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

March 5, 2003

Mr. SANDERS (for himself, Mr. SIMMONS, Ms. LEE, Mr. SHAYS, Ms. WATERS, Mr. GREENWOOD, Mr. HOYER, Mr. MCHUGH, Mr. ISRAEL, Mr. QUINN, Mr. SMITH of Washington, Mr. CLAY, Mr. WEINER, Mr. GRIJALVA, Mr. DAVIS of Alabama, Mr. LYNCH, Mrs. JONES of Ohio, Mr. OBERSTAR, Ms. WOOLSEY, Mr. CROWLEY, Mr. INSLEE, Ms. BALDWIN, Mrs. CHRISTENSEN, Mr. MORAN of Virginia, Mr. WYNN, Mrs. MALONEY, Mr. OWENS, Mr. KLECZKA, Mr. BISHOP of New York, Mr. HOLT, Mr. DAVIS of Illinois, Mr. GEORGE MILLER of California, Ms. SCHAKOWSKY, Mr. EVANS, Mr. ACEVEDO-VILA, Ms. KAPTUR, Mr. FORD, Ms. DELAURO, Mr. HINCHEY, Mr. HONDA, Mr. GUTIERREZ, Ms. CARSON of Indiana, Mr. HOLDEN, Mr. CASE, Mr. DOYLE, Mr. WEXLER, Mr. GORDON, Mr. PAYNE, Mr. ABERCROMBIE, Mr. MCGOVERN, Mr. TIERNEY, Mr. MATSUI, Mr. CONYERS, Mr. KILDEE, Mr. MCNULTY, Mr. FARR, Ms. CORRINE BROWN of Florida, Mr. LANGEVIN, Mr. HALL, Mr. OLVER, Ms. KILPATRICK, Mr. NADLER, Mr. ENGEL, Mr. CAPUANO, Ms. VELAZQUEZ, Mr. BLUMENAUER, Mr. SERRANO, Mr. TOWNS, Mr. STRICKLAND, Ms. LOFGREN, Mr. PALLONE, Mr. MOORE, Mr. RANGEL, Mr. DELAHUNT, Mr. CUMMINGS, Mr. COOPER, Mr. HINOJOSA, Mr. KIND, Ms. MILLENDER-MCDONALD, Mr. BOUCHER, Mrs. DAVIS of California, Mr. MCDERMOTT, Mr. MENENDEZ, Mr. DOGGETT, Ms. JACKSON-LEE of Texas, Mr. RUSH, Ms. WATSON, Mr. LARSEN of Washington, Ms. SLAUGHTER, Mr. DEFAZIO, Mr. SNYDER, Mr. JEFFERSON, Mr. LEWIS of Georgia, Mr. FATTAH, Mr. FROST, Mr. BROWN of Ohio, Mrs. MCCARTHY of New York, Mr. SPRATT, Mr. BACA, Mr. BECERRA, Mr. MEEKS of New York, Ms. MCCARTHY of Missouri, Mr. REYES, Mr. ALLEN, Mr. SCHIFF, Mr. RODRIGUEZ, Mr. EMANUEL, Ms. HARMAN, Mr. LARSON of Connecticut, Ms. LINDA T. SANCHEZ of California, Mr. DINGELL, Ms. NORTON, Mr. LANTOS, Mr. MICHAUD, Ms. ESHOO, Mrs. LOWEY, Ms. SOLIS, Ms. DEGETTE, Mr. KUCINICH, Mr. PASCRELL, Mr. UDALL of New Mexico, Ms. MCCOLLUM, Mr. BRADY of Pennsylvania, Mr. BELL, Mr. ANDREWS, Mr. KENNEDY of Rhode Island, Mr. HOEFFEL, Mr. BALLANCE, Mr. PRICE of North Carolina, Mr. LAMPSON, Mr. WAXMAN, Mr. FILNER, Mrs. CAPPS, Mr. ORTIZ, Mr. STARK, Mr. COSTELLO, Mr. WATT, Mr. THOMPSON of California, Mr. MEEK of Florida, Ms. BORDALLO, Ms. EDDIE BERNICE JOHNSON of Texas, Mr. THOMPSON of Mississippi, Mr. JACKSON of Illinois, Mr. CLYBURN, Mr. GREEN of Texas, Mr. MEEHAN, Mr. RYAN of Ohio, Mr. VAN HOLLEN, Ms. ROYBAL-ALLARD, Mr. FALEOMAVAEGA, Mr. HILL, Mr. MCINTYRE, Mr. DAVIS of Tennessee, Mr. RAHALL, Mr. ROSS, Mr. MILLER of North Carolina, Mr. BOSWELL, Mr. UDALL of Colorado, Mr. DICKS, Mr. BISHOP of Georgia, Mr. ROTHMAN, and Mr. BERMAN) introduced the following bill; which was referred to the Committee on Financial Services

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

Be it enacted by the Senate and House of Representatives of the United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

This Act may be cited as the `National Affordable Housing Trust Fund Act of 2003'.

SEC. 2. NATIONAL AFFORDABLE HOUSING TRUST FUND.

(a) IN GENERAL- Title II of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12721 et seq.) is amended by adding at the end the following new subtitle:

`Subtitle G--National Affordable Housing Trust Fund

`SEC. 291. PURPOSES.

`The purposes of this subtitle are--

`(1) to fill the growing gap in the national ability to build affordable housing by using profits generated by Federal housing programs to fund additional housing activities, without supplanting existing housing appropriations;

`(2) to enable rental housing to be built, for families with the greatest economic need, in mixed-income settings and in areas with the greatest economic opportunities;

`(3) to promote homeownership for low-income families; and

`(4) to produce, rehabilitate, and preserve at least 1,500,000 affordable dwelling units over the next decade.

`SEC. 292. TRUST FUND.

`(a) ESTABLISHMENT- There is established in the Treasury of the United States a trust fund to be known as the National Affordable Housing Trust Fund, which shall be available as provided in this subtitle for assisting the development, rehabilitation, and preservation of affordable housing.

`(b) DEPOSITS TO TRUST FUND- For fiscal year 2004 and each fiscal year thereafter, there shall be appropriated to the Trust Fund an amount equal to the sum of--

`(1) the amount by which the balance in the Mutual Mortgage Insurance Fund established under section 202(a) of the National Housing Act (12 U.S.C. 1708(a)), at the conclusion of the preceding fiscal year, exceeds the amount necessary for such Fund to maintain the capital ratio required under section 205(f) of such Act (12 U.S.C. 1711(f)); and

`(2) the amount by which any amounts collected or received by the Government National Mortgage Association during the preceding fiscal year exceeds the amount necessary to pay the administrative costs and expenses necessary to ensure the safety and soundness of the Government National Mortgage Association, as determined by the Secretary.

`(c) EXPENDITURES FROM TRUST FUND- For fiscal year 2004 and each fiscal year thereafter, amounts appropriated to the Trust Fund for each such fiscal year

shall be available to the Secretary of Housing and Urban Development for providing assistance under this subtitle.

`SEC. 293. ALLOCATIONS FOR STATES AND PARTICIPATING LOCAL JURISDICTIONS.

`(a) IN GENERAL- The Secretary shall use the total amount made available under section 292(c) to the Secretary from the Trust Fund for such fiscal year to provide assistance under this subtitle for the States and participating local jurisdictions. Of such total amount, the Secretary shall allocate 40 percent for States for use under section 294 and 60 percent for participating local jurisdictions for use under section 294.

`(b) CONSORTIA AS PARTICIPATING JURISDICTIONS- A consortium of geographically contiguous units of general local government shall be deemed to be a participating local jurisdiction for the purposes of this section if the Secretary determines that the consortium has sufficient authority and administrative capability to carry out the purposes of this subtitle on behalf of its member jurisdictions.

`SEC. 294. ASSISTANCE FROM TRUST FUND.

`(a) AFFORDABLE HOUSING NEEDS FORMULA- The Secretary shall establish a formula to allocate assistance under this subtitle among eligible recipients based on the relative need of the eligible recipient, among other eligible recipients that are States or participating local jurisdictions, as appropriate, to increase the supply of decent quality affordable housing. The formula shall be based upon a comparison of the following factors for each eligible recipient:

`(1) The percentage of families in the jurisdiction of the eligible recipient that live in substandard housing.

`(2) The percentage of families in the jurisdiction of the eligible recipient that pay more than 50 percent of their annual income for housing costs.

`(3) The percentage of persons in the jurisdiction of the eligible recipient having an income at or below the poverty line.

`(4) The cost of developing or carrying out rehabilitation of housing in the jurisdiction of the eligible recipient.

`(5) The percentage of the population of the eligible recipient that resides in counties having extremely low vacancy rates.

`(6) The percentage of housing stock in the jurisdiction of the eligible recipient that is extremely old housing.

`(7) Any other factors that the Secretary determines to be appropriate.

`(b) FORMULA AMOUNT-

`(1) IN GENERAL- For fiscal year 2004 and each fiscal year thereafter, the Secretary shall determine the formula amount under this subsection for each eligible recipient.

`(2) STATES- The formula amount for each State shall be the amount determined for such State by applying the formula under subsection (a) to the total amount allocated under section 293(a) for all States for the fiscal year.

`(3) PARTICIPATING LOCAL JURISDICTIONS- The formula amount for each participating local jurisdiction shall be the amount determined for such participating local jurisdiction by applying the formula under subsection (a) to the total amount allocated under section 293(a) for all participating local jurisdictions for the fiscal year.

`(c) ALLOCATION AMOUNT- The allocation under this subsection for a State or local participating jurisdiction for a fiscal year shall be determined as follows:

`(1) STATES- In the case of a State:

`(A) MINIMUM AMOUNT- If the formula amount determined under subsection (b) for the State for the fiscal year is less than 1 percent of the total amount made available under section 292(c) for such fiscal year, the allocation for the State shall be 1 percent of such amount.

`(B) FORMULA AMOUNT- If the formula amount determined under subsection (b) for the State for the fiscal year is 1 percent or more of the total amount made available under section 292(c) for such fiscal year, the allocation for the State shall be the formula amount for the State, except that the Secretary shall reduce such formula amounts for all States whose allocations are determined under this paragraph on a pro rata basis by the amount necessary to account for any increases from the formula amount for allocations made under paragraph (1) of this subsection so that the total of the allocations for all States is equal to the amount of the allocation under section 293(a) for States.

`(2) PARTICIPATING LOCAL JURISDICTIONS- The allocation for each eligible participating local jurisdiction shall be the formula amount for the eligible jurisdiction determined under subsection (b).

`(d) GRANT AWARDS- For fiscal year 2004 and each fiscal year thereafter, using the amounts made available to the Secretary from the Trust Fund for such fiscal year under section 292(c), the Secretary shall make a grant to each eligible recipient in the lesser of the following amounts:

`(1) FULL ALLOCATION- The amount of the allocation under subsection (c) for the eligible recipient.

`(2) 4 TIMES MATCHING CONTRIBUTION- Except as provided in subsection (e)(4), the amount that is equal to 4 times the amount of funds provided by the eligible recipient from non-Federal sources for use only as provided in subsection (e)(2).

`(e) MATCHING CONTRIBUTION-

`(1) ELIGIBLE AMOUNTS- For purposes of subsection (d)(2), only the following amounts shall be considered amounts from non-Federal sources:

`(A) LOW-INCOME HOUSING TAX CREDITS- 50 percent of funds allocable to tax credits allocated under section 42 of the Internal Revenue Code of 1986.

`(B) MORTGAGE BOND REVENUE- 50 percent of revenue from mortgage revenue bonds issued under section 143 of such Code.

`(C) TAX EXEMPT BONDS PROCEEDS- 50 percent of proceeds from the sale of tax exempt bonds.

`(D) CDBG PROGRAM AMOUNTS- 50 percent of grant amounts received under the community development block grant program under title I of the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.).

`(E) HOME PROGRAM AMOUNTS- 50 percent of funds received under the HOME investment partnerships program under subtitles A through F of this title.

`(F) PROJECT-BASED VOUCHER ASSISTANCE- 50 percent of funds used each year pursuant to paragraph (13) of section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(13)) for the duration of the applicable housing assistance payments contract.

`(G) TEMPORARY ASSISTANCE FOR NEEDY FAMILIES- Federal, State, and local funds provided under part A of title IV of the Social Security Act (42 U.S.C. 601 et seq.).

`(H) RURAL HOUSING ASSISTANCE- 50 percent of amounts received under title V of the Housing Act of 1949 (42 U.S.C. 1471 et seq.).

`(I) GENERAL STATE REVENUE- Any other State or unit of general local government revenue that is not derived from Federal sources, including any State tax revenue.

`(2) USE OF MATCHING AMOUNTS- Use of amounts as provided in this paragraph shall be used only for--

`(A) eligible activities relating to affordable housing; or

`(B) eligible activities relating to a project not less than 50 percent of the dwelling units of which qualify as affordable housing.

`(3) CERTIFICATION- The Secretary shall require eligible recipients to certify to the Secretary the amount of funds from non-Federal sources provided for purposes of subsection (d)(2).

`(4) REDUCTION OF CONTRIBUTION REQUIREMENT-

`(A) 50 PERCENT REDUCTION FOR RECIPIENTS IN FISCAL DISTRESS- If an eligible recipient certifies to the Secretary that it is in fiscal distress, the eligible recipient shall be treated, for purposes of subsection (d)(2), as having provided from non-Federal sources for use only as provided in subsection (e)(2) an amount equal to twice the amount of such funds that the recipient certifies to the Secretary pursuant to paragraph (3) of this subsection.

`(B) INAPPLICABILITY OF MATCHING REQUIREMENT FOR RECIPIENTS IN SEVERE FISCAL DISTRESS- If an eligible recipient certifies to the Secretary that it is in severe fiscal distress, subsection (d)(2) shall not apply to such eligible recipient.

`(g) GRANTS FOR INELIGIBLE RECIPIENTS AND RECIPIENTS WITH INSUFFICIENT MATCHING CONTRIBUTIONS-

`(1) AVAILABLE AMOUNTS- For a fiscal year, the following amounts shall be available for grants under this subsection:

`(A) ALLOCATION FOR INELIGIBLE RECIPIENT- With respect to each ineligible recipient, the amount of the allocation for the State or participating local jurisdiction for such fiscal year determined under subsection (c).

`(B) UNMATCHED PORTION OF ALLOCATION- With respect to any eligible recipient for which the amount of the grant assistance for such fiscal year is determined under subsection (d)(2), the amount by which the allocation determined under subsection (c) for the eligible recipient for the fiscal year exceeds the grant assistance for the eligible recipient for the fiscal year.

`(2) NOTICE- For each fiscal year, not later than 60 days after the date that the Secretary determines that the amounts described in paragraph (1) shall be available for grants under this subsection, the Secretary shall cause to be published in the Federal Register a notice that such amounts shall be so available.

`(3) APPLICATIONS- The Secretary shall provide for nonprofit and public entities (and consortia thereof, which may include units of local government working together on a regional basis) to submit applications, during the 9-month period beginning upon publication of a notice of funding availability under paragraph (2), for a grant of all or a portion of the amounts referred to in paragraph (1). Such an application shall include--

`(A) a certification that the applicant will provide supplemental amounts in accordance with paragraph (5)(B)(i); and

`(B) an allocation plan described in paragraph (5)(B)(ii).

`(4) SELECTION CRITERIA- The Secretary shall, by regulation, establish criteria for selecting applicants that meet the requirements of paragraph (3) for funding under this subsection. Such criteria shall give priority to applications that provide that grant amounts under this subsection will be used for eligible activities relating to affordable housing that is located in the State for which such grant funds were originally allocated under subsection (c).

`(5) AWARD AND USE OF GRANT ASSISTANCE-

`(A) AWARD OF GRANTS- Subject only to the absence of applications meeting the requirements of paragraph (3), upon the expiration of the period referred to in such paragraph, the Secretary shall select an applicant or applicants under this subsection to receive the amounts available under paragraph (1) and shall make a grant or grants to such applicant or applicants. The selection shall be based upon the criteria established under paragraph (4).

`(B) GRANT REQUIREMENTS- Grant assistance under this subsection shall be subject to the following requirements:

`(i) MATCHING AMOUNTS- The grantee shall supplement any grant amounts received under this subsection with an amount equal to 25 percent of such grant amounts.

`(ii) USE- Grant amounts received under this subsection shall be used in accordance with an allocation plan that meets the requirements of section 295(e) and provides that any assistance provided to the applicant under this subsection, and any supplemental amounts provided by the applicant pursuant to clause (i), shall be used only to carry out eligible activities.

`SEC. 295. USE OF ASSISTANCE BY RECIPIENTS.

`(a) DISTRIBUTION TO ELIGIBLE ENTITIES- Each eligible recipient that receives a grant under this subtitle shall distribute the grant amounts (excluding any amounts used under subsection (b)) to eligible entities for use by such entities only for eligible activities in the jurisdiction of the eligible recipient, as follows:

`(1) USE FOR RENTAL HOUSING FOR EXTREMELY LOW-INCOME FAMILIES- Not less than 45 percent of such amounts shall be distributed for use only for eligible activities relating to affordable housing in the jurisdiction of the eligible recipient that is available for rental by families (as such term is defined in section 3(b) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b))) whose incomes do not exceed 30 percent of the greater of--

`(A) the median family income for the area in which the housing is located, as determined by the Secretary with adjustments for smaller and larger families; and

`(B) the median family income for the State in which the housing is located, as determined by the Secretary with adjustments for smaller and larger families.

Such rental housing shall include limited equity cooperative housing, as such term is defined in section 143(k) of the Internal Revenue Code of 1986 (26 U.S.C 143(k)).

`(2) USE FOR RENTAL HOUSING FOR MINIMUM WAGE-INCOME FAMILIES- Not less than 30 percent of such amounts shall be distributed for use only for eligible activities relating to affordable housing in the jurisdiction of the eligible recipient that is available for rental by families (as such term is defined in section 3(b) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b))) whose incomes do not exceed the amount earned by one individual who is employed on a full-time basis in a position that pays the greater of--

`(A) the Federal minimum wage under section 6(a)(1) of the Fair Labor Standards Act of 1938 (29 U.S.C. 206(a)(1)); and

`(B) the minimum wage under the laws of the State in which the housing is located.

Such rental housing shall include limited equity cooperative housing, as such term is defined in section 143(k) of the Internal Revenue Code of 1986 (26 U.S.C 143(k)).

`(3) USE FOR RENTAL HOUSING OR HOMEOWNERSHIP ASSISTANCE FOR LOW-INCOME FAMILIES- Not more than 25 percent of such amounts shall be distributed for use only for eligible activities relating to affordable housing in the jurisdiction of the eligible recipient that is available for rental by families (as such term is defined in section 3(b) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b))) whose incomes do not exceed 80 percent of the greater of--

`(A) the median family income for the area in which the housing is located, as determined by the Secretary with adjustments for smaller and larger families, and

`(B) the median family income for the State in which the housing is located, as determined by the Secretary with adjustments for smaller and larger families,

or for homeownership assistance for such families in the jurisdiction of the eligible recipient. Such rental housing and homes for homeownership shall include housing of a cooperative housing corporation, as such term is defined in section 216(b) of the Internal Revenue Code of 1986 (26 U.S.C 216(b)).

`(b) OPERATING ASSISTANCE FOR NONPROFIT HOUSING DEVELOPMENT ORGANIZATIONS- An eligible entity that receives a grant under this subtitle may use not more than 5 percent of such grant amounts to provide assistance to nonprofit organizations involved in the development, rehabilitation, or preservation of affordable rental housing for payment of operating costs of such organizations. Such nonprofit organizations shall include community housing development organizations (as such term is defined in section 104 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12704)), community development financial institutions (as such term is defined in section 103 of the Community Development Banking and Financial Institutions Act of 1994 (12 U.S.C. 4702)), community development corporations (as such term is defined in section 31131 of the National Community Economic Partnership Act of 1994 (42 U.S.C. 13851)), and community-based development organizations.

`(c) COST LIMITS- The Secretary shall establish limitations on the amount of grant amounts that may be used, on a per unit basis, for eligible activities. Such limitations shall be the same as the per unit cost limits established pursuant to section 212(e) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12742(e)), as adjusted annually, and established by number of bedrooms, market area, and eligible activity.

`(d) ELIGIBLE RECIPIENTS- With respect to a fiscal year, a State or participating local jurisdiction shall be an eligible recipient for purposes of this subtitle for such fiscal year only if the State or participating local jurisdiction has established an allocation plan that has been submitted to the Secretary and reviewed and approved by the Secretary as in accordance with subsection (e). The Secretary may disapprove an allocation plan only if the plan fails to comply with requirements set forth in this section.

`(e) ALLOCATION PLAN-

`(1) IN GENERAL- An allocation plan in accordance with this subsection is a plan, established by a State or participating local jurisdiction, as appropriate, for a fiscal year, for the distribution of grant amounts provided to the State or participating local jurisdiction under this subtitle for such fiscal year that is based on priority housing needs, as determined by the State or participating local jurisdiction.

`(2) ESTABLISHMENT- In establishing an allocation plan, the State or participating local jurisdiction shall notify the public of the establishment of the plan, provide an opportunity for public comments regarding the plan, consider any public comments received, and make the completed plan available to the public.

`(3) CONTENTS- An allocation plan of a State or participating local jurisdiction shall include the following information:

`(A) APPLICATION REQUIREMENTS FOR ELIGIBLE ENTITIES AND SUBRECIPIENTS- The allocation plan shall set forth the requirements for eligible entities and eligible subrecipients to apply to receive assistance from grant amounts under this subtitle, including a requirement that each such application include--

`(i) a description of the eligible activities to be conducted using such assistance; and

`(ii) a certification by the applicant that any housing units assisted with such assistance will comply with the requirements under--

`(I) section 296(1)(A) (relating to rents charged);

`(II) section 296(1)(B) (relating to tenant rent contribution);

`(III) section 296(1)(C) (relating to availability of units for voucher holders);

`(IV) section 296(1)(D) (relating to use as affordable housing for 50 years);

`(V) section 296(1)(E) (relating to mixed income); and

`(VI) section 808(d) of the Fair Housing Act (relating to the obligation to affirmatively further fair housing).

`(B) SELECTION AND PREFERENCE CRITERIA FOR ELIGIBLE ENTITIES AND SUBRECIPIENTS- The allocation plan shall set forth the factors for consideration in selecting among applicants that meet the application requirements set forth pursuant to subparagraph (A), which shall give preference to applicants based on--

`(i) the amount of assistance leveraged by the applicant from private and other non-Federal sources for carrying out the eligible activities to be funded with assistance from grant amounts under this subtitle, including assistance made available under section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f) that is devoted to the project that contains the affordable housing to be assisted with such assistance;

`(ii) the extent of local assistance that will be provided in carrying out the eligible activities, including--

`(I) financial assistance;

`(II) the extent to which the applicant has worked to address issues of siting and exclusionary zoning or other policies that are barriers to affordable housing with the unit of general local government in which the housing to be assisted with such assistance will be located; and

`(III) the extent to which the applicant has worked with the unit of general local government to reduce the barriers to affordable housing;

`(iii) the degree to which the project in which the affordable housing will be located will have residents of various incomes;

`(iv) the extent of employment and other economic opportunities for low-income families in the area in which the housing will be located;

`(v) the extent to which the applicant demonstrates the ability to maintain dwelling units as affordable housing through the use of assistance made available under this subtitle, assistance leveraged from non-Federal sources, assistance made available under section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f), State or local assistance, programs to increase tenant income, cross-subsidization, and any other resources;

`(vi) the extent to which the applicant demonstrates that the county in which the housing is to be located is experiencing an extremely low vacancy rate;

`(vii) the extent to which the percentage of the housing located in such county that is extremely old housing exceeds 35 percent;

`(viii) the extent to which the housing assisted with the grant amounts will be accessible to persons with disabilities;

`(ix) the extent to which the applicant demonstrates that the affordable housing assisted with the grant amounts will be located in proximity to public transportation, job opportunities, child care, and community revitalization projects; and

`(x) the extent to which the applicant has provided that assistance from grant amounts made available under this subtitle will be used for eligible activities relating to housing located in census tracts in

which the number of families having incomes less than the poverty line is less than 20 percent.

`(4) CONSOLIDATED PLAN- The Secretary shall provide that a State or local participating jurisdiction may comply with the requirements under this subsection for submission of an allocation plan through the inclusion of any appropriate information in a single consolidated submission used for purposes of applying for other community planning and development and housing assistance programs administered by the Secretary.

`(f) FORMS OF ASSISTANCE-

`(1) IN GENERAL- Assistance may be distributed pursuant to this section in the form of capital grants, noninterest bearing or low-interest loans or advances, deferred payment loans, guarantees, and

any other forms of assistance approved by the Secretary.

`(2) REPAYMENTS- If an eligible recipient awards assistance under this section in the form of a loan or other mechanism by which funds are later repaid to the eligible recipient, any repayments received by the eligible recipient shall be distributed by the eligible recipient in accordance with the allocation plan under subsection (e) for the eligible recipient for the fiscal year in which such repayments are made.

`(g) COORDINATION WITH OTHER ASSISTANCE- In distributing assistance pursuant to this section, each eligible recipient shall, to the maximum extent practicable, coordinate such distribution with the provision of other Federal, State, and local housing assistance, including--

`(1) in the case of any State, housing credit dollar amounts allocated by the State under section 42(h) of the Internal Revenue Code of 1986;

`(2) assistance made available under the HOME Investment Partnerships Act (42 U.S.C. 12721 et seq.) or the community development block grant program under title I of the Housing and Community Development Act of 1974 (42 U.S.C. 5301 et seq.);

`(3) private activity bonds;

`(4) assistance made available under section 9 of the United States Housing Act of 1937 (42 U.S.C. 1437g);

`(5) assistance made available under section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o));

`(6) assistance made available under title V of the Housing Act of 1949 (42 U.S.C. 1471 et seq.); and

`(7) any other housing assistance programs.

`(h) EFFECT OF ASSISTANCE UNDER PROGRAM- Notwithstanding any other provision of law, the provision of assistance under this subtitle for a project shall not reduce the amount of assistance for which such project is otherwise eligible under section 42(h) of the Internal Revenue Code of 1986 (26 U.S.C. 42(h)) or subtitles A through F of this title, if the project does not exceed the cost limits established pursuant to subsection (c) of this section.

`(i) ADMINISTRATION OF PROGRAM BY SUBRECIPIENT- At the discretion of the eligible recipient, an eligible recipient may select an eligible subrecipient to carry out all or a portion of the recipient's responsibilities under this subtitle, in accordance with this section.

`(j) LABOR STANDARDS- Each eligible recipient receiving grant amounts under this subtitle shall ensure that contracts for eligible activities assisted with such amounts comply with the same requirements under section 286 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12836) that are applicable to contracts for construction of affordable housing assisted under such Act.

`(k) FAILURE TO COMPLY- If the Secretary finds after reasonable notice and opportunity for hearing that a State or participating local jurisdiction has failed to comply substantially with any provision of this subtitle and until the Secretary is satisfied that there is no longer any such failure to comply, the Secretary shall have the authority to discontinue assistance under this subtitle to the State or participating local jurisdiction.

`SEC. 296. DEFINITIONS.

`For purposes of this subtitle, the following definitions shall apply:

`(1) AFFORDABLE HOUSING- The term `affordable housing' means a rental dwelling unit that is subject to legally binding commitments that ensure that the dwelling unit meets all of the following requirements:

`(A) RENTS- The dwelling unit bears a rent not greater than the lesser of--

`(i) the existing fair market rental established by the Secretary under section 8(c) of the United States Housing Act of 1937 (42 U.S.C. 1437f(c)) for a dwelling unit of the same size in the same market

area, or the applicable payment standard for assistance under section 8(o) of such Act, if higher; and

`(ii) a rent that does not exceed 30 percent of the adjusted income of a family whose income equals 65 percent of the median income for the area, as determined by the Secretary, with adjustment for number of bedrooms in the unit, except that the Secretary may establish income ceilings higher or lower than 65 percent of the median for the area on the basis of the findings of the Secretary that such variations are necessary because of prevailing levels of construction costs or fair market rents, or unusually high or low family incomes.

`(B) TENANT RENT CONTRIBUTION- The contribution toward rent by the family residing in the dwelling unit will not exceed 30 percent of the adjusted income of such family.

`(C) AVAILABILITY OF UNITS FOR VOUCHER HOLDERS- The dwelling unit--

`(i) is located in a project within which a percentage of units are made available only for occupancy by families assisted under the voucher program under section 8(o) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)) (including project-based assistance under section 8(o)(13)) on the same basis as other families eligible for occupancy of the project (except that only the voucher holder's expected share of rent shall be considered), which percentage shall not be less than the percentage of the total cost of developing, rehabilitating, or preserving the project that is funded with assistance under this subtitle; and

`(ii) is one of the units that is subject to such occupancy requirements.

`(D) NON-DISCRIMINATION AGAINST VOUCHER HOLDERS- The dwelling unit is located in a project in which all dwelling units are subject to enforceable restrictions that provide that a unit may not be refused for leasing to a holder of a voucher of eligibility under section 8 of the United States Housing Act of 1937 (42 U.S.C. 1437f) because of the status of the prospective tenant as a holder of such voucher.

`(E) MIXED INCOME-

`(i) IN GENERAL- The dwelling unit is located in a project in which not more than 50 percent of the rental units in the project that receive assistance under this subtitle and are not previously occupied may be rented initially to families with incomes described in section 295(a)(1), as determined at a reasonable time before occupancy.

`(ii) EXCEPTIONS- Clause (i) shall not apply in the case of a project having not more than 25 dwelling units that is--

`(I) located in a census tract in which the number of families having incomes less than the poverty line is less than 20 percent;

`(II) located in a rural area, as such term is defined in section 520 of the Housing Act of 1949 (42 U.S.C. 1490); or

`(III) specifically made available only for households comprised of elderly families or disabled families.

`(F) DURATION OF USE- The dwelling unit will continue to be subject to the requirements under this paragraph for not less than 50 years.

`(2) ELIGIBLE ACTIVITIES- The term `eligible activities' means activities relating to providing affordable housing, including--

`(A) the construction of new housing;

`(B) the acquisition of real property;

`(C) site preparation and improvement, including demolition;

`(D) rehabilitation of existing housing;

`(E) the provision of project-based rental assistance for not more than 12 months for a dwelling unit assisted with grant amounts under this subtitle; and

`(F) providing incentives to maintain existing housing as affordable housing and to establish or extend any low-income affordability restrictions for such housing, including covering capital expenditures and operating costs.

`(3) ELIGIBLE ENTITY- The term `eligible entity' includes any public or private nonprofit or for-profit entity, unit of general local government, regional planning entity, and any other entity engaged

in the development, rehabilitation, or preservation of affordable housing, as determined by the Secretary.

`(4) ELIGIBLE PARTICIPATING LOCAL JURISDICTION- The term `eligible participating local jurisdiction' means a participating local jurisdiction that complies with the requirements under section 295(d).

`(5) ELIGIBLE RECIPIENT- The term `eligible recipient' means an eligible State or eligible participating local jurisdiction.

`(6) ELIGIBLE STATE- The term `eligible State' means a State that complies with the requirements under section 295(d).

`(7) ELIGIBLE SUBRECIPIENT- The term `eligible subrecipient' means a public agency or a nonprofit organization, including a community development corporation, a community development financial institution, a State or local housing trust fund, and any other intermediary selected by a State or participating local jurisdiction to administer all or a portion of the State's or participating local jurisdiction's responsibilities under this subtitle. The term does not include any public agency or nonprofit organization that receives money from the Trust Fund solely as a developer or owner of housing.

`(8) EXTREMELY LOW VACANCY RATE- The term `extremely low vacancy rate' means a housing or rental vacancy rate of 2 percent or less.

`(9) EXTREMELY OLD HOUSING- The term `extremely old housing' means housing that is 45 years old or older.

`(10) FISCAL DISTRESS; SEVERE FISCAL DISTRESS- The terms `fiscal distress' and `severe fiscal distress' have the meanings given such terms in section 220(d).

`(11) FULL-TIME BASIS- The term `full-time basis' means, with respect to employment, on a 40-hour per week, 52-week per year basis.

`(12) INELIGIBLE RECIPIENT- The term `ineligible recipient' means, with respect to a fiscal year, a State or participating local jurisdiction that has not submitted to the Secretary an allocation plan meeting the requirements of section 295(e).

`(13) PARTICIPATING LOCAL JURISDICTION- The term `participating local jurisdiction' means, with respect to a fiscal year, any unit of general local government (as such term is defined in section 104 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12704) that qualifies as a participating jurisdiction under the HOME Investment Partnerships Act for such fiscal year.

`(14) POVERTY LINE- The term `poverty line' has the meaning given such term in section 673(2) of the Omnibus Budget Reconciliation Act of 1981, including any revision required by such section.

`(15) SECRETARY- The term `Secretary' means the Secretary of Housing and Urban Development.

`(16) STATE- The term `State' has the meaning given such term in section 3(b) of the United States Housing Act of 1937 (42 U.S.C. 1437a(b)).

`(17) TRUST FUND- The term `Trust Fund' means the National Affordable Housing Trust Fund established under section 292.

`SEC. 297. AUTHORIZATION OF APPROPRIATIONS FOR SECTION 8 PROJECT-BASED ASSISTANCE.

`There are authorized to be appropriated, for project-based rental assistance under section 8(o)(13) of the United States Housing Act of 1937 (42 U.S.C. 1437f(o)(13)) provided in connection with dwelling units assisted under this subtitle, such sums as may be necessary for each fiscal year to provide such rental assistance on behalf of each family who occupied a dwelling unit assisted under this subtitle for which the rent that otherwise may be charged exceeds 30 percent of the family's adjusted income, as such term is defined in section 3 of the United States Housing Act of 1937 (42 U.S.C. 1437a).

`SEC. 298. INAPPLICABILITY OF HOME PROVISIONS.

`Except as specifically provided in this subtitle, no requirement under, or provision of, title I or subtitles A through F of this title shall apply to assistance provided under this subtitle.

`SEC. 299. REGULATIONS.

`Not later than 6 months after the date of enactment of the National Affordable Housing Trust Fund Act of 2003, the Secretary of Housing and Urban Development shall promulgate regulations to carry out this subtitle.'.

(b) CONFORMING AMENDMENT- Section 201 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12701 note) is amended by striking `This title' and inserting `Subtitles A through F of this title'.

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