[Congressional Bills 108th Congress]
[From the U.S. Government Publishing Office]
[H.R. 1102 Introduced in House (IH)]
108th CONGRESS
1st Session
H. R. 1102
To establish the National Affordable Housing Trust Fund in the Treasury
of the United States to provide for the development, rehabilitation,
and preservation of decent, safe, and affordable housing for low-income
families.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
March 5, 2003
Mr. Sanders (for himself, Mr. Simmons, Ms. Lee, Mr. Shays, Ms. Waters,
Mr. Greenwood, Mr. Hoyer, Mr. McHugh, Mr. Israel, Mr. Quinn, Mr. Smith
of Washington, Mr. Clay, Mr. Weiner, Mr. Grijalva, Mr. Davis of
Alabama, Mr. Lynch, Mrs. Jones of Ohio, Mr. Oberstar, Ms. Woolsey, Mr.
Crowley, Mr. Inslee, Ms. Baldwin, Mrs. Christensen, Mr. Moran of
Virginia, Mr. Wynn, Mrs. Maloney, Mr. Owens, Mr. Kleczka, Mr. Bishop of
New York, Mr. Holt, Mr. Davis of Illinois, Mr. George Miller of
California, Ms. Schakowsky, Mr. Evans, Mr. Acevedo-Vila, Ms. Kaptur,
Mr. Ford, Ms. DeLauro, Mr. Hinchey, Mr. Honda, Mr. Gutierrez, Ms.
Carson of Indiana, Mr. Holden, Mr. Case, Mr. Doyle, Mr. Wexler, Mr.
Gordon, Mr. Payne, Mr. Abercrombie, Mr. McGovern, Mr. Tierney, Mr.
Matsui, Mr. Conyers, Mr. Kildee, Mr. McNulty, Mr. Farr, Ms. Corrine
Brown of Florida, Mr. Langevin, Mr. Hall, Mr. Olver, Ms. Kilpatrick,
Mr. Nadler, Mr. Engel, Mr. Capuano, Ms. Velazquez, Mr. Blumenauer, Mr.
Serrano, Mr. Towns, Mr. Strickland, Ms. Lofgren, Mr. Pallone, Mr.
Moore, Mr. Rangel, Mr. Delahunt, Mr. Cummings, Mr. Cooper, Mr.
Hinojosa, Mr. Kind, Ms. Millender-McDonald, Mr. Boucher, Mrs. Davis of
California, Mr. McDermott, Mr. Menendez, Mr. Doggett, Ms. Jackson-Lee
of Texas, Mr. Rush, Ms. Watson, Mr. Larsen of Washington, Ms.
Slaughter, Mr. DeFazio, Mr. Snyder, Mr. Jefferson, Mr. Lewis of
Georgia, Mr. Fattah, Mr. Frost, Mr. Brown of Ohio, Mrs. McCarthy of New
York, Mr. Spratt, Mr. Baca, Mr. Becerra, Mr. Meeks of New York, Ms.
McCarthy of Missouri, Mr. Reyes, Mr. Allen, Mr. Schiff, Mr. Rodriguez,
Mr. Emanuel, Ms. Harman, Mr. Larson of Connecticut, Ms. Linda T.
Sanchez of California, Mr. Dingell, Ms. Norton, Mr. Lantos, Mr.
Michaud, Ms. Eshoo, Mrs. Lowey, Ms. Solis, Ms. DeGette, Mr. Kucinich,
Mr. Pascrell, Mr. Udall of New Mexico, Ms. McCollum, Mr. Brady of
Pennsylvania, Mr. Bell, Mr. Andrews, Mr. Kennedy of Rhode Island, Mr.
Hoeffel, Mr. Ballance, Mr. Price of North Carolina, Mr. Lampson, Mr.
Waxman, Mr. Filner, Mrs. Capps, Mr. Ortiz, Mr. Stark, Mr. Costello, Mr.
Watt, Mr. Thompson of California, Mr. Meek of Florida, Ms. Bordallo,
Ms. Eddie Bernice Johnson of Texas, Mr. Thompson of Mississippi, Mr.
Jackson of Illinois, Mr. Clyburn, Mr. Green of Texas, Mr. Meehan, Mr.
Ryan of Ohio, Mr. Van Hollen, Ms. Roybal-Allard, Mr. Faleomavaega, Mr.
Hill, Mr. McIntyre, Mr. Davis of Tennessee, Mr. Rahall, Mr. Ross, Mr.
Miller of North Carolina, Mr. Boswell, Mr. Udall of Colorado, Mr.
Dicks, Mr. Bishop of Georgia, Mr. Rothman, and Mr. Berman) introduced
the following bill; which was referred to the Committee on Financial
Services
_______________________________________________________________________
A BILL
To establish the National Affordable Housing Trust Fund in the Treasury
of the United States to provide for the development, rehabilitation,
and preservation of decent, safe, and affordable housing for low-income
families.
Be it enacted by the Senate and House of Representatives 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 2003''.
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 fill the growing gap in the national ability to
build affordable housing by using profits generated by Federal
housing programs to fund additional housing 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 economic opportunities;
``(3) to promote homeownership for low-income families; and
``(4) to produce, rehabilitate, and preserve at least
1,500,000 affordable dwelling units over the next decade.
``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, which shall be available as provided in this
subtitle for assisting the development, rehabilitation, and
preservation of affordable housing.
``(b) Deposits to Trust Fund.--For fiscal year 2004 and each fiscal
year thereafter, there shall be appropriated to the Trust Fund an
amount equal to the sum of--
``(1) the amount by which the balance in the Mutual
Mortgage Insurance Fund established under section 202(a) of the
National Housing Act (12 U.S.C. 1708(a)), at the conclusion of
the preceding fiscal year, exceeds the amount necessary for
such Fund to maintain the capital ratio required under section
205(f) of such Act (12 U.S.C. 1711(f)); and
``(2) the amount by which any amounts collected or received
by the Government National Mortgage Association during the
preceding fiscal year exceeds the amount necessary to pay the
administrative costs and expenses necessary to ensure the
safety and soundness of the Government National Mortgage
Association, as determined by the Secretary.
``(c) Expenditures From Trust Fund.--For fiscal year 2004 and each
fiscal year thereafter, amounts appropriated to the Trust Fund for each
such fiscal year shall be available to the Secretary of Housing and
Urban Development for providing assistance under this subtitle.
``SEC. 293. ALLOCATIONS FOR STATES AND PARTICIPATING LOCAL
JURISDICTIONS.
``(a) In General.--The Secretary shall use the total amount made
available under section 292(c) to the Secretary from the Trust Fund for
such fiscal year to provide assistance under this subtitle for the
States and participating local jurisdictions. Of such total amount, the
Secretary shall allocate 40 percent for States for use under section
294 and 60 percent for participating local jurisdictions for use under
section 294.
``(b) Consortia as Participating Jurisdictions.--A consortium of
geographically contiguous units of general local government shall be
deemed to be a participating local jurisdiction for the purposes of
this section if the Secretary determines that the consortium has
sufficient authority and administrative capability to carry out the
purposes of this subtitle on behalf of its member jurisdictions.
``SEC. 294. ASSISTANCE FROM TRUST FUND.
``(a) Affordable Housing Needs Formula.--The Secretary shall
establish a formula to allocate assistance under this subtitle among
eligible recipients based on the relative need of the eligible
recipient, among other eligible recipients that are States or
participating local jurisdictions, as appropriate, to increase the
supply of decent quality affordable housing. The formula shall be based
upon a comparison of the following factors for each eligible recipient:
``(1) The percentage of families in the jurisdiction of the
eligible recipient that live in substandard housing.
``(2) The percentage of families in the jurisdiction of the
eligible recipient that pay more than 50 percent of their
annual income for housing costs.
``(3) The percentage of persons in the jurisdiction of the
eligible recipient having an income at or below the poverty
line.
``(4) The cost of developing or carrying out rehabilitation
of housing in the jurisdiction of the eligible recipient.
``(5) The percentage of the population of the eligible
recipient that resides in counties having extremely low vacancy
rates.
``(6) The percentage of housing stock in the jurisdiction
of the eligible recipient that is extremely old housing.
``(7) Any other factors that the Secretary determines to be
appropriate.
``(b) Formula Amount.--
``(1) In general.--For fiscal year 2004 and each fiscal
year thereafter, the Secretary shall determine the formula
amount under this subsection for each eligible recipient.
``(2) States.--The formula amount for each State shall be
the amount determined for such State by applying the formula
under subsection (a) to the total amount allocated under
section 293(a) for all States for the fiscal year.
``(3) Participating local jurisdictions.--The formula
amount for each participating local jurisdiction shall be the
amount determined for such participating local jurisdiction by
applying the formula under subsection (a) to the total amount
allocated under section 293(a) for all participating local
jurisdictions for the fiscal year.
``(c) Allocation Amount.--The allocation under this subsection for
a State or local participating jurisdiction for a fiscal year shall be
determined as follows:
``(1) States.--In the case of a State:
``(A) Minimum amount.--If the formula amount
determined under subsection (b) for the State for the
fiscal year is less than 1 percent of the total amount
made available under section 292(c) for such fiscal
year, the allocation for the State shall be 1 percent
of such amount.
``(B) Formula amount.--If the formula amount
determined under subsection (b) for the State for the
fiscal year is 1 percent or more of the total amount
made available under section 292(c) for such fiscal
year, the allocation for the State shall be the formula
amount for the State, except that the Secretary shall
reduce such formula amounts for all States whose
allocations are determined under this paragraph on a
pro rata basis by the amount necessary to account for
any increases from the formula amount for allocations
made under paragraph (1) of this subsection so that the
total of the allocations for all States is equal to the
amount of the allocation under section 293(a) for
States.
``(2) Participating local jurisdictions.--The allocation
for each eligible participating local jurisdiction shall be the
formula amount for the eligible jurisdiction determined under
subsection (b).
``(d) Grant Awards.--For fiscal year 2004 and each fiscal year
thereafter, using the amounts made available to the Secretary from the
Trust Fund for such fiscal year under section 292(c), the Secretary
shall make a grant to each eligible recipient in the lesser of the
following amounts:
``(1) Full allocation.--The amount of the allocation under
subsection (c) for the eligible recipient.
``(2) 4 times matching contribution.--Except as provided in
subsection (e)(4), the amount that is equal to 4 times the
amount of funds provided by the eligible recipient from non-
Federal sources for use only as provided in subsection (e)(2).
``(e) Matching Contribution.--
``(1) Eligible amounts.--For purposes of subsection (d)(2),
only the following amounts shall be considered amounts from
non-Federal sources:
``(A) Low-income housing tax credits.--50 percent
of funds allocable to tax credits allocated under
section 42 of the Internal Revenue Code of 1986.
``(B) Mortgage bond revenue.--50 percent of revenue
from mortgage revenue bonds issued under section 143 of
such Code.
``(C) Tax exempt bonds proceeds.--50 percent of
proceeds from the sale of tax exempt bonds.
``(D) CDBG program amounts.--50 percent of grant
amounts received under the community development block
grant program under title I of the Housing and
Community Development Act of 1974 (42 U.S.C. 5301 et
seq.).
``(E) HOME program amounts.--50 percent of funds
received under the HOME investment partnerships program
under subtitles A through F of this title.
``(F) Project-based voucher assistance.--50 percent
of funds used each year pursuant to paragraph (13) of
section 8(o) of the United States Housing Act of 1937
(42 U.S.C. 1437f(o)(13)) for the duration of the
applicable housing assistance payments contract.
``(G) Temporary assistance for needy families.--
Federal, State, and local funds provided under part A
of title IV of the Social Security Act (42 U.S.C. 601
et seq.).
``(H) Rural housing assistance.--50 percent of
amounts received under title V of the Housing Act of
1949 (42 U.S.C. 1471 et seq.).
``(I) General state revenue.--Any other State or
unit of general local government revenue that is not
derived from Federal sources, including any State tax
revenue.
``(2) Use of matching amounts.--Use of amounts as provided
in this paragraph shall be used only for--
``(A) eligible activities relating to affordable
housing; or
``(B) eligible activities relating to a project not
less than 50 percent of the dwelling units of which
qualify as affordable housing.
``(3) Certification.--The Secretary shall require eligible
recipients to certify to the Secretary the amount of funds from
non-Federal sources provided for purposes of subsection (d)(2).
``(4) Reduction of contribution requirement.--
``(A) 50 percent reduction for recipients in fiscal
distress.--If an eligible recipient certifies to the
Secretary that it is in fiscal distress, the eligible
recipient shall be treated, for purposes of subsection
(d)(2), as having provided from non-Federal sources for
use only as provided in subsection (e)(2) an amount
equal to twice the amount of such funds that the
recipient certifies to the Secretary pursuant to
paragraph (3) of this subsection.
``(B) Inapplicability of matching requirement for
recipients in severe fiscal distress.--If an eligible
recipient certifies to the Secretary that it is in
severe fiscal distress, subsection (d)(2) shall not
apply to such eligible recipient.
``(g) Grants for Ineligible Recipients and Recipients With
Insufficient Matching Contributions.--
``(1) Available amounts.--For a fiscal year, the following
amounts shall be available for grants under this subsection:
``(A) Allocation for ineligible recipient.--With
respect to each ineligible recipient, the amount of the
allocation for the State or participating local
jurisdiction for such fiscal year determined under
subsection (c).
``(B) Unmatched portion of allocation.--With
respect to any eligible recipient for which the amount
of the grant assistance for such fiscal year is
determined under subsection (d)(2), the amount by which
the allocation determined under subsection (c) for the
eligible recipient for the fiscal year exceeds the
grant assistance for the eligible recipient for the
fiscal year.
``(2) Notice.--For each fiscal year, not later than 60 days
after the date that the Secretary determines that the amounts
described in paragraph (1) shall be available for grants under
this subsection, the Secretary shall cause to be published in
the Federal Register a notice that such amounts shall be so
available.
``(3) Applications.--The Secretary shall provide for
nonprofit and public entities (and consortia thereof, which may
include units of local government working together on a
regional basis) to submit applications, during the 9-month
period beginning upon publication of a notice of funding
availability under paragraph (2), for a grant of all or a
portion of the amounts referred to in paragraph (1). Such an
application shall include--
``(A) a certification that the applicant will
provide supplemental amounts in accordance with
paragraph (5)(B)(i); and
``(B) an allocation plan described in paragraph
(5)(B)(ii).
``(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 for which such grant funds were
originally allocated under subsection (c).
``(5) Award and use of grant assistance.--
``(A) Award of grants.--Subject only to the absence
of applications meeting the requirements of paragraph
(3), upon the expiration of the period referred to in
such paragraph, the Secretary 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) Grant requirements.--Grant assistance under
this subsection shall be subject to the following
requirements:
``(i) Matching amounts.--The grantee shall
supplement any grant amounts received under
this subsection with an amount equal to 25
percent of such grant amounts.
``(ii) Use.--Grant amounts received under
this subsection shall be used in accordance
with an allocation plan that meets the
requirements of section 295(e) and provides
that any assistance provided to the applicant
under this subsection, and any supplemental
amounts provided by the applicant pursuant to
clause (i), shall be used only to carry out
eligible activities.
``SEC. 295. USE OF ASSISTANCE BY RECIPIENTS.
``(a) Distribution to Eligible Entities.--Each eligible recipient
that receives a grant under this subtitle shall distribute the grant
amounts (excluding any amounts used under subsection (b)) to eligible
entities for use by such entities only for eligible activities in the
jurisdiction of the eligible recipient, as follows:
``(1) Use for rental housing for extremely low-income
families.--Not less than 45 percent of such amounts shall be
distributed for use only for eligible activities relating to
affordable housing in the jurisdiction of the eligible
recipient that is available for rental by families (as such
term is defined in section 3(b) of the United States Housing
Act of 1937 (42 U.S.C. 1437a(b))) whose incomes do not exceed
30 percent of the greater of--
``(A) the median family income for the area in
which the housing is located, as determined by the
Secretary with adjustments for smaller and larger
families; and
``(B) the median family income for the State in
which the housing is located, as determined by the
Secretary with adjustments for smaller and larger
families.
Such rental housing shall include limited equity cooperative
housing, as such term is defined in section 143(k) of the
Internal Revenue Code of 1986 (26 U.S.C 143(k)).
``(2) Use for rental housing for minimum wage-income
families.--Not less than 30 percent of such amounts shall be
distributed for use only for eligible activities relating to
affordable housing in the jurisdiction of the eligible
recipient that is available for rental by families (as such
term is defined in section 3(b) of the United States Housing
Act of 1937 (42 U.S.C. 1437a(b))) whose incomes do not exceed
the amount earned by one individual who is employed on a full-
time basis in a position that pays the greater of--
``(A) the Federal minimum wage under section
6(a)(1) of the Fair Labor Standards Act of 1938 (29
U.S.C. 206(a)(1)); and
``(B) the minimum wage under the laws of the State
in which the housing is located.
Such rental housing shall include limited equity cooperative
housing, as such term is defined in section 143(k) of the
Internal Revenue Code of 1986 (26 U.S.C 143(k)).
``(3) Use for rental housing or homeownership assistance
for low-income families.--Not more than 25 percent of such
amounts shall be distributed for use only for eligible
activities relating to affordable housing in the jurisdiction
of the eligible recipient that is available for rental by
families (as such term is defined in section 3(b) of the United
States Housing Act of 1937 (42 U.S.C. 1437a(b))) whose incomes
do not exceed 80 percent of the greater of--
``(A) the median family income for the area in
which the housing is located, as determined by the
Secretary with adjustments for smaller and larger
families, and
``(B) the median family income for the State in
which the housing is located, as determined by the
Secretary with adjustments for smaller and larger
families,
or for homeownership assistance for such families in the
jurisdiction of the eligible recipient. Such rental housing and
homes for homeownership shall include housing of a cooperative
housing corporation, as such term is defined in section 216(b)
of the Internal Revenue Code of 1986 (26 U.S.C 216(b)).
``(b) Operating Assistance for Nonprofit Housing Development
Organizations.--An eligible entity that receives a grant under this
subtitle may use not more than 5 percent of such grant amounts to
provide assistance to nonprofit organizations involved in the
development, rehabilitation, or preservation of affordable rental
housing for payment of operating costs of such organizations. Such
nonprofit organizations shall include community housing development
organizations (as such term is defined in section 104 of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12704)), community
development financial institutions (as such term is defined in section
103 of the Community Development Banking and Financial Institutions Act
of 1994 (12 U.S.C. 4702)), community development corporations (as such
term is defined in section 31131 of the National Community Economic
Partnership Act of 1994 (42 U.S.C. 13851)), and community-based
development organizations.
``(c) Cost Limits.--The Secretary shall establish limitations on
the amount of grant amounts that may be used, on a per unit basis, for
eligible activities. Such limitations shall be the same as the per unit
cost limits established pursuant to section 212(e) of the Cranston-
Gonzalez National Affordable Housing Act (42 U.S.C. 12742(e)), as
adjusted annually, and established by number of bedrooms, market area,
and eligible activity.
``(d) Eligible Recipients.--With respect to a fiscal year, a State
or participating local jurisdiction shall be an eligible recipient for
purposes of this subtitle for such fiscal year only if the State or
participating local jurisdiction has established an allocation plan
that has been submitted to the Secretary and reviewed and approved by
the Secretary as in accordance with subsection (e). The Secretary may
disapprove an allocation plan only if the plan fails to comply with
requirements set forth in this section.
``(e) Allocation Plan.--
``(1) In general.--An allocation plan in accordance with
this subsection is a plan, established by a State or
participating local jurisdiction, as appropriate, for a fiscal
year, for the distribution of grant amounts provided to the
State or participating local jurisdiction under this subtitle
for such fiscal year that is based on priority housing needs,
as determined by the State or participating local jurisdiction.
``(2) Establishment.--In establishing an allocation plan,
the State or participating local jurisdiction shall notify the
public of the establishment of the plan, provide an opportunity
for public comments regarding the plan, consider any public
comments received, and make the completed plan available to the
public.
``(3) Contents.--An allocation plan of a State or
participating local jurisdiction shall include the following
information:
``(A) Application requirements for eligible
entities and subrecipients.--The allocation plan shall
set forth the requirements for eligible entities and
eligible subrecipients to apply to receive assistance
from grant amounts under this subtitle, including a
requirement that each such application include--
``(i) a description of the eligible
activities to be conducted using such
assistance; and
``(ii) a certification by the applicant
that any housing units assisted with such
assistance will comply with the requirements
under--
``(I) section 296(1)(A) (relating
to rents charged);
``(II) section 296(1)(B) (relating
to tenant rent contribution);
``(III) section 296(1)(C) (relating
to availability of units for voucher
holders);
``(IV) section 296(1)(D) (relating
to use as affordable housing for 50
years);
``(V) section 296(1)(E) (relating
to mixed income); and
``(VI) section 808(d) of the Fair
Housing Act (relating to the obligation
to affirmatively further fair housing).
``(B) Selection and preference criteria for
eligible entities and subrecipients.--The allocation
plan shall set forth the factors for consideration in
selecting among applicants that meet the application
requirements set forth pursuant to subparagraph (A),
which shall give preference to applicants based on--
``(i) the amount of assistance leveraged by
the applicant from private and other non-
Federal sources for carrying out the eligible
activities to be funded with assistance from
grant amounts under this subtitle, including
assistance 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 housing to be
assisted with such assistance;
``(ii) the extent of local assistance that
will be provided in carrying out the eligible
activities, including--
``(I) financial assistance;
``(II) the extent to which the
applicant has worked to address issues
of siting and exclusionary zoning or
other policies that are barriers to
affordable housing with the unit of
general local government in which the
housing to be assisted with such
assistance will be located; and
``(III) the extent to which the
applicant has worked with the unit of
general local government to reduce the
barriers to affordable housing;
``(iii) the degree to which the project in
which the affordable housing will be located
will have residents of various incomes;
``(iv) the extent of employment and other
economic opportunities for low-income families
in the area in which the housing will be
located;
``(v) the extent to which the applicant
demonstrates the ability to maintain dwelling
units as affordable housing through the use of
assistance made available under this subtitle,
assistance leveraged 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;
``(vi) the extent to which the applicant
demonstrates that the county in which the
housing is to be located is experiencing an
extremely low vacancy rate;
``(vii) the extent to which the percentage
of the housing located in such county that is
extremely old housing exceeds 35 percent;
``(viii) the extent to which the housing
assisted with the grant amounts will be
accessible to persons with disabilities;
``(ix) the extent to which the applicant
demonstrates that the affordable housing
assisted with the grant amounts will be located
in proximity to public transportation, job
opportunities, child care, and community
revitalization projects; and
``(x) the extent to which the applicant has
provided that assistance from grant amounts
made available under this subtitle will be used
for eligible activities relating to housing
located in census tracts in which the number
of families having incomes less than the poverty line is less than 20
percent.
``(4) Consolidated plan.--The Secretary shall provide that
a State or local participating jurisdiction may comply with the
requirements under this subsection for submission of an
allocation plan through the inclusion of any appropriate
information in a single consolidated submission used for
purposes of applying for other community planning and
development and housing assistance programs administered by the
Secretary.
``(f) Forms of Assistance.--
``(1) In general.--Assistance may be distributed pursuant
to this section in the form of capital grants, noninterest
bearing or low-interest loans or advances, deferred payment
loans, guarantees, and any other forms of assistance approved
by the Secretary.
``(2) Repayments.--If an eligible recipient awards
assistance under this section in the form of a loan or other
mechanism by which funds are later repaid to the eligible
recipient, any repayments received by the eligible recipient
shall be distributed by the eligible recipient in accordance
with the allocation plan under subsection (e) for the eligible
recipient for the fiscal year in which such repayments are
made.
``(g) Coordination With Other Assistance.--In distributing
assistance pursuant to this section, each eligible recipient shall, to
the maximum extent practicable, coordinate such distribution with the
provision of other Federal, State, and local housing assistance,
including--
``(1) in the case of any State, housing credit dollar
amounts allocated by the State under section 42(h) of the
Internal Revenue Code of 1986;
``(2) assistance made available under the HOME Investment
Partnerships Act (42 U.S.C. 12721 et seq.) or the community
development block grant program under title I of the Housing
and Community Development Act of 1974 (42 U.S.C. 5301 et seq.);
``(3) private activity bonds;
``(4) assistance made available under section 9 of the
United States Housing Act of 1937 (42 U.S.C. 1437g);
``(5) assistance made available under section 8(o) of the
United States Housing Act of 1937 (42 U.S.C. 1437f(o));
``(6) assistance made available under title V of the
Housing Act of 1949 (42 U.S.C. 1471 et seq.); and
``(7) any other housing assistance programs.
``(h) Effect of Assistance Under Program.--Notwithstanding any
other provision of law, the provision of assistance under this subtitle
for a project shall not reduce the amount of assistance for which such
project is otherwise eligible under section 42(h) of the Internal
Revenue Code of 1986 (26 U.S.C. 42(h)) or subtitles A through F of this
title, if the project does not exceed the cost limits established
pursuant to subsection (c) of this section.
``(i) Administration of Program by Subrecipient.--At the discretion
of the eligible recipient, an eligible recipient may select an eligible
subrecipient to carry out all or a portion of the recipient's
responsibilities under this subtitle, in accordance with this section.
``(j) Labor Standards.--Each eligible recipient receiving grant
amounts under this subtitle shall ensure that contracts for eligible
activities assisted with such amounts comply with the same requirements
under section 286 of the Cranston-Gonzalez National Affordable Housing
Act (42 U.S.C. 12836) that are applicable to contracts for construction
of affordable housing assisted under such Act.
``(k) Failure To Comply.--If the Secretary finds after reasonable
notice and opportunity for hearing that a State or participating local
jurisdiction has failed to comply substantially with any provision of
this subtitle and until the Secretary is satisfied that there is no
longer any such failure to comply, the Secretary shall have the
authority to discontinue assistance under this subtitle to the State or
participating local jurisdiction.
``SEC. 296. DEFINITIONS.
``For purposes of this subtitle, the following definitions shall
apply:
``(1) Affordable housing.--The term `affordable housing'
means a rental dwelling unit that is subject to legally binding
commitments that ensure that the dwelling unit meets all of the
following requirements:
``(A) Rents.--The dwelling unit bears a rent not
greater than the lesser of--
``(i) the existing fair market rental
established by the Secretary under section 8(c)
of the United States Housing Act of 1937 (42
U.S.C. 1437f(c)) for a dwelling unit of the
same size in the same market area, or the
applicable payment standard for assistance under section 8(o) of such
Act, if higher; and
``(ii) a rent that does not exceed 30
percent of the adjusted income of a family
whose income equals 65 percent of the median
income for the area, as determined by the
Secretary, with adjustment for number of
bedrooms in the unit, except that the Secretary
may establish income ceilings higher or lower
than 65 percent of the median for the area on
the basis of the findings of the Secretary that
such variations are necessary because of
prevailing levels of construction costs or fair
market rents, or unusually high or low family
incomes.
``(B) Tenant rent contribution.--The contribution
toward rent by the family residing in the dwelling unit
will not exceed 30 percent of the adjusted income of
such family.
``(C) Availability of units for voucher holders.--
The dwelling unit--
``(i) is located in a project within which
a percentage of units are made available only
for occupancy by families assisted under the
voucher program under section 8(o) of the
United States Housing Act of 1937 (42 U.S.C.
1437f(o)) (including project-based assistance
under section 8(o)(13)) on the same basis as
other families eligible for occupancy of the
project (except that only the voucher holder's
expected share of rent shall be considered),
which percentage shall not be less than the
percentage of the total cost of developing,
rehabilitating, or preserving the project that
is funded with assistance under this subtitle;
and
``(ii) is one of the units that is subject
to such occupancy requirements.
``(D) Non-discrimination against voucher holders.--
The dwelling unit is located in a project in which all
dwelling units are subject to enforceable restrictions
that provide that a unit may not be refused for leasing
to a holder of a voucher of eligibility under section 8
of the United States Housing Act of 1937 (42 U.S.C.
1437f) because of the status of the prospective tenant
as a holder of such voucher.
``(E) Mixed income.--
``(i) In general.--The dwelling unit is
located in a project in which not more than 50
percent of the rental units in the project that
receive assistance under this subtitle and are
not previously occupied may be rented initially
to families with incomes described in section
295(a)(1), as determined at a reasonable time
before occupancy.
``(ii) Exceptions.--Clause (i) shall not
apply in the case of a project having not more
than 25 dwelling units that is--
``(I) located in a census tract in
which the number of families having
incomes less than the poverty line is
less than 20 percent;
``(II) located in a rural area, as
such term is defined in section 520 of
the Housing Act of 1949 (42 U.S.C.
1490); or
``(III) specifically made available
only for households comprised of
elderly families or disabled families.
``(F) Duration of use.--The dwelling unit will
continue to be subject to the requirements under this
paragraph for not less than 50 years.
``(2) Eligible activities.--The term `eligible activities'
means activities relating to providing affordable housing,
including--
``(A) the construction of new housing;
``(B) the acquisition of real property;
``(C) site preparation and improvement, including
demolition;
``(D) rehabilitation of existing housing;
``(E) the provision of project-based rental
assistance for not more than 12 months for a dwelling
unit assisted with grant amounts under this subtitle;
and
``(F) providing incentives to maintain existing
housing as affordable housing and to establish or
extend any low-income affordability restrictions for
such housing, including covering capital expenditures
and operating costs.
``(3) Eligible entity.--The term `eligible entity' includes
any public or private nonprofit or for-profit entity, unit of
general local government, regional planning entity, and any
other entity engaged in the development, rehabilitation, or
preservation of affordable housing, as determined by the Secretary.
``(4) Eligible participating local jurisdiction.--The term
`eligible participating local jurisdiction' means a
participating local jurisdiction that complies with the
requirements under section 295(d).
``(5) Eligible recipient.--The term `eligible recipient'
means an eligible State or eligible participating local
jurisdiction.
``(6) Eligible State.--The term `eligible State' means a
State that complies with the requirements under section 295(d).
``(7) Eligible subrecipient.--The term `eligible
subrecipient' means a public agency or a nonprofit
organization, including a community development corporation, a
community development financial institution, a State or local
housing trust fund, and any other intermediary selected by a
State or participating local jurisdiction to administer all or
a portion of the State's or participating local jurisdiction's
responsibilities under this subtitle. The term does not include
any public agency or nonprofit organization that receives money
from the Trust Fund solely as a developer or owner of housing.
``(8) Extremely low vacancy rate.--The term `extremely low
vacancy rate' means a housing or rental vacancy rate of 2
percent or less.
``(9) Extremely old housing.--The term `extremely old
housing' means housing that is 45 years old or older.
``(10) Fiscal distress; severe fiscal distress.--The terms
`fiscal distress' and `severe fiscal distress' have the
meanings given such terms in section 220(d).
``(11) Full-time basis.--The term `full-time basis' means,
with respect to employment, on a 40-hour per week, 52-week per
year basis.
``(12) Ineligible recipient.--The term `ineligible
recipient' means, with respect to a fiscal year, a State or
participating local jurisdiction that has not submitted to the
Secretary an allocation plan meeting the requirements of
section 295(e).
``(13) Participating local jurisdiction.--The term
`participating local jurisdiction' means, with respect to a
fiscal year, any unit of general local government (as such term
is defined in section 104 of the Cranston-Gonzalez National
Affordable Housing Act (42 U.S.C. 12704) that qualifies as a
participating jurisdiction under the HOME Investment
Partnerships Act for such fiscal year.
``(14) Poverty line.--The term `poverty line' has the
meaning given such term in section 673(2) of the Omnibus Budget
Reconciliation Act of 1981, including any revision required by
such section.
``(15) Secretary.--The term `Secretary' means the Secretary
of Housing and Urban Development.
``(16) State.--The term `State' has the meaning given such
term in section 3(b) of the United States Housing Act of 1937
(42 U.S.C. 1437a(b)).
``(17) Trust fund.--The term `Trust Fund' means the
National Affordable Housing Trust Fund established under
section 292.
``SEC. 297. AUTHORIZATION OF APPROPRIATIONS FOR SECTION 8 PROJECT-BASED
ASSISTANCE.
``There are authorized to be appropriated, for project-based rental
assistance under section 8(o)(13) of the United States Housing Act of
1937 (42 U.S.C. 1437f(o)(13)) provided in connection with dwelling
units assisted under this subtitle, such sums as may be necessary for
each fiscal year to provide such rental assistance on behalf of each
family who occupied a dwelling unit assisted under this subtitle for
which the rent that otherwise may be charged exceeds 30 percent of the
family's adjusted income, as such term is defined in section 3 of the
United States Housing Act of 1937 (42 U.S.C. 1437a).
``SEC. 298. INAPPLICABILITY OF HOME PROVISIONS.
``Except as specifically provided in this subtitle, no requirement
under, or provision of, title I or subtitles A through F of this title
shall apply to assistance provided under this subtitle.
``SEC. 299. REGULATIONS.
``Not later than 6 months after the date of enactment of the
National Affordable Housing Trust Fund Act of 2003, the Secretary of
Housing and Urban Development shall promulgate regulations to carry out
this subtitle.''.
(b) Conforming Amendment.--Section 201 of the Cranston-Gonzalez
National Affordable Housing Act (42 U.S.C. 12701 note) is amended by
striking ``This title'' and inserting ``Subtitles A through F of this
title''.
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