent of the dwelling units
of which qualify as affordable housing.