I 
110TH CONGRESS 
1ST SESSION H. R. 2895 
To establish the National Affordable Housing Trust Fund in the Treasury 
of the United States to provide for the construction, rehabilitation, and 
preservation of decent, safe, and affordable housing for low-income fami-
lies. 
IN THE HOUSE OF REPRESENTATIVES 
JUNE 28, 2007 
Mr. FRANK of Massachusetts (for himself, Ms. WATERS, Mr. GARY G. MIL-
LER of California, Mr. RAMSTAD, Ms. VELA´ZQUEZ, Mr. MCHUGH, Mr. 
ENGLISH of Pennsylvania, Mr. AL GREEN of Texas, Mr. SHAYS, Mr. 
MURPHY of Connecticut, Mr. DENT, Ms. LEE, Mr. RENZI, Mr. CLAY, Mr. 
SMITH of New Jersey, Mr. LYNCH, and Mr. HINOJOSA) 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 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’’. 
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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; 
‘‘(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. 
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‘‘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. 
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‘‘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 
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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. 
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‘‘(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) 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), 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 
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‘‘(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. 
‘‘(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 
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amount determined for such State, for Indian tribes, 
or for such insular area by applying the formula 
under subsection (a) of this section to the total 
amount allocated under section 293(b)(1) for all 
States, Indian tribes, and insular areas for the fiscal 
year. 
‘‘(3) PARTICIPATING LOCAL JURISDICTIONS.— 
The formula amount for each participating local ju-
risdiction shall be the amount determined for such 
participating local jurisdiction by applying the for-
mula under subsection (a) of this section to the total 
amount allocated under section 293(b)(2) for all 
participating local jurisdictions for the fiscal year. 
‘‘(4) NOTICE.—For each fiscal year referred to 
in section 293(a), not later than 60 days after the 
date that the Secretary determines the total amount 
available from the Trust Fund for such fiscal year 
pursuant to section 292(c) for assistance under this 
subtitle, the Director shall cause to be published in 
the Federal Register a notice that such amounts 
shall be so available. 
‘‘(c) ALLOCATION BASED ON AFFORDABLE HOUSING 
NEEDS FORMULA.—The allocation under this subsection 
for a State, for Indian tribes, for an insular area, or for 
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a local participating jurisdiction for a fiscal year shall be 
determined as follows: 
‘‘(1) STATES.—Subject to subsection (d), the 
allocation for a State shall be as follows: 
‘‘(A) MINIMUM AMOUNT.—If the formula 
amount determined under subsection (b)(2) for 
the State for the fiscal year is less than 1 per-
cent of the total amount allocated for such fis-
cal year under section 293(b)(1), the allocation 
for the State shall be 1 percent of the total 
amount allocated for such fiscal year under sec-
tion 293(b)(1). 
‘‘(B) FORMULA AMOUNT.—If the formula 
amount determined under subsection (b)(2) for 
the State for the fiscal year is 1 percent or 
more of the total amount allocated for such fis-
cal year under section 293(b)(1), the allocation 
for the State shall be the formula amount for 
the State, except that the Secretary shall re-
duce such formula amounts for all States whose 
allocations are determined under this subpara-
graph on a pro rata basis by the amount nec-
essary to account for any increases from the 
formula amount for allocations made under 
subparagraph (A) so that the total of the allo-
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cations for all States pursuant to this para-
graph is equal to the aggregate of the formula 
amounts under subsection (b)(2) for all States. 
‘‘(2) INDIAN TRIBES AND INSULAR AREAS.— 
The allocation for Indian tribes and for each insular 
area shall be the formula amount for Indian tribes 
or for the insular area, respectively, determined 
under subsection (b), as applicable. 
‘‘(3) PARTICIPATING LOCAL JURISDICTIONS.— 
Subject to subsection (d), the allocation for each 
participating local jurisdiction shall be the formula 
amount for the jurisdiction determined under sub-
section (b). 
‘‘(d) ALLOCATION EXCEPTION FOR YEARS IN WHICH 
LESS THAN $2 BILLION IS AVAILABLE.—If, for any fiscal 
year, the total amount available pursuant to section 
293(a) for assistance under this subtitle is less than 
$2,000,000,000— 
‘‘(1) for each participating local jurisdiction 
having a formula amount of less than $1,000,000, 
the allocation shall be $0; and 
‘‘(2) the allocation for the State in which such 
participating local jurisdiction is located shall be in-
creased by the amount of the formula amount for 
the participating local jurisdiction. 
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Any adjustments pursuant to paragraphs (1) and (2) shall 
be made notwithstanding the allocation percentages under 
section 293(b). 
‘‘(e) GRANT AWARDS.—For each fiscal year referred 
to in section 293(a), using the amounts made available 
to the Secretary from the Trust Fund for such fiscal year 
under section 292(c), the Secretary shall, subject to sub-
section (f), make a grant to each State, insular area, and 
participating local jurisdiction in the amount of the alloca-
tion under subsection (a)(2), (c), or (d), as applicable, for 
the State, area, or jurisdiction, respectively. 
‘‘(f) MATCHING REQUIREMENT.— 
‘‘(1) IN GENERAL.—Each grantee for a fiscal 
year shall contribute to eligible activities funded with 
Trust Fund grant amounts, or require the contribu-
tion to such eligible activities by recipients of such 
Trust Fund grant amounts of, in addition to any 
such grant amounts, not less than the following 
amount: 
‘‘(A) STATE, LOCAL, OR
PRIVATE
RE-
SOURCES.—To the extent that such contributed 
amounts are derived from State, local, or pri-
vate resources, one dollar for every two dollars 
of such grant amounts. 
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‘‘(B) FEDERAL AMOUNTS.—To the extent 
that such contributed amounts are derived from 
State- or locally-controlled amounts from Fed-
eral assistance, or from amounts made available 
under the affordable housing program of a Fed-
eral Home Loan Bank pursuant to section 10(j) 
of the Federal Home Loan Bank Act (12 
U.S.C. 1430(j)), one dollar for every dollar of 
such grant amounts. 
Nothing in this paragraph may be construed to pre-
vent a grantee or recipient from complying with this 
paragraph only by contributions in accordance with 
subparagraph (A), only by contributions in accord-
ance with subparagraph (B), or by a combination of 
such contributions. 
‘‘(2) REDUCTION OR WAIVER FOR RECIPIENTS 
IN FISCAL DISTRESS.—The Secretary may reduce or 
waive the requirement under paragraph (1) with re-
spect to any grantee that the Secretary determines, 
pursuant to such demonstration by the recipient as 
the Secretary shall require, is in fiscal distress. The 
Secretary shall make determinations regarding fiscal 
distress for purposes of this paragraph in the same 
manner, and according to the same criteria, as fiscal 
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distress is determined with respect to jurisdictions 
under section 220(d) (42 U.S.C. 12750(d)). 
‘‘(3) QUALIFICATION
OF
SERVICES
FUNDING 
FOR MATCH.—For purposes of meeting the require-
ments of paragraph (1), amounts that a grantee, re-
cipient, or other governmental or private agency or 
entity commits to contribute to provide services to 
residents of affordable housing provided using grant 
amounts under this subtitle, by entering into a bind-
ing commitment for such contribution as the Sec-
retary shall require, shall be considered contribu-
tions to eligible activities. 
‘‘(4) REDUCTION OR WAIVER FOR CERTAIN AC-
TIVITIES.—With respect to Trust Fund grant 
amounts made available for a fiscal year, the Sec-
retary shall reduce or waive the amount of contribu-
tions otherwise required under paragraph (1) to be 
made with respect to eligible activities to be carried 
out with such grant amounts and for which any vari-
ance from zoning laws or other waiver of regulatory 
requirements was approved by the local jurisdiction. 
Such reduction may be implemented in the year fol-
lowing the year in which such activities are funded 
with Trust Fund grant amounts. 
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‘‘(g) COMPETITIVE GRANTS FOR INDIAN TRIBES.— 
For each fiscal year referred to in section 293(a), the Sec-
retary shall, using amounts allocated for Indian tribes 
pursuant to subsection (a)(2)(B) or (c)(2), as applicable, 
and subject to subsection (f), make grants to Indian tribes 
on a competitive basis, based upon such criteria as the 
Secretary shall establish, which shall include the factors 
specified in section 295(c)(2)(B). 
‘‘(h) USE BY STATE OF UNUSED FUNDS OF LOCAL 
JURISDICTIONS.—If any participating local jurisdiction 
for which an allocation is made for a fiscal year pursuant 
to this section notifies the Secretary of an intent not to 
use all or part of such funds, any such funds that will 
not be used by the jurisdiction shall be added to the grant 
award under subsection (e) for the State in which such 
jurisdiction is located. 
‘‘(i) COMPETITIVE GRANTS FOR AREAS WITHOUT 
ALLOCATION PLANS AND RECIPIENTS WITH INSUFFI-
CIENT MATCHING CONTRIBUTIONS.— 
‘‘(1) AVAILABLE AMOUNTS.—For a fiscal year, 
the following amounts shall be available for grants 
under this subsection: 
‘‘(A) ALLOCATION FOR AREAS NOT SUB-
MITTING ALLOCATION PLANS.—With respect to 
each State, insular area, or participating local 
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jurisdiction that has not, before the expiration 
of the 12-month period beginning upon the date 
of the publication of the notice of funding avail-
ability for such fiscal year under subsection 
(b)(4), submitted to and had approved by the 
Secretary an allocation plan for such fiscal year 
meeting the requirements of section 295, the 
amount of the allocation for such State, insular 
area, or participating local jurisdiction for such 
fiscal year determined under this section. 
‘‘(B) UNMATCHED
PORTION
OF
ALLOCA-
TION.—With respect to any grantee for which 
the Trust Fund grant amount awarded for such 
fiscal year is reduced from the amount of the 
allocation determined under this section for the 
grantee by reason of failure comply with the re-
quirements under subsection (f), the amount by 
which such allocation for the grantee for the 
fiscal year exceeds the Trust Fund grant 
amount for the grantee for the fiscal year. 
‘‘(C) 
UNCOMMITTED
AMOUNTS.—Any 
Trust Fund grant amounts for a fiscal year 
that are not committed for use for eligible ac-
tivities before the expiration of the 24-month 
period beginning upon the date of the publica-
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tion of the notice of availability of amounts 
under subsection (b)(4) for such fiscal year. 
‘‘(D) 
UNUSED
AMOUNTS.—Any 
Trust 
Fund grant amounts for which the grantee no-
tifies the Secretary that such funds will not be 
used under this subtitle. 
‘‘(2) NOTICE.—For each fiscal year, not later 
than 60 days after the date that the Secretary deter-
mines that the amounts described in paragraph (1) 
shall be available for grants under this subsection, 
the Secretary shall cause to be published in the Fed-
eral Register a notice that such amounts shall be so 
available. 
‘‘(3) APPLICATIONS.—The Secretary shall pro-
vide for nonprofit and public entities (and consortia 
thereof, which may include regional consortia of 
units of local government) to submit applications, 
during the 9-month period beginning upon publica-
tion of a notice of funding availability under para-
graph (2) for a fiscal year, for a grant of all or a 
portion of the amounts referred to in paragraph (1) 
for such fiscal year. Such an application shall in-
clude a certification that the applicant will comply 
with all requirements of this subtitle applicable to a 
grantee under this subsection. 
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‘‘(4) SELECTION
CRITERIA.—The Secretary 
shall, by regulation, establish criteria for selecting 
applicants that meet the requirements of paragraph 
(3) for funding under this subsection. Such criteria 
shall give priority to applications that provide that 
grant amounts under this subsection will be used for 
eligible activities relating to affordable housing that 
is located in the State or insular area, as applicable, 
for which such grant funds were originally allocated 
under this section. 
‘‘(5) AWARD
AND
USE
OF
GRANT
ASSIST-
ANCE.— 
‘‘(A) AWARD.—Subject only to the absence 
of applications meeting the requirements of 
paragraph (3), upon the expiration of the pe-
riod referred to in such paragraph, the Sec-
retary shall select an applicant or applicants 
under this subsection to receive the amounts 
available under paragraph (1) and shall make a 
grant or grants to such applicant or applicants. 
The selection shall be based upon the criteria 
established under paragraph (4). 
‘‘(B) USE.—Amounts from a grant under 
this subsection shall be Trust Fund grant 
amounts for purposes of this subtitle. 
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‘‘SEC. 295. ALLOCATION PLANS. 
‘‘(a) IN GENERAL.—Each grantee that is a State, in-
sular area, participating local jurisdiction, or grantee 
under section 294(i) for a fiscal year, shall establish an 
allocation plan in accordance with this section for the dis-
tribution of Trust Fund grant amounts provided to the 
grantee for such fiscal year, which shall be a plan that— 
‘‘(1) provides for use of such amounts in ac-
cordance with section 296; 
‘‘(2) is based on priority housing needs, as de-
termined by the grantee; and 
‘‘(3) is consistent with the comprehensive hous-
ing affordability strategy under section 105 (42 
U.S.C. 12705) or any applicable consolidated sub-
mission used for purposes of applying for other com-
munity planning and development and housing as-
sistance programs administered by the Secretary, for 
the applicable State, insular area, jurisdiction, or 
grantee under section 294(i). 
‘‘(b) ESTABLISHMENT.—In establishing an allocation 
plan, a grantee described in subsection (a) shall notify the 
public of the establishment of the plan, provide an oppor-
tunity for public comments regarding the plan, consider 
any public comments received, and make the completed 
plan available to the public. 
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‘‘(c) CONTENTS.—Each allocation plan of a grantee 
described in subsection (a) shall comply with the following 
requirements: 
‘‘(1) APPLICATION REQUIREMENTS FOR ELIGI-
BLE
RECIPIENTS.—The allocation plan shall set 
forth the requirements for eligible recipients to apply 
to the grantee to receive assistance from Trust Fund 
grant amounts of the grantee for use for eligible ac-
tivities, including a requirement that each such ap-
plication include— 
‘‘(A) a description of the eligible activities 
to be conducted using such assistance; and 
‘‘(B) a certification by the eligible recipient 
applying for such assistance that any housing 
assisted with such grant amounts will comply 
with— 
‘‘(i) all of the requirements under this 
subtitle, including the targeting require-
ments under section 296(c) and the afford-
able housing requirements under section 
297; 
‘‘(ii) section 808(d) of the Fair Hous-
ing Act (relating to the obligation to af-
firmatively further fair housing); and 
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‘‘(iii) section 504 of the Rehabilitation 
Act of 1973 (relating to prohibition of dis-
crimination on the basis of disability). 
‘‘(2) SELECTION PROCESS AND CRITERIA FOR 
ASSISTANCE.— 
‘‘(A) SELECTION PROCESS.—The allocation 
plan shall set forth a process for the grantee to 
select eligible activities meeting the grantee’s 
priority housing needs for funding with Trust 
Fund grant amounts of the grantee, which shall 
comply with requirements for such process as 
the Secretary shall, by regulation, establish. 
‘‘(B) SELECTION
CRITERIA.—The alloca-
tion plan shall set forth the factors for consid-
eration in selecting among applicants that meet 
the application requirements established pursu-
ant to paragraph (1), which shall provide for 
geographic diversity among eligible activities to 
be assisted with Trust Fund grant amounts of 
the grantee and shall include— 
‘‘(i) the merits of the proposed eligible 
activity of the applicant, including the ex-
tent to which the activity addresses hous-
ing needs identified in the allocation plan 
of the grantee and the applicable com-
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prehensive housing affordability strategy or 
consolidated submission referred to in sub-
section (a)(3); 
‘‘(ii) the ability of the applicant to ob-
ligate grant amounts for the proposed eli-
gible activities and to undertake such ac-
tivities in a timely manner; 
‘‘(iii) the amount of assistance lever-
aged by the applicant from private and 
other non-Federal sources for carrying out 
the eligible activities to be funded with 
Trust Fund grant amounts, including as-
sistance made available under section 8 of 
the United States Housing Act of 1937 
(42 U.S.C. 1437f) that is devoted to the 
project that contains the affordable hous-
ing to be assisted with such assistance; 
‘‘(iv) the extent of local assistance 
that will be provided in carrying out the el-
igible activities, including financial assist-
ance; 
‘‘(v) the degree to which the project in 
which the affordable housing will be lo-
cated will have residents of various in-
comes; 
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‘‘(vi) the extent of employment and 
other economic opportunities for low-in-
come families in the area in which the 
housing will be located; 
‘‘(vii) the extent to which the appli-
cant demonstrates the ability to maintain 
dwelling 
units 
as 
affordable 
housing 
through the use of assistance made avail-
able under this subtitle, assistance lever-
aged from non-Federal sources, assistance 
made available under section 8 of the 
United States Housing Act of 1937 (42 
U.S.C. 1437f), State or local assistance, 
programs to increase tenant income, cross- 
subsidization, and any other resources; 
‘‘(viii) the extent to which the appli-
cant demonstrates that the county in 
which the housing is to be located is expe-
riencing an extremely low vacancy rate; 
‘‘(ix) the extent to which the percent-
age of the housing located in such county 
that is extremely old housing exceeds 35 
percent; 
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‘‘(x) the extent to which the housing 
assisted with the grant amounts will be ac-
cessible to persons with disabilities; 
‘‘(xi) the extent to which the applicant 
demonstrates that the affordable housing 
assisted with the grant amounts will be lo-
cated in proximity to public transportation, 
job opportunities, child care, and commu-
nity revitalization projects; 
‘‘(xii) the extent to which the appli-
cant has provided that assistance from 
grant amounts will be used for eligible ac-
tivities relating to housing located in cen-
sus tracts in which the number of families 
having incomes less than the poverty line is 
less than 20 percent; and 
‘‘(xiii) the extent to which the housing 
assisted with grant amounts will comply 
with energy efficiency standards and the 
national 
Green 
Communities 
criteria 
checklist for residential construction that 
provides criteria for the design, develop-
ment, and operation of affordable housing, 
as the Secretary shall by regulation pro-
vide. 
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‘‘(3) PERFORMANCE GOALS, BENCHMARKS, AND 
TIMETABLES.—The allocation plan shall include per-
formance goals, benchmarks, and timetables for the 
grantee for the conducting of eligible activities with 
Trust Fund grant amounts that comply with re-
quirements and standards for such goals, bench-
marks, and timetables as the Secretary shall, by reg-
ulation, establish. 
‘‘(d) REVIEW AND APPROVAL BY SECRETARY.— 
‘‘(1) SUBMISSION.—A grantee described in sub-
section (a) shall submit an allocation plan for the 
fiscal year for which the grant is made to the Sec-
retary not later than the expiration of the 6-month 
period beginning upon the notice of funding avail-
ability under section 294(b)(4) for such fiscal year 
amounts. 
‘‘(2) 
REVIEW
AND
APPROVAL
OR
DIS-
APPROVAL.—The Secretary shall review and approve 
or disapprove an allocation plan not later than the 
expiration of the 3-month period beginning upon 
submission of the plan. 
‘‘(3) STANDARD FOR DISAPPROVAL.—The Sec-
retary may disapprove an allocation plan only if the 
plan fails to comply with requirements of this sec-
tion or section 296. 
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‘‘(4) RESUBMISSION
UPON
DISAPPROVAL.—If 
the Secretary disapproves a plan, the grantee may 
submit to the Secretary a revised plan for review 
and approval or disapproval under this subsection. 
‘‘(5) TIMING FOR FISCAL YEAR 2008.—With re-
spect only to fiscal year 2008, the Secretary may ex-
tend each of the periods referred to in paragraphs 
(1) and (2), and the period referred to in section 
294(i)(1)(A), by not more than 6 months. 
‘‘SEC. 296. USE OF ASSISTANCE BY RECIPIENTS. 
‘‘(a) DISTRIBUTION TO RECIPIENTS; USE REQUIRE-
MENTS.—Each grantee shall distribute Trust Fund grant 
amounts of the grantee to eligible recipients for use in ac-
cordance with this section. Trust Fund grant amounts of 
a grantee may be used, or committed for use, only for eli-
gible activities that— 
‘‘(1) are conducted in the jurisdiction of the 
grantee; 
‘‘(2) in the case of a grantee that is a State, 
insular area, participating local jurisdiction, or 
grantee under section 294(i), comply with the alloca-
tion plan of the grantee under section 295; 
‘‘(3) are selected for funding by the grantee in 
accordance with the process and criteria for such se-
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