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Q: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fairness for Homeowners Act of 
2007''.

SEC. 2. ORIGINATIONS OF CONSUMER CREDIT TRANSACTIONS SECURED BY THE 
              CONSUMER'S PRINCIPAL DWELLING.

    (a) In General.--The Truth in Lending Act (15 U.S.C. 1601 et seq.) 
is amended by inserting after section 129 the following new section:
``Sec. 129A. Originations of consumer credit transactions secured by 
              the consumer's principal dwelling
    ``(a) Definitions.--For purposes of this section, the following 
definitions shall apply:
            ``(1) Fully indexed rate.--The term `fully indexed rate' 
        equals the index rate prevailing at the time a consumer credit 
        transaction secured by a consumer's principal dwelling is 
        originated, plus the margin that will apply after the 
        expiration of an introductory interest rate.
            ``(2) Mortgage broker.--The term `mortgage broker' means 
        any person who is defined as a mortgage broker under applicable 
        State law.
    ``(b) Requirements for Originators.--
            ``(1) Ability to pay.--
                    ``(A) In general.--No creditor or mortgage broker 
                may make, provide, or arrange for any consumer credit 
                transaction secured by a consumer's principal dwelling 
                without verifying the consumer's reasonable ability to 
                pay the scheduled payments of the following, as 
                applicable: principal; interest; real estate taxes; 
                homeowner's insurance, assessments, and mortgage 
                insurance premiums.
                    ``(B) Variable interest rate.--In the case of any 
                consumer credit transaction secured by a consumer's 
                principal dwelling for which the applicable annual 
                percentage rate may vary over the life of the credit, 
                the reasonable ability to pay shall be determined, for 
                purposes of this paragraph, on the basis of a fully 
                indexed rate plus 200 basis points and a repayment 
                schedule which achieves full amortization over the life 
                of the extension of credit.
                    ``(C) Verification of consumer income and financial 
                resources.--In the case of any consumer credit 
                transaction secured by a consumer's principal dwelling, 
                the income and financial resources of the consumer 
                shall be verified for purposes of this paragraph by tax 
                returns, payroll receipts, bank records, or other 
                similarly reliable documents.
                    ``(D) Other criteria.--No provision of this 
                paragraph shall be construed as prohibiting reliance on 
                criteria other than a consumer's income and financial 
                resources to establish the reasonable ability of the 
                consumer to repay any consumer credit transaction 
                secured by the consumer's principal dwelling, to the 
                extent such other criteria are also verified through 
                reasonably reliable methods and documentation.
                    ``(E) Consumer statement is insufficient proof.--A 
                statement by a consumer of the consumer's income or 
                financial resources shall not be sufficient to 
                establish the existence of any income or financial 
                resources when verifying the reasonable ability of the 
                consumer to repay any consumer credit transaction 
                secured by the consumer's principal dwelling, for 
                purposes of this paragraph.
            ``(2) Prohibition on steering.--No creditor or mortgage 
        broker may make, provide, or arrange for any consumer credit 
        transaction secured by a consumer's principal dwelling that is 
        of a lower investment grade if--
                    ``(A) the consumer's credit score; or
                    ``(B) comparable underwriting data, in any case in 
                which the creditor or mortgage broker does not utilize 
                credit scoring or a credit score for the consumer is 
                unavailable,
        indicates that the borrower may qualify for a consumer credit 
        transaction, available from or through the creditor or mortgage 
        broker, that is of a higher investment grade.
            ``(3) Prohibition on prepayment penalties for arms.--
                    ``(A) In general.--In the case of any consumer 
                credit transaction secured by a consumer's principal 
                dwelling that provides for variable rates of interest 
                on the credit extended under the transaction, the 
                transaction may not contain terms under which a 
                consumer must pay a prepayment penalty for paying all 
                or part of the principal before the date on which the 
                principal is due.
                    ``(B) Exclusion for jumbo mortgages.--Subparagraph 
                (A) shall not apply to any consumer credit transaction 
                secured by a consumer's principal dwelling the 
                principal amount (as defined in subsection (c)(2)) of 
                which exceeds the maximum dollar amount limitation (for 
                a residence of the applicable size) on the amount of 
                the principal obligation of a mortgage for a 1- to 4-
                family residence that may be purchased by the Federal 
                Home Loan Mortgage Corporation, as then in effect 
                pursuant to section 305(a)(2) of the Federal Home Loan 
                Mortgage Corporation Act.
    ``(c) Limitation on Financed Points, Charges, and Fees.--
            ``(1) In general.--No creditor or mortgage broker may, in 
        connection with any consumer credit transaction secured by the 
        consumer's principal dwelling, include in the principal amount 
        of such transaction any portion of any qualified finance charge 
        in excess of the amount which is equal to 5 percent of the 
        principal amount of the transaction.
            ``(2) Definitions.--For purposes of this subsection, the 
        following definitions shall apply:
                    ``(A) Qualified finance charge.--The term 
                `qualified finance charge' means the sum of--
                            ``(i) the finance charge as determined 
                        under section 106, minus any interest and time 
                        price differential; and
                            ``(ii) all compensation paid to a mortgage 
                        broker from any source in connection with this 
                        transaction.
                    ``(B) Principal amount.--The term `principal 
                amount' means--
                            ``(i) in the case of any consumer credit 
                        transaction under an open end credit plan 
                        secured by the consumer's principal dwelling, 
                        the maximum amount of credit that may be 
                        extended under the terms of such plan as 
                        determined without taking into account any 
                        amount included in determining the finance 
                        charge under section 106; and
                            ``(ii) in the case of any other consumer 
                        credit transaction secured by a consumer's 
                        principal dwelling, the amount financed (as 
                        defined in section 138(a)(2)).
            ``(3) Prohibition on excessive finance charges.--No 
        creditor or mortgage broker may, in connection with any 
        consumer credit transaction secured by the consumer's principal 
        dwelling, impose or receive any amount included in determining 
        the qualified finance charge for such transaction that exceeds 
        the amount which is equal to 5 percent of the principal amount 
        of the transaction.
            ``(4) Exception.--This subsection shall not apply to any 
        consumer credit transaction secured by the consumer's principal 
        dwelling that is ensured or guaranteed by the Secretary of 
        Housing and Urban Development, the Secretary of Veterans 
        Affairs, or the Farmers Home Administration.
    ``(d) Mortgage Broker Duties of Agency.--
            ``(1) In general.--Any mortgage broker acting to obtain or 
        arrange for any consumer credit transaction secured by the 
        consumer's principal dwelling shall be considered to have an 
        agency relationship with the consumer in all cases by operation 
        of law and shall comply with the following duties:
                    ``(A) Mortgage brokers shall act in the consumer's 
                best interest and in the utmost good faith toward each 
                consumer and shall not compromise a consumer's right or 
                interest in favor of another's right or interest, 
                including a right or interest of the mortgage broker.
                    ``(B) A mortgage broker shall not accept, give, or 
                charge any undisclosed compensation or realize any 
                undisclosed remuneration, either through direct or 
                indirect means, that inures to the benefit of the 
                mortgage broker on an expenditure made for the 
                consumer.
                    ``(C) Mortgage brokers shall carry out all lawful 
                instructions given by the consumer.
                    ``(D) Mortgage brokers shall disclose to consumers 
                all material facts of which the mortgage broker has 
                knowledge which might reasonably affect the consumer's 
                rights, interests, or ability to receive the consumer's 
                intended benefit from the consumer credit transaction, 
                but not facts which are reasonably susceptible to the 
                knowledge of the consumer.
                    ``(E) Mortgage brokers shall use reasonable care in 
                performing duties.
                    ``(F) Mortgage brokers shall account to a consumer 
                for all the consumer's money and property received as 
                agent.
            ``(2) Scope.--The duty of agency between mortgage broker 
        and consumer applies when the mortgage broker is acting in the 
        capacity of mortgage broker providing mortgage brokerage 
        services with respect to any consumer credit transaction 
        secured by the consumer's principal dwelling for which the 
        broker is not the creditor.
            ``(3) Rules of construction.--
                    ``(A) Fees for services rendered.--No provision of 
                this subsection shall be construed as prohibiting a 
                mortgage broker from contracting for or collecting a 
                fee for services rendered which had been disclosed to 
                the consumer in advance of the provision of such 
                services.
                    ``(B) Duty of broker.--No provision of this 
                subsection shall be construed as requiring a mortgage 
                broker--
                            ``(i) to obtain or arrange for any consumer 
                        credit transaction secured by the consumer's 
                        principal dwelling on behalf of a consumer that 
                        contains terms or conditions not available to 
                        the mortgage broker in the mortgage broker's 
                        usual course of business; or
                            ``(ii) to obtain or arrange for any 
                        consumer credit transaction secured by the 
                        consumer's principal dwelling from a creditor 
                        with whom the mortgage broker does not have a 
                        business relationship.
    ``(e) Independent Verification of Consumer Counseling Before 
Refinancing Special Mortgages.--
            ``(1) In general.--No creditor or mortgage broker may make, 
        provide, or arrange for any consumer credit transaction secured 
        by the consumer's principal dwelling all or a portion of the 
        proceeds of which are used to fully or partially pay off a 
        special mortgage unless the borrower has obtained a written 
        certification from an authorized independent loan counselor 
        that the borrower has received counseling on the advisability 
        of the transaction.
            ``(2) Definitions.--For purposes of this section, the 
        following definitions shall apply:
                    ``(A) Special mortgage.--The term `special 
                mortgage' means any consumer credit transaction secured 
                by the consumer's principal dwelling that was 
                originated, subsidized, funded, or guaranteed by or 
                through a State, tribal, or local government, or 
                nonprofit organization, that bears 1 or more of the 
                following nonstandard payment terms which substantially 
                benefit the consumer:
                            ``(i) Payments vary with income.
                            ``(ii) Payments of principal or interest 
                        are not required or can be deferred under 
                        specified conditions.
                            ``(iii) Principal or interest is forgivable 
                        under specified conditions.
                            ``(iv) Either no interest or an annual 
                        interest rate of 2 percent or less is charged 
                        in connection with the loan.
                    ``(B) Authorized loan counselor.--The term 
                `authorized independent loan counselor' means any 
                nonprofit, third-party individual or organization 
                providing homebuyer education programs, foreclosure 
                prevention services, mortgage loan counseling, or 
                credit counseling that is certified by the Secretary of 
                Housing and Urban Development, or certified by any 
                State housing agency or nonprofit organization 
                designated by such Secretary, for such purposes.
    ``(f) Minimum Financial Requirements for Mortgage Brokers.--No 
mortgage broker may obtain or arrange for any consumer credit 
transaction secured by the consumer's principal dwelling unless at all 
times the mortgage broker--
            ``(1) maintains a minimum net worth, net of intangibles, of 
        at least $500,000, as determined in accordance with generally 
        accepted accounting principles; or
            ``(2) maintains a surety bond or irrevocable letter of 
        credit in the amount of $50,000.
    ``(g) Enforcement.--For purposes of providing a cause of action for 
any failure by a mortgage broker to comply with any requirement imposed 
under this section, section 130(a) shall be applied with respect to any 
such failure--
            ``(1) by substituting `mortgage broker' for `creditor' each 
        place such term appears in such section; and
            ``(2) by treating all qualified finance charges (as defined 
        in subsection (c)(2)(A)) incurred in the origination of any 
        consumer credit transaction secured by the consumer's principal 
        dwelling as actual damages sustained by the consumer as a 
        result of the failure.
    ``(h) Exclusion of Reverse Mortgages.--This section shall not apply 
with respect to any consumer mortgage transaction that constitutes a 
reverse mortgage.''.
    (b) Technical and Conforming Amendments.--The Truth in Lending Act 
is amended--
            (1) in section 103 (u) (15 U.S.C. 1602(u)), by striking 
        ``and the disclosures required by section 129(a)'' and 
        inserting ``and the provisions of section 129 and 129A''; and
            (2) in section 130 (15 U.S.C. 1640), by inserting ``or 
        129A'' after section 129 each place such term appears.
    (c) Clerical Amendment.--The table of sections for chapter 2 of the 
Truth in Lending Act is amended by inserting after the item relating to 
section 129 the following new item:

``129A. Originations of consumer credit transactions secured by the 
                            consumer's principal dwelling.''.

A: Fairness for Homeowners Act of 2007 - Amends the Truth in Lending Act to prohibit any creditor or mortgage broker from making, providing, or arranging for any consumer credit transaction secured by a consumer's principal dwelling without verifying the consumer's reasonable ability to make the scheduled payments of principal, interest (including variable interest), real estate taxes, homeowner's insurance, assessments, and mortgage insurance premiums.

Prescribes criteria for determining the reasonable ability to make such payments.

Prohibits steering (arranging for a lower investment grade credit transaction if the consumer qualifies for a higher investment grade transaction) and prepayment penalties for adjustable rate mortgages (ARMs) that are not jumbo mortgages.

Limits financed points, finance charges, and fees to 5% of a transaction's principal, unless the transaction is ensured or guaranteed by the Secretary of Housing and Urban Development, the Secretary of Veterans Affairs, or the Farmers Home Administration.

Specifies duties of agency for mortgage brokers acting to obtain or arrange for any consumer credit transaction secured by the consumer's principal dwelling.

Requires creditors and mortgage brokers to obtain independent verification that a borrower seeking to refinance a special mortgage has received counseling on the transaction's advisability. Defines "special mortgage" as one that: (1) was originated, subsidized, funded, or guaranteed by or through a state, tribal, or local government, or nonprofit organization; and (2) bears one or more specified nonstandard payment terms which substantially benefit the consumer.

Prescribes minimum financial requirements for mortgage brokers.

Excludes reverse mortgages from coverage by this Act.
****
Q: SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Fracturing Regulations are Effective 
in State Hands Act''.

SEC. 2. FINDINGS.

    Congress finds that--
            (1) hydraulic fracturing is a commercially viable practice 
        that has been used in the United States for more than 60 years 
        in more than 1,000,000 wells;
            (2) the Ground Water Protection Council, a national 
        association of State water regulators that is considered to be 
        a leading groundwater protection organization in the United 
        States, released a report entitled ``State Oil and Natural Gas 
        Regulations Designed to Protect Water Resources'' and dated May 
        2009 finding that the ``current State regulation of oil and gas 
        activities is environmentally proactive and preventive'';
            (3) that report also concluded that ``[a]ll oil and gas 
        producing States have regulations which are designed to provide 
        protection for water resources'';
            (4) a 2004 study by the Environmental Protection Agency, 
        entitled ``Evaluation of Impacts to Underground Sources of 
        Drinking Water by Hydraulic Fracturing of Coalbed Methane 
        Reservoirs'', found no evidence of drinking water wells 
        contaminated by fracture fluid from the fracked formation;
            (5) a 2009 report by the Ground Water Protection Council, 
        entitled ``State Oil and Natural Gas Regulations Designed to 
        Protect Water Resources'', found a ``lack of evidence'' that 
        hydraulic fracturing conducted in both deep and shallow 
        formations presents a risk of endangerment to ground water;
            (6) a January 2009 resolution by the Interstate Oil and Gas 
        Compact Commission stated ``The states, who regulate 
        production, have comprehensive laws and regulations to ensure 
        operations are safe and to protect drinking water. States have 
        found no verified cases of groundwater contamination associated 
        with hydraulic fracturing.'';
            (7) on May 24, 2011, before the Oversight and Government 
        Reform Committee of the House of Representatives, Lisa Jackson, 
        the Administrator of the Environmental Protection Agency, 
        testified that she was ``not aware of any proven case where the 
        fracking process itself has affected water'';
            (8) in 2011, Bureau of Land Management Director Bob Abbey 
        stated, ``We have not seen evidence of any adverse effect as a 
        result of the use of the chemicals that are part of that 
        fracking technology.'';
            (9)(A) activities relating to hydraulic fracturing (such as 
        surface discharges, wastewater disposal, and air emissions) are 
        already regulated at the Federal level under a variety of 
        environmental statutes, including portions of--
                    (i) the Federal Water Pollution Control Act (33 
                U.S.C. 1251 et seq.);
                    (ii) the Safe Drinking Water Act (42 U.S.C. 300f et 
                seq.); and
                    (iii) the Clean Air Act (42 U.S.C. 7401 et seq.); 
                but
            (B) Congress has continually elected not to include the 
        hydraulic fracturing process in the underground injection 
        control program under the Safe Drinking Water Act (42 U.S.C. 
        300f et seq.);
            (10) in 2011, the Secretary of the Interior announced the 
        intention to promulgate new Federal regulations governing 
        hydraulic fracturing on Federal land;
            (11) a February 2012 study by the Energy Institute at the 
        University of Texas at Austin, entitled ``Fact-Based Regulation 
        for Environmental Protection in Shale Gas Development'', found 
        that ``[n]o evidence of chemicals from hydraulic fracturing 
        fluid has been found in aquifers as a result of fracturing 
        operations''; and
            (12) on October 1, 2014, the Ground Water Protection 
        Council and State Oil and Gas Regulatory Exchange released a 
        report entitled ``State Oil and Gas Regulations Designed to 
        Protect Water Resources'' that describes the cutting edge of 
        State-based oil and gas regulations, concluding that ``In step 
        with dramatic industry growth over the past five years, states 
        have substantially improved groundwater protection laws and 
        regulations governing oil and natural gas production.''.

SEC. 3. DEFINITION OF FEDERAL LAND.

    In this Act, the term ``Federal land'' means--
            (1) public lands (as defined in section 103 of the Federal 
        Land Policy and Management Act of 1976 (43 U.S.C. 1702));
            (2) National Forest System land;
            (3) land under the jurisdiction of the Bureau of 
        Reclamation; and
            (4) land under the jurisdiction of the Corps of Engineers.

SEC. 4. STATE AUTHORITY.

    (a) In General.--A State shall have the sole authority to 
promulgate or enforce any regulation, guidance, or permit requirement 
regarding the treatment of a well by the application of fluids under 
pressure to which propping agents may be added for the expressly 
designed purpose of initiating or propagating fractures in a target 
geologic formation in order to enhance production of oil, natural gas, 
or geothermal production activities on or under any land within the 
boundaries of the State.
    (b) Federal Land.--The treatment of a well by the application of 
fluids under pressure to which propping agents may be added for the 
expressly designed purpose of initiating or propagating fractures in a 
target geologic formation in order to enhance production of oil, 
natural gas, or geothermal production activities on Federal land shall 
be subject to the law of the State in which the land is located.

A: Fracturing Regulations are Effective in State Hands Act  This bill gives states the sole authority to promulgate or enforce any regulation, guidance, or permit requirement regarding hydraulic fracturing on or under any land within their boundaries. Hydraulic fracturing or fracking is a process to extract underground resources such as oil or gas from a geologic formation by injecting water, a propping agent (e.g., sand), and chemical additives into a well under enough pressure to fracture the geological formation. Hydraulic fracturing on federal land must comply with the law of the state in which the land is located.
****
Q: SECTION 1. SHORT TITLE.

     This Act may be cited as the ``Housing Preservation Matching Grant 
Act of 2003''.

SEC. 2. FINDINGS AND PURPOSES.

    (a) Findings.--The Congress finds that--
            (1) more than 55,300 affordable housing dwelling units in 
        the United States have been lost through termination of low 
        income affordability requirements, which usually involves the 
        prepayment of the outstanding principal balance under the 
        mortgage on the project in which such units are located;
            (2) more than 265,000 affordable housing dwelling units in 
        the United States are currently at risk of prepayment;
            (3) the loss of the privately owned, federally assisted 
        affordable housing, which is occurring during a period when 
        rents for unassisted housing are increasing and few units of 
        additional affordable housing are being developed, will cause 
        unacceptable harm on current tenants of affordable housing and 
        will precipitate a national crisis in the supply of housing for 
        low-income households;
            (4) the demand for affordable housing far exceeds the 
        supply of such housing, as evidenced by studies in 1998 that 
        found that--
                    (A) 5,300,000 households (one-seventh of all 
                renters in the Nation) have worst-case housing needs; 
                and
                    (B) the number of families with at least one full-
                time worker and having worst-case housing needs 
                increased from 1991 to 1995 by 265,000 (24 percent) to 
                almost 1,400,000;
            (5) the shortage of affordable housing in the United States 
        reached a record high in 1995, when the number of low-income 
        households exceeded the number of low-cost rental dwelling 
        units by 4,400,000;
            (6) between 1990 and 1995, the shortage of affordable 
        housing in the United States increased by 1,000,000 dwelling 
        units, as the supply of low-cost units decreased by 100,000 and 
        the number of low-income renter households increased by 
        900,000;
            (7) there are nearly 2 low-income renters in the United 
        States for every low-cost rental dwelling unit;
            (8) 2 of every 3 low-income renters receive no housing 
        assistance and about 2,000,000 low-income households remain on 
        waiting lists for affordable housing;
            (9) the shortage of affordable housing dwelling units 
        results in low-income households that are not able to acquire 
        low-cost rental units paying large proportions of their incomes 
        for rent; and
            (10) in 1995, 82 percent of low-income renter households 
        were paying more than 30 percent of their incomes for rent and 
        utilities.
    (b) Purpose.--It is the purpose of this Act--
            (1) to promote the preservation of affordable housing units 
        by providing matching grants to States that have developed and 
        funded programs for the preservation of privately owned housing 
        that is affordable to low-income families and persons and was 
        produced for such purpose with Federal assistance;
            (2) to minimize the involuntary displacement of tenants who 
        are currently residing in such housing, many of whom are 
        elderly or disabled persons; and
            (3) to continue the partnerships among the Federal 
        Government, State and local governments, and the private sector 
        in operating and assisting housing that is affordable to low-
        income Americans.

SEC. 3. AUTHORITY.

     The Secretary of Housing and Urban Development shall, to the 
extent amounts are made available pursuant to section 11, make grants 
under this Act to States for low-income housing preservation.

SEC. 4. USE OF GRANTS.

    (a) In General.--Amounts from grants under this Act may be used 
only for assistance for acquisition, preservation incentives, operating 
costs, and capital expenditures for a housing project that meets the 
requirements under subsection (b), (c), or (d).
    (b) Projects With Hud-Insured Mortgages.--A project meets the 
requirements under this subsection only if--
            (1) the project is financed by a loan or mortgage that is--
                    (A) insured or held by the Secretary under section 
                221(d)(3) of the National Housing Act and receiving 
                loan management assistance under section 8 of the 
                United States Housing Act of 1937 due to a conversion 
                from section 101 of the Housing and Urban Development 
                Act of 1965;
                    (B) insured or held by the Secretary and bears 
                interest at a rate determined under the proviso of 
                section 221(d)(5) of the National Housing Act;
                    (C) insured, assisted, or held by the Secretary or 
                a State or State agency under section 236 of the 
                National Housing Act; or
                    (D) held by the Secretary and formerly insured 
                under a program referred to in subparagraph (A), (B), 
                or (C);
            (2) the project is subject to an unconditional waiver of, 
        with respect to the mortgage referred to in paragraph (1)--
                    (A) all rights to any prepayment of the mortgage; 
                and
                    (B) all rights to any voluntary termination of the 
                mortgage insurance contract for the mortgage; and
            (3) the owner of the project has entered into binding 
        commitments (applicable to any subsequent owner) to extend all 
        low-income affordability restrictions for the project, 
        including any such restrictions imposed because of any contract 
        for project-based assistance for the project.
    (c) Projects With Section 8 Project-Based Assistance.--A project 
meets the requirements under this subsection only if--
            (1) the project is subject to a contract for project-based 
        assistance; and
            (2) the owner of the project has entered into binding 
        commitments (applicable to any subsequent owner) to extend such 
        assistance for the maximum period allowable under law (subject 
        to the availability of amounts for such purpose) and to extend 
        any low-income affordability restrictions applicable to the 
        project in connection with such assistance.
    (d) Projects Purchased by Residents.--A project meets the 
requirements under this subsection only if the project--
            (1) is or was eligible low-income housing (as such term is 
        defined in section 229 of the Low-Income Housing Preservation 
        and Resident Homeownership Act of 1990 (42 U.S.C. 4119); and
            (2) has been purchased by a resident council for the 
        housing or is approved by the Secretary for such purchase, for 
        conversion to homeownership housing under a resident 
        homeownership program meeting the requirements under section 
        226 of such Act (12 U.S.C. 4116).
    (e) Combination of Assistance.--Notwithstanding subsection (a), any 
project that is otherwise eligible for assistance with grant amounts 
provided under this Act because the project meets the requirements 
under subsection (b) or (c) and that also meets the requirements under 
paragraph (1) of the other of such subsections, shall be eligible for 
such assistance only if the project complies with all of the 
requirements under such other subsection.

SEC. 5. GRANT AMOUNT LIMITATION.

     The Secretary shall limit the portion of the aggregate amount of 
grants under this Act made available for any fiscal year that may be 
provided to a single State based upon the proportion of such State's 
need (as determined by the Secretary) for such assistance to the 
aggregate need among all States approved for such assistance for such 
fiscal year.

SEC. 6. MATCHING REQUIREMENT.

    (a) In General.--The Secretary may not make a grant under this Act 
to any State for any fiscal year in an amount that exceeds twice the 
amount that the State certifies, as the Secretary shall require, that 
the State will contribute for such fiscal year, or has contributed 
since January 1, 2003, from non-Federal sources for the purposes under 
section 4(a).
    (b) Treatment of Previous Contributions.--Any portion of amounts 
contributed after January 1, 2003, that are counted for purposes of 
meeting the requirement under subsection (a) for a fiscal year may not 
be counted for such purposes for any subsequent fiscal year.
    (c) Treatment of Tax Credits.--Tax credits provided under section 
42 of the internal revenue code of 1986 and proceeds from the sale of 
tax-exempt bonds by any State or local government entity shall not be 
considered non-Federal sources for purposes of this section

SEC. 7. TREATMENT OF SUBSIDY LAYERING REQUIREMENTS.

     Neither section 6 nor any other provision of this Act may be 
construed to prevent the use of tax credits provided under section 42 
of the Internal Revenue Code of 1986 in connection with housing 
assisted with grant amounts provided under this Act, to the extent that 
such use is in accordance with section 102(d) of the Department of 
Housing and Urban Development Reform Act of 1989 (42 U.S.C. 3545(d)) 
and section 911 of the Housing and Community Development Act of 1992 
(42 U.S.C. 3545 note).

SEC. 8. APPLICATIONS.

     The Secretary shall provide for States (through appropriate State 
agencies) to submit applications for grants under this Act. The 
Secretary shall require the applications to contain any information and 
certifications necessary for the Secretary to determine whether the 
State is eligible to receive such a grant.

SEC. 9. DEFINITIONS.

     For purposes of this Act, the following definitions shall apply:
            (1) Low-income affordability restrictions.--The term ``low-
        income affordability restrictions'' means, with respect to a 
        housing project, any limitations imposed by regulation or 
        regulatory agreement on rents for tenants of the project, rent 
        contributions for tenants of the project, or income-eligibility 
        for occupancy in the project.
            (2) Project-based assistance.--The term ``project-based 
        assistance'' has the meaning given such term in section 16(c) 
        of the United States Housing Act of 1937 (42 U.S.C. 1437n(c)), 
        except that such term includes assistance under any successor 
        programs to the programs referred to in such section.
            (3) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
            (4) State.--The term ``State'' means the States of the 
        United States, the District of Columbia, the Commonwealth of 
        Puerto Rico, the Commonwealth of the Northern Mariana Islands, 
        Guam, the Virgin Islands, American Samoa, and any other 
        territory or possession of the United States.

SEC. 10. REGULATIONS.

     The Secretary may issue any regulations necessary to carry out 
this Act.

SEC. 11. AUTHORIZATION OF APPROPRIATIONS.

     There is authorized to be appropriated for grants under this title 
such sums as necessary for each of fiscal years 2003, 2004, 2005, 2006, 
and 2007.

A:
Housing Preservation Matching Grant Act of 2003 - Authorizes the Secretary of Housing and Urban Development to make matching grants to States (including the District of Columbia and U.S. commonwealths, territories, and possessions) for low-income housing preservation.Sets forth requirements for projects: (1) with Department of Housing and Urban Development-insured mortgages; (2) with section 8 assistance; or (3) purchased by the residents.
****