[Congressional Bills 106th Congress]
[From the U.S. Government Publishing Office]
[S. 2997 Introduced in Senate (IS)]
106th CONGRESS
2d Session
S. 2997
To establish a National Housing Trust Fund in the Treasury of the
United States to provide for the development of decent, safe, and
affordable housing for low-income families.
_______________________________________________________________________
IN THE SENATE OF THE UNITED STATES
July 27, 2000
Mr. Kerry (for himself, Mr. Jeffords, Mr. Sarbanes, Mr. Leahy, Mr.
Bryan, Mr. Reed, Mr. L. Chafee, and Mr. Wellstone) introduced the
following bill; which was read twice and referred to the Committee on
Banking, Housing and Urban Affairs
_______________________________________________________________________
A BILL
To establish a National Housing Trust Fund in the Treasury of the
United States to provide for the development of decent, safe, and
affordable housing for low-income families.
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 2000''.
SEC. 2. PURPOSES.
The purposes of this Act are to--
(1) fill the growing gap in the national ability to build
affordable housing by using profits generated by Federal
housing programs to fund additional housing activities, and not
supplant existing housing appropriations; and
(2) enable rental housing to be built for those families
with the greatest need in areas with the greatest opportunities
in mixed-income settings and to promote homeownership for low-
income families.
SEC. 3. NATIONAL HOUSING TRUST FUND.
(a) Establishment of Trust Fund.--There is established in the
Treasury of the United States a trust fund to be known as the
``National Affordable Housing Trust Fund'' (referred to in this Act as
the ``Trust Fund'') for the purposes of promoting the development of
affordable housing.
(b) Deposits to the Trust Fund.--For fiscal year 2001 and each
fiscal year thereafter, there is appropriated to the Trust Fund an
amount equal to the sum of--
(1) any revenue generated by the Mutual Mortgage Insurance
Fund of the Federal Housing Administration in excess of the
amount necessary for the Mutual Mortgage Insurance Fund to
maintain a capital ratio of 3 percent for the preceding fiscal
year; and
(2) any revenue generated by the Government National
Mortgage Association in excess of the amount necessary to pay
the administrative costs and expenses necessary to ensure the
safety and soundness of the Government National Mortgage
Association for the preceding fiscal year, as determined by the
Secretary.
(c) Expenditures From the Trust Fund.--For fiscal year 2001 and
each fiscal year thereafter, amounts appropriated to the Trust Fund
shall be available to the Secretary of Housing and Urban Development
for use in accordance with section 4.
SEC. 4. ADMINISTRATION OF NATIONAL AFFORDABLE HOUSING TRUST FUND.
(a) Definitions.--In this section:
(1) Affordable housing.--The term ``affordable housing''
means housing for rental that bears rents not greater than the
lesser of--
(A) the existing fair market rent for comparable
units in the area, as established by the Secretary
under section 8 of the United States Housing Act of
1937 (42 U.S.C. 1437f); or
(B) a rent that does not exceed 30 percent of the
adjusted income of a family whose income equals 65
percent of the median income for the area, as
determined by the Secretary, with 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) Continued assistance rental subsidy program.--The term
``continued assistance rental subsidy program'' means a program
under which--
(A) project-based assistance is provided for not
more than 3 years to a family in an affordable housing
unit developed with assistance made available under
subsection (c) or (d) in a project that partners with a
public housing agency, which agency agrees to provide
the assisted family with a priority for the receipt of
a voucher under section 8(o) of the United States
Housing Act of 1937 (42 U.S.C. 1437f(o)) if the family
chooses to move after an initial year of occupancy and
the public housing agency agrees to refer eligible
voucher holders to the property when vacancies occur;
and
(B) after 3 years, subject to appropriations,
continued assistance is provided under section 8(o) of
the United States Housing Act of 1937 (42 U.S.C.
1437f(o)), notwithstanding any provision to the
contrary in that section, if administered to provide
families with the option of continued assistance with
tenant-based vouchers, if such a family chooses to move
after an initial year of occupancy and the public
housing agency agrees to refer eligible voucher holders
to the property when vacancies occur.
(3) Eligible activities.--The term ``eligible activities''
means activities relating to the development of affordable
housing, including--
(A) the construction of new housing;
(B) the acquisition of real property;
(C) site preparation and improvement, including
demolition;
(D) substantial rehabilitation of existing housing;
and
(E) rental subsidy for not more than 3 years under
a continued assistance rental subsidy program.
(4) Eligible entity.--The term ``eligible entity'' includes
any public or private nonprofit or for-profit entity, unit of
local government, regional planning entity, and any other
entity engaged in the development of affordable housing, as
determined by the Secretary.
(5) Eligible intermediary.--The term ``eligible
intermediary'' means--
(A) a nonprofit community development corporation;
(B) a community development financial institution
(as defined in section 103 of the Community Development
Banking and Financial Institutions Act of 1994 (12
U.S.C. 4702));
(C) a State or local trust fund;
(D) any entity eligible for assistance under
section 4 of the HUD Demonstration Act of 1993 (42
U.S.C. 9816 note);
(E) a national, regional, or statewide nonprofit
organization; and
(F) any other appropriate nonprofit entity, as
determined by the Secretary.
(6) Extremely low-income families.--The term ``extremely
low-income families'' means very low-income families (as
defined in section 3(b) of the United States Housing Act of
1937 (42 U.S.C. 1437a(b)) whose incomes do not exceed 30
percent of the median family income for the area, as determined
by the Secretary with adjustments for smaller and larger
families, except that the Secretary may establish income
ceilings higher or lower than 30 percent of the median for the
area on the basis of the Secretary's findings that such
variations are necessary because of unusually high or low
family incomes.
(7) Low-income families.--The term ``low-income families''
has the meaning given the term in section 3(b) of the United
States Housing Act of 1937 (42 U.S.C. 1437a(b)).
(8) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(9) State.--The term ``State'' has the meaning given the
term in section 3(b) of the United States Housing Act of 1937
(42 U.S.C. 1437a(b)).
(b) Allocation to States and Eligible Intermediaries.--For fiscal
year 2001 and each fiscal year thereafter, the total amount made
available to the Secretary from the Trust Fund under section 3(c) shall
be allocated by the Secretary as follows:
(1) 75 percent shall be used to award grants to States in
accordance with subsection (c).
(2) 25 percent shall be used to award grants to eligible
intermediaries in accordance with subsection (d).
(c) Grants to States.--
(1) In general.--Subject to paragraph (2), from the amount
made available for each fiscal year under subsection (b)(1),
the Secretary shall award grants to States, in accordance with
an allocation formula established by the Secretary, based on
the pro rata share of each State of the total need among all
States for an increased supply of affordable housing, as
determined on the basis of--
(A) the number and percentage of families in the
State that live in substandard housing;
(B) the number and percentage of families in the
State that pay more than 50 percent of their annual
income for housing costs;
(C) the number and percentage of persons living at
or below the poverty level in the State;
(D) the cost of developing or carrying out
substantial rehabilitation of housing in the State;
(E) the age of the multifamily housing stock in the
State; and
(F) such other factors as the Secretary determines
to be appropriate.
(2) Grant amount.--
(A) In general.--The amount of a grant award to a
State under this subsection shall be equal to the
lesser of--
(i) 4 times the amount of assistance
provided by the State from non-Federal sources;
and
(ii) the allocation determined in
accordance with paragraph (1).
(B) Non-federal sources.--The following shall be
considered non-Federal sources for purposes of this
section:
(i) 50 percent of funds allocable to tax
credits allocated under section 42 of the
Internal Revenue Code of 1986.
(ii) 50 percent of revenue from mortgage
revenue bonds issued under section 143 of such
Code.
(iii) 50 percent of proceeds from the sale
of tax exempt bonds.
(3) Award of state allocation to certain entities.--
(A) In general.--If the amount provided by a State
from non-Federal sources is less than 25 percent of the
amount that would be awarded to the State under this
subsection based on the allocation formula described in
paragraph (1), not later than 60 days after the date on
which the Secretary determines that the State is not
eligible for the full allocation determined under
paragraph (1), the Secretary shall issue a notice
regarding the availability of the funds for which the
State is ineligible.
(B) Applications.--Not later than 9 months after
publication of a notice of funding availability under
subparagraph (A), a nonprofit or public entity (or a
consortium thereof, which may include units of local
government working together on a regional basis) may
submit to the Secretary an application for the
available assistance or a portion thereof, which
application shall include--
(i) a certification that the applicant will
provide assistance in an amount equal to 25
percent of the amount of assistance made
available to the applicant under this
paragraph; and
(ii) an allocation plan that meets the
requirements of paragraph (4)(B) for use or
distribution in the State of any assistance
made available to the applicant under this
paragraph and the assistance provided by the
applicant for purposes of clause (i).
(C) Award of assistance.--The Secretary shall award
the amount that is not awarded to a State by operation
of paragraph (2) to 1 or more applicants that meet the
requirements of subparagraph (B) of this paragraph that
are selected by the Secretary based on selection
criteria, which shall be established by the Secretary
by regulation.
(4) Distribution to eligible entities.--
(A) In general.--Each State that receives a grant
award under this subsection shall distribute the amount
made available under the grant and the assistance
provided by the State from non-Federal sources for
purposes of paragraph (2)(A) to eligible entities for
the purpose of assisting those entities in carrying out
eligible activities in the State as follows:
(i) 75 percent shall be distributed to
eligible entities for eligible activities
relating to the development of affordable
housing for rental by extremely low-income
families in the State.
(ii) 25 percent shall be distributed to
eligible entities for eligible activities
relating to the development of affordable
housing for rental by low-income families in
the State, or for homeownership assistance for
low-income families in the State.
(B) Allocation plan.--Each State shall, after
notice to the public, an opportunity for public
comment, and consideration of public comments received,
establish an allocation plan for the distribution of
assistance under this paragraph, which shall be
submitted to the Secretary and shall be made available
to the public by the State, and which shall include--
(i) application requirements for eligible
entities seeking to receive such assistance,
including a requirement that each application
include--
(I) a certification by the
applicant that any housing developed
with assistance under this paragraph
will remain affordable for extremely
low-income families or low-income
families, as applicable, for not less
than 40 years;
(II) a certification by the
applicant that the tenant contribution
towards rent for a family residing in a
unit developed with assistance under
this paragraph will not exceed 30
percent of the adjusted income of that
family; and
(III) a certification by the
applicant that the owner of a project
in which any housing developed with
assistance under this paragraph is
located will make a percentage of units
in the project available to families
assisted under the voucher program
under section 8(o) of the United States
Housing Act of 1937 (42 U.S.C.
1437f(o)) on the same basis as other
families eligible for the housing
(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 or
rehabilitating the project that is
funded with assistance under this
paragraph; and
(ii) factors for consideration in selecting
among applicants that meet such application
requirements, which shall give preference to
applicants based on--
(I) the amount of assistance for
the eligible activities leveraged by
the applicant from private and other
non-Federal sources, including
assistance made available under section
8 of the United States Housing Act of
1937 (42 U.S.C. 1437f) that is devoted
to the project in which the housing to
be developed with assistance under this
paragraph is located;
(II) the extent of local assistance
that will be provided in carrying out
the eligible activities, including--
(aa) financial assistance;
and
(bb) the extent to which
the applicant has worked with
the unit of local government in
which the housing will be
located to address issues of siting and exclusionary zoning or other
policies that are barriers to affordable housing;
(III) the degree to which the
development in which the housing will
be located is mixed-income;
(IV) whether the housing will be
located in a census tract in which the
poverty rate is less than 20 percent or
in a community undergoing
revitalization;
(V) the extent of employment and
other opportunities for low-income
families in the area in which the
housing will be located; and
(VI) the extent to which the
applicant demonstrates the ability to
maintain units as affordable for
extremely low-income or low-income
families, as applicable, through the
use of assistance made available under
this paragraph, assistance leveraged
from non-Federal sources, assistance
made available under section 8 of the
United States Housing Act of 1937 (42
U.S.C. 1437f), State or local
assistance, programs to increase tenant
income, cross-subsidization, and any
other resources.
(C) Forms of assistance.--
(i) In general.--Assistance distributed
under this paragraph may be in the form of
capital grants, non-interest bearing or low-
interest loans or advances, deferred payment
loans, guarantees, and any other forms of
assistance approved by the Secretary.
(ii) Repayments.--If a State awards
assistance under this paragraph in the form of
a loan or other mechanism by which funds are
later repaid to the State, any repayments
received by the State shall be distributed by
the State in accordance with the allocation
plan described in subparagraph (B) the
following fiscal year.
(D) Coordination with other assistance.--In
distributing assistance under this paragraph, each
State shall, to the maximum extent practicable,
coordinate such distribution with the provision of
other affordable housing assistance by the State,
including--
(i) housing credit dollar amounts allocated
by the State under section 42(h) of the
Internal Revenue Code of 1986;
(ii) assistance made available under the
HOME Investment Partnerships Act or the
community development block grant program; and
(iii) private activity bonds.
(d) National Competition.--
(1) In general.--From the amount made available for each
fiscal year under subsection (b)(2), the Secretary shall award
grants on a competitive basis to eligible intermediaries, which
shall be used in accordance with paragraph (3) of this
subsection.
(2) Application requirements and selection criteria.--The
Secretary by regulation shall establish application
requirements and selection criteria for the award of
competitive grants to eligible intermediaries under this
subsection, which criteria shall include--
(A) the ability of the eligible intermediary to
meet housing needs of low-income families on a national
or regional scope;
(B) the capacity of the eligible intermediary to
use the grant award in accordance with paragraph (3),
based on the past performance and management of the
applicant; and
(C) the extent to which the eligible intermediary
has leveraged funding from private and other non-
Federal sources for the eligible activities.
(3) Use of grant award.--
(A) In general.--Except as provided in subparagraph
(B), each eligible intermediary that receives a grant
award under this subsection shall ensure that the
amount made available under the grant is used as
follows:
(i) 75 percent shall be used for eligible
activities relating to the development of
affordable housing for rental by extremely low-
income families.
(ii) 25 percent shall be used for eligible
activities relating to the development of
affordable housing for rental by low-income
families, or for homeownership assistance for
low-income families.
(B) Exception.--
(i) In general.--If the amount made
available under a grant award under this
subsection is used for a project described in
clause (ii), an eligible intermediary may use
the amount made available under the grant for
eligible activities relating to the development
of housing for rental by families whose incomes
are less than 60 percent of the area median
income, and for homeownership activities for
families whose incomes are less than 80 percent
of area median income.
(ii) Project contributing to a concerted
community revitalization plan.--A project is
described in this clause if--
(I) it is located in a community
undergoing concerted revitalization and
is contributing to a community
revitalization plan; and
(II) it is located in a census
tract in which--
(aa) the median household
income is less than 60 percent
of the area median income; or
(bb) the rate of poverty is
greater than 20 percent.
(C) Plan of use.--Each eligible intermediary that
receives a grant award under this subsection shall
establish a plan for the use or distribution of the
amount made available under the grant, which shall be
submitted to the Secretary, and which shall include
information relating to the manner in which the
eligible intermediary will either use or distribute
that amount, including--
(i) a certification that assistance made
available under this subsection will be used to
supplement assistance leveraged from private
and other non-Federal sources, including
assistance made available under section 8 of
the United States Housing Act of 1937 (42
U.S.C. 1437f) that is devoted to the project in
which the housing to be developed is located;
(ii) a certification that local assistance
will be provided in the carrying out the
eligible activities, which may include--
(I) financial assistance; and
(II) a good faith effort to work
with the unit of local government in
which the housing will be located to
address issues of siting and
exclusionary zoning or other policies
that are barriers to affordable
housing;
(iii) a certification that any housing
developed with assistance under this subsection
will remain affordable for extremely low-income
families or low-income families, as applicable,
for not less than 40 years;
(iv) a certification that any housing
developed by the applicant with assistance
under this subsection will be located--
(I) in a mixed-income development
in a census tract having a poverty rate
of not more than 20 percent, and near
employment and other opportunities for
low-income families; or
(II) in a community undergoing
revitalization;
(v) a certification that the tenant
contribution towards rent for a family residing
in a unit developed with assistance under this
paragraph will not exceed 30 percent of the
adjusted income of that family; and
(vi) a certification by the applicant that
the owner of a project in which any housing
developed with assistance under this subsection
is located will make a percentage of units in
the project available to families assisted
under the voucher program under section 8(o) of
the United States Housing Act of 1937 (42
U.S.C. 1437f(o)) on the same basis as other
families eligible for the housing (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 or rehabilitating the
project that is funded with assistance under
this subsection.
(D) Forms of assistance.--
(i) In general.--An eligible intermediary
may distribute the amount made available under
a grant under this subsection in the form of
capital grants, non-interest bearing or low-
interest loans or advances, deferred payment
loans, guarantees, and other forms of
assistance.
(ii) Repayments.--If an eligible
intermediary awards assistance under this
subsection in the form of a loan or other
mechanism by which funds are later repaid to
the eligible intermediary, any repayments
received by the eligible intermediary shall be
distributed by the eligible intermediary in
accordance with the plan of use described in
subparagraph (C) the following fiscal year.
SEC. 5. REGULATIONS.
Not later than 6 months after the date of enactment of this Act,
the Secretary of Housing and Urban Development shall promulgate
regulations to carry out this Act.
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