American Housing and Economic Mobility Act of 2021
This bill addresses housing affordability and availability, makes certain changes to the estate and gift taxes, and contains other related provisions.
The Department of Housing and Urban Development shall provide grants to (1) state and local governments that remove unnecessary barriers to building affordable units, (2) states to assist borrowers who have negative equity in their homes, (3) state housing finance agencies to construct or acquire affordable rental housing and prevent tenant displacement and harassment, and (4) eligible individuals (generally, lower income individuals who resided in low-income or historically racially segregated areas) to help them purchase their first homes.
The bill provides funding through FY2031 for the first-time homeowner grant program established by the bill, through FY2022 for the affordable rental housing construction program established by the bill, and through FY2022 for specified existing rural housing programs.
The bill also expands fair housing protections to prohibit discrimination based on sexual orientation, gender identity, marital status, source of income, veteran status, or an individual's perceived membership in a protected class (e.g., an individual's perceived race or sex).
Additionally, the bill modifies the estate tax in various ways, including by reducing the number of brackets to three, increasing the tax rates, and reducing the basic exemption amount. The bill also modifies provisions related to gift taxes and transfer taxes.
[Congressional Bills 117th Congress]
[From the U.S. Government Publishing Office]
[H.R. 2768 Introduced in House (IH)]
<DOC>
117th CONGRESS
1st Session
H. R. 2768
To make housing more affordable, and for other purposes.
_______________________________________________________________________
IN THE HOUSE OF REPRESENTATIVES
April 22, 2021
Mr. Cleaver (for himself, Mr. Khanna, Ms. Norton, Mr. Garcia of
Illinois, Mr. Cohen, Ms. Schakowsky, Ms. Pressley, Ms. Moore of
Wisconsin, Ms. Bonamici, and Ms. Lee of California) introduced the
following bill; which was referred to the Committee on Financial
Services, and in addition to the Committees on the Judiciary, Veterans'
Affairs, and Ways and Means, for a period to be subsequently determined
by the Speaker, in each case for consideration of such provisions as
fall within the jurisdiction of the committee concerned
_______________________________________________________________________
A BILL
To make housing more affordable, and for other purposes.
Be it enacted by the Senate and House of Representatives of the
United States of America in Congress assembled,
SECTION 1. SHORT TITLE; TABLE OF CONTENTS.
(a) Short Title.--This Act may be cited as the ``American Housing
and Economic Mobility Act of 2021''.
(b) Table of Contents.--The table of contents for this Act is as
follows:
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-performing loans.
TITLE II--TAKING THE FIRST STEPS TO REVERSE THE LEGACY OF HOUSING
DISCRIMINATION AND GOVERNMENT NEGLIGENCE
Sec. 201. Down payment assistance program for communities formerly
segregated 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 housing 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 MORE AFFORDABLE
SEC. 101. LOCAL HOUSING INNOVATION GRANTS.
(a) Definitions.--In this section:
(1) Elementary school; secondary school.--The terms
``elementary school'' and ``secondary school'' have the
meanings given those terms in section 8101 of the Elementary
and Secondary Education Act of 1965 (20 U.S.C. 7801).
(2) Eligible entity.--The term ``eligible entity'' means--
(A) a State; or
(B) a unit of general local government.
(3) Institution of higher education.--The term
``institution of higher education'' has the meaning given the
term in section 101 of the Higher Education Act of 1965 (20
U.S.C. 1001).
(4) Metropolitan area; state; unit of general local
government.--The terms ``metropolitan area'', ``State'', and
``unit of general local government'' have the meanings given
those terms in section 102 of the Housing and Community
Development Act of 1974 (42 U.S.C. 5302).
(5) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(b) Establishment.--Not later than 1 year after the date of
enactment of this Act, the Secretary shall establish a program to make
grants to eligible entities that--
(1) reform local land use restrictions to bring down the
costs of producing affordable housing; and
(2) remove unnecessary barriers to building affordable
units in their communities.
(c) Eligible Activities.--An eligible entity receiving a grant
under this section may use funds to--
(1) carry out any of the activities described in section
105 of the Housing and Community Development Act of 1974 (42
U.S.C. 5305);
(2) carry out any of the activities permitted under the
program for national infrastructure investments (commonly known
as the ``Better Utilizing Investments to Leverage Development
(BUILD) discretionary grant program'') authorized under the
heading ``national infrastructure investments'' under the
heading ``Office of the Secretary'' in title I of division L of
the Consolidated Appropriations Act, 2018 (Public Law 115-141;
132 Stat. 972) or a subsequent appropriations Act; or
(3) modernize, renovate, or repair facilities used by
public elementary schools, public secondary schools, and public
institutions of higher education, including modernization,
renovation, and repairs that--
(A) promote physical, sensory, and environmental
accessibility; and
(B) are consistent with a recognized green building
rating system.
(d) Application.--
(1) In general.--An eligible entity desiring a grant under
this section shall submit to the Secretary an application that
demonstrates that the eligible entity has carried out, or is in
the process of carrying out, initiatives that facilitate the
expansion of the supply of well-located affordable housing.
(2) Activities.--Initiatives that meet the criteria
described in paragraph (1)--
(A) include--
(i) establishing ``by-right'' development,
which allows jurisdictions to administratively
approve new developments that are consistent
with their zoning code;
(ii) revising or eliminating off-street
parking requirements to reduce the cost of
housing production;
(iii) instituting measures that incentivize
owners of vacant land to redevelop the space
into affordable housing or other productive
uses;
(iv) revising minimum lot size requirements
and bans or limits on multifamily construction
to allow for denser and more affordable
development;
(v) instituting incentives to promote dense
development, such as density bonuses;
(vi) passing inclusionary zoning ordinances
that require a portion of newly developed units
to be reserved for low- and moderate-income
renters or homebuyers;
(vii) streamlining regulatory requirements
and shortening processes, reforming zoning
codes, or other initiatives that reduce
barriers to housing supply elasticity and
affordability;
(viii) allowing accessory dwelling units;
(ix) using local tax incentives to promote
development of affordable housing; and
(x) implementing measures that protect
tenants from harassment and displacement,
including--
(I) providing access to counsel for
tenants facing eviction;
(II) the prohibition of eviction
except for just cause;
(III) measures intended to prevent
or mitigate sudden increases in rents;
(IV) the repeal of laws that
prevent localities from implementing a
measure described in subclause (I),
(II), or (III);
(V) protections against
constructive eviction;
(VI) tenant right-to-organize laws;
(VII) a cause of action for tenants
to sue landlords who threaten or begin
an illegal eviction; and
(VIII) landlord-tenant mediation or
other non-eviction diversion programs;
and
(B) do not include activities that alter ordinances
that govern wage and hour laws, family and medical
leave laws, health and safety requirements, prevailing
wage laws, or protections for workers' health and
safety, anti-discrimination, and right to organize.
(3) Relation to consolidated plan.--An eligible entity
shall include in an application submitted under paragraph (1) a
description of how the planning and development of eligible
activities described in subsection (c) may advance an
objective, or an aspect of an objective, included in the
comprehensive housing affordability strategy and community
development plan of the eligible entity under part 91 of title
24, Code of Federal Regulations, or any successor regulation
(commonly referred to as a ``consolidated plan'').
(e) Labor Laws.--
(1) In general.--All laborers and mechanics employed by
contractors or subcontractors in the performance of
construction work financed in whole or in part with a grant
received under this section shall be paid wages at rates not
less than those prevailing on similar construction in the
locality, as determined by the Secretary of Labor in accordance
with subchapter IV of chapter 31 of title 40, United States
Code (commonly known as the ``Davis-Bacon Act'').
(2) Authority and functions.--With respect to the labor
standards specified in paragraph (1), the Secretary of Labor
shall have the authority and functions set forth in
Reorganization Plan Numbered 14 of 1950 (64 Stat. 1267; 5
U.S.C. App.) and section 3145 of title 40, United States Code.
(f) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $2,000,000,000 for each of
fiscal years 2022 through 2026.
SEC. 102. INVESTING IN AFFORDABLE HOUSING INFRASTRUCTURE.
(a) Housing Trust Fund.--Section 1338(a) of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C.
4568(a)) is amended by adding at the end the following:
``(3) Authorization of appropriations.--There is authorized
to be appropriated to the Housing Trust Fund $44,500,000,000
for each of fiscal years 2022 through 2031.''.
(b) Capital Magnet Fund.--Section 1339 of the Federal Housing
Enterprises Financial Safety and Soundness Act of 1992 (12 U.S.C. 4569)
is amended by adding at the end the following:
``(k) Authorization of Appropriations.--There is authorized to be
appropriated to the Capital Magnet Fund $2,500,000,000 for each of
fiscal years 2022 through 2031.''.
(c) Public Housing Capital Fund.--Section 9(c)(2)(A) of the United
States Housing Act of 1937 (42 U.S.C. 1437g(c)(2)(A)) is amended to
read as follows:
``(A) Capital fund.--For allocations of assistance
from the Capital Fund, $3,592,000,000 for fiscal year
2022.''.
(d) Indian Housing Block Grant Program.--Section 108 of the Native
American Housing Assistance and Self-Determination Act of 1996 (25
U.S.C. 4117) is amended--
(1) by striking ``such sums as may be necessary for each of
fiscal years 2009 through 2013'' and inserting ``$2,500,000,000
for fiscal year 2022 and such sums as may be necessary for each
of fiscal years 2023 through 2031''; and
(2) by striking the second sentence.
(e) Native Hawaiian Housing Block Grant Program.--Section 824 of
the Native American Housing Assistance and Self-Determination Act of
1996 (25 U.S.C. 4243) is amended by striking ``such sums as may be
necessary for each of fiscal years 2001, 2002, 2003, 2004, and 2005''
and inserting ``20,000,000 for fiscal year 2022 and such sums as may be
necessary for each of fiscal years 2023 through 2031''.
(f) Rural Housing Programs.--Out of funds in the Treasury not
otherwise appropriated, there is appropriated for fiscal year 2022--
(1) to provide direct loans under section 502 of the
Housing Act of 1949 (42 U.S.C. 1472), $140,000,000;
(2) to provide assistance under section 514 of such Act (42
U.S.C. 1484), $28,000,000;
(3) to provide assistance under section 515 of such Act (42
U.S.C. 1485), $140,000,000;
(4) to provide assistance under section 516 of such Act (42
U.S.C. 1486), $20,000,000;
(5) to provide grants under section 523 of such Act (42
U.S.C. 1490c), $75,000,000; and
(6) to provide funding to carry out the Multifamily
Preservation and Revitalization Demonstration Program of the
Rural Housing Service (as authorized under sections 514, 515,
and 516 of such Act (42 U.S.C. 1484, 1485, 1486)),
$120,000,000.
(g) Middle Class Housing Emergency Fund.--
(1) Definitions.--In this subsection--
(A) the term ``affordable rental housing unit''
means a unit for which monthly rent is 30 percent or
less than the monthly area median income; and
(B) the term ``State'' has the meaning given the
term in section 3(b)(7) of the United States Housing
Act of 1937 (42 U.S.C. 1437a(b)(7)).
(2) Establishment.--The Secretary of Housing and Urban
Development shall establish and manage a fund, to be known as
the ``Middle Class Housing Emergency Fund'', which shall be
funded with any amounts as may be appropriated, transferred, or
credited to the Fund under any provision law.
(3) Grants.--From amounts available in the fund established
under paragraph (2), the Secretary of Housing and Urban
Development shall award grants on a competitive basis to State
housing finance agencies located in a State in which--
(A) there is a shortage of affordable rental
housing units available to individuals with an income
that is at or below the area median income and median
rents have risen on average over the preceding 5 years
substantially faster than the area median income; or
(B) there is a shortage of housing units available
for sale that are affordable to individuals with an
income that is at or below the area median income and
median home prices have risen on average over the
preceding 5 years substantially faster than the area
median income.
(4) Use of funds.--Grants received under this subsection
shall be used to fund--
(A) the construction or acquisition, by nonprofit
organizations, State or local agencies, special-purpose
units of local government, resident councils organized
to acquire housing, and other qualified purchasers (as
defined by the Secretary), of rental housing units or
units for purchase that are affordable to residents
making less than 120 percent of the area median income;
and
(B) measures to prevent tenant displacement and
harassment, including--
(i) the provision of legal advice and
representation for tenants facing eviction;
(ii) enforcement of anti-harassment laws;
(iii) emergency rental assistance; and
(iv) other measures as specified by the
Secretary of Housing and Urban Development.
(5) Labor laws.--
(A) In general.--All laborers and mechanics
employed by contractors or subcontractors in the
performance of construction work financed in whole or
in part with a grant received under this subsection
shall be paid wages at rates not less than those
prevailing on similar construction in the locality as
determined by the Secretary of Labor in accordance with
subchapter IV of chapter 31 of title 40, United States
Code (commonly known as the ``Davis-Bacon Act'').
(B) Authority and functions.--With respect to the
labor standards specified in subparagraph (A), the
Secretary of Labor shall have the authority and
functions set forth in Reorganization Plan Numbered 14
of 1950 (64 Stat. 1267; 5 U.S.C. App.) and section 3145
of title 40, United States Code.
(6) Regulations.--The Secretary of Housing and Urban
Development shall promulgate regulations to carry out this
subsection that include--
(A) the metrics that the Secretary will use to
determine eligibility for a grant under this
subsection;
(B) a requirement that grantees and subgrantees
consult with impacted communities in policymaking and
planning for the construction or acquisition of housing
units as described in paragraph 4(A); and
(C) a requirement that all housing units
constructed or acquired using grants awarded under the
subsection are affordable to residents making less than
120 percent of the area median income in perpetuity.
(7) Appropriations.--Out of funds in the Treasury not
otherwise appropriated, there is appropriated to the fund
established under this subsection $4,000,000,000 for fiscal
year 2022.
SEC. 103. CONDITIONS FOR THE SALE OF REAL ESTATE-OWNED PROPERTIES AND
NON-PERFORMING LOANS.
(a) Findings.--Congress finds that--
(1) the Federal Housing Administration, the Federal
National Mortgage Association, and the Federal Home Loan
Mortgage Corporation provide critical homeownership
opportunities that greatly benefit individuals, families, and
communities; and
(2) it is the purpose of this section to--
(A) preserve owner-occupied homes with mortgages
insured by the Federal Housing Administration or
purchased by the Federal National Mortgage Association
or the Federal Home Loan Mortgage Corporation for
continued use as owner-occupied homes; and
(B) direct that, upon the sale of those properties
or transfer of those mortgages, certain percentages of
those properties are sold to low- and moderate-income
homeowners.
(b) Loans Insured by the Federal Housing Administration.--Title II
of the National Housing Act (12 U.S.C. 1707 et seq.) is amended by
adding at the end the following:
``SEC. 259. SALE OF REAL ESTATE-OWNED PROPERTIES.
``(a) Definitions.--In this section--
``(1) the term `Claim Without Conveyance of Title program'
means the program of the Federal Housing Administration carried
out under section 203.368 of title 24, Code of Federal
Regulations, or any successor regulation; and
``(2) the term `community partner' has the meaning given
the term `nonprofit organization' in section 229 of the Low-
Income Housing Preservation and Resident Homeownership Act of
1990 (12 U.S.C. 4119).
``(b) Requirement.--Not later than 1 year after the date of
enactment of this section, the Secretary shall develop programs within
the Federal Housing Administration to ensure that not less than 75
percent of the single-family residential properties conveyed to the
Federal Housing Administration after foreclosure or conveyed to third
parties under the Claim Without Conveyance of Title program are sold--
``(1) directly to an owner-occupant; or
``(2) to community partners that will--
``(A) rehabilitate or develop the property; and
``(B) sell the property to an owner-occupant.
``(c) Guidelines.--Not later than 1 year after the date of
enactment of this section, the Secretary shall develop guidelines for
the Claim Without Conveyance of Title program that provide an exclusive
listing period during which only eligible Governmental Entities, HUD-
approved Nonprofit Organizations, and Owner-Occupant Buyers may submit
bids.
``(d) Anti-predatory Feature.--Unless the Secretary provides prior
approval, the Secretary shall prohibit any purchaser of a real estate-
owned property of the Federal Housing Administration from reselling the
property within 15 years of purchase using a land installment contract
or through any other mechanism that does not transfer title to the
buyer at the time of sale.
``SEC. 260. SALE OF NON-PERFORMING LOANS.
``(a) Definition.--In this section, the term `community partner'
has the meaning given the term in section 259.
``(b) Restriction on Sale or Transfer.--Except as provided in this
section, the Secretary may not sell or transfer any mortgage insured
under this title that is secured by a single-family residential
property (in this section referred to as a `covered mortgage').
``(c) Conditions for Sale or Transfer.--
``(1) In general.--The Secretary--
``(A) may sell or transfer a covered mortgage only
if--
``(i) the capital level of the Fund is
substantially below the capital ratio required
under section 205(f)(2);
``(ii) the Secretary certifies that other
reasonable measures are not available to
restore the Fund to that capital ratio; and
``(iii) the Secretary complies with
paragraph (2)(C), if applicable; and
``(B) may sell or transfer only such covered
mortgages as are necessary to assist in restoration of
that capital ratio.
``(2) Requirements for the secretary.--
``(A) In general.--If the Secretary intends to sell
or transfer a covered mortgage, the Secretary shall
provide the current borrower and all owners of record
of the property securing the covered mortgage, or
require that the current borrower and owners of record
be provided, a separate written notice of the intent to
sell the covered mortgage that--
``(i) is mailed via certified and first
class mail not less than 90 days before the
date on which the loan is included in any
proposed sale; and
``(ii) includes--
``(I) a description of the loss
mitigation options of the Federal
Housing Administration that are
available to borrowers in financial
distress and the obligation of
servicers to consider borrowers in
default for those options;
``(II) a description of the actions
that the servicer of the loan has taken
to review and implement those options
for the borrower; and
``(III) a description of the
procedures the borrower may use to
contest with the Secretary the
compliance by the servicer with that
obligation.
``(B) Judicial review.--The determination of the
Secretary to authorize the sale of a mortgage insured
under this title shall be reviewable under chapter 7 of
title 5, United States Code, for abuse of discretion
and arbitrary and capricious agency action.
``(C) Auctions.--The Secretary may not sell any
covered mortgage through any type of non-performing
loan sale auction program until the Secretary issues
rules, through the notice and comment rule making
procedures under section 553 of title 5, United States
Code, that address essential aspects of any non-
performing loan sale program, including--
``(i) the method of selection of loans for
sale;
``(ii) notice to borrowers prior to
inclusion of the loan in a sale; and
``(iii) review of loss mitigation status
prior to the sale, selection of eligible
bidders, loss mitigation guidelines applicable
to loan purchasers, and reporting requirements
for purchasers.
``(3) Certification requirement for lenders and
servicers.--
``(A) Certification.--As a condition to payment of
an insurance claim under this title in connection with
any non-performing loan sale, the lender or servicer of
the loan shall provide the Secretary and the borrower
with written certification of the loss mitigation
review contained in the FHA Single Family Housing
Policy Handbook 4000.1, or any successor handbook.
``(B) False statements.--
``(i) In general.--Any false statement
provided in a certification described in
subparagraph (A) shall be a basis for--
``(I) recovery by the Secretary of
any amounts paid under the insurance
claim and any other penalties and
sanctions authorized under Federal law;
and
``(II) a private right of action by
the borrower against the lender and
servicer, with remedies to include
compensatory and punitive damages and
an assessment of costs and attorney's
fees.
``(ii) Transfers.--Unless a bona fide
purchaser has acquired title to the property as
a primary residence--
``(I) a certification described in
subparagraph (A) that contains a false
statement shall be a basis for revoking
the transfer of the property; and
``(II) the pre-sale lender and
servicer of the property shall--
``(aa) resume servicing the
loan as a loan insured under
this title; and
``(bb) reimburse the
Secretary for any insurance
claim paid and all costs
related to the sale of the
property.
``(4) Requirements for purchasers.--
``(A) In general.--Each purchaser of a covered
mortgage shall offer the borrower on the covered
mortgage--
``(i) appropriate loss mitigation options,
including affordable and sustainable loan
modifications; and
``(ii) the opportunity for a short sale or
a deed in lieu of foreclosure.
``(B) Loss mitigation options.--The specific
formula, calculations, waterfall steps, and other terms
for appropriate loss mitigation options described in
subparagraph (A) shall be published by the Secretary,
made available to the public, and included in a written
notice given to borrowers before any acceleration or
foreclosure is initiated after a loan sale.
``(5) Requirements for transferees.--With respect to a
transferee, including any subsequent transferee, of a covered
mortgage that is sold under this title--
``(A) the transferee shall certify in writing to
the Secretary that the transferee will comply with the
provisions of this section in the marketing and
transfer of any property received in the disposition of
any transferred loan;
``(B) the transferee shall provide to the Secretary
records documenting that the transfers of those
properties are in compliance with this section; and
``(C) the failure of the Secretary or the
transferee to comply with the requirements under this
section for a loan in default shall be a defense to
foreclosure, and a transferee may not execute a
foreclosure judgment or order of sale, or conduct a
foreclosure sale, until the transferee has complied
with all requirements under this section.
``(d) Limitations.--With respect to covered mortgages that are sold
under this title and foreclosed upon by the buyer, not less than 90
percent of the properties that are the subject of the covered mortgages
in an auction shall be--
``(1) sold to owner-occupants;
``(2) operated or transferred to an entity that will
operate the property as affordable rental housing for
households below 80 percent of the area median income for a
period of not less than 15 years; or
``(3) transferred or donated to a nonprofit agency that is
certified by the Secretary and will redevelop the property for
owner occupancy or affordable rental housing.
``(e) Prioritization of Sales.--The Secretary shall implement
policies, procedures, and controls to--
``(1) identify and recruit community partners;
``(2) engage in consultations with community partners
before the sale of a pool of covered mortgages under this title
to determine whether that sale can be designed to meet the
specific needs of the communities served by the community
partners; and
``(3) prioritize the sale of pools of single-family
mortgages to community partners by--
``(A) designing pools of covered mortgages for
direct sale to a community partner, the price of which
shall be set by the Secretary based on a pricing model
that considers--
``(i) the current fair market value of the
properties; and
``(ii) the potential impact of foreclosures
on those properties to the value of other homes
that secure mortgages insured under this title
in the same census tract; or
``(B) in the case of an auction, if the winning bid
is not from a community partner, permitting any
community partner that bid during that same auction to
have a final opportunity to enter a higher bid on the
pool.''.
(c) Fannie Mae.--Section 302 of the Federal National Mortgage
Association Charter Act (12 U.S.C. 1717) is amended by adding at the
end the following:
``(d)(1) The corporation may not sell or transfer any mortgage that
is secured by a single-family residential property (in this subsection
referred to as a `covered mortgage') under this section unless the
requirements of this subsection are met.
``(2)(A) If the corporation intends to sell or transfer a covered
mortgage, the corporation shall provide the current borrower and all
owners of record of the property securing the covered mortgage, or
require that the current borrower and owners of record be provided, a
separate written notice of the intent to sell the covered mortgage
that--
``(i) is mailed via certified and first class mail not less
than 90 days before the date on which the loan is included in
any proposed sale; and
``(ii) includes--
``(I) a description of the loss mitigation options
of the corporation that are available to borrowers in
financial distress and the obligation of servicers to
consider borrowers in default for those options;
``(II) a description of the actions that the
servicer of the loan has taken to review and implement
those options for the borrower; and
``(III) a description of the procedures the
borrower may use to contest with the corporation the
compliance by the servicer with that obligation.
``(B) The corporation may not sell any covered mortgage through any
type of non-performing loan sale auction program until the corporation
issues rules, through the notice and comment rule making procedures
under section 553 of title 5, United States Code, that address
essential aspects of any non-performing loan sale program, including--
``(i) the method of selection of loans for sale;
``(ii) notice to borrowers prior to inclusion of the loan
in a sale; and
``(iii) review of loss mitigation status prior to the sale,
selection of eligible bidders, loss mitigation guidelines
applicable to loan purchasers, and reporting requirements for
purchasers.
``(3)(A) Each purchaser of a covered mortgage shall offer the
borrower on the covered mortgage--
``(i) appropriate loss mitigation options, including
affordable and sustainable loan modifications; and
``(ii) the opportunity for a short sale or a deed in lieu
of foreclosure.
``(B) The specific formula, calculations, waterfall steps, and
other terms for appropriate loss mitigation options described in
subparagraph (A) shall be published by the corporation, made available
to the public, and included in a written notice given to borrowers
before any acceleration or foreclosure is initiated after a loan sale.
``(4) With respect to a transferee, including any subsequent
transferee, of a covered mortgage that is sold by the corporation under
this section--
``(A) the transferee shall certify in writing to the
corporation that the transferee will comply with the provisions
of this subsection in the marketing and transfer of any
property received in the disposition of any transferred loan;
``(B) the transferee shall provide to the corporation
records documenting that the transfers of those properties are
in compliance with this subsection; and
``(C) the failure of the corporation or the transferee to
comply with the requirements under this subsection for a loan
in default shall be a defense to foreclosure, and a transferee
may not execute a foreclosure judgment or order of sale, or
conduct a foreclosure sale, until the transferee has complied
with all requirements under this subsection.
``(5) With respect to covered mortgages that are sold by the
corporation under this section and foreclosed upon by the buyer, not
less than 90 percent of the properties that are the subject of the
covered mortgages in an auction shall be--
``(A) sold to owner-occupants;
``(B) operated or transferred to an entity that will
operate the property as affordable rental housing for
households below 80 percent of the area median income for a
period of not less than 15 years; or
``(C) transferred or donated to a nonprofit agency that is
certified by the corporation and will redevelop the property
for owner occupancy or affordable rental housing.
``(6) The corporation shall implement policies, procedures, and
controls to--
``(A) identify and recruit community partners;
``(B) engage in consultations with community partners
before the sale of a pool of covered mortgages under this
section to determine whether that sale can be designed to meet
the specific needs of the communities served by the community
partners; and
``(C) prioritize the sale of pools of single-family
mortgages to community partners by--
``(i) designing pools of covered mortgages for
direct sale to a community partner, the price of which
shall be set by the corporation based on a pricing
model that considers--
``(I) the current fair market value of the
properties; and
``(II) the potential impact of foreclosures
on those properties to the value of other homes
in the same census tract; or
``(ii) in the case of an auction, if the winning
bid is not from a community partner, permitting any
community partner that bid during that same auction to
have a final opportunity to enter a higher bid on the
pool.''.
(d) Freddie Mac.--Section 305 of the Federal Home Loan Mortgage
Corporation Act (12 U.S.C. 1454) is amended by adding at the end the
following:
``(e)(1) The Corporation may not sell or transfer any mortgage that
is secured by a single-family residential property (in this subsection
referred to as a `covered mortgage') under this section unless the
requirements of this subsection are met.
``(2)(A) If the Corporation intends to sell or transfer a covered
mortgage, the Corporation shall provide the current borrower and all
owners of record of the property securing the covered mortgage, or
require that the current borrower and owners of record be provided, a
separate written notice of the intent to sell the covered mortgage
that--
``(i) is mailed via certified and first class mail not less
than 90 days before the date on which the loan is included in
any proposed sale; and
``(ii) includes--
``(I) a description of the loss mitigation options
of the Corporation that are available to borrowers in
financial distress and the obligation of servicers to
consider borrowers in default for those options;
``(II) a description of the actions that the
servicer of the loan has taken to review and implement
those options for the borrower; and
``(III) a description of the procedures the
borrower may use to contest with the Corporation the
compliance by the servicer with that obligation.
``(B) The Corporation may not sell any covered mortgage through any
type of non-performing loan sale auction program until the Corporation
issues rules, through the notice and comment rule making procedures
under section 553 of title 5, United States Code, that address
essential aspects of any non-performing loan sale program, including--
``(i) the method of selection of loans for sale;
``(ii) notice to borrowers prior to inclusion of the loan
in a sale; and
``(iii) review of loss mitigation status prior to the sale,
selection of eligible bidders, loss mitigation guidelines
applicable to loan purchasers, and reporting requirements for
purchasers.
``(3)(A) Each purchaser of a covered mortgage shall offer the
borrower on the covered mortgage--
``(i) appropriate loss mitigation options, including
affordable and sustainable loan modifications; and
``(ii) the opportunity for a short sale or a deed in lieu
of foreclosure.
``(B) The specific formula, calculations, waterfall steps, and
other terms for appropriate loss mitigation options described in
subparagraph (A) shall be published by the Corporation, made available
to the public, and included in a written notice given to borrowers
before any acceleration or foreclosure is initiated after a loan sale.
``(4) With respect to a transferee, including any subsequent
transferee, of a covered mortgage that is sold by the Corporation under
this section--
``(A) the transferee shall certify in writing to the
Corporation that the transferee will comply with the provisions
of this subsection in the marketing and transfer of any
property received in the disposition of any transferred loan;
``(B) the transferee shall provide to the Corporation
records documenting that the transfers of those properties are
in compliance with this subsection; and
``(C) the failure of the Corporation or the transferee to
comply with the requirements under this subsection for a loan
in default shall be a defense to foreclosure, and a transferee
may not execute a foreclosure judgment or order of sale, or
conduct a foreclosure sale, until the transferee has complied
with all requirements under this subsection.
``(5) With respect to covered mortgages that are sold by the
Corporation under this section and foreclosed upon by the buyer, not
less than 90 percent of the properties that are the subject of the
covered mortgages in an auction shall be--
``(A) sold to owner-occupants;
``(B) operated or transferred to an entity that will
operate the property as affordable rental housing for
households below 80 percent of the area median income for a
period of not less than 15 years; or
``(C) transferred or donated to a nonprofit agency that is
certified by the Corporation and will redevelop the property
for owner occupancy or affordable rental housing.
``(6) The Corporation shall implement policies, procedures, and
controls to--
``(A) identify and recruit community partners;
``(B) engage in consultations with community partners
before the sale of a pool of covered mortgages under this
section to determine whether that sale can be designed to meet
the specific needs of the communities served by the community
partners; and
``(C) prioritize the sale of pools of single-family
mortgages to community partners by--
``(i) designing pools of covered mortgages for
direct sale to a community partner, the price of which
shall be set by the Corporation based on a pricing
model that considers--
``(I) the current fair market value of the
properties; and
``(II) the potential impact of foreclosures
on those properties to the value of other homes
in the same census tract; or
``(ii) in the case of an auction, if the winning
bid is not from a community partner, permitting any
community partner that bid during that same auction to
have a final opportunity to enter a higher bid on the
pool.''.
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
SEGREGATED BY LAW.
(a) Findings.--Congress finds the following:
(1) For generations, buying a home has been the primary way
working families build wealth.
(2) A home is not only a place to live, but also an asset
that may appreciate, help fund a new business, finance an
education, or cover retirement expenses. A home provides
stability and financial predictability, which are important
foundations for prosperity and access to opportunity for a
family.
(3) For decades, the Federal Government subsidized
homeownership--for White families. Until the 1960s, the Federal
Government systematically denied African Americans and other
marginalized groups the ability to obtain mortgage credit, buy
homes, and build wealth for their families while subsidizing
the American dream for White families.
(4) The Federal Government, through the Home Owners' Loan
Corporation and the Federal Housing Administration,
standardized and institutionalized discriminatory policies on
the basis of race, national origin, and religion that reflected
practices in the private sector and became a model for their
widespread adoption across the housing industry.
(5) Racist restrictive covenants and zoning ordinances also
robbed families of color of the opportunity to live and build
opportunity for their families in the community of their
choice.
(6) In the years before the 2008 financial crisis, lenders
targeted borrowers of color with abusive loans while government
regulators sat on their hands, further extracting wealth from
these same communities.
(7) The legacy of housing discrimination and regulatory
negligence is a contributor to a large and growing gap in
wealth and outcomes between Black and White families. The
typical White family has 8 times the wealth of the typical
Black family. The gap between the White homeownership rate and
the Black homeownership rate is bigger today than it was when
housing discrimination was legal. Nearly 75 percent of formerly
redlined communities are low- or moderate-income and 64 percent
are still communities of color.
(8) The purpose of this section is for the Federal
Government to take the first step toward addressing the racial
wealth gap that it contributed to creating by helping
individuals or descendants of individuals who were harmed by
housing discrimination or negligence by the Federal Government.
(b) Definitions.--In this section:
(1) Eligible resident.--The term ``eligible resident''
means a resident of a geographic area, as defined by the
Secretary by regulation under subsection (h), who--
(A) is a first-time homebuyer;
(B) has an income that is less than 120 percent of
the area median income; and
(C)(i) resided in that geographic area throughout
the 4-year period ending on the date of enactment of
this Act;
(ii) resided in that geographic area for a period
of not less than 4 years before moving out of the
geographic area subsequent to a foreclosure, short
sale, or deed in lieu of foreclosure on a home that--
(I) was the primary residence of the
resident; and
(II) was purchased or refinanced during the
period beginning on January 1, 2001, and ending
on December 31, 2008; or
(iii) resided in that geographic area for a period
of not less than 4 years before moving out of the
geographic area due to a major disaster declared by the
President or a State, territorial, or Tribal
government.
(2) First-time homebuyer.--The term ``first-time
homebuyer'' means an individual (and if married, the spouse of
the individual) who--
(A) intends to purchase a property for use as a
principal residence; and
(B) during the 3-year period ending on the date of
purchase of the property described in subparagraph
(B)--
(i) has had no ownership in a principal
residence; or
(ii) surrendered an ownership interest in a
principal residence as part of a divorce
proceeding.
(3) Low-income community.--The term ``low-income
community'' has the meaning given the term in section 45D of
the Internal Revenue Code of 1986.
(4) Secretary.--The term ``Secretary'' means the Secretary
of Housing and Urban Development.
(c) Establishment.--There is established in the Treasury of the
United States a fund that--
(1) shall be administered by the Secretary, acting through
the Office of Housing of the Department of Housing and Urban
Development; and
(2) shall be used--
(A) to provide grants to eligible residents to
purchase homes;
(B) for outreach to financial institutions in
targeted areas and eligible residents, including for
the administration of that outreach;
(C) for counseling or financial education
administered by counseling agencies approved by the
Secretary in order to ensure sustainable homeownership;
(D) to create and maintain the database described
in subsection (h)(3); and
(E) to maintain any records required to implement
this section.
(d) Grant Amount.--An eligible resident may receive a grant under
subsection (c) in an amount equal to--
(1) not more than 3.5 percent of the appraised value of the
property to be purchased; or
(2) if the appraised value of the property to be purchased
exceeds the principal obligation amount limitation for
mortgages insured under title II of the National Housing Act
(12 U.S.C. 1707 et seq.), 3.5 percent of the maximum principal
obligation limitation for the property to be purchased.
(e) Relation to FHA Loan.--An eligible resident shall not be
required to obtain a mortgage that is insured under title II of the
National Housing Act (12 U.S.C. 1707 et seq.) as a condition of
receiving a grant under subsection (c).
(f) Geographic Area.--An eligible resident shall not be required to
purchase a home within the geographic area described in subsection
(b)(1)(C) as a condition of receiving a grant under subsection (c).
(g) Layering of Assistance.--Receipt by an eligible recipient of
assistance for a down payment from a source other than the fund
established under subsection (c), including assistance from the Federal
Government, a State or local government, or any other public, private,
or nonprofit source, shall not affect the eligibility of the eligible
recipient for assistance under subsection (c).
(h) Regulations and Database.--Not later than 1 year after the date
of enactment of this Act, the Secretary shall--
(1) in consultation with interested parties, including
housing counseling agencies approved by the Secretary and
individuals or groups with expertise in fair housing,
promulgate regulations relating to the use of the fund
established under subsection (c), including defining the
geographic areas in which residents are eligible to receive
grants under subsection (c), which shall include--
(A) census tracts graded as ``hazardous'' or
``definitely declining'' in maps drawn by the Home
Owners' Loan Corporation that are, as of the date of
enactment of this Act, low-income communities;
(B) census tracts that were designated for non-
White citizens in jurisdictions that historically had
racially segregated zoning codes and are, as of the
date of enactment of this Act, low-income communities;
and
(C) census tracts that are racially or ethnically
concentrated areas of poverty, which shall mean a
census tract--
(i) with a non-White population of not less
than 50 percent; and
(ii) in which--
(I) not less than 40 percent of
families living in the census tract
have incomes that are at or below the
poverty line; or
(II) the average tract poverty rate
is 3 or more times the average tract
poverty tract for the metropolitan or
micropolitan area;
(2) promulgate regulations relating to the disbursement of
funds under this section to ensure that an eligible resident is
able to receive funds before the closing date for the home of
the eligible resident, which may include creating a program
that allows a lender to be reimbursed by the fund established
under subsection (c) if the lender--
(A) provides an eligible resident with funds for
the closing; or
(B) allows an eligible resident to be preapproved
to receive assistance under this section when arranging
financing for the home of the eligible resident;
(3) create a publicly accessible database that allows
individuals, real estate professionals, and lenders to
determine whether a borrower is eligible for assistance under
this section; and
(4) establish methods to verify that an individual is an
eligible resident.
(i) Appropriation.--Out of funds in the Treasury not otherwise
appropriated, there is appropriated to the fund established under
subsection (c) such sums as may be necessary for each of fiscal years
2022 through 2031 to carry out the activities under subsection (c)(2).
(j) Inclusion of Program in Home Buying Information Booklets.--
Section 5(b) of the Real Estate Settlement Procedures Act of 1974 (12
U.S.C. 2604(b)) is amended by inserting after paragraph (14) the
following:
``(15) Information relating to the down payment assistance
program established under section 201 of the American Housing
and Economic Mobility Act of 2021.''.
(k) Inclusion of Program as Mortgage Product.--Section 203(f)(1) of
the National Housing Act (12 U.S.C. 1709(f)(1)) is amended by inserting
``, including the down payment assistance program established under
section 201 of the American Housing and Economic Mobility Act of
2021,'' after ``mortgage products''.
SEC. 202. FORMULA GRANT PROGRAM FOR COMMUNITIES WITH AN APPRAISAL GAP.
(a) Definitions.--In this section--
(1) the term ``neighborhood with an appraisal gap'' means a
census tract in which the median sales price of a dwelling unit
is lower than the median cost to acquire and rehabilitate, or
build, a new dwelling unit;
(2) the term ``Secretary'' means the Secretary of Housing
and Urban Development; and
(3) the term ``State'' has the meaning given the term in
section 3(b)(7) of the United States Housing Act of 1937 (42
U.S.C. 1437a(b)(7)).
(b) Establishment.--The Secretary shall establish a formula grant
program to provide funding to States to support neighborhoods with an
appraisal gap, including borrowers with negative equity in their
primary residence in those neighborhoods, through--
(1) measures that provide funds to borrowers to--
(A) pay down arrears on an otherwise affordable
loan;
(B) pay down arrears or principal on a loan in
order to qualify for a loan modification that will
allow the borrower to keep the home;
(C) pay off, or pay down part of, a second mortgage
or home equity line of credit;
(D) pay off a small-dollar mortgage;
(E) pay delinquent taxes and tax liens;
(F) pay off delinquent water or sewer bills and
liens; and
(G) pay for home repairs or maintenance or for
modifications to bring the home into compliance with
any applicable codes; and
(2) programs to purchase or rehabilitate vacant or
distressed properties to enhance neighborhood property values.
(c) Formula.--The Secretary shall distribute amounts under this
section to States based on--
(1) the number of borrowers with a primary residence with
negative equity in each State; and
(2) the share of neighborhoods with an appraisal gap in
each State.
(d) Authorization of Appropriations.--There is authorized to be
appropriated to carry out this section $2,000,000,000 for fiscal year
2022.
SEC. 203. STRENGTHENING THE COMMUNITY REINVESTMENT ACT OF 1977.
(a) Short Title.--This section may be cited as the ``Community
Reinvestment Reform Act of 2021''.
(b) Amendments to the Community Reinvestment Act of 1977.--The
Community Reinvestment Act of 1977 (12 U.S.C. 2901 et seq.) is
amended--
(1) by striking sections 802 and 803 (12 U.S.C. 2901, 2902)
and inserting the following:
``SEC. 802. FINDINGS AND PURPOSE.
``(a) Findings.--Congress finds that--
``(1) regulated financial institutions are required by law
to demonstrate that they serve the convenience and needs of the
communities in which they are chartered or do business, in
particular low- and moderate-income communities;
``(2) the convenience and needs of communities include the
need for credit services, deposit services, transaction
services, other financial services, and community development
loans and investments; and
``(3) regulated financial institutions have a continuing
and affirmative obligation to meet the credit or other
financial needs of the local communities in which they are
chartered or do business.
``(b) Purpose.--It is the purpose of this title to require each
appropriate Federal financial supervisory agency to use its authority
when examining regulated financial institutions to ensure that those
institutions meet the credit and other financial needs of the local
communities in which they are chartered or do business consistent with
the safe and sound operation of those institutions.
``SEC. 803. DEFINITIONS.
``In this title:
``(1) Application for a deposit facility.--The term
`application for a deposit facility' means an application to
the appropriate Federal financial supervisory agency otherwise
required under Federal law or regulations thereunder for--
``(A) a charter for a national bank or Federal
savings and loan association;
``(B) deposit insurance in connection with a newly
chartered State bank, savings bank, savings and loan
association, or similar institution;
``(C) the establishment of a domestic branch or
other facility with the ability to accept deposits of a
regulated financial institution;
``(D) the relocation of the home office or a branch
office of a regulated financial institution;
``(E) the merger or consolidation with, the
acquisition of the assets of, or the assumption of the
liabilities of a regulated financial institution
requiring approval under section 18(c) of the Federal
Deposit Insurance Act (12 U.S.C. 1828(c)); or
``(F) the acquisition of shares in, or the assets
of, a regulated financial institution requiring
approval under section 3 of the Bank Holding Company
Act of 1956 (12 U.S.C. 1842).
``(2) Appropriate federal banking agency.--The term
`appropriate Federal banking agency' has the meaning given the
term in section 3 of the Federal Deposit Insurance Act (12
U.S.C. 1813).
``(3) Appropriate federal financial supervisory agency.--
The term `appropriate Federal financial supervisory agency'
means--
``(A) the appropriate Federal banking agency with
respect to depository institutions and depository
institution holding companies; and
``(B) the Bureau of Consumer Financial Protection
with respect to any covered person supervised by the
Bureau pursuant to section 1024 of the Dodd-Frank Wall
Street Reform and Consumer Protection Act (12 U.S.C.
5514).
``(4) Assessment area.--The term `assessment area' means,
with respect to a regulated financial institution, each
community, including a State, metropolitan area, or urban or
rural county, in which the institution--
``(A) maintains deposit-taking branches, automated
teller machines, or retail offices;
``(B) is represented by an agent;
``(C) issues a significant number of loans or other
products relative to the total number of loans or other
products made by the institution;
``(D) has issued not less than 75 percent of the
loans of the institution;
``(E) has conducted not less than 75 percent of the
business of the institution; or
``(F) has received not less than 75 percent of the
deposits of the institution.
``(5) Community benefits plan.--The term `community
benefits plan' means a plan that provides measurable goals for
future amounts of safe and sound loans, investments, services,
and other financial products for low- and moderate-income
communities and other distressed or underserved communities.
``(6) Community development.--The term `community
development' includes--
``(A) affordable housing for low- or moderate-
income individuals and avoidance of patterns of lending
resulting in the loss of affordable housing units;
``(B) community development services, including
counseling and successful mortgage or loan
modifications of delinquent loans;
``(C) activities that promote integration;
``(D) activities that promote economic development
by financing small businesses or farms that meet the
size eligibility requirements of the development
company or small business investment company programs
under section 121.301 of title 13, Code of Federal
Regulations, or any successor regulation, with an
emphasis on small businesses that have gross annual
revenues of not more than $1,000,000;
``(E) activities that revitalize or stabilize--
``(i) low- or moderate-income geographies;
``(ii) designated disaster areas;
``(iii) distressed or underserved
nonmetropolitan middle-income geographies
designated by the Federal Financial
Institutions Examination Council, based on--
``(I) rates of poverty,
unemployment, and population loss; or
``(II) population size, density,
and dispersion, if those activities
help to meet essential community needs,
including the needs of low- and
moderate-income individuals; or
``(iv) other distressed or underserved
communities;
``(F) activities that promote physical,
environmental, and sensory accessibility in housing
stock that is integrated into the community; and
``(G) other activities that promote the objectives
of this title, as determined by the appropriate Federal
financial supervisory agencies.
``(7) Depository institution; depository institution
holding company.--The terms `depository institution' and
`depository institution holding company' have the meanings
given those terms in section 3 of the Federal Deposit Insurance
Act (12 U.S.C. 1813).
``(8) Entire community.--The term `entire community' means
all of the assessment areas of a regulated financial
institution.
``(9) Enumerated consumer laws.--The term `enumerated
consumer laws' has the meaning given the term in section 1002
of the Consumer Financial Protection Act of 2010 (12 U.S.C.
5481).
``(10) Geography.--The term `geography' means a census
tract delineated by the Bureau of the Census in the most recent
decennial census.
``(11) Insured depository institution.--The term `insured
depository institution' has the meaning given the term in
section 3 of the Federal Deposit Insurance Act (12 U.S.C.
1813).
``(12) Other distressed or underserved community.--The term
`other distressed or underserved community' means an area or
census tract that, according to a periodic review and data
analysis by the appropriate Federal financial supervisory
agencies on an interagency basis through the Federal Financial
Institutions Examination Council, is experiencing economic
hardship or is underserved by financial institutions.
``(13) Regulated financial institution.--The term
`regulated financial institution' means--
``(A) an insured depository institution;
``(B) a depository institution holding company; and
``(C) a U.S. nonbank mortgage originator.
``(14) U.S. nonbank mortgage originator.--The term `U.S.
nonbank mortgage originator' means a covered person subject to
section 1024 of the Dodd-Frank Wall Street Reform and Consumer
Protection Act (12 U.S.C. 5514) that offers or provides--
``(A) origination of loans secured by real estate
for use by consumers primarily for personal, family, or
household purposes; or
``(B) loan modification or foreclosure relief
services in connection with a loan described in
subparagraph (A).'';
(2) in section 804 (12 U.S.C. 2903)--
(A) by redesignating subsections (c) and (d) as
subsections (f) and (g), respectively;
(B) by striking subsections (a) and (b) and
inserting the following:
``(a) Depository Institutions and Bank Holding Companies.--In
connection with its examination of a regulated financial institution
other than a U.S. nonbank mortgage originator, the appropriate Federal
financial supervisory agency shall perform the following:
``(1) Assess the record of the institution in meeting the
credit and other financial needs of its entire community, in
particular low- and moderate-income people and communities, and
other distressed or underserved communities, consistent with
the safe and sound operation of the institution.
``(2) Assess the effectiveness of the following activities
in meeting the credit and other financial needs of the
assessment areas of the institution, consistent with the safe
and sound operation of the institution:
``(A) Retail lending, including home, small
business, consumer, and other lending and financial
products, that responds to credit needs or other
financial needs.
``(B) Community development lending and
investments, which may include a consideration of--
``(i) the origination of loans and other
efforts by the institution to assist existing
low- and moderate-income residents to remain in
affordable housing in their community; and
``(ii) the origination of loans by the
institution that result in the construction,
rehabilitation, or preservation of affordable
housing units.
``(C) Retail financial services and community
development services.
``(3) With respect to its evaluation of an application for
a deposit facility by the institution--
``(A) consider the record described in paragraph
(1), the overall rating of the institution under this
section, and any improvement plans submitted pursuant
to this section;
``(B) provide an opportunity for public comment for
a period of not less than 60 days;
``(C) consider changes in the community
reinvestment performance of the institution since the
most recent rating under this section by the
appropriate Federal financial supervisory agency; and
``(D) require--
``(i) a demonstration of public benefit,
including a community benefits plan with
measurable goals regarding increasing
responsible lending and other financial
products that is commensurate with the ability
of the institution to accomplish those goals;
``(ii) that the institution consult with
community-based organizations and other
community stakeholders in developing the
community benefits plan; and
``(iii) a public hearing for any
institution that has a received a `need-to-
improve' or `low satisfactory' grade in any
individual assessment area during the most
recent examination.
``(b) U.S. Nonbank Mortgage Originator.--In connection with its
examination of a U.S. nonbank mortgage originator, the appropriate
Federal financial supervisory agency shall perform the following:
``(1) Assess the record of the U.S. nonbank mortgage
originator in meeting the credit or other financial needs of
its entire community, in particular low-income and moderate-
income people and communities and other distressed or
underserved communities, consistent with the safe and sound
operation of the U.S. nonbank mortgage originator.
``(2) Assess, as appropriate, the following activities in
the assessment areas of the U.S. nonbank mortgage originator:
``(A) Retail lending, including home loans.
``(B) Community development services.
``(C) Community development lending and
investments, which may include a consideration of--
``(i) the origination of loans and other
efforts by the institution to assist existing
low- and moderate-income residents to remain in
affordable housing in their community;
``(ii) the origination of loans by the
institution that result in the construction,
rehabilitation or preservation of affordable
housing units; and
``(iii) investments in, grants to, or loans
to community development financial institutions
(as defined in section 103 of the Community
Development Banking and Financial Institutions
Act of 1994 (12 U.S.C. 4702)), community
development corporations (as defined in section
613 of the Community Economic Development Act
of 1981 (42 U.S.C. 9802)), and other nonprofit
organizations serving the housing and
development needs of the community.
``(3) With respect to its evaluation of an application for
a deposit facility by the U.S. nonbank mortgage originator--
``(A) consider the record described in paragraph
(1), the overall rating of the U.S. nonbank mortgage
originator under this section, and any improvement
plans submitted pursuant to this section;
``(B) provide an opportunity for public comment for
a period of not less than 60 days;
``(C) consider changes in the community
reinvestment performance of the U.S. nonbank mortgage
originator since the most recent rating under this
section by the appropriate Federal financial
supervisory agency; and
``(D) require--
``(i) a demonstration that granting the
application for a deposit facility is in the
public interest, which shall include a
submission of a community benefits plan, which
shall be commensurate with the ability of the
institution to accomplish the plan, by the U.S.
nonbank mortgage originator to the appropriate
Federal financial supervisory agency;
``(ii) that the U.S. nonbank mortgage
originator consult with community-based
organizations and other community stakeholders
in developing the community benefits plan; and
``(iii) a public hearing for any U.S.
nonbank mortgage originator that has a received
a `need-to-improve' or `low satisfactory' grade
in any individual assessment area during the
most recent examination.
``(c) Requirements.--
``(1) In general.--In connection with its examination of a
regulated financial institution under subsection (a) or (b),
the appropriate Federal financial supervisory agency shall--
``(A) consider public comments received by the
appropriate Federal financial supervisory agency
regarding the record of the institution in meeting the
credit or other financial needs of its entire
community, including low- and moderate-income
communities; and
``(B) require--
``(i) an improvement plan for an
institution that receives a rating of `low
satisfactory' or lower on the written
evaluation of the institution, or such a rating
in any individual assessment area; and
``(ii) the improvement plan described in
clause (i) to result in the reasonable
likelihood that the institution will obtain a
rating of at least `high satisfactory' in
meeting community credit or other financial
needs in the relevant measure on the next
examination.
``(2) Improvement plan.--
``(A) In general.--A regulated financial
institution that is required to submit an improvement
plan required under paragraph (1)(B) shall submit the
plan in writing to the appropriate Federal financial
supervisory agency not later than 90 days after
receiving notice that the regulated financial
institution is required to submit the plan.
``(B) Public comment.--Upon receipt of an
improvement plan of a regulated financial institution
required under paragraph (1)(B), the appropriate
Federal financial supervisory agency shall--
``(i) make the plan available to the public
for review and comment for a period of not less
than 60 days; and
``(ii) require the regulated financial
institution to revise, as appropriate, the
improvement plan in response to the public
comments received under the public review and
comment period described in clause (i) and
submit the plan to the appropriate Federal
financial supervisory agency not later than 60
days after the end of that period.
``(3) Examination of certain regulated financial
institutions.--In the case of a regulated financial institution
whose lending or other business is not clustered in
geographical areas and is thinly dispersed across the country,
the institution shall--
``(A) be evaluated under subsection (a) or (b), as
applicable--
``(i) by considering the effectiveness of
the institution in serving customers or
borrowers, with a special emphasis on low- and
moderate-income individuals across the country
regardless of where the individuals reside; and
``(ii) based on objective thresholds
developed by the appropriate Federal financial
supervisory agencies to clarify when lending or
other business is dispersed across the country
and not clustered in distinct geographical
areas, which may include low levels of lending
or other financial products across States or
other areas; and
``(B) meet the needs of other distressed or
underserved communities.
``(d) Consideration.--Remediation of consumers pursuant to an order
by an court or administrative body or a settlement with a government
agency or a private party may not be considered in an assessment
conducted under subsection (a)(2) or (b)(2).
``(e) Rule of Construction.--An evaluation of a bank holding
company under this section shall incorporate evaluations of subsidiary
regulated financial institutions made by the appropriate Federal
financial supervisory agency of each subsidiary, if applicable.'';
(C) in subsection (f), as so redesignated--
(i) by striking paragraph (2);
(ii) by redesignating paragraph (3) as
paragraph (2); and
(iii) in paragraph (2), as so redesignated,
by striking subparagraph (C); and
(D) in subsection (g), as so redesignated, by
striking ``subsection (a)'' and inserting ``subsections
(a) and (b)'';
(3) in section 807 (12 U.S.C. 2906)--
(A) in subsection (a)--
(i) by striking ``an insured depository
institution'' and inserting ``a regulated
financial institution''; and
(ii) by inserting ``or financial'' after
``credit'';
(B) in subsection (b)--
(i) in paragraph (1)--
(I) in subparagraph (A)--
(aa) in clause (ii), by
striking ``and'' at the end;
(bb) by redesignating
clause (iii) as clause (iv);
and
(cc) by inserting after
clause (ii) the following:
``(iii) disclose whether the institution engaged in
acts or practices that the Bureau of Consumer Financial
Protection has determined, and has publicly disclosed,
violate the enumerated consumer laws; and''; and
(II) by striking subparagraph (B)
and inserting the following:
``(B) Metropolitan area distinctions.--The information
required under clauses (i) and (ii) of subparagraph (A) shall
be presented separately for each assessment area.
``(C) Treatment with respect to violations of enumerated
consumer laws.--If a regulated financial institution has
engaged in acts or practices that the appropriate Federal
financial supervisory agency has determined to be unfair,
deceptive, or abusive or acts or practices that violate
enumerated consumer laws intended to ensure the fair,
equitable, and nondiscriminatory access to credit for
individuals and communities that are enforced by the Bureau of
Consumer Financial Protection or other Federal or State
agencies, the written evaluation shall be negatively influenced
in a manner commensurate with the extent of the harm suffered
by those individuals and communities.'';
(ii) in paragraph (2)--
(I) by striking subparagraphs (A),
(B), (C), and (D) and inserting the
following:
``(A) `Outstanding record of meeting community
credit or other financial needs'.
``(B) `High Satisfactory record of meeting
community credit or other financial needs'.
``(C) `Low Satisfactory record of meeting community
credit or other financial needs'.
``(D) `Needs to improve record of meeting community
credit or other financial needs'.
``(E) `Substantial noncompliance in meeting
community credit or other financial needs'.''; and
(iii) by inserting after the flush text
following paragraph (2) the following:
``(3) Additional authority.--The appropriate Federal
financial supervisory agencies may--
``(A) alter the ratings under this subsection to
change or include additional ratings; and
``(B) develop an accompanying point system that
includes ranges for each rating category under
paragraph (2).'';
(C) by redesignating subsection (e) as subsection
(f); and
(D) by inserting after subsection (d) the
following:
``(e) Appeals of Rating.--If a regulated financial institution
appeals the assigned rating under this section, the appropriate Federal
financial supervisory agency shall post a public notice of the appeal
on the part of the website of the appropriate Federal financial
supervisory agency that contains information on this title.'';
(4) in section 806 (12 U.S.C. 2905)--
(A) by striking ``Regulations'' and inserting the
following:
``(a) In General.--Regulations'';
(B) in subsection (a), as so designated, by
striking ``companies,,'' and inserting ``companies,'';
and
(C) by adding at the end the following:
``(b) Periodic Review.--Not later than 5 years after the date of
enactment of this subsection and every 5 years thereafter, the
appropriate Federal financial supervisory agencies shall--
``(1) review the regulations promulgated to carry out this
title; and
``(2) report to Congress any recommendations for updates to
the regulations and this title, which may include consideration
of--
``(A) data collection under this title;
``(B) the rigor of evaluations under this title;
``(C) the assessment area coverage of loans and
deposits; and
``(D) the extent to which the provisions of this
title are reducing disparities in access to credit and
capital by income and race.''; and
(5) by adding at the end the following:
``SEC. 810. DATA COLLECTION AND REPORTING REQUIREMENTS.
``(a) Data Collection.--
``(1) Consumer loans.--
``(A) In general.--Each regulated financial
institution shall collect and maintain in machine
readable form, as prescribed by the appropriate Federal
financial supervisory agency, data for consumer loans
originated or purchased by the regulated financial
institution, including motor vehicle loans, credit
cards, lines of credit, and other secured or unsecured
loans. The regulated financial institution shall
maintain data separately for each category of consumer
loan, including the following for each loan:
``(i) A unique number or alpha-numeric
symbol that can be used to identify the
relevant loan.
``(ii) The loan amount at origination or
purchase.
``(iii) The loan location.
``(iv) The gross annual income of the
borrower that the regulated financial
institution considered in making its credit
decision.
``(B) Exemptions.--The appropriate Federal
financial supervisory agencies may exempt classes of
regulated financial institutions from the requirements
under subparagraph (A) due to low levels of consumer
lending or other factors.
``(2) Community development loans and investments.--
``(A) Collection and maintenance of data.--Each
regulated financial institution shall collect and
maintain in machine readable form, as prescribed by the
appropriate Federal financial supervisory agency, data
on the categories of community development lending and
investments, including data regarding financing
affordable housing, small business development, and
economic development.
``(B) Public dissemination.--Each regulated
financial institution shall--
``(i) publicly disseminate the data
described in subparagraph (A) on a county level
and for categories of census tracts including
low- and moderate-income census tracts or other
distressed and underserved census tracts; and
``(ii) consider disseminating the data
described in subparagraph (A) by individual
census tracts in addition to the categories
described in clause (i).
``(3) Assessment area data.--
``(A) In general.--Each regulated financial
institution shall collect and report to the appropriate
Federal financial supervisory agency by March 1 of each
year a list for each assessment area showing the
geographies within the area.
``(B) Publication.--The appropriate Federal
financial supervisory agencies shall make the list of
assessment areas reported by each regulated financial
institution under subparagraph (A) publicly available
on the part of the website of the appropriate Federal
financial supervisory agency that contains information
on this title.
``(4) Deposits.--The appropriate Federal financial
supervisory agencies shall--
``(A) collect data from regulated financial
institutions that reflects--
``(i) the number of customers of those
institutions that reside in categories of
census tracts including low- and moderate-
income census tracts or other distressed and
underserved census tracts and the dollar amount
of deposits of those customers; and
``(ii) the number of small businesses that
are located in the census tract categories
described in clause (i); and
``(B) consider the dissemination of the deposit
data collected under subparagraph (A) by individual
census tracts in addition to the categories described
in that subparagraph.
``(b) Aggregate Disclosure Statements.--
``(1) In general.--Each appropriate Federal financial
supervisory agency shall prepare annually, for each assessment
area, a disclosure statement of home, small business, small
farm, and consumer lending for each regulated financial
institution subject to reporting under this section and an
aggregated statement for all reporting institutions combined,
which shall indicate, for each assessment area, the number and
amount of all small business, small farm, and consumer loans
originated or purchased sorted by income level of borrowers,
race and ethnicity of borrowers, revenue size of small business
and farms, and categories of census tracts.
``(2) Deposits and community development loans and
investments.--An appropriate Federal financial supervisory
agency shall include data on deposits and community development
loans and investments in the disclosure statements prepared
under paragraph (1).
``(3) Adjusted form.--An appropriate Federal financial
supervisory agency may adjust the form of the disclosure
statement prepared under paragraph (1) if necessary, because of
special circumstances, to protect the privacy of a borrower or
the competitive position of a regulated financial institution.
``(c) Central Data Depositories.--The Federal Financial
Institutions Examination Council, in consultation with the appropriate
Federal financial supervisory agencies, shall implement a system--
``(1) to allow the public to access online and in a
searchable format the data maintained under paragraphs (1)
through (4) of subsection (a); and
``(2) that ensures that personally identifiable financial
information is not disclosed to public.
``(d) Limitation.--An appropriate Federal financial supervisory
agency may not use the authorities of the appropriate Federal financial
supervisory agency under this section to obtain a record from a
regulated financial institution for the purpose of gathering or
analyzing the personally identifiable financial information of a
consumer.''.
(c) Amendment to the Bank Holding Company Act of 1956.--Section
4(k)(6) of the Bank Holding Company Act of 1956 (12 U.S.C. 1843(k)(6))
is amended to read as follows:
``(6) Notice and opportunity for comment required.--
``(A) In general.--No financial holding company
shall directly or indirectly acquire, and no company
that becomes a financial holding company shall directly
or indirectly acquire control of, any company in the
United States, including through merger, consolidation,
or other type of business combination, that is engaged
in activities permitted under this subsection or
subsection (n) or (o), unless--
``(i) the holding company has provided
notice to the Board, not later than 60 days
prior to the proposed acquisition or prior to
becoming a financial holding company, and
during that time period, or such longer time
period not exceeding an additional 60 days, as
established by the Board;
``(ii) the Board has provided public notice
and opportunity for comment for not less than
60 days; and
``(iii) the Board has not issued a notice
disapproving the proposed acquisition or
retention.
``(B) Factors for consideration.--In reviewing any
prior notice filed under this paragraph, the Board
shall--
``(i) consider the overall rating of the
financial holding company under the Community
Reinvestment Act of 1977 (12 U.S.C. 2901 et
seq.) and any improvement plans submitted
pursuant to that Act;
``(ii) provide opportunity for public
comment for a period of not less than 60 days;
``(iii) consider changes in the community
reinvestment performance of the financial
holding company since the last rating under the
Community Reinvestment Act of 1977 (12 U.S.C.
2901 et seq.) by the appropriate Federal
financial supervisory agency; and
``(iv) require--
``(I) a demonstration that granting
the application for a deposit facility
is in the public interest, which shall
include submission to the appropriate
Federal financial supervisory agency of
a community benefits plan commensurate
with the ability of the institution to
carry out that plan;
``(II) that the institution consult
with community-based organizations and
other community stakeholders in
developing the community benefits plan;
and
``(III) a public hearing for any
bank that has received a `need-to-
improve' or `low satisfactory' grade in
any assessment area during the last
examination under the Community
Reinvestment Act of 1977 (12 U.S.C.
2901 et seq.).''.
(d) Technical and Conforming Amendment.--Section 10(c)(2)(H)(i) of
the Home Owners' Loan Act (12 U.S.C. 1467a(c)(2)(H)(i)) is amended by
striking ``section 804(c) of the Community Reinvestment Act of 1977 (12
U.S.C. 2903(c))'' and inserting ``section 804(f) of the Community
Reinvestment Act of 1977 (12 U.S.C. 2903(f))''.
SEC. 204. AMENDMENTS RELATING TO CREDIT UNION SERVICE TO UNDERSERVED
AREAS.
(a) In General.--The Federal Credit Union Act (12 U.S.C. 1751 et
seq.) is amended--
(1) in section 101 (12 U.S.C. 1752)--
(A) in paragraph (8), by striking ``and'' at the
end;
(B) in paragraph (9), by striking the period at the
end and inserting ``; and''; and
(C) by adding at the end the following:
``(10) the term `underserved area'--
``(A) means a local community, neighborhood, or
rural district that--
``(i) is an investment area, as defined in
section 103 of the Community Development
Banking and Financial Institutions Act of 1994
(12 U.S.C. 4702), that meets such additional
requirements that the Board may impose; and
``(ii) is underserved, based on data of the
Board and the Federal banking agencies (as
defined in section 3 of the Federal Deposit
Insurance Act (12 U.S.C. 1813)), by other
depository institutions (as defined in section
19(b)(1)(A) of the Federal Reserve Act (12
U.S.C. 461(b)(1)(A)); and
``(B) notwithstanding subparagraph (A), includes,
with respect to any Federal credit union, any
geographic area within which the credit union--
``(i) has received approval to provide
service before the date of enactment of this
paragraph from the Administration; and
``(ii) has established a service facility
before that date of enactment.'';
(2) in section 106 (12 U.S.C. 1756), by adding at the end
the following: ``The Board shall monitor adherence by a Federal
credit union to a significant unmet needs plan submitted under
section 109(h) by that Federal credit union that describes how
the Federal credit union will serve the deposit and other
financial needs of the community.''; and
(3) in section 109 (12 U.S.C. 1759)--
(A) in subsection (c), by amending paragraph (2) to
read as follows:
``(2) Exception for underserved areas.--
``(A) In general.--Notwithstanding subsection (b),
the Board may approve an application by a Federal
credit union to allow the membership of the credit
union to include any person or organization whose
principal residence or place of business is located
within a local community, neighborhood, or rural
district if--
``(i) the Board determines--
``(I) at any time after August 7,
1998, that the local community,
neighborhood, or rural district taken
into account for purposes of this
paragraph is an underserved area; and
``(II) at the time of the approval,
that the credit union is well
capitalized or adequately capitalized
(as defined in section 216(c)(1)); and
``(ii) before the end of the 24-month
period beginning on the date of the approval,
the credit union has established and maintains
an ongoing method to provide services in the
local community, neighborhood, or rural
district.
``(B) Termination of approval.--
``(i) In general.--Any failure of a Federal
credit union to meet the requirement of clause
(ii) of subparagraph (A) by the end of the 24-
month period referred to in that clause shall
constitute a termination, as a matter of law,
of any approval of an application under this
paragraph by the Board with respect to the
membership of the credit union.
``(ii) Significant unmet needs plan.--The
Board may terminate the membership of a Federal
credit union upon a finding that the credit
union is not meeting the terms of the
significant unmet needs plan of the credit
union submitted under subsection (h)(1).
``(C) Credit union reporting requirement.--Any
Federal credit union that has an application approved
under this paragraph shall, as part of the ordinary
course of the examination cycle and supervision
process, submit a report to the Administration that
includes--
``(i) the number of members of the credit
union who are members by reason of the
application;
``(ii) the number of offices or facilities
maintained by the credit union in the local
community, neighborhood, or rural district
taken into account by the Board in approving
the application; and
``(iii) evidence, as specified by the Board
by regulation, demonstrating compliance by the
credit union with the significant unmet needs
plan submitted by the credit union under
subsection (h)(1), as specified by the
Administration.
``(D) Publication by administration.--The
Administration shall publish an annual report
containing--
``(i) a list of all the applications
approved under this paragraph before the date
on which the report is published;
``(ii) the number and locations of the
underserved areas taken into account in
approving those applications;
``(iii) the total number of members of
credit unions who are members by reason of the
approval of those applications; and
``(iv) evidence demonstrating compliance by
credit unions with significant unmet needs
plans submitted by the credit unions under
subsection (h)(1), as specified by the
Administration.'';
(B) in subsection (e)(2), by inserting ``subsection
(c)(2) and'' after ``provided in''; and
(C) by adding at the end the following:
``(h) Additional Requirements for Community Credit Unions.--
``(1) In general.--A Federal credit union desiring
membership as a credit union described in subsection (b)(3)
shall submit to the Board a business plan, which shall include,
among other issues, a marketing plan that identifies--
``(A) the unique needs of the various demographic
groups in the proposed community; and
``(B) how the credit union will market to each
group, particularly underserved groups, to address
those needs.
``(2) Public comment and hearing.--With respect to a
Federal credit union desiring membership as a credit union
described in subsection (b)(3) for an area with multiple
political jurisdictions with a population of not less than
2,500,000, the Administration shall--
``(A) publish a notice in the Federal Register
seeking comment from interested parties about the
proposed community; and
``(B) conduct a public hearing regarding the
application of the Federal credit union.''.
(b) Regulations.--Not later than 1 year after the date of enactment
of this Act, the National Credit Union Administration Board shall issue
final regulations to implement the amendments made by subsection (a).
SEC. 205. ELIGIBILITY OF CERTAIN DIRECT DESCENDANTS OF CERTAIN VETERANS
FOR HOUSING LOANS GUARANTEED BY THE SECRETARY OF VETERANS
AFFAIRS.
(a) Expansion of Definition of Veteran for Purposes of Housing Loan
Benefits.--Section 3701(b) of title 38, United States Code, is amended
by adding at the end the following new paragraph:
``(8)(A) The term `veteran' also includes, for purposes of
home loans, any direct descendant of a veteran described in
subparagraph (B) if the descendant is living on the date of the
enactment of the American Housing and Economic Mobility Act of
2021.
``(B) A veteran described in this clause is a veteran who--
``(i) served on active duty at any time during the
period between June 22, 1944, and April 11, 1968;
``(ii) is deceased; and
``(iii) did not receive a housing loan benefit
under this chapter during his or her lifetime.
``(C) In this paragraph, the term `direct descendant'
includes a legally adopted descendant.''.
(b) Expansion of Eligibility.--Section 3702(a)(2) of such title is
amended by adding at the end the following new subparagraph:
``(H) Each direct descendant described in section
3701(b)(8) of this title.''.
(c) Effective Date.--The amendments made by this section shall take
effect on the date that is one year after the date of the enactment of
this Act.
(d) Regulations.--Not later than 180 days after the date of the
enactment of this Act, the Secretary of Veterans Affairs shall
prescribe regulations to carry out the amendments made by this section.
TITLE III--REMOVING BARRIERS THAT ISOLATE COMMUNITIES
SEC. 301. EXPANDING RIGHTS UNDER THE FAIR HOUSING ACT.
(a) Purposes.--The purposes of the amendments made by this section
are--
(1) to expand, as well as clarify, confirm, and create
greater consistency in, the protections against discrimination
on the basis of all covered characteristics; and
(2) to provide guidance and notice to individuals,
organizations, corporations, and agencies regarding their
obligations under Federal law.
(b) Amendments to the Fair Housing Act.--The Fair Housing Act (42
U.S.C. 3601 et seq.) is amended--
(1) in section 802 (42 U.S.C. 3602), by adding at the end
the following:
``(p) `Gender identity' means the gender-related identity,
appearance, or mannerisms or other gender-related characteristics of an
individual, regardless of the individual's designated sex at birth.
``(q) `Marital status' has the meaning given the term in section
202.2 of title 12, Code of Federal Regulations, or any successor
regulation.
``(r) `Sexual orientation' means homosexuality, heterosexuality, or
bisexuality.
``(s) `Source of income' includes income for which there is a
reasonable expectation that the income will continue from--
``(1) a profession, occupation, or job;
``(2) any government or private assistance, grant, loan, or
rental assistance program, including vouchers issued under the
United States Housing Act of 1937 (42 U.S.C. 1437 et seq.);
``(3) a gift, an inheritance, a pension, an annuity,
alimony, child support, or other consideration or benefit; or
``(4) the sale or pledge of property or an interest in
property.
``(t) `Veteran status' means--
``(1) a member of the uniformed services, as defined in
section 101 of title 10, United States Code; or
``(2) a veteran, as defined in section 101 of title 38,
United States Code.'';
(2) in section 804 (42 U.S.C. 3604)--
(A) by inserting ``actual or perceived'' before
``race, color'' each place that term appears;
(B) by striking ``sex,'' each place that term
appears and inserting ``sex (including sexual
orientation and gender identity), marital status,
source of income, veteran status,''; and
(C) in subsection (c)--
(i) by inserting ``(1)'' before ``To
make''; and
(ii) by adding at the end the following:
``(2) Nothing in this title shall be construed to--
``(A) prohibit a lender from implementing a loan program
for veterans or based upon veteran status; or
``(B) prohibit an entity from providing housing assistance
under--
``(i) section 8(o)(19) of the United States Housing
Act of 1937 (42 U.S.C. 1437f(o)(19));
``(ii) the Homeless Providers Grant and Per Diem
program of the Department of Veterans Affairs; or
``(iii) any other Federal housing assistance
program for veterans or based on veteran status.'';
(3) in section 805 (42 U.S.C. 3605)--
(A) by inserting ``actual or perceived'' before
``race, color'' each place that term appears; and
(B) by striking ``sex,'' each place that term
appears and inserting ``sex (including sexual
orientation and gender identity), marital status,
source of income, veteran status,'';
(4) in section 806 (42 U.S.C. 3606)--
(A) by inserting ``actual or perceived'' before
``race, color''; and
(B) by striking ``sex,'' each place that term
appears and inserting ``sex (including sexual
orientation and gender identity), marital status,
source of income, veteran status,''; and
(5) in section 808(e)(6) (42 U.S.C. 3608(e)(6)), by
striking ``sex,'' and inserting ``sex (including sexual
orientation and gender identity), marital status, source of
income, veteran status,''.
(c) Prevention of Intimidation.--Section 901 of the Civil Rights
Act of 1968 (42 U.S.C. 3631) is amended--
(1) by inserting ``actual or perceived'' before ``race,
color'' each place that term appears; and
(2) by striking ``sex,'' each place that term appears and
inserting ``sex (including sexual orientation (as such term is
defined in section 802 of this Act) and gender identity (as
defined in section 802 of this Act)), marital status (as
defined in section 802), source of income (as defined in
section 802), veteran status (as defined in section 802),''.
(d) Rule of Construction.--Nothing in the amendments made by this
section shall be construed to mean that a particular class of
individuals was not protected against discrimination under Federal law
as in effect on the day before the date of enactment of this Act.
SEC. 302. IMPROVING OUTCOMES IN HOUSING ASSISTANCE PROGRAMS.
(a) Indian Housing Assistance.--Section 502 of the Native American
Housing Assistance and Self-Determination Act of 1996 (25 U.S.C. 4181)
is amended by adding at the end the following:
``(c) Applicability.--Subsections (a) and (b) shall not apply with
respect to tenant-based assistance provided under section 8(o) of the
United States Housing Act of 1937 (42 U.S.C. 1437f(o)).''.
(b) Supplemental Administrative Fee.--Section 8(q)(2)(B) of the
United States Housing Act of 1937 (42 U.S.C. 1437f(q)(2)(B)) is amended
by inserting ``, including the cost of assisting families with children
or families with a member with a disability that move to lower poverty,
higher opportunity neighborhoods (as determined by the Secretary based
on objective, evidence-based criteria)'' after ``programs''.
(c) Regional Planning to Increase Access to Higher Opportunity
Areas.--Section 8(o) of the United States Housing Act of 1937 (42
U.S.C. 1437f(o)) is amended by adding at the end the following:
``(21) Increasing access to higher opportunity areas.--
``(A) Location analysis.--
``(i) In general.--A public housing agency
that administers the program under this
subsection in a metropolitan area shall--
``(I) analyze the locations where
the participants in the program of the
public housing agency live; and
``(II) based on the analysis
described in subclause (I), establish
policies and practices to reduce
disparities and barriers to access to
locations throughout the metropolitan
area that evidence indicates are more
likely to improve outcomes for children
or adults.
``(ii) Considerations.--The location
analysis required under this subparagraph
shall--
``(I) consider separately the
locations of families with children,
households that include a person with
disabilities, and other groups
protected under the Fair Housing Act
(42 U.S.C. 3601 et seq.); and
``(II) include an analysis of the
locations in relation to dwelling units
with rents that are potentially
affordable to voucher holders and the
likely impact of key neighborhood
attributes on their well-being and
long-term success, based on Federal and
available local data.
``(iii) Mapping tools.--The Secretary
shall--
``(I) provide mapping tools and
other information necessary for a
public housing agency to perform the
location analysis under this
subparagraph using the demographic data
on participating families submitted to
the Secretary under part 908 of title
24, Code of Federal Regulations, or any
successor regulation;
``(II) publish a notice in the
Federal Register, subject to public
comment, that specifies the data
sources and definitions that will be
incorporated in each mapping tool
required under subclause (I); and
``(III) update the notice required
under subclause (II) as needed based on
changes in the availability of relevant
data or evidence of neighborhood
attributes likely to impact the well-
being and long-term success of
participants in the program under this
subsection.
``(iv) Frequency and availability.--The
location analysis required under this
subparagraph shall--
``(I) be performed by each public
housing agency described in clause (i)
not less frequently than once every 5
years;
``(II) be performed by all public
housing agencies in a metropolitan area
in the same year, as determined by the
Secretary; and
``(III) be made available to the
public in a manner that protects the
privacy of program participants.
``(B) Regional policies to increase access to
higher opportunity neighborhoods.--Each public housing
agency described in subparagraph (A)(i) shall--
``(i) consult with other such public
housing agencies in the same metropolitan area,
or smaller regional area approved by the
Secretary, about the possible barriers and
other reasons for the disparities identified in
the location analysis required under
subparagraph (A);
``(ii) identify policies or practices that
those public housing agencies could adopt
individually or in collaboration, or other
strategies that recipients of grants or other
funding from the Secretary could adopt, to
reduce the barriers and disparities and
increase the share of families with children
and other demographic groups using vouchers in
higher-opportunity neighborhoods in the
metropolitan area or region; and
``(iii) include in the administrative plan
required under section 982.54 of title 24, Code
of Federal Regulations, or any successor
regulation, the policies that the public
housing agency has adopted under this
paragraph.
``(C) Assessment.--The Secretary shall include
public housing agency performance in achieving the goal
described in subparagraph (A)(i)(II) in the periodic
assessment of agency performance in managing the
program under this subsection required under part 985
of title 24, Code of Federal Regulations, or any
successor regulation.''.
(d) Required Regulatory Changes to Public Housing Agency
Consortia.--
(1) Definitions.--In this subsection:
(A) Moving to work demonstration program.--The term
``Moving to Work demonstration program'' means the
program established under section 204 of the
Departments of Veterans Affairs and Housing and Urban
Development, and Independent Agencies Appropriations
Act, 1996 (Public Law 104-134; 110 Stat. 1321-281).
(B) Public housing agency.--The term ``public
housing agency'' has the meaning given the term in
section 3(b)(6) of the United States Housing Act of
1937 (42 U.S.C. 1437a(b)(6)).
(2) Requirement.--Not later than 1 year after the date of
enactment of this Act, the Secretary of Housing and Urban
Development shall establish policies and procedures that--
(A) enable public housing agencies that elect to
operate in consortia under section 13(a) of the United
States Housing Act of 1937 (42 U.S.C. 1437k(a)),
excluding public housing agencies participating in the
Moving to Work demonstration program--
(i) to consolidate their funding contracts
for assistance provided under section 8(o) of
such Act (42 U.S.C. 1437f(o)) into a single
contract;
(ii) to consolidate their funding contracts
for assistance provided under subsections (d)
and (e) of section 9 of such Act (42 U.S.C.
1437g); or
(iii) to exercise the consolidation options
under each of clauses (i) and (ii); and
(B) enable public housing agencies to form partial
consortia under such section 13(a) (42 U.S.C. 1437k(a))
that consolidate the administration of certain aspects
of their housing programs to increase access to higher-
opportunity areas or for other purposes, subject to
such requirements as the Secretary may establish.
(3) Moving to work agencies.--Any flexibility or waiver
applicable to the Moving to Work demonstration program shall
not apply to any activities or funds administered through a
partial consortium formed under paragraph (2)(B) by 1 or more
public housing agencies participating in the Moving to Work
demonstration program.
TITLE IV--ESTATE TAX REFORM
SEC. 401. AMENDMENT TO INTERNAL REVENUE CODE OF 1986.
Except as otherwise expressly provided, whenever in this title an
amendment or repeal is expressed in terms of an amendment to, or repeal
of, a section or other provision, the reference shall be considered to
be made to a section or other provision of the Internal Revenue Code of
1986.
SEC. 402. RATE ADJUSTMENT.
(a) Increase in Estate Tax Rates.--The table contained in section
2001(c) is amended to read as follows:
If the amount with respect to which The tentative tax is:
the tentative tax to be
computed is:
Not over $13,000,000...........
55 percent of such amount.
Over $13,000,000 but not over
$93,000,000.
$7,150,000, plus 60 percent of
the excess of such
amount over
$13,000,000.
Over $93,000,000...............
$55,150,000, plus 65 percent of
the excess of such
amount over
$93,000,000.
(b) Reduction of Basic Exclusion Amount.--Paragraph (3) of section
2010(c) is amended to read as follows:
``(3) Basic exclusion amount.--For purposes of this
subsection, the basic exclusion amount is $3,500,000.''.
(c) Surtax on Billion Dollar Estates.--Section 2001 is amended--
(1) in subsection (b), by striking ``The tax'' and
inserting ``Subject to subsection (h), the tax'', and
(2) by adding at the end the following new subsection:
``(h) Surtax on Billion Dollar Estates.--
``(1) In general.--In the case of a taxable estate for
which the applicable amount is in excess of $1,000,000,000, the
tax determined under subsection (b) shall be increased by an
amount equal to 10 percent of such applicable amount.
``(2) Applicable amount.--For purposes of this subsection,
the applicable amount shall be equal to the sum of the amounts
under subparagraphs (A) and (B) of paragraph (1) of subsection
(b) for the taxable estate.''.
SEC. 403. REQUIRED MINIMUM 10-YEAR TERM, ETC., FOR GRANTOR RETAINED
ANNUITY TRUSTS.
(a) In General.--Subsection (b) of section 2702 is amended--
(1) by redesignating paragraphs (1), (2), and (3) as
subparagraphs (A), (B), and (C), respectively, and by moving
such subparagraphs (as so redesignated) 2 ems to the right;
(2) by striking ``For purposes of'' and inserting the
following:
``(1) In general.--For purposes of'';
(3) by striking ``paragraph (1) or (2)'' in paragraph
(1)(C) (as so redesignated) and inserting ``subparagraph (A) or
(B)''; and
(4) by adding at the end the following new paragraph:
``(2) Additional requirements with respect to grantor
retained annuities.--For purposes of subsection (a), in the
case of an interest described in paragraph (1)(A) (determined
without regard to this paragraph) which is retained by the
transferor, such interest shall be treated as described in such
paragraph only if--
``(A) the right to receive the fixed amounts
referred to in such paragraph is for a term of not less
than 10 years,
``(B) such fixed amounts, when determined on an
annual basis, do not decrease relative to any prior
year during the first 10 years of the term referred to
in subparagraph (A), and
``(C) the remainder interest has a value equal to
or greater than 10 percent of the value of the assets
transferred to the trust, determined as of the time of
the transfer.''.
(b) Effective Date.--The amendments made by this section shall
apply to transfers made after the date of the enactment of this Act.
SEC. 404. CERTAIN TRANSFER TAX RULES APPLICABLE TO GRANTOR TRUSTS.
(a) In General.--Subtitle B is amended by adding at the end the
following new chapter:
``CHAPTER 16--SPECIAL RULES FOR GRANTOR TRUSTS
``Sec. 2901. Application of transfer taxes.
``SEC. 2901. APPLICATION OF TRANSFER TAXES.
``(a) In General.--In the case of any portion of a trust to which
this section applies--
``(1) the value of the gross estate of the deceased deemed
owner of such portion shall include all assets attributable to
that portion at the time of the death of such owner,
``(2) any distribution from such portion to one or more
beneficiaries during the life of the deemed owner of such
portion shall be treated as a transfer by gift for purposes of
chapter 12, and
``(3) if at any time during the life of the deemed owner of
such portion, such owner ceases to be treated as the owner of
such portion under subpart E of part 1 of subchapter J of
chapter 1, all assets attributable to such portion at such time
shall be treated for purposes of chapter 12 as a transfer by
gift made by the deemed owner.
``(b) Portion of Trust to Which Section Applies.--This section
shall apply to--
``(1) the portion of a trust with respect to which the
grantor is the deemed owner, and
``(2) the portion of the trust to which a person who is not
the grantor is a deemed owner by reason of the rules of subpart
E of part 1 of subchapter J of chapter 1, and such deemed owner
engages in a sale, exchange, or comparable transaction with the
trust that is disregarded for purposes of subtitle A.
For purposes of paragraph (2), the portion of the trust described with
respect to a transaction is the portion of the trust attributable to
the property received by the trust in such transaction, including all
retained income therefrom, appreciation thereon, and reinvestments
thereof, net of the amount of consideration received by the deemed
owner in such transaction.
``(c) Exceptions.--This section shall not apply to--
``(1) any trust that is includible in the gross estate of
the deemed owner (without regard to subsection (a)(1)), and
``(2) any other type of trust that the Secretary determines
by regulations or other guidance does not have as a significant
purpose the avoidance of transfer taxes.
``(d) Deemed Owner Defined.--For purposes of this section, the term
`deemed owner' means any person who is treated as the owner of a
portion of a trust under subpart E of part 1 of subchapter J of chapter
1.
``(e) Reduction for Taxable Gifts to Trust Made by Owner.--The
amount to which subsection (a) applies shall be reduced by the value of
any transfer by gift by the deemed owner to the trust previously taken
into account by the deemed owner under chapter 12.
``(f) Liability for Payment of Tax.--Any tax imposed pursuant to
subsection (a) shall be a liability of the trust.''.
(b) Clerical Amendment.--The table of chapters for subtitle B is
amended by adding at the end the following new item:
``Chapter 16. Special Rules for Grantor Trusts''.
(c) Effective Date.--The amendments made by this section shall
apply--
(1) to trusts created on or after the date of the enactment
of this Act;
(2) to any portion of a trust established before the date
of the enactment of this Act which is attributable to a
contribution made on or after such date; and
(3) to any portion of a trust established before the date
of the enactment of this Act to which section 2901(a) of the
Internal Revenue Code of 1986 (as added by subsection (a))
applies by reason of a transaction described in section
2901(b)(2) of such Code on or after such date.
SEC. 405. ELIMINATION OF GENERATION-SKIPPING TRANSFER TAX EXEMPTION FOR
CERTAIN TRUSTS.
(a) In General.--Section 2642 is amended by adding at the end the
following new subsection:
``(h) Elimination of GST Exemption for Certain Trusts.--
``(1) In general.--
``(A) Transfers from non-qualifying trusts.--In the
case of any generation-skipping transfer made from a
trust that is not a qualifying trust, the inclusion
ratio with respect to any property transferred in such
transfer shall be 1.
``(B) Qualifying trust.--For purposes of this
subsection, the term `qualifying trust' means a trust
for which the date of termination of such trust is not
greater than 50 years after the date on which such
trust is created.
``(2) Trusts created before date of enactment.--In the case
of any trust created before the date of the enactment of this
subsection, such trust shall be deemed to be a qualifying trust
for a period of 50 years after the date of the enactment of
this subsection.
``(3) Date of creation of certain deemed separate trusts.--
In the case of any portion of a trust which is treated as a
separate trust under section 2654(b)(1), such separate trust
shall be treated as created on the date of the first transfer
described in such section with respect to such separate trust.
``(4) Date of creation of pour-over trusts.--In the case of
any generation-skipping transfer of property which involves the
transfer of property from 1 trust to another trust, the date of
the creation of the transferee trust shall be treated as being
the earlier of--
``(A) the date of the creation of such transferee
trust, or
``(B) the date of the creation of the transferor
trust.
In the case of multiple transfers to which the preceding
sentence applies, the date of the creation of the transferor
trust shall be determined under the preceding sentence before
the application of the preceding sentence to determine the date
of the creation of the transferee trust.
``(5) Regulations.--The Secretary may prescribe such
regulations or other guidance as may be necessary or
appropriate to carry out this subsection.''.
(b) Effective Date.--The amendments made by this section shall take
effect on the date of the enactment of this Act.
SEC. 406. SIMPLIFYING GIFT TAX EXCLUSION FOR ANNUAL GIFTS.
(a) In General.--Paragraph (1) of section 2503(b) is amended to
read as follows:
``(1) In general.--
``(A) Limit per donee.--In the case of gifts made
to any person by the donor during the calendar year,
the first $10,000 of such gifts to such person shall
not, for purposes of subsection (a), be included in the
total amount of gifts made during such year.
``(B) Cumulative limit per donor.--
``(i) In general.--The aggregate amount
excluded under subparagraph (A) with respect to
all transfers described in clause (ii) made by
the donor during the calendar year shall not
exceed twice the dollar amount in effect under
such subparagraph for such calendar year.
``(ii) Transfers subject to limitation.--
The transfers described in this clause are--
``(I) a transfer in trust,
``(II) a transfer of an interest in
a passthrough entity,
``(III) a transfer of an interest
subject to a prohibition on sale, and
``(IV) any other transfer of
property that, without regard to
withdrawal, put, or other such rights
in the donee, cannot immediately be
liquidated by the donee.''.
(b) Conforming Amendment.--Section 2503 is amended by striking
subsection (c).
(c) Regulations.--The Secretary of the Treasury, or the Secretary
of the Treasury's delegate, may prescribe such regulations or other
guidance as may be necessary or appropriate to carry out the amendments
made by this section.
(d) Effective Date.--The amendments made by this section shall
apply to any calendar year beginning after the date of the enactment of
this Act.
TITLE V--ACCESSIBILITY REQUIREMENTS
SEC. 501. ACCESSIBILITY REQUIREMENTS.
In the case of housing that is constructed, altered, or otherwise
assisted using amounts made available to the Secretary of Housing and
Urban Development under this Act or an amendment made by this Act,
sections 8.22 and 8.23 of title 24, Code of Federal Regulations (or any
successor regulations) shall be applied such that the number of
dwelling units required to be accessible under those sections is twice
the number that would otherwise be required to be accessible under
those sections.
<all>
Introduced in House
Introduced in House
Referred to the Committee on Financial Services, and in addition to the Committees on the Judiciary, Veterans' Affairs, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Financial Services, and in addition to the Committees on the Judiciary, Veterans' Affairs, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Financial Services, and in addition to the Committees on the Judiciary, Veterans' Affairs, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Committee on Financial Services, and in addition to the Committees on the Judiciary, Veterans' Affairs, and Ways and Means, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.
Referred to the Subcommittee on Economic Opportunity.
Referred to the Subcommittee on the Constitution, Civil Rights, and Civil Liberties.
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