Text of US SB 1368 (2022)

II 117TH CONGRESS 1ST SESSION S. 1368 To make housing more affordable, and for other purposes. IN THE SENATE OF THE UNITED STATES APRIL 26, 2021 Ms. WARREN (for herself, Mr. MARKEY, Mrs. GILLIBRAND, Mr. SANDERS, Ms. HIRONO, and Mr. MERKLEY) introduced the following bill; which was read twice and referred to the Committee on Finance 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 2021’’. 5 (b) TABLE OF CONTENTS.—The table of contents for 6 this Act is as follows: 7 Sec. 1. Short title; table of contents. 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. VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6211 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 2 •S 1368 IS 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 with an appraisal gap. Sec. 203. Strengthening the Community Reinvestment Act of 1977. Sec. 204. Amendments relating to credit union service to underserved areas. Sec. 205. Eligibility of certain direct descendants of certain veterans for hous- ing loans guaranteed by the Secretary of Veterans Affairs. 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 V—ACCESSIBILITY REQUIREMENTS Sec. 501. Accessibility requirements. 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 (A) a State; or 12 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 3 •S 1368 IS (B) a unit of general local government. 1 (3) INSTITUTION OF HIGHER EDUCATION.—The 2 term ‘‘institution of higher education’’ has the 3 meaning given the term in section 101 of the Higher 4 Education Act of 1965 (20 U.S.C. 1001). 5 (4) METROPOLITAN AREA; STATE; UNIT OF 6 GENERAL LOCAL GOVERNMENT.—The terms ‘‘metro- 7 politan area’’, ‘‘State’’, and ‘‘unit of general local 8 government’’ have the meanings given those terms in 9 section 102 of the Housing and Community Devel- 10 opment Act of 1974 (42 U.S.C. 5302). 11 (5) SECRETARY.—The term ‘‘Secretary’’ means 12 the Secretary of Housing and Urban Development. 13 (b) ESTABLISHMENT.—Not later than 1 year after 14 the date of enactment of this Act, the Secretary shall es- 15 tablish a program to make grants to eligible entities 16 that— 17 (1) reform local land use restrictions to bring 18 down the costs of producing affordable housing; and 19 (2) remove unnecessary barriers to building af- 20 fordable units in their communities. 21 (c) ELIGIBLE ACTIVITIES.—An eligible entity receiv- 22 ing a grant under this section may use funds to— 23 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 4 •S 1368 IS (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 the 8 heading ‘‘NATIONAL INFRASTRUCTURE INVEST- 9 MENTS’’ under the heading ‘‘OFFICE OF THE SEC- 10 RETARY’’ in title I of division L of the Consolidated 11 Appropriations Act, 2018 (Public Law 115–141; 12 132 Stat. 972) or a subsequent appropriations Act; 13 or 14 (3) modernize, renovate, or repair facilities used 15 by public elementary schools, public secondary 16 schools, and public institutions of higher education, 17 including modernization, renovation, and repairs 18 that— 19 (A) promote physical, sensory, and envi- 20 ronmental accessibility; and 21 (B) are consistent with a recognized green 22 building rating system. 23 (d) APPLICATION.— 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 5 •S 1368 IS (1) IN GENERAL.—An eligible entity desiring a 1 grant under this section shall submit to the Sec- 2 retary an application that demonstrates that the eli- 3 gible entity has carried out, or is in the process of 4 carrying out, initiatives that facilitate the expansion 5 of the supply of well-located affordable housing. 6 (2) ACTIVITIES.—Initiatives that meet the cri- 7 teria described in paragraph (1)— 8 (A) include— 9 (i) establishing ‘‘by-right’’ develop- 10 ment, which allows jurisdictions to admin- 11 istratively approve new developments that 12 are consistent with their zoning code; 13 (ii) revising or eliminating off-street 14 parking requirements to reduce the cost of 15 housing production; 16 (iii) instituting measures that 17 incentivize owners of vacant land to rede- 18 velop the space into affordable housing or 19 other productive uses; 20 (iv) revising minimum lot size require- 21 ments and bans or limits on multifamily 22 construction to allow for denser and more 23 affordable development; 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 6 •S 1368 IS (v) instituting incentives to promote 1 dense development, such as density bo- 2 nuses; 3 (vi) passing inclusionary zoning ordi- 4 nances that require a portion of newly de- 5 veloped units to be reserved for low- and 6 moderate-income renters or homebuyers; 7 (vii) streamlining regulatory require- 8 ments and shortening processes, reforming 9 zoning codes, or other initiatives that re- 10 duce barriers to housing supply elasticity 11 and affordability; 12 (viii) allowing accessory dwelling 13 units; 14 (ix) using local tax incentives to pro- 15 mote development of affordable housing; 16 and 17 (x) implementing measures that pro- 18 tect tenants from harassment and displace- 19 ment, including— 20 (I) providing access to counsel 21 for tenants facing eviction; 22 (II) the prohibition of eviction ex- 23 cept for just cause; 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 7 •S 1368 IS (III) measures intended to pre- 1 vent or mitigate sudden increases in 2 rents; 3 (IV) the repeal of laws that pre- 4 vent localities from implementing a 5 measure described in subclause (I), 6 (II), or (III); 7 (V) protections against construc- 8 tive eviction; 9 (VI) tenant right-to-organize 10 laws; 11 (VII) a cause of action for ten- 12 ants to sue landlords who threaten or 13 begin an illegal eviction; and 14 (VIII) landlord-tenant mediation 15 or other non-eviction diversion pro- 16 grams; and 17 (B) do not include activities that alter or- 18 dinances that govern wage and hour laws, fam- 19 ily and medical leave laws, health and safety re- 20 quirements, prevailing wage laws, or protections 21 for workers’ health and safety, anti-discrimina- 22 tion, and right to organize. 23 (3) RELATION TO CONSOLIDATED PLAN.—An 24 eligible entity shall include in an application sub- 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 8 •S 1368 IS mitted under paragraph (1) a description of how the 1 planning and development of eligible activities de- 2 scribed in subsection (c) may advance an objective, 3 or an aspect of an objective, included in the com- 4 prehensive housing affordability strategy and com- 5 munity development plan of the eligible entity under 6 part 91 of title 24, Code of Federal Regulations, or 7 any successor regulation (commonly referred to as a 8 ‘‘consolidated plan’’). 9 (e) LABOR LAWS.— 10 (1) IN GENERAL.—All laborers and mechanics 11 employed by contractors or subcontractors in the 12 performance of construction work financed in whole 13 or in part with a grant received under this section 14 shall be paid wages at rates not less than those pre- 15 vailing on similar construction in the locality, as de- 16 termined by the Secretary of Labor in accordance 17 with subchapter IV of chapter 31 of title 40, United 18 States Code (commonly known as the ‘‘Davis-Bacon 19 Act’’). 20 (2) AUTHORITY AND FUNCTIONS.—With re- 21 spect to the labor standards specified in paragraph 22 (1), the Secretary of Labor shall have the authority 23 and functions set forth in Reorganization Plan 24 Numbered 14 of 1950 (64 Stat. 1267; 5 U.S.C. 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 9 •S 1368 IS App.) and section 3145 of title 40, United States 1 Code. 2 (f) AUTHORIZATION OF APPROPRIATIONS.—There is 3 authorized to be appropriated to carry out this section 4 $2,000,000,000 for each of fiscal years 2022 through 5 2026. 6 SEC. 102. INVESTING IN AFFORDABLE HOUSING INFRA- 7 STRUCTURE. 8 (a) HOUSING TRUST FUND.—Section 1338(a) of the 9 Federal Housing Enterprises Financial Safety and Sound- 10 ness Act of 1992 (12 U.S.C. 4568(a)) is amended by add- 11 ing at the end the following: 12 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.— 13 There is authorized to be appropriated to the Hous- 14 ing Trust Fund $44,500,000,000 for each of fiscal 15 years 2022 through 2031.’’. 16 (b) CAPITAL MAGNET FUND.—Section 1339 of the 17 Federal Housing Enterprises Financial Safety and Sound- 18 ness Act of 1992 (12 U.S.C. 4569) is amended by adding 19 at the end the following: 20 ‘‘(k) AUTHORIZATION OF APPROPRIATIONS.—There 21 is authorized to be appropriated to the Capital Magnet 22 Fund $2,500,000,000 for each of fiscal years 2022 23 through 2031.’’. 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 10 •S 1368 IS (c) PUBLIC HOUSING CAPITAL FUND.—Section 1 9(c)(2)(A) of the United States Housing Act of 1937 (42 2 U.S.C. 1437g(c)(2)(A)) is amended to read as follows: 3 ‘‘(A) CAPITAL FUND.—For allocations of 4 assistance from the Capital Fund, 5 $3,592,000,000 for fiscal year 2022.’’. 6 (d) INDIAN HOUSING BLOCK GRANT PROGRAM.— 7 Section 108 of the Native American Housing Assistance 8 and Self-Determination Act of 1996 (25 U.S.C. 4117) is 9 amended— 10 (1) by striking ‘‘such sums as may be necessary 11 for each of fiscal years 2009 through 2013’’ and in- 12 serting ‘‘$2,500,000,000 for fiscal year 2022 and 13 such sums as may be necessary for each of fiscal 14 years 2023 through 2031’’; and 15 (2) by striking the second sentence. 16 (e) NATIVE HAWAIIAN HOUSING BLOCK GRANT PRO- 17 GRAM.—Section 824 of the Native American Housing As- 18 sistance and Self-Determination Act of 1996 (25 U.S.C. 19 4243) is amended by striking ‘‘such sums as may be nec- 20 essary for each of fiscal years 2001, 2002, 2003, 2004, 21 and 2005’’ and inserting ‘‘20,000,000 for fiscal year 2022 22 and such sums as may be necessary for each of fiscal years 23 2023 through 2031’’. 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 11 •S 1368 IS (f) RURAL HOUSING PROGRAMS.—Out of funds in 1 the Treasury not otherwise appropriated, there is appro- 2 priated for fiscal year 2022— 3 (1) to provide direct loans under section 502 of 4 the Housing Act of 1949 (42 U.S.C. 1472), 5 $140,000,000; 6 (2) to provide assistance under section 514 of 7 such Act (42 U.S.C. 1484), $28,000,000; 8 (3) to provide assistance under section 515 of 9 such Act (42 U.S.C. 1485), $140,000,000; 10 (4) to provide assistance under section 516 of 11 such Act (42 U.S.C. 1486), $20,000,000; 12 (5) to provide grants under section 523 of such 13 Act (42 U.S.C. 1490c), $75,000,000; and 14 (6) to provide funding to carry out the Multi- 15 family Preservation and Revitalization Demonstra- 16 tion Program of the Rural Housing Service (as au- 17 thorized under sections 514, 515, and 516 of such 18 Act (42 U.S.C. 1484, 1485, 1486)), $120,000,000. 19 (g) MIDDLE CLASS HOUSING EMERGENCY FUND.— 20 (1) DEFINITIONS.—In this subsection— 21 (A) the term ‘‘affordable rental housing 22 unit’’ means a unit for which monthly rent is 23 30 percent or less than the monthly area me- 24 dian income; and 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 12 •S 1368 IS (B) the term ‘‘State’’ has the meaning 1 given the term in section 3(b)(7) of the United 2 States Housing Act of 1937 (42 U.S.C. 3 1437a(b)(7)). 4 (2) ESTABLISHMENT.—The Secretary of Hous- 5 ing and Urban Development shall establish and 6 manage a fund, to be known as the ‘‘Middle Class 7 Housing Emergency Fund’’, which shall be funded 8 with any amounts as may be appropriated, trans- 9 ferred, or credited to the Fund under any provision 10 law. 11 (3) GRANTS.—From amounts available in the 12 fund established under paragraph (2), the Secretary 13 of Housing and Urban Development shall award 14 grants on a competitive basis to State housing fi- 15 nance agencies located in a State in which— 16 (A) there is a shortage of affordable rental 17 housing units available to individuals with an 18 income that is at or below the area median in- 19 come and median rents have risen on average 20 over the preceding 5 years substantially faster 21 than the area median income; or 22 (B) there is a shortage of housing units 23 available for sale that are affordable to individ- 24 uals with an income that is at or below the area 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 13 •S 1368 IS median income and median home prices have 1 risen on average over the preceding 5 years 2 substantially faster than the area median in- 3 come. 4 (4) USE OF FUNDS.—Grants received under 5 this subsection shall be used to fund— 6 (A) the construction or acquisition, by non- 7 profit organizations, State or local agencies, 8 special-purpose units of local government, resi- 9 dent councils organized to acquire housing, and 10 other qualified purchasers (as defined by the 11 Secretary), of rental housing units or units for 12 purchase that are affordable to residents mak- 13 ing less than 120 percent of the area median 14 income; and 15 (B) measures to prevent tenant displace- 16 ment and harassment, including— 17 (i) the provision of legal advice and 18 representation for tenants facing eviction; 19 (ii) enforcement of anti-harassment 20 laws; 21 (iii) emergency rental assistance; and 22 (iv) other measures as specified by the 23 Secretary of Housing and Urban Develop- 24 ment. 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 14 •S 1368 IS (5) LABOR LAWS.— 1 (A) IN GENERAL.—All laborers and me- 2 chanics employed by contractors or subcontrac- 3 tors in the performance of construction work fi- 4 nanced in whole or in part with a grant received 5 under this subsection shall be paid wages at 6 rates not less than those prevailing on similar 7 construction in the locality as determined by 8 the Secretary of Labor in accordance with sub- 9 chapter IV of chapter 31 of title 40, United 10 States Code (commonly known as the ‘‘Davis- 11 Bacon Act’’). 12 (B) AUTHORITY AND FUNCTIONS.—With 13 respect to the labor standards specified in sub- 14 paragraph (A), the Secretary of Labor shall 15 have the authority and functions set forth in 16 Reorganization Plan Numbered 14 of 1950 (64 17 Stat. 1267; 5 U.S.C. App.) and section 3145 of 18 title 40, United States Code. 19 (6) REGULATIONS.—The Secretary of Housing 20 and Urban Development shall promulgate regula- 21 tions to carry out this subsection that include— 22 (A) the metrics that the Secretary will use 23 to determine eligibility for a grant under this 24 subsection; 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 15 •S 1368 IS (B) a requirement that grantees and sub- 1 grantees consult with impacted communities in 2 policymaking and planning for the construction 3 or acquisition of housing units as described in 4 paragraph 4(A); and 5 (C) a requirement that all housing units 6 constructed or acquired using grants awarded 7 under the subsection are affordable to residents 8 making less than 120 percent of the area me- 9 dian income in perpetuity. 10 (7) APPROPRIATIONS.—Out of funds in the 11 Treasury not otherwise appropriated, there is appro- 12 priated to the fund established under this subsection 13 $4,000,000,000 for fiscal year 2022. 14 SEC. 103. CONDITIONS FOR THE SALE OF REAL ESTATE- 15 OWNED PROPERTIES AND NON-PERFORMING 16 LOANS. 17 (a) FINDINGS.—Congress finds that— 18 (1) the Federal Housing Administration, the 19 Federal National Mortgage Association, and the 20 Federal Home Loan Mortgage Corporation provide 21 critical homeownership opportunities that greatly 22 benefit individuals, families, and communities; and 23 (2) it is the purpose of this section to— 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 16 •S 1368 IS (A) preserve owner-occupied homes with 1 mortgages insured by the Federal Housing Ad- 2 ministration or purchased by the Federal Na- 3 tional Mortgage Association or the Federal 4 Home Loan Mortgage Corporation for contin- 5 ued use as owner-occupied homes; and 6 (B) direct that, upon the sale of those 7 properties or transfer of those mortgages, cer- 8 tain percentages of those properties are sold to 9 low- and moderate-income homeowners. 10 (b) LOANS INSURED BY THE FEDERAL HOUSING AD- 11 MINISTRATION.—Title II of the National Housing Act (12 12 U.S.C. 1707 et seq.) is amended by adding at the end 13 the following: 14 ‘‘SEC. 259. SALE OF REAL ESTATE-OWNED PROPERTIES. 15 ‘‘(a) DEFINITIONS.—In this section— 16 ‘‘(1) the term ‘Claim Without Conveyance of 17 Title program’ means the program of the Federal 18 Housing Administration carried out under section 19 203.368 of title 24, Code of Federal Regulations, or 20 any successor regulation; and 21 ‘‘(2) the term ‘community partner’ has the 22 meaning given the term ‘nonprofit organization’ in 23 section 229 of the Low-Income Housing Preserva- 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 17 •S 1368 IS tion and Resident Homeownership Act of 1990 (12 1 U.S.C. 4119). 2 ‘‘(b) REQUIREMENT.—Not later than 1 year after the 3 date of enactment of this section, the Secretary shall de- 4 velop programs within the Federal Housing Administra- 5 tion to ensure that not less than 75 percent of the single- 6 family residential properties conveyed to the Federal 7 Housing Administration after foreclosure or conveyed to 8 third parties under the Claim Without Conveyance of Title 9 program are sold— 10 ‘‘(1) directly to an owner-occupant; or 11 ‘‘(2) to community partners that will— 12 ‘‘(A) rehabilitate or develop the property; 13 and 14 ‘‘(B) sell the property to an owner-occu- 15 pant. 16 ‘‘(c) GUIDELINES.—Not later than 1 year after the 17 date of enactment of this section, the Secretary shall de- 18 velop guidelines for the Claim Without Conveyance of Title 19 program that provide an exclusive listing period during 20 which only eligible Governmental Entities, HUD-approved 21 Nonprofit Organizations, and Owner-Occupant Buyers 22 may submit bids. 23 ‘‘(d) ANTI-PREDATORY FEATURE.—Unless the Sec- 24 retary provides prior approval, the Secretary shall prohibit 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 18 •S 1368 IS any purchaser of a real estate-owned property of the Fed- 1 eral Housing Administration from reselling the property 2 within 15 years of purchase using a land installment con- 3 tract or through any other mechanism that does not trans- 4 fer title to the buyer at the time of sale. 5 ‘‘SEC. 260. SALE OF NON-PERFORMING LOANS. 6 ‘‘(a) DEFINITION.—In this section, the term ‘commu- 7 nity partner’ has the meaning given the term in section 8 259. 9 ‘‘(b) RESTRICTION ON SALE OR TRANSFER.—Except 10 as provided in this section, the Secretary may not sell or 11 transfer any mortgage insured under this title that is se- 12 cured by a single-family residential property (in this sec- 13 tion referred to as a ‘covered mortgage’). 14 ‘‘(c) CONDITIONS FOR SALE OR TRANSFER.— 15 ‘‘(1) IN GENERAL.—The Secretary— 16 ‘‘(A) may sell or transfer a covered mort- 17 gage only if— 18 ‘‘(i) the capital level of the Fund is 19 substantially below the capital ratio re- 20 quired under section 205(f)(2); 21 ‘‘(ii) the Secretary certifies that other 22 reasonable measures are not available to 23 restore the Fund to that capital ratio; and 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 19 •S 1368 IS ‘‘(iii) the Secretary complies with 1 paragraph (2)(C), if applicable; and 2 ‘‘(B) may sell or transfer only such covered 3 mortgages as are necessary to assist in restora- 4 tion of that capital ratio. 5 ‘‘(2) REQUIREMENTS FOR THE SECRETARY.— 6 ‘‘(A) IN GENERAL.—If the Secretary in- 7 tends to sell or transfer a covered mortgage, the 8 Secretary shall provide the current borrower 9 and all owners of record of the property secur- 10 ing the covered mortgage, or require that the 11 current borrower and owners of record be pro- 12 vided, a separate written notice of the intent to 13 sell the covered mortgage that— 14 ‘‘(i) is mailed via certified and first 15 class mail not less than 90 days before the 16 date on which the loan is included in any 17 proposed sale; and 18 ‘‘(ii) includes— 19 ‘‘(I) a description of the loss 20 mitigation options of the Federal 21 Housing Administration that are 22 available to borrowers in financial dis- 23 tress and the obligation of servicers to 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 20 •S 1368 IS consider borrowers in default for those 1 options; 2 ‘‘(II) a description of the actions 3 that the servicer of the loan has taken 4 to review and implement those options 5 for the borrower; and 6 ‘‘(III) a description of the proce- 7 dures the borrower may use to contest 8 with the Secretary the compliance by 9 the servicer with that obligation. 10 ‘‘(B) JUDICIAL REVIEW.—The determina- 11 tion of the Secretary to authorize the sale of a 12 mortgage insured under this title shall be re- 13 viewable under chapter 7 of title 5, United 14 States Code, for abuse of discretion and arbi- 15 trary and capricious agency action. 16 ‘‘(C) AUCTIONS.—The Secretary may not 17 sell any covered mortgage through any type of 18 non-performing loan sale auction program until 19 the Secretary issues rules, through the notice 20 and comment rule making procedures under 21 section 553 of title 5, United States Code, that 22 address essential aspects of any non-performing 23 loan sale program, including— 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 21 •S 1368 IS ‘‘(i) the method of selection of loans 1 for sale; 2 ‘‘(ii) notice to borrowers prior to in- 3 clusion of the loan in a sale; and 4 ‘‘(iii) review of loss mitigation status 5 prior to the sale, selection of eligible bid- 6 ders, loss mitigation guidelines applicable 7 to loan purchasers, and reporting require- 8 ments for purchasers. 9 ‘‘(3) CERTIFICATION REQUIREMENT FOR LEND- 10 ERS AND SERVICERS.— 11 ‘‘(A) CERTIFICATION.—As a condition to 12 payment of an insurance claim under this title 13 in connection with any non-performing loan 14 sale, the lender or servicer of the loan shall pro- 15 vide the Secretary and the borrower with writ- 16 ten certification of the loss mitigation review 17 contained in the FHA Single Family Housing 18 Policy Handbook 4000.1, or any successor 19 handbook. 20 ‘‘(B) FALSE STATEMENTS.— 21 ‘‘(i) IN GENERAL.—Any false state- 22 ment provided in a certification described 23 in subparagraph (A) shall be a basis for— 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 22 •S 1368 IS ‘‘(I) recovery by the Secretary of 1 any amounts paid under the insurance 2 claim and any other penalties and 3 sanctions authorized under Federal 4 law; and 5 ‘‘(II) a private right of action by 6 the borrower against the lender and 7 servicer, with remedies to include 8 compensatory and punitive damages 9 and an assessment of costs and attor- 10 ney’s fees. 11 ‘‘(ii) TRANSFERS.—Unless a bona fide 12 purchaser has acquired title to the prop- 13 erty as a primary residence— 14 ‘‘(I) a certification described in 15 subparagraph (A) that contains a 16 false statement shall be a basis for re- 17 voking the transfer of the property; 18 and 19 ‘‘(II) the pre-sale lender and 20 servicer of the property shall— 21 ‘‘(aa) resume servicing the 22 loan as a loan insured under this 23 title; and 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00022 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 23 •S 1368 IS ‘‘(bb) reimburse the Sec- 1 retary for any insurance claim 2 paid and all costs related to the 3 sale of the property. 4 ‘‘(4) REQUIREMENTS FOR PURCHASERS.— 5 ‘‘(A) IN GENERAL.—Each purchaser of a 6 covered mortgage shall offer the borrower on 7 the covered mortgage— 8 ‘‘(i) appropriate loss mitigation op- 9 tions, including affordable and sustainable 10 loan modifications; and 11 ‘‘(ii) the opportunity for a short sale 12 or a deed in lieu of foreclosure. 13 ‘‘(B) LOSS MITIGATION OPTIONS.—The 14 specific formula, calculations, waterfall steps, 15 and other terms for appropriate loss mitigation 16 options described in subparagraph (A) shall be 17 published by the Secretary, made available to 18 the public, and included in a written notice 19 given to borrowers before any acceleration or 20 foreclosure is initiated after a loan sale. 21 ‘‘(5) REQUIREMENTS FOR TRANSFEREES.— 22 With respect to a transferee, including any subse- 23 quent transferee, of a covered mortgage that is sold 24 under this title— 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 24 •S 1368 IS ‘‘(A) the transferee shall certify in writing 1 to the Secretary that the transferee will comply 2 with the provisions of this section in the mar- 3 keting and transfer of any property received in 4 the disposition of any transferred loan; 5 ‘‘(B) the transferee shall provide to the 6 Secretary records documenting that the trans- 7 fers of those properties are in compliance with 8 this section; and 9 ‘‘(C) the failure of the Secretary or the 10 transferee to comply with the requirements 11 under this section for a loan in default shall be 12 a defense to foreclosure, and a transferee may 13 not execute a foreclosure judgment or order of 14 sale, or conduct a foreclosure sale, until the 15 transferee has complied with all requirements 16 under this section. 17 ‘‘(d) LIMITATIONS.—With respect to covered mort- 18 gages that are sold under this title and foreclosed upon 19 by the buyer, not less than 90 percent of the properties 20 that are the subject of the covered mortgages in an auc- 21 tion shall be— 22 ‘‘(1) sold to owner-occupants; 23 ‘‘(2) operated or transferred to an entity that 24 will operate the property as affordable rental hous- 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 25 •S 1368 IS ing for households below 80 percent of the area me- 1 dian income for a period of not less than 15 years; 2 or 3 ‘‘(3) transferred or donated to a nonprofit 4 agency that is certified by the Secretary and will re- 5 develop the property for owner occupancy or afford- 6 able rental housing. 7 ‘‘(e) PRIORITIZATION OF SALES.—The Secretary 8 shall implement policies, procedures, and controls to— 9 ‘‘(1) identify and recruit community partners; 10 ‘‘(2) engage in consultations with community 11 partners before the sale of a pool of covered mort- 12 gages under this title to determine whether that sale 13 can be designed to meet the specific needs of the 14 communities served by the community partners; and 15 ‘‘(3) prioritize the sale of pools of single-family 16 mortgages to community partners by— 17 ‘‘(A) designing pools of covered mortgages 18 for direct sale to a community partner, the 19 price of which shall be set by the Secretary 20 based on a pricing model that considers— 21 ‘‘(i) the current fair market value of 22 the properties; and 23 ‘‘(ii) the potential impact of fore- 24 closures on those properties to the value of 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 26 •S 1368 IS other homes that secure mortgages insured 1 under this title in the same census tract; 2 or 3 ‘‘(B) in the case of an auction, if the win- 4 ning bid is not from a community partner, per- 5 mitting any community partner that bid during 6 that same auction to have a final opportunity to 7 enter a higher bid on the pool.’’. 8 (c) FANNIE MAE.—Section 302 of the Federal Na- 9 tional Mortgage Association Charter Act (12 U.S.C. 1717) 10 is amended by adding at the end the following: 11 ‘‘(d)(1) The corporation may not sell or transfer any 12 mortgage that is secured by a single-family residential 13 property (in this subsection referred to as a ‘covered mort- 14 gage’) under this section unless the requirements of this 15 subsection are met. 16 ‘‘(2)(A) If the corporation intends to sell or transfer 17 a covered mortgage, the corporation shall provide the cur- 18 rent borrower and all owners of record of the property se- 19 curing the covered mortgage, or require that the current 20 borrower and owners of record be provided, a separate 21 written notice of the intent to sell the covered mortgage 22 that— 23 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 27 •S 1368 IS ‘‘(i) is mailed via certified and first class mail 1 not less than 90 days before the date on which the 2 loan is included in any proposed sale; and 3 ‘‘(ii) includes— 4 ‘‘(I) a description of the loss mitigation op- 5 tions of the corporation that are available to 6 borrowers in financial distress and the obliga- 7 tion of servicers to consider borrowers in de- 8 fault for those options; 9 ‘‘(II) a description of the actions that the 10 servicer of the loan has taken to review and im- 11 plement those options for the borrower; and 12 ‘‘(III) a description of the procedures the 13 borrower may use to contest with the corpora- 14 tion the compliance by the servicer with that 15 obligation. 16 ‘‘(B) The corporation may not sell any covered mort- 17 gage through any type of non-performing loan sale auction 18 program until the corporation issues rules, through the no- 19 tice and comment rule making procedures under section 20 553 of title 5, United States Code, that address essential 21 aspects of any non-performing loan sale program, includ- 22 ing— 23 ‘‘(i) the method of selection of loans for sale; 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 28 •S 1368 IS ‘‘(ii) notice to borrowers prior to inclusion of 1 the loan in a sale; and 2 ‘‘(iii) review of loss mitigation status prior to 3 the sale, selection of eligible bidders, loss mitigation 4 guidelines applicable to loan purchasers, and report- 5 ing requirements for purchasers. 6 ‘‘(3)(A) Each purchaser of a covered mortgage shall 7 offer the borrower on the covered mortgage— 8 ‘‘(i) appropriate loss mitigation options, includ- 9 ing affordable and sustainable loan modifications; 10 and 11 ‘‘(ii) the opportunity for a short sale or a deed 12 in lieu of foreclosure. 13 ‘‘(B) The specific formula, calculations, waterfall 14 steps, and other terms for appropriate loss mitigation op- 15 tions described in subparagraph (A) shall be published by 16 the corporation, made available to the public, and included 17 in a written notice given to borrowers before any accelera- 18 tion or foreclosure is initiated after a loan sale. 19 ‘‘(4) With respect to a transferee, including any sub- 20 sequent transferee, of a covered mortgage that is sold by 21 the corporation under this section— 22 ‘‘(A) the transferee shall certify in writing to 23 the corporation that the transferee will comply with 24 the provisions of this subsection in the marketing 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 29 •S 1368 IS and transfer of any property received in the disposi- 1 tion of any transferred loan; 2 ‘‘(B) the transferee shall provide to the corpora- 3 tion records documenting that the transfers of those 4 properties are in compliance with this subsection; 5 and 6 ‘‘(C) the failure of the corporation or the trans- 7 feree to comply with the requirements under this 8 subsection for a loan in default shall be a defense to 9 foreclosure, and a transferee may not execute a fore- 10 closure judgment or order of sale, or conduct a fore- 11 closure sale, until the transferee has complied with 12 all requirements under this subsection. 13 ‘‘(5) With respect to covered mortgages that are sold 14 by the corporation under this section and foreclosed upon 15 by the buyer, not less than 90 percent of the properties 16 that are the subject of the covered mortgages in an auc- 17 tion shall be— 18 ‘‘(A) sold to owner-occupants; 19 ‘‘(B) operated or transferred to an entity that 20 will operate the property as affordable rental hous- 21 ing for households below 80 percent of the area me- 22 dian income for a period of not less than 15 years; 23 or 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00029 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 30 •S 1368 IS ‘‘(C) transferred or donated to a nonprofit 1 agency that is certified by the corporation and will 2 redevelop the property for owner occupancy or af- 3 fordable rental housing. 4 ‘‘(6) The corporation shall implement policies, proce- 5 dures, and controls to— 6 ‘‘(A) identify and recruit community partners; 7 ‘‘(B) engage in consultations with community 8 partners before the sale of a pool of covered mort- 9 gages under this section to determine whether that 10 sale can be designed to meet the specific needs of 11 the communities served by the community partners; 12 and 13 ‘‘(C) prioritize the sale of pools of single-family 14 mortgages to community partners by— 15 ‘‘(i) designing pools of covered mortgages 16 for direct sale to a community partner, the 17 price of which shall be set by the corporation 18 based on a pricing model that considers— 19 ‘‘(I) the current fair market value of 20 the properties; and 21 ‘‘(II) the potential impact of fore- 22 closures on those properties to the value of 23 other homes in the same census tract; or 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00030 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 31 •S 1368 IS ‘‘(ii) in the case of an auction, if the win- 1 ning bid is not from a community partner, per- 2 mitting any community partner that bid during 3 that same auction to have a final opportunity to 4 enter a higher bid on the pool.’’. 5 (d) FREDDIE MAC.—Section 305 of the Federal 6 Home Loan Mortgage Corporation Act (12 U.S.C. 1454) 7 is amended by adding at the end the following: 8 ‘‘(e)(1) The Corporation may not sell or transfer any 9 mortgage that is secured by a single-family residential 10 property (in this subsection referred to as a ‘covered mort- 11 gage’) under this section unless the requirements of this 12 subsection are met. 13 ‘‘(2)(A) If the Corporation intends to sell or transfer 14 a covered mortgage, the Corporation shall provide the cur- 15 rent borrower and all owners of record of the property se- 16 curing the covered mortgage, or require that the current 17 borrower and owners of record be provided, a separate 18 written notice of the intent to sell the covered mortgage 19 that— 20 ‘‘(i) is mailed via certified and first class mail 21 not less than 90 days before the date on which the 22 loan is included in any proposed sale; and 23 ‘‘(ii) includes— 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 32 •S 1368 IS ‘‘(I) a description of the loss mitigation op- 1 tions of the Corporation that are available to 2 borrowers in financial distress and the obliga- 3 tion of servicers to consider borrowers in de- 4 fault for those options; 5 ‘‘(II) a description of the actions that the 6 servicer of the loan has taken to review and im- 7 plement those options for the borrower; and 8 ‘‘(III) a description of the procedures the 9 borrower may use to contest with the Corpora- 10 tion the compliance by the servicer with that 11 obligation. 12 ‘‘(B) The Corporation may not sell any covered mort- 13 gage through any type of non-performing loan sale auction 14 program until the Corporation issues rules, through the 15 notice and comment rule making procedures under section 16 553 of title 5, United States Code, that address essential 17 aspects of any non-performing loan sale program, includ- 18 ing— 19 ‘‘(i) the method of selection of loans for sale; 20 ‘‘(ii) notice to borrowers prior to inclusion of 21 the loan in a sale; and 22 ‘‘(iii) review of loss mitigation status prior to 23 the sale, selection of eligible bidders, loss mitigation 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 33 •S 1368 IS guidelines applicable to loan purchasers, and report- 1 ing requirements for purchasers. 2 ‘‘(3)(A) Each purchaser of a covered mortgage shall 3 offer the borrower on the covered mortgage— 4 ‘‘(i) appropriate loss mitigation options, includ- 5 ing affordable and sustainable loan modifications; 6 and 7 ‘‘(ii) the opportunity for a short sale or a deed 8 in lieu of foreclosure. 9 ‘‘(B) The specific formula, calculations, waterfall 10 steps, and other terms for appropriate loss mitigation op- 11 tions described in subparagraph (A) shall be published by 12 the Corporation, made available to the public, and in- 13 cluded in a written notice given to borrowers before any 14 acceleration or foreclosure is initiated after a loan sale. 15 ‘‘(4) With respect to a transferee, including any sub- 16 sequent transferee, of a covered mortgage that is sold by 17 the Corporation under this section— 18 ‘‘(A) the transferee shall certify in writing to 19 the Corporation that the transferee will comply with 20 the provisions of this subsection in the marketing 21 and transfer of any property received in the disposi- 22 tion of any transferred loan; 23 ‘‘(B) the transferee shall provide to the Cor- 24 poration records documenting that the transfers of 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00033 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 34 •S 1368 IS those properties are in compliance with this sub- 1 section; and 2 ‘‘(C) the failure of the Corporation or the trans- 3 feree to comply with the requirements under this 4 subsection for a loan in default shall be a defense to 5 foreclosure, and a transferee may not execute a fore- 6 closure judgment or order of sale, or conduct a fore- 7 closure sale, until the transferee has complied with 8 all requirements under this subsection. 9 ‘‘(5) With respect to covered mortgages that are sold 10 by the Corporation under this section and foreclosed upon 11 by the buyer, not less than 90 percent of the properties 12 that are the subject of the covered mortgages in an auc- 13 tion shall be— 14 ‘‘(A) sold to owner-occupants; 15 ‘‘(B) operated or transferred to an entity that 16 will operate the property as affordable rental hous- 17 ing for households below 80 percent of the area me- 18 dian income for a period of not less than 15 years; 19 or 20 ‘‘(C) transferred or donated to a nonprofit 21 agency that is certified by the Corporation and will 22 redevelop the property for owner occupancy or af- 23 fordable rental housing. 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00034 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 35 •S 1368 IS ‘‘(6) The Corporation shall implement policies, proce- 1 dures, and controls to— 2 ‘‘(A) identify and recruit community partners; 3 ‘‘(B) engage in consultations with community 4 partners before the sale of a pool of covered mort- 5 gages under this section to determine whether that 6 sale can be designed to meet the specific needs of 7 the communities served by the community partners; 8 and 9 ‘‘(C) prioritize the sale of pools of single-family 10 mortgages to community partners by— 11 ‘‘(i) designing pools of covered mortgages 12 for direct sale to a community partner, the 13 price of which shall be set by the Corporation 14 based on a pricing model that considers— 15 ‘‘(I) the current fair market value of 16 the properties; and 17 ‘‘(II) the potential impact of fore- 18 closures on those properties to the value of 19 other homes in the same census tract; or 20 ‘‘(ii) in the case of an auction, if the win- 21 ning bid is not from a community partner, per- 22 mitting any community partner that bid during 23 that same auction to have a final opportunity to 24 enter a higher bid on the pool.’’. 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00035 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 36 •S 1368 IS 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 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00036 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 37 •S 1368 IS (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 typical White family has 8 21 times the wealth of the typical Black family. The 22 gap between the White homeownership rate and the 23 Black homeownership rate is bigger today than it 24 was when housing discrimination was legal. Nearly 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00037 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 38 •S 1368 IS 75 percent of formerly redlined communities are low- 1 or moderate-income and 64 percent are still commu- 2 nities of color. 3 (8) The purpose of this section is for the Fed- 4 eral Government to take the first step toward ad- 5 dressing the racial wealth gap that it contributed to 6 creating by helping individuals or descendants of in- 7 dividuals who were harmed by housing discrimina- 8 tion or negligence by the Federal Government. 9 (b) DEFINITIONS.—In this section: 10 (1) ELIGIBLE RESIDENT.—The term ‘‘eligible 11 resident’’ means a resident of a geographic area, as 12 defined by the Secretary by regulation under sub- 13 section (h), who— 14 (A) is a first-time homebuyer; 15 (B) has an income that is less than 120 16 percent of the area median income; and 17 (C)(i) resided in that geographic area 18 throughout the 4-year period ending on the 19 date of enactment of this Act; 20 (ii) resided in that geographic area for a 21 period of not less than 4 years before moving 22 out of the geographic area subsequent to a fore- 23 closure, short sale, or deed in lieu of foreclosure 24 on a home that— 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00038 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 39 •S 1368 IS (I) was the primary residence of the 1 resident; and 2 (II) was purchased or refinanced dur- 3 ing the period beginning on January 1, 4 2001, and ending on December 31, 2008; 5 or 6 (iii) resided in that geographic area for a 7 period of not less than 4 years before moving 8 out of the geographic area due to a major dis- 9 aster declared by the President or a State, ter- 10 ritorial, or Tribal government. 11 (2) FIRST-TIME HOMEBUYER.—The term ‘‘first- 12 time homebuyer’’ means an individual (and if mar- 13 ried, the spouse of the individual) who— 14 (A) intends to purchase a property for use 15 as a principal residence; and 16 (B) during the 3-year period ending on the 17 date of purchase of the property described in 18 subparagraph (B)— 19 (i) has had no ownership in a prin- 20 cipal residence; or 21 (ii) surrendered an ownership interest 22 in a principal residence as part of a divorce 23 proceeding. 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00039 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 40 •S 1368 IS (3) LOW-INCOME COMMUNITY.—The term ‘‘low- 1 income community’’ has the meaning given the term 2 in section 45D of the Internal Revenue Code of 3 1986. 4 (4) SECRETARY.—The term ‘‘Secretary’’ means 5 the Secretary of Housing and Urban Development. 6 (c) ESTABLISHMENT.—There is established in the 7 Treasury of the United States a fund that— 8 (1) shall be administered by the Secretary, act- 9 ing through the Office of Housing of the Depart- 10 ment of Housing and Urban Development; and 11 (2) shall be used— 12 (A) to provide grants to eligible residents 13 to purchase homes; 14 (B) for outreach to financial institutions in 15 targeted areas and eligible residents, including 16 for the administration of that outreach; 17 (C) for counseling or financial education 18 administered by counseling agencies approved 19 by the Secretary in order to ensure sustainable 20 homeownership; 21 (D) to create and maintain the database 22 described in subsection (h)(3); and 23 (E) to maintain any records required to 24 implement this section. 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00040 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 41 •S 1368 IS (d) GRANT AMOUNT.—An eligible resident may re- 1 ceive a grant under subsection (c) in an amount equal to— 2 (1) not more than 3.5 percent of the appraised 3 value of the property to be purchased; or 4 (2) if the appraised value of the property to be 5 purchased exceeds the principal obligation amount 6 limitation for mortgages insured under title II of the 7 National Housing Act (12 U.S.C. 1707 et seq.), 3.5 8 percent of the maximum principal obligation limita- 9 tion for the property to be purchased. 10 (e) RELATION TO FHA LOAN.—An eligible resident 11 shall not be required to obtain a mortgage that is insured 12 under title II of the National Housing Act (12 U.S.C. 13 1707 et seq.) as a condition of receiving a grant under 14 subsection (c). 15 (f) GEOGRAPHIC AREA.—An eligible resident shall 16 not be required to purchase a home within the geographic 17 area described in subsection (b)(1)(C) as a condition of 18 receiving a grant under subsection (c). 19 (g) LAYERING OF ASSISTANCE.—Receipt by an eligi- 20 ble recipient of assistance for a down payment from a 21 source other than the fund established under subsection 22 (c), including assistance from the Federal Government, a 23 State or local government, or any other public, private, 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00041 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 42 •S 1368 IS or nonprofit source, shall not affect the eligibility of the 1 eligible recipient for assistance under subsection (c). 2 (h) REGULATIONS AND DATABASE.—Not later than 3 1 year after the date of enactment of this Act, the Sec- 4 retary shall— 5 (1) in consultation with interested parties, in- 6 cluding housing counseling agencies approved by the 7 Secretary and individuals or groups with expertise in 8 fair housing, promulgate regulations relating to the 9 use of the fund established under subsection (c), in- 10 cluding defining the geographic areas in which resi- 11 dents are eligible to receive grants under subsection 12 (c), which shall include— 13 (A) census tracts graded as ‘‘hazardous’’ 14 or ‘‘definitely declining’’ in maps drawn by the 15 Home Owners’ Loan Corporation that are, as of 16 the date of enactment of this Act, low-income 17 communities; 18 (B) census tracts that were designated for 19 non-White citizens in jurisdictions that histori- 20 cally had racially segregated zoning codes and 21 are, as of the date of enactment of this Act, 22 low-income communities; and 23 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00042 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 43 •S 1368 IS (C) census tracts that are racially or eth- 1 nically concentrated areas of poverty, which 2 shall mean a census tract— 3 (i) with a non-White population of not 4 less than 50 percent; and 5 (ii) in which— 6 (I) not less than 40 percent of 7 families living in the census tract have 8 incomes that are at or below the pov- 9 erty line; or 10 (II) the average tract poverty 11 rate is 3 or more times the average 12 tract poverty tract for the metropoli- 13 tan or micropolitan area; 14 (2) promulgate regulations relating to the dis- 15 bursement of funds under this section to ensure that 16 an eligible resident is able to receive funds before 17 the closing date for the home of the eligible resident, 18 which may include creating a program that allows a 19 lender to be reimbursed by the fund established 20 under subsection (c) if the lender— 21 (A) provides an eligible resident with funds 22 for the closing; or 23 (B) allows an eligible resident to be 24 preapproved to receive assistance under this 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00043 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 44 •S 1368 IS section when arranging financing for the home 1 of the eligible resident; 2 (3) create a publicly accessible database that al- 3 lows individuals, real estate professionals, and lend- 4 ers to determine whether a borrower is eligible for 5 assistance under this section; and 6 (4) establish methods to verify that an indi- 7 vidual is an eligible resident. 8 (i) APPROPRIATION.—Out of funds in the Treasury 9 not otherwise appropriated, there is appropriated to the 10 fund established under subsection (c) such sums as may 11 be necessary for each of fiscal years 2022 through 2031 12 to carry out the activities under subsection (c)(2). 13 (j) INCLUSION OF PROGRAM IN HOME BUYING IN- 14 FORMATION BOOKLETS.—Section 5(b) of the Real Estate 15 Settlement Procedures Act of 1974 (12 U.S.C. 2604(b)) 16 is amended by inserting after paragraph (14) the fol- 17 lowing: 18 ‘‘(15) Information relating to the down pay- 19 ment assistance program established under section 20 201 of the American Housing and Economic Mobil- 21 ity Act of 2021.’’. 22 (k) INCLUSION OF PROGRAM AS MORTGAGE PROD- 23 UCT.—Section 203(f)(1) of the National Housing Act (12 24 U.S.C. 1709(f)(1)) is amended by inserting ‘‘, including 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00044 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 45 •S 1368 IS the down payment assistance program established under 1 section 201 of the American Housing and Economic Mo- 2 bility Act of 2021,’’ after ‘‘mortgage products’’. 3 SEC. 202. FORMULA GRANT PROGRAM FOR COMMUNITIES 4 WITH AN APPRAISAL GAP. 5 (a) DEFINITIONS.—In this section— 6 (1) the term ‘‘neighborhood with an appraisal 7 gap’’ means a census tract in which the median sales 8 price of a dwelling unit is lower than the median 9 cost to acquire and rehabilitate, or build, a new 10 dwelling unit; 11 (2) the term ‘‘Secretary’’ means the Secretary 12 of Housing and Urban Development; and 13 (3) the term ‘‘State’’ has the meaning given the 14 term in section 3(b)(7) of the United States Hous- 15 ing Act of 1937 (42 U.S.C. 1437a(b)(7)). 16 (b) ESTABLISHMENT.—The Secretary shall establish 17 a formula grant program to provide funding to States to 18 support neighborhoods with an appraisal gap, including 19 borrowers with negative equity in their primary residence 20 in those neighborhoods, through— 21 (1) measures that provide funds to borrowers 22 to— 23 (A) pay down arrears on an otherwise af- 24 fordable loan; 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00045 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 46 •S 1368 IS (B) pay down arrears or principal on a 1 loan in order to qualify for a loan modification 2 that will allow the borrower to keep the home; 3 (C) pay off, or pay down part of, a second 4 mortgage or home equity line of credit; 5 (D) pay off a small-dollar mortgage; 6 (E) pay delinquent taxes and tax liens; 7 (F) pay off delinquent water or sewer bills 8 and liens; and 9 (G) pay for home repairs or maintenance 10 or for modifications to bring the home into 11 compliance with any applicable codes; and 12 (2) programs to purchase or rehabilitate vacant 13 or distressed properties to enhance neighborhood 14 property values. 15 (c) FORMULA.—The Secretary shall distribute 16 amounts under this section to States based on— 17 (1) the number of borrowers with a primary 18 residence with negative equity in each State; and 19 (2) the share of neighborhoods with an ap- 20 praisal gap in each State. 21 (d) AUTHORIZATION OF APPROPRIATIONS.—There is 22 authorized to be appropriated to carry out this section 23 $2,000,000,000 for fiscal year 2022. 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00046 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 47 •S 1368 IS SEC. 203. STRENGTHENING THE COMMUNITY REINVEST- 1 MENT ACT OF 1977. 2 (a) SHORT TITLE.—This section may be cited as the 3 ‘‘Community Reinvestment Reform Act of 2021’’. 4 (b) AMENDMENTS TO THE COMMUNITY REINVEST- 5 MENT ACT OF 1977.—The Community Reinvestment Act 6 of 1977 (12 U.S.C. 2901 et seq.) is amended— 7 (1) by striking sections 802 and 803 (12 U.S.C. 8 2901, 2902) and inserting the following: 9 ‘‘SEC. 802. FINDINGS AND PURPOSE. 10 ‘‘(a) FINDINGS.—Congress finds that— 11 ‘‘(1) regulated financial institutions are re- 12 quired by law to demonstrate that they serve the 13 convenience and needs of the communities in which 14 they are chartered or do business, in particular low- 15 and moderate-income communities; 16 ‘‘(2) the convenience and needs of communities 17 include the need for credit services, deposit services, 18 transaction services, other financial services, and 19 community development loans and investments; and 20 ‘‘(3) regulated financial institutions have a con- 21 tinuing and affirmative obligation to meet the credit 22 or other financial needs of the local communities in 23 which they are chartered or do business. 24 ‘‘(b) PURPOSE.—It is the purpose of this title to re- 25 quire each appropriate Federal financial supervisory agen- 26 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00047 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 48 •S 1368 IS cy to use its authority when examining regulated financial 1 institutions to ensure that those institutions meet the 2 credit and other financial needs of the local communities 3 in which they are chartered or do business consistent with 4 the safe and sound operation of those institutions. 5 ‘‘SEC. 803. DEFINITIONS. 6 ‘‘In this title: 7 ‘‘(1) APPLICATION FOR A DEPOSIT FACILITY.— 8 The term ‘application for a deposit facility’ means 9 an application to the appropriate Federal financial 10 supervisory agency otherwise required under Federal 11 law or regulations thereunder for— 12 ‘‘(A) a charter for a national bank or Fed- 13 eral savings and loan association; 14 ‘‘(B) deposit insurance in connection with 15 a newly chartered State bank, savings bank, 16 savings and loan association, or similar institu- 17 tion; 18 ‘‘(C) the establishment of a domestic 19 branch or other facility with the ability to ac- 20 cept deposits of a regulated financial institu- 21 tion; 22 ‘‘(D) the relocation of the home office or a 23 branch office of a regulated financial institu- 24 tion; 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00048 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 49 •S 1368 IS ‘‘(E) the merger or consolidation with, the 1 acquisition of the assets of, or the assumption 2 of the liabilities of a regulated financial institu- 3 tion requiring approval under section 18(c) of 4 the Federal Deposit Insurance Act (12 U.S.C. 5 1828(c)); or 6 ‘‘(F) the acquisition of shares in, or the as- 7 sets of, a regulated financial institution requir- 8 ing approval under section 3 of the Bank Hold- 9 ing Company Act of 1956 (12 U.S.C. 1842). 10 ‘‘(2) APPROPRIATE FEDERAL BANKING AGEN- 11 CY.—The term ‘appropriate Federal banking agency’ 12 has the meaning given the term in section 3 of the 13 Federal Deposit Insurance Act (12 U.S.C. 1813). 14 ‘‘(3) APPROPRIATE FEDERAL FINANCIAL SU- 15 PERVISORY AGENCY.—The term ‘appropriate Fed- 16 eral financial supervisory agency’ means— 17 ‘‘(A) the appropriate Federal banking 18 agency with respect to depository institutions 19 and depository institution holding companies; 20 and 21 ‘‘(B) the Bureau of Consumer Financial 22 Protection with respect to any covered person 23 supervised by the Bureau pursuant to section 24 1024 of the Dodd-Frank Wall Street Reform 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00049 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 50 •S 1368 IS and Consumer Protection Act (12 U.S.C. 1 5514). 2 ‘‘(4) ASSESSMENT AREA.—The term ‘assess- 3 ment area’ means, with respect to a regulated finan- 4 cial institution, each community, including a State, 5 metropolitan area, or urban or rural county, in 6 which the institution— 7 ‘‘(A) maintains deposit-taking branches, 8 automated teller machines, or retail offices; 9 ‘‘(B) is represented by an agent; 10 ‘‘(C) issues a significant number of loans 11 or other products relative to the total number 12 of loans or other products made by the institu- 13 tion; 14 ‘‘(D) has issued not less than 75 percent 15 of the loans of the institution; 16 ‘‘(E) has conducted not less than 75 per- 17 cent of the business of the institution; or 18 ‘‘(F) has received not less than 75 percent 19 of the deposits of the institution. 20 ‘‘(5) COMMUNITY BENEFITS PLAN.—The term 21 ‘community benefits plan’ means a plan that pro- 22 vides measurable goals for future amounts of safe 23 and sound loans, investments, services, and other fi- 24 nancial products for low- and moderate-income com- 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00050 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 51 •S 1368 IS munities and other distressed or underserved com- 1 munities. 2 ‘‘(6) COMMUNITY DEVELOPMENT.—The term 3 ‘community development’ includes— 4 ‘‘(A) affordable housing for low- or mod- 5 erate-income individuals and avoidance of pat- 6 terns of lending resulting in the loss of afford- 7 able housing units; 8 ‘‘(B) community development services, in- 9 cluding counseling and successful mortgage or 10 loan modifications of delinquent loans; 11 ‘‘(C) activities that promote integration; 12 ‘‘(D) activities that promote economic de- 13 velopment by financing small businesses or 14 farms that meet the size eligibility requirements 15 of the development company or small business 16 investment company programs under section 17 121.301 of title 13, Code of Federal Regula- 18 tions, or any successor regulation, with an em- 19 phasis on small businesses that have gross an- 20 nual revenues of not more than $1,000,000; 21 ‘‘(E) activities that revitalize or stabilize— 22 ‘‘(i) low- or moderate-income geog- 23 raphies; 24 ‘‘(ii) designated disaster areas; 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00051 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 52 •S 1368 IS ‘‘(iii) distressed or underserved non- 1 metropolitan middle-income geographies 2 designated by the Federal Financial Insti- 3 tutions Examination Council, based on— 4 ‘‘(I) rates of poverty, unemploy- 5 ment, and population loss; or 6 ‘‘(II) population size, density, 7 and dispersion, if those activities help 8 to meet essential community needs, 9 including the needs of low- and mod- 10 erate-income individuals; or 11 ‘‘(iv) other distressed or underserved 12 communities; 13 ‘‘(F) activities that promote physical, envi- 14 ronmental, and sensory accessibility in housing 15 stock that is integrated into the community; 16 and 17 ‘‘(G) other activities that promote the ob- 18 jectives of this title, as determined by the ap- 19 propriate Federal financial supervisory agen- 20 cies. 21 ‘‘(7) DEPOSITORY INSTITUTION; DEPOSITORY 22 INSTITUTION HOLDING COMPANY.—The terms ‘de- 23 pository institution’ and ‘depository institution hold- 24 ing company’ have the meanings given those terms 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00052 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 53 •S 1368 IS in section 3 of the Federal Deposit Insurance Act 1 (12 U.S.C. 1813). 2 ‘‘(8) ENTIRE COMMUNITY.—The term ‘entire 3 community’ means all of the assessment areas of a 4 regulated financial institution. 5 ‘‘(9) ENUMERATED CONSUMER LAWS.—The 6 term ‘enumerated consumer laws’ has the meaning 7 given the term in section 1002 of the Consumer Fi- 8 nancial Protection Act of 2010 (12 U.S.C. 5481). 9 ‘‘(10) GEOGRAPHY.—The term ‘geography’ 10 means a census tract delineated by the Bureau of 11 the Census in the most recent decennial census. 12 ‘‘(11) INSURED DEPOSITORY INSTITUTION.— 13 The term ‘insured depository institution’ has the 14 meaning given the term in section 3 of the Federal 15 Deposit Insurance Act (12 U.S.C. 1813). 16 ‘‘(12) OTHER DISTRESSED OR UNDERSERVED 17 COMMUNITY.—The term ‘other distressed or under- 18 served community’ means an area or census tract 19 that, according to a periodic review and data anal- 20 ysis by the appropriate Federal financial supervisory 21 agencies on an interagency basis through the Fed- 22 eral Financial Institutions Examination Council, is 23 experiencing economic hardship or is underserved by 24 financial institutions. 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00053 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 54 •S 1368 IS ‘‘(13) REGULATED FINANCIAL INSTITUTION.— 1 The term ‘regulated financial institution’ means— 2 ‘‘(A) an insured depository institution; 3 ‘‘(B) a depository institution holding com- 4 pany; and 5 ‘‘(C) a U.S. nonbank mortgage originator. 6 ‘‘(14) U.S. NONBANK MORTGAGE ORIGI- 7 NATOR.—The term ‘U.S. nonbank mortgage origi- 8 nator’ means a covered person subject to section 9 1024 of the Dodd-Frank Wall Street Reform and 10 Consumer Protection Act (12 U.S.C. 5514) that of- 11 fers or provides— 12 ‘‘(A) origination of loans secured by real 13 estate for use by consumers primarily for per- 14 sonal, family, or household purposes; or 15 ‘‘(B) loan modification or foreclosure relief 16 services in connection with a loan described in 17 subparagraph (A).’’; 18 (2) in section 804 (12 U.S.C. 2903)— 19 (A) by redesignating subsections (c) and 20 (d) as subsections (f) and (g), respectively; 21 (B) by striking subsections (a) and (b) and 22 inserting the following: 23 ‘‘(a) DEPOSITORY INSTITUTIONS AND BANK HOLD- 24 ING COMPANIES.—In connection with its examination of 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00054 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 55 •S 1368 IS a regulated financial institution other than a U.S. 1 nonbank mortgage originator, the appropriate Federal fi- 2 nancial supervisory agency shall perform the following: 3 ‘‘(1) Assess the record of the institution in 4 meeting the credit and other financial needs of its 5 entire community, in particular low- and moderate- 6 income people and communities, and other distressed 7 or underserved communities, consistent with the safe 8 and sound operation of the institution. 9 ‘‘(2) Assess the effectiveness of the following 10 activities in meeting the credit and other financial 11 needs of the assessment areas of the institution, con- 12 sistent with the safe and sound operation of the in- 13 stitution: 14 ‘‘(A) Retail lending, including home, small 15 business, consumer, and other lending and fi- 16 nancial products, that responds to credit needs 17 or other financial needs. 18 ‘‘(B) 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 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00055 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 56 •S 1368 IS main in affordable housing in their com- 1 munity; and 2 ‘‘(ii) the origination of loans by the 3 institution that result in the construction, 4 rehabilitation, or preservation of affordable 5 housing units. 6 ‘‘(C) Retail financial services and commu- 7 nity development services. 8 ‘‘(3) With respect to its evaluation of an appli- 9 cation for a deposit facility by the institution— 10 ‘‘(A) consider the record described in para- 11 graph (1), the overall rating of the institution 12 under this section, and any improvement plans 13 submitted pursuant to this section; 14 ‘‘(B) provide an opportunity for public 15 comment for a period of not less than 60 days; 16 ‘‘(C) consider changes in the community 17 reinvestment performance of the institution 18 since the most recent rating under this section 19 by the appropriate Federal financial supervisory 20 agency; and 21 ‘‘(D) require— 22 ‘‘(i) a demonstration of public benefit, 23 including a community benefits plan with 24 measurable goals regarding increasing re- 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00056 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 57 •S 1368 IS sponsible lending and other financial prod- 1 ucts that is commensurate with the ability 2 of the institution to accomplish those 3 goals; 4 ‘‘(ii) that the institution consult with 5 community-based organizations and other 6 community stakeholders in developing the 7 community benefits plan; and 8 ‘‘(iii) a public hearing for any institu- 9 tion that has a received a ‘need-to-improve’ 10 or ‘low satisfactory’ grade in any individual 11 assessment area during the most recent ex- 12 amination. 13 ‘‘(b) U.S. NONBANK MORTGAGE ORIGINATOR.—In 14 connection with its examination of a U.S. nonbank mort- 15 gage originator, the appropriate Federal financial super- 16 visory agency shall perform the following: 17 ‘‘(1) Assess the record of the U.S. nonbank 18 mortgage originator in meeting the credit or other 19 financial needs of its entire community, in particular 20 low-income and moderate-income people and commu- 21 nities and other distressed or underserved commu- 22 nities, consistent with the safe and sound operation 23 of the U.S. nonbank mortgage originator. 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00057 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 58 •S 1368 IS ‘‘(2) Assess, as appropriate, the following activi- 1 ties in the assessment areas of the U.S. nonbank 2 mortgage originator: 3 ‘‘(A) Retail lending, including home loans. 4 ‘‘(B) Community development services. 5 ‘‘(C) Community development lending and 6 investments, which may include a consideration 7 of— 8 ‘‘(i) the origination of loans and other 9 efforts by the institution to assist existing 10 low- and moderate-income residents to re- 11 main in affordable housing in their com- 12 munity; 13 ‘‘(ii) the origination of loans by the 14 institution that result in the construction, 15 rehabilitation or preservation of affordable 16 housing units; and 17 ‘‘(iii) investments in, grants to, or 18 loans to community development financial 19 institutions (as defined in section 103 of 20 the Community Development Banking and 21 Financial Institutions Act of 1994 (12 22 U.S.C. 4702)), community development 23 corporations (as defined in section 613 of 24 the Community Economic Development 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00058 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 59 •S 1368 IS Act of 1981 (42 U.S.C. 9802)), and other 1 nonprofit organizations serving the housing 2 and development needs of the community. 3 ‘‘(3) With respect to its evaluation of an appli- 4 cation for a deposit facility by the U.S. nonbank 5 mortgage originator— 6 ‘‘(A) consider the record described in para- 7 graph (1), the overall rating of the U.S. 8 nonbank mortgage originator under this sec- 9 tion, and any improvement plans submitted 10 pursuant to this section; 11 ‘‘(B) provide an opportunity for public 12 comment for a period of not less than 60 days; 13 ‘‘(C) consider changes in the community 14 reinvestment performance of the U.S. nonbank 15 mortgage originator since the most recent rat- 16 ing under this section by the appropriate Fed- 17 eral financial supervisory agency; and 18 ‘‘(D) require— 19 ‘‘(i) a demonstration that granting the 20 application for a deposit facility is in the 21 public interest, which shall include a sub- 22 mission of a community benefits plan, 23 which shall be commensurate with the abil- 24 ity of the institution to accomplish the 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00059 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 60 •S 1368 IS plan, by the U.S. nonbank mortgage origi- 1 nator to the appropriate Federal financial 2 supervisory agency; 3 ‘‘(ii) that the U.S. nonbank mortgage 4 originator consult with community-based 5 organizations and other community stake- 6 holders in developing the community bene- 7 fits plan; and 8 ‘‘(iii) a public hearing for any U.S. 9 nonbank mortgage originator that has a 10 received a ‘need-to-improve’ or ‘low satis- 11 factory’ grade in any individual assessment 12 area during the most recent examination. 13 ‘‘(c) REQUIREMENTS.— 14 ‘‘(1) IN GENERAL.—In connection with its ex- 15 amination of a regulated financial institution under 16 subsection (a) or (b), the appropriate Federal finan- 17 cial supervisory agency shall— 18 ‘‘(A) consider public comments received by 19 the appropriate Federal financial supervisory 20 agency regarding the record of the institution in 21 meeting the credit or other financial needs of 22 its entire community, including low- and mod- 23 erate-income communities; and 24 ‘‘(B) require— 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00060 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 61 •S 1368 IS ‘‘(i) an improvement plan for an insti- 1 tution that receives a rating of ‘low satis- 2 factory’ or lower on the written evaluation 3 of the institution, or such a rating in any 4 individual assessment area; and 5 ‘‘(ii) the improvement plan described 6 in clause (i) to result in the reasonable 7 likelihood that the institution will obtain a 8 rating of at least ‘high satisfactory’ in 9 meeting community credit or other finan- 10 cial needs in the relevant measure on the 11 next examination. 12 ‘‘(2) IMPROVEMENT PLAN.— 13 ‘‘(A) IN GENERAL.—A regulated financial 14 institution that is required to submit an im- 15 provement plan required under paragraph 16 (1)(B) shall submit the plan in writing to the 17 appropriate Federal financial supervisory agen- 18 cy not later than 90 days after receiving notice 19 that the regulated financial institution is re- 20 quired to submit the plan. 21 ‘‘(B) PUBLIC COMMENT.—Upon receipt of 22 an improvement plan of a regulated financial 23 institution required under paragraph (1)(B), 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00061 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 62 •S 1368 IS the appropriate Federal financial supervisory 1 agency shall— 2 ‘‘(i) make the plan available to the 3 public for review and comment for a period 4 of not less than 60 days; and 5 ‘‘(ii) require the regulated financial 6 institution to revise, as appropriate, the 7 improvement plan in response to the public 8 comments received under the public review 9 and comment period described in clause (i) 10 and submit the plan to the appropriate 11 Federal financial supervisory agency not 12 later than 60 days after the end of that pe- 13 riod. 14 ‘‘(3) EXAMINATION OF CERTAIN REGULATED 15 FINANCIAL INSTITUTIONS.—In the case of a regu- 16 lated financial institution whose lending or other 17 business is not clustered in geographical areas and 18 is thinly dispersed across the country, the institution 19 shall— 20 ‘‘(A) be evaluated under subsection (a) or 21 (b), as applicable— 22 ‘‘(i) by considering the effectiveness of 23 the institution in serving customers or bor- 24 rowers, with a special emphasis on low- 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00062 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 63 •S 1368 IS and moderate-income individuals across the 1 country regardless of where the individuals 2 reside; and 3 ‘‘(ii) based on objective thresholds de- 4 veloped by the appropriate Federal finan- 5 cial supervisory agencies to clarify when 6 lending or other business is dispersed 7 across the country and not clustered in 8 distinct geographical areas, which may in- 9 clude low levels of lending or other finan- 10 cial products across States or other areas; 11 and 12 ‘‘(B) meet the needs of other distressed or 13 underserved communities. 14 ‘‘(d) CONSIDERATION.—Remediation of consumers 15 pursuant to an order by an court or administrative body 16 or a settlement with a government agency or a private 17 party may not be considered in an assessment conducted 18 under subsection (a)(2) or (b)(2). 19 ‘‘(e) RULE OF CONSTRUCTION.—An evaluation of a 20 bank holding company under this section shall incorporate 21 evaluations of subsidiary regulated financial institutions 22 made by the appropriate Federal financial supervisory 23 agency of each subsidiary, if applicable.’’; 24 (C) in subsection (f), as so redesignated— 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00063 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 64 •S 1368 IS (i) by striking paragraph (2); 1 (ii) by redesignating paragraph (3) as 2 paragraph (2); and 3 (iii) in paragraph (2), as so redesig- 4 nated, by striking subparagraph (C); and 5 (D) in subsection (g), as so redesignated, 6 by striking ‘‘subsection (a)’’ and inserting ‘‘sub- 7 sections (a) and (b)’’; 8 (3) in section 807 (12 U.S.C. 2906)— 9 (A) in subsection (a)— 10 (i) by striking ‘‘an insured depository 11 institution’’ and inserting ‘‘a regulated fi- 12 nancial institution’’; and 13 (ii) by inserting ‘‘or financial’’ after 14 ‘‘credit’’; 15 (B) in subsection (b)— 16 (i) in paragraph (1)— 17 (I) in subparagraph (A)— 18 (aa) in clause (ii), by strik- 19 ing ‘‘and’’ at the end; 20 (bb) by redesignating clause 21 (iii) as clause (iv); and 22 (cc) by inserting after clause 23 (ii) the following: 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00064 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 65 •S 1368 IS ‘‘(iii) disclose whether the institution en- 1 gaged in acts or practices that the Bureau of 2 Consumer Financial Protection has determined, 3 and has publicly disclosed, violate the enumer- 4 ated consumer laws; and’’; and 5 (II) by striking subparagraph (B) 6 and inserting the following: 7 ‘‘(B) METROPOLITAN AREA DISTINCTIONS.— 8 The information required under clauses (i) and (ii) 9 of subparagraph (A) shall be presented separately 10 for each assessment area. 11 ‘‘(C) TREATMENT WITH RESPECT TO VIOLA- 12 TIONS OF ENUMERATED CONSUMER LAWS.—If a 13 regulated financial institution has engaged in acts or 14 practices that the appropriate Federal financial su- 15 pervisory agency has determined to be unfair, decep- 16 tive, or abusive or acts or practices that violate enu- 17 merated consumer laws intended to ensure the fair, 18 equitable, and nondiscriminatory access to credit for 19 individuals and communities that are enforced by 20 the Bureau of Consumer Financial Protection or 21 other Federal or State agencies, the written evalua- 22 tion shall be negatively influenced in a manner com- 23 mensurate with the extent of the harm suffered by 24 those individuals and communities.’’; 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00065 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 66 •S 1368 IS (ii) in paragraph (2)— 1 (I) by striking subparagraphs 2 (A), (B), (C), and (D) and inserting 3 the following: 4 ‘‘(A) ‘Outstanding record of meeting com- 5 munity credit or other financial needs’. 6 ‘‘(B) ‘High Satisfactory record of meeting 7 community credit or other financial needs’. 8 ‘‘(C) ‘Low Satisfactory record of meeting 9 community credit or other financial needs’. 10 ‘‘(D) ‘Needs to improve record of meeting 11 community credit or other financial needs’. 12 ‘‘(E) ‘Substantial noncompliance in meet- 13 ing community credit or other financial 14 needs’.’’; and 15 (iii) by inserting after the flush text 16 following paragraph (2) the following: 17 ‘‘(3) ADDITIONAL AUTHORITY.—The appro- 18 priate Federal financial supervisory agencies may— 19 ‘‘(A) alter the ratings under this sub- 20 section to change or include additional ratings; 21 and 22 ‘‘(B) develop an accompanying point sys- 23 tem that includes ranges for each rating cat- 24 egory under paragraph (2).’’; 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00066 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 67 •S 1368 IS (C) by redesignating subsection (e) as sub- 1 section (f); and 2 (D) by inserting after subsection (d) the 3 following: 4 ‘‘(e) APPEALS OF RATING.—If a regulated financial 5 institution appeals the assigned rating under this section, 6 the appropriate Federal financial supervisory agency shall 7 post a public notice of the appeal on the part of the 8 website of the appropriate Federal financial supervisory 9 agency that contains information on this title.’’; 10 (4) in section 806 (12 U.S.C. 2905)— 11 (A) by striking ‘‘Regulations’’ and insert- 12 ing the following: 13 ‘‘(a) IN GENERAL.—Regulations’’; 14 (B) in subsection (a), as so designated, by 15 striking ‘‘companies,,’’ and inserting ‘‘compa- 16 nies,’’; and 17 (C) by adding at the end the following: 18 ‘‘(b) PERIODIC REVIEW.—Not later than 5 years 19 after the date of enactment of this subsection and every 20 5 years thereafter, the appropriate Federal financial su- 21 pervisory agencies shall— 22 ‘‘(1) review the regulations promulgated to 23 carry out this title; and 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00067 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 68 •S 1368 IS ‘‘(2) report to Congress any recommendations 1 for updates to the regulations and this title, which 2 may include consideration of— 3 ‘‘(A) data collection under this title; 4 ‘‘(B) the rigor of evaluations under this 5 title; 6 ‘‘(C) the assessment area coverage of loans 7 and deposits; and 8 ‘‘(D) the extent to which the provisions of 9 this title are reducing disparities in access to 10 credit and capital by income and race.’’; and 11 (5) by adding at the end the following: 12 ‘‘SEC. 810. DATA COLLECTION AND REPORTING REQUIRE- 13 MENTS. 14 ‘‘(a) DATA COLLECTION.— 15 ‘‘(1) CONSUMER LOANS.— 16 ‘‘(A) IN GENERAL.—Each regulated finan- 17 cial institution shall collect and maintain in ma- 18 chine readable form, as prescribed by the ap- 19 propriate Federal financial supervisory agency, 20 data for consumer loans originated or pur- 21 chased by the regulated financial institution, in- 22 cluding motor vehicle loans, credit cards, lines 23 of credit, and other secured or unsecured loans. 24 The regulated financial institution shall main- 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00068 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 69 •S 1368 IS tain data separately for each category of con- 1 sumer loan, including the following for each 2 loan: 3 ‘‘(i) A unique number or alpha-nu- 4 meric symbol that can be used to identify 5 the relevant loan. 6 ‘‘(ii) The loan amount at origination 7 or purchase. 8 ‘‘(iii) The loan location. 9 ‘‘(iv) The gross annual income of the 10 borrower that the regulated financial insti- 11 tution considered in making its credit deci- 12 sion. 13 ‘‘(B) EXEMPTIONS.—The appropriate Fed- 14 eral financial supervisory agencies may exempt 15 classes of regulated financial institutions from 16 the requirements under subparagraph (A) due 17 to low levels of consumer lending or other fac- 18 tors. 19 ‘‘(2) COMMUNITY DEVELOPMENT LOANS AND 20 INVESTMENTS.— 21 ‘‘(A) COLLECTION AND MAINTENANCE OF 22 DATA.—Each regulated financial institution 23 shall collect and maintain in machine readable 24 form, as prescribed by the appropriate Federal 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00069 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 70 •S 1368 IS financial supervisory agency, data on the cat- 1 egories of community development lending and 2 investments, including data regarding financing 3 affordable housing, small business development, 4 and economic development. 5 ‘‘(B) PUBLIC DISSEMINATION.—Each reg- 6 ulated financial institution shall— 7 ‘‘(i) publicly disseminate the data de- 8 scribed in subparagraph (A) on a county 9 level and for categories of census tracts in- 10 cluding low- and moderate-income census 11 tracts or other distressed and underserved 12 census tracts; and 13 ‘‘(ii) consider disseminating the data 14 described in subparagraph (A) by indi- 15 vidual census tracts in addition to the cat- 16 egories described in clause (i). 17 ‘‘(3) ASSESSMENT AREA DATA.— 18 ‘‘(A) IN GENERAL.—Each regulated finan- 19 cial institution shall collect and report to the 20 appropriate Federal financial supervisory agen- 21 cy by March 1 of each year a list for each as- 22 sessment area showing the geographies within 23 the area. 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00070 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 71 •S 1368 IS ‘‘(B) PUBLICATION.—The appropriate 1 Federal financial supervisory agencies shall 2 make the list of assessment areas reported by 3 each regulated financial institution under sub- 4 paragraph (A) publicly available on the part of 5 the website of the appropriate Federal financial 6 supervisory agency that contains information on 7 this title. 8 ‘‘(4) DEPOSITS.—The appropriate Federal fi- 9 nancial supervisory agencies shall— 10 ‘‘(A) collect data from regulated financial 11 institutions that reflects— 12 ‘‘(i) the number of customers of those 13 institutions that reside in categories of 14 census tracts including low- and moderate- 15 income census tracts or other distressed 16 and underserved census tracts and the dol- 17 lar amount of deposits of those customers; 18 and 19 ‘‘(ii) the number of small businesses 20 that are located in the census tract cat- 21 egories described in clause (i); and 22 ‘‘(B) consider the dissemination of the de- 23 posit data collected under subparagraph (A) by 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00071 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 72 •S 1368 IS individual census tracts in addition to the cat- 1 egories described in that subparagraph. 2 ‘‘(b) AGGREGATE DISCLOSURE STATEMENTS.— 3 ‘‘(1) IN GENERAL.—Each appropriate Federal 4 financial supervisory agency shall prepare annually, 5 for each assessment area, a disclosure statement of 6 home, small business, small farm, and consumer 7 lending for each regulated financial institution sub- 8 ject to reporting under this section and an aggre- 9 gated statement for all reporting institutions com- 10 bined, which shall indicate, for each assessment 11 area, the number and amount of all small business, 12 small farm, and consumer loans originated or pur- 13 chased sorted by income level of borrowers, race and 14 ethnicity of borrowers, revenue size of small business 15 and farms, and categories of census tracts. 16 ‘‘(2) DEPOSITS AND COMMUNITY DEVELOP- 17 MENT LOANS AND INVESTMENTS.—An appropriate 18 Federal financial supervisory agency shall include 19 data on deposits and community development loans 20 and investments in the disclosure statements pre- 21 pared under paragraph (1). 22 ‘‘(3) ADJUSTED FORM.—An appropriate Fed- 23 eral financial supervisory agency may adjust the 24 form of the disclosure statement prepared under 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00072 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 73 •S 1368 IS paragraph (1) if necessary, because of special cir- 1 cumstances, to protect the privacy of a borrower or 2 the competitive position of a regulated financial in- 3 stitution. 4 ‘‘(c) CENTRAL DATA DEPOSITORIES.—The Federal 5 Financial Institutions Examination Council, in consulta- 6 tion with the appropriate Federal financial supervisory 7 agencies, shall implement a system— 8 ‘‘(1) to allow the public to access online and in 9 a searchable format the data maintained under 10 paragraphs (1) through (4) of subsection (a); and 11 ‘‘(2) that ensures that personally identifiable fi- 12 nancial information is not disclosed to public. 13 ‘‘(d) LIMITATION.—An appropriate Federal financial 14 supervisory agency may not use the authorities of the ap- 15 propriate Federal financial supervisory agency under this 16 section to obtain a record from a regulated financial insti- 17 tution for the purpose of gathering or analyzing the per- 18 sonally identifiable financial information of a consumer.’’. 19 (c) AMENDMENT TO THE BANK HOLDING COMPANY 20 ACT OF 1956.—Section 4(k)(6) of the Bank Holding 21 Company Act of 1956 (12 U.S.C. 1843(k)(6)) is amended 22 to read as follows: 23 ‘‘(6) NOTICE AND OPPORTUNITY FOR COMMENT 24 REQUIRED.— 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00073 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 74 •S 1368 IS ‘‘(A) IN GENERAL.—No financial holding 1 company shall directly or indirectly acquire, and 2 no company that becomes a financial holding 3 company shall directly or indirectly acquire con- 4 trol of, any company in the United States, in- 5 cluding through merger, consolidation, or other 6 type of business combination, that is engaged in 7 activities permitted under this subsection or 8 subsection (n) or (o), unless— 9 ‘‘(i) the holding company has provided 10 notice to the Board, not later than 60 days 11 prior to the proposed acquisition or prior 12 to becoming a financial holding company, 13 and during that time period, or such 14 longer time period not exceeding an addi- 15 tional 60 days, as established by the 16 Board; 17 ‘‘(ii) the Board has provided public 18 notice and opportunity for comment for 19 not less than 60 days; and 20 ‘‘(iii) the Board has not issued a no- 21 tice disapproving the proposed acquisition 22 or retention. 23 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00074 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 75 •S 1368 IS ‘‘(B) FACTORS FOR CONSIDERATION.—In 1 reviewing any prior notice filed under this para- 2 graph, the Board shall— 3 ‘‘(i) consider the overall rating of the 4 financial holding company under the Com- 5 munity Reinvestment Act of 1977 (12 6 U.S.C. 2901 et seq.) and any improvement 7 plans submitted pursuant to that Act; 8 ‘‘(ii) provide opportunity for public 9 comment for a period of not less than 60 10 days; 11 ‘‘(iii) consider changes in the commu- 12 nity reinvestment performance of the fi- 13 nancial holding company since the last rat- 14 ing under the Community Reinvestment 15 Act of 1977 (12 U.S.C. 2901 et seq.) by 16 the appropriate Federal financial super- 17 visory agency; and 18 ‘‘(iv) require— 19 ‘‘(I) a demonstration that grant- 20 ing the application for a deposit facil- 21 ity is in the public interest, which 22 shall include submission to the appro- 23 priate Federal financial supervisory 24 agency of a community benefits plan 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00075 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 76 •S 1368 IS commensurate with the ability of the 1 institution to carry out that plan; 2 ‘‘(II) that the institution consult 3 with community-based organizations 4 and other community stakeholders in 5 developing the community benefits 6 plan; and 7 ‘‘(III) a public hearing for any 8 bank that has received a ‘need-to-im- 9 prove’ or ‘low satisfactory’ grade in 10 any assessment area during the last 11 examination under the Community 12 Reinvestment Act of 1977 (12 U.S.C. 13 2901 et seq.).’’. 14 (d) TECHNICAL AND CONFORMING AMENDMENT.— 15 Section 10(c)(2)(H)(i) of the Home Owners’ Loan Act (12 16 U.S.C. 1467a(c)(2)(H)(i)) is amended by striking ‘‘section 17 804(c) of the Community Reinvestment Act of 1977 (12 18 U.S.C. 2903(c))’’ and inserting ‘‘section 804(f) of the 19 Community Reinvestment Act of 1977 (12 U.S.C. 20 2903(f))’’. 21 SEC. 204. AMENDMENTS RELATING TO CREDIT UNION 22 SERVICE TO UNDERSERVED AREAS. 23 (a) IN GENERAL.—The Federal Credit Union Act (12 24 U.S.C. 1751 et seq.) is amended— 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00076 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 77 •S 1368 IS (1) in section 101 (12 U.S.C. 1752)— 1 (A) in paragraph (8), by striking ‘‘and’’ at 2 the end; 3 (B) in paragraph (9), by striking the pe- 4 riod at the end and inserting ‘‘; and’’; and 5 (C) by adding at the end the following: 6 ‘‘(10) the term ‘underserved area’— 7 ‘‘(A) means a local community, neighbor- 8 hood, or rural district that— 9 ‘‘(i) is an investment area, as defined 10 in section 103 of the Community Develop- 11 ment Banking and Financial Institutions 12 Act of 1994 (12 U.S.C. 4702), that meets 13 such additional requirements that the 14 Board may impose; and 15 ‘‘(ii) is underserved, based on data of 16 the Board and the Federal banking agen- 17 cies (as defined in section 3 of the Federal 18 Deposit Insurance Act (12 U.S.C. 1813)), 19 by other depository institutions (as defined 20 in section 19(b)(1)(A) of the Federal Re- 21 serve Act (12 U.S.C. 461(b)(1)(A)); and 22 ‘‘(B) notwithstanding subparagraph (A), 23 includes, with respect to any Federal credit 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00077 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 78 •S 1368 IS union, any geographic area within which the 1 credit union— 2 ‘‘(i) has received approval to provide 3 service before the date of enactment of this 4 paragraph from the Administration; and 5 ‘‘(ii) has established a service facility 6 before that date of enactment.’’; 7 (2) in section 106 (12 U.S.C. 1756), by adding 8 at the end the following: ‘‘The Board shall monitor 9 adherence by a Federal credit union to a significant 10 unmet needs plan submitted under section 109(h) by 11 that Federal credit union that describes how the 12 Federal credit union will serve the deposit and other 13 financial needs of the community.’’; and 14 (3) in section 109 (12 U.S.C. 1759)— 15 (A) in subsection (c), by amending para- 16 graph (2) to read as follows: 17 ‘‘(2) EXCEPTION FOR UNDERSERVED AREAS.— 18 ‘‘(A) IN GENERAL.—Notwithstanding sub- 19 section (b), the Board may approve an applica- 20 tion by a Federal credit union to allow the 21 membership of the credit union to include any 22 person or organization whose principal resi- 23 dence or place of business is located within a 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00078 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 79 •S 1368 IS local community, neighborhood, or rural district 1 if— 2 ‘‘(i) the Board determines— 3 ‘‘(I) at any time after August 7, 4 1998, that the local community, 5 neighborhood, or rural district taken 6 into account for purposes of this para- 7 graph is an underserved area; and 8 ‘‘(II) at the time of the approval, 9 that the credit union is well capital- 10 ized or adequately capitalized (as de- 11 fined in section 216(c)(1)); and 12 ‘‘(ii) before the end of the 24-month 13 period beginning on the date of the ap- 14 proval, the credit union has established 15 and maintains an ongoing method to pro- 16 vide services in the local community, neigh- 17 borhood, or rural district. 18 ‘‘(B) TERMINATION OF APPROVAL.— 19 ‘‘(i) IN GENERAL.—Any failure of a 20 Federal credit union to meet the require- 21 ment of clause (ii) of subparagraph (A) by 22 the end of the 24-month period referred to 23 in that clause shall constitute a termi- 24 nation, as a matter of law, of any approval 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00079 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 80 •S 1368 IS of an application under this paragraph by 1 the Board with respect to the membership 2 of the credit union. 3 ‘‘(ii) SIGNIFICANT UNMET NEEDS 4 PLAN.—The Board may terminate the 5 membership of a Federal credit union upon 6 a finding that the credit union is not meet- 7 ing the terms of the significant unmet 8 needs plan of the credit union submitted 9 under subsection (h)(1). 10 ‘‘(C) CREDIT UNION REPORTING REQUIRE- 11 MENT.—Any Federal credit union that has an 12 application approved under this paragraph 13 shall, as part of the ordinary course of the ex- 14 amination cycle and supervision process, submit 15 a report to the Administration that includes— 16 ‘‘(i) the number of members of the 17 credit union who are members by reason of 18 the application; 19 ‘‘(ii) the number of offices or facilities 20 maintained by the credit union in the local 21 community, neighborhood, or rural district 22 taken into account by the Board in approv- 23 ing the application; and 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00080 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 81 •S 1368 IS ‘‘(iii) evidence, as specified by the 1 Board by regulation, demonstrating com- 2 pliance by the credit union with the signifi- 3 cant unmet needs plan submitted by the 4 credit union under subsection (h)(1), as 5 specified by the Administration. 6 ‘‘(D) PUBLICATION BY ADMINISTRA- 7 TION.—The Administration shall publish an an- 8 nual report containing— 9 ‘‘(i) a list of all the applications ap- 10 proved under this paragraph before the 11 date on which the report is published; 12 ‘‘(ii) the number and locations of the 13 underserved areas taken into account in 14 approving those applications; 15 ‘‘(iii) the total number of members of 16 credit unions who are members by reason 17 of the approval of those applications; and 18 ‘‘(iv) evidence demonstrating compli- 19 ance by credit unions with significant 20 unmet needs plans submitted by the credit 21 unions under subsection (h)(1), as speci- 22 fied by the Administration.’’; 23 (B) in subsection (e)(2), by inserting ‘‘sub- 24 section (c)(2) and’’ after ‘‘provided in’’; and 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00081 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 82 •S 1368 IS (C) by adding at the end the following: 1 ‘‘(h) ADDITIONAL REQUIREMENTS FOR COMMUNITY 2 CREDIT UNIONS.— 3 ‘‘(1) IN GENERAL.—A Federal credit union de- 4 siring membership as a credit union described in 5 subsection (b)(3) shall submit to the Board a busi- 6 ness plan, which shall include, among other issues, 7 a marketing plan that identifies— 8 ‘‘(A) the unique needs of the various demo- 9 graphic groups in the proposed community; and 10 ‘‘(B) how the credit union will market to 11 each group, particularly underserved groups, to 12 address those needs. 13 ‘‘(2) PUBLIC COMMENT AND HEARING.—With 14 respect to a Federal credit union desiring member- 15 ship as a credit union described in subsection (b)(3) 16 for an area with multiple political jurisdictions with 17 a population of not less than 2,500,000, the Admin- 18 istration shall— 19 ‘‘(A) publish a notice in the Federal Reg- 20 ister seeking comment from interested parties 21 about the proposed community; and 22 ‘‘(B) conduct a public hearing regarding 23 the application of the Federal credit union.’’. 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00082 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 83 •S 1368 IS (b) REGULATIONS.—Not later than 1 year after the 1 date of enactment of this Act, the National Credit Union 2 Administration Board shall issue final regulations to im- 3 plement the amendments made by subsection (a). 4 SEC. 205. ELIGIBILITY OF CERTAIN DIRECT DESCENDANTS 5 OF CERTAIN VETERANS FOR HOUSING LOANS 6 GUARANTEED BY THE SECRETARY OF VET- 7 ERANS AFFAIRS. 8 (a) EXPANSION OF DEFINITION OF VETERAN FOR 9 PURPOSES OF HOUSING LOAN BENEFITS.—Section 10 3701(b) of title 38, United States Code, is amended by 11 adding at the end the following new paragraph: 12 ‘‘(8)(A) The term ‘veteran’ also includes, for 13 purposes of home loans, any direct descendant of a 14 veteran described in subparagraph (B) if the de- 15 scendant is living on the date of the enactment of 16 the American Housing and Economic Mobility Act of 17 2021. 18 ‘‘(B) A veteran described in this clause is a vet- 19 eran who— 20 ‘‘(i) served on active duty at any time dur- 21 ing the period between June 22, 1944, and 22 April 11, 1968; 23 ‘‘(ii) is deceased; and 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00083 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 84 •S 1368 IS ‘‘(iii) did not receive a housing loan benefit 1 under this chapter during his or her lifetime. 2 ‘‘(C) In this paragraph, the term ‘direct de- 3 scendant’ includes a legally adopted descendant.’’. 4 (b) EXPANSION OF ELIGIBILITY.—Section 5 3702(a)(2) of such title is amended by adding at the end 6 the following new subparagraph: 7 ‘‘(H) Each direct descendant described in sec- 8 tion 3701(b)(8) of this title.’’. 9 (c) EFFECTIVE DATE.—The amendments made by 10 this section shall take effect on the date that is one year 11 after the date of the enactment of this Act. 12 (d) REGULATIONS.—Not later than 180 days after 13 the date of the enactment of this Act, the Secretary of 14 Veterans Affairs shall prescribe regulations to carry out 15 the amendments made by this section. 16 TITLE III—REMOVING BARRIERS 17 THAT ISOLATE COMMUNITIES 18 SEC. 301. EXPANDING RIGHTS UNDER THE FAIR HOUSING 19 ACT. 20 (a) PURPOSES.—The purposes of the amendments 21 made by this section are— 22 (1) to expand, as well as clarify, confirm, and 23 create greater consistency in, the protections against 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00084 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 85 •S 1368 IS discrimination on the basis of all covered character- 1 istics; and 2 (2) to provide guidance and notice to individ- 3 uals, organizations, corporations, and agencies re- 4 garding their obligations under Federal law. 5 (b) AMENDMENTS TO THE FAIR HOUSING ACT.— 6 The Fair Housing Act (42 U.S.C. 3601 et seq.) is amend- 7 ed— 8 (1) in section 802 (42 U.S.C. 3602), by adding 9 at the end the following: 10 ‘‘(p) ‘Gender identity’ means the gender-related iden- 11 tity, appearance, or mannerisms or other gender-related 12 characteristics of an individual, regardless of the individ- 13 ual’s designated sex at birth. 14 ‘‘(q) ‘Marital status’ has the meaning given the term 15 in section 202.2 of title 12, Code of Federal Regulations, 16 or any successor regulation. 17 ‘‘(r) ‘Sexual orientation’ means homosexuality, het- 18 erosexuality, or bisexuality. 19 ‘‘(s) ‘Source of income’ includes income for which 20 there is a reasonable expectation that the income will con- 21 tinue from— 22 ‘‘(1) a profession, occupation, or job; 23 ‘‘(2) any government or private assistance, 24 grant, loan, or rental assistance program, including 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00085 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 86 •S 1368 IS vouchers issued under the United States Housing 1 Act of 1937 (42 U.S.C. 1437 et seq.); 2 ‘‘(3) a gift, an inheritance, a pension, an annu- 3 ity, alimony, child support, or other consideration or 4 benefit; or 5 ‘‘(4) the sale or pledge of property or an inter- 6 est in property. 7 ‘‘(t) ‘Veteran status’ means— 8 ‘‘(1) a member of the uniformed services, as de- 9 fined in section 101 of title 10, United States Code; 10 or 11 ‘‘(2) a veteran, as defined in section 101 of title 12 38, United States Code.’’; 13 (2) in section 804 (42 U.S.C. 3604)— 14 (A) by inserting ‘‘actual or perceived’’ be- 15 fore ‘‘race, color’’ each place that term appears; 16 (B) by striking ‘‘sex,’’ each place that term 17 appears and inserting ‘‘sex (including sexual 18 orientation and gender identity), marital status, 19 source of income, veteran status,’’; and 20 (C) in subsection (c)— 21 (i) by inserting ‘‘(1)’’ before ‘‘To 22 make’’; and 23 (ii) by adding at the end the fol- 24 lowing: 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00086 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 87 •S 1368 IS ‘‘(2) Nothing in this title shall be construed to— 1 ‘‘(A) prohibit a lender from implementing a 2 loan program for veterans or based upon veteran 3 status; or 4 ‘‘(B) prohibit an entity from providing housing 5 assistance under— 6 ‘‘(i) section 8(o)(19) of the United States 7 Housing Act of 1937 (42 U.S.C. 1437f(o)(19)); 8 ‘‘(ii) the Homeless Providers Grant and 9 Per Diem program of the Department of Vet- 10 erans Affairs; or 11 ‘‘(iii) any other Federal housing assistance 12 program for veterans or based on veteran sta- 13 tus.’’; 14 (3) in section 805 (42 U.S.C. 3605)— 15 (A) by inserting ‘‘actual or perceived’’ be- 16 fore ‘‘race, color’’ each place that term appears; 17 and 18 (B) by striking ‘‘sex,’’ each place that term 19 appears and inserting ‘‘sex (including sexual 20 orientation and gender identity), marital status, 21 source of income, veteran status,’’; 22 (4) in section 806 (42 U.S.C. 3606)— 23 (A) by inserting ‘‘actual or perceived’’ be- 24 fore ‘‘race, color’’; and 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00087 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 88 •S 1368 IS (B) by striking ‘‘sex,’’ each place that term 1 appears and inserting ‘‘sex (including sexual 2 orientation and gender identity), marital status, 3 source of income, veteran status,’’; and 4 (5) in section 808(e)(6) (42 U.S.C. 3608(e)(6)), 5 by striking ‘‘sex,’’ and inserting ‘‘sex (including sex- 6 ual orientation and gender identity), marital status, 7 source of income, veteran status,’’. 8 (c) PREVENTION OF INTIMIDATION.—Section 901 of 9 the Civil Rights Act of 1968 (42 U.S.C. 3631) is amend- 10 ed— 11 (1) by inserting ‘‘actual or perceived’’ before 12 ‘‘race, color’’ each place that term appears; and 13 (2) by striking ‘‘sex,’’ each place that term ap- 14 pears and inserting ‘‘sex (including sexual orienta- 15 tion (as such term is defined in section 802 of this 16 Act) and gender identity (as defined in section 802 17 of this Act)), marital status (as defined in section 18 802), source of income (as defined in section 802), 19 veteran status (as defined in section 802),’’. 20 (d) RULE OF CONSTRUCTION.—Nothing in the 21 amendments made by this section shall be construed to 22 mean that a particular class of individuals was not pro- 23 tected against discrimination under Federal law as in ef- 24 fect on the day before the date of enactment of this Act. 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00088 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 89 •S 1368 IS SEC. 302. IMPROVING OUTCOMES IN HOUSING ASSISTANCE 1 PROGRAMS. 2 (a) INDIAN HOUSING ASSISTANCE.—Section 502 of 3 the Native American Housing Assistance and Self-Deter- 4 mination Act of 1996 (25 U.S.C. 4181) is amended by 5 adding at the end the following: 6 ‘‘(c) APPLICABILITY.—Subsections (a) and (b) shall 7 not apply with respect to tenant-based assistance provided 8 under section 8(o) of the United States Housing Act of 9 1937 (42 U.S.C. 1437f(o)).’’. 10 (b) SUPPLEMENTAL ADMINISTRATIVE FEE.—Section 11 8(q)(2)(B) of the United States Housing Act of 1937 (42 12 U.S.C. 1437f(q)(2)(B)) is amended by inserting ‘‘, includ- 13 ing the cost of assisting families with children or families 14 with a member with a disability that move to lower pov- 15 erty, higher opportunity neighborhoods (as determined by 16 the Secretary based on objective, evidence-based criteria)’’ 17 after ‘‘programs’’. 18 (c) REGIONAL PLANNING TO INCREASE ACCESS TO 19 HIGHER OPPORTUNITY AREAS.—Section 8(o) of the 20 United States Housing Act of 1937 (42 U.S.C. 1437f(o)) 21 is amended by adding at the end the following: 22 ‘‘(21) INCREASING ACCESS TO HIGHER OPPOR- 23 TUNITY AREAS.— 24 ‘‘(A) LOCATION ANALYSIS.— 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00089 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 90 •S 1368 IS ‘‘(i) IN GENERAL.—A public housing 1 agency that administers the program 2 under this subsection in a metropolitan 3 area shall— 4 ‘‘(I) analyze the locations where 5 the participants in the program of the 6 public housing agency live; and 7 ‘‘(II) based on the analysis de- 8 scribed in subclause (I), establish poli- 9 cies and practices to reduce disparities 10 and barriers to access to locations 11 throughout the metropolitan area that 12 evidence indicates are more likely to 13 improve outcomes for children or 14 adults. 15 ‘‘(ii) CONSIDERATIONS.—The location 16 analysis required under this subparagraph 17 shall— 18 ‘‘(I) consider separately the loca- 19 tions of families with children, house- 20 holds that include a person with dis- 21 abilities, and other groups protected 22 under the Fair Housing Act (42 23 U.S.C. 3601 et seq.); and 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00090 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 91 •S 1368 IS ‘‘(II) include an analysis of the 1 locations in relation to dwelling units 2 with rents that are potentially afford- 3 able to voucher holders and the likely 4 impact of key neighborhood attributes 5 on their well-being and long-term suc- 6 cess, based on Federal and available 7 local data. 8 ‘‘(iii) MAPPING TOOLS.—The Sec- 9 retary shall— 10 ‘‘(I) provide mapping tools and 11 other information necessary for a pub- 12 lic housing agency to perform the lo- 13 cation analysis under this subpara- 14 graph using the demographic data on 15 participating families submitted to the 16 Secretary under part 908 of title 24, 17 Code of Federal Regulations, or any 18 successor regulation; 19 ‘‘(II) publish a notice in the Fed- 20 eral Register, subject to public com- 21 ment, that specifies the data sources 22 and definitions that will be incor- 23 porated in each mapping tool required 24 under subclause (I); and 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00091 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 92 •S 1368 IS ‘‘(III) update the notice required 1 under subclause (II) as needed based 2 on changes in the availability of rel- 3 evant data or evidence of neighbor- 4 hood attributes likely to impact the 5 well-being and long-term success of 6 participants in the program under this 7 subsection. 8 ‘‘(iv) FREQUENCY AND AVAIL- 9 ABILITY.—The location analysis required 10 under this subparagraph shall— 11 ‘‘(I) be performed by each public 12 housing agency described in clause (i) 13 not less frequently than once every 5 14 years; 15 ‘‘(II) be performed by all public 16 housing agencies in a metropolitan 17 area in the same year, as determined 18 by the Secretary; and 19 ‘‘(III) be made available to the 20 public in a manner that protects the 21 privacy of program participants. 22 ‘‘(B) REGIONAL POLICIES TO INCREASE 23 ACCESS TO HIGHER OPPORTUNITY NEIGHBOR- 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00092 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 93 •S 1368 IS HOODS.—Each public housing agency described 1 in subparagraph (A)(i) shall— 2 ‘‘(i) consult with other such public 3 housing agencies in the same metropolitan 4 area, or smaller regional area approved by 5 the Secretary, about the possible barriers 6 and other reasons for the disparities iden- 7 tified in the location analysis required 8 under subparagraph (A); 9 ‘‘(ii) identify policies or practices that 10 those public housing agencies could adopt 11 individually or in collaboration, or other 12 strategies that recipients of grants or other 13 funding from the Secretary could adopt, to 14 reduce the barriers and disparities and in- 15 crease the share of families with children 16 and other demographic groups using 17 vouchers in higher-opportunity neighbor- 18 hoods in the metropolitan area or region; 19 and 20 ‘‘(iii) include in the administrative 21 plan required under section 982.54 of title 22 24, Code of Federal Regulations, or any 23 successor regulation, the policies that the 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00093 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 94 •S 1368 IS public housing agency has adopted under 1 this paragraph. 2 ‘‘(C) ASSESSMENT.—The Secretary shall 3 include public housing agency performance in 4 achieving the goal described in subparagraph 5 (A)(i)(II) in the periodic assessment of agency 6 performance in managing the program under 7 this subsection required under part 985 of title 8 24, Code of Federal Regulations, or any suc- 9 cessor regulation.’’. 10 (d) REQUIRED REGULATORY CHANGES TO PUBLIC 11 HOUSING AGENCY CONSORTIA.— 12 (1) DEFINITIONS.—In this subsection: 13 (A) MOVING TO WORK DEMONSTRATION 14 PROGRAM.—The term ‘‘Moving to Work dem- 15 onstration program’’ means the program estab- 16 lished under section 204 of the Departments of 17 Veterans Affairs and Housing and Urban De- 18 velopment, and Independent Agencies Appro- 19 priations Act, 1996 (Public Law 104–134; 110 20 Stat. 1321–281). 21 (B) PUBLIC HOUSING AGENCY.—The term 22 ‘‘public housing agency’’ has the meaning given 23 the term in section 3(b)(6) of the United States 24 Housing Act of 1937 (42 U.S.C. 1437a(b)(6)). 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00094 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 95 •S 1368 IS (2) REQUIREMENT.—Not later than 1 year 1 after the date of enactment of this Act, the Sec- 2 retary of Housing and Urban Development shall es- 3 tablish policies and procedures that— 4 (A) enable public housing agencies that 5 elect to operate in consortia under section 13(a) 6 of the United States Housing Act of 1937 (42 7 U.S.C. 1437k(a)), excluding public housing 8 agencies participating in the Moving to Work 9 demonstration program— 10 (i) to consolidate their funding con- 11 tracts for assistance provided under section 12 8(o) of such Act (42 U.S.C. 1437f(o)) into 13 a single contract; 14 (ii) to consolidate their funding con- 15 tracts for assistance provided under sub- 16 sections (d) and (e) of section 9 of such 17 Act (42 U.S.C. 1437g); or 18 (iii) to exercise the consolidation op- 19 tions under each of clauses (i) and (ii); and 20 (B) enable public housing agencies to form 21 partial consortia under such section 13(a) (42 22 U.S.C. 1437k(a)) that consolidate the adminis- 23 tration of certain aspects of their housing pro- 24 grams to increase access to higher-opportunity 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00095 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 96 •S 1368 IS areas or for other purposes, subject to such re- 1 quirements as the Secretary may establish. 2 (3) MOVING TO WORK AGENCIES.—Any flexi- 3 bility or waiver applicable to the Moving to Work 4 demonstration program shall not apply to any activi- 5 ties or funds administered through a partial consor- 6 tium formed under paragraph (2)(B) by 1 or more 7 public housing agencies participating in the Moving 8 to Work demonstration program. 9 TITLE IV—ESTATE TAX REFORM 10 SEC. 401. AMENDMENT TO INTERNAL REVENUE CODE OF 11 1986. 12 Except as otherwise expressly provided, whenever in 13 this title an amendment or repeal is expressed in terms 14 of an amendment to, or repeal of, a section or other provi- 15 sion, the reference shall be considered to be made to a 16 section or other provision of the Internal Revenue Code 17 of 1986. 18 SEC. 402. RATE ADJUSTMENT. 19 (a) INCREASE IN ESTATE TAX RATES.—The table 20 contained in section 2001(c) is amended to read as follows: 21 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. VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00096 Fmt 6652 Sfmt 6211 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 97 •S 1368 IS If the amount with respect to which the tentative tax to be computed is: The tentative tax is: 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.— 1 Paragraph (3) of section 2010(c) is amended to read as 2 follows: 3 ‘‘(3) BASIC EXCLUSION AMOUNT.—For pur- 4 poses of this subsection, the basic exclusion amount 5 is $3,500,000.’’. 6 (c) SURTAX ON BILLION DOLLAR ESTATES.—Section 7 2001 is amended— 8 (1) in subsection (b), by striking ‘‘The tax’’ and 9 inserting ‘‘Subject to subsection (h), the tax’’, and 10 (2) by adding at the end the following new sub- 11 section: 12 ‘‘(h) SURTAX ON BILLION DOLLAR ESTATES.— 13 ‘‘(1) IN GENERAL.—In the case of a taxable es- 14 tate for which the applicable amount is in excess of 15 $1,000,000,000, the tax determined under sub- 16 section (b) shall be increased by an amount equal to 17 10 percent of such applicable amount. 18 ‘‘(2) APPLICABLE AMOUNT.—For purposes of 19 this subsection, the applicable amount shall be equal 20 to the sum of the amounts under subparagraphs (A) 21 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00097 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 98 •S 1368 IS and (B) of paragraph (1) of subsection (b) for the 1 taxable estate.’’. 2 SEC. 403. REQUIRED MINIMUM 10-YEAR TERM, ETC., FOR 3 GRANTOR RETAINED ANNUITY TRUSTS. 4 (a) IN GENERAL.—Subsection (b) of section 2702 is 5 amended— 6 (1) by redesignating paragraphs (1), (2), and 7 (3) as subparagraphs (A), (B), and (C), respectively, 8 and by moving such subparagraphs (as so redesig- 9 nated) 2 ems to the right; 10 (2) by striking ‘‘For purposes of’’ and inserting 11 the following: 12 ‘‘(1) IN GENERAL.—For purposes of’’; 13 (3) by striking ‘‘paragraph (1) or (2)’’ in para- 14 graph (1)(C) (as so redesignated) and inserting 15 ‘‘subparagraph (A) or (B)’’; and 16 (4) by adding at the end the following new 17 paragraph: 18 ‘‘(2) ADDITIONAL REQUIREMENTS WITH RE- 19 SPECT TO GRANTOR RETAINED ANNUITIES.—For 20 purposes of subsection (a), in the case of an interest 21 described in paragraph (1)(A) (determined without 22 regard to this paragraph) which is retained by the 23 transferor, such interest shall be treated as de- 24 scribed in such paragraph only if— 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00098 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 99 •S 1368 IS ‘‘(A) the right to receive the fixed amounts 1 referred to in such paragraph is for a term of 2 not less than 10 years, 3 ‘‘(B) such fixed amounts, when determined 4 on an annual basis, do not decrease relative to 5 any prior year during the first 10 years of the 6 term referred to in subparagraph (A), and 7 ‘‘(C) the remainder interest has a value 8 equal to or greater than 10 percent of the value 9 of the assets transferred to the trust, deter- 10 mined as of the time of the transfer.’’. 11 (b) EFFECTIVE DATE.—The amendments made by 12 this section shall apply to transfers made after the date 13 of the enactment of this Act. 14 SEC. 404. CERTAIN TRANSFER TAX RULES APPLICABLE TO 15 GRANTOR TRUSTS. 16 (a) IN GENERAL.—Subtitle B is amended by adding 17 at the end the following new chapter: 18 ‘‘CHAPTER 16—SPECIAL RULES FOR 19 GRANTOR TRUSTS 20 ‘‘Sec. 2901. Application of transfer taxes. ‘‘SEC. 2901. APPLICATION OF TRANSFER TAXES. 21 ‘‘(a) IN GENERAL.—In the case of any portion of a 22 trust to which this section applies— 23 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00099 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 100 •S 1368 IS ‘‘(1) the value of the gross estate of the de- 1 ceased deemed owner of such portion shall include 2 all assets attributable to that portion at the time of 3 the death of such owner, 4 ‘‘(2) any distribution from such portion to one 5 or more beneficiaries during the life of the deemed 6 owner of such portion shall be treated as a transfer 7 by gift for purposes of chapter 12, and 8 ‘‘(3) if at any time during the life of the 9 deemed owner of such portion, such owner ceases to 10 be treated as the owner of such portion under sub- 11 part E of part 1 of subchapter J of chapter 1, all 12 assets attributable to such portion at such time shall 13 be treated for purposes of chapter 12 as a transfer 14 by gift made by the deemed owner. 15 ‘‘(b) PORTION OF TRUST TO WHICH SECTION AP- 16 PLIES.—This section shall apply to— 17 ‘‘(1) the portion of a trust with respect to 18 which the grantor is the deemed owner, and 19 ‘‘(2) the portion of the trust to which a person 20 who is not the grantor is a deemed owner by reason 21 of the rules of subpart E of part 1 of subchapter J 22 of chapter 1, and such deemed owner engages in a 23 sale, exchange, or comparable transaction with the 24 trust that is disregarded for purposes of subtitle A. 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00100 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 101 •S 1368 IS For purposes of paragraph (2), the portion of the trust 1 described with respect to a transaction is the portion of 2 the trust attributable to the property received by the trust 3 in such transaction, including all retained income there- 4 from, appreciation thereon, and reinvestments thereof, net 5 of the amount of consideration received by the deemed 6 owner in such transaction. 7 ‘‘(c) EXCEPTIONS.—This section shall not apply to— 8 ‘‘(1) any trust that is includible in the gross es- 9 tate of the deemed owner (without regard to sub- 10 section (a)(1)), and 11 ‘‘(2) any other type of trust that the Secretary 12 determines by regulations or other guidance does not 13 have as a significant purpose the avoidance of trans- 14 fer taxes. 15 ‘‘(d) DEEMED OWNER DEFINED.—For purposes of 16 this section, the term ‘deemed owner’ means any person 17 who is treated as the owner of a portion of a trust under 18 subpart E of part 1 of subchapter J of chapter 1. 19 ‘‘(e) REDUCTION FOR TAXABLE GIFTS TO TRUST 20 MADE BY OWNER.—The amount to which subsection (a) 21 applies shall be reduced by the value of any transfer by 22 gift by the deemed owner to the trust previously taken 23 into account by the deemed owner under chapter 12. 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00101 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 102 •S 1368 IS ‘‘(f) LIABILITY FOR PAYMENT OF TAX.—Any tax im- 1 posed pursuant to subsection (a) shall be a liability of the 2 trust.’’. 3 (b) CLERICAL AMENDMENT.—The table of chapters 4 for subtitle B is amended by adding at the end the fol- 5 lowing new item: 6 ‘‘CHAPTER 16. SPECIAL RULES FOR GRANTOR TRUSTS’’. (c) EFFECTIVE DATE.—The amendments made by 7 this section shall apply— 8 (1) to trusts created on or after the date of the 9 enactment of this Act; 10 (2) to any portion of a trust established before 11 the date of the enactment of this Act which is attrib- 12 utable to a contribution made on or after such date; 13 and 14 (3) to any portion of a trust established before 15 the date of the enactment of this Act to which sec- 16 tion 2901(a) of the Internal Revenue Code of 1986 17 (as added by subsection (a)) applies by reason of a 18 transaction described in section 2901(b)(2) of such 19 Code on or after such date. 20 SEC. 405. ELIMINATION OF GENERATION-SKIPPING TRANS- 21 FER TAX EXEMPTION FOR CERTAIN TRUSTS. 22 (a) IN GENERAL.—Section 2642 is amended by add- 23 ing at the end the following new subsection: 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00102 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 103 •S 1368 IS ‘‘(h) ELIMINATION OF GST EXEMPTION FOR CER- 1 TAIN TRUSTS.— 2 ‘‘(1) IN GENERAL.— 3 ‘‘(A) TRANSFERS FROM NON-QUALIFYING 4 TRUSTS.—In the case of any generation-skip- 5 ping transfer made from a trust that is not a 6 qualifying trust, the inclusion ratio with respect 7 to any property transferred in such transfer 8 shall be 1. 9 ‘‘(B) QUALIFYING TRUST.—For purposes 10 of this subsection, the term ‘qualifying trust’ 11 means a trust for which the date of termination 12 of such trust is not greater than 50 years after 13 the date on which such trust is created. 14 ‘‘(2) TRUSTS CREATED BEFORE DATE OF EN- 15 ACTMENT.—In the case of any trust created before 16 the date of the enactment of this subsection, such 17 trust shall be deemed to be a qualifying trust for a 18 period of 50 years after the date of the enactment 19 of this subsection. 20 ‘‘(3) DATE OF CREATION OF CERTAIN DEEMED 21 SEPARATE TRUSTS.—In the case of any portion of a 22 trust which is treated as a separate trust under sec- 23 tion 2654(b)(1), such separate trust shall be treated 24 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00103 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 104 •S 1368 IS as created on the date of the first transfer described 1 in such section with respect to such separate trust. 2 ‘‘(4) DATE OF CREATION OF POUR-OVER 3 TRUSTS.—In the case of any generation-skipping 4 transfer of property which involves the transfer of 5 property from 1 trust to another trust, the date of 6 the creation of the transferee trust shall be treated 7 as being the earlier of— 8 ‘‘(A) the date of the creation of such trans- 9 feree trust, or 10 ‘‘(B) the date of the creation of the trans- 11 feror trust. 12 In the case of multiple transfers to which the pre- 13 ceding sentence applies, the date of the creation of 14 the transferor trust shall be determined under the 15 preceding sentence before the application of the pre- 16 ceding sentence to determine the date of the creation 17 of the transferee trust. 18 ‘‘(5) REGULATIONS.—The Secretary may pre- 19 scribe such regulations or other guidance as may be 20 necessary or appropriate to carry out this sub- 21 section.’’. 22 (b) EFFECTIVE DATE.—The amendments made by 23 this section shall take effect on the date of the enactment 24 of this Act. 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00104 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 105 •S 1368 IS SEC. 406. SIMPLIFYING GIFT TAX EXCLUSION FOR ANNUAL 1 GIFTS. 2 (a) IN GENERAL.—Paragraph (1) of section 2503(b) 3 is amended to read as follows: 4 ‘‘(1) IN GENERAL.— 5 ‘‘(A) LIMIT PER DONEE.—In the case of 6 gifts made to any person by the donor during 7 the calendar year, the first $10,000 of such 8 gifts to such person shall not, for purposes of 9 subsection (a), be included in the total amount 10 of gifts made during such year. 11 ‘‘(B) CUMULATIVE LIMIT PER DONOR.— 12 ‘‘(i) IN GENERAL.—The aggregate 13 amount excluded under subparagraph (A) 14 with respect to all transfers described in 15 clause (ii) made by the donor during the 16 calendar year shall not exceed twice the 17 dollar amount in effect under such sub- 18 paragraph for such calendar year. 19 ‘‘(ii) TRANSFERS SUBJECT TO LIMITA- 20 TION.—The transfers described in this 21 clause are— 22 ‘‘(I) a transfer in trust, 23 ‘‘(II) a transfer of an interest in 24 a passthrough entity, 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00105 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 106 •S 1368 IS ‘‘(III) a transfer of an interest 1 subject to a prohibition on sale, and 2 ‘‘(IV) any other transfer of prop- 3 erty that, without regard to with- 4 drawal, put, or other such rights in 5 the donee, cannot immediately be liq- 6 uidated by the donee.’’. 7 (b) CONFORMING AMENDMENT.—Section 2503 is 8 amended by striking subsection (c). 9 (c) REGULATIONS.—The Secretary of the Treasury, 10 or the Secretary of the Treasury’s delegate, may prescribe 11 such regulations or other guidance as may be necessary 12 or appropriate to carry out the amendments made by this 13 section. 14 (d) EFFECTIVE DATE.—The amendments made by 15 this section shall apply to any calendar year beginning 16 after the date of the enactment of this Act. 17 TITLE V—ACCESSIBILITY 18 REQUIREMENTS 19 SEC. 501. ACCESSIBILITY REQUIREMENTS. 20 In the case of housing that is constructed, altered, 21 or otherwise assisted using amounts made available to the 22 Secretary of Housing and Urban Development under this 23 Act or an amendment made by this Act, sections 8.22 and 24 8.23 of title 24, Code of Federal Regulations (or any suc- 25 VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00106 Fmt 6652 Sfmt 6201 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS 107 •S 1368 IS cessor regulations) shall be applied such that the number 1 of dwelling units required to be accessible under those sec- 2 tions is twice the number that would otherwise be required 3 to be accessible under those sections. 4 Æ VerDate Sep 11 2014 00:27 May 27, 2021 Jkt 019200 PO 00000 Frm 00107 Fmt 6652 Sfmt 6301 E:\BILLS\S1368.IS S1368 pbinns on DSKJLVW7X2PROD with BILLS