N-CSRS

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549

FORM N-CSR

CERTIFIED SHAREHOLDER REPORT OF REGISTERED MANAGEMENT
INVESTMENT COMPANIES

Investment Company Act File Number: 811-3493
Series Identifier: S000009768
Class Identifier: C000026832

American Federation of Labor –
Congress of Industrial Organizations
Housing Investment Trust
(Exact name of registrant as specified in charter)

Until September 17, 2007:
1717 K Street, N.W., Suite 707
Washington, D.C. 20036

Effective September 17, 2007:
2401 Pennsylvania Avenue, N.W., Suite 200
Washington, D.C. 20037
(Address of principal executive offices) (Zip code)

Kenneth G. Lore
Bingham McCutchen LLP
2020 K Street, N.W., Washington, DC 20006
(Name and address of agent for service)

(202) 331-8055
(Registrant’s telephone number, including area code)

Date of fiscal year end: December 31
Date of reporting period: January 1, 2007 through June 30, 2007

Item 1. Reports to Stockholders.

A copy of the 2007 Semi-Annual Report (the “Report”) of the AFL-CIO Housing Investment Trust (the “Trust”) transmitted to Trust participants pursuant to Rule 30e-1 under the Investment Company Act of 1940, as amended (17 CFR 270.30e-1) (the “Act”), is included herewith.

AFL-CIO HOUSING

INVESTMENT TRUST

SEMI-ANNUAL REPORT

JUNE 30, 2007

Cover

Top: Rollins Square, Boston, MA.
Bottom, from left: Maverick Landing, Boston, MA; construction at the Carruth Apartments, Dorchester, MA; Chancery Square, Morristown, NJ; resident of Woodland Springs, District Heights, MD; Skyline Apartments, Chicago, IL.

Report to Participants

Figure 1.
HIT Performance vs. Lehman Aggregate Bond Index as of June 30, 2007

Figure 2.
Comparison of $50,000 Investment in the HIT and Lehman Aggregate

The data quoted represents past performance and is no guarantee of future results. Investment results and principal value will fluctuate so that units in the HIT, when redeemed, may be worth more or less than their original cost. The HIT’s current performance may be lower or higher than the performance quoted. Performance data current to the most recent month-end is available on the HIT’s website at www.aflcio-hit.com.

The Lehman Brothers Aggregate Bond Index is an unmanaged index and is not available for direct investment. Its returns would be lower if they reflected the expenses associated with active management of an actual portfolio.

Investors should consider the HIT’s investment objectives, risks and expenses carefully before investing. A prospectus containing more complete information may be obtained from the HIT by calling the Marketing and Investor Relations Department collect at 202-331-8055 or by viewing the HIT’s website at www.aflcio-hit.com. The prospectus should be read carefully before investing.

Mid-Year Discussion of Performance

The first half of 2007 was a productive period for the AFL-CIO Housing Investment Trust as it made $76.3 million in financing commitments for 14 new multifamily investments. The HIT’s net returns at June 30 were 5.86% for the one-year period and 3.97%, 4.37% and 6.12% for the three-, five- and ten-year periods (see Figure 1). The HIT underperformed the benchmark for the one-, three- and five-year periods by 26, 1 and 11 basis points, respectively, and outperformed the benchmark for the ten-year period by 10 basis points.

Global growth and the cooling U.S. housing market affected the performance of fixed-income investments such as the HIT during the first half of the year. These factors contributed to generally higher interest rates (see Figure 3, U.S. Treasury Yield Curve) and wider spreads between risk-free securities (Treasuries) and other bonds. In the subprime mortgage sector the cooling U.S. housing market produced a steep rise in delinquencies among high-risk borrowers (as seen in Figure 4). The HIT has no subprime loans or investments in its portfolio.

As fall-out from the weakening of the subprime market, risk premiums increased on high-quality securities during the six-month period, causing their prices to fall relative to Treasuries. Prices dropped as well for commercial mortgage securities, including agency-insured multifamily mortgage securities and AAA-rated commercial mortgage-backed securities, as spreads widened 5 to 10 basis points versus swaps and 25 to 30 basis points versus Treasuries. Swap spreads widened across the market, reflecting a flight to quality and shortening of duration as fixed-income investors responded to uncertainty about the housing market.

Problems in the residential subprime sector and the consequent widening of spreads across all mortgage sectors during the first half of the year led to price volatility in the near term, even in high quality government and agency insured mortgage securities. The HIT’s performance relative to its benchmark at June 30 reflected in part the HIT’s concentration on high credit quality mortgage securities, whose performance lagged the benchmark. Also contributing to the underperformance were the HIT’s underweight in corporate bonds and Treasuries as compared to the benchmark, both of which were strong performers relative to other sectors of the investment-grade fixed-income universe during the period.

Interest rates rose between 19 and 49 basis points across the U.S. dollar swap curve during the first half of the year. This led to price declines offsetting the income earned in most fixed-income portfolios. However, yields and swap spreads were near a five-year high at mid-year, making the bonds in which the HIT specializes cheaper than they had been in recent years, relative to prices for similar-maturity Treasuries (see Figure 5).

1

Report to Participants

Figure 3.
U.S. Treasury Yield Curve
Source: Bloomberg L.P.

Figure 4.
Subprime Mortgage Delinquency Rate
Source: Mortgage Bankers’ Association.

Figure 5.
10-year U.S. Treasury and 10-year Swap Rates
(End-of-Month)
Source: Bloomberg L.P.

In this environment of wider spreads and heightened volatility at mid-year, it is important to note that the credit quality of the HIT portfolio remains sound. In fact, the fundamental credit exposure of the HIT portfolio has not been affected by the subprime issues in the market place since the HIT does not invest in this sector. Over 98% of the HIT portfolio is AAA-rated or carries a guarantee from the U.S. government or a government-sponsored enterprise. Furthermore, the HIT does not have any borrowings and has not employed a high leverage strategy to meet its objectives.

High credit quality and capital preservation are key goals of the HIT’s investment strategy. The HIT has successfully achieved these goals and maintained this strategy through many and varied market conditions. It is the HIT’s opinion that the recent market volatility is not a long-term phenomenon. For this reason, looking forward, the HIT intends to continue to execute its long-term portfolio strategy seeking superior fundamentals of higher yield, better credit quality, and neutral interest rate risk versus the Lehman Aggregate Bond Index. Overweighting high credit quality multifamily mortgage investments will continue to be a focal point in executing the strategy.

HIT Portfolio Distribution

Includes funded and unfunded commitments as of June 30, 2007

“The fundamental credit exposure of the HIT portfolio has not been affected by the subprime issues.”

2

Report to Participants

Multifamily Investments

The $76.3 million in financing committed during the first half of 2007 will enhance the HIT’s multifamily holdings as it helps advance the goals of improving the nation’s housing stock and creating family-supporting union jobs for the benefit of working people and their communities. The 14 new investments will generate 2,013 units of housing in six states. Three-quarters of the units will be affordable to low- and moderate-income households. With total development costs of more than $377.4 million, the projects will provide some 2,500 jobs for union members in construction and related industries. To produce these new investment opportunities, the HIT continued to draw on its broad network of community partners from labor, housing development, government and real estate finance. Following are examples of the projects the HIT financed during this period.

Back of the Hill Apartments
Boston, Massachusetts

In June, the HIT committed $4 million for the purchase of a tax-exempt bond to help finance the $27.4 million rehabilitation of this affordable housing project that serves low-income elderly and physically challenged persons in Boston. The project is one of eight Massachusetts projects financed in the first half of the year through HIT’s work with MassHousing, the state housing finance agency. The HIT’s commitments to these projects total $16.8 million. Ninety-six percent of the 764 units in the eight projects will be affordable to low- and moderate-income persons. The Massachusetts projects will generate approximately 350 union jobs in the construction trades.

Queens Family Courthouse
Queens, New York

The HIT purchased $10 million in tax-exempt bonds from New York City’s Housing Development Corporation to finance the $165 million redevelopment of the Queens Family Courthouse. This major redevelopment consists of 277 housing units, of which 166 are affordable to low- and moderate-income families. An additional 69 affordable cooperative units are being financed separately as workforce housing. The project is generating over 1,000 union construction jobs. The investment brings to $306.4 million HIT’s investments under its New York City Community Investment Initiative. The 16 projects financed by the HIT through this initiative have an estimated combined value of $1.4 billion as of June 30, 2007.

Liberty Meadows Estates
Joliet, Illinois

The HIT committed $3.5 million to finance Liberty Meadows Estates, phase I, a $17.8 million new construction project consisting of 38 single-family detached houses and 36 duplex units. The 74 homes will be rented for 15 years, consistent with the Low Income Housing Tax Credit guidelines, after which the developer intends to allow tenants to purchase them. This is the eighth project that the HIT has financed in cooperation with the Illinois Housing Development Authority (IHDA) under a 2005 memorandum of agreement that sets a goal of $250 million in HIT investments and 2,500 housing units in Illinois housing over five years. So far, the HIT has financed 776 units or 31% of that goal. For more than a decade, the HIT has worked with IHDA to produce more than 3,500 housing units and generate some 2,700 union jobs with over $170 million in HIT financing and total development costs of $427.0 million.

“Over 98% of the HIT portfolio is AAA-rated or carries a guarantee from the U.S. government or a government-sponsored enterprise.”

3

Leadership

Board of Trustees

Richard Ravitch, Chairman*

Principal, Ravitch Rice & Co. LLC

John J. Sweeney*

President, AFL-CIO

Richard L. Trumka

Secretary-Treasurer, AFL-CIO

Linda Chavez-Thompson

Executive Vice-President, AFL-CIO

John J. Flynn

President, International Union of Bricklayers and Allied Craftworkers

Stephen Frank

Retired; formerly Vice President and Chief Financial Officer, The Small Business Funding Corporation

Frank Hurt

International President, Bakery, Confectionery & Tobacco Workers and Grain Millers International Union

George Latimer

Distinguished Visiting Professor of Urban Land Studies, Macalester College

Jack Quinn

President, Cassidy & Associates; formerly Member of Congress, 27th District, New York

Marlyn J. Spear, CFA

Chief Investment Officer, Building Trades United Pension Trust Fund (Milwaukee and Vicinity)

Tony Stanley*

Director, TransCon Builders, Inc.; formerly Executive Vice President, TransCon Builders, Inc.

Edward C. Sullivan

President, Building and Construction Trades Department, AFL-CIO

Jon F. Walters

International Secretary-Treasurer, International Brotherhood of Electrical Workers

James A. Williams

General President, International Union of Painters and Allied Trades of the United States and Canada

Officers and Key Staff

Stephen Coyle

Chief Executive Officer

Helen R. Kanovsky

Chief Operating Officer

Erica Khatchadourian

Chief Financial Officer

Chang Suh

Executive Vice President and Chief Portfolio Manager

Mary C. Moynihan

General Counsel

Stephanie H. Wiggins

Chief Investment Officer – Multifamily Finance

Marcie Cohen

Senior Vice President

Harpreet Peleg

Controller

Christopher Kaiser

Chief Compliance Officer

Lesyllee White

Director of Marketing

Carol Nixon

Director, New York City Office

Paul Barrett

Director, Boston Office

David Landenwitch

Acting Director, Western Regional Office

Service Providers

Independent Registered Public Accounting Firm

Ernst & Young LLP
McLean, Virginia

Corporate Counsel

Bingham McCutchen LLP
Washington, D.C.

Securities Counsel

Wilmer Cutler Pickering Hale and Dorr LLP
Washington, D.C.

Transfer Agent

PFPC Inc.
King of Prussia, Pennsylvania

Custodian

PFPC Trust Company
Philadelphia, Pennsylvania

Investment Adviser (Through May 30, 2007)

Wellington Management Company, LLP
Boston, Massachusetts

National Office

Until September 17, 2007:

1717 K Street, N.W., Suite 707
Washington, D.C. 20036

Effective September 17, 2007:

2401 Pennsylvania Avenue, N.W., Suite 200
Washington, D.C. 20037
(202) 331-8055

New York City Office

1270 Avenue of the Americas, Suite 210
New York, New York 10020
(212) 554-2750

Western Regional Office

235 Montgomery Street, Suite 1001
San Francisco, California 94104
(415) 433-3044

Boston Office

655 Summer Street
Boston, Massachusetts 02210
(617) 261-4444

www.aflcio-hit.com

Gulf Coast Revitalization Program

1100 Poydras Street, Suite 2870
New Orleans, Louisiana 70163
(504) 599-8750

* Executive Committee member.

4

FINANCIAL STATEMENTS
JUNE 30, 2007
	AFL-CIO HOUSING INVESTMENT TRUST

AFL-CIO HOUSING INVESTMENT TRUST

Statement of Assets and Liabilities
June 30, 2007 (Dollars in thousands; unaudited)

Assets
Investments, at fair value (amortized cost $3,677,218)*	$	3,611,544
Cash		6,915
Accrued interest receivable		17,807
Receivables for investments sold		873
Accounts receivable		45
Prepaid expenses and other assets		894
Total Assets		3,638,078
Liabilities
Accounts payable and accrued expenses		2,620
Payables for investments purchased		48,038
Redemptions payable		38,221
Refundable deposits		690
Income distribution payable, net of dividends reinvested of $13,272		1,972
Total Liabilities		91,541
Net Assets Applicable to Participants’ Equity — Certificates of Participation —Authorized Unlimited; Outstanding 3,344,082 Units	$	3,546,537
Net Asset Value Per Unit of Participation (in dollars)	$	1,060.54
Participants’ Equity
Participants’ equity consisted of the following:
Amount invested and reinvested by current participants	$	3,630,805
Net unrealized depreciation of investments		(65,674	)
Undistributed net investment income		2,077
Accumulated net realized losses		(20,671	)
Total Participants’ Equity	$	3,546,537

*	The cost for federal tax purposes approximates book cost.
	See accompanying Notes to Financial Statements.

6

SEMI-ANNUAL REPORT JUNE 2007

Schedule of Portfolio Investments
June 30, 2007 (Dollars in thousands; unaudited)

FHA Permanent Securities (3.8% of net assets)

	Interest Rate			Maturity Dates		Commitment Amount		Face Amount		Amortized Cost		Value
Single Family		7.75	%		Jul-2021-Aug-2021			$	33	$	33	$	33
		8.00	%		Jul-2021				32		32		32
									65		65		65
Multifamily1		5.25	%		Mar-2024				5,029		5,053		4,796
		5.60	%		Jun-2038				2,861		2,865		2,803
		5.62	%		Jun-2014				685		684		670
		5.65	%		Oct-2038				2,196		2,265		2,134
		5.87	%		Jun-2044				1,960		1,961		1,914
		6.02	%		Jun-2035				6,857		6,856		6,829
		6.40	%		Jul-2046				4,095		4,098		4,181
		6.66	%		May-2040				5,728		5,727		5,777
		6.70	%		Dec-2042				5,990		5,987		6,118
		6.75	%		Feb-2039-Jul-2040				6,448		6,416		6,636
		6.88	%		Apr-2031				28,394		28,077		28,945
		7.00	%		Jun-2039				6,010		6,048		6,081
		7.05	%		Jul-2043				5,311		5,311		5,531
		7.13	%		Mar-2040				7,858		7,828		8,289
		7.20	%		Dec-2033-Oct-2039				10,013		10,009		10,533
		7.50	%		Sep-2032				1,614		1,616		1,758
		7.70	%		Oct-2039				12,058		11,992		12,287
		7.75	%		Oct-2038				1,390		1,382		1,396
		7.88	%		Jul-2038				5,047		5,047		4,996
		7.93	%		Apr-2042				2,886		2,886		3,220
		8.15	%		Mar-2037				1,187		1,300		1,231
		8.27	%		Jun-2042				2,526		2,526		2,741
		8.38	%		Apr-2008				108		112		108
		8.40	%		Apr-2012				316		316		317
		8.75	%		Aug-2036				3,681		3,678		3,694
									130,248		130,040		132,985
Forward Commitments1		6.65	%		Jun-2049		1,120		—		—		15
							1,120		—		—		15
Total FHA Permanent Securities						$	1,120	$	130,313	$	130,105	$	133,065

7

AFL-CIO HOUSING INVESTMENT TRUST

Schedule of Portfolio Investments
June 30, 2007 (Dollars in thousands; unaudited)

FHA Construction Securities (0.5% of net assets)

	Interest Rates2						Maturity Date		Commitment Amount		Face Amount		Amortized Cost		Value
	Permanent			Construction
Multifamily1		5.35	%		5.35	%		Mar-2047	$	8,050	$	8,036	$	8,046	$	7,623
		5.55	%		5.55	%		May-2042		8,950		8,950		8,954		8,612
										17,000		16,986		17,000		16,235
Forward Commitments1		5.89	%		5.89	%		Mar-2038		5,350		—		—		(190	)
										5,350		—		—		(190	)
Total FHA Construction Securities									$	22,350	$	16,986	$	17,000	$	16,045

Ginnie Mae Securities (28.2% of net assets)

	Interest Rate		Maturity Dates		Commitment Amount	Face Amount		Amortized Cost		Value
Single Family	5.50	%		Jan-2033-Aug-2033	$	$	9,146	$	9,243	$	8,898
	6.00	%		Jan-2032-Jun-2033			4,719		4,877		4,709
	6.50	%		Jul-2028-Dec-2028			409		409		416
	7.00	%		Nov-2016-Jan-2030			7,057		7,202		7,322
	7.50	%		Apr-2013-Aug-2030			6,992		7,137		7,259
	8.00	%		Nov-2009-Nov-2030			2,799		2,873		2,937
	8.50	%		Nov-2009-Aug-2027			2,485		2,538		2,656
	9.00	%		May-2016-Jun-2025			763		782		825
	9.50	%		Sep-2021-Sep-2030			249		253		275
	10.00	%		Jun-2019			1		1		1
	13.00	%		Jul-2014			1		1		1
	13.25	%		Dec-2014			1		1		1
							34,622		35,317		35,300
Multifamily1	2.91	%		Jun-2018-Aug-2020			7,317		7,251		7,042
	3.53	%		Jan-2032			1,041		995		1,004
	3.61	%		May-2018			7,758		7,625		7,603
	3.62	%		May-2017			22,186		21,497		21,467
	3.65	%		Sep-2017-Oct-2027			18,613		18,389		17,905
	3.96	%		May-2032			1,000		947		962
	4.24	%		Feb-2039			5,000		4,709		4,626
	4.25	%		Feb-2031			6,000		5,969		5,772
	4.26	%		Jul-2029			3,000		2,992		2,866
	4.43	%		Apr-2034-Jun-2034			109,471		107,247		100,534
	4.49	%		Apr-2023			8,531		8,531		8,251
	4.59	%		May-2033			16,300		16,291		15,928
	4.65	%		Mar-2026			288		287		284
	4.66	%		Dec-2030			8,617		8,684		8,250
	4.70	%		Dec-2024			13,310		13,010		12,944
	4.71	%		May-2025			33,294		33,276		32,129
	4.78	%		Apr-2034			27,592		28,798		26,907

(continued, next page)

8

SEMI-ANNUAL REPORT JUNE 2007

Schedule of Portfolio Investments
June 30, 2007 (Dollars in thousands; unaudited)

Ginnie Mae Securities (28.2% of net assets), continued

	Interest Rate		Maturity Dates		Commitment Amount		Face Amount		Amortized Cost		Value
	4.83	%		May-2046				5,620		5,620		5,375
	4.88	%		Mar-2036				17,000		16,755		16,149
	4.92	%		Feb-2034-May-2034				65,000		64,664		62,241
	4.94	%		Jun-2046				3,980		3,985		3,828
	5.00	%		Dec-2033				5,278		5,333		5,144
	5.05	%		Nov-2028				32,000		32,092		31,610
	5.08	%		Jan-2030				23,383		22,923		23,109
	5.12	%		Feb-2037				10,000		10,178		9,528
	5.13	%		Jul-2024				12,000		11,966		11,884
	5.15	%		Jun-2023				35,393		36,026		34,110
	5.18	%		May-2042				2,248		2,275		2,176
	5.19	%		May-2045				8,865		8,627		8,446
	5.20	%		Apr-2047				26,205		26,470		25,431
	5.21	%		Jan-2045				5,715		5,716		5,480
	5.25	%		Feb-2031-Aug-2032				56,014		55,849		54,249
	5.27	%		Aug-2040				10,000		9,752		9,376
	5.30	%		Apr-2039-May-2041				68,000		66,947		65,576
	5.32	%		Aug-2030-Dec-2037				50,000		49,833		48,830
	5.34	%		Jul-2040				18,000		17,645		16,959
	5.38	%		Apr-2025				496		512		493
	5.45	%		May-2042				2,330		2,414		2,299
	5.50	%		Sep-2023-Jul-2033				37,814		39,546		37,544
	5.55	%		May-2026-Mar-2045				28,592		28,717		28,366
	5.58	%		May-2031-Oct-2031				94,582		94,951		92,823
	5.68	%		Jul-2027				15,152		15,133		15,077
	5.70	%		Mar-2037				2,485		2,497		2,460
	5.75	%		Dec-2026				3,907		3,961		3,946
	5.88	%		Mar-2024				2,287		2,288		2,285
	6.00	%		Jan-2046				3,658		3,661		3,775
	6.05	%		Jun-2043				6,088		6,088		6,183
	6.11	%		Nov-2021				84		84		84
	6.26	%		Apr-2027				10,000		10,741		10,143
	6.38	%		Mar-2026				10,000		10,282		10,203
	6.41	%		Aug-2023				3,464		3,464		3,515
	7.00	%		Jun-2043				28,484		28,484		29,942
								993,442		991,977		963,113
Forward Commitments1	5.75	%		Jul-2037		3,360		—		—		10
	5.85	%		Dec-2037		3,250		—		—		31
						6,610		—		—		41
Total Ginnie Mae Securities					$	6,610	$	1,028,064	$	1,027,294	$	998,454

9

AFL-CIO HOUSING INVESTMENT TRUST

Schedule of Portfolio Investments
June 30, 2007 (Dollars in thousands; unaudited)

Ginnie Mae Construction Securities (3.2% of net assets)

	Interest Rates2					Maturity Date			Commitment Amount		Face Amount		Amortized Cost			Value
	Permanent		Construction
Multifamily1	4.63	%		4.63	%		Sep-2037	3	$	1,500	$	1,500	$	1,456		$	1,379
	4.70	%		4.70	%		Jan-2047	3		6,035		6,035		6,047			5,679
	4.74	%		4.74	%		Feb-2045	3		6,418		5,887		5,692			5,457
	4.90	%		4.90	%		Mar-2044	3		1,000		1,000		990			939
	5.21	%		5.21	%		Jan-2047	3		16,188		15,264		15,134			14,632
	5.34	%		5.34	%		Mar-2046			11,340		10,178		10,195			9,763
	5.46	%		5.46	%		Feb-2047			3,165		3,082		3,104			3,041
	5.85	%		5.85	%		Nov-2045			2,091		1,974		1,977			1,977
	6.22	%		5.75	%		Aug-2035			14,599		12,209		12,219			12,467
	6.25	%		6.25	%		Feb-2034			4,890		689		967			885
	7.75	%		7.25	%		Aug-2035			51,779		51,779		51,533			55,920
										119,005		109,597		109,314			112,139
Forward Commitments1	5.40	%		5.40	%		Dec-2048			9,514		—		(119	)		(266	)
										9,514		—		(119	)		(266	)
Total Ginnie Mae Construction Securities									$	128,519	$	109,597	$	109,195		$	111,873

Freddie Mac Securities (15.6% of net assets)

	Interest Rate			Maturity Dates		Face Amount		Amortized Cost		Value
Single Family		4.00	%		Oct-2033	$	9,419	$	9,289	$	9,275
		4.24	%		Jun-2033		3,816		3,801		3,794
		4.37	%		Jul-2035		2,213		2,204		2,197
		4.50	%		Aug-2018-Feb-2019		21,259		21,321		20,260
		5.00	%		Jan-2019-Jul-2037		86,803		84,888		82,560
		5.07	%		Apr-2035		2,119		2,119		2,108
		5.50	%		Oct-2017-Aug-2037		166,665		165,081		161,242
		5.62	%		Dec-2035-Feb-2036		50,295		50,274		50,279
		5.67	%		Apr-2036		9,411		9,396		9,411
		6.00	%		Mar-2014-Jan-2037		148,851		151,449		147,946
		6.50	%		Oct-2013-Sep-2036		31,760		32,482		32,136
		7.00	%		Mar-2011-Mar-2030		2,226		2,200		2,278
		7.50	%		Jul-2010-Apr-2031		1,917		1,904		1,972
		8.00	%		May-2008-Feb-2030		749		743		772
		8.50	%		Jun-2010-Jan-2025		602		608		634
		9.00	%		Sep-2010-Mar-2025		220		221		232
							538,325		537,980		527,096
Multifamily1		5.65	%		Apr-2016		14,662		14,713		14,639
		5.42	%		Apr-2016		10,000		9,907		9,731
		8.00	%		Feb-2009		2,169		2,160		2,176
							26,831		26,780		26,546
Total Freddie Mac Securities						$	565,156	$	564,760	$	553,642

10

SEMI-ANNUAL REPORT JUNE 2007

Schedule of Portfolio Investments
June 30, 2007 (Dollars in thousands; unaudited)

Fannie Mae Securities (38.1% of net assets)

	Interest Rate			Maturity Dates			Commitment Amount		Face Amount		Amortized Cost		Value
Single Family		3.97	%		Aug-2033			$	$	1,542	$	1,537	$	1,523
		4.00	%		Jul-2033					11,173		11,246		11,104
		4.05	%		Jul-2033					4,882		4,841		4,834
		4.27	%		May-2033					4,384		4,414		4,370
		4.28	%		Aug-2033					4,618		4,608		4,594
		4.30	%		Aug-2033					14,383		14,341		14,371
		4.50	%		Jun-2018-Feb-2019					13,884		14,070		13,228
		4.55	%		Nov-2033					13,055		13,066		12,991
		4.59	%		Aug-2034					824		829		817
		4.81	%		Sep-2035					4,832		4,809		4,830
		5.00	%		Jul-2018-Jun-2037					90,475		89,819		85,908
		5.50	%		Jul-2017-Aug-2036					185,283		186,583		179,664
		6.00	%		Apr-2016-Jun-2037					208,028		210,182		206,283
		6.50	%		Nov-2016-Jun-2036					51,938		52,593		52,517
		7.00	%		Nov-2013-May-2032					6,920		6,995		7,162
		7.50	%		Nov-2016-Sep-2031					2,545		2,525		2,654
		8.00	%		Jun-2012-May-2031					1,477		1,495		1,528
		8.50	%		Nov-2009-Apr-2031					1,093		1,110		1,151
		9.00	%		Jul-2009-May-2025					304		307		323
										621,640		625,370		609,852
Multifamily1		4.10	%		Jun-2027					9,498		9,296		9,168
		4.22	%		Jul-2018					4,810		4,496		4,464
		4.48	%		Oct-2031					14,498		14,500		14,181
		4.66	%		Jul-2021-Sep-2033					8,591		8,710		7,976
		4.67	%		Aug-2033					9,600		9,582		9,060
		4.99	%		Mar-2021-Aug-2021					42,350		42,334		39,298
		5.08	%		Jan-2018					5,688		5,560		5,497
		5.15	%		Oct-2022					4,636		4,672		4,466
		5.29	%		Jun-2017-May-2022					9,093		9,108		8,764
		5.34	%		Apr-2016					6,674		6,657		6,573
		5.35	%		Apr-2012-Jun-2018					4,378		4,397		4,336
		5.36	%		Feb-2016					5,000		5,018		4,913
		5.43	%		Nov-2013					1,401		1,399		1,401
		5.44	%		Mar-2016					3,939		4,007		3,898
		5.45	%		May-2033					3,246		3,287		3,136
		5.46	%		Feb-2017					51,399		52,422		50,805
		5.52	%		May-2016					22,893		22,516		22,799
		5.53	%		Apr-2017					67,874		67,878		67,408
		5.59	%		May-2017					7,509		7,534		7,494
		5.60	%		Feb-2018-Jan-2024					12,834		12,832		12,594
		5.62	%		Jun-2011					28,946		28,653		28,949
		5.70	%		Mar-2009-Jun-2016					7,014		7,252		7,049
		5.80	%		May-2018	4		75,000		67,720		67,348		66,841
		5.86	%		Dec-2016					401		404		406
		5.91	%		Mar-2037					2,194		2,268		2,179
		5.92	%		Dec-2016					397		402		401
		5.96	%		Jan-2029					485		495		486
		6.03	%		Jun-2017-Jun-2036					5,876		6,105		5,941
		6.06	%		Jul-2034					10,630		11,080		10,732
		6.10	%		Apr-2011					2,773		2,823		2,828

(continued, next page)

11

AFL-CIO HOUSING INVESTMENT TRUST

Schedule of Portfolio Investments
June 30, 2007 (Dollars in thousands; unaudited)

Fannie Mae Securities (38.1% of net assets) continued

	Interest Rate		Maturity Dates		Commitment Amount		Face Amount		Amortized Cost		Value
	6.13	%		Dec-2016				3,708		3,967		3,812
	6.14	%		Sep-2033				323		347		330
	6.15	%		Oct-2032				3,714		3,814		3,786
	6.16	%		Aug-2013				12,129		12,883		12,183
	6.19	%		Jul-2013				5,000		5,324		5,121
	6.22	%		Aug-2032				1,896		1,962		1,942
	6.23	%		Sep-2034				1,549		1,647		1,585
	6.27	%		Jan-2012				2,122		2,141		2,187
	6.28	%		Nov-2028				3,440		3,718		3,527
	6.35	%		Jun-2020-Aug-2032				28,525		29,803		28,993
	6.38	%		Jul-2021				5,944		6,150		6,223
	6.39	%		Apr-2019				1,032		1,104		1,073
	6.41	%		Aug-2013				1,939		2,047		1,954
	6.42	%		Apr-2011				1,394		1,451		1,403
	6.44	%		Apr-2014-Dec-2018				47,042		47,535		49,592
	6.50	%		Jun-2016				2,713		2,709		2,817
	6.52	%		May-2029				5,956		6,623		6,250
	6.53	%		May-2030				2,673		2,678		2,667
	6.63	%		Jun-2014-Apr-2019				4,710		4,732		4,921
	6.65	%		Aug-2011				1,736		1,851		1,808
	6.70	%		Jan-2011				2,480		2,585		2,495
	6.79	%		Aug-2009				7,244		7,223		7,412
	6.80	%		Jul-2016				885		885		930
	6.85	%		Aug-2014				44,835		44,765		48,041
	6.88	%		Feb-2028				5,010		5,569		5,250
	7.00	%		Jun-2018				4,081		4,081		4,306
	7.01	%		Apr-2031				3,521		3,555		3,761
	7.07	%		Feb-2031				17,776		18,140		19,041
	7.18	%		Aug-2016				547		547		584
	7.20	%		Apr-2010-Aug-2029				9,369		9,124		9,953
	7.25	%		Nov-2011-Jul-2012				8,848		8,848		9,088
	7.26	%		Dec-2018				13,292		14,517		14,314
	7.46	%		Aug-2029				9,649		10,950		10,461
	7.50	%		Dec-2014				1,754		1,754		1,879
	7.53	%		Feb-2024				5,471		6,089		5,534
	7.71	%		Feb-2010				9,279		9,320		9,309
	7.75	%		Dec-2012-Dec-2024				3,829		3,830		4,134
	8.00	%		Nov-2019				2,161		2,153		2,169
	8.13	%		Sep-2012-Aug-2020				8,630		8,600		8,787
	8.38	%		Jan-2022				942		943		946
	8.40	%		Jul-2023				517		508		578
	8.50	%		Nov-2019-Sep-2026				5,489		5,853		6,123
	8.63	%		Sep-2028				6,778		6,778		7,654
	9.13	%		Sep-2015				2,818		2,802		2,833
						75,000		735,097		744,940		741,799
Forward Commitments1	5.55	%		May-2018		31,000		—		—		(871	)
						31,000		—		—		(871	)
Total Fannie Mae Securities					$	106,000	$	1,356,737	$	1,370,310	$	1,350,780

12

SEMI-ANNUAL REPORT JUNE 2007

Schedule of Portfolio Investments
June 30, 2007 (Dollars in thousands; unaudited)

Commercial Mortgage-Backed Securities (6.5% of net assets)

	Interest Rate		Maturity Dates		Face Amount		Amortized Cost		Value
	5.10	%		Aug-2038	$	20,000	$	19,015	$	19,083
	5.33	%		Feb-2044		20,000		20,109		19,190
	5.34	%		Dec-2043		25,000		25,122		23,951
	5.41	%		Dec-2040		17,000		16,690		16,539
	5.43	%		Feb-2040		30,000		30,149		29,009
	5.45	%		Feb-2044		15,000		15,080		14,516
	5.47	%		Jan-2045		10,000		10,054		9,696
	5.54	%		Oct-2041-Jan-2049		55,500		55,783		54,122
	5.61	%		Feb-2039		15,000		15,138		14,716
	5.71	%		Jun-2040		30,000		30,042		29,766
Total Commercial Mortgage-Backed Securities					$	237,500	$	237,182	$	230,588

Government-Sponsored Enterprise Securities (1.2% of net assets)

Issuer	Interest Rate			Maturity Date		Face Amount		Amortized Cost		Value
Fannie Mae		6.00	%		Feb-2020	$	45,000	$	45,205	$	44,118
Total Government-Sponsored Enterprise Securities						$	45,000	$	45,205	$	44,118

United States Treasury Securities (1.2% of net assets)

	Interest Rate		Maturity Date		Face Amount		Amortized Cost		Value
	4.50	%		May-2017	$	15,000	$	14,298	$	14,379
	4.63	%		Nov-2016		30,000		29,641		29,076
Total United States Treasury Securities					$	45,000	$	43,939	$	43,455

State Housing Finance Agency Securities (1.1% of net assets)

	Issuer		Interest Rate			Maturity Date		Face Amount		Amortized Cost		Value
Multifamily1		MA Housing Finance Agency		3.80	%		Jun-2042	$	10,000	$	10,000	$	10,000
		MA Housing Finance Agency		4.20	%		Jun-2010		300		300		300
		MA Housing Finance Agency		5.25	%		Dec-2048		2,500		2,500		2,471
		MA Housing Finance Agency		5.30	%		Jun-2049		4,000		4,000		4,032
		MA Housing Finance Agency		5.42	%		Jun-2009		2,610		2,610		2,604
		MA Housing Finance Agency		5.92	%		Dec-2037		6,710		6,714		6,546
		MA Housing Finance Agency		6.58	%		Dec-2039		11,385		11,385		11,537
Total State Housing Finance Agency Securities								$	37,505	$	37,509	$	37,490

13

AFL-CIO HOUSING INVESTMENT TRUST

Schedule of Portfolio Investments
June 30, 2007 (Dollars in thousands; unaudited)

Other Multifamily Investments (1.4% of net assets)

Permanent	Construction		Maturity Date		Commitment Amount		Face Amount		Amortized Cost			Value
Multifamily Construction/Permanent Mortgages
7.63%		N/A		Jan-2011	$	813	$	315	$	315		$	319
8.63%		N/A		Apr-2025		1,469		1,255		1,254			1,255
9.50%		N/A		Apr-2024		760		668		668			668
9.75%		N/A		Nov-2018		1,524		1,129		1,129			1,129
						4,566		3,367		3,366			3,371
Privately Insured Construction/Permanent Mortgages5
5.40%		N/A		Apr-2047		9,000		8,984		8,993			8,363
5.55%		5.55%		May-2021		12,006		10,837		10,839			10,335
5.55%		5.55%		Jan-2047		12,809		12,772		12,774			11,794
5.73%		N/A		Aug-2047		5,575		5,575		5,581			5,307
5.95%		5.95%		Mar-2044		4,400		4,309		4,322			4,230
6.15%		6.15%		Mar-2045		1,600		1,578		1,584			1,570
6.20%		6.20%		Mar-2047		5,200		5,193		5,219			5,119
6.20%		N/A		Dec-2047		2,899		50		50			(33	)
						53,489		49,298		49,362			46,685
Forward Commitments1,5
6.07%		N/A		May-2048		1,000		—		(3	)		(34	)
6.60%		N/A		Sep-2049		3,514		—		—			18
						4,514		—		(3	)		(16	)
Total Other Multifamily Investments					$	62,569	$	52,665	$	52,725		$	50,040
Total Long-Term Investments							$	3,624,523	$	3,635,224		$	3,569,550

14

SEMI-ANNUAL REPORT JUNE 2007

Schedule of Portfolio Investments
June 30, 2007 (Dollars in thousands; unaudited)

Short-term investments (1.2% of net assets)

Description	Maturity Date		Interest Rate			Face Amount		Amortized Cost		Value
Short-term - Cash Equivalents6
Repurchase Agreement
Amalgamated Bank7		July 5, 2007		4.95	%	$	2,000	$	2,000	$	2,000
							2,000		2,000		2,000
Commercial Paper8
Greenwich Capital		July 2, 2007		5.34	%		20,000		19,997		19,997
UBS Finance (DE)		July 2, 2007		5.35	%		20,000		19,997		19,997
							40,000		39,994		39,994
Total Short-Term Investments						$	42,000	$	41,994	$	41,994
Total Investments						$	3,666,523	$	3,677,218	$	3,611,544

1	Multifamily MBS securities and forward commitments are valued in accordance with the fair value procedures adopted by the Trust’s Board of Trustees.
2	Construction interest rates are the rates charged to the borrower during the construction phase of the project. The permanent interest rates are charged to the borrower during the amortization period of the loan, unless HUD requires that such rates be charged earlier.
3	Tax-exempt bonds collateralized by Ginnie Mae Securities.
4	During construction this investment is a 100% participation interest in a construction loan enhanced by a letter of credit issued by PNC Bank, N.A. in favor of the Trust. The interest rate during construction is a floating rate equal to LIBOR plus 150 basis points for the related monthly period up to a maximum rate of 5.80%. At stabilization, the Trust will take delivery of a Fannie Mae MBS with an interest rate of 5.80% and a term of ten years.
5	Loans insured by Ambac Assurance Corporation.
6	Short-term investments with remaining maturities of sixty days or less.
7	This instrument was purchased in June 2007. The Trust will receive $2,008,408 upon maturity. The underlying collateral for the repurchase agreement is a Ginnie Mae security with a market value of $2,021,380.
8	Interest rate shown above is yield calculated based on purchase price.

See accompanying Notes to Financial Statements.

15

AFL-CIO HOUSING INVESTMENT TRUST

Statement Of Operations
For the Six Months Ended June 30, 2007 (Dollars in thousands; unaudited)

Investment Income
	FHA permanent securities*	$	4,683
	FHA construction securities*		484
	Ginnie Mae securities*		26,703
	Ginnie Mae construction securities*		4,601
	Freddie Mac securities		14,094
	Fannie Mae securities*		35,691
	Commercial mortgage-backed securities		4,163
	Government-sponsored enterprise securities		1,319
	United States Treasury securities		2,251
	State Housing Finance Agency securities		351
	Other multifamily investments*		2,152
	Short-term investments		2,277
	Total Income		98,769
Expenses
	Officer salaries and fringe benefits		1,494
	Other salaries and fringe benefits		3,787
	Legal fees		190
	Consulting fees		159
	Auditing, tax and accounting fees		158
	Insurance		162
	Marketing and sales promotion (12b-1 fees)		151
	Investment management		325
	Trustee expenses		24
	Rental expenses		437
	General expenses		843
	Total Expenses		7,730
Net Investment Income			91,039
	Net realized gain on investments		486
	Net change in unrealized depreciation on investments		(69,616	)
Realized and Unrealized Net Losses on Investments			(69,130	)
Net Increase in Net Assets Resulting from Operations		$	21,909

*	Includes forward commitments.
	See accompanying Notes to Financial Statements.

16

SEMI-ANNUAL REPORT JUNE 2007

Statements of Changes in Net Assets
(Dollars in thousands)

Increase in Net Assets From Operations	Six Months Ended June 30, 2007 (unaudited )			Year Ended December 31, 2006
Net investment income	$	91,039		$	176,908
Net realized gain/(loss) on investments		486			(8,583	)
Net change in unrealized depreciation on investments		(69,616	)		(5,936	)
Net increase in net assets resulting from operations		21,909			162,389
Decrease in Net Assets From Distributions
Distributions paid to participants from:
Net investment income		(92,012	)		(180,525	)
Net decrease in net assets from distributions		(92,012	)		(180,525	)
Increase in Net Assets From Unit Transactions
Proceeds from the sale of units of participation		157,026			180,432
Dividend reinvestment of units of participation		79,677			154,997
Payments for redemption of units of participation		(225,742	)		(288,489	)
Net increase from unit transactions		10,961			46,940
Total (decrease)/increase in net assets		(59,142	)		28,804
Net assets at beginning of period		3,605,679			3,576,875
Net Assets at End of Period	$	3,546,537		$	3,605,679
Undistributed Net Investment Income	$	2,077		$	3,050
Unit Information
Units sold		145,373			167,870
Distributions reinvested		74,012			144,192
Units redeemed		(209,987	)		(268,076	)
Increase in Units Outstanding		9,398			43,986

See accompanying Notes to Financial Statements.

17

AFL-CIO HOUSING INVESTMENT TRUST

Notes to Financial Statements
(unaudited)

Note 1. Summary of Significant Accounting Policies

The American Federation of Labor and Congress of Industrial Organizations (AFL-CIO) Housing Investment Trust (the Trust) is a common law trust created under the laws of the District of Columbia and is a no-load, open-end investment company registered under the Investment Company Act of 1940. The Trust has obtained certain exemptions from the requirements of the Investment Company Act of 1940 that are described in the Trust’s Statement of Additional Information and Prospectus.

Participation in the Trust is limited to eligible labor organizations and pension, welfare and retirement plans that have beneficiaries who are represented by labor organizations.

The following is a summary of significant accounting policies followed by the Trust in the preparation of its financial statements. The policies are in conformity with accounting principles generally accepted in the United States.

Investment Valuation

Net asset value per share (NAV) is calculated as of the close of business of the major bond markets in New York City on the last business day of the month.

Portfolio securities for which market quotations are readily available (single family mortgage-backed securities, commercial mortgage-backed securities, Government-Sponsored Enterprise securities, and U.S. Treasury securities) are valued by an independent pricing service, published prices, market quotes and dealer bids.

Portfolio investments for which market quotations are not readily available (multifamily mortgage-backed securities, mortgage securities, and construction mortgage securities and loans) are valued at their fair value determined in good faith under consistently applied procedures adopted by the Board of Trustees using dealer bids and discounted cash flow models. The respective cash flow models use market-based discount and prepayment rates developed for each investment category. The market-based discount rate is composed of a risk-free yield (i.e., a U.S. Treasury note) adjusted for an appropriate risk premium. The risk premium reflects actual premiums in the market place over the yield on U.S. Treasury securities of comparable risk and maturity to the security being valued as adjusted for other market considerations. On investments for which the Trust finances the construction and permanent securities or participation interests, value is determined based upon the total amount, funded and/or unfunded, of the commitment. The Trust has retained an independent firm to determine the fair market value of such securities. In accordance with the procedures adopted by the Board, the monthly third-party valuation is reviewed by the Trust staff to determine whether valuation adjustments are appropriate based on any material impairments in value arising from specific facts and circumstances of the investment (e.g., mortgage defaults). All such adjustments must be reviewed and approved by the independent valuation firm prior to incorporation in the NAV.

Short-term investments with remaining maturities of sixty days or less are valued on the basis of amortized cost, which approximates fair value. Cash and cash equivalents include overnight money market funds which are also carried at cost.

In September 2006, the Financial Accounting Standards Board (FASB) issued FASB Statement No. 157, Fair Value Measurements (“Statement 157”). Statement 157 establishes a framework for measuring fair value within generally accepted accounting principles, clarifies the definition of fair value within the framework, and expands disclosure about the use of fair value measurements, highlighting that fair value is a market-based measurement. Statement 157 is intended to increase consistency and comparability among fair value estimates used in financial reporting. Statement 157 is effective for fiscal years beginning after November 15, 2007. Management does not expect the adoption of Statement 157 to have an impact on the Trust’s financial statement disclosures.

18

SEMI-ANNUAL REPORT JUNE 2007

Notes to Financial Statements
(unaudited)

Use of Estimates

The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenses during the period. Actual results could differ from those estimates.

Federal Income Taxes

The Trust’s policy is to comply with the requirements of the Internal Revenue Code that are applicable to regulated investment companies and to distribute all of its taxable income to its participants. Therefore, no federal income tax provision is required.

Effective June 30, 2007, the Trust adopted FASB Interpretation No. 48 “Accounting for Uncertainty in Income Taxes” (“FIN 48”). FIN 48 provides guidance for how uncertain tax positions should be recognized, measured, presented, and disclosed in the financial statements. FIN 48 requires the evaluation of tax positions taken or expected to be taken in the course of preparing the fund’s tax returns to determine whether the tax positions are “more-likely-than-not” of being sustained by the applicable tax authority. Tax positions not deemed to meet the more-likely-than-not threshold are recorded as a tax benefit or expense in the current year. Management determined that the tax positions taken by the Trust are highly certain to be more-likely-than-not sustained by the applicable tax authority. The adoption of FIN 48 did not result in the recording of any tax benefit or expense in the current period.

Distributions to Participants

At the end of each calendar month, a pro rata distribution is made to participants of the net investment income earned during the month. This pro-rata distribution is based on the participant’s number of units held as of the immediately preceding month-end and excludes realized gains (losses) on paydowns of mortgage-and asset-backed securities which are distributed at year-end.

Participants redeeming their investments are paid their pro rata share of undistributed net income accrued through the month-end of the month in which they redeem.

The Trust offers an income reinvestment plan that permits current participants automatically to reinvest their income distributions into Trust units of participation. Total reinvestment was approximately 87 percent of distributable income for the six months ended June 30, 2007.

Investment Transactions and Income

Security transactions are accounted for as of the trade date. Gains and losses on securities sold are determined on the basis of amortized cost. Realized gains (losses) on paydowns of mortgage- and asset-backed securities are classified as interest income. Interest income, which includes amortization of premium and accretion of discount on debt securities, is accrued as earned.

12b-1 Plan of Distribution

The Board of Trustees annually considers a 12b-1 Plan of Distribution to pay for marketing and sales promotion expenses incurred in connection with the offer and sale of units and related distribution activities (12b-1 expenses). For the year 2007, the Trust is authorized to pay 12b-1 expenses in an amount up to $600,000 or 0.05 percent of its average monthly net assets on an annualized basis, whichever is greater. During the six months ended June 30, 2007, the Trust incurred approximately $151,000 of 12b-l expenses.

19

AFL-CIO HOUSING INVESTMENT TRUST

Notes to Financial Statements
(unaudited)

Note 2. Investment Risks

Interest Rate Risk

As with any fixed-income investment, the market value of the Trust’s investments will fall below the principal amount of those investments at times when market interest rates rise above the interest rates of the investments. Rising interest rates may also reduce prepayment rates, causing the average life of the Trust’s investments to increase. This could in turn further reduce the value of the Trust’s portfolio.

Prepayment and Extension Risk

The Trust invests in certain fixed-income securities whose value is derived from an underlying pool of mortgage loans that are subject to prepayment and extension risk.

Prepayment risk is the risk that a security will pay earlier than its assumed payment rate, shortening its expected average life, resulting in a lower return from the security. In such an event, the Trust may be required to reinvest the proceeds of such prepayments in other investments bearing lower interest rates. The majority of the Trust’s securities backed by loans for multifamily projects include restrictions on prepayments for specified periods to mitigate this risk.

Extension risk is the risk that a security will pay more slowly than its assumed payment rate, extending its expected average life, resulting in a lower return from the security. When this occurs, the ability to reinvest principal repayments in higher returning investments may be limited.

These two risks may increase the sensitivity of the Trust’s portfolio to fluctuations in interest rates and change the value of the Trust’s portfolio.

Note 3. Transactions With Related Entities

During the six months ended June 30, 2007, the Trust provided the time of certain personnel to the AFL-CIO Investment Trust Corporation (ITC), a D.C. not-for-profit corporation, on a cost-reimbursement basis. During the year, an employee of the Trust also served as an officer of the ITC. The total cost for such personnel and related expenses for the six months ended June 30, 2007, amounted to approximately $141,000. During the six months ended June 30, 2007, the Trust was reimbursed for approximately $114,000 of current year costs. As of June 30, 2007, approximately $27,000, representing a current balance, is included within the accounts receivable in the accompanying financial statements for amounts outstanding under the arrangement.

The ITC provided the time of certain personnel to the Trust on a cost-reimbursement basis. The total cost for such personnel and related expenses for the six months ended June 30, 2007, was approximately $22,000. During the six months ended June 30, 2007, the Trust paid the ITC approximately $19,000 of current costs.

Note 4. Commitments

Certain assets of the Trust are invested in short-term investments until they are required to fund purchase commitments for long-term investments. As of June 30, 2007, the Trust had outstanding unfunded purchase commitments of approximately $83.7 million. The Trust maintains a reserve, in the form of securities, of no less than the total of the outstanding unfunded purchase commitments, less short-term investments. As of June 30, 2007, the value of the publicly traded mortgage-backed securities maintained for the reserve in a segregated account was approximately $3.26 billion.

The commitment amounts disclosed on the Schedule of Portfolio Investments represent the original commitment amount, which includes both funded and unfunded commitments.

20

SEMI-ANNUAL REPORT JUNE 2006

Notes to Financial Statements
(unaudited)

Note 5. Investment Transactions

A summary of investment transactions (excluding short-term investments and U.S. Treasury securities) for the separate instruments included in the Trust’s investment portfolio, at amortized cost, for the six months ended June 30, 2007, follows (dollars in thousands):

	FHA Permanent Securities*			FHA Construction Securities*				Ginnie Mae Securities*			Ginnie Mae Construction Securities*				Freddie Mac Securities			Fannie Mae Securities*			Commercial Mortgage- Backed Securities			Government- Sponsored Entities Securities				State Housing Finance Agency Securities			Other Multifamily Investments*
Balance, January 1, 2007	$	147,139			$	17,014		$	1,036,685			$	204,647		$	507,411		$	1,273,171		$	220,285			$	45,233			$	11,824		$	113,221
Purchases and insured construction securities advances, net of discounts		0				0			120,941				13,126			147,911			206,060			248,500				0				25,685			1,309
Change in discounts and (premiums)		61				0			(1,149	)			(1,246	)		(4,429	)		(2,043	)		(1,603	)			1,070				0			(75	)
Transfers		(8,100	)			0			69,273				(61,173	)		0			0			0				0				0			0
Principal reductions/ Sales		(8,995	)			(14	)		(198,456	)			(46,159	)		(86,133	)		(106,878	)		(230,000	)			(1,098	)			0			(61,730	)
Balance, June 30, 2007	$	130,105			$	17,000		$	1,027,294			$	109,195		$	564,760		$	1,370,310		$	237,182			$	45,205			$	37,509		$	52,725

* Includes forward commitments.

Note 6. Federal Taxes

No provision for federal income taxes is required since the Trust intends to continue to qualify as a regulated investment company under Subchapter M of the Internal Revenue Code and distribute to shareholders all of its taxable income and gains. Federal income tax regulations differ from generally accepted accounting principles; therefore, distributions determined in accordance with tax regulations may differ in amount or character from net investment income and realized gains for financial reporting purposes. Financial reporting records are adjusted for permanent book/tax differences to reflect tax character. Financial records are not adjusted for temporary differences. The amount and character of tax-basis distributions and composition of net assets are finalized at fiscal year-end; accordingly, tax-basis balances have not been determined as of June 30, 2007.

At June 30, 2007, the cost of investments for federal income tax purposes approximated book cost at amortized cost of $3,677.2 million. Net unrealized loss aggregated $65.7 million at period-end, of which $23.6 million related to appreciated investments and $89.3 million related to depreciated investments.

21

AFL-CIO HOUSING INVESTMENT TRUST

Notes to Financial Statements
(unaudited)

Note 7. Retirement and Deferred Compensation Plans

The Trust participates in the AFL-CIO Staff Retirement Plan, which is a multiple employer defined benefit pension plan, covering substantially all employees. This plan was funded by employer contributions, at rates approximating 21.00% percent of employees’ salaries for the six months ended June 30, 2007. The total Trust pension expense for the six months ended June 30, 2007, was approximately $618,000.

The Trust also participates in a deferred compensation plan, referred to as a 401(k) plan, covering substantially all employees. This plan permits employees to defer the lesser of 100 percent of their total compensation or the applicable IRS limit. During 2007, the Trust is matching dollar for dollar the first $4,000 of each employee’s contributions. The Trust’s 401(k) contribution for the six months ended June 30, 2007, was approximately $165,000.

Note 8. Loan Facility

The Trust has a $25 million uncommitted loan facility which expires on December 31, 2007. Borrowings under this facility bear interest at LIBOR plus one-half percent plus a 12.5 basis point administrative fee charged for each advance. The Trust had no outstanding balance under the facility during the period. No compensating balances are required.

Note 9. Contract Obligations

In the ordinary course of business, the Trust enters into contracts that contain a variety of indemnifications. The Trust’s maximum exposure under these arrangements is unknown. However, the Trust has not had prior claims or losses pursuant to these contracts and expects the risk of loss to be remote.

22

SEMI-ANNUAL REPORT JUNE 2007

Financial Highlights
Selected Per Share Data and Ratios for the Periods Indicated

	6 Months Ended June 30, 2007 (unaudited )				Year Ended December 31
					2006			2005			2004			2003			2002
Per Share Data
Net asset value, beginning of period		$	1,081.27		$	1,086.97		$	1,110.61		$	1,125.21		$	1,152.30		$	1,098.40
Income from investment operations:
Net investment income			26.93			53.55			50.08			48.63			54.26			65.19
Net realized and unrealized (losses) gains on investments			(20.43	)		(4.60	)		(21.25	)		(2.38	)		(11.69	)		59.15
Total Income from Investment Operations			6.50			48.95			28.83			46.25			42.57			124.34
Less distributions from:
Net investment income			(27.23	)		(54.65	)		(52.47	)		(49.10	)		(54.26	)		(65.19	)
Net realized gains on investments			—			—			—			(11.75	)		(15.40	)		(5.25	)
Total Distributions			(27.23	)		(54.65	)		(52.47	)		(60.85	)		(69.66	)		(70.44	)
Net Asset Value, End of Period		$	1,060.54		$	1,081.27		$	1,086.97		$	1,110.61		$	1,125.21		$	1,152.30
Ratios
Ratio of expenses to average net assets			0.43	%*		0.41	%		0.37	%		0.37	%		0.37	%		0.36	%
Ratio of net investment income to avearage net assets			5.0	%*		5.0	%		4.5	%		4.4	%		4.7	%		5.8	%
Portfolio turnover rate			54.4	%*		65.0	%		68.4	%		85.5	%		73.1	%		64.3	%
Number of Outstanding Units at End of Period			3,344,082			3,334,684			3,290,698			3,300,858			3,206,626			2,848,002
Net Assets, End of Period (in thousands)		$	3,546,537		$	3,605,679		$	3,576,875		$	3,665,950		$	3,608,139		$	3,281,763
Total Return**			0.59	%		4.65	%		2.64	%		4.20	%		3.78	%		11.64	%

  * Ratios are annualized.

** Net of fund expenses.

    See accompanying Notes to Financial Statements.

23

AFL-CIO HOUSING INVESTMENT TRUST

Other Important Information

Availability of Quarterly Portfolio Schedule

In addition to disclosure in the Annual and Semi-annual Report to Participants, the HIT also files its complete schedule of portfolio holdings with the Securities and Exchange Commission (“SEC”) for the first and third quarters of each fiscal year on Form N-Q. The HIT’s reports on Form N-Q are made available on the SEC’s website at http://www.sec.gov and may be reviewed and copied at the SEC’s Public Reference Room in Washington, D.C. (information relating to the hours and operation of the SEC’s Public Reference Room may be obtained by calling 1-800-SEC-0330). Participants may also obtain copies of the HIT’s Form N-Q reports, without charge, upon request, by calling the HIT collect at 202-331-8055.

Proxy Voting

The HIT invests exclusively in non-voting securities and has not deemed it necessary to adopt policies and procedures for the voting of portfolio securities. During the most recent twelve-month period ended June 30, the HIT held no voting securities in its portfolio and has reported this information in its most recent filing with the SEC on Form N-PX. This filing is available on the SEC’s website at http://www.sec.gov. Participants may also obtain a copy of the HIT’s report on Form N-PX, without charge, upon request, by calling the HIT collect at 202-331-8055.

Expense Example

Participants in the HIT incur ongoing expenses related to the management and distribution activities of the HIT, as well as certain other expenses. This example is intended to help participants understand the ongoing costs (in dollars) of investing in the HIT and to compare these costs with the ongoing costs of investing in other mutual funds. The example is based on an investment of $50,000 invested at the beginning of the period January 1, 2007, and held for the entire period ended June 30, 2007.

Actual Expenses: The first line of the table below provides information about actual account values and actual expenses. Participants may use the information in this line, together with the amount they invested, to estimate the expenses that they paid over the period. Simply divide the account value by $50,000 (for example, an $800,000 account value divided by $50,000 = 16), then multiply the result by the number in the first line under the heading entitled “Expenses Paid During Period” to estimate the expenses paid on a particular account during this period.

Hypothetical Expenses (for Comparison Purposes Only): The second line of the table below provides information about hypothetical account values and hypothetical expenses based on the HIT’s actual expense ratio and an assumed rate of return of 5% per year before expenses, which is not the HIT’s actual return. The hypothetical account values and expenses may not be used to estimate the actual ending account balance or expenses a participant paid for the period. Participants may use this information to compare the ongoing costs of investing in the HIT and other mutual funds. To do so, compare this 5% hypothetical example with the 5% hypothetical examples that appear in the shareholder reports of the other mutual funds.

Please note that the HIT charges no transactional costs, such as sales charges (loads) or redemption fees.

	Beginning Account Value January 1, 2007	Ending Account Value June 30, 2007	Expenses Paid During Period Ended June 30, 2007*
Actual expenses	$50,000	$50,297.22	$106.96
Hypothetical expenses (5% return before expenses)	$50,000	$51,133.11	$107.85

* Expenses are equal to the HIT’s annualized expense ratio of 0.43%, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

24

SEMI-ANNUAL REPORT JUNE 2007

Other Important Information

Investment Advisory Agreement

On April 24, 2007, the Board of Trustees met in person and after consideration of the factors described below, decided not to renew the Investment Advisory Agreement (“Advisory Agreement”) between the HIT and Wellington Management Company, LLP (“Wellington”). Unlike most other mutual funds, the HIT’s portfolio is internally managed, except for a portion of its short-term cash managed by Wellington, which the HIT has historically managed to be less than two percent of its assets at the end of each quarter. Although the HIT’s relationship with Wellington has been both amicable and satisfactory, the Board of Trustees determined that continued retention of Wellington was no longer in the best interests of the HIT and its participants.

In evaluating the Advisory Agreement, the Board of Trustees considered a variety of information relating to the HIT and Wellington including materials which outlined the requirements of the Investment Company Act with respect to consideration of investment advisory agreements and requested and received the advice of the HIT’s outside counsel. The Trustees considered the following factors, among other things: the nature, extent and quality of the services provided by Wellington; the investment performance of the assets managed by Wellington; and the cost of services to be provided by Wellington.

Nature, Extent and Quality of the Services under the Advisory Agreement: The Trustees noted that they were satisfied with the nature, extent and quality of services provided to the HIT under the Advisory Agreement. However, since 2000, the HIT had placed on average only $30 million in cash with Wellington each quarter. During this time, the HIT had been working steadily to develop internal capacity within its Portfolio Management Group and has achieved a greater level of internal capacity for cash management. The Board concluded that this additional trading capacity weakens the rationale for retaining Wellington as an investment adviser, because in-house staff is now able to handle the cash management function. In addition, as part of its ongoing improvement of infrastructure, HIT staff now has the capacity to trade from locations outside of the office.

Investment Performance: Under the contract with Wellington, Wellington was required to invest in commercial paper rated as A-1/P-1 by Standard & Poor’s or Moody’s. This is the same credit rating threshold that is used internally by HIT staff for selection of commercial paper. Yield spreads in this highly liquid asset class are very tight, with typical deviations of 1 to 2 basis points. In evaluating the cost of services provided by Wellington, Trustees noted that the HIT must pay a fee of 12.5 basis points when sending money to Wellington, and the nature of the asset class is such that Wellington was not able to earn this back in excess yield for the HIT by the securities it purchased.

Cost of Services Provided: Since 2000, the HIT has paid Wellington the minimum amount payable under the contract – $50,000 per year – for all but the 2003-04 contract year, where the payment was approximately $63,000. Although not a significant expense, Trustees noted that not renewing the contract would permit the HIT to recognize this savings.

Conclusion: Based on the Trustees’ deliberations and their evaluation of the information described above, the Trustees concluded it would be in the best interest of the HIT and its participants not to approve a renewal of the Advisory Agreement.

25

AFL-CIO Housing Investment Trust
2401 Pennsylvania Avenue, N.W.
Suite 200
Washington, DC 20037
202-331-8055
www.aflcio-hit.com
bug

Item 2. Code of Ethics.

Not applicable for semi-annual reports.

Item 3. Audit Committee Financial Expert.

Not applicable for semi-annual reports.

Item 4. Principal Accountant Fees and Services.

Not applicable for semi-annual reports.

Item 5. Audit Committee of Listed Registrants.

Not Applicable.

Item 6. Schedule of Investments.

Not Applicable

Item 7. Disclosure of Proxy Voting Policies and Procedures for Closed-End Management Investment Companies.

Not Applicable.

Item 8. Portfolio Managers of Closed-End Management Investment Companies.

Not Applicable.

Item 9. Purchases of Equity Securities by Closed-End Management Investment Company and Affiliated Purchasers.

Not Applicable.

Item 10. Submission of Matters to a Vote of Security Holders.

No material changes have been made to the procedures by which participants may recommend nominees to the Board of Trustees of the Trust, where those changes were implemented after the Trust last provided disclosure in response to the requirements of Item 7(d)(2)(ii)(G) of Schedule 14A (17 CFR 240.14a-101) or this Item 10.

Item 11. Controls and Procedures.

(a) The Trust’s Chief Executive Officer (the principal executive officer) and Chief Financial Officer (the principal financial officer) have concluded that the Trust’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c)), are effective to ensure that material information relating to the Trust is made known to them by appropriate persons, based on their evaluation of such controls and procedures as of June 30, 2007.

(b) There was no change in the Trust’s internal control over financial reporting (as defined in Rule 30a-3(d) under the Act (17 CFR 270.30a-3(d)) that occurred during the Trust’s second fiscal quarter that has materially affected, or is reasonably likely to materially affect, the Trust’s internal control over financial reporting.

Item 12. Exhibits.

(a)	(1)	Not Applicable.
	(2)	A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(a) under the Act (17 CFR 270.30a-2(a)).
	(3)	Not Applicable.
(b)	A separate certification for each principal executive officer and principal financial officer of the registrant as required by Rule 30a-2(b) under the Act of 1940.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the AFL-CIO Housing Investment Trust has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

AFL-CIO HOUSING INVESTMENT TRUST

By:	/s/ Stephen Coyle
	Name: Stephen Coyle
	Title: Chief Executive Officer

Date: September 10, 2007

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, this report has been signed below by the following persons on behalf of the AFL-CIO Housing Investment Trust and in the capacities and on the dates indicated.

/s/ Stephen Coyle

Stephen Coyle

Chief Executive Officer

(Principal Executive Officer)

Date: September 10, 2007

/s/ Erica Khatchadourian

Erica Khatchadourian

Chief Financial Officer

(Principal Financial Officer)

Date: September 5, 2007

EX-99.906CERT

Ex 99.906cert

Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

AFL-CIO Housing Investment Trust

In connection with the Report on Form N-CSR of the AFL-CIO Housing Investment Trust that is accompanied by this certification, the undersigned hereby certifies that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Trust.

Dated:	September 10, 2007
	/s/ Stephen Coyle
	Stephen Coyle,
	Chief Executive Officer
	AFL-CIO Housing Investment Trust

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the AFL-CIO Housing Investment Trust and will be retained by the AFL-CIO Housing Investment Trust and furnished to the Securities and Exchange Commission or its staff upon request.

Certification Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

AFL-CIO Housing Investment Trust

In connection with the Report on Form N-CSR of the AFL-CIO Housing Investment Trust that is accompanied by this certification, the undersigned hereby certifies that:

1. The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

2. The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Trust.

Dated:	September 5, 2007
	/s/ Erica Khatchadourian
	Erica Khatchadourian,
	Chief Financial Officer
	AFL-CIO Housing Investment Trust

A signed original of this written statement required by Section 906, or other document authenticating, acknowledging, or otherwise adopting the signature that appears in typed form within the electronic version of this written statement required by Section 906, has been provided to the AFL-CIO Housing Investment Trust and will be retained by the AFL-CIO Housing Investment Trust and furnished to the Securities and Exchange Commission or its staff upon request