[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2349 Introduced in House (IH)]







107th CONGRESS
  1st Session
                                H. R. 2349

To establish the National Affordable Housing Trust Fund in the Treasury 
 of the United States to provide for the development, rehabilitation, 
and preservation of decent, safe, and affordable housing for low-income 
                               families.


_______________________________________________________________________


                    IN THE HOUSE OF REPRESENTATIVES

                             June 27, 2001

Mr. Sanders (for himself, Ms. Lee, Mr. McHugh, Mr. Rush, Mrs. Clayton, 
Ms. McKinney, Mr. Israel, Mr. Filner, Mrs. Meek of Florida, Mr. Kennedy 
   of Rhode Island, Ms. Schakowsky, Mr. Thompson of Mississippi, Mr. 
Engel, Mr. Coyne, Mr. Conyers, Mr. Owens, Mr. Schiff, Mr. Capuano, Mr. 
 Frost, Mr. Stark, Ms. Carson of Indiana, Mr. Delahunt, Mr. Kucinich, 
  Mr. Cummings, Mr. Clay, Ms. Velazquez, Ms. Rivers, Ms. Pelosi, Mr. 
 Blumenauer, Mr. McDermott, Mr. Baldacci, Ms. McCollum, Mr. Larsen of 
 Washington, Ms. McCarthy of Missouri, Mr. Frank, Mrs. Jones of Ohio, 
   Mr. Hastings of Florida, Ms. Waters, Ms. Eddie Bernice Johnson of 
Texas, Mr. Brady of Pennsylvania, Ms. Jackson-Lee of Texas, Mr. Allen, 
     Mr. Gutierrez, Mr. Davis of Illinois, Mr. Payne, Mr. Farr of 
 California, and Mr. Nadler) introduced the following bill; which was 
            referred to the Committee on Financial Services

_______________________________________________________________________

                                 A BILL


 
To establish the National Affordable Housing Trust Fund in the Treasury 
 of the United States to provide for the development, rehabilitation, 
and preservation of 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 2001''.

SEC. 2. PURPOSES.

    The purposes of this Act 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 by 2010.

SEC. 3. NATIONAL HOUSING TRUST FUND.

    (a) Establishment of Trust Fund.--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 Act for assisting the development, rehabilitation, and 
preservation of affordable housing.
    (b) Deposits to Trust Fund.--For fiscal year 2002 and each fiscal 
year thereafter, there shall be appropriated to the Trust Fund an 
amount equal to the sum of--
            (1) any revenue generated in the previous fiscal year by 
        the Mutual Mortgage Insurance Fund established under section 
        202(a) of the National Housing Act (12 U.S.C. 1708(a)) that 
        exceeds the amount necessary for such Fund to maintain the 
        capital ratio required under section 205(f) of such Act (12 
        U.S.C. 1711(f)) at the conclusion of such preceding fiscal 
        year; and
            (2) any revenue generated in the preceding fiscal year by 
        the Government National Mortgage Association in excess of the 
        amount necessary to pay the administrative costs and expenses 
        necessary to ensure the safety and soundness of the Government 
        National Mortgage Association, as determined by the Secretary.
    (c) Expenditures From Trust Fund.--For fiscal year 2002 and each 
fiscal year thereafter, amounts 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 Act in accordance 
with section 4.

SEC. 4. ASSISTANCE FROM TRUST FUND.

    (a) Use of Trust Fund Amounts for Assistance.--The Secretary shall 
use the total amount made available under section 3(c) to the Secretary 
from the Trust Fund for such fiscal year to provide assistance under 
this Act for the States.
    (b) Affordable Housing Needs Formula.--The Secretary shall 
establish a formula to allocate assistance under this Act among the 
States based on the relative need of each State for additional 
affordable housing. The formula shall be based upon a comparison of the 
following factors for each State:
            (1) The percentage of families in the State that live in 
        substandard housing.
            (2) The percentage of families in the State that pay more 
        than 50 percent of their annual income for housing costs.
            (3) The percentage of persons in the State having an income 
        at or below the poverty line.
            (4) The cost of developing or carrying out substantial 
        rehabilitation of housing in the State.
            (5) The percentage of the population of the State that 
        resides in counties having extremely low vacancy rates.
            (6) The percentage of housing stock in the State that is 
        extremely old housing.
            (7) Any other factors that the Secretary determines to be 
        appropriate.
    (c) Formula Amount.--For fiscal year 2002 and each fiscal year 
thereafter, the Secretary shall determine the formula amount under this 
subsection for each State, which shall be the amount determined for 
each such State by applying the formula under subsection (b) to the 
total amount made available under section 3(c) to the Secretary for the 
fiscal year.
    (d) Allocation Amount for States.--The allocation under this 
subsection for a State for a fiscal year shall be determined as 
follows:
            (1) Minimum amount.--If the formula amount determined under 
        subsection (c) for the State for the fiscal year is less than 1 
        percent of the total amount made available under section 3(c) 
        for such fiscal year, the allocation for the State shall be 1 
        percent of such amount.
            (2) Formula amount.--If the formula amount determined under 
        subsection (c) for the State for the fiscal year is 1 percent 
        or more of the total amount made available under section 3(c) 
        for such fiscal year, the allocation for the State shall be the 
        formula amount for the State, except that the 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.
    (e) Grant Awards.--For fiscal year 2002 and each fiscal year 
thereafter, using the amounts made available to the Secretary from the 
Trust Fund for such fiscal year under section 3(c), the Secretary shall 
make a grant to each eligible State (as determined under section 5(d)) 
in the lesser of the following amounts:
            (1) Full allocation.--The amount of the allocation under 
        subsection (d) for the eligible State.
            (2) 4 times matching contribution.--The amount that is 
        equal to 4 times the amount of funds provided by the eligible 
        State from non-Federal sources for use only as provided in 
        subsection (f)(2).
    (f) Matching Contribution.--
            (1) Eligible amounts.--For purposes of subsection (e)(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) General state revenue.--Any other State 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 States to 
        certify to the Secretary the amount of non-Federal funds 
        provided for purposes of subsection (e)(2).
    (g) Grants for Ineligible States and States 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 state.--With respect 
                to each ineligible State, the amount of the allocation 
                for the State for such fiscal year determined under 
                subsection (d).
                    (B) Unmatched portion of allocation.--With respect 
                to any eligible State for which the amount of the grant 
                assistance for such fiscal year is determined under 
                subsection (e)(2), the amount by which the allocation 
                determined under subsection (d) for the State for the 
                fiscal year exceeds the grant assistance for the State 
                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 (d).
            (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 5(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. 5. USE OF ASSISTANCE BY RECIPIENTS.

    (a) Distribution to Eligible Entities.--Each State that receives a 
grant under this Act 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 State, as follows:
            (1) Use for rental housing for extremely low-income 
        families.--75 percent of such amounts shall be distributed for 
        use only for eligible activities relating to affordable housing 
        that is available for rental by extremely low-income families 
        in the State.
            (2) Use for rental housing or homeownership for low-income 
        families.--25 percent of such amounts shall be distributed for 
        use only for eligible activities relating to affordable housing 
        that is available for rental by low-income families in the 
        State, or for homeownership assistance for low-income families 
        in the State.
    (b) Operating Assistance for Nonprofit Housing Development 
Organizations.--A State that receives a grant under this Act 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 States.--With respect to a fiscal year, a State shall 
be an eligible State for purposes of this Act for such fiscal year only 
if the State 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 for a fiscal year, 
        for the distribution of grant amounts provided to the State 
        under this Act for such fiscal year.
            (2) Establishment.--In establishing an allocation plan, the 
        State 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 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 Act, 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 6(1)(A) (relating to 
                                rents charged);
                                    (II) section 6(1)(B) (relating to 
                                tenant rent contribution);
                                    (III) section 6(1)(C) (relating to 
                                availability of units for voucher 
                                holders); and
                                    (IV) section 6(1)(D) (relating to 
                                use as affordable housing for 40 
                                years).
                    (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 Act, 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 Act, 
                        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) whether the applicant has provided 
                        that--
                                    (I) 75 percent of the grant amounts 
                                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 or in 
                                communities undergoing revitalization; 
                                and
                                    (II) 25 percent of the grant 
                                amounts will be used for eligible 
                                activities relating to housing that is 
                                located in census tracts in which the 
                                number of families having incomes less 
                                than the poverty line is greater than 
                                20 percent and is not located in a 
                                community undergoing revitalization; 
                                and
                            (ix) whether the applicant has provided 
                        that--
                                    (I) not less than 45 percent of the 
                                grant amounts will be used for eligible 
                                activities relating to housing that is 
                                affordable to families having incomes 
                                less than 30 percent of the greater of 
                                (aa) the median income for the area in 
                                which the housing is located, or (bb) 
                                the median income for the State in 
                                which the housing is located;
                                    (II) not less than 30 percent of 
                                the grant amounts will be used for 
                                eligible activities relating to housing 
                                that is affordable to families having 
                                incomes not exceeding the amount earned 
                                by a family having one individual (or 
                                1.5 individuals in the case of a family 
                                consisting of 3 or more individuals), 
                                who is employed on a full-time basis in 
                                a position paying the higher of (aa) 
                                the Federal minimum wage under section 
                                6(a)(1) of the Fair Labor Standards Act 
                                of 1938 (29 U.S.C. 206(a)(1)), or (bb) 
                                the minimum wage under State law of the 
                                State in which the housing is located; 
                                and
                                    (III) not more than 25 percent of 
                                the grant amounts will be used for 
                                eligible activities relating to housing 
                                for families having incomes that (aa) 
                                are greater than the incomes referred 
                                to in subclauses (I) and (II) of this 
                                clause, but (bb) do not exceed 80 
                                percent of the median income for the 
                                area in which the housing is located.
            (4) Consolidated plan.--The Secretary shall provide that a 
        State may comply with the requirements under this subsection 
        for submission of a 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 a State awards assistance under this 
        section inthe form of a loan or other mechanism by which funds 
        are later repaid to the State, any repayments received by the 
        State shall be distributed by the State in accordance with the 
        allocation plan under subsection (e) for the State for the 
        fiscal year in which such repayments are made.
    (g) Coordination With Other Assistance.--In distributing assistance 
pursuant to this section, each State shall, to the maximum extent 
practicable, coordinate such distribution with the provision of other 
affordable housing assistance by the State, including--
            (1) 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.); 
        and
            (3) private activity bonds.
    (h) Administration of State Program By Subrecipient.--At the 
discretion of the State, a State may select an eligible subrecipient to 
carry out all or a portion of the State's responsibilities under this 
Act, in accordance with this section.

SEC. 6. DEFINITIONS.

    For purposes of this Act, 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; 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 Act; 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) Duration of use.--The dwelling unit will 
                continue to be subject to the requirements under this 
                paragraph for not less than 40 years.
            (2) Continued assistance rental subsidy program.--The term 
        ``continued assistance rental subsidy program'' means a program 
        that--
                    (A) provides project-based rental assistance, for 
                not more than 3 years, on behalf of a family who 
                resides in a dwelling unit that complies with the 
                requirements under subparagraphs (A) and (B) of 
                paragraph (1);
                    (B) is administered--
                            (i) by the public housing agency within 
                        whose jurisdiction the affordable housing is 
                        located (or if no such agency exists, the 
                        agency whose jurisdiction is closest to such 
                        unit); and
                            (ii) in accordance with section 8(o) of the 
                        United States Housing Act of 1937 (42 U.S.C. 
                        1437f(o)); and
                    (C) provides that, upon the expiration of the 
                period that the family receives rental assistance under 
                the program pursuant to subparagraph (A) of this Act, 
                project-based rental assistance under section 8(o)(13) 
                of the United States Housing Act of 1937 (42 U.S.C. 
                1437f(o)(13)) shall be provided on behalf of the family 
                for rental of such dwelling unit, notwithstanding any 
                provision to the contrary in such section 8(o).
            (3) Eligible activities.--The term ``eligible activities'' 
        means activities relating to the providing affordable housing, 
        including--
                    (A) the construction of new housing;
                    (B) the acquisition of real property;
                    (C) site preparation and improvement, including 
                demolition;
                    (D) substantial rehabilitation of existing housing;
                    (E) the provision of rental assistance under a 
                continued assistance rental subsidy program; 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.
            (4) 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.
            (5) 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 housing 
        trust fund, and any other intermediary selected by a State to 
        administer all or a portion of the State's responsibilities 
        under this Act. 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.
            (6) Extremely low-income families.--The term ``extremely 
        low-income families'' means 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 
        median family income for the area, as determined by the 
        Secretary with adjustments for smaller and larger families, 
        except that the Secretary may establish income ceilings higher 
        or lower than 30 percent of the median for the area on the 
        basis of the Secretary's findings that such variations are 
        necessary because of unusually high or low family incomes.
            (7) Extremely low vacancy rate.--The term ``extremely low 
        vacancy rate'' means a housing or rental vacancy rate of 2 
        percent or less.
            (8) Extremely old housing.--The term ``extremely old 
        housing'' means housing that is 45 years old or older.
            (9) Ineligible state.--The term ``ineligible State'' means, 
        with respect to a fiscal year, a State that has not submitted 
        to the Secretary an allocation plan meeting the requirements of 
        section 5(e).
            (10) Low-income families.--The term ``low-income families'' 
        has the meaning given such term in section 3(b) of the United 
        States Housing Act of 1937 (42 U.S.C. 1437a(b)).
            (11) 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.
            (12) Secretary.--The term ``Secretary'' means the Secretary 
        of Housing and Urban Development.
            (13) 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)).
            (14) Trust fund.--The term ``Trust Fund'' means the 
        National Affordable Housing Trust Fund established under 
        section 3.

SEC. 7. AUTHORIZATION OF APPROPRIATIONS FOR SECTION 8 PROJECT-BASED 
              ASSISTANCE UNDER CONTINUED ASSISTANCE RENTAL SUBSIDY 
              PROGRAMS.

    There are authorized to be appropriated, for 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 continued assistance 
rental subsidy programs pursuant to section 6(2)(C) of this Act, such 
sums as may be necessary for each fiscal year to provide such rental 
assistance on behalf of each family whose assistance is terminated 
pursuant to section 6(2)(A) of this Act.

SEC. 8. REGULATIONS.

    Not later than 6 months after the date of enactment of this Act, 
the Secretary of Housing and Urban Development shall promulgate 
regulations to carry out this Act.
                                 <all>