[Congressional Bills 107th Congress]
[From the U.S. Government Publishing Office]
[S. 1248 Introduced in Senate (IS)]
107th CONGRESS
1st Session
S. 1248
To establish a National Housing Trust Fund in the Treasury of the
United States to provide for the development of decent, safe, and
affordable housing for low-income families, and for other purposes.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 25, 2001
Mr. Kerry (for himself, Mr. Chafee, Mr. Reed, Mr. Jeffords, Mr.
Sarbanes, Mr. Leahy, Mr. Wellstone, Mr. Dayton, Mrs. Feinstein, Mr.
Levin, Mr. Schumer, Mr. Durbin, Ms. Stabenow, Mrs. Boxer, Mr. Kennedy,
Mr. Corzine, and Mr. Dodd) introduced the following bill; which was
read twice and referred to the Committee on Banking, Housing, and Urban
Affairs
_______________________________________________________________________
A BILL
To establish a National Housing Trust Fund in the Treasury of the
United States to provide for the development of decent, safe, and
affordable housing for low-income families, and for other purposes.
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, and not
supplant existing housing appropriations;
(2) to enable rental housing to be built for those families
with the greatest need in areas with the greatest opportunities
in mixed-income settings and to promote homeownership for low-
income families; and
(3) to provide for approximately 1,500,000 additional
affordable, low-income housing units over the next 10 years.
SEC. 3. DEFINITIONS.
(a) Definitions.--In this Act:
(1) Adjusted income.--The term ``adjusted income'' has the
same meaning as in section 3(b) of the United States Housing
Act of 1937 (42 U.S.C. 1437a(b)).
(2) Affordable housing.--The term ``affordable housing''
means housing for rental that bears rents not greater than the
lesser of--
(A) the existing fair market rent for comparable
units in the area, as established by the Secretary
under section 8 of the United States Housing Act of
1937 (42 U.S.C. 1437f); or
(B) 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 an adjustment for the
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 the prevailing levels of
construction costs or fair market rents, or unusually
high or low family incomes.
(3) Continued assistance rental subsidy program.--The term
``continued assistance rental subsidy program'' means a program
under which--
(A) project-based assistance is provided for not
more than 3 years to a family in an affordable housing
unit that was developed with assistance made available
under subsection (b) or (c) of section 5 in a project
that partners with a public housing agency, which
agency agrees to provide the assisted family with a
priority for the receipt of a voucher under section
8(o) of the United States Housing Act of 1937 (42
U.S.C. 1437f(o)) if the family chooses to move after an
initial year of occupancy and the public housing agency
agrees to refer eligible voucher holders to the
property when vacancies occur; and
(B) after 3 years, subject to appropriations,
continued assistance is provided under section 8(o) of
the United States Housing Act of 1937 (42 U.S.C.
1437f(o)), notwithstanding any provision to the contrary in that
section, if administered to provide families with the option of
continued assistance with tenant-based vouchers, if such a family
chooses to move after an initial year of occupancy and the public
housing agency agrees to refer eligible voucher holders to the property
when vacancies occur.
(4) Eligible activities.--The term ``eligible activities''
means activities relating to the development of 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;
and
(E) rental subsidy, in the same manner as voucher
assistance under section 8(o)(13) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(o)(13)).
(5) Eligible entity.--The term ``eligible entity'' includes
any public or private nonprofit or for-profit entity, unit of
local government, regional planning entity, and any other
entity engaged in the development of affordable housing, as
determined by the Secretary.
(6) Eligible intermediary.--The term ``eligible
intermediary'' means--
(A) a nonprofit community development corporation;
(B) a community development financial institution
(as defined in section 103 of the Community Development
Banking and Financial Institutions Act of 1994 (12
U.S.C. 4702));
(C) a State or local trust fund;
(D) any entity eligible for assistance under
section 4 of the HUD Demonstration Act of 1993 (42
U.S.C. 9816 note);
(E) a national, regional, or statewide nonprofit
organization; and
(F) any other appropriate nonprofit entity, as
determined by the Secretary.
(7) Extremely low-income families.--The term ``extremely
low-income families'' means very low-income families (as
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 findings of the Secretary that such
variations are necessary because of unusually high or low
family incomes.
(8) Low-income families.--The term ``low-income families''
has the same meaning as in section 3(b) of the United States
Housing Act of 1937 (42 U.S.C. 1437a(b)).
(9) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(10) State.--The term ``State'' has the same meaning as in
section 3(b) of the United States Housing Act of 1937 (42
U.S.C. 1437a(b)).
SEC. 4. 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'' (referred to in this Act as
the ``Trust Fund'') for the purpose of promoting the development of
affordable housing.
(b) Deposits to the Trust Fund.--For fiscal year 2002, and each
fiscal year thereafter, there is appropriated to the Trust Fund an
amount equal to the sum of--
(1) any revenue generated by the Mutual Mortgage Insurance
Fund of the Federal Housing Administration in excess of the
amount necessary for the Mutual Mortgage Insurance Fund to
maintain a capital ratio of 3 percent for the preceding fiscal
year; and
(2) any revenue generated 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 for the preceding fiscal year, as determined by the
Secretary.
(c) Expenditures From the Trust Fund.--For fiscal year 2002, and
each fiscal year thereafter, amounts appropriated to the Trust Fund
shall be available to the Secretary of Housing and Urban Development
for use in accordance with section 5.
SEC. 5. ADMINISTRATION OF NATIONAL AFFORDABLE HOUSING TRUST FUND.
(a) Allocation to States and Eligible Intermediaries.--For fiscal
year 2002, and each fiscal year thereafter, of the total amount made
available to the Secretary from the Trust Fund under section 4(c), the
Secretary shall allocate--
(1) 75 percent to award grants to States in accordance with
subsection (b) of this section; and
(2) 25 percent to award grants to eligible intermediaries
in accordance with subsection (c) of this section.
(b) Grants to States.--
(1) In general.--Subject to paragraph (2) of this
subsection, from the amount made available for each fiscal year
under subsection (a)(1), the Secretary shall award grants to
States, in accordance with an allocation formula established by
the Secretary, that is based on the pro rata share of each
State of the total need among all States for an increased
supply of affordable housing, as determined on the basis of--
(A) the number and percentage of families in the
State that live in substandard housing;
(B) the number and percentage of families in the
State that pay more than 50 percent of their annual
income for housing costs;
(C) the number and percentage of persons living at
or below the poverty level in the State;
(D) the cost of developing or carrying out
substantial rehabilitation of housing in the State;
(E) the age of the multifamily housing stock in the
State; and
(F) such other factors as the Secretary determines
to be appropriate.
(2) Grant amount.--
(A) In general.--The amount of a grant award to a
State under this subsection shall be equal to the
lesser of--
(i) 4 times the amount of assistance
provided by the State from non-Federal sources;
and
(ii) the allocation determined in
accordance with paragraph (1).
(B) Non-federal sources.--For purposes of this
section, non-Federal sources shall include--
(i) 50 percent of the funds allocable to
tax credits allocated under section 42 of the
Internal Revenue Code of 1986;
(ii) 50 percent of the revenue from
mortgage revenue bonds issued under section 143
of the Internal Revenue Code of 1986;
(iii) 50 percent of the proceeds from the
sale of tax exempt bonds;
(iv) funds provided under part A of title
IV of the Social Security Act (42 U.S.C. 601 et
seq.); and
(v) such other sources as the Secretary
determines to be appropriate.
(3) Award of state allocation to certain entities.--
(A) In general.--If the amount provided by a State
from non-Federal sources is less than 25 percent of the
amount that would be awarded to the State under this
subsection based on the allocation formula described
in paragraph (1), not later than 60 days after the date on which the
Secretary determines that the State is not eligible for the full
allocation determined under paragraph (1), the Secretary shall issue a
notice regarding the availability of the funds for which the State is
ineligible.
(B) Applications.--Not later than 9 months after
the date of publication of a notice of funding
availability under subparagraph (A), a nonprofit or
public entity (or a consortium thereof, which may
include units of local government working together on a
regional basis) may submit to the Secretary an
application for the available assistance or a portion
of the available assistance, which application shall
include--
(i) a certification that the applicant will
provide assistance in an amount equal to 25
percent of the amount of assistance made
available to the applicant under this
paragraph; and
(ii) an allocation plan that meets the
requirements of paragraph (4)(B) for use or
distribution in the State of any assistance
made available to the applicant under this
paragraph and the assistance provided by the
applicant for purposes of clause (i).
(C) Award of assistance.--The Secretary shall award
the amount that is not awarded to a State by operation
of paragraph (2) to 1 or more applicants that meet the
requirements of subparagraph (B) of this paragraph and
that are selected by the Secretary based on selection
criteria, which shall be established by the Secretary
by regulation.
(4) Distribution to eligible entities.--
(A) In general.--Of the amount that a State
receives under a grant award under this subsection and
the assistance provided by the State from non-Federal
sources for purposes of paragraph (2)(A) to eligible
entities for the purpose of assisting those entities in
carrying out eligible activities in the State, each
State shall distribute--
(i) not less than 75 percent to eligible
entities for eligible activities relating to
the development of affordable housing for
rental by extremely low-income families in the
State; and
(ii) any amount remaining after a
distribution under clause (i) to eligible
entities for eligible activities in a census
tract described in subsection (c)(3)(B)(ii)(II)
relating to the development of affordable
housing for rental by low-income families in
the State, or for homeownership assistance for
low-income families in the State.
(B) Allocation plan.--Each State shall have, after
giving notice to the public, an opportunity for public
comment and consideration of public comments received,
and shall establish an allocation plan for the
distribution of assistance under this paragraph, which
shall be submitted to the Secretary and shall be made
available to the public by the State, and which shall
include--
(i) application requirements for eligible
entities seeking to receive assistance under
this paragraph, including a requirement that
each application include--
(I) a certification by the
applicant that any housing developed
with assistance under this paragraph
will remain affordable for extremely
low-income families or low-income
families, as applicable, for not less
than 40 years;
(II) a certification by the
applicant that the tenant contribution
towards rent for a family residing in a
unit developed with assistance under
this paragraph will not exceed 30
percent of the adjusted income of that
family; and
(III) a certification by the
applicant that the owner of a project
in which any housing developed with
assistance under this paragraph is
located will make a percentage of units
in the project available to families
assisted under the voucher program
under section 8(o) of the United States
Housing Act of 1937 (42 U.S.C.
1437f(o)), either by means of a
contract with a public housing agency
under paragraph (13) of that section or
on the same basis as other families
eligible for the housing (except that
only the expected share of rent of the
voucher holder shall be considered, and
the screening criteria of the owner
shall not have a disparate impact on
the voucher holder), which percentage
shall not be less than the percentage
of the total cost of developing or
rehabilitating the project that is
funded with assistance under this
paragraph, or 25 percent of the total
units in the project, whichever is
lower; and
(ii) factors for consideration in selecting
among applicants that meet the application
requirements, which shall give preference to
applicants based on--
(I) the amount of assistance for
the eligible activities leveraged by
the applicant from private and other
non-Federal sources, 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 in which the housing to
be developed with assistance under this
paragraph is located;
(II) the extent of local assistance
that will be provided in carrying out
the eligible activities, including--
(aa) financial assistance;
and
(bb) the extent to which
the applicant has worked with
the unit of local government in
which the housing will be
located to address issues of
siting and exclusionary zoning
or other policies that are
barriers to affordable housing;
(III) the degree to which the
development in which the housing will
be located is mixed-income;
(IV) whether the housing will be
located in a census tract in which the
poverty rate is less than 20 percent;
(V) whether the housing will be
located in a community undergoing
revitalization;
(VI) the accessibility of jobs,
including lower skilled jobs, to the
project;
(VII) the extent to which the
applicant demonstrates the ability to
maintain units as affordable for
extremely low-income or low-income
families, as applicable, through the
use of assistance made available under
this paragraph, 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; and
(VIII) whether the development will
house families that need not fewer than
3 bedrooms or provide accessible units
for the disabled, unless the allocation
plan indicates that the State does not
have a significant need for those types
of units.
(C) Forms of assistance.--
(i) In general.--Assistance distributed
under this paragraph may be in the form of
capital grants, non-interest bearing or low-
interest loans or advances, deferred payment
loans, guarantees, and any other form of
assistance approved by the Secretary.
(ii) Repayments.--If a State awards
assistance under this paragraph in the 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 described in subparagraph (B) in the
following fiscal year.
(D) Coordination with other assistance.--In
distributing assistance under this paragraph, each
State shall, to the maximum extent practicable,
coordinate the distribution with the provision of other
affordable housing assistance by the State, including--
(i) housing credit dollar amounts allocated
by the State under section 42(h) of the
Internal Revenue Code of 1986;
(ii) assistance made available under the
HOME Investment Partnerships Act or the
community development block grant program; and
(iii) private activity bonds.
(c) National Competition.--
(1) In general.--From the amount made available for each
fiscal year under subsection (a)(2), the Secretary shall award
grants on a competitive basis to eligible intermediaries, which
shall be used in accordance with paragraph (3) of this
subsection.
(2) Application requirements and selection criteria.--The
Secretary, by regulation, shall establish application
requirements and selection criteria for the award of
competitive grants to eligible intermediaries under this
subsection, which criteria shall include--
(A) the ability of the eligible intermediary to
meet the housing needs of low-income families on a
national or regional scope;
(B) the capacity of the eligible intermediary to
use the grant award in accordance with paragraph (3),
based on the past performance and management of the
applicant; and
(C) the extent to which the eligible intermediary
has leveraged funding from private and other non-
Federal sources for the eligible activities.
(3) Use of grant award.--
(A) In general.--Except as provided in subparagraph
(B), each eligible intermediary that receives a grant
award under this subsection shall ensure that, of the
amount made available under the grant--
(i) 75 percent shall be used for eligible
activities relating to the development of
affordable housing for rental by extremely low-
income families; and
(ii) 25 percent shall be used for eligible
activities relating to the development of
affordable housing for rental by low-income
families, or for homeownership assistance for
low-income families.
(B) Exception.--
(i) In general.--If the amount made
available under this subsection is used for a
project described in clause (ii), subject to
the requirements of subparagraph (A)(i), an
eligible intermediary may use the grant amount
for eligible activities relating to the
development of housing for rental by families
whose incomes are less than 60 percent of the
area median income, and for homeownership
activities for families whose incomes are less
than 80 percent of the area median income.
(ii) Project contributing to a concerted
community revitalization plan.--A project is
described in this clause if--
(I) it is located in a community
undergoing concerted revitalization and
is contributing to a community
revitalization plan; and
(II) it is located in a census
tract in which--
(aa) the median household
income is less than 60 percent
of the area median income; or
(bb) the rate of poverty is
greater than 20 percent.
(C) Plan of use.--Each eligible intermediary that
receives a grant award under this subsection shall
establish a plan for the use or distribution of the
amount made available under the grant, which shall be
submitted to the Secretary, and which shall include
information relating to the manner in which the
eligible intermediary will either use or distribute
that amount, including--
(i) a certification that assistance made
available under this subsection will be used to
supplement assistance leveraged from private
and other non-Federal sources, 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 in
which the housing to be developed is located;
(ii) a certification that local assistance
will be provided in carrying out the eligible
activities, which may include--
(I) financial assistance; and
(II) a good faith effort to work
with the unit of local government in
which the housing will be located to
address issues of siting and
exclusionary zoning or other policies
that are barriers to affordable
housing;
(iii) a certification that any housing
developed with assistance under this subsection
will remain affordable for extremely low-income
families or low-income families, as applicable,
for not less than 40 years;
(iv) a certification that any housing
developed by the applicant with assistance
under this subsection will be located--
(I) in a mixed-income development
in a census tract having a poverty rate
of not more than 20 percent, and near
employment and other opportunities for
low-income families; or
(II) in a community undergoing
revitalization;
(v) a certification that the tenant
contribution towards rent for a family residing
in a unit developed with assistance under this
paragraph will not exceed 30 percent of the
adjusted income of that family; and
(vi) a certification by the applicant that
the owner of a project in which any housing
developed with assistance under this subsection
is located will make a percentage of units in
the project available to families assisted
under the voucher program under section 8(o) of
the United States Housing Act of 1937 (42
U.S.C. 1437f(o)), either by means of a
contract with a public housing agency under paragraph (13) of that
section or on the same basis as other families eligible for the housing
(except that only the expected share of rent of the voucher holder
shall be considered, and the screening criteria of the owner shall not
have a disparate impact on the voucher holder), which percentage shall
not be less than the percentage of the total cost of developing or
rehabilitating the project that is funded with assistance under this
subsection, or 25 percent of the total units in the project, whichever
is lower.
(D) Forms of assistance.--
(i) In general.--An eligible intermediary
may distribute the amount made available under
a grant under this subsection in the form of
capital grants, non-interest bearing or low-
interest loans or advances, deferred payment
loans, guarantees, and other forms of
assistance.
(ii) Repayments.--If an eligible
intermediary awards assistance under this
subsection in the form of a loan or other
mechanism by which funds are later repaid to
the eligible intermediary, any repayments
received by the eligible intermediary shall be
distributed by the eligible intermediary in
accordance with the plan of use described in
subparagraph (C) in the following fiscal year.
(d) Treatment Under the Internal Revenue Code.--
(1) In general.--Assistance provided under this Act with
respect to any building shall not be taken into account under
section 42(i)(2)(D) of the Internal Revenue Code of 1986, if 40
percent or more of the residential units in the building are
occupied by individuals whose income is 50 percent or less of
the area median gross income. Section 42(d)(5)(C) of that Code
shall not apply to any building to which the preceding sentence
applies.
(2) Special rule for certain high-cost housing areas.--In
the case of a building located in a city described in section
142(d)(6) of the Internal Revenue Code of 1986, paragraph (1)
shall be applied by substituting ``25 percent'' for ``40
percent''.
SEC. 6. 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, including requirements relating to
the reporting and collection of information necessary to enforce the
provisions of this Act.
SEC. 7. FEDERAL FINANCIAL ASSISTANCE.
For the purpose of applying the prohibitions against discrimination
on the basis of age under the Age Discrimination Act of 1975 (42 U.S.C.
6101 et seq.), on the basis of disability under section 504 of the
Rehabilitation Act of 1973 (29 U.S.C. 794), on the basis of sex under
title IX of the Education Amendments of 1972 (20 U.S.C. 1681 et seq.),
or on the basis of race, color, or national origin under title VI of
the Civil Rights Act of 1964 (42 U.S.C. 2000d et seq.), programs and
activities funded or otherwise financially assisted in whole or in part
under this Act are considered to be programs and activities receiving
Federal financial assistance, and education programs and activities
receiving Federal financial assistance.
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