SEC-220 -- MATCHING REQUIREMENTS.


 (a) Contribution.-Each participating jurisdiction shall make
contributions to affordable housing assisted under this title that
total, throughout a fiscal year, not less than-

 (1) 25 percent of the total funds drawn from the jurisdiction's HOME
Investment Trust Fund in that fiscal year with respect to rental
assistance and housing rehabilitation;

 (2) 33 percent of the total funds drawn from the jurisdiction's HOME
Investment Trust Fund in that fiscal year with respect to substantial
rehabilitation; and

 (3) 50 percent of the total funds drawn from the jurisdiction's HOME
Investment Trust Fund in that fiscal year with respect to new
construction.
Such contributions shall be in addition to any amounts made available
under section 216(3)(A)(ii).

 (b) Recognition.-

 (1) In general.-A contribution shall be recognized for purposes of
subsection (a) only if it-

 (A) is made with respect to housing that qualifies as affordable
housing under section 215; or

 (B) is made with respect to any portion of a project not less than 50
percent of the units of which qualify as affordable housing under
section 215.

 (2) Administrative expenses.-Contributions for administrative expenses
shall be recognized only up to an amount equal to 7 percent of funds
provided for investment under this title.

 (c) Form.-Such contributions may be in the form of-

 (1) cash contributions from non-Federal resources, which may not
include funds from a grant made under section 106(b) or section 106(d)
of the Housing and Community Development Act of 1974;

 (2) payment of administrative expenses, as defined by the Secretary,
from non-Federal resources, which may include funds from a grant made
under section 106(b) or section 106(d) of the Housing and Community
Development Act of 1974;

 (3) the value of taxes, fees, or other charges that are normally and
customarily imposed but are waived, foregone, or deferred in a manner
that achieves affordability of housing assisted under this title;

 (4) the value of land or other real property as appraised according to
procedures acceptable to the Secretary; and

 (5) the value of investment in on-site and off-site infrastructure
directly required for affordable housing assisted under this title.

 (d) Reduction of Requirement.-If a jurisdiction demonstrates to the
satisfaction of the Secretary that a reduction of the matching
requirement specified in subsection (a) is necessary to permit the
jurisdiction to carry out the purposes of this title, the Secretary may
reduce the matching requirement during a period not to exceed 3 years
after the jurisdiction is first designated as a participating
jurisdiction. Such reduction shall be not more than 75 percent in the
first year, not more than 50 percent in the second year, and not more
than 25 percent in the third year.