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)

     1717 K Street, N.W., Suite 707 Washington, D.C.  20036
        (Address of principal executive offices)    (Zip code)


                       Kenneth G. Lore
             Swidler Berlin Shereff Friedman, LLP
      3000 K Street, N.W. Suite 300, Washington, D.C.  20007
               (Name and address of agent for service)

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



Date of fiscal year end: December 30, 2002
Date of reporting period: June 30, 2003












ITEM 1.       REPORTS TO STOCKHOLDERS

A copy of the 2003 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.











































ITEM 2.  CODE OF ETHICS

Not Applicable.

ITEM 3.  AUDIT COMMITTEE FINANCIAL EXPERT

Not Applicable.

ITEM 4.  PRINCIPAL ACCOUNTANT FEES AND SERVICES

Not Applicable.

ITEM 5.  AUDIT COMMITTEE OF LISTED REGISTRANTS

Not Applicable.

ITEM 6.  [RESERVED]

ITEM 7.  DISCLOSURE OF PROXY VOTING POLICIES AND PROCEDURES FOR CLOSED-END
         MANAGEMENT INVESTMENT COMPANIES

Not Applicable.

ITEM 8.  [RESERVED]

ITEM 9.  CONTROLS AND PROCEDURES

     (a) The Trust's Chief Executive Officer (the principal executive officer)
         and Executive Vice President-Finance and Administration (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 a date within 90 days of the filing date of the
         Report.

     (b) There were no significant changes in the Trust's internal controls or
         in other factors that could significantly affect these controls
         subsequent to the date of the evaluation of those matters described
         in subparagraph (a) above, including any corrective actions with
         regard to significant deficiencies and material weaknesses.




ITEM 10.  EXHIBITS


   (a)(1)     Not Applicable.

   (a)(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)). Certifications pursuant to Section 302 of
the Sarbanes-Oxley Act of 2002 are attached hereto.

   (b) A separate or combined certification for each principal executive
officer and principal officer of the registrant as required by Rule 30a-2(b)
under the Act of 1940. Certifications pursuant to Section 906 of the
Sarbanes-Oxley Act of 2002 are attached hereto.








                                  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, this 8th day of September, 2003.

                                  AFL-CIO HOUSING INVESTMENT TRUST



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


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 in the
capacities indicated, this 8th day of September, 2003.


/s/ Stephen Coyle
- ---------------------------------------
Stephen Coyle
Chief Executive Officer
(Principal Executive Officer)


/s/ Erica Khatchadourian
- ---------------------------------------
Erica Khatchadourian
Executive Vice President-Finance
  and Administration
(Principal Financial Officer)




                       FORM N-CSR CERTIFICATION PURSUANT TO
                      SECTION 302 OF THE SARBANES-OXLEY ACT

I, Stephen Coyle, certify that:

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

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) 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. [Omitted]

   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 registrant's most
      recent fiscal half-year (or the registrant's second fiscal half-year in
      the case of an annual 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 8, 2003




                     FORM N-CSR CERTIFICATION PURSUANT TO
                     SECTION 302 OF THE SARBANES-OXLEY ACT

I, Erica Khatchadourian, certify that:

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

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) 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. [Omitted]

    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 registrant's
       most recent fiscal half-year (or the registrant's second fiscal
       half-year in the case of an annual 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
Executive Vice President -
  Finance and Administration
AFL-CIO Housing Investment Trust


Date: September 8, 2003




                               (Other Exhibits)

   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 (the "Report") of the AFL-CIO
Housing Investment Trust for the period ended June 30, 2003 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 8, 2003



/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.




                             (Other Exhibits)

     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 (the "Report") of the AFL-CIO
Housing Investment Trust for the period ended June 30, 2003 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 8, 2003


/s/ Erica Khatchadourian
- ---------------------------------------
Erica Khatchadourian,
Executive Vice President -
 Finance and Administration
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









   AFL-CIO HOUSING INVESTMENT TRUST SEMI-ANNUAL REPORT JUNE 30, 2003



                              REPORT TO PARTICIPANTS

The AFL-CIO Housing Investment Trust (HIT) produced returns above its industry
benchmark, the Lehman Brothers Aggregate Bond Index (Lehman Aggregate), in the
first six months of 2003. The HIT strategy of overweighting in federally
insured or guaranteed multifamily mortgage-backed securities (MBS) contributed
to the Trust producing a six-month return of 4.00 percent. The rate of return
for the Lehman Aggregate during this period was 3.93 percent.

At June 30, the HIT reached $3.57 billion in total net assets, an 8.9 percent
increase since December 31, 2002. Contributing to this growth was a total of
$287.0 million in additional participant investments, which included
a record mid-year level of $211.4 million in new investments and $75.6 million
in reinvested dividends. The HIT's growth during this period also reflected a
net realized return on investments of $49.2 million and $.3 million in
unrealized gains. With seven new participants, the total number of investors
rose to 426. Cash and short-term investments were 1.7 percent of net
assets at mid-year.

                               2003 PARTICIPANTS MEETING

The 2003 Annual Meeting of Participants was held in Washington, D.C., on
Wednesday, May 28, 2003. The following matters were put to a vote of
Participants at the meeting through the solicitation of proxies:

Richard Ravitch was reelected to chair the Board of Trustees by a vote of
1,875,454.4585 for, 215.1182 against, 6,581.8280 abstentions, and
1,058,271.9075 votes not cast.

The following Trustees were not up for election and their term of office
continued after the date of the Annual Meeting: Linda Chavez-Thompson, Frank
Hanley<F1>, Frank Hurt, George Latimer, Terence M. O'Sullivan, Tony Stanley,
Andrew L. Stern, John J. Sweeney, Richard Trumka, and Patricia F. Wiegert.

Ernst & Young, LLP was ratified as the HIT's Certified Public Accountants by a
vote of 1,875,039.0752 for, 0.0000 against, 7,212.3295 abstentions, and
1,058,271.9075 votes not cast.

The table below details votes pertaining to Trustees who were elected at the
Annual Meeting:

Trustee                    Votes For    Votes Against    Votes Abstaining<F2>
- ------------------------------------------------------------------------------
John J. Flynn           1,875,669.5767     0.0000            6,581.8280
Jeremiah O'Connor       1,875,669.5767     0.0000            6,581.8280
Edward C. Sullivan      1,808,060.4288     67,609.1479       6,581.8280
Marlyn J. Spear         1,809,457.4337     0.0000           72,793.9710
Stephen Frank           1,870,692.1980     0.0000           11,559.2067

<F1> Trustee Hanley resigned from the Board effective May 30, 2003.
<F2> Votes Not Cast:1,058,271.9075




                                  FINANCIAL STATEMENTS
                                      JUNE 30, 2003
                                       (Unaudited)




                          American Federation of Labor and
                        Congress of Industrial Organizations
                              Housing Investment Trust



STATEMENT OF ASSETS AND LIABILITIES
June 30, 2003 (Dollars in thousands, unless otherwise noted; unaudited)

Assets        Investments,
                at fair value (amortized cost $3,320,758)*         $ 3,530,090
              Cash                                                      58,934
              Accrued interest receivable                               20,218
              Receivables-Investments sold                             102,791
              Accounts receivable                                          385
              Prepaid expenses and other assets                          2,751
- ------------------------------------------------------------------------------
              Total Assets                                         $ 3,715,169
- ------------------------------------------------------------------------------
Liabilities   Accounts payable and accrued expenses                      1,570
              Payables-Investments purchased                           136,330
              Redemptions payable                                          506
              Refundable deposits                                          957
              Income distribution payable,
                 net dividends reinvested of $12,025                     1,251
- ------------------------------------------------------------------------------
              Total Liabilities                                    $   140,614
- ------------------------------------------------------------------------------
              Net Assets Applicable to Participants' Equity -
              Certificates of Participation -
              Authorized Unlimited; Outstanding 3,057,939 Units    $ 3,574,555
- ------------------------------------------------------------------------------
Net Asset Value Per Unit of Participation (in dollars)             $  1,168.94
- ------------------------------------------------------------------------------

STATEMENT OF PARTICIPANTS' EQUITY
June 30, 2003 (Dollars in thousands; unaudited)

PARTICIPANTS' EQUITY

Participants' equity consisted of the following:

     Amount invested and reinvested by current participants        $ 3,336,952
     Accumulated unrealized appreciation in the
       value of investments                                            209,332
     Accumulated undistributed investment income - net                     271
- ------------------------------------------------------------------------------
Total Participants' Equity                                         $ 3,574,555
- ------------------------------------------------------------------------------

* The cost for Federal tax purposes approximates book cost.

See accompanying notes to financial statements.



SCHEDULE OF PORTFOLIO INVESTMENTS
June 30, 2003 (Dollars in thousands; unaudited)

FHA PERMANENT SECURITIES AND COMMITMENTS (8.3% OF NET ASSETS)

              Interest  Maturity       Commitment  Face    Amortized   Value
                Rate      Dates         Amount    Amount     Cost
- ------------------------------------------------------------------------------
Single Family  7.75%  Jul-2021-Aug-2021 $        $ 311     $ 311     $ 311
               8.00%  Jul-2021                     209       209       209
              10.31%  Feb-2016                      65        65        65
- ------------------------------------------------------------------------------
                                                   585       585       585
- ------------------------------------------------------------------------------
Multifamily    6.50%  May-2004                   2,823     2,823     2,859
               6.66%  May-2040                   5,897     5,905     6,566
               6.70%  Dec-2042                   6,134     6,140     6,976
               6.75%  Nov-2037-Jul-2040         10,122     9,890    11,201
               6.88%  Apr-2030                  29,881    29,503    34,075
               7.00%  Jun-2039                   6,176     6,237     7,027
               7.07%  Sep-2039                   8,232     8,236     8,836
               7.13%  Mar-2040                   8,068     8,044     9,370
               7.17%  Feb-2040                   4,845     4,849     5,245
               7.20%  Oct-2039                   3,216     3,224     3,759
               7.50%  Sep-2032                   1,688     1,694     2,004
               7.55%  Aug-2012                     712       712       717
               7.63%  Dec-2027-Apr-2031         63,724    63,623    67,072
               7.70%  Oct-2039                  12,341    12,277    14,307
               7.75%  Aug-2038-Oct-2038          4,405     4,407     4,612
               7.80%  Dec-2038                  21,386    21,392    21,386
               7.85%  Sep-2037                   2,558     2,558     2,672
               7.88%  Nov-2036-Jul-2038          9,269     9,277    10,586
               7.93%  Apr-2042                   2,940     2,940     3,549
               8.00%  Oct-2031-Jun-2038         12,051    11,993    12,644
               8.13%  Jun-2028                   4,764     4,764     5,033
               8.25%  Nov-2036                   3,550     3,556     3,681
               8.27%  Jul-2042                   2,567     2,567     3,097
               8.40%  Apr-2012                     995       995     1,003
               8.75%  Jul-2036-Aug-2036         12,066    12,020    13,247
               8.80%  Oct-2032                   5,496     5,496     5,547
               8.88%  May-2036                   2,449     2,408     2,544
               9.25%  Jun-2036                  19,838    19,843    19,838
               9.50%  Jul-2027                     365       369       416
              10.00%  Mar-2031                   5,705     5,705     5,769
- ------------------------------------------------------------------------------
                                               274,263   273,447   295,638
- ------------------------------------------------------------------------------
Forward
  Commitments
               5.60%  Jun-2038         2,979         -         -       226
- ------------------------------------------------------------------------------
                                       2,979         -         -       226
- ------------------------------------------------------------------------------
Total FHA Permanent Securities
  and Commitments                    $ 2,979 $ 274,848 $ 274,032 $ 296,449
- ------------------------------------------------------------------------------
See accompanying notes to financial statements.



SCHEDULE OF PORTFOLIO INVESTMENTS
June 30, 2003 (Dollars in thousands; unaudited)

FHA Construction Securities (0.4% of net assets)



                 Interest Rates*        Maturity  Commitment   Face   Amortized  Value
                Permanent Construction    Date**    Amount    Amount     Cost

- -------------------------------------------------------------------------------------------------
                                                            
Multifamily     7.05%     7.05%         Mar-2043   $ 5,418    $ 5,418   $ 5,420  $ 6,237
                7.20%     7.20%         Sep-2033     7,150      7,150     7,150    8,271
- -------------------------------------------------------------------------------------------------
Total FHA Construction Securities                 $ 12,568   $ 12,568  $ 12,570 $ 14,508

* 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.

** Permanent mortgage maturity date.

See accompanying notes to financial statements.



SCHEDULE OF PORTFOLIO INVESTMENTS
June 30, 2003 (Dollars in thousands; unaudited)

Ginnie Mae Securities and Commitments (22.2% of net assets)


                Interest   Maturity      Commitment     Face      Amortized  Value
                  Rates     Dates          Amount      Amount        Cost
- -----------------------------------------------------------------------------------------
                                                          
Single Family     5.50%   Jan-2033                     $ 14,588  $ 14,773   $ 15,222
                  6.00%   Jan-2032-Jan-2033              22,218    22,897     23,301
                  6.50%   Jul-2028-Jun-2032              42,318    43,332     44,437
                  7.00%   Nov-2016-Jan-2030              43,670    44,507     46,310
                  7.50%   Apr-2013-Aug-2030              35,336    36,208     37,850
                  8.00%   Nov-2009-Dec-2030              21,830    22,349     23,550
                  8.50%   Nov-2009-Aug-2027              11,672    11,945     12,763
                  9.00%   May-2016-Jun-2025               2,704     2,783      3,012
                  9.50%   May-2019-Sep-2030               1,175     1,208      1,319
          10.00%-13.50%   Jul-2014-Jun-2019                  49        49         59
- -------------------------------------------------------------------------------------------
                                                        195,560   200,051    207,823
- -------------------------------------------------------------------------------------------
Multifamily       4.46%   Oct-2025                       25,000    24,940     26,133
                  4.92%   May-2034                       40,000    40,073     41,684
                  5.05%   Nov-2028                       54,626    54,885     57,850
                  5.13%   Jul-2024                        5,000     5,112      5,429
                  5.35%   Apr-2038                        7,674     8,218      8,337
                  5.68%   Jul-2027                       30,152    31,438     33,369
                  5.86%   Oct-2023                       10,000    10,733     11,223
                  5.88%   Nov-2011                       15,000    15,000     16,875
                  6.00%   Dec-2042                        3,941     3,888      4,462
                  6.09%   Jun-2021                        5,000     5,000      5,668
                  6.11%   Nov-2021                          970       970      1,097
                  6.13%   Sep-2042                       25,268    25,274     28,698
                  6.34%   Aug-2023                        3,464     3,464      3,983
                  6.50%   Dec-2039                        3,531     3,531      4,016
                  6.56%*  Jun-2037                       38,760    39,286     44,602
                  6.63%   Oct-2033                        6,534     6,357      6,922
                  6.69%   Jun-2040                        5,546     5,539      6,379
                  6.75%   Aug-2041                        2,745     2,657      3,190
                  7.23%   Jun-2041                        8,105     7,864      9,577
                  7.25%   Jun-2042                        4,194     4,235      4,770
                  7.38%   Mar-2042                        6,659     6,687      7,932
                  7.45%   Jun-2042                        9,662     9,662     11,501
                  7.50%   April-2038                     32,350    31,925     37,742
                  7.57%   Feb-2042                        2,552     2,552      2,924
                  7.70%   Mar-2042                       35,760    35,284     42,977
                  7.80%   Jul-2039                       18,910    18,918     22,271
                  7.88%   Nov-2036                          885       885        958
                  8.15%   Nov-2025                        3,632     3,607      4,222
                  8.40%   Nov-2041                        8,681     8,649      8,855
                  8.75%   Dec-2026                        4,170     4,170      4,211
                  9.00%   Jun-2030                        7,722     7,499      7,802
                 12.55%   Jun-2025                        5,926     5,893      6,070
- --------------------------------------------------------------------------------------------
                                                        432,419   434,195    481,729
- --------------------------------------------------------------------------------------------

* This security is held in a segregated account as collateral for the secured
  bank line of credit.

See accompanying notes to financial statements.

                                                        continued on next page



SCHEDULE OF PORTFOLIO INVESTMENTS
June 30, 2003 (Dollars in thousands; unaudited)

Ginnie Mae Securities and Commitments (22.2% of net assets), continued


                Interest   Maturity        Commitment     Face      Amortized  Value
                  Rates     Dates            Amount      Amount        Cost
- -----------------------------------------------------------------------------------------
                                                             
Forward
 Commitments      4.34%    Mar-2034               -       94,990    95,201     94,463
                  5.55%    Dec-2027-Jun-2036  51,903           -       124      4,585
                  6.63%    December-2038      21,385           -         -      2,825
                  7.50%    April-2044         23,300           -         -        932
- ------------------------------------------------------------------------------------------
                                              96,588      94,990    95,325    102,805
- ------------------------------------------------------------------------------------------
Total Ginnie Mae Securities and Commitments $ 96,588   $ 722,969 $ 729,571  $ 792,357
- ------------------------------------------------------------------------------------------

See accompanying notes to financial statements.



SCHEDULE OF PORTFOLIO INVESTMENTS
June 30, 2003 (Dollars in thousands; unaudited)

Ginnie Mae Construction Securities and Commitments (10.0% of net assets)

                Interest Rates*       Maturity       Commitment   Face   Amortized
             Permanent Construction    Dates**         Amount    Amount    Cost     Value
- ------------------------------------------------------------------------------------------
                                                             
Multifamily   4.63%       4.63%      Dec-2044          $ 6,178  $   588  $   592  $   638
              5.20%       3.45%      Jan-2045           21,139   21,139   21,204   22,027
              6.00%       6.00%      Sep-2044           25,635    4,387    3,988    7,221
              6.15%       6.28%      May-2044           18,600   14,543   14,544   16,788
              6.60%       6.60%      May-2043           17,793   11,889   11,481   14,489
              6.70%       6.70%      Jan-2044           30,528   28,155   28,040   32,989
              6.75%       6.75%      Jun-2023-Jun-2043   3,899    3,634    3,521    4,252
              6.93%       7.13%      Mar-2044           33,136   27,651   27,689   31,938
              7.00%       7.00%      Jun-2043           66,552   61,242   61,247   70,953
              7.24%       7.24%      Dec-2042           51,242   47,544   47,548   49,338
              7.33%       7.33%      Dec-2042           11,893   10,644   10,637   12,440
              7.75%       7.25%      May-2033           51,779   44,497   44,242   54,348
               N/A***     6.33%      Feb-2005****       18,200   15,740   16,037   16,650
               N/A***     6.54%      Dec-2004****       13,620   12,596   13,039   13,277
               N/A***     8.75%      May-2005****        7,628    7,097    7,437    7,479
- ------------------------------------------------------------------------------------------
                                                       377,822  311,346  311,246  354,827
- ------------------------------------------------------------------------------------------
Forward
 Commitments  4.88%       4.88%      Jul-2046           35,000        -      175    1,029
              4.95%       4.95%      Jan-2045           11,200        -      181      420
- ------------------------------------------------------------------------------------------
                                                        46,200        -      356    1,449
- ------------------------------------------------------------------------------------------
Total Ginnie Mae Construction Securities
   and Commitments                                    $424,022 $311,346 $311,602 $356,276
- ------------------------------------------------------------------------------------------

* 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.

  ** Permanent mortgage maturity date.
 *** Construction only securities.
**** Date the HIT is required to sell securities to bond trustee.

See accompanying notes to financial statements.




SCHEDULE OF PORTFOLIO INVESTMENTS
June 30, 2003 (Dollars in thousands; unaudited)

Fannie Mae Securities and Commitments (42.1% of net assets)


               Interest   Maturity           Commitment   Face  Amortized   Value
                 Rate      Dates               Amount    Amount    Cost
- -------------------------------------------------------------------------------------
                                                          
Single Family    3.84%    Jun-2033            $          $ 15,583 $ 16,026  $  15,583
                 4.50%    Jun-2018                         24,862   25,620     25,403
                 5.00%    Jul-2033                         25,000   25,500     25,281
                 5.50%    Jul-2017-Jun-2033               272,615  276,633    282,384
                 6.00%    Jan-2006-Apr-2033               277,093  283,766    288,312
                 6.50%    Nov-2016-Nov-2032               158,551  161,430    165,510
                 7.00%    Nov-2013-Jun-2032                47,542   48,313     50,146
                 7.50%    Jul-2004-Sep-2031                15,857   15,934     16,855
                 8.00%    Jan-2007-May-2031                 8,045    8,194      8,655
                 8.50%    Nov-2009-Apr-2031                 6,709    6,840      7,381
                 9.00%    Jul-2009-May-2025                 1,867    1,891      2,063
                 9.50%    Aug-2004                             33       33         34
- --------------------------------------------------------------------------------------
                                                          853,757  870,180    887,607
- --------------------------------------------------------------------------------------
Multifamily      3.81%    Nov-2012                          9,726    9,726     10,054
                 4.49%    Nov-2012                         20,000   20,000     20,902
                 4.74%    Jun-2013                         14,350   14,457     15,159
                 4.77%    Apr-2012                          2,434    2,541      2,625
                 4.85%    Jan-2013                         23,430   25,495     24,352
                 4.88%    Sep-2011                         26,286   26,483     28,478
                 4.92%    May-2013                         25,981   27,594     27,166
                 5.14%    Jan-2018                          8,160    8,553      8,793
                 5.15%    Sep-2017-Oct-2022                24,046   24,188     25,823
                 5.16%    Dec-2011                         13,466   13,511     14,739
                 5.23%    Mar-2018-Apr-2021                 5,020    5,212      5,445
                 5.24%    Dec-2012                          2,407    2,418      2,568
                 5.35%    Dec-2012                          6,027    6,054      6,575
                 5.43%    May-2021                          3,597    3,715      3,962
                 5.45%    May-2033                          3,422    3,478      3,688
                 5.58%    Jan-2033                          3,931    3,995      4,437
                 5.80%    Dec-2032-Jan-2033                35,536   36,074     39,182
                 5.84%    Aug-2010                          8,746    9,077      9,662
                 5.88%    Nov-2027                          3,591    3,680      3,970
                 6.02%    Nov-2010                          2,735    2,735      3,170
                 6.09%    May-2011                         12,725   13,973     14,841
                 6.13%    Dec-2016                          4,775    5,221      5,441
                 6.15%    Oct-2032                          3,877    4,008      4,364
                 6.22%    Aug-2032                          1,984    2,069      2,240
                 6.25%    Dec-2013                          2,280    2,351      2,515
                 6.27%    Jan-2012                          2,221    2,280      2,546
                 6.35%    Mar-2020              11,750*    11,750   11,750     13,324
                 6.35%    Jun-2020-Aug-2032                22,105   23,233     25,287
                 6.44%    Apr-2014                          7,224    8,087      8,339
                 6.50%    Jun-2016                          3,453    3,458      3,888
                 6.52%    Jul-2008                          2,964    2,964      3,262
                 6.53%    May-2030                         11,920   11,965     13,507
                 6.63%    Apr-2019                          2,497    2,497      2,863
                 6.65%    Aug-2007                            625      632        674
                 6.74%    Aug-2007                          3,400    3,820      3,907

                                                          continued on next
page



SCHEDULE OF PORTFOLIO INVESTMENTS
June 30, 2003 (Dollars in thousands; unaudited)

Fannie Mae Securities and Commitments (42.1% of net assets), continued

               Interest   Maturity           Commitment   Face  Amortized   Value
                 Rate      Dates               Amount    Amount    Cost
- -------------------------------------------------------------------------------------
                                                          
Multifamily
(continued)      6.80%    Jul-2016                        1,120     1,120        1,279
                 6.85%    Mar-2029                        8,000     8,924        9,299
                 6.90%    Jun-2007                        20,049   20,612       22,715
                 6.96%    Aug-2007                        8,561     8,829        9,815
                 7.01%    Apr-2031                        3,693     3,741        4,290
                 7.04%    Jul-2014           7,418**      7,410     7,422        8,744
                 7.07%    Feb-2031                       18,674    19,165       21,764
                 7.16%    Jan-2022                        8,606     8,822        9,530
                 7.18%    Aug-2016                          681       681          788
                 7.20%    Apr-2010-Aug-2029              10,325    10,008       11,984
                 7.25%    Nov-2011-Jul-2012               9,543     9,543       10,078
                 7.27%    Dec-2009                        4,987     5,005        5,065
                 7.30%    May-2010-Aug-2006               44,927   46,317       50,410
                 7.37%    Jan-2013                        1,084     1,104        1,159
                 7.38%    Jun-2014                        2,428     2,446        2,809
                 7.50%    Dec-2014                        2,325     2,334        2,708
                 7.71%    Feb-2010                        9,678     9,866       11,245
                 7.75%    Dec-2012-Dec-2024               4,827     4,828        5,654
                 8.00%    Nov-2019-May-2020               6,510     6,493        7,099
                 8.13%    Sep-2012-Aug-2020              10,454    10,430       11,812
                 8.38%    Jan-2022                        1,043     1,048        1,216
                 8.40%    Jul-2023                          563       552          688
                 8.50%    Sep-2006-Sep-2026               2,057     2,057        2,327
                 8.63%    Sep-2028                        7,104     7,104        8,682
                 9.13%    Sep-2015                        3,557     3,543        4,035
                 9.25%    Jun-2018                        4,823     4,812        5,619
- --------------------------------------------------------------------------------------
                                               19,168   539,720   554,100      598,562
- --------------------------------------------------------------------------------------
Forward
  Commitments
                 4.55%    Sep-2033                  -     5,400     5,470        5,370
                 4.66%    Jul-2021-Aug-2033         -     9,060     9,257        9,161
                 5.60%    Oct-2022          12,560***         -      (282)       1,634
                 6.75%    Mar-2010          22,000            -          -         880
- --------------------------------------------------------------------------------------
                                              34,560      14,460     14,445     17,045
Total Fannie Mae Securities
  and Commitments                            $53,728  $1,407,937 $1,438,725 $1,503,214
- ---------------------------------------------------------------------------------------

*   During construction, the investment is a participation in the construction
    loan which is secured by a repurchase guaranty from the Bank of America;
    the permanent financing will be a Fannie Mae MBS for which the Trust has
    issued its commitment to purchase.
**  During construction, the investment is a participation in the construction
    loan which is secured by a letter of credit from the Federal Home Loan
    Bank of Des Moines; the permanent financing will be a Fannie Mae MBS
    for which the Trust has issued its commitment to purchase.
*** During construction, the investment is a participation in the construction
    loan which is secured by a letter of credit from the LaSalle Bank National
    Association; the permanent financing will be a Fannie Mae MBS for which
    the Trust has issued its commitment to purchase.

See accompanying notes to financial statements.




SCHEDULE OF PORTFOLIO INVESTMENTS
June 30, 2003 (Dollars in thousands; unaudited)

Freddie Mac Securities (5.6% of net assets)


              Interest      Maturity       Face      Amortized
                Rate          Dates       Amount       Cost         Value
- ------------------------------------------------------------------------------
                                                    
Single Family  5.50%   Apr-2033            $ 24,673   $ 25,281     $ 25,489
               6.00%   Apr-2005-Jan-2033     93,423     95,288       96,923
               6.50%   Dec-2006-Jul-2032     24,487     24,447       25,611
               7.00%   Jun-2004-Mar-2030     14,173     14,210       15,029
               7.50%   Nov-2003-Apr-2031     14,261     14,244       15,185
               8.00%   May-2008-Feb-2030      7,448      7,513        7,924
               8.25%   Nov-2022                  59         59           64
               8.50%   Jun-2010-Jan-2025      5,650      5,723        6,102
               9.00%   Sep-2010-Mar-2025      1,174      1,202        1,283
- ----------------------------------------------------------------------------
                                            185,348    187,967      193,610
- ----------------------------------------------------------------------------
Multifamily    8.00%   Feb-2009               5,425      5,431        5,460
- ----------------------------------------------------------------------------
                                              5,425      5,431        5,460
- ----------------------------------------------------------------------------
Total Freddie Mac Securities              $ 190,773  $ 193,398    $ 199,070
- ----------------------------------------------------------------------------

Government Sponsored Entities Notes (1.2% of net assets)

               Interest        Maturity     Face   Amortized
Issuer           Rate           Date       Amount    Cost          Value
- -----------------------------------------------------------------------------
                                                   
Fannie Mae     2.25%           May-2006    $ 15,045   $ 15,247    $ 15,247
Fannie Mae     5.50%           Jul-2012      20,000     20,526      21,144
Freddie Mac    6.01%           Dec-2005       6,000      6,072       6,626
- -----------------------------------------------------------------------------
Total Government Sponsored Entities Notes  $ 41,045   $ 41,845    $ 43,017
- -----------------------------------------------------------------------------

See accompanying notes to financial statements.



SCHEDULE OF PORTFOLIO INVESTMENTS
June 30, 2003 (Dollars in thousands; unaudited)

United States Treasury Notes (7.5% of net assets)

               Interest     Maturity     Face     Amortized
                 Rate        Date       Amount      Cost     Value
- ----------------------------------------------------------------------
                                                  
              0.00%         Jul-2003     $ 7,215   $ 7,210    $ 7,210
              1.63%         Apr-2005       3,500     3,523      3,523
              2.25%         Jul-2004       6,530     6,614      6,614
              2.63%         May-2008      12,130    12,240     12,240
              3.00%         Feb-2008      15,000    15,193     15,436
              3.25%         Aug-2007       1,100     1,148      1,148
              3.38%         Apr-2004       1,250     1,275      1,275
              3.50%         Nov-2006       2,085     2,198      2,198
              3.63%         May-2013      32,445    33,213     32,698
              3.88%         Feb-2013      63,000    63,457     64,831
              4.38%         Aug-2012      55,000    56,624     58,970
              4.88%         Feb-2012       1,300     1,445      1,445
              5.63%         May-2008      15,000    16,504     17,198
              5.75%         Aug-2010      27,935    31,279     32,702
              5.88%    Nov-2004-Nov-2005   6,710     7,233      7,233
              6.75%         May-2005       1,900     2,100      2,100
             10.75%         Aug-2005       1,750     2,093      2,093
- ----------------------------------------------------------------------
Total United States Treasury Notes      $253,850  $263,349   $268,914
- ----------------------------------------------------------------------


State Housing Finance Agency Securities (1.3% of net assets)

                           Interest  Maturity         Face      Amortized
Issuer                       Rate      Dates         Amount       Cost       Value
- ----------------------------------------------------------------------------------
                                                               
Multifamily

NJ Housing & Mortgage
Finance Agency               7.63%  Oct-2009         $   653     $   653    $   708

Ulster County Industrial
Development Agency           7.70%  Jun-2006-Jun-2029 38,260      38,264     38,260

MA Housing Finance Agency    8.00%  Jan-2026           4,620       4,613      4,855

NJ Housing & Mortgage
Finance Agency               8.38%   Feb-2007            579         601        630

MA Housing Finance Agency    8.63%   Jan-2013            400         406        444

MA Housing Finance Agency    9.00%   Jan-2025            923         923        959
- -----------------------------------------------------------------------------------
Total State Housing Finance Agency Securities        $45,435     $45,460    $45,856
- -----------------------------------------------------------------------------------


See accompanying notes to financial statements.




SCHEDULE OF PORTFOLIO INVESTMENTS
June 30, 2003 (Dollars in thousands; unaudited)

Other Multifamily Investments (0.2% of net assets)

              Interest Rates*         Maturity    Commitment      Face   Amortized
           Permanent Construction      Dates**      Amount        Amount   Cost     Value
- ------------------------------------------------------------------------------------------
                                                              
Multifamily Construction/Permanent Mortgages

               8.13%     N/A          Aug-2005     $ 1,016  $   348   $    341  $     348
               8.63%     N/A          Jun-2025                1,352      1,352      1,352
               9.50%     N/A      Aug-2012-Apr-2024           2,013      2,013      2,013
- ------------------------------------------------------------------------------------------
                                                     1,016    3,713      3,706      3,713
- ------------------------------------------------------------------------------------------
Privately Insured Construction/Permanent Mortgage***

               5.95%     5.95%        Mar-2044       4,400    4,400      4,400      4,616
- ------------------------------------------------------------------------------------------
                                                     4,400    4,400      4,400      4,616
- ------------------------------------------------------------------------------------------
Other Multifamily Investments                      $ 5,416  $ 8,113    $ 8,106    $ 8,329
- ------------------------------------------------------------------------------------------
Total Long-Term Investments                              $3,268,884 $3,318,658 $3,527,990
- ------------------------------------------------------------------------------------------

  *  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.
 **  Permanent mortgage maturity date.
***  Loan insured by Ambac Assurance Corporation.

See accompanying notes to financial statements.



SCHEDULE OF PORTFOLIO INVESTMENTS
June 30, 2003 (Dollars in thousands; unaudited)

Short-Term Investments (0.5% of net assets)



                           Maturity    Interest   Face      Amortized
Description                  Date        Rate     Amount       Cost     Value
- ---------------------------------------------------------------------------------
                                                         
Repurchase Agreement
Amalgamated Bank*        Mar-2004       1.25%     $ 2,000    $ 2,000    $ 2,000
- ---------------------------------------------------------------------------------
                                                    2,000      2,000      2,000
- ---------------------------------------------------------------------------------
Certificate of Deposit
Shore Bank-Pacific       May-2004       2.11%         100        100        100
- ---------------------------------------------------------------------------------
                                                      100        100        100
- ---------------------------------------------------------------------------------
Total Short-Term Investments                      $ 2,100    $ 2,100    $ 2,100
- ---------------------------------------------------------------------------------
Total Investments                              $3,270,984 $3,320,758 $3,530,090
- ---------------------------------------------------------------------------------

* This instrument was purchased in March 2003. The Trust will receive $2.025
  million upon maturity.  The underlying collateral of the repurchase
  agreement is a Ginnie Mae security with a market value of $2.154
  million.

See accompanying notes to financial statements.




STATEMENT OF OPERATIONS
For the Six Months Ended June 30, 2003 (Dollars in thousands; unaudited)

Investment Income      FHA permanent securities
                      (including forward commitments)        $    12,420

                       FHA construction securities                   764

                       Ginnie Mae securities
                      (including forward commitments)             23,835

                       Ginnie Mae construction securities
                      (including forward commitments)              9,700

                       Fannie Mae securities
                      (including forward commitments)             31,831

                       Freddie Mac securities                      5,545

                       Government-sponsored Entities Notes         1,001

                       United States Treasury Notes                3,102

                       State Housing Finance Agency Securities     1,778

                       Other multifamily investments                 297

                       Short-term investments                        344
- -------------------------------------------------------------------------
                       Total Income                             $ 90,617
- -------------------------------------------------------------------------
Expenses               Officer salaries and fringe benefits      $   965

                       Other salaries and fringe benefits          2,927

                       Legal fees                                    227

                       Consulting fees                               419

                       Auditing, tax and accounting fees             169

                       Insurance                                     138

                       Marketing and sales promotion (12b-1)         282

                       Investment management                         212

                       Trustee expenses                               19

                       Rental expenses                               352

                       General expenses                              842
- -------------------------------------------------------------------------
                       Total Expenses                            $ 6,552
- -------------------------------------------------------------------------
Investment Income-Net                                           $ 84,065
- -------------------------------------------------------------------------
Realized gain on investments                                    $ 49,239
Net change in unrealized appreciation on investments                 278

- -------------------------------------------------------------------------
Realized and Unrealized Net Gains on Investments                $ 49,517
- -------------------------------------------------------------------------
Net Increase in Net Assets Resulting from Operations           $ 133,582
- -------------------------------------------------------------------------

See accompanying notes to financial statements.




STATEMENTS OF CHANGES IN NET ASSETS
(Dollars in thousands)

                                               Six Months        Year
                                                 Ended           Ended
                                              June 30, 2003  December 31, 2002
                                               (unaudited)
- ------------------------------------------------------------------------------
                                                        
Increase in Net Assets from Operations

           Investment income-net                $ 84,065          $ 172,167
           Realized gain on investments           49,239             14,815
           Net change in unrealized
             appreciation on investments             278            141,142
- ------------------------------------------------------------------------------
           Net increase in net assets
             resulting from operations           133,582            328,124
- ------------------------------------------------------------------------------
Decrease in Net Assets from Distributions

           Distributions paid to participants
             or reinvested from:
           Investment income-net                 (84,065)          (172,167)
           Net realized gains on investments           -            (14,815)
- ------------------------------------------------------------------------------
           Net decrease in net assets from
             distributions                       (84,065)          (186,982)
- ------------------------------------------------------------------------------
Increase (Decrease) in Net Assets from Unit Transactions

           Proceeds from the sale of units
             of participation                    211,354            341,676
           Dividend reinvestment of units
             of participation                     75,593            167,759
           Payments for redemption of units
             of participation                    (43,672)          (120,296)
- ------------------------------------------------------------------------------
           Net increase from unit
             transactions                        243,275            389,139
- ------------------------------------------------------------------------------
           Total increase in net assets          292,792            530,281
           Net assets at beginning of period   3,281,763          2,751,482
- ------------------------------------------------------------------------------
           Net Assets at End of Period       $ 3,574,555        $ 3,281,763
- ------------------------------------------------------------------------------
Unit Information

           Units sold                            182,047            300,736
           Distributions reinvested               65,500            148,388
           Units redeemed                        (37,610)          (106,106)
- ------------------------------------------------------------------------------
           Increase in Units Outstanding         209,937            343,018
- ------------------------------------------------------------------------------

See accompanying notes to financial statements.





NOTES TO FINANCIAL STATEMENTS, unaudited
June 30, 2003

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 registered under the
Investment Company Act of 1940 as a no-load, open-end investment company. The
Trust has obtained certain exemptions from the requirements of the Investment
Company Act of 1940 that are described in the Trust's Prospectus and Statement
of Additional Information.

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 calculation) is calculated as of the close of
business of the major bond markets in New York on the last business day of the
month.

Portfolio securities for which market quotations are readily available (single
family MBS investments, US Agency debt and US Treasury securities) are valued
by an independent pricing service, using published prices, market quotes and
dealer bids.

Portfolio investments for which market quotations are not readily available
(multifamily MBS investments, mortgage securities, and construction mortgage
securities) are valued at their fair value using dealer bids and discounted
cash flow models. The respective cash flow models use market based discounts
and prepayment rates developed for each investment category. The market-based
discount rate is composed of a risk-free yield (i.e., a US Treasury Note)
adjusted for an appropriate risk premium. The risk premium reflects actual
premiums in the market place over the yield on US 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 and participation interests, value is
determined based upon the total amount, funded and/or un-funded, of the
commitment.

The values have been determined in good faith under consistently applied
procedures adopted by the Board of Trustees. The above process ensures that
the valuation of the assets in the portfolio reflects the fair value of each
investment, based on its unique characteristics. In accordance with the
procedures adopted by the Board, a monthly third-party valuation is received
and reviewed by management. Any adjustments arising from the review are
subsequently reviewed and approved by the third party valuation firm employed
by the Trust.

Short-term investments with remaining maturities of sixty days or less are
valued on the basis of amortized cost, which constitutes fair value under the
procedures adopted by the Board.



NOTES TO FINANCIAL STATEMENTS, unaudited

Use of Estimates

The preparation of financial statements in conformity with accounting
principles generally accepted in the United States 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.

Distributions to Participants

At the end of each calendar month, pro rata distribution is made to
participants of the net investment income earned during the preceding month.
Amounts distributable, but not disbursed, as of the balance sheet date are
classified as income distribution payable.

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

The Trust offers an income reinvestment plan that allows current participants
automatically to reinvest their income distribution into Trust units of
participation. Total reinvestment was 90 percent of distributable income for
the six months ended June 30, 2003.

Investment Income

Interest income is recognized on an accrual basis. Commitment fees, points and
other discounts or premiums resulting from the funding or acquisition of Trust
investments are accounted for as an adjustment to the cost of the investment
and amortized over the estimated life of the investment using the effective
interest method. Realized gains and losses from investment transactions are
recorded on the trade date using an identified cost basis.

12b-1 Plan of Distribution

The Board of Trustees annually approves 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 service and distribution activities (12b-1
expenses). For the year ended December 31, 2003, the Trust may pay for 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, 2003, the Trust incurred approximately $282,000 of 12b-l
expenses.

Receivables-Investments Sold

Receivables-Investments Sold represents investments that were sold prior to
June 30, 2003, which settled subsequent to June 30, 2003.

Payables-Investments Purchased
Payables-Investments Purchased represents investments that were purchased
prior to June 30, 2003, which settled subsequent to June 30, 2003.



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. Generally, the market value of the
Trust's investments will rise at times when market interest rates fall below
the interest rates on the investments. However, at such times, some borrowers
may prepay the mortgage loans backing the Trust's securities more quickly than
might otherwise be the case. In such 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. When market interest rates rise above the interest
rates of the Trust's investments, the prepayment rate of the mortgage loans
backing the Trust's securities may decrease, causing the average maturity of
the Trust's investments to lengthen. This may increase the Trust's portfolio's
sensitivity to rising rates and its potential for price declines.

Note 3. Transactions with Related Entities

During the six months ended June 30, 2003, the Trust provided the time of
certain personnel to the AFL-CIO Investment Trust Corporation (ITC), a D.C.
non-profit corporation, on a cost-reimbursement basis. During the six months,
certain employees of the Trust also served as officers of the ITC. The total
cost for such personnel and related expenses for the six months ended June 30,
2003 amounted to approximately $800,000. During the six months ended June 30,
2003, the Trust was reimbursed for approximately $800,000 of current and prior
year costs. As of June 30, 2003, approximately $230,000 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 Trust on a
cost-reimbursement basis. The total cost for such personnel and related
expenses for the six months ended June 30, 2003 was approximately $81,000.
During the six months ended June 30, 2003, the Trust paid the ITC
approximately $63,000 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, 2003, the Trust had outstanding unfunded purchase commitments of
approximately $257.6 million. The Trust maintains a reserve, in the form of
securities, no less than the total of the outstanding unfunded purchase
commitments, less short-term investments. As of June 30, 2003, the value of
the publicly traded mortgage-backed securities maintained for the reserve in a
segregated account was approximately $2.7 billion.

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


NOTES TO FINANCIAL STATEMENTS, unaudited

Note 5. Investment Transactions

A summary of investment transactions (excluding short-term investments and US
Treasury Notes) for the separate instruments included in the Trust's
investment portfolio, at amortized cost, for the six months ended June 30,
2003, follows (dollars in thousands):

                                                                                                 State    Other
                                                                                     Government Housing  Multi-
                FHA           FHA       Ginnie     Ginnie Mae    Fannie     Freddie   sponsored Finance  Family
             Permanent   Construction    Mae      Construction    Mae         Mac     Entities  Agency   Invest-
            Securities*   Securities   Securities*  Securities*  Securities* Securities Notes  Securities ments
- ----------------------------------------------------------------------------------------------------------------
                                                                              
Balance,
January 1, 2003  $ 347,310   $ 25,770     $ 793,473    $ 271,418 $ 1,260,206 $ 213,109 $ 63,561 $ 46,404 $ 3,809

Purchases and
insured
construction
securities
advances,
net of discounts       -        1,173       167,670      102,181     547,944    94,800   30,045       -    4,400

Change in discounts
and (premiums)       255           (3)          110           49      10,517     1,127   (1,761)     (3)      -

Transfers         (6,650)     (14,365)       54,465      (33,451)         -         -        -         -      -

Principal
reductions/sales (66,883)          (5)     (286,147)     (28,595)   (379,942) (115,638) (50,000)    (941)  (103)
- ----------------------------------------------------------------------------------------------------------------
Balance,
June 30, 2003   $274,032       $12,570     $729,571     $311,602  $1,438,725  $193,398  $41,845  $45,460  $8,106
- ----------------------------------------------------------------------------------------------------------------


*Including forward commitments.



NOTES TO FINANCIAL STATEMENTS, unaudited

Note 6. Federal Taxes

The information set-forth in this footnote is actual information as of
December 31, 2002 and will be updated in the Annual Report for December 31,
2003 to coincide with the 2003 tax reporting year-end.

The tax character of distributions paid during the twelve months ended
December 31, 2002 was as follows (dollars in thousands):

                                                                      2002
- ----------------------------------------------------------------------------
Ordinary investment income - net                                  $ 178,863
Long-term capital gains on investments                                8,119
- ----------------------------------------------------------------------------
Total net distributions paid to participants or reinvested        $ 186,982
- ----------------------------------------------------------------------------

As of December 31, 2002, the components of accumulated earnings
  on a tax basis were as follows (dollars in thousands):
- ----------------------------------------------------------------------------
Undistributed ordinary income                                     $      29
Unrealized appreciation                                             209,054
Other temporary differences                                             242
- ----------------------------------------------------------------------------
Total accumulated earnings                                        $ 209,325
- ----------------------------------------------------------------------------

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 employee contributions, at rates
approximating 12.4 percent of employees' salaries for the six months ended
June 30, 2003. The total Trust pension expense for the six months ended June
30, 2003 was approximately $359,000.  The Trust also participates in a
deferred compensation plan, referred to as a 401(k) plan, covering
substantially all employees. This plan permits an employee to defer the lesser
of 100 percent of their total compensation or the applicable IRS limit. The
Trust matches dollar for dollar the first $2,700 of employee contributions.
The Trust's 401(k) contribution for the six months ended June 30, 2003 was
approximately $112,000.

Note 8. Bank Securities

The Trust has a secured $12.5 million bank line of credit. A segregated
account of Trust-owned securities serves as collateral for the line of credit.
As of June 30, 2003, the value of the collateral in the account is
approximately $44.6 million. In addition, the Trust has a $12.5 million
uncommitted and unsecured line of credit facility. Borrowings under these
agreements bear interest at LIBOR plus one-half percent. Both lines of credit
mature on June 30, 2004. The Trust had no outstanding balance on either of
these facilities during the period. No compensating balances are required.




Selected Per Share Data and Ratios for the Six Months Ended June 30, 2003, and
the Years Ended December 31, 2002, 2001, 2000 and 1999


                                                   Six Months
                                                     Ended
                                                    June 30,
                                                      2003       2002       2001       2000       1999
                                                  (unaudited)
- -------------------------------------------------------------------------------------------------------------
                                                                                 
Per Share Data

    Net asset value, beginning of period            $ 1,152.30 $ 1,098.40 $ 1,085.42 $ 1,035.72 $ 1,114.08

    INCOME FROM INVESTMENT OPERATIONS:

    Net investment income                                28.81      65.19      70.86      72.83      71.65

    Net realized and unrealized gains
     (losses) on investments                             16.64      59.15      16.24      49.70     (77.96)
- -------------------------------------------------------------------------------------------------------------
    TOTAL INCOME (LOSS) FROM INVESTMENT OPERATIONS       45.45     124.34      87.10     122.53      (6.31)
- -------------------------------------------------------------------------------------------------------------
    Less:

    Distribution from investment income- net            (28.81)    (65.19)    (70.93)    (72.83)    (71.74)

    Distribution from realized gains on investments          -      (5.25)     (3.19)         -      (0.31)
- -------------------------------------------------------------------------------------------------------------
    TOTAL DISTRIBUTIONS                                 (28.81)    (70.44)    (74.12)    (72.83)    (72.05)
- -------------------------------------------------------------------------------------------------------------
Net Asset Value, End of Period                      $ 1,168.94 $ 1,152.30 $ 1,098.40 $ 1,085.42 $ 1,035.72
- -------------------------------------------------------------------------------------------------------------
Ratios

     Ratio of expenses to average net assets**           0.39%      0.36%      0.37%      0.38%       0.39%

     Ratio of net investment income
       to average net assets**                           4.9%       5.8%       6.4%       6.9%        6.7%

     Portfolio turnover rate**                          64.8%      64.3%      40.9%      25.9%       31.7%
- -----------------------------------------------------------------------------------------------------------
NUMBER OF OUTSTANDING UNITS
AT END OF PERIOD                                    3,057,939  2,848,002  2,504,984  2,282,511  2,075,197
- -----------------------------------------------------------------------------------------------------------
NET ASSETS, END OF PERIOD
(IN THOUSANDS)                                     $3,574,555 $3,281,763 $2,751,482 $2,477,482 $2,149,327
- -----------------------------------------------------------------------------------------------------------
TOTAL RETURN*                                           8.16%     11.64%      8.21%      12.31%     (0.57%)
- -----------------------------------------------------------------------------------------------------------

*  Net of fund expenses. Percent is annualized.
** Percents are annualized.

See accompanying notes to financial statements.








                   AFL-CIO Housing Investment Trust
                    1717 K Street, NW, Suite 707
                       Washington, DC 20036
                          202.331.8055
                        www.aflcio-hit.com