[Congressional Record (Bound Edition), Volume 153 (2007), Part 19]
[House]
[Pages 26963-26995]
[From the U.S. Government Publishing Office, www.gpo.gov]




           NATIONAL AFFORDABLE HOUSING TRUST FUND ACT OF 2007

  The SPEAKER pro tempore. Pursuant to House Resolution 720 and rule 
XVIII, the Chair declares the House in the Committee of the Whole House 
on the state of the Union for the consideration of the bill, H.R. 2895.

                              {time}  1243


                     In the Committee of the Whole

  Accordingly, the House resolved itself into the Committee of the 
Whole House on the state of the Union for the consideration of the bill 
(H.R. 2895) to establish the National Affordable Housing Trust Fund in 
the Treasury of the United States to provide for the construction, 
rehabilitation, and preservation of decent, safe, and affordable 
housing for low-income families with Mr. Holden in the chair.
  The Clerk read the title of the bill.
  The CHAIRMAN. Pursuant to the rule, the bill is considered read the 
first time.
  The gentleman from Massachusetts (Mr. Frank) and the gentleman from 
Alabama (Mr. Bachus) each will control 30 minutes.
  The Chair recognizes the gentleman from Massachusetts.
  Mr. FRANK of Massachusetts. Mr. Chairman, I yield myself 1 minute.
  Mr. Chairman, this is an historic day. This is an important piece of 
legislation, broadly and eagerly supported by virtually every 
organization in this country seeking to expand the supply of affordable 
housing for low-income people, and also from the leading business 
groups that understand the need for an increase in the housing supply. 
So from the Low Income Housing Coalition and all the homeless groups, 
over to the National Association of Homebuilders and the National 
Association of Realtors, this is a day they have long waited for; and I 
submit the following for the Record:
                                              National Association


                                                  of Realtors,

                                  Washington, DC, October 9, 2007.
     House of Representatives,
     Washington, DC.
       Dear Representative: On behalf of the 1.3 million members 
     of the NATIONAL ASSOCIATION OF REALTORS', I urge 
     your support of H.R. 2895, the ``National Affordable Housing 
     Trust Fund Act of 2007''. The number of families facing 
     critical housing needs is significant and growing. Today, one 
     in seven U.S. households--both owners and renters--spend over 
     50% of their household income on housing. A dedicated fund to 
     produce, rehabilitate, and preserve affordable housing could 
     make great strides towards addressing this crisis.
       NAR has consistently maintained that homeownership serves 
     as a cornerstone of our democratic system of government. We 
     believe that homeownership continues to be a strong personal 
     and social priority for most Americans. Living in one's own 
     home is a measure of security and success in life. The 
     homeownership rate fell slightly during the recent housing 
     market slowdown. Despite modestly lower home prices in many 
     regions of the country, many deserving American families 
     continue to face obstacles in their quest to own a home.
       NAR has equally and forcefully maintained that rental 
     housing has an immediate and beneficial effect on the 
     prosperity of a community. Rental housing provides a range of 
     housing options that not only attract top employers but also 
     generate local taxes, fees and income that benefit local 
     economies. Sadly, the stock of affordable and available 
     rental units is declining. As a result, approximately 25% of 
     renters spend more than half of their household income on 
     housing costs. Perhaps even more sobering, there is no 
     location in the country where a household headed by a single 
     minimum-wage worker can afford a two-bedroom rental 
     apartment.
       The NATIONAL ASSOCIATION OF REALTORS' recognizes 
     that accessibility to safe, decent and affordable housing at 
     all levels must be one of our nation's highest priorities. 
     NAR strongly endorses H.R. 2895 and urges your support of 
     this important legislation.
           Sincerely,

                                                 Pat V. Combs,

                              2007 President, National Association
     of Realtors.
                                  ____

                                              National Association


                                             of Home Builders,

                                  Washington, DC, October 9, 2007.
     Hon. Nancy Pelosi,
     Speaker, House of Representatives,
     Washington, DC.
       Dear Speaker Pelosi: On behalf of the 235,000 members of 
     the National Association of Home Builders (NAHB), I am 
     writing to urge your support for H.R. 2895, the National 
     Affordable Housing Trust Fund Act of 2007, which provides 
     grants and other assistance in support of the production, 
     rehabilitation and preservation of affordable housing.
       NAHB's members are acutely aware of the significant and 
     urgent unmet housing needs throughout the country, and 
     welcome this initiative to marshal additional resources to

[[Page 26964]]

     improve housing opportunities and conditions in America's 
     communities. In conjunction with efforts to revitalize the 
     Federal Housing Administration, we believe that the National 
     Affordable Housing Trust Fund can improve housing 
     opportunities for those that need it most. As H.R. 2895 moves 
     forward in the legislative process, NAHB looks forward to 
     working with Congress to ensure that the new Affordable 
     Housing Trust Fund has income targeting requirements that 
     allow grantees and grant recipients to meet the fullest range 
     of critical housing needs.
       Again, NAHB believes this legislation is an opportunity to 
     help the increasing need for affordable housing, and urges 
     your support for H.R. 2895 when it comes to the floor this 
     week.
       Thank you for your attention to our views.
           Sincerely,
                                                Joseph M. Stanton,
                                      Senior Staff Vice President.

  Mr. Chairman, I yield such time as she may consume to the gentlewoman 
from California (Ms. Waters), the chair of the Subcommittee on Housing, 
with whom I have been very pleased to work all year in trying to 
advance the important goal of providing affordable housing for America, 
one of our greatest social and economic needs.
  Ms. WATERS. Mr. Chairman, the Chair of the Financial Services 
Committee, Chairman Frank, who just spoke, is absolutely correct. This 
is a very exciting day, a day that so many housing advocates and 
working people and poor people have been waiting for. They get a chance 
to see their government responding to one of the most critical needs in 
our society.
  Mr. Chairman, I rise in support of H.R. 2895, the Affordable Housing 
Trust Fund Act of 2007, and I sincerely thank Chairman Frank for his 
unrelenting efforts to get the Federal Government back in the 
affordable housing production business.
  I am so proud to be part of this committee, to be a cosponsor of this 
bill and to work with Chairman Frank in not only producing housing 
under this National Affordable Housing Trust Fund, but for all the 
other work that has been coming out of this committee under his 
leadership.
  The need for this bill could not be more urgent. Mr. Chairman, last 
week you joined me when I chaired a hearing in the Housing and 
Community Opportunity Subcommittee that demonstrated that when 
affordable housing is not produced, homelessness is. The stark bottom 
line that emerged from the hearing, focused narrowly on reauthorizing 
the McKinney-Vento Homeless Assistance Act of 1987, is that, 
nationwide, we haven't made demonstrable progress in reducing the 
number of households experiencing homelessness in the past 2 decades. 
While some homeless people face personal challenges that require social 
services or other support, every homeless individual and family shares 
one common need: Housing they can afford. And there simply is not 
enough of it.
  For example, there are 9 million renter households who earn less than 
30 percent of area median income, but only 6.2 million units affordable 
to them. This leaves an absolute deficit of 2.8 affordable rental 
housing units for our poorest families. This kind of math leads 
inevitably to widespread homelessness. But I want to emphasize that the 
National Housing Trust Fund addresses the affordable housing crisis as 
it affects every level of society.
  Right now, housing costs are outstripping wages for more households 
than ever before in recent memory. According to the ``Harvard 
University Study on the State of the Nation's Housing in 2007,'' 17 
million renters and homeowners are paying more than half their incomes 
in housing costs.
  Working is simply no longer a guarantee of being able to afford 
housing. In Los Angeles, for example, it takes an hourly wage of over 
$22 an hour to afford a moderately priced 2-bedroom apartment, when the 
minimum wage in California is only $7.50 an hour. Put another way, a 2-
parent family with both parents working full-time at minimum-wage jobs 
puts that family less than two-thirds of the way to being able to 
afford decent housing.
  Finally, as a recent Center for Housing Policy study ``Paycheck to 
Paycheck'' dramatically shows, many of our Nation's essential workers 
cannot afford to live in or near the communities where they work. In 
high-cost communities like Los Angeles where the median home price is 
$523,000, the income needed to afford a home is far higher than that 
earned by teachers, police, firefighters, nurses and other key 
occupations studied. The National Affordable Housing Trust Fund 
addresses this full range of housing crises, providing relief to 
overburdened renters and homeowners, while targeting funds where the 
need is greatest.
  Mr. Chairman, I want to emphasize that H.R. 2895 does so at no 
additional cost to taxpayers. It is a trust fund in the truest sense, a 
dedicated source of revenue, separate and apart from the annual 
appropriations process, reflecting the need for the Federal Government 
to make a long overdue commitment to affordable housing production.
  We have clearly demonstrated that the fund will be drawn from moneys 
from the affordable housing fund proposed as part of the GSE reform 
bill, H.R. 1427, from Federal Housing Administration savings and other 
existing revenue streams. I am prepared to debate with my colleagues on 
the other side of the aisle whether such revenues should be diverted to 
uses other than addressing the housing needs of America's working 
families and poorest, disabled individuals. I do not think there is any 
better use for them, particularly since both GSE and FHA revenues 
derive from housing activities that the Federal Government and 
government-sponsored enterprises engage in, at significant profit to 
both, I might add.
  In conclusion, Mr. Chairman, it has been 17 years since the Federal 
Government last enacted a major affordable housing production program, 
spearheaded in 1990 by, Mr. Chairman, your predecessor, Chairman 
Gonzalez. The time has long since passed to enact another one.
  I am so proud of this legislation. I am so thankful, Chairman Frank, 
for your leadership. And I am so proud and pleased to have the 
opportunity at this time in my career not only to work on the committee 
with you and to chair this subcommittee, but to be able to stand here 
today and see something about to happen that has been needed for so 
long.
  Mr. BACHUS. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, as we start this discussion or debate about this new 
program, the National Affordable Housing Trust Fund program, I think it 
is important to distinguish between what we disagree on and what we 
agree on.
  The first thing that we agree on is that Chairman Frank and the 
members of the majority have a sincere commitment to meeting the 
housing needs of low-income Americans, to make housing more affordable 
for low-income Americans, and we share that need. What we debated in 
committee, what we have debated on the floor of this House on two 
previous occasions and now, is how we meet those needs.
  What this legislation does is it creates a new National Affordable 
Housing Trust Fund. This is a new Federal program. In fact, Chairman 
Frank has said this is the largest expansion of a housing program I 
think in the last 30 years.
  Mr. Chairman, this is a multi-billion dollar program. We say that 
this is not the way to do it. If we are to address the unmet needs of 
low-income Americans for affordable housing, this is not the way to go.
  Why do we say that? Because presently there are over 30 Federal 
programs addressing affordable housing for low-income Americans. In 
addition to those 30-something programs at HUD, we have FHA and we have 
the GSEs, Fannie Mae and Freddie Mac. What this legislation proposes to 
do is not reform any of those programs. What it proposes to do is take 
money from FHA and from the GSEs, Fannie and Freddie, and transfer that 
money into a new program.
  So we end up with all the programs we presently have, which it ought 
to be obvious to everyone apparently are not working. You are talking 
about the majority of the $35 billion. And when I say ``not working,'' 
let me say this to the chairman: They are not meeting the needs, or we 
wouldn't need to create a new program.

[[Page 26965]]

  But what we are saying is if there is something wrong with the 
existing program, if there is something wrong with the $35 billion we 
are presently committing under the HUD programs, if FHA or the GSEs are 
not doing their job, why come along and create another program? And 
then if FHA and the GSEs are doing their job, why take money from FHA 
and the GSEs, particularly because at the same time we are saying to 
those programs, we want you to play a larger role in the mortgage 
crisis, the subprime mortgage crisis in America, but at the same time 
we are taking money from those programs.
  So that is what we are debating. We are debating whether or not with 
all these programs, with the large Federal role in creating low-income 
affordable housing, why it is necessary to create another large 
program. As Chairman Frank actually says, this is one of the most 
significant expansions of Federal programs for low-income Americans.
  Mr. Chairman, I yield 3 minutes to the gentlewoman from Illinois 
(Mrs. Biggert).
  Mrs. BIGGERT. I thank the gentleman.
  Mr. Chairman, I rise to oppose the creation of the National 
Affordable Housing Trust Fund. While I share Chairman Frank's goal of 
increasing the amount of available affordable housing, I do not think 
that H.R. 2895 is the right way to do it. I will make three quick 
points to explain why.
  First, let's look at how the trust fund is financed. Thanks to self-
defeating provisions in both the GSE reform and the FHA reauthorization 
bills, low- and middle-income Americans, including the elderly, are 
going to pay for it.
  How will it work? It is estimated that Fannie Mae and Freddie Mac, 
two entities that purchase or securitize almost 80 percent of American 
families' mortgages, will be taxed at more than $3 billion over a 5-
year period to pay for the trust fund. Where will they get the money? 
As publicly traded companies, accountable to their shareholders, Fannie 
Mae and Freddie Mac will inevitably pass along these new assessments to 
their customers. America's low- and middle-income homeowners will be 
footing the bill. That is not a good plan. It amounts to a mortgage tax 
on these hard-working, low- and middle-income Americans seeking to 
secure, maintain or refinance their home mortgages. In short, it is 
robbing Peter to house Paul.
  What is worse, the Congressional Budget Office has estimated that the 
FHA trust fund provision could include a $370 million surplus in 2008 
and a $2.1 billion surplus over the 2008 to 2012 period. Where does 
this come from? Well, the majority of FHA's surplus would come from 
reverse mortgage premiums that are paid for by our seniors, suggesting 
that they have been overcharged. I have supported ideas aimed at giving 
this surplus back to our seniors in the form of reduced premiums, which 
the Financial Services Committee rejected.
  I would agree with the chairman that the funds for this trust fund 
should not be used for other purposes that have nothing to do with 
housing. But here with the FHA funds, in fact, I think that the money 
should stay in FHA, period.
  Second, why are we creating yet another Federal housing program, when 
we have so many housing programs already in existence, over 100? The 
National Low Income Housing Coalition cites that nearly 600 housing 
trust funds have been created in the cities, counties and States in 
this country, generating more than $1.6 billion per year to support 
housing needs.
  Third, to the extent that the State programs fall short in some way, 
I must point to the existing federally administered program designed to 
serve the housing needs of low-income Americans, the HOME Investment 
Partnership Program. This program already has the personnel, systems 
and regulatory oversight in place to accomplish the same objective as 
the National Housing Trust Fund. Instead of creating a Federal 
bureaucracy, let's improve on the home loan program.
  Mr. FRANK of Massachusetts. Mr. Chairman, I yield myself such time as 
I may consume.
  My friend from Alabama said that there are 30 programs that this 
would duplicate. I know of one program which helps build family 
affordable housing. That is what this does. I would yield to the 
gentleman. Would he name some of the other programs?
  The question is, what are the 30 programs that help construct, not 
Fannie Mae and Freddie Mac and FHA, he said there were 30 HUD programs 
that help build affordable family housing.
  I would yield to the gentleman if he would tell me what they are.

                              {time}  1300

  Mr. BACHUS. Let me say this to the chairman.
  Mr. FRANK of Massachusetts. I'm sorry, Mr. Chairman, I take back my 
time. I yielded for a specific purpose. He has as much time as I do. I 
asked him, and he has had time to get the list from people: What is the 
list of programs that build affordable family housing? Construction.
  And I will yield.
  Mr. BACHUS. CDBG, those programs under HUD, designate money to all of 
the States, to many local governments, and to our different 
territories.
  In addition to that, you have the HOME program. You have patterned 
this bill, if you look at it----
  Mr. FRANK of Massachusetts. Mr. Chairman, I take back my time. I 
think the gentleman doesn't have 30; he doesn't have three.
  Would the gentleman please abide by the rules.
  He made a statement, and I am yielding my time. He has equal time. I 
don't think there are 30 programs. I don't think they can come up with 
them.
  The HOME program, I agree, there are reasons why this must be in 
addition to the HOME program.
  Community Development Block Grants are not supposed to be primarily a 
construction program. Mayors and city council members and others all 
over the country will be appalled to be told that they are supposed to 
put CDBG primarily in housing construction; they aren't. It is for a 
whole variety of programs. People know that.
  We do have programs to build housing for the elderly and for the 
disabled, but there is simply not a list for housing construction.
  Secondly, the gentleman from Alabama says, Why don't we fix these 
programs? Of course, the Republican Party was in control of both Houses 
of Congress and the Department of Housing and Urban Development for 6 
years. Apparently, they didn't do anything.
  He then says, Why don't we fix FHA and GSE? Well, I was surprised by 
that, Mr. Chairman. The gentleman knows that this House has, in fact, 
passed bills that do make reforms in both the FHA and the GSE. For him 
to say why don't we fix FHA and GSE when he knows we have passed bills 
to do it seems, to me, strange because we have done that.
  Here is the point. We do have the HOME program. It is subject to 
annual appropriations. And we do have local housing trust funds. It is 
the local housing trust funds that want this bill. The gentlewoman from 
Illinois mentioned the Low Income Housing Coalition. They are the major 
driver behind this bill because they understand its importance.
  We want to supplement the funds. What is the problem with the one 
program that builds affordable housing, the HOME program, there is not 
enough money. It competes with other appropriated funds.
  By the way, the argument that somehow we are being unfair to the 
elderly, in this bill, unlike what happened during the Republican rule, 
we limit the fees that can be charged to the elderly under the HOME 
equity mortgage program. We do that. They didn't. We limit what the FHA 
can charge for mortgage insurance. OMB ordered HUD to raise the fees so 
they would make even more of a profit. We said you can't do that. We 
authorized some additional activity. We have limited the fee increases, 
and we have taken some of the money from the additional activity, not 
from fee increases.
  The fact is this: The Republican Party has opposed any funding for 
affordable housing construction. They inherited the HOME program. They

[[Page 26966]]

haven't been very good to it in the appropriations process. This says 
we need to get back in the business in a major way of helping build 
affordable housing. There is no 30 programs that build affordable 
housing for low-income people. That is not what CDBG is intended to do, 
and it is not what CDBG largely does. Most of the money goes for other 
things.
  This list of 30 programs is mythical. I await its reality, but I 
don't have any high expectations.
  Mr. Chairman, I yield to the gentleman from Virginia for a colloquy.
  Mr. MORAN of Virginia. Mr. Chairman, the fact is that Americans are 
in a crisis in terms of affordable housing today. This is the most 
programmatically rational and fiscally responsible way to address that 
crisis.
  I strongly support Mr. Frank's bill, and I appreciate him offering 
this opportunity for the Congress as a whole to show that we really can 
make a positive difference in people's lives.
  I would appreciate some clarification on one aspect of the bill, 
however. Within the bill, at least 75 percent of the funds are set 
aside for families whose incomes are no more than 30 percent of the 
area median income, and at least 10 percent is for people whose income 
is more than 50 percent of the area median income. That only leaves 
about 15 percent of the trust fund available to be flexibly used by 
localities.
  I represent the Washington suburbs where housing is extraordinarily 
high, not dissimilar from the Boston suburbs that the chairman 
represents. Many of these families and governments are concerned that 
there will not be the opportunity to address the crisis that their 
middle-class families are facing in housing. In fact, there are more 
than 50,000 families in northern Virginia who are paying over 30 
percent of their income for housing but who are at about 100 percent of 
the area median income.
  What I would like to ask the chairman to do is to clarify how we can 
address that affordable housing need within this bill's parameters.
  Mr. FRANK of Massachusetts. First, there was allusion by the 
gentleman from Alabama to Fannie Mae and Freddie Mac. In fact, Fannie 
Mae and Freddie Mac in the bill we passed, which we did do some reforms 
in, we did say that they should in their secondary mortgage activity be 
supportive of people at 80 percent of median. We have given them the 
affordable housing goals, and people who understand this issue 
understand that there is a distinction, as the gentleman from Virginia 
understands. Fannie Mae and Freddie Mac have primarily and historically 
been aimed at helping people in the more moderate income range. We have 
actually lowered it to 80 percent of median. This gets to people much 
below that in general, which is why there is no overlap between Fannie 
Mae and Freddie Mac and this program.
  Secondly, to the gentleman's argument, what we want to do here is 
give as much flexibility as we can to the local communities. That is 
why, yes, we are not creating a Federal bureaucracy here. The Federal 
Government will largely be passing this money through to the State and 
local housing trust funds who can focus on the needs of their own 
community. They would have the ability, with the 15 percent, to spend 
it where they think best. If they thought it was needed for the lowest 
income people, they could do that. But if they felt, as in the 
gentleman's area, this needs to go to people at 60 percent of median, 
and ultimately when we get the fund up to 80 percent of median, they 
would have the ability to do that. So the 15 percent is within the 
discretion of the local communities.
  Mr. MORAN of Virginia. That is very helpful.
  Mr. BACHUS. Mr. Chairman, I yield 3 minutes to the gentleman from 
Texas (Mr. Hensarling).
  Mr. HENSARLING. Mr. Chairman, I thank the gentleman for yielding, and 
I rise today in favor of greater housing opportunities for working 
families. I also rise today against adding yet another new Federal 
Government housing program on top of the roughly 80-plus programs that 
HUD already administers, and I hold the list in my hand. And since it 
is called ``HUD,'' ostensibly, these programs have something to do with 
either affordable housing or urban development.
  Mr. Chairman, what we have in front of us again is another classic 
liberal let's take money away from working families, send it to 
Washington, and then somehow throw a little bit back at the people. 
Throw money at the problem.
  I might add, as the chairman brought out as a beneficial feature of 
this, that the money goes to the States. The last I looked, all but 
four or five are running a surplus. Unfortunately, there is still a 
deficit in the Nation's Capital.
  Now, I appreciate the chairman's commitment to affordable housing. I 
agree with him, there is a need for greater affordable housing. He is 
very sincere in his passion, and I respect that. But I note that he and 
other Members on that side of the aisle, unfortunately, constantly vote 
against affordable housing. The greatest determinant in how affordable 
your housing is is a paycheck. It's a paycheck, Mr. Chairman.
  And almost all the Democrats voted against the Economic Growth and 
Tax Relief Act of 2001 and the Jobs and Growth Reconciliation Act of 
2003, which created 8.2 million jobs and helped lead to one of the 
largest rates of homeownership in the entire history of our Nation.
  The next biggest determinant in the affordability of housing is once 
you have that paycheck, how much of it does Uncle Sam take? What is 
your tax bite? Yet we know, Mr. Chairman, in the budget passed by the 
Democrat majority, it contains the single largest tax increase in 
history. We are talking about an average of $3,000 per year on every 
American family when it is imposed.
  And I hear from some of these families. I hear from people like the 
Stephens family in Mesquite who wrote to me: ``Dear Congressman, I 
wanted to let you know that I am a single mom that does not receive any 
type of child support, and an increase of this amount,'' talking about 
the taxes, ``would break me. I would be at risk of losing my home with 
this type of tax increase.'' So much for making housing more 
affordable.
  Also, many of our friends on the other side of the aisle do not 
support increased opportunities for trade. They want to put tariffs on 
the Canadian lumber or the Mexican concrete which leads to homes being 
less affordable.
  Finally, there is the regulatory burden. Mr. Chairman, they almost 
all supported Davis-Bacon provisions which increases the cost of public 
housing by artificially raising wages. At almost every juncture, the 
Democrat majority is voting against affordable housing, and those are 
the facts.
  So it really comes down to a choice: Do we want more opportunity 
housing or do we want more government housing? We should support 
opportunity.
  Mr. BACHUS. Mr. Chairman, I yield to myself because I would like to 
make one statement.
  Mr. Chairman, as I said at the start of this debate, the trust fund 
will be the largest expansion in Federal housing programs in decades. 
That is what we are debating.
  Also at this time I would like to introduce, and I asked back in July 
for HUD to produce the list of programs which today promote affordable 
housing. They sent me a list, and it has actually 34 programs which in 
some way assist low-income Americans with their housing needs. That is 
not my list; that is their list.
  But let's again focus on, we have all of these programs. Do we 
rehabilitate these programs or do we shift money from one program to 
another? And if we are shifting money from one program to another, I 
don't see how this is the largest expansion of Federal housing programs 
in decades, or as the gentlewoman from California said, the most 
significant new program in over 11 years.
  Mr. Chairman, I reserve the balance of my time.
  Mr. FRANK of Massachusetts. Mr. Chairman, I yield myself such time as 
I may consume to underline an important distinction that appears to 
have

[[Page 26967]]

escaped the gentleman from Alabama: There is a difference between a 
section 8 voucher program which gives people money to pay their rent on 
a year-by-year basis and does not encourage the construction of any 
housing, there is a difference between that and a program to help 
people build affordable housing. The gentleman now has disclaimed the 
list to some extent. He says it is not his list; it was when he first 
mentioned it, it seems to me. Now it is HUD's list.
  It is a list that he very carefully reworded, the phraseology, I 
think. It is a list that assists people who are poor with housing. Yes, 
it builds shelters for the homeless. That is probably one or two of the 
programs. It gives section 8 vouchers.
  The HOME program is the only one of that list that helps build 
affordable housing. It helps build it. So the gentleman's list, and he 
doesn't want to read it, and I understand why. He mentioned Community 
Development Block Grants. No one familiar with Community Development 
Block Grants think they are primarily for housing construction. That is 
not what it does. There are programs that help build housing for the 
disabled and the elderly. But other than the HOME program, there aren't 
programs that help build affordable housing.
  Fannie Mae and Freddie Mac are now aimed at helping people at 100 
percent of median and above. We say that should be dropped to 80 
percent of median, not 100, but it doesn't help people in the lower 
income categories. There are no such programs. And so that's the answer 
to what the gentleman said.
  He keeps talking about, Well, we should fix the programs. Of course 
for 6 years with a Republican President and a Republican-led Congress, 
they didn't do much.
  There are fixes this year. The House did try last year on the FHA. We 
have repeated that. So we do improve the FHA program. We improve the 
GSE program, and we also take additional nontax dollars and make them 
available.
  Again, I await this list of programs that help the construction of 
affordable rental housing. I think I will wait a very long time.
  The only other point I make is that I regret we have limited time. I 
was sorry that the Ways and Means Committee didn't yield time to the 
gentleman from Texas (Mr. Hensarling) since he talked about trade and 
taxes, none of which have anything to do with this bill. So maybe Ways 
and Means owes us a few minutes, and when their bill comes up later, 
maybe I will come talk about housing to offset the gentleman from Texas 
talking about trade and taxes.
  I now yield 4 minutes to the gentleman from Georgia (Mr. Scott).
  Mr. SCOTT of Georgia. Chairman Frank, let me commend you for the 
excellent leadership you have provided on this issue.
  Mr. Chairman, never before in the history of this country, the United 
States of America, have we had as great a need for affordable housing 
as we need right now.

                              {time}  1315

  We have just come out of perhaps the most devastating storm and 
natural disaster in the history of our country and the greatest need in 
that area, not just in the gulf area, but rippling throughout this 
country as a result of that is affordable housing.
  And, Mr. Chairman, one in seven households now spend more than 50 
percent of their income on housing, and on any given night in America, 
across the width and breadth of this country, nearly 1 million of our 
people are homeless, including men, women, and children, and nowhere is 
it targeted to the elderly and the low income.
  So what are we doing with this affordable housing trust fund? We're 
responding to the hue and the cry of the American people, for we need 
to make sure that we have affordable housing.
  Now, yes, we have the HOME program. And there may be coming an 
amendment on here to strike what we're doing and make it a part of the 
HOME program. And the HOME program has done some good things, but it 
does not do the most important things that this country needs now, 
building and constructing new homes. The HOME program doesn't target 
that, nor does the HOME program target those in most basic need, the 
lower income and the disabled.
  Now, let me just explain for my remaining time because I want to show 
precisely and explain how this trust fund is funded. This is very 
important. We've had a lot of things said today. This is how it is 
funded.
  It's funded with moneys from the proposed GSE affordable housing 
fund, H.R. 1427, which we passed. It also funds it from the Federal 
Housing Administration, FHA, savings that result from the enactment of 
the expanding of the American homeownership program. And it does not go 
or cost any money. It's pay-as-you-go and does not add to the Federal 
deficit.
  The estimated numbers from these funding sources will result in an 
initial allocation of $800 million to $1 billion to the States and 
local communities for affordable housing funds, with a 60-40 match with 
the States and the local governments.
  Furthermore, not only will these moneys be used for construction, the 
moneys will be used for rehabilitation. They will be very diverse in 
usage, acquisition, preservation and operating assistance. These moneys 
will also be used for both rental housing and for down payments and 
costs for closing assistance for first-time homebuyers, very, very 
important considerations.
  So we're going to hear a lot from the other side, and I respect my 
friends on the Republican side, but it is us on the Democratic side 
that are clearly responding to the needs of the American people here.
  We're creating, yes, and we're expanding. Why? Because the problem 
has expanded. As I said at the outset, 1 million people every night 
homeless. We've been ratcheted from one end of this country to the 
other for displaced people from Katrina, and God knows what else is 
going to happen with the global warming and the global climate 
changing. There could be more.
  No, this is a great program. It's a program that is needed. The 
timing is right, and the American people are expecting us to respond, 
and the best way to respond to the American people is to establish this 
affordable housing trust fund.
  Mr. BACHUS. Mr. Chairman, I yield 3 minutes to the gentleman from 
North Carolina (Mr. McHenry).
  Mr. McHENRY. I thank my colleague for yielding time.
  Mr. Chairman, I want to start by thanking the chairman, Mr. Frank, 
for engaging in, as he always does, a really great debate, and I agree 
with his idea here but I disagree with the principle that he's using to 
achieve it by expanding and creating a new government program.
  The HOME program, the gentleman before me just spoke of, provides a 
very similar application of funds, $2 billion a year, to help with 
rental assistance and affordable housing. Rather than fixing this 
program and improving it, they are creating a whole other program.
  And, as I said, I disagree with the principle on the size and scope 
of government and government's role, but Mr. Chairman, there's a common 
thread running through the agenda of this new Democrat majority, and 
that common thread is that there's a massive expansion of government. 
If government is not needed, they will add a little government 
intervention, and if there's already too much government intervention, 
they will just expand it even more.
  The bill we're debating falls squarely into the second category. The 
bill, so far as I can tell, is all about more government control of 
this process. Rather than using the marketplace to improve the 
affordability of homes, they're creating another government program 
which redistributes money, in fact, a tax on every mortgage in this 
country, and then redistribute it to those through a government 
program. It makes no sense to create another duplicative program.
  As my colleague from Alabama said, there are already over 30 
affordable housing programs within the government. Most of those 
programs do not,

[[Page 26968]]

in fact, build houses, but they give rental assistance. They give 
assistance so people can buy their first home. They give assistance in 
a number of different categories, but the Federal Government doesn't 
build homes. We have to allow the private sector to do that, which is 
what I think is most important.
  But what is especially true in light of the fact that this bill we're 
debating today creates a new program that is nearly identical to one 
already existing, the HOME program, which, as I said earlier, is a $2-
billion-a-year program, let's fix that program. Let's look at market-
based incentives to allow people to afford housing. Let's allow the 
marketplace to work rather than create another government program, and 
that's why we should vote against this bill.
  Mr. FRANK of Massachusetts. How much time remains, Mr. Chairman?
  The CHAIRMAN. The gentleman from Massachusetts has 9 minutes 
remaining, and the gentleman from Alabama has 16\1/2\ minutes 
remaining.
  Mr. FRANK of Massachusetts. Mr. Chairman, I yield myself 1 minute 
just to say that the assertion that this is ignoring the private market 
would be more persuasive to me if it were not for the fact that every 
organization that is engaged in the private market building of housing 
disagrees.
  The National Association of Realtors and the National Association of 
Home Builders, neither of which are known for its socialist tendencies, 
have written letters in support of this bill exactly as it has been 
presented. They who fully understand the market, and we don't just use 
boilerplate rhetoric to describe it, understand the importance of 
interactivity between some public sector participation and the market, 
and this creates no new government bureaucracies.
  This funds existing State and local housing programs. The Federal 
role will be for HUD by a formula to distribute it. It is a funding 
mechanism for the State and local authority.
  Mr. Chairman, I yield 3 minutes to the gentleman from Texas (Mr. Al 
Green).
  Mr. AL GREEN of Texas. I thank the chairman and the ranking member, 
but I also thank the subcommittee chairperson, Maxine Waters, for the 
fine, stellar job that she has done with this piece of historic 
legislation.
  Mr. Chairman, this is an historic occasion with historic 
opportunities. This historic occasion provides the historic opportunity 
to not only cast an historic vote but to also be on the right side of 
history.
  On July 2, 1964, this House made history when it passed the Civil 
Rights Act of 1964 which, among other things, outlawed discrimination 
in public accommodations and encouraged desegregation and education. 
289 were on the right side of history. They voted for the Civil Rights 
Act of 1964.
  On August 3, 1965, this House again made history with the passage of 
the Voting Rights Act of 1965, benefiting millions of minority voters. 
328 were on the right side of history. They voted right when they voted 
to protect voting rights.
  On April 10, 1968, this House again made history when it passed the 
Fair Housing Act, prohibiting discrimination in housing. 250 were on 
the right side of history. They voted for equality of housing 
opportunities for all.
  Today, we must cast another historic vote, a vote for a National 
Affordable Housing Trust Fund. For the first time in history, in the 
history of the United States of America, we will have a fund dedicated 
to making the American Dream of a place to call home a reality.
  And, yes, there are other housing programs, some say 30, some say 
more than 30. Every one of them is needed. Every one of them, even 
under a Republican-controlled House, Republican-controlled Senate, 
Republican-controlled administration, the programs were not eliminated. 
Every one of them is needed.
  There is a need for this affordable housing trust fund as well, and I 
say to my friends, whether we will make history today with our vote is 
not the question. The question is what side of history will we be on. 
Will we be on the side of those who need this affordable housing trust 
fund or will we be on the side of the rhetoric that is in opposition to 
a needed program?
  Mr. BACHUS. Mr. Chairman, I yield myself such time as I may consume.
  Mr. Chairman, I want us to be clear about something. We hear from the 
majority this is a historic moment, and I will say to the majority I 
believe that it is. I believe that it is very significant. I don't 
believe that what we're debating here is insignificant at all. In fact, 
I want to yield the chairman 15 seconds to respond, but I believe the 
chairman himself has said, my recollection, that this trust fund would 
be the largest expansion of a Federal housing program in decades, and I 
yield to the chairman because when I said that before, he shook his 
head and I don't know if he was shaking his head at that.
  I yield to the gentleman from Massachusetts.
  Mr. FRANK of Massachusetts. Yes, in decades. I thought the gentleman 
said 30 years. I would not claim that it was the largest in 30 years, 
but it certainly has been the largest since the Republicans took power 
12 years ago since they tried to kill them all.
  Mr. BACHUS. Back in June, when you released your press statement, you 
said this trust fund would be the largest expansion of Federal housing 
in decades and that was June 28.
  Mr. FRANK of Massachusetts. I would say 20 years.
  Mr. BACHUS. What we're doing here is we're taking money to fund this 
large expansion of Federal housing, we're not taking it from the 30 
existing programs that specifically address low-income housing, 
elderly, disabled, AIDS, senior citizens.
  We're taking it from FHA and from the GSEs which actually that money 
presently today promotes an affordable mortgage for all Americans. So 
we're taking from low-income, middle-income Americans, we're taking 
from programs which promote affordable housing for them, and we're 
transferring it to other Americans.
  In doing it, we're not reforming. There are 80-something programs. 
The gentleman had said how many programs, are there 80 or 30. There's 
80 housing programs, 34 of which specifically address low-income 
Americans.
  At this time I would like to yield 3 minutes to the gentlewoman from 
West Virginia (Mrs. Capito).
  Mrs. CAPITO. I would like to thank the ranking member for yielding me 
time, even though we happen to disagree on this issue. I would also 
like to thank the chairman for his dedication to affordable housing.
  I rise today in support of the creation of the affordable housing 
trust fund. Many States and communities across the Nation have already 
created State housing trust funds.
  My home State of West Virginia is one of those, and what we've seen 
in the creation of that West Virginia housing trust fund is the 
flexibility in the ability to target certain funds to certain projects, 
and it becomes a very workable and a very adaptable program.
  The creation of a national trust fund will continue the good work of 
providing low-income folks with rental assistance, new construction, 
preservation of existing units, homeownership assistance and many other 
important programs.
  This trust fund will provide State and local housing authorities with 
the funding and flexibility to best address the unique housing needs of 
their communities. Certainly the needs of communities in my home State 
of West Virginia are drastically different than those in the larger 
urban areas. For instance, in West Virginia we have a high 
homeownership, but we also have a definite question about the quality 
of the housing that people are living in and the rehabilitation of 
those homes is extremely important.
  We also have an aging population where the different needs and 
different housing situations change, and I don't think we are 
addressing those needs, and I think this Federal housing trust fund 
could help with us with that.
  So today I applaud this bill. I applaud the flexibility and 
adaptability

[[Page 26969]]

in it, and I'm very much in favor of the ability that this trust fund 
is going to have to be able to adapt and create housing opportunities 
for those who need it.

                              {time}  1330

  Mr. BACHUS. Mr. Chairman, I would like to yield to another of our 
Members.
  Let me say this about Members. Two Members on our side have spoken in 
favor of this program. It is very difficult for Members to oppose a 
program that actually creates or has at its purpose creating affordable 
housing. You will see that by the two Members who are speaking.
  Again, I will say that the majority of our Members believe that if 
you have 80-something programs and they are not working, you have a 
program, the HOME Investment Partnerships Program which, actually, this 
program actually says that if HUD doesn't adopt regulations, just 
simply adopt the regulations and the distribution of that program. So 
they almost mirror each other.
  If those programs aren't working, why take money from FHA, which is 
one of the most successful affordable housing programs in America? Why 
take money away from middle- and low-income Americans to create yet 
another program? In fact, if you think about that, you are creating two 
bureaucracies, two programs with all the Federal employees that go into 
those programs, and you are putting money in one program, and then you 
are taking it out of that program and you are putting it in another 
program. That, in itself, involves a cost to the taxpayers.
  In fact, when you take from one Federal program and put it in 
another, as opposed to appropriate money, to me that's the worst of all 
worlds from an efficiency standpoint.
  I yield to the gentleman from Connecticut (Mr. Shays) for 3 minutes.
  Mr. SHAYS. I appreciate my ranking member, Spencer Bachus, who I 
think is just an outstanding Member of this Congress, for yielding me 
this time.
  Mr. Chairman, I rise in support of this legislation, of which I am an 
original cosponsor, and am grateful to the ranking member for his 
understanding about these issues and to Chairman Frank and to 
Chairwoman Waters' outstanding work in bringing this bill to the floor.
  I know there are some on my side, obviously, who oppose and are 
uncomfortable with reinjecting the Federal Government into the 
construction of new housing. I think it's long overdue.
  Here is where I come from on this issue. We have an undeniable and 
pressing need for high-quality, affordable housing, not just in 
Connecticut, but around the country. We simply cannot wish the problem 
away. There are steps that can be taken at a local level, such as 
requiring affordable units to be included in the construction of new 
housing. But without the Federal Government's assistance, I am 
concerned we will have a perpetual problem of families struggling with 
rent payments that consume 50, 60 or 70 percent of their monthly 
income.
  Low-income families who are committing such a high percentage of 
their income to meeting rent are suffocating. There is less money for 
food, less money for new clothes for the kids and less for taking care 
of one's health. A Harvard study reported the number of American 
households paying more than half their incomes on housing increased to 
17 million in 2005; 8.2 million renters and 5 million homeowners have 
suffered severe cost burdens. On any given night we can find three-
quarters of a million Americans homeless. In these great United States, 
I believe we can do better.
  This legislation addresses the problem in a creative way. The 
government-sponsored enterprises, Fannie Mae and Freddie Mac, who 
receive significant special treatment under Federal law by not having 
to pay State or local taxes and who are able to borrow money at a lower 
rate because of an implicit government backing, will be required to 
contribute funds in amounts equal to a percentage of their average 
mortgage portfolio.
  In addition, expected savings from passage of legislation to 
modernize the Federal Housing Administration will be applied to these 
funds. These funds will be distributed by formula to the States and 
localities that will subsequently make funds available under a 
competitive selection process to qualified recipients for the 
construction, rehabilitation and preservation of affordable housing, 
including both rental housing and homeownership. The results will be 
directly and quickly realized in our communities.
  Capital grants and loans for new and rehabilitated housing, land 
acquisition, homeowners assistance and interest rate buy-downs will be 
available. The fund targets low-income individuals but also allows 
localities to address the needs of working-class families. The fund 
will be adequately flexible but subject to many responsible use 
restrictions to ensure taxpayers' dollars are well spent.
  I am also grateful that among the purposes of this bill is the stated 
goal of building rental housing in mixed income settings.
  As a strong supporter of the HOPE VI program, which requires mixed 
income reconstruction, I have seen first hand the value of building 
diverse communities where people of different income levels can live 
together, learn from one another, and raise their families in a safe 
and healthy environment.
  I urge my colleague to support this legislation and again would like 
to express my appreciation to my colleagues on the Financial Services 
Committee who made this excellent idea a reality.
  Mr. BACHUS. Mr. Chairman, I reserve the balance of my time.
  Mr. FRANK of Massachusetts. I yield 2 minutes to the gentleman from 
Rhode Island, my neighbor, Mr. Kennedy.
  Mr. KENNEDY. Mr. Chairman, I want to commend the chairman of the 
committee, Mr. Frank, for his tireless efforts on behalf of affordable 
housing and say I am astounded to hear my colleagues on the other side 
bemoan the fact that there is too much effort being made to provide 
affordable housing in this country. I don't know where they are living. 
I don't know who they represent. They are certainly not living anywhere 
that I have been.
  In my district, my business community is saying that they can't get 
workers because there aren't enough affordable housing spots for those 
workers to be able to live so they can actually work in the businesses 
that they are needed.
  I don't know how my Republican friends think that they are somehow on 
the side of the free market, when the free market isn't going to even 
work if the workers they need can't even afford the housing they need 
in order to live where they work.
  This housing trust fund is a basic concept. I think it's a fantastic 
idea. It's one that I support wholeheartedly.
  I just would say that this notion that government is bad, bad, bad, 
it's funny, because it reminds me of the story of the elderly woman 
jumping up at a senior town hall meeting saying, get your government 
hands off my Medicare. Medicare, by the way, is a government program, 
in case everyone hasn't forgotten, and one of the most successful 
programs that there has ever been, but you wouldn't know that by the 
way Republicans talk, 3 percent overhead on their Medicare. You never 
hear that when they talk about socialization and government programs.
  Finally, I would just say there is a story about the Englishman and 
the German and the Russian. All have a genie that says ``Give us your 
wish.'' The Englishman says, ``Oh, I will have Wyoming, a big ranch out 
in Wyoming.'' The German says, ``I will have a Swiss chalet.'' The 
Russian says, ``Well, you know what? My neighbor has a barn; destroy 
it.''
  Sounds like the Republicans kind of have the Russian point of view. 
It doesn't make any sense. Their neighbors can't have it. That's their 
attitude.
  Mr. BACHUS. Mr. Chairman, I have been in this House for 15 years. I 
have never asked that a Member's words be taken down, but I will tell 
you that I came as close to doing that as I have any time in my 15-year 
career. For a gentleman to get up and say that we Republicans today 
have said we don't care about low-income Americans and we think too 
much money is being

[[Page 26970]]

spent on these programs, no one has said that.
  I don't know where he is getting that. I wish he would talk about the 
merits of the program as opposed to slamming Republicans, going into 
Medicaid, Medicare, and those. But I didn't do that, but I will tell 
you that those last remarks did not represent what anyone on this side 
has said.
  Mr. Chairman, I yield 3 minutes to the gentleman from Illinois (Mr. 
Roskam).
  Mr. ROSKAM. I thank the gentleman for yielding.
  You know, the gentleman from Rhode Island said he was astounded, and 
he was bemoaning, and wondering who people like me represent.
  Well, folks that I represent have a very high expectation of this 
Congress, and the expectation is that it's a Congress that is going to 
live up to and match the rhetoric of the campaign of 2006. The campaign 
of 2006, you recall, was a campaign that seemed to focus on living 
within our means.
  I didn't hear, as one speaker on the other side of the aisle, the hue 
and cry of the American people to come up with a new program. I heard 
the hue and cry of people within my district to live within the means 
of government.
  I am informed that right now the budget of the Department of Housing 
and Urban Development is on the order of $35 billion. When I go back to 
the Sixth District of Illinois, they are not bemoaning, they are not 
astounded. They have an expectation that we are going to live within 
our means, that within $35 billion, not $5 billion, not 10, not 15, not 
20, not 25, not 30, but $35 billion, that the taxpayers have entrusted 
to us, that somehow that's not enough, and that the only way that this 
problem can get solved is by going to create another fund, another fund 
that somehow isn't going to have new Federal employees, somehow is 
going to be cut out of whole cloth and, counterintuitively, from my 
point of view, is going to create a higher cost of housing borrowing on 
the very people that we are trying to help. Well, the district that I 
represent has the expectation that we will do the right thing, that we 
won't get caught up in a demagogy and sound bites and so forth, but 
that we will look clearly at the bills that are before us.
  In this case, with all due respect to the well-intentioned sponsors, 
this bill falls short, and we can do better.
  Mr. FRANK of Massachusetts. Mr. Chairman, I reserve the balance of my 
time.
  Mr. BACHUS. Mr. Chairman, what we are talking about here today is 
creating what the chairman of the committee said back in June was the 
largest expansion of a Federal housing program in decades. How the 
chairman proposes, and I don't question his motivation, because I know 
that his motivation is helping low-income Americans. There is a need 
for low-income affordable housing.
  He has disputed my representation that there are 30 some-odd programs 
that address low-income affordable housing.
  Mr. Chairman, I would like to include the response to my inquiry to 
HUD, which is a list of 34 programs.

        HUD Programs--Promoting Affordable Housing Opportunities


             Program Area: Community Planning & Development

       1. Home Investment Partnerships Program.
       2. Supportive Housing Program.
       3. Section 8 Moderate Rehabilitation Single Room Occupancy.
       4. Rural Housing and Economic Development Program.
       5. Self-Help Homeownership Opportunity Program.
       6. Housing Opportunities for Persons With AIDS.


                         Program Area: Housing

       7. One- to Four-Family Home Mortgage Insurance.
       8. Mortgage Insurance for Disaster Victims.
       9. Rehabilitation Loan Insurance.
       10. Loss Mitigation.
       11. Mortgage Insurance for Condominium Units.
       12. Home Equity Conversion Mortgage Insurance.
       13. Good Neighbor Next Door Program.
       14. Section 202--Supportive Housing for the Elderly 
     Program.
       15. Assisted-Living Conversion Program.
       16. Cooperative Housing.
       17. Multifamily Rental Housing for Moderate-Income Families 
     Mortgage Insurance.
       18. Existing Multifamily Rental Housing (Section 207/223 
     (f)).
       19. Mortgage Insurance for Housing for the Elderly (Section 
     231).
       20. New Construction or Substantial Rehabilitation of 
     Nursing Homes, Intermediate Care Facilities, Board and Care 
     Homes, and Assisted Living Facilities; Purchase or 
     Refinancing of Existing Facilities..
       21. Supplemental Loans for Multifamily Projects.
       22. Supportive Housing for Persons with Disabilities 
     (Section 811).
       23. Multifamily Mortgage Risk-Sharing Program.
       24. Mark-to-Market Program.
       25. Section 8 Project-Based Rental Assistance.


                 Program Area: Public & Indian Housing

       26. Housing Choice Voucher Program.
       27. Homeownership Voucher Assistance.
       28. Project-Based Voucher Program.
       29. Revitalization of Severely Distressed Public Housing 
     (HOPE VI).


            Program Area: Fair Housing and Equal Opportunity

       30. Section 3 Program.


              Program Area: Policy Development & Research

       31. Partnership for Advancing Technologies in Housing 
     (PATH) Initiative.


         Program Area: Government National Mortgage Association

       32. Ginnie Mae I Mortgage-Backed Securities.
       33. Ginnie Mae II Mortgage-Backed Securities.
       34. Ginnie Mae Multiclass Securities Program.

  You look over those programs and you find HOPE VI, which, I think all 
Members would agree, supplies low-income housing for America. We have 
got section 8. We have got programs to rehabilitate nursing homes, to 
build intermediate care facilities, to establish boarding and care 
homes, on and on, support for persons with disabilities, persons with 
AIDS, disaster assistance or homes for those caught in disasters.
  As the gentleman from Illinois said, $35 billion is going into those 
programs. But out of all those programs, this program, if you look at 
where the money is going to be distributed, it actually says that if 
HUD does not write regulations that will basically take the HOME 
investment program, it will be distributed to the same agencies for 
purposes of low-income housing, which is the exact purpose of the HOME 
program. If the HOME program isn't working, why wouldn't we appropriate 
money for the HOME program? If these programs are not working, why 
would we do that?
  Why? Several people have said, the gentleman from Texas on the other 
side said over 50 percent of Americans today are struggling to meet 
their housing needs. Most of those, most of those low- and middle-
income Americans are homeowners, and they are struggling with making 
their mortgage payments.
  You open the newspapers, you find that foreclosures are at a historic 
high; yet what is proposed to us today?
  What is proposed is that we take money from FHA and from Fannie and 
Freddie, which are both used. One is, FHA, as we all know, is 
affordable mortgage for low-income, middle-income Americans.
  The GSEs promote mortgage liquidities. I don't see how you can take 
money from FHA, take money from the GSEs, fund this program without it 
affecting FHA and the GSEs. Diverting GSE funds to an affordable 
housing fund is essentially a tax on the GSEs.
  Who has to pay that tax? That's a tax on their mortgage business. 
That ultimately is going to be paid by low-income borrowers. The 
proposal to take FHA receipts, it's going to mean fewer low-income 
Americans will have access to affordable FHA mortgages in the long run.
  You can't create something from nothing. You can't create a program 
funded from an established program which supplies Americans with low-
income mortgages or supplies liquidity to the mortgage market. You 
can't take money from those programs without affecting those programs. 
There are always costs.
  You can't, as the chairman said, have the largest expansion of 
Federal housing programs in decades, take it from FHA and the GSEs, 
which supply mortgage liquidity. You can't take that kind of money 
without affecting those programs.

[[Page 26971]]



                              {time}  1345

  With all these programs, including the HOME program, which, as I 
said, mirrors the proposal before us today, we need, in conclusion, 
let's ask ourselves 2 questions: If all the efforts today, all these 
programs, 80 programs in all, 30-something programs addressing this, 
plus FHA and the GSEs, which also have a mission to loan money for 
mortgages for multifamily units, if those aren't working, why wouldn't 
we fix those existing programs?
  And even if we conclude that we need a new program, a national 
housing trust fund, why in the world would we go to FHA and the GSEs 
and ask them to fund those programs at the very time when we're having 
a subprime mortgage crisis in this country? And we have all asked, we 
have directed FHA and the GSEs to address this problem, and now we're 
taking money away from them and ultimately from low- and middle-income 
Americans.
  Mr. Chairman, I yield back the balance of my time.
  Mr. FRANK of Massachusetts. How much time remains, Mr. Chairman?
  The CHAIRMAN. The gentleman from Massachusetts has 3 minutes 
remaining.
  Mr. FRANK of Massachusetts. Mr. Chairman, I regret to say that my 
colleague from Alabama does not appear to be familiar with the bills. I 
will say, this argument that, oh, how can we do this and create a 
housing trust fund at the moment that we have a subprime crisis has no 
validity, it's purely tactical, because exactly the same arguments were 
being made before the subprime crisis. There's an ideological objection 
to getting the Federal Government in the business of helping build 
affordable housing.
  The gentleman finally named some of the programs: Building 
intermediate nursing home facilities, housing for people with AIDS.
  My question to him, repeated and ultimately unanswered was, where are 
the programs that help build affordable family housing? It is not an 
annual section 8 voucher program which doesn't help build housing. It's 
not intermediate nursing home facilities. It's not help for people with 
AIDS. It's none of those programs. HOPE VI, yes. It exchanges some kind 
of housing for others. HOPE VI has not resulted in any net addition to 
housing. We're trying to prevent it from being a net diminution.
  He then says, well, you're taking money from the FHA and they won't 
help low-income people. Totally and completely false, portraying a 
total misunderstanding of the bill. In fact, it is the bill that we 
passed, unlike the bill that passed under the Republicans, that 
prohibits the FHA from raising mortgage insurance premiums on people 
and give that money to the Treasury. That was the Republican approach. 
We capped those fees.
  Here's where the FHA money comes from. We take the limit that the 
Republicans allowed to stand for years on the number of home equity 
mortgages the FHA can insure. We also, unlike the Republicans, limit 
the amount that the elderly can be charged for the first time under 
those by the servicers, and we are told by CBO that as we increase the 
volume of FHA home equity mortgages at a lower price for the elderly 
than existed under the Republican rule, we will generate money.
  Now, if we didn't pass this bill, this administration would take that 
money and put it into the Treasury so it could go help fund the war in 
Iraq; it could go help fund highway projects, agricultural subsidies.
  That's the choice. Do we, having created an additional revenue stream 
for the FHA, while limiting fees, let it go to the Treasury for 
agricultural subsidies and the war in Iraq, or do we put it into 
affordable housing?
  With the GSEs, until we talked about helping build affordable low-
income housing, my Republican friends were very critical of the GSEs on 
the whole. The stockholders were getting too much money and too much 
return for too little.
  Nothing in this bill will increase the amount that people have to pay 
on the mortgages any iota. What it says is that out of the profits of 
Fannie Mae and Freddie Mac, we're going to make them divert some of 
this for these public purposes. So in direct contradiction to what the 
gentleman says, there are not 34 programs that help build affordable 
housing. There is 1, now there will be 2, and I hope the bill passes.
  Ms. JACKSON-LEE of Texas. Mr. Chairman, I rise today in strong 
support of H.R. 2895, the National Affordable Housing Trust Fund Act of 
2007. I would like to thank my distinguished colleague, the chairman of 
the Financial Services Committee, Mr. Frank, for introducing this 
legislation, as well as for his leadership in bringing this important 
issue to the floor.
  Mr. Chairman, in recent months we have seen a crisis in subprime 
mortgage lending, which has threatened the stability of the housing 
market and the livelihoods of large numbers of Americans. This 
Democratic Congress is committed to strengthening the housing market 
and stabilizing the economy, and this legislation is an important step 
toward these important goals.
  Because of the lack of regulation by the Federal Government, many 
loans were accompanied by fraud, inadequate information and other 
failures of responsible marketing. With exceptionally high (and rising) 
foreclosure rates across the country, homeowners all over America are 
losing their homes. Homeowners are surprised to find out that their 
monthly payments are spiking and they are struggling to make these 
increasingly high payments.
  The sub-prime mortgage crisis has impacted families and communities 
across the country. Home foreclosure filings rose to 1.2 million in 
2006--a 42 percent jump--due to rising mortgage bills and a slowing 
housing market. In Iowa, 3,445 families experienced foreclosure last 
year, up 64 percent from 2005. Nationally, as many as 2.4 million sub-
prime borrowers have either lost their homes or could lose them in the 
next few years. I commend the Democratic-led House Financial Services 
Committee for its work on this issue, toward achieving a balanced 
solution that helps stabilize the mortgage market, stops abuses, 
preserves access to credit, and aids stable homeownership.
  H.R. 2895 establishes a National Affordable Housing Trust Fund to 
build or preserve 1.5 million homes or apartments over the next 10 
years, and it does so without increasing Government spending or the 
Federal deficit. This legislation is a fiscally responsible way of 
expanding affordable housing and mortgage loan opportunities for 
families at risk of foreclosure, while also strengthening consumer 
protections against future risky loans. H.R. 2895 initially allocates 
between $800 million and $1 billion annually, funded through Fannie Mae 
and Freddie Mac. This funding is given directly to States and local 
communities, and is targeted to be used for the construction of 
affordable housing and support for lower income families, who face the 
greatest housing affordability challenges.
  Mr. Chairman, 17 million households, or one in seven, spend more than 
50 percent of their income on housing. On any given night, 
approximately 750,000 men, women, and children are homeless. 
Constructing more affordable housing is necessary to help families who 
have lost their homes in the subprime mortgage crisis or due to a 
family financial crisis, such as illness or job loss. It will also make 
significant strides toward reducing homelessness and the number of 
Americans living in unsafe housing conditions.
  The National Affordable Housing Trust Fund, established by this 
legislation, must be used for low- and moderate-income families, or 
those below 80 percent of State or local median income. At least 75 
percent of funds must go to extremely low-income families, who are 
below 30 percent of median income. This legislation also helps the 
families of our Nation's nurses, teachers, firefighters, and police 
officers by reserving 10 percent of trust fund money for families who 
earn between 50 and 80 percent of the national median income. H.R. 2895 
allows these funds to be used for construction, rehabilitation, 
acquisition, preservation incentives, and operating assistance to 
facilitate affordability. These funds may be used for both affordable 
rental housing and for down payment and closing cost assistance by 
first-time homebuyers.
  Mr. Chairman, provisions in this legislation ensure equitable 
distribution of funds across our Nation. Of these funds, 60 percent 
will go to participating local jurisdictions, and 40 percent will go to 
States, Indian Tribes, and insular areas. All grantees will be required 
to make funds available in rural areas, proportionate to identified 
need in such areas. Eligible recipients of these funds can be any 
organization, agency, or other entity that has demonstrated the 
experience and the capacity to carry out the proposed trust fund 
activity, including for-

[[Page 26972]]

profits, nonprofits, and faith-based organizations. Funds may not be 
used for administrative costs or expenses, political activities, 
advocacy, lobbying, counseling, travel expenses, and preparation of or 
advice on tax returns. Grantees are required to develop systems to 
ensure program compliance and oversight.
  In my home district in Houston, homelessness remains a significant 
problem. Houston's homeless population increased to approximately 
14,000 in 2005, before Hurricanes Katrina and Rita, and hurricane 
evacuees remaining in the Houston area could result in the homeless 
population increasing by some 23,000. Approximately 28 percent of 
homeless Americans are veterans.
  In August, I, in coordination with the Texas Department of Housing 
and Community Affairs, hosted a workshop on the introductory concepts 
and considerations in applying for Housing Tax Credits in Texas. This 
workshop was designed to create new incentives for developers to expand 
business opportunities in housing development, as well as to generate a 
significant increase in the availability of low-income and affordable 
housing for the residents of Houston and Harris County. I believe that 
an increase in affordable housing and job opportunities will help 
reduce the high rates of homelessness among Houston residents.
  Mr. Chairman, the 110th Congress has already demonstrated its 
commitment to moving America in a new direction. This includes 
strengthening the housing market and stabilizing the economy, 
particularly after the recent subprime mortgage crisis. This 
legislation is an important step toward expanding affordable housing 
and mortgage opportunities for American families.
  I strongly urge my colleagues to join me in supporting this important 
legislation.
  Mr. BACA. Mr. Chairman, I ask unanimous consent to revise and extend 
my remarks.
  One in seven households now spends more than half of its income on 
housing and nearly one million men, women, and children are homeless.
  How can we claim to be the leader of the free world yet allow so many 
of our own to be chained by the bonds of poverty?
  Unfortunately, there are no programs to help build housing for low-
income households. This bill will construct affordable housing for the 
poorest among us who need it the most.
  It will help families who have lost their homes in the subprime 
mortgage crisis or due to a family financial crisis, such as ill health 
or job loss.
  It will also help reduce homelessness and the number of Americans 
living in unsafe housing conditions.
  Because of this bill, more nurses, teachers, firefighters, and police 
officers throughout California will have access to affordable housing.
  The bottom line is that no family should have to choose between 
paying for food and medicine and safe, decent housing.
  H.R. 2895 restores our Nation's promise of a decent home for every 
American family and I urge my colleagues to support it.
  Ms. LEE. Mr. Chairman, I rise today in strong support of the rule for 
H.R. 2895 and the underlying bill, the National Affordable Housing 
Trust Fund Act.
  As a former member of the Financial Services Committee, I helped 
author--along with our colleague Bernie Sanders and others--the first 
housing trust fund bill. I am so very pleased that our two great 
champions of housing, Chairwoman Waters and Chairman Frank have 
continued this legacy to bring this proposal before us today.
  Quite frankly it's a real shame that in America we have so many 
people who have found the goal of simply finding shelter for themselves 
and their families so elusive.
  I know that in my district in Oakland, where more than half of all 
renters are unable to afford the cost of a 2-bedroom apartment, many 
low-income families often have to choose between food or medicine and 
housing.
  This doesn't have to be the case, Mr. Chairman. That's why this 
legislation is crucial.
  By producing, rehabilitating, and preserving 1.5 million housing 
units over the next 10 years, this legislation will take steps to end 
the affordable housing crisis in our country.
  By allocating up to $1 billion annually this bill will address one of 
the most serious social and economic problems facing our Nation.
  By passing this bill, 75 percent of all funds will be used to benefit 
families at the poverty line or 30 percent of local area median income, 
bringing meaningful assistance to those most at need.
  I urge my colleagues to support this important bill that will move 
our Nation forward in ensuring that all Americans have a decent place 
to live.
  Mr. VAN HOLLEN. Mr. Chairman, first let me thank Chairman Frank and 
Subcommittee Chair Waters for their work on this important, bipartisan 
bill.
  The National Affordable Housing Trust Fund will help provide funding 
for low-income families who, absent this assistance, may not be able to 
afford their own home. There are many dedicated Government agencies, 
non-profits, for-profits and community and faith-based organizations 
who will seek to participate in this important program.
  To ensure that the most productive housing projects are funded--
projects dedicated to funding sustainable, successful programs--I am 
proposing an amendment to introduce a measure of longer term 
accountability to the trust fund application process.
  This bill establishes two levels of applicant-centered 
accountability:
  A trust fund applicant must describe the types of projects he intends 
to support and must establish performance goals, benchmarks and 
timetables to help measure the projects' success--later, the applicant 
must produce a report describing the progress of those projects during 
that fiscal year.
  Because the applicant is only required to report on his projects for 
that year, this process, despite its commonsense ambitions--effectively 
breaks the chain of accountability between the grantee and his projects 
at the end of the fiscal year.
  This amendment will maintain that chain of accountability by 
requiring that any previous grantee who seeks funding from the 
Affordable Housing Trust Fund provide as part of his application a 
progress report on the previous projects funded by his organization 
with funds from this trust fund.
  The Affordable Housing Trust Fund will produce billions of dollars 
worth of grants. HUD does not have the resources to monitor all the 
projects funded with these funds. The government will therefore have to 
rely on grantees to shoulder part of the burden. When grantees return 
for additional assistance each year, they will be required to update 
HUD on the success of their previous trust-funded projects.
  I encourage my colleagues to support my amendment and help ensure 
that the real beneficiaries of this important program are the low-
income families it was created to help.
  Mr. RAMSTAD. Mr. Chairman, that great Minnesotan Hubert Humphrey 
said, ``The moral test of government is how that government treats 
those who are in the dawn of life, the children; those who are in the 
twilight of life, the elderly; and those who are in the shadows of 
life, the sick, the needy, and the disabled.''
  The National Affordable Housing Trust Fund meets this moral test. It 
fills a critical need for vulnerable families, children, the elderly 
and people with disabilities.
  The shortage of affordable housing is truly a crisis in our country--
and it is not restricted to inner cities.
  Virtually all of the suburban cities I represent have long waiting 
lists for affordable housing. I hear stories every week about families 
living in their cars, veterans living on the streets, seniors having to 
choose between medicine and housing.
  Several of the communities I represent have sponsored ``sleepouts'' 
to raise money and awareness of the problem of homelessness and near-
homelessness. They have raised millions of dollars and helped thousands 
of families.
  But the crisis is just too big. The Federal Government has a critical 
role to play in helping the 14.4 million families with housing needs in 
our country. The important assistance in this bill can make the 
difference between stable housing and no housing at all.
  Mr. Chairman, by setting aside funds for the production, preservation 
and rehabilitation of affordable housing, this legislation will help 
those suffering the ravages of poverty, homelessness and near-
homelessness.
  I urge all members to support this important legislation to expand 
affordable housing for all Americans. Everyone deserves to have a place 
to sleep every night that is stable and warm.
  It's time to address the affordable housing crisis in America. It's 
time to pass the Affordable Housing Trust Fund.
  Mr. WELCH of Vermont. Mr. Chairman, I want to thank Chairman Frank 
and his Committee staff, particularly Scott Olson, for working with me 
on this important bill to reach a compromise on issues in the bill 
affecting small states.
  The legislation as a whole creates a national housing trust fund for 
the construction, rehabilitation, and preservation of an estimated 1.5 
million units of affordable housing for low-income families. Along with 
food, health care, and energy costs, affordable housing can make all 
the difference in economic survival.
  In Vermont, we have a great need for affordable housing. While so 
many low- and moderate-income households aspire to own

[[Page 26973]]

their own home, limited supply, rising costs, and other barriers can 
make this dream out of reach. Beginning in 2005, the new construction 
of 12,321 owner-occupied homes in Vermont was needed to meet the total 
demand expected in 2010.
  Creating a National Affordable Housing Trust Fund is the brainchild 
of my predecessor in the House, Bernie Sanders, and I thank him for 
getting the ball rolling.
  I am grateful to Chairman Frank for including two items I recommended 
into the manager's amendment. The first provision will ensure that each 
State receive at least one half of one percent of funding. For a State 
agency, there really is a funding level below which it's incredibly 
inefficient to administer a Federal program. There are always numerous 
Federal requirements resulting in a tremendous amount of work to 
comply. In addition, it's hard to raise the expectations of those who 
would potentially benefit from the program and then have very little 
money to deliver.
  Furthermore, numerous social programs, including the HOME program to 
which this trust fund is similar, include small state minimums. For 
programs that are targeted at a need that is universal, it is a pretty 
rational argument that a mechanism should be in place to ensure that a 
portion of funding gets distributed nationwide. In this case, for 
something like housing, it is a nationwide issue so the appropriations 
of Congress should be a nationwide effort.
  The second provision in the manager's amendment says that within the 
participating local jurisdictions pool of funding, that each State has 
at least one local jurisdiction receiving funding. Currently in the 
bill, for a local jurisdiction set to receive less than $750,000, that 
amount is reduced to zero. Without this guarantee, many small cities 
and small States risk receiving no funding under this section of the 
bill.
  I thank the Chairman for his excellent work on this legislation.
  Mr. UDALL of Colorado. Mr. Chairman, I rise in strong support of the 
``National Affordable Housing Trust Fund Act.'' This legislation does a 
great deal to expand safe and affordable housing opportunities for 
millions of American families.
  The bill will initially allocate between $800 million to $1 billion 
annually to States and local communities for affordable housing 
projects for purposes such as construction and rehabilitation. Funds 
may also be used for both rental housing and for down payment and 
closing cost assistance by first-time homebuyers.
  It would reach this worthy goal without increasing Government 
spending or the Federal deficit. The revenue of the fund is supported 
through fees from Fannie Mae and Freddie Mac and the increase in the 
number of FHA loans provided for in legislation already passed by the 
House of Representatives.
  This fund is also targeted; it must be used for low- and moderate-
income families, below 80 percent of State or local median income. The 
bill also prohibits funds from being used for administrative costs or 
expenses, political activities, advocacy, lobbying, counseling, travel 
expenses, and preparation of or advice on tax returns. Any misuse of 
funds is required to be reimbursed.
  This legislation, now more than ever, is worth supporting to expand 
affordable housing and mortgage loan opportunities for families at 
risk. I urge a ``yea'' vote.
  Mrs. CHRISTENSEN. Mr. Chairman, I rise in support of H.R. 2895, the 
National Affordable Housing Trust Fund Act of 2007 because it is just 
what our country needs to strengthen the housing market, stabilize the 
economy, expand affordable housing and mortgage opportunities for 
families at risk of foreclosure and strengthen consumer protections 
against risky loans in the future.
  Mr. Chairman, this bill takes an important step forward in addressing 
the subprime mortgage crisis, and it also makes way for the 
construction of more affordable housing and strengthens FHA's efforts 
to expand homeownership.
  The National Affordable Housing Trust Fund Act will build or preserve 
1.5 million homes or apartments over the next 10 years without 
increasing Government spending or the Federal deficit. It will 
initially allocate $800 million and $1 billion annually directly to 
States and local communities. It targets funds for the construction of 
affordable housing and more for lower income families facing the 
greatest housing affordability challenges.
  Mr. Chairman, I am particularly pleased that 40 percent of the 
funding will go to States, Indian tribes and insular areas, with 
special requirements for funding in rural areas, many of which face 
particular challenges.
  I urge my colleagues to support this important measure which ensures 
that the American dream of owning a home can become a reality for yet 
another generation of Americans.
  Mr. LOEBSACK. Mr. Chairman, I rise today in support of H.R. 2895, the 
National Affordable Housing Trust Fund Act of 2007. I am extremely 
pleased to see this legislation, which will help thousands of low-
income individuals and families, be considered by the House.
  I praise the goals of this legislation, and thank Chairman Frank and 
his staff for the hard work and advocacy on behalf of the families that 
will benefit from the funding of clean, safe, and healthy environments 
in which to live. One of the goals of this legislation to produce, 
rehabilitate, and preserve 1.5 million affordable housing units over 
the next 10 years is extremely important to not only those families who 
will benefit from the improvements, but also to our nation's economy 
and productivity.
  Individuals and families that have adequate housing can focus their 
efforts on work and raising their families, instead of worrying about 
the state of disrepair of their house or housing unit. Homeownership 
exemplifies the American Dream. This dream is increasingly difficult 
for many to realize, even after years of hard work and strife. The 
National Affordable Housing Trust Fund Act will assist those 
individuals who may have believed homeownership to be out of reach by 
helping them with down payments and other costs associated with first-
time home buying.
  This legislation is specifically targeted to extremely low and low-
income families, meaning those who most need help will receive that 
assistance and improve upon their current living conditions. The 
National Affordable Housing Trust Fund also targets funds to the local 
jurisdictions that have the experience in providing and administering 
affordable housing, and who work within the community with the actual 
residents.
  While Iowa may not have many ``urban'' areas in which poverty issues 
are traditionally highlighted; many rural areas of Iowa have seen good-
paying jobs leave our towns at an astonishing rate, devastating our 
communities. It is estimated there are 305,000 Iowan's living in 
poverty. Of that 305,000, almost 90,000 are children under the age of 
18.
  In 1949, The U.S. Housing Act established the admirable goal of ``a 
decent home and a suitable living environment for every American 
Family.'' The National Affordable Housing Trust Fund is another step 
this Congress has taken to ensure we adhere to this goal. I urge my 
colleagues to vote ``yes'' on this important legislation.
  The CHAIRMAN. All time for general debate has expired.
  Pursuant to the rule, the amendment in the nature of a substitute 
printed in the bill shall be considered as an original bill for the 
purpose of amendment under the 5-minute rule and shall be considered 
read.
  The text of the committee amendment is as follows:

                               H.R. 2895

       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 2007''.

     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 address the national shortage of housing that is 
     affordable to low-income families by creating a permanently 
     appropriated fund, with dedicated sources of funding, to 
     finance additional housing activities, without supplanting 
     existing housing appropriations or existing State and local 
     funding for affordable housing;
       ``(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 ownership of one-to-four family owner-
     occupied housing by low-income families; and
       ``(4) to construct, 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.
       ``(b) Deposits to Trust Fund.--The Trust Fund shall consist 
     of--
       ``(1) any amounts of the Federal National Mortgage 
     Association and the Federal Home Loan Mortgage Corporation 
     transferred to the Trust Fund under title XIII of the Housing 
     and Community Development Act of 1992;
       ``(2) any amounts appropriated to the Trust Fund pursuant 
     to the authorization in the Expanding American Homeownership 
     Act of 2007,

[[Page 26974]]

     relating to the use of FHA savings for an affordable housing 
     grant fund; and
       ``(3) any amounts as are or may be appropriated, 
     transferred, or credited to such Fund under any other 
     provisions of law.
       ``(c) Expenditures From Trust Fund.--Amounts in the Trust 
     Fund shall be available to the Secretary of Housing and Urban 
     Development, and are hereby appropriated, for providing 
     assistance under this subtitle.
       ``(d) Federal Assistance.--All assistance provided using 
     amounts in the Trust Fund shall be considered to be Federal 
     financial assistance.
       ``(e) Conditions on Use of FHA Savings.--
       ``(1) Use.--For each fiscal year, no funds may be made 
     available under paragraph (2) of subsection (b) unless the 
     amount equal to the net increase for such fiscal year in the 
     negative credit subsidy for the mortgage insurance programs 
     under title II of the National Housing Act resulting from the 
     Expanding American Homeownership Act of 2007, and the 
     amendments made by such Act, is first made available for the 
     following purposes in the following amounts:
       ``(A) Single family housing mortgage insurance.--For each 
     fiscal year, for costs (as such term is defined in section 
     502 of the Federal Credit Reform Act of 1990 (2 U.S.C. 661a)) 
     of mortgage insurance provided pursuant to section 203(b) of 
     the National Housing Act (12 U.S.C. 1709(b)), the additional 
     amount (not including any costs of such mortgage insurance 
     resulting from this Act or the amendments made by this Act), 
     if any, necessary to ensure that the credit subsidy cost of 
     such mortgage insurance for such fiscal year is $0.
       ``(B) Housing counseling.--For each of fiscal years 2008 
     through 2012, the amount needed to increase funding, for the 
     housing counseling program under section 106 of the Housing 
     and Urban Development Act of 1968 (12 U.S.C. 1701x), in 
     connection with homebuyers and homeowners with mortgages 
     insured under title II of the National Housing Act, from the 
     amount appropriated for the preceding fiscal year to 
     $100,000,000.
       ``(C) Mortgage insurance technology, procedures, processes, 
     program performance, and salaries.--For each of fiscal years 
     2008 through 2012, $25,000,000 for increasing funding for the 
     purpose of improving technology, procedures, processes, and 
     program performance, and salaries in connection with the 
     mortgage insurance programs under title II of the National 
     Housing Act.
       ``(2) Exclusion of earnings from the single family mortgage 
     insurance program.--No funds under paragraph (2) of 
     subsection (b) for a fiscal year may be derived from the 
     negative credit subsidy cost for such fiscal year, if any, 
     for mortgage insurance provided pursuant to section 203(b) of 
     the National Housing Act.
       ``(3) Certification.--No funds may be made available under 
     paragraph (2) of subsection (b) for any fiscal year unless 
     the Secretary of Housing and Urban Development has, by rule 
     making in accordance with section 553 of title 5, United 
     States Code (notwithstanding subsections (a)(2), (b)(B), and 
     (d)(3) of such section), made a determination that premiums 
     being, or to be, charged during such fiscal year for mortgage 
     insurance under title II of the National Housing Act are 
     established at the minimum amount sufficient to comply with 
     the requirements of section 205(f) of such Act (relating to 
     required capital ratio for the Mutual Mortgage Insurance 
     Fund) and ensure the safety and soundness of the other 
     mortgage insurance funds under such Act, and any negative 
     credit subsidy for such fiscal year resulting from such 
     mortgage insurance programs adequately ensures the efficient 
     delivery and availability of such programs.
       ``(4) Limitation on mortgage insurance premium increases.--
     Notwithstanding any other provision of law--
       ``(A) the premiums charged for mortgage insurance under any 
     program under the National Housing Act may not be increased 
     above the premium amounts in effect under such program on 
     October 1, 2006, unless the Secretary of Housing and Urban 
     Development determines that, absent such increase, insurance 
     of additional mortgages under such program would, under the 
     Federal Credit Reform Act of 1990, require the appropriation 
     of new budget authority to cover the costs (as such term is 
     defined in section 502 of the Federal Credit Reform Act of 
     1990 (2 U.S.C. 661a) of such insurance; and
       ``(B) a premium increase pursuant to paragraph (1) may be 
     made only by rule making in accordance with the procedures 
     under section 553 of title 5, United States Code 
     (notwithstanding subsections (a)(2), (b)(B), and (d)(3) of 
     such section).

     ``SEC. 293. ALLOCATIONS FOR STATES, INDIAN TRIBES, INSULAR 
                   AREAS, AND PARTICIPATING LOCAL JURISDICTIONS.

       ``(a) Determination of Amount Available for Fiscal Year.--
     For fiscal year 2008 and for each fiscal year thereafter, the 
     Secretary shall determine the total amount available from the 
     Trust Fund pursuant to section 292(c) for assistance under 
     this subtitle and shall use such amount to provide such 
     assistance for such fiscal year.
       ``(b) Allocation.--For each such fiscal year, of such total 
     amount available from the Trust Fund, the Secretary shall 
     allocate for use under section 294--
       ``(1) 40 percent for States, Indian tribes, and insular 
     areas; and
       ``(2) 60 percent for participating local jurisdictions.

     ``SEC. 294. ASSISTANCE FROM TRUST FUND.

       ``(a) Affordable Housing Needs Formula.--
       ``(1) Establishment and factors.--The Secretary shall 
     establish a formula to allocate amounts made available for a 
     fiscal year for assistance under this subtitle among States, 
     all Indian tribes, insular areas, and participating local 
     jurisdictions based on the relative needs of such entities, 
     for funds to increase the supply of decent quality affordable 
     housing. The formula shall be based upon a comparison of the 
     following factors with respect to each State, Indian tribes, 
     each insular area, and each participating local jurisdiction:
       ``(A) The ratio of the population of the State, Indian 
     tribes, insular area, or participating jurisdiction, to the 
     aggregate population of all States, Indian tribes, insular 
     areas, and participating jurisdictions.
       ``(B) The percentage of families in the jurisdiction of the 
     State, of Indian tribes, or of the insular area or 
     participating jurisdiction that live in substandard housing.
       ``(C) The percentage of families in the jurisdiction of the 
     State, of Indian tribes, or of the insular area or 
     participating jurisdiction that pay more than 50 percent of 
     their annual income for housing costs.
       ``(D) The percentage of persons in the jurisdiction of the 
     State, of Indian tribes, or of the insular area or 
     participating jurisdiction having an income at or below the 
     poverty line.
       ``(E) The cost of constructing or carrying out 
     rehabilitation of housing in the jurisdiction of the State, 
     of Indian tribes, or of the insular area or participating 
     jurisdiction.
       ``(F) The percentage of the population of the State, of 
     Indian tribes, or of the insular area or participating 
     jurisdiction that resides in counties having extremely low 
     vacancy rates.
       ``(G) The percentage of housing stock in the jurisdiction 
     of the State, of Indian tribes, or of the insular area or 
     participating jurisdiction that is extremely old housing.
       ``(H) For the jurisdiction of a State, of Indian tribes, or 
     of an insular area or participating jurisdiction that has an 
     extremely low percentage of affordable rental housing, the 
     extent to which the State, Indian tribes, or the insular area 
     or participating jurisdiction has in the preceding fiscal 
     year increased the percentage of rental housing within its 
     jurisdiction that is affordable housing.
       ``(I) Any other factors that the Secretary determines to be 
     appropriate.
       ``(2) Failure to establish.--If, in any fiscal year 
     referred to in section 293(a), the regulations establishing 
     the formula required under paragraph (1) of this subsection 
     have not been issued by the date that the Secretary 
     determines the total amount available from the Trust Fund for 
     assistance under this subtitle for such fiscal year pursuant 
     to section 292(c), or there has been enacted before such date 
     a joint resolution expressly disapproving the use of the 
     formula required under paragraph (1) and submitted to the 
     Congress pursuant to paragraph (3), for purposes of such 
     fiscal year--
       ``(A) section 293(b), paragraphs (2) and (3) of subsection 
     (b) of this section, and subsection (c) of this section shall 
     not apply;
       ``(B) the allocation for Indian tribes shall be such amount 
     as the Secretary shall establish; and
       ``(C) the formula amount for each State, insular area, or 
     participating local jurisdiction shall be determined by 
     applying, for such State, insular area, or participating 
     local jurisdiction, the percentage that is equal to the 
     percentage of the total amounts made available for such 
     fiscal year for allocation under subtitle A of this title (42 
     U.S.C. 12741 et seq.) that are allocated in such year, 
     pursuant to such subtitle, to such State, insular area, or 
     participating local jurisdiction, respectively, and the 
     allocation for each State, insular area, or participating 
     jurisdiction, for purposes of subsection (e) shall, except as 
     provided in subsection (d), be the formula amount for the 
     State, insular area, or participating jurisdiction, 
     respectively.
       ``(3) Submission to congress.--Notwithstanding any other 
     provision of this subtitle, any formula established by the 
     Secretary pursuant to this subsection shall be submitted to 
     the Committee on Financial Services of the House of 
     Representatives and the Committee on Banking, Housing, and 
     Urban Affairs of the Senate not less than 120 days before 
     application of the formula for purposes of determining 
     formula amounts under subsection (b) for a fiscal year. Such 
     submission shall be accompanied by a detailed explanation of 
     the factors under the formula and anticipated effects of the 
     formula.
       ``(b) Formula Amount.--
       ``(1) In general.--For each fiscal year referred to in 
     section 293(a), the Secretary shall determine the formula 
     amount under this subsection for each State, for Indian 
     tribes, for each insular area, and for each participating 
     local jurisdiction.
       ``(2) States, indian tribes, and insular areas.--The 
     formula amount for each State, for Indian tribes, and for 
     each insular area shall be the amount determined for such 
     State, for Indian tribes, or for such insular area by 
     applying the formula under subsection (a) of this section to 
     the total amount allocated under section 293(b)(1) for all 
     States, Indian tribes, and insular areas 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) of this section 
     to the total amount allocated under section 293(b)(2) for all 
     participating local jurisdictions for the fiscal year.
       ``(4) Notice.--For each fiscal year referred to in section 
     293(a), not later than 60 days after the date that the 
     Secretary determines the total

[[Page 26975]]

     amount available from the Trust Fund for such fiscal year 
     pursuant to section 292(c) for assistance under this 
     subtitle, the Secretary shall cause to be published in the 
     Federal Register a notice that such amounts shall be so 
     available.
       ``(c) Allocation Based on Affordable Housing Needs 
     Formula.--The allocation under this subsection for a State, 
     for Indian tribes, for an insular area, or for a local 
     participating jurisdiction for a fiscal year shall be 
     determined as follows:
       ``(1) States.--Subject to subsection (d), the allocation 
     for a State shall be the formula amount for the State.
       ``(2) Indian tribes and insular areas.--The allocation for 
     Indian tribes and for each insular area shall be the formula 
     amount for Indian tribes or for the insular area, 
     respectively, determined under subsection (b), as applicable.
       ``(3) Participating local jurisdictions.--Subject to 
     subsection (d), the allocation for each participating local 
     jurisdiction shall be the formula amount for the jurisdiction 
     determined under subsection (b).
       ``(d) Allocation Exception for Years in Which Less Than $2 
     Billion Is Available.--If, for any fiscal year, the total 
     amount available pursuant to section 293(a) for assistance 
     under this subtitle is less than $2,000,000,000--
       ``(1) for each participating local jurisdiction having a 
     formula amount of less than $750,000, the allocation shall be 
     $0, except that if the Secretary finds that the jurisdiction 
     has demonstrated a capacity to carry out provisions of this 
     subtitle and the State in which such jurisdiction is located 
     has authorized the Secretary to transfer to the jurisdiction 
     a portion of the State's allocation that is equal to or 
     greater than the difference between the jurisdiction's 
     formula amount and $750,000, or the State or jurisdiction has 
     made available such an amount from the State's or 
     jurisdiction's own sources available for use by the 
     jurisdiction in accordance with this subtitle, the 
     jurisdiction's allocation for a fiscal year shall be the 
     formula amount for the jurisdiction; and
       ``(2) in the case of any jurisdiction whose allocation is 
     $0 by operation of paragraph (1), the allocation for the 
     State in which such participating local jurisdiction is 
     located shall be increased by the amount of the formula 
     amount for the participating local jurisdiction.

     Any adjustments pursuant to paragraphs (1) and (2) shall be 
     made notwithstanding the allocation percentages under section 
     293(b).
       ``(e) Grant Awards.--For each fiscal year referred to in 
     section 293(a), using the amounts made available to the 
     Secretary from the Trust Fund for such fiscal year under 
     section 292(c), the Secretary shall, subject to subsection 
     (f), make a grant to each State, insular area, and 
     participating local jurisdiction in the amount of the 
     allocation under subsection (a)(2), (c), or (d), as 
     applicable, for the State, area, or jurisdiction, 
     respectively.
       ``(f) Matching Requirement.--
       ``(1) In general.--Each grantee for a fiscal year shall 
     contribute to eligible activities funded with Trust Fund 
     grant amounts, or require the contribution to such eligible 
     activities by recipients of such Trust Fund grant amounts of, 
     in addition to any such grant amounts, not less than the 
     following amount:
       ``(A) State, local, or private resources.--To the extent 
     that such contributed amounts are derived from State, local, 
     or private resources, 12.5 percent of such grant amounts.
       ``(B) Federal amounts.--To the extent that such contributed 
     amounts are derived from State- or locally-controlled amounts 
     from Federal assistance, or from amounts made available under 
     the affordable housing program of a Federal Home Loan Bank 
     pursuant to section 10(j) of the Federal Home Loan Bank Act 
     (12 U.S.C. 1430(j)), 25 percent of such grant amounts.

     Nothing in this paragraph may be construed to prevent a 
     grantee or recipient from complying with this paragraph only 
     by contributions in accordance with subparagraph (A), only by 
     contributions in accordance with subparagraph (B), or by a 
     combination of such contributions.
       ``(2) Reduction or waiver for recipients in fiscal 
     distress.--The Secretary may reduce or waive the requirement 
     under paragraph (1) with respect to any grantee that the 
     Secretary determines, pursuant to such demonstration by the 
     recipient as the Secretary shall require, is in fiscal 
     distress. The Secretary shall make determinations regarding 
     fiscal distress for purposes of this paragraph in the same 
     manner, and according to the same criteria, as fiscal 
     distress is determined with respect to jurisdictions under 
     section 220(d) (42 U.S.C. 12750(d)).
       ``(3) Qualification of services funding for match.--For 
     purposes of meeting the requirements of paragraph (1), 
     amounts that a grantee, recipient, or other governmental or 
     private agency or entity commits to contribute to provide 
     services to residents of affordable housing provided using 
     grant amounts under this subtitle, by entering into a binding 
     commitment for such contribution as the Secretary shall 
     require, shall be considered contributions to eligible 
     activities. Amounts to be considered eligible contributions 
     under this paragraph shall not exceed 33 percent of the total 
     cost of the eligible activity.
       ``(4) Reduction or waiver for certain activities.--With 
     respect to Trust Fund grant amounts made available for a 
     fiscal year, the Secretary shall reduce or waive the amount 
     of contributions otherwise required under paragraph (1) to be 
     made with respect to eligible activities to be carried out 
     with such grant amounts and for which any variance from 
     zoning laws or other waiver of regulatory requirements was 
     approved by the local jurisdiction. Such reduction may be 
     implemented in the year following the year in which such 
     activities are funded with Trust Fund grant amounts.
       ``(5) Waiver for disaster areas.--In the case of any area 
     that is subject to a declaration by the President of a major 
     disaster or emergency under the Robert T. Stafford Disaster 
     Relief and Emergency Assistance Act (42 U.S.C. 5121), the 
     Secretary shall, for the fiscal year following such 
     declaration, waive the requirement under paragraph (1) with 
     respect to any eligible activities to be carried out in such 
     area.
       ``(g) Competitive Grants for Indian Tribes.--For each 
     fiscal year referred to in section 293(a), the Secretary 
     shall, using amounts allocated for Indian tribes pursuant to 
     subsection (a)(2)(B) or (c)(2), as applicable, and subject to 
     subsection (f), make grants to Indian tribes on a competitive 
     basis, based upon such criteria as the Secretary shall 
     establish, which shall include the factors specified in 
     section 295(c)(2)(B).
       ``(h) Use by State of Unused Funds of Local 
     Jurisdictions.--If any participating local jurisdiction for 
     which an allocation is made for a fiscal year pursuant to 
     this section notifies the Secretary of an intent not to use 
     all or part of such funds, any such funds that will not be 
     used by the jurisdiction shall be added to the grant award 
     under subsection (e) for the State in which such jurisdiction 
     is located.
       ``(i) Competitive Grants for Areas Without Allocation Plans 
     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 areas not submitting allocation 
     plans.--With respect to each State, insular area, or 
     participating local jurisdiction that has not, before the 
     expiration of the 12-month period beginning upon the date of 
     the publication of the notice of funding availability for 
     such fiscal year under subsection (b)(4), submitted to and 
     had approved by the Secretary an allocation plan for such 
     fiscal year meeting the requirements of section 295, the 
     amount of the allocation for such State, insular area, or 
     participating local jurisdiction for such fiscal year 
     determined under this section.
       ``(B) Unmatched portion of allocation.--With respect to any 
     grantee for which the Trust Fund grant amount awarded for 
     such fiscal year is reduced from the amount of the allocation 
     determined under this section for the grantee by reason of 
     failure comply with the requirements under subsection (f), 
     the amount by which such allocation for the grantee for the 
     fiscal year exceeds the Trust Fund grant amount for the 
     grantee for the fiscal year.
       ``(C) Uncommitted amounts.--Any Trust Fund grant amounts 
     for a fiscal year that are not committed for use for eligible 
     activities before the expiration of the 24-month period 
     beginning upon the date of the publication of the notice of 
     availability of amounts under subsection (b)(4) for such 
     fiscal year.
       ``(D) Unused amounts.--Any Trust Fund grant amounts for 
     which the grantee notifies the Secretary that such funds will 
     not be used under this subtitle.
       ``(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 regional consortia of units of local government) 
     to submit applications, during the 9-month period beginning 
     upon publication of a notice of funding availability under 
     paragraph (2) for a fiscal year, for a grant of all or a 
     portion of the amounts referred to in paragraph (1) for such 
     fiscal year. Such an application shall include a 
     certification that the applicant will comply with all 
     requirements of this subtitle applicable to a grantee under 
     this subsection.
       ``(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 or insular area, as applicable, 
     for which such grant funds were originally allocated under 
     this section.
       ``(5) Award and use of grant assistance.--
       ``(A) Award.--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) Use.--Amounts from a grant under this subsection 
     shall be Trust Fund grant amounts for purposes of this 
     subtitle.

     ``SEC. 295. ALLOCATION PLANS.

       ``(a) In General.--Each grantee that is a State, insular 
     area, participating local jurisdiction, or grantee under 
     section 294(i) for a fiscal year, shall establish an 
     allocation plan in accordance with this section for the 
     distribution of Trust Fund grant amounts provided to the 
     grantee for such fiscal year, which shall be a plan that--
       ``(1) provides for use of such amounts in accordance with 
     section 296;

[[Page 26976]]

       ``(2) is based on priority housing needs, including 
     priority housing needs in rural areas, as determined by the 
     grantee; and
       ``(3) is consistent with the comprehensive housing 
     affordability strategy under section 105 (42 U.S.C. 12705) or 
     any applicable consolidated submission used for purposes of 
     applying for other community planning and development and 
     housing assistance programs administered by the Secretary, 
     for the applicable State, insular area, jurisdiction, or 
     grantee under section 294(i).
       ``(b) Establishment.--In establishing an allocation plan, a 
     grantee described in subsection (a) 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.
       ``(c) Contents.--Each allocation plan of a grantee 
     described in subsection (a) shall comply with the following 
     requirements:
       ``(1) Application requirements for eligible recipients.--
     The allocation plan shall set forth the requirements for 
     eligible recipients to apply to the grantee to receive 
     assistance from Trust Fund grant amounts of the grantee for 
     use for eligible activities, including a requirement that 
     each such application include--
       ``(A) a description of the eligible activities to be 
     conducted using such assistance; and
       ``(B) a certification by the eligible recipient applying 
     for such assistance that any housing assisted with such grant 
     amounts will comply with--
       ``(i) all of the requirements under this subtitle, 
     including the targeting requirements under section 296(c) and 
     the affordable housing requirements under section 297;
       ``(ii) section 808(d) of the Fair Housing Act (relating to 
     the obligation to affirmatively further fair housing); and
       ``(iii) section 504 of the Rehabilitation Act of 1973 
     (relating to prohibition of discrimination on the basis of 
     disability).
       ``(2) Selection process and criteria for assistance.--
       ``(A) Selection process.--The allocation plan shall set 
     forth a process for the grantee to select eligible activities 
     meeting the grantee's priority housing needs for funding with 
     Trust Fund grant amounts of the grantee, which shall comply 
     with requirements for such process as the Secretary shall, by 
     regulation, establish.
       ``(B) Selection criteria.--The allocation plan shall set 
     forth the factors for consideration in selecting among 
     applicants that meet the application requirements established 
     pursuant to paragraph (1), which shall provide for geographic 
     diversity among eligible activities to be assisted with Trust 
     Fund grant amounts of the grantee and shall include--
       ``(i) the merits of the proposed eligible activity of the 
     applicant, including the extent to which the activity 
     addresses housing needs identified in the allocation plan of 
     the grantee and the applicable comprehensive housing 
     affordability strategy or consolidated submission referred to 
     in subsection (a)(3);
       ``(ii) the experience of the applicant, including its 
     principals, in carrying out projects similar to the proposed 
     eligible activity;
       ``(iii) the ability of the applicant to obligate grant 
     amounts for the proposed eligible activities and to undertake 
     such activities in a timely manner;
       ``(iv) the extent of leveraging of funds by the applicant 
     from private and other non-Federal sources for carrying out 
     the eligible activities to be funded with Trust Fund grant 
     amounts, 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;
       ``(v) the extent of local assistance that will be provided 
     in carrying out the eligible activities, including financial 
     assistance;
       ``(vi) the efficiency of total project fund use as measured 
     by the cost per unit of the proposal, as adjusted by factors 
     which shall include whether the funding with Trust Fund grant 
     amounts is for new construction, rehabilitation, 
     preservation, or homeownership assistance, whether the 
     project involves supportive housing, differences in 
     construction and rehabilitation costs in different areas of 
     the grantee, and other appropriate adjustments;
       ``(vii) the degree to which the project in which the 
     affordable housing will be located will have residents of 
     various incomes;
       ``(viii) the extent of employment and other economic 
     opportunities for low-income families in the area in which 
     the housing will be located;
       ``(ix) 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;
       ``(x) 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;
       ``(xi) the extent to which the percentage of the housing 
     located in such county that is extremely old housing exceeds 
     35 percent;
       ``(xii) the extent to which the housing assisted with the 
     grant amounts will be accessible to persons with 
     disabilities;
       ``(xiii) 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;
       ``(xiv) the extent to which the applicant has provided that 
     assistance from 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; and
       ``(xv) the extent to which the housing assisted with grant 
     amounts will comply with energy efficiency standards and the 
     national Green Communities criteria checklist for residential 
     construction that provides criteria for the design, 
     development, and operation of affordable housing, as the 
     Secretary shall by regulation provide.

     A grantee may allocate a portion of funds under this section 
     for use by such grantee for eligible activities pursuant to 
     the selection process under subparagraph (A).
       ``(3) Performance goals, benchmarks, and timetables.--The 
     allocation plan shall include performance goals, benchmarks, 
     and timetables for the grantee for the conducting of eligible 
     activities with Trust Fund grant amounts that comply with 
     requirements and standards for such goals, benchmarks, and 
     timetables as the Secretary shall, by regulation, establish.
       ``(d) Review and Approval by Secretary.--
       ``(1) Submission.--A grantee described in subsection (a) 
     shall submit an allocation plan for the fiscal year for which 
     the grant is made to the Secretary not later than the 
     expiration of the 6-month period beginning upon the notice of 
     funding availability under section 294(b)(4) for such fiscal 
     year amounts.
       ``(2) Review and approval or disapproval.--The Secretary 
     shall review and approve or disapprove an allocation plan not 
     later than the expiration of the 3-month period beginning 
     upon submission of the plan.
       ``(3) Standard for disapproval.--The Secretary may 
     disapprove an allocation plan only if the plan fails to 
     comply with requirements of this section or section 296.
       ``(4) Resubmission upon disapproval.--If the Secretary 
     disapproves a plan, the grantee may submit to the Secretary a 
     revised plan for review and approval or disapproval under 
     this subsection.
       ``(5) Timing for fiscal year 2008.--With respect only to 
     fiscal year 2008, the Secretary may extend each of the 
     periods referred to in paragraphs (1) and (2), and the period 
     referred to in section 294(i)(1)(A), by not more than 6 
     months.

     ``SEC. 296. USE OF ASSISTANCE BY RECIPIENTS.

       ``(a) Distribution to Recipients; Use Requirements.--Each 
     grantee shall distribute Trust Fund grant amounts of the 
     grantee to eligible recipients for use in accordance with 
     this section. Trust Fund grant amounts of a grantee may be 
     used, or committed for use, only for eligible activities 
     that--
       ``(1) are conducted in the jurisdiction of the grantee;
       ``(2) in the case of a grantee that is a State, insular 
     area, participating local jurisdiction, or grantee under 
     section 294(i), comply with the allocation plan of the 
     grantee under section 295;
       ``(3) are selected for funding by the grantee in accordance 
     with the process and criteria for such selection established 
     pursuant to section 295(c)(2); and
       ``(4) comply with the targeting requirements under 
     subsection (c) of this section and the affordable housing 
     requirements under section 297.
       ``(b) Eligible Recipients.--Trust Fund grant amounts of a 
     grantee may be provided only to an organization, agency, or 
     other entity (including a for-profit entity, a nonprofit 
     entity, a faith-based organization, a community development 
     financial institution, a community development corporation, 
     and a State or local housing trust fund) that--
       ``(1) demonstrates the experience, ability, and capacity 
     (including financial capacity) to undertake, comply, and 
     manage the eligible activity;
       ``(2) demonstrates its familiarity with the requirements of 
     any other Federal, State or local housing program that will 
     be used in conjunction with such grant amounts to ensure 
     compliance with all applicable requirements and regulations 
     of such programs; and
       ``(3) makes such assurances to the grantee as the Secretary 
     shall, by regulation, require to ensure that the recipient 
     will comply with the requirements of this subtitle during the 
     entire period that begins upon selection of the recipient to 
     receive such grant amounts and ending upon the conclusion of 
     all eligible activities that are engaged in by the recipient 
     and funded with such grant amounts.
       ``(c) Targeting Requirements.--The targeting requirements 
     under this subsection are as follows:
       ``(1) Requirement of use of all amounts for affordable 
     housing for low-income families.--All Trust Fund grant 
     amounts of a grantee shall be distributed for use only for 
     eligible activities relating to affordable housing that are 
     for the benefit only of families 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 or insular 
     area in which the housing is located, as determined by the 
     Secretary with adjustments for smaller and larger families.
       ``(2) Use of 75 percent for affordable housing for 
     extremely low-income families.--Not less than 75 percent of 
     the Trust

[[Page 26977]]

     Fund grant amounts of a grantee for each fiscal year shall be 
     used only for eligible activities relating to affordable 
     housing that are for the benefit only of families whose 
     incomes do not exceed the higher of--
       ``(A) 30 percent of 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 poverty line (as such term is defined in section 
     673 of the Omnibus Budget Reconciliation Act of 1981 (42 
     U.S.C. 9902), including any revision required by such 
     section) applicable to a family of the size involved.
       ``(3) Use of 30 percent for affordable housing for very 
     poor families.--Not less than 30 percent of the Trust Fund 
     grant amounts of a grantee for each fiscal year shall be used 
     only for eligible activities relating to affordable housing 
     that are for the benefit only of families whose incomes do 
     not exceed the maximum amount of income that an individual or 
     family could have, taking into consideration any income 
     disregards, and remain eligible for benefits under the 
     Supplemental Security Income program under title XVI of the 
     Social Security Act (42 U.S.C. 1381 et seq.).
       ``(4) Use of 10 percent for affordable housing for families 
     above 50 percent of area median income.--Not less than 10 
     percent of the Trust Fund grant amounts of a grantee for each 
     fiscal year shall be used only for eligible activities 
     relating to affordable housing that are for the benefit only 
     of families whose incomes exceed 50 percent of 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.
       ``(5) Limitation for years in which less than $2 billion is 
     available.--If, for any fiscal year, the total amount 
     available pursuant to section 293(a) for assistance under 
     this subtitle is less than $2,000,000,000, in addition to the 
     other requirements under this subsection, all such amounts 
     shall be used only for eligible activities relating to 
     affordable housing that are for the benefit only of families 
     whose incomes do not exceed 60 percent of 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.
       ``(6) Review of targeting requirements.--The Secretary 
     shall assess the need for, and the appropriateness of, the 
     requirements under paragraphs (1) through (4) and shall 
     submit a report to the Congress on the results of the 
     assessment not later than October 1, 2012, and not later than 
     the expiration of the 5-year period beginning upon such date 
     and each successive 5-year period thereafter. In each such 
     report, the Secretary shall identify and make recommendations 
     regarding the continuation or adjustment of the targeting 
     requirements in paragraphs (1) through (4).
       ``(d) Use for Rural Areas.--Of the Trust Fund grant amounts 
     for any fiscal year for any grantee that is a State or 
     participating local jurisdiction that includes any rural 
     areas, the State or participating local jurisdiction shall 
     use a portion for eligible activities located in rural areas 
     that is proportionate to the identified need for such 
     activities in such rural areas.
       ``(e) Cost Limits.--The Secretary shall establish 
     limitations on the amount of Trust Fund 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) (42 U.S.C. 
     12742(e)), as adjusted annually, and established by number of 
     bedrooms, market area, and eligible activity.
       ``(f) Forms of Assistance.--
       ``(1) In general.--Assistance may be distributed pursuant 
     to this section in the form of--
       ``(A) capital grants, noninterest-bearing or low-interest 
     loans or advances, deferred payment loans, guarantees, and 
     loan loss reserves;
       ``(B) in the case of assistance for ownership of one- to 
     four-family owner-occupied housing, downpayment assistance, 
     closing cost assistance, and assistance for interest rate 
     buy-downs; and
       ``(C) any other forms of assistance approved by the 
     Secretary.
       ``(2) Repayments.--If a grantee awards assistance under 
     this section in the form of a loan or other mechanism by 
     which funds are later repaid to the grantee, any repayments 
     and returns received by the grantee shall be distributed by 
     the grantee in accordance with the allocation plan under 
     section 295 for the grantee for the fiscal year in which such 
     repayments are made or returns are received.
       ``(g) Coordination With Other Assistance.--In distributing 
     assistance pursuant to this section, each grantee shall, to 
     the maximum extent practicable, coordinate such distribution 
     with the provision of other Federal, State, tribal, 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 subtitles A through F 
     (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.);
       ``(7) assistance made available under section 101 of the 
     Native American Housing Assistance and Self-Determination Act 
     of 1996 (25 U.S.C. 4111);
       ``(8) assistance made available from any State or local 
     housing trust fund established to provide or assist in making 
     available affordable housing; and
       ``(9) any other housing assistance programs.
       ``(h) Prohibited Uses.--The Secretary shall--
       ``(1) by regulation, set forth prohibited uses of grant 
     amounts under this subtitle, which shall include use for--
       ``(A) political activities;
       ``(B) advocacy;
       ``(C) lobbying, whether directly or through other parties;
       ``(D) counseling services;
       ``(E) travel expenses; and
       ``(F) preparing or providing advice on tax returns;
       ``(2) by regulation, provide that, except as provided in 
     paragraph (3), grant amounts under this subtitle may not be 
     used for administrative, outreach, or other costs of--
       ``(A) a grantee; or
       ``(B) any recipient of such grant amounts; and
       ``(3) by regulation, limit the amount of any Trust Fund 
     grant amounts for a fiscal year that may be used for 
     administrative costs of the grantee of carrying out the 
     program required under this subtitle to a percentage of such 
     grant amounts of the grantee for such fiscal year, which may 
     not exceed 10 percent.
       ``(i) Labor Standards.--Each grantee receiving Trust Fund 
     grant amounts shall ensure that contracts for eligible 
     activities assisted with such amounts comply with the same 
     requirements under section 286 (42 U.S.C. 12836) that are 
     applicable to contracts for construction of affordable 
     housing assisted under subtitles A and D.
       ``(j) Compliance With Other Federal Laws.--All amounts from 
     the Trust Fund shall be allocated in accordance with, and any 
     eligible activities carried out in whole or in part with 
     grant amounts under this subtitle (including housing provided 
     with such grant amounts) shall comply with and be operated in 
     compliance with, other applicable provisions of Federal law, 
     including--
       ``(1) laws relating to tenant protections and tenant rights 
     to participate in decision making regarding their residences;
       ``(2) laws requiring public participation, including laws 
     relating to Consolidated Plans, Qualified Allocation Plans, 
     and Public Housing Agency Plans; and
       ``(3) fair housing laws and laws regarding accessibility in 
     federally assisted housing, including section 504 of the 
     Rehabilitation Act of 1973.

     ``SEC. 297. AFFORDABLE HOUSING.

       ``(a) Rental Housing.--A rental dwelling unit (which may 
     include a dwelling unit in 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)) or in 
     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.A. 216(b))), shall be considered affordable 
     housing for purposes of this subtitle only if the dwelling 
     unit is subject to legally binding commitments that ensure 
     that the dwelling unit meets all of the following 
     requirements:
       ``(1) Rents.--The dwelling unit bears a rent not greater 
     than the lesser of--
       ``(A) 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
       ``(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 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.
       ``(2) 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.
       ``(3) 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.
       ``(4) Mixed income.--
       ``(A) 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 296(c)(2), as 
     determined at a reasonable time before occupancy.
       ``(B) Rehabilitation.--In the case of a dwelling unit in a 
     project for which Trust Fund grant amounts are used for the 
     rehabilitation of the project, the dwelling unit is located 
     in a project in which the percentage of units being rented 
     upon completion of the rehabilitation to families with 
     incomes described in section 296(c)(2) may not exceed the 
     higher of 50 percent

[[Page 26978]]

     or the percentage of such families occupying the project at 
     the time funds are awarded for such project.
       ``(C) Exceptions.--Subparagraph (A) shall not apply in the 
     case of a project having 25 or fewer 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.
       ``(5) Visitability.--To the extent the dwelling unit is not 
     required under Federal law to comply with standards relating 
     to accessibility to persons with disabilities, the dwelling 
     unit complies with such basic visitability standards as the 
     Secretary shall by regulation provide.
       ``(6) Duration of use.--The dwelling unit will continue to 
     be subject to all requirements under this subsection for not 
     less than 50 years.
       ``(b) Owner-Occupied Housing.--For purposes of any eligible 
     activity involving one- to four-family owner-occupied housing 
     (which may 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.A. 216(b))), such a 
     residence shall be considered affordable housing for purposes 
     of this subtitle only if--
       ``(1) in the case of housing to be made available for 
     purchase--
       ``(A) the housing is available for purchase only for use as 
     a principal residence by families that qualify as first-time 
     homebuyers, as such term is defined in section 104 (42 U.S.C. 
     12704), except that any reference in such section to 
     assistance under title II of this Act shall for purposes of 
     this section be considered to refer to assistance from Trust 
     Fund grant amounts;
       ``(B) the housing has an initial purchase price that meets 
     the requirements of section 215(b)(1); and
       ``(C) the housing is subject to the same resale 
     restrictions established under section 215(b)(3) and 
     applicable to the participating jurisdiction that is the 
     State in which such housing is located; and
       ``(2) the housing is made available for purchase only by, 
     or in the case of assistance to a homebuyer pursuant to this 
     subsection, the assistance is made available only to, 
     homebuyers who have, before purchase, completed a program of 
     counseling with respect to the responsibilities and financial 
     management involved in homeownership that is approved by the 
     Secretary; except that the Secretary may, at the request of a 
     State, waive the requirements of this paragraph with respect 
     to a geographic area or areas within the State if--
       ``(A) the travel time or distance involved in providing 
     counseling with respect to such area or areas, as otherwise 
     required under this paragraph, on an in-person basis is 
     excessive or the cost of such travel is prohibitive; and
       ``(B) the State provides alternative forms of counseling 
     for such area or areas, which may include interactive 
     telephone counseling, on-line counseling, interactive video 
     counseling, and interactive home study counseling and a 
     program of financial literacy and education to promote an 
     understanding of consumer, economic, and personal finance 
     issues and concepts, including saving for retirement, 
     managing credit, long-term care, and estate planning and 
     education on predatory lending, identity theft, and financial 
     abuse schemes relating to homeownership that is approved by 
     the Secretary, except that entities providing such counseling 
     shall not discriminate against any particular form of 
     housing.
       ``(c) Priority for Families on Section 8 or Public Housing 
     Waiting List for 12 Months or Longer.--A dwelling unit in 
     rental housing or owner-occupied housing shall be considered 
     affordable housing for purposes of this subtitle only if the 
     dwelling unit is subject to such requirements, as the 
     Secretary shall provide, to ensure that priority for 
     occupancy in or, in the case of owner-occupied housing, 
     purchase of, the dwelling unit is provided to families who 
     are eligible for rental assistance under section 8 of the 
     United States Housing Act of 1937 (42 U.S.C. 1437f) or 
     occupancy in public housing assisted under such Act, and have 
     applied to a public housing agency for such assistance or 
     occupancy, as applicable, and been on a waiting list of a 
     public housing agency for such assistance or occupancy, as 
     applicable, for at least 12 consecutive months.

     ``SEC. 298. OTHER PROVISIONS.

       ``(a) 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 
     subtitles A through F of this title, if the project does not 
     exceed the cost limits established pursuant to section 
     296(e).
       ``(b) Accountability of Grantees and Recipients.--
       ``(1) Recipients.--
       ``(A) Tracking of funds.--The Secretary shall--
       ``(i) require each grantee to develop and maintain a system 
     to ensure that each recipient of assistance from Trust Fund 
     grant amounts of the grantee uses such amounts in accordance 
     with this subtitle, the regulations issued under this 
     subtitle, and any requirements or conditions under which such 
     amounts were provided; and
       ``(ii) establish minimum requirements for agreements, 
     between the grantee and recipients, regarding assistance from 
     the Trust Fund grant amounts of the grantee, which shall 
     include--

       ``(I) appropriate continuing financial and project 
     reporting, record retention, and audit requirements for the 
     duration of the grant to the recipient to ensure compliance 
     with the limitations and requirements of this subtitle and 
     the regulations under this subtitle; and
       ``(II) any other requirements that the Secretary determines 
     are necessary to ensure appropriate grant administration and 
     compliance.

       ``(B) Misuse of funds.--
       ``(i) Reimbursement requirement.--If any recipient of 
     assistance from Trust Fund grant amounts of a grantee is 
     determined, in accordance with clause (ii), to have used any 
     such amounts in a manner that is materially in violation of 
     this subtitle, the regulations issued under this subtitle, or 
     any requirements or conditions under which such amounts were 
     provided--

       ``(I) such recipient shall be ineligible for any further 
     assistance from any Trust Fund grant amounts of any grantee 
     during the period that begins upon such determination and 
     ends upon reinstatement by the Secretary of the eligibility 
     of recipient for such assistance, except that the Secretary 
     may reinstate such an ineligible recipient only pursuant to 
     application by the recipient for such reinstatement and the 
     recipient may not apply to the Secretary for such 
     reinstatement during the 12-month period, or the 10-year 
     period in the case of a second or subsequent such 
     determination, beginning upon such determination; and
       ``(II) the grantee shall require that, within 12 months 
     after the determination of such misuse, the recipient shall 
     reimburse the grantee for such misused amounts and return to 
     the grantee any amounts from the Trust Fund grant amounts of 
     the grantee that remain unused or uncommitted for use.

     The remedies under this clause are in addition to any other 
     remedies that may be available under law.
       ``(ii) Determination.--A determination is made in 
     accordance with this clause if the determination is--

       ``(I) made by the Secretary; or
       ``(II)(aa) made by the grantee;
       ``(bb) the grantee provides notification of the 
     determination to the Secretary for review, in the discretion 
     of the Secretary, of the determination; and
       ``(cc) the Secretary does not subsequently reverse the 
     determination.

       ``(2) Grantees.--
       ``(A) Report.--
       ``(i) In general.--The Secretary shall require each grantee 
     receiving Trust Fund grant amounts for a fiscal year to 
     submit a report, for such fiscal year, to the Secretary 
     that--

       ``(I) describes the activities funded under this subtitle 
     during such year with the Trust Fund grant amounts of the 
     grantee; and
       ``(II) the manner in which the grantee complied during such 
     fiscal year with the allocation plan established pursuant to 
     section 295 for the grantee.

       ``(ii) Public availability.--The Secretary shall make such 
     reports pursuant to this subparagraph publicly available.
       ``(B) Misuse of funds.--If the Secretary determines, after 
     reasonable notice and opportunity for hearing, that a grantee 
     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--
       ``(i) reduce the amount of assistance under this section to 
     the grantee by an amount equal to the amount of Trust Fund 
     grant amounts which were not used in accordance with this 
     subtitle;
       ``(ii) require the grantee to repay the Secretary an amount 
     equal to the amount of the Trust Fund grant amounts which 
     were not used in accordance with this subtitle;
       ``(iii) limit the availability of assistance under this 
     subtitle to the grantee to activities or recipients not 
     affected by such failure to comply; or
       ``(iv) terminate any assistance under this subtitle to the 
     grantee.

     ``SEC. 299. DEFINITIONS.

       ``For purposes of this subtitle, the following definitions 
     shall apply:
       ``(1) Eligible activities.--The term `eligible activities' 
     means activities relating to the construction, preservation, 
     or rehabilitation of affordable rental housing or affordable 
     one- to four-family owner-occupied 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) use of funds to facilitate affordability for homeless 
     and other extremely low-income households of dwelling units 
     assisted with Trust Fund grant amounts, in a combined amount 
     not to exceed 20 percent of the project grant amount, for--
       ``(i) project-based rental assistance for not more than 12 
     months for a project assisted with Trust Fund grant amounts;
       ``(ii) project operating reserves for use to cover the loss 
     of rental assistance or in conjunction with a project loan; 
     or
       ``(iii) project operating accounts used to cover net 
     operating income shortfalls for dwelling units assisted with 
     Trust Fund grant amounts;
       ``(F) providing incentives to maintain existing housing 
     (including manufactured housing) as affordable housing and to 
     establish or extend any low-income affordability restrictions 
     for

[[Page 26979]]

     such housing, including covering capital expenditures and 
     costs of establishing community land trusts to provide sites 
     for manufactured housing provided such incentives; and
       ``(G) in the case of affordable one- to four-family owner-
     occupied housing, downpayment assistance, closing cost 
     assistance, and assistance for interest rate buy-downs.
       ``(2) Eligible recipient.--The term `eligible recipient' 
     means an entity that meets the requirements under section 
     296(b) for receipt of Trust Fund grant amounts of a grantee.
       ``(3) Extremely low vacancy rate.--The term `extremely low 
     vacancy rate' means a housing or rental vacancy rate of 2 
     percent or less.
       ``(4) Extremely old housing.--The term `extremely old 
     housing' means housing that is 45 years old or older.
       ``(5) Families.--The term `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)).
       ``(6) Fiscal distress; severe fiscal distress.--The terms 
     `fiscal distress' and `severe fiscal distress' have the 
     meanings given such terms in section 220(d).
       ``(7) Grantee.--The term `grantee' means--
       ``(A) a State, insular area, or participating local 
     jurisdiction for which a grant is made under section 294(e);
       ``(B) an Indian tribe for which a grant is made under 
     section 294(g); or
       ``(C) a nonprofit or public entity for which a grant is 
     made under section 294(i).
       ``(8) Indian tribe.--The term `Indian tribe' means a 
     federally recognized Indian tribe.
       ``(9) Insular area.--The term `insular area' has the 
     meaning given such term in section 104.
       ``(10) Participating local jurisdiction.--The term 
     `participating local jurisdiction' means, with respect to a 
     fiscal year--
       ``(A) any unit of general local government (as such term is 
     defined in section 104 (42 U.S.C. 12704) that qualifies as a 
     participating jurisdiction under section 216 (42 U.S.C. 
     12746) for such fiscal year; and
       ``(B) at the option of such a consortium, any consortium of 
     units of general local governments that is designated 
     pursuant to section 216 (42 U.S.C. 12746) as a participating 
     jurisdiction for purposes of title II.
       ``(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) Recipient.--The term `recipient' means an entity 
     that receives assistance from a grantee, pursuant to section 
     296(a), from Trust Fund grant amounts of the grantee.
       ``(13) Rural area.--The term `rural area' has the meaning 
     given such term in section 520 of the Housing Act of 1949 (42 
     U.S.C. 1490).
       ``(14) Secretary.--The term `Secretary' means the Secretary 
     of Housing and Urban Development.
       ``(15) State.--The term `State' has the meaning given such 
     term in section 104.
       ``(16) Trust fund.--The term `Trust Fund' means the 
     National Affordable Housing Trust Fund established under 
     section 292.
       ``(17) Trust fund grant amounts.--The term `Trust Fund 
     grant amounts' means amounts from the Trust Fund that are 
     provided to a grantee pursuant to subsection (e), (g), or (i) 
     of section 294.

     ``SEC. 299A. INAPPLICABILITY OF HOME PROVISIONS.

       ``Except as specifically provided otherwise 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. 299B. REGULATIONS.

       ``Not later than 6 months after the date of enactment of 
     the National Affordable Housing Trust Fund Act of 2007, the 
     Secretary of Housing and Urban Development shall promulgate 
     regulations to carry out this subtitle, which shall include 
     regulations establishing the affordable housing needs formula 
     in accordance with section 294(a).''.
       (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''.

  The CHAIRMAN. No amendment to the committee amendment is in order 
except those printed in House Report 110-369. Each amendment may be 
offered only in the order printed in the report, by a Member designated 
in the report, shall be considered read, shall be debatable for the 
time specified in the report, equally divided and controlled by the 
proponent and an opponent of the amendment, shall not be subject to 
amendment, and shall not be subject to a demand for division of the 
question.


         Amendment No. 1 Offered by Mr. Frank of Massachusetts

  The CHAIRMAN. It is now in order to consider amendment No. 1 printed 
in House Report 110-369.
  Mr. FRANK of Massachusetts. Mr. Chairman, I offer an amendment.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 1 offered by Mr. Frank of Massachusetts:
       Page 14, strike lines 14 through 16, and insert the 
     following:
       ``(1) States.--Subject to subsection (d), the allocation 
     for a State shall be as follows:
       ``(A) Minimum amount.--If the formula amount determined 
     under subsection (b)(2) for the State for the fiscal year is 
     less than 0.5 percent of the total amount allocated for such 
     fiscal year under section 293(b)(1), the allocation for the 
     State shall be 0.5 percent of the total amount allocated for 
     such fiscal year under section 293(b)(1).
       ``(B) Formula amount.--If the formula amount determined 
     under subsection (b)(2) for the State for the fiscal year is 
     0.5 percent or more of the total amount allocated for such 
     fiscal year under section 293(b)(1), the allocation for the 
     State shall be the formula amount for the State, except 
     that--
       ``(i) the Secretary shall reduce such formula amounts for 
     all States whose allocations are determined under this 
     subparagraph on a pro rata basis, except as provided in 
     clause (ii), by the amount necessary to account for any 
     increases from the formula amount for allocations made under 
     subparagraph (A), so that the total of the allocations for 
     all States pursuant to this paragraph is equal to the 
     aggregate of the formula amounts under subsection (b)(2) for 
     all States; and
       ``(ii) no reduction pursuant to clause (i) for any State 
     may reduce the formula amount for the State to less than 0.5 
     percent of such total amount allocated for such fiscal 
     year.''.
       Page 15, strike lines 8 through 10, and insert the 
     following:
       ``(1) for each participating local jurisdiction having a 
     formula amount for such fiscal year of less than $750,000, 
     the allocation shall be $0, except that the allocation for 
     such a jurisdiction for such fiscal year shall be the formula 
     amount for the jurisdiction for such fiscal year if--
       ``(A) the Secretary''
       Page 15, strike the comma in line 20 and all that follows 
     through line 22, and insert ``; or''.
       Page 15, after line 22, insert the following:
       ``(B) the formula amount for such jurisdiction for such 
     fiscal year is an amount that is greater than the formula 
     amount for such fiscal year for any other participating local 
     jurisdiction that is located in the same State; and''.
       Page 42, strike lines 21 through 25, and insert the 
     following:
       ``(A) In general.--The dwelling unit is located in a 
     project (i) that receives assistance under this subtitle, and 
     (ii) for which not more than 50 percent of the rental units 
     in the project that are not previously occupied may be rented 
     initially only to''.
       Strike line 15 on page 43 and all that follows through page 
     44, line 3, and insert the following:
       ``(B) Exceptions.--Subparagraph (A) shall not apply in the 
     case of a project that--
       ``(i) has 25 or fewer dwelling units and 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 disabled families; or

       ``(ii) is specifically made available only for households 
     comprised of elderly families.''.
       Page 51, line 5, after ``that'' insert ``describes''.
       Page 51, line 6, strike ``describes''.
       At the end of the bill, insert the following new section:

     ``SECTION 299C. BENEFITS.

       ``Nothing in this subtitle allows any payments under this 
     subtitle for any individual or head of household that is not 
     a legal resident.''

  The CHAIRMAN. Pursuant to House Resolution 720, the gentleman from 
Massachusetts (Mr. Frank) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from Massachusetts.
  Mr. FRANK of Massachusetts. Mr. Chairman, I don't believe any of 
these are controversial.
  The first thing we do, we had in the committee an adoption of an 
amount, a minimum amount that would go to each State. Remember, this is 
largely a distribution to the States. It's not an existing Federal. 
This would not be administered at the Federal level. It would be sent 
to the States.
  And some of the smaller States raised a question, and the smaller 
communities that they might be excluded. Indeed, while this is not 
exactly what the gentleman from Florida (Mr. Bilirakis) had wanted to 
offer, which I thought was perfectly reasonable, it comes close to, it 
touches on the same area. So this would make sure that no State would 
go without, and at least one community in every State would get some 
funding.

[[Page 26980]]

  Next, we had a provision that really didn't make sense requiring a 
mixed income requirement in elderly projects. We didn't think that was 
reasonable, and we take it out.
  We have a clarification involving the number of units that go to 
people who are below 50 percent, and we say that applies to all units.
  And finally, in response to concerns in the House, we had language 
that could be better worded. It was somewhat hastily added at the last 
minute, and I hope it will be improved as we go forward, which seeks to 
say that no one who is in the country illegally should be allowed to be 
a resident of one of these projects.
  That's the manager's amendment.
  Mr. Chairman, I reserve the balance of my time.
  Mr. NEUGEBAUER. Mr. Chairman, we have no objection to the manager's 
amendment to H.R. 2895, the National Affordable Housing Trust Fund Act 
of 2007.
  I yield back my time.
  Mr. FRANK of Massachusetts. Mr. Chairman, I yield back the balance of 
my time with gratitude to my colleagues.
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from Massachusetts (Mr. Frank).
  The question was taken; and the Chairman announced that the ayes 
appeared to have it.
  Mr. FRANK of Massachusetts. Mr. Chairman, I demand a recorded vote.
  The CHAIRMAN. Pursuant to clause 6 of rule XVIII, further proceedings 
on the amendment offered by the gentleman from Massachusetts will be 
postponed.


         Amendment No. 2 Offered by Mr. Frank of Massachusetts

  The CHAIRMAN. It is now in order to consider amendment No. 2 printed 
in House Report 110-369.
  Mr. FRANK of Massachusetts. Mr. Chairman, I offer an amendment.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 2 offered by Mr. Frank of Massachusetts:
       Page 53, after line 20, insert the following:
       ``(F) use of funds to facilitate affordability for families 
     having incomes described in section 296(c)(3), in a combined 
     amount for a grantee in any fiscal year not to exceed 10 
     percent of the aggregate Trust Fund grant amounts provided to 
     the grantee for such fiscal year, for project operating 
     accounts used to cover net operating income shortfalls for 
     dwelling units assisted with Trust Fund grant amounts;''.
       Page 53, line 21, strike ``(F)'' and insert ``(G)''.
       Page 54, line 4, strike ``(G)'' and insert ``(H)''.

  The CHAIRMAN. Pursuant to House Resolution 720, the gentleman from 
Massachusetts (Mr. Frank) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from Massachusetts.
  Mr. FRANK of Massachusetts. Mr. Chairman, the gentlewoman from 
California, in consultation with a number of groups, put this forward, 
and it's to give more flexibility to the recipients.
  I yield to the gentlewoman from California who will explain the 
amendment.
  Ms. WATERS. Mr. Chairman, I rise in support of this amendment.
  Chairman Frank, I applaud you for your willingness to modify the 
trust fund proposal as it has moved through this Chamber to reflect the 
realities of the housing market while simultaneously keeping your eye 
on the prize, a significant increase in the production of affordable 
housing for the very poorest Americans. This amendment continues to 
maintain such a balance.
  Let me share some simple math with my colleagues. The monthly SSI 
payment in California is $836. As the Brooke amendment established, the 
Federal Government considers an affordable rent to be 30 percent of 
that income, or $250 per month. Nobody can operate housing anywhere in 
California, much less in high-cost areas like Los Angeles, for $250 per 
unit monthly. It doesn't matter whether you're a nonprofit or for-
profit or whether you have significant debt service on loans for the 
capital, or if someone has just handed you a brand new building for 
free. As the green eye shade types in the real estate business say, it 
just ``doesn't pencil out.''
  This need to address the operating cost shortfall in projects 
targeted to the lowest income folks, especially those at SSI income 
levels and below, is not news to those of us who have been fighting for 
a national affordable housing trust fund for over half a decade. Nor, 
to be clear, does it suggest that there's any shortage of need for 
plain old low-cost bricks and sticks capital grants which will comprise 
the vast majority of funding under H.R. 2895, even if this amendment is 
adopted. What has become clear, though, is that the State and local 
housing agencies need some flexibility with the trust fund dollars to 
address the operating shortfall issue in order for the trust fund to 
generate the greatest number of new units for the poorest, most 
disabled residents of trust fund projects.
  Critically, neither this amendment nor the underlying bill 
discourages grantees from seeking other sources of operating subsidies 
or rental assistance. Indeed, it requires as much. Even the full 10 
percent of the trust fund in a given year, should States and localities 
choose to use the maximum permitted to operate accounts, will not come 
close to providing the total amount of operating subsidy needed to 
achieve the trust fund's targeting goals. So grantees like my own 
California Housing Finance Agency or Los Angeles City Housing 
Department will have no choice but to leverage trust funds with section 
8, McKinney-Vento subsidies and State or local rental assistance 
programs.
  But this flexibility will ensure that some projects can move forward 
that otherwise could not in the current environment, where section 8, 
for example, has been under attack since the moment the trust fund 
movement began. That is the essence of the trust fund bill that you 
have championed, Chairman Frank, recognizing and overcoming the 
obstacles to affordable housing production for the poorest people in 
this country. This amendment is wholly consistent with that goal, and I 
urge my colleagues to support that.
  Mr. FRANK of Massachusetts. Mr. Chairman, I reserve the balance of my 
time.
  Mr. NEUGEBAUER. Mr. Chairman, I do not oppose this amendment. I think 
some of us had a concern early on that converting any of these monies 
to operating monies was a precedent we didn't want to move down. I 
think the purpose of the bill is to build housing. Although I believe 
this does help some of our very low income families, we would hope that 
they would not have to use any of that allocation for that. But this 
amendment does give them the flexibility to do that, and so we will 
support this amendment.
  Mr. Chairman, I yield back the balance of my time.
  Mr. FRANK of Massachusetts. I yield back the balance of my time.
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from Massachusetts (Mr. Frank).
  The amendment was agreed to.


           Amendment No. 3 Offered by Mr. Hastings of Florida

  The CHAIRMAN. It is now in order to consider amendment No. 3 printed 
in House Report 110-369.
  Mr. HASTINGS of Florida. Mr. Chairman, I have an amendment at the 
desk.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 3 offered by Mr. Hastings of Florida:
       Page 45, line 20, before the semicolon insert the 
     following: ``and includes counseling regarding financial 
     literacy, strategies to save money, qualifying for a mortgage 
     loan, methods to avoid predatory lenders and foreclosure, 
     and, where appropriate by region, any requirements and costs 
     associated with obtaining flood or other disaster-specific 
     insurance coverage''.

  The CHAIRMAN. Pursuant to House Resolution 720, the gentleman from 
Florida (Mr. Hastings) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from Florida.

[[Page 26981]]


  Mr. HASTINGS of Florida. Mr. Chairman, I rise today to offer an 
amendment to H.R. 2895. I commend Chairman Frank and Subcommittee 
Chairwoman Waters and the full committee for their work on this 
legislation, and particularly the work of Ranking Members Bachus and 
Biggert as well as those that I have complimented.
  The purpose of my amendment is to include flood and disaster specific 
insurance counseling in the home ownership counseling criteria for 
beneficiaries of the trust fund.
  I know that we're all concerned about the current instability in the 
housing market, and increasing foreclosure rates around this country, 
and especially in places like where I live. One of every 50 households 
in my congressional district have filed for foreclosure already this 
year. All of us know that that's unacceptable.
  Mr. Chairman, the unfortunate truth is that many of these 
foreclosures have come from a lack of financial literacy and limited 
understanding of all the costs associated with owning a home. In many 
regions of our Nation more prone to disasters, appropriate insurance is 
one of many added costs of homeownership that can push people to the 
edge.

                              {time}  1400

  And when you are on the edge, staying in your home or returning to 
your home after a disaster rests on having the right insurance.
  I don't even need to point out to the Members the tragedies of 
withheld insurance from many of the victims in Hurricane Katrina. 
Knowledge of the specifics and nuances in disaster and flood insurance 
policies will encourage further financial empowerment and homeownership 
stability among our Nation's most vulnerable populations.
  I urge Members to support the amendment.
  Mr. Chairman, my amendment reflects homeownership counseling criteria 
which I initially included in the Workforce Housing Act of 2006, a bill 
which I introduced last year.
  While my legislation from the 109th Congress focused on developing 
mortgage down-payment accounts and other development incentives, local 
and state housing trust funds have also been very effective in 
providing access to affordable housing. I applaud the approach of the 
National Affordable Housing Trust Fund Act of 2007, which will take 
these local successes even further.
  Once again, I commend my friends Chairman Frank and Chairwoman Waters 
for shepherding this legislation to the floor and considering my 
contribution to their fine work.
  I urge my colleagues to support this amendment and reserve the 
balance of my time.
  Mr. Chairman, I reserve the balance of my time.
  Mr. NEUGEBAUER. Mr. Chairman, I rise to claim the time in opposition, 
although I am not opposed to the amendment.
  The CHAIRMAN. Without objection, the gentleman from Texas is 
recognized for 5 minutes.
  There was no objection.
  Mr. NEUGEBAUER. Mr. Chairman, I think anytime that we can make sure 
that our people involved in housing, homeowners, renters, everybody, 
has the appropriate counseling is a good strategy, because in many 
cases what we find is people lose their assets or lose opportunities 
because they did not take advantage of some of the things that are 
available to them.
  So I thank the gentleman from Florida for introducing that amendment. 
We support his amendment.
  Mr. Chairman, I yield back the balance of my time.
  Mr. HASTINGS of Florida. Mr. Chairman, I yield back the balance of my 
time.
  The CHAIRMAN. The question is on the amendment offered by the 
gentleman from Florida (Mr. Hastings).
  The amendment was agreed to.


         Amendment No. 4 Offered by Mr. Frank of Massachusetts

  The CHAIRMAN. It is now in order to consider amendment No. 4 printed 
in House Report 110-369.
  Mr. FRANK of Massachusetts. Mr. Chairman, as the designee of the 
gentleman from Washington (Mr. Inslee), I offer an amendment.
  The CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 4 offered by Mr. Frank of Massachusetts:
       Page 29, line 16, strike ``and''.
       Page 29, line 24, strike the period and insert ``; and''.
       Page 29, after line 24, insert the following:
       ``(xvi) the extent to which the design, construction, and 
     operation of the housing assisted with grant amounts reduces 
     utility costs for residents and thereby reduces their total 
     housing cost.''.

  The CHAIRMAN. Pursuant to House Resolution 720, the gentleman from 
Massachusetts (Mr. Frank) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from Massachusetts.
  Mr. FRANK of Massachusetts. Mr. Chairman, the gentleman from 
Washington has been a strong advocate of energy efficiency and reducing 
excess energy costs. He approached the committee and argued that it 
would be very useful to have in the bill the language of this 
amendment, which says that you will take into account, in making the 
grants, the extent to which the money would reduce utility costs for 
residents. This would, of course, have the dual advantage of making it 
less expensive for these low-income residents and also conserving 
energy. So it seemed to us an entirely reasonable approach, and I was 
glad to tell the gentleman from Washington that I agree with him and, 
in fact, to serve as his designee in offering it.
  Mr. Chairman, I reserve the balance of my time.
  Mr. NEUGEBAUER. Mr. Chairman, I rise to claim the time in opposition, 
although I am not opposed to the amendment.
  The Acting CHAIRMAN (Mr. Ross). Without objection, the gentleman is 
recognized for 5 minutes.
  There was no objection.
  Mr. NEUGEBAUER. Mr. Chairman, certainly I think that anytime we are 
going to be investing Federal dollars in any housing in the future, we 
need to make the sure the houses are as energy efficient as they 
possibly can be. And as I understand the gentleman's amendment, this 
would be about making sure, in consideration for granting funds for 
that, that the construction, the design, all of the phases of creating 
housing in this country would take into account the utility costs and, 
hopefully, the overall operating costs of those projects.
  So with that, we support the amendment.
  Mr. Chairman, I yield back the balance of my time.
  Mr. FRANK of Massachusetts. Mr. Chairman, I yield back the balance of 
my time.
  The Acting CHAIRMAN. The question is on the amendment offered by the 
gentleman from Massachusetts (Mr. Frank).
  The amendment was agreed to.


         Amendment No. 5 Offered by Mr. Frank of Massachusetts

  The Acting CHAIRMAN. It is now in order to consider amendment No. 5 
printed in House Report 110-369.
  Mr. FRANK of Massachusetts. Mr. Chairman, as the designee of the 
gentlewoman from California (Ms. Woolsey), I offer an amendment.
  The Acting CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 5 offered by Mr. Frank of Massachusetts:
       Page 30, after line 4, insert the following:
       ``(3) Use for first responders and teachers.--To the extent 
     that Trust Fund grant amounts of a grantee are made available 
     for eligible activities involving one- to four-family owner-
     occupied housing, the grantee may give preference in the use 
     of such grant amounts to eligible activities relating to 
     affordable housing for first responders, public safety 
     officers, teachers, and other public employees who have 
     family incomes such that such use of the grant amounts 
     complies with the requirements under section 296(c).''.
       Page 30, line 5, strike ``(3)'' and insert ``(4)''.

  The Acting CHAIRMAN. Pursuant to House Resolution 720, the gentleman 
from Massachusetts (Mr. Frank) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from Massachusetts.
  Mr. FRANK of Massachusetts. Mr. Chairman, the gentlewoman from 
California, representing a high-cost area,

[[Page 26982]]

Marin County, especially, in California, confronts the problem that 
many others confront, but she has it particularly in her district where 
workers in a municipality can't afford to live in the city in which 
they work.
  So what her amendment does is to propose that with one- to four-
family owner-occupied housing, the grantees who receive this money can 
give preference to public safety officers, teachers, et cetera.
  Mr. Chairman, I reserve the balance of my time.
  Mr. NEUGEBAUER. Mr. Chairman, I rise to claim the time in opposition, 
although I am not opposed to the amendment.
  The Acting CHAIRMAN. Is there objection to the request of the 
gentleman from Texas?
  There was no objection.
  The Acting CHAIRMAN. The gentleman from Texas is recognized for 5 
minutes.
  Mr. NEUGEBAUER. Mr. Chairman, I want to agree with the chairman of 
the full committee that we do need to make sure that our first 
responders and teachers and people that we rely on to serve our 
communities be able to live in the communities that they are working 
in.
  I think this is a good amendment, and we are not opposed to the 
amendment.
  Mr. Chairman, I yield back the balance of my time.
  Mr. FRANK of Massachusetts. Mr. Chairman, I yield the balance of my 
time to the gentlewoman from California (Ms. Woolsey) so that she can 
speak for herself.
  The Acting CHAIRMAN. Without objection, the gentlewoman from 
California will control the balance of time of the gentleman from 
Massachusetts (Mr. Frank).
  There was no objection.
  Ms. WOOLSEY. Mr. Chairman, the amendment I offer today simply says 
that the organizations receiving grant money from the trust fund may 
give consideration to first responders, public safety officers, 
teachers, other public employees whose incomes have kept them from 
living in the communities that they serve.
  Mr. Chairman, I represent a district where the median income is 
higher than some others and so is the price of housing. Sometimes 
public service employees actually require that workers live within a 
certain distance from their job, and it's simply unfair that when home 
prices put affordable housing out of reach for these workers, then they 
cannot participate in that career.
  The amendment would not only affect high-cost areas but would benefit 
every single county or city in our country where public service 
employees have trouble finding housing.
  If these employees meet the income requirements of the bill, grantees 
would be able to give consideration to them and to their contributions 
to our communities.
  Mr. Chairman, it is time we stand up for these employees. It is time 
we let them know that we welcome them in our communities.
  Mr. Chairman, I yield back the balance of my time.
  The Acting CHAIRMAN. The question is on the amendment offered by the 
gentleman from Massachusetts (Mr. Frank).
  The amendment was agreed to.


         Amendment No. 6 Offered by Mr. Frank of Massachusetts

  The Acting CHAIRMAN. It is now in order to consider amendment No. 6 
printed in House Report 110-369.
  Mr. FRANK of Massachusetts. Mr. Chairman, as the designee of the 
gentleman from Rhode Island (Mr. Langevin), I offer an amendment.
  The Acting CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 6 offered by Mr. Frank of Massachusetts:
       Page 52, after line 15, insert the following:
       ``(c) Green Housing Clearinghouse.--
       ``(1) Establishment.--The Secretary shall establish a 
     clearinghouse of information relating to green building 
     techniques to provide grantees and recipients of Trust Fund 
     amounts information regarding use of Trust Fund grant amounts 
     in a manner that increases the efficiency of buildings and 
     their use of energy, water, and materials, and reducing 
     building impacts on human health and the environment, through 
     better siting, design, construction, operation, maintenance, 
     and removal, including information regarding best practices 
     and technical recommendations.
       ``(2) Access through internet.--The Secretary shall make 
     the information of the clearinghouse available by means of 
     the Internet.''.
       Page 51, line 9, strike ``and''.
       Page 51, line 14, strike the period and insert ``; and''.
       Page 51, after line 14, insert the following:

       ``(III) certifies the number of total dwelling units of 
     affordable housing that were constructed, preserved, or 
     rehabilitated during such fiscal year with assistance from 
     Trust Funds grant amounts of the grantee comply with widely 
     accepted standards for green building.''.

  The Acting CHAIRMAN. Pursuant to House Resolution 720, the gentleman 
from Massachusetts (Mr. Frank) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from Massachusetts.
  Mr. FRANK of Massachusetts. Mr. Chairman, we have in our committee 
been working hard to try to incorporate pro-environmental, energy-
saving measures, measures that would reduce global warming. And this is 
an amendment offered by the gentleman from Rhode Island that is very 
much in tune with this.
  Mr. Chairman, for further elaboration, I yield 2\1/2\ minutes to the 
gentleman from Oregon (Mr. Blumenauer).
  Mr. BLUMENAUER. Mr. Chairman, I appreciate the gentleman's courtesy, 
and I appreciate his leadership in guiding the committee to deal with 
issues of affordable housing, the crisis that plagues our country 
dealing with the mortgage crisis.
  If we are serious about providing affordable housing for families, 
then we need to be serious about building that housing in a sustainable 
fashion. Energy costs are increasing much faster than family incomes. 
Green homes are often 30 percent more energy efficient; that can cut 
utility costs by hundreds of dollars a year from the outset and an 
amount that is going to compound over time. We need to do well by our 
environment but we also need to save families' hard-earned money.
  There is also strong evidence that green homes are also healthier 
homes. More than 4 million American children have asthma, and it is 
estimated that had more than 40 percent of diagnosed asthma is due to 
residential exposure. Green homes use building practices and materials 
that minimize moisture, that provide proper ventilation, that prevent 
infestation and avoid toxic materials.
  I had the opportunity last night in Portland, OR, to be part of a 
celebration for our Oregon's architectural foundation, and these folks 
are zeroing in on practices that make a difference and add value. Many 
of the advantages of ``going green'' are based on people just having 
the fundamental information. There is a great deal of misinformation.
  This amendment would provide a ``green housing clearinghouse'' that 
will provide fundamental information for people who are involved with 
the industry. It requires grantees to self-certify how many of the 
total units they build with the grants were green. This will help keep 
the grantees accountable. It gives HUD important information on how 
many affordable housing units are, in fact, green. And I think it's 
going to be an important step, low cost, high impact, that is going to 
promote the housing in this arena to be of the highest quality and most 
sustainable practices.
  I strongly urge adoption of the amendment.
  Mr. NEUGEBAUER. Mr. Chairman, I rise to claim the time in opposition, 
although I am not opposed to the amendment.
  The Acting CHAIRMAN. Without objection, the gentleman from Texas is 
recognized for 5 minutes.
  There was no objection.
  Mr. NEUGEBAUER. Mr. Chairman, I would just say, again, I think we 
want to make sure that any new housing that's done is energy efficient 
and also meets as many green criteria.
  One of the things I would encourage and would hope that the chairman

[[Page 26983]]

would work with me in is in the final version of this bill I would hope 
that, once we conference that, the National Association of Home 
Builders has been involved in green building for a number of years and 
has set up a lot of information.
  So one of the things that you and I have talked about is we want to 
try to make this money go as far as we possibly can and avoid as much 
duplication as we can.
  Mr. FRANK of Massachusetts. Mr. Chairman, will the gentleman yield?
  Mr. NEUGEBAUER. I would be glad to yield to the gentleman from 
Massachusetts.
  Mr. FRANK of Massachusetts. Mr. Chairman, the gentleman is absolutely 
right. And that same issue, as he knows, is arising in the context of 
our work on HOPE VI. We want to do the green building standards. We 
want to do them in a way that will be sensible and reasonable.
  Let's be very clear. There aren't enough law enforcement people in 
the world to make this work if there isn't a willingness on the part of 
those involved to do it. If people think it is too rigid or inflexible, 
it's just not going to work as well. I think we have a wide willingness 
now on the part of the homebuilders and others to be participating in 
this.
  And, yes, we will make this very much a collaborative enterprise. Of 
course if the gentleman's substitute were to pass, it wouldn't be 
relevant. But in case it didn't, we will work together.
  Mr. NEUGEBAUER. Thank you.
  Mr. Chairman, I yield back the balance of my time.
  Mr. FRANK of Massachusetts. Mr. Chairman, I yield back the balance of 
my time.
  The Acting CHAIRMAN. The question is on the amendment offered by the 
gentleman from Massachusetts (Mr. Frank).
  The amendment was agreed to.

                              {time}  1415


         Amendment No. 7 Offered by Mr. Frank of Massachusetts

  The Acting CHAIRMAN. It is now in order to consider amendment No. 7 
printed in House Report 110-369.
  Mr. FRANK of Massachusetts. Mr. Chairman, as the designee of the 
gentleman from Maryland (Mr. Van Hollen), I offer the amendment that is 
now in order.
  The Acting CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 7 Offered by Mr. Frank of Massachusetts:
       Page 24, line 24, strike ``and''.
       Page 25, line 15, strike the period and insert ``; and''.
       Page 25, after line 15, insert the following:
       ``(C) in the case of any recipient who has received 
     assistance from Trust Fund grant amounts in any previous 
     fiscal year, a report on the progress made in carrying out 
     the eligible activities funded with such previous 
     assistance.''.

  The Acting CHAIRMAN. Pursuant to House Resolution 720, the gentleman 
from Massachusetts (Mr. Frank) and a Member opposed each will control 5 
minutes.
  The Chair recognizes the gentleman from Massachusetts.
  Mr. FRANK of Massachusetts. Mr. Chairman, this is a very reasonable 
and thoughtful amendment from the gentleman from Maryland. What it says 
is that we hope this program is established, we hope that there will be 
entities that will be repeat applicants. We just want to make explicit 
that if people have gotten a grant and now come back for another one, 
they be very explicit about what they have done with it. It is, I 
think, a very useful kind of oversight that's built into the program. 
It may seem obvious, but we sometimes read about people getting renewed 
programs when they haven't done a very good job in the last one. This 
won't make that absolutely impossible, but it will make it less likely. 
I think it is a very useful amendment by the gentleman from Maryland, 
and I hope it's adopted.
  Mr. Chairman, I reserve the balance of my time.
  Mr. NEUGEBAUER. Mr. Chairman, I seek the time in opposition, although 
I am not opposed to the amendment.
  The Acting CHAIRMAN. Without objection, the gentleman from Texas is 
recognized for 5 minutes.
  There was no objection.
  Mr. NEUGEBAUER. Mr. Chairman, I think this is a very good amendment. 
Accountability in any government program is always welcome, and I thank 
the gentleman for offering this.
  We need to make sure that, as we are passing out these monies, we 
want them to go as far as they can, we want them to go to people that 
can actually deliver what they said in their grant proposals and in 
their quest in their housing proposals, and so I support it.
  Mr. Chairman, I yield back the balance of my time.
  Mr. FRANK of Massachusetts. Mr. Chairman, I yield back the balance of 
my time.
  The Acting CHAIRMAN. The question is on the amendment offered by the 
gentleman from Massachusetts (Mr. Frank).
  The amendment was agreed to.


               Amendment No. 8 offered by Mr. Neugebauer

  The Acting CHAIRMAN. It is now in order to consider amendment No. 8 
printed in House Report 110-369.
  Mr. NEUGEBAUER. Mr. Chairman, I offer an amendment.
  The Acting CHAIRMAN. The Clerk will designate the amendment.
  The text of the amendment is as follows:

       Amendment No. 8 offered by Mr. Neugebauer:
       Strike all after the enacting clause and insert the 
     following:

     SECTION 1. SHORT TITLE.

       This Act may be cited as the ``National Affordable Housing 
     Grant Act of 2007''.

     SEC. 2. NATIONAL AFFORDABLE HOUSING GRANTS.

       (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 Grant Program

     ``SEC. 291. PURPOSES.

       ``The purposes of this subtitle are--
       ``(1) to address the national shortage of housing that is 
     affordable to low-income families by making grants to finance 
     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 ownership of one-to-four family owner-
     occupied housing by low-income families; and
       ``(4) to construct, rehabilitate, and preserve at least 
     750,000 affordable dwelling units over the next decade.

     ``SEC. 292. GRANT AUTHORITY.

       ``(a) In General.--To the extent that amounts are made 
     available to carry out this subtitle, the Secretary of 
     Housing and Urban Development may make grants to 
     participating jurisdictions in accordance with this subtitle.
       ``(b) Federal Assistance.--All assistance provided under 
     this subtitle shall be considered to be Federal financial 
     assistance.
       ``(c) Authorization of Appropriations.--There are 
     authorized to be appropriated for grants under this title 
     such sums as may be necessary for each of fiscal years 2008 
     through 2012.

     ``SEC. 293. ALLOCATIONS FOR STATES, INDIAN TRIBES, INSULAR 
                   AREAS, AND PARTICIPATING LOCAL JURISDICTIONS.

       ``For fiscal year 2008 and for each fiscal year thereafter, 
     of the total amount available for assistance under this 
     subtitle, the Secretary shall allocate for use under section 
     294--
       ``(1) 40 percent for States, Indian tribes, and insular 
     areas; and
       ``(2) 60 percent for participating local jurisdictions.

     ``SEC. 294. GRANT ASSISTANCE.

       ``(a) Affordable Housing Needs Formula.--
       ``(1) Establishment and factors.--The Secretary shall 
     establish a formula to allocate amounts made available for a 
     fiscal year for assistance under this subtitle among States, 
     all Indian tribes, insular areas, and participating local 
     jurisdictions based on the relative needs of such entities, 
     for funds to increase the supply of decent quality affordable 
     housing. The formula shall be based upon a comparison of the 
     following factors with respect to each State, Indian tribes, 
     each insular area, and each participating local jurisdiction:
       ``(A) The ratio of the population of the State, Indian 
     tribes, insular area, or participating local jurisdiction, to 
     the aggregate population of all States, Indian tribes, 
     insular areas, and participating local jurisdictions.
       ``(B) The percentage of families in the jurisdiction of the 
     State, of Indian tribes, or of

[[Page 26984]]

     the insular area or participating local jurisdiction that 
     live in substandard housing.
       ``(C) The percentage of families in the jurisdiction of the 
     State, of Indian tribes, or of the insular area or that pay 
     more than 50 percent of their annual income for housing 
     costs.
       ``(D) The percentage of persons in the jurisdiction of the 
     State, of Indian tribes, or of the insular area or 
     participating local jurisdiction having an income at or below 
     the poverty line.
       ``(E) The cost of constructing or carrying out 
     rehabilitation of housing in the jurisdiction of the State, 
     of Indian tribes, or of the insular area or participating 
     local jurisdiction.
       ``(F) The percentage of the population of the State, of 
     Indian tribes, or of the insular area or participating local 
     jurisdiction that resides in counties having extremely low 
     vacancy rates.
       ``(G) The percentage of housing stock in the jurisdiction 
     of the State, of Indian tribes, or of the insular area or 
     participating local jurisdiction that is extremely old 
     housing.
       ``(H) Any other factors that the Secretary determines to be 
     appropriate.
       ``(2) Failure to establish.--Until such time as the 
     Secretary publishes a notice in the Federal Register 
     implementing regulations establishing the formula required 
     under paragraph (1) of this subsection, for the purpose of 
     allocating assistance under this subtitle--
       ``(A) section 293, paragraphs (2) and (3) of subsection (b) 
     of this section, and subsection (c) of this section shall not 
     apply;
       ``(B) the allocation for Indian tribes shall be such amount 
     as the Secretary shall establish; and
       ``(C) the formula amount for each State, insular area, or 
     participating local jurisdiction shall be determined by 
     applying, for such State, insular area, or participating 
     local jurisdiction, the percentage that is equal to the 
     percentage of the total amounts made available for such 
     fiscal year for allocation under subtitle A of this title (42 
     U.S.C. 12741 et seq.) that are allocated in such year, 
     pursuant to such subtitle, to such State, insular area, or 
     participating local jurisdiction, respectively, and the 
     allocation for each State, insular area, or participating 
     local jurisdiction, for purposes of subsection (d) shall be 
     the formula amount for the State, insular area, or 
     participating local jurisdiction, respectively.
       ``(b) Formula Amount.--
       ``(1) In general.--For each fiscal year referred to in 
     section 293, the Secretary shall determine the formula amount 
     under this subsection for each State, for Indian tribes, for 
     each insular area, and for each participating local 
     jurisdiction.
       ``(2) States, indian tribes, and insular areas.--The 
     formula amount for each State, for Indian tribes, and for 
     each insular area shall be the amount determined for such 
     State, for Indian tribes, or for such insular area by 
     applying the formula under subsection (a) of this section to 
     the total amount allocated under section 293(1) for all 
     States, Indian tribes, and insular areas 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) of this section 
     to the total amount allocated under section 293(2) for all 
     participating local jurisdictions for the fiscal year.
       ``(4) Notice.--For each fiscal year referred to in section 
     293, not later than 60 days after the date that the Secretary 
     determines the total amount available for such fiscal year 
     pursuant to section 292(c) for assistance under this 
     subtitle, the Secretary shall cause to be published in the 
     Federal Register a notice that such amounts shall be so 
     available.
       ``(c) Allocation Based on Affordable Housing Needs 
     Formula.--The allocation under this subsection for a State, 
     for Indian tribes, for an insular area, or for a 
     participating local jurisdiction for a fiscal year shall be 
     determined as follows:
       ``(1) States.--The allocation for a State shall be as 
     follows:
       ``(A) Minimum amount.--If the formula amount determined 
     under subsection (b)(2) for the State for the fiscal year is 
     less than 1 percent of the total amount allocated for such 
     fiscal year under section 293(1), the allocation for the 
     State shall be 1 percent of the total amount allocated for 
     such fiscal year under section 293(1).
       ``(B) Formula amount.--If the formula amount determined 
     under subsection (b)(2) for the State for the fiscal year is 
     1 percent or more of the total amount allocated for such 
     fiscal year under section 293(1), 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 
     subparagraph on a pro rata basis by the amount necessary to 
     account for any increases from the formula amount for 
     allocations made under subparagraph (A) so that the total of 
     the allocations for all States pursuant to this paragraph is 
     equal to the aggregate of the formula amounts under 
     subsection (b)(2) for all States.
       ``(2) Indian tribes and insular areas.--The allocation for 
     Indian tribes and for each insular area shall be the formula 
     amount for Indian tribes or for the insular area, 
     respectively, determined under subsection (b), as applicable.
       ``(3) Participating local jurisdictions.--The allocation 
     for each participating local jurisdiction shall be the 
     formula amount for the unit determined under subsection (b).
       ``(d) Grant Awards.--For each fiscal year referred to in 
     section 293, using the amounts made available to the 
     Secretary for assistance under this subtitle for such fiscal 
     year, the Secretary shall, subject to subsection (e), make a 
     grant to each State, insular area, and participating local 
     jurisdiction in the amount of the allocation under subsection 
     (a)(2) or (c), as applicable, for the State, area, or 
     jurisdiction, respectively.
       ``(e) Matching Requirement.--
       ``(1) In general.--Each participating jurisdiction for a 
     program year shall contribute to eligible activities funded 
     with grant amounts under this subtitle, or require the 
     contribution to such eligible activities by recipients of 
     such grant amounts of, in addition to any such grant amounts, 
     one dollar for every four dollars of such grant amounts.
       ``(2) Reduction or waiver for recipients in fiscal 
     distress.--The Secretary may reduce or waive the requirement 
     under paragraph (1) with respect to any participating 
     jurisdiction that the Secretary determines, pursuant to such 
     demonstration by the recipient as the Secretary shall 
     require, is in fiscal distress. The Secretary shall make 
     determinations regarding fiscal distress for purposes of this 
     paragraph in the same manner, and according to the same 
     criteria, as fiscal distress is determined with respect to 
     jurisdictions under section 220(d) (42 U.S.C. 12750(d)).
       ``(3) Qualification of services funding for match.--For 
     purposes of meeting the requirements of paragraph (1), 
     amounts that a participating jurisdiction, recipient, or 
     other governmental or private agency or entity commits to 
     contribute to provide services to residents of affordable 
     housing provided using grant amounts under this subtitle, by 
     entering into a binding commitment for such contribution as 
     the Secretary shall require, shall be considered 
     contributions to eligible activities.
       ``(4) Reduction or waiver for certain activities.--With 
     respect to grant amounts under this subtitle made available 
     for a fiscal year, the Secretary shall reduce or waive the 
     amount of contributions otherwise required under paragraph 
     (1) to be made with respect to eligible activities to be 
     carried out with such grant amounts and for which any 
     variance from zoning laws or other waiver of regulatory 
     requirements was approved by the local jurisdiction. Such 
     reduction may be implemented in the year following the year 
     in which such activities are funded with grant amounts under 
     this subtitle.
       ``(5) Waiver for disaster areas.--In the case of any area 
     that is subject to a declaration by the President of a major 
     disaster or emergency under the Robert T. Stafford Disaster 
     Relief and Emergency Assistance Act (42 U.S.C. 5121), the 
     Secretary shall, for the fiscal year following such 
     declaration, waive the requirement under paragraph (1) with 
     respect to any eligible activities to be carried out in such 
     area.
       ``(f) Competitive Grants for Indian Tribes.--For each 
     fiscal year referred to in section 293, the Secretary shall, 
     using amounts allocated for Indian tribes pursuant to 
     subsection (a)(2)(B) or (c)(2), as applicable, and subject to 
     subsection (e), make grants to Indian tribes on a competitive 
     basis, based upon such criteria as the Secretary shall 
     establish, which shall include the factors specified in 
     section 295(c)(2)(B).
       ``(g) Use by State of Unused Funds of Local 
     Jurisdictions.--If any participating local jurisdiction for 
     which an allocation is made for a fiscal year pursuant to 
     this section notifies the Secretary of an intent not to use 
     all or part of such funds, any such funds that will not be 
     used by the jurisdiction shall be added to the grant award 
     under subsection (d) for the State in which such jurisdiction 
     is located.
       ``(h) Competitive Grants for Areas Without Allocation Plans 
     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 areas not submitting allocation 
     plans.--With respect to each State, insular area, or 
     participating local jurisdiction that has not, before the 
     expiration of the 12-month period beginning upon the date of 
     the publication of the notice of funding availability for 
     such fiscal year under subsection (b)(4), submitted to and 
     had approved by the Secretary an allocation plan for such 
     fiscal year meeting the requirements of section 295, the 
     amount of the allocation for such State, insular area, or 
     participating local jurisdiction for such fiscal year 
     determined under this section.
       ``(B) Unmatched portion of allocation.--With respect to any 
     participating jurisdiction for which the grant amount awarded 
     under this subtitle for such fiscal year is reduced from the 
     amount of the allocation determined under this section for 
     the participating jurisdiction by reason of failure comply 
     with the requirements under subsection

[[Page 26985]]

     (e), the amount by which such allocation for the 
     participating jurisdiction for the fiscal year exceeds the 
     grant amount for the participating jurisdiction for the 
     fiscal year.
       ``(C) Unused amounts.--Any grant amounts under this 
     subtitle for which the participating jurisdiction notifies 
     the Secretary that such funds will not be used under this 
     subtitle.
       ``(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 regional consortia of units of local government) 
     to submit applications, during the 9-month period beginning 
     upon publication of a notice of funding availability under 
     paragraph (2) for a fiscal year, for a grant of all or a 
     portion of the amounts referred to in paragraph (1) for such 
     fiscal year. Such an application shall include a 
     certification that the applicant will comply with all 
     requirements of this subtitle applicable to a participating 
     jurisdiction under this subsection.
       ``(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 or insular area, as applicable, 
     for which such grant funds were originally allocated under 
     this section.
       ``(5) Award and use of grant assistance.--
       ``(A) Award.--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) Use.--Amounts from a grant under this subsection 
     shall be grant amounts for purposes of this subtitle.

     ``SEC. 295. STATE ALLOCATION PLANS.

       ``(a) In General.--Each State shall establish, in 
     consultation with participation local jurisdictions within 
     the State, an allocation plan in accordance with this section 
     for the distribution grant amounts provided under this 
     subtitle to the State and the participating local 
     jurisdictions. The plan shall--
       ``(1) provide for use of such amounts in accordance with 
     section 296;
       ``(2) be based on priority needs within the State; and
       ``(3) be consistent with the comprehensive housing 
     affordability strategy under section 105 (42 U.S.C. 12705).
       ``(b) Establishment.--In establishing an allocation plan, 
     after consultation with participating local jurisdictions, 
     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.
       ``(c) Contents.--Each allocation plan of a State described 
     in subsection (a) shall comply with the following 
     requirements:
       ``(1) Application requirements for eligible recipients.--
     The allocation plan shall set forth the requirements for 
     eligible recipients to apply to the State to receive 
     assistance from grant amounts under this subtitle of the 
     State or participating local jurisdiction for use for 
     eligible activities, including a requirement that each such 
     application include--
       ``(A) a description of the eligible activities to be 
     conducted using such assistance; and
       ``(B) a certification by the eligible recipient applying 
     for such assistance that any housing assisted with such grant 
     amounts will comply with--
       ``(i) all of the requirements under this subtitle, 
     including the targeting requirements under section 296(c) and 
     the affordable housing requirements under section 297;
       ``(ii) section 808(d) of the Fair Housing Act (relating to 
     the obligation to affirmatively further fair housing); and
       ``(iii) section 504 of the Rehabilitation Act of 1973 
     (relating to prohibition of discrimination on the basis of 
     disability).
       ``(2) Selection process and criteria for assistance.--
       ``(A) Selection process.--The allocation plan shall set 
     forth a process for the State to select eligible activities 
     meeting the State's priority housing needs for funding with 
     grant amounts under this subtitle of the State and local 
     governments, which shall comply with requirements for such 
     process as the Secretary shall, by regulation, establish.
       ``(B) Selection criteria.--The allocation plan shall set 
     forth the factors for consideration in selecting among 
     applicants that meet the application requirements established 
     pursuant to paragraph (1), which shall provide for geographic 
     diversity among eligible activities to be assisted with grant 
     amounts of the State or participating local jurisdictions, 
     and shall include--
       ``(i) the merits of the proposed eligible activity of the 
     applicant, including the extent to which the activity 
     addresses housing needs identified in the allocation plan of 
     the participating jurisdiction and the applicable 
     comprehensive housing affordability strategy or consolidated 
     submission referred to in subsection (a)(3);
       ``(ii) the ability of the applicant to obligate grant 
     amounts for the proposed eligible activities and to undertake 
     such activities in a timely manner;
       ``(iii) 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 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;
       ``(iv) the extent of local assistance that will be provided 
     in carrying out the eligible activities, including financial 
     assistance;
       ``(v) the degree to which the project in which the 
     affordable housing will be located will have residents of 
     various incomes;
       ``(vi) the extent of employment and other economic 
     opportunities for low-income families in the area in which 
     the housing will be located;
       ``(vii) 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;
       ``(viii) 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;
       ``(ix) the extent to which the percentage of the housing 
     located in such county that is extremely old housing exceeds 
     35 percent;
       ``(x) the extent to which the housing assisted with the 
     grant amounts will be accessible to persons with 
     disabilities;
       ``(xi) 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;
       ``(xii) the extent to which the applicant has provided that 
     assistance from 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; and
       ``(xiii) the extent to which the housing assisted with 
     grant amounts will comply with energy efficiency standards 
     and the national Green Communities criteria checklist for 
     residential construction that provides criteria for the 
     design, development, and operation of affordable housing, as 
     the Secretary shall by regulation provide.

     A State may allocate a portion of funds under this section 
     for use by such State for eligible activities pursuant to the 
     selection process under subparagraph (A).
       ``(C) Applications.--Applications for funding eligible 
     activities from grant amounts of the local government shall 
     be submitted to the local government, and applications 
     received by the local government that are consistent with the 
     priority housing needs of the local government shall be sent 
     by the local government to the State for selection by the 
     State in accordance with the process established by the 
     State.
       ``(3) Performance goals, benchmarks, and timetables.--The 
     allocation plan shall include performance goals, benchmarks, 
     and timetables for the participating jurisdiction for the 
     conducting of eligible activities with grant amounts under 
     this subtitle that comply with requirements and standards for 
     such goals, benchmarks, and timetables as the Secretary 
     shall, by regulation, establish.
       ``(d) Review and Approval by Secretary.--
       ``(1) Submission.--A participating jurisdiction described 
     in subsection (a) shall submit an allocation plan for the 
     fiscal year for which the grant is made to the Secretary not 
     later than the expiration of the 6-month period beginning 
     upon the notice of funding availability under section 
     294(b)(4) for such fiscal year amounts.
       ``(2) Review and approval or disapproval.--The Secretary 
     shall review and approve or disapprove an allocation plan not 
     later than the expiration of the 3-month period beginning 
     upon submission of the plan.
       ``(3) Standard for disapproval.--The Secretary may 
     disapprove an allocation plan only if the plan fails to 
     comply with requirements of this section or section 296.
       ``(4) Resubmission upon disapproval.--If the Secretary 
     disapproves a plan, the participating jurisdiction may submit 
     to the Secretary a revised plan for review and approval or 
     disapproval under this subsection.
       ``(5) Timing for fiscal year 2008.--With respect only to 
     fiscal year 2008, the Secretary

[[Page 26986]]

     may extend each of the periods referred to in paragraphs (1) 
     and (2), and the period referred to in section 294(h)(1)(A), 
     by not more than 6 months.
       ``(e) Compliance With Internal Revenue Code.--A State may 
     combine the allocation plan and process under this section 
     with the qualified allocation plan and process required under 
     section 42 of the Internal Revenue Code of 1986.

     ``SEC. 296. USE OF ASSISTANCE BY RECIPIENTS.

       ``(a) Distribution to Recipients; Use Requirements.--Each 
     participating jurisdiction shall distribute grant amounts 
     under this subtitle of the participating jurisdiction to 
     eligible recipients for use in accordance with this section. 
     Grant amounts under this subtitle of a participating 
     jurisdiction may be used, or committed for use, only for 
     eligible activities that--
       ``(1) are conducted in the jurisdiction of the 
     participating jurisdiction;
       ``(2) in the case of a participating jurisdiction that is a 
     State, insular area, participating local jurisdiction, or 
     participating jurisdiction under section 294(h), comply with 
     the allocation plan of the participating jurisdiction under 
     section 295;
       ``(3) are selected for funding by the participating 
     jurisdiction in accordance with the process and criteria for 
     such selection established pursuant to section 295(c)(2); and
       ``(4) comply with the targeting requirements under 
     subsection (c) of this section and the affordable housing 
     requirements under section 297.
       ``(b) Eligible Recipients.--Grant amounts under this 
     subtitle of a participating jurisdiction may be provided only 
     to an organization, agency, or other entity (including a for-
     profit entity, a nonprofit entity, a faith-based 
     organization, a community development financial institution, 
     a community development corporation, and a State or local 
     housing trust fund) that--
       ``(1) demonstrates the experience, ability, and capacity 
     (including financial capacity) to undertake, comply, and 
     manage the eligible activity;
       ``(2) demonstrates its familiarly with the requirements of 
     any other Federal, State or local housing program that will 
     be used in conjunction with such grant amounts to ensure 
     compliance with all applicable requirements and regulations 
     of such programs; and
       ``(3) makes such assurances to the participating 
     jurisdiction as the Secretary shall, by regulation, require 
     to ensure that the recipient will comply with the 
     requirements of this subtitle during the entire period that 
     begins upon selection of the recipient to receive such grant 
     amounts and ending upon the conclusion of all eligible 
     activities that are engaged in by the recipient and funded 
     with such grant amounts.
       ``(c) Targeting Requirements.--The targeting requirements 
     under this subsection are as follows:
       ``(1) Requirement of use of all amounts for affordable 
     housing for low-income families.--All grant amounts under 
     this subtitle of a participating jurisdiction shall be 
     distributed for use only for eligible activities relating to 
     affordable housing that are for the benefit only of families 
     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 or insular 
     area in which the housing is located, as determined by the 
     Secretary with adjustments for smaller and larger families.
       ``(2) Use of 75 percent for affordable housing for 
     extremely low-income families.--Not less than 75 percent of 
     the grant amounts under this subtitle of a participating 
     jurisdiction for each fiscal year shall be used only for 
     eligible activities relating to affordable housing that are 
     for the benefit only of families whose incomes do not exceed 
     the higher of--
       ``(A) 30 percent of 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 poverty line (as such term is defined in section 
     673 of the Omnibus Budget Reconciliation Act of 1981 (42 
     U.S.C. 9902), including any revision required by such 
     section) applicable to a family of the size involved.
       ``(3) Use of 30 percent for affordable housing for very 
     poor families.--Not less than 30 percent of the grant amounts 
     under this subtitle of a participating jurisdiction for each 
     fiscal year shall be used only for eligible activities 
     relating to affordable housing that are for the benefit only 
     of families whose incomes do not exceed the maximum amount of 
     income that an individual or family could have, taking into 
     consideration any income disregards, and remain eligible for 
     benefits under the Supplemental Security Income program under 
     title XVI of the Social Security Act (42 U.S.C. 1381 et 
     seq.).
       ``(d) Use for Rural Areas.--Of the grant amounts under this 
     subtitle for any fiscal year for any participating 
     jurisdiction that is a State or participating jurisdiction 
     that includes any rural areas, the State or participating 
     jurisdiction shall use a portion for eligible activities 
     located in rural areas that is proportionate to the 
     identified need for such activities in such rural areas.
       ``(e) Cost Limits.--The Secretary shall establish 
     limitations on the amount of grant amounts under this 
     subtitle 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) (42 
     U.S.C. 12742(e)), as adjusted annually, and established by 
     number of bedrooms, market area, and eligible activity.
       ``(f) Forms of Assistance.--
       ``(1) In general.--Assistance may be distributed pursuant 
     to this section in the form of--
       ``(A) capital grants, noninterest-bearing or low-interest 
     loans or advances, deferred payment loans, guarantees, and 
     loan loss reserves;
       ``(B) in the case of assistance for ownership of one- to 
     four-family owner-occupied housing, downpayment assistance, 
     closing cost assistance, and assistance for interest rate 
     buy-downs; and
       ``(C) any other forms of assistance approved by the 
     Secretary.
       ``(2) Repayments.--If a participating jurisdiction awards 
     assistance under this section in the form of a loan or other 
     mechanism by which funds are later repaid to the 
     participating jurisdiction, any repayments and returns 
     received by the participating jurisdiction shall be 
     distributed by the participating jurisdiction in accordance 
     with the allocation plan under section 295 for the State for 
     the fiscal year in which such repayments are made or returns 
     are received.
       ``(g) Coordination With Other Assistance.--In distributing 
     assistance pursuant to this section, each participating 
     jurisdiction shall, to the maximum extent practicable, 
     coordinate such distribution with the provision of other 
     Federal, State, tribal, 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 subtitles A through F 
     (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.);
       ``(7) assistance made available under section 101 of the 
     Native American Housing Assistance and Self-Determination Act 
     of 1996 (25 U.S.C. 4111);
       ``(8) assistance made available from any State or local 
     housing trust fund established to provide or assist in making 
     available affordable housing; and
       ``(9) any other housing assistance programs.
       ``(h) Prohibited Uses.--The Secretary shall--
       ``(1) by regulation, set forth prohibited uses of grant 
     amounts under this subtitle, which shall include use for--
       ``(A) political activities;
       ``(B) advocacy;
       ``(C) lobbying, whether directly or through other parties;
       ``(D) counseling services;
       ``(E) travel expenses; and
       ``(F) preparing or providing advice on tax returns;
       ``(2) by regulation, provide that, except as provided in 
     paragraph (3), grant amounts under this subtitle may not be 
     used for administrative, outreach, or other costs of--
       ``(A) a participating jurisdiction; or
       ``(B) any recipient of such grant amounts; and
       ``(3) by regulation, limit the amount of any grant amounts 
     under this subtitle for a fiscal year that may be used for 
     administrative costs of the participating jurisdiction of 
     carrying out the program required under this subtitle to a 
     percentage of such grant amounts of the participating 
     jurisdiction for such fiscal year, which may not exceed 10 
     percent.
       ``(i) Labor Standards.--Each participating jurisdiction 
     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 (42 
     U.S.C. 12836) that are applicable to contracts for 
     construction of affordable housing assisted under such Act.
       ``(j) Compliance With Other Federal Laws.--All amounts made 
     available for use under this subtitle shall be allocated in 
     accordance with, and any eligible activities carried out in 
     whole or in part with grant amounts under this subtitle 
     (including housing provided with such grant amounts) shall 
     comply with and be operated in compliance with, other 
     applicable provisions of Federal law, including--
       ``(1) laws relating to tenant protections and tenant rights 
     to participate in decision making regarding their residences;
       ``(2) laws requiring public participation, including laws 
     relating to Consolidated Plans,

[[Page 26987]]

     Qualified Allocation Plans, and Public Housing Agency Plans; 
     and
       ``(3) fair housing laws and laws regarding accessibility in 
     federally assisted housing, including section 504 of the 
     Rehabilitation Act of 1973.

     ``SEC. 297. AFFORDABLE HOUSING.

       ``(a) Rental Housing.--A rental dwelling unit (which may 
     include a dwelling unit in 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)) or in 
     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.A. 216(b))), shall be considered affordable 
     housing for purposes of this subtitle only if the dwelling 
     unit is subject to legally binding commitments that ensure 
     that the dwelling unit meets all of the following 
     requirements:
       ``(1) Rents.--The dwelling unit bears a rent not greater 
     than the lesser of--
       ``(A) 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
       ``(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 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.
       ``(2) 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.
       ``(3) 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.
       ``(4) Mixed income.--
       ``(A) 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(c)(2), as 
     determined at a reasonable time before occupancy.
       ``(B) Exceptions.--Subparagraph (A) shall not apply in the 
     case of a project having 25 or fewer 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.
       ``(5) Visitability.--To the extent the dwelling unit is not 
     required under Federal law to comply with standards relating 
     to accessibility to persons with disabilities, the dwelling 
     unit complies with such basic visitability standards as the 
     Secretary shall by regulation provide.
       ``(6) Duration of use.--The dwelling unit will continue to 
     be subject to all requirements under this subsection for not 
     less than 50 years.
       ``(b) Owner-Occupied Housing.--For purposes of any eligible 
     activity involving one- to four-family owner-occupied housing 
     (which may 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.A. 216(b))), such a 
     residence shall be considered affordable housing for purposes 
     of this subtitle only if--
       ``(1) in the case of housing to be made available for 
     purchase--
       ``(A) the housing is available for purchase only for use as 
     a principal residence by families that qualify as first-time 
     homebuyers, as such term is defined in section 104 (42 U.S.C. 
     12704), except that any reference in such section to 
     assistance under title II of this Act shall for purposes of 
     this section be considered to refer to assistance from grant 
     amounts under this subtitle;
       ``(B) the housing has an initial purchase price that meets 
     the requirements of section 215(b)(1); and
       ``(C) the housing is subject to the same resale 
     restrictions established under section 215(b)(3) and 
     applicable to the participating jurisdiction that is the 
     State in which such housing is located; and
       ``(2) the housing is made available for purchase only by, 
     or in the case of assistance to a homebuyer pursuant to this 
     subsection, the assistance is made available only to, 
     homebuyers who have, before purchase, completed a program of 
     counseling with respect to the responsibilities and financial 
     management involved in homeownership that is approved by the 
     Secretary; except that the Secretary may, at the request of a 
     State, waive the requirements of this paragraph with respect 
     to a geographic area or areas within the State if--
       ``(A) the travel time or distance involved in providing 
     counseling with respect to such area or areas, as otherwise 
     required under this paragraph, on an in-person basis is 
     excessive or the cost of such travel is prohibitive; and
       ``(B) the State provides alternative forms of counseling 
     for such area or areas, which may include interactive 
     telephone counseling, on-line counseling, interactive video 
     counseling, and interactive home study counseling and a 
     program of financial literacy and education to promote an 
     understanding of consumer, economic, and personal finance 
     issues and concepts, including saving for retirement, 
     managing credit, long-term care, and estate planning and 
     education on predatory lending, identity theft, and financial 
     abuse schemes relating to homeownership that is approved by 
     the Secretary, except that entities providing such counseling 
     shall not discriminate against any particular form of 
     housing; and

     ``SEC. 298. OTHER PROVISIONS.

       ``(a) 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 
     subtitles A through F of this title, if the project does not 
     exceed the cost limits established pursuant to section 
     296(e).
       ``(b) Accountability of Participating Jurisdictions and 
     Recipients.--
       ``(1) Recipients.--
       ``(A) Tracking of funds.--The Secretary shall--
       ``(i) require each participating jurisdiction to develop 
     and maintain a system to ensure that each recipient of 
     assistance from grant amounts under this subtitle of the 
     participating jurisdiction uses such amounts in accordance 
     with this subtitle, the regulations issued under this 
     subtitle, and any requirements or conditions under which such 
     amounts were provided; and
       ``(ii) establish minimum requirements for agreements, 
     between the participating jurisdiction and recipients, 
     regarding assistance from the grant amounts under this 
     subtitle of the participating jurisdiction, which shall 
     include--

       ``(I) appropriate continuing financial and project 
     reporting, record retention, and audit requirements for the 
     duration of the grant to the recipient to ensure compliance 
     with the limitations and requirements of this subtitle and 
     the regulations under this subtitle; and
       ``(II) any other requirements that the Secretary determines 
     are necessary to ensure appropriate grant administration and 
     compliance.

       ``(B) Misuse of funds.--
       ``(i) Reimbursement requirement.--If any recipient of 
     assistance from grant amounts under this subtitle of a 
     participating jurisdiction is determined, in accordance with 
     clause (ii), to have used any such amounts in a manner that 
     is materially in violation of this subtitle, the regulations 
     issued under this subtitle, or any requirements or conditions 
     under which such amounts were provided, the participating 
     jurisdiction shall require that, within 12 months after the 
     determination of such misuse, the recipient shall reimburse 
     the participating jurisdiction for such misused amounts and 
     return to the participating jurisdiction any amounts from the 
     grant amounts under this subtitle of the participating 
     jurisdiction that remain unused or uncommitted for use. The 
     remedies under this clause are in addition to any other 
     remedies that may be available under law.
       ``(ii) Determination.--A determination is made in 
     accordance with this clause if the determination is--

       ``(I) made by the Secretary ; or
       ``(II)(aa) made by the participating jurisdiction;
       ``(bb) the participating jurisdiction provides notification 
     of the determination to the Secretary for review, in the 
     discretion of the Secretary, of the determination; and
       ``(cc) the Secretary does not subsequently reverse the 
     determination.

       ``(2) Participating jurisdictions.--
       ``(A) Report.--
       ``(i) In general.--The Secretary shall require each 
     participating jurisdiction receiving grant amounts under this 
     subtitle for a fiscal year to submit a report, for such 
     fiscal year, to the Secretary that--

       ``(I) describes the activities funded under this subtitle 
     during such year with the grant amounts under this subtitle 
     of the participating jurisdiction; and
       ``(II) the manner in which the participating jurisdiction 
     complied during such fiscal year with the allocation plan 
     established pursuant to section 295 for the participating 
     jurisdiction.

       ``(ii) Public availability.--The Secretary shall make such 
     reports pursuant to this subparagraph publicly available.
       ``(B) Misuse of funds.--If the Secretary determines, after 
     reasonable notice and opportunity for hearing, that a 
     participating 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--

[[Page 26988]]

       ``(i) reduce the amount of assistance under this section to 
     the participating jurisdiction by an amount equal to the 
     amount of grant amounts under this subtitle which were not 
     used in accordance with this subtitle;
       ``(ii) require the participating jurisdiction to repay the 
     Secretary an amount equal to the amount of the grant amounts 
     under this subtitle which were not used in accordance with 
     this subtitle;
       ``(iii) limit the availability of assistance under this 
     subtitle to the participating jurisdiction to activities or 
     recipients not affected by such failure to comply; or
       ``(iv) terminate any assistance under this subtitle to the 
     participating jurisdiction.
       ``(C) Unexpended funds.--Grant amounts under this subtitle 
     that are not committed to projects by the State or 
     participating local jurisdiction before the expiration of the 
     24-month period beginning the last day of the month in which 
     the Secretary executes the grant agreement with the State or 
     participating local jurisdiction shall be recaptured by the 
     Secretary and added to amounts available in the following 
     fiscal year for formula allocation under section 294.

     ``SEC. 299. DEFINITIONS.

       ``For purposes of this subtitle, the following definitions 
     shall apply:
       ``(1) Eligible activities.--The term `eligible activities' 
     means activities relating to the construction, preservation, 
     or rehabilitation of affordable rental housing or affordable 
     one- to four-family owner-occupied 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) use of funds to facilitate affordability for homeless 
     and other extremely low-income households of dwelling units 
     assisted with grant amounts under this subtitle, in a 
     combined amount not to exceed 20 percent of the project grant 
     amount, for--
       ``(i) project-based rental assistance for not more than 12 
     months for a project assisted with grant amounts under this 
     subtitle;
       ``(ii) project operating reserves for use to cover the loss 
     of rental assistance or in conjunction with a project loan; 
     or
       ``(iii) project operating accounts used to cover net 
     operating income shortfalls for dwelling units assisted with 
     grant amounts under this subtitle; and
       ``(F) providing incentives to maintain existing housing 
     (including manufactured housing) as affordable housing and to 
     establish or extend any low-income affordability restrictions 
     for such housing, including covering capital expenditures and 
     costs of establishing community land trusts to provide sites 
     for manufactured housing provided such incentives;
       ``(2) Eligible recipient.--The term `eligible recipient' 
     means an entity that meets the requirements under section 
     296(b) for receipt of grant amounts under this subtitle of a 
     participating jurisdiction.
       ``(3) Extremely low vacancy rate.--The term `extremely low 
     vacancy rate' means a housing or rental vacancy rate of 2 
     percent or less.
       ``(4) Extremely old housing.--The term `extremely old 
     housing' means housing that is 45 years old or older.
       ``(5) Families.--The term `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)).
       ``(6) Fiscal distress; severe fiscal distress.--The terms 
     `fiscal distress' and `severe fiscal distress' have the 
     meanings given such terms in section 220(d).
       ``(7) Grant amounts.--The term `grant amounts' means 
     amounts that are provided to a participating jurisdiction 
     pursuant to subsection (d), (f), or (h) of section 294.
       ``(8) Indian tribe.--The term `Indian tribe' means a 
     federally recognized Indian tribe.
       ``(9) Insular area.--The term `insular area' has the 
     meaning given such term in section 104.
       ``(10) Participating local jurisdiction.--The term 
     `participating local jurisdiction' means, with respect to a 
     fiscal year--
       ``(A) any unit of general local government (as such term is 
     defined in section 104 (42 U.S.C. 12704) that qualifies as a 
     participating jurisdiction under section 216 (42 U.S.C. 
     12746) for such fiscal year; and
       ``(B) at the option of such a consortium, any consortium of 
     units of general local governments that is designated 
     pursuant to section 216 (42 U.S.C. 12746) as a participating 
     jurisdiction for purposes of title II.
       ``(11) Participating jurisdiction.--The term `participating 
     jurisdiction' means--
       ``(A) a State, insular area, or participating local 
     jurisdiction for which a grant is made under section 294(d);
       ``(B) an Indian tribe for which a grant is made under 
     section 294(f); or
       ``(C) a nonprofit or public entity for which a grant is 
     made under section 294(h).
       ``(12) 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.
       ``(13) Recipient.--The term `recipient' means an entity 
     that receives assistance from a participating jurisdiction, 
     pursuant to section 296(a), from grant amounts under this 
     subtitle of the participating jurisdiction.
       ``(14) Rural area.--The term `rural area' has the meaning 
     given such term in section 520 of the Housing Act of 1949 (42 
     U.S.C. 1490).
       ``(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 104.

     ``SEC. 300. INAPPLICABILITY OF HOME PROVISIONS.

       ``Except as specifically provided otherwise in this 
     subtitle, no requirement under, or provision of, subtitles B 
     through D of this title shall apply to assistance provided 
     under this subtitle.

     ``SEC. 301. REGULATIONS AND REPORTS.

       ``(a) Regulations.--Not later than 6 months after the date 
     of enactment of the National Affordable Housing Grant Act of 
     2007, the Secretary of Housing and Urban Development shall 
     promulgate regulations to carry out this subtitle, which 
     shall include regulations establishing the affordable housing 
     needs formula in accordance with section 294(a).
       ``(b) Reports on HOME Program Streamlining.--Not later than 
     the expiration of the 6-month period referred to in 
     subsection (a), the Secretary of Housing and Urban 
     Development and the Comptroller General of the United States 
     shall each submit to the Congress a report making 
     recommendations for streamlining the various programs for 
     assistance under this title, including the HOME Investment 
     Partnerships program under subtitle A, the Community Housing 
     Partnership program under subtitle B, the Downpayment 
     Assistance Initiative under subtitle E, and the National 
     Affordable Housing Grant Program under this subtitle.''.
       (b) Program Year for Matching Contributions.--Section 220 
     of the Cranston-Gonzalez National Affordable Housing Act (42 
     U.S.C. 12750) is amended--
       (1) in subsection (a)--
       (A) by striking ``a fiscal year'' and inserting ``a program 
     year of the jurisdiction''; and
       (B) by striking ``such fiscal year'' and inserting ``such 
     program year''; and
       (2) in subsection (d)--
       (A) in paragraph (1), by striking ``fiscal year'' and 
     inserting ``program year of the jurisdiction'';
       (B) in paragraph (3), by striking ``fiscal year'' each 
     place such term appears and inserting ``program year''; and
       (C) in paragraph (5), by striking ``fiscal year'' and 
     inserting ``program year of the jurisdiction''.

  The Acting CHAIRMAN. Pursuant to House Resolution 720, the gentleman 
from Texas (Mr. Neugebauer) and a Member opposed each will control 10 
minutes.
  The Chair recognizes the gentleman from Texas.
  Mr. NEUGEBAUER. Mr. Chairman, I yield myself such time as I may 
consume.
  I was really tempted here to let the chairman be my designee on this, 
with the hopes that I would have the same success on my amendment as he 
had on those that he was acting as designee on, but since I'm here, 
I'll act in my own behalf.
  Mr. Chairman, one of the things we've heard a lot today about is that 
there is a need for making sure that we are taking care of our most 
neediest Americans when it comes to their housing needs. What we've 
also learned, though, is that there are a lot of programs out there, 70 
something housing programs, 30 some odd that may be addressed as some 
form of housing for our low-income citizens.
  One of the things that I think the American people are kind of 
concerned about is they keep hearing that government solution to all of 
the problems. If we're not doing a good job with the programs we have, 
let's add another program, and I think they're getting kind of tired of 
that. So one of the things that my amendment does is it makes an 
existing program, it incorporates many of the good ideas, and may I 
say, Mr. Chairman, there are some good ideas that have come in this 
particular piece of legislation, updating it. And what I'm talking 
about is the HOME program. The HOME program currently does a lot of the 
functions. In fact, when you look at the HOME program in this bill, 
many of those overlap. And yet we're now going to separate into two 
different funds an affordable housing fund and a HOME program. Instead 
of using the combined resources of those two programs to help further 
the housing situation, we're going to have two different.
  When we talk about the fact that we're already spending over $28 
billion for affordable housing, low-income housing, and then we're 
going to take

[[Page 26989]]

money out of one pocket and put it over to an area separate from that, 
quite honestly, Congress will not have the opportunity to really sit 
down and assess, hey, where are the American people, where are the 
people that are the recipients of low-income money, the people who are 
benefiting from this housing, where are we getting the best bang for 
our buck? But instead, we are separating those programs. I don't think 
that is good policy.
  The other issue here is that many communities, almost every State in 
the Union, and I think like 350 or 360, maybe it's a larger number, I 
don't have it in front of me, communities are already participating in 
the HOME program, they already have some familiarity with that program. 
And so now we're going to take the ramp-up time of having to learn a 
new program, to write the rules for it, to do all of the things that it 
takes to get a new program off the ground. We're going to have to form 
a new branch of government within the Department of Housing to be able 
to ramp up and have the employees that it needs to do this, another 
inefficiency of adding additional programs to something that maybe 
we're not satisfied with. And I would agree, there may be some things 
that need to happen in the HOME program that would make it more 
relevant today. But, quite honestly, adding a new program I don't think 
is in the best interest of the American people. It's not a good, wise 
use of their taxpayer dollars. And I believe we can create a more 
efficient delivery system using an existing program.
  What my amendment also does is says, look, GAO, go in and analyze 
what's going on, work with the various housing partnerships, let's 
determine some of the things that we need to do to the HOME program. 
Let's make those changes, and then let's make the HOME program a better 
program incorporating many of the good ideas, even that we've seen in 
some of the amendments here.
  Mr. Chairman, we had, I believe, seven amendments from the Democratic 
side, unfortunately, and I appreciate the Rules Committee making mine 
in order, but I think we had some other good ideas from some of my 
colleagues on my side of the aisle that we could have incorporated into 
this legislation.
  So that's the reason I'm down on the floor today offering this 
amendment. I'm encouraging my colleagues on both sides of the aisle, if 
you're really serious about 2 or 3 things, and let's talk about those 
things; one, are you interested in making sure that we have the most 
efficient delivery system to our low-income families to make sure that 
they have housing? If you're interested in that. Secondly, if you want 
to do that in a way that's a good steward of the American taxpayer's 
dollars, that's another reason to vote for this amendment. And thirdly, 
if you believe that we ought to be able to prioritize our spending and 
not separate into a different fund, separate and aside from what we're 
already doing for a lot of our low-income housing families, then the 
Neugebauer amendment is the amendment that you should vote on. It will 
actually move us more quickly in a direction of being able to implement 
a lot of the things that I think people on both sides of the aisle want 
to do, and that is, make sure that we get the money out to these 
families that need our assistance and help.
  And with that, Mr. Chairman, I reserve the balance of my time.
  Mr. FRANK of Massachusetts. Mr. Chairman, I rise in opposition.
  The Acting CHAIRMAN. The gentleman is recognized for 10 minutes.
  Mr. FRANK of Massachusetts. Mr. Chairman, this is an unusual 
amendment. The actual author offered it, and the Member rising in 
opposition actually opposes it for the first time today. And I 
appreciate the cooperation we've had.
  I want to say that I appreciate, not just that, but the gentleman 
from Texas, who has been a very constructive member of the committee. 
We have some differences. That's why we have different parties. But we 
have a great deal in agreement. And the gentleman's expertise in the 
homebuilding field has been very helpful as our committee has gone 
forward. And here is, perhaps, a philosophical difference between us.
  The main difference here is that the gentleman's amendment, 
recognizing, as he does from his own experience, the value of 
additional housing construction, would do away with our two funding 
sources. Now, we chose to go in addition to the HOME program, which is 
the one program where there is a parallel, for a couple of reasons. 
First of all, the HOME program is, of course, subject to annual 
appropriations, and that's appropriate for most government work. But we 
did want to have in the government a program for housing construction 
that had a little bit more assurance for people than an annual 
appropriation. Appropriations get caught up in omnibus issues, CR 
issues. The trust fund will be outside of the kind of deadlock that we 
have had in the past and may, we hope not, but may have in the future. 
If you're trying to build housing, the notion that your funding has 
been slowed down because there has been a fight over some unrelated 
issue, like the debate about the Iraq war funding, could slow you down, 
we want to avoid that, so we keep the HOME program. But we have an 
additional program, and again, it's for the construction of affordable 
housing, unlike any other program, except HOME, and we want to give it 
some assurance to operate in a trust fund. And this is, to some extent, 
modeled after the highway trust fund. It is a trust fund that will 
still be subject to work by the Appropriations Committee, but it won't 
be bogged down as the rest of the government gets bogged down, and 
that's important when you are doing construction when you have an 
ongoing situation.
  Secondly, we do have two additional funding sources. Now, there is 
some debate about that. I do want to stress, in the FHA bill, which was 
already voted on by the House, we say in the first place that if any 
question arises about the solvency of the fund, if the FHA fund should 
appear to be in trouble, not a penny can go into the affordable housing 
fund that year. Only after the HUD Secretary has certified that the 
money won't be needed to hold down premiums or prevent insolvency will 
this go forward.
  We have said that by the creation of a new funding stream, namely, 
allowing an unlimited amount of home equity and mortgages, we get a lot 
of money that CBO made available. And I should note, by the way, that 
some of that money, as the gentleman from Texas, among others, have 
suggested, has gone to upgrade the computer system of the FHA. Some of 
it will go for a great increase in counseling to homeowners, which is, 
again, supported on both sides. A good chunk will be left over, we're 
not sure exactly how much, we hope it will be $200 million a year. But 
it only goes to the housing trust fund if it would otherwise have gone 
to the Treasury. There is zero chance, the way this bill is written, 
for it to force that kind of an increase. That, by the way, is why CBO 
gives us a flat score on this. There is no budget deficit situation 
here at all.
  Similarly, with Fannie Mae and Freddie Mac, and here I have to say 
some of my Republican colleagues have been a little inconsistent, the 
administration, some of them, they've been critical of Fannie Mae and 
Freddie Mac. They've said, you know, we give all these advantages to 
Fannie Mae and Freddie Mac, a line of credit, some people think they're 
government-run, there used to be government members on the board, 
although we will not have that if our bill passes, and here they are, 
they're making all these profits and they're not doing enough for 
public purposes. Well, in our Fannie and Freddie bill, we amend that to 
some extent by increasing the housing goals they have by dropping the 
credit they get from 100 percent to 80 percent immediately. But we also 
say, you know what? You've been doing pretty well, you're making a lot 
of money and your sales are doing well, so without in any way impinging 
on your mortgage functioning, we are going to take some of the profit 
you've made and put it in the affordable housing trust fund.
  By the way, I find it a little odd that people who have said that we 
should

[[Page 26990]]

basically reduce the portfolio of Fannie and Freddie and make them 
securitize more, which they believe will do more damage to their 
ability to function than anything else, that now they become very 
concerned when we talk about a housing trust fund. I should be clear 
that that does not describe the gentleman from Texas, who understands 
very well how best to help Fannie and Freddie. And I think we put 
through a bill that will enhance their ability to function while better 
regulating them.
  So, in other words, we have 800 or $900 million, we hope, in the 
first year, and we hope it will go up. And this is the main difference 
between us, it doesn't come from appropriated funds. And I believe we 
have written it so it will not interfere with either Fannie and Freddie 
or FHA's ability to function. And we do not create a new bureaucracy. 
We distribute it to the State and local housing funds. Indeed, many of 
the amendments that we've adopted here in agreement by both sides, and 
some that we adopted in committee, I was looking it over, in committee 
we adopted a number of amendments, more from the Republican side than 
the Democratic side because I don't have to worry about other people 
telling me where we are on that. We have, in every one of these 
amendments, increased the flexibility for the local housing trust 
funds.
  So with that, I hope that the substitute is defeated and that we will 
continue to improve this bill.
  Mr. Chairman, I reserve the balance of my time.
  Mr. NEUGEBAUER. Mr. Chairman, may I inquire as to how much time is 
remaining on both sides?
  The Acting CHAIRMAN. The gentleman from Texas has 5 minutes 
remaining; the gentleman from Massachusetts has 4\1/2\ minutes 
remaining.
  Mr. NEUGEBAUER. At this time, I would like to yield 3 minutes to the 
gentlewoman from Illinois (Mrs. Biggert), who is the former ranking 
member of the Housing Subcommittee.
  Mrs. BIGGERT. I thank the gentleman for yielding.
  Mr. Chairman, I rise in support of the Neugebauer amendment. I think 
that we have to look at bureaucracy. And I must say that I think that 
the existing federally administered program designed to serve the 
housing needs of low-income Americans, the HOME Investment Partnership 
Program, is a program that's already in place. It has the personnel 
system, the regulatory oversight in place to accomplish the same 
objective as the National Housing Trust Fund. And instead of creating a 
new Federal bureaucracy to address low-income housing availability, I 
think we should focus our efforts on improving the HOME program. Mr. 
Neugebauer's amendment creates a pilot program, and I think we could 
call it ``HOME Lite,'' within the HOME program. And so instead of 
reinventing the wheel and establishing another Federal trust fund and a 
brand new program, I support improving and being creative with an 
existing program.
  If we look at the HOME program, the staff is already participating, 
they understand the jurisdictions the HOME program will be looking at, 
and so there is no learning curve for implementation. Revitalizing the 
HOME program will be more efficient by having less start-up costs, 
administrative costs, and the funds will be distributed to the project 
sooner, and not later.

                              {time}  1430

  At the same time, I think the national trust fund would be 
administered by exactly the same people who will be administering the 
program in the States and at the local level, so it will be able to 
allow them to operate under 1 program instead of 2 separate programs 
with a little different objectives but not much. So they will be doing 
the same thing twice and having to work with 2 different bureaucracies 
to establish an affordable housing program. So I think there might be 
some changes to the HOME program to align it more closely to some of 
the things that have been spoken about in the trust fund program. But I 
think that this would be a good compromise and would still have the 
trust program that will provide the affordable funding but do it 
through HUD at a program that has already been established.
  Mr. FRANK of Massachusetts. I yield back the balance of my time.
  Mr. NEUGEBAUER. Mr. Chairman, I just want to close by saying that 50 
States, 585 local communities, are already using the HOME program as a 
model for building and developing low-income housing in their 
communities. It just makes sense that we take an existing program, make 
the revisions that have really made, there are some good ideas that 
have come through this legislation, let's incorporate those ideas into 
the HOME program. Let's take an existing vehicle. Let's ask the United 
States Congress to prioritize where they think that we are getting the 
most bang for our bucks as we deliver low-income housing programs for 
the American people and for the people that need them so badly. Let's 
do it right. The right way to do it is to take this existing program 
and fold into it many of the good ideas that have come from that.
  Mr. Chairman, I urge my colleagues to support this amendment.
  I yield back the balance of my time.
  The Acting CHAIRMAN (Mr. Ross). The question is on the amendment 
offered by the gentleman from Texas (Mr. Neugebauer).
  The question was taken; and the Acting Chairman announced that the 
noes appeared to have it.
  Mr. NEUGEBAUER. Mr. Chairman, I demand a recorded vote.
  The Acting CHAIRMAN. Pursuant to clause 6 of rule XVIII, further 
proceedings on the amendment offered by the gentleman from Texas will 
be postponed.


                  Announcement by the Acting Chairman

  The Acting CHAIRMAN. Pursuant to clause 6 of rule XVIII, proceedings 
will now resume on those amendments printed in House Report 110-369 on 
which further proceedings were postponed, in the following order:
  Amendment No. 1 by Mr. Frank of Massachusetts;
  Amendment No. 8 by Mr. Neugebauer of Texas.
  The first electronic vote will be conducted as a 15-minute vote. 
Remaining electronic votes will be conducted as 5-minute votes.


         Amendment No. 1 Offered by Mr. Frank of Massachusetts

  The Acting CHAIRMAN. The unfinished business is the demand for a 
recorded vote on the amendment offered by the gentleman from 
Massachusetts (Mr. Frank) on which further proceedings were postponed 
and on which the ayes prevailed by voice vote.
  The Clerk will redesignate the amendment.
  The Clerk redesignated the amendment.


                             Recorded Vote

  The Acting CHAIRMAN. A recorded vote has been demanded.
  A recorded vote was ordered.
  The vote was taken by electronic device, and there were--ayes 418, 
noes 2, not voting 16, as follows:

                             [Roll No. 955]

                               AYES--418

     Abercrombie
     Ackerman
     Aderholt
     Akin
     Alexander
     Allen
     Altmire
     Andrews
     Arcuri
     Baca
     Bachmann
     Bachus
     Baird
     Baker
     Baldwin
     Barrett (SC)
     Barrow
     Bartlett (MD)
     Barton (TX)
     Becerra
     Berkley
     Berman
     Berry
     Biggert
     Bilbray
     Bilirakis
     Bishop (GA)
     Bishop (NY)
     Bishop (UT)
     Blackburn
     Blumenauer
     Blunt
     Boehner
     Bonner
     Bono
     Boozman
     Boswell
     Boucher
     Boustany
     Boyd (FL)
     Boyda (KS)
     Brady (PA)
     Brady (TX)
     Braley (IA)
     Broun (GA)
     Brown (SC)
     Brown, Corrine
     Brown-Waite, Ginny
     Buchanan
     Burgess
     Burton (IN)
     Butterfield
     Buyer
     Calvert
     Camp (MI)
     Campbell (CA)
     Cannon
     Cantor
     Capito
     Capps
     Capuano
     Cardoza
     Carnahan
     Carney
     Carter
     Castle
     Castor
     Chabot
     Chandler
     Christensen
     Clarke
     Clay
     Cleaver
     Clyburn
     Coble
     Cohen
     Cole (OK)
     Conaway
     Conyers
     Cooper
     Costa
     Costello
     Courtney
     Cramer
     Crenshaw
     Crowley
     Cuellar
     Culberson
     Cummings
     Davis (AL)
     Davis (CA)
     Davis (IL)
     Davis (KY)
     Davis, David
     Davis, Lincoln
     Davis, Tom
     Deal (GA)
     DeFazio
     Delahunt
     DeLauro
     Dent
     Diaz-Balart, L.
     Diaz-Balart, M.
     Dicks
     Dingell
     Doggett
     Donnelly
     Doolittle
     Doyle
     Drake
     Dreier
     Duncan
     Edwards

[[Page 26991]]


     Ehlers
     Ellison
     Ellsworth
     Emanuel
     Emerson
     Engel
     English (PA)
     Eshoo
     Etheridge
     Everett
     Fallin
     Farr
     Fattah
     Feeney
     Ferguson
     Filner
     Flake
     Forbes
     Fortenberry
     Fortuno
     Fossella
     Foxx
     Frank (MA)
     Franks (AZ)
     Frelinghuysen
     Gallegly
     Garrett (NJ)
     Gerlach
     Giffords
     Gilchrest
     Gillibrand
     Gingrey
     Gohmert
     Gonzalez
     Goode
     Goodlatte
     Gordon
     Granger
     Graves
     Green, Al
     Green, Gene
     Grijalva
     Gutierrez
     Hall (NY)
     Hall (TX)
     Hare
     Harman
     Hastert
     Hastings (FL)
     Hastings (WA)
     Hayes
     Heller
     Hensarling
     Herger
     Herseth Sandlin
     Higgins
     Hill
     Hinchey
     Hinojosa
     Hirono
     Hobson
     Hodes
     Hoekstra
     Holden
     Holt
     Honda
     Hooley
     Hoyer
     Hulshof
     Hunter
     Inglis (SC)
     Inslee
     Israel
     Issa
     Jackson (IL)
     Jackson-Lee (TX)
     Jefferson
     Johnson (GA)
     Johnson, Sam
     Jones (NC)
     Jones (OH)
     Jordan
     Kagen
     Kanjorski
     Kaptur
     Keller
     Kennedy
     Kildee
     Kilpatrick
     Kind
     King (IA)
     King (NY)
     Kingston
     Kirk
     Klein (FL)
     Kline (MN)
     Knollenberg
     Kucinich
     Kuhl (NY)
     LaHood
     Lamborn
     Lampson
     Langevin
     Lantos
     Larsen (WA)
     Larson (CT)
     Latham
     LaTourette
     Lee
     Levin
     Lewis (CA)
     Lewis (GA)
     Lewis (KY)
     Linder
     Lipinski
     LoBiondo
     Loebsack
     Lofgren, Zoe
     Lowey
     Lucas
     Lungren, Daniel E.
     Lynch
     Mack
     Mahoney (FL)
     Manzullo
     Marchant
     Markey
     Marshall
     Matheson
     Matsui
     McCarthy (CA)
     McCarthy (NY)
     McCaul (TX)
     McCollum (MN)
     McCotter
     McCrery
     McDermott
     McGovern
     McHenry
     McHugh
     McIntyre
     McKeon
     McMorris Rodgers
     McNerney
     McNulty
     Meek (FL)
     Meeks (NY)
     Melancon
     Mica
     Michaud
     Miller (FL)
     Miller (MI)
     Miller (NC)
     Miller, George
     Mitchell
     Mollohan
     Moore (KS)
     Moore (WI)
     Moran (KS)
     Moran (VA)
     Murphy (CT)
     Murphy, Patrick
     Murphy, Tim
     Murtha
     Musgrave
     Myrick
     Napolitano
     Neal (MA)
     Neugebauer
     Norton
     Nunes
     Oberstar
     Obey
     Olver
     Ortiz
     Pallone
     Pascrell
     Pastor
     Paul
     Payne
     Pearce
     Pence
     Perlmutter
     Peterson (MN)
     Petri
     Pickering
     Pitts
     Platts
     Poe
     Pomeroy
     Porter
     Price (GA)
     Price (NC)
     Pryce (OH)
     Putnam
     Radanovich
     Rahall
     Ramstad
     Rangel
     Regula
     Rehberg
     Renzi
     Reyes
     Reynolds
     Richardson
     Rodriguez
     Rogers (AL)
     Rogers (MI)
     Rohrabacher
     Ros-Lehtinen
     Roskam
     Ross
     Rothman
     Roybal-Allard
     Royce
     Ruppersberger
     Rush
     Ryan (OH)
     Ryan (WI)
     Salazar
     Sali
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Saxton
     Schakowsky
     Schiff
     Schmidt
     Schwartz
     Scott (GA)
     Scott (VA)
     Sensenbrenner
     Serrano
     Sessions
     Sestak
     Shadegg
     Shays
     Shea-Porter
     Sherman
     Shimkus
     Shuler
     Shuster
     Simpson
     Sires
     Skelton
     Slaughter
     Smith (NE)
     Smith (NJ)
     Smith (TX)
     Smith (WA)
     Snyder
     Solis
     Souder
     Space
     Spratt
     Stark
     Stearns
     Stupak
     Sullivan
     Sutton
     Tancredo
     Tanner
     Tauscher
     Taylor
     Terry
     Thompson (CA)
     Thompson (MS)
     Thornberry
     Tiahrt
     Tiberi
     Tierney
     Towns
     Turner
     Udall (CO)
     Udall (NM)
     Upton
     Van Hollen
     Velazquez
     Visclosky
     Walberg
     Walden (OR)
     Walsh (NY)
     Walz (MN)
     Wamp
     Wasserman Schultz
     Waters
     Watson
     Watt
     Waxman
     Welch (VT)
     Weldon (FL)
     Weller
     Westmoreland
     Wexler
     Whitfield
     Wicker
     Wilson (NM)
     Wilson (SC)
     Wolf
     Woolsey
     Wu
     Wynn
     Yarmuth
     Young (AK)
     Young (FL)

                                NOES--2

       
     Nadler
       
     Weiner

                             NOT VOTING--16

     Bean
     Bordallo
     Boren
     Carson
     Cubin
     DeGette
     Faleomavaega
     Jindal
     Johnson (IL)
     Johnson, E. B.
     Maloney (NY)
     Miller, Gary
     Peterson (PA)
     Reichert
     Rogers (KY)
     Wilson (OH)

                              {time}  1457

  Mr. WEINER changed his vote from ``aye'' to ``no.''
  Mrs. MYRICK and Messrs. CAMPBELL of California, TANCREDO, MILLER of 
Florida, TERRY, BRADY of Texas, WILSON of South Carolina and BILIRAKIS 
changed their vote from ``no'' to ``aye.''
  So the amendment was agreed to.
  The result of the vote was announced as above recorded.


               Amendment No. 8 Offered by Mr. Neugebauer

  The Acting CHAIRMAN. The unfinished business is the demand for a 
recorded vote on the amendment offered by the gentleman from Texas (Mr. 
Neugebauer) on which further proceedings were postponed and on which 
the noes prevailed by voice vote.
  The Clerk will redesignate the amendment.
  The Clerk redesignated the amendment.


                             Recorded Vote

  The Acting CHAIRMAN. A recorded vote has been demanded.
  A recorded vote was ordered.
  The Acting CHAIRMAN. This will be a 5-minute vote.
  The vote was taken by electronic device, and there were--ayes 163, 
noes 257, not voting 16, as follows:

                             [Roll No. 956]

                               AYES--163

     Aderholt
     Akin
     Alexander
     Bachmann
     Bachus
     Baker
     Barrett (SC)
     Bartlett (MD)
     Barton (TX)
     Biggert
     Bilbray
     Bilirakis
     Bishop (UT)
     Blackburn
     Blunt
     Boehner
     Bonner
     Bono
     Boozman
     Boustany
     Brady (TX)
     Broun (GA)
     Brown (SC)
     Brown-Waite, Ginny
     Buchanan
     Burgess
     Burton (IN)
     Buyer
     Calvert
     Camp (MI)
     Campbell (CA)
     Cannon
     Cantor
     Carter
     Chabot
     Coble
     Conaway
     Crenshaw
     Culberson
     Davis (KY)
     Davis, David
     Deal (GA)
     Diaz-Balart, L.
     Diaz-Balart, M.
     Doolittle
     Drake
     Dreier
     Duncan
     Ehlers
     Everett
     Fallin
     Feeney
     Forbes
     Fortenberry
     Fossella
     Foxx
     Franks (AZ)
     Gallegly
     Garrett (NJ)
     Gilchrest
     Gingrey
     Gohmert
     Goode
     Goodlatte
     Granger
     Hall (TX)
     Hastert
     Hastings (WA)
     Hayes
     Heller
     Hensarling
     Herger
     Hobson
     Hulshof
     Hunter
     Inglis (SC)
     Issa
     Johnson, Sam
     Jones (NC)
     Jordan
     Keller
     King (IA)
     King (NY)
     Kingston
     Kirk
     Kline (MN)
     Knollenberg
     Kuhl (NY)
     LaHood
     Lamborn
     Latham
     Lewis (CA)
     Lewis (KY)
     Linder
     Lucas
     Lungren, Daniel E.
     Mack
     Manzullo
     Marchant
     McCarthy (CA)
     McCaul (TX)
     McCotter
     McCrery
     McHenry
     McKeon
     McMorris Rodgers
     Mica
     Miller (FL)
     Miller (MI)
     Moran (KS)
     Musgrave
     Myrick
     Neugebauer
     Nunes
     Paul
     Pearce
     Pence
     Petri
     Pitts
     Poe
     Porter
     Price (GA)
     Pryce (OH)
     Putnam
     Radanovich
     Regula
     Rehberg
     Reynolds
     Rogers (AL)
     Rogers (MI)
     Rohrabacher
     Ros-Lehtinen
     Roskam
     Royce
     Ryan (WI)
     Sali
     Schmidt
     Sensenbrenner
     Sessions
     Shadegg
     Shimkus
     Shuster
     Smith (NE)
     Smith (TX)
     Souder
     Stearns
     Sullivan
     Tancredo
     Terry
     Thornberry
     Tiahrt
     Tiberi
     Turner
     Wamp
     Weldon (FL)
     Weller
     Westmoreland
     Wicker
     Wilson (NM)
     Wilson (SC)
     Wolf
     Young (AK)
     Young (FL)

                               NOES--257

     Abercrombie
     Ackerman
     Allen
     Altmire
     Andrews
     Arcuri
     Baca
     Baird
     Baldwin
     Barrow
     Becerra
     Berkley
     Berman
     Berry
     Bishop (GA)
     Bishop (NY)
     Blumenauer
     Bordallo
     Boswell
     Boucher
     Boyd (FL)
     Boyda (KS)
     Brady (PA)
     Braley (IA)
     Brown, Corrine
     Butterfield
     Capito
     Capps
     Capuano
     Cardoza
     Carnahan
     Carney
     Castle
     Castor
     Chandler
     Christensen
     Clarke
     Clay
     Cleaver
     Clyburn
     Cohen
     Conyers
     Cooper
     Costa
     Costello
     Courtney
     Cramer
     Crowley
     Cuellar
     Cummings
     Davis (AL)
     Davis (CA)
     Davis (IL)
     Davis, Lincoln
     Davis, Tom
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Dent
     Dicks
     Dingell
     Doggett
     Donnelly
     Doyle
     Edwards
     Ellison
     Ellsworth
     Emanuel
     Emerson
     Engel
     English (PA)
     Eshoo
     Etheridge
     Farr
     Fattah
     Ferguson
     Filner
     Flake
     Fortuno
     Frank (MA)
     Frelinghuysen
     Gerlach
     Giffords
     Gillibrand
     Gonzalez
     Gordon
     Graves
     Green, Al
     Green, Gene
     Grijalva
     Gutierrez
     Hall (NY)
     Hare
     Harman
     Hastings (FL)
     Herseth Sandlin
     Higgins
     Hill
     Hinchey
     Hinojosa
     Hirono
     Hodes
     Hoekstra
     Holden
     Holt
     Honda
     Hooley
     Hoyer
     Inslee
     Israel
     Jackson (IL)
     Jackson-Lee (TX)
     Jefferson
     Johnson (GA)
     Jones (OH)
     Kagen
     Kanjorski
     Kaptur
     Kennedy
     Kildee
     Kilpatrick
     Kind
     Klein (FL)
     Kucinich
     Lampson
     Langevin
     Lantos
     Larsen (WA)
     Larson (CT)
     LaTourette
     Lee
     Levin
     Lewis (GA)
     Lipinski
     LoBiondo
     Loebsack
     Lofgren, Zoe
     Lowey
     Lynch
     Mahoney (FL)
     Markey
     Marshall
     Matheson
     Matsui
     McCarthy (NY)
     McCollum (MN)
     McDermott
     McGovern
     McHugh
     McIntyre
     McNerney
     McNulty
     Meek (FL)
     Meeks (NY)
     Melancon
     Michaud
     Miller (NC)
     Miller, George
     Mitchell
     Mollohan
     Moore (KS)
     Moore (WI)
     Moran (VA)
     Murphy (CT)
     Murphy, Patrick
     Murphy, Tim
     Murtha
     Nadler
     Napolitano
     Neal (MA)
     Norton
     Oberstar
     Obey
     Olver
     Ortiz
     Pallone
     Pascrell
     Pastor
     Payne
     Perlmutter
     Peterson (MN)
     Pickering
     Platts
     Pomeroy
     Price (NC)
     Rahall
     Ramstad
     Renzi
     Reyes
     Richardson

[[Page 26992]]


     Rodriguez
     Ross
     Rothman
     Roybal-Allard
     Ruppersberger
     Rush
     Ryan (OH)
     Salazar
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Saxton
     Schakowsky
     Schiff
     Schwartz
     Scott (GA)
     Scott (VA)
     Serrano
     Sestak
     Shays
     Shea-Porter
     Sherman
     Shuler
     Simpson
     Sires
     Skelton
     Slaughter
     Smith (NJ)
     Smith (WA)
     Snyder
     Solis
     Space
     Spratt
     Stark
     Stupak
     Sutton
     Tanner
     Tauscher
     Taylor
     Thompson (CA)
     Thompson (MS)
     Tierney
     Towns
     Udall (CO)
     Udall (NM)
     Upton
     Van Hollen
     Velazquez
     Visclosky
     Walberg
     Walden (OR)
     Walsh (NY)
     Walz (MN)
     Wasserman Schultz
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Welch (VT)
     Wexler
     Whitfield
     Woolsey
     Wu
     Wynn
     Yarmuth

                             NOT VOTING--16

     Bean
     Boren
     Carson
     Cole (OK)
     Cubin
     Faleomavaega
     Jindal
     Johnson (IL)
     Johnson, E. B.
     Maloney (NY)
     Miller, Gary
     Peterson (PA)
     Rangel
     Reichert
     Rogers (KY)
     Wilson (OH)


                  Announcement by the Acting Chairman

  The Acting CHAIRMAN (during the vote). Members are advised there are 
2 minutes remaining on this vote.

                              {time}  1505

  Ms. BORDALLO changed her vote from ``aye'' to ``no.''
  So the amendment was rejected.
  The result of the vote was announced as above recorded.
  The Acting CHAIRMAN. The question is on the committee amendment in 
the nature of a substitute, as amended.
  The committee amendment in the nature of a substitute, as amended, 
was agreed to.
  The Acting CHAIRMAN. Under the rule, the Committee rises.
  Accordingly, the Committee rose; and the Speaker pro tempore (Mrs. 
Tauscher) having assumed the chair, Mr. Ross, Acting Chairman of the 
Committee of the Whole House on the state of the Union, reported that 
that Committee, having had under consideration the bill (H.R. 2895) to 
establish the National Affordable Housing Trust Fund in the Treasury of 
the United States to provide for the construction, rehabilitation, and 
preservation of decent, safe, and affordable housing for low-income 
families, pursuant to House Resolution 720, he reported the bill back 
to the House with an amendment adopted by the Committee of the Whole.
  The SPEAKER pro tempore. Under the rule, the previous question is 
ordered.
  Is a separate vote demanded on any amendment to the amendment 
reported from the Committee of the Whole? If not, the question is on 
the amendment.
  The amendment was agreed to.
  The SPEAKER pro tempore. The question is on the engrossment and third 
reading of the bill.
  The bill was ordered to be engrossed and read a third time, and was 
read the third time.


              Motion to Recommit Offered by Mrs. Musgrave

  Mrs. MUSGRAVE. Madam Speaker, I offer a motion to recommit.
  The SPEAKER pro tempore. Is the gentlewoman opposed to the bill?
  Mrs. MUSGRAVE. Yes, in its current form.
  The SPEAKER pro tempore. The Clerk will report the motion to 
recommit.
  The Clerk read as follows:

       Mrs. Musgrave of Colorado moves to recommit the bill H.R. 
     2895 to the Committee on Financial Services with instructions 
     to report the same back to the House promptly with the 
     following amendments:
       Page 47, after line 8, insert the following:
       ``(d) Work Requirement for Residents.--
       ``(1) In general.--Except as provided in this subsection 
     and notwithstanding any other provision of this Act, as a 
     condition of residency of a family in any dwelling unit in 
     rental housing or owner-occupied housing for which assistance 
     is or has been provided at any time with any Trust Fund grant 
     amounts, each member of the family who is 18 years of age or 
     older shall perform not fewer than 20 hours of approved work 
     activities (as such term is defined in section 407(d) of the 
     Social Security Act (42 U.S.C. 607(d))) per month.
       ``(2) Exemption.--The Secretary of Housing and Urban 
     Development shall provide an exemption from the applicability 
     of paragraph (1) for any individual family member who--
       ``(A) is 62 years of age or older;
       ``(B) is a blind or disabled individual, as defined under 
     section 216(i)(1) or 1614 of the Social Security Act (42 
     U.S.C. 416(i)(1); 1382c), and who is unable to comply with 
     this section, or is a primary caretaker of such individual;
       ``(C) is engaged in a work activity (as such term is 
     defined in section 407(d) of the Social Security Act (42 
     U.S.C. 607(d)), as in effect on and after July 1, 1997));
       ``(D) meets the requirements for being exempted from having 
     to engage in a work activity under the State program funded 
     under part A of title IV of the Social Security Act (42 
     U.S.C. 601 et seq.) or under any other welfare program of the 
     State in which the public housing agency administering rental 
     assistance described in subsection (a) is located, including 
     a State-administered welfare-to-work program;
       ``(E) is in a family receiving assistance under a State 
     program funded under part A of title IV of the Social 
     Security Act (42 U.S.C. 601 et seq.) or under any other 
     welfare program of the State in which the public housing 
     agency administering such rental assistance is located, 
     including a State-administered welfare-to-work program, and 
     has not been found by the State or other administering entity 
     to be in noncompliance with such program; or
       ``(F) is a single custodial parent caring for a child who 
     has not attained 6 years of age, and the individual proves 
     that the individual has a demonstrated inability (as 
     determined by the State) to obtain needed child care, for one 
     or more of the following reasons:
       ``(i) Unavailability of appropriate child care within a 
     reasonable distance from the individual's home or work site.
       ``(ii) Unavailability or unsuitability of informal child 
     care by a relative or under other arrangements.
       ``(iii) Unavailability of appropriate and affordable formal 
     child care arrangements.
       ``(3) Administration.--A grantee providing assistance with 
     Trust Fund grant amounts may administer the work activities 
     requirement under this subsection directly, through a 
     resident organization, or through a contractor having 
     experience in administering work activities programs within 
     the jurisdiction of the grantee. The Secretary may establish 
     qualifications for such organizations and contractors.''.

  Mrs. MUSGRAVE (during the reading). Madam Speaker, I ask unanimous 
consent that the motion to recommit be considered as read and printed 
in the Record.
  The SPEAKER pro tempore. Is there objection to the request of the 
gentlewoman from Colorado?
  There was no objection.
  The SPEAKER pro tempore. The gentlewoman from Colorado is recognized 
for 5 minutes.
  Mrs. MUSGRAVE. Madam Speaker, without question, as we have heard here 
today, there is need in this country for affordable housing, 
particularly for the elderly and the disabled. But when government-
financed, low-income housing is occupied by able-bodied adults who have 
chosen not to work, they are displacing these very people who are the 
most needy; the elderly, the disabled.
  In 1996, Congress and President Clinton agreed that able-bodied 
adults ought to be required to work if they are going to receive 
government welfare. Today the proposal that I am putting forward to 
amend this bill is to extend this same commonsense requirement to the 
new housing financed by this bill.
  I just want to make it very clear, Madam Speaker, this proposal does 
not apply to the elderly or the disabled or single parents of children 
under 6 years of age who are unable to find appropriate and affordable 
child care, in addition to many others. But I think we can realize, if 
you are able-bodied, capable of working or even applying for a job, 
then American taxpayers expect that in exchange for this taxpayer-
financed housing, you will commit to at least 20 hours of work 
activities per month. That is minimal part-time work. And work 
activities can include job training, community service programs, and 
even providing child care. The work activities requirement is taken 
from the current standard under the Federal welfare reform program.
  I fully expect that the most able-bodied adults who occupy housing 
financed by this bill will already meet the standards laid out in my 
amendment. This amendment simply guarantees that taxpayer-financed 
housing isn't going to turn into free housing for able-bodied adults 
who are unwilling to work or contribute to society.
  I believe that we should be in the business of providing low-income 
Americans who are struggling for stability with a hand up, not a 
handout.

[[Page 26993]]

  If you were part of the bipartisan coalition who supported including 
work requirements in welfare reform, then I strongly urge you to 
support this proposal as well.
  Madam Speaker, I yield back the balance of my time.
  Mr. FRANK of Massachusetts. Madam Speaker, I rise to try to save the 
bill from this effort to kill it.
  The SPEAKER pro tempore. Is the gentleman opposed to the motion?
  Mr. FRANK of Massachusetts. Yes.
  The SPEAKER pro tempore. The gentleman from Massachusetts is 
recognized for 5 minutes.
  Mr. FRANK of Massachusetts. First, if this were a serious effort to 
put on a work program, it might have been offered as an amendment to 
the bill. It wasn't offered before the Rules Committee.
  Secondly, it would have said ``report back forthwith,'' and it would 
have been voted on and it would have been added. It says ``promptly.'' 
Now it is true that if we were to adopt a motion to recommit that says 
``promptly,'' it would go back to the committee.
  Our committee is a fairly busy one. We have the subprime issue before 
us. We have credit card reform issues. House floor time is fairly busy. 
I am told there are Members who don't think working here on Friday is 
the best thing that has ever happened to them. We are getting towards 
the end of this session. We have the appropriations bills. So the 
choice of ``promptly'' rather than ``forthwith'' is clearly motivated 
by animus against the bill.
  Having failed in several tries to kill the bill as a whole, they now 
say, let's do it this way. And on its own merits, here is the problem. 
I have not been a supporter of the work requirement within the public 
housing area, but at least in public housing you have administered a 
framework where it can be applied, although I think inappropriately.
  Here we are talking about a program whereby the Federal funds will be 
distributed. And by the way, they are not mostly taxpayer; they are 
shareholders of Fannie Mae and Freddie Mac dollars in the largest 
amount. But what we are going to do is distribute this money to 
hundreds of local housing funds, State and local funds. You talk about 
unfunded mandates. This says to all of the grantees, the Catholic 
Church in some places, or B'nai Brith housing or other local housing 
groups, Habitat for Humanity or any of the others, you must, in 
addition to building the housing, undertake to administer this kind of 
volunteer work program. Lest anyone think this is something that they 
can do easily, read the third page of the recommittal motion.

                              {time}  1515

  ``Administration. A grantee providing assistance with Trust Fund 
grant amounts may administer the work activities requirement under this 
subsection directly, through a resident organization, or through a 
contractor having experience in administering work activities programs 
within the jurisdiction of the grantee.''
  This takes some of the limited amount of money that would be 
available for housing and creates another new set of contractors. Maybe 
Blackwater will lay down their guns and come over here now when they 
get run out of Iraq and so a whole new set of contractors will be 
dealing with this. And the organizations that get this money, they are 
religious organizations, they are nonprofits, they are homebuilders. 
They will now have this new mandate to go and make people work, and it 
becomes a complicated one.
  Here's what it says. For example, if you are ``a single custodial 
parent for a child who has not attained 6 years of age,'' then you have 
to go out and do this volunteer work for 20 hours a week, unless you 
can show that you couldn't get child care. You've got to show that it's 
unavailable. There are three different kinds of paragraphs. It's a very 
complicated thing to administer.
  So you say to people, you know what, thank you for helping build 
affordable housing, thank you to the archdiocese, thank you to the 
Methodists, thank you to Habitat for Humanity, thank you to these 
charitable groups. Oh, and by the way, you are now in charge of making 
the parents of small children go to work unless they have first shown 
to you the unavailability of child care, and you have to go out and 
hire somebody to administer this for you.
  So, even if it were ``forthwith,'' I would be opposed to it, but 
``promptly'' means that the people who are opposed to using funding to 
help build affordable housing want to at best delay the bill, and maybe 
if they're lucky enough, because they can combine this with other 
filibusters, kill it.
  This is a very difficult program to administer. It is not one for 
which there has been any demand. I guarantee you it will be strongly 
opposed by all of the organizations, the charitable and nonprofit 
organizations, that will be told to administer this housing. It is an 
unfair imposition on some of the best-motivated organizations and 
people. It doesn't give them any money to do it. It gives them this 
very difficult task. It delays the bill at best, and I hope it is 
defeated for what it is meant to be, an effort to derail a bill that 
can't be derailed in a more straightforward fashion.
  Madam Speaker, I yield back the balance of my time.


                        Parliamentary Inquiries

  Mr. WESTMORELAND. Madam Speaker, parliamentary inquiry.
  The SPEAKER pro tempore. The gentleman from Georgia will state his 
parliamentary inquiry.
  Mr. WESTMORELAND. Madam Speaker, is it not true that if, indeed, this 
motion passed that this bill could be reported back to the committee or 
committees to which it has been designated, and then it could be 
reported back to the whole House tomorrow?
  The SPEAKER pro tempore. As the Chair affirmed on May 24, 2000, the 
adoption of a motion to recommit with instructions to report back 
promptly sends the bill to committee, whose eventual report, if any, 
would not be immediately before the House. Unlike the case of a motion 
to recommit with instructions to report back forthwith, a motion to 
recommit with ``non-forthwith'' instructions would not occasion an 
immediate report on the floor. As the Chair put it on the cited 
occasion, ``at some subsequent time, the committee could meet and 
report the bill back to the House.'' But the Chair cannot say what in 
the rules of the committee might constrain the timing of any action it 
might take. Neither can the Chair render an advisory opinion whether 
points of order available under the rules of the House might preclude 
further proceedings on the floor.
  Mr. FRANK of Massachusetts. Parliamentary inquiry.
  The SPEAKER pro tempore. The gentleman from Massachusetts will state 
his parliamentary inquiry.
  Mr. FRANK of Massachusetts. Madam Speaker, is there anything in this 
recommittal motion that would allow me, as chairman of the committee, 
to ignore the rule that requires a 3-day notice before there is a 
markup, which would seem to me to make it impossible for me to report 
it tomorrow, on the day of a funeral, very sensitive, but is there 
anything in this amendment that would waive the 3-day requirement for a 
markup before we could proceed?
  The SPEAKER pro tempore. The Chair cannot interpret the text of the 
motion.
  Mr. FRANK of Massachusetts. Well, then, let me ask in general. Does a 
recommittal motion waive the rules----
  The SPEAKER pro tempore. The gentleman will suspend.
  Does the gentleman have a further parliamentary inquiry?
  Mr. FRANK of Massachusetts. Further parliamentary inquiry. Is there 
anything in this process that would allow the chairman of the committee 
to waive the requirement in the rules that there be at least 3 days 
before there can be a markup in committee?
  The SPEAKER pro tempore. The Chair cannot interpret the rules of a 
standing committee.
  Mr. FRANK of Massachusetts. So much for tomorrow, Madam Speaker.
  Mr. WESTMORELAND. Further parliamentary inquiry.

[[Page 26994]]

  The SPEAKER pro tempore. The gentleman from Georgia will state his 
parliamentary inquiry.
  Mr. WESTMORELAND. Is the short version of your answer that it could 
be reported back tomorrow, the next legislative day?
  The SPEAKER pro tempore. The Chair has responded.
  Mr. FRANK of Massachusetts. Madam Speaker, can the standing rules of 
a committee be waived by actions on the floor?
  The SPEAKER pro tempore. The gentleman's question is hypothetical to 
this case.
  Without objection, the previous question is ordered on the motion to 
recommit.
  There was no objection.
  The SPEAKER pro tempore. The question is on the motion to recommit.
  The question was taken; and the Speaker pro tempore announced that 
the noes appeared to have it.


                             Recorded Vote

  Mrs. MUSGRAVE. Madam Speaker, I demand a recorded vote.
  A recorded vote was ordered.
  The SPEAKER pro tempore. Pursuant to clause 9 of rule XX, the Chair 
will reduce to 5 minutes the minimum time for any electronic vote on 
the question of passage.
  The vote was taken by electronic device, and there were--ayes 199, 
noes 218, not voting 14, as follows:

                             [Roll No. 957]

                               AYES--199

     Aderholt
     Akin
     Alexander
     Altmire
     Bachmann
     Bachus
     Barrett (SC)
     Barrow
     Bartlett (MD)
     Barton (TX)
     Biggert
     Bilbray
     Bilirakis
     Bishop (UT)
     Blackburn
     Blunt
     Boehner
     Bonner
     Bono
     Boozman
     Boustany
     Brady (TX)
     Broun (GA)
     Brown (SC)
     Brown-Waite, Ginny
     Buchanan
     Burgess
     Burton (IN)
     Buyer
     Calvert
     Camp (MI)
     Campbell (CA)
     Cannon
     Cantor
     Capito
     Carney
     Carter
     Castle
     Chabot
     Coble
     Cole (OK)
     Conaway
     Crenshaw
     Culberson
     Davis (KY)
     Davis, David
     Davis, Tom
     Deal (GA)
     Dent
     Diaz-Balart, L.
     Diaz-Balart, M.
     Doolittle
     Drake
     Dreier
     Duncan
     Ehlers
     Emerson
     English (PA)
     Everett
     Fallin
     Feeney
     Ferguson
     Flake
     Forbes
     Fortenberry
     Fossella
     Foxx
     Franks (AZ)
     Frelinghuysen
     Gallegly
     Garrett (NJ)
     Gerlach
     Giffords
     Gilchrest
     Gingrey
     Gohmert
     Goode
     Goodlatte
     Granger
     Graves
     Hall (TX)
     Hastert
     Hastings (WA)
     Hayes
     Heller
     Hensarling
     Herger
     Hill
     Hobson
     Hoekstra
     Hulshof
     Hunter
     Inglis (SC)
     Issa
     Johnson, Sam
     Jones (NC)
     Jordan
     Keller
     King (IA)
     King (NY)
     Kingston
     Kirk
     Kline (MN)
     Knollenberg
     Kuhl (NY)
     LaHood
     Lamborn
     Latham
     Lewis (CA)
     Lewis (KY)
     Linder
     LoBiondo
     Lucas
     Lungren, Daniel E.
     Mack
     Mahoney (FL)
     Manzullo
     Marchant
     Marshall
     McCarthy (CA)
     McCaul (TX)
     McCotter
     McCrery
     McHenry
     McHugh
     McIntyre
     McKeon
     McMorris Rodgers
     Mica
     Miller (FL)
     Miller (MI)
     Mitchell
     Moran (KS)
     Murphy, Tim
     Musgrave
     Myrick
     Neugebauer
     Nunes
     Pearce
     Pence
     Petri
     Pickering
     Pitts
     Platts
     Poe
     Porter
     Price (GA)
     Pryce (OH)
     Putnam
     Radanovich
     Ramstad
     Regula
     Rehberg
     Renzi
     Reynolds
     Rogers (AL)
     Rogers (MI)
     Rohrabacher
     Ros-Lehtinen
     Roskam
     Royce
     Ryan (WI)
     Sali
     Saxton
     Schmidt
     Sensenbrenner
     Sessions
     Shadegg
     Shays
     Shimkus
     Shuster
     Simpson
     Smith (NE)
     Smith (NJ)
     Smith (TX)
     Souder
     Stearns
     Sullivan
     Tancredo
     Terry
     Thornberry
     Tiahrt
     Tiberi
     Turner
     Upton
     Walberg
     Walden (OR)
     Walsh (NY)
     Wamp
     Weldon (FL)
     Weller
     Westmoreland
     Whitfield
     Wicker
     Wilson (NM)
     Wilson (SC)
     Wolf
     Young (AK)
     Young (FL)

                               NOES--218

     Abercrombie
     Ackerman
     Allen
     Andrews
     Arcuri
     Baca
     Baird
     Baldwin
     Becerra
     Berkley
     Berman
     Berry
     Bishop (GA)
     Bishop (NY)
     Blumenauer
     Boswell
     Boucher
     Boyd (FL)
     Boyda (KS)
     Brady (PA)
     Braley (IA)
     Brown, Corrine
     Butterfield
     Capps
     Capuano
     Cardoza
     Carnahan
     Castor
     Chandler
     Clarke
     Clay
     Cleaver
     Clyburn
     Cohen
     Conyers
     Cooper
     Costa
     Costello
     Courtney
     Cramer
     Crowley
     Cuellar
     Cummings
     Davis (AL)
     Davis (CA)
     Davis (IL)
     Davis, Lincoln
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Dicks
     Dingell
     Doggett
     Donnelly
     Doyle
     Edwards
     Ellison
     Ellsworth
     Emanuel
     Engel
     Eshoo
     Etheridge
     Farr
     Fattah
     Filner
     Frank (MA)
     Gillibrand
     Gonzalez
     Gordon
     Green, Al
     Green, Gene
     Grijalva
     Gutierrez
     Hall (NY)
     Hare
     Harman
     Hastings (FL)
     Herseth Sandlin
     Higgins
     Hinchey
     Hinojosa
     Hirono
     Hodes
     Holden
     Holt
     Honda
     Hooley
     Hoyer
     Inslee
     Israel
     Jackson (IL)
     Jackson-Lee (TX)
     Jefferson
     Johnson (GA)
     Jones (OH)
     Kagen
     Kanjorski
     Kaptur
     Kennedy
     Kildee
     Kilpatrick
     Kind
     Klein (FL)
     Kucinich
     Lampson
     Langevin
     Lantos
     Larsen (WA)
     Larson (CT)
     LaTourette
     Lee
     Levin
     Lewis (GA)
     Lipinski
     Loebsack
     Lofgren, Zoe
     Lowey
     Lynch
     Markey
     Matheson
     Matsui
     McCarthy (NY)
     McCollum (MN)
     McDermott
     McGovern
     McNerney
     McNulty
     Meek (FL)
     Meeks (NY)
     Melancon
     Michaud
     Miller (NC)
     Miller, George
     Mollohan
     Moore (KS)
     Moore (WI)
     Moran (VA)
     Murphy (CT)
     Murphy, Patrick
     Murtha
     Nadler
     Napolitano
     Neal (MA)
     Oberstar
     Obey
     Olver
     Ortiz
     Pallone
     Pascrell
     Pastor
     Paul
     Payne
     Perlmutter
     Peterson (MN)
     Pomeroy
     Price (NC)
     Rahall
     Rangel
     Reyes
     Richardson
     Rodriguez
     Ross
     Rothman
     Roybal-Allard
     Ruppersberger
     Rush
     Ryan (OH)
     Salazar
     Sanchez, Linda T.
     Sanchez, Loretta
     Sarbanes
     Schakowsky
     Schiff
     Schwartz
     Scott (GA)
     Scott (VA)
     Serrano
     Sestak
     Shea-Porter
     Sherman
     Shuler
     Sires
     Skelton
     Slaughter
     Smith (WA)
     Snyder
     Solis
     Space
     Spratt
     Stark
     Stupak
     Sutton
     Tanner
     Tauscher
     Taylor
     Thompson (CA)
     Thompson (MS)
     Tierney
     Towns
     Udall (CO)
     Udall (NM)
     Van Hollen
     Velazquez
     Visclosky
     Walz (MN)
     Wasserman Schultz
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Welch (VT)
     Wexler
     Woolsey
     Wu
     Wynn
     Yarmuth

                             NOT VOTING--14

     Baker
     Bean
     Boren
     Carson
     Cubin
     Jindal
     Johnson (IL)
     Johnson, E. B.
     Maloney (NY)
     Miller, Gary
     Peterson (PA)
     Reichert
     Rogers (KY)
     Wilson (OH)

                              {time}  1540

  So the motion to recommit was rejected.
  The result of the vote was announced as above recorded.
  (By unanimous consent, Mr. Costello was allowed to speak out of 
order.)


    Moment of Silence in Memory of the Late Honorable George Edward 
                 Sangmeister, Former Member of Congress

  Mr. COSTELLO. Madam Speaker, I regret to inform our Members that our 
former Member from Illinois, George Sangmeister, has died.
  Congressman Sangmeister served the people of Illinois in the 11th and 
4th Congressional Districts from 1989 to 1995, when he retired. George 
was a wonderful person and served with honor and distinction in this 
body.
  Madam Speaker, I yield to my friend from Illinois (Mr. Weller).
  Mr. WELLER of Illinois. Madam Speaker, I want to thank my friend, 
Jerry Costello, for yielding and join in honoring the life and service 
of someone who was a friend to many in this Chamber.
  My friend and predecessor, George Sangmeister, served in this body 
for 6 years, representing the district I currently represent, the 11th 
Congressional District, which was previously numbered as the 4th 
District of Illinois.
  George Sangmeister was born in Frankfurt, Illinois, 76 years ago. He 
attended Joliet Junior College before entering the military and serving 
in the Korean War. After returning to private life, he attended 
Elmhurst College and then earned a law degree from John Marshall Law 
School.
  George Sangmeister had a distinguished service career of 34 years of 
public service. He began his practice in private law before becoming a 
magistrate and justice of the peace for Will County in 1961; in 1964, 
became Will County State's Attorney.
  In 1972, George Sangmeister was elected as a Democrat to the Illinois 
House of Representatives; 1976, after 2 terms in the State house, he 
was elected to the State senate. George Sangmeister became a respected 
Democratic leader in the State legislature, and, in 1986, Democratic 
nominee for Governor, Adlai Stevenson, chose George Sangmeister as his 
running mate.
  In 1988, George Sangmeister was elected to Congress, served on the 
Veterans' Affairs Committee where he

[[Page 26995]]

helped to bring the veterans outpatient clinic to Joliet and worked 
tirelessly to expand health care benefits for veterans. After 3 terms 
in the House, he declined to seek reelection in 1994. He chose to 
return to private law practice.
  George Sangmeister is survived by his wife, Doris; a son, Kurt; a 
daughter, Kimberly; and 4 grandchildren.
  I join my friend Jerry Costello and members of the Illinois 
delegation in asking this House to honor and remember the late 
Congressman George Sangmeister for his 34 years of public service to 
Illinois and our Nation.
  Mr. COSTELLO. Madam Speaker, I ask our colleagues to join us in a 
moment of silence for our former colleague, George Sangmeister.


                Announcement By the Speaker Pro Tempore

  The SPEAKER pro tempore. Without objection, 5-minute voting will 
continue.
  There was no objection.
  The SPEAKER pro tempore. The question is on the passage of the bill.
  The question was taken; and the Speaker pro tempore announced that 
the noes appeared to have it.
  Mr. FRANK of Massachusetts. Madam Speaker, on that I demand the yeas 
and nays.
  The yeas and nays were ordered.
  The vote was taken by electronic device, and there were--yeas 264, 
nays 148, not voting 19, as follows:

                             [Roll No. 958]

                               YEAS--264

     Abercrombie
     Ackerman
     Allen
     Altmire
     Andrews
     Arcuri
     Baca
     Baird
     Baldwin
     Barrow
     Becerra
     Berkley
     Berman
     Berry
     Bishop (GA)
     Bishop (NY)
     Blumenauer
     Boswell
     Boucher
     Boyd (FL)
     Boyda (KS)
     Brady (PA)
     Braley (IA)
     Brown, Corrine
     Butterfield
     Capito
     Capps
     Capuano
     Cardoza
     Carnahan
     Carney
     Castle
     Castor
     Chandler
     Clarke
     Clay
     Cleaver
     Clyburn
     Cohen
     Conyers
     Costa
     Costello
     Courtney
     Cramer
     Crowley
     Cuellar
     Cummings
     Davis (AL)
     Davis (CA)
     Davis (IL)
     Davis, Lincoln
     Davis, Tom
     DeFazio
     DeGette
     Delahunt
     DeLauro
     Dent
     Diaz-Balart, L.
     Diaz-Balart, M.
     Dicks
     Dingell
     Doggett
     Donnelly
     Doyle
     Edwards
     Ellison
     Ellsworth
     Emanuel
     Emerson
     Engel
     English (PA)
     Eshoo
     Etheridge
     Farr
     Fattah
     Ferguson
     Filner
     Frank (MA)
     Frelinghuysen
     Gerlach
     Giffords
     Gilchrest
     Gillibrand
     Gonzalez
     Gordon
     Green, Al
     Green, Gene
     Grijalva
     Gutierrez
     Hall (NY)
     Hare
     Harman
     Hastings (FL)
     Hayes
     Herseth Sandlin
     Higgins
     Hill
     Hinchey
     Hinojosa
     Hirono
     Hodes
     Holden
     Holt
     Honda
     Hooley
     Hoyer
     Inslee
     Israel
     Jackson (IL)
     Jackson-Lee (TX)
     Jefferson
     Johnson (GA)
     Jones (OH)
     Kagen
     Kanjorski
     Kaptur
     Kennedy
     Kildee
     Kilpatrick
     Kind
     King (NY)
     Klein (FL)
     Kucinich
     Kuhl (NY)
     LaHood
     Lampson
     Langevin
     Lantos
     Larsen (WA)
     Larson (CT)
     LaTourette
     Lee
     Levin
     Lewis (GA)
     Lipinski
     LoBiondo
     Loebsack
     Lofgren, Zoe
     Lowey
     Lynch
     Mahoney (FL)
     Markey
     Marshall
     Matheson
     Matsui
     McCarthy (NY)
     McCollum (MN)
     McDermott
     McGovern
     McHugh
     McIntyre
     McNerney
     McNulty
     Meek (FL)
     Meeks (NY)
     Melancon
     Michaud
     Miller (MI)
     Miller (NC)
     Miller, George
     Mitchell
     Mollohan
     Moore (KS)
     Moore (WI)
     Moran (VA)
     Murphy (CT)
     Murphy, Patrick
     Murphy, Tim
     Murtha
     Nadler
     Napolitano
     Neal (MA)
     Oberstar
     Obey
     Olver
     Ortiz
     Pallone
     Pascrell
     Pastor
     Payne
     Perlmutter
     Peterson (MN)
     Pickering
     Platts
     Pomeroy
     Porter
     Price (NC)
     Rahall
     Ramstad
     Rangel
     Regula
     Renzi
     Reyes
     Richardson
     Rodriguez
     Ros-Lehtinen
     Ross
     Rothman
     Roybal-Allard
     Ruppersberger
     Rush
     Ryan (OH)
     Salazar
     Sanchez, Linda T.
     Sarbanes
     Saxton
     Schakowsky
     Schiff
     Schwartz
     Scott (GA)
     Scott (VA)
     Serrano
     Sestak
     Shays
     Shea-Porter
     Sherman
     Shimkus
     Shuler
     Simpson
     Sires
     Skelton
     Slaughter
     Smith (NJ)
     Smith (WA)
     Snyder
     Solis
     Space
     Spratt
     Stark
     Stupak
     Sutton
     Tanner
     Tauscher
     Taylor
     Terry
     Thompson (CA)
     Thompson (MS)
     Tierney
     Towns
     Turner
     Udall (CO)
     Udall (NM)
     Upton
     Van Hollen
     Velazquez
     Visclosky
     Walden (OR)
     Walz (MN)
     Wasserman Schultz
     Waters
     Watson
     Watt
     Waxman
     Weiner
     Welch (VT)
     Weller
     Wexler
     Whitfield
     Wilson (NM)
     Woolsey
     Wu
     Wynn
     Yarmuth
     Young (AK)

                               NAYS--148

     Aderholt
     Akin
     Alexander
     Bachmann
     Bachus
     Barrett (SC)
     Bartlett (MD)
     Barton (TX)
     Biggert
     Bilbray
     Bilirakis
     Bishop (UT)
     Blackburn
     Blunt
     Boehner
     Bonner
     Bono
     Boozman
     Boustany
     Brady (TX)
     Broun (GA)
     Brown (SC)
     Brown-Waite, Ginny
     Buchanan
     Burgess
     Burton (IN)
     Calvert
     Camp (MI)
     Campbell (CA)
     Cannon
     Cantor
     Carter
     Chabot
     Coble
     Cole (OK)
     Conaway
     Crenshaw
     Culberson
     Davis (KY)
     Davis, David
     Deal (GA)
     Doolittle
     Drake
     Dreier
     Duncan
     Ehlers
     Everett
     Fallin
     Feeney
     Flake
     Forbes
     Fortenberry
     Fossella
     Foxx
     Franks (AZ)
     Gallegly
     Garrett (NJ)
     Gingrey
     Gohmert
     Goode
     Goodlatte
     Granger
     Graves
     Hall (TX)
     Hastert
     Hastings (WA)
     Heller
     Hensarling
     Herger
     Hobson
     Hoekstra
     Hulshof
     Hunter
     Inglis (SC)
     Issa
     Johnson, Sam
     Jones (NC)
     Jordan
     Keller
     Kingston
     Kirk
     Kline (MN)
     Knollenberg
     Lamborn
     Latham
     Lewis (CA)
     Lewis (KY)
     Linder
     Lucas
     Lungren, Daniel E.
     Mack
     Manzullo
     Marchant
     McCarthy (CA)
     McCaul (TX)
     McCotter
     McCrery
     McHenry
     McKeon
     McMorris Rodgers
     Mica
     Miller (FL)
     Moran (KS)
     Musgrave
     Myrick
     Neugebauer
     Nunes
     Paul
     Pearce
     Pence
     Petri
     Pitts
     Poe
     Price (GA)
     Pryce (OH)
     Putnam
     Radanovich
     Rehberg
     Reynolds
     Rogers (AL)
     Rogers (MI)
     Rohrabacher
     Roskam
     Royce
     Ryan (WI)
     Sali
     Schmidt
     Sensenbrenner
     Sessions
     Shadegg
     Smith (NE)
     Smith (TX)
     Souder
     Stearns
     Sullivan
     Tancredo
     Thornberry
     Tiahrt
     Tiberi
     Walberg
     Walsh (NY)
     Wamp
     Weldon (FL)
     Westmoreland
     Wicker
     Wilson (SC)
     Wolf
     Young (FL)

                             NOT VOTING--19

     Baker
     Bean
     Boren
     Buyer
     Carson
     Cooper
     Cubin
     Jindal
     Johnson (IL)
     Johnson, E. B.
     King (IA)
     Maloney (NY)
     Miller, Gary
     Peterson (PA)
     Reichert
     Rogers (KY)
     Sanchez, Loretta
     Shuster
     Wilson (OH)

                              {time}  1552

  So the bill was passed.
  The result of the vote was announced as above recorded.
  A motion to reconsider was laid on the table.

                          ____________________