[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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