According to a committee statement, the fund would represent the largest expansion in federal housing programs in decades, with a goal of producing, rehabilitating and preserving 1.5 million housing units over the next 10 years. As amended, it will initially allocate between $800 million and $1 billion annually directly to states and local communities, without increasing government spending or the federal deficit; funding would come from other proposed legislation, including the GSE Affordable Housing Fund (H.R. 1427), FHA savings that result from the enactment of the Expanding American Homeownership Act (HR 1852), and any other sources of funds subsequently identified.

The committee also recently approved H.R. 3121, The Flood Insurance Reform and Modernization Act of 2007, which provides updated coverage following Hurricane Katrina.

According to a committee statement, the bill will ensure the program's continued viability by encouraging broader participation, increasing accountability, eliminating unnecessary federal subsidies and updating the flood insurance program. The bill also includes wind damage provisions, sponsored by Congressman Gene Taylor (D-Miss.), that one credit union lobbyist characterized as controversial.

“We have taken the necessary steps to reform a needed program for homeowners, and we have responsibly expanded the program to cover wind related damages from major weather events,” House Financial Services Committee Chairman Barney Frank (D-Mass.) commented.

H.R. 3121 requires greater accountability and financial responsibility at the National Flood Insurance Program; makes the updating and modernization of flood maps an ongoing process, and increases funding for mapping; clarifies flood insurance disclosures for consumers; provides for an appeals process for when consumers have to have insurance when new flood zone maps are issued; allows for premiums increases of up to 15% compared to the current 10% a year; and increases the NFIP's borrowing authority, among other things. The bill reauthorizes the program for five years.