Text of US SB 3503 (2018)

II 115TH CONGRESS 2D SESSION S. 3503 To make housing more affordable, and for other purposes. IN THE SENATE OF THE UNITED STATES SEPTEMBER 26, 2018 Ms. WARREN 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 2018’’. 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. TITLE II—REVERSING THE LEGACY OF HOUSING DISCRIMINATION AND GOVERNMENT NEGLIGENCE VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00001 Fmt 6652 Sfmt 6211 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 2 •S 3503 IS Sec. 201. Down payment assistance program for communities formerly seg- regated by law. Sec. 202. Formula grant program for communities that have not recovered from the financial crisis. Sec. 203. Strengthening the Community Reinvestment Act of 1977. TITLE III—REMOVING BARRIERS THAT ISOLATE COMMUNITIES Sec. 301. Expanding rights under the Fair Housing Act. Sec. 302. Improving outcomes in housing assistance programs. TITLE IV—ESTATE TAX REFORM Sec. 401. Amendment to Internal Revenue Code of 1986. Sec. 402. Rate adjustment. Sec. 403. Required minimum 10-year term, etc., for grantor retained annuity trusts. Sec. 404. Certain transfer tax rules applicable to grantor trusts. Sec. 405. Elimination of generation-skipping transfer tax exemption for certain trusts. Sec. 406. Simplifying gift tax exclusion for annual gifts. TITLE I—MAKING HOUSING 1 MORE AFFORDABLE 2 SEC. 101. LOCAL HOUSING INNOVATION GRANTS. 3 (a) DEFINITIONS.—In this section: 4 (1) ELEMENTARY SCHOOL; SECONDARY 5 SCHOOL.—The terms ‘‘elementary school’’ and ‘‘sec- 6 ondary school’’ have the meanings given those terms 7 in section 8101 of the Elementary and Secondary 8 Education Act of 1965 (20 U.S.C. 7801). 9 (2) ELIGIBLE ENTITY.—The term ‘‘eligible enti- 10 ty’’ means— 11 (A) a State; 12 (B) a unit of general local government; or 13 (C) a metropolitan area. 14 (3) INSTITUTION OF HIGHER EDUCATION.—The 15 term ‘‘institution of higher education’’ has the 16 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00002 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 3 •S 3503 IS meaning given the term in section 101 of the Higher 1 Education Act of 1965 (20 U.S.C. 1001). 2 (4) METROPOLITAN AREA; STATE; UNIT OF 3 GENERAL LOCAL GOVERNMENT.—The terms ‘‘metro- 4 politan area’’, ‘‘State’’, and ‘‘unit of general local 5 government’’ have the meanings given those terms in 6 section 102 of the Housing and Community Devel- 7 opment Act of 1974 (42 U.S.C. 5302). 8 (5) SECRETARY.—The term ‘‘Secretary’’ means 9 the Secretary of Housing and Urban Development. 10 (b) ESTABLISHMENT.—Not later than 1 year after 11 the date of enactment of this Act, the Secretary shall es- 12 tablish a program to make grants to eligible entities 13 that— 14 (1) reform local land use restrictions to bring 15 down the costs of producing affordable housing; and 16 (2) remove unnecessary barriers to building af- 17 fordable units in their communities. 18 (c) ELIGIBLE ACTIVITIES.—An eligible entity receiv- 19 ing a grant under this section may use funds to— 20 (1) carry out any of the activities described in 21 section 105 of the Housing and Community Devel- 22 opment Act of 1974 (42 U.S.C. 5305); 23 (2) carry out any of the activities permitted 24 under the program for national infrastructure in- 25 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00003 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 4 •S 3503 IS vestments (commonly known as the ‘‘Better Utilizing 1 Investments to Leverage Development (BUILD) dis- 2 cretionary grant program’’) authorized under title I 3 of division L of the Consolidated Appropriations Act, 4 2018 (Public Law 115–141) or a subsequent appro- 5 priations Act; or 6 (3) modernize, renovate, or repair facilities used 7 by public elementary schools, public secondary 8 schools, and public institutions of higher education, 9 including modernization, renovation, and repairs 10 that are consistent with a recognized green building 11 rating system. 12 (d) APPLICATION.— 13 (1) IN GENERAL.—An eligible entity desiring a 14 grant under this section shall submit to the Sec- 15 retary an application that demonstrates that the eli- 16 gible entity has carried out, or is in the process of 17 carrying out, initiatives that facilitate the expansion 18 of the supply of well-located affordable housing. 19 (2) ACTIVITIES.—Initiatives that meet the cri- 20 teria described in paragraph (1)— 21 (A) include— 22 (i) establishing ‘‘by-right’’ develop- 23 ment, which allows jurisdictions to admin- 24 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00004 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 5 •S 3503 IS istratively approve new developments that 1 are consistent their zoning code; 2 (ii) revising or eliminating off-street 3 parking requirements to reduce the cost of 4 housing production; 5 (iii) instituting measures that 6 incentivize owners of vacant land to rede- 7 velop the space into affordable housing or 8 other productive uses; 9 (iv) revising minimum lot size require- 10 ments and bans or limits on multifamily 11 construction to allow for denser and more 12 affordable development; 13 (v) instituting incentives to promote 14 dense development, such as density bo- 15 nuses; 16 (vi) passing inclusionary zoning ordi- 17 nances that require a portion of newly de- 18 veloped units to be reserved for low- and 19 moderate-income renters or homebuyers; 20 (vii) streamlining regulatory require- 21 ments and shortening processes, reforming 22 zoning codes, or other initiatives that re- 23 duce barriers to housing supply elasticity 24 and affordability; 25 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00005 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 6 •S 3503 IS (viii) allowing accessory dwelling 1 units; and 2 (ix) using local tax incentives to pro- 3 mote development of affordable housing; 4 and 5 (B) do not include activities that alter or- 6 dinances that govern wage and hour laws, fam- 7 ily and medical leave laws, or protections for 8 workers’ health and safety, anti-discrimination, 9 and right to organize. 10 (e) LABOR LAWS.— 11 (1) IN GENERAL.—All laborers and mechanics 12 employed by contractors or subcontractors in the 13 performance of construction work financed in whole 14 or in part with a grant received under this section 15 shall be paid wages at rates not less than those pre- 16 vailing on similar construction in the locality as de- 17 termined by the Secretary of Labor in accordance 18 with subchapter IV of chapter 31 of title 40, United 19 States Code (commonly known as the ‘‘Davis-Bacon 20 Act’’). 21 (2) EXCEPTION.—Paragraph (1) shall not 22 apply with respect to— 23 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00006 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 7 •S 3503 IS (A) the rehabilitation of residential prop- 1 erty if the property contains less than 8 units; 2 or 3 (B) construction carried out by employees 4 of the eligible entity receiving the grant under 5 this section. 6 (f) AUTHORIZATION OF APPROPRIATIONS.—There 7 are authorized to be appropriated to carry out this section 8 $2,000,000,000 for each of fiscal years 2019 through 9 2023. 10 SEC. 102. INVESTING IN AFFORDABLE HOUSING INFRA- 11 STRUCTURE. 12 (a) HOUSING TRUST FUND.—Section 1338(a) of the 13 Federal Housing Enterprises Financial Safety and Sound- 14 ness Act of 1992 (12 U.S.C. 4568(a)) is amended by add- 15 ing at the end the following: 16 ‘‘(3) AUTHORIZATION OF APPROPRIATIONS.— 17 There is authorized to be appropriated to the Hous- 18 ing Trust Fund $44,500,000,000 for each of fiscal 19 years 2019 through 2028.’’. 20 (b) CAPITAL MAGNET FUND.—Section 1339 of the 21 Federal Housing Enterprises Financial Safety and Sound- 22 ness Act of 1992 (12 U.S.C. 4569) is amended by adding 23 at the end the following: 24 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00007 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 8 •S 3503 IS ‘‘(k) AUTHORIZATION OF APPROPRIATIONS.—There 1 is authorized to be appropriated to the Capital Magnet 2 Fund $2,500,000,000 for each of fiscal years 2019 3 through 2028.’’. 4 (c) INDIAN HOUSING BLOCK GRANT PROGRAM.— 5 Section 108 of the Native American Housing Assistance 6 and Self-Determination Act of 1996 (25 U.S.C. 4117) is 7 amended— 8 (1) by striking ‘‘such sums as may be necessary 9 for each of fiscal years 2009 through 2013’’ and in- 10 serting ‘‘$2,500,000,000 for fiscal year 2019 and 11 such sums as may be necessary for each of fiscal 12 years 2020 through 2028’’; and 13 (2) by striking the second sentence. 14 (d) RURAL HOUSING PROGRAMS.—Out of funds in 15 the Treasury not otherwise appropriated, there is appro- 16 priated for fiscal year 2019— 17 (1) to provide direct loans under section 502 of 18 the Housing Act of 1949 (42 U.S.C. 1472), 19 $140,000,000; 20 (2) to provide assistance under section 514 of 21 such Act (42 U.S.C. 1484), $28,000,000; 22 (3) to provide assistance under section 515 of 23 such Act (42 U.S.C. 1485), $180,000,000; 24 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00008 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 9 •S 3503 IS (4) to provide assistance under section 516 of 1 such Act (42 U.S.C. 1486), $100,000,000; and 2 (5) to provide direct loans under section 523 of 3 such Act (42 U.S.C. 1490c), $75,000,000. 4 (e) MIDDLE CLASS HOUSING EMERGENCY FUND.— 5 (1) DEFINITION.—In this subsection, the term 6 ‘‘affordable rental housing unit’’ means a unit for 7 which monthly rent is 30 percent or less than the 8 monthly area median income. 9 (2) ESTABLISHMENT.—The Secretary of Hous- 10 ing and Urban Development shall establish and 11 manage a fund, to be known as the ‘‘Middle Class 12 Housing Emergency Fund’’, which shall be funded 13 with any amounts as may be appropriated, trans- 14 ferred, or credited to the Fund under any provision 15 law. 16 (3) GRANTS.—From amounts available in the 17 fund established under paragraph (1), the Secretary 18 of Housing and Urban Development shall award 19 grants on a competitive basis to State housing fi- 20 nance agencies located in a State in which— 21 (A) there is a shortage of affordable rental 22 housing units available to individuals with an 23 income that is at or below the area median in- 24 come and median rents have risen on average 25 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00009 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 10 •S 3503 IS over the preceding 3 years substantially faster 1 than the area median income; or 2 (B) there is a shortage of housing units 3 available for sale that are affordable to individ- 4 uals with an income that is at or below the area 5 median income and median home prices have 6 risen on average over the preceding 3 years 7 substantially faster than the area median in- 8 come. 9 (4) USE OF FUNDS.—Grants received under 10 this subsection shall be used to fund the construc- 11 tion of rental housing units that are affordable to 12 residents making less than 120 percent of the area 13 median income. 14 (5) LABOR LAWS.— 15 (A) IN GENERAL.—All laborers and me- 16 chanics employed by contractors or subcontrac- 17 tors in the performance of construction work fi- 18 nanced in whole or in part with a grant received 19 under this subsection shall be paid wages at 20 rates not less than those prevailing on similar 21 construction in the locality as determined by 22 the Secretary of Labor in accordance with sub- 23 chapter IV of chapter 31 of title 40, United 24 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00010 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 11 •S 3503 IS States Code (commonly known as the ‘‘Davis- 1 Bacon Act’’). 2 (B) EXCEPTION.—Subparagraph (A) shall 3 not apply with respect to— 4 (i) the rehabilitation of residential 5 property if the property contains less than 6 8 units; or 7 (ii) construction carried out by em- 8 ployees of the eligible entity receiving the 9 grant under this section. 10 (6) REGULATIONS.—The Secretary of Housing 11 and Urban Development shall promulgate regula- 12 tions to carry out this subsection, including with re- 13 spect to the metrics the Secretary shall use to deter- 14 mine eligibility for a grant under this subsection. 15 (7) APPROPRIATIONS.—Out of funds in the 16 Treasury not otherwise appropriated, there is appro- 17 priated to the fund established under this subsection 18 $4,000,000,000 for fiscal year 2019. 19 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00011 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 12 •S 3503 IS TITLE II—REVERSING THE LEG- 1 ACY OF HOUSING DISCRIMI- 2 NATION AND GOVERNMENT 3 NEGLIGENCE 4 SEC. 201. DOWN PAYMENT ASSISTANCE PROGRAM FOR 5 COMMUNITIES FORMERLY SEGREGATED BY 6 LAW. 7 (a) DEFINITIONS.—In this section: 8 (1) ELIGIBLE RESIDENT.—The term ‘‘eligible 9 resident’’ means a resident of a geographic area, as 10 defined by the Secretary by regulation under sub- 11 section (e), who— 12 (A) is a first-time homebuyer; 13 (B) resided in that geographic area during 14 the 4-year period preceding the date of enact- 15 ment of this Act; and 16 (C) has an income that is less than 120 17 percent of the area median income. 18 (2) FIRST-TIME HOMEBUYER.—The term ‘‘first- 19 time homebuyer’’ means an individual (and if mar- 20 ried, the spouse of the individual) who has had no 21 ownership in a principal residence during the 3-year 22 period ending on the date of purchase of the prop- 23 erty. 24 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00012 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 13 •S 3503 IS (3) SECRETARY.—The term ‘‘Secretary’’ means 1 the Secretary of Housing and Urban Development. 2 (b) ESTABLISHMENT.—There is established in the 3 Office of Housing of the Department of Housing and 4 Urban Development a fund, to be administered by the Sec- 5 retary, that shall be used— 6 (1) to provide grants to eligible residents to 7 purchase homes; and 8 (2) for outreach to financial institutions in tar- 9 geted areas and eligible residents. 10 (c) GRANT AMOUNT.—Eligible residents may receive 11 a grant from the fund established under subsection (b) 12 in an amount equal to— 13 (1) not more than 3.5 percent of the appraised 14 value of the property to be purchased; or 15 (2) if the appraised value is more than the prin- 16 cipal obligation amount limitation for mortgages in- 17 sured under title II of the National Housing Act (12 18 U.S.C. 1707 et seq.), 3.5 percent of the maximum 19 principal obligation limitation for the property to be 20 purchased. 21 (d) FHA LOAN.—An eligible resident is not required 22 to obtain a mortgage that is insured under title II of the 23 National Housing Act (12 U.S.C. 1707 et seq.) as a condi- 24 tion of receiving a grant under this section. 25 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00013 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 14 •S 3503 IS (e) REGULATIONS AND DATABASE.—Not later than 1 1 year after the date of enactment of this Act, the Sec- 2 retary shall— 3 (1) finalize regulations relating to the use of 4 the fund established under subsection (b), including 5 defining the geographic areas in which residents are 6 eligible to receive grants through the fund, which 7 shall include— 8 (A) census tracts graded as ‘‘hazardous’’ 9 in maps drawn by the Home Owners’ Loan 10 Corporation that are, as of the date of enact- 11 ment of this Act, low-income communities; and 12 (B) census tracts that were designated for 13 non-White citizens in jurisdictions that histori- 14 cally had racially segregated zoning codes and 15 are, as of the date of enactment of this Act, 16 low-income communities; 17 (2) finalize regulations relating to the disburse- 18 ment of funds under this section to ensure that eligi- 19 ble residents are able to receive funds before the 20 closing date for their home, which may include cre- 21 ating a program that allows a lender to be reim- 22 bursed by the fund established under subsection (b) 23 if the lender— 24 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00014 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 15 •S 3503 IS (A) provides the eligible resident with 1 funds for the closing; or 2 (B) allows eligible residents to be 3 preapproved to receive assistance under this 4 section when arranging financing for their 5 home; 6 (3) create a publicly accessible database that al- 7 lows individuals, real estate professionals, and lend- 8 ers to determine whether a borrower is eligible for 9 assistance under this section; and 10 (4) establish methods to verify that an indi- 11 vidual is an eligible resident. 12 (f) APPROPRIATIONS.—Out of funds in the Treasury 13 not otherwise appropriated, there are appropriated to the 14 fund established under subsection (b) such sums as may 15 be necessary for each of fiscal years 2019 through 2028 16 to provide grants under this section and to carry out con- 17 sumer education efforts related to this section. 18 (g) INCLUSION OF PROGRAM IN HOME BUYING IN- 19 FORMATION BOOKLETS.—Section 5(b) of the Real Estate 20 Settlement Procedures Act of 1974 (12 U.S.C. 2605) is 21 amended by inserting after paragraph (14) the following: 22 ‘‘(15) Information relating to the down pay- 23 ment assistance program established under section 24 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00015 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 16 •S 3503 IS 201 of the American Housing and Economic Mobil- 1 ity Act of 2018.’’. 2 (h) INCLUSION OF PROGRAM AS MORTGAGE PROD- 3 UCT.—Section 203(f)(1) of the National Housing Act (12 4 U.S.C. 1709(f)(1)) is amended by inserting ‘‘, including 5 the down payment assistance program established under 6 section 201 of the American Housing and Economic Mo- 7 bility Act of 2018’’ after ‘‘mortgage products,’’. 8 SEC. 202. FORMULA GRANT PROGRAM FOR COMMUNITIES 9 THAT HAVE NOT RECOVERED FROM THE FI- 10 NANCIAL CRISIS. 11 (a) ESTABLISHMENT.—The Secretary of Housing 12 and Urban Development shall establish a formula grant 13 program to provide funding to States to assist borrowers 14 with negative equity in their primary residence through— 15 (1) loan modifications or loan refinancing pro- 16 grams that provide principal reduction; 17 (2) programs to purchase or rehabilitate vacant 18 land and foreclosed homes to enhance neighborhood 19 property values; and 20 (3) loan programs to help underwater borrowers 21 rehabilitate or conduct maintenance on their homes. 22 (b) FORMULA.—The Secretary of Housing and 23 Urban Development shall distribute amounts under this 24 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00016 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 17 •S 3503 IS section based on the number of borrowers in the State 1 with a primary residence with negative equity. 2 (c) AUTHORIZATION OF APPROPRIATIONS.—There is 3 authorized to be appropriated to carry out this section 4 $2,000,000,000 for fiscal year 2019. 5 SEC. 203. STRENGTHENING THE COMMUNITY REINVEST- 6 MENT ACT OF 1977. 7 (a) SHORT TITLE.—This section may be cited as the 8 ‘‘Community Reinvestment Reform Act of 2018’’. 9 (b) AMENDMENTS TO THE COMMUNITY REINVEST- 10 MENT ACT OF 1977.—The Community Reinvestment Act 11 of 1977 (12 U.S.C. 2901 et seq.) is amended— 12 (1) by amending sections 802 and 803 (12 13 U.S.C. 2901, 2902) to read as follows: 14 ‘‘SEC. 802. FINDINGS AND PURPOSE. 15 ‘‘(a) FINDINGS.—Congress finds that— 16 ‘‘(1) regulated financial institutions are re- 17 quired by law to demonstrate that they serve the 18 convenience and needs of the communities in which 19 they are chartered or do business, in particular low- 20 and moderate-income communities; 21 ‘‘(2) the convenience and needs of communities 22 include the need for credit services, deposit services, 23 transaction services, other financial services, and 24 community development loans and investments; and 25 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00017 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 18 •S 3503 IS ‘‘(3) regulated financial institutions have a con- 1 tinuing and affirmative obligation to meet the credit 2 or other financial needs of the local communities in 3 which they are chartered or do business. 4 ‘‘(b) PURPOSE.—It is the purpose of this title to re- 5 quire each appropriate Federal financial supervisory agen- 6 cy to use its authority when examining regulated financial 7 institutions to ensure that those institutions meet the 8 credit or other financial needs of the local communities 9 in which they are chartered or do business consistent with 10 the safe and sound operation of those institutions. 11 ‘‘SEC. 803. DEFINITIONS. 12 ‘‘In this title: 13 ‘‘(1) APPLICATION FOR A DEPOSIT FACILITY.— 14 The term ‘application for a deposit facility’ means 15 an application to the appropriate Federal financial 16 supervisory agency otherwise required under Federal 17 law or regulations thereunder for— 18 ‘‘(A) a charter for a national bank or Fed- 19 eral savings and loan association; 20 ‘‘(B) deposit insurance in connection with 21 a newly chartered State bank, savings bank, 22 savings and loan association, or similar institu- 23 tion; 24 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00018 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 19 •S 3503 IS ‘‘(C) the establishment of a domestic 1 branch or other facility with the ability to ac- 2 cept deposits of a regulated financial institu- 3 tion; 4 ‘‘(D) the relocation of the home office or a 5 branch office of a regulated financial institu- 6 tion; 7 ‘‘(E) the merger or consolidation with, or 8 the acquisition of the assets, or the assumption 9 of the liabilities of a regulated financial institu- 10 tion requiring approval under section 18(c) of 11 the Federal Deposit Insurance Act (12 U.S.C. 12 1828(c)); or 13 ‘‘(F) the acquisition of shares in, or the as- 14 sets of, a regulated financial institution requir- 15 ing approval under section 3 of the Bank Hold- 16 ing Company Act of 1956 (12 U.S.C. 1842). 17 ‘‘(2) APPROPRIATE FEDERAL BANKING AGEN- 18 CY.—The term ‘appropriate Federal banking agency’ 19 has the meaning given the term in section 3 of the 20 Federal Deposit Insurance Act (12 U.S.C. 1813). 21 ‘‘(3) APPROPRIATE FEDERAL FINANCIAL SU- 22 PERVISORY AGENCY.—The term ‘appropriate Fed- 23 eral financial supervisory agency’ means— 24 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00019 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 20 •S 3503 IS ‘‘(A) the appropriate Federal banking 1 agency with respect to depository institutions 2 and depository institution holding companies; 3 ‘‘(B) the Bureau of Consumer Financial 4 Protection with respect to any covered person 5 supervised by the Bureau pursuant to section 6 1024 of the Dodd-Frank Wall Street Reform 7 and Consumer Protection Act (12 U.S.C. 8 5514); and 9 ‘‘(C) the National Credit Union Adminis- 10 tration with respect to credit unions that are 11 not designated as low-income credit unions. 12 ‘‘(4) ASSESSMENT AREA.—The term ‘assess- 13 ment area’ means, with respect to a regulated finan- 14 cial institution, each community, including a State, 15 metropolitan area, and urban or rural county, in 16 which the institution— 17 ‘‘(A) maintains deposit-taking branches, 18 automated teller machines, or retail offices; 19 ‘‘(B) is represented by an agent; 20 ‘‘(C) issues a significant number of loans 21 or other products relative to the total number 22 of loans or other products made by the institu- 23 tion; 24 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00020 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 21 •S 3503 IS ‘‘(D) has issued not less than 75 percent 1 of the loans of the institution; or 2 ‘‘(E) has conducted not less than 75 per- 3 cent of the business of the institution. 4 ‘‘(5) COMMUNITY BENEFITS PLAN.—The term 5 ‘community benefits plan’ means a plan that pro- 6 vides measurable goals for future amounts of safe 7 and sound loans, investments, services, and other fi- 8 nancial products for low- and moderate-income com- 9 munities and other underserved or distressed com- 10 munities. 11 ‘‘(6) COMMUNITY DEVELOPMENT.—The term 12 ‘community development’ means— 13 ‘‘(A) affordable housing for low- or mod- 14 erate-income individuals and avoidance of pat- 15 terns of lending resulting in the loss of afford- 16 able housing units; 17 ‘‘(B) community development services in- 18 cluding counseling and successful mortgage or 19 loan modifications of delinquent loans; 20 ‘‘(C) activities that promote integration; 21 ‘‘(D) activities that promote economic de- 22 velopment by financing small businesses or 23 farms that meet the size eligibility requirements 24 of the development company or small business 25 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00021 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 22 •S 3503 IS investment company programs under section 1 121.301 of title 13, Code of Federal Regula- 2 tions, or any successor thereto, with an empha- 3 sis on small businesses that have gross annual 4 revenues of not more than $1,000,000; or 5 ‘‘(E) activities that revitalize or stabilize— 6 ‘‘(i) low- or moderate-income geog- 7 raphies; 8 ‘‘(ii) designated disaster areas; 9 ‘‘(iii) distressed or underserved non- 10 metropolitan middle-income geographies 11 designated by the Federal Financial Insti- 12 tutions Examination Council, based on— 13 ‘‘(I) rates of poverty, unemploy- 14 ment, and population loss; or 15 ‘‘(II) population size, density, 16 and dispersion, if those activities help 17 to meet essential community needs, 18 including the needs of low- and mod- 19 erate-income individuals; or 20 ‘‘(iv) other distressed and underserved 21 communities. 22 ‘‘(7) DEPOSITORY INSTITUTION; DEPOSITORY 23 INSTITUTION HOLDING COMPANY.—The terms ‘de- 24 pository institution’ and ‘depository institution hold- 25 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00022 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 23 •S 3503 IS ing company’ have the meanings given those terms 1 in section 3 of the Federal Deposit Insurance Act 2 (12 U.S.C. 1813). 3 ‘‘(8) ENTIRE COMMUNITY.—The term ‘entire 4 community’ means all of the assessment areas of a 5 regulated financial institution. 6 ‘‘(9) ENUMERATED CONSUMER LAWS.—The 7 term ‘enumerated consumer laws’ has the meaning 8 given the term in section 1002 of the Consumer Fi- 9 nancial Protection Act of 2010 (12 U.S.C. 5481). 10 ‘‘(10) GEOGRAPHY.—The term ‘geography’ 11 means a census tract delineated by the Bureau of 12 the Census in the most recent decennial census. 13 ‘‘(11) INSURED DEPOSITORY INSTITUTION.— 14 The term ‘insured depository institution’ has the 15 meaning given the term in section 3 of the Federal 16 Deposit Insurance Act (12 U.S.C. 1813). 17 ‘‘(12) OTHER DISTRESSED OR UNDERSERVED 18 COMMUNITY.—The term ‘other distressed or under- 19 served community’ means an area that, according to 20 a periodic review and data analysis by the appro- 21 priate Federal financial supervisory agencies on an 22 interagency basis through the Federal Financial In- 23 stitutions Examination Council, is experiencing eco- 24 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00023 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 24 •S 3503 IS nomic hardship or is underserved by financial insti- 1 tutions. 2 ‘‘(13) REGULATED FINANCIAL INSTITUTION.— 3 The term ‘regulated financial institution’ means— 4 ‘‘(A) an insured depository institution; 5 ‘‘(B) a depository institution holding com- 6 pany; 7 ‘‘(C) a credit union, other than a low-in- 8 come credit union; and 9 ‘‘(D) a U.S. nonbank mortgage originator. 10 ‘‘(14) U.S. NONBANK MORTGAGE ORIGI- 11 NATOR.—The term ‘U.S. nonbank mortgage origi- 12 nator’ means a covered person subject to section 13 1024 of the Dodd-Frank Wall Street Reform and 14 Consumer Protection Act (12 U.S.C. 5514) that of- 15 fers or provides— 16 ‘‘(A) origination of loans secured by real 17 estate for use by consumers primarily for per- 18 sonal, family, or household purposes; or 19 ‘‘(B) loan modification or foreclosure relief 20 services in connection with a loan described in 21 subparagraph (A).’’; 22 (2) in section 804 (12 U.S.C. 2903)— 23 (A) by redesignating subsections (c) and 24 (d) as subsections (f) and (g), respectively; 25 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00024 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 25 •S 3503 IS (B) by striking subsections (a) and (b) and 1 inserting the following: 2 ‘‘(a) DEPOSITORY INSTITUTIONS AND BANK HOLD- 3 ING COMPANIES.—In connection with its examination of 4 a regulated financial institution other than a U.S. 5 nonbank mortgage originator, the appropriate Federal fi- 6 nancial supervisory agency shall perform the following: 7 ‘‘(1) Assess the record of the institution in 8 meeting the credit or other financial needs of its en- 9 tire community, in particular low- and moderate-in- 10 come people and communities, and distressed or un- 11 derserved communities, consistent with the safe and 12 sound operation of the institution. 13 ‘‘(2) Assess the effectiveness of the following 14 activities in meeting the credit or other financial 15 needs of the assessment areas of the institution, con- 16 sistent with the safe and sound operation of the in- 17 stitution: 18 ‘‘(A) Retail lending, including home, small 19 business, consumer, and other lending and fi- 20 nancial products, that responds to credit needs 21 or other financial needs. 22 ‘‘(B) Community development lending and 23 investments, which may include a consideration 24 of— 25 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00025 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 26 •S 3503 IS ‘‘(i) the origination of loans and other 1 efforts by the institution to assist existing 2 low- and moderate-income residents to re- 3 main in affordable housing in their com- 4 munity; and 5 ‘‘(ii) the origination of loans by the 6 institution that result in the construction, 7 rehabilitation, or preservation of affordable 8 housing units. 9 ‘‘(C) Retail financial services and commu- 10 nity development services. 11 ‘‘(3) With respect to its evaluation of an appli- 12 cation for a deposit facility by the institution— 13 ‘‘(A) consider the record described in para- 14 graph (1), the overall rating of the institution 15 under this section, and any improvement plans 16 submitted pursuant to this section; 17 ‘‘(B) provide an opportunity for public 18 comment for a period of not less than 60 days; 19 ‘‘(C) consider changes in the community 20 reinvestment performance of the institution 21 since the most recent rating under this section 22 by the appropriate Federal financial supervisory 23 agency; and 24 ‘‘(D) require— 25 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00026 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 27 •S 3503 IS ‘‘(i) a demonstration of public benefit, 1 including a community benefits plan with 2 measurable goals regarding increasing re- 3 sponsible lending and other financial prod- 4 ucts; 5 ‘‘(ii) that the institution consult with 6 community-based organizations and other 7 community stakeholders in developing the 8 community benefits plan; and 9 ‘‘(iii) a public hearing for any institu- 10 tion that has a received a ‘need-to-improve’ 11 or ‘sufficient’ grade in any individual as- 12 sessment area during the most recent ex- 13 amination. 14 ‘‘(b) U.S. NONBANK MORTGAGE ORIGINATOR.—In 15 connection with its examination of a U.S. nonbank mort- 16 gage originator, the appropriate Federal financial super- 17 visory agency shall perform the following: 18 ‘‘(1) Assess the record of the U.S. nonbank 19 mortgage originator in meeting the credit or other 20 financial needs of its entire community, in particular 21 low-income and moderate-income people and commu- 22 nities, consistent with the safe and sound operation 23 of the U.S. nonbank mortgage originator. 24 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00027 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 28 •S 3503 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 or loans to com- 18 munity development financial institutions 19 (as defined in section 103 of the Commu- 20 nity Development Banking and Financial 21 Institutions Act of 1994 (12 U.S.C. 22 4702)), community development corpora- 23 tions (as defined in section 613 of the 24 Community Economic Development Act of 25 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00028 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 29 •S 3503 IS 1981 (42 U.S.C. 9802)), and other non- 1 profit 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 by 23 the U.S. nonbank mortgage originator to 24 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00029 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 30 •S 3503 IS the appropriate Federal financial super- 1 visory agency; 2 ‘‘(ii) that the U.S. nonbank mortgage 3 originator consult with community-based 4 organizations and other community stake- 5 holders in developing the community bene- 6 fits plan; and 7 ‘‘(iii) a public hearing for any U.S. 8 nonbank mortgage originator that has a 9 received a ‘need-to-improve’ or ‘sufficient’ 10 grade in any individual assessment area 11 during the most recent examination. 12 ‘‘(c) REQUIREMENTS.— 13 ‘‘(1) IN GENERAL.—In connection with its ex- 14 amination of a regulated financial institution under 15 subsection (a) or (b), the appropriate Federal finan- 16 cial supervisory agency shall— 17 ‘‘(A) consider public comments received by 18 the appropriate Federal financial supervisory 19 agency regarding the record of the institution in 20 meeting the credit or other financial needs of 21 its entire community, including low- and mod- 22 erate-income communities; and 23 ‘‘(B) require an improvement plan for an 24 institution that receives a rating of ‘sufficient’ 25 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00030 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 31 •S 3503 IS or lower on the written evaluation of the insti- 1 tution, or such a rating in any individual as- 2 sessment area, and require the improvement 3 plan to result in the reasonable likelihood that 4 the institution will obtain a rating of at least 5 ‘satisfactory record of meeting community cred- 6 it or other financial needs’ in the relevant meas- 7 ure on the next examination. 8 ‘‘(2) IMPROVEMENT PLAN.— 9 ‘‘(A) IN GENERAL.—A regulated financial 10 institution that is required to submit an im- 11 provement plan required under paragraph 12 (1)(B) shall submit the plan in writing to the 13 appropriate Federal financial supervisory agen- 14 cy not later than 90 days after receiving notice 15 that the regulated financial institution is re- 16 quired to submit the plan. 17 ‘‘(B) PUBLIC COMMENT.—Upon receipt of 18 an improvement plan of a regulated financial 19 institution required under paragraph (1)(B), 20 the appropriate Federal financial supervisory 21 agency shall— 22 ‘‘(i) make the plan available to the 23 public for review and comment for a period 24 of not less than 60 days; and 25 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00031 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 32 •S 3503 IS ‘‘(ii) require the regulated financial 1 institution to revise, as appropriate, the 2 improvement plan in response to the public 3 comments received under the public review 4 and comment period described in clause (i) 5 and submit the plan to the appropriate 6 Federal financial supervisory agency not 7 later than 60 days after the end of that pe- 8 riod. 9 ‘‘(3) EXAMINATION OF CERTAIN REGULATED 10 FINANCIAL INSTITUTIONS.—In the case of a regu- 11 lated financial institution whose lending or other 12 business is not clustered in geographical areas and 13 is thinly dispersed across the country, the institution 14 shall— 15 ‘‘(A) be evaluated under subsection (a) or 16 (b), as applicable— 17 ‘‘(i) by considering the effectiveness of 18 the institution in serving customers or bor- 19 rowers, with a special emphasis on low- 20 and moderate-income individuals across the 21 country regardless of where the individuals 22 reside; and 23 ‘‘(ii) based on objective thresholds de- 24 veloped by the appropriate Federal finan- 25 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00032 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 33 •S 3503 IS cial supervisory agencies to clarify when 1 lending or other business is dispersed 2 across the country and not clustered in 3 distinct geographical areas, which may in- 4 clude low levels of lending or other finan- 5 cial products across States or other areas; 6 and 7 ‘‘(B) meet the needs of other distressed or 8 underserved communities. 9 ‘‘(d) CONSIDERATION.—Remediation of consumers 10 pursuant to an order by an court or administrative body 11 or a settlement with a government agency or a private 12 party shall not be considered in an assessment conducted 13 under subsection (a)(2) or (b)(2). 14 ‘‘(e) RULE OF CONSTRUCTION.—An evaluation of a 15 bank holding company under this section shall incorporate 16 evaluations of subsidiary regulated financial institutions 17 made by each subsidiary’s appropriate Federal financial 18 supervisory agency, if applicable.’’; 19 (C) in subsection (f), as so redesignated— 20 (i) by striking paragraph (2); and 21 (ii) by redesignating paragraph (3) as 22 paragraph (2); and 23 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00033 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 34 •S 3503 IS (D) in subsection (g), as so redesignated, 1 by striking ‘‘subsection (a)’’ and inserting ‘‘sub- 2 sections (a) and (b)’’; 3 (3) in section 807 (12 U.S.C. 2906)— 4 (A) in subsection (a)— 5 (i) by striking ‘‘an insured depository 6 institution’’ and inserting ‘‘a regulated fi- 7 nancial institution’’; and 8 (ii) by inserting ‘‘or financial’’ after 9 ‘‘credit’’; 10 (B) in subsection (b)— 11 (i) in paragraph (1)— 12 (I) in subparagraph (A)— 13 (aa) in clause (ii), by strik- 14 ing ‘‘and’’ at the end; 15 (bb) by redesignating clause 16 (iii) as clause (iv); and 17 (cc) by inserting after clause 18 (ii) the following: 19 ‘‘(iii) disclose whether the institution en- 20 gaged in acts or practices that the Bureau of 21 Consumer Financial Protection has determined, 22 and has publicly disclosed, violate the enumer- 23 ated consumer laws; and’’; and 24 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00034 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 35 •S 3503 IS (II) by striking subparagraph (B) 1 and inserting the following: 2 ‘‘(B) METROPOLITAN AREA DISTINCTIONS.— 3 The information required under clauses (i) and (ii) 4 of subparagraph (A) shall be presented separately 5 for each assessment area. 6 ‘‘(C) TREATMENT WITH RESPECT TO VIOLA- 7 TIONS OF ENUMERATED CONSUMER LAWS.—If a 8 regulated financial institution has engaged in acts or 9 practices that the appropriate Federal financial su- 10 pervisory agency has determined to be unfair, decep- 11 tive, or abusive or acts or practices that violate enu- 12 merated consumer laws intended to ensure the fair, 13 equitable, and nondiscriminatory access to credit for 14 individuals and communities that are enforced by 15 the Bureau of Consumer Financial Protection or 16 other Federal or State agencies, the written evalua- 17 tion shall be negatively influenced in a manner com- 18 mensurate with the extent of the harm suffered by 19 those individuals and communities.’’; 20 (ii) in paragraph (2)— 21 (I) by striking subparagraphs 22 (A), (B), (C), and (D) and inserting 23 the following: 24 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00035 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 36 •S 3503 IS ‘‘(A) ‘Outstanding record of meeting com- 1 munity credit or other financial needs’. 2 ‘‘(B) ‘Satisfactory record of meeting com- 3 munity credit or other financial needs’. 4 ‘‘(C) ‘Sufficient record of meeting commu- 5 nity credit or other financial needs’. 6 ‘‘(D) ‘Needs to improve record of meeting 7 community credit or other financial needs’. 8 ‘‘(E) ‘Substantial noncompliance in meet- 9 ing community credit or other financial 10 needs’.’’; and 11 (iii) by inserting after the flush text 12 following paragraph (2) the following: 13 ‘‘(3) ADDITIONAL AUTHORITY.—The appro- 14 priate Federal financial supervisory agencies may— 15 ‘‘(A) alter the ratings under this sub- 16 section to change or include additional ratings; 17 and 18 ‘‘(B) develop an accompanying point sys- 19 tem that includes ranges for each rating cat- 20 egory under paragraph (2).’’; 21 (C) by redesignating subsection (e) as sub- 22 section (g); and 23 (D) by inserting after subsection (d) the 24 following: 25 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00036 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 37 •S 3503 IS ‘‘(e) APPEALS OF RATING.—If a regulated financial 1 institution appeals the assigned rating under this section, 2 the appropriate Federal financial supervisory agency shall 3 post a public notice of the appeal on the website of the 4 appropriate Federal financial supervisory agency.’’; and 5 (4) by adding at the end the following: 6 ‘‘SEC. 810. DATA COLLECTION AND REPORTING REQUIRE- 7 MENTS. 8 ‘‘(a) DATA COLLECTION.— 9 ‘‘(1) SMALL BUSINESS AND SMALL FARM 10 LOANS.—Each regulated financial institution shall 11 collect and maintain in machine readable form, as 12 prescribed by the appropriate Federal financial su- 13 pervisory agency, until the completion of the next ex- 14 amination under this title, the following data for 15 each small business or small farm loan originated or 16 purchased by the regulated financial institution: 17 ‘‘(A) A unique number or alpha-numeric 18 symbol that can be used to identify the relevant 19 loan. 20 ‘‘(B) The loan amount at origination. 21 ‘‘(C) The loan location. 22 ‘‘(D) An indicator whether the loan was to 23 a business or farm with gross annual revenues 24 of $1,000,000 or less. 25 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00037 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 38 •S 3503 IS ‘‘(2) CONSUMER LOANS.—Each regulated finan- 1 cial institution shall collect and maintain in machine 2 readable form, as prescribed by the appropriate Fed- 3 eral financial supervisory agency, data for consumer 4 loans originated or purchased by the regulated fi- 5 nancial institution, including motor vehicle loans, 6 credit cards, home equity loans, and other secured 7 or unsecured loans. The regulated financial institu- 8 tion shall maintain data separately for each category 9 of consumer loan, including the following for each 10 loan: 11 ‘‘(A) A unique number or alpha-numeric 12 symbol that can be used to identify the relevant 13 loan. 14 ‘‘(B) The loan amount at origination or 15 purchase. 16 ‘‘(C) The loan location. 17 ‘‘(D) The gross annual income of the bor- 18 rower that the regulated financial institution 19 considered in making its credit decision. 20 ‘‘(3) COMMUNITY DEVELOPMENT LOANS AND 21 INVESTMENTS.—Each regulated financial institution 22 shall collect and maintain in machine readable form, 23 as prescribed by the appropriate Federal financial 24 supervisory agency, data on the categories of com- 25 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00038 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 39 •S 3503 IS munity development lending and investments, includ- 1 ing data regarding financing affordable housing, 2 small business development, and economic develop- 3 ment. 4 ‘‘(4) ASSESSMENT AREA DATA.—Each regu- 5 lated financial institution shall collect and report to 6 the appropriate Federal financial supervisory agency 7 by March 1 of each year a list for each assessment 8 area showing the geographies within the area. 9 ‘‘(5) DEPOSITS.—The appropriate Federal Su- 10 pervisory agency shall collect data from regulated fi- 11 nancial institutions that reflects how many of the 12 customers of those institutions are low- and mod- 13 erate-income customers and the services that are 14 used by those customers. 15 ‘‘(b) CRA SMALL BUSINESS DISCLOSURE STATE- 16 MENT.—The appropriate Federal financial supervisory 17 agency shall prepare annually for each regulated financial 18 institution that reports data pursuant to this section a 19 statement to be known as the ‘CRA Small Business Dis- 20 closure Statement’ that contains, on a State-by-State 21 basis, the following: 22 ‘‘(1) For each county (and for each assessment 23 area smaller than a county) with a population of 24 500,000 persons or fewer in which the regulated fi- 25 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00039 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 40 •S 3503 IS nancial institution reported a small business or small 1 farm loan: 2 ‘‘(A) The number and amount of small 3 business and small farm loans reported as origi- 4 nated or purchased located in low-, moderate-, 5 middle-, and upper-income geographies. 6 ‘‘(B) A list grouping each geography ac- 7 cording to whether the geography is low-, mod- 8 erate-, middle-, or upper-income. 9 ‘‘(C) A list showing each geography in 10 which the regulated financial institution re- 11 ported a small business or small farm loan. 12 ‘‘(D) The number and amount of small 13 business and small farm loans to businesses 14 and farms with gross annual revenues of 15 $1,000,000 or less. 16 ‘‘(2) For each county (and for each assessment 17 area smaller than a county) with a population in ex- 18 cess of 500,000 in which the regulated financial in- 19 stitution reported a small business or small farm 20 loan: 21 ‘‘(A) The number and amount of small 22 business and small farm loans reported as origi- 23 nated or purchased located in geographies with 24 median income relative to the area median in- 25 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00040 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 41 •S 3503 IS come of less than 10 percent, 10 or more but 1 less than 20 percent, 20 or more but less than 2 30 percent, 30 or more but less than 40 per- 3 cent, 40 or more but less than 50 percent, 50 4 or more but less than 60 percent, 60 or more 5 but less than 70 percent, 70 or more but less 6 than 80 percent, 80 or more but less than 90 7 percent, 90 or more but less than 100 percent, 8 100 or more but less than 110 percent, 110 or 9 more but less than 120 percent, and 120 per- 10 cent or more. 11 ‘‘(B) A list grouping each geography in the 12 county or assessment area according to whether 13 the median income in the geography relative to 14 the area median income is less than 10 percent, 15 10 or more but less than 20 percent, 20 or 16 more but less than 30 percent, 30 or more but 17 less than 40 percent, 40 or more but less than 18 50 percent, 50 or more but less than 60 per- 19 cent, 60 or more but less than 70 percent, 70 20 or more but less than 80 percent, 80 or more 21 but less than 90 percent, 90 or more but less 22 than 100 percent, 100 or more but less than 23 110 percent, 110 or more but less than 120 24 percent, and 120 percent or more. 25 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00041 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 42 •S 3503 IS ‘‘(C) A list showing each geography in 1 which the regulated financial institution re- 2 ported a small business or small farm loan. 3 ‘‘(D) The number and amount of small 4 business and small farm loans to businesses 5 and farms with gross annual revenues of 6 $1,000,000 or less. 7 ‘‘(3) The number and amount of small business 8 and small farm loans located inside each assessment 9 area reported by the regulated financial institution 10 and the number and amount of small business and 11 small farm loans located outside the assessment 12 areas reported by the regulated financial institution. 13 ‘‘(4) The number and amount of community de- 14 velopment loans reported as originated or purchased. 15 ‘‘(c) AGGREGATE DISCLOSURE STATEMENTS.— 16 ‘‘(1) IN GENERAL.—Each appropriate Federal 17 financial supervisory agency shall prepare annually, 18 for each county and for each assessment area small- 19 er than a county, an aggregate disclosure statement 20 of small business, small farm, and consumer lending 21 by all regulated financial institutions subject to re- 22 porting under this section, which shall indicate, for 23 each geography, the number and amount of all small 24 business, small farm, and consumer loans originated 25 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00042 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 43 •S 3503 IS or purchased by reporting regulated financial insti- 1 tutions. 2 ‘‘(2) ADJUSTED FORM.—An appropriate Fed- 3 eral financial supervisory agency may adjust the 4 form of the disclosure statement prepared under 5 paragraph (1) if necessary, because of special cir- 6 cumstances, to protect the privacy of a borrower or 7 the competitive position of a regulated financial in- 8 stitution. 9 ‘‘(d) CENTRAL DATA DEPOSITORIES.—The Federal 10 Financial Institutions Examination Council, in consulta- 11 tion with the appropriate Federal financial supervisory 12 agencies, shall implement a system— 13 ‘‘(1) to allow the public to access online and in 14 a searchable format the data maintained under 15 paragraphs (1) through (4) of subsection (a); and 16 ‘‘(2) that ensures that personally identifiable fi- 17 nancial information is not disclosed to public. 18 ‘‘(e) LIMITATION.—An appropriate Federal financial 19 supervisory agency may not use the authorities of the ap- 20 propriate Federal financial supervisory agency under this 21 section to obtain a record from a regulated financial insti- 22 tution for the purpose of gathering or analyzing the per- 23 sonally identifiable financial information of a consumer.’’. 24 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00043 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 44 •S 3503 IS (c) AMENDMENT TO THE BANK HOLDING COMPANY 1 ACT OF 1956.—Section 4(k)(6) of the Bank Holding 2 Company Act of 1956 (12 U.S.C. 1843(k)(6)) is amended 3 to read as follows: 4 ‘‘(6) NOTICE AND OPPORTUNITY FOR COMMENT 5 REQUIRED.— 6 ‘‘(A) IN GENERAL.—No financial holding 7 company shall directly or indirectly acquire, and 8 no company that becomes a financial holding 9 company shall directly or indirectly acquire con- 10 trol of, any company in the United States, in- 11 cluding through merger, consolidation, or other 12 type of business combination, that is engaged in 13 activities permitted under this subsection or 14 subsection (n) or (o), unless— 15 ‘‘(i) the holding company has provided 16 notice to the Board, not later than 60 days 17 prior to the proposed acquisition or prior 18 to becoming a financial holding company, 19 and during that time period, or such 20 longer time period not exceeding an addi- 21 tional 60 days, as established by the 22 Board; 23 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00044 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 45 •S 3503 IS ‘‘(ii) the Board has provided public 1 notice and opportunity for comment for 2 not less than 60 days; and 3 ‘‘(iii) the Board has not issued a no- 4 tice disapproving the proposed acquisition 5 or retention. 6 ‘‘(B) FACTORS FOR CONSIDERATION.—In 7 reviewing any prior notice filed under this para- 8 graph, the Board shall— 9 ‘‘(i) consider the overall rating of the 10 financial holding company under the Com- 11 munity Reinvestment Act of 1977 (12 12 U.S.C. 2901 et seq.) and any improvement 13 plans submitted pursuant to that Act; 14 ‘‘(ii) provide opportunity for public 15 comment for a period of not less than 60 16 days; and 17 ‘‘(iii) consider changes in the commu- 18 nity reinvestment performance of the fi- 19 nancial holding company since the last rat- 20 ing under the Community Reinvestment 21 Act of 1977 (12 U.S.C. 2901 et seq.) by 22 the appropriate Federal financial super- 23 visory agency; 24 ‘‘(iv) require— 25 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00045 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 46 •S 3503 IS ‘‘(I) a demonstration that grant- 1 ing the application for a deposit facil- 2 ity is in the public interest, which 3 shall include submission to the appro- 4 priate Federal financial supervisory 5 agency of a community benefits plan; 6 ‘‘(II) that the institution consult 7 with community-based organizations 8 and other community stakeholders in 9 developing the community benefits 10 plan; and 11 ‘‘(III) a public hearing for any 12 bank that has received a ‘need-to-im- 13 prove’ or ‘sufficient’ grade in any as- 14 sessment area during the last exam- 15 ination under the Community Rein- 16 vestment Act of 1977 (12 U.S.C. 17 2901 et seq.).’’. 18 (d) TECHNICAL AND CONFORMING AMENDMENT.— 19 Section 10(c)(2)(H)(i) of the Home Owners’ Loan Act (12 20 U.S.C. 1467a(c)(2)(H)(i)) is amended by striking ‘‘section 21 804(c) of the Community Reinvestment Act of 1977 (12 22 U.S.C. 2903(c))’’ and inserting ‘‘section 804(f) of the 23 Community Reinvestment Act of 1977 (12 U.S.C. 24 2903(f))’’. 25 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00046 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 47 •S 3503 IS TITLE III—REMOVING BARRIERS 1 THAT ISOLATE COMMUNITIES 2 SEC. 301. EXPANDING RIGHTS UNDER THE FAIR HOUSING 3 ACT. 4 (a) IN GENERAL.—The Fair Housing Act (42 U.S.C. 5 3601 et seq.) is amended— 6 (1) in section 802 (42 U.S.C. 3602), by adding 7 at the end the following: 8 ‘‘(p) ‘Gender identity’ means the gender-related iden- 9 tity, appearance, or mannerisms or other gender-related 10 characteristics of an individual, with or without regard to 11 the individual’s designated sex at birth. 12 ‘‘(q) ‘Marital status’ has the meaning given the term 13 in section 202.2 of title 12, Code of Federal Regulations, 14 or any successor regulation. 15 ‘‘(r) ‘Sexual orientation’ means homosexuality, het- 16 erosexuality, or bisexuality. 17 ‘‘(s) ‘Source of income’ includes income for which 18 there is a reasonable expectation that the income will con- 19 tinue from— 20 ‘‘(1) a profession, occupation or job; 21 ‘‘(2) any government or private assistance, 22 grant, loan or rental assistance program, including 23 low-income housing assistance certificates and 24 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00047 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 48 •S 3503 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 (2) in section 804 (42 U.S.C. 3604)— 8 (A) by inserting ‘‘actual or perceived’’ be- 9 fore ‘‘race, color’’ each place that term appears; 10 and 11 (B) by inserting ‘‘sexual orientation, gen- 12 der identity, marital status, source of income,’’ 13 after ‘‘sex,’’ each place that term appears; 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 inserting ‘‘sexual orientation, gen- 19 der identity, marital status, source of income,’’ 20 after ‘‘sex,’’ each place that term appears; 21 (4) in section 806 (42 U.S.C. 3606)— 22 (A) by inserting ‘‘actual or perceived’’ be- 23 fore ‘‘race, color’’; and 24 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00048 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 49 •S 3503 IS (B) by inserting ‘‘sexual orientation, gen- 1 der identity, marital status, source of income,’’ 2 after ‘‘sex,’’; and 3 (5) in section 807 (42 U.S.C. 3607), by adding 4 at the end the following: 5 ‘‘(c) Nothing in this title limits the ability of the 6 owner of a dwelling owner to determine, in a commercially 7 reasonable and non-discriminatory manner, the ability of 8 a person to afford to purchase or rent the dwelling.’’. 9 (b) PREVENTION OF INTIMIDATION.—Section 901 of 10 the Civil Rights Act of 1968 (42 U.S.C. 3631) is amend- 11 ed— 12 (1) by inserting ‘‘actual or perceived’’ before 13 ‘‘race, color’’ each place that term appears; and 14 (2) by inserting ‘‘sexual orientation (as defined 15 in section 802), gender identity (as defined in sec- 16 tion 802), marital status (as defined in section 802), 17 source of income (as defined in section 802),’’ after 18 ‘‘sex,’’ each place that term appears. 19 SEC. 302. IMPROVING OUTCOMES IN HOUSING ASSISTANCE 20 PROGRAMS. 21 (a) INDIAN HOUSING ASSISTANCE.—Section 502 of 22 the Native American Housing Assistance and Self-Deter- 23 mination Act of 1996 (25 U.S.C. 4181) is amended by 24 adding at the end the following: 25 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00049 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 50 •S 3503 IS ‘‘(c) APPLICABILITY.—Subsections (a) and (b) shall 1 not apply with respect to tenant-based assistance provided 2 under section 8(o) of the United States Housing Act of 3 1937 (42 U.S.C. 1437f(o)).’’. 4 (b) SUPPLEMENTAL ADMINISTRATIVE FEE.—Section 5 8(q)(2)(B) of the United States Housing Act of 1937 (42 6 U.S.C. 1437f(q)(2)(B)) is amended by inserting ‘‘, includ- 7 ing the cost of assisting families with children that move 8 to lower poverty, higher opportunity neighborhoods (as de- 9 termined by the Secretary based on objective, evidence- 10 based criteria)’’ after ‘‘programs’’. 11 (c) REGIONAL PLANNING TO INCREASE ACCESS TO 12 HIGHER OPPORTUNITY AREAS.—Section 8(o) of the 13 United States Housing Act of 1937 (42 U.S.C. 1437f(o)) 14 is amended by adding at the end the following: 15 ‘‘(21) INCREASE ACCESS TO HIGHER OPPOR- 16 TUNITY AREAS.— 17 ‘‘(A) LOCATION ANALYSIS.— 18 ‘‘(i) IN GENERAL.—A public housing 19 agency that administers the program 20 under this subsection in a metropolitan 21 area shall— 22 ‘‘(I) analyze the locations where 23 the participants of the program of the 24 public housing agency live; and 25 VerDate Sep 11 2014 03:27 Oct 02, 2018 Jkt 079200 PO 00000 Frm 00050 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 51 •S 3503 IS ‘‘(II) based on the analysis de- 1 scribed in subclause (I), establish poli- 2 cies and practices to reduce disparities 3 and barriers to access to locations 4 throughout the metropolitan area that 5 evidence indicates are more likely to 6 improve outcomes for children or 7 adults. 8 ‘‘(ii) CONSIDERATIONS.—The location 9 analysis required under this subparagraph 10 shall— 11 ‘‘(I) consider separately the loca- 12 tions of families with children, house- 13 holds that include a person with dis- 14 abilities, and other groups protected 15 under the Fair Housing Act (42 16 U.S.C. 3601 et seq.); and 17 ‘‘(II) include an analysis of the 18 locations in relation to dwelling units 19 with rents that are potentially afford- 20 able to voucher holders and the likely 21 impact of key neighborhood attributes 22 on their well-being and long-term suc- 23 cess, based on Federal and available 24 local data. 25 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00051 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 52 •S 3503 IS ‘‘(iii) MAPPING TOOLS.—The Sec- 1 retary shall— 2 ‘‘(I) provide mapping tools and 3 other information necessary for a pub- 4 lic housing agency to perform the lo- 5 cation analysis under this subpara- 6 graph using the demographic data on 7 participating families submitted to the 8 Secretary under part 908 of title 24, 9 Code of Federal Regulations, or any 10 successor regulation; 11 ‘‘(II) publish a notice in the Fed- 12 eral Register, subject to public com- 13 ment, that specifies the data sources 14 and definitions that will be incor- 15 porated in each mapping tool required 16 under subclause (I); and 17 ‘‘(III) update the notice required 18 under subclause (II) as needed based 19 on changes in the availability of rel- 20 evant data or evidence of neighbor- 21 hood attributes likely to impact the 22 well-being and long-term success of 23 participants in the program under this 24 subsection. 25 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00052 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 53 •S 3503 IS ‘‘(iv) FREQUENCY AND AVAIL- 1 ABILITY.—The location analysis required 2 under this subparagraph shall— 3 ‘‘(I) be performed by each public 4 housing agency described in clause (i) 5 not less frequently than once every 5 6 years; 7 ‘‘(II) be performed by all public 8 housing agencies in a metropolitan 9 area in the same year, as determined 10 by the Secretary; and 11 ‘‘(III) be made available to the 12 public in a manner that protects the 13 privacy of program participants. 14 ‘‘(B) REGIONAL POLICIES TO INCREASE 15 ACCESS TO HIGHER OPPORTUNITY NEIGHBOR- 16 HOODS.—Each public housing agency described 17 in subparagraph (A)(i) shall— 18 ‘‘(i) consult with other such public 19 housing agencies in the same metropolitan 20 area, or smaller regional area approved by 21 the Secretary, about the possible barriers 22 and other reasons for the disparities iden- 23 tified in the location analysis required 24 under subparagraph (A); 25 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00053 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 54 •S 3503 IS ‘‘(ii) identify policies or practices that 1 those public housing agencies could adopt 2 individually or in collaboration, or other 3 strategies that recipients of grants or other 4 funding from the Secretary could adopt, to 5 reduce the barriers and disparities and in- 6 crease the share of families with children 7 and other demographic groups using 8 vouchers in higher-opportunity neighbor- 9 hoods in the metropolitan area or region; 10 and 11 ‘‘(iii) include in the administrative 12 plan required under section 982.54 of title 13 24, Code of Federal Regulations, or any 14 successor regulation, the policies that the 15 public housing agency has adopted under 16 this paragraph. 17 ‘‘(C) ASSESSMENT.—The Secretary shall 18 include public housing agency performance in 19 achieving the goal described in subparagraph 20 (A)(i)(II) in the periodic assessment of agency 21 performance in managing the program under 22 this subsection required under part 985 of title 23 24, Code of Federal Regulations, or any suc- 24 cessor regulation.’’. 25 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00054 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 55 •S 3503 IS (d) REQUIRED REGULATORY CHANGES TO PUBLIC 1 HOUSING AGENCY CONSORTIA.— 2 (1) DEFINITIONS.—In this subsection: 3 (A) MOVING TO WORK DEMONSTRATION 4 PROGRAM.—The term ‘‘Moving to Work dem- 5 onstration program’’ means the program estab- 6 lished under section 204 of the Departments of 7 Veterans Affairs and Housing and Urban De- 8 velopment, and Independent Agencies Appro- 9 priations Act, 1996 (Public Law 104–134; 110 10 Stat. 1321–281). 11 (B) PUBLIC HOUSING AGENCY.—The term 12 ‘‘public housing agency’’ has the meaning given 13 the term in section 3(b)(6) of the United States 14 Housing Act of 1937 (42 U.S.C. 1437a(b)(6)). 15 (2) REQUIREMENT.—Not later than 1 year 16 after the date of enactment of this Act, the Sec- 17 retary of Housing and Urban Development shall es- 18 tablish policies and procedures that— 19 (A) enable public housing agencies that 20 elect to operate in consortia under section 13(a) 21 of the United States Housing Act of 1937 (42 22 U.S.C. 1437k(a)), excluding public housing 23 agencies participating in the Moving to Work 24 demonstration program— 25 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00055 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 56 •S 3503 IS (i) to consolidate their funding con- 1 tracts for assistance provided under section 2 8(o) of such Act (42 U.S.C. 1437f(o)) into 3 a single contract; 4 (ii) to consolidate their funding con- 5 tracts for assistance provided under sub- 6 sections (d) and (e) of section 9 of such 7 Act 42 U.S.C. 1437g); or 8 (iii) to exercise the consolidation op- 9 tions under each of clauses (i) and (ii); and 10 (B) enable public housing agencies to form 11 partial consortia under such section 13(a) (42 12 U.S.C. 1437k(a)) that consolidate administra- 13 tion of certain aspects of their housing pro- 14 grams to increase access to higher-opportunity 15 areas or for other purposes, subject to such re- 16 quirements as the Secretary may establish. 17 (3) MOVING TO WORK AGENCIES.—Any flexi- 18 bility or waiver applicable to the Moving to Work 19 demonstration program shall not apply to any activi- 20 ties or funds administered through a partial con- 21 sortia formed under paragraph (2)(B) by 1 or more 22 public housing agencies participating in the Moving 23 to Work demonstration program. 24 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00056 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 57 •S 3503 IS TITLE IV—ESTATE TAX REFORM 1 SEC. 401. AMENDMENT TO INTERNAL REVENUE CODE OF 2 1986. 3 Except as otherwise expressly provided, whenever in 4 this title an amendment or repeal is expressed in terms 5 of an amendment to, or repeal of, a section or other provi- 6 sion, the reference shall be considered to be made to a 7 section or other provision of the Internal Revenue Code 8 of 1986. 9 SEC. 402. RATE ADJUSTMENT. 10 (a) INCREASE IN MAXIMUM ESTATE TAX RATES.— 11 The table contained in section 2001(c) is amended by 12 striking the last row and inserting the following: 13 Over $1,000,000 ............................ $345,800, plus 55 percent of the ex- cess of such amount over $1,000,000. Over $13,000,000 .......................... $6,945,800, plus 60 percent of the excess of such amount over $13,000,000. Over $93,000,000 .......................... $54,945,800, plus 65 percent of the excess of such amount over $93,000,000. (b) REDUCTION OF BASIC EXCLUSION AMOUNT.— 14 Paragraph (3) of section 2010(c) is amended to read as 15 follows: 16 ‘‘(3) BASIC EXCLUSION AMOUNT.—For pur- 17 poses of this subsection, the basic exclusion amount 18 is $3,500,000.’’. 19 (c) SURTAX ON BILLION DOLLAR ESTATES.—Section 20 2001 is amended— 21 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00057 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 58 •S 3503 IS (1) in subsection (b), by striking ‘‘The tax’’ and 1 inserting ‘‘Subject to subsection (h), the tax’’, and 2 (2) by adding at the end the following new sub- 3 section: 4 ‘‘(h) SURTAX ON BILLION DOLLAR ESTATES.— 5 ‘‘(1) IN GENERAL.—In the case of a taxable es- 6 tate for which the applicable amount is in excess of 7 $1,000,000,000, the tax determined under sub- 8 section (b) shall be increased by an amount equal to 9 10 percent of such applicable amount. 10 ‘‘(2) APPLICABLE AMOUNT.—For purposes of 11 this subsection, the applicable amount shall be equal 12 to the sum of the amounts under subparagraphs (A) 13 and (B) of paragraph (1) of subsection (b) for the 14 taxable estate.’’. 15 SEC. 403. REQUIRED MINIMUM 10-YEAR TERM, ETC., FOR 16 GRANTOR RETAINED ANNUITY TRUSTS. 17 (a) IN GENERAL.—Subsection (b) of section 2702 is 18 amended— 19 (1) by redesignating paragraphs (1), (2), and 20 (3) as subparagraphs (A), (B), and (C), respectively, 21 and by moving such subparagraphs (as so redesig- 22 nated) 2 ems to the right; 23 (2) by striking ‘‘For purposes of’’ and inserting 24 the following: 25 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00058 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 59 •S 3503 IS ‘‘(1) IN GENERAL.—For purposes of’’; 1 (3) by striking ‘‘paragraph (1) or (2)’’ in para- 2 graph (1)(C) (as so redesignated) and inserting 3 ‘‘subparagraph (A) or (B)’’; and 4 (4) by adding at the end the following new 5 paragraph: 6 ‘‘(2) ADDITIONAL REQUIREMENTS WITH RE- 7 SPECT TO GRANTOR RETAINED ANNUITIES.—For 8 purposes of subsection (a), in the case of an interest 9 described in paragraph (1)(A) (determined without 10 regard to this paragraph) which is retained by the 11 transferor, such interest shall be treated as de- 12 scribed in such paragraph only if— 13 ‘‘(A) the right to receive the fixed amounts 14 referred to in such paragraph is for a term of 15 not less than 10 years, 16 ‘‘(B) such fixed amounts, when determined 17 on an annual basis, do not decrease relative to 18 any prior year during the first 10 years of the 19 term referred to in subparagraph (A), and 20 ‘‘(C) the remainder interest has a value 21 equal to or greater than 10 percent of the value 22 of the assets transferred to the trust, deter- 23 mined as of the time of the transfer.’’. 24 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00059 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 60 •S 3503 IS (b) EFFECTIVE DATE.—The amendments made by 1 this section shall apply to transfers made after the date 2 of the enactment of this Act. 3 SEC. 404. CERTAIN TRANSFER TAX RULES APPLICABLE TO 4 GRANTOR TRUSTS. 5 (a) IN GENERAL.—Subtitle B is amended by adding 6 at the end the following new chapter: 7 ‘‘CHAPTER 16—SPECIAL RULES FOR 8 GRANTOR TRUSTS 9 ‘‘Sec. 2901. Application of transfer taxes. ‘‘SEC. 2901. APPLICATION OF TRANSFER TAXES. 10 ‘‘(a) IN GENERAL.—In the case of any portion of a 11 trust to which this section applies— 12 ‘‘(1) the value of the gross estate of the de- 13 ceased deemed owner of such portion shall include 14 all assets attributable to that portion at the time of 15 the death of such owner, 16 ‘‘(2) any distribution from such portion to one 17 or more beneficiaries during the life of the deemed 18 owner of such portion shall be treated as a transfer 19 by gift for purposes of chapter 12, and 20 ‘‘(3) if at any time during the life of the 21 deemed owner of such portion, such owner ceases to 22 be treated as the owner of such portion under sub- 23 part E of part 1 of subchapter J of chapter 1, all 24 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00060 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 61 •S 3503 IS assets attributable to such portion at such time shall 1 be treated for purposes of chapter 12 as a transfer 2 by gift made by the deemed owner. 3 ‘‘(b) PORTION OF TRUST TO WHICH SECTION AP- 4 PLIES.—This section shall apply to— 5 ‘‘(1) the portion of a trust with respect to 6 which the grantor is the deemed owner, and 7 ‘‘(2) the portion of the trust to which a person 8 who is not the grantor is a deemed owner by reason 9 of the rules of subpart E of part 1 of subchapter J 10 of chapter 1, and such deemed owner engages in a 11 sale, exchange, or comparable transaction with the 12 trust that is disregarded for purposes of subtitle A. 13 For purposes of paragraph (2), the portion of the trust 14 described with respect to a transaction is the portion of 15 the trust attributable to the property received by the trust 16 in such transaction, including all retained income there- 17 from, appreciation thereon, and reinvestments thereof, net 18 of the amount of consideration received by the deemed 19 owner in such transaction. 20 ‘‘(c) EXCEPTIONS.—This section shall not apply to— 21 ‘‘(1) any trust that is includible in the gross es- 22 tate of the deemed owner (without regard to sub- 23 section (a)(1)), and 24 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00061 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 62 •S 3503 IS ‘‘(2) any other type of trust that the Secretary 1 determines by regulations or other guidance does not 2 have as a significant purpose the avoidance of trans- 3 fer taxes. 4 ‘‘(d) DEEMED OWNER DEFINED.—For purposes of 5 this section, the term ‘deemed owner’ means any person 6 who is treated as the owner of a portion of a trust under 7 subpart E of part 1 of subchapter J of chapter 1. 8 ‘‘(e) REDUCTION FOR TAXABLE GIFTS TO TRUST 9 MADE BY OWNER.—The amount to which subsection (a) 10 applies shall be reduced by the value of any transfer by 11 gift by the deemed owner to the trust previously taken 12 into account by the deemed owner under chapter 12. 13 ‘‘(f) LIABILITY FOR PAYMENT OF TAX.—Any tax im- 14 posed pursuant to subsection (a) shall be a liability of the 15 trust.’’. 16 (b) CLERICAL AMENDMENT.—The table of chapters 17 for subtitle B is amended by adding at the end the fol- 18 lowing new item: 19 ‘‘CHAPTER 16. SPECIAL RULES FOR GRANTOR TRUSTS’’. (c) EFFECTIVE DATE.—The amendments made by 20 this section shall apply— 21 (1) to trusts created on or after the date of the 22 enactment of this Act; 23 (2) to any portion of a trust established before 24 the date of the enactment of this Act which is attrib- 25 VerDate Sep 11 2014 03:27 Oct 02, 2018 Jkt 079200 PO 00000 Frm 00062 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 63 •S 3503 IS utable to a contribution made on or after such date; 1 and 2 (3) to any portion of a trust established before 3 the date of the enactment of this Act to which sec- 4 tion 2901(a) of the Internal Revenue Code of 1986 5 (as added by subsection (a)) applies by reason of a 6 transaction described in section 2901(b)(2) of such 7 Code on or after such date. 8 SEC. 405. ELIMINATION OF GENERATION-SKIPPING TRANS- 9 FER TAX EXEMPTION FOR CERTAIN TRUSTS. 10 (a) IN GENERAL.—Section 2642 is amended by add- 11 ing at the end the following new subsection: 12 ‘‘(h) ELIMINATION OF GST EXEMPTION FOR CER- 13 TAIN TRUSTS.— 14 ‘‘(1) IN GENERAL.— 15 ‘‘(A) TRANSFERS FROM NON-QUALIFYING 16 TRUSTS.—In the case of any generation-skip- 17 ping transfer made from a trust that is not a 18 qualifying trust, the inclusion ratio with respect 19 to any property transferred in such transfer 20 shall be 1. 21 ‘‘(B) QUALIFYING TRUST.—For purposes 22 of this subsection, the term ‘qualifying trust’ 23 means a trust for which the date of termination 24 VerDate Sep 11 2014 03:27 Oct 02, 2018 Jkt 079200 PO 00000 Frm 00063 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 64 •S 3503 IS of such trust is not greater than 50 years after 1 the date on which such trust is created. 2 ‘‘(2) TRUSTS CREATED BEFORE DATE OF EN- 3 ACTMENT.—In the case of any trust created before 4 the date of the enactment of this subsection, such 5 trust shall be deemed to be a qualifying trust for a 6 period of 50 years after the date of the enactment 7 of this subsection. 8 ‘‘(3) DATE OF CREATION OF CERTAIN DEEMED 9 SEPARATE TRUSTS.—In the case of any portion of a 10 trust which is treated as a separate trust under sec- 11 tion 2654(b)(1), such separate trust shall be treated 12 as created on the date of the first transfer described 13 in such section with respect to such separate trust. 14 ‘‘(4) DATE OF CREATION OF POUR-OVER 15 TRUSTS.—In the case of any generation-skipping 16 transfer of property which involves the transfer of 17 property from 1 trust to another trust, the date of 18 the creation of the transferee trust shall be treated 19 as being the earlier of— 20 ‘‘(A) the date of the creation of such trans- 21 feree trust, or 22 ‘‘(B) the date of the creation of the trans- 23 feror trust. 24 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00064 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 65 •S 3503 IS In the case of multiple transfers to which the pre- 1 ceding sentence applies, the date of the creation of 2 the transferor trust shall be determined under the 3 preceding sentence before the application of the pre- 4 ceding sentence to determine the date of the creation 5 of the transferee trust. 6 ‘‘(5) REGULATIONS.—The Secretary may pre- 7 scribe such regulations or other guidance as may be 8 necessary or appropriate to carry out this sub- 9 section.’’. 10 (b) EFFECTIVE DATE.—The amendments made by 11 this section shall take effect on the date of the enactment 12 of this Act. 13 SEC. 406. SIMPLIFYING GIFT TAX EXCLUSION FOR ANNUAL 14 GIFTS. 15 (a) IN GENERAL.—Paragraph (1) of section 2503(b) 16 is amended to read as follows: 17 ‘‘(1) IN GENERAL.— 18 ‘‘(A) LIMIT PER DONEE.—In the case of 19 gifts made to any person by the donor during 20 the calendar year, the first $10,000 of such 21 gifts to such person shall not, for purposes of 22 subsection (a), be included in the total amount 23 of gifts made during such year. 24 ‘‘(B) CUMULATIVE LIMIT PER DONOR.— 25 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00065 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 66 •S 3503 IS ‘‘(i) IN GENERAL.—The aggregate 1 amount excluded under subparagraph (A) 2 with respect to all transfers described in 3 clause (ii) made by the donor during the 4 calendar year shall not exceed twice the 5 dollar amount in effect under such sub- 6 paragraph for such calendar year. 7 ‘‘(ii) TRANSFERS SUBJECT TO LIMITA- 8 TION.—The transfers described in this 9 clause are— 10 ‘‘(I) a transfer in trust, 11 ‘‘(II) a transfer of an interest in 12 a passthrough entity, 13 ‘‘(III) a transfer of an interest 14 subject to a prohibition on sale, and 15 ‘‘(IV) any other transfer of prop- 16 erty that, without regard to with- 17 drawal, put, or other such rights in 18 the donee, cannot immediately be liq- 19 uidated by the donee.’’. 20 (b) CONFORMING AMENDMENT.—Section 2503 is 21 amended by striking subsection (c). 22 (c) REGULATIONS.—The Secretary of the Treasury, 23 or the Secretary of the Treasury’s delegate, may prescribe 24 such regulations or other guidance as may be necessary 25 VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00066 Fmt 6652 Sfmt 6201 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS 67 •S 3503 IS or appropriate to carry out the amendments made by this 1 section. 2 (d) EFFECTIVE DATE.—The amendments made by 3 this section shall apply to any calendar year beginning 4 after the date of the enactment of this Act. 5 Æ VerDate Sep 11 2014 22:48 Oct 01, 2018 Jkt 089200 PO 00000 Frm 00067 Fmt 6652 Sfmt 6301 E:\BILLS\S3503.IS S3503 daltland on DSKBBV9HB2PROD with BILLS