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fund in accordance with this section. The purpose of the 
affordable housing fund shall be— 
‘‘(1) to increase homeownership for extremely 
low-and very low-income families; 
‘‘(2) to increase investment in housing in low- 
income areas, and areas designated as qualified cen-
sus tracts or an area of chronic economic distress 
pursuant to section 143(j) of the Internal Revenue 
Code of 1986 (26 U.S.C. 143(j)); 
‘‘(3) to increase and preserve the supply of 
rental and owner-occupied housing for extremely 
low- and very low-income families; 
‘‘(4) to increase investment in public infrastruc-
ture development in connection with housing assisted 
under this section; and 
‘‘(5) to leverage investments from other sources 
in affordable housing and in public infrastructure 
development in connection with housing assisted 
under this section. 
‘‘(b) ALLOCATION OF AMOUNTS BY ENTERPRISES.— 
‘‘(1) IN GENERAL.—In accordance with regula-
tions issued by the Director under subsection (k) 
and subject to paragraphs (2) and (3) of this sub-
section and subsection (f)(5), each enterprise shall
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allocate to the affordable housing fund established 
under subsection (a) by the enterprise— 
‘‘(A) in the year in which the effective date 
under section 185 of the Federal Housing Fi-
nance Reform Act of 2005 occurs, 3.5 percent 
of the after-tax income of the enterprise for the 
preceding year; 
‘‘(B) in the year after the year referred to 
in subparagraph (A), 3.5 percent of the after- 
tax income of the enterprise for the preceding 
year; and 
‘‘(C) in each of the first three years after 
the year referred to in subparagraph (B), 5 per-
cent of the after-tax income of the enterprise 
for the preceding year. 
‘‘(2) LIMITATION.—An enterprise shall not be 
required to make an allocation for a year to the af-
fordable housing fund of the enterprise established 
under subsection (a) unless the enterprise generated 
after-tax income for the preceding year. 
‘‘(3) SUSPENSION
OF
CONTRIBUTIONS.—The 
Director shall temporarily suspend the allocation 
under paragraph (1) by an enterprise to the afford-
able housing fund of the enterprise upon a finding 
by the Director that such allocations—
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‘‘(A) are contributing, or would contribute, 
to the financial instability of the enterprise; 
‘‘(B) are causing, or would cause, the en-
terprise to be classified as undercapitalized; or 
‘‘(C) are preventing, or would prevent, the 
enterprise from successfully completing a cap-
ital restoration plan under section 1369C. 
‘‘(4) 5-YEAR SUNSET AND REPORT.— 
‘‘(A) SUNSET.—The enterprises shall not 
be required to make allocations to the afford-
able housing funds in the 5th year after the 
year in which the effective date under section 
185 of the Federal Housing Finance Reform 
Act of 2005 occurs or in any year thereafter. 
‘‘(B) REPORT
ON
PROGRAM
CONTINU-
ANCE.—Not later 6 months before the end of 
the last year in which the allocations are re-
quired under paragraph (1), the Director shall 
submit to the Committee on Financial Services 
of the House of Representatives and the Com-
mittee on Banking, Housing, and Urban Affairs 
of the Senate a report making recommendations 
on whether the program under this section, in-
cluding the requirement for the enterprises to 
make allocations to the affordable housing
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funds, should be extended and on any modifica-
tions for the program. 
‘‘(5) 
DETERMINATION
OF
AFTER-TAX
IN-
COME.—For purposes of this section, the term 
‘after-tax income’ means, with respect to an enter-
prise for a year, the amount reported by the enter-
prise for such year in the enterprise’s annual report 
for such year that is filed with the Securities and 
Exchange Commission, except that for any year in 
which no such filing is made by an enterprise or 
such filing is not timely made, such term means the 
amount determined by the Director based on the in-
come tax return filings of the enterprise. 
‘‘(c) SELECTION OF ACTIVITIES FUNDED USING AF-
FORDABLE HOUSING FUND AMOUNTS.—Amounts from 
the affordable housing fund of the enterprise may be used, 
or committed for use, only for activities that— 
‘‘(1) are eligible under subsection (d) for such 
use; and 
‘‘(2) are selected for funding by the enterprise 
in accordance with the process and criteria for such 
selection 
established 
pursuant 
to 
subsection 
(k)(2)(C).
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‘‘(d) ELIGIBLE ACTIVITIES.—Amounts from the af-
fordable housing fund of an enterprise shall be eligible for 
use, or for commitment for use, only for assistance for— 
‘‘(1) the production, preservation, and rehabili-
tation of rental housing, including housing under the 
programs identified in section 1335(a)(2)(B), except 
that amounts provided from the Fund may be used 
for the benefit only of extremely low- and very low- 
income families; 
‘‘(2) the production, preservation, and rehabili-
tation of housing for homeownership, including such 
forms as downpayment assistance, closing cost as-
sistance, and assistance for interest-rate buy-downs, 
that— 
‘‘(A) is available for purchase only for use 
as a principal residence by families that qualify 
both as— 
‘‘(i) extremely low- and very-low in-
come families at the times described in 
subparagraphs (A) through (C) of section 
215(b)(2) of the Cranston-Gonzalez Na-
tional Affordable Housing Act (42 U.S.C. 
12745(b)(2)); and 
‘‘(ii) first-time homebuyers, as such 
term is defined in section 104 of the Cran-
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ston-Gonzalez National Affordable Housing 
Act (42 U.S.C. 12704), except that any 
reference in such section to assistance 
under title II of such Act shall for pur-
poses of this section be considered to refer 
to assistance from the affordable housing 
fund of the enterprise; 
‘‘(B) has an initial purchase price that 
meets the requirements of section 215(b)(1) of 
the Cranston-Gonzalez National Affordable 
Housing Act; and 
‘‘(C) is subject to the same resale restric-
tions established under section 215(b)(3) of the 
Cranston-Gonzalez National Affordable Hous-
ing Act and applicable to the participating ju-
risdiction that is the State in which such hous-
ing is located; and 
‘‘(3) public infrastructure development activities 
in connection with housing activities funded under 
paragraph (1) or (2). 
‘‘(e) ELIGIBLE RECIPIENTS.— 
‘‘(1) IN GENERAL.—Amounts from the afford-
able housing fund of an enterprise may be provided 
only to a recipient that is an organization, agency, 
or other entity (including a for-profit entity, a non-
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profit entity, a federally recognized tribe, an Alaskan 
Native village, and a faith-based organization) 
that— 
‘‘(A) has a demonstrated capacity for car-
rying out activities of the type that are to be 
funded with such affordable housing fund 
amounts; and 
‘‘(B) makes such assurances to the enter-
prise as the Director shall, by regulation, re-
quire to ensure that the recipient will comply 
with the requirements of this section (including, 
in the case of any organization, agency, or enti-
ty subject to paragraph (2), all of the require-
ments specified under such paragraph) during 
the entire period that begins upon selection of 
the recipient to receive amounts from the af-
fordable housing fund of the enterprise and 
ending upon the conclusion of all activities 
under subsection (d) that are engaged in by the 
recipient and funded with such affordable hous-
ing fund amounts; and 
‘‘(C) in the case of any recipient who is not 
a for-profit entity or a government agency or 
authority, complies with all of the requirements 
under paragraph (2).
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HR 1461 RFS 
‘‘(2) ADDITIONAL REQUIREMENTS FOR RECIPI-
ENTS OTHER THAN FOR-PROFIT ENTITIES.—The re-
quirements under this paragraph with respect to any 
organization, agency, or entity that is not a for-prof-
it entity or a government agency or authority are 
that the organization, agency, or entity— 
‘‘(A) shall have as its primary purpose the 
provision of affordable housing, as defined by 
the Director; 
‘‘(B) shall make such assurances to the en-
terprise as the Director shall, by regulation, re-
quire to ensure that such affordable housing 
fund amounts— 
‘‘(i) are used only to supplement, and 
to the extent practical, to increase the level 
of funds that would, in the absence of 
amounts made available from the afford-
able housing fund, be made available from 
other sources for the recipient to carry out 
activities of the type that are eligible under 
subsection (d) for funding with affordable 
housing fund amounts; and 
‘‘(ii) are not in any case used so as to 
supplant any funds from other sources
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HR 1461 RFS 
that are made available for such activities 
of the recipient; and 
‘‘(C) does not, at the time during the pe-
riod that begins 12 months before submission 
of an application for funding from the afford-
able housing fund of the enterprise and ending 
upon the expiration of the period referred to in 
paragraph (1)(B)— 
‘‘(i) engage in any Federal election ac-
tivity, as such term is defined in paragraph 
(20) of section 301 of the Federal Election 
Campaign Act of 1971 (2 U.S.C. 431(20)), 
except that, notwithstanding the 120-day 
limitation in subparagraph (A)(i) of such 
paragraph, such term shall include voter 
registration activity during any period; 
‘‘(ii) make any expenditure for any 
electioneering communication (as such 
term is defined in section 304(f)(3) of the 
Federal Election Campaign Act of 1971 (2 
U.S.C. 434(f)(3)); 
‘‘(iii) make any lobbying expenditure, 
(as such term is defined in such section 
501(h)(2)), except that this clause shall 
not apply to any such expenditure by an
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organization described in section 501(c)(3) 
of the Internal Revenue Code of 1986 that 
is exempt from taxation under subsection 
(a) of such section 501, to the extent that 
such expenditure does not exceed the 
amount under such Code for which such 
exemption may be denied; or 
‘‘(iv) maintain any affiliation with any 
organization, agency, or other entity that 
does not comply with clauses (i), (ii), and 
(iii) of this subparagraph. 
‘‘(3) AFFILIATION.— 
‘‘(A) IN GENERAL.—A recipient organiza-
tion, agency, or entity shall be considered to be 
affiliated with another entity, for purposes of 
paragraph (2), if such recipient entity controls, 
is controlled by, or is under common control 
with such other entity. 
‘‘(B) CONTROL.—The existence of any of 
the following relationships between a recipient 
entity and another entity shall indicate that 
control exists for purposes of subparagraph (A): 
‘‘(i) OVERLAPPING
BOARD
MEMBER-
SHIP.—Individuals serve in a similar ca-
pacity as officers, executives, or staff of
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both the recipient entity and the other en-
tity. 
‘‘(ii) SHARED
RESOURCES.—The re-
cipient entity and the other entity share of-
fice space, staff members, supplies, re-
sources, or marketing materials, including 
Internet and other forms of public commu-
nication. 
‘‘(iii) FUNDING.—The recipient entity 
receives more than 20 percent of its total 
funding from such other entity or provides 
more than 20 percent of the total funding 
of such other entity. 
‘‘(iv) OTHER.—The recipient entity or 
such other entity exhibits any other indicia 
of substantial overlap or common control 
as may be set forth in regulation by the 
Director. 
‘‘(4) FOR PROFIT.—For purposes of this sub-
section, the term ‘for-profit entity’ means any entity 
any part of the net earnings of which inure to the 
benefit of any private shareholder, member, founder, 
contributor, or individual. 
‘‘(f) LIMITATIONS ON USE.—
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HR 1461 RFS 
‘‘(1) REQUIRED
AMOUNT
FOR
REFCORP.—Of 
any amounts allocated pursuant to subsection (b) in 
each year to the affordable housing fund of an enter-
prise, 25 percent shall be used as provided in section 
21B(f)(2)(E) of the Federal Home Loan Bank Act 
(12 U.S.C. 1441b(f)(2)(E)). 
‘‘(2) REQUIRED AMOUNT FOR HOMEOWNERSHIP 
ACTIVITIES.—Of any amounts allocated pursuant to 
subsection (b) in each year to the affordable housing 
fund of an enterprise, not less than 10 percent shall 
be used for activities under paragraph (2) of sub-
section (d). 
‘‘(3) MAXIMUM
AMOUNT
FOR
PUBLIC
INFRA-
STRUCTURE DEVELOPMENT ACTIVITIES IN CONNEC-
TION WITH AFFORDABLE HOUSING ACTIVITIES.—Of 
any amounts allocated pursuant to subsection (b) in 
each year to the affordable housing fund of an enter-
prise, not more than 12.5 percent may be used for 
activities under paragraph (3) of subsection (d). 
‘‘(4) DEADLINE FOR COMMITMENT OR USE.— 
Any amounts allocated to the affordable housing 
fund of an enterprise shall be used or committed for 
use within two years of the date of such allocation. 
‘‘(5) USE OF RETURNS.—The Director shall, by 
regulation—
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HR 1461 RFS 
‘‘(A) provide that any return on a loan or 
other investment of any amounts allocated pur-
suant to subsection (b) to the affordable hous-
ing fund of an enterprise shall count against 
the allocation required under subsection (b) to 
be made by the enterprise for the year following 
such return; and 
‘‘(B) establish such limitations as may be 
necessary to ensure that the amount or likeli-
hood of return is not the primary consideration 
of awarding of allocated amounts to recipients. 
‘‘(6) PROHIBITED USES.—The Director shall— 
‘‘(A) by regulation, set forth prohibited 
uses of amounts from the affordable housing 
funds of the enterprises, which shall include use 
for— 
‘‘(i) political activities; 
‘‘(ii) advocacy; 
‘‘(iii) lobbying, whether directly or 
through other parties; 
‘‘(iv) counseling services; 
‘‘(v) travel expenses; and 
‘‘(vi) preparing or providing advice on 
tax returns;
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HR 1461 RFS 
‘‘(B) by regulation, provide that, except as 
provided in subparagraph (C), amounts allo-
cated to the affordable housing fund of an en-
terprise may not be used for administrative, 
outreach, or other costs of— 
‘‘(i) the enterprise; or 
‘‘(ii) any recipient of amounts from 
the affordable housing fund; and 
‘‘(C) by regulation, limit the amount of 
any such contributions that may be used for ad-
ministrative costs of the enterprise of maintain-
ing the affordable housing fund and carrying 
out the program under this section. 
‘‘(7) PROHIBITION OF CONSIDERATION OF USE 
FOR
MEETING
HOUSING
GOALS.—In determining 
compliance with the housing goals under this sub-
part, the Director may not consider amounts used 
under this section for eligible activities under sub-
section (d). The Director shall give credit toward the 
achievement of such housing goals to purchases of 
mortgages for housing that receives funding under 
this section, but only to the extent that such pur-
chases are funded other than under this section. 
‘‘(8) PROHIBITION
ON
CERTAIN
REDISTRIBU-
TION OF AMOUNTS.—The Director shall, by regula-
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HR 1461 RFS 
tion, ensure that amounts from the affordable hous-
ing fund of an enterprise awarded under this section 
to a national nonprofit housing intermediary are not 
redistributed to other nonprofit entities. 
‘‘(g) ACCOUNTABILITY OF RECIPIENTS AND ENTER-
PRISES.— 
‘‘(1) RECIPIENTS.— 
‘‘(A) TRACKING OF FUNDS.—The Director 
shall— 
‘‘(i) require each enterprise to develop 
and maintain a system to ensure that each 
recipient of amounts from the affordable 
housing fund of the enterprise uses such 
amounts in accordance with this section, 
the regulations issued under this section, 
and any requirements or conditions under 
which such amounts were provided; and 
‘‘(ii) establish minimum requirements 
for agreements, between the enterprises 
and recipients, regarding grants from the 
affordable housing funds of the enter-
prises, which shall include— 
‘‘(I) appropriate continuing fi-
nancial and project reporting, record 
retention, and audit requirements for
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HR 1461 RFS 
the duration of the grant to ensure 
compliance with the limitations and 
requirements of this section and the 
regulation under this section; and 
‘‘(II) any other requirements that 
the Director determines are necessary 
to ensure appropriate grant adminis-
tration and compliance. 
‘‘(B) MISUSE OF FUNDS.—If an enterprise 
determines that any recipient of amounts from 
the affordable housing fund of the enterprise 
has used any such amounts in a manner that 
is materially in violation of this section, the reg-
ulations issued under this section, or any re-
quirements or conditions under which such 
amounts were provided— 
‘‘(i) the enterprise shall notify the Di-
rector of such misuse of amounts and the 
actions taken under this subparagraph 
with respect to the recipient; 
‘‘(ii) such recipient shall be ineligible 
in perpetuity to receive of any further 
amounts from the affordable housing fund 
of such enterprise; and
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HR 1461 RFS 
‘‘(iii) the enterprise shall require the 
recipient to reimburse the enterprise for 
such misused amounts and return to the 
enterprise any amounts from the afford-
able housing fund of the enterprise that re-
main unused or uncommitted for use. 
The remedies under this subparagraph are in 
addition to any other remedies that may be 
available under law. 
‘‘(2) ENTERPRISES.— 
‘‘(A) QUARTERLY REPORTS.—The Director 
shall require each enterprise to submit a report, 
on a quarterly basis, to the Director and the af-
fordable housing board established under sub-
section (j) describing the activities funded 
under this section during such quarter with 
amounts from the affordable housing fund of 
the enterprise established under this section. 
The Director shall make such reports publicly 
available. The affordable housing board shall 
review each report by an enterprise to deter-
mine the consistency of such activities funded 
with the criteria for selection of such activities 
established pursuant to subsection (k)(2)(C).
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HR 1461 RFS 
‘‘(B) REPLENISHMENT.—If the Director 
determines that an activity funded by an enter-
prise with amounts from the affordable housing 
fund of the enterprise is not consistent with the 
criteria established pursuant to subsection 
(k)(2)(C), the Director shall require the enter-
prise to allocate to such affordable housing 
fund (in addition to amounts allocated in com-
pliance with subsection (b)) an amount equal to 
the sum of the amounts from the affordable 
housing fund used and further committed for 
use for such activity. 
‘‘(h) CAPITAL REQUIREMENTS.—The utilization or 
commitment of amounts from the affordable housing fund 
of an enterprise shall not be subject to the risk-based cap-
ital requirements established pursuant to section 1361(a). 
‘‘(i) REPORTING REQUIREMENT.—Each enterprise 
shall include, in the report required under section 309(m) 
of the Federal National Mortgage Association Charter Act 
or section 307(f) of the Federal Home Loan Mortgage 
Corporation Act, as applicable, a description of the actions 
taken by the enterprise to utilize or commit amounts allo-
cated under this section to the affordable housing fund 
of the enterprise established under this section. 
‘‘(j) AFFORDABLE HOUSING BOARD.—
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HR 1461 RFS 
‘‘(1) APPOINTMENT.—The Director shall ap-
point an affordable housing board of 7, 9, or 11 per-
sons, who shall include— 
‘‘(A) the Director, or the Director’s des-
ignee; 
‘‘(B) the Secretary of Housing and Urban 
Development, or the Secretary’s designee; 
‘‘(C) the Secretary of Agriculture, or the 
Secretary’s designee; 
‘‘(D) 2 persons from for-profit organiza-
tions or businesses actively involved in pro-
viding or promoting affordable housing for ex-
tremely low- and very low-income households; 
and 
‘‘(E) 2 persons from nonprofit organiza-
tions actively involved in providing or promoting 
affordable housing for extremely low- and very 
low-income households. 
‘‘(2) TERMS.— 
‘‘(A) IN GENERAL.—Except as provided in 
subparagraph (B), the term of each member of 
the affordable housing board appointed pursu-
ant to paragraph (1) (but not including mem-
bers appointed pursuant to subparagraphs (A), 
(B), and (C)) shall be 3 years.
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HR 1461 RFS 
‘‘(B) INITIAL APPOINTEES.—The Director 
shall appoint the initial members of the afford-
able housing board not later than the expiration 
of the 60-day period beginning on the effective 
date under section 185 of the Federal Housing 
Finance Reform Act of 2005. As designated by 
the Director at the time of appointment, of the 
members of the affordable housing board first 
appointed pursuant to paragraph (1) (but not 
including members appointed pursuant to sub-
paragraphs (A), (B), and (C))— 
‘‘(i) in the case of a board having 7 
members— 
‘‘(I) one shall be appointed for a 
term of one year; and 
‘‘(II) one shall be appointed for a 
term of two years; 
‘‘(ii) in the case of a board having 9 
members— 
‘‘(I) two shall be appointed for a 
term of one year; and 
‘‘(II) two shall be appointed for a 
term of two years; and 
‘‘(iii) in the case of a board having 11 
members—
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HR 1461 RFS 
‘‘(I) two shall be appointed for a 
term of one year; and 
‘‘(II) three shall be appointed for 
a term of two years; 
‘‘(3) DUTIES.—The duties of the affordable 
housing board shall be— 
‘‘(A) to determine extremely low- and very 
low-income housing needs; 
‘‘(B) to advise the Director with respect 
to— 
‘‘(i) establishment of the selection cri-
teria under subsection (k)(2)(C) that pro-
vide for appropriate use of amounts from 
the affordable housing funds of the enter-
prises to meet such needs; and 
‘‘(ii) operation of, and changes to, the 
program under this section appropriate to 
meet such needs; and 
‘‘(C) to review the reports submitted by 
the enterprises pursuant to subsection (g)(1) to 
determine whether the activities funded using 
amounts from the affordable housing funds of 
the enterprises comply with the regulations 
issued pursuant to subsection (k)(2)(C) and in-
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HR 1461 RFS 
form the Director of such determinations, for 
purposes of subsection (g)(2). 
‘‘(4) MEETINGS.—The board shall meet not less 
than quarterly, except that during the 2-year period 
referred to in paragraph (7), the board shall meet 
only as the Director determines necessary. 
‘‘(5) EXPENSES AND PER DIEM.—Members of 
the board shall receive travel expenses, including per 
diem in lieu of subsistence, in accordance with sec-
tions 5702 and 5703 of title 5, United States Code. 
‘‘(6) ADVISORY COMMITTEE.—The board shall 
be considered an advisory committee for purposes of 
the Federal Advisory Committee Act (5 U.S.C. 
App.). 
‘‘(7) TERMINATION.— The board shall termi-
nate upon the expiration of the 2-year period that 
begins upon the conclusion of the last year referred 
to in subsection (b)(1)(C). 
‘‘(k) REGULATIONS.— 
‘‘(1) IN
GENERAL.—The Director shall issue 
regulations to carry out this section. 
‘‘(2) REQUIRED
CONTENTS.—The regulations 
issued under this subsection shall include— 
‘‘(A) authority for the Director to audit, 
provide for an audit, or otherwise verify an en-
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HR 1461 RFS 
terprise’s activities, to ensure compliance with 
this section; 
‘‘(B) a requirement that the Director en-
sure that the affordable housing fund of each 
enterprise is audited not less than annually to 
ensure compliance with this section; 
‘‘(C) requirements for a process for appli-
cation to, and selection by, an enterprise for ac-
tivities to be funded with amounts from the af-
fordable housing fund, which shall provide 
that— 
‘‘(i) selection shall be based upon spe-
cific criteria, which shall provide that— 
‘‘(I) in any selection of activities 
occurring during the 2-year period be-
ginning on the effective date under 
section 185 of the Federal Housing 
Finance Reform Act of 2005, addi-
tional weight shall be given to applica-
tions for eligible activities under sub-
section (d) that— 
‘‘(aa) are to be carried out 
in any area that was declared by 
the President as a major disaster 
area pursuant to the Robert T.
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HR 1461 RFS 
Stafford 
Disaster 
Relief 
and 
Emergency Assistance Act as re-
sult of Hurricane Katrina or 
Hurricane Rita in 2005; or 
‘‘(bb) the enterprise deter-
mines, in accordance with regula-
tions issued by the Director, 
serve persons significantly af-
fected by the occurrence of Hur-
ricane Katrina or Hurricane Rita 
in 2005 (including persons dis-
placed as a result of such hurri-
canes and persons whose afford-
able housing opportunities are 
significantly affected by the pres-
ence of persons displaced as a re-
sult of such hurricanes); and 
‘‘(II) taking into consideration 
any additional weight afforded appli-
cations pursuant to subclause (I), pri-
ority in funding shall be based upon— 
‘‘(aa) whether activities are 
to be carried out in any area 
that, not more than 2 years be-
fore such selection, was declared
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HR 1461 RFS 
by the President as a major dis-
aster area pursuant to the Rob-
ert T. Stafford Disaster Relief 
and Emergency Assistance Act; 
‘‘(bb) greatest impact; 
‘‘(cc) geographic diversity; 
‘‘(dd) 
ability 
to 
obligate 
amounts and undertake activities 
so funded in a timely manner; 
‘‘(ee) in the case of rental 
housing projects under subsection 
(d)(1), the extent to which rents 
for units in the project funded 
are affordable, especially for ex-
tremely low-income families; and 
‘‘(ff) in the case of rental 
housing projects under subsection 
(d)(1), the extent of the duration 
for which such rents will remain 
affordable; and 
‘‘(ii) an enterprise may not require for 
such selection that an activity involve fi-
nancing or underwriting of any kind by the 
enterprise (other than funding through the 
affordable housing fund of the enterprise)
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HR 1461 RFS 
and may not give preference in such selec-
tion to activities that involve such financ-
ing; 
‘‘(D) requirements to ensure that amounts 
from the affordable housing funds of the enter-
prises used for rental housing under subsection 
(d)(1) are used only for the benefit of extremely 
low- and very-low income families; and 
‘‘(E) limitations on public infrastructure 
development activities that are eligible pursuant 
to subsection (d)(3) for funding with amounts 
from the affordable housing funds of the enter-
prises and requirements for the connection be-
tween such activities and housing activities 
funded under paragraph (1) or (2) of sub-
section (d). 
‘‘(l) ENFORCEMENT.—Compliance by the enterprises 
with the requirements under this section shall be enforce-
able 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 section.’’. 
(b) CONTRIBUTIONS FOR TRANSITION PERIOD.— 
(1) RESERVATION AND CONTRIBUTION; PROHI-
BITION OF DOUBLE CONTRIBUTIONS.—If the date of
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the enactment of this Act does not occur in the same 
calendar year as the effective date under section 185 
of this Act, each enterprise (as such term is defined 
in section 1303 of the Housing and Community De-
velopment Act of 1992) shall, in the year that such 
date of enactment occurs, reserve for contribution to 
the affordable housing fund to be established by the 
enterprise pursuant to section 1337 of such Act (as 
amended by subsection (a) of this section) an 
amount equal to 3.5 percent of the after-tax income 
of the enterprise for the preceding year. Upon the 
establishment of such affordable housing fund, each 
enterprise shall allocate to such fund the amounts 
reserved under this paragraph by the enterprise. 
(2) EXCEPTION
TO
DEADLINE
FOR
COMMIT-
MENT.—Section 1337(f)(4) of the Housing and 
Community Development Act of 1992 (as amended 
by subsection (a) of this section) shall not apply to 
any amounts allocated to the affordable housing 
fund of an enterprise pursuant to paragraph (1) of 
this subsection. 
(3) AFTER-TAX INCOME.—For purposes of this 
subsection, the term ‘‘after-tax income’’ has the 
meaning provided in subsection (b)(5) of the new
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HR 1461 RFS 
section 1337 to be inserted by the amendment made 
by subsection (a) of this section. 
(4) EFFECTIVE
DATE.—This subsection shall 
take effect on the date of the enactment of this Act. 
(c) REFCORP PAYMENTS.—Section 21B(f)(2) of 
the Federal Home Loan Bank Act (12 U.S.C. 
1441b(f)(2)) is amended— 
(1) in subparagraph (E), by striking ‘‘and (D)’’ 
and inserting ‘‘(D), and (E)’’; 
(2) by redesignating subparagraph (E) as sub-
paragraph (F); and 
(3) by inserting after subparagraph (D) the fol-
lowing new subparagraph: 
‘‘(E) PAYMENTS
BY
FANNIE
MAE
AND 
FREDDIE
MAC.—To 
the 
extent 
that 
the 
amounts available pursuant to subparagraphs 
(A), (B), (C), and (D) are insufficient to cover 
the amount of interest payments, each enter-
prise (as such term is defined in section 1303 
of the Housing and Community Development 
Act of 1992 (42 U.S.C. 4502)) shall transfer to 
the Funding Corporation in each calendar year 
the amounts allocated for use under this sub-
paragraph pursuant to section 1337(f)(1) of 
such Act.’’.
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SEC. 129. CONSISTENCY WITH MISSION. 
Subpart B of part 2 of subtitle A of title XIII of the 
Housing and Community Development Act of 1992 (12 
U.S.C. 4561 et seq.) is amended by adding after section 
1337, as added by section 127 of this Act, the following 
new section: 
‘‘SEC. 1338. CONSISTENCY WITH MISSION. 
‘‘This subpart may not be construed to authorize an 
enterprise to engage in any program or activity that con-
travenes or is inconsistent with the Federal National 
Mortgage Association Charter Act or the Federal Home 
Loan Mortgage Corporation Act.’’. 
SEC. 130. ENFORCEMENT. 
(a) 
CEASE-AND-DESIST
PROCEEDINGS.—Section 
1341 of the Housing and Community Development Act 
of 1992 (12 U.S.C. 4581) is amended— 
(1) by striking subsection (a) and inserting the 
following new subsection: 
‘‘(a) GROUNDS FOR ISSUANCE.—The Director may 
issue and serve a notice of charges under this section upon 
an enterprise if the Director determines— 
‘‘(1) the enterprise has failed to meet any hous-
ing goal established under subpart B, following a 
written notice and determination of such failure in 
accordance with section 1336;
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‘‘(2) the enterprise has failed to submit a report 
under section 1314, following a notice of such fail-
ure, an opportunity for comment by the enterprise, 
and a final determination by the Director; 
‘‘(3) the enterprise has failed to submit the in-
formation required under subsection (m) or (n) of 
section 309 of the Federal National Mortgage Asso-
ciation Charter Act, or subsection (e) or (f) of sec-
tion 307 of the Federal Home Loan Mortgage Cor-
poration Act; 
‘‘(4) the enterprise has violated any provision of 
this part or any order, rule or regulation under this 
part; 
‘‘(5) the enterprise has failed to submit a hous-
ing plan that complies with section 1336(c) within 
the applicable period; or 
‘‘(6) the enterprise has failed to comply with a 
housing plan under section 1336(c).’’; 
(2) in subsection (b)(2), by striking ‘‘requiring 
the enterprise to’’ and all that follows through the 
end of the paragraph and inserting the following: 
‘‘requiring the enterprise to— 
‘‘(A) comply with the goal or goals; 
‘‘(B) submit a report under section 1314;
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‘‘(C) comply with any provision this part 
or any order, rule or regulation under such 
part; 
‘‘(D) submit a housing plan in compliance 
with section 1336(c); 
‘‘(E) comply with a housing plan submitted 
under section 1336(c); or 
‘‘(F) provide the information required 
under subsection (m) or (n) of section 309 of 
the Federal National Mortgage Association 
Charter Act or subsection (e) or (f) of section 
307 of the Federal Home Loan Mortgage Cor-
poration Act, as applicable.’’; 
(3) in subsection (c), by inserting ‘‘date of the’’ 
before ‘‘service of the order’’; and 
(4) by striking subsection (d). 
(b) AUTHORITY OF DIRECTOR TO ENFORCE NOTICES 
AND ORDERS.—Section 1344 of the Housing and Commu-
nity Development Act of 1992 (12 U.S.C. 4584) is amend-
ed by striking subsection (a) and inserting the following 
new subsection: 
‘‘(a) ENFORCEMENT.—The Director may, in the dis-
cretion of the Director, apply to the United States District 
Court for the District of Columbia, or the United States 
district court within the jurisdiction of which the head-
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quarters of the enterprise is located, for the enforcement 
of any effective and outstanding notice or order issued 
under section 1341 or 1345, or request that the Attorney 
General of the United States bring such an action. Such 
court shall have jurisdiction and power to order and re-
quire compliance with such notice or order.’’. 
(c) CIVIL MONEY PENALTIES.—Section 1345 of the 
Housing and Community Development Act of 1992 (12 
U.S.C. 4585) is amended— 
(1) by striking subsections (a) and (b) and in-
serting the following new subsections: 
‘‘(a) AUTHORITY.—The Director may impose a civil 
money penalty, in accordance with the provisions of this 
section, on any enterprise that has failed to— 
‘‘(1) meet any housing goal established under 
subpart B, following a written notice and determina-
tion of such failure in accordance with section 
1336(b); 
‘‘(2) submit a report under section 1314, fol-
lowing a notice of such failure, an opportunity for 
comment by the enterprise, and a final determina-
tion by the Director; 
‘‘(3) submit the information required under 
subsection (m) or (n) of section 309 of the Federal 
National Mortgage Association Charter Act, or sub-
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section (e) or (f) of section 307 of the Federal Home 
Loan Mortgage Corporation Act; 
‘‘(4) comply with any provision of this part or 
any order, rule or regulation under this part; 
‘‘(5) submit a housing plan pursuant to section 
1336(c) within the required period; or 
‘‘(6) comply with a housing plan for the enter-
prise under section 1336(c). 
‘‘(b) AMOUNT OF PENALTY.—The amount of the 
penalty, as determined by the Director, may not exceed— 
‘‘(1) for any failure described in paragraph (1), 
(5), or (6) of subsection (a), $50,000 for each day 
that the failure occurs; and 
‘‘(2) for any failure described in paragraph (2), 
(3), or (4) of subsection (a), $20,000 for each day 
that the failure occurs.’’; 
(2) in subsection (c)— 
(A) in paragraph (1)— 
(i) in subparagraph (A), by inserting 
‘‘and’’ after the semicolon at the end; 
(ii) in subparagraph (B), by striking 
‘‘; and’’ and inserting a period; and 
(iii) by striking subparagraph (C); 
and
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(B) in paragraph (2), by inserting after 
the period at the end the following: ‘‘In deter-
mining the penalty under subsection (a)(1), the 
Director shall give consideration to the length 
of time the enterprise should reasonably take to 
achieve the goal.’’; 
(3) in the first sentence of subsection (d)— 
(A) by striking ‘‘request the Attorney Gen-
eral of the United States to’’ and inserting ‘‘, 
in the discretion of the Director,’’; and 
(B) by inserting ‘‘, or request that the At-
torney General of the United States bring such 
an action’’ before the period at the end; 
(4) by striking subsection (f); and 
(5) by redesignating subsection (g) as sub-
section (f). 
(d) 
ENFORCEMENT
OF
SUBPOENAS.—Section 
1348(c) of the Housing and Community Development Act 
of 1992 (12 U.S.C. 4588(c)) is amended— 
(1) by striking ‘‘request the Attorney General 
of the United States to’’ and inserting ‘‘, in the dis-
cretion of the Director,’’; and 
(2) by inserting ‘‘or request that the Attorney 
General of the United States bring such an action,’’ 
after ‘‘District of Columbia,’’