ADMINISTRATIVE COSTS AS ELIGIBLE USE OF INVESTMENT.

SEC. 207. ADMINISTRATIVE COSTS AS ELIGIBLE USE OF INVESTMENT. (a) Housing Uses.—Section 212(a)(1) of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12742(a)(1) is amended by inserting after “organizations,” the following: “to provide for the payment of reasonable administrative and planning costs, to provide for the payment of operating expenses of community housing development organizations,”. (b) Eligible use.—Section 212 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12742) is amended— (1) in subsection (c)(1), by inserting “that exceed the amount specified under subsection (c)” before the comma at the end; (2) by redesignating subsections (c), (d) (as amended by the preceding provisions of this Act), and (e) as subsections (d), (e), and (I), respectively; and (3) by inserting after subsection (b) the following: “(c) Administrative Costs.—In each fiscal year, each participating jurisdiction may use not more than 10 percent of the funds made available under this subtitle to the jurisdiction for such year for any administrative and planning costs of the jurisdiction in carrying out this subtitle, including the costs of the salaries of persons engaged in administering and managing activities assisted with funds made available under this subtitle.”. (c) Recognition of Match.—Section 220 of the Cranston- Gonzalez National Affordable Housing Act (42 U.S.C. 12750) is amended— (1) in subsection (b)(2), by striking “shall” and all that follows and inserting “may not be recognized for purposes of subsection (a).”; and (2) in subsection (c)— 106 STAT. 3754 (A) by striking paragraph (2); and (B) by redesignating paragraphs (3), (4), and (6) as paragraphs (2), (3), and (4), respectively. (d) Limitation on Administrative Costs.—Section 212 of the Cranston-Gonzalez National Affordable Housing Act (42 U.S.C. 12742) is amended by adding at the end the following: “(g) Limitation on Operating Assistance.—A participating jurisdiction may not use more than 5 percent of its allocation under this subtitle for the payment of operating expenses for community housing development organizations.”.