A bill to provide for grants to State housing finance or State development agencies for the purpose of financing a portion of the development costs of housing projects owned by such agencies, by their subsidiaries, or by nonprofit sponsors funded by such agencies.

Authorizes the Secretary of Housing and Urban Development, under the Housing and Community Development Act, to make grants to any State housing finance or development agency to finance 30 percent of specified housing project development costs.

Permits the Secretary to condition any such grant on the promise that such agency agree to retain the housing project for 12 years, and to use the project for housing low-, moderate-, or middle-income families.

Authorizes to be appropriated such sums as may be necessary to make the grants authorized by this Act.