SEC-215 -- QUALIFICATION AS AFFORDABLE HOUSING.


 (a) Rental Housing.-

 (1) Qualification.-Housing that is for rental shall qualify as
affordable housing under this title only if the housing-

 (A) bears rents not greater than the lesser of (i) 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, or
(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 smaller and
larger families, 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 Secretary's findings that such variations are necessary because
of prevailing levels of construction costs or fair market rents, or
unusually high or low family incomes;

 (B) has not less than 20 percent of the units (i) occupied by very
low-income families who pay as a contribution toward rent (excluding any
Federal or State rental subsidy provided on behalf of the family) not
more than 30 percent of the family's monthly adjusted income as
determined by the Secretary, or (ii) occupied by very low-income
families and bearing rents not greater than the gross rent for
rent-restricted residential units as determined under section 42(g)(2)
of the Internal Revenue Code of 1986;

 (C) is occupied only by households that qualify as low-income families;

 (D) is not refused for leasing to a holder of a voucher or certificate
of eligibility under section 8 of the United States Housing Act of 1937
because of the status of the prospective tenant as a holder of such
voucher or certificate of eligibility;

 (E) will remain affordable, according to binding commitments
satisfactory to the Secretary, for the remaining useful life of the
property, as determined by the Secretary, without regard to the term of
the mortgage or to transfer of ownership, or for such other period that
the Secretary determines is the longest feasible period of time
consistent with sound economics and the purposes of this Act; and

 (F) if newly constructed, meets the energy efficiency standards
promulgated by the Secretary in accordance with section 109 of this Act.

 (2) Adjustment of qualifying rent.-The Secretary may adjust the
qualifying rent established for a project under subparagraph (A) of
paragraph (1), only if the Secretary finds that such adjustment is
necessary to support the continued financial viability of the project
and only by such amount as the Secretary determines is necessary to
maintain continued financial viability of the project.

 (3) Increases in tenant income.-Housing shall qualify as affordable
housing despite a temporary noncompliance with subparagraph (B) or (C)
of paragraph (1) if such noncompliance is caused by increases in the
incomes of existing tenants and if actions satisfactory to the Secretary
are being taken to ensure that all vacancies are filled in accordance
with paragraph (1) until such noncompliance is corrected. Tenants who
no longer qualify as low-income families shall pay as rent not less than
30 percent of the family's adjusted monthly income, as recertified
annually.

 (4) Mixed-income project.-Housing that accounts for less than 100
percent of the dwelling units in a project shall qualify as affordable
housing if such housing meets the criteria of this section.

 (5) Mixed-use project.-Housing in a project that is designed in part
for uses other than residential use shall qualify as affordable housing
if such housing meets the criteria of this section.

 (b) Homeownership.-Housing that is for homeownership shall qualify as
affordable housing under this title only if the housing-

 (1) has an initial purchase price that does not exceed 95 percent of
the median purchase price for the area, as determined by the Secretary
with such adjustments for differences in structure, including whether
the housing is single-family or multifamily, and for new and old housing
as the Secretary determines to be appropriate;

 (2) is the principal residence of an owner whose family qualifies as
a low-income family at the time of purchase;

 (3) is made available for initial purchase only to first-time
homebuyers;

 (4) is made available for subsequent purchase only-

 (A) to persons who meet the qualifications specified under paragraph
(2), and

 (B) at a price consistent with guidelines that are established by the
participating jurisdiction and determined by the Secretary to be
appropriate-

 (i) to provide the owner with a fair return on investment, including
any improvements, and

 (ii) to ensure that the housing will remain affordable to a reasonable
range of low income homebuyers; and

 (5) if newly constructed, meets the energy efficiency standards
promulgated by the Secretary in accordance with section 109 of this Act.