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

American Federation of Labor –

Congress of Industrial Organizations

Housing Investment Trust

(Exact name of registrant as specified in charter)

2401 Pennsylvania Avenue, N.W., Suite 200

Washington, DC 20037

(Address of principal executive offices) (Zip code)

Kenneth G. Lore, Esq.

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, 2009 through June 30, 2009

Item 1.Report to Stockholders.

The following is a copy of the 2009 Semi-Annual 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”).

SEMI-ANNUAL REPORT JUNE 30, 2009

AFL-CIO HOUSING INVESTMENT TRUST

COMPETITIVE RETURNS      UNION JOBS      AFFORDABLE HOUSING

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Mid-Year Discussion of Fund Performance

Figure 1.

HIT Performance vs. Barclays Capital Aggregate Bond Index as of June 30, 2009

Figure 2.

Comparison of $50,000 Investment in HIT and Barclays Capital Aggregate Bond Index

          Past performance is no guarantee of future results. Economic and market conditions change, and both will cause investment return, principal value, and yield to fluctuate so that a participant’s units when redeemed may be worth more or less than their original cost. Current performance may be lower or higher than the performance data quoted. Performance data current to the most recent month-end is available at www.aflcio-hit.com.

          Gross performance figures do not reflect the deduction of HIT expenses. Information about these expenses can be found on page 4 of this report and page 6 of the HIT’s current prospectus. The Barclays Capital Aggregate Bond Index is an unmanaged index and is not available for direct investment, although certain funds attempt to replicate this index. Returns for the index would be lower if they reflected the actual trading costs or expenses associated with management of an actual portfolio.

Competitive Returns

During the first six months of 2009, the AFL-CIO Housing Investment Trust (HIT) navigated the heightened risks in the marketplace to deliver strong returns while creating union jobs and affordable housing during a severe recession. Investors were well-served by the HIT’s prudent investment philosophy and expertise in multifamily finance, and they expressed their confidence by investing more than $186 million in the HIT during the six-month period. This record demonstrates that the HIT works, and it will strive to continue to work for its investors with competitive returns and much-needed job creation in the period ahead. The government-insured multifamily construction securities in which the HIT specializes are projected to be a source of superior risk-adjusted returns in the period ahead, and the HIT is positioned to take advantage of these opportunities.

The HIT beat its benchmark, the Barclays Capital Aggregate Bond Index, by 179 basis points on a gross basis and 156 basis points on a net basis in the six-month period ended June 30, 2009. This outperformance was largely attributable to the HIT’s strategy of focusing on investments in multifamily mortgage-backed securities (MBS) that are insured or guaranteed by a U.S. government agency or a government-sponsored enterprise (GSE), as these securities benefited from significant spread¹ tightening during the period. The HIT’s one-year return at June 30 was 8.35% gross and 7.89% net, compared to 6.05% for the benchmark. The HIT achieved this favorable showing versus the benchmark despite a strong recovery in the second quarter by corporate bonds, which comprised nearly 19% of the benchmark at June 30 but are not held by the HIT portfolio. Morningstar ranked the HIT as one of the nation’s Top 10 Managers for the one- and five-year periods ended March 31 in the fixed-income category of U.S. intermediate duration collective trusts.²

With its focus on high credit quality multifamily securities, the HIT’s fixed-income investments provided desirable diversification for pension plan portfolios. The performance of these multifamily securities is less correlated with equities than is the performance of corporate bonds. Since the beginning of 2007, for example, the HIT has shown only a 21% correlation with the Standard & Poor’s 500 Index, while corporate bonds, as reflected by the corporate sector of the Barclays Aggregate, showed a 51% correlation.

Portfolio Strategy

The HIT continued to seek to preserve and grow its investors’ capital by adhering to its principles of high credit quality investing. The HIT has never engaged in risky

¹ Spread is the difference in yield between Treasuries and comparable non-Treasury securities.

² Ranking was based on gross returns self-reported to Morningstar’s Principia Separate Account database, which reflect no deduction for expenses. The ranking compared fixed-income investment vehicles with a similar risk profile, comprising funds in Morningstar’s Intermediate Government Bond and Intermediate-Term Bond categories. This included 49 funds for the one-year period and 41 funds for the five-year period. The Morningstar ranking appeared in Pensions & Investments on May 4, 2009, and can be viewed at http://www.pionline.com/article/20090504/CHART/305049946/-1/TOPPERFORMINGMANAGERS.

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	Mid-Year Discussion of Fund Performance

Figure 3.

One-Year Returns Through June 30, 2009

*Hennessee Hedge Fund Index contains performance data net of fees for representative sample of 3,500 self-reporting hedge funds.

Source: Haver Analytics and the HIT

Figure 4.

U.S. Treasury Yield Curve

Source: Bloomberg L.P.

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investment strategies involving derivatives, leverage through borrowing or subprime mortgages. The portfolio strategy helped make the first half of 2009 a positive period for HIT investors. The HIT’s returns during this period benefited greatly from its strategy of investing in government and agency credit quality securities, which performed well. Nearly 96% of the HIT portfolio at June 30 consisted of high credit quality securities, including MBS that are insured or guaranteed by a U.S. government agency or a GSE, U.S. Treasuries and GSE debt. This compares to 74.5% in the benchmark.

Market Environment

The year began with the credit and equity markets performing poorly due to fears of systemic market failure. In the second quarter, optimism grew, as equity and credit markets experienced a significant recovery. Despite some signs of improvement in the economy, employment is expected to remain weak for the foreseeable future, prompting some economists to envision a jobless recovery. Construction employment has been particularly hard hit, with nearly one million construction jobs lost in the U.S. economy in the 12 months ending June 30. The formidable job losses in construction make HIT-financed housing projects a particularly attractive stimulus for local communities.

Given the uncertain state of the economy in the first half of the year, the Federal Reserve had not indicated the need to raise short-term interest rates in the near future. This resulted in a historically steep yield curve, as yields on 10-year U.S. Treasuries rose significantly in the first half of the year due to increased federal government borrowing, and the short end of the yield curve increased very little. The HIT has managed the portfolio’s duration to be slightly short relative to its benchmark, which helped its relative performance during the six-month period.

HIT Portfolio Distribution

Based on value of total investments, including unfunded commitments, as of June 30, 2009.

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Mid-Year Discussion of Fund Performance

Multifamily Investments

The HIT’s specialization in government and agency multifamily MBS is expected to continue to serve its investors well in the period ahead. Spreads on construction MBS, in particular, remain at historic levels, making them highly attractive to the HIT portfolio. The HIT is actively sourcing new production to help meet the needs of the portfolio while generating affordable housing and union construction jobs. At mid-year, construction was underway at 13 HIT-financed projects in 10 cities, which are generating an estimated 4.2 million hours of employment for union workers in the building trades.

As of June 30, the HIT had established a pipeline of nearly $1 billion of multifamily projects for potential investment. The HIT has issued commitments of $39.1 million for three of these projects representing over $82 million of total development costs. These newest investments should create or preserve 276 multifamily units and generate an estimated 500 new jobs for union construction workers. The HIT also submitted preliminary financing proposals for four projects representing more than $470 million of total development and issued letters of interest on seven additional projects.

The growing role of the Federal Housing Administration (FHA) in the multifamily market is favorable to the HIT. Developers unable to obtain capital from commercial lenders have turned increasingly to the FHA’s financing

programs, helping the FHA to regain some of the multifamily market share that it lost over the past two decades. This has created a prime opportunity for the HIT. With over 40 years of experience in financing FHA projects, the HIT is working with its network of developers and mortgage bankers to structure financing for their projects. Of the projects in the HIT’s investment pipeline at June 30, 65% would be FHA-insured. The relatively wide yield spreads for construction securities make investments in these FHA new construction projects particularly attractive for the HIT portfolio.

Outlook

The HIT was able to grow its assets in the first half of 2009, a time when many funds lost value. This growth reflected gains on investments, more than $113 million in new capital from participants and $72 million in reinvested dividends, representing an 89% rate of dividend reinvestment. At the same time, developers have come to the HIT seeking capital and expertise to structure their multifamily transactions. Access to these potential projects, combined with continued asset growth, favorably positions the HIT for funding multifamily investments that meet its portfolio requirements while also generating needed housing and jobs. The HIT will strive to maintain investor confidence and increase its assets further in the period ahead by adhering to its strategy of investing responsibly in high credit quality multifamily securities.

Ellipse on Excelsior, St. Louis Park, MN		The Douglass, Harlem, NY
The HIT committed $26.1 million to the purchase		The HIT committed to the purchase of $9.5
	of a Ginnie Mae security for the development of this apartment project, designed as a gateway to the St. Louis		million of fixed-rate, tax-exempt bonds issued by the New York City Housing Development Corporation (HDC).
Park community. Upon completion, the project will consist of 132 market-rate units in a five-story building with commercial and retail space located on the first level.		Upon completion, the 70-unit project will be affordable to households earning no more than 60% of the area median income. The project is part of the HIT’s New York City Community Investment Initiative.
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  Other Important Information

Availability of Quarterly Portfolio Schedule

In addition to disclosure in the Annual and Semi-Annual Reports 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, 2009, 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 $1,000 invested at the beginning of the period, January 1, 2009, and held for the entire period ended June 30, 2009.

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 $1,000 (for example, an $800,000 account value divided by $1,000 = 800), 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, 2009	Ending Account Value June 30, 2009	Expenses Paid During Six-Month Period Ended June 30, 2009*
Actual expenses	$1,000.00	$1,034.60	$2.22
Hypothetical expenses (5% return before expenses)	$1,000.00	$1,022.61	$2.21

* Expenses are equal to the HIT’s annualized expense ratio of 0.44% as of June 30, 2009, multiplied by the average account value over the period, multiplied by 181/365 (to reflect the one-half year period).

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FINANCIAL STATEMENTS

JUNE 30, 2009

AFL-CIO

HOUSING INVESTMENT TRUST

A F L - C I O  H O U S I N G  I N V E S T M E N T  T R U S T

Statement of Assets and Liabilities

June 30, 2009 (Dollars in thousands; unaudited)

Assets
	Investments, at value (cost $3,446,338)	$	3,530,678
	Cash and cash equivalents		102,305
	Receivables for investments sold		19,716
	Accrued interest receivable		16,001
	Property and equipment (net of $1,338 of accumulated depreciation)		1,271
	Prepaid expenses and other assets		457
	Accounts receivable		87
	Total assets		3,670,515
Liabilities
	Payables for investments purchased		70,188
	Redemptions payable		26,675
	Accrued expenses		2,952
	Income distribution payable, net of dividends reinvested of $12,131		1,400
	Refundable deposits		751
	Total liabilities		101,966
Net assets applicable to participants’ equity
	Certificates of participation — authorized unlimited; Outstanding 3,214,149 units	$	3,568,549
Net asset value per unit of participation (in dollars)		$	1,110.26
Participants’ equity
	Participants’ equity consisted of the following:
	Amount invested and reinvested by current participants	$	3,501,060
	Net unrealized appreciation of investments		84,340
	Distribution in excess of net investment income		(2,945	)
	Accumulated net realized losses		(13,906	)
	Total participants’ equity	$	3,568,549

See accompanying Notes to Financial Statements.

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Schedule of Portfolio Investments

June 30, 2009 (Dollars in thousands; unaudited)

FHA Permanent Securities (3.8% of net assets)

	Interest Rate		Maturity Date	Commitment Amount		Face Amount		Amortized Cost		Value
Single Family	7.75	%	Jul-2021-Aug-2021	$		$	25	$	25	$	25
							25		25		25
Multifamily1	5.25	%	Mar-2024				4,642		4,653		4,641
	5.35	%	Mar-2047				7,912		7,923		7,676
	5.55	%	Aug-2042				8,774		8,775		8,612
	5.60	%	Jun-2038				2,788		2,789		2,873
	5.62	%	Jun-2014				516		514		528
	5.65	%	Oct-2038				2,146		2,206		2,178
	5.87	%	Jun-2044				1,929		1,928		1,926
	5.89	%	Apr-2038				5,234		5,251		5,244
	6.02	%	Jun-2035				6,422		6,415		6,612
	6.40	%	Jul-2046				4,046		4,046		4,184
	6.66	%	May-2040				5,625		5,618		5,675
	6.70	%	Dec-2042				5,902		5,893		6,202
	6.75	%	Feb-2039-Jul-2040				6,335		6,297		6,584
	6.88	%	Apr-2031				27,466		27,145		28,579
	7.00	%	Jun-2039				5,907		5,936		5,903
	7.05	%	Jul-2043				5,242		5,242		5,561
	7.13	%	Mar-2040				7,728		7,690		8,167
	7.20	%	Dec-2033-Oct-2039				9,776		9,759		10,389
	7.50	%	Sep-2032				1,567		1,563		1,684
	7.75	%	Oct-2038				1,368		1,359		1,368
	7.93	%	Apr-2042				2,853		2,853		3,084
	8.15	%	Mar-2037				1,167		1,273		1,175
	8.27	%	Jun-2042				2,499		2,499		2,711
	8.40	%	Apr-2012				201		201		201
	8.75	%	Aug-2036				3,624		3,615		3,627
							131,669		131,443		135,384
Forward Commitments1	6.60	%	May-2049		3,514		-		-		171
	6.65	%	Jun-2049		1,120		-		-		-
					4,634		-		-		171
Total FHA Permanent Securities				$	4,634	$	131,694	$	131,468	$	135,580

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     A F L - C I O  H O U S I N G  I N V E S T M E N T  T R U S T

Schedule of Portfolio Investments

June 30, 2009 (Dollars in thousands; unaudited)

Ginnie Mae Construction Securities (1.2% of net assets)

	Interest Rates2						Commitment Amount
	Permanent		Construction		Maturity Date				Face Amount		Amortized Cost		Value
Multifamily1	4.63	%	4.63	%	Sep-2037	3	$	1,500	$	1,500	$	1,456	$	1,246
	4.90	%	4.90	%	Mar-2044	3		1,000		1,000		990		849
	5.40	%	5.40	%	Feb-2049-Mar-2049			13,797		13,515		13,460		14,226
	5.55	%	5.55	%	May-2049	3		10,685		10,685		10,688		9,320
	5.80	%	5.80	%	Dec-1949			10,715		5,360		5,363		5,851
	6.15	%	6.15	%	Nov-2039			5,508		4,057		4,070		4,333
	6.57	%	6.57	%	Mar-2050			15,084		7,876		7,914		8,928
								58,289		43,993		43,941		44,753
Forward Commitments1	5.80	%	7.75	%	Jan-2051			26,122		-		-		(369	)
Total Ginnie Mae Construction Securities							$	84,411	$	43,993	$	43,941	$	44,384

Ginnie Mae Permanent Securities (28.0% of net assets)

	Interest Rate		Maturity Date	Face Amount		Amortized Cost		Value
Single Family	5.50	%	Jan-2033-Jun-2037	$	28,665	$	28,496	$	29,726
	6.00	%	Jan-2032-Aug-2037		18,114		18,096		18,960
	6.50	%	Jul-2028-Dec-2028		214		214		230
	7.00	%	Nov-2016-Jan-2030		4,880		4,953		5,291
	7.50	%	Apr-2013-Aug-2030		4,214		4,283		4,560
	8.00	%	Nov-2009-Nov-2030		1,728		1,776		1,915
	8.50	%	Nov-2009-Aug-2027		1,564		1,593		1,745
	9.00	%	May-2016-Jun-2025		469		478		526
	9.50	%	Sep-2021-Sep-2030		177		180		200
	10.00	%	Jun-2019		1		1		1
	13.00	%	Jul-2014		1		1		1
	13.25	%	Dec-2014		1		1		1
					60,028		60,072		63,156
Multifamily1	2.91	%	Jun-2018-Aug-2020		5,762		5,727		5,792
	3.40	%	Jan-2032		552		530		557
	3.61	%	May-2018		3,923		3,874		3,935
	3.65	%	Sep-2017-Oct-2027		11,087		10,882		11,165
	3.96	%	May-2032		462		440		467
	4.12	%	Feb-2039		5,000		4,726		5,093
	4.25	%	Feb-2031		1,177		1,174		1,179
	4.26	%	Jul-2029		3,000		2,992		3,073
	4.40	%	Jan-2024		11,819		11,824		11,971
	4.43	%	Apr-2034-Jun-2034		109,470		107,418		108,832
	4.49	%	Apr-2023		8,531		8,531		8,803
	4.59	%	May-2033		6,046		6,043		6,160
	4.66	%	Dec-2030		8,617		8,676		8,829
	4.70	%	Dec-2024		12,871		12,618		13,306

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Schedule of Portfolio Investments

June 30, 2009 (Dollars in thousands; unaudited)

Ginnie Mae Permanent Securities (28.0% of net assets), continued

	Interest Rate		Maturity Date		Face Amount		Amortized Cost			Value
	4.70	%	Jan-2047	3	$	5,935	$	5,946	$	5,960
	4.71	%	May-2025			33,294		33,258		34,453
	4.74	%	Feb-2045	3		6,026		5,846		6,093
	4.78	%	Aug-2044			9,843		9,941		9,893
	4.83	%	May-2046	3		5,495		5,495		4,673
	4.88	%	Mar-2036			17,000		16,766		17,546
	4.92	%	Feb-2034-May-2034			64,620		64,285		66,868
	4.94	%	Jun-2046	3		3,910		3,914		3,555
	5.00	%	Dec-2033			5,091		5,136		5,142
	5.05	%	Nov-2028			4,427		4,435		4,455
	5.05	%	Apr-2049	3		2,950		2,957		2,579
	5.12	%	Feb-2037			10,000		10,164		10,356
	5.13	%	Jul-2024-Aug-2032			18,404		18,333		19,181
	5.15	%	Jun-2023			32,449		32,887		33,491
	5.18	%	May-2042			2,203		2,226		2,280
	5.19	%	May-2045			8,865		8,638		9,183
	5.20	%	Apr-2047			25,816		26,057		25,816
	5.21	%	Jan-2045-Jan-2047			21,510		21,382		22,197
	5.25	%	Feb-2031	3		39,228		39,122		39,558
	5.30	%	Apr-2039			55,000		54,145		57,694
	5.32	%	Aug-2030			35,000		34,854		36,680
	5.34	%	Jul-2040			18,000		17,664		18,155
	5.34	%	Mar-2046	3		11,076		11,095		11,487
	5.38	%	Apr-2025			462		473		478
	5.45	%	May-2042			2,286		2,362		2,395
	5.46	%	Feb-2047			3,095		3,116		3,243
	5.50	%	Sep-2023-Jul-2033			37,814		39,320		39,508
	5.55	%	May-2026-Mar-2045			20,822		20,885		21,685
	5.58	%	May-2031-Oct-2031			94,582		94,900		99,845
	5.68	%	Jul-2027			15,152		15,122		16,067
	5.70	%	Mar-2037			2,420		2,432		2,468
	5.75	%	Dec-2026			3,683		3,729		3,890
	5.85	%	Nov-2045			1,954		1,957		2,053
	5.88	%	Oct-2043			5,544		5,735		5,927
	6.00	%	Jan-2046			3,610		3,613		3,833
	6.22	%	Aug-2035			14,331		14,342		15,047
	6.25	%	Feb-2034			4,789		5,057		5,181
	6.26	%	Apr-2027			10,000		10,639		10,715
	6.38	%	Mar-2026			10,000		10,249		10,657
	6.41	%	Aug-2023			1,596		1,596		1,639
	7.75	%	Aug-2035			51,050		50,802		53,602
						907,649		906,330		934,690
Total Ginnie Mae Securities					$	967,677	$	966,402	$	997,846

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       A F L - C I O  H O U S I N G  I N V E S T M E N T  T R U S T

Schedule of Portfolio Investments

June 30, 2009 (Dollars in thousands; unaudited)

Fannie Mae Securities (42.5% of net assets)

	Interest Rate	Maturity Date	Commitment Amount	Face Amount		Amortized Cost		Value
Single Family	0.71%	Jun-2036	$	$	25,920	$	25,242	$	25,220
	2.76%	May-2033			1,540		1,549		1,565
	3.36%	Nov-2033			8,109		8,116		8,277
	3.74%	Aug-2033			6,653		6,636		6,792
	3.92%	Jul-2033			6,288		6,324		6,420
	4.00%	Mar-2039-May-2039			39,840		40,100		38,683
	4.23%	Aug-2033			413		411		423
	4.45%	Jul-2033			2,361		2,343		2,427
	4.50%	Jun-2018-Jan-2039			22,773		22,634		23,141
	4.54%	Sep-2035			2,782		2,770		2,828
	4.57%	Aug-2033			2,994		2,989		3,055
	4.63%	Aug-2034			150		151		151
	5.00%	Jul-2018-Jul-2039			99,477		99,231		102,101
	5.50%	Jul-2017-Jun-2038			195,438		197,905		202,770
	6.00%	Apr-2016-Nov-2038			175,203		177,711		183,936
	6.50%	Nov-2016-Jul-2036			51,643		53,002		55,188
	7.00%	Nov-2013-May-2032			5,259		5,296		5,726
	7.50%	Nov-2016-Sep-2031			1,855		1,838		2,027
	8.00%	Jun-2012-May-2031			760		766		810
	8.50%	Nov-2009-Apr-2031			657		663		713
	9.00%	Jan-2024-May-2025			151		152		169
					650,266		655,829		672,422
Multifamily1	4.10%	Jun-2027			3,332		3,270		3,356
	4.22%	Jul-2018			4,114		3,910		4,203
	4.48%	Oct-2031			4,856		4,856		4,957
	4.56%	Jul-2019			7,500		7,526		7,495
	4.66%	Jul-2021-Sep-2033			8,301		8,393		8,412
	4.67%	Aug-2033			9,600		9,580		9,883
	4.68%	Jul-2019			14,200		14,397		14,314
	4.80%	Jun-2019			2,330		2,375		2,370
	4.86%	May-2019			1,559		1,599		1,592
	4.93%	Nov-2013			46,444		46,413		49,367
	4.94%	Apr-2019			3,500		3,606		3,600
	4.99%	Mar-2021-Aug-2021			42,270		42,256		42,616
	5.00%	Jul-2019			2,023		2,085		2,080
	5.02%	Jun-2019			880		886		907
	5.04%	Jul-2019			2,000		2,093		2,062
	5.05%	Jun-2019-Jul-2019			3,360		3,512		3,470
	5.11%	Jul-2019			935		947		969
	5.12%	Jul-2019			9,280		9,456		9,602
	5.13%	Jul-2019			950		963		983

(continued, next page)

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Schedule of Portfolio Investments

June 30, 2009 (Dollars in thousands; unaudited)

Fannie Mae Securities (42.5% of net assets), continued

Interest Rate	Maturity Date	Commitment Amount	Face Amount		Amortized Cost		Value
5.15%	Oct-2022	$	$	4,285	$	4,305	$	4,345
5.16%	Jan-2018			5,572		5,471		5,855
5.25%	Dec-2019			7,200		7,218		7,399
5.29%	Sep-2017-May-2022			9,093		9,082		9,480
5.34%	Apr-2016			6,495		6,474		6,902
5.35%	Apr-2012-Jun-2018			3,424		3,435		3,618
5.36%	Feb-2016			5,000		5,012		5,342
5.43%	Nov-2013			1,353		1,349		1,355
5.44%	Mar-2016			3,833		3,871		4,090
5.45%	May-2033			3,140		3,173		3,224
5.46%	Feb-2017			49,090		49,683		52,316
5.47%	Aug-2024			8,775		8,951		8,801
5.52%	May-2016			22,281		21,997		23,714
5.53%	Apr-2017			66,247		66,158		70,540
5.55%	Apr-2018			31,000		30,979		32,890
5.59%	May-2016			7,325		7,330		7,835
5.60%	Feb-2018-Jan-2024			12,395		12,379		12,920
5.62%	Jun-2011			28,946		28,849		28,948
5.63%	Dec-2019			12,715		12,807		13,532
5.70%	Jun-2016			1,445		1,476		1,549
5.80%	Jun-2018			72,413		72,049		77,282
5.86%	Dec-2016			337		339		367
5.91%	Mar-2037			2,139		2,205		2,232
5.92%	Dec-2016			329		331		358
5.93%	Apr-2012			3,404		3,609		3,655
5.96%	Jan-2029			464		472		489
6.03%	Jun-2017-Jun-2036			5,733		5,903		6,098
6.06%	Jul-2034			10,332		10,724		10,940
6.10%	Apr-2011			2,678		2,699		2,793
6.11%	Aug-2017			6,990		7,062		7,567
6.13%	Dec-2016			3,613		3,760		3,895
6.14%	Sep-2033			315		317		335
6.15%	Jan-2023-Oct-2032			7,594		7,678		8,028
6.16%	Aug-2013			9,736		10,124		9,758
6.19%	Jul-2013			5,000		5,226		5,416
6.22%	Aug-2032			1,842		1,898		1,964
6.23%	Sep-2034			1,506		1,591		1,599
6.27%	Jan-2012			2,061		2,056		2,216
6.28%	Nov-2028			3,288		3,526		3,508
6.35%	Jun-2020-Aug-2032			15,527		15,873		16,425
6.38%	Jul-2021			5,808		5,962		6,192
6.39%	Apr-2019			1,001		1,052		1,073
6.42%	Apr-2011			1,348		1,356		1,350
6.44%	Apr-2014-Dec-2018			45,590		45,885		49,329

(continued, next page)

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Schedule of Portfolio Investments

June 30, 2009 (Dollars in thousands; unaudited)

Fannie Mae Securities (42.5% of net assets), continued

	Interest Rate	Maturity Date		Commitment Amount		Face Amount			Amortized Cost			Value
	6.52%	May-2029				$	5,754		$	6,334		$	6,211
	6.63%	Jun-2014-Apr-2019					4,389			4,404			4,750
	6.65%	Aug-2011					1,685			1,721			1,798
	6.79%	Aug-2009					7,097			7,043			7,107
	6.80%	Jul-2016					738			738			822
	6.85%	Aug-2014					43,861			43,682			48,522
	6.88%	Feb-2028					4,789			5,273			5,173
	7.00%	Jun-2018					3,575			3,575			3,919
	7.01%	Apr-2031					3,413			3,439			3,706
	7.07%	Feb-2031					17,209			17,511			18,629
	7.18%	Aug-2016					461			461			517
	7.20%	Apr-2010-Aug-2029					8,765			8,540			9,478
	7.25%	Jul-2012					7,293			7,294			7,453
	7.26%	Dec-2018					11,730			12,594			12,843
	7.50%	Dec-2014					1,388			1,384			1,557
	7.75%	Dec-2012-Dec-2024					3,183			3,182			3,474
	8.00%	Nov-2019					1,955			1,945			1,959
	8.13%	Sep-2012-Aug-2020					7,436			7,400			7,465
	8.38%	Jan-2022					876			874			877
	8.40%	Jul-2023					487			479			538
	8.50%	Nov-2019					3,723			3,952			4,237
	8.63%	Sep-2028					6,562			6,562			7,352
	9.13%	Sep-2015					2,326			2,309			2,331
							814,791			820,515			860,480
Forward1/TBA4	4.00%	Jul-2039	4				(20,000	)		(19,646	)		(19,431	)
	6.15%	Jan-2019	1		31,087		-			-			2,302
					31,087		(20,000	)		(19,646	)		(17,129	)
Total Fannie Mae Securities				$	31,087	$	1,445,057		$	1,456,698		$	1,515,773

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Schedule of Portfolio Investments

June 30, 2009 (Dollars in thousands; unaudited)

Freddie Mac Securities (16.1% of net assets)

	Interest Rate	Maturity Date	Face Amount		Amortized Cost		Value
Single Family	0.62%	Dec-2035-Feb-2036	$	38,378	$	38,365	$	37,495
	0.67%	Apr-2036		7,512		7,501		7,306
	0.72%	Jul-2036		48,394		47,179		47,113
	2.99%	Jun-2033		1,909		1,903		1,948
	3.37%	Apr-2035		1,160		1,160		1,185
	4.00%	Apr-2039		34,886		35,076		33,793
	4.50%	Aug-2018-Jun-2039		45,393		45,143		45,902
	4.51%	Oct-2033		4,771		4,711		4,879
	4.66%	Jul-2035		1,362		1,356		1,403
	5.00%	Jan-2019-Feb-2039		92,826		91,083		95,447
	5.50%	Oct-2017-Jul-2038		146,329		144,588		151,627
	6.00%	Mar-2014-Feb-2038		76,456		77,894		80,294
	6.50%	Oct-2013-Nov-2037		40,946		42,591		43,590
	7.00%	Mar-2011-Mar-2030		1,007		983		1,065
	7.50%	Jul-2010-Apr-2031		826		808		879
	8.00%	Sep-2009-Feb-2030		321		312		347
	8.50%	Jun-2010-Jan-2025		288		290		316
	9.00%	Sep-2010-Mar-2025		133		133		148
				542,897		541,076		554,737
Multifamily1	5.42%	Apr-2016		10,000		9,925		10,108
	5.65%	Apr-2016		10,688		10,684		11,078
				20,688		20,609		21,186
Total Freddie Mac Securities			$	563,585	$	561,685	$	575,923

Commercial Mortgage-Backed Securities¹ (1.8% of net assets)

Issuer	Interest Rate	Maturity Date	Face Amount		Amortized Cost		Value
Credit Suisse	5.10%	Aug-2038	$	35,000	$	34,135	$	29,370
Lehman Brothers	5.16%	Feb-2031		19,500		19,149		15,849
Credit Suisse	5.61%	Feb-2039		25,000		25,167		20,701
Total Commercial Mortgage-Backed Securities			$	79,500	$	78,451	$	65,920

Government-Sponsored Enterprise Securities (0.8% of net assets)

Issuer	Interest Rate	Maturity Date	Face Amount		Amortized Cost		Value
Freddie Mac	5.00%	Apr-2017	$	25,000	$	25,457	$	27,132

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Schedule of Portfolio Investments

June 30, 2009 (Dollars in thousands; unaudited)

State Housing Finance Agency Securities(2.0% of net assets)

		Interest Rates2				Maturity	Face		Amortized
	Issuer	Permanent		Construction		Date	Amount		Cost		Value
Multifamily1	NYC Housing Development Corp.	N/A		3.45	%	May-2013	$	9,500	$	9,500	$	9,508
	MA Housing Finance Agency	4.20	%	N/A		Jun-2010		300		302		304
	MA Housing Finance Agency	5.25	%	N/A		Dec-2048		2,500		2,500		2,164
	MA Housing Finance Agency	5.30	%	N/A		Jun-2049		4,000		4,001		3,609
	MA Housing Finance Agency	5.40	%	N/A		Dec-2049		2,000		2,005		1,751
	NYC Housing Development Corp.	5.55	%	N/A		Nov-2039		5,000		4,978		4,953
	NYC Housing Development Corp.	5.69	%	N/A		Nov-2018		7,550		7,556		7,592
	MA Housing Finance Agency	5.70	%	N/A		Jun-2040		15,000		15,000		14,213
	MA Housing Finance Agency	5.92	%	N/A		Dec-2037		6,620		6,624		5,304
	MA Housing Finance Agency	6.50	%	N/A		Dec-2039		755		759		705
	MA Housing Finance Agency	6.58	%	N/A		Dec-2039		11,385		11,385		11,293
	MA Housing Finance Agency	6.70	%	N/A		Jun-2040		12,235		12,235		11,502
Total State Housing Finance Agency Securities							$	76,845	$	76,845	$	72,898

Other Multifamily Investments (0.4% of net assets)

	Interest Rates2				Commitment
	Permanent		Construction	Maturity Date	Amount		Face Amount		Amortized Cost		Value
Multifamily Construction/Permanent Mortgages1
	7.63	%	N/A	Jan-2011	$	813	$	99	$	99	$	102
	8.63	%	N/A	Apr-2025		1,469		1,193		1,190		1,181
	9.50	%	N/A	Apr-2024		760		641		641		635
						3,042		1,933		1,930		1,918
Privately Insured Construction/Permanent Mortgages1,5
	5.40	%	N/A	Apr-2047		9,000		8,848		8,858		6,348
	5.73	%	N/A	Aug-2047		5,575		5,505		5,509		4,000
	6.07	%	N/A	May-2048		1,000		989		1,006		721
	6.20	%	N/A	Dec-2047		3,325		3,295		3,315		2,460
						18,900		18,637		18,688		13,529
Total Other Multifamily Investments					$	21,942	$	20,570	$	20,618	$	15,447

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Schedule of Portfolio Investments

June 30, 2009 (Dollars in thousands; unaudited)

United States Treasury Securities (2.2% of net assets)

Interest Rate	Maturity Date	Face Amount		Amortized Cost		Value
2.75%	Feb-2019	$	20,000	$	20,122	$	18,734
3.13%	May-2019		15,000		14,772		14,507
4.00%	Aug-2018		10,000		10,037		10,375
4.50%	May-2038		35,000		39,842		36,159
Total United States Treasury Securities		$	80,000	$	84,773	$	79,775
Total Investments		$	3,433,921	$	3,446,338	$	3,530,678

1	Valued by the HIT’s management in accordance with the fair value procedures adopted by the HIT’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 the Department of Housing and Urban Development requires that such rates be charged earlier.
3	Tax-exempt bonds collateralized by Ginnie Mae securities.
4	Represents to be announced (“TBA”) securities for which actual securities that will be delivered to fulfill the trade have not been designated.
5	Loans insured by Ambac Assurance Corporation.

See accompanying Notes to Financial Statements.
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Statement of Operations

For the Six Months Ended June 30, 2009 (Dollars in thousands; unaudited)

Investment income*		$	87,816
Expenses
	Non-officer salaries and fringe benefits		3,523
	Officer salaries and fringe benefits		1,665
	Legal fees		169
	Consulting fees		164
	Auditing, tax and accounting fees		162
	Insurance		162
	Marketing and sales promotion (12b-1)		250
	Investment management		365
	Trustee expenses		14
	Rental expenses		477
	General expenses		770
	Total expenses		7,721
Net investment income			80,095
	Net realized loss on investments		(4,611	)
	Net change in unrealized appreciation on investments		42,382
Realized and unrealized net gain on investments			37,771
Net increase in net assets resulting from operations		$	117,866

*Includes forward commitments.

See accompanying Notes to Financial Statements.

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Statements of Changes in Net Assets

(Dollars in thousands)

		Six Months Ended June 30, 2009				Year Ended December 31, 2008
		(unaudited)
Increase in net assets from operations
	Net investment income		$	80,095			$	178,085
	Net realized gain/(loss) on investments			(4,611	)			22,522
	Net change in unrealized (depreciation)/appreciation on investments			42,382				(21,683	)
	Net increase in net assets resulting from operations			117,866				178,924
Decrease in net assets from distributions
	Distributions paid to participants or reinvested from:
	Net investment income			(81,225	)			(180,299	)
	Net decrease in net assets from distributions			(81,225	)			(180,299	)
Increase/(decrease) in net assets from unit transactions
	Proceeds from the sale of units of participation			113,427				24,419
	Dividend reinvestment of units of participation			72,665				158,864
	Payments for redemption of units of participation			(121,787	)			(431,078	)
	Net increase/(decrease) from unit transactions			64,305				(247,795	)
Total increase/(decrease) in net assets				100,946				(249,170	)
Net assets
	Beginning of period			3,467,603				3,716,773
	End of period			3,568,549				3,467,603
Distribution in excess of net investment income			$	(2,945	)		$	(2,965	)
Unit information
	Units sold			102,109				22,566
	Distributions reinvested			65,694				146,668
	Units redeemed			(110,374	)			(400,621	)
	Increase/(decrease) in units outstanding			57,429				(231,387	)

See accompanying Notes to Financial Statements.

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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 (HIT) is a common law trust created under the laws of the District of Columbia and is registered under the Investment Company Act of 1940, as amended (the Investment Company Act), as a no-load, open-end investment company. The HIT has obtained certain exemptions from the requirements of the Investment Company Act that are described in the HIT’s Prospectus and Statement of Additional Information.

Participation in the HIT 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 HIT 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, 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, commercial mortgage-backed 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 marketplace 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 HIT 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 HIT has retained an independent firm to determine the fair market value of such securities. In accordance with the procedures adopted by the HIT’s Board of Trustees, the monthly third-party valuation is reviewed by the HIT 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 reconciled with 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.

Financial Accounting Standards Board Statement of Financial Accounting Standards No. 157, Fair Value Measurements (FAS 157), clarifies the definition of fair value for financial reporting, establishes a framework for measuring fair value and requires additional disclosures about the use of the fair value measurements. FAS 157 also establishes a three-level hierarchy for fair value measurements based upon the transparency of inputs to the valuation of an asset or liability. Inputs may be observable or unobservable and refer broadly to the assumptions that market participants would use in pricing the asset or liability. Observable inputs reflect the assumptions market participants would use in pricing the asset or liability based on market data obtained from sources independent of the reporting entity. Unobservable inputs reflect the reporting entity’s own assumptions about the assumptions that market participants would use in pricing the asset or liability developed based on the best information available in the circumstances. The three levels of the fair value hierarchy under FAS 157 are described below:

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Notes to Financial Statements

(unaudited)

Level 1 – quoted prices in active markets for identical investment

Level 2 – other significant observable inputs (including quoted prices for similar investments, interest rates, prepayment speeds, credit risk, etc.)

Level 3 – significant unobservable inputs (including the HIT’s own assumptions in determining the fair value of investments)

The following is a summary of the inputs used as of June 30, 2009, in valuing the HIT’s investments carried at value:

Valuation Inputs Dollars in thousands	Investments in Securities		Other Financial Instruments*
Level 1 - Quoted Prices	$	-	$	-
Level 2 - Other Significant Observable Inputs		3,526,733		2,104
Level 3 - Significant Unobservable Inputs		1,841		-
Total	$	3,528,574	$	2,104

* Other financial instruments include forward commitments.

A roll forward of fair value measurements using significant unobservable inputs (Level 3) as of June 30, 2009, was as follows:

Dollars in thousands	Investments in Securities
Beginning balance, 12/31/08	$	1,884
Net purchases (sales) and settlements		-
Accrued discounts (premiums)		(27	)
Total realized and unrealized gain (loss)		(16	)
Transfers in and/or out of Level 3		-
Ending balance, 6/30/09	$	1,841

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 HIT’s policy is to comply with the requirements of the Internal Revenue Code of 1986, as amended (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.

Tax positions taken or expected to be taken in the course of preparing the HIT’s tax returns are evaluated 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 would be recorded as a tax benefit or expense in the current year. Management has analyzed the HIT’s tax positions taken on federal income tax returns for all open tax years and has concluded that no provision for income tax is required in the HIT’s financial statements.

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Notes to Financial Statements

(unaudited)

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) 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 HIT offers an income reinvestment plan that permits current participants automatically to reinvest their income distributions into HIT units of participation. Total reinvestment was approximately 89 percent of distributable income for the year ended June 30, 2009.

Investment Transactions and Income

For financial reporting purposes, 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 2009, the HIT 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, 2009, the HIT incurred approximately $250,000 of 12b-1 expenses.

Note 2. Investment Risk

Investment Rate Risk

As with any fixed-income investment, the market value of the HIT’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 HIT’s investments to increase. This could in turn further reduce the value of the HIT’s portfolio.

Prepayment and Extension Risk

The HIT 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.

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Notes to Financial Statements

(unaudited)

Prepayment risk is the risk that a security will pay more quickly than its assumed payment rate, shortening its expected average life, resulting in a lower return from the security. In such an event, the HIT may be required to reinvest the proceeds of such prepayments in other investments bearing lower interest rates. The majority of the HIT’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 HIT’s ability to reinvest principal repayments in higher returning investments may be limited.

These two risks may increase the sensitivity of the HIT’s portfolio to fluctuations in interest rates and negatively affect the value of the HIT’s portfolio.

Note 3. Transactions with Related Entities

During the six months ended June 30, 2009, the HIT provided the time of certain personnel to the AFL-CIO Investment Trust Corporation (ITC), a District of Columbia not-for-profit corporation, on a cost-reimbursement basis. During the period, an employee of the HIT also served as an officer of the ITC. The total cost for such personnel and related expenses for the six months ended June 30, 2009, amounted to approximately $173,000. During the six months ended June 30, 2009, the HIT was reimbursed for approximately $101,000 of current year costs. As of June 30, 2009, approximately $72,000 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 HIT on a cost-reimbursement basis. The total cost for such personnel and related expenses for the six months ended June 30, 2009, was approximately $2,100. During the six months ended June 30, 2009, the HIT paid the ITC approximately $2,100 of current costs.

Note 4. Commitments

Certain assets of the HIT are invested in short-term investments until they are required to fund purchase commitments for long-term investments. As of June 30, 2009, the HIT had outstanding unfunded purchase commitments of approximately $79.1 million. The HIT 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, 2009, the value of the publicly traded mortgage-backed securities maintained for the reserve in a segregated account was approximately $3.33 billion.

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

Note 5. Investment Transactions

Purchases and sales of investments, excluding short-term securities and U.S. Treasury securities, for the six months ended June 30, 2009, were $495.3 million and $276.8 million, respectively.

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       A F L - C I O  H O U S I N G  I N V E S T M E N T  T R U S T

Notes to Financial Statements

(unaudited)

Note 6. Distributions

No provision for federal income taxes is required since the HIT 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 U.S. 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, 2009.

At June 30, 2009, the cost of investments for federal income tax purposes approximated book cost at amortized cost of $3,433,921,000. Net unrealized gain aggregated $84,340,000 at period-end, of which $121,113,000 related to appreciated investments and $36,773,000 related to depreciated investments.

Note 7. Retirement and Deferred Compensation Plans

The HIT 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, 2009. The total HIT pension expense for the six months ended June 30, 2009, was approximately $630,000.

The HIT 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 2009, the HIT is matching dollar for dollar the first $4,400 of each employee’s contributions. The HIT’s 401(k) contribution for the six months ended June 30, 2009, was approximately $169,000.

Note 8. Loan Facility

The HIT has a $15 million uncommitted loan facility which expires on January 29, 2010. Under this facility, borrowings bear interest per annum as offered by the lender. The HIT had no outstanding balance under the facility for the six months ended June 30, 2009. No compensating balances are required.

Note 9. Contract Obligations

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

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Financial Highlights

		Six Months Ended June 30, 2009 (unaudited)
					Year Ended December 31
Per share data					2008			2007			2006			2005			2004
	Net asset value, beginning of period	$	1,098.48		$	1,097.01		$	1,081.27		$	1,086.97		$	1,110.61		$	1,125.21
	Income from investment
	operations:
	Net investment income		25.50	*		53.64	*		52.72			53.55			50.08			48.63
	Net realized and unrealized		12.14			1.91			17.54			(4.60	)		(21.25	)		(2.38	)
	gains (losses) on investments
	Total income (loss) from		37.64			55.55			70.26			48.95			28.83			46.25
	investment operations
	Less distributions from:
	Net investment income		(25.86	)		(54.08	)		(54.52	)		(54.65	)		(52.47	)		(49.10	)
	Net realized gains on		-			-			-			-			-			(11.75	)
	investments
	Total distributions		(25.86	)		(54.08	)		(54.52	)		(54.65	)		(52.47	)		(60.85	)
Net asset value, end of period		$	1,110.26		$	1,098.48		$	1,097.01		$	1,081.27		$	1,086.97		$	1,110.61
Ratios
	Ratio of expenses to average net		0.44	%**		0.41	%		0.41	%		0.41	%		0.37	%		0.37	%
	assets
	Ratio of net investment income		4.7	%**		5.0	%		5.0	%		5.0	%		4.5	%		4.4	%
	to average net assets
	Portfolio turnover rate		32.0	%**		23.8	%		42.1	%		65.0	%		68.4	%		85.5	%
Number of outstanding units, end of period			3,214,149			3,156,720			3,388,107			3,334,684			3,290,698			3,300,858
Net assets, end of period (in thousands)		$	3,568,549		$	3,467,603		$	3,716,773		$	3,605,679		$	3,576,875		$	3,665,950
Total return			7.04	%**		5.25	%		6.70	%		4.65	%		2.64	%		4.20	%

^*The average shares outstanding method has been applied for per share information.

^**Annualized.

See accompanying Notes to Financial Statements.

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       A F L - C I O  H O U S I N G  I N V E S T M E N T  T R U S T

Leadership

Board of Trustees

Richard Ravitch, Chairman*
Principal, Ravitch Rice & Co. LLC

John J. Sweeney*
President, AFL-CIO

Arlene Holt Baker
Executive Vice-President, AFL-CIO

Richard L. Trumka
Secretary-Treasurer, AFL-CIO

Mark Ayers
President, Building and Construction Trades Department, 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

Lindell K. Lee
International Secretary-Treasurer, International Brotherhood of Electrical Workers Jack Quinn
President, Erie Community College, State University of New York; 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.

James A. Williams
General President, International Union of Painters and Allied Trades of the United States and Canada

* Executive Committee member.

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Leadership

Officers and Key Staff	Service Providers	AFL-CIO Housing Investment Trust
Stephen Coyle Chief Executive Officer Theodore S. Chandler Chief Operating Officer Erica Khatchadourian Chief Financial Officer Chang Suh Executive Vice President and Chief Portfolio Manager Saul A. Schapiro General Counsel Debbie Cohen Chief Development Officer Stephanie H. Wiggins Chief Investment Officer – Multifamily Finance Marcie Cohen Senior Vice President and Director of Workforce Housing	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 PNC Global Investment Services Wilmington, Delaware Custodian PFPC Trust Company, which will be named PNC Trust Company effective June 7, 2010 Philadelphia, Pennsylvania	National Office 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
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 Liz Diamond Director, Western Regional Office	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.

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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.

Not applicable.

Item 6. Schedule of Investments.

Included herein under Item 1.

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 407(c)(2)(iv) of Regulation S-K (17 CFR 229.407) (as required by Item 22(b)(15) 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 design and operation of the Trust’s disclosure controls and procedures (as defined in Rule 30a-3(c) under the Act (17 CFR 270.30a-3(c)) are generally effective to provide reasonable assurance that information required to be disclosed by the Trust in this report is recorded, processed, summarized and reported within the

time periods specified in the Securities and Exchange Commission’s rules and forms, based on their evaluation of the effectiveness of the design and operation of such controls and procedures as of a date within 90 days of the filing of this report.

(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 of the period covered by this report 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)) is filed herewith.

(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 is filed herewith.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934 and the Investment Company Act of 1940, the 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 3, 2009

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 Trust and in the capacities and on the dates indicated.

/s/ Stephen Coyle

Stephen Coyle

Chief Executive Officer

(Principal Executive Officer)

Date: September 3, 2009

/s/ Erica Khatchadourian

Erica Khatchadourian

Chief Financial Officer

(Principal Financial Officer)

Date: September 3, 2009

EX-99.CERT

Exhibit (a)(2)

CERTIFICATION

I, Erica Khatchadourian, certify that:

1. I have reviewed this report on Form N-CSR of the AFL-CIO Housing Investment Trust (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of trustees (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ Erica Khatchadourian

Erica Khatchadourian

Chief Financial Officer

AFL-CIO Housing Investment Trust

Date: September 3, 2009

Exhibit (a)(2)

CERTIFICATION

I, Stephen Coyle, certify that:

1. I have reviewed this report on Form N-CSR of the AFL-CIO Housing Investment Trust (the “registrant”);

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations, changes in net assets, and cash flows (if the financial statements are required to include a statement of cash flows) of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in rule 30a-3(c) under the Investment Company Act of 1940) and internal control over financial reporting (as defined in Rule 30a-3(d) under the Investment Company Act of 1940) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of a date within 90 days prior to the filing date of this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the second fiscal quarter of the period covered by this report that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed to the registrant’s auditors and the audit committee of the registrant’s board of trustees (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

/s/ Stephen Coyle

Stephen Coyle

Chief Executive Officer

AFL-CIO Housing Investment Trust

Date: September 3, 2009

EX-99.906CERT

Exhibit (b)

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 “Report”), 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 3, 2009

/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

Exhibit (b)

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 “Report”), 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 3, 2009

/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.