Text of US HB 1737 (2019)

I 116TH CONGRESS 1ST SESSION H. R. 1737 To make housing more affordable, and for other purposes. IN THE HOUSE OF REPRESENTATIVES MARCH 13, 2019 Mr. RICHMOND (for himself, Mr. CUMMINGS, Ms. MOORE, Ms. LEE of Cali- fornia, Ms. PRESSLEY, Ms. WILD, Mr. POCAN, Ms. NORTON, Mr. COHEN, Ms. TLAIB, Mr. RASKIN, Mr. KHANNA, Mr. KENNEDY, and Ms. BONAMICI) introduced the following bill; which was referred to the Com- mittee on Financial Services, and in addition to the Committees on Ways and Means, the Judiciary, Education and Labor, and Transportation and Infrastructure, for a period to be subsequently determined by the Speak- er, in each case for consideration of such provisions as fall within the ju- risdiction of the committee concerned A BILL To make housing more affordable, and for other purposes. Be it enacted by the Senate and House of Representa- 1 tives of the United States of America in Congress assembled, 2 SECTION 1. SHORT TITLE; TABLE OF CONTENTS. 3 (a) SHORT TITLE.—This Act may be cited as the 4 ‘‘American Housing and Economic Mobility Act of 2019’’. 5 (b) TABLE OF CONTENTS.—The table of contents for 6 this Act is as follows: 7 Sec. 1. Short title; table of contents. VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6211 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 2 •HR 1737 IH TITLE I—MAKING HOUSING MORE AFFORDABLE Sec. 101. Local housing innovation grants. Sec. 102. Investing in affordable housing infrastructure. Sec. 103. Conditions for the sale of real estate-owned properties and non-per- forming loans. TITLE II—TAKING THE FIRST STEPS TO REVERSE THE LEGACY OF HOUSING DISCRIMINATION AND GOVERNMENT NEGLIGENCE Sec. 201. Down payment assistance program for communities formerly seg- regated by law. Sec. 202. Formula grant program for communities that have not recovered from the financial crisis. Sec. 203. Strengthening the Community Reinvestment Act of 1977. Sec. 204. Amendments relating to credit union service to underserved areas. TITLE III—REMOVING BARRIERS THAT ISOLATE COMMUNITIES Sec. 301. Expanding rights under the Fair Housing Act. Sec. 302. Improving outcomes in housing assistance programs. TITLE IV—ESTATE TAX REFORM Sec. 401. Amendment to Internal Revenue Code of 1986. Sec. 402. Rate adjustment. Sec. 403. Required minimum 10-year term, etc., for grantor retained annuity trusts. Sec. 404. Certain transfer tax rules applicable to grantor trusts. Sec. 405. Elimination of generation-skipping transfer tax exemption for certain trusts. Sec. 406. Simplifying gift tax exclusion for annual gifts. TITLE I—MAKING HOUSING 1 MORE AFFORDABLE 2 SEC. 101. LOCAL HOUSING INNOVATION GRANTS. 3 (a) DEFINITIONS.—In this section: 4 (1) ELEMENTARY SCHOOL; SECONDARY 5 SCHOOL.—The terms ‘‘elementary school’’ and ‘‘sec- 6 ondary school’’ have the meanings given those terms 7 in section 8101 of the Elementary and Secondary 8 Education Act of 1965 (20 U.S.C. 7801). 9 (2) ELIGIBLE ENTITY.—The term ‘‘eligible enti- 10 ty’’ means— 11 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 3 •HR 1737 IH (A) a State; 1 (B) a unit of general local government; or 2 (C) a metropolitan area. 3 (3) INSTITUTION OF HIGHER EDUCATION.—The 4 term ‘‘institution of higher education’’ has the 5 meaning given the term in section 101 of the Higher 6 Education Act of 1965 (20 U.S.C. 1001). 7 (4) METROPOLITAN AREA; STATE; UNIT OF 8 GENERAL LOCAL GOVERNMENT.—The terms ‘‘metro- 9 politan area’’, ‘‘State’’, and ‘‘unit of general local 10 government’’ have the meanings given those terms in 11 section 102 of the Housing and Community Devel- 12 opment Act of 1974 (42 U.S.C. 5302). 13 (5) SECRETARY.—The term ‘‘Secretary’’ means 14 the Secretary of Housing and Urban Development. 15 (b) ESTABLISHMENT.—Not later than 1 year after 16 the date of enactment of this Act, the Secretary shall es- 17 tablish a program to make grants to eligible entities 18 that— 19 (1) reform local land use restrictions to bring 20 down the costs of producing affordable housing; and 21 (2) remove unnecessary barriers to building af- 22 fordable units in their communities. 23 (c) ELIGIBLE ACTIVITIES.—An eligible entity receiv- 24 ing a grant under this section may use funds to— 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 4 •HR 1737 IH (1) carry out any of the activities described in 1 section 105 of the Housing and Community Devel- 2 opment Act of 1974 (42 U.S.C. 5305); 3 (2) carry out any of the activities permitted 4 under the program for national infrastructure in- 5 vestments (commonly known as the ‘‘Better Utilizing 6 Investments to Leverage Development (BUILD) dis- 7 cretionary grant program’’) authorized under title I 8 of division L of the Consolidated Appropriations Act, 9 2018 (Public Law 115–141) or a subsequent appro- 10 priations Act; or 11 (3) modernize, renovate, or repair facilities used 12 by public elementary schools, public secondary 13 schools, and public institutions of higher education, 14 including modernization, renovation, and repairs 15 that— 16 (A) promote physical, sensory, and envi- 17 ronmental accessibility; and 18 (B) are consistent with a recognized green 19 building rating system. 20 (d) APPLICATION.— 21 (1) IN GENERAL.—An eligible entity desiring a 22 grant under this section shall submit to the Sec- 23 retary an application that demonstrates that the eli- 24 gible entity has carried out, or is in the process of 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 5 •HR 1737 IH carrying out, initiatives that facilitate the expansion 1 of the supply of well-located affordable housing. 2 (2) ACTIVITIES.—Initiatives that meet the cri- 3 teria described in paragraph (1)— 4 (A) include— 5 (i) establishing ‘‘by-right’’ develop- 6 ment, which allows jurisdictions to admin- 7 istratively approve new developments that 8 are consistent with their zoning code; 9 (ii) revising or eliminating off-street 10 parking requirements to reduce the cost of 11 housing production; 12 (iii) instituting measures that 13 incentivize owners of vacant land to rede- 14 velop the space into affordable housing or 15 other productive uses; 16 (iv) revising minimum lot size require- 17 ments and bans or limits on multifamily 18 construction to allow for denser and more 19 affordable development; 20 (v) instituting incentives to promote 21 dense development, such as density bo- 22 nuses; 23 (vi) passing inclusionary zoning ordi- 24 nances that require a portion of newly de- 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 6 •HR 1737 IH veloped units to be reserved for low- and 1 moderate-income renters or homebuyers; 2 (vii) streamlining regulatory require- 3 ments and shortening processes, reforming 4 zoning codes, or other initiatives that re- 5 duce barriers to housing supply elasticity 6 and affordability; 7 (viii) allowing accessory dwelling 8 units; 9 (ix) using local tax incentives to pro- 10 mote development of affordable housing; 11 and 12 (x) implementing measures that pro- 13 tect tenants from harassment and displace- 14 ment, including access to counsel for ten- 15 ants facing eviction, the prohibition of evic- 16 tion except for just cause, and measures 17 intended to prevent or mitigate sudden in- 18 creases in rents, or repealing laws that 19 prevent localities from implementing those 20 measures; and 21 (B) do not include activities that alter or- 22 dinances that govern wage and hour laws, fam- 23 ily and medical leave laws, or protections for 24 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 7 •HR 1737 IH workers’ health and safety, anti-discrimination, 1 and right to organize. 2 (e) LABOR LAWS.— 3 (1) IN GENERAL.—All laborers and mechanics 4 employed by contractors or subcontractors in the 5 performance of construction work financed in whole 6 or in part with a grant received under this section 7 shall be paid wages at rates not less than those pre- 8 vailing on similar construction in the locality, as de- 9 termined by the Secretary of Labor in accordance 10 with subchapter IV of chapter 31 of title 40, United 11 States Code (commonly known as the ‘‘Davis-Bacon 12 Act’’). 13 (2) EXCEPTION.—Paragraph (1) shall not 14 apply with respect to— 15 (A) the rehabilitation of residential prop- 16 erty if the property contains less than 8 units; 17 or 18 (B) construction carried out by employees 19 of the eligible entity receiving the grant under 20 this section. 21 (f) AUTHORIZATION OF APPROPRIATIONS.—There is 22 authorized to be appropriated to carry out this section 23 $2,000,000,000 for each of fiscal years 2020 through 24 2024. 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 8 •HR 1737 IH SEC. 102. INVESTING IN AFFORDABLE HOUSING INFRA- 1 STRUCTURE. 2 (a) HOUSING TRUST FUND.—Section 1338(a) of the 3 Federal Housing Enterprises Financial Safety and Sound- 4 ness Act of 1992 (12 U.S.C. 4568(a)) is amended by add- 5 ing at the end the following: 6 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.— 7 There is authorized to be appropriated to the Hous- 8 ing Trust Fund $44,500,000,000 for each of fiscal 9 years 2020 through 2029.’’. 10 (b) CAPITAL MAGNET FUND.—Section 1339 of the 11 Federal Housing Enterprises Financial Safety and Sound- 12 ness Act of 1992 (12 U.S.C. 4569) is amended by adding 13 at the end the following: 14 ‘‘(k) AUTHORIZATION OF APPROPRIATIONS.—There 15 is authorized to be appropriated to the Capital Magnet 16 Fund $2,500,000,000 for each of fiscal years 2020 17 through 2029.’’. 18 (c) PUBLIC HOUSING CAPITAL FUND.—Section 19 9(c)(2)(B) of the United States Housing Act of 1937 (42 20 U.S.C. 1437g(c)(2)(B)) is amended to read as follows: 21 ‘‘(B) CAPITAL FUND.—For allocations of 22 assistance from the Capital Fund, 23 $3,592,000,000 for fiscal year 2020.’’. 24 (d) INDIAN HOUSING BLOCK GRANT PROGRAM.— 25 Section 108 of the Native American Housing Assistance 26 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 9 •HR 1737 IH and Self-Determination Act of 1996 (25 U.S.C. 4117) is 1 amended— 2 (1) by striking ‘‘such sums as may be necessary 3 for each of fiscal years 2009 through 2013’’ and in- 4 serting ‘‘$2,500,000,000 for fiscal year 2020 and 5 such sums as may be necessary for each of fiscal 6 years 2021 through 2029’’; and 7 (2) by striking the second sentence. 8 (e) NATIVE HAWAIIAN HOUSING BLOCK GRANT PRO- 9 GRAM.—Section 824 of the Native American Housing As- 10 sistance and Self-Determination Act of 1996 (25 U.S.C. 11 4243) is amended by striking ‘‘such sums as may be nec- 12 essary for each of fiscal years 2001, 2002, 2003, 2004, 13 and 2005’’ and inserting ‘‘$8,000,000 for fiscal year 14 2020’’. 15 (f) RURAL HOUSING PROGRAMS.—Out of funds in 16 the Treasury not otherwise appropriated, there is appro- 17 priated for fiscal year 2020— 18 (1) to provide direct loans under section 502 of 19 the Housing Act of 1949 (42 U.S.C. 1472), 20 $140,000,000; 21 (2) to provide assistance under section 514 of 22 such Act (42 U.S.C. 1484), $28,000,000; 23 (3) to provide assistance under section 515 of 24 such Act (42 U.S.C. 1485), $180,000,000; 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 10 •HR 1737 IH (4) to provide assistance under section 516 of 1 such Act (42 U.S.C. 1486), $100,000,000; and 2 (5) to provide grants under section 523 of such 3 Act (42 U.S.C. 1490c), $75,000,000. 4 (g) MIDDLE CLASS HOUSING EMERGENCY FUND.— 5 (1) DEFINITION.—In this subsection, the term 6 ‘‘affordable rental housing unit’’ means a unit for 7 which monthly rent is 30 percent or less than the 8 monthly area median income. 9 (2) ESTABLISHMENT.—The Secretary of Hous- 10 ing and Urban Development shall establish and 11 manage a fund, to be known as the ‘‘Middle Class 12 Housing Emergency Fund’’, which shall be funded 13 with any amounts as may be appropriated, trans- 14 ferred, or credited to the Fund under any provision 15 law. 16 (3) GRANTS.—From amounts available in the 17 fund established under paragraph (2), the Secretary 18 of Housing and Urban Development shall award 19 grants on a competitive basis to State housing fi- 20 nance agencies located in a State in which— 21 (A) there is a shortage of affordable rental 22 housing units available to individuals with an 23 income that is at or below the area median in- 24 come and median rents have risen on average 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 11 •HR 1737 IH over the preceding 3 years substantially faster 1 than the area median income; or 2 (B) there is a shortage of housing units 3 available for sale that are affordable to individ- 4 uals with an income that is at or below the area 5 median income and median home prices have 6 risen on average over the preceding 3 years 7 substantially faster than the area median in- 8 come. 9 (4) USE OF FUNDS.—Grants received under 10 this subsection shall be used to fund— 11 (A) the construction of rental housing 12 units or units for purchase that are affordable 13 to residents making less than 120 percent of 14 the area median income; and 15 (B) measures to prevent tenant displace- 16 ment and harassment, including the provision 17 of legal advice and representation for tenants 18 facing eviction, enforcement of anti-harassment 19 laws, emergency rental assistance, and other 20 measures as specified by the Secretary of Hous- 21 ing and Urban Development. 22 (5) LABOR LAWS.— 23 (A) IN GENERAL.—All laborers and me- 24 chanics employed by contractors or subcontrac- 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 12 •HR 1737 IH tors in the performance of construction work fi- 1 nanced in whole or in part with a grant received 2 under this subsection shall be paid wages at 3 rates not less than those prevailing on similar 4 construction in the locality as determined by 5 the Secretary of Labor in accordance with sub- 6 chapter IV of chapter 31 of title 40, United 7 States Code (commonly known as the ‘‘Davis- 8 Bacon Act’’). 9 (B) EXCEPTION.—Subparagraph (A) shall 10 not apply with respect to— 11 (i) the rehabilitation of residential 12 property if the property contains less than 13 8 units; or 14 (ii) construction carried out by em- 15 ployees of the eligible entity receiving the 16 grant under this section. 17 (6) REGULATIONS.—The Secretary of Housing 18 and Urban Development shall promulgate regula- 19 tions to carry out this subsection, including with re- 20 spect to the metrics that the Secretary shall use to 21 determine eligibility for a grant under this sub- 22 section. 23 (7) APPROPRIATIONS.—Out of funds in the 24 Treasury not otherwise appropriated, there is appro- 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 13 •HR 1737 IH priated to the fund established under this subsection 1 $4,000,000,000 for fiscal year 2020. 2 SEC. 103. CONDITIONS FOR THE SALE OF REAL ESTATE- 3 OWNED PROPERTIES AND NON-PERFORMING 4 LOANS. 5 (a) FINDINGS.—Congress finds that— 6 (1) the Federal Housing Administration, the 7 Federal National Mortgage Association, and the 8 Federal Home Loan Mortgage Corporation provide 9 critical homeownership opportunities that greatly 10 benefit individuals, families and communities; and 11 (2) it is the purpose of this section to— 12 (A) preserve owner-occupied homes with 13 mortgages insured by the Federal Housing Ad- 14 ministration or purchased by the Federal Na- 15 tional Mortgage Association or the Federal 16 Home Loan Mortgage Corporation for contin- 17 ued use as owner-occupied homes; and 18 (B) direct that, upon the sale of those 19 properties or transfer of those mortgages, cer- 20 tain percentages of those properties are sold to 21 low- and moderate-income homeowners. 22 (b) LOANS INSURED BY THE FEDERAL HOUSING AD- 23 MINISTRATION.—Title II of the National Housing Act (12 24 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 14 •HR 1737 IH U.S.C. 1707 et seq.) is amended by adding at the end 1 the following: 2 ‘‘SEC. 259. SALE OF REAL ESTATE-OWNED PROPERTIES. 3 ‘‘(a) IN GENERAL.—Not later than 1 year after the 4 date of enactment of this section, the Secretary shall de- 5 velop programs within the Federal Housing Administra- 6 tion to ensure that not less than 75 percent of the single- 7 family residential properties that were acquired by the 8 Federal Housing Administration through foreclosure or 9 other transfer-related mortgages insured under this title 10 on the properties are sold— 11 ‘‘(1) directly to an owner-occupant; or 12 ‘‘(2) to community partners that will— 13 ‘‘(A) rehabilitate or develop the property; 14 and 15 ‘‘(B) sell the property to an owner-occu- 16 pant. 17 ‘‘(b) ANTI-PREDATORY FEATURE.—Unless the Sec- 18 retary provides prior approval, the Secretary shall prohibit 19 any purchaser of a real estate-owned property of the Fed- 20 eral Housing Administration from re-selling the property 21 within 15 years of purchase using a land installment con- 22 tract or through any other mechanism that does not trans- 23 fer title to the buyer at the time of sale. 24 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 15 •HR 1737 IH ‘‘SEC. 260. SALE OF NON-PERFORMING LOANS. 1 ‘‘(a) IN GENERAL.—Except as provided in this sec- 2 tion, the Secretary may not sell or transfer any mortgage 3 insured under this title that is secured by a single-family 4 residential property (in this section referred to as a ‘cov- 5 ered mortgage’). 6 ‘‘(b) CONDITIONS FOR SALE OR TRANSFER.— 7 ‘‘(1) IN GENERAL.—The Secretary— 8 ‘‘(A) may sell or transfer a covered mort- 9 gage only if— 10 ‘‘(i) the capital level of the Fund is 11 substantially below the capital ratio re- 12 quired under section 205(f)(4); 13 ‘‘(ii) the Secretary certifies that other 14 reasonable measures are not available to 15 restore the Fund to that capital ratio; and 16 ‘‘(iii) the Secretary complies with 17 paragraph (2)(C), if applicable; and 18 ‘‘(B) shall sell or transfer only such cov- 19 ered mortgages as are necessary to assist in 20 restoration of that capital ratio. 21 ‘‘(2) REQUIREMENTS FOR THE SECRETARY.— 22 ‘‘(A) IN GENERAL.—If the Secretary in- 23 tends to sell or transfer a covered mortgage, the 24 Secretary shall provide the current borrower 25 and all owners of record of the property secur- 26 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 16 •HR 1737 IH ing the covered mortgage, or require that the 1 current borrower and owners of record be pro- 2 vided, a separate written notice of the intent to 3 sell the covered mortgage that— 4 ‘‘(i) is mailed via certified and first 5 class mail not less than 90 days before the 6 date on which the loan is included in any 7 proposed sale; and 8 ‘‘(ii) includes— 9 ‘‘(I) a description of the loss 10 mitigation options of the Administra- 11 tion that are available to borrowers in 12 financial distress and the obligation of 13 servicers to consider borrowers in de- 14 fault for those options; 15 ‘‘(II) a description of the actions 16 that the servicer of the loan has taken 17 to review and implement those options 18 for the borrower; and 19 ‘‘(III) a description of the proce- 20 dures the borrower may use to contest 21 with the Secretary the compliance by 22 the servicer with that obligation. 23 ‘‘(B) JUDICIAL REVIEW.—The determina- 24 tion of the Secretary to authorize the sale of a 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 17 •HR 1737 IH mortgage insured under this title shall be re- 1 viewable under chapter 7 of title 5, United 2 States Code, for abuse of discretion and arbi- 3 trary and capricious agency action. 4 ‘‘(C) AUCTIONS.—The Secretary may not 5 sell any covered mortgage through any type of 6 non-performing loan sale auction program until 7 the Secretary issues rules, through the notice 8 and comment rule making procedures under 9 section 553 of title 5, United States Code, that 10 address essential aspects of any non-performing 11 loan sale program, including— 12 ‘‘(i) the method of selection of loans 13 for sale; 14 ‘‘(ii) notice to borrowers prior to in- 15 clusion of the loan in a sale; and 16 ‘‘(iii) review of loss mitigation status 17 prior to the sale, selection of eligible bid- 18 ders, loss mitigation guidelines applicable 19 to loan purchasers, and reporting require- 20 ments for purchasers. 21 ‘‘(3) CERTIFICATION REQUIREMENT FOR LEND- 22 ERS AND SERVICERS.— 23 ‘‘(A) CERTIFICATION.—As a condition to 24 payment of an insurance claim under this title 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 18 •HR 1737 IH in connection with any non-performing loan 1 sale, the lender or servicer of the loan shall pro- 2 vide the Secretary and the borrower with writ- 3 ten certification of the loss mitigation review 4 contained in the FHA Single Family Housing 5 Policy Handbook 4000.1, or any successor 6 handbook. 7 ‘‘(B) FALSE STATEMENTS.— 8 ‘‘(i) IN GENERAL.—Any false state- 9 ment provided in a certification described 10 in subparagraph (A) shall be a basis for— 11 ‘‘(I) recovery by the Secretary of 12 any amounts paid under the insurance 13 claim and any other penalties and 14 sanctions authorized under Federal 15 law; and 16 ‘‘(II) a private right of action by 17 the borrower against the lender and 18 servicer, with remedies to include 19 compensatory and punitive damages 20 and an assessment of costs and attor- 21 ney’s fees. 22 ‘‘(ii) TRANSFERS.—Unless a bona fide 23 purchaser has acquired title to the prop- 24 erty as a primary residence— 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 19 •HR 1737 IH ‘‘(I) a certification described in 1 subparagraph (A) that contains a 2 false statement shall be a basis for re- 3 voking the transfer of the property; 4 and 5 ‘‘(II) the pre-sale lender and 6 servicer of the property shall— 7 ‘‘(aa) resume servicing the 8 loan as a loan insured under this 9 title; and 10 ‘‘(bb) reimburse the Sec- 11 retary for any insurance claim 12 paid and all costs related to the 13 sale of the property. 14 ‘‘(4) REQUIREMENTS FOR PURCHASERS.— 15 ‘‘(A) IN GENERAL.—Each purchaser of a 16 covered mortgage shall offer the borrower on 17 the covered mortgage— 18 ‘‘(i) appropriate loss mitigation op- 19 tions, including affordable and sustainable 20 loan modifications; and 21 ‘‘(ii) the opportunity for a short sale 22 or a deed in lieu of foreclosure. 23 ‘‘(B) LOSS MITIGATION OPTIONS.—The 24 specific formula, calculations, waterfall steps, 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 20 •HR 1737 IH and other terms for appropriate loss mitigation 1 options described in subparagraph (A) shall be 2 published by the Secretary, made available to 3 the public, and included in a written notice 4 given to borrowers before any acceleration or 5 foreclosure is initiated after a loan sale. 6 ‘‘(5) REQUIREMENTS FOR TRANSFEREES.— 7 With respect to a transferee, including any subse- 8 quent transferee, of a covered mortgage that is sold 9 under this title— 10 ‘‘(A) the transferee shall certify in writing 11 to the Secretary that the transferee will comply 12 with the provisions of this section in the mar- 13 keting and transfer of any property received in 14 the disposition of any transferred loan; 15 ‘‘(B) the transferee shall provide to the 16 Secretary records documenting that the trans- 17 fers of those properties are in compliance with 18 this section; and 19 ‘‘(C) the failure of the Secretary or the 20 transferee to comply with the requirements 21 under this section for a loan in default shall be 22 a defense to foreclosure, and a transferee shall 23 not execute a foreclosure judgment or order of 24 sale, or conduct a foreclosure sale, until the 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 21 •HR 1737 IH transferee has complied with all requirements 1 under this section. 2 ‘‘(c) LIMITATIONS.—With respect to covered mort- 3 gages that are sold under this title and foreclosed upon 4 by the buyer, not less than 90 percent of the properties 5 that are the subject of the covered mortgages in an auc- 6 tion shall be— 7 ‘‘(1) sold to owner-occupants; 8 ‘‘(2) operated or transferred to an entity that 9 will operate the property as affordable rental hous- 10 ing for households below 80 percent of the area me- 11 dian income for a period of not less than 15 years; 12 or 13 ‘‘(3) transferred or donated to a nonprofit 14 agency that is certified by the Secretary and will re- 15 develop the property for owner occupancy or afford- 16 able rental housing. 17 ‘‘(d) PRIORITIZATION OF SALES.—The Secretary 18 shall implement policies, procedures, and controls to— 19 ‘‘(1) identify and recruit community partners; 20 ‘‘(2) engage in consultations with community 21 partners before the sale of a pool of covered mort- 22 gages under this title to determine whether that sale 23 can be designed to meet the specific needs of the 24 communities served by the community partners; and 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 22 •HR 1737 IH ‘‘(3) prioritize the sale of pools of single-family 1 mortgages to community partners by— 2 ‘‘(A) designing pools of covered mortgages 3 for direct sale to a community partner, the 4 price of which shall be set by the Secretary 5 based on a pricing model that considers— 6 ‘‘(i) the current fair market value of 7 the properties; and 8 ‘‘(ii) the potential impact of fore- 9 closures on those properties to the value of 10 other homes that secure mortgages insured 11 under this title in the same census tract; 12 or 13 ‘‘(B) in the case of an auction, if the win- 14 ning bid is not from a community partner, per- 15 mitting any community partner that bid during 16 that same auction to have a final opportunity to 17 enter a higher bid on the pool.’’. 18 (c) FANNIE MAE.—Section 302 of the Federal Na- 19 tional Mortgage Association Charter Act (12 U.S.C. 1717) 20 is amended by adding at the end the following: 21 ‘‘(d)(1) The corporation may not sell or transfer any 22 mortgage that is secured by a single-family residential 23 property (in this section referred to as a ‘covered mort- 24 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00022 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 23 •HR 1737 IH gage’) under this section unless the requirements of this 1 subsection are met. 2 ‘‘(2)(A) If the corporation intends to sell or transfer 3 a covered mortgage, the corporation shall provide the cur- 4 rent borrower and all owners of record of the property se- 5 curing the covered mortgage, or require that the current 6 borrower and owners of record be provided, a separate 7 written notice of the intent to sell the covered mortgage 8 that— 9 ‘‘(i) is mailed via certified and first class mail 10 not less than 90 days before the date on which the 11 loan is included in any proposed sale; and 12 ‘‘(ii) includes— 13 ‘‘(I) a description of the loss mitigation op- 14 tions of the corporation that are available to 15 borrowers in financial distress and the obliga- 16 tion of servicers to consider borrowers in de- 17 fault for those options; 18 ‘‘(II) a description of the actions that the 19 servicer of the loan has taken to review and im- 20 plement those options for the borrower; and 21 ‘‘(III) a description of the procedures the 22 borrower may use to contest with the corpora- 23 tion the compliance by the servicer with that 24 obligation. 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 24 •HR 1737 IH ‘‘(B) The determination of the corporation to author- 1 ize the sale of a mortgage under this section shall be re- 2 viewable under chapter 7 of title 5, United States Code, 3 for abuse of discretion and arbitrary and capricious agen- 4 cy action. 5 ‘‘(C) The corporation may not sell any covered mort- 6 gage through any type of non-performing loan sale auction 7 program until the corporation issues rules, through the no- 8 tice and comment rule making procedures under section 9 553 of title 5, United States Code, that address essential 10 aspects of any non-performing loan sale program, includ- 11 ing— 12 ‘‘(i) the method of selection of loans for sale; 13 ‘‘(ii) notice to borrowers prior to inclusion of 14 the loan in a sale; and 15 ‘‘(iii) review of loss mitigation status prior to 16 the sale, selection of eligible bidders, loss mitigation 17 guidelines applicable to loan purchasers, and report- 18 ing requirements for purchasers. 19 ‘‘(3)(A) Each purchaser of a covered mortgage shall 20 offer the borrower on the covered mortgage— 21 ‘‘(i) appropriate loss mitigation options, includ- 22 ing affordable and sustainable loan modifications; 23 and 24 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 25 •HR 1737 IH ‘‘(ii) the opportunity for a short sale or a deed 1 in lieu of foreclosure. 2 ‘‘(B) The specific formula, calculations, waterfall 3 steps, and other terms for appropriate loss mitigation op- 4 tions described in subparagraph (A) shall be published by 5 the corporation, made available to the public, and included 6 in a written notice given to borrowers before any accelera- 7 tion or foreclosure is initiated after a loan sale. 8 ‘‘(4) With respect to a transferee, including any sub- 9 sequent transferee, of a covered mortgage that is sold by 10 the corporation under this section— 11 ‘‘(A) the transferee shall certify in writing to 12 the corporation that the transferee will comply with 13 the provisions of this subsection in the marketing 14 and transfer of any property received in the disposi- 15 tion of any transferred loan; 16 ‘‘(B) the transferee shall provide to the corpora- 17 tion records documenting that the transfers of those 18 properties are in compliance with this subsection; 19 and 20 ‘‘(C) the failure of the corporation or the trans- 21 feree to comply with the requirements under this 22 subsection for a loan in default shall be a defense to 23 foreclosure, and a transferee shall not execute a 24 foreclosure judgment or order of sale, or conduct a 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 26 •HR 1737 IH foreclosure sale, until the transferee has complied 1 with all requirements under this subsection. 2 ‘‘(5) With respect to covered mortgages that are sold 3 by the corporation under this section and foreclosed upon 4 by the buyer, not less than 90 percent of the properties 5 that are the subject of the covered mortgages in an auc- 6 tion shall be— 7 ‘‘(A) sold to owner-occupants; 8 ‘‘(B) operated or transferred to an entity that 9 will operate the property as affordable rental hous- 10 ing for households below 80 percent of the area me- 11 dian income for a period of not less than 15 years; 12 or 13 ‘‘(C) transferred or donated to a nonprofit 14 agency that is certified by the corporation and will 15 redevelop the property for owner occupancy or af- 16 fordable rental housing. 17 ‘‘(6) The corporation shall implement policies, proce- 18 dures, and controls to— 19 ‘‘(A) identify and recruit community partners; 20 ‘‘(B) engage in consultations with community 21 partners before the sale of a pool of covered mort- 22 gages under this section to determine whether that 23 sale can be designed to meet the specific needs of 24 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 27 •HR 1737 IH the communities served by the community partners; 1 and 2 ‘‘(C) prioritize the sale of pools of single-family 3 mortgages to community partners by— 4 ‘‘(i) designing pools of covered mortgages 5 for direct sale to a community partner, the 6 price of which shall be set by the corporation 7 based on a pricing model that considers— 8 ‘‘(I) the current fair market value of 9 the properties; and 10 ‘‘(II) the potential impact of fore- 11 closures on those properties to the value of 12 other homes in the same census tract; or 13 ‘‘(III) in the case of an auction, if the 14 winning bid is not from a community part- 15 ner, permitting any community partner 16 that bid during that same auction to have 17 a final opportunity to enter a higher bid on 18 the pool.’’. 19 (d) FREDDIE MAC.—Section 305 of the Federal 20 Home Loan Mortgage Corporation Act (12 U.S.C. 1454) 21 is amended by adding at the end the following: 22 ‘‘(e)(1) The Corporation may not sell or transfer any 23 mortgage that is secured by a single-family residential 24 property (in this section referred to as a ‘covered mort- 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 28 •HR 1737 IH gage’) under this section unless the requirements of this 1 subsection are met. 2 ‘‘(2)(A) If the Corporation intends to sell or transfer 3 a covered mortgage, the Corporation shall provide the cur- 4 rent borrower and all owners of record of the property se- 5 curing the covered mortgage, or require that the current 6 borrower and owners of record be provided, a separate 7 written notice of the intent to sell the covered mortgage 8 that— 9 ‘‘(i) is mailed via certified and first class mail 10 not less than 90 days before the date on which the 11 loan is included in any proposed sale; and 12 ‘‘(ii) includes— 13 ‘‘(I) a description of the loss mitigation op- 14 tions of the Corporation that are available to 15 borrowers in financial distress and the obliga- 16 tion of servicers to consider borrowers in de- 17 fault for those options; 18 ‘‘(II) a description of the actions that the 19 servicer of the loan has taken to review and im- 20 plement those options for the borrower; and 21 ‘‘(III) a description of the procedures the 22 borrower may use to contest with the Corpora- 23 tion the compliance by the servicer with that 24 obligation. 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 29 •HR 1737 IH ‘‘(B) The determination of the Corporation to author- 1 ize the sale of a mortgage under this section shall be re- 2 viewable under chapter 7 of title 5, United States Code, 3 for abuse of discretion and arbitrary and capricious agen- 4 cy action. 5 ‘‘(C) The Corporation may not sell any covered mort- 6 gage through any type of non-performing loan sale auction 7 program until the Corporation issues rules, through the 8 notice and comment rule making procedures under section 9 553 of title 5, United States Code, that address essential 10 aspects of any non-performing loan sale program, includ- 11 ing— 12 ‘‘(i) the method of selection of loans for sale; 13 ‘‘(ii) notice to borrowers prior to inclusion of 14 the loan in a sale; and 15 ‘‘(iii) review of loss mitigation status prior to 16 the sale, selection of eligible bidders, loss mitigation 17 guidelines applicable to loan purchasers, and report- 18 ing requirements for purchasers. 19 ‘‘(3)(A) Each purchaser of a covered mortgage shall 20 offer the borrower on the covered mortgage— 21 ‘‘(i) appropriate loss mitigation options, includ- 22 ing affordable and sustainable loan modifications; 23 and 24 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00029 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 30 •HR 1737 IH ‘‘(ii) the opportunity for a short sale or a deed 1 in lieu of foreclosure. 2 ‘‘(B) The specific formula, calculations, waterfall 3 steps, and other terms for appropriate loss mitigation op- 4 tions described in subparagraph (A) shall be published by 5 the Corporation, made available to the public, and in- 6 cluded in a written notice given to borrowers before any 7 acceleration or foreclosure is initiated after a loan sale. 8 ‘‘(4) With respect to a transferee, including any sub- 9 sequent transferee, of a covered mortgage that is sold by 10 the Corporation under this section— 11 ‘‘(A) the transferee shall certify in writing to 12 the Corporation that the transferee will comply with 13 the provisions of this section in the marketing and 14 transfer of any property received in the disposition 15 of any transferred loan; 16 ‘‘(B) the transferee shall provide to the Cor- 17 poration records documenting that the transfers of 18 those properties are in compliance with this sub- 19 section; and 20 ‘‘(C) the failure of the Corporation or the trans- 21 feree to comply with the requirements under this 22 subsection for a loan in default shall be a defense to 23 foreclosure, and a transferee shall not execute a 24 foreclosure judgment or order of sale, or conduct a 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00030 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 31 •HR 1737 IH foreclosure sale, until the transferee has complied 1 with all requirements under this subsection. 2 ‘‘(5) With respect to covered mortgages that are sold 3 by the Corporation under this section and foreclosed upon 4 by the buyer, not less than 90 percent of the properties 5 that are the subject of the covered mortgages in an auc- 6 tion shall be— 7 ‘‘(A) sold to owner-occupants; 8 ‘‘(B) operated or transferred to an entity that 9 will operate the property as affordable rental hous- 10 ing for households below 80 percent of the area me- 11 dian income for a period of not less than 15 years; 12 or 13 ‘‘(C) transferred or donated to a nonprofit 14 agency that is certified by the Corporation and will 15 redevelop the property for owner occupancy or af- 16 fordable rental housing. 17 ‘‘(6) The Corporation shall implement policies, proce- 18 dures, and controls to— 19 ‘‘(A) identify and recruit community partners; 20 ‘‘(B) engage in consultations with community 21 partners before the sale of a pool of covered mort- 22 gages under this section to determine whether that 23 sale can be designed to meet the specific needs of 24 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 32 •HR 1737 IH the communities served by the community partners; 1 and 2 ‘‘(C) prioritize the sale of pools of single-family 3 mortgages to community partners by— 4 ‘‘(i) designing pools of covered mortgages 5 for direct sale to a community partner, the 6 price of which shall be set by the Corporation 7 based on a pricing model that considers— 8 ‘‘(I) the current fair market value of 9 the properties; and 10 ‘‘(II) the potential impact of fore- 11 closures on those properties to the value of 12 other homes in the same census tract; or 13 ‘‘(III) in the case of an auction, if the 14 winning bid is not from a community part- 15 ner, permitting any community partner 16 that bid during that same auction to have 17 a final opportunity to enter a higher bid on 18 the pool.’’. 19 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 33 •HR 1737 IH TITLE II—TAKING THE FIRST 1 STEPS TO REVERSE THE LEG- 2 ACY OF HOUSING DISCRIMI- 3 NATION AND GOVERNMENT 4 NEGLIGENCE 5 SEC. 201. DOWN PAYMENT ASSISTANCE PROGRAM FOR 6 COMMUNITIES FORMERLY SEGREGATED BY 7 LAW. 8 (a) FINDINGS.—Congress finds the following: 9 (1) For generations, buying a home has been 10 the primary way working families build wealth. 11 (2) A home is not only a place to live, but also 12 an asset that may appreciate, help fund a new busi- 13 ness, finance an education, or cover retirement ex- 14 penses. A home provides stability and financial pre- 15 dictability, which are important foundations for 16 prosperity and access to opportunity for a family. 17 (3) For decades, the Federal Government sub- 18 sidized homeownership—for White families. Until 19 the 1960s, the Federal Government systematically 20 denied African Americans and other marginalized 21 groups the ability to obtain mortgage credit, buy 22 homes, and build wealth for their families while sub- 23 sidizing the American dream for White families. 24 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00033 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 34 •HR 1737 IH (4) The Federal Government, through the 1 Home Owners’ Loan Corporation and the Federal 2 Housing Administration, standardized and institu- 3 tionalized discriminatory policies on the basis of 4 race, national origin, and religion that reflected 5 practices in the private sector and became a model 6 for their widespread adoption across the housing in- 7 dustry. 8 (5) Racist restrictive covenants and zoning ordi- 9 nances also robbed families of color of the oppor- 10 tunity to live and build opportunity for their families 11 in the community of their choice. 12 (6) In the years before the 2008 financial crisis, 13 lenders targeted borrowers of color with abusive 14 loans while government regulators sat on their 15 hands, further extracting wealth from these same 16 communities. 17 (7) The legacy of housing discrimination and 18 regulatory negligence is a contributor to a large and 19 growing gap in wealth and outcomes between Black 20 and White families. The median income White fam- 21 ily in the United States has almost 10 times the 22 wealth of the median income Black family in the 23 United States. The gap between the White home- 24 ownership rate and the Black homeownership rate is 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00034 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 35 •HR 1737 IH bigger today than it was when housing discrimina- 1 tion was legal. Seventy-five percent of formerly red- 2 lined communities are still low-income and 66 per- 3 cent are still minority communities. 4 (8) The purpose of this section is for the Fed- 5 eral Government to take the first step toward ad- 6 dressing the racial wealth gap that it contributed to 7 creating by helping individuals or descendants of in- 8 dividuals who were harmed by housing discrimina- 9 tion or negligence by the Federal Government. 10 (b) DEFINITIONS.—In this section: 11 (1) ELIGIBLE RESIDENT.—The term ‘‘eligible 12 resident’’ means a resident of a geographic area, as 13 defined by the Secretary by regulation under sub- 14 section (g), who— 15 (A) is a first-time homebuyer; 16 (B) has an income that is less than 120 17 percent of the area median income; and 18 (C)(i) resided in that geographic area dur- 19 ing the 4-year period preceding the date of en- 20 actment of this Act; 21 (ii) resided in that geographic area for a 22 period of 4 years before moving out of the geo- 23 graphic area subsequent to a foreclosure, short 24 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00035 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 36 •HR 1737 IH sale, or deed in lieu of foreclosure on a home 1 that— 2 (I) was the primary residence of the 3 resident; and 4 (II) was purchased or refinanced dur- 5 ing the period beginning on January 1, 6 2001, and ending on December 30, 2008; 7 or 8 (iii) resided in that geographic area for a 9 period of 4 years before moving out of the geo- 10 graphic area due to a major disaster declared 11 by the President or a State, territorial, or Trib- 12 al government. 13 (2) FIRST-TIME HOMEBUYER.—The term ‘‘first- 14 time homebuyer’’ means an individual (and if mar- 15 ried, the spouse of the individual) who— 16 (A) has had no ownership in a principal 17 residence during the 3-year period ending on 18 the date of purchase of the property; or 19 (B) who surrendered an ownership interest 20 in a principal residence during the 3-year pe- 21 riod ending on the date of purchase of the prop- 22 erty as part of a divorce proceeding. 23 (3) SECRETARY.—The term ‘‘Secretary’’ means 24 the Secretary of Housing and Urban Development. 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00036 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 37 •HR 1737 IH (c) ESTABLISHMENT.—There is established in the 1 Office of Housing of the Department of Housing and 2 Urban Development a fund, to be administered by the Sec- 3 retary, that shall be used— 4 (1) to provide grants to eligible residents to 5 purchase homes; 6 (2) for outreach to financial institutions in tar- 7 geted areas and eligible residents, including for the 8 administration of that outreach; 9 (3) for counseling or financial education admin- 10 istered by counseling agencies approved by the Sec- 11 retary in order to ensure sustainable homeowner- 12 ship; 13 (4) to create and maintain the database de- 14 scribed in subsection (g)(3); and 15 (5) to maintain any records required to imple- 16 ment this section. 17 (d) GRANT AMOUNT.—Eligible residents may receive 18 a grant from the fund established under subsection (c) in 19 an amount equal to— 20 (1) not more than 3.5 percent of the appraised 21 value of the property to be purchased; or 22 (2) if the appraised value is more than the prin- 23 cipal obligation amount limitation for mortgages in- 24 sured under title II of the National Housing Act (12 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00037 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 38 •HR 1737 IH U.S.C. 1707 et seq.), 3.5 percent of the maximum 1 principal obligation limitation for the property to be 2 purchased. 3 (e) FHA LOAN.—An eligible resident is not required 4 to obtain a mortgage that is insured under title II of the 5 National Housing Act (12 U.S.C. 1707 et seq.) as a condi- 6 tion of receiving a grant under this section. 7 (f) GEOGRAPHIC AREA.—An eligible resident is not 8 required to purchase a home within the geographic area 9 described in subsection (b)(1)(C) as a condition of receiv- 10 ing a grant under this section. 11 (g) REGULATIONS AND DATABASE.—Not later than 12 1 year after the date of enactment of this Act, the Sec- 13 retary shall— 14 (1) in consultation with interested parties, in- 15 cluding housing counseling agencies approved by the 16 Secretary and individuals or groups with expertise in 17 fair housing, finalize regulations relating to the use 18 of the fund established under subsection (c), includ- 19 ing defining the geographic areas in which residents 20 are eligible to receive grants through the fund, which 21 shall include— 22 (A) census tracts graded as ‘‘hazardous’’ 23 or ‘‘definitely declining’’in maps drawn by the 24 Home Owners’ Loan Corporation that are, as of 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00038 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 39 •HR 1737 IH the date of enactment of this Act, low-income 1 communities; 2 (B) census tracts that were designated for 3 non-White citizens in jurisdictions that histori- 4 cally had racially segregated zoning codes and 5 are, as of the date of enactment of this Act, 6 low-income communities; and 7 (C) census tracts that are racially or eth- 8 nically concentrated areas of poverty, which 9 shall mean a census tract— 10 (i) with a non-White population of 50 11 percent or more; and 12 (ii)(I) in which not less than 40 per- 13 cent of families living in the census tract 14 have incomes that are at or below the pov- 15 erty line; or 16 (II) in which the average tract poverty 17 rate is 3 or more times the average tract 18 poverty tract for the metropolitan or 19 micropolitan area; 20 (2) finalize regulations relating to the disburse- 21 ment of funds under this section to ensure that eligi- 22 ble residents are able to receive funds before the 23 closing date for their home, which may include cre- 24 ating a program that allows a lender to be reim- 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00039 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 40 •HR 1737 IH bursed by the fund established under subsection (c) 1 if the lender— 2 (A) provides the eligible resident with 3 funds for the closing; or 4 (B) allows eligible residents to be 5 preapproved to receive assistance under this 6 section when arranging financing for their 7 home; 8 (3) create a publicly accessible database that al- 9 lows individuals, real estate professionals, and lend- 10 ers to determine whether a borrower is eligible for 11 assistance under this section; and 12 (4) establish methods to verify that an indi- 13 vidual is an eligible resident. 14 (h) APPROPRIATIONS.—Out of funds in the Treasury 15 not otherwise appropriated, there is appropriated to the 16 fund established under subsection (c) such sums as may 17 be necessary for each of fiscal years 2020 through 2029 18 to provide grants under this section and to carry out con- 19 sumer education efforts related to this section. 20 (i) INCLUSION OF PROGRAM IN HOME BUYING IN- 21 FORMATION BOOKLETS.—Section 5(b) of the Real Estate 22 Settlement Procedures Act of 1974 (12 U.S.C. 2604(b)) 23 is amended by inserting after paragraph (14) the fol- 24 lowing: 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00040 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 41 •HR 1737 IH ‘‘(15) Information relating to the down pay- 1 ment assistance program established under section 2 201 of the American Housing and Economic Mobil- 3 ity Act of 2019.’’. 4 (j) INCLUSION OF PROGRAM AS MORTGAGE PROD- 5 UCT.—Section 203(f)(1) of the National Housing Act (12 6 U.S.C. 1709(f)(1)) is amended by inserting ‘‘, including 7 the down payment assistance program established under 8 section 201 of the American Housing and Economic Mo- 9 bility Act of 2019,’’ after ‘‘mortgage products’’. 10 SEC. 202. FORMULA GRANT PROGRAM FOR COMMUNITIES 11 THAT HAVE NOT RECOVERED FROM THE FI- 12 NANCIAL CRISIS. 13 (a) ESTABLISHMENT.—The Secretary of Housing 14 and Urban Development shall establish a formula grant 15 program to provide funding to States to assist borrowers 16 with negative equity in their primary residence through— 17 (1) measures that provide funds to borrowers 18 to— 19 (A) pay down arrears on an otherwise af- 20 fordable loan; 21 (B) pay down arrears or principal on a 22 loan in order to qualify for a loan modification 23 that will allow the borrower to keep their home; 24 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00041 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 42 •HR 1737 IH (C) pay off the entire or pay down part of 1 a second mortgage or home equity line of cred- 2 it; 3 (D) pay off a small-dollar mortgage; 4 (E) pay delinquent taxes and tax liens; 5 (F) pay off delinquent water or sewer bills 6 and liens; and 7 (G) pay for home repairs or maintenance 8 or for modifications to bring the home into 9 compliance with any applicable codes; and 10 (2) programs to purchase or rehabilitate vacant 11 land and foreclosed homes to enhance neighborhood 12 property values. 13 (b) FORMULA.—The Secretary of Housing and 14 Urban Development shall distribute amounts under this 15 section based on the number of borrowers in the State 16 with a primary residence with negative equity. 17 (c) AUTHORIZATION OF APPROPRIATIONS.—There is 18 authorized to be appropriated to carry out this section 19 $2,000,000,000 for fiscal year 2020. 20 SEC. 203. STRENGTHENING THE COMMUNITY REINVEST- 21 MENT ACT OF 1977. 22 (a) SHORT TITLE.—This section may be cited as the 23 ‘‘Community Reinvestment Reform Act of 2019’’. 24 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00042 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 43 •HR 1737 IH (b) AMENDMENTS TO THE COMMUNITY REINVEST- 1 MENT ACT OF 1977.—The Community Reinvestment Act 2 of 1977 (12 U.S.C. 2901 et seq.) is amended— 3 (1) by amending sections 802 and 803 (12 4 U.S.C. 2901, 2902) to read as follows: 5 ‘‘SEC. 802. FINDINGS AND PURPOSE. 6 ‘‘(a) FINDINGS.—Congress finds that— 7 ‘‘(1) regulated financial institutions are re- 8 quired by law to demonstrate that they serve the 9 convenience and needs of the communities in which 10 they are chartered or do business, in particular low- 11 and moderate-income communities; 12 ‘‘(2) the convenience and needs of communities 13 include the need for credit services, deposit services, 14 transaction services, other financial services, and 15 community development loans and investments; and 16 ‘‘(3) regulated financial institutions have a con- 17 tinuing and affirmative obligation to meet the credit 18 or other financial needs of the local communities in 19 which they are chartered or do business. 20 ‘‘(b) PURPOSE.—It is the purpose of this title to re- 21 quire each appropriate Federal financial supervisory agen- 22 cy to use its authority when examining regulated financial 23 institutions to ensure that those institutions meet the 24 credit or other financial needs of the local communities 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00043 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 44 •HR 1737 IH in which they are chartered or do business consistent with 1 the safe and sound operation of those institutions. 2 ‘‘SEC. 803. DEFINITIONS. 3 ‘‘In this title: 4 ‘‘(1) APPLICATION FOR A DEPOSIT FACILITY.— 5 The term ‘application for a deposit facility’ means 6 an application to the appropriate Federal financial 7 supervisory agency otherwise required under Federal 8 law or regulations thereunder for— 9 ‘‘(A) a charter for a national bank or Fed- 10 eral savings and loan association; 11 ‘‘(B) deposit insurance in connection with 12 a newly chartered State bank, savings bank, 13 savings and loan association, or similar institu- 14 tion; 15 ‘‘(C) the establishment of a domestic 16 branch or other facility with the ability to ac- 17 cept deposits of a regulated financial institu- 18 tion; 19 ‘‘(D) the relocation of the home office or a 20 branch office of a regulated financial institu- 21 tion; 22 ‘‘(E) the merger or consolidation with, the 23 acquisition of the assets of, or the assumption 24 of the liabilities of a regulated financial institu- 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00044 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 45 •HR 1737 IH tion requiring approval under section 18(c) of 1 the Federal Deposit Insurance Act (12 U.S.C. 2 1828(c)); or 3 ‘‘(F) the acquisition of shares in, or the as- 4 sets of, a regulated financial institution requir- 5 ing approval under section 3 of the Bank Hold- 6 ing Company Act of 1956 (12 U.S.C. 1842). 7 ‘‘(2) APPROPRIATE FEDERAL BANKING AGEN- 8 CY.—The term ‘appropriate Federal banking agency’ 9 has the meaning given the term in section 3 of the 10 Federal Deposit Insurance Act (12 U.S.C. 1813). 11 ‘‘(3) APPROPRIATE FEDERAL FINANCIAL SU- 12 PERVISORY AGENCY.—The term ‘appropriate Fed- 13 eral financial supervisory agency’ means— 14 ‘‘(A) the appropriate Federal banking 15 agency with respect to depository institutions 16 and depository institution holding companies; 17 and 18 ‘‘(B) the Bureau of Consumer Financial 19 Protection with respect to any covered person 20 supervised by the Bureau pursuant to section 21 1024 of the Dodd-Frank Wall Street Reform 22 and Consumer Protection Act (12 U.S.C. 23 5514). 24 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00045 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 46 •HR 1737 IH ‘‘(4) ASSESSMENT AREA.—The term ‘assess- 1 ment area’ means, with respect to a regulated finan- 2 cial institution, each community, including a State, 3 metropolitan area, and urban or rural county, in 4 which the institution— 5 ‘‘(A) maintains deposit-taking branches, 6 automated teller machines, or retail offices; 7 ‘‘(B) is represented by an agent; 8 ‘‘(C) issues a significant number of loans 9 or other products relative to the total number 10 of loans or other products made by the institu- 11 tion; 12 ‘‘(D) has issued not less than 75 percent 13 of the loans of the institution; or 14 ‘‘(E) has conducted not less than 75 per- 15 cent of the business of the institution. 16 ‘‘(5) COMMUNITY BENEFITS PLAN.—The term 17 ‘community benefits plan’ means a plan that pro- 18 vides measurable goals for future amounts of safe 19 and sound loans, investments, services, and other fi- 20 nancial products for low- and moderate-income com- 21 munities and other distressed or underserved com- 22 munities. 23 ‘‘(6) COMMUNITY DEVELOPMENT.—The term 24 ‘community development’ means— 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00046 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 47 •HR 1737 IH ‘‘(A) affordable housing for low- or mod- 1 erate-income individuals and avoidance of pat- 2 terns of lending resulting in the loss of afford- 3 able housing units; 4 ‘‘(B) community development services, in- 5 cluding counseling and successful mortgage or 6 loan modifications of delinquent loans; 7 ‘‘(C) activities that promote integration; 8 ‘‘(D) activities that promote economic de- 9 velopment by financing small businesses or 10 farms that meet the size eligibility requirements 11 of the development company or small business 12 investment company programs under section 13 121.301 of title 13, Code of Federal Regula- 14 tions, or any successor regulation, with an em- 15 phasis on small businesses that have gross an- 16 nual revenues of not more than $1,000,000; 17 ‘‘(E) activities that revitalize or stabilize— 18 ‘‘(i) low- or moderate-income geog- 19 raphies; 20 ‘‘(ii) designated disaster areas; 21 ‘‘(iii) distressed or underserved non- 22 metropolitan middle-income geographies 23 designated by the Federal Financial Insti- 24 tutions Examination Council, based on— 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00047 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 48 •HR 1737 IH ‘‘(I) rates of poverty, unemploy- 1 ment, and population loss; or 2 ‘‘(II) population size, density, 3 and dispersion, if those activities help 4 to meet essential community needs, 5 including the needs of low- and mod- 6 erate-income individuals; or 7 ‘‘(iv) other distressed or underserved 8 communities; or 9 ‘‘(F) activities that promote physical, envi- 10 ronmental, and sensory accessibility in housing 11 stock that is integrated into the community. 12 ‘‘(7) DEPOSITORY INSTITUTION; DEPOSITORY 13 INSTITUTION HOLDING COMPANY.—The terms ‘de- 14 pository institution’ and ‘depository institution hold- 15 ing company’ have the meanings given those terms 16 in section 3 of the Federal Deposit Insurance Act 17 (12 U.S.C. 1813). 18 ‘‘(8) ENTIRE COMMUNITY.—The term ‘entire 19 community’ means all of the assessment areas of a 20 regulated financial institution. 21 ‘‘(9) ENUMERATED CONSUMER LAWS.—The 22 term ‘enumerated consumer laws’ has the meaning 23 given the term in section 1002 of the Consumer Fi- 24 nancial Protection Act of 2010 (12 U.S.C. 5481). 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00048 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 49 •HR 1737 IH ‘‘(10) GEOGRAPHY.—The term ‘geography’ 1 means a census tract delineated by the Bureau of 2 the Census in the most recent decennial census. 3 ‘‘(11) INSURED DEPOSITORY INSTITUTION.— 4 The term ‘insured depository institution’ has the 5 meaning given the term in section 3 of the Federal 6 Deposit Insurance Act (12 U.S.C. 1813). 7 ‘‘(12) OTHER DISTRESSED OR UNDERSERVED 8 COMMUNITY.—The term ‘other distressed or under- 9 served community’ means an area that, according to 10 a periodic review and data analysis by the appro- 11 priate Federal financial supervisory agencies on an 12 interagency basis through the Federal Financial In- 13 stitutions Examination Council, is experiencing eco- 14 nomic hardship or is underserved by financial insti- 15 tutions. 16 ‘‘(13) REGULATED FINANCIAL INSTITUTION.— 17 The term ‘regulated financial institution’ means— 18 ‘‘(A) an insured depository institution; 19 ‘‘(B) a depository institution holding com- 20 pany; and 21 ‘‘(C) a U.S. nonbank mortgage originator. 22 ‘‘(14) U.S. NONBANK MORTGAGE ORIGI- 23 NATOR.—The term ‘U.S. nonbank mortgage origi- 24 nator’ means a covered person subject to section 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00049 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 50 •HR 1737 IH 1024 of the Dodd-Frank Wall Street Reform and 1 Consumer Protection Act (12 U.S.C. 5514) that of- 2 fers or provides— 3 ‘‘(A) origination of loans secured by real 4 estate for use by consumers primarily for per- 5 sonal, family, or household purposes; or 6 ‘‘(B) loan modification or foreclosure relief 7 services in connection with a loan described in 8 subparagraph (A).’’; 9 (2) in section 804 (12 U.S.C. 2903)— 10 (A) by redesignating subsections (c) and 11 (d) as subsections (f) and (g), respectively; 12 (B) by striking subsections (a) and (b) and 13 inserting the following: 14 ‘‘(a) DEPOSITORY INSTITUTIONS AND BANK HOLD- 15 ING COMPANIES.—In connection with its examination of 16 a regulated financial institution other than a U.S. 17 nonbank mortgage originator, the appropriate Federal fi- 18 nancial supervisory agency shall perform the following: 19 ‘‘(1) Assess the record of the institution in 20 meeting the credit or other financial needs of its en- 21 tire community, in particular low- and moderate-in- 22 come people and communities, and other distressed 23 or underserved communities, consistent with the safe 24 and sound operation of the institution. 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00050 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 51 •HR 1737 IH ‘‘(2) Assess the effectiveness of the following 1 activities in meeting the credit or other financial 2 needs of the assessment areas of the institution, con- 3 sistent with the safe and sound operation of the in- 4 stitution: 5 ‘‘(A) Retail lending, including home, small 6 business, consumer, and other lending and fi- 7 nancial products, that responds to credit needs 8 or other financial needs. 9 ‘‘(B) Community development lending and 10 investments, which may include a consideration 11 of— 12 ‘‘(i) the origination of loans and other 13 efforts by the institution to assist existing 14 low- and moderate-income residents to re- 15 main in affordable housing in their com- 16 munity; and 17 ‘‘(ii) the origination of loans by the 18 institution that result in the construction, 19 rehabilitation, or preservation of affordable 20 housing units. 21 ‘‘(C) Retail financial services and commu- 22 nity development services. 23 ‘‘(3) With respect to its evaluation of an appli- 24 cation for a deposit facility by the institution— 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00051 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 52 •HR 1737 IH ‘‘(A) consider the record described in para- 1 graph (1), the overall rating of the institution 2 under this section, and any improvement plans 3 submitted pursuant to this section; 4 ‘‘(B) provide an opportunity for public 5 comment for a period of not less than 60 days; 6 ‘‘(C) consider changes in the community 7 reinvestment performance of the institution 8 since the most recent rating under this section 9 by the appropriate Federal financial supervisory 10 agency; and 11 ‘‘(D) require— 12 ‘‘(i) a demonstration of public benefit, 13 including a community benefits plan with 14 measurable goals regarding increasing re- 15 sponsible lending and other financial prod- 16 ucts; 17 ‘‘(ii) that the institution consult with 18 community-based organizations and other 19 community stakeholders in developing the 20 community benefits plan; and 21 ‘‘(iii) a public hearing for any institu- 22 tion that has a received a ‘need-to-improve’ 23 or ‘sufficient’ grade in any individual as- 24 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00052 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 53 •HR 1737 IH sessment area during the most recent ex- 1 amination. 2 ‘‘(b) U.S. NONBANK MORTGAGE ORIGINATOR.—In 3 connection with its examination of a U.S. nonbank mort- 4 gage originator, the appropriate Federal financial super- 5 visory agency shall perform the following: 6 ‘‘(1) Assess the record of the U.S. nonbank 7 mortgage originator in meeting the credit or other 8 financial needs of its entire community, in particular 9 low-income and moderate-income people and commu- 10 nities and other distressed or underserved commu- 11 nities, consistent with the safe and sound operation 12 of the U.S. nonbank mortgage originator. 13 ‘‘(2) Assess, as appropriate, the following activi- 14 ties in the assessment areas of the U.S. nonbank 15 mortgage originator: 16 ‘‘(A) Retail lending, including home loans. 17 ‘‘(B) Community development services. 18 ‘‘(C) Community development lending and 19 investments, which may include a consideration 20 of— 21 ‘‘(i) the origination of loans and other 22 efforts by the institution to assist existing 23 low- and moderate-income residents to re- 24 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00053 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 54 •HR 1737 IH main in affordable housing in their com- 1 munity; 2 ‘‘(ii) the origination of loans by the 3 institution that result in the construction, 4 rehabilitation or preservation of affordable 5 housing units; and 6 ‘‘(iii) investments in or loans to com- 7 munity development financial institutions 8 (as defined in section 103 of the Commu- 9 nity Development Banking and Financial 10 Institutions Act of 1994 (12 U.S.C. 11 4702)), community development corpora- 12 tions (as defined in section 613 of the 13 Community Economic Development Act of 14 1981 (42 U.S.C. 9802)), and other non- 15 profit organizations serving the housing 16 and development needs of the community. 17 ‘‘(3) With respect to its evaluation of an appli- 18 cation for a deposit facility by the U.S. nonbank 19 mortgage originator— 20 ‘‘(A) consider the record described in para- 21 graph (1), the overall rating of the U.S. 22 nonbank mortgage originator under this sec- 23 tion, and any improvement plans submitted 24 pursuant to this section; 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00054 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 55 •HR 1737 IH ‘‘(B) provide an opportunity for public 1 comment for a period of not less than 60 days; 2 ‘‘(C) consider changes in the community 3 reinvestment performance of the U.S. nonbank 4 mortgage originator since the most recent rat- 5 ing under this section by the appropriate Fed- 6 eral financial supervisory agency; and 7 ‘‘(D) require— 8 ‘‘(i) a demonstration that granting the 9 application for a deposit facility is in the 10 public interest, which shall include a sub- 11 mission of a community benefits plan by 12 the U.S. nonbank mortgage originator to 13 the appropriate Federal financial super- 14 visory agency; 15 ‘‘(ii) that the U.S. nonbank mortgage 16 originator consult with community-based 17 organizations and other community stake- 18 holders in developing the community bene- 19 fits plan; and 20 ‘‘(iii) a public hearing for any U.S. 21 nonbank mortgage originator that has a 22 received a ‘need-to-improve’ or ‘sufficient’ 23 grade in any individual assessment area 24 during the most recent examination. 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00055 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 56 •HR 1737 IH ‘‘(c) REQUIREMENTS.— 1 ‘‘(1) IN GENERAL.—In connection with its ex- 2 amination of a regulated financial institution under 3 subsection (a) or (b), the appropriate Federal finan- 4 cial supervisory agency shall— 5 ‘‘(A) consider public comments received by 6 the appropriate Federal financial supervisory 7 agency regarding the record of the institution in 8 meeting the credit or other financial needs of 9 its entire community, including low- and mod- 10 erate-income communities; and 11 ‘‘(B) require an improvement plan for an 12 institution that receives a rating of ‘sufficient’ 13 or lower on the written evaluation of the insti- 14 tution, or such a rating in any individual as- 15 sessment area, and require the improvement 16 plan to result in the reasonable likelihood that 17 the institution will obtain a rating of at least 18 ‘satisfactory record of meeting community cred- 19 it or other financial needs’ in the relevant meas- 20 ure on the next examination. 21 ‘‘(2) IMPROVEMENT PLAN.— 22 ‘‘(A) IN GENERAL.—A regulated financial 23 institution that is required to submit an im- 24 provement plan required under paragraph 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00056 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 57 •HR 1737 IH (1)(B) shall submit the plan in writing to the 1 appropriate Federal financial supervisory agen- 2 cy not later than 90 days after receiving notice 3 that the regulated financial institution is re- 4 quired to submit the plan. 5 ‘‘(B) PUBLIC COMMENT.—Upon receipt of 6 an improvement plan of a regulated financial 7 institution required under paragraph (1)(B), 8 the appropriate Federal financial supervisory 9 agency shall— 10 ‘‘(i) make the plan available to the 11 public for review and comment for a period 12 of not less than 60 days; and 13 ‘‘(ii) require the regulated financial 14 institution to revise, as appropriate, the 15 improvement plan in response to the public 16 comments received under the public review 17 and comment period described in clause (i) 18 and submit the plan to the appropriate 19 Federal financial supervisory agency not 20 later than 60 days after the end of that pe- 21 riod. 22 ‘‘(3) EXAMINATION OF CERTAIN REGULATED 23 FINANCIAL INSTITUTIONS.—In the case of a regu- 24 lated financial institution whose lending or other 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00057 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 58 •HR 1737 IH business is not clustered in geographical areas and 1 is thinly dispersed across the country, the institution 2 shall— 3 ‘‘(A) be evaluated under subsection (a) or 4 (b), as applicable— 5 ‘‘(i) by considering the effectiveness of 6 the institution in serving customers or bor- 7 rowers, with a special emphasis on low- 8 and moderate-income individuals across the 9 country regardless of where the individuals 10 reside; and 11 ‘‘(ii) based on objective thresholds de- 12 veloped by the appropriate Federal finan- 13 cial supervisory agencies to clarify when 14 lending or other business is dispersed 15 across the country and not clustered in 16 distinct geographical areas, which may in- 17 clude low levels of lending or other finan- 18 cial products across States or other areas; 19 and 20 ‘‘(B) meet the needs of other distressed or 21 underserved communities. 22 ‘‘(d) CONSIDERATION.—Remediation of consumers 23 pursuant to an order by an court or administrative body 24 or a settlement with a government agency or a private 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00058 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 59 •HR 1737 IH party shall not be considered in an assessment conducted 1 under subsection (a)(2) or (b)(2). 2 ‘‘(e) RULE OF CONSTRUCTION.—An evaluation of a 3 bank holding company under this section shall incorporate 4 evaluations of subsidiary regulated financial institutions 5 made by the appropriate Federal financial supervisory 6 agency of each subsidiary, if applicable.’’; 7 (C) in subsection (f), as so redesignated— 8 (i) by striking paragraph (2); 9 (ii) by redesignating paragraph (3) as 10 paragraph (2); and 11 (iii) in paragraph (2), as so redesig- 12 nated, by striking subparagraph (C); and 13 (D) in subsection (g), as so redesignated, 14 by striking ‘‘subsection (a)’’ and inserting ‘‘sub- 15 sections (a) and (b)’’; 16 (3) in section 807 (12 U.S.C. 2906)— 17 (A) in subsection (a)— 18 (i) by striking ‘‘an insured depository 19 institution’’ and inserting ‘‘a regulated fi- 20 nancial institution’’; and 21 (ii) by inserting ‘‘or financial’’ after 22 ‘‘credit’’; 23 (B) in subsection (b)— 24 (i) in paragraph (1)— 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00059 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 60 •HR 1737 IH (I) in subparagraph (A)— 1 (aa) in clause (ii), by strik- 2 ing ‘‘and’’ at the end; 3 (bb) by redesignating clause 4 (iii) as clause (iv); and 5 (cc) by inserting after clause 6 (ii) the following: 7 ‘‘(iii) disclose whether the institution en- 8 gaged in acts or practices that the Bureau of 9 Consumer Financial Protection has determined, 10 and has publicly disclosed, violate the enumer- 11 ated consumer laws; and’’; and 12 (II) by striking subparagraph (B) 13 and inserting the following: 14 ‘‘(B) METROPOLITAN AREA DISTINCTIONS.— 15 The information required under clauses (i) and (ii) 16 of subparagraph (A) shall be presented separately 17 for each assessment area. 18 ‘‘(C) TREATMENT WITH RESPECT TO VIOLA- 19 TIONS OF ENUMERATED CONSUMER LAWS.—If a 20 regulated financial institution has engaged in acts or 21 practices that the appropriate Federal financial su- 22 pervisory agency has determined to be unfair, decep- 23 tive, or abusive or acts or practices that violate enu- 24 merated consumer laws intended to ensure the fair, 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00060 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 61 •HR 1737 IH equitable, and nondiscriminatory access to credit for 1 individuals and communities that are enforced by 2 the Bureau of Consumer Financial Protection or 3 other Federal or State agencies, the written evalua- 4 tion shall be negatively influenced in a manner com- 5 mensurate with the extent of the harm suffered by 6 those individuals and communities.’’; 7 (ii) in paragraph (2)— 8 (I) by striking subparagraphs 9 (A), (B), (C), and (D) and inserting 10 the following: 11 ‘‘(A) ‘Outstanding record of meeting com- 12 munity credit or other financial needs’. 13 ‘‘(B) ‘Satisfactory record of meeting com- 14 munity credit or other financial needs’. 15 ‘‘(C) ‘Sufficient record of meeting commu- 16 nity credit or other financial needs’. 17 ‘‘(D) ‘Needs to improve record of meeting 18 community credit or other financial needs’. 19 ‘‘(E) ‘Substantial noncompliance in meet- 20 ing community credit or other financial 21 needs’.’’; and 22 (iii) by inserting after the flush text 23 following paragraph (2) the following: 24 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00061 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 62 •HR 1737 IH ‘‘(3) ADDITIONAL AUTHORITY.—The appro- 1 priate Federal financial supervisory agencies may— 2 ‘‘(A) alter the ratings under this sub- 3 section to change or include additional ratings; 4 and 5 ‘‘(B) develop an accompanying point sys- 6 tem that includes ranges for each rating cat- 7 egory under paragraph (2).’’; 8 (C) by redesignating subsection (e) as sub- 9 section (f); and 10 (D) by inserting after subsection (d) the 11 following: 12 ‘‘(e) APPEALS OF RATING.—If a regulated financial 13 institution appeals the assigned rating under this section, 14 the appropriate Federal financial supervisory agency shall 15 post a public notice of the appeal on the website of the 16 appropriate Federal financial supervisory agency.’’; and 17 (4) by adding at the end the following: 18 ‘‘SEC. 810. DATA COLLECTION AND REPORTING REQUIRE- 19 MENTS. 20 ‘‘(a) DATA COLLECTION.— 21 ‘‘(1) SMALL BUSINESS AND SMALL FARM 22 LOANS.—Each regulated financial institution shall 23 collect and maintain in machine readable form, as 24 prescribed by the appropriate Federal financial su- 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00062 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 63 •HR 1737 IH pervisory agency, until the completion of the next ex- 1 amination under this title, the following data for 2 each small business or small farm loan originated or 3 purchased by the regulated financial institution: 4 ‘‘(A) A unique number or alpha-numeric 5 symbol that can be used to identify the relevant 6 loan. 7 ‘‘(B) The loan amount at origination. 8 ‘‘(C) The loan location. 9 ‘‘(D) An indicator whether the loan was to 10 a business or farm with gross annual revenues 11 of $1,000,000 or less. 12 ‘‘(2) CONSUMER LOANS.—Each regulated finan- 13 cial institution shall collect and maintain in machine 14 readable form, as prescribed by the appropriate Fed- 15 eral financial supervisory agency, data for consumer 16 loans originated or purchased by the regulated fi- 17 nancial institution, including motor vehicle loans, 18 credit cards, home equity loans, and other secured 19 or unsecured loans. The regulated financial institu- 20 tion shall maintain data separately for each category 21 of consumer loan, including the following for each 22 loan: 23 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00063 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 64 •HR 1737 IH ‘‘(A) A unique number or alpha-numeric 1 symbol that can be used to identify the relevant 2 loan. 3 ‘‘(B) The loan amount at origination or 4 purchase. 5 ‘‘(C) The loan location. 6 ‘‘(D) The gross annual income of the bor- 7 rower that the regulated financial institution 8 considered in making its credit decision. 9 ‘‘(3) COMMUNITY DEVELOPMENT LOANS AND 10 INVESTMENTS.—Each regulated financial institution 11 shall collect and maintain in machine readable form, 12 as prescribed by the appropriate Federal financial 13 supervisory agency, data on the categories of com- 14 munity development lending and investments, includ- 15 ing data regarding financing affordable housing, 16 small business development, and economic develop- 17 ment. 18 ‘‘(4) ASSESSMENT AREA DATA.—Each regu- 19 lated financial institution shall collect and report to 20 the appropriate Federal financial supervisory agency 21 by March 1 of each year a list for each assessment 22 area showing the geographies within the area. 23 ‘‘(5) DEPOSITS.—The appropriate Federal Su- 24 pervisory agency shall collect data from regulated fi- 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00064 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 65 •HR 1737 IH nancial institutions that reflects how many of the 1 customers of those institutions are low- and mod- 2 erate-income customers and the services that are 3 used by those customers. 4 ‘‘(b) CRA SMALL BUSINESS DISCLOSURE STATE- 5 MENT.—The appropriate Federal financial supervisory 6 agency shall prepare annually for each regulated financial 7 institution that reports data pursuant to this section a 8 statement to be known as the ‘CRA Small Business Dis- 9 closure Statement’ that contains, on a State-by-State 10 basis, the following: 11 ‘‘(1) For each county (and for each assessment 12 area smaller than a county) with a population of 13 500,000 persons or fewer in which the regulated fi- 14 nancial institution reported a small business or small 15 farm loan: 16 ‘‘(A) The number and amount of small 17 business and small farm loans reported as origi- 18 nated or purchased located in low-, moderate-, 19 middle-, and upper-income geographies. 20 ‘‘(B) A list grouping each geography ac- 21 cording to whether the geography is low-, mod- 22 erate-, middle-, or upper-income. 23 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00065 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 66 •HR 1737 IH ‘‘(C) A list showing each geography in 1 which the regulated financial institution re- 2 ported a small business or small farm loan. 3 ‘‘(D) The number and amount of small 4 business and small farm loans to businesses 5 and farms with gross annual revenues of 6 $1,000,000 or less. 7 ‘‘(2) For each county (and for each assessment 8 area smaller than a county) with a population in ex- 9 cess of 500,000 in which the regulated financial in- 10 stitution reported a small business or small farm 11 loan: 12 ‘‘(A) The number and amount of small 13 business and small farm loans reported as origi- 14 nated or purchased located in geographies with 15 median income relative to the area median in- 16 come of less than 10 percent, 10 or more but 17 less than 20 percent, 20 or more but less than 18 30 percent, 30 or more but less than 40 per- 19 cent, 40 or more but less than 50 percent, 50 20 or more but less than 60 percent, 60 or more 21 but less than 70 percent, 70 or more but less 22 than 80 percent, 80 or more but less than 90 23 percent, 90 or more but less than 100 percent, 24 100 or more but less than 110 percent, 110 or 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00066 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 67 •HR 1737 IH more but less than 120 percent, and 120 per- 1 cent or more. 2 ‘‘(B) A list grouping each geography in the 3 county or assessment area according to whether 4 the median income in the geography relative to 5 the area median income is less than 10 percent, 6 10 or more but less than 20 percent, 20 or 7 more but less than 30 percent, 30 or more but 8 less than 40 percent, 40 or more but less than 9 50 percent, 50 or more but less than 60 per- 10 cent, 60 or more but less than 70 percent, 70 11 or more but less than 80 percent, 80 or more 12 but less than 90 percent, 90 or more but less 13 than 100 percent, 100 or more but less than 14 110 percent, 110 or more but less than 120 15 percent, and 120 percent or more. 16 ‘‘(C) A list showing each geography in 17 which the regulated financial institution re- 18 ported a small business or small farm loan. 19 ‘‘(D) The number and amount of small 20 business and small farm loans to businesses 21 and farms with gross annual revenues of 22 $1,000,000 or less. 23 ‘‘(3) The number and amount of small business 24 and small farm loans located inside each assessment 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00067 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 68 •HR 1737 IH area reported by the regulated financial institution 1 and the number and amount of small business and 2 small farm loans located outside the assessment 3 areas reported by the regulated financial institution. 4 ‘‘(4) The number and amount of community de- 5 velopment loans reported as originated or purchased. 6 ‘‘(c) AGGREGATE DISCLOSURE STATEMENTS.— 7 ‘‘(1) IN GENERAL.—Each appropriate Federal 8 financial supervisory agency shall prepare annually, 9 for each county and for each assessment area small- 10 er than a county, an aggregate disclosure statement 11 of small business, small farm, and consumer lending 12 by all regulated financial institutions subject to re- 13 porting under this section, which shall indicate, for 14 each geography, the number and amount of all small 15 business, small farm, and consumer loans originated 16 or purchased by reporting regulated financial insti- 17 tutions. 18 ‘‘(2) ADJUSTED FORM.—An appropriate Fed- 19 eral financial supervisory agency may adjust the 20 form of the disclosure statement prepared under 21 paragraph (1) if necessary, because of special cir- 22 cumstances, to protect the privacy of a borrower or 23 the competitive position of a regulated financial in- 24 stitution. 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00068 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 69 •HR 1737 IH ‘‘(d) CENTRAL DATA DEPOSITORIES.—The Federal 1 Financial Institutions Examination Council, in consulta- 2 tion with the appropriate Federal financial supervisory 3 agencies, shall implement a system— 4 ‘‘(1) to allow the public to access online and in 5 a searchable format the data maintained under 6 paragraphs (1) through (4) of subsection (a); and 7 ‘‘(2) that ensures that personally identifiable fi- 8 nancial information is not disclosed to public. 9 ‘‘(e) LIMITATION.—An appropriate Federal financial 10 supervisory agency may not use the authorities of the ap- 11 propriate Federal financial supervisory agency under this 12 section to obtain a record from a regulated financial insti- 13 tution for the purpose of gathering or analyzing the per- 14 sonally identifiable financial information of a consumer.’’. 15 (c) AMENDMENT TO THE BANK HOLDING COMPANY 16 ACT OF 1956.—Section 4(k)(6) of the Bank Holding 17 Company Act of 1956 (12 U.S.C. 1843(k)(6)) is amended 18 to read as follows: 19 ‘‘(6) NOTICE AND OPPORTUNITY FOR COMMENT 20 REQUIRED.— 21 ‘‘(A) IN GENERAL.—No financial holding 22 company shall directly or indirectly acquire, and 23 no company that becomes a financial holding 24 company shall directly or indirectly acquire con- 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00069 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 70 •HR 1737 IH trol of, any company in the United States, in- 1 cluding through merger, consolidation, or other 2 type of business combination, that is engaged in 3 activities permitted under this subsection or 4 subsection (n) or (o), unless— 5 ‘‘(i) the holding company has provided 6 notice to the Board, not later than 60 days 7 prior to the proposed acquisition or prior 8 to becoming a financial holding company, 9 and during that time period, or such 10 longer time period not exceeding an addi- 11 tional 60 days, as established by the 12 Board; 13 ‘‘(ii) the Board has provided public 14 notice and opportunity for comment for 15 not less than 60 days; and 16 ‘‘(iii) the Board has not issued a no- 17 tice disapproving the proposed acquisition 18 or retention. 19 ‘‘(B) FACTORS FOR CONSIDERATION.—In 20 reviewing any prior notice filed under this para- 21 graph, the Board shall— 22 ‘‘(i) consider the overall rating of the 23 financial holding company under the Com- 24 munity Reinvestment Act of 1977 (12 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00070 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 71 •HR 1737 IH U.S.C. 2901 et seq.) and any improvement 1 plans submitted pursuant to that Act; 2 ‘‘(ii) provide opportunity for public 3 comment for a period of not less than 60 4 days; 5 ‘‘(iii) consider changes in the commu- 6 nity reinvestment performance of the fi- 7 nancial holding company since the last rat- 8 ing under the Community Reinvestment 9 Act of 1977 (12 U.S.C. 2901 et seq.) by 10 the appropriate Federal financial super- 11 visory agency; and 12 ‘‘(iv) require— 13 ‘‘(I) a demonstration that grant- 14 ing the application for a deposit facil- 15 ity is in the public interest, which 16 shall include submission to the appro- 17 priate Federal financial supervisory 18 agency of a community benefits plan; 19 ‘‘(II) that the institution consult 20 with community-based organizations 21 and other community stakeholders in 22 developing the community benefits 23 plan; and 24 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00071 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 72 •HR 1737 IH ‘‘(III) a public hearing for any 1 bank that has received a ‘need-to-im- 2 prove’ or ‘sufficient’ grade in any as- 3 sessment area during the last exam- 4 ination under the Community Rein- 5 vestment Act of 1977 (12 U.S.C. 6 2901 et seq.).’’. 7 (d) TECHNICAL AND CONFORMING AMENDMENT.— 8 Section 10(c)(2)(H)(i) of the Home Owners’ Loan Act (12 9 U.S.C. 1467a(c)(2)(H)(i)) is amended by striking ‘‘section 10 804(c) of the Community Reinvestment Act of 1977 (12 11 U.S.C. 2903(c))’’ and inserting ‘‘section 804(f) of the 12 Community Reinvestment Act of 1977 (12 U.S.C. 13 2903(f))’’. 14 SEC. 204. AMENDMENTS RELATING TO CREDIT UNION 15 SERVICE TO UNDERSERVED AREAS. 16 (a) IN GENERAL.—The Federal Credit Union Act (12 17 U.S.C. 1751 et seq.) is amended— 18 (1) in section 101 (12 U.S.C. 1752)— 19 (A) in paragraph (8), by striking ‘‘and’’ at 20 the end; 21 (B) in paragraph (9), by striking the pe- 22 riod at the end and inserting ‘‘; and’’; and 23 (C) by adding at the end the following: 24 ‘‘(10) the term ‘underserved area’— 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00072 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 73 •HR 1737 IH ‘‘(A) means a local community, neighbor- 1 hood, or rural district that— 2 ‘‘(i) is an investment area, as defined 3 in section 103 of the Community Develop- 4 ment Banking and Financial Institutions 5 Act of 1994 (12 U.S.C. 4702), that meets 6 such additional requirements that the 7 Board may impose; and 8 ‘‘(ii) is underserved, based on data of 9 the Board and the Federal banking agen- 10 cies (as defined in section 3 of the Federal 11 Deposit Insurance Act (12 U.S.C. 1813)), 12 by other depository institutions (as defined 13 in section 19(b)(1)(A) of the Federal Re- 14 serve Act (12 U.S.C. 461(b)(1)(A)); and 15 ‘‘(B) notwithstanding subparagraph (A), 16 includes, with respect to any Federal credit 17 union, any geographic area within which the 18 credit union— 19 ‘‘(i) has received approval to provide 20 service before the date of enactment of this 21 paragraph from the Administration; and 22 ‘‘(ii) has established a service facility 23 before that date of enactment.’’; 24 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00073 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 74 •HR 1737 IH (2) in section 106 (12 U.S.C. 1756), by adding 1 at the end the following: ‘‘The Board shall monitor 2 adherence by a Federal credit union to a significant 3 unmet needs plan submitted under section 109(h) by 4 that Federal credit union that describes how the 5 Federal credit union will serve the deposit and other 6 financial needs of the community.’’; and 7 (3) in section 109 (12 U.S.C. 1759)— 8 (A) in subsection (c), by amending para- 9 graph (2) to read as follows: 10 ‘‘(2) EXCEPTION FOR UNDERSERVED AREAS.— 11 ‘‘(A) IN GENERAL.—Notwithstanding sub- 12 section (b), the Board may approve an applica- 13 tion by a Federal credit union to allow the 14 membership of the credit union to include any 15 person or organization whose principal resi- 16 dence or place of business is located within a 17 local community, neighborhood, or rural district 18 if— 19 ‘‘(i) the Board determines— 20 ‘‘(I) at any time after August 7, 21 1998, that the local community, 22 neighborhood, or rural district taken 23 into account for purposes of this para- 24 graph is an underserved area; and 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00074 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 75 •HR 1737 IH ‘‘(II) at the time of the approval, 1 that the credit union is well capital- 2 ized or adequately capitalized (as de- 3 fined in section 216(c)(1)); and 4 ‘‘(ii) before the end of the 24-month 5 period beginning on the date of the ap- 6 proval, the credit union has established 7 and maintains an ongoing method to pro- 8 vide services in the local community, neigh- 9 borhood, or rural district. 10 ‘‘(B) TERMINATION OF APPROVAL.— 11 ‘‘(i) IN GENERAL.—Any failure of a 12 Federal credit union to meet the require- 13 ment of clause (ii) of subparagraph (A) by 14 the end of the 24-month period referred to 15 in that clause shall constitute a termi- 16 nation, as a matter of law, of any approval 17 of an application under this paragraph by 18 the Board with respect to the membership 19 of the credit union. 20 ‘‘(ii) SIGNIFICANT UNMET NEEDS 21 PLAN.—The Board may terminate the 22 membership of a Federal credit union upon 23 a finding that the credit union is not meet- 24 ing the terms of the significant unmet 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00075 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 76 •HR 1737 IH needs plan of the credit union submitted 1 under subsection (h)(1). 2 ‘‘(C) CREDIT UNION REPORTING REQUIRE- 3 MENT.—Any Federal credit union that has an 4 application approved under this paragraph 5 shall, as part of the ordinary course of the ex- 6 amination cycle and supervision process, submit 7 a report to the Administration that includes— 8 ‘‘(i) the number of members of the 9 credit union who are members by reason of 10 the application; 11 ‘‘(ii) the number of offices or facilities 12 maintained by the credit union in the local 13 community, neighborhood, or rural district 14 taken into account by the Board in approv- 15 ing the application; and 16 ‘‘(iii) evidence, as specified by the 17 Board by regulation, demonstrating com- 18 pliance by the credit union with the signifi- 19 cant unmet needs plan submitted by the 20 credit union under subsection (h)(1), as 21 specified by the Administration. 22 ‘‘(D) PUBLICATION BY ADMINISTRA- 23 TION.—The Administration shall publish an an- 24 nual report containing— 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00076 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 77 •HR 1737 IH ‘‘(i) a list of all the applications ap- 1 proved under this paragraph before the 2 date on which the report is published; 3 ‘‘(ii) the number and locations of the 4 underserved areas taken into account in 5 approving those applications; 6 ‘‘(iii) the total number of members of 7 credit unions who are members by reason 8 of the approval of those applications; and 9 ‘‘(iv) evidence demonstrating compli- 10 ance by credit unions with significant 11 unmet needs plans submitted by the credit 12 unions under subsection (h)(1), as speci- 13 fied by the Administration.’’; 14 (B) in subsection (e)(2), by inserting ‘‘sub- 15 section (c)(2) and’’ after ‘‘provided in’’; and 16 (C) by adding at the end the following: 17 ‘‘(h) ADDITIONAL REQUIREMENTS FOR COMMUNITY 18 CREDIT UNIONS.— 19 ‘‘(1) IN GENERAL.—A Federal credit union de- 20 siring membership as a credit union described in 21 subsection (b)(3) shall submit to the Board a busi- 22 ness plan, which shall include, among other issues, 23 a marketing plan that identifies— 24 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00077 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 78 •HR 1737 IH ‘‘(A) the unique needs of the various demo- 1 graphic groups in the proposed community; and 2 ‘‘(B) how the credit union will market to 3 each group, particularly underserved groups, to 4 address those needs. 5 ‘‘(2) PUBLIC COMMENT AND HEARING.—With 6 respect to a Federal credit union desiring member- 7 ship as a credit union described in subsection (b)(3) 8 for an area with multiple political jurisdictions with 9 a population of not less than 2,500,000, the Admin- 10 istration shall— 11 ‘‘(A) publish a notice in the Federal Reg- 12 ister seeking comment from interested parties 13 about the proposed community; and 14 ‘‘(B) conduct a public hearing regarding 15 the application of the Federal credit union.’’. 16 (b) REGULATIONS.—Not later than 1 year after the 17 date of enactment of this Act, the National Credit Union 18 Administration Board shall issue final regulations to im- 19 plement the amendments made by subsection (a). 20 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00078 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 79 •HR 1737 IH TITLE III—REMOVING BARRIERS 1 THAT ISOLATE COMMUNITIES 2 SEC. 301. EXPANDING RIGHTS UNDER THE FAIR HOUSING 3 ACT. 4 (a) PURPOSES.—The purposes of the amendments 5 made under this section are— 6 (1) to expand, as well as clarify, confirm, and 7 create greater consistency in, the protections against 8 discrimination on the basis of all covered character- 9 istics; and 10 (2) to provide guidance and notice to individ- 11 uals, organizations, corporations, and agencies re- 12 garding their obligations under Federal law. 13 (b) AMENDMENTS TO THE FAIR HOUSING ACT.— 14 The Fair Housing Act (42 U.S.C. 3601 et seq.) is amend- 15 ed— 16 (1) in section 802 (42 U.S.C. 3602), by adding 17 at the end the following: 18 ‘‘(p) ‘Gender identity’ means the gender-related iden- 19 tity, appearance, or mannerisms or other gender-related 20 characteristics of an individual, with or without regard to 21 the individual’s designated sex at birth. 22 ‘‘(q) ‘Marital status’ has the meaning given the term 23 in section 202.2 of title 12, Code of Federal Regulations, 24 or any successor regulation. 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00079 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 80 •HR 1737 IH ‘‘(r) ‘Sexual orientation’ means homosexuality, het- 1 erosexuality, or bisexuality. 2 ‘‘(s) ‘Source of income’ includes income for which 3 there is a reasonable expectation that the income will con- 4 tinue from— 5 ‘‘(1) a profession, occupation or job; 6 ‘‘(2) any government or private assistance, 7 grant, loan or rental assistance program, including 8 low-income housing assistance certificates and 9 vouchers issued under the United States Housing 10 Act of 1937 (42 U.S.C. 1437 et seq.); 11 ‘‘(3) a gift, an inheritance, a pension, an annu- 12 ity, alimony, child support, or other consideration or 13 benefit; or 14 ‘‘(4) the sale or pledge of property or an inter- 15 est in property. 16 ‘‘(t) ‘Veteran status’ means— 17 ‘‘(1) a member of the uniformed services, as de- 18 fined in section 101 of title 10, United States Code; 19 or 20 ‘‘(2) a veteran, as defined in section 101 of title 21 38, United States Code.’’; 22 (2) in section 804 (42 U.S.C. 3604)— 23 (A) by inserting ‘‘actual or perceived’’ be- 24 fore ‘‘race, color’’ each place that term appears; 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00080 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 81 •HR 1737 IH (B) by inserting ‘‘sexual orientation, gen- 1 der identity, marital status, source of income, 2 veteran status,’’ after ‘‘sex,’’ each place that 3 term appears; and 4 (C) in subsection (c)— 5 (i) by inserting ‘‘(1)’’ before ‘‘To 6 make’’; and 7 (ii) by adding at the end the fol- 8 lowing: 9 ‘‘(2) Nothing in this title shall be construed to— 10 ‘‘(A) prohibit a lender from implementing a 11 loan program for veterans or based upon veteran 12 status; or 13 ‘‘(B) prohibit an entity from providing housing 14 assistance under section 8(o)(19) of the United 15 States Housing Act of 1937 (42 U.S.C. 16 1437f(o)(19)), the Homeless Providers Grant and 17 Per Diem program of the Department of Veterans 18 Affairs, or any other Federal housing assistance pro- 19 gram for veterans or based upon veterans status.’’; 20 (3) in section 805 (42 U.S.C. 3605)— 21 (A) by inserting ‘‘actual or perceived’’ be- 22 fore ‘‘race, color’’ each place that term appears; 23 and 24 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00081 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 82 •HR 1737 IH (B) by inserting ‘‘sexual orientation, gen- 1 der identity, marital status, source of income, 2 veteran status,’’ after ‘‘sex,’’ each place that 3 term appears; 4 (4) in section 806 (42 U.S.C. 3606)— 5 (A) by inserting ‘‘actual or perceived’’ be- 6 fore ‘‘race, color’’; and 7 (B) by inserting ‘‘sexual orientation, gen- 8 der identity, marital status, source of income, 9 veteran status,’’ after ‘‘sex,’’; and 10 (5) in section 807 (42 U.S.C. 3607), by adding 11 at the end the following: 12 ‘‘(c) Nothing in this title limits the ability of the 13 owner of a dwelling owner to determine, in a commercially 14 reasonable and non-discriminatory manner, the ability of 15 a person to afford to purchase or rent the dwelling.’’. 16 (c) PREVENTION OF INTIMIDATION.—Section 901 of 17 the Civil Rights Act of 1968 (42 U.S.C. 3631) is amend- 18 ed— 19 (1) by inserting ‘‘actual or perceived’’ before 20 ‘‘race, color’’ each place that term appears; and 21 (2) by inserting ‘‘sexual orientation (as defined 22 in section 802), gender identity (as defined in sec- 23 tion 802), marital status (as defined in section 802), 24 source of income (as defined in section 802), veteran 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00082 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 83 •HR 1737 IH status (as defined in section 802),’’ after ‘‘sex,’’ each 1 place that term appears. 2 (d) RULE OF CONSTRUCTION.—Nothing in the 3 amendments made by this section shall be construed to 4 mean that a particular class of individuals was not pro- 5 tected against discrimination under existing Federal law. 6 SEC. 302. IMPROVING OUTCOMES IN HOUSING ASSISTANCE 7 PROGRAMS. 8 (a) INDIAN HOUSING ASSISTANCE.—Section 502 of 9 the Native American Housing Assistance and Self-Deter- 10 mination Act of 1996 (25 U.S.C. 4181) is amended by 11 adding at the end the following: 12 ‘‘(c) APPLICABILITY.—Subsections (a) and (b) shall 13 not apply with respect to tenant-based assistance provided 14 under section 8(o) of the United States Housing Act of 15 1937 (42 U.S.C. 1437f(o)).’’. 16 (b) SUPPLEMENTAL ADMINISTRATIVE FEE.—Section 17 8(q)(2)(B) of the United States Housing Act of 1937 (42 18 U.S.C. 1437f(q)(2)(B)) is amended by inserting ‘‘, includ- 19 ing the cost of assisting families with children or families 20 with a member with a disability that move to lower pov- 21 erty, higher opportunity neighborhoods (as determined by 22 the Secretary based on objective, evidence-based criteria)’’ 23 after ‘‘programs’’. 24 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00083 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 84 •HR 1737 IH (c) REGIONAL PLANNING TO INCREASE ACCESS TO 1 HIGHER OPPORTUNITY AREAS.—Section 8(o) of the 2 United States Housing Act of 1937 (42 U.S.C. 1437f(o)) 3 is amended by adding at the end the following: 4 ‘‘(21) INCREASE ACCESS TO HIGHER OPPOR- 5 TUNITY AREAS.— 6 ‘‘(A) LOCATION ANALYSIS.— 7 ‘‘(i) IN GENERAL.—A public housing 8 agency that administers the program 9 under this subsection in a metropolitan 10 area shall— 11 ‘‘(I) analyze the locations where 12 the participants of the program of the 13 public housing agency live; and 14 ‘‘(II) based on the analysis de- 15 scribed in subclause (I), establish poli- 16 cies and practices to reduce disparities 17 and barriers to access to locations 18 throughout the metropolitan area that 19 evidence indicates are more likely to 20 improve outcomes for children or 21 adults. 22 ‘‘(ii) CONSIDERATIONS.—The location 23 analysis required under this subparagraph 24 shall— 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00084 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 85 •HR 1737 IH ‘‘(I) consider separately the loca- 1 tions of families with children, house- 2 holds that include a person with dis- 3 abilities, and other groups protected 4 under the Fair Housing Act (42 5 U.S.C. 3601 et seq.); and 6 ‘‘(II) include an analysis of the 7 locations in relation to dwelling units 8 with rents that are potentially afford- 9 able to voucher holders and the likely 10 impact of key neighborhood attributes 11 on their well-being and long-term suc- 12 cess, based on Federal and available 13 local data. 14 ‘‘(iii) MAPPING TOOLS.—The Sec- 15 retary shall— 16 ‘‘(I) provide mapping tools and 17 other information necessary for a pub- 18 lic housing agency to perform the lo- 19 cation analysis under this subpara- 20 graph using the demographic data on 21 participating families submitted to the 22 Secretary under part 908 of title 24, 23 Code of Federal Regulations, or any 24 successor regulation; 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00085 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 86 •HR 1737 IH ‘‘(II) publish a notice in the Fed- 1 eral Register, subject to public com- 2 ment, that specifies the data sources 3 and definitions that will be incor- 4 porated in each mapping tool required 5 under subclause (I); and 6 ‘‘(III) update the notice required 7 under subclause (II) as needed based 8 on changes in the availability of rel- 9 evant data or evidence of neighbor- 10 hood attributes likely to impact the 11 well-being and long-term success of 12 participants in the program under this 13 subsection. 14 ‘‘(iv) FREQUENCY AND AVAIL- 15 ABILITY.—The location analysis required 16 under this subparagraph shall— 17 ‘‘(I) be performed by each public 18 housing agency described in clause (i) 19 not less frequently than once every 5 20 years; 21 ‘‘(II) be performed by all public 22 housing agencies in a metropolitan 23 area in the same year, as determined 24 by the Secretary; and 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00086 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 87 •HR 1737 IH ‘‘(III) be made available to the 1 public in a manner that protects the 2 privacy of program participants. 3 ‘‘(B) REGIONAL POLICIES TO INCREASE 4 ACCESS TO HIGHER OPPORTUNITY NEIGHBOR- 5 HOODS.—Each public housing agency described 6 in subparagraph (A)(i) shall— 7 ‘‘(i) consult with other such public 8 housing agencies in the same metropolitan 9 area, or smaller regional area approved by 10 the Secretary, about the possible barriers 11 and other reasons for the disparities iden- 12 tified in the location analysis required 13 under subparagraph (A); 14 ‘‘(ii) identify policies or practices that 15 those public housing agencies could adopt 16 individually or in collaboration, or other 17 strategies that recipients of grants or other 18 funding from the Secretary could adopt, to 19 reduce the barriers and disparities and in- 20 crease the share of families with children 21 and other demographic groups using 22 vouchers in higher-opportunity neighbor- 23 hoods in the metropolitan area or region; 24 and 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00087 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 88 •HR 1737 IH ‘‘(iii) include in the administrative 1 plan required under section 982.54 of title 2 24, Code of Federal Regulations, or any 3 successor regulation, the policies that the 4 public housing agency has adopted under 5 this paragraph. 6 ‘‘(C) ASSESSMENT.—The Secretary shall 7 include public housing agency performance in 8 achieving the goal described in subparagraph 9 (A)(i)(II) in the periodic assessment of agency 10 performance in managing the program under 11 this subsection required under part 985 of title 12 24, Code of Federal Regulations, or any suc- 13 cessor regulation.’’. 14 (d) REQUIRED REGULATORY CHANGES TO PUBLIC 15 HOUSING AGENCY CONSORTIA.— 16 (1) DEFINITIONS.—In this subsection: 17 (A) MOVING TO WORK DEMONSTRATION 18 PROGRAM.—The term ‘‘Moving to Work dem- 19 onstration program’’ means the program estab- 20 lished under section 204 of the Departments of 21 Veterans Affairs and Housing and Urban De- 22 velopment, and Independent Agencies Appro- 23 priations Act, 1996 (Public Law 104–134; 110 24 Stat. 1321–281). 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00088 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 89 •HR 1737 IH (B) PUBLIC HOUSING AGENCY.—The term 1 ‘‘public housing agency’’ has the meaning given 2 the term in section 3(b)(6) of the United States 3 Housing Act of 1937 (42 U.S.C. 1437a(b)(6)). 4 (2) REQUIREMENT.—Not later than 1 year 5 after the date of enactment of this Act, the Sec- 6 retary of Housing and Urban Development shall es- 7 tablish policies and procedures that— 8 (A) enable public housing agencies that 9 elect to operate in consortia under section 13(a) 10 of the United States Housing Act of 1937 (42 11 U.S.C. 1437k(a)), excluding public housing 12 agencies participating in the Moving to Work 13 demonstration program— 14 (i) to consolidate their funding con- 15 tracts for assistance provided under section 16 8(o) of such Act (42 U.S.C. 1437f(o)) into 17 a single contract; 18 (ii) to consolidate their funding con- 19 tracts for assistance provided under sub- 20 sections (d) and (e) of section 9 of such 21 Act (42 U.S.C. 1437g); or 22 (iii) to exercise the consolidation op- 23 tions under each of clauses (i) and (ii); and 24 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00089 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 90 •HR 1737 IH (B) enable public housing agencies to form 1 partial consortia under such section 13(a) (42 2 U.S.C. 1437k(a)) that consolidate the adminis- 3 tration of certain aspects of their housing pro- 4 grams to increase access to higher-opportunity 5 areas or for other purposes, subject to such re- 6 quirements as the Secretary may establish. 7 (3) MOVING TO WORK AGENCIES.—Any flexi- 8 bility or waiver applicable to the Moving to Work 9 demonstration program shall not apply to any activi- 10 ties or funds administered through a partial con- 11 sortia formed under paragraph (2)(B) by 1 or more 12 public housing agencies participating in the Moving 13 to Work demonstration program. 14 TITLE IV—ESTATE TAX REFORM 15 SEC. 401. AMENDMENT TO INTERNAL REVENUE CODE OF 16 1986. 17 Except as otherwise expressly provided, whenever in 18 this title an amendment or repeal is expressed in terms 19 of an amendment to, or repeal of, a section or other provi- 20 sion, the reference shall be considered to be made to a 21 section or other provision of the Internal Revenue Code 22 of 1986. 23 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00090 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 91 •HR 1737 IH SEC. 402. RATE ADJUSTMENT. 1 (a) INCREASE IN ESTATE TAX RATES.—The table 2 contained in section 2001(c) is amended to read as follows: 3 If the amount with respect to which the tentative tax to be computed is: The tentative tax is: Not over $13,000,000 ................... 55 percent of such amount. Over $13,000,000 but not over $93,000,000. $7,150,000, plus 60 percent of the excess of such amount over $13,000,000. Over $93,000,000 .......................... $55,150,000, plus 65 percent of the excess of such amount over $93,000,000. (b) REDUCTION OF BASIC EXCLUSION AMOUNT.— 4 Paragraph (3) of section 2010(c) is amended to read as 5 follows: 6 ‘‘(3) BASIC EXCLUSION AMOUNT.—For pur- 7 poses of this subsection, the basic exclusion amount 8 is $3,500,000.’’. 9 (c) SURTAX ON BILLION DOLLAR ESTATES.—Section 10 2001 is amended— 11 (1) in subsection (b), by striking ‘‘The tax’’ and 12 inserting ‘‘Subject to subsection (h), the tax’’, and 13 (2) by adding at the end the following new sub- 14 section: 15 ‘‘(h) SURTAX ON BILLION DOLLAR ESTATES.— 16 ‘‘(1) IN GENERAL.—In the case of a taxable es- 17 tate for which the applicable amount is in excess of 18 $1,000,000,000, the tax determined under sub- 19 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00091 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 92 •HR 1737 IH section (b) shall be increased by an amount equal to 1 10 percent of such applicable amount. 2 ‘‘(2) APPLICABLE AMOUNT.—For purposes of 3 this subsection, the applicable amount shall be equal 4 to the sum of the amounts under subparagraphs (A) 5 and (B) of paragraph (1) of subsection (b) for the 6 taxable estate.’’. 7 SEC. 403. REQUIRED MINIMUM 10-YEAR TERM, ETC., FOR 8 GRANTOR RETAINED ANNUITY TRUSTS. 9 (a) IN GENERAL.—Subsection (b) of section 2702 is 10 amended— 11 (1) by redesignating paragraphs (1), (2), and 12 (3) as subparagraphs (A), (B), and (C), respectively, 13 and by moving such subparagraphs (as so redesig- 14 nated) 2 ems to the right; 15 (2) by striking ‘‘For purposes of’’ and inserting 16 the following: 17 ‘‘(1) IN GENERAL.—For purposes of’’; 18 (3) by striking ‘‘paragraph (1) or (2)’’ in para- 19 graph (1)(C) (as so redesignated) and inserting 20 ‘‘subparagraph (A) or (B)’’; and 21 (4) by adding at the end the following new 22 paragraph: 23 ‘‘(2) ADDITIONAL REQUIREMENTS WITH RE- 24 SPECT TO GRANTOR RETAINED ANNUITIES.—For 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00092 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 93 •HR 1737 IH purposes of subsection (a), in the case of an interest 1 described in paragraph (1)(A) (determined without 2 regard to this paragraph) which is retained by the 3 transferor, such interest shall be treated as de- 4 scribed in such paragraph only if— 5 ‘‘(A) the right to receive the fixed amounts 6 referred to in such paragraph is for a term of 7 not less than 10 years, 8 ‘‘(B) such fixed amounts, when determined 9 on an annual basis, do not decrease relative to 10 any prior year during the first 10 years of the 11 term referred to in subparagraph (A), and 12 ‘‘(C) the remainder interest has a value 13 equal to or greater than 10 percent of the value 14 of the assets transferred to the trust, deter- 15 mined as of the time of the transfer.’’. 16 (b) EFFECTIVE DATE.—The amendments made by 17 this section shall apply to transfers made after the date 18 of the enactment of this Act. 19 SEC. 404. CERTAIN TRANSFER TAX RULES APPLICABLE TO 20 GRANTOR TRUSTS. 21 (a) IN GENERAL.—Subtitle B is amended by adding 22 at the end the following new chapter: 23 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00093 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 94 •HR 1737 IH ‘‘CHAPTER 16—SPECIAL RULES FOR 1 GRANTOR TRUSTS 2 ‘‘Sec. 2901. Application of transfer taxes. ‘‘SEC. 2901. APPLICATION OF TRANSFER TAXES. 3 ‘‘(a) IN GENERAL.—In the case of any portion of a 4 trust to which this section applies— 5 ‘‘(1) the value of the gross estate of the de- 6 ceased deemed owner of such portion shall include 7 all assets attributable to that portion at the time of 8 the death of such owner, 9 ‘‘(2) any distribution from such portion to one 10 or more beneficiaries during the life of the deemed 11 owner of such portion shall be treated as a transfer 12 by gift for purposes of chapter 12, and 13 ‘‘(3) if at any time during the life of the 14 deemed owner of such portion, such owner ceases to 15 be treated as the owner of such portion under sub- 16 part E of part 1 of subchapter J of chapter 1, all 17 assets attributable to such portion at such time shall 18 be treated for purposes of chapter 12 as a transfer 19 by gift made by the deemed owner. 20 ‘‘(b) PORTION OF TRUST TO WHICH SECTION AP- 21 PLIES.—This section shall apply to— 22 ‘‘(1) the portion of a trust with respect to 23 which the grantor is the deemed owner, and 24 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00094 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 95 •HR 1737 IH ‘‘(2) the portion of the trust to which a person 1 who is not the grantor is a deemed owner by reason 2 of the rules of subpart E of part 1 of subchapter J 3 of chapter 1, and such deemed owner engages in a 4 sale, exchange, or comparable transaction with the 5 trust that is disregarded for purposes of subtitle A. 6 For purposes of paragraph (2), the portion of the trust 7 described with respect to a transaction is the portion of 8 the trust attributable to the property received by the trust 9 in such transaction, including all retained income there- 10 from, appreciation thereon, and reinvestments thereof, net 11 of the amount of consideration received by the deemed 12 owner in such transaction. 13 ‘‘(c) EXCEPTIONS.—This section shall not apply to— 14 ‘‘(1) any trust that is includible in the gross es- 15 tate of the deemed owner (without regard to sub- 16 section (a)(1)), and 17 ‘‘(2) any other type of trust that the Secretary 18 determines by regulations or other guidance does not 19 have as a significant purpose the avoidance of trans- 20 fer taxes. 21 ‘‘(d) DEEMED OWNER DEFINED.—For purposes of 22 this section, the term ‘deemed owner’ means any person 23 who is treated as the owner of a portion of a trust under 24 subpart E of part 1 of subchapter J of chapter 1. 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00095 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 96 •HR 1737 IH ‘‘(e) REDUCTION FOR TAXABLE GIFTS TO TRUST 1 MADE BY OWNER.—The amount to which subsection (a) 2 applies shall be reduced by the value of any transfer by 3 gift by the deemed owner to the trust previously taken 4 into account by the deemed owner under chapter 12. 5 ‘‘(f) LIABILITY FOR PAYMENT OF TAX.—Any tax im- 6 posed pursuant to subsection (a) shall be a liability of the 7 trust.’’. 8 (b) CLERICAL AMENDMENT.—The table of chapters 9 for subtitle B is amended by adding at the end the fol- 10 lowing new item: 11 ‘‘CHAPTER 16. SPECIAL RULES FOR GRANTOR TRUSTS’’. (c) EFFECTIVE DATE.—The amendments made by 12 this section shall apply— 13 (1) to trusts created on or after the date of the 14 enactment of this Act; 15 (2) to any portion of a trust established before 16 the date of the enactment of this Act which is attrib- 17 utable to a contribution made on or after such date; 18 and 19 (3) to any portion of a trust established before 20 the date of the enactment of this Act to which sec- 21 tion 2901(a) of the Internal Revenue Code of 1986 22 (as added by subsection (a)) applies by reason of a 23 transaction described in section 2901(b)(2) of such 24 Code on or after such date. 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00096 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 97 •HR 1737 IH SEC. 405. ELIMINATION OF GENERATION-SKIPPING TRANS- 1 FER TAX EXEMPTION FOR CERTAIN TRUSTS. 2 (a) IN GENERAL.—Section 2642 is amended by add- 3 ing at the end the following new subsection: 4 ‘‘(h) ELIMINATION OF GST EXEMPTION FOR CER- 5 TAIN TRUSTS.— 6 ‘‘(1) IN GENERAL.— 7 ‘‘(A) TRANSFERS FROM NON-QUALIFYING 8 TRUSTS.—In the case of any generation-skip- 9 ping transfer made from a trust that is not a 10 qualifying trust, the inclusion ratio with respect 11 to any property transferred in such transfer 12 shall be 1. 13 ‘‘(B) QUALIFYING TRUST.—For purposes 14 of this subsection, the term ‘qualifying trust’ 15 means a trust for which the date of termination 16 of such trust is not greater than 50 years after 17 the date on which such trust is created. 18 ‘‘(2) TRUSTS CREATED BEFORE DATE OF EN- 19 ACTMENT.—In the case of any trust created before 20 the date of the enactment of this subsection, such 21 trust shall be deemed to be a qualifying trust for a 22 period of 50 years after the date of the enactment 23 of this subsection. 24 ‘‘(3) DATE OF CREATION OF CERTAIN DEEMED 25 SEPARATE TRUSTS.—In the case of any portion of a 26 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00097 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 98 •HR 1737 IH trust which is treated as a separate trust under sec- 1 tion 2654(b)(1), such separate trust shall be treated 2 as created on the date of the first transfer described 3 in such section with respect to such separate trust. 4 ‘‘(4) DATE OF CREATION OF POUR-OVER 5 TRUSTS.—In the case of any generation-skipping 6 transfer of property which involves the transfer of 7 property from 1 trust to another trust, the date of 8 the creation of the transferee trust shall be treated 9 as being the earlier of— 10 ‘‘(A) the date of the creation of such trans- 11 feree trust, or 12 ‘‘(B) the date of the creation of the trans- 13 feror trust. 14 In the case of multiple transfers to which the pre- 15 ceding sentence applies, the date of the creation of 16 the transferor trust shall be determined under the 17 preceding sentence before the application of the pre- 18 ceding sentence to determine the date of the creation 19 of the transferee trust. 20 ‘‘(5) REGULATIONS.—The Secretary may pre- 21 scribe such regulations or other guidance as may be 22 necessary or appropriate to carry out this sub- 23 section.’’. 24 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00098 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 99 •HR 1737 IH (b) EFFECTIVE DATE.—The amendments made by 1 this section shall take effect on the date of the enactment 2 of this Act. 3 SEC. 406. SIMPLIFYING GIFT TAX EXCLUSION FOR ANNUAL 4 GIFTS. 5 (a) IN GENERAL.—Paragraph (1) of section 2503(b) 6 is amended to read as follows: 7 ‘‘(1) IN GENERAL.— 8 ‘‘(A) LIMIT PER DONEE.—In the case of 9 gifts made to any person by the donor during 10 the calendar year, the first $10,000 of such 11 gifts to such person shall not, for purposes of 12 subsection (a), be included in the total amount 13 of gifts made during such year. 14 ‘‘(B) CUMULATIVE LIMIT PER DONOR.— 15 ‘‘(i) IN GENERAL.—The aggregate 16 amount excluded under subparagraph (A) 17 with respect to all transfers described in 18 clause (ii) made by the donor during the 19 calendar year shall not exceed twice the 20 dollar amount in effect under such sub- 21 paragraph for such calendar year. 22 ‘‘(ii) TRANSFERS SUBJECT TO LIMITA- 23 TION.—The transfers described in this 24 clause are— 25 VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00099 Fmt 6652 Sfmt 6201 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS 100 •HR 1737 IH ‘‘(I) a transfer in trust, 1 ‘‘(II) a transfer of an interest in 2 a passthrough entity, 3 ‘‘(III) a transfer of an interest 4 subject to a prohibition on sale, and 5 ‘‘(IV) any other transfer of prop- 6 erty that, without regard to with- 7 drawal, put, or other such rights in 8 the donee, cannot immediately be liq- 9 uidated by the donee.’’. 10 (b) CONFORMING AMENDMENT.—Section 2503 is 11 amended by striking subsection (c). 12 (c) REGULATIONS.—The Secretary of the Treasury, 13 or the Secretary of the Treasury’s delegate, may prescribe 14 such regulations or other guidance as may be necessary 15 or appropriate to carry out the amendments made by this 16 section. 17 (d) EFFECTIVE DATE.—The amendments made by 18 this section shall apply to any calendar year beginning 19 after the date of the enactment of this Act. 20 Æ VerDate Sep 11 2014 00:00 Mar 27, 2019 Jkt 089200 PO 00000 Frm 00100 Fmt 6652 Sfmt 6301 E:\BILLS\H1737.IH H1737 pamtmann on DSKBFK8HB2PROD with BILLS